Q4 2025 Americas Silver Corp Earnings Call

Operator 2: Hello, and welcome to the Americas Gold and Silver Q4 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I'll now turn the conference over to Paul Huet, Chairman and CEO. Please go ahead.

Speaker #2: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #2: If you would like to withdraw your question, simply press *1 again. I'll now turn the conference over to Paul Huet, Chairman and CEO.

Speaker #2: Please go ahead. Thank you, and good morning, everyone. I'd like to welcome you to our fourth quarter year-end 2025 conference call. This call will be recorded and available to watch on our website's events page later today.

Paul Huet: Thank you, and good morning, everyone. I'd like to welcome you to our Q4 year-end 2025 Conference Call. This call will be recorded and available to watch on our website events page later today. Please note that all dollar figures will be expressed in US dollars throughout this call unless otherwise noted. We will also be referencing a slide deck that will be shared during the webcast for this call. Joining me today are Warren Varga, our Chief Financial Officer, who will walk through our Q4 and full year financials, and Oliver Turner, our Executive Vice President of Corporate Development. I'll start off with a few key updates before turning it over to Warren. Before I begin, I would like to remind you to review our cautionary statements regarding forward-looking information and non-IFRS measures.

Speaker #2: Please note that all dollar figures will be expressed in US dollars throughout this call, unless otherwise noted. We will also be referencing a slide deck that will be shared during the webcast for this call.

Speaker #2: Joining me today are Warren Varga, our Chief Financial Officer, who will walk through our fourth quarter and full-year financials, and Oliver Turner, our Executive Vice President of Corporate Development.

Speaker #2: I'll start off with a few key updates before turning it over to Warren. Before I begin, I would like to remind you to review our cautionary statements regarding forward-looking information and non-IFRS measures.

Speaker #2: These statements are included in our year-end MDMA news release and in the presentation slides. Let me start by saying how excited I am about the massive transformation we have delivered at Americas Gold & Silver throughout 2025 and into early 2026.

Paul Huet: These statements are included in our year-end MD&A news release and in the presentation slides. Let me start by saying how excited I am about the massive transformation we have delivered at Americas Gold and Silver throughout 2025 and into early 2026. Before I outline our progress at the mines, I would like to announce a very significant milestone for our company. Just a few weeks ago, our Galena team achieved a major safety milestone. We have completed one full year in over 550,000 man-hours of work. During that year, we had no lost time accident. Nothing is more important than the safety of our miners, and I would like to congratulate the team on the culture around safety we are building at Galena and in Mexico as well. Well done, team.

Speaker #2: But before I outline our progress at the mines, I would like to announce a very significant milestone for our company. Just a few weeks ago, our Galena team achieved a major safety milestone.

Speaker #2: We have completed one full year, with over 550,000 man-hours of work during that year. We had no lost-time accident. Nothing is more important than the safety of our miners, and I would like to congratulate the team on the culture around safety we are building at Galena and in Mexico as well.

Speaker #2: Well done, team. 2025 was a year of transformation for our business, and we delivered exactly that. In 2025, we achieved a massive 52% increase in attributable silver production, up to 2.65 million ounces at Galena. This was accomplished despite a total of 20-plus days of planned shutdowns for significant upgrades to both Number 3 and Core Shafts.

Paul Huet: 2025 was a year of transformation for our business, and we delivered exactly that. In 2025, we achieved a massive 52% increase in attributable silver production, up to 2.65 million ounces. At Galena, this was accomplished despite a total of 20+ days of planned shutdowns for significant upgrades to both number 3 and Coeur shafts, in addition to many other de-risking optimization projects that I will discuss later on this call. A massive increase in production while we're shutting down and growing the operation is quite impressive. 2025 was also highlighted by a production record year of 1.2 million ounces set at Cosalá, where our team delivered the highest annual and quarterly silver output in operation in history while successfully ramping up the EC-120 to commercial production.

Speaker #2: In addition to many other de-risking optimization projects that I will discuss later on this call. So, a massive increase in production while we're shutting down and growing the operations is quite impressive.

Speaker #2: 2025 was also highlighted by a production record year of 1.2 million ounces set at Coastala, where our team delivered the highest annual and quarterly silver output in the operation’s history, while successfully ramping up the EC120 to commercial production.

Speaker #2: This is another remarkable milestone and a testament to the exceptional execution by our entire team at Coastala. Congratulations to everyone at the operation for achieving these record-breaking numbers while setting the table for a very strong future.

Paul Huet: Another remarkable milestone and a testament to the exceptional execution by our entire team at Cosalá. Congratulations to everyone at the operation for achieving these record-breaking numbers while setting the table for a very strong future. At Galena, consistent productivity gains came alongside our focus on major capital projects and the integration of the newly acquired Crescent Mine. I'm proud of our team for advancing key operational initiatives, including the introduction of long-hole stoping, the expansion of our underground mining fleet, the upgrades to number three and core shaft, all of which position us to support increased development and accelerate mining rates moving forward. Over the course of 2025, we have made major progress in mining infrastructure and in development at Galena. Our transition to long-hole stoping is going exceptionally well.

Speaker #2: At Galena, consistent productivity gains came alongside our focus on major capital projects and the integration of the newly acquired Crescent Mine. I'm proud of our team for advancing key operational initiatives, including the introduction of long-hole scoping.

Speaker #2: The expansion of our underground mining fleet, and the upgrades to Number 3 and Core shafts, all position us to support increased development and accelerate mining rates moving forward.

Speaker #2: Over the course of 2025, we have made major progress in mining, infrastructure, and in development at Galena. Our transition to long-hole stoping is going exceptionally well.

Speaker #2: To date, we have mined 7,000 to 9,000 long-hole scope panels designed at specific widths, while three new long-hole scopes are currently being developed at the moment.

Paul Huet: To date, we have mined 7 to 9 long-hole stope panels designed at specific widths, while 3 new long-hole stopes are currently being developed at the moment. I think it is very worthwhile noting that in 2024 we had zero long-hole stopes. This is an extremely exceptional step in the right direction and where we're wanting to head at Galena. In Q4 of 2025, we accelerated upgrades by installing the new 2,250-horsepower motor and a redundant motor at the core shaft, further de-risking the operation and supporting our growth plans. Phase two of the number 3 shaft upgrades remain on track for completion in Q2 of 2026. With the arrival of all the parts coming in this month, in March and early April, needed to complete the upgrades on the braking systems and the Lilly controllers.

Speaker #2: I think it is very worthwhile noting that in 2024, we had zero long-hole scopes. So this is an extremely exceptional step in the right direction and where we're wanting to head at Galena.

Speaker #2: In Q4 of 2025, we accelerated upgrades by installing the new 2,250-horsepower motor and a redundant motor at the core shaft, further de-risking the operation and supporting our growth plans.

Speaker #2: Phase 2 of the Number 3 shaft upgrades remains on track for completion in Q2 of 2026. With the arrival of all the parts coming in this month, in March, and early April, needed to complete the upgrades on the braking systems and the lillies.

Speaker #2: This will bring the total hoisting capacity to over 100 tons per hour, representing a 150% increase compared to the 40 tons per hour achieved in 2024 when we started this project.

Paul Huet: This will bring the total hoisting capacity to over 100 tons per hour, representing a 160% increase compared to the 40 tons per hour achieved in 2024 when we started this project. We have all seen major productivity improvements. In 2025, we had about a 200% improvement on mucking operations. We're now seeing around 200 tons of ore moved per shift, up from around 50 tons of ore when we were doing conventional mining. This is through the use of remote control mucking. Other significant achievements at Galena included a new Alimak ventilation raise, new declines in place that are de-bottlenecking mining areas. We made major investments into our underground mining fleet, replacing and upgrading a large portion of our gear with more expected in 2026. Lastly, we are bringing Galena into the modern era of mining.

Speaker #2: We have all seen major productivity improvements. In '25, we had about a 200% improvement on mucking operations. We're now seeing around 200 tons of ore moved per ship, up from around 50 tons of ore when we were doing conventional mining.

Speaker #2: This is through the use of remote control mucking. Other significant achievements at Galena included a new Alamac ventilation raise, new declines in place that are debottlenecking mining areas, and we made major investments into our underground mining fleet, replacing and upgrading a large portion of our gear with more expected in 2026.

Speaker #2: Lastly, we are bringing Galena into the modern era of mining. We are currently installing a modern fiber optic communication system that will allow us to remotely monitor and optimize pieces of equipment in the mine.

Paul Huet: We are currently installing a modern fiber optic communication that will allow us to remotely monitor and optimize pieces of equipment in the mine. In just one year, we have completed a large number of projects and upgrades to the mine, and we will continue this strong progress in 2026. At Cosalá, we're off to an extremely fast start there as well, with key infrastructure and equipment upgrades in place within a few short weeks of closing the acquisition in December. Firstly, we added line power to all three adits and are actively setting up the operation to deliver ore to the Galena mill later this year after commissioning the secondary entrances. Our updated mineral resource estimate has shown a larger and higher-grade ore body at Galena, a tremendous result in our first year of drilling.

Speaker #2: In just one year, we have completed a large number of projects and upgrades to the mine, and we will continue this strong progress in 2026.

