Q2 2026 DPM Metals Inc Earnings Call

July 31, 2026

Speaker #1: After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone.

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Speaker #1: I would now like to hand the conference over to your speaker for today, Jennifer Cameron. Please go ahead.

Speaker #2: Thank you, and good morning. I’m Jennifer Cameron, Director of Investor Relations, and I’d like to welcome you to the Dundee Precious Metals second quarter conference call.

Jennifer Cameron: Thank you. Good morning. I am Jennifer Cameron, Director of Investor Relations, and I would like to welcome you to the DPM Metals Q2 conference call. Joining us today are members of our senior management team, including David Rae, President and CEO, and Navin Dyal, Chief Financial Officer. Before we begin, I would like to remind you that all forward-looking information provided during this call is subject to the forward-looking qualification, which is detailed in our news release and incorporated in full for the purposes of today's call. Certain measures referred to during this call are not measures recognized under IFRS and are referred to as non-GAAP measures or ratios. These measures have no standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by DPM are based on management's reasonable judgment and are consistently applied.

Speaker #2: Joining us today, our members of our senior management team, including David Rae, President and CEO, and Navin Dial, Chief Financial Officer. Before we begin, I'd like to remind you that all forward-looking information provided during this call is subject to the forward-looking qualification, which is detailed in our news release and incorporated in full for the purposes of today's call.

Speaker #2: Certain measures referred to during this call are not measures recognized under IFRS and are referred to as non-GAAP measures or ratios. These measures have no standardized meaning under IFRS and may not be comparable to similar measures presented by other companies.

Speaker #2: The definitions established in calculations performed by DPM are based on management's reasonable judgment and are consistently applied. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.

Jennifer Cameron: These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Please refer to the non-GAAP financial measures section of our most recent MD&A for reconciliations of these non-GAAP measures. Please note that unless otherwise stated, operational and financial information communicated during this call are related to continuing operations and have generally been rounded. References to 2025 pertain to the comparable period in 2025, and references to averages are based on midpoints of our outlook or guidance. I will now turn the call over to David Rae.

Speaker #2: Please refer to the non-GAAP financial measures section of our most recent MD&A for reconciliations of these non-GAAP measures. Please note that, unless otherwise stated, operational and financial information communicated during this call is related to continuing operations and has generally been rounded. References to 2025 pertain to the comparable period in 2025, and references to averages are based on midpoints of our outlook or guidance.

Speaker #2: I'll now turn the call over to David Rae.

David Rae: Good morning. Thank you all for joining us. I want to start by recognizing the dedication of our teams across all operations, whose commitment to safety, operational excellence, and responsible mining continues to drive our success. We delivered exceptional results in the Q2, generating record free cash flow and earnings while continuing to advance our growth strategy. The ongoing ramp-up of the Vareš mine and continued advancement of our growth pipeline, including the major discovery of the Brestovac South porphyry, have further demonstrated DPM's position as a growing European-focused precious metals producer. Moving to the highlights of the Q2. We produced approximately 103 ounces gold equivalent and remain firmly on track to achieve our 2026 production guidance for the 12th consecutive year.

Speaker #3: Good morning, and thank you all for joining us. I want to start by recognizing the dedication of our teams across all operations, whose commitment to safety, operational excellence, and responsible mining continues to drive our success.

Speaker #3: We delivered exceptional results in the second quarter, generating free cash flow and earnings while continuing to, sorry, record free cash flow and earnings while continuing to advance our growth strategy.

Speaker #3: The ongoing ramp-up of the various mines and continued advancement of our growth pipeline, including the major discovery of the Brevenny South Porphyry, have further demonstrated DPM's position as a growing, European-focused precious metals producer.

Speaker #3: Moving to the highlights of the second quarter, we produced approximately 103,000 ounces gold equivalent and remain firmly on track to achieve our 2026 production guidance for the 12th consecutive year.

Speaker #3: We continue to deliver strong margins with an all-in sustaining cost of $1,214 per ounce of gold equivalent sold, compared to an average realized gold price of $4,375 per ounce.

David Rae: We continue to deliver strong margins with an all-in sustaining cost of $1,214 per ounce gold equivalent sold, compared to an average realized gold price of $4,375 per ounce. We generated a record $227 million in free cash flow, driven by strong operating performances, the ramp-up of Vareš drives production growth. We continue to return capital to shareholders, returning $58 million or 25% of free cash flow to our share buybacks and dividend payments. We ended the quarter with $761 million of cash and $1.2 billion of total liquidity. Let me now turn to our operations and growth projects in more detail, starting with Vareš. We are making significant progress at Vareš, and we are on track to achieve the ramp-up to full production by year-end. We are achieving development rates over 400 meters per month and have done so since October last year.

Speaker #3: We generated a record 227 million dollars of free cash flow driven by strong operating performances, the ramp-up of various drives production growth. We continue to return capital to shareholders, returning $58 million or $25% of free cash flow to our share buybacks and dividend payments.

Speaker #3: And we ended the quarter with 761 million dollars of cash and 1.2 billion dollars of total liquidity. Let me now turn to our operations and growth projects in more detail, starting with various.

Speaker #3: We're making significant progress at various stages, and we're on track to achieve the ramp-up to full production by year-end. We are achieving development rates of over 400 meters per month and have done so since October last year.

Speaker #3: We've processed 117,000 tons in the quarter and a 48% increase quarter over quarter. The planned shutdown of the processing plant to complete tie-ins for the additional tailings filter was completed in 7 days, well ahead of schedule.

David Rae: We processed 117,000 tons in the quarter, a 48% increase quarter-over-quarter. The planned shutdown of the processing plant to complete tie-ins for the additional tailings filter was completed in 7 days, well ahead of schedule. This allows for reduced downtime in H2 when we anticipate higher production rates. Vareš produced approximately 35,000 gold equivalent ounces during Q2, with an all-in sustaining cost of $563 for a gold equivalent ounce sold. Navin will have some additional color on the all-in sustaining cost at Vareš and our guidance expectations. We are on track to achieve the ramp-up to the 850,000 ton per year run rate by year-end. During the quarter, we started commissioning of the second water treatment plant. Construction of the paste backfill plant is well set and the second tailings sort of continue to advance.

Speaker #3: This allows for reduced downtime in the second half of the year when we anticipate higher production rates. Various produced approximately 35,000 gold equivalent ounces during the second quarter, with an all-ins sustaining cost of $563 per gold equivalent ounce sold.

Speaker #3: Navin will have some additional color on the all-ins sustaining cost out in various, and our guidance expectations. We are on track to achieve the ramp-up to the 850,000 ton per year run rate by year-end.

Speaker #3: During the quarter, we started commissioning of the second water treatment plant. Construction of the pace backfill plant is well set, and the second tailings filter continue to advance.

David Rae: Both of these are expected to be operational before the end of the year. We initiated our surface drilling program during Q2, drilling at priority targets at the Piti Barovica area, alongside advancing 3D models and conducting geophysical surveys to support target generation. Most importantly, we progressed the development of our future leadership for Vareš, including key positions for mining, processing, technical services, finance, HR, and legal, and laying the foundation for our long-term success in the country. In short, Vareš is exceeding our expectations and we are excited about its contribution to our growth in the years ahead. Turning now to Chelopech. Our flagship operation delivered solid production of approximately 57,000 gold equivalent ounces in Q2, with an all-in sustaining cost of $1,174 for gold equivalent ounce sold. It is on track to achieve its guidance for the year.

Speaker #3: Both of these are expected to be operational before the end of the year. We initiated our surface drilling program during the second quarter, drilling at priority targets at the Rapizi-Borobudja area, alongside advancing 3D models and conducting geophysical surveys to support target generation.

