Q2 2025 Alamos Gold Inc Earnings Call

Scott Parsons: All participants, thank you for standing by. The conference is ready to begin. Good morning. I will now turn the call over to Scott Parsons, ALAMOS Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

This conference has been recorded.

Scott R.G. Parsons: Thank you, Patrick, and thanks to everybody for attending ALAMOS's second quarter 2025 conference call. In addition to myself, we have on the line today John McCluskey, President and Chief Executive Officer; Greg Fisher, Chief Financial Officer; and Luc Guimond, Chief Operating Officer. We will be referring to a presentation during the conference call that is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release, and MDNA, as well as the risk factors set out in our annual information form. Technical information in this presentation has been reviewed and approved by Chris Boswick, our Senior VP of Technical Services, and a qualified person.

All participants. Thank you for standing by the conference is ready to begin. Good morning, I'll note I will now turn the call over to Scott Parsons animals. Senior vice president of corporate development development and investor relations. Please go ahead.

Thank you Patrick. And thanks to everybody for attending. I'll almost the second quarter 2025 conference call. In addition to myself, we have on the line today, John McCluskey, president and chief executive officer. Greg Fischer Chief Financial financial officer and Lucy Mall Chief Operating Officer. We will be referring to a presentation during the conference call. That is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a q.

Q&A session.

As we will be making forward-looking statements during the call. Please refer to the cautionary notes included in the presentation news release and mdna as well as the risk factors set out in our annual information form.

Scott R.G. Parsons: Also, please bear in mind that all of the dollar amounts mentioned in this conference call are in US dollars unless otherwise noted. Now, John will provide you with an overview.

Technical information in this presentation has been reviewed and approved by Chris Boswick, our senior VP Technical Services and a qualified person. Also, please bear in mind that all of the dollar amounts mentioned in this conference call are in US Dollars unless otherwise noted

John McCluskey: Thank you very much, Scott. And good morning, everyone. Draw your attention to slide three. Second quarter production totaled 137,000 ounces, in line with quarterly guidance, and up 10% from the first quarter, reflecting stronger performances from all three operations. With a further increase in production expected in the second half of the year, we remain on track to meet our full-year production guidance. We've been providing guidance like this for a very long time. We take it very seriously. We put a lot of effort into coming up with these numbers, and we're very confident in our forecast. The stronger operational performance contributed to an 18% reduction in all in sustaining costs compared to the first quarter. Costs are expected to decline further in the second half of the year as production continues to increase, driven by higher grades and tons processed.

Now, John will provide you with an overview.

Thank you very much Scott.

And good morning, everyone.

Enjoy your attention to uh slide 3.

Second quarter production totaled 137,000 oz in line with quarterly guidance and up. 10% from the first quarter reflecting stronger performance from all 3 operations.

With a further increase in production expected in the second half of the year.

We remain on track.

To meet our full year production guidance.

We've been providing guidance like this for a very long time.

We take it very seriously. We put a lot of effort into coming up with these numbers.

And we're very confident in our forecast.

The stronger operational performance.

Contributed to an 18% reduction in all in sustaining costs.

John McCluskey: In mid-July, the Island Gold Mill was shut down with a higher grade underground ore now being processed within the larger and more productive Majino Mill. This transition will allow us to start realizing significant processing cost synergies at the Island Gold District for years to come. With the stronger production, lower costs, and higher gold prices, we realized record revenues and cash flow from operations. We also delivered strong free cash flow of $85 million while funding our growth projects and exploration programs. At current gold prices, we expect strong ongoing free cash flow while reinvesting in our high-return growth projects that will support further free cash flow growth. As a result of higher than budgeted share price compensation and royalty expense through the first half of the year and a slower start at Majino and Young Davidson, we are revising our 2025 cost guidance.

Compared to the first quarter costs are expected to decline further in the second half of the year, as production continues to increase driven by higher grades and tons processed.

In mid July, the island. Gold Mill was shut down with a higher grade underground or now being processed within the larger and more productive Maginot Mill.

This transition will allow.

start realizing significant processing cost synergies at the Allen gold district for years to come

With the stronger production, lower costs.

Higher gold prices, we realized record revenues and cash flow from operations. We also delivered strong free cash flow of 85 million, while funding our growth projects and expiration programs at current gold prices. We expect strong ongoing free cash flow while reinvesting in our high return. Growth projects that will support further free cash flow growth

John McCluskey: Full-year all in sustaining costs are expected to be 12% higher than our original guidance, with approximately 40% of that increase attributable to external factors. From a cost perspective, our first half performance was not reflective of our long-term track record of meeting or exceeding expectations, nor is it reflective of our strong outlook. We expect a significant improvement in both production and costs into the second half of the year. That trend of growing production and declining costs is expected to continue over the next several years, anchoring one of the strongest outlets in our sector. Turning to slide four, a key driver of that strong outlook is our expanding Island Gold District. During the quarter, we released the base case life of mine plan for the Island Gold District, integrating the Island Gold underground and Majino open pit operations.

As a result of higher than budgeted share price compensation and royalty, expense through the first half of the year and a slower start at Maginot and young Davidson we are revising. Our 2025 cost guidance.

Full year. All-in, sustaining costs are expected to be 12% higher than our original Guidance with approximately. 40% of that increase attributable to external factors,

From a cost perspective. Our first top performance was not reflective of our long-term track record of meeting or exceeding. Expectations nor is it reflective of our strong Outlook.

we expect a significant Improvement in both production and costs into the second half of the year that will

Uh, that trend of growing production and declining costs.

Expected to continue over the next several years. Anchoring 1 of the strongest outlets in our sector.

Key driver of that strong Outlook is our expanding Island goal District.

John McCluskey: As outlined in the study, the Island Gold District is expected to become one of the largest, lowest cost, and most profitable gold mines in Canada. The base case life of mine plan was prepared using mineral reserves only and outlined average annual production of 411,000 ounces at mine site all in sustaining costs of $915 per ounce over the initial 12 years. As a base case, this is a very attractive operation, and we believe there's a significant upside to come. Turning to slide five, an expansion study is currently underway and is expected to outline an ever larger and more profitable operation. Our base case plan is based on combining milling rates of 12,400 tons per day. Within the expansion study, we expect to be evaluating an expansion to 20,000 tons per day, which we expect to support higher mining rates from the underground and the open pit.

During the quarter, we released the base case life of mine plan for the Island Gold district, integrating the Island Gold underground and Maginot open pit operations.

As outlined in the study, the island, gold district is expected to become 1 of the largest lowest cost, and most profitable gold mines in Canada. The base case, life of mine plan was prepared using mineral reserves only

And outlined average annual production of 411,000 Oz at my site. All in sustaining costs of 915 per ounce over the initial 12 years at a, as a base case, this is a very attractive operation and we believe there's a significant upside to come.

Turning to slide 5.

An expansion study is currently underway and is expected to outline an Ever larger and more profitable operation. Our base case plan is based on combining Milling rates of 12,400 tons per day.

John McCluskey: Additionally, through ongoing infill drilling, we expect to incorporate a larger mineral reserve through the conversion of a significant portion of the 5 million ounces of resources not incorporated into the base case. The expansion study remains on track for completion during the fourth quarter of this year. There is also longer-term growth potential beyond the expansion study and is expected to outline support significant increase if near mine and regional exploration. Late in the second quarter, we provided an exploration update that demonstrated the potential across the Island Gold District. Recent drilling continues to extend high-grade mineralization across the Island Gold Deposit, as well as within several hanging wall and footwall structures. Turning to slide six, the regional exploration program has also been successful in intersecting high-grade gold mineralization in proximity to past producing mines, including Klein Pick and Edwards Mines.

