Caledonia Mining Corporation Plc (CMCL) Earnings Call Transcript & Summary

Okay. Let's start. It's half past 9:00. So good morning, and welcome to this Caledonia Mining Capital Markets Day. So in addition to the people in the room here today in New York, I believe we've got about 250 people joining us online from other parts of the world, primarily the U.K. and Zimbabwe. Today, we will show you how a proven Zimbabwe gold producer that intends to grow from approximately 75,000 ounces of gold a year to more than 270,000 ounces of gold in 2029, while maintaining the operating and financial discipline that has defined our business. I'm Mark Learmonth, Chief Executive Officer. I've been with Caledonia since 2008, following a career in investment banking in Johannesburg and London. I became CEO in June 2022, having previously served as the company's CFO since 2014. I'll draw your attention to the disclaimer which contains important information regarding forward-looking statements, and you should read it in conjunction with today's presentations. So Caledonia is built on high-quality gold projects, all located in Zimbabwe. Blanket Mine, our current cornerstone asset which produced 76,000 ounces of gold in 2025 and made about $85 million of profit after tax. Bilboes is our immediate development project, it will produce 1.5 million ounces of gold over a life of mine of nearly 11 years with first production expected at the end of 2028. It has a funding need of about $600 million in MPV and of over $1.5 billion at the prevailing gold price. Motapa is a large exploration project, which is immediately adjacent to Bilboes a few weeks ago, we announced a maiden resource of approximately 0.5 million ounces of gold with plenty of further exploration potential over the next few years. Then finally, we have Maligreen, which is a relatively small development project with a further 0.5 million ounces of resources. And this has been somewhat overtaken by events elsewhere in the portfolio and is not an immediate priority. So today is about bringing these assets to life and explaining how we expect them to translate into growth and long-term value for shareholders. I'd like to outline the program for this morning and to introduce our presenting team. Maurice Mason will give us a brief overview of Caledonia and how it has evolved into a focused Zimbabwean gold producer and our portfolio that supports the next phase of growth. Over the last 20 years, the company has moved from a diversified collection of assets into a focused business with a clear growth trajectory. I will then do a presentation on Blanket Mine, our cornerstone asset. Blanket is an underground mine, which we acquired from [ Kinross ] in 2006 for about $4 million. And over the last 20 years, we've invested over $250 million, almost all from internal cash generation to increase production from 20,000 ounces per annum to the current level of 75,000 ounces per annum and we've extended the mine life. The Blanket shows that we can successfully design, fund and deliver a major project in country in the form of the Central Shaft project. Blanket underpins our business. It generates cash, supports our dividend and demonstrates that we understand how to operate successfully and responsibly in Zimbabwe and how to build long, strong term relationships with government, employees and local stakeholders. Over the last 9 years, Blanket has contributed over $0.5 billion to Zimbabwe and stakeholders by way of taxes, royalties, and dividends. Blanket is 120 years old this year, but still has growth opportunities, and we'll spend some time outlining these. The third presentation will be given by Victor Gapare, an Executive Director of Caledonia, and our largest single shareholder. Caledonia's major growth project. It's a large high-grade open pitable project with very low operating costs and very attractive project economics. Total production from Bilboes is expected to be about 1.5 million ounces over a mine life of nearly 11 years. Victor will give an overview of the project and update on the current implementation activities and set out the project timelines and milestones. First [ gold pour ] is expected in late 2028. And full production in 2029. Bilboes will cost about $600 million, and Ross Jerrard, our CFO, will set out our funding strategy and provide an update on the status of the various funding initiatives, which I'm going to say are very well advanced. Our fourth presentation, we'll cover the various exploration opportunities in the group and we'll be given by Craig Harvey, who is our Vice President, Clinical Services. Historically, exploration has not been a major focus for the group, largely because of capital constraints. But we've now identified several exciting exploration opportunities, which could significantly enhance our growth trajectory. Zimbabwe is highly prospective for gold but is significantly under-explored compared to other jurisdictions. Our strong position in Zimbabwe gives us a significant advantage in terms of identifying opportunities and turning them to account. After these four presentations, there will be a brief ESG video, we do then intend to break at that point -- at that point, we intend to break for coffee, and then we'll have an address after coffee by his excellency, the ambassador to the United Nations, after which then we will have an opportunity for Q&A. So just a single Q&A session instead of the two as advertised. In addition to the Caledonia presenting team, we have other members of Caledonia's Board management here today. We've got Camilla Horsfall, who organized this event and many thanks to her. We also have [ John Kelly ]. And then to me, he was Caledonia as Chairman, and he continues to serve as a Nonexecutive Director. I think that gets to the end. The order has changed somewhat late because I haven't expected is excellency, the ambassador to arrive and sit through the whole morning. So thank you very much for joining us. So I think it would just truncate things and make things go rather better if we have just a single Q&A session, which pulls everything together rather than have a staggered Q&A session. So I hope that meets with here a bit of approval. Okay. So with that, I will hand over to Maurice Mason.

Thank you, Mark. Hello, everyone. My name is Maurice Mason, I'm Caledonia's Vice President of Corporate Development and Investor Relations, and it's great to be here today to share the company's strategy and prospects with investors. So just a quick corporate snapshot. We are Zimbabwean-focused gold mine business. Headquartered in Jersey in the Channel Islands. We have stock exchange essence here in New York where the vast majority of the trading takes place about 99% of the liquidity is traded on the New York Stock Exchange. We also have listings in London on the [ A ] market and on the [ Victoria Force Exchanges ] in Zimbabwe. We pay a quarterly dividend. We've been doing so consistently for approximately 14 years. Current yield is about 2.2%. And we're trading at a relatively low PE 7.4x, particularly given the growth prospects of the business, which my colleagues will explain to you later. As far as shareholders are concerned, there's 19.3 million shares outstanding, 15% of which are held by management and insiders. So collectively, management and insiders represent the largest single shareholder block. A few things I'd draw your attention to on the register. There are three passive funds, BlackRock, [ Van Ekan dimensional ]. So BlackRock at 5% hold us in the index fund would track the Russell 3000. So that's not a mining specific fund. [ Dimensional ] at 4% are a quant-based index funds. So nondiscretionary investors, they sort of have a formula index following approach. And then [ Van Ekan ] hold us in their index fund that tracks the GDXJ. [ Baker Steel ] and [ Shining Capital ] were previous shareholders of Bilboes and became shareholders in Caledonia as part of the Bilboes transaction in 2023. There are also a few holders that came on to the register in Q1 this year as a result of the convertible bond transaction that we did in January, specifically [ Numera ] and [ Aliaska ]. It is worth noting also that 20% of our shareholder base as in Zimbabwe. As Mark said, the portfolio has evolved quite significantly over the past 1.5 decades. In the early 2000s, the company was a multi-jurisdictional junior with a collection of exploration assets that frankly, didn't do particularly well. And after we acquired Blanket and as Mark says, we acquired that for $4 million. If you look at the money it generates today certainly a case of investing against the time. But after we acquired that in 2006, and we saw what a great investment that was in terms of the potential in Zimbabwe from both a geological perspective, a human capital perspective. And from a capital allocation perspective, which, frankly, assets were cheap. They were cheaper than you could buy them anywhere else in the world, like the Blanket acquisition. We started to dispose of those assets and became 100% focused on Zimbabwe. So since we focused 100% of above we've evolved the company from a single asset producer producing about 43,000 ounces into a multi-asset portfolio producing pay 75,000 ounces today, which -- with a very attractive growth up line, which as you'll see later, we expect to be producing approximately 280,000 ounces in 2029. Here, you can see a location of the assets. They are centered around Bulawayo, Blanket approximately a 2-hour drive south of Bulawayo, then we have a regional office in Bulawayo and then the Bilboes complex to the north and then Maligreen further to the north of that. Bulawayo was about an hour is flat from Johannesburg, and Johannesburg has daily flights from -- internationally from just about all over the world. And as most of you probably have seen, we're an unusual combination of yield and growth. Most companies in -- with our growth profile, don't pay a dividend and certainly don't have the very low PE that we have as a result of having an operating business and operating cash flow. This is a chart to [indiscernible], It's a relative performance of Caledonia versus our peers. Our formula for success is very simple. We are careful, disciplined allocators of capital. We're trying to limit equity dilution, particularly when the share price is low, you don't want to give away equity when the share price to cheap. And we've been paying a dividend for the past 14 years, and the effects of that are quite helpful over the long term in terms of the compounding value of that dividend. This chart shows exactly that. It shows the cumulative compound performance of Caledonia, including dividends relative to both -- or to three things, the gold price, the GDX and the GDXJ. Since the first of January 2016. And as you can see, we've significantly outperformed any reasonable benchmark for a gold investor. Caledonia has delivered approximately a tenfold return for our investors over the past decade. And when one considers the growth profile that we have to show you today, we are quite confident that we still have a very bright future, and we expect this trend to continue. Long-term strategy, we are 100% focused on Zimbabwe. Our view from a diversification point of view, we get this question a lot is that investors can diversify much cheaper and much more nimble and much easier than we can. We have a generating asset in blanket, which is enormously helpful. Before this job, I was a mining analyst, analyzing companies like Caledonia, and I've seen lots of companies with good quality projects suffer significant value loss because they didn't have a cash-generating asset, and they have to go back to investors and dilute to keep lights on. So having a cash generating asset is very helpful and very important. We have organic growth from our project pipeline. So we don't have to acquire growth at inflated prices in this current gold market. We built this portfolio several years ago. And our current growth profile will transform the company and will keep us busy in this market for at least the next 5 years. We have been and will continue to be disciplined capital allocators. We are experts operating in Zimbabwe, frankly, and we think the country's risk is significantly mispriced as our chart of our performance has shown over the last decade. Just getting on to opportunities and challenges. As Mark mentioned, several of our directors here are with us today, and I can tell you that the Board and management has spent a great deal of time thinking about risks and opportunities and challenges of a business. And we have found that when the markets mispriced those things, that's where the opportunities are to deliver outsized returns. So in terms of the challenges we manage, firstly, obviously, commodity price, gold price risk. We like our position on the cost curve for our asset portfolio. We think is very good, and we think it will get even better when Bilboes in production, given the Bilboes cost profile from the feasibility study. We're confident we'll remain cash generative at virtually any conceivable future gold price given our current position on the cost curve. And we have a hedge in place for our portion of the Blanket cash flow at $3,500 an ounce. We put that in place to ensure cash generation from blanket for the Bilboes construction period, and Ross will tell us more about that later. As far as operating risk, we're proven operators. We've been running blanket and taking good care of it for 20 years. The resource has grown the mine life keeps growing. We've consistently grown those things and reinvested in the fixed asset base and invested in our people and processes and systems. As far as jurisdictional risk, this is one that we think is way overdone and mispriced as I've mentioned. We've successfully operated in Zimbabwe for 20 years. We know how to operate there. We know the procedures. We can navigate the regulations and bureaucracy. And we have good relationships in country and an excellent reputation as a business. As I said, I repeat myself whether we think this risk is -- the jurisdictional risk is always mispriced. Cost inflation is an issue for a industry like us. We've not been immune from this, and we do have active plans to manage cost increases and can hopefully engineer some cost reductions underway. I will note this is a volume business and a high percentage of the costs are fixed. So one of the best defenses against cost inflation is to spread fixed costs over more ounces, and we do have plans in place for that. Investors are often concerned about resource nationalism. We highlight this because we think it's obviously a concern for investors. We think the risk is overstated. And again, was priced, we have 36% of blanket owned by local partners and 20% of Caledonia plc is owned by Zimbabwean investors. So our interests are very strongly aligned with Zimbabwean investors and Zimbabwean communities and Zimbabwean government. So with that, thanks, and back to Mark.

