Q1 2026 Torex Gold Resources Inc Earnings Call

May 7, 2026

Operator 3: Thank you for standing by. This is the conference operator. Welcome to the Torex Gold Q1 2026 Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then 0. I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Operator: Thank you for standing by. This is the conference operator. Welcome to the Torex Gold Q1 2026 Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Speaker #3: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad.

Speaker #3: You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star, then 0.

Speaker #3: I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q1 2026 conference call. Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the Investor section of our website.

Dan Rollins: Thank you, operator. Good morning, everyone. On behalf of the Torex team, welcome to our Q1 2026 Conference Call. Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the investor section of our website. I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page 2 of today's presentation as well as those included in the Q1 2026 MD&A. On the call today, we have Jody Kuzenko, President and CEO, and Andrew Snowden, CFO. Following the presentation, Jody and Andrew will be available for the question and answer period. This conference call is being webcast and will be available for replay on our website.

Dan Rollins: Thank you, operator. Good morning, everyone. On behalf of the Torex team, welcome to our Q1 2026 Conference Call. Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the investor section of our website. I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page two of today's presentation as well as those included in the Q1 2026 MD&A. On the call today, we have Jody Kuzenko, President and CEO, and Andrew Snowden, CFO. Following the presentation, Jody and Andrew will be available for the question and answer period. This conference call is being webcast and will be available for replay on our website.

Speaker #2: I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page 2 of today's presentation as well as those included in the Q1, 2026 MD&A.

Speaker #2: On the call today, we have Jody Kuzenko, President and CEO, and Andrew Snowden, CFO. Following the presentation, Jody and Andrew will be available for the question-and-answer period.

Speaker #2: This conference call is being webcast and will be available for replay on our website. Last night's press release and the accompanying financial statements and MD&A are posted on our website, and have also been filed on Cedar Plus.

Dan Rollins: Last night's press release and the accompanying financial statements and MD&A are posted on our website and have also been filed on SEDAR+. Also note that all amounts mentioned in this call are US dollars unless otherwise stated. I'll now turn the call over to Jody.

Speaker #2: Also note that all amounts mentioned in this call are US dollars unless otherwise stated. I'll now turn the call over to Jody.

Speaker #3: Thank you, Dan, and good morning to everyone on the line. As this will be my final earnings call as CEO of Torex, I wanted to take a moment here to reflect on how the company has evolved since I joined back in 2018.

Jody Kuzenko: Thank you, Dan. Good morning to everyone on the line. As this will be my final earnings call as CEO of Torex Gold Resources Inc., I wanted to take a moment here to reflect on how the company has evolved since I joined back in 2018. Back then, we were a single mine company with production from ELG and a mine life out to 2024. Media Luna wasn't yet in reserves, and we were facing a potential gap in production between the depletion of the open pits and the start of Media Luna mining. In the years since, we've extended the mine life of the open pits and systematically stepped up production from ELG Underground to ensure stable production until Media Luna came online. We tunneled 7km underneath a river to connect to the south side of Morelos.

Jody Kuzenko: Thank you, Dan. Good morning to everyone on the line. As this will be my final earnings call as CEO of Torex, I wanted to take a moment here to reflect on how the company has evolved since I joined back in 2018. Back then, we were a single mine company with production from ELG and a mine life out to 2024. Media Luna wasn't yet in reserves, and we were facing a potential gap in production between the depletion of the open pits and the start of Media Luna mining. In the years since, we've extended the mine life of the open pits and systematically stepped up production from ELG Underground to ensure stable production until Media Luna came online. We tunneled 7km underneath a river to connect to the south side of Morelos.

Speaker #3: Back then, we were a single-mind company with production from ELG and a mine life out to 2024. Medialuna wasn't yet in reserves, and we were facing a potential gap in production between the depletion of the open pits, and the start of Medialuna mining.

Speaker #3: In the years since, we've extended the mine life of the open pits and systematically stepped up production from ELG underground to ensure stable production until Medialuna came online.

Speaker #3: We tunneled 7 kilometers underneath a river to connect to the south side of Morelos. We designed and built and successfully ramped up Medialuna ahead of schedule, and we now have steady production of gold, copper, and silver coming from two mines, with the third on track to come online later this year.

Jody Kuzenko: We designed and built and successfully ramped up Media Luna ahead of schedule, and we now have steady production of gold, copper, and silver coming from 2 mines, with a third on track to come online later this year. We've also invested meaningfully in exploration, adding 10 years of mine life at Morelos, now out to at least 2034, and we have a very clear line of sight to continue to extend mine life far beyond that. From a financial perspective, we funded Media Luna out of cash flow and a small amount of debt. Not even 3 quarters after starting up Media Luna, we are now once again debt-free and generating strong free cash flow, announcing a return of capital program for our shareholders for the first time in the company's history late last year, and stepping that up even further with our results announced last night.

Speaker #3: We've also invested meaningfully in exploration, adding 10 years of mine life at Morelos, now out to at least 2034, and we have a very clear line of sight to continue to extend mine life far beyond that.

Speaker #3: From a financial perspective, we funded Medialuna out of cash flow in a small amount of debt. Not even three quarters after starting up Medialuna, we are now once again debt-free and generating strong free cash flow.

Speaker #3: Announcing a return of capital program for our shareholders for the first time in the company's history late last year, and stepping that up even further with our results announced last night.

Speaker #3: We've also expanded our portfolio with the addition of Los Reyes, and four early-stage exploration properties, extending our footprint outside of Guerrero and venturing into Sinaloa, Chihuahua, and the United States.

Jody Kuzenko: We've also expanded our portfolio with the addition of Los Reyes and four early-stage exploration properties, extending our footprint outside of Guerrero and venturing into Sinaloa, Chihuahua, and the United States. As I step into retirement here and Andrew takes the helm, I leave the company a place that I'm proud of and excited about the future under Andrew's leadership as the company continues to grow in Mexico and beyond. Now getting into it, our quarterly results, turning to key highlights here on slide 4. Finished production was lighter quarter-over-quarter due to mine sequencing at Media Luna as we mined through lower grade and lower recovery stopes per this year's mine plan. all-in sustaining costs of $1,917 per ounce were elevated, primarily as a result of the lower finished production, higher reagent consumption, and stronger than expected Mexican peso.

