Principal Risks and Uncertainties

Nature of risk

Future political, security and social changes in the countries in which we operate may impact on the Group.

The future investment framework, stability and business conditions in our operating locations could change with governments adopting different laws, regulations and policies that may impact on the ownership, development and operation of our mineral resources projects. The Company continues to adapt to the changing regional security in our development and exploration projects in Côte d’Ivoire. Outside of our host countries we are monitoring the ongoing conflicts in Ukraine, Gaza and the Red Sea to ensure we can mitigate where possible the potential wider impact of this on the Company.

Mitigation measures

Government policies have developed over the past years in host countries to incentivise foreign direct investment and the development of local mining industries. Centamin deploys a proactive approach to government and stakeholder liaison and actively monitors – on an ongoing basis – legal, fiscal, regulatory and political developments in its host countries.

The terms of the Sukari Concession Agreement, (including the applicable tax regime and rights of tenure), were issued and ratified under special Law No.222 of 1994 and can, therefore, only be amended by the passing of a further law. We continue to closely monitor the situation through our own security, local and national government contacts, national security and external advisors.

Ongoing strategy

To maintain a detailed and up to date understanding of the investment framework and operating conditions as well as a constructive relationship with all concerned stakeholders including host governments and local partners, such as EMRA.

The Company undertakes to abide by the spirit and letter of the Concession Agreement as well as local laws/regulations in Egypt including around the areas of exploration and furthermore where our development and exploration activities are taking place in Côte d’Ivoire.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

The Group’s structure includes mining exploitation and exploration licences in Egypt and Côte d’Ivoire held through companies in Australia, Jersey and the United Kingdom. As a result, the Group is subject to various legal and regulatory requirements across all jurisdictions, including cross jurisdictional taxation, related party transactions, antibribery and corruption.

Ongoing legal, fiscal and regulatory changes may impact project permitting, tenure, taxation, exchange rates, environmental protection, labour relations, and the ability to repatriate income and capital. These measures may also impact the ability to import key supplies, export gold production and repatriate revenues.

Mitigation measures

Centamin deploys a proactive approach to government and stakeholder liaison and actively monitors – on an ongoing basis – legal, fiscal, regulatory and political developments in its host countries.

In Egypt we have the Sukari Concession Agreement which was passed as a law and can only be amended by means of another law amending this law, so we have the right to export gold, repatriation of funds, existing Tax Exemption and further considerations.

The Group engages with the relevant regulatory authorities. In addition, on an ongoing basis, the Group seeks appropriate advice to ensure compliance with all relevant regulation and legislation. Examples would be the global tax strategy in place which ensures all taxes are paid at an operational level and further tax requirements are met through the holding structure in addition to added protection afforded by double tax and bilateral investment treaties in Australia and the United Kingdom. Further to this the negotiation of the Mining Model Exploitation Agreement (MMEA) provides a new legal and fiscal framework for any new EDX commercial discoveries. Appropriate monitoring procedures are in place, and we ensure that we manage legal and regulatory compliance where required.

Ongoing strategy

The Company seeks to ensure that it complies with all relevant regulation and legislation including its environmental and operational commitments set out in the relevant permits/authorisations and local laws/regulations

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

Centamin’s ability to operate and conduct its business may be adversely affected by current and any future dispute resolution and/or litigation proceedings. Centamin was party to a single legal action in Egypt. The details of this litigation, which relates to the Sukari Concession Agreement, are given in note 5.1 of the financial statements in the 2023 ARA. This challenge to the Sukari Concession Agreement could affect the Company’s ability to operate the mine.

Mitigation measures

In order to mitigate this risk Centamin had (a) retained reputable legal advisers and continues to actively pursue its legal rights with respect to this case; and (b) maintained regular contact with its Egyptian legal advisers who actively monitored developments in both court and local media for signs of any legislative or similar developments that related to this litigation or which may have otherwise threatened its operations, finances or prospects.

