Q3 2024 Calibre Mining Corp Earnings Call

Good morning, and welcome to the caliber mining Q3 and year to date 2024 production and Valentine Goldmine update conference call.

Operator: Good morning, and welcome to the Calibre Mining Q3 and year-to-date, 2024 production and Valentine Goldmine update conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

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Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two.

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Operator: Please note, this event is being recorded.

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Ryan King: I would now like to turn the conference over to Ryan King.

Speaker Change: I would now like to turn the conference over to Ryan King. Please go ahead.

Ryan King: Please go ahead. Thank you, operator.

Ryan King: Thank you operator.

Ryan King: Good morning, everyone, and thank you for taking the time to join the call this morning. Before we commence, I'd like to direct everyone to the forward-looking statements on slide two. Our remarks and answers to your questions today may contain forward-looking information about the company's future performance. Although management believes that our forward-looking statements are based on fair and reasonable assumptions, actual results may turn out to be different from these forward-looking statements. For a complete discussion of the risks, uncertainties, and factors which may lead to actual operating and financial results being different from the estimates contained in our forward-looking statements, please refer to the previous quarters' MD&A and consolidated financial statements available on our website as well as on Cedar Plus.

Ryan King: Good morning, everyone and thank you for taking the time to join the call. This morning.

Ryan King: Before we commence I'd like to direct everyone to the forward looking statements on slide two.

Ryan King: Our remarks and answers to your questions today may contain forward looking information about the company's future performance.

Although management believes that our forward looking statements are based on fair and reasonable assumptions actual results may turn out to be different from these forward looking statements.

Ryan King: For a complete discussion of the risks uncertainties and factors, which may lead to actual operating and financial results being different from the estimates contained in our forward looking statements. Please refer to the previous quarter's MD&A and consolidated financial statements available on our website as well as on SEDAR plus.

Ryan King: And finally, all figures are in U S dollars unless otherwise stated.

Ryan King: And finally, all figures are in US dollars unless otherwise stated.

Ryan King: Present today with me on the call are Darren Hall, President and Chief Executive Officer; David Schumer, SVP and Chief Operating Officer; Daniella Demetroff, SVP and Chief Financial Officer; and Tom Gallow, Senior Vice President Growth. We will be providing comments on our third quarter and year-to-date 2024 production in preliminary cost results and an update on the Valentine Gold Mine, after which, as mentioned, will be happy to take questions. The slide deck we will be referencing is available on our website at CalderMining.com. Under the events section, you can also click on the webcast to join the live presentation.

Ryan King: Present today with me on the call are Darren Hall, President and Chief Executive Officer.

Ryan King: David Schumer, SVP and Chief operating officer.

Ryan King: And yellow dimitroff, SVP and Chief Financial Officer.

Ryan King: And Tom Gallo Senior Vice President growth.

Ryan King: We will be providing comments on our third quarter and year to date 2020 for production and preliminary cost results and an update on the Valentine goldmine after which as mentioned will be happy to take questions.

Ryan King: The slide deck, we will be referencing is available on our website at caliber mining dot com under the events section you can also placed on the webcast who joined the live presentation.

Darren Hall: And with that, I'll turn the call over to Darren.

Speaker Change: And with that I'll turn the call over to Darren.

Darren Hall: Thanks, Ryan. Moving to slide three.

Darren Hall: Thanks, Ryan moving to slide three.

Darren Hall: Good morning, and thank you for taking the time to join the call. I'd like to take this opportunity to welcome Dave Schumer to the team as Caliber's Chief Operating Officer. Dave and I work together at Newmont, and I've seen firsthand his operational capabilities and confident that with him leading our operations, the company will be well positioned to optimize and grow production. Dave has been an echo to his joining, where his positive contributions are already evident, and from where he is taking the call this morning. The company delivered 46,000, 46,000, 766 ounces for the quarter and 166,000 ounces here today.

Darren Hall: Morning, and thank you for taking the time to join the call.

Darren Hall: Want to take this opportunity to welcome Dave Cramer to the same caliber as Chief operating officer, David and I worked together at Newmont and I've seen firsthand his operational capabilities and complement that with him leading our operations the company will be well positioned to optimize and grow production.

Darren Hall: David has been a Nicaragua since joining where he's positive contributions are already evident in from where he is taking the call. This morning.

