Metatek-Group Ltd.

Thank you for standing by. This is the conference operator. Welcome to the Meditek-Group Ltd. Second Quarter Fiscal 2026 Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star and zero. I would now like to turn the conference over to Dennis Fong with Investor Relations. Please go ahead.

Thank you, operator. On the call today are Mark Davis, Meditek's CEO, and Nick Morgan, CFO. Before we begin, Meditek would like to remind listeners that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Meditek's public filings, which are available on CDAR. During the call, we will reference certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see our MD&A for additional information regarding our non-IFRS financial measures, including for reconciliations to the nearest IFRS measures. Please note that unless otherwise stated, all references to any financial figures are in US dollars. And with that, I'll hand the call over to Mark.

Good morning, everyone, and thank you for joining us. This morning I'll provide some colour on the operational activity during the quarter, discuss how recent deployments and contract awards provide visibility towards our schedule for the second half of the year, and then spend a few minutes on our plans to expand capacity and support future growth. Let me start with Nigeria, where we moved our largest contract to date into the execution phase during the quarter. This program comprises more than 210,000 line kilometers of advanced EFTG acquisition, processing, and interpretation, and is expected to be executed in three phases over approximately two years. While mobilization took longer than originally anticipated, as we worked closely with our in-country partners to finalize the operational framework of the contract, Edwin operations commenced late in the second quarter and have now continued into the third quarter. Following completion of the current phase, the EFTG is now mobilizing to undertake two projects in Southeast Asia, one a repeat nation customer before returning to Nigeria for future phases of this multi-year program. More broadly, Nigeria is a good example of how sovereign resource mapping programs develop over time. Clients often begin with an initial survey and then expand coverage as they see the results and gain a better understanding of their resource potential. That is an important part of our model, and it is why repeat customers on multi-phase programs continue to be such a meaningful driver of backlog and long-term visibility. In Q2, we also generated revenue from the sale of additional EFTG data acquired in Angola. where we had previously completed work for a consortium of clients. The transaction illustrates our ability to create value from acquired datasets beyond the initial survey phase. Turning to the DFTG, as we discussed last quarter, the system was deployed to Dubai for its first live customer project earlier this year. From a technical standpoint, the system performed better than expected, but operations were halted due to regional military activity and airspace restrictions. During the second quarter, the aircraft was demobilized from the region and moved to Europe for maintenance. Following that demobilization, we advanced an alternative DFTG project in West Africa to utilize available capacity. While the project ultimately was postponed by the government clients in the final stages of its negotiation, discussions remain ongoing. While these timing issues impacted revenue in the first half of the fiscal year, demand for the DFTG platform remains very high, and we are now back on schedule to deliver the utilization levels we expect through the second half. For Q3, the DFTG is being mobilized through Azerbaijan for airborne data acquisition activities under recently announced contracts with Soca and a Canadian energy company. Those contracts include a follow-on award from SOCA after a successful 2025 test program, as well as additional work for an industry customer operating in Azerbaijan. One thing that becomes increasingly evident over recent months is the growing interest we are seeing from major energy companies alongside our traditional sovereign customer base. Our core focus remains sovereign and government-led resource programs. That remains the largest part of our backlog and pipeline. Governments and national entities continue to invest in understanding and developing their natural resource base, whether from energy security, critical minerals, or broader national resource planning. Those drivers remain firmly intact. Recent awards from commercial energy companies in Azerbaijan and North Africa demonstrate that the expertise we have developed during those sovereign initiatives is increasingly being recognized by our industry customers as well. Over time, this broader mix of sovereign and commercial demand can provide additional flexibility in how we schedule and deploy our systems. Government-led programmes will continue to be at the centre of our business, but industry-led projects can move on different timelines and may help reduce some of the seasonality associated with government, budget and approval cycles. That matters because As we have said before, demand is not the constraint in this business. Capacity and execution are the key constraints. This was reinforced by a recently announced signing of a major contract with the Department of Energy of the Government of the Philippines. As one of Southeast Asia's largest and most geologically prospective countries, the Philippines has significant potential across a broad range of mineral and energy systems. While exploration has been undertaken in many regions, substantial areas have yet to benefit from modern, high-resolution airborne geophysical surveys. Through this program, the DOE will establish an important new geoscience foundation to support future exploration, investment, and resource development. The continued growth in the Dursley Backlog reflects both the expansion of existing customer relationships and the addition of new opportunities across multiple geographies. At the end of the second quarter, adjusted backlog stood at approximately $89 million, up from $77 million at the end of the first quarter. Today, both of our FTG systems are active, with growing backlog on recently awarded contracts across multiple regions, We're entering the second half of 2026 with momentum building across the business, increased visibility into contracted activity, unexpected utilization levels, and a strong schedule for the balance of the year. That visibility supports the full fiscal 2026 guidance we introduced this morning. Supporting that growth while maintaining execution quality is why capacity expansion remains such an important focus for the business. With the proceeds from the IPO, we are actively working with Lockheed Martin to finalize the contract for the provision of our next two EFTG systems, which is expected to be completed shortly. In addition, we expect the refurbishment of our IFTG system for marine applications will be completed by early fiscal 2027. These initiatives should significantly expand our operational capacity at the time when demand across both sovereign and commercial markets continues to build. Today, we are seeing a growing number of opportunities across our pipeline, and in many cases, project time is increasingly being driven by platform availability. The addition of new systems will provide greater flexibility in how we deploy our fleet, support existing customer programs, and pursue new opportunities across multiple geographies. As those systems come online, we believe they will position Metatek to convert a larger portion of its pipeline into backlog, strengthen long-term revenue visibility, and support the next stage of our growth for the business.