Okay. Thank you, Maurice. Right. I'd like to take the next 20 minutes or so to talk about Blanket. Focusing in particular on its current cost structure and how we intend to reduce our cost per ounce. As I've already said, a Blanket is Caledonia's cornerstone asset. It's located close to the town of [ Gander ]. The region has a strong and long mining culture with a good supply of experienced workers and mining and service supply companies. Specialized skills and materials can easily be brought in from Johannesburg. Caledonia owns 64% of Blanket, as you've heard, 10% is owned by Workers Trust, a further 10% is owned by Community Trust and 16% is held by the Zimbabwe government. And this degree of local ownership gives us a very strong social license to operate, which we'll discuss later. Blanket has 2.18 million ounces of M&I resources, and that's on a Canadian basis. So it's 100% and inclusive of reserves and a further 750,000 ounces of inferred resource. The current life of mine is out to 2034, although this is currently being reviewed to reflect the recent increase in resources in [ Craig ], we will discuss our exploration later, but Blanket has been operating for 120 years. and we're very confident that with the ongoing deep level exploration will have further mine life extensions. Blanket currently produces about 75,000 ounces of gold, although we believe there's scope for production to increase perhaps towards 100,000 ounces over the course of the next few years. Blanket is a consistent cash generator in the 6 months to June 2026, Canada's cash flow from operations was $62 million. That's before interest, tax and CapEx and all of that came from blanket. Okay. By way background, I'd like to talk a little bit about the Central Shaft project, which we implemented between 2015 and 2022. And this project effectively built a new mine underneath the pre-existing mine, which at that time, only operated down to about 750 meters below surface. The Central Shaft project involves thinking a 6-meter diameter 4-compartment shaft from surface to 1,260 meters. That's about 4,000 feet. And we did this using our own workforce and only a handful of contractors. Now blind sinking, line shaft sinking is notoriously dangerous, but this project was achieved with no fatalities and with only two lost [ time ] injuries. And the size and technical complexity of the project shows that we have the capacity to implement large-scale projects in Zimbabwe. The project cost $150 million. And at that time, we had no access to debt or equity, so the entire cost was funded from internal cash flows. I was a CFO at the time, and it required rigorous capital discipline and cost control. From a commercial perspective, the Central Shaft project created a platform for Blanket to increase production and extend its mine life. Well, this slide shows how we've grown Blanket over the 20 years or so of our ownership. And it also demonstrates our ability to develop and implement strategy and our capacity to deliver in Zimbabwe. So at 5-year intervals from 2010 to 2025, we've increased gold production from 18,000 ounces to 76,000 ounces. Blanket's profit before tax has increased from $5 million to over $130 million and Blankets profit after tax has increased 27-fold from $3.5 million to $93 million. And over that 20 years, we've also increased M&I resources from only 60,000 ounces to the current level of 2.18 million ounces. Now you'll also notice from this graph, the Blankets online cost per ounce has increased substantially over the time series. And for the rest of this presentation, I'll explain why this has happened and what are we going to do to address it? So two graphs here. In the left-hand graph, you can see that online costs shown by the orange line, and that's increased from $780 an ounce in 2020 to $1,250 an ounce in 2025. And from the bars, you can see the cost increases were spread across all components, electricity, labor and consumables. Now to some extent, this cost increase was due to general cost inflation. We've improved our electricity mix. We've reduced diesel component from 8% to only 2% over the last 20 years or so. We process more tonnes, more tonnes per employee, but the average cost per employee has increased by over 50%, and some consumable costs have more than doubled, particularly drills steels. But the biggest factor which contributed to cost escalation was the fact that between 2020 and 2025, Blankets operations changed in that we hoisted more ore from greater depth. So in 2020, blanket hoisted 630,000 tonnes from a depth of 760 meters. So I think that equates to 470 million tonne meters. By 2025, we were hosting 800,000 tonnes, mostly from a depth of 1,260 meters, which equates to nearly 850 million tonne meters. Now that's results in higher energy costs, higher costs because more energy is needed to hoist at greater depth. So on the right-hand graph, the orange line shows an index of cost expressed per tonne meter and you can see it's much more stable, increased by only 8% over the course of the last 5 years. So Blankets costs have largely increased for structural reasons, three things: greater operating depth higher input prices and then also the additional infrastructure that we've had to add as we've gone deeper, so more ventilation, more cooling and more rock engineering. Those three structural reasons have been amplified by three other factors: lower grade, increased mining dilution, which means that the [ in-situ ] grade is further diluted by introducing waste into the ore mix, and the third is reduced mining flexibility, which meant that we will be temporarily unable to mine the high-grade areas. So we understand why our costs have gone up, but what are they going to do to fix it. And broadly, there are three responses. The first is to improve the grade by restoring access to high-grade areas and reducing mining dilution. The second is to increase production. Approximately 70% of Blanket's costs are fixed, increasing production means those fixed costs are spread over more ounces. And thirdly, we must do what we can to flat out, reduce our costs. So let's first deal with grade improvement. This graph shows the average monthly plant feed grade from January 2024 to July 2026, it broadly splits into three periods. The first in dark blue is January 2024 to June 2025 when the average grade was 3.16 grams a tonne. We were very happy at that point. And then in the lighter blue, from July 2025 to December 2025 the grade average is only 2.77 grams a tonne, and that was due to a fall of ground in July 2025 in a particularly high grade, high-volume area. And as we didn't have access to other high-grade areas, we fill the mill with low-grade tonnes. January 2026, that's the light blue, I would characterize that as a recovery period. The average grade across those 7 months was 2.86, but within those 7 months, it improved from 2.5 grams a tonne to around 3 grams a tonne. In July, we broadly expect it to remain stable at that level. And just to put the effect of higher grades and lower grade in context, we mined about 200,000 tonnes of ore a quarter at a grade of 3.1 grams a tonne, that contains 200,000 tonnes container 20,000 ounces of gold. The grade only 2.5 grams a tonne, which is what we were doing in January, we're only mining 16,000 ounces a quarter. And that difference is amplified because typically at lower grades, the recovery is also lower. So increased production arising from higher grade is free in the sense that there's no extra cost to achieve the higher production. Second thing is better mine control. So how have we achieved this improved grade and how are we going to sustain? And again, there are three things. The first is that we've improved mine flexibility. We've accelerated our development to open up more mining areas. Over the last few years, we've also spent a lot of money to introduce modern mining technology to improve our stope design, our evaluation. We've got better planning systems, and we have more closely aligned geology, planning, mining and rock engineering. The third thing is that we've improved our operating controls to make sure we actually do on a daily basis, what we set out to achieve. The second is to increase production. So we have broadly four initiatives to increase production at Blanket mine. First is grade improvement, which we've already discussed. The second is a new system, which we introduced in June, which means the Blanket now works 7 days a week instead of 6 days a week. The third is a relatively new opportunity to go oxide mining of the newly discovered CapEx, which I'll talk about in a little bit more detail. And the fourth is an upgrade to the [ elution ] plant, which will be completed later this month, should realize an extra 1,300 ounces of gold over the remainder of 2026 and thereafter, about 700 ounces per annum. So in June 2026, we implemented a new shift system, the Blanket, which has increased mining activity from 6 days a week to 7 days a week. Now the new shift system was primarily introduced to reduce work fatigue by reducing the opportunity for workers to work overtime on a Sunday. There was no capital cost to this exercise, but we did recruit 250 new employees, so the net increase in operating costs arising from the new employees is expected to be about $300,000 per annum because that cost is offset by reduced overtime payments. But more importantly, the new shift system is expected to add an additional 100,000 tonnes per annum of run-of-mine material. And we've already seen a marked improvement in daily ore production as well as a reduction in overtime. In the short term, the increased line production allows us to rebuild a stockpile, which will need in 2027 when we convert the central shaft winder from AC to DC operations, and that's also expected to reduce our electricity use. Increase mine production also gives us the opportunity to increase mill throughput and increased gold production. So in the short term, we'll be processing 200 tonnes a day of the increased run-of-mine production through the Lima plant. The lever planned is a small satellite metallurgical plant, which is located 1.3 kilometers from the main plant. We've expected to been using this plant for R&D work, but we've converted it back to its original use at a cost of about $300,000. And the Lima plant is ramping up production as we speak today and is expected to add about 100 ounces of bold reduction in the remainder of 2027. Longer term, we'll upgrade the main method steady or we'll come back to that. Longer term, we'll upgrade the main metallurgical plant #4 shaft to handle all the increased mine production, and this should increase gold production by about 8,000 ounces per annum. But the capital cost and the timing of those upgrades is currently being finalized. The upgrades require the #4 [ met ] plan really relate to the second recrushing and the CIL capacity. So earlier this year, we upgraded the milling capacity from 2,400 tonnes a day to 2,600 tonnes a day, by upgrading #3 ball mill at a cost of $800,000 and as I said, we're just completing an upgrade to the elution plant at a cost of about $600,000. Secondary crusher is currently the main bottleneck the existing crushers which currently has a capacity of 2,450 a day. Now we could increase throughput, but that would just reduce the residence time and adversely affect recoveries. So we're still working on the capital estimates and the timing for this upgrade. In our Q2 results, we increased sustaining CapEx guidance for the year by about $3.5 million to cover the planned upgrades for the metallurgical plant that I just outlined to you. We're still refining these numbers. And so we're currently uncited after the time frame for the various bits of work to be done. And hence, Today, we can't accurately guide when in 2026, the upgraded plant will be available to deliver the increased ounces. But in total, these work should convert the additional 100,000 tonnes per annum of or production into increased production of 8,000 to 9,000 ounces. The precise timing of that depends on when these works get completed. Let's move on to CapEx, at the end of August, we published a resource update for Blanket, which includes a newly identified surface oxide resource of 22,000 ounces of gold. This isn't very large, but commercially, it's very important because it could give rise to short-term cash generation. The initial metallurgical testing for the oxide ore is very, very encouraging, but that's only in lab conditions. So between now and the end of the year, we will run a test heap leach pad using a 10,000 tonne sample. And assuming this works, we plan to embark on full-scale oxide mining as early as we can. And the constraining factor as to when we can do that is the need for a revised environmental permit. We submitted that application a few weeks ago, and the time frame is typically 60 days to receive approval. Capital cost for the heap leach is expected to be about $4 million as we set out in our Q2 results. So at a target mining rate of about 40,000 tonnes a day, a grade of 0.9 grams a tonne and assuming a recovery of 55%, that should give annualized production of 6,000 or 7,000 ounces old a year. And you can see from the map the location of the [indiscernible], which is inside the mine lease area and very close to the existing infrastructure. Craig will talk a little bit more about our exploration, but we do intend to continue those oxide exploration activities further northwards inside the lease area. The fourth initiative is to upgrade the [ elution ] plant, and this is ongoing and has largely been completed. [ Elution ] is a process that takes the carbon pellets out of the CIL process when they're loaded with gold. And transfers that gold into a liquid and that gold is then recovered from the liquid by the next stage of the process, which is electrowinning. The carbon pellets are then reused but eventually, they become less good at absorbing and releasing gold and say they become -- you just can't continue to use them forever. We currently accumulate about 2.5 tonnes a month of loaded carbon at a grade of anything between 500 and 700 grams a tonne which the old dilution plan couldn't process. So the upgraded [ elution ] plant will process the accumulated stockpile between now and the end of the year, and that should release an extra 1,300 ounces of gold. That stockpile is exhausted, the increased capacity of the new [ elution ] plants means we should no longer accumulate activated carbon, which should add about 700 ounces of gold production per annum. Then the third and final lever is to address our controllable costs. We believe there are opportunities to try and reduce costs in certain areas. The first is labor productivity. Blanket employs about 2,500 people. The vast majority of whom are engaged in direct production. So that's drilling, lashing, [ trining ] and the engineering needed to keep the underground and the plant running. And to be honest, there's very little scope to introduce authorization or mechanization, but we can use our workforce more efficiently. So the shift system has already reduced over time by around 50% and has resulted in lower employee fatigue and higher production. We've recently installed modern access controls, so we can now develop more sophisticated shift in scheduling patterns, which means that workers get to their underground workplace as much more efficiently. The second area is to reduce our electricity consumption and improve reliability so that we have fewer interruptions to production and we make less use of very expensive diesel generators. 20% of Blanket's power come to a solar plant. And since 2020, we've reduced the percentage of power generated from diesel from 8% to 2% of the overall energy mix. And more recently, we've embarked on some really quite straightforward initiatives to reduce our power use, things, for example, turning off the compressors during the reentry period after each blast automated lighting and introducing solar eases to heat water. So in the second quarter of this year, we've used consumption, power consumption by 2.5%. We're also constructing a new power line to connect Blanket to the 132 kV network. And again, that should reduce the frequency and length of power outages, thereby avoiding lost production and further reducing our use of expensive diesel generators. And the third and final area is in the use and pricing of consumables. We're engaging with suppliers to get better terms, and we're more closely tracking our usage of consumables to see if we can achieve the same outputs by using fewer imports. So to put it all together, over the last 5 years, Blanket's costs have increased substantially, but we do now have a clear strategy to reduce our online costs, mainly by increasing production. And as I explained, we're currently finalizing the effect and cost and timing of some of these initiatives, which makes it very difficult at the moment to give clear guidance as to the -- when we'll begin to see these in accurate terms. We're also finalizing the timing of the start-up of oxide mining, both of which will affect production targets in 2027. So the current production target today for 2027 is around 78,000 ounces. This is included in the existing life of mine plan, which forms the basis of the last technical report for Blanket mine. We will publish a nice technical report for Blanket before the end of this year, I believe, before the end of October. And this will include all of the factors I've discussed and I expect revised production plan to be significantly higher than the current forecast. So with that, I will pause and hand over to Victor, who will talk about Bilboes. Thank you.

