Q4 2025 First Quantum Minerals Ltd Earnings Call

Speaker #1: Thank you for standing by. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quantum Minerals Q4 2025 Results Conference Call.

Speaker #1: All lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .

Speaker #1: If you would like to a ask question during this time , simply press star , followed by the number one on your telephone keypad .

Speaker #1: If you would like to withdraw your question , press star one again . Thank you . I will now turn the call over to Miss Bonita , director , Investor Relations and Capital Markets .

Bonita To: Thank you, operator, and thank you everyone for joining us today to discuss our Q4 results. During the call, we will be making forward-looking statements. As such, I encourage you to read the cautionary notes that accompany this presentation, our MD&A, and the related news release. As a reminder, the presentation is available on our website and that all dollar references are in US dollars unless otherwise noted. On today's call are Tristan Pascall, our Chief Executive Officer, Ryan MacWilliam, our Chief Financial Officer, and Rudi Badenhorst, our Chief Operating Officer. With that, I will hand the call over to Tristan for opening remarks. Thank you.

Speaker #1: go Please ahead .

Speaker #2: Thank you . Operator . And thank you , everyone for joining us today to discuss our fourth quarter results . During the call , we will be making forward looking statements .

Speaker #2: As such , I encourage you to read the cautionary notes that accompany this presentation . Our mDNA and the related news release . As a reminder , the presentation is available on our that all website and dollar references are in US dollars unless otherwise noted .

Speaker #2: today's On call , our Tristan Pascall , our chief Executive Officer Ryan MacWilliam , our Chief Financial Officer and Rudi Badenhorst our Chief Operating officer .

Tristan Pascall: Thank you, Bonita, and thank you everybody for joining us today to discuss our Q4 and year-end results. We entered 2025 with four clear priorities, and our steady delivery on these throughout the year has now positioned us well for a strong 2026.... Firstly, we set out to strengthen our balance sheet and enhance our financial flexibility, and this was achieved through the support of our investors in a series of bond transactions that extended the company's debt maturities and reduced our cost of capital. Additionally, we completed a $1 billion streaming transaction with Royal Gold, that also represents the largest US corporate investment in Zambia to date.

Speaker #2: And with that , I will hand the call over to Tristan for opening remarks . Thank you .

Speaker #3: Thank you . Benita , and thank you , everybody for joining us today to discuss our fourth quarter and year end results . We entered 2025 with four clear priorities and our steady delivery on these throughout the year has now positioned us well for a strong 2026 .

Speaker #3: Firstly, we set out to strengthen our balance sheet and enhance our financial flexibility. And this was achieved through the support of our investors in a series of bond transactions that extended the company's debt maturities and reduced our cost of capital.

Speaker #3: Additionally , we completed a $1 billion streaming transaction with Royal Gold that also represents the largest US corporate investment in Zambia to date .

Tristan Pascall: Our hedging program, which we put in place in 2024, fulfilled its intended role as risk mitigation during the construction of the Kansanshi S3 Expansion, and we expect to regain full exposure to spot copper prices by the second half of the year, on which Ryan will speak in his financial review. Our next priority, safe and productive operational performance, remains a continued focus, and the company achieved its 2025 production targets, which Rudi will cover in his operational review. Also, a priority in 2025 was the execution and delivery of the S3 Expansion project at Kansanshi. I'm very pleased with our progress at S3, which achieved a major milestone with the declaration of commercial production last December, and I will speak in more detail on this towards the end of my prepared remarks. Our fourth priority continues to be achieving a long-term resolution for Cobre Panama.

Speaker #3: Our hedging program , which we put in place in 2024 , fulfilled its intended role as risk mitigation during the construction of the Kansanshi S3 expansion , and we expect to regain full exposure to spot copper prices by the second half of the year , on which Ryan will speak in his financial review .

Speaker #3: Our next priority: safe and productive operational performance remains a continued focus, and the company achieved its 2025 production targets, which Rudi will cover in his operational review.

Speaker #3: Also , a priority in 2025 was the execution and delivery of the S3 expansion project at Constante . I'm very pleased with our progress at S3 , which achieved a major milestone with the declaration of commercial production last December .

Speaker #3: And I will speak in more this detail on towards the end of my prepared remarks . Our fourth priority continues to be achieving a long term resolution for Cobra Panama .

Tristan Pascall: While we await the start of formal discussions with the government of Panama on this matter, we have made meaningful progress on the Preservation and Safe Management Plan to ensure the assets remain in good condition and the site is safely and well environmentally managed. During Q4, Unit 2 at the power plant was successfully hot commissioned and synchronized to the grid. The unit achieved its full design capacity of 150MW output in December, reflecting the effectiveness of the maintenance program undertaken at site over the past two years. The plant is currently operating steadily at an average output of around 120MW, consistent with the site's power requirements and broader national grid demands. The remaining unit, Unit 1, moved into commissioning in early February and is performing according to expectations.

Speaker #3: Whilst we await the the start of formal discussions with the Government of Panama on this matter , we have made meaningful progress on the preservation of safe management plan to ensure the assets remain in good condition and the site is safely and well environmentally managed .

Speaker #3: During the fourth quarter , unit two at the power plant was successfully hot , commissioned and synchronised to the grid . The unit achieved its full design capacity of 150MW .

Speaker #3: Output . In December , reflecting the effectiveness of the maintenance programme undertaken at site over the past two years . The plant is currently operating steadily at an average output of around 120MW , consistent with the site's power requirements , and broader National grid demand .

Speaker #3: The remaining unit , unit one , moved into commissioning in early February and is performing according to expectations . Subsequent to quarter end in January , the President of Panama announced that the government would approve the removal , processing and export of stockpiled or at Cobra Panama .

Tristan Pascall: Subsequent to quarter end, in January, the President of Panama announced that the government would approve the removal, processing, and export of stockpiled ore at Cobre Panama. It is important to emphasize that processing of the ore stockpiles does not constitute a restart of mining operations, as the processing of this material is intended to address environmental and operational risks linked to the long-term stockpile storage, such as acid rock drainage, while also supplying necessary material for reinforcement of our tailings management facility. We continue to await formal approvals. However, on a preliminary basis, we expect the processing of the stockpiles could begin roughly 3 months after receiving formal regulatory notice and would take approximately 1 year to complete. From this stockpile, we estimate production of approximately 70,000 tons of copper, and this activity would support the costs of ongoing asset and environmental management at the mine.

Speaker #3: It is important to emphasize that processing of the ore stockpiles does not constitute a restart of mining operations and processing of this material is intended to address environmental and operational risks linked to the long term stockpile storage , such as acid rock drainage , while also supplying necessary material reinforcement of our tailings management facility .

Speaker #3: We continue to await formal approvals , however , on a preliminary basis , we expect that processing of the stockpiles could begin roughly three months after receiving formal regulatory notice and would take approximately one year to complete .

Speaker #3: From this stockpile, we estimate production of approximately 70,000 tonnes of copper, and this activity would support the costs of ongoing asset and environmental management at the mine.

Tristan Pascall: We are pleased with the government's decision to authorize the processing of the stockpiles. Alongside allowing proper environmental stewardship, this will generate significant income for the country and create jobs for over 1,000 additional Panamanians, along with broader indirect employment across local procurement, such as equipment, supply, transportation, logistics, camp, and food services. We continue to await the formal approvals for removal and processing of the stockpiles, which will be carried out in close coordination with the government of Panama and in full compliance with our Preservation and Safe Management Plan. It is important to reiterate that the processing of stockpiles is not a reopening mine, and we echo the president's call for transparency and engagement. The resources at Cobre Panama belong to the people of Panama.

Speaker #3: We are pleased with the government's decision to authorise the processing of the stockpiles , alongside allowing proper environmental stewardship . This will generate significant income for the country and create jobs for over 1000 additional Panamanians , along with broader indirect employment across local procurement such as equipment supply , transportation , logistics camp and food services .

Speaker #3: We continue to await the formal approval for removal and processing of the stockpiles , which will be carried out in close coordination with the Government of Panama and in full compliance with our preservation and safe management plan .

Speaker #3: It important to reiterate that the processing of stockpiles is not a reopening mine , and we echo the president's call for transparency and engagement .

Tristan Pascall: We remain committed to dialogue to achieve an amicable and durable resolution of the mine for the country and the Panamanian people. In parallel, the integral audit conducted by SGS commenced in Q4. Our team in Panama continues to cooperate fully with the audit, providing all requested documentation and cooperating in the field visit inspections. We welcome the audit, and we are confident that it will confirm that Cobre Panama has always operated at the highest environmental standards. The integral audit is expected to be concluded in April 2026. Separate to the integral audit, and as part of our ESIA obligations, the authorities continued with the statutory biannual audits of Cobre Panama's compliance. We are pleased to share that the most recently published audit achieved 100% compliance.

Speaker #3: The resources at Cobre Panama belong to the people of Panama. We remain committed to dialogue to achieve and maintain an amicable and durable resolution of the mine for the country and the Panamanian people.

Speaker #3: In parallel , the Integral audit conducted by SGS commenced in the fourth quarter . Our team in Panama continues to cooperate fully with the audit , providing all requested documentation and cooperating in the field .

Speaker #3: Visit inspections . We welcome the audit and we are confident that it will confirm that Cobre Panama has always operated at the highest environmental standards .

Speaker #3: Integral audit The is expected to concluded be in April 2026 , separate to the Audit , Integral and as part of our The authorities obligations .

Speaker #3: have continued with a statutory bi annual audits of Cobra , Panama's compliance . We are pleased to most share that the recently published audit achieved 100% compliance .

Tristan Pascall: The latest external audit field phase was completed in November, and we expect a final report during Q1. I will now pass the call to Rudi for his operational review.

Speaker #3: The latest external audit feel field phase was completed in November , and we a final report during the first quarter . I will now pass the call to Rudy operational for his review .

Rudi Badenhorst: Thank you, Tristan. We are happy to have closed our 2025, achieving our revised guidance ranges. For the year, we achieved copper production of 396,000 tons within the revised copper guidance range, while annual gold production of 152,000 ounces and annual nickel production of 23,000 tons were above the top ends of the respective revised guidance ranges. Looking to 2026, we remain focused on cost management and safe operational execution across all our sites.... During Q4, total copper production was approximately 100,000 tons, a 4% decrease from the previous quarter, as Sentinel continued to be impacted by bolt fatigue, maintenance, and rainy season power interruptions. Copper sales were strong at 108,000 tons, exceeding production by approximately 8,000 tons.

Speaker #4: Thank you Tristan . We are happy to have closed our 2025 achieving our revised guidance ranges for the year . We achieved copper production of 396,000 tonnes within the revised copper guidance range , while annual gold production of 152,000oz and annual nickel production of 23,000 tonnes were above the top end of the respective revised guidance ranges .

Speaker #4: Looking to 2026 , we remain focused on cost management and safe operational execution across all our sites . During the fourth quarter , total copper production was approximately 100,000 tonnes .

