Q3 2025 Amerigo Resources Ltd Earnings Call

Speaker #3: Good afternoon . My name is Natasha , and I will be your conference operator today at this time , I would like to welcome everyone to the Amerigo Resources Q3 2025 Earnings Call .

Operator: Good afternoon. My name is Natasha, and I will be your conference operator today. At this time, I would like to welcome everyone to the Amerigo Resources Ltd. Q3 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the formal remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, then the number one on your keypad. If you would like to withdraw your question, please press star followed by two. Thank you. Mr. Graham Farrell of Northstar Investor Relations, you may begin your conference.

Speaker #3: All lines have been placed on mute to prevent any background noise. After the formal remarks, there will be a question and answer session.

Speaker #3: If you would like to ask a question during this time , simply press star . Then the number one on your keypad . If you would like to withdraw your question , please press star followed by two .

Speaker #3: Thank you, Mr. Graham Farrell of North Star Investor Relations. You may begin your conference.

Speaker #4: Thank you . Operator . Good afternoon and welcome everyone to Amerigo's quarterly conference call to discuss the company's financial results for the third quarter of 2025 .

Graham Farrell: Thank you, Operator. Good afternoon, and welcome everyone to Amerigo Resources Ltd.'s quarterly conference call to discuss the company's financial results for the third quarter of 2025. We appreciate you joining us today. This call will cover Amerigo Resources Ltd.'s financial and operating results for the third quarter ended September 30, 2025. Following our prepared remarks, we will open the conference call to a question-and-answer session. Our call today will be led by Amerigo Resources Ltd.'s President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties.

Speaker #4: We appreciate you joining us today. This call will cover Amerigo's financial and operating results for the third quarter ended September 30, 2025.

Speaker #4: Following our prepared remarks , we will open the conference call to a question and answer session . Our call today will be led by Amerigo's President and Chief Executive Officer , Aurora Davidson , along with the company's chief Financial Officer , Carmen Amézquita .

Speaker #4: Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements.

Speaker #4: Forward looking statements may include , but are not necessarily limited to , financial projections or other statements of the company's plans , objectives , expectations or intentions .

Speaker #4: These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested by any forward-looking statements, due to a variety of factors which are discussed in detail in our Cedar filings.

Graham Farrell: The company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our CDOR filings. I will now hand the call over to Aurora Davidson. Please go ahead, Aurora.

Speaker #4: I will now hand the call over to Aurora Davidson. Please go ahead, Aurora.

Speaker #5: Thank you. Welcome to Amerigo's call for the third quarter of 2025. Q3 2025 was a quarter of strong execution and resilience for Amerigo and our NBC operation in Chile.

Aurora Davidson: Welcome to Amerigo Resources Ltd.'s earnings call for the third quarter of 2025. Q3 2025 was a quarter of strong execution and resilience for Amerigo Resources Ltd. and our Minera Valle Central operation in Chile. On July 31, El Teniente faced a tragic accident resulting in Minera Valle Central ceasing to receive fresh tailings for 10 days. Since the accident, Minera Valle Central has received lower throughput from fresh tailings than normal under the original annual budget. This condition led to a decline in monthly production in August, followed by a production recovery in September. The timely adjustments made by Minera Valle Central to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine-tuning of the concentrator plant. The lower August production forced us to adjust our copper production guidance from 62.9 million pounds to a range of 60 to 61.5 million pounds.

Speaker #5: On July , the 31st El Teniente faced a tragic accident resulting in NBC ceasing to receive fresh tailings for candies . Since the accident , NBC has received lower throughput from fresh tailings , normal under the original annual budget .

Speaker #5: This condition led to a decline in monthly production in August, followed by a production recovery in September. The timely adjustments made by M.D.C.

Speaker #5: to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine tuning of the concentrator plant . The lower August production forces to adjust our copper production guidance from £62.9 million to a range of 60 to £61.5 million .

Speaker #5: Our production results in October have been strong, and we remain confident in the revised guidance, despite the impact of El Teniente.

Aurora Davidson: Our production results in October have been strong, and we remain confident in the revised guidance. Despite the impact of El Teniente's accident, during the third quarter, Minera Valle Central maintained a high plant availability of 98% and continued to operate without lost-time accidents or environmental incidents. These metrics reflect the strength of our operational planning and the dedication of our on-the-ground team. Stable copper prices and strong molybdenum contributions supported total revenue of $52.5 million in the third quarter. The London Metal Exchange copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in Q3, peaking at a monthly average price of $4.51 per pound in September. I will provide my comments on the copper market later in the call. Net income for the quarter was $6.7 million, with earnings per share of $0.04.

Speaker #5: This accident during the third quarter , MDC maintained a high plant availability of 98% and continued to operate without lost time . Accidents or environmental incidents .

Speaker #5: These metrics reflect the strength of our operational planning and the dedication of our on the ground team . Stable copper prices and strong multi contributions supported total revenue of $52.5 million in the third quarter .

Speaker #5: The LME copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in Q3, peaking at a monthly average price of $4.51 per pound in September.

Speaker #5: I will provide my comments on the copper market later in the call. Net income for the quarter was $6.7 million, with earnings per share of $0.04.

Speaker #5: The company generated operating cash flow of 12.4 million , excluding changes in working capital and free cash flow to equity of 11.1 million , in line with the company's capital return strategy , or Ccr's , a quarterly dividend of $0.03 .

Aurora Davidson: The company generated operating cash flow of $12.4 million, excluding changes in working capital, and free cash flow to equity of $11.1 million. In line with the company's capital return strategy, or CRS, a quarterly dividend of CA$0.03 per share, or $3.5 million, was paid. Amerigo Resources Ltd.'s quarter-end position was $28 million. Molybdenum production was 350,000 pounds, and molybdenum prices averaged $24.11 per pound during the quarter. When looking at the cash cost metric, this resulted in a credit of $0.57 per pound, enabling Minera Valle Central to post a cash cost of $1.80 per pound, which was lower than the $1.82 per pound of the second quarter and the $2.22 per pound of the first quarter. Based on these strong cash cost results, we have maintained our original annual cash cost guidance of $1.93 per pound. This guidance excludes MVC's collective bargaining costs.

Speaker #5: Canadian per share , or 3.5 million , was paid . Americas quarter and position was 28 million . More . Production was £350,000 and prices averaged $24.11 per pound during the quarter .

Speaker #5: When looking at the cash cost metric , this resulted in a credit of $0.57 per pound , enabling NBC to post a cash cost of $1.80 per pound , which was lower than the one dollars $0.82 per pound of the second quarter , and the $2.22 per pound of the first quarter .

Speaker #5: Based on these strong cash cost results, we have maintained our original annual cash cost guidance of $1.93 per pound. This guidance excludes NBC's collective bargaining costs.

Speaker #5: Amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations. Carmen will walk you through the detailed financials shortly.

Aurora Davidson: Amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations. Carmen will walk you through the detailed financials shortly. I want to discuss three important events that occurred in October subsequent to the end of the third quarter. On October 27, MVC fully repaid its outstanding debt. At the end of September, this debt totaled $7.5 million. Eliminating outstanding debt was one of the objectives for this year and marked the conclusion of a transformational 10-year period for Amerigo. When the company took on $100 million in debt, it was part of a strategic decision to invest in Chile and MVC's growth. This decision laid the foundation for a long-term copper-producing operation that could navigate market cycles without diluting shareholder ownership. From the beginning, we were clear: debt should not be a permanent fixture.

Speaker #5: I want to discuss three important events that occurred in October . Subsequent to the end of the third quarter , on October the 27th , NBC fully repaid its outstanding debt .

Speaker #5: At the end of September, this debt totaled $7.5 million. Eliminating outstanding debt was one of the objectives for this year and marks the conclusion of a transformational ten-year period for Amerigo.

Speaker #5: When the company took on $100 million in debt, it was part of a strategic decision to invest in Chile and NBC's growth.

Speaker #5: This decision laid the foundation for a long term copper producing operation that could navigate market cycles without diluting shareholder ownership . But from the beginning , we were clear debt should not be a be a permanent fixture .