Speaker #2: At Crescent, we're off to extremely fast starts there as well, with key infrastructure and equipment upgrades in place within a few short weeks of closing the acquisition in December.

Speaker #2: Firstly, we added a line power to all three adders, and are actively setting up the operation to deliver ore to the Galena mill later this year after commissioning the secondary egresses.

Speaker #2: Our updated mineral resource estimate has shown a larger and higher-grade ore body at Galena. A tremendous result in our first year of drilling. Even when excluding the historical resource at Crescent, our 2P is over 25 million ounces, M&I over 150 million ounces, and inferred is over 133 million ounces of silver.

Paul Huet: Even when excluding the historical resource at Crescent, our 2P is over 25 million ounces, M&I over 150 million ounces, and inferred is over 133 million ounces of silver. I just want to remind folks this is not silver equivalent. This updated resource gives us even greater confidence in the quality and longevity of our assets. I also want to note that our operations in the Silver Valley are still among some of the shallowest, and we know there is more silver to be found here. We are quite excited to continue drilling and exploring these previously underexplored properties, both in Mexico and in Idaho. As a company, we recently launched the largest exploration program in history, with approximately 64,000 meters of drilling planned across the Galena complex, including Crescent and Coeur.

Speaker #2: And I just want to remind folks, this is not silver equivalent. This updated resource gives us even greater confidence in the quality and longevity of our assets.

Speaker #2: I also want to note that our operations in the Silver Valley are still among some of the shallowest and we know there is more silver to be found here.

Speaker #2: We are quite excited to continue drilling and exploring these previously underexplored properties, both in Mexico and in Idaho. As a company, we recently launched the largest exploration program in our history.

Speaker #2: With approximately 64,000 meters of drilling planned across the Galena complex, including Crescent and Coastala, this follows the discovery of 10 new high-grade silver, copper, antimony, and silver lead beams at Galena.

Paul Huet: This follows the discovery of 10 new high-grade silver, copper, antimony, and silver-lead veins at Galena, highlighted by intercepts of approximately 4,900 g/t silver, 4% copper over widths of 1.3 m and 2,600 g/t silver and 1.4% antimony over 0.7 m wide.

Speaker #2: Highlighted by intercepts of approximately 4,900 grams per ton silver, 4% copper over widths of 1.3 meters, and 2,600 grams per ton silver and 1.4% antimony over 0.7 meters wide.

Speaker #2: The continued discovery of these high-grade beams, like 34 Beam, 149 Beam, and the newly discovered 520 Beam announced today, are strong examples of the tremendous potential of Galena to continue to grow with high-grade discoveries—something the mine has been doing consistently for well over 100 years.

Paul Huet: The continued discovery of these high-grade veins, like 34 Vein, 149 Vein, and the newly discovered 520 Vein announced today, are strong examples of the tremendous potential of Galena to continue to grow with high-grade discoveries, something the mine has been doing consistently for well over 100 years. In February, we announced a landmark joint venture with United States Antimony to build and operate a new antimony facility at the Galena Complex, creating the first fully US mine to finish antimony solution and creating additional downstream value for our shareholders. Our full-year antimony and copper byproduct production from the Galena Complex further demonstrates the value potential of our unique position as the largest active US antimony miner.

Speaker #2: This February, we announced a landmark joint venture with United States Antimony to build and operate a new antimony facility at the Galena complex. Creating the first fully US mine-to-finish antimony solution and creating additional downstream value for our shareholders.

Speaker #2: Our full-year antimony and copper by-product production from the Galena Complex further demonstrates the value potential of our unique position as the largest active U.S. antimony miner.

Speaker #2: Beginning January 1, 2026, we finally started receiving revenue from these byproducts under the new offtake agreement negotiated with Ocean Partners and Teck Resources, as earlier announced in June of 2025.

Paul Huet: Beginning 1 January 2026, we finally started receiving revenue from these byproducts under the new offtake agreement negotiated with Ocean Partners and Teck Resources, as earlier announced in June 2025. Looking ahead, we're extremely excited about the opportunity in antimony production as we continue test work initiatives and evaluate numerous pathways to unlock the substantial byproduct value of antimony at the Galena Complex. Moving forward, Americas remains squarely focused on playing a leading role in strengthening US critical minerals supply chains. Finally, we introduced our formal 2026 production cost and capital guidance. For the full year, we expect consolidated silver to be 3.2 to 3.6 million ounces at an AISC of $30 to $35 per ounce sold. This is yet another 30 percent increased production over last year.

Speaker #2: Looking ahead, we're extremely excited about the opportunity in antimony production as we continue test work initiatives and evaluate numerous pathways to unlock the substantial byproduct value of antimony at the Galena Complex.

Speaker #2: Moving forward, America's remains squarely focused on playing a leading role in strengthening US critical minerals supply chains. Finally, we've introduced our formal 2026 production cost and capital guidance.

Speaker #2: For the full year, we expect consolidated silver to be 3.2 to 3.6 million ounces at an AISC of $30 to $35 per ounce sold.

Speaker #2: This is yet another 30% increase in production over last year. The last year was 50%, another 30%, and as we continue along that trend, we're heading towards over that 5 million.

Paul Huet: Last year, 50%, another 30% as we continue along that trend that we're heading towards over that 5 million. It keeps us well on track and on course to return Galena back to those historical production and record levels. These are big, big step-ups year after year. Our cost guidance reflects the deliberate investments in advancing operational improvements at Galena and Crescent, including the completion and commissioning of the new surface paste fill plant, as we've been discussing for some time. As well as the planned transition in our mining methods over the next two years to getting 60% to 70% long-hole stoping and a mixture of 30% underhand cut and fill. These changes will drive higher productivity, lower costs over the medium and short term time.

Speaker #2: It keeps us well on track and on course to return Galena back to those historical production and record levels these are big, big step-ups year after year.

Speaker #2: Our cost guidance reflects the deliberate investments in advancing operational improvements at Galena and Crescent, including the completion and commissioning of the new surface pay-sal plant, as we've been discussing for some time.

Speaker #2: As well as the planned transition in our mining methods over the next two years to getting 60% to 70% long-haul stoping, and a mixture of 30% underhand cut and fill.

Speaker #2: These changes will drive higher productivity and lower costs over the short and medium term. Consolidated capital expenditures are targeted between $90 million and $120 million.

Paul Huet: Consolidated capital expenditures are targeted between $90 and $120 million, including Crescent development, while exploration capital is targeted between $15 and $20 million. 2026 will be another pivotal year for infrastructure upgrades that Galena Complex so desperately needs, building directly on the strong foundation we've established in 2025. Overall, I'm extremely pleased with the progress we have made over the last year, which has laid a strong foundation for a continued growth of 2026 and beyond across both Idaho and Mexico. I'll now turn the call over to Warren for our financial highlights.

Speaker #2: Including Crescent development, while exploration capital is targeted between $15 to $20 million. 2026 will be another pivotal year for infrastructure upgrades that Galena and our complex so desperately need.

Speaker #2: Building directly on the strong foundation we've established in 2025, overall, I'm extremely pleased with the progress we have made over the last year, which has laid a strong foundation for continued growth in 2026 and beyond across both Idaho and Mexico.

Speaker #2: I'll now turn the call over to Warren for a financial highlight. Thank you, Paul. This morning, we released our Q4 and full-year 2025 financial results.

Warren Varga: Thank you, Paul. This morning, we released our Q4 and full year 2025 financial results. Our audited financial statements and MD&A for the 12 months ended December 31, 2025, are available on our website and under Americas Gold and Silver's profile on both SEDAR+ and EDGAR. For the full year, our consolidated revenue increased to $118 million, up 18% from $100 million in 2024, driven by higher silver production and strong realized prices. We achieved consolidated attributable silver production of 2.65 million ounces with approximately 3.4 million ounces of silver equivalent, including 9.3 million pounds of lead, and 2 million pounds of copper, in addition to 561,000 pounds of antimony.

Speaker #2: Our audited financial statements and MD&A for the 12 months ended December 31, 2025, are available on our website and under Americas Gold & Silver's profile on both SEDAR+ and EDGAR.

Speaker #2: For the full year, our consolidated revenue increased to $118 million, up 18% from $100 million in 2024, driven by higher silver production and strong realized prices.

Speaker #2: We achieved consolidated attributable silver production of 2.65 million ounces, with approximately 3.4 million ounces of silver equivalent, including 9.3 million pounds of lead and 2 million pounds of copper, in addition to 561,000 pounds of antimony.

Speaker #2: As for our cost structure, cost of sales per silver equivalent ounce and cash costs in all-in sustaining costs per silver ounce produced averaged $25, $26, and $33, respectively.

Warren Varga: As for our cost structure, cost of sales per silver equivalent ounce and cash costs and all-in sustaining cost per silver ounce produced averaged $25, $26, and $33 respectively. On the earnings front, we reported a net loss of $87 million or $0.33 per share in 2025, compared to a net loss of $49 million or $0.46 per share in 2024. Our adjusted earnings loss for the year was $35 million or $0.13 per share, compared to $34 million or $0.32 per share in 2024. Adjusted EBITDA for 2025 was a loss of $4 million or $0.02 per share, compared to $1.5 million or $0.01 per share in 2024.