Speaker #4: A 4% decrease from the previous quarter . As Sentinel continued to be impacted by bolt fatigue , maintenance rainy and season power interruptions , copper sales strong at 108,000 tonnes , exceeding production by approximately 8000 tonnes a consistency we delivered a solid quarter with 48,000 tonnes of copper , up 774 tonnes from the previous quarter .

Rudi Badenhorst: At Kansanshi, we delivered a solid quarter, with 48,000 tons of copper, up 774 tons from the previous quarter. This improvement was driven by a successful ramp-up of the Kansanshi S3 Expansion, which contributed to higher overall mill throughput. Notably, the site achieved a record monthly mill tons in October. Following successful commissioning and strong performance across all key production indicators, the Kansanshi S3 Expansion declared commercial production as of 1 December. The crushing and milling circuit performed well, with significant improvements in stability and uptime, as enhancements to the conveyor routes took effect. Work on TSF2 is progressing well and remains on track for completion in Q2 of this year. In 2026, Kansanshi is expected to produce 175,000 to 205,000 tons of copper and 110,000 to 120,000 ounces of gold.

Speaker #4: This improvement was driven by a ramp up of S3 expansion , which contributed to higher overall throughput . Notably , the site achieved a record monthly Malt tonnes in October following successful commissioning and strong across performance all key production indicators .

Speaker #4: S3 declared commercial production as of December 1st. The crushing and milling circuit performed well, with significant improvements in stability and uptime as enhancements to the conveyor routes took effect.

Speaker #4: Work on tailings Storage Facility two is progressing well and remains on track for completion in the second quarter of this year . In 2026 , Kansanshi is expected to produce 175 to 205,000 tonnes of copper and 110 220,000oz of gold .

Rudi Badenhorst: Of this, S3 is expected to contribute over 84,000 tons of copper, sourced evenly from low-grade stockpiles and fresh ore from the Southeast Dome. At Sentinel, copper production totaled 48,000 tons in Q4, a reduction of 3,000 tons from the previous quarter. This decrease was due to lower throughput and lower grades. Throughput was impacted by ongoing maintenance related to bolt fatigue on Ball Mill 2, while grades were affected by a higher proportion of material from Stage 3. Looking ahead to 2026, production at Sentinel is expected to be between 190,000 and 220,000 tons of copper. The operational focus will continue to be on increasing throughput and improving consistency through optimization of blast fragmentation, maintaining stable crushed ore stockpile volumes, improving milling rates, and the flotation recovery.

Speaker #4: Of this S3 is expected to contribute over 84,000 tonnes of copper , sourced evenly from grade low stockpiles and fresh oil from the south east dome .

Speaker #4: At Sentinel , copper production totalled 48,000 tonnes in Q4 , a reduction of 3000 tonnes from the previous quarter . This decrease was due to lower throughput and lower grades .

Speaker #4: impacted by Throughput was ongoing maintenance bolt fatigue on Bournemouth two , while grades were affected by higher proportion of material from stage three .

Speaker #4: Looking ahead to 2026 , production at Sentinel is to be expected between 190 and 220,000 tonnes of copper . The operational focus will continue to be on increasing throughput and improving consistency through optimisation of blast fragmentation , maintaining stable crushed or stockpile volumes , improving milling rates and the flotation recovery .

Rudi Badenhorst: Grades are expected to strengthen modestly as we access previously sterilized stage 1 and stage 2 ore, following the crusher relocations. Stage 4 ore is expected to come online in the second half of this year. Regarding Ball Mill 2, in collaboration with the original equipment manufacturer and specialist consultants, we have established a long-term fatigue management strategy. We will continue managing the fatigue through this year with full remedial work planned for the first half of 2027, when new parts become available. This approach ensures ongoing performance while enabling a permanent solution through next year's planned upgrade. Enterprise delivered excellent performance, achieving record quarterly production of 9,000 tons of nickel, a 52% increase from Q3. This improvement was driven by improved recoveries and mining of fresh, higher-grade sulfide zones at lower elevations in the bottom of the pit.

Speaker #4: Grades are expected to strengthen modestly as we access previously sterilized stage one and stage two . All following the crusher relocations . Stage four is expected to come in the online second half of this year .

Speaker #4: Regarding Ball Mill Two, in collaboration with the original equipment manufacturer and specialist consultants, we have established a long-term fatigue management strategy.

Speaker #4: We will continue managing the fatigue through this year with full remedial work planned for the first half of 2027 , when new parts become available .

Speaker #4: This approach ensures ongoing performance while enabling a permanent solution through next year's planned upgrade . Enterprise delivered excellent performance , achieving record quarterly production of 9000 tonnes of nickel , a 52% increase from quarter three .

Speaker #4: This improvement was driven by improved recoveries and mining of fresh, higher-grade sulphide lower zones at elevations in the bottom of the pit.

Rudi Badenhorst: For 2026, Enterprise is expected to produce 30,000 to 40,000 tons of contained nickel. Our focus at Enterprise remains on maximizing ore supply, improving comminution efficiency, and maintaining an optimum run-of-mine stockpile to support blending and stable throughput. Grade control drilling will continue to help reduce dilution and improve recoveries. At Cobre Panama, we continued detailed inspections and preservation activities during the quarter. Working closely with original equipment manufacturer teams, we completed reviews of the ultra-class haul trucks, production drills, and rope shovels. Their findings are being integrated into our ongoing preservation strategies to ensure equipment integrity, and future reliability. Thank you. With that, I'll hand the call over to Ryan for his financial review.

Speaker #4: For 2026 , enterprise is expected to produce 30 to 40,000 tonnes of contained nickel . Our focus at enterprise remains on maximising all supply , improving and efficiency optimum an run of mine stockpile to support blending and stable throughput .

Speaker #4: Grade control drilling will continue to help reduce dilution and improve recoveries. At Corporate Panama, we continued detailed inspections and preservation activities during the quarter, working closely with the equipment manufacturer teams.

Speaker #4: We completed reviews of the ultra class haul trucks , production drills and rope shovels . The findings are being integrated into our ongoing preservation strategies to ensure equipment is to ensure equipment integrity in .

Speaker #4: And future reliability. Thank you. With that, I'll hand the call over to Ryan for his financial review.

Ryan MacWilliam: Thank you, Rudi. Starting with commodity markets, which ended the year on a buoyant note, a sentiment which has continued into 2026. During Q4, the copper price averaged $5.03 per pound, peaking at $5.71. A strong performance driven by both supply and demand. On the supply side, four of the world's top 20 largest copper mines are currently running at reduced production. On the demand side, copper stockpiles continue to grow in the US due to the threat of potential tariffs on future imports. We would note that it is important in times like these, where prices start to rise, that we remain laser-focused on costs. This helps avoid the margin compression that can occur as the benefit of stronger commodity prices on the revenue line are offset by a rising cost base.

Speaker #5: Thank you . Rudi . Starting with commodity which ended the year markets , on a note buoyant , a sentiment which has continued into 2026 .

Speaker #5: During Q4 , the copper price averaged $5.03 per pound , peaking at $5.71 . The strong performance , driven by both supply and demand and the supply side four of the world's top 20 largest copper mines are currently running at reduced production and on the demand side , copper stockpiles continue to grow in the US due threat of to the potential tariffs on future imports .

Speaker #5: We would is note that it important in times like these where prices start to rise , that we remain laser focused on costs .

Speaker #5: This avoid the helps margin compression that can occur as the benefit of commodity prices stronger on the revenue line are offset by a rise in cost base .

Ryan MacWilliam: In this respect, it is helpful that despite generally strong commodity markets, oil prices remain fairly subdued, with resilient US and OPEC production keeping the market well supplied. Turning to our fourth quarter results. Revenue was up 10% quarter over quarter, underpinned by higher metal prices. This drove a 7% increase in EBITDA and a $73 million improvement in net earnings. Copper C1 costs rose by 13% to $2.21 per pound, reflecting the lower production that Woody spoke to, along with higher power, labor, and maintenance costs. All price tailwinds resulted in elevated byproduct credits, providing a 14 cent offset. The Enterprise quarterly nickel all-in sustaining costs came in at $3.96 per pound, against nickel prices, which averaged $7.

Speaker #5: In this respect, it is helpful that, despite generally strong commodity markets, oil prices remain fairly subdued, with resilient US and OPEC production keeping the market well supplied.

Speaker #5: Turning to our fourth quarter results 10% quarter over , up quarter , underpinned by higher metal prices . This drove a 7% increase in EBITDA and a $73 million improvement in net earnings .

Speaker #5: Copper C1 costs rose by 13% to $2.21 per pound , reflecting the lower production that really spoke to , along with higher , higher power labor and maintenance costs .

Speaker #5: All price tailwinds resulted in elevated byproduct credits , providing a $0.14 offset . The Quarterly nickel . All in sustaining costs , came in at a $3.96 per pound against nickel prices , which averaged $7 .

Ryan MacWilliam: These strong margins are a reminder of the high-grade nature of the Enterprise nickel sulfide ore body. Nickel prices were depressed for much of last year, with the market being in surplus, but have recently rallied following production cuts announced in Indonesia. At Cobre Panama, the P&SMP program continues to incur between $15 and 17 million per month to support the environmental stewardship of the mine and local procurement. $45 million was incurred in Q4, and $400 million has been spent since the mine was placed on P&SMP. Operating costs to process the stockpiled ore will cost between $12 and 12.50 per tonne mill. Upfront cash investment will be required, with cash outflows peaking at around $250 million.

Speaker #5: These strong margins are a reminder of the high grade nature of the enterprise . Nickel sulfide ore body . Nickel prices were depressed for much of last year , with the market being in surplus , but have recently rallied production following cuts announced in Indonesia .

Speaker #5: At Kobe , Panama , the Nzm program continues to incur between 15 and $17 million per month to support the environmental stewardship of the mine and local procurement .

Speaker #5: $45 million was incurred in Q4, and $400 million has been spent since the mine was placed on Cobre Panama. Operating costs to process the stockpiled ore will cost between $12 and $12.50 per tonne, milled. Upfront cash investment will be required, with cash outflows peaking at around $250 million. On the basis that formal approval is received shortly for the stockpiles, we would expect to be broadly cash flow neutral by year end at corporate Panama, inclusive of Cobre Panama costs.

Ryan MacWilliam: On the basis that formal approval is received shortly for the stockpiles, we would expect to be broadly cash flow neutral by year-end at Cobre Panamá, inclusive of P&SMP costs. Further, on care and maintenance, the sale of Las Cruces both simplifies our portfolio and delivers approximately $30 million in annual cost savings, while paving the way for development of the project under a new owner. On the balance sheet, it is pleasing to announce our new syndicated term loan and revolving credit facility. This frees up about $360 million of liquidity in this year, while also securing a larger RCF and extending both maturities to 2029. The refinancing process has underscored the strong backing we continue to receive from our banks, with the participation of several new lenders in a highly oversubscribed transaction.

