Q2 2025 New Gold Inc Earnings Call

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I would now like to hand, the conference over to Nick Shah.

Executive Vice President of strategy and business development. Thank you.

Thank you Ronnie and good morning, everyone. We appreciate you joining us today for new Gold's second quarter 2025 earnings conference call and webcast.

On the line today, we have Patrick <unk>, President and CEO, Keith Murphy, CFO, and Travis Murphy, Vice President of operations.

In addition, we have Lucas Buchanon, Vice President Technical services, and John <unk>, Vice President of geology available to assist during the question and answer portion at the end of the call.

Should you wish to follow along with the webcast. Please sign in from our homepage at <unk> Dot com.

Before the team begins the presentation I would like to direct your attention to our cautionary language related to forward looking statements found on slide two of the presentation.

Today's commentary includes forward looking statements relating to new gold in this respect we refer you to our detailed cautionary note regarding forward looking statements in the presentation.

You are cautioned that actual results and future events could differ materially from those expressed or implied in forward looking statements.

Slide two provides additional information and should be reviewed.

We also refer you to the section entitled Risk factors in New Gold's latest Aif MD&A and other filings available on SEDAR, plus which set out certain material factors that could cause actual results to differ.

In addition at the conclusion of the presentation. There are a number of end notes that provide important information and should be reviewed in conjunction with immaterial presented.

Slide four highlights some of the key accomplishments during the second quarter through the first half of 2025, we have made excellent progress on advancing and completing many of the objectives presented at the beginning of the year.

Safety highlight by referred to care culture continues to be a focus and strength for the company during the quarter. We delivered a low total recordable injury frequency rate of 0.8 to continuing the downward trend over the last three years.

New Afton was awarded three safety awards during the second quarter for exemplary safety performance in 2020 for.

The awards received included the GTE, Ryan Regional award for British Columbia, and Yukon, British Columbia, Safest large underground mine and British Columbia as mine Safety Innovation Award in.

In the second quarter, New Afton also one British Columbia's underground mine rescue Championship and the rainy River mine, One Thunder Bay District Mine Rescue Championship.

True Testament to our commitment to health and safety.

During the quarter. The company produced approximately 78600 ounces of gold and $13 5 million pounds of copper at an all in sustaining costs of $1 $393 per ounce.

Gold production for the first half of the year was about 38% at the midpoint of the consolidated production guidance range of 325 million to 365000 ounces of gold consistent with the planned 38% stated in the February outlook.

The company generated more than $163 million in cash flow from operations and achieved a record of $63 million in free cash flow rainy River also reported a quarterly record of 45 billion and free cash flow.

The company made significant progress on initiatives aligned with its three year production growth and accomplished several key milestones during the quarter.

At new Afton seasonal and keep construction is now approximately 65% complete supporting the progressive increase in processing rates towards the target of 16000 tonnes per day by early 2026.

An important development milestone was also achieved in may with the completion of undercutting unlocking the remaining extraction drives for development and construction.

At rainy River the pit portal breakthrough was achieved in early April subsequently completion of the ODM East ventilation loop and commissioning of the fresh air raised were accomplished later in the quarter.

Key milestones are expected to facilitate increased underground development and production rates.

Our exploration initiatives made significant progress during the quarter highlighted by record activity at new Afton. Following the completion of the C zone extraction level exploration drift current efforts are concentrated on caisson.

At rainy River work is advancing on the northwest trend open pit zone as well as upgrading the underground ore inventory, we plan to provide an exploration update in September.

In April it was announced that Newbuild would acquire the remaining 19, 9% free cash flow interest at new Afton consolidating our interest to 100% in.

In summary, we achieved the planned objectives for the first half of 2025 with a continued focus on generating meaningful value for our shareholders with that I will now turn the call over to Travis.

Travis.

Thank you Anthony.

I'm on slide six which is our operating highlights as <unk> noted Q2 delivered production and cost on plan production totaled approximately 78600 gold ounces.

$13 5 million pounds of copper this increase in gold production compared to Q2 2024 was driven by planned higher feed grade at rainy River, partially offset by lower plant feed grade at new Afton.

Operator: All lines have been placed on mute to prevent any back Please be advised that today's conference call and webcast is being recorded.

Grab it.

Thank you, anchor.

Consolidated all in sustaining costs for the quarter were $1393 per gold ounce on a byproduct basis in line with Q2 2024, but a substantial improvement over the first quarter of 2025.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask questions during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, simply press star 1 again.

Ankit Shah: I would now like to hand the conference over to Anit Shah, Executive Vice President of Strategy and Business Development. Thank you. Thank you, Jean-Louis, and good morning, everyone. We appreciate you joining us today for New Gold's second quarter 2025 earnings conference call and webcast.

We will continue to trend down throughout the year as production increases.

New Afton delivered an excellent quarter as <unk> continued to over deliver compared to the plan set out at the beginning of the year.

As a result of new Afton achieved an all in sustaining cost of negative $537 per ounce after considering the copper credit.

Ankit Shah: On the line today we have Patrick Godin, President and CEO, Keith Murphy, CFO, and Travis Murphy, Vice President, Operations. In addition, we have Luke Buchanan, Vice President, Technical Services, and Jean-Francois Rabanel, Vice President, Geology, available to assist during the question and answer portion at the end of the call.

Rainy River delivered on plan as the mill transition from low grade stockpile material to processing higher grade open pit ore.

I'm on slide 6 which has our operating highlights as inkitt noted Q2 delivered production and costs on plan production totaled, approximately 78,600 gold Oz and 13.5 million pounds of copper this increase in gold production compared to Q2 2024 was driven by planned higher feed grade at Rainy River, partially offset by lower plan fee grade at new atton Consolidated. All in sustaining costs, for the quarter were 1,393 for gold Downs. On a byproduct basis, in line with a Q2, 20224, but a substantial improvement. Over the first quarter of 2025.

Possible will continue to Trend down throughout the year as production increases.

All in sustaining costs were $1696 per ounce in the quarter, a substantial improvement compared to the first quarter.

Unknown Executive: Should you wish to follow along with the webcast, please sign in from our homepage at newgold.com.

New happen. Delivered an excellent quarter as a B3 Cape can continue to overdeliver. Compared to the plan set out at the beginning of the year.

Unknown Executive: Before the team begins the presentation, I would like to direct your attention to our cautionary language related to forward-looking statements found on slide two of the presentation. Today's commentary includes four looking statements relating to New Gold. In this respect, we refer you to our detailed cautionary note regarding four looking statements in the presentation. You are cautioned that actual results in future events could differ materially from those expressed or implied in forelooking statements.

Cost should continue to trend lower throughout the year as production ramps up.

Our total capital expenditures for the quarter, approximately $92 million with $34 million spent on sustaining capital and $58 million spent on growth capital.

As a result new Afton achieved an all-in sustaining cost of negative 537 per ounce. After considering the copper credit

Rainy River. Delivered on plan, as a male transition from low-grade stockpile material to processing higher. Grade open pit or

Sustaining capital is primarily related to mobile equipment, while growth capital primarily related to construction growth mine development tailings and machinery and equipment.

Unknown Executive: Slide 2 provides additional information and should be reviewed. We also refer you to the section entitled Risk Factors in New Gold's latest AIF, MD&A and other filings available on CDAR Plus, which set out certain material factors that could cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of endnotes that provide important information and should be reviewed in conjunction with the material presented.

All-in sustaining costs for 1,696 per ounce in the quarter, a substantial Improvement compared to the first quarter.

Cost should continue to Trend lower throughout the year as production ramps up.

Not rainy river sustaining capital is primarily related to open pit stripping and tailings facility expansion, while growth capital related to underground development and machinery and equipment.

Our total Capital expenditures for the quarter, approximately 92 million with 34 million spent on sustaining capital and 58 million spent on growth capital.

Turning to the assets.

