Q3 2025 Discovery Silver Corp Earnings Call

Speaker #1: Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd like to welcome you to the Discovery Silver Corp. Q3 2025 earnings call.

Operator: Ladies and gentlemen, thank you for standing by. My name is Colby. I will be your conference operator today. At this time, I would like to welcome you to the Discovery Q3 2025 Conference Call and Webcast. 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 at that time, please press star then the number 1 on your telephone keypad. If you'd like to withdraw your question at any time, please press star one again. I'd now like to turn the call over to Mark Utting, Senior Vice President, Investor Relations. Please go ahead.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers are marked, there will be a question and answer session.

Speaker #1: you'd like to ask a question at that time, please If press star, then the number one on your telephone keypad. If you'd like to withdraw your question at any time and please press star one again.

Speaker #1: I’d now like to turn the call over to Mark, Senior Vice President of Investor Relations. Please go ahead.

Speaker #1: ahead. Thanks very much,

Mark Utting: Thanks very much, Colby, and thanks everyone for joining us today for Discovery's Q3 2025 conference call and webcast. Joining me today are many members of Discovery's management team. Speakers for today's presentation include Tony Makuch, our Chief Executive Officer; Alison White, our Chief Financial Officer; Pierre Rocque, our Chief Operating Officer, as well as Eric Kallio, our Senior Vice President, Exploration and Growth; and José Jabalera, our Vice President, Corporate Affairs and Sustainability from Mexico. Then Tony will have some concluding remarks. As you know, late yesterday, we issued our Q3 2025 results press release. This release, as well as the MD&A financials are available on our website at discoverysilver.com and have been filed on SEDAR+. Before we begin, I'd like to remind you that during today's call, we will be making forward-looking statements.

Speaker #2: Colby. And thanks everyone for joining us today for Discovery's third quarter 2025 conference call and webcast. Joining me today are many members of Discovery's management team.

Speaker #2: Today's presentation includes Tony McCooch, our Chief Executive Officer; Allison White, our Chief Financial Officer; Pierre Roth, our Chief Operating Officer; Eric Callio, our Senior Vice President of Exploration and Growth; and Jose Avalera, our Vice President of Corporate Affairs and Sustainability from Mexico. Tony will also have some concluding remarks.

Speaker #2: As you know, late yesterday, we issued our Q3 2025 results press release. This release, as well as the MVNA and financials, are available on our website, discoverysilver.com, and have been filed on Cedar Plus.

Speaker #2: Before we begin, 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.

Mark Utting: These statements are based on current expectations, assumptions, and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking information. For more information on our FLI, please refer to the information on slide 2 in the slide deck, as well as our disclosures on our website. In addition, we will be making references to a number of non-GAAP measures during the presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute of measures of performance prepared in accordance with GAAP accounting standards. These measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to other issuers.

Speaker #2: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking information. For more information on our FLI, please refer to the information on slide two in the slide deck, as well as our disclosures on our website.

Speaker #2: be making references to a number of In addition, we will non-GAAP measures during the presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute of measures of performance prepared in accordance with GAAP accounting standards.

Speaker #2: These measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to other issuers. Again, I refer to Slide 3 in the deck, as well as the cautionary language on our website for more information about non-GAAP measures.

Mark Utting: Again, I refer to slide three in the deck, as well as cautionary language on our website for more information about non-GAAP measures. Finally, all dollar amounts today will be in US dollars unless otherwise indicated. With that, I'll now turn the call over to Tony Makuch, our CEO.

Speaker #2: Finally, although our amounts today will be in US dollars, unless otherwise indicated. With that, I'll now turn the call over to Tony McCooch, our CEO.

Speaker #3: Hey, good afternoon, everyone. Thanks for joining. Thanks, Mark, for the intro here and for setting this up. Maybe before I get into results, I can acknowledge the people at Discovery. I know it's a lot of people working very hard to achieve the performance that we get to talk about.

Tony Makuch: Hey, good afternoon, everyone. Thanks for joining. Thanks, Mark, for the intro here and setting this up. Maybe before I get into results, I can acknowledge the people at Discovery. There's a lot of people working very hard to get the performance here that we get to talk about. Some of them, there's a lot of people on shift, a lot of people working today. There's some people at home resting to come on shift at night, and many other people at home with their families preparing for their next shift rotation. Thanks everyone for all what you do. It's all as we come forward, let's continue to work safely, especially now as we're coming into the holiday season.

Speaker #3: Some of them, there are a lot of people on shift, a lot of people working today. There are some people at home resting to come on shift at night, and many other people at home with their families prepping for their next shift rotation.

Speaker #3: So, thanks everyone for all that you do. As we come forward, let's continue to work safely, especially now as we're coming into the holiday season.

Tony Makuch: It's a time to just maintain awareness and diligence on your safety and safety of others in the workplace so that we can all have a strong finish to the year. Looking at Q3, we turned in a very solid quarter. In particular, you know, the company doubled its adjusted earnings per share from the second quarter. We generated substantial free cash flow, and we built our cash and capital strengths. Before getting into the details, though, you know, I'll turn to Sorry, I'll just turn to slide 5. We had a very solid quarter in Q3. You know, we see from here production increased 25% to 63,000 ounces, while gold sales rose over 50% to 66,000 ounces.

Speaker #3: It's time to maintain awareness and diligence regarding your safety and the safety of others in the workplace so that we can all have a strong finish to the year.

Speaker #3: Anyway, looking at Q3, we turned in a very solid quarter. In particular, the company doubled its adjusted earnings per share from the second quarter.

Speaker #3: We generated substantial free cash flow, and we built our cash and capital strength. Before getting into the details, though, I'll turn to—sorry, I'll just turn to slide five, where we had a very solid quarter in Q3.

Speaker #3: You can see from here that production increased 25% to 63,000 ounces, while gold sales rose over 50% to 66,000 ounces. Unit costs improved this quarter, with all-in sustaining costs down 16% compared to Q2.

Tony Makuch: Unit costs improved this quarter with all-in sustaining costs up 16% or sorry, 16% lower than Q2. Going to slide 6, we achieved solid earnings performance. Alison will get into the details. I'll just review the high level numbers. Revenue totaled $237 million, a 67% increase from last quarter. Revenue in the quarter, you know, the increased revenue was brought from, you know, increased sales, 6,000 ounces of gold sales and increased gold price, the average gold price. Realizing that gold price for the quarter was $3,490 per ounce.

Speaker #3: Going to slide six, we achieved solid earnings performance. Allison will get into the details. I'll just review the high-level numbers. Revenue totaled $237 million, a 67% increase from last quarter.

Speaker #3: Revenue in the quarter with resulted from the increased revenue was brought from increased sales, 66,000 ounces of gold sales and increased gold price average or gold price realizing that gold price for the quarter was 34.90 per ounce.

Tony Makuch: EBITDA totaled $122 million, which is up more than 120% from Q2 of this year. Earnings per share was $0.05 per share, while adjusted earnings per share was $0.08 per share. As mentioned, our adjusted earnings per share doubled from last quarter. I'll let Alison give you a little more color. Slide 7 now shows our cash flow and what's happening with our cash position. As mentioned, we did generate a lot of cash flow in Q3 and really continued to strengthen our balance sheet. Operating cash flow totaled $154 million. Free cash flow was $87 million, that $87 million has tripled the level of free cash flow in Q2 of this year.

Speaker #3: EBITDA totaled 122 million, which is up more than 120% from the second quarter of this year. And earnings per share was 5 cents per share while adjusted earnings per share was 8 cents per share.

Speaker #3: As mentioned, our adjusted earnings per share doubled from last quarter. I'll add Allison and give you a little bit more color on that. Slide seven.

Speaker #3: Now, this shows our cash flow and what's happening with our cash position. As mentioned, we did generate a lot of cash flow in Q3 and really continued to strengthen our balance sheet.

Speaker #3: Operating cash flow totaled $154 million. Free cash flow was $87 million, and that $87 million was triple the level of free cash flow in the second quarter of this year.

Speaker #3: Our cash position rose 35% and now it's up to 342 million dollars. And total liquidity rose to just under 600 million dollars and the liquidity that that total liquidity includes cash on hand as well as the 250 million dollars from our new revolving credit facility we announced during the third quarter.

Tony Makuch: Our cash position rose 35% and now it's up to $342 million. Total liquidity rose to just under $600 million. Liquidity, that total liquidity includes cash on hand as well as the $250 million from our new revolving credit facility we announced during Q3. There's also a $100 million accordion feature on this facility that should be deployed. Going to slide 8, this looks at our key investment programs in the quarter. Total capital expenditures were $65 million, $44 million of which were growth capital. Many of the key programs were a combination of projects in the advancement at Pamour, where about $50 million was related to pre-stripping.

Speaker #3: And there's also a $100 million accordion feature on the facility that should be required. Going to slide eight, this looks at our key investment programs in the quarter.

Speaker #3: Total head capital expenditures were $65 million, $44 million of which were growth capital. Many of the key programs were a combination of projects in the advancement of PAMOR, where about $50 million was related to pre-stripping.

Speaker #3: We also continued with our tailings project to build out and buttress the Number Six dam. In addition, we commenced work to reconfigure the dam into multiple cells, which will benefit us in several ways as we operate it.

Tony Makuch: We also continued with our tailings project to build out and budget to number 6 dam. In addition, we are also commencing work to reconfigure the dam into multiple cells, which will benefit us in several ways as we operate it. Sustaining capital totaled $21 million in the quarter. The majority of this was capital for ongoing development at Hoyle Pond and Borden, and it also included equipment, et cetera. Going to slide 9, we have an extensive exploration program aimed at realizing the really potential at Porcupine. You know, I'll let Eric talk about this.

Speaker #3: Sustaining capital totaled $21 million in the quarter, and the majority of this was capital for ongoing development at Oil Pond in Horton. It also included equipment, etc.

Speaker #3: Going to slide nine, we have an extensive expiration program name that realizes a real potential at $45. I'll let Eric talk about this. For me, one of the exciting parts, besides the operating performance and what we can do from an operations improvement at $45, is how we can advance new projects at $45.

Tony Makuch: You know, we, you know, for me, one of the exciting parts about, you know, besides the operating performance and what we can do from an operations improvement at, in Porcupine and how we can advance some new projects at Porcupine, I think, you know, needless to say, in some of the work, and I'm sure Eric and Cara and the team will, you know, will actually be driving this. You know, in a 100-year-old mining camp, there's a lot of potential to come up with a lot of new discoveries, right? You know, we, you can see that we, you know, we had excellent results from resource conversion expansion drilling at Hoyle Pond, Borden, and Pamour. We're, you know, very encouraged with drilling results at Owl Creek. This is a high priority target.

Speaker #3: I think, needless to say, some of the work—and I'm sure Eric, Kara, and the team will likely really drive this in—but in a 100-year-old mining camp, there’s a lot of potential to come up with a lot of new discoveries.

