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, supported by a higher average gold price.
• Average Gold Price: $3,156 per ounce, up 44% from $2,185 per ounce in 2024.
• Adjusted EBITDA: $29 million, an 18% increase from $24.5 million in 2024.
• Net Earnings: $101 million, influenced by a $164.5 million change in fair value of earnout liabilities and warrants, and $65.4 million in non-recurring listing expenses.
• Operating Cash Flow: $13.5 million before investing activities.
• All-in Sustaining Cost: Below guidance, with cash costs rising to approximately $1,653 per ounce 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.
• How Mine: Successful resource expansion with improved ore body viability; ongoing initiatives to enhance grade consistency and operational efficiency.
• Redwing Mine: Dewatering activities commenced, expected to complete by late 2026, followed by exploration and feasibility studies.
• Leadership Changes: Tulani Sikwila appointed CEO; new VP of Technical Services added to strengthen operational capabilities.
• Capital Allocation: Focus on optimizing existing production, funding high-return growth initiatives, and maintaining balance sheet flexibility.

3. Forward Guidance and Outlook

• 2026 Production Target: 28,000 to 31,500 ounces, with all-in sustaining costs projected between $2,400 and $2,700 per ounce based on a gold price of $4,500 per ounce.
• Expansion Plans: Ore milling capacity at How Mine to increase from 40,500 to 55,000 tonnes per month, with commissioning expected in the second half of 2026.
• Funding Strategy: Seeking non-dilutive or minimally dilutive funding solutions for the Redwing and Mazowe projects, with an estimated capital requirement of $300 million to $400 million phased over the development program.

4. Bad News, Challenges, or Points of Concern

• Production Decline: Significant drop in gold output due to transitioning between ore bodies, impacting overall revenue despite favorable gold prices.
• Cost Pressures: Increased cash costs per ounce due to lower production volumes, although management views this as a volume issue rather than a cost problem.
• Market Sensitivity: Ongoing geopolitical tensions, particularly in the Middle East, could affect gold prices and operational costs, although current impacts are deemed manageable.

5. Notable Q&A Insights

• Impact of Geopolitical Events: Management is monitoring the situation closely but does not foresee significant immediate impacts on operations.
• Dewatering Progress: The dewatering at Redwing is on track, with 145,000 cubic meters of water pumped and a positive outlook on meeting targets.
• Funding for Expansion: Management is actively exploring financing options but emphasizes a disciplined approach to protect shareholder value.
• Exploration in DRC: Decision made to let certain exploration licenses lapse, focusing on capital allocation efficiency while still considering future opportunities in the region.
• Investor Relations Strategy: Maintaining stock liquidity and market value through operational execution and visibility efforts, rather than relying solely on IR initiatives.

Overall, Namib Minerals demonstrated resilience in a challenging production environment, with a strong focus on strategic growth and operational optimization while navigating potential market headwinds.