Don DeMarco

Don DeMarco inquired if accelerating Mineral Point's pre-development work from 2028 could lead to earlier development and value realization, and how to model production ounces and capture margin upside given higher year-over-year production guidance but undisclosed toll milling contract details.

Answer

CEO Richard Young confirmed that accelerating Mineral Point's development is a priority, enabled by financial flexibility from higher gold prices and recent recapitalization, with a goal to advance permitting and development ahead of schedule. He noted the sulfide toll milling charge is $275-$280 per ton, approximately three times higher than internal processing, and that more detailed cost structures for Granite Creek and Cove will be available with Q2 technical reports. Richard Young also reiterated that Granite Creek generated gross profit in the second half of 2025 and is expected to generate free cash flow in 2026.

Don DeMarco from National Bank inquired whether accelerating the Mineral Point pre-development work from 2028 could lead to earlier development and value realization for the project, and how to model year-over-year margin upside given higher production and gold prices without detailed toll milling contract costs.

Answer

CEO Richard Young confirmed that accelerating Mineral Point's development is a priority due to its high value, enabled by financial flexibility from the recent recapitalization and higher gold prices. He noted the sulfide toll milling charge is significantly higher than internal processing costs, and further cost details for Granite Creek and Cove will be available with the Q2 technical reports.

Don DeMarco asked for clarification on the Thompson Creek CapEx increase, specifically what factors contribute to the lower and upper ends of the new range and if future increases are mitigated by fixed-price contracts. He also questioned the underlying reasons for Centerra's strong cost discipline compared to sector peers.

Answer

Paul Tomory, President and Chief Executive Officer, noted the CapEx increase was due to a 'grab bag of factors.' Ryan Snyder, Chief Financial Officer, elaborated that the range accounts for inflation, extra equipment maintenance, and variability in mining and stripping costs, rather than significant changes in physical equipment costs. Paul Tomory attributed Centerra's cost discipline to Mount Milligan's site-wide optimization program and strong copper byproduct prices, while acknowledging Öksüt's higher AISC is significantly impacted by a royalty tied to elevated gold prices.

Don DeMarco asked for clarification on the lower and upper bounds of the increased capital expenditure estimate for the Thompson Creek restart project, and whether future increases are mitigated by fixed-price contracts. He also inquired about the underlying factors contributing to Centerra's strong cost discipline in 2025 and modest 2026 cost increases compared to industry peers.

Answer

CFO Ryan Snyder explained that the Thompson Creek CapEx increase reflects inflation, equipment maintenance, and mine plan refinements, with the range accounting for variability in mining and stripping costs. President and CEO Paul Tomory attributed Mount Milligan's cost discipline to optimization programs and strong copper prices, while noting Öksüt's higher AISC is primarily due to a royalty linked to elevated gold prices.

Don DeMarco asked about the frequency of Juanicipio dividend payments, noting a payment in Q4 2025 but not in Q3, and inquired about the current arrangement. He also questioned whether Pan American Silver would consider early repayment of the $278 million senior notes maturing in 2027, given the company's strong free cash flow and increasing cash balance.

Answer

Ignacio Couturier, CFO, explained that Juanicipio dividends are paid from tax-paid retained earnings, with a $44 million payment to Pan American in Q4 2025. He anticipates another, potentially higher, dividend in Q1 2026 after Juanicipio completes its tax returns. Regarding the 2027 senior notes, Mr. Couturier stated that the company periodically reviews this, and while the bonds are illiquid, they would consider buying them back if an opportunity arose from a bondholder, as part of broader capital allocation decisions.

Don DeMarco asked two financial bookkeeping questions. First, he inquired about the frequency of Juanicipio dividend payments, noting a Q4 payment but none in Q3, and asked about the current arrangement given past discussions about quarterly payments. Second, he asked if Pan American Silver would consider early repayment of the $278 million senior notes maturing in 2027, given the company's increasing free cash flow and cash balance.

