Financial Data and Key Metrics Changes - For the full year 2025, total revenue was $84.3 million, consisting of $72.2 million in U.S. net product revenue, $9.7 million from collaboration agreements, and $2.4 million in supply revenue from international partners [19][20] - R&D expenses were $13.2 million, while SG&A expenses reached $230.1 million, reflecting significant investment in commercialization efforts [20][21] - The company ended 2025 with a cash balance of $245 million, providing a strong financial position for ongoing commercial expansion [22] Business Line Data and Key Metrics Changes - The neffy product generated $72.2 million in net product revenue during its first full year of commercial sales, indicating strong market penetration [3][19] - Approximately 93% of commercial coverage was achieved by year-end 2025, with 57% of covered lives having access without prior authorization [8][12] Market Data and Key Metrics Changes - The company reported that 90% of patients experiencing anaphylaxis are effectively treated with a single dose of neffy, supporting its profile as a reliable treatment [3] - Aided awareness of neffy increased from approximately 20% pre-campaign to 60% by year-end 2025, indicating successful direct-to-consumer marketing efforts [14] Company Strategy and Development Direction - The company plans to expand its sales force from 106 to 150 representatives in 2026, funded through reallocating existing resources rather than increasing overall SG&A expenses [6][21] - The focus for 2026 will be on access, adoption, and advancement, with efforts to reduce administrative barriers and improve workflow integration for prescribers [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the neffy product's potential, emphasizing the need for continued education and engagement with healthcare providers [4][24] - The company anticipates that as the installed patient base matures, renewal contributions will become increasingly relevant starting in late 2026 [8][18] Other Important Information - The company is advancing its pipeline for chronic spontaneous urticaria, with interim data expected in the second half of 2026 [9] - The gross-to-net retention rate was in the low to mid 50% range, with expectations for greater predictability in revenue modeling as coverage broadens [22] Q&A Session Summary Question: How are you thinking about inventory dynamics in 1Q and into 2Q? - Management indicated they are comfortable with current inventory levels and will monitor closely as the back-to-school season approaches [26][27] Question: How are you looking at the direct-to-consumer spend in 2026? - The company expects direct-to-consumer spending in 2026 to be similar to 2025, around $100 million [30] Question: Can you provide more color on the contribution from the Get neffy program? - Currently, over 10% of prescriptions are coming through the Get neffy program, which is expected to grow as awareness increases [34] Question: Can you elaborate on the funding for the sales force expansion? - Funding for the sales force expansion will come from reallocating budgets from advertising and market research [45][51] Question: What are you seeing from the direct-to-consumer campaign beyond awareness? - The campaign has shown strong advertisement recall and positive feedback on messaging, indicating it resonates well with consumers [55][56] Question: How should we think about the timing and cadence of refills? - Most prescriptions are currently new, but refill dynamics are expected to pick up significantly by the end of 2026 as initial prescriptions expire [60][64]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue was $106.3 million, an increase of 3% year-over-year, adjusting for Geomagic [32] - For the full year 2025, consolidated revenue was $387 million, a decline of 7% year-over-year when adjusting for the divestiture of Geomagic [35] - Non-GAAP gross margin for the fourth quarter was 31%, up 3% when adjusting for Geomagic, but down 2% when adjusting for both Geomagic and regenerative medicine [36] - Adjusted EBITDA for the fourth quarter was negative $5.3 million, an improvement of $17 million compared to the prior year when adjusting for Geomagic [38] Business Line Data and Key Metrics Changes - Industrial Solutions revenue was $55.8 million, an increase of 15% sequentially, driven by strength in aerospace and defense and higher new printer sales [33] - Healthcare Solutions revenue was $50.5 million, growing 18% sequentially, primarily due to strengthening dental material sales and positive performance in personalized health services [33][34] - Aerospace and defense revenue achieved 16% growth for the full year, with expectations of over 20% growth for 2026 [11][19] Market Data and Key Metrics Changes - The aerospace and defense market is becoming the largest and fastest-growing segment within the industrial solutions business [11] - The healthcare