Q4 2024 Fortuna Mining Corp Earnings Call

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

Please note. This conference is being recorded I will now turn the conference over to your host Carlos Baca, Vice President of Investor Relations you may begin.

Thank you Holly.

Ladies and gentlemen, I would like to welcome you to for Qunar Mining's fourth quarter and full year 2024 financial and operational results conference call hosting the call today on behalf of the company will be President and Chief Executive Officer <unk> <unk>.

Chief Financial Officer, since our last call.

<unk> operating officer, Latin America and <unk>.

David Whittle, Chief operating officer at West Africa.

Today's earnings call presentation is available on our website as a reminder, statements made during the call are subject to the readers advisories.

Alluded in Yesterdays news release, the earnings call webcast presentation, MBNA and the risk factors in our annual information form financial figures contained in the presentation and discussed in today's call are presented in U S dollars unless otherwise stated.

Technical information in the presentation has been reviewed and approved by Eric Chapman Fortuna Senior Vice President of clinical services and qualified person.

I would now like to turn the call over to Jorge Alberto <unk>, President Chief Executive Officer, and co founder of Fortuna.

Thank you Carlos and good day to all.

We're building a proven track record of expanding margins and generating strong cash flow driven by stable costs and rising gold price.

With a robust balance sheet and strong liquidity, we're actively investing in the business, while delivering returns to our shareholders.

In the fourth quarter, the company had record free cash flow from operations of $19 6 million.

Which represents an increase of 69% versus Q3 2024.

Our net cash from operations before changes in working capital was also a record of $142 million or <unk> 46 per share, beating analyst consensus of <unk> 40.

For full year 2024, we surpassed $1 billion in sales for the first time.

Quarter over quarter, we realized a 7% higher gold price of $2660.

And 10% higher revenue of $302 million.

While cash cost per ounce was 4% lower leading to an expansion of operating cash flow margin from 33% to 50%.

For full year 2025, comparing against 2024, our outlook is for stable to lower cash cost in the range of 895 to $1015 per ounce.

And stable to lower ASIC as well in the range of 552 1600 $80 per ounce.

Financially today were strong.

And this only continues to improve in the current gold price and operating environment.

Since the completion of a singular mine construction in mid 2023, we have reduced debt.

$118 million moved from a net debt position at the time of $198 million through a year and positive net cash position of $59 million.

At year end cash was $271 million a quarter over quarter increase of $50 million driven by strong growth in our free cash flow and liquidity was over $381 million.

While these where we maintain a very low debt leverage ratio of under 0.4.

We returned 30.

$5 million to our shareholders via share buybacks in the fourth quarter and followed with additional purchases in January of one $8 million or 400000 shares until they are reporting periods blackout setting.

We look forward to remain active in our repurchase programs throughout the year.

<unk> full year 2024, $49 million was invested in mineral exploration of new project development.

We plan to continue investing aggressively in the asset portfolio in 2025 with a budget of $51 million with several high value targets like kingfisher and some very deep singular nine cap.

<unk> north prospect in northern Cote d'ivoire.

The <unk> project in Senegal, <unk> porphyry at any little mine in Argentina.

Optimization of our main portfolio is something I want to expand on as well.

We're capturing two large opportunities first in.

In line with our messaging throughout 2024, we announced at the beginning of the year the strategic decision to divest of our non core San Jose mine in Mexico, which has become our highest cost mine and was producing from the tail end of its reserves.

The sales growth is ongoing and once concluded will allow us to refocus capital and management's attention on high value opportunities.

And second.

The successful optimization and expansion of our flagship singular mine has allowed us to provide two year production and cost outlook with the mine plan to reach in 2026, a gold production of 160000 to 180000 ounces at an industry leading <unk>.

Between to 160, <unk> <unk> hundred $90 per ounce.

For 2024 months for total recordable injury frequency rate and lost time injury frequency rate.

It was 1360 48, respectively.

Compared to $1 22, and <unk> 30.

<unk> 36 in 2023.

Importantly, our 2023 and 2024 performance measures consistently well against the published 2023 ICM DRA, if our fear of 259.

And three of our mines operated free of any lost time injuries in 2024.

However, subsea.

Subsequent to year end. This performance was tainted by a tradeoff vaccines that are singular mine on February 24th.

