Orest Wowkodaw • Scotiabank

Answer

President and CEO Peter Kukielski stated that the company is entirely focused on the fully permitted Phase 1 and is not in discussions regarding Phase 2 (Rosemont), though he noted the current political environment is constructive. He acknowledged the likelihood of modest CapEx escalation due to inflation but emphasized this is offset by a more bullish long-term copper price outlook, and confirmed no major scope changes are planned.

Ask Fintool Equity Research AI

Answer

President & CEO Peter Kukielski expressed confidence in the repeatability of recent performance. COO Andre Lauzon elaborated that their strategy of using pebble rejection on harder materials has been successful, sometimes pushing throughput over 100,000 tonnes per day. This strategy also improves grade and tests downstream capacity ahead of planned pebble crusher installations. Lauzon noted he would confirm the exact regulatory baseline offline.

Ask Fintool Equity Research AI

Answer

President and CEO Peter Kukielski explained the guidance reduction was due to mining dilution and ore losses at Pampacancha, for which the company has now applied conservative resource-to-reserve conversion factors. He also noted that some high-grade gold benches were pulled forward from 2025 into 2024. COO Andre Lauzon added that the updated models are prudent and may offer potential upside.

Ask Fintool Equity Research AI

Answer

President & CEO Peter Kukielski and COO Andre Lauzon responded, explaining that production is weighted to the second half due to planned stripping. Lauzon detailed that Peru's copper grades will increase in late Q3, with a significant rise in Q4 to the 0.55-0.57% range as they access higher-grade benches at Pampacancha. Regarding Maria Reyna, Kukielski clarified that the EIA approval is the first step, and it typically takes another 12 months to secure all necessary permits to begin drilling.

Ask Fintool Equity Research AI

Answer

President and CEO Makko Defilippo responded that Tucuma is no longer facing fundamental bottlenecks but is now focused on achieving operational consistency through preventative maintenance. He confirmed the Pilar shaft project is progressing well, having reached roughly halfway to its target depth, and remains on schedule and on budget for a 2027 commissioning.

Ask Fintool Equity Research AI

Answer

President and CEO Makko DeFilippo stated that the major identified bottlenecks at Tucuma have been substantively completed, with no major downtime anticipated outside of routine planned maintenance. He confirmed that while power oscillations on the grid persist, the implemented solutions have minimized disruptions to a level that is no longer considered a major bottleneck for the ramp-up, though a permanent solution is still being designed.

Ask Fintool Equity Research AI

Answer

President and CEO Makko DeFilippo confirmed that while some power quality oscillations persist, plant adjustments have significantly reduced mill trips from 15-20 per day to just a handful per month, with a permanent off-site solution expected by the end of Q2. He stated there are no other notable impediments and that guidance reflects ramp-up uncertainties. To protect liquidity, DeFilippo highlighted the company's expanded credit facility and noted flexibility in adjusting the Furnas drilling program and Xavantina's capital spending.

Ask Fintool Equity Research AI

Answer

COO Makko DeFilippo stated that while it's early, Tucuma's concentrate grades are above design and throughput is at 40-50% of capacity. CFO Wayne Drier explained that Q3 will see partial expensing of costs against initial revenues. CEO David Strang confirmed the 2025 priority is deleveraging the balance sheet. Makko DeFilippo detailed that Tucuma's CapEx increase is due to non-recoverable taxes and accelerated ramp-up costs, while Caraiba's decrease stems from synergies in tailings management.

Ask Fintool Equity Research AI

Answer

CEO Ignacio Rosado reiterated that the Aripuana commissioning timeline for Q2 2026 is unchanged and that the 2026 production guidance remains firm. CFO José Carlos del Valle Castro explained that the Q1 negative working capital is a typical seasonal event due to large annual payments and that, consistent with prior years, he expects the entire amount to be reversed by year-end, resulting in a neutral working capital impact for the full year.

Ask Fintool Equity Research AI

Answer

CEO Ignacio Rosado confirmed Aripuana is operating at approximately 90% capacity due to filter limitations. A fourth filter, costing $12-14 million, is being acquired, but its 10-14 month implementation means throughput will remain constrained through 2025. He stated that updated 2025 guidance would be provided in January.

Ask Fintool Equity Research AI

Answer

Executive VP & CFO Grant Isaac explained the guidance is conservative and excludes new build projects that have not reached a Final Investment Decision (FID). He stated that once projects in Poland, the US, or elsewhere reach FID, the outlook could rise significantly. Regarding the IP payments, Isaac clarified they are tied to new builds led by Korean partners, citing the four-reactor project in the Czech Republic as a source for similar future payments.