Darren Hall: The company delivered 46000, 46076 ounces for the quarter and 166000 ounces year to date.

Darren Hall: Q3 and year-to-date gold production has been negatively impacted by two primary issues. Le Monde Norte Eurcum Pet Mine sequencing, which was previously discussed in Q2. While there are no technical issues, and total material movement is positive with respect to budget, mining progress deviated from plan, which has resulted in delays and delivering all grades. This issue has been addressed with several people changes, including reallocations of and adding additional resources to the team. Secondly, historical artisanal mining activities on the initial benches of the Volcan open pit, which commenced in July, were higher than anticipated. Four-year production from Volcan is expected to be approximately 20,000 ounces below budget due to this historical depletion.

Darren Hall: Q3, and year to date gold production has been negatively impacted by two primary issues.

Darren Hall: Demand North I open pit mine sequencing, which was previously discussed in Q2.

Darren Hall: While there were no technical issues and total material movement is positive with respect to budget morning progress deviated from plan, which has resulted in delays in delivering all grades. This issue has been addressed with several people changes, including Reallocations old and adding additional resources to the team.

Darren Hall: Secondly, historical artisanal mining activities on the initial benches is the Vulcano open pit, which commenced in July well higher than anticipated full.

Darren Hall: Full year production from Vulcan is expected to be approximately 20000 ounces below budget due to this historical depletion.

Darren Hall: It's important to note, there are no current artisanal activities. We have mined through the impacted area. All tons and grade are aligning with expectations, and the deposit model has been confirmed by infield drilling. Following a full-sum review, consulted a Q4 production as expected to be 70,000 to 80,000 ounces. Driven principally by Nicaragua was increased to 60 to 70,000 ounces. This improvement is a result of significantly increased all-tons at higher grades as we catch up to planned face positions. After increasing Q4 porridge to Libertad Mill by 30%, over Q3 to 3,000 tons per day, we anticipate a stockpile increase of approximately 30,000 ounces of limon, which will be available for processing in 2025.

Darren Hall: It's important to note there are no current artisanal activities, we have mined through the impacted area.

Well what tonnes and grade are aligning with expectations and the deposit model has been confirmed by infill drilling.

Darren Hall: Following a fulsome review consolidated Q4 production is expected to be 70 to 80000 ounces driven principally by Nicaragua's increase to 60 to 70000 ounces.

Darren Hall: This improvement is a result of significantly increased ore tonnes at higher grades as we catch up to plan to face positions.

Darren Hall: After increasing Q4 haulage to Libertad mill about 30% over Q3 to 33000 tons per day, we anticipate a softball increase of approximately 30000 ounces have been on which will be available for processing in 2025.

Darren Hall: Reflecting year to date actual and planned Q4 activities now 'twenty 'twenty four midpoint production guidance has been revised down approximately 18%.

Darren Hall: Reflecting year-to-date actual and playing Q4 activities, our 2024 midpoint production guidance has been revised down approximately 18%. With the year-to-date and forecast year, total spend being consistent with budget, total cash costs and all in sustaining costs reflect revised production. Given a number of internal changes within Nicaragua, I'm bolstering the team with the addition of the Monagua-based Stephen McCackie as VP Technical Services, and with Dave Schumer's focus on presence in Nicaragua for the balance of the year, I'm confident in the team's ability to deliver into revised guidance.

Darren Hall: With year to date and forecast Yeah total spend base consistent with budget total cash costs and all in sustaining costs reflect revised production.

Given a number of internal changes within Nicaragua, and bolstering the team with the addition of the Managua by Stupid Mcafee as VP technical services and with Dave Seamus focus from prison in Nicaragua for the balance of the year I'm confident in the team's ability to deliver into our revised guidance.

Darren Hall: Moving to slide four and Valentine.

Darren Hall: Moving to slide four and Valentine, the team of Valentine has made significant progress with the construction completion at 81% at the end of September and remains on track to deliver first goal during Q2 2025. Some recent construction highlights include the tailings management facility is complete and ready to receive water, primary pressure installation is well advanced and overlaying construction, overlaying conveyor construction has commenced, mills and CIL tank each construction is well advanced, pre-commissioning is underway, and we now have over 215,000 tonnes of mill feed in stockpile. However, it hasn't all been smooth sailing, as we have realised and, more importantly, anticipate cost pressures and therefore revising our initial project capital to 744 million Canadian.

