Endeavour Mining plc

Good day and thank you for standing by. Welcome to Endeavors Mining's second quarter 2025 results webcast. At this time, all participants are in the listen-only mode. After management's presentation, there will be a question and answer session. So for those who wish to ask a question, please dial in to the phone line. Please note that due to time constraints, we will be prioritizing questions from the covering analysts. Today's conference call is being recorded and a transcript of the call will be available on Endeavor's website tomorrow. I would now like to hand the call over to Endeavor's Vice President of Investor Relations, Jack Garman. Please go ahead, sir.

Hello, everyone, and welcome to Endeavor's second quarter and half-year 2025 results webcast. Before we start, please note our usual disclaimer. On the call today, I'm delighted to be joined by Ian Cockrell, Chief Executive Officer, Guy Young, Chief Financial Officer, and Jaria Traore, Executive Vice President of Operations and ESG. Today's call will follow our usual format. Ian will first go through the highlights, Guy will present the financials, and Jaria will walk you through our operating results by mine, before handing back to Ian for his closing remarks. We'll then open the line up for questions. With that, I will now hand over to Ian.

Thank you, Jack, and hello to everyone who's on the call today. I'm very proud to say that as previously guided, we've delivered another good quarter to cap off the strong first half firmly underpinned by a sound safety performance. In H1 this year, we produced 647,000 ounces of gold at an average all-in sustaining cost of $1,281 per ounce, which firmly places us on track to achieve our full-year guidance. And I think to put that production in context, on a like-for-like basis year-on-year, so in other words, excluding the influence of Lafayette's production, this year's H1 production is a 16% improvement in throughput year-on-year. Our organic growth pipeline continues to advance and our tier one after food projects definitive feasibility study remains on track for completion by early 26. at the same time we're making good progress with the environmental and exploitation permits as well our exploration program is advancing several exciting greenfield and brownfields opportunities across the portfolio including at itty where the itty train continues to deliver new greenfields discovery, and, pleasingly, at Sabadal Masawa, where we are delineating a high-grade near-mine opportunity to support our mine plan. On the financial side, we have continued to increase free cash flow generation, delivering $514 million of free cash flow in H1, and that's equivalent to $794 for every ounce that we've produced. This improved free cash flow generation has allowed us to maintain a healthy balance sheet and as previously guided, despite paying approximately 70% of our 2025 tax bill in the first half of this year. Our leverage is also well below our 0.5 times target and positions us comfortably for future growth and enhanced shareholder returns. We've announced a record first half dividend of $150 million that we supplemented with $69 million of share buybacks. That's bringing total shareholder return for the first half of 2025 to $219 million. On an annualized basis, that's approximately 95% above our minimum commitment and the equivalent to a return of $338 per ounce of gold produced in H1. And I think this reiterates our commitment to delivering sector-leading returns to our shoulders. So as you can see, we've carried the strong momentum that we've been building since the completion of our growth phase through the second quarter and rounding off a strong first half of the year. On the next slide, you can see our performance so far this year. We've maintained a low lost time injury frequency rate significantly below the industry average and we continue to strive for zero harm. Operationally, we do it as 58% of the lower end of our production guidance range during the first half and that positions us well to achieve full year production guidance with slightly lower production expected in the second half due to rainy seasons in Q3 and planned mind lower grades at both ITTI as well as at Hyundai. Importantly, in the first half of the year, we maintained a low all-in sustaining cost of $1,281 per ounce, close to the midpoint of our full-year guidance range. And that's despite the impact of higher gold prices and their influence on royalty costs. In fact, the increased royalty costs was approximately $96 per ounce additional over our budgeted cost in the first half. On slide A, our higher first half production was coupled with a significant 31% increase in our all-in sustaining margin, which reflects our cost discipline in this higher gold price environment. The improvement in both our production and margins is a result of the successful completion of our growth phase in early H2 2024. And with our larger higher margin portfolio, we're well positioned to take advantage of the favorable gold price environment going forward. On slide nine, you can see our all-in sustaining costs compared to our sector peers, and we remain in the first cost quartile. Over the longer term, while we expect to see the industry all-in sustaining costs increase, we will continue to focus on productivity initiatives and the discovery and development of our low-cost pipeline projects to help offset any potential cost increases. On slide 10, a stronger first-half production and our cost discipline, coupled with a strong goal price, translated into a 35% increase in adjusted EBITDA to nearly $1.2 billion, compared to the second half of 2024. Our adjusted EBITDA margin also increased by five percentage points to a very healthy 57%. Importantly, our improved production and earnings is also translating into stronger free cash flow, as you can see on slide 11. For the first half of the year, we generated over half a billion dollars of free cash flow, a 41% increase on H2-24 and a significant improvement on H1-24 when we were still in that construction phase and generating negative free cash flow. On a per ounce basis, our H1-25 free cash flow is equivalent to $794 of free cash flow generated for every ounce of gold produced, highlighting the quality of the underlying portfolio and our ability to convert operational performance into free cash flow at a healthy margin. And that's particularly impressive because during the first half of the year, as previously guided, we've also paid approximately 70% of our expected 2025 cash taxes. With a robust second half operational performance, coupled with even higher gold prices at the start of the third quarter, we expect continued strong free cash flows going forward, This chart here really illustrates our transition from a growth phase in the third quarter of 24 to a period focus on cash flow harvesting. Over the last 12 months since completing that growth phase, we've now generated $879 million in free cash flow, equivalent to $687 of free cash flow for every ounce