2025 Full Year Results

About this update from Anglo Asian Mining Plc

[{"type":"text","content":"\n \n 26 May 2026 \n \n   \n 2025 Full Year Results \n A transformational year with two new mines entering production \n 2026 guidance maintained \n Dividend reinstated \n   \n Anglo Asian Mining PLC (\"Anglo Asian\", the \"Company\" or the \"Group\"), the AIM listed gold, copper and silver producer focused in Azerbaijan, announces its final audited results for the year ended 31 December 2025 (\"FY 2025\").  \n   \n Operational overview \n \n \n \n \n \n \n \n \n ·    \n \n \n Two new mines brought into production during 2025, in accordance with the Company's strategy to become a mid-tier, multi-asset producer \n \n \n \n \n \n \n \n o Gilar , a new underground copper and gold mine, at Gedabek \n Ø Entered production in May and leverages existing infrastructure \n Ø Producing high grade ore \n \n \n \n \n \n \n \n o Demirli, a large brownfield copper project in Karabakh \n Ø Entered production in July \n Ø Performing in accordance with our expectations \n Ø On track to deliver full year production within our 2026 guidance. \n \n \n \n \n ·    \n \n \n Total production of 25,061 ounces of gold (2024: 15,073 ounces) and 7,915 tonnes of copper (2024: 377 tonnes) \n \n \n \n \n ·    \n \n \n Gold bullion sales of 19,631 ounces (2024: 15,251 ounces) completed at an average of $3,441 per ounce (2024: $2,432 per ounce) \n \n \n \n \n ·    \n \n \n Copper concentrate shipments totalling 29,695 dry metric tonnes (\"dmt\") with a sales value of $54.5 million (excluding the Government of Azerbaijan production share) (2024: 1,519 dmt with a sales value of $2.5 million) \n \n \n \n \n ·    \n \n \n Considerable progress made in developing the Xarxar and Garadag copper projects, with consultants set to be appointed to undertake the feasibility studies \n \n \n \n \n ·    \n \n \n Completion of the final raise of the Gedabek tailings dam wall nearing completion \n which will provide a further 2 to 3 years of storage capacity \n \n \n \n \n ·    \n \n \n Recently reported Q1 2026 production of 3,711 tonnes of copper and 6,062 ounces of gold in accordance with the Company's expectations \n   \n \n \n \n \n \n \n \n \n \n Financial overview \n \n \n \n \n ·    \n \n \n Revenues increased to $122.8 million (2024: $39.6 million) \n \n \n \n \n \n \n \n o Full year of production at Gedabek \n \n \n \n \n \n \n \n o Start of production from the Gilar and Demirli mines providing a significant increase in production \n \n \n \n \n ·    \n \n \n Group returned to profitability, delivering profit before taxation of $25.8 million (2024: loss of $21.3 million) \n \n \n \n \n \n \n \n o Increased revenues due to increased production \n o Favourable commodity prices \n \n \n \n \n ·    \n \n \n Positive net cash position of $2.6 million on 31 December 2025 (2024: net debt of $14.7 million) \n \n \n \n \n \n \n \n o Net cash flow from operations of $46.7 million (2024: $8.6 million) \n \n \n \n \n ·    \n \n \n Final dividend in respect of the year ended 31 December 2025 of 4 US cents per share \n \n \n \n \n \n \n \n o Reflects the commitment of the directors to delivering attractive shareholder returns \n o To be paid on 27 August 2026 \n \n \n \n \n   \n Outlook \n 2026 is set to be another milestone year for Anglo Asian Mining, being the first full year of production from Gilar and Demirli, and the first year in which copper is expected to be its principal output. Both mines are delivering in accordance with expectations, with Demirli continuing to ramp up to full production. \n   \n The Group is on track to deliver its 2026 guidance * , and remains confident in the execution of its medium-term growth strategy of becoming a copper-focused, multi-asset, mid-tier producer. \n   \n Reza Vaziri, Chief Executive Officer of Anglo Asian, commented: \n \"2025 was a historic year for Anglo Asian, as we achieved the first milestone of our growth strategy, becoming a multi-asset producer. In May, we brought Gilar into production, which is a high-grade underground copper and gold mine. Demirli entered production in July, and is a significant copper mine, the first of three that will enable us to deliver the remaining targets of our growth strategy. \n   \n \"As a result of our strong operational and financial performance, we are delighted to reinstate the dividend, representing our commitment to deliver attractive value for our shareholders. \n   \n \"During 2026, we expect to become primarily a copper-producing company, which is the second target of our strategy. We will also continue to develop the Xarxar and Garadag copper deposits and look forward to bringing these into production in the years ahead. We are confident that Anglo Asian has an exciting future, with a strong operational track record, attractive commodity exposure and meaningful growth ahead.\" \n   \n * The Company expects annual production in 2026 of 20,000 to 25,000 tonnes of copper at an AISC of $6,800 to $7,800 per tonne and 28,000 to 33,000 ounces of gold at an AISC of $1,500 to $1,800 per ounce. \n   \n Note that all references to \"$\" are to United States dollars, \"CAN$\" are to Canadian dollars, \"£\" and \"pence\" are to the United Kingdom pound sterling and AZN are to the Azerbaijan New Manat. \n   \n Market Abuse Regulation (MAR) Disclosure \n Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, which was incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement. \n   \n For further information please contact: \n   \n \n \n \n \n Anglo Asian Mining plc \n \n \n \n \n \n \n \n Reza Vaziri, Chief Executive Officer \n \n \n Tel: +994 12 596 3350 \n \n \n \n \n Bill Morgan, Chief Financial Officer \n \n \n Tel: +994 502 910 400 \n \n \n \n \n Stephen Westhead, Vice President \n \n \n Tel: +994 502 916 894 \n \n \n \n \n Amir Vaziri, Chief Business Development Officer \n   \n \n \n Tel: +1 (301) 332 9938 \n   \n \n \n \n \n Peel Hunt LLP  (Broker) \n Ross Allister \n David McKeown \n Emily Bhasin \n   \n \n \n Tel: +44 (0) 20 7418 8900 \n \n \n \n \n  SP Angel Corporate Finance LLP  (Nominated Adviser) \n Ewan Leggat \n Adam Cowl \n   \n \n \n Tel: +44 (0) 20 3470 0470 \n \n \n \n \n Hudson Sandler (Financial PR)   \n Charlie Jack \n Harry Griffiths   \n                                                                                      \n \n \n [email protected] \n Te l: +44 (0) 20 7796 4133 \n   \n \n \n \n \n   \n Competent Person Statement \n The information in the announcement that relates to exploration results, minerals resources and ore reserves is based on information compiled by Dr Stephen Westhead, who is a full-time employee of the Group with the position of Vice-President, who is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Fellow of the Institute of Materials, Minerals and Mining and a Member of the Institute of Directors. \n   \n Stephen Westhead has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Stephen Westhead consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. \n   \n Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a \"competent person\" as defined by the AIM rules. Stephen Westhead has reviewed the mineral resources included in this announcement. For the avoidance of doubt,   resources and economically extractable copper figures in this notification are not based on a Standard for the reporting of reserves and resources, such as JORC, as defined in the AIM Rules for Companies. \n   \n   \n Dividend for 2025 \n A final dividend of US$0.04 per ordinary share will be paid gross in respect of the year ended 31 December 2025 to shareholders on 27 August 2026 that are on the shareholders record at the record date of 7 August 2026, subject to approval of the shareholders at the Company's Annual General Meeting for 2026. The shares will go ex-dividend on 6 August 2026. All dividends will be paid gross and in cash. A scrip dividend or any other dividend reinvestment plan will not be offered by the Company. \n   \n The dividend will be payable in pounds sterling. The dividend will be converted to pounds sterling using the average of the sterling closing mid-price using the exchange rate published by the Bank of England at 4pm each day from 27 to 31 July 2026. \n   \n   \n Annual General Meeting for 2026 \n The Annual General Meeting of the Company for 2026 will be held on 24 June 2026 at 11:00 am at The Washington Mayfair Hotel, 5 Curzon Street, Mayfair, London W1J 5HE, United Kingdom. All shareholders are warmly invited to attend. \n   \n   \n Corporate governance and Section 172 (1) Statement \n A statement of the Company's compliance with the ten principles of corporate governance in the Quoted Companies Alliance Corporate Governance (2023) Code ('QCA Code') will be included in the Company's annual report and accounts for 2025. \n   \n The Company's Section 172 (1) Statement will be included in the Company's annual report and accounts for 2025. \n   \n   \n Sustainability at Anglo Asian Mining \n A report on   sustainability, including a detailed report on health and safety,   will be included in the Company's annual report and accounts for 2025. \n   \n   \n Chairman's statement \n I am delighted to present Anglo Asian Mining's full year results for 2025, a significant milestone for your Company, in our transition to become a mid-tier, copper-focused producer. \n   \n We successfully opened two mines during 2025. Gilar, an underground mine located within the Gedabek contract area, entered production in May. Gilar benefits from the extensive and mature infrastructure at Gedabek. Demirli is a large open pit copper mine and flotation processing plant in Karabakh, which began production in July, after extensive refurbishment of the plant and associated infrastructure. Demirli is a cornerstone asset in our medium-term growth strategy. Bringing two new mines successfully into production in one year was an ambitious undertaking, and I wish to thank everybody who helped deliver this significant achievement. \n   \n Gilar and Demirli enabled us to significantly increase production during 2025, and we produced 25,061 ounces of gold and 7,915 tonnes of copper. This increase in production, combined with strong commodity prices, produced a financial turnaround for the Group. The Group returned to profitability after two years of losses, reporting revenues of $123 million and a profit before tax of $26 million. The Group also generated cash from operations of $47 million. \n   \n The Board is considering a future dividend policy following the Group's return to profitability and the positive outlook for the business. The policy will seek to provide a consistent dividend, whilst also allowing for the required investment in the business to support our ambitious growth plans. We will advise shareholders of the proposed policy in due course. Following the strong performance in 2025, the Board has approved a 4 US cents final dividend for the year ended 31 December 2025 which will be payable on 27 August 2026. The Board plans to pay both an interim and final dividend in respect of the year ending 31 December 2026. \n   \n Our ongoing efforts to meet and exceed sustainability best practice continues, and we were delighted to receive our inaugural sustainability rating from Digbee Ltd, who awarded us an overall BB rating. The rating reflects our commitment to operating responsibly and sustainably. We are committed to improving this rating. \n   \n Our safety record improved during 2025 due to better working conditions, improved safety practices and broader monitoring. There were only five lost time injuries, compared to seven in 2024, despite a significant increase in manhours worked. Our lost time injury frequency rate accordingly decreased to 2.44 compared to 4.57 in 2024. I was especially pleased that Demirli completed its inaugural year with zero accidents. \n   \n The Group continues to adhere to best practice corporate governance and implemented the revised QCA Corporate Governance (2023) Code in the year. The revised code recommends the Company's