Thank you, Mark. I welcome you all to this presentation, particularly is excellency, Ambassador [indiscernible], thank you very much for coming along. I'll present to you the opportunity Bilboes was present to Caledonia and to the shareholders of Caledonia. Bilboes is a fully permitted large-scale project. As I have said, I've also been -- in fact, I've been President of the Chamber of Mines of Zimbabwe. And as Mark [ Sadd ], my family trust is a shareholder, single largest shareholder in Caledonia. So it demonstrates the commitment I have in terms of this business which we're building in Zimbabwe. We've recruited a project director at [ Macquarie ] is responsible for construction and delivery of the project. [ Admir ] is over 30 years of experience in mining and engineering, particularly in the areas of project management, operational efficiency and business optimization is held key roles at major companies in Zimbabwe like [indiscernible]. At Mimosa successfully delivered the expansion project to increase production in phases from 30,000 tonnes per month in the year 2000 to 235,000 tonnes per month in 2024. His expertise funds capital projects, equipment optimization and cross-functional coordination. The second person is [ Simbaci Meza ]. [ Simbaci Meza ] is the technical manager on this project. It is where going to Bilboes projects since the Anglo American days. Enjoying the Anglo American is a graduate trainee and rose through the ranks and become a mine geologist before becoming Bilboes' Technical Director. He was responsible for delivering the Bilboes definitive feasibility study before Caledonia acquired Bilboes. Under Admin [ Simbaci's ] a team of disciplined specialists who will work with the engineering, procurement and construction, EPCM contractor during construction and will become the disciplined heads when the project goes into production. John [indiscernible] the geologist on the project. He's got quite some extensive experience in with this group geology manager for Bilboes. In his formative years, John's under interiors graduate tranche with Anglo American corporation in Zimbabwe, covering both technical and leadership skills. He Is a highly experienced geologist with over 31 years in mining and the exploration, covering gold in [indiscernible]. John's multi-commodity exploration experience covers gold, nickel, copper, cobalt, chromite, iron ore, limestone, tenderlite, niobium and lithium. On the mining side, we have Blake [indiscernible]. He Is the mining engineer on this project. He's a seasoned mining executive. In fact, when we took over Bilboes in 2003, he was the mining manager in Bilboes. He became the Operations Director for that operation. He's got more than 25 years of experience in the mining industry, spanning both greenfield and brownfield operations at course Zimbabwe and other African countries. His expertise encompasses mining establishment, mining production, mine planning and budgeting, business turnaround strategy and the delivery of large-scale infrastructure development projects. We have successfully led complex mining operations in challenging environments and brings valuable export rate experience to use professional portfolio. [ Kasse Mafiri ] is the engineer on this project. He Is a highly analytical and performance-driven engineering professional with more than 30 years of experience in maintenance, engineering, project management, asset reliability and mining operations leadership. He successfully delivered major mining and processing projects improved maintenance performance, implemented engineering best practices, achieved 0 engineering accidents and led large-scale asset management reliability initiatives. As you can imagine, we -- the commercial aspects of these projects are huge. We've recruited the commission specialist, [indiscernible] is a capital project and supply chain professional with experience across mining and infrastructure projects in [ Botswana, Sierra Leone, Lesotho, South Africa ] and Zimbabwe. He brings strategic leadership, commercial discipline and execution focus to the project. On the human capital side, we've got [ Shamiss Masabi ]. She is a strategic human resources practitioners pour and experience across manufacturing, food processing, local government, private enterprise and the mining sectors. Leveraging expertise from the consultant background, [ Shamiss ] partners with leadership teams to build high-performing organizations. Foster engagement, workplace cultures and deliver sustainable business outcomes. On the metallurgical side, we have [ Obet ] [indiscernible]. He Is a metallurgical process engineer with experience in our minerals processing studies, plan design, commissioning and operations. His experience with a variety of minerals including gold, copper, cobalt and uranium. His expertise expanse -- his work experience is actually all of our Africa really, he's with in Zimbabwe, [ Botswana, South Africa, Sanely Senegal, Mauriciana and Burkina Faso ]. So he's quite experienced they are in control. He is also waiting for South African engineering companies in South Africa, mainly in process design or some large-scale gold and uranium projects. On the financial side, we've got [ Kutno ] [indiscernible] is a qualified chartered accountant with over 14 years of experience, including more than 10 years in the mining sector. Years extensive experience in financial management, financial reporting, risk management, internal controls and taxation with a proven track record of supporting business growth, improving governance and ensuring regulatory compliance. On projects like Safety Health and Environment is very important. We set up our business, make sure people go back to their families. We have [ Bondu Oliviera ] is an experienced [indiscernible] health and environment professional with over 20 years' experience in both sales, underground mining operations is expertise spans different minerals, including chrome, mining and smelting, old mining, mineral processing, occupational safety, environmental management and strategic leadership. He's passionate about fostering our strong safety culture, driving continuous improvement and leveraging technology and see management systems to enhance with his performance. Again, only a project of this scale, you need delivery partners. We've appointed [indiscernible] our EPCM contractor. [indiscernible] delivered the feasibility study for this project. They've built mines all over the world, and they've built all three platinum mines in Zimbabwe. That is [ Mimosa, Zinc, Latin, Unki ]. So [ DRA ] know how to deliver projects in Zimbabwe. So we have contracted them as our EPCM contractor. We are going to use the BIOX technology, and we've appointed [ Metso ] [indiscernible] who are the owners and suppliers of BIOX technology. They've delivered various BIOX plants all over the world. So we've got confidence in what they can do for us. We've also appointed [ SLR ], which is the South African best organization. They are the designers of the tailings storage facility. And they also looked after the geotechnical, geo-hydrological environmental water streams. We've appointed [ Cutfield ] Freeman of London is our providers of independent financial advice. We also have a leading law firm from the U.K. HSFK. They provide leverage -- legal cover for the project. On this, the funding is one of the most important aspects of this project for us to be able to deliver these projects. So we have a funding group, which is chaired by our CFO, Ross Jerrard, whom you'll be hearing from today. This group includes our financial advisers and our lawyers. We also have project support. This includes things like legal or risk management project controls. In terms of Bilboes' contribution, the Bilboes project will transform Caledonia into a mid-tier gold producer. With Bilboes was producing 200,000 ounces in 2029, which is picking off production and Blanket producing around 75,000 ounces in 2029. Total Caledonia production will be around 275,000 ounces in 2029. In terms of the production flow sheet, this is a conventional gold mine flow sheet really, starting with mining, crushing and milling, flotation, the biocide carbon in leach, elution in gold room with the final product being gold dore and tailings handling. In terms of tailings handling the tailings storage facility, there's the flotation tailings facility and the BIOX tailings facility. But again, it's conventional in any mining situation. In terms of mining readiness, how are we getting ready for delivering this project? On the mining side, we've done quite a lot of work in terms of geo-metallurgical data. We've collected that and added to the block models. Alongside the gold grade, we've done scanning of existing core samples at 1 meter intervals. This is scheduled for completion by the end of September. In terms of production sharing, this is underway and will be completed by December '26. The mining contractor, this is a large open deposit. The mining contractor will be appointed by July' '27 so that mining can start early. The plan is to ensure that it is a stockpile on hand by the time the process plant is commissioned so that the bank can run without interruptions. As far as the processing plant is concerned, I won't spend too much time on this. You can look at it on the [ Prussia ], which has been speculated. It's just the layout of the plant itself. You can see the various plants in there. Again, the tailings storage facility, we have discussed that the designs for the [ TSF ] commenced in July '26 and should be completed by February '27, with construction starting soon thereafter. The infrastructure of [indiscernible], [indiscernible] infrastructure is being contracted now so that construction can start on schedule in October '26. There's already powered Bilboes because this is really a brownfield project. During construction, this project will require about 2 MVA of power from existing infrastructure. Discussions with the grid power company are in progress and do you expect to sign the construction power contract by the end of October 2026. The bulk power scope of work has been finalized, and this work stream will involve construction of a 12 kV overhead line and two substations. The bulk supply contract should be signed by the end of December this year, with construction wake starting soon thereafter. In terms of water surety, as you can imagine, there's a lot of water involved in the processing plant like this one. The plan is progressing for implementation by the end of October '26. Accommodation in [ Eloix ] have been beta for with the EPCM camp location finalized in strategy of the [ Eloix ] team are already agreed. As far as the procurement and construction readiness is concerned, six critical packages carry the schedule with [ FX ] in power driving the October '26 construction starts. The grinding mills package is on track and was adjudicated in August with the or being done now mid-September, we're almost there. The thickness package is on track and was indicated mid-August with our expected mid-September. The crusher package is on track and adjudicated early September with the award to be made by October '26. The flotation sales package is on track having been adjudicated early August and awarded early September. The bulk [ FX ] package is on critical path with education having been done in July '26, and the contractor appointed early September. Actually, this one we've just signed and it was a pleasure having to sign the first contract for this project. The bulk power package closed in 11 September and is on track to be awarded end of November. The next slide really just shows in more detail the various procurement packages which we're pursuing. I won't go into it. You can also look at it in the brochure, which has been given. So what is our path to first gold? What has happened? In November 2025, the Caledonia Board approved the feasibility study. The study was approved and the technical and financial case was confirmed detailed engineering and [ Eloix ] are being completed in 2026. We are almost there, like I said, the last item is actually the [ TSF ], which will be completed very soon. The financing strategy is being executed in 2026 and early 2027. Ross will cover that in more detail in his presentation. The main construction will be during the period of 2021 to 2028. This will cover the Open pit development, plant power and water infrastructure. That's when the fun begins. The first ore to the mill will be September 2028, and first gold will be in October 2028. This project generates considerable value and this value accretive, in all three gold price scenarios evaluated in the Bilboes gold project, technical report summary, which was filed with the SEC and EDGAR in November 2025. It concerns us 3-year trailing average in September 2025 spot price outcomes have been published before. So I'll not talk to them. Our focus on the August 2026 spot price column, which shows that at an average gold price of 4,156 per ounce, the project is a post-tax MPV of $1.5 billion, a post-tax IRR of 58%, a payback of less than a year and an operating margin of 73%. And most importantly, an all-in sustaining cost of $1,145 per ounce. At this stage, I'll hand over to Ross to just talk about the financing, then I'll talk about the risks and other aspects of this project. Ross?