segment, particularly personalized health services, realized double-digit growth in 2025, becoming the largest healthcare segment [20][21] - The dental market is expected to grow significantly due to the introduction of new technologies and products, with a potential annual recurring revenue opportunity of over $400 million globally for materials alone [27] Company Strategy and Development Direction - The company is focusing on key growth initiatives in aerospace and defense, personalized health services, and dental markets, leveraging additive manufacturing for mass customization [10][11][20] - The strategy includes maintaining R&D investments in high-value markets while reducing costs in lower-end applications [19] - A major expansion of the U.S. facility in Littleton, Colorado, is underway to increase application development and production capacity [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges global economic and geopolitical challenges but remains optimistic about returning customer demand and growth in priority markets [5][33] - The company expects continued growth in aerospace and defense, with a strong pipeline of new applications in personalized health services [20][62] - Management is cautious about the consumer-oriented business due to potential volatility in discretionary spending [62] Other Important Information - The company completed the divestiture of its Geomagic software business on April 1, 2025, impacting revenue comparisons [31] - The founder and Chief Technology Officer, Chuck Hull, was recognized as one of America's top 250 greatest innovators by Forbes Magazine [29] Q&A Session Summary Question: How should operating expenses be viewed in Q1 compared to Q4? - Management indicated that Q1 is seasonally higher for operating expenses, with slight increases expected in Q1 and Q2, followed by a drop in Q3 and Q4 [43] Question: What is the current revenue contribution from aerospace and defense? - Aerospace and defense is on track to be the largest industrial segment, with 16% year-over-year growth and significant revenue from both printers and parts [45] Question: What drove the revenue upside in Q4? - The revenue upside was attributed to strong performance in aerospace and defense, healthcare parts, and new printer launches [52] Question: Is there an expectation for gross margin improvement from Q4 to Q1? - Management anticipates gross margin improvement in Q1, driven by operational cost reductions and better pricing [59] Question: How is R&D spending expected to change going forward? - R&D spending is expected to decrease as the company has refreshed its product lines, but it will remain significant to support new product launches [70][74]

Financial Data and Key Metrics Changes - For the full year 2025, total revenue was $84.3 million, consisting of $72.2 million in U.S. net product revenue, $9.7 million from collaboration agreements, and $2.4 million in supply revenue from international partners [19] - R&D expenses were $13.2 million, primarily driven by product development and clinical trials [19] - SG&A expenses were $230.1 million, reflecting significant investment in commercialization efforts [19] Business Line Data and Key Metrics Changes - Neffy generated $72.2 million in net product revenue during its first full year of commercial sales, indicating meaningful physician engagement and patient uptake [3][4] - Over 22,500 healthcare providers prescribed Neffy by year-end 2025, with 50% being repeat writers, indicating continued usage [10] - Approximately 10% of Neffy prescriptions were facilitated through the Get neffy on Us program, which is expected to grow as awareness increases [16] Market Data and Key Metrics Changes - The company ended 2025 with approximately 93% overall commercial coverage, with 57% of covered lives having access without prior authorization [8][12] - Aided awareness of Neffy rose from approximately 20% pre-campaign to 60% by year-end 2025, with 55% of caregivers and patients recalling seeing Neffy advertisements [13][15] Company Strategy and Development Direction - The company plans to expand its sales force from 106 to 150 in Q2 2026, funded through reallocating existing commercial resources without increasing overall SG&A expenses [5][20] - The focus for 2026 will be on access, adoption, and advancement, with an emphasis on reducing administrative barriers and improving workflow integration [6][8] - The company aims to deepen engagement in high-volume practices and build a loyal patient base while maintaining disciplined capital allocation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in 2025, acknowledging the structural dynamics of the market that require time to navigate [25] - The company anticipates that as the installed patient base matures, renewal contributions will become increasingly relevant starting in late 2026 [8] - Management remains focused on steady execution and disciplined