Q2 2024 First Majestic Silver Corp Operating Results Call

July 18, 2024

Speaker Change: [music].

Operator: Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver second quarter production results and H2 2024 guidance conference call.

Thank you for standing by this is the conference operator welcome to the first Majestic silver second quarter production results and H, two 2024 guidance conference call.

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 a star than one on your telephone keypad. If you're participating through the webcast, you can submit a question and writing using the form in the lower section of the webcast frame. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Mr. Keith Neumeyer, President and Chief Executive Officer of First Majestic. Keith, please go ahead.

Speaker Change: A reminder, all participants are in listen only mode and the conference is being recorded.

Speaker Change: The presentation there'll be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad.

Speaker Change: If you are participating through the webcast you can submit a question in writing you using that form in the lower section of the webcast screen.

Speaker Change: Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Keith N. Neumeyer: I'd now like to turn the conference over to Mr. Keith Neumeyer, President and Chief Executive Officer of first Majestic Keith. Please go ahead.

Keith N. Neumeyer: Thank you, operator, and welcome everyone to our mid-year conference call, which we do every July. I'm surrounded by a number of our key staff today here in Vancouver. I just want to quickly go through the names of each individual.

Keith N. Neumeyer: Thank you operator, and welcome everyone to our mid year conference call, which we do every July.

Keith N. Neumeyer: We have Sameer Patel, who's our General Counsel and Corporate Secretary. We also have Davis Flores, our CFO, Chief Financial Officer. We also have Manny Alcavaje, VP of Corporate Development and Investor Relations. We also have James Dixon, Director of Finance, Del Rey, Investor Relations Manager, Joel Valtinsky, Investor Relations Analyst, and Mark Ruthers, Manager of Private Client Services, Corporate Development. And online, we're happy to have Steve Holmes who's dialed in from afar. He's actually at our San Dimas mine in Mexico, joining us today. Before I get into the call, I'm just going to transfer over to Sameer. Go ahead, Sameer. Thank you.

I am surrounded by a number of our key staff today here in Vancouver, I just wanted to quickly go through that.

Speaker Change: The names of each individual.

Speaker Change: Amir Patel, who is our general counsel corporate Secretary, David Soares, Our CFO Chief Financial Officer. We also have many all capacity EVP corporate development and Investor Relations malls have James Dixon Director Finance Delray Investor Relations manager, Joel called Pink Ski Investor Relations analyst.

Speaker Change: Mark Brothers manager private client services corporate development online, where we're happy to have Steve Holmes Who's dialed in from far he's actually with our San Demus mine in Mexico.

Speaker Change: Joining us today.

Speaker Change: Before I get into the call I was just going to transfer over to Samir.

Speaker Change: Oh go ahead Sir.

Sameer Patel: Before we begin today's call, I would like to remind you that we will be referring to certain non-IFRS measures and making certain statements regarding First Majestic Silver and its operations that constitute forward-looking statements in accordance with applicable Canadian and U.S. securities laws. All statements that are not historical facts, such as statements regarding future estimates and plans or expectations of future performance, constitute forward-looking statements that reflect the company's current views with respect to future events.

Speaker Change: Thanks, Keith before we begin today's call I would like to remind you that we will be referring to certain non <unk> measures make some statements regarding first majestic silver and its operations constitute forward looking statements in accordance with the applicable Canadian and U S Securities laws.

Speaker Change: All statements that are not historical facts, such as statements regarding future estimates plans.

Speaker Change: Patients of future performance constitute forward looking statements that reflect the company's current views with respect to future events.

Sameer Patel: These statements are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies. We encourage you to refer to the cautionary language included in our news release that was disseminated earlier this morning, and the disclosure on non-IFRS measures in our most recently filed management discussion and analysis, as well as the risk factors set out in our most recently filed annual information. As a reminder, these documents, along with all of our continuous disclosure documents, are available on CEDAW Plus and on EDGAR. Thank you, Samir.

Speaker Change: These statements are necessarily based upon a number of assumptions and estimates that while considered reasonable by the company are inherently subject to significant business economic competitive political and social uncertainties and contingencies.