Within the expansion study, we expect uh, to be evaluating an expansion to 20,000 tons per day, which we expect to support higher mining rates from the underground and the open pit.

Additionally through ongoing infill drilling, we expect to incorporate a larger mineral Reserve through the conversion of a significant portion of the 5 million ounces of resources. Not incorporated into the base case.

The expansion study remains on track for completion during the fourth quarter of this year.

There is also longer-term growth potential beyond the expansion study.

And is expected to out the outline support significant increase.

If near mine and Regional expiration.

Late in the second quarter, we provided an exploration update that demonstrated that the potential across the island Gold District.

Recent drilling continues to extend high-grade mineralization across the island gold deposit as well as within several hanging wall and footwall structures.

Turning to slide 6.

John McCluskey: Some of those highlights include drill holes grading 8 grams per ton over 21 meters, 19 grams per ton over 5 meters, and 56 grams per ton over 2 meters. The early results have been impressive, extending high-grade mineralization beyond the extent of historic mining. These targets are located within seven kilometers of the Majino Mill and represent opportunities for additional high-grade mill feed with a larger mill expansion. They also highlight the significant potential we see across our 60,000-hectare land package within the underexplored Michvakotin Greenstone Belt. Our portfolio of high-return projects supports one of the strongest growth profiles in the sector. We expect steady growth and declining costs over the next several years, driven by the completion of the phase three expansion.

The regional expiration program has also been successful in intersecting, high-grade, gold, mineralization in proximity to past producing mines, including client, pick, and Edward's Minds.

Some of those highlights include drill holes.

grading 8 grams per tonne over 21 M, 19 grams per tonne over 5 metres and 56 gram per tons over 2 meters,

the early results have been impressive, extending high-grade mineralization beyond the extent.

Historic mining, these targets are located within SE 7 kilometers of the Maginot Mill. And represent opportunities for additional high-grade mil feed with a larger Mill expansion.

The also highlight the significant potential we see across our 60,000 hectare land package.

Within the underground within the underexplored, Mitch botan greenstone belt.

Our portfolio of high return projects supports 1 of the strongest growth profiles in the sector.

John McCluskey: Towards the latter part of 2028, we expect Lynn Lake to take our consolidated production rate to over 900,000 ounces per year at well below industry average all in sustaining costs. Longer term, there's excellent potential to increase production to approximately 1 million ounces per year through a further expansion of the Island Gold District. We expect to outline this upside in the expansion study that we will release in the fourth quarter. Turning to slide five, pardon me, turning to slide eight, we expect strong ongoing free cash flow while funding this growth. Following the completion of the phase three plus expansion, we expect to generate even stronger levels of free cash flow starting next year. This growth is expected to continue with the completion of our PDA and Lynn Lake projects, such that at current gold prices, we expect our annual free cash flow to exceed $1 billion.

We expect steady growth and declining costs over the next several years driven by the completion of the phase 3 expansion.

Towards the latter part of 2028. We expect Lynn Lake.

to take our Consolidated production rate to over 900,000 Oz per year at well, below industry average, all in sustaining costs,

Longer term. There's excellent potential to increase production to approximately 1. Million ounces per year to further expansion of the island Gold District.

We expect to outline this upside in the e in the expansion study that we will release in the fourth quarter.

Turning to slide 5.

Pardon me turning to slide 8.

We expect strong ongoing free cash flow while funding this growth

Following the completion of the phase 3 plus expansion, we expect to generate even stronger levels of free cash flow starting next year.

This growth is expected to continue.

John McCluskey: I'll now turn the call over to our CFO, Greg Fisher, to review our financial performance. Thank you, John. On to slide nine, we sold approximately 135,000 ounces of the gold in the second quarter at an average realized price of $3,223 per ounce for record revenues of $438 million. The average realized price was below the London PM fixed price for the quarter, primarily as a result of delivering over 12,300 ounces into the gold prepayment facility based on a prepaid price of $2,524 per ounce. We will continue to deliver the same quarterly number of ounces into the facility until the obligation is completed by year-end. As a reminder, the prepaid facility was executed in July 2024 with the proceeds utilized to retire 180,000 ounces of forward sale contracts inherited from Argonaut Gold across 2024 and 2025, with an average price of $1,840 per ounce.

With the completion of our PDA and Lin Lake projects. Such that at current gold prices. We expect our annual free cash flow to exceed 1 billion.

I'll now turn the call over to our CFO. Greg Fischer to review our financial performance.

Thank you, John.

On to slide 9, we sold approximately 135,000 oz of gold. In the second quarter at an average realized price of 3,223 per ounce.

For record revenues of 438 million.

For 12300 Oz into the gold prepayment facility based on a prepaid price of 2,524 per ounce.

We will be continuing to deliver the same quarterly number of Oz into the facility until the obligation is completed by year end.

John McCluskey: Total cash cost of $1,075 per ounce and all in sustaining costs of $1,475 per ounce decreased 10% and 18% respectively from the first quarter. Costs are expected to trend lower through the remainder of the year as production increases, driven by higher grades and tons processed. Our recorded net earnings were $159 million in the second quarter, or 38 cents per share. This included $17 million of unrealized losses on commodity hedge derivatives, net of tax, $34 million of unrealized foreign exchange gains recorded within deferred taxes and foreign exchange loss, and other adjustments totaling $2 million. Excluding these items, our adjusted net earnings were $144 million, or 34 cents per share. Operating cash flow before changes in non-cash working capital was a record $233 million in the second quarter, or 55 cents per share.

As a reminder, the prepaid facility was executed in July 2024, with the proceeds, utilized to retire, 180,000 oz of forward, sale contracts inherited from Argonaut gold across 2024 and 2025 with an average price of 1,840 per ounce.

Total cash cost of 1,075 per ounce and all in sustaining costs of 1,475 per ounce, decreased, 10% and 18% respectively from the first quarter.

cost are expected to Trend lower through the remainder of the year, as production increases driven by higher grades and tons processed

Our recorded, net earnings were 159 million in the second quarter or 38 cents per share. This included 17 million of unrealized losses on commodity heads. Derivatives net of tax,

34 million of unrealized Foreign Exchange gains recorded within deferred taxes, and foreign exchange laws. And other adjustments. Totaling 2 million excluding, these items are adjusted. Net earnings were 144 million or 34 cents per share.

John McCluskey: Capital spending totaled $115 million and included $34 million of sustaining capital, $72 million of growth capital, and $10 million of capitalized exploration. Free cash flow for the quarter totaled $85 million, a significant increase from the first quarter, driven by strong contributions from all three operations. This included $55 million from the Mulattos District, $52 million from the Island Gold District, and a record $59 million at Young Davidson. Following the release of our first quarter results, we were active on our share buyback, repurchasing 400,000 shares at a cost of $10 million. Including our quarterly dividend of $11 million, we returned $21 million to shareholders in the quarter. Our cash balance at the end of the second quarter grew to $345 million, and combined with the undrawn balance on our credit facility, our total liquidity is $845 million.

