Q2 2024 IAMGOLD Corp Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD second quarter 2024 operating and financial results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded.

Operator: As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. At this time, I'd like to turn the conference over to Graeme Jennings, VP of Investor Relations and Corporate Communications for IAMGOLD. Please go ahead, Mr. Jennings.

After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0.

Graeme Jennings: At this time, I'd like to turn the conference over to Graeme Jennings, VP Investor Relations and Corporate Communications for IAMGOLD. Please go ahead, Mr. Jennings.

Graeme Jennings: Thank you, operator, and welcome everyone to the second quarter 2024 operating and financial results conference call. Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Marthin Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, and Tim Bradburn, Senior Vice President, General Counsel, and Corporate Secretary. We are joining today from Ion Gold's Toronto office, which is located on Treaty 13 territory on the traditional lands of many nations, including the Mississaugas of the Credit, the Anishinabek, Chippewa, Haudenosaunee, and the Wendat people. At Ion Gold, we believe respecting and upholding Indigenous rights is founded upon relationships that foster trust, transparency, and mutual respect.

Graeme Jennings: Thank you, Operator, and welcome, everyone, to the second quarter 2024 Operating and Financial Results Conference Call.

Graeme Jennings: Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Marthin Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, and Tim Bradburn, Senior Vice President, General Counsel and Corporate Secretary.

Speaker Change: We are joined today from Ion Gold's Toronto office, which is located on Treaty 13 territory on the traditional lands of many nations including the Mississaugas of the Credit, the Anishinabek, Chippewa, Haudenosaunee, and the Wendat peoples.

Speaker Change: At IAMGOLD, we believe respecting and upholding Indigenous rights is founded upon relationships that foster trust, transparency, and mutual respect.

Speaker Change: Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the Cautionary Statements on Disclosures on Non-IFRS Measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading non-GAAP Financial Measures.

Speaker Change: With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information.

Graeme Jennings: Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the cautionary statements on disclosures of non-IFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced in this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams. Thank you, Graeme.

Speaker Change: This slide is referenced on this call and can be viewed on our website.

Renaud Adams: Thank you, Graeme, and good morning, everyone, and thank you for joining us. It was another exciting quarter for IMGO, with the first full quarter of operations at Gotay and another strong operating performance from Issaqaneh Westwood, putting us in a position to increase our overall guidance for the year. At a high level, I believe this quarter begins to paint the picture of what IMGO will ultimately look like. Col de Gaulle is now ramping up, providing for a higher production base, a lower cost profile, and shifting the density of her value to candidates. At a steady run rate, Cote d'Ivoire will be among the largest gold mines in Canada and a model for mining for modern mining done right for many decades to come.

Speaker Change: I will now turn the call over to our President and CEO , Renaud Adams.

Renaud Adams: Thank you, Graeme, and good morning, everyone, and thank you for joining us.

Renaud Adams: It was another exciting quarter for IMGO, with the first full quarters of operations at Gotay, and another strong operating performance from Issaqaneh Westwood, putting us in a position to increase our overall guidance for the year.

Renaud Adams: At a high level, I believe this water begins to paint a picture of what, ultimately, I Am Gold would look like.

Renaud Adams: Col de Gaulle is now ramping up, providing for higher production base, lower cost profiles, and shifting the density of her value to Canada.

Renaud Adams: At steady run rate, Cote d'Ivoire will be among the largest gold mines in Canada and a model for modern mining done right and for many decades to come.

Renaud Adams: This is then coupled with strong and predictable production in cash flow from Misakani Wasut. In addition, as a company, we are seeing our financial position growing stronger, quarter over quarter, with the potential for a significant step change in improvement next year when Cote is running at full steam, and our prepaid commitments are behind us. This will position us with a clear roadmap for success with strong free cash flow generation, where it will be essential to ultimately deliver the balance sheet and drive value accretions for our shareholders.

Renaud Adams: This is Dan Koppel with Strong and Predictable Productions in Cashflow from Mississippi County, Westwood.

Speaker Change: In addition, as a company, we are seeing our financial position growing stronger, quarter over quarter, with the potential for significant step change and improvement next year when Cote is running at full steam and our prepaid commitments are behind us.

Speaker Change: This will position us with a clear roadmap for success, which strong free cash flow generations will be essential to ultimately deliver the balance sheet and drive value accretions for our shareholders.

Renaud Adams: Next quarter, we continue to improve the business and get closer to our objective. With that, we will now dive into the operating and financial results and highlights for the quarter. Starting with health and safety, I am going to continue to demonstrate a non-wavering commitment to safety while I am gone.

Speaker Change: And next quarter, we continue to improve the business and get closer to our objective.

Speaker Change: With that, we will now dive into the operating and financial results and highlights for the quarter.

Speaker Change: Starting with health and safety, IMGOL has continued to demonstrate a non-wavering commitment to safety excellence.

Renaud Adams: It is our priority to ensure everyone goes home safe. In the second quarter, our total recordable injury frequency rate was 0.6, an improvement from the prior quarter. I want to commend and congratulate the SAPAN team, which recently surpassed the record health and safety milestone of 5 million hours of work with our record of all safety. Reaching triple zero over such a period is a monumental achievement in our industry and a testament to the professionalism and commitment to a culture of safety of our people and their colleagues.

Gaul: I am gone. It is our priority to ensure everyone goes home safely.

Speaker Change: In the second quarter, our total recordable injury frequency rate was 0.6, an improvement from the prior quarter. I want to commend and congratulate the SAPAN team.

Speaker Change: which recently surpassed the record health and safety milestone of 5 million hours work with our record of all safety incidents.

Speaker Change: Reaching triple zero over such a period is a monumental achievement in our industry and a testament to the professionalism and commitment to a culture of safety of our people in Burkina Faso.

Renaud Adams: Looking at operations on an attributable basis, IAMGOLD produced 166,000 ounces of gold in the second quarter, bringing the year-to-date production to 317,000. As we will get into a moment, the second quarter production was overdriven by Issa Khan being able to operate without disruption and benefiting from continued positive rate reconciliations. The continued ramp-up of Westwood as the mine benefits from the rehabilitation of the underground and opening of new mining faces, and, of course, the first quarter of production at Kootenay.

Speaker Change: Looking at operation, on an attributable basis, IAMGOLD produced 166,000 oz. of gold in the second quarter, bringing the year-to-date productions to 317,000 oz. of gold.

Speaker Change: As we will get into in a moment, the second quarter production results were driven by ISSA-CAN being able to operate without disruption and benefiting from continued positive greater conciliation. Thank you. Thank you. Thank you.

Speaker Change: The continued ramp-up of Westwood as the mine benefits from the rehabilitation of the underground and opening of new mining phases, and of course, the first quarter of production at Coté.

Operator: I am Gold, 2nd quarter, 2024, Operating and Financial Results, Conference Fall and Webcast. As a reminder, all participants are in list and only mode, and the conference is being recorded. After the presentations, there will be an opportunity to ask questions. To join the question queues, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

Renaud Adams: The strong production volume translated to cash costs and all-in sustaining costs of $1,071 an ounce and $1,617 an ounce, respectively. Further, capital expenditure continued to step down quarter over quarter, totaling $119.7 million in the second quarter, as Cote transitions into operations and sets the stage for IMGO to see growing free cash flow moving forward. Looking at our guidance, the strong first half positioned the company to beat on our operating guidance for the year.

Speaker Change: The strong production and sales volume translated to cash costs and all-in sustaining costs of $1,071 an ounce and $1,617 an ounce, respectively.

Speaker Change: Further, capital expenditure continued to step down quarter over quarter, totaling $119.7 million in the second quarter, as COVID-19 transitions into operations and setting the stage for IMGO to see growing free cash flow moving forward.

Graeme Jennings: At this time, I'd like to turn the conference over to Graeme Jennings, EP Investor Relations and Corporate Communications for I am Gold, please go ahead, Mr. Jennings. Thank you, operator, and welcome everyone to the 2nd quarter, 2024, Operating and Financial Results, Conference Call. Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Martin Finussen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, and Tim Bradburn, Senior Vice President, General Counsel and Corporate Secretary.

Speaker Change: Looking at our guidance, the strong first half positioned the company to beat on our operating guidance for the year. Accordingly, we have increased our production guidance and lowered our cost estimate for the year.

Renaud Adams: Accordingly, we have increased our production guidance and lowered our cost estimate for the year. On production, IM Gold has increased its 2024 Tribunal Gold Production Guidance for a second mine in Westwood to 495,000 to 440,000 ounces, up from 430,000 to 490,000 ounces, as both this minor has a strong first half of the year. At Cote, we are maintaining our guidance of 130,000 to 175,000 ounces on a 60% basis, but we now expect production to come in the lower end of this range as improvements are made to mail availability. But we will get more into this in a moment as we walk through each aspect.

Speaker Change: On production, I.M. Gold has increased 2024 Tribunal Gold Production Guidance per second in Westwood to 495,000 to 440,000 ounces of gold.

Graeme Jennings: We are joining today for May and Gold's Toronto Office, which is located on 2013 territory on the traditional lands of many nations, including the Mississaugas of the Credit, Don Schnabeck, Chippewa, Putin Shoney, and the Wendat peoples. At I am Gold, we believe, respecting and upholding Indigenous rights is found in upon relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures.

Speaker Change: up from 430,000 to 490,000 ounces previously.

Speaker Change: As both of these miners have a strong first half of the year.

Speaker Change: At COTE, we are maintaining our guidance of 130,000 to 175,000 ounces on a 60% basis.

Graeme Jennings: We encourage you to refer to the cautionary statements on disclosures on non-IFRS measures, including the presentation and the reconciliation of these measures in our most recent MDNA, each under the heading non-GAAP financial measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website.

Speaker Change: But we now expect productions to come in the lower end of this range as improvements are made to mail availability.

Speaker Change: But we will get more into this in a moment as we walk through each asset.

Renaud Adams: On operating costs, the 2024 cost guidance for Sacani Westwood combined is now expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold. And $1,700 to $1,825 for ASIC per ounce sold. This compares to the previous guidance estimate of cash costs per earn sales of $280 to $1,400 and ASEC per earn sales of $1,780 to $1,940. While we have brought our cost expectation down this year, the updated guidance ranges are above our year-to-date performance, as the increased guidance reflects the outperformance we saw in the first half, and grades are expected to come down at a slower rate as we enter a new mining phase, while inflationary pressures are easing.

Speaker Change: On operating costs, the 2024 cost guidance for Sacani Westwood combined is now expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold.

Renaud Adams: I will now turn the call over to our president and CEO Renaud Adams. Thank you, Graham, and good morning, everyone, and that thank you for joining us. It was another exciting quarter for I am Gold, with the first full quarters of operations at Gote, and now the strong operating performance from Mississaugane with SWOT, putting us in a position to increase our overall guidance for the year. At a high level, I believe this quarter begins to paint a picture of what, ultimately, I am Gold would look like.

Speaker Change: And $1,700 to $1,825 for ASEC per ounce sold.

Speaker Change: This compared to the previous guidance estimate of cash costs per earn sales of $280 to $1,400 and ASEC per earn sales of $1,780 to $1,940.

Speaker Change: While we have brought our cost expectation lower this year, the updated guidance ranges are above our year-to-date performance as the increased guidance reflects the outperformance we saw in the first half.

Renaud Adams: Gold to Gold is now ramping up, providing for higher production base, lower cost profile, and shifting the density of her value to Canada. At City Run rate, Gold to Gold will be among the largest gold mines in Canada, and a model for mining, for modern mining done right, and for many decades to come. This is then coupled with strong and predictable productions in cash flow from Mississaugane with SWOT. In addition, as a company, we are seeing our financial position growing stronger, water over quarter, with the potential for significant step change in improvement next year, when Cote is running at full steam and our pre-bake commitment are behind us. This will position us with a clear roadmap for success, which strong free cash flow generations will be essential to ultimately deliver to balance sheet and drive value accretions for our shareholders.

Speaker Change: and grades are expecting to come down at a saccone as we enter new mining phases.

Renaud Adams: Pricing for certain consumables, including finite and grinding media, remains in line with the level of experience in 2023. With that, I will pass the call over to our CFO to walk us through our financial results and position. Martin

Speaker Change: While inflationary pressures are easing,

Speaker Change: Pricing for certain consumables, including finite and grinding media, remains in line with the level of experience in 2023.

Speaker Change: With that, I will pass the call over to our CFO to walk us through our financials results and position. Martin?

Marthinus Theunissen: Thank you, Renaud, and good morning, everyone. In terms of our financial position, IMGOLD ended the quarter with cash and cash equivalents of $511.4 million, and our credit facility remains undrawn, equating to total liquidity of approximately $915.7 million. We note that within cash and cash equivalents, $55.9 million was held by Cote d'Azur Gold and $188.2 million was held by Essacat, a client that declared a dividend during the second quarter of $ 180 million for which the minority interest portion and withholding taxes were paid during the second quarter of 2024.

Martin: Thank you, Renaud, and good morning, everyone.

Martin: In terms of our financial position, IMGOLD ended the quarter with cash and cash equivalents of $511.4 million, and our credit facility remains undrawn, equating to total liquidity of approximately $915.7 million.

Martin: We note that within cash and cash equivalents, $55.9 million was held by Kotze Gold and $188.2 million was held by Essacan.

Renaud Adams: In next quarter, we continue to improve the business and get closer to our objectives, with that, we will not dive into the operating and financial results in highlights for the quarter. Starting with health and safety, I am all as continued to demonstrate a non-rein commitment to safety excellence. At I am all, it is our priority to ensure everyone goes home safely. In the second quarter, a total recordable injury frequency rate was 0.6, an improvement from the prior quarter.

Martin: Asa Klein declared a dividend during the second quarter of $180 million for which the minority interest portion and withholding taxes were paid during the second quarter 2024.

Marthinus Theunissen: The net portion due to the corporation of 151.9 million is expected to be paid by the end of this year. However, this is dependent on its account's estimated future cash flows from operations to leave a sufficient working cash balance in the country. Any unpaid amounts will be paid during 2025. We continue to see a risk in the ability to recoup all of the VAT receivables.

Martin: The net portion due to the corporation of $151.9 million is expected to be paid by the end of this year. However, this is dependent on Issyk-Kan's estimated future cash flows from corporations to leave a sufficient working cash balance in-country.

Martin: Any unpaid amounts will be paid during 2025.

