Discovery Silver Corp Stock

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. [Operator Instructions]

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.

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, I'm 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 Leavoy, our Senior Vice President, Mineral Processing; Harold Bird, our Vice President, Mineral Processing; Eric Kallio, our Senior Vice President of Exploration; 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. 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. And 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 U.S. dollars unless otherwise indicated.

With that, I'll now turn the call over to Tony Makuch.

Thanks, Mark, and good morning, everyone. It's really good to be with you here. Actually, you know a lot of [indiscernible] I think maybe before we started, we had a really -- I think -- we had some pretty good results in the quarter [indiscernible] went well or progressing well. I know that -- like there's a lot of stuff hiding in the back room and maybe people all will see and talk about a lot of people did a lot of good work, a lot of people that did learn good work. Some of the results aren't really shown in this quarter. You'll be seeing them in future quarters. But what we talk about and all the benefits that we -- that we see in all the results of [indiscernible], we get the chance to talk about it, and tell you about it, but there's a lot of real 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's doing.

So stay tuned. We're going to talk about good things that happened here, so stay tuned, there's still a lot .

Anyway, I'll start with Slide 3. 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 and how it's about our growth to over 0.5 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 Cordero a 14 million ounces of silver production rate, but on an equivalent -- silver equivalent basis, depending on silver prices here significant zinc and lead production there and definitely a world-class silver project in Mexico just waiting for a permit.

And then looking at our gold business and what we're doing, we now believe that growth has the potential to be significantly greater than what we showed here, and make that a 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.

Moving to Slide 5. Second quarter was favorable, and we did have a lot of good works. And definitely, we've done a lot of progress in advancing our growth plans. And maybe there are 3 key developments during the quarter that maybe highlight when we get. First, we completed the acquisition of Kidd operations. Second, we continue to achieve outstanding exploration results. And we -- and on the exploration results, like we originally were putting all in 1 press release now we put our 3 press releases in the last 3 weeks. So instead of lumping them in one, there's so much good information and all we realize we probably have to start presenting them each individually. And you can see this actually drove results at all of our exploration targets. And and we expect that to continue.

We really think that this is -- as much as this is a production and business story and a going concern operation that's financially viable, and as much as this is a growth story, this is really -- this could be an exploration story as well on steroids. And so we had a lot of good exploration results, and we did ramp up our investments in the quarter. And then we've had definitely we're focusing on from to improve our operations.

Going to Slide 6, this looks at the Kidd acquisition. I think when in our last call, we did talk a lot about it -- about it. But it's coming up the growth we talked about, this is really a big enabler. Besides the expiration, besides the -- how the people and what we're doing in the Porcupine camp, but besides all the due 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 time frame that we plan to achieve it.

And a big part of it is a Kidd metallurgical site and what we can do there. And we'll probably be talking more and more future as the year progresses in terms of the benefits of that. We're 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. And maybe when we talk about it, there's a current processing capacity there. But for us to grow our operation, optimize [indiscernible] without this infrastructure and the geography, the land position, the power of the water, the company [indiscernible] I could talk to maybe I shouldn't.

And this is 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 plans, construction, a new conventional gold or incorporated into space. That was the A division. You can see that some of the conceptual diagrams up where the infrastructure will go. We are currently reviewing what this circuit will look like and our advancing engineering and design work. And I can tell you that we have moving parts, exploration success and I sort of our productivity rates that we might design for. There's still a lot of being added to the story.

So a lot of blind pages. We might have a lot of headings on chapters written in the book, but all the content is being rewritten as we speak in terms of what we're doing there.

To be circuit, that's at Kidd. There is 4 circuits as we've talked about before. To be circuit will continue to be used as a base metal circuit and now processing the Kidd materially for 2026 and all of 2027. For the C circuit, we are doing test work now, and we expect that this circuit will be used to process Borden starting sometime next year. And we see this, this could add something up to 40,000 ounces in annual production just in a current form, and where did we get that from here, it will add 2,000 tonnes a day of added availability. We can see improved metallurgical recoveries at all -- at the [indiscernible] mill currently plus we think we're going to get that agreement and recoveries from Borden, right? And it also gives us the ability to process higher levels of Borden ore at Kidd.