Operating cash flow before. Changes in non-cash working capital was a record 233 million in the second quarter or 55 cents per share.

Capital spending totals, 115 million and included, 34 million of sustaining Capital, 72 million of growth capital, and 10 million of capitalized expiration.

Free castle for the quarter total 85 million, a significant increase from the first quarter driven by strong contributions from all 3 operations.

this includes 55 million from the mulatto District 52 million from the island gold district, and a record 59 million at Young Davidson

Following the release of our first quarter results, we are active on our share buyback, repurchasing 400,000 shares at a cost of 10 million.

Including our quarterly dividend of 11 million, we will return 21 million to shareholders in the quarter.

John McCluskey: With production increasing and costs decreasing through the remainder of the year, supporting strong ongoing free cash flow, we are well positioned to internally fund our growth plans. Moving to slide 10, as John outlined earlier on the call, we have increased our full-year cost guidance. This reflects higher than budgeted share-based compensation and royalty expense through the first half of the year, as well as a slower start to the year at Majino and Young Davidson. Full-year total cash costs are now expected to be between $975 and $1,025 per ounce, and all in sustaining costs between $1,400 and $1,450 per ounce. This represents a 12% increase in all in sustaining cost guidance, with approximately 40% of the increase attributable to external factors.

Our cash balance. At the end of the second quarter, grew to 345 million and combined with the undrawn balance. On our credit facility, our total liquidity is 845 million.

With production, increasing and cost. Decreasing through the remainder of the Year supporting strong ongoing free cash flow. We are well, positioned to internally fund our growth plans.

Moving the slide, 10 as John outlined earlier on the call we have increased our full year cost guidance. This reflects higher than budgeted share-based compensation and royalty, expense through the first half of the year as well as a slower start to the year at the Gino and young Davidson.

Full year. Total cash costs are now expected to be between 975 and 1,025 per ounce and all in sustaining costs between 1,400 and 1450 per ounce.

John McCluskey: This included the revaluation of previously issued share-based compensation, given the significant increase in our share price during the first half of the year, and higher royalty expenses given the sharply higher gold price. Consistent with our updated guidance, we expect a significant improvement in our costs in the second half of the year. We expect costs to continue to trend lower over the next several years, driven by low-cost production growth. I'll now turn the call over to our COO, Luc Guimond, to provide an overview of our operations.

This represents a 12% increase in on sustaining cost Guidance with approximately 40% of the increase attributable to external factors,

This included, the revaluation of the previously issued share base compensation given the significant increase in our share price during the first half of the year and higher royalty expenses given the sharply higher gold price.

Consistent, with our updated guidance. We expect a significant improvement in our costs in the second half of the year. We expect costs to continue to Trend lower over the next several years driven by low-cost production growth.

Scott R.G. Parsons: Thank you, Greg. Over to slide 11. Production from the Island Gold District totaled 64,400 ounces, a 9% increase over the first quarter, driven by higher combined milling rates from the Island Gold and Majino Mills. Production is expected to increase further through the remainder of the year, reflecting higher mining and processing rates. Island Gold delivered a strong quarter with both underground mining rates and grades in line with annual guidance. Majino's mining rates averaged 13,700 tons of ore per day in the quarter, a 16% increase over the previous quarter. Mining rates are expected to increase in the second half of the year to be consistent with annual guided levels of 14,800 tons per day. Costs declined slightly from the first quarter, with a more significant decrease expected in the second half of the year.

I'll now turn the call over to our coo, Luke gimal to provide an overview of our operations.

Thank you, Greg.

Over to slide 11 production from the island gold district totaled. 64,400 Oz a 9% increase over the first quarter driven by higher combined Milling rates from the island, gold, and Maginot Mills.

Production is expected to increase further through the remainder of the Year reflecting higher Mining and processing rates.

Island gold delivered a strong corner with both underground. Mining rates and grades in line with annual guidance.

The Gino's mining rate averaged 13,700 tons of ore per day in the quarter.

A 16% increase over the previous quarter.

Mining rates are expected to increase in the second half of the year to be consistent with annual guided levels of 14,800 tons per day.

Scott R.G. Parsons: This is expected to be driven by higher milling rates within the Majino Mill and increasing underground mining rates at Island Gold. Mine site free cash flow increased to $52 million, more than double the first quarter, an impressive performance given the ongoing reinvestment and growth through the phase three plus expansion and a significant exploration program. The Island Gold District remains well positioned to self-fund its expansion plans, with significant free cash flow growth expected from 2026 onwards. Moving to slide 12, the performance of the Majino Mill continued to improve during the quarter, with milling rates increasing 18% from the first quarter to average 8,500 tons per day. Following the installation of a redesigned liner in bulk configuration within the Sag Mill earlier this month, throughput rates have steadily improved to average approximately 9,500 tons per day in the second half of July.

Cost decline slightly from the first quarter with a more significant decrease expected in the second half of the year.

This is expected to be driven by higher Milling rates within the Maginot Mill and increasing underground mining rates at Island gold.

Given the ongoing reinvestment and growth through the phase 3 plus expansion and a significant expiration program.

The island gold district remains well positioned to sell Finance expansion. P plans.

with significant free cash flow, growth expected from 20126 onwards,

moving to slide 12.

Performance of the Maginot Mill continued to improve during the quarter with Milling rates, increasing 18% from the first quarter, average 8500 tons per day.

Following the installation of a redesigned liner in both configuration within the SAG Mill earlier this month.

Scott R.G. Parsons: We will remain on track to reach 11,200 tons per day later this quarter. Reflecting the improved performance of the Majino Mill, the Island Gold Mill was shut down mid-July, and underground ore is now being processed within the larger and more productive Majino Mill. Since the introduction of higher grade underground ore, the mill has performed well, with recoveries from the blended ore consistent with expectations. Moving to slide 13, the phase three plus expansion continues to progress well, with the shaft sink currently at a depth of 1,265 meters, representing 92% of its ultimate planned depth. The remainder of the shaft sink is on track for completion in the fourth quarter of this year.

2 print rates have steadily improved to average approximately 9,500 tons per day in the second half of July.

We will remain on track to reach 11,200 tons per day later. This quarter,

Reflecting the improved performance of the Maginot Mill. The island. Go Mill. Was shut down mid July and underground. Ore is now being processed.

Within the larger and more productive Maginot Mill.

Since the introduction of higher grade underground, ore, the mill has performed well with recoveries from the Blended or consistent with expectations.

Moving to slide 13.

The phase 3 plus expansion continues to progress wealth with the shaft sink currently at a depth of 1,265. M representing 92% of its ultimate plan depth,

Scott R.G. Parsons: Other progress during the quarter included completing cladding and roofing for the bin house, advancing work on the paste plant, which is now 70% complete, and completing both earthworks for the administrative complex and the mill expansion to 12,400 tons per day. Lateral development also continued to advance, which is expected to support higher mining rates later this year and following the completion of the overall expansion. Over to slide 14, work is also underway on the evaluation of a larger expansion of the mill beyond 12,400 tons per day. Detailed engineering for the larger mill expansion is ongoing and expected to be completed by early 2026. To support a potential larger expansion, the earthworks for the new mill building was sized with a footprint that can accommodate an expansion up to 20,000 tons per day.

The remainder of the shaft sink is on track for completion. In the fourth quarter of this year.

Other progress during the quarter included, completing cladding and roofing for the bin house.