The potential for serious impact was further mitigated by: 

• Centamin’s adherence to local laws and agreements; the Egyptian government’s continued support on the constitutionality of Law No. 32 of 2014, which restricts the ability of third parties to challenge contractual agreements between the Egyptian government and investors such as Centamin; the investment protections and dispute resolution provisions set out in the Sukari Concession Agreement and the bilateral investment treaty between Australia (PGM’s place of incorporation) and the Arab Republic of Egypt.
• On 14 of January 2023 there was a ruling by the Egyptian Supreme Constitutional Court which held that Law No. 32 of 2014 was constitutional. This was upheld in the final [judgment] by the Egyptian Supreme Administrative Court setting aside the 2011 third party challenge to the validity of the Sukari Gold Mine exploitation licence issued under the Sukari Concession Agreement. Further detail is given on our website in the update issued on the 29 November 2023.

Ongoing strategy

To minimise exposure to litigation and reduce the impact of actions by complying with all relevant laws and regulations and to defend and/or bring any actions necessary to protect the Company’s assets, rights and reputation.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Slow

Nature of risk

Economies across the world negatively impacted by COVID have been further impacted by ongoing conflicts in Ukraine, Gaza and the Red Sea plus wider macroeconomic developments globally. From 2021 we saw increases in operating costs and greater inflationary pressures, together with a shortage of critical consumables and equipment. We expect this uncertainty to continue in 2024. This situation could create an adverse impact on our operations, costs, sales and profits.

Mitigation measures

We monitor price movements and market dynamics using primarily third-party analysis and forecasts in order to support our financial projections and cash management strategies. Prices will continue to influence budget considerations in areas such as development, exploration and the timing of certain capital expenditures. We focus on cost efficiencies and capital discipline to deliver competitive all-in sustaining cost.

The Group must continue with the disciplined approach to managing operating costs, continual investigation and implementation of cost saving opportunities to counter inflation and improve margins. Further to this we have established increased levels of stores and inventory which will be maintained in the short to medium term to reduce uncertainty alongside continual engagement with our partners to assist with support managing our supplies in a timely manner.

Ongoing strategy

We will continue to allow for financial flexibility when budgeting and forecasting using a measured approach to the potential fluctuations in gold price, inflationary pressures and the increasing costs across our capital expenditure and operational needs. Initiatives to manage these external pressures include the RCF, Gold Price Protection Programme, the solar plant, Grid Connection Project and potential solar plant extension at Sukari.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

The extent of the Company’s financial performance is due in part to the price of gold, over which the Company has no influence. Revenues from gold sales are in US dollars and Centamin has exposure to costs in other currencies including Egyptian pounds, Australian dollars and sterling.

Centamin manages its exposure to gold price by keeping operating costs as low as possible, has in place the Gold Price Protection Programme and continues to consider other options where these would be viewed as beneficial for our commitment to stakeholder returns.

Mitigation measures

The Group continues to be exposed to the gold price; however, in 2023 we introduced the Gold Price Protection Programme (note 2.4 of the financial statements in the 2023 Annual Report gives further information) and the cash costs of the Sukari Gold Mine remain within our budget, which is conservatively based on the long-term gold price as modelled by external advisors. This often means we can take advantage of any changes in the gold price, alongside retaining an element of downside protection, which have been positive over the course of 2023 with a realised average price of $1,948.

Ongoing strategy

We will continue to allow for financial flexibility when budgeting and forecasting using a measured approach to the potential fluctuations in gold price. This includes ensuring that we can manage within the boundaries and margins that the price of gold and the impacts to our cost base allow.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

Centamin targets a capital structure to provide sufficient liquidity and financial flexibility to meet the Company’s current and future financial commitments, while balancing that with sustainable stakeholder returns.

The capital requirements to develop Sukari, to deliver key projects which, in 2024, is a focus on development at Doropo and future gold prices and operating costs are all factors which need to be considered alongside the external pressures, as highlighted in the Global Macroeconomic Developments risk.

Mitigation measures

We monitor price movements and market dynamics using primarily third-party analysis and forecasts in order to support our financial projections and cash management strategies. Prices will continue to influence budget considerations in areas such as exploration and the timing of certain capital expenditures. We focus on cost efficiencies and capital discipline to deliver competitive all-in sustaining cost. Additional optionality could be generated through the use or extension of the RCF.

