Q1 2026 Amerigo Resources Ltd Earnings Call

April 30, 2026

Operator: to the Amerigo Resources Ltd. Q1 2026 Results Conference Call. Thank you. I would now like to turn the call over to Graham Farrell, NorthStar Investor Relations. Please go ahead.

Operator: To the Amerigo Resources Ltd. Q1 2026 Results Conference Call. Thank you. I would now like to turn the call over to Graham Farrell, NorthStar Investor Relations. Please go ahead.

Speaker #1: The AMERIGO RESOURCES Q1 2026 results 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.

Speaker #1: If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again.

Speaker #1: Thank you. I would now like to turn the call over to Graham Farrell, NorthStar Investor Relations. Please go ahead.

Speaker #2: Thank you, operator. Good afternoon and welcome, everyone, to AMERIGO's quarterly conference call to discuss the company's financial results for the first quarter of 2026.

Graham Farrell: Thank you, operator. Good afternoon, welcome everyone to Amerigo's quarterly conference call to discuss the company's financial results for Q1 2026. We appreciate you joining us today. This call will cover Amerigo's financial and operating results for Q1 ended 31 March 2026. Following our prepared remarks, we will open the conference call to a question and answer session. Our call today will be led by Amerigo's President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties.

Speaker #2: We appreciate you joining us today. This call will cover AMERIGO's financial and operating results for the first quarter ended March 31st, 2026. Following our prepared remarks, we will open the conference call to a question-and-answer session.

Speaker #2: Our call today will be led by AMERIGO's president and chief executive officer, Aurora Davidson, along with the company's chief financial officer, Carmen Amezquita. Before we begin our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements.

Speaker #2: Forward-looking statements may include but are not necessarily limited to financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties.

Speaker #2: The company's actual results may differ significantly from those projected or suggested by any forward-looking statements. Due to a variety of factors which are discussed in detail in our CDAR filings, I will now hand the call over to Aurora Davidson.

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

Speaker #2: Please go ahead, Aurora.

Speaker #3: Thank you for taking the time to listen to AMERIGO's Q1 2026 earnings call. The first quarter of 2026 was operationally and financially strong and consistent with what shareholders should expect.

Aurora Davidson: Thank you for taking the time to listen to Amerigo's Q1 2026 earnings call. The Q1 of 2026 was operationally and financially strong and consistent with what shareholders should expect of Amerigo. Our operation at MVC continued to operate steadily, predictably, and safely through market noise and macro uncertainty. Today, I'm taking a different approach to my comments, and I wanted to first share with you where I believe value is ultimately created at Amerigo. One item sits beneath everything else, workplace safety. During the quarter, MVC reached 4 full years without a single lost-time accident. This is not an abstract milestone. It means that for 4 years, 291 MVC employees came to work, did demanding industrial jobs, and went home safely to their families.

Aurora Davidson: Thank you for taking the time to listen to Amerigo's Q1 2026 earnings call. The Q1 of 2026 was operationally and financially strong and consistent with what shareholders should expect of Amerigo. Our operation at MVC continued to operate steadily, predictably, and safely through market noise and macro uncertainty. Today, I'm taking a different approach to my comments, and I wanted to first share with you where I believe value is ultimately created at Amerigo. One item sits beneath everything else, workplace safety. During the quarter, MVC reached four full years without a single lost-time accident. This is not an abstract milestone. It means that for four years, 291 MVC employees came to work, did demanding industrial jobs, and went home safely to their families.

Speaker #3: Of AMERIGO. Our operation at NBC continued to operate steadily, predictably, and safely. Through market noise and macro uncertainty, today I'm taking a different approach to my comments, and I wanted to first share with you where I believe value is ultimately created at AMERIGO.

Speaker #3: One item seats beneath everything else. Workplace safety. During the quarter, NBC reached four full years without a single lost-time time accident. This is not an abstract milestone.

Speaker #3: It means that for four years, 291 NBC employees came to work, did demanding industrial jobs, and went home safely to their families. This safety record reflects thousands of routine decisions made correctly by operators, supervisors, and management every single day.

Aurora Davidson: This safety record reflects thousands of routine decisions made correctly by operators, supervisors, and management every single day. Remember, this record refers to any injury that keeps someone from coming to work, not just one that might negatively impact operations. This tells you something essential about this business that you, the shareholders, own. MVC is a safe operation. A safe operation is a disciplined operation. A disciplined operation is a reliable operation, and reliable operations generate durable cash flow. Durable cash flow brings me to something we can connect directly to MVC safety record, our recent performance dividend. Based on our Q1 operating performance and consistent with Amerigo's capital return strategy, we announced a CAD 0.16 performance dividend a few days ago.

Speaker #3: And remember, this record refers to any injury that keeps someone from coming to work, not just one that might negatively impact operations. This tells you something essential about this business that you, the shareholders, own.

Speaker #3: NBC is a safe operation. A safe operation is a disciplined operation. A disciplined operation is a reliable operation. And reliable operations generate durable cash flow.

Speaker #3: Durable cash flow brings me to something we can connect directly to NBC's safety record. Our recent performance dividend. Based on our Q1 operating performance and consistent with AMERIGO's capital return strategy, we announced a Canadian 16-cent performance dividend a few days ago.

Speaker #3: Those two things, four years without lost-time accidents and a performance dividend in the same amount as four quarterly dividends, are not coincidences. And are not independent of each other.

Aurora Davidson: Those two things, 4 years without lost-time accidents and a performance dividend in the same amount as 4 quarterly dividends, are not coincidences and are not independent of each other. The performance dividend is not simply a financial gesture layered on top of the business at a time of high copper prices. It is the outcome of how the business is run. When an asset operates safely, steadily, and without disruption, it does not demand surprise infusions of capital, does not consume management's attention to firefighting problems, and does not introduce additional volatility into cash flow. That extra stability gives us the confidence to maximize our return of capital to shareholders when performance supports it without compromising the balance sheet or the long-term life of the business. This is the essence of our performance dividend.

Aurora Davidson: Those two things, four years without lost-time accidents and a performance dividend in the same amount as 4th quarterly dividends, are not coincidences and are not independent of each other. The performance dividend is not simply a financial gesture layered on top of the business at a time of high copper prices. It is the outcome of how the business is run. When an asset operates safely, steadily, and without disruption, it does not demand surprise infusions of capital, does not consume management's attention to firefighting problems, and does not introduce additional volatility into cash flow. That extra stability gives us the confidence to maximize our return of capital to shareholders when performance supports it without compromising the balance sheet or the long-term life of the business. This is the essence of our performance dividend.

Speaker #3: The performance dividend is not simply a financial gesture layered on top of the business at a time of high copper prices. It is the outcome of how the business is run.

Speaker #3: When an asset operates safely, steadily, and without disruption, it does not demand surprise infusions of capital, does not consume management's attention to firefighting problems, and does not introduce additional volatility into cash flow.

Speaker #3: That extra stability gives us the confidence to maximize our return of capital to shareholders when performance supports it. Without compromising the balance sheet or the long-term life of the business.

Speaker #3: This is the essence of our performance dividend. At AMERIGO, the return of capital is the natural consequence of a simple business model. Consistently well-executed in a disciplined way, a single asset operation with no growth capital burden, and a company managed to generate cash across cycles.

Aurora Davidson: At Amerigo, our return of capital is the natural consequence of a simple business model, consistently well-executed in a disciplined way, a single asset operation with no growth capital burden, and a company managed to generate cash across cycles. Q1 reaffirmed the value of that model. Now, let me spend a few minutes on the quarterly operational results. Q1 unfolded exactly according to plan. We delivered solid production and completed our annual maintenance shutdown without disruption or compromising safety or reliability. Plant availability was strong, costs came in well below expectations, and performance exceeded our internal quarterly production targets. Maintenance quarters are challenging ones, and I was very pleased with how the team executed. Q1 is expected to be the lowest production quarter of the year due to the planned shutdown, and we still generated very strong operational results, which underpin the financial results released yesterday.