Advancing work on the pace plant, which is now 70% complete.

And completing both Earth Earth works for the administrative complex and the mill expansion to 12,400 tons per day.

Lateral development. Also continued to advance, which is expected to support higher. Mining rates later this year,

And following the completion of the overall expansion.

Over to slide 14.

Work is also underway on the evaluation of a larger expansion of the mill Beyond 12,400 tons per day.

Detail engineering for the larger Mill. Expansion is ongoing and expected to be completed by early 2026.

The support of potential larger expansion. The earth works for the new build building with sized with a

Scott R.G. Parsons: The new building will be configured to allow for additional leach tanks, as well as a second sag and ball mill, all of which can be sized to support increased processing rates of up to 20,000 tons per day. The larger mill is expected to have a parallel circuit dedicated to processing a higher grade blend of underground and open pit ore. Given the increased capacity, a larger expansion is expected to allow for higher underground and open pit mining rates. We look forward to outlining the upside potential within the expansion study later this year. Over to slide 15, as of quarter end, we spent and committed 79% of the total phase three plus expansion capital of $835 million. The expansion is expected to be completed in the second half of 2026 and will be a significant driver of low-cost production growth and free cash flow generation.

footprint that can accommodate an expansion up to 20,000 tons per day.

The new building will be configured to allow for additional leech tanks.

As well as a second sag and ball mill, all of which can be sized to support, increased processing rates of up to 20,000 tons per day.

The larger mill is expected to have a parallel circuit dedicated to processing a higher-grade blend of underground and open pit ore.

given the increased capacity. A larger expansion is expected to allow for higher underground and open pit mining rates.

We look forward to outlining the upside potential within the expansion expansion study later this year.

Over to slide 15.

As of quarter end, we spent and committed 79% of the total phase 3, plus expansion capital of 835 million.

The expansion is expected to be completed in the second half of 2026 and will be a significant driver of low-cost production growth and free cash flow generation.

Scott R.G. Parsons: Over to slide 16, Young Davidson produced 38,700 ounces, a 9% increase from the first quarter, with further improvement expected in the second half of the year, driven by higher mining rates and grades. This is also expected to drive costs lower compared to the first half of the year. Mining rates improved over the first quarter, but were lower than targeted levels. Higher than average snowfall and precipitation earlier this year led to a significantly higher than normal spring melt. This resulted in the increased inflow of groundwater into parts of the underground mine. This impacted the ability to skip ore to surface, resulting in nearly one week of downtime in May. Additionally, mining rates were impacted by power outages caused by storms in the region. Managing groundwater is a normal part of operating an underground mine.

Over to slide 16.

Young Davidson produced, 38,700 ounces. A 9% increase from the first quarter with further Improvement expected in the second half of the Year driven by higher mining rates and grades.

This is also expected to drive costs lower compared to the first half of the year.

Mining rates improved over the first quarter, but were lower than targeted levels higher than average snowfall and precipitation earlier this year.

Led to a significantly higher than normal spring melt.

This resulted in the increase in flow of groundwater into parts of the underground mine.

This impacted the ability to skip or to surface resulting in nearly 1 week of downtime in May.

Additionally, my name is impacted by power. Outages caused by storms in the region.

Scott R.G. Parsons: The increased inflow in the second quarter and resulting downtime was the first occurrence in 15 years of operating Young Davidson. To enhance regional watershed management practices and increase pumping capacity, this is not something we expect to recur in the future. Mining rates are expected to improve in the third quarter following a planned five-day shutdown for rope changes in the North Gate shaft that was completed in July. We expect a further increase to targeted levels of 8,000 tons per day in the fourth quarter. Grades mined and mill were consistent with the low end of full-year guidance. Grades mined are expected to be at similar levels in the third quarter, but increase in the fourth quarter. Reflecting higher milling rates through the remainder of the year and higher grades in the latter part of the year, we expect a much stronger second half.

Managing groundwater is a normal part of operating an underground mine.

The increased inflow in the second quarter and resulting, downtime was the first occurrence in 15 years of operating young Davidson.

To enhance regional watershed management practices and increase pumping capacity. This is not something we expect to recur in the future.

Mining rates are expected to improve in the third quarter. Following a plan 5-day shutdown for rope changes in the Northgate shaft that was completed in July.

We expect a further increase, the targeted levels of 8,000 tons per day in the fourth quarter.

Similar levels.

Of the third quarter, but increase in the fourth quarter.

Scott R.G. Parsons: Young Davidson generated record mine site free cash flow in the quarter of $59 million and $98 million in the first half of the year, putting the operation on pace for another annual record in 2025. Over to slide 17, the Mulattos District delivered a solid quarter and achieved a significant milestone, producing its three millionth ounce of gold over its 20-year history in operation. With at least another decade of production defined within PDA and a number of other emerging opportunities for higher grade ore within the district, we expect more milestones to come. Production during the quarter totaled 34,100 ounces, a 12% increase over the first quarter, reflecting higher grades stocked. Further increases in quarterly production are expected as a significant portion of the higher grade stock in the second quarter will be realized over the second half of this year.

Reflecting higher Milling rates through the remainder of the year and higher grades. In the latter part of the year. We expect a much stronger second half.

Young Davidson generated, record mindsight, free cash flow in the quarter of 59 million, and 98 million in the first half of the year.

Putting the operation on Pace for another annual record in 2025.

Over to slide 17.

The mulatto District delivered a solid quarter and achieved a significant Milestone producing. Its 3 millionth ounce of gold over its 20 year history in operation

with at least another decade of production defined within PDA and a number of other emerging opportunities for higher grade or within the district,

We expect more Milestones to come.

production during the quarter, total 34,100 Oz, a 12% increase over the first quarter reflecting higher, grades stock

Scott R.G. Parsons: Costs decreased 18% compared to the first quarter, with a further reduction expected in the second half of the year. Mulattos remains well positioned to meet its production and cost guidance for the year. PDA development continues to advance with a focus on detail engineering during the second quarter. Spending will accelerate in the second half of the year with the commencement of underground development and placement of long lead time orders for the mill. The Mulattos District generated mine site free cash flow of $55 million in the second quarter. The stronger free cash flow expected in the second half of the year, driven by higher production and lower costs. The operation is well positioned to continue generating strong ongoing free cash flow while funding the construction of PDA. With that, I will turn the call back to John.

Further increases in quality production are expected as a significant portion of the higher grade stock in the second quarter will be realized over the second half of this year.

Cost decreased 18% compared to the first quarter with a further reduction expected in the second half of the year.

Models remains well, positioned to meet its production and cost guidance for the year.

Eda development continues to advance with a focus on detail engineering during the second quarter.

Spending will accelerate in the second half of the year with the commencement of underground development and placement of long lead time orders for the mill.

The madus district generated mindsight free cash flow of 55 million in the second quarter.

The stronger free cash flow expected in the second half of the Year driven by higher production and lower costs.

The operation is well positioned to continue generating strong ongoing free cash flow while funding the construction of PDA.

Greg Fisher: Thank you, Luc. Our operations demonstrated a significant improvement in the second quarter. We expect this trend of growing production and declining costs to continue into the second half of the year and over the next several years. The Island Gold District will be a key driver of this improvement. The transition of processing high-grade island ore within the Majino Mill was one of the last key steps towards integrating the operations and realizing significant cost synergies going forward. I'll now turn the call back to the operator to open the call for your questions.