Speaker #3: As I step into retirement here and Andrew takes the helm, I leave the company a place that I'm proud of and excited about the future under Andrew's leadership, as the company continues to grow in Mexico and beyond.

Speaker #3: Now, getting into it, our quarterly results, turning to key highlights here on slide 4. Finished production was lighter quarter over quarter due to mine sequencing at Medialuna, as we mine through lower-grade and lower-recovery stokes per this year's mine plan.

Speaker #3: All in sustaining costs of $1,917 per ounce, were elevated primarily as a result of the lower finished production, higher reagent consumption, and stronger-than-expected Mexican peso.

Speaker #3: However, our financials remained very strong with a record ASIC margin of 60% for the quarter, as well as record quarterly revenue, and adjusted EBITDA.

Jody Kuzenko: Our financials remained very strong with a record AISC margin of 60% for the quarter as well as record quarterly revenue and adjusted EBITDA. Despite $165 million of tax and royalty payments to government, we generated $157 million of free cash flow, enabling the full repayment of debt outstanding, while also returning $121 million to shareholders through dividends and buybacks during the quarter. Importantly and critically, all of this success was accomplished safely. I am so pleased to say that our lost time injury frequency is once again 0 per million hours worked for both employees and contractors. Just truly remarkable safety performance. Full year guidance is outlined here on slide 5.

Speaker #3: Despite $165 million of tax and royalty payments to government, we generated $157 million of free cash flow. Enabling the full repayment of debt outstanding, while also returning $121 million to shareholders, through dividends and buybacks during the quarter.

Speaker #3: Importantly, and critically, all of the success was accomplished safely, I am so pleased to say that our last-time injury frequency is once again zero, per million hours worked for both employees and contractors, as truly remarkable safety performance.

Speaker #3: Full-year guidance has outlined here on slide 5, with the return to higher-grade and recovery stokes planned in the second half of this year, production and costs are expected to strengthen accordingly.

Jody Kuzenko: With the return to higher grades and recovery stopes planned in H2 of this year, production and costs are expected to strengthen accordingly. As such, we remain on track to achieve both production and cost guidance for the year. I'd note here that Q2 production and costs are expected to be similar to those achieved in Q1. Moving on to our operational performance on slide 6. The processing plant was impacted by two extended periods of maintenance during the quarter. One was planned and the other was unplanned when we went down in February to replace a faulty batch of rock bolts, which subsequently created issues with the discharge grates in the SAG mill. I'm pleased to say that following the repair, the plant has returned to operating above design levels, and in the month of April, we averaged over 11,400 tons per day.

Speaker #3: As such, we remain on track to achieve both production and cost guidance for the year, and I'd note here that Q2 production and costs are expected to be similar to those achieved in quarter 1.

Speaker #3: Moving on to our operational performance on slide 6, the processing plant was impacted by two extended periods of maintenance during the quarter. One was planned, and the other was unplanned when we went down in February to replace a faulty batch of bolts which subsequently created issues with the discharge grates and the sag mill.

Speaker #3: I'm pleased to say that following the repair, the plant has returned to operating above design levels and in the month of April, we averaged over 11,400 tons per day.

Speaker #3: Recoveries in the chart on the right reflect the lower recovery stokes that I mentioned, and are expected to remain at current levels through Q2, before increasing in the back half of the year.

Jody Kuzenko: Recoveries in the chart on the right reflect the lower recovery stopes that I mentioned and are expected to remain at current levels through Q2 before increasing in H2. Mining rates at both Media Luna and ELG Underground are ahead of plan, as shown here on slide 7. At Media Luna, we were able to achieve consistent production at design mining rates of 7,500 tons per day. This is 9 months ahead of the schedule set out in the technical report and 3 months earlier than our latest forecast. This is due to how far advanced we were in capital development in 2025, which provided us the operational flexibility we needed. It's also due to the performance of the ore handling systems, including the Y-hoist tunnel conveyor that the team got working very reliably, very quickly.

Speaker #3: Mining rates at both Medialuna and ELG underground are ahead of plan, as shown here on slide 7. At Medialuna, we were able to achieve consistent production at design mining rates of 7,500 tons per day, this is nine months ahead of the schedule set out in the technical report, and three months earlier than our latest forecast.

Speaker #3: This is due to how far advanced we were in capital development in 2025, which provided us the operational flexibility we needed, it's also due to the performance of the ore handling systems, including the Y-hose tunnel conveyor, that the team got working very reliably, very quickly.

Speaker #3: At ELG underground, rates continued to deliver ahead of their targeted 2,800 tons per day, a trend we plan to continue until Medialuna North comes online in quarter 4 of this year.

Jody Kuzenko: At ELG Underground, rates continued to deliver ahead of their targeted 2,800 tons per day, a trend we plan to continue until Media Luna North comes online in Q4 of this year. Updates on our projects are summarized here on slide 8. At Media Luna North, we continue to make excellent progress on the North Adit breakthrough, which is on track for mid-year. Once completed, the ventilation fans will be installed, allowing access to the ore body for infrastructure construction to support first ore production. We have also continued to progress on plan the main haulage ramp back to the existing Media Luna infrastructure, with breakthrough on this ramp expected in late June. At Los Reyes, work on the preliminary economic assessment continues to progress and on schedule for completion mid-year.

Speaker #3: Updates on our projects are summarized here on slide 8. At Medialuna North, we continue to make excellent progress on the North Attic breakthrough, which is on track for mid-year.

Speaker #3: Once completed, ventilation fans will be installed, allowing access to the ore body, for infrastructure construction to support first ore production. We have also continued to progress on plan, the main haulage ramp back to the existing Medialuna infrastructure, with breakthrough on this ramp expected in late June.

Speaker #3: At Los Reyes, work on the preliminary economic assessment continues to progress, is an on-schedule for completion mid-year. The study is contemplating a combined open pit and underground mine, with milled throughput of 5,000 tons per day.