Speaker #2: On their earnings front, we reported a net loss of $87 million, or $0.33 per share, in 2025 compared to a net loss of $49 million, or $0.46 per share, in 2024.

Speaker #2: Our adjusted earnings loss for the year was $35 million, or $0.13 per share, compared to $34 million, or $0.32 per share, in 2024.

Speaker #2: Adjusted EBITDA for 2025 was a loss of $4 million, or $0.02 per share, compared to $1.5 million, or $0.01 per share, in 2024. We remain optimistic about the future, with silver production expected to grow as we advance the restart of the Crescent mine and continue optimizing the EC120 mine at our coastal operations.

Warren Varga: We remain optimistic about the future, with silver production expected to grow as we advance the restart of the Crescent Mine and continuing optimizing the EC-120 mine at our Cosalá operations. To support this growth, we closed a $133 million bought deal financing in December 2025, which also funded the cash portion of the Crescent acquisition. With that, I'll now turn the call over to Oliver Turner.

Speaker #2: To support this growth, we closed a $133 million bought deal financing in December 2025, which also funded the cash portion of the Crescent acquisition. With that, I'll now turn the call over to Oliver Turner.

Speaker #3: Thank you, Warren, and good morning, everyone. The past year has been an incredibly active and productive period for the entire Americas team. From completing the Crescent acquisition, delivering strong exploration successes, announcing the U.S. antimony joint venture for the antimony processing facility in Idaho, and delivering strong operational results across all sites, we've made significant progress in many different areas.

Oliver Turner: Thank you, Warren, and good morning, everyone. The past year has been an incredibly active and productive period for the entire Americas team. From completing the Crescent acquisition, delivering strong exploration successes, announcing the US antimony joint venture for the antimony processing facility in Idaho, and delivering strong operational results across all sites, we've made significant progress in many different areas. On the market side, we've continued to see strong institutional support and interest. The tightly held ownership of our shares has increased from just 7% in late 2024 to over 65% presently. Certainly a strong signal of market support. This level of alignment continues to be a key differentiator for Americas, and over the past year alone, our team has conducted more than 400 institutional investor meetings.

Speaker #3: On the market side, we've continued to see strong institutional support and interest. The tightly held ownership of our shares has increased from just 7% in late 2024 to over 65% presently.

Speaker #3: Certainly, a strong signal of market support. This level of alignment continues to be a key differentiator for Americas, and over the past year alone, our team has conducted more than 400 institutional investor meetings.

Speaker #3: We've also seen meaningful index inclusions, with Americas being added to VanEck's GDXJ and SIL ETFs, along with a significant increase in the SILJ ETF shareholding.

Oliver Turner: We've also seen meaningful index inclusions, with Americas being added to the VanEck GDXJ and SIL ETFs, along with a significant increase in the SILJ ETF shareholding. Over the course of the year, we've also added five new analysts covering our name, and we greatly appreciate their support, bringing our total coverage universe to seven research analysts. With increased generalist interest, we've also seen increased tier one media interest, as highlighted by recent interviews with both Fox Business and Bloomberg following our U.S. Antimony joint venture announcement. Since the beginning of our transformation in late 2024, USAS shares have significantly outperformed the silver peer group, yet we still trade at significant discount to NAV compared to our peers, providing a rare combination of both silver growth and value in a single stock.

Speaker #3: Over the course of the year, we've also added five new analysts covering our name, and we greatly appreciate their support—bringing our total coverage universe to seven research analysts.

Speaker #3: With increased generalist interest, we've also seen increased Tier One media interest, as highlighted by recent interviews with both Fox Business and Bloomberg following our US antimony joint venture announcement.

Speaker #3: Since the beginning of our transformation in late 2024, USA shares have significantly outperformed the silver peer group, yet we still trade at a significant discount to NAV compared to our peers, providing a rare combination of both silver growth and value in a single stock.

Speaker #3: With nearly 80% of revenue exposed to silver, a growing antimony revenue stream, made new exploration discoveries, and a strong growth profile ahead of us, we believe the market is yet to fully recognize the value we are building, which makes an exciting opportunity for investors interested in investing in silver today.

Oliver Turner: With nearly 80% of revenue exposed to silver, a growing antimony revenue stream, major new exploration discoveries, and a strong growth profile ahead of us, we believe the market is yet to fully recognize the value we are building, which makes an exciting opportunity for investors interested in investing in silver today. Looking ahead, our 2026 calendar is filled with conferences, media engagements, and meetings week to week, and we look forward to keeping the market and our shareholders updated as we execute on our strategy to scale a premier Americas-focused silver and critical metals producer. With that, I'll turn the call back over to the operator for questions.

Speaker #3: Looking ahead, our 2026 calendar is filled with. Conferences, media engagements, and meetings week to week, and we look forward to keeping the market and our shareholders updated as we execute on our strategy to scale a premier America's focus silver and critical metals producer.

Speaker #3: With that, I'll turn the call back over to the operator for questions.

Operator 2: Thank you. If you have a question, please press star one on your telephone keypad to raise your hand and join the queue. If you wish to remove yourself from the queue, simply press star one again. Your first question comes from the line of Justin Chan of SCP Resource Finance. Your line is open.

Speaker #1: Thank you. If you have a question, please press star one (*) on your telephone keypad to raise your hand and join the queue. If you wish to remove yourself from the queue, simply press star one (*) again.

Speaker #1: Your first question comes from the line of Justin Chan of SCP Resource Finance. Your line is open.

Justin Chan: Hi, guys. Thanks for the conference and congrats on a transformational year. My first question is just on your production guidance for the year. Could you give us maybe a bit more breakdown between what you think the ranges are for Cosalá and Galena? Any guidance on sort of how to model that on a, you know, production ramping up basis as you commission the shaft, paste plant, et cetera.

Speaker #4: Hi, guys. Thanks for the conference, and congrats on our transformational year. My first question is just on your production guidance for the year. Could you give us maybe a bit more breakdown between what you think the ranges are for Coastal and Galena, and then any guidance on sort of how to model that on a production ramping-up basis as you commission the shafts to pace plan, etc.?

Paul Huet: Sorry, Justin. I think I heard the question here. It's Paul here. I think the breakdown between the guidance between Mexico and Idaho, and then the update on the shaft. Was that the question? I think that's it. First off-

Speaker #5: Sorry, Justin. I think I heard the question here. It's Paul here. I think the breakup between the guidance between Mexico and Idaho and then the update on the shaft, was that the question?

Speaker #5: I think that's it.

Justin Chan: Yeah. Basically, the breakdown between the assets and then the cadence.

Speaker #4: First off, basically, the breakdown between the assets and then the cadence.

Paul Huet: Yeah. Look, we're gonna be in the ranges, obviously. This year's another huge step up for us, right? As we're transitioning into long-hole, we did 9 stopes, 7 to 9 stopes last year, depending on how you measure the plans. We're gonna be stepping that up again this year. Looking at 2026, we're looking at a range of 2.2 to 2.6 million out of Galena, and then the rest is coming out of Mexico. Again, Mexico is gonna have another big year as we step up, about 1.2 to 1.4. Bringing us into that guidance that we put out forward. With the projects we've got for the shaft, those are big steps. We've got 2 big projects we've got to finish up this year.

Speaker #5: Yeah, so look, we're going to be in their ranges, obviously. So, this year is another huge step up for us, right, as we're transitioning into long haul.

Speaker #5: We did nine scopes, seven to nine scopes last year depending on how you measure the panels. We're going to be stepping that up again this year.

Speaker #5: So looking at 2026, we're looking at a range of 2.2 to 2.6 million out of Galena. And then the rest is coming out of Mexico again.

Speaker #5: Mexico is going to have another big year as we step up at 1.2 to 1.4. So, bringing us into that guidance that we put out forward.

Speaker #5: With the projects we've got for the shaft, those are big steps. We've got two big projects we've got to finish up this year. And that's in order to sustain the long haul and fill the stoves properly, we've got to get that batch plant in place.

Paul Huet: That's in order to sustain the long haul and fill the stopes properly. We've got to get that paste plant in place. That's been one of our projects from day one, and we're expecting to have that done this year, which is another big milestone. With respect to the shaft, the parts are almost on site. Actually, half of them are on site. Some of the parts are on site. We want to make sure everything is on site, so we can make sure that we do a scheduled planned outage. We'll be planning to be down for 12 days as we upgrade the shaft.

Speaker #5: And that's been one of our projects from day one, and we're expecting to have that done this year, which is another big milestone with respect to the shaft.

Speaker #5: The parts are almost on site. Actually, half of them are on site. Some of the parts are on site. We're going to be—we have a—we want to make sure everything is on site so we can make sure that we do a scheduled, planned outage.

Speaker #5: We'll be planning to be down for 12 days as we upgrade the shaft. These are things that have to get done in order for us to maintain the new product, the new skipping rates that we want to do at 100 tons per hour.

Paul Huet: These are things that have to get done in order for us to maintain the new product, the new shipping rates that we want to do at that 100 tons per hour. April, those both will be done.

Speaker #5: So, April, those both will be—those will be done.