Speaker #3: Q1 reaffirmed the value of that model. Now, let me spend a few minutes on the quarterly operational results. Q1 unfolded exactly according to plan.

Speaker #3: We delivered solid production, and completed our annual maintenance shutdown without disruption or compromising safety or reliability. Plant availability was strong. Costs came in well below expectations, and performance exceeded our internal quarterly production targets.

Speaker #3: Maintenance quarters are challenging ones. And I was very pleased with how the team executed. Q1 is expected to be the lowest production quarter of the year, due to the planned shutdown, and we still generated very strong operational results, which underpin the financial results released yesterday.

Speaker #3: I will not spend much time on the financial results as Carmen will walk us through them. Sticking to the headlines, Q1 was an exceptionally strong quarter for AMERIGO, particularly given the lower production impact from the plant shutdown.

Aurora Davidson: I will not spend much time on the financial results as Carmen will walk us through them. Sticking to the headlines, Q1 was an exceptionally strong quarter for Amerigo, particularly given the lower production impact from the plant shutdown. Net income was CAD 14.7 million, EBITDA was CAD 32.8 million, and free cash flow was CAD 14.5 million. These financial results were fueled by the operational results previously discussed. The strongest LME copper prices on record for any given quarter and an MVC Cash cost of $1.82 per pound, well below our guided annual Cash cost. Our production and Cash cost guidance for the year remains unchanged. During Q1, the three tools of the capital return strategy were used.

Speaker #3: Net income was 14.7 million. EBITDA was 32.8 million. And free cash flow was 14.5 million. This financial results were fueled by the operational results previously discussed.

Speaker #3: The strongest L&E copper prices on record for any given quarter and an NBC cash cost of $1.82 per pound, well below our guided annual cash cost.

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Speaker #3: Our production and cash cost guidance for the year remains unchanged. During Q1, the three tools of the capital return strategy were used. A performance dividend of 5 cents Canadian was paid in January.

Aurora Davidson: A performance dividend of CAD 0.05 was paid in January, a quarterly dividend of CAD 0.04 was paid in March. Through the quarter, Amerigo retired 1.5 million shares. In total, CAD 16.5 million was allocated to the CRS in Q1. I have received many emails from shareholders asking how current global events impact our operation and costs. The short answer is that to date, the impact on Amerigo has been marginal, and we do not expect that to change. The escalation of the conflict involving Iran has very real second-order effects, particularly to energy markets and industrial inputs. In Chile, this has been reflected in higher diesel prices and a sharp increase in sulfuric acid prices, which are widely used across the copper industry.

Speaker #3: A quarterly dividend of 4 cents Canadian was paid in March. And through the quarter, AMERIGO retired 1.5 million shares. In total, 16.5 million was allocated to the CRS in Q1.

Speaker #3: I have received many emails from shareholders asking how current global events impact our operation and costs. The short answer is that to date, the impact on AMERIGO has been marginal.

Speaker #3: And we do not expect that to change. The escalation of the conflict involving Iran has very real second-order effects. Particularly through energy markets and industrial inputs.

Speaker #3: In Chile, this has been reflected in higher diesel prices. And a sharp increase in sulfuric acid prices, which are widely used across the copper industry.

Speaker #3: Sulfuric acid is a critical input for SXEW operations. And the disruption of supply routes combined with tighter export availability has driven significant price escalation.

Aurora Davidson: Sulfuric acid is a critical input for SXEW operations, and the disruption of supply routes, combined with tighter export availability, has driven significant price escalation. MVC does not use sulfuric acid in its process. The acid price escalation that's featured so prominently in industry discussions has no impact on MVC's operating performance or cost structure. This installation is not temporary, it is permanent. I should note that around 20% of the global copper production comes from SXEW processes, so we can add acid scarcity to the list of fundamental reasons for a tightening copper market moving forward. As a result of the conflict, diesel prices in Chile have increased substantially. Diesel accounts for only 5% of MVC's total energy consumption, with the majority of our energy coming from electricity under a long-term contract from 100% renewable sources.

Speaker #3: However, NBC does not use sulfuric acid in its process. The acid price escalation that's featured so prominently in industry discussions has no impact on NBC's operating performance or cost structure.

Speaker #3: This insulation is not temporary. It is permanent. I should note that around 20% of the global copper production comes from SXEW processes. So we can add acid scarcity to the list of fundamental reasons for a tightening copper market moving forward.

Speaker #3: Also, as a result of the conflict, diesel prices in Chile have increased substantially. However, diesel accounts for only 5% of NBC's total energy consumption, with the majority of our energy coming from electricity under a long-term contract from 100% renewable sources.

Speaker #3: That means that the economic impact of diesel price movements is not material to NBC's overall cost profile. Carmen will discuss the cost impact of current diesel prices further.

Aurora Davidson: That means that the economic impact of diesel price movements is not material to MVC's overall cost profile. Carmen will discuss the cost impact of current diesel prices further. Hopefully, this helps you understand why MVC was able to post excellent cash costs at a time when many operators faced rising input costs and volatility driven by factors outside their control. Looking forward, in 2026, we expect MVC's operating profile and cost inputs to remain consistent. While volatility in geopolitics and commodity markets may persist, MVC is in a strong position, with limited exposure to the most volatile cost inputs due to the structure of our business. I will comment briefly on copper price performance so far in 2026.

Speaker #3: Hopefully, this helps you understand why NBC was able to post excellent cash cost at a time when many operators faced rising input costs and volatility-driven by factors outside their control.

Speaker #3: Looking forward in 2026, we expect NBC's operating profile and cost inputs to remain consistent. While volatility in geopolitics and commodity markets may persist, NBC is in a strong position with limited exposure to the most volatile cost inputs due to the structure of our business.

Speaker #3: I will comment briefly on copper price performance so far in 2026. Copper entered the year with strong momentum. With a sharp upward price movement in January, supported by concerns about supply reliability, continuing line disruption from 2025, and continued investor positioning around the long-term electrification theme.

Aurora Davidson: Copper entered the year with strong momentum, with a sharp upward price movement in January, supported by concerns about supply reliability, continuing mine disruption from 2025, and continued investor positioning around the long-term electrification theme. As we move into February and early March, copper remained well-supported, but price action became more volatile. Markets began to weigh the strong long-term narrative against near-term uncertainty. This uncertainty included higher energy prices, rising interest rates, and geopolitical risks. The escalation of the Iran conflict added another layer of complexity and volatility. Copper prices reacted, as did other industrial commodities, as market participants sought safety and liquidity. By the second half of March, copper prices had pulled back from their January highs, touched quarterly lows, they stabilized.

Speaker #3: As we move into February and early March, copper remained well-supported, but price action became more volatile. Markets began to weigh the strong long-term narrative against near-term uncertainty.

Speaker #3: This uncertainty included higher energy prices, rising interest rates, and geopolitical risks. The escalation of the Iran conflict then added another layer of complexity and volatility.

Speaker #3: Copper prices reacted as did other industrial commodities. As market participants sought safety and liquidity. By the second half of March, copper prices had pulled back from their January highs, touched quarterly lows, but then they stabilized.

Speaker #3: I should point out that even after that correction, prices have remained well above historical averages and materially higher than levels seen through most of 2024 and early 2025.

Aurora Davidson: I should point out that even after that correction, prices have remained well above historical averages and materially higher than levels seen through most of 2024 and early 2025. Now, at the end of April, although volatility has not disappeared, copper prices appear to be supported by tight concentrate markets and a continued focus on medium-term supply constraints. The key point from management's perspective is this: 2026 has not been a straight line price environment. A strong start, significant volatility, and periodic pullbacks have characterized the year. These pullbacks have been driven more by macroeconomic and geopolitical factors than by any sudden change in copper fundamentals, which, if anything, now look even more favorable. This environment reinforces the importance of operating discipline and resilience rather than simply relying on price direction for business success.