Answer

Ignacio Couturier (CFO, Pan American Silver Corp) explained that Juanicipio dividends are currently paid out of tax-paid retained earnings, with a Q4 payment of $44 million to Pan American. He anticipates another, potentially higher, dividend soon after Juanicipio files its tax return in Q1, indicating that payments are driven by the financial and tax cycles in Mexico. Regarding the 2027 senior notes, Mr. Couturier stated that early repayment is considered from time to time, especially if a bondholder is interested in selling, but noted the bonds' illiquidity and that such a decision would be part of broader capital allocation discussions later in the year.

Don DeMarco from National Bank Financial requested a breakdown of the drivers behind the Q1 cost outperformance (cost control, FX, byproduct credits). He also asked about capital allocation priorities given the strong balance sheet, and inquired about the company's satisfaction with its current silver-to-gold portfolio mix and the levers available to increase silver exposure.

Answer

Executive Michael Steinmann explained that a precise breakdown of cost drivers is complex, though the benefit from byproduct credits is most direct. Regarding capital allocation, he prioritized shareholder returns via dividends and opportunistic buybacks, and reinvestment into the business, particularly the La Colorada Skarn project, over early debt repayment due to favorable bond terms. He acknowledged the current revenue mix is skewed to gold by price performance but emphasized that the company's vast silver resources in projects like Skarn, Escobal, and Navidad provide significant long-term potential to increase silver's contribution.

Don DeMarco of National Bank Financial inquired about the timeline for the Jacobina optimization study, the operational stability at the El Peñon mine post-integration, and the outlook for the Escobal mine restart in 2025.

Answer

COO Steven Busby stated that an update on Phase 1 of the Jacobina optimization study, including a paste plant and tailings alternatives, is expected mid-year. Regarding El Peñon, both Busby and CEO Michael Steinmann confirmed the asset is stable and performing well, clarifying that initial issues were related to drill spacing, not integration. For Escobal, VP Sean McAleer noted that while government personnel changes caused delays, meetings have resumed and a more meaningful update may be available after Q1 2025.

Don DeMarco from National Bank Financial asked if the easing price of Escobal's contingent value rights (CVRs) reflects the restart outlook. He also questioned the focus of the Jacobina optimization study and inquired about potential impacts from Mexico's incoming administration.

Answer

Michael Steinmann (Executive) cautioned against reading too much into the CVR price due to very low trading volume but acknowledged the new government's slower start could be a factor. Regarding Jacobina, Steven Busby (Executive) explained the optimization study is exploring mining method changes to improve resource recovery, potentially leading to higher throughput, with results expected in H1 2025. Steinmann stated it's too early to comment on Mexico's new administration, which takes office on October 1st, but he foresees no major changes.

Don DeMarco asked if the $15 million per month spending at Hod Maden for early site works should be modeled from January 1st, questioning if it precedes a formal construction decision. He also inquired about the significant increase in Marigold's sustaining capital expenditure for 2026, asking if it's a one-time event or indicative of higher future CapEx.

Answer

Executive Chairman Rod Antal confirmed that the $15 million per month spend at Hod Maden is for already committed and ongoing early site works, and it's fair to model it. He explained that Marigold's increased sustaining CapEx for 2026, including fleet replacements and plant upgrades, is a result of an optimized value-driven approach to fleet management, potentially accelerated but not out of the ordinary, as further clarified by EVP of Operations and Sustainability Bill MacNevin.

Don DeMarco asked if the $15 million per month spending at Hod Maden, prior to a formal construction decision, should be penciled into models starting January 1st, and if this indicated getting ahead of the decision. He then inquired if the sizable increase in Marigold's sustaining CapEx for 2026 was a one-time expenditure or if higher CapEx should be modeled for 2027-2028.

