Q2 2025 Discovery Silver Corp Earnings Call

Speaker #3: Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Second Quarter 2025 conference call and webcast.

Rob: Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Second Quarter 2025 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. Thank you. I will now turn the call over to Mark Utting, Senior Vice President, Investor Relations for Discovery. Mr. Utting, you may begin your conference.

Speaker #3: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad.

Speaker #3: If you would like to withdraw your question, again press *1. Thank you. I will now turn the call over to Mark Unning, Senior Vice President of Investor Relations for Discovery.

Speaker #3: Mr. Unning, you may begin your conference.

Speaker #4: Thanks very much, operator. And thanks to everyone on the line for joining us today for Discovery's Second Quarter 2025 conference call and webcast. As you've heard, I'm Mark Unning, Senior Vice President of Investor Relations.

Mark Utting: Thanks very much, Operator, and thanks to everyone on the line for joining us today for Discovery Q2 2025 Conference Call and Webcast. As you've heard, I'm Mark Utting, Senior Vice President, Investor Relations. Joining me today are most of our members of our senior management team, speakers who will be taking part in the presentation: Tony Makuch, Discovery CEO; Alison White, our Chief Financial Officer; Pierre Rocque, our Chief Operating Officer; Eric Kallio, our Senior Vice President in Exploration; José Jabalera, our Vice President, Corporate Affairs and Sustainability in Mexico, and Tony will conclude with some concluding remarks. Before we get going, I'll point out that, as you know, we issued our Q2 results pre-market this morning. Our press release, MD&A, and financials are all available on our website at discoverysilver.com as well as at SEDAR+.

Mark Utting: Thanks very much, Operator, and thanks everyone on the line for joining us today for Discovery Second Quarter 2025 conference call and webcast. As you've heard, I'm Mark Utting, Senior Vice President, Investor Relations. Joining me today are most of our members of our senior management team. Speakers who will be taking part in the presentation are Tony McCooch, Discovery CEO; Allison White, our Chief Financial Officer; Pierre Roch, our Chief Operating Officer; Eric Callio, our Senior Vice President in Exploration; Jose Hevalera, our Vice President, Corporate Affairs and Sustainability in Mexico. And Tony will conclude with some concluding remarks. Until we get going, I'll point out that, as you know, we issued our Q2 results pre-market this morning. Our press release, MD&A, and financials are all available on our website at discoverysilver.com, as well as at CEDART+.

Speaker #4: Joining me today are most of our members of our senior management team. The speakers who will be taking part in the presentation are Tony McCooch, Discovery CEO; Alison White, our Chief Financial Officer; Pierre Rock, our Chief Operating Officer; Eric Callio, our Senior Vice President of Exploration; Jose Jabalera, our Vice President of Corporate Affairs and Sustainability in Mexico; and Tony will conclude with some closing remarks.

Speaker #4: So we get going, I'll point out that, as many of you know, we issued our Q2 results pre-market this morning. Our press release, MD&A, and Financials are all available on our website.

Speaker #4: At discoverysilver.com, as well as at Cedar Plus. Before beginning, I would like to remind you that during today's call, we will be making forward-looking statements.

Mark Utting: Before beginning, I'd like to remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations, assumptions, and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those in such statements. I refer you to slide 2 in our slide deck as well as disclosures on our website for more information about forward-looking information. In addition, we will also be referring to non-IFRS measures during the presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting standards. I will refer you to slide 3 in our slide deck as well as in our financial disclosures issued today for more information.

Mark Utting: Before beginning, I'd like to remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations, assumptions, and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those in such statements. I refer you to slide two in our slide deck, as well as disclosures on our website for more information about forward-looking information. In addition, we will also be referring to non-IFRS measures during the presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting standards. I will refer you to slide three in our slide deck, as well as in our financial disclosures issued today for more information.

Speaker #4: These statements are based on current expectations, assumptions, and projections about future events. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those in such statements.

Speaker #4: I refer you to slide two in our slide deck, as well as disclosures on our website for more information about forward-looking information. In addition, we will also be referring to non-IFRS measures during the presentation.

Speaker #4: These measures are included and provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with court and accounting standards.

Speaker #4: I will refer you to slide three in our slide deck, as well as our financial disclosures issued today for more information. Finally, all dollar amounts today will be in U.S. dollars unless otherwise indicated.

Mark Utting: Finally, all dollar amounts today will be in US dollars unless otherwise indicated. To that point, Q2 2025 represents our first quarter as a US dollar reporting issuer. With that, I'll turn the call over to Tony McCooch, Discovery CEO.

Mark Utting: Finally, all dollar amounts today will be in US dollars unless otherwise indicated. To that point, Q2 2025 represents our first quarter as a US dollar reporting issuer. With that, I'll turn the call over to Tony Makuch, Discovery CEO.

Speaker #4: To that point, Q2 2025 represents our first quarter as a U.S. dollar reporting issuer. With that, I'll turn the call over to Tony McCooch, Discovery CEO.

Speaker #5: Hey, thanks thanks Mark. Good afternoon, everyone, and thanks for getting on the call. It's it's kind of a nice to be able to be hosting the Discovery's first first quarterly investor call here.

Tony McCooch: Hey, thanks, thanks Mark. Good afternoon everyone, and thanks for getting in the call. It's kind of nice to be able to be hosting the Discovery's first quarterly investor call here. It was, it's our first quarter as a new Canadian gold producer. And since we took over the operations from Newmont, I mean, we've had some success, and we can give you some sense of what's been going on and then give you a sense for maybe some color for how we're going to proceed throughout the year. And you know, in terms of the results, Q2 was a quarter of transition. We integrated systems, reorganized management, began implementing investment plans. We had the operations for 76 days of the quarter, and I'll point out that there was also a two-week scheduled mill shutdown shortly after the deal closed in April.

Tony Makuch: Hey, thanks. Thanks, Mark. Good afternoon, everyone, and thanks for getting on the call. It's kind of nice to be able to be hosting the Discovery Silver Corp.'s first quarterly investor call here. It's our first quarter as a new Canadian gold producer. Since we took over the operations from Newmont, I mean, we've had some success, and we can give you some sense of what's been going on and then give you a sense for maybe some color for how we're going to proceed throughout the year. In terms of the results, Q2 was a quarter of transition. We integrated systems, reorganized management, began implementing investment plans. We had the operations for 76 days of the quarter, and I'll point out that there was also a two-week scheduled mill shutdown shortly after the deal closed in April.

Speaker #5: It was it's it's our first quarter as a new Canadian gold producer. And since we took over the operations from Newmont, I mean, we've had some success and and we can give it some sense of what's been going on.

Speaker #5: And then give you a sense for maybe some color for how how we're going to proceed throughout the year. And you know, in in in terms of the results, Q2 was a quarter of transition.

Speaker #5: We integrated systems, reorganized management, and began implementing investment plans. We had operations for 76 days of the quarter, noting that there was also a two-week scheduled meal shutdown shortly after the deal closed in April.

Speaker #5: But at the same time, we also, you know, in spite of all this, we did turn in a solid quarter of operating and financial performance.

Tony McCooch: But at the same time, we also, you know, in spite of all this, we did turn into a solid quarter of operating and financial performance. Over the next, I'll skip over the next two slides. This is the forward-looking statements, et cetera, that Mark Utting already alluded to or made reference to. Turning to slide four, I'll start with a brief look at the Porcupine Acquisition. Currently, we have claimed two operating gold mines, both Oil Pond and Borden, both on underground gold mines. And then the Panama Open Pit project is wrapping up the commercial levels of production, of which we expect to to to achieve sometime by by by Q4 of 2026. We have, you know, I think some of the other exciting parts about it, though, is we saw we have a substantial large resource base, a very attractive near-term growth project.

Tony Makuch: At the same time, in spite of all this, we did turn into solid quarter of operating and financial performance. I'll skip over the next two slides. This is forward-looking statements, etc., that Mark Utting already alluded to or made reference to. Turning to slide 4, I'll start with a brief look at the Porcupine Op acquisition. Through it, we obtained 2 operating gold mines, both Hoyle Pond and Borden, both underground gold mines, and then the Pamour open pit project that's wrapping up the commercial levels of production, which we expect to achieve sometime by Q4 of 2026.

Speaker #5: Over the next, I'll skip over the next two slides. This is forward-looking statements, etc., that Mark Unning already alluded to or made reference to.

Speaker #5: Turning to slide four, I'll start with a brief look at the Porcupine acquisition. Through it, we obtained two operating gold mines: Holopan and Borden, both of which are underground gold mines.

Speaker #5: And then the Panama Open Pit Project, as we're wrapping up the commercial levels of production, of which we expect to to to achieve sometime in by by by Q4 of 2026.

Speaker #5: We have, you know, I think some of the other exciting parts about it, though, is we still have a substantial large resource base.

Tony Makuch: We have, I think, some of the other exciting parts about it, though, is we have a substantial large resource base, a very attractive near-term growth projects that do these targets, main targets being the TDZ zone and the Owl Creek, sorry, and the dome mine project. Then you say lots of exploration upside throughout the Timmins Camp and at Borden. You kind of look at Timmins Camp and you say, Well, there have been 75 million ounces of gold mined over 100 years. We come up with a major resource here as part of the acquisition of over 15 million ounces. That's really only a subset of a lot of other projects and targets that we could advance. I'm sure Eric and the guys who will go through stuff give you some color in where the excitement is there on the exploration side.

Speaker #5: A very attractive near-term growth project that through these target main main targets being the TBZ zone. And the Holopan at Holopan, sorry, and the dome mine project.

Tony McCooch: The main target being the TDZ zone and the Oil Pond, at Oil Pond, sorry, and the gold mine project. And they say, and you know, lots of exploration of upside throughout the Timmins Camp and at Borden. And you kind of, you look at it, Timmins Camp, and you say, well, there's been 75 million ounces of gold mined over 100 years. And you know, we come up with, with a maybe resource here as part of the acquisition of over 15 million ounces. But you know, that's really only a subset of of a lot of other, things, projects, and targets that we could advance. And I'm sure Eric and the guys will go through stuff to give you some color and where the excitement is there on the exploration side. I'll turn to slide six.

Speaker #5: And as I say, and you know, there is lots of exploration of upsides throughout the Timmins camp. At Borden, when you look at the Timmins camp, you see that there have been 75 million ounces of gold mined over 100 years.

Speaker #5: And you know, we come up with with a maybe resource here as part of the acquisition of over 15 million ounces. But you know, that's that that's really only a subset of of a lot of other things projects and targets that we could advance and I'm sure Eric and the guys will go through stuff, give you some color in where the excitement is there on the exploration side.

Speaker #5: I'll turn to slide six so you know, and just really this is part of a you know, as we reach the porcupine the agreement for porcupine, we and and in order to support the financing, we did complete the test report to a PDA level.

Tony Makuch: I'll turn to slide 6. I'm just reading this as part of as we reached the agreement for Porcupine, and in order to support the financing, we did complete a threshold report to a PEA level. I'm just going to discuss it briefly as we see it as a base from which to improve. The results from the report were favorable. There was average production of 285,000 ounces over the next 10 years, a total mine life of 22 years, and based on a $3,300 gold price, the net present value of that was $3.4 billion. For anyone who thinks that our share price has had its run, our market cap as of yesterday was just around $2 billion USD. Very importantly, though, almost none of the upside we've seen in Porcupine is included in the PEA.

Tony McCooch: So you know, I'm just reading, this is part of a, you know, as we reached the Porcupine region, the, and in order to support financing, we did complete a test report to a PEA level. you know, I'm just going to discuss it briefly as we see the space from which to improve. The results from the report were favorable. There was average production of 285,000 ounces over the next 10 years. The total mine life is 22 years. And based on a $3,300 gold price, the net price and value of that was 3.4 billion. We're running one of the things that our share price has had its run. Our market cap as of yesterday was just just around 2 billion US. Very importantly, though, almost none of the upside we see in Porcupine is included in the PEA.

Speaker #5: You know, I'm just going to discuss it briefly as we see it as a basis on which to improve. The results from the report were favorable.

Speaker #5: There was average production of 285,000 ounces. Over the next 10 years, with a total mine life of 22 years, and based on a $3,300 gold price, the net price and value of that was $3.4 billion.

Speaker #5: Running one of the things that our share price has had its run, our market cap as of yesterday was just around $2 billion.

Speaker #5: Very importantly, though, almost none of the upside we've seen in Porcupine is included in the PDA. That includes main opportunities to grow and improve existing operations and reduce costs.

Tony Makuch: That includes main opportunities to grow and improve existing operations and reduce costs, the major new projects like Dome and TDZ and all the exploration upside in the story. Obviously, it also doesn't include any value for Cordero in Mexico, which is one of the world's leading development-stage silver projects, which once built, would be probably the 2nd largest silver mine in Mexico, maybe the largest, depending on timing, and definitely one of the top 10 zinc mines in all Mexico. Turning to slide 7 for Q2 2025, just giving a sense of the performance for the quarter. We did commence a number of key investment programs aimed at growing production, lowering costs of extending mine life. We had finalized plans for studies to be done at both TDZ and Dome. At the same time, we turned in some strong results.

Tony McCooch: That includes main opportunities to grow and improve existing operations and reduce costs. The major new projects like gold and TDZ and all the exploration upside in the story. And obviously, it also doesn't include any value for Cordero in Mexico, which is one of the world's leading development sites. Silver project, which once built, would be probably the second largest silver mine in Mexico, maybe the largest depending on timing, and definitely one of the top 10 big mines in all of Mexico. Turning to slide seven for Q2 2025, you know, just giving a sense of the performance for the quarter. We did commence a number of key investment programs, aimed at growing production, lowering costs, and extending mine life. We finalized plans for studies to be done at both TDZ and GOM. And at the same time, we turned in some strong results.

