Q2 2026 Discovery Silver Corp Earnings Call

August 13, 2026

Operator 2: Good morning. My name is Alexandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Mining second quarter 2026 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star followed by the number 1 again. Thank you. I will now turn the call over to Mark Utting, Senior Vice President of Investor Relations for Discovery. Mr. Utting, you may now begin your conference.

Operator: Good morning. My name is Alexandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Mining Q2 2026 conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star followed by the number one again. Thank you. I will now turn the call over to Mark Utting, Senior Vice President of Investor Relations for Discovery. Mr. Utting, you may now begin your conference.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, press star followed by the number 1 again. Thank you. I will now turn the call over to Mark Udding, Senior Vice President of Investor Relations for Discovery.

Speaker #1: Mr. Udding, you may now begin your conference.

Speaker #2: Thank you, operator. Good morning, everybody. Thank you very much for joining us on Discovery's second quarter 2026 conference call and webcast. As you just heard on Mark Udding, Senior Vice President of Investor Relations.

Mark Utting: Thank you, operator. Good morning, everybody. Thank you very much for joining us on Discovery's Q2 2026 conference call and webcast. As you just heard, I am Mark Utting, Senior Vice President, Investor Relations. Joining me today are many members of Discovery's senior executive team. Speaking today will be Tony Makuch, our President, CEO, and Chairman, Alison White, our Chief Financial Officer, Duncan King, our Senior Vice President, Canadian Operations, Gord Levoy, our Senior Vice President, Mineral Processing, Harold Bird, our Vice President, Mineral Processing, Eric Calio, our Senior Vice President of Exploration, José Jabalera, our Senior Vice President in Mexico. We will then turn it back over to Tony for concluding remarks. Just before we get started, as always, I will remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations and projections about future events.

Speaker #2: Joining me today are many members of Discovery's senior executive team, speaking today will be Tony McCouch, our President, CEO, and Chairman. Alison White, our Chief Financial Officer.

Speaker #2: Duncan King, our Senior Vice President, Canadian Operations. Gord LeBoy, our Senior Vice President, Mineral Processing. Harold Bird, our Vice President, Mineral Processing. Eric Callio, our Senior Vice President of Exploration.

Speaker #2: Jose Jabalera, our Senior Vice President in Mexico. We'll then turn it back over to Tony for concluding remarks. Just before we get started, as always, I'll remind you that during today's call, we will be making forward-looking statements.

Speaker #2: These statements are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.

Mark Utting: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. For more information, please refer to slide 2 on our slide deck as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to other issuers. Slide 3 in the deck deals with cautionary language around non-GAAP measures. Lastly for me, all dollar amounts today will be expressed in USD unless otherwise indicated. With that, I will now turn the call over to Tony Makuch.

Speaker #2: And for more information, please refer to slide 2 in our slide deck, as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to those of other issuers.

Speaker #2: Slide 3 in the deck deals with cautionary language around non-GAAP measures. Lastly, for me, all dollar amounts today will be expressed in US dollars unless otherwise indicated.

Speaker #2: With that, I'll now turn the call over to Tony McCouch.

Speaker #3: Okay, thanks, Mark. And good morning, everyone. It's really good to be able to be here. Actually, you know, I think maybe before we start, we had a really—I think, you know, we had some pretty good results in the quarter. Things went well.

Tony Makuch: Okay, thanks Mark, and good morning everyone. It is really good to be able to be here. Actually, I think maybe before we start, I think we had some pretty good results in the quarter. Things went well or are progressing well. I know that there is a lot of stuff hiding in the background that maybe people all do not see and we do not talk about. A lot of people did a lot of good work. A lot of people that did a lot of good work, some of the results are not really shown in this quarter. You will be seeing them in future quarters. But, what we talk about and all the benefits that we see and all the results you see, we get the chance to talk about it and tell you about it.

Speaker #3: Our progression—well, I know that, you know, there's a lot of stuff hiding in the background that maybe people don't see, and we don't talk about.

Speaker #3: A lot of people did a lot of good work. A lot of people that did a lot of good work, some of the results aren't really shown in this quarter; they'll be seeing them in future quarters.

Speaker #3: But you know, when we talk about all the benefits that we see and all the results we see, it's really—while we get the chance to talk about it and tell you about it—there are a lot of really good people working in the company throughout the operations, and they're the ones who did all the good work.

Tony Makuch: There is a lot of really good people working in the company, throughout the operations, and they are the ones who did all the good work. So, before we start, thank them for the results and we recognize really what everybody is doing. So stay tuned. We are going to talk about good things that happened here, but stay tuned. There is still a lot coming to the end of the story. Anyway, I will start with slide 4. This is a slide that we used a lot in the past to try to show things in terms of where we are in value creation. It talks about our growth to over half a million ounces of gold in production over the next three to five years.

Speaker #3: So, you know, before we start, we thank them for the results and, you know, and we recognize really what everybody's doing. And so, stay tuned.

Speaker #3: We're going to talk about good things that happened here, but stay tuned—there's still a lot. Sorry. Anyway, I'll start with slide 4. This is a slide that we used a lot in the past to try to, you know, show things in terms of where we are in value creation.

Speaker #3: It talks about our growth. So over half a million ounces of gold in production over the next 3 to 5 years. It looks at our potential for Cordero and what we think we can bring with Cordero, you know, 14 million ounces of silver production rate, but, you know, on an equivalent silver equivalent basis, depending on silver prices, there's significant zinc and lead production there.

Tony Makuch: It looks at our, the potential for Cordero and what we think we can bring with Cordero, 14 million ounces silver production rate, but, on an equivalent silver equivalent basis, depending on silver prices. There is significant zinc and lead production there and definitely a world-class silver project in Mexico. We are just waiting for a permit. Looking at our gold business and what we are doing, we now believe that gold has the potential to be significantly greater than what we show here. That is a forward-looking statement as Mark talked about earlier and during this presentation, but we will show you why we are confident that this can be achieved. Going to slide 5. As you know, Q2 was favorable, and we did have a lot of good works and definitely we have done a lot of progress in advancing our growth plans.

Speaker #3: And definitely a, you know, a world-class silver project in Mexico, we're just waiting for a permit. And then looking at our gold business, you know, and what we're doing, we now believe that our growth has the potential to be significantly greater than what we show here.

Speaker #3: And, you know, the forward-looking statement that Mark talked about earlier, and during this presentation, we will show you why we are confident that this can be achieved.

Speaker #3: Going to slide 5, you know, you know, second quarter was favorable, and we did have a lot of good works, and, you know, definitely we've done a lot of progress and advancing our growth plans.

Speaker #3: And, you know, maybe there are three key developments during the quarter that really highlight what we did. First, we completed the acquisition of Kitt operations.

Tony Makuch: Maybe there were three key developments during the quarter that maybe we could highlight. One, we get first, we completed the acquisition of the Kidd operations. Second, we continue to achieve outstanding exploration results. On the exploration results, we originally were putting all in one press release, now we put out three press releases in the last three weeks. Instead of lumping them into one, there is so much good information and all, we realized we probably have to start presenting them each individually. You can see there is excellent drill results at all of our exploration targets, and we expect that to continue. We really think that as much as this is a production and business story and a going concern operation that is financially viable, and as much as this is a growth story, this could be an exploration story as well, on steroids.

Speaker #3: Second, we continue to achieve outstanding expiration results. And, you know, we know and on the expiration results, like, you know, we originally were putting all in one press release, now we put out three press releases in the last three weeks.

Speaker #3: You know, and instead of lumping them into one, there's so much good information and all, we realized we probably have to start presenting them each individually.

Speaker #3: And you can see there's excellent drug results at all of our expiration targets, and we expect that to continue. You know, we really think that this is as much of a as much as this is a production and business story and a going concern operation that financially viable, and as much as this is a growth story, this is really this could be an expiration story as well on steroids.

Speaker #3: And, you know, so we've had a lot of good exploration results, and we did ramp up our investments in the quarter. And we've definitely, you know, been focusing on trying to improve our operations.

Tony Makuch: We have had a lot of good exploration results, and we did ramp up our investments in the quarter. Then we have had definitely, we are focusing on trying to improve our operations. Going to slide 6, this looks at the Kidd acquisition. I think in our last call, we did talk a lot about it. But, in summing it up, the growth we talked about, this is really a big enabler. Besides the exploration, besides the people and what we are doing in the Porcupine camp, besides all the geology, et cetera, that we see here and the infrastructure in place, and the acquisition of the Kidd operations really helps us to achieve the growth that we are targeting over the timeframe that we plan to achieve it. A big part of it is the Kidd metallurgical site and what we can do there.