Speaker #3: Most importantly, we've progressed the development of our future leadership for various areas, including key positions in mining, processing, technical services, finance, HR, and legal, and are laying the foundation for our long-term success in the country.

Speaker #3: In short, various is exceeding our expectations, and we're excited about its contribution to our growth in the years ahead. Turning now to Chalapetch, our flagship operation delivered solid production of approximately 57,000 gold equivalent ounces, in the second quarter, with an all-ins sustaining cost of $1,174 per gold equivalent ounce sold.

Speaker #3: And it is on track to achieve its guidance for the year. We're very pleased with the progress of the Wet Zone target. Delineation drilling continued during the second quarter, and results confirmed and extended the high-grade mineralization.

David Rae: We are very pleased with the progress of the Wedge Zone target. Delineation drilling continued during Q2, and results confirmed and extended the high-grade mineralization. This mineralized zone is currently defined over approximately 170 meters along strike, with 130 meters in width and 300 meters of vertical extent. The target remains open along strike and down dip, with strong potential for further expansion. Initial metallurgical test work indicates that mineralization is amenable to flotation processing using the existing flow sheet at the Chelopech plant, supporting the Wedge Zone's potential to augment the existing mine plan. We are planning to complete an initial mineral resource estimate for the Wedge Zone by year-end as part of our annual mineral resource and mineral reserve update. We are also actively evaluating decline contractors and advancing technical work to support an economic study for Wedge.

Speaker #3: This mineralized zone is currently defined at approximately 170 meters along strike, with 130 meters in width and 300 meters of vertical extent. The target remains open along strike and down dip, with strong potential for further expansion.

Speaker #3: Initial metallurgical test work indicates that the mineralization is amenable to flotation processing, using the existing flowsheet at the Chalapetch plant. Supporting the wet zone's potential to augment the existing mine plant.

Speaker #3: We are planning to complete an initial mineral resource estimate for the wet zone by year-end, as part of our annual mineral resource and mineral reserve update.

Speaker #3: We're also actively evaluating decline contractors and advancing technical work to support an economic study for wedge. We continue to anticipate commencing the decline towards wedge from existing operations by year-end, using internal resources.

David Rae: We continue to anticipate commencing the decline towards Wedge from existing operations by year-end, using internal resources. In June, we announced a major new discovery of a high-grade copper gold porphyry mineralization at the Brestovac South porphyry target. This is our fourth significant discovery since 2023, continuing our remarkable exploration track record. Initial results from drilling, including 713 meters of 2.5 grams per ton gold equivalent, demonstrate the potential for scale and continuity with broad continuous intervals of high-grade copper gold porphyry mineralization. That particular hole, which was in progress as we reported, continued for over 1 kilometer and was terminated in mineralization. A large phyllic alteration envelope exceeding 1,000 meters by 1,500 meters indicates a substantial hydrothermal system with the BSP target remaining open in multiple directions and at depth.

Speaker #3: In June, we announced a major new discovery of a high-grade copper gold porphyry mineralization at the Brevenny South Porphyry target. This is our fourth significant discovery since 2023, continuing our remarkable exploration track record.

Speaker #3: Initial results from drilling, including 713 meters of 2.5 grams per tonne gold equivalent, demonstrate the potential for scale and continuity with broad, continuous intervals of high-grade copper-gold porphyry mineralization.

Speaker #3: That particular hole, which was in progress as we reported, continued for over 1 kilometer and was terminated in mineralization. A large silic alteration envelope exceeding 1,000 meters by 1,500 meters indicates a substantial hydrothermal system, with a BSB target remaining open in multiple directions and at depth.

Speaker #3: Given the significance of this discovery, drilling continues with five high-capacity rigs dedicated to the target, and up to 15,000 meters planned through to the end of the third quarter.

David Rae: Given the significance of this discovery, drilling continues with 5 high-capacity rigs dedicated to the target and up to 15,000 meters planned through to the end of Q3. In parallel, we continue to progress the technical work required to support the conversion of the Brevene exploration license to a mining concession under the well-defined Bulgarian permitting process. On completion of the current phase of exploration work, which ends in September 2026, DPM plans to submit a final report in support of a Commercial Discovery Certificate. At this point, while the process to convert Brevene to a commercial discovery is underway, we will not be able to conduct drilling activities on the Brevene license. However, BSP remains open towards the southeast flank of the Chelopech mine concession, and we intend to immediately move to testing the target from within the mine concession.

Speaker #3: In parallel, we continue to progress the technical work required to support the conversion of the Brevenny exploration license to a mining concession, under the well-defined Bulgarian permitting process.

Speaker #3: On completion of the current phase of exploration work, which ends in September 2026, DPM plans to submit a final report in support of a commercial discovery certificate.

Speaker #3: At this point, and while the process to convert Brevenny to a commercial discovery is underway, we will not be able to conduct drilling activities on the Brevenny license.

Speaker #3: However, BSP remains open towards the southeast flank of the Chalapetch mine concession, and we intend to immediately move to testing the target from within the mine concession.

David Rae: Wedge Zone and BSP are two great examples of how we have transformed our growth outlook, creating an exceptional project pipeline that sets DPM apart from other mid-tier producers. Today, we have several attractive growth opportunities, including Čoka Rakita, where we are advancing permitting this year to support a construction decision. We continue to advance permitting in line with the well-defined Serbian process to support the start of construction in early 2027. The Special Purpose Spatial Plan, which was initiated in November 2025 and is a key permitting milestone, continues to progress well and is expected to be approved and adopted in H2 2026. Excuse me. Following that, we anticipate submission of the Exploitation Field application. Most of the baseline studies required for the environmental and social impact assessment have already been completed, and it is expected to be submitted at year-end.

Speaker #3: Wedge and BSP are two great examples of how we have transformed our growth outlook, creating an exceptional project pipeline that sets DPM apart from other mid-tier producers.

Speaker #3: Today, we have several attractive growth opportunities, including Choka Rakita, where we are advancing permitting this year to support a construction decision. We continue to advance permitting in line with the well-defined Serbian process, to support the start of construction in early 2027.

Speaker #3: The special purpose spatial plant, which was initiated in November 2025 and is a key permitting milestone, continues to progress well and is expected to be approved and adopted in the second half of 2026.

Speaker #3: Excuse me. Following that, we anticipate submission of the exploitation field applications. Most of the baseline studies required for the environmental and social impact assessment have already been completed, and it is expected to be submitted at year-end.

Speaker #3: We are maintaining close and proactive engagement with the relative authorities and stakeholders to support the permitting process, and we remain confident in the overall progress at Choka Rakita.

David Rae: We are maintaining close and proactive engagement with the relative authorities and stakeholders to support the permitting process, and we remain confident in the overall progress at Čoka Rakita. Project execution readiness and operational readiness are planning to continue, leveraging the project's proximity to our Chelopech underground mine and our new Vareš underground mine to support training and development of key personnel and practices for future operating roles. We initiated a 20,000-meter drilling program at the Čoka Rakita license during Q2. A significant component of the drilling program is allocated to infilling and extending mineralization at Dumitru Potok and increasing the drill density. Upon completion of the drilling, we intend to update the mineral resource estimate for the Peki account. An additional drilling program is also underway at the Potaj Čuka license, targeting the same northwest geological trend of Čoka Rakita and Dumitru Potok projects.

Speaker #3: Project execution readiness and operational readiness planning continue, leveraging the project's proximity to our Chelopech underground mine and our new various underground mine to support training and development of key personnel and practices for future operating roles.

Speaker #3: We initiated a 20,000 meter drilling program at the Choka Rakita license during the second quarter, a significant component of the drilling program is allocated to infilling and extending mineralization at Dmitri Potok and increasing the drilled density.