The Group must continue with the disciplined approach to managing operating costs, continual investigation and implementation of cost saving opportunities to counter inflation and improve margins with recent examples including delivery of the solar plant, competitive tendering on operational contracts and the project allowing for connection to the Grid due to start in 2024. Further options being considered include a solar plant extension, underground operational expansion and proactive management of the supply chain to meet our operational needs.

We have a robust investment approval process involving the management and the Board as required.

Ongoing strategy

We will continue to allow for financial flexibility when budgeting and forecasting using a measured approach to the potential fluctuations in gold price, inflationary pressures and the increasing costs across our capital expenditure and operational needs. This includes ensuring that we can manage within the boundaries and margins that the impacts to our cost base allow.

Distribution of free cash flow to stakeholders will continue to be managed in a balanced and sustainable manner that allows for both growth and returns.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

Sukari currently constitutes Centamin’s main mineral resource providing production and revenue. We recognise until further production growth beyond the core Sukari asset is identified there is the challenge of diversification.

Mitigation measures

Sukari has a number of measures to increase operational and financial resilience including, two distinct ore sources (open pit and underground), the processing plant has two separate circuits and there are two separate power stations. These factors and the investment in opening up multiple mining areas during 2021-23 results in improved operational flexibility. The commissioning of the solar plant, the project allowing for connection to the Grid and further opportunities to reduce operating costs all act to improve margins at Sukari, and therefore strengthen the Group’s balance sheet.

The Group’s organic growth opportunities progressed in 2023 with the delivery of a positive update on the pre-feasibility study for Doropo, with additional updates on the EISA and DFS planned for mid-2024. We also started fieldwork on the highly prospective Eastern Desert Exploration ground in Egypt with an update available on our website dated 9 January 2024 on the encouraging maiden EDX drill results.

Our existing assets offer longevity and organic growth which stand to deliver diversification over time. Outside of this, where opportunities would provide the correct asset quality and meet returns criteria, we would also consider further expansion to the portfolio through acquisitions.

Ongoing strategy

We are therefore actively looking to diversify the portfolio at all development stages. From the earliest stage targeting exploration ground which could build our long-term development programme, to considering the acquisition of production and development assets. These opportunities are subject to strict investment criteria and a robust investment approval process involving the management team and the Board, as required.

The exploration projects across the business provide a well-balanced project pipeline, with potential to add incremental shareholder value by increasing production. Further information will be provided through 2024 in updates on the development and exploration activities including the release of the latest position for Doropo.

Risk appetite

Level: Informed

We aim to have an approach that could deliver reasonable rewards, economic or otherwise, by managing risk in an informed way

Risk velocity

Slow

Nature of risk

SGM is 50:50 jointly owned by PGM (the Company’s wholly owned subsidiary who operate Sukari) and EMRA, with equal board representation from both parties. The board of SGM operates by way of simple majority. Further to this with the award of the EDX concession areas we need to adhere with the agreed terms.

Should a dispute arise, or decision making become deadlocked which cannot otherwise be amicably resolved, then time-consuming and costly arbitration or other dispute resolution proceedings may need to be initiated.

Mitigation measures

It is of key importance for Centamin to maintain a healthy and transparent working relationship with its 50% partner, EMRA, through adherence to the Sukari Concession Agreement. With the onset of profit sharing, the proper application of the cost recovery, net profit share payment provisions and SGM protocols under the Concession Agreement, has become a key priority.

It is a key focus to maintain good working relations with EMRA, other relevant ministries and the wider government to ensure successful operation of the Sukari Gold Mine including our appointment of external PR consultants. The Group has regular meetings with officials from EMRA and invests time in liaising with the relevant ministry and other governmental representatives. This investment is shown by the wider commitment to Egypt through the EDX Exploration investment.

Ongoing strategy

A key objective of the Company is to maintain its licence to operate in its host countries. In Egypt, this is achieved through active and ongoing co-operation, regular meetings and correspondence with EMRA and the Ministry of Petroleum & Natural Resources, as well as making sure that the terms and conditions of the Concession Agreement and applicable laws are complied with as well as the terms of the EDX concessions. Ongoing monitoring and review of this is key and is an activity which we will continue to give the required focus to. A key focus in 2024 will be the engagement with EMRA and the Government on the Tax Exemption Renewal for the Sukari Concession

Risk appetite

Level: Balanced

We aim to have an approach that could deliver reasonable rewards, economic or otherwise, by managing risk in an informed way

Risk velocity

Moderate

Nature of risk

Centamin is committed to building and operating our mines in a safe and responsible manner. To do this, we seek to build trust-based partnerships with host governments and local communities to protect our licence to operate and ability to grow. We should only advance our business interests where this protects people, fosters socio-economic development and safeguards the environment, and leaves a positive legacy for our host communities.