Speaker #3: Anyway, you can see that we had excellent results from resource conversion, expansion, and drilling at Oil Pond Born and PAMOR. We are very encouraged with the drilling results at Owl Creek.

Speaker #3: This is a high-priority target. It's about three kilometers west of Oil Pond. You might call it somewhat of a new discovery or an unloved deposit that has really come to the forefront, and we see that this is a new discovery and potential new operation.

Tony Makuch: It's about 3 km west of Hoyle Pond. You might call it a somewhat of a new discovery or an unlocked deposit that really comes to the forefront and see if this is a new discovery and potential new operation. We also gave an update on our work programs at Dome mine in terms of the significant work which required in terms of work on the resource as well as on TVZ. These are two high priority targets that really going to add, continue to add or add significant value into future growth for the company. Going to slide 10, you know, this is showing a couple of our key priorities moving forward. A lot of the drilling we're doing is supporting an updated technical report for Hoyle Pond, Borden, and Pamour.

Speaker #3: And then we also gave an update on our work programs at Bone Mine in terms of looking at what's required in terms of work on the resource as well as on the TBZ zone.

Speaker #3: These are two high-priority targets that really can continue to add significant value to the future growth of the company. Going to slide 10, this shows a couple of our key priorities moving forward.

Speaker #3: A lot of the drilling we're doing is supporting an updated technical report for Oil Pond Born and PAMOR. We expect this to be released sometime in the second half of 2026.

Tony Makuch: We expect this to be released sometime in H2 2026. The ramp-up at Pamour is continuing, making very good progress. This is at Pamour, where we're building a new open pit mine. As we talked about, we're advancing 3 key studies. One on the Dome mine, what we do with the Dome resource potential can be, whether it's a pit, an underground or combination thereof. The Dome Mill itself, how we can, you know, make some improvements at the mill, both from an operating performance and reliability and reduce the cost reduction as well as for expansion of the Dome Mill. We got the TVZ zone. These, all these studies will be ongoing into next year.

Speaker #3: The ramp-up of PAMOR is continuing and making very good progress. This is the PAMOR where we're building a new open-pit mine. As we talked about, we're advancing three key studies: one on the dome mine, examining what we can do with the dome resource potential, whether it's a pit, an underground operation, or a combination thereof.

Speaker #3: The dome mill itself, how we can make some improvements at the mill, both from an operating performance and reliability, and reduce the cost, as well as for expansion of the dome mill.

Speaker #3: And we got the TBZ zone. All these studies will be ongoing into next year. Finally, going to slide 11, I'll touch briefly on Cordero.

Tony Makuch: Finally, going to slide 11, you know, I'll touch briefly on Cordero. José Jabalera is here. He'll give you more details later in the presentation. I'll just say that, you know, this is an extremely exciting project. You know, we continue to have positive developments, seeing positive developments from Mexico. We continue to be optimistic that Cordero will receive its approval very, very soon. You know, we look forward to a lot of exciting times in terms of what this can add in terms of value creation for the shareholders of Discovery. Anyway, with that, I'll turn the call over to our CFO, Alison White.

Speaker #3: Jose Abelero is here. He'll give you more details later in the presentation, but I'll just say that this is an extremely exciting project, and we continue to see positive developments from Mexico.

Speaker #3: We continue to be optimistic that Cordero will receive its approval very soon, and we look forward to a lot of exciting times in terms of what this can add in terms of value creation for the shareholders of Discovery.

Speaker #3: Anyway, with that, I'll turn the call over to our CFO, Allison White.

Speaker #2: Thank you, Tony. And good afternoon, everyone. Let's start with slide 12, where I'll provide an overview of our operating and financial performance during the quarter.

Alison White: Thank you, Tony, and good afternoon, everyone. Let's start with slide 12, well, where I'll provide an overview of our operating and financial performance during the quarter. After I complete my commentary on the financial performance, Pierre will talk about our operational performance. During the quarter, we had robust revenues of $237 million, an increase of 67% quarter-over-quarter, driven by higher gold sales to 66,200 ounces from 42,550 ounces the previous quarter. An increase of over $150 an ounce in the average realized gold price to $3,489 per ounce sold, which was bolstered by the increased gold prices throughout the quarter in the market.

Speaker #2: And then after I complete my commentary on the financial performance, Pierre will talk about our operational performance. So during the quarter, we had robust revenues of $237 million, an increase of 67% quarter over quarter, driven by gold sales of 66,200 ounces, up from 42,550 ounces in the previous quarter.

Speaker #2: And an increase of over $150 an ounce in the average realized gold price to $3,489 per ounce sold, which was bolstered by the increased gold prices throughout the quarter in the market.

Speaker #2: As mentioned, a key highlight of the third quarter was cash flow. With net cash from operating activities of 153 and a half million dollars and free cash flow totaling 86.8 million dollars.

Alison White: As mentioned, a key highlight of Q3 was cash flow with net cash from operating activities of $153 and a half million and free cash flow totaling $86.8 million. Our cash position increased by 35% to $341 and a half million during Q3. With our current cash position, as well as a new revolving credit facility for $250 million and an additional $100 million accordion feature, we remain well-capitalized to execute on growing production, improving operations, and maximizing value creation at Porcupine.

Speaker #2: Our cash position increased by 35% to 341 and a half million dollars during Q3. With our current cash position, as well as a new revolving credit facility for 250 million dollars, and an additional 100 million accordion feature, we remain well-capitalized to execute on growing production, improving operations, and maximizing value creation at 45.

Speaker #2: If we move to look at adjusted net earnings on the next slide, Discovery delivered adjusted net earnings and adjusted net earnings per share in Q3 of $61.1 million, or 8 cents per basic share. This compared to an adjusted net loss of $2.3 million, or 1 cent per share, in Q3 2024, and adjusted net earnings of $28 million, or 4 cents per basic share, in the prior quarter.

Alison White: If we move to look at adjusted net earnings on the next slide. Discovery delivered adjusted net earnings and adjusted net earnings per share in Q3 of $61.1 million or $0.08 per basic share, which compared to adjusted net loss of $2.3 million or $0.01 per share in Q3 2024 and adjusted net earnings of $28 million or $0.04 per basic share in the prior quarter. Adjusted net earnings included the exclusion of the after-tax impact of the 18 and a half million dollars of purchase price allocation adjustments during the quarter. $9.2 million of the foreign exchange gains, $3.3 million of the TSA costs or transaction costs paid to Newmont, and $1.6 million of transaction specific business development costs. Let's take a look at EBITDA on slide 14.

Speaker #2: Adjusted net earnings included the exclusion of the after-tax impact of the 18 and a half million dollars of purchase price allocation adjustment during the quarter.

Speaker #2: $9.2 million of the foreign exchange gains, $3.3 million of the TSA costs or transaction costs paid to Newmont, and $1.6 million of transaction-specific business development costs.

Speaker #2: Let's take a look at EBITDA on slide 14. Q3 EBITDA is $122 million, which increased 121% quarter over quarter, driven by higher revenue and a reduction in corporate G&A costs, largely due to one-time transaction-specific expenses related to the 45 acquisition during Q2.

Alison White: Q3 EBITDA is $122 million, which increased 121% quarter over quarter, driven by higher revenue, reduction in corporate G&A costs, largely due to one-time transaction specific expenses related to the Porcupine acquisition during Q2. Q3 EBITDA also represented earnings prior to the impact of $35.8 million of depreciation and amortization expense, with $15.2 million of net financing costs and $28.7 million of income tax expenses in Q3. Strong revenues in the current gold price environment helped our EBITDA quarter over quarter and the impact of a full quarter in Q3 versus the shortened ownership period of 76 days in Q2. Slide 15 shows our cash costs and our all-in sustaining costs.

Speaker #2: Q3 EBITDA also represented earnings prior to the impact of $35.8 million of depreciation and amortization expense, with $15.2 million of net financing costs and $28.7 million of income tax expenses in the third quarter.

Speaker #2: Strong revenues in the current gold price environment helped our EBITDA quarter over quarter, as well as the impact of a full quarter in Q3 versus the shortened ownership period of 76 days in Q2.

Speaker #2: Slide 15 shows our cash costs and our all-in sustaining costs. Operating cash costs remained steady, averaging $1,339 per ounce sold versus $1,341 per ounce sold in Q2 2025.

Alison White: Operating cash costs remained steady, averaging $1,339 per ounce sold versus $1,341 per ounce sold in Q2 2025. All-in sustaining costs averaged $1,734 per ounce sold compared to $2,074 per ounce sold the previous quarter. Site level AISC in Q3 2025 averaged $1,699 per ounce sold versus $1,849 per ounce sold in Q2. To clarify, site level AISC includes corporate G&A allocation and excludes remaining corporate G&A, share-based compensation costs, and corporate-level sustaining capital expenditures.

Speaker #2: All-in sustaining costs averaged $1,734 per ounce sold, compared to $2,074 per ounce sold in the previous quarter. Site-level AISC in Q3 2025 averaged $1,699 per ounce sold versus $1,849 per ounce sold in Q2.

Speaker #2: To clarify, site-level AISC includes corporate G&A allocation and excludes remaining corporate G&A share-based compensation costs and corporate-level sustaining capital expenditures. Overall, the improvement in AISC to $1,734 per ounce reflected a 56% increase in ounces of gold sold, lower corporate G&A costs, and the adjustment to the amortization of site closure provisions as a result of the purchase price accounting that was booked during Q3.

Alison White: Overall, the improvement in AISC to $1,734 per ounce reflected a 56% increase in ounces of gold sold, lower corporate G&A costs, the adjustment to the amortization of site closure provisions as a result of the purchase price accounting that was booked during Q3. If we move on to slide 16, Discovery's cash balance at 30 September totaled $341.5 million, an increase of 35% from $252 million at 30 June 2025. The increase of $89 million primarily resulted from net cash from operating activities of $153.5 million, partially offset by additions to mineral interest, plant, and equipment of $66.7 million. The net cash from operating activities resulted from proceeds generated from gold sales at the Porcupine operation.

Speaker #2: If we move on to slide 16, Discovery's cash balance at September 30th totaled $341.5 million and increased by 35% from $252 million at June 30th, 2025.

Speaker #2: The increase of $89 million primarily resulted from net cash from operating activities of $153.5 million, partially offset by additions to mineral interests, plant, and equipment of $66.7 million.

Speaker #2: The net cash from operating activities resulted from proceeds generated from gold sales at the 45 operations. Net cash used in operating activities and additions to mineral interests, plant, and equipment in the quarter totaled $1.2 million and $2.3 million, respectively.

Alison White: Net cash used in operating activities in addition to mineral interest, plant, and equipment in the quarter totaled $1.2 million and $2.3 million respectively. As I mentioned earlier, with our current cash as well as our new revolving credit facility for $250 million and the additional $100 million of accordion feature, Discovery's liquidity position is substantial, placing the company in a well-capitalized position as it moves forward to execute against its strategic priorities. I'll now turn the call over to Pierre Rocque, our Chief Operating Officer.