remuneration policy and report are approved by shareholders on an advisory basis. Accordingly, the appropriate resolutions will be tabled to shareholders at our forthcoming annual general meeting, details of which are given above. We encourage all shareholders to attend and look forward to meeting as many of you as possible. \n   \n The Company has developed considerable operational momentum and is on track to deliver on its medium-term growth strategy, with 2026 set to be another year of growth. We look forward to continuing to update our investors of our progress. I would also like to extend my gratitude to all Anglo Asian Mining employees and partners and the Government of Azerbaijan for their continued support. \n   \n Khosrow Zamani \n Non-executive chairman \n 26 May 2026 \n   \n   \n President and chief executive's review \n I am very pleased to report Anglo Asian Mining's full year results for 2025, a year in which we delivered strongly against our operational and strategic objectives. The Group demonstrated clear progress in its transition to a mid-tier, copper-focused producer and met an important strategic growth target of becoming a multi-asset producer. \n   \n The Group successfully brought two new mines into production in 2025. Gilar, an underground mine at Gedabek, commenced production in May. Demirli, a large open pit copper mine with existing processing facilities and infrastructure, entered production in July. To bring these two predominantly copper mines into operation supports our strategic objective of copper becoming the majority of our production. \n   \n Gedabek was fully restarted in late 2024, and since then has operated without any significant issues, increasing production substantially year on year. Gilar and Demirli have also made important contributions to our copper production. These positive outcomes all significantly increased production in 2025 and, supported by favourable metal prices, returned the Group to profitability. \n   \n Operational review \n The Group produced 25,061 ounces of gold and 7,915 tonnes of copper in 2025 as a result of a full year of production at Gedabek, and contributions from Gilar and Demirli.  4,787 tonnes of copper were produced at Gedabek and 3,128 tonnes at Demirli. \n   \n Gedabek had a full year of production following the restart of its flotation and agitation leaching plants in late 2024. Throughout 2025, the plants operated in line with our expectations. We continued to optimise the processing facilities with initiatives such as replacing the flotation plant's filter presses with larger capacity models to process Gilar ore. We also started an upgrade of the flotation plant with the addition of nine Imhoflot pneumatic flotation cells. This upgrade is now substantially complete. \n   \n Gilar commenced production in May and has successfully ramped up production since it opened. Mining rates have steadily increased toward our targeted rate, with excellent ore grades in line with expectations. \n   \n The Group entered into a lease with AzerGold Closed Joint Stock Company for the use of the Demirli flotation plant and associated infrastructure and mining equipment in the year. The lease is for three years, which can be extended, and the Group can give notice at any time if the plant ceases to be the main processing plant. The annual base rent is $24 million per annum ($2 million per month) which is variable under certain circumstances. These circumstances are fully explained in the financial review below. The Group's usual production sharing arrangements will apply to Demirli and the rent is included in our recoverable costs. \n   \n Demirli entered production in June. This is a remarkable achievement given that we only gained access to the property in November 2024. During 2025, the existing infrastructure was substantially upgraded and refurbished to commence production. Unfortunately, failure of the gear shaft of the plant's ball mill reduced production in the year and quarter one 2026. However, it has now been replaced, and both mills are operating satisfactorily. With its six million tonne per annum capacity flotation plant, Demirli is well placed to deliver significant copper production. \n   \n We established logistic centres for Gedabek and Demirli in the year for the sale of copper concentrate. They are located close to their respective mine sites, and the main road from Baku to Georgia, and have greatly expedited our copper concentrate sales. \n   \n The final raise of the tailings dam wall at Gedabek will be finished mid-year. This will provide enough capacity for the next two to three years. We have begun the process, together with the Government of Azerbaijan, to build the second Gedabek tailings dam. Various technical studies of the Demirli tailings dam were carried out, including inspections by local and international consultancies. These confirmed that the current tailings dam wall is safe for current operations. However, we are taking measures to further strengthen the dam including buttressing its wall. \n   \n We continue to make excellent progress with our portfolio of assets under development. We pursued our studies of the historical data and drill core of Garadag and Xarxar in 2025. We have started the process of appointing an external consultant to prepare feasibility studies for both projects. These are substantial assets which will drive the growth of the Group. Xarxar will be the first of the assets to enter production and is scheduled to commence production in 2027 to 2028. \n   \n We continued to invest in infrastructure across our operations, including tailings management facilities and site improvements. These support increased production and ensure we meet or exceed international best practice standards. \n   \n Financial performance \n The strong increase in production during the year, supported by favourable copper and gold prices, resulted in a major turnaround in our financial performance in 2025. The Group returned to profitability after two years of losses. \n   \n Revenues increased significantly year on year to $123 million, while our profit before tax was $26 million. The Group generated cash from operations of $47 million. At year end, we had net cash of $2.6 million, reflecting our strong cash generation in the year. The Group did not hedge any sales of its production in the year. \n   \n The Group will not report an All-In Sustaining Cost (\"AISC\") of gold or copper produced for 2025. Given that both Gilar and Demirli commenced production in mid-2025, we do not believe the costs would be meaningful in 2025. The Group will report AISC for copper and gold in 2026, and guidance has already been given for these costs.  \n   \n Revenues from production at Gedabek and Demirli throughout 2025 were subject to an effective royalty rate of 12.75 per cent. in accordance with our production sharing agreement with the Government of Azerbaijan. We anticipate that this same effective royalty rate will continue to apply, to at least the end of 2026, for Demirli. However, we expect the effective royalty rate to rise to around 18 per cent. for Gedabek by the end of 2026. \n   \n Commitment to global standards and sustainability \n In June, we were pleased to be awarded a BB rating from Digbee, the ESG rating company, which is the Group's first-ever sustainability rating. This shows the progress made against our sustainability goals and our focus on always operating responsibly. More importantly, it provides a solid foundation from which we will continue to develop our approach to sustainability and strengthen our ESG practices to improve the rating. \n   \n As one of the largest employers in Azerbaijan, with approximately 1,400 employees, we remain committed to delivering value to local communities through employment, community initiatives and environmental programmes. Our outreach activities, including medical support, food aid and environmental initiatives such as tree planting, have continued throughout the year. \n   \n We continued our work towards full alignment with the Global Industry Standard on Tailings Management ('GISTM'), aiming to achieve full compliance by the end of 2026. In parallel, we have enhanced our internal policies across health and safety, ethics, and environmental management, ensuring alignment with international best-practice standards. \n   \n Dividend \n The Board has approved a 4 US cents final dividend for the year ended 31 December 2025 as set out in the Chairman's statement. \n   \n Annual general meeting (\"AGM\") for 2026 \n We encourage shareholders to attend our AGM for 2026, details of which are set out above. This year, two additional non-binding resolutions will be presented to shareholders to approve the directors' remuneration policy and the directors' remuneration. The directors welcome all shareholders to attend and look forward to meeting as many of you as possible. At the previous two AGMs, we gave shareholders a detailed presentation about the Company. We believe these presentations were well received and a further such presentation will be made at the AGM for 2026. \n   \n Rectification of technical issues regarding distributable reserves \n Following issue of a shareholder circular, a general meeting of the Company was held on 22 October 2025, where the shareholders passed a resolution to rectify the technical issues regarding distributable reserves. Deeds of release were then signed to give legal force to the rectification. The directors will obtain appropriate external legal advice, whenever further dividends are paid, to avoid any such issues in the future. \n   \n Appointment of Peel Hunt LLC as brokers to the Company \n We were very pleased to announce that in early 2026, Peel Hunt LLC were appointed as new brokers for the Company. SP Angel Corporate Finance LLP will remain as the Company's nominated adviser ('NOMAD'). \n   \n Looking ahead \n The progress made in 2025 marks a significant step forward in Anglo Asian's evolution towards becoming a mid-tier producer. \n   \n We are pleased to have issued 2026 guidance of 20,000 to 25,000 tonnes of copper production, 28,000 to 33,000 ounces of gold, and 170,000 to 210,000 ounces of silver, reflecting our continued growth and the first full year of production at Gilar and Demirli. We also disclosed our first-ever Group cost guidance, with 2026 AISC of $1,500 to $1,800 per ounce of gold and $6,800 to $7,800 per tonne of copper. \n   \n I would like to thank all our employees for their dedication and hard work during the year, with their commitment being instrumental in delivering such strong progress and positioning Anglo Asian for future success. \n   \n With Gedabek operating at full capacity, Gilar and Demirli now in production and an exciting portfolio of future projects in development, we are confident that the future is bright for Anglo Asian. \n   \n Reza Vaziri \n President and chief executive \n 26 May 2026 \n   \n   \n Strategic report \n   \n Principal activities \n Anglo Asian Mining PLC (the \"Company\"), together with its subsidiaries (the \"Group\"), owns and operates gold, silver and copper producing properties in the Republic of Azerbaijan (\"Azerbaijan\"). It also explores for, and develops, gold and copper deposits in Azerbaijan. \n The Group has a substantial portfolio of assets that lay the foundation for future growth of the business. Gilar, Zafar, Xarxar and Garadag all host significant ore deposits. At 1 January 2026, they contain total JORC mineral resources (measured, indicated and inferred) of over one million tonnes of copper and 344,000 ounces of gold. Demirli also hosts a significant non-JORC copper resource. \n \n Production Sharing Agreement with the Government of Azerbaijan \n The Group's mining concessions (\"Contract Areas\") in Azerbaijan are held under a Production Sharing Agreement (\"PSA\") with the Government of Azerbaijan dated 20 August 1997. Amendments to the PSA which granted the Group additional Contract Areas, were passed into law in Azerbaijan on 5 July 2022. \n A further