NAMMW — Namib Minerals Warrants

Summary of Namib Minerals Q4 2025 Earnings Call

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, attributed to higher gold prices offsetting lower production.
• Adjusted EBITDA: $29 million, an 18% increase from $24.5 million in the previous year.
• Net Earnings: $101 million, impacted by a $164.5 million change in fair value of earnout liabilities and $65.4 million in non-recurring listing expenses.
• Operating Cash Flow: $13.5 million before investing activities.
• Average Gold Price: $3,156 per ounce, a 44% increase from $2,185 per ounce in 2024.
• All-in Sustaining Costs: Below guidance, with a target for 2026 set between $2,400 and $2,700 per ounce.

2. Strategic Updates and Business Highlights:

• Operational Focus: Continued optimization at How Mine, with initiatives to improve grade consistency and increase throughput.
• Expansion Plans: A 36% increase in ore milling capacity at How Mine is underway, expected to be commissioned in H2 2026.
• Redwing Mine: Dewatering activities commenced in January 2026, with completion expected by late 2026. The project will proceed through structured phases to ensure a sustainable mining operation.
• Leadership Changes: Tulani Sikwila has taken over as CEO, with ongoing searches for a CFO and COO to strengthen the leadership team.

3. Forward Guidance and Outlook:

• 2026 Production Target: Expected to be between 28,000 and 31,500 ounces.
• Adjusted EBITDA Guidance: Projected between $50 million and $62 million based on a gold price of $4,500 per ounce.
• Capital Requirements for Redwing and Mazowe: Estimated between $300 million to $400 million, to be phased over the development program.

4. Challenges and Points of Concern:

• Production Decline: A significant drop in gold output due to transitions between ore bodies and underground development.
• Cost Pressures: While cash costs increased to $1,653 per ounce, this was attributed to lower production volumes rather than rising operational costs.
• Market Sensitivity: The company is closely monitoring geopolitical events, particularly in the Middle East, which could impact gold prices and operational costs, although current exposure is deemed manageable.

5. Notable Q&A Insights:

• Impact of Middle East Conflict: The CEO noted that while the situation is being monitored, it has not materially affected operations or costs.
• Dewatering Progress at Redwing: The dewatering process is on track, with significant water removal achieved, instilling confidence in meeting project timelines.
• Funding for Expansion: The company is exploring financing options with a focus on protecting shareholder value and avoiding dilutive funding.
• DRC Exploration Assets: The decision was made to let certain exploration licenses lapse, reflecting a strategic focus on capital allocation.
• Investor Relations Strategy: Emphasis on executing the business plan to enhance stock liquidity and maintain compliance with market value requirements, alongside an active IR program to boost visibility.

Overall, Namib Minerals demonstrated resilience in 2025, navigating production challenges while positioning itself for growth in 2026 through strategic investments and operational improvements.