Answer

Rod Antal (Executive Chairman) confirmed that the Hod Maden spending was for already committed early site works, including tunneling and civil works, which are ongoing, and it's fair to use this number. For Marigold's CapEx, Rod Antal explained it's due to an optimized approach to fleet replacements and major component rebuilds, based on a total cost of ownership analysis, with some items potentially accelerated for value. Bill MacNevin (EVP, Operations and Sustainability) added that the timing provides a positive financial return.

Don DeMarco sought more clarity on the Çöpler restart timeline, asking if management could confirm it would not occur within a short-term window like one or three months. He also asked about the mine's currently permitted throughput level and the process for updating it post-restart.

Answer

Executive Chairman Rodney Antal reiterated that there is no definitive timeline for the Çöpler restart and would not speculate on a timeframe. He emphasized the company's commitment to Turkey, highlighted by progress at Çöpler and investment in the Hod Maden project. He confirmed that upon restart, the mine would operate under the 2014 EIA at 6,000 tons per day, with plans to seek an updated EIA for higher throughput later.

Don DeMarco inquired if Öksüt's strong stacked tonnage and grade in Q3 suggests continued strong production into Q1 2026. He also asked about improving optics for the Molybdenum Business Unit (MBU) given its critical mineral status and potential for a strategic deal with the U.S. Government.

Answer

President and Chief Executive Officer Paul Tomory confirmed expectations for strong Öksüt production into Q1 2026 and highlighted a new study to exploit accumulated gold inventories in the heaps. Regarding the MBU, Mr. Tomory noted a favorable U.S. mining environment, increased confidence in the U.S. steelmaking sector, and molybdenum's critical role in defense and aerospace, stating they are monitoring potential government deals despite being fully funded.

Don DeMarco inquired if the strong stacking grade at Öksüt in Q3 (1.5 million tons at 1.82 g/t) suggests another robust grade quarter in Q1 2026, and also asked about improving optics for the Molybdenum Business Unit (MBU) given its critical mineral status and potential for a strategic deal with the U.S. government.

Answer

Paul Tomory, President and Chief Executive Officer, confirmed expectations for strong production at Öksüt into Q1 2026, highlighting the mine's consistent positive reconciliation and the ongoing life-of-mine optimization study to exploit accumulated gold inventories in the heaps. Regarding the MBU, Mr. Tomory noted a favorable environment for U.S. mining, particularly for molybdenum, due to increased confidence in the U.S. steelmaking sector and demand for high-performance steels. He stated that Centerra Gold is fully funded for the Thompson Creek Restart and monitors government opportunities but has nothing specific to report.

Don DeMarco asked about the impact of infill drilling on confidence at the Mount Milligan mill, the key factors driving the decision to now proceed with the Goldfield project, and the company's ability to finance its project pipeline.

Answer

EVP & COO David Hendriks confirmed that increased drilling density has significantly improved grade prediction confidence for the next 18 months. President & CEO Paul Tomory added that the Goldfield project's economics were enhanced by technical optimizations improving recoveries and a much higher gold price. Tomory also affirmed that the company's existing liquidity is sufficient to fund all major projects, including Goldfield, Mount Milligan, and Chemez, while continuing shareholder returns.

Don DeMarco inquired about the Kemess project's preliminary economic assessment (PEA), focusing on the shift from block caving to long-hole open stoping, the potential for lower initial CapEx, and whether the project could be internally funded. He also asked for clarification on the potential synergies with the Thesis Gold Lawyers-Ranch project.

Answer

President and CEO Paul Tomory explained that the company shifted to an open pit and conventional underground mining concept for Kemess to avoid the excessive development CapEx and timeline of the previous block cave plan. He affirmed the company's intent to fund all development projects, including Kemess, with existing and future liquidity, without accessing equity or debt markets. Regarding synergies, Tomory clarified that Kemess's existing infrastructure (airstrip, power line, mill) could serve as a key hub for broader development in the Toodoggone district, including for projects like Thesis Gold's.

Don DeMarco of National Bank Financial requested a breakdown of the 2026 production outlook for Skourias between the first and second halves of the year and asked about the strategy and expected pace of the NCIB share repurchases.