Speaker Change: We encourage you to refer to the coffee language included in our news release that was disseminated earlier this morning.

Speaker Change: Closure on non <unk> measures and our most recently filed management's discussion and analysis.

Speaker Change: What is the risk factors set out in our most recently filed annual information form.

Speaker Change: As a reminder, these documents along with all of our continuous disclosure documents.

Speaker Change: <unk> plus.

Speaker Change: Investors are cautioned against there should be saying undue certainty or reliance on any forward looking statements made during today's call and the company does not intend to assume any obligation to update these forward looking statements or information other than as required by law with that I'll turn the call back to Keith.

Keith N. Neumeyer: Thank you, Samir. I'm sure everyone online has seen our news release that was put out early this morning. Just as a headline, we produced 5.3 million silver-coal ounces, of which 2.1 was silver and just under 40,000 ounces of gold. We also updated our guidance for the balance of the year. Some highlights that you may not have noticed. Due to increased metal prices, we've decided to increase our CAFX slightly by 9%. We've increased our development expenses by 11%, primarily at San Dimas by adding three kilometers of additional development.

Keith: Thank you Samir I'm sure everyone online has seen our news release that was put out earlier. This morning, Todd just as a headline we produced $5 3 million silver equivalent ounces of which $2 one of the silver ads.

And <unk>, just under 40000 ounces of gold and we also updated our guidance for the balance of the year. Some highlights that you may have noticed two due to the increased metal prices, we have decided to increase our capex slightly <unk>, 9%.

Speaker Change: Increased our development expenses by 11% primarily outside the U S by adding three kilometers of additional development.

Keith N. Neumeyer: We've also increased our exploration as well, primarily at San Dimas by going from 95,000 meters there to 115,000 meters. A nice increase in exploration at San Dimas. We've also just started on the exploration front at Cherry Canyon this week. We've got three rigs being deployed, which was in our original forecast anyways, but I just wanted to add that for people that wanted to have questions regarding Cherry Canyon.

Speaker Change: <unk> also increased our exploration as well primarily in the U S by <unk>.

Speaker Change: I am from 95000 meters. There 215000 meters nice increase in exploration has had the most volatile just started on the exploration front.

Terry carrying in this week.

Speaker Change: Three rigs being deployed that which was in our original forecast anyway. So I just wanted to add that for people that wanted to ask a question to Brian.

Keith N. Neumeyer: Our production and our guidance, our gold, pardon me, silver is up by 1%. Gold is down a little bit, really due to grade. We've reduced our gold guidance by 3%. Most of San Dimas is related.

Canyon: Canyon, our production in our guidance.

Speaker Change: Gold price.

Speaker Change: Apartment silver is up about 1% hold us down a little bit rate to the grade that we produced our gold guidance by 3%, mostly San Demus related.

Speaker Change: If you look at age two only because we did put out the consolidated guidance, you'll see an improvement in silver production of 26%.

Keith N. Neumeyer: If you look at H2 only, because we did put out the consolidated guidance, you'll see an improvement in silver production of 26% and an improvement in gold production of 7%. So H2 is looking to be quite a robust half of the year compared to H1. We have a 38% increase in silver production in La Quintana, and we're expecting a 26% increase in silver equivalent production at San Dimas, and that's going to be very heavily weighted in Q4.

Speaker Change: An improvement in gold production of 7%.

Speaker Change: So as to who is looking to be quite a robust.

Speaker Change: Half of the year compared to each one Lincoln Patty Yeah, we have a 38% increase in silver production with the cantata and we're expecting a 26% increase in silver equivalent production at Sentinel.

Speaker Change: And that's going to be very heavily weighted in Q2.

Keith N. Neumeyer: There is a slight increase in costs on a consolidated basis, about 3% cash costs and 4% all sustaining costs, but if you isolate out H2 on its own, you'll see a drop in costs in La Quintana by 16%, which is obviously nice to see.

Speaker Change: Q4.

Speaker Change: There is a slight increase in costs on a consolidated basis.

Speaker Change: 3% cash costs and 4% all in sustaining costs, but if you isolate out east to on its own you'll see a drop in.