Speaker #5: Further on , carried maintenance . The sale of Las Cruces , both simplifies our portfolio and delivers approximately $30 million in annual cost savings , while paving the way for development of the project owner under a new .

Speaker #5: On the balance sheet , it is pleasing to announce our new syndicated term loan and revolving credit facility This frees . up about $360 million of liquidity in this year , while also securing a larger RCF and extending both maturities to 2029 .

Speaker #5: The refinancing process has underscored the strong backing we continue to receive from our banks , with the participation of several new lenders in a highly oversubscribed transaction .

Ryan MacWilliam: The availability of the facilities is subject to customary closing conditions. Furthermore, we've also announced a new $1.35 billion, 10-year unsecured bond offering this morning. Lastly, I'm pleased to highlight that this week, the rating agency, S&P, has moved our B rating to a positive outlook, recognizing our progress in strengthening the balance sheet and their positive expectations on the return of Cobre Panama later this year. Moving on to guidance. Across the 3-year guidance period, we've lifted our copper C1 and all-in cost guidance ranges to reflect the updated production cut guidance, higher costs, and the incorporation of inflationary pressures, which are somewhat offset by stronger gold prices. These higher costs are driven by the appreciation of the kwacha, the Zambian collective bargaining agreements, and increased maintenance across Sentinel and Kansanshi.

Speaker #5: The availability of the facilities is subject to closing conditions . Furthermore , we've also announced a new $1.35 billion , ten year unsecured bond offering this morning .

Speaker #5: And lastly , I'm pleased to highlight that this week , the rating agency S&P has moved our B rating to a positive outlook , recognising our progress in strengthening the balance sheet and their positive expectations on the return of Cobra Panama later this year .

Speaker #5: Moving on to guidance . Across the three year guidance period , we have lifted our copper C1 and all in cost guidance ranges to reflect the updated production guidance .

Speaker #5: Higher costs and the incorporation of inflationary pressures , which are somewhat offset by stronger gold prices . These higher costs are driven by the appreciation of the kwacha , the Zambian collective bargaining agreements .

Ryan MacWilliam: Both copper C1 and all-in costs trend downwards across the three-year guidance period, as production improves, with higher grades expected to be fed into the Kansanshi S3 circuit from the new Southeast Dome pit. While cash cost guidance in 2026 and 2027 benefited from higher assumed gold prices, Guelb Moghrein gold sales will no longer be treated as byproduct credits, as gold production is expected to pause from Q2 2026. On CapEx guidance, we spent about $240 million less in 2025 than initially guided on, with some of that moving into 2026, such as plant replacements at Kansanshi. 2026 guidance also includes added work on Sentinel's Ball Mill 2, input crusher for relocation, and a third tailings pipeline.

Speaker #5: And increased maintenance across Sentinel and Kansanshi , both copper C1 and all in costs trend downwards across the three year guidance period as production improves with higher grades expected to be fed into the S3 circuit from the new south east dome pit .

Speaker #5: While cash cost guidance in 2026 and 2027 benefited from higher assumed gold prices , while migraine gold sales will no longer be treated as byproduct credits as gold production is expected to pause from Q2 2026 .

Speaker #5: On CapEx guidance , we spent about $240 million less in 2025 than initially guided on , with some of that moving into 2026 , such as planned replacements at concessionary 2026 guidance also includes the added work on Sentinel's Bournemouth two in Russia for relocation , and a third tailings pipeline .

Ryan MacWilliam: CapEx reduces over the course of the three-year guidance period, driven by the wind down of Southeast Dome pre-stripping at Kansanshi, and the completion of Zambian tailings facility works, as well as the crusher installation at Kansanshi and the crusher relocation at Sentinel. Onto hedging. The collars that rolled off in Q4 yielded copper and gold hedge losses of $42 million in aggregate. Our 2026 planned copper and gold production both remain roughly 20% hedged for the full year and 50% hedged for the first half of the year. At current spot prices, we anticipate losses of around $220 million and $23 million, respectively, on our copper and gold hedge positions. Hedging has been an important tool in providing us with stability and downside protection during the S3 construction and ramp up.

Speaker #5: CapEx reduces over the course of the three year guidance period , driven by the wind down of South East Dome stripping Kansanshi and the completion of Zambian tailings facility works , as well as the crush installation at Kansanshi and the Crusher relocation at Sentinel .

Speaker #5: Onto hedging the collars that rolled off in Q4 yielded copper and gold hedge losses of $42 million in aggregate . Our 2026 planned copper and gold production both remain roughly 20% hedged for the full year , and 50% hedged for the first half of the year .

Speaker #5: A current spot prices anticipate losses of $220 million $23 million , respectively , on our and copper and gold hedged positions . Hedging has been an important tool in providing us with stability and downside protection during the construction and ramp up .

Ryan MacWilliam: However, at this stage, our existing hedges expire by mid-year, and we do not anticipate adding more hedges, given our strong margins at these copper prices. During the quarter, net debt increased by $441 million to $5.2 billion. This was driven by two key factors. Firstly, an increase in working capital as accounts receivable increased due to late shipments in December. And secondly, the sharp rise in copper prices at the year-end necessitated higher margin deposits associated with our short-term customer QP hedges. Both of these are expected to unwind through the current quarter at stable copper prices. Liquidity remains very strong at $1.9 billion, comprising $644 million in cash and a fully undrawn revolving credit facility of $1.3 billion at quarter end.

Speaker #5: However , at this stage , our existing hedges expire by mid-year and we do not anticipate adding more hedges given our strong margins at these copper prices .

Speaker #5: During the quarter , net debt increased by $441 million to 5.2 billion . This was driven by two key factors . Firstly , an increase in working capital as accounts receivable increased due to late shipments in December , and secondly , the sharp rise in copper prices at the year end necessitated higher margin deposits associated with our short term customer QP hedges .

Speaker #5: Both of these are expected to unwind through the current quarter at stable copper prices . The remains very strong at 1.9 billion , comprising of $644 million in cash and a fully undrawn credit reserve revolver of $1.3 billion at quarter end .

Rudi Badenhorst: ...In short, we closed the year with supportive copper and gold markets, a disciplined cost management approach, a strengthened balance sheet, and solid liquidity, positioning us very well for 2026. I will now hand the call back to Tristan.

Speaker #5: In short , we with closed the year supportive copper and gold markets . A disciplined cost management approach , a strengthened balance sheet and solid liquidity , positioning us very well for 2026 .

Tristan Pascall: Thank you, Ryan. Over the last two years, it has been a highlight of my prepared remarks to speak on the progress at S3. However, with the announcement of commercial production, this will be part of Rudi's operational review going forward. I am extremely proud of our delivery of the Kansanshi S3 expansion project. This has been a product of huge collaborative effort across our projects and operations teams, and a supportive investment climate delivered by the government of Zambia. As Rudi noted, the S3 expansion delivered strong performance across all key production indicators, which supported the declaration of commercial production. Broadly speaking, while several metrics were considered, commercial production was declared once S3 demonstrated consistent performance at 90% of its design capacity. This was accomplished within 5 months of initial production. This is a significant achievement for a project of this size.

Speaker #5: I now call back hand the to Tristan .

Speaker #3: Thank you Ryan . Over the last two years , it has been a highlight of my prepared remarks to speak on the S3 progress at .

Speaker #3: However, with the announcement of commercial production, this will be part of Rudi's operational review going forward. I am extremely proud of our delivery of the S3 expansion project.

Speaker #3: This has been a product of huge collaborative effort across our projects and operations teams , and a climate supportive delivered by the investment Government of Zambia .

Speaker #3: As Rudy noted , the S3 expansion delivered strong performance across all key production indicators , which supported the declaration of commercial production . Broadly speaking , while several metrics were considered commercial production was declared once S3 demonstrated consistent performance at 90% of its design capacity .

Speaker #3: This was accomplished within five months of initial production . This is a significant achievement for a project of this size at a throughput capacity of 25 million tonnes per annum , S3 is one of the largest global brownfield copper projects delivered in recent years , and I would like to congratulate and express my gratitude to the entire team that delivered this successful outcome .

Tristan Pascall: At a throughput capacity of 25 million tons per annum, S3 is one of the largest global brownfield copper projects delivered in recent years, and I would like to congratulate and express my gratitude to the entire team that delivered this successful outcome. In terms of new project opportunities at First Quantum, I am pleased to announce that we'll be shortly releasing an updated 43-101 technical report for the Taca Taca project later this month. Taca Taca is one of the world's largest undeveloped copper assets, and Argentina is emerging as an increasingly competitive mining jurisdiction, supported by recent economic reforms aimed at attracting greater foreign direct investment. Globally, there are several growth projects being advanced to address the anticipated supply deficit in the copper market. However, I firmly believe that First Quantum is uniquely positioned to deliver on this growth.

Speaker #3: In new project opportunities at first Quantum , I am pleased to announce that we will be shortly releasing an updated 43 101 technical report for the Takataka project .

Speaker #3: Later this month . Takataka is largest one of the world's undeveloped copper assets and Argentina is emerging as an increasingly competitive mining jurisdiction supported by recent economic reforms aimed at attracting greater foreign direct investment .

Speaker #3: Globally , there are several growth projects being advanced to address the anticipated supply deficit in the copper market . However , I firmly believe that First quantum is uniquely positioned to deliver on this growth we expect Takataka to follow .

Tristan Pascall: We expect Taca Taca to follow First Quantum's tested and proven design and construction approach of large-scale SAG mill processing trains with expansion optionality. Taca Taca will involve, for example, installation of First Quantum's seventh and eighth SAG mill at the 40-foot size and will leverage from the company's extensive experience in development and operations at Sentinel, Cobre Panama, and most recently, the S3 expansion at Kansanshi. We look forward to sharing the updated technical report, which represents an important step in de-risking the project as we continue to advance the ESIA, prepare our RIGI application, and evaluate the optimal financing strategy for the project. While Taca Taca is important to First Quantum's long-term growth options, and similarly, this year, we will also advance the La Granja and Haquira projects on their own merits.

Speaker #3: First , Quantum's tested and proven design and construction approach of large scale SAG mill processing trains with expansion optionality . Takataka will involve , for example , installation of first quantum , seventh and eighth SAG mill at the 40 foot size and will leverage from the company's extensive experience in development and operations at Sentinel Cobra , Panama and most recently , the S3 expansion at Kansanshi .

Speaker #3: We look forward to sharing the updated report , which represents an important step in de-risking the project as we continue to advance the Isya prepare our rigging application evaluate the optimal , the financing strategy for the project .

Speaker #3: Whilst Takataka is important to first quantum's long term growth options and similarly , this year we will also advance the Lagras and Hakura projects on their own merits .