Speaker Change: The team at peloton has made significant progress with the construction completion of 91% at the end of September and remain on track to deliver first gold during Q2 2025.

Speaker Change: Some recent construction highlights include the tailings management facility is complete and ready to receive water primary crusher installation is well advanced and overlaying construction overland conveyor construction has commenced mills.

Speaker Change: Mills and CIL tankage construction is well advanced pre commissioning is underway and we now have over 215000 tons of mill feed in Stockholm.

However, it hasn't all been smooth sailing as we have realized that more importantly anticipate cost pressures and are therefore, revising our initial project capital.

Two 744 million Canadian.

Darren Hall: This reflects a 91 million Canadian increase, inclusive of 20 million Canadian incantigency. Approximately 25 million Canadian of the increase can be attributable to increases in freight and logistical costs, additional settlement controls, concrete and associated civil works, spare parts, and power distribution. Whilst we have many very good business partners, disappointingly, the majority of the increase can be attributable to productivity performance issues from a primary contractor, which has resulted in mobilising additional manpower, temporary accommodation and associated services, all of which will ensure overall project schedule is maintained to deliver first goal in future 2025. The identified contractor performance gaps have been addressed by augmenting leadership roles and increasing the capacity of our owners' team with the necessary experience and expertise required to manage the contractors' performance and safely complete the build on schedule.

Speaker Change: This reflects a $91 million Canadian increase inclusive of 20 million Canadian and contingency.

Speaker Change: Approximately 25 million Canadians the increase can be attributable to increases in freight and logistical costs.

Speaker Change: Additional sediment controls concrete and associated civil works spare parts and power distribution.

Speaker Change: Whilst we have many very good business partners disappointingly. The majority of the increase can be attributable to productivity performance issues from a primary contractor, which has resulted in mobilizing additional manpower.

Speaker Change: Temporary combination and associated services, all of which will ensure.

Overall project schedule is maintained to deliver first gold in Q2 2025.

Speaker Change: The identified contractor performance gaps are being addressed by augmenting leadership roles and increasing the capacity about one of his team with the necessary experience and expertise required to manage the contract this performance and safely complete the build on schedule.

Darren Hall: The Valentine gold mine and surrounding property offers an impressive 5 million ounce resource base and numerous discovery opportunities from a prospective array of exploration targets. Our 130,000 metadural program will take us beyond the original explored 6 km stretch of the 32 km long shear zone of this green fields region. I'm extremely optimistic about the snooping and upside potential as we advance technical studies and review phase 2 through input increase opportunity. I encourage their options, which may present even higher returns than the feasibility study envisaged. With approximately 300 million Canadian in cash and 170,197 million Canadian cost to complete, the Valentine build remains fully funded and on track for first gold during Q2 2025.

The peloton gold mine in surrounding property.

Speaker Change: Offers an impressive 5 million ounce resource space and numerous discovery opportunities from our perspective array of exploration targets.

Speaker Change: 130000 meter drill program will take us beyond the original explored six kilometers straight to the 32 kilometer long shear zone of this greenfield to origin.

Speaker Change: I am extremely optimistic about the significant upside potential as we bounce technical studies and review phase two throughput increase opportunity I'm encouraged to their options, which might present, even higher returns in the feasibility study envisaged.

Speaker Change: With approximately 300 million Canadian in cash and 170, <unk> hundred 97 million Canadian cost to complete the Valentine build remains fully funded and on track to Sysco during Q2 2025.

Darren Hall: The addition of Valentine to our poor polio assets will establish Calibre as a quality mid-tier producer in the Americas, providing a compelling re-rate opportunity for all shareholders.

Speaker Change: The addition of Valentine to our portfolio of assets will establish caliber as a quality mid tier producer in the Americas, providing a compelling rewrite opportunity for all shareholders.

Darren Hall: With that, we're happy to take questions on how possible back to the Alberta.

Speaker Change: With that we're happy to take questions I'll now pass it back to the operator.

Yeah.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

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Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster.

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Speaker Change: At this time, we will pause momentarily to assemble our roster.

