Q2 2024 First Majestic Silver Corp Operating Results Call

Speaker Change: [music].

Robert Kwan.

[music].

Operator: Thank you for standing by. This is the conference operator. Welcome to First Majestic Silver's second quarter production results and H2 2024 guidance conference call. 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. If you're participating through the webcast, you can submit a question in writing using the form in the lower section of the webcast frame.

Speaker Change: 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: This is the conference operator.

Operator: Welcome to the first Majestic Silver, second quarter production results, and H2 2024 guidance conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions.

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

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

Operator: To join the question queue, you may press star, then one on your telephone keypad. If you're participating through the webcast, you can submit a question in writing using the form in the lower section of the webcast frame.

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.

Operator: Should you need assistance during the conference call? You may signal an operator by pressing star then zero.

Operator: 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.

Keith Neumeyer: 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.

Keith Neumeyer: 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.

Keith Neumeyer: Thank you, operator, and welcome everyone to our mid-year conference call, which we do every July. And 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. We have Samir Patel, who's our general counsel and corporate secretary. We also have David Soares, our CFO, chief financial officer. We also have Danny Alcatajee, VP Corporate Development and Investrelations. We also have James Dixon, Director Finance, Delray Investrelations Manager, Joel Feltinksky, Investrelations, Emma Amos. Mark Brothers, Manager of Private Client Services, Corporate Development. In line, we're happy to have Steve Holmes, who's valid in from afar.

Keith Neumeyer: Thank you, Operator, and welcome everyone to our mid-year conference call, which we do every July, and 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. We have Samir Patel, who's our General Counsel and Corporate Secretary. We also have David Soares, our CFO, Chief Financial Officer. We also have Manny Alcazar, VP of Corporate Development and Investor Relations.

Keith Neumeyer: Thank you operator, and welcome everyone to our mid year Conference call with review of every July and.

Keith Neumeyer: We also have James Dixon, Director of Finance; and Del Rey, Investor Relations Manager. Joel Valtinsky, Investor Relations Analyst. Mark Carruthers, Manager of Private Client Services, Corporate Development. 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 Samir. Go ahead, Samir. Thank you.

I am surrounded by a number of our key staff today here in Vancouver.

Keith Neumeyer: Wanted to quickly go through that.

Speaker Change: The names of each individual we have Samir Patel Who's our general Counsel corporate Secretary, Paul Davis, harass, our CFO Chief Financial Officer.

Also have Manny I'll congratulate VP corporate development and Investor Relations.

Speaker Change: James Dixon Director Finance Delray Investor Relations manager, Joel called Pink Ski Investor Relations Analyst Mark Brothers manager private client services corporate relevant online, where we're happy to have Steve Holmes Who's dialed in from far he's actually of our San Demus mine.

Keith Neumeyer: He's actually our Sandimas line in Mexico joining us today.

Speaker Change: Mexico.

Speaker Change: Joining us today.

Keith Neumeyer: Before I get into the call, I'm just going to transfer all the two Samir.

Speaker Change: Before I get into the call.

Speaker Change: I'm, just going to transfer over to Samir.

Samir Patel: I'll go ahead, Samir. Thank you.

Speaker Change: Oh go ahead Sir.

Samir Patel: Thank you, Pete. 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.

Samir: 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.

Samir Patel: Before we begin today's call, I would like to remind you that we will be referring to certain non-ISRS measures and making certain statements regarding First Majestic Silver-Hannis Operations that constitute four looking statements in accordance with the flexible Canadian and US Curies laws. All statements that are not a start of the fact, such statements regarding future estimates and plans, or expectations of future performance, constitute four looking statements that reflect the company's current views with respect to future. These statements are necessarily based upon a number of assumptions and estimates that are considered reasonable by the company, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies.

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

Samir: Patients of future performance.

Samir: Forward looking statements that reflect the company's current views with respect to future events.

Samir Patel: These statements are necessarily based upon a number of assumptions and estimates that are considered reasonable by the company, and 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 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.

Samir: 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.

Samir Patel: We encourage you to refer to the Portrait language included in our news release that was disseminated early this morning and the disclosure on non-IFRS measures in our most recently filed management discussion announcements, as well as the risk factors set out in our most recently filed annual information form.

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

Speaker Change: Disclosure of non <unk> measures and our most recently filed management's discussion and analysis as well as the risk factors set out in our most recently filed annual information form.