Speaker #2: As I mentioned earlier, with our current cash as well as our new revolving credit facility for $250 million and the additional $100 million accordion feature, Discovery's liquidity position is substantial.

Speaker #2: Placing the company in a well-capitalized position as it moves forward to execute against its strategic priorities. And I'll now turn the call over to Pierre Roque, our Chief Operating Officer.

Speaker #1: Thank you, Alison. It is a pleasure to be presenting today. I will be speaking to Slide 17. During Q3, we recovered over 63,000 ounces of gold, with total gold just shy of 66,000 ounces.

Pierre Rocque: Thank you, Alison. It is a pleasure to be presenting today. I will be speaking to slide 17. During Q3, we recovered over 63,000 ounces of gold with total gold poured just shy of 66,000 ounces. These results compare favorably to the over 50,000 and almost 47,000 ounces produced and poured respectively in the previous quarter. Higher production in Q3 2025 mainly reflected the favorable impact of increased mining rates and higher average rates at both Borden and Pamour. This was partially offset by a reduction in mining rates and average grades at Hoyle Pond. During Q3 2025, production at Hoyle Pond continued to be impacted by ventilation constraints during a period of high temperatures, which limited access to higher grade areas of the SOD.

Speaker #1: These results compare favorably to the over 50,000 and almost 47,000 ounces produced and poured, respectively, in the previous quarter. Higher production in Q3 2025 mainly reflected the favorable impact of increased mining rates and higher average rates at both Boarding and PAMWA.

Speaker #1: This was partially offset by a reduction in mining rates and average rates at oil. In Q3 2025, production at oil farms continued to be impacted by ventilation constraints during the period of high temperatures, which limited access to higher-grade areas of the SOD.

Pierre Rocque: At Dome Mill, we processed a total of 809,000 tons at an average grade of 2.7 grams per ton, and average recoveries of 90.3%. Based on operating days, we average around 9,300 tons per day. Mill operating costs during Q3 2025 totaled $17 million for an average of $21 per ton, which compared to $13 million and an average of $25 per ton respectively the previous quarter. The improvement primarily resulted from the 59% increase in tons processed. You have already heard many of the other cost numbers. Briefly, production costs were $107 million versus $55 million in the previous quarter. Operating cash costs per ounce sold were similar to the last quarter.

Speaker #1: At Dome Mill, we processed a total of 809,000 tons at an average grade of 2.7 grams per ton and average recoveries of 90%. Based on operating days, we average around 9,300 tons per day.

Speaker #1: Mill operating costs during Q3 2025 totaled $17 million for an average of $21 per ton, compared to $13 million and an average of $25 per ton, respectively, in the previous quarter.

Speaker #1: The improvement primarily resulted from the 59% increase in tons processed. You have already heard many of the other cost numbers. Briefly, production costs were $107 million this quarter.

Speaker #1: Operating costs versus $55 million in the previous cash costs per ounce sold were similar to the last quarter. All-in sustaining costs per ounce sold at the site level averaged $1,699 per ounce sold compared to $1,849 in Q2 Q3 2025.

Pierre Rocque: All-in sustaining costs per ounce sold at the site level averaged $1,699 per ounce sold compared to $1,849 in Q2 2025. Included in Q3 2025 all-in sustaining costs was $22 million of sustaining capital expenditure at the site level, mainly related to capital development activities and capital expenditures related to the tailings management area number 6, which increased from $15 million in 2022 to 2025. I'll now turn the call to Eric Kallio, our Senior Vice President for Exploration.

Speaker #1: All-in sustaining costs were $22 million, included in sustaining capital expenditure at the site level. This was mainly related to capital development activities and capital expenditures related to the sailing management area number six, which increased from $15 million in Q2 2025.

Speaker #1: I will now turn the call over to Eric Callio, our Senior Vice President for Exploration.

Speaker #2: Okay, thank you, Pierre. And good afternoon, everyone. I'm on slide 18. As people may have noticed, we have a lot going on in exploration.

Eric Kallio: Okay. Thank you, Pierre, and good afternoon, everyone. I'm on slide 18, and as people may have noticed, we have a lot going on in exploration. In my view, making some excellent assays from all our key projects. I'll be touching on all of these, but my first slide relates to geology and projects in the Hoyle Pond/Owl Creek area, which includes Lower Ess, TVZ, and Owl Creek East projects. Well, the first thing to note here is we're looking at a relatively small area on the east extension of the Hoyle Pond volcanic belt, and the Hoyle Pond mine is on the far east side. Mineralization is on a distinct structure which plunges to the northeast.

Speaker #2: And in my view, we are making very good progress, including some excellent assays from all our key projects. I will be touching on all of these.

Speaker #2: But my first slide relates to the geology and projects in the whole Pond Creek area, which includes the lower SQZ and all Creek Deep projects.

Speaker #2: One of the first things to note here is we're looking at a relatively small area. On the east extension of the whole pond volcanic belt, the Whole Pond mine is on the far east side.

Speaker #2: Mineralization is on a distinct lecture which plunges to the northeast. The lower S zone, which we'll be talking about very shortly, is on the northeast side of the mine, just east of the 1060 fault and the TVZ zone, and sedimentary rocks about 800 meters to the south.

Eric Kallio: The Lower Ess zone, which we will be talking about very shortly, is on the northeast side of the mine, just east of the ten sixty fault, and the TVZ zone and sedimentary rocks about 800 m to the south. In terms of Owl Creek, the project is about 3 km west of Hoyle Pond and centered on an easterly plunging wedge of volcanics just east of the Owl Creek fault, and with mineralization mostly in swarms of veins near the tip of the wedge. Next, going to slide number 19. We see a long section for Lower Ess, where as noted in our release, we added another 13 drill intercepts to lower and west sides of the resource between the 2,100 and 2,300 levels with very positive results in both cases.

Speaker #2: In terms of All Creek, the project is about three kilometers west of All Pond and centered on an easterly plunging wedge of volcanics, just east of the All Creek fault.

Speaker #2: And with mineralization mostly in swarms of veins near the tip of the wedge. So next, I'm going to slide number 19. We see a long section for lower S. As noted earlier, we added another 13 drill intercepts to the lower and west sides of the resource between the 2,100 and 2,300 levels.

Speaker #2: With very positive results in both cases. As indicated here, our drilling to depth added five new pierce points, including several highlights such as 23.95 grams per tonne over 7.1 meters near the 2300-meter level.

Eric Kallio: As indicated here, our drilling to depth added 5 new pierce points, including several highlights such as 23.95 over 7.1m near the 2,300m level, giving us strong evidence that the system is still open to depth. Drilling to the west, we added another 8 points with some additional high grades, in this case, showing good potential for new lenses further along strike. At this point, drilling is continuing with 4 drills, with the pace of drilling steadily increasing. Next, going to slide number 20. We see an image for Owl Creek, where we recently added 11 new holes testing strike and depth extensions of mineralization from the historic pit, which was mined by Falconbridge in the 1980s. Again, these holes came up with some very positive results.

Speaker #2: Given strong evidence that the system is still open to depth, we drilled to the west and added another eight points with some additional high grades. In this case, we are showing good potential for new lenses further along strike.

Speaker #2: At this point, drilling is continuing with more drills, with the pace of drilling steadily increasing. Next, going to slide number 20, we see an image for All Creek.

Speaker #2: We recently added 11 new holes testing the strength and depth extensions of mineralization from the historic pit, which was mined by fall from the ridge in the 1980s.

Speaker #2: And again, these holes came up with some very positive results. Details for the open pit, geology, and new holes are shown on the current slide.

Eric Kallio: Details for the open pit geology and new holes are shown on the current slide. As indicated, the pit is centered on the wedge of volcanics just east of the fault. All the new holes were drilled just a little bit to the east of this and designed to hit the projected down plunge extension of the mineralization in this area. As indicated in our release, the results were very favorable with several high-grade values over very good widths, as well as indicating the zone's still open to depth. At this point, the program's continuing with 3 drills and still focused at depth, but we're also planning for more holes, which will be slightly shallower levels, and then on new targets, such as the 750 zone, which is about 750 meters to the east. At this point, the program's done, yes.

Speaker #2: As indicated, the pit is centered on the wedge of volcanics just east of the fault. And all the new holes were drilled just a little bit to the east of this and designed to hit the projected down plunge extension of the mineralization in this area.

Speaker #2: As indicated in our release, the results were very favorable with several high grade values over very good widths as well as indicating the zone still open to depth.

Speaker #2: At this point, the programs are continuing with three drills and are still focused at depth. However, we are also planning for more holes, which will be at slightly shallower levels and will target new areas such as the 750 zone, which is about 750 meters to the east.

Speaker #2: At this point, the programs and then turn to my next slide, 21. On slide 21, we see an image for the TVZ. Where we very recently started drilling to prepare for the maiden resource in 2026.

Eric Kallio: Turn to our next slide, 21. On slide 21, we see an image for the TVZ, where we very recently started drilling to prepare for the maiden resource in 2026. As mentioned, the TVZ is a significant zone of mineralization on the south side of the mine, with mineralization being contained in a northeasterly plunging shear zone. It was discovered as this by Goldcorp between 2008 and 2014, put on pause mainly due to low gold prices and additional work that was required. Before pausing, however, the company developed several excellent drill platforms and added about 400 holes to allow definition of the broad target that we see here shown in green. This provides an excellent starting point for work going ahead.

Speaker #2: As mentioned, the TVZ is a significant zone of mineralization on the south side of the mine, with mineralization being contained in a northeasterly plunging shear zone.

Speaker #2: It was discovered in advance by Gold Corp between 2008 and 2014, but then put on pause mainly due to local prices and additional work that was required.

Speaker #2: Before pausing, however, the company developed several excellent drill platforms and added about 400 holes to allow definition of the broad target we see here, shown in green.

Speaker #2: And this provides an excellent starting point for work going ahead. Considering all this, our near-term plan is basically just to do a lot more drilling to infill and extend as much of this as possible before we do the resource update with some of this being from historic platforms that we can see here on the slide and some from new deeper ones on 1680 and the 1810 levels.

Eric Kallio: During all this, our near-term plan is basically just to do a lot more drilling to infill and extend as much of this as possible before we do the resource update. With some of this being from historic platforms that we can see here on the slide and some from new deeper ones on 1680 and the 1810 levels. Drilling is just underway, and we have 1 drill on the 1680 level, but we have 2 additional starting very shortly on the 1210 level. We expect to see a lot of new results coming from here very soon. Turning to slide number 22, we see a planned view of the Borden mine, where we completed 19 more holes targeting the northeast portion of the main zone, which is the host for most of the gold here.

Speaker #2: Drilling is just underway, and we have one drill on the 1,680 level. However, we have two additional drills starting very shortly on the 1,210 level.