amendment was made to the PSA which replaced the local party to the PSA, the Ministry of Ecology and Natural Resources, with AzerGold Closed Joint Stock Company (\"AzerGold CJSC\"). Minor amendments were also made in respect of the use of facilities for the Kyzlbulag, Demirli and Vejnaly Contract Areas. These amendments were passed into law in Azerbaijan on 21 June 2024. \n \n Contract Areas in Azerbaijan \n The Group has eight Contract Areas covering a total of 2,544 square kilometres in western Azerbaijan: \n •  Gedabek. The location of one of the Group's open pit mines and Gilar, a major new underground mine. Gilar extracted its first ore in March 2025 and started production in May 2025. The Gedabek and Gadir underground mines were both shut in 2025. The Zafar deposit is also situated at Gedabek but development of the mine was stopped in mid-2023. The Group has leaching and flotation processing facilities located at Gedabek. \n •  Demirli. The location of a copper and molybdenum open pit mine and a flotation processing plant. The Demirli Contract Area is in Karabakh and adjacent to the Kyzlbulag Contract Area which it extends to the northeast. The Group commenced production from the open pit mine and flotation plant in July 2025. \n •   Xarxar. Hosts the Xarxar copper deposit. It is located adjacent to the Gedabek and Garadag Contract Areas. \n •   Garadag. Hosts the large Garadag copper deposit and is located to the north of Gedabek and Xarxar. \n •  Gosha. Located approximately 50 kilometres from Gedabek and hosts a narrow-vein gold and silver mine. \n •   Vejnaly. Situated in the Zangilan district of Azerbaijan and hosts the Vejnaly deposit. \n • Ordubad. An early-stage gold and copper exploration area located in the Nakhchivan exclave of Azerbaijan. \n •  Kyzlbulag. Situated in Karabakh and hosts the Kyzlbulag mine. \n The Gedabek, Xarxar, Garadag and Gosha Contract Areas form a contiguous territory totalling 1,408 square kilometres. The Group received full access to the Kyzlbulag Contract Area in April 2026. The Group had its access restored in 2026 to the Vejnaly Contract Area in Zangilan. The Government had previously withdrawn access to Vejnaly whilst the site was made safe from land mines. \n \n Overview of 2025 \n The Group's strategy is to transition into a mid-tier, multi-asset, copper focused producer, which will be achieved through developing its considerable assets. The Group made excellent progress against this strategy in 2025 with the opening of two new mines. The Group's new Gilar underground mine started production in May 2025 and its new open pit Demirli mine started production in July 2025. The Group achieved record copper production in 2025 of 7,915 tonnes. \n The Group continued to invest to improve its operations and a major upgrade of the flotation plant at Gedabek, to increase its capacity and flexibility, started in 2025. The Group also established two logistic centres for the sale of its copper concentrate. Construction of stage two of the final raise of the tailings dam at Gedabek continued throughout 2025. \n Gilar mine production \n The Group's new underground Gilar mine at Gedabek commenced production in 2025. The first ore from the mine was extracted in March 2025 and the mine entered production in May 2025. \n   \n Demirli mine production \n The Group's new open pit mine at Demirli in Karabakh entered production in July 2025. The Group concluded a concentrate sales agreement with Trafigura Pte Ltd. in November 2025, and the first sales of its copper concentrate production were made in December 2025. \n   \n Gedabek and Gadir underground mines \n The Gedabek and Gadir underground mines were both shut in 2025 although access to the mines still remains in place. \n   \n Logistics centres \n The Group established two logistics centres in 2025 for the sale of its copper concentrate, one for Demirli and one for Gedabek. They are both located close to their respective mine sites and the main highway from Baku to Georgia. They comprise warehousing and material handling facilities for bags of copper concentrate. These facilities enable more efficient delivery of concentrate to customers. It is also more environmentally friendly to store concentrate at dedicated warehouse facilities than at the mine sites. Trucks also require permission from the Government of Azerbaijan to enter Karabakh. The Demirli logistics centre is located outside of Karabakh which avoids customers needing to obtain permission for their trucks to enter Karabakh to take delivery of concentrate produced by Demirli. \n   \n Inaugural Environment, Social and Governance (\"ESG\") rating \n In June 2025, the Group received its inaugural sustainability rating from Digbee Ltd, an independent provider of ESG assessment and disclosure solutions to the mining sector. Obtaining this rating was in line with the Group's objective of continuous improvement of its ESG performance. \n   \n New corporate website \n The Group released a new corporate website in December 2025 \n \n Production and cost guidance for full year 2026 (\"FY 2026\") \n The Group published its production guidance for FY 2026 on 18 February 2026 as follows:  \n Group production guidance \n \n \n \n \n   \n \n \n 2026 production guidance¹ \n \n \n \n \n Copper (tonnes) \n \n \n 20,000 to 25,000 \n \n \n \n \n Gold (ounces) \n \n \n 28,000 to 33,000 \n \n \n \n \n Silver (ounces) \n \n \n 170,000 to 210,000 \n \n \n \n \n   \n Group cost guidance \n \n \n \n \n   \n \n \n 2026 AISC guidance \n \n \n \n \n Gold ($/oz) \n \n \n 1,500 to 1,800 \n \n \n \n \n Copper ($/tonne) \n \n \n 6,800 to 7,800 ² \n \n \n \n \n   \n Notes \n 1.   2026 production guidance represents aggregate Group production inclusive of the Government of Azerbaijan's share under the terms of the Production Sharing Agreement. \n 2.   The copper All-In-Sustaining-Cost (\"AISC\") guidance excludes the cost of the lease of the Demirli property complex from the Government of Azerbaijan as it is equivalent to the capital cost of building the plant. If the cost of the lease is included, the AISC guidance for copper increases by approximately $1,000 per tonne. The copper AISC also reflects the costs of overburden stripping required at Demirli to expose further reserves of ore . \n   \n Calculation of All-In Sustaining Cost (\"AISC\") for copper and gold \n Gedabek copper and gold production \n The Group produces both copper and gold at its Gedabek production site. Both metals are considered primary products as both contribute materially to revenue. Accordingly, the \" Co-Product Accounting\" method is used to allocate costs to gold and copper. The total cost of the Gedabek production site, plus sustaining capital expenditure and metal selling costs, is therefore allocated to gold and copper in proportion to their expected sales revenues. \n   \n The revenue from silver production is treated as a by-product and credited against the total costs of Gedabek production before allocation. The forecast revenues generated by gold, silver and copper are calculated using the Group's share of production which are also used for calculating the AISC of copper and gold. A proportion of the total costs (based on Gedabek and Demirli site headcount) of the Group's office in Baku is also included as this office performs various administrative functions for the Gedabek and Demirli sites. \n   \n Demirli copper production \n The AISC for copper is calculated using the total costs of production at the site including sustaining capital expenditure, copper selling costs and its share of the Baku office overheads. The Group's share of production is used to calculate the AISC. \n   \n Group gold and copper production \n The AISC for Gold production is the AISC for Gedabek. The Group's only location where gold is produced is Gedabek. The AISC for copper is calculated as the total costs of Gedabek and Demirli divided by the total of the Group's share of copper production. \n   \n Mineral resources and ore reserves \n Key to the future development of the Group are the mineral resources and ore reserves within its Contract Areas. Mineral resource and ore reserve estimates are produced both in accordance with the JORC (2012) code (\"JORC\") and as non-JORC compliant internal estimates. \n An internal Group estimate has been prepared, in accordance with JORC procedures, of the remaining mineralisation of the Gedabek open pit at 1 January 2026. This is set out in Table 1. The Gedabek underground mine and the Gadir underground mine were shut in 2025. \n A final JORC mineral resources estimate of the Zafar deposit at 30 November 2021 is set out in Table 2. A maiden JORC mineral resources estimate of the Gilar deposit at 30 November 2023 was published on 11 December 2023. An internal Group estimate of the Gilar JORC mineral resources estimate, updated for depletion between commencement of mining in 2025 and 31 December 2025, is set out in Table 3. A maiden JORC mineral resources estimate of copper in the Xarxar deposit at January 2024 was published on 20 February 2024 and is set out in Table 4. \n The maiden JORC mineral resources estimate of copper in the Garadag deposit at July 2024 was published on 24 September 2024 and is set out in Table 5. Table 6 sets out the Soviet mineral resources estimate for the Vejnaly deposit. Table 7 sets out an internal Group estimate of the remaining mineral resources of the Demirli deposit classified according to the JORC standard at 1 January 2026. \n \n Table 1 - Internal Group estimate of the remaining mineralisation of the Gedabek open pit in accordance with JORC at 1 January 2026 \n \n \n \n \n \n   \n \n \n \n \n Tonnage \n (million \n tonnes) \n \n \n \n \n In-situ grades \n \n \n \n \n \n \n \n Contained metal \n \n \n \n \n \n \n Gold \n (g/t) \n \n \n \n \n Copper \n (%) \n \n \n \n \n Silver \n (g/t) \n \n \n \n \n Zinc \n (%) \n \n \n \n \n   \n \n \n \n \n Gold \n (koz) \n \n \n \n \n Copper \n (kt) \n \n \n \n \n Silver \n (koz) \n \n \n \n \n Zinc \n (t) \n \n \n \n \n \n Measured and indicated \n \n \n 3.24 \n \n \n 0.27 \n \n \n 0.45 \n \n \n 6.18 \n \n \n 0.18 \n \n \n \n \n \n 27.5 \n \n \n 14.7 \n \n \n 624.0 \n \n \n 5.7 \n \n \n \n \n \n Inferred \n \n \n \n \n 0.80 \n \n \n \n \n 0.56 \n \n \n \n \n 0.21 \n \n \n \n \n 6.51 \n \n \n \n \n 0.10 \n \n \n \n \n   \n \n \n \n \n 13.9 \n \n \n \n \n 1.7 \n \n \n \n \n 162.8 \n \n \n \n \n 0.8 \n \n \n \n \n \n \n Total \n \n \n \n \n 4.05 \n \n \n \n \n 0.33 \n \n \n \n \n 0.40 \n \n \n \n \n 6.25 \n \n \n \n \n 0.16 \n \n \n \n \n   \n \n \n \n \n 41.4 \n \n \n \n \n 16.4 \n \n \n \n \n 786.8 \n \n \n \n \n 6.5 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n   \n Table 2 - Final JORC mineral resources estimate of the Zafar deposit at 30 November 2021 \n Copper > 0.3 per cent. copper equivalent \n \n \n \n \n \n   \n \n \n \n \n Tonnage \n (million \n tonnes) \n \n \n \n \n In-situ grades \n \n \n \n \n \n \n \n Contained metal \n \n \n \n \n \n \n Copper \n (%) \n \n \n \n \n Gold \n (g/t) \n \n \n \n \n Zinc \n (%) \n \n \n \n \n   \n \n \n \n \n Copper \n (kt) \n \n \n \n \n Gold \n (kozs) \n \n \n \n \n Zinc \n (kt) \n \n \n \n \n \n Measured and indicated \n \n \n 5.5 \n \n \n 0.5 \n \n \n 0.4 \n \n \n 0.6 \n \n \n \n \n \n 25 \n \n \n 64 \n \n \n 32 \n \n \n \n \n \n Inferred \n \n \n \n \n 1.3 \n \n \n \n \n 0.2 \n \n \n \n \n 0.2 \n \n \n \n \n 0.3 \n \n \n \n \n   \n \n \n \n \n 3 \n \n \n \n \n 9 \n \n \n \n \n 3 \n \n \n \n \n \n \n Total \n \n \n \n \n 6.8 \n \n \n \n \n 0.5 \n \n \n \n \n 0.4 \n \n \n \n \n 0.6 \n \n \n \n \n   \n \n \n \n \n 28 \n \n \n \n \n 73 \n \n \n \n \n 36 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n   \n Table 3 - Internal Group estimate of the remaining mineralisation of the Gilar deposit in accordance with JORC at 1 January 2026 \n   \n Reporting cut-off >= 0.5 grammes per tonne of gold equivalent* \n \n \n \n \n \n   \n   \n \n \n \n \n Tonnage \n (million \n tonnes) \n \n \n \n \n In-situ grades \n \n \n \n \n \n \n \n Contained metal \n \n \n \n \n \n \n Gold \n (g/t) \n \n \n \n \n Copper \n (%) \n \n \n \n \n Zinc \n (%) \n \n \n \n \n   \n \n \n \n \n Gold \n (koz) \n \n \n \n \n Copper \n (kt) \n \n \n \n \n Zinc \n (kt) \n \n \n \n \n \n Measured \n \n \n 3.31 \n \n \n 1.46 \n \n \n 0.97 \n \n \n 0.89 \n \n \n \n \n \n 150.0 \n \n \n 32.2 \n \n \n 29.4 \n \n \n \n \n \n Indicated \n \n \n \n \n 2.01 \n \n \n \n \n 1.00 \n \n \n \n \n 0.56 \n \n \n \n \n 0.49 \n \n \n \n \n   \n \n \n \n \n 62.5 \n \n \n \n \n 11.3 \n \n \n \n \n 9.8 \n \n \n \n \n \n Measured and indicated \n \n \n 5.32 \n \n \n 1.28 \n \n \n 0.82 \n \n \n 0.74 \n \n \n   \n \n \n 212.4 \n \n \n 43.5 \n \n \n 39.2 \n \n \n \n \n \n Inferred \n \n \n \n \n 0.20 \n \n \n \n \n 0.69 \n \n \n \n \n 0.26 \n \n \n \n \n 0.26 \n \n \n \n \n   \n \n \n \n \n 4.2 \n \n \n \n \n 0.5 \n \n \n \n \n 0.5 \n \n \n \n \n \n \n Total \n \n \n \n \n 5.52 \n \n \n \n \n 1.26 \n \n \n \n \n 0.80 \n \n \n \n \n 0.72 \n \n \n \n \n   \n \n \n \n \n 216.7 \n \n \n \n \n 44.0 \n \n \n \n \n 39.7 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n *   Gold equivalent calculation = Gold g/t plus (copper per cent.