Speaker #3: Upon completion of the drilling, we intend to update the mineral resource estimate for the Rakita account. An additional drilling program is also underway at the Potash Kuka license, targeting the same northwest geological trend of the Choka Rakita and Dmitri Potok projects.

David Rae: With a significant gold-copper inferred mineral resource already defined at Dumitru Potok and the prospect open in several directions, we look forward to advancing the drilling program and continuing to define the potential of this organic growth prospect. As we reported earlier this month, production at Ada Tepe concluded as scheduled on 15 July 2026. As the first new mine in the Balkans in over 40 years, Ada Tepe has been a testament to DPM's ability to permit, build, and operate a world-class asset and implement standards that go above and beyond what is required. I want to express my deepest gratitude to everybody who has been a part of this exceptional story.

Speaker #3: With a significant gold, copper inferred mineral resource already defined at Dmitri Potok and the prospect open in several directions, we look forward to advancing the drilling program and continuing to define the potential of this organic growth prospect.

Speaker #3: As we reported earlier this month, production of Adatepe concluded as scheduled on July the 15th, 2026. As the first new mine in the Balkans in over 40 years, Adatepe has been a testament to DPM's ability to permit, build, and operate a world-class asset, and implement standards that go above and beyond what is required.

Speaker #3: I want to express my deepest gratitude to everybody who has been a part of this exceptional story. I particularly want to acknowledge the community for welcoming us, partnering with us, and working with us to create a world-class example of how mining can be conducted responsibly, with standards that go above and beyond those required.

David Rae: I particularly want to acknowledge the community for welcoming us, partnering with us, and working with us to create a world-class example of how mining can be conducted responsibly with standards that go above and beyond those required and for the benefit of all stakeholders. We now have the opportunity to demonstrate responsible mine closure, with 95% of the mine area expected to be returned back to the Natura 2000, the European Union's Nature Protection Network. I'm proud of what we have accomplished at Ada Tepe, and I'm confident that we are leaving a positive legacy for future generations. Before handing the call over to Navin, I'll summarize our 2026 priorities. Delivering on the ramp up at Vareš, advancing our Cukaru Peki to a construction decision, and daylighting value from our discovery of two Tier 1 potential gold-copper deposits.

Speaker #3: And for the benefit of all stakeholders. We now have the opportunity to demonstrate responsible mine closure with 95% of the mine area expected to be returned back to the nature of 2,000, the European Union's nature protection network.

Speaker #3: I'm proud of what we have accomplished at Ada Tepe, and I'm confident that we are leaving a positive legacy for future generations. Before handing the call over to Navin, I'll summarize our 2026 priorities.

Speaker #3: Delivering on the ramp-up at Varish, advancing our Choka Rakita to a construction decision, and daylighting value from our discovery of two tier-one one potential gold, copper, deposits.

Speaker #3: We will continue to execute on these priorities, and with the same commitment to responsible, efficient mining, financial discipline, and value creation. I'll now turn the call over to Navin for a review of our financial results.

David Rae: We will continue to execute on these priorities and with the same commitment to responsible, efficient mining, financial discipline, and value creation. I'll now turn the call over to Navin for a review of our financial results.

Navin Dyal: Thanks, Dave. I'll be touching briefly on the financial highlights for the quarter and conclude with some commentary on our balance sheet and return of capital program. Overall, DPM delivered record quarterly revenues, earnings, and free cash flow, benefiting from higher metal prices and the addition of Vareš to our portfolio. Looking at our earnings and cash flow, revenue of $362 million for the quarter was 94% higher than prior year, due primarily to higher realized metal prices and the inclusion of Vareš' pre-commercial production revenue of $110 million. Adjusted net earnings in the quarter of $211 million or $0.95 per share, more than doubled compared to the prior year, due primarily to higher realized metal prices and the inclusion of Vareš, partially offset by higher income taxes and cost of sales.

Speaker #2: Thanks, Dave. I'll be touching briefly on the financial highlights for the quarter and will conclude with some commentary on our balance sheet and return of capital program.

Speaker #2: Overall, DPM delivered record quarterly revenues, earnings, and free cash flow, benefiting from higher metal prices and the addition of various assets to our portfolio. Looking at our earnings and cash flow, revenue of $362 million for the quarter was 94% higher than the prior year, due primarily to higher realized metal prices and the inclusion of various pre-commercial production revenue of $110 million.

Speaker #2: Adjusted net earnings in the quarter of 211 million, or 95 cents per share, more than doubled compared to the prior year due primarily to higher realized metal prices and the inclusion of various partially offset by higher income taxes and cost of sales.

Speaker #2: Adjusting items, which were not indicative of the company's operating performance, primarily included a $33 million reversal of certain provisions at various sites and a $10 million loss on settlement of a previously recognized receivable related to the DPM tolling agreement.

Navin Dyal: Adjusting items which were not indicative of the company's operating performance primarily included a $33 million reversal of certain provisions at Vareš, and a $10 million loss on settlement of a previously recognized receivable related to the DPM Tolling Agreement. Cash flow provided from operating activities for the quarter of $271 million reflected an increase of $172 million compared to the prior year, due primarily to higher earnings generated in the period and the timing of deliveries and subsequent receipts of cash, partially offset by higher annual cash redemptions under the share-based compensation plans, reflecting DPM's strong share price performance, the timing of payments to suppliers, and higher income taxes paid. Free cash flow of $227 million for the quarter reflected an increase of $133 million compared to the prior year, due primarily to higher adjusted net earnings generated in the quarter.

Speaker #2: Cash flow provided from operating activities for the quarter of 271 million reflect an increase of 172 million, compared to the prior year, due primarily to higher earnings generated in the period and the timing of deliveries and subsequent receipts of cash, partially offset by higher annual cash redemptions under the share-based compensation plans reflecting DPM's strong share price performance, the timing of payments to suppliers, and higher income taxes paid.

Speaker #2: Free cash flow of 227 million for the quarter reflect an increase of 133 million compared to the prior year, due primarily to higher adjusted net earnings generated in the quarter.

Speaker #2: Taking a look at our cost metrics in the first half of 2026, all-in sustaining costs were $1,470 per gold equivalent ounce sold, referred to herein as GEO, compared to an average realized gold price of $4,635 per ounce, reflecting the high-margin, low-cost nature of our operations.

Navin Dyal: Taking a look at our cost metrics in H1 2026, all-in sustaining costs of $1,470 per gold equivalent ounce sold, referred to herein as GEO, compared to an average realized gold price of $4,635 per ounce, reflecting the high margin, low cost nature of our operations. All-in sustaining cost per GEO sold was comparable to prior year. At Vareš, all-in sustaining cost per GEO sold was below the low end of its 2026 guidance range, due primarily to the capitalization of certain pre-commercial production operating costs. With commercial production anticipated by the end of Q3, all-in sustaining costs per GEO sold is expected to be within the guidance range at Vareš.

Speaker #2: All-in sustaining costs per GO sold were comparable to the prior year. At Chelopech, all-in sustaining costs per GO sold were below the low end of its 2026 guidance range, due primarily to the capitalization of certain pre-commercial production operating costs.

Speaker #2: With commercial production anticipated by the end of the third quarter, all insisting costs per GO sold is expected to be within the guidance range at various.

Navin Dyal: On a consolidated basis, all-in sustaining cost at Vareš is largely offset by higher costs at Chelopech and Ada Tepe, due primarily to higher labor costs, a stronger EUR relative to the US dollar, and higher royalties reflecting higher metal prices, as well as the impact of mark-to-market adjustments to share-based compensation expenses. Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $95 per GEO sold for H1 2026, compared to an increase of $122 per GEO sold in the prior year. We are on track to meet all our all-in sustaining cost guidance for the year, and we're closely monitoring the market dynamics outside of our control which impact costs such as metal prices, foreign exchange rates, and oil prices, and their movements compared to our guidance assumptions.