Speaker #5: It was a tool, and like any good tool, it had a purpose and a timeline. Every debt repayment was a step towards greater financial strength and flexibility.

Aurora Davidson: It was a tool, and like any good tool, it had a purpose and a timeline. Every debt repayment was a step towards greater financial strength and flexibility. Our final debt repayment affirmed the correctness of that strategic decision. It also reflects the company's resilience and commitment to shareholders. Also, on October 27, Amerigo's board of directors increased the quarterly dividend paid to shareholders to $0.04 Canadian per share. This is a 33% increase from the prior dividend and doubled the initial dividend under the current CRS. This dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt.

Speaker #5: Our final debt repayment affirmed the correctness of that strategic decision . It also reflects the company's resilience and commitment to shareholders . Also on October the 27th , Amerigo's Board of Directors increased the quarterly dividend pay to shareholders to $0.04 Canadian per share .

Speaker #5: This is a 33% increase from the prior dividend and double the initial dividend. Under the current CCRs, this dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt.

Speaker #5: It is an important signal of the board's vision for the future because , as we mentioned from day one of the CRS , the quarterly dividend is set at a rate that is sustainable in the foreseeable future , irrespective of short term copper price .

Aurora Davidson: It is an important signal of the board's vision for the future because, as we mentioned from day one at the CRS, the quarterly dividend is set at a rate that is sustainable in the foreseeable future, irrespective of short-term copper price fixed quality. This is a new floor for shareholders. As has been the case in the last four years, additional distributions will continue to be made through share buybacks and performance dividends. The final significant event I want to comment on occurred on October 22. On that day, MVC signed a three-year collective agreement with its main union, the Operators Union, which has 210 members. Collective agreements play a crucial role in Chile's mining industry. These agreements maintain labor peace and provide a structured framework for negotiating wages, working hours, benefits, and bonuses.

Speaker #5: Cyclicality. This is a new floor for shareholders, and as has been the case in the last four years, additional distributions will continue to be made through share buybacks and performance dividends.

Speaker #5: The final significant event I want to comment on occurred in October . The 22nd . On that day , NBC signed a three year collective agreement with its main union , the Operators Union , which has 210 members .

Speaker #5: Collective agreements play a crucial role in Chile's mining industry . These agreements maintain labor , peace and provide a structured framework for negotiating wages , working hours , benefits and bonuses .

Speaker #5: The agreements must balance the strength or weakness of copper prices at the time of negotiation , while ensuring access to a skilled workforce and the specific economics of the operation .

Aurora Davidson: The agreements must balance the strength or weakness of copper prices at the time of negotiation while ensuring access to a skilled workforce and the specific economics of the operation. We had a constructive negotiation with our workers and reached a fair agreement for both parties. Now, I will move on to our commentary on the copper market. The long-term themes of surging demand and supply constraints remain significant. A third important element that cannot be ignored is geopolitical interference in the marketplace. Let's start with the obvious: supply constraints and disruptions. A copper supply deficit between 300,000 and 500,000 tons is now forecast for this year. This has already pushed copper prices upwards, as evidenced by October's average LME price over $4.84 per pound.

Speaker #5: We had a constructive negotiation with our workers and reached a fair agreement for both parties . Now I will move on to our commentary on the copper market .

Speaker #5: The long term themes of surging demand and supply constraints remain significant . A third important element that cannot be ignored is geopolitical interference in the marketplace .

Speaker #5: Let's start with the obvious supply constraints and disruptions . A copper supply deficit between 300,000 and 500,000 tonnes is now forecast for this year .

Speaker #5: This has already pushed copper prices upwards, as evidenced by October's average LME price over $4.84 per pound. In addition to the trend of declining ore grades, specific mine disruptions at Grasberg and El Teniente have resulted in the loss of around 518,000 tonnes of copper this year.

Aurora Davidson: In addition to the trend of declining ore grades, specific mine disruptions at Grasberg, Camoacacula, and El Teniente have resulted in the loss of around 518,000 tons of copper this year. Looking beyond 2025, companies such as Antofagasta Minerals and Teck have already downgraded their 2026 copper guidance. Freeport and Ivanhoe Mines will likely do the same following physical inspections of their impacted mines. As I mentioned a minute ago, the current global copper supply has tightened, resulting in a deficit. This bottleneck is driven by copper concentrate availability, which has been affected by production shortfalls at the mines. At the same time, due to overinvestment, the world now has too many smelters to refine copper concentrates. This situation is reflected by the size and the movement of treatment and refining charges, or TCRCs. These are the fees that smelters charge miners to process copper concentrates into refined copper.

Speaker #5: Looking beyond 2025, companies such as Antofagasta Minerals and Teck have already downgraded their 2026 copper guidance. Report and Ivanhoe Mines will likely do the same.

Speaker #5: Following physical inspections of their impacted mines , as I mentioned a minute ago , the current global copper supply has tightened , resulting in a deficit .

Speaker #5: This bottleneck is driven by copper concentrate availability , which has been affected by production shortfalls at the mines . At the same time , due to over the world , now has too many smelters to refine copper concentrates .

Speaker #5: This situation is reflected by the size and the movement of treatment and refinery charges or TC , arcs . These are the fees that smelters charge miners to process copper concentrates into refined copper treatment charge , or TC , is the cost to process the concentrate at smelter refining charge or RC , is the cost to refine the metal from the concentrate .

Aurora Davidson: Treatment charge, or TC, is the cost to process the concentrate at the smelter. Refining charge, or RC, is the cost to refine the metal from the concentrate. TCRCs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate. When TCRCs are low, miners earn more, and when they're high, smelters take a larger share. Until 2025, TCRCs were negotiated annually between major copper miners and smelters. The agreed terms, known as a TCRC annual benchmark, govern long-term contracts. There is also a spot TCRC market for short-term or one-off deals, which reflects real-time market conditions and is volatile. Smelters are currently struggling to secure feedstock, which has pushed spot TCRCs into negative territory. Despite the negative spot TCRCs, smelters have been able to survive thanks to byproduct credits from other metals in the concentrates they process, such as gold or silver.

Speaker #5: TC arcs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate . When TC are low , miners earn more , and when they're high , smelters take a larger share until 2025 , tcrs were negotiated annually between major copper miners and smelters .

Speaker #5: The agreed terms , known as the Tcrc annual benchmark , governed long term contracts . There is also a spot tcrc market for short term or one of deals , which reflects real time market conditions and is volatile .

Speaker #5: Smelters are currently struggling to secure feedstock which has pushed spot tcrc into negative territory . Despite the negative spot , Tcrc smelters have been able to survive thanks to byproduct credits from other metals in the concentrates .

Speaker #5: They process , such as gold or silver . However , negative tcrc is clearly put significant financial pressure on smelters whose business models depend on virtually continuous operation .

Aurora Davidson: However, negative TCRCs clearly put significant financial pressure on smelters, whose business models depend on virtually continuous operation. In recognition of the financial stress imposed on smelters, Freeport, which is one of the traditional benchmark setters, has just abandoned the global TCRC benchmark model and has proposed a new floor cap contract model to protect the smelter margins. This model sets minimum and maximum TCRC levels, providing greater stability in volatile market conditions, such as the recent negative TCRC spot terms. In 2026, we may see a different landscape moving from the traditional stable benchmark-based system to floor cap models. However, we could also continue to see negative TCRCs, under which, instead of miners paying smelters, smelters will pay miners. We may also see multi-year contracts instead of annual or shorter-term contracts, and a shift from TCRCs being the primary revenue source for smelters to a reliance on byproducts.

Speaker #5: In recognition of the financial stress imposed on smelters , Freeport , which is one of the traditional benchmark setters , has just abandoned the global Tcrc benchmark model and has proposed a new floor cap contract model to protect the the smelter margins .

Speaker #5: This model sets minimum and maximum TCRC levels, providing greater stability in volatile market conditions such as the recent negative TCRC spot firms.

Speaker #5: So in 2026 , we may see a different landscape moving from the traditional stable benchmark based system to floor cap models . However , we could also continue to see negative tcrc under which , instead of miners paying smelters , smelters will pay miners .