Speaker Change: Cost of Lincoln's Hatter by 16%, which is obviously nice to see Ah we were affected by the peso. We did guide in our January guidance of $18. Two five to one D. C. U S dollar are for the peso.

Keith N. Neumeyer: We were affected by the peso. We did guide in our January guidance 18.25 to 1 against the U.S. dollar for the peso. The peso averaged 17.09 for H1, which is much stronger than what we anticipated, and that did affect us by over $10 million for H1. We're hoping to see the peso weaken in H2 once the new government takes over, but we are obviously uncertain. We continually guide the peso at 18.25. That's really it for my notes. So if we could open the call up to questions, we'll be happy to answer any questions that may come in.

Speaker Change: The peso averaged 17.094, H, one which was much stronger than what we anticipated and that did affect us by over $10 million.

Speaker Change: For H, one we're hoping to see the peso a weekend in H two once the new government takes over and.

Speaker Change: We are we all obviously is uncertain we continually guide.

Speaker Change: The pace of 18.25.

Speaker Change: And.

Speaker Change: That's really it for my notes.

Operator: So if we head to meet it open on the call after questions, we'll be happy to answer any questions that may come in.

Speaker Change: So we can open the call up to questions we're happy to.

Speaker Change: Turning to questions that may come in.

Keith Neumeyer: Thank you, Keith.

Keith: Thank you Keith.

Operator: We will now begin the question and answer session. Once again, to join the question queue, you may press star and then one 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 key to withdraw your question; please press star then to. If you're participating today through the webcast, you can submit your question in writing by using the form in the lower section of the webcast frame. The first question is from Don DeMarco with National Bank Financial. Please go ahead.

Operator: We will now begin the question and answer session. Once again, to join the question cute, 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 hands before pressing any keys.

I will begin the question and answer his question once again to join the question queue. You May Press Star then one on your telephone keypad, well hear tone acknowledging your request.

Keith: If you're using a speakerphone please pick up your handset before pressing any key.

Operator: Do withdraw your question. Please press star, then two.

Keith: Your question. Please press Star then two.

Operator: If you're participating today through the webcast, you can submit your question writing by using the form in the lower section of the webcast frame.

Speaker Change: Thank you for participating today and through the webcast chicken Sidney your question, writing well use in this forum and then Louis section at the webcast frame.

Don Demarco: First question, it's from down to Marco with National Bank Financial. Please go ahead. Thank you for taking my call, operator.

Speaker Change: Our first question is from Don Demarco with National Bank Financial. Please go ahead.

Don DeMarco: Thank you for taking my call, operator. Good morning, Keith and team. Hey, really strong performance out of Santa Elena. Great to see that continue in the second half. Looking at good grades and throughput, but can you comment on the recoveries? I know you had the HIGS system installed there. Any read through to kind of... get the recoveries trending back up again to contribute a little bit more?

Don DeMarco: Thank you for taking my call operator, good morning, Keith.

Keith Neumeyer: Good morning, Keith. It's a really strong performance out of central, and a great to see that continue in the second half. Looking at good grades and throughput, but can you comment on the recovery? I know you had to fix this and resolve there.

Speaker Change: Hey, Yeah really strong performance out of Santa Elena Great to see that continue in the second half looking at good grades and throughput, but can you comment on the recoveries I know you had to take.

Speaker Change: So if there are any.

Keith Neumeyer: Any read-through to kind of get the recovery trending backed up again to contribute a little bit more.

Speaker Change: Read through to kind of.

Speaker Change: Get the recoveries trending back up again to contribute a little bit more.

Keith N. Neumeyer: Well, thanks, Don, and glad you were able to join us today. The recoveries you're probably referring to are related to the silver discoveries, I'm assuming. Gold recoveries have been, you know, quite stable. But the ermitannial ore, the silver, is not as recoverable as the Santelena ore, so you're probably used to seeing silver recoveries at Santelena in the low 90s. And because of the ermitannial ore, it's very heavy gold, and then some somewhat lower-grade silver, the recoveries are just simply lower on the silver. But, you know, the grade there is, you know, there's a lot of gold coming out of that area. I'm not sure if that answers your question.