Speaker #5: The major new projects like Dome and TBZ, as well as all the exploration outside in the storage, are significant. Obviously, this also doesn't include any value for Cordero in Mexico, which is one of the world's leading development-stage silver projects. Once built, it would probably be the second largest silver mine in Mexico.

Speaker #5: Maybe the largest, depending on timing, and definitely one of the top 10 zinc mines in all of Mexico. Turning to slide seven, for Q2 2025, it was a, you know, just giving you a sense of the performance for the quarter.

Speaker #5: We commenced a number of key investment programs aimed at growing production, lowering costs, and extending mine life. We finalized plans for studies to be conducted at both TBZ and Dome.

Speaker #5: And at the same time, we turned in some strong production results. For the 76 days we owned Porcupine, we produced 50,000 ounces of gold. Our gold sales were 42,000 ounces.

Tony McCooch: Production for 76 days we owned. Porcupine was 50,000 ounces of gold. Our gold sales were 42,000 ounces. That kind of gap between production sales is not something you'll see again. One of our KPIs is always going to be gold recovered, equal gold poured, equal gold sold. This is just some timing issues and some, you know, growing pains in terms of getting ounces properly poured and and and and sold. We've worked out those bugs. Problem sustaining cash costs for the quarter was just over $2,100 per ounce sold at the site level. Porcupine's ASIC was about $1,872 an ounce. And I want to point out that these costs do not include Panama, which is a capital project that is still ramping up. On this slide eight now, it it deals with the financial performance. I know Allison will get into more details a little later.

Tony Makuch: Production for the 7 days we owned Porcupine was 50,000 ounces of gold. Our gold sales were 42,000 ounces. That kind of gap between production sales is not something you will see again. One of our KPIs is always going to be gold recovered equal gold poured equal gold sold. This was just if on timing issues and some growing pains in terms of getting ounces properly poured and sold. We've worked out those bugs. All-in sustaining costs for the quarter was just over $2,100 per ounce sold. At the site level, Porcupine's AISC was about $1,872 an ounce. I want to point out that these costs do not include PAMO, which is a capital of projects that is still ramping up. Going to slide 8 now. It deals with the financial performance. I know Alison will get into more details a little later.

Speaker #5: That kind of gap between production and sales is not something you will see again. One of our KPIs is always going to be gold recovered equal gold poured equal gold sold.

Speaker #5: This was just if I'm timing issues and some, you know, growing pains in terms of getting ounces properly poured and sold.

Speaker #5: We've worked out those bugs. Following sustaining costs for the quarter were just over $2,100 per ounce sold. At the site level, Porcupine's ASIC was about $1,872 an ounce.

Speaker #5: And I want to point out that these costs do not include Panama, which is a capital project that's still ramping up. Going to slide eight now, it deals with the financial performance.

Speaker #5: I know Alison will get into more details a little later. I'll just say that we generated some solid financial results. Adjusted net earnings per share were $0.04 a share.

Tony McCooch: I'll just say that we generated some solid financial results. Adjusted net earnings per share were 4 cents a share. The adjustments were exclusion of acquisition and transition-related costs and some non-cash FX losses. Speaking of cash, we generated strong cash flow. We had $67 million of operating cash flow and $27 million of free cash flow. If we had sold everything we produced, that cash flow would have been meaningfully higher. It is not often that gold companies start out with producing assets. It is even less common to start out with producing assets that are profitable and generating free cash flow. With Porcupine, that is what we've done. So we have a new gold company that's actually generating profit, making money now. You know, we can take some credit for the ability to move forward in the assets we have claimed. Definitely, the gold price helps us.

Tony Makuch: I'll just say that we generated some solid financial results. Adjusted net earnings per share were $0.04 per share. The adjustments were the exclusion of acquisition and transition-related costs and some non-cash FX losses. Speaking of cash, we generated strong cash flow. We had $67 million of operating cash flow and $27 million of free cash flow. We had sold everything we produced. That cash flow would have been meaningfully higher. It is not often that gold companies start out with producing assets. It is even less common to start out with producing assets that are profitable and generating free cash flow. With Porcupine, that is what we've done. We have a new gold company that's actually generating profit, making money now. We can take some credit for the ability to move forward in the assets we obtain. Definitely, the gold price helps us.

Speaker #5: The adjustments were the exclusion of acquisition and transition-related costs, as well as some non-cash FX losses. Speaking of cash, we generated strong cash flow. We had $67 million of operating cash flow and $27 million of free cash flow.

Speaker #5: We had sold everything we produced, and cash flow would have been meaningfully higher. It is not often that gold companies start out with producing assets.

Speaker #5: It is even less common to start out with producing assets that are profitable and generating free cash flow. With Porcupine, that is what we've done.

Speaker #5: So we have a a new gold company at you know, that's actually generating profit, making money now. You know, we we we can take some credit for for for for the ability to to move forward in the assets we we obtained.

Speaker #5: Definitely, the gold price helps us. And you know, I guess as we progress over the next few quarters and into the next few years, you can judge us maybe on our own performance and not just on the gold price and what the market's doing for us and what others have done for us.

Tony McCooch: And you know, I guess as we progress over the next few quarters and into the next few years, you can judge us maybe on our own performance and not just on what the gold price and the market is doing for us or what others have done for us. Slide nine looks at the investment. I mentioned that we commenced a number of investment programs during the second quarter. Total capital expenditures were $44 million, 28 million of which was growth capital. We made some good progress at the GOM mill during Q2. We took advantage of the mill shutdown in late April to advance a number of programs. We also advanced a major tailings project. Panama accounted for more than $20 million of the total CAPEX. The largest piece of that was pre-scripting. You will hear more from Pierre. We produced 7,000 ounces from Panama in Q2.

Tony Makuch: I guess as we progress over the next few quarters and into the next few years, we can judge us maybe on our own performance and not just on what the gold price and the market is doing for us, what that has done for us. Slide 9 looks at the investment. I mentioned that we commenced a number of investment programs during Q2. Total capital expenditures were $44 million, $28 million of which was growth capital. We made some good progress at the dome mill during Q2. We took advantage of the mill shutdown in late April to advance a number of programs. We also advanced a major tailings project. Pamour accounted for more than $20 million of the total CAPEX. The largest piece of that was pre-stripping. You will hear more from Pierre, but we produced 7,000 ounces from Pamour in Q2. This is pre-production ounces.

Speaker #5: Slide nine looks at the investment. I mentioned that we commenced a number of investment programs during the second quarter. Global capital expenditures were $44 million.

Speaker #5: $28 million of which was growth capital. We made some good progress at the Dome Mill during Q2. We took advantage of the mill shutdown in late April to advance a number of programs.

Speaker #5: We also advanced a major tailings project. Panama accounted for more than $20 million of the total CapEx. The largest piece of that was pre-stripping.

Speaker #5: You will hear more from Pierre that we produced 7,000 ounces from Panama in Q2. This is pre-production ounces. We expect these these numbers from Panama to go up over the next few quarters as stripper issue comes down and as I say, you know, we intend on achieving commercial production sometime in in in in by Q4 of 2026.

Tony McCooch: This is pre-production ounces. We expect these numbers from Panama to go up over the next few quarters as the strip ratio comes down. And as I say, you know, we intend on achieving commercial production sometime in by Q4 of 2026. And once we get beyond that, we expect production to normalize somewhere around 150,000 ounces a year. Of the 16 million ounces of sustaining CAPEX in the quarter, the majority of it was at Oil Pond and Borden, largely related to capital development. In terms of exploration, although Eric Callio discussed it in more detail, I will say that we are ramping up an extensive exploration program. We expect to do about 140,000 meters of drilling this year.

Tony Makuch: We expect these numbers from Pamour to go up over the next few quarters as the strip ratio comes down. As I say, we intend on achieving commercial production sometime by Q4 2026. Once we get beyond that, we expect production to normalize somewhere around 150,000 ounces a year. Of the 16 million ounces of sustaining CAPEX in the quarter, the majority of it was at Owl Creek and Borden, largely related to capital development. In terms of exploration, although Eric Kallio discussed it in more detail, I will say that we are ramping up an extensive exploration program, expect to do about 140,000 meters of drilling this year. Really, it's the beginning of setting ourselves up. We'll be doing that and even more up to double that on an annual basis, I would like to believe, for about 10 years.

Speaker #5: And once we get beyond that, we expect production to normalize somewhere around 150,000 ounces a year. Of the 16 million ounces of sustaining CapEx in the quarter, the majority of it was at Holopan and Borden.

Speaker #5: Largely related to capital development. In terms of exploration, although Eric Callio discussed it in more detail, I will say that we are ramping up an extensive exploration program.

Speaker #5: Expect to do about 140,000 meters of drilling this year. Really, it's the beginning of setting ourselves up, and we'll be doing that—and even more—up to double that on an annual basis.

Tony McCooch: And really, if it's a beginning of setting ourselves up, we'll be doing that, that, and even more up to double that on an annual basis, I would like to believe, for about 10 years. That's maybe a forward-looking statement, but that's also a goal that we, you know, we've got lots of places to explore, and Eric's building up a solid exploration team with a lot of exciting new discoveries that can come. Slide 10 outlines some of our key priorities over the next while. A lot of the drilling we are doing is focused on resource conversion. We plan to complete a study updating this year's technical report that will include an initial reserve for Oil Pond, Borden, and Panama. And that study will be released sometime around the middle of next year.

Speaker #5: I would like to believe for about 10 years. That's maybe a forward-looking statement, but that's also a goal that we, you know, we've got a lot of places to explore. Eric's building up a solid exploration team with a lot of exciting new discoveries that can come.

Tony Makuch: That may be a forward-looking statement, but that's also a goal that we got a lot of place to explore. Eric's building up a solid exploration team with a lot of exciting new discoveries that can come. Slide 10 outlines some of our key priorities over the next while. A lot of the drilling we are doing is focused on resource conversion. We plan to complete a study updating this year's technical report that will include an initial reserve for Owl Creek, Borden, and Pamour. That study will be released sometime during the middle of next year. We will also complete studies for Dome Mine and the TDZ zone at Owl Creek for expected release in H1 2026. The Dome study will incur resource and provide a little bit more understanding on how we can move that forward.

Speaker #5: Slide 10 outlines some of our key priorities over the next while. A lot of the drilling we are doing is focused on resource conversion.

Speaker #5: We plan to complete a study updating this year's technical report that will include an initial reserve at Holopan, Borden, and Panama. That study will be released sometime around the middle of next year.

Speaker #5: We will also complete studies for the Dome Mine and the TBZ zone at Holopan, expected for release in the first half of 2026. The Dome study will focus on the current resource and provide a little bit more understanding on how we can move that forward.

Tony McCooch: We will also complete studies for the GOM mine and the TDZ zone at Oil Pond for expected release in the first half of 2026. The GOM study will focus on the incurred resource and provide a little bit more understanding on how how how we can move that forward. And and and and as well, the TDZ study, TDZ study, sorry, will include the release of an initial resource statement. Now I'd like to turn the call over to Allison White, our new CFO. Allison was the new, sorry, Allison was most recently CFO at SSR Mining and prior to that was with Newmont in a number of roles, including CFO of North American Operations. Very pleased to have her on board. Share it on.

Speaker #5: And, and, and, and, and as well, the TBZ study with TBZ study, sorry, will include the release of an initial resource statement. Now I'd like to turn the call over to Alison White, our new CFO.

Tony Makuch: As well, the TDZ study will include the release of an initial resource statement. Now, I'd like to turn the call over to Alison White, our new CFO. Alison was most recently CFO at SSR Mining, and prior to that, was with Newmont in a number of roles, including CFO for North American Operations. Very pleased to have her on board. Right on.

Speaker #5: Alan was sorry. Alison was most recently CFO at SSR Mining and, prior to that, was with Newmont in a number of roles, including CFO for North American Operations.

Speaker #5: Very pleased to have her on board. Carry on.

Speaker #2: Thanks, Tony. It’s a pleasure to be here. As part of the Discovery team, I'm going to start on slide 11 and review our financial performance for the quarter.

Allison White: Thanks, Tony. And it's a pleasure to be here as a part of the Discovery team. I'm going to start on slide 11 and review our financial performance for the quarter. Overall, it was a strong quarter, as Tony mentioned. As you heard, our adjusted net earnings were 28.4 million or 4 cents per share. Very importantly, we generated robust cash flow with operating cash flow of 67 million and free cash flow of 27 million, both during the balance sheet. Looking at the 27 million of free cash flow, it's important to keep in mind a couple of things. First, as Tony mentioned, our gold sales were 8,000 ounces below gold produced. We will make up those ounces in terms of sales during the third quarter. Secondly, we had close to $20 million of acquisition and transition-related costs that will not be repeated on a go-forward basis.

Alison White: Thanks, Tony. It's a pleasure to be here as a part of the Discovery team. I'm going to start on slide 11 and review our financial performance for the quarter. Overall, it was a strong quarter, as Tony mentioned. As you heard, our adjusted net earnings were $28.4 million or $0.04 per share. Very importantly, we generated robust cash flow with operating cash flow of $67 million and free cash flow of $27 million, both during the balance sheet. Looking at the $27 million of free cash flow, it's important to keep in mind a couple of things. First, as Tony mentioned, our gold sales were 8,000 ounces below gold produced. We will make up those ounces in terms of sales during Q3. Secondly, we had close to $20 million of acquisition and transition-related costs that will not be repeated on a go-forward basis.

Speaker #2: Overall, it was a strong quarter, as Tony mentioned. As you heard, our adjusted net earnings were $28.4 million, or $0.04 per share. Very importantly, we generated robust cash flow, with operating cash flow of $67 million and free cash flow of $27 million.

Speaker #2: Bolstering the balance sheet. Looking at the $27 million of free cash flow, it's important to keep in mind a couple of things. First, as Tony mentioned, our gold sales were 8,000 ounces below gold produced.

Speaker #2: We'll make up those ounces in terms of sales during the third quarter. Secondly, we had close to $20 million of acquisition and transition-related costs that will not be repeated on a go-forward basis.

