Q2 2026 Lundin Gold Inc Earnings Call

August 7, 2026

Speaker #1: Good morning, ladies and gentlemen, and welcome to the Lundin Gold's Q2 2026 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session.

Operator: Good morning, ladies and gentlemen. Welcome to the Lundin Gold's Q2 2026 Earnings Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on 07 August 2026. I would now like to turn the conference over to Jamie Beck, President and CEO. Please go ahead.

Speaker #1: If at any time during this call you require immediate assistance, please press *0 for the operator. This call is being recorded on August 7, 2026.

Operator: If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on 07 August 2026. I would now like to turn the conference over to Jamie Beck, President and CEO. Please go ahead.

Speaker #1: I would now like to turn the conference over to Jamie Beck, President and CEO. Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone. Thank you all for joining us today. I'm joined by Terrence Smith, our Chief Operating Officer, and Chester See, our Chief Financial Officer.

Jamie Beck: Thank you operator, good morning, everyone. Thank you all for joining us today. I am joined by Terry Smith, our Chief Operating Officer, and Chester See, our Chief Financial Officer. We are going to take you through our results for Q2 2026. Please note Lundin Gold's disclaimers on this slide. This discussion includes forward-looking information, and actual future results may differ from expected results for a variety of reasons, as described in the Caution Regarding Forward-Looking Information and Statements section of our press release. Lundin Gold is a USD reporting entity, and all amounts in this presentation refer to USD unless otherwise indicated. Q2 finished strong with Fruta del Norte delivering another quarter of solid operating performance. We expect Q2 to be the lowest production quarter of the year.

Speaker #2: We are going to take you through our results for the second quarter of 2026. Please note lending goals disclaimers on this slide. This discussion includes forward-looking information, and actual future results may differ from expected results for a variety of reasons, as described in the 'Caution Regarding Forward-Looking Information and Statements' section of our press release.

Speaker #2: Lundin Gold is a U.S. dollar reporting entity, and all amounts in this presentation refer to U.S. dollars unless otherwise indicated. The second quarter finished strong, with Fruta del Norte delivering another quarter of solid operating performance.

Speaker #2: We expect Q2 to be the lowest production quarter of the year, and with the first half representing 48% of the midpoint of our guidance, we are well on track for the full year.

Jamie Beck: With H1 representing 48% of the midpoint of our guidance, we are well on track for the full year. Q2 production of approximately 119,000 ounces of gold brings our year-to-date production to approximately 239,000 ounces of gold. We processed just over 500,000 tons in the quarter, and were able to maintain an average of nearly 5,500 tons per day through the mill for the quarter, despite 9 days of planned maintenance. Cash operating costs and AISC for Q2 were aligned with our plans and reflect lower ounces sold. Margins remained strong, with the business generating $125 million in operating cash flow, despite making annual checks and statutory profit-sharing payments of $221 million during the quarter. We finished H1 with a cash balance of $507 million.

Speaker #2: Second quarter production of approximately 119,000 ounces of gold brings our year-to-date production to approximately 239,000 ounces of gold. We processed just over 500,000 tons in the quarter, and we were able to maintain an average of nearly 5,500 tons per day through the mill for the quarter, despite nine days of planned maintenance.

Speaker #2: Cash operating costs and all-in sustaining costs for the second quarter were aligned with our plans and reflect lower ounces sold. Margins remain strong, with the business generating $125 million in operating cash flow.

Speaker #2: Despite making annual checks and statutory profit-sharing payments of 221 million during the quarter. And we finished the first half with a cash balance of 507 million.

Speaker #2: The business generated free cash flow of $96 million in the second quarter, after those annual payments, while also returning $293 million to shareholders through cash dividends.

Jamie Beck: The business generated free cash flow of $96 million in Q2 after those annual payments, while also returning $293 million to shareholders through cash dividends. We declared a Q2 dividend of $1.08 per share, bringing this year's total cash dividend to $2.29 per share and marking another quarter of returning 100% of normalized free cash flow to our shareholders. In addition to the cash dividend, we completed the silver stream for equity transaction with LunR Royalties, which was announced in Q1. The proceeds of the stream sale were distributed to shareholders as a dividend in kind following closing. Beyond operations and cash flow, we continued to advance our growth pipeline, including ongoing work on our mine-to-mill expansion study, evaluating opportunities to increase throughput beyond 5,500 tons per day and incorporate the FDNS deposit into our mine.