Marthinus Theunissen: Though the company was able to sell a small amount to a local bank in Burkina Faso during the second quarter, the company still has considerable obligations and factors which will influence its liquidity during the next 12 months. During May, the company completed a board deal equity financing for aggregate gross proceeds of approximately $300.2 million, or over $287.5 million net of fees. The company intends to use the proceeds from the financing to partially finance the repurchase of the 9.7% interest in Kata Gold from Sumitomo on November 30, 2024, with the difference funded from available liquidity. Additionally, the company has to deliver 150 ounces under its gold prepay arrangements from July 2024 to June 30, 2025. The pre-pay arrangements were funded at the time of entering into the arrangements.

Martin: We continue to see a risk on the ability to recoup all of the VAT receivables.

Renaud Adams: I want to commend and congratulate the S&T, which recently surpassed the record health and safety milestone of 5 million hours work with our recordable safety incident. Reaching triple zero over such a period is a monumental achievement in our industry and a testament to the professionalism and commitment to a culture of safety of our people and their confesses. Looking at operation on an attributable basis, I am going to produce 166,000 ounces of gold in the second quarter, bringing the year-to-date production to 317,000 ounces of gold.

Martin: Though the company was able to sell a small amount to a local bank in Burkina Faso during the second quarter.

Martin: The company still has considerable obligations and factors which will influence our liquidity during the next 12 months.

Martin: During May, the company completed a board deal equity financing for aggregate gross proceeds of approximately $300.2 million, or $287.5 million net of fees.

Martin: The company intends to use the proceeds from the financing to partially finance the repurchase of the 9.7% interest in Cote d'Ivoire from Sumitomo on November 30, 2024, with the difference funded from available liquidity.

Renaud Adams: As we will get into a moment, the second quarter production was over driven by a second of being unable to operate without disruption and benefiting from continued positive rate of reconciliation, the continued ramp up of Westwood as the mine benefits from the rehabilitation of the underground and opening of new mining faces, and of course, the first quarter production of Gutei. The strong productions in sales volume translated to cash costs and all in sustaining costs of the $1,071 announced and $1,617 announced respectively.

Martin: Additionally, the company has to deliver 150 ounces under its gold prepay arrangements from July 2024 to June 30, 2025.

Marthinus Theunissen: The company will receive some cash payments at the time of delivery into the gold prepay arrangements based on the amount that the market price of gold at the time of delivery is, as follows. For 50,000 ounces that will be delivered from July to December of this year, the company will receive the difference between the spot price and $1,700 per ounce, capped at $2,100 per hour. For 31,250 ounces that will be delivered during the second quarter of 2025, the company will receive the difference between the spot price and 2100 per ounce, capped at 29 or 2925 per ounce.

Martin: The pre-pay arrangements were funded at the time of entering into the arrangements.

Martin: The company will receive some cash payments at the time of delivering into the gold prepay arrangements based on the amount that the market price of gold at the time of delivery as follows.

Renaud Adams: Further, capital expenditure continued to step down, quarter over quarter, totaling $119,7 million in the second quarter, ascoded transitions into operations and setting the stage for I am going to see growing free cash level moving forward. Looking at our guidance, the strong first half position the company to beat on operating guidance for the year. Accordingly, we have increased our production guidance and lowered our cost estimates for the year. On production, I am gold has increased 2022 for a tributal gold production guidance for a second in Westwood to 495,000 to 440,000 ounces of gold, up from 430,000 to 490,000 ounces previously, as both of this mine has a strong first half of the year.

Martin: For 50,000 ounces that will be delivered from July to December of this year, the company will receive the difference between the spot price and $1,700 per ounce, capped at $2,100 per ounce.

Martin: For 31,250 ounces that will be delivered during the second quarter in 2025, the company will receive the difference between the spot price and 2,100 per ounce capped at 2,925 per ounce.

Marthinus Theunissen: Lastly, the company expects to receive $84.4 million in gross proceeds in 2024 in respect of the closing of the remaining transactions arising from the remaining Bambook asset sale. Please refer to the Liquidity Outlook section of the MD&I for further details.

Martin: Lastly, the company expects to receive $84.4 million in gross proceeds in 2024 in respect of the closing of the remaining transactions arising from the remaining bambook asset sales.

Martin: Please refer to the Liquidity Arctic section of the MD&A for further details.

Marthinus Theunissen: Looking at Acuity Financial Results, high production resulted in lower unit costs as our operating costs remain in line with costs incurred during Q4 2023 and Q1 2024. With costs remaining in line with prior periods, the unrealized gold prices resulted in higher margins and higher free cash flow. Revenues from continuing operations start at $385.3 million from sales of 167,000 ounces on a 100% basis at a record average realized price of $2,294 per hour. The realized price includes the impact of the gold prepay arrangements delivered during the quarter that reduced the realized price by $60 per ounce.

Renaud Adams: At Gutei, we are maintaining our guidance of 130 to 175,000 ounces and our 60% basis, but we now expect productions to come in the lower end of this range as improvements are made to male availability, but we will get more into this in a moment as we walk through each asset. On operating costs, the 2024 Cove Guidance for a second in Westwood combined is now expected to be in the range of $1,175 to $1,200, and $75 for cash cost per arm sole.

Martin: Looking at our Q2 financial results, high production resulted in lower unit costs as our operating costs remained in line with costs incurred during Q4 2023 and Q1 2024.

Martin: With costs remaining in line with prior periods, the higher realized gold prices resulted in higher margins and higher free cash flow.

Martin: [inaudible]

Martin: Revenues from continuing operations totaled $385.3 million from sales of 167,000 ounces on a 100% basis at a record average realized price of $2,294 per ounce.

Renaud Adams: And $1,700 to $1,825 for a sec per arm sole. This compared to the previous guidance is to made of cash cost per arm-source of $280 to $4100 and a stake per arm-source of $1780 to $1940. While we have brought our cost expectation lower this year, the updated guidance ranges are above our year-to-date performance as the increased guidance reflects the outperformance we saw in the first half and grades are expecting to come down at a sakane as we enter a new mining phases. While inflationary pressures are easing, pricing for certain consumables including fine-eyed and grinding media remains in line with the level of experience in 2023.

Martin: The realized price includes the impact of the gold prepay arrangements delivered into during the quarter that reduced the realized price by $60 per ounce.

Marthinus Theunissen: The strong second quarter operating results coupled with the high gold price resulted in an adjusted EBITDA amount of $191.1 million, compared to $152.5 million in the previous quarter of the year, which is $127 million higher than the 63.8 million adjusted EBITDA number in the second quarter of 2023. Adjusted earnings per share was $0.16 for the quarter compared to $0.11 in the previous quarter and a $0.01 loss in the second quarter of 2023.

Martin: The strong second quarter operating results, coupled with the high gold price, resulted in an adjusted EBITDA amount of $191.1 million, compared to $152.5 million in the previous quarter of the year.

Martin: which is $127 million higher than the $63.8 million adjusted EBITDA number in the second quarter of 2023.

Martin: Adjusted earnings per share was $0.16 for the quarter compared to $0.11 in the previous quarter and a $0.01 loss in the second quarter of 2023.

Marthinus Theunissen: Looking at mine site free cash flow, which is calculated as cash flow from mine site operating activities less capital expenditures from operating mines, Westwood and Issacam produced a recent high of $140 million, including Westwood, which returned its second quarter of positive mine site free cash flow since the restart in June 2020, bringing its year-to-date title for the mine to $32.3 million. At SACAN, we note mine site free cash flow in the second quarter was $118.2 million. That is $81.8 million higher than $36.4 million during the second quarter of 2023.

Martin: Looking at mine site free cash flow, which is calculated as cash flow from mine site operating activities, less capital expenditures from operating mine sites, Westwood and Issacan produced a recent high of $140 million.

Martin Finussen: With that, I will pass the call over to our CFO to walk us through our financials, results, and position. Marching? Thank you Renaud and good morning everyone. In terms of our financial position, our goal ended the quarter of cash and cash equivalence of $511.4 million and our creative facility remains undrawn, equating to total liquidity of approximately $915.7 million. We note that with the cash and cash equivalence, $55.9 million was held by cards at gold and $188.2 million was held by SACAN.

Martin: including Westwood, which returned its second quarter of positive mine site free cash flow since the restart in June 2020, bringing its year-to-date title for the mine to $32.3 million.

Speaker Change: At SACAN, we note Mindsight Free Castro in the second quarter was $118.2 million, that is $81.8 million higher than the $36.4 million during the second quarter of 2023.

Martin Finussen: SACAN declared a dividend during the second quarter of $180 million for which the minority introsportion and withholding taxes repaid during the second quarter of 2024. The negative portion due to the preparation of $151.9 million is expected to be paid by the end of this year. However, this is dependent on SACAN's estimated future cash flow from operations to leave a sufficient working cash balance in country. Any unpaid amounts will be paid during 2025.

Renaud Adams: And with that, I will pass the call back to Renaud. Thank you, Renaud. Thank you, Martin.

Renaud Adams: Thank you, Martin. We will walk through our operating performance at ESACAN in Westwood before we dive into COTE. At a second, the mine reported tributary gold production of 111,000 ounces in the second quarter, up 26% from the prior year period and bringing the year-to-date total to 229,000 ounces. This was not a very strong quarter of operation for Second and was made possible by our mining operation being able to perform to plan in a quarter compounded with continued higher than expected grades.

Speaker Change: And with that, I will pass the call back to Renaud. Thank you, Renaud.

Renaud: Thank you, Martin. We will walk through our operating performance at ESACAN in Westwood before we dive into COTE.

Speaker Change: At a second, the mine reported a tributal gold production of 111,000 ounces in the second quarter, up 26% from prior year period, and bringing the year-to-date total to 229,000 ounces.

Martin Finussen: We continue to see a risk on the ability to recoup all of the VIT receivables, though the company was able to sell a small amount to a local bank to begin a faster during the second quarter.

Speaker Change: This was not a very strong quarter of operation for a second and made possible by our mining operation being able to perform to plan in the quarter compound with continued higher than expected grades.

Renaud Adams: Mining activities total 11 million tons in a quarter with only 2.2 million tons of ore mined as mining work through a higher strip sequencing of the mine, coupled with limited mining in a part of phase six due to localizing stability which requires enforcement, and has been addressed. Head grade remained high at 1.46 grams a ton due to the continued positive reconciliation of grade from the reserve model as we continue to mine deeper into phase five. This positive grade reconciliation in the deeper portions of Esakame was seen previously in phase five and is continuing in phase four and is expected to continue in phase five.

Martin Finussen: The company still has considerable obligations and factors which will influence our liquidity during the next 12 months.

Speaker Change: Mining activities total 11 million tons in a quarter with only 2.2 million tons of ore mined as mining worked through a higher strip sequencing of the mine coupled with limited mining in a part of phase six due to localizing stability which require enforcement.

Martin Finussen: During May, the company completed a board deal equity financing for aggregate gross proceeds of approximately $300.2 million or 287.5 million net of fees.

Speaker Change: and has been addressed since then.

Martin Finussen: The company intends to use the proceeds from the financing to partially finance the repurchase of the $9.7 interest in Kotago from Sumitomo on November 30, 2024, with the defense funded from available liquidity. Additionally, the company has to deliver 150 ounces under its gold people arrangements from July 2024 to June 30, 2025. The paper arrangements were funded at the time of entering into the arrangements. The company will receive some cash payments at the time of delivering into the gold paper arrangements based on the amount that the multiple buys of gold at the time of delivery as follows.

Speaker Change: That grade remained high at 1.46 grams a ton due to the continued positive reconciliations of grade from the reserve model as we continue to mine deeper into the phase 5.

Speaker Change: This positive grade reconciliation.

Speaker Change: And the deeper portions of Esakani was seen previously in phase 5 and is continuing in phase 4 and continuing in phase 5. However, we are seeing head grades decline in line with the life of mind plan.

Renaud Adams: However, we are seeing head grades decline in line with the life of mine plan as volumes from phases six and seven increase and the increase portion proportion of stock pipe is included in the mill fee. On a cost basis, it's a county reported second quarter cash costs of $1,081 per ounce and all in sustaining costs of $1,481. A slight increase from the prior quarter, but way below our previous guidance due to the strong production in gold sales.

Speaker Change: As volumes from phases 6 and 7 increase, and from increase portion, proportion of stock by bar included in the meal fee.

Speaker Change: On a cost basis, it's a county-reported second quarter cash costs of $1,081 per ounce and all in sustaining costs of $1,481.

Martin Finussen: For 50,000 ounces that will be delivered from July to December of this year, the company will receive the difference between the spot price and $1,700 per ounce cap at $2,100 per ounce. For 31,250 ounces that will be delivered during the second quarter in 2025, the company will receive the difference between the spot price and 2100 per ounce, capped at 29 or 2925 per ounce.

Speaker Change: A slight increase from the prior quarter, way below our previous guidance to the strong productions and gold sales.

Renaud Adams: With a strong first half of operations in 2024, a second production guidance has been revised upwards, with attributable production expected to be in the range of $380,000 to $410,000. This compares to the prior guidance of $330,000 to 370,000.

Speaker Change: With a strong first half of operations in 2024, SACANA production guidance has been revised upwards, with attributable production expected to be in the range of 380,000 to 410,000 ounces.

Martin Finussen: Lastly, the company expects to receive 84.4 million gross proceeds in 2024 in respect of the closing of the remaining transactions arising from the remaining back-backed book asset sales. Please refer to the liquidity-authlic section of the MD and I for further details.

Speaker Change: This compares to the prior guidance.

Renaud Adams: The mill is expected to continue operating at nameplate capacity, though at an average head grade slightly lower than in the first half of the year as per my plan. The cost guidance for SACAN has also been revised onward and is expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold and $1,575 to $1,675 for ASICs per ounce sold, approximately $100 to $125 per ounce improvement on both metrics due to the outperformance in the first half of the year.

Speaker Change: 330,000 to 370,000 ounces.

Speaker Change: Go.

Speaker Change: The mill is expected to continue operating at nameplate capacity, though at average head grade slightly lower than in the first half of the year as per the mine plan.

Speaker Change: Because guidance for SACAN has also been revised onward and is expected to be in the range of $1,175 to $1,275 for cash costs per ounce sold.

Martin Finussen: Looking at our Q2 financial results, our production result is in lower-unit costs, as our operating costs remain in line with costs incurred during Q4-2023 and Q1-2024. With cost-remining in-line with prior periods, the high-release gold price resulted in higher margins and higher free cash flow. Revenue from continuing operations starts with 385.3 million from sales of 167,000 ounces on a hundred percent basis at a record average real-ass price of 2294 dollar per ounce.