Samir Patel: As a reminder, these documents, along with all of our continued social documents, are available on C.D.O. Plus and on Edgith.

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

Samir Patel: Investors are cautioned against attributing 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.

Samir Patel: Investors are cautioned against attributing undue certainty or reliance on any forward-looking statements made during today's call, and the company does not intend or assume any obligation to update these forward-looking statements or information, other than as required by law.

Speaker Change: Investors are cautioned against this should be saying <unk> 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 Neumeyer: With that, I will turn it all back to Keith. Thank you, Samir. I'm sure everyone online has seen our news release that was put out very early this morning.

Keith 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-coated ounces, of which 2.1 were 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 Neumeyer: 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 and three in <unk> just under 40000 ounce gold how we also updated our guidance for the balance of the year some.

Keith Neumeyer: I just had a headline. We produced 5.3 million silver cover announces, of which 2.1 was silver and 3.3, you know, just under 40,000 hours of gold. And we also updated our guidance for the balance of the year. Some highlights that you may not have noticed due to the increased mental prices. We've decided to increase our cafx slightly by 9%. We've increased our development expenses by 11%. Primarily at 10.1 by adding 3 kilometers of additional development. Now, we've also increased our expiration as well. Primarily at 10.1 by going from 95,000 meters there to 115,000 meters. Nice increase in expiration at 10.1.

Speaker Change: Highlights that you may not have noticed two due to the increased metal prices, we have decided to increase our capex slightly <unk>, 9%.

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

Keith 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 going from 95000 meters there too.

Speaker Change: 15000 meters nice increase in exploration that's had the most volatile just started on the exploration trying to Cherry Canyon. This week.

Keith Neumeyer: We've also just started on the expiration trend at Cherry Canyon this week. We've got 3 rigs being void, which was in our original forecast anyways, but I just wanted to add that for people that wanted to have questions regarding Cherry Canyon. Our production and our guidance, our gold, our apartment silver is up by 1%; gold is down a little bit. We do the grade that we've reduced our gold guidance by 3%. And mostly sending is related. If you look at H2 only because you only did put out the consolidated guidance, you'll see an improvement on the total production of 26% and an improvement at gold production of 7%.

Speaker Change: Three rigs before that which was in our original forecast anyways, but I just wanted to add that for people that wanted to have questions regarding <unk>.

Keith 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, so we've reduced our gold guidance by 3%, mostly San Dimas related. 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.

Speaker Change: Canyon, our production in our guidance.

Speaker Change: Gold.

Speaker Change: Apartments silver is up 1% gold is down a little bit rate to the grade that we produced our gold guidance by 3%, mostly semi Ms related.

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

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

Keith Neumeyer: So, H2 is looking to be quite a robust half of the year compared to H1. Look at Tadi; we have a 38% increase in silver production in Tata, and we're expecting a 26% increase in silver equivalent production at S&D, so that's going to be very heavily weighted in Q4. There is a slight increase in costs on a consolidated basis of about 3% cash costs and 4% on all of the same costs, but if you isolate out H2 on its own, you'll see a drop in low cost in the Tata by 16%, which is obviously nice to see.

Speaker Change: So as to who is looking to be.

Speaker Change: Quite a robust half of the year compared to each one I'll let <unk>.

Keith Neumeyer: For Lincolntata, we have a 38% increase in silver production at Lincolntata, 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. 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 Lincolntata by 16%, which is obviously nice to see.

Speaker Change: About 38% increase.

Speaker Change: Silver production in the cantata and we're expecting a 26% increase in silver equivalent production at San Demus, and that's going to be very heavily weighted in Q2.

Speaker Change: Q4.

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

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

Speaker Change: Cost of Lincoln's Hatter by 16%, which is obviously nice to see how we were affected by the peso.

Keith Neumeyer: We were affected by the peso. We did guide in our January guidance, 18.25 to 1, and they are stronger than what we anticipated, and that did affect us by over $10 million for H1. We're hoping to see the peso weakened in H2 once the new government takes over, but we have a lot of states uncertain how we continually guide the peso at 18.25, and...

Keith 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 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: We did guide in our January guidance of $18 two five to one D. C. U S dollar are for the peso.

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 are honest is uncertain, we continually guide.

Speaker Change: The pace of 18.25.

Speaker Change: And.