Thank you, Victor, and good morning to everybody. My name is Ross Jerrard. I'm the CFO of Caledonia, and I'm delighted to talk to you this morning about our fund strategy. It relates to the Bilboes financing and how we've taken it forward over the last couple of months. So as shown on this slide, the strategy has laid across four key pillars that have been deliberately designed to ensure that we have maximum liquidity as early as possible that we can deploy against the Bilboes project. This will ensure that we're able to place orders on long lead items and not delay any of those construction work streams. As Victor highlighted, with the One year payback period, the biggest value destroyer on this project is time delays. So we've ensured that we've got multiple levers in play and options available to us for the financing. So the four pillars shown are delivered in a deliberate sequence. The first is to secure gold price hedging across our share of the Blanket production platform. This hedging program really effectively sets a floor and basically underwrites internal cash generation that we could attribute to our corporate treasury war chest. The hedges of vanilla put options, which are active from January 2026 to December 2028, effectively covering the construction period. And it provides a floor that supports those internal cash flows both to us, but also in our discussions with the bank facilities. So whilst still allowing us full participation in any upside in gold price, so anything above $3,500 per ounce, we're not losing any of that upside. The program is basically an insurance policy. That's the way I view it. So without giving away the benefit of that gold price basically sets the floor underwrites that $3,500 per ounce level. So as well as securing the required cash flows that we generate internally. The hedging program allowed us to engage in open discussions with the financial institutions and elevate those prices used in the financial modeling when it came to discussing debt capacity across our blanket production and then the portfolio. So basically, we effectively increased the quantum of what we could go to the banks and ask to borrow. The second pillar was completing a convertible note offering of $150 million. And this program took advantage of strong capital markets here in the United States. And I must say surprised that's all to the upside. We were oversubscribed subscribed to the tune of some $600 million, showing strong investor demand at the time of the launch. The notes are at 5.8% coupon and are convertible after 2032. And together with an embedded cap call option means an effect of elevated conversion price just shy of $7 a share. Importantly, this second step allowed us to -- or gave us the ability to access cash quickly and continue to build our corporate war chest, whilst we engaged with the various banks. Knowing that the time rising to implement some of those longer-term funding strategies could take some time. So moving on to the third pillar, which included working with a consortium of local as Zimbabwe and South African banks to really position with an interim facility secured against Blanket mine cash flows. And this was really to provide a bridge in our financing needs whilst we looked at the longer-term traditional project finance facility. The co-leader ranges that we appointed with standard Zimbabwe and [ CBZ ] Bank. And the objective of this pillar was to use the Blanket mine cash flows to secure a $150 million facility that would either be repaid by the wider project level facility that was ultimately going to be put in place. And it was, again, effectively a bridge to ensure that we had enough funding in place as early as possible to place those early work orders. The work stream is well advised once, and we have been delighted with the interest shown across the whole bank consortium with potentially up to eight banks participating. And we're in the final stages of [ DD ] and documentation with the facility imminent and hopefully, we will get that closed in October 2026. So it's very close to finalization. And the final pillar is that traditional style stand-alone project finance facility which will be secured against bill Bilboes. Ultimately, the strategy was not to burden Blanket it with the Bilboes funding. We wanted it to stand on its own. And a formal process is well advanced with regional and global financial institutions with completion expected over the coming 6 to 9 months. So whilst pillars three and four have been running in parallel, the intention is that the interim facility would either be repaid by the proceeds from the project finance or the banks that are involved in that facility rolled up into that wider peer facility. So we don't anticipate having both interim and [ PF ] in place and operating concurrently. So whilst we are conscious of the time involved in getting that project finance facility in place, we've been classically surprised and really quite excited about how fast we have progressed with institutions. We've conducted site visits, the various [ DD ] work streams are well underway, and we enter that documentation phase. So we're really quite excited with the acceleration. Turning to the Bilboes' funding overview. This page provides a summary of the Bilboes' overview and really demonstrates that looking at the various pillars and functions, we're basically fully funded, particularly when you look at the innovator gold price scenarios. So the slide is best read from right to left. And the column on the right shows the use of fund. Essentially, we're looking to deploy just under $600 million when you include interest and working capital. And the two graphs on the left and center show the sources of funds at both $3,500 gold price, which is our hedge price and also at an elevated gold price of $4,000 per ounce. At $4,000 per ounce, $40 million less debt is required, funded by that higher forecast internal cash flow generation. And you can clearly see that together with our current cash on hand of $172 million, generated from our cash flows from Blanket of $115 million. And then in a higher gold price environment escalating to $155 million. The requirement for senior debt and other facilities are somewhere in the range of $263 million to $303 million. So quantum that we're very confident in achieving across the various work streams that I've just walked you through on the previous slide. So moving on to cash and available liquidity. Overall, the company has a very healthy liquidity is as demonstrated on this slide, with over $170 million of cash after the convertible bond raising, and the normal bullion on hand, gold sales, receivables, et cetera, that you would typically expect to see. We've only drawn $4 million of our available facilities collectively, we have in excess of $200 million already available in terms of total liquidity, as you can see at the bottom of the chart. A very strong position, and I'm very glad to see how quickly it's all come together. This slide shows the breakdown of our existing debt at blanket level, at the [ Zim co ] level and also at group level. So we have various loan notes in [ Zim holdco ] level that have been used for discrete projects. The construction of the solar plant in the past was used. And we expect to continue to roll these forward in the future allocated against specific projects. Like the powerline project, the upgrade of the main road or similar type project. So we're going to keep those loan notes in place. And at the Blanket mine level, the borrowings are really working capital ZiG facilities and traditionally, what you would expect from operations such as ours. The PLC level, we have recently placed a convertible bond that I've mentioned already. So across the group, we have a healthy level of debt. And certainly, the capacity to raise this further funding when you look at the cash generation that we have across the business and the future growth potential within the portfolio. We're very excited about where we are, both in terms of current financial health but also how we're positioned to finance the Bilboes construction in the short term. And I think we're in a very enviable position in terms of our project life cycle and the financing. And with that, I'll hand back to Victor to talk around some risks and mitigations.