Speaker #2: On a consolidated basis, all-in sustaining costs at various sites were largely offset by higher costs at Chelopech and Ada Tepe, due primarily to higher labor costs, a stronger euro relative to the US dollar, and higher royalties reflecting higher metal prices, as well as the impact of mark-to-market adjustments to share-based compensation expenses.

Speaker #2: Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $95 per GO sold for the first half of 2026, compared to an increase of $122 per GO sold in the prior year.

Speaker #2: We are on track to meet all our own sustaining cost guidance for the year, and we're closely monitoring the market dynamics outside of our control, which impact costs such as metal prices, foreign exchange rates, and oil prices, and their movements compared to our guidance assumptions.

Navin Dyal: In terms of our capital spending, sustaining capital expenditures of $3 million for the quarter were lower than prior year, due primarily to no capital expenditures at Ada Tepe, as the mine reached the end of its life in July 2026. Growth capital expenditures of $28 million were higher than the prior year, reflecting capital expenditures at Vareš, including the capitalization of certain pre-commercial production operating costs, partially offset by lower capital costs related to the Čoka Rakita project, due primarily to timing of expenditures. We continue to maintain a strong balance sheet and cash position with a consolidated cash balance of $761 million, no debt, and a $400 million undrawn revolving credit facility. With our significant financial returns and robust free cash flow, we are well-positioned to fund our growth opportunities and exploration prospects while continuing to deliver peer-leading returns to shareholders through our enhanced share buyback program.

Speaker #2: In terms of our capital spending, sustaining capital expenditures of $3 million for the quarter were lower than the prior year, due primarily to no capital expenditures at Ada Tepe, as the mine reached the end of its life in July 2026.

Speaker #2: Growth capital expenditures of 28 million were higher than the prior year, reflecting capital expenditures at various including the capitalization of certain pre-commercial production operating costs, partially offset by lower capital costs related to the Choka Rakita project, due primarily to timing of expenditures.

Speaker #2: We continue to maintain a strong balance sheet and cash position, with a consolidated cash balance of $761 million, no debt, and a $400 million undrawn revolving credit facility.

Speaker #2: With our significant financial returns and robust free cash flow, we are well positioned to fund our growth opportunities and exploration prospects while continuing to deliver peer-leading capital returns, peer-leading returns to shareholders through our enhanced share buyback program.

Speaker #2: In the first half of 2026, we repurchased over 2.1 million shares at a total cost of $75 million under the Company's normal course issuer bid, or NCIB, and paid approximately $18 million in dividends.

Navin Dyal: In H1 2026, we repurchased over 2.1 million shares at a total cost of $75 million under the company's normal course issuer bid, or NCIB, and paid approximately $18 million of dividends. From 1 July to 30 July 2026, we repurchased approximately 800,000 shares at a total cost of $27 million, bringing year-to-date repurchases to approximately 3 million shares for an aggregate cost of $102 million. We continue to deploy our capital in a disciplined manner that balances our desire to reinvest in growing and optimizing our business with our commitment to return capital to our shareholders. In closing, we continue to deliver strong performance from our mining operations and continue our track record of generating significant free cash flow. We remain in a strong cash position and are focused on growth. I will now turn the call back to Dave for his concluding remarks.

Speaker #2: From July 1 to July 30, 2026, we repurchased approximately 800,000 shares at a total cost of $27 million, bringing year-to-date repurchases to approximately 3 million shares for an aggregate cost of $102 million.

Speaker #2: We continue to deploy our capital in a disciplined manner that balances our desire to reinvest in growing and optimizing our business with our commitment to return capital to our shareholders.

Speaker #2: In closing, we continue to deliver strong performance from our mining operations, and continue our track record of generating significant free cash flow. We remain in a strong cash position and are focused on growth.

Speaker #2: I will now turn the call back to Dave for his concluding remarks.

David Rae: Navin, this is an exciting time for DPM. DPM today is a premier mining business with industry-leading margins, lower risk development assets due to their scale and quality, and a disciplined capital allocation strategy that has delivered share price outperformance for several years. We remain focused on executing our strategy to deliver above-average returns to our shareholders as a mid-tier precious metals company with a clear path forward to drive value. I'd now like to open the call for any questions.

Speaker #3: Navin, this is an exciting time for DPM. DPM today is a premier mining business with industry-leading margins, lower risk development assets due to their scale and quality, and a disciplined capital allocation strategy.

Speaker #3: That has delivered share price outperformance for several years. We remain focused on executing our strategy to deliver above-average returns to our shareholders as a mid-tier precious metals company, with a clear path forward to drive value.

Speaker #3: I'd now like to open the call for any questions.

Speaker #1: Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. You'll hear an automated message advising your hand is raised.

Operator: Thank you. As a reminder, if you would like to ask a question, please press *11 on your telephone. You'll hear an automated message advising your hand is raised. If you would like to remove yourself, please press *11 again. We also ask that you wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. First question of the day will come from the line of Fahad Tariq of Jefferies. Please go ahead.

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Speaker #1: One moment while we compile the Q&A roster. The first question of the day will come from the line of Fahad Tariq of Jefferies. Please go ahead.

Fahad Tariq: Hi, thanks for taking my questions. On Čoka Rakita, can you talk a bit about just the level of dialogue between yourselves and the government as you think about getting the permit in H2 of this year, and just the comfort level in starting construction in early 2027?

Speaker #4: Hi. Thanks for taking my questions. On Kota Rakita, can you talk a bit about the level of dialogue between yourselves and the government as you think about getting the permit in the second half of this year?

Speaker #4: And just the comfort level in starting construction in early 2027?

Speaker #3: Yeah, thanks, Fahad. So with Choka Rakita, largely our main activities are with people in the administration of the different bureaus. So this would be Ministry of Mines, Ministry of Energy, Construction, Environmental, with the bulk of that being more towards the spatial planning activities at the moment, which are led by a sort of mix of disciplines.

David Rae: Thanks, Fahad. With Čoka Rakita, largely our main activities are with people in the administration of the different bureaus. This would be Ministry of Mines, Ministry of Energy, construction, environmental, with the bulk of that being more towards the spatial planning activities at the moment, which are led by a mix of disciplines. There's regular conversations going on there to understand the expectations on delivery. I would say that that all leads to our ongoing confidence in terms of delivering against expectations in terms of timing. Next things to watch for are the conclusion of spatial planning, the EIA, then leading to the move to an exploitation permit. Just to reiterate, we're confident of being able to get the permission to go ahead with the construction early in the new year.

Speaker #3: So this regular conversation is going on there to understand the expectations on delivery and I would say that that is leading to our ongoing confidence in terms of delivering against expectations in terms of timing.

Speaker #3: So, the next things to watch for are the conclusion of spatial planning, the EIA, and leading to the move to an exploitation permit. And just to reiterate, the confidence in being able to get the permission to go ahead with the construction early in the new year.

Speaker #4: Okay, great. And then just switching gears to maybe the balance sheet the cash balance has grown substantially over the last year, and it's back to pre-Adriatic levels.

Fahad Tariq: Great. Then, just switching gears to maybe the balance sheet. The cash balance has grown substantially over the last year, and is back to pre-Adriatic levels. Can you just talk a bit about just the use of cash? It sounds like Čoka Rakita is easily well-funded. The $200 million in buybacks, there could be an opportunity to go higher. Any high-level commentary on potential use of cash on the balance sheet going forward. Thanks.