Deeply regret this tragic accident and our heartfelt condolences traveling out to funding the <unk> colleagues.

A specialized service provider to remind contractor Montana deal was fatally injured, we're conducting a planned inspection and recharge or fire extinguishers.

Upon the accident senior corporate managers mobilized to site and an investigation is underway.

We're firmly committed to a zero harm work environment that for tumor.

Now our Chief operating officer, who will provide a briefing of their respective regions will start with West Africa, and David Whittle David.

Thanks, Hello, guys.

So again, my Italian had a successful fourth quarter from both the safety and duration perspective.

In the fourth quarter, So again produced 35.

244 ounces of gold, a 1% improvement compared to the previous quarter.

137791 ounces of gold in its first full year production.

Yes.

<unk> production performance in the mid 29570 seats.

Sorry, 29570 6000 adult.

A 6% improvement compared to the previous quarter, leading to 116206 ounces of gold for the year.

Five mines achieved the higher end of their annual production guidance.

In the fourth quarter <unk> mined 715000 tonnes of ore at an average gold grade of 234 grams per tonne.

And three 7 million tons of waste strip ratio of five 1% to one.

Gold price was 430000 tonnes at $2 95 grams per tonne gold.

Mine production was primarily sourced from the antenna.

With production from the high grade <unk> ramping up in the second half of the year.

And the processing plant.

<unk> continued successfully and maintained an average $3 right at 213 tonnes per hour for the quarter.

<unk> nameplate capacity by 28%.

Because of the better than expected production of the processing plant, we move forward with construction of the third relates to the timing storage facility.

Construction began in the fourth quarter of 2020 full with completion expected in the second quarter of 2025.

This eight $5 million capital advancement will provide adequate skin tightening storage until 2029 allow.

Allowing for the increase in the production guidance in 2026 and beyond about 160 to 180000 ounces.

So again, a strong performance resulted in a cash cost of $653 per ounce for the quarter.

We have a cash cost for the year outperforming guidance at $584 per ounce.

AUC was $1376 and $1153 per ounce of gold for the quarter and year, respectively at the lower end of guidance for 2024.

So again, a strong production complemented by ongoing exploration success of the Kingfisher sunbird underground and other deposits positively reflects on the future and provides an opportunity to greatly exceed production profile was established in the definitive feasibility study.

Indeed.

At <unk> mine production.

Function in the fourth quarter of 2020 full was 118000 tons I don't know.

We've kind of eight five grams per tonne gold.

Mine production was permanent primarily at <unk> from the 55 zone underground mine with development and Stoping operations at the bankruptcy mine contributing 29000 tonnes at a grade of 893 grams per tonne gold to be above outputs.

All development has a 55 zone was completed in the fourth quarter.

We waste development also having now being completed.

In the fourth quarter.

Contract for mining of the 190 <unk> iPhone pitch was awarded under contracts in progress with mobilization activities with mining starting in the first quarter of 2025.

On the processing plant 102000 tons were treated.

Average kind of eight five grams per tonne gold.

The continued production profile and chiaro Marco.

And I think of $1302 and $1359 per ounce for the <unk>.

Water and the year respectively.

Are you seeing marginally.

Exceeded annual guidance due to $9 $6 million of the increase development.

155 ore body extensions coming throughout the year.

Increasing 2025 planned production.

Extending the life of mine into 2026.

Our cash cost of atrium and $12 per ounce for the quarter and <unk> $60 per ounce for the year was achieved.

Forming the provided guidance.

Overall West Africa, how does successful 2024 empowered volumes again in its first full year of production.

Looking ahead, we are greatly encouraged by both the short and long term outlook as we continue to enhance our production and further explore the prosperous West African region.

Thank you and back to your program.

Thank you we will now go on to see.

The briefing from Latam setup.

Thank you Jorge and good day to everyone.

In 2020 for our Latin American operations demonstrated a good safety performance.

They also deliver strong production.

Project execution with the exception of San Jose Mine has entered in the tail end of research.

I was wondering you mentioned the San Jose mine was placed into care and maintenance in January of 'twenty.

As we are engaged in the sale process.

Starting in Argentina in dental produce 20, 26806 ounces of gold in the fourth quarter.

The 10% improvement in production over the previous quarter is due to a higher rate of pregnant solution per installation.