With that, I will turn the call back to John.

Thank you, Luke.

Our operations demonstrated a significant Improvement in the second quarter. We expect this trend of growing production and declining costs to continue into the second half of the year and over the next several years.

The island gold district will be a key driver of this Improvement, transition of processing high-grade island or within the Maginot Mill was 1 of the last key steps towards integrating, the operations and realizing significant cost synergies going forward.

Scott Parsons: Thank you. We'll now take questions from the telephone lines. If you have a question, please press star one. You may cancel your question at any time by pressing star two. Please press star one at this time. If you have a question, there will be a brief pause while the participants register for their questions. Thank you for your patience. The first question is from Ovais Habib from Scotiabank. Please go ahead.

I'll now turn the call back to the operator, to open the call for your questions.

Thank you. We'll now take questions from the telephone lines. If you have a question, please press star 1

You may cancel your question at any time by pressing star 2.

Please press star 1 at this time.

If you have a question, there will be a brief pause while participants register for their questions. Thank you for your patience.

Ovais Habib: Thanks, operator. Hi, John and ALAMOS team. Really great to hear that Majino Mill is ramping up and that island gold ore is being processed at Majino. John, a couple of questions from me. The first one, I mean, look, it was widely expected that you would increase the ASIC guidance. So glad that's out of the way. And I'm glad you maintained the production guidance as well. Now, John, you know I'm getting a lot of questions on this, so I just want to make sure that I'm asking this on this conference call. How confident are you in meeting the production guidance comfortably and what levers you have within your portfolio to make sure the production guidance remains on track?

The first question is from Ovis Habib from Scotia Bank. Please go ahead.

John McCluskey: Oh, let me put it in this perspective, Ovais. I've been the CEO of the company since 2003. I've participated in close to 90 quarterly calls. We've been giving guidance all along, starting from the time when we were trying to get the mine built, which we managed to achieve. The first mine Mulattos, so we achieved it in record time and brought it in on budget. This was in 2005, a very, very difficult time in the market, and we were operating those days in a wing and a prayer. And we've been giving guidance all through that period, and we are remarkably accurate over that period of time. You can check it out for yourself. If you look for 14 consecutive quarters up to Q1 of this year, we basically either met or we beat our production and cost guidance. So here we are.

It's operator. Hi, John and Alamos team. Uh, really great to hear that Maginot mil. Uh, is ramping up, uh, and that, uh, Island gold or is being processed at Maginot, uh, John couple of questions for me. Um, the first 1, I mean, look, it was widely expected that you would increase, uh, the Asic guidance. Uh, so glad that's out of the way and I'm glad you maintain the production guidance as well. Uh, John, you know, I'm getting a lot of questions on this. So I just want to make sure that I'm asking this on, on this conference call, how confident are you in meeting the production guidance comfortably and what levers, uh, you have within your portfolio to make sure the production guidance remains on track.

Oh, let me put it in this. This perspective of a um, I've been uh, the CEO of the company since 2003.

I've participated in close to 90 quarterly calls.

uh, we've been giving, uh, we've been giving guidance

all along, uh, starting from the time. Uh, when we were trying to get the Mind built,

uh, which we managed to achieve the first mind mulatto. So we achieved it in record time. And, um,

Uh, brought it in uh, on budget. Uh, this, this was in 2005, very, very difficult, time in the market and we were, we're operating those days in a wing and a prayer. And we've been giving guidance all through that period,

and we are, uh, remarkably

Accurate over that period of time you you you can check it out for yourself.

John McCluskey: We got off to a slow start this year. We had very difficult conditions in Canada this year. That affected both our operations at YD and Island Gold, but we got through it. It has had an impact on our cost guidance for this year. We just won't be able to catch up from a cost perspective to have met our cost guidance, and so we revised it. But with respect to production, we're very confident. We're very confident. And we would not have reiterated guidance if we did not have that type of confidence. I mean, we revised costs. We could have just as easily revised production guidance if it was required. We didn't think that was required. You want to add something, Greg, or?

Uh, so here we are. We we had we got off to a slow start this year. We

had very difficult conditions that, uh,

In in Canada this year both that affected, you know, both our um our operations that uh at WD and Island goal. Um but we got through it. Um it has had an impact on our our cost guidance for this year.

We we, we just won't be able to, uh, to catch up, um, from a cost perspective to to a better cost guidance. And so we revised it but with respect to production, we're very confident,

John McCluskey: I mean, I could just touch on the drivers a little bit as Ovais asked about. I mean, we outlined our Q3 guidance to be between 145,000 and 155,000 ounces, and we expect Q4 to step up even higher than that. And really, the key drivers are going to be at YD. At Young Davidson, it's higher milling rates. It's higher milling rates and grades are going to drive that in the second half of the year. And we had expected that from when we released our original guidance in January. With Island Gold, Majino is ramping up, so we'll have higher milling rates from Majino, but we're also looking to step up the underground mining rates coming from Island Gold, given the fact that we have the bigger mill now. And then at Layaki Grande, we stack very good grades in Q2.

We're very confident and we would not have, uh, we would not have reiterated guidance. Uh, if if we, if we did not, uh, have that type of confidence. I mean, we we revised costs. We could have just as easily, uh, revised production guidance. If it was required, we didn't think that was required.

You want to add something Greg? Or oh, I mean, I, I could just touch on the drivers a little bit as, as a vase asked about. I mean, we, we outlined our Q3 guidance to be between 145 and 155,000 Oz, uh, and we expect Q4 to step up even higher than that. And really, the key drivers are going to be at yd. I had young Davidson it, it's higher billing rights, it's higher. Milling rates in grades, are going to drive that in the second half of the year. And we had expected that from when we released our original guidance in, uh, in in January, uh, with Island gold, uh, Munoz ramping up. So,

John McCluskey: We're going to continue to stack good grades or higher grades in Q3 and Q4. So it's just a matter of the ounces coming off the pad. So all of those things are going to drive our production significantly higher in the second half of the year.

Ovais Habib: Thanks for the call on that, John and Greg. I just want to move on to the exploration side then. John, when we were visiting the Island Gold site in June, your team was really highlighting exploration potential in close proximity to the Majino Mill, the regional kind of exploration work. Plus, you guys were hitting some interesting intersections on the west side of Island Gold. Any of these drill targets really standing out? And are we expected to see more results from this area? That's part one. And then part two of the question is, also, is the plan to delineate a source to feed the Majino Mill from these areas before you release the expansion study?

Higher Milling rates from a genome. But we're also looking to step up the underground, mining rates coming from from Island, gold. Given the fact that we have the, uh, the bigger Mill now and then at leaki Grande. Um, you know, we stacked very good. Grades in Q2, we're going to continue to stack good grades or higher grades. And in Q3 and Q4. Uh, so it's just a matter of the the Oz is coming off the pad. So all of those things are going to drive our production significantly higher in the in the second half of the year.

John McCluskey: We have exciting exploration results coming from right across the company. We've made some interesting new discoveries down in Mexico. We've been hitting into some fabulous grades, as I outlined in my comments, as far away as seven kilometers from our mill in areas of old workings. We had high expectations for those areas. They've come in very well. We've been drilling. We've actually been focusing quite a lot of our effort converting resource to reserve so we can incorporate more reserves into this big expansion study we're coming up with on the fourth quarter. We're having excellent results on that front. But I've got Scott R.G. Parsons sitting next to me here, and I'm going to turn it over to him to give further color to your question.