investing to achieve a clear path to profitability [22][23] Other Important Information - The gross-to-net retention rate was in the low to mid 50% range, with expectations of greater predictability in revenue modeling as coverage broadens [22] - The company ended 2025 with $245 million in cash equivalents, providing a strong balance sheet for ongoing commercial expansion [22] Q&A Session Summary Question: How are you thinking about inventory dynamics in 1Q and into the 2Q back-to-school ramp? - Management is comfortable with current inventory levels and will monitor closely as the back-to-school season approaches [27] Question: How are you looking at the Direct-to-Consumer spend in 2026? - Direct-to-consumer spend in 2026 is projected to be similar to 2025, around $100 million [31] Question: Can you provide more color on the contribution from the Get neffy program and timing on extending unrestricted access? - Currently, over 10% of prescriptions come through the Get neffy program, which is expected to grow as awareness builds [34][35] - Substantial expansion of coverage is anticipated heading into summer, with ongoing efforts to secure additional Medicaid coverage [40] Question: Can you elaborate on the sales force expansion funding? - Funding for the sales force expansion is coming from reductions in advertising and market research budgets [46][52] Question: What signs are there beyond awareness that the Direct-to-Consumer campaign is having an effect? - There is evidence of increased patient engagement and behavior changes linked to the Direct-to-Consumer campaign, with strong advertisement recall [54][56] Question: How should we think about the timing and cadence of refills and the proportion of new scripts versus refills by year-end? - The majority of prescriptions are currently new, with refill dynamics expected to pick up significantly by the end of 2026 as initial prescriptions expire [60][64]

Financial Data and Key Metrics Changes - As of December 31, 2025, SharpLink held 640,026 ETH with a net fair value of $1.9 billion, and 204,409 LsETH with a cost value of $501 million [24] - Revenue for the year ended December 31, 2025, was $28.1 million, a significant increase from $3.7 million in 2024 [25] - The net loss for the year totaled $734.6 million, primarily due to a $616.2 million unrealized loss and a $140.2 million impairment charge [27][28] - Cash on hand increased to $28.5 million from $1.4 million in 2024 [28] Business Line Data and Key Metrics Changes - Staking revenues increased to $15.3 million in Q4 2025 from $10.3 million in Q3 2025, marking a nearly 50% increase [26] - The company’s institutional shareholder ownership grew to approximately 46% as of December 31, 2025, the highest percentage among Ethereum treasury companies [11] Market Data and Key Metrics Changes - Ethereum secured approximately 60% of all stable coins and tokenized real-world assets, and over two-thirds of total DeFi value [5] - Institutional adoption of Ethereum accelerated significantly in 2025, with major financial firms launching tokenized products on the Ethereum blockchain [6][8] Company Strategy and Development Direction - SharpLink aims to accumulate ETH through disciplined treasury management, focusing on long-term value creation rather than mere growth of holdings [11] - The company is positioned to capitalize on the momentum of institutional adoption and regulatory clarity, aiming to become a bridge between traditional finance and crypto-native deployments [15][23] - The strategy includes active portfolio management and partnerships to enhance ETH-denominated returns while maintaining governance and risk controls [12][17] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of regulatory clarity and institutional participation in the Ethereum ecosystem, which is expected to reduce uncertainty and broaden market engagement [15][16] - The company remains focused on compounding ETH per share through disciplined capital allocation and productive treasury management, despite market volatility [20][21] Other Important Information - The company has updated its branding to reflect its focus on Ethereum and digital asset treasury management, removing the word "gaming" from its corporate identity [22] - SharpLink's treasury management is conducted in-house, which is seen as a structural differentiator compared to competitors that rely on third-party managers [17] Q&A Session Summary Question: Capital raising strategies if stock remains range-bound - Management stated that capital raising will be pursued only if it is accretive to ETH concentration per share, emphasizing a disciplined approach [32] Question: Relationship with Ethereum's technical leadership - Management highlighted that SharpLink has deep expertise in Ethereum protocols and maintains close collaboration with Ethereum Foundation researchers, which provides strategic advantages [36] Question: ETH price correlation with macro flows - Management acknowledged the volatility of ETH and suggested focusing on macro Ethereum adoption as a leading indicator, rather than short-term price movements [42] Question: Yield generation from ETH deployments - Management discussed the disciplined approach to yield generation, emphasizing the importance of risk-adjusted returns and the potential for partnerships to enhance yield strategies [49] Question: Pipeline for yield-generating ETH deployments - Management indicated that due diligence on potential partnerships takes at least two months, focusing on risk controls and operational protections [54]