Answer

President & CEO George Burns explained that 2026 production from Skourias will be heavily weighted to the second half, as Q1 will be for early commissioning and Q2 will be a ramp-up period. EVP & CFO Paul Ferneyhough noted that the new 12-month NCIB program will be executed opportunistically to return value to shareholders, particularly when the stock price is low, without committing to a specific rate.

Don DeMarco of National Bank Financial questioned the lighter-than-average Q1 CapEx for Skouries, whether the completion of procurement de-risks the project's budget, and the rationale for the significant, tenfold increase in the NCIB authorization.

Answer

President and CEO George Burns clarified that Q1 Skouries spending was in line with expectations, with costs set to increase in Q2 and Q3 as major equipment installation accelerates. He stated that with procurement complete, the primary focus is on execution, and he is confident in the schedule and budget due to strong labor visibility and productivity. CFO Paul Ferneyhough added that the larger NCIB reflects a strategic shift to prioritize shareholder returns, enabled by a strong balance sheet and confidence in the business.

Don DeMarco from National Bank Financial inquired about the expected throughput profile for the Magino mill through the rest of Q3. He also asked if the Island Gold mine would contribute more than its typical 1,200 tonnes per day in the second half of the year and sought clarification on whether the reiterated consolidated production guidance applies to each individual mine.

Answer

COO Luc Guimond explained that the Magino mill ramp-up would be gradual through Q3, expecting to consistently hit 11,200 tpd in Q4. He confirmed that Island Gold's contribution would increase, targeting ~1,300 tpd in Q3 and ~1,400 tpd in Q4. President and CEO John McCluskey affirmed that to achieve the consolidated guidance, the company must meet its targets on a mine-by-mine basis and expressed confidence in the guidance provided for each operation.

Don DeMarco asked if the planned catch-up in sustaining CapEx for the rest of the year was expected and aligned with projected cost reductions. He also inquired about any cost impacts from recent tariff announcements and foreign exchange volatility. Lastly, he requested more color on the upcoming Island Gold expansion study, including its scope, timing, and potential capital expenditure.

Answer

Greg Fisher, CFO, confirmed the sustaining capital spending profile is proceeding as planned, with a lower Q1 followed by a catch-up. He noted no current impact from tariffs, as the cost base is primarily labor and energy, and added that the company is benefiting from a weaker Canadian dollar. Luc Guimond, COO, added that the Island Gold expansion study, due by year-end, is evaluating a larger mill complex and is contemplating an increase in Island's underground mining rate to approximately 3,000 tonnes per day.

Don DeMarco from National Bank Financial asked about the Marmato mine's development, questioning when underground mining rates would scale to feed the upsized 5,000 tonne-per-day mill. He also inquired about the strategic intention for the Toroparu asset (build vs. sell) and the company's capital allocation priorities following the expected cash inflow from warrants.

Answer

Executive Richard Thomas stated that the Marmato ramp-up will be steady from H2 2026 into 2027, reaching 4,000 tpd relatively quickly before hitting the full 5,000 tpd. An Aris Mining executive added that the strategic decision on Toroparu depends on the study results, though building it is likely the best value option. The executive also noted that capital allocation priorities for projects like Soto Norte and Toroparu will be decided after their respective studies are complete.

The analyst inquired about the timeline for scaling up underground mining rates at Marmato to supply the upsized mill. They also asked about the company's strategic intention for the Toroparu asset (build vs. sell) and the priority for capital allocation after the warrant proceeds are received.

Answer

The Marmato mine will ramp up steadily from H2 2026, reaching 4,000 tpd quickly and the full 5,000 tpd in H2 2027. The strategic decision for Toroparu will depend on the results of the PEA study, though building it is considered a high-value option. Capital allocation priorities beyond Marmato will be determined by the outcomes of the studies for both Soto Norte and Toroparu.