So maybe give 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.

And with the Kidd met site, we also investigated future plans for the D circuit. Our goal would be to have the TBZ and/or other materials processed here. And -- so we still have a lot of work there have been really and really an enabler in a lot of ways.

Slide 8 looks at the expiration. And I mentioned we had 3 press releases over the last few weeks all with excellent results. Eric is going to talk about this later, so I'll just focus on a couple of things and then maybe highlights. We're excited about [indiscernible] on recent drilling and tied into past drilling, we've established that the mineralized system over. We've identified over so length more than 4 kilometers. The system remains bolden in all directions and at depth. And we've talked previously about the depth potential in this region of the camp in terms of depth of Hoyle Pond where it found 2,000 meters, I should say, and the depth set was at the [indiscernible] project, which is on strength -- on the same system, it's not a mine that we have, but was mined down to 5,000 feet.

So there's significant upside here. We're currently working on redesign for the Palmar pit, and we expect [indiscernible] become a much larger producer. And with that, as I talked about earlier in terms of the processing capacity at what we might build a Kidd circuit to support a much larger open pay operation here.

And the other point that I'll make is that only is the second large open-pit operation, we expect be able to bring online. It has transformational growth potential and by what we do at Kidd -- with the Kidd A circuit and being able to move [indiscernible] there. This enables the [indiscernible] in its current form to use the process and to start the dome open pit. This is -- again, this is all future-looking stuff. We do also have longer term to aldermen tires a potential third large-scale open pit.

Again, that's maybe we just we just start with the [indiscernible] Dome. But we truly believe that the income Discovery operates 3 of Canada's largest silver and gold mines, all located in the Timmins county.

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 fronts tailings, advancing our tenants percent build the pertains capacity. We continue to do pre-stripping at Palmar. Our goal is [indiscernible] to commercial production, and we're investing in new fleets of equipment and infrastructure will pull up on and Borden we expect to see further progress and further investments and CapEx over the years, set that's been [indiscernible] invest it back into the operations to build to not only build production but also to improve the operating performance, so not just growing production, but improving performance and reducing costs.

Unit costs, I think maybe if I should highlight that better. In terms of Slide 10, it highlights our Q2 operating performance. Again, on the side will lead the for financial results for Alison's review, but I'll say that virtual financial metric improved substantially from last year's second quarter. 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. Duncan and Gord will get into the details, but the increase was largely due to higher throughput and a key highlight for the quarter was that both mining and milling rigs 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. And again, we tell you that we are tracking well to achieve all of our guidance for the year. And with that, I'll turn the call over to Alison White, our CFO.

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. 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 June 1. The which did contribute $30 million to revenue 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. We've 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 and partially offset by a planned reduction in grade. As a result, cash cost per ounce were $1,387 per ounce sold.

As we've said before, we expect unit cost to be the highest in the first half of the year and improved during the second half of 2026 as production and sales volumes built. 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.

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, and similar to my comments on revenue, we've 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 for -- in the month following for sale according to the new offtake agreements.

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 the reinvestment in the business through the company's capital expenditure program 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. The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a onetime 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 110 costs had a $0.01 impact the purchase price allocation adjustments related to the Kidd acquisition for the fair value also had [indiscernible] impact; and finally, another set for payments to First Nations in relation to the closing of the Kidd acquisition and reclamation expenses for nonoperating sites.

To summarize, adjusted earnings were up quarter-over-quarter and nearly 3x from only 1 year ago when the company initiated operations through the acquisition of Porcupine.

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 million to $235 million planned for growth capital at Porcupine, including an additional $25 million to $35 million for capitalized exploration and $120 million 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. As we look to continue to expand and grow, our financial strength will be fundamental to our success. We continue 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 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.

And I'm now going to pass it over to Duncan King, our Senior Vice President of Canadian Operations.

Thank you. I'll discuss our production numbers and then ask Gord Leavoy to review our processing performance. During Q2, we achieved record production of 67,300 ounces, 12% higher than in Q1, gold board and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tonnes processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of the 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 tonnes 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 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 paid up a lot for a lot of that in Q2.

I'll now call on Gord Leavoy to talk about the milling.