*1.49) plus (zinc*0.46). The metal price assumptions used were Gold - $1,675 per ounce; \nCopper - $8,000 per tonne; Zinc - $2,500 per tonne. \n   \n Table 4 - Maiden JORC mineral resources estimate of copper in the Xarxar deposit at January 2024 \n Reporting cut-off >= 0.2 per cent. copper. \n \n \n \n \n \n Domain \n \n \n \n \n Mineral resources estimate of copper in the Xarxar Deposit by oxidation domain \n \n \n \n \n \n \n Indicated \n \n \n \n \n \n \n \n Inferred \n \n \n \n \n \n \n \n Indicated and inferred* \n \n \n \n \n \n \n Tonnes \n (mt) \n \n \n \n \n Grade \n (%) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n   \n \n \n \n \n Tonnes \n (mt) \n \n \n \n \n Grade \n (%) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n   \n \n \n \n \n Tonnes \n (mt) \n \n \n \n \n Grade \n (%) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n \n Oxide \n \n \n 5.2 \n \n \n 0.55 \n \n \n 28.5 \n \n \n \n \n \n 0.8 \n \n \n 0.66 \n \n \n 5.2 \n \n \n \n \n \n 5.9 \n \n \n 0.57 \n \n \n 33.7 \n \n \n \n \n \n Sulphide \n \n \n \n \n 16.8 \n \n \n \n \n 0.46 \n \n \n \n \n 77.9 \n \n \n \n \n   \n \n \n \n \n 2.1 \n \n \n \n \n 0.35 \n \n \n \n \n 7.6 \n \n \n \n \n   \n \n \n \n \n 18.9 \n \n \n \n \n 0.45 \n \n \n \n \n 85.5 \n \n \n \n \n \n \n Total \n \n \n \n \n 22.0 \n \n \n \n \n 0.48 \n \n \n \n \n 106.3 \n \n \n \n \n   \n \n \n \n \n 2.9 \n \n \n \n \n 0.44 \n \n \n \n \n 12.8 \n \n \n \n \n   \n \n \n \n \n 24.9 \n \n \n \n \n 0.48 \n \n \n \n \n 119.1 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n *   Measured resources were nil due to insufficient third-party quality assurance and quality control (\"QAQC\") drill core assays being carried out. Further QAQC drill core assays will be carried out. \n   \n Table 5 - Maiden JORC mineral resources estimate of copper in the Garadag deposit at July 2024 by domain \n \n \n \n \n \n Domain \n \n \n \n \n Cut-off \n (%) \n \n \n \n \n Indicated \n \n \n \n \n \n \n \n Inferred \n \n \n \n \n \n \n \n Indicated and inferred \n \n \n \n \n \n \n Tonnes \n (Mt) \n \n \n \n \n Grade \n (Cu %) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n   \n \n \n \n \n Tonnes \n (Mt) \n \n \n \n \n Grade \n (Cu %) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n   \n \n \n \n \n Tonnes \n (Mt) \n \n \n \n \n Grade \n (Cu %) \n \n \n \n \n Metal \n (kt) \n \n \n \n \n \n 0 (un-mineralised) \n \n \n 0.13 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n 1 (leach) \n \n \n 0.13 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n 3 (enriched) \n \n \n 0.13 \n \n \n 45.8 \n \n \n 0.45 \n \n \n 205.6 \n \n \n \n \n \n 68.9 \n \n \n 0.42 \n \n \n 285.9 \n \n \n \n \n \n 114.7 \n \n \n 0.43 \n \n \n 491.5 \n \n \n \n \n \n 5 (primary) \n \n \n \n \n 0.13 \n \n \n \n \n 41.1 \n \n \n \n \n 0.24 \n \n \n \n \n 98.7 \n \n \n \n \n   \n \n \n \n \n 129.1 \n \n \n \n \n 0.24 \n \n \n \n \n 306.7 \n \n \n \n \n   \n \n \n \n \n 170.2 \n \n \n \n \n 0.24 \n \n \n \n \n 405.4 \n \n \n \n \n \n \n Total \n \n \n \n \n   \n \n \n \n \n 86.9 \n \n \n \n \n 0.35 \n \n \n \n \n 304.3 \n \n \n \n \n   \n \n \n \n \n 198 \n \n \n \n \n 0.30 \n \n \n \n \n 592.6 \n \n \n \n \n   \n \n \n \n \n 284.9 \n \n \n \n \n 0.32 \n \n \n \n \n 896.9 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n   \n Table 6 - Soviet mineral resources estimate of the Vejnaly deposit \n \n \n \n \n \n   \n   \n \n \n \n \n \n \n \n Metal content \n \n \n \n \n \n \n Units \n \n \n \n \n Category C1 \n \n \n \n \n Category C2 \n \n \n \n \n Total \n C1 and C2 \n \n \n \n \n \n Ore \n \n \n Tonnes \n \n \n 181,032 \n \n \n 168,372 \n \n \n 349,404 \n \n \n \n \n Gold \n \n \n Kilogrammes \n \n \n 2,148.5 \n \n \n 2,264.2 \n \n \n 4,412.7 \n \n \n \n \n Silver \n \n \n Kilogrammes \n \n \n 6,108.9 \n \n \n 4,645.2 \n \n \n 10,754.1 \n \n \n \n \n \n Copper \n \n \n \n \n Tonnes \n \n \n \n \n 1,593.6 \n \n \n \n \n 1,348.8 \n \n \n \n \n 2,942.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n   \n Table 7 - Internal Group estimate (non-JORC) of the remaining mineral resources of the Demirli deposit classified according to the JORC standard at 1 January 2026 \n \n \n \n \n \n   \n \n \n \n \n Ore tonnage \n (million tonnes) \n \n \n \n \n In-situ grades \n Copper \n (%) \n \n \n \n \n Contained \n metal \n Copper \n (thousand \n tonnes) \n \n \n \n \n \n Measured \n \n \n 3.50 \n \n \n 0.44 \n \n \n 15.6 \n \n \n \n \n Indicated \n \n \n 9.51 \n \n \n 0.45 \n \n \n 42.8 \n \n \n \n \n Inferred \n \n \n 27.78 \n \n \n 0.37 \n \n \n 102.8 \n \n \n \n \n \n Non-classified \n \n \n \n \n 15.56 \n \n \n \n \n 0.44 \n \n \n \n \n 68.5 \n \n \n \n \n \n \n Total \n \n \n \n \n 56.35 \n \n \n \n \n 0.41 \n \n \n \n \n 229.6 \n \n \n \n \n \n   \n Some of the totals in the above table may not sum due to rounding. \n All tonnages reported are dry metric tonnes. \n The above mineral resources estimate for Demirli is only in respect of the mineral resources below the current open pit and does not include further resources in the surrounding area. \n \n Gedabek \n Introduction \n The Gedabek mining operation is located in a 300 square kilometre Contract Area in the Lesser Caucasus mountains in western Azerbaijan on the Tethyan Tectonic Belt, one of the world's most significant copper and gold-bearing geological structures. Gedabek is the location of the Group's Gedabek open pit mine. The Group has agitation and flotation processing facilities at Gedabek. A new underground mine, Gilar, opened in 2025 with its first ore extracted in March 2025 and production started in May 2025. Zafar is another underground mine under development at Gedabek. One portal of the Zafar mine has been constructed, but no further development is currently being carried out. \n Gold production at Gedabek commenced in September 2009. Ore was initially mined from an open pit, with underground mining commencing in 2015, when the Gadir mine was opened. In 2020, underground mining commenced beneath the main open pit (the \"Gedabek underground mine\"). The Gedabek and Gadir underground mines now form one continuous underground system of tunnels. \n Initial gold production was by heap leaching, with copper production beginning in 2010 from the Sulphidisation, Acidification, Recycling and Thickening (\"SART\") plant. The Group's agitation leaching plant commenced production in 2013 and its flotation plant in 2015. From the start of production to 31 December 2025, approximately 850 thousand ounces of gold and 26 thousand tonnes of copper have been produced at Gedabek. \n Gedabek open pit \n Open pit mining at Gedabek is carried out at its main open pit (which comprises several contiguous smaller open pits). It is mined using conventional open-cast mining using trucks and shovels and ore transported to the processing facilities by truck. \n Gadir and Gedabek underground mines \n Ore was previously mined from the Gadir and Gedabek underground mines. However, the Gadir and Gedabek underground mines were shut in 2025, although access to the mines remains in place. It is not expected that production from the mines will restart in the foreseeable future. \n Gilar mine \n Gilar is an underground mine located approximately seven kilometres from the Company's processing facilities and close to the northern boundary of the Gedabek Contract Area. The Group commenced developing the Gilar underground mine in late 2022 and the mine entered production in May 2025. \n A maiden JORC mineral resources estimate was published on 11 December 2023. An internal Group estimate of this Gilar JORC mineral resources estimate, updated for depletion between commencement of mining in 2025 and 31 December 2025, is set out in Table 3 above. \n The Gilar mine comprises two underground tunnels, a main production tunnel and a second tunnel for ventilation. A spiral accesses the ore body. The lengths of the production and ventilation tunnels are 1,461 metres and 774 metres respectively. The walls of the tunnels are supported by steel arches and shotcrete where necessary due to soft rock. Water encountered underground is being pumped from the mine into a settling pond constructed near the entrance to the mine. The mining method employed at Gilar is sub-level caving. Ore from the mine is hauled by truck to the Gedabek processing facilities. \n Surface infrastructure comprises of a heavy equipment workshop, mine office facilities and technical support and services offices and a canteen. Security and safety fencing, a mine entrance area and power generator set foundations have also been constructed. The Caterpillar underground mining fleet comprises of three R1700 and two 980UMA underground loaders. \n Zafar mine development \n The Zafar deposit was discovered in 2021 and is located 1.5 kilometres northwest of the existing Gedabek processing plant. Its final JORC mineral resources estimate was published in March 2022 and is set out in Table 2 above. \n A mining scoping study for the Zafar mine was completed in February 2023 and development commenced. Two tunnels are planned, one for haulage and a parallel ventilation tunnel. One of the two portals required for the tunnels was constructed close to the existing Gedabek processing facilities and about one kilometre from the mineralisation. Five metres of haulage tunnel and 6.6 metres of ventilation tunnel had also been completed, prior to suspension of development. \n Development of the Zafar mine was stopped in mid-2023 and resources diverted to development of the Gilar mine. \n Environmental study and Micon report \n Micon International Co Limited (\"Micon\") undertook a health, safety and environmental due diligence review of tailings management at Gedabek in July 2023. No significant environmental contamination was found. The final Micon report contained various recommendations to improve some operational, social and safety aspects of the Gedabek operations. In November 2023, the Group agreed an action plan with the Government of Azerbaijan (the \"Action Plan\") to address these recommendations. The Group is still carrying out some long term and continuous obligations of the Micon recommendations. \n Ore mined in 2025 \n Table 8 sets out all the ore mined at Gedabek for the year ended 31 December 2025. \n Table 8 - Ore mined at Gedabek for the year ended 31 December 2025 \n   \n \n \n \n \n \n Mine \n \n \n \n \n Total ore mined \n for the year ended \n 31 December 2025 \n \n \n \n \n \n \n Ore mined \n (tonnes) \n \n \n \n \n Average \n gold grade \n (g/t) \n \n \n \n \n Average \n copper grade \n (%) \n \n \n \n \n \n Gedabek open pit \n \n \n 682,495 \n \n \n 0.28 \n \n \n 0.34 \n \n \n \n \n Gadir underground \n \n \n 13,592 \n \n \n 2.07 \n \n \n 0.19 \n \n \n \n \n \n Gilar underground \n \n \n \n \n 544,459 \n \n \n \n \n 1.43 \n \n \n \n \n 1.00 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 1,240,546 \n \n \n \n \n 0.80 \n \n \n \n \n 0.63 \n \n \n \n \n \n   \n Processing operations \n Ore is processed at Gedabek to produce either gold doré (an alloy of gold and silver with small amounts of impurities, mainly copper) or a copper and precious metal concentrate. \n Gold doré is produced by cyanide leaching. Initial processing is to leach (i.e. dissolve) the precious metal (and some copper) in a cyanide solution. This is done by various methods: \n 1.  