Financial Data and Key Metrics Changes - Full year 2025 sales and adjusted EPS were in line with the company's outlook despite significant disruptions [4] - Reported sales in Q4 decreased by 4% with comparable sales down 8% [11] - Gross profit for Q4 was $144 million, a decrease of 7%, with a margin rate of 33.6%, down 110 basis points [11] - Adjusted operating income for Q4 was $60 million, with a margin rate of 14%, down 30 basis points [12] - Adjusted free cash flow for the year was $70 million, reflecting a decline due to EBITDA decrease and higher tariff-related cash payments [14] Business Line Data and Key Metrics Changes - In the Americas segment, comparable sales declined by 5%, but adjusted operating income increased to $43 million, with a margin rate improving to 17.7% [12] - The international segment saw comparable sales decline by 12%, impacted by soft demand in Europe, partially offset by growth in Australia [13] - The technology accessories categories showed growth, particularly with the PowerA brand performing well during Q4 [7] Market Data and Key Metrics Changes - The international segment faced challenges from continued weakness in EMEA, with lower demand for traditional business essentials [8] - Brazil's 2025 results were lower than expected due to adverse product mix and market trade down [9] - The company expects improved demand across most categories and geographies in 2026, aided by the EPOS acquisition and favorable foreign exchange [16] Company Strategy and Development Direction - The company is focusing on the growing technology peripherals market, with the EPOS acquisition broadening its portfolio [4] - A multi-year cost reduction program has delivered $35 million in savings in 2025, with a target of $100 million by the end of 2026 [6] - The company aims to build a more focused, efficient, and growth-oriented organization, leveraging operational excellence and a strong financial position [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to navigate external challenges, expecting a better demand environment in 2026 [10] - The company anticipates full year sales growth in 2026, with reported sales expected to be flat to up 3% and adjusted EPS in the range of $0.84-$0.89 [16] - Management highlighted the importance of maintaining expense discipline while managing gross margin impacts from product mix [10] Other Important Information - The EPOS acquisition is expected to generate $15 million in annual cost synergies and is projected to be slightly accretive to EBITDA in the first year [15] - The company returned $42 million to shareholders in 2025 through dividends and share repurchases [14] Q&A Session Summary Question: Can you provide more details on the EPOS acquisition? - The addressable market for EPOS is estimated at $1.7 billion, with a market share of around 5%, indicating significant growth potential [22] Question: What is the outlook for the back-to-school market? - The company expects a return to normal ordering patterns and anticipates strong performance in the back-to-school season based on initial orders [25] Question: Can you discuss revenue synergy potential with EPOS? - The complementary nature of EPOS and Kensington is expected to create growth synergy opportunities, leveraging distribution to amplify growth [30] Question: What are the expectations for gross margin and SG&A expenses in 2026? - The company anticipates modest gross margin expansion due to operational discipline and planned price increases, while SG&A expenses may increase slightly due to incentive payouts [45]