Speaker Change: and $1,575 to $1,675 for ASIC per ounce sold. Approximately $100 to $125 per ounce improvement on both metrics due to the outperformance in the first half of the year.

Renaud Adams: Capital expenditure guidance has been increased to approximately $175 million, primarily due to an increase in the strip ratio, not total tons mined, resulting in more mining costs being included in capitalized waste and equipment replacement. Esa Kanu continues to be a significant cash flow contributor for IMGOLD.

Speaker Change: Capital expenditure guidance has been increased to approximately $175 million, primarily due to an increase in the strip ratio, not total tons mined, resulting in more mining costs being included in capitalized waste and equipment replacement.

Martin Finussen: The real-ass price includes the impact of the gold pre-pay arrangements delivered into during the Q4 that reduced the real-ass price by $60 per ounce. The strong second-quarter operating results coupled with the high-goal price resulted in an adjusted EBITDA amount of $191.1 million. Compared to 152.5 million in the previous Q4 of the year, which is 127 million higher, than the 63.8 million adjusted EBITDA number in the second quarter of 2023. Adjusted earnings per share was 16 cents for the Q4 compared to 11 cents in the previous Q4 and a 1 cent loss in the second quarter of 2023.

Renaud Adams: With a current mine life through 2028, this operation has the capability to generate over a billion dollars of cash flow at current gold prices. We are continuing to examine opportunities to extend the mine life of SACAN and targeting options within defense to ensure the safety of our. Turning to Westwood, I want to congratulate the team on another improvement in the quarter. As the mine continues to test new highs in quarterly volumes from under, Great and production since the mine restarted in 2000, this improvement has meant that Westwood has generated, as Martin noted, positive mind-free cash flow of nearly $22 million in the second quarter, bringing the year-to-date total to just over $32 million.

Speaker Change: Esakani continues to be a significant cash flow contributor for IMGOLD. With a current mine life through 2028, this operation has the capability to generate over a billion dollars of cash flow at current gold prices.

Speaker Change: We are continuing to examine the opportunities to extend the mind-life of SACAN at targeting options within defense to ensure the safety of our teams.

Speaker Change: Turning to Westwood, I want to congratulate the team on another improvement in the quarter. As the mine continues to test new highs in quarterly volumes from underground,

Martin Finussen: Looking at man-side free cash flow, which is calculated as cash flow from man-side operating activities, they scan for the expenditures from operating man-sites, Westwood and SACAN produced a recent high of $140 million, including Westwood, which returned its second quarter of positive man-side free cash flow since the restart after the June in June 2020, bringing its year to die title for the mine to $32.3 million. At SACAN, we know that man-side free cash flow in the second quarter was 118.2 million, that is 81.8 million higher in the 36.4 million dollars during the second quarter of 2023.

Speaker Change: Great. And production since the mine restarted in 2021.

Speaker Change: This improvement has meant that Westwood has generated, as Martin noted, positive mind-free cash flow of nearly 22 million dollars in the second quarter, bringing the year-to-date total to just over 32 million dollars.

Renaud Adams: On operation, Westwood produced 35,000 ounces in a quarter, a significant 84% over the prior year period and bringing the year-to-date total to 67,000 ounces a year. Ore mines from underground continue to step up and at higher grades with 89,000 tons in the second quarter contributing to an average head grade from underground ore of 9.2 grams a ton.

Speaker Change: On operation, SWIFT produced 35,000 ounces in a quarter, a significant 84% over prior year period, and bringing the year-to-date total to 67,000 ounces a year today.

Speaker Change: Ore mined from underground continued to step up at a higher grade, with 89,000 tons in the second quarter contributing to an average head grade from underground ore of 9.2 grams a ton.

Renaud Adams: Milled throughput also increased in the quarter to 302,000 tons at an average blended head grade of 3.92 grams a ton and 92% recovery. The increase in throughput was driven by improved availability of 89% due to the ongoing maintenance program. The cost profile for Westwood continues to decline as operations improve; cash costs average $1,131 an ounce, and all in sustaining cash are rated promising $1,663, second quarter, continuing the trend of quarter over quarter cost improvement.

Renaud Adams: And with that, I will pass the call back to Renaud. Thank you Renaud. Thank you Martin.

Speaker Change: Milk throughput also increased in the quarter to 302,000 tons process at an average blended head grade of 3.92 grams a ton and 92% recovery.

Renaud Adams: We will walk through our operating performance at a SACAN in Westwood before we dive into Cotei. At a SACAN, the mine reported a tributal goal production of 100, 11,000 ounces in the second quarter, up 26% from prior year periods and bringing the year-to-date total to 129,000 ounces. This was a not a very strong quarter of operation for a SACAN, it made possible that our mining operation being able to perform decline in the quarter compound with continued higher than expected grades.

Speaker Change: The increase in throughput was driven by improved availability of 89% due to the ongoing maintenance program.

Speaker Change: The cost profile for Westwood continues to decline as operations improve.

Speaker Change: Cash costs averaged $1,131 an ounce, and all in sustaining cash over the promising $1,663 an ounce in the second quarter, continuing the trend of quarter-over-quarter cost improvements.

Renaud Adams: Mining activities total 11 million tons in a quarter, with only 2.2 million tons of ore mine, as mining worked through a higher strip sequencing of the mine, coupled with limited mining in a part of phase six due to the local island's ability which required enforcer and has been addressed. Smith. That grade remind high at 1.46 grams a ton due to the continued positive reconciliations of grade from the reserve model as we continue to mine deeper into the Phase 5.

Renaud Adams: Looking ahead, we have raised our guidance for this year with what we're now expected to produce between $115,000 and $130,000 and go at lower cash costs of $1,200 to $1,300 per ounce and ASIC of $1,775 to $1,900. In the fourth quarter, we will be issuing an updated technical report and mine plan for West, which will provide an updated mineral resource and reserve estimate and life of mine based on the last 2.5 years of mine optimization efforts at Westwood. Turning to Kodigo,

Speaker Change: Looking ahead, we have raised our guidance for this year with what we're now expected to produce between 115,000 to 130,000 ounces.

Speaker Change: at lower cash costs of $1,200 to $1,300 per ounce and ASIC of $1,775 to $1,900 per ounce.

Speaker Change: In the fourth quarter, we will be issuing an updated technical report and mind plan for Westwood.

Renaud Adams: This positive grade reconciliation in the deeper portions of the Sakana was synprivously in Phase 5 and is continuing in Phase 4 and continuing in Phase 5. However, we are seeing head grades decline in line with the life of mine plan as volumes from Phase 6 and 7 increase and from increased portion, proportion of stock price or included in the meal fee. On a cost basis, it's a kind of reported second quarter cash cost of the $1,081 per ounce and all in sustaining cost of the $1,481. The slight increase from the prior quarter weighed the lower previous guidance through the strong productions and go sales.

Speaker Change: which will provide an updated mineral resource and reserve estimate and life of mine based on the last 2.5 years of mine optimizations efforts at Westwood.

Renaud Adams: We couldn't be more impressed with the work of our teams on the ground, as they brought CODI to commercial production only four months after the initial gold pour on March 31st, 24, which was achieved within 90 days of our first pre-commissioning activity. The ramp-up of Gordie has seen the project hit significant milestones in its first few steps as We took the path of testing first the capacity of the main equipment that drives the ultimate nameplate object and then build availability as we ramp up.

Speaker Change: Thank you.

Speaker Change: Turning to Prodigo.

Speaker Change: We couldn't be more impressed with the work of our teams on the ground as they brought CODI to commercial productions.

Speaker Change: Only four months after the initial goal pour on March 31st, 24, which was achieved within 90 days of our first pre-commissioning activity.

Speaker Change: The ramp-up of CAUTI has seen the project hit significant milestones in its first few steps as a mine.

Speaker Change: We took the path of testing first the capacity of the main equipment that drive the ultimate nameplate objective, and then built availability as we ramped up.

Renaud Adams: With a strong first half of operations in 24, 2024, it's a kind of production guidance has been revised, upwards with a tributal production expected to be in the range of 380,000 to 410,000 ounces. This will be able to prior guidance of 330,000 to 370,000 ounces ago. The meal is expected to continue operating at name plate capacity, though, at average, head grades slightly lower than in the first half of the year as per my plan.

Renaud Adams: From early on, the primary components of the processing circuits, primary and secondary crushing, HPGR, conveyors, ball mill, leaching, etc., all have proven their capability to operate on their design load when provided with stable conditions. During the same period, we also took the time to allow the team to stop and correct several deficiencies that are usually the case in the early days of ramping up a large-scale facility. The first picture is about the whole first half, the second quarter. Forty-five days go by fast.

Speaker Change: From early on, the primary components of the processing circuits, primary and secondary crushing, HPGR, conveyors, ball mill, leaching, etc. all have proven their capability to operate under design load when provided with stable conditions.

Speaker Change: During the same period we also took the time to allow the team to stop and correct several deficiencies that it is usually the case that early days of ramping up a large-scale facility.

Renaud Adams: The cost guidance for Sakana has also been revised onward and is expected to be in the range of 1,100,000 to $1,200 per cash cost per ounce and 1,575 to 1,675 for A6 per ounce. Approximately a hundred to $125 per ounce improvement on both metrics due to the outperformance in the first half of the year.

Speaker Change: The first picture is about the whole first half, the second quarter.

Renaud Adams: In the second half of the quarter, efforts were made on slowly but surely cranking up the engine and testing the stability and the overall availability of the processing facility, while identifying all potential limiting factors to objectives of exiting the year at 90% nameplate. In early July, the team pushed for commercial production but, and Richa Veksev 30 days later with a nameplate production of 36,000 tons of cheese, on August 1st as the last.

Speaker Change: Forty-five days go fast.

Speaker Change: In the second half of the quarter, efforts were made on slowly but surely cranking up the engine and testing the stability and the overall availability of the processing facility, while identifying all potential limiting factors to objectives of exiting the year at 90% nameplate.

Renaud Adams: Capital expanded sure guidance has been increased to approximately a hundred and 75 million. Primarily due to an increase in the strip ratio, not total tons mine, resulting in more mining costs being included in capitalized waste and equipment replacing. Sakana continued to be in a significant cash low contributor for I&Gall. With a current mine life through 2028, this operation had the capability to generate over a billion dollars of cash low at current gold price.

Speaker Change: In early July , the team pushed the commercial production button and reached our objective 30 days later, with nameplate production of 36,000 tons of cheese on August 1st as the last day.

Renaud Adams: On the drive side, we can report that we are very pleased with the performance of our HPGR and believe that it will bring great value down the road. During the ramp-up phase, we have identified some improvement requirements on the dry side in order to achieve design availability and performance. The first one has to do with mitigating the effect of abrasiveness on wear parts. BRF-COTE is highly abrasive, which was always known, but with an actual effect to be expected.

Speaker Change: On the drive side, we can report that we are very pleased with the performance of our HPGR and believe that it will bring great value down the road.

Speaker Change: During the ramp-up phase, we have identified some improvements required on the dry side in order to achieve design availability and performance.

Renaud Adams: We are continuing to examine the opportunities to expand the mine life of Sakana targeting options within the fence to ensure the safety of our teams. Turning to Westwood, I want to congratulate the team on a notary improvement in the quarter. As the mine continues to test new highs and quarterly's volumes from underground, grades and production since the mine started in 2021. This improvement has meant that Westwood as generated has modern noted positive mine-free cash low of nearly $22 million in the second quarter, bringing the year-to-day total to just over 32 million.

Speaker Change: The first one has to do with mitigating the effect of abrasiveness on wear parts. The R at Côté is highly abrasive, which was always known, but with actual effect to be experienced.

Renaud Adams: Availability of the crushing and screening circuit in the second quarter was somewhat impacted by accelerating wear on the liners, feeders, and chutes due to disabrasiveness. The new lining material has been identified and tested with good results in some critical areas. Second, the continued core screening performance was also limited during Ramp-Up. A new panel design is being proposed. Finally, dust management was challenging in the early days, and in particular in the screening building.

Speaker Change: Availability of the crushing and screening circuit in the second quarters was somewhat impacted by accelerating wear on the liners, feeders, and chutes due to disabrasiveness.

Speaker Change: The new lining material has been identified and tested with good results in some critical areas.

Speaker Change: Second, the continued core screening performance was also limited during ramp-up and new panel designs are being proposed.

Speaker Change: Finally, Gas Management.

Renaud Adams: And while significant improvement has been made, more corrective action needs to be taken. We have tested additions of suppressants, both water and surfactant system, in critical areas with great results. So all in all, everything is solvable.

Renaud Adams: On operation, Westwood produced 35,000 ounces in the quarter, a significant 84% over a prior year period and bringing the year-to-date total to 67,000 ounces a year-to-date. Our minds from Underground continued to step up and at a higher grade, with 89,000 tones in the second quarter contributing to an average head grade from Underground R of 9.2 grams a ton. Mild throughput also increased in the quarter to 302,000 tones process, a denied-raged blend of head grade of 3.92 grams a ton and 92% recovery.

Speaker Change: was challenging in the early days, and in particular in the screening building, and while significant improvement has been made, more corrective action needs to be made. We have tested additions of suppressions, both water and surfactant system, in critical area with great results.

Renaud Adams: We have identified corrective actions, and we have initiated implementation. The company is planning a multi-day shutdown in September, at which time we will deploy key optimization to address all the bidding issues and improve the long-term availability of the plan. We are very confident in the ability of GO-A to ramp up well this year once we address this issue. Further, the power requirement of the plant has been lowered and hidden, providing important available capacity for Down the Road.

Speaker Change: So, all in all, everything is solvable. We have identified corrective actions, and we have initiated implementation of them.

Speaker Change: The company is planning a multi-day shutdown in September , at which time we will deploy key optimizations to address all the meeting issues and improve the long-term availability of the plan. We are very confident in the ability of GO-A to ramp up well this year once we address these issues.

Renaud Adams: The increase in throughput was driven by improved availability of 89% due to the ongoing maintenance program. The cost per file for Westwood continues to decline as operations improved. Cash costs average, $1,131 in all in sustaining cash are very to promising $1,606 in the second quarter, continuing the trend of quarter over quarter cost improvement. Looking ahead, we have raised our guidance for this year, which was when now expected to reduce between 150,000 to 130,000 ounces of gold at lower cash costs of $1,300 to $1,300 per ounce and a sake of $1,775 to $1,900 per ounce.

Speaker Change: Further, the power requirement of the plant has been lowered and unsuspected, providing important available capacity for down the road, and the second quarter mining activities achieve a new high of 10.5 million tons of total material mined.