Which is related to the firstly.

Or.

Based on the new Leach pad expansion area.

As you know the Leach pad expansion has been our largest capital project in our portfolio in 2024, with a $42 million budget, which.

Weighs heavily.

Our all in sustaining costs by approximately $400 of the total $1793 for the year.

I am pleased to point out that mean dental began placing ore on the leach on the new Leach pad area in the second half of October 2024.

Two weeks ahead of plan and on budget.

As of the end of February 2025, the completion is at 94% and only minor activities and contractor Ebola demobilization remain.

In the fourth quarter 2 million tonnes of ore were mined with a stripping ratio of 154 to one.

A total of $1 36 million tons support were placed on the leach pad.

Leveraging cero point 60 grams per tonne of gold containing an estimated 34151 ounces of gold.

For the full year 'twenty 'twenty four.

Gold production totaled 97287 ounces, achieving mid point of our annual production guidance.

In the fourth quarter <unk> had a cash cost of $1063 per ounce and an <unk> of $1873 per ounce of gold.

When compared to the previous quarter.

AC is positively down 5%.

Reflecting a decrease in leach pad capex.

Though partially offset by a continued higher peso appreciation.

Yes.

Looking ahead and looking ahead for 2025.

We have guided for lower ASIC between 60 and 101070 <unk>.

$1770 per ounce.

In Q1.

We will be seen a bit of that leach pad capex.

For the year, we will reach our peak stripping ratio of two two to one.

To revert back in 2026 closer to the launch average of $1 24 to one.

As part of several operational efficiency initiatives lean data successfully implemented a project to reduce the size for our whole trucks and excavators, enabling additional cost savings and operational efficiencies during the life of mine.

Another strategic project is there.

The solar plant of 14 five megawatts per hour.

Currently at 63% advance.

On schedule.

And expect it to be completed by the third quarter of 2025.

As Paul Peru, I am delighted to report that Yamana mines surplus.

Its full year production guidance for all metals.

The mine produced 249238 ounces of silver at an average head grade of <unk> 67 grams per tonne of silver in the fourth quarter of 2024.

Aligned with the mining schedule for the period.

Zinc and lead production totaled $13 9 million pounds, and nine 5 million pounds with average head grade of 494% and 336% respectively.

These represents an improvement of 6% for zinc.

The decrease of 7% for lead when compared to the third quarter of 2024.

Zinc and lead production were above the higher end of annual guidance by an impressive 33% and 16% respectively.

Increased production attain is the result of positive grade reconciliation to the reserve model and the lower levels of the underground mine.

Cash cost per silver equivalent ounce for the quarter was 16 point.

$16 53, and $14 on 12.

These wars.

Driven primarily by the result of lower silver production and the impact of higher realized silver prices on the calculation of silver equivalent ounce sold.

Shelley offset by lower treatment charges.

80 per ounce of payable silver equivalent was $28 10 for the quarter.

A 26, 6% increase when compared to the same period of 2023, mainly explained by the result of higher cash cost per ounce higher workers' participation.

The impact of higher realized silver prices.

Softening lower equivalent ounces.

AC was calculated using the guidance metal prices.

It would have been $23 60 per ounce for the quarter and $19 27 per ounce for the full year respectively.

However.

Cash cost on ASIC are both daily generally aligned with the annual guidance range.

Overall, we achieved strong production in 2024.

And remain excited about our operations and exploration activities throughout Latin America in 2025 and beyond.

Back to you Jorge our CFO now briefly on the highlights of the financial results.

Yes.

Thank you.

Attributable attributable net income in the quarter was 11 3 million.

<unk> per share, including $26 million of noncash charges.

We're comprise.

Mainly of the following a write off of $14 $5 million related to the <unk> mineral appropriate being Burkina Faso.

The write off corresponds to a $9 million of purchase price allocation as part of our Roadshow acquisition and subsequent exploration expenditures.

$87 $2 million mine closure provision associated with the scheduled closure of the San Jose mine at year end.

Closure provision is expected to unwind upon completion of the sale of San Jose.

And a write down of low grade ore stockpiles of $4 $6 million at the limit of mine. This.

This write down was triggered by a projected higher costs from the appreciation of the Argentine peso against the U S dollar.