Basically, any project, you have to look at the risks involved and are put in place the mitigation measures. There are basically three broad risk areas, which faced this project in our cover. The first one is technical risk, the metallurgical variability, we've done extensive metallurgical test work on this project, especially during the feasibility study phase, resulting in a determination of a robust blending system for plant feed optimal BIOX plant performance. As far as mining is concerned, the issue really is the strip ratio and mine plan. We've done detailed open pit optimization and pit designs with pushback strategy to manage this strip ratio in this project. As far as geotechnical conditions are concerned, [ SLR ] have done quite a lot of work in terms of geotechnical drilling and slope stability analysis. So we are fairly confident about that. As far as execution risk is concerned, this is where the highest risk sits actually. As far as that is concerned, Ross talked about -- in terms of having money. The time lays associated time delays, that's where we'll get quite a lot of leakage in this project into Ross and the team. We have done quite a fantastic quick in terms of putting in place an funds funding for this project, which will ensure on-time procurement. Capital cost inflation we've included the capital cost contingency with major cost items benchmarked during the feasibility study for this project, in terms of economic contribution to Zimbabwe, Bilboes will be a significant contributor to the Zimbabwe economy over the life of mine. If we calculate this at a gold price of just over $4,000, it will contribute over S6 billion in foreign currency over life of mine, over $300 million in royalties, over S975 million in corporate income tax and over $150 million in royalty and withholding tax. I mean, a project of this kind in any case is go to a significant multi effects, which means the other industries to create other industries to create the taxpayers. And as you can imagine, best on the World Bank and the [ IFC ] or the economic maple effect for mining companies, we estimate this to be 2 to 4x whatever Bilboes will be contributing. In terms of employment, this project will generate 500 operational jobs. These are permanent jobs during the life of mine. Skills development and training -- there will be skills development and skills transfer, thereby building technical mining capability for the future. There will be over 1,200 construction jobs created during the period. So that, ladies and gentlemen, is a summary of the Bilboes project where we are going with the Bilboes project and how it will have value. Thank you very much. Our call on Craig to give us something on the exploration. Thank you.