Speaker #2: When you consider those factors, our $27 million of free cash flow was encouraging, but it could have been significantly higher. In future quarters, assuming similar pricing conditions, we do expect that it will be much higher.

Alison White: When you consider those factors, our $27 million of free cash flow was encouraging, it could have been significantly higher. In future quarters, assuming similar pricing conditions, we do expect that it will be much higher. Turning to slide 14. Sorry. Turning to slide 12. This slide shows the details of adjusted net earnings and reviews the difference between our net earnings of $5.5 million or $0.01 per share and our adjusted net earnings of $28.4 million or $0.04 per share. As you can see, there were $16.6 million of acquisition-related costs, primarily expenditures for legal, consulting, and advisory services, and other expenses related to the completion of the Porcupine acquisition. There were $1.6 million of costs related to the acquisition on an after-tax basis, including a variety of activities around Discovery's integration of the Porcupine operation.

Allison White: When you consider those factors, our $27 million of free cash flow was encouraging, but it could have been significantly higher. In future quarters, assuming similar pricing conditions, we do expect that it will be much higher. Turning to slide 12, sorry. Turning to slide 12, this slide shows the details of adjusted net earnings and reveals the difference between our net earnings of $5.5 million or 1 cent per share and our adjusted net earnings of $28.4 million or 4 cents per share. As you can see, there were $16.6 million of acquisition-related costs, primarily expenditures for legal, consulting, and advisory services, and other expenses related to the completion of the Porcupine acquisition. There were $1.6 million of costs related to the acquisition on an after-tax basis, including a variety of activities around Discovery's integration of the Porcupine operation.

Speaker #2: Turning to slide sorry. Turning to slide 12, this slide shows the details of adjusted net earnings. And reviews the difference between our net earnings of 5.5 million dollars or 1 cent per share and our adjusted net earnings of 28.4 million dollars or 4 cents per share.

Speaker #2: As you can see, there were $16.6 million of acquisition-related costs, primarily expenditures for legal, consulting, and advisory services, and other expenses related to the completion of the Porcupine acquisition.

Speaker #2: There were $1.6 million of costs related to the acquisition on an after-tax basis, including a variety of activities around Discovery's integration of the Porcupine operation.

Speaker #2: We also had after-tax FX losses of $4.7 million, largely a function of the weakening US dollar during the quarter. As you've heard earlier in the call, we became the US dollar reporting issuer starting in the second quarter.

Alison White: We also had after-tax FX losses of $4.7 million, largely a function of the weakening US dollar during the quarter. As you've heard earlier in the call, we became a US dollar recording issuer starting in Q2. As I move to slide 13, slide 13 looks at EBITDA, which totaled $55.2 million in Q2. If I touch on each of the add-back items, let's look at financing costs first. The $14.3 million of financing costs mainly relates to the appreciation cost of $7.8 million from reclamation and deferred consideration, as well as $6.5 million in interest expense related to the Franco-Nevada royalty and its associated accounting impacts. Depletion and depreciation of $16.4 million related mainly to the addition of over $560 million of depletable mineral interests and $314 million of depreciable plant and equipment related to the Porcupine acquisition.

Allison White: We also had after-tax FX losses of $4.7 million, largely a function of the weakening US dollar during the quarter. As you've heard earlier in the call, we became a US dollar reporting issuer starting in the second quarter. So as I move to slide 13, slide 13 looks at EBITDA, which totaled $55.2 million in Q2. If I touch on each of the add-back items, let's look at financing costs first. The $14.3 million of financing costs mainly relate to the accretion cost of $7.8 million from reclamation and deferred consideration, as well as $6.5 million in interest expense related to the Franco-Nevada royalty and its associated accounting impact. Depletion and depreciation of $16.4 million related mainly to the addition of over $560 million of depletable mineral interest and $314 million of depreciable plants and equipment related to the Porcupine acquisition.

Speaker #2: So as I move to slide 13, slide 13 looks at EBITDA, which totaled $55.2 million in Q2. If I touch on each of the add-back items, let's look at financing costs first.

Speaker #2: The $14.3 million in financing costs mainly relates to the accretion cost of $7.8 million from reclamation and deferred consideration, as well as $6.5 million in interest expense related to the Franco-Nevada royalty and its associated accounting impacts.

Speaker #2: Depreciation of $16.4 million related mainly to the addition of over $560 million of depletable mineral interest and $314 million of depreciable plant and equipment related to the Porcupine acquisition.

Speaker #2: Finally, the income tax expense of about $19 million is attributable to the revenues from production during the quarter. Moving on to Slide 14, this breaks down both cash costs and all-in sustaining costs.

Allison White: Finally, income tax spend of about $19 million is attributable to the revenues from production during the quarter. Moving on to slide 14, this breaks down both cash costs and all in sustaining costs. I want to reiterate one more time that our consolidated cash costs and all in sustaining costs do not include the MOR, which is a capital project that's ramping up toward commercial production levels. I won't go through each contributor to the costs that are shown here. However, I'll highlight that the site level AFC of $1,872 an ounce excludes the $213 an ounce ray box in the chart, which represents G&A and share-based payments. There is also about $38 an ounce in the $441 an ounce of sustaining capital expenditures, which is deemed corporate and related primarily to the Cordero project costs. When we move on to slide 15, it dives into capital expenditures.

Alison White: Finally, income tax spent of about $19 million is attributable to the revenues from production during the quarter. Moving on to slide 14, this breaks down both cash costs and All-in sustaining costs. I want to reiterate one more time that our consolidated cash costs and All-in sustaining costs do not include the Pamour, which is a capital project that's ramping up toward commercial production levels. I won't go through each contributor to the costs that are shown here. However, I'll highlight that the site-level AISC of $1,872 an ounce excludes the $213 an ounce gray box in the chart, which represents G&A and share-based payments. There is also about $38 an ounce in the $441 an ounce of sustaining capital expenditures, which is deemed corporate and related primarily to the Cordero project costs. We move on to slide 15. It dives into capital expenditures.

Speaker #2: I want to reiterate one more time that our consolidated cash costs and all-in sustaining costs do not include the Moore, which is a capital project that's ramping up toward commercial production levels.

Speaker #2: I won't go through each contributor to the costs that are shown here. However, I'll highlight that the site-level ASC of $1,872 an ounce excludes the $213 an ounce grey box in the chart, which represents G&A and share-based payments.

Speaker #2: There is also about $38 an ounce in the $441 an ounce of sustaining capital expenditures, which is deemed corporate and related primarily to the Cordero project costs.

Speaker #2: If we move on to slide 15, it dives into capital expenditures. I know that Pierre Rock will also discuss CapEx in his operating review, but I'm going to touch on it briefly before we get there.

Alison White: I know that Pierre Rocque will also discuss CAPEX in his operating review. I'm going to touch on it briefly before we get there. Total capital expenditures during Q2 were $44.2 million. Sustaining capital was $16.1 million, while growth capital totaled $28.1 million. Just looking at the chart, you can see that Pamour accounted for the largest component of total capital. CAPEX at Pamour totaled $22.3 million, all included in growth capital expenditures. Of the $22.3 million, $14 million related to pre-stripping, with the remainder mainly reflecting allocated capital for the tailings management project. I will point out that for reporting purposes, CAPEX at the mill and the 6 tailings dam are allocated to the operating mine. The tailings project, in total, accounted for $16 million of capital expenditures. I'll let Pierre give you more details on that project a little bit later in the call.

Allison White: I know that Pierre Roch will also discuss CAPEX in his operating review, but I'm going to touch on it briefly before we get there. Total capital expenditures during Q2 were $44.2 million. Sustaining capital was $16.1 million, while growth capital totaled $28.1 million. Just looking at the chart, you can see that the MOR accounted for the largest component of total capital. CAPEX at the MOR totaled $22.3 million, all included in growth capital expenditures. Of the $22.3 million, $14 million related to pre-stripping, with the remainder mainly reflecting allocated capital for the tailings management project. I will point out that for reporting purposes, CAPEX at the mill and the number six tailings dam are allocated to the operating mine. The tailings project in total accounted for $16 million of capital expenditures. I'll let Pierre give you more details on that project a little bit later in the call.

Speaker #2: Total capital expenditures during Q2 were $44.2 million. Sustaining capital was $16.1 million, while growth capital totaled $28.1 million. Just looking at the chart, you can see that the growth capital accounted for the largest component of total capital.

Speaker #2: CapEx set for more totaled $22.3 million, all included in growth capital expenditures. Of the $22.3 million, $14 million related to pre-stripping, with the remainder mainly reflecting allocated capital for the tailings management project.

Speaker #2: I will point out that, for reporting purposes, CapEx at the mill and the number six tailings dam are allocated to the operating mines. The tailings project, in total, accounted for $16 million of capital expenditures.

Speaker #2: I'll let Pierre give you more details on that project a little bit later in the call. The other significant areas for capital investment involve sustaining capital expenditures at Borden and Holopan.

Alison White: The other significant areas for capital investment involve sustaining capital expenditures at Borden and Owl Creek. The largest component of these expenditures is capital development. As we continue to set the mines up for future production, we have also commenced investment programs to update infrastructure and equipment fleets. If we turn to slide 16, we can take a look at our cash balance. We had cash of CAD 252.5 million as of the end of the quarter on 30 June. Just yesterday, our cash balance was CAD 279 million. As that suggests, we are continuing to generate solid free cash flow. As you can see from the chart, the main contributor to the buildup in cash during Q2 was the financing package that we arranged concurrent with the Porcupine acquisition.

Allison White: The other significant areas for capital investment involve sustaining capital expenditures at Borden and Oil Pond. The largest component of these expenditures is capital development. And as we continue to set the mines up for future production, we have also commenced investment programs to update infrastructure and equipment fleets. And if we turn to slide 16, we can take a look at our cash balance. We had cash of $252.5 million as of the end of the quarter on June 30th. Just yesterday, our cash balance was $279 million. As that suggests, we're continuing to generate solid free cash flow. And as you can see from the chart, the main contributor to the buildup in cash during Q2 was the financing package that we arranged concurrent with the Porcupine acquisition.

Speaker #2: The largest component of these expenditures is capital development. As we continue to set the mines up for future production, we have also commenced investment programs to update infrastructure and equipment fleets.

Speaker #2: And if we turn to slide 16, we can take a look at our cash balance. We had cash of $252.5 million as of the end of the quarter on June 30.

Speaker #2: Just yesterday, our cash balance was $279 million. As that suggests, we're continuing to generate solid free cash flow. And as you can see from the chart, the main contributor to the buildup in cash during Q2 was the financing package that we arranged concurrent with the Porcupine acquisition.

Speaker #2: The $468 million you see is comprised of $300 million received from Franco-Nevada for the 2.25 percent life-of-mine royalty and the 2 percent royalty-linked note.

Allison White: The $468 million you see is comprised of $300 million received from Franco-Nevada for the 2.25% life of mine royalty and the 2% royalty linked note. The other $168.7 million represents the net proceeds from the subscription receipt financing completed in February of this year. With the closing of the acquisition, the $275 million sub-receipts were exchanged on a one-for-one basis into common shares. The other major contributor to higher cash was the $67 million of operating cash flow. These inflows were partially offset by the $200 million of cash consideration paid to Newmont for the acquisition. The cash component of our capital expenditures was just under $40 million. And we had $51.6 million of restricted cash, which is backing government-required financial assurances in relation to closure plans involving the Porcupine assets.

Alison White: The $468 million you see is comprised of $300 million received from Franco-Nevada for the 2.25% life-of-mine royalty and the 2% royalty-linked note. The other $168.7 million represents the net proceeds from the subscription receipt financing completed in February of this year. With the closing of the acquisition, the $275 million sub-receipts were exchanged on a one-for-one basis into common shares. The other major contributor to higher cash was the $67 million of operating cash flow. These inflows were partially offset by the $200 million of cash consideration paid to Newmont for the acquisition. The cash component of our capital expenditures was just under $40 million. We have $51.6 million of restricted cash, which is backing government-required financial assurances in relation to closure plans involving the Porcupine assets.

Speaker #2: The other $168.7 million represents the net proceeds from the subscription receipt financing completed in February of this year. With the closing of the acquisition, the $275 million sub-receipts were exchanged on a one-for-one basis into common shares.

Speaker #2: The other major contributor to higher cash was the $67 million of operating cash flow. These inflows were partially offset by the $200 million of cash consideration paid to Newmont for the acquisition.

Speaker #2: The cash component of our capital expenditures was just under $40 million. We had $51.6 million of restricted cash, which is backing government-required financial assurances in relation to closure plans involving the Porcupine assets.

Speaker #2: I'll also point out that, in addition to our cash costs, we have a $100 million credit facility from Franco that remains undrawn, which is adding to our total liquidity balance.

Alison White: I'll also point out that in addition to our cash costs, we have a $100 million credit facility from Franco-Nevada that remains undrawn, which is adding to our total liquidity balance. If we flip over to slide 17, we've obviously had and continue to have a significant accounting exercise following the completion of the Porcupine acquisition. This slide shows the purchase price allocation for Q2. I want to stress that the numbers represented the preliminary estimates of the fair values of identified assets that were acquired and the liabilities assumed from Newmont. It's a complex exercise, and we'll finalize the determination of the fair values of the assets and the liabilities acquired and the deferred taxes within the period allowed, which is 12 months from the acquisition date. You'll see that the value of the net assets listed on the closing date was $524 million.

Allison White: I'll also point out that in addition to our cash costs, we have a $100 million credit facility from Franco that remains undrawn, which is adding to our total liquidity balance. And if we flip over to slide 17, we've obviously had and continue to have a significant accounting exercise following the completion of the Porcupine acquisition. This slide shows the purchase price allocation for the second quarter. I want to stress that the numbers represented the preliminary estimate of the fair values of identified assets that were acquired and the liabilities assumed from Newmont. It's a complex exercise, and we will finalize the determination of the fair values of the assets and the liabilities acquired and the deferred taxes within the period allowed, which is 12 months from the acquisition date. You'll see that the value of the net assets listed on the closing date was $524 million.