<unk> with new Afton on slide seven <unk> delivered another strong quarter. The <unk> continue to over deliver and sees one ore production continued its ramp up following commercial production and crusher commissioning early in the fourth quarter of 2024.

Ankit Shah: Slide four highlights some of the key accomplishments during the second quarter. Through the first half of 2025, we have made excellent progress on advancing and completing many of the objectives presented at the beginning of the year. Safety, highlighted by a purge to care culture, continues to be a focus and strength for the company. During the quarter, we delivered a low total reportable injury frequency rate of 0.82, continuing the downward trend over the last three years. New Afton was awarded three safety awards during the second quarter for exemplary safety performance in 2024. The awards received included the J.T.

At new atton sustaining capital is primarily related to mobile equipment. While growth Capital, primarily related to construction growth, Mine Development, tailings, and machinery, and equipment.

Through the first six months of the year production represented approximately 54% from 49% of the midpoint of guidance of 60000 to 70000 ounces of gold and 50 to 60 million pounds of copper respectively.

At Rainy River. Sustaining capital is primarily related to open pit stripping and tailing facility expansion while growth Capital related to underground development and machinery and equipment.

Turning to the assets.

Other than the first half guidance provided in February due to the <unk> outperformance.

Ankit Shah: Ryan Regional Award for British Columbia and Yukon, British Columbia's safest large underground mine, and British Columbia's Mine Safety Innovation Award.

The <unk> is now expected to exhaust in the middle of the third quarter.

Starting with Newton on slide 7, new Aspen delivered, another strong quarter, the B3 cave continued to overdeliver and seize zone or production continued, its ramp up following commercial production and Crusher commissioning. Early in the fourth quarter of 2024,

Annual production is expected to be in line with the guidance profile previously provided.

Ankit Shah: In the second quarter, New Afton also won British Columbia's Underground Mine Rescue Championship, and the Rainy River Mine won Thunder Bay District Mine Rescue Championship, a true testament to our commitment to health and safety. During the quarter, the company produced approximately 78,600 ounces of gold and 13.5 million pounds of copper at an all-in sustaining cost of $1,393 per ounce. Gold production for the first half of the year was about 38% of the midpoint of the consolidated production guidance range of 325 to 365,000 ounces of gold, consistent with the plan 38% stated in the February outline.

With increased production at lower cost, new Afton generated an impressive $33 million in free cash flow.

While continuing to complete the construction of the C Zone block cave.

Through the first 6 Months of the Year production represented, approximately 54% and 49% of the, midpoint of guidance of 60,000 to 70,000 oz of gold, and 50 to 60 million pounds of copper respectively.

Through the first half of 2025, new Afton has generated over $85 million in free cash flow in terms of development. The C Zone cave construction continues to advance on schedule.

Higher than the first half guidance provided in February, due to the B3 outperformance.

The B3 cave is now expected to exhaust in the middle of the third quarter.

and annual production is expected to be in line with the guidance profile previously provided

<unk> was completed in May which consisted over the last stage of production blasting and mucking.

<unk> was a significant milestone achieved in the development timeline chief construction progress is 64% complete as of the end of June.

with increased production at lower cost, new atton generated an impressive 33 million in free, cash flow.

Ankit Shah: The company generated more than $163 million in cash flow from operations and achieved a record of $63 million in free cash flow. Rainy River also reported a quarterly record of $45 million in free cash flow.

While continuing to complete the construction of the sea zone, block cave.

<unk> remains on track to ramp up to full processing capacity of approximately 16000 tonnes per day beginning in 2026.

Ankit Shah: The company made significant progress on initiatives aligned with its three year production growth and accomplished several key milestones during the quarter. At New Afton, C-Zone cave construction is now approximately 65% complete, supporting the progressive increase in processing rates towards the target of 16,000 tons per day by early 2026. An important development milestone was also achieved in May with the completion of undercutting, unlocking the remaining extraction drives for development and construction. At Rainy River, the PIP portal breakthrough was achieved in early April. Subsequently, completion of the ODM east ventilation loop and commissioning of the fresh air arrays were accomplished later in the quarter.

Through the first half of 2025, new aen, has generated over 85 million in free, cash flow in terms of development, the sea zone cave, construction continues to advance on schedule.

Turning now to rainy river on slide eight.

Gold production in the second quarter was 61600 ounces of gold at an all in sustaining cost of $1696 per gold ounce sold.

Undercutting was completed in May, which consisted of the last stage of production, blasting and mocking.

And was a significant Milestone achieved in the development timeline cave. Construction, programs is 64% complete as of the end of June.

The first six months of production represented approximately 34% of the midpoint of guidance of 265000.

295000 ounces of gold slightly behind the first half guidance of 37%.

Zone remains on track to ramp up to full processing capacity of approximately, 16,000 tons per day. Beginning in 2026,

Turning now to Rainy River on slide 8.

This is driven by a one week delay in the sequencing of the higher grade open pit material.

Which led to an increase of approximately 5900 ounces of gold in circuit inventory at the end of the quarter.

Ankit Shah: These key milestones are expected to facilitate increased underground development and production.

gold production in the second quarter was 61,600 oz of gold at an all-in sustaining cost of 1,696 per goal down sold

Ankit Shah: Our exploration initiatives made significant progress during the quarter, highlighted by record activity at New Afton. Following the completion of the C-Zone extraction level exploration drift, current efforts are concentrated on K-Zone. At Rainy River, work is advancing on the Northwest Trend open pit zone, as well as upgrading the underground ore inventory.

What this effectively means is remind and process. The 5900 ounces, but were unable to port into our final product by the quarter end, which would have translated to a consolidated production of approximately 84000 ounces of gold.

The first 6 months of production represented, approximately 34% of the midpoint of guidance of 265,000 to 295,000, oz of gold slightly behind the first half guidance of 37%.

Production was substantially higher than the first quarter as we successfully transitioned from stockpile ore and start processing the higher grade open pit.

This is driven by a 1-week delay, in the sequencing of the higher grade open pit material in May

Ankit Shah: We plan to provide an exploration update in September.

Ankit Shah: In April, it was announced that New Gold would acquire the remaining 19.9% free cash flow interest at New Afton, consolidating our interest to 100%. In summary, we achieved the planned objectives for the first half of 2025 with a continued focus on generating meaningful value for our shareholders.

Or.

which led to an increase of approximately 5,900 ounces of golden circuit inventory, at the end of the quarter,

As I had mentioned at the top of the call June was a record production month with over 37300 ounces produced.

At an average grade of 144 grams per tonne.

But we're unable to Port into our final product by the quarter end.

The mill also demonstrated the ability to process higher grade material at high throughput rates with over 40% of the days in June processing over 30000 tons per day.

Travis Murphy: With that, I will now turn the call over to Travis. Thank you, Ankit. I'm on slide six, which has our operating highlights. As Ankit noted, Q2 delivered production and costs on plan. Production totaled approximately 78,600 gold ounces and 13.5 million pounds of copper. This increase in gold production compared to Q2 2024 was driven by planned higher feed grade at Rainy River, partially offset by lower planned feed grade at New Afton. Consolidated all-in sustaining costs for the quarter were $1,393 per gold ounce on a by-product basis, in line with Q2 2024, but a substantial improvement over the first quarter of 2025.

Which would have translated to a Consolidated production of approximately 84,000 oz of gold.

Production was substantially higher than the first quarter as we successfully transition from stockpile or and start processing the higher grade open pip.

As a result of the increased production rainy river generated a quarterly record $45 million in free cash flow.

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As an mentioned at the top of the call, June was a record production month with over. 37,000 3000 Oz produced.

Following the successful breakthrough of the Pip portal in early April the rainy River underground mine achieved another important milestone with fresh air raised commissioning and the completion of the ODM East ventilation loop.

At an average grade of 1.44 grams per ton.

Underground development and stope production from several new mining zones to now progress as they come online in late 2025.

The mill also demonstrated the ability to process higher grade material at high throughput rates with over 40% of the days in June processing over, 30,000 tons per day.