Speaker #3: But, you know, going to slide 6, this looks at the kid acquisition and, you know, you know, I think we're in our last call, we did talk a lot about it, about it, but, you know, if summing it up, we know the growth we talked about, this is the really big enabler, besides the expiration, besides the, you know, had the people and what we're doing in the part-time camp, but besides all the good geology, et cetera, that we see here, and the infrastructure in place, you know, you know, the acquisition of the kid operations really helps us to achieve the growth that we're targeting over the timeframe that we plan to achieve it.

Speaker #3: You know, and a big part of it is the kid metallurgical site, and what we can do there. And we'll probably be talking more and more in future as the year progresses in terms of the benefits of that.

Tony Makuch: We will probably be talking more and more in future, as the year progresses in terms of the benefits to that. We are not going to get into too much of the details of that, but that was a significant acquisition that really enables us to move forward. Maybe when we talk about it, there is a current processing capacity there, but for us to grow our operation, optimize bio-plant, et cetera, the Pamour, without this infrastructure and the geography, the land position, the power, the water that comes with Kidd operations, maybe I could talk too long on that. Maybe I shouldn't. This is a very important acquisition for Discovery. Slide 7 shows what we know from the last quarterly call and sort of gives a concept that lays out our plans. Construction, new conventional gold circuit incorporated into space that was the A circuit.

Speaker #3: We're not going to get into too much of the details of that, but, you know, that was a significant acquisition that really enables us to move forward.

Speaker #3: And, you know, and, you know, maybe, you know, you know, when we talk about it, there's a current process in capacity there, but for us to grow our operation, optimize oil plantings, and depend more without this infrastructure, and the geography, the land position, the power, the water that comes with kid operations, maybe I can talk too long on that.

Speaker #3: Maybe I shouldn't. And, you know, this was a very important acquisition for Discovery. Slide 7 shows what we know from the last quarterly call and sort of gives a sort of concept that lays out our plan, construction, new conventional gold circuit, incorporating the space that was the A division.

Speaker #3: You can see that some of the conceptual diagrams of where the infrastructure will go, we're currently reviewing what this circuit will look like and our advancing engineering design work.

Tony Makuch: You can see some of the conceptual diagrams of where the infrastructure will go. We are currently reviewing what this circuit will look like and are advancing engineering design work. I can tell you that we have moving parts. The exploration success and our productivity rates that we might design for are, there's still a lot to being added to the story. We've got a lot of blank pages. We might have a lot of headings on, and chapters written in the book, but all the content is being rewritten as we speak in terms of what we're doing there. The B circuit, that's at Kidd. There are four circuits, as we've talked about before. The B circuit will continue to be used as a base metal circuit in the current processing of the Kidd Creek material, at least for 2026 and all of 2027.

Speaker #3: And I can tell you that we have moving parts. The expiration success and sort of our productivity rates that we might design for are there's still a lot to being added to the story.

Speaker #3: So we've got a lot of blank pages we might have a lot of headings on and chapters written in the book, but all the content is being rewritten as we speak.

Speaker #3: In terms of what we're doing there, the B circuit, you know, that's that kid, there is four circuits as we talked about before. The B circuit will continue to be used as a base metal circuit now processing the kid creek material, at least for 2026 and all of 2027.

Speaker #3: For the C circuit, you know, we are doing test work now and we expect that this circuit will be used to process board nor starting sometime next year.

Tony Makuch: For the C circuit, we are doing test work now, and we expect that this circuit will be used to process Borden ore starting sometime next year. We see this could add something up to 40,000 ounces in annual production just in a current form. Where do we get that from? Well, it will add 2,000 tons a day of added availability at Dome. We can see improved metallurgical recoveries at the ores processed at the Dome mill currently. Plus, we think we're going to get that improvement in recoveries from Borden. It also gives us the ability to process higher levels of Borden ore at Kidd. So maybe it gives us the ability to increase productivity from Borden, because we were limited how much Borden ore could be intermingled into the gold circuit at Dome.

Speaker #3: And, you know, we see this, this could add sometime. Something up to 40,000 ounces in annual production, just in our current form, you know, and, you know, and where do we get that from?

Speaker #3: Well, it will add 2,000 tons a day of added availability. Storm, we can see improved metallurgical recoveries at the ORS process at the Dome mill currently, plus we think we're going to get that improvement in recoveries from Gordon, right?

Speaker #3: And it also gives us the ability to process higher levels of board nor at kids. So maybe it gives us the ability to increase productivity from board because we were limited how much board or could be intermingled into the gold circuit at dome.

Speaker #3: And, you know, with the kid met site, we also investigated future plans for the D circuit, our goal would be to have the TDZ and/or other materials processed here and, you know, so we still have a lot, lot, lot to work there, but really an enabler in a lot of ways.

Tony Makuch: With the Kidd met site, we also investigated future plans for the D circuit. Our goal would be to have the TVZ and/or other materials processed here. We still have a lot left to work there, but really an enabler in a lot of ways. Slide 8 looks at the exploration. I mentioned we had three press releases over the last three weeks, all with excellent results. Eric's going to talk about this later, so I'll just focus on a couple of things and maybe highlights. We're excited about Pamour. Based on recent drilling and tied into past drilling, we've established that the mineralized system is we've identified over a strike length of more than 4 kilometers. The system remains open in all directions and at depth.

Speaker #3: Slide 8 looks at the expiration and mentioned we had three press releases over the last three weeks, all with excellent results. Eric's going to talk about this later, so I know I'm not, you know, I'll just focus on a couple of things and maybe highlights.

Speaker #3: You know, we're excited about Pamore. Based on recent drilling, and, you know, tied into past drilling, we've established that the mineralizing system—over, we've identified over a strike length approaching four kilometers—the system remains open in all directions and at depth.

Speaker #3: And, you know, we've talked previously about the depth potential in this region of the camp in terms of depth of oil pond where it's down to 16, 2,000 meters, I should say.

Tony Makuch: We've talked previously about the depth potential in this region of the camp in terms of depth at Hoyle Pond, where it's down to 62,000 meters, I should say. The depth that was at the Hollinger project, which is on strike on the same system. It's not a mine that we have, but it was mined down to 5,000 feet. So there's a significant upside here. We're currently working on a mining redesign for the Pamour pit, and we expect Pamour to become a much larger producer. With that, as I talked about earlier in terms of the processing capacity and what we might build at Kidd A circuit to support a much larger open pit operation here. The other point that I'll make is that Dome is the second large open pit operation we expect to be able to bring online.

Speaker #3: And, you know, and the depth that was at the home or project, which is on strike on the same system, it's not, it's not, it's not, it's not a mind that we have, but it was mined down to 5,000 feet.

Speaker #3: So there's significant upside here. We're currently working on a mine redesign for the Pamore pit and we expect Pamore to become a much larger producer and, you know, with that, you know, as I talked about earlier in terms of the processing capacity, what we might build at kid, at kid A circuit to support a much larger open pit operation here.

Speaker #3: And the other point that I'll make is that, you know, Dome is the second large open pit operation we expect to be able to bring online. It has transformational growth potential, and by, you know, what we do at Kidd with the Kidd A circuit, and being able to move Pamore there, this enables the Dome mill in its current form to be used to process and to start the Dome open pit.

Tony Makuch: It has transformational growth potential. By what we do at Kidd with the Kidd A circuit and being able to move Pamour there, this enables the Dome mill in its current form to be used to process and to start the Dome open pit. This is all future-looking stuff. We do also have longer term, the Hollinger and McIntyre as a potential third large-scale open pit. Maybe we just start with the Pamour and then see how Pamour goes to Dome. But we truly believe that the day may come when Discovery operates three of Canada's largest open pit gold mines, all located in the Timmins camp. Going to slide 9, it looks at our Q2 capital expenditures. As expected, our CapEx went up in Q2, totaling $86 million. That reflects our progress on a number of fronts.

Speaker #3: These are, again, this is all future-looking stuff. We do also have longer-term to Hollander McIntyre as an essential third supply scale open pit, but again, you know, that's maybe we just, we just start with the Pamore and then see how Pamore goes to dome.

Speaker #3: But, you know, we truly believe that they may come, with Discovery operating three of Canada's largest open gold mines, all located in the Timmins camp.

Speaker #3: Going to slide 9, it looks at our Q2 capital expenditures as expected. Our capex went up in Q2, totaling $86 million. That reflects our progress on, you know, a number of fronts.

Speaker #3: You know, at tailings, we're advancing our tailings project at dome to build up our tailings capacity. We continue to do pre-stripping at Pamore. Our goal is to bring Pamore to commercial production.

Tony Makuch: Our tailings, we are advancing our tailings project at Dome to build up our tailings capacity. We continue to do pre-stripping at Pamour. Our goal is to bring Pamour to commercial production, and we are investing in new fleets, equipment, and infrastructure at both Hoyle Pond and Borden. We expect to see further progress and further investments in CapEx over the year. That has been our goal here, to invest back into these operations to not only build production, but also to improve the operating performance. So not just growing production, but improving the performance and reducing costs. Unit costs, maybe I should highlight that better. In terms of slide 10, it highlights our Q2 operating performance. Again, on this, I will leave it for financial results for Alison to review, but I will say that virtually every financial metric improved substantially from last year's second quarter.