Justin Chan: Gotcha. Thanks. Just to reiterate, the shaft upgrade basically should be in April and model that into Q2.

Speaker #4: Gotcha. Thanks. So, just to reiterate, the shaft upgrade should basically be in April, and we should model that into Q2.

Paul Huet: Yeah. The shaft upgrade done, and then the biggest, our biggest thing is that's about a 10-12-day shutdown. The biggest one is the paste plant in Q4. That's always been the biggest one because it allows us to fill the stopes much faster. It takes us maybe 6 to 8 days to fill a stope. Today, we'll be filling stope in 24 to 36 hours once those new complexes are built. Yeah.

Speaker #5: Yeah, so the shaft upgrade is done, and then the biggest—our biggest thing is, so that's about a 10- to 12-day shutdown. The biggest one is the batch plant in Q4.

Speaker #5: That's always been the biggest one, because it allows us to fill the stoves much faster. It takes us maybe six to eight days to fill a stove today.

Speaker #5: We'll be filling stoves in 24 to 36 hours once those new complexes are built. So, yeah.

Justin Chan: Yeah.

Paul Huet: If you come to site, you'll see all the construction going on for the new facilities. There's a lot of work going on at the moment to prepare for that new facility.

Speaker #4: Yeah. Good for the cycle.

Speaker #5: It becomes the cycle. You'll see all the construction going on for the new facilities. There's a lot of work going on at the moment.

Speaker #5: To prepare for that new facility.

Justin Chan: Absolutely. Another one's just with the balance sheet and all your CapEx plans. Can you give us your capital allocation split for this year? I know $30 to $40 is at Crescent, but maybe there's more detail you can give.

Speaker #4: Absolutely. Another one is just, I guess, with the balance sheet and all your CapEx plans—can you give us your capital allocation split for this year?

Speaker #4: I know 30 to 40 is a question, but maybe there's more detail you can give.

Paul Huet: Yeah, I'm happy to just take that one. It's Oliver here. So on the growth side of things, you know, total of so the 90 to 120 includes about 60 to 80 in growth. That's growth across all assets. Significant portion of that's going into Cosalá this year. We also have about 30 to 40 million in sustaining. That includes some capitalized infill, but the majority of the exploration budget's gonna be expensed and will be in that $15 to 20 million number that we talked about.

Speaker #5: Yeah, I'm happy to take that one. It's all over here. So, on the growth side of things, total—so the 90 to 120 inclusive of 60 to 80 in growth—that's growth across all assets.

Speaker #5: A significant portion of that's going into Crescent this year. We also have about $30 to $40 million in sustaining—that includes some capitalized infill—but the majority of the exploration budget is going to be expensed and will be in that $15 to $20 million number that we talked about.

Justin Chan: Okay. Gotcha. Maybe just one on some of your growth projects that are maybe less into people's models right now. Do you have an update on Relief Canyon in Nevada? Do you have any plans for that? Maybe one on the Antimony JV.

Speaker #4: Okay. Gotcha. And then maybe just one on some of your growth projects that are maybe less into people's models right now. Do you have an update on Relief Canyon in Nevada?

Speaker #4: Do you have any plans for that? And then maybe one on the NTMINI JV.

Paul Huet: Yeah. Look, when it comes to Relief Canyon, this year, we're going to be doing an internal study. At the moment, we're gonna be squarely focused at making sure our Silver District in Idaho is running where we need it to be. Relief Canyon is going to undergo more of a study this year that we're looking at.

Speaker #5: Yeah. Look, when it comes to Relief Canyon this year, we're going to be doing a pretty in-depth internal study at the moment where we're going to be squarely focused on making sure our silver district in Idaho is running where we need it to be.

Speaker #5: Relief Canyon is going to undergo more of a study this year that we're looking at.

Justin Chan: Gotcha. Like a scoping level study, something like that?

Speaker #4: Gotcha. Scoping-level study, something like that.

Paul Huet: Yeah. It's gonna be an internal study. Last year we didn't do any studies. We want to understand some of the ore, some of the resource, and some of the grade robbing stuff. Look, a lot of that stuff is almost identical to what I had, me and Mike at Hollister. That material appears to be very, very similar to what we mined before. The grade's different. We wanna understand it. We're gonna do an internal study led by our, well, our COO, Mike Dolan. We're gonna come back to the market and we're gonna come back to our board first and decide what's the best thing to do. We're getting a lot of inbound calls on it. There's a lot of interest on it, meets metal prices.

Speaker #5: Yeah. It's going to be an internal study that—so last year, we didn't have any, we didn't do any study. We want to understand some of the, or some of the resource, and some of the prey-grabbing stuff.

Speaker #5: Look, a lot of that stuff is almost identical to what I had—me and Mike—at Hollister. That material appears to be very, very similar to what we mined before.

Speaker #5: The grade's different, so we want to understand it. We're going to do an internal study led by our COO, Mike Doolan, and we're going to come back to the market.

Speaker #5: We're going to come back to our board first and decide what's the best thing to do. We're getting a lot of inbound calls on it.

Speaker #5: There's a lot of interest on it. It needs metal prices. I don't think we're ready to just give it away to anybody yet. It would be crazy to just give this thing away.

Paul Huet: I don't think we're ready to just give it away to anybody. It would be crazy to just give this thing away. There's opportunity here.

Speaker #5: There's opportunity here.

Justin Chan: Gotcha. On the antimony JV, I guess, are there any kind of updates or milestones that we should expect in the next, I guess, over the course of this year to still look out for?

Speaker #4: Gotcha. And then on the NTMINI JV, I guess, are there any kind of updates or milestones that we should expect in the next I guess over the course of this year to look out for?

Paul Huet: Yeah. The team has developed. I'm actually here taking this call right now from Bolivia. I'm here visiting the new plant that was built. I'll be at the site in probably about 12 hours to go visit the new plant that is feeding the product already into Montana. We're building something identical to this thing. The purpose of us being here in Bolivia is to actually see the process, understand it, and see what it is we're trying to replicate in Idaho. It's moving at a speed that was faster than I expected, but for down here.

Speaker #5: Yeah. So the team is developed. I'm actually here taking this call right now from Bolivia. I'm here visiting the new plant that was built.

Speaker #5: I'll be at the site in probably about 12 hours to go visit the new plant that is already feeding product into Montana. We're building something identical to this thing.

Speaker #5: So, the purpose of us being here in Bolivia is to actually see the process, understand it, and see what it is we're trying to replicate in Idaho.

Speaker #5: So, it's moving at a speed that was faster than I expected. That's for darn sure.

Operator 2: Thank you. Your next question comes from line of Nicolas Dion of ATB Cormark Capital Markets. Your line is open.

Speaker #4: Thank you. Your next question comes from the line of Nicholas Dion of ATB Cormark Capital Markets. Your line is open.

Nicolas Dion: Hey, guys. Congrats on the progress of both your mines. Just two questions from me. I guess I'll start by following on the questions on the guidance. Second to that, how should we think about the trajectory of production and costs at Galena looking beyond 2026?

Speaker #6: Hey, guys. Congrats on the progress that both of your minds just two questions for me. I guess I'll start by following on the questions on the guidance.

Speaker #6: Does your 2026 guidance include anything from Crescent? And then second to that, how should we think about the trajectory of production and costs at Galena looking beyond 2026?

Paul Huet: Yeah. I'll start a bit on the Crescent, then Oliver, you can go on the Cosalá. Crescent, and people just need to be reminded that we were gonna be drilling a lot of Crescent this year. Crescent will have some, a very small amount, by the way, because we have to put in secondary egresses. The reason this thing can't go into production yet is because the ramp's got to be connected. There's got to be raises, and those take us, or they're gonna take us a bit of time. At the moment, we're going to be looking at extending on the vein systems and doing like we did at Fire Creek, just extending the veins, understanding the geology. For now, this year, the tons are gonna be low.

Speaker #5: Yeah, it all starts a bit on the Crescent. Then, Oliver, you can go on the cost. So, Crescent—and people just need to be reminded that we were going to be drilling a lot at Crescent this year.

Speaker #5: Crescent will have some very small amounts, by the way. A small amount because we have to put in secondary egresses. The reason this thing can't go into production yet is because the ramp's got to be connected.

Speaker #5: There's got to be raises and those take us those are going to take us a bit of time. At the moment, we're going to be looking at extending on all on the main systems and doing like we did at Fire Creek, just extending the veins, understanding the geology.

Speaker #5: But for now, this year, the tons are going to be low. We'll be mining just on vein, no scoping. We can't scope until the secondary egresses are put in.

Paul Huet: We'll be mining just on vein, no stoping. We can't stope until the secondary egresses are put in, and that's probably a Q3 thing. We'll be getting tons for sure, and ounces out of Crescent, just smaller amounts. On the costs, Oliver, you can talk a bit about the future.

Speaker #5: And that's probably a third-quarter thing. But we'll be getting tons for sure, and ounces out of Crescent—just smaller amounts. And then, on the cost, Oliver, you can talk a bit about the future.