Jody Kuzenko: The study is contemplating a combined open pit and underground mine with mill throughput of 5,000 tons per day. Our target is for production between 140,000 and 150,000 gold equivalent ounces per year, with an initial mine life of at least 10 years. Fieldwork on site has not yet resumed at Los Reyes, but we continue to be in active discussions with all three levels of government and the local communities to create the conditions to safely and importantly, sustainably return to the area and resume work. Finally, before I hand the call over to Andrew, I'll touch on the exploration results we shared last week, summarized here on slide 9. In the Media Luna cluster, we're seeing strong potential to expand resources to the south and east of the mine, with surface mapping suggesting potential continuity between these two zones.

Speaker #3: Our target is for production between 140 and 150 thousand gold equivalent ounces per year, with an initial mine life of at least 10 years.

Speaker #3: Fieldwork on site has not yet resumed at Los Reyes, but we continue to be an active discussion with all three levels of government and the local communities, to create the conditions to safely and, importantly, sustainably return to the area and resume work.

Speaker #3: Finally, before I hand the call over to Andrew, I'll touch on the exploration results we shared last week. Summarized here on slide 9. In the Medialuna cluster, we're seeing strong potential to expand resources to the south and east of the mine, with surface mapping suggesting potential continuity between these two zones.

Speaker #3: Additionally, infill drilling is being conducted at the mine to upgrade inferred resources to indicated with our year-end update, with the target to offset depletion.

Jody Kuzenko: Additionally, infill drilling is being conducted at the mine to upgrade inferred resources to indicated with our year-end update, with the target to offset depletion. Drilling at Media Luna North has recommenced, targeting to expand resources even further to the north of the new mine, while drilling at Media Luna West will resume in H2 of this year, looking to build on the inaugural resource we declared in March of this year. At ELG underground, following the discovery of mineralized structures running parallel to the El Limón Sur trend announced in May last year, we've continued to find more of these structures, which importantly remain open along strike and at depth. We also continue to encounter mineralization beyond the boundary of known resources at the Sub-Sill and El Limón West trends.

Speaker #3: Drilling at Medialuna North has recommenced, targeting to expand resources even further to the north of the new mine, while drilling at Medialuna West will resume in the second half of this year, looking to build on the inaugural resource we declared in March of this year.

Speaker #3: At ELG underground, following the discovery of mineralized structures running parallel to the Elimoram sewer trend announced in May last year, we've continued to find more of these structures, which importantly remain open along strike and at depth.

Speaker #3: We also continue to encounter mineralization beyond the boundary of known resources, at the subsill and Elimoram West trends. All of this suggests that we've yet to fully unlock the full potential of ELG underground, and expect another year of resource expansion and reserve replacement, with our year-end update next March.

Jody Kuzenko: All of this suggests that we've yet to fully unlock the full potential of ELG underground and expect another year of resource expansion and reserve replacement with our year-end update next March. At our regional targets at Morelos, early drilling at Atzcala is giving us a better idea of the structural orientation of the breccia bodies, while drilling at El Naranjo commenced last month. We look forward to sharing the results of these programs once they are available. With that, I'll hand the call over to Andrew to take you through financials. Over to you.

Speaker #3: At our regional targets at Morelos, early drilling at Atskalla is giving us a better idea of the structural orientation of the breach of bodies, while drilling at El Naranjo commenced last month.

Speaker #3: We look forward to sharing the results of these programs once they are available. With that, I'll hand the call over to Andrew to take you through financials.

Speaker #1: Okay. Thank you, Jody, and good morning, everyone. And I'll start my commentary 11, and as Jody noted, all in sustaining costs for the quarter came in just above our guided range, largely due to lower production and a strong Mexican peso.

Andrew Snowden: Okay. Thank you, Jody, good morning, everyone. I'll start my commentary just turning first to slide 11. As Jody noted, our all-in sustaining costs for the quarter came in just above our guided range, largely due to lower production and a strong Mexican peso, but also due to the impact that higher metal prices has on our royalties and profit sharing, as well as higher reagent consumption required to process the lower recovery ore that again, Jody mentioned. Despite this, our margins remain robust at a record 60% for the quarter, and costs are expected to trend lower through the back half of the year as we return to higher grade and recovery stopes. One area we've been seeing cost pressure is with the peso, as I mentioned.

Speaker #1: But also due to the impact that higher metal prices had on our royalties and profit sharing, as well as higher reagent consumption required to process the lower recovery ore that, again, Jody mentioned.

Speaker #1: Despite this, our margins remained robust at a record 60% for the quarter. And costs are expected to trend lower through the back half of the year, as we return to higher-grade and recovery stokes.

Speaker #1: One area we've been seeing cost pressure is with the peso, as I mentioned. We had budgeted the year at an average exchange rate of 19 to 1, but averaged about 17 and a half to 1 through the first quarter.

Andrew Snowden: We had budgeted the year at an average exchange rate of 19 to 1, but averaged about 17.5 to 1 through Q1. With 50% of our operating costs peso denominated, we are sensitive to movements in the exchange rate, and in Q1 this added about $50 an ounce to our cost profile. We have placed further peso hedges now for both 2026 and 2027 to provide additional protection and to mitigate against these fluctuations. We recognize this is a cost pressure we expect will continue for the foreseeable future. Additionally, a number of our peers have seen cost inflation owing to higher diesel prices, and this has been a common question we've received from shareholders over recent months. I did want to just touch on this on this briefly.

Speaker #1: With 50% of our operating costs peso-denominated, we are sensitive to movements in the exchange rate, and in Q1 this added about $50 an ounce to our cost profile.

Speaker #1: We have placed further peso hedges now for both 2026 and 2027 to provide additional protection and to mitigate against these fluctuations, but we recognize this is a cost pressure we expect will continue for the foreseeable future.

Speaker #1: Additionally, a number of our peers have seen cost inflation owing to higher diesel prices, and this has been a common question we've received from shareholders over recent months, and so I didn't want to just touch on this briefly.

Speaker #1: And given our operations are now fully underground, and the majority of our Medialuna fleet is battery electric, diesel costs only make up a small percentage of our cost profile.

Andrew Snowden: Given our operations are now fully underground and the majority of our Media Luna fleet is battery electric, diesel costs only make up a small percentage of our cost profile. In addition, diesel is subsidized in Mexico and to date has only seen an increase of approximately 15% year to date. For context, if prices stayed at this level through the end of the year, we would see less than a $5 an ounce impact to our all-in sustaining costs. Next, just talking briefly about free cash flow. You would have seen that we generated an impressive $157 million for the quarter, and that was after we paid $165 million of taxes and royalties in Q1.