Speaker Change: Well, thanks, Don and I are glad you're able to join us today.

Keith Neumeyer: Well, thanks on, and I'm glad you're able to join us today. The recovery is, you're probably referring to our related to the sober recovery, I'm assuming. Gold recovery has been, you know, quite stable.

Speaker Change: There were there recoveries.

Speaker Change: Youre, probably referring to are related to the silver recovery I'm assuming.

Speaker Change: Gold recoveries have been so.

Don: Quite stable.

Keith Neumeyer: But theermitanial or is, is, is, is, is silver is not as recoverable as a sentiment or so you're probably used to seeing this sober recovery is a sentiment in the lower 90s. Because, you know, retain your wars very heavy goals and then and some of some of the war rates silver. The recovery is reduced simply lower on the silver, but, you know, the great there is, you know, you know, it is it's a lot of old coming out of that area. I'm not sure if that answers your question.

Speaker Change: The army tangle or is the silver is not as carnival as the Santa Ana or so you're probably used to seeing.

Speaker Change: Silver recoveries at Santana in the low nineties.

Speaker Change: Because of the Hurricane yours, very heavy cold and then some war rage silver.

Speaker Change: The recoveries are just simply lower on the silver, but the grade there as well.

Speaker Change: It is a lot of goals coming out of that area I'm not sure if that answers your question.

Don DeMarco: Yeah, that answers my question. That's good to hear. Yeah, looking at the silver in particular, although it is fairly gold weighted. And so looking at San Dimas, I mean, if you get San Dimas lined up, then you kind of have all three assets firing together. Looks like grades have been trending a little bit lower. Can you tell us, can you give a little bit more color on the outlook?

Speaker Change: Yes that answers my question that's good to hear.

Don Demarco: Yeah, that's that's good to hear. Looking at the silver particular, although it is fairly gold weighted.

Speaker Change: Yeah looking at the silver in particular, although it is fairly cold weighted.

Don Demarco: And so looking at San Gimas, I mean, if you get San Gimas lined up, then you kind of have this all three assets firing together. Looks like grades have been trending a little bit lower. Can you tell us, can you give a little bit more color on the outlook or some of the challenges behind the lower grades?

Speaker Change: And so looking at San Dimas I mean, if he gets Andina signed up then you've got to have all three assets firing together.

Speaker Change: It looks like grades it then.

Speaker Change: Trending a little bit lower.

Speaker Change: Can you tell us if you can give a little bit more color on.

Speaker Change: The outlook or are some of the challenges behind the lower grade.

Keith N. Neumeyer: Well, it's a transition; San Dimas is going through a transition right now. We're going to the primary production was really from the vein called Jessica. And that's you know, we're dealing with Mother Nature, of course. Right. So you know, Jessica was a very robust, very large structure.

Keith Neumeyer: Well, that's a transition.

Speaker Change: Well I should transition Sandy Emmis is going through a transition right now are going.

Keith Neumeyer: I said, Dimas is going through a transition right now. We're going to be the primary production was really from the vein called Jessica. And that's, you know, we're dealing with Mother Nature, of course, right? So, you know, Jessica was a very robust, very large structure. It's been our primary feed for the mill for five years. And that vein is now coming to end of its life. And we're moving into a variety of other veins. Exploration is going extremely well. As you know, by our previous announcement about a month ago, I said, Dimas. But you were not projecting higher grades at San Gimas, at least for another couple of quarters.

Speaker Change: Primary production was really from the vein called Jessica.

Speaker Change: And that's you know we're dealing with mother nature of course rate. So you're you know Jessica was a very robust very large structure.

Keith N. Neumeyer: It's been our primary feed for the mill for five years, and that vein is now coming to the end of its life. And we're moving into a variety of other veins. Exploration is going extremely well, as you know, from our previous announcement about a month ago at San Dimas. But we're not projecting higher grades at San Dimas for at least another couple of quarters. So, you know, look for, you know, similar grades that you've seen this quarter.