Tristan Pascall: I want to clearly state that our priorities for this year, 2026, remain: firstly, progressing towards resolution at Cobre Panama. Secondly, to ensure continued safe and productive performance at our operations, including ramp up of the Kansanshi S3 expansion project. And thirdly, to strengthen the balance sheet to ensure that the company is well-positioned to support future growth. We had meaningful achievements in our priorities for 2025, and I'm extremely, extremely proud and grateful for the dedication of the entire team at First Quantum. Our position today is a direct result of their hard work. We have collectively accomplished a lot over the last couple of years, and I'm confident in the outlook for First Quantum because of the deep talent pool within the company, our meaningful participation and long-term relationships in our host countries, and the growing strategic importance of copper. Thank you, operator.

Speaker #3: I want to clearly state that our priorities for this year , 2026 remain . Firstly , progressing towards of resolution Cobra Panama . Secondly , to ensure continued safe and productive performance at our operations , including ramp up of the S3 expansion project .

Speaker #3: And thirdly , to strengthen the balance sheet to ensure that the company is well positioned to support future growth . We had meaningful achievements in our priorities for 2025 , and I am extremely , extremely proud and grateful for the dedication of the entire team of our First Quantum , position is a direct today result of their hard work .

Speaker #3: We have collectively accomplished a lot over the last couple of years , and I am confident in the outlook for First Quantum . Because of the deep talent pool within the company .

Speaker #3: Our meaningful participation and long term relationships in our host countries , and the growing strategic importance of copper . Thank you . Operator I am happy to open the lines for questions .

Tristan Pascall: I'm happy to open the line for questions.

Operator: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Ralph Profiti with Stifel.

Speaker #3: .

Speaker #1: At this time . I would like to remind everyone , in order to ask a question , press star . Then the number one on your telephone keypad .

Speaker #1: We'll pause for just a moment to compile the Q&A roster . Your first question comes from Ralph Profiti with Stiefel .

Ralph Profiti: Thanks, operator, and good morning, team. Tristan and Rudi, when it comes to the potential for the same remedial work and permanent solutions that you're seeking in ball mill number 2 at Sentinel, transferring that over into ball mill number 1, are you gonna wait for the review to make that conclusion? And when will that be? When will that review be concluded?

Speaker #6: Thanks . Operator , and good morning , team Tristan and Rudy . When it comes to the potential for the same remedial work and permanent solutions that you're seeking in Ball Mill number two at Sentinel , transferring that over into ball mill number one , are you going to wait for the review to make that conclusion ?

Tristan Pascall: Yeah. Thanks very much for the question, Ralph. Rudi, do you want to take that one?

Speaker #6: And and when will that be ? When will that review be concluded ?

Rudi Badenhorst: Yeah, no problem, Tristan. Hi, Ralph. The final repairs to Ball Mill 2, as established with the OEM and ourselves, will take place in the first half of 2027. Now, we have ordered an additional end can and discharge, upgraded discharge end, purely to take advantage of the foundry slot that we've had.

Speaker #4: Yeah .

Speaker #3: Thanks very much for the question , Ralph . Rudy , do you want to take that one ?

Speaker #4: Yeah . No problem . Hi , Ralph . The the final repairs to Baumohl two , as are established with the OEM and ourselves , will take place in the first half of 2027 .

Speaker #4: Now , we have ordered a an additional end . Can and discharge upgraded discharge and purely to make take advantage of the foundry slot that we've had and we've effectively run with one strategic spare bomber , one is getting a principally because it's from the same and no vendor reason is other currently performing well .

Ralph Profiti: Mm-hmm.

Rudi Badenhorst: We've effectively run with one strategic spare. Ball Mill 1 is getting a review principally because it's from the same vendor and no other reason. It, that is, currently performing well, and we do not have any issues with it.

Ralph Profiti: I see. And it looks as though that, there's gonna be some degree of-

Speaker #4: And we do not have any issues with it.

Speaker #6: I see . And it looks as though that there's going to be some degree of throttle back on the but throughput , also really some of your comments in your comments pre-prepared talked about increasing total throughput as well .

[Analyst]: ... throttle back on the throughput. But also, Rudi, some of your comments in your pre-prepared comments talked about increasing total throughput as well. Just wondering how you're balancing the two between, you know, risk mitigation and desire to increase throughput.

Speaker #6: Just wondering how you balancing the two between , you know , risk mitigation and desire increase to throughput .

Tristan Pascall: Rudy?

Rudi Badenhorst: Yes. Thanks, Justin. Now, if we indicated that we will be doing a couple of projects at Sentinel this year, primarily to debottleneck the back end of the circuit, and that those relate to the installation of upgraded feed wells to our tailings thickeners, but also the installation of a new tailings line and the reline of an existing one. Effectively, what that does, it helps us to increase throughput through the back end, which is currently the bottleneck. So the first one of those have already been replaced in January. The second one will be replaced this quarter, and the third one during the end of the second quarter, followed by the tailings line in Q3.

Speaker #3: Rudy .

Speaker #4: Yes . Thanks , Justin . If we . Indicated that we will be doing a couple of projects at Sentinel this year , primarily to do bottleneck the back end of the circuit and that those relate to the installation of upgraded feed wells to our tailings thickeners , but also the installation of a new tailings line and realign an of existing one , effectively , what that does , it helps us to increase throughput through the back end , which is currently the bottleneck .

Speaker #4: So in the first one of those have already been replaced in January . The second one will be will be replaced . This quarter .

Rudi Badenhorst: So debottlenecking the circuit allows for the opportunity to increase throughput, albeit maintenance stoppages on Ball Mill 2.

Speaker #4: And the third during the one end of the second quarter, followed by the tailings lines at Q3. So, debottlenecking the circuit allows for the opportunity to increase throughput, albeit maintenance stoppages on Bonita To.

Operator: Your next question is from Orest Wowkodaw with Scotiabank.

Orest Wowkodaw: Hi, good morning. A couple of questions on Cobre Panamá, please. You mentioned, Tristan, that the company's yet to start formal discussions on a new agreement in Panamá. Can you give us an idea of what the hurdles are? Are you just basically waiting for the completion of the environmental audit? Is that expected to kick the process off?

Speaker #1: Your next question is from Orris Wolcott with Scotia Bank .

Speaker #7: Hi . Good morning . A couple of questions on Cobre Panama , please . You mentioned , Tristan , that the company's yet to start formal discussions on a new agreement in Panama .

Speaker #7: Can you give us an idea of what the it hurdles are ? are you of Is just basically the waiting for completion of the environmental audit ?

Tristan Pascall: Hi, Orest. Thanks. I think in Panama, over the last, since the middle of last year, you've seen concrete milestones passing, and that, you know, revolves around approval of the preservation site management plan, export of the concentrate, the restart of the power plant, and the commencement of the environmental audits, and then most recently, the announcement by the president that the government will approve the removal of the stockpiles and processing associated with that. Looking forward, the president has made announcements around dealing with the matters at Cobre Panama, and I think, as you point out, the environmental audit is one of the key elements in that timetable. So we do expect the audit will be completed in April.

Speaker #7: Is that expected to kick the process off ?

Speaker #3: Hai , Orris . Thanks . I think in Panama over the since the middle of last year , you've seen concrete milestones passing and that revolves around approval of the preservation , safe management plan , export of the concentrate , the restart of the power plant and the commencement of the environmental audit .

Speaker #3: And then most recently , the announcement by the president that the government will removal of the stockpiles and and the processing associated with that .

Speaker #3: Looking forward , the the president has made announcements around dealing with the matters at Panama . And I think , as you point out , the environmental audit is one of the key elements in that timetable .

Tristan Pascall: We'll have to assess the next steps and timing from there, but certainly that does seem to be one of the key elements in terms of the pathway from here.

Speaker #3: So we do expect the audit will completed in assess . the next April be We'll have to steps and timing from there . But certainly that does seem to be one of the key elements in terms of the pathway from here .

Orest Wowkodaw: Okay. Thank you. And as a follow-up, thank you for the disclosure around some of the partial restart costs here to turn on one mill train to process these ore stockpiles, the $230 to 280 million range. I'm just curious, is that a good rule of thumb in terms of incremental costs to eventually restart all the mill trains?

Speaker #7: Okay . Thank you . And as a follow up , thank you for the disclosure around some of the partial restart costs here to turn on one mill train to process these ore stockpiles .

Speaker #7: The 230 to 280 million range . I'm just curious , is that a good rule of thumb in terms of incremental costs to to eventually restart all the mill trains ?

Tristan Pascall: Yeah, Orest, it's a little bit of a moving target at the moment because, you know, you can, you can paint different scenarios to restart around the timing and ramp up of that in terms of stage of approvals. But if we, if we follow a pathway. Well, if we just look at the stockpiles and the restart of the plant is important to that stockpile reprocessing, that allows us to remove that material, which does cause some Acid Rock Drainage and will greatly improve our water quality control at Sediment Pond 2, and the discharge in the Botija side, and also in terms of feed to the tailings dam and being able to cope with, you know, high rainfall, and erosion and so on, that we do get on the tailings dam.

Speaker #3: Yeah . It's a little bit of a moving target at the moment because , you know , you can you can paint different scenarios to restart around the timing and ramp up of that .

Speaker #3: In terms of stage of approvals . But if we if we follow a pathway , well , if we just look at the stockpiles and the restart of the the plant is important to that stockpile reprocessing that allows us to remove that is material , which does cause some acid rock and will drainage greatly improve our water quality control at sediment .

Speaker #3: Sediment pond two and the discharge in the patika side , and also in terms of feed to the tailings dam and being able to cope with , you high rainfall and and erosion and so on , that we do get on the tailings dam .

Tristan Pascall: If we just look at that, you know, it's probably 3 months to get that moving, and it would be on the basis of the cost that we outlined there, around $12 to $12.50 per pound, per ton milled, and hence those capital costs that you referred to there. If something else comes through in terms of timetable, and we don't have that, we don't have that clear as yet, you know, that would shift around, disclosure from the government of Panama around that.

Speaker #3: If we just look at that , it's probably three months to get that moving . And it would , it would be on the basis of the cost that we outlined there , around $12 to $12 , 50 per pound per tonne milled .

Speaker #3: And hence those capital costs that you refer to . There . If , if something else comes through in terms of timetable and we don't have that , we don't have that clear as yet .

Operator: Your next question comes from Chris LaFemina with Jefferies.

Speaker #3: You know, that would shift around disclosure from the government of Panama around that.

[Analyst]: Hi. Thanks, operator. Hi, guys. Thanks for taking my question. So I just wanted to ask about the overall unit cost guidance. You, you guys have a lot of operational improvements that you're gonna be delivering across the portfolio over the next couple of years. If I look at Sentinel, for example, where you're, uh, commissioning the rail run conveyor system, you're expanding the trolley assist network, you're expecting slightly higher grades. Volumes across the business are gonna be rising, which should lead to some fixed cost dilution. Yet your unit cost guidance is effectively at the middle of the guidance range. You're, you're basically guiding to costs being flat over the next few years. And I'm wondering, you know, is there, is there potential for cost to be significantly lower than what you're guiding to? Is your guidance conservative?

