Q1 2026 Wesdome Gold Mines Ltd Earnings Call

May 13, 2026

Operator 2: Good morning. Welcome to Wesdome Gold Mines' conference call to discuss the company's financial and operating results for the 3 months ended 31 March 2026. As a reminder, this call is being recorded. Your host for today is Trish Moran, Wesdome's Vice President of Investor Relations. Ms. Moran, please go ahead.

Operator: Good morning. Welcome to Wesdome Gold Mines' conference call to discuss the company's financial and operating results for the 3 months ended 31 March 2026. As a reminder, this call is being recorded. Your host for today is Trish Moran, Wesdome's Vice President of Investor Relations. Ms. Moran, please go ahead.

Speaker #1: As a reminder, this call is being recorded. Your host for today is Trish Moran, Westdome's Vice President of Investor Relations. Ms. Moran, please go ahead.

Speaker #2: Thank you, Operator, and good morning, everyone. Before we get started, I'd like to point out that during today's call, we may make forward-looking statements as defined under Canadian Securities Law.

Trish Moran: Thank you, operator. Good morning, everyone. Before we get started, I'd like to point out that during today's call, we may make forward-looking statements as defined under Canadian securities law. I ask that you view our live presentation for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Please note that all figures discussed on this call are in Canadian dollars unless otherwise noted. Our press release, MD&A, and financial statements are available both on SEDAR+ and on our corporate website, wesdome.com. With us on today's webcast is Anthea Bath, Wesdome's President and CEO; Phil Yee, our Chief Financial Officer; Tyler Mitchelson, our COO; Jono Lawrence, SVP, Exploration and Resources; Raj Gill, SVP, Corporate Development and Investor Relations; and Kevin Lonergan, SVP, Technical Services. Following management's formal remarks, we will then open the call for questions. Now over to Anthea.

Speaker #2: I ask that you view our slide presentation for cautionary language regarding forward-looking statements and the risks factors pertaining to these statements. Please note that all figures discussed on this call are in Canadian dollars unless otherwise noted.

Speaker #2: Our press release and DNA and financial statements are available both on TDAR Plus and on our corporate website, westdome.com. With us on today's webcast is Anthea Bath, Wesdome's President and CEO; Phil Yee, our Chief Financial Officer; Tyler Mitchelson, our COO; Jonah Lawrence, SVP Exploration and Resources; Raj Gill, SVP Corporate Development and Industry Relations; and Kevin Lonergan, SVP Technical Services.

Speaker #2: Following management's formal remarks, we will then open the call for questions. And now over to Anthea.

Speaker #3: Thank you, Trish, and good morning to everyone. Support of our strong production Q1 was accompanied with record revenue net income EBITDA and operating cash flow.

Anthea Bath: Thank you, Trish, and good morning, everyone. Supported by strong production, Q1 was the company's best with record revenue, net income, EBITDA, and operating cash flow. We generated CAD 126 million in free cash flow and closed the period with over CAD 430 million in cash, even after repurchasing nearly CAD 50 million of our own shares. Beyond financial results, we are making meaningful progress on initiatives that will drive long-term value for this company. Safety remains foundational. Across both Eagle River and Kiena, we are building on a strong track record with continuously improving programs firmly in place at each site. At Eagle River, the strategy is working. We're expanding operational flexibility by opening more mining areas. Combined with better scope productivity and high mine visualization, this should translate into lower unit costs as fixed costs are spread over higher output.

Speaker #3: We generated 126 million dollars in free cash flow and closed the period with over 430 million dollars in cash. Even after repurchasing nearly 50 million dollars of our own shares.

Speaker #3: Beyond financial results, we are making meaningful progress on initiatives that will drive long-term value for this company. Safety remains foundational across both Eagle River and Kena.

Speaker #3: We are building on a strong track record, with continuous improvement programs firmly in place at each site. At Eagle River, the strategy is working.

Speaker #3: We're expanding operational flexibility by opening more mining areas. Combined with better scope productivity and higher more utilization, this should translate into lower unit costs and fixed costs of spread over higher output.

Speaker #3: The results are showing up as steady production and a strong operating cash margin. At Kena, the operational improvements implemented over the past year are starting to translate into tangible results.

Anthea Bath: The results are showing up as steady production and a strong operating cash margin. At Kiena, the operational improvements implemented over the past year are starting to translate into tangible results. Increasing operational flexibility, including the breakthrough of the ramp within the next 1 week, combined with feed from the new Presqu'île zone, marks an important inflection point for this mine. With many more strokes available at any given time, Kiena is progressing toward a more stable, consistent, and predictable operating profile and unlocking its capacity to grow. Exploration is a core pillar of this Wesdome growth story. In 2026 we are leaning in, drilling more than 270km.

Speaker #3: Increasing operational flexibility, including the breakthrough of the ramp within the next week, combined with feed from the new prescale zone marks an important inflection point for this mine.

Speaker #3: With many more stokes available at any given time, Kena is progressing toward a more stable, consistent, and predictable operating profile and unlocking its capacity to grow.

Speaker #3: Exploration is a core pillar of this Westdome growth story, and in 2026, we are leaning in, drilling more than 270 kilometers—the new slur has started with the release detailing high-grade growth at Kena, and at the end of March, at the end of March, and another update on the global model work at Eagle River earlier this week.

Anthea Bath: The news flow has started with the release detailing high-grade growth at Kiena, and at the end of March, and another update on the global model work at Eagle River earlier this week. We closed the quarter with an exploration teaching designed to give the market a clearer, deeper line of sight into the long-term prospectivity of our large land packages. With over 220 targets, many of which are in categories that are high relative probability of conversion, one thing is very clear, there's a lot more to discover, and I've no doubt we'll be mining for decades to come. As we look ahead to the updated technical reports for both Eagle River and Kiena this summer, I want to be clear about what the updates represent and why they matter.

Speaker #3: We close the quarter with an exploration teaching designed to give the market a clearer, deeper line of sight into the long-term prospectivity of our large land packages.

Speaker #3: With over 220 targets, many of which were in categories with a high rated probability of conversion, one thing is very clear: there's a lot more to discover, and I have no doubt we'll be mining for decades to come.

Speaker #3: As we look ahead to the updated technical reports for both Eagle River and Kena this summer, I want to be clear about what the updates represent and why they matter.