Speaker #2: And if we flip over to slide 17, we've obviously had, and continue to have, a significant accounting exercise following the completion of the Porcupine acquisition.

Speaker #2: This slide shows the purchase price allocation for the second quarter. I want to stress that the numbers represent preliminary estimates of the fair values of identified assets that were acquired and the liabilities assumed from Newmont.

Speaker #2: It's a complex exercise, and we'll finalize the determination of the fair values of the assets, the liabilities acquired, and the deferred taxes within the period allowed, which is 12 months from the acquisition date.

Speaker #2: You'll see that the value of the net assets listed on the closing date was $524 million. That's higher than the purchase price disclosed when the deal was announced.

Alison White: That's higher than the purchase price disclosed when the deal was announced. That's entirely due to the significant increase in Discovery's share price following the deal's announcement. Basically, Newmont benefited from the market's view that Discovery entered a very good deal, and the share price reflected that growth between the timing of the deal announcement and the finalization of the acquisition. With that, I'm going to turn the call over to Pierre Rocque, our chief operating officer.

Allison White: That's higher than the purchase price disclosed when the deal was announced. That's entirely due to the significant increase in Discovery share price following the deal's announcement. Basically, Newmont benefited from the market's view that Discovery entered a very good deal, and the share price reflected that growth between the timing of the deal announcement and the finalization of the acquisition. And with that, I'm going to turn the call over to Pierre Roch, our Chief Operating Officer.

Speaker #2: That's entirely due to the significant increase in Discovery's share price following the deal's announcement. Basically, Newmont benefited from the market's view that Discovery entered a very good deal, and the share price reflected that growth between the timing of the deal announcement and the finalization of the acquisition.

Speaker #2: And with that, I'm going to turn the call over to Pierre Rock, our Chief Operating Officer.

Speaker #6: Thank you, Alison. I'll start with Holopan on slide 18. For those who may not know, Holopan is one of Canada's highest-grade gold mines, with an excellent track record for replacing reserves.

Pierre Rocque: Thank you, Allison. I'll start with Hoyle Pond on slide 18. For those who may not know, Hoyle Pond is one of Canada's highest-grade gold mines with an excellent track record for replacing reserves. Total of 45,160 tons were mined from 16 April to the end of June 2025, for an average mining rate of 594 tons per day. Production mainly came from the Lowest zone on the 1965 and 1985 levels. Total material milled was 98,000 tons at a grade of 5.5 gram per ton. Both the tonnage and grades milled largely reflected the processing of stockpiles during the Q2. Going forward, we do not anticipate processing much stockpile material during H2 of the year.

Pierre Roch: Thank you, Allison. I'll start with Oil Pond on slide 18. For those who may not know, Oil Pond is one of Canada's highest-ranked gold mines with an excellent track record for replacing reserves. A total of 45,160 tons were mined from April 16 to the end of June 2025, for an average mining rate of 594 tons per day. Production mainly came from the lower est zone on the 1965 and 1985 levels. Total material milled was 98,000 tons at the grade of 5.5 gram per ton. Both the tonnage and grade milled largely reflected the processing of stockpiles during the quarter. Moving forward, we do not anticipate processing much stockpile material during the second half of the year.

Speaker #6: A total of 45,160 tons were mined from April 16 to the end of June 2025, with an average mining rate of 594 tons per day.

Speaker #6: Production mainly came from the lower S zone at the 1965 and 1985 levels. Total material milled was 98,000 tons at a grade of 5.5 grams per ton.

Speaker #6: Both the tonnage and grade mill largely reflected the processing of stockpiles during the quarter. Going forward, we do not anticipate processing much stockpile material during the second half of the year.

Speaker #6: Operating development during Q2 of 2025 was mainly focused on the main production areas in the lower S zone, as well as in areas of the upper mine for access to narrow high-grade veins, which is currently commented.

Pierre Roch: Operating development during Q2 of 2025 was mainly focused on the main production areas in the lower est zone, as well as in areas of the upper mine where access to narrow high-grade veins is currently commonplace. Capital development activities during the quarter mainly involved continuing to extend the main rent to that in the lower est zone. Production costs in Q2 totaled around $20.9 million, with operating cash costs around sold averaging $1,566, and all in sustaining costs around sold averaging $2,036. We expect lower all in sustaining costs in the second half of the year as average grades will increase. Sustaining capital expenditures mainly related were mainly related to capital development activities, as well as Oil Pond's allocation of capital expenditures that are related to the tailing management area. Turning to Borden on slide 19.

Pierre Rocque: Operating development during Q2 2025 was mainly focused on the main production areas in the Lowest zone, as well as in areas of the upper mine where access to narrow, high-grade veins is currently constrained. Capital development activities during the quarter mainly involved continuing to extend the main ramp to that in the Lowest zone. Production cost in Q2 totaled around $20.9 million, with operating cash cost around sold averaging $1,566 and all-in sustaining costs around sold averaging $2,036. We expect lower all-in sustaining costs in the H2 of the year as average grades will increase. Sustaining capital expenditures were mainly related to capital development activities as well as Hoyle Pond's allocation of capital expenditures that are related to the tailing management area. Turning to Borden on slide 19.

Speaker #6: Capital development activities during the quarter mainly involved continuing to extend the main branch to that in the lower S zone. Production costs in Q2 totaled around $20.9 million.

Speaker #6: With operating cash costs around gold sold, averaging $1,566, and all-in sustaining costs around gold sold, averaging $2,036, we expect lower all-in sustaining costs in the second half of the year as average grades will increase.

Speaker #6: Sustaining capital expenditures were mainly related to capital development activities, as well as Holopan's allocation of capital expenditures that are related to the tailings management area.

Speaker #6: Turning to Borden, on slide 19, as you may know, Borden is close to the town of Chablot, approximately 190 kilometers from the dome mill.

Pierre Rocque: As you may know, Borden is close to the town of Chapleau, approximately 190 km from the Dome Mill. We truck ore to Dome. Borden is located on a large land position that is underexplored and has significant exploration upside. Eric will talk about this in a few minutes. Commercial production started at Borden in 2019, and the mine has produced around 600,000 oz to date. During Q2, the mine produced 27,000 oz from processing 166,000 tons at an average grade of 5.6 g per ton. Mine production during the quarter was 124,000 tons, for an average mining rate of just over 1,600 tons per day. The issue we had was trucking availability. By adding stockpile ore from earlier in the quarter, we were able to process about 2,000 tons per day for the quarter.

Pierre Roch: As you may know, Borden is close to the town of Shaplo, approximately 190 kilometers from the GOM mill. We truck the ore to GOM. Borden is located on a large land position that is underexplored and has significant exploration upside. Eric will talk about this in a few minutes. Commercial production started at Borden in 2019, and the mine has produced around 600,000 ounces to date. During Q2, the mine produced 27,000 ounces from processing 166,000 tons at an average grade of 5.6 gram per ton. Mine production during the quarter was 124,000 tons of an average mining rate of just over 1,600 tons per day. The issue we had was trucking availability. By adding stockpiles of ore from earlier in the quarter, we were able to process about 2,000 tons per day for the quarter.

Speaker #6: We trucked the ore to Dome. Borden is located on a large land position that is underexplored and has significant exploration upside. Eric will talk about this in a few minutes.

Speaker #6: Commercial production started at Borden in 2019, and the mine has produced around 600,000 ounces to date. During Q2, the mine produced 27,000 ounces from processing 166,000 tons at an average grade of 5.6 grams per ton.

Speaker #6: Mine production during the quarter was 124,000 tons, for an average mining rate of just over 1,600 tons per day. The issue we had was trucking availability.

Speaker #6: By adding stockpile to ore from earlier in the quarter, we were able to process about 2,000 tons per day for the quarter. Operating development during the quarter was mainly focused on the west central and upper east zones.

Pierre Roch: Operating development during the quarter was mainly focused on the west, central, and upper east zones. The capital development primarily related to the continued advancement of the main ramp and the exploration drift on the 575 level. Production costs in the second quarter totaled $22 million, with operating cash costs around sold averaging $1,175. All in sustaining costs around sold averaged $1,621 for the quarter. Sustaining capital expenditures totaled $9 million, with capital development accounting for 5.7 million and the remainder related to allocated tailings management area expenditures, as well as investment in infrastructure and new equipment. Turning to Panama on slide 20, it is our open pit project. Initial production was recorded in early 2025, and we are currently ramping up towards commercial levels of operation, which we expect in 2026. This timing is driven by the watering requirement. It has been the wet year so far in Timmins.

Pierre Rocque: Operating development during the quarter was mainly focused on the west, central, and upper-east zones, with capital development primarily related to the continued advancement of the main ramp and the exploration drift on the 575 level. Production cost in Q2 totaled $22 million, with operating cash cost around sold averaging $1,175, All-in sustaining cost around sold average $1,621 for the quarter. Sustaining capital expenditures totaled $9 million, with capital development accounting for $5.7 million and the remainder related to allocated tailings management area expenditures, as well as investment in infrastructure and new equipment. Turning to Pamour on slide 20. It is our open-pit project. Initial production was recorded in early 2025, and we are currently ramping up towards commercial levels of operation, which we expect in 2026. This timing is driven by the watering requirements. It has been a wet year so far in Porcupine.

Speaker #6: The capital development primarily related to the continued advancement of the main branch and the exploration drift on the 575 level. Production costs in the second quarter totaled $22 million.

Speaker #6: With operating cash costs around sold averaging $1,175, and all-in sustaining costs around sold averaging $1,621 for the quarter. Sustaining capital expenditures totaled $9 million, with capital development accounting for $5.7 million.

Speaker #6: And the remainder related to allocated tailings management area expenditures, as well as investment in infrastructure and new equipment. Turning to Panama on slide 20, within our open pit projects, initial production was recorded in early 2025.

Speaker #6: And we are currently ramping up towards commercial levels of operation, which we expect in 2026. This timing is driven by the watering requirements. It has been a wet year so far in Timmins.

Speaker #6: There was considerable pre-stripping activity ongoing during the second quarter. We moved 2.7 million tons of waste versus 104,000 tons of mineralization. Mill feed from the mine during the second quarter was mainly from bench number 19 of the Phase One open pit.

Pierre Roch: There was considerable pre-stripping activity ongoing during the second quarter. We moved 2.7 million tons of waste to preserve 104,000 tons of mineralizations. Mill seed from the mine during the second quarter was mainly from bench number 19 of the phase one open pit, with production from bench number 13 commencing late in the quarter. Mill seed from Panama is expected to increase significantly in the second half of the year, with the strip ratio expected to average below 10 to 1 during the final quarter of the year. In addition to mine production, 132,000 tons were processed from stockpiles during the quarter. As with Oil Pond, we don't anticipate processing meaningful amounts of stockpiles from Panama going forward as the strip ratio comes down and we increase mill seed from the mine. Production costs in the second quarter totaled $12 million.

Pierre Rocque: There was considerable pre-stripping activity ongoing during Q2. We moved 2.7 million tons of waste versus 104,000 tons of mineralizations. Mill feed from the mine during Q2 was mainly from bench number 19 of the phase 1 open pit, with production from bench number 13 commencing late in the quarter. Mill feed from Pamour is expected to increase significantly in H2 of the year, with the strip ratio expected to average below 10 to 1 during Q4 of the year. In addition to mine production, 132,000 tons were processed from stockpiles during the quarter. As with Owl Creek, we don't anticipate processing meaningful amounts of stockpiles from Pamour going forward as the strip ratio comes down and we increase mill feed from the mine. Production cost in Q2 totaled $12 million.

Speaker #6: With production from bench number 13 commencing late in the quarter, mill feed from Panama is expected to increase significantly in the second half of the year.

Speaker #6: With the strip ratio expected to average below 10 to 1 during the final quarter of the year, in addition to mine production, 132,000 tons were processed from stockpiles during the quarter.

Speaker #6: As with Holopan, we don't anticipate processing meaningful amounts of stockpiles from Panama going forward. As the strip ratio comes down and we increase mill feed from the mine.

Speaker #6: Production costs in the second quarter totaled $12 million. Operating costs around sold averaged $2,051. Sustaining costs around sold averaged $2,194. All capital expenditures at Panama in Q2 were growth capital expenditures.

Pierre Roch: Operating costs around sold averaged $2,051, while all in sustained costs around sold averaged $2,194. All capital expenditures at Panama in Q2 were growth capital expenditures and related mainly to pre-stripping and allocated TMA capital expenditures. I'll now turn the call over to Eric, our SVP for exploration.

Pierre Rocque: Operating cost around sold averaged $2,051, while All-in sustaining costs around sold averaged $2,194. All capital expenditures at Pamour in Q2 were growth capital expenditures and related mainly to pre-stripping and allocated G&A capital expenditures. I'll now turn the call over to Eric, our SVP Exploration.

Speaker #6: While all in

Speaker #6: And related mainly to pre-stripping and allocated TMA capital expenditures. I'll now turn the call over to Eric, our SVP Exploration.

Speaker #7: Thank you, Pierre. And good

Eric Kallio: Thank you, Pierre. Good afternoon, everyone. I'm on slide 21, and it's great to be here and talk about exploration again, as I believe we have a lot of very exciting things happening. Indicated on the slide, our current plan indicates work on several different projects and about 140,000 meters of drilling. One of the key projects is at the Hoyle Pond underground, where we'll be aiming for about 50,000 meters on three main targets, including 6 Shaft Deep, TDZ, and mid-mine targets. Just to share a few details, work on the SVM will be from platforms on the 1860 level and focus on infill expansion of the main zone, mostly near the 2000 level. Work on the TDZ will be from the 1210 level and include both infill and net testing and preparation for the new maiden resource in 2026.