Speaker Change: And our primary feed for the mill for five years and that that pain is now coming to end of its life, our moving into a variety of other veins.

Speaker Change: Exploration is going extremely well as you know by our previous announcement about a month ago I've said Bemis.

Speaker Change: But no we're not projecting higher grades at San Dimas at least for another couple of quarters.

Speaker Change: So look for.

Keith Neumeyer: So, you know, look for, you know, similar grades that you've seen in this quarter. It's really a throughput issue. You know, we've still out some challenging issues on science. We're working diligently to resolve that problem. We need to get more or into the mill. And that's really what the biggest challenge is. It's not so much great.

Speaker Change: Similar grade who you've seen in this quarter, it's really a throughput issue you know we still have some challenging issues on site with.

Keith N. Neumeyer: It's really a throughput issue. You know, we still have some challenging issues on site with the union workforce, and we're working diligently to resolve that problem. We need to get more ore into the mill, and that's really

Speaker Change: The Union workforce, and we're working diligently to resolve that problem.

Speaker Change: We need to get more ore into the mill.

That's really what the biggest challenges is not so much grade.

Don Demarco: Okay, great.

Don DeMarco: Okay, great. Well, listen, that's all for me, and congratulations and good luck on a back-end weighted year. Thank you.

Speaker Change: Okay, great well listen that's all for me and Greg Congratulations.

Don Demarco: Well, from that's all for me, and congratulations and good luck on a back-and-waited year. Thank you.

Speaker Change: Congratulations and good luck on our backend weighted year. Thank you.

Tom: Thanks, Tom.

Unknown Executive: That's excellent.

Operator: Once again, if you have a question, please press star, then one.

Operator: Once again, if you have a question, please press star then one. And while we wait for others to join, I'd like to pass the floor over to Mr. Daryl Ray, Manager of Investor Relations at First Majestic Silver, to take us through questions that have been submitted through the website.

Once again, if you have a question. Please press Star then one.

Speaker Change: While we wait for others to join I'd like to pass the floor to Mr. Downgrade manager of Investor Relations first Majestic silver.

Unknown Executive: And while we wait for all this to join, I'd like to pass the flow over to Mr. Darrell, Manager of Investual Relations at First Majestic Silver, to take us through questions that have been submitted through the webcast.

Speaker Change: Two questions that have been submitted through the webcast.

Unknown Executive: They've been scaling.

Daryl Ray: Thanks, Gaylene. So we've had a few questions from the webcast, Keith. Why don't we start, I think you talked a little bit about this, but kind of following on from the last question, what are the exploration catalysts for First Majestic, say, in the next 12 months? Well, we've got a huge budget.

Gaming: Okay. Thanks gaming so we had a few questions from the webcast.

Keith Neumeyer: So we've had a few questions from the webcast, Keith. What did we start? I think you talked a little bit about this, but kind of following on the last question.

Speaker Change: Why don't we just start I think you talked a little bit about that.

Speaker Change: Kind of following on the last question is what are the exploration catalysts for first Majestic say in the next 12 months.

Keith Neumeyer: It's what are the exploration catalysts for First Majestic Silver, say in the next 12 months? Well, we've got a huge budget in expiration. I think we're spending almost close to $40 million on expiration. And we'll be quite exciting to see the news coming at a Gerard Canyon over the next 12 months.

Keith N. Neumeyer: Well, we've got a huge budget for expiration. I think we're spending almost close to $40 million on expiration. It'll be quite exciting to see the news coming out of Jarrett Canyon over the next 12 months. It's our first spend on expiration, actually our first spend period since we shut Jarrett Canyon down.

Speaker Change: While we've got is a huge budget in exploration I think we're spending almost close to $40 million.

Speaker Change: On exploration will be quite exciting to see the new.

Speaker Change: It is coming out of Cherry Canyon over the next 12 months as our first spend.

Keith Neumeyer: And it's our first spend in, and as far as action, our first cent period since we've shut Gerard Canyon down. So, your G.O. team, you know, the lead bike and comes out on the cattle was pretty excited by what he's thinking is, you know, elephant there. You know, we'll see if, you know, our geological theories are correct. You know, Gerard Canyon still has 3.9 million ounces of silver, five and four through one and one. So it's a lot of gold there, but we're looking for, you know, that big elephant under one of those big caps that have never been historically drilled.