Speaker #5: We may also see multiyear contracts instead of annual or shorter term contracts . And a shift from tcrc being the primary revenue source for smelters to a reliance on byproducts .

Speaker #5: In other words , one of the longest term features of the copper market is currently under review , and this is all because of long term stresses on copper supply , which we do not anticipate will change anytime soon .

Aurora Davidson: In other words, one of the longest-term features of the copper market is currently under review. This is all because of long-term stresses on copper supply, which we do not anticipate will change anytime soon. On the demand side, the global need for copper is expected to rise year on year, at least until 2035. Demand may be shifting regionally, but global total demand is not slowing. The main drivers of growth fall into two big buckets: electrification and digitalization. A few years ago, digitalization was not even discussed seriously in analysis of future copper demand. Tariffs, such as a 50% U.S. tariff on most finished and semi-finished copper products, are also affecting trade flows and regional inventory balances. Speculative trading continues, and we know it was very pronounced earlier this year, as shown by the differences between LME and COMEX copper prices.

Speaker #5: On the demand side , the global need for copper is expected to rise year on year , at least until 2035 . Demand may be shifting regionally , but global total demand is not slowing .

Speaker #5: The main drivers of growth fall into two big buckets: electrification and digitalization. A few years ago, digitalization was not even discussed seriously in the analysis of future copper demand.

Speaker #5: Tariffs, such as the 50% U.S. tariff on most finished and semi-finished copper products, are also affecting trade flows and regional inventory balances.

Speaker #5: Speculative trading continues, and we know it was very pronounced earlier this year, as shown by the differences between LME and COMEX copper prices.

Speaker #5: Geopolitical conflicts or the resolutions can also strengthen or weaken the US dollar , which affects copper prices . Governments are now actively investing in mining companies and in some cases , prioritizing certain projects .

Aurora Davidson: Geopolitical conflicts, or their resolutions, can also strengthen or weaken the U.S. dollar, which affects copper prices. Governments are now actively investing in mining companies and, in some cases, prioritizing certain projects. Political intervention, resource nationalism, and regulatory shifts will impact market behavior. All of these factors could lead to a copper market in 2026 that remains volatile but elevated. To end my macro comments, I will mention that Chile will now hold general elections shortly. The first round will be on November 16, followed by a run-off, which is usually the case, on December 14, 2025. The presidential inauguration will be on March 11, 2026. Current polls suggest that none of the candidates will get 50% or more of the votes on the first round, and that will lead the contenders to a run-off.

Speaker #5: Political intervention , resource nationalism and regulatory shifts will impact market behavior . All of these factors could lead to a copper market in 2026 that remains volatile , but elevated .

Speaker #5: To end my macro comments , I will mention that Chile will now will hold general elections shortly . The first round will be on November 16th , followed by a runoff , which is usually the case on December 14th , 2025 .

Speaker #5: The presidential inauguration will be on March 11th , 2026 . Current polls suggest that none of the candidates will get 50% or more of the votes on the first round , and that will lead the contenders to a runoff with Jeanette Jara of the center left coalition .

Aurora Davidson: With Janet Jara of the center-left coalition Unidad por Chile and José Antonio Kast of the Republican Party, who has a far-right stance, being the most likely candidates. In this run-off scenario, José Antonio Kast, a pro-business, pro-mining candidate, would likely win the election. I will conclude my remarks with a few comments about the continued success of our capital return strategy. Only a month ago, we reached the fourth anniversary of the CRS, which, as you know, comprises quarterly dividends, performance dividends, and share buybacks. Over the past four years, we have used the three components to return $93.7 million to shareholders. 60% of the return has come from dividends, paying a cumulative dividend of $0.51 Canadian per share, and 33% from buybacks, retiring 25.6 million shares, or 14% of the shares outstanding at the start of the CRS.

Speaker #5: Unidad for Chile and Jose Antonio Cast of the Republican Party , who has a far right stance being the most likely candidates in this runoff scenario .

Speaker #5: Jacinto cast a pro-business, pro-mining candidate, which would likely win the election. I will conclude my remarks with a few comments about the continued success of our capital return strategy.

Speaker #5: Only a month ago , we reached the fourth anniversary of the CRS , which , as you know , comprises quarterly dividends , performance , dividends , and share buybacks .

Speaker #5: Over the past four years, we have used the three components to return $93.7 million to shareholders. Sixty percent of the return has come from dividends, paying a cumulative dividend of $0.51.

Speaker #5: Per share and 33% from buybacks. Retiring 25.6 million shares, or 14% of the shares outstanding, at the start of the CRS.

Speaker #5: We recently published a video that illustrates the benefits of the CRS for shareholders . The video is on our website , and in it we noted that on a total return to shareholders basis , Amerigo has outperformed mid-tier copper producers , copper ETFs and copper futures since October of 2021 .

Aurora Davidson: We recently published a video that illustrates the benefits of the CRS for shareholders. The video is on our website, and in it, we noted that on a total return to shareholders' basis, Amerigo Resources Ltd. has outperformed mid-tier copper producers, copper ETFs, and copper futures since October of 2021. Total returns measure share appreciation and dividends, but they cannot capture the benefit of share buybacks, which ultimately benefits shareholders by reducing the number of shares in which dividends are paid. To better capture the effect of buybacks, we undertook another analysis. That analysis identified another powerful aspect of investing in Amerigo Resources Ltd. Buying Amerigo Resources Ltd. shares is a very cost-effective way to own copper. We have shown that over the last four years, it has been cheaper to buy a pound of copper by buying Amerigo Resources Ltd. shares than to buy it at the LME.

Speaker #5: Total returns measure share , appreciation and dividends , but they cannot capture the benefit of share buybacks , which ultimately benefits shareholders by reducing the number of shares in which dividends are paid to better capture the effect of buybacks , we undertook another analysis .

Speaker #5: That analysis identified another powerful aspect of investing in Amerigo buying . Amerigo shares is a very cost effective way to own copper . We have shown that over the last four years , it has been cheaper to buy a pound of copper by buying American shares than to buy it at the LME .

Speaker #5: In relation to a pound of copper produced by Amerigo in each CRS year, we have shown that it was extremely inexpensive to purchase a pound of copper through owning Amerigo shares.

Aurora Davidson: In relation to a pound of copper produced by Amerigo Resources Ltd. in each CRS year, we have shown that it was extremely inexpensive to purchase a pound of copper through owning Amerigo Resources Ltd. shares. In other words, in relation to the underlying commodity, there was a clear undervaluation of Amerigo Resources Ltd.'s share price, especially before the CRS was introduced. The other avenues of return provided by Amerigo Resources Ltd., share appreciation, dividends, and buybacks, were all magnified by the positive impact of that discount on a per pound of copper produced basis. Since the CRS was launched, Amerigo Resources Ltd.'s share price, and therefore the cost of its shares per pound of copper produced, has increased. This is what we wanted, and that is what investors wanted as well. Consequently, that original discount to LME copper has become smaller over time.

Speaker #5: In other words, in relation to the underlying commodity, there was a clear undervaluation of America's share price, especially before the CRS was introduced.

Speaker #5: The other avenues of return provided by Amerigo—share appreciation, dividends, and buybacks—were all magnified by the positive impact of that discount on a per pound of copper produced basis.

Speaker #5: Since the CRS was launched , Amerigo share price and therefore the cost of its shares per pound of copper produced has increased . This is what we wanted and that is what investors wanted as well .

Speaker #5: Consequently , that original discount to LME copper has become smaller over time . However , even if the discount has decreased , buying American shares still remains the most cost effective way to own a pound of copper compared to a basket of benchmarks .

Aurora Davidson: However, even if the discount has decreased, buying Amerigo Resources Ltd. shares still remains the most cost-effective way to own a pound of copper compared to a basket of benchmarks. Our analysis also showed that, in all cases except Amerigo Resources Ltd., investors in the benchmark companies have been purchasing one pound of copper at a premium to LME copper prices. In other words, controlling a pound of copper through holding other shares in the benchmark has a higher cost than the LME copper price. For investors seeking maximum exposure to copper per investment dollar, this outcome is crucial. It shows that Amerigo Resources Ltd. is a here-and-now copper play. In Amerigo Resources Ltd., you are not paying for future growth or for investing in other metals. When buying shares of Amerigo Resources Ltd., you have not been paying the high earnings multiple that is expected for growth stocks.

