Financial Data and Key Metrics Changes - The company reported unaudited group sales revenue of $1,200 million for FY 2025, with an underlying EBITDA of $528 million and a reduction in net debt of $273 million, including $120 million in Q4 alone [9] - The total copper equivalent production for FY 2025 was 152,400 tons, which was only 1% below full year guidance [2][3] - Unit costs at Matza and Matteo were estimated at $78 per ton and $40 per ton respectively for FY 2025, which compared well with previous guidance [5][6] Business Line Data and Key Metrics Changes - At Matza, copper equivalent production reached 25,100 tons in Q4, bringing total production for FY 2025 to 94,100 tons, with an expected 2% increase to approximately 96,000 tons in FY 2026 [3][4] - Matteo achieved record quarterly copper equivalent production of 16,004 tons in Q4, totaling 58,300 tons for FY 2025, reflecting a year-on-year growth of 29% [3][4] Market Data and Key Metrics Changes - The company experienced a 30% increase in sales in Q4, attributed to five cargoes departing Walvis Bay during the period [4] - The strength in the euro to U.S. dollar exchange rate has started to impact costs at Matza, with expectations of further upward pressure if the exchange rate remains strong [5] Company Strategy and Development Direction - The company is focused on building resilience in operations and generating cash while navigating challenges such as record rainfall and power outages [2][8] - A new pre-feasibility study for the Black Butte project is expected to be completed in December, which will help define the optimal pathway for value realization [8] - The company is also enhancing its exploration efforts in the Iberian pyrite and Kalahari copper belt to leverage its operational presence [8] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's ability to deliver results despite significant challenges, emphasizing a commitment to safety and operational excellence [2][9] - The company is optimistic about achieving a robust year in FY 2026, with production guidance reflecting a focus on controllable factors and lower inflation rates compared to the industry [4][5] Other Important Information - The company has implemented a flood recovery program and increased low-grade material feed, which contributed to a $1 per ton increase in unit costs at Matteo [6] - The management highlighted the importance of maintaining a clean concentrate shed and maximizing cash flow through effective inventory management [17][18] Q&A Session Summary Question: Impact of working capital release in H2 FY 2025 - Management noted strong cash flow performance, with significant tonnages sold into favorable markets contributing to cash flow [12][14] Question: Legal settlement at Matteo - The $5 million legal settlement was related to land acquisition matters and was disclosed in the first half accounts [19][20] Question: Zinc grades at Matza - The average zinc grade for Q4 FY 2025 was reported at 4.3%, with expectations of a decrease to 3.5% in FY 2026 [26][28] Question: Resilience planning for weather and power issues - Management discussed extensive planning and improvements made to drainage and water storage to mitigate risks from potential future weather events [60][61] Question: Treatment charges and commercial arrangements - The company is securing lower treatment charges and is focused on maximizing shareholder benefits from current industry dynamics [73][78]
APPRECIATE(SFR) - 2025 Q4 - Earnings Call Transcript