Speaker #3: And we're investing in new fleets of equipment and infrastructure for foil pond and boarding. And we, you know, we expect to see further progress and further investments in capex over the years, et cetera.

Speaker #3: And that's been our goal—to invest back into these operations, to build, to not only build production, but also to improve the operating performance. You know, so not just growing production, but improving performance and reducing costs.

Speaker #3: Unit costs, I maybe I should highlight that better. In terms of slide 10, it highlights our Q2 operating performance. Again, on the other side, I'll leave it for financial results for Allison to review, but I'll say that Richard and every financial metric improves substantially from last year's second quarter.

Speaker #3: We achieved record revenue in Q2 2026, adjusted earnings increased significantly compared to both prior periods. And speaking of record results, we achieved record gold production in Q2, production increased over 10% from the previous quarter.

Tony Makuch: We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both prior periods. Speaking of record results, we achieved record gold production in Q2. Production increased over 10% from the previous quarter. Duncan and Gord will get into the details, but the increase was largely due to higher throughput. A key highlight for the quarter was that both mining and milling rates showed strong growth at every operation. Finally, for me in this part before I pass it on to Alison, slide 11 shows our 2026 guidance. Again, we will tell you that we are tracking well to achieve all of our guides for the year. With that, I will turn the call over to Alison, our CFO.

Speaker #3: Duncan and Gord will get into the details, but the increase was largely due to higher throughput and key highlight for the quarter was that both mining and milling rates showed strong growth at every operation.

Speaker #3: Finally, for me, in this part, before I pass it on to Allison, slide 11 shows our 2026 guidance and, you know, again, we'll tell you that we are tracking well to achieve all of our guides for the year.

Speaker #3: And with that, I'll turn the call over to Allison and our CFO.

Speaker #1: Thanks, Tony, and good morning, everyone. Overall, it was another solid quarter reflecting the continued momentum that we built in Q1 and certainly that we've continued to build over the past year of operations.

Alison White: Thanks, Tony, and good morning, everyone. Overall, it was another solid quarter reflecting the continued momentum that we built in Q1 and certainly that we have continued to build over the past year of operations. We had robust revenues during Q2 of $319 million, an increase of 12% quarter-over-quarter, primarily reflecting higher ounces sold and the impact of the Kidd operations from the closing on 1 June, which did contribute $30 million to revenues during Q2. Revenue has increased steadily since the same quarter of the prior year, our fourth consecutive quarter of growth, driven by the operational team efforts to lift production and by higher gold prices over the same period of time.

Speaker #1: We had robust revenues during Q2 of 319 million dollars and increase of 12% quarter over quarter, primarily reflecting higher rounds we sold and the impact of the kid operations from the closing on June 1st.

Speaker #1: Which did contribute 30 million dollars to revenues. During Q2, revenue has increased steadily since the same quarter of the prior year. Our fourth consecutive quarter of growth, driven by the operational team efforts to lift production and by higher gold prices over the same period of time.

Speaker #1: We've moved more tons during the quarter compared to the prior quarter at a lower cost per ton, coupled with a higher number of ounces sold during the period, and partially offset by a planned reduction in grade.

Alison White: We have moved more tons during the quarter compared to the prior quarter at a lower cost per ton, coupled with higher number of ounces sold during the period, partially offset by a planned reduction in grade. As a result, cash costs per ounce were $1,387 per ounce sold. As we have said before, we expect unit costs to be the highest in H1 of the year and improve during H2 of 2026 as production and sales volumes build. All-in sustaining costs averaged $2,154 per ounce sold, reflecting expected higher sustaining capital expenditures, partially offset by the lower cash costs. The ramp-up of sustaining capital reflected capital development and infrastructure improvements at Hoyle Pond and Borden, additional deliveries of new mobile equipment, and construction work at the tailings TMA 6 project.

Speaker #1: As a result, cash cost per ounce was $1,387 per ounce sold. As we've said before, we expect unit costs to be the highest in the first half of the year and to improve during the second half of 2026 as production and sales volumes build.

Speaker #1: All-in sustaining costs averaged $2,154 per ounce sold, reflecting expected higher sustaining capital expenditures, partially offset by the lower cash costs. The ramp-up of sustaining capital reflected capital development and infrastructure improvements at Foil Pond and Boarding, additional deliveries of new mobile equipment, and construction work at the tailings TMA 6 project.

Speaker #1: EBITDA of $170 million was similar to the prior quarter, as the contribution from the Kitt operations offset the decrease in the average realized gold price.

Alison White: EBITDA of $170 million was similar to the prior quarter as the contribution from the Kidd operations offset the decrease in the average realized gold price. That said, similar to my comments on revenue, we have carried strong EBITDA momentum from last year. Free cash outflow of $11 million reflected the ramp-up of our capital expenditures program and the impact of $56 million in working capital changes, reflecting accelerated payments of accounts payable prior to a new system implementation that occurred at the end of the quarter. Funding of the Kidd operations that were offset by the first month's impact where no cash was received for Kidd revenues in June due to the timing of the receipts in the month following for sales according to the new offtake agreements.

Speaker #1: That said, and similar to my comments on revenue, we've carried strong EBITDA momentum from last year. Free cash outflow of 11 million dollars reflected the ramp-up of our capital expenditures program and the impact of 56 million dollars in working capital changes reflecting accelerated payments of accounts payable prior to a new system implementation that occurred at the end of the quarter.

Speaker #1: Funding of the kid operations that were offset by the first month's impact were no cash was received for kid revenues in June due to the timing of the receipts for in the month following for sales, according to the new off-take agreements.

Speaker #1: Discovery deployed $86 million in capital expenditures to further advance the asset base at Porcupine, consistent with our capital allocation plan and toward our vision of reinvesting in the business to build value over the long term.

Alison White: Discovery deployed $86 million in capital expenditures to further advance the asset base at Porcupine, consistent with our capital allocation plan and toward our vision of reinvesting in the business to build value over the long term. Operating and free cash flow reflect a reinvestment in the business through the company's capital expenditure programs and the impact of working capital described earlier. Let's move on to the next slide to review net income and adjusted net income. On an adjusted basis, earnings were $92.3 million, or $0.11 per share, compared to $82.7 million or $0.10 per share in the prior quarter, and $28.4 million or $0.04 per share during Q2 2025.

Speaker #1: Operating and free cash flow reflect the reinvestment in the business through the company's capital expenditure programs and the impact of working capital described earlier.

Speaker #1: Let's move on to the next slide to review net income and adjusted net income. On an adjusted basis, earnings were 92.3 million dollars or 11 cents per share compared to 82.7 million dollars or 10 cents per share in the prior quarter and 28.4 million or 4 cents per share during Q2 2025.

Speaker #1: The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a one-time deferred tax expense resulting from a change in the discount rate methodology from the acquisition date fair value for the kid acquisition subsequent to remeasurement, which had a 2 cent impact.

Alison White: The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a one-time deferred tax expense resulting from a change in the discount rate methodology from the acquisition date fair value for the Kidd acquisition subsequent to remeasurement, which had a $0.02 impact. TSA and other one-time costs had a $0.01 impact. The purchase price allocation adjustments related to the Kidd acquisition for the fair value also had a $0.01 impact. Finally, another $0.01 for payments to First Nations in relation to the closing of the Kidd acquisition and reclamation expenses for non-operating sites. To summarize, adjusted earnings were up quarter-over-quarter and nearly three times from only one year ago when the company initiated operations through the acquisition of Porcupine. Let's turn to the next slide to review our capital priorities.

Speaker #1: TSA and other one-time costs had a $0.01 impact. The purchase price allocation adjustments related to the Cordero acquisition for the fair value also had a $0.01 impact, and finally, another $0.01 for payments to First Nations in relation to the closing of the Cordero acquisition and reclamation expenses for non-operating sites.

Speaker #1: To summarize, adjusted earnings were up quarter over quarter and nearly three times higher than only one year ago, when the company initiated operations through the acquisition of Porcupine.

Speaker #1: Let's turn to the next slide to review our capital priorities. First, we are actively investing to drive future growth. Our capital spend program is robust during the current year, with 195 to 235 million dollars planned for growth capital at Porcupine including an additional 25 to 35 million for capitalized exploration and 120 to 165 million dollars planned for sustaining capital.

Alison White: First, we are actively investing to drive future growth. Our capital spend program is robust during the current year, with $195 to $235 million planned for growth capital at Porcupine, including an additional $25 to $35 million for capitalized exploration and $120 to $165 million planned for sustaining capital. The capital spend program includes replacing equipment, expanding mill capacity, and working to enhance future production levels through exploration and conversion drilling across the business that continues at a rapid pace. Second, we are strengthening our balance sheet. Despite the period of reinvestment that I just spoke about, we had over $600 million in liquidity at the end of the quarter, with $364 million in cash, and since the close of the quarter during July, have upsized the company's revolving credit facility to $400 million, bringing total current liquidity to over $750 million.