Mitigation measures

Ensure that we act in an ethical, responsible and transparent manner. This includes establishing clear performance standards that meet both industry good practice and local expectations within our areas of operation.

Confirming compliance with applicable regulatory requirements by maintaining an up-to-date compliance register for each asset and routinely review our performance against these commitments and obligations.

Sustain broad-based support to our investment plans through informed consultation and participation with stakeholders.

Establish baseline environmental and social conditions that provide a robust science-based assessment of risks and impacts at the earliest stage in the project cycle.

The government in Côte d’Ivoire have recognised the Doropo Project as a strategic priority for the country, we will ensure we continue to engage with the appointed Technical Committee on the progress of the EIS and DFS.

Ongoing strategy

Acting in an ethical, responsible and transparent manner is fundamental to realising the significant business benefits gained from building trusted and constructive relationships with all our stakeholders, and to maintaining our socio-political licence to operate.

We will continue to reinforce our sustainability performance framework – policies, standards and management assurance – to support growth.

Further information is shown in our 2023 Sustainability Report.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

Our accomplishments as a Company rely on our ability to attract, develop and retain talented people as they are the foundation of our business.

It is imperative that we support our people to develop a shared understanding of the critical behaviours and skills required for successful performance and provide them with the opportunity to progress to more senior positions within the Company. Otherwise we face the risk of elevated rates of turnover and knowledge loss.

Valuing diversity and promoting inclusion is an ethical imperative for a sustainable business.

Mitigation measures

The Company will provide professional and personal development opportunities that empower employees to fulfil their potential and operate at a proficient level, including succession planning.

All employees participate in an annual performance appraisal and objective setting process that defines their expectations and the support required for further development.

We ensure that we raise workplace awareness of our organisational values and the critical behaviours required for successful performance.

We provide visible leadership to improve diversity and inclusion in the workplace supported by target setting to increase female representation.

Ongoing strategy

To reinforce awareness of our Code of Conduct, sustain resourcing towards training and professional development programmes and reinforce leadership to overcome barriers to diversity and inclusion.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Moderate

Nature of risk

Elevated expectations on sustainability, including stakeholder scrutiny, third-party assurance, reporting and disclosure, regulatory requirements and application of good industry practice.

Recent high-profile external events have put a spotlight on the need for increased levels of corporate accountability on matters including tailings management, climate change, biodiversity, water management, responsible supply chains, diversity and inclusion.

Mitigation measures

The Company will engage with industry groups, investors and regulators to understand their expectations.

We have established clear performance standards that meet both industry good practice and local expectations within our areas of operation. Key industry standards include the RGMPs, GISTM, TCFD and the emergence of the Integrated Reporting Framework (IFRS).

We have defined environmental and social objectives and set targets to drive continuous improvement. We measure, evaluate, report and disclose on our sustainability performance.

We shall continue to build the capacity of our asset-level HSES specialist teams to meet our performance standards including the development of operational management systems aligned to ISO standards.

Ongoing strategy

Ensuring we continue to monitor the emergence of new industry standards and their application to Centamin’s business. Reinforce our Sustainability Performance Framework – policies, standards and management assurance - and its integration into asset-level management systems and practice.

Continue to build the capacity and awareness of our asset-level teams to integrate environmental and social risks and opportunities into operational activities.

Further information is shown in our 2023 Sustainability Report.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Slow

Nature of risk

We recognise transition to a net zero carbon economy is expected to profoundly affect our business model over the medium and/or long term due to factors including: capital investment and access to new technology, the pricing of carbon emissions; availability and costing of commodities and consumables; changing market and investor sentiment.

The most significant opportunity for decarbonisation is the ability to reduce and potentially remove fossil fuel-generated electricity from gold mining’s sources of power.