Speaker #3: Now, at the end of April, although volatility has not disappeared, copper prices appear to be supported by tight concentrate markets and a continued focus on medium-term supply constraints.

Speaker #3: The key points are management's perspective is this. 2026 has not been a straight-line price environment. A strong start, significant volatility, and periodic pullbacks have characterized the year.

Speaker #3: These pullbacks have been driven more by macroeconomic and geopolitical factors than by any sudden change in copper fundamentals, which, if anything, now look even more favorable.

Speaker #3: This environment reinforces the importance of operating disciplined and resilient, rather than simply relying on price direction for business success. Our success at AMERIGO and NBC does not depend on calling the copper price cycle.

Aurora Davidson: Our success at Amerigo and MVC does not depend on calling the copper price cycle. We focus on consistent operational performance, measured cost exposure, and disciplined capital allocation. By doing this, we know that the business will perform well across a range of copper price outcomes. The copper price environment in early 2026 illustrates why that approach matters. I will end my comments by addressing the capital return strategy. Q1 has been a great example of how central the CRS is to value creation at Amerigo. As I mentioned a few moments ago, in Q1, Amerigo returned CAD 16.5 million to shareholders through a balanced mix of dividends and share buybacks. After the quarter end on 13 April, the board declared a performance dividend of CAD 0.16 per share, payable on 13 May.

Speaker #3: We focus on consistent operational performance, measured cost exposure, and disciplined capital allocation. By doing this, we know that the business will perform well across a range of copper price outcomes.

Speaker #3: The copper price environment in early 2026 illustrates why that approach matters. I will end my comments by addressing the capital return strategy. Q1 has been a great example of how central the CRS is to value creation at AMERIGO.

Speaker #3: As I mentioned a few moments ago, in Q1, AMERIGO returned 16.5 million to shareholders through a balanced mix of dividends and share buybacks. After the quarter end on April 13, the board declared a performance dividend of Canadian 16 cents per share, payable on May 13, and then on April 27, the board declared our 19th consecutive quarterly dividend of 4 cents Canadian per share.

Aurora Davidson: On 27 April 2024, the board declared our 19th consecutive quarterly dividend of CAD 0.04 per share, payable on 18 June 2024. Why do I highlight that tremendous return of capital since the beginning of the year? Well, first, it demonstrates the CRS' consistency. A regular quarterly dividend, now maintained for 19 consecutive quarters, establishes a clear baseline return to shareholders. Based on our 31 March 2024 closing share price of CAD 5.03, those quarterly dividends alone represent an annualized yield of approximately 3.2%. Second, it shows the CRS' flexibility in quickly returning excess cash. When we add to the base annualized yield, the performance dividends paid on 15 January 2024 and 13 May 2024, our total dividend distribution translates into a projected effective annual yield of approximately 7.4%.

Speaker #3: Payable on June 18. Why do I highlight that tremendous return of capital since the beginning of the year? Well, first, it demonstrates the CRS's consistency.

Speaker #3: A regular quarterly dividend now maintained for 19 consecutive quarters establishes a clear baseline return to shareholders. Based on our March 31st closing share price of $5.03 Canadian, those quarterly dividends alone represent an annualized yield of approximately 3.2%.

Speaker #3: Second, it shows the CRS's flexibility in quickly returning excess cash. When we add to the base annualized yield the performance dividends paid on January 15 and May 13, our total dividend distribution translates into a projected effective annual yield of approximately 7.4%.

Speaker #3: That level of yield gives important information about where AMERIGO's share price sits today. The yield captures a period when shareholders received concentrated returns through quarterly dividends performance dividends and buybacks.

Aurora Davidson: That level of yield gives important information about where Amerigo's share price sits today. The yield captures a period when shareholders received concentrated returns through quarterly dividends, performance dividends, and buybacks. It also does not reflect anything beyond the continuation of our quarterly dividend. Given that, we don't think that the share price has fully adjusted to reflect the potential for the levels of return of capital that we had in Q1. As capital is re-return consistently and the market understands our CRS even better than it does now, the yield should normalize at a lower level through share price appreciation. Although performance dividends are discretionary by design and linked to excess cash generation, Q1 was a tremendous example of how quickly and powerfully we can deploy performance dividends.

Speaker #3: It also does not reflect anything beyond the continuation of our quarterly dividend. Given that, we don't think that the share price has fully adjusted to reflect the potential for the level of return of capital that we had in Q1.

Speaker #3: As capital is returned consistently, and the market understands our CRS even better than it does now, the yield should normalize at a lower level through share price appreciation.

Speaker #3: Although performance dividends are discretionary by design and linked to excess cash generation, Q1 was a tremendous example of how quickly and powerfully we can deploy performance dividends.

Speaker #3: Performance dividends clearly allow for a quicker return of significant capital than a reset of the base dividend. Particularly during periods of copper price volatility.

Aurora Davidson: Performance dividends clearly allow for a quicker return of significant capital than a reset of the base dividend, particularly during periods of copper price volatility. Over time, what are the odds that investors will increasingly equate performance dividends with a permanent reset of our base dividend? Certainly, the more performance dividends we pay, the stronger the argument. After demonstrating the return of capital in Q1, I think those odds are already quite high. That leads me to the final question of this call today. If a 7.4% yield level is not an appropriate normalized yield for this superbly executed safe business, what is? I leave that to the market, which will ultimately decide, but in my mind, the answer is that the yield should be much lower. With that, I will let Carmen discuss the quarter's financial results.

Speaker #3: So over time, what are the odds that investors will increasingly equate performance dividends with a permanent reset of our base dividend? Certainly, the more performance dividends we pay, the stronger the argument.

Speaker #3: But after demonstrating the return of capital in Q1, I think those odds are already quite high. That leads me to the final question of this call today.

Speaker #3: If a 7.4% yield level is not an appropriate normalized yield for this superbly executed safe business, what is? I leave that to the market, which will ultimately decide.

Speaker #3: But in my mind, the answer is that the yield should be much lower. With that, I will let Carmen discuss the quarter's financial results.

Speaker #2: Thanks, Aurora. I am pleased to present the financial report for the first quarter of 2026 from AMERIGO and its MBC operation in Chile. The company had strong production for the first quarter, despite completing its annual maintenance shutdown.

Carmen Amezquita: Thanks, Aurora. I am pleased to present the financial report for Q1 2026 from Amerigo and its MVC operation in Chile. The company had strong production for Q1 despite completing its annual maintenance shutdown. 14.3 million pounds of copper were produced, which was 8% higher than the 13.2 million pounds produced during Q1 2025. Higher production was further supported by the strongest quarterly London Metal Exchange copper prices on record, resulting in an average copper price recognized by MVC during Q1 2026 of $5.70 per pound, compared to $4.42 per pound in Q1 2025.

Speaker #2: 14.3 million pounds of copper were produced, which was 8% higher than the 13.2 million pounds produced during the first quarter of 2025. Higher production was further supported by the strongest quarterly London Metal Exchange copper prices on record.

Speaker #2: Resulting in an average copper price recognized by MBC during Q1 of 2026 of $5.70 per pound compared to $4.42 per pound in Q1 2025.

Speaker #2: This increased production combined with a higher average copper price and lower cash cost resulted in a net income of 14.7 million up from 3.3 million in Q1 2025.

Carmen Amezquita: This increased production, combined with a higher average copper price and lower cash cost, resulted in a net income of CAD 14.7 million, up from CAD 3.3 million in Q1 2025. I will discuss the key variances in the financial results for Q1 2026 compared to Q1 2025. During the quarter, there were increases of CAD 16.3 million in copper tolling revenue and CAD 5.6 million in molybdenum revenue. These were offset by increases in CAD 15.3 million in DET notional copper royalties, CAD 4.8 million in tolling and production costs, and CAD 7.4 million in income tax expense. Revenue in Q1 2026 was 50% higher at CAD 66.2 million, compared to CAD 44.2 million in Q1 2025.

