Q2 2024 Aya Gold & Silver Inc Earnings Call

Speaker Change: Good day and thank you for standing by. Welcome to Aya Gold & Silver's 2nd Quarter 2024 Results Conference Call.

Operator: 2024 Results Conference Call. At this time, all participants are in a listen-only mode.

Operator: 2024 Results Conference Call. At this time, all participants are in a listen-only mode.

Operator: After the CEO's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised.

Operator: After the CEO's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press Star-1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star-1-1 again.

Speaker Change: At this time, all participants are in a listen-only mode.

Speaker Change: After the CEO's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.

Operator: Please be advised that today's conference is being recorded.

Operator: To withdraw your question, please press star 111 again. Please be advised that today's conference is being recorded. I would now like to turn the call over to Ruth Hanna, Manager, Investor Relations & Communications at Aya. Please go ahead.

Speaker Change: To withdraw your question, please press star 11 again.

Ruth Hanna: I would now like to turn the call over to Ruth Hanna, Manager, Investor Relations, and Communications at Aya. Please go ahead.

Speaker Change: Please be advised that today's conference is being recorded. I would now like to turn the call over to Ruth Hanna, Manager, Investor Relations and Communications at AYA. Please go ahead.

Ruth Hanna: Thank you, operator.

Ruth Hanna: Thank you, operator. Good morning, everyone, and welcome to AYA's second quarter 2024 results conference call. My name is Ruth Hanna, and I'm dialing in with the AYA team from Montreal and Morocco this morning.

Ruth Hanna: Good morning, everyone. And welcome to Aya's second quarter 2024 results conference call. My name is Ruth Hanna, and I'm dialing in with the Aya team from Montreal and Marrakesh this morning. So on the call today, we have Benoit La Salle, President and CEO, Hugo Longreit-Oltzuc, CFO, Rafael Boudouin, Vice-President Operations, and Debbie La Land, VP Expiration.

Ruth Hanna: Thank you, operator. Good morning, everyone and welcome to AYA's second quarter 2024 results conference call. My name is Ruth Hanna, and I'm dialing in with the AYA team from Montreal and Marrakesh this morning.

Ruth Hanna: So, on the call today, we have Benoit Lassalle, President and CEO, Hugo Landry-Toltzouk, CFO, Raphael Boudoin, Vice President of Operations, and David Lalande, VP of Exploration. We will finish today's event with a Q&A session with the team. Please contact our IR team directly with any follow-up questions that are not addressed during the call. Before we begin, I'd like to remind listeners that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Speaker Change: So, on the call today, we have Benoit Lassalle, President and CEO, Hugo Landry-Toltzouk, CFO, Raphael Boudoin, Vice President Operations, and David Lalande, VP Exploration.

Ruth Hanna: We will finish today's event with a Q&A session with the team. Please contact our Aya team directly with any follow-up questions that are not addressed during the call.

Speaker Change: We will finish today's event with a Q&A session with the team. Please contact our IR team directly with any follow-up questions that are not addressed during the call.

Ruth Hanna: Before we begin, I'd like to remind listeners that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Details of the forward-looking statements are contained in our August 14th news release, as well as on C. Doclus and at www.ayagoldsilver.com.

Speaker Change: Before we begin I'd like to remind listeners that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Ruth Hanna: Details of the forward-looking statements are contained in our August 14th news release as well as on CDOC's list and at www.ayagoldsilver.com. With that, I'd like to turn the conference over to Aya's President and CEO, Benoit Lassalle. Benoit, please go ahead.

Speaker Change: Details of the forward-looking statements are contained in our August 14th news release as well as on CDAR Plus and at www.ayagoldsilver.com

Ruth Hanna: With that, I'd like to turn the conference over to Aya's President and CEO, Benoit La Salle.

Benoit La Salle: Benoit, please go ahead. Thank you, Ruth.

Benoit Lassalle: Thank you, Ruth. Good morning, everyone. Welcome to the Q2 2024 conference call. I'm pleased to present to you a robust quarter in a milestone year. We continue to advance the Zgunder mine as per our plan, and we are pleased to say that we are on schedule and budget for commercial production in Q4 2024. An important element which is often missed is that we now have a stockpile on the rumpad of 309,000 tonnes of ore at the end of this quarter.

Speaker Change: With that, I'd like to turn the conference over to AYA's President and CEO, Benoit Lassalle.

Benoit La Salle: Good morning, everyone. Welcome to the Q2 2020-24 conference call. I'm pleased to present to you a robust quarter in a milestone year. We continue to advance this Gundaer mine as per our plan. We are pleased to say that we are on schedule and budget for commercial production in Q4 2020-24. An important element, which is often missed, is that we now have stockpile on the run pad of 309,000 tonne of ore at the end of this quarter. Our goal originally, we communicated to you that we are aimed with a 260,000 tonne and we are, we have reached almost 310,000 tonne to be ready for the ramp up in Q4.

Sunwa: Sunwa, please go ahead.

Benoit Lassalle: Thank you, Ruth. Good morning, everyone. Welcome to the Q2 2024 conference call.

Benoit Lassalle: I'm pleased to present to you a robust quarter in a milestone year.

Speaker Change: We continue to advance the Sgunder mine as per our plan. We are pleased to say that we are on schedule and budget for commercial production in Q4 2024.

Speaker Change: An important element which is often missed is that we now have stockpile on the rumpad of 309,000 tons of ore at the end of this quarter.

Benoit Lassalle: Our goal originally was, we communicated to you that our aim was at 260,000 tonnes, and we have reached almost 310,000 tonnes to be ready for the ramp-up in Q4. We've delivered more typical resolve that we see from Sgoondair. Our production Discordr was 432,000 ounces due to an increase in fresh ore, mainly some coming from the open pit. We generated a revenue of $13.7 million USD as a result of Q1 selling of Silver Concentrate that we had in inventory and also our production.

Speaker Change: Our goal originally, we communicated to you that our aim was a 260,000 ton and we have reached almost 310,000 ton to be ready for the ramp up in Q4.

Benoit La Salle: We've delivered more typical resolve that we see from Gundaer. Our production discord was 432,000 ounces due to an increase in fresh ore, mainly some coming from the open pit. We generated revenue of 13.7 million U.S. dollars as a result of Q1 selling of silver concentrated. We had an inventory and also our production. There was no over of inventory from one quarter to the next as we saw in Q1. Our net income is $6.8 million for the quarter, and our total cash cost is $17.85. I will comment on that on the next page. We have a very strong balance sheet.

Speaker Change: We've delivered more typical results that we see from Sgundair. Our production this quarter was 432,000 ounces due to an increase in fresh ore, mainly some coming from the open pit. We generated revenue of 13.7 million US dollars.

Speaker Change: As a result of Q1 selling of silver concentrate that we had in inventory and also our production, there was no over of inventory from one quarter to the next as we saw in Q1.

Benoit Lassalle: There was no overstock of inventory from one quarter to the next as we saw in Q1. Our net income was $6.8 million for the quarter, and our total cash cost was $17.85, and I will comment on that on the next page. We have a very strong balance sheet. We closed the quarter with $103 million in cash and cash equivalents.

Speaker Change: Our net income is $6.8 million for the quarter, and our total cash cost is $17.85, and I will comment on that on the next page.

Benoit La Salle: We close the quarter with 103 million in cash and cash equivalent. And importantly, we were able to draw down the last 50 million on our EBRD loan for now a total of a hundred million dollars. And why I say it's important because before we can draw down on the EBRD loan, we have to go through full GD with them due diligence with them. They come to site, the team goes to site, we go through all their KPIs, all their ESG KPIs, and then they authorize the draw down. I'm pleased to say that as of today, we have drawn down the full amount, the one hundred million US dollars.

Speaker Change: We have a very strong balance sheet.

Benoit Lassalle: And importantly, we were able to draw down the last $15 million on our EBRD loan for now a total of $100 million. And why do I say it's important? Because before we can draw down on the EBRD loan, we have to go through full DD with them, due diligence with them, they come to site, the team goes to site, we go through all their KPIs, all their ESG KPIs, and then they authorize the drawdown.

Speaker Change: We closed the quarter with $103 million in cash.

Speaker Change: and Cash Equivalent

Speaker Change: And importantly, we were able to draw down the last $15 million on our EBRD loan.

Speaker Change: for now a total of $100 million.

Speaker Change: And why I say it's important? Because before we can draw down on the EBRD loan, we have to go through full GED with them, due diligence with them. They come to site, the team goes to site, we go through all their KPIs, all their ESG KPIs, and then they authorize the drawdown.

Benoit Lassalle: I'm pleased to say that as of today, we have drawn down the full amount, the $100 million. During the quarter, we still had, and we continue to have ongoing positive results from our exploration program. We've confirmed high-grade mineralization again at depth, and an important piece of news this morning, we've doubled the drill program at Sgunder's main zone from the originally planned 15,000 meters up to 30,000 meters as we keep hitting, and we have now consumed all of the budget for this year at mid-year. We've extended the Boumadine main trend.

Speaker Change: I am pleased to say that as of today we have drawn down the full amount the 100 million US dollars.

Benoit La Salle: During the quarter, we still have and we continue to have ongoing positive results from our expiration program. We've confirmed high-grade mineralization again at depth. And an important piece of news this morning, we've doubled the drill program at Gundair Main Zone from the originally planned 15,000 meters up to 30,000 meters as we keep hitting, and we have now consumed all of the budget for this year at mid-year. We've extended the Bumad in Maintrend. You recall, we did the resource calculation on 4.2 kilometers. We're now drilled up to 5 kilometers at the end of the quarter, and during the quarter as well, we've acquired seven new permits, which we are now up to 18 new permits since we made the discovery.

Speaker Change: During the quarter, we still have and we continue to have ongoing positive results from our exploration programs.

Speaker Change: We've confirmed high-grade mineralization again at depth.

Speaker Change: And an important piece of news this morning, we've doubled the drill program at Zgundere main zone from the originally planned 15,000 meters up to 30,000 meters as we keep hitting and we have now consumed all of the budget for this year at mid-year.

Benoit Lassalle: You recall we did the resource calculation on 4.2 kilometers. We're now drilled up to 5 kilometers at the end of the quarter, and during the quarter, as well, we've acquired seven new permits; we are now up to 18 new permits since we made the discovery. We've identified multiple potential high conductive anomalies to the west and to the south of the Boumadine main zone.

Speaker Change: We've extended the Bumadin main trend. You recall we did the resource calculation on 4.2 km. We're now drilled up to 5 km at the end of the quarter, and during the quarter as well we've acquired 7 new permits.

Speaker Change: which we are now up to 18 new permits since we made the discovery. We've identified multiple potential high conductive anomalies to the west and to the south of the Boumediene Main Zone.

Benoit La Salle: We've identified multiple potential high-conductive anomalies to the west and to the south of the Bumad in the Main Zone. So it's a robust quarter. Again, the highlights of it: 95% completion of the construction, 432,000 ounces of production. It's a 42% increase from the previous quarter, same period last year, 100 million in the bank, US dollar, and we've increased the Gundair drill program by 100% or we've doubled it. That's taking us to page four of the presentation, and we had that discussion in Q1 where, you know, this is as our plan. I mean, we were mining according to our plan.

Benoit Lassalle: So it's a robust quarter. Again, the highlights of it, 95% completion of the construction, 432,000 ounces of production. It's a 42% increase from the previous quarter, same period last year. 100 million in the bank, US dollars, and we've increased this Günder Drill Program by 100%, or we've doubled it. That's taking us to page four of the presentation.

Speaker Change: So, it's a robust quarter.

Speaker Change: Again, the highlights of it, 95% completion of the construction.

Speaker Change: 432,000 ounces of production. It's a 42% increase from the previous quarter, same period last year. 100 million in the bank, U.S. dollar, and we've increased this Günder drill program by 100% or we've doubled it.

Benoit Lassalle: And we had that discussion in Q1 where, you know, this is our plan. I mean, we were mining according to our plan. We were processing according to our plan. So it's a steady state production at Zbundaeh, and where we have a summary of the guidance and a summary of the results in Q2 and in H1. And we are confirming to you that the guidance is staying intact, and it is part of our plan.

Speaker Change: That's taking us to page 4 of the presentation.

Speaker Change: And we had that discussion in Q1, where, you know, this is as our plan. I mean, we were mining according to our plan, we were processing according to our plan.

Benoit La Salle: We were processing according to our plan. So it's a steady state production at Gundair, and where we have a summary of the guidance and a summary of the results in Q2 and in H1, and we are confirming to you the guidance is staying intact, and it is as part of our plan. So, after two quarters, we are at almost 800,000 ounces of production, and we knew that the big production, or the more important production, was coming in in H2, Q3, and mainly in Q4 as we're going to be, you know, kicking in with the new plant.

Speaker Change: So, it's a steady-state production at Zgundehech, and where we have a summary of the guidance and a summary of the results in Q2 and in H1.

Benoit Lassalle: So after two quarters, we are at almost 800,000 ounces of production, and we knew that the big production or the more important production was coming in in H2, Q3 and mainly in Q4 as we're going to be kicking in with the new plan. The cash cost was higher in Q1. It was $20.

Speaker Change: and we are confirming to you the guidance is staying intact and it is as part of our plan.

Speaker Change: So, after two quarters, we are at almost 800,000 ounces of production, and we knew that the big production, or the more important production, was coming in in H2, Q3, and mainly in Q4, as we're going to be kicking in with the new plant.

Benoit La Salle: The cash cost was higher in Q1. It was $20. We told we would come down in Q2 at $17, and we're maintaining our guidance for the end of the year because we know that we're heading into, you know, better grade and better recovery for the end of the year. So the average grade for Q2 was 196. You recall the average grade for Q1 was 173, and we said at the time that Q1, Q2 would be below, you know, the expected grade for the year. We were mining, you know, in sequence. We are also mining differently.

Benoit Lassalle: We told you it would come down in Q2 at $17, and we're maintaining our guidance for the end of the year because we know that we're heading into better grades and better recovery for the end of the year. So the average grade for Q2 was 196. You recall the average grade for Q1 was 173 and we said at the time that Q1, Q2 would be below the expected grade for the year.

Speaker Change: The cash cost was higher in Q1. It was $20. We told you it would come down in Q2 at $17 and we're maintaining our guidance for the end of the year because we know that we're heading into, you know, better grade and better recovery for the end of the year.

Speaker Change: So the average grade for Q2 was 196.

Speaker Change: You recall the average grade for Q1 was 173 and we said it at the time that Q1-Q2 would be below the expected grade for the year. We were mining in sequence, we are also mining differently, we have started also to backfill some of the galleries.

