NAMM — Namib Minerals Ordinary Shares

Namib Minerals Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Gold Production: 25,000 ounces, down from 36,743 ounces in 2024.
• Revenue: $82.6 million, slightly down from $85.9 million in 2024, primarily due to lower production volumes.
• Adjusted EBITDA: $29 million, an 18% increase from $24.5 million in the prior year.
• Net Earnings: $101 million, influenced by a $164.5 million change in fair value of earnout liabilities and warrants, offset by $65.4 million in non-recurring listing expenses.
• Operating Cash Flow: $13.5 million before investing activities.
• Average Gold Price: $3,156 per ounce, up 44% from $2,185 per ounce in 2024.
• Operating Costs: Production costs were $37 million, down 4% year-over-year; cash costs rose to approximately $1,653 per ounce due to lower production volume.

2. Strategic Updates and Business Highlights:

• Focus on optimizing operations, increasing production capacity, and expanding resource base.
• Successful resource expansion at How Mine, with exploration revealing greater viable deposits.
• Ongoing expansion of ore milling capacity at How Mine from 40,500 to 55,000 tonnes per month, expected to be commissioned in H2 2026.
• Initiatives in place to improve grade consistency and operational efficiency.
• Leadership transition with Tulani Sikwila becoming CEO, aiming for continuity and further expansion.

3. Forward Guidance and Outlook:

• Production guidance for 2026 is set at 28,000 to 31,500 ounces, with all-in sustaining costs projected between $2,400 and $2,700 per ounce.
• Anticipated adjusted EBITDA for 2026 is between $50 million and $62 million, based on a gold price of $4,500 per ounce.
• Capital requirements for Redwing and Mazowe estimated at $300 million to $400 million, with a disciplined approach to funding to preserve shareholder value.

4. Bad News, Challenges, or Points of Concern:

• Production decline at How Mine due to transitioning between ore bodies, impacting overall output.
• Increased cash costs per ounce due to lower production volumes, although management emphasizes this is a volume issue rather than a cost problem.
• Ongoing geopolitical tensions (e.g., Middle East conflict) could introduce volatility in gold prices, although management remains confident in long-term profitability.
• Decision to let exploration licenses in the DRC lapse, indicating a strategic shift away from certain assets.

5. Notable Q&A Insights:

• Management is closely monitoring geopolitical developments but does not foresee significant immediate impacts on operations.
• Dewatering at Redwing is progressing well, with confidence in meeting timelines.
• Funding for expansion is being approached with caution, prioritizing shareholder value.
• The company remains engaged in the DRC but is focusing on more strategically aligned opportunities.
• Investor relations efforts are ongoing to enhance visibility and maintain stock liquidity, emphasizing that operational execution is key to long-term valuation.

Overall, 2025 was characterized by disciplined progress despite production challenges, with a focus on optimizing existing operations and preparing for future growth.