Eric Callio: Thank you, Pierre. And good afternoon, everyone. I'm on slide 21, and it's great to be here and talk about exploration again, as I believe we have a lot, we have a lot of very exciting things happening. As indicated on the slide, our current plan indicates work on several different projects and about 140,000 meters of drilling. One of the key projects is at the Oil Pond underground, where we'll be aiming for about 50,000 meters on three main targets, including six main deep, TDZ, and then mid mine targets. Just to share a few details, work on the est zone will be from platforms on the 1860 level and focus on infill expansion of the main zone, mostly near the 2000 level. Work on the TDZ will be from the 1210 level and the crucible infill and net testing in preparation for the new main resource in 2026.

Speaker #7: Afternoon, everyone. I'm on slide 21, and it's great to be here and talk about exploration again. As I believe we have a lot of very exciting things happening.

Speaker #7: As indicated on the slide, our current plan outlines work on several different projects and about 140,000 meters of drilling. One of the key projects is at the Holopan underground, where we'll be aiming for about 50,000 meters on three main targets.

Speaker #7: Including 16 deep TBZ targets and then mid-mine targets. Just to share a few details, work on the SA will be from platforms on the 1860 level and will focus on infill expansion of the main zone, mostly near the 2000 level.

Speaker #7: Work on the TBZ will be from the 1,210 level and include both infill and neck testing in preparation for the new main resource in 2026.

Speaker #7: The work on the mid-mine targets will mainly be between the 1,200 and 1,700 levels, testing for new discoveries. This often includes an extension of many of the historic slopes that have been mined.

Eric Callio: The work on the mid mine targets will mainly be between 12 and 1700 level, testing for new discoveries, often an extension of many of the historic slopes that have been mined. In terms of progress, it's a little slower than expected, but we now have two drills in motion and adding four more this month, which should start to rapidly increase the rate of drilling. Now, let's end at Borden, ranging from about 20,000 meters. The main target here being the 585 deep zone two, which is basically the northeast extension of the NMR body. Work for the program here will be with three drills parked on the 585 level and drilling downwards into the zone over a 200 to 300 meter strike planes. And this is already well underway.

Eric Kallio: The work on the mid-mine targets will mainly be between 12 and 1,700 levels, testing for new discoveries, often in extensions of many of the historic slopes that have been mined. In terms of progress, it's a little slower than expected, but we now have 2 drills in motion and adding 4 more this month, which should start to rapidly increase the rate of drilling. Now, like in Borden, we're aiming for about 20,000m, with the main target here being the 585 deep zone 2, which is basically the northeast extension of the main ore body. Work for the program here will be with 3 drills parked on the 585 level and drilling downwards into the zone over a 2 to 300m strike length. This is already well underway.

Speaker #7: In terms of progress, it's a little slower than expected, but we now have two drills in motion and are adding four more this month, which should start to rapidly increase the rate of drilling.

Speaker #7: Now, let them at Borden. We're aiming for about 20,000 meters, with the main target here being the 585 deep zone, which is basically the northeast extension of the main ore body.

Speaker #7: Work for the program here will be with three drills, parked on the 585 level and drilling downwards into the zone over a 200 to 300 meter strike length.

Speaker #7: And this is already well underway. Turning to Panama, we have another 40,000 meters of drilling, which will be for infill and expansion of what we believe is already a pretty good open-pit resource.

Eric Callio: From the Panama, we have another 40,000 meters of drilling, which will be for infill and expansion, and we believe is already a pretty good open pit resource. In terms of the plan, what we see happening is drilling along most of the strike length of the planned pit and then beyond due to mining activity starting out right now on the east and west extremity. Progress to date here has actually been very good. There's over 12,000 meters completed to date, which is actually slightly ahead of plan. We plan to cap and roll off here of projects for both regional and dome, where we're aiming for a further 32,000 meters with 15,000 at Timmins, 10,000 at Borden, and about 7,500 at Dome.

Eric Kallio: Turning to Pamour, we have another 40,000 meters of drilling, which will be for infill and expansion, and what we believe is already a pretty good open-pit resource. In terms of the plan, what we see happening is drilling along most of the strike length of planned pit and then beyond, due to mining activity starting out right now on the east and west extremities. Progress to date here has actually been very good. It was over 12,000 meters completed to date, which is actually slightly ahead of plan. Finally, capping it all off here are projects for both regional and Domes, where we're aiming for a further 32,000 meters with 15,000 at Porcupine, 10,000 at Borden, and about 7,500 at Domes.

Speaker #7: In terms of the plan, what we see happening is drilling along most of the strike length of the planned pit and then beyond. But due to mining activity starting out right now on the east and west extremities.

Speaker #7: Progress to date has actually been very good. Over 12,000 meters have been completed to date, which is actually slightly ahead of plan. Finally, capping it all off here, are our projects for both regional and dome.

Speaker #7: Where we're aiming for a further 32,000 meters and 15,000 at Timmins and 10,000 at Borden. And about 7,500 at dome. In terms of the plan for all projects, there were pretty much all be focused pretty close to the mine.

Eric Kallio: In terms of the plan for all projects, they will pretty much all be focused pretty close to the mines, with work in Porcupine, testing areas west of Hoyle Pond and near Owl Creek, work at Borden testing north and east of the mines, and work at the dome near the main pit, and more specifically in the area of a possible starter pit, which we believe could provide a shorter-term opportunity with minimal impact to items such as the mill. In terms of progress, work on all these projects is just getting underway, but ramping up very rapidly this quarter. In summary, I believe we have a great lineup of projects and look forward to providing another update on these in the near future. With that, I'll pass the call over to José Jabalera, our VP, Corporate Affairs and Sustainability for Mexico.

Eric Callio: In terms of the plan for all projects, it will pretty much all be focused pretty close to the mine, with work in Timmins testing areas west of Oil Pond and near El Creek, work at Borden testing north and east of the mine, and work at the Dome near the main pit, and more specifically in the area of a possible starter pit, which we believe could provide a shorter-term opportunity with minimal impact to items that should be milled. In terms of progress, work on all these projects is just getting underway, but ramping up very rapidly this quarter. So in summary, I believe we have a great lineup of projects and look forward to providing another update on these in the near future. And with that, I'll pass the call over to Jose Javalera, our VP of Corporate Affairs and Sustainability for Mexico.

Speaker #7: With work in Timmins, testing areas west of Holopan and near Owl Creek. Work at Borden, testing north and east of the mine. And work at the dome near the main pit.

Speaker #7: And more specifically in the area of a possible starter pit, which we believe could provide a shorter-term opportunity with minimal impact to items such as the mill.

Speaker #7: In terms of progress, work on all these projects is just getting underway but ramping up very rapidly this quarter. So, in summary, I believe we have a great lineup of projects and look forward to providing another update on these in the near future.

Speaker #7: And with that, I'll pass the call over to Jose Jabalera, our VP of Corporate Affairs and Sustainability for Mexico.

Speaker #8: Thanks, Eric. Hi, everyone. So in Cordero, Mexico, we deliver our stability study at the beginning of 2024. Currently, our main permit is the MIA in Mexico.

José Jabalera: Thanks, Eric. Hi everyone. In Cordero, in Mexico, we deliver our feasibility study at the beginning of 2024. Currently, our main permit with the MIA in Mexico, it's being evaluated by the Ministry of Environment, and we hope to have a positive response in the coming months. Also during Q2, we continue derisking the project by evaluating energy options such as gas generation since we have a gas pipeline very close to the project versus power from the grid. Also, the technical work and some measurements to contribute to the progress of the rehabilitation of the water treatment plant, it's going now. An important point in line with derisking the project, last week we were present at meetings in the visit of the Minister of Finance and Foreign Affairs of Canada in Mexico.

Mark Utting: Thanks, Eric. Hi, everyone. So in Cordero in Mexico, we deliver our stability study at the beginning of 2024. And currently, our main permit with the MEA in Mexico is being evaluated by the Ministry of Environment, and we hope to have a positive response in the coming months. So also during Q2, we continue the risking the project by evaluating energy options, such as gas generation, since we have a gas pipeline very close to the project versus power from the grid. Also, the technical work and some measurements to contribute to the progress of the rehabilitation of the plan, the plan of the rehabilitation of the water treatment plant are going now. An important point in line with the risking the project, last week we were present at meetings in the visit of the Minister of Finance and Foreign Affairs of Canada in Mexico.

Speaker #8: It's being evaluated by the Minister of Environment, and we hope to have a positive response in the coming months. During Q2, we continue to assess the project by evaluating energy options such as gas generation, since we have a gas pipeline very close to the project, versus power from the grid.

Speaker #8: Also, the technical work and some measurements contribute to the progress of the rehabilitation of the plant. The plan for the rehabilitation of the water cooling plant.

Speaker #8: It's our going now. An important point in line with the risks of the project last week, we were present at meetings during the visit of the Minister of Finance and Foreign Affairs of Canada in Mexico.

Speaker #8: It was an official visit to President Sheinbaum. Advancing the visit of Prime Minister Carnegie will be during the next months in Mexico.

Mark Utting: It was an official visit to President Chamberlain, advancing the visit of the Prime Minister currently that will be during the next month in Mexico. And we know that in the next visit, the topic of one of the main topics will be mining authorizations in the agenda for Mexico. So thanks a lot for the opportunity and the opportunity I've received.

José Jabalera: It was a visit, official visit to Claudia Sheinbaum advancing the visit of the Prime Minister Carney that will be during the next months in Mexico. We know that in the next visit, the topic of one of the main topics will be mining authorizations in the agenda for Mexico. Thanks and I'll pass the call to Tony Makuch. I'll see you.

Speaker #8: And we know that in the next visit, one of the main topics on the agenda for Mexico will be mining authorizations.

Speaker #8: So, thanks. I pass the call to Tony McCooch, our CEO.

Speaker #7: Yeah, thanks, Jose. Thanks, everyone, for all the insights you provided in the call. I appreciate that. As you can see, everybody, we are off to a very strong start with the Porcupine operations.

Tony Makuch: Yeah, thanks, José. Thanks, everyone, for all the insights you provided on the call. Appreciate that. As you can see, everybody, we are off to a very strong start with the focus line operations. There is a lot of work to do, partly because there's so much opportunity, and we're excited about working forward as we unlock that and get that information out to our shareholders. We do expect to see higher levels of production in both Q3 and Q4. We'll also continue ramping up our investment in exploration programs and in CapEx with a target increase in H2 2025. We also are accelerating our exploration and initial exploration results should be coming during H2 of the year.

Tony McCooch: Okay. Thanks, Jose. Thanks, everyone, for all the insights you provided on the call. I appreciate that. As you can see, everybody here off gave a very strong start with the Porcupine operations. You know, there is a lot of work to do, partly because there's so much opportunity. And you know, and we're excited about working forward to unlock that and get that information out to our shareholders. We do expect to see higher levels of production in both Q3 and Q4. We also continue ramping up our investment in in exploration programs and in CAPEX with a target increase in the second half of 2025. We're also accelerating our exploration and initial exploration results during the week that should be coming during the second half of the year.

Speaker #7: You know, there is a lot of work to do, partly because there's so much opportunity, and we're excited about working forward as they unlock that and get that information out to our shareholders.

Speaker #7: We do expect to see higher levels of production in both Q3 and Q4. We're also continuing to ramp up our investment in exploration programs and in CapEx, targeting an increase in the second half of 2025.

Speaker #7: We're also accelerating our exploration and initial exploration results should be coming during the second half of the year. Where, you know, another big thing as part of trying to work out deliverables as we talked about coming into the end of this year early into next year is events work on a number of studies.

Tony McCooch: For you, you know, another big thing as part of trying to work on deliverables, as we talked about coming into the end of this year, early into next year, is a bunch of work on a number of studies. And you know, as I talked about earlier, establishing reserves that are operating mines at Oil Pond, Borden, and Panama, and to demonstrate the tremendous potential that exists out of growth projects at both in TDZ zone and at Dome. But before I conclude, you know, I always want to, I always remind you of a quote I heard from Indira Gandhi, where she said that she talked to her grandfather, where he said, "There's two kinds of people in the world. There are those that do the work and there are those that benefit from the work of others," she said.

Tony Makuch: Another big thing as part of trying to work out deliverables, as we talked about coming into the end of this year, early into next year, is eventually working on a number of studies. As I talked about earlier, establishing reserves at our operating mines, the Owl Creek, Borden, and Pamour, and to demonstrate the tremendous potential that exists at our growth projects at both the TDZ zone and at Dome. Before I conclude, I was reminded of a quote I hear from Indira Gandhi, where she said that she talked to her grandfather where he said, There's 2 kinds of people in the world. There are those that do the work, and there's those that credit from the work of others, she said. Her grandfather told her, Be part of the first group.

Speaker #7: And you know, as I talked about earlier, establishing reserves at our operating mines at Holopan, Borden, and Panama. This demonstrates the tremendous potential that exists at a growth project over the TBZ zone and at Dome.

Speaker #7: But before I conclude, you know, I always want to, I always do a reminder of a quote I heard from Indira Gandhi. She said that she talked to her grandfather, where he mentioned there are two kinds of people in the world.

Speaker #7: "There are those that do the work, and there are those that credit from the work of others," she said. Her grandfather told her, "Be part of the first group."

Tony McCooch: Her grandfather told her, "Be part of the first group. There's less competition." Unfortunately, or you know, I know as we speak, I know as I'm speaking it today, I'm part of the second group. So you know, with that, you know, I think it's important that I say that thanks to all the people at Discovery, those who supported us, the Gavi here, and to our shareholders. But as I say, most importantly, I want to thank personally those that have done the work, got the results in the quarter for us. Some of you are on shift working now. Others are at home resting before coming back for the next shift. Thank you for your efforts, and please continue to work safe. So with that, we'll just conclude the call, and we'll be happy to take any questions.

Speaker #7: There's less competition there. Unfortunately, or you know, I know as we speak, I know as I'm tweaking it today, I'm part of the second group.