Benoit Lassalle: We were mining in sequence, but we are also mining differently. We have also started to backfill some of the galleries, and we knew that we were heading towards higher-grade galleries in Q3 and Q4. Mail recoveries were 81% or 82% in Q1. We were better at 84%, and 85% in Q2, and we knew that as we were getting into better grades and deeper into the open fifth, we would get better recovery. The Sun Process is excellent.

Benoit La Salle: We have started also to backfill some of the galleries, and we knew that we were heading towards higher grade galleries in Q3 and Q4. Mail recoveries were at 81 percent or 82 percent in Q1. We are better at 84, 85 percent in Q2, and we knew that as we were getting into better grade, and to the open fifth deeper, and to the open fifth, we would get better recovery. Sun process is excellent. We are at 80,000. We were at 80,000 as well in Q1 and is just way above the design capacity of these two plants.

Speaker Change: Hence, we knew that we were heading towards higher grade galleries in Q3 and Q4.

Speaker Change: Mill recoveries were 81% or 82% in Q1, we're better at 84, 85% in Q2, and we knew that as we were getting into better grade and deeper into the open pit, we would get better recoveries.

Benoit Lassalle: We are at 80,000. We were at 80,000 as well in Q1, and it's just way above the design capacity of these two plants. So we're, you know, we're doing extremely well. The availability, which doesn't show on the slide, but the availability of the plants in Q2 was around 96%.

Speaker Change: It's unprocessed.

Speaker Change: is excellent. We are at 80,000. We were at 80,000 as well in Q1 and it's just way above the design capacity of these two plants, so we're doing extremely well. The availability, which doesn't show on the slide, but the availability of the plants in Q2 was around 96% and you all know that that's extremely good for a plant and mining to be available 96% of the time.

Benoit La Salle: So we're, you know, we're doing extremely well. The availability, which doesn't show on the slide. But the availability of the plants in Q2 was around 96%. And you all know that that's extremely good. But for a plant and mining to be available 96% of the time. Taking us to page 5 of the presentation, just a couple of bar charts on the top left side, the silver production, you know, with the two plants, it running at the historical plants. We should be between 4 and 500,000 a month, and that's exactly where we are. We're back up there, which is normal for Skundae.

Benoit Lassalle: And you all know that that's extremely good for a plant and mining to be available 96% of the time. Taking us to page 5 of the presentation, just a couple of bar charts on the top left side, showing silver production. With the two plants running, the historical plants, we should be between $400,000 and $500,000 a month, and that's exactly where we are. We're back up there, which is normal for secondaire. The grade We expected it to be lower in Q1, Q2, but it is. We're expecting it to kick back up in Q3, Q4. It will.

Speaker Change: Taking us to page 5 of the presentation, just a couple of bar charts on the top left side, the silver production, you know, with the two plants running, the historical plants, we should be between $400,000 and $500,000 a month, and that's exactly where we are. We're back up there, which is normal for Zgundaer.

Benoit La Salle: The grade we expected it to be lower in Q1, Q2, it is. We're expecting it to kick back up in Q3, Q4; it will. So that's what you're seeing on the left-hand side at the bottom. The mill recoveries, again, we've hit up to 87%. We're now at 84.7. We know that with the new plant, we will be above 90%. So that will kick in. I'm not telling we will be above 90 and Q4, but that will kick in one where steady state. And the ton process, while we're there, we are achieving records where we're 20% above design capacity.

Speaker Change: The grade, we expected it to be lower in Q1, Q2. It is. We're expecting it to kick back up in Q3, Q4. It will. So that's what you're seeing on the left-hand side at the bottom.

Benoit Lassalle: That's what you're seeing on the left-hand side at the bottom. The mill recoveries, again, we've hit up to 87%. We're now at 84.7%. We know that with the new plant, we will be above 90%. That will kick in.

Speaker Change: The mill recoveries, again, we've hit up to 87%. We're now at 84.7%. We know that with the new plant, we will be above 90%, so that will kick in. I'm not telling you we will be above 90% in Q4, but that will kick in when we're a steady state.

Benoit Lassalle: I'm not telling you we will be above 90% in Q4, but that will kick in when we're in a steady state. The ton process, while we're achieving records, we're 20% above design capacity, if not 25% above design capacity, which you're seeing on the right-hand side at the bottom. On Page 6, you have the cash flow. We had a strong quarter with $5 million of cash flow coming from Zgunder. The gross margin is at 4.9%. The cost of sale is, of course, a function of production, so the cost of sale is up there.

Speaker Change: And the ton process, while we're there, we are achieving records where we're 20% above design capacity, if not 25% above design capacity, which you're seeing on the right-hand side at the bottom.

Benoit La Salle: It's about 25% above design capacity, which you're seeing on the right-hand side at the bottom. Page 6, you have the cash flow. We had a strong quarter with $5 million of cash flow coming from Skundae. The gross margin is at 4.9%. The cost of sale is, of course, a function of the production. So the cost of sale is up there. Let me just remove this. The cost of sale is at 8.8 million. And the cash cost, as we discussed when we reviewed guidance, is 17.85. It's higher than the historical four years, but we also knew that the cost was going to be going up this year as we were preparing for the new capacity.

Speaker Change: Page six you have the cash flow we had a strong quarter with

Speaker Change: $5 million of cash flow coming from Segundaire.

Speaker Change: The gross margin is at 4.9%. The cost of sale is, of course, a function of the production. So the cost of sale is up there.

Benoit Lassalle: The cost of sale is $8.8 million, and the cash cost, as we discussed when we reviewed guidance, is $17.85. It's higher than the historical four years, but we also knew that the cost was going to be going up this year as we were preparing for the new capacity. Moving to page seven, the construction. So this is a major milestone. We know that in our industry it's very difficult to be on time and on budget.

Speaker Change: It just...

Speaker Change: remove this the cost of sale is at 8.8 million

Speaker Change: And the cash cost, as we discussed when we reviewed guidance, is $17.85. It's higher than the historical four years, but we also knew that the cost was going to be going up this year as we were preparing for the new capacity.

Benoit La Salle: Moving to page 7, the construction. So this is a major milestone. We know that in our industry, that's very difficult to be on time and on budget. Underground development is on track. We're 96% done on lateral development, 83% on vertical. But we have one, then, that is completed. You've seen in some of the video. We're progressing to plant on electrical work, instrumentation, piping, marrow crow, all of that. You saw we've poured already a couple of silver bars. The underground workshop is spectacular. You can see that in the videos. The warehouse, the backfill station is up and running, and the silver room building as well.

Speaker Change: Moving to page seven.

Benoit Lassalle: We have been putting out videos to show you where we are. Today, we can tell you that we are 95% complete. We're on track to completion and on track with our capital cost estimate. Underground development is on track. We're 96% done on lateral development, 83% on vertical, but we have one vent that is completed, as you have seen in some of the videos.

Speaker Change: the construction. So this is a major milestone. We know that in our industry that's very difficult to be on time and on budget. We have been putting out videos to show you where we are. Today we can tell you that we are 95% complete.

Speaker Change: We're on track to completion, and on track with our capital cost estimate. Underground development is on track. We're 96% done on lateral development, 83% on vertical, but we have one vent that is completed, you've seen in some of the videos.

Benoit Lassalle: We're progressing to the plant on electrical work, instrumentation, piping, Merrill Crowe, all of that. You saw we've already poured a couple of silver bars. The underground workshop is spectacular. You can see that in the videos.

Speaker Change: We're progressing to plant on electrical work, instrumentation, piping, marrow crow, all of that you saw. We've poured already a couple of silver bars.

Speaker Change: The underground workshop is spectacular. You can see that in the videos, the warehouse, the backfill station is up and running, and the silver room building as well.

Benoit Lassalle: The warehouse, the backfill station, and the silver room building are up and running, so we've completed on time and on schedule all the civil work, structural work, equipment, silver room, electrical power line, and the lab. All of that's been completed, and we are pleased to say that, as of now, we are operating on green energy. The power line was commissioned. It's extremely important because it's green. It's very rare in the world that you can operate 100% on green energy.

Benoit La Salle: So we've completed the on time and on schedule, all the civil work, structural work, equipment, silver room, electrical power line, and the lab. All of that's been completed. We are pleased to say that, as of now, we are operating on green energy. The power line was commissioned. It's extremely important because it's green. It's very rare in the world that you operate 100% on green energy. It's a PPA that we have signed with an independent power producer. We're getting it from the grid. We build it on time and on budget. It is a fantastic job. So we are now running on green energy.

Speaker Change: So, we've completed the on-time and on-schedule, all the civil work, structural work, equipment, silver room, electrical power line, and the lab, all of that's been completed.

Speaker Change: We are pleased to say that as of now we are operating on green energy The power line was commissioned It's it's it's extremely important because it's green. It's

Speaker Change: Very rare in the world that you operate 100% on green energy. It's a PPA that we have signed with an independent power producer. We're getting it from the grid. We build it on time and on budget. It is a fantastic job.

Benoit Lassalle: It's a PPA that we have signed with an independent power producer. We're getting it from the grid. We build it on time and on budget. It is a fantastic job.

Benoit La Salle: Going to page 10, the drill program. We've created value historically by drilling. The original budget for this year was 145,000 meters of drilling. We have about 15, 16 drills thirding at all time. So the original program has gone; there was 15,000 meters. And as of now, it is completed. So we have authorized an additional 15,000 meters. So the program has been expanded to 30,000 meters at Gundair, the main zone. And that's following very, very good results. Bumadin is on track. You know, Bumadin has 120,000 meter program. We are currently at 42,000, but we knew that we knew that H1 would be a bit slower.

Benoit Lassalle: So we are now running on green energy. Going to page 10, the drill program. So, you know, we've created value historically by drilling. The original budget for this year was 144, 145, sorry, 1000 meters of drilling. We have about 15, 16 drills starting at all times.

Speaker Change: We are now running on green energy.

Speaker Change: Going to page 10.

Speaker Change: the drill program. So what's, you know, we've created value historically by drilling. The original budget for this year was 144, 145, sorry, thousand meters of drilling. We have about 15, 16 drills starting at all time.

Benoit Lassalle: So the original program at Gundair was 15,000 meters, and as of now, it is completed. So we have authorized an additional 15,000 meters. So the program has been expanded to 30,000 meters at Gundair, the main zone, and that's following very, very good results. Bumadin is on track, you know Bumadin has a 120,000 meter program. We are currently at 42,000, but we knew that. We knew that H1 would be a bit slower; it was Ramadan as well.

Speaker Change: So the original program at Gounder was 15,000 meters.

Speaker Change: And as of now, it is completed, so we have authorized an additional 15,000 meters, so the program's been expanded to 30,000 meters at Sgunder, the main zone.

Speaker Change: And that's following very, very good results.

Speaker Change: Boumediene is on track, you know Boumediene has a 120,000 meter program.

Benoit Lassalle: So we knew that we would have a smaller production in H1, but looking to catch up in H2, you recall that on the 120,000 meters program, 60,000 meters are on the main zone, on the Boumadin Zone, the 4.2 km, which is now 5, which we want to increase because it's still open north, south, and at that, and there's another 60,000 meters that will test new targets, new targets that have been identified. We've shared with you one of them in the west.

Benoit La Salle: It was Ramadan as well. So we knew that we would have a smaller production in H1, but looking to catch up in H2. You recall that on 120,000 meters program, 60,000 meters is on the main zone. On the Bumadin zone, the 4.2 kilometer, which is now five, which we want to, you know, increase because it's still open north south and at depth. And there's another 60,000 meters that will test new targets, new targets that have been identified. We've shared with you one of them to the west. There are more to come. We've completed the Mobile MT regional survey.

Speaker Change: We are currently at 42,000, but we knew that H1 would be a bit slower, it was Ramadan as well, so we knew that we would have a smaller production in H1, but looking to catch up in H2. You recall that on the 120,000m program, 60,000m is on the main zone?

Speaker Change: on the Boumediene zone, the 4.2 kilometer, which is now 5, which we want to, you know, increase because it's still open north, south, and at depth.

Speaker Change: and there's another 60,000 meters that will test new targets, new targets that haven't been identified. We've shared with you one of them to the west. There are more to come. We've completed the mobile MT regional survey and that is giving us some, you know, geophysics targets and we're waiting for additional data.

Benoit Lassalle: There are more to come. We've completed the Mobile MT Regional Survey, and that is giving us some geophysical targets, and we're waiting for additional data. On this Gundaer Regional, it's ongoing. We have a 10,000-meter program that's been worked on. David and the team are looking for similar metalization.

Benoit La Salle: And that is giving us some, you know, geophysics targets, and we're waiting for additional data. On the Gundair Regional, it's ongoing. We have a 10,000 meter program that's being, you know, worked on. David and the team are looking for similar mentalization. As Gundair, there's a lot of geological theory and targets that are being tested. We've also completed the geophysics on Tierzit, which is very close by to the mine. So we're expecting a very busy H2 at Gundair and at Tierzit. And Amiz Minnes is a small project that we have in which we, you know, we have never focused a lot.

Speaker Change: On the Secondaire Regional, it's ongoing. We have a 10,000 meter program that's being worked on. David and the team are looking for similar mineralization. At Secondaire, there's a lot of geological theory and targets that are being tested. We've also completed the geophysics on Tirzit, which is very close by to the mine. So we're expecting a very busy H2 at Secondaire and at Tirzit.

Benoit Lassalle: As with Gundaer, there's a lot of geological theory and targets that are being tested. We've also completed the geophysics on Tillsit, which is very close to the mine. So we're expecting a very busy H2 at Gundaer and at Tillsit. And Hammy Smith is a small project that we have which we have never focused on.

Benoit Lassalle: A lot. We may start a small drill campaign there as it has great gold potential. Taking us to page 11 to talk about Zgounder, it's a big news event. We are doubling up that program from 15,000 to 30,000 meters. For us, it's like when you're drilling 120,000 meters at Boumadine. It seems small, but it is important because we're drilling that zone, which is 1.4 kilometers long, has a depth of about 600 meters, and the results keep coming in.

Speaker Change: And Amuse-Vuz is a small project that we have in which we have never focused a lot. We may start a small drill campaign there as it has a great goal potential.

Benoit La Salle: We may start a small drill campaign there as it has a great, great goal potential.

Benoit La Salle: Taking us to page 11 to talk about Gundair, it's a big news event. We are doubling up that program from 15 to 30,000 meters. I know for us, it's like when you're drilling 120,000 meters at Bumazin, it seems small, but it is important because we're drilling that zone, which is 1.4 kilometer long at a depth of about 600 meters. And the results keep coming in. We've been giving you results. They're more to come, but, you know, we're often hitting 1,000 gram per ton, over like we have here, 13 meters, 2,000 gram per ton, over 8 meters, and it is ongoing.