Speaker #3: What the market will see in our late June release is the first tangible and quantifiable output of a deliberate plan to transform Westdome. A plan that will set in motion nearly three years ago.

Anthea Bath: What the market will see in our late June release is the first tangible and quantifiable output of a deliberate plan to transform Wesdome. A plan that was set in motion nearly 3 years ago. Historically, our operations were managed around relatively short reserve lives, even though both assets sit within highly prospective mineral systems. The limitation was never geology, it was the scale of exploration and the long-term investment required to fully unlock these assets. We made a conscious decision to change the company's approach, shifting from short-term replacement toward a more growth-oriented and systematic approach, an approach designed to establish a visible organic growth pipeline. The updated technical report will demonstrate the first tangible outcome of that strategy. At Eagle River, our focus has been twofold.

Speaker #3: Historically, our operations were managed around relatively short preserved lives, even though both assets sit within highly prospective mineral systems. The limitation was never geology.

Speaker #3: It was the scale of exploration and the long-term investment required to fully unlock these assets. We made a conscious decision to change the company's approach: shifting from short-term replacement toward a more growth-oriented and systematic approach—an approach designed to establish a visible organic growth pipeline.

Speaker #3: The updated technical reports will demonstrate the first tangible outcome of that strategy. At Eagle River, our focus has been twofold. First, to add reserves to the upper sections of the mine to incrementally increase tons.

Anthea Bath: First, to add reserves to the upper sections of the mine to incrementally increase tons, to extend mine life, and to maximize effective utilization of an existing processing infrastructure. While adding high grade will always be our priority, our drilling programs are also targeting areas close to infrastructure where we can add additional economic tonnes that can be brought into the mine plan efficiently and at a relatively low discovery cost. These areas, while lower in grade than the high-grade Phoenix Zone, are still economic. They improve operational flexibility, and most importantly, they provide a top-up mill feed that can cost-effectively support the pursuit of high-grade targets in the pipeline across multiple areas in the mine. The second focus of Eagle River has been on deepening our understanding of the high-grade system.

Speaker #3: To extend mine life and to maximize effective utilization of an existing processing infrastructure. While adding high-grade, we'll always be our priority. Our drilling programs are also targeting areas close to infrastructure, where we can add additional economic tonnage that can be brought into the mine plan efficiently and at a relatively low discovery cost.

Speaker #3: These areas—while lower in grade than the high-grade firmer zone—are still economic, the improved operational flexibility, and most importantly, they provide a top-up mill fee that can cost-effectively support the pursuit of high-grade targets in the pipeline across multiple areas in the mine.

Speaker #3: The second focus of Eagle River has been on deepening our understanding of the high-grade system. We believe Eagle River has the potential to evolve beyond its historic three-year reserve life by unlocking additional areas with shallower, high-grade extensions by increasingly probable.

Anthea Bath: We believe Eagle River has the potential to evolve beyond its historic 3-year reserve life by unlocking additional areas where shallower, high-grade extensions are increasingly probable. Over time, this has the potential to improve ounce density per vertical meter and enhance the overall quality and flexibility of the mine plan. At Kiena's objectives have been slightly different. While we continue to seek opportunity to replace high-grade depletion, we also see opportunity across the land package to identify new mining fronts, including along level 33 and across the northern corridor of the property. The updated technical work at Kiena will demonstrate progress in rebuilding the high-grade inventory by advancing the pipeline of opportunities that can support higher throughput and production growth over the longer term. While Eagle River is currently focused on adding incremental ounces and operational flexibility, Kiena is focused on strengthening and expanding its pipeline.

Speaker #3: Over time, this has the potential to improve our density for vertical meter and enhance the overall quality and flexibility of the mine plan. At Kena's objectives have been slightly different.

Speaker #3: While we continue to seek opportunity to replace high-grade depletion, we also see opportunity across the land package to identify new mining fronts, including along the level 33 and across the northern corridor of this property.

Speaker #3: The updated technical work at Kena will demonstrate progress in rebuilding the high-grade imagery by advancing the pipeline of opportunities that can support higher throughput and production growth over the longer term.

Speaker #3: So while Eagle River is currently focused on adding incremental ounces and operational flexibility, Kena is focused on strengthening and expanding its pipeline. Two different priorities—reflecting two different assets at different stages—but both align with building longevity, improving consistency, and creating a stronger foundation for sustainable value creation.

Anthea Bath: Two different priorities re-reflecting two different assets at different stages, both align with building longevity, improving consistency, and creating a stronger foundation for sustainable value creation. It's important to remember that what we report in June is a snapshot in time, reflecting drilling only through the end of 2025, it's really just the beginning. We're now well into the second year of a multi-exploration program. As drilling in-intensity increases and our geologic understanding deepens, we are systematically building the platform to do far more than extend mine life. We are laying the foundation to reshape Wesdome's long-term growth profile and ultimately to redefine what this company can become. I'm pleased to say that we can pursue and fund exploration, unlocking the full potential of our large prospective land packages, all while continuing to return capital to our shareholders.

Speaker #3: It's important to remember that what we report in June is a snapshot in time, reflecting drilling only through the end of 2025, and it's really just the beginning.

Speaker #3: We're now well into the second year of our multi-exploration program. As drilling intends to increase in our geologic understanding deepens, we're systematically building the platform to do far more than extend mine life.

Speaker #3: We're laying the foundation to reshape Westdome's long-term growth profile and ultimately to redefine what this company can become. And I'm pleased to say that we can pursue and fund exploration, unlocking the full potential of our large prospective land packages, all while returning—continuing shareholders.

Speaker #3: Last evening's announcement that we're proceeding to a second front and our share buyback program is a direct reflection of that confidence. And with that, I'll hand over to Paul to walk you through the first quarter financial highlights.

Anthea Bath: Last evening's announcement that we're proceeding to a second tranche on our share buyback program is a direct reflection of that confidence. With that, I'll hand over to Phil to walk you through the Q1 financial highlights.

Speaker #2: Thank you, Anthea. Good morning, everyone. Turning to slide seven, Q1 2026 marks another record quarter. A strong gold prices and solid production continue the two-year trend of sequential financial growth.