Speaker #2: We declared a second quarter dividend of $1.08 per share, bringing this year's total cash dividend to $2.29 per share, and marking another quarter of returning 100% of normalized free cash flow to our shareholders.

Speaker #2: In addition to the cash dividend, we completed the silver stream-for-equity transaction with Luna Royalties, which was announced in the first quarter. The proceeds of the stream sale were distributed to shareholders as a dividend in kind following closing.

Speaker #2: Beyond operations and cash flow, we continue to advance our growth pipeline, including ongoing work on our mine-to-mill expansion study, evaluating opportunities to increase throughput beyond 5,500 tons per day and incorporate the FDNS deposit into our mine.

Speaker #2: We've advanced development outside of FDN, completing 370 meters of development at FDN South and commenced development toward FDN East in July. Additionally, we made meaningful exploration progress across the district, discovering 2 new copper-gold porphyries and expanding the known limits of mineralization at FDNS, FDN East, and at FDN.

Jamie Beck: We have advanced development outside of FDN, completing 370 meters of development at FDN South, and commenced development towards FDN East in July. Additionally, we made meaningful exploration progress across the district, discovering 2 new copper-gold porphyries and expanding the known limits of mineralization at FDNS, FDN East, and at FDN. With that, I would like to turn the call over to Terry to discuss our operations in more detail.

Speaker #2: With that, I'd like to turn the call over to Terry to discuss our operations in more detail.

Speaker #3: Thanks, Jamie. And good morning, everybody. Before we turn to operations and financial results, I want to start where we always start—with our people.

Terry Smith: Thanks, Jamie, good morning, everybody. Before we turn to operation and financial results, I want to start where we always start, with our people. Our highest priority is making sure that every employee and contractor at Fruta del Norte goes home safe at the end of every shift. During the quarter, we recorded zero lost time injuries and two medical treatment incidents. It is great to see an uptick in some leading indicators like near misses reported by the workforce that help us become safer. Our focus continues to be in the field with leadership availability, visibility, hazard identification, and reinforcing the right and responsibility of every worker to stop a job that doesn't feel safe. Turning to operations in Q2, we continued steady performance across the operation. Both the mine and mill tonnages and grades were aligned with Q1.

Speaker #3: Our highest priority is making sure that every employee and contractor at Fruits of Del Norte goes home safe at the end of every shift.

Speaker #3: During the quarter, we recorded 0 lost time injuries and 2 medical treatment incidents. It is great to see an uptick in some leading indicators like near misses, reported by the workforce, that help us become safer.

Speaker #3: Our focus continues to be in the field, with leadership availability, visibility, hazard identification, and reinforcing the right and responsibility of every worker to stop a job that doesn't feel safe.

Speaker #3: Turning to operations, in the second quarter, we continued steady performance across the operation. Both the mine and mill tonnages and grades were aligned with the first quarter.

Speaker #3: We processed just over 500,000 tons at an average head grade of 8.3 grams per ton, with recoveries of just over 89%. Despite 9 days of planned downtime, the plant averaged approximately 5,500 tons per day—our guided average throughput for the year.

Terry Smith: We processed just over 500,000 tons at an average head grade of 8.3 grams per ton, with recoveries of just over 89%. Despite nine days of planned downtime, the plant averaged approximately 5,500 tons per day, our guided average throughput for the year. June finished the quarter strong with higher grades and throughput heading into Q3, positioning us well for a stronger H2, as expected since the beginning of 2026. We are reaffirming full year guidance of 475,000 to 525,000 ounces. Our mine-to-mill study remains on track for completion by year-end. As we've mentioned previously, this study will integrate FDNS into our mine plan and evaluate sustained higher throughput rates in the future. While we are completing our mine-to-mill study, we are making great progress on our underground development efforts at FDNS.

Speaker #3: June finished the quarter strong, with higher grades and throughput heading into Q3, positioning us well for a stronger second half of the year as expected since the beginning of 2026, and we are reaffirming full-year guidance of 475 to 525 thousand ounces.