Speaker Change: Taking us to page 11 to talk about Zgounder, it's a big news event. We are doubling up that program from 15 to 30,000 meters. I know for us it's like when you're drilling 120,000 meters at Boumadine, it seems small but it is important because we're drilling that zone which is 1.4 kilometer long, has a depth of about 600 meters.

Benoit Lassalle: We've been giving you results, and there are more to come, but we're often hitting 1,000 grams per ton over, like we have here, 13 meters, 2,000 grams per ton over 8 meters, and it is ongoing. One of the focus areas is where it touches the granite at the bottom of the structure, and so far we've been pretty good at hitting mineralization. Go to page 12 on GUMADIN.

Operator: 2024 Results Conference Call At this time, all participants are in a listen-only mode. After the CEO's presentation, there will be a question and answer session. To ask a question during the session, you will need to press Star-1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star-1-1 again.

Speaker Change: And the results keep coming in. We've been giving you results. There are more to come. But, you know, we're often hitting 1,000 grams per ton over, like we have here, 13 meters, 2,000 grams per ton over 8 meters, and it is ongoing. One of the focuses is where it touches the granite at the bottom of the structure. And so far, we've been pretty good at hitting mineralization.

Benoit La Salle: One of the focus is where it's such as the granite at the bottom of the structure, and so far we've been pretty good at hitting mineralization.

Benoit La Salle: I'm going to page 12 on Bumazin. Bumadjin is a cornerstone asset of Aya. Through drilling, we've really shown a beautiful right now 5 km structure. As I indicated, we're going to be drilling 120,000 meters there. But through field work, so we've done the drilling in this quarter. We've done 27,000 meters in this quarter, 42 after two quarters. So by, you know, subtraction, there's 80,000 meters to come in age two. We've seen results. We're going to be seeing more results soon. It's really, it is ongoing. I believe we have nine drills there. It changes sometimes, but up to nine drill at the moment, turning and a lot of many results are coming.

Benoit Lassalle: Bu Majin is a cornerstone asset of Aya. We, you know, through drilling, we've really shown a beautiful 5 kilometer structure right now. As I indicated, we're going to be drilling 120,000 meters there. But through field work.

Speaker Change: Going to page 12 on Bumadin.

Operator: Please be advised that today's conference is being recorded.

Speaker Change: Boumadiene is a cornerstone asset of Aya. We, you know, through drilling we've really shown a beautiful

Ruth Hanna: I would now like to turn the call over to Ruth Hanna, manager, investor relations, and communications at Aya. Please go ahead. Thank you, operator. Good morning, everyone. And welcome to Aya's second quarter 2024 Results Conference Call. My name is Ruth Hanna, and I'm dialing in with the Aya team from Montreal, and Marrakesh this morning. So on the call today, we have Benoit La Salle, president and CEO, Hugo Longreit-Oltzuc, CFO, Rafael Boudouin, vice-president operations, and Debbie La Land, VP expiration.

Speaker Change: Right now 5 kilometer structure as I indicated we're going to be drilling a hundred and twenty thousand meters there

Ruth Hanna: We will finish today's event with a Q&A session with the team. Please contact our Aya team directly with any follow-up questions that are not addressed during the call. Before we begin, I'd like to remind listeners that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to different materially from those in the forward-looking statements. Details of the forward-looking statements are contained in our August 14th news release, as well as on C.Doclus and at www.ayagoldsilver.com.

Speaker Change: But through fieldwork, so we've done the drilling in this quarter, we've done 27,000 meters this quarter, 42 after two quarters.

Benoit Lassalle: So we've done the drilling this quarter. We've done 27,000 meters this quarter, 42 after 2 quarters. So by, you know, substraction, there's 80,000 meters to come in age 2. We've seen results. We're going to be seeing more results soon. It's really ongoing.

Speaker Change: So, by subtraction, there's 80,000 meters to come in H2. We've seen results. We're going to be seeing more results soon. It is ongoing. I believe we have nine drills there. It changes sometimes, but up to nine drills at the moment, internally, and many results are coming.

Benoit Lassalle: I believe we have nine drills there. It changes sometimes, but up to nine drills at the moment are turning, and a lot of many results are coming. But through field work, we've been mapping and doing perception on the 18 new permits because our goal is to control the zone.

Benoit La Salle: But through the field work, we've been mapping and doing the perception on the 18 new permits, because Aya Gold is to control the zone. We want to control the whole district, the Bumadjin District. So we're still working on new permits, but we have 18. So we've completed the mapping, the high-spectral. We're using all of the techniques that we know work. We've completed the mobile MT program, 13,000 lines that were, you know, flew over by with the helicopter. It's an extremely large and important program. It's a new program in Morocco, and it's giving us extremely, extremely interesting results that we'll show you in a minute.

Speaker Change: But through the fieldwork, we've been mapping and doing the prospection on the 18 new permits.

Speaker Change: because our goal is to control the zone. We want to control the whole district, the Boumediene district.

Speaker Change: So we're still working on new permits, but we have 18, so we've completed the mapping, the hyperspectral, we're using all of the techniques that we know work.

Benoit Lassalle: We want to control the whole district, the whole Bu Majin district. So we're still working on new permits, but we have 18. So we've completed the mapping. We're using all of the techniques that we know work.

Speaker Change: We've completed the mobile MT program.

Benoit La Salle: With that, I'd like to turn the conference over to Aya's president and CEO, Benoit La Salle. Benoit, please go ahead. Thank you, Ruth.

Speaker Change: 13,000 lines that were you know flew over by with the helicopter. It's it's an extremely large and important program. It's a new program in in in Morocco and it's giving us extremely extremely interesting results that I'll show you in a minute.

Benoit La Salle: Good morning, everyone. Welcome to the Q2 2020-24 conference call. I'm pleased to present to you a robust quarter in a milestone year. We continue to advance this Gundaer mine as per our plan. We are pleased to say that we are on schedule and budget for commercial production in Q4 2020-24. An important element, which is often missed, is that we now have stockpile on the run pad of 309,000 tonne of ore at the end of this quarter.

Benoit La Salle: So it's our field work is continuing. Our drilling is continuing, and our consolidation is continuing. We've increased our land package by 188,198 square kilometers, and our goal is to increase that considerably.

Speaker Change: So, our fieldwork is continuing, our drilling is continuing, and our consolidation is continuing. We've increased our land package by 198 square kilometers, and our goal is to increase that considerably.

Benoit Lassalle: We've completed the mobile MT program. 13,000 lines that were, you know, flew over by with the helicopter. It's an extremely large and important program. It's a new program in Morocco.

Benoit Lassalle: And it's giving us extremely, extremely interesting results that we will show you in a minute. So our fieldwork is continuing, our drilling is continuing, and our consolidation is continuing. We've increased our land package by 198 square kilometers, and our goal is to increase that considerably. A couple of results on page 13 on Boumadine, those are silver equivalent, a thousand grams per ton of silver equivalent at 13 meters.

Benoit La Salle: A couple of results on page 13 on Bumadjin. Those are silver equivalent, a thousand gram per ton of silver equivalent on 13 meters. So you, we keep, you know, hitting, you recall that on page 18, you recall that the resource that was put out in March and the final report was filed 45 days later in Q2 that we were showing 352 million ounces of silver equivalent or 4.1 million ounces in gold equivalent. So that is just the beginning. It's on 4.2 kilometers. We've now extended it to five, and we are drilling it to extend that to the north and to the south.

Benoit Lassalle: So we keep hitting. You recall that on page 18, the resource that was put out in March and the final report was filed 45 days later in Q2, that we were showing 352 million ounces of silver equivalent or 4.1 million ounces of gold equivalent. So that is just the beginning. It's on 4.2 kilometers. We've now extended it to five, and we are drilling it to extend that to the north and to the south. 41 percent of the resource was in-pit, and 59 was deemed underground. We're continuing the drilling where, as I indicated, 60,000 meters are going on strike, and 60,000 is going on the parallel zone. Why?

Speaker Change: A couple of results on page 13 on Boumadine, those are silver equivalent, a thousand gram per ton of silver equivalent on 13 meters, so you, we keep, you know, hitting, you recall that on page 18, you recall that the resource that was put out.

Benoit La Salle: Our goal originally, we communicated to you that we are aimed with a 260,000 tonne and we are, we have reached almost 310,000 tonne to be ready for the ramp up in Q4. We've delivered more typical resolve that we see from Gundaer. Our production discord was 432,000 ounces due to an increase in fresh ore, mainly some coming from the open pit. We generated revenue of 13.7 million U.S, dollars as a result of Q1 selling of silver concentrated.

Speaker Change: in March, and the final report was filed 45 days later, in Q2, that we were showing 352 million ounces

Speaker Change: silver equivalent or 4.1 million ounces in gold equivalent. So that is just the beginning. It's on 4.2 kilometer. We've now extended it to 5.

Benoit La Salle: 41% of the resource was in fifth; 59% was deemed underground. We're continuing the drilling. We're, as I indicated, 60,000 meter is going on strike, and 60,000 is going on the parallel zone. Why?

Speaker Change: And we are drilling it to extend that to the north and to the south.

Speaker Change: 41% of the resource was in-pit. 59% was deemed underground. We're continuing the drilling where, as I indicated, 60,000 meters is going on strike and 60,000 is going on the parallel zone. Why? Well, take a look at page 15.

Benoit La Salle: We had an inventory and also our production. There was no over of inventory from one quarter to the next as we saw in Q1. Our net income is $6.8 million for the quarter and our total cash cost is $17.85 and I will comment on that on the next page. We have a very strong balance sheet. We close the quarter with 103 million in cash and cash equivalent. And importantly, we were able to draw down the last 50 million on our EBRD loan for now a total of a hundred million dollars.

Benoit Lassalle: Well, take a look at page 15. If you look at page 15, you see a portion of the geophysics. We did not give it all out.

Benoit La Salle: Well, take a look at page 15. If you take a look at page 15, you see a portion of the geophysics. We did not give it all out. We're keeping a lot of information right now to ourselves, but you have, you see on the right inside the purple color. That's the main zone. That's what we've been drilling. And that's up to now five kilometers, but the signature is longer than that. And look to the west or to the left and side where you have that same purple color. So it's a very large potential conductive anomaly, which is five kilometers west of Bumadzin, similar orientation, stronger intensity than the Bumadzin main zone, main conductor.

Benoit Lassalle: We're keeping a lot of information right now to ourselves, but you see on the right-hand side, the purple color; that's the main zone. That's what we've been drilling, and that's up to now five kilometers, but the signature is longer than that. And look to the west or to the left-hand side where you have that same purple color. So it's a very large potential conductive anomaly, which is five kilometers west of Boumeddine. Similar orientation, and stronger intensity than the Boumeddine main zone and main conductor.

Speaker Change: If you take a look at page 15, you see a portion of the geophysics. We did not give it all out. We're keeping a lot of information right now to ourselves.

Speaker Change: but you have, you see on the right-hand side, the purple color, that's the main zone. That's what we've been drilling.

Benoit La Salle: And why I say it's important because before we can draw down on the EBRD loan, we have to go through full GD with them due diligence with them. They come to site, the team goes to site, we go through all their KPIs, all their ESG KPIs, and then they authorize the draw down. I'm pleased to say that as of today, we have drawn down the full amount, the one hundred million US dollars.

Speaker Change: up to now five kilometers, but the signature is longer than that. And look to the west, or to the left-hand side, where you have that same purple color. So it's a very large potential conductive anomaly, which is five kilometers west of Boumeddine.

Speaker Change: similar orientation, stronger intensity than the Boubadin main zone, main conductor. It's a large system. It has conductors across east-west.

Benoit La Salle: It's a large system. It has conductors across east, west, similar to what we're seeing at Bumadzin. So obviously this is now at top priorities. So we are waiting for the inversion of the data from the geophysics. We will be getting that in August. We will be reviewing this. And as soon as we have the targets, David will be moving some of the drill rigs off the main zone. And as the program will be getting close to be completed, and we'll start drilling some additional targets to the west. And hopefully towards the end of the year or early next year to the south.

Benoit Lassalle: It's a large system. It has conductors across east-west, similar to what we're seeing at Boumeddine. So obviously, this is now a top priority. So we are waiting for the inversion of the data from the geophysics. We will be getting that in August. We will be reviewing this, and as soon as we have the targets, David will be moving some of the drill rigs off the main zone, and as the program will be getting close to being completed, Ed will start drilling some additional targets to the west and, hopefully, towards the end of the year or early next year to the south. So going to page 16 on our social values and on corporate social responsibility, a very good quarter. No, no, zero lost time injuries at 3700 hours of health and safety training.

Speaker Change: Similar to what we're seeing at Boumeddine, so obviously this is now a top priority.

Speaker Change: So, we are waiting for the inversion of the data from the geophysics.

Benoit La Salle: During the quarter, we still have and we continue to have ongoing positive results from our expiration program. We've confirmed high grade mineralization again at depth. And an important piece of news this morning, we've doubled the drill program at Gundair Main Zone from the originally planned 15,000 meters, up to 30,000 meters as we keep hitting, and we have now consumed all of the budget for this year at mid-year. We've extended the Bumad in Maintrend.

Speaker Change: We will be getting that in August .

Speaker Change: We will be reviewing this, and as soon as we have the targets, David will be moving some of the drill rigs off the main zone, and as the program will be getting close to be completed, and we'll start drilling some additional targets to the west.

Speaker Change: and hopefully towards the end of the year or early next year to the South.

Benoit La Salle: So going to page 16 on our social values and on corporate social responsibility, a very good quarter, no zero lost time injuries, 3,700 hours of health and safety training. So it's a 30% increase year over year on our training. We have received certification of Emergency Response Team. You are following us on LinkedIn. You see off in some videos on the new facilities that we have. It's a very dynamic process. Everybody is body into the concept of health and safety, and it's coming along quite well. On the clean tech fund, we've met the milestones. We had, you know, milestone 1, 2, and 3 to me.

Speaker Change: So, going to page 16 on our social values and on corporate social responsibility.

Benoit La Salle: You recall, we did the resource calculation on 4.2 kilometers, we're now drilled up to 5 kilometers at the end of the quarter, and during the quarter as well, we've acquired seven new permits, which we are now up to 18 new permits since we made the discovery. We've identified multiple potential high-conductive anomalies to the west and to the south of the Bumad in Main Zone.

Speaker Change: Very good quarter, no zero lost time injuries, 3,700 hours of health and safety training. So it's a 30% increase year over year on our training.

Benoit Lassalle: So, it's a 30% increase year over year in our training. We have received certification as an emergency response team. You are following us on LinkedIn. You see videos often about the new facilities that we have. It's a very dynamic process.

Speaker Change: We have received certification of emergency response teams.

Speaker Change: You are following us on LinkedIn. You see often some videos on the new facilities that we have. It's a very dynamic process. Everybody is bought into the concept of health and safety, and it's coming along quite well.