Thank you, Victor. Good afternoon, everybody. My name is Craig Harvey. I will see the exploration activities for Caledonia. So most people in this room kind of wonder what does -- it's not on here, what does exploration geology do? So basically, it is not a throw a dart at a dart board. It's -- we need to follow a structured approach. As our CEO has said, we are not a greenfield exploration company. We are Gold producer. So yes, we don't sit around at our Board, and that's not what we do. So we follow a clear strategy of what we actually want to do, what to only look at. And so it's not drill, baby drill, put a hole in the ground at any expense. So we have a structured approach. We have four strategic pillars that we look at. So quite clearly, Blanket being the mainstay of Caledonia at the moment. We have at depth. So we have below the current mine. We have inside the current mine opportunities that have been missed. We also have surface opportunities that our CEO alluded to. And that's at Blanket mine. It's at Motapa. It still includes Bilboes. I mean Bilboes is not finished. So with the deep drilling, what we kind of look at is we want to draw below the mine in structure that we have at the moment and prove up new inferred mineral resources that we can then upgrade via underground development further underground drilling and take that through into the measured and indicated categories, which ultimately lead into proven and probable reserves. The into ore body what we kind of mean by that test the lateral gaps, head and shoot structural repeats. So Blanket is a shear zone. It's not one shear, it's multiple shears. There are shears behind shears, there are shears that connect other shears. So we haven't really tested that to completion. But basically, in a nutshell, together these kind of four areas that we have from current producing to service exploration. It gives us a balanced pipeline across the whole various portfolio that we have. So we'll have a quick look at Blanket. So we have seen many locality maps on that, but the kind of key thing there is those green areas are the green -- the greenstone belts that are well known in Zimbabwe, we have a number of mineral resources that we have there. Blanket stays the op stays operating base. So anything that we do at Blanket, we've got to have stability at Blanket. We need to know that what our life of mine plan is saying is what we're actually going to do. Motapa as you know, it lies to the north of Bulawayo. It's directly adjacent to Bilboes, it shares a common boundary. We have now just recently declared a made a mineral resource estimate based on effectively 2 years of Caledonia exploration and collation of historic info. The Maligreen property, my colleagues kind of view the lost daughter, it might be small but quite clearly, once we have a processing facility kind of in the Bilboes-Matapa area, it's not that far always been trucked in Western Australia from the '70s into central processing plants and been toll treated for different companies. So our strategic objective is to advance these projects that we have that all in various stages into a pipeline in the next 5 years of what we can do and what we're actually going to execute. So looking at Blanket, just to go into a bit more detail. In order to maintain stability at blanket because it's kind of crucial for the company that blanket dives on what Blanket is supposed to deliver. These two images illustrate what the effect of deep drilling actually does. So when I talk about deep drilling, it's 300-meter deep holes blanket is a vertical ore body. So in order to drill it, you got to do some infrastructure development. And kind of -- the top image again, is pre -- well, it's pre 2023, the mineral resource estimate, all the big colors that you see there is the resource estimate as of 2023. And all those gray lines is essentially all of the long deep drilling that we've done. So after all of that drilling and included in the new Blanket update that we have done, we have grown the Blanket mineral resource from 0.5 million ounces in 2020 or 0.9 million ounces in 2020, M&I through to December 2023 to 1.8 million ounces and what we've just recently pushed out at 2.2 million ounces currently. The key takeaway here is that Blanket store remains open at depth. So it's kind of what's going to stop us going down there, well, it's going to be technical issues. So currently, what our focus is, is we need to maintain a 10-year reserve life. And so reserves measurement indicated that's converted into a proven and probable serve and continue exploring at depth. Currently, we are busy with a pre-feasibility study on what do we do after kind of 42 level. So 42 level is more or less at the bottom of the rigged smudge that you see there, which is going to be the current deepest that we're going to go at Blanket. So that's kind of the depth. The only problem with depth is that you can't of chase. So as we've heard, Blanket has been operating for 120 years, since 1904. And what has been a strategy, maybe not intentionally, but is kind of while we find it above us. So it should be below us. So let's carry on going down. And so it's level and leapfrog and get deeper. So what you kind of see here is -- well, there's actually one anecdote that I want to share. So during the independent struggle, Blanket was concerned about surface activities and surface attacks from whoever. So what they actually did is they developed a haulage on line level from the Blanket, which is on the -- it will be on your right-hand side across to the Lima ore body, and they developed it on nine level underground. And what actually happened is they blindly intersected what we know is [ AR Main ], which is the one kind of slipping in the middle. They didn't know about it. that wasn't known it wasn't picked up anywhere, before. [ AR Main ] has been a mainstay of blanket for many years, kind of the 1990s, 2000s, 2010s. So that leads us into the white areas that you see there. It doesn't mean that there is nothing there. The actual structure is there. It just depends on other conditions conducive to gold deposition within the actual share structure. So what we are doing, and we have been hampered by a lot of our underground drilling rigs are a driven. It's got connotations for compressed air, costly and things like that. But one of the key things is that it's limited to 100 meters drilling depth. So now on 30 and 34 level at [ AR Main ] -- we know [ AR Main ] is 150 meters into the [indiscernible] side of the drive. We actually can't get there with the current rigs that we have. So we have embarked on a drilling rig replacement program in we're going to bring in some electrohydraulic rigs, fairly small, fairly cheap but they can drill to -- depending on what size -- Powerpack you actually put in to between 300 and 500 meters. That's going to open up -- as you can see, all those lines, a tremendous area of potential. I mean, I can't say that there's anything there. But if you don't do the work, you're actually not going to know. The key thing is it's not new development to create drilling platforms. All of the infrastructure is there. We just can't get to the ore body. So we're going to drill it up. So that's kind of Blanket at depth, Blanket, selling Blanket but the upper levels, but there's still more to Blanket, right? So if we have a look here, we are going to evaluate [indiscernible] basis on strike. So it's a longitudinal section all of those pretty colors that you see is the current Blanket underground workings. We've heard of the CapEx. We'll go into that in a bit more detail later. But kind of to the north, within the current mining lease area, we have two other areas called [indiscernible] and old Lima. Now both of those, clearly, as the company, we have access to historical records. They have been mined sporadically across the years. ,[indiscernible] can sort of peg it to probably it's a gold price environment and things like that. But in today's gold prices, I can tell you that [indiscernible] is very much like Blanket. It's kind of the same with kind of the same grades. So we'd like to access that, do a bit of surface exploration to drill a bit deeper. There is a shaft there. It hasn't got a winder at the moment. But these are kind of things that we can have a look at to you heard our CEO talk about tonnes per meter. Now clearly, if you had 300 meters, it could be a very different story. So if we move on to a bit of near surface opportunities, which is kind of our strategy at blanket. So what you see on the left-hand side, that blue area is the blanket mining lease area, all right? All of the other little blocks that you see are claims that we have directly adjacent to our mining lease area. So one of the things that I always say, again, we've heard about Blanket has been operating for 120 years. If anybody has been to Blanket or whatever goes to Blanket, one of the things that you won't see is you won't see open pits, all right? You go to Bilboes, what will you see? You will see open pits. So it's kind of that was the strategy for Blanket at the time. We have historic sets on soil geochemistry. We have geophysical data over the Blanket area and it's rounding claims. We have a number of records from what I would turn wildcat drilling, put a hole in and let's see what we get kind of through the dot at the dartboard. But using all of this information that we've got, we have devised a structured approach to our surface exploration where we can follow up on a number of these targets and put a cross through an area. Or like the [indiscernible], we can put a big factory tick, in the context of what the [indiscernible] its can do for us kind of right now, that's highly encouraging. We have tested some other areas. You can see the [indiscernible] North area on the right-hand side of the image. We had a look at that. A couple of showings, not very strong -- so we kind of moved it north. So what our strategy is, is all along the surface because we kind of know where these structures sit. We know where the ban and our information sits. We know where the shares sit. So we are trenching on surface, long shallow trenches, oxidation levels at Blanket are kind of low, soil covers minimal. Out of all of those trenches anomalous areas showing anomalous gold values. We followed up with reverse circulation drilling targeted for oxide mineralization. Yes, the sulfide be lowered, but kind of right now, Blanket -- the underground mine has heaps. So better grades, it might be a bit more costly, but we can fill the plant with blanket. So going forward, we're going to run up all the way through old Lima, [indiscernible] on surface all the way into [ Gozani ]. And hopefully, we can report back with some positive news in the coming months and years. So if we look at -- and I'll just run through this quickly because we kind of saw a bit about the Cape. So what did we actually do? So at the Cape, we set over 2,000 meters on surface. We followed this up with close space, reverse circulation drilling line space 25 meters apart to an average depth of about 40 meters. And it was down to 40 meters simply, as I said, the oxide weathering profile at blanket anywhere between 10%, 15%, maybe some of the deeper areas, 30 meters. But you can clearly see oxide zones some of the intersections included 23 meters at 2.5 grams per tonne below the oxide zones into the sulfides now, some of the intersections included 16 meters at 6.04 grams, but grams per tonne, very much like blanket underground. So clearly, the oxide provides a near-term revenue opportunity. And let's not forget about the probable reduced mining cost, which can help with the overall cost of Blanket. But the deeper sulfides now provide a second opportunity. And why do we say that that's currently when we project the [indiscernible] ore body down into the bank working, the closest known ore body that we have underground is between 200 and 250 meters to the east, around the sheet shaft. So there's currently 30,000 measured indicated ounces in the [indiscernible] with a further 14,000 inferred. And if we then go on and have a look at what it actually means. So on the left, it's just an overview and a kind of a nice image of what it looks like, the drill densities and things like that. We are constructing. It's underway at the moment, a 10,000 tonne a month -- not a month, but a static 10,000 tonne heap leach test pad. We've completed a whole number of laboratory scale bottle roles, but we've also completed up to eight column tests, bloc -- box [indiscernible] column testing all very positive to date. So in the middle, that's basically a optimization that you see there. The pit shell within that pit shell, there's approximately 23,000 ounces using a cutoff grade of 0.3. So at 40,000 tonnes per month, we are looking at approximately a 2.5-year operating life just for that. Importantly, it's still open to the north. So it bent off our trench lines, but we know what we've got to have a look at. So it's not finished. On the right-hand side is just a small little section with an interpreted extension of where this would go underground, showing our sheet ore body next to the sheet shaft 300 meters away. So we are in the process of citing some surface gloves in the process of, as I said, getting some electrohydraulic rigs that we can also draw from 9 level and 7 level on blanket underground, and we need to evaluate that. If there's anything like 6-gram a tonne sitting 200 meters into the footwall side I mean, that's something that we're definitely going to be having a look at. So that's just Blanket, all right? So there is a lot more to Caledonia. So the whole greenstone belt, we have many opportunities. So we are located on the [ Gander ] Greenstone Belt a blanket host banner iron formation, shear zones, disseminated sulfides, various mineral types. So this geological diversity expands the number of targets that we have, both from a surface opportunity and from an underground opportunity. So all of our regional claims that we have provide a further pipeline. And so on the next slide, we've ranked what we term the regional claims. And it comes from -- these have been in Blanket stable for many years. There's been attempts to have a look at what is there. So clearly, our priority 1 remains the [ Kapit ], old [ Smiler ], Lima, which is in the blue block. And we'll carry on with our trenching strategy and reverse circulation drilling strategy. To carry on into the [ Zani ] block, and that's going to be 2026, 2027. [ Sundarela ], located kind of just to the left of [ Gander ], we've recently done a bit of work. It's on attribute at the moment. But the work that we've done has shown that in light of the current gold prices, they are well, are the on the top and north trend. It's approximately 1,500 meters there's a crow flies to the Bilboes plant. You can do your own math, you can do your own assumptions, but clearly, that's where the ore is going to go. So what did we do? In 2023, after [ AquaVision ]. We did a data gathering exercise because it is a brownfields area. It has been mined. There is a historic leach pad that there was oxide mining activities in the late '90s. We did a LiDAR survey for topography. We did an [ Aeromag ] flight and we did some ground penetrating radar. 2024 accelerated. We did almost 13,000 meters of surface trenching, which is represented by those red and light blue vertical lines. We did about 4,500 meters of diamond drilling, and we did a further 5,000 meters of reverse circulation drilling. This will spread over the project to get an idea of which areas are our prior authority. Coming into 2025, we managed to squeeze out an expanded exploration budget. And that resulted in us doing 22,000 meters of surface trenching. Following up with 1,500 meters of diamond drilling and about 18,500 meters of reverse circulation drilling. So all of this has culminated in the last 2 years of active work in a measured and indicated mineral resource estimate of approximately 379,000 ounces and an inferred resource estimate of about 131,000 ounces. The implied discovery cost, so not with acquisition, but discovery cost only for what we have spent is approximately $15.8 per ounce for M&I and approximately $11 per total mineral resource out. So put it into context with acquisition costs of the industry out there, people are paying anywhere from $40 up per ounce -- per total ounce for new properties, for new projects. We are advancing this. And as the resource base grows, I mean, clearly, that's going to drop. And that number is actually going to get less. So just to give a very simplistic quick overview of what the minor resource estimate looks like. So the big slide that you see there is Motapa North. The mineral resource that has been declared is approximately 80% is on Motapa North. There's a small portion that came out of Motapa Central, we only started drilling that late. It's been defined through a combination of surface trenching ripping the old pits -- on the pit floors and as you know, a combination of reverse circulation drilling, diamond drilling. That's all been independent assay work and everything like that. So the top right-hand image is just a simple section through essentially what the ore bodies look like, let's say, multiple share system. Again, it's very, very common in the Greenstone Belt of Zimbabwe. It's not one simple shear. It's a multiple shear system, exhibits a bit of pinch and swell. And that image clearly shows the surface topography of where the open pit oxides have been mined and what we're kind of looking at. The bottom image is just a block model image with some grades there. So you can see that we do have some high-grade areas. And this mineralization in kind of moves between the shear zones, the pinch and swell. So some good grades, some moderate grades and drilling will continue. So on the last slide, just what we have planned for Motapa. So we have had a look at essentially Motapa North. We're not finished, we still need to do some infill drilling. There are some areas that are not classified as a resource as yet. We still need to put some more holes in, the resource is down to 190 meters below surface. There's possibility to take that down a bit further. So Motapa North ongoing, the area marked as number 2 is what we like to call Motapa Central. So we have [ Pudsey ], which is a branded information or cropping on surface, has not been historically mined in the context you see a visible open pit. There's been a bit of artisanal working, we are looking at the pits at the mineral resources below [ Britell ] and [ Fosika ]. From there, we have commenced in 2027. We are having a look at Motapa South, drilling below half day and trail. One of the exciting things that we want to able to look at is kind of at number 4. So number 4 is the Northeast extension of Motapa South. There is no historical open pit on that area. You can see that we have trenched the area. We have put in four reconnaissance holes, and so that is on the table for 2027. And so what I said about three dots. So analyzing all the data that we've got, the smaller area market is number 5 is a new area that we have found. We've confirmed it with surface trenching. Currently, it's approximately 250 meters long, about 80 meters wide on surface. We have put in some reconnaissance holes. I mean, I cannot tell you what the values are of public information at the moment. But that's going to be a further area that was not initially considered. So the exploration program at Motapa that provides a meaningful resource growth opportunity. that really potentially is probably the perfect bolt-on to the Bilboes property that we have. So exploration in Caledonia is healthy. We have multiple opportunities, both near term. And as you can see, we have multiple opportunities both long term. So with that, I'll hand over to the CEO. I'll take us to the next section.