Mitigation measures

We will focus on execution of our 2030 Decarbonisation Roadmap to reduce emissions, from the existing business, by 30% versus a 2021 base-year. This target is underpinned by: (i) a 50MWAC connection to the national grid and (ii) a 15MWAC expansion of the solar PV plant. A key carbon abatement initiative which was delivered is the operation of the 30MWAC solar PV plant.

The Company continues to investigate other carbon abatement opportunities including electrification of our mining fleet and energy efficiency programmes.

We have completed scenario analysis of climate-related transition risks and opportunities over the long term as shown in the 2023 Sustainability Report, and assess the impact of these risks on business strategy. We will systematically review our climate-related transition risks and opportunities on an annual basis, including application to growth projects.

Ongoing strategy

Continued execution of our 2030 Decarbonisation Roadmap including assessing other carbon abatement opportunities to a higher level of detail.

Integration of the results of the scenario analysis for climate-related transition risks into our business model and life of mine planning as appropriate.

Risk appetite

Level: Balanced

We aim to not take any unnecessary risk within our control. However, we understand that inherently we have limited control over a number of external risk factors.

Risk velocity

Slow

Nature of risk

It is an inherent risk in our industry that incidents due to unsafe acts or conditions, or the failure of our equipment or infrastructure could lead to injuries or fatalities. Remote and rostered work also has potential to impact the mental health and wellbeing of our workers.

Our workforce faces potential risks from hazards such as fire, explosion and electrocution, as well as risks specific to the mine site and development project. These include potential slope failures or collapse in the underground, mobile plant collisions and incidents involving hazardous materials. Continuing focus on the risks associated with mining companies’ tailings facilities also means we continue to monitor this risk, completing regular internal and external technical reviews.

Mitigation measures

Protecting the safety, health and wellbeing of employees, contractors, local communities and other stakeholders is a fundamental responsibility for Centamin. We seek continuous improvement of our safety and health management system and practices including assurance processes, with particular focus on the early identification of risks and the prevention of incidents.

We have defined our OHS objectives and set targets to drive continuous improvement. These are supported by a process to measure, evaluate, report and disclose on our safety performance.

We have continued to reinforce our critical risk and control standards, review and test our crisis management plan, and enhanced employee benefits including delivery of a health & wellbeing plan. We continue to build the awareness and capacity of senior management teams to operationalise our critical risks standards and it should be noted that our OHS management system at Sukari is now certified to ISO 45001.

Ongoing strategy

Ensuring the safety, health and wellbeing of our workforce is directly aligned with our first Value, to Protect, and is a moral imperative. This requires a focus on zero-harm whilst constituting a direct investment in the productivity of the business and the physical integrity of our operations.

A safe and healthy workforce translates into an engaged, motivated and productive workforce that mitigates operational stoppages, and reduces potential incidents or harm. We will ensure we sustain visible leadership in the achievement of a zero-harm workplace.

Risk appetite

Level: Controlled

We aim to consider potential breaches in our policies and controls to safety, health and wellbeing. The Board invests heavily in a programme of continuous improvement in relevant practices and has an expectation to meet the highest standards.

Risk velocity

Rapid

Nature of risk

Exploration activities by their very nature are highly speculative with an inherent degree of risk. Centamin strives to make new discoveries, growth and value-creation opportunities through our exploration programme.

Whilst Egypt continues to represent a significant opportunity through brownfield and greenfield exploration around the Sukari Concession and highly prospective ground in Egypt’s Eastern Desert, we also recognise our potential growth projects in Côte d’Ivoire.

Mitigation measures

Before undertaking any exploration activities a risk-based approach is undertaken to filter projects considering a number of factors.

There is a structured approach established with the exploration team who undertake systematic work programmes which reduce the risk and gradually increase the certainty of exploration discoveries that allows a focussed spending strategy. This is supported by independent advice and an investment in technology.

2023 delivered a positive update on the finalisation of the pre-feasibility study for Doropo with additional updates on the EISA and DFS planned for mid-2024, we started fieldwork on the highly prospective and underexplored ground in Egypt with an update available on our website dated 9 January 2024. During 2023 we invested a total of US$31M in greenfield exploration and development activities. An initial US$9M is budgeted for exploration expenditure at EDX and US$14M on project development at Doropo in 2024.