Speaker #1: The capital spend program includes replacing equipment, expanding mill capacity, and working to enhance future production levels through exploration and conversion drilling across the business that continues at a rapid pace.

Speaker #1: Second, we are strengthening our balance sheet. Despite the period of reinvestment that I just spoke about, we had over $600 million in liquidity at the end of the quarter.

Speaker #1: With 364 million in cash and since the close of the quarter during July, have upsized the company's revolving credit facility to 400 million dollars, bringing total current liquidity to over 750 million.

Speaker #1: As we look to continue to expand and grow, our financial strength will be fundamental to our success. We've continued to build on the momentum that began last year across all of our key financial metrics, revenue and EBITDA have remained robust each of the last 4 quarters, and equally proved strong earnings generation.

Alison White: As we look to continue to expand and grow, our financial strength will be fundamental to our success. We have continued to build on the momentum that began last year across all of our key financial metrics. Revenue and EBITDA have remained robust each of the last four quarters and equally through strong earnings generation. Let's take a look at our liquidity position on the next slide. Discovery's cash balance totaled $364 million at the end of the quarter. The gold price environment translated into $130 million of operating cash flow, partially offset by the working capital adjustments and continued capital investments that were covered earlier. This leaves us with a strong balance sheet and the financial flexibility to fund our capital programs and advance our strategic priorities that underpin our vision with confidence.

Speaker #1: Let's take a look at our liquidity position on the next slide. Discovery's cash balance totaled 364 million dollars at the end of the quarter.

Speaker #1: The gold price environment translated into 130 million dollars of operating cash flow partially offset by the working capital adjustments and continued capital investments that were covered earlier.

Speaker #1: This leaves us with a strong balance sheet and the financial flexibility to fund our capital programs and advance our strategic priorities that underpin our vision with confidence.

Speaker #1: And I'm now going to pass it over to Duncan Kings, our Senior Vice President of Canadian Operations.

Alison White: I am now going to pass it over to Duncan King, our Senior Vice President of Canadian Operations.

Speaker #2: Well, thank you all. Discuss our production numbers and then ask Gordon Levoy to review our processing performance. During Q2, we achieved record production of 67,300 ounces, 12% higher than in Q1.

Duncan King: Thank you. I will discuss our production numbers and then ask Gordon Levoy to review our processing performance. During Q2, we achieved record production of 67,300 ounces, 12% higher than in Q1. Gold ore and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tons processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of mix of mill feed. We had a higher proportion of feed from the open pit sources and stockpiles. As Tony mentioned, a highlight of the quarter was our mining rate, which increased at every operation. We mined 1.1 million tons during the quarter and ended the quarter with 14 million tons in stockpile. Site level operating cash costs averaged $1,878 per ounce, a 2% improvement from Q1. Site level AISC has increased to $2,028 per ounce.

Speaker #2: Gold forward and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tons processed, which more than offset the impact of an anticipated reduction in the average rate.

Speaker #2: The lower grade was largely a result of mixed mix of mill feed. We had a higher proportion of feed from the open pit sources and stockpiles.

Speaker #2: As Tony mentioned, a highlight of the quarter was our mining rate, which increased at every operation. We mined 1.1 million tons during the quarter and ended the quarter with 14 million tons in stockpile.

Speaker #2: Site level operating cash costs averaged 1,878 dollars per ounce, a 2% improvement from Q1. Site level AISC, as increased to 2,028 per ounce, with the increase entirely due to the pickup in the sustaining capital.

Duncan King: With the increase entirely due to the pickup in the sustaining capital. You may recall we were below plan for sustaining CapEx in Q1, mainly due to the timing for the delivery of our mobile equipment. We made up for a lot of that in Q2. I will now call on Gord Levoy to talk about the milling.

Speaker #2: You may recall we were below plan for sustaining capex in Q1, mainly due to the timing of the delivery of our mobile equipment. We made up for a lot of that in Q2.

Speaker #2: I'll now call on Gordon Levoy to talk about the milling.

Speaker #3: Good morning. We milled 904,000 tons in Q2 2026. That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact, to some extent, early Q2, but overall the mill performed much better for the quarter.

Gord Levoy: Good morning. We milled 904,000 tons in Q2 2026. That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2, but overall, the mill performed much better for the quarter. We exceeded 11,000 tons per day on 49 days in Q2, and we exceeded 12,000 tons a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per ton, 14% better than in Q1, and just slightly higher than our best quarterly average to date of $21.20 per ton in last year's third quarter. I will now turn over the call to Harold Byrd, Vice President of Mineral Processing, to discuss the Kidd operations.

Gord Leavoy: Good morning. We milled 904,000 tons in Q2 2026. That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2, but overall, the mill performed much better for the quarter. We exceeded 11,000 tons per day on 49 days in Q2, and we exceeded 12,000 tons a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per ton, 14% better than in Q1, and just slightly higher than our best quarterly average to date of $21.20 per ton in last year's third quarter. I will now turn over the call to Harold Byrd, Vice President of Mineral Processing, to discuss the Kidd operations.

Speaker #3: We exceeded 11,000 tons per day on 49 days in Q2, and we exceeded 12,000 tons a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were 2,150 per ton, 14% better than in Q1, and just slightly higher than our best quarterly average to date of 2,120 per ton in last year's third quarter.

Speaker #3: I'll now turn over the call to Harold Bird, Vice President of Mineral Processing, to discuss the kid operations.

Speaker #4: Thanks, Gord. Good morning. Overall kid operations had good performance in the first month since its acquisition, excuse me. Contributing a positive revenue of 30 million dollars versus production cost of 19 million dollars.

Harold Bird: Thanks, Gord. Good morning. Overall, Kidd operations had good performance in the first months since its acquisition, excuse me, contributing a positive revenue of $30 million versus production cost of $19 million. Kidd's growth capital primarily related to tailings, buttressing and mill modifications to support the processing of Borden ore, which is targeting to begin in the first half of 2027. Further study work has commenced to expand to the Kidd mill process to process Pamour in future years. Kidd operations continues to be a safe, reliable operating mine that currently has a total recordable injury frequency rate of zero. I would now like to turn the call over to Eric Calio, our Senior Vice President of Exploration.

Speaker #4: Growth capital is primarily related to tailings buttressing and mill modifications to support the processing of board and ore, which is targeting to begin in the first half of 2027.

Speaker #4: Further study work has commenced to expand the KIDD Mill process to process Pamor in future years. KIDD operations continue to be a safe, reliable operating mine, and currently has a total recordable injury frequency rate of zero.

Speaker #4: I'd now like to turn the call over to Eric Callio, our Senior Vice President of Exploration.

Speaker #5: Okay. Thank you, Harold, and good afternoon. Good morning, everyone. I'm not slightly keen, and happy to say there's been another good quarter for exploration.

Eric Calio: Okay, thank you, Harold, and good morning, everyone. I am quite keen and happy to say this has been another good quarter for exploration, with excellent success at operating mines and new growth projects. With this in mind, we must look at, but I will start here with Pamour, where we drilled another 47 holes. We continue to obtain some very exciting new results. Showing the image, the main focus here has been remained on three main targets, including the main pit, Pamour West, and the North Contact Zone. Additionally, we added a new target into the mix, which is called the Keora Trend, and which is located west of the main pit.

Eric Kallio: Okay, thank you, Harold, and good morning, everyone. I am quite keen and happy to say this has been another good quarter for exploration, with excellent success at operating mines and new growth projects. With this in mind, we must look at, but I will start here with Pamour, where we drilled another 47 holes. We continue to obtain some very exciting new results. Showing the image, the main focus here has been remained on three main targets, including the main pit, Pamour West, and the North Contact Zone. Additionally, we added a new target into the mix, which is called the Keora Trend, and which is located west of the main pit.

Speaker #5: It's excellent success at operating mines and new growth projects. With this in mind, let's look at it. I'll start here with Pamor, where we drilled another 47 holes and continued to obtain some very exciting new results.

Speaker #5: Shown in the image, the main focus here has been remained on three main targets. Including the main pits, Pamor West, and the North Contact Zone.

Speaker #5: Additionally, we added a new target into the mix. It's called PR Trend. And which is this located west of the main pit. Results for each of the areas are shown in the current image, indicated extremely positive with some of the best results seeming to come from the main pit, including highlights of 305 over 30 meters and 208 over 2.08 over 24 meters.