Speaker #2: I will discuss the key variances in the financial results for Q1 2026 compared to Q1 2025. During the quarter, there were increases of 16.3 million in copper tolling revenue, and 5.6 million in molybdenum revenue.

Speaker #2: These were offset by increases in 15.3 million in DET notional copper royalties, 4.8 million in tolling and production costs, and 7.4 million in income tax expense.

Speaker #2: Revenue in Q1 2026 was 50% higher at $66.2 million compared to $44.2 million in Q1 2025. This included copper tolling revenue of $56.9 million and molybdenum revenue of $9.2 million.

Carmen Amezquita: This included copper tolling revenue of CAD 56.9 million and molybdenum revenue of CAD 9.2 million. In Q1 2026, the gross value of copper tolls on behalf of DET was CAD 83.7 million. From this gross revenue, we deduct notional items, including DET royalties of CAD 31.3 million, smelting and refining of CAD 2.6 million, and transportation of CAD 0.4 million, then add +fair value adjustments to settlement receivables of CAD 7.6 million. Pulling and production costs increased 14% from CAD 34.5 million in Q1 2025 to CAD 39.3 million in Q1 2026. The most significant cost variances between the two quarters included increases in power costs of CAD 0.6 million due to higher production and an increase of CAD 0.5 million in maintenance costs.

Speaker #2: In Q1 2026, the gross value of copper tolls on behalf of DET was $83.7 million. From this gross revenue, we deduct notional items including DET royalties of $31.3 million, smelting and refining of $2.6 million, and transportation of $0.4 million, and then add positive fair value adjustments to settlement receivables of $7.6 million.

Speaker #2: Tolling and production costs increased 14% from $34.5 million in Q1 2025 to $39.3 million in Q1 2026. The most significant cost variances between the two quarters included increases in power costs of $0.6 million due to higher production and an increase of $0.5 million in maintenance costs.

Speaker #2: We also had an increase in direct labor of $0.4 million mainly as the result of the effect of production bonuses to workers. And a decrease of $1.1 million in inventory adjustments from a smaller difference between the copper produced and the copper delivered in the periods.

Carmen Amezquita: We also had an increase in direct labor of CAD 0.4 million, mainly as a result of the effect of production bonuses to workers and a decrease of CAD 1.1 million in inventory adjustments from a smaller difference between the copper produced and the copper delivered in the periods. The ET royalties for Molybdenum in Q1 2026 also increased to CAD 1.4 million from CAD 0.8 million as a result of higher moly production and prices. This resulted in a gross profit of CAD 26.9 million compared to CAD 9.7 million in Q1 2025, representing a CAD 17.2 million increase.

Speaker #2: DET royalties for molybdenum in Q1 2026 also increased to $1.4 million from $0.8 million as the result of higher MOLY production and prices. This resulted in a gross profit of $26.9 million compared to $9.7 million in Q1 2025.

Speaker #2: Representing a 17.2 million dollar increase. Looking at other expenses on the statement of profit and loss, in Q1 2026, we had general and administrative expenses of $2 million, including salaries, management, and professional fees of $1 million, office and general expenses of $0.5 million, and share-based payments of $0.4 million.

Carmen Amezquita: Looking at other expenses on the statement of profit and loss, in Q1 2026, we had general and administrative expenses of CAD 2 million, including salaries, management and professional fees of CAD 1 million, office and general expenses of CAD 0.5 million, and share-based payments of CAD 0.4 million. This compares to general and administration expenses of CAD 1.3 million in Q1 2025. Other gains were CAD 1.1 million compared to a gain of CAD 0.1 million in Q1 2025, driven mainly by foreign exchange gains in both periods. Finance income was CAD 0.2 million compared to a finance expense of CAD 0.4 million in Q1 2025. This is a structural cost change arising from Amerigo being debt-free.

Speaker #2: This compares to general and administration expenses of $1.3 million in Q1 2025. Other gains were $1.1 million compared to a gain of $0.1 million in the first quarter of 2025 driven mainly by foreign exchange gains in both periods.

Speaker #2: And finance income was $0.2 million compared to a finance expense of $0.4 million in Q1 2025. This is a structural cost change arising from AMERIGO being debt-free.

Speaker #2: Income tax expense was $12 million in Q1 2026 compared to $4.6 million in Q1 2025, with the current tax expense of $12.7 million and a deferred income tax recovery of $0.7 million.

Carmen Amezquita: Income tax expense was CAD 12 million in Q1, 2026, compared to CAD 4.6 million in Q1, 2025, with the current tax expense of CAD 12.7 million and a deferred income tax recovery of CAD 0.7 million. The increase in tax expense was driven by the company's higher pre-tax income as well as an increase in withholding tax payments in connection with the higher dollar value of repatriated funds during the period. Before moving on to the statement of financial position, I will mention some non-IFRS measures used by the company. Cash cost, total cost, and All-in sustaining cost. In Q1, 2026, Amerigo's Cash cost was CAD 1.82 per pound, decreasing from CAD 22.22 per pound in Q1, 2025.

Speaker #2: The increase in tax expense was driven by the company's higher pre-tax income. As well as an increase in withholding tax payments in connection with the higher dollar value of repatriated funds during the period.

Speaker #2: Before moving on to the statement of financial position, I will mention some non-IFRS measures used by the company. Cash cost, total cost, and all-ins sustaining cost.

Speaker #2: In Q1 2026, AMERIGO's cash cost was $1.82 per pound, decreasing from $22.22 per pound in Q1 2025. The $0.40 per pound decrease in cash cost was primarily due to a $37 cent per pound increase in molybdenum byproduct credits.

Carmen Amezquita: The CAD 0.40 per pound decrease in Cash Cost was primarily due to a CAD 0.37 per pound increase in molybdenum byproduct credits, which in turn was driven by a 33% increase in molybdenum production and a 27% increase in the molybdenum price. Other changes in Cash Costs between the two comparative quarters were a CAD 0.06 per pound increase in maintenance costs and a CAD 0.05 per pound decrease in smelting and refining charges. In Q1 2026, total cost increased to CAD 4.53 per pound compared to CAD 3.90 per pound in Q1 2025. Following increases of CAD 1.02 per pound in DET notional royalties in response to stronger copper prices and CAD 0.01 per pound in depreciation, offset by a decrease of CAD 0.40 per pound in Cash Cost.

Speaker #2: Which in turn was driven by a $33% increase in molybdenum production and a $27% increase in the molybdenum price. Other changes in cash cost between the two comparative quarters were a $0.06 per pound increase in maintenance costs and a $0.05 per pound decrease in smelting and refining charges.

Speaker #2: In Q1 2026, total cost increased to $4.53 per pound compared to $3.90 per pound in Q1 2025. Following increases of $1.02 per pound in DET notional royalties in response to stronger copper prices, and $0.01 per pound in depreciation.

Speaker #2: Offset by a decrease of $0.40 per pound in cash cost. All-ins sustaining costs increased to $5.03 per pound from $4.28 per pound in Q1 2025 due to increases of $0.63 per pound in total costs, $0.08 per pound in sustaining capex, and $0.03 per pound in corporate G&A expenses.

Carmen Amezquita: All-in sustaining costs increased to $5.03 per pound from $4.28 per pound in Q1 2025 due to increases of $0.63 per pound in total cost, $0.08 per pound in sustaining CapEx, and $0.03 per pound in corporate G&A expenses. Moving on to the statement of financial position. Strong operating cash flow allowed us to end the quarter with $57.2 million in cash and $12.6 million in working capital while continuing to fund our capital return strategy. Most of the accounts in the statement of financial position had minimal changes from 31 December 2025 to 31 March 2026, with the exception of trade and settlement receivables and dividends payable.

