Financial Data and Key Metrics Changes - For Q2 2025, the company achieved an adjusted EBITDA of $134.2 million and a net profit of $75.3 million, reflecting strong operational execution and market conditions [7][24] - The net asset value at the end of Q2 was approximately $3.3 billion, equating to an NAV of $6.55 per share [9] - The net loan-to-value (LTV) ratio remained unchanged at 24.1%, indicating a balance between reduced vessel market values and further debt reduction [11][29] Business Line Data and Key Metrics Changes - The commercial pool and bunkering operations contributed $7.9 million to overall results, with the Seascale Energy joint venture commencing operations in mid-May [7][24] - The average time charter equivalent (TCE) income for the quarter was $231.2 million, averaging $24,452 per day across vessel segments [26] Market Data and Key Metrics Changes - Clean product volumes transported on sanctioned vessels decreased by 17%, despite an increase in the number of product tankers sanctioned [13] - The company noted a strong recovery in accumulated tonne days for the clean segment, significantly surpassing the three-year average by Q3 [16] - Global refinery margins remain strong, with limited refinery outages projected for the remainder of the year, supporting higher volumes and longer haul trading [18] Company Strategy and Development Direction - The company aims to maintain a transparent and consistent dividend policy, having paid out 82.8% of net profit through dividends and share buybacks in 2024 [11] - Hafnia is focused on sustainability initiatives and aims to provide reliable, efficient, and sustainable solutions through partnerships and smart investments [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market fundamentals, citing limited fleet supply and improved spot rates as drivers for future performance [35] - The company anticipates robust net profits for the full year, with analysts' consensus indicating profits in the range of $300 million to $310 million [31] Other Important Information - The company secured a $750 million revolving credit facility in July, which is expected to reduce overall funding costs and lower cash flow breakeven levels [29][30] - The company has maintained a strong liquidity profile, with over $450 million in liquidity at the end of Q2 [25] Q&A Session Summary Question: Can you quantify the improvement to cash breakeven rates after refinancing? - The refinancing is expected to improve cash flow breakeven to roughly $13,000 per day, reflecting a margin improvement of 50 to 60 basis points [39][40] Question: What is driving the divergence in performance between MRs and LRs? - The LR1s and LR2s have remained resilient, and the improvement in MRs is more about catching up rather than LRs declining [48] Question: How do sanctions impact the market and tonnage availability? - OFAC sanctions are seen as more impactful, but EU and UK sanctions also significantly affect market dynamics, making it challenging to operate sanctioned vessels [56][58] Question: What are the expectations regarding the IMO's net zero framework? - The company believes the IMO will vote through the proposed regulations, despite geopolitical uncertainties [67][68] Question: Will the company consider share buybacks in addition to dividends? - The company maintains a clear dividend policy and will consider share buybacks as an addition to the existing policy [71][74]

Financial Data and Key Metrics Changes - Adjusted net earnings for Q2 2025 were $53 million or $0.26 per share, benefiting from strong metal prices [19] - Consolidated all-in sustaining costs on a byproduct basis in Q2 were $16.52 per ounce, with updated guidance for 2025 now expected to be between $16.50 and $17.50 per ounce [20][21] - Cash flow from operations before working capital and income taxes increased by 22% over the last quarter, totaling $98 million [21] - The cash balance at the end of Q2 was $522 million, resulting in total liquidity of over $920 million [24] Business Line Data and Key Metrics Changes - Mount Milligan produced over 35,000 ounces of gold and 12.4 million pounds of copper in Q2, with updated gold production guidance for 2025 set between 145,000 and 165,000 ounces [13][14] - Aksut's Q2 production was over 28,250 ounces, with reaffirmed 2025 production guidance expected to be higher in the second half of the year [17] - The restart of Thompson Creek is advancing, with approximately 20% of the total capital investment complete [18] Market Data and Key Metrics Changes - The average realized price for gold was $2,793 per ounce and for copper was $3.62 per pound in Q2 [20] - The molybdenum business unit sold approximately 3.1 million pounds at an average realized price of $21.43 per pound [20] Company Strategy and Development Direction - The company is advancing its internal growth strategy with projects like Goldfield, Mount Milligan, and Chemess, all expected to be self-funded from existing liquidity [25][26] - The Goldfield project is expected to enhance near-term gold production and is projected to have an after-tax NPV of $245 million and an IRR of 30% [9][10] - The company is focused on sustainability initiatives, achieving compliance with the International Cyanide Management Code and increasing local procurement spending by 26% year over year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational focus and future performance of Mount Milligan under new leadership [6] - The company anticipates strong free cash flow generation in the second half of 2025, particularly from Oksut [22] - Management highlighted the importance of maintaining financial strength and flexibility while pursuing growth opportunities [26] Other Important Information - The company has implemented a targeted hedging strategy on 50% of gold production for 2029 and 2030, with a price floor of $3,200 per ounce [9] - The company has surpassed its 2026 gender diversity goal, with women representing 38% of the Board and 33% of executive officers [12] Q&A Session Summary Question: Can you provide an update on Mount Milligan's mineralization challenges? - Management confirmed increased density of drilling in the area, leading to improved confidence in future predictions [28] Question: What has changed regarding the Goldfield project since last year? - The company has conducted technical work that improved recovery rates and the favorable gold price has enhanced the project's attractiveness [30] Question: How does the company plan to finance multiple projects? - The company has sufficient liquidity to fund all projects while continuing share buybacks, emphasizing a strong balance sheet [33][60] Question: What is the timeline for Goldfield's first production? - Most permits are in place, with minor amendments needed, and the critical path involves engineering and procurement activities [44][46] Question: How does the updated royalty structure affect Oksut? - The royalty structure has been expanded to account for higher gold prices, with a sliding scale for increases [54] Question: What is the strategic rationale for pursuing Goldfield? - The project offers high IRR and NPV, and the company believes it can balance capital allocation between growth projects and shareholder returns [56][60]