Speaker #2: So, we expect to see a lot of new results coming from here very soon. Turning to slide number 22, we see a planned view of the board and mine, where we completed 19 more holes targeting the northeast portion of the main zone, which is the host for most of the gold here.

Speaker #2: As indicated, all drilling is being done from a series of cutouts in the 585 drift, which sits about two to 300 meters in the hanging wall to the target.

Eric Kallio: As indicated, all drilling is being done from a series of cutouts in the 585 drift, which sits about 200 to 300 meters in the hanging wall to the target, with most recent holes being from cutouts 5, 6, and 7. Looking at results, we believe they are all very positive, with many of the holes indicating similar or better grades and widths than current resources, including several highlights, such as 9.41 over 12.6, 19.29 over 5.2, 13.88 over 6.9. Given all this and the limited surface drilling for at least a 1 kilometer to the northeast, we believe Borden is in very good position for future growth. Programs continuing with 3 drills working from the same cutouts, as well as development is now in progress to extend the drift even further.

Speaker #2: With most recent holes being from cutouts five, six, and seven. Looking at the results, we believe they are all very positive, with many of the holes indicating similar or better grades and widths than current resources, including several highlights such as 9.41 over 12.6, 19.29 over 5.2, and 13.88 over 6.9.

Speaker #2: Given all this and the limited surface drilling for at least a kilometer to the northeast, we believe boarding is in very good position for future growth.

Speaker #2: Programs continuing with three drills working from the same cutouts as well as development is now in progress to extend the drift even further. Planning is also in progress to add a surface rig to start testing the area northeast of the mine and long strike of the underground drift.

Eric Kallio: Planning is also in progress to add a surface rig to start testing the area northeast of the mine and long strike of the underground drift. Turning to slide number 23, we have the Pamour, where we received assays from another 32 holes testing within and surrounding the new open pit resource. To give you some perspective here, the Pamour's about 20 km east of Timmins, was a major c-gold producer from the 1930s until the late 1980s. The key infrastructure for the project included the small pit and shaft, which you can see in the central part of the slide, shown with the black outline, as well as the Broulan Pit to the west, and then the Hoyle Pond shaft is to the east.

Speaker #2: So, turning to slide number 23, we have the PAMOR, where we received assays from another 32 holes testing within and surrounding the new open pit resource.

Speaker #2: And to give you some perspective here, the PAMOR, about 20 kilometers east of Timmins, was a major gold producer from the 1930s until the late 1980s.

Speaker #2: The key infrastructure for the project included the small pit and shaft, which you can see in the central part of the slide, shown with the black outline.

Speaker #2: Pit to the west and then the hole, as well as the brew line shaft to the east. Geologically, the mine is on the north side of the Duster Porcupine Fault and straddles a major unconformity between volcanic and sedimentary rocks, with mineralization in vein swarms and stockworks both on the unconformity and in the volcanic rocks that sit to the north.

Eric Kallio: Geologically, the mine is on the north side of the Destor-Porcupine Fault, which straddles a major unconformity between volcanic and sedimentary rocks, with mineralization in vein swamps and stock works, both on the unconformity and in the volcanic rocks that sit to the north. The new drilling was designed mainly to upgrade and expand resources within the new pit shells adjacent to the historic Pamour workings, and it easily met our expectations with multiple highlights from several areas, including some standouts such as 1.44 over 104.6 and 1.07 over 54.5. The drill program is contained here with 3 drills focused on the east, west, and central parts of the current pit, with planning in progress to expand the scope to areas even further along strike and depth.

Speaker #2: The new drilling was designed mainly to upgrade and expand resources within the new pit shells adjacent to the historic PAMOR workings. And it easily met our expectations for multiple highlights from several areas, including some standouts such as 1.44 over 104.6 and 1.07 over 54.5.

Speaker #2: The drill program is continuing here with three drills focused on the east, west, and central parts of the current pit, with planning in progress to expand the scope to areas even further along strike and depth.

Eric Kallio: We hope to be able to re-report more on these in the future. Turning to my last slide, which is number 24, we have the Dome, which is another great project where it just started drilling to support new resource studies in 2026. As you can see, this is a slide with a lot going on here, and the key things that I'd like to get to are really the geology setting and the current drilling. To start, I'll just point out that the entire project is actually centered on the historic pit, which is in the middle of the slide and marked here in cyan. The overall project is actually just an extension of this to the depth.

Speaker #2: And we hope to be able to report more on these in the future. And then turning to my last slide, which is number 24.

Speaker #2: We have the Dome, which is another great project where it just started drilling to support new resource studies in 2000, 2026. And as you can see, this is a slide with a lot going on here.

Speaker #2: And the key things that I'd like to get to are really the geology setting and the current drilling. But to start, I'll just point out that our entire project is actually centered on the historic pit, which is in the middle of the slide and marked here in cyan.

Speaker #2: And the overall project is actually just an expansion of this to depth. So that the current resource pit and the smaller alternative in red are just really envelopes to mine the same ore body to depth.

Eric Kallio: That the current resource pit and the smaller alternative in red are just really envelopes to mine the same ore body to depth. If you look at in terms of geology, what we're looking at is the bright colors here overlapping everything. If you're able to see all this, you'll see that the pit is centered in actually a prime geological environment at the junction of 2 major structures, with one being a major contact between volcanics and sediments, which is called the Greenstone Nose, and the other being the Dome Fault. The Greenstone Nose is mainly on the west part of the pit, marked with green, and the Dome Fault is the orange-brown line kind of going through the center of the pit in a northeasterly direction.

Speaker #2: And if you look at it in terms of geology, what we're looking at is the bright colors here. What we're mapping, if you're able to see all this, you'll see that the pit is centered and actually in a prime geological environment at the junction of two major structures, with one being a major contact between volcanics and sediments, which is called the Greenstone Nose, and the other being the dome fault.

Speaker #2: The Greenstone Nose is mainly on the west part of the pit, marked with green, and the dome fault is the orange-brown line kind of going through the center of the pit in a northeasterly direction.

Speaker #2: According to the note, almost all mineralization in the pit area lies along these two structures, and that both of these, along with the mineralization, plunge at a shallow angle to the northeast.

Eric Kallio: Important to note is that almost all mineralization in the pit area lies along these two structures, and that both of these and the mineralization plunges at a shallow angle to the northeast. In terms of the current drill program, we're aiming for 7,500 meters in 2025, a much larger program in 2026, with most of the focus being on upgrading the pit model but also looking at underground potential below. Drilling to present is in progress with 1 drill and working to test the 2 areas marked with yellow stars, which are on the Dome Fault, but with planning in progress for more northerly areas on the Greenstone Nose. In summary, a lot of projects in progress, a lot of good results. With that, I'll pass over to José Jabalera, our VP Corporate Affairs and Sustainability, Mexico.

Speaker #2: In terms of the 7,500 meters in 2025, we are aiming for a much larger program in 2026. Most of the focus will be on upgrading the pit model, but we will also be looking at the underground potential below.

Speaker #2: Building the present is in progress with one drill, and we are working to test the two areas marked with the yellow stars, which are on the dome fault. We are also planning for more northerly areas on the Greenstone Nose.

Speaker #2: In summary, we have a lot of projects in progress, and we are seeing many good results. Now, I'll pass it over to Jose Avalera, our VP of Corporate Affairs and Sustainability for Mexico.

Speaker #2: Thank you, Eric. We continue to make progress on the Cordero project in Mexico. We are still in the evaluation of our main permit. There is an MIA with Semarnat.

José Jabalera: Thank you, Eric. Hi, we continue progress on the Cordero project in Mexico. We're still in evaluation our main permit there in the MIA on SEMARNAT. We are increasing dialogue with the senior level officials in the government. A couple more meetings with them that will be very positive. We are seeing recently an approval of a new open pit in Mexico, so that give us a sign, a very positive sign to maybe we're on the line. The things are changing in Mexico. It's making progress on the permitting side.

Speaker #2: But we are increasing dialogue with senior-level officials in the government. A couple more meetings with them, and we will be very positive. Recently, we have seen the approval of a new open pit in Mexico.

Speaker #2: So that gives us a sign, a very positive sign, to maybe where we are on the line. So things are changing in Mexico.

Speaker #2: It's making progress on the permitting side. Additionally, a digital work that we are doing includes some studies and evaluations around our options regarding the power.

José Jabalera: Also additional work that we are doing around there is some studies and evaluations around our options around the power and also around the water that will be taking care of the sustainability of the project. We will be working with treated water around the break. That's around Cordero. I'm passing this to Tony Makuch, our CEO.

Speaker #2: And also around the water that will be taking care of the sustainability of the project. We will be working with Treasure Water on the project.

Speaker #2: So that's around Cordero. So I'm passing the words to Tony McCooch, our CEO.

Speaker #3: Thanks, Jose. And maybe then to conclude on slide 26, again, you can really see, and they come out of the presentation. We had a very solid quarter in Q3.

Tony Makuch: Thanks, José. Maybe then I'll conclude on slide 26. You know, you can really see and, you know, from our presentation, we had a very solid quarter in Q3. You know, I'm not sure how much we highlight, but we feel very confident we're positioned to finish the year with a very solid, good quarter and a good quarter in Q4. As I've said many times, we have a lot of work to do because we have a lot of opportunity here. You know, there's a lot more maybe as we progress into next year, we'll be able to talk to you about a lot of the exciting things that we're seeing. You know, we're advancing a number of studies.

Speaker #3: And we give, I'm not sure how much we highlight, but we can drill very confidently we're positioned to finish the year with a very solid, good quarter and a good quarter in Q4.

Speaker #3: As I have said many times, we have a lot of work to do because we have a lot of opportunity here. And there's a lot more maybe as we progress into next year, we'll be able to talk to you about a lot of the exciting things that we see.

Speaker #3: We're advancing a number of studies. We talk about dome, TBZ, and a lot of opportunity for evaluation upside. You can see from the expansion we have a lot of upside on expiration.

Tony Makuch: We talk about Dome, TVZ, you know, a lot of opportunity for valuation upside. You can see from the exploration, we have a lot of upside on exploration. Again, you know, I don't think, take it lightly. I think the opportunity for new discoveries in a 100-year-old Mining Camp is phenomenal. You know, we should also, you know, recognize that we're in a pretty good gold price environment, a lot more better so than maybe people in the past. There's a lot of showings and a lot of past drill results that we can follow up on and we really believe there were a lot of great things within it and turn them into ore bodies.

Speaker #3: And again, I don't take it lightly. I think the opportunity for new discoveries in a 100-year-old mining camp is phenomenal. We should also recognize that we're in a pretty good gold price environment, a lot better than maybe people in the past.

Speaker #3: And there's a lot of showings and a lot of past drill results that we can follow up on. We really, really do a lot of great things within it.