Speaker #1: Your next question comes from Chris Lamanna with Jefferies

Speaker #8: Thanks . Hi .

Speaker #8: guys . Thanks for Operator . Hi , . taking my question . So I just wanted to ask about the overall unit cost guidance .

Speaker #8: guys . Thanks for Operator . Hi , . taking my question . So I just wanted to ask about the overall unit cost guidance have a You guys lot of operational improvements that you're going to be delivering across the portfolio over the next couple of years .

Speaker #8: If I look at Sentinel , for example , where you're commissioning the railroad conveyor system , you're expanding the trolley assist network , you're expecting slightly higher grades volumes across the business are going to rising , which should lead to some fixed cost dilution .

Speaker #8: Yet your unit cost guidance is effectively at the middle of the guidance range. You're basically guiding cost for the next few years.

[Analyst]: And if not, I'm wondering, what are the offsetting inflationary factors? And you mentioned some of the cost inflation that you're seeing in the business now, but I'm wondering what the inflationary factors are that you're kind of baking into your assumptions here, where those inflationary factors are offsetting the benefits of some of these operational improvements that you guys are expected to deliver. Thank you.

Speaker #8: And I'm wondering , you know , is there is there a potential for cost to be significantly lower than what you're guiding to ?

Speaker #8: guidance conservative ? And if not , I'm wondering what are the offsetting inflationary factors ? I mean , you mentioned some of the cost inflation that you're seeing in the business now .

Speaker #8: But I'm wondering with the inflationary factors you're are that kind of baking into your assumptions here , where those inflationary factors are offsetting the benefits of some of these operational improvements that you guys are expected to you deliver .

Tristan Pascall: Thanks, Chris. Hi, and I'm sure Ryan will add comment, but just, I mean, big picture, the trade-off at Sentinel is between volume, and you're seeing the, the throughput, you're seeing the effort that's been put in there to, in to deliver throughput, and you're seeing that in terms of the front end of the plant and the dry plant pushing there, and as Rudi mentioned, debottlenecking in the back end to, to continue that trend. You know, that is offset by grade and our management of that as we get into, you know, fresh material beneath Stage 3 and, and also open up Stage 4 over the next, year, couple of years, you know, we'll be able to offset that grade, and we'll see good material come through.

Speaker #8: Thank .

Speaker #3: Thanks , Chris . Hi . And I'm sure comment , will add Ryan but just I mean , big picture the trade off at Sentinel is between volume and you're seeing the the throughput .

Speaker #3: You're seeing the effort that's being put in there into into deliver And you're throughput . seeing that in terms of the front end of the plant and the dry plant pushing there , and as Rudy mentioned , Debottlenecking in the back end to to continue that trend , we have had , you know , that is offset grade .

Speaker #3: by And our management of that as we get into fresh material beneath stage three and , and also open up stage four over the next year , couple of years , you know , we'll be able to offset that grade and we'll see .

Tristan Pascall: On the cost side, it's really a story around, you know, commodity inflation, as Ryan pointed out, and labor. But Ryan, do you have anything else to add there?

Speaker #3: Good material come through on the cost side , it's really a story around , you . Commodity inflation , as Ryan pointed out , and labor .

Ryan MacWilliam: Sure. Thanks for the question, Chris. So we do see cost guidance fall, albeit fairly slightly, through the three-year period, from $1.95 to $2.20 for 2026, down to $1.85 to $2.10 in 2028. And in terms of the swings and roundabouts there, as Tristan notes, we will, in 2028, we actually see slightly weaker production from Sentinel due to lower grades that year, which somewhat offsets the fact by that at that stage, we expect to be fully feeding S3 from Southeast Dome, higher grade material. So some positives and negatives on the production side there, and similar on the cost side, where we're seeing strong gold byproduct credits, albeit our gold price guidance is potentially conservative. It's quite a lot below current spot prices.

Speaker #3: But Ryan , do you have anything else to add there ?

Speaker #5: Thanks for the Sure . question , Chris . So we do see cost guidance for , albeit slightly through the three fairly year period from $1.95 to $2 , 20 or 2026 , down to one dollars $0.85 to $2.10 in 2028 , and in terms of the swings and roundabouts , there's Tristan notes .

Speaker #5: We will in 2028 . We actually see slightly weaker production from Sentinel due to lower grades that year , which somewhat offsets the fact by that at that stage , we be expect to fully feeding S3 from south east dome .

Speaker #5: Higher grade materials . So some positives and negatives on the production side , there and similar on the cost side where we're seeing strong gold product product by credits , albeit our gold price guidance is potentially conservative , it's quite a lot below current spot prices .

Ryan MacWilliam: The flip side is we're seeing a stronger kwacha in Zambia as they make continued progress with reforming their economy. The kwacha now sub 20 kwacha to the dollar. That has impacts on our labor costs, and slightly higher contract and maintenance costs through the period. We've also been cautious and fairly conservative in our electricity cost guidance, where we assume through most of the guidance period, that we'll continue to buy power from external sources, and that if we see stronger rainfalls in Zambia, and we move more back to the ZESCO contract as a portion, that will be another cost tailwind through the period relative to what we have in our guidance.

Speaker #5: The flip side is we're seeing a stronger kwacha in Zambia as they make continued progress with reforming their economy. The question now—sub-20 kwacha to the dollar—that has impacts on our labor costs and slightly higher contract and maintenance through the costs period.

Speaker #5: We've also been cautious and fairly conservative in our electricity cost guidance , where we assume through most of the guidance period that will continue to buy power from external sources .

Speaker #5: And if we see stronger rainfalls in Zambia and we move more back to the Zesco contract as a portion , that will be another cost tailwind through the period relative to what we have in our guidance .

Ralph Profiti: That's very helpful. Thank you. Good luck, guys.

Operator: Your next question comes from Cody Hayden with Deutsche Bank. Cody, your line is open.

Speaker #8: very That's helpful . Thank you . Good luck guys .

Speaker #1: Your next question comes from Cody Hayden Deutsche with Bank . Cody , your line is open .

Cody Hayden: Hello, can you hear me? Can you hear me?

Operator: Yes, please go ahead.

Cody Hayden: Great. Thank you, and apologies for that. Two questions from me, if I may. First, considering greenfield projects, and specifically Taca Taca, you kind of alluded to it earlier, but does Cobre Panama need to be up and running before you consider any major new investments here, or say, at any other greenfield projects? And then second, given the ongoing activity in the sector, are you seeing any interest in your assets at the project partnership level, say, beyond the JV with Rio? Thank you.

Speaker #9: Hello . Can you hear me ? Can you hear me ?

Speaker #1: Yes, please go ahead.

Speaker #9: Great . Thank you . And apologies for that . Two questions for me , if I may . First , considering greenfield projects and specifically takataka , you kind of alluded to it earlier , but does Cobra be up and running before you Panama need to consider any investments major new here , or at any other greenfield projects ?

Speaker #9: And then second, given the ongoing activity in the sector, are you seeing any interest in your assets at the project partnership level?

Tristan Pascall: Hi, Cody. Thanks for those questions. Yeah, look, so our progress on Taca Taca this year will be on its own, on the project's own merits. And what I mean by that is, you know, we will pursue the RIGI application. Well, first, as I referenced, we'll be releasing the Taca Taca 43-101 technical report very shortly, this month, we expect, and then that builds a pathway towards RIGI application. And in the meantime, and around that timetable, we'd like to see the ESIA and the water permitting come through. And really, that builds an underlying pathway for a financing to explore financing options. I think Cobre Panama is important to that, but we do need to make progress on those on their own standing.

Speaker #9: Say, beyond the JV with Rio? Thank you.

Speaker #3: Hi , Cody , thanks for those questions . Yeah . Look , so our progress on Takataka this year will be on its own on the project's own merits .

Speaker #3: And what I mean by is , you know , we will pursue the rigor application . Well , first , as I reference , we'll be releasing the takataka , the 43 101 technical report very shortly .

Speaker #3: month . We This expect and then that builds a pathway towards rigor , application . And in the meantime and around that timetable , we'd like to see the Asia and the water permitting , come through .

Speaker #3: And really, that builds an underlying pathway for us to explore financing options. I think Cobre Panama is important to that, but we do need to make progress on those on their own.

Tristan Pascall: The balance sheet and our financial capacity is also important to that, but again, the more, you know, that we're able to progress the project on their own merits, you know, the market does appear strong in terms of supporting that, and we'd like to progress it and see where that gets to. You know, RIGI is a timetable, and we, we, we're anticipating that timetable as well. But balancing all of that through, we have a clear plan, and it revolves around, you know, our execution capability in terms of developing a strong plan, and, and something that meets the expectations of Argentina. And again, while also reflecting the, the stronger investment climate in, in Argentina.

Speaker #3: Standing the balance sheet capacity is also financial important and our to that . But again , the more that we're able to progress the project on the own merits , you know , the market does appear strong in terms of supporting that .

Speaker #3: And we'd like to progress it and see where that gets to . You know , Ricky is a timetable and we we anticipating that timetable as well .

Speaker #3: But balancing all of that through, we have a clear plan, and it revolves around execution capability in terms of developing a strong plan and something that meets the expectations of Argentina.

Tristan Pascall: In terms of interest around the project, around our projects, look, we wouldn't speculate on that too much other than to say, I think that, you know, buy versus build is a strong challenge. And, you know, pipeline, where you have options to be able to develop copper projects in the very near future, and the capacity to do that with the execution capability that is, for example, available at First Quantum, is hard to find. You know, we're taking a team that built Sentinel, that built Cobre Panama, that has just completed S3. They're currently looking at, you know, the maintenance and the preservation of consent ... of Cobre Panama, and all of that lends itself to a capacity to look at something like Taca Taca or indeed, La Granja, in the long term.

Speaker #3: And again . Well , and also reflecting the stronger investment climate in in Argentina in terms of interest around the project , around our projects .

Speaker #3: Look , we wouldn't speculate on that too much other than to say I think that , you know , by versus build is is a strong And , challenge .

Speaker #3: you know , pipeline where you have options to be able to develop Cobra . Copper projects in the very near future . And the capacity to do that with the execution capability , that is , for example , available at first , quantum is hard to find .

Speaker #3: You know , we're taking a team that built Sentinel , that built Cobra Panama that has just completed S3 . They're looking at , you know , the maintenance and the preservation of of of Cobra Panama and all of that lends itself to a capacity to look at something like Takataka or indeed Lagras in the long term .

Tristan Pascall: And that's just not readily available, out there in terms of that execution capability.

Speaker #3: And that's just not readily available out there in terms of the execution capability .

Operator: Your next question comes from Miles Allsop with UBS.

Myles Allsop: Yeah, just a few quick questions. Maybe just a bit of clarity on that last Taca Taca question. What's the best case for FID, if we kind of put Cobre Panama aside, but, you know, in terms of getting RIGI through and then the environmental and water permits? Is best case kind of early 2027, or is it gonna take longer? That's the first question.