Speaker #4: Can you just talk a bit about just the use of cash? I mean, it sounds like Kota Rakita is easily well-funded. The 200 million dollars in buybacks, I mean, there could be an opportunity to go higher.

Speaker #4: Any high-level commentary on potential use of cash on the balance sheet going forward? Thanks.

Navin Dyal: Sure, Fahad. Yes, I'll take that one. As you know, we have got a great track record of being prudent capital allocators. The approach that we take is focusing on our balance sheet strength, capital returns, and reinvestment in the business. As you heard from Dave, we've got tremendous opportunities, we believe, within the business over the coming years. That's definitely taken into consideration. Then when it comes to just the levels of buybacks and even the sustainable dividend that we have, discussions with our board, there's a healthy debate at the board level in terms of capital returns and looking at our capital needs over the coming years and balancing that with healthy returns. Our dividend is set at a very sustainable level, as you know.

Speaker #2: Sure, Fahad. Yeah, so I'll take that one. As you know, we have got a great track record of being prudent capital allocators. The approach that we often that we take is focusing on our balance sheet strength, capital returns, and reinvestment in the business.

Speaker #2: And as you heard from Dave, we’ve got tremendous opportunities, we believe, within the business over the coming years. So that’s definitely taken into consideration.

Speaker #2: And then, when it comes to just the levels of buybacks, and even the sustainable dividend that we have, discussions with our Board are—there's a healthy debate at the Board level in terms of capital returns, and looking at our capital needs over the coming years, and balancing that with a healthy return.

Speaker #2: So our dividend is set at a very sustainable level, as you know, and again, we've had a tremendous success over the years of buying back our shares.

Navin Dyal: Again, we've had tremendous success over the years of buying back our shares and that's perhaps the avenue that we're going to continue to take to really ensure that we ensure a healthy capital return back to our shareholders.

Speaker #2: And that's perhaps the avenue that we're going to continue to take to really ensure that we ensure a healthy capital return back to our shareholders.

Speaker #3: Maybe just adding to that, if you consider our track record of exploration success, we clearly have the ability to direct some of our free cash flow generation into some pretty exciting projects.

David Rae: Maybe just adding to that, if you consider our track record of exploration success, we clearly have the ability to direct some of our free cash flow generation into some pretty exciting projects. You'll continue to see an increase, even if it's a relatively small number overall, in terms of exploration. We've gone from $50 to $60 to currently $70 million over the course of the last three years. We've said already that while we halt Brevene exploration, while we wait for the commercial discovery, we're going to go aggressively after the porphyry and additional activities around Wedge Zone, keeping in mind that there is a potential for additional opportunities around Wedge Zone, given that we have very little drilling below Cerna Peć. You're right about the ability to buy back more in terms of the NCIB.

Speaker #3: So you'll continue to see an increase, even if it's a relatively small number overall, in terms of exploration. So we've gone from 50 to 60 to currently 70 million over the course of the last three years.

Speaker #3: We've said already that, while we hope to prevent exploration, while we wait for the commercial discovery, we're going to go aggressively after the porphyry and additional activities around the wedge zone.

Speaker #3: Keeping in mind that there is a potential for additional opportunities around wedge zone, given that we have very little drilling below Chellopatch. So you're right about the ability to buy back more in terms of the NCIB at this point.

David Rae: At this point, we've talked about $200 million, as you indicated, there is a possibility of us increasing that.

Speaker #3: We've talked about 200 million, but as you sort of indicated, there is a possibility of us increasing that.

Fahad Tariq: Great. Thank you so much.

Speaker #4: Great. Thank you so much.

Operator: Thank you. One moment for the next question. Our next question is coming from the line of Eric Winmill of Scotiabank. Please go ahead.

Speaker #1: Thank you. One moment for the next question. Our next question is coming from the line of Eric O'Neill of Scotiabank. Please go ahead.

Eric Winmill: Great. Thank you. Good morning, David and team. Congrats on a great quarter. Thanks for taking my question. Just wondering about Wedge Zone Deep. Obviously, great to hear that you want to start the decline efforts there, possibly before end of this year. Just sort of curious, I know it's still early days there, but wondering if you have any estimates in terms of CapEx or timing or how much drilling is required ultimately after you get the resource out in terms of being able to convert that into mineable areas. Thank you.

Speaker #5: Great, thank you. Good morning, David and team. Congrats on a great quarter. Thanks for taking my question. Just wondering about Wedge Zone Deep—obviously, great to hear that you want to start the decline efforts there, possibly before the end of this year.

Speaker #5: Just sort of curious, I know it's still early days there, but wondering if you have any estimates in terms of capex or timing or how much drilling is required ultimately after you get the resource out in terms of being able to convert that into minable areas?

Speaker #5: Thank you.

David Rae: Yeah, good question. We obviously have intent to go after this with the idea being that this could influence what's going to happen in 2028. The sooner we do that, the better. Certainly intend to commence the development before the end of the year. There is work that needs to be done ahead of the transition through to the group, the company, let's say, that is going to do that development on our behalf. This is something that we've done and also considered for Čoka Rakita, and if you recall, counted into the increase in the capital cost for Čoka Rakita.

Speaker #3: Yeah, good question. So we obviously have intent to go after this with the idea being that this could influence what's going to happen in 2028.

Speaker #3: So the sooner we do that, the better. Certainly intend to commence the development before the end of the year. There is work that needs to be done ahead of the transition through to the group, the companies, let's say, that is going to do that development on our behalf.

Speaker #3: And this is something that we've done and also considered for Choka Rakita. And if you recall, counted into the increase in the capital cost for Choka Rakita.

David Rae: The reason why we're doing this is we see an increasing requirement for capability that's been demonstrated at Chelopech and in fact at Vareš, but is becoming more in demand as we have success with Wedge Zone and as we prepare for Čoka Rakita. Anyway, let's come back to your question about work that's planned. We do intend to, with our own teams, commence that development. That will be largely intended to set up services and allow the separation of activities between mine operation and the contract work that's going to develop. A little bit of additional context. We have three ways to get at Wedge Zone, and these things we are evaluating. We're in a period of engineering at the moment. Your other questions about capital spend and some other commentary, that's something we'll update as we get closer to the end of the year.

Speaker #3: So the reason why we're doing this is we see an increasing requirement for capability. It's been demonstrated at Chellopatch and, in fact, at Barish, but is becoming more in demand as we have success with wedge zone and as we prepare for Choka Rakita.

Speaker #3: So anyway, let's come back to your question about work that's planned. We do intend to, with our own teams, commence that development. That will be largely intended to set up services and allow the separation of activities between mine operation and the contract work that's going to develop.

Speaker #3: A little bit of additional context. We have three ways to get at Wedge Zone, and these are things we are evaluating. We're in a period of engineering at the moment.

Speaker #3: So your other questions about capital spend and some other commentary, that's something we'll update as we get closer to the end of the year.

Eric Winmill: Okay. Fantastic. Thank you. Then maybe just on Brestovac South porphyry, I know you're going to go through the permitting process there, converting it to Commercial Discovery. I know it's always tough to comment on regulatory timelines, but any thoughts here in terms of how long you're expecting the permitting process there?

Speaker #5: Okay, fantastic. Thank you. And then maybe just on BSP pour free, I know you're going to go through the permitting process there, converting it to commercial discovery.

Speaker #5: I know it's always tough to comment on regulatory timelines, but any thoughts here in terms of how long you're expecting the permitting process there?

Speaker #3: Yeah, it's a great question, and obviously we'll keep you updated. There are two different dynamics to this. One is that, historically, it's taken some time to get these things.