Speaker #1: In addition, diesel is subsidized in Mexico, and to date has only seen an increase of approximately 15% year to date. And so for context, if prices stayed at this level through the end of the year, we would see less than a $5 an ounce impact to our all-in sustaining costs.

Speaker #1: Next, just talking briefly about free cash flow, you would have seen that we generated an impressive $157 million for the quarter, and that was after we paid $165 million of taxes and royalties in Q1.

Speaker #1: Our outlook for free cash flow remains very strong, and the current spot prices were forecasting approximately $650 million of free cash flow to be generated this year.

Andrew Snowden: Our outlook for free cash flow remains very strong, at current spot prices, we're forecasting approximately $650 million of free cash flow to be generated this year. Turning next to slide 12, you can see here this provides a breakdown of our cash flow for the quarter. Our adjusted EBITDA of $159 million was a quarterly record, of course, supported by high metal prices and record margins. This allowed us to fully repay the outstanding debts accumulated during the Media Luna build, while also returning $121 million of cash to shareholders through both the dividend and $111 million of share repurchases.

Speaker #1: And turning next to slide 12, you can see here this provides a breakdown of our cash flow for the quarter. Our adjusted EBITDA of $159 million was a quarterly record, of course supported by high metal prices and record margins.

Speaker #1: And this allowed us to fully repay the outstanding debt accumulated during the Medialuna build, while also returning $121 million of cash to shareholders through both a dividend and $111 million share of share repurchases.

Speaker #1: And I'll speak more on our enhanced return of capital program that we announced last night momentarily. Before we move off the topic of cash flow, though, just as a reminder to everyone of the cash flow seasonality we have, and you can see that here on slide 13.

Andrew Snowden: I'll speak more on our enhanced return of capital program that we announced last night momentarily. Before we move off the topic of cash flow, though, just as a reminder to everyone of the cash flow seasonality we have, and you can see that here on slide 13. I know as the group on the call are aware, Q1 is always our highest cash outflowing quarter of the year as we pay our annual true-up for taxes and royalties, this year amounting to $165 million in total on account of higher metal prices we saw through the course of last year. Q2, we'll see our annual Mexican mandated profit-sharing payment, which we expect will be approximately $38 million this year.

Speaker #1: I know as the group on the call are aware, Q1 is always our highest cash outflowing quarter of the year, as we pay our annual troop for taxes and royalties.

Speaker #1: This year amounting to $165 million in total, on account of higher metal prices we saw through the course of last year. Q2, we'll see our annual Mexican-mandated profit sharing payment, which we expect will be approximately $38 million this year.

Speaker #1: And Q2 will also likely be impacted by lower sales compared to Q1, just given the Q1 benefited from the sale of inventory on hand at the end of the year.

Andrew Snowden: Q2 will also likely be impacted by lower sales compared to Q1, just given the Q1 benefited from the sale of inventory on hand at the end of the year. As usual, we expect Q3 and Q4 to be the highest cash flowing quarters of the year with these annual payments then fully behind us. Next, just turning to slide 14, you can see here an outline of our current liquidity position and despite the significant tax and royalty payments that I mentioned, as well as return of capital program that we've been executing on, our cash balance grew quarter over quarter to $130 million, and we expect this to continue to grow over coming quarters, to at least our minimum balance of $200 million, which is our current target.

Speaker #1: And as usual, we expect Q3 and Q4 to be the highest cash flowing quarters of the year, with these annual payments then fully behind us.

Speaker #1: Next, just turning to slide 14, you can see here an outline of our current liquidity position, and despite the significant tax and royalty payments that I mentioned, as well as return of capital program that we've been executing on, our cash balance grew quarter over quarter to $130 million.

Speaker #1: And we expect this to continue to grow overcoming quarters, to at least our minimum balance of $200 million which is our current target. Following the repayment of the final $30 million of debt outstanding in January, we're once again debt-free, and had available liquidity of $467 million at the end of Q1.

Andrew Snowden: Following the repayment of the final $30 million of debt outstanding in January, we're once again debt-free and have available liquidity of $467 million at the end of Q1. Next, just moving on to capital allocation, you can see on slide 15 that there are four key priorities for our capital allocation. These are all outlined here. Firstly, we're looking to continue to invest in our, in El Morelos property to extend the production profile of the property, and that's supported by $45 million of drilling on the property for this year. We're also investing $100 million of capital to complete the construction of Media Luna North by the end of this year.

Speaker #1: Next, just moving on to capital allocation, and you can see on slide 15 that there are four key priorities for our capital allocation. These are all outlined here.

Speaker #1: Firstly, we're looking to continue to invest in our umbrella property to extend the production profile of the property and that's supported by $45 million of drilling on the property for this year.

Speaker #1: We're also investing $100 million of capital to complete the construction of Medialuna North by the end of this year. Secondly, we're focused on unlocking value across our portfolio of development stage and exploration properties, including Los Reyes in Sinaloa, and our other properties across Chihuahua and Nevada.

Andrew Snowden: Secondly, we're focused on unlocking value across our portfolio of development stage and exploration properties, including Los Reyes in Sinaloa and our other properties across Chihuahua and Nevada, while continuing to look for and seek value-accretive M&A. Thirdly, focusing on our balance sheet, growing our financial strength to a minimum $200 million of cash on hand, and that will provide us both operational and strategic flexibility looking forward. Finally, our shareholder returns, which we've just enhanced, and I'll dive into that next on slide 16. As you will have seen last night, we announced a target to return a total of $350 million to shareholders in 2026 through both an increased dividend and continuing to aggressively buy back shares, which is a strong return, particularly given where our shares are currently trading.

Speaker #1: While continuing to look for and seek value accretive M&A. Thirdly, focusing on our balance sheet, growing our financial strength to a minimum $200 million of cash on hand, and that will provide us both operational and strategic flexibility looking forward.

Speaker #1: And finally, our shareholder returns, which we've just enhanced. And I'll dive into that next on slide 16. And as you will have seen last night, we announced a target to return a total of $350 million to shareholders in 2026 through both an increased dividend and continuing to aggressively buy back shares which is a strong return particularly given where our shares are currently trading.