To sum up we made excellent progress in the second quarter and remain on track to deliver our 2025 stated objectives.

As a result of the increase production Rainy, River generated a quarterly record 45 million dollars in free, cash flow.

Travis Murphy: Costs will continue to trend down throughout the year as production increases. New Afton delivered an excellent order as the B3K continued to over-deliver compared to the plan set out at the beginning of the year. As a result, New Afton achieved an all-in sustaining cost of negative $537 per ounce after considering the copper credit. Rainy River delivered on plan as a mill transitioned from low grade stockpile material to processing higher grade open pit ore. All in sustaining costs were $1,696 per ounce in the quarter, a substantial improvement compared to the first quarter. Costs should continue to trend lower throughout the year as production ramps up.

With that I will turn the call over to Keith.

Yes.

Thanks Travis.

Our financial results can be found on slide 10.

Following the successful breakthrough of the pit portal in early. April the Rainy River underground. Mine achieved. Another important Milestone with fresh are raised commissioning and the completion of the odm East ventilation Loop.

Second quarter revenue was $308 million higher than the prior year quarter due to higher gold prices and gold sales slightly offset by lower copper prices and sales.

underground development and Stow production from several new mining zones to now progress as they come online in late 2025

Cash generated from operations before working capital adjustments was $161 million or <unk> 20 per share for the quarter higher than the prior year period, primarily due to higher revenues.

To sum up, we made excellent progress in the second quarter and remain on track to deliver our 2025 stated objectives.

With that, I'll turn the call over to Keith Keith.

Thanks Travis.

New gold generated record quarterly free cash flow of $63 million as higher revenue was only partially offset by the higher capital expenditure as key growth projects advance.

Our financial results can be found on slide 10.

The company recorded net earnings of approximately $68 million or <unk> <unk> per share during the second quarter.

Travis Murphy: Our total capital expenditures for the quarter are approximately $92 million, with $34 million spent on sustaining capital and $58 million spent on growth capital. At New Hampton, sustaining capital is primarily related to mobile equipment, while growth capital primarily related to construction, growth, mine development, tailings, and machinery and equipment. At Rainy River, sustaining capital is primarily related to open pit stripping and tailings facility expansion, while growth capital related to underground development, machinery and equipment.

Next water Revenue was 308 million higher than the prior year of water due to higher gold, prices and gold sales, slightly offset, by lower copper prices and sales.

After adjusting for certain charges net earnings was $19 million or <unk> 11 per share in Q2.

Cash generated from operations before working capital adjustments was 161 million or 20 cents per share for the quarter higher than the prior year period primarily due to higher revenues.

Q2, adjusted earnings include adjustments related to other gains and losses and other nonrecurring items.

Turning to our balance sheet on slide 11.

At the end of Q2, we had cash on hand of $226 million and a liquidity position of $452 million.

New goal, generated record quarterly, free cash flow at 63 million. As higher Revenue was only partially offset by the higher capital expenditure. As key growth projects were advanced

Post quarter, the remaining $111 million of the 2027 senior notes was redeemed as planned and previously announced unpaid forward cash in hand.

the company recorded, net earnings of approximately 68 million or 9 cents per share during the second quarter.

After adjusting for certain other charges, net earnings was 90 million or 11 cents per share in Q2.

Travis Murphy: Turning to the asset.

In order to fund the new Afton buyback transaction announced back in April.

Travis Murphy: Starting with New Afton on slide seven. New Afton delivered another strong quarter. The B3 cave continued to over deliver and C zone ore production continued its ramp up following commercial production and crusher commissioning early in the fourth quarter of 2024. Through the first six months of the year, production represented approximately 54% and 49% of the midpoint of guidance of 60,000 to 70,000 ounces of gold, and 50 to 60 million pounds of copper respectively, higher than the first half guidance provided in February due to the P3 outperformance. The B3 cave is now expected to exhaust in the middle of the third quarter and annual production is expected to be in line with the guidance profile previously provided.

A Q2 adjusted earnings included, adjustments related to other gains and losses and other non-recurring items.

Third $50 million of the credit facility was drawn in deepwater Angola repayment was entered into in mid April.

Turning to our balance sheet on slide 11.

The company has agreed to deliver approximately 2770 ounces of gold per month over the July 2025 to June 2000, 2006 period at an average price of $3157 per gold ounce.

At the end of Q2, we had cash on hand of 226 million and a liquidity position of 452 million.

Post quarter the remaining 111 million of the 2027, senior notes was redeemed as planned, and previously, announced and paid for with cash in hand.

To sum up we are in a very healthy financial position with a significant free cash flow profile Adams.

In order to fund the new house and buy back transaction announced back in April.

With that I'll turn the call to Pat.

Thanks Keith.

1500 million of the credit, facility was drawn in the quarter and a goal prepayment was entered into in mid April.

Launching and as Bruce will briefly I'm on slide 30.

The new ophthalmic solution program centered on Kieselmann nearby targets is currently.

I'll hold on an all time high with Formosa offerings drill targeting accusing term along strike and six underground drills actively targeting the core of the zone.

Travis Murphy: With increased production at lower cost, New Afton generated an impressive $33 million in free cash flow. while continuing to complete the construction of the C-Zone Block Cave.

The company has agreed to deliver approximately 2,770 ounces of gold per month over the July 2025 to June 2026 period at an average price of 3,157 per gold outs.

This needs footprint.

To sum up, we are in a very healthy financial position with a significant free cash flow profile ahead of us.

The seasonal level exploration drift completed into this one level and completed last year, we know.

With that, I'll turn the call to 5.

Travis Murphy: Through the first half of 2025, New Haven has generated over 85 million in free cash flow. In terms of development, the C-Zone cave construction continues to advance on schedule. Undercutting was completed in May, which consisted of the last stage of production blasting and mucking. and was a significant milestone achieved in the development timeline. Cave construction progress is 64% complete as of the end of June. C-Zone remains on track to ramp up to full processing capacity of approximately 16,000 tons per day beginning in 2026.

Thursday.

This person briefly. I'm on slide 30.

The normal two distinct proportion group submitted by more than Florida meter inhibition to better explore and infield zone.

I'm trying to remember all the companies are advancing open pit and underground exploration in parallel.

During Q2. This include drilling the noteworthy trend opens the zone to <unk> part of the inferred resources and this potential.

The new office version program centered on keys. On a nearby Target is currently at a halt, an all-time high with 1 surface drill targeting. The keys on Trend, along strike and 6 on the ground drills, activity targeting, the core of the zone and test testing its footprint

Pension.

Exploration drilling also focused on building on the more global Fortune <unk> mean from surface.

We continued our work on open pit extension studies with the goal of keeping the mill fully through.

Travis Murphy: Turning now to Rainy River on slide 8. Gold production in the second quarter was 61,600 ounces of gold at an all in sustaining cost of $1,696 per gold ounce sold. The first six months of production represented approximately 34% of the midpoint of guidance of 265,000 to 295,000 ounces of gold, slightly behind the first half guidance of 37%. This is driven by a one week delay in the sequencing of the higher grade open pit material in May, which led to an increase of approximately 5,900 ounces of gold in circuit inventory at the end of the quarter.

With the season level exploration to have complete in the left, 1 level of dream completed last year. We now have, we now have 2. Distinct explosion drift supervised by more than 400 meters in elevation to better explore and infill his own.

As for longer.

Additional studies on Hulu all Marine these arguments. In addition also continued to make progress.

And whenever the company is advancing open, pit and underground explosion in parallel.

As I have said previously we expect continued in symptom broke in Golden Gulf Operation over the next three years. The second quarter performance was an excellent indication of the expected.

During Q2 this include drilling the Northwest trend of Olympic Zone to infill part of the inferred resources and the test potential pit extension.

Expiration during also focused on testing on the level of growth opportunity at odm Maine from surface.

To come.

As production volumes increase the new customer on a single goal is projected to decrease some since Cindy.