Ask Fintool Equity Research AI

Answer

Executive VP & CFO Grant Isaac stated that while cash flow is strong, the company remains financially conservative due to being in supply discipline, as the uranium market has not yet reached replacement rate contracting. He prioritized risk-adjusted growth opportunities across the fuel cycle before considering enhanced capital returns. On the Westinghouse settlement, Isaac explained it transforms the relationship with Korea from competition to collaboration, opening new markets like Czechia for participation and growing the Energy Systems business. The financial impact is tied to future final investment decisions.

Ask Fintool Equity Research AI

Answer

Executive VP and CFO Grant Isaac clarified that while older contracts presumed free trade, newer contracts explicitly define tariffs as a tax in the buyer's country, making it the buyer's responsibility. For older contracts, Cameco has mitigated risk by prepositioning material. He stated the tariff threat is largely irrelevant to current negotiations because U.S. demand is inelastic and requires imports, though it may influence Cameco's long-term market diversification strategy. President and CEO Timothy Gitzel added context on the U.S.'s high import dependency.

Ask Fintool Equity Research AI

Answer

President & CEO Jonathan Price stated the expectation is to resolve the TMF development issue in 2025, so it will not constrain 2026 operations, for which guidance is maintained. He added that no additional capital investment is expected for this issue next year. Confidence in 2026 guidance is based on observed operating parameters (throughput, recoveries, grade) when the plant is online, assuming the TMF constraint is removed.

Ask Fintool Equity Research AI

Answer

President & CEO Jonathan Price stated that the TMF development work is a one-time ramp-up issue expected to be resolved in 2025, and therefore should not constrain 2026 operations. He affirmed confidence in the 2026 guidance, noting that the operation has demonstrated the required parameters, and no additional capital for the TMF is expected next year.

Ask Fintool Equity Research AI

Answer

CEO Jonathan Price clarified that achieving steady-state operations by year-end was always the plan for 2025. He confirmed the guidance of 230,000 to 270,000 tonnes remains, albeit at the lower end, due to additional work on the tailings facility. Price stated that the required downtime is factored into this guidance and that the issue is a one-time event that is not expected to impact 2026 guidance.

Ask Fintool Equity Research AI

Answer

CEO Jonathan Price confirmed the QB2 ramp-up is progressing well and in line with benchmarks. He stated that the extended 18-day January shutdown was fully factored into the 2025 production guidance of 230,000 to 270,000 tonnes. Post-shutdown, the plant is operating as planned, and the company is confident in its guidance. For future maintenance, he indicated that quarterly shutdowns of approximately seven days are expected, with no other extended shutdowns planned for the year.

Ask Fintool Equity Research AI

Answer

CEO Jonathan Price acknowledged the 2024 guidance reduction was driven by lower grades but noted strong progress in mill throughput. He stated the 2025 guidance is achievable, with the wide range reflecting ramp-up uncertainties. COO Sherhzad Bharmal added that recovery challenges with transition ores are being addressed with new reagent strategies, and clarified the 86-92% recovery target is for the life-of-mine, not a specific year.

Ask Fintool Equity Research AI

Answer

President & CEO Kathleen Quirk confirmed educational discussions with government officials about Freeport-McMoRan's domestic role and technology. She mentioned their advocacy for adding copper to the critical minerals list to receive IRA benefits, like a 10% production credit. However, she stated they are not currently aware of any tariff exemptions for refined copper from their Spanish or Indonesian assets.

Ask Fintool Equity Research AI

Answer

President & CEO Kathleen Quirk confirmed educational discussions with government authorities, highlighting Freeport's advocacy to add copper to the critical minerals list for IRA benefits. She identified the Leach initiative as the primary near-term opportunity for U.S. refined production growth. Regarding exemptions, she stated they are awaiting implementation details and are unaware of any at this time.

Ask Fintool Equity Research AI

Answer

President and CEO Kathleen Quirk explained the 2026 guidance includes discretionary spending for the Bagdad tailings expansion and LNG projects, which could be deferred. She affirmed the company's commitment to capital discipline. For a future run-rate, she estimated sustaining capital would be in the order of 2% to 2.5% of revenue, excluding major new projects.

Ask Fintool Equity Research AI

Answer

President and CEO Kathleen Quirk agreed that the proposed cost ranges were directionally accurate but emphasized the significant potential of the innovative leach initiative to lower the U.S. average cost by adding incremental production at under $1 per pound. She stated the company's target is for North American costs to decline, and that stakeholders should see lower site production costs in 2025 compared to 2024.

Ask Fintool Equity Research AI