Thank you. Thank you, Craig. Well, I think just to bring an end to this part of the session. We'll just run a very quick video on ESG. This has been read by [ Colleen Parkes ], who is our Head of our ESG based in Johannesburg, and it shows some of our ESG initiatives. Environmental and social considerations have always been important to our operations. But over recent years, we've done a lot of work to refine and expand the scope and scope of what we do in both areas. Importantly, we've also substantially improved the way that we communicate these activities so that stakeholders have a clearer understanding of the impact that's being delivered across the business. So I think with that, does the -- does it start organically? Don't press something? [Presentation]

Okay. Well, I think that brings it in to the formal presentations. Can I suggest that we stop there? Pause for coffee, when we come back Ambassador [indiscernible] will give us a brief address, and then we can take the floors completely open for discussion and questions, okay? So I think we should pause there and have coffee now. So if that okay? Thank you. [Break]

Let me just recap what we've heard this morning then. Before I hand over to the Ambassador. Maurice, gave us a brief presentation, we showed that our focus on Zimbabwe was part of a disciplined and systematic strategy, and it wasn't something that happened by accident. I then spoke about Blanket. I highlighted the historic increase that we've seen in our online costs and set out the general strategy that we're adopting, which is primarily based around increasing production to get those costs down again. Then you heard from Victor, who gave some very clear milestones as to the development activities and the progress at Bilboes and set out that we've now created a team to implement the project. We're well advanced on the procurement and it's now the project is on its way. Ross told you how close we are now to finalizing the financing package for the Bilboes project. And then finally, you heard from Craig, who touched on exploration of Blanket, which is such a new horizon for us. And Blanket got exploration potential, both at depth and in the shallower areas. And so for a mine that's 120 years old, it still has great potential, both at this current production level and we hope, much higher. But also the very exciting exploration potential at Motapa. So that's what you heard this morning. I will hand over shortly to the ambassador, the Zimbabwean Ambassador to the United Nations here in New York, Ambassador [indiscernible], before I do that, I'd just like to give you five fun facts about Zimbabwe. Now the first is inflation. Clearly, people have got a perception that Zimbabwe is an inflationary environment. Inflation is above was currently 2.9%. And yes, annually, yes. Thank you, Howard. U.S.'s 3.4%. And when I wrote this, the U.K. was 2.9%, it's now gone up to 3.2%. So Zimbabwe is by no means the high inflation environment that people expected. The currency is stable over the course of the last year or so, the ZiG has been within a range, a trading range of plus/minus 4.4% against the U.S. dollar. Zimbabwe is currently running a balance of trade surplus. In August, the World Bank removed Zimbabwe from the list of fragile and conflict-affected economies. And finally, last year, the Bubba's economy grew at a rate of 8.3% GDP. So with that background, those rose the opening comments, I'll hand over to his excellency the Ambassador to make a few words. Over to you.

Ladies and gentlemen, before the Ambassador comes, I'll just introduce him briefly. Thank you, his excellency Ambassador [indiscernible] is the ambassador and permanent representative of Zimbabwe to the United Nations here in New York. Ambassador [indiscernible] is a senior Zimbabwean Diplomat with extensive experience in multilateral diplomacy international trade, African affairs and government. Before his appointment to the United Nations in New York, he served in the office of the President is a cabinet as Head of the President, Secretary and Chief of Staff. He previously served as Chief Director of [ Mallerais ] in Minister of Foreign Affairs in the international trade. From 2020 to 2022, he was Zimbabwe's permanent representative to the African Union and [ Unica ] in [ AdisAbaba ]. He also served this Zimbabwe's permanent representative to the UN office in Geneva and the World Trade Organization alongside earlier diplomatic assignments in Beijing and London. He holds a masters and honors degree in economic history from the investor of Zimbabwe with postgraduate qualifications in management from the University of London and diplomacy and international studies from the University of Nairobi. His career across the UN, African Union, WTO and government of Zimbabwe gives you an extensive experience in Zimbabwe's foreign policy in the engagement with regional and international institutions. We are honored to have you Ambassador and we do acknowledge the support which we receive and the close working relationship which we have with the government of Zimbabwe and the support we've been given over the years to be able to get to this milestone and to be able to take this forward. Thank you very much. Please come forward. Thank you.

Well, thank you, Victor, for that introduction, and thank you, Mark, for doing some of my work for me in terms of all these statistics about Zimbabwe. Let me start by also recognizing some of the board and management of Caledonia here and also the distinguished investors, analysts and eloping partners that are here and those that are following us online. I'm really honored to deliver some remarks on behalf of the Minister of Mines and mining development, honorable [indiscernible] who regrettably could not join us today, really wanted to do this, but I'll do this on his behalf. It is really a privilege for me, we normally address diplomatic gatherings, political weathering but for me, it is really a privilege to be addressing an audience that makes the decisions to allocate capital, to price risk shape investments measured in decades in terms of the mining industry. So I really want to commend Caledonia Mining for convening this important capital markets event. Blanket mine, as we have already had, which is located in Zimbabwe's renowned [ Guanda ] Greenstone Belt, produced 76,000 ounces of gold in 2025, while the Bilboes and Maurice Mason continue to advance their development was production. Caledonia's experience is compelling evidence of what patient capital and solid management and long-term commitment can achieve in Zimbabwe. This will really be the thrust of my presentation this morning. As our President, Dr. [ Edim Nagawe ] consistently affirmed that Zimbabwe is open for business, and mining is central to that vision when we say Zimbabwe is open for business, and will remain a key pillar of Zimbabwe's economy and our development pro print the National Development Strategy 2, which was spun from 2026 to 2030. Zimbabwe is endowed as we have had with more than 40 exploitable minerals. The great [indiscernible], which was disclosed earlier on to look our intrusion both significant amount of platinum group of metals, reserves and alongside the gold, silver, chrome, and nickel, among others. And Zimbabwe also holds Africa's largest lithium resources in addition to diamonds, core, rare earth elements and so forth. But what makes the opportunity particularly compelling in terms of looking at Zimbabwe is that this mineral world remains under-explored by modern day standards. In a world of maturing mining jurisdictions, Zimbabwe offers both established and large-scale deposits and also genuine greenfield potential. In the first half of 2026, Zimbabwe's mining sector generated approximately $5.7 billion in mineral export earnings. And we stand at that quite a large amount excluding gold and silver exports grew by 84.7% compared with the same period in 2025, placing the sector on course to surpass last year's record. So we've been reaching records in these past years in terms of our mining industry. And our investment framework rests on three principles: first, policy stability. Mining projects are measured in decades, as we said earlier, and investors must be able to plan and deploy capital with confidence. Second, competitiveness. Zimbabwe is among other countries that compete for global capital and we have to continue to benchmark our fiscal and regulatory frameworks against leading jurisdictions. And third, issues of transparency and partnership. We're improving coordination across government, streamlining licensing, meeting and also greater clarity on regulatory requirements. And government is also modernizing the Zimbabwe geological survey through digital technologies, through remote sensing, artificial intelligence, alongside a national airborne of geophysical survey to provide investors with modern geoscientific data. And the [indiscernible] [ cadastre ] system is also being completed to ensure a transparent, efficient and verifiable administration of mineral titles. Zimbabwe emits 100% foreign ownership across all mineral sectors, providing a clear and open framework for international investment. This is one of the questions that was asked earlier about ownership structures, and I was saying this time, ownership is open. But our -- of course, always encourage some empowerment schemes. And in our employment approach emphasizes local procurement, skills development and community partnerships, alongside value addition and issues of beneficiation. And on that, in terms of beneficiation, Zimbabwe received Africa's fifth better grade lithium sulfate, from one of our mines called Acadia in lithium mine, with additional processing capacity. We think we can move further to lithium carbonate and other mines like one, it came to in mind, also processing lithium and one of the oldest lithium mines called [ Kitaminerals ], they are also building their own processing capacities. So this is the trend in Zimbabwe, we are pushing more and more the issues of beneficiation. In a place called [ Magnis ], where we have steel complex, iron ore is being transformed into steel. And these developments are creating opportunities for investors to capture greater value downstream within Zimbabwe in terms of value addition. In terms of investment, is that we are also advancing across issues of feasibility, construction and in production, well brownfield expansions and the critical mineral projects are also increasing output and increasing -- increasingly integrating Zimbabwe into the energy transition and supply chains. With global demand for critical minerals raising in supply chains, the diversifying Zimbabwe is well positioned to benefit from these trends. So this growth must also be responsible growth. So our motto that is in the Ministry of Mines is "A sustainable mining, our legacy". So this reflects our commitment to issues of environmental compliance progressive rehabilitation, safety and genuine community benefit. So I want at this stage to comment Caledonia in terms of the solar investment in Blanket mine and there for their community projects, which we saw in the video. So ladies and gentlemen, as Zimbabwe mineral endowment is well established. Our policy direction is clear and government is committed to being a reliable and predictable partner. We welcome investors who see Zimbabwe notice a short-term opportunity, but as a long-term mining destination with the of global capital. And Caledonia is demonstrating that confidence through its long-term presence and this contribution both the mining sector and the communities in which it operates really is a way to go. So I mean this partnership continue to deliver a mutually beneficial returns well into the future. So to those who are not yet invested in Zimbabwe, my invitation is simple, take a serious look at Zimbabwe, put your stakes in the mining sector whose [indiscernible] is forecast to be strong with a future that is promising. So with that, I really want to conclude and thanks once again to Mark and Victor for this opportunity to address this audience. Thank you.