Thanks for the color on that, John and Greg, uh, just, uh, want to move on to the exploration side. Then, uh, John, when we were visiting, the island gold site in June, uh, your team was really highlighting, uh, exploration potential, you know, in in close proximity to the Maginot Mill. The regional kind of uh exploration work plus. Uh, you guys were hitting some, interesting intersections. Uh, on the west side of Island gold. Uh, any of these drill targets really standing out? Uh and are we expected to see more results from this area? That's part 1 and then part 2 of the question is also is the plan to donate uh a source to feed the Maginot Mill uh from these areas before you release uh the expansion study.

Scott R.G. Parsons: Thank you for the question, Ovais. There's a number of opportunities, as you touched on, that our team is very excited about. I'm equally excited to off to the west. You touched on some of the surface drilling and underground drilling we've been doing between Island Gold and Majino. And that area, it's essentially the upplunge extension of the island west zone. And as we establish underground drill platforms and continue drilling from surface, we continue to define high-grade mineralization in that area. So that's no surprise to us, and it was just a matter of time before we could get there and start drilling it. We continue to have success in the hanging wall, footwall zones. Those are all incremental allowances in terms of allowances per vertical meter in proximity to existing infrastructure. So those all continue to expand, and we defined as we define new zones as well.

Look, we have exciting, exploration results coming from right across the company. We, we've, we've made some interesting new discoveries down in Mexico. Uh, we've been heading into some, um, some fabulous grades as I outlined in my comments, um, as far as 7 kilometers from from, uh, our, our male, uh, in areas of workings, uh, we, we had high expectations for those areas. They've, they've come in very well. We've been drilling, we've actually been focusing quite a lot of our effort converting resource to reserve, so we can incorporate more reserves into this. Um, this big expansion study, we're coming up with on the fourth quarter. We're having excellent results on on that front. Um, but I've got, uh, Scott RG Parsons sitting, uh, next to me here. And, um, I'm going to turn it over to him to, uh, to, uh, give further color to your, to your question.

Thank you for the question of these.

Um, there's a number of opportunities that you touched on that were our team is very excited about. I'm equally excited. Um, to talk to the wife, you touched on some of the uh, the surface Drilling and underground. Drilling we've been doing uh, between Island gold and the Gino and and that that area is essentially the up plunge, extension of the Island West Zone. Um, and as we establish underground drill platforms and continue drilling from surface. We continue to Define high grade mineralization in that area. So that's no surprise to us and just a matter of time before we could get there and uh and start drilling it. Um we continue to have success in the hanging wall, foot wall zones, those are

Scott R.G. Parsons: And the most exciting part is island downplunge. It continues to remain open at depth, below 1,500 meters. This is shallow in terms of these gold systems in Canada. We have indications from earlier drilling that the island continues to downplunge. And later this year, once we've pivoted back from our delineation drill program, we will continue exploring island at depth. And then, as John touched on as well, near mine opportunities, including Klein and Edwards and Pick. These are historic mines seven kilometers from the Majino Mill. They've gone through a series of different operators over the years. We've consolidated all the land there, and really, it's a new gold system we're just starting to explore. And you can see the results already this year, quite encouraging, and we'll be continuing to drill at those targets going into the second half of the year.

Ovais Habib: And Scott, I mean, based on this drilling and the drilling results expected, I mean, is the plan to kind of have these results incorporated into the expansion, or is this kind of the next phase of that expansion that these opportunities will be brought into any sort of production profile at the Island Gold complex?

A series of different operators over the years. Uh, We've Consolidated all the land there and, uh, really. It's a new gold system. We're just starting to explore and you can see the results already this year, uh, quite encouraging and will be, uh, continuing to drill, uh, at those targets going into the, uh, second half of the year.

Scott R.G. Parsons: Our absolute focus right now is getting the inferred mineral resource paints at island converted to indicated to bring that into the expansion study before year end. There's about a million ounces sitting there that we're actively drilling on from surface and underground right now, and we're on track to complete that program for the year-end expansion. The other targets I referenced will be more longer-term or midterm targets in terms of Klein Edwards and Pick. There's also the North Shear, which I didn't touch on, but those will come in as new, what I would anticipate as new resources in the midterm that would provide potential opportunities for higher grade mill fees at Majino.

And, and, and Scott, I mean, based on, on these, this Drilling and, and, and drilling results expected. I mean, is the plan to kind of have these results incorporated into the expansion or is this kind of the next phase of that expansion? Um that these uh opportunities will be brought into um any sort of production profile that uh at uh you know the the island gold complex there are absolutely

Ovais Habib: That's great color, Scott. I appreciate that. That's it for me, guys. Thanks for taking my questions.

Focus right now is getting the inferred mineral resource base at Ireland. Converted to indicated to bring that into the expansion study before your answer is about a, a million ounces sitting there that we're actively drilling on from surface and underground right now. And we're on track to complete that program. Um, for the year end expansion, the other targets I referenced will be more, uh, longer term or mid-term targets, uh, in terms of the client adverts and Tech. Um, there's also the north sheer which I didn't touch on, but those will come in, um, as a new, uh, what I would participate as new resources in the midterm that would, uh, provide potential opportunities for a higher grade. Milly that migena

That's great color, start appreciate that. Uh, that's it for me guys. Uh, thank you for taking my questions.

Scott Parsons: Thank you. The next question is from Cosmos Chu from CIBC. Please go ahead.

Thank you.

The next.

Cosmos Chu: Thanks, John, Greg, Luc, and Scott, times two. Maybe my first question is on Young Davidson, just to talk about the higher levels of groundwater due to the spring melt. Has that been fully resolved? Just to confirm that the groundwater is now normalized.

The next question is from Cosmos. Chew from CIBC please. Go ahead.

John McCluskey: Hi, Cosmos. Yeah, Luc here. Yes, it has been resolved. As we mentioned, it was kind of a bit of a perfect storm there with a quick spring melt and significant precipitation during the spring melt as well, which added more water within the regional watershed and resulted in more groundwater flowing into the mine. We're more adherent to making sure that we understand the whole regional watershed and keeping an eye on that moving forward for the longer term as well. We've actually added some additional pumping capacity as backup to both our open pit dewatering as well as our underground dewatering. So we don't expect that event to happen again. And as we mentioned, we've been operating there for 15 years. It's the first time this sort of significant event happened, but we feel we have it addressed moving forward.

Thanks, uh, John Gregg Luke and Scott times 2. Um, maybe my first question is on young Davidson, um, just to uh talk about the uh, higher levels of groundwater due to the spring melt uh has that uh been fully resolved. Uh, just to confirm that the groundwater is now normalized.

Yeah I Cosmo yeah Luke here. Yes it has been resolved. It it was uh as we mentioned it was kind of a bit of a perfect storm there with a quick spring melt and

Significant precipitation during the, the spring melt as well, which added more water, water water within the regional watershed.

And resulted in more groundwater and slowing into the mine. We've you know, we're

Cosmos Chu: Right. I guess there's no pun intended when you said perfect storm. Maybe on the throughput here, you did 7,190 tons per day in Q2. Reading your MDNA, you know, you will get to 8,000 tons per day, but likely not until Q4. Am I correct in that interpretation?