Eric Calio: Results for each of the areas are shown in the current image, indicated extremely positive, with some of the best results continuing to come from the main pit, including highlights of 305 over 30 meters and 2.08 over 24 meters. Additionally, we continue to see strong results from the Pamour West and North Contact areas, including several holes with multiple zones at excellent grades and widths. Finally, we have the Keora Trend, where we are very happy to report a high-grade result of 17.36 grams per ton over 5.9 meters in the very first hole drilled 200 meters west of the current resource. Turning to my next slide, number 19, we see the first of two images providing different angles for the areas drilled, with this first one looking to the north and focused on the south side of what is called Pamour Trend.

Eric Kallio: Results for each of the areas are shown in the current image, indicated extremely positive, with some of the best results continuing to come from the main pit, including highlights of 305 over 30 meters and 2.08 over 24 meters. Additionally, we continue to see strong results from the Pamour West and North Contact areas, including several holes with multiple zones at excellent grades and widths. Finally, we have the Keora Trend, where we are very happy to report a high-grade result of 17.36 grams per ton over 5.9 meters in the very first hole drilled 200 meters west of the current resource. Turning to my next slide, number 19, we see the first of two images providing different angles for the areas drilled, with this first one looking to the north and focused on the south side of what is called Pamour Trend.

Speaker #5: Additionally, continued to see strong results from the Pamor West and North Contact areas, including several holes with multiple zones and excellent grades and widths.

Speaker #5: And then finally, we have the PR Trend, where we're very happy to report a high grade result of 17.36 grams per ton over 5.9 meters in the very first hole drilled, 200 meters west of the current resource.

Speaker #5: I'm now turning to my next slide, number 19. You see the first of two images providing different angles for the areas drilled, with this first one looking to the north and focused on the south side of what's called the Pamor Trend.

Speaker #5: Key things to note here are the main pit and Pamor West areas, which are on the central and left sides of the slide, as well as the as well as the overall size of the target area which we're looking at here.

Eric Calio: Key things to note here are the main pit and Pamour West areas, which are on the central and left sides of the slide, as well as the overall size of the targeting area, which we are looking at here, which at this point measures a little over 4 kilometers long and at least 400 meters deep. Also notable is the very shallow depth of drilling to date, both areas and the large areas still remaining to be tested below in between. Turning to the next slide, which is number 20, we see a view looking to the southwest, providing a better view for the north side of the trend. Key things to note here would be the current resource pit, which sits in the background, as well as all the intersections in the North Contact and Kiara areas, which sit back into the north.

Eric Kallio: Key things to note here are the main pit and Pamour West areas, which are on the central and left sides of the slide, as well as the overall size of the targeting area, which we are looking at here, which at this point measures a little over 4 kilometers long and at least 400 meters deep. Also notable is the very shallow depth of drilling to date, both areas and the large areas still remaining to be tested below in between. Turning to the next slide, which is number 20, we see a view looking to the southwest, providing a better view for the north side of the trend. Key things to note here would be the current resource pit, which sits in the background, as well as all the intersections in the North Contact and Kiara areas, which sit back into the north.

Speaker #5: Which at this point measures a little over 4 kilometers long and at least 400 meters deep. Also notable is the very shallow depth of drilling to date, with both areas and the large areas still remaining to be tested below and between.

Speaker #5: Then turning to the next slide, which is number 20, you see a view looking to the southwest providing a better view for the north side of the trend.

Speaker #5: Key things to note here would be the current resource sit, which sits in the background, as well as all in the intersections in the North Contact and QR areas.

Speaker #5: which sit directly to the north. Also provided here is another good angle of the Pamor West area. So, given all of the above, we're very pleased with progress to date at Pamor. Drilling is continuing here with four drills.

Eric Calio: Also provided here is another good angle of the Pamour West area. Given all the above, we are very pleased with progress to date at Pamour. Drilling is continuing here with four hills. Additional work has now begun on a new resource update and on track for this year for what we believe will be very positive results. Going on next slide, number 21, we see the Dome, which was another project which we believe has a lot of potential. As previously described, Dome is a historic mining property, which already has over 17 million ounces mined, and where we have a resource of over 11 million ounces, but also now working to upgrade and expand for an updated estimate this year.

Eric Kallio: Also provided here is another good angle of the Pamour West area. Given all the above, we are very pleased with progress to date at Pamour. Drilling is continuing here with four hills. Additional work has now begun on a new resource update and on track for this year for what we believe will be very positive results. Going on next slide, number 21, we see the Dome, which was another project which we believe has a lot of potential. As previously described, Dome is a historic mining property, which already has over 17 million ounces mined, and where we have a resource of over 11 million ounces, but also now working to upgrade and expand for an updated estimate this year.

Speaker #5: Additionally work has now begun on a new resource update and on track for this year to what we believe will be a very positive result.

Speaker #5: So then going on next, slide number 21, you see the dome. Which we which was another project which we believe has a lot of potential.

Speaker #5: As previously described, dome is a historic mining property. It already has over 17 million ounces mined, where we already and where we have a resource of over 11 million ounces.

Speaker #5: But also now working to upgrade and expand for an updated estimate this year. It indicated on the image, all the new drilling is in the area surrounding the current resource with focus on areas to the southwest, north, and northeast portions of the property, with results continuing to look very encouraging.

Eric Calio: Indicated on the image, all the new drilling is in the area surrounding the current resource, with focus on areas to the southwest, north, and northeast portions of the property, with results continuing to look very encouraging. Drilling in the southwest portion of the property includes nine holes to evaluate mineralization near the south limits and continue to indicate excellent grades and widths at very shallow depths. This means we have had eight more holes in the north part of the property and under north wall of the pit, which were also very successful, with multiple excellent intercepts, including the highlight of 9.09 over 17.3 meters. Finally, we had one new hole to the northeast intersecting a quartz vein near the east limit and containing a very high-grade assay of 278.48 grams over 1.1 meters.

Eric Kallio: Indicated on the image, all the new drilling is in the area surrounding the current resource, with focus on areas to the southwest, north, and northeast portions of the property, with results continuing to look very encouraging. Drilling in the southwest portion of the property includes nine holes to evaluate mineralization near the south limits and continue to indicate excellent grades and widths at very shallow depths. This means we have had eight more holes in the north part of the property and under north wall of the pit, which were also very successful, with multiple excellent intercepts, including the highlight of 9.09 over 17.3 meters. Finally, we had one new hole to the northeast intersecting a quartz vein near the east limit and containing a very high-grade assay of 278.48 grams over 1.1 meters.

Speaker #5: Drilling in the southwest portion of the property includes nine holes to evaluate mineralization near the south limits, and continued to indicate excellent grades and widths at very shallow depths.

Speaker #5: Additionally, we have 8 more holes in the north part of the property and under north wall of the pit, which were also very successful, with multiple excellent intercepts.

Speaker #5: Including the highlight of 9.09 over 17.3 meters. And then finally, we had one new hole to the northeast intersecting the quartz beam near the east limit and containing a very high grade grade assay of 278.48 grams over 1.1 meters.

Speaker #5: And so then turning to my next slide, 22, you see another image related to dome, which provides two different viewing angles across the target area and a little more detail on the new results.

Eric Calio: Turning to my next slide, 22, we see another image related to Dome, which provides two different viewing angles across the targeted area and a little more detail on the new results, with the one on the top covering the south part of the pit, looking northwards and the other covering areas to the north and looking west. Key things to note here would be the red and blue outlines, which represent current pit shell and underground workings, as well as the shallow depth and excellent grades and widths in both areas, which remain open for future testing and expansion. With this, I will conclude by saying that similar to Pamour drilling, here it is looking very good, continuing with two to three drills. Work has also now begun on a new resource update and on track for year-end. Turning on to my next slide, 23.

Eric Kallio: Turning to my next slide, 22, we see another image related to Dome, which provides two different viewing angles across the targeted area and a little more detail on the new results, with the one on the top covering the south part of the pit, looking northwards and the other covering areas to the north and looking west. Key things to note here would be the red and blue outlines, which represent current pit shell and underground workings, as well as the shallow depth and excellent grades and widths in both areas, which remain open for future testing and expansion. With this, I will conclude by saying that similar to Pamour drilling, here it is looking very good, continuing with two to three drills. Work has also now begun on a new resource update and on track for year-end. Turning on to my next slide, 23.

Speaker #5: With the one on the top covering the south part of the pit, looking northwards, and the other covering areas to the north and looking west.

Speaker #5: Key things to note here would be the red and green outlines which represent current pit shells and underground workings, as well as the shallow depth and excellent grades and widths in both areas to remain open for future testing and expansion.

Speaker #5: So with this, I'll conclude by saying that, similar to Pamor drilling, the area is looking very good. We are continuing with two to three drills, and drilling has now begun on a new resource update, which is on track for year-end.

Speaker #5: So then turning on to my next slide, 23, you see the TVZ, where we also have very good progress. As described in the past, TVZ is a significant zone of mineralization in the southeast part of the Paul Pond.