Speaker #5: Our analysis also showed that, in all cases except Amerigo, investors in the benchmark companies have been purchasing £1 of copper at a premium to LME copper prices.

Speaker #5: In other words , controlling a pound , a pound of copper through holding other shares in the benchmark has a higher cost than the LME .

Speaker #5: Copper price for investors seeking maximum exposure to copper per investment dollar . This outcome is crucial . It shows that Amerigo is a here and now copper plate in Amerigo , you are not paying for future growth or for investing in other metals .

Speaker #5: When buying shares of Amerigo , you have not been paying the high earnings multiple that is expected for growth stocks . You are controlling a pound of copper as cheaply as possible and more effectively than peers and copyright sales .

Aurora Davidson: You are controlling a pound of copper as cheaply as possible and more effectively than peers and copper itself. To conclude, Amerigo Resources Ltd.'s returns over the four years of the CRS have come in four flavors: share appreciation, dividends, buybacks, and a discount to the LME copper price. As share appreciation has increased, the discount has decreased. Dividends and buybacks have fueled its performance. Amerigo Resources Ltd.'s CRS has been a game changer for shareholders, outperforming other copper investments. This has occurred on a total return per share and on a per pound of copper basis. Amerigo Resources Ltd. rewards shareholders with predictable, consistent dividends, performance dividends when copper prices rise, no dilution, and the most efficient way to control a pound of copper. We are now debt-free. We look forward to many more years of success for the company and its shareholders.

Speaker #5: So to conclude , Amerigo returns over the four years of the CRS have come in four flavors share , appreciation , dividends , buybacks , and the discount to the LME copper price as share appreciation has increased , the discount has decreased .

Speaker #5: Dividends and buybacks have fueled its performance. Amerigo CRS has been a game changer for shareholders, outperforming other copper investments. This has occurred on a total return per share and on a per pound of copper basis.

Speaker #5: Amerigo rewards shareholders with predictable , consistent dividends , performance , dividends when copper prices rise , no dilution and the most efficient way to control a pound of copper .

Speaker #5: And now we are debt free . We look forward to many more years of success for the company and its shareholders . Amerigo , CFO Carmen de Mesquita will now discuss the company's financial results .

Aurora Davidson: Amerigo Resources Ltd.'s CFO, Carmen Amezquita, will now discuss the company's financial results. Carmen, please go ahead. Thanks, Aurora. I'm pleased to present the financial report for the third quarter of 2025 from Amerigo Resources Ltd. and its Minera Valle Central operation in Chile. During the three months ended September 30, 2025, the company posted a net income of $6.7 million, earnings per share of $0.04, or $0.06 Canadian, and EBITDA of $18.7 million. The increase in net income to $6.7 million compared to $2.8 million in Q3 2024 was a result of stronger fair value adjustments to copper revenue receivables and lower smelting and refining charges in response to the 2025 annual benchmark terms. Specifically, in the third quarter, there were $1.3 million in positive fair value adjustments compared to $2.7 million in negative fair value adjustments in Q3 2024, and smelting and refining charges decreased by $3 million.

Speaker #5: Carmen, please go ahead. Thanks, Aurora.

Speaker #6: I'm pleased to present the financial report for the third quarter of 2025 from Amerigo and its MVC operation in Chile during the three months ended September 30th , 2025 .

Speaker #6: The company posted a net income of $6.7 million, earnings per share of $0.04, or $0.06 Canadian, and EBITDA of $18.7 million.

Speaker #6: The increase in net income to $6.7 million, compared to $2.8 million in Q3 2024, was a result of stronger fair value adjustments to copper revenue, receivables, and lower smelting and refining charges.

Speaker #6: In response to the 2025 annual benchmark terms . Specifically , in this third quarter , there were 1.3 million in positive fair value adjustments compared to 2.7 million in negative fair value adjustments in Q3 2024 and smelting and refining charges decreased by 3 million .

Speaker #6: Revenue in Q3 was 52.5 million , compared to 45.4 million in Q3 2024 . This included copper tolling revenue of 44.1 million and molybdenum revenue of 8.3 million .

Aurora Davidson: Revenue in Q3 was $52.5 million compared to $45.4 million in Q3 2024. This included copper tolling revenue of $44.1 million and molybdenum revenue of $8.3 million. In Q3 2025, the gross value of copper tolled on behalf of DET was $67.2 million. From this gross revenue, we deducted notional items, including DET royalties of $20.6 million, smelting and refining of $3.4 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $1.3 million. Revenue also included molybdenum revenue of $8.3 million. We reported a provisional copper price of $4.54 per pound on our Q3 2025 sales. This provisional price includes mark-to-market adjustments based on the LME price curve as of September 30. The final settlement prices for July, August, and September 2025 sales will be the average LME prices for October, November, and December 2025, respectively.

Speaker #6: In Q3 2025 , the gross value of copper told on behalf of debt was 67.2 million . From this gross revenue , we deducted notional items , including debt , royalties of 20.6 million , smelting and refining of 3.4 million , and transportation of 0.4 million .

Speaker #6: And then added positive fair value adjustments to settlement receivables of $1.3 million. Revenue also included molybdenum revenue of $8.3 million. We reported a provisional copper price of $4.54 per pound on our Q3 2025 sales.

Speaker #6: This provisional price includes mark to market adjustments based on the LME price curve . As of September 30th , the final settlement prices for July , August and September 2025 sales will be the average LME prices for October , November and December 2025 , respectively .

Speaker #6: A 10% increase or decrease from the $4.54 per pound provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4 2025.

Aurora Davidson: A 10% increase or decrease from the $4.54 per pound provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4 2025 regarding Q3 2025 production. Tolling and production costs increased 4% from $38.1 million in Q3 2024 to $39.5 million in Q3 2025. The most significant cost variances between the two quarters included an increase in lime costs of $0.8 million, as more lime consumption is in line with more historic tailings processing. Increased inventory adjustments of $0.5 million from more copper delivered than produced during the quarter. An increase in DET moly royalties of $1.3 million was the result of stronger prices and production during the quarter. The gross profit after revenue and production costs was $13 million compared to $7.4 million in Q3 2024, a $5.6 million increase.

Speaker #6: Regarding Q3 2025 production , tolling and production costs increased 4% from 38.1 million in Q3 2024 to 39.5 million in Q3 2025 . The most significant cost variances between the two quarters included an increase in line costs of 0.8 million , as more line consumption is in line with more historic tailing processing , increased inventory adjustments of 0.5 million from more copper delivered than produced during the quarter , and an increase in debt .

Speaker #6: Molly royalties of 1.3 million as the result of stronger prices and production during the quarter . The gross profit after revenue and production costs was 13 million , compared to 7.4 million in Q3 2024 , a $5.6 million increase .

Speaker #6: General and administrative expenses were 1.2 million , compared to 0.9 million in the prior year quarter . These expenses included salaries , management and professional fees of 0.6 million .

Aurora Davidson: General and administrative expenses were $1.2 million compared to $0.9 million in the prior year quarter. These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.4 million, and share-based payments of $0.2 million. Other losses were $0.6 million compared to other gains of $0.6 million in the third quarter of 2024, which were driven mainly by foreign exchange fluctuations. Finance expense was $0.3 million, down from $0.9 million, with the difference driven by lower interest expense from a lower loan balance in Q3 2025, as well as a $0.3 million expense in Q3 2024 related to the fair value of interest rate swaps. Income tax expense was $4.5 million compared to $3.3 million in Q3 2024. Included in the income tax expense in Q3 2025 is $4.9 million in current tax expense and $0.4 million in deferred income tax recovery.

Speaker #6: Office and general expenses of 0.4 million , and share based payments of 0.2 million . Other losses were 0.6 million , compared to other gains of 0.6 million in the third quarter of 2024 , which were driven mainly by foreign exchange fluctuations and finance expense , was 0.3 million , down from 0.9 million , with the difference driven by lower interest expense from a lower loan balance .