David Rae: Yeah. It's a good question, and obviously we'll keep people updated. There's two different dynamics to this. The one is that historically it's taken some time to get these through. It's well-defined in terms of what has to get done. Can be a little bit more of an issue in terms of how long. The government has actually committed itself to actually look at these timelines and do more to provide confidence and shorten. We're in a dynamic where two things are going on. The one is there's a typical timeline, but at the same time, the government is intent on trying to shorten these things. As you know, there's a very big difference between timelines in, say, Serbia and timelines in Bulgaria.

Speaker #3: It's well defined in terms of what has to get done. It can be a little bit more of an issue in terms of how long the government has actually committed itself to actually look at these timelines and do more to provide confidence and shorten them.

Speaker #3: So, we're in a dynamic where two things are going on. One is that there's a typical timeline, but at the same time, the government is intent on trying to shorten these things.

Speaker #3: And, as you know, there's a very big difference between timelines in, say, Serbia and timelines in Bulgaria. So we'll update on this, but something like 15 to 18 months is not unusual to get to the point where we're going to be drilling again on permitting that.

David Rae: We will update on this, but something like 15 to 18 months is not unusual to get to the point where we're going to be drilling again on Brevene. There'll be a good amount of work, which we haven't commented on too much here, but we've got publicly on our website, the commentary about where else we are drilling, and we want to complete drilling before we actually complete the activity at Brevene. The other thing, Eric, as you know from the visit, and for those who weren't on the visit recently, the information we have published on our website that comes from that visit, we are excited about the prospect that really this translates across that Brevene boundary into Chelopech, actually towards Wedge Zone Deep and slightly below Wedge Zone Deep. We see lots of potential for us to Chelopech and the concession.

Speaker #3: There'll be a good amount of work, which we haven't commented on too much here, but we've got a public commentary on our website about where else we are drilling, and we want to complete drilling before we actually complete the activity at Prevening.

Speaker #3: But the other thing, Eric, as you know from the visit—and for those who weren't on the visit recently—the information we have published on our website that comes from that visit, we are excited about the prospect that really this translates across that preventing boundary into Chelopech, actually towards Wedge Zone Deep and slightly below Wedge Zone Deep.

Speaker #3: So we see lots of potential for this too: Chelopech and the concession. And the reason why that's interesting is we're not waiting for anything in terms of timelines there.

David Rae: The reason why that's interesting is we're not waiting for anything in terms of timeline there. This will get straight into a question of what we need to do in terms of overall permitting within an existing concession. That's much more something within our control. We see the potential actually that those two could split. You could end up with an in Chelopech concession project on the porphyry, which will then grow into what we've already identified and are currently delineating within Brevene. This is really exciting for us in addition to what we've identified and what we continue to develop at Wedge Zone.

Speaker #3: This gets straight into the question of what we need to do in terms of overall permitting within an existing concession, and that's much more something within our control.

Speaker #3: So we see the potential, actually, that those two could split. You could end up with an initial patch concession project on the Porphyry, which will then grow into what we've already identified and are currently delineating within Prevnet.

Speaker #3: So this is really exciting for us in addition to what we've identified and what we continue to develop at wedge zone.

Eric Winmill: Excellent. Thank you very much. Maybe just one more quick one if I can squeeze it in, on the Čoka Rakita camp, clearly, big resource potential there. Resource update, I guess following the drilling. Any thoughts there in terms of how you prioritize that or maybe some of the areas that you see the greatest potential for additional resource growth?

Speaker #5: Excellent. Thank you very much. Just one more quick one, if I can squeeze it in. But on the Choka Rakita camp, so clearly big resource potential there.

Speaker #5: Resource update, I guess, following the drilling. Any thoughts there in terms of how you prioritize that or maybe some of the areas that you see the greatest potential for additional resource growth?

David Rae: You can expect to see additional news coming on this as we close out this particular phase of activity on drilling. I would anticipate a number of news releases looking at what's happening in Serbia, particularly around Dimitrovgrad, because we haven't really updated that since the end of last year. We'll come back to what's happening at Brevene. We'll come back to what's happening elsewhere. In the potash group license, the considerations about what's been happening around Čoka Rakita and so on. We see a pretty active series of interactions on how this exploration is going and what our future plans are. It's really exciting to now have two, what we consider to be tier 1 opportunities within the organization that, one in Bulgaria, one in Serbia. Just another comment on Serbia. We still haven't got any further, really, than 2 kilometers out from Čoka Rakita.

Speaker #3: You can expect to see additional news coming on this as we close out this particular phase of activity on drilling. So I would anticipate a number of news releases looking at what's happening in Serbia, particularly around the Metropolitan, because we haven't really updated that since the end of last year.

Speaker #3: We'll come back to what's happening at Perveni. We'll come back to what's happening elsewhere. So, in the Potashkuk license, the considerations about what's been happening around Choka Rakita and so on.

Speaker #3: So, we see a pretty active series of interactions on how this exploration is going and what our future plans are. But it's really exciting to now have two, what we consider to be, tier-one opportunities within the organization: one in Bulgaria and one in Serbia.

Speaker #3: Just another comment on Serbia. We still haven't gotten any further, really, than two kilometers out from Choka Rakita. So we still have another four to five kilometers north-south, and a few kilometers east to west, that we still have to go to.

David Rae: We still have another 4 to 5 kilometers north, south, and a few kilometers east to west that we still have to go to. We have targets of porphyries that we've identified that could be the sources of future material at depth, Dimitrovgrad and Čoka Rakita alike, and that have actually ultimately resulted in the historical Timok discoveries at surface. We're still looking at that connection, following that trend. For the current, you'll see a number of different things. Serbia will be one, Chelopech will be another in terms of reporting. Whetstone will be a third.

Speaker #3: And we have targets of porphyry frees that we've identified that could be the sources of future material at depth—the Metropolitan and Choka Rakita, like.

Speaker #3: And that is actually ultimately resulted in the historical TMOC discoveries at surface. We're still looking at that connection, but following that trend. So at the current you'll see a number of different things Serbia will be one, Chellopatch will be another in terms of reporting wedge zone will be a third.

Eric Winmill: Fantastic. Thank you very much. I really appreciate it. Congrats again. I'll hop back in the queue.

Speaker #5: Fantastic. Thank you very much. I really appreciate it. Congrats again. I'll hop back to the queue.

Operator: Thank you. One moment for the next question. Our next question is coming from the line of Don DeMarco of National Bank. Please go ahead.

Speaker #1: Thank you. One moment for the next question. Our next question is coming from the line of Don DeMarco. Of National Bank, please go ahead.

Speaker #6: Thank you, operator, and good morning, David and team. Congratulations on a strong quarter. First off, at Varesh, what was the magnitude of the pre-commercial cost capitalization benefit in Q2, in terms of dollars per ounce?

Don DeMarco: Thank you, operator, and good morning, David and team. Congratulations on a strong quarter. First off, at Vareš, what was the magnitude of the pre-commercial cost capitalization benefit in Q2 in terms of dollars per ounce? Was this just a one-off for this quarter? Is it baked into guidance, or is it fair to say you might be tracking the lower end of the cost guidance range as it stands right now?

Speaker #6: And was this just a one-off for this quarter? And is it baked into guidance or is it fair to say you might be tracking the lower end of the cost guidance range as it stands right now?

Navin Dyal: Sure, Don. I'll quote the half-year amount. The total amount capitalized, we capitalized $48 million in total with respect to growth capital at Vareš, of which $37 million of that related to the pre, what I call capitalized operating costs. We actually give two ranges of guidance, effectively for Vareš. One is on a gross basis before that capitalization, and that number, I believe, was around $260 to $275 per ton of ore processed. Then we provided a net number, which essentially equates to about $120 a ton, which is actually the year-to-date number that you see in our tables for Vareš. What I would say is that we provided enough, I think, information for participants to understand exactly what we're doing on the accounting, because the accounting can get a bit complicated.