Yes assessment is done with a gold price of $2150 per ounce and it is worth noting the value of the stockpiles remain well above the incremental cash cost to process the ore.

After adjusting for noncash charges attributable net income in Q4 was $37 million or <unk> 12 per share.

We have disclosed and impact of <unk> <unk> per share from the devaluation of the euro against the U S dollar in the quarter, which generated unrealized foreign exchange loss of seven and a half million dollars.

Additionally, it has some impact on the effective tax rate, mostly through the deferred tax component of the income tax provision.

Our effective tax rate was 46% we estimate our normalized.

Effective tax rate to be between 30 and 35%.

Adjusted earnings per share in Q4 represents an increase over the prior year of 50%.

The increase is primarily due to higher gold prices.

We realized average gold price for the quarter of 2000 and $660 per ounce an increase of approximately 34% over Q4 of 2023.

Our adjusted EPS in Q4 compared to the prior quarter decreased 30% as the positive impact from higher sales of $27 million.

It was offset mainly by the higher effective tax rate and foreign exchange losses previously discussed.

Our highest sales quarter over quarter were explained by a higher gold prices and slightly higher gold volume sold of 4%.

Our cash cost of sales per gold equivalent.

So that was $1050 for the quarter and $980000 for the year.

As Jorge mentioned, both where do we see in our annual guidance of 935 to $955 per ounce at lower costs again, offset higher costs at the narrow mostly from the appreciation of the peso.

In Argentina.

I will provide a few other comments pertaining to certain items.

Out of our annual results.

We recorded a foreign exchange loss as I've mentioned of for the full year of $12 $6 million of which $10 4 million was recorded in Q4.

Again, this was mostly related to the devaluation of the euro against the U S dollar, which from frequently impact CFA franc denominated assets in our West African business.

Our interest and finance finance costs for the full year were $25 5 million of which accrued convertible coupon interest and bank debt interest.

$13 5 million.

The comparable figure in 2023 was $15 7 million.

And $22 million, when including capitalized interest from the singular construction fees.

This represents a decrease in interest charges of $9 million in 'twenty, 'twenty, four reflecting lower debt balances and lower cost of debt.

Detail on this can be found in note 23 of our financial statements.

And finally, we recorded annual investment gains of $9 $7 million related to the cross border trades of Argentine bonds. This is a mechanism by which <unk> quarters are allowed to access a preferential rate for a portion of export proceeds.

Part of government incentives to alleviate the overvaluation of the official exchange rate.

In Q4, we have changed our ASIC calculation to include these amounts.

<unk>.

It's a better reflection of the cost of doing business in the country.

It is worth noting that in 2020 for the peso appreciated in real terms by 40% against the U S dollar.

Moving on to free cash flow and liquidity, our total capital spend as for our cash flow statement for the year was $204 million.

Of which $51 million corresponds to non sustaining capital.

In Q4, we had our highest capital spend in the year with a total of $61 million.

Of which $12 million corresponds to non sustaining capex.

The free cash flow, we report from ongoing operation.

Operations deduct sustaining capital only.

And our free cash flow for Q4 was $95 6 million and $203 million for the full year.

It is also worth noting we paid income taxes in the year of almost $44 million, while we incurred $96 $5 million of current taxes.

Our tax payments in 2025, we will consequently right.

And assuming constant prices year over year payments should be much closer to our expected incurred income taxes.

Our total liquidity at the end of the quarter was $381 million compared to $430 million, we reported in the prior quarter.

In the context of our strong free cash flow generation in Q4, the change reflects a downsized some of our credit facility by $100 million.

And share repurchases of $36 million in the last quarter of the year.

Considering the $75 million.

Feature in our bank facility, our total potential liquidity available at the end of the quarter was $456 million.

Okay.

Carlos.

If there are no further questions I would like to thank everyone for listening to today's earnings call have a great day.

Okay.

Sorry, sorry.

We would now like to open the call to any questions that you may have.

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We have reached the end of our question and answer session and I will now turn the call over to Carlos for closing remarks.

Thank you Holly well now since there are no questions I would like to thank everybody for listening into today's call and I wish you all a great day bye.

This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Operator: I will now turn the conference over to your host, Carlos Baca, Vice President of Investor Relations. You may begin.