Speaker #3: Our mine-to-mill study remains on track for completion by year-end. As we've mentioned previously, this study will integrate FDNS into our mine plan and evaluate sustained higher throughput rates in the future.

Speaker #3: While we are completing our mine-to-mill study, we are making great progress on our underground development efforts at FDN. As Jamie mentioned, we completed 370 meters of development during the quarter, from both the south portal and from the 1170 level at FDN.

Terry Smith: As Jamie mentioned, we completed 370 meters of development during the quarter from both the south portal and from the 1170 level at FDN. We also advanced headings into some FDNS veins for geological mapping and sampling, and processed the ore that we generated. These are important milestones to improve our understanding of this new zone and advance FDNS towards future production. Using the same approach that led to our success at FDNS, we are now advancing development towards the FDNE ore body, which started in July.

Speaker #3: We also advanced headings into some FDNS veins for geological mapping, and sampling, and processed the ore that we generated. These are important milestones to improve our understanding of this new zone and advance FDNS toward future production.

Speaker #3: Using the same approach that led to our success at FDNS, we are now advancing development toward the FDN East ore body, which started in July.

Speaker #3: This development will give us better access for drilling in support of conversion and exploration programs at FDN East. Now, I'll turn to Chester to speak to the financials.

Jamie Beck: This development will give us better access for drilling in support of conversion and exploration programs at FDN East. Now I'll turn to Chester to speak to the financials.

Speaker #4: Thanks, Terry, and good morning, everyone. The second quarter delivered strong financial results, reflecting another quarter of solid operational performance. Net revenues were 478 million and income from mining operations totaled 337 million.

Chester See: Thanks, Terry, good morning, everyone. The Q2 delivered strong financial results, reflecting another quarter of solid operational performance. Net revenues were $478 million, income from mining operations totaled $337 million. Cash operating costs averaged $1,016 per ounce, AISC averaged $1,176 per ounce, giving us a robust AISC margin of approximately 73%. Before discussing earnings, I'd like to briefly address the accounting impacts associated with the LunR transaction. During the quarter, we recognized a one-time non-cash fair value loss of approximately $75 million on the LunR shares that were received and subsequently distributed to shareholders as a dividend in kind. It was more than offset by a non-cash fair value gain of approximately $127 million related to the revaluation of the silver stream obligation, resulting in a net positive impact to reported earnings during the quarter.

Speaker #4: Cash operating costs averaged 1,016 per ounce and ASIC averaged 1,176 per ounce, giving us a robust ASIC margin of approximately 73%. Before discussing earnings, I'd like to briefly address the accounting impacts associated with the lunar transaction.

Speaker #4: During the quarter, we recognized a one-time non-cash fair value loss of approximately 75 million on the lunar shares that were received and subsequently distributed to shareholders as a dividend in kind.

Speaker #4: This was then more than offset by a non-cash fair value gain of approximately 127 million related to the revaluation of the silver stream obligation.

Speaker #4: Resulting in a net positive impact to reported earnings during the quarter. Excluding these non-cash fair value impacts, adjusted earnings were 202 million or 84 cents per share, and adjusted EBITDA was 347 million.

Chester See: Excluding these non-cash fair value impacts, adjusted earnings were $202 million, or $0.84 per share, adjusted EBITDA was $347 million. Going forward, investors should expect some quarter-to-quarter volatility in reported earnings as the silver stream obligation is revalued each reporting period. Those revaluations will be driven primarily by changes in silver prices and updates to long-term production and mine plan assumptions. Importantly, these are non-cash accounting adjustments and do not reflect the underlying operating performance of Fruta del Norte, our cash flow generation, or our capital allocation strategy. Free cash flow in Q2 totaled $96 million, or $0.40 per share, even after annual tax and profit-sharing payments totaling $221 million. These annual payments were materially higher than the prior year as a result of the company's strong financial performance in 2025.

Speaker #4: Going forward, investors should expect some quarter-to-quarter volatility in reported earnings, as the silver stream obligation is revalued each reporting period. Those revaluations will be driven primarily by changes in silver prices and updates to long-term production and mine plan assumptions, importantly these are non-cash accounting adjustments and do not reflect the underlying operating performance of Fruits of Del Norte, our cash flow generation, or our capital allocation strategy.