Don Demarco: And our first question today comes from Don DeMarco with National Bank Financial. Please go ahead. Thank you, operator, and good morning, Darin and team. So, first question, maybe we'll just start off with the Q3 operations. So, I see you're expecting at Volcan; you're expecting more or in the top benches. Witness have been de-risked by some RC drilling ahead of the mining.

Speaker Change: And our first question today comes from Don Demarco with National Bank Financial. Please go ahead.

Don Demarco: Thank you operator, and good morning, Darren and team.

So first question maybe to start off with the Q3 operations.

So I see your expect at Balkan, you're expecting more or in the top benches Ah witness had been derisked by some RC drilling ahead of the mining.

Darren Hall: Yes, and thanks for the questions.

Speaker Change: Yeah, Don Thanks for thanks for the questions.

Darren Hall: At Volcan, there has been historical artisanal activity. There were allowances made when the plan was generated. But the team had underestimated the amount of material that had been taken from those artisanal activities in the historical sense. So, I don't think that's necessarily drilling it. In those first few benches, would have been arrested given the kind of the random nature of it. You couldn't have got holes close enough together. I think it was really that we just overestimated what we would get, and consequently underperformed with respect to expectations.

Speaker Change: At Vulcan has been historical artisanal activity the wearer allowances made when the plan was generated but the team had underestimated the hum.

Speaker Change: The Mount of materials that are being taken from those out to all the activities and the historical sense. So.

Speaker Change: Yeah, I don't think that necessarily drilling it in those first few benches would've derisked just given the kind of the random nature. I mean, you couldn't have got called close enough together I think it was really that we just overestimated, what we would get and.

Speaker Change: Consequently, underperformed with respect to expectations.

Darren Hall: Okay, but now you're through those few top benches, and you're feeling more confident about the order that's to be mined in Q4. Absolutely, there is no evidence of artisanal activities in the benches we're currently mining in. And we have done drilling below us to ensure that there are no activities ahead of us. And the model is performing consistent with expectations from the positive model.

Speaker Change: Okay, but now you're through those few top benches, and you're feeling more confident about the audits to be mined in Q4.

Speaker Change: Absolutely.

Speaker Change: There is no evidence of a seasonal activities in the benches. We're currently mining it and we have done drilling below is to ensure that there are no <unk>.

Speaker Change: The activities ahead of us and the model is performing consistent with expectations from the from the deposit model.

Speaker Change: Okay.

Don Demarco: Next question, over to Valentine. The site tour was just six weeks ago. Valentine showed well the management scene component. These issues with the contractor challenges and what that did just come about in the last few weeks. Maybe you could just add a little more color on that. I think we saw signs of that. I think on the side, we actually highlighted some of it. We made great progress in terms of physically how things looked. If you remember back to the camp, we were starting to put in some additional temporary facilities. We had indications of things, but it was very early in.

Then next question over to Valentine.

Speaker Change: Site tours, just six weeks ago, and you know Valentine's show well the management team content. So did these issues with the the contractor challenges and what that did they just come about in the last few weeks. If so like a maybe you could just add a little more color on that.

Speaker Change: No I think we saw signs of that and I think on the site visit Don we actually highlighted some of it I mean, we've made great progress in terms of physically how things looked but if you remember back to the camp, where we're starting to put in some additional temporary facilities as we had indications of things, but it was very early and we haven't actually seen that.

Darren Hall: We hadn't actually seen the tension from a spend perspective. I think we've kind of seen the genesis of it around that time. That kind of late August, early September. Then during the month of September, we've kind of seen, well, bottom, they're not performing according to our plan as a lump sum contractor. We said, "let's get ahead of this." Let's make the adjustments, bring in the resources, and allow for additional shifts, additional people so we can deliver into that Q2 production commitment. Okay.

Speaker Change: Tension from a spend perspective, so I think we've kind of seen that the genesis of it around that time right that kind of late August early September and then during the month of September we've kind of say well hold them, they're not performing according to our plan as a lump sum contract. So we said, let's get ahead of this.

Speaker Change: Let's make the adjustments, bringing the resources.

Speaker Change: And allow for additional shifts the additional people. So we can deliver into that Q2 production commitments.

Okay.

Don Demarco: Well, fortunately, your balance sheets and good shape are not able to weather this, but of course, you have the potential milk expansion at Valentine's in the works.