Oliver Turner: Yeah. Yeah, happy to. Hi, Nick. Just a couple of things, you know, as we step into the years ahead, you know, we've been out there talking about taking Galena back to its historical record production levels, which was, of course, in 2002, the mine did 5.2 million ounces.

Speaker #6: Yeah. Yeah. Happy to. Hi, Nick. And so just a couple of things. As we step into the years ahead, we've been out there talking about taking Galena back to its historical record production levels, which was, of course, in 2002, the mine did 5.2 million ounces.

Oliver Turner: We said that would take us a couple years to get there. That firmly remains in place, and that growth plan is still there, so nothing has changed there. As we do scale production, like a bunch of the things we talked about with respect to the transition to long-hole stoping, we're already talking about a 70-30 split that's progressing extremely well. We've got additional byproduct credits obviously that are now payable with the new contract in place from Teck that'll also be netted out against our all-in sustaining cost numbers. A steady decline from here onwards as we execute over these next couple of years at Galena is certainly expected.

Speaker #6: And we've said that would take us a couple of years to get there. That firmly remains in place, and that growth plan is still there.

Speaker #6: So nothing has changed there. And as we do scale production, like a bunch of the things we've talked about with respect to the transition to long-hole scoping, we're already talking about a 70/30 split that's progressing extremely well.

Speaker #6: We've got additional by-product credits, obviously, that are now payable with the new contract in place from tech. That'll also be netted out against our all-in sustaining cost numbers.

Speaker #6: So a steady decline from here onwards as we execute over these next couple of years at Galena is certainly expected. And in terms of where things can get, we'll put a guidance at the appropriate period of time for those numbers.

Oliver Turner: In terms of where things can get, you know, we'll put a guidance at the appropriate period of time for those numbers. Significant cost decreases as we ramp towards that historical production number. Crescent as well, as Paul just talked about, lots of work going on there. Once we're into full production there, we expect that to be contributing ore to the Galena mill. You know, that historical PEA that's out there on Crescent, obviously not our PEA, it's the prior owner's PEA from 2015. However, that gives you a good indication of the potential of Crescent. We think we can potentially do better than that, but need to get in there and do more work. Then of course, down at Cosalá, we're fully into EC-120 now.

Speaker #6: But significant cost decreases as we ramp towards that historical production number. Crescent, as well as Paul just talked about—lots of work going on there.

Speaker #6: Once we're into full production there, we expect that to be contributing more to the Galena mill. That historical PEA that's out there on Crescent, obviously, not our PEA.

Speaker #6: It's the prior owner's PEA from 2015. However, that gives you a good indication of the potential Crescent. We think we can potentially do better than that, but we need to get in there and do more work.

Speaker #6: And then, of course, down at Cosalá, we're fully into EC120 now. Last year, we had a record year despite some limitations, geographically, in the state, which the team navigated through excellently.

Oliver Turner: Last year, we had a record year, despite, you know, some limitations geographically in the state, which the team navigated through you know, excellently. We expect another strong year that's gonna be in line with last year at Cosalá. You know, what we identified here with El Alacrán just north of San Rafael. San Rafael is the mine that we, you know, quote-unquote, depleted last year, while now we've got a new discovery just north of it, which looks extremely interesting. We haven't really been able to drill to the extent that we would like to at Cosalá. Obviously, we're allocating some meters there this year, and we're excited to get in there. There's numerous targets just similar to the El Alacrán discovery that we'd like to get into at Cosalá.

Speaker #6: We expect another strong year that's going to be in line with last year at Cosalá. But then what we identified here with Alec Fran just north of San Rafael—San Rafael is the mine that we "depleted" last year—while now we've got a new discovery just north of it, which looks extremely interesting.

Speaker #6: We haven't really been able to drill to the extent that we would like to at Cosola. Obviously, we're allocating some meters there this year, and we're excited to get in there.

Speaker #6: But there's numerous targets, just similar to the Alec Fran discovery, that we'd like to get into at Cosola. And then, of course, really get in there to evaluate the impact on optimizing mining activities.

Oliver Turner: Of course, really get in there to evaluate the impact on optimizing mining activities. Cosalá will grow from here, as will Galena. We still expect that ramp up over the years to come.

Speaker #6: So Cosalá will grow from here, and as will Galena. So we still expect that ramp-up over the years to come.

Nicolas Dion: Okay, that's helpful. Thanks. Yeah, my second question was gonna be on El Alacrán at Cosalá. Can you maybe elaborate on that discovery a bit more, in terms of, I guess-

Speaker #1: Okay, that's helpful, thanks. And yeah, my second question was going to be on Alec Fran at Cosalá. Can you maybe elaborate on that discovery a bit more?

Nicolas Dion: Yeah

Nicolas Dion: ...the potential you see there and how close it is maybe to San Rafael's development, et cetera?

Speaker #1: In terms of, I guess, the potential you see there and how close it is maybe to San Rafael's development, etc.?

Oliver Turner: It's a brand-new discovery. One of the key things that we really enjoyed in our due diligence of this company was when we went down to Mexico in 2024 during our due diligence, you know, several times, obviously prior to taking over management of the company. We were really impressed by the exploration potential at Cosalá. There's been numerous outcrops that have been drilled there, and I believe the last five of them have turned into five mines at Cosalá. Of course, that's not a poor projection on turning, you know, future outcrops into mines, but it certainly bodes well for the prospectivity of the region.

Speaker #6: Yeah, so it's a brand new discovery. One of the key things that we really enjoyed in our due diligence with this company was when we went down to Mexico in 2024 during our due diligence, several times, obviously, prior to taking over management of the company, we were really impressed by the exploration potential at Cosala.

Speaker #6: There have been numerous outcrops that have been drilled there. And I believe the last five of them have turned into five mines at Cosalá. Of course, that's not a poor projection on turning future outcrops into mines, but it certainly bodes well for the prospectivity of the region.

Oliver Turner: There are seven outcropping areas that have been identified that are just screaming to be drilled, and one of those areas in El Alacrán has yielded the sort of first discovery under this team, which is a really strong start. It's only 600 meters north of San Rafael. Look at the whole district down there. It's not stretched out over a large area in terms of where these mines are, and they obviously all feed centralized milling. That's an area as we continue to drill into it this year, could potentially be feeding the milling center there in the years to come. This year will be focused entirely on EC-120 from a production standpoint. That's the higher grade silver, copper. But other metals can come back into the mix there with exploration success like we've seen at Alacrán.

Speaker #6: There are seven outcropping areas that have been identified that are just screaming to be drilled. And one of those areas in Alec Fran has yielded the sort of first discovery under this team, which is a really strong start.

Speaker #6: It's only 600 meters north of San Rafael. Look at the whole district down there. It's not stretched out over a large area in terms of where these mines are.

Speaker #6: And they obviously all feed centralized milling. So that's an area, as we continue to drill into it this year, that could potentially be feeding the milling center there in the years to come.

Speaker #6: This year, we'll be focused entirely on EC120 from a production standpoint. That's the higher-grade silver-copper. But other metals can come back into the mix there with exploration success, like we've seen at Alec Fran.

Nicolas Dion: Okay, very good. Last one, I don't know if it was mentioned, but what was the split of your exploration program between the two mines?

Speaker #1: Okay, very good. And last one—I don’t know if it was mentioned, but what was the split of your exploration program between the two mines?

Oliver Turner: Yeah. Three-quarters of that will be spent in Idaho, and about a quarter of it will be spent in Mexico. Give or take, about $5 million would be in Mexico and $15 million in Idaho. That's across both at Crescent and at Galena will be drilling aggressively. We're gonna have north of 10 drills drilling across both sites there, which is a huge step up. Those sites haven't seen more than a couple drills turning at them for many years now. This is the largest exploration program in this company's history, 64,000m. You know, as a reminder for everyone listening, those are all drilled from underground. Those are essentially short holes in Idaho.

Speaker #6: Yeah, but three-quarters of that will be spent in Idaho, and about a quarter of it will be spent in Mexico. So, give or take, about $5 million would be in Mexico and $15 million in Idaho.

Speaker #6: And that's across both at Crescent and at Galena. We'll be drilling aggressively. We're going to have north of 10 drills running across both sites there, which is a huge step up.

Speaker #6: Those sites haven't seen more than a couple of drills turning at them for many, many years now. So, this is the largest exploration program in this company's history.

Speaker #6: 64,000 meters. As a reminder for everyone listening, those are all drilled from underground. So those are essentially short holes in Idaho, so you get a lot of pierce points—a lot of data points—for that meterage there.

Oliver Turner: You get a lot of pierce points, a lot of data points for that meterage there. We've already seen some strong results with 34 vein discovery, which went into the new resource, which helped to boost those grades. We saw a grade increase there. 149 is not yet in the resource, but we're looking to get it in there as well. Of course, the new 520 discovery, which is over near the Coeur Mine, which is connected to Galena Underground, is another high-grade discovery. This mine's been doing this for well over 100 years, and certainly looking like it's gonna continue for a long period of time.

Speaker #6: And we've already seen some strong results with 34 Vein discovery, which went into the new resource, which helped to boost those grades. We saw a grade increase there.

Speaker #6: 149 is not yet in the resource, but we're looking to get it in there as well. And then, of course, the new 520 discovery, which is over near the core mine, which is connected to Galena underground, is another high-grade discovery.