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 tonnes 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 tonne in last year's third quarter.

I'll now turn over the call to Harold Bird, Vice President of Mineral Processing to discuss the Kidd operations.

Thanks, Gord. Good morning. Overall Kidd operations had good performance in the first month since its acquisition contributing a positive revenue of $30 million versus production cost of $19 million. Kidd's growth capital primarily related to tailings bucketing and mill modifications to support the processing of board and ore which is targeted to begin in the first half of 2027.

Further study work has commenced to expand to the Kidd mill process to process [indiscernible] in future years. Kidd operations continues to be a safe, reliable operating mine that currently has a total reportable injury frequency rate of 0. I'd now like to turn the call over to Eric Kallio, our Senior Vice President of Exploration.

Thank you, Harold, and good morning, everyone. I'm on Slide 18, and happy to say this has been another good quarter for exploration of excellent success at operating mines and new growth projects. With this in mind, we not look at, but I'll start here with Pamour where result another 47 holes, we continue to contain some very exciting new results.

[indiscernible] any focus here has been remained on 3 targets, including the main pit, Pamour West and the contact zone. Additionally, we had a new target in the next, it's called [indiscernible] which is just located west of the many pit.

Results for each of the areas are shown in the parent image indicated extremely positive with some of the best results containing to come from the main pit, including highlights of the 3 over 30 meters and 20 over 24 meters. This continue to see strong results from the Pamour West for our contact areas, including several holes, multiple zones and excellent grades and pits.

And then finally, we have the [indiscernible] trend where we're very happy to report a high-grade results of 7.36 grams per tonne over 5.9 meters in the very first hole drilled, 200 meters less than the current resource.

Now turning to my next slide, #19. You see the first 2 images providing different angles for the areas drill with this first one, looking to the north, we focused on the sell side of what called Pamour trend. Key things to note here are the main pit in Pamour West areas, which are in the central and left side of the slide as well as the overall size of the target area, which we're looking at here to this point, -- that's just a little over 4 kilometers low and at least 400 meters.

Also notable is the very shallow depth of drilling to date in both areas and the large areas still remaining to be tested below and between.

Then turning to the next slide, which is #20. We see as you look in to the Southwest, providing a better view for the north side of the pit. Key things to note here would be the current resource, which is in the background as well as all-in intersections in the North Contact and [indiscernible] areas, which sit back to the north. As provided here is another angle [indiscernible].

So given all above, we're very pleased with progress to date at Pamour continuing here for bill. 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.

So then going on next to Slide #21, we see the Dome, which was another project, which we believe has a lot of potential. As previously described, Dome's historic mining property already has over 17 million ounces mined were already -- and where we have a resource of over 11 million ounces, but also now working upgrading extend for an updated estimate this year. As indicated on the image, all the new drilling is in the areas surrounding the current resource with focus on areas to the Southwest, North and Northeast portions of the property as results continue to look very encouraging.

Drilling in the southwest portion of the property [indiscernible] evaluate mineralization near the South limits and continue to indicate excellent raising risk at very shallow gas. This needs to have 8 more holes in the north part of the property and under [indiscernible] which we're also very successful with multiple intercepts including a highlights of 9.09 over 17.3 meters.

And then finally, we had 1 new hole to the Northeast intersecting a court steam near the East limit and containing a very high rate asset of 278.4 grams over.

So then turning to my next slide, 22. You see another game that's related to, which provides 2 different viewing angles across the target in a little more detail on the new results. With the one on the top part and the southern part of the pit, looking northwards, on the other covering areas to the north and looking west. The things to note here will be the [indiscernible] outlines, which represent current it sells and underground workings as well in the shallow depth and excellent rates in both areas to remain open for future testing and expansion.

So with this, I'll conclude by saying that similar to Pamour drilling, here is looking very good, dining with 2 drills, to the dose, where is also now begun on a new resource update and on track for year-end.

So then turning on to my next slide, 23, 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 [indiscernible] that was partially drilled and defined by pass operators, which remain in sells related to support a median estimate for later this year. Shown on the screen, there are 2 different angles or on the deposit with both being long sections and providing different levels of detail.