Philip C. Yee: Thank you, Anthea. Good morning, everyone. Turning to slide 7. Q1 2026 marks another record quarter as strong gold prices and solid production continued a 2-year trend of sequential financial growth. Record results this quarter included revenue of CAD 300 million, net income of CAD 119 million or CAD 0.79 per share, EBITDA of CAD 212 million, and operating cash flow of CAD 162 million, and free cash flow of CAD 126 million or CAD 0.84 per share. Our free cash flow as a percentage of revenue is 42% and ranks among the highest in the gold sector. Margin expansion is a priority for Wesdome irrespective of gold price as the company delivers initiatives designed to reduce costs. Turning to costs on slide 8.

Philip Yee: Thank you, Anthea. Good morning, everyone. Turning to slide 7. Q1 2026 marks another record quarter as strong gold prices and solid production continued a 2-year trend of sequential financial growth. Record results this quarter included revenue of CAD 300 million, net income of CAD 119 million or CAD 0.79 per share, EBITDA of CAD 212 million, and operating cash flow of CAD 162 million, and free cash flow of CAD 126 million or CAD 0.84 per share. Our free cash flow as a percentage of revenue is 42% and ranks among the highest in the gold sector. Margin expansion is a priority for Wesdome irrespective of gold price as the company delivers initiatives designed to reduce costs. Turning to costs on slide 8.

Speaker #2: Record results this quarter included revenue of $300 million, net income of $119 million, or 79 cents per share, EBITDA of $212 million, and operating cash flow of $162 million, and free cash flow of $126 million, or 84 cents per share.

Speaker #2: Our free cash flow as a percentage of revenue is 42%, and ranks among the highest in the gold sector. Margin expansion is a priority for Wesdome. The company delivers initiatives designed to reduce costs.

Speaker #2: Turning to costs on slide eight, on a consolidated basis, all unsustained costs per ounce of gold sold were $1,707 US per ounce. ASIC at Eagle River was $1,616 per ounce, while Kena was $1,844 per ounce.

Philip C. Yee: On a consolidated basis, all-in sustaining costs per ounce of gold sold were $1,707 US per ounce. AISC at Eagle River was CAD 1,616 per ounce, while Kiena was CAD 1,844 per ounce, each driven by higher contractor, consultants, and maintenance consumable costs. The primary cost pressure point across the business is higher wages, given the competitive labor environment. We are also monitoring broader industry inflation in fuel and consumables. While our exposure is not material and availability is not a concern currently, we are taking proactive steps to mitigate potential supply chain disruptions. Corporate G&A of CAD 10 million in Q1 was in line with plan for Q1 and is expected to decrease in subsequent quarters. We are maintaining full-year consolidated production and cost guidance. Moving to slide 9. To support your modeling, I want to summarize where we are after Q1.

Philip Yee: On a consolidated basis, all-in sustaining costs per ounce of gold sold were $1,707 US per ounce. AISC at Eagle River was CAD 1,616 per ounce, while Kiena was CAD 1,844 per ounce, each driven by higher contractor, consultants, and maintenance consumable costs. The primary cost pressure point across the business is higher wages, given the competitive labor environment. We are also monitoring broader industry inflation in fuel and consumables. While our exposure is not material and availability is not a concern currently, we are taking proactive steps to mitigate potential supply chain disruptions. Corporate G&A of CAD 10 million in Q1 was in line with plan for Q1 and is expected to decrease in subsequent quarters. We are maintaining full-year consolidated production and cost guidance. Moving to slide 9. To support your modeling, I want to summarize where we are after Q1.

Speaker #2: Each driven by higher contractor, consultant, and maintenance consumable costs. The primary cost to treasure point across the business is higher wages. Given the competitive labor environment, we are also monitoring broader industry inflation in fuel and consumables. And while our exposure is not material, and availability is not a concern currently, we are taking proactive steps to mitigate potential supply chain disruptions.

Speaker #2: Corporate DNA of $10 million in Q1 was in line with plan for Q1 and is expected to decrease in subsequent quarters. We are maintaining full-year consolidated production and cost items.

Speaker #2: Moving to slide nine to support your modeling, I want to summarize where we are after the first quarter. Eagle River production is expected to be evenly distributed across all four quarters.

Philip C. Yee: Eagle River production is expected to be evenly distributed across all 4 quarters. Kiena's Q1 was the lightest quarter, with approximately 60% of annual production weighted to the H2 of the year, supported by the ramp-up at Traskville. Consolidated AISC is expected to peak in Q2, then decline as savings from supply chain initiatives are realized. Both sustaining and growth CapEx remain in line with guidance for the year. Depreciation is expected to decline following publication of our updated mineral resource and reserve statement at the end of June, as it is calculated as a percentage of 2P reserves. Exploration expense guidance is on track for CAD 30 million for the year, CAD 15 million for sites at Eagle River and Kiena. Our effective tax rate on pre-tax income remains at 35%. Turning to slide 10.

Philip Yee: Eagle River production is expected to be evenly distributed across all 4 quarters. Kiena's Q1 was the lightest quarter, with approximately 60% of annual production weighted to the H2 of the year, supported by the ramp-up at Traskville. Consolidated AISC is expected to peak in Q2, then decline as savings from supply chain initiatives are realized. Both sustaining and growth CapEx remain in line with guidance for the year. Depreciation is expected to decline following publication of our updated mineral resource and reserve statement at the end of June, as it is calculated as a percentage of 2P reserves. Exploration expense guidance is on track for CAD 30 million for the year, CAD 15 million for sites at Eagle River and Kiena. Our effective tax rate on pre-tax income remains at 35%. Turning to slide 10.

Speaker #2: Kena's Q1 was the lightest quarter, with approximately 60% of annual production weighted to the second half of the year, supported by the ramp-up at Priscilla.

Speaker #2: Consolidated ASIC is expected to peak in Q2, then decline as savings from supply chain initiatives are realized. Both sustaining and growth capex remain in line with guidance for the year.

Speaker #2: Depreciation is expected to decline following publication of our updated mineral resource and reserve statement at the end of June, as it is calculated as a percentage of 2P reserves.

Speaker #2: Expiration expense guidance is on track for $30 million for the year, $15 million per site at Eagle River and Kena. And our effective tax rate on pre-tax income remains at 35%.

Speaker #2: Turning to slide 10, as of March 31st, 2026, our cash balance grew to $431 million. Even after deploying $49 million to repurchase our shares of a substantial discount to where the shares are trading today.