We continue with our work on open pit. Extension studies with the goal of keeping the mill fully through utilized for longer.

As a result, we continue to expect to generate significant free cash flow over the next three years.

As shown studies on the level of Mind design in that sensation. Also continued to progress

Current consensus commodity prices.

This translated to approximately $1 6 billion and free cash flow over that period.

Travis Murphy: What this effectively means is we mined and processed the 5,900 ounces, but were unable to pour it into our final product by the quarter end, which would have translated to a consolidated production of approximately 84,000 ounces of gold. Production was substantially higher in the first quarter as we successfully transitioned from stockpile ore and started processing that higher grade open pit ore. As Ankit mentioned at the top of the call, June was a record production month with over 37,300 ounces produced. at an average grade of 1.44 grams per ton. The mill also demonstrated the ability to process higher grade material at high throughput rates, with over 40% of the days in June processing over 30,000 tons per day.

Can grow and gold and cover, pollution over the next few years.

Current spot prices that figure exceeds $2 5 billion.

The second quarter performance was an excellent indication of the expected trajectory to come.

Over 70% to 70% of our market cap.

In closing the second quarter was positive for the gold as we continue to deliver on our students throws or goals.

As pollution values increase, the unique customer also of gold is projected to decrease substantially.

As a result, we continue to expect to generate significant free, cash flow over the next 3 years.

We'll continue to build on these goals for Amir.

At current consensus commodity prices.

This includes delivering on 2020 of our production and cost.

Guidance was the same attention to elephant safety.

Our continuous improvement with our <unk> performance is a direct in Q3 of the support from our employees and colleagues, Florida occurrence of the peer group.

This translate to a proximate fee, 1 point, it is 6 billion US and free cash flow over that period at current spot prices. The figure exceeds 2.5 billion over 75 to 70% of our market cap.

At New Afton, we will ramp up <unk> and advance the development of East extension.

In closing, the second quarter was positive for your gold as we continue to deliver on our status strategic goals.

We will continue to ramp up the underground vein mining crews for an amendment speeds by will open pit development.

We will continue to build on these goals from here.

Travis Murphy: As a result of the increased production, Rainy River generated a quarterly record $45 million in free cash flow.

Lastly, we are continuing to increase our solution affords of bauxite.

This include delivering on 2025 production in Cut, Guidance with the same attention to health and safety.

Travis Murphy: Following the successful breakthrough of the PIP portal in early April, the Rainy River underground mine achieved another important milestone with fresh air raised commissioning and the completion of the ODM East ventilation loop. Underground development and snow production from several new mining zones can now progress as they come online in late 2025.

Combined $3 million of investment for 2025 targeting for Torrey Reserve replacement.

our continuous improvement with our treasury performance is a direct indicator of the support from our employees and colleagues, for the courage of the Care culture,

New gold offers a compelling investment opportunities with.

With increasing production and symptom free cash flow generation combined with our suite with established <unk> Richardson.

Will ramp up season in advanced development of this extension.

Increasingly compelling exploration upside and exposure to what we view as prefer nickel and gold and copper.

We will continue to ramp up the underground. Main mining phase 4 in advanced Phase 5 open pit development.

Travis Murphy: To sum up, we made excellent progress in the second quarter and remain on track to deliver our 2025 stated objectives.

We were confident in our ability to deliver additional upside.

Keith Murphy: With that, I'll turn the call over to Keith. Thanks, Travis. Our financial results can be found on slide 10. Second quarter revenue was $308 million, higher than the prior year quarter due to higher gold prices and gold sales, slightly offset by lower copper prices and sales. Cash generated from operations before capital adjustments was $161 million, or $0.20 per share for the quarter, higher than the prior period, primarily due to higher revenue. New Gold generated record quarterly free cash flow of $63 million, as higher revenue was only partially offset by the higher capital expenditure as key growth projects were advanced.

The remainder of 2025, we will continue to build from here.

Lastly, We are continuing to increase our version efforts at both sides, if a company million dollars of investment for 2025, targeting for to reserve replacement.

Both operationally as well as project and exploration covenants, which is expected to create meaningful value for shareholders and provide increased financial flexibility and optionality for new goal moving forward.

New gold offers compelling investment opportunities.

With increasing production and sinking free cash flow generation combined with our safe will establish minions restriction.

This concludes our presentation and we'll now turn it back to the operator for the Q&A portion of the call Charlie.

Increasingly compelling, exploration outside and exposure to what we view as preferable in gold and color.

We were confident in our ability to deliver additional water.

Thank you if you have a question. Please press star one on your telephone keypad, if you wish to remove yourself from the queue simply press Star One again one moment. Please for your first question.

Remainder of 2025 will continue to go from here.

Your first question comes from the line of Lawson Winder of Bank of America. Your line is open.

Keith Murphy: The company recorded net earnings of approximately 68 million or nine cents per share during the second quarter. After adjusting for certain other charges, net earnings was $90 million or $0.11 per share in Q2.

Both professionally as well as project expiration Catalyst which is expected to create meaningful value, power shoulders, and providing increased Financial flexibility, in nationality, for new role. Moving forward.

Thank you very much operator, Hello, gentlemen, thank you for the update.

Today can I, please start off by asking for a little additional color on the split in production between Q3 and Q4 of 2025. Thank you.

This completes our presentation, I will now turn it back to the operator for the Q&A portion of the call Charlie.

Keith Murphy: Our Q2 Adjusted Earnings include adjustments related to other gains and losses and other non-reoccurring items. Turning to our balance sheet on slide 11. At the end of Q2, we had cash on hand of $226 million and a liquidity position of $452 million. Post-quarter, the remaining $111 million of the 2027 senior notes was redeemed, as planned and previously announced, and paid forward cash in-hand.

So we're mostly an chewed through Q4, we are targeting throughout the same promotion mostly.

Thank you. If you have a question, please press star 1 on your telephone keypad, if you wish to remove yourself from the queue simply press star 1. Again 1 moment, please for your first question.

And is that consistent across both rainy and.

Your first question comes from the line of Lawson were of Bank of America. Your line is open.

In terms of gold.

Yes, so in terms of Goldman small fees, yes.

<unk> will will generate the majority of the cash because we produce a lot of of gold are slow and we were ramping up.

Uh, thank you very much, operator. Hello gentlemen. Thank you for the update. Uh today, could I please start off by asking for a little additional color on the split in production between Q3 and Q4 of 2025? Thank you.

Keith Murphy: In order to fund the new Afton buyback transaction announced back in April, $150 million of the credit facility was drawn in the quarter and a gold prepayment was entered into in mid-April. The company has agreed to deliver approximately 2,770 ounces of gold per month over the July 2025 to June 2026 period at an average price of 3,157 per gold ounce.

So with the results.

And we will ramp up zone.

so we're mostly in Q3 Q4, we are targeting to have the same potion mostly

C zone.

So we still target to presume the nickel that we forecast in the guidance.

Okay.

With regards to reserves and resources.

Looking toward year end.

First of all I guess, just generally do you expect to replace reserves in 2025, and then a little more specifically with the northwest trend.

Keith Murphy: To sum up, we are in a very healthy financial position with a significant free cash flow profile ahead.

Is and is that consistent across both rainy and uh, new Mountain in terms of gold? We have yes in term of gold is mostly, yes, rainy will will generate the majority of the, of the cache because we will will produce a lot of of gold as planned. And we're ramping up new atoms. So we'll exhaust the the cave.

Resource conversion to indicated do we expect that to show up in reserves and resources and then just thinking about <unk>.

Unknown Executive: With that, I'll turn the call back. There is a gate.

Unknown Executive: Touching on this person briefly, I'm on slide 30. The new Afton Exploration Program centered on Keyzone and nearby targets is currently at an all-time high, with one surface drill targeting the Keyzone trend along strike and six underground drills actively targeting the core of the zone and testing its footprint. With the T-Zone level exploration drift complete, and the Lift-1 level completed last year, we now have two distinct exploration drifts separated by more than four meters in elevation to better explore and fill T-Zones. At Renewaver, the company is advancing open pit and underground exploration in parallel. During Q2, this includes drilling the northwest trend open pit zone to infill part of the inferred resources and test potential pit extension.