Speaker #1: As I mentioned at spot prices, we're expecting to generate approximately $650 million of free cash flow this year. And so the $350 million we expect to return to shareholders represents about 55% of this forecasted free cash flow or approximately 40% prior to non-sustaining capital expenditure.

Andrew Snowden: As I mentioned, at spot prices, we're expecting to generate approximately $650 million of free cash flow this year. The $350 million we expect to return to shareholders represents about 55% of this forecasted free cash flow or approximately 40% prior to non-sustaining capital expenditure. The $350 million includes the $121 million returned during Q1 and builds on a total of $165 million that's been returned to shareholders to date since announcing our inaugural return of capital program last November. With this announcement, our dividend was also increased by 7% to $0.16 per share, implying a forward annualized dividend yield of about 1%.

Speaker #1: The $350 million includes the $121 million returned during the first quarter, and builds on the total of $165 million that's been returned to shareholders to date, since announcing our inaugural return of capital program last November.

Speaker #1: With this announcement, our dividend was also increased by 7% to 16 cents per share implying a forward annualized dividend yield of about 1%. Now, our intention with this announcement was to provide more transparency and clarity on the magnitude of capital we expect to return this year.

Andrew Snowden: Our intention with this announcement was to provide more transparency and clarity on the magnitude of capital we expect to return this year, and we feel that returning over 50% of our free cash flow to shareholders is a meaningful way to generate value for our shareholders, with the remaining amount being reinvested across other capital allocation priorities in our portfolio. Finally, before I open up the line for questions, although Jody is not retiring for another month, this will be her last earnings call before I step into the President and CEO seat next month. Anything I say here will not do her leadership and tenure at Torex justice, but I do want to take a moment just to acknowledge Jody publicly in front of the analysts and investors on the line for all she has done and accomplished at Torex over the past eight years.

Speaker #1: And we feel that returning over 50% of our free cash flow to shareholders is a meaningful way to generate value for our shareholders with a remaining amount being reinvested across other capital allocation priorities in our portfolio.

Speaker #1: Finally, before I open up the line for questions, although Jody is not retiring for another month, this will be her last earnings call before I step into the president and CEO seat next month.

Speaker #1: Anything I say here will not do her leadership and tenure at Torex Justice. But I do want to take a moment just to acknowledge Jody publicly in front of the analysts and investors on the line for all she has done and accomplished at Torex over the past eight years.

Speaker #1: She's made a real difference to the lives of so many in Mexico and beyond, and will be greatly missed by everyone across the team here at Torex.

Andrew Snowden: She's made a real difference to the lives of so many in Mexico and beyond, and will be greatly missed by everyone across the team here at Torex, as well as I'm sure all of our stakeholders, including those on the line today. With that, I'll open up the line for questions.

Speaker #1: As well as I'm sure all of our stakeholders including those on the line today. And with that, I'll open up the line for questions.

Operator 3: Thank you. The first question comes from Cosmos Chiu with CIBC. Please go ahead.

Operator: Thank you. To join the question que, you may press star then one on your telephone keypad. You will hear tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any key. To withdraw your question, please press star then two. The first question comes from Cosmos Chiu with CIBC. Please go ahead.

Speaker #2: Thank you. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request.

Speaker #2: If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question comes from Cosmo Shu with CIBC.

Speaker #2: Please go ahead.

Speaker #3: Thank you. Thanks, Jody. All the best to you and enjoy retirement. And Andrew, congratulations. And here it comes to questions. Maybe my first question is on the enhanced return of capital program.

Cosmos Chiu: Thank you. Thanks, Jody. All the best to you. Enjoy retirement. Andrew, congratulations. Here it comes to questions. Maybe my first question is on the enhanced return of capital program. You know, as you mentioned, you really talk about the intention in terms of capital return in 2026. There wasn't any mention in terms of what happens beyond 2026. I guess maybe a question to Andrew. Is the intent of the enhanced program to be maintained into, you know, future years? Or is it something that you would, I guess, look at, year over year?

Speaker #3: As you mentioned, you really talk about the intention in terms of capital return in 2026. But there wasn't any mention in terms of what happens beyond 2026.

Speaker #3: I guess maybe a question to Andrew, is the intent of the enhanced program to be maintained into future years? Or is it something that you would, I guess, look at year over year?

Speaker #4: Yep. Thanks, Todd, for the question. And that's a good question. So our intent with the return of capital announcement last night was to provide guidance on what to expect in 2026.

Andrew Snowden: Thanks, Cos, for the question and a good question. Our intent with the return of capital announcement last night was to provide guidance on what to expect in 2026. We will be looking at that program annually to determine what our annual commitment will be each year going forward. Just to note though, of course, our return of capital program does include a dividend, and that quarterly dividend is expected to be declared every quarter going forward. That's something that you can expect, and we would maintain in future years. In addition to that, we'll be providing annual guidance on what to expect from a share buyback perspective.

Speaker #4: And so we will be looking at that program annually to determine what our annual commitment will be each year going forward. Just to note, though, of course, our return of capital program does include a dividend, and that quarterly dividend is expected to be declared every quarter going forward.

Speaker #4: And so that's something that you can expect we would maintain in future years. And then in addition to that, we'll be providing annual guidance on what to expect from a share buyback perspective.

Speaker #3: Great. And then Andrew, maybe if you can talk about how you came up with that sort of 55% of free cash flow being returned back to investors.

Cosmos Chiu: Great. Then, you know, Andrew, maybe if you can talk about how you came up with that sort of 55% of free cash flow being returned back to investors. We've seen from other, you know, companies in your peer group, they've talked about 35% return, 40% return. 55% is certainly on the higher end. You know, maybe can you talk about how you came up with that number?

Speaker #3: We've seen from other companies in your peer group, they've talked about 35% return, 40% return, 55% is certainly on the higher end. Maybe can you talk about how you came up with that number?

Speaker #4: Look, I think for us, Todd, I mean, what's very compelling is where our shares are currently trading. We're currently trading at a significant discount compared to our peer group.