Philip C. Yee: As of 31 March 2026, our cash balance grew to CAD 431 million, even after deploying CAD 49 million to repurchase our shares at a substantial discount to where the shares are trading today. Including our revolving credit facility, which is fully undrawn, total liquidity now exceeds CAD 770 million, and we expect this to continue strengthening throughout the year. Our balance sheet remains debt-free, and we are deploying capital with discipline, investing CAD 205 million in CapEx this year, with approximately 45% directed to growth and a record CAD 55 million exploration budget. In April, we completed the first tranche of our NCIB, repurchasing 3 million shares for CAD 68 million. As announced last night, we are proceeding with a second tranche to repurchase up to an additional 3 million shares.

Philip Yee: As of 31 March 2026, our cash balance grew to CAD 431 million, even after deploying CAD 49 million to repurchase our shares at a substantial discount to where the shares are trading today. Including our revolving credit facility, which is fully undrawn, total liquidity now exceeds CAD 770 million, and we expect this to continue strengthening throughout the year. Our balance sheet remains debt-free, and we are deploying capital with discipline, investing CAD 205 million in CapEx this year, with approximately 45% directed to growth and a record CAD 55 million exploration budget. In April, we completed the first tranche of our NCIB, repurchasing 3 million shares for CAD 68 million. As announced last night, we are proceeding with a second tranche to repurchase up to an additional 3 million shares.

Speaker #2: Including our revolving credit facility, which is fully undrawn, total liquidity now exceeds $770 million Canadian, and we expect this to continue strengthening throughout the year.

Speaker #2: Our balance sheet remains debt-free and we are deploying capital with discipline. Investing $205 million in capex this year with approximately 45% directed to growth and a record $55 million exploration budget.

Speaker #2: In April, we completed the first tranche of our NTIB, repurchasing $3 million shares for $68 million. As announced last night, we are proceeding with a second tranche to repurchase up to an additional $3 million shares.

Speaker #2: Given our strong and growing cash generation, we are well positioned to execute on our organic growth plans. Preserve operational and strategic flexibility and continue returning meaningful capital to shareholders.

Philip C. Yee: Given our strong and growing cash generation, we are well positioned to execute on our organic growth plans, preserve operational and strategic flexibility, and continue returning meaningful capital to shareholders. With that, I'll turn it over to Tyler to review operations.

Philip Yee: Given our strong and growing cash generation, we are well positioned to execute on our organic growth plans, preserve operational and strategic flexibility, and continue returning meaningful capital to shareholders. With that, I'll turn it over to Tyler to review operations.

Speaker #2: With that, I'll turn it over to Tyler to review operations.

Speaker #3: Thank you, Phil. And good morning, everyone. The first quarter was solid across both sites, starting with safety. We had zero lost time incidents and our total recordable incident frequency rate improved 13% year over year.

Tyler Mitchelson: Thank you, Phil. Good morning, everyone. Q1 was solid across both sites. Starting with safety, we had zero lost-time incidents, and our total recordable incident frequency rate improved 13% year over year. As our programs mature, we are enhancing our focus on critical controls and non-negotiable standards as they relate to potential high-risk incidents. Across both sites, people remain our biggest challenge, but also our biggest opportunity. Attracting and retaining quality talent is a top priority. Its importance to safety, operational stability, and cost control cannot be understated. Moving to slide 12. In Q1, Eagle River performed in line with expectations, delivering 28,000 ounces, roughly 25% of the full-year guidance midpoint. Average grade came in at 12.5 grams per tonne, as anticipated, reflecting planned mine sequencing and processing of 11,000 tonnes from a lower-grade stockpile.

Speaker #3: As our programs mature, we are enhancing our focus on critical controls and non-negotiable standards as they relate to high-detect to potential high-risk incidents. Across both sites, people remain our biggest challenge, but also our biggest opportunity.

Speaker #3: Attracting and retaining quality talent is a top priority, and its importance to safety, operational stability, and cost control cannot be understated. Moving to slide 12.

Speaker #3: In Q1, Eagle River performed in line with expectations, delivering $28,000 ounces, roughly 25% of the full year guidance midpoint. Average grade came in at 12.5 pounds per ton as anticipated, reflecting planned mine sequencing and processing of 11,000 tons from a lower grade stockpile.

Speaker #3: We are starting to see some of the results of a global model work coming into production. Opportunistic planning of incremental lower-grade areas is providing more tons to the mine plant for the rest of the year.

Tyler Mitchelson: We are starting to see some of the results of our global model work coming into fruition. Opportunistic planning of incremental lower-grade areas is providing more tons to the mine plan for the rest of the year. Furthermore, we can also measure the productivity improvements from this material. Net of one-off costs, we're seeing a direct reduction in our cost per ton, proving to us that the strategy is working. Strategic initiatives undertaken at both the mine and the mill are starting to pay off. Mill throughput has been increasing on a fairly consistent basis, averaging approximately 800 tons per day compared to an average of 600 in 2024 and 700 in 2025. Stope productivity is improving, up more than 20% quarter over quarter and trending upward. Proactive maintenance is now fully embedded site-wide, with 80% of our vendors in schedule compliance.

Speaker #3: Furthermore, we can also measure the productivity improvements from this material. Net of one-off costs, we're seeing a direct reduction in our cost per ton.

Speaker #3: Proving to us that the strategy is working. Strategic initiatives undertaken at both the mine and the mill are starting to pay off. Mill throughput has been increasing on a fairly consistent basis.

Speaker #3: Averaging approximately 800 tons per day compared to an average of 600 in 2024 and 700 in 2025. Stoke productivity is improving, up more than 20% quarter over quarter and trending upward.

Speaker #3: Proactive maintenance is now fully embedded site-wide. With 80% or better scheduled compliance, this is in line with industry best practices and is driving measurable reliability gains.

Tyler Mitchelson: This is in line with industry best practices and is driving measurable reliability gains. The path to 1,000 tonnes per day is clear to us. To get there, underground flexibility is our top priority, and the required processes, equipment, and infrastructure are being put in place. As part of our longer-term strategy, we continue to invest in key projects at Eagle River. Capital spending is stepping up through Q2 and Q3. We are making a critical investment in a full camp replacement, something that will dramatically increase our ability to attract and retain talent at Eagle River. As an added benefit, replacing the camp will allow us to realize significant operational savings as we consolidate 13 separate structures into one building.

Speaker #3: The path to 1,000 tons per day is clear to us. To get there, underground flexibility is our top priority and the required processes equipment and infrastructure are being put in place.