Carlos Baca: Thank you, Holly. Good morning, ladies and gentlemen. I would like to welcome you to Fortuna Mining's Q4 and full year 2024 Financial and Operational Results Conference Call. Hosting the call today on behalf of the company will be Jorge Alberto Ganoza, President and Chief Executive Officer, Luis Darío Ganoza, Chief Financial Officer, Cesar Velasco, Chief Operating Officer, Latin America, and David Whittle, Chief Operating Officer, West Africa. Today's earnings call presentation is available on our website. As a reminder, statements made during this call are subject to the readers' advisories included in yesterday's news release, the earnings call webcast presentation, MD&A, and the risk factors in our annual information forms. Financial figures contained in the presentation and discussed in today's call are presented in US dollars unless otherwise stated.

Carlos Baca: Technical information in the presentation has been reviewed and approved by Eric Chapman, Fortuna Senior Vice President of Technical Services and Qualified Person. I would now like to turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer, and Co-founder of Fortuna.

Jorge Alberto Ganoza: Thank you, Carlos, and good day to all. We're building a proven track record of expanding margins and generating strong cash flow, driven by stable costs and rising gold prices. With a robust balance sheet and strong liquidity, we're actively investing in the business while delivering returns to our shareholders. In Q4, the company had record free cash flow from operations of $19.6 million, which represents an increase of 69% versus Q3 2024. Net cash from operations before changes in working capital was also a record $142 million or $0.46 per share, beating analyst consensus of $0.40. For full year 2024, we surpassed $1 billion in sales for the first time. Quarter-over-quarter, we realized a 7% higher gold price of $2,660 and 10% higher revenue of $302 million.

Jorge Alberto Ganoza: While cash cost per ounce was 4% lower, leading to an expansion of operating cash flow margin from 33% to 50%. For full year 2025 comparing against 2024, our outlook is for stable to lower cash costs in the range of $895 to 1,015 per ounce, and stable to lower AISC as well in the range of $1,550 to 1,680 per ounce. Financially, today we're strong, and this only continues to improve in the current gold price and operating environment. Since the completion of the Séguéla mine construction in mid-2023, we have reduced debt by $118 million, moved from a net debt position at the time of $198 million to a year-end positive net cash position of $59 million. At year-end, cash was $231 million, a quarter-over-quarter increase of $50 million driven by strong growth in our free cash flow, and liquidity was over $381 million.

Jorge Alberto Ganoza: All this while we maintain a very low debt leverage ratio of under 0.4. We returned $30.5 million to our shareholders via share buybacks in the Q4 and followed with additional purchases in January of $1.8 million or 400,000 shares until the reporting period blackout set in. We look forward to remain active in our repurchase programs throughout this year. During full year 2024, $49 million was invested in mineral exploration and new project development. We plan to continue investing aggressively in the asset portfolio in 2025 with a budget of $51 million with several high-value targets like Kingfisher and Sunbird Deep at the Séguéla Mine camp, the Tongon North Prospect in northern Côte d'Ivoire, the Diamba Sud project in Senegal, and the Arizaro gold porphyry at the Lindero mine in Argentina. Optimization of our mine portfolio is something I want to expand on as well.

Jorge Alberto Ganoza: We're capturing 2 large opportunities. First, in line with our messaging throughout 2024, we announced at the beginning of the year the strategic decision to divest of our non-core San Jose mine in Mexico, which had become our highest cost mine and was producing from the tail end of its reserves. The sale process is ongoing. Once concluded, will allow us to refocus capital and management's attention on high-value opportunities. Second, the successful optimization and expansion of our flagship Séguéla mine has allowed us to provide 2-year production and cost outlook with the mine planned to reach in 2026A gold production of 160,000 to 180,000 ounces at an industry-leading AISC of between $1,260 and $1,390 per ounce.

Jorge Alberto Ganoza: Our 2024 performance for Total Recordable Injury Frequency Rate and Lost Time Injury Frequency Rate was 1.36 and 0.48 respectively, compared to 1.22 and 0.36 in 2023. Importantly, our 2023 and 2024 performance measures consistently well against the published 2023 ICMM TRIFR figure of 2.59. Three of our mines operated free of any lost time injuries in 2024. However, subsequent to year-end, this performance was tainted by the fatal accident at our Séguéla mine on 24 February. We deeply regret this tragic accident, and our heartfelt condolences have gone out to family and colleagues. A specialized service provider to our mine contractor, Mota-Engil, was fatally injured while conducting a planned inspection and recharge of fire extinguishers. Upon the accident, senior corporate managers mobilized to site and an investigation is underway.