Tony Makuch: There's less competition there." Unfortunately, or I know as we speak, I know as I'm speaking to you today, I'm part of the second group. With that, I think it's important that I say thanks to all the people of Discovery, those who supported us, to Gabe here, and to our shareholders. As I say, most importantly, I want to thank personally those that have done the work, got the results in the quarter for us. Some of you are on shift working now. Others are at home resting before coming back for the next shift. Thank you for your efforts, and please continue to work safe. With that, we'll just conclude the call, and we'll be happy to take any questions.

Speaker #7: So, you know, we've got to, you know, I think it's important that I say thanks to all the people at Discovery, those who supported us to get here, and to our shareholders.

Speaker #7: But, as I say, most importantly, I want to thank personally those that have done the work and achieved the results in the quarter for us.

Speaker #7: Some of you are on shift working now. Others are at home resting before coming back for the next shift. Thank you for your efforts, and please continue to work safe.

Speaker #7: So with that, we'll just conclude the call, and we'll be happy to take any questions.

Speaker #1: At this time, I would like to remind everyone that in order to ask a question, press star, then the number one on your telephone keypad.

Rob: At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question today comes from the line of Larry Liu from CIBC. Your line is open.

Operator 3: At this time, I would like to remind everyone, in order to ask a question, press star, then 1 on your telephone keypad. Your first question today comes from the line of Larry Liu from CIBC. Your line is open.

Speaker #1: Your first question today comes from the line of Larry Lu from CIBC. Your line is open.

Speaker #8: Hi, hi Tony, Alison, Pierre, Eric, Jose, and Mark, and team. Thanks for taking my question today. I guess I'll kick off my first question by asking, from your perspective, how are the assets performing compared to your initial expectations within a technical report?

Larry Liu: Hi, Tony, Alison, Pierre, Eric, José, and Mark and team. Thanks for taking my question today. I guess I'll kick off my first question asking about how, from your perspective, how are the assets performing compared to initial expectations within a technical report? If we look at today's results, 50,000 ounces came in strong if you factor in the timing of the transaction as well as the 2-week mill shutdown. I'm wondering if we can factor in any further upside compared to initial technical report at this point.

Larry Liu: Hi, Tony, Allison, Pierre, Eric, Jose, and Mark and team. Thanks for taking my question today. I guess I'll kick off my first question asking about how the ass, from your perspective, how are the assets performing compared to your initial expectations within a technical report? If we look at today's results, 50,000 ounces came in strong, if you factor in the timing of the transaction, as well as the two-week mill shutdown. I'm wondering if we can factor in any further upside compared to the initial technical report at this point.

Speaker #8: If you look at today's results, 50,000 ounces came in strong. If you factor in the timing of the transaction, as well as the two-week mill shutdown, I'm wondering if we can factor in any further upside compared to the initial technical report at this point.

Speaker #8: Maybe I'll let Pierre give a little bit of color here, but I mean, let me just put it in perspective for anyone. Yeah, definitely we took over the assets and we did our review.

Tony McCooch: Maybe I'll let Pierre give a little bit of color here, but I mean, let me just put it in perspective for anyone. Yeah, definitely, when we took over the assets and we did our review, and you got a sense on what could be accomplished here. But we also recognize we did inherit over 1,000 very talented, skilled, and motivated people working here. So we got a lot of upside in terms of intellectual property and opportunity that was given to us. But you know, there's challenges, but I think there's been some unique, some significant effort done in the quarter and getting some positive impacts. I don't know, Pierre, do you have any thoughts there?

Tony Makuch: Maybe I'll let Pierre give a little bit of color here, but I mean, let me just put it in perspective. Yeah, definitely, we took over the assets, and we did a review, and you got a sense of what can be accomplished here. We also recognize we did inherit over 1,000 very talented, skilled, and motivated people working here. We got a lot of upside in terms of intellectual property and opportunity that was given to us. There's challenges, but I think there's been some significant effort done in the quarter and getting some positive impacts. I don't know, Pierre, do you have any thoughts there?

Speaker #8: And you got a sense of what could be accomplished here, but we also recognize we did inherit over a thousand very talented, skilled, and motivated people working here.

Speaker #8: So you know, we got a lot of upside in terms of intellectual property and opportunity that was given to us. But you know, there are challenges. However, I think there's been some significant effort made in the quarter that is yielding positive impacts.

Speaker #8: I don't know, Pierre. Do you have any thoughts there?

Speaker #6: Right. In terms of the assets, as Tony mentioned, we're really blessed with the operating crews here. Whether it's at the mill or the mine, they are really top-notch.

Pierre Rocque: Right. In terms of the assets, as Tony mentioned, we're really blessed with the operating crews here, whether it's at the mill or the mine, that are really top-notch. Thank you for that. When you look at the assets themselves, starting with Pamour, referring to the PEA, we were at about 3,000 tons per day or 2025. Well, I can see we have exceeded that, and we're way ahead of that. When you look at Hoyle Pond, we were averaging around 500 tons per day. Well, we are ahead of that as well. Right now, I would say the only asset that needs a little bit more attention right now is at Borden, where we were planning to get 2,000 tons per day.

Pierre Roch: Right. In terms of the assets, as Tony mentioned, we're really blessed with the operating crews here. Whether it's at the mill or the mine, they're really top-notch. Thank you for that. And when you look at the assets themselves, starting with Panama, referring to the PEA, we were at about 3,000 tons per day for 2025. Well, I can say we have exceeded that, and we're way ahead of that. When you look at Oil Pond, we were averaging around 500 tons per day. Well, we are ahead of that as well. Right now, I would say the only asset that needs a little bit more attention right now is at Borden, where we were planning to get 2,000 tons per day.

Speaker #6: Thank you for that. When you look at the assets themselves, starting with Panama and referring to the PEA, we were at about 3,000 tons per day.

Speaker #6: Or for 2025, well, I can see we have exceeded that. And where are we ahead of that? When you look at Holopan, we were averaging around 500 tons per day.

Speaker #6: Well, we are ahead of that as well. Right now, I would see the only asset that needs a little bit more attention right now is at Borden.

Speaker #6: We were planning to get 2,000 tons per day. We'll be short of that in the quarter, but we think that with a little bit of changes in the mining plan, and more importantly, changes in the equipment, we'll be able to achieve and exceed the 2,000 tons per day.

Pierre Roch: We're a little short of that in the quarter, but we think that with a little bit of changes in the mining plan and more importantly, changes in the equipment, we'll be able to achieve and exceed the 2,000 tons per day. As I alluded a little bit earlier, truck availability, loaders availability during the quarter was really below expectations. That's only due to the age of the equipment. So as we replace the equipment, it's going to improve for sure.

Pierre Rocque: We're short of that in the quarter, but we think that with a little bit of changes in the mining plan and, more importantly, changes in the equipment, we'll be able to achieve and exceed the 2,000 tons per day. As I alluded a little bit earlier, truck availability, loaders availability during the quarter was really below expectations. That's only due to the age of the equipment. As we replace the equipment, it's going to improve for sure.

Speaker #6: As I alluded to a little bit earlier, truck availability and loader availability during the quarter were really below expectations. This was only due to the age of the equipment.

Speaker #6: So, as we replace the equipment, it's going to improve for sure.

Speaker #8: Yeah, for sure. Thanks, Pierre and Tony. I guess that kind of leads well onto my next question. Speaking of ahead of schedule, I'm just wondering if you can share with us where you are in terms of your ramp-up process at Panama and then how much more CapEx do you still need to do you still need to spend to push the asset towards commercial production or how much more do you intend to spend by before the end of the year?

Larry Liu: Yeah, for sure. Thanks, Pierre and Tony. I guess that kind of leads well into my next question. Speaking of ahead of schedule, I'm just wondering if you can share with us where you are in terms of your ramp-up process at Pamour and then how much more CAPEX do you still need to spend to push the asset towards commercial production, or how much more do you intend to spend before the end of the year?

Larry Liu: Yeah, for sure. Thanks, Pierre and Tony. I guess that kind of leads well into my next question. Speaking of ahead of schedule, I'm just wondering if you can share with us where you are in terms of your ramp-up process at Panama and then how much more CAPEX do you still need to spend to push the asset towards commercial production, or how much more do you intend to spend by before the end of the year?

Speaker #6: Yeah, you're okay with that, Pierre? Is that a threat? So, there is still a lot of pre-stripping. If you look at the remainder of the year, we're tracking with the PEA, so that will be the main expense, I would say.

Tony McCooch: Yeah, you'll get it at the end.

Pierre Rocque: You're okay with that, Pierre? Is it a trust? There is still a lot of free stripping. If you look at the remainder of the year, we're tracking with the PEA. That will be the main expense, I would say, the pre-stripping, and after that, the allocated portion of the tailings, and after that, some equipment replacement that we're doing there. It's still a challenging second half of the year financially, but we think that it's going to be compensated by an improvement in throughput.

Larry Liu: Is that a threat?

Pierre Roch: So there is still a lot of pre-stripping. Like if you look at the remainder of the year, what we're tracking with the PEA, so that will be the main expense, I would say, the pre-stripping. And after that, the allocated portion of the tailings. And after that, some equipment replacement that we're doing there. So it's still a challenging second half of the year financially, but we think that it's going to be compensated by improvement in throughput.

Speaker #6: The pre-stripping, and after that, the allocated portion of the tailings, and after that, some equipment replacement that we're doing there. So, it's still a challenging second half of the year financially.

Speaker #6: But we think that it’s going to be compensated by an improvement in throughput.

Speaker #8: Remember, though, we expect to continue advancing Panama this year. We don't expect a cheap commercial production until sometime by or before Q4 2026.

Tony Makuch: Remember, though, I mean, we expect to continue advancing Pamour this year. We don't expect to achieve commercial production to sometime by or before Q4 in 2026. Still a lot of work to do, right?

Tony McCooch: Remember, though, I mean, we expect to continue advancing Panama this year. We don't expect to achieve commercial production till sometime by by by by or before Q4 in 2026. Still a lot of work to do.

Speaker #8: Still a lot of work to do, right? For sure. Sounds good. It's good to see more progress there, for sure. And good to hear that things are ahead of schedule.

Larry Liu: For sure. Sounds good. It's good to see more progress there for sure, and good to hear that things are ahead of schedule. I guess my last question is more numbers-driven, might be more accounting, actually. So for reclamation liabilities, I noticed that there is a slight change in the discount rate used for the estimate. That's why resulting in an increase in the reclamation liabilities. I'm wondering, what's the reason driving that change, and should we expect such a magnitude of changes going forward?

Larry Liu: For sure. Sounds good. It's good to see more progress there for sure and good to hear that things are ahead of schedule. I guess my last question is more numbers-driven, might be more accounting, actually. For reclamation liabilities, I noticed that there is a slight change in discount rate used for the estimate. That's why resulting in an increase in the reclamation liabilities. I'm wondering, what's the reason driving that change, and should we expect such magnitude of changes going forward?

Speaker #8: I guess my last question is more numbers-driven. It might be more accounting-related. So, for reclamation liabilities, I noticed that there is a slight change in the discount rate used for the estimate, which is why there is a resulting increase in the reclamation liabilities.

Speaker #8: I'm wondering what's the reason driving that change, and should we expect such a magnitude of changes going forward?

Speaker #2: So, Larry, this is Alison, and really the change in the reclamation liabilities is all related to the purchase price accounting that we have done during the quarter.

Alison White: Larry, this is Alison. Really, the change in the reclamation liabilities is all related to the purchase price accounting that we have done during the quarter. This is really a huge quarter of transition for us on the accounting and finance front. We're getting our arms wrapped around the systems, the people, the numbers. Part of what we have to do is take a look at what's come over from Newmont as well as what's the reassessment of the fair market value of those reclamation liabilities. The increase that you see and the change in the discount rates that you see are all related to those purchase price activities. We do have a year to finalize those. If we have new facts that we need to consider going forward, we will. However, we don't anticipate a change in the discount rate.

Allison White: So, Larry, this is Allison. And really, the change in the reclamation liability is all related to the purchase price accounting that we have done during the quarter. And you know, this is really a huge quarter of transition for us on the accounting and finance front. We're getting our arms wrapped around the systems, the people, the numbers. And so part of what we have to do is take a look at, you know, what's come over from Newmont, as well as what's the reassessment of the fair market value of those reclamation liabilities. So the increase that you see and the change in the discount rates that you see are all related to those purchase price activities. And we do have a year to finalize those. So if we have new facts that we need to consider going forward, we will.

Speaker #2: And you know, this is really a huge quarter of transition for us on the accounting and finance front. We're getting our arms wrapped around the systems, the people, and the numbers.

Speaker #2: And so, part of what we have to do is take a look at, you know, what’s come over from Newmont, as well as what’s the reassessment of the fair market value of those reclamation liabilities.

Speaker #2: The increase that you see in the change in the discount rates is all related to those purchase price activities, and we do have a year to finalize those.

Speaker #2: So, if we have new facts that we need to consider going forward, we will. However, we don't anticipate a change in the discount rate to get back to your question.

Allison White: However, we don't anticipate a change in the discount rate to get back to your question.

Alison White: To get back to your question.

Speaker #8: Gotcha. Perfect. Sounds good. Thanks so much, Tony, Alison, and Pierre, for answering my question, and congrats again on a strong quarter.

Larry Liu: Gotcha. Perfect. Sounds good. Thanks so much, Tony, Alison, and Pierre for answering my question, and congrats again on a strong quarter.

Larry Liu: Gotcha. Perfect. Sounds good. Thanks so much, Tony, Allison, and Pierre for answering my question. And congrats again on a strong quarter.

Speaker #1: Your next question comes from a line of John Tomazos from John Tomazos Very Independent Research. Your line is open.

Rob: Your next question comes from a line of John Tomazos from John Tomazos Very Independent Research. Your line is open.

Operator 3: Your next question comes from the line of John Tumazos from John Tumazos Very Independent Research. Your line is open.