Speaker #6: And this mine's been doing this for well over 100 years, and certainly looking like it's going to continue for a long period of time.

Nicolas Dion: Okay, thanks. That's it for me.

Speaker #1: Okay, thanks. That's it for me.

Operator 2: Your next question comes from the line of Amanda Lewis of Desjardins. Your line is open.

Speaker #5: Your next question comes from the line of Amanda Lewis of Desjardins. Your line is open.

Amanda Lewis: Good morning, and thanks for taking my questions. First, we saw a major increase in resources at Galena. Can you just walk us through what drove that change? Would it apply to the long-term mine life at Galena, especially with the Crescent integration? Just also what drove the large grade increase at Galena?

Speaker #4: Good morning, and thanks for taking my questions. So first, we saw a major increase in resources at Galena. Can you just walk us through what drove that change and what it implies for the long-term mine life at Galena, especially with the Crescent integration?

Speaker #4: And then, just also, what drove the large grade increase at Galena?

Oliver Turner: Yeah. Happy to be there.

Speaker #6: Yeah. Happy to be there. No, go ahead, Oliver. Go ahead. You go ahead, Oliver. But the one thing that, as we're talking about grade, I just want to remind people, one of the things about last year in the drilling and everything we had, when I think back to 2025 and I think, "Well, we actually mined nine stilts last year." And almost every conference I go into or Oliver goes into, people ask us about the grades, the grades.

Paul Huet: Hi, yeah.

Oliver Turner: Go ahead, Paul.

Paul Huet: No, go ahead, Oliver. Go ahead.

Oliver Turner: I got it.

Paul Huet: You go ahead, Oliver.

Oliver Turner: Yeah.

Paul Huet: The one thing that as we're talking about grade, I just wanna remind people, one of the things that about last year, in the drilling and everything we had, when I think back of 2025 and I think, well, we actually mined nine stopes last year, and almost every conference I go into or Oliver goes into, people ask us about the grade and how the impact of those nine stopes. We're carving these things out surgically with long-hole. We have seen the best grade at Galena in two decades. The best grade this mine has seen in 20 years was last year, a record year, the best grade in 20 years while we're carving out long-hole stope.

Speaker #6: And how the impact of those nine stilts is, we're carving these things out surgically with long hole. We have seen the best grade at Galena in two decades.

Speaker #6: The best grade this mine has seen in 20 years was last year—a record year. The best grade in 20 years. While we're carving out longhole stilts, Oliver, go ahead and talk about the resource.

Paul Huet: Oliver, go ahead and talk about the resource, but I think I just wanted to inject that because a lot of the questions we were asked throughout the year were about how will it impact the resource, how will it impact the grade, and will we see a tremendous drop in grades because of added dilution? The opposite occurred for us. Yeah, the best grade in 20 years. Go ahead on the resource, Oliver.

Speaker #6: But I think I just wanted to inject that because a lot of the questions we were asked throughout the year were about: How will it impact the resource? How will it impact the grade? And will we see a tremendous drop in grade because of ad evolution?

Speaker #6: The opposite occurred for us. Yeah. The best grade in 20 years. So go ahead on the resource, Oliver.

Oliver Turner: Yeah, no, it's a very, very good point. I mean, one of the key considerations here is as we're integrating more long-hole stopes in this mine plan, right? We're shifting from 100% underhand cut and fill or conventional mining to a blend of mechanized long-hole stoping. There will always be some cut and fill in this mine, but about a 70/30 split. Yeah, as we've baked more of those long-hole stopes into the reserve, you know, we haven't seen a major impact on grades there, right? We're applying the long-hole mining stopes there and the grade is staying very high. Our reserve grade is over 500 grams, over 520 grams actually in the silver at Galena.

Speaker #5: Yeah, no, it's a very good point. I mean, one of the key considerations here is, as we're integrating more long hole stilts in this mine plan, right, we're shifting from 100% underhand cut and fill, or conventional mining, to a blend of mechanized long hole stoping.

Speaker #5: And there will always be some cut and fill in this mine. But about 70/30 split. As we've baked more of those long hole stilts into the reserve, we haven't seen major impact on grades there, right?

Speaker #5: So we're applying long-hole mining stilts there, and the grade is staying very high. Our reserve grade is over 500 grams—over 520 grams, actually—in the silver at Galena.

Oliver Turner: Maintaining very high grade. One of the key factors for that is the fact that we're able to mine extremely narrow with these long hole stopes. That first stope we took was one meter wide. We've taken numerous narrow long hole stopes there with the same basically widths that we'd be able to mine with cut and fill. That means that planned dilution is exactly the same as what we're getting with cut and fill. Really strong performance by the team there, and the mine looks well positioned. One other thing to mention here too is Galena's in the top five highest grade silver mines in the world, and we're only increasing grades with these discoveries. One of your questions there was what drove the grade increases.

Speaker #5: So, maintaining very high grade, and one of the key factors for that is the fact that we're able to mine extremely narrow with these long hole stilts.

Speaker #5: That first stope we took was one meter wide. We've taken numerous narrow long-hole stopes there with basically the same width that we'd be able to mine with cut and fill.

Speaker #5: So that means that planned dilution is exactly the same as what we're getting with cut and fill. So, really strong performance by the team there.

Speaker #5: And the mine looks well positioned. One other thing to mention here too is Galena is in the top five highest-grade silver mines in the world.

Speaker #5: And we're only increasing grades with these discoveries. So, one of your questions there was, what drove the grade increases? The 34 vein discovery, which we announced midway through last year, when we first drilled that off with that headline hole that was 983 grams, well over three meters there in width—triple our minimum mining width—we initially had a one to two million ounce target on that vein.

Oliver Turner: The 34 Vein discovery, which we announced midway through last year, when we first drilled that off, you know, with that headline hole, those 983 grams, well over 3 meters there in widths, you know, triple our minimum mining width. We initially had a 1 to 2 million ounce target on that vein. We put another update out, about a month and a bit ago, and we ended up expanding that to about 6 to 7 million ounce target across multiple different vein displays. That vein system continues to grow. It's just an example of what's been happening at Galena for over 100 years here, and will happen well into the future. We're quite excited about that inclusion.

Speaker #5: We put another update out about a month and a bit ago. And we ended up expanding that to about six to seven million ounce target across multiple different vein splays.

Speaker #5: That vein system continues to grow. And it's just an example of what's been happening at Galena for over 100 years here. And we'll happen well into the future.

Speaker #5: So we're quite excited about that inclusion. That was included in the resource and helped drive grades up even net of depletion, even with incorporating those long hole stilts there.

Oliver Turner: That was included in the resource and helped drive grades up, even net of depletion, even with incorporating those long-hole stopes there. We had the 149 vein, you know, 25kg hit, 20cm wide, but you dilute that 5 times, you're down to a 5kg intercept or cut there. That was not yet included in the resource. There's still more grade upsides to come there. Of course, the 600g plus hits that we've seen at 520 in the core also not included. The good news on grade improvements is it's being drilled, it's being increased with intercepts with the drill bit. That's real data feeding that's increasing those grades, not just a manipulation of cut-off grades in either direction. Very excited about that.

Speaker #5: We had the 149 vein, 25-kilogram hit, 20 centimeters wide, but you dilute that five times, you're down to a 5-kilogram intercept, or cut there.

Speaker #5: That was not yet included in the resource, so there's still more grade upsides to come there. And, of course, the 600 gram-plus hits that we've seen at 520 in the core are also not included.

Speaker #5: So the good news on grade improvements is it's being drilled; it's being increased with intercepts with the drill bit. That's real data feeding that, that's increasing those grades—not just the manipulation of cutoff grades in either direction.

Speaker #5: So, very excited about that. Down at Coastal Light, you also saw reclassification resources. We moved some resources into Inferred from M&I, not impacting the mine life whatsoever.

Oliver Turner: Down at Cosalá, you also saw reclassification resources. We moved some resources into inferred from M&I, not impacting the mine life whatsoever, that we have at Zone 120. We're gonna be infill drilling those areas and bringing them back into M&I this year. We've applied very stringent controls both in Mexico and in Idaho with this resource. We've done this at multiple different companies before, where we build our own resource, but of course, now we can build our mine plans around going forward. Strong results across the board of both, and feeding it with the drill bit. Look, we're gonna be doing a ton of drilling this year, so we're excited about what that can mean for the year-end resource a year from now.

Speaker #5: What we have at EC 120 are going to be infill drilling those areas and bringing them back into M&I this year. We've applied very stringent controls both in Mexico and in Idaho with this resource.

Speaker #5: And we've done this at multiple different companies before, where we build our own resource. But, of course, now we can build our mine plans around going forward.

Speaker #5: So, strong results across the board on both. And feeding it with the drill bit. And look, we're going to be doing a ton of drilling this year.

Speaker #5: So excited about what that can mean for the year-end resource a year from now.

Amanda Lewis: Okay, great. That's very helpful. Just lastly, could you just provide a bit more color on how the long-hole stoping is going at Galena? I'm specifically wondering how the mining teams are performing, and what areas do you still wanna work on?