Renaud Adams: And the second quarter mining activities achieved a new high of 10.5 million tons of total material. Further, great minds are continuing to come largely in line with our great control block model in the current life of the mine. Mining costs in a quarter, despite not yet running at full capacity, were comparable to Canadian open pit piers at just under $4 a tonne. An increase from the prior quarter due to temporary optimization activities on blasting patterns and production drilling, as well as some power fulfillment experienced in June due to an unseasonal heatwave.

Speaker Change: Further, great minds are continuing to come largely in line with our great control block model in the current life of mind.

Speaker Change: mining cost in a quarter despite not yet running at full run rate.

Speaker Change: were comparable to Canadian Open peers.

Speaker Change: at just under $4 a ton, an increase from the prior quarter due to temporary optimization activities on blasting patterns and production drilling, as well as some power curtailments experienced in June due to unseasonal heat waves.

Renaud Adams: On processing, milled throughput in the second quarter was 834,000 tons at an average head rate of 1.4 grams a ton for a total of 34,000 ounces produced, another 100. Revenue Circuit was successfully commissioned toward the end of the quarter, and recovery has responded well to the ramp-up of the operations, averaging 90%. In July, Cody Gold processed over 620,000 tons of ore with production of nearly 26,000 ounces of gold. We have maintained our guidance at CODI for this year, though we have guided to the lower end of the range of 220 to 290,000 ounces on 100% base.

Renaud Adams: In the fourth quarter, we will be sharing an updated technical report and mind plan for Westwood, which will provide an updated mineral resource and reserve estimate in life of mine based on the last 2.5 years of mine optimizations efforts at Westwood.

Speaker Change: On processing, milled throughput in the second quarter was 834,000 tons at an average head rate of 1.4 grams a ton for a total of 34,000 ounces produced at a 100% basis.

Speaker Change: [inaudible]

Speaker Change: The revenue circuit was successfully commissioned toward the end of the quarter, and recovery has responded well to the ramp-up of the operations, averaging 90 percent.

Renaud Adams: Turning to code-a-go, we couldn't be more impressed with the work of our teams on the ground as they brought code-a to commercial productions only four months after the initial gold poor on March 31, 24, which was achieved within 90 days or first pre-commissioning activities. The ramp up of code-a has seen the project hit significant milestone in its first few steps as a mine. We took the path of testing further capacity of the main equipment that drive the ultimate nameplate objective and then build availability as we ramp up.

Speaker Change: In July , Cote d'Ivoire processed over 620,000 tons of ore with productions of nearly 26,000 ounces of gold.

Speaker Change: We have maintained our guidance at CODI for this year, though we have guided to the lower end of the range of 220 to 290,000 ounces on a 100% basis.

Renaud Adams: As improvements to mail availability are made during the ramp-up of operations during the reduced and expected time prior to completion, we believe that exiting the year at nearly nameplate will set COTE and IAMGO for a huge success starting early 2021. I will now hand the call back to Martin for a brief update on projects ending this year. Thank you, Renaud.

Speaker Change: As improvements to mail availability are made during the ramp up of operations during the reduced and expected time.

Speaker Change: prior to completing the solution.

Speaker Change: We believe that exiting the year at nearly nameplate will set COTE and IAMGO for huge success starting early 2025.

Renaud Adams: From early on, the primary components of the processing circuits, primary and secondary crushing HBDR, conveyor's volume, leaching, et cetera, all have proven their capability to operate on their design load when provided with stable condition. During the same period, we also took the time to all of the team to stop and correct several deficiencies that it is usually the case that early days are ramping up a large-scale facility. The first thing took about the whole first half, the second quarter, 45 days go fast.

Speaker Change: I will now hand the call back to Marthin for a brief update on projects pending this year.

Marthinus Theunissen: I want to note that as we discuss project expenditures, all costs are being quoted on a 100% basis. Project and capital expenditures were $92.6 million in the second quarter and $288.9 million year to date. The expenditures include project expenditures of $30.7 million to support the completion of commissioning and certain scopes of non-critical path earthwork and infrastructure. Prior to the first Gulf War on March 31, project expenditures were $151.7 million, totaling $182.4 million for the year.

Marthin Theunissen: Thank you, Renaud.

Marthin Theunissen: I want to note that as we discuss project expenditures, all costs are being quoted on a 100% basis.

Marthin Theunissen: Project and capital expenditures were $92.6 million in the second quarter and $288.9 million year-to-date.

Speaker Change: The expenditures include project expenditures of $30.7 million to support the completion of commissioning and certain scopes of non-critical path earthwork and infrastructure.

Renaud Adams: In the second half, the quarter, efforts were made on slowly but surely cranking out the engine and testing the stability and the overall availability of the processing facility while it went fine, all potentially meeting factor to objective of exiting the year at 90% nameplate. In early July, the team pushed a commercial production button and reached our objective 30 days later with the name plate production of 36,000 tons of cheese on August 1st, as the last day.

Speaker Change: Prior to the first Gulf War on March 31, project expenditures were $151.7 million, totaling $182.4 million for the year.

Speaker Change: $24.5 million of operating expenditures related to milling and surface costs have been capitalized in the second quarter and $51.5 million year-to-date in support of the commissioning and ramp-up efforts in advance of achieving commercial production.

Renaud Adams: On the drive side, we can report that we are very pleased with the performance of our HPGR and believe that it will bring great value down the road. During the ramp-up phase, we have it then to apply some improvement required on the drive side in order to achieve design availability and performance. The first one has to do with mitigating the effect of a brazen effort on the where parts. The RSCOTE is highly abrasive, which was always known, but with actual effect to be experienced.

Speaker Change: Capital expenditures related to operations for the second quarter were $37.4 million and $55 million year-to-date.

Speaker Change: Capitalized waste stripping and capitalized operating costs are expected to be higher when compared to guidance, which is offset by lower capital related to operations due to some of the equipment being purchased through our increased leasing facility.

Speaker Change: The total of all of our capital expenditures of $454 million, as well as the timing of the expenditures, are in line with our forecast and guidance for the year.

Marthinus Theunissen: 24.5 million of operating expenditures related to milling and surface costs have been capitalized in the second quarter and 51.5 million year to date in support of the commissioning and ramp-up efforts in advance of achieving commercial production. Capital expenditures related to operations for the second quarter were $37.4 million and $55 million year-to-date. Capitalized waste stripping and capitalized operating costs are expected to be higher when compared to guidance, which is offset by lower capital related to operations due to some of the equipment being purchased through our increased leasing facilities. The total of all of our capital expenditures of $454 million, as well as the timing of the expenditures, are in line with our forecast and guidance for the year. Back to you, Renaud.

Renaud Adams: Availability of the crushing and screening circuit in the second quarter was somewhat impacted by accelerating wear on the liners, feeders and shoot due to the disabresiveness. The new lining material has been identified and tested with good results in some critical area. Second, the continued course-creening performance was also limited during ramp-up and new panel design are being proposed. Finally, dust management was challenging in the early days and in particular, in this screening building, it was significant improvement has been made.

Renaud Adams: Thank you, Martin. So, that is that. Our goal this year is very clear. We need to ramp up plan availability and utilization to exit the year at a throughput rate of approximately 90% of nameplate and start 2025 on a very strong footing. This brings us to the slide we always like to finish on, and this is what the future is for code. We are continuing to advance in our understanding of the impact of Gosselin and the potential of the program.

Renaud: Back to you, Renaud.

Renaud: Thank you, Martin.

Renaud: So that is that. Our goal this year is very clear. We need to ramp up the plan availability and utilization to exit the year at a throughput rate of approximately 90% of nameplate and start 2025 on a very strong footing.

Speaker Change: This brings us to the slide we always like to finish on, and this is what the future is for COTE.

Speaker Change: We are continuing to advance in our understanding of the impact of Gosselin and potential of the project.

Renaud Adams: At year-end 2023, we updated the Gosland Mineral Reserve and Resources Estimate with an additional 35,000 meters of drilling, which was drilled over the two years prior. This year itself, we are conducting a 35,000 meter drill program targeting the central zone between the pit shell, where we see indications of continuation of mineralization, and it put iterothermal breccia, as well as some deeper holes to understand the continuity of the mineralizations below the current pitch.

Renaud Adams: More corrective action needs to be made. We have tested additions of suppression, both water and surfactant, system and critical area, which great result. So all in all, everything is solvable. We have identified corrective actions and we have initiated implementation of that.

Speaker Change: At year-end 2023, we updated the Gosling Mineral Reserve and Resources Estimate with an additional 35,000 meters of drilling, which was drilled over the two years prior.

Speaker Change: This year itself, we are conducting a 35,000 meters drill program targeting the central zone between the pit shells, where we see indication of continuation of mineralization and hypothermal breaches.

Renaud Adams: The company is planning a multi-day shutdown in September, at which time we will deploy key optimization to address all of the issues and improve the long term availability of the plant. We are very confident in the ability of going to ramp-up well this year once we address these issues. Further, the power requirement of the plant has been lowered and unsuspected, providing important available capacity for down the road. In the second quarter, mining activities achieve a new high of 10.5 million tons of total material mine.

Speaker Change: as well as some deeper holes to understand the continuity of the mineralizations below the current pit shelf.

Renaud Adams: When we look at the resource and reserve statement, the coded deposit has an estimated mineral reserve on a 100% basis. A 7.6 million ounce, These reserves form the basis of the current economics of the project. On a measure and indicator resource basis, the coded debt is currently estimated at a total of $12.1 million. The adjacent Gosling Pit has an additional 4.4 million ounces of measure and educated resources and nearly 3 million ounces of inferred, bringing the project to a total of 16.5 million ounces of measure and educated resources and an additional 4 million ounces of inferred. The size of Cody and Gossman together put the project in the mind of a very exclusive company amongst large-scale producing Canadians.

Speaker Change: When we look at the resource and reserve statement, the coded deposit has estimated mineral reserve on a hundred percent basis.

Speaker Change: A $7.6 million announcement.

Speaker Change: These reserves form the basis of the current economics of the project.

Speaker Change: On a measure and indicator resource basis, the coded bed is currently estimated at a total of 12.1 million ounces.

Renaud Adams: Further, great mine are continuing to come largely in line with our great-controlled block model in the current life of mine. Mining costs in the quarter, despite not yet running at full run rate, were comparable to Canadian open with peers at just under the four dollars a tonne. An increase from the prior quarter to temporarily optimization activities on blasting patterns and production drilling, as well as some powers to tell men's experience in June due to unseasonal heatwave.

Speaker Change: The adjacent Gosling Pit has an additional 4.4 million ounces of measuring and indicator resources.

Speaker Change: and nearly 3 million ounces of insert.

Speaker Change: Bringing the project to a total of 16.5 million ounces of measure and dedicated.

Speaker Change: and an additional 4 million ounces of infertile.

Speaker Change: The size of Cody and Gossman together put the project in the mind of a very exclusive company amongst large-scale producing Canadian assets.

Renaud Adams: We expect to have the results of this program later this year, which will greatly inform our understanding of how to incorporate GoFLIN in remaining majority-catered into a potential future mind plant. So thank you all, and I look forward to a very exciting year ahead. With that, I would like to pass the call back to the operator for the Q&A. Operator?

Renaud Adams: On processing, mill throughput in the second quarter was 834,000 tons at the average head rate of 1.4 grams a tonne for a total of 34,000 ounces produced. How do 100% paid? Redness circuit was successfully commissioned toward the end of the quarter and recovery as we found responded well to the ramp-up of the operations averaging 90%. In July, Codigold process over 620,000 tons of ore with productions of nearly 26,000 ounces of[inaudible] We have made things our guidance that quoted for this year, though we have guided to the lower end of the range of 220 to 290,000 ounces on a hundred percent basis. As an improvement to mail, availability are majoring the rampage, off of racing, reducing expecting time prior to completing those solutions.

Speaker Change: We expect to have the results of this program later this year, which will greatly inform our understanding of how to incorporate GoFLIN in remaining Majority Indicated.

Speaker Change: into a potential future mine plant.

Speaker Change: So thank you all.

Speaker Change: And I look forward to a very exciting year ahead. With that, I would like to pass the call back to the operator for the Q&A. Operator?

Operator: Thank you. We'll now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, press star then 2. The first question comes from Anita Soni with CNBC World Markets. Please go ahead.

Speaker Change: Thank you. We'll now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys.

Speaker Change: To withdraw your question, press star then two.

Speaker Change: The first question comes from Anita Soni with CNBC World Markets. Please go ahead.

Anita Soni: Good morning, Renaud, and everyone. My first question is with respect to COTE. What factors are the main factors that drove the indication that you're going to be near the bottom end of the production guidance range at COTE? Is it throughput, grade, recovery rate, and then the second one, which probably relates to that, is how long will that shutdown last in September?

Renaud Adams: We believe that exciting the year at nearly name plate will set Cote and I am going for huge success starting early 2025.

Anita Soni: Good morning, Renaud, everyone. My first question is with respect to COTE. What factors are – what are the main factors that drove the indication that you're going to be near the bottom end of the production guidance range at COTE? Is it throughput, grade?

Martin Finussen: I will now hand a call back to Marthin for a brief update on projects ending this year. Thank you Renaud. I want to note that as we discuss project expenditures, all costs are being quoted on a hundred percent basis. Project and capital expenditures were 92.6 million in the second quarter and 288.9 million year to date. The expenditures include project expenditures of 30.7 million to support the completion of commissioning and certain scopes of non-critical bad earthwork and infrastructure.

Speaker Change: recovery rate and then the second one probably realize that it's how long will that shutdown last in September ?

Renaud Adams: Thanks for your questions, and as you're also the one that asked me early in the year how we set the original guidance. I would say that it's mostly a matter of the total fundamentals. So, if you recall, we set the guidance early in the year, 220 to 290, specifying that we were confident in the high grade, which is happening. But also basically saying that at perfect commissioning without any need, you know, for further downtiming so far with the 6.5 million ton process or so, we'll set the 200.

Speaker Change: Okay.

Speaker Change: Thanks for your questions, and as you're also the one that asked me early in the year how we set the original guidance. I would say that it's mostly a matter of the total tonnes of mills. So if you recall, we set the guidance early in the year, 220 to 290.

Martin Finussen: Prior to the first call for on March 31, project expenditures were 151.7 million, totaling 182.4 million for the year. 24.5 million of operating expenditures related to mulling and surface cost have been capitalized in the second quarter and 51.5 million year to date in support of the commissioning and ramp up efforts in advance of achieving commercial production. Capital expenditures related to operations for the second quarter were 37.4 million and 55 million year to date.