Speaker #6: In Q3 2025 , as well as a $0.3 million expense in Q3 2024 . Related to the fair value of interest rate swaps , income tax expense was 4.5 million , compared to 3.3 million in Q3 2024 .

Speaker #6: Included in the income tax expense in Q3 2025 is $4.9 million in current tax expense, and $0.4 million in deferred income tax recovery.

Speaker #6: Deferred income tax is an accounting figure used to reconcile timing differences, and in Amerigo's case, it primarily arises from the differences in timing of financial and tax depreciation.

Aurora Davidson: Deferred income tax is an accounting figure used to reconcile timing differences and, in Amerigo Resources Ltd.'s case, primarily arises from the differences in timing of financial and tax depreciation. Current tax expense in Q3 2025 was $4.9 million compared to $4.4 million in Q3 2024. Before moving on to the statement of financial position, I want to mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. In Q3 2025, Amerigo Resources Ltd.'s cash cost was $1.80 per pound, decreasing from $1.93 per pound in Q3 2024, with the reduction primarily coming from a $0.16 per pound decrease in smelting and refining charges and an increase of $0.25 per pound in moly byproduct credits, offset by increases of $0.07 per pound in power costs, $0.07 per pound in lime costs, $0.04 per pound in maintenance, and $0.03 per pound in other direct costs.

Speaker #6: Current tax expense in Q3 2025 was $4.9 million, compared to $4.4 million in Q3 2024. Before moving on to the Statement of Financial Position.

Speaker #6: I want to mention some non IFRS measures used by the company . Cash costs , total cost and all in sustaining costs in Q3 2025 .

Speaker #6: Amerigo's cash cost was $1.80 per pound , decreasing from $1.93 per pound in Q3 2020 . For with the reduction primarily coming from a 16 cent per pound decrease in smelting and refining charges and an increase of $0.25 per pound in Molly byproduct credits , offset by increases of $0.07 per pound in power costs $0.07 per pound in lime costs $0.04 per pound in maintenance and $0.03 per pound in other direct costs .

Speaker #6: Total cost increased to $3.71 per pound, up $0.17 from Q3 2020. Prior costs were $3.54 per pound. This was the result of an increase of $0.27 per pound in debt.

Aurora Davidson: Total cost increased to $3.71 per pound, up $0.17 from Q3 2024's $3.54 per pound. This was the result of an increase of $0.27 per pound in DET notional royalties as a result of higher copper prices and $0.03 per pound in depreciation, offset by a decrease of $0.13 per pound in cash cost. All-in sustaining costs increased to $3.85 per pound from $3.72 per pound in Q3 2024, due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate G&A expenses, offset by a decrease of $0.06 in sustaining CapEx. Moving on to the statement of financial position. On September 30, 2025, the company held cash and cash equivalents of $28 million and restricted cash of $3.1 million, with a working capital of $0.9 million, up from a working capital deficiency of $6.5 million on December 31, 2024.

Speaker #6: Notional royalties . As a result of higher copper prices and $0.03 per pound in depreciation , offset by a decrease of $0.13 per pound in cash cost , all in sustaining costs increased to $3.85 per pound from $3.72 per pound in Q3 2024 , due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate G&A expenses , offset by a decrease of $0.06 in sustaining CapEx .

Speaker #6: Moving on to the statement of financial position on September 30th , 2025 , the company held cash and cash equivalents of 28 million and restricted cash of 3.1 million , with a working capital of 0.9 million , up from a working capital deficiency of 6.5 million on December 31st , 2024 .

Speaker #6: Trade in accounts payable decreased from $24.6 million as of December 31, 2024, to $20.2 million at the end of September 2025.

Aurora Davidson: Trade and accounts payable decreased from $24.6 million as of December 31, 2024, to $20.2 million at the end of September 2025. Current income tax liabilities decreased from $8.5 million at the end of December to $0.1 million at September 30, 2025, due mostly to the $8 million in taxes related to 2024 that were paid at the end of April when MVC's annual tax declaration was filed in Chile. For 2025, MVC's income tax at the end of September is almost fully offset by the $5.1 million in monthly tax installment payments made by MVC during the year. You will notice that the company's debt was shown as $7.3 million net of transaction fees. This debt was fully paid in October. This puts Amerigo Resources Ltd. in a zero debt position, providing additional free cash flow capacity. Regarding cash flows during the quarter, Amerigo Resources Ltd.

Speaker #6: Current income tax liabilities decreased from $8.5 million at the end of December to $0.1 million as of September 30, 2025, due mostly to the $8 million in taxes related to 2024 that were paid at the end of April.

Speaker #6: When MVC's annual tax declaration was filed in Chile for 2025, MVC's income tax at the end of September was almost fully offset by the $5.1 million in monthly tax installment payments made by MVC during the year.

Speaker #6: You will notice that the company's debt was shown as $7.3 million, net of transaction fees. This debt was fully paid in October.

Speaker #6: This puts Amerigo in a zero debt position, providing additional free cash flow capacity regarding cash flows during the quarter. It generated $12.4 million in cash flow from operations.

Aurora Davidson: generated $12.4 million in cash flow from operations. Net operating cash flow, which includes the changes in non-cash working capital, was $11.8 million. In terms of cash during the quarter, $1.3 million was used for investing activities, in other words, for CapEx payments, and $5.7 million was used in financing activities. These financing activities included Amerigo Resources Ltd.'s quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash, which was used to pay the debt in October, leaving the company with a nil balance in restricted cash going forward. Briefly touching on the results for the first three quarters of the year, our cash cost for the nine months ended September 30, 2025, was $1.93 per pound and was in line with guidance.

Speaker #6: Net operating cash flow , which includes the changes in non-cash working capital , was 11.8 million . In terms of cash during the quarter , 1.3 million was used for investing activities and other words for CapEx payments , and 5.7 million was used in financing activities .

Speaker #6: These financing activities included a quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash, which was used to pay the debt.

Speaker #6: In October, leaving the company with a nil balance in restricted cash. Going forward, briefly touching on the results for the first three quarters of the year.

Speaker #6: Our cash costs for the nine months ended September 30th , 2025 was $1 . $0.93 per pound , and was in line with guidance .

Speaker #6: Our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. Our normalized cash cost guidance excludes the signing bonus paid in Q4 in connection with Mvc's three-year collective labor agreement with the operators' union.

Aurora Davidson: Our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. Our normalized cash cost guidance excludes the signing bonus paid in Q4 in connection with MVC's three-year collective bargaining agreement with the operators' union. The agreement will be effective until October 29, 2028, and MVC will pay $4 million to its operators in Q4 2025 as a signing bonus. In 2025, MVC is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustaining CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. In the first three quarters of 2025, CapEx additions were $7.8 million and CapEx payments were $9.5 million. We currently expect actual CapEx to trend slightly below our annual CapEx guidance.

Speaker #6: The agreement will be effective until October 29th , 2028 . And MVC will pay 4 million to its operators in Q4 2025 . As a signing bonus .

Speaker #6: In 2025, MVC is expected to incur capital expenditures (CapEx) of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustaining CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. In the first three quarters of 2025, CapEx additions were $7.8 million, and CapEx payments were $9.5 million.

Speaker #6: We currently expect CapEx to trend slightly below our annual CapEx guidance. We will report Amerigo's full-year 2025 financial results in February 2026, and we want to thank you for your continued interest in the company.

Aurora Davidson: We will report Amerigo Resources Ltd.'s full year 2025 financial results in February 2026 and want to thank you for your continued interest in the company. We will now take questions from call participants. Operator, can you start on the Q&A? Yes, sorry. I must have been on mute. Sorry about that. The Q&A will begin now, and your first question will be coming from Dale Miller, an investor. Dale, please go ahead. Hi, Aurora. I think you and your team have done an outstanding job, both from the miners all the way through your organization. However, I do have one minor question. I am surprised that the board of directors has been selling actively, stocks as opposed to buying stocks. Now, I know you can't explain why they're selling in particular.

Speaker #6: We will now take questions from call participants.

Speaker #5: Operator, can you start on the Q&A?