Speaker #4: Free cash flow in Q2 totaled 96 million or 40 cents per share, even after annual tax and profit sharing payments totaling 221 million. These annual payments were materially higher than the prior year as a result of the company's strong financial performance in 2025.

Speaker #4: Cash generated by operating activities was $495 million in the first half of the year, reinforcing the underlying strength of our business. From a balance sheet perspective, we ended the first half of 2026 with $507 million in cash and $445 million in working capital.

Chester See: Cash generated by operating activities was $495 million in the H1 of the year, reinforcing the underlying strength of our business. From a balance sheet perspective, we ended the H1 of 2026 with $507 million in cash and $445 million in working capital. During the H1 of the year, we generated $495 million in operating cash flow, made our annual tax and profit sharing payments of $221 million, returned $571 million to shareholders through cash dividends, demonstrating the strength of our business and our continued commitment to capital returns.

Speaker #4: During the first six months of the year, we generated $495 million in operating cash flow, made our annual tax and profit sharing payments of $221 million, and returned $571 million to shareholders through cash dividends, demonstrating the strength of our business and our continued commitment to capital returns.

Speaker #4: Consistent with our capital allocation framework, the board declared a quarterly dividend of $1.08 per share for the second quarter, consisting of a 30-cent fixed dividend and a 78-cent variable dividend, representing 100% of normalized free cash flow for the quarter, which is consistent with the payout levels we have made over the last several quarters, and above our policy minimum of 50%.

Chester See: Consistent with our capital allocation framework, the board declared a quarterly dividend of $1.08 per share for the Q2, consisting of a $0.30 fixed dividend and a $0.78 variable dividend, representing 100% of normalized free cash flow for the quarter, which is consistent with the payout levels we have made over the last several quarters and above our policy minimum of 50%. The dividend will be paid on September 25 to shareholders on record on September 10, 2026. For additional details, please refer to the August 6 dividend announcement. In addition, we intend to use our cash resources to enhance shareholder returns by commencing purchases under our normal course issuer bid in the near term, reflecting our confidence in the long-term value of the business. With that, I'll turn the call back to James.

Speaker #4: The dividend will be paid on September 25 to shareholders of record on September 10, 2026. For additional details, please refer to the August 6 dividend announcement.

Speaker #4: In addition, we intend to use our cash resources to enhance shareholder returns by commencing purchases under our normal course issuer bid in the near term.

Speaker #4: Reflecting our confidence in the long-term value of the business. With that, I'll turn the call back to James.

Speaker #1: Thanks, Chester. I'll finish with a brief update on exploration and our priorities for the remainder of 2026. Starting with FDNS, conversion drilling is demonstrating the continuity of high-grade zones within the known ore body.

Jamie Beck: Thanks, Chester. I'll finish with a brief update on exploration and our priorities for the remainder of 2026. Starting with FDNS, conversion drilling is demonstrating the continuity of high-grade zones within the known ore body. These intercepts are important as they support potential reserve and resource growth at FDNS. Highlights include 6.9 meters at 199.9 grams per ton gold and 4.5 meters at 196.8 grams per ton. On the exploration side, drilling outside the current mineral resource envelope has again confirmed continuity along the down-dip extension of FDNS, highlighting additional growth potential beyond the defined resource. Exploration highlights this quarter include 11.75 meters at 108.6 grams per ton gold, including 0.4 meters at 2 kilograms gold and 5.8 meters at 67.2 grams per ton.

Speaker #1: These intercepts are important, as they support potential reserve and resource growth at FDNS. Highlights include 6.9 meters at 199.9 grams per ton gold and 4.5 meters at 196.8 grams per ton.

Speaker #1: On the exploration side, drilling outside the current mineral resource envelope has again confirmed continuity along the down-dip extension of FDNS. Highlighting additional growth potential beyond the defined resource.

Speaker #1: Exploration highlights this quarter include 11.75 meters at 108.6 grams per ton gold, including 0.4 meters at 2 kilograms gold. And 5.8 meters at 67.2 grams per ton.