of gold that we've produced. That's a very attractive free cash flow yield of 17%. from the start of the period, and as we look forward, a robust operating outlook with cost discipline should underpin continued strong free cash flow generation. On slide 12, the strong free cash flow generation has allowed us to strengthen our balance sheet and reduce our leverage to 0.23 times net debt to adjusted EBITDA, significantly below our target of 0.5 times very quickly. Our net debt ended the period at $469 million, a significant improvement on our year-end debt at $732 million. That's despite our big shell return payments, coupled with seasonally high taxes that have also been paid. We were pleased to materially strengthen and extend the maturity profile of our capital structure during this period through the successful bond refinancing, which we completed in May. and a subsequent repayment of the majority of our higher-cost RCF, which Guy will speak to shortly. On slide 13, given our strong free cash flow, which is a way to deleverage our financial position, we have continued to prioritise shareholder returns. I'm delighted to announce... our record first half dividend of $150 million in cash, which we supplemented with a further $69 million of share buybacks, bringing total show returns for the first half of the year to $219 million. And just putting that in context, that's approximately 11% of our revenue, 29% of our operating cash flow, or 43% of our free cash flow. For the first half, we generated $794 per ounce of free cash flow and returned $338 per ounce to shareholders, reflecting our commitment again to delivering enhanced shareholder returns in these higher gold price environments. Our first half shareholder returns brings total returns over the last four and a half years to $1.4 billion. and that's 81% above our minimum commitment for that period. And that reflects our commitment to supplemental returns through phase of growth and cash flow harvesting, reiterating the high quality of our business and highlighting our ability to continue delivering sector-leading returns to shareholders, even through phases of growth. And on an annualized basis, our first half returns of $219 million is approximately 95% higher than our minimum shelter returns commitment for the year of $225 million. Again, highlighting our commitment to supplemental returns that continues to increase given our strong operational performance. Moving on to organic growth on slide 15, I think nothing better exemplifies Endeavor's ability to create value through the drill bit than the Asafoet Project in Cote d'Ivoire. which continues to advance on schedule towards its DFS completion by early 2026. In H125, we continued to advance the project. We completed over 20,000 meters of drilling, largely focused on infill, confirming and increasing our confidence in the reserve model for the early part of the mine plan. Now that we've completed this program, we can prioritize exploration principally at Asafo and Parlour Trend's two and three satellite targets within a kilometre of the Asafo main pit, where we expect to have a resource update later this year. The project is advancing to plan. We've appointed the engineering contractor, the same team who we've successfully worked with on our last five construction projects, who will be led by a best-in-class in-house construction supervisory team. The permitting process also continues to advance as anticipated, with the environmental permit approval expected in the second half of this year and the exploitation permits expected early next year at the latest. All in all, ASAPU remains on track to become a genuine Tier 1 asset in our portfolio and a key pillar of our next phase of growth, offering robust economics, strong exploration upside, and a straightforward proven CIL flow sheet design very similar to that which we already have in place at Lafayette. On slide 16, we've continued to advance our long-term organic growth pipeline through exploration, increasing our full-year guidance by $10 million to $85 million. driven by accelerated drilling programs at both Iti and Sabadala, and significant progress at Asafo as well as Hyundai. At Sabadala and Asawa, drilling is focused on high-grade, near-mine, non-refractory targets to support the ongoing technical review. Following the successes at Kiesta C and Sukutu, which are now in this year's mine plant, we've had success at the Makarna target, where results have outlined a potentially large-scale, high-grade deposit located within 22 kilometers of the CRL processing plant. Exploration in Iti is focused on the Iti trend, where drilling has identified several highly prospective, high-grade greenfield targets, and a follow-up program to test the scale of these targets is scheduled for later this year. Finally, at one day, the high-grade vindaloo deeps deposit is beginning to take shape. Drilling continues to highlight the potential for a large, high-grade underground deposit. Drilling is going to continue in the second half of the year to further delineate mineralization and with an updated resource expected in early 2026. Before I hand over to Guy, I'd just like to briefly touch on ESG. following the recent publication of our annual tax and economic contribution report. As the largest gold producer and a major employer in the region, we're a key contributor to the economic prosperity of our host countries. Last year, this amounted to a total economic contribution of $2.2 billion to our host countries through the transparent payment of taxes, royalties, salaries, and increasingly importantly, in-country procurement, Our economic contribution, although critically important, is just one aspect of the meaningful value that we deliver from the gold that we produce. Transparency and traceability of responsibly sourced gold is equally important to ensure everyone benefits from the metal we mine, from jewelers, downstream users, and investors, to ultimately our impacted communities. Single Mine Origin, or more commonly known as SMO, is just one such initiative, and they recently launched the SMO Foundation to fund a variety of projects in social equity, healthcare access, and environmental conservation. We're proud to be partnering with them on improving healthcare at Sabadala Masala and supporting the protection of the Thai National Park, the jewel of West Africa, in Cote d'Ivoire. We're also proud to partner with the World Gold Council on their Gold The Journey Continues series. The latest episode, which was launched a few weeks ago, actually features our most recent mine, Le Figuet. And this documentary series is storytelling at its best for the industry. Authentic, honest accounts of how mining can positively impact the lives of host communities, open up economic opportunities to transform lives for better. I believe a very, very necessary counterbalance to often the unduly negative press that we get in our industry. And with that, let me pass you over to Guy, who's going to take you through the financial results. Guy, over to you.