Speaker #1: Your next question comes from Myles Allsop with UBS .

Speaker #10: Yeah , just a few quick questions , maybe just a bit of clarity on that last Takataka question . What's the best case case for FID ?

Speaker #10: If put kind of we Cobra Panama aside , but you know , in terms of getting really through and then the environmental and water permits is best case kind of early 2027 , or is to it going take longer .

Tristan Pascall: Thanks, Miles. Look, our main focus is de-risking, but Ryan, do you want to comment further on that?

Speaker #10: That's the first question .

Ryan MacWilliam: Sure. Hi, Miles. I mean, to be clear, before Cobre Panama was placed on P&SMP, our priority focus as a company was on debt reduction. Nothing has changed in that regard. We continue to be focused on debt reduction. It's pleasing that despite Cobre Panama being on P&SMP over the last two years, we've actually made progress in debt reduction, but that continues to be the focus. As Tristan said, pleasing to have a variety of growth options within the portfolio, but those need to come in due course as we focus on deleveraging the balance sheet. Clearly, strong commodity prices help in that respect. Clearly, if Cobre Panama comes back online, that would help.

Speaker #3: Thanks , Mala . Look , our main focus is de-risking . But you want Ryan , do to comment further on that ?

Speaker #5: Sure . Hi , Miles . I mean , to be clear , before Cobre Panama was placed on NZME , our priority focus as a company on debt reduction was on debt reduction .

Speaker #5: Nothing has changed in that regard . So we continue to be focused on debt reduction . It's pleasing that despite Covid , Panama being on Nasm over the last two years , we've actually made progress in debt reduction .

Speaker #5: But that continues to be the focus is , Tristan said , pleasing to have a variety of growth options within the portfolio . But those need to come in due course as we focus on deleveraging .

Ryan MacWilliam: But we're not yet at the point where we're talking to specific timing milestones for approving Taca Taca, 'cause we first need to work through that deleveraging pathway that's ahead of us.

Speaker #5: The balance sheet . Clearly strong commodity prices help in that respect . Clearly , if back Panama comes online , that would help .

Speaker #5: But we're not yet at the point where we're talking to specific timing milestones for approving Takataka , because we first need to work through that deleveraging pathway .

Myles Allsop: Okay. And second question, maybe just related to that as well, around in terms of the balance sheet. I mean, where do you wanna get to? Is it investment grade kind of metrics? Is there a net debt target? Do you kind of think, job done, let's kind of pivot the focus?

Speaker #5: That's ahead of us.

Speaker #10: Okay . And second question , maybe just related to that as well , Ryan , in terms of the balance sheet , I mean , where do you want to get to ?

Speaker #10: Is it investment grade kind of metrics ? Is there a net debt targets ? Are you kind of job think done ? Let's kind of pivot the focus .

Ryan MacWilliam: Yeah. I don't think, Miles, we're ever gonna be complacent on the balance sheet, and I, I don't think I'll ever be job done. What we've talked to is being responsible and prudent in managing the balance sheet. A big part of that is looking to work with others on our project. A good example of that was the partnership at, at La Granja, which, which was referenced in the previous question. So when we do get to these future project goals, we don't put all of that on our balance sheet. We finished last year at 3.3x net debt to EBITDA, and we've generally talked about you wanna be around the, around or below the 1x net debt to EBITDA before you start a next greenfield project build. That being said, at Taca Taca at the moment, the work is really focused around de-risking the project.

Speaker #5: I don't think we're ever going to be complacent on the balance sheet . And I don't think he'll ever be job done . But we've talked to is being responsible and prudent in managing the balance sheet .

Speaker #5: A big part of that is looking to work with others on our project . A good example of that was the partnership at La Granja , which which was referenced in the previous question .

Speaker #5: So when we do get to these future project goals , we don't put all of that on our balance sheet . We finished last year at 3.3 times net debt to EBITDA , and we've generally talked about you want to be around the around or below the one times net debt to EBITDA before you start a next greenfield project , fold .

Ryan MacWilliam: We're focused around bolstering the balance sheet, and we'll make decisions, in due course when that moment comes. But we're not, we're not, we're not there yet, and we don't expect to be there in the near term.

Speaker #5: That being said , at Taka taka , at the moment the work is really focused around de-risking the project . We're focused around bolstering the balance sheet , and we'll make decisions in due course .

Operator: Your next question comes from Marcio Farid with Goldman Sachs.

Speaker #5: When that moment comes . But we're not , we're not we're not there yet and we don't expect to be there in the near term .

Marcio Farid: Thank you. Morning, everyone. Couple follow-ups on my side. Maybe first on Panama. You obviously provided some details around cost and CapEx to start the billing process, which is great. Just wondering if you have an order estimate in terms of total CapEx for a full restart as well, including on the mining side. And if you can comment on how the momentum has been for the use to restart the power plant. Obviously, not as relevant, but just to try and understand the stage of the preservation of equipment. And then maybe secondly, you know, Las Cruces just got sold a few months back.

Speaker #1: Your next question comes from Marcio Ferrett with Goldman Sachs .

Speaker #5: Thank Morning , you . everyone . Top of follow ups on my side . Maybe first on Panama . You obviously provided some details around cost and CapEx to start the billing process .

Speaker #5: Which which is . Just great wondering if you have early estimates in terms of total CapEx for the full restart as well , including the on the mining side , if you and can comment on how the momentum been has for the units to restart plant , the power as obviously not relevant , but try and just to understand the state of the preservation of of equipment and then maybe secondly , you know , last cruise is just got sold a few months back , just wondering if you want to consideration to settle other minor operations as well and to focus on the on the corporations .

Marcio Farid: Just wondering if you wanna, you know, there's consideration to sell other minor operations as well and to focus on the, on the core operations, Zambia, Panama, and eventually Argentina and Peru as well. Thank you.

Tristan Pascall: Hi, Marcio. Thank you for that question. And we'll try and cover all of that. So firstly, on cost to restart for the full, you know, possibility of restarting Panama. Look, I think it's, again, we're following a process in Panama that will be governed by the president and by the government of Panama. It requires transparency and engagement, and that is our focus. The stockpile restart, as we spoke about there, I think there's a good amount of disclosure there to paint that picture. But in terms of restart beyond that, it's really around working capital deployment, and will depend on the condition in the plant. We've been doing a lot of work in that preservation site management to make sure that, you know, areas are in good condition.

Speaker #5: Alexander Panama and eventually Argentina entered as well . Thank you .

Speaker #3: Hi , thank you for that question . And we'll try and cover all of that . So firstly on cost to restart for the full , you possibility of restarting Panama .

Speaker #3: Look I think it's again we're following a process in Panama that will be governed by the president and and by the government of Panama .

Speaker #3: It it requires transparency and engagement . And that is our focus . The stockpile as we restart spoke about there . I think there's a good amount of disclosure there to paint that picture .

Speaker #3: But in terms of restart beyond that , it's really around working capital deployment and will depend on the condition in the plant . We've been doing a lot of work in that preservation , safe management to make sure that , you know , areas are in good condition , but , you know , we haven't been so certainly looked after the big major assets really well , the mills , you know , the major elements rope , shovels and so on .

Tristan Pascall: But, you know, we haven't been, so we've certainly looked after the big major assets really well, the mills, you know, the major elements, rope shovels and so on. But there, there will be work to do on small bore piping, on reticulation pumping, you know, these kind of elements. And so getting to grips with that, you know, is the major area in the plant, and then, working capital of getting suppliers in Panama, reestablished credit terms around their employees, local Panamanians coming to work and so on, is where the major cost, and you know, that's potentially sort of $300 to 500 million in that range. How much of that is borne out in the stockpiles versus a restart down the track will have to come to bear.

Speaker #3: But there will be work to do on small bore piping on , on reticulation pumping . You know , these kind of elements .

Speaker #3: And so getting to grips with that , you know , is the major area in the plant . And then working capital of of getting suppliers in Panama reestablished credit terms around their employees , local Panamanians coming to work and so on , is where the major costs and , you know , that's of potentially sort range .

Speaker #3: 300 to 500 million—in that, how much of that is borne out in the stockpiles versus a restart down the track? We'll have to come to bear in terms of the power plant and its restart.

Tristan Pascall: In terms of the power plant and its restart, it's really been pretty neutral because it's selling power into the grid. But, you know, the fuel cost at the moment is at a higher level, and so generally, it comes out roughly neutral. We haven't seen any huge, large major CapEx in that area. Our main focus was on the boiler and making sure that that was in good condition. It was nitrogen-filled, and there were some areas where we did some work on the soot blowers, erosion on the soot blowers that was present, but that wasn't major in terms of capital work. That's the kind of level of work that went into it.

Speaker #3: It's really been pretty neutral because of the the selling power into the grid . But you know , the fuel costs at the moment is is at a higher level .

Speaker #3: And so, generally, it comes out roughly neutral. We haven't seen any huge, large, major CapEx in that main area. Our focus was on the boiler and making sure that that was in good condition.

Speaker #3: It was nitrogen filled and there were some areas where we did some work on the soot blowers , erosion , on the soot blowers that had was present , but that wasn't major in terms of capital work .

Tristan Pascall: I think by and large, the team's done a fantastic job of looking after that asset, and you see that in terms of the ramp-up that we've seen on unit two, and we're now switching over to unit one. It's already in hot commissioning, as we stated, and we're working through that unit. On Las Cruces and that sale, maybe, Ryan, if, if you take over from there on, on that question around asset sale, asset sales, and other operations.

Speaker #3: But that's the kind of level of work that went into it . by and large , the team has done a fantastic job of looking after that asset , and you see that in terms of the ramp up that we've and unit two , switching seen on we're now unit one , it's already in hot commissioning as we stated , and we're working through that unit on Las Cruces .

Speaker #3: And that sale maybe Ryan , if you take over from there on that question around asset sale , asset sales and other operations .

Ryan MacWilliam: Sure. Hi, Marcio. Yeah, we're pleased to conclude the Las Cruces sale in Q4. Obviously, that had been in the mix for a long time, so to have that completed is pleasing. One, because it further simplifies our portfolio. Two, it removes the $30 million of care and maintenance costs per year that we were bearing. And three, allows that project to be developed under a new owner for the benefit of the team there, for the benefit of Andalusia and Spain more broadly. Beyond that, we're not proactively looking to sell any of our other assets. But of course, when it comes to some of our smaller assets, we'll always assess what makes sense for shareholders. You know, we're pleased that at Guelb Moghrein, we see strong EBITDA driven by the gold price.

Speaker #11: So hi , Marcia . Yeah , we're pleased to conclude the last Cruces sale in Q4 . Obviously , that had been in the mix for a long time .

Speaker #11: So to have that completed is pleasing. One, because it further simplifies our portfolio; two, it removes the $30 million of care and maintenance costs per year that we were bearing.

Speaker #11: And three, allows that project to be developed under a new owner for the benefit of the team. There, for the benefit of Andalusia and Spain more broadly.