Keith Neumeyer: That's really it for my notes.

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

Samir Patel: So if we have to open the call after questions, we'll be happy to answer any questions that may come in. Thank you, Keith.

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

Speaker Change: Turning to questions that may come in.

Operator: Key. 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 keys. To withdraw your question, please press star then two. 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.

Speaker Change: Thank you Keith.

Operator: We will now begin the question and answer session. Once again, to join the question, you may press star, then one on your telephone keypad. You'll hear a tone acknowledging your request.

Speaker Change: 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.

Operator: If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.

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

Speaker Change: Your question. Please press Star then two.

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

Speaker Change: Thank you for participating today and through the webcast to consolidate your question writing well use in this forum in the lower section at the webcast frame.

Don Demarco: Our first question is from Don DeMarco 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, Chief 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 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 to hate system installed there. Any way through to kind of get the recovery's trending back up again to contribute a little bit more.

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

Speaker Change: Any read through to kind of.

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

Keith Neumeyer: Well, thanks, and glad you're able to join us today. There were, there were recoveries. You're probably referring to our related to the silver recoveries. I'm assuming gold recoveries have been, you know, quite stable. But the Hermitano or is the silver is not as recoverable as the Santa Elena or so you probably used to seeing this silver recoveries at Santa Elena in the low 90s, and because of the Hermitano or it's very heavy gold. And then some some more rate silver. The recoveries are just simply lower on the silver, but you know, the grade there is, you know, it's a lot of gold coming out of that area.

Keith Neumeyer: Well, thanks, Don, and I'm 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 Santa Elena ore, so you're probably used to seeing silver recoveries at Santa Elena in the low 90s. And because of the ermitannial ore, it's very heavy gold, and 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.

Speaker Change: Were there recoveries, you're probably referring to are related to the silver recoveries I'm assuming.

Speaker Change: Gold recoveries have been.

Speaker Change: <unk> stable.

Speaker Change: But the army taiyo or is the silver is not as recoverable 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 the army Cagny wars, very heavy cold and some some war rage silver the.

Speaker Change: Our recoveries are just simply lower on the silver, but the grade there is.

Speaker Change: Yes.

A lot of goals coming out of that area I'm not sure if that answers your question.

Don Demarco: I'm not sure if that answers your question. Yeah, that is my question. That's good to hear. Yeah, I was looking at the silver, in particular, although it is fairly gold weighted.

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 or some of the challenges behind the lower grades?

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

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

Don Demarco: And so looking at San Jimas, I mean, if you get and demons lined up, then you kind of have all three assets firing together. Looks like grades have been trending a little bit lower.

Speaker Change: And so looking at San Dimas I mean, if you get an E. Ms lined up then you got to have all three assets firing together.

Speaker Change: It looks like grades it then.

Speaker Change: Trending a little bit lower.

Keith Neumeyer: Can you tell us, can you give a little bit more color on the outlook or some of the challenges behind the lower grade? Well, I said transition now. San Jimas 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 your, you know, Jessica was a very robust, very large structure. It's been our primary feed for the middle for five years, and that vein is now coming to end of its life. Now we're moving into a variety of other veins.

Speaker Change: Can you tell us can you give a little bit more color on your outlook or are some of the challenges behind the lower grade.

Keith Neumeyer: Well, as 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.

Speaker Change: Well I said transmission outside the U S is going through a transition right now are going to be.

Speaker Change: Primary production was really from there being call it Jessica.

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

Keith 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 vein is now coming to end of its life, our moving into a variety of other veins.

Keith Neumeyer: Exploration is going extremely well, as you know. By our previous announcement about a month ago, I said demons, but you were not projecting higher grades at San Jimas, at least for another couple of quarters. 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 still have some challenging issues on sites with union workforce, and 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 grade. Okay, great.

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.

So look for.

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

Keith 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 what the biggest challenge is. It's not so much grade. OK.

Speaker Change: New workforce and we're working diligently to resolve that problem.

We need to get more ore into the mill.

Speaker Change: That's really what our biggest challenges is not so much 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, listen, that's all for me, and congratulations and good luck on a back-in weighted year. Thank you. Thanks.

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

Tom: Thanks, Tom.

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

Operator: Once again, if you have a question, please press star then 1. 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 webinar.

Darla: Once again you have a question please darla.

Darla: Then one.