Don DeMarco from National Bank Financial asked about the Marmato project, questioning when underground mining rates would scale to feed the upsized 5,000 tpd mill. He also inquired about the strategic intention for the Toroparu asset (build vs. sell) and the company's capital allocation priorities following the expected inflow from warrants.

Answer

Executive Richard Thomas stated that the Marmato mine will ramp up steadily from H2 2026, reaching 4,000 tpd relatively quickly and the full 5,000 tpd in H2 2027. Regarding Toroparu, management indicated the decision depends on the PEA results but building it is likely the best value option. The pecking order for capital allocation will also be determined by the outcomes of the Soto Norte and Toroparu studies.

Don DeMarco from National Bank Financial asked about the potential for inflationary cost pressures at the Marmato development project, similar to those experienced at Segovia, and inquired about what portion of the remaining Marmato capital expenditure is secured under fixed-price contracts.

Answer

COO Richard Thomas addressed these concerns by stating that the company is confident in the current $280 million total cost estimate for Marmato, as it was recently reviewed. He clarified that many costs, particularly for milling equipment, have been locked in with deposits already paid. Mr. Thomas estimated that approximately $100 million of the remaining capital, covering the twin declines and the plant, is secured.

Don DeMarco asked if Aris Mining is seeing potential inflationary pressures on the Marmato development budget, similar to the cost increases experienced at Segovia. He also inquired about what portion of the remaining Marmato capital expenditure is secured under fixed-price contracts.

Answer

COO Richard Thomas responded that the Marmato capital budget was recently reviewed and the company remains confident in the $280 million total cost estimate. He explained that many costs, particularly for milling equipment, have been locked in with deposits already paid. Thomas specified that of the remaining capital, approximately $100 million, covering the twin declines and the plant, is secured under fixed-price contracts.

Don DeMarco inquired about the expected revenue impact from increased production at Granite Creek, considering the dewatering progress and rising gold prices. He also asked for clarification on a recent ATM draw and the current status of the ATM program.

Answer

Richard Young, an executive, explained that due to a 120-day lag between shipment and payment under their toll milling agreement, a direct revenue catch-up is not immediate, though the Auramet facility helps manage cash flow. He confirmed the Q1 ATM proceeds were from early in the quarter and that the ATM program has since been terminated with no plans for reactivation.

Don DeMarco inquired about the expected revenue gains for the remainder of the year from increased production at Granite Creek, considering the lag in ore sales from the toll milling agreement. He also asked for clarification on the status of the company's At-The-Market (ATM) facility.

Answer

Richard Young, an executive, explained that there is a 120-day lag between ore shipment and receiving proceeds from their toll milling partner, which will delay revenue recognition despite the Auramet facility supporting cash flow. He also confirmed that the ATM facility was used minimally in early Q1, has since expired with the transition to U.S. GAAP, and there are no plans to reactivate it.

Don DeMarco of BMO Capital Markets inquired about the future trend of refractory ore toll milling at Granite Creek, its potential as a significant liquidity source, the reasons for the Ruby Hill joint venture delays, and the status of the CEO succession plan.

Answer

President and COO Matthew Gili explained that Granite Creek is transitioning from oxide ore sales to more favorable toll milling of refractory materials, with production ramping up after a development-heavy first half. CEO Ewan Downie attributed the JV delay to the complexities of ensuring a robust partnership agreement for a flagship asset, which included a lengthy metallurgical due diligence process. Downie also confirmed the CEO succession plan is proceeding, driven by a need for operational leadership and personal health considerations.

Don DeMarco of National Bank Financial inquired about the future trends for toll milling refractory ore at Granite Creek, its potential as a material source of liquidity, the reasons for delays in finalizing the Ruby Hill joint venture, and the status of the CEO succession plan.