Speaker Change: for specifying that we work confidence in the high grade, which is happening.

Speaker Change: But also, basically saying that at a perfect commissioning without any need, you know, for further downtiming so far with the 6.5 million ton process or so, we'll set the 290.

Renaud Adams: As I explained in my comment, we really did take the time in Q2 to properly stop and correct things as we move forward. This has been our philosophy since day one, and I'm very pleased, and it's paying, maybe, a little pain in the short term on the total announcements, but we're definitely going to shift the profile starting in 25. So we did that in Q2, and as I mentioned, so to your point, originally speaking, we were probably thinking of the five days in September, but we're prepared to go further.

Speaker Change: As I explained in my in my comments,

Speaker Change: We really did take the time in Q2 to properly stop and correct things as we move forward. This has been our philosophy since day one, and I'm very pleased with its fame.

Martin Finussen: Capitalized waste tripping and capitalized operating costs are expected to be higher when compared to guidance, which is offset by lower capital related to operations due to some of the equipment being purchased who are increased leasing facility.

Speaker Change: Maybe a little pain in the short term on the total ounces, but we're definitely going to shift the profile starting in 2025.

Speaker Change: So we did that in Q2 and as I mentioned so to your point is Originally speaking we were probably thinking of the five days in September

Martin Finussen: The total of all of our capital expenditures of 454 million as well as the timing of the expenditures are in line with the forecasting guidance for the year, back to year and now. Thank you, Martin. So that is that.

Renaud Adams: So if it takes additional downtime, another five, seven days for a total of 10, 15, whatever it takes to correct all those issues. If it takes less, we may perform better than the lower end, but we just want to make sure that we're prepared to take the time. So let's call for a 10 to 15 max, and we'll see how it goes. largely the TUM process as we correct any of those emotions.

Speaker Change: But we're prepared to go further, so if it takes additional downtime, another 5-7 days for a total of 10-15, whatever it takes to correct all those issues.

Speaker Change: If it takes less, we may perform better than the lower end, but we just want to make sure that we're prepared to take the time and set the time.

Renaud Adams: Our goal this year is very clear. We need to ramp up the plan availability and utilization to exit the year at a throughput rate of approximately 90% of nameplate and start 2025 on a very strong footing. This brings us to this slide we always like to finish on and this is what the future is for coating. We are continuing to advance in our understanding of the impact of gasoline and potential of the project.

Speaker Change: So, let's call for a 10 to 15 max and we'll see how it goes for the remaining, so largely the term process.

Anita Soni: And then I noticed you provided mining costs per ton for Q2. Thank you for that. I know and I also know that it's a relatively short period of time since you declared commercial production on August 7, but can you give us an indication how the processing costs are going at this stage?

Speaker Change: As we correct angles, we will show it.

Speaker Change: Okay, thank you. And then I noticed you provided mining costs per ton for the Q2. Thank you for that.

Speaker Change: I know it, and I also know that, you know, relatively.

Speaker Change: Short period of time since you've declared commercial production on on August 7th But can you give us an indication how the processing costs are going at this stage?

Renaud Adams: At year and 2023, we updated the gasoline mineral reserve and resources estimate that in addition all 35,000 meters of draining, which was drilled over at a two years prior. This here itself, we are conducting a 35,000 meters drill program targeting the central zone between the pitch shell where we see indication of continuation of mineralization and for the digital thermal breaches as well as some deeper hope to understand the continuity of the mineralizations below the current pitch.

Marthinus Theunissen: Mark it? Mark it as well, thank you. Good morning, Anita.

Marthinus Theunissen: The processing cost on a total basis is actually well within our expectations and our plans. There are, of course, some additional costs being incurred as they are fixing or replacing certain things. But when we look at where we are, we expect the dollar per tonne cost when we get to the end of the year to be in the ranges that we guided and disclosed previously. So, in line with the 43-101 with slight increases because of inflation, but also we won't be at 100% yet. Our expectations for the cost of the mill have not changed at this point.

Speaker Change: Marquez, Marthinus Theunissen

Speaker Change: Good morning, Anita. The processing cost on a total basis is actually well within our expectation and our plans.

Marthinus Theunissen: There is of course some additional costs being incurred as they are fixing or revising certain things.

Marthinus Theunissen: But when we look at where we are...

Marthinus Theunissen: We expect that...

Renaud Adams: Michelle. When we look at the resource and resource statement, the coded deposit has a estimated mineral reserve on 100% basis, a 7.6 million ounce. This reserve formed a basis of the current economics of the project. On a measure and an educated resource basis, the coded debt is currently estimated at a total of 12.1 million ounces. The adjacent Gaussian debt has an additional 4.4 million ounces of measure and educated resources, and nearly 3 million ounces of infert, bringing the project to a total of 16.5 million ounces of measure and the dedicated and an additional 4 million ounces of infert.

Marthinus Theunissen: the dollar per ton cost when we get to the end of the year.

Marthinus Theunissen: to be in the ranges that we guided and discussed previously. So in line with the 43-101 with slight increases because of inflation, but also just we won't be at 100% yet, but

Marthinus Theunissen: Our expectations on the cost of the mill have not changed at this point.

Marthinus Theunissen: I think, I think Martin, it's fair to say that, you know, the range of the 10 to 15 is just a matter of the tonnes mill price. So we were still low, globally low, with 839,000 tonnes of mill in the second quarter, but with only one month of 620. So we're expecting to get closer to or, you know, to the 10 objective, 10 to 11 objective as we exit the year. But it's really a matter of time.

Marthinus Theunissen: I think I think Martin is fair to say that you know the range of the 10 to 15 is just a matter of the time

Martin: So we were still low, globally low, with 839,000 tons of mail in the second quarter.

Martin: Well, with only one month of 6-20, so we're expecting to get closer to the 10-11 objective as we exit the year. But it's really a matter of time now.

Renaud Adams: The size of Cody and Gaussian together put the project in the mind in the very exclusive company amounts large scales producing Canadian assets. We expect to have the results of this program later this year, which will greatly inform our understanding of how to incorporate Gosslyn in remaining measure and educated into a potential future of my plan.

Renaud Adams: And that power, as you mentioned, that you're using less power, is that factoring into that lower, I guess, benefit on cost?

Speaker Change: And that power, as you mentioned, that you're using less power, is that factoring into that lower, I guess, benefit on cost?

Renaud Adams: Yeah, but also, power, even though it's a massive operation, the power cost per kilowatt would be extremely low at the coast, as we manage these, and we're expecting one of the lowest costs per kilowatt or, you know, pretty much in the industry. So, yes, this is, but the real benefit beyond potentially saving is the opportunity of using this extra power down the road. As we've well documented, there's some certain that, you know, like the 72 megawatts, so you use it how you want, right?

Speaker Change: Yeah, but but also power, even though it's a massive, it's a big operation, power cost per kilo water would be extremely low at Cote.

Renaud Adams: So thank you all and I look forward to a very exciting year ahead.

Speaker Change: as we manage these and

Speaker Change: We're expecting one of the lowest costs, you know, per kilowatt, you know, pretty much in the industry. So yes, this is, but the real benefit beyond potentially saving is the opportunity of using this extra power down the road.

Operator: With that, I would like to pat the call back to the operator for a Q&A operator. Thank you. We'll now begin the question and answer session. To join the question, Q, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, press star then two.

Speaker Change: As we well documented, there's some, you know, certain that, you know, like the 72 megawatts, so you use it how you want, right? And, and this is what we're the most excited about is we feel that the main equipment and the web and the website.

Renaud Adams: And this is what we're most excited about, we feel that the main equipment and the web and the website. I may drive more tons down the road, that's the main point. It has to be proven on a daily basis, but what we've seen so far is that we're definitely using less power for the same throughput.

Wayne Lam: The first question is definitely, we'll see you in the world market. Please go ahead. Good morning, we're not everyone. My first question is this, respect to co-tay. What factors are, where are the main factors that drove the indication that you're going to be near the bottom end of the production guidance range at co-tay? That's Reput, Grade, Recovery Rate, and then the second one, probably realize that it's how long will that shutdown last in September?

Speaker Change: and may drive more tons down the road. That's the main point. It has to be proven on a daily basis.

Speaker Change: What we've seen so far is we're definitely using less power for the same throughput.

Renaud Adams: And then just an idea of in terms of the build out in the summertime. I noticed in my mind the mining rates on ore were similar to last quarter. So I'm just assuming you guys are a little bit more focused on building the tailings dam over the summer months. Is that correct? And when how many how many tons do you have to deliver to the tailings dam in Q3?

Speaker Change: And then just an idea of, in terms of the build-out in the summertime, I noticed in my...

Speaker Change: Mining rates on ore were similar to last quarter so I'm just assuming you guys are a little bit more focused on building the tailings dam over the summer months is that correct and when how much how much how many tons do you have to deliver to the tailings dam in Q3?

Wayne Lam: Thanks for your questions and as you're also the one that asked me early in the year, how we set the original guidance. I would say that it's mostly a matter of the total ton of meals. If you recall, we set the guidance early in the year of the 220 to 90, specifying that we work confidence in the high grade, which is happening, but also basically saying that at a perfect commissioning without any need, you know, for further down time and so far, with the 615 million in-term process or so, we'll set the 290 to 290.

Renaud Adams: I don't have the details of the tons, but as described as well in the 43-101, so we're basically executing the whole phase two, right? And this, combined with the fact, you know, of the throughput, the ramp-up, will position us towards the 18 months of capacity. And then as we move forward, this summer, we'll add. But yes, we're completing the phase two that we initiated last year. We're completing it this year.

Speaker Change: I don't have the details of the tons, but if you recall, and as described as well in the 42-101, so we're basically...

Speaker Change: executing the whole phase two, right? And this will, combined with the fact, you know, of the throughput, the ramp-up, will position towards the 18 months of capacity.

Speaker Change: and Ken Maswig, most of all.

Speaker Change: This summer will add but yes, we're we're completing the phase two that we've initiated last year We're completing it this year and that and then by fall We should have minimum of 18 months ahead of us and then we'll continue on the on a yearly basis to raise and Our objective is to be comfortably sitting at least

Renaud Adams: And then by fall, we should have a minimum of 18 months ahead of us, and then we'll continue on a yearly basis to increase. And our objective is to be comfortably sitting at least under 24 months beyond.

Wayne Lam: As I explain in my comments, we really did take the time in Q2 to properly stop and correct things as we move forward. This has been our philosophy since day one, and I'm very pleased that it's paying maybe a little pain in the short term on the total analysis, but we're definitely going to shift the profile starting in 25. So we did that in Q2 and as I mentioned, so to your point, our regionally speaking, we were probably thinking of the five days in September, but we're prepared to go further.

Anita Soni: And my last question, just in terms of stockpile levels, can you tell us how many tons of ore you have stockpiled ahead of the mill right now and what the average grade is there?

Speaker Change: I had a lot.

Speaker Change: And my last question just in terms of stockpile levels, can you tell us how many tons of ore you have stockpiled ahead of the mill right now and what the average grade is there?

Renaud Adams: Renaud, you got this? Yes. Good morning, Anita.

Anita: Renaud, you got this? Yes. Good morning, Anita. So, so far we have 8 million tons grading at 0.75. We have different category of stockpiles with

Wayne Lam: So if it takes additional downtime and not a five, seven days for total of 10, 15, whatever, it takes to correct all those issues. If it takes less, we may perform better than the lower end, but we just want to make sure that we're prepared to take the time in September. So let's call for a 10 to 15 next and we'll see how it goes so that it remains. So largely the term process, and as we correct him, those are the most always.

Renaud Adams: So, so far, we have 8 million tons grading at 0.75. We have different categories of stockpiles with DirectFeed, iGridore, iGridore, and LowGradeOre. So, so far, we are pretty satisfied with the level of the stockpiles and also with the reconciliation on the high-grade category.

Speaker Change: There are actually high-grade ore, and high-grade ore, and low-grade ore. So, so far we are pretty satisfied with...

Speaker Change: The level of stockpile and also with the reconciliation on the high-grade category.

Renaud Adams: And then you mentioned, I think, in the, that you're directing more higher grade from the pit to the mill. What would that high grade be on average?

Speaker Change: And then you mentioned, I think, in the, that you're directing more higher grade from the, from the pit to the mill. What would that high grade be on average?

Wayne Lam: Okay, thank you. And then I noticed you provided mining costs per ton for the Q2. Thank you for that. I know, and I also know that, you know, relatively short period of time since you declared commercial production on August 7th, but can you give us an indication how the processing costs are going at this stage? Mark Good morning, Anita. The processing cost on a total basis is actually well within our expectation and our plans.

Renaud Adams: We define our grade as whatever is above the 0.7, 0.8 gram per ton category. So right now, we have a good, fair amount of stockpile at 1.6 grand per tonne in front of us, and we also have some Renaud Mines at 114.

Speaker Change: We define our grade whatever is above the 0.7, 0.8 gram per ton category. So right now we have...

Speaker Change: A good fair amount of stockpile at 1.6 grand per tonne.

Speaker Change: in front of us.

Speaker Change: and we have also some Renaud Mines at 114.

Renaud Adams: We'll try to keep the mill towards the 1.5 till the end of the year. We did very well in July as well. So there are no issues or reason to believe we won't deliver the grade. So it's really about cranking up the tonnage throughput, but the mine has been doing very well. Oh, okay. Thank you.

Speaker Change: So we'll try to we'll try to keep the mail towards, you know, the 1-5 till the end of the year We did very well in July as well. So so there is no there is no Issues or reason to believe, you know, we won't deliver the great. So it's it's really about

Wayne Lam: There is of course some additional costs being incurred as they are fixing or repising certain things, but when we look at where we are, we expect the dollar per ton cost when we get to the end of the year, to be in the ranges that we guided and disclosed previously. So when I'm at the 43101 with slight increases because of inflation, but also just we won't be at 100% yet, but our expectation on the cost of the mall have not reduced at this, or have not changed at this point.

Operator: Okay, thank you. That's it for my questions, and congratulations on hitting commercial production.

Speaker Change: at cranking up the tonnage throughput. But the mine has been doing very well so far.

Speaker Change: Okay, thank you. That's it for my questions and congratulations on hitting commercial production.

Wayne Lam: The next question is from Wayne Lam with RBC. Please go ahead.

Speaker Change: Thank you so much.

Speaker Change: The next question is from Wayne Lam with RBC. Please go ahead.