Speaker #3: Yes . Sorry , I must have been on mute . Sorry about that . The Q&A will begin now and your first question will be coming from Dale Miller , an investor .

Speaker #3: Dale, please go ahead.

Speaker #7: Hi, Aurora. I think you and your team have done an outstanding job, both from the miners all the way through your organization.

Speaker #7: However, I do have one minor question. I am surprised that the board of directors has been selling stocks actively, as opposed to buying stocks.

Speaker #7: Now, I know you can't explain why they're selling in particular, but the picture ahead seems very rosy with the debt being paid down to zero in a three-year agreement and copper prices on a trend upward.

Aurora Davidson: The picture ahead seems very rosy with the debt being paid down to zero, three-year agreement, and copper prices on a trend upward. I don't understand the lack of interest in buying your stock from the board of directors. Thank you. Again, thank you for your total organization and your efforts. Dale, thank you for your question. It is a good question. You mentioned that there are directors selling. We have indications of two of seven directors with sale transactions this year. Just to complete the picture here, five directors have not sold anything. In fact, most of the directors, when we acquire additional shares through the exercise of in-the-money options, we're holders of those shares and we keep them.

Speaker #7: I don't understand the lack of interest in buying your stock from the board of directors. Thank you again. Thank you for your total organization and your efforts.

Speaker #5: Dale , thank you for your question . It is a good question . There . You mentioned that there are directors selling there .

Speaker #5: We have indications of two of seven directors with sale transactions this year. So just to complete the picture here, five directors have not sold anything.

Speaker #5: And in fact , most of the directors , when we exercise acquire additional options through the exercise of in the money . Excuse me , when we acquire additional shares through the exercise of in the money options , we are holders of those shares and we keep them .

Speaker #5: If there are individual sale events from independent directors , they have their own personal reasons to do so . And you would be it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company .

Aurora Davidson: If there are individual sale events from independent directors, they have their own personal reasons to do so, and you would be, it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company. There was one significant transaction by a long-time director that has been. A thorough supporter of the company through thick and skin, and he had some sales to make for personal reasons. In the process of being a decade or longer director, there may be times when you have to sell shares. I wouldn't take it out of context. I wouldn't misinterpret it as a sign of misalignment or lack of interest in the company. There are personal requirements for either tax planning or estate planning or diversification that come through from time to time, and we have to acknowledge them.

Speaker #5: There was one significant transaction by a long-time director who has been a supporter of the company through thick and thin, and he had some sales to make for personal reasons.

Speaker #5: And , you know , in the process of being a decade or longer director , there may be times when you have to sell shares .

Speaker #5: So I wouldn't take it out of context. I wouldn't misinterpret it as a sign of a misalignment or lack of interest in the company.

Speaker #5: There are, you know, personal requirements for either tax planning or estate planning or diversification that come through from time to time.

Speaker #5: And we have to we have to acknowledge them . But in overall terms , when you're looking at the overall . Picture , there is obviously a keen interest in directors , including myself and including the founder of a company , Doctor Seidler , to hold on to our shares for the long term .

Aurora Davidson: In overall terms, when you're looking at the overall picture, there is obviously a keen interest in directors, including myself and including the founder of a company, Dr. Seidler, to hold on to our shares for the long term. We are happy recipients of the CRS benefits as well. I hope that answers the question. Yes, thank you. Thank you. Your next question comes from Terry Fisher with CIBC. Please go ahead. Yes, congratulations again on another terrific quarter, particularly given the problems at El Teniente. I guess we're getting used to that now. It's almost boring, these wonderful quarters that keep coming out. I hope you're not building expectations too high. We're very happy. Anyway, I only have two quick ones for you. Number one, moly is becoming even more important these days, and it's been notoriously volatile over the years.

Speaker #5: We were happy recipients of the CRS benefits as well. I hope that answers the question.

Speaker #7: Yes , thank you .

Speaker #3: Thank you. Your next question comes from Terry Fisher with CIBC. Please go ahead.

Speaker #8: Yes. Well, congratulations again. Another terrific quarter, particularly given the problems with tenants. But I guess we're getting used to that now.

Speaker #8: It's almost boring . These wonderful quarters that keep coming out I , I hope you're not building expectations too high or but we're very happy anyway .

Speaker #8: I only have two quick ones for you . Number one , Molly's becoming even more important these days , and it's been notoriously volatile over the years .

Speaker #8: I'm wondering if you could give us a little bit of color on the molybdenum outlook for the molybdenum market. And my other question, I'm just going to table both questions.

Aurora Davidson: I'm wondering if you could give us a little bit of color on the moly outlook for the moly market. My other question, I'm just going to table both questions, is that I heard, and I can't remember the source, that Codelco is looking at maybe under some pressure, perhaps from the government, to get a bit more active with CapEx and adopting more modern technology in order to expand production and also to reduce the risk of accidents and so on. I'm wondering if that is true, and if so, would it open up any further opportunities for Amerigo Resources Ltd.? Terry, on the moly market commentary, it has been quite stable for the last years. We saw a price spike in moly prices two and a half years ago to around the range of $30 per pound.

Speaker #8: Is that I heard and I can't remember the source that Codelco is looking at . Maybe under some pressure , perhaps from the government or to get a bit more active with CapEx and adopting more modern technology and in order to expand production and also to reduce the risk of of accidents and so on .

Speaker #8: And I'm wondering if that is true, and if so, would it open up any further opportunities for Marigold?

Speaker #5: Terry on the molybdenum market commentary. It has been quite stable for the last two years. We saw a price spike in molybdenum prices two and a half years ago to around the range of $30 per pound.

Speaker #5: If you look at our numbers for the Q3 , it was we had an average price of $24 per pound , which is really good .

Aurora Davidson: If you look at our numbers for Q3, we had an average price of $24 per pound, which is really good. We had budgeted a lower number than that, so we're happy with the results. The moly market, it's a volatile market. No one seems to understand it. A bit of a black box. We don't consider ourselves experts on moly. You will see that I don't waste any of the shareholders' time with my commentary on the moly market because there is really nothing I can contribute to it. We try to dig for as much information as we can, and even from our clients, we don't get very clear responses. We take it as positive when we see the price appreciations that we saw in Q3. It's a good additional layer to have in the business, but that's about it.

Speaker #5: We had budgeted a lower number than that . So we're happy with the results . The Molly market has has a it's a volatile market .

Speaker #5: No one seems to understand it . A bit of a black box . We don't consider ourselves experts on Molly . You will see that I don't waste any of the shareholders time with with my commentary on the Molly market , because there's really nothing I can contribute to it .

Speaker #5: We try to dig for as much information as we can, and even from our clients, we don't get very clear responses.

Speaker #5: So we'll take it as , as as positive when we see the share . Sorry , the price appreciations that we saw in Q3 .

Speaker #5: It's it's a good additional layer to having the business , but that's about it . I think that we have to remain focused on on the copper operation and on , on , on the copper outlook and consider Molly a good addition that we really don't have a lot of control on .

Aurora Davidson: I think that we have to remain focused on the copper operation, on the copper outlook, and consider moly a good addition that we really don't have a lot of control on. With respect to your second question, the only thing I can comment on was a recent press article where the chair of Codelco was explaining different initiatives that they're following up in terms of automation, specifically for the deeper levels of their underground mines, which, of course, is making a reference to El Teniente. That's good news. The fact that they are looking actively and investing as they have done in the past, this is not something new. I think they're just expanding or magnifying their efforts, but they're not initiating their efforts in terms of automation. That's all good news that the strengths of Codelco could represent additional opportunities for us in the future.

Speaker #5: With respect to your second question , the only thing I can comment on was a recent press article where the chair of Codelco was explaining different initiatives that they are following up in terms of automation , specifically for more for for the deeper levels of their underground mines , which of course , is making a reference to that's good , that's good news .

Speaker #5: The fact that they are looking actively and investing as they have done in the past, this is not something new. I think they're just expanding or magnifying their efforts, but they're not initiating their efforts in terms of automation.

Speaker #5: So, that's all good news that the strength of Codelco could represent additional opportunities for us in the future. So, that's all I can say about it.