Speaker #3: As part of our longer-term strategy, we continue to invest in key projects at Eagle River, and capital spending is stepping up through the second and third quarter.

Speaker #3: We are making a critical investment in a full camp replacement, something that will dramatically increase our ability to attract and retain talent at Eagle River.

Speaker #3: And as an added benefit, replacing the camp will allow us to realize significant operational savings as we consolidate 13 separate structures into one building.

Speaker #3: We are also gearing up to support higher throughput rates and increased scale in the years ahead, with additional capital for targeted power and tailings improvements.

Tyler Mitchelson: We are also gearing up to support higher throughput rates and increased scale in the years ahead with additional capital for targeted power and tailings improvements. After a few months in this role, what is immediately evident to me is the breadth and depth of the team at Wesdome. Strong on-site leadership and a mindset of continuous improvement gives me confidence in our ability to execute on our long-term strategy. Moving to slide 13. Kiena is off to a solid start in 2026, producing 17,500 ounces in what we anticipate will be the softest quarter of the year. With receipt of the Presqu'île operating permit in January, we have begun processing development ore and stock pile, contributing more than 2,000 ounces this quarter. Overall process grades were in line with our reserve grade, averaging 10 grams a tonne for the quarter.

Speaker #3: After a few months in this role, what is immediately evident to me is the breadth and depth of the team at Eagle. Strong on-site leadership and a mindset of continuous improvement gives me confidence in our ability to execute on our long-term strategy.

Speaker #3: Moving to slide 13. Kena is off to a solid start in 2026, producing 17,500 ounces in what we anticipate will be the softest quarter of the year.

Speaker #3: With the receipt of the Chris Heal operating permit in January, we have begun processing development ore and stockpiles. Contributing more than 2,000 ounces of network.

Speaker #3: Overall process rates were aligned with our reserve rate, averaging 10 pounds per ton for the quarter. I'm pleased to report that the RAV connection to Kena Deep is imminent.

Tyler Mitchelson: I'm pleased to report that the ramp connection to Kiena Deep is imminent. With this, we'll have a second means of accessing the mine, which materially reduces the risk associated with having our shaft as a single point of entry and represents another major milestone for the operational flexibility at Kiena. Ventilation room development continues to progress. With fan installation and commissioning targeted for around year-end. This marks the last step in creating operational headroom we need to capture new opportunities underground. Importantly, capital spending in Kiena tapers off in the second half as both the ramp and the ventilation programs are brought to completion. Beyond the ramp, we've done a lot of work to create operational flexibility, and we now have three active mining horizons in Kiena Deep, up from one just a year ago. The impact was tangible in Q1.

Speaker #3: With this, we'll have a second means of accessing the mine, which materially reduces the risk associated with having our shafts as a single point of entry.

Speaker #3: And represents another major milestone for the operational flexibility at Kena. Ventilation room development continues to progress. Expanding installation fan installation and commissioning targeted for around year-end.

Speaker #3: This marks the last step in creating operational headroom. We need to capture new opportunities underground. And importantly, capital spend in Kena tapers off in the second half of both the RAV and the ventilation programs are brought to completion.

Speaker #3: Beyond the RAV, we've done a lot of work to create operational flexibility. And we now have three active mining horizons in Kena Deep. Up from one just a year ago.

Speaker #3: The impact was tangible in Q1. For the first time, we marked two stokes simultaneously. A meaningful step forward that reflects several quarters of delivered targeted work.

Tyler Mitchelson: For the first time, we marked two stopes simultaneously, a meaningful step forward that reflects several quarters of deliberate, targeted work. We also just started mining our first stope on level 136, giving us a third level open in Kiena Deep concurrently, a major milestone by any measure. In addition, we are developing at Herschel, with production ramping up through the H2 of the year. With new underground drifts in place, we are seeing noticeably more effective drilling across the operation. As a result, stability is beginning to take hold. Equipment delays have been dramatically reduced, allowing us to shift our focus towards productivity. This reflects the impact of several quarters of sustained work to improve our maintenance processes, and we're seeing that translate into stronger equipment availability.

Speaker #3: We also just started mining our first of a one-level 136. Giving us a third level open in Kena Deep concurrently. A major milestone by any measure.

Speaker #3: In addition, we are developing a Chris Heal with production wrapping up through the back half of the year. And with new underground drifts in place, we are seeing noticeably more effective drilling across the operation.

Speaker #3: As a result, stability is beginning to take hold. Equipment delays have been dramatically reduced, allowing us to shift our focus towards productivity. This reflects the impact of several quarters of sustained work to improve our maintenance processes and we're seeing that translate into stronger equipment availability.

Speaker #3: Since rolling out our operating model this quarter, operating delays relative to the previous year's performance are down 70%. A clear indicator that the changes we're making are working.

Tyler Mitchelson: Since rolling out our operating model this quarter, operating delays relative to the previous year's performance are down 70%. A clear indicator the changes we're making are working. For the balance of 2026, our priority is to embed these operating processes, tighten our schedule adherence, and continue reducing variability across the operation. Looking ahead, Q2 is off to a strong start. Production ramped up through March and exceeded 7,000 ounces in April. Development rate at Herschel has accelerated. First stope is being prepared for mining before the end of Q2. Our first near-term surface ore body, Presqu'île. We currently have a high-grade stockpile, excuse me, of development work from Herschel and expect to process it over the next few weeks, delivering a step change over Q1. Full production from Herschel is expected by year-end.

Speaker #3: For the balance of 2026, our priority is to embed these operating processes and tighten our schedule adherence and continue reducing variability across the operation.

Speaker #3: Looking ahead, Q2 is off to a strong start. Production ramped up through March and exceeded 7,000 ounces in April. Development rates at Chris Heal have accelerated.

Speaker #3: First hope is being prepared for mining before the end of Q2. Our first near-term surface ore body at Kena. We currently have a high-grade stockpile—excuse me—development ore from Chris Heal.

Speaker #3: And expect to process it over the next few weeks. Delivering a step change over Q1. Full production from Chris Heal is expected by year-end.

Speaker #3: I'm genuinely seeing the impact that leadership stability can bring to the operation. Kena is stabilizing, and it is progressing towards the operation we know it can become.