Speaker #2: Moving on to the statement of financial position, strong operating cash flow allowed us to end the quarter with $57.2 million in cash and $12.6 million in working capital, while continuing to fund our capital return strategy.

Speaker #2: Most of the accounts in the statement of financial position had minimal changes from December 31st, 2025, to March 31st, 2026, with the exception of trade and settlement receivables and dividends payable.

Speaker #2: Trade and settlement receivables decreased from $34.2 million as of December 31st, 2025, to $11.7 million as of March 31st, 2026. This decrease is due to the timing of receipt of invoices in the normal course of business and the effect of mark-to-market adjustments at quarter end.

Carmen Amezquita: Trade and settlement receivables decreased from CAD 34.2 million as of 31 December 2025 to CAD 11.7 million as of 31 March 2026. This decrease is due to the timing of receipt of invoices in the normal course of business and the effect of mark-to-market adjustments at quarter end. At 31 December 2025, there was CAD 5.8 million in dividends payable related to the CAD 0.05 per share performance dividend declared on 9 December 2025 that was paid out on 15 January 2026. To conclude, Amerigo had a robust balance sheet at the end of the quarter that was conducive to the CAD 0.16 performance dividend declared on 13 April 2026.

Speaker #2: And at December 31st, 2025, there was $5.8 million in dividends payable. Related to the $0.05 Canadian per share performance dividend declared, on December 9th, 2025, it was paid out on January 15th, 2026.

Speaker #2: To conclude, AMERIGO had a robust balance sheet at the end of the quarter that was conducive to the 16 cents Canadian performance dividend declared on April 13th, 2026.

Speaker #2: We will look at these mechanics in the statement of cash flow. On the cash flow statement in Q1 2026, the company generated cash from operating activities of $20.2 million compared to $11.6 million in Q1 2025.

Carmen Amezquita: We will look at these mechanics in the statement of cash flow. On the cash flow statement in Q1 2026, the company generated cash from operating activities of CAD 20.2 million compared to CAD 11.6 million in Q1 2025. Once we include the effect of changes in non-cash working capital accounts, the company generated net cash from operating activities of CAD 40.1 million compared to CAD 1.9 million in Q1 2025. In terms of uses of cash during the quarter, CAD 5.7 million was used for investing activities. In other words, for CapEx payments. In Q1 2025, CapEx payments were CAD 6.8 million. Continuing with uses of cash, we move to financing activities of CAD 17.3 million compared to CAD 3.3 million in Q1 2025.

Speaker #2: Once we include the effective changes in non-cash working capital accounts, the company generated net cash from operating activities of $40.1 million compared to $1.9 million in Q1 2025.

Speaker #2: In terms of uses of cash during the quarter, $5.7 million was used for investing activities, in other words, for capex payments. In Q1 2025, capex payments were $6.8 million.

Speaker #2: Continuing with uses of cash, we move to financing activities of $17.3 million compared to $3.3 million in Q1 2025. These included AMERIGO returning $16.5 million to shareholders, with $5.9 million through share buybacks, $5.8 million in performance dividends, and $4.7 million in quarterly dividends.

Carmen Amezquita: These included Amerigo returning CAD 16.5 million to shareholders with CAD 5.9 million through share buybacks, CAD 5.8 million in performance dividends, and CAD 4.7 million in quarterly dividends. The returns to shareholders in Q1 2026 were CAD 11.9 million higher in Q1 2026 compared to Q1 2025. This resulted in the company having CAD 57.2 million in cash and cash equivalents at the end of the quarter. Given the cash balance held at the end of the quarter and consistent with Amerigo's capital return strategy, on 13 April 2026, Amerigo's board of directors declared a performance dividend in the amount of CAD 0.16 per share, payable on 13 May 2026 to shareholders on record as of 20 April 2026. Those are the comments regarding Q1 2026 financial performance.

Speaker #2: The returns to shareholders in Q1 2026 were $11.9 million higher in Q1 2026 compared to Q1 2025. This resulted in the company having $57.2 million in cash and cash equivalents at the end of the quarter.

Speaker #2: Given the cash balance held at the end of the quarter and consistent with AMERIGO's capital return strategy, on April 13th, 2026, AMERIGO's board of directors declared a performance dividend in the amount of $0.16 Canadian per share payable on May 13th, 2026, to shareholders on record as of April 20th, 2026.

Speaker #2: Those are the comments regarding Q1 2026 financial performance. In terms of our outlook, as stated in our MDNA, AMERIGO is on track to meet its annual production guidance of $63.8 million pounds of copper and $1.5 million pounds of molybdenum.

Carmen Amezquita: In terms of our outlook, as stated in our MD&A, Amerigo is on track to meet its annual production guidance of 63.8 million pounds of copper and 1.5 million pounds of molybdenum. Our annual cash cost guidance is CAD 1.98 per pound, and the Q1 2026 cash cost of CAD 1.82 per pound came in below the annual guidance. At this stage, we are maintaining our annual cash cost guidance. Aurora mentioned that Chile has been affected by a substantial increase in diesel prices due to the conflict with Iran. In MVC's case, this effect is limited because we don't use much diesel in operation. We estimate a 50% increase in diesel consumption costs for the year, representing an impact of approximately CAD 1 million. For 2026, our CapEx guidance was CAD 17.5 million.

Speaker #2: Our annual cash cost guidance is $1.98 per pound, and the Q1 2026 cash cost of $1.82 per pound came in below the annual guidance.

Speaker #2: At this stage, we are maintaining our annual cash cost guidance. Aurora mentioned that Chile has been affected by a substantial increase in diesel prices due to the conflict with Iran.

Speaker #2: An MVC's case, this effect is limited because we don't use much diesel in operation. We estimate a 50% increase in diesel consumption costs for the year representing an impact of approximately $1 million.

Speaker #2: For 2026, our capex guidance was $17.5 million. We currently estimate that this could increase to $19.3 million primarily due to expected cost escalation of project subcontractors, and to a lesser degree to the cost of engineering studies at MVC for 2027 projects.

Carmen Amezquita: We currently estimate that this could increase to $19.3 million, primarily due to expected cost escalation of project subcontractors and to a lesser degree, to the cost of engineering studies at MVC for 2027 projects. As a final comment, we reported a provisional copper price of $5.70 per pound on our Q1 2026 sales. The final prices for January, February, and March 2026 copper deliveries will be the average LME prices for April, May, and June 2026, respectively. A 10% increase or decrease from the $5.70 per pound provisional price used on 31 March 2026, would result in an $8.2 million change in revenue in the Q2 2026 regarding Q1 2026 copper deliveries.

Speaker #2: As a final comment, we reported a provisional copper price of $5.70 per pound on our Q1 2026 sales. The final prices for January, February, and March 2026 copper deliveries will be the average LME prices for April, May, and June 2026 respectively.

Speaker #2: A 10% increase or decrease from the $5.70 per pound provisional price used on March 31st, 2026, would result in an $8.2 million change in revenue in the second quarter of 2026 regarding Q1 2026 copper deliveries.

Speaker #2: We will report AMERIGO's Q2 2026 financial results in July 2026 and want to thank you for your continued interest in the company. We will now take questions from call participants.

Carmen Amezquita: We will report Amerigo's Q2 2026 financial results in July 2026 and wanna thank you for your continued interest in the company. We will now take questions from call participants.

Speaker #2: At this time, if you would like to ask a question, press star, followed by the number one on your telephone keypad. Again, that's star, followed by the number one.

Operator: We'll pause for just a moment to compile the Q&A roster. Your first question comes from John M. Polcari with Mutual of America Capital Management.

Speaker #2: We'll pause for just a moment to compile the Q&A roster. Your first question comes from John Polcari with Mutual of America Capital Management.