Speaker #7: Sure, Don. So the I'll quote the half-year amount, it's 30 the total amount capitalized. We capitalized 48 million dollars in total. With respect to growth capital, at Varesh, of which 37 million of that related to the pre what I call capitalized operating costs.

Speaker #7: We actually give two ranges of guidance, effectively, for Varesh. One is on a growth basis before that capitalization, and that number, I believe, was around $260 to $275 per ton of ore processed.

Speaker #7: And then we've provided a net number, which essentially equates to about $120 a ton, which is actually the year-to-date number that you see in our tables for Varesh.

Speaker #7: So what I would say is that we've provided enough, I think, information for participants to understand exactly what we're doing on the account, because these accounting can get a bit complicated.

Speaker #7: But it should be done by the third quarter. Again, as we achieve commercial production, then everything else will start flowing through to our bonus estating costs, cost per ton, cost P&L.

Navin Dyal: It should be done by Q3, again, as we achieve commercial production, then everything else will start flowing through to our all-in sustaining cost per ton, you know?

Navin Dyal: It should be done by Q3, again, as we achieve commercial production, then everything else will start flowing through to our all-in sustaining cost per ton, you know? That's what you're going to start seeing come Q4.

Navin Dyal: That's what you're going to start seeing come Q4.

Speaker #7: And that's where you're going to start seeing come the fourth quarter.

Don DeMarco: Okay, great. You're looking at commercial production in Q3 for Vareš then? What are the actual triggers for commercial production?

Speaker #6: Okay, great. So you're looking at commercial production in Q3 for Varesh then? And what are the actual triggers for commercial production?

Speaker #7: Yes. So, the triggers for commercial production are a continuous processing rate for 30 days, and we're using a criterion of basically 60% throughput capacity.

Navin Dyal: Yes. The triggers for commercial production is a continuous processing rate for 30 days, and we're using a criteria of basically 60% throughput capacity.

Speaker #6: Okay. And you expect that to come sometime this quarter, then, in Q3?

Don DeMarco: Okay. You expect that to come sometime this quarter then, in Q3?

Navin Dyal: Correct.

Speaker #7: Correct.

Speaker #6: Okay. Great. And then Chelopech was also below the low end of the AISC guidance range. I mean, good problem to have, right? But should we take this to imply that you expect a reversion to higher costs in the back half of the year?

Don DeMarco: Okay. Great. Chelopech was also below the low end of the AISC guidance range. A good problem to have, right? Should we take this to imply that you expect a reversion to higher costs in the back half of the year?

Speaker #5: Yeah, I would say that

Navin Dyal: Yeah. I would say that Chelopech is pretty consistent and, relative to what we provided in terms of guidance, we expect to be within the midpoint of the guidance for Chelopech. I wouldn't infer necessarily that it's materially higher cost in H2. We've kind of alluded to some of the cost pressures that we've seen, namely, FX assumptions that we had relative to the prior year. Labor costs are always a bit sticky. That's always something that we see on a year-over-year basis. Everything else, it's really just normal course. Oil is obviously, as we've outlined before, something that we're closely monitoring, and could impact cost depending on obviously the situation that's happening in the Middle East.

Speaker #7: You know, Chelopech is pretty consistent relative to what we've provided in terms of guidance. We expect to be within the midpoint of the guidance for Chelopech.

Speaker #7: So I wouldn't infer necessarily that it's materially higher cost in the second half of the year. We kind of alluded to some of the cost pressures that we've seen.

Speaker #7: Namely, FX assumptions that we had relative to the prior year, labor costs are always a bit sticky. So that's always something that we see on a year-over-year basis.

Speaker #7: But everything else, it's really just normal course. Oil is, obviously, as we've outlined before, something that we're closely monitoring and could impact cost depending on, obviously, the situation that's happening in the Middle East.

Speaker #6: Okay. Great. Okay, well, thanks again so from me and we'll keep an eye out for those expiration updates. Thank you.

Don DeMarco: Okay, great. Okay, well, thanks again. That's all for me. We'll keep an eye out for those exploration updates. Thank you.

Navin Dyal: Thanks.

Speaker #7: Thanks.

Operator: Thank you. One moment for the next question. Our next question is coming from the line of Jeremy Hoy of Canaccord Genuity Corp. You may go ahead.

Speaker #1: Thank you. One moment for the next question. And our next question is coming from the line of Jeremy Hall. Conicord, you may go ahead.

Jeremy Hoy: Hi, Dave, Nav, and Jennifer. Thanks for taking my question. Just follow up on Eric's question on the Čoka Rakita camp. You've mentioned that there's a resource update coming at the end of the current drilling. What's the sense you're getting? Will you be targeting an initial economic study on these porphyry opportunities shortly after the resource update, or is there still a lot of work to be done on the exploration front to get a handle on the scale, before moving to economic studies?

Speaker #5: Hi, Dave. Now than Jennifer. Thanks for taking my question. Just follow up on Eric's question on the Choka Rakita camp. You've mentioned that there's a resource update coming at the end of the current drilling.

Speaker #5: What's the sense you're getting? Will you be targeting an initial economic study on these porphyry opportunities shortly after the resource update, or is there still a lot of work to be done on the exploration front to get a handle on the scale before moving to economic studies?

David Rae: Well, we recognize that the initial resource estimate is just simply the starting point. Getting to something at a PEA level is definitely a priority for us, in all of the opportunities that we have. In terms of timing of that, we're going to provide more information as we progress. The first thing is there's much to come in terms of dimensions and initial resource estimate on these different assets, potentially more to come from the possibility of other Wedge Zone. It's very dynamic, but we are very focused on what we need to do in terms of drilling the drill density, given the nature of the material. What does that translate to in terms of timing and making sure that we're able to prioritize that work. That's a bit sort of around what you were asking, but hopefully that gives you what you need.

Speaker #3: Yeah, well, I mean, we recognize that the initial resource estimate is just simply the starting point. Getting to something at a PEA level is definitely a priority for us in all of the opportunities that we have.

Speaker #3: So, in terms of timing for that, we're going to provide more information as we progress. The first thing is, there's much to come in terms of dimensions and an initial resource estimate on these different assets.

Speaker #3: There’s potentially more to come from the possibility of other wedge zones, so it's very dynamic. But we are very focused on what we need to do in terms of drilling—drill density—given the nature of the material.

Speaker #3: And what does that translate to in terms of timing and making sure that we're able to prioritize that work. That's a bit sort of around what you were asking, but hopefully that gives you what you need.

Speaker #5: Yeah, no, I appreciate that there are several opportunities ongoing and that there's a lot of work in prioritization to be done. Well, looking forward to updates there.

Jeremy Hoy: No, appreciate the several opportunities ongoing and that there's a lot of work and prioritization to be done. Well, looking forward to updates there. My other question is on Vareš. Wondering if you can give us an indication on what you're seeing for grades so far this quarter and what we might be able to expect into Q4. So far in the year with the stronger precious metal grades and throughput expected to strengthen through the back half, it looks like you're tracking pretty comfortably towards upper end of guidance, potentially above there. Any indication of what we're seeing for grades would be helpful.

Speaker #5: My other question is on Varesh. Wondering if you can give us an indication on what you're seeing for grades so far this quarter and what we might be able to expect into Q4.

Speaker #5: So far, in the year, with the stronger pressures, metal grades, and throughput expected to strengthen through the back half, it looks like you're tracking pretty comfortably towards the upper end of guidance—potentially above there.