Eric Calio: We see the TVZ, where we also have very good progress. As described in the past, TVZ is a significant zone of mineralization in the southeast part of the Falcon that was partially drilled and defined by past operators, which remain in zone drilling to support a maiden estimate for later this year. Shown on the screen are two different angles of the deposit, with both being long sections and providing different levels of detail. Turning to the one on the left, we see more of an overall view of the size and shape of the zone, as indicated. We are looking at a large northeast trending structure just south of the line between 850 and 1700 levels, and where mineralization is contained mostly in a series of lenses that are highlighted here in a variety of colors.

Eric Kallio: We see the TVZ, where we also have very good progress. As described in the past, TVZ is a significant zone of mineralization in the southeast part of the Falcon that was partially drilled and defined by past operators, which remain in zone drilling to support a maiden estimate for later this year. Shown on the screen are two different angles of the deposit, with both being long sections and providing different levels of detail. Turning to the one on the left, we see more of an overall view of the size and shape of the zone, as indicated. We are looking at a large northeast trending structure just south of the line between 850 and 1700 levels, and where mineralization is contained mostly in a series of lenses that are highlighted here in a variety of colors.

Speaker #5: That was partially drilled and defined by past operators, which were mainly infill drilling to support and made an estimate for later this year. Shown on the screen are two different angles of the deposit, with both being long sections and providing different levels of detail.

Speaker #5: Turning to the one on the left, you see more of an overall view of the size and shape of the zone, as indicated by looking at a large northeast-turning structure just south of the line between the 850 and 1,700 levels.

Speaker #5: And where mineralization is contained mostly in the series of lenses—they are highlighted here in the brighter colors. Also important to note here on this slide is the close proximity of the zone to the current mine workings and location of various drill platforms, including the 1210 and 1680 levels, which we have been using for most of the drilling to date.

Eric Calio: Also important to note here on this slide is the close proximity of the zone to the current mine workings and location of various drill platforms, including 1210 and 1680 levels, which we have been using for most of the drilling to date. Referring now more to the right-hand side, we see details for the new drilling, which as indicated, has been focused mainly on the 1210 and 1680 levels and looking very positive. Just to give you a few examples, what we are seeing, basically looking at values of 5.13 over 18.2, 7 over 16.9, 5.7, 5.17 over 21. Important to note that all these intersections are similar to or better than previously drilled holes in these areas.

Eric Kallio: Also important to note here on this slide is the close proximity of the zone to the current mine workings and location of various drill platforms, including 1210 and 1680 levels, which we have been using for most of the drilling to date. Referring now more to the right-hand side, we see details for the new drilling, which as indicated, has been focused mainly on the 1210 and 1680 levels and looking very positive. Just to give you a few examples, what we are seeing, basically looking at values of 5.13 over 18.2, 7 over 16.9, 5.7, 5.17 over 21. Important to note that all these intersections are similar to or better than previously drilled holes in these areas.

Speaker #5: Referring now more to the right-hand side, we see details for the new drilling which has indicated are all located has been focused nearly on the 1210 and 1680 levels and looking very positive.

Speaker #5: And just to give you a few examples, what we're seeing basically looking at values of 5.13 over 18.27 over 16.9, 5.7, 5.17 over 21.

Speaker #5: Important to note that all of these intersections are similar to or better than previously drilled holes in these areas. Aside from the above, I'd also like to point out this part of the latest program work is also initiated to collect samples from metallurgical testing from holes near the 1210 with a total of 4 samples now collected and shipped out with results expected later this year.

Eric Calio: Finally, from the above, I would also like to point out that as part of the latest program, work has also initiated to collect samples from metallurgical testing from holes near the 1210, with a total of four samples now collected and shipped out, with results expected later this year. In the above, we are very happy with the progress so far. The program is continuing with three drills on 1210 and 1680 levels. Turning now to the next slide, which is 24. We see Owl Creek, where we completed another 10 holes and continue to confirm and expand realization near the Owl Creek pit. Just for context, the Owl Creek pit is located 1.5 kilometers west of Falcon Mine on the south side of the Falcon Belt, which is the same contact that hosts the mine.

Eric Kallio: Finally, from the above, I would also like to point out that as part of the latest program, work has also initiated to collect samples from metallurgical testing from holes near the 1210, with a total of four samples now collected and shipped out, with results expected later this year. In the above, we are very happy with the progress so far. The program is continuing with three drills on 1210 and 1680 levels. Turning now to the next slide, which is 24. We see Owl Creek, where we completed another 10 holes and continue to confirm and expand realization near the Owl Creek pit. Just for context, the Owl Creek pit is located 1.5 kilometers west of Falcon Mine on the south side of the Falcon Belt, which is the same contact that hosts the mine.

Speaker #5: Given the above, we're very happy with the progress so far. The program is continuing with 3 drills on the 1210 and 1680 levels. Turning now to the next slide, which is 24, you see All Creek where we completed another 10 holes and continued to confirm and expand mineralization near the All Creek pit.

Speaker #5: Just for context, the All Creek pit is located 1.5 kilometers west of Paul Pond Mine, on the south side of the Paul Pond belt.

Speaker #5: Which is the same contact that hosts the mine. At the pit, as well as 200-gram racks—which you see here in the image—were deposed and developed by Falcon Ridge Gold in the 1980s.

Eric Calio: That's the pit as well as two underground ramps, which you see here on the image, were both developed by Falconbridge Gold in the 1980s. Shown on screen are two images, with the one on the left being a plan of the drill area and the one on the right being a long section providing more details. Referring to the left, we see the new drilling targeted two main areas on the east and west sides of the pit and continued to obtain very positive results, with some of the key values on the east side being 7 grams, 10.09 over 17, and 6.35 over 9.4. Highlights to the west, 4.72 over 24, and 19.35 over 5.4.

Eric Kallio: That's the pit as well as two underground ramps, which you see here on the image, were both developed by Falconbridge Gold in the 1980s. Shown on screen are two images, with the one on the left being a plan of the drill area and the one on the right being a long section providing more details. Referring to the left, we see the new drilling targeted two main areas on the east and west sides of the pit and continued to obtain very positive results, with some of the key values on the east side being 7 grams, 10.09 over 17, and 6.35 over 9.4. Highlights to the west, 4.72 over 24, and 19.35 over 5.4.

Speaker #5: Shown on the screen are 2 images with the one on the left being a plan of the drill area and the one on the right being a long section providing more details.

Speaker #5: Referring to the left, you see the new drilling targeted 2 main areas, on the east and west sides of the pit, and continued to obtain very positive results.

Speaker #5: With some of the key values on the east side being 7 grams, 7.09 over 17, and 6.35 over 9.4, highlights to the west, 4.72 over 24, and 19.35 over 5.4.

Speaker #5: So, turning now to the right side, we see a view looking northwards across the zone again and, again, another angle on the new results, showing the overall pattern of holes going to depths from west to east.

Eric Calio: Turning now to the right side, we see a view looking northeast across the zone and giving again, another angle on the results. It's showing the overall pattern of holes going to depth from west to east. Important to note here is the holes on the left are the ones drilled directly below the pit, and the ones on the right are what we call into the wide high-grade zone. Also important to note here is what we think is very good continuity between the areas of limited drilling, which exist below the 650-meter level and in areas going to the east. In terms of current activities, drilling's continuing here with two drills on-site focused on further confirmation expansion.

Eric Kallio: Turning now to the right side, we see a view looking northeast across the zone and giving again, another angle on the results. It's showing the overall pattern of holes going to depth from west to east. Important to note here is the holes on the left are the ones drilled directly below the pit, and the ones on the right are what we call into the wide high-grade zone. Also important to note here is what we think is very good continuity between the areas of limited drilling, which exist below the 650-meter level and in areas going to the east. In terms of current activities, drilling's continuing here with two drills on-site focused on further confirmation expansion.

Speaker #5: Important to note here is the holes on the left are the ones drilled directly below the pit, and the ones on the right are what we call into the wide high-grade zone.

Speaker #5: Also important to note here is what we think is very good continuity between the areas and limited drilling, which exists below the 650 meter level and in areas going to the east.

Speaker #5: In terms of current activities, drilling continued here with two drills on site, focused on further confirmation and expansion. Additionally, in light of the good success, work has now been initiated on a new aspiration ramp from Paul Pond Mine, which will allow more detailed drilling both here and in the areas between.

Eric Calio: Additionally, in light of the good success, work has now been initiated on a new exploration ramp from Falcon Mine, which will allow more detailed drilling both here and in the areas between. Although not shown in the image, we expect the ramp will enter the zone from the east side near the 300-meter level and allow quick access to the zone. The expected completion date is in Q3 2027. Turning to slide 25, we see an overall view of the Borden Mine, where we have also been very busy. As described in the past, Borden is located west of Timmins and centered on a major east-west trending shear zone called the Main Zone, which has now been traced and part-mined for a distance of over 2 kilometers.