Turning toward the left, we see more of an overall view of the size of same zone, as indicated looking at a large northeast coding structure just south of the line between [indiscernible] and where mineralization is contained mostly in a series of lenses that are highlighted here in prior colleges.

Also important to note here on this slide is post proximity is the zone to the current line working and location of various drug platforms, including 1210 and 1680 levels, which we have been using for most of the drilling today.

Referring now more to the right-hand side, we see details for the new drilling, which as indicated are all has been focused on dealing on the 1210 and 1680 levels and looking very positive. And just to give you 2 examples, what we're seeing basically looking at values of 5.13% over 18.2%, [indiscernible]. Important to note that all of these intersections are similar to or better than previously built holes in these areas.

Aside from [indiscernible], I would also like to point out that as part of the latest program, work is also initiated collect samples from the [indiscernible] testing from holds near the 1210 with a total of 4 samples not fleet and shipped out with results expected later this year. Above, we're very happy with the progress so far. The program is continuing with 3 drills on 1210 and 1,680 levels.

Turning now to the next slide, which is -- you see all Creek, where we completed another 10 holes and continue to confirm and expand realization near the [indiscernible]. This for context, the [indiscernible] is located 1.5 kilometers west of [indiscernible], which is the same contract with also mine. The pit as well as 200-barrel reps, which you see here an image where the posted by [indiscernible] in the 1980s.

Shown on screen are teenage at the one of the left being the plan of the dual area and the one in the break being a long section providing more details. [indiscernible], we see the new drilling targeted 2 main areas on the east and west side of the pit and continue to obtain very positive results with some of the key volumes on the East side being [indiscernible].

So turning now to the right side, we see you looking notes across the sale, they deal again another [indiscernible] net results and showing the overall pattern of gold going to depth for West East [indiscernible] on the left are the ones drive directly below the pit, and the ones in rate what we call into wide high-grade zone.

Also important to know here is what we think is very good continuity between the areas and limited drilling, which exist below the 650-meter level and in areas going to [indiscernible].

In terms of current activities, drilling is continuing here with 2 drills on site focused on Borden compilation expansion. Additionally, in light of the good success work has now been initiated on a new exploration rep from all online, which will allow more detailed building both here and in the areas between. Although not shown image expected the [indiscernible] zone from the East side clear to 300-meter level and allow quick access to the zone. The expected completion date is in Q3 2027.

And then turning to Slide 25. We see an overall view of the [indiscernible] where we have also been very busy. As described in the past, Borden is located west of tenants and Center on the major East West [indiscernible] zone called the main zone, which has now been traced and part of mine for distance of over 2 kilometers. In terms of recent exploration, pretty much all work is focused on the far east side and on standing the main slower zones from platforms, underground near the 585 level as well as the surface purities of the model -- of the main zone.

In terms of results, we have all been very positive with excellent grateful risks, both within and outside the current resource shapes in both sales targeted at some of the key highlights reaching levels such as [indiscernible]. And the highlight of the program, I think the new introduction on service of 6.34% over 8.7%, 500 meters downplunge from [indiscernible] resource.

So then moving on to Slide 26. I have one more image related to this area, which is a [indiscernible] north words across the areas and showing more detail on all renewals. A few things to note here might be that all the roles will grow from the 85% level, which is the green line at the top of the rent and targeting at and beyond the current end of [indiscernible] resource, which is shown here in light blue. I also point out locations in [indiscernible], which is in the [indiscernible] meters from the current resource.

So with this being my last slide, which is like say in summary, things still continue to go well and bought more to come. So with that, I'll pass over to Jose Jabalera, our VP, Corporate Affairs and Sustainability.

Thanks, Eric. In Cordero, on July 24, we received an official visit from senior level seminar officials with very good outcome from the project and from the visit. 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 power for the project. So I will pass to our CEO, Tony Makuch.

Thanks, everybody, and this one, hopefully, not hopefully the last slide. It be the last slide, Slide 28, and I think you get a sense there's a lot of things going on, whether they've operated long separation, development, a lot of excitement projects here in this slide and really just a slide that maybe we put together when we first started, with the acquisition of [indiscernible] with Discovery, we tried to show out how gold production could grow well over 0.5 million ounces a year. And by the way, it doesn't include Cordero, which's is even over and above that.