Operator: We'll pause for just a moment to compile the Q&A roster. Your first question comes from John M. Polcari with Mutual of America Capital Management.

Speaker #3: Yeah, good afternoon. Can you hear me clearly?

John M. Polcari: Good afternoon. Can you hear me clearly?

John Polcari: Good afternoon. Can you hear me clearly?

Speaker #2: We can hear you loud and clear, John.

Carmen Amezquita: We can hear you loud and clear, John.

Speaker #3: Thank you. By the way, your the connections in your news release the toll-free number, etc., are just FYI, not accurate. They're not working. I was able to contact the Vista Relations and get a different link.

John M. Polcari: Thank you. By the way, your connections in your news release, the toll-free number, et cetera, are just FYI, not accurate. They're not working. I was able to contact investor relations and get a different link. Just for your information, the phone numbers are either not working or unrelated to Amerigo. Anyway.

John Polcari: Thank you. By the way, your connections in your news release, the toll-free number, et cetera, are just FYI, not accurate. They're not working. I was able to contact investor relations and get a different link. Just for your information, the phone numbers are either not working or unrelated to Amerigo. Anyway.

Speaker #3: So just for your own information, the phone numbers are either not working or unrelated to your to AMERIGO.

Speaker #2: John, thank you for letting us know that. We changed providers. We have people on the line but we will look into that to ensure this does not happen.

Carmen Amezquita: John, thank you for letting us know that. We changed providers. We have people on the line, but we will look into that to ensure this does not happen. Our call is, anyway, being recorded and will be available on the website, as will the transcript. Thank you for pointing that out.

Speaker #2: And our call is anyways being recorded and will be available on the website as will the transcript. But thank you for pointing that out.

Speaker #3: All right. Perfect. Thank you. Two questions. The first one is, since the price of copper has been and may continue to be higher than the caps used in the current agreement to assess royalties, two parts to this question.

John M. Polcari: Perfect. Thank you. 2 questions. Since the first one is, since the price of copper has been and may continue to be higher than the caps used in the current agreement to assess royalties. 2 parts to this question. One, have there been discussions about formalizing the royalty above the current cap, for instance, on historical tailings when the price is CAD 5.50, the royalty is CAD 2.15? Over and above CAD 5.50, does the royalty stay at that price, and are we subject to a potential increase? Is there a potential liability if the royalty above that price were to subsequently increase retroactively?

John Polcari: Perfect. Thank you. 2 questions. Since the first one is, since the price of copper has been and may continue to be higher than the caps used in the current agreement to assess royalties. 2 parts to this question. One, have there been discussions about formalizing the royalty above the current cap, for instance, on historical tailings when the price is CAD 5.50, the royalty is CAD 2.15? Over and above CAD 5.50, does the royalty stay at that price, and are we subject to a potential increase? Is there a potential liability if the royalty above that price were to subsequently increase retroactively?

Speaker #3: One, have there been discussions about formalizing the royalty above the current cap, for instance, on historical tailings when the price is $5.50, the royalty is $2.15?

Speaker #3: So over and above $5.50, does the royalty stay at that price? And are we subject to a potential increase? Is there a potential liability if the royalty above that price were to subsequently increase, retroactively?

Speaker #2: John, the discussions are ongoing. We have started those discussions. They are ongoing and we will report the conclusion of those discussions when they are concluded and we cannot comment in the meantime.

Aurora Davidson: John, the discussions are ongoing. We have started those discussions. They are ongoing. We will report the conclusion of those discussions when they are concluded, and we cannot comment in the meantime. Our financial statements are not exposed. We have accrued for potential differences. We haven't miscalculated or used a lower royalty factor than necessary. We are well protected with accruals on our financial statements. The discussions are ongoing, and we expect them to conclude in the near future. Certainly, by the time we report the next quarterly earnings. When we have information, we will release that information to the market.

Speaker #2: Our financial statements are not exposed. We have accrued for potential differences. We haven't missed calculated or used a lower royalty factor than necessary. So we are well protected with accruals on our financial statements but the discussions are ongoing.

Speaker #2: And we expect them to conclude in the near future. Certainly, by the time we report the next quarterly earnings. And when we have information, we will release that information to the market.

Speaker #3: Great. Just a quick follow-up then. So on prices, say, for historic tailings above $5.50 a pound of copper, are we currently using the royalty, the cap, the royalty cap of $2.15 as we speak?

John M. Polcari: Great. Just a quick follow-up. On prices, say for stored tailings above $5.50 a pound of copper, are we currently using the royalty, the cap, the royalty cap of $2.15 as we speak? Would that be correct?

John Polcari: Great. Just a quick follow-up. On prices, say for stored tailings above $5.50 a pound of copper, are we currently using the royalty, the cap, the royalty cap of $2.15 as we speak? Would that be correct?

Speaker #3: Is that would that be correct?

Aurora Davidson: We have taken a conservative approach in perhaps over-accruing our royalties subject to final negotiations. That's all I can say.

Speaker #2: We have taken a conservative approach in perhaps over-accruing our royalties, subject to final negotiations. That's all I can say.

Aurora Davidson: We have taken a conservative approach in perhaps over-accruing our royalties subject to final negotiations. That's all I can say.

Speaker #3: Thank you. That's fine. Thanks. But we have done some what we would call a conservative accrual accounting.

John M. Polcari: Thank you. That's fine. Thanks. We have done some what we would call a conservative accrual accounting.

John Polcari: Thank you. That's fine. Thanks. We have done some what we would call a conservative accrual accounting.

Aurora Davidson: You know, we are conservative that way, so we've taken the measures for that.

Speaker #2: You know we are conservative that way. So we've taken the measures for that.

Aurora Davidson: You know, we are conservative that way, so we've taken the measures for that.

Speaker #3: Thank you. No, that's great. The second question I had was on shares outstanding. I know that we're down $61,583 shares from year-end '25 through March 31.

John M. Polcari: Thank you. No, that's great. The second question I had was on shares outstanding. I know that we're down 61,583 shares from year-end 2025 through 31 March. For the first three months is a modest reduction in shares outstanding. Repurchases totaled CAD 1.5 million, approximately. Can you just address-

John Polcari: Thank you. No, that's great. The second question I had was on shares outstanding. I know that we're down 61,583 shares from year-end 2025 through 31 March. For the first three months is a modest reduction in shares outstanding. Repurchases totaled CAD 1.5 million, approximately. Can you just address-

Speaker #3: So for the first three months, is a modest reduction in shares outstanding. Repurchases totaled $1.05 million approximately. Can you just address?

Aurora Davidson: Correct.

Speaker #2: Correct.

Speaker #3: Where the difference is, is it handed distributed to management, board members, a combination? I mean, well-deserved, I'll add, in light of results. But I'm wondering.

John M. Polcari: Where the difference is? Is it handed, distributed to management, board members, a combination? I mean, well deserved, I'll add, in light of results, but I'm wondering.

John Polcari: Where the difference is? Is it handed, distributed to management, board members, a combination? I mean, well deserved, I'll add, in light of results, but I'm wondering.

Aurora Davidson: The only share issuances we've had, John, since 2008 are when options that are in the money are exercised.

Speaker #2: The only John, the only share issuances we've had since 2008 are when options that are in the money are exercised.

Aurora Davidson: The only share issuances we've had, John, since 2008 are when options that are in the money are exercised.

Speaker #3: I see. And that would account for the increase in shares outstanding net that repurchases?

John M. Polcari: I see. That would account for the, for the increase in shares outstanding net the repurchases.

John Polcari: I see. That would account for the, for the increase in shares outstanding net the repurchases.

Speaker #2: Correct.

Aurora Davidson: Correct.

Speaker #3: Okay.

John M. Polcari: Okay.

John Polcari: Okay.