Speaker Change: And Xtra was actually our first time period since we shut Cherry Canyon pounds, so our geo team.

Keith N. Neumeyer: Our geo team, led by Gonzalo Mercado, is pretty excited by what he's thinking is an elephant there. We'll see if our geological theories are correct. Jarrett Canyon still has 3.9 million ounces of silver to find in 43-101, so there's a lot of gold there. But we are looking for that big elephant under one of those big caps that have never been drill tested. That's really what I've got my eyes on, but the continued success at Santelena is pretty outstanding.

Speaker Change: Led by Ken Kunze, our Mercado was pretty excited by.

Speaker Change: What he is thinking as elephant there.

Speaker Change: Let's see of our geological theories are correct, you know Cherry Canyon <unk>, three 9 million ounces of silver to five inventory through one on one so it's there's a lot of gold there, but we are looking for that big elephant times or one of those big caps that are never been that historically drove.

Keith Neumeyer: That's really what I've kind of got my eyes on. But the continued success of Santa Elena is pretty outstanding. We have some news. I think coming on the next month or so on drill results at Santa Elena. Just, you know, a month ago we put Gerard's all together on San DMS. You know, we've got over 20 re-exact of, you know, throughout the business. So, you know, we don't make it regular to have it coming out with.

Speaker Change: That's what I've got.

Speaker Change: Got my eyes on by the continued success at Santa Elena is pretty outstanding.

Keith N. Neumeyer: We have some news, I think, coming out in the next month or so on drill results at Santelena. Just a month ago, we put drill results out for San Dimas. We've got over 20 rigs active throughout the business. We don't make a regular habit of coming out with drill holes. I think people are more concerned, at least what I hear from investors, are more concerned about what we're producing versus what we're drilling.

Speaker Change: We have some news I think coming out in the next month or so on drill results at San <unk> laid out.

Speaker Change: You know a month ago, we put girls all of a sudden about 10 P. M S.

Speaker Change: We've got over 20 rigs active.

For all of the business. So we don't make a regular habit of coming out with.

Keith Neumeyer: You know, I think people are more concerned than what I hear from investors are more concerned about what we're producing versus what we're drilling. But, you know, we are a mining company and we do tend to, you know, every, you know, maybe six months would put on an update on our exploration programs. But, you know, our staff has, you know, 300 geologists that work for the company. You know, it's a lot of people focused on, you know, getting ounces defined and then you're getting them out and then developing those ounces and getting those ounces into the middle to increase mine life and the increase production.

Speaker Change: Drill holes you know I think people are more concerned when I hear from investors are more concerned about what we're producing versus what we're drilling but we are a mining company and we do tend to you know every you know maybe six months kind of an update on our exploration programs, but you.

Keith N. Neumeyer: We are a mining company, and we do tend to, every 6 months, put out an update on our exploration programs. Our staff has 300 geologists that work for the company. That's a lot of people focused on getting ounces of gold and then getting them out and then developing those ounces and getting those ounces into the mill to increase mine life and increase production.

Speaker Change: Our staff has got 300 geologists to work for the company and all the time.

Speaker Change: A lot of people focused on getting alex's defined and getting them out and get.

Speaker Change: Then develop developing those ounces and getting those houses into the mill to increase mine life.

Speaker Change: Increased production.

Unknown Executive: Okay, thanks, Keith.

Keith: Okay. Thanks Keith.

Keith Neumeyer: The second question that we have is about First Mint. How is the first mint coming along? Well, I think everyone internally is pretty excited about it. We just came back from your crew's conference. I'm in Florida. We are most of our team was there. And I can tell you, you know, just from people that I met in thousands and thousands of shareholders that came up to me and complimented us for, you know, being the first mining company in a world tower, first mint. I was quite encouraging. We started production in March of this year, and we're still not up to full throughput.

Speaker Change: Question that we have.