Aurora Davidson: That's all I can say about it. Okay, that's great. Muchas gracias. Thank you. Thank you. As a reminder, if you would like to ask a question, please press star one. Your next question comes from Ben Puri with Atrium Research. Please go ahead. Hi, Aurora. Congrats on another strong quarter considering the shutdown, and certainly great to see the debt being fully paid down and the dividend increase. Just on the shutdown quickly, I think I can speak for most investors that we're pleased with how you managed and minimized the production loss, or at least the loss in tailings flow. Can you actually just touch on what initiatives the company took to minimize that impact, and just where we're at in terms of that fresh tailings flow coming back online? Yes. Thanks for the question, Ben. It was a challenge that the team at MVC faced quite well.

Speaker #8: Okay. That's great. Muchas gracias.

Speaker #5: Thank you .

Speaker #3: Thank you . As a reminder , if you would like to ask a question , please press star one . Your next question comes from Ben Perry with Atrium Research .

Speaker #3: Please go ahead .

Speaker #9: Hi, Aurora. Congrats on another strong quarter. Considering the shutdown, it is certainly great to see the debt being fully paid down and the dividend increase just on the shutdown quickly.

Speaker #9: And I think I can speak for most investors that we're pleased with how you managed and minimized the production loss, or at least the loss in tailings flow.

Speaker #9: So, can you actually just touch on what initiatives the company took to minimize that impact? And just where we're at in terms of that fresh tailings flow coming back online?

Speaker #10: Okay .

Speaker #5: Yes . Thanks for the question , Ben . It was it was a challenge that the team at NBC faced quite well . So our production impact was twofold .

Aurora Davidson: Our production impact was twofold. One was the immediate one for 10 days of not receiving fresh tailings at MVC. Immediately, we ramped up on the ground the processing of historic tailings to minimize the impact. To the extent that that was done quickly and continues in place to date, that is one of the significant aspects that we did. In addition to that, we have taken advantage of having more plant capacity. The most volume-centric part of our operation are the fresh tailings, and that's where we get most of the volume, and it is the feed that takes up most of the real estate in our concentrator plant. To the extent that we have had some of that freed up, we've been able to tweak part of the operation in terms of improving classification. We have less material to classify.

Speaker #5: One was the immediate one for ten days of not receiving fresh tailings at MDC. Immediately, we ramped up on the ground.

Speaker #5: The the processing of historic tailings to minimize the the the impact . So to the extent that that was done quickly and continues in place to that date , to date , that is one of the significant aspects that we that we did .

Speaker #5: In addition to that , we have taken advantage of having more plant capacity . The most volume centric part of our operation are the fresh tailings , and that's where we get most of the of of the volume and it is the feed that takes up most of the real estate in our concentrator plant .

Speaker #5: So, to the extent that we have had some of that freed up, we've been able to tweak part of the operation in terms of improving classification.

Speaker #5: We have less material to classify . We have very good dilution at the moment that further increases the classification . We are redirecting some of the flows within the concentrator , and that has also allowed us for increased residence times during the which , which have a positive impact on recovery .

Aurora Davidson: We have very good dilution at the moment that further increases that classification. We are redirecting some of the flows within the concentrator, and that has also allowed for increased residency times, which have a positive impact on recovery. We also have two projects that have come online, which were part of our optimization projects for this year, which included improvements to the cascade operation, and that has also contributed to increased recovery. We have lower volume of fresh. We are compensating for that with more processing of historic tailings, but we have been able to increase recoveries of fresh, and that is one of the drivers that has helped us mitigate production losses. In fact, I think it's fair to state that we only had a production impact during the month of August. September was back to normal, and we have strong results as well for October.

Speaker #5: We also have two projects that have come online which were part of our optimization projects for this year, which included improvements to the Cascade operation.

Speaker #5: And that has also contributed to increased recovery. So we have a lower volume of fresh material. We are compensating for that with more processing of historic tailings.

Speaker #5: But we have been able to increase recoveries of fresh, and that is one of the drivers that has helped us mitigate production losses.

Speaker #5: In fact , we only I think it's fair to state that we only had a production impact during the month . The month of August , September was back to normal and we've we have strong results as well for October .

Speaker #9: Great . Thank you . And yeah , certainly impressive considering the small drop in your guidance for the annual the annual guidance there just sort of reflecting on Q1 and Q2 in terms of share buybacks .

Aurora Davidson: Great, thank you. And yeah, certainly impressive considering the small drop in your guidance for the annual guidance there. Just sort of reflecting on Q1 and Q2 in terms of share buybacks, we saw a lot of action on the NTIB in the first half of the year, but little to none in Q3. Was this primarily because of the shutdown, and you just wanted to sort of hold back a little cash in the till? Or can you provide a little bit of color into that Q3 drop on the buybacks? I think it's difficult to try to divide the activity on buybacks on a quarter-on-quarter basis. There are a series of factors that go into play as to how to allocate the surplus cash to additional distributions.

Speaker #9: We saw a lot of action on the NCIB in the first half of the year, but little to none in Q3.

Speaker #9: Was this primarily because of the shutdown? And you just wanted to sort of hold back a little cash in the till? Or can you provide a little bit of color into that?

Speaker #9: Q for Q3, drop on the buybacks?

Speaker #5: I think it's . Difficult to try to divide the activity on on buybacks on a quarter on quarter basis . There are a series of factors that go in to play as to how to allocate the surplus cash to additional distributions .

Speaker #5: So, as you know, one of our key commitments, the minimum commitment we have with respect to buying back shares, is not to have dilution for shareholders.

Aurora Davidson: As you know, one of our key commitments, the minimal commitment we have with respect to buying back shares, is not to have dilution for shareholders year on year. It makes sense to get your commitments out of the way as soon as you can in the year, and so there was significantly more activity. In fact, in the second quarter, we had completed our sort of weaker quarter of the year in terms of production associated with maintenance shutdowns. Copper prices were doing good. We were committed to buying back at least the amount of shares that were being issued on exercise of options. We still had six months ahead of us to continue with the key objective of reducing debt. We were not in a hurry to repay the debt in the second quarter.

Speaker #5: Year on year . So it makes it makes sense to get your your your commitments out of the way as soon as you can in the year .

Speaker #5: And so there was significantly more activity . In fact , in the second quarter , we had completed our sort of weaker quarter of the year in terms of production associated with with with maintenance shutdowns , copper prices were doing good .

Speaker #5: We were committed to buying back at least the amount of shares that were being issued on the exercise of options. And we still had six months ahead of us to continue with the key objective of reducing debt.

Speaker #5: So we were not in a hurry to repay the debt in the second quarter . Come the third quarter , we had this interruption in the month of August , which always makes us more careful about managing managing the capital .

Aurora Davidson: Come the third quarter, we had this interruption in the month of August, which always makes us more careful about managing the capital. We're always careful, but even more careful. We also saw the opportunity as copper prices started to strengthen in September of basically taking care of the debt first in the third quarter. There are a series of annual objectives. How you organize them throughout the year depends on a number of circumstances. A lot of management judgment and board decisions also have to be considered in terms of the intra-quarter allocation of funds. I think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one, but just the general annual path of continuing to return cash to shareholders. We know our timing, so we have a good view on what's happening around us and ahead of us.

Speaker #5: We're always careful, but even more careful, and we also saw the opportunity as copper prices started to strengthen. In September, we basically focused on taking care of the debt first in the third quarter.

Speaker #5: So there are a series of annual objectives . How you organize them throughout the year depends on a number of circumstances . A lot of management judgment and board decisions get also have to be considered in terms of the intra quarter allocation of funds .

Speaker #5: But I think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one, but just to the general annual path of continuing to return cash to shareholders.

Speaker #5: We know our timings . We we have a good a good view on what's happening around us and ahead of us . So we try to organize it as , as better , as best as we can .

Aurora Davidson: We try to organize it as best as we can. The general objective is the important one, and that is do what you said you're going to do, produce what you said you were going to produce, and keep returning that additional cash to shareholders. Absolutely. I think you made the right call with paying down the debt. Shareholders clearly liked that news yesterday with the stock being up so much. I'm just staying on this line of questioning, and I'll be quick here so other people can get in the mix. Just around the conservative approach you just mentioned with allocating some of your cash flow. Obviously, with paying down this debt, now you have additional cash flow. In the press release yesterday, you mentioned roughly 50% of that new cash flow will go to the increased dividend.