Tyler Mitchelson: I'm genuinely seeing the impact that leadership stability is bringing to the operation. Kiena is stabilizing, and it is progressing towards the operation we know it can become. There is still work ahead of us. We're addressing it systematically, one item at a time. Boxes are being ticked, projects are being delivered. Kiena is on track, and we are confident in the plan. I'd like to make one final comment on cost before I pass across to Jonathan. As mentioned at the beginning, the importance of labor availability to cost cannot be understated. Continued tightness in the labor market, not just in Val d'Or, across the industry, is driving our reliance on contractors to supplement our labor needs. This is not new. Over the last several years, we've been working actively on our attraction and retention programs, and these continue to be a top priority.

Speaker #3: There is still work ahead of us. We're addressing it systematically, one item at a time. Bosses are being tipped. Projects are being delivered. Kena is on track and we are confident in the plan.

Speaker #3: I'd like to make one final comment on cost before I pass across to John. As mentioned at the beginning, the importance of labor availability to cost cannot be understated.

Speaker #3: Continued tightness in the labor market, not just in Bell Door, but across the industry, is driving our reliance on contractors to supplement our labor needs.

Speaker #3: This is not new. Over the last several years, we've been working actively on our attraction and retention programs. And these continue to be the top priority.

Speaker #3: Our commitment to transitioning labor to our own employees is resolute, but it will take time. And now, over to John for explanation.

Tyler Mitchelson: Our commitment to transitioning labor to our own employees is resolute, but it will take time. Now over to Jonathan for exploration leadership.

Speaker #4: Thank you, John. And good morning, everyone. 2026 is a landmark year for exploration. We're drilling more than 270,000 meters, up significantly from 200,000 meters in 2025.

Jono Lawrence: Thank you, Tyler, and good morning, everyone. 2026 is a landmark year for exploration. We're drilling more than 270,000 meters, up significantly from 200,000 meters in 2025. Our new hybrid strategy balances reserve replacement with growth across all time horizons, keeping the pipeline full and mineral inventories moving in the right direction. We're not just drilling more, we're drilling smarter. Data integration and technology are driving how we identify geologic patterns, mineralization trends, and resource gaps. On 3 March, we hosted our 2-hour analyst teaching, walking through our evolving strategy to growing target pipeline and the disciplined process behind our resource growth and new discoveries. Our 2026 exploration program is off to a strong start at Eagle River, with results to date supporting resource growth and conversion potential.

Speaker #4: Our new hybrid strategy balances reserve replacement with growth across all time horizons, hitting the pipeline full and mineral inventories moving in the right direction.

Speaker #4: We're not just drilling more; we're drilling smarter. Data integration and technology are driving how we identify geologic patterns, mineralization trends, and resource gaps. On March 30th, we hosted our two-hour analyst teaching walking through our evolving strategy to growing target pipeline and the discipline process behind our resource growth and new discoveries.

Speaker #4: By 2026, exploration program is off to a strong start for Eagle River. With results to date supporting resource growth and conversion potential. Slide 15 highlights the progress made at two key zones, six central, and the adjacent 800 zone.

Jono Lawrence: Slide 15 highlights the progress made at 2 key zones, Six Central and the adjacent Eight Hundred Zone. In Six Central, 4 holes tested a down-plunge extension of the high-grade shoot, and the results delivered. We confirmed a further 100-meter extension, bringing the total to 700 meters since discovery in late 2024. At the Eight Hundred Zone, 11 holes focused on infill and conversion, demonstrating grade continuity at depth and sharpening our confidence in the zone's geometry and grade distribution. Critically, both zones, including their high-grade shoots, remain open at depth, making them a priority focus for high-grade reserve replacement. We've also been drilling deep surface holes beneath both zones to test for continuity, and we plan to issue an update on these results in the coming weeks. Turning to slide 16, a look at our global model outcomes.

Speaker #4: In six central, four holes head for the down plunge extension of the high-grade chute, and the results delivered. We confirmed a further 100-meter extension, bringing the total to 700 meters since discovery in late 2024.

Speaker #4: At the 800 zone, 11 holes focused on infill and conversion, demonstrating great continuity of depth and sharpening our confidence in the zone's geometry and grade distribution.

Speaker #4: Critically, both zones—including the high-grade chutes—remain open at depth, making them a priority focus for high-grade reserve replacement. We've also been drilling deep surface holes beneath both zones to test the continuity.

Speaker #4: And we plan to issue an update on these results in the coming weeks. Turning to slide 16, a look at our global model outcomes.

Speaker #4: Last year, we drilled over 40,000 meters on global model targets. Since the start of this year, we've added another 16,000 meters. Of the 32 initial targets, 9 remain untested or partially tested.

Jono Lawrence: Last year, we drilled over 40,000 meters on global model targets. Since the start of this year, we've added another 16,000 meters. Of the 32 initial targets, 9 remain untested or partially tested, and the number of targets outside existing resources continues to evolve as the program advances. This year, we're planning 80,000 to 90,000 meters of conversion drilling, which includes targets outside the global model. 1 example stands out as a strong demonstration of what this program can deliver, the seven eleven zone. In Q1, we targeted a previously untested portion of the seven eleven, centrally located at the mine with established underground access and at intermediate depths. A textbook global model target. 17 holes later, we've confirmed continuity and high-grade mineralization with multiple intercepts over 10 grams per tonne.

Speaker #4: And the number of targets outside existing resources continues to evolve as the program advances. This year, we're planning 80,000 to 90,000 meters of conversion drilling, which includes targets outside the global model.

Speaker #4: One example stands out as a strong demonstration of what this program can deliver with 711 zone. In Q1, we targeted a previously untested portion of the 711, essentially located in the mine with established underground access and an intermediate depth.

Speaker #4: The textbook global model target. Seventeen holes later, we've confirmed continuity and high-grade mineralization with multiple intercepts over 10 grams per ton. Confirming not just mineralization, but continuity and high grades, this is particularly encouraging.

Jono Lawrence: Confirming not just mineralization, but continuity and high grades is particularly encouraging, especially in a mine with 30 years of production history. This area remains open, we're pushing to bring it into the mine plan in the short to medium term. Before leaving Eagle River, there are other areas that are growing. Firstly, Falcon 311. Drilling has identified potential mineralization extending 100m to the west and 150m down dip. Secondly, at the 711 Zone, we've confirmed continuity at the base. Thirdly, at Falcon 720 Zone, drilling's improved confidence in geometry, with the zone remaining open at depth towards surface and to the west. Together, these results strengthen our confidence in near-term conversion opportunities and the broader resource growth potential at Eagle River.