But -- you can see from our quarter 2 results, we achieve an expiration, the acquisition of Kidd, our continued investment in operations. It's -- we see how we're demonstrating what's going on here that we're taking the vision from concept to reality in terms of what we can build in purchasing and build into Discovery as a whole.

Looking at the slide, [indiscernible] talked about, now expect it to become a much larger in mind at 150,000 ounce a year producer outlined in last year's technical report that we showed 106,000 ounces a year after 2047, I think, in the report.

As I mentioned, we're taking -- we are working on a mine redesign for Pamour and a new large-scale processing clients a decade to support this. This then unlocks the Dome mill or Dome mine, which at current levels are great, it 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. We also have growth potential at Borden, as outlined by Eric in terms of what we see, plus the processing as you build processing capacity for both Borden and then looking at the investments we're planning. And then there's TVZ and Al Creek [indiscernible] we have -- we're planning an initial reported Q1 resorts for keeping later this year, and we'll continue working towards our results at Al Creek.

There's still a lot of work to be still to be done. There's probably some exploration targets. I know there is that we haven't even talked about here, it is much more to our story lying ahead of us and a lot of exciting things to. I think 1 of the things, though, that's also important, and maybe we should acknowledge and Harold talked about the safe performance at Kidd [indiscernible] 0. And I know there's been a significant improvement in our KMI FR and all of our mine operations down to one. So effectively, we're running mines here underground mines and a good mines and processing plants and the Timmins camp that safer to work [indiscernible] working at Walmart or working at Canadian tighter. 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 we'll be happy to take any questions.

[Operator Instructions] Your first question comes from the line of Larry Liu with CIBC.

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, for time your 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 operational optimization from here?

Yes, 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 recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont. 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. 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 -- with the full complement of everything that we typically look at and that we typically like to track.

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 and we'll be able to provide some additional clarity on all the growth that's coming in the future.

In summary there, like effectively, we were -- we've been operating under the code of accounts and accounting practices that we're limited to what our [indiscernible] was set up under Newmont. We've done -- we can now implement it more on our way, as Alison mentioned, and we have a different view on our management accounting and how we can counter things we see that as a big value driver in terms of maybe, let's just say, we can turn to finance team and accounting team from into profit centers for the company.

Yes. No, for sure. Good to hear that things are doing the Discovery wage in the best way possible. And I guess kind of on that notice will 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 your cash flow the operation kind of had a little bit negative free cash flow for the rest of the year, should we still expect positive free cash flow? And how does it help the operation or hitting that 500,000 ounce in the near to medium term?

So Larry, this is sort of the first and only months 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. And so because the transaction occurred as of June 1, there will -- this quarter because it ended on June 30, we do see that gap in terms of sale versus cash remittance. But on a go-forward basis, there will always be a 1-month lag, but it will be a constant 1-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.

Yes. Effectively, as Harold mentioned though, we had almost $30 million in revenue with $19 million in costs. So yes, the cash is going to come in a month later based on the offtake agreements and now concentrates get moved, but it really was positive mind.

Congrats on a strong quarter.

[Operator Instructions] There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.

Well, listen, thanks, everyone, for participating in today's call. You've heard we've got 2 key parts when we talk to the market that we address. And 1 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. 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. And on that second quarter was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call, and we can tell you about how much further we've come. Thanks very much.

This concludes today's call. Thank you for attending. You may now disconnect.

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery First Quarter 2026 Conference Call and Webcast.

[Operator Instructions] I will now turn the call over to Mark Utting, Senior Vice President, Investor Relations for Discovery. Mr. Utting, you may begin your conference.

Thanks very much, operator, and thanks, everyone, on the line for joining Discovery's First Quarter 2026 Conference Call and webcast. Joining me today are many members of the Discovery senior management team. Speaking will be Tony Makuch, our President and CEO; Alison White, our Chief Financial Officer; Pierre Rocque, our Chief Operating Officer; Eric Kallio, our Senior Vice President, Exploration; and Jose Jabalera, our Senior Vice President, Corporate Affairs and sustainability in Mexico. And again, there are many other members of our senior executive team in the room as well.