And we will ramp up his own and as, and see on the the so we still Target to produce the little that we forecast in the guidance.

<unk> price assumption year end 2024 was $16 50 were nearly double that now 1980, I think you guys use for resources.

Or are you thinking about a gold price assumption for calculating reserves and resources at year end.

Yes, so first though.

<unk>.

Winter months.

In terms of new often in term of reserve renewal, we our target for this year as we discussed was to increase our wounds given resources intimately to produce.

Probable reserve or feasibility studies the.

<unk> two.

The sufficient drilling room to convert resources and reserve in studies in 2026, So that's what we plan.

Uh, okay. Um, with regards to, uh, reserves and and resources, uh, just just looking toward year end. And, um, first of all, I guess just generally do you expect to replace reserves in 2025 and then and then a little more specifically with the Northwest Trend. Uh, resource conversion to indicated. Do we expect that to show up in, uh, reserves and and resources? And then just thinking about gold price? Assumption year, end 2024 was 1650. Where nearly double that now 1980? I think you guys used for resources. Um, how are you thinking? About a, a gold price assumption for calculating reserves and, and resources at your end?

Sure.

Concerning the.

yeah, so first the in the

Rainy River.

<unk> is to define the definition drilling to reclassify noteworthy strength.

Unknown Executive: Exploration Building also focused on testing underground ore growth opportunity at ODM Main from surface. We continued our work on open pit expansion studies with the goal of keeping the mill fully utilized for longer. And Sean's studies on online design and application also continue to make progress. As I have said previously, we expect continued and significant growth in gold and copper pollution over the next three years. The second quarter performance was an excellent indication of the expected trajectory to come. As production volumes increase, the unit cost per ounce of gold is projected to decrease subsistently. As a result, we continue to expect to generate significant free cash flow over the next three years.

And to transfer loving reserves.

In term of the, in term of new options in term of reserve a new role. We are Target for this year as we discussed was to increase our insulated resources, and Timothy to produce.

And also we have some excellent targets on the ground, but we will.

We explain.

In February as our objective is to.

The increase in reserves on the wrong, where we plan to we already planned to open four centers to reduce the capex and increases the any deepwater company in virtual needs. What we are doing so.

6. So it's what we plan for, in concerning the uh,

I don't think that that's really revert to be objective and rational that we will renew the totality of what we mined but we will it will be significant for us.

Rainy River. Uh, the intent is to to Define complete the definition building to 3 classify Northwest trend.

And and to transfer that in reserve. So it's our objective. And also, we have some excellent Targets on the ground that we will, uh, as we explained.

So for one thing second thing concerning the.

uh, in in February is our objective is to uh,

The gold price. So every year, we're benchmarking of our peers with our peers were doing so well.

Unknown Executive: Current Consensus Committee Prize. This translates to approximately $1.86 billion U.S. in free cash flow over that period. At current spot prices, the figure exceeds $2.5 billion, over 70% of our cap.

With lump coming out coming from from for the corner office, along this year, we're going to use this voice.

But basically for Sherwood recurring consensus the approach.

Calculations on slide <unk>, we have a high probability that it will increase.

So maybe turning around 19 onward to 2000 per bottle is something that is actually the trend that the industry is looking up so but <unk>.

Unknown Executive: In closing, the second quarter was positive for New Gold as we continue to deliver on our stated strategic goals. We will continue to build on these goals from here. This includes delivering on 2025 election and got guidance with the same attention to health and safety. Our continuous improvement with our preferred performance is a direct indicator of the support from our employees and colleagues for the courage of the caricature. At New Harpin, we will ramp up C-Zone in advance of the development of East Extension. At Rainy River, we will continue to ramp up the Underground Main, Mining Phase 4, and Advanced Phase 5 open pit development.

Increase reserves on the ground where we plan to already. We already plan to have infrastructure to reduce the capex and increase the NAD for the company, and actually, it's what we are doing. So it's, uh, yeah, I don't think that that, when you revert to be objective and rational that we will renew the totality of what we mind, but we will, it will be a significant for us. It's been the so for 1 thing. Second thing concerning the, uh,

We will look for.

Third quarter 'twenty rivers, so it's going to it can provide some good value for shareholders.

The gold price. So every year with benchmarking of our peers, what our peers are doing, so it's uh, it's not coming out coming from, from, for the corner office, or August here. We're going to use this price.

Okay.

Thanks for that and then if I could just squeezing one more questions thinking about your capital allocation priorities.

<unk>.

Strong expected inflection higher and free cash flow.

Is there any thought to.

But basically, for sure, with the current consensus, the price for for Reserve, calculation outside people, we have a high probability that it will increase. Uh so maybe turn around 1900 to 2,000, probably it's something that is actually the trend that the industry is looking at

Being active.

Putting in place a buyback.

Thought about a dividend where the priorities vis vis <unk>.

so, but basically it's uh, what we look for, but when you're at at training reverse, so it's going to, it can provide something can value for shareholders

Those two options and debt repayment and then if you could just talk.

Unknown Executive: Lastly, we are continuing to increase our exploration efforts at both sides with a combined $30 million of investment for 2025, targeting for third reserve replacement.

Comment on.

Yeah.

Thoughts on acquisition. So so does it remain a strategic objective to add a third core asset. Thank you.

And Austin and think it.

Unknown Executive: New Gold offers a compelling investment opportunity with increasing production and simple free cash flow generation combined with our safe, well-established mining jurisdiction. Increasingly compelling exploration upside and exposure to what we view as prefer metal and gold and copper. We were confident in our ability to deliver additional. The remainder of 2025 will continue to build from here, both operationally as well as project and exploration catalyst, which is expected to create meaningful value for our shoulders and provide increased financial flexibility and optionality for New Gold moving forward.

No shareholder returns are definitely something that we evaluate in the near term right now I guess Keith mentioned, we ended the year with just over 200 of cash.

Subsequent to quarter, we pay down the debt from.

From the original bond offerings, we are bringing down our cash balance we saw a $150 million on our credit facility that we expect to pay by the end of the year and we are also ramping up to significant projects, but to seize on the underground vein sorry, the underground development plus our exploration program.

Okay. Uh, thanks for that. And then if I could just squeeze in 1. More question, thinking about your Capital, allocation priorities, uh, Visa V the, uh, very strong expected, inflection, higher in free cash flow. Um, is there any thought to, um, um, putting in place a buyback. Uh, thought about a dividend where are the priorities Visa V? Uh, those 2 options and debt repayment and then, if you could just, uh, comment on, um, your uh, thoughts on acquisition. So, so does it remain a strategic objective to add a third core asset? Thank you.

So back half weighted so I would say for 2025, and our focus is very internal and organic and as we hit this free cash flow inflection point and kind of come towards the end of the year and that will be something that shareholder returns will be definitely top of mind in terms of M&A.

Unknown Executive: This completes our presentation.

Operator: I will now turn it back to the operator for the Q&A portion of the call. Shall we? Thank you.

I think as Pat mentioned on previous calls.

Operator: If you have a question, please press star one on your telephone keypad. If you wish to remove. Star One Again.

I think we did our best transaction with a consolidated new afton over the last year, we are able to consolidate an assay that we own at sub one times to have in a rising gold price environment. We will continue to evaluate other opportunities assuming they improve the profile of new gold.

Operator: One moment, please.

Lawson Winder: Your first question comes from the line of Lawson Winder of Bank of America. Your line is open. Thank you very much, Operator. Hello, gentlemen. Thank you for the update. today.