Renaud Adams: Yeah, thanks, guys. Morning, everyone. I'm just wondering, maybe at CAHOTE, if you might be able to speak to the performance of the autonomous operations to date on the haulage and drilling and just where the challenges have been and how you mitigate those risks.

Wayne Lam: Thanks, guys. Morning, everyone. I'm just wondering, maybe at CAHOTE, if you might be able to speak to the performance of the autonomous operations to date on the haulage and drilling and just where the challenges have been and how you've mitigated those risks.

Wayne Lam: I think, I think, Martin, it's fair to say that, you know, the range of the 10 to 15 is through some matter of the tons, no price. So we, we're still low, globally low, with 839,000 tons in the second quarter, but with only one month of 620, so what we're, we're expecting to get closer in all to the 10 objectives, 10 to 11 objectives as we exit the year, but it's really a matter of time.

Renaud Adams: I wouldn't call too many risks to be mitigated. I think every quarter that goes by, we get more comfortable with Autonomous Pollage. And it's been operating very well. And Renaud just mentioned the stockpile and everything. That's been processed. So basically, every single tonne that's been put on the stockpile, you know, has been with Autonomous Trucks and has been performing extremely well as a bearer, availability, and so forth. So I honestly do not see any issues with them.

Speaker Change: I wouldn't call too many risks to be mitigated. I think more every quarter that goes by we get more comfortable.

Speaker Change: with Autonomous College and it's been operating very well and Renaud just mentioned the stockpile and everything that's been processed so basically every single ton that's been put on the stockpile you know has been with

Wayne Lam: And that power, as you mentioned, that you're using less power is that factoring into that lower, I guess, benefit on cost. Yeah, but but also power, even though it's a massive, it's a big operation. Power cost per kilowatt, would be extremely low at cost as we manage fees. And we're expecting one of the lowest costs, you know, to the water, you know, pretty much in the industry. So yes, this is, but the real benefit beyond potentially saving is the opportunity of using this extra power down the road.

Speaker Change: with autonomous trucks, and has been performing extremely well as a barrier.

Speaker Change: availability and so forth. So I honestly do not see any issues with them. And, and hopefully, over time, we could be even better and with our drilling automation as well. So working hard on both.

Renaud Adams: And, hopefully, over time, we could be even better with our drilling automation as well. So we're working hard on both. But Autonomous is absolutely working beautifully, and not to underestimate the health and safety aspect of not having operators behind the steering. It's not about cutting jobs; it's really about improving and modernizing our operations and making them safer. But so far, so good. Excellent. I'll give a very high score to the implementation of Autonomous College. I will redo it anytime.

Speaker Change: But Autonomous is absolutely working beautifully.

Speaker Change: and not to underestimate as well the health and safety aspect of not having operators behind the steering. It's not about cutting job, it's really about improving modernizing our operations and make it safer.

Wayne Lam: As we well documented, there's some, you know, certain that, you know, like the 72 million watts, so you use it how you want, right? And this is what we're the most excited about is we feel that the main equipment and the web on the website and may drive more tons down the road, that's the main plate. It has to be proven on a state of basis, but what we've seen so far is we're definitely using less power for the central book.

Speaker Change: Safer.

Speaker Change: But so far so good. Excellent. I'll give a very high score to the implementation of Autonomous College. I will redo it anytime.

Renaud Adams: Great, sounds like things are going pretty well. Maybe moving to Westwood, just on the grades there, which seem, you know, pretty positive relative to the reserve. Do you see those grades continuing through the year? And then, with the upcoming technical report, do you see upside to the targeted run rate from the underground beyond 900 tonnes per day? And given the strong performance of the mine now that the underground is now rehabilitated, do you envisage that asset as one to keep in the portfolio longer term? Or could it potentially be classified more as non-core?

Speaker Change: Great, sounds like things are going pretty well. Maybe moving to Westwood, just on the grades there, which seem...

Wayne Lam: And then just an idea of in terms of the build out in the summertime, I noticed the mining rates on or were similar to last quarter. So I'm just assuming you guys are a little bit more focused on building the tailings down over the summer months. Is that correct? And when, how much, how much, how many tons do you have to deliver to the tailings down in Q3? I don't have the details of the tons, but if you recall them as describe as well in the 43101.

Speaker Change: You know, pretty positive relative to the reserve.

Speaker Change: Do you see those grades continuing through the year? And then with the upcoming technical report, do you see upside to the targeted run rate from the underground beyond 900 tonnes per day?

Speaker Change: Given the strong performance of the mine now with the underground now rehabilitated, do you envision that asset as one to keep in the portfolio longer term, or could it potentially be classified more as non-core?

Wayne Lam: So we're basically executing the whole phase two, right? And this will combine with the fact, you know, of the throughput, the ramp up, we'll position towards the 18 months of capacity, and then as we move up this summer, we'll add. But, yes, we're completing the phase two that we've initiated last year. We're completing it this year. And then by fall, we should have minimum of 18 months ahead of us. And then we'll continue on the, on the yearly basis to raise an objective is to be comfortably sitting at least on the 24 months beyond my head of life.

Renaud Adams: Then I'll go another. My KPI is average water.

Speaker Change: The

Speaker Change: I'll go another. My KPI is, in every quarter, I've seen the asset ramping up with Morton from underground, the overall grade improving from underground.

Renaud Adams: I've seen the asset ramping up with Morton from underground, the overall grade improving from underground. We're sitting on a reserve of roughly 10, 10.4 grams a ton. And that's the ultimate objective. You need to position yourself at some point where you start mining at the reserve grade at Westwood. And this is where you're going to feel that you have reached a certain stability and sustainability. So, pretty close to, we could be basically one quarter away from achieving it.

Speaker Change: We're sitting on the reserve of roughly 10, 10.4 grams a ton reserve.

Speaker Change: And that's the ultimate objective. You need to position yourself at some point where you start mining at the reserve rate at Westwood, and this is where you're going to feel that you have reached a certain stability and sustainability.

Speaker Change: So pretty close to, we could be basically one quarter away of reaching. Once you get that, you want, like I said, you know, to continue to operate along this line.

Wayne Lam: And my last question just in terms of stockpile levels. Can you tell us how many tons of ore you have stockpiled ahead of the mill right now and what the average grade is there? Bruno, you got this? Yes. Good morning, Anita. So, so far we have eight million tons grading at 0.75. We have different category of stockpiles with. They're actually I grade ore and I grade ore and low grade ore. So, so far we're pretty satisfied with the level of stockpile and also with the reconciliation on the I grade category.

Renaud Adams: Once you get that, like I said, you want, like I said, to continue to operate along this line. We're extremely, extremely pleased with how Westwood has performed and will continue to perform in the cash flow. So, I'm comfortable to say that at this stage, you know, we're very pleased with both Isakani and Westwood. And we definitely can see these two mines continue being a big, big, collaborator, if you will, you know, to our story and contributor to our story.

Speaker Change: We're extremely, extremely pleased with how Westwood has performed.

Speaker Change: and continue to perform and the cash flow. So comfortable to say that at this at this stage, you know, we're very pleased with both Issa Khan and Westwood. And we definitely can see these two minds continue being a big, big

Speaker Change: collaborator, if you will, you know, to our and contributor to our story.

Renaud Adams: Having said that, I don't think we've seen the end of the optimization of Westwood. So we're going to put the 42-101. We want to see what we can do, where we could get, and, as I said, you know, strong production profiles and improving free cash flow. So we're very, very pleased with the total tons we see. Bruno, I'm getting a bit wet here, so what do you see down the road?

Wayne Lam: And then you mentioned, I think in the that you're directing more higher grade from the, from the pit to the mill, what was that high grade B on average? We define I grade whatever is that both the 0.7.8 gram per ton to the area. So, right now we have a good fair amount of stockpile at 1.6 gram per ton in front of us. And we have also some round of our mind at 114.

Speaker Change: Having said that, I don't think so we've seen the end of the optimization of Westwood. So we're going to put the 42-101. We want to see what we could do, where we could get

Speaker Change: And as I said, you know, strong production profiles and improving and free cash flow. So we're very, very pleased. On the total tons we see...

Speaker Change: getting wet a bit here. So, what do you see down the road?

Wayne Lam: So, we'll try to, we'll try to keep the mill towards, you know, the 1.5 till the end of the year. We did very well in July as well. So, so there is no, there is no issues or reason to believe you know we won't deliver the grade. So, it's, it's really about cranking up the ton. But the mine has been doing very well. Okay. Thank you. That's my question.

Bruno Lemelin: Thank you, Renaud. Actually, the performance from underground is getting better and better due to all the work we've done over the last two years and a half. It's proved to be very beneficial for us and our ability to reach our targets. 900 tons per day. Of course, we have a vision to increase this. Don DeMarco, Bruno Lemelin, Jerzy Orzechowski, Renaud Adams, Don DeMarco, Bruno Lemelin, with the new block model. So at that time, we'll be able to give more insight related to that mining plan.

Speaker Change: Thank you, Renaud. Actually, the performance from underground is getting better and better due to all the work we have done over the last two years and a half. It's proved to be very beneficial for us.

Speaker Change: and our ability to reach our target set.

Speaker Change: 900 tons per day. Of course we have a vision to increase this.

Operator: Congratulations on handing out commercial production. Thank you so much.

Speaker Change: closer to the 1100. Those are the kind of targets we're looking at. Again, with the new 43-101, we'll be able to express with more clarity what those targets are going to be, and also the extent of the life of mine.

Wayne Lam: The next question is from Wayne Lam with RBC. Please go ahead. Yeah. Thanks guys. More than everyone.

Renaud Adams: Just wondering, maybe a coatay if you might be able to speak to the performance of the autonomous operations date on the college and drilling. Where the challenges have been and how you mitigate those risks. I went called too many risks to be mitigated. I think more as a quarter that goes by, we get more comfortable with with autonomous. College and has been operating very well and we're not just mentioned the stockpile and everything that's been processed, so basically every single time they've been put on the stockpile, you know, has been with with autonomous trucks.

Speaker Change: with the new block model. So at that time, we'll be able to give more insight related to that mining plan.

Wayne Lam: Okay, great. Thanks. And then maybe just last one, just on the bamboo gas nets. Can you provide a bit more clarity on the final payment and whether there's any credit risk associated with that? Just seems like it's been a bit delayed, and I'm wondering what the risk is that final payment coming in?

Speaker Change: Okay, great, thanks. And then maybe just last one, just on the Bambook assets, can you provide a bit more clarity on the final payment and whether there's any credit risk associated with that? Just seems like it's been a bit delayed and wondering what the risk is to that final payment coming in.

Renaud Adams: Yeah, I think it's a fair comment that it's been a bit long. And I can assure you, it's been a bit long for us as well. But, but I think we're making great progress, honestly.

Speaker Change: Yeah, it's a fair comment that it's been a bit long.

Speaker Change: And I can assure you it's been a bit long for us as well.

Renaud Adams: So we're still comfortable with the closing of Guinea in the second half. And, and following that, we'll address, you know, the closing in Mali. Can we close both? You know, we're still saying that we still say that they're both. We're working towards closing both remaining Talking about roughly 80 million gross per seat for both. So it's meaningful, it's important. It's important for our people as well, because as you mentioned, we have to move on here and allow everyone to move on. So we're very active and remain confident we're going to close both.

Renaud Adams: And it's been performing extremely well at the very high availability and so forth. So, I honestly do not see any issues with them. And hopefully over time we could be even better with our drilling automation as well, so working hard on both. But Tanya, this is absolutely working beautifully, and not to underestimate as well the health and safety aspect of not having operators behind the steering. It's not about getting job, it's really about improving modernizing operations and making it safer. But so far so good, excellent. I'll give a very high score to the implementation of autonomous college. I will redo it anytime.

Speaker Change: But I think we're making great progress, honestly, so we're still comfortable of the closing of Guinea in the second half, and following that, we'll address the closing in Mali.

Speaker Change: Can we close both, you know? We're still saying that. We're still saying that they're both, we're working towards closing both, remaining, talking about roughly $80 million of gross per seat.

Speaker Change: and for both. So it's meaningful, it's important. It's important for our people as well, because as you mentioned, we gotta move on here and allow everyone to move on. So we're very active and remain confident we're gonna close both this year.

Wayne Lam: Okay, great. Thanks. Thanks for taking my questions.

Speaker Change: Okay, great. Thanks. Thanks for taking my questions.

Mike Parkin: The next question is for Mike Parkin with National Bank Financial. Please go ahead. All right, guys.

Speaker Change: Thank you.

Mike Parkin: Hi guys, congrats on a solid quarter. Most of my questions have been answered. Just a couple follow-ups. You gave us good color on expected shutdowns at Cote. Can you give us any guidance on shutdowns planned at Westwood or Essekam?

Speaker Change: The next question is from Mike Parkin with National Bank Financial. Please go ahead.

Operator: Great sounds like things are going pretty well.

Mike Parkin: Hi guys, congrats on a solid quarter. Most of my questions have been answered. Just a couple follow-ups. You gave us good color on expected shutdowns at Cote. Can you give us any guidance around shutdowns planned at Westwood or Essecant?

Renaud Adams: Maybe moving to Westwood, just on the grade there, which seemed pretty positive relative to the reserve. Do you see those grades continuing through the year? And then with the upcoming technical report, do you see upside to the targeted run rate from the underground beyond 900 tons per day? And given the strong performance of the mine now with the underground now rehabilitated due envision that asset is one to keep in the portfolio longer term, or could it potentially be classified more as non core?

Renaud Adams: Definitely nothing extraordinary beyond the regulars. So you're looking at the average availability of NF-Arkane and Westwood. We achieved 89%, so I think it's fair to think that we're going to try to maintain around that level to the end of the year. And this is basically done through planned shutdowns, a little bit of unplanned, but we don't have anything struggling. And I think the same comment goes for... As well, there's always, of course, things to be addressed, but we're not planning beyond the regular availability. So both mine and yours should be available or better than what you've seen in Q2.

Speaker Change: I've definitely nothing extraordinary beyond the regulars. So you're looking at the average availability of Anisakane and Westwood. We achieved 89% so I think it's fair to think that we're going to try to maintain around that level to the end of the year.

Speaker Change: And this is basically done through planned shutdown, a little bit of unplanned, but we don't have anything extraordinary. And I think the same comment goes for.

Renaud Adams: I'll go in the other. My KPI is in every water. I've seen the asset ramping up with Morton from underground, the overall grade improving from underground. We're sitting on the reserve of roughly 10, 10.4 grams a ton reserve. And that's the ultimate objective. You need to position yourself at some point where you start mining at the reserve grade at Westwood. And this is where you're going to feel that you have reached a certain stability and sustainable.