More more adherent to, uh, making sure that we understand the whole Regional Watershed and and keeping an eye on that moving forward for the longer term as well. We've actually added some additional pumping capacity as backup to our, uh, both our open pit, the watering, as well as our underground dewatering, so we don't expect that event to happen again. And as we've mentioned, we've been operating there for 15 years. It's the, it's the first time this sort of significant event happened, uh, but we, we feel we have an address moving.

John McCluskey: Yes. I mean, we had a rope change scheduled as part of this year for the head ropes at the North Gate shaft, and that occurred early July. Post completion of that rope change, we've been running at 8,000 tons per day. But obviously, when you factor in the number of days over the course of the quarter, we'll probably come in around 75 to 7,600 tons per day for the quarter. But as we move into Q4, we don't have any significant scheduled maintenance requirements for the plans and would expect to be running at 8,000 tons per day.

Right, I guess there's no pun intended when you said Perfect story, um, maybe on the throughput here. Um, you know, you did 7,190 tons per day and 22 reading your mdna. You know, you will get to 8,000 times per day but likely not until Q4. Uh, am I correct in that interpretation?

Yes, I mean we've had we had a rope change schedule as part of this year for the, the head ropes at the North Gate shaft. And that occurred early July, uh, post completion of that rope change. We've been running at 8,000, tons per day, but obviously, when you factor in the, the the number of days over the course of the quarter,

Will probably come in around 75 to 7,600 tons per day for the quarter but as we move into Q4 we don't have any significant scheduled maintenance.

Cosmos Chu: Great. And then also at YD, I think you mentioned that in Q3, grades will remain at the lower end of full-year guidance and closer to 2.05 grams per ton. Is that as expected? And was there any ability on your end to potentially, you know, mine higher grades in Q3, even maybe in Q2, to offset the lower than 8,000 tons per day throughput?

Uh, requirements for the for the plant and would expect to be running at 8,000 tons per day. Mhm. Great. And that also a yd. I think you mentioned that uh in Q3 grades will remain at the lower end of, for your guidance and closer to 2.05 gram per tonne is that as expected and uh was there any ability on your end to potentially you know, mine higher grades

John McCluskey: Well, I mean, we've got a pretty committed schedule with regards to the extraction sequence for the underground. And again, it's just to manage the overall regional extraction of the ore body to be responsible as far as the mining phase of what we're doing for Young Davidson. So I mean, really, the lower grade being at the lower end of guidance has been a function of, obviously, the slower first half of the year not mining all the tons that we expected. And as well as a slight change in sequence has resulted in us being more at the lower end of guidance as opposed to maybe being near the mid or upper end of guidance. But as we move through the mine plan through the second half of the year, it is a pretty flat line between Q2, Q3.

823. Uh, even maybe in Q2 to offset the uh lower than 8,000 times per day, throughput

I mean we've we've got a pretty, uh, committed, uh,

Schedule with regards to the extraction sequence for the underground. Uh, and again, it's just to manage the overall. Um,

John McCluskey: But as we move into Q4, as per our mining sequence that we expected, we will be getting into higher grades that would be more near the higher end of our guidance. And then the other point I would make is, you know, based on where we have been mining, even though there has been a slight sequence change where we haven't mined all of the tons, from a reconciliation point of view, the planned grades that we were expecting are aligned with the actual grades that we've been seeing from a reconciliation point of view.

Guidance. But as we move through the Mind plan, through the second half of the year, it is pretty flat line between Q2 and Q3; but as we move into Q4,

As per our, our, uh, mining sequence that we expected we will be getting into higher grades. That would be more near the higher end of um,

Cosmos Chu: Great. And then maybe just a few numbers question on Island Gold. As you mentioned, with the transition of the Island Gold ore to the Majino Mill, recovery looks to be as expected. So how should we look at recovery? Like in Q2, it was 98% for Island Gold, 95% for Majino. So should we just take a weighted average, and that should be kind of the expectation we should expect on a go-forward basis?

Of our guidance. And then the other point I would make is, you know, based on where we have been mining, even though there has been a slight sequence change, or we have in mind all of the tons from a Reconciliation point of view. Uh, the, the plan grades that we were expecting, are are aligned with the actual grades that we've been. We've been seeing, uh, from a Reconciliation point of view.

Mhm. Great.

John McCluskey: Yeah, our expectation based on the blended mill feed into the Majino Mill with the island ore, as well as the Majino ore, the expectation should be an overall recovery of about 96% is what you should expect.

Um, and that maybe just a few numbers question on island gold. Um, as you mentioned, uh, with the transition of the island Gold Award to the my genome Mill recovery, looks to be, uh, as expected. Um, so how should we look at recovery like being Q2? It was 98% for Island gold 95% from a genome. Um, so should we just take a weighted average? And and that should be kind of the expectation. We should expect on a go forward basis.

Cosmos Chu: Okay. Great. And then in terms of the redesigned liner and the bolt configuration of the Sag Mill, just to kind of confirm, you now have the configuration needed at the Majino Mill to achieve your near-term target of 11,200 tons per day. So it's just really down to kind of getting it up and running, availability, and things like that. You don't need to change anything else.

Yeah, our, our expectation based on a blended, um, mil feed into the migena mill with the island, or, as well as the Maginot or, uh, the expectation should be an overall recovery of about 96% is what you should expect.

Yeah, great. And then, uh, in terms of the, um,

John McCluskey: Correct. I mean, the last step really there was just having more plant availability for the Sag Mill. And by making the change that we did in early July with the liner configuration as well as the bolts, that will give us more industry-standard plant availability for the Sag Mill moving forward to be able to continue that ramp up to strive for the 11-2 that we're expecting as we move through the quarter.

Redesigned liner and the uh and the bolt configuration on the SAG Mill. Just a uh, you know, kind of confirm. Um, you now have the configuration needed at the Maginot Mill to achieve your near-term target of 11,200 times per day. So I just really down to kind of getting it up and running availability and things like that. You don't need to change anything else.

Cosmos Chu: And then one last question on the grades at Majino, the open pit. As you mentioned, 0.82 gram per ton in Q2. How should we look at the mine grade on a go-forward basis? I think your full-year guidance is anywhere between 0.8 to 0.9 gram per ton. Your reserve grade is 0.91. So could you remind us, you know, how we should look at grade? Or does it really matter, given that you stockpile some of the lower grades anyways, and what's actually going through the mill is high?

Correct. I mean, the, the last step really, there was just having more plan availability for the segment, and by making the change that we did in, uh, early July with the line of configuration, as well as the bolts, uh, that will give her give us more, uh, industry standard plan availability for the Sago. Moving forward, uh, to be able to continue that ramp up to, to strive for the 112 that we're expecting. As we move through the quarter,

Mhm. And then one last question on the Grate at, uh, Moschino, the open pit. Um,

as you mentioned 0.82, gram per ton in Q2 um,

John McCluskey: Yeah. I mean, if you look at what we processed in Q2, we averaged about 0.94, which falls within our guidance of that 0.9 to 1.05. So obviously, the mine grade overall is always going to be a bit lower because we're stockpiling the low grade and feeding the best grade material. So really, the way you should look at it is on a basis of what we're going to be processing in the quarter, on a quarter-by-quarter basis moving forward. Certainly, in the second half of the year, we should be within that range of 0.9 to 1.05 coming from Majino ore.