Speaker #4: Especially in line with 30 years of production history, this area remains open, and we're pushing to bring it into the mine plan in the short to medium term.

Speaker #4: Before leaving Eagle River, there are other areas that are growing. Firstly, Falcon 311. Drilling has identified potential mineralization extending 100 meters to the west and 150 meters down deep.

Speaker #4: Secondly, at the 711 zone, we've confirmed continuity at the base. And thirdly, at Falcon 720, drilling has improved confidence in geometry with the zone remaining open at depth towards surface and to the west.

Speaker #4: Together, these results strengthen our confidence in near-term conversion opportunities and the broader resource growth potential at Eagle River. Looking ahead, we'll be releasing results from some of our longest drill holes today, extending more than 1,500 meters from surface.

Jono Lawrence: Looking ahead, we will be releasing results from some of our longest drill holes to date, extending more than 1,500 meters from surface. We plan to publish these proof-of-concept results ahead of our June technical report release. Moving to Kiena, the completion of the exploration platform on level 134 has been truly transformative, improving drilling angles and significantly reducing drill hole distances into Kiena Deep and the B zones. In Q1, we announced the discovery of 6 new lenses at Kiena, a direct outcome of enhanced drilling access. 3 of these new lenses were identified in Kiena Deep, 1 on the A2 structure and 2 in the Footwall Zone. Beyond the new lens discoveries, we've also seen increased continuity of both known lenses in Kiena Deep and Footwall Zone, with expanded vertical and lateral extent.

Speaker #4: We plan to publish these proof of concept results ahead of our June technical report release. Moving to Kena, the completion of the exploration platform on level 134 has been truly transformative.

Speaker #4: Improving drilling angles and significantly reducing drill hole distances into Kena Deep and the B zones. In Q1, we announced the discovery of six new lenses at Kena, a direct outcome of enhanced drilling access.

Speaker #4: Three of these new lenses were identified in Kena Deep. One on the A2 structure and two in the foot wall zone. Beyond the new lens discoveries, we've also seen increased continuity of both known lenses in Kena Deep and foot wall zone.

Speaker #4: With expanded vertical and lateral extents. We expect this to drive meaningful mineralization growth in Kena Deep over the medium term translating into higher ounces per vertical meter.

Jono Lawrence: We expect this to drive meaningful mineralization growth in Kiena Deep over the medium term, translating into higher ounces per vertical meter. Exploration drilling in Kiena Deep has continued during the quarter, with holes now testing a previously reported intercept on the far side of the Norbenite Fault. An historical drill hole in this area intercepted more than 80 meters at 10 grams per tonne, and we've been actively following up around that intercept. Drilling through the Norbenite Fault presents technical challenges. A discovery in this area would be genuinely transformative for the asset. We look forward to providing an update to the market later this year. To slide 18, we announced the discovery of three new lenses at B Zone in Q1, along with the identification of high-grade mineralization within the zone.

Speaker #4: Exploration drilling in Kena Deep has continued during the quarter with holes now testing a previously reported intercept on the far side of the northern ice fault.

Speaker #4: An historical drill hole in this area intercepted more than 80 meters at 10 grams per ton, and we've been actively following up around that intercept.

Speaker #4: Drilling through the northern ice fault presents technical challenges. However, a discovery in this area would be genuinely transformative for the athletes. With a forward tube providing an update to the market later this year.

Speaker #4: To slide 18, we announced the discovery of three new lenses at B zone in Q1, along with the identification of high-grade mineralization within the zone.

Speaker #4: Continued drilling and improved angles have allowed us to interpret reinterpret the zone we're now modeling it as four distinct lenses rather than a single lower-grade lens.

Jono Lawrence: Continued drilling and improved angles have allowed us to interpret, reinterpret the zone. We're now modeling it as four distinct lenses rather than a single lower-grade lens. We've also identified a corridor of higher-grade intercepts that has the potential to improve the economics of the zone. This area is a high priority, given its proximity to existing infrastructure adjacent to Kiena Deep. Should we define economic mineralization here, the path to production would be relatively straightforward. A brief update on the remainder of the Kiena program. Drilling has commenced at the BC zone, another prospective ore source located near underground infrastructure. We completed 10 surface holes at a target south of the Kiena Mine in an area with geology analogous to Malartic Mine. Look for updates on both programs in the coming months.

Speaker #4: We've also identified a corridor of higher-grade intercepts that has potential to improve the economics of the zone. This area is a high priority given its proximity to existing infrastructure adjacent to Kena Deep.

Speaker #4: Should we define economic mineralization here, the path of production would be relatively straightforward. A brief update in the remainder of the Kena program. Drilling has commenced at the VC zone, another prospective ore source located near underground infrastructure.

Speaker #4: And we completed 10 surface holes at a target south of the Kena mine in an area with geology analogous to the Milatic mine. Look for updates on both programs in the coming months.

Speaker #4: Our surface exploration program is set to ramp up in the coming weeks as seasonal conditions improve. Surface drilling has been mobilized to Shawkey, will be planned to drill for several months through the summer.

Jono Lawrence: Our surface exploration program is set to ramp up in the coming weeks as seasonal conditions improve. Surface rigs have been mobilized to Shorty. We'll be planning to drill for several months through the summer. We're also looking forward to deploying our large diamond drills at Northwest, West Zone, Cisco, and Dubuisson. There's a great deal of activity ahead, and we'll keep the market informed as the results come in. Operator, you may now open the line to questions.

Speaker #4: We're also looking forward to deploying our barge-mounted drills at northwest Westdome, Cisco, and Dubeson. There's a great deal of activity ahead, and we'll keep the market informed as the results come in.

Speaker #4: Operator, you may now open the line for questions.

Speaker #1: Thank you. If you would like to ask a question, please press star one in your telephone keypad. If you would like to withdraw your question, simply press star one again.

Operator 2: Thank you. Your first question comes from a line of Luke Bertozzi from CIBC.

Operator: Thank you. Your first question comes from a line of Luke Bertozzi from CIBC.

Speaker #1: Your first question comes from a line of Luke Bertozzi from CIBC. Your line is open.