Okay, well Fortunately your balance sheet is in good shape and able to weather this but of course you have the.

Speaker Change: Central mill expansion at Ballantyne. It are in the works with this additional capex for development potentially have any implications on the timeline or your thoughts with regard to that expansion.

Darren Hall: Would this additional CAPEX for development potentially have any implications on the timeline or your thoughts with regard to that expansion? No, I think so, Don. As we look at it now, we're excited by the potential we see there. As we've discussed, we've looked at some optionality studies, which show potential to be able to increase beyond what was envisaged in the feasibility study. But the majority of the next year's spend in that space, so with a decision point later in the year, would really be about more detailed engineering, which is not significant from a cost perspective.

Speaker Change: No I don't think so John.

Speaker Change: And as we look at it now we're excited by the potential we see there as we've discussed we've you know we've looked at some Optionality studies, which show if you get a potential to be able to increase beyond what was envisaged in the feasibility study.

Speaker Change: The majority of the let's say the next year's spend in that space. So we get to a decision point later in the year would really be about more detailed engineering, which is not significant from a cost perspective. So you know the addition of that or they've gone to that doesn't doesn't stress our short term cash requirements for Valentine, nor does it distract the team from.

Darren Hall: So, you know, the addition of that or the advancing that doesn't stress our short-term cash requirements for Valentine's, nor does it distract the team from delivering into expectations. It's more of a work that we've done offsite by engineers.

Speaker Change: Delivering into expectations, it's more work that we've done Offsite Boy engineers.

Don Demarco: Okay.

Speaker Change: Okay well. Thank you that's all for me and good luck with Q4.

Don Demarco: Well, thank you.

Don Demarco: That's all for me, and good luck with Q4.

Ingrid Rico: Thank you very much. Our next question comes from Ingrid Rico with Steve Full. Please go ahead. Good morning, and thank you. There and I'm going to follow up on some of Don's questions, I think, but the two main points. So, just on Valentine's, excuse me.

Speaker Change: Thank you very much.

Speaker Change: And our next question comes from Ingrid Rico with Stifel. Please go ahead.

Speaker Change: Good morning, and thank you Darrin I'm I'm going to follow up on some questions I think that the two main.

Speaker Change: <unk> point.

Speaker Change: So just on that one.

Speaker Change: Excuse me one you know the 30% increase given underestimation of material, perhaps if you can touch a little bit more on that in terms of where is this for phase one or is that for the scope of things too like what is that related to them.

Ingrid Rico: What, you know, the 30% increase given underestimation of material, perhaps if you can touch a little bit more on that in terms of where is this for phase one or is it for the scope of phase two? Like, where is that related to and how comfortable are you with the new estimate now that you've done the review on all the sort of items? Yep, no, no, thanks. Thanks, Ingrid, and appreciate the question. It's approximately probably $20, $25 million with a Canadian of increases that can be attributable to, I think if you call it that, so increases in prey, logistical costs, some additional sediment controls.

Speaker Change: And how how comfortable are you or with a with a new estimate now that you've done the VEB.

Speaker Change: All the items.

Speaker Change: Yes, no no. Thanks, Thanks, Ingrid and appreciate the question.

Yeah. This is approximately probably 20 $25 million with a Canadian of Ing.

Speaker Change: Increases that can be attributable to.

If you call it that so increases in price logistical costs.

Speaker Change: Some additional sediment control. So we think about those as kind of scope changes well cost to deliver into the anticipated scope and if we take that in isolation. If we kind of divorce households from the contractor performance that would have been within the error of estimate of the total billed Bryan so.

Darren Hall: So we think about those as kind of scope changes, or costs to deliver into the anticipated scope. And if we take that in isolation, if we kind of divorce ourselves from the contract of performance, you know, that would have been within the error of estimate of the total built, right? So, no, I'm comfortable with. I think that, you know, when we came out in May with the updated guidance for the project, the focus was at that point looking at, you know, picking up a build, mid-construction, was to ensure that the pieces that were going to be required for the build were adequately provisioned, and I believe that for all intents and purposes of we have some minor tension here with the things I just mentioned, but in the grand scheme of things, I think we've got it really, really close.

Speaker Change: No I'm I'm comfortable with I think that when we came out in my with the updated guidance for the project. The focus was at that point looking at you know.