Eric Kallio: Additionally, in light of the good success, work has now been initiated on a new exploration ramp from Falcon Mine, which will allow more detailed drilling both here and in the areas between. Although not shown in the image, we expect the ramp will enter the zone from the east side near the 300-meter level and allow quick access to the zone. The expected completion date is in Q3 2027. Turning to slide 25, we see an overall view of the Borden Mine, where we have also been very busy. As described in the past, Borden is located west of Timmins and centered on a major east-west trending shear zone called the Main Zone, which has now been traced and part-mined for a distance of over 2 kilometers.

Speaker #5: Although not shown in the image, expected the ramp will enter the zone from the east side near the 300 meter level and allow quick access to the zone that expects a completion date is in Q3, 2027.

Speaker #5: And then, turning to slide 25, we see an overall view of the Gordon Mine, where we have also been very busy. As described in the past, Gordon is located west of Timmins and centered on a major east-west turning shear zone called the Main Zone, which has now been traced and partly mined for a distance of over 2 kilometers.

Eric Calio: In terms of recent exploration, pretty much all work has focused on the far east side and on extending the Main and East Lower Zones from platforms underground near the 585 level, as well as from surface northeast of the mine of the main zone. In terms of results, they've all been very positive, with excellent grades and widths, both within and outside the current reserve shapes in both zones targeted, with some of the key highlights from underground reaching levels such as 9.16 over 29.0 meters. The highlight of the program, I think, a new intersection on surface of 6.34 over 8.7, 500 meters down plunge from the inferred resource. Moving on to slide 26. I have one more image related to this area, which is a 3D looking northwest across the area's drill.

Eric Kallio: In terms of recent exploration, pretty much all work has focused on the far east side and on extending the Main and East Lower Zones from platforms underground near the 585 level, as well as from surface northeast of the mine of the main zone. In terms of results, they've all been very positive, with excellent grades and widths, both within and outside the current reserve shapes in both zones targeted, with some of the key highlights from underground reaching levels such as 9.16 over 29.0 meters. The highlight of the program, I think, a new intersection on surface of 6.34 over 8.7, 500 meters down plunge from the inferred resource. Moving on to slide 26. I have one more image related to this area, which is a 3D looking northwest across the area's drill.

Speaker #5: In terms of recent aspiration, pretty much all work is focused on the far east side and on extending the main and east lower zones from platforms underground near the 585 level, as well as from surface northeast of the mine.

Speaker #5: Of the main zone. In terms of results, we have all been very positive, with excellent grades and widths both within and outside the current resource shapes in both zones targeted, with some of the key highlights from underground reaching levels such as 9.16 over 29.0 meters.

Speaker #5: And the highlight of the program, I think, the new intersection on surface of 6.34 over 8.7, 500 meters down plunge from the inverted resource.

Speaker #5: So then moving on to slide 26, I have one more image related to this area, which is a 3D looking northwards across the area drilled and showing more detail on all the new holes.

Eric Calio: It's showing more detail on all the new holes. A few things to note here might be that all the new holes were drilled from the 585 level, which is the green line at the top of the drawing, and targeting at and beyond the current limit of the inferred resource, which is shown here in light blue. I'd also point out locations of the new surface hole, BO26.

Eric Kallio: It's showing more detail on all the new holes. A few things to note here might be that all the new holes were drilled from the 585 level, which is the green line at the top of the drawing, and targeting at and beyond the current limit of the inferred resource, which is shown here in light blue. I'd also point out locations of the new surface hole, BO26.

Speaker #5: Key things to note here by might be that all the new holes were drilled from the 585 level, which is the green line, at the top of the drawing and targeting at and beyond the current limit of the inverted resource, which is shown here in light blue.

Speaker #5: I'd also point out locations for a new surface hole beyond 2601119, which is on the far left side and located 500 meters from the current resource.

Eric Calio: 01119, which is in the far left side and located 500 meters from the current resource. With this being my last slide, I'd just like to say, in summary, things still continue to go well, and a lot more to come. With that, I'll pass over to José Jabalera, our VP Corporate Affairs and Sustainability, Mexico.

Eric Kallio: 01119, which is in the far left side and located 500 meters from the current resource. With this being my last slide, I'd just like to say, in summary, things still continue to go well, and a lot more to come. With that, I'll pass over to José Jabalera, our VP Corporate Affairs and Sustainability, Mexico.

Speaker #5: So with this being my last slide, I'd just like to say in summary, things still continue to go well and a lot more to come.

Speaker #5: So with that, I'll pass it over to Jose Davalera, our VP, Corporate Affairs and Sustainability.

Speaker #2: Next slide.

Speaker #1: Thanks, Eric. In Cordero, on July 24, we received an official visit from Senior Level Cameronite officials with very good outcome from the project and from the visit.

José Jabalera: Thanks, Eric. In Cordero, on 24 July, we received an official visit from senior level SEMARNAT officials with very good outcome from the project and from the visit. We right now are in the final stage of the environmental permitting process. At the same time, we are continuing with the studies to update capital and cost estimates, as well as more detailed studies regarding water, embargoing power for the project. I will pass to our CEO, Tony Makuch.

Speaker #1: So we right now are in the final stage of the environmental permitting process. At the same time, we are continuing with the studies to update capital and cost estimates, as well as more detailed studies regarding water and power for the project.

Speaker #1: So I will pass to our CEO, Tony Makhuch.

Speaker #3: Thanks, everybody. And. And this on hopefully the not hopefully the last slide. It'll be the last slide, slide 28. And I think you get a sense there's a lot, lot, lot of things going on, whether it's operated from aspiration, development, a lot of exciting projects here.

Tony Makuch: Thanks, everybody. Again, this, hopefully the, well, not hopefully last slide. It will be the last slide 28. I think you get a sense there's a lot of things going on, whether it's operations, exploration, development, a lot of exciting projects here. Really, this is a slide that maybe we put together when we first started with the acquisition of Porcupine with Discovery. We tried to show how gold could actually grow to well over half a million ounces a year. By the way, this doesn't include Cordero in here, which is even over and above that. You can see from our Q2 results that we've achieved in exploration, the acquisition of Kidd, our continued investment in operations.

Speaker #3: This slide and really just a slide that maybe we put together when we first started with the acquisition of Fort Pinewood Discovery. We tried to show how gold production could grow to well over half a million ounces a year.

Speaker #3: And by the way, this doesn't include Cordero in here, which is even open above that, but you can see from our quarter 2 results that the results will achieve an aspiration of the acquisition of KID, our continued investment in operations, we can see how it would demonstrate what's going on here that we're taking the vision from concept to reality in terms of what we can build in Fort Pinewood and build in Discovery as a whole.

Tony Makuch: We are demonstrating what is going on here, that we are taking the vision from concept to reality in terms of what we can build in Porcupine and build in Discovery as a whole. Looking at the slide, Pamour now, as we talked about, now expected to become a much larger mine than the 150,000 ounce a year producer outlined in last year's technical report that we showed 106,000 ounces a year up to 2047, I think, in the report. As I mentioned, we are working on a mine redesign for Pamour and a new large-scale processing plant at Kidd to support this. This then unlocks the Dome Mine, which at current levels of grade, it could produce over 200,000 ounces a year. We will give you a better sense of what that looks like later this year when we update the resource.

Speaker #3: And looking at the slide, Amber is now as we talked about now expected to become a much larger mine than the 150,000 ounce a year producer outlined in last year's technical report that we showed 150,000 ounces a year up to 2047, I think, in the report.

Speaker #3: As I mentioned, we're working on a mine redesign for Pamer and a new large-scale processing plant at KID to support this. This then unlocks the Dome Mill.

Speaker #3: For the dome mine, which at current levels are greater, could produce over 200,000 ounces a year. We'll give you a better sense of what that looks like later this year when we update the resource.

Speaker #3: We also have gross potential at Gordon as outlined by Eric in terms of what he sees, plus the processing as we build processing capacity for Gordon.

Tony Makuch: We also have growth potential at Borden, as outlined by Eric in terms of what he sees, plus the processing as we build processing capacity for both Borden and then looking at the investments we are planning. There is TVZ and Owl Creek at Hoyle Pond. We are planning an initial reported 2011 resource for TVZ later this year, and we will continue working towards a resource at Owl Creek. There is still a lot of work to be done. There is probably some exploration targets I know there is that we have not even talked about here. There is much more to our story lying ahead of us and a lot of exciting things to do. I think one of the things, though, that is also important and that maybe we should acknowledge, and Eric talked about the safety performance at Kidd and that TRIFR of zero.

Speaker #3: And looking at the investments we're planning and then there's TBZ and Al Creek at Oil Pond. We have a planning initial before EQ101 resource for TBZ later this year, and we'll continue working towards a resource at Al Creek.