Benoit Lassalle: Everybody is bought into the concept of health and safety, and it's coming along quite well on the clean tech fund. We've met the milestones. We had milestones one, two, and three to meet. We've met the milestones, and in meeting the milestones, our capital costs on our debt related to the TCFD are now moving, or the CTF tranche is down now to 1% cost of capital. And that was something that came with the EBRD and was very important.

Benoit La Salle: So it's a robust quarter. Again, the highlights of it, 95% completion of the construction, 432,000 ounces of production. It's a 42% increase from the previous quarter, same period last year, 100 million in the bank, US dollar, and we've increased the Gundair drill program by 100% or we've doubled it. That's taking us to page four of the presentation, and we had that discussion in Q1 where, you know, this is as our plan.

Speaker Change: On the Clean Tech Fund, we've met the milestones. We had, you know, milestone one, two, and three to meet. We've met the milestone. And in meeting the milestone, our capital costs on our debt related to the TCFD is now move or CTF tranche is down now to 1%.

Benoit La Salle: We've met the milestone, and in meeting the milestone, our capital costs on our death related to the TCFD is now moved or CTF Tronch is downed out to 1% cost of capital. And that was something that came with EBRD; it was very important. It's a $10 million tronch that went from around number 10% down to 1%. And with the local communities, well, we're extremely involved as, you know, education. We're, you know, helping with school supplies, equipment, and all that. Environmental Day, we celebrated that; Woman's Day, we celebrated that with them. And we are, you know, we have a health program where we have, you know, clinics that we have for the villages around.

Benoit Lassalle: It's a 10 million dollar tranche that went from round number 10% down to 1%. And with the local communities, well, we're extremely involved, as you know, in education. We're, you know, helping with school supplies, equipment, and all that. Environmental Day, we celebrated that. Women's Day, we celebrated that with them.

Speaker Change: cost of capital and that was something that came with EBRD was very important. It's a 10 million dollar tranche that went from round number 10 percent down to 1 percent.

Benoit La Salle: I mean, we were mining according to our plan. We were processing according to our plan. So it's a steady state production at Gundair, and where we have a summary of the guidance and a summary of the results in Q2 and in H1, and we are confirming to you the guidance is staying intact, and it is as part of our plan. So after two quarters, we are at almost 800,000 ounces of production, and we knew that the big production or the more important production was coming in in H2, Q3, and mainly in Q4 as we're going to be, you know, kicking in with the new plant.

Speaker Change: And with the local communities, well, we're extremely involved as you know, education, we're, you know, helping with school supplies, equipment and all that, environmental day, we celebrated that, women's day, we celebrated that with them.

Benoit Lassalle: And we are, you know, we have a health program where we have clinics that we have for the villages around. And we also have a livelihood project, which is gardens, vegetables, and saffron because the area is very well known for its saffron culture. So, as a summary of where we are and what we have is, the drill program is ongoing at Boumadine, and the increased drill program is ongoing at Sgoundaer, 40,000 meters. Boumadine is 120,000 feet above sea level.

Speaker Change: and we are you know we have a health program where we have you know clinics

Benoit La Salle: And we have also a livelihood projects, which is gardens, vegetable and saffron, because the area is very well known for the saffron culture.

Speaker Change: that we have for the villages around. And we have also a livelihood project, which is gardens, vegetable, and saffron, because the area is very well known for the saffron culture.

Benoit La Salle: So, as a summary of where we are and what we have, the drill program is ongoing. At Bumadzin, the in freeze drill program is ongoing at 40,000 meters. Bumadzin is 120,000 meters. So, as a group, we're going to be at 160,000 meters of drilling. So very, very, you know, large program, completely funded. The 2007 ton per day plant, which is the first, the two plants that we have plus the new plant is on time and on budget. We are in commissioning, and we expect commercial production in Q4 of 2024. And on the ESG front, well, again, as I said, we keep going through these EBRD due diligence that where we do extremely well.

Benoit La Salle: The cash cost was higher in Q1. It was $20. We told we would come down in Q2 at $17, and we're maintaining our guidance for the end of the year, because we know that we're heading into, you know, better grade and better recovery for the end of the year. So the average grade for Q2 was 196. You recall the average grade for Q1 was 173, and we said at the time that Q1, Q2 would be below, you know, the expected grade for the year.

Speaker Change: So, as a summary of where we are and what we have is

Speaker Change: The drill program is ongoing at Boumeddine, the increased drill program is ongoing at Sgounda, 40,000 meters, Boumeddine is 120,000 meters, so as a group we're going to be at 160,000 meters of drilling.

Benoit Lassalle: So, as a group, we're going to be at 160,000 meters of drilling, so, very, very you know the large program completely funded is the 2700 ton per day plant, which is the first. The two plants that we have plus the new plant are on time and on budget. We are in commissioning, and we expect commercial production in Q4 of 2024 on the ESG front. Well, again, as I said, we keep going through these EBRD due diligence processes where we do extremely well, and we are happy to say that we are fully funded. So, as a company, we have 100 million in the bank. The project's bill. There are still some payables there.

Speaker Change: So, very, very, you know, large program, completely funded.

Speaker Change: The 2,700 ton per day...

Speaker Change: plant, which is the first.

Benoit La Salle: We were mining, you know, in sequence. We are also mining differently. We have started also to backfill some of the galleries, and we knew that we were heading towards higher grade galleries in Q3 and Q4. Mail recoveries were at 81 percent or 82 percent in Q1. We are better at 84, 85 percent in Q2, and we knew that as we were getting into better grade, and to the open fifth deeper, and to the open fifth, we would get better recovery.

Speaker Change: the two plants that we have plus the new plant.

Speaker Change: is on time and on budget.

Speaker Change: We are in commissioning, and we expect commercial production in Q4 of 2024. And on the ESG front, well, again, as I said, we keep going through these EBRD due diligence, where we do extremely well, and we are happy to say that we are fully funded. So as a company, we have $100 million in the bank.

Benoit La Salle: And we are happy to say that we are fully funded. So, as a company, we have 100 million in the bank; the project's built. The, there's still some payables there. We still have, you know, some payables. But if everything goes, you know, according to plan and our budgets are, our bill, you know, with low $20 silver, you know, our minimum cash balance, we will always be around $40, $50 million. So we are fully funded for now and for the future. The plants are operating the two plants extremely well. The third plant, we will know in Q4, but it's coming very, very quickly and very well.

Benoit Lassalle: We still have some payables, but if everything goes according to plan and our budgets are built with low $20 silver, our minimum cash balance, we will always be around $40-$50 million. So, we are fully funded for now and for the future. The plants are operating, the two plants, extremely well.

Speaker Change: and the projects built.

Benoit La Salle: Sun Process is excellent. We are at 80,000. We were at 80,000 as well in Q1 and is just way above the design capacity of these two plants. So we're, you know, we're doing extremely well. The availability, which doesn't show on the slide. But the availability of the plants in Q2 was around 96%. And you all know that that's extremely good. But for a plant and mining to be available 96% of the time.

Speaker Change: There are still some payables there. We still have some payables, but if everything goes according to plan and our budgets are built with low $20 silver,

Benoit Lassalle: The third plant will be known in Q4, but it's coming very, very quickly and very well. And the drilling is going extremely well. So, that covers my presentation and operator.

Speaker Change: You know, our minimum cash balance, we will always be around 40, 50 million dollars.

Speaker Change: So we are fully funded for now and for the future. The plants are operating, the two plants, extremely well. The third plant we will know in Q4 but it's coming very very quickly and very well and the drilling is going extremely well.

Benoit La Salle: And the drilling is going extremely well. So that covers my presentation and the operator.

Operator: I think we are ready for questions.

Benoit La Salle: Taking us to page 5 of the presentation, just a couple of bar charts on the top left side, the silver production, you know, with the two plants, it running at the historical plants. We should be between 4 and 500,000 a month and that's exactly where we are. We're back up there, which is normal for Skundae. The grade we expected it to be lower in Q1, Q2, it is. We're expecting it to kick back up in Q3, Q4, it will.

Speaker Change: So, that covers my presentation. Operator, I think we are ready for questions.

Operator: Thank you.

Operator: I think we are ready for questions. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Operator: As a reminder to ask a question, please press store 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press store 1-1 again.

Speaker Change: Thank you. As a reminder to ask a question, please press store 1-1 on your telephone and wait for your name to be announced.

Operator: Please, thereby, will we compile the Q&A roster?

Operator: Please stand by while we compile the Q&A roster. Our first question comes from the line of Punit Singh from 8 Capital. Hi Benoit team.

Speaker Change: To withdraw your question, please press Star 11 again.

Speaker Change: Please stand by while we compile the Q&A roster.

Punit Singh: Our first question comes from the line of Punit Singh from 8 Capital.

Benoit La Salle: So that's what you're seeing on the left hand side at the bottom. The mill recoveries, again, we've hit up to 87%. We're now at 84.7. We know that with the new plant, we will be above 90%. So that will kick in. I'm not telling we will be above 90 and Q4, but that will kick in one where steady state. And the ton process, while we're there, we are achieving records where we're 20% above design capacity.

Speaker Change: [inaudible]

Speaker Change: Our first question comes from the line of Puneet Singh from Haight Capital.

Benoit La Salle: Hi, Ben Wan team. I wanted to ask a couple of questions on Buu Medin, first on the geophysics. Really positive to see that conductive anomaly to the west. I understand you're looking for those massive, sulfide bodies and cross-cutting features, but how will you vector in further before drilling? Could you run us through that, expand on some of those tools you were talking about, and why they're useful, and what exactly they tell you? And if you can also just repeat, I think you mentioned it, but when you expect to drill that area to the west, thanks.

Punit Singh: I wanted to ask a couple of questions on Boumediene. First, on the geophysics. Really positive to see that conductive anomaly to the west. I understand you'll be looking for those massive sulfide bodies and cross-cutting features, but how will you vector in further before drilling?

Puneet Singh: Hi, Benoit team. I wanted to ask a couple questions on Boumediene. First on the geophysics.

Puneet Singh: really positive to see that conductive anomaly to the West. I understand you'll be looking for those massive sulfide bodies and cross-cutting features, but how will you vector in further before drilling? Could you run us through that, expand on some of those tools you were talking about and why they're useful and what exactly they tell you?

David Lalande: Could you run us through that, expand on some of those tools you were talking about and why they're useful and what exactly they tell you? And if you can also just repeat, I think you mentioned it, but when do you expect to drill that area to the west? Thanks. Ok, well, we have that on the call, so that means you want to comment on the geophysics and on the spectral data and when do you expect to bring the drills over to the wet. Hi, I'll try to answer that question.

Benoit La Salle: It's about 25% above design capacity, which you're seeing on the right hand side at the bottom. Page 6, you have the cash flow. We had a strong quarter with $5 million of cash flow coming from Skundae. The gross margin is at 4.9%. The cost of sale is, of course, a function of the production. So the cost of sale is up there. Let me just remove this. The cost of sale is at 8.8 million.

Speaker Change: And if you can also just repeat, I think you mentioned it, but when do you expect to drill that area to the west?

Benoit La Salle: Okay, well, we need to have that on the call, so that means you want to comment on the geophysics and on the spectral, and when do you expect to bring the drills over to the west? I, Punit, I'll try to answer that question. Yes, the geophysics is very spectacular. I fully agree with you. What we are waiting, we start getting the final results from the company that did the survey is all the inversions. So right now we do have the magnetics, we do have the surface response and different layers from the electromagnetic, the magnetotellerics, but what we want to see before doing a drill program is a full inversion to really narrow the potential conductive corridors.

Speaker Change: Thanks!

Speaker Change: Okay, well we have David on the call, so David, do you want to comment on the geophysics and on the spectral and when do you expect to bring the drills over to the West?

David Lalande: Yes, the geophysics is very spectacular. I fully agree with you. What we are waiting for when we start getting the final results from the company that did the survey is all the inversion. So, right now, we do have the magnetics, we do have the surface response, different layers from the electromagnetic, and the magnetotellurics, but what we want to see before doing a drill program is the full inversion to really narrow the potential conductive corridors, so to better allocate the meterage and to have a more

Pony: Hi Puneet, I'll try to answer that question. Yes, the geophysics is very spectacular, I fully agree with you. What we are waiting, when we start getting the final results from the company that did the survey, is all the inversions.

Benoit La Salle: And the cash cost, as we discussed, when we reviewed guidance is 17.85. It's higher than the historical four years, but we also knew that the cost was going to be going up this year as we were preparing for the new capacity.

Speaker Change: So right now we do have the magnetics, we do have the surface.

Speaker Change: response and different layers from the electromagnetic, the magnetotellurics.

Speaker Change: But what we want to see before doing a drill program is the full inversion to really narrow the potential conductive corridors, so to better allocate the leachage and to have a more accurate drilling plan.

Benoit La Salle: Moving to page 7, the construction. So this is a major milestone. We know that in our industry, that's very difficult to be on time and on budget. Underground development is on track. We're 96% done on lateral development, 83 on vertical. But we have one then that is completed. You've seen in some of the video. We're progressing to plant on electrical work, instrumentation, piping, marrow crow, all of that. You saw we've poured already a couple of silver bars.

Benoit La Salle: So, to better allocate the nutrients and to have a more accurate drilling plan, we expect to receive those deliverables by the end of August. So then, it's a matter of building the drill program and bringing drills there. So, most likely, end of September, the beginning of October, around that time, we should be able to start a drilling campaign there. Other tools that we have and use is the eye perspectives. So the survey we've completed this year, we already have all the layers, so it allows us to really map the alteration created by hydro-termilism and or other features like dikes around the property. So that's a great tool to help us locate targets.

David Lalande: We expect to receive those deliverables by the end of August, so then it's a matter of building the drill program and bringing drill rigs there. So, most likely, the end of September, beginning of October; around that time, we should be able to start a drilling campaign there. Other tools that we have and use are the hyperspectrals, so the survey we've completed this year we already have all the layers, so it allows us to really map the alteration created by hydrothermalism and or other features like dikes around the property, so that's a great tool to help us locate targets.

Speaker Change: We expect to receive those deliverables by the end of August , so then it's a matter of building the drill program.

Speaker Change: bringing drills rigs there, so most likely end of September , beginning of October , around that time we should be able to start a drilling campaign there. Other tools that we have and use is the hyperspectral.

Speaker Change: So, the survey we've completed this year, we already have all the layers.

Speaker Change: so it allows us to really map the alteration created by hydrothermalism.

Speaker Change: and or other features like dikes around the property, so that's a great tool to help us locate targets.

Benoit La Salle: The underground workshop is spectacular. You can see that in the videos. The warehouse, the backfill station is up and running and the silver room building as well. So we've completed the on time and on schedule, all the civil work, structural work, equipment, silver room, electrical power line and the lab. All of that's been completed. We are pleased to say that as of now, we are operating on green energy. The power line was commissioned.