Speaker #1: As development progresses at FDNS, we're getting a good sense of what the ore body looks like, and we are gaining confidence in both the scale and continuity of the deposit.

Jamie Beck: As development progresses at FDNS, we're getting a good sense of what the ore body looks like, and we are gaining confidence in both the scale and continuity of the deposit. Turning to FDN East, exploration drilling in the quarter focused on extending the deposit footprint and testing newly identified vein sets. Drilling confirmed that the deposit remained open to the east beyond the inaugural mineral resource envelope and intersected the best interval ever at FDN East. Highlights included 4 meters at 236.6 grams per ton gold, including a 1-meter section at 933 grams per ton. Additionally, 6.3 meters at 23.2 grams per ton gold. Given that the FDN East footprint now extends approximately 500 meters east-west by 800 meters north-south and remains open in all directions, we've chosen to begin development into the ore body to accelerate our conversion and exploration drilling programs, which Terry mentioned started in July.

Speaker #1: Turning to FDN East, exploration drilling in the quarter focused on extending the deposit footprint and testing newly identified vein sets. Drilling confirmed that the deposit remained open to the east beyond the inaugural mineral resource envelope and intersected the best interval ever at FDN East.

Speaker #1: Highlights included 4 meters at 236.6 grams per ton gold, including a 1 meter section at 933 grams per ton. Additionally, 6.3 meters at 23.2 grams per ton gold.

Speaker #1: Given that the FDN East footprint now extends approximately 500 meters east-west, by 800 meters north-south, and remains open in all directions, we've chosen to begin development into the ore body to accelerate our conversion and exploration drilling programs which Terry mentioned started in July.

Speaker #1: At FDN, near-mine exploration drilling continued to target areas close to existing underground infrastructure, with a clear potential for near-term mine plan flexibility. Drilling continues to intersect the upper extension of the FDN mineralized envelope, and supports potential expansion above the current mining horizon.

Jamie Beck: At FDN, near mine exploration drilling continued to target areas close to existing underground infrastructure with a clear potential for near-term mine plan flexibility. Drilling continues to intersect the upper extension of the FDN mineralized envelope and supports potential expansion above the current mining horizon. Importantly, mineralization continues to be encountered along the Suarez conglomerate contact, confirming continuity above that existing mineral mining envelope. Key intercepts this quarter included 20.9 meters at 9.3 grams per ton and 8.1 meters at 15.1 grams per ton. These results reinforce the opportunity for incremental near mine additions that could be integrated efficiently into future mine plans. Finally, our porphyry exploration program delivered the discovery of two new porphyry centers during the quarter, bringing the total to seven across the property.

Speaker #1: Importantly, mineralization continues to be encountered along the Suarez conglomerate contact, confirming continuity above that existing mineral mining envelope. Key intercepts this quarter included 20.9 meters at 9.3 grams per ton, and 8.1 meters at 15.1 grams per ton.

Speaker #1: These results reinforce the opportunity for incremental near-mine additions that could be integrated efficiently into future mine plans. Finally, our porphyry exploration program delivered the discovery of 2 new porphyry centers during the quarter, bringing the total to 7 across the property.

Speaker #1: We've also expanded the footprint at Sandia in all directions, with the deposit now measuring approximately 1.6 kilometers in strike, 700 meters in width, and 1 kilometer in vertical extent.

Jamie Beck: We've also expanded the footprint at Sandia in all directions, with the deposit now measuring approximately 1.6 kilometers in strike, 700 meters in width, and 1 kilometer in vertical extent. We've successfully extended the high-grade portion of Sandia to the north, with highlight intercepts including 551 meters at 0.5% copper equivalent and 909 meters at 0.46% copper equivalent. The development of a maiden mineral resource at Sandia is currently underway, and we plan to release the results of that work in early 2027. I'll close with a brief review of our 2026 objectives. We continue to focus on health, safety, and environmental performance. Operationally, we remain on track to achieve our 2026 production and cost guidance with higher production plans for the H2 of the year.

Speaker #1: We've successfully extended the high-grade portion of Sandia to the north, with highlight intercepts including 551 meters at 0.5% copper equivalent and 909 meters at 0.46% copper equivalent.