Speaker #4: Okay, great, that's very helpful. And then, just lastly, could you provide a bit more color on how the long-hole stoking is going at Galena?

Speaker #4: I'm specifically wondering how the mining teams are performing, and what areas do you still want to work on?

Oliver Turner: Yeah, Oliver, I can talk about that. As we've been talking about, we've taken out, depending on how you look at it, seven or nine panels already. We are changing up a bit of the way we're drilling to make sure that we're very consistent in our blast patterns, where this mine hasn't seen long hole forever. Depending on where we are in the mine, we are quickly recognizing, and this is not uncommon in any of the mines I've worked at in my life, by domain, if the areas are very steep, 89, 90 degrees, we might need one less hole. We're just improvising or improving or optimizing our drill patterns, our blasting patterns. If we're down to 72 degrees, we need an extra hole.

Speaker #6: Yeah, Oliver, I can talk about that. So, as we've been talking about, we've taken out, depending on how you look at it, seven or nine panels already.

Speaker #6: We are changing up a bit of the way we're drilling to make sure that we're very consistent in our blast patterns. This mine hasn't seen long-hole forever.

Speaker #6: So, depending on where we are in the mine, we are quickly recognizing—and this is not uncommon in any of the mines I've worked at in my life.

Speaker #6: By domain, if the areas are very steep—89, 90 degrees—we might need one less hole. So we're just improvising, or improving, or optimizing our drill patterns, our blasting patterns, if we're down to 72 degrees.

Speaker #6: We need an extra hole. But what we're seeing is, we're determining our stope height, our length, and the intent is that 70% of everything we do going forward will all be long hole.

Paul Huet: What we're seeing is we're determining our stope height, our length, and the intent is that 70% of everything we do going forward will all be long hole. All we're doing right now at the moment is optimizing it, but we just continue to get better and better and better in the first couple stopes we have done. The more efficient we get, we'll just be moving more tons per day using remote controls instead of drilling and blasting with jacklegs, which has been done forever. Long hole is like most people understand it's not a complicated thing, it just needs to be done right. You gotta have your top breaks good, you gotta have your bottom breaks good.

Speaker #6: All we're doing right now, at the moment, is optimizing it, though. We're just continuing to get better and better and better. And in the first couple of stilts, we have done.

Speaker #6: And the more efficient we get, we'll just be moving more tons per day using remote controls instead of drilling and blasting them with jack legs, which has been done forever.

Speaker #6: So, long hole is like most people understand. It's not a complicated thing. It just needs to be done right. You got to have your top that's good.

Speaker #6: You got to have your bottom, that's good. You got to make sure that you can check your—in our case, we check our breakthroughs.

Oliver Turner: You wanna make sure that you can check, you know, in our case, we check our breakthroughs so they're not in the footwall or hanging wall, and we don't have a lot of deviation and unnecessary additional dilution. Pretty simple game in our world, given we've done it all over the world.

Speaker #6: So they're not in the footwall or hanging wall, and we don't have a lot of deviation and unnecessary additional dilution. So, pretty simple game in our world, given we've done it all over the world.

Amanda Lewis: Okay, great. Thank you. That's all for me. Thank you.

Speaker #4: Okay. Great. Thank you. That's all for me.

Speaker #6: Thank you.

Operator 2: Again, if you have a question, please press star one on your telephone keypad to raise your hand and join the queue. Your next question comes from the line of Wayne Lam of TD Cowen. Your line is open.

Speaker #5: Again, if you have a question, please press star one on your telephone keypad to raise your hand and join the queue. Your next question comes from the line of Wayne Lam of TD Cowen.

Speaker #5: Your line is open.

Wayne Lam: Yeah, thanks. Morning, guys. Maybe just wondering on the new discoveries, obviously some positive development that could support a further increase in production. Maybe if you might be able to give us some color on the new 520 vein and the timeline on that, and whether the core shaft upgrades put the infrastructure in position to be ready for production and it's just a function of drilling and development, but no actual constraints on the processing infrastructure.

Speaker #6: Yeah, thanks. Morning, guys. Maybe just wondering about the new discoveries. Obviously, there are some positive elements that could support a further increase in production. Maybe if you could give us some color on the new 520 vein and the timeline for that, and whether the core shaft upgrades put the infrastructure in position to be ready for production—and it's just a function of drilling and development.

Speaker #6: But no actual constraints on the processing infrastructure. So that upgrade we did in the core motors at the very end of December 2025 was the first time that we ever have redundant motors here.

Paul Huet: That upgrade we did in the Coeur motors at the very end of December 2025 was the first time that we ever had redundant motors, you know. We're preparing ourselves for using that shaft. There's still some work to do in the loading pockets and other areas, that we have identified. The new vein, 520, has been part of a drill program at Coeur. Given that it's a brand new discovery, we've got quite a few holes into it already. We're gonna drill it quite a bit and see, can we access it from the number 3 shaft or can we access it from Coeur. One of the advantages we have in this district is that Coeur and number 3 shaft are connected. In fact, that's our secondary egress.

Speaker #6: So we're preparing ourselves for using that shaft. There's still some work to do in the loading pockets and other areas. That we have identified.

Speaker #6: But the new Vein 520 has been part of a drill program at Core. So, given that it's a brand new discovery, we've got quite a few holes into it already. We're going to drill it quite a bit and see—can we access it from the Number Three Shaft or can we access it from Core?

Speaker #6: One of the advantages we have in this district is that Core and Number Three Shaft are connected. In fact, that's our secondary egress, so we travel across to get out in the event that the Number Three Shaft is down.

Paul Huet: We travel across to get out in the event that the number 3 shaft is down. We will be able to mine that 520 vein from the number 3 shaft, even when the upgrades come into the number 3 shaft this quarter, in March and April as we're doing these upgrades. Once we get more drilling into it, we're going to start looking at how do we mine it from the best location? It's very fresh. It's very new. We're quite excited about it. It's not going to be the only discovery we have. There will be many more. We have 10 new veins here. There's no doubt there will be more discoveries.

Speaker #6: So we will be able to mine that 520 vein from the Number Three Shaft, even when the upgrades come into the Number Three Shaft.

Speaker #6: This quarter, and March and April, as we're doing these upgrades. So once we get more drilling into it, we're going to start looking at how do we mine it from the best location.

Speaker #6: So it's very fresh. It's very new. We're quite excited about it. It's not going to be the only discovery we have—there will be many more.

Speaker #6: We have 10 new veins here. There's no doubt there will be more discoveries. One of the biggest things we always saw about these assets, what they were under-explored.

Paul Huet: One of the biggest things we always saw about these assets were underexplored and we needed money, and we're drilling them now. 520 just needs more drilling. We have optionality to mine it from either shaft, Coeur or Number 3 shaft, and skipping it up either one. Coeur is a bit out there because of the work that needs to be done in the loading pocket.

Speaker #6: And we needed money. And we're drilling them now. So 520—it just needs more drilling. We have optionality to mine it from either shaft, Core or Number Three shaft, and skipping it up either one.

Speaker #6: Core is a bit out there because of the work that needs to be done in the loading pocket. Okay. Great. Yeah. Sounds like a pretty big opportunity.

Wayne Lam: Okay, great. Yeah, sounds like a pretty big opportunity. Maybe at San Rafael, just wondering with the higher silver price, as AISC $120 ramps up, is there potential for continued mining there and to add incremental tonnage to the production profile?

Speaker #6: And then maybe at San Rafael, just wondering, with the higher silver price and as EC120 ramps up, is there potential for continued mining there and to add incremental tonnage to the production profile?

Paul Huet: Oliver, I'll let you take that one maybe.

Speaker #6: Oliver, I'll let you take that one.

Oliver Turner: Yeah. San Rafael, particularly the higher grade upper areas, which we were mining towards the end of last year, there are still some portions there that can come into the mill there down at Cosalá. The majority of mill feed this year is slated to be EC120. Of course, all of this subject to improvement based on drilling exploration results. You know, obviously, we're not gonna be putting El Alacrán into there within the next six months or anything like that. Continued positive drilling intercepts there in the upper portions of San Rafael can add some more feed. You know, continued drilling success from underground at EC120 will allow us to get into some of the higher grade areas there as well.

Speaker #5: Yeah. So at San Rafael, particularly the higher-grade upper areas, which we're mining towards the end of last year, there are still some portions there that can come into the mill there down at Coastla.

Speaker #5: But the majority of mill feed this year is slated to be EC120, of course. All of this is subject to improvement based on drilling and exploration results.

Speaker #5: And obviously, we're not going to be putting Alacran into there within the next six months or anything like that. But continued positive drilling intercepts there in the upper portions of San Rafael can add some more feed.

Speaker #5: And then also, continued drilling success from underground at EC120 will allow us to get into some of the higher-grade areas there as well. So, Cosalá—the team executed excellently there last year with record production for the asset.

Oliver Turner: Cosalá is, you know, the team executed excellently there last year with a record production for the asset, looking for similar this year with upside, you know, pending drill success there this year. Obviously we'll be scaling it in the years to come.

Speaker #5: Looking for similar this year, with upside pending drill success there this year. And then, obviously, we'll be scaling it in the years to come.