Speaker #3: It turned them into ore bodies. And at Cordero, as you heard from Jose, there have been a number of positive developments. We're looking forward to receiving the RMI approval and advancing that project in due course.

Tony Makuch: You know, as at Cordero, as you heard from José, there have been a number of positive developments. We're looking forward to receiving the MIA approval on that, advancing that project, you know, in due course. Underlying everything we do, you know, it's very important to see that we are, from a balance sheet perspective, we're in a very strong financial position. We have over $600 million of total liquidity on the balance sheet, we are well-placed to finance all of our growth plans. The, you know, before closing, maybe, you know, I want to acknowledge and say how honored we are to, and value our, how we value our strong relationship with our First Nation partners in the region, in the Porcupine region.

Speaker #3: And then, underlying everything we do, it's very important to see that, from a balance sheet perspective, we're in a very strong financial position.

Speaker #3: We have over $600 million of total liquidity on the balance sheet. And we are well placed to finance all of our growth plans. But before closing, maybe I want to acknowledge and say how honored we are to and value our how we value our strong relationship with our first nation partners in the region, in the fertile region.

Speaker #3: In October, we announced the resource development agreement we'll take with AgNew Nation. Through this agreement, we established framework for a cooperative to be beneficial relationship moving forward.

Tony Makuch: In October, we announced a resource development agreement with the Wahgoshig Nation. Through this agreement, we established a framework for a cooperative, mutually beneficial relationship moving forward. We value very much our agreements with the our other First Nation partners in Porcupine, including Attawapiskat, Mattagami, the Saschuane Flying Post, and Chapleau, including Mishkeegogamang, Grassy Narrows, the Chapleau Ojibwe, and Chapleau Cree. We look forward to this further, building further relationships and growing our businesses with them. Thank you for the trust that you've given to us. Anyway, with that, I'll thank you all again for participating in the call, and we'll be happy to take any questions.

Speaker #3: We value very much our agreements with our other First Nation partners in Porcupine, including Aberteeve Anish and Epic. The Tagine, The Thatch One Flying Post, and in Chapelo, including Mishka Colton, Brunswick House, the Chapelo of Gibbway, and the Chapelo Cree.

Speaker #3: We look forward to further building relationships and growing our businesses with them. Thank you for the trust that you've given to us.

Speaker #3: Anyway, with that, I'll thank you all again for participating in our call. We'll be happy to take any questions.

Operator: Thank you. We will now begin the question-and-answer session. If you'd like to ask a question, please press star then the number 1 on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, simply press star 1 again. Thank you. Your first question comes from the line of Cosmos Chiu with CIBC. Your line is open.

Speaker #1: Thank you. We will now begin the question-and-answer session. If you'd like to ask a question, please press star, then the number one on your telephone keypad to raise your hand and enter the queue.

Speaker #1: If you'd like to withdraw your question at any time, simply press star one again. Thank you. Your first question comes from the line of Cosmos Qiu with CIBC.

Speaker #1: Your line is

Speaker #1: open. Hi.

Cosmos Chiu: Hi. Thanks, Tony and team, and congrats on a very strong Q3. Maybe my first question is on your reporting. I noticed that, you know, in Q3, the reporting is a bit more high level. I think in the past, you have given us, you know, more granularity in terms of how much tonnage was coming from, say, Hoyle Pond and Pamour individually, but I didn't see that for Q3. I guess my question, Tony, is, number one, is this a permanent change, or are we gonna get some of that detail later on in future quarters? Number two, why that change? Number three, you know, you kind of talked about it, or Pierre kind of talked about the fact that Hoyle Pond wasn't as good, but Pamour and Borden were good, so it offset it.

Speaker #4: Thanks, Tony and team, and congrats on a very strong Q3. Maybe my first question is on your reporting. I noticed that in Q3, the reporting is a bit more high level.

Speaker #4: I think in the past, you have given us more granularity in terms of how much tonnage was coming from, say, oil ponds and palm oil individually.

Speaker #4: But I didn't see that for Q3. So I guess my question, Tony, is number one, is this a permanent change, or are we going to get some of that detail later on in future quarters?

Speaker #4: Number two, why that change? And then number three, you kind of talked about it or Pierre kind of talked about the fact that oil pond wasn't as good, but palm oil and boarding were good.

Speaker #4: So it offset it. But overall, the grade still came down from 3.39 last quarter to 2.69. So how should we look at it? How should we evaluate it in terms of how each of these assets are performing?

Cosmos Chiu: Overall, you know, the grades still came down from 3.39 last quarter to 2.69. How should we look at it? How should we evaluate it in terms of how each of these assets are performing? Or, you know, a better question is, how do you evaluate how each of these components are performing?

Speaker #4: Or a better question is, how do you evaluate how each of these components are performing?

Speaker #3: Yeah. Okay. Well, thanks, Cosmo. Good question. I mean, just to make sure we understand, we intend to mine these businesses in a very granular form.

Tony Makuch: Yeah, okay. Well, thanks, Cosmos. Good questions. I mean, you know, just to make sure we understand, like, we intend to mine these businesses in a very granular form. We do wanna manage each one of our businesses and really know what's going on. I guess, you know, maybe the thing we realized from last quarter to this quarter, in terms of the way the business is currently informed and we're, as we're transitioning, through some of the, you know, the legacy systems we have. You know, we're still running through legacy accounting systems and a lot of processes that are in place. There's a lot of processes we're working on, you know.

Speaker #3: We do want to offer managing each one of our businesses and really know what's going on. I guess maybe the thing we realized from last quarter to this quarter, in terms of the way the business is currently informed, and as we're transitioning through some of the legacy systems we have, we're still running through legacy accounting systems and a lot of processes that are in place.

Speaker #3: There's a lot of processes we're working on. And then that's on the financial side, how we're tracking costs, etc. How we're mines and stockpiles and how things are getting processed through the plant.

Tony Makuch: That's on the financial side, how we're tracking costs, et cetera, how we're tracking, you know, material movement from mines and stockpiles and how things are getting processed through the plant, how we're tracking metallurgical recoveries. A lot of areas and, you know, there's a lot of things we need to manage. You know, we feel like maybe at this point in time, until we have all of our systems in place, where I think we're gonna have to work towards reporting more of in a consolidated form in order to give really truly accurate information. We could, you know, we have a general sense on what's happening.

Speaker #3: How we're tracking metallurgical recoveries. A lot of areas. And there's a lot of things we need to manage. And we feel like maybe at this point in time, until we have all of our systems in place, I think we're going to have to work towards reporting more of it in a consolidated form in order to give really truly accurate information.

Speaker #3: We could have a general sense of what's happening and maybe more than a general sense of what's happening in each operation. But there's still a lot of question marks on things.

Tony Makuch: Well, maybe more than a general sense of what's happening in each operation, but there's still a lot of question marks on things. So we, I think we're choosing to do the, to report and consolidate at this point in time. We can tell you that our goal, you know, we're coming into next year, our accounting system probably being in place by June of next year, you know, our SAP. You know, Alison can give you more comments on that. We have a lot of work to do in our asset lab and met lab. We have a lot of work to do in processes in terms of what's coming from underground, understanding our resource models. We're establishing things so we have a better handle on grade and grade delivery.

Speaker #3: And so I think we've chosen to do the report in a consolidated at this point in time. But you can tell you that our goal we're coming into next year, our accounting system probably being placed by June of next year.

Speaker #3: Our SAP and Alison can give you more comments on that. We have a lot of work to do in our asset lab and met lab.

Speaker #3: We have a lot of work to do in processes in terms of what's coming from underground, understanding our resource models. We're establishing things. So we have a better handle on grade and grade delivery.

Speaker #3: And there was a lot of stockpiles, a lot of things happening there. And so we just felt that it's probably better to give a consolidated number because that is the one true number that can really tell you what's going on.

Tony Makuch: You know, there's a lot of stockpiles, a lot of things happening there. We just felt that, you know, it's probably better to give a consolidated number because that is the one true number that can really tell you what's going on. In terms of your second question, maybe I'll get Pierre. You wanna give some color there? Hopefully, that's a good enough answer, Cosmos.

Speaker #3: In terms of your second question, maybe I'll get Pierre. You want to give some color there? Hopefully, that's a

Speaker #3: In terms of your second question, maybe I'll get Pierre. You want to give some color there? Hopefully, that's an answer, Cosmo. Yeah.

Cosmos Chiu: Yeah. Thanks, Tony. That's great. Yeah. Hi, Pierre.

Speaker #4: That's great. Yeah. Hi, Pierre.

Pierre Rocque: Hi. You want an answer about the grade or about the different?

Speaker #3: Hi. So, do you want an answer about the grade or about the different?

Cosmos Chiu: Like how should we look at it? I know the reason why it came down. Maybe Hoyle Pond is higher grade, but how can we use these numbers in the meantime as you kind of ramp up on the accounting?

Speaker #4: Like how should we look at it? I know the reason why it came down: maybe oil pond is higher, higher grade. But how can we use these numbers in the meantime as you kind of ramp up on the...

Speaker #4: accounting? Right.

Pierre Rocque: Right. In terms of the average grade, what happened at Hoyle is, as you know, during summertime, we had some very, very hot days, and that translated into very hot work environment, especially in the stopes at depth. As a coincidence, maybe that's where our high-grade stopes are located. We had to basically slow down or sometimes stop the extraction of those stopes. That was during Q3. Of course, with winter being upon us, that's not an issue anymore, and we have restarted those stopes. We're planning ventilation upgrades, for example, twinning vent raises. If that's not sufficient, we're going to shift the focus on the upper areas. We're looking at various alternatives here to improve situation such as, you know, cooling and refrigeration. We're also improving practices that we have for sampling in the stopes.

Speaker #3: So in terms of the average grade, what happened at oil is, as you know, during summertime, we had some very, very hot days. And that translated into very hot work environment, especially in the stoves at depth.

Speaker #3: And as a coincidence, maybe that's where our high-grade stoves are located. So we had to basically slow down or sometimes stop the extraction of those stoves that was during Q3.

Speaker #3: Now, of course, with winter being upon us, that's not an issue. And we had restarted those stoves. We're planning ventilation of grades. So for example, twinning vent raises and if that's not sufficient, we're going to shift the focus on the upper areas.

Speaker #3: So we're looking at various alternatives here to improve situations such as cooling and refrigeration. We're also improving practices that we have for sampling in the stoves.

Pierre Rocque: As Tony just mentioned, we inherited some procedures and standards from the previous owner that are different from our own procedures and standards. We're putting that in place, and we expect improvement in the run-of-mine grade from Hoyle Pond in Q4.

Speaker #3: As Tony just mentioned, they inherited some procedures and standards from the previous owner that are different from our own procedures and standards. So we're putting that in place.

Speaker #3: And we expect improvement in the run-of-mine grade from oil pond in Q4.

Speaker #4: Great. Maybe if I can switch gears a little bit. On the mill, I noticed that there was a five-day planned maintenance shutdown in Q3.