Speaker #1: The development of a maiden mineral resource at Sandia is currently underway, and we plan to release the results of that work in early 2027.

Speaker #1: I'll close with a brief review of our 26 objectives. We continue to focus on health, safety, and environmental performance. Operationally, we remain on track to achieve our 2026 production and cost guidance, with higher production planned for the second half of the year.

Speaker #1: We are nearly halfway through a record 133,000 meters of planned drilling in 2026, with approximately 54,000 meters completed to date, and our regional program set to ramp up in the second half.

Jamie Beck: We are nearly halfway through a record 133,000 meters of planned drilling in 2026, with approximately 54,000 meters completed to date and our regional program set to ramp up in H2. The mine-to-mill expansion study advances with an integrated investment decision targeted for late 2026, and FDN's underground development is well underway. Finally, we remain committed to returning capital to shareholders, as demonstrated and announced by the additional quarterly dividends of 100% of free cash flow. Overall, we enter H2 in a strong position, and our operations growth and exploration programs, in addition to capital returns, all remain firmly on track. Operator, with that, I'll turn it over for any questions.

Speaker #1: The mine to mill expansion study advances with an integrated investment decision targeted for late '26, and FDNS underground development is well underway. Finally, we remain committed to returning capital to shareholders as a demonstrated and announced by the additional quarterly dividend of 100% of free cash flow.

Speaker #1: Overall, we enter the second half in a strong position, and our operations growth and exploration programs in addition to capital returns all remain firmly on track.

Speaker #1: Operator, with that, I'll turn it over for any questions.

Speaker #2: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the 1 on your touchtone phone.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Martin Pradier with Veritas Investments. Please go ahead.

Speaker #2: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number 2.

Speaker #2: If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Martin Pradier, with Veritas Investments.

Speaker #2: Please go ahead.

Speaker #3: Thank you. I wonder, at what throughput has the mill been operating in the last month, and how should we think about the throughput of the mill in the second half?

Martin Pradier: Thank you. I wonder at what throughput has the mill been operating in the last month, and how should we think about the throughput of the mill in H2?

Speaker #1: Sure. Terry, do you want to field that?

Jamie Beck: Sure. Terry, do you want to field that?

Speaker #4: Sure, Jamie. Hi, Martin. Good question. We averaged closer to 6,000 tons a day through June. And that nets out against all of the downtime that we were talking about earlier in the quarter with mill liner changes and the things that drove that.

Terry Smith: Sure, James. Hi, Martin. Good question. We averaged closer to 6,000 tons a day through June. That nets out against all of the downtime that we were talking about earlier in the quarter with mill liner changes and the things that drove that.

Speaker #3: Okay. So it's possible that you'll be able to continue operating at that kind of rate in the second half, and that will allow better production.

Martin Pradier: Okay. It's possible that you'll be able to continue operating at that kind of rate in the H2, and that will allow better production.

Speaker #4: Correct, yeah. We're going to push the mill as much as we can. And that's sort of a continuation of what we've been doing for a while now.

Terry Smith: Correct. Yeah. We're going to push the mill as much as we can. That's sort of a continuation of what we've been doing for a while now. Yeah, I think there's net of maintenance, we can push the mill to the rates that I'm describing.

Speaker #4: And so yeah, I think there's net of maintenance, we can push the mill to the rates that I'm describing.

Speaker #3: Great. And when you're looking at the mill expansion, and if I understand correctly, you will see 2 operations going on simultaneously, like through the north and through the northeast-south, all taking it to the same mill.

Martin Pradier: Great. When you're looking at the mill expansion, if I understand correctly, you will see two operations going on simultaneously, like Fruta del Norte and Fruta del Norte South, all taking it to the same mill. Will eventually this mean that you will be able to push over the 500,000 ounces, or is this just offsetting lower grade?

Speaker #3: Will eventually this mean that you will be able to push over the 500,000 ounces, or is this just offsetting lower-grade?

Speaker #1: Yeah, Martin, maybe it's Jamie here. Maybe I'll jump back in. I think what's important for us, of course, is that we continue to reconfirm our guidance.