Benoit La Salle: And on top of that, we have some detailed mapping on the ground, lots of graphs, lots of geochemistry data. So it's a matter of all putting all those data together and come up with the best drill program for Q3, end of Q3 beginning of Q4 this year.

David Lalande: On top of that, we have some detail mapping on the ground, lots of graphs, lots of geochemistry data, so it's a matter of putting all those data together and coming up with the best drill program for the end of Q3, beginning of Q4 this year. Will the bulk of the program be focused on targets closer to the surface like it was before? How are you thinking about that split? Well, we have 60,000 metres that are already planned and well advanced. At the end of the quarter, we were at 42,000 feet, if I recall correctly.

Speaker Change: On top of that, we have some detail mapping on the ground, lots of graphs, lots of...

Jill: geochemistry data. So it's a matter of putting all those data together and come up with the best real program for Q3, end of Q3, beginning of Q4 this year.

Punit Singh: Okay, sounds good; sounds like it'd be well-timed with the higher production in Q4 first results, so that would be good to see.

Benoit La Salle: It's extremely important because it's green. It's very rare in the world that you operate 100% on green energy. It's a PPA that we have signed with an independent power producer. We're getting it from the grid. We build it on time and on budget. It is a fantastic job. So we are now running on green energy.

Speaker Change: Okay, sounds good. Sounds like it could be well-timed with the higher production in Q4 versus results, so that'd be good to see. I had one last question on the main trend at Boumediene, and the survey was showing more anomalies at depth there.

Benoit La Salle: Had one last question on the main trend at Bumadine, and the survey was showing more anomalies at depth there, but will the bulk of the program be focused on targets closer to surface like it was before, or how are you thinking about that split? Well, we have the 60,000 meters that is already planned and well advanced. Like at the end of the quarter, we were at 42,000 meters if I recall. Right now today we're at 55,000 meters completed. So the main trend will remove the program as it was, so it was mostly to extend the strike length.

Speaker Change: But, will the bulk of the program be focused on targets closer to surface like it was before? How are you thinking about that split?

David Lalande: Right now, today, we're at 55,000 metres completed. So the main trend will remove the program as it was, so it was mostly to extend the strike length. But we did reserve a few holes to go target at depth also at Bumadden and see the big geophysical anomaly.

Speaker Change: Well, we have the 60,000 meters that is already planned and well advanced. At the end of the quarter, we were at 42,000 meters, if I recall. Right now, today, we're at 55,000 meters completed.

Benoit La Salle: Going to page 10, the drill program. We've created value historically by drilling. The original budget for this year was 145,000 meters of drilling. We have about 15, 16 drills thirding at all time. So the original program has gone there was 15,000 meters. And as of now it is completed. So we have authorized an additional 15,000 meters. So the program has been expanded to 30,000 meters at Gundair, the main zone. And that's following very, very good results.

Speaker Change: So, the main trend will leave the program as it was, so it was mostly to extend the strike length.

Benoit La Salle: But we did reserve few holes to go target at depth also at the Bumadden and see the big geophysical anomaly. So as soon as we have the inversion for that tool, we will give it a try. So later in Q4 and the rest of the more regional program, if you want, of 60,000, the idea was to go and test different targets. So to see what's one there, we have a big program completed the south on some north east west structures. We will just allocate some of those targets, especially the North 70 and North 30 structures will allocate the meterage for the western geophysical anomaly.

Speaker Change: But we did reserve a few holes to go target at depth also at the Boumadin and see the big geophysical anomaly. So as soon as we have the inversion for that too, we will give it a try, so later in Q4.

David Lalande: So as soon as we have the inversion for that tool, we will give it a try, so later in Q4. And the rest of the more regional programs, if you want, of 60,000, the idea was to go and test different targets. So TZ was one; we have a big program completely in the south on some east-west structures. We will just allocate some of those targets, especially North 70 and North 77. 30 structures will allocate the measure for the Western Geophysical Anomaly.

Speaker Change: And the rest of the more regional program, if you want, of 60,000, the idea was to go and test different targets. So Tuzi was one, we have a big program completely in the south on some east-west structures.

Speaker Change: We will just allocate some of those targets, especially the North 70 and North 80.

Benoit La Salle: Bumadin is on track. You know, Bumadin has 120,000 meter program. We are currently at 42,000, but we knew that we knew that H1 would be a bit slower. It was Ramadan as well. So we knew that we would have a smaller production in H1, but looking to catch up in H2, you recall that on 120,000 meters program, 60,000 meters is on the main zone. On the Bumadin zone, the 4.2 kilometer, which is now five, which we want to, you know, increase because it's still open north south and at depth.

Speaker Change: 30 structures, we'll allocate the metric for the Western

David Lalande: It's always a matter of prioritizing the target, and with this geophysical response, we believe that it might be more significant than the small cross-cutting structure. But again, lots of those structures will test this year, and there's a lot more coming for 2025 as well, as there are plenty of geophysical targets and lots of nice things we're seeing on the ground. Thanks David, and good luck. Sounds like you have a lot to do, but let's get to your stay busy.

Benoit La Salle: It's always a matter of prioritizing the target, and with this geophysical response, we believe that it might be more significant than the small cross-cutting structures. But again, lots of those structures will test this year, and there's a lot more coming for 2025 as well as there's plenty of geophysical target and lots of nice things we're seeing on the ground.

Speaker Change: geophysical anomaly. It's always a matter of prioritizing the target and with this geophysical response we believe that it might be more significant than the small cross-cutting structures.

Speaker Change: But, again, lots of those structures we'll test this year and there's a lot more coming for 2025 as well as there's plenty of geophysical targets and lots of nice things we're seeing on the ground.

Punit Singh: Okay, thanks, David, and good luck. Sounds like you got a lot to do, but that's good to stay busy. Thanks. Thank you.

Speaker Change: Okay, thanks David and good luck, sounds like you've got a lot to do, but that's good to stay busy. Thanks.

Benoit La Salle: And there's another 60,000 meters that will test new targets, new targets that have been identified. We've shared with you one of them to the west. There are more to come. We've completed the Mobile MT Regional Survey. And that is giving us some, you know, geophysics targets, and we're waiting for additional data. On the Gundair Regional, it's ongoing. We have a 10,000 meter program that's being, you know, worked on. David and the team are looking for similar mentalization.

Punit Singh: Thanks. Thank you. One moment for our next question. Our next question comes from the line of Justin Chan from SCP Resource Finance. Hi guys, congratulations on getting skewed right to where it is and another good quarter.

Operator: One moment for our next question.

Justin Chan: Our next question comes from the line of Justin Chan from SCP Resource Finance. Hi guys, congratulations on getting to where it is, and another good quarter. A couple of questions just on perhaps the path forward and where you are now. On the vertical development, could you give us a sense of what's left to do? Is it on the ventilator or material handling or what's left on that, and how does that impact your ramp up rates? Maybe is the first question?

Speaker Change: Thank you. One moment for next question.

Speaker Change: Our next question comes from the line of Justin Chan from SCP Resource Finance.

Justin Chan: A couple of questions just on perhaps the path forward and where you are now. On vertical development, can you give us a sense of what's left to do? Is it on the vent race side or material handling, or what's left on that, and how does that impact your ramp-up rates?

Justin Chan: Hi guys, congratulations on getting skewed right to where it is and another good quarter.

Justin Chan: A couple of questions on the path forward and where you are now. On the vertical development, can you give us a sense of what's left to do? Is it on the vent rate side or material handling? What's left on that and how does that impact your ramp-up rates?

Benoit La Salle: As Gundair, there's a lot of geological theory and targets that are being tested. We've also completed the geophysics on Tierzit, which is very close by to the mine. So we're expecting a very busy H2 at Gundair and at Tierzit. And Amiz Minnes is a small project that we have in which we, you know, we have never focused a lot. We may start a small drill campaign there as it has a great, great goal potential.

Raphael Boudoin: It is the first question. Sure, I'll be happy to comment on that. This completion rate was on July 30th, so at the end of July, we were still working on one last ventilation raise for the sub-levels, and that raise is now complete. So, you can expect 100% for the next quarter on the vertical development. So, all the vent raises are completed, and we have one ore chute and one waste chute that are also completed, and we are finalizing the installation of the [inaudible] Civil work. Civil work to put them on line.

Benoit La Salle: Sure, happy, happy comment on that.

Speaker Change: It is the first question.

Benoit La Salle: This completion rate was on July 30th, so at the end of July, and we were still working on one last ventilation raise for the sub levels, and that raise's now complete. So you can expect a hundred percent on the next quarter on the vertical development. So all all vent raise are completed and we have one or shoot and one waste shoots that are also completed and we are finalizing to install the civil work, civil work with them online.

Speaker Change: Sure, happy to comment on that.

Speaker Change: This completion rate was on July 30th.

Speaker Change: So at the end of July , and we were still working on one last ventilation raise for the sub-levels, and that raise is now complete.

Speaker Change: So, you can expect 100% on next quarter on the vertical development. So, all vent rays are completed and we have one ore chute and one waste chute that are also completed. Thank you. Thank you.

Benoit La Salle: Taking us to page 11 to talk about Gundair, it's a big news event. We are doubling up that program from 15 to 30,000 meters. I know for us, it's like when you're drilling 120,000 meters at Bumazin, it seems small, but it is important because we're drilling that zone, which is 1.4 kilometer long as a depth of about 600 meter. And the results keep coming in. We've been giving you results. They're more to come, but, you know, we're often hitting 1,000 gram per ton, over like we have here, 13 meters, 2,000 gram per ton, over 8 meters, and it is ongoing. One of the focus is where it's such as the granite at the bottom of the structure, and so far we've been pretty good at hitting mineralization.

Justin Chan: But as we speak, all vertical development is now complete. Okay, perfect. Thanks.

Raphael Boudoin: But as we speak, all vertical development is now complete. Okay, perfect. Thanks. That's a great update. And on the Ore Mine this quarter, what was the split between open pit and underground? And could you give us the grades between the two, if you have that data available?

Speaker Change: Civil work, civil work to put them online, but as we speak all vertical development is now complete.

Benoit Lassalle: We comment on overall grade mine and, obviously, after sequence, sometimes one goes up, and the other goes down, which is not quite relevant on a quarter per quarter basis; that's why we publish overall grade. We target towards the end of the year to have about 1,000 ton per day from the open pit and for a full ramp up for the open pit at 1,000 ton per day. We're now about 500 tons per day simply because we don't need more, but we can increase it to 1,000 tons per day when the new plant is up and running.

Justin Chan: That's a great update.

Justin Chan: And on this or mine that's quarter, what was the split between open pit and underground, and could you give us the grades between the two if you have that data available? We comment on overall grade overall grade mine and obviously after sequence sometimes one goes out the other one goes down, which is not quite relevant on a quarter per quarter. That's why we publish overall grade. We target towards the end of the year to have about 1,000 ton per day from the open pit and for full ramp up for full ramp up for the open pit at 1,000 ton per day.

Speaker Change: Thanks, that's a great update. On the Ore Mine this quarter, what was the split between open pit and underground, and could you give us the grades between the two if you have that data available?

Speaker Change: We comment on overall grade, overall grade mine, and obviously as per sequence, sometimes one goes up, the other one goes down, which is not quite relevant on a quarter per quarter. That's why we publish overall grade.

Benoit La Salle: I'm going to page 12 on Bumazin. Bumadjin is a cornerstone asset of Aya. Through drilling, we've really shown a beautiful right now 5 km structure. As I indicated, we're going to be drilling 120,000 meters there. But through field work, so we've done the drilling in this quarter. We've done 27,000 meters in this quarter, 42 after two quarters. So by, you know, substraction, there's 80,000 meters to come in age two. We've seen results.

Speaker Change: Um

Speaker Change: We target towards the end of the year to have about 1,000 tons per day from the open pit and for a full ramp up for the open pit at 1,000 tons per day. We're now about 500 tons per day simply because we don't need more, but we can increase it to a thousand tons per day when the new plant is up and running.

Benoit La Salle: We're now about 500 ton per day simply because we don't need more, but we can increase it to a thousand ton per day when the new plant is up and running.

Benoit La Salle: Gotcha, and roughly where do you—I mean I think the guidance implies a fairly big step up in grade and in the second half as well as times. I guess what are your thoughts on grades you're targeting for Q3 and 4, if you can give us any granularity there. It's just it's difficult because, as you know, with the deposit the way it is, it's, you know, when we hit these very high grade pockets, it goes very, very quickly into the hundreds and hundreds of gram per ton. But we're comfortable when we look at the model that globally we are going to meet our guidance.

Benoit Lassalle: I think the guidance implies a fairly big step up in grade in the second half as well as tons. I guess, what are your thoughts on the grades you're targeting for Q3 and Q4, if you can give us any granularity there? Justin, it's difficult because, as you know, with the deposit, the way it is, when we hit these very high-grade pockets, it goes very, very quickly into the hundreds and hundreds of grams per ton, but we're comfortable when we look at the model that globally, we are going to meet our guidance.

Speaker Change: I think the guidance implies a fairly big step up in grade in the second half as well as times. I guess, what are your thoughts on grades you're targeting for Q3 and Q4, if you can give us any granularity there?

Benoit La Salle: We're going to be seeing more results soon. It's really, it is ongoing. I believe we have nine drills there. It changes sometimes, but up to nine drill at the moment, turning and a lot of many results are coming. But through the field work, we've been mapping and doing the perception on the 18 new permits, because Aya Gold is to control the zone. We want to control the whole district, the Bumadjin district.

Speaker Change: Bye. Bye. Bye.

Speaker Change: It's just that it's difficult because as you know with the deposit, the way it is, it's

Speaker Change: You know, when we hit these very high-grade pockets, it goes very, very quickly into the hundreds and hundreds of grams per ton. But we're comfortable when we look at the model that globally we are going to meet.

Benoit Lassalle: So, if our guidance is around, let's say, we take the bottom part of the guidance at 215 and we're currently on average at 196 for Q2, and 184, that means we will be, you know, above the 215 for Q3 and Q4. Okay, perfect. Thanks. I appreciate that. And I guess given where your level of development is, you've got good flexibility. Well, anyway, I'll free up the line. Thanks very much for taking my question. Thanks, Justin.

Benoit La Salle: So we're still working on new permits, but we have 18. So we've completed the mapping, the high-perspectral. We're using all of the techniques that we know work. We've completed the mobile MT program, 13,000 lines that were, you know, flew over by with the helicopter. It's an extremely large and important program. It's a new program in Morocco, and it's giving us extremely, extremely interesting results that we'll show you in a minute. So it's our field work is continuing. Our drilling is continuing, and our consolidation is continuing. We've increased our land package by 188, 198 square kilometers, and our goal is to increase that considerably.