Cosmos Chiu: Great. Maybe if I can switch gears a little bit on the mill. I noticed that there was a 5-day shutdown, you know, planned maintenance shutdown in Q3. There was also a 2-week shutdown in the previous quarter. I'm just trying to, you know, figure out some of these, you know, items that you did seem to be kind of not as recurring, like, you know, replacing or replacing the discharge head of the rod mill and rebuilding the tertiary crusher and things like that. I guess my question is, number 1, what should we expect in terms of maintenance schedule on a go-forward basis, and the impact on availability? Number 2, you know, the cost per ton, it's great. I saw that it went down quite a bit here.

Speaker #4: There was also a two-week shutdown in the previous quarter. So I'm just trying to figure out some of these items that did seem to be kind of not as recurring, like replacing the discharge head of the rod mill and rebuilding the tertiary crusher and things like that.

Speaker #4: So I guess my question is, number one, what should we expect in terms of the maintenance schedule on a go-forward basis? And the impact on availability.

Speaker #4: And number two, the cost per ton is great. I saw that it went down quite a bit, Pierre, as you mentioned: from $25.40 to $21.20, and then to $21.15, based on the increase in throughput by about over 50%.

Cosmos Chiu: As you mentioned, 2540 to 2120, 2115, on the basis of the increase in throughput by about over 50%. Your nameplate is still, you know, 12,000. Can we see a further decrease in the cost per ton in terms of milling as you reach, you know, that higher availability and also reach potentially that 12,000 tons per day?

Speaker #4: But your nameplate is still 12,000. So can we see a further decrease in the cost per ton in terms of milling as you reach that higher availability and also potentially reach that 12,000 tons per day?

Speaker #4: Day? Maybe I'll let Gord answer the...

Tony Makuch: Maybe I'll let Gord answer the question, there's, you know, a number of things Gord's working on to help improve processing. Go ahead, Gord.

Speaker #3: But there are all these projects that involve a number of initiatives aimed at improving the process. And go ahead. So, we've replaced the thickener rake drive; that's a one-time fix.

[Company Representative] (Discovery Silver): We've replaced the thickener rake drives. That's a one-time fix. We replaced the shell and the discharge head on B rod mill. It's another one-time shell. We have tanks in the leach circuit that need replacement that we're working on. We also have CIP tanks that we're working on. There's a lot of one-time costs that are going in. While we're doing that, we're making process changes as well to improve the throughput. We're also working on recovery. We are working towards a 12,000 ton per day mill with a 93% recovery. We're just not there yet.

Speaker #3: We replaced the shell and the discharge head on the B rod mill. It's another one-time shell. We have tanks in the leaf circuit that need replacement, and we're working on that.

Speaker #3: So, there's a lot of one-time costs that are going in. While we're doing that, we're making process changes as well to improve the throughput.

Speaker #3: We're also working on recovery. So, we are working towards a 12,000-ton-per-day mill with a 93% recovery. We're just not there.

Speaker #3: yet. Great.

Cosmos Chiu: Great. Could you share with us, you know, are we expecting any kind of maintenance shutdown in Q4? If you do reach 12,000 tons per day, Gord, you know, we should see a further decrease in the cost per ton mill, right?

Speaker #4: And then could you share with us are we expecting to kind of maintenance shutdown in Q4? And if you do reach 12,000 tons per day, Gord, we should see a further decrease in the cost per ton milling,

[Company Representative] (Discovery Silver): Yeah. I think you'll see we're slowly increasing as we go with these improvements. There will be a shutdown in Q4. That's one of the reasons the plant's in the condition it is. There was no maintenance done prior.

Speaker #3: I think you'll see we're slowly increasing as we go with these. Yeah, Q4 is one of the reasons improvements. There was no maintenance done, and there will be a shutdown in prior.

Speaker #3: the plant's in the condition it is. There

Cosmos Chiu: Okay. Maybe one last question. I'm trying to decide on either Mexico or exploration, but I'll go stick with Mexico. I guess, you know, you kind of touched on Cordero, and in Mexico, we've actually seen permits being granted recently. Any kind of read-through to Cordero, you know, your project. On top of that as well, Tony, maybe bigger picture, is Cordero something that if you do get the permits and, or when you do get your permits, is this something that you want to build or is it something that, you know, you might want to find a strategic partner for it? Maybe it's too early to answer the question, how should we look at it?

Speaker #4: last question. I'm trying to decide on either Mexico or Mexico. And I guess exploration. But I'll stick with you kind of touched on Okay.

Speaker #4: Cadero and in Mexico, we've actually seen permits being granted. And maybe one Recently. So any kind of read-through to Cadero your project? And then on top of that as well, Tony, maybe bigger picture, is Cadero something that if you do get the permits or when you do get your permits, is it something that you want to build?

Speaker #4: Or is it something that you might want to find a strategic partner for? Maybe it's too early to answer the question, but how should we look at it?

Speaker #3: You want to start, Jose? Or do you want me to?

Tony Makuch: You wanna start, José, or you want me to start? You know, first off and foremost, like, Cordero is a very valuable project and definitely something that it'll be a cornerstone asset in the silver space. You know, in terms of building it, we're well set up to build it. Our goal here is to do what we can to maximize value for our shareholders. You know, we see the opportunity in what we do. We're gonna have a lot of options once we get our permit then, you know, that might be a time to talk about.

Speaker #3: start? Well, first off and

Speaker #4: Foremost, Cadero is a very valuable project and definitely something that would be a cornerstone asset in the silver space. In terms of building it, we’re well set up to build it, and our goal here is to do what we can to maximize value for our shareholders. We see the opportunities in what we do.

Speaker #4: We're going to have a lot of options once we get our permit. And that might be a time to talk about. But I can sit there and say within our DNA the first thing we do normally is a great value for shareholders: we build it ourselves.

Tony Makuch: You know, I can sit there and say, within our DNA, the first thing we do normally is a great value for shareholders is we build it ourselves, right? On the permitting side, José.

Speaker #4: But on the permitting side, Jose, and.

José Jabalera: Yeah, on the permitting side, we've seen recently new permits being granted for a new open pit and an expansion around that. That's it. That's the authorities progressing on the backlog that they had on permits around mining and things like that. We're pretty sure that this thing moving will be a positive thing for us and for mining industry in Mexico to get to see progress in the next months.

Speaker #3: Yeah. On the permitting side, we've seen recently new permits being granted for a new open pit and an expansion around that. So that's it.

Speaker #3: The authorities progressing on the backload that they added on permits around mining and things like that. So we're pretty sure that this thing moving will be a positive thing for us and for mining industry in Mexico.

Speaker #3: We expect to see progress in the next months.

Speaker #4: Great. Thanks. I don't want to talk to Mike, so those are the other questions I have. I'll talk to you next time, Eric. Congrats again on a very good Q4.

Cosmos Chiu: Great. Thanks. I don't want to hog the mic, so those are all the questions I have. I'll talk to you next time, Eric. Congrats again on a very good Q3.

Speaker #3: Yeah. Thanks, Cosmo.

Tony Makuch: Yeah, thanks, Cosmos.

Speaker #1: Your next question comes from the line of Phil Kerr with Fintom Financial. Your line is now open.

Operator: Your next question comes from the line of Phil Ker with Ventum Financial. Your line is open.

Speaker #1: open. Thanks,

Phil Ker: Thanks, operator. Congrats, Tony and team. Two questions today. I guess I'll follow up on the Mexican theme here. I'm just curious, since you submitted your MIA back in 2023, you've noted that dialogue has increased recently. I'm curious, have you had any on-site technical reviews with the SEMARNAT groups at all?

Speaker #5: Operator: Congrats, Tony and team. Two questions today. I guess all the follow-up on the Mexican theme here. I'm just curious, since you submitted your MIA back in 2023, you've noted that dialogue has increased recently.

Speaker #5: But I'm curious, have you had any on-site technical reviews with the Cermanak groups at all?

Tony Makuch: Go ahead.

Speaker #3: Go Go ahead.

José Jabalera: Okay. Yeah. We had a visit from officials from the Ministry of Economy because they had a working group together, Ministry of Economy and SEMARNAT and things like that. They designated a group and we gathered a visit from Los Lagunas from the Ministry of Economy. It was a visit to the project to see stakeholders, see the status of the project and how they mainly focus also in the acceptance or how the perception around the project. It was a very good visit. We got visit. We see our neighbors, our heroes, the mayor of the city, people around there. It was a very feedback, positive feedback from all the people around there.

Speaker #6: Okay. Yeah. We had a visit from officials from the Ministry of Economy because they had a working group together, Ministry of Economy and Cermanak and things like that.

Speaker #6: So they designated a group and we got it a visit from Los Lagunas from the Ministry of Economy. It was a visit to the project to see stakeholders, see the status of the project and how's the mainly focus also in the acceptance or how the perception around the project.

Speaker #6: It was a very good visit. We got visited. We saw our neighbors, our hijos, the mayor of the city, and people around there. It was very positive feedback from all the people around.

Speaker #6: And also again, also they were asking when will be the permit granted because the people want to have more opportunities for jobs for development of the city and things around that.

José Jabalera: They were asking when will be the permit granted because the people want to have more opportunities for job, for development of the city and things around that. It was a very positive visit, and we got very good notes and reviews around that. We are pretty sure that will help for our permit.

Speaker #6: So it was a very positive visit. We got a very good notes and reviews around that. So we are pretty sure that that will help for our

Speaker #6: permit. Okay.

Phil Ker: Okay. Yeah, I guess I was just curious if, yeah, there was a follow-up technical review required as part of the, you know, kind of final stamp of approval for the MIA?

Speaker #5: Yeah, I guess I was just curious if there was a follow-up technical review required as part of the kind of final stamp of approval for the MIA.

Tony Makuch: We pretty much passed most of it, I think.

Speaker #3: We pretty much passed most of it, I

Speaker #3: think. No, we're already on

José Jabalera: No, we're already on the permit that we'll need to follow around the MIA. It's done. Well, no visits is more visits. It's already done. We are also submitted a little bit more information, additional information to our permit. The status is on evaluation.

Speaker #6: The permit that we'll need to follow around the MIA is done. Well, no visits is more of a visit; it's already done. We have also submitted a little bit more additional information to our permit.

Speaker #6: So the status is on evaluation. So it's pretty much passed legal and technical review. It's really been maybe some additional things and are just discussions and trading information back and forth in terms of sustainability and other issues, right?

Tony Makuch: It's pretty much past legal and technical review. It's really been, you know, maybe some additional things and, or just discussions and trading information back forth in terms of sustainability, other issues, right?

José Jabalera: Yeah.

Tony Makuch: Sorry, go ahead.

Speaker #3: And And sorry, go ahead.

José Jabalera: With some issues around in, you know, Mexico, new politics and things like that. There are around concerns around water and community resistance and things like that. We already addressed all of those things to go in the origin of the permit.