Speaker #11: Beyond that , we're not proactively looking to sell any of our other assets , but of course , when it comes to some of our smaller assets , we'll always assess what makes sense for for shareholders .

Ryan MacWilliam: And maybe referencing a question that Chris asked earlier, why we see our cost guidance increase through the next couple of years? Part of that is just because Guelb Moghrein is becoming purely a gold mine. We, therefore, don't get the byproduct credits, as a byproduct, we just get them in as additional revenue. So we don't see it in our C1 numbers, but we certainly see the benefit of Guelb Moghrein in our cash flows. And then lastly, on Çayeli, you know, that's been one of the real success stories in First Quantum over the last 12 months in terms of the extension to the mine life. So we're pleased that both those assets are part of the portfolio, but as other, you know, people externally expressed interest, we'll always make an assessment as to what serves our shareholders best.

Speaker #11: You know , we're pleased that at well , we see price . EBITDA driven by the strong And maybe referencing a question that Chris asked earlier , why PCR cost guidance increased through the next couple of years .

Speaker #11: Part of that is gold is just because becoming purely a gold mine . We therefore don't get the byproduct credits as a byproduct .

Speaker #11: just get them in as additional We revenue . So we don't see it in our C1 numbers . But we certainly see the benefit of our cash flows .

Speaker #11: And then lastly, on Chile, one of the real successes in First Quantum over the last, let's say, 12 months, in stories terms, is the extension to the mine life.

Speaker #11: So we're pleased that both those assets , as part of the portfolio , but as other , you know , people , externally expressed interest will always make an assessment as to what serves our shareholders best .

Operator: Your next question comes from Lawson Winder with Bank of America.

Lawson Winder: Thank you, operator, and hello, Tristan, Rudi, and Ryan. On Taca Taca, you noted that there'll be a feasibility study update in Q1 of this year. So first of all, do we expect that will be filed in Q1, 2026? And then are there any changes to the scope of any aspects of at all of the project that will be part of that updated TR?

Speaker #1: Your next question comes from Lawson Winder with Bank of America.

Speaker #12: Thank you . Operator . And hello , Tristan . Rudy and Ryan on Takataka . You noted that there'll be a feasibility study update in Q1 of this year .

Speaker #12: First of all, so do we expect that will be filed in Q1 2026? And then, are there any changes to the scope of any aspects at all of the project that will be part of that updated TR?

Tristan Pascall: Hi, Lawson. Thanks for the question. Yeah, we. Look, Taca Taca remains a strong project on its own merits, and we're seeing that the investment climate in Argentina is really developing. You know, the reason for the technical report now, and it will be, we expect it later this month, inside Q1, is part of the application for RIGI. And as you point out there, you know, painting a clear picture of the engineering study for what the project can look like. Beyond that, in terms of scope and otherwise, I wouldn't want to steal from that report and the impact of that, but you know, there isn't any major sort of change in scope or otherwise.

Speaker #3: Hi, Lawson, thanks for the question. Yeah, we look at Takataka—it remains a strong project on its own merits, and we're seeing that the investment climate in Argentina is really developing.

Speaker #3: You know , the the reason for the technical report now and it will be we expect it later this month inside Q1 is part of the application for Rigi .

Speaker #3: And as you as you point out , there , you know , painting a clear picture of the engineering study for what the project can look like .

Speaker #3: Beyond that , in terms of scope and otherwise , I wouldn't want to steal from that report impact and the of that . , you know , the But you know , there's isn't major sort any there of change in scope or otherwise .

Tristan Pascall: It remains a robust project that extends on beyond 40 years and with inferred resources, you know, towards 70 years. It continues to be a project that will, in the first 10 years, you know, deliver very strong copper production, and then after 10 years, you know, there's a good reason for expansion at that point in time. So, you know, that is consistent with the previous technical report that put out. This is really an update that gives clarity around capital, around the development pathway, and, you know, paints pretty clearly what is an asset that is one of the, you know, strongest potential projects for copper in the world, in a region now that's attracting a high level of, you know, interest in terms of investment.

Speaker #3: It remains a robust project that extends on beyond 40 years . And with inferred resources towards 70 years . It continues to be a project that will , in the first ten years , you know , deliver very strong copper production .

Speaker #3: And then years , after ten you know , the the there's reason for a good reason for expansion at that point in time .

Speaker #3: So, you know, that is consistent with the previous technical report that we put out. This is really an update that gives clarity around capital, around the development pathway.

Speaker #3: And , you know , paints pretty clearly is an what asset . That is one of the , you know , strongest potential projects for copper in the world , in a region .

Lawson Winder: Fantastic. If I could ask one more question, it would just be on the Kansanshi stream that you guys signed in August. And that's worked really well. It's done a lot to shore up the balance sheet. Now that your debt metrics have improved and are continuing to improve, how do you think about prioritizing the buyback of the 30% interest in that, particularly in light of the higher gold price?

Speaker #3: Now that's attracting a high level of of , you know , interest in , in terms of investment .

Speaker #12: Fantastic . If I could ask one more question , it would just be on the stream that you guys signed in August , and that's worked really well .

Speaker #12: It's done a lot to shore up the balance sheet . Now that your debt metrics have improved and and are continuing to improve , how do you think about prioritizing the buyback of the 30% interest in that , particularly in light of the higher gold price ?

Tristan Pascall: Thanks, Lawson. That's a great question. Ryan, do you want to take that one?

Ryan MacWilliam: Sure. I mean, we liked the stream from a financial perspective when we entered into it, but we also liked it from a structural perspective. The fact that it was equity rather than debt, the fact that the copper price we get paid will increase over time, and most importantly, that there was a buyback option we were able to embed into it. So Lawson, we still have to make more progress on deleveraging. There are leverage thresholds that we have to meet in order to exercise that buyback option. We don't expect to meet those in 2026, but certainly as we come into 2027, we hope to be in a position to exercise initially the 20% buyback and ultimately the second buyback, which is for an incremental 10%.

Speaker #3: Thanks , Lawson . That's a great question . Ryan , do you want to take that one ?

Speaker #11: Sure . I mean , I would we liked the the stream from a financial perspective when we entered into it , but we also liked from a structural the fact perspective , that it's was equity rather than debt .

Speaker #11: The fact that the copper price we get paid will increase over time, and, most importantly, that there was a buyback option.

Speaker #11: We were able to embed into it . So , Lawson , we still have to make more progress on deleveraging . There are leveraged thresholds that we have to meet in order to exercise that option .

Speaker #11: buyback We don't expect to meet those in 2026 , but certainly as we come into 2027 , we hope to be in a position to exercise .

Speaker #11: Initially , the 20% buyback and ultimately the second buyback , which is for an incremental 10% .

Operator: Your next question comes from Anita Soni with CIBC.

Anita Soni: Hi, good morning, Tristan and team. Thanks for taking my question. I just wanted to get a little bit more color on the question Marcio asked, because I was gonna ask that as well. It's so the restart costs for the entire project, I know you don't want to get ahead of yourself, but it sounded like you were saying around $300 to 500 million total. And would that include the $230 to 280 that you just announced, or would that be additional?

Speaker #1: Your next question comes from Anita Soni with CIBC.

Speaker #13: Good Hi . morning , Tristan and team . Thanks for taking my question . I just wanted to get a little bit more color on the question you asked , because I was going to ask that as well .

Speaker #13: It's so the restart costs for the for the entire project . I know you want to get ahead of yourself , but it sounded like you were saying around 300 to $500 million total .

Tristan Pascall: Yeah, Anita, we don't want to get ahead of ourselves. It's important to, you know, follow the pathway outlined by government, and, you know, there is a headline on that in terms of the president announcing that, you know, beyond the environmental audit coming back in April, but we'll have to assess those next steps and the timing from there. And it will require engagement; it requires transparency, and, you know, with a broader population in Panama, that's our prime focus. But in terms of that capital and those indications, yes, the stockpile processing would net off against that. So, the $300 to $500 would include the $250, $280, yeah.

Speaker #13: And would that include the 230 to 280 that you just announced, or would that be additional?

Speaker #3: Yeah . Anita , we don't want to get ahead of ourselves . The it's important to follow the pathway outlined by government . And , you know , there headline that a on in terms of the president announcing that , you know , beyond the the environmental audit coming back in April .

Speaker #3: But we'll have to assess those next steps . And the timing from there . And it will require engagement . It requires transparency .

Speaker #3: And , you know , with a broader population in Panama , that's our prime focus . But in terms of that capital and those indications .

Speaker #3: Yes , the stockpile processing would would net off against that . So the 300 to 500 would include the two 5280 . Yeah .

Anita Soni: ... Okay. And then just a question on the $12 to $12.50 per ton in processing costs. Could you help frame that in dollars per pound? Does that include, you know, your GNA and TCR seeds? And I understand there will be some non-cash component because this ore has already been mined, but I'm just looking for sort of the cash component of what it would be in dollars per pound.

Speaker #13: Okay . And then just a question on the $12 to 1250 per tonne in processing costs . Could you help frame that in dollars per pound .

Speaker #13: Does that include , you know , your DNA and TCR seeds . And I understand there will be some non-cash component because this or has mined .

Speaker #13: been But I'm just thinking for sort of the cash component of what it would be in dollars per pound .

Tristan Pascall: Brian, do you have that to hand? I don't have that to hand.

Ryan MacWilliam: Sure. We expect it to be around $2.90 per pound from a cost unit cost perspective. And what we would expect is, at the moment, we're incurring around $15 to 17 million in PSNM costs at Cobre Panama. Once we receive formal approval for the stockpiles, we would expect to produce around 70,000 tons of copper, and the sales from that will contribute towards the PSNM and other environmental-related activities that are ongoing on site, and we would end the year broadly cash neutral at Cobre Panama.

Speaker #3: Brian , do you have that to hand ? I don't have that to hand .

Speaker #11: Sure . We expect it to be around $2.90 per pound from a cost unit cost perspective . And what we would expect is at the moment , we're incurring around 15 to $17 million in costs at Panama .

Speaker #11: Once we receive formal approval for the stockpiles, we would expect to produce around 70,000 tonnes of copper, and the sales from that would contribute towards the NZME.

Speaker #11: Now , the environmental related activities that are ongoing in sight , and we would end the year broadly cash neutral at Kobe , Panama .

Operator: Your next question comes from Ian Rossouw with Barclays.

Ian Rossouw: Thank you. Just, a follow-up on Cobre Panama, and around the operational readiness and some of the comments you already made at the site visit last year. If you do get approvals to start treating the stockpiles, does that change the operational readiness for the eventual restart? Obviously, I understand these two are two separate processes, but can you actually test switch between the processing trains and ultimately be able to restart the entire plant once that decision comes much quicker than previously expected?

Speaker #1: Your next question comes from Ian Russell with Barclays .

Speaker #14: Thank you . Just a follow up on Panama and around the operational comments some of the already made at the site visit last year .