Heap leaching of crushed ore. Crushed ore is heaped into permeable \"pads\" onto which is sprayed a solution of cyanide. The solution dissolves the metals as it percolates through the ore by gravity and it is then collected on the impervious base under the pad. \n 2.  Heap leaching of run of mine (\"ROM\") ore. The process is similar to heap leaching for crushed ore, except the ore is not crushed, instead it is heaped into pads as received from the mine (ROM) without further treatment or crushing. This process is used for very low grade ores. \n 3.  Agitation leaching. Ore is crushed and then milled in a grinding circuit. The finely ground ore is placed in stirred (agitation) tanks containing cyanide solution and the contained metal is dissolved in the solution. Any coarse, free gold is separated using a centrifugal-type Knelson concentrator. \n Slurries produced by the above processes with dissolved metal in solution are then transferred to a resin-in-pulp (\"RIP\") plant. In this plant, a synthetic resin is used to selectively absorb the gold and silver from the slurry. The metal-loaded resin is then \"stripped\" of its gold and silver by desorption into another solution, from which the metals are recovered by electrolysis, followed by smelting to produce the doré metal, which comprises an alloy of gold and silver. \n Copper and precious metal concentrates are produced by two processes, SART processing and flotation. \n 1.  Sulphidisation, Acidification, Recycling and Thickening (\"SART\"). The cyanide solution after gold absorption by resin-in-pulp processing is transferred to the SART plant. The pH of the solution is then changed by the addition of reagents which precipitates the copper and any remaining silver from the solution. The process also recovers cyanide from the solution, which is recycled back to leaching. \n 2.  Flotation. Finely ground ore is mixed with water to produce a slurry called \"pulp\" and reagents are then added. This pulp is processed in flotation cells (tanks), where the pulp is stirred and air introduced as small bubbles. The sulphide mineral particles attach to the air bubbles and float to the surface where they form a froth which is collected. This froth is dewatered to form a mineral concentrate containing copper, gold and silver. The tailings from the agitation leaching are also used as flotation feedstock. The original filter press of the flotation plant was replaced in 2025 with two new filter presses, and a new thickener installed, to process the higher grade Gilar ores. A further upgrade to the flotation plant, which will include the installation of new cells, commenced in 2025. This is to both increase its capacity and increase its flexibility. \n Table 9 summarises the ore processed by leaching for the year ended 31 December 2025. \n Table 9 - Ore processed by leaching at Gedabek for the year ended 31 December 2025 \n \n \n \n \n \n Quarter ended \n \n \n \n \n Ore processed (tonnes) \n \n \n \n \n \n \n \n Gold grade of ore processed (g/t) \n \n \n \n \n \n \n Heap \n leach pad \n crushed ore \n \n \n \n \n Heap \n leach pad \n ROM ore \n \n \n \n \n Agitation \n leaching \n plant \n \n \n \n \n   \n \n \n \n \n Heap \n leach pad \n crushed ore \n \n \n \n \n Heap \n leach pad \n ROM ore \n \n \n \n \n Agitation \n leaching \n plant \n \n \n \n \n \n 31 March 2025 \n \n \n 106,429 \n \n \n - \n \n \n 149,763 \n \n \n \n \n \n 0.40 \n \n \n - \n \n \n 1.16 \n \n \n \n \n 30 June 2025 \n \n \n 133,153 \n \n \n - \n \n \n 154,948 \n \n \n \n \n \n 0.40 \n \n \n - \n \n \n 1.13 \n \n \n \n \n 30 September 2025 \n \n \n 47,202 \n \n \n - \n \n \n 156,773 \n \n \n \n \n \n 0.40 \n \n \n - \n \n \n 1.52 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 163,541 \n \n \n \n \n   \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1.27 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 286,784 \n \n \n \n \n - \n \n \n \n \n 625,025 \n \n \n \n \n   \n \n \n \n \n 0.40 \n \n \n \n \n - \n \n \n \n \n 1.26 \n \n \n \n \n \n   \n Table 10 summarises ore processed by flotation for the year ended 31 December 2025. \n Table 10 - Ore processed by flotation at Gedabek for the year ended 31 December 2025 \n \n \n \n \n   \n \n Quarter ended \n \n \n \n \n Ore processed \n (tonnes) \n \n \n \n \n Gold content \n (ounces) \n \n \n \n \n Silver content \n (ounces) \n \n \n \n \n Copper content \n (tonnes) \n \n \n \n \n \n 31 March 2025 \n \n \n 155,406 \n \n \n 535 \n \n \n 9,516 \n \n \n 729 \n \n \n \n \n 30 June 2025 \n \n \n 166,135 \n \n \n 1,193 \n \n \n 30,537 \n \n \n 900 \n \n \n \n \n 30 September 2025 \n \n \n 151,359 \n \n \n 3,185 \n \n \n 85,123 \n \n \n 1,793 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n 156,158 \n \n \n \n \n 3,027 \n \n \n \n \n 93,835 \n \n \n \n \n 2,409 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 629,058 \n \n \n \n \n 7,940 \n \n \n \n \n 219,011 \n \n \n \n \n 5,831 \n \n \n \n \n \n   \n Previously heap leached ore \n Gold production at Gedabek from 2009 to 2013 was by heap leaching crushed ore until the start-up of the agitation leaching plant in 2013. The heaps remain in-situ and given the high grade of ore processed prior to the commencement of agitation leaching, and the lower recovery rates, much of the early heap leached ore contains significant amounts of gold. This is now being reprocessed by agitation leaching. Table 11 sets out the previously heap leached ore processed for the year ended 31 December 2025. \n Table 11 - Previously heap leached ore processed for the year ended 31 December 2025 \n \n \n \n \n \n   \n \n \n \n \n In-situ \n material \n (tonnes) \n \n \n \n \n Average \n gold grade \n (g/t) \n \n \n \n \n \n 1 January 2025 \n \n \n 290,429 \n \n \n 0.83 \n \n \n \n \n \n Processed in the year \n \n \n \n \n (194,304) \n \n \n \n \n 0.99 \n \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n 96,125 \n \n \n \n \n 0.50 \n \n \n \n \n \n   \n The in-situ material is calculated at a standard cutoff grade of > 0.8 grammes per tonne of gold. \n   \n Production and sales \n For the year ended 31 December 2025, gold production totalled 25,061 ounces, which was an increase of 9,988 ounces in comparison to the production of 15,073 ounces for the year ended 31 December 2024. Copper production for the year ended 31 December 2025 was 4,787 tonnes compared to 377 tonnes for the year ended 31 December 2024, an increase of 4,410 tonnes. The higher production of gold and copper in 2025 compared to 2024 arose due to the start of production from the Gilar mine. \n Table 12 summarises the gold and silver bullion produced from doré bars and sales of gold bullion for the year ended 31 December 2025. \n Table 12 - Gold and silver bullion produced from doré bars and sales of gold bullion for the year ended 31 December 2025 \n \n \n \n \n \n Quarter ended \n \n \n \n \n Gold \n produced* \n (ounces) \n \n \n \n \n Silver \n produced* \n (ounces) \n \n \n \n \n Gold \n sales** \n (ounces) \n \n \n \n \n Gold sales \n price \n ($/ounce) \n \n \n \n \n \n 31 March 2025 \n \n \n 5,758 \n \n \n 8,206 \n \n \n 4,753 \n \n \n 2,843 \n \n \n \n \n 30 June 2025 \n \n \n 5,624 \n \n \n 6,699 \n \n \n 5,028 \n \n \n 3,299 \n \n \n \n \n 30 September 2025 \n \n \n 5,814 \n \n \n 4,655 \n \n \n 5,181 \n \n \n 3,430 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n 5,133 \n \n \n \n \n 4,788 \n \n \n \n \n 4,669 \n \n \n \n \n 4,214 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 22,329 \n \n \n \n \n 24,348 \n \n \n \n \n 19,631 \n \n \n \n \n 3,411 \n \n \n \n \n \n   \n *   Including the Government of Azerbaijan's share. \n ** Excluding the Government of Azerbaijan's share. \n   \n Table 13 summarises the total copper, gold and silver produced as concentrate by both SART and flotation processing for the year ended 31 December 2025. \n Table 13 - Total copper, gold and silver produced as concentrate by both SART and flotation processing for the year ended 31 December 2025 \n \n \n \n \n \n Quarter ended \n \n \n \n \n Copper (tonnes) \n \n \n \n \n \n \n \n Gold (ounces) \n \n \n \n \n \n \n \n Silver (ounces) \n \n \n \n \n \n \n SART \n \n \n \n \n Flotation \n \n \n \n \n Total \n \n \n \n \n   \n \n \n \n \n SART \n \n \n \n \n Flotation \n \n \n \n \n Total \n \n \n \n \n   \n \n \n \n \n SART \n \n \n \n \n Flotation \n \n \n \n \n Total \n \n \n \n \n \n 31 March 2025 \n \n \n 66 \n \n \n 468 \n \n \n 534 \n \n \n \n \n \n 7 \n \n \n 263 \n \n \n 270 \n \n \n \n \n \n 17,227 \n \n \n 4,882 \n \n \n 22,109 \n \n \n \n \n 30 June 2025 \n \n \n 70 \n \n \n 584 \n \n \n 654 \n \n \n \n \n \n 4 \n \n \n 458 \n \n \n 462 \n \n \n \n \n \n 12,753 \n \n \n 12,582 \n \n \n 25,335 \n \n \n \n \n 30 September 2025 \n \n \n 146 \n \n \n 1,431 \n \n \n 1,577 \n \n \n \n \n \n 8 \n \n \n 976 \n \n \n 984 \n \n \n \n \n \n 7,023 \n \n \n 29,945 \n \n \n 36,968 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n 164 \n \n \n \n \n 1,858 \n \n \n \n \n 2,022 \n \n \n \n \n   \n \n \n \n \n 9 \n \n \n \n \n 1,007 \n \n \n \n \n 1,016 \n \n \n \n \n   \n \n \n \n \n 9,221 \n \n \n \n \n 35,352 \n \n \n \n \n 44,573 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 446 \n \n \n \n \n 4,341 \n \n \n \n \n 4,787 \n \n \n \n \n   \n \n \n \n \n 28 \n \n \n \n \n 2,704 \n \n \n \n \n 2,732 \n \n \n \n \n   \n \n \n \n \n 46,224 \n \n \n \n \n 82,761 \n \n \n \n \n 128,985 \n \n \n \n \n \n   \n Table 14 summarises the total copper concentrate (including gold and silver) production and sales from both SART and flotation processing for the year ended 31 December 2025. \n Table 14 - Total copper concentrate (including gold and silver) production and sales from both SART and flotation processing for the year ended 31 December 2025 \n \n \n \n \n \n Quarter ended \n \n \n \n \n Concentrate \n production* \n (dmt) \n \n \n \n \n Copper \n content* \n (tonnes) \n \n \n \n \n Gold \n content* \n (ounces) \n \n \n \n \n Silver \n content* \n (ounces) \n \n \n \n \n Concentrate \n sales ** † \n (dmt) \n \n \n \n \n Concentrate \n sales ** † \n ($000) \n \n \n \n \n \n 31 March 2025 \n \n \n 3,072 \n \n \n 534 \n \n \n 270 \n \n \n 22,109 \n \n \n 2,324 \n \n \n 4,050 \n \n \n \n \n 30 June 2025 \n \n \n 3,523 \n \n \n 654 \n \n \n 462 \n \n \n 25,334 \n \n \n 3,886 \n \n \n 7,060 \n \n \n \n \n 30 September 2025 \n \n \n 6,769 \n \n \n 1,577 \n \n \n 984 \n \n \n 36,968 \n \n \n 6,852 \n \n \n 17,760 \n \n \n \n \n \n 31 December 2025 \n \n \n \n \n 9,784 \n \n \n \n \n 2,022 \n \n \n \n \n 1,016 \n \n \n \n \n 44,573 \n \n \n \n \n 7,255 \n \n \n \n \n 18,430 \n \n \n \n \n \n \n Total for the year \n \n \n \n \n 23,148 \n \n \n \n \n 4,787 \n \n \n \n \n 2,732 \n \n \n \n \n 128,984 \n \n \n \n \n 20,317 \n \n \n \n \n 47,300 \n \n \n \n \n \n   \n *   Including the Government of Azerbaijan's share \n ** Excluding the Government of Azerbaijan's share \n †   These are invoiced sales of the Group's share of production before any accounting adjustments in respect of IFRS 15. The total for the year does not therefore agree to the revenue disclosed in note 6 - \"Revenue\" to the Group financial statements. \n Infrastructure \n The Gedabek Contract Area benefits from excellent infrastructure and access. The site is located adjacent to the town of Gedabek, which is connected by good metalled roads to the regional capital of Ganja. Baku, the capital of Azerbaijan, is to the south and the country's border with Georgia to the north, are each approximately a four to five hour drive over good quality roads. The site is connected to the Azeri national power grid. \n Water management \n The Gedabek site has its own water treatment plant which uses the latest reverse osmosis technology. In the last few years, Gedabek town has experienced water shortages in the summer and this plant reduces to the absolute minimum the consumption of fresh water required by the Company. \n Tailings (waste) storage \n The Group manages its tailings facilities at Gedabek in strict compliance with the Global Industry Standard on Tailings Management (\"GISTM\"). The Group is working towards its tailings facilities being fully accredited to GISTM standards. Safety and compliance are monitored through a multi-layered process. These include both daily and monthly inspections. Water quality is monitored by company staff who collect samples which are analysed on site and by external laboratories.  