Speaker #6: So So some meetings around in Mexico and things like that. So there are around concerns or concerns around water and communities and things like that.

Speaker #6: So we already addressed all of those things too. To go on the evaluation of the

Speaker #6: permit. Yeah.

Tony Makuch: Yeah. Feedback basically is they're not asking us for any more questions, any more clarifications. It's just right now we're just, it's just timing, right?

Speaker #3: And then feedback basically is they're not asking us for any more questions or any more clarifications. It's just right now, it's just timing, right?

José Jabalera: Yeah. Correct.

Speaker #6: Yeah.

Phil Ker: Okay. Just one more from me, and then I'll get back in queue. Back to Hoyle Pond. Tony, I think this is something you implemented over at Macassa. Just given the ventilation challenges here, are you evaluating, you know, purchasing electric scoops at all? If so, how soon could you implement those here at site?

Speaker #5: Okay. Just one more from me and then I'll get back in queue. Back to Hoyle Pond. And Tony, I think this is something you implemented over at Macassar was are you and just given the ventilation challenges here, are you evaluating purchasing electric scoops at all?

Speaker #5: And if so, how soon could you implement those here at the site?

Tony Makuch: You wanna answer that, Pierre?

Speaker #3: You want to answer that, Pierre?

Pierre Rocque: Sure. Actually, we have received the electric scoop there. It will be a mixed fleet, same as we have at Borden.

Speaker #6: Sure. So, actually, we have received the electric scoop there. It will be a mixed fleet, same as we have at Borden. We also have an electric.

Tony Makuch: We also have an electric truck. That battery-powered truck, it is just being commissioned now.

Speaker #3: That battery-powered truck is if you did this being commissioned now.

Phil Ker: Okay.

Speaker #3: I mean, that's okay. It helps. That's definitely something that's part of the goal going forward. But we still have to include ventilation and get more air.

Tony Makuch: I mean, that helps. That's definitely something that's part of the goal going forward. We still have to improve ventilation and get more air. As similar to Macassa, you know, if you go back to Macassa for the 18, 19, 20, it was a combination of battery-powered equipment, new vent raises and new shafts at some point in time.

Speaker #3: And so, similar to Macassar, if you go back to Macassar for the 18, 19, and 20, it was a combination of battery-powered equipment, new vent raises, and new shafts at some point in time.

Speaker #5: Great. Okay. Perfect. Congratulations on everything. Hope it continues. Thanks.

Phil Ker: Great. Okay. Perfect. Congratulations on everything. Hope it continues. Thanks, operator.

Speaker #5: operator. Your next question comes

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

Speaker #1: from John Tomasos with johntomasosveryindependentresearch. Your line is open.

John Tumazos: Thank you for your services to the company. I have a few questions on development project magnitudes. For Owl Creek, would a target be maybe 500 tons a day of output in several years, 3.75 grams a ton, or might it be bigger?

Speaker #7: Thank you for your services to the company. I have a few questions on development project magnitudes. For Al Creek, would a target be maybe 500 tons a day of output in several years?

Speaker #7: 3.75 grams per ton, or it might be.

Speaker #7: bigger? I thought it'd be

Tony Makuch: Well, it's probably a little bit early to say. I mean, that's, you know what, like, that's not stretching the, Those numbers there is really not stretching the envelope at all, right? I don't know, Eric, what's your thoughts there?

Speaker #3: It's a little bit early to say. I mean, you know what? That's not stretching those numbers; there is really not stretching the envelope at all, right?

Speaker #3: I don't know, Eric, what's your thoughts there?

Eric Kallio: Well, yeah, something to be still evaluated. I mean, we're seeing a number of different types of zones. You know, some narrower and higher grade.

Speaker #6: Well, yeah, some of these still evaluated. I mean, we've seen it a number of different types of zones. Some narrower and higher grade, and some that are large and large and then maybe bulk mined.

Tony Makuch: Large and-

Eric Kallio: More supports of vein and then can be bulk mined. It's gonna be, you know, some combination of that. You know, we see a lot of mineralization directly under the pit as well. It's divided by historic drilling. I mean, you know, that definitely could be looked at as a fault. We don't know how it all comes together. We need a lot more drilling to just define things.

Speaker #6: So it's going to be some combination of that. We see a lot of mineralization directly under the pit as well. So it's just defined by historic drilling, but I mean, that definitely could be looked at as a bulk.

Speaker #6: But we don't know how it all comes together. We need a lot more drilling to just define.

Speaker #6: things. Yeah.

Tony Makuch: Yeah. In a nutshell, John, it could be 500 tons a day at 3.75 grams per ton. That is probably pretty straightforward. You do have potential for another pit, you know, to extend the pit and mine some more. You do have potential. There is some, you know, There is multiple zones where you and with vein swarms that you might be able to do some large bulk mining, like up to, you know, 8-meter wide stocks or, you know, even, you know, and stuff. There is a lot of things to work at there.

Speaker #3: So, in a nutshell, John, there could be 500 tons a day or 3.75 grams per ton. That's probably pretty straightforward. You do have the potential for another pit to extend the pit and mine some more.

Speaker #3: You do have potential. It is sometimes when you put the multiple zones where you end with rainstorms that you might be able to do some large bulk mining, like up to 8 meters wide stokes or even stuff.

Speaker #3: So there's a lot of things to work at there. So I think what you're talking about there would be probably the smaller end of the how do you want to put the smaller end of the prize?

Tony Makuch: I think what you're talking about there would be probably the smaller end. How do you want to put the smaller end of the price, right? There's good opportunity here in terms of that. We have to drill, and we have to figure it out, right? You have mineralization in both volcanics and sediments there, Eric?

Speaker #3: There's good opportunity there in terms of that. But we have to drill, and we have to figure it out, right? You have mineralization in both volcanics and sediments there.

Speaker #3: There's a good opportunity there in terms of that. But we have to drill, and we have to figure it out, right? You have mineralization in both volcanics and sediments there.

Eric Kallio: Yeah. Both of the lean linger sections are in the volcanics. Also, the pit was a little bit more in sediments, but we're mostly in the volcanics.

Speaker #6: Yeah. Bulk is a new intersection during the volcanics. So the pit was a little bit more in the sediments, but we're mostly in the volcanics.

Speaker #3: Yeah. So you’ve got a lot of... it’s the fact that it crosses stratigraphy, and it ties into a lot of what you see in the camp. Like, it’s a lot of structural things that figure out and maybe help us understand what’s happening.

Tony Makuch: Yeah. You got a lot, I think it's, you know, the fact that it crosses stratigraphy and, you know, it ties into a lot of what you see in the camp. It's a lot of structural things that to figure out on and really understand what's happening. It could be very deep-seated, so, you know, who knows how deep it goes, right?

Speaker #3: But it could be very deep-seated. So who knows how deep it goes?

Speaker #3: right? Second, could you

John Tumazos: Second, could you refresh us as to the infrastructure for the Dome Underground mine restart potential? Is it a 1,000 or 2,000 tons a day project? Is it close to 3 grams or 6 grams per tonne grades, et cetera?

Speaker #7: Refresh us on the infrastructure for the Dome underground mine restart potential. Is there a one or two thousand ton per day project? Is it close to three grams or six grams per historic grades?

Speaker #7: Etc.

Tony Makuch: Sorry, you mean like if could we reestablish the infrastructure underground?

Speaker #3: Sorry, you

Speaker #3: Mean, could we reestablish the infrastructure underground?

John Tumazos: If you restarted the Dome Underground, what might the magnitudes be?

Speaker #7: If you restarted the dome underground, what might the magnitudes be?

Speaker #7: be? I mean, that's an

Tony Makuch: I mean, that's an assessment I think that we have to look at. Like, you do have this resource near the top, right? That's been identified down to about, I think, what, 700 meters, right, Eric?

Speaker #3: Assessment, I think, that we have to look at. You do have this resource near the top, right? That's been identified down to about, I think, what, 700.

Speaker #3: Meters, right? In 2,000 meters. Yeah. The deposit, I mean, the mine itself has gone down 5,000 feet. There are bulk stocks below that which would take it in the past.

Eric Kallio: Yeah, 2,000 feet.

Tony Makuch: Yeah. The deposit, I mean, the mine itself has gone down 5,000 feet. There are bulk stopes below that were taken in the past. There are drill results and, you know, they understand what could be there. You know, you'd have to assess what could happen. It would need, you know, some, maybe some newer kind of infrastructure developed. It could be a combination of pit and underground. We don't know yet.

Speaker #3: There are no results on their understanding of what could be there. And you'd have to assess what could happen if it needed some newer kind of infrastructure development that could be a combination of pit and underground.

Speaker #3: We don't know yet,

Speaker #3: right? Yeah.

Eric Kallio: Yeah. Well, you know, with the mine operations, you know, they had a combination of narrow being high grades and, you know, medium long haul, and they even had large free cave stopes here. You know, because the bigger stopes were already with the lower gold price, were already in the 2 gram per ton kind of range.

Speaker #6: When the mine is operating, the added combination of narrow vein, high grades, and medium long haul, and even had large cave stokes here. But so the bigger stokes were already with the lower gold price were already in the two gram per ton kind of range.

Speaker #6: So if they were mining themselves, pretty much, right? Right. Yeah. So then they were profitable to put in the mill at that time.

Tony Makuch: They were mining themselves.

Eric Kallio: Right.

Tony Makuch: They were mining themselves pretty much, right?

Eric Kallio: Right. Yeah.

Tony Makuch: Yeah.

Eric Kallio: They were profitable to put in the mill at that time.

Speaker #3: So it could be somewhat of a, maybe there's a potential sublevel cave mine here, John, or definitely some bulk.

Tony Makuch: It could be somewhat of a, maybe there's a potential sub-level cave mine here, John, or definitely some bulk. We have to assess it. We do know that there's 11 million ounces near surface. We figure that there's a way to access a substantial portion of that without affecting the mill itself at all. There is the opportunity to look at it underground. It's maybe there's just as many Well, there's as many or more ounces there still than what's been mined historically in the past at Dome.

Speaker #6: We have to assess it. We do know that there's 11 million ounces near surface. We've figured that there's a way to access a substantial portion of that without affecting the mill itself.

Speaker #6: At all. And there is the opportunity to look at it underground. Maybe there are just as many, well, there's as many or more ounces there still than what's been mined historically in the.

Speaker #6: past. If

John Tumazos: Go ahead, please.

Speaker #7: You started a low rate. Go ahead, please.

Tony Makuch: Sorry. Oh, go ahead. Go ahead.

Speaker #6: Sorry. Oh, go ahead.

Speaker #3: Go

Speaker #3: ahead. If you

John Tumazos: If you restarted a low rate at the Dome open pit, late next year or 2027, how many tons a day might that be?

Speaker #7: We restarted a low rate at the Dome open pit, late next year or '27. How many tons a day might that be?