Darrell Ray: While we wait for others to join, I'd like to pass the floor over to Mr. Darrell Ray, Manager of Investor Relations at First Majestic Silver, to take us through questions that have been submitted through the webcast.

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

Two questions that have been submitted through the webcast.

Darrell Ray: Thanks, Gailene. 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 the last question. What are the exploration catalysts for First Majestic, say in the next 12 months? Well, we've got a huge budget in exploration. I think we're spending almost close to $40 million on exploration. We'll be quite exciting to see the new discounting out of Jeric Canyon over the next 12 months.

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?

Speaker Change: The bank's scaling so we had a few questions from the webcast.

Speaker Change: Why don't we 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 sea in the next 12 months.

Keith 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: Well, we've got is a huge budget in exploration I think we're spending almost close to $40 million.

Speaker Change: On exploration would be quite exciting to see that.

Speaker Change: News coming out of Cherry Canyon over the next 12 months and it's our first spend.

Keith Neumeyer: It's our first spend, and actually our first spend period since we've shut Jeric Canyon down. So your RGL team, led by Gonzalo Mercado, was pretty excited by what he's thinking is, you know, elephant there. We'll see if your archaeological theories are correct. Jeric Canyon still has 3.9 million ounces of silver to find in 421, 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 historically drilled. That's really what I've kind of got my eyes on. But the continuous success at Centrelina is pretty outstanding.

Speaker Change: And as Raj actually our percent period since we shut Cherry Canyon down so our geo team.

Keith Neumeyer: So our GEO team, led by Gonzalo Mercado, is pretty excited by what he's thinking as 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 kind of got my eyes on.

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

Raj: What he is thinking as elephant there.

We'll see you know our geological theories are correct Cherry Canyon size three nine.

Raj: Ounces of silver five inventory through one on one so it's there's a lot of gold there, but how we are looking for that big elephants out there one of those big caps that have never been historically drilled.

Raj: That's really what I've kind of got my eyes on but the continued success at Santa Elena is pretty outstanding.

Keith Neumeyer: But the continued success at Santa Elena is pretty outstanding. We have some news, I think, coming out in the next month or so on drill results at Santa Elena. Just a month ago, we put drill results out on San Dimas. We've got over 20 rigs active throughout the business, so 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.

Keith Neumeyer: We have some news I think coming out in the next month or so on drill results at Centrelina. Just a month ago, we put drills all the time on San Dimas. We've got over 20 re-exactives throughout the business, so 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. But we are a mining company, and we do tend to, every maybe six months, we'll put out an update on our exploration programs. But our staff has got 300 geologists to work for the company, and that's a lot of people focused on getting ounces defined and then getting them out and then developing those ounces and getting those ounces into the mill to increase mine life and increase production.

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

You know a month ago, we point Charles I'll start on <unk>, we've got over 20 rigs active.

Charles: Throughout the business. So we don't make a regular habit of coming out with.

Charles: 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.

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

Maybe six months kind of an update on our exploration programs, but Tom Your staff has got.

Tom: 300 geologists have worked for the company in.

Alex: A lot of people focused on getting Alex as defined in.

Alex: Getting them out and then get developed.

Alex: Developing those ounces and getting those houses into the mill to increase mine life and increase production.

Darrell Ray: Okay, thanks, Keith.

Keith Neumeyer: Okay, thanks, Keith. The second question that we have is about First Mint. How is First Mint coming along?

Keith Neumeyer: 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 excited about it. We just came back from your crew's conference site in Florida. Our most of our team was there and I can tell you, you know, just from people that I met and dozens and dozens and dozens of shareholders that came up to me and complimented us for being the first mining company in the world. How our first mint was quite encouraging. We started production in March of this year, and we're still not up to full throughput.

Keith Neumeyer: Second question that we have is about first meant how is the first meant coming along.

Keith Neumeyer: Well, I think everyone internally is quite excited about it. We just came back from Rick Rule's conference in Florida. Most of our team was there, 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.

Keith Neumeyer: Well, it's I think everyone internally is quite excited about how we just came back from your accruals conference site in Florida.

Keith Neumeyer: Our most of our team was there.

Keith Neumeyer: And I can tell you you know just from people that I met Tim.

Keith Neumeyer: And dozens and dozens of shareholders that came up to me and Carl.

Keith Neumeyer: Carl commented us for being the first mining company in the World Howard first men.