Speaker Change: As well, there's always, of course, things to be addressed, but we're not planning beyond the regular availability. So both mine should be in the availability or better of what you've seen in Q2.

Renaud Adams: And then the target at Coté to be at 90% of nameplate by year end, is that like, obviously, you put out a daily number just recently, and it's well on it, you know, it's at nameplate, but what's the 90% based on? Is that like a trailing four-week average?

Speaker Change: Okay, and then the target I quotate to be at 90% of nameplate by year-end is that? Like obviously you put out a daily number just recently and that it's well on it, you know, it's at nameplate, but what's the 90% based on? Is that like a trailing four-week average?

Renaud Adams: So pretty close to we could be basically one quarter away of reaching once you get that you want, like I said, you know to to continue to operate along this line. We're extremely extremely pleased to how Westwood has a platform and continue to perform and the cash low. So comfortable to say that at this stage, you know, we're very pleased with both this accounting Westwood and we we definitely can see this two minds continue in the big big collaborator.

Renaud Adams: I'll be very, very happy by accumulating four weeks. Let's say if what we did in commercial using 60% of nine planes, if we repeat that in December, and we feel very strong, this is what we call ending the year. So thanks for asking.

Speaker Change: I'll be very, very happy.

Speaker Change: by accumulating four weeks. Let's say if what we've done in commercial using 60% of nine plane, if we repeat that in December , and we feel very strong, this is what we call exiting the year. So thanks for asking. But internally, this is how we would feel. It's not about a few days. We know we've done it one day.

Mike Parkin: But internally, this is how we would feel. It's not about a few days. We know we've done it one day. We know it's capable of being done. But as you ramp up, you want to make sure that you're solidly on the saddle, you know, and comfortably sitting on the saddle by the end of December. So let's call it 30 days averaging 90% will be our key objective.

Speaker Change: We know it's capable to be done, but as you ramp up, you want to make sure that you're solidly on the saddle, you know, and comfortably sitting on the saddle by the end of December . So let's call 30 days, averaging 90% will be our key objective in December .

Renaud Adams: If you will, you know, to our and contributor to our story. I've been said that I don't think so with seeing the end of the optimization of Westwood. So we're going to put the 42101. We want to see what we could do where we could get. And as I said, you know, strong production profiles and improving and free cash flow. So we're very, very pleased.

Mike Parkin: And great. That's it for me.

Carey MacRury: Great, that's it for me, guys. Thanks. The next question is from Carey MacRury with Canaccord Genuity.

Speaker Change: Great, that's it for me guys.

Carey MacRury: The next question is from Carey MacRury with Canaccord Genuity. Please go ahead. Hi, good morning.

Speaker Change: Thanks.

Speaker Change: The next question is from Carey MacRury with Canaccord Genuity. Please go ahead.

Carey MacRury: Just a follow-up on the mill throughput. Obviously, you've hit commercial production. Should we be assuming that the middle is kind of

Bruno Lemelin: On the total times we see Bruno getting wet a bit here, so what, what do you see down the road? Thank you. Actually, the performance from underground is is getting better, better due to the other work with done over the last two years in the past. It goes to be very beneficial, in our ability to reach our targets at 900 tons per day. Of course, we have vision to increase this closer to the 1100.

Kerry McCrory: Hi, good morning. Just a follow-up on the mill throughput. Obviously you've hit commercial production. Should we be assuming that the mill is kind of going to run at around 60% through August up until the shutdown or is the mill performing a bit better than that now?

Renaud Adams: Yeah, no, definitely from the moment you get the 60%. I would exclude September because, like I said, September is a big month, you know, where we're at and where we're going to be making a lot. But yeah, so 60% has been reached and becomes the baseline now. So from that point on, we need to continue to improve August. September will be the time of fixing, but definitely some kind of steady ramp up with a little bit of a dip in September allowing for the shutdown, but 60% is and will remain the new baseline. Okay, and then, just maybe, a question for Martin.

Speaker Change: Yeah no definitely from the moment you hit the 60% I would exclude September because like I said September is the big month you know where we're

Speaker Change: We're going to be making a lot, but yeah, so 60% has been reached and becomes the baseline now. So from that point on, we need to continue to improve August .

Bruno Lemelin: Those are the kind of targets we're looking at. Again, with the new 43101, we'll be able to express with more clarity what those targets are going to be. And also, the extent of the life of mine with the blue mouth. I'm all so that time we'll be able to give more insight. Ready? So that's my answer.

Operator: Okay, great. Thanks.

Speaker Change: September will be for the time of fixing but definitely some kind of a steady ramp up with with a little bit of a dip in September allowing for the shutdown but but 60% is and will remain the new baseline.

Speaker Change: Okay, and then just maybe a question for Martin on the Sumitomo buyback. I see the option there is I think $380 million. Given the ramp-up, is that more or less where it's going to be, or do you expect that to move around, plus or minus?

Martin Finussen: And then maybe just last one. Just on the bamboo gaffets. Can you provide a bit more clarity on the final payment? And whether there's any credit risk associated with that just seems like it's been a bit delayed and wondering what the risk is to that final payment coming in. Yeah, I it's a fair comment that it's been a bit long and it can assure you it's been a bit long for us as well.

Carey MacRury: Good morning, Kerry. We don't expect that number to change significantly, but it is dependent on the August cost and the August sales because that still gets the July and August costs and Peter thin. Great, that's it for me. The next question is from Steven Green with

Martin: Good morning, Kerry. We don't expect that number to change significantly, but it is dependent on the August cost and the August sales, because that still gets the July and August cost.

Martin Finussen: But but I think we're making great progress, honestly. So we're still comfortable of the closing of unique in the second half. And and following that. Well, well, addressed, you know, the closing and Molly. So can we close both? You know, we're still seeing that was closing that they're both where we're working towards closing both remaining talking about roughly 80 million of gross proceed. And so both so it's it's meaningful. It's important. It's important for for for people as well, because as you mentioned, we've got to move on here and allow everyone to move on. So so we're very active and remain confident. We're going to close both.

Operator: Okay, great. Thanks. Thanks for taking my questions. Okay.

Speaker Change: and sales because that still gets incorporated into that and the gold price has an impact, but we don't expect it to change materially from the $380 million expected previously as well.

Carey MacRury: The next question is from Steven Green with TD Securities. Please go ahead. Yeah, good morning, everyone. Just a quick question.

Kerry McCrory: Great, that's it for me, thanks.

Kerry McCrory: The next question is from Stephen Green with TD Securities. Please go ahead.

Stephen Green: Good morning, everyone. Just a quick accounting question for you. Up until now, you've been capitalizing your interest on Cote. Can we expect that will all start being expensed after the August 2nd date?

Steven Green: Yes, we will start depreciating the asset, and we will stop capitalizing our end costs after achieving commercial production, which we think would be either beginning August or beginning September, but probably beginning August.

Speaker Change: Yes, we will stop depreciating the asset and we will stop capitalizing of our end costs after achieving commercial production, which we, it would be either beginning August or beginning September , but probably beginning August .

Mike Parkin: The next question is from Mike Parkin with National Bank Financial. Please go ahead.

Renaud Adams: Hi guys, I'm Grant from the solid quarter. Most of my questions have been answered. Just a couple of follow ups. You give us good color on expected shutdowns at Kote. Can you give us any guidance around shutdowns planned at Westwood or us again? I'm definitely nothing extraordinary beyond the regular. So you're looking at the average availability of any second and Westwood. We achieve a nine percent. So I think it's fair to think that we're going to try to maintain around that level to the end of the year.

Speaker Change: Okay, great. That's all I had.

Marthinus Theunissen: Once again, if you have a question, please press star then one. The next question is from Tanya Jakusconek with Scotiabank. Please go ahead.

Speaker Change: Once again if you have a question please press star then 1. The next question is from Tanya Jakusconek with Scotiabank. Please go ahead.

Operator: Great, good morning. Thank you very much for taking my questions and congrats on getting Kote Commercial. I just wanted to come back. I know a lot of questions have been asked. I needed it quite a bit when I started off on Kote. Can I just go back to starting on the pitch? You said the grade meets the block model. Just remind me right now of the availability of your truck; what are they operating at availability wise?

Tanya Jakusconek: Great, good morning. Thank you very much for taking my questions and congrats on getting COTE commercial. I just wanted to come back. I know a lot of questions have been asked and needed it quite a bit.

Tanya Jakusconek: you know starting off on code take. Can I just go back to starting on the, just on the pitch you said the grade meets the block model, just remind me on right now on the availability of your trucks, what are they operating at availability wise?

Renaud Adams: And this is basically done through plan shutdown, a little bit of on plan, but we don't have anything struggling. And I think the same comments and goes for for a second as well. There's always, of course, things to be addressed that we we're not planning beyond the regular availability. So so both mine should be in the availability or better of what you've seen in Q2. Okay. And then the target at Kote to be at 90% of name plate by year end is that like obviously you put out a daily number just recently and it's well, you know, it's at name plate, but what's the 90% based on is that like a trailing four week average.

Tanya Jakusconek: We're definitely on the, in the, in the stack. So 85%. You know, just confirm 85% or so, so this is how you want to see a new state behavior.

Speaker Change #100: We're definitely in the stack, so 85%.

Speaker Change #100: You know, just confirm 85% or so. So this is how you want to see a new safe behavior

Renaud Adams: Okay, and then can I ask, just looking at, so going back to the processing facility, oh, sorry, before the processing facility, just the stockpiles, you gave us the 8 million tons for the.75, can you just give me what the stockpile tonnage is for the 1.6 grams per ton? Because I know that's what you're going to be feeding in the short term to the processing facility. What do we have in 1.6 grams per ton?

Speaker Change #100: Okay.

Speaker Change #101: And then can I ask, just looking at, so going back to the processing facility, oh sorry, before the processing facility, just the stockpile.

Speaker Change #102: You gave us the 8 million tons for the 0.75. Can you just give me what the stockpile tonnage is for the 1.6 grams per ton? Because I know that's what you're going to be feeding in the short term to the processing facility. So what do we have in 1.6 grams per ton?

Renaud Adams: I'll be very, very happy by accumulating four weeks. Let's see if what we've done in commercial using 60% of nine plane, if we repeat that in December and we feel very strong, this is what we call exhibiting the year. So, thanks for asking, but internally this is how we would feel. It's not about a few days, we know we've done it one day, we know it's capable to be done, but as you ramp up, you want to make sure that you're solidly on the saddle, you know, and comfortably sitting on the saddle by the end of December. So, let's call 30 days of raging 90% will be our key objective in December.

Renaud Adams: Hello Tanya, we're talking about half a million times right now, and we have packets right in front of us in the pit.

Operator: Great, that's it for me. Thanks.

Tania: Hello Tanya, we're talking about half a million thumbs right now.

Renaud Adams: We used a bit of a stockpile, of course, during the ramp up and the mine was getting, you know, new spacing prepared and so forth. So we've entered now much like good grade and long and Continuous benching. So we're expecting pretty good grades.

Speaker Change #104: And we have packets in front of us directly in the pit.

Speaker Change #105: Yeah, we use a bit of stockpile, of course, during the ramp up and the mine was getting, you know, new facing prepared and so forth. So we've entered, we've entered now much like good grade and long and

Speaker Change #105: Continuous benching, so expecting pretty good grades until the end of the year.

Renaud Adams: end of the year. Yeah, that's, and you mentioned the 1.4. Okay, perfect. And then, yeah, we did 1.4. Sorry, Tanya, just to clarify. So we did 1.4 in Q2. But, but now that we're, we're, primed, if you will, so we'll like to maintain more towards a 1.5 at the end of the year. Okay, so you are going to take a bit more of that higher grade soft file through as well. No.

Speaker Change #105: End of the year. Yes, that's when you mentioned the 1.4.

Speaker Change #106: Okay, perfect. And then, yeah, we did 1.4. Sorry, Tanya, just to clarify. So we did 1.4 in Q2, but now that we're primed, if you will, so we'll like to maintain more towards a 1.5 in the end of these.

Carrie McCruery: Next question is from Carrie McCruery with Canacorn Genuity. Please go ahead. Good morning, just a follow-up on the mill throughput, obviously hit commercial production. Should we be assuming that the mill is kind of going to run it around 60% through August, up until the shutdown or is the mill performing a bit better than that now? Yeah, no, different at least from the moment, you hit the 60%. I would exclude September, because like I said, September is the big month, you know, where we're going to be making a lot, but yes, so 60% has been reached and becomes the baseline now.

Renaud Adams: No, we just, well, maybe, maybe, but also, the vine will be producing more until the end of the year. I agree.

Speaker Change #107: Okay, so you are going to take a bit more of that higher grade soft power through as well. No, we just, well, maybe, maybe, but also the mind will be producing more until the end of the year of that. I agree.

Renaud Adams: Okay, that's helpful. And then as we get into the processing facility, and we're down for that 10 to 15 days, just wanted to make sure like, you know, you're, you're attacking the liners, the screen, do we have all of this inventory on site right now? Are we still having to purchase or have this come in?

Speaker Change #108: Okay, that's helpful. And then as we get into the processing facility and we're down for that 10 to 15 days...

Speaker Change #109: Just wanted to make sure, like, you know, you're tacking the liners, the screens. Do we have all of this inventory on site right now, or are we still having to purchase or have this come to site?

Carrie McCruery: So, from that point on, we need to continue to improve August. September will be for the time of fixing, but definitely it's some kind of steady ramp up with a little bit of a different September allowing for the shutdown, but 60% he is and will remain the new baseline. Okay, and then just maybe a question from Martin and the Sumitomo by that. I see the option there. I think 380 million. Given the ramp up, is that more or less where it's going to be or is that do you expect that to move around plus or minus?

Renaud Adams: A lot of that already, Tanya. Some will come later in August. The latest will be kind of very early September. So we know we feel that we're going to be fully equipped to address all those issues. So we're not expecting any issues with that.

Speaker Change #110: A lot of it already, Tanya. Some will come later on in August . The latest will be kind of very early September .

Speaker Change #111: So, we feel that we're going to be fully equipped to address all those issues, so we're not expecting any issues on the trail.

Tanya Jakusconek: Okay, and then just on the dust that you talked about, was that just some, you know, a lot of dust that you're, you know, having to fight against the permit? Or what was it about the dust in general that you needed to, you know, I understand you need to control dust, but I'm just wondering if it was a permit or if it was just a normal operating dust issue.

Speaker Change #111: Okay, and then just on the dust that you talked about, was that just some...