Speaker #9: Thank you, everyone, for your service to the company. Oh, John, could you explain the 75 percent plus quarter and 100 percent plus six-month tax rate?

John Tumazos: Thank you, everyone, for your service to the company. Alison, could you explain the 75%-plus quarter and 100%-plus six-month tax rate? Is it because the transaction expenses and the currency charges are not deductible for tax purposes? Would the tax rate be 35% going forward?

John Tomazos: Thank you, everyone, for your service to the company.

Rob: Thank you, John.

John Tomazos: Allison, could you explain the 75% plus quarter and 100% plus six-month tax rate? Is it because the transaction expenses and the currency charges are not deductible for tax purposes? And would the tax rate be 35% going forward?

Speaker #9: Is it because the transaction expenses in the currency charges are not deductible for tax purposes? And would the tax rate be 35 percent going forward?

Speaker #2: Yes. So, John, thank you for the question and for your very astute observations. I would say, first of all, that we are working through a little bit of a transition, as I mentioned in the answer that I gave to Larry, just about the process that we're going through from a finance and accounting lens.

Alison White: Yes. John Tumazos, thank you for the question and various observations, I would say, first of all. We are working through a little bit of transition, as I mentioned in the answer that I gave to Larry Liu just about the process that we're going through from a finance and accounting lens. You are correct. Our effective rate is hovering between 30% and 35% right now, and that's largely based on what's coming in at Dome. We are in the process of understanding what sort of tax planning initiatives we can put in place and how we might be able to bring those rates down going forward. We do need a little bit more time to work through that as an organization.

Allison White: Yes. So, John, thank you for the question and various observations, I would say, first of all. So we are working through a little bit of transition, as I mentioned in the answer that I gave to Larry, just about the process that we're going through from a finance and accounting lens. But you are correct. Our effective rate is hovering between 30 and 35 percent right now, and that's largely based on what's coming in at Dome. We are in the process of understanding what sort of tax planning initiatives we can put in place and how we might be able to bring those rates down going forward. But we do need a little bit more time to work through that as an organization.Thank

Speaker #2: But you are correct. Our effective rate is hovering between 30% and 35% right now, and that's largely based on what's coming in at dome.

Speaker #2: We are in the process of understanding what sort of tax planning initiatives we can put in place and how we might be able to bring those rates down going forward.

Speaker #2: But we do need a little bit more time to work through that as an organization.

Speaker #9: Thank you. Pierre, could you explain the thresholds for Panama being commercial? It's confusing to me that the cash cost is $2,000 and there's a $1,300 margin.

John Tumazos: Thank you. Pierre, could you explain the thresholds for Pamour being commercial? It's confusing to me that the cash cost is $2,000 and there's a $1,300 margin with $3,300 gold, yet it's not commercial. How does the engineering reconcile with the economics?

Rob: you. Pierre, could you explain the thresholds for Panmore being commercial? It's confusing to me that the cash cost is $2,000 and there's a $1,300 margin with $3,300 gold, yet it's not commercial. So how does the engineering reconcile with the economics?

Speaker #9: With $3,300 gold, yeah, it's not commercial. So how does the engineering reconcile with the economics?

Speaker #6: Right. So, in commercial production, there are no set rules for that. Internally, we are converging towards a 75 percent mining rate sustained for three months. We're not there yet.

Pierre Rocque: Right. Commercial production, there's no set rules for that. Internally, we are converging towards 75% mining rate sustained for 3 months. We're not there yet. As I alluded earlier, we're having dewatering requirements that far exceed our capability to increase the mining rate right now. Our efforts are really directed towards dewatering. To the best of our knowledge right now, we will not be in a position to improve drastically the mining rate until 2026, at which point we will meet that self-imposed rule, if you wish, of 75% production rate over sustained 3 months. You have to remember that when we started here in April, previous owner was a little bit behind the 8 ball with dewatering. Basically, they didn't do much. The new water treatment plant that they put in place, they forgot to winterize that.

Operator: Right. So commercial production, there's no set rules for that. internally, we we we are converging towards 75% mining rate sustained for three months. We're not there yet. And, as I alluded earlier, we're having dewatering requirements that far exceed our, capability to increase the mining rate right now. So our efforts are really directed towards dewatering. to the best of our knowledge right now, we will not be in a position to improve drastically the mining rate until 2026, at which point we will meet that self-imposed rule, if you wish, of 75% production, rate over, sustained three months. Yeah, you have to remember that when we, started here in April, the previous owner was a little bit behind the eight ball with dewatering. basically, they didn't do much. And then the new water treatment plant that they put in place, they forgot to winterize that.

Operator: And basically, we had to pick up the pieces in April and May. So that delayed a little bit our start for dewatering. But we're catching up a little bit, but it's a very, very long process. Does that clarify?

Pierre Rocque: Basically, we had to pick up the pieces in April and May. That delayed a little bit our start for dewatering. We're catching up a little bit, but it's a very long process. Does that clarify?

John Tumazos: Well, if the gold price is good, you're going to make a profit lower than 75%, but you still won't call it commercial.

Rob: So if the gold price is good, you're going to make a profit lower than 75%, but you still won't call it commercial.

Pierre Rocque: Like I said, there's no set rules for it. That's the one we decided to use.

Operator: Like I said, there's no set rules for it. That's the one we decided to use.

Tony Makuch: I think a big part there, John, is that in terms of strip ratio, in terms of what we're doing and the amount of work that really set it up for proper mine production is a lot of defining stuff that gets you set up for achieving your average throughput. Right now, it is somewhat intermittent, and it's not just on tons per day, but it's also on grade and being into the really being into the ore body and get all the benches proper. It's just a matter of time if we're going to get there, whether it's and again, it's that achieving 75% effective mining rate mill rate every day for 3 months, and then we can call it commercial production. It's arbitrary.

Tony McCooch: I think a big part there, John, is that, you know, in terms of strip ratio, in terms of what we're doing and the amount of work that really set it up for proper mine production, is is is is a lot of the defining stuff that gets you set up for for achieving your your average throughput. Right now, it's it is somewhat intermittent and and and not just on times per day, but it's also on grade and and being able to really be into the hill about and get all the benches proper. So it's just it's just a matter of time that we're going to get there, you know, whether it's, you know, and again, it's that achieving 75% effective mining rate, mill rate every day for for three months, and then we can call it commercial production. But it's arbitrary.

I think a big part there, John is that, you know, in terms of strip ratio in terms of what we're doing and and the amount of work that we reset it up for a proper line production is. This is is, is, is a lot of defining stuff that gets you set up for, for achieving your, your average throughput right now. It's it is somewhat intermittent. And, and, and it's not just on times per day, but it's also on grade and, and being is it. They don't really be into the orbit and get all the benches proper. So, it's, it's just a matter of time. We're going to get there, you know, whether it's, you know, and again, it's

Achieving 75% of my effective mining rate mill rate every day for 3 months, and then we can call it commercial production.

John Tumazos: Frankie might wonder to Eric. Eric, what is the distance from the edge of the Pamour pit to the edge of the idle Hollinger pit?

Rob: Yeah. We're not. So I think I just wanted to to Eric. Eric.

But it's arbitrary to Eric.

Tony McCooch: Yeah.

Rob: What is what is the distance from the edge of the Panmore pit to the edge of the idle Hollinger pit?

Eric. Yeah. What is what is the distance from the edge of the pin or pit?

To the edge of the idle, Hollinger Pit.

Eric Kallio: I don't know.

Tony McCooch: I don't know.

John Tumazos: Is it 2 kilometers, 5 kilometers?

Rob: Is it two kilometers, five kilometers?

I don't know. There's a $2.

Tony McCooch: It's more than two kilometers. you know, it takes me about half an hour to drive it, I guess. So it's going to be, yeah, maybe 20, over 20 kilometers outside.

Eric Kallio: It's more than 2km. It takes me about half an hour to drive, I guess. It would be yeah, maybe over 20km, I would say.

It's more than 2 kilometers. Uh, you know, it takes me about half an hour to drive, but I guess so, yeah, maybe over 20 kilometers, I would say.

John Tumazos: How much information is there? Should we assume that stretch of land is no geologic information, or are there areas where you know there's no gold, or what is the nature of the information?

Rob: How much information is there? Should we assume that that stretch of land is no geologic information, or are there areas where you know there's no gold, or what is the nature of the information?

How much information is there?

Should we assume that that stretch of land has no geologic information, or are there areas where, you know, there's no gold?

Ore.

What is the nature of the information?

Eric Kallio: Well, I mean, that stretch of land covers kind of quite a few different types of geology. I mean, there's a couple of major faults in there, the Burrows-Benedict Fault that offsets things quite a bit. There is some mining along the full stretch, but they're mostly small historic mines that didn't go down very deep and really didn't show the type of broad halos that you did see at the Pamour or the Dome either.

Tony McCooch: Well, I mean, that stretch of land, you know, covers, kind of quite a few different types of geology. I mean, there's a couple of major faults in there, the drilled cemented fault that offset things quite a bit. there is some mining along the whole stretch, but you know, they're mostly, you know, small historic mines that didn't go down very deep. And it really didn't show the type of raw tango that you did see at the Panmore or the Dome either.

Mark Utting: But you also the the Hollinger McIntyre on the on the sort of, I guess you would say, the the western limb of the porcupine sink line, and whereas Panmore is off on a lot of ways. The eastern limb of that eastern and far, far part of that. So you can't just go straight across, but you're going from from different from some mineralized or, or a highly prospective mineralized parts of the structure to an unmineralized structure in the core of the sink line.

Eric Kallio: Also the Hollinger-McIntyre on the sort of, I guess you would say, the western limb of the Porcupine syncline, whereas Pamour is off on part of the eastern limb of that eastern part of that. You can't just go straight across, right? You're going from different from mineralized or highly prospective mineralized parts of the structure to an unmineralized structure in the core of the syncline.

Tony McCooch: Yeah. The little part is quite different, I mean, than what you see either at Panmore or at Hollinger.

Eric Kallio: Yeah. The middle part is quite different, I mean, than what you see either at Pamour or at Hollinger.

John Tumazos: It's not just a simple geographic line. There's geology, as we talked about, and faults. It's figures who that change. It's a nice spot. There is a lot of potential mineralization. As I think Eric alluded to, it's an exciting camp now. Can you find new drilling. We find new extensions of existing mineralization. You can follow up on new targets that can grow in terms of size of resources and there's potential to find whole new discoveries in the camp. Tony, with the mill fixed up during the quarter and Pamour in startup and Borden at 2,000 a day and Hoyle at 600 tons a day, it looks like the mill is ahead of the mines at the moment. Is it worth having a contract miner go to the Dome pit and deliver 3,000, 4,000 tons a day while Pamour is starting up?

Mark Utting: So it's not just a simple geographic line. There's geology, as you talked about, and faults that you're doing that change. But it's a nice spot. But it is there is a lot of potential mineralization. And as I, you know, I think Eric will allude to this, it's an exciting camp. We're not only can you find new drilling, you find new extensions of existing mineralization. You can follow up on new targets that you that that that can grow in terms of size and resources. And there's potential to find whole new discoveries in the camp, so.

The Eastern limb of that eastern part of our part of that. So you can't just go straight across. But you're going from from different, from mineralized or, or highly perspective. Mineralized parts of the structure to, to analyze structure in the core. It's incline. Yeah, the middle part is like different. That means and what you see either at them or or as longer, so it's not just a simple, Geographic line is geology as you can talk about in fact,

Change.

But it's a nice thought, but it is, there is a lot of mineral potential mineralization. And as I, you know, I think Erica Lucy is, it's an exciting campaign. Can you find new? We're drilling. We find new extensions of existing, uh, mineralization. You can follow up on new targets that you that, that that can grow in terms of size and resources and this potential to find whole new discoveries in the campus. So,

Rob: Tony, with the mill fixed up during the quarter and Panmore in startup and boarding at 2,000 a day and oil at 600 ton a day, it looks like the mill is ahead of the mines at the moment. Is it worth having a contract miner go to the Dome pit and deliver 3,000, 4,000 ton a day while Panmore is starting up? And maybe you could drop a SAG mill into the into the Dome mill and get the party going a little better at the Dome pit.

Tony.

With the mill fixed up during the quarter.

and Pam, or

is startup.

and boarding at 20000 and

coil at 600 tons.

It looks like the mill is having issues at the moment.

Is it worth having a contract? Minor?

Go to the Dome pit.

And deliver 3,000 to 4,000 tons a day.

John Tumazos: maybe you could drop a SAG mill into the Dome mill and get the party going a little better at the Dome pit.

While Pam is starting up.

And maybe you could drop a SAG mill into the Dome mill.

And get the party going. A little better at the dump pit.

Tony Makuch: Well, I mean, there's a lot of these are I mean, that's part of what you can figure out. There's a right now, we're not mineralization or deposit limited in terms of what we can do. We need to do the technical work to advance with the Dome project, PVZ, as well as really solidify production from Hoyle Pond and Borden and get Pamour up. It's not just about managing production, etc., but it's also about managing costs and really setting yourselves up to be a we like to be a low-cost producer. I want to lower-cost producers and focus on responsible mining. There's a lot of things we need to do. We do have it as part of our goal, I think, as we talk in future quarters about what we're doing to the Dome mill to get it up.

Tony McCooch: I mean, there's a lot of a lot of these are, I mean, I mean, you know, that's part of what you're, you know, you can figure out. There's a, you know, right now, you know, we're not mineralization or deposit limited in terms of what we can do. We need to do the technical work to advance with the Dome project, DVZ, as well as, you know, really solidify production from Otter Pond and Vorden and get Panmore up. You know, it's about not just about managing production and etc., but it's also about managing costs and really setting yourself up to be a, you know, what we like to be a low-cost producer. I want to lower cost producers and, and, and, you know, and focus on responsible mining. There's a lot of a lot of things we need to do.