Vibrating wire piezometers track pore pressure and data collection is carried out by an external company. There is also an emergency preparedness and response plan in place. \n Tailings are stored in a purpose-built dam approximately seven kilometres from the Group's processing facilities, topographically at a lower level than the processing plant, thus allowing gravity assistance of tailings flow in the slurry pipeline. Prior to the final raise of the tailings dam wall, immediately downstream of the tailings dam was a reed bed biological treatment system, to purify any seepage from the dam before being discharged safely into the nearby Shamkir river. However, the final wall raise will subsume this dam. \n In 2024, the Government of Azerbaijan approved the final raise of the tailings dam wall. This is a 6.0 metres wall raise which will raise the wall to its final design height of 90 metres. The wall raise is being carried out in two back-to-back stages, and the first raise of 2.5 metres was completed in November 2024. The construction of the final wall raise of 3.5 metres was carried out throughout 2025 with completion expected in 2026. The final raise of the wall will give the dam enough capacity for the next two to three years of production. The wall raise is being monitored by a range of high quality consultants with relevant geotechnical and other experience together with representatives of the Government of Azerbaijan. \n The Group has started the process to construct a second tailings dam at Gedabek. Various sites in the vicinity of the existing tailings dam have been identified. The Group is currently in close consultation with the Government of Azerbaijan to select the most appropriate site for its construction. Once the site has been selected, the technical work will commence to design the tailings dam etc. which will then need to be approved by the Government of Azerbaijan. \n \n Demirli \n Introduction \n The Demirli Contract Area is 74 square kilometres in Karabakh that extends to the northeast by about 10 kilometres from the Kyzlbulag Contract Area and contains the Demirli mining property. The Demirli mining property comprises an open pit mine, a processing plant and power and water infrastructure. The Demirli mining property was built during the occupation of Karabakh by Armenia and abandoned by its previous owner following resumption of sovereignty over Karabakh by the Government of Azerbaijan. The Group gained limited access to Demirli in 2024 and full access in 2025. The Group has comprehensively renovated and refurbished the plant, mining fleet and associated infrastructure. The Group commenced production from Demirli in July 2025.   \n Demirli mine \n The Demirli mine comprises two contiguous open pits. It was mined extensively by its previous owner prior to its abandonment. A reverse circulation drilling programme was completed at Demirli in 2025 to determine the start-up resource of the mine. An internal Group estimate of the remaining mineral resources at 1 January 2026, classified in accordance with JORC, was 56 million tonnes of ore with an average copper grade of 0.41 per cent. copper containing 230 thousand tonnes of copper. This internal estimate is set out in Table 7 above. \n Ore mined in 2025 \n Table 15 summarises the total ore mined at Demirli for the year ended 31 December 2025. \n Table 15 - Ore mined at Demirli for the year ended 31 December 2025 \n   \n \n \n \n \n \n \n \n Total ore mined for the year ended 31 December 2025 \n \n \n \n \n   \n \n \n Ore mined \n \n \n Average \n copper grade \n \n \n \n \n Mine \n \n \n (tonnes) \n \n \n (%) \n \n \n \n \n Open pit \n \n \n 1,974,840 \n \n \n 0.47 \n \n \n \n \n Processing operations \n The processing plant contains two rotary mills, a copper flotation plant and a molybdenum plant. The plant and associated infrastructure have been completely renovated and refurbished by the Group and production commenced in July 2025. The capacity of the plant is around 6.5 million tonnes per annum. There is also an upstream tailings dam located close to the plant. The Group leases the flotation plant, mining fleet and associated infrastructure from the Government of Azerbaijan. Further details of the lease are set out in the financial review below. \n Table 16 summarises the total ore processed at Demirli for the year ended 31 December 2025. \n Table 16 - Total ore processed at Demirli for the year ended 31 December 2025 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Quarter ended \n \n \n Ore feed to plant \n (tonnes) \n \n \n Grade \n (%) \n \n \n Copper content \n (tonnes) \n \n \n \n \n 31 March 2025 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n 30 June 2025 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n 30 September 2025 \n \n \n 292,950 \n \n \n 0.45 \n \n \n 1,307 \n \n \n \n \n 31 December 2025 \n \n \n 701,285 \n \n \n 0.47 \n \n \n 3,296 \n \n \n \n \n Total for the year \n \n \n 994,225 \n \n \n 0.47 \n \n \n 4,603 \n \n \n \n \n \n \n \n \n \n \n \n \n Production and sales \n Table 17 summarises the total copper production and sales at Demirli for the year ended 31 December 2025. \n Table 17 - Total copper production and sales at Demirli for the year ended 31 December 2025 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Copper production* \n \n \n \n \n \n Copper sales** \n \n \n \n \n Quarter ended \n \n \n Copper \n Concentrate \n (tonnes) \n \n \n Copper content \n (tonnes) \n \n \n \n \n \n Concentrate \n sales \n (tonnes) \n \n \n Sales value*** \n ($m) \n \n \n \n \n 31 March 2025 \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n 30 June 2025 \n \n \n - \n \n \n - \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n 30 September 2025 \n \n \n 4,548 \n \n \n 711 \n \n \n \n \n \n - \n \n \n - \n \n \n \n \n 31 December 2025 \n \n \n 13,975 \n \n \n 2,417 \n \n \n \n \n \n 9,378 \n \n \n 17.4 \n \n \n \n \n Total for the year \n \n \n 18,543 \n \n \n 3,128 \n \n \n \n \n \n 9,378 \n \n \n 17.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n *   Including the Government of Azerbaijan's share. \n ** Excluding the Government of Azerbaijan's share. \n *** These are invoiced sales of the Group's share of production before any accounting adjustments in respect of IFRS 15. The total for the year does not therefore agree to the revenue disclosed in note 6 - \"Revenue\" to the Group financial statements. \n   \n Infrastructure \n The Demirli plant has excellent infrastructure. It is connected to the main highway from Baku to Georgia via a good metalled road. Electricity is supplied by the Azeri national power grid and there is a power station at site. Processing water is supplied via a closed circuit which reuses water from the tailings dam. Water losses are replenished from water from a nearby river which is stored in a dam close to the plant. \n   \n Tailings (waste) storage \n There is an existing tailings dam at Demirli which was constructed by the previous owner of the property. A hybrid construction method was used to build the dam. This was initially by the centreline method (the wall is raised vertically) and later by the upstream method (each raise moves the crest of the wall upstream). The current dam has limited remaining capacity. As an interim measure, water and tailings are currently being discharged into the dam. Various technical studies, including inspections by Knight Piésold and CQA Consultants have confirmed the current tailings dam wall is safe and compliant for its current operation. The tailings dam wall is also being buttressed by waste rock from the mine. \n   \n A site for a new tailings dam has been identified at Demirli. Geotechnical studies have been completed and the tailings dam wall and pipeline route designs completed. It is targeted to obtain approval and start construction of the new tailings dam in 2026. \n   \n Xarxar \n The 464 square kilometre Xarxar Contract Area is located immediately north of the Gedabek Contract Area which it borders. The Xarxar Contract Area was acquired in 2022 together with historical geological and other data owned by AzerGold CJSC, its previous owner. \n The Xarxar Contract Area hosts the Xarxar copper deposit. The mineralisation of the deposit is copper dominant and comprises mainly oxides and secondary sulphides, with minerals such as malachite, azurite, pyrite, chalcocite and bornite, together with some primary chalcopyrite, as common minerals in the deposit, and minor barite and magnetite minerals are also recorded. The main copper mineralisation lenses are located in the central part of the Xarxar deposit, with approximate east-west orientations. \n On 20 February 2024, a maiden JORC mineral resources estimate was published for the Xarxar deposit, which is set out in Table 4 above. No geological fieldwork was carried out during 2025. Analysis continued of the drill core acquired from AzerGold CJSC. \n Gilar is situated close to the northern boundary of the Gedabek Contract Area. Geological exploration indicates that this deposit trends to the north. The Xarxar Contract Area extends the Gedabek Contract Area to the north and will therefore enable the Gilar deposit to be fully mined. \n \n Garadag \n The 344 square kilometre Garadag Contract Area is situated four kilometres north of Gedabek alongside the road from Gedabek to Shamkir. Garadag was first explored during the Soviet era and has been extensively explored since then, most recently by AzerGold CJSC, its previous owner. The roads built for drill access are still accessible and serviceable on Garadag. \n In 2022, the Group acquired historical geological and other data and associated reports (the \"Data\") in respect of Garadag from AzerGold CJSC for $3.3 million. The Data includes geochemical and geophysical data, including maps and interpretative reports. Substantial core drilling and data interpretations were carried out by AzerGold CJSC and the Data includes 9,645 chemical assays taken from 23,454 metres of drill core, which have been transferred to the Group. The Data also includes an initial mining scoping study based on a preliminary mineral resource estimate with various options for mine development, including open pit designs, initial mining schedules and an outline metallurgical flow sheet. An environmental and socio-economic baseline assessment has also been carried out and is included in the Data. \n On 24 September 2024, the Group published a maiden JORC mineral resources estimate of the Garadag deposit at July 2024. This showed a total in-situ mineral resource (indicated and inferred) of 285 million tonnes of mineralisation containing 897 thousand tonnes of copper at an average grade of 0.32 per cent. This maiden JORC resource is set out in Table 5 on above. No drilling or other geological fieldwork was carried out in 2025. However, the Group continued to analyse the drill core obtained from AzerGold CJSC. \n \n Gosha \n The Gosha Contract Area is 300 square kilometres in size and is situated in western Azerbaijan, 50 kilometres northwest of Gedabek. Gosha is regarded as under-explored. Gosha is the location of a small, high grade, underground gold mine. Ore mined at Gosha is transported by road to Gedabek for processing. No mining was carried out in the Gosha mine in the year ended 31 December 2025. \n Geological fieldwork has resulted in the discovery of additional mineralisation