Speaker #5: Thank you, Operator, and good morning, Anthea and team. Congratulations on the strong quarter. I'd just like to get a sense of the cadence of buybacks going forward.

Luke Bertozzi: Thank you, operator, and good morning, Anthea Bath team. Congratulations on the strong quarter. I'd just like to get a sense of the cadence of buybacks going forward. I believe in the past you viewed the buyback as an opportunity to repurchase shares when they're trading below net asset value. Does that continue to be the view or should we expect buybacks to continue regardless of share price fluctuation?

Speaker #5: I believe in the past, you've viewed the buyback as an opportunity to repurchase shares when they're trading below net asset value. Does that continue to be the view, or should we expect buybacks to continue regardless of share price fluctuation?

Speaker #6: Yeah, hi, Luke. It's Phil. yeah, I would say, you know, the strategy going forward is, is, is really to be opportunistic. as we have in the past.

Philip C. Yee: Yeah. Hi, Luke. It's Phil. Yeah, I would say, you know, the strategy going forward is really to be opportunistic, as we have in the past, you know, based on NAV per share. As you know, we've announced a second tranche. As we continue to grow our cash, I would say that we will continue to look for further opportunities as well.

Philip Yee: Yeah. Hi, Luke. It's Phil. Yeah, I would say, you know, the strategy going forward is really to be opportunistic, as we have in the past, you know, based on NAV per share. As you know, we've announced a second tranche. As we continue to grow our cash, I would say that we will continue to look for further opportunities as well.

Speaker #6: you know, based on, on, on now, now per share. and as you know, we, you know, we've, we've announced second tranche. and as, as we continue to grow our cash, I would say that we will continue to look at further opportunities as well.

Speaker #5: Okay. Thanks. That's it for my questions.

Luke Bertozzi: Okay, thanks. That's it for my questions.

Speaker #1: Your next question comes from a line of Allison Carson from Desjardins. Your line is open.

Operator 2: Your next question comes from the line of Allison Carson from Desjardins. Your line is open.

Operator: Your next question comes from the line of Allison Carson from Desjardins. Your line is open.

Speaker #7: Thank you. Good morning, Anthea and team, and thanks for taking my question. My first question is just on Kena. It's great to hear that things are ramping up at Preskill.

Allison Carson: Thank you. Good morning, Nancy and team, and thanks for taking my question. My first question is just on Kiena. It's great to hear that things are ramping up at Presqu'île. Can you give us a little bit more detail on the contribution we should expect from Presqu'île in Q2 in terms of production?

Speaker #7: Can you give us a little bit more detail on the contribution we should expect from Preskill in Q2 in terms of production?

Speaker #6: Yeah, sure. Hi, it's I'm hand over to Tyler for

Anthea Bath: Yeah, sure. I'm gonna hand over to Tyler for this one.

Speaker #8: Morning. yeah, we're, as we go into Q2, we're gonna start the stoking, actually, at the end of, of June. So we'll see the ramp up.

Tyler Mitchelson: Morning. yeah, as we go into Q2, we're gonna start the stoping actually at the end of June. We'll see the ramp up. Generally, you'll see a 60/40 split between Kiena Mine and Presqu'île, towards the end of the year.

Speaker #8: Generally, you'll see a 60, 40 split between Kena Deep and, a-and Preskill. towards the end of the year, so.

Speaker #7: So, will we get any production from Preskill in Q2, though? You said you were going to process some low-grade, or some of the stockpiles as well.

Allison Carson: Will we get any production from Presqu'île in Q2, though? You said you were gonna process some low grades or some of the stockpiles as well.

Speaker #8: Yeah, we're continuing to do development, in Q2. So we're pulling development more in the first stoke. Should be coming out, i-it the s-second part of Q2.

Tyler Mitchelson: Yeah, we're continuing to do development, in Q2. We're pulling development, and we're in the first stope. Should be coming out, the second part of Q2.

Speaker #7: Okay, great. and then my next question is just also on, shareholder capital return. You know, it's great to see you expanding the NCIB. Are you looking at linking your capital return program to anything like a percentage of free cash flow in the future?

Allison Carson: Okay, great. My next question is just also on shareholder capital return. You know, it's great to see you expanding the NCIB. Are you looking at linking your capital return program to anything like a percentage of free cash flow in the future?

Anthea Bath: Okay. Phil.

Philip C. Yee: Hi, Allison. It's Phil. I mean, the focus right now is really on the second tranche of the NCIB, to be consistent, you know, As I mentioned earlier, you know, we look at being opportunistic, in that program. As we grow our cash, you know, we'll look at other options to expand our capital allocation strategy. We haven't finalized our approaches at this point yet, but obviously, you know, all the various options are being considered, and I would say that's one of them.

Speaker #8: hi, Allison. It's, it's Phil. I mean, the focus right now is really on the second tranche of the NCIB. to be consistent, you know, from a, as I mentioned earlier, you know, we, we look at being offered opportunistic in, in that, in that program.

Philip Yee: Hi, Allison. It's Phil. I mean, the focus right now is really on the second tranche of the NCIB, to be consistent, you know, As I mentioned earlier, you know, we look at being opportunistic, in that program. As we grow our cash, you know, we'll look at other options to expand our capital allocation strategy. We haven't finalized our approaches at this point yet, but obviously, you know, all the various options are being considered, and I would say that's one of them.

Speaker #8: And then as we grow our cash, you know, we'll look at other options to, to expand our, our capital location strategy. and, you know, we haven't finalized our approaches at this point yet, but obviously, you know, all, all the various options are being considered.

Speaker #8: And I would say that's one of them.

Speaker #7: Okay, great. Well, that's it for me. Thanks, and congratulations on the quarter.

Allison Carson: Okay, great. Well, that's it for me. Thanks, and congratulations on the quarter.

Speaker #8: Thank you.

Philip C. Yee: Thank you.

Philip Yee: Thank you.

Speaker #1: Again, if you would like to ask a question, press star one in your telephone keypad. We'll pause for just a moment. And there are no further questions.

Operator 2: Again, if you'd like to ask a question, press star one in your telephone keypad. We'll pause for just a moment. There are no further questions. This does conclude today's conference call. Thank you for your participation. You may now disconnect.

Operator: Again, if you'd like to ask a question, press star one in your telephone keypad. We'll pause for just a moment. There are no further questions. This does conclude today's conference call. Thank you for your participation. You may now disconnect.