Speaker #5: But the general objective is an important one, and that is to do what you are going to do, produce what you said you were going to produce, and keep returning that additional cash to shareholders.

Speaker #9: Absolutely . And I , I think you made the right call with paying down the debt as shareholders clearly liked that news yesterday with the stock being up so much , just staying on this line of questioning .

Speaker #9: And I'll be I'll be quick here . So other people can get in the mix just around the conservative approach . You just mentioned with allocating some of your cash flow .

Speaker #9: Obviously, with paying down this debt, now you have additional cash flow. In the press release yesterday, you mentioned that roughly 50% of that new cash flow will go to the increased dividend.

Speaker #9: Can you just touch on what you guys plan to do with that remaining 50%? And that sort of goes with the conservative approach.

Aurora Davidson: Can you just touch on what you guys plan to do with that remaining 50%? That sort of goes with the conservative approach. I think you're taking your time with that decision. Yes. Thanks for the question, Ben. Just to use some numbers and provide the context here, we were amortizing our debt at the tune of $7 million in principal payments per year. Last year, our debt expense was $2 million. We have in front of us a figure of $9 million that is being freed up. The decision of allocating essentially 50% of that, the additional $0.04 Canadian in dividends, will have a cost of $4.7 million on an annual basis. Give or take, 50% of the cash that has been freed up now has a placeholder, and that placeholder is the increased quarterly dividend. The cash that remains is cash that is available to the company.

Speaker #9: I think you're taking your time with that decision.

Speaker #10: Yes .

Speaker #5: Thanks for the question , Ben . So . just to use some numbers and provide the context here , we were amortizing our debt at the tune of 7 million .

Speaker #5: In principal payments per year, last year our debt expense was $2 million. So we have in front of us a figure of $9 million.

Speaker #5: That is being freed . up . And the decision of allocating essentially 50% of that , the additional the additional $0.04 Canadian in dividends will have a cost of $4.7 million this year , not this year on an annual basis .

Speaker #5: So give or take 50% of the of the cash that has been freed up . Now has a has a placeholder . And that placeholder is the increased quarterly dividend .

Speaker #5: And the cash that remains remains as cash that is available to the company . The company does not have intensive capital requirements . That has been the stable position .

Aurora Davidson: The company does not have intensive capital requirements. That has been the stable position and one of the premises of having the CRS. The obvious avenue of allocation would be additional distributions, which, as you know, are performance dividends and buybacks. I hope that answers the question. We wanted to have a clear path of showing the shareholders how that cash was going to be allocated. Now 50% of it has been already committed in what we're saying is a structural change through the quarterly dividend increase. The rest remains to be allocated in the Amerigo normal course of business. Let's call it that. Understood. Thank you. Looking forward to seeing that. That's all I had today. Your next question comes from John Pulkari with Mutual of America Capital Management. Please go ahead. Thank you. Congratulations on achieving key strategic objectives.

Speaker #5: And one of the premises of having the CRF . So the obvious avenue of of allocation would be additional distributions , which , as you know , are performance dividends and buybacks .

Speaker #5: So, I hope that answers the question. We wanted to have a clear path of showing the shareholders how that cash was going to be allocated.

Speaker #5: And now, 50% of it has already been committed in what we think is a structural change through the quarterly dividend increase, and the rest remains to be allocated in the normal course of business at Amerigo.

Speaker #5: Let's call it that.

Speaker #9: Understood . Okay . Thank you . Looking forward to seeing that . And that's all I had today .

Speaker #3: Your next question comes from John Polcari with Mutual of America Capital Management. Please go ahead.

Speaker #11: Thank you . I guess along with everybody else , congratulations on achieving key strategic objectives . And I really only have one question .

Aurora Davidson: I really only have one question, and that is, what are your thoughts regarding royalty payments as the price escalates, price of copper escalates, perhaps into the mid to high $5.00 a pound range, or maybe even higher? I think the agreement on the royalties, when it was originally constructed, had limits on the upside. Can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate? John, that's a good question. Let me back up a little bit here to give you a well-rounded answer. The royalties essentially are the compensation that we give El Teniente for letting us work with their tailings.

Speaker #11: And that is what are your thoughts regarding royalty payments as the price escalates? The price of copper escalates, perhaps into the mid to high $5.00 per pound range or maybe even higher.

Speaker #11: I think the agreement on the royalties, when it was originally constructed, had limits on the upside. Can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate?

Speaker #5: John , that's a good question . Let me back up a little bit here to give you a well-rounded answer . So the royalties essentially the compensation that we give El for letting us work with our tailings , and it is a significant driver of the success of the long term relationship between MVC and lenient , because it basically provides a mechanism for a sharing of the economic benefits of the business between the purveyor of the of the tailings and the processor of the tailings .

Aurora Davidson: It is a significant driver of the success of the long-term relationship between MVC and El Teniente because it basically provides a mechanism for sharing of the economic benefits of the business between the purveyor of the tailings and the processor of the tailings. Our agreement has both. Lower and higher copper limits, which are separate for the fresh tailings and for the historic tailings. The limit for the fresh tailings is $4.80 per pound, and the limit for the historic tailings is $5.50 per pound. When we are outside of these ranges for two consecutive months, and there is also an indication that these prices will continue, we basically have to do one thing and one thing only, and that is to discuss the continuation of the royalty scale. It is a sliding scale. The higher the copper price, the higher the royalty factor with El Teniente.

Speaker #5: Our agreement has both lower and higher copper limits , which are separate for the tailings and for the historic tailings . The limit for the the fresh tailings is $4.80 per pound , and the limit for the historic tailings is $5.50 per pound .

Speaker #5: So when we are outside of these ranges for two consecutive months, and there's also an indication that these prices will continue, then we basically have to do one thing and one thing only.

Speaker #5: And that is to discuss the the continuation of the royalty scale . It is a sliding scale . So the higher the copper price , the higher the royalty factor .

Speaker #5: With El Teniente . So it is not a full renegotiation of anything else other than the royalty scale . And we expect that should this conditions arise , in fact , we have we're almost completing October , and October is the first time in history where we've seen an average LME copper price over $4 and 80 .

Aurora Davidson: It is not a full renegotiation of anything else other than the royalty scale. We expect that, should these conditions arise. In fact, we're almost completing October, and October is the first time in history where we've seen an average LME copper price over $4.80. If this condition were to continue in November, then starting in December, but not before then, we have to discuss with El Teniente the continuation of the royalty factor only. I hope that answers your question. Yes. Thank you. Just once again, I'm sure I speak for everyone on a job holder. There are no further questions at this time. I will now turn the call over to Aurora Davidson for closing remarks. Please continue. Thank you. Thank you for attending today's call. The recording and the script will be available on the Amerigo website in the next few days.

Speaker #5: So if this condition were to continue in November , then starting in December , but not before then , we have to discuss with Elton and the the continuation of the royalty factor .

Speaker #5: I hope that answers your question.

Speaker #11: Yes . Thank you . And just once again , I'm sure I speak for everyone . On Jhalda .

Speaker #3: There are no further questions at this time. I will now turn the call over to Aurora Davidson for closing remarks. Please continue.

Speaker #5: Thank you. And thank you for attending today's call. The recording and the script will be available on the American website in the next few days.

Speaker #5: This is our last earnings call of the year, so we wish you all the best as we wrap up 2025 and look forward to our next earnings call in February 2026.

Aurora Davidson: This is our last earnings call of the year. We wish you all the best as we wrap up 2025 and look forward to our next earnings call in February of 2026. Please visit our website regularly for updates and feel free to contact us with any questions or convenience. Graham, Carmen, and myself, we're always there on the other side of the email or the phone to answer any questions. Thank you for your continued interest in Amerigo. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker #5: Please visit our website regularly for updates, and feel free to contact us with any questions or concerns. Graham, Carmen, and I are always here to help.

Speaker #5: On the other side of the email or the phone to answer any questions. Thank you for your continued interest in Amerigo.