How should we look at, you know, the Mind grade on a goal for basis? I think the full year guidance is anywhere between 0.8 to 0.9 gram per tonne, you reserve grade at 0.91. So could you remind us, you know, how we should look at Great? Oh, does it really matter given that you stock plasma the lower grade anyways and what's actually going through the bill as high. Yeah. I mean if you look at what we you know, processed in

In in Q2 we averaged about 0.94 which Falls within our guidance of that 0.9 to 105. So obviously the the mine grade overall is always going to be a bit lower because we're, we're stockpiling the low grade and feeding the best grade material. So, really the way you should look at it is on a on a basis of what we're going to be processing in the quarter.

Cosmos Chu: Perfect. Great. Those are all the questions I have. Thanks, everyone. Thanks.

Uh on a quarter-by-quarter basis. Moving forward. Certainly in the second half of the year, we should be within that range of 0.9 to 105 coming from a go War.

Perfect.

Great. Those are the questions I have. Thanks everyone. Uh thanks.

Scott Parsons: Thank you. As a reminder, you may press star one if you have a question. The next question is from Don DeMarco from National Bank. Please go ahead.

Thank you.

As a reminder, you may press star 1. If you have a question,

Don Demarco: Thank you, operator. And good morning, John and team. Good to see the strong free cash flow in Q2 while keeping the projects on track. So first question for me is at island, and congratulations on the shutdown of the island mill. Now, Majino Mill throughput, I understand it's running around 9,500 tons per day in the last couple of weeks of July. So what do you expect the throughput profile to be through the rest of the quarter over August and September? Like, do you expect a quick ramp up to 11K ton per day and potentially even exceed it, or a more moderate increase, maybe reaching 11K ton per day in September?

The next question is from Don DeMarco from National Bank. Please go ahead.

Thank you, operator, and good morning, John and team. It's good to see the strong free cash flow in Q2 while keeping the projects on track.

So, first question for me is uh, uh, at Island.

And congratulations on on the shutdown of the the island Mill. Now the Maginot Mill, throughput understand it's running around 9,500 tons per day in the last couple weeks of July.

So what should what do you expect the throughput profile to be through the rest of the quarter over August and September? Like do you expect a quick ramp up to 11k?

John McCluskey: Yeah, Don. Hi, it's Luc here. It'll be a bit of a gradual ramp up as we continue to move forward through the quarter. But certainly, as we hit our stride in Q4, we'd be more consistent to be running at 11-2. Just with the liner change that we've just completed, the liner and bolt change, we've got the ball charge setting that we're looking at optimizing, certainly, as well as there's a little bit less volume with the new liners. So that's part of where the gradual ramp up occurs through the quarter. But we would expect to hit our stride certainly in Q4.

Time per day and potentially, even exceed it or more moderate increase. Maybe reaching 11k tumber day in September,

Yeah, Don High.

here, it'll, it'll be uh,

A bit of a gradual ramp up as we continue to move forward uh through the quarter. But certainly, as we hit our stride in Q4, we'd be more consistently running at 112. Um, you know, just with the liner changes that we've just just completed uh, the liner and bolt change. Um,

Don Demarco: Yeah, and just to add, the critical thing for us is to ensure we're maximizing.Out

We're uh, you know, we've got the ball charge setting that we're looking at the optimizing certainly, as well as there's a little bit less volume with the new liners. Um, so that's that's part of where the the gradual ramp up occurs through the quarter. Uh, but we would expect 8, our strike certainly in Q4.

Operator: of underground ore that's coming from Ireland, and that's continuing to be, where we expect it to be.

Rachel Smith: Okay, great. Yeah, and it was mentioned in response to an earlier question that you plan to step up the processing of the high-grade ore at the Mugino Mill. So, should I take this as that Ireland might contribute more than 1,200 tons per day to the mill in Q3 or Q4?

Critical thing for us is to uh ensure we're, we're maximizing the amount of underground oil that's coming from Ireland and that's continuing to be uh where we expect it to be.

Operator: Yes. I mean, as part of our, you know, Phase 3+ expansion and our ramp-up, our mining rates were starting to gradually increase from the island underground component. So, yes, you see the second half of the year, you will start to see there would be more contribution from island underground ore going into the Mugino Mill on a combined basis. We'd be targeting about 1,400 tons per day.

Okay, great. Yeah, and it was mentioned in response to an earlier question that you plan to step up the processing of the high-grade ore at the genome mil. So should I take this as that Island, might contribute more than 1,200 tons per day to the mill and 23 or Q4.

Rachel Smith: Okay. Well, should that be through 1,400 for the entirety of H2 or how should we look at Q2, Q3 versus Q4?

Yes. Uh I mean, as part of our, you know, phase 3 plus expansion and our ramp up our mining weeks, we're starting to gradually increase from the islands underground components so yes you see the second half of the year you will start to see. There would be more contribution from Island underground or going into the the Maginot mill on a combined basis, but we'd be targeting about 1400, tons per day.

Operator: Q3, you're running around 1,300 tons per day. Q4, we'd be running at about 1,400 tons per day.

Okay. Well, should that be through 1400 for the entirety of H2, or how should we look at Q2 2023 versus Q4?

Rachel Smith: Excellent. And it's great to hear that John, as a final question, he reiterated the Consolidated Production Guide. Are you expecting to achieve, production guidance at all the mines? Like, of course, Young Davidson and Ireland are currently running at the low end of their respective ranges. So, just wondering if it's on a consolidated basis or if there's any additional color on a mine-by-mine basis.

2, 2.3, you're running around 1,300 tons per day in Q4. We'd be running out of about 1,400 tons per day.

Excellent.

and, uh, it's great to hear that John as a final question, he reiterated the Consolidated production guide

Scott Parsons: Well, to hit it on a consolidated basis, you've got to hit it mine by mine. So, you know, we get variations, across each of those operations, just given, you know, the unforeseen things that can happen in, in mining operations. But, you know, all things being equal, we're quite confident in the guidance we provided on a mine-by-mine basis and on a consolidated basis.

Are you expecting to achieve, uh, production guidance at all the mines? Like, of course, young Davidson, and Ireland are currently running the low end of their respective ranges. So, just wondering if it, if it's on a Consolidated basis or if there's any additional color on a Mine by mine basis.

Well, I hit it on a ...

Rachel Smith: Okay, great. Okay, well, that's all for me. Thank you for that, and good luck with the rest of the year.

Operations, just given, you know, the unforeseen things that can happen in um, in mining operations. But um you know all things being equal, we're quite confident in the guidance, we provided on a mind by mind basis and on a Consolidated basis

Okay, great. Okay, well, that's all from me. Thank you for that. And uh, good luck with the rest of the year.

Scott Parsons: Thank you.

Scott R.G. Parsons: Thank you. Thank you. There are no further questions at this time. This concludes this morning's call. If you have any further questions that have not been answered, please feel free to contact Mr. Scott Parsons at 416-368-9932, extension 5439. Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.

Thank you.

Thank you. The honor for the questions at this time.

This concludes, this morning's call.

If you have any further questions and have not been answered, please feel free to contact, Mr. Scott Parsons at 4163689932 extension,

5439.

Thank you to conference has now ended. Please disconnect your lines at this time and we thank you for your participation.

John McCluskey: This conference is no longer being recorded. Cette conférence n'est plus enregistrée.

This conference is no longer being recorded.