Speaker Change: First meant how is the first meant coming along.

Keith N. Neumeyer: Well, I think everyone internally is quite excited about it. We just came back from the Recruals Conference in Florida. Most of our team was there.

Speaker Change: Well, it's I think everyone internally is quite excited about hotel. We just came back from your accruals conference site in Florida.

Speaker Change: Our most of our team was there.

Speaker Change: And I can tell you you know just from people that I met.

Speaker Change: And dozens and dozens of shareholders that came up to me and.

Howard: Complemented us for being the first mining company in the World Howard first men.

Howard: It was quite encouraging we started production in March of this year.

Howard: And we're still not up to full throughput.

Keith Neumeyer: But if we're getting there, we're still installing machines today. Our inaugural opening ceremony is scheduled for September, and all the machines should be in place at that time. You know, currently we're producing 5,000, 10,000, one kilo bars. Now, hopefully by September or October we'll be producing coins, and we're expecting the seat production there. You know, increase, you know, quite nice there with the next several quarters.

Howard: But we're getting there we're still installing machines today, our inaugural opening ceremony is scheduled for September.

Keith N. Neumeyer: And I can tell you, just from the people that I met and the dozens and dozens and dozens of shareholders that came up to me and complimented us on being the first mining company in the world to have our first mint, it was quite encouraging. We started production in March of this year, and we're still not up to full throughput. But we're getting there. We're still installing machines today. Our inaugural opening ceremony is scheduled for September.

Howard: All of this you should be in place at that time. Currently we are producing five ounce 10 ounce in one kilo bars now hopefully by September October will be producing coins and we're expecting to see our production there.

Howard: Increased quite nicely over the next several quarters.

Unknown Executive: Okay, great.

Daryl Ray: Okay, great. And we have one more in the queue here.

Howard: Okay, Great and we have one more in.

Unknown Executive: And we have one more in the queue here before hand back to Gaelin to see if you want to pull for more questions. So we've had two questions, and I just summarized them. You've talked a little bit about them before, but can you give an update on Chair Canyon Beyond?

Speaker Change: Q1 here before I hand back to <unk>, if you want to poll for more questions.

Daryl Ray: Beforehand, back to Gaylene, see if you want to pull for more questions. We've had two questions, and I just summarized them. You've talked a little bit about them before, but can you give an update on Jarrett Canyon beyond maybe what you've said already? Sure.

Speaker Change: Okay.

Speaker Change: We've had two questions that I, just summarized and you've talked a little bit about it before but is can you give an update on <unk> and beyond.

Keith Neumeyer: Maybe what you said already. Sure. Well, Chair Canyon, you know, it's still, you know, we need to make some investments there. It's quite clear. The mill needs upgrading; you know, the winter that hit us in the December-January of 2022, 2023 was pretty hard on that mill. It needs to be winterized. We don't want to go through another situation whereby that mill is so badly affected by weather.

Speaker Change: Maybe what you said already sure.

Keith N. Neumeyer: Sure. Well, Jarrett Canyon, you know, it's still, We need to make some investments there. It's quite clear that the mill needs upgrading. You know, the winter that hit us in December and January of 2022-2023 was pretty hard on that mill. It needs to be winterized.

Cherry Canyon: Cherry Canyon, you know age it Phil.

Cherry Canyon: We need to make some investments there is quite is quite clear that the mill <unk> upgrading the.

Speaker Change: The winter that hit US in December January of 2022, 2023 was pretty hard on that mill.

Keith N. Neumeyer: We don't want to go through another situation whereby that mill is so badly affected by weather. So it will take some time and some money, some investment there. But drilling is really key. So there's two focuses. One is, well, actually three focuses.

Speaker Change: It needs to be winterized.

Speaker Change: We don't want to go through another situation whereby that mill is so badly affected by weather.

Keith Neumeyer: So we'll take some time and add some money; some investment there, but drilling is really key. So there's two focuses. One is, well, actually three focuses. One is rebuilding the mine plan, go to bring the 3.9 million ounces of oil out of the ground in an economic fashion. That is underway. Coming up with a rebuild of the mill, we're still planning. We know what needs to be done. It's not curling our budget. I don't think it'll be in our budget likely until probably 2026.