Andrew Snowden: Look, I think for us, Cos, I mean, what's very compelling is where our shares are currently trading. We're currently trading at a significant discount compared to our peer group, it's a very compelling business case to be buying back our shares at this price. That helps motivate us to be very aggressive in our share buybacks this year. You know, that said, we are looking to maintain, you know, in and around 50% of our free cash flow for our own balance sheet. We're looking to both return that capital to shareholders as well as grow our cash balance and liquidity on the balance sheet to deliver on broader capital allocation priorities.

Speaker #4: And so it's a very compelling business case to be buying back our shares at this price. And so that helps motivate us to be very aggressive in our share buybacks this year.

Speaker #4: That said, we are looking to maintain in and around 50% of our free cash flow for our own balance sheet. And so we're looking to both return that capital to shareholders as well as grow our cash balance and liquidity on the balance sheet to deliver on broader capital allocation priorities.

Speaker #4: And so this just felt like the right balance for us given the opportunity for our share buybacks as well as our broader strategic priorities.

Andrew Snowden: This just felt like the right balance for us, given the opportunity for our share buybacks as well as our broader strategic priorities.

Speaker #3: Great. Maybe switching gears a little bit, Los Reyes. Likely you won't be able to give me a timeline in terms of when you can potentially return to site.

Cosmos Chiu: Great. Maybe switching gears a little bit at Los Reyes. You know, likely you won't be able to give me a timeline in terms of when you can potentially return to site. If you can, that's great. If not, then, could you maybe walk us through, you know, when you do return to site, what can we expect? Are you gonna bring drills back? Are you gonna start drilling once again? Like, what can we expect? Is there a plan in place in terms of what we can expect once you get back to site? Then, I guess there's been some news in terms of a change in government at in Sinaloa. The governor of Sinaloa had recently resigned.

Speaker #3: But if you can, that's great. If not, then could you maybe walk us through when you do return to site, what can we expect?

Speaker #3: Are you going to bring drills back? Are you going to start drilling once again? What can we expect? Is there a plan in place in terms of what we can expect once you get back to site?

Speaker #3: And then I guess there's been some news in terms of a change in government in Sinaloa. The government of Sinaloa had recently resigned. Is there any kind of read-through in terms of the asset level and how you view the timeline of your potential return?

Cosmos Chiu: Is there any kind of read-through in terms of the asset level and how you view, you know, the timeline of your potential return? Any, anything that we should read into it?

Speaker #3: Anything that we should read into it?

Andrew Snowden: I'll take this question, Cos. A few questions in there. Firstly, just to validate your assumption, Cos, we're not in a position to provide a specific date on when we'll be returning to site. I don't think it's appropriate to put pressure on the team. We'll make that decision at the right time. That said, though, I'd say our discussions at all level of government, both locally and federally, has all been very positive and constructive. We're feeling very well supported across all levels of government and are making positive steps forward to create the conditions to access site. You know, we're hoping to get to site obviously sooner rather than later, but the timing is still to be determined.

Speaker #4: So I'll take this question, Todd, and so a few questions in there. Firstly, just to validate your assumption, Todd, we're not in a position to provide a specific date on when we'll be returning to site.

Speaker #4: I don't think it's appropriate to put pressure on the team. We'll make that decision at the right time. And that said, though, I'll say our discussions at all levels of government, both locally and federally, has all been very positive and constructive.

Speaker #4: We're feeling very well supported across all levels of government and are making positive steps forward to create the conditions to access site. We're hoping to get to site, obviously, sooner rather than later.

Speaker #4: But the timing is still would still be to be determined. When we do get to site, though, our plans are already set. We'll be looking to get the drillings turning fairly imminently once we do get access to site.

Andrew Snowden: When we do get to site though, our plans are already set. We'll be looking to get the drills turning fairly imminently once we do get access to site. The drill rigs are actually already on site. They were not removed from site by Prime when they stood down the workforce over 1 year ago. The drills will be ready to turn fairly quickly after access is available. We'll also be looking to do work to support advancing our PFS. There's various other sample testing that we'll look to do to be able to support column testing and other metallurgical work.

Speaker #4: The drill rigs are actually already on site. They were not removed from site by Prime when they stood down the workforce over a year ago.

Speaker #4: And so the drills will be ready to turn fairly quickly after access is available. And then we'll also be looking to do work to support advancing our PFS.

Speaker #4: And so, there’s various other sample testing that we’ll look to do to be able to support column testing and other metallurgical work. We’ll want to fully assess the initial plans of plant location to make sure that location makes sense based on geotech conditions.

Andrew Snowden: We'll want to fully assess the initial plans of plant location to make sure that that location makes sense based on geotech conditions, and do further sampling and testing at site. The work will be twofold, both drilling to continue to support the resource base as well as work to support the PFS.

Speaker #4: And do further sampling and testing at site. And so the work will be twofold, both drilling to continue to support the resource base, as well as work to support the PFS.

Speaker #3: Great. And then maybe one last question immediately, Luna North. As you mentioned, production start in late 2026. There's a number of kind of items being progressed at this point in time.

Cosmos Chiu: Great. Then maybe one last question. Media Luna North, as you mentioned, you know, production start in late 2026. There's a number of kinda items being progressed at this point in time. There's the main access ramp, a haulage drift, ventilation. I guess my question is there a critical path? Is there certain items that we need to make sure that you complete on time to hit that target in terms of late 2026 production?

Speaker #3: There's the main access ramp, a haulage drift, ventilation. But I guess my question is, is there a critical path? Is there a certain items that we need to make sure that you complete on time to hit that target in terms of late 2026 production?

Speaker #4: Yeah. I mean, there's a number of key milestones in the plan, Todd, and as Jody mentioned today, everything is tracking to plan. I would say, I mean, at this point, the key critical milestone, which is imminent here, is a breakthrough of the north vent addit.

Andrew Snowden: Yeah. I mean, there's a number of key milestones in the plan, Cos. As Jody mentioned today, everything is tracking to plan. I would say, I mean, at this point, the key critical milestone, which is imminent here, is the breakthrough of the North Vent Adit. It's important for us to get access to additional ventilation to be able to commence the broader ramp development and open up the mine. That's in plan for May of this year, and that will be a key milestone to then start building out the mine. In addition to that, there's obviously the procurement activities that are underway.