Speaker #5: And so, any indication of what we're seeing for grades would be helpful.

David Rae: I was actually at the mill this morning, things are going very well. In terms of grade, we're a little cautious. While it is that we're still establishing the updated life of mine plan, a little more cautious than we might be, let's say, typically, but this integration has gone extremely well. Really happy with what's happening. We've now got, we're closing two access, not only to the bottom of zone one, where we started, and 90% of production's coming from there, the bottom of zone two, access to the sort of top-end area towards the northwest, in terms of zone three and zone four, which is also at the bottom of that asset. Our development's just been exceptionally strong.

Speaker #3: Yeah, so that's the middle of this morning. So things are going very well. In terms of grade, we're a little cautious while it is that we're still establishing the updates at life of mining plan.

Speaker #3: A little more cautious than we might be, let's say, typically. But really, this integration has gone extremely well—really happy with what's happening. We've now got, so we're close to access.

Speaker #3: Not only to the bottom of zone one, where we started and 90% of production is coming from, but also to the bottom of zone two, access to the sort of top end area towards the northwest in terms of zone three and zone four, which is also at the bottom of that asset.

Speaker #3: So our development's just been exceptionally strong. So, opening that up gives us an opportunity to give more confidence in terms of production rate, because you have more working phases on which to operate.

David Rae: Opening that up gives us an opportunity to give more confidence in terms of production rates because you have more working phases on which to operate. Continue with grade control drilling, that will ultimately translate into more confidence on grade. I would say we're happy with the outlook that we have. Clearly, as you've sort of alluded to, we are easily on track so far in H1 to meet guidance in H4, because I'd say we're being a little cautious. At this point, I'm not too sure there's a lot of need to do that. Let's say we're very confident about our ability to achieve numbers by year end.

Speaker #3: Continue with grade control drilling that will ultimately translate into more confidence on grade, but I would say we're happy with the outlook that we have. Clearly, as you've sort of alluded to, we are easily on track so far in H1 to meet guidance in H2.

Speaker #3: I'd say we're being a little cautious, and at this point, I'm not too sure there's a lot of need to do that. But let's say we're very confident about our ability to achieve numbers by year.

Jeremy Hoy: Understood. Okay. Well, thank you, Dave. Appreciate you taking my questions. I'll step back in the queue.

Speaker #5: Understood. Okay. Well, thank you, Dave. I appreciate you taking my questions. I'll send back into the queue.

Operator: Thank you. One moment for the next question. Our next question is coming from the line of Frederic Bolton of BMO Capital Markets. Please go ahead.

Speaker #1: Thank you. One moment for the next question. Our next question is coming from the line of Frederick Bolton. Of BMO Capital Markets, please go ahead.

Frederic Bolton: Question. Morning, Dave and Jennifer. Thank you for taking my call. Just a question on exploration in Bosnia. In your MD&A, you talk about the technical assessment of the Draskovac sediment-hosted mineralization. Can you expand a bit more on that, and tell me what's going on there? Thank you.

Speaker #4: Question.

Speaker #5: Good morning. I'm Jennifer. Thank you for taking my call. So just a question on exploration in Bosnia. In your MDNA, you talk about the technical assistant of the Droska batch.

Speaker #5: Is that right? Hosted mineralization. Can you expand a bit more on that and tell us what's going on there? Thank you.

David Rae: Sure. It was a little difficult to hear you there, let me give you the context of what it is that we are doing at the moment. We have been looking and prioritizing along the line of opportunities in the 24km that we have between the mine and the mill. We've been doing some work in an area that was not previously identified very close to the mine, and I think that was one of the comments that was in the notes. In terms of other things, we're now busy, and we have been for the whole of the quarter with the new group that we've put together on exploration. That's focused on external and internal resources, and our team has been doing mag work and other geophysics in order to focus our targeting. We're pretty excited about what we see and the opportunity.

Speaker #3: Yes, it's a little difficult to hear you there, but let me give you the context of what it is that we are doing at the moment.

Speaker #3: So we have been looking and prioritizing along the line of opportunities in the 24 kilometers that we have, between the mining and the mill.

Speaker #3: We've been doing some work in an area that was not previously identified, very close to the mine. And I think that was one of the comments that was in the notes.

Speaker #3: In terms of other things, we're now busy and we have been for the whole of the quarter with the new group that we've put together on exploration.

Speaker #3: So that's both external and internal resources. And our team has been doing MAG work and other geophysics in order to focus our targeting. So we're pretty excited about what we see in the opportunity.

David Rae: We do think there's more than has been previously identified. Obviously now that we have the team operating in the fashion that we're looking for based on what we've already got established in Bulgaria and Serbia, we're anticipating more information to come out of this early stage. I do not know if I answered your question. I apologize, it was a little difficult to hear your question.

Speaker #3: We do think there's more than has been previously identified. And obviously now that we have the team operating in the fashion that we're looking for based on what we've already got established in Bulgaria and Serbia, we're anticipating more information to come out.

Speaker #3: It's early at this stage. I don't know if that answered your question on apologies, but it was a little difficult to hear your question.

Frederic Bolton: Yeah, no. That sort of broadly answered my question. Moving towards Ripitsa. What progress have you got in terms of setting up drilling for the Ripitsa Northwest deposit, and particularly in the Kakanj municipality?

Speaker #5: Yeah, no, that's sort of broadly answered my question. And then moving towards Rapidsa, what progress have you got in terms of setting up drilling for the Rapidsa Northwest deposit?

Speaker #5: And particularly in the Kakanj municipality.

David Rae: I see. In order to access Ripitsa Northwest, there are agreements that we need to complete with the Kakanj municipality. We're very happy with the relationship that we have and feel that's come a long way. There are some things that are coming up, which I think are important and very much in the mind of what's happening at Kakanj. I anticipate about halfway through Q4, we'll be able to get into a more serious conversation. By that stage, as I already sort of indicated, but perhaps not so clearly, we'll be in position underground from two different points in order to explore into that area. We are anticipating to be on track with the ability to do some work in that area towards the end of Q4.

Speaker #3: I see. So in order to access Rapidsa Northwest, there are agreements that we need to complete with the Kakanj municipality. So we're very happy with the relationship that we have and feel that's come a long way.

Speaker #3: There are some things that are coming up, which I think are important and very much in the mind of what's happening at Kakanj. I anticipate that about halfway through Q4, I will be able to get into a more serious conversation about that stage that I already sort of indicated, but perhaps not so clearly.

Speaker #3: We'll be in position on the ground from two different points in order to explore into that area. So, we are anticipating being on track, with the ability to do some work in that area towards the end of Q4.

Frederic Bolton: Great. Thank you very much for your answers. Thank you.

Speaker #5: Great. Thank you very much for your answers. Thank you.

Operator: Thank you. There are no more further questions in the queue, I'd like to turn the call back over to Jennifer for closing remarks. Please go ahead.

Speaker #1: Thank you. There are no further questions in the queue. I’d like to turn the call back over to Jennifer for closing remarks.

Speaker #1: Please go ahead.

Jennifer Cameron: Great. Thanks everyone for joining us today, as you heard from Dave, lots of exciting news to come. We look forward to keeping you all updated through the fall on a lot of the activities that we have going on. For everyone in Ontario, I hope you all have a great long weekend and look forward to seeing you all in the fall.

Speaker #2: Great. Thanks, everyone, for joining us today. As you heard from Dave, there’s lots of exciting news to come, and we look forward to keeping you all updated through the fall on many of the activities we have going on.

Speaker #2: And for everyone in Ontario, I hope you all have a great long weekend, and I look forward to seeing you all in the fall.

Operator: This concludes today's programming. Thank you so much for joining. You may now disconnect.

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