Financial Data and Key Metrics Changes - In fiscal year 2025, the company generated approximately $11.2 million in revenue, representing a 101% year-over-year growth from 2024 [6] - The fourth quarter revenue was approximately $4.9 million, showing a sequential growth of 133% [12] - Gross margins improved from 24% in Q1 to 36% in Q4, with an annual gross margin of 35% for 2025 [12][13] - Operating expenses increased from $18.5 million in 2024 to $29 million in 2025, primarily due to non-cash stock compensation expenses [13][14] - The company ended the year with $103 million in cash, reflecting significant capital raises totaling approximately $157 million [15] Business Line Data and Key Metrics Changes - The revenue attributed to the enterprise segment grew from 31% in Q1 to 81% in Q4, indicating a shift from retail to enterprise customers [7][12] - The company expanded its workforce from 15 employees at the beginning of 2025 to 81 by year-end, and further to over 140 employees currently [9][24] Market Data and Key Metrics Changes - The U.S. drone market for small drones is estimated at $10 billion annually, with a projected $3 billion to $5 billion total addressable market for parts [20] - Legislative actions have created a significant marketplace vacuum for domestic producers, particularly following the FCC ban on foreign-made drones and parts [20][21] Company Strategy and Development Direction - The company aims to become a leader in onshoring the production of drone components, with plans to scale manufacturing capacity significantly [9][17] - Strategic investments in drone companies are part of the plan to drive additional liquidity and partnerships within the industry [16] - The company is focused on meeting the entire U.S. components demand without dependency on specific programs, particularly in light of the Drone Dominance initiative [50] Management's Comments on Operating Environment and Future Outlook - Management views the current drone marketplace as supply constrained, with demand expected to outstrip supply through 2027 [17][18] - The company anticipates operational growth and increased efficiencies as new production lines are installed, particularly for motors and other components [13][25] - The management expressed confidence in capturing a significant portion of the rapidly expanding market due to overwhelming demand for components [27][28] Other Important Information - The company has started production of motors and is scaling operations to meet demand, with expectations to produce 100 headsets per shift per day by April [24][25] - The company is also working on battery pack production and anticipates manufacturing cameras by the end of 2026 [25][26] Q&A Session Summary Question: What is the total backlog number? - The company clarified that the $12 million figure represents outstanding purchase orders they are working to fulfill, not a backlog implying delays [31] Question: How much content per drone are customers buying? - The company noted that very few customers have placed full Drone Dominance orders yet, and the content mix varies significantly [32] Question: Should revenue growth be modeled sequentially throughout 2026? - The company expects sequential growth but acknowledged potential supply chain challenges that could impact revenue [34] Question: What is the status of the automated motor production line? - The company confirmed that capital expenditures have already been made, with expectations to have the line operational by July [39] Question: How do gross margins trend with new investments? - Management indicated that gross margins may fluctuate as new processes are implemented, with the worst margins expected in Q1 and Q2 [41] Question: What does the competitive environment look like? - The company stated that while there are other small competitors, it remains the largest producer in many categories due to the supply-constrained market [44][45] Question: How does the company allocate resources to customers? - The company aims to build relationships and meet the entire U.S. components demand without favoring specific customers [49]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record revenue of $320 million, an increase of $143 million compared to Q3 2025, driven by record copper concentrate sales and a 59% increase in gold doré sales [17] - Adjusted EBITDA grew to $186.7 million in Q4 and $409.7 million for the full year, with adjusted net income attributable to owners of the company at $108.4 million for the quarter and $220.4 million for the year [18] - The liquidity position at the end of Q4 stood at $150.4 million, including $105.4 million in cash and cash equivalents [19] Business Line Data and Key Metrics Changes - At CaraÃba, Q4 represented the strongest operating quarter of the year, with mill throughput reaching nearly 1.2 million tons, up 18% compared to Q3, driving copper production 15% higher quarter-on-quarter [9] - At Tucumã, copper production increased more than 22% quarter-on-quarter, also representing a record for the operation [9] - Xavantina saw a production increase of 53% quarter-on-quarter, driven by higher grades and improved throughput, resulting in nearly 20,000 ounces of gold produced in Q4 [10][11] Market Data and Key Metrics Changes - C1 cash costs per pound for copper were approximately $2.27 at CaraÃba and $1.75 at Tucumã in Q4, with the increase at Tucumã attributed to higher transportation costs and accelerated amortization of mill liners [18] - Gold C1 cash costs per ounce declined by approximately 29% from the third quarter [18] Company Strategy and Development Direction - The