Okay. I think we now move on to discussion and Q&A. So if I can ask the management team to come and occupy is fetching bar stools. I think we'll take queries from the room. And to the extent there are queries being typed in online, those I'll be someone who will tell me what those are, and then we'll allocate them and deal with it accordingly. Okay. So it's probably easiest if we start in the room first. So if you have a question, please put your hand up, we'll do it the normal way, Howard?

Yes. So thanks for hosting this Capital Markets Day is very, very good presentations. I did have a couple of questions. First one is, it sounds like you're very close to finalizing that $150 million interim facility that will be secured against blanket because you're so close to financing and my question is, can you give me any color on what the tenor of that facilities might look like in interest rates? And just kind of want to stack it up versus maybe the cost of capital on the convert.

Thanks for the question. We're very close, and we're going to do a public announcement on it. The interim facility is all about this bridge. As I said, said it's really looking at 3-year time horizon, whether we actually use that whole tenant horizon, we'll see in terms of timing of the other facilities that are there. I think it's -- at this stage, whilst it's very close be reluctant to give you pricing on that in terms of where it sits. But we're actually very -- we're actually delighted in terms of the cost of those facilities at that time, but I don't want to name it.

I would just point out, we should be looking at the cost of various forms of funding compared to our cost of equity. And I'm hoping Maurice is listening, our cost of equity could be anything up to 40%, 45%. I don't audits at the moment, even higher, even higher. So whilst I'm not -- I wouldn't for a minute and say that we're indifferent just to the cost of the funding we're going to get through the interim facility. The comparator is the alternative being equity. And just -- it just drops completely. That's all I can say.

Question on -- my second one was that at Bilboes that's obviously going to be the company maker for Caledonia. I'm curious, where does that stack up versus other large capital projects in Zimbabwe in terms of size, scope, potential government revenues. And I don't mean just mining project, could be infrastructure, energy, anything. Just kind of curious where that would stack up?

The other big project that's happening at the moment is the [ Karo ] project. Victor, you've got more context on that?

Yes. The [ Karo ] project is a platinum project within Zimbabwe. But if I just look at the other investments which have taken place, obviously, at the moment, the biggest mining investment in Zimbabwe has been [ Zimplats ], right, on the platinum side. We've had now the lithium mines coming up, like [ Acadia ] -- I think someone talked about -- the Ambassador talked about [ Acadia ], a big investment, which has taken place. There is also, for instance, the Ambassador also talked about [ Manise ], which is the steel plant, actually quite huge. On the gold side, this project is probably the biggest one going on at the moment, which also just shows the potential for Zimbabwe in terms of other projects to come through.

I think it's not just the dollar CapEx spend. I think the thing that marks out the Bilboes transaction is a strong economics. Super fast pay around a turnaround in terms of moving in from the government's perspective, turning into a taxpaying perspective. So I suspect we're substantially bigger than the others from that perspective. Any questions online? Scott?

A lot of questions online. First question is, do you see any problems on improving heavy equipment -- sorry, importing heavy equipment in the new mine? Timeframes as well as logistics.

We don't see any issues in our importing equipment into Zimbabwe. All this equipment, which comes into Zimbabwe, if it's a mining project. It's actually in Q3. So you can import quite easily. Probably the logistics of moving it from where it is. But what we have done is to go out early in terms of the contracts because obviously, shipping terms of increased since the Middle East conflict or even since COVID really. So we have taken a deliberate move of actually going out to the market earlier, and Ross mentioned the importance of far actually putting in the capital in place, the financing in place, which is what we have done. And the long lead items, we been placing orders now and we paying deposits for those -- so we don't see any problem in moving heavy equipment into the country.

We move equipment to Blanket all the time across borders, and we -- I'm not aware of any significant difficulties getting stuff into the country, either from South Africa or elsewhere. As Victor says, the biggest issue that we faced has been on the high seas. Things being delayed and things been delayed coming from a long, long way away more things being delivered at [ Durban ] docks and then being dropped and broken. But that's nothing to do with getting things into Zimbabwe. That's just a general run of business issue.

[indiscernible] question, Mark. At the end of the day the Zimbabwe government is very supportive of capital projects. The cap of support we get from the Ministry of Finance, Minister of Mines, Minister of Environment, everyone in the chain. They are really supportive of our big projects like this because, obviously, they generate a lot of foreign currency, the generate employment generally. So that's...

Casing point there would be the solar project where we imported sort of $15 million worth of very visible kit and equipment and the Zimbabwe government facilitated that being transferred seamlessly through the border, so it was a really very good experience.

Maybe a similar sort of question. But what has improved in Zimbabwe's investment environment what still needs to change?

Victor, do you want to go first before I -- do you want to go first? .

Generally, if you look at -- in terms of the policy environment has improved, the lot stability. Mark did talk about the inflation environment, which has really stabilized. He's talked about the exchange rate. That's really stabilized at the end of the day. And the kind of policy support which the government has been giving to industry to make sure that things go that has really improved quite a lot. The issue of foreign currency remittances, if you have loans or if you want to remit dividends that has improved quite a lot, especially if you're an exporter because you're aiding your own foreign currency. So you can naturally export money, pay dividends, pay loans and things like that. So that environment has improved quite, quite, quite a lot.

Yes. So there's been a liberalization in the foreign exchange regime. Clearly, we'd like to see that liberalization go further. But our engagement with the governor of the Reserve Bank and the Ministry of Finance gives us a high degree of comfort that, that liberalization is on its way. So I guess it really comes down to the daily business of the bureaucracy. It is -- there is a bureaucracy to go through to do things. And that's simply just making sure that you press the right buttons in the right order. We're very, very good at that. having operated in Zimbabwe. I personally can't say if that bureaucracy is any worsens Zimbabwe than it is in other jurisdictions, I don't know, but we managed to make it work. So again, it's more -- it's just process, it's not an obstacle.

And if I could add the second part of the question about what needs to change. I don't think it's about change. I think we would be looking for consistency. So all we want the goalpost to remain the same. Talking about that long-term tenor visibility over the long period -- longer term and just being able to plan that.

Another a good example I can give, as a gold producer, we are required to -- once we produce gold to send it to Fidelity gold refinery to refile and then Fidelity -- we used to sell to Fidelity. So now, all we have to do is if we produce, we send to it. Fidelity is the gold takes all those impurities and gets it to 99.94% in terms of purity. When we export that bold, although we exported using Fidelity's license, we export to a customer for our own choice. So the money -- the foreign currency comes directly into our foreign current account. So if you're borrowing offshore, like we're going to do for project finance. What it means is offshore, we can establish an offshore collection accounted an offshore debt service account, which ensures that the financials actually assured that the money doesn't have to go to Zimbabwe and come back out. It's out there. They just crib their portion, which was into the debt service account, and then we pay off the loans. So that's improved quite a lot, and it has made it much easier for us to negotiate with the project finance teams or even in the best several years now.

Yes. So that's not new news. We've been doing that for several years. And I'm going to say delivering our goal first to Fidelity for refining is by no means burdensome, they're extremely good at taking out some quite difficult impurities, which when we used to export directly ourselves caused all sorts of difficulty. And it cuts clean through any debate about how much gold we produced because they don't have that we produce because they refine difference. So it's a very clean set up, we like it. Any further questions here?

Next question is, where are you selling gold through currently? And has it moved to selling export to gold through South Africa, change the risk profile? And do you expect to return to the Middle East export route?

We'll continue to export to the Middle East and to South Africa, and we would as far as possible have as many routes to market as possible, because clearly, we delivered a consignment to South Africa on the 29th of June, hoping to sell it on the 30th of June, and it got stuck in a warehouse because there was what you could only describe the civil interaction in South Africa. And clearly, there's been the events in the Middle East as well. So our objective would be to as many, many different routes to market as possible to give us maximum flexibility to be able to cope with any unforced eventualities.

Next question is, what is the status of the royalty situation in Zimbabwe given the proposed changes to royalty structure in late 2025? And can you also comment more generally on the broader fiscal stability up to and beyond delivery of Bilboes investment?

Do you want to talk about the royalty? I mean, I think we've been very clear. And this is -- this issue about the royalties is old news that's been put to bed very comprehensively many months ago late November, the Zimbabwe government published a budget proposal, which included a proposed increase in the gold royalty rate from 5% to 10%. And that was -- we were horrified. We've not seen that coming. It was -- it came as a real surprise. We engaged with the government immediately and within a matter of weeks, a situation that had been resolved. The royalty rate returned back to 5% and will only go to 10% if the gold price exceeds 5,000. We'd still like to engage with government to see if that cliff edge increase can be modified. But I think again, the permanent secretary from the Minister of Finance stood up at an event we did in Cape Town in February, it was extremely transparent about this. He may eat to paraphrase and he said that the increase was an unexpected development, it was a mistake. And the critical thing about the Zimbabwe government is that having recognized the mistake, they corrected it very quickly. And I think we'd agree with that wholeheartedly. So we don't see any diary ore with the royalty rate. And the tax regime has been super stable for as long as I've been at Caledonia. So again, we don't -- tax changes to the overall tax regime is not something that we worry about, Ross?

Again, an earlier point about stability. So the tax regime is very beneficial. It hasn't changed over time. And particularly with the tax deductions for mining operation, they're very conducive. So we're very happy with what we've got from a tax regime and status quo.

So I can see as got a question here in the audience?. That's the way we took it. Yes. So Howard's saying has linkless saying that long-term gold price of $5,000 is a high-class problem. That's exactly the way we see. But having said that, we would like to get a more sort of sensible smoothing of any phased increase of the royalty rate at the higher gold prices. And so you've got a cliff edge at sort of $5,000 and $0.01, that's all we'd ask.

The government offered to lend any part of that $150 million?

No, we wouldn't ask. We don't need it, no. We're completely comfortable working with the commercial sector. Another question in the room here?

So I have one question for Blanket and one question for Bilboes. So on the Blanket, if I'm not mistaken, the current estimate for the 2027, the guidance is still 75%, right?