Answer

Matthew Gili, President and COO, addressed the Granite Creek questions, explaining that the company is transitioning from oxide to higher-value refractory ore and is in a ramp-up phase after a development-heavy first half. He noted that while no formal guidance is provided, production is increasing. CEO Ewan Downie explained the Ruby Hill JV delay was to ensure the partnership terms were correct and to complete a necessary four-month metallurgical due diligence program, with final documentation now in progress. Regarding his succession, Mr. Downie stated the plan was initiated two years ago to bring in a leader with more mine-building experience and also cited personal health reasons, confirming a transition is expected.

Inquired about the Valentine Phase 2 expansion, specifically whether it is contingent on increased mining rates or exploration success, the projected ramp-up of mining rates, and the timeline for exploration and a potential technical report for the Frank Zone.

Answer

The Phase 2 expansion is supported by existing stockpiles and resources within the current mine plan and is not contingent on new exploration success. Mining rates can be flexed to improve economics. The company is focused on understanding the full scope of the Frank Zone and the broader property and does not anticipate releasing a new technical report within the next 12 months.

Requested more details on Sadiola's Q3 production, its ability to sustain production after the Korali-Sud bridge, features of potential non-dilutive financing for Kurmuk, and the critical path items for Kurmuk's construction schedule.

Answer

Sadiola's Q3 production was impacted by permitting delays for Korali-Sud under Mali's new mining law. After Korali-Sud is depleted, Sadiola's future relies on its large fresh ore reserves, which will be accessed via phased expansions. For Kurmuk financing, the company is pursuing favorable terms like exploration upside protection and buyback options. The critical path for Kurmuk's construction is the CIL (carbon-in-leach) circuit.

Don DeMarco from National Bank Financial asked for a breakdown of the 2025 production outlook, specifically the contribution from Fekola deferrals, regional ore, and underground development. He also questioned when the Fekola equipment availability issue would be fully resolved and if there was any risk to the timeline.

Answer

An unnamed executive clarified that the 2025 outlook reflects a replacement of ounces by sliding the high-grade zone from Phase 7, rather than a net increase, with regional and underground development plans remaining on track. Executive William Lytle confirmed the equipment issue is already addressed by deploying replacement excavators, noting Q3 production targets are being met. CFO Michael Cinnamond added that while mining costs will rise to catch up, this is partially offset by a ~25% reduction in fuel costs.

Don DeMarco of National Bank Financial asked if B2Gold plans to release updated guidance on the Goose Project's post-production operating expenses. He also inquired about the timeline for developing the Fekola underground mine and converting its resources into reserves.

Answer

CFO Michael Cinnamond confirmed the company plans to update the full project package, including OpEx, once the resource model is updated with the next Annual Information Form (AIF). Regarding Fekola, management expects to be in mining operations in late Q1 or Q2 2025. Executive Chairman Clive Johnson added that drilling will accelerate once the regional exploitation permit is secured to help convert inferred resources.

Don DeMarco from National Bank Financial asked for details on the next steps for the Kingfisher discovery, including drilling plans and the potential timeline for incorporating its ore into the Seguela mine plan.

Answer

President and CEO Jorge Alberto Ganoza explained that the immediate plan for Kingfisher is to continue drilling through year-end to establish a first, primarily inferred, mineral resource estimate. He noted it is a significant 'blind discovery' and potentially the largest deposit at Seguela. However, it is too early to set a timeline for its inclusion in the mine plan, as this will require resource upgrades and permitting, with more clarity expected in early 2025.

Don DeMarco from National Bank Financial asked for more details on the Kingfisher discovery at the Seguela mine, including the next steps for exploration, the amount of infill drilling required, and the potential timeline for incorporating its ore into the mine plan.

Answer

President and CEO Jorge Durant reported that 14,000 meters have been drilled at Kingfisher, outlining mineralization over a 2-kilometer strike. The immediate plan is to continue drilling through year-end to produce an initial inferred resource estimate. He stated it is still early to provide a timeline for its inclusion in the mine plan but emphasized the discovery's significance, noting it is shaping up to be potentially the largest deposit at Seguela.