company is focused on advancing the Furnas project, which is expected to produce over 1.2 million tons of copper, 2 million ounces of gold, and 9 million ounces of silver over an initial 24-year mine life [5] - Capital spending across existing operations is projected to decline as the company exits a multi-year investment phase, enhancing cash generation capacity [8] - The company plans to complete an additional 50,000 meters of exploration drilling in 2026 to target extensions of high-grade mineralization [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the current market environment, highlighting the strong economic outcomes of the Furnas project [4] - The guidance for 2026 assumes operational performance gains achieved in Q4 will be sustained throughout the year, with consolidated copper production expected to be between 67,500 to 77,500 tons [14] - Management noted that the rainy season in Brazil is expected to impact Q1 production, with a ramp-up anticipated in Q2 and Q3 [26] Other Important Information - The company aims to maintain a strong cash position and target a net debt to EBITDA ratio below 1 times before commencing a return of capital program [20] - The company is advancing its partnership with Vale Base Metals on the Furnas project, which is seen as a cornerstone for long-term growth [22] Q&A Session Summary Question: Guidance on gold concentrate stockpiles at Xavantina - Management indicated that while Q1 is expected to have modest sales due to the rainy season, shipments are anticipated to ramp up aggressively in Q2 and Q3 [26] Question: Update on Tucumã's filter press issue - The filter press has been ordered and is expected to be operational in Q4, but it is not included in the 2026 guidance [32] Question: C1 cash cost guidance for Tucumã - Management explained that the main drivers for cost guidance include lower grades and additional maintenance efforts, which are expected to stabilize operations [45] Question: Benefits from mechanization investments at Xavantina - Management highlighted that mechanization investments aim to reduce workforce exposure and improve alignment between mine output and mill capacity [48] Question: Potential capital return once net debt to EBITDA is below one times - Management outlined that steps include reducing net debt, paying down the revolver, and discussions with shareholders regarding potential returns [51] Question: Timeline for selling down the gold concentrate stockpile - Management confirmed that the timeline for selling the stockpile has been extended to mid-2027 due to operational considerations [57] Question: Exploration spending and projects - The majority of the exploration budget will be allocated to the Furnas project, with additional opportunities being explored at other sites [61]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $320 million, an increase of $143 million compared to the third quarter [17] - Adjusted EBITDA grew to $186.7 million in the fourth quarter and $409.7 million for the full year [18] - Adjusted net income attributable to owners was $108.4 million for the quarter and $220.4 million for the year, translating to $1.04 and $2.12 per share respectively [18] - Liquidity position at quarter end was $150.4 million, including $105.4 million in cash and cash equivalents [19] - Net debt decreased to approximately $502 million at year-end from $545 million at the end of the third quarter, improving the net debt leverage ratio to 1.2x [19] Business Line Data and Key Metrics Changes - At CaraÃba, Q4 mill throughput reached nearly 1.2 million tons, up 18% compared to Q3, driving copper production 15% higher quarter-on-quarter [9] - At Tucumã, copper production increased more than 22% quarter-on-quarter, achieving another record for the operation [9] - Xavantina saw a 53% increase in production quarter-on-quarter, with total gold production from Xavantina reaching nearly 20,000 ounces in Q4 [10][11] Market Data and Key Metrics Changes - C1 cash costs per pound were approximately $2.27 at CaraÃba and $1.75 at Tucumã in Q4, with the increase attributed to transportation costs and accelerated amortization of mill liners [10][17] - Gold C1 cash costs per ounce declined by approximately 29% from the third quarter [18] Company Strategy and Development Direction - The company is focused on advancing the Furnas project, which is expected to produce over 1.2 million tons of copper, 2 million ounces of gold, and 9 million ounces of silver over an initial 24-year mine life [5] - Capital spending across existing operations is projected to decline as the company exits a multi-year investment phase [8] - The company plans to complete an additional 50,000 meters of exploration drilling in 2026 to target extensions of high-grade mineralization [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the current market environment, highlighting the strong economic outcomes of the Furnas