Jorge Alberto Ganoza: We're firmly committed to a zero-harm work environment at Fortuna. Now, our chief operating officers will provide a briefing of their respective regions. We'll start with West Africa and David Whittle. David?

David Whittle: Thanks, Jorge. Séguéla and Yaramoko had a successful Q4 from both a safety and production perspective. In the Q4, Séguéla produced 35,244 ounces of gold, a 1% improvement compared to the previous quarter, and delivered 137,781 ounces of gold in its first full year of production. Yaramoko's strong production performance delivered 29,576 ounces of gold, a 6% improvement compared to the previous quarter, leading to 116,206 ounces of gold for the year. Both mines achieved the higher end of their annual production guidance.

David Whittle: In Q4, Séguéla mined 715,000 tons of ore at an average gold grade of 2.34 g/t and 3.67 million tons of waste for a strip ratio of 5.1 to 1. Ore process was 430,000 tons at 2.95 g/t gold. Mine production was primarily sourced from the Antenna pit, with production from the high-grade Ancien and Koula pits ramping up in H2 of the year. At the processing plant, operations continued successfully and attained an average throughput rate of 213 tons per hour for the quarter, surpassing nameplate capacity by 38%. Because of the better-than-expected production at the processing plant, we moved forward with construction of the 3rd lift of the tailings storage facility.

David Whittle: Construction began in Q4 2024, with completion expected in Q2 2025. This $8.5 million capital advancement will provide adequate slurry tailing storage until 2029, allowing for the increase in the production guidance in 2026 and beyond of 160,000 to 180,000 ounces. Séguéla's strong performance resulted in a cash cost of $653 per ounce for the quarter, with a cash cost for the year outperforming guidance at $584 per ounce. AISC was $1,376 and $1,153 per ounce of gold for the quarter and the year respectively, at the lower end of guidance for 2024.

David Whittle: Séguéla's strong production, complemented by ongoing exploration success of the Kingfisher, Sunbird underground, and other deposits, positively reflects on the future and provides an opportunity to greatly exceed the production profile established in the definitive feasibility study. At Yaramoko, mine production in Q4 2024 was 118,000 tons at an average grade of 8.5 grams per ton gold. Mine production was primarily attained from the Fifty-five Zone underground mine, with development and stoping operations at the Bagassi South mine contributing 29,000 tons at a grade of 8.93 grams per ton gold to the above outputs. Ore development at the Fifty-five Zone was completed in Q4, with waste development also having now been completed.

David Whittle: In Q4, the contract for mining of the One-O-Nine Zone open pits was awarded and the contract to progress with mobilization activities, with mining starting in Q1 2025. At the processing plant, 102,000 tonnes were treated at an average grade of 8.5 grams per tonne gold. The continued production profile at Yaramoko attained an AISC of $1,302 and $1,359 per ounce for the quarter and year respectively. AISC marginally exceeded annual guidance due to $9.6 million of increased development in the Zone 55 ore body extensions discovered throughout the year, increasing 2025 planned production and extending the life of mine into 2026. A cash cost of $812 per ounce for the quarter and $860 per ounce for the year was achieved, outperforming the provided guidance. Overall, West Africa had a successful 2024, empowered by Séguéla's first full year of production.

David Whittle: Looking ahead, we are greatly encouraged by both the short and long-term outlook as we continue to enhance our production and further explore the prosperous West African region. Thank you, and back to you, Jorge.

Jorge Alberto Ganoza: Thank you. We'll now go on to see the briefing from LATAM. Cesar?

Cesar Velasco: Thank you, Jorge. Good day to everyone. In 2024, our Latin American operations demonstrated a good safety performance. They also delivered strong production and projects execution, with the exception of San Jose mine as it entered in the tail end of reserves. As Jorge mentioned, the San Jose mine was placed in care and maintenance in January 2025 as we are engaged in the sale process. Starting in Argentina, Lindero produced 26,806 ounces of gold in Q4. The 10% improvement in production over the previous quarter is due to a higher rate of pregnant solution percolation, which is related to the first lift of ore placed on the new leach pad expansion area.