Tony McCooch: we are, we, you know, we do have it as part of our goal. I think, you know, as we talk in future quarters about what we're doing to the Dome mill to to get it up. But yeah, right now, the the the the mines can't keep up to the to the mill. There is low-grade stockpiles that I guess we could put in if we if if if they make sense to to keep the mill full. I think Gord's made a lot of very good progress. And we have demonstrated that the mill can run at, you know, 11,500, 12,000 tons a day and and get pretty good recoveries in well over 91, 92 percent. It's just a matter of time. And you know, we're working through that. We want to be able to do it consistently and responsibly.

Tony Makuch: Yeah, right now, the mines can't keep up to the mill. There is low-grade stockpiles that I guess we could put in if they make sense to keep the mill full. I think Gord's made a lot of very good progress, and we have demonstrated that the mill can run at 11,500, 12,000 tons a day and get pretty good recoveries and well over 91%, 92%. It's just a matter of time. We're working through that. We want to be able to do it consistently and responsibly. Similarly, with the mines, get them up consistently and responsibly to achieve that. The big picture is, and I would say in 2 years from now, we're going to be.

Oh, I mean, there's a lot of lot of these are, I mean, I mean, you know, that's part of what you're, you know, you, you can figure out there's a, you know, right now, uh, you know, we're not mineralization or deposit, uh, Limited in terms of of, of what we can do, we, we need to do the technical work to, to, to advance what the Dome project it is ADD, as well as you know, really solidify production from Auto Bond and Borton and and, and get Pam or up, you know. It's it's about not just about managing production and and and Etc. But it's also about managing costs and being setting the cells up to be a, you know what, we we like to be a low-cost producer. I I want a lower cost producers and and and and and you know and focus on responsible mining with a lot of lot of things we need to do. Um, we are we, you know, we do have it as part of our goal. I I think you you know, as we talked in the future quarters about what we're doing to the Dome melted to get it up but yeah. Right now the the the the the minds

Tony McCooch: And similarly, with the mines, get them up consistently and responsibly to achieve that. And the big picture is, you know, and I would say in two years from now, we're going to be.

Rob: Talk about the first hockey game.

John Tumazos: Got your first hockey game.

Can't keep up to the to the mill. There is low-grade stock piles that I guess we could put in if we if if if they make sense to to keep the milk full, I think gourds, you know, made a lot of very good progress and we have demonstrated that the milk and run at uh, you know, 1151 12,000, tons, a day and and get pretty good, recoveries and well over 91 92%, it's just a matter of time. And, you know, we're working through that we want to be able to do it consistently and responsibly and similarly, with the minds, get them up, consistently responsibly and keep that. And the big picture is, you know, and and I would say in 2 years from now, we're going to be talking again.

Tony Makuch: Yeah, yeah, sure. Even before we get our first hockey game there, John, in that sense, we got lots of significant upside between us and all these projects. As we say, there's ability to grow this into being a tier 1 asset in the gold space. As defined by some of our senior peers, they'll say a half a million ounce a year for 10-plus years at the lower half of the cost curve. That's part of our goal. We're not going to get there next year, but it's going to take 10 years to get there either.

Tony McCooch: Yeah. Yeah, sure. Well, we, we, but but even before we get our first hockey game there, John, and in that sense, we got we got lots of significant upside between between other all these projects. So there's, there's, you know, as we say, there's the ability to grow grow this into being a tier-one asset in the gold space. And you know, as defined by by by some of the some of our senior peers, they'll say half a million ounce a year at the for 10-plus years at at the lower half of the cost curve. And that's part of our goal. So we're not we're not going to get there next year, but I'm going to take 10 years to get there either.

Yeah yeah sure. Well we we but but we can be even before we get our first hockey game there. John and and and that sense we got we got lots of significant upside between City and others but all these projects so

There's there's you know, as we say there's ability to grow grow this into being a tier 1 asset and and the gold space. And you know, as defined by by by by some of the some of our senior peers, they'll say it half a million ounce a year at the for 10 plus years at at the lower half of the cost curve and that's part of our goal. So,

May I know we're not going to get there next year, but

going to take 10 years to get there either.

Operator 3: Again, if you'd like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Philip Kerr from Ventum Financial. Your line is open.

Allison White: Again, if you'd like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Phil Kerr from Ventum Financial. Your line is open.

Again, if you'd like to ask a question, please press star 1 on your telephone keypad. Your next question comes from the line of Phil Kerr from Ventum Financial. Your line is open.

Philip Kerr: Thanks, operator. Everyone at Discovery, congrats on the transformational quarter. Most of my questions have been touched on or taken care of by the presentation, but just a few simple ones here. Just in terms of G&A, the reported number there was relatively quite high compared to your peers. Just curious, I would assume there were some one-time items in there, and I'm wondering what this number may level off at for the rest of the year moving forward.

Pierre Roch: Thanks, operator. Everyone at Discovery, congrats on the transformational quarter. Most of my questions have been touched on or taken care of by the presentation, but just a few simple ones here. Just in terms of G&A, the reported number there was relatively quite high compared to your peers. And just curious, I would assume there were some one-time items in there, and I'm wondering what this number may level off at for the rest of the year moving forward.

Thanks operator. Uh, everyone at Discovery congrats on the uh, transformational quarter.

Uh, most of my questions have been, uh, touched on or, uh, taken care of by the presentation. But just a few simple ones here.

Uh, just in terms of G&A, the reported number was relatively quite high compared to your peers.

Uh, just curious, I would assume there were some one-time items in there, and I'm wondering what this number may level off at for the rest of the year moving forward.

Alison White: You're right. There were a lot of one-time G&A costs that were sitting in the quarter, and that is largely due to the acquisition and the costs associated with that. I think that we will not run at that same rate going forward. We don't have an exact number yet for you. By and large, the quarterly G&A that was attributable to the acquisition was close to CAD 20 million. There is certainly a lot of it that's sitting in there that will be coming or will repeat itself going forward.

Eric Callio: So you're right. There were a lot of one-time G&A costs that were sitting in the quarter, and that is largely due to the acquisition and the costs associated with that. I think that, you know, we will not run at that same rate going forward. We don't have an exact number yet for you. But by and large, the quarterly G&A that was attributable to the acquisition was close to $20 million. So there is certainly a lot of it that's sitting in there that will be coming or will repeat itself going forward.

Position and the cost associated with that. I think that, um, you know...

The we will not run at that same rate going forward. We don't have an exact number yet for you. Um, but by and large, the, the quarterly, uh, GNA that was attributable to the, uh, acquisition was close to 20 million dollars. So there is certainly a lot of it that's sitting in there. Um, that will be coming or well, repeat itself going forward.

Philip Kerr: Okay. Just in terms of exploration dollars, I think the breakdown of meters allocated about 25,000 meters to regional targets, would those targets be and those costs be expensed?

Pierre Roch: Okay. And just in terms of exploration dollars, I think the the breakdown of meters allocated about 25,000 meters to regional targets. Would those targets be and those those costs be expensed?

Okay.

Um, and in terms of exploration dollars, I think the, um, the breakdown of meters.

Uh, allocated about 25,000 meters of regional targets. Uh, will those targets and those expenses, those costs be expensed?

Tony Makuch: Yeah, they would be for the most part. Yes. Yes, up to pretty much all.

Tony McCooch: Yeah, they would be for the most part. Yes. Yeah, it's pretty much all.

Philip Kerr: What sort of drilling cost per meter are you seeing?

Pierre Roch: And what sort of drilling costs per meter are you seeing?

Yeah, they would be for the most part. Yes, yes, yes. Up to 3 months. Well,

And what sort of drilling costs per meter are you seeing?

Tony Makuch: Well, drilling costs per meter right now are still kind of I guess it's kind of hard for me to say what we're going to get going forward. I mean, they vary a lot from project to project. Pamour, we're probably doing very well because it's a pretty high rate of speed. Hoyle Pond, for example, we've been underground with only 1 drill for a while. You're going to have fairly high costs per meter there.

Tony McCooch: Well, drilling costs per meter right now, it's still kind of, I guess it's kind of hard to even say what we're going to get going forward. I mean, they vary a lot from project to project. Panmore profit generating all business is a pretty high rate of speed. And Dome or Ho-up Pond, for example, you know, we've been underground with only one drill for a while. So, you know, it's you're going to have fairly high costs per meter there.

Well.

Billing costs per meter right now are still kind of...

um,

Uh, it's kind of hard to say what we're going to get going forward, but I mean, they vary a lot from project to project. The property is doing very well, but it's at a pretty high rate of speed and don't or call upon, for example, you know, with an underground with only one drill for a while.

uh, so, you know, it's

You're going to have a fairly high cost per year. Yeah.

Philip Kerr: Okay.

Pierre Roch: Okay. And then.

Tony Makuch: It just varies a lot right now, but we'll be able to give you a better answer on that. I mean, they can vary between probably $150 and 300 a meter, I guess.

Tony McCooch: So it just varies a lot right now, but you know we'll be able to give you a better answer on that. But I mean, they can vary between probably $150 or $300 a meter, I guess.

okay, and then

Philip Kerr: Yeah. Okay. Just in terms of the Franco-Nevada royalty, I did see a line broken out in the production costs. As we added it up into the income statement, I sort of lost where that I think it was about CAD 6 and a half million where that was being reported or where it was lost in translation from operations to the financial statements.

Pierre Roch: Yeah. Okay. And then just in terms of the the Franco Nevada royalty, I did see a line broken out, in the production costs. but as we added it up into the income statement, I I sort of lost where that I think it was about $6.5 million, where that was being reported or or where it was lost in translations from operations to the financial statements.

It just varies a lot, but now we are able to give you a better answer on that. I mean, they can vary between probably $150 to $300 a year, I guess.

Yeah.

Okay, and then just in terms of the, uh, the Franco, Nevada royalty. I did see a line broken out, uh, in the, uh, production costs.

Um, but as we added it up into the uh, income statement, I I sort of lost where uh, that I think it was about 6 and a half million where that was being reported or or where it was lost in translation from operations to the financial statements.

Alison White: Yeah. That is a complex accounting arrangement that we have entered into in relation to the Franco-Nevada royalty. That's largely due to a number of terms that are present in the contract. There's two different tranches that are included in that royalty. It qualifies for embedded derivative treatment underneath our accounting rules. Effectively, the royalty gets recorded as deferred revenue, and then it amortizes over the life of mine. The deferred revenue ends up being reduced by the ounces produced, and then there's a royalty and an interest expense reported. Phil, we're happy to walk you through anything in terms of model offline, but hopefully, that high level just kind of helps you understand the general mechanics of how we're accounting for that royalty.

Eric Callio: Yeah. So that is a complex accounting arrangement that we have entered into in relation to the Franco Nevada royalty. And that's largely due to a number of terms that are present in the contract. There's two different tranches that are included in that royalty. And so it qualifies for embedded derivative treatment underneath our accounting rules. So effectively, the royalty gets recorded as deferred revenue, and then it amortizes over the life of mine. The deferred revenue ends up being reduced by the ounces produced, and then there's a royalty and an interest expense reported. So, so we're happy to walk you through anything in terms of model offline, but hopefully, that high level just kind of helps you understand the general mechanics of how we're accounting for that royalty.

It's yeah, so that um, is a complex accounting Arrangement that we have entered into um, in relation to the Frank kind of that a royalty and that's largely due to a number of terms that are present, um, in the contract, there's 2 different tranches that are included in that royalty. And so it, it qualifies for embedded derivative treatment, um, underneath our accounting roles. So effectively the royalty gets recorded as deferred revenue and then it advertises over the life of mine. The deferred revenue ends up being reduced by the Oz produced. And then there's a royalty and an interest expense reported

So, um, we're happy to walk you through anything in terms of model offline. But hopefully that high level just kind of helps you understand the general mechanics of how we're accounting for that royalty.

Philip Kerr: Complex accounting said it all. Thank you.

Pierre Roch: Complex accounting set it off. Thank you.

Complex accounting said it all. Thank you.

Alison White: I could have stopped earlier. Thank you.

Eric Callio: I could have stopped earlier. Thank you.

Philip Kerr: Yeah. Thanks for the questions.

Pierre Roch: Yeah. Thanks. Thanks for the questions.

I could have stopped earlier. Thank you. Yeah.

Thanks, thanks for the questions.

Operator 3: There are no further questions at this time. I will now turn the call back over to the presenters for some final closing remarks.

Allison White: And there are no further questions at this time. I will now turn the call back over to the presenters for some final closing remarks.

And there are no further questions at this time. I will now turn the call back over to the presenters for some final closing remarks.

Mark Utting: Yeah. I just want to thank everyone for taking the time to participate in the call. Just to repeat something Tony said, there's a lot of work going on, and there's a lot of work to do, and that's a function of there being a lot of opportunity here. Having calls like this give us an opportunity to talk about the progress we're achieving and sort of what we see going forward. We'll look forward to keeping you updated, and that includes our next quarterly call in November. Thanks very much again.

Mark Utting: Yeah. I just want to thank everyone for taking the time to participate in the call. Just to repeat something Tony said, there's a lot of work going on, and there's a lot of work to do, and that's a function of there being a lot of opportunity here. And having calls like this give us an opportunity to talk about the progress we're achieving and and sort of what we see going forward. And so we'll we'll look forward to keeping you updated, and that includes our next quarterly call in the numbers. Thanks very much again.

Uh, yeah, I just want to thank everyone, uh, for taking the time to participate in the call. Uh, just to repeat something Tony says, there's a lot of work going on and there's a lot of work to do, and that's a function of there being a lot of opportunity here, and I had involved like this.

Allison White: This concludes today's conference call. You may now disconnect.

Operator 3: This concludes today's conference call. You may now disconnect.

Give us an opportunity to, to talk about progress. We're achieving and, and so what we see going forward and so we'll, uh, we'll look forward to keeping you uh, updated and uh, that includes our next quarterly call in November. Thanks very much again.

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