project [4][6] - The operational performance gains achieved in Q4 are expected to be sustained through 2026, with guidance reflecting a consolidated copper production of between 67,500 to 77,500 tons [14] - Management acknowledged challenges due to the rainy season impacting production and sales, particularly at Xavantina [26] Other Important Information - The company is advancing a new shaft project at CaraÃba and investing in ventilation circuits at Xavantina to increase mine capacity and output [14] - The company aims to maintain a strong cash position and target a net debt to EBITDA ratio below 1x before commencing a return of capital program [20] Q&A Session Summary Question: Guidance on gold concentrate stockpiles at Xavantina - Management indicated that while Q1 is expected to have modest sales due to the rainy season, shipments should ramp up aggressively in Q2 and Q3 [25][26] Question: Update on Tucumã's filter press issue - The filter press has been ordered and is expected to be operational in Q4, but it is not included in the 2026 guidance [30][32] Question: C1 cash cost guidance for Tucumã - Management explained that costs are influenced by lower grades and additional maintenance efforts, with expectations for higher costs due to transportation and TCRC factors [42][46] Question: Benefits from mechanization investments at Xavantina - Management highlighted that mechanization reduces workforce exposure and aims to better match mine output with mill capacity over time [44][48] Question: Potential capital return once net debt to EBITDA is below one times - Management outlined a three-step approach to capital return, focusing on reducing net debt, paying down the revolver, and engaging with shareholders [51][53] Question: Timeline for selling down the gold concentrate stockpile - Management indicated that the timeline for selling the stockpile may extend to mid-2027 due to operational considerations [57][61]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $320 million, an increase of $143 million compared to the third quarter [18] - Adjusted EBITDA grew to $186.7 million in the fourth quarter and $409.7 million for the full year [19] - Adjusted net income attributable to owners was $108.4 million for the quarter and $220.4 million for the year, translating to $1.04 and $2.12 per share respectively [19] - Liquidity position at quarter end was $150.4 million, including $105.4 million in cash and cash equivalents [20] - Net debt declined to approximately $502 million at year-end from $545 million at the end of the third quarter, improving the net debt leverage ratio to 1.2 times [20] Business Line Data and Key Metrics Changes - At CaraÃba, Q4 mill throughput reached nearly 1.2 million tons, up 18% compared to Q3, driving copper production 15% higher quarter-on-quarter [10] - At Tucumã, copper production increased more than 22% quarter-on-quarter, achieving another record for the operation [10] - Xavantina saw a production increase of 53% quarter-on-quarter, driven by higher grades and improved throughput [11] - Total gold from Xavantina was nearly 20,000 ounces in Q4 and over 50,000 ounces for the full year [12] Market Data and Key Metrics Changes - The company experienced stronger copper and gold prices during the period, contributing to record revenue [18] - C1 cash costs per pound were approximately 1.5% higher quarter-on-quarter, primarily due to increased transportation costs at Tucumã [19] - Gold C1 cash costs per ounce declined by approximately 29% from the third quarter [19] Company Strategy and Development Direction - The company is focused on advancing the Furnas project, which is expected to produce over 1.2 million tons of copper, 2 million ounces of gold, and 9 million ounces of silver over an initial 24-year mine life [5] - The capital required to advance Furnas is expected to remain relatively modest, with a focus on maintaining momentum in exploration and technical studies [6][8] - The company plans to complete an additional 50,000 meters of exploration drilling in 2026, targeting extensions of high-grade mineralization [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the current market environment, highlighting the resilience and dedication of operational teams [4] - The guidance for 2026 assumes sustained operational performance gains achieved in Q4, with copper production expected to grow between 67,500 to 77,500 tons [14] - Management noted that the capital spending across existing operations is projected to decline as the company exits a multi-year investment phase [9] Other Important Information - The company is advancing a new shaft project at CaraÃba and investing in ventilation circuits and mine development at Xavantina to increase capacity and output [14] - The company aims to maintain a strong cash position and target a net debt to EBITDA ratio below 1 times ahead of commencing a return of capital program [21] Q&A