Speaker #3: There's still a lot of work to be done. There are probably some little aspiration targets—I know there are—that we haven't even talked about here.

Speaker #3: There's much more to our storyline ahead of us and a lot of exciting things to do. I think one of the things, though, that's also important and maybe we should acknowledge and Harold talked about the safe performance at KID and that TMIFR of zero.

Speaker #3: And I know there's been a significant improvement in our TMIFR in all of Fort Pine operations that are on the one and so effectively we're running mines here underground mines and old pit mines and all processing plants in the Timmins camp that's safer to work there than to be working at Walmart or working at Canadian Tire.

Tony Makuch: I know there has been a significant improvement in our TRIFR in all of Porcupine operations. They are down to one. So effectively, we are running mines here, underground mines and open-pit mines and our processing plants in the same camp. That is safer to work there than to be working at Walmart or working at Canadian Tire. So, we are really proud of that, and we want to maintain that as we go forward. Anyway, with that, I want to thank everyone for being on the call, and I would be happy to take any questions.

Speaker #3: So we're really proud of that and we want to maintain that as we go forward. Anyway, with that, I want to thank everyone for being on the call and I'd be happy to take any questions.

Speaker #4: We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand.

Speaker #4: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Operator 2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Larry Lu with CIBC. Your line is now open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Larry Lu with CIBC. Your line is now open. Please go ahead.

Speaker #4: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Larry Liu with CIBC.

Speaker #4: Your line is now open. Please go ahead.

Speaker #5: Hi Tony, Allison, Mark and team. Thanks for taking my question. I guess I'll kick off the first question with free cash flow. So free cash flow turned negative this quarter, but for very good reasons, right?

Speaker #5: For timing of cash flow from KID and other items. I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operational optimization from here?

Larry Lu: Hi, Tony, Alison, Mark, and team. Thanks for taking my question. I guess I will kick off the first question with free cash flow. Free cash flow turned negative this quarter, but for very good reasons, right? For timing of cash flow from Kidd and other items. I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operation optimization from here?

Larry Liu: Hi, Tony, Alison, Mark, and team. Thanks for taking my question. I guess I will kick off the first question with free cash flow. Free cash flow turned negative this quarter, but for very good reasons, right? For timing of cash flow from Kidd and other items. I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operation optimization from here?

Speaker #6: Yeah, Larry. So I'll be happy to take that question. And you talk about the benefits for us in implementing the new system. So you may or you may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont.

Alison White: Yeah, Larry. I will be happy to take that question, and talk about the benefits for us in implementing the new system. You may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont. The company then simultaneously set up its own instance of SAP, and that SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go-forward basis. It is also going to obviously be in our full control since it is a Discovery-implemented instance that has been set up with the full complement of everything that we typically look at and that we typically like to track. We are anticipating that we will see some additional value going forward.

Speaker #6: And so the company then simultaneously set up its own instance of SAP and that SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go forward basis.

Speaker #6: It's also going to obviously be in our full control since it's a discovery implemented instance that has been set up in the full with the full complement of everything that we typically look at and that we typically like to track.

Speaker #6: So we are anticipating that we will see some additional value going forward. We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing.

Speaker #6: And we'll be able to provide some additional clarity on all the growth that's coming in the future.

Speaker #3: Yeah. I mean, in summary there, it's effectively: we've been operating under the code of accounts and the accounting practices that were limited to what our SAP was set up under Newmont.

Alison White: We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing, and we will be able to provide some additional clarity on all the growth that is coming in the future.

Speaker #3: We're going to— we can now implement it more in our own way, as Allison mentioned. And we have a different view on our management accounting and how we can account for things.

Tony Makuch: Yeah. Really, in summary there, effectively we have been operating under the code of accounts and accounting practices that were limited to how SAP was set up under Newmont. We can now implement it more in our way, as Alison mentioned, and we have a different view on our management accounting and how we account for things. We see that as a big value driver in terms of, as I say, we can turn the finance team and accounting team from looking to profit centers for the company.

Speaker #3: So we see that as a big value driver in terms of, maybe let's just say, we can turn to the finance team and accounting team from inter-profit centers for the company.

Speaker #5: Yeah, no, for sure. Good to hear that things are going the Discovery way, doing the best way possible. And I guess, kind of on that note as well, Tony and Allison, can you remind us what's kind of your view for KID Creek, both near-term and longer-term?

Speaker #5: I know this quarter, because of the timing of cash flow, the operation kind of had a little bit of negative free cash flow. But for the rest of the year, should we still expect positive free cash flow?

Larry Lu: Yeah, no, for sure. Good to hear that things are doing the Discovery way, doing the best way possible. I guess, kind of on that note as well, Tony and Alison, can you remind us, what's kind of your view for Kidd Creek, both near term and longer term? I know this quarter, because of timing of cash flow, the operation kind of had a little bit negative free cash flow. But for the rest of the year, should we still expect a positive free cash flow, and how does it help with the operation or hitting that 500,000 ounce in the near to medium term?

Larry Liu: Yeah, no, for sure. Good to hear that things are doing the Discovery way, doing the best way possible. I guess, kind of on that note as well, Tony and Alison, can you remind us, what's kind of your view for Kidd Creek, both near term and longer term? I know this quarter, because of timing of cash flow, the operation kind of had a little bit negative free cash flow. But for the rest of the year, should we still expect a positive free cash flow, and how does it help with the operation or hitting that 500,000 ounce in the near to medium term?

Speaker #5: And how does it help with your operation or hitting that 500,000 ounce in the near to medium term?

Speaker #6: So, Larry, this is sort of the first and only month that we'll see this cash flow differential that we did see because of the timing of the off-take agreements and the way that the sales agreements were structured.

Speaker #6: The cash is remitted back to the organization in the following month after the sale. And so because the transaction occurred as of June 1st, there will this quarter, because it ended on June 30th, we do see that gap in terms of sale versus cash remittance.

Alison White: Larry, this is sort of the first and only month that we'll see this cash flow differential that we did see because of the timing of the offtake agreements and the way that the sales agreements were structured. The cash is remitted back to the organization in the following month after the sale. Because the transaction occurred as of 1 June, this quarter, because it ended on 30 June, we do see that gap in terms of sale versus cash remittance. But on a go-forward basis, there will always be a one-month lag. But it will be a constant one-month lag, and we will have that catch up in terms of cash and sales on a go-forward basis. So we'll still be a month behind in cash collection. But that will be something that you'll see roll into the overall financials on a go-forward basis.

Speaker #6: But on a go-forward basis, there will always be a one-month lag. But it will be a constant one-month lag, and we will have that catch-up in terms of cash and sales on a go-forward basis.

Speaker #6: So we'll still be a month behind in cash collection, but that will be something that you'll see roll into the overall financials on a go-forward basis.

Speaker #3: Yeah. Effectively, as Harold mentioned, we had almost 30 million in revenue with 19 million in costs. So yeah, the cash is going to come in a month later.

Speaker #3: Based on the off-take agreements, our concentrates get moved, but it really was positive.

Tony Makuch: Yeah, effectively, as Harold mentioned, we had almost $30 million in revenue with $19 million in costs. Yeah, the cash is going to come in a month later based on the offtake agreements and how concentrates get moved. But it really was a positive month.

Speaker #5: Amazing. Sounds good. Thanks again, Tony and Allison, for taking my question. And congrats on a strong quarter.

Speaker #4: A reminder: If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again.

Larry Lu: Amazing. Sounds good. Thanks again, Tony and Alison, for taking my question, and congrats on a strong quarter.

Larry Liu: Amazing. Sounds good. Thanks again, Tony and Alison, for taking my question, and congrats on a strong quarter.

Speaker #4: There are no further questions at this time. I will now turn the call back to Mr. Udding for closing remarks.

Operator 2: A reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.

Operator: A reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.

Speaker #3: Well, listen, thanks everyone for participating in today's call. As you've heard, we've got two key parts that we address when we talk to the market.

Speaker #3: And one is the significant improvement you're seeing in performance as we go quarter to quarter and in this case, particularly compared to last year's second quarter.

Mark Utting: Well, listen, thanks, everyone, for participating in today's call. You have heard we have got two key parts when we talk to the market that we address, and one is the significant improvement you are seeing in performance as we go quarter to quarter, and in this case, particularly compared to last year's Q2. We also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today. On that, Q2 was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call when we can tell you about how much further we have come. Thanks very much.

Speaker #3: But we also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today.

Speaker #3: And that second quarter was a tremendous quarter for us. We expect to continue to make a lot of progress and look forward to our next call, when we can tell you how much further we've come.

Speaker #3: Thanks very much.

Speaker #4: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 2: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Discovery's Q2 2026 Results Conference Call and Webcast. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Discovery's Q2 2026 Results Conference Call and Webcast. The line will disconnect automatically.