Financial Data and Key Metrics Changes - The company reported record shipments for Q2 2025, achieving a production rate of 7 million tonnes, which is up 19% year on year [4] - The net FOB unit revenue increased by approximately 41% to $72 per tonne, contributing to a significant margin improvement [5][6] - The cash balance has built up nicely, with a trade receivables balance of around $25 million as of June 30 [25][36] Business Line Data and Key Metrics Changes - Operational results showed a reasonable performance despite challenges, with a target of 1 to 1.9 million tonnes more volume this year [9] - The company faced channel restrictions due to a tropical storm, impacting shipping capacity and resulting in a loss of approximately 1,400 tonnes per barge [7][8] Market Data and Key Metrics Changes - The bauxite market is structurally positive, with significant volatility observed in alumina pricing, affecting customer profitability [10][12] - Record imports of bauxite into China were noted, with over 100 million tonnes imported in the first half of the year, indicating strong demand [14] - The Guinea government's restrictions on mining leases have increased, now affecting around 70 million tonnes of annualized capacity, leading to potential market volatility [17][18] Company Strategy and Development Direction - The company is focusing on executing its expansion plans and expects to maintain a favorable market position despite anticipated volatility [50] - Exploration activities are set to commence, including greenfield projects and pit extensions, to enhance resource availability [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in cash generation potential and margin improvements, anticipating a reduction in site costs as production rates increase [24][49] - The company is preparing for potential volatility in the bauxite market but believes its cost structure will allow it to weather pricing fluctuations [50][51] Other Important Information - The company has fully paid all deferred royalties, marking a significant milestone [26] - A restructuring of the hedge book on foreign exchange has been completed, improving the company's position relative to current spot rates [27] Q&A Session Summary Question: What caused the drop in shipping costs? - The drop in shipping costs is attributed to long-term contracts signed last year and reduced penalties due to improved contract specifications [32][34] Question: Confirmation of the trade receivables balance? - The trade receivables balance of approximately $25 million as of June 30 is confirmed [36] Question: Are state royalties based on FOB or CIF revenue? - State royalties are based on FOB revenue and will continue for the life of the mine [37] Question: Is there a permanent solution for silt buildup in the river? - The company is exploring options for maintenance and potential dredging programs to address silt buildup, but no immediate solutions are expected [38][46] Question: Expectations for site costs in the next quarter? - A reduction in site costs is anticipated as production rates increase, with expectations to reach mid-25s [49]