The Carlyle Group Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Operational Performance: Steady Q4 2024 performance, producing over 73,000 ounces of gold and 12.8 million pounds of copper. Mount Milligan generated strong free cash flow. Oak Street restart since June 2023 generated over $480 million in free cash flow. Thompson Creek restarted in September 2024, with Langalaba ramping up.
• Strategic Progress: Moved to pre-feasibility study for Mount Milligan's life of mine plan. CHEMS property has substantial resources and infrastructure. Sustainability initiatives: Mount Milligan working on permit amendments, Oak Street obtained permits for expanded infrastructure.
• Financials: Fourth quarter adjusted net earnings $37 million or $0.17 per share. Strong free cash flow from operations; returned $88 million to shareholders in 2024 via share buybacks and dividends.

Segment Performance

• Mount Milligan: Fourth quarter 2024 produced almost 38,000 ounces of payable gold and 12.8 million pounds of payable copper. Full-year 2024: over 167,000 ounces of gold and 54 million pounds of copper. 2025 guidance: gold 165,000-185,000 ounces, copper 50-60 million pounds. Q4 2024 all-in sustaining costs: $1,114 per ounce; 2025 expected: $1,100-$1,200 per ounce.
• Oksut: Fourth quarter 2024: over 35,000 ounces. Full-year 2024: over 200,000 ounces (midpoint of guidance). 2025 guidance: 105,000-125,000 ounces. Q4 2024 all-in sustaining costs: $1,327 per ounce; 2025 expected: $1,475-$1,575 per ounce.
• Thompson Creek: Restart activities ongoing, with detailed engineering for plant refurbishment initiated and mobile fleet refurbishment ~80% complete.

Guidance

• 2025 consolidated gold production expected 270,000-310,000 ounces, copper 50-60 million pounds.
• 2025 all-in sustaining costs expected $1,400-$1,500 per ounce.
• Sustaining capital expenditures 2025: $97M-$119M, non-sustaining: $140M-$160M.
• Exploration spending 2025: $35-$45 million.

Risks

• Forward-looking statements subject to risks causing actual results to differ from expressed or implied.
• Permitting and regulatory processes for critical mineral projects, including Mount Milligan.
• Impact of metal price fluctuations, inflation, and geopolitical factors on operations and costs.

Question and Answer

Q: Thinking around growing in gold, interest in Turkey, M&A.

A: Focus on unlocking value in portfolio, active on greenfield exploration in Turkey, open to M&A opportunities.

Q: Capital allocation, potential higher returns.

A: Prefer to allocate capital to gold growth projects, maintaining current levels of buyback and dividend.

Q: Gold recoveries at Mount Milligan.

A: Target mid-sixties, with resequencing of the ore body and better understanding of geology to improve recoveries.

Q: Impact of tariffs on Oksut costs.

A: Not overly exposed, with supplier base largely in Canada, minimizing tariff impact.

Q: Reserve update at Mount Milligan, impact on production.

A: Remodeled based on 2023 drilling, tightening domains, with minor impact on short-term production.

Q: Strategy for Goldfield, molybdenum operations partner, Oksut reserve extension.

A: Goldfield on shelf, open to strategic outcomes for molybdenum operations, limited extension potential for Oksut.

Q: Elevated gold price impact on heap leaching at Oksut.

A: Sensitivity to cyanide concentration low, limited ability to reclassify waste as ore.

Q: Chem S update.

A: Focus on near-surface mineralization, infill drilling ongoing, with resource update expected in the second quarter of 2025