Ongoing strategy

Ensuring we have an effective and efficient exploration and development programme to meet our strategic targets, long-term production and reserves goals. During the first half of 2024, we will release the results of the maiden drilling campaign across our Egyptian exploration portfolio and will also aim to publish the updated reserve numbers for Doropo.

Risk appetite

Level: Opportunistic

We aim to consider opportunities with higher levels of risk in exchange for potentially greater reward, as long as they do not conflict with our core values.

Risk velocity

Slow

Nature of risk

Geological uncertainty is an inherent risk which all mining companies face.

Understanding of the geology and associated grade distribution can be influenced by a number of factors which can impact the size, orientation and shape of the ore and the potential grade expected by the mining operations.

As these estimations are used to inform our operations and the wider business strategy we need to ensure that we can make this process as accurate as possible.

Mitigation measures

The Mineral Resource Management team is focused on developing the geological and structural framework in which mineralisation is hosted. This has brought about a clear understanding of the structural and lithological controls on mineralisation and the development of a predictive model which is being used to expand the Mineral Resource and Reserve base for the Company.

Orebody stewardship ensures geology and the geologist are at the forefront of all mining and extraction process decision making. This has allowed improved long and short-term planning, timing of grade control, material movement, blending and processing requirements to maximise return on investment. A specific example would be the change in drilling strategy for 2024, with a focus on grade control and infill drilling to support short- and medium-term operational planning as well as the introduction of underground RC grade control drilling.

Detail on increases in the Group Resource and Reserves was issued on 24 January 2024.

Ongoing strategy

To achieve an accurate estimation based on geology, that informs improved mine planning and operations to deliver results. This will be supported by the near-term roadmap to 475 - 500koz pa and updated Life of Mine Plan for Sukari issued in 2023 including average guidance issued to 2034.

Risk appetite

Level: Informed

We aim to have an approach that could deliver reasonable rewards, economic or otherwise, by managing risk in an informed way.

Risk velocity

Moderate

Nature of risk

By their nature, mineral resources and reserves are estimates based on a range of assumptions, including geological, metallurgical, technical and economic factors. Other variables include expected costs, inflation rates, gold price, grade downgrades and production outputs.

Unplanned operational stoppages can impact our production. An inability to shift the volumes of waste required, drops in our operational capacity in mining, contractor management, supply chain disruption or ground stability are examples of potential risks.

Accurate and complete planning is pivotal to informing production estimates, grade quality and provide greater clarity to corporate/operational decision making. We then need to deliver against our targets by analysis of our data to inform the right decisions.

Mitigation measures

Over 2021 and 2022 the Company focused on improving mining flexibility, delivering growth and building consistency alongside other improvements.

During 2023 we extended our track record of meeting production guidance to a third year, commissioned the underground paste plant, updated the market on the new Life of Mine (“LOM”) Plan, issued estimated average guidance until 2034, continued with accelerated waste-stripping due to complete in mid 2024, started the Grid Connection Project and provided a Group Resource & Reserve update. We also had a change in drilling strategy, further detail is shown in the Geological focus section of the 2023 ARA, to further reinforce operational delivery in the near term.

The LOM should deliver increased gold production, lower operational costs, reduce operational risk and significantly reduce carbon emissions. Further details can be found in the announcements we have made to the market and most recently in the Q4 report on 18 January 2024.

Ongoing strategy

To achieve reliable and consistent production, whilst optimising the potential of the operation as highlighted in the Operational Review of the 2023 ARA. The Company provides timely and accurate information to the market on production levels and forecasts. The mining sector continues to face operating cost inflation, including labour costs, energy costs and the natural impact of ore-grade deterioration over time which we are looking to manage where possible.

In order to deliver our growth strategy and to maintain and improve our competitive position, the Group must continue with the disciplined approach to managing operating costs, continual investigation and implementation of cost saving opportunities and maintain consistent operational delivery.

Risk appetite

Level: Informed

We aim to have an approach that could deliver reasonable rewards, economic or otherwise, by managing risk in an informed way.

Risk velocity

Moderate