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

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

Keith Neumeyer: 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, and all the machines should be in place at that time. Currently, we're producing 5-ounce, 10-ounce, and 1-kilo bars. Now, hopefully, by September, we'll be producing coins, and we're expecting to see production there increase quite nicely over the next several quarters.

Keith Neumeyer: But 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 five ounce, ten ounce, and one kilo of bars. Now, hopefully by September, October we'll be producing coins. And we're expecting to see production there, you know, increase quite nicely over the next several quarters.

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

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

Keith Neumeyer: All of this you should be in place at that time currently we are producing $5 10 ounce in one kilo bars now hopefully by September October will be producing coins and we're expecting to see production there.

Keith Neumeyer: Increased quite nicely over the next several quarters.

Keith Neumeyer: Okay, great, 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 Jeric Canyon Beyond? Maybe what you said already? Sure, well, Jeric Canyon, 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 Samir, January of 2022, 2023 was pretty hard on that mill. It needs to be winterized.

Operator: Beforehand, back to Gaylene, see if you want to poll 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 Jarrett Canyon beyond maybe what you've said already? Sure.

Speaker Change: Okay, Great and we have one more in.

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

Speaker Change: So.

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.

Maybe what you said already sure.

Keith Neumeyer: Sure. Well, Jarrett Canyon, the OAS, it's still, I don't know.

Cherry Canyon: Cherry Canyon, you know age it's still.

Keith Neumeyer: We need to make some investments there. It's quite clear. The mill needs upgrading. 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: We need to make some investments there is quite is quite clear that the.

Cherry Canyon: The mill.

Cherry Canyon: Upgrading.

Cherry Canyon: The winter that hit US in December January of 2022 2023.

Cherry Canyon: Pretty hard on that mill.

Keith 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.

Keith Neumeyer: We don't want to go through another situation whereby that mill is so badly affected by weather. So we'll take some time and end 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 line plan. You know, to bring that 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: We don't want to go through another situation whereby that mill is so badly affected by weather.

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

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

Speaker Change: Well actually three focuses one is rebuilding the mine plan.

Keith Neumeyer: One is rebuilding the mine plant to bring the 3.9 million ounces of gold out of the ground in an economical fashion. That is underway. We're coming up with a rebuild of the mill. We're still planning. We know what needs to be done, but 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. 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: To bring that $3 9 million ounces of gold out of the ground in an economic fashion that is underway.

Speaker Change: Coming up with.

Speaker Change: A rebuild of the mill, we're still apply we know what needs to be done it's not currently in our budget.

Speaker Change: Don't think it'll 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.

Speaker Change: So we're going to spend the next 18 months really focused on drawing.

Speaker Change: We want to see if that elephant does exist.

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

Keith Neumeyer: And if they are, then that's really the impetus for us to really start to look at turning Jeric Canyon on towards the end of 26 or into 2027. Thank you.

Speaker Change: Tests for us to really.

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

Keith Neumeyer: Okay. Thanks Keith.

Darrell Ray: I have no more questions in my queue and over the game.

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

Speaker Change: No more questions in my queue, I'll hand, it over that gain.

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

Operator: Once again, if you have a question, please press star then 1. OK, well, I've got it.

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

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Yes.

Keith Neumeyer: Yeah, well, 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 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 firstmajestic. Thanks again for joining us. This concludes today's conference call. You may disconnect your lines at any time. Thank you for participating, and have a pleasant day.

Speaker Change: Now it appears that.

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

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 they are held back she might be but any place.

Music/No Speaker: ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??

Keith Neumeyer: You might be, but thanks for those of you who joined us today. And this is recorded.

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 auction. The fact, please feel free to contact us.

Keith Neumeyer: And if there are any individuals that are listening to this action, the fact, please feel free to contact any of our people. If you have any questions for us, thank you again for joining us.

Speaker Change: Or any of our <unk>.

Speaker Change: People are.

Manny: Manny or or or.

Speaker Change: Jack Darrell Jones, Mark feel free to call us at any timers are sent by E mail at infill at first Majestic Dot Com Yep.

Speaker Change: There are questions for us.

Speaker Change: Thanks again for joining us.

Operator: This concludes today's conference call. You may disconnect your lines.

Speaker Change: This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Operator: Thank you for participating, and have a pleasant day. Thank you. .

Speaker Change: [music].

Speaker Change: Mhm.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].