Wayne Lam: Okay, sounds great. Congrats on the update and thanks for taking my questions.

Speaker #6: Okay, sounds great. Congrats on the update, and thanks for taking my questions.

Oliver Turner: Thanks, Wayne.

Speaker #5: Thanks, Wayne.

Operator 2: Your next question comes from the line of Heiko Ihle of H.C. Wainwright. Your line is open.

Speaker #7: Your next question comes from the line of Hicko Elay of HC Wainwright. Your line is open.

Heiko Ihle: Hello, Paul and team. Thanks for taking my questions. Most of them have been answered, but just two quick ones. The 5170 decline obviously should provide a decent amount of efficiencies. I assume this is already in effect, but is there like a bit of a period over when we should see those impacts? Also just from a cash point of view, given that there's less work now getting done, should that impact cash costs at all?

Speaker #8: Hello, Paul and team. Thanks for taking my questions. Most of them have been answered, but just two quick ones. The 55-170 decline obviously should provide a decent amount of efficiencies. When should that fully—I assume this is already in effect?

Speaker #8: But is there a bit of a period over when we should see those impacts? And then also, just from a cash point of view, given that there is less work now getting done, should that impact cash costs at all?

Paul Huet: Sorry, Oliver, you're gonna have to take that. I'm not sure I heard the question at all. Go ahead, Oliver.

Speaker #6: Sorry, Oliver, you're going to have to take that up. I'm not sure I heard the question at all. Go ahead, Oliver.

Oliver Turner: No problem. Yeah, on the decline that is currently under development. We'd expect that to be you know getting those multiple access points here towards the end of Q2. Expect that to have an impact. I mean, this is all part of our 2026 mine plan anyways. You know, all baked into the guidance that we have. Certainly when it comes to cash costs, I think the way that you're thinking is right there, Heiko. We do expect costs to continue to decline as we go quarter over quarter this year.

Speaker #5: No problem. Yeah. So on the decline, that is currently under development. So we'd expect that to be getting those multiple access points here towards the end of the second quarter.

Speaker #5: So expect that to have an impact. I mean, this is all part of our 2026 mine plan anyways, so it's all baked into the guidance that we have.

Speaker #5: Certainly, when it comes to cash costs, I think the way that you're thinking is right there, Hico. We do expect costs to continue to decline as we go quarter over quarter this year.

Oliver Turner: You'd expect more of a back-end weighting to improvement in cash costs and, as we ramp up ounces, but also some of these projects that we've been working on start to impact the bottom line. One of the things that we did see in the first 14, 15 months that we've been at the helm here is we did highlight in the release there on mucking efficiencies. The company was, you know, in 2024 and prior, moving about 50 tons per shift with conventional methods. We're over 200 tons per shift now, employing the remote scoops that we have, haul trucks underground. This is all the new equipment that we put in place last year.

Speaker #5: So, you'd expect more of a back-end waiting to improvement in cash costs, and as we ramp up ounces, but also some of these projects that we've been working on start to impact the bottom line.

Speaker #5: One of the things that we did see in the first—what's it been, 14, 15 months—that we've been at the helm here, we did highlight in the release, there is on mucking efficiencies.

Speaker #5: The company was, in 2024 and prior, moving about 50 tons per shift with conventional methods. We're over 200 tons per shift now, employing the remote scoops that we have.

Speaker #5: Haul trucks underground. This is all the new equipment that we put in place last year. And now we actually have a fiber optic system that's being laid down on number three, and it's going to be developed out on different levels there. That'll give us basically mesh Wi-Fi and communications access all throughout the mine.

Oliver Turner: Now we actually have a fiber optic system that's being laid down number three, and it's gonna be developed on different levels there that'll give us basically mesh Wi-Fi and communications access all throughout the mine. It seems like something that's sort of standard in mines these days, and it absolutely is if you're building a new mine. This mine hasn't seen any of that modern technology installed in it. That's another, you know, very easy target and low-hanging fruit that we can target there to improve efficiencies. That will then link into the lot of the equipment we're using, and it's not just mining equipment. It's fans, it's ventilators, it's automating all sorts of parts of the mine and monitoring it in real time.

Speaker #5: It seems like something that's sort of standard in mines these days, and it absolutely is if you're building a new mine. But this mine hasn't seen any of that modern technology installed in it.

Speaker #5: So that's another very easy target and low-hanging sort of area of low-hanging fruit that we can target there to improve efficiencies. That will then link into a lot of the equipment we're using.

Speaker #5: And it's not just mining equipment. It's fans, it's ventilators, it's automating all sorts of parts of the mine and monitoring it in real time.

Oliver Turner: We expect that to continue to improve, you know, dispatch efficiency, cycle times, and productivities across the board. All of that starts to be impacted once that system's in place, which again is H2. You're gonna see steady improvements in efficiencies over the course of this year. You're gonna see costs come down at the operating level over the course of this year. All of that kind of works in tandem as tons come up, you know, ounces come up, costs go down, byproducts come up, efficiencies go up. You'll see a positive trend this year, Heiko, as we execute quarter by quarter, and things will get even better next year, obviously, in 2027.

Speaker #5: We expect that to continue to improve dispatch, efficiency, cycle times, and productivities across the board. All of that starts to be impacted once that system's in place, which again is the second half of the year.

Speaker #5: So you're going to see steady improvements in efficiencies over the course of this year. You're going to see costs come down at the operating level over the course of this year.

Speaker #5: All of that kind of works in tandem as tons come up, ounces come up, costs go down, byproducts come up, efficiencies go up. So you'll see a positive trend this year, Hico, as we execute quarter by quarter.

Speaker #5: And things will get even better next year, obviously, in '27.

Heiko Ihle: Fair enough. Just one quick clarification. How much would you say you spend on fuel at Galena or even across the company per month or per quarter? Just purely out of curiosity.

Speaker #6: Fair enough. And then, just one quick clarification: how much would you say you spend on fuel at Galena, or even across the company, per month or per quarter?

Speaker #6: Just purely out of curiosity.

Oliver Turner: Warren, do you wanna take a stab at that one?

Speaker #5: Warren, do you want to take us down on that one?

Paul Huet: Yeah. No, I wouldn't even know where to start, man. Heiko, I'll give you a number after the call. There's no way I'll know that off my head.

Speaker #6: No, I wouldn't even know it off the top of my head. I'll give you a number after the call. There's no way I'll know that off the top of my head.

Heiko Ihle: Yeah. Yeah, I mean, obviously just, you know, given what prices have been doing, but I assume the impact's fairly small.

Speaker #8: Yeah, yeah. I mean, obviously, just given what prices have been doing, but I assume the impact's fairly small.

Oliver Turner: It is, Heiko. One of the things to remember there, of course.

Speaker #5: It is, Hico. One of the things to remember there, of course, is that Galena is integrated into the grid power system, of course. In Idaho.

Paul Huet: Yeah. It's not open pit.

Oliver Turner: ... is that it, Galena is integrated into the grid power system, of course, in Idaho. You know, there's not a lot of diesel consumption on site. Obviously, some of our underground equipment runs on diesel. Broadly speaking, the mine is powered by grid power, so not the same impact that you'd expect to see in a large open pit, in terms of diesel cost impact. We can get you that number.

Speaker #5: There's not a lot of diesel consumption outside. Obviously, some of our underground equipment runs on diesel. But broadly speaking, the mine is powered by grid power.

Speaker #5: So, not the same impact that you'd expect to see in a large open pit, in terms of diesel cost impact. But we can get you that number.

Heiko Ihle: Appreciate it.

Paul Huet: Remember, we have a lot of rail, right? Our rail transports a lot of our ore and waste in the mine. Anyhow, thanks, Heiko.

Speaker #6: And remember, we have a lot of rail, right? Our rail transports a lot of our foreign waste in the mine. Anyhow, thanks, Hico.

Heiko Ihle: Cool. I'll get back to you. Thank you, guys.

Speaker #8: Cool. I'll get back to you. Thank you, guys.

Operator 2: With no further questions at this time, I will now turn the conference back over to Paul for some closing remarks.

Speaker #7: With no further questions at this time, I'm going to turn the conference back over to Paul for some closing remarks.

Paul Huet: I just wanna thank Oliver and Warren for helping me on the call today. I really wanna take a moment and thank you all, our shareholders, our teams at both sites. Look, we're coming up for one year without an LTA in Mexico as well. That doesn't happen by accident. Great job to both sites for outstanding safety commitments. I'm looking forward to 2026. It's a very exciting year. Another big step up again for us. We continue to deliver on our operational successes. Thank you, everyone. Have a great day, and we'll talk soon.

Speaker #6: I just want to thank Oliver and Warren for kind of helping me on the call today. And I really want to take a moment and thank you, all our shareholders.

Speaker #6: Our teams at both sites—look, we're coming up on one year without an LTA in Mexico as well. That doesn't happen by accident.

Speaker #6: So great job to both sites for outstanding safety commitments. And I'm looking forward to 2026. It's a very exciting year. Another big step up again for us.

Speaker #6: We continue to deliver on our operational successes, so thank you, everyone. Have a great day, and we'll talk soon.

Operator 2: This concludes today's conference call. You may now disconnect.