Hey Austin. It's an it. Um, no shareholder. Returns are definitely something that we evaluate in the near term. Right now, I think as Keith mentioned, we end of the year, which is over 200 of tasks, uh, subsequent to quarter. We paid down the debt, um, from the original Bond offer and so bringing down our cash balance. We still have 150 million on our credit facility that we expect to pay by the end of the year. Um and we all are also ramping up 2 significant projects with the c Zone and the underground main uh sorry the underground development plus our exploration program um is also back half weighted. So I would say for 2025 our focus is very internal and organic um and as we hit this free cash,

Based on our internal criteria and it's something that we always evaluate that we'll be very prudent in our M&A strategy.

Lawson Winder: Can I please start off by asking for a little additional color on the split in production between Q3 and Q4. So we're mostly in Q3, Q4. We are targeting to have the same portion mostly.

Okay fantastic, thanks, very much guys.

Your next question comes from the line of Michael Super call of RBC capital markets. Your line is open.

Okay. Thanks, very much guys a quick question.

On new Afton.

With abuse, one being extended can you just clarify on how we should expect the transition to primary C zone mining to go in.

Unknown Executive: Is that consistent across both Rainy and New Afton in terms of gold? Yeah. So in terms of gold, it's mostly yes. Rainy will generate the majority of the cash because we produce a lot of gold as planned. And we're ramping up New Afton. So we'll exhaust the B3 cave and we will ramp up C-Zone. And C-Zone, so we still target to produce the metal that we forecast in the guidance.

Selection point and kind of come towards the end of the year. Um, that will be something that the Cheryl returns will be definitely top of Mind in terms of m&a. Um, I think it's Pat's mentioned on previous calls. Um, I think we did our best transaction with a consolidating, new eitan over the last year, able to consolidate an asset that we owe, and its sub 1 times nav and a rising Global price environment we will continue to evaluate other opportunities. Um assuming they improve the profile of new gold um based on our internal criteria, so that's something that we always evaluate but we'll be very prudent in our m&a strategy.

Okay, fantastic. Thanks very much, guys.

Is there a transition period or should we just see a smooth uptake and throughput.

And great and sort of when does that manifest.

Your next question comes from line of Michael superco of RBC Capital markets. Your line is open.

In the second half.

<unk> global so these reviews.

Hello.

We are really pleased and by what is happening in vitry because as the result of the disciplined drama and <unk> that we are having in front of us. So.

Unknown Executive: Okay, with regards to reserves and resources, just looking toward year-end...

So we always plan for the worst and wish for the best.

Unknown Executive: First of all, I guess just generally, do you expect to replace reserves in 2025 and then a little more specifically with the Northwest trend resource conversion to indicated, do we expect that to show up in reserves and resources? And then just thinking about gold price assumption, year-end 2024 was $1650, we're nearly double that now, $1980 I think you guys used for resources. How are you thinking about a gold price assumption for calculating reserves and resources at year-end?

And thermo to reward employees was the beach reuse, we will reconcile extremely well.

Yeah, thanks. Thanks very much. Uh guys. Uh, quick question on new a and um, with the bone being extended can you just clarify on how we should expect the transition to primary seizoen mining to go? And is there a transition period or, or should we just see a smooth uptick in throughput uh, and and grade and, and sort of when does that that manifest uh, in in the second half,

So and we are working because of the dilution is actually better than expected so going forward.

in terms of the, the Soviet tree is

It's excellent and degree that's good for us in just the latencies in term so that we will not be <unk>, but it will extend the mine local <unk>.

You know, it's for for us we are really pleased and and buy what is happening at in B3, because it's the result of the discipline draw management of the B that we are having in front of us.

The other small tonnage coming from BTG.

So, we always plan for the worst and wish for the best.

In the beginning of <unk> just wanted to remind to you Michael that we are at war.

Unknown Executive: Yeah, so first, in the In terms of new options, in terms of reserve a new role, we our target for this year, as we discussed, was to increase our indicated resources, ultimately to produce a probable reserve or feasibility study. That's the main purpose is to have the sufficient drilling ground to convert resources in reserve and studies in 2026. So it's what we plan for in terms of concerning the Rainy River. The intent is to define, complete the definition building to pre-classify Northwest trend and to transfer that in reserve. So it's our objective.

Plan like this and all the bottom part of <unk>.

And in term actually, what is nice with the B3 is we, we will reconcile extremely well.

Looking over to intermodal recoveries, though the agreed in the Everglades is lower than the agreed in the lower <unk> zone is lower than the average grade.

The blockade by itself, it's flat with what we have in our plan. That's what we planned in the middle metal produced in 2025.

We are sticking to our plan, mostly so basically as we were not expecting due to the good news that we are extending the mine level III to change our little production guidance for <unk>.

But we at the beginning of season, I just want to remind you that we are.

As to and for US it's approved more than it comes and goes.

The way that we will accelerate the cave of seasonal it will be more flat than to be more aggressive in the center and lithium.

Unknown Executive: And also we have some excellent targets on the ground that we will, as we explained in February, is our objective is to increase reserves on the ground where we plan to already, we already plan to have infrastructures to reduce the capex and increase the NAV for the company and actually it's what we are doing. So I don't think that at Rainy River to be objective and rational that we will renew the totality of what we mined, but we will, it will be a significant for us. It's mainly, so for one thing.

On the wings of the of the block cave. So it means that we'll have a better video <unk> instruments looking forward. So it took some reports it's extremely positive for us to have additional tonnes from <unk>.

Okay great.

That makes sense.

Good contacts.

Sure.

One more question for me, if I kind of and then I'll pass it on.

On M&A broadly speaking I guess, the quarterly update if you can provide one.

Unknown Executive: Second thing concerning the The gold price, every year we're benchmarking of our peers, what our peers are doing. So it's where it's not coming out coming from, from for the corner office. So obviously, we're going to use this price. But basically, for sure, with the current consensus, the price for core reserve calculation, we have a high probability that it will increase. So maybe turn around 1900 to 2000. Probably it's something that is actually the trend that we'll look for. But when you're at 20 reverse, so it's going to, it can provide some value for sure.

With the consolidation of new Afton.

Now out of the way.

And also the.

It was planned like this and all the bottom part of season, we localize that to customize the recovery. So the grade the average grade is lower than the, the grade on the in the lower part of season is lower than the average grade of, of the, of the blockade by itself. Its plan is what we have in our plan. It's what we plan in the middle middle produce in 2025, and we're sticking to our plan mostly. So, basically is what we're not expecting due to the good news that we are. Extending the model for B3 to change our work little production guidance for 2, for 2025 with banga you have received is to. And for us it's a prose more than a cons because the way that we will accelerate the cave of season, it will be more flat than to be more aggressive in the center and less on the on, on, on the wings of the of the blockade. So it means that we'll have a better better drum management looking forward. So, it's like, some people, it's it's extremely positive for us to have additional times from beaches.

Think substantial organic growth potential at new Afton, which is set to maybe get some more visibility over the next six to 12 months how are you thinking about growth now.

Okay. Great. That uh, that makes sense. Puts it in good contacts. Um,

Versus maybe exiting Q1.

So while we did an excellent M&A in Q2 features.

It's something that really brought up.

And you will understand the short future why we were storing started to do this to consult with our own assets.

Both of those into the opportunity for us.

Unknown Executive: Okay, thanks for that.

Lawson Winder: And if I could just squeeze in one more question, thinking about your capital allocation priorities, vis-a-vis the very strong expected inflection higher in free cash flow. Is there any thought to being active or putting in place a buyback, thought about a dividend, where are the priorities vis-a-vis those two options in debt repayment, and then if you could just comment on your thoughts on acquisitions, so does it remain a strategic objective to add a third core asset?

And.

And actually those.

My colleagues, so that we focus on the organic growth versus what we can control.

1 more question for me. Uh, if I could and then I'll pass it on uh on m&a. Broadly speaking, I guess the the quarterly update. Uh, if you can provide 1, uh, but with the with the consolidation of of new Aston uh now out of the way H and and also the I think substantial organic growth potential at at new at which is set to maybe get some more visibility over the next 6, to 12 months. How how are you thinking about growth male uh versus maybe exiting q1?