Speaker Change #112: A lot of dust that you're having to fight against the permit, or what was it about the dust?

Carrie McCruery: Good morning, Kiri. We don't expect that number to change significantly, but it is dependent on the August cost and the August sales because that still gets digital July and August cost and sales because that still gets incorporated into that and the gold price has an impact, but we don't expect it to change materially from the 300 million expected previously as well.

Speaker Change #113: In general that you needed to, you know, I understand you need to control that, but I'm just wondering if it was a permit, or if it was just a normal operating.

Renaud Adams: I would say more operating things. I mean, like, the objective is very clear. You visited a lot of assets and know what it is.

Speaker Change #114: I would say more operating things, I mean like the objective is very clear, you visited a lot of assets, you know what it is, and the screening building and the crushing building . . . . . . . . . . . . .

Renaud Adams: And in the screening building and the crushing building, using a mask should be a second layer of protection and not the main layer. So that's the bar. It's like our commitment to health and safety. Rules are very strict as well, of course, in Ontario, as they should be.

Speaker Change #115: should be a second layer of protections and not the main

Martin Finussen: Great pleasure for me, thanks.

Martin Finussen: The next question is from Stephen Green with TD Securities. Please go ahead. Yeah, good morning, everyone. Just a quick counting question for you. Up until now, you've been capitalizing your interest on Cote. Can we expect that will all start being expense after the August second date?

Renaud Adams: So we're going to bring this to basically the zero, the zero dos, fugitive and dos, and so forth. So So We were not there at the beginning, of course, a lot of adjustment, but as we advance in August, we have some sectors now that really look like zerodot.

Speaker Change #115: Our commitment to health and safety, rules are very strict as well, of course, in Ontario, as it should be, so we're going to bring this to basically the zero, the zero DOS.

Martin Finussen: Yes, we will start off depreciating the asset and we will stop capitalizing of our end cost after achieving commercial production, which we would be out there beginning August or beginning September, but probably beginning August. Okay, great.

Speaker Change #116: We were not there at the beginning, of course, a lot of adjustment, but as we advanced in August , we have some sectors now that really look like

Operator: That's all I had. Once again, if you have a question, please press star then one.

Renaud Adams: So this is basically what we have to do. So most likely, we're just going to extend the suppression system to every single critical area. We're working with the manufacturer as well to make the DOS collecting system more efficient as well, more, and some optimization. So the combination of both, we're very, very confident that will solve the problem once we're good in August or September. Okay.

Speaker Change #116: So this is basically what has to do. So most likely we're just going to extend to every single critical area the suppression system.

Speaker Change #116: We're working with the manufacturer as well to make the DOS collecting system more efficient as well, and some optimization. So the combinations of both, we're very, very confident that we'll solve the problem once for good in September .

Tanya Jakusconek: Okay, just on the processing cost that was quoted, the $10 to $15 a ton, I just want to make sure that's USD.

Tanya Jakusconek: The next question is from Tanya Jakusconek with Scotiabank, please go ahead. Great good morning.

Speaker Change #117: Okay, and just on the processing costs that was quoted, the $10 to $15 a ton, I just want to make sure that's USD.

Renaud Adams: Thank you very much for taking my questions and congrats on getting co-tape commercial. I just wanted to come back and know a lot of questions have been asked and needed it quite a bit on starting off on co-tape. Can I just go back to starting on the just on the pitch, you said the grade meets the block model. Just remind me right now on the availability of your trust, what are they operating availability wise?

Renaud Adams: And then thank you for that, all my questions on, and congrats on getting this up. It looks like it's coming along nicely. Can I just move to my final question, which is just on the guidance for the remaining portion of the year for the company as a whole. We do have the lower grades coming in at ESSECAN. Is that coming in like, slowly IE Q3 is lower than Q2 and then a lower Q4 or are we already in the low grade and it's sort of even between the two quarters.

Speaker Change #117: Yeah.

Speaker Change #118: and then thank you for that all my questions on and congrats on getting this up it looks like it's coming along nicely

Speaker Change #119: Can I just move to my final question, which is just on the guidance for the remaining portion of the year for the company as a whole. We do have the lower grades coming in at ESSECAN, is that coming in like

Renaud Adams: We're definitely in the spec, so 85% just confirm 85% or so. This is how you want to see a new situation. Okay, and then can I ask just looking at, so going back to the processing facility, sorry, before the processing facility, just a stock pile, you gave us the 8 million tons for the .75. Can you just give me the stock pile tonnages for the 1.6 grams per ton, because I know that's what you're going to be feeding in the short term to the processing facility.

Speaker Change #119: you know slowly ie q3 is lower than q2 and then a lower q4 or are we already in the in the low grade and it's sort of even in the two quarters

Renaud Adams: Yeah, the first part of July was somewhat like a transition and remained good. And I think, you know, from there, as we enter August, like slowly, we see this ramping down, but it wasn't like a dry cut at the end of Q2. So, we had a good July.

Speaker Change #120: Yeah, the first part, like July was somewhat like a transition and remained good.

Speaker Change #121: And I think, you know, from there, like, as we enter August , like, slowly, we see this ramping down, but it has, it wasn't like a dry cut at the end of Q2. So, so we had a good July and we continue and now we're transitioning slowly. So.

Renaud Adams: So what do we have in 1.6 grams per ton? We're talking about customer funds right now, and we have pockets in front of us directly in the pit. Yeah, we use a bit of stock pile, of course, ring the ramp up, and the mind was getting in on you, facing prepare and so forth. So we've entered, we've entered now much like good grades and long and continuous benching, so expecting pretty good grades.

Speaker Change #121: And on that, I know when you're looking at the guidance, as I mentioned, you know, it looks like we're

Renaud Adams: And we continue now to be transitioning slowly. So, and on that, I know when you're looking at the guidance, as I mentioned, it looks like we're performing better this year to date. And how we look at it, as well, as we set the guidance, there is some sort of risk-adjusted effect as well there. So we all understand the situations, and it would take only a month of interruptions of supply or LFO being used for power.

Speaker Change #121: performing better the year to date and and and how we look at Ithaca County as well as we set the guidance there is some sort of

Speaker Change #122: Marthinus Theunissen, Jerzy Orzechowski, Marthinus Theunissen, Graeme Jennings

Renaud Adams: So, there's a bit of a risk adjustment. And just like happened in the first half, if the second half is very stable, you have no disruptions, and the mine operates according to its plan, there is no reason to believe that we will not perform extremely well under those new updated guidance.

Renaud Adams: So the end of the year. Yeah, trust, and you mentioned the 1.4. Okay, perfect. And then we did 1.4, sorry, and then just to clarify, so we did 1.4 and Q2, but now that we're primed, if you will, so we'll like to maintain more to always a 1.5 in the end of the year. Okay, so you are going to take a bit more of that higher grade stock pile through as well.

Speaker Change #123: If the second half is very stable, you have no disruptions and the mine operates according to his plan, there is no reason to believe that we will not perform extremely well under those new updated guidance.

Renaud Adams: Okay, so looks like Q3 a bit lower and then Q4 will be the lowest. And then for Westwood, with the revised numbers, are we still looking at quarter over quarter improvement in Q3 over and then better improvement in Q4?

Speaker Change #124: Okay, so looks like Q3 a bit lower and then Q4 will be the lowest. And then for Westwood with the revised numbers, are we still looking at quarter over quarter improvement Q3 and then better improvement in Q4?

Renaud Adams: Yeah, but yeah, but as I mentioned, you know, we're almost now at reserve grade, right? So, there would be a point where you don't want to over-mind this.

Renaud Adams: No, we just, well, maybe here's maybe, but also the mind will be producing until the end of the year of that higher grade. Okay, that's helpful. And then as we get into the processing facility and we're down for that 10 to 15 days, just wanted to make sure like, you know, you're, you're, you're attacking the liners, the screens. Do we have all of this inventory on site right now, or are we still having to purchase or have this come to site?

Speaker Change #125: On the great side. Yeah, but yeah, but as I mentioned, you know, we're almost now already at reserve grade, right? So, so there would be a point where you don't want to over, you know.

Renaud Adams: So, you're going to be following along, so if everything goes as well, while Fayol is over, so there are about 10,000 ounces of the first half of the year that came from Fayol. So this one is so we had a very good, very good grade in the Gramsic as well in kind of the second half of H1. So that's also so, so all those elements will maybe not be there in a second.

Speaker Change #125: mind this so so you're going to be following so we're almost there so if if everything goes as well while Fayol is over so there's about 10,000 ounces of the first half of the year that came from Fayol so this one is so we had a very good

Renaud Adams: A lot of this already, Tanya, the some will come later on in August. Some, some, the latest will be kind of very early September. So we, no, we feel that we're going to be fully equipped to address all those issues. So we're not expecting any issues on the trail. Okay, and then just on the dust that you talked about, was that just some, you know, a lot of dust that you're, you know, having to fight against the permits, or what was it about the dust in general that you needed to, you know, I understand you need to control dust, but I'm just wondering if it was a permit, or if it was just a normal operating dust issue?

Speaker Change #126: A very good grade in the Gramsic as well in kind of the second half of page one.

Renaud Adams: So when you're looking at I think the underground will continue to improve, but you may lose a bit of grade towards the Gramsic, and you won't benefit from the answers from Fayol. So could we repeat H1 and H2? A little more challenging, but if the mind continues to ramp up well on the ground, we could be well positioned as well under this new guidance. Okay.

Speaker Change #126: So that's also so so all those elements will maybe not be there in a second So when you're looking at I think the underground will continue to improve

Speaker Change #126: But you may lose a bit of grade towards the Grand Zirk and you won't benefit the answers from FAO, so...

Speaker Change #126: Could we repeat H1 and H2? A little more challenging, but if the mine continues to ramp up well on the ground, we could be well positioned as well under this new guidance.

Tanya Jakusconek: Okay, it kind of looks like you're almost there on grade, so mainly evenly distributed for the second half. Thank you so much for taking all my questions. I really appreciate it, and congrats again.

Speaker Change #127: Okay, it kind of looks like you know, you're almost there on grade so mainly evenly distributed for the second half

Renaud Adams: I would say more operating things. I mean, like the objective is very clear. You visited a lot of assets and know what it is. And in the screening building and the crushing building, using a mask should be a second layer of connections and not the main layer. So that's, that's the bar. It's like our commitment to help and safety. The rules are very strict as well. Of course, in Ontario, as it should be.

Speaker Change #128: Thank you so much for taking all my questions. I really appreciate it and congrats again.

Graeme Jennings: This concludes the time allocated for questions on today's call. I'd now like to hand the call back over to Graeme Jennings for closing remarks.

Speaker Change #129: Thank you so much.

Speaker Change #129: This concludes the time allocated for questions on today's call. I'd now like to hand the call back over to Graeme Jennings for closing remarks.

Graeme Jennings: Thank you very much, operator. Thanks to everyone for joining us this morning. As always, should you have any additional questions, please reach out to Renaud or myself. Thank you all, be safe, and have a great day.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Graeme Jennings: Thank you very much, operator. Thanks to everyone for joining us this morning. As always, should you have any additional questions, please reach out to Renaud or myself. Thank you all. Be safe and have a great day.

Renaud Adams: So we're going to bring this to basically the zero, the zero dose of fugitive and dust and so forth. So, so we were not there at the beginning of course, a lot of adjustment but, but has we events in August that we have some sectors now that really looks like zero dust. So, so this is basically what has to do. So most likely we're just going to extend to every single critical area, the suppression system.

Speaker Change #130: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Renaud Adams: We're working with a manufacturer as well to make the doc collecting system and more efficient as well, more and some optimization. So the combinations of both we're very, very confident that we'll solve the problem once we're good enough in September.

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Renaud Adams: Okay. And just on on the processing cost that was quoted the 10 to $15 a ton. I just want to make sure that's USC. Yes. And then thank you for that. All my questions on and congrats on getting this up. It looks like it's coming along nicely.

Tanya Jakusconek: Can I just move to my final question, which is just on the guidance for the remaining portion of the year for the company as a whole. We do have the lower grades coming in at S the can. Is that coming in like, you know, slowly IEQ3 is lower than Q2 and then a lower Q4. Or are we already in the in the low grade and it's sort of even in the two quarters.

Speaker Change #130: ?? ?? ?? ?? ??

Tanya Jakusconek: Yeah, that the first part like July was somewhat like a generations and remain good. And I think, you know, from there, like as we enter August, like slowly, we see this ramping down, but it has it wasn't like a dry cut at the end of Q2. So so we had a good July and we continue in our transitioning slowly. So and and on that, I know when you're looking at the guidance.

Tanya Jakusconek: As I mentioned, you know, looks like we're performing better the year today. And and how we look at it as a county as well as we said the guidance. There is some sort of a risk adjusted effect as well there. So we all understand the situations. And any would take only a month of interruptions of supply or LFO venues for power. So so there's a bit of a risk adjustment and just like happened in the first half.

Speaker Change #130: www.TheBusinessProfessor.com www.TheBusinessProfessor.com

Tanya Jakusconek: If the second half is very stable, you have no disruptions and the mine operates according to his plan. There's no reason to believe that we will not perform extremely well under those new updated. Okay, so looks like Q3 a bit lower and then Q4 will be the lowest. And then four westwards with the revised numbers are we still looking at quarter over quarter improvement, Q3 over and then better improvement in Q4 on the great side.

Tanya Jakusconek: Yeah, but yeah, but as I mentioned, you know, we're almost no already at the reserve grade, right? So, so there would be a point where you don't want to over you know,[inaudible] be there in a second. So, when you're looking at, I think the underground will continue to improve, but you may lose a bit of grade towards the grumsic and you won't benefit the answers from from fail. So, could we repeat H1 and H2?

Tanya Jakusconek: A little more challenging, but if the mine continues to ramp up well on the ground, we could be a well position as well under this, the new guidance. Okay, it kind of looks like, you know, you're almost down. Great. So, mainly evenly distributed for the second half. Yes. Okay. Thank you so much for taking all my questions. I really appreciate it and congrats again. Thank you so much.

Operator: This concludes the time allocated for questions on today's call.

Graeme Jennings: I'd now like to hand the call back over to Graham Jennings for closing remarks. Thank you very much, operator. Thanks to everyone for joining us this morning. As always, should you have any additional questions, please reach out to Renewal or myself. Thank you all. Be safe and have a great day.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Marthinus Theunissen: Theunissen, Marthinus Theunissen, Lawson Winder Theunissen, Marthinus Theunissen, Lawson Winder,