Jamie Beck: Yeah, Martin, it's Jamie here. Maybe I'll jump back in. I think what's important for us, of course, is that we continue to reconfirm our guidance. Despite various movements in mill throughput as we plan for ongoing expansions, we still anticipate being between that 475,000 to 525,000 of ounces this year. As you think towards the future, you're exactly right. We're not necessarily sort of targeting a production profile here. We're taking a look at the equipment sizing and what makes sense. As we start to see grades decline and move closer towards reserve grade later in the mine life, as those mill throughput increases happen, it's not ultimately going to lead to a significant bump in production. We'll continue to hang around that half a million ounce production profile.

Speaker #1: And despite various movements in mill throughput as we plan for ongoing expansions, we still anticipate being between 475,000 to 525,000 ounces this year.

Speaker #1: As you think towards the future, you're exactly right. We're not necessarily targeting a production profile here. We're taking a look at the equipment sizing and what makes sense.

Speaker #1: But as we start to see grades decline and move closer towards reserve grade later in the mine life, then as those mill throughput increases happen, it's not ultimately going to lead to a significant bump in production.

Speaker #1: We'll continue to hang around that half-a-million-ounce production profile.

Martin Pradier: Yeah. The difference is you can do it a lot longer than initial.

Speaker #3: Right. Yeah, the difference is you can do it a lot longer than initial.

Speaker #1: Yes.

Jamie Beck: Yes.

Martin Pradier: In terms of recoveries, you reported 89%. I think you want to get to 90, 91. Are you seeing higher recoveries in the last month or in the last few days or whatever period you can talk about?

Speaker #3: And in terms of recoveries, I mean, you reported 89%. I think you want to get to 90 or 91. Are you seeing higher recoveries in the last month or in the last few days or whatever period you can talk about?

Speaker #1: Yeah, we're working really hard at it. June, in particular, was a very, very strong month for recovery. We've been working through classifying the ore body into slightly different and more ore types than we have in the past.

Jamie Beck: Yeah, we're working really hard at it. June, in particular, was a very strong month for recovery. We've been working through classifying the ore body into slightly different and more ore types than we have in the past. By blending materials, we're finding improvements in recovery and are hopeful that we're going to be able to continue that. We've also got a few projects that we'll be talking about later in the year that are going to be integrated into the mine-to-mill expansion. Those should help with future recoveries once that project is delivered. It's a clear point of focus for us.

Speaker #1: And by blending materials, we're finding improvements in recovery and are hopeful that we're going to be able to continue that. We've also got a few projects that we'll be talking about later in the year that are going to be integrated into the mine-to-mill expansion.

Speaker #1: So those should help with future recoveries. Once that project is delivered. So it's a clear point of focus for us.

Terry Smith: Just to add to what Jamie's describing and circling back to your first question, Martin, we're still guiding 5,500 tons a day is our average for the rest of the year. I didn't want to steer you in the wrong direction there. The 6,000 tons a day is some upside. As we always do, we work to try to unlock as much value as we can. I just wanted to clarify that a bit.

Speaker #4: And just to add to what Jamie's describing—and circling back to your first question, Martin—we're still guiding 5,500 tons a day as our average for the rest of the year.

Speaker #4: I didn't want to steer you in the wrong direction there. 6,000 tons a day is some upside, and as we always do, we work to try to unlock as much value as we can.

Speaker #4: So I just wanted to clarify that a bit.

Speaker #3: No, no, I understand. But if you're able to get the 6,000, then you could be closer to the upper end of the guidance, or something like that.

Martin Pradier: No, I understand. If you're able to get the 6,000, then you could be closer to the upper end of the guidance or something like that. Just one last question, more strategic. Right now, you're giving back to shareholders most of the cash, either through share buybacks or through dividends. At some point, if you go ahead with a copper mine, this requires huge investments. What is the thinking? Are you still thinking that you will have the copper mine development within Fruta del Norte, or would you consider doing a different company or a different investment vehicle for shareholders that takes care of the copper investment?

Speaker #3: Just one last question, a bit more strategic. Right now, you're giving back to shareholders most of the cash, either through share buybacks or through dividends.