Cesar Velasco: As you know, the leach pad expansion has been our largest capital project in our portfolio in 2024, with a $42 million budget, which weighs heavily in our all-in sustaining costs by approximately $400 of the total $1,793 for the year. I am pleased to point out that Lindero began placing ore on the new leach pad area in H2 of October 2024, 2 weeks ahead of plan and on budget. As of the end of February 2025, the completion is at 94%, and only minor activities and contractor demobilization remain. In Q4, 2 million tonnes of ore were mined with a stripping ratio of 1.54:1. A total of 1.36 million tonnes of ore were placed on the leach pad, averaging 0.60 grams per tonne of gold, containing an estimated 34,151 ounces of gold.

Cesar Velasco: For the full year 2024, gold production totaled 97,287 ounces, achieving midpoint of our annual production guidance. In Q4, Lindero had a cash cost of $1,063 per ounce and an AISC of $1,873 per ounce of gold. When compared to the previous quarter, AISC is positively down 5%, reflecting a decrease in leach pad CapEx, although partially offset by a continued higher peso appreciation. Looking ahead for 2025, we have guided for lower AISC between $1,600 and $1,770 per ounce. In Q1, we will be seeing a bit of that leach pad CapEx, and for the year, we will reach our peak stripping ratio of 2.2:1 to revert back in 2026, closer to the LOM's average of 1.24:1.

Cesar Velasco: As part of several operational efficiency initiatives, Lindero successfully implemented a project to reduce the size for haul trucks and excavators, enabling additional cost savings and operational efficiencies during the life of mine. Another strategic project is the solar plant of 14.5 MW, currently at 63% advanced, on schedule, and expected to be completed by Q3 2025. As for Peru, I am delighted to report that the Caylloma Mine surpassed its full-year production guidance for all metals. The mine produced 249,238 ounces of silver at an average head grade of 67 grams per tonne of silver in Q4 2024, aligned with the mine schedule for the period. Zinc and lead production totaled 13.9 million pounds and 9.5 million pounds, with average head grades of 4.94% and 3.36%, respectively.

Cesar Velasco: This represents an improvement of 6% for zinc and a decrease of 7% for lead when compared to Q3 2024. Zinc and lead production were above the higher end of annual guidance by an impressive 33% and 16%, respectively. The increased production attained is the result of positive grade reconciliation to the reserve model in the lower levels of the underground mine. Cash cost per silver equivalent ounce for the quarter was $16.53 and $14.12 for the full year. This was driven primarily by the result of lower silver production and the impact of higher realized silver prices on the calculation of silver equivalent ounce sold, partially offset by lower treatment charges.

Cesar Velasco: AISC per ounce of payable silver equivalent was $28.10 for the quarter, a 26% increase when compared to the same period of 2023, mainly explained by the result of higher cash cost per ounce, higher workers' participation, and the impact of higher realized silver prices resulting in lower equivalent ounces. If AISC was calculated using the guidance metal prices, AISC would've been $23.60 per ounce for a quarter, and $19.27 per ounce for a full year respectively. However, cash cost and AISC are both diligently aligned with the annual guidance range. Overall, we achieved strong production in 2024 and remain excited about our operations and exploration activities throughout Latin America in 2025 and beyond. Back to you, Jorge.

Jorge Alberto Ganoza: Thank you. Our CFO now will brief us on the highlights of the financial results. Luis?

Luis Darío Ganoza: Thank you. Attributable net income in the quarter was $11.3 million or $0.04 per share, including $26 million of non-cash charges, which were comprised mainly of the following: a write-off of $14.5 million related to the Boussoura mineral property in Burkina Faso. The write-off corresponds to the $9 million of purchase price allocation as part of the Roxgold acquisition and subsequent exploration expenditures. A $7.2 million mine closure provision associated with the scheduled closure of the San Jose mine at year-end. The closure provision is expected to unwind upon completion of the sale of San Jose. A write-down of low-grade ore stockpiles of $4.6 million at the Lindero mine. This write-down was triggered by projected higher costs from the appreciation of the Argentine peso against the US dollar.