Speaker #14: If you do get approvals to start treating the stockpiles , does that change the operational readiness for the eventual restart ? Obviously , I these two understand are set to separate processes , but can you actually test switch between the processing trains and ultimately be able to restart the entire plant once that decision comes much quicker than previously expected ?

Tristan Pascall: Yeah. Thanks, Ian. So our focus on the stockpile restart will be environmental, and that is, you know, removing that material, that, you know, does have some Acid Rock Drainage elements, and pushing that through one circuit of the process plants at Cobre Panama. So our focus is around that. We do have the opportunity to cycle through the trains, and I think that's useful in terms of ensuring good preservation and safe management practices. The common areas obviously are needed for one or for three trains, so, you know, that's the cleaner circuit, the columns, the concentrate areas, and so on, are needed for it. And most importantly, the cyclone plant for the tailings facility.

Speaker #3: Yeah . Thanks , Ian . So our focus on the stockpile restart will be environmental . And that is you know , removing that material that you know does have some acid rock drainage elements and pushing that through one circuit of process plant at Cobra Panama .

Speaker #3: So our focus is around that . We do have the opportunity to cycle through the trains . And I think that's useful in terms of ensuring good preservation and safe management practices .

Speaker #3: The areas common obviously are needed for one or for three trains . So , you know , that's the the cleaner circuit , the columns , the concentrate areas and so on are needed for it .

Tristan Pascall: Again, the focus will be environmental, and the cyclone plant gives us the opportunity to produce the sands that are needed at the tailings dam in order to ensure that we can deal with erosion and so on, that's built up over the last two years. So that's the focus. But you know, having the plant in a condition that's able to run on one train solidly and cycle through the trains, I think is you know, overall good in terms of ensuring the ability of the plant to start up well in the event that we get to that.

Speaker #3: And most importantly , the the cyclone plant for the tailings facility . Again , the focus will be environmental and the cyclone plant gives us the opportunity to produce the the sands that are needed at the tailings dam in order to ensure that we can deal with erosion and so on .

Speaker #3: That's built up over the last two years . So that's the focus . But , you know , having the plant's in a condition that's able to run on one train solidly and cycle through the trains , I think is , you know , overall good in terms of ensuring the ability of the plant to start up well in the event that we get to that .

Ian Rossouw: Okay, great. And then just a follow-up on Taca Taca. Just Ryan's comments around the balance sheet, and I guess the priority to gear the balance sheet and your comments around buy versus purchase. Is ultimately the sort of options around funding when you get to that decision, will you look at the balance sheet and decide whether I guess if you funded a loan or you consider a stake sale? Obviously, value will be one option to consider, but do you actually think of the sort of Panama, I'm sorry, Argentina as a sort of from a risk mitigation perspective, it would make sense to sell, or just trying to think how you would think about the funding options at that stage once you get to that?

Speaker #14: Okay , great . And then just a follow up on Tucker , Toca , just Ryan's comments around the balance sheet . And I guess the to priority to gear the balance sheet in your comments around buy versus build just in is ultimately the sort of options around funding .

Speaker #14: When you get to that decision , will you look at the balance sheet and decide whether an I guess a you funded a loan or you consider a stake sale ?

Speaker #14: Obviously value will be one option to consider , but do you actually think of sort of Panama ? I'm sorry , Argentina as a sort of from a risk mitigation perspective .

Speaker #14: Make sense, would it to sell, or just trying to—how do you think you would think about the funding options at that stage, once you get to that?

Tristan Pascall: Yeah. Thanks, Ian. Look, again, the reason to be progressing the technical report is it's part of the RIGI process, and that's important. You know, there's some deadlines around that, and we're conscious of those. You know, it's also underlines the opportunities when we come to looking at funding options. But again, you know, our priority is on Cobre Panama. We spelled that out very clearly in terms of what our focus is this year, and on debt reduction before we would be ready, getting the balance sheet into the right position. In terms of progressing the project on its own merits, so if I put those two elements aside and just look at the project, and to progress it on our- on its own merits, is appropriate.

Speaker #15: Yeah .

Speaker #3: Ian . Look , Thanks , again , the to reason be progressing the technical report is the Rig-i it's part of process . And that's important .

Speaker #3: You know , there's some around that . deadlines And we're conscious of those . You it's know , also underlines the opportunities when we come to looking at funding options .

Speaker #3: But again, you know our priority is on Cobre Panama. And we spelled that out very clearly in terms of what our focus is this year.

Speaker #3: And on debt reduction, before we would be ready, you know, getting the balance sheet into the right position in terms of progressing the project on its own merits.

Tristan Pascall: That is, push forward, lodge the RIGI application, get the 43-101 out, which is the pathway for RIGI application. Look at options around financing, what could be done. The market, you know, is looking at Argentina more, and there's opportunity in that in terms of making progress on that. But again, you know, we have a clear milestones there around the balance sheet and around Cobre Panama, that lead into that. In terms of, you know, broader, you know, opportunities in the business, to make Argentina happy happen, you know, we'll look through, you know, options with partnership. We said that publicly before, but there's a number of tools in the toolkit in terms of, you know, looking at...

Speaker #3: So if I , if I put those two elements aside and just look at the project and progress it on our on its own merits is appropriate , that is pushed forward .

Speaker #3: Lodge the Ricky application , get the 43 101 out , which is the pathway for for reapplication . Look at options around financing .

Speaker #3: What could be done . The market , you know , is looking at Argentina more and there's opportunity in that in terms of making progress on that .

Speaker #3: But again , you know , we have a clear milestones there around the balance sheet and around Cobra Panama that leaned into that in terms of , you know , broader , you know , opportunities in the business to make Argentina happy happen .

Speaker #3: You know , we'll look through options with partnership . We've been we said that publicly before . But there's a number of tools in in the toolkit in terms of , you know , looking at and we've used those , for example , at Kansanshi on , on the Gold Stream , you know , we've , we've been deploying those tools , but really this is about making sure that Takataka on its own merits , begins to stand as a project , which we believe it is , which is really worth looking at .

Tristan Pascall: And we've used those, for example, at Consanti, on the gold stream. You know, we've been deploying those tools, but really this is about making sure that Taca Taca, on its own merit, begins to stand as a project, which we believe it is, which is, you know, really worth looking at. It stands up very well compared to, you know, any of the other projects out there, for copper development in the near future.

Speaker #3: And stands up very well compared to, you know, any of the other projects out there for copper development in the near future?

Operator: Your final question comes from Dalton Baretto with Canaccord Genuity.

Dalton Baretto: Thanks. Morning, guys. Thanks for squeezing me in. A couple of quick ones, if I may. Just first on Cobre Panamá. Tristan, your disclosure referenced support at 75% to 80% in the communities around the mine. Can you perhaps speak to sort of the broader country, particularly in Panama City, just what the, well, what your metrics are showing you and maybe where some of the historical opposition is, the unions, the NGOs, those sorts of things? Thanks.

Speaker #1: Your final question comes from Dalton Barreto with Canaccord Genuity .

Speaker #16: Thanks . Good morning guys . Thanks for squeezing me in a couple of quick ones , if I may . Just first on Cobra Panama , Tristan , your disclosure referenced support at 75 to 80% in the communities around the mine .

Speaker #16: Can you perhaps speak to sort of the broader country , particularly in Panama City , just what the what your metrics are showing you and maybe where some of the historical opposition is suntracs the NGOs , those sorts of things .

Tristan Pascall: Thanks, Dalton. Yeah, so, you know, that's very much a focus of our activities in Panama. You know, broader support for the mine is around 50-55%. That's been steady at that level for some time now, and we see that, you know, key elements of it is really around transparency and engagement as to what the process from here looks like and walking through cleared pathways. What we are seeing is a huge amount of curiosity. So last year, there were some 241,000 engagements, one to one, between, you know, people at Panama, our employees, our advocates, you know, the people that are speaking directly to the community. And in those, what we hear is quite a lot of curiosity about the mine, its place.

Speaker #16: Thanks .

Speaker #3: Thanks , Dalton . Yeah . So , you know , that's a very much a focus of our our activities in Panama . And , you know , broader , you know , support for the mine is is around 50 , 55% .

Speaker #3: That's been steady at that level for some time now . And we see that , you know , a key element of is really around transparency and engagement as to what the process from here looks like .

Speaker #3: And , and walking through clear pathways , what we are seeing is a huge amount of curiosity . So last year there was some 241,000 engagements , 1 to 1 between , you know , people at Panama .

Speaker #3: Our , our employees , our advocates , our , you know , people that are speaking directly to the community . And in those what we hear is , is , is a lot of curiosity about the mine .

Tristan Pascall: You know, we note, for example, discussion in Panama on the interconnector between Panama and Colombia, and that's a big power line, and connection between, really to connect all the way the grid from North America through Mexico and into Costa Rica and Panama for the first time to connect to, you know, across Latin America to South America. You know, that's a huge interconnector for the continent and underlines the impact that electricity can provide in terms of uplifting communities and uplifting standards of living, and provide the opportunity for things like data centers, modern technology, and opportunity, and employment to come through. But of course, interconnectors and electricities require copper. And it's that debate with society around responsibly and in an environmental and with a strong biodiversity program and community programs that's important now in terms of Panama.

Speaker #3: Its place . You know , we note , for example , discussion in Panama on the interconnector between Panama and Colombia . And that's a big power line .

Speaker #3: And connection between really to connect all the way the grid from North America through Mexico and into Costa Rica and Panama for the first time to connect to , you know , across Latin America to South America .

Speaker #3: You know , that's a huge interconnector for the continent . And underlines the impact that electricity can provide in terms of uplifting provide the standards of living opportunity for uplifting , and communities like , modern centers data technology and things and opportunity and employment to come through .

Speaker #3: But, of course, interconnectors and electricity require copper, and it's that debate with society around acting responsibly and in an environmental way, with a strong biodiversity program and community programs.

Tristan Pascall: Again, we're at, you know, probably 50-55% in the broader community. We'd like to see that lift up. And, you know, what we're seeing is a level of curiosity to understand the mine and understand, you know, how Panama can play into what is a global theme.

Speaker #3: That's important . Now in terms of Panama , again , we're probably 50 , 55% in the broader community . We'd like to that see lift up .

Speaker #3: And you know , what we're seeing is a level of curiosity to understand the mine and understand , you know , how Panama can play into what is a global theme .

Operator: There are no further questions at this time. I'll now turn the call back to Mr. Tristan Pascall for any closing remarks.

Speaker #1: There are no further questions at this time . I'll now turn the call back to Mr. Tristan Pascall for any closing remarks .

Tristan Pascall: Thanks, Carly, and thank you everybody for joining the call. We're looking forward to a strong 2026. I hope you have a great day. Thank you.

Speaker #3: Carly, thanks, and thank you, everybody, for joining the call. We're looking forward to a strong 2026. Hope you have a great rest of your day.

Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect.

Speaker #3: Great day. Thank you.