Tony Makuch: Well, we have like a, you have a, you know, a phase I pit shell or some of that. Anywhere I don't know. I mean, it's part of it is our mill capacity and where we are in grade in terms of pushback. That's why we are looking at improving our mill capacity and mill availability, right? You know, I don't think that the, you know, for productivity is not going to be somewhat the limitation is not going to be mine productivity, more mill productivity at this point in time over the next two or three years.

Speaker #3: Well, we have a Phase One pit shell or something like that. Anywhere, I don't know. I mean, part of it is our mill capacity and where we are in grade in terms of which is above.

Speaker #3: That's why we are looking at improving our mill capacity and mill availability, right? I don't think that the productivity is not going to be somewhat the limitation is not going to be mine productivity more mill productivity at this point in time over the next two or three years.

John Tumazos: With all the drilling-

Speaker #7: With all the

Speaker #7: Drilling, if we were to put.

Tony Makuch: Sorry. It's, you know, if we were to put something in place there, I mean, you look at it, I mean, it operated at, you know, 8,000 or 10,000 tons a day in the past. You know, we're developing Pamour to run at those type of levels, and you can go up to about 12,000 tons a day. You know, over time, you can think of those levels or even double that. It's a lot of work to do. It's early stage, John.

Speaker #3: Something in place there. I mean, you look at it. I mean, it operated at 8,000 or 10,000 tons a day in order to run at those types of levels.

Speaker #3: And if the past where we're developing PAM day, over time, you can think of those levels or even double that. It's a lot of work to do.

Speaker #3: It's early stage, John, but you can see based on the geography and the size of the pit, and the volume there, it's not unrealistic to mine this thing at, think about a six to seven to one strip ratio. We're doing 60,000 to 65,000 tons per day at Pamore.

Tony Makuch: You know, you can see based on the geography of the and the size of the pit and the volume there, it's not unrealistic to mine this thing at, you know, think about a 6, 7 to 1 strip ratio. We're doing 60,000, 65,000 tons per day at Pamour, ore and waste. You can do that and then double that, and it'd give you a sense of what your productivity can be.

Speaker #3: Ore and waste, you can do that, and then double that, and then give you a sense of what your productivity could be.

Speaker #7: With all the drilling at Hoyal Pond, does the likelihood increase that the Hoyal Pond output will be higher than the technical study back in January?

John Tumazos: With all the drilling at Hoyle Pond, does the likelihood increase that the Hoyle Pond output will be higher than the technical study back in January?

Tony Makuch: Go ahead, Eric.

Speaker #3: Go ahead, Mark.

Eric Kallio: The drilling that we're doing right now probably doesn't affect the production rate so much because we're drilling near the lower limit.

Speaker #6: It's really that what we're doing right now probably doesn't affect the production rate so much because we're drilling near the lower limit of the deeper.

Tony Makuch: Yeah

Eric Kallio: you know, deeper. We're probably about 300 meters below.

Speaker #6: We're probably about

Speaker #6: two to three hundred meters below.

Tony Makuch: A lot of the initial drilling at Hoyle Pond, some of the work that. First off, you're trying to do work to support what's in the current technical report, right? To upgrade the resource and so you get, you have more measured and indicated, right? That's part of it. There is work looking for new zones and extensions. We are doing, investigating even going up higher into the mine in terms of, you know, finding new areas that we could, you know, that could have either been left behind 'cause it's too narrow or not quite the same grade as what's been in the past, the cut off grade. There's some opportunity there.

Speaker #3: A lot of the initial drilling at Hoyal Pond, some of the work first off, you're trying to do work to support what's in the current technical report, right?

Speaker #3: To upgrade the resource so you can have more measured and indicated, right? So that's part of it. There is work looking for new zones and extensions.

Speaker #3: We are investigating and even going higher into the mine in terms of finding new areas that could have either been left behind because they're too narrow or not quite the same grade as what had been in the past for cutoff grade.

Speaker #3: So there's some opportunity there. But the other opportunity is, like we're talking about towards Owl Creek, and there are some other zones up higher that we're potentially both minable, etc., that we can assess for Hoyal Pond.

Tony Makuch: The other opportunity is like we're talking about towards Owl Creek, and there's some other zones up higher that we're potentially bulk mineable, et cetera, that we can assess for Oro Pond. It's gonna be a combination of I think we, you know, we're drilling right now. A big part of the drilling program is really to support what's in the technical report. That's number 1. Then you do have the program for assessing the upper levels and some, you know, trying to bring some old historic areas back into production. Then there is the program to look for new deposits so that we can use it to bring, say, Oro Pond back up to the productivity that it used to be.

Speaker #3: So, it could be a combination of, I think. Right now, we're drilling. A big part of the drilling program is really to support what's in the technical report.

Speaker #3: That's number one. And then you do have a program for assessing the upper levels and some trying to bring some old historic areas back into production.

Speaker #3: And then there is the program to look for new deposits there that can be used to bring the state oil pond back up to the productivity that it used to be.

Speaker #3: Does that serve to you? Yeah. I would say, John, the upside is going to come from the upper area in the short term. This is something that previous operators never really looked at.

Tony Makuch: Is that fair, Pierre and Duncan?

Pierre Rocque: Yeah. I would say, John, the upside is going to come from the upper area in the short term. This is something that previous operators never really looked at. We have started a program this year to look at that, do some development, do additional drilling, like Eric is talking about, so that we're confident that this will bear fruits for our 2026 budget year and beyond.

Speaker #3: So, we have started a program this year to look at that, do some development, and do additional drilling, like Eric is talking about, so that we're confident this will bear fruits for our 2026 budget year and beyond.

Speaker #6: And maybe with the current resource that we do have at Hoyal Pond, the limitation isn't necessarily the size of the resource. The limitation right now is ventilation and backfill, which are programs that appear, and Duncan and everybody are working towards.

Tony Makuch: Well, maybe with the current resource that we do have at Hoyle Pond, the limitation isn't necessarily the size of the resource. The limitation right now is ventilation and backfill, which are programs that Pierre and Duncan and just everybody's working towards. That's part of our investment back into Hoyle Pond. We have more air there.

Speaker #6: That's part of our investment back into Hoyal Pond. We have more air there.

Speaker #6: That's part of our investment back into Hoyal Pond. We have more air there.

John Tumazos: If I could.

Speaker #7: could.

Tony Makuch: There's more shaft productivity, there's more trucking productivity that can be unlocked if we had more air in the net. Right? The shaft's not full. The hoist capacity is being used at maybe 30% or 50% max. Right?

Speaker #6: There's more trucking if there's more shaft productivity that can be unlocked if we had more air. And the shaft's not full. It's not the shaft; the hoist capacity is being used maybe 30% or 50% max.

Speaker #7: If I could look ahead to '28, after Pamore has been dewatered, what was the past mining rate at the Pamore underground, and what were the...

Speaker #7: If I could look ahead to '28, after Pamore has been dewatered, what was the past mining rate at the Pamore underground, and what were the grades?

John Tumazos: If I could look ahead to 2028, after Pamour has been dewatered, what was the past mining rate at the Pamour underground, and what were the grades?

Tony Makuch: Historically, Pamour ran about 3,000 tons a day, about 3 gram per ton. Well, both of you worked there, right? Is that historic Pamour?

Speaker #6: Historically, Pamore ran about 3,000 tons a day, with an average of about 3 grams per ton. But historically, Pamore averages 3 grams per ton.

Pierre Rocque: 3 grams a ton.

Tony Makuch: Yeah. That was historic Pamour. That was the Pamour Mill, right?

Speaker #3: Yeah. That was historic Pamore. That was the Pamore mill.

Speaker #3: Right? Yeah, 3,000 tons a day and about 3.

Pierre Rocque: Yeah, 3,000 tons a day.

Speaker #6: 3,000 tons a day.

Tony Makuch: 3,000 tons a day and about 3 grams per ton. Down to about 2,600 feet, 2,900 feet below surface.

Speaker #3: grams per ton, down to about 2,600 feet, 2,900 feet below surface.

Pierre Rocque: Twenty-eight.

Speaker #6: 28.

Tony Makuch: Twenty-eight.

Pierre Rocque: There you go.

Speaker #7: Well, that's something to look forward to when it's dewatered. Thank you for your patience. I apologize for asking questions where you don't have the data.

John Tumazos: Well, that's something to look forward to when it's dewatered. Thank you for your patience. I apologize for asking questions where you don't have the data yet.

Speaker #7: Yet. No, but those are good.

Tony Makuch: No, those are good questions, John, and they're good, they, you know, they're good, how do you want to put it? Leading questions. They, in terms of recognizing the value, unlockable value in these assets, right? There's lots of opportunity. We just have to, you know, we gotta move forward. We got to prioritize what we can do, right? You know, we, you know, we want to do them all, but we recognize that we have to do them in a particular order to get us in the right spot. Every one of these are opportunities and things that are gonna happen, you know, over the next few years.

Speaker #3: Questions, John. And they're good. They're good. How do you want to put leading questions? They are in terms of recognizing the value of unlockable value in these assets, right?

Speaker #3: There's lots of opportunity. We just have to move forward. But we have to prioritize what we can do, right? Because we want to do them all, but we recognize that we have to do them in a particular order to get us in the right spot.

Speaker #3: But every one of these are opportunities and things that are going to happen over the next few.

Speaker #3: Years. I want to get Susan tickets for

John Tumazos: I wanna get season tickets for the new arena when you get it built.

Speaker #7: the new arena when you get it built.

Tony Makuch: Sounds good.

Speaker #3: Sounds good. Maybe by then we'll get there. Make beliefs to play there, and maybe they'll win a game.

John Tumazos: Thank you.

Tony Makuch: Maybe by then we will get the Maple Leafs to play there, and maybe they'll win a game.

Speaker #1: And with no further questions in queue, I'd like to turn the conference back over to Mark Utting for closing.

Operator: With no further questions in queue, I'd like to turn the conference back over to Mark Utting for closing remarks.

Mark Utting: Well, thanks very much, operator. Again, thanks everyone for taking part in the call today. As you heard, we had a very solid quarter, both from an operating and financial standpoint. Key theme being the ability of the company to generate cash flow and preserve cash position. We significantly built our balance sheet strength during the quarter, which put us in a very good position entering Q4. As you heard, we certainly expect to finish the year strong. We look forward to updating you again on our year-end call early in 2026. Again, thank you for joining.

Speaker #6: Well, thanks very much, operator. And again, thanks to everyone for taking part in the call today. As you heard, we had a very solid quarter, both from an operating and financial standpoint.

Speaker #6: Keep being affiliated company to generate cash flow and build its cash position. Significantly built our balancing strength during the quarter. Which put us in a very good position entering Q4.

Speaker #6: And as you heard, we certainly expect to finish the year strong. We look forward to updating you again on our year-end call early in 2026.

Speaker #6: And again, thank you

Speaker #6: again. This

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