Speaker #3: But at some point, if you go ahead with a copper mine, this requires huge investments. So, what is the thinking? Are you still thinking that you will have copper mine development within Fruta del Norte, or would you consider doing a different company that takes care of it, or a different investment vehicle for shareholders that takes care of the copper investment?

Speaker #1: Yeah, thanks for that. At this point in time, the focus is really on understanding the scale of the opportunity of the copper projects and what that's going to entail.

Jamie Beck: Yeah, thanks for that. At this point in time, the focus is really on understanding the scale of the opportunity of the copper projects and what that's going to entail. Our focus at the moment has been on defining the size of the ore body, and we'll look towards putting out that maiden resource in early 2027. I think a bit early to start talking about strategic options, but I'm convinced that through the robustness of the cash flows at Fruta del Norte from the gold profile, that we'll be able to tweak our capital return policy as required over the years to ultimately build up a cash balance, if that's what's going to be needed to help support the ongoing development work that we have planned, whether that's additional epithermal gold-silver work or the copper gold porphyries.

Speaker #1: So our focus at the moment has been on defining the size of the ore body, and we'll look towards putting that maiden resource in early 2027.

Speaker #1: I think a bit early to start talking about sort of strategic options, but I'm convinced that sort of through the robustness of the cash flows at Fruita del Norte, from the gold profile, that we'll be able to tweak our capital return policy as required over the years to ultimately build up a balance, a cash balance, if that's what's going to be needed to help support the ongoing development work that we have planned, whether that's additional epithermal gold-silver work or the copper-gold porphyrys.

Speaker #1: Of course, there's all sorts of creative options in terms of how we might want to finance a big project whether or not we looked towards taking on a bit of leverage there as well.

Jamie Beck: Of course, there's all sorts of creative options in terms of how we might want to finance a big project, whether or not we looked towards taking on a bit of leverage there as well. As you can imagine, the company is completely debt-free, lots of opportunities for us to explore on that side. Too early to say, but we've got time in front of us to tweak our strategy around cash managements and shareholder returns.

Speaker #1: As you can imagine, the company is completely debt-free, so lots of opportunities for us to explore on that side. So too early to say, but we've got time in front of us to tweak our strategy around cash management and shareholder returns.

Speaker #3: Okay.

Martin Pradier: Okay.

Jamie Beck: Is in front of us. Yeah.

Speaker #1: Is in front of us. Yeah.

Speaker #3: Thank you. That's all from me.

Martin Pradier: Thank you. That's all for me.

Speaker #2: As a reminder, if you wish to ask a question, please press star 1. There are no further questions at this time. I will now turn the call over to Jamie Beck for closing remarks.

Operator: As a reminder, if you wish to ask a question, please press star one. There are no further questions at this time. I will now turn the call over to Jamie Beck for closing remarks. Please continue.

Speaker #2: Please continue.

Speaker #1: Thank you, operator. I'll just reiterate, another great quarter at Fruita del Norte. We anticipated this weaker of the year, and expect the back half to be even stronger.

Jamie Beck: Thank you, operator. I'll just reiterate, another great Q at Fruta del Norte. We anticipated this weaker of the year and expect the H2 to be even stronger. The operation continues to surprise to the upside, both in terms of our ability to push some tons through the mill, and we look forward to coming back with that mine-to-mill expansion study later this year, as well as exciting exploration results. The district is growing both in terms of epithermal gold-silver discoveries to the north and south of the known ore bodies and in and around FDN. We're excited about some of the regional work that we're starting to kick off, of course, as well as the much bigger copper gold porphyry ore mineralized deposits that we're seeing in and around FDN. Stay tuned for an exciting H2 of the year.

Speaker #1: The operation continues to surprise to the upside, both in terms of our ability to push some tonnes through the mill, and we look forward to coming back with that mine-to-mill expansion study later this year.

Speaker #1: As well as exciting exploration results. The district is growing both in terms of epithermal gold-silver discoveries to the north and south, of the Nolan ore bodies in and around FDN.

Speaker #1: And we're excited about some of the regional work that we're starting to kick off. Of course, as well as the much bigger copper-gold porphyry ore deposits mineralized deposits that we're seeing in and around FDN.

Speaker #1: So stay tuned for an exciting second half of the year.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

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