And Thats, where we can generate a lot of value for shareholder with all of them.

A lot of capital to invest.

We are remaining are doomed it goes we're looking for opportunities within.

With regards to when that will generate great value for shareholders.

Oh, well first, we did an excellent m in Q2 with teachers. It's, it's, it's something that really brought us, uh, and you will understand the short future, why we were so excited to do this to consult with our own asset? I think it was the best or best in the opportunity for us.

If we don't we cannot promote them to listen on abortion do for shareholders without <unk>.

Lawson Winder: Thank you.

Through to return capital to them, but basically I think we are disciplined.

Uh, you know and um, and actually as uh my my colleague said we focus on the, you're going to grow first, it's what we can control.

Ankit Shah: Hi Lawson, it's Ankit. No, shareholder returns are definitely something that we evaluate. In the near term right now, I guess Keith mentioned, we ended the year with just over 200 of cash. Subsequent to quarter, we paid down the debt from the original bond offerings, so bringing down our cash balance. We still have $150 million on our credit facility that we expect to pay by the end of the year. And we are also ramping up two significant projects with the C Zone, the underground vein, sorry, the underground development, plus our exploration program, is also back half-weighted.

Well no I think Michael these are off the table. This morning, we are disciplined we don't want to be big to be big we wanted to be bigger to be better.

and it's where we can generate a lot of you for shoulder without without, without without, without

Without a lot of capital to invest.

So, we'll Baldwin who work so hard to generate this covered loan, but we used this cash flow that we don't want to put that at risk. So we are diligent in our approach, but we're still we're still with some looking were still active and we are good at it.

um, we are remaining active because, uh, we're looking for opportunities uh within that

Uh, with the cash flow that will generate, we can create value for shoulders.

If we don't we cannot provide an investment opportunity for shareholders. We have to us and get service to to return Capital to them but basically I think we are disciplined.

Ankit Shah: So I would say for 2025, our focus is very internal and organic.

Okay.

Ankit Shah: And as we hit this free cash flow inflection point and kind of come towards the end of the year, that will be something that shareholder returns will be definitely top of mind.

Thank you.

If you would like to ask a question again it is star one on your telephone keypad. Your next question comes from the line of Anita Soni of CIBC. Your line is open.

I'm having my colleagues around me at the table this morning and we are disciplined. We don't want to be big to be big, we want to be bigger to be better.

Ankit Shah: In terms of M&A, I think as Pat mentioned on previous calls, I think we did our best transaction with a consolidating new Afton over the last year, able to consolidate an asset that we own at sub one times NAV in a right angle price environment. We will continue to evaluate other opportunities, assuming they improve the profile of new gold based on our internal criteria. So that's something that we always evaluate, but will be very prudent in our M&A strategy. Okay, fantastic. Thanks very much, guys.

Hi, Good morning, Pat and team most of my questions have been asked and answered, but I just wanted to understand.

On rainy River I think you said there was a week delay in some of the high grade material on the open pit is the expectation that you'll get that back in the second half of the year.

And so we don't want to be a work so hard to generate this Capital that we this cash flow that we don't want to put that at risk. So we are diligent in our approach but we're still we're still we're still looking, we're still active and we are legitimate.

Yes, so we are and where we will we are still <unk>.

<unk> guiding to the of the guidance.

So we.

It will not change our guidance for a year.

Thank you. Uh, if you would like to ask a question again, it is star 1 on your telephone keypad. Your next question comes from the line of Anita Sony FC. IBC, your line is open.

Okay.

Gary.

Hi, good morning, Pat and team. Um, most of my questions have been asked and answered but I just want to

Sort of mid Atlanta.

Michael Siperco: Your next question comes from Michael Siperco of RBC Capital Markets. I think thanks very much, guys.

Youre expectations are still intact.

Yeah. So.

Quantifying those.

This is explained as we produce this all of these answers.

Understand. Um, on Rainy River I think you said there was a week delay in some of the high-grade material in the open pit is the expectation that you'll get that back in the second half of the year.

Michael Siperco: Quick question on New Afton. With the B zone being extended, can you just clarify on how we should expect the transition to primary C zone mining to go and Is there a transition period or should we just see a smooth uptick in throughput and grade and sort of when does that that manifest in the second half? Well, it was very well-deserved. So, G3 is a... You know, for us, we are really pleased by what is happening in B3, because it's the result of the disciplined drama management of the decade that we are having in front of us.

But we are not able to strip it from the sort of group at the end of the quarter since mainly wall oven.

yes, so we have we will we are still guys we still guiding to the the guidance and

Nothing is going to deliver what the year. So it was other <unk> solutions will biodiesel, but we expect to have this waterfall and in the second half of the year.

so we we, uh,

If we, it will not change our guidance for a year.

okay, and so you're still hearing, so,

And then can you just provide an update on what the next deliverables are.

Sort of middle end or or sort of like the original? Your expectations are still unpacked as well.

Yeah. So

For the cave zones.

When you expect to have an update on that.

what is time is, what my what what this has explained is we we produce this all these answers

So we want to do an update in the first half of September on all lowers Persian activities at both sites.

but you know, we're not able to strip it from the circuit at the end of the quarter. So it's mainly what happened.

And our objective.

What is interesting with geology, and it's more to drill for adding.

Unknown Executive: So we always plan for the worst and wish for the best. And in term, actually, what is nice with the B3 is we will reconcile extremely well. And so we are marking because the dilution is actually less than expected. So going forward, it's excellent and the grade is good for us. It just delays season in term of, we will not delay season, sorry, but it will extend my life of season by the additional tonnage that are coming from B3. But we, in the beginning of season, I just want to remind to you, Michael, that we are, it was planned like this and all the bottom part of season, we localize that to optimize the recovery.

If not, we're going to deliver what the, so it was not in a bar, it wasn't Solutions so badly. So but we expect to have this that with waterfall in in in the second half of the year.

Adding value both our objective is to too as much as we can to over two presented for the first moment, we scheduled the inferred resources in key zone $4 2 billion for the reserve and resource report of 2006.

And then can you just provide an update on what what the next deliverables are? Uh for the K Zone? Um like when you expect to have an update on that,

Okay, alright, thanks, and congratulations on the strong results.

On September on all our exploration activities that both sides.

Thank you very much.

Your next question comes from the line of Mohamed <unk> of Citibank. Your line is open.

Thanks, Patrick and Tim for taking my question.

My questions have been answered, but just following up on rainy River and the strong performance in June with the 37000 ounces or $1 44 grams per tonne can you maybe give us some color into the grade profile into the second half of the ERP. Thank you.

Unknown Executive: So the grade, the average rate is lower than the grade in the lower part of season is lower than the average rate of the blockade by itself. It's planned. It's what we have in our plan. It's what we plan in the metal produced in 2025. And we're sticking to our plan mostly. So basically is what we're not expecting due to the good news that we are extending the mile up of B3 to change our metal production guidance for 2025. We're bang on. The other thing is to, and for us, it's a pros more than a cons because the way that we'll accelerate the cave of season, it will be more flat than to be more aggressive in the center and less on the, on the wings of the, of the blockade.

Uh, and our objective, uh, you know, is because what is interesting? Geology is more the drill for the adding value. But our objective is to to as much as we can to to to present for the first time and indicated, that inferred resources and key Zone. 4 point. The biggest for the reserve and resource report of 2026.

Okay. All right. Uh, thanks and congratulations on a strong result.

Yes, so the group profile for the second half of the year.

Thank you very much.

Yes.

Yes, so with the transition.

Your next question comes from the line of Muhammad. Uh, Sid died of City Bank, your line is open.

To that steady feed grade that we've seen in June we can expect and similar high profile.

Similar grade profile in the back half of the year in order to to comment to that guidance range and the majority of the fee just as a reminder is coming from the open pit.