Speaker Change: Picking up a build mid construction.

Speaker Change: Structure was to ensure that the pieces that were going to be required for the bill we're adequately provisioned and I believe that for all intents and purposes. We have some main intention here with the things I just mentioned, but in the Grand scheme of things I think we got a really really close.

Darren Hall: The oversight here was really about the assumed productivity of the business partners related to the structural mechanical and piping, and that's what we've seen the tension enduring September, and that's why we're getting ahead of this from a forward looking perspective. So, again, a long-winded answer to your question, but if I come back, no, we're comfortable in. The costs associated with the things, and we're now making adequate provision to ensure that we have the buffer to be able to bolt all those things together and deliver into schedule.

Over side it was really about the assumed productivity of.

Speaker Change: The business partners related to the structural mechanical and piping and that's what we've seen the tension and during September and that's why we're getting ahead of this from a forward looking perspective, so again, a long winded answer to your question, but if I come back no we're comfortable in the.

Speaker Change: The costs associated with the things and we're now making adequate provisions to ensure that we have the buffer to be able to have both of those things together and deliver into schedule.

Ingrid Rico: Great, and just to keep it on Valentine, so Q2 expected production has not changed.

Speaker Change: Great and just to keep it on the on Valentine So cute.

Our expected production has not changed.

Darren Hall: Any sense? I know you haven't provided guidance on what you expect for Valentine in 2025, but any sense or any indications that you can give us on what's that expected production next year? Yeah, no, we haven't provided any updates, but I guess we come back to what was in the feasibility study. The feasibility study I think in year one had, and it was a full year in the feasibility, call it 200,000 ounces. So if we say, hey, we're going to have first gold in Q2, allow for a ramp up, it's reasonable to expect that it's effectively like six months of production.

Any sense I know you Havent provided guidance on what you expect for for Valentine's Day, 2025, but any signs that or any indications that you can give us on what that expected production next year.

Speaker Change: Yeah, No we haven't provided any updates, but I guess is that if we come back to what was in the feasibility study. The feasibility study I think in year, one and it was a full year and the feasibility right call. It 200000 ounces. So if we we say hey, we're going to have first gold in Q to allow for a ramp up it's reasonable to expect.

Speaker Change: So this is effectively like six months of production so.

Darren Hall: So, again, if I was sitting on your side of the table looking at this, I wouldn't feel uncomfortable with something about a half of what would have been anticipated in the first year.

Speaker Change: Again, if I was sitting on your side of the table looking at this I wouldn't I wouldn't feel uncomfortable with something about a half of what would have been anticipated in the first year.

Ingrid Rico: And if I can just move on quickly on Nick Aragua, the way I see it is, I guess, sort of a reconciliation issue, but as we look forward to 2025, you know, Nick Aragua has had, I would say, a spotless performance year over year, this being a bit of a setback. But any sort of additional sort of drilling that you expect to do to have confidence on 2025, or how do you look at, you know, the performance from Nick Aragua going forward? Yeah, thanks, and it's a good point. I guess I'll second grade into two different issues.

Speaker Change: And if I can just move on quickly on Nicaragua, and the way I see it is I guess, that's sort of a reconciliation issue, but as we look forward to 2025 mm.

Speaker Change: Nicaragua has had.

Speaker Change: I'd say its spotless performance our year over year, there's been a bit of a setback, but any sort of additional sort of drilling that you expect to do do you have confidence on 2020, five where or how do we how do you look at them.

Speaker Change: Performance from Nicaragua going forward.

Speaker Change: Yeah, Thanks, and good and it's a good point, there's I guess about six segregated into two different issues. We talk about reconciliation and performance of bulk Con you know that.

Darren Hall: We talk about reconciliation and performance of Volcan. You know, that is a very isolated issue related to those historical ASM activities. The model as defined was reliable; what was missed was how much was taken from the model in terms of historical activities. So, you know, when we apply that learning forward, where are we sourcing from previously mined entities in 2025, and there isn't any, right? You know, Volcan will continue to contribute in 2025, but given we're through those early impacts of that historical activity, I think we're good. The larger miss here in Nick Aragua was really about delays in presenting grade, predominantly from Limon, and those delays were associated with the technical issue that we're disgusting Q2.