Speaker #2: Correct. I still disclose in the notes to the financial statements under the share capital note. We disclose the number of shares that were issued as the number of options that were canceled in respect of those exercises as well.

Aurora Davidson: Correct. It's all disclosed in the notes to the financial statements under the shared capital note. We disclose the number of shares that were issued, the number of options that were canceled in respect of those exercises as well. I should note that most of the people that exercise their options at Amerigo are doing that under a cashless position. The amount of shares that are issued are substantially less than the number of options that are being exercised.

Speaker #2: I should note that most of the people that exercise their options at AMERIGO are doing that on a under a cashless position. So the amount of shares that are issued are substantially less than the number of options that are being exercised.

Speaker #3: Okay. Thanks. Yeah, I do know that details on the options are in the notes. And so it would not lead to any significant increase in cash on the balance sheet because it's a cashless exercise.

John M. Polcari: Okay. Thanks. Yeah, I do know that the details on the options are in the notes. It would not lead to any significant increase in cash on the balance sheet because it's a cashless exercise. Is that the accurate? Primarily a cashless exercise?

John Polcari: Okay. Thanks. Yeah, I do know that the details on the options are in the notes. It would not lead to any significant increase in cash on the balance sheet because it's a cashless exercise. Is that the accurate? Primarily a cashless exercise?

Speaker #3: Is that be accurate? Primarily a cashless exercise?

Speaker #2: They are primarily cashless exercise. Let's put it this way. We are not relying on the exercise funds to keep the balance sheet healthy.

Aurora Davidson: They are primarily cashless exercise. Let's put it this way. We're not relying on the exercise funds to keep the balance sheet healthy.

Speaker #3: Okay. It's not a significant if at all source of cash to the company when the options are exercised. Okay. That's fairly accurate, right?

John M. Polcari: Okay. It's not a significant if at all source of cash to the company when the options are exercised. Okay. That's fairly accurate, right?

John Polcari: Okay. It's not a significant if at all source of cash to the company when the options are exercised. Okay. That's fairly accurate, right?

Speaker #2: Correct.

Aurora Davidson: Correct.

Speaker #3: Okay. Well, thank you.

John M. Polcari: Okay. Well, thank you.

John Polcari: Okay. Well, thank you.

Speaker #2: Thank you, John.

Aurora Davidson: Thank you, John.

John M. Polcari: Appreciate the time. Thanks.

John Polcari: Appreciate the time. Thanks.

Speaker #3: Appreciate the time. Thanks.

Speaker #2: Your next question comes from Ben Pirie, with Atrium Research.

Operator: Your next question comes from Ben Pirie with Atrium Research.

Ben Pirie: Hi, Aurora and Carmen. Congrats on another strong and record quarter. Just a couple questions here. I guess I'll piggyback on John M. Polcari's last question. Just in terms of the share buybacks, at these prices, the share price that is, obviously the cost to buy back shares is that much higher than it was, you know, a year ago. Is the intention to buy back enough shares to offset dilution, or do you plan on going beyond that and actually reducing the share count?

Speaker #4: Hi Rowan and Carmen. Congrats on another strong and record quarter. Just a couple of questions here. And I guess I'll piggyback on John's last question just in terms of the share buybacks.

Speaker #4: At these prices, the share price that is, obviously, the cost to buyback shares is that much higher than it was a year ago. Is the intention to buy back enough shares to offset dilution or do you plan on going beyond that and actually reducing the share count?

Speaker #2: It could be either/or. We plan on continuing to use the three tools of the CRS for the rest of the year. And as we've said, the minimum commitment is not to have dilution.

Aurora Davidson: It could be either/or. We plan on continuing to use the three tools of the CRS for the rest of the year. As we've said, the minimum commitment is not to have dilution. If we need to go in aggressively to support the share price, we will do so. It's all opportunistic, Ben, and there are no plans to shelf the share buybacks as a mechanism for the rest of the year by any means.

Speaker #2: If we needing to support if we need to go in aggressively to support the share price, we will do so. So it's all opportunistic, Ben.

Speaker #2: And there are no plans to shelf the share buybacks as a mechanism for the rest of the year by any means.

Speaker #4: Yeah. Okay. Understood. Thank you. And I know this is sort of mentioned briefly on the opening remarks, but do you foresee any increase in cash cost as a result of the ongoing war?

Ben Pirie: Yeah. Okay. Understood. Thank you. I know this is sort of mentioned briefly on the opening remarks, but do you foresee any increase in Cash costs as a result of the ongoing war? I know there was that mention of diesel price increases being pretty minimal, at the operation.

Speaker #4: And I know there was that mention of diesel price increases being pretty minimal at the operation.

Speaker #2: Carmen, do you want to comment on that?

Aurora Davidson: Carmen, do you wanna comment on that?

Speaker #5: Yeah. Hi, Ben. Yeah. So I mean, I think there's been small inflationary pressures on price of goods everywhere but not specifically war-related. The one thing that would impact MVC would be diesel prices.

Carmen Amezquita: Hi, Ben. I mean, I think there's been small inflationary pressures on price tickets everywhere, but not specifically war-related. The one thing that would impact MVC would be diesel prices, which I mentioned in my finance overview. MVC uses very little diesel. It's only 5% of the energy consumption, as we mostly use electricity. The impact's very limited. At this time, we estimate there'd be around a 50% increase in diesel for the year. If we use that assumption, that would amount to an impact of approximately CAD 1 million.

Speaker #5: Which I mentioned in my finance overview. MVC uses very little diesel. It's only 5% of the energy consumption as we mostly use electricity. So the impact's very limited.

Speaker #5: At this time, we estimate there'd be around a 50% increase in diesel for the year. And if we use that assumption, that would amount to an impact of approximately $1 million.

Speaker #4: Okay. Okay. Great. So diesel the largest but still relatively small just is obviously it's a small piece of the energy you guys consume. Just in the MDNA for Q1, there seems to be an increase in disclosure around revenue.

Ben Pirie: Okay. Okay, great. Diesel the largest, but still relatively small, just as obviously it's a small piece of the energy you guys consume. Just in the MD&A for Q1, there seems to be an increase in disclosure around revenue. Could you just walk me through that a little bit?

Speaker #4: Could you just walk me through that a little bit?

Speaker #5: Sure. So we did add some additional disclosure in the MDNA. As well as a shortened version of that disclosure in the revenue note of the financial statements.

Carmen Amezquita: Sure. We did add some additional disclosure in the MD&A, as well as a shortened version of that disclosure in the revenue note of the financial statements. It's just to provide more clarity on our M+3 copper price convention. If you take a look at the MD&A, just to walk you through it, we did separate it out into two sections. There's the adjustment to the same quarter sales and then the adjustments to the prior quarter sales or the final price adjustments. In that first table, you'll see it, the sales are initially recorded at the provisional forward price of copper at the end of each month for that month's deliveries. That's the LME M+3 average copper price for the month. This is what's included in our gross value of copper tolled line within revenue.

Speaker #5: And it's just to provide more clarity on our M+3 copper price convention. If you take a look at the MDNA just to walk you through it, we did separate it out into two sections.

Speaker #5: There's the adjustment to the same quarter sales and then the adjustments to the prior quarter sales or the final price adjustments. So in that first table, you'll see the sales are initially recorded at the provisional forward price of copper at the end of each month for that month's deliveries.

Speaker #5: And that's the LME, M+3 average copper price for the month. This is what's included in our gross value of copper told line within revenue.

Speaker #5: And then these sales are marked to market to the provisional forward price at the end of each quarter which is shown to the right and was an average of $5.70 per pound.

Carmen Amezquita: Then these sales are marked market to the provisional forward price at the end of each quarter, which is shown to the right and was an average of CAD 5.70 per pound, which we take the price curve between the published LME monthly average M and M+3 prices. As you see, the prices decreased, and this for the quarter resulted in CAD 2.2 million in negative price adjustments. That second table are the final price adjustments. This takes the provisional price that was recorded at 31 December for October, November, December sales, and then shows the final settlement price for each of those months deliveries during Q1. In this case, the price increased, and there was a CAD 9.8 million settlement adjustment for those sales.