Luis Darío Ganoza: The assessment is done with a gold price of $2,150 per ounce, and it is worth noting the value of the stockpiles remains well above the incremental cash cost to process the ore. After adjusting for non-cash charges, attributable net income in Q4 was $37 million or $0.12 per share. We have disclosed an impact of $0.05 per share from the devaluation of the euro against the US dollar in the quarter, which generated an unrealized foreign exchange loss of $7.5 million, and which additionally has an impact on the effective tax rate, mostly through the deferred tax component of the income tax provision. Our effective tax rate was 46%. We estimate our normalized effective tax rate to be between 30% and 35%. Adjusted earnings per share in Q4 represent an increase over the prior year of 50%. The increase is primarily due to higher gold prices.

Luis Darío Ganoza: We realized average gold price for the quarter of $2,660 per ounce, an increase of approximately 34% over Q4 of 2023. Our adjusted EPS in Q4 compared to the prior quarter increased 30%, as a positive impact from higher sales of $27 million was offset mainly by the higher effective tax rate and foreign exchange losses previously discussed. Our higher sales quarter-over-quarter were explained by higher gold prices and slightly higher gold volume sold of 4%. Our cash cost of sales per gold equivalent ounce sold was $1,015 for the quarter and $987 for the year. As Jorge mentioned, both were within our annual guidance of $935 to $955 per ounce, as lower costs at Séguéla offset higher costs at Lindero, mostly from the appreciation of the peso in Argentina. I will provide a few other comments pertaining certain items out of our annual results.

Luis Darío Ganoza: We recorded a foreign exchange loss, as I've mentioned, for the full year of $12.6 million, of which $10.4 million was recorded in Q4. This was mostly related to the evaluation of the euro against the US dollar, which consequently impacts CFA Franc-denominated assets in our West African business. Our interest and finance costs for the full year were $25.5 million, of which accrued convertible coupon interest and bank debt interest were $13.5 million. A comparable figure in 2023 was $15.7 million, and $22 million when including capitalized interest from the Séguéla construction phase. This represents a decrease in interest charges of $9 million in 2024, reflecting lower debt balances and lower cost of debt. Detail on this can be found on Note 23 of our financial statements. We recorded annual investment gains of $9.7 million related to the cross-border trades of Argentine bonds.

Luis Darío Ganoza: This is a mechanism by which exporters are allowed to access a preferential rate for a portion of export proceeds as part of government incentives to alleviate the overvaluation of the official exchange rate. In Q4, we have changed our AISC calculation to include these amounts as we deem this provides a better reflection of the cost of doing business in the country. It is worth noting that in 2024, the peso appreciated in real terms by 40% against the US dollar. Moving on to free cash flow and liquidity. Our total capital spend as per our cash flow statement for the year was $204 million, of which $51 million corresponds to non-sustaining capital. In Q4, we had our highest capital spend in the year with a total of $61 million, of which $12 million corresponds to non-sustaining capital.

Luis Darío Ganoza: The free cash flow we report from ongoing operations deducts sustaining capital only. Our free cash flow for Q4 was $95.6 million and $203 million for the full year. It is also worth noting we paid income taxes in the year of almost $44 million, while we incurred $96.5 million of current taxes. Our tax payments in 2025 will consequently rise, and assuming constant prices year-over-year, payments should be much closer to our expected incurred income taxes. Our total liquidity at the end of the quarter was $381 million compared to the $430 million we reported in the prior quarter. In the context of our strong free cash flow generation in Q4, the change reflects the downsides of our credit facility by $100 million, and share repurchases of $30.6 million in the last quarter of the year.

Luis Darío Ganoza: Considering the $75 million accordion feature in our bank facility, our total potential liquidity available at the end of the quarter was $456 million. Back to you, Jorge.

Jorge Alberto Ganoza: Carlos.

Carlos Baca: If there are no further questions, I would like to thank everyone for listening to today's earnings call. Have a great day.

Carlos Baca: Sorry, my bad. We would now like to open the call to any questions that you may have.

Operator: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star one to ask a question. Please hold while we poll for questions. As a reminder, if you would like to ask a question, please press star one. We have reached the end of the question and answer session, and I will now turn the call over to Carlos for closing remarks.

Carlos Baca: Thank you, Holly. Well now, since there are no questions, I would like to thank everybody for listening in to today's call. I do wish you a great day. Bye.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.