That is a very isolated issue related to those historical ISR activities. The modal as defined was reliable what was missed was how much was taken from the model in terms of historical activities. So you know when we apply that learning food where are we sourcing from previously.

Speaker Change: Mind entities in 2025, and there isn't any right yeah, baucom, who can continue to contribute in 2025, but given with through those early impacts.

Speaker Change: That historical activity I think we're good.

Speaker Change: The larger mishear in Nicaragua was really about delays in presenting grade predominantly from the modem.

Speaker Change: And those delays were associated with the technical issue that we discussed in Q2.

Darren Hall: and that was the genesis of it, but the real issue was delivering into plan. So there was a good plan that was developed, but for reasons which we've corrected, people deviated from that plan, and so we didn't deliver the grade and the tons as expected. Now, as we've corrected that, we see a building and material being mined in Q4. Put it in perspective: the strip ratio in Q4 is 1.5 what it was in Q3, and the grade is higher, so we end up with a significant stockpile build on surface as a consequence of those initial delays.

Speaker Change: Right and that was the Genesis of it but the real issue was delivering into plan. So there was a good plan that was developed but for reasons, which we've been we've corrected people deviated from that plan and so we didn't deliver the great and the tons as expected and now as we correct.

Speaker Change: Did that we see a building an immaterial being mined in Q4 and put.

Speaker Change: Put it in perspective, the strip ratio in Q4 as one half what it was in Q3 and the grade is hot so we end up with a significant stockpile build on surface as a consequence of those initial delays so as we play forward to 2025.

Darren Hall: So you know as we play forward to 2025, yeah this truly is management dropping the ball, right? Is not following the plan, not putting in place for short interval controls that allow for delivery into and pivoting when conditions change.

Speaker Change: This truly is management dropping the bowl.

Speaker Change: It is not following the plan not putting in place a short interval controls that allow for.

Speaker Change: Delivery into and pivoting when conditions change.

Ingrid Rico: I understand.

Speaker Change: Understood.

Ingrid Rico: Thank you for that, Darren, and I'll put over the call to thanks Collar.

Speaker Change: Thank you for that Darren.

Speaker Change: I'll pass over the call to yeah. Thanks Colin.

Luke Bertosi: Thank you very much, and our next question comes from Luke Bertosi with Big TD Cohen. Please go ahead.

Speaker Change: Thank you very much.

Speaker Change: And our next question comes from Luke Bartosik with B T. D. Cohen. Please go ahead.

Okay.

Luke Bertosi: Hi Darren and team, most of my questions been answered, but I do have a follow-up on Volcan. So I believe Volcan was originally expected to contain around 160,000 ounces of gold, and can you give us some indication of the impact of the historical artisanal mining. Yeah, we'll take 20 off the top. Yeah, so Luke, thanks for the question. And again, so take 160, take 20 off the top. If we look forward at the model, I got Tom sitting tomorrow, right? So I'll ask, hey, is part of the model update do we anticipate any further changes?

Luke Bartosik: Hi, Darren and team.

Luke Bartosik: Most of my questions have been answered, but I do have a follow up on bulk and so I believe Vulcan was originally expected.

Luke Bartosik: Staying around 160000 ounce of gold.

Luke Bartosik: Can you give us some indication of the impact of the historical.

Speaker Change: There's no mining.

Speaker Change: Yes, it would take money off the top bigger.

Speaker Change: Yeah. So I'll, let you take thanks for the question and again, so type 116th take 20 off the top.

Speaker Change: If we look forward at the Motorola got Tom sitting to my right. So Alaska as part of the model update do we anticipate any further changes.

Darren Hall: No, not really, and that 160 Luke majority of that was considered to be inferred, so we don't typically convert 100% of that inferred. I think the mine plan going forward, internal not 43 101 spec, is somewhere between 100 and 115,000 ounces on the go forward 2025 forward. So you look at that 160, do a little bit of conversion on what the inferred would be at our typical conversion rate of 75%, lot 20 off the top, as Darren said, and you sort of kind of get into that number.

Speaker Change: No not really and not 160 look the majority of that was considered to be inferred. So we don't typically convert 100% of that in first I think the mine plan going forward internal not 43, 101 stack is somewhere between 105 and a 115000 ounces on a go forward.

