Sales timing, waste stripping and Doropo construction
Q: Laura Chan from RBC Capital Markets asked if the difference between production and sales this quarter was purely a timing issue and whether it would catch up in Q4.
A: CEO Chris Eger confirmed it was strictly a timing issue with no constraints, and they expect to catch up by the end of the quarter.
Q: Laura Chan asked how much waste stripping at Syama was deferred into 2026 and what the catch-up requirement is for 2027.
A: CEO Chris Eger stated they originally planned about $30 million of waste stripping for the A21 pit, but they are aligning models for 2027 and do not expect it to reach $30 million next year.
Q: Laura Chan asked about the quarterly CapEx phasing for Doropo through 2027 and the key risks over the next 12 months.
A: CEO Chris Eger noted spending will be consistent at around $300 million next year. COO Gavin Harris added that port congestion at Abidjan has caused a four-week backlog, and water management is being actively derisked.
Q: Laura Chan asked about underlying cost inflation across the business.
A: CEO Chris Eger noted fuel prices increased 30% to 60% earlier in the year but have stabilized, while overall cost profiles are being actively managed to keep AISC flat to down.
Capital allocation and Mali operations
Q: Reg Spencer from Canaccord asked how management sequences the potential development of additional assets like Kilosegui, La Debo, and ABC alongside Doropo.
A: CEO Chris Eger explained that next year's capital focuses on Doropo construction and exploration, while future projects like Kilosegui and ABC would be developed from Doropo's projected cash flows in 2028 and 2029.
Q: Reg Spencer asked for an update on the security situation, transport, equipment, and fuel in Mali.
A: COO Gavin Harris stated that fuel is readily sourced from Cote d'Ivoire, explosives logistics are being solved by the new on-site emulsion plant, and general supply chain and contractor challenges are being managed.
Permitting and project liquidity
Q: Jasper Mainwaring from Berenberg asked if there are any permitting risks or if management is confident in their timelines.
A: CEO Chris Eger expressed high confidence in obtaining fast-tracked permits in Senegal and Cote d'Ivoire due to pro-investment government stances and constructive dialogues.
Q: Regan Burrows from Macquarie asked how the remaining Doropo balance will be funded alongside other capital expenditures.
A: CEO Chris Eger stated that with current gold prices above $4,000, existing cash, operating cash flows, and debt facilities, the business is fully funded through the end of next year.
Q: Regan Burrows asked about potential bottlenecks for the Syama emulsion plant ramp-up.
A: CEO Chris Eger and COO Gavin Harris responded that ancillary products like detonators and cords are being carefully managed, alongside contractor equipment and labor standards.
Debt capacity and Syama grades
Q: Richard Knights from Barrenjoey asked about debt capacity and what gold price drop would trigger reconsideration of debt levels.
A: CEO Chris Eger noted that leverage is currently below half a turn of EBITDA, and while a drop to $3,000 would require review, the company maintains capital-deferral levers and additional financing options.
Q: Richard Knights asked about the grade trajectory and recoveries at Syama over the coming quarters.
A: COO Gavin Harris stated that grades are expected to return toward reserve grades and recoveries are targeted to approach 80% as mill optimization and A21 sulphide mining advance.