Speaker #5: Which we take the price curve between the published LME monthly average M and M+3 prices. So as you see, the prices decreased and this for the quarter resulted in 2.2 million in negative price adjustments.

Speaker #5: Then that second table are the final price adjustments. So this takes the provisional price that was recorded at December 31st for October, November, December sales and then shows the final settlement price for each of those month's deliveries during Q1.

Speaker #5: So in this case, the price increased and there was a 9.8 million dollar settlement adjustment for those sales. So together, if we take that 2.2 million dollars in negative adjustments and then that 9.8 million dollar in positive adjustments, you'll arrive at the 7.6 million in positive settlement adjustments that you see within our revenue.

Carmen Amezquita: Together, if we take that CAD 2.2 million in negative adjustments and then that CAD 9.8 million in positive adjustments, you will arrive at the CAD +7.6 million in positive settlement adjustments that you see within our revenue as a separate line item. We are just hoping that this disclosure helps to break that process down and make it clearer as to how the M+3 convention works.

Speaker #5: As a separate line item. So we're just hoping that this disclosure helps to break that process down and make it clearer as to how the M+3 convention works.

Speaker #4: Yeah. Understood. Okay. I appreciate that clarity and it does paint a good picture. It is works when the copper price is going up. Obviously, you guys benefit significantly and sometimes to the downside, slightly.

Ben Pirie: Yeah. Understood. Okay. I appreciate that clarity, and it does paint a good picture. It is, works when the copper price is going up, obviously you guys benefit significantly and sometimes to the downside slightly, but generally, we're investing in this story for the copper price appreciation thesis. Thank you for that, Carmen. Just my last question here quickly, can either yourself or Aurora just talk about the slight increase in the annual CapEx guidance? I believe it increased from the previous guidance to yesterday's release by CAD 1.8 million, and just where the reasoning for that adjustment.

Speaker #4: But generally, we're investing in this story for the copper price appreciation thesis. So thank you for that, Carmen. And just my last question here quickly.

Speaker #4: Can either yourself or Aurora just talk about the slight increase in the annual CapEx guidance? I believe it increased from the previous guidance to yesterday's release by 1.8 million.

Speaker #4: And just where the reasoning for that adjustment.

Speaker #2: I can comment on that, Ben. And this question relates to what Carmen was explaining before we present to you and to the market quarterly results.

Aurora Davidson: I can comment on that, Ben. This question relates to what Carmen was explaining before. We present to you and to the market, quarterly results, but we do a full monthly close of our financial statements on a monthly basis. Every month, we sit down with our engineering team at MVC and the finance team at MVC to gather, how the orders on the CapEx are progressing and how the preliminary quotes that were, you know, considered, to prepare the annual CapEx are moving along. We are seeing some escalation in mobilization, costs associated with our subcontractors for projects. This is related to diesel costs, for example. We are factoring that into a projected potential increase in CapEx.

Speaker #2: But we do a full monthly close of our financial statements on a monthly basis. So every month, we sit down with our engineering team at MVC and the finance team at MVC to gather how the orders on the CapEx are progressing.

Speaker #2: And how the preliminary quotes that were considered to prepare the annual CapEx are moving along. We are seeing some escalation in mobilization costs associated with our subcontractors for projects.

Speaker #2: This is related to diesel costs, for example. So we are factoring that into a projected potential increase in CapEx. Again, it's a conservative approach.

Aurora Davidson: Again, it's a conservative approach, we don't want to be waiting until October, November to adjust our what we called our C-CapEx equation. We monitor that monthly, and the data that we have in front of us is it's not showing us a red sign, but it's showing us a yellow sign that says, Let's reconsider some of these costs. Just in case, we are disclosing them now because we have that information as management. It's perhaps a proactive approach in trying to assess in real time how the CapEx incurred costs will be progressing along the year.

Speaker #2: So we don't want to be waiting until October, November to adjust our what we called our CapEx equation we monitor that monthly and the data that we have in front of us is it's not showing us a red sign but it's showing us a yellow sign that says let's reconsider some of these costs and just in case we are disclosing them now because we have that information as management.

Speaker #2: So it's perhaps a proactive approach in trying to assess in real time how the CapEx incurred costs will be progressing along the year. And then there's also around $400,000 of engineering studies that the team has recommended.

Aurora Davidson: There's also around CAD 400,000 of engineering studies that the team has recommended we undertake earlier than expected, so earlier in this year, as opposed to in 2027, just associated with having more information on potential additional optimization CapEx projects that may come along. Again, perhaps a little bit ahead of time, but because management has that information, we are communicating that to the market as a potential increase in CapEx associated with those drivers.

Speaker #2: We undertake earlier than expected. So earlier in this year. As opposed to in 2027 just associated with having more information on potential additional optimization CapEx projects that may come along.

Speaker #2: So again, perhaps a little bit ahead of time but because management has that information, we are communicating that to the market as a potential increase in CapEx associated with those drivers.

Speaker #4: Amazing. Okay. Great. Thank you. Yeah. That is smart getting ahead of it and appreciate that answer. And that's all the questions I had today.

Ben Pirie: Amazing. Okay, great. Thank you. Yep, that is smart, getting ahead of it, and appreciate that answer. That is all the questions I had today. Thank you.

Speaker #4: Thank you.

Speaker #2: Again, if you would like to ask a question, press star one on your telephone keypad. Your next question is from John Polcari with Mutual of America Capital Management.

Operator: Again, if you would like to ask a question, press star one on your telephone keypad. Your next question is from John M. Polcari with Mutual of America Capital Management.

Speaker #5: Thank you. Just a quick follow-up on the increase in the CapEx on the engineering side. Would any of these expenditures possibly result in increased production or lower costs due to greater efficiency?

John M. Polcari: Thank you. Just a quick follow-up on the increase in the CapEx. On the engineering side, would any of these expenditures possibly result in increased production or lower costs due to greater efficiency, or is it primarily just to keep the existing infrastructure up to par?

John Polcari: Thank you. Just a quick follow-up on the increase in the CapEx. On the engineering side, would any of these expenditures possibly result in increased production or lower costs due to greater efficiency, or is it primarily just to keep the existing infrastructure up to par?

Speaker #5: Or is it primarily just to keep the existing infrastructure up to par?

Speaker #2: In this case, they are associated with potential optimization projects, John.

Aurora Davidson: In this case, they are associated with potential optimization projects, John.

Speaker #5: Okay. Which possibly would result in. Lower costs. Okay.

John M. Polcari: Okay. Which possibly would result in,

John Polcari: Okay. Which possibly would result in,

Aurora Davidson: Higher recovery.

John M. Polcari: Lower costs. Okay.

John Polcari: Lower costs. Okay.

Speaker #2: Higher recoveries.

Aurora Davidson: Higher recoveries.

Speaker #5: Thank you.

John M. Polcari: Thank you.

John Polcari: Thank you.

Speaker #6: There are no further questions at this time. I'll now turn the call back over to Aurora for any closing remarks.

Operator: There are no further questions at this time. I'll now turn the call back over to Aurora Davidson for any closing remarks.

Speaker #2: Thank you so much. Well, thank you for attending today's call. The recording and the script will be available on the AMERIGO website in the next few days.

Aurora Davidson: Thank you so much. Well, thank you for attending today's call. The recording and the script will be available on the Amerigo website in the next few days. Please visit our website regularly for updates and feel free to contact us with any questions. Thank you for your continued interest in Amerigo.

Speaker #2: Please visit our website regularly for updates. And feel free to contact us with any questions. And thank you for your continued interest in AMERIGO.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Q1 2026 Amerigo Resources Ltd Earnings Call

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