Speaker Change: So it will take some time and some money some investment there.

Speaker Change: But drilling is really key so there's two focuses one is.

Keith N. Neumeyer: One is rebuilding the mine plant, you know, to bring the 3.9 million ounces of gold out of the ground in an economical fashion. That is underway. Coming up with a rebuild of the mill, we're still planning. We know what needs to be done. It's not currently in our budget. I don't think it'll be in our budget, likely until probably 2026. So we're going to spend the next 18 months really focused on drilling.

Speaker Change: Well actually three purposes, one is rebuilding the mine plan to to bring back $3 9 million ounces of gold out of the ground in an economic fashion that is underway.

Speaker Change: <unk> output.

Speaker Change: A rebuild of the mill.

Speaker Change: So we know what needs to be done it's not currently in our budget.

I think it will be our budget likely until probably 2026.

Keith Neumeyer: So we're going to spend the next 18 months really focused on drilling. We want to see if that elephant does exist. And our geological team is correct in their viewpoint. And if they are, then that's really the impetus for us to really start to look at turning the Chair Canyon on towards the end of 26 or into 2027.

Keith N. Neumeyer: We want to see if that elephant does exist and if our geological team is correct in their viewpoint. And if they are, then that's really going to be the impetus for us to really start to look at turning Jarrett Canyon on towards the end of 2026 or into 2027.

Speaker Change: So we're going to spend the next 18 months really focused on drilling we want to see if that elephant does exist.

Speaker Change: Our geological team is correct in their viewpoint and if they are then that's really good.

Speaker Change: A test for us to really.

Speaker Change: Start to look at turning Cherry Canyon on towards the end of 'twenty, six or or into 2027.

Unknown Executive: Thank you. I have no more questions in my Q and over there gaming.

Keith: Okay. Thanks Keith.

Daryl Ray: There are no more questions in my queue. I'll hand it over to Aimee. Once again, if you have a question.

Jack: No more questions in my queue I'll hand, it over Jack <unk>.

Operator: Once again, if you have a question, please press star, then one.

Operator: Once again, if you have a question, please press star then one. Okay, well, I... Yeah, well, it appears that we're right in the depths of summer and 30 degrees here in Vancouver. And I'm sure a lot of you are on vacation at the beach or wherever the hell heck you might be.

Speaker Change: Once again, if you have a question. Please press Star then one.

Unknown Executive: Okay, well, it appears that obviously we're right in the depths of summer and 30 degrees here in Vancouver. And I'm sure a lot of you are on vacation at the beach or wherever they have held Peck, you might be. But anyways, thanks for those of you who joined us today. And this is recorded. And if there are any individuals that are listening to this, actually the fact, please feel free to contact any of our people. People, Mattie or Darryl, you know, Mark, you'll feel free to call us at any time or send an email at info@firstprogester.com.

Speaker Change: Okay.

Speaker Change: Got it.

Speaker Change: And it appears that.

Speaker Change: Obviously, we're right in the depths of summer and.

Speaker Change: 30 degrees here in Vancouver and.

Speaker Change: I'm sure. The law of you are on vacation or at the beach or wherever the Hell you might be but anyways.

Keith N. Neumeyer: But anyways, thanks to those of you who joined us today. And this is recorded. And if there are any individuals that are listening to this after the fact, please feel free to contact any of our people, Manny or Daryl or Joel or Mark, feel free to call us at any time or send an email at info at firstmajor.com if you have other questions for us. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. The Ultimate Parody Site!

unknown: ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Speaker Change: Thanks for those of you who joined US today and this is recorded and if there are any individuals that are listening to this acts as a fact, please feel free to contact us.

Speaker Change: Any of our.

Speaker Change: People are.

Speaker Change: Got it.

Speaker Change: Many are or.

Speaker Change: R J, Daryl or Joel or Mark feel free to call us at any time or are sent by E mail at infill at first Majestic Dot com.

Unknown Executive: If you have other questions for us. Thanks again for joining us.

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