Session Summary Question: Guidance on gold concentrate stockpiles at Xavantina - Management indicated that while they expect strong volumes in shipment, Q1 is expected to have very modest sales due to the rainy season [25][26] Question: Update on Tucumã's filter press issue - Management confirmed that the filter press has been ordered and is expected to be operational in Q4, but it is not included in the 2026 guidance [31] Question: C1 cash cost guidance for Tucumã - Management explained that the main drivers for guidance include lower grades and additional maintenance costs, which are expected to stabilize operations [41][44] Question: Benefits from mechanization investments at Xavantina - Management highlighted that mechanization investments aim to reduce workforce exposure and improve alignment between mine output and mill capacity [46] Question: Potential capital return once net debt to EBITDA is below one times - Management outlined that steps include reducing net debt, paying down the revolver, and discussions with shareholders regarding timing and form of capital return [50][51] Question: Exploration spend and projects beyond Furnas - Management confirmed that the majority of the exploration budget will be allocated to Furnas, with some opportunities being explored at other sites [58]

Financial Data and Key Metrics Changes - The fourth quarter average realized price was $331 per ton, with produced sales of approximately 2.4 million tons, generating Adjusted EBITDA of $186 million and an adjusted net loss of $11 million [6][12] - Adjusted EBITDA decreased compared to the third quarter of 2025 due to higher sales being offset by a lower average realized price and immediate fixed cost recognition related to plant outages [6][12] Business Line Data and Key Metrics Changes - Methanol production was higher in the fourth quarter compared to the third quarter, with 216,000 tons produced at Beaumont and 186,000 tons from Natgasoline [9][10] - In Geismar, production was slightly higher, while in Chile, both plants operated at full rates for most of the fourth quarter, despite a temporary restriction on gas supply due to a third-party pipeline failure [10][11] Market Data and Key Metrics Changes - Global demand for methanol increased by about 4% in China, while demand outside of China remained relatively flat [7] - Spot methanol pricing in Asia Pacific and Europe increased, with Chinese methanol prices trading above $300 per metric ton and European spot prices close to $400 per ton [8] Company Strategy and Development Direction - The company remains focused on maintaining a strong balance sheet and ensuring financial flexibility, with a near-term capital allocation priority directed towards repaying the Term Loan A facility [12][13] - The integration of newly acquired assets is ongoing, with a target of realizing $30 million in synergies by the end of 2026 [46][47] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the impact of current events in the Middle East on global markets and the company's business [6][7] - The current escalation in the Middle East brings significant uncertainty to the reliability of methanol supply, with expectations of reduced supply from Iran impacting operations and trade flows [8][20] Other Important Information - The company ended the year with a strong cash position of $425 million on the balance sheet and has since repaid an additional $50 million of the Term Loan A facility [12] - Expected equity production for 2026 is approximately 9 million tons of methanol, with actual production varying by quarter based on various factors [11][12] Q&A Session Summary Question: Can you talk about costs and what they look like into the first half of this year? - Management noted that unabsorbed costs were recognized due to outages, but fixed costs are expected to decrease moving forward [16] Question: What do you think will happen in the market with the current situation in the Middle East? - Management emphasized the importance of supply reliability and noted that pricing has increased globally due to anticipated tightness [19] Question: How opportunistic can the company be with price spikes? - The company primarily operates on term contracts but can adjust prices monthly based on market conditions [23] Question: Are you aware of any damage to methanol assets in Iran? - Management confirmed no awareness of damage to methanol facilities but noted that gas imports from Israel to Egypt have ceased [26] Question: What are the key factors in deciding to mothball the New Zealand plant? - The decision hinges on gas production and development from mature fields, with current operations being marginally profitable [55] Question: Are you realizing the benefits of the OCI acquisition? - Management indicated that while the acquisition was expected to provide significant EBITDA, current methanol prices are lower than anticipated, impacting results [59]