Speaker #4: It's important for us to get access to additional ventilation to be able to commence the broader ramp development and open up the mine. That's in plan for May of this year.

Speaker #4: And that will be a key milestone to then start building out the mine. In addition to that, there's obviously the procurement activities that are underway.

Speaker #4: All of our long lead items have already been orders have already been put in place. And we've got commitments from those vendors to be able to deliver online with our schedule.

Andrew Snowden: All of our long lead items have already been put, orders have already been put in place. And we've got commitments from those vendors to be able to deliver online with our schedule. Until that equipment obviously arrives at site, there's always some risk associated with that. As we did with Media Luna, we're working very closely with our suppliers to make sure that they adhere to their commitments to us. That work is ongoing. At this point, everything that we're seeing is supportive of us, producing first ore in December of this year.

Speaker #4: But until that equipment, obviously, arrives at site, there's always some risk associated with that. But as we did with MediaLuna, we're working very closely with our suppliers to make sure that they adhere to their commitments to us.

Speaker #4: And so that work is ongoing. But at this point, everything that we're seeing is supported as producing first ore in December of this year.

Speaker #3: Great. Thanks, Andrew. Those are all the questions I have. Jody, once again, thank you for all the years that Torex and all the best.

Cosmos Chiu: Great. Thanks, Andrew. Those are all the questions I have. Jody, once again, thank you for all the years that, you know, at Torex. All the best.

Speaker #4: Thanks, Todd.

Andrew Snowden: Thanks, Cos.

Speaker #1: The next question comes from Don Demarco with National Bank. Please go ahead.

Operator 3: The next question comes from Don DeMarco with National Bank. Please go ahead.

Operator: The next question comes from Don DeMarco with National Bank. Please go ahead.

Speaker #5: Thank you, operator. And yeah, I'd just like to echo Cosmos' comments as well. Jody best wishes on next steps. First question, great to see the shareholder return program.

Don DeMarco: Thank you, operator. Yeah, I'd just like to echo Cosmos comments as well. Jody, best wishes on next steps. First question, great to see the shareholder return program. With that, the USD 200 million minimum cash balance seems readily achievable, especially like looking to the high free cash flow quarters in H2 and beyond. Is this minimum adequate dry powder to develop Los Reyes or even for M&A, and given cash could provide a bidding advantage on some deals?

Speaker #5: With that, the $200 million minimum cash balance seems readily achievable, especially looking to the high free cash flow quarters in H2 and beyond. Is this minimum adequate dry powder to develop Los Reyes?

Speaker #5: Or even for M&A, given cash could provide a bidding advantage on some deals?

Andrew Snowden: Look, Don, I'll take that question again. The $200 million we see as being a minimum balance that can provide us good operational flexibility as we work through seasonality in our cash flow looking forward. We will naturally, as you rightly point out, we will naturally build a cash balance beyond that through the course of this year. In addition, we do have a fully undrawn $350 million revolver. The combination of where our cash will end at the end of this year and the available credit facility that we have, we feel provides us good flexibility to be able to support our broader strategic initiatives.

Speaker #4: Look, Don, I'll take that question again. The $200 million we see as being a minimum balance that can provide us good operational flexibility as we work through, I suppose, seasonality in our cash flow, looking forward.

Speaker #4: We will naturally, as you rightly point out, we will naturally build a cash balance beyond that through the course of this year. And in addition, we do have a fully undrawn $350 million revolver.

Speaker #4: And so the combination of where our cash will end at the end of this year, and the available credit facility that we have, we feel provides us good flexibility to be able to support our broader strategy of thinking about M&A more broadly. Obviously, if opportunities do come up that are beyond that, we've got lots of debt capacity that we could take on to support the right deal at the right time.

Andrew Snowden: You know, as we kind of think about M&A more broadly, obviously, if opportunities do come up that are beyond that, we've got lots of debt capacity that we could take on to support the right deal at the right time. We feel we've got the balance sheet to be able to support whatever strategic priorities we are looking to focus on going forward.

Speaker #4: And so we feel we've got the balance sheet to be able to support whatever strategic priorities we are looking to focus on going forward.

Speaker #1: Excellent.

Speaker #5: Okay. Great.

Don DeMarco: Okay, great.

Speaker #4: All right. Yeah. And sorry, just to answer your question about Los Reyes, we'll be coming out with our PEA on that, of course, next month.

Andrew Snowden: Yeah. Sorry, just to answer your question about Los Reyes, you know, we'll be coming out with our PEA-

Don DeMarco: Yeah

Andrew Snowden: on that, of course, of course, next month. As we've talked about in the past, we expect capital to be in the region of $500 million, and so that's the level of cash that we can build up very quickly here. The timing of that would be in the 2029, 2030 period. A significant period of time here to build cash to be able to support that build, and we're very comfortable with that path forward.

Speaker #4: As we've talked about in the past, we expect capital to be in the region of $500 million. And so that's a level of cash that we can build up very quickly here in the timing of that would be in the 29, 2030 period.

Speaker #4: And so a significant period of time here to build cash to be able to support that build. And we're very comfortable with that path forward.

Speaker #5: Okay, that's helpful. Then, looking at Media Luna—given that you achieved the Media Luna mining rates ahead of schedule—is there any favorable read-through to higher production this year, maybe even possibly toward the upper end of the guidance range?

Don DeMarco: Okay, that's helpful. Looking at Media Luna, you know, given that you achieved the Media Luna mining rates ahead of schedule, is there any read-through, favorable read-through to higher production this year, maybe even possibly toward the upper end of the guidance range?

Andrew Snowden: Well, I mean, there's a potential read-through there, Don DeMarco, in us being able to achieve mining rates at Media Luna beyond 7,500 tons per day. That's something that we're working through. I mean, today, I would say assuming a steady state of 7,500 tons per day is a good go forward plan to include in your models and your assumptions. In terms of overall production, I wouldn't expect that we would be above our guidance range.

Speaker #4: Well, I mean, there's a potential read-through there, Don, in us being able to achieve mining rates at MediaLuna beyond 7,500 tons per day. And so that's something that we're working through.

Speaker #4: I mean, today, I would say, assuming a steady state of 7,500 tons per day is a good go-forward plan to include in your models and your assumptions.