Before we get started, I'll 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. They are subject to risks and uncertainties, and actual outcomes may not be what is included in those statements. I refer you to Slide 2 as well as our website for further information on that. In addition, we will also be making reference to a number of non-GAAP measures during the presentation.

These measures do not have any standardized meaning and they are under GAAP and, therefore, may not be comparable to other issuers. I refer you to Slide 3 on our deck as well as our website for more details. Finally, all dollar amounts will be in U.S. dollars unless otherwise indicated.

Now turning to the quarter. To begin with, as many of you know, we're working towards more than doubling gold production at Porcupine to over 500,000 ounces per year. At the same time, we're working towards developing our Cordero project in Mexico through which we will produce about 14 million ounces of silver per year at least over the first 10 years. we plan to achieve these levels of performance while averaging the lowest half of the global cost curve for both gold and silver. And we're going to achieve these milestones using a disciplined approach to investment with the focus on investor returns.

During the first quarter, there were a number of key developments in support of achieving our growth objectives. Specifically, we announced the acquisition of Glencore Kidd operations in Timmins. We also reported continued outstanding exploration results in and around Timmins, and we continue with our investment programs through which we will both grow and optimize our current operations.

Getting into those in a little bit more detail, looking Kidd on Slide 6. We announced the acquisition of the Kidd operations on March 2. We expect that transaction to close very soon likely over the next few weeks. This is a major milestone for our company to achieve over 0.5 million ounces of annual gold production, we require additional milling capacity. Through the Kidd met site, we have an opportunity to dramatically grow processing capacity and to process different kinds of war. There's lots of other benefits as well, including adding valuable infrastructure that will support the future expansion of both Hoyle Pond and Pamour , including the development of TVZ.

It gives us exposure to critical minerals, copper, zinc and silver through Kidd Creek Mine significantly more exploration potential to our already very large and highly prolific portfolio, delivers cost synergies, and this is a very important point. Adds a very large, highly skilled workforce that's going to help us with our existing growth plans.

Going to the next slide. This gives you a view of the Kidd Met Site and a conceptual plan for what we expect to do and are currently evaluating. It's a conceptual plan but it kind of points -- show you our thinking in terms of the path forward. And maybe at this point, I'll turn it over to Tony to talk about that.

Okay. And maybe just a couple of simple things. I mean, people should understand first off, that the Hoyle Pond underground operations are actually under the Kidd Met Site. And you can see that the blue rectangular box here is trying to show where the location could be for any new vent raises we can establish for the Hoyle Pond Mine as well as potential location would be for a new shaft that we wanted to develop for the TVZ Zone. But also what we show here, there's -- we've alluded to before the circuits at the Kidd Met Site. And you can see where it had a division, and we sort of tried to conceptualize on here what would be involved in building and it show the location where we build it in 5 million to 7 million tonnes per annum conventional gold circuit at the plant with [indiscernible] crushing and how would that fit in. We still continue to use the B division here, which is the base metal circuit, it's flotation circuit.

The division, we're working pretty hard right now on that. That's about 1 million tons a year of capacity. So looking at where the aspect of bringing the Board North to here and run it through this division as early as we can over the next 6 to 12 months, and that would unlock 2,000 to 3,000 tonnes a day of the capacity in the [indiscernible] for conventional processing. And you can see that these circuit at were here, which we would turn into a gold refractory floatation circuit. But on the other cycle, all the A,B the B,C and the circuits that are here could always be utilized as combination-based metal circuits that we needed to handle a gold circuit that's required. So give you the sense on what is can unlock for us, basically, if I -- you can look 6 million to 8 million -- sorry, 7 million to 9 million tonne a year, new gold processing capacity at the Kidd Met Site, A division as a conventional circuit, C division for processing 1 million-ton a year for processing.

The Board [indiscernible] us on the division, which we would use to redo process refractory ores and [indiscernible] effectively refractors would be the TV set on as we're talking about. And then the general location where it is, [indiscernible] doesn't this figure doesn't show where the Pamour operations are near. But the Pamour open pit operations are less than 0.5 kilometer from the bottom of this page. And then the idea would be all the cameras would be trucked and see the Hoyle Pond or will be trucked and process through this new service.