adjacent to the existing underground mine. This includes \"Hasan\", a sub-vertical high gold grade mineralised vein, immediately south of the existing Gosha mine. Hasan can be accessed via a short tunnel from the existing tunnelling at Gosha. A further vein close to Hasan called \"Akir\" is also showing promising mineralisation. \n The Group is also carrying out geological fieldwork at Asrikchay, a copper and gold target situated within the Gosha Contract Area. Asrikchay is located in the northeast corner of the Contract Area, about seven kilometres from the Gosha mine, within the Asrikchay valley. \n \n Vejnaly \n Vejnaly is a 300 square kilometre Contract Area located in the Zangilan district in southwest Azerbaijan. It borders Iran to the south and Armenia to the west and hosts the Vejnaly deposit. \n A thorough survey of the site has been carried out, which has found that the main ore body was extensively mined during the Armenian occupation. There are both open pit and underground workings at the location. There is also an existing crusher and flotation processing plant at the mine, which will need extensive renovation to recommence operations. \n Throughout 2025, staff were not allowed access to Vejnaly on the instructions of the Government of Azerbaijan due to the potential danger from landmines. However, access to the Contract Area was restored in early 2026. \n \n Ordubad \n The 462 square kilometre Ordubad Contract Area is located in the Nakhchivan exclave, southwest Azerbaijan, and contains numerous targets. Limited geological exploration work was carried out in the year ended 31 December 2025. \n \n Kyzlbulag \n The Kyzlbulag Contract Area is 462 square kilometres and is located in Karabakh. It contains several mines and has excellent potential for exploration, as indicated by the presence of many mineral deposits and known targets in the region. There are indications that up to 35,000 ounces of gold per year were extracted from the Kyzlbulag copper-gold mine, before the mine was closed several years ago, indicating the presence of a gold mineralising system. \n The Group only carried out some initial geological studies at Kyzlbulag in the year ended 2025 as the Group had not been granted full access to the Contract Area in 2025. The Group was granted full access to Kyzlbulag in April 2026. \n \n Geological exploration \n Summary \n ·    Limited exploration work was carried out in 2025 due to strict cost control and the Group's focus on bringing the new Gilar and Demirli mines into production. \n ·    Limited underground drilling was carried out at the Gadir and Gilar underground mines \n o 50 underground drill holes totalling 2,492 metres completed at the Gilar mine \n o Four underground drill holes totalling 166 metres completed at the Gadir mine \n ·    Geological exploration commenced at Uluxanli, a new copper and gold target at Gedabek \n ·    Reverse circulation and core drilling was carried out at Demirli \n o 2,199 reverse circulation drill holes completed with a total length of 26,974 metres to determine the remaining resource and for grade control purposes \n o Seven core drill holes totalling 1,208 metres completed to investigate the potential for copper feeder zones \n The drill hole database was digitised and a comprehensive alteration map prepared \n ·    Trenching continued at Ordubad with 1,286 metres completed yielding 659 channel samples \n ·   In-house analysis of samples from various deposits such as Zafar and Xarxar continued throughout the year \n   \n Gedabek Contract Area \n Gedabek open pit mine \n No exploration was conducted at the Gedabek open pit mine in 2025. Drilling activities continued to be carried out for grade control purposes. \n   \n Gadir underground mine \n Four diamond drill holes totalling of 166 metres were completed in the first half of 2025. No underground sampling activities were carried out in 2025 as mining operations are complete and the mine was closed in 2025. \n   \n Gilar \n The area hosts two styles of mineralisation, gold in quartz veins and hydrothermal gold-copper. Three mineralisation bodies have been discovered. \n   \n During 2025, channel sampling of the walls of the main tunnel was carried out with 248 underground samples taken with a total length of 241 metres. Additionally, 50 underground core drill holes totalling 2,492 metres were completed in the southern and southwestern flanks of the deposit. These areas show significant potential for resource and reserve expansion. \n   \n To enable detailed exploration of the so-called Upper Zones (Zone-1 and Zone-2), dedicated exploration drifts are being developed from the main Gilar underground development galleries. These drifts will provide access for shallower underground diamond drilling, allowing more accurate delineation and evaluation of mineralisation within these upper zones to support the potential addition of resources. It is planned that the underground exploration drift to support underground drilling activities will be completed by approximately November 2026. \n   \n Uluxanli \n Uluxanli is a recently identified copper and gold target. During 2025, first-stage exploration activities at the Uluxanli (East Ertepe) area were completed. The program comprised assaying 575 soil geochemical samples, a detailed ground magnetic survey, XRD analyses, and comprehensive mineralogical and petrographic studies. An integrated interpretation of all acquired geological, geochemical and geophysical datasets is now being undertaken. Preliminary results have identified narrow (5 to 30 centimetres), parallel epithermal quartz veins hosting high-grade gold mineralisation. However, no associated bulk or stockwork-style mineralisation has yet been identified in the surrounding host rocks. \n   \n Zafar \n The geology of the area is structurally complex, comprising mainly of Upper Bajocian-aged volcanics. The mineralisation seems to be associated with a main northwest to southeast trending structure, which is interpreted as post-dating smaller northeast to southwest structures. Zafar is characterised by copper, silver, gold and zinc mineralisation. In the southwest area, outcrops with tourmaline have been mapped, which can be indicative of the potential for porphyry-style mineral formation. \n There was no geological exploration carried out at Zafar in 2025. However, all underground design preparation works for the Zafar deposit have been successfully completed. The deposit is now fully ready for the commencement of advance tunnelling and mining operations. Metallurgical laboratory test work has demonstrated consistently high leaching recoveries, confirming the favourable processing characteristics of the ore. \n Interpretation of updated anomaly maps indicates that Zafar has significant potential for additional mineralisation. \n Demirli Contract Area \n A reverse circulation drill programme was carried out in 2025 to determine the remaining resource in the current open pit and for grade control purposes. This continued the work which was started in 2024. 2,199 reverse circulation drill holes were completed in 2025 totalling 26,974 metres. Seven core drill holes totalling 1,208 meters were also completed in the central pit to investigate the potential for copper feeder zones, with preliminary results confirming encouraging copper grades. \n   \n A geotechnical investigation of the tailings dam was carried out in 2025 with eight geotechnical drill holes completed with a combined depth of 313 metres. Seismic geophysical studies were also carried out. The purpose of this work was to assess the structural stability of the tailings dam and its compliance with safety and environmental standards. \n   \n A comprehensive structural alteration map of the Demirli mine has been prepared and the drill hole database digitised. An initial residual ore resource report has been prepared and submitted to the Government of Azerbaijan. A more precise ore resource estimate will be prepared following further sampling of existing drill core and further drilling. 157 surface samples were collected to support this more precise estimate. \n   \n Interpretation of the geological, geochemical, and structural results indicate that the Demirli deposit and its surrounding flanges hold significant remaining ore potential. In particularly, the south Demirli area exhibits substantial unexplored mineralisation. Exploration drilling is planned in this area in the coming years \n   \n Gosha Contract Area \n Gosha mine \n The Gosha mine is an underground, narrow vein mine, situated in the Gosha Contract Area. It was initially thought to consist of two narrow gold veins, zone 13 and zone 5. Mining has taken place from both veins. A further vein, \"Hasan\", has also been discovered located immediately south of zone 5, which it intersects at one point. The host rock mostly exhibits silicification and kaolinisation alteration, which changes to quartz-haematite alteration in andesite. \n   \n There was no geological exploration carried out at the Gosha mine in 2025. \n   \n Boyuk Gishlag mineralisation occurrence \n Geological fieldwork activity was carried out in 2025 at the Boyuk Gishlag mineralisation occurrence. Reconnaissance work focused on assessing the mineralisation occurrences and identifying priority targets for future exploration campaigns. \n   \n Xarxar Contract Area \n Xarxar deposit \n No geological fieldwork was carried out at Xarxar in 2025. \n   \n Scanning of the existing Xarxar drill core was completed during 2025 using TerraCore technology. The scanning will support the development of a 3-D alteration model. This model is essential to identifying further mineralisation and to ascertain the best metallurgical methods to process the ore. TerraCore scanning is hyperspectral scanning which enables identification of anomalies not visible to the naked eye. The scanning was carried out by TerraCore staff in Azerbaijan using a TerraCore scanner imported into Azerbaijan. This is the first time hyperspectral scanning has been carried out in Azerbaijan. TerraCore and Data Rock have been contracted to interpret the hyperspectral data. \n   \n To further strengthen the JORC compliant resources of the Xarxar deposit, 1,400 core samples were submitted to ALS Laboratories (Ireland) for independent analysis and quality assurance. \n   \n Cayir \n Cayir is a new copper and gold target in the Xarxar Contract Area which extends into the Garadag copper mineralisation belt. Widespread mineralised quartz veins have been observed across the area, indicating strong prospectivity. Based on the encouraging results obtained to date, Cayir is a priority exploration target within the Company's portfolio. \n   \n During 2025, exploration activities were carried out. The initial phase of the geological sampling program has been successfully completed, with a total of 1,747 rock chip and 225 metres of trench samples collected and analysed. Alteration mapping and detailed ground magnetometric surveys have also been carried out. Integrated interpretation of the geological, geochemical and geophysical datasets has highlighted multiple priority target zones and reinforces the potential for gold and copper mineralisation within the area. Despite the presence of thick soil cover, exploration work has led to the identification of the Qızıl (Gold) mineralisation zone, which is considered highly prospective for gold. \n   \n Follow-up exploration programs are planned and will include more extensive geochemical sampling and a staged drilling campaign aimed at delineating and evaluating the identified mineralised area. \n   \n Garadag Contract Area \n No geological field work was carried out at Garadag in 2025. Detailed assessment continued of the historical exploration data and metallurgical studies to better understand the processing characteristics of the deposit's mineralisation.   \n   \n As part of the investigation into the potential for in-situ leaching of the Garadag ore body, underground mine design studies were undertaken in the year. A total of 12 geotechnical and hydrogeological drillholes were completed, with a cumulative depth of 1,423 metres. Following geotechnical and structural logging of core samples, selected samples will be sent to the laboratory for comprehensive geotechnical testing, including unconfined compressive strength and triaxial, tensile, shear, and plate load tests. Vibrating wire piezometers are being installed in the drillholes to monitor hydrogeological conditions. \n   \n Ordubad Contract Area \n Trenching continued in 2025 in the Dirnis and Destabashi areas with 1,286 metres completed yielding 659 channel samples. Trenches were dug with a depth of 10 metres to explore extensions of previously identified copper and silver mineralisation. Consistent with earlier trenching campaigns, results confirmed that mineralisation thickness increases by about 30 per cent. compared to surface expressions. \n   \n Vejnaly Contract Area \n No geological fieldwork was carried out in 2025 as the Group did not have access to the Contract Area. Now that access to the Contract Area has been restored, in-house geological fieldwork will start exploring known gold targets and targets identified by the \"WorldView-3\" study carried out in 2024. A detailed target mineralisation map has also been developed. \n   \n Kyzlbulag Contract Area \n During 2025, no field-based exploration activities were conducted at the Kyzlbulag Contract Area. The Company was granted full access to the Contract Area in April 2026 but small scale site visits were undertaken in 2025. \n   \n The Kyzlbulag Contract Area, located southwest of the Demirli Contract Area and covering approximately 300 square kilometres, has a known history of gold and copper and polymetallic mineralisation. Historical exploration records indicate the presence of the Kyzlbulag deposit and five additional polymetallic occurrences within the license boundary. According to Soviet-era (1989) and Azerbaijan State (1998) data, the Kyzlbulag deposit was estimated to contain approximately 78.8 million tonnes of ore, including 28.35 tonnes of gold, 32.40 tonnes of silver, and 99.25 thousand tonnes of copper. These historical figures have not yet been verified against modern reporting standards. The deposit is reported to have been mined during the period of Armenian occupation. \n   \n During 2025, the Group continued the digitisation and integration of all available historical geological, geochemical, and production records. These data are being combined with remote sensing interpretations and broader regional geological information to reassess the area's mineral potential and guide future exploration priorities. \n   \n Now that access to the Kyzlbulag Contract Area and former mine sites has been restored, field evaluations will be undertaken. These will include validation of historical mineralisation targets and an assessment of potential residual ore at the Kyzlbulag deposit. \n   \n Sale of the Group's products \n Important to the Group's success is its ability to transport its products to market and sell them without disruption. \n In the year ended 31 December 2025, the Group shipped all its gold doré to Switzerland for refining by MKS Finance SA. The logistics of transport and sale are well established and gold doré shipped from Gedabek arrives in Switzerland within three to five days. The proceeds of the estimated 90 per cent of the gold content of the doré is sold and revenue recognised within one to two days of receipt of the doré. The Group, at its discretion, can sell the resulting refined gold and silver bullion to the refiner. All sales of gold and silver bullion in 2025 were made to MKS Finance SA. \n The Gedabek and Demirli mine sites both have good road transportation links. The Group established two logistics centres in 2025, one each for its Gedabek and Demirli mine sites. These logistics centres, which have warehousing and material handling facilities, are both situated close to the main Baku to Georgia highway. Copper and precious metal concentrate is initially transported to the respective logistics centres by the Group. The concentrate is then collected by truck from the logistics centres by the purchaser. The Group sells its copper concentrate to three metal traders as detailed in note 6 to the Group financial statements. The contracts with each metal trader are periodically renewed and each new contract requires the approval of the Government of Azerbaijan. \n \n Copper Giant Resources Corp. (formerly Libero Copper & Gold Corporation) (\"Copper Giant\") \n Copper Giant owns the Mocoa copper property in Colombia. The Company's shareholding in Copper Giant was unchanged in 2025 with no further investment being made. The Group's interest was held as an equity investment throughout 2025. \n Further information can be found at https://coppergiant.co/. \n \n Principal risks and uncertainties \n Country risk in Azerbaijan \n The Group's wholly owned operations are solely in Azerbaijan and are therefore at risk of adverse changes to the regulatory or fiscal regime within the country. However, Azerbaijan is outward looking and desirous of attracting direct foreign investment and the Company believes the country will be sensitive to the adverse effect of any proposed changes in the future. In addition, Azerbaijan has historically had a stable operating environment, and the Company maintains very close links with all relevant authorities. \n Operational risk \n The Company currently produces all its products for sale at Gedabek and Demirli. Planned production may not be achieved as a result of unforeseen operational problems, machinery malfunction or other disruptions. Operating costs and profits for commercial production therefore remain subject to variation. The Group monitors its production daily and has robust procedures in place to effectively manage these risks. Planned production may also not be achieved due to lower ore being available than predicted by its geological models. The Company maintains active exploration and other geological programmes to minimise the risk. \n Commodity price risk \n The Group's revenues are exposed to fluctuations in the price of gold, silver and copper and all fluctuations have a direct impact on the operating profit and cash flow of the Group. Whilst the Group has no control over the selling price of its commodities, it has very robust cost controls to minimise expenditure to ensure it can withstand any prolonged period of commodity price weakness. The Group actively monitors all changes in commodity prices to understand the impact on its business. The directors keep under review the potential benefit of hedging which it carries out from time to time. The Group did not hedge any sales of copper and gold in 2025. \n Foreign currency risk \n The Group reports in United States Dollars and a large proportion of its costs are incurred in United States Dollars. It also conducts business in Euros, Azerbaijan Manats and United Kingdom Sterling. The Group does not currently hedge its exposure to any foreign currency exchange rate exposure, although it continues to review this periodically. \n Liquidity and interest rate risk \n The Group utilised various credit lines from several banks in Azerbaijan throughout 2025. This was primarily to provide working capital whilst the Gilar and Demirli mines were brought into production. The banks loans were all at a fixed rate of interest and therefore the Group had no interest rate risk in respect of bank loans during 2025. \n The Group also utilised a vendor financing facility which carries interest at a rate of CME Term SOFR plus a margin of 2 per cent. Given the size of the borrowing and relative stability of interest rates, the Group does not consider that this variable rate presents any material interest rate risk to the Group. \n \n Russian invasion of Ukraine and US/Iran war \n The Company is unaffected directly by the Russian invasion of Ukraine or the US/Iran war. It is also unaffected by Government or private individuals sanctioned as a result of these wars. The Company is subject to changing global macro-economic conditions as a result of these wars such as higher input costs. \n \n Key performance indicators \n The Group has adopted certain key performance indicators (\"KPIs\") which enable it to measure its financial performance. These KPIs are as follows: \n 1   Profit before taxation. This is the key performance indicator used by the Group. It gives insight into cost management, production growth and performance efficiency. \n 2   Net cash provided by operating activities. This is a complementary measure to profit before taxation and demonstrates conversion of underlying earnings into cash. It provides additional insight into how we are managing costs and increasing efficiency and productivity across the business in order to deliver increasing returns. \n 3   Free cash flow (\"FCF\"). FCF is calculated as net cash from operating activities, less expenditure on property, plant and equipment and mine development, and Investment in exploration and evaluation assets including other intangible assets. \n   \n Reza Vaziri \n President and chief executive \n 26  May 2026 \n   \n Financial review \n Currency of financial review \n References to \"$\" and \"cents\" are to United States dollars and cents. References to \"£\" and \"p\" are to United Kingdom Sterling pounds and pence. References to AZN are to the Azerbaijan New Manat. References to \"m\" are to million and some figures below may not sum due to rounding. \n Group statement of income \n The Group generated revenues in 2025 of $122.8m (2024: $39.6m) from the sales of gold doré, gold and silver bullion and copper and precious metal concentrate. The Group's revenues were higher in 2025 due to increased production due to a full year of operation of the Gedabek site and the start of operations of the Gilar and Demilri mines in the year and higher metal selling prices. \n The revenues in 2025 included $68.3m (2024: $37.1m) generated from sales of gold and silver bullion from the Group's share of the production of doré bars. Bullion sales in 2025 were 19,631 (2024: 15,251) ounces of gold and 20,935 (2024: 10,563) ounces of silver at an average price of $3,441 (2024: $2,432) per ounce and $37 (2024: $29) per ounce respectively. In addition, the Group generated revenue in 2025 of $54.5m (2024: $2.5m) from the sale of 29,695 (2024: 1,519) dry metric tonnes of copper and precious metal concentrate. The Group's concentrate sales in 2025 for the Gedabek and Demirli mines in 2025 were $41.4m and $13.1m respectively. The Group's revenue benefited in the year from a higher average price of gold at $3,441 (2024: $2,390) per ounce and a higher average price of copper at $9,797 (2024: $9,267) per tonne. The Group made buy and hold sales of copper concentrate in December 2025 of 4,444 dry metric tonnes totalling $8.6m (2024:nil). Buy and hold sales are where the inventory was not delivered to the purchaser at 31 December 2025. The inventory sold was kept on the Group's premises but segregated from other inventory and not available for sale. \n The were no precious metal or copper sales made under any hedging programme in 2025. In March and April 2024, 1,600 ounces of gold were sold under a hedging programme started in 2023 at an average price of $1,976.85 per ounce. The Group generated lower revenue in 2024 of $30,600 from the hedging programme, calculated by comparing the hedged sale price with the spot price at each date of sale. \n The Group incurred cost of sales in 2025 of $68.2m (2024: $49.7m) as follows:     \n \n \n \n \n \n   \n \n \n \n \n 2025 \n $m \n \n \n \n \n 2024 \n $m \n \n \n \n \n \n \n \n Gedabek \n \n \n 54.6 \n \n \n 49.7 \n \n \n \n \n \n Demirli \n \n \n \n \n 13.6 \n \n \n \n \n - \n \n \n \n \n \n \n Total cost of sales \n \n \n \n \n 68.2 \n \n \n \n \n 49.7 \n \n \n \n \n \n   \n The costs of sales at Gedabek in 2025 increased due to increased production and the opening of the Gilar mine eff...

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