NAMM — Namib Minerals Ordinary Shares

Summary of Namib Minerals Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Gold Production: 25,000 ounces, a decrease from 36,743 ounces in 2024.
• Revenue: $82.6 million, slightly down from $85.9 million in 2024, attributed to higher gold prices offsetting lower production.
• Adjusted EBITDA: $29 million, up 18% from $24.5 million in the prior year.
• Net Earnings: $101 million, significantly impacted by a $164.5 million change in fair value of earnout liabilities and warrants, alongside $65.4 million in non-recurring listing expenses.
• Operating Cash Flow: $13.5 million before investing activities.
• Cost Metrics: All-in sustaining costs were below guidance, with production costs at $37 million, down 4% year-over-year. Cash costs per ounce increased to $1,653 due to lower production volumes.

2. Strategic Updates and Business Highlights

• Operational Focus: Continued emphasis on optimizing operations, increasing production capacity, and expanding resource base, particularly at How Mine.
• Resource Expansion: Significant resource growth at How Mine, with exploration revealing viable deposits.
• Capacity Expansion: A planned 36% increase in ore milling capacity at How Mine, expected to be commissioned in the second half of 2026.
• Redwing Mine Development: Dewatering activities commenced in January 2026, with a structured approach to development in three phases.
• Leadership Changes: Tulani Sikwila assumed the role of CEO, with ongoing recruitment for CFO and COO positions.

3. Forward Guidance and Outlook

• 2026 Production Target: Expected to produce between 28,000 to 31,500 ounces of gold, with all-in sustaining costs projected between $2,400 and $2,700 per ounce.
• Adjusted EBITDA Guidance: Anticipated between $50 million to $62 million, based on a gold price of $4,500 per ounce.
• Capital Requirements: Estimated $300 million to $400 million for Redwing and Mazowe, with a focus on phased funding to minimize dilution.

4. Bad News, Challenges, or Points of Concern

• Production Decline: A significant drop in gold output due to transitioning between ore bodies.
• Market Sensitivity: Potential impacts from geopolitical events, such as conflicts affecting gold prices, although management remains confident in long-term profitability.
• Funding Challenges: While actively seeking funding for expansion, management emphasized a disciplined approach to protect shareholder value, indicating potential delays in securing necessary capital.

5. Notable Q&A Insights

• Impact of Middle East Conflict: Management noted the sensitivity of gold prices to geopolitical events but does not foresee significant operational impacts.
• Dewatering Progress at Redwing: The dewatering process is on track, with 145,000 cubic meters of water removed, indicating positive progress.
• Funding for Expansion: Management is exploring various financing options while prioritizing shareholder value and avoiding rushed decisions.
• DRC Exploration Assets: Decision made to let certain exploration licenses lapse, reflecting a strategic focus on capital allocation.
• Investor Relations Strategy: Emphasis on executing the business plan as the primary means to maintain stock liquidity and attract a broader investor base, alongside ongoing IR efforts.

Overall, Namib Minerals reported a year of disciplined progress despite production challenges, with a strong outlook for 2026 driven by strategic initiatives and favorable gold prices.