Speaker #4: In terms of overall production, I wouldn't expect that we would be above our guidance range. I think we're very comfortable with our guidance range.

Andrew Snowden: I think we're very comfortable with our guidance range. That is although we're ahead of schedule on hitting the rates at Media Luna, if you remember, I think in Q1, our initial target was to be at 7,000 tons per day. We achieved 7,500 tons per day. The incremental ore there will not have a meaningful impact on our annual production.

Speaker #4: And that is, although we're ahead of schedule on hitting the rates at MediaLuna, if you remember, I think in Q1, our initial target was to be at 7,000 tons per day.

Speaker #4: And we achieved 7,500 tons per day. And so the incremental ore there will not have a meaningful impact on our annual production.

Speaker #5: Okay. Thanks. And then just as a final question, looking to your expiration update from last week, there was some comments on the prospect of drill target at Scala.

Don DeMarco: Okay, thanks. Then just as a final question, looking to your exploration update from last week, there was some comments on the prospect of drilled target, Atzcala. Are you getting any initial indications from the modest drilling that's been done so far of its potential in terms of the standalone oxide deposit and so on? Is that really something that we need more drilling to verify?

Speaker #5: Are you getting any initial indications from the modest drilling that's been done so far of its potential in terms of the standalone oxide deposit and so on?

Speaker #5: Or is that really something that we need more drilling to verify?

Speaker #4: Yeah. Look, it's too early, Don, to be able to share any specifics at this point. We will have more data that we can share later on this year.

Andrew Snowden: Look, it's too early, Don, to be able to share any specifics. At this point, we will have more data that we can share later on this year. I know we've had discussions in the past about the real potential that we see within Atzcala, and everything we're seeing today continues to support the potential that we hope we can prove out in Atzcala. We'll have more data that we can share in H2 of this year once we undertake further drilling.

Speaker #4: But I know we've had discussions in the past about the real potential that we see within a scalar. And everything we're seeing today continues to support the potential that we hope we can prove out in a scalar.

Speaker #4: But we'll have more data that we can share in the second half of this year once we undertake further drilling.

Speaker #5: Okay. Great. Well, thanks again for taking my questions. That's all from me. Good luck with the rest of the quarter.

Don DeMarco: Okay, great. Well, thanks again for taking my questions. That's all for me. Good luck with the rest of the quarter.

Speaker #4: Thanks, Don.

Andrew Snowden: Thanks, Don.

Speaker #1: Once again, if you have a question, please press star, then one. The next question comes from Lauren McConnell with Paradigm Capital. Please go ahead.

Operator 3: Once again, if you have a question, please press star then one. The next question comes from Lauren McConnell with Paradigm Capital. Please go ahead.

Operator: Once again, if you have a question, please press star then one. The next question comes from Lauren McConnell with Paradigm Capital. Please go ahead.

Speaker #6: Good morning, guys. And thank you for taking my questions. And congratulations, Jody, again on the retirement. Just talking about the plant at Morales, you guys have contemplated taking it back up to that historical 13,000-ton-per-day levels.

Lauren McConnell: Good morning, guys, and thank you for taking my questions. Congratulations, Jody, again on the retirement. Just, you know, talking about the plant at Morelos. You know, you guys have contemplated, you know, taking it back up to that historical 13,000 ton per day levels. Can you just remind us of sort of when that decision could possibly be made and sort of what the key factors going into that are?

Speaker #6: Can you just remind us of sort of when that decision could possibly be made and sort of what the key factors going into that are?

Speaker #4: Yep. I can take that question again, Lauren. Good morning. And thanks for the question. And so that's work that's underway now, clearly in the current gold price environment.

Andrew Snowden: Yep. I can take that question again, Lauren. Good morning, and thanks for the question. That's work that's underway now. Clearly, in the current gold price environment, the business case is potentially compelling here. There's work that we need to do both to understand the engineering that's required to bring the plant back up to those historic levels. As well as understanding the broader impact that that decision could have on our go-forward mine plan and resource base. What we're looking to do through the course of this year is the support of having a discussion and becoming decisional, I would say, in Q1 of next year.

Speaker #4: The business case is potentially compelling here. But there's work that we need to do both to understand the engineering that's required to bring the plant back up to those historic levels as well as understanding the broader impact that that decision could have on our go-forward mine plan and resource base.

Speaker #4: And so the work we're looking to do through the course of this year is to support us having a discussion and becoming decisional, I would say, in Q1 of next year.

Speaker #6: Okay. Perfect. That's really helpful. And then if we were to factor in or think about factoring in, it would be more like a 2028 timeframe then.

Lauren McConnell: Okay, perfect. That's really helpful. Then, you know, if we were to factor in or think about factoring in, it would be more like a 2028 timeframe then, if you did move forward with it?

Speaker #6: If you did move forward with it.

Speaker #4: Yeah. I think that's a fair assumption, Lauren. Correct.

Andrew Snowden: Yeah. I think that's.

Lauren McConnell: Okay

Andrew Snowden: That's a fair assumption, Lauren. Correct.

Speaker #6: And then just a quick question on the MediaLuna North. When you do tie that in, I just want to confirm that there's no plant downtime and there's no MediaLuna mining rate downtime during that tie-in.

Lauren McConnell: Just a quick question on Media Luna North. When you do tie that in, I just want to confirm that there's no plant downtime and there's no Media Luna mining rate downtime during that tie-in.

Andrew Snowden: That's correct, Lauren. There's no impact to the plant in any way and no downtime within the Media Luna mine either.

Speaker #4: That's correct, Lauren. There's no impact to the plants in any way. And no downtime within the MediaLuna mine either.

Andrew Snowden: That's correct, Lauren. There's no impact to the plant in any way and no downtime within the Media Luna mine either.

Speaker #6: Okay. Perfect. Thank you. That's all from me.

Lauren McConnell: Okay, perfect. Thank you. That's all for me.

Andrew Snowden: Thanks, Lauren.

Speaker #1: As there appears to be no more questions, as there appears to be no more questions, this concludes today's conference call. You may disconnect your lines.

Operator 3: As there appears to be no more questions, this concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: As there appears to be no more questions, this concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.