Okay. Just going on to Slide 8. We'll get to the next key development that exploration progress. And for all the production that we have and we're going to be adding -- this is -- we think it's one of the most compelling exploration stories in the industry as well. We issued a press release on April 23. That's our latest one. I'm not going to get into a lot of the details. Eric will get into the details of that release shortly. I'll just vary at a high level, say -- we continue to get very good results from resource conversion and extension drilling at Hoyle Pond and Pamour. We've been -- and included in that release was excellent results at a number of district targets near those operations and positive results at our near-term projects, specifically [indiscernible] and TVZ. And again, there's a lot more information that you'll be hearing very soon with that.

Slide 9 looks at our investment programs in the first quarter. Sustaining capital for the quarter was about $21 million, mainly related to capital development, mobile equipment and infrastructure investments at Hoyle Pond and Pamour and I'll mention we are very much on track with our capital development activity at those mines, also contributing with new mobile equipment at Pamour some investments at the TME 6 or a tailings facility project as well. staying capital was somewhat lower than we planned, which was primarily related to the shifting of delivery schedules for new mobile equipment to second quarter and just other quarters of the year.

Growth capital totaled $40 million investment in TMA 6, including our new acquisition strategy and pre-stripping at Pamour accounted for the vast majority of that. And again, pre-stripping at Pamour was very much in line with expectation. Just going to Slide 10. This gets to the operating results. During the first quarter, Alison will get into all the financial numbers. in a few minutes, and [indiscernible] will then add some additional color on operations as well. In our year-end results, we indicated that production in 2026 would be weighted to the second half of the year. and then Q1 would likely be our lowest quarter of production for the year. Well, production was 60.2000 ounces for the first quarter.

What I will say is I highlighted the quarter was Hoyle Pond. It had a very good quarter in Q1 with an average grade of seeding 12 grams per tonne. Also, our total mine tons increased by 4% and and we ended the quarter with stockpiles of close to 1.3 million tonnes, which will help us manage both our throughput levels and grades over the balance of the year. light production, our unit costs are expected to improve significantly in the second half of the year. One reason our guidance ranges were as wide as they are is because of the variability we saw coming in the quarter. And we'll say our ASIC number for the quarter was in line with our guidance, and we do expect that number to improve as we get into the second half of the year.

Going to Slide 11. It shows a visual of, well, done mill, but specifically in the foreground, the crushing circuit. As we mentioned, we expected quarterly production this year to be lowest in Q1 and a significant reason for that was mill throughput. We had 698,000 tons in the quarter. the reduction from the previous quarter, most of that was expected and expected reduction due to a scheduled downtime and our understanding of the implications of severe winter on our crushing plants at don't -- we've indicated since we announced the Porcupine deal beginning of last year that we were looking at replacing the 3-stage crushing system, but it needed to be replaced.

That's because it's inefficient and contributes to high unit cost because it's prone to breakdowns, particularly in winter conditions and ultimately, because we're going to need to move it to get it out of the way as we push back the Dome pit when we bring Dome mine into production. The longer-term solution for this is single stage crushing in a SAG mill, and that's part of our plans going forward in terms of achieving our growth targets. The near-term plan is that we are keeping increasing levels of critical spares on site and there is a newly designed secondary screening system that's going to be delivered at the end of June that will be installed during the scheduled shutdown in July. And these steps we're taking now are designed to help us when we get to next winter.

Just going on to Slide 12. This shows you our guidance, and I can say we remain on track to achieve all of our guidance for 2026. We completed the lowest quarter of the year. We expect to see significantly higher production, particularly in Q3 and Q4. An important contributor there will be Hollinger. We began ramping up Hollinger in Q1 and exited the quarter mining about 2,000 tonnes a day. We expect to get over 40,000 tonnes from Hollinger this year. There was only a few thousand in the first quarter. We also expect to see higher levels of mill throughput and supported by the large stockpiles I mentioned.

With that, I'll turn the call over to Alison White, our CFO, to look at the financial results.

Thank you, Mark, and good afternoon, everyone, on the call. On Slide 13, let's look at what a solid quarter and start we had in 2026, which reflects the continued momentum that we are building on from last year. We had robust revenues during