Benoit La Salle: So if our guidance is around let's say we take the bottom part of the guidance of 215 and we're currently now on average at 1.196 for Q2 184, that means we will be above the 215 for Q3 and Q4.

Speaker Change: our guidance so if

Speaker Change: Our guidance is around, let's say, we take the bottom part of the guidance at 215 and we're currently now on average at 196 for Q2, 184, that means we will be above the 215 for Q3 and Q4.

Justin Chan: Okay, perfect, thanks, appreciate that, and I guess given where your level development is, you've got good flexibility. Well, anyway, I'll free up the line. Thanks very much for taking my questions. Thanks Justin thank you. Thank you.

Speaker Change: Okay, perfect. Thanks. I appreciate that. And I guess given where your level of development is, you've got good flexibility. Well, anyway, I'll free up the line. Thanks very much for taking my questions.

Don Demarco: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Our next question comes from the line of Don DeMarco from National Bank Financial. Thank you, operator, and good morning. Good morning.

Justin Chan: Thank you. Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Justin Chan: Thanks, Justin. Thank you.

Speaker Change: Thank you. As a reminder to ask a question, please press star 1 1 on your telephone and wait for your name to be announced.

Benoit La Salle: A couple of results on page 13 on Bumadjin. Those are silver equivalent, a thousand gram per ton of silver equivalent on 13 meters. So you, we keep, you know, hitting, you recall that on page 18, you recall that the resource that was put out in March and the final report was filed 45 days later in Q2 that we were showing 352 million ounces of silver equivalent or 4.1 million ounces in gold equivalent.

Speaker Change: To withdraw your question, please press star 11 again.

Operator: Our next question comes from the line of Don DeMarco from National Bank Financial. Thank you, operator, and good morning, Dan Want. With the new conductive anomalies, Benoit, shall we assume that you embark on a multi-quarter or even multi-year drill program before you start thinking about a PEA? I mean, if those new anomalies prove out, it just seems really early to start thinking about what the throughput should be and things like that.

Speaker Change: Our next question comes from the line of Don DeMarco from National Bank Financial.

Benoit La Salle: Ben wants.

Benoit La Salle: Umuddin yeah. Umuddin's on my mind, so with the new conductive anomaly. Um, Ben, while shall we assume that you embark on a multi-quarter or even multi-year drill program before you start thinking about a PA. I mean, if those new anomalies prove out, it seems early to start thinking about what the throughput should be and things like that. At totally, you're absolutely right, Don. The drilling to the west could be a game changer. And if we are doing some work right now, we have a project manager that we've hired who is a top-of-the-line metallurgist and mining.

Don Demarco: Thank you, Operator, and good morning, Benoit.

Don Demarco: With the new conductive anomalies, Benoit, shall we assume that you embark on a multi-quarter or even multi-year drills program before you start thinking about a PEA?

Speaker Change: I mean, if those new anomalies prove out, it just seems early to start thinking about what the throughput should be and things like that.

Operator: You're absolutely right Don, the drilling to the west could be a game changer, and we are doing some work right now. We have a project manager that we've hired who is a top of the line metallurgist and mining and production man. So we are doing the test. We're doing some metallurgical tests.

Benoit La Salle: So that is just the beginning. It's on 4.2 kilometers. We've now extended it to five, and we are drilling it to extend that to the north and to the south. 41% of the resource was in fifth, 59 was deemed underground. We're continuing the drilling. We're, as I indicated, 60,000 meter is going on strike, and 60,000 is going on the parallel zone. Why?

Benoit Lassalle: Totally, you're absolutely right Don. The drilling to the west...

Speaker Change: It could be a game changer.

Speaker Change: And we are doing some work right now. We have a project manager that we've hired who is a top-of-the-line metallurgist and a production man. So we are doing the test. We're doing some metallurgical tests. We're doing all of that.

Benoit La Salle: And a production man, so we are doing the test; we're doing some metallurgical tests, we're doing all of that, but to finalize the flow sheet. The throughput the quantity it's a function of the size of the project so we are working on on on understanding all of that and getting ready. Now there are a lot of chapters that you don't need. You know the size on water management electricity tailing, so we start all of that. All these chapters have been started, but the actual PA based on size is going to be a very dynamic system because if we find what we believe is there on the website and on the south.

Benoit La Salle: Well, take a look at page 15. If you take a look at page 15, you see a portion of the geophysics. We did not give it all out. We're keeping a lot of information right now to ourselves, but you have, you see on the right inside the purple color. That's the main zone. That's what we've been drilling. And that's up to now five kilometer, but the signature is longer than that. And look to the west or to the left and side where you have that same purple color.

Don Demarco: We're doing all of that. But to finalize the flow sheet, the throughput, the quantity, it's a function of the size of the project.

Speaker Change: But, to finalize the flow sheet, the throughput, the quantity, it's a function of the size of the project. So, we are working on understanding all of that and getting ready. Now, there are a lot of chapters that you don't need, you know, the size on water management, electricity, tailings, so we've started all of that. All these chapters have been started.

Speaker Change: But the actual PEA base on size is going to be a very dynamic system because if we find what we believe is there on the west side and on the south,

Benoit La Salle: So it's a very large potential conductive anomaly, which is five kilometer west of Bumadzin, similar orientation, stronger intensity than the Bumadzin main zone, main conductor. It's a large system. It has conductors across east, west, similar to what we're seeing at Bumadzin. So obviously this is now at top priorities. So we are waiting for the inversion of the data from the geophysics. We will be getting that in August. We will be reviewing this.

Benoit Lassalle: So we are working on understanding all of that and getting ready. Now there are a lot of chapters that you don't need, you know, the size of water management, electricity, tailings. So we start all of that. All these chapters have been started.

Benoit La Salle: We haven't yet put that out, but on the south, of course, it's a different size project, so absolutely, based on drilling and based on results, the project will be dynamic. Ok, and can you comment on the existing infrastructure of Blue Madden with, for example, power, water, and its driving access between the current and the new conductive anomalies. So look at Blue Madden. It's it's you've you've we've been together to go there's 2000 meter above sea level. It's quite hilly. It's it's higher. Blue Madden is a lot, you know, it's a thousand meter. It's got an airport one hour away. You can drive from the airport, which you've got fly flights from Agadir all the time because it's the entrance to the tourist area where when you go on camel rides and on safaris. So it's it's quite good infrastructure. Power is not far away, so power will come from the grid. It's not a site yet, but it's going to be a site. It's it's not far away. There are villages around there, good hotels in the and I'll ask a fans maybe to come in after. So, of course, it's it's something that's pretty straightforward, but the issue is always in Morocco and in North Africa, it's water. So we have a team on water right now. Is it going to be reservoirs? Is it going to be from some of the villages that are around? So we're working on that. That's always, always you know, the the the pacing item. But at this point today, it's all about David and David, you know, putting in the drills and increasing the size of the resource. And I've had you want to add something on the infrastructure? No? Yeah, no, so that that's what it is done. Okay, okay, we'll thank you for that color and we'll organize a visit to to Bumadine in the fall with Alex and a lot of people want to come and see it and it's it's lucky you'll see the infrastructure is actually, I would say it's almost simpler than it's going there just because of the where it is and access to an airport very close by. Okay, okay, good to hear. And then one question on Sadoonder, when can you expect to reach mining rates of 2700 hundred tons per day? Is that going to be late this year or later with some reliance on the stockpiles? Our last cafe and we're sitting right across me and so so we take our time. We want to do it's right and and we started early to be able to have this flexibility right now. We have extra mining capacity and we're not we're not mining as fast as we could if we wanted because we have over 300,000 tons of or stockpiled. But to answer your question is somewhere in mid 2025 early 2025 depending on on mill throughput or mill ramp up. So we have this flexibility right now. Okay, thank you for that. Well, good luck with Q3 and that's all for me. Thank you Don. Thank you. Our next question comes in the line Mike Kozak from Cantor Fritz Sherald. Yeah, good morning Ben Wan team. Congrats on the solid quarter. Most of my question have been asked, but I just had one more. With the Zagoodar expansion almost done, how are you as a company thinking about debt reduction next year? Do you have it kind of a target debt repayment amount per quarter in mind or something like that? Just any guidance there would be appreciated. Thank you.

Speaker Change: We have not yet, you know, put that out, but on the South, of course, it's a different size project. So, absolutely, based on drilling and based on results, the project will be dynamic.

Benoit Lassalle: But the actual PA, based on size, is going to be a very dynamic system because if we find what we believe is there on the website and on the south, we haven't yet have not yet put that out. But on the south, of course, it's a different size project. So absolutely based on drilling and based on results, the project will be dynamic. Okay. And can you comment on the existing infrastructure at Boom Madden, like, for example, power, and water, and is there driving access between the current and the new conductive anomalies?

Speaker Change: Okay, and can you comment on the existing infrastructure at Boom Madden, like for example power, water, and is there driving access between the current and the new conductive anomalies?

Benoit La Salle: And as soon as we have the targets, David will be moving some of the drill rigs off the main zone. And as the program will be getting close to be completed, and we'll start drilling some additional targets to the west. And hopefully towards the end of the year or early next year to the south.

Benoit Lassalle: So look, at Boumeddine. We were together in Sgoundère. Sgoundère is 2,000 meters above sea level, it's quite hilly, it's higher. Boumeddine is 1,000 meters, it's got an airport one hour away. You can drive from the airport, which you've got flights from Agadir all the time because it's the entrance to the tourist area when you go on camel rides and on safari

Speaker Change: So look, at Boumeddine, we've been together in Sgoundère, Sgoundère is 2000m above sea level, it's quite hilly, it's higher. Boumeddine is a lot, you know, it's 1000m.

Benoit La Salle: So going to page 16 on our social values and on corporate social responsibility, a very good quarter, no zero lost time injuries, 3,700 hours of health and safety training. So it's a 30% increase year over year on our training. We have received certification of emergency response team. You are following us on LinkedIn. You see off in some videos on the new facilities that we have. It's a very dynamic process. Everybody is body into the concept of health and safety and it's coming along quite well.

Speaker Change: It's got an airport one hour away. You can drive from the airport, which you've got flights from Agadir all the time because it's the entrance to the tourist area when you go on camel rides and on safaris.

Benoit Lassalle: So it's quite good infrastructure. Power is not far away, so power will come from the grid. It's not at the site yet, but it's going to be at the site. It's not far away. There are villages around, there are good hotels, and I'll ask Rafael maybe to comment later. So of course, it's something that's pretty straightforward. The issue is always in Morocco and in North Africa with water.

Speaker Change: So, it's quite good infrastructure, power is not far away, so power will come from the grid. It's not at site yet, but it's going to be at site, it's not far away. There are villages around, there are good hotels, and I'll ask Rafael maybe to comment after. So, of course, it's something that's pretty straightforward. The issue is always in Morocco and in North Africa is water, so we have a team on water right now. Is it going to be reservoirs, is it going to be from some of the villages that are around? So, we're working on that. That's always the pacing item, but at this point today...

Benoit Lassalle: So we have a team on water right now. Is it going to be reservoirs? Is it going to be from some of the villages that are around?

Benoit La Salle: On the clean tech fund, we've met the milestones. We had, you know, milestone 1, 2 and 3 to me. We've met the milestone and in meeting the milestone, our capital costs on our death related to the TCFD is now moved or CTF Tronch is downed out to 1% cost of capital. And that was something that came with EBRD, it was very important. It's a $10 million Tronch that went from around number 10% down to 1%.

Benoit Lassalle: So we're working on that. That's always the pacing item, but at this point today, it's all about David and David putting in the drills and increasing the size of the resource. As I said, do you want to add something to the infrastructure? No.

Speaker Change: it's all about David and David, you know, putting in the drills and increasing the size of the resource.

Benoit Lassalle: Yeah, no, so that's what it is that's done. Okay, okay, we'll thank you for that. And we'll organize a visit to Boumeddine in the fall with Alex, and a lot of people want to come and see it, and it's, you know, the infrastructure is actually, I would say, almost simpler than there just because of where it is and access to an airport very close by. Okay.

Speaker Change: Raphael, did you want to add something on the infrastructure? No.

Speaker Change: Yeah, no, so that's what it is that done.

Benoit La Salle: And with the local communities, well, we're extremely involved as, you know, education. We're, you know, helping with school supplies, equipment and all that. Environmental day, we celebrated that, woman's day, we celebrated that with them. And we are, you know, we have a health program where we have, you know, clinics that we have for the villages around. And we have also a livelihood projects, which is gardens, vegetable and saffron, because the area is very well known for the saffron culture.

Speaker Change: [inaudible]

Speaker Change: And we'll organize a visit to Boumeddine in the fall with Alex, and a lot of people want to come and see it. And it's, like you'll see, the infrastructure is actually, I would say, almost simpler than Sgoundère, just because of where it is, and access to an airport very close by.

Raphael Boudoin: When do you expect to reach mining rates of 2700 tons per day? Is that going to be late this year or later with some reliance on the stockpile? I'll ask Raphael, who's sitting right across me.

Speaker Change: When do you expect to reach mining rates of 2700 tons per day? Is that going to be late this year or later with some reliance on the stockpiles?

Raphael Boudoin: So we take our time, we want to do it right, and we started early to be able to have this flexibility. Right now, we have extra mining capacity, and we're not mining as fast as we could if we wanted because we have over 300,000 tons of ore stockpiled. But to answer your question, it's somewhere in mid-2025 or early 2025, depending on milk throughput or milk ramp-up.

Benoit La Salle: So as a summary of where we are and what we have is the drill program is ongoing. At Bumadzin, the in freeze drill program is ongoing at 40,000 meters. Bumadzin is 120,000 meters. So as a group, we're going to be at 160,000 meters of drilling. So very, very, you know, large program, completely funded. The 2007 ton per day plant, which is the first, the, the two plants that we have plus the new plant is on time and on budget.

Speaker Change: I'll ask Rafael who's sitting right across me. So we take our time, we want to do it right and we started early to be able to have this flexibility. Right now we have extra mining capacity and we're not...

Rafael: We're not mining as fast as we could if we wanted, because we have over 300,000 tons of ore stockpiled, but to answer your question, it's somewhere in mid-2025.

Don Demarco: So we have this flexibility right now. Okay, thank you for that. Well, good luck with Q3, and that's all from me. Thank you, Don. Thank you. Our next question comes from Mike Kozak from Cantor Fitzgerald. Yeah, good morning, Ben Wan team. Congratulations on the solid quarter. Most of my questions have already been asked, but I just had one more.

Speaker Change: Early 2025, mid 2025, depending on on mil throughput or mil ramp up. So we have this flexibility right now.

Speaker Change: Okay, thank you for that. Well, good luck with Q3 and that's all from me.

Benoit La Salle: We are in commissioning and we expect commercial production in Q4 of 2024. And on the ESG front, well, again, as I said, we keep going through these EBRD due diligence that where we do extremely well. And we are happy to say that we are fully funded. So as a company, we have 100 million in the bank, the project's built. The, there's still some payables there. We still have, you know, some payables.

Don: Thank you, Don.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Mike Kozak from Cantor Fitzgerald.

Mike Kozak: With the Zagunder expansion almost done, how are you as a company thinking about debt reduction next year? Do you have kind of a target debt repayment amount per quarter in mind or something like that? Just any guidance that would be appreciated.

Mike Kozak: Good morning, Benoit and team. Congrats on the solid quarter. Most of my questions have been asked, but I just had one more.

Mike Kozak: with the Zegunder expansion almost done.

Mike Kozak: How are you as a company thinking about debt reduction next year? Do you have a target debt repayment amount per quarter in mind or something like that? Any guidance there would be appreciated.

Benoit La Salle: Well, that's a very good question, and I'm going to not turn it over. It depends on David's demand on drilling. It's for us drilling is the most important value creation, and so far with 94,000 meters at Bumazin we found 352 million ounces of silver equivalent or 4.1 million out of the gold equivalent. You know what? And David's on the line. I shouldn't say this, but when David is showing us things, this is I want to drill this; for us, that's the top priority. EBRD is extremely flexible. We have a payback program over four years starting in 2026, and they're extremely flexible.

Benoit Lassalle: Thank you. Well, that's a very good question, and I'm not going to turn it over. It depends on David's demand for drilling. For us, drilling is the most important value creation, and so far, with 94,000 meters at Boumadine, we found 352 million ounces of silver equivalent or 4.1 million ounces of gold equivalent. EBRD is extremely flexible. We have a payback program over four years starting in 2026. And they're also extremely flexible.

Mike Kozak: Well, that's a very good question and I'm gonna not turn it over. It depends on David's demand on drilling.

Benoit La Salle: But if everything goes, you know, according to plan and, and our budgets are, our bill, you know, with low $20 silver, you know, our minimum cash balance, we will always be around $40, $50 million. So we are fully funded for now and for the future. The plants are, are operating the two plants extremely well. The third plant, we will know in Q4, but it's coming very, very quickly and very well. And the drilling is going extremely well.

Speaker Change: For us, drilling is the most important value creation, and so far, with 94,000 m at Boumadini, we found 352 million ounces of silver equivalent, or 4.1 million ounces of gold equivalent.

Speaker Change: You know what, and David's on the line and I shouldn't say this, but when David is showing us things and says, I want to drill this, for us, that's the top priority. EBRD is extremely flexible. We have a payback program over four years, starting in 2026.

Benoit La Salle: So that covers my presentation and the operator. I think we are ready for questions.

Benoit Lassalle: They come to sight. We are their star project in their new mining strategy. If we wanted to pay faster, we could; if we wanted to delay, we could not say we would delay, but they are, they are very happy with this project. And seriously, if that keeps coming up with discoveries such as Gundar, Gundar regional, Bumadzin, and, and, and Tiazid, the value of the drill and the cost of drilling is, you know, our cost of discovery last year was like 10 cents an ounce So there's, but yes, if we do have access to cash, it will be to pay down the debt. Obviously, but you know, it's a soft loan with the EBRD. It's extremely soft and comfortable.

Operator: Thank you. As a reminder to ask a question, please press store 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press store 1-1 again.

Benoit La Salle: They come to site. We are their star project in their new mining strategy. If we wanted to pay faster, we could; if we wanted to delay, we could not, that we would delay, but they are very happy with this project. And seriously, if David keeps coming up with discoveries, both as Gundar, Gundar Regional, Bumazin, and the value of the drill and the cost of drilling is, you know, our cost of discovery last year was like 10 cents an ounce of silver. So there's, but yes, if we do have access cash, it will be to pay down the debt, obviously. But, you know, it's a soft loan with the EBRD.

Speaker Change: and they're extremely flexible. They come to site, we are their star project in their new mining strategy.

Speaker Change: If we wanted to pay faster, we could. If we wanted to delay, we could. Not that we would delay, but they are very happy with this project. And seriously, if David keeps coming up with discoveries, both at Sgounder, Sgounder Regional, Beaumadin, and Tirzit,

Operator: Please, thereby, will we compile the Q&A roster?

Punit Singh: Our first question comes from the line of Punit Singh from 8 Capital. Hi, Ben Wan team. I wanted to ask a couple of questions on Buu Medin, first on the geophysics. Really positive to see that conductive anomaly to the west. I understand you're looking for those massive, sulfide bodies and cross-cutting features, but how will you vector in further before drilling? Could you run us through that, expand on some of those tools you were talking about, and why they're useful, and what exactly they tell you?

Speaker Change: The value of the drill, the cost of drilling is, you know, our cost of discovery last year was like 10 cents an ounce of silver.

Mike Kozak: They're very good and hence, you know, we're comfortable. But yes, with a $35, $40 silver and the production that we're going to get, we will probably have all the money in the world for David and be able to pay down the debt. Alright, good stuff. Let's let it put me all over her back.

Speaker Change: so there's uh but yes if we do have excess cash it will be to pay down the debt

Benoit La Salle: It's extremely soft. They're very good, and hence, you know, we're comfortable. But yes, with a $35, $40 silver and the production that we're going to get, we'll probably have all the money in the world for David and to be able to pay down the debt. All right. Good stuff.

Speaker Change: Obviously, but you know, it's a soft glow name with the EBRD. It's extremely soft. They're very

Punit Singh: And if you can also just repeat, I think you mentioned it, but when you expect to drill that area to the west, thanks. Okay, well, we need to have that on the call, so that means you want to comment on the geophysics and on the spectral, and when do you expect to bring the drills over to the west? I, Punit, I'll try to answer that question. Yes, the geophysics is very spectacular.

Speaker Change: Good and hence, you know, we're comfortable. But yes with a $35-$40 silver and the production that we're going to get we'll probably have all the money in the world for David and And and to be able to pay down the debt

Benoit La Salle: That's it for me.

Benoit La Salle: I'll be right back. Thank you. Thanks, bye. Thank you.

Mike Kozak: Thanks, Mike. Thank you. One moment for our next question. Our next question comes from the line of Stephen Sook from CFO. Hi guys, most of my questions have been answered. I just had one on cost structure.

Speaker Change: All right, good stuff. That's it for me. I'll revert back. Thank you.

Mike Kozak: One moment for our next question. Our next question comes from the line of Steven Suke from Steve Full. Hi, guys. Most of my questions have been answered to you. I just had one on cost structure. Now that you kind of ramped up or largely ramped up underground, have a good handle on the open pit mining, you know, how we're kind of unit cost tracking versus your expectations and maybe versus the study. I know inflation in Morocco has been very low. So I think, you know, it looks like it's potential to be there, but it's wondering what you're seeing day-to-day and how you're thinking about that going forward.

Speaker Change: Thanks, Mike.

Speaker Change: Thank you. One moment for our next

Punit Singh: I fully agree with you. What we are waiting, we start getting the final results from the company that did the survey is all the inversions. So right now we do have the magnetics, we do have the surface response and different layers from the electromagnetic, the magnetotellerics, but what we want to see before doing a drill program is a full inversion to really narrow the potential conductive corridors.

Speaker Change: Our next question comes from the line of Steven Suk from STIFO.

Stephen Sook: Now that you're kind of ramped up or largely ramped up underground, have a good handle on the open pit mining, how are unit costs tracking versus your expectations and maybe versus the study? I know inflation in Morocco has been very low, so I think it looks like there's potential to beat there. I'm just wondering what you're seeing day to day and how you're thinking about that going forward. Thanks. Yes, so on Open Pit specifically, it's a contract miner that we use, and so far, you know, it's been exactly as expected both in terms of drilling blasts and in terms of haulage from the pit down the valley and back up to the mountains. So it's, honestly, we're quite happy, and I think we've mentioned that in the NDNA. We're very happy with our contract for the performance and the cost; there's no surprise. Perfect, that's great to hear.

Steven Suk: Hi guys, most of my questions have been answered to. I just had one on cost structure, now that you're kind of ramped up or you know largely ramped up underground, have a good handle on the open pit mining, you know how we're kind of unit cost tracking.

Speaker Change: versus your expectations and maybe versus the study. I know inflation in Morocco has been very low so I think you know it looks like it's potential to beat there but just wondering what you're seeing day to day and how you're thinking about that going forward. Thanks.

Benoit La Salle: Thanks. Yeah.

Benoit La Salle: So to better allocate the nutrients and to have a more accurate drilling plan, we expect to receive those deliverables by the end of August, so then it's a matter of building the drill program and bringing drills there, so most likely end of September, the beginning of October, around that time we should be able to start a drilling campaign there. Other tools that we have and use is the eye perspectives. So the survey we've completed this year, we already have all the layers, so it allows us to really map the alteration created by hydro-termilism and or other features like dikes around the property, so that's a great tool to help us locate targets.

Benoit La Salle: So on open pit specifically, it's a contract minor that we use. And so far, you know, it's been exactly as expected in both in terms of drilling glass in the terms of college, from the pit to down the valley and back up to the other mountain. So it's exactly; honestly, we were quite happy. And I think we mentioned that in the MD&A. We're very happy with our contractor, the performance, and the cost. There's no surprises. Perfect. No, that's great to hear. I know the expanded capacity will really have a notable positive impact on the cost structure and margin overall.

Speaker Change: Yeah, so on OpenPITS specifically, it's a contract miner that we use.

Speaker Change: And so far, you know, it's been exactly as expected in both in terms of drilling blasts and in terms of haulage from the pit to down the valley and back up to the mountains. So it's exactly, honestly, we're quite happy and I think we've mentioned that in the NDNA. We're very happy with our contract for the performance and the cost, there's no surprises.

Stephen Sook: I know the expanded capacity will really have a... Notable positive impact on the cost structure and margin overall, looking forward to that inflection point in the second half of the year. That's it for me.

Speaker Change: Perfect. That's great to hear. I know the expanded capacity will really have a notable positive impact on the cost structure and margin overall. Looking forward to that inflection point in the second half of the year. That's it for me. Thanks.

Benoit La Salle: So looking forward to that inflection point in a second half of the year.

Benoit La Salle: That's it for me. Thanks. Thank you. Yeah. Thank you, Steven. And as you said, the emphasis that the inflation in Morocco has been contained and the value of the jiham is, you know, devaluated just a little bit, not much. So you see it in our construction cost when you look at us coming through with 2022 capex numbers that, you know, we are able to build it on time and on budget. It says a lot about the capacity of the construction capacity in Morocco. Thank you.

Stephen Sook: Thank you. Yeah, thank you, Stephen. And as you said, inflation in Morocco has been contained, and the value of the dirham has, you know, devalued just a little bit, not much.

Speaker Change: Thank you. Yeah, thank you Steven and as you said the there has been the inflation in Morocco has been

Benoit La Salle: And on top of that we have some detailed mapping on the ground, lots of graphs, lots of geochemistry data. So it's a matter of all putting all those data together and come up with the best drill program for Q3, end of Q3 beginning of Q4 this year. Okay, sounds good, sounds like it'd be well timed with the higher production in Q4 first results, so that would be good to see. Had one last question on the main trend at Bumadine and the survey was showing more anomalies at depth there, but will the bulk of the program be focused on targets closer to surface like it was before or how are you thinking about that split?

Speaker Change: contained and the value of the dirham is you know devaluated just a little bit not much

Benoit Lassalle: So, you see it in our construction costs; when you look at us coming through with 2022 capex numbers that, you know, we are able to build it on time and on budget. It says a lot about the construction capacity in Morocco. Thank you. At this time, I would now like to turn the conference back over to Benoit LaSalle for closing remarks. Well, thank you so much.

Speaker Change: So, you see it in our construction costs. When you look at us coming through with 2022 CAPEX numbers that we are able to build it on time and on budget, it says a lot about the construction capacity in Morocco.

Benoit La Salle: At this time, I would like to turn the conference back over to Benoit Lasau for closing remarks. Thank you so much. Thank you all for attending. It was a good quarter heading into a very interesting second half of the year with the commissioning ongoing. Keep watching our little videos. It will show you what we're doing and how we're doing it, and heading into the commercial production in Q4 of 2024. What's also very interesting is the fact that we have 300,000 ton on the Rumpad. That's like extremely important for a smooth ramp up. It's all there, so it's been mined.

Speaker Change: Thank you. At this time I would now like to turn the conference back over to Benoit LaSalle for closing remarks.

Benoit Lassalle: Thank you all for attending. It was a good quarter, heading into a very interesting second half of the year, with commissioning ongoing. Keep watching our little videos; they will show you what we're doing and how we're doing it, and heading into commercial production in Q4 of 2024. What's also very interesting is the fact that we have 300,000 tons on the Rumpad. That's extremely important for a smooth ramp-up, and it's all there, so it's been mined.

Benoit LaSalle: Well, thank you so much. Thank you all for attending. It was a good quarter heading into a very interesting second half of the year with the commissioning ongoing. Keep watching our little videos. It will show you what we're doing and how we're doing it.

Benoit La Salle: Well, we have the 60,000 meters that is already planned and well advanced like at the end of the quarter we were at 42,000 meter if I recall. Right now today we're at 55,000 meter completed. So the main trend will remove the program as it was so it was mostly to extend the strike length. But we did reserve few holes to go target at depth also at the Bumadden and see the big geophysical anomaly.

Speaker Change: and heading into the commercial production in Q4 of 2024. What's also very interesting is the fact that we have 300,000 ton on the Rumpad.

Benoit La Salle: So as soon as we have the inversion for that tool, we will give it a try so later in Q4 and the rest of the more regional program if you want of 60,000, the idea was to go and test different targets. So to see what's one there, we have a big program completed the south on some north east west structures. We will just allocate some of those targets, especially the north 70 and north 30 structures will allocate the the meterage for the western geophysical anomaly.

Benoit LaSalle: That's, that's like...

Speaker Change: extremely important for a smooth ramp up and it's all there. So it's been mined. So when we look at the mining rate and the fact that we've been mining a thousand two hundred ton a day and including feeding the two plants we've been able to stockpile 300,000 ton, it just tells you that we do have as Ralph said the capacity to grow and we have also the capacity to slow it down if we have to which is what we've done.

Benoit Lassalle: So when we look at the mining rate and the fact that we've been mining 1,200 tons a day, and including feeding the two plants, we've been able to stockpile 300,000 tons, it just tells you that we do have, as Ralph said, the capacity to grow, and we also have the capacity to slow it down if we have to, which is what we did.

Benoit La Salle: When we look at the mining rate and the fact that we've been mining at 1,200 ton a day, and including feeding the two plants, we've been able to stockpile 300,000 ton. It just tells you that we do have, as Ralph said, the capacity to grow, and we have also the capacity to slow it down if we have to, which is what we've done. You have a very well oil machine, which is giving us 96% availability, and the third plant coming live now, and will be in commercial production in Q4. On the operating side, it's going extremely well.

Benoit Lassalle: So you have a very well-oiled machine, which is giving us 96% availability, and the third plant is coming online now and will be in commercial production in Q4. So on the operating side, it's going extremely well. On the exploration side, what can I say? 160,000 meters of drilling in Morocco with a very good team of geologists that have made some big discoveries for AYA, so that will be a very, very good year.

Ralph: So, you have a very well-oiled machine, which is...

Benoit La Salle: It's always a matter of prioritizing the target and with this geophysical response, we believe that it might be more significant than the small cross cutting structures. But again, lots of those structures will test this year and there's a lot more coming for 2025 as well as there's plenty of geophysical target and lots of nice things we're seeing on the ground. Okay, thanks David and good luck. Sounds like you got a lot to do, but that's good to stay busy. Thanks. Thank you.

Speaker Change: giving us 96% availability and the third plant is coming live now and will be in commercial production in Q4. So on the operating side, it's going extremely well.

Benoit La Salle: On the exploration side, what can I say, 160,000 meters of drilling. In Morocco, with a very good team of geos that have made some big discoveries for Ayah, so that will be a very, very good year. On the geopolitical front, Morocco, now that we have all the issues all over the world, Morocco is fantastic. They are now being recognized as one of the top mining jurisdictions, investment jurisdictions in the world. Their EV strategy is working out. They have many companies investing billion dollars to the north in the EV strategy, and Ayah is the key player with management on the mining front.

Operator: One moment for our next question.

Speaker Change: On the exploration side, it's, what can I say, 160,000 meters of drilling.

Speaker Change: in Morocco with a very good team of GEOs that have made some big discoveries for Aya. So that will be a very, very good year.

Benoit Lassalle: On the geopolitical front, Morocco, now that we have all the issues all over the world, Morocco is fantastic. They are now being recognized as one of the top mining jurisdictions and investment jurisdictions in the world. Their EV strategy is working out.

Speaker Change: On the geopolitical front, Morocco, now that we have all the issues all over the world, Morocco is fantastic.

Justin Chan: Our next question comes from the line of Justin Chan from SCP Resource Finance.

Speaker Change: They are, you know, now being recognized as one of the top mining jurisdiction, investment jurisdiction in the world.

Benoit La Salle: Hi guys, congratulations on getting to where it is and another good quarter. A couple of questions just on perhaps the path forward and where you are now. On the vertical development, could you give us a sense of what's left to do? Is it on the ventilator or material handling or what's left on that and how does that impact your ramp up rates? Maybe is the first question? Sure, happy, happy comment on that.

Speaker Change: their EV strategy is working out, they have...

Speaker Change: Many companies investing billions of dollars to the North.

Speaker Change: in their EV strategy and Aya is the key player with Manajem.

Benoit Lassalle: They have many companies investing billions of dollars to the north in their EV strategy, and AYA is the key player with Manajem on the mining front. They are organizing a conference, a Morocco mining conference, in December from the 3rd to the 5th in Marrakech. I'm inviting all of you to come and see us at the booth. It will be very interesting. So Morocco is coming through as a very good mining jurisdiction. We are there. We have many things going on for us, and H2 will be very, very interesting.

Speaker Change: the mining front. They are organizing a conference, a Morocco mining conference in December from the 3rd to the 5th.

Speaker Change: in Marrakech. I'm inviting all of you to come and see us at the booth. It will be very interesting. So Morocco is coming through as a very good mining jurisdiction.

Benoit La Salle: This completion rate was on July 30th, so at the end of July and we were still working on one last ventilation raise for the sub levels and that raises now complete. So you can expect a hundred percent on the on next quarter on the vertical development. So all all vent raise are completed and we have one or shoot and one waste shoots that are also completed and we are finalizing to install the civil work, civil work with them online. But as we speak, all vertical development is now complete.

Benoit Lassalle: So thank you for being a shareholder. Thank you for being our analyst and being interested in Morocco, in AYA, and the work that we do. We will talk to you in November at the Q3 call, and that will be from the mine site as we will be having our board meeting at the mine site in November of 2024. Thank you, all of you. Have a great summer, and we'll see you at the conferences starting at Beaver Creek. This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: We are there, we have many things going on for us.

Benoit La Salle: Thank you for being a shareholder. Thank you for being our analyst and being interested in Morocco in Ayah and the work that we do.

Benoit La Salle: Okay, perfect. Thanks. That's a great update.

Speaker Change: and HQ will be very very interesting. So thank you for being a shareholder, thank you for being our analyst.

Benoit La Salle: We will talk to you in November at the Q3 call, and that will be from the mine site as we will be having our board meeting at the mine site in November of 2024. Thank you, all of you.

Speaker Change: and being interested in Morocco, in Aya, and the work that we do. We will talk to you in November at the Q3 call, and that will be from the mine site, as we will be having our board meeting at the mine site in November of 2024.

Benoit La Salle: I have a great summer, and we will see you in the conferences starting at Beaver Creek.

Speaker Change: Thank you all of you have a great summer and we'll see you in the in the conferences starting at Beaver Creek.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Benoit La Salle: And on this or mine that's quarter, what was the split between open pit and underground and could you give us the grades between the two if you have that data available? We comment on overall grade overall grade mine and obviously after sequence sometimes one goes out the other one goes down, which is not quite relevant on a quarter per quarter. That's why we we publish overall grade. We target towards the end of the year to have about 1,000 ton per day from the open pit and for full ramp up for full ramp up for the open pit at 1,000 ton per day.

Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.

Benoit La Salle: We're now about 500 ton per day simply because we don't need more, but we can increase it to a thousand ton per day when when the new plant is up and running. Gotcha and roughly where do you I mean I think the guidance implies a fairly big step up in grade and in the second half as well as times I guess what are your thoughts on on grades you're targeting for Q3 and 4 if you can give us any granularity there.

Benoit La Salle: It's just it's difficult because as you know with the deposit the way it is it's it's you know when we hit these very high grade pockets it goes very very quickly into the hundreds and hundreds of gram per ton but we're comfortable when we look at the model that globally we are going to meet our guidance. So if our guidance is around let's say we take the bottom part of the guidance of 215 and we're currently now on average at 1.196 for Q2 184 that means we will be above the 215 for Q3 and Q4.

Justin Chan: Okay perfect thanks appreciate that and I guess given where your level development is you've got good flexibility well anyway I'll free up the line thanks very much for taking my questions. Thanks Justin thank you. Thank you.

Operator: As a reminder to ask a question please press star 11 on your telephone and wait for your name to be announced to withdraw your question please press star 11 again.

Don Demarco: Our next question comes from the line of Don DeMarco from National Bank Financial. Thank you operator and good morning. Good morning.

Benoit La Salle: Ben want. Umuddin yeah. Umuddin's on my mind so with the new conductive anomaly. Um Ben while shall we assume that you embark on a multi quarter or even multi year drill program before you start thinking about a PA. I mean if those new anomalies prove out it seems early to start thinking about what the throughput should be and things like that. At totally you're absolutely right Don the drilling to the west could be a game changer.

Benoit La Salle: And if we are doing some work right now we have a project manager that we've hired who is a top of the line metallurgist and mining. And a production man so we are doing the test we're doing some metallurgical tests we're doing all of that but to finalize the flow sheet. The throughput the quantity it's a function of the size of the project so we are working on on on understanding all of that and getting ready now there are a lot of chapters that you don't need.

Benoit La Salle: You know the size on water management electricity tailing so we start all of that all these chapters have been started but the actual PA based on size is going to be a very dynamic system because if we find what we believe is there on on the website and on the south. We haven't yet put that out but on the south of course it's a different size project so absolutely based on drilling and based on on results the project will be dynamic.

Benoit La Salle: Ok and can you comment on the existing infrastructure of Blue Madden with for example power water and it's a driving access between the current and the new conductive anomalies. So look at Blue Madden it's it's you've you've we've been together to to go there's 2000 meter above sea level it's quite hilly it's it's it's higher Blue Madden is a lot you know it's a thousand meter it's got an airport one hour away you can drive from the airport which you've got fly flights from Agadir all the time because it's the entrance to the the tourist area where when you go on camel rides and on safaris so it's it's quite good infrastructure power is not far away so power will come from the grid it's not a site yet but it's going to be a site it's it's not far away there there's villages around there good hotels in the and I'll ask a fans maybe to come in after so so of course it's it's it's something that's pretty straightforward but the issue is always in Morocco and in North Africa it's water so we have a team on water right now is it going to be reservoirs is it going to be from some of the villages that are around so we're working on that that's always always you know the the the the pacing item but at this point today it's all about David and David you know putting in the drills and increasing the size of of the resource and I've had you want to add something on the infrastructure no yeah no so that that's what it is done okay okay we'll thank you for that color and we'll organize a visit to to Bumadine in the fall with Alex and a lot of people want to come and see it and it's it's lucky you'll see the infrastructure is actually I would say it's almost simpler than it's going there just because of the where it is and access to an airport very close by okay okay good to hear and then one question on Sadoonder when can you expect to reach mining rates of 2700 hundred tons per day is that going to be late this year or later with some reliance on the stockpiles our last cafe and we're sitting right across me and so so we take our time we want to do it's right and and we started early to be able to have this flexibility right now we have extra mining capacity and we're not we're not mining as fast as we could if we wanted because we have over 300,000 tons of or stockpiled but to answer your question is somewhere in mid 2025 early 2025 depending on on mill throughput or mill ramp up so we have this flexibility right now okay thank you for that well good luck with Q3 and that's all for me thank you Don thank you our next question comes in the line Mike Kozak from Cantor Fritz Sherald yeah good morning Ben Wan team congrats on the solid quarter most of my question have been asked but I just had one more with with the Zagoodar expansion almost done how are you as a company thinking about debt reduction next year do you have it kind of a target debt repayment amount per quarter in mind or something like that just any guidance there would be appreciated thank you Thank you.

Benoit La Salle: Well, that's a very good question and I'm going to not turn it over. It depends on David's demand on drilling. It's for us drilling is the most important value creation and so far with 94,000 meters at Bumazin we found 352 million ounces of silver equivalent or 4.1 million out of the gold equivalent. You know what? And David's on the line, I shouldn't say this, but when David is showing us things, this is I want to drill this, for us that's the top priority.

Benoit La Salle: EBRD is extremely flexible. We have a payback program over four years starting in 2026 and they're extremely flexible. They come to site. We are their star project in their new mining strategy. If we wanted to pay faster, we could, if we wanted to delay, we could not that we would delay, but they are very happy with this project. And seriously, if David keeps coming up with discoveries, both as Gundar, Gundar Regional, Bumazin, and the value of the drill and the cost of drilling is, you know, our cost of discovery last year was like 10 cents an ounce of silver.

Benoit La Salle: So there's but yes, if we do have access cash, it will be to pay down the debt obviously, but you know, it's a soft loan with the EBRD. It's extremely soft. They're very good and hence, you know, we're comfortable, but yes, with a $35, $40 silver and the production that we're going to get, we'll probably have all the money in the world for David and to be able to pay down the debt.

Benoit La Salle: All right. Good stuff. That's it for me. I'll be right back. Thank you. Thanks, bye. Thank you. One moment for our next question.

Mike Kozak: Our next question comes from the line of Steven Suke from Steve Full. Hi, guys. Most of my questions have been answered to you.

Benoit La Salle: I just had one on cost structure. Now that you kind of ramped up or largely ramped up underground, have a good handle on the open pit mining, you know, how we're kind of unit cost tracking versus your expectations and maybe versus the study. I know inflation in Morocco has been very low. So I think, you know, it looks like it's potential to be there, but it's wondering what you're seeing day-to-day and how you're thinking about that going forward.

Benoit La Salle: Thanks. Yeah. So on open pit specifically, it's a contract minor that we use. And so far, you know, it's been exactly as expected in both in terms of drilling glass in the terms of college from the pit to down the valley and back up to the other mountain. So it's exactly, honestly, we were quite happy. And I think we mentioned that in the MD&A. We're very happy with our contractor, the performance and the cost.

Benoit La Salle: There's no surprises. Perfect. No, that's great to hear. I know the expanded capacity will really have a notable positive impact on the cost structure and margin overall. So looking forward to that that inflection point in a second half of the year.

Benoit La Salle: That's it for me. Thanks. Thank you. Yeah. Thank you, Steven. And as you said, the emphasis that the inflation in Morocco has been contained and the value of the jiham is, you know, devaluated just a little bit not much. So you see it in our construction cost when you look at us coming through with 2022 capex numbers that, you know, we are able to build it on time and on budget. It says a lot about the capacity of the construction capacity in Morocco.

Benoit La Salle: Thank you.

Benoit La Salle: At this time, I would like to turn the conference back over to Benoit Lasau for closing remarks. Thank you so much. Thank you all for attending. It was a good quarter heading into a very interesting second half of the year with the commissioning ongoing. Keep watching our little videos. It will show you what we're doing and how we're doing it, and heading into the commercial production in Q4 of 2024. What's also very interesting is the fact that we have 300,000 ton on the Rumpad.

Benoit La Salle: That's like extremely important for a smooth ramp up. It's all there, so it's been mined. When we look at the mining rate and the fact that we've been mining at 1,200 ton a day, and including feeding the two plants, we've been able to stockpile 300,000 ton. It just tells you that we do have, as Ralph said, the capacity to grow, and we have also the capacity to slow it down if we have to, which is what we've done.

Benoit La Salle: You have a very well oil machine, which is giving us 96% availability, and the third plant coming live now, and will be in commercial production in Q4. On the operating side, it's going extremely well. On the exploration side, what can I say, 160,000 meters of drilling. In Morocco, with a very good team of geos that have made some big discoveries for Ayah, so that will be a very, very good year. On the geopolitical front, Morocco, now that we have all the issues all over the world, Morocco is fantastic.

Benoit La Salle: They are now being recognized as one of the top mining jurisdiction, investment jurisdiction in the world. Their EV strategy is working out. They have many companies investing billion dollars to the north in the EV strategy, and Ayah is the key player with management on the mining front. Thank you for being a shareholder. Thank you for being our analyst and being interested in Morocco in Ayah and the work that we do. We will talk to you in November at the Q3 call, and that will be from the mine site as we will be having our board meeting at the mine site in November of 2024. Thank you all of you. I have a great summer, and we will see you in the conferences starting at Beaver Creek.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.