Uh, thanks Patrick and Tim for taking my question. Uh, just most of my questions have been answered but just following up on Rainy River, uh, and the strong performance in June, with the 37,000 Oz at 1.404 grams per tonne. Can you maybe give us some color into the great profile uh into the second half of the year, please. Thank you.

And that will add.

In line with the guidance range for the end of the year.

Yeah, from the great profile for the signal over the year. You got me.

Alright. Thanks.

We know we can follow up post call as well, but.

Unknown Executive: So it means that we'll have a better, better drum management looking forward. So it's like some people, it's, it's extremely positive for us to have additional tons from B3.

With more detailed discussion of the second half.

We are warranted.

And what we are comfortable with the earnings.

Yes.

Michael Siperco: Okay, great.

And remember that last year and we all have some reconciliation issue and we did the new model is as <unk> seen in the mining side. They did a new model and we apply the cap on the grid and forecast of three grams per tonne and basically we are.

Michael Siperco: That that makes sense puts it in good context.

Michael Siperco: One more question for me, if I could, and then I'll pass it on. On M&A, broadly speaking, I guess the quarterly update, if you can provide one, but with the consolidation of New Afton now out of the way, and also the, I think, substantial organic growth potential at New Afton, which is set to maybe get some more visibility over the next six to 12 months. How are you thinking about growth now versus maybe exiting Q1?

Yeah, yeah. So so with the uh transition uh you know to that steady feed grade that we see in June, you know, we can expect a similar, high profile um in a similar grade profile in the back half of the year, um, in order to to come into that guidance range. So the majority of the pages as a reminder is coming from the open pit. And that will, uh,

Bring us in line with the guidance range for the end of the year.

Sure.

Great, thanks. Well we we could well we can follow up post call as well with the with more detailed discussion of the second half.

Four hours when we test.

I agree zone in Q2, and we reconciled extremely well. So we are extremely confident for the second half of the year in the second half of the year, we will end the year, where <unk> done a poor stockpile.

so what we are, what we are confident here is

The orange color.

So I'm talking about here and basically the strip ratio going forward would be one to one this year in phase four so we will be well positioned to executing through de risked.

Unknown Executive: So first, we did an excellent M&A in Q2 with futures. It's something that we're really proud of. And you will understand in the short future why we were so excited to do this to consolidate our own asset. I think it's one of the best M&A opportunities for us. You know, and, and actually, as my colleague said, we focus on the organic growth first, it's what we can control. And it's where we can generate a lot of value for sure, without a lot of capital to invest. We are remaining active because we're looking for opportunities. We think that with the cash flow that we'll generate, we can create value for shareholders.

Nor are we are seeing darko.

Tomorrow <unk> is coming in the right time, so it is enjoying the road.

Great No. That's very helpful. And then for sure I'll take you up on that offer thanks, a lot guys.

Thanks, a lot.

There are no further questions at this time I'd like to pass it back to <unk> and the team for closing remarks.

Great. Thank you very much and thank you to everyone who joined US today as always should you have any additional questions. Please do not hesitate to reach out to us by phone or email have a great day.

There's a you know, 1 you remember that last year? We had some reconciliation issue and we we we did the new model but we exist today myself. It is not possible in the team in the mindset. They did a new model and we apply a cap on the upgrade. And so a cap of 3 grams per tonne. And basically, we are we 12s and we test this this, this Ira Zone in Q2 and we reconcile extremely well. So we are extremely confident for the second half of the year and the second half of the year. We will end the year with a 3 million ton of for stockpile at the at the, at the rim collar. And so of the pit I'm talking about here and basically the strip ratio going forward would be 1 to 1 this year and this is for. So we'll be well positioned to execute and to the risk. So it's uh, no. We are think that my travel. This is coming in the, in the right time. So and is enjoying the ride.

This concludes today's conference call you may now disconnect.

Right? So that's very helpful and then anchored for sure. I'll take you up on that offer. Thanks a lot guys.

Unknown Executive: If we don't create, cannot provide an investment opportunity for shareholders, we'll have to ask Ankit Shah to return capital to them. But basically, I think we are disciplined. I'm having my colleagues around me at the table this morning, and we are disciplined. We don't want to be big to be big. We want to be bigger to be better. And so we don't want to work so hard to generate this capital, this cash flow, that we don't want to put that at risk. So we are diligent in our approach, but we're still looking, we're still active, and we are vigilant.

Thanks Mom.

No further questions at this time, I'd like it to pass it back to Ankit and the team for closing remarks.

Great. Thank you very much and thank you to everyone who joined us today. As always, should you have any additional questions? Please do not hesitate to reach out to us by phone or email have a great day.

this concludes today's conference call, you may now disconnect

Unknown Executive: Thank you.

Operator: If you would like to ask a question, again, it is star 1 on your telephone keypad.

Anita Soni: Your next question comes from the line of Anita Soni of CIBC. Your line is open. Good morning Pat and team. Most of my questions have been asked and answered, but I just wanted to understand, on Rainy River, I think you said there was a week delay in some of the high-grade material in the open pit. Is the expectation that you'll get that back in the second half of the year? We, yes, so we have, we will, we are still guiding, still guiding to the guidance and so we, we, it will not change our guidance for a year.

Anita Soni: Okay, and so you're sort of middle end or like your expectations are still in practice what I'm trying to say. Yeah, cool.

Unknown Executive: For this time is what my, what this has explained is we produce this on these answers. But you know, we're not able to strip it from the circuit at the end of the quarter. So it's mainly what happened. If not, we're going to deliver what we get. So it was not in a bar, it wasn't solutions or badly so. But we expect to have this that would waterfall in in in the second half of the year.

Unknown Executive: And then can you just provide an update on what the next deliverables are for the K-Zones, like when you expect to have an update on them? So we want to do an update in the first half of September on all our exploration activities at both sites. And our objective, you know, is that what is interesting in geology is more the drill or the adding value, but our objective is to, as much as we can, to present for the first time and get the inferred resources in Keyzone for the reserve and resource report of 2026.

Anita Soni: All right, thanks and congratulations on a strong... Thank you very much.

Mohamed Sidibe: Your next question comes from the line of Mohamed Sidibe of Citibank. Your line is open. Thanks, Patrick and Tim for taking my question.

Mohamed Sidibe: Most of my questions have been answered, but just following up on Rainy River and the strong performance in June with the 37,000 ounces at 1.44 grams per ton, can you maybe give us some color into the grade profile into the second half of the year, please? Thank you. Yeah, it's a great profile for the second half of the year. Yeah, yeah, so with the transition, you know, to that steady feed grade that we've seen in June, you know, we can expect a similar high profile, similar grade profile in the back half of the year in order to come into that guidance range.

Unknown Executive: So the majority of the feed, just as a reminder, is coming from the open pit and that will bring us in line with the guidance range for the end of the year.

Unknown Executive: Well, we can follow up post-call as well with a more detailed discussion of the second half. What we are confident here is... There's a, you know, remember that last year we had some reconciliation issue and we did the new model, what we existed in myself, Jean-Francois and his team, and the mine site, they did a new model and we apply a cap on the high-grade and so a cap of three grams per ton. And basically, we are, we tested this high-grade zone in Q2 and we reconciled extremely well. So we are extremely confident for the second half of the year.

Unknown Executive: And the second half of the year, we will end the year with a 3 million ton of ore stockpiled at the rim collar. And so of the pit I'm talking about here, and basically the strip ratio going forward would be one-to-one this year in phase four. So we'll be well positioned to execute in 2D risk. So it's, now we are, I think that my Travis is coming in the right time, so he's enjoying the ride.

Mohamed Sidibe: Great, no, that's very helpful. And then Ankit, for sure, I'll take you up on that offer. Thanks a lot, guys.

Operator: There are no further questions at this time.

Ankit Shah: I'd like to pass it back to Ankit and the team for closing remarks. Great, thank you very much. And thank you to everyone who joined us today.

Ankit Shah: As always, should you have any additional questions, please do not hesitate to reach out to us by phone or email. Have a great day.

Operator: This concludes today's conference call.