Speaker Change: 25 forward. So you look at that 160, do a little bit of conversion on what the inferred would be at our typical conversion rate of 75% locked 20 off the top as Darin said then.

Speaker Change: And you sort of kind of get into that number.

Luke Bertosi: Yeah, awesome, thanks. And then I noticed in Q2 you guys threw down around 50 million dollars of restricted cash, but in Q3 you were only you only drew down 30 million. Can you give us some color on how let's expect to be drawn down through the remainder of the construction period. Yeah, at the end of Q2, I don't think we had 50 million of restrictor cash; it would have been higher than that. Sorry, I meant you guys drew down 50 million in Q2. Okay, but in Q2 you didn't have the draw down was less.

Speaker Change: Yeah awesome. Thanks.

Speaker Change: And then I noticed in Q2, you guys drew down around $50 million of restricted cash but in Q3, you were all needed you will need drew down $30 million can you give us some color on how that is expected to be drawn down through the remainder of the construction period.

Speaker Change: Yeah at the end of Q2, I don't think we had $50 million of restricted cash flow would have been higher than that.

Speaker Change: Okay.

Speaker Change: Sorry, I meant you guys drew down $50 million in Q2.

Yeah.

Speaker Change: Okay, but so you Daniela the drawdown was less.

Daniella Demetroff: So maybe I'll pass to Danny Eller in terms of where we're currently at, what we pulled in Q3, and what we anticipate going forward. Yeah, so just after the end of the second quarter in July, we drew down another 25 million. So, at the middle of office, we stood at a hundred million in restricted cash, and actually at the end of September, we stood at a hundred million in restricted cash. Following the end of the third quarter, on the beginning of October, we drew down another 25 million, so as we sit today, we're 75 million remaining in our. We were restricted to 25 million a month, so we intend on accessing the remainder of the 75 million in November, December, and January.

Speaker Change: So maybe I'll pass to Daniela in terms of where we're currently at what we've put in Q3 and what we anticipate going forward, yes. So.

Just after the end of the second quarter in July we.

Speaker Change: We drew down another 25 million. So I don't know about that we stood at 100 million in restricted cash and actually at the end of September we stood at $109 in restricted cash.

Speaker Change: Following the end of the third quarter and so at the beginning of October we drew down another 25 million.

Speaker Change: As we said today or 75 million remaining in our debt proceeds account as restricted cash.

Speaker Change: We can we were restricted to $25 million a month.

Speaker Change: So we intend on accessing the remainder.

Speaker Change: The 75 million in November December and January.

Luke Bertosi: Perfect. Okay, I appreciate that. As long as everything's going to plan.

Perfect. Okay I appreciate that.

Speaker Change: Oh everything's going to plan.

Luke Bertosi: Yeah, I guess that's all the questions for me. Thanks, guys.

Speaker Change: Yes, I guess, that's all the questions from me thanks, guys.

Luke Bertosi: Appreciate it. Thank you.

Speaker Change: I appreciate it thank you.

Speaker Change: Yes.

Operator: Again, if you have a question, please press star, then one. We will now pause for just a moment as we pull for questions.

Speaker Change: And Ken if you have a question. Please press Star then one.

Speaker Change: We will now pause for just a moment as we poll for questions.

Operator: Seeing no further questions, this will conclude our question-and-answer session.

Speaker Change: Seeing no further questions. This will conclude our question and answer session I would like to turn the.

Darren Hall: I would like to turn the conference back over to Mr. Darren Hall for any closing remarks. Yeah, thanks, Operator. I'd like to firstly thank all of our shareholders for their continued support and your participation on the questions this morning.

The conference back over to Mr. Darin Hall for any closing remarks.

Darin Hall: Yeah, Thanks, operator, I'd like to firstly, thank all of our shareholders for their continued support and your participation on the with the questions. This morning as always Ryan on the entire leadership team are available. If you have any further questions and with that.

Darren Hall: As always, Ryan, I and the entire leadership team are available if you have any further questions. And with that, take care.

Darin Hall: Take care and be well and I'll pass it back to the operator.

Darren Hall: Be well, and I'll pass it back to the operator.

Operator: The conference is now concluded. Thank you for attending today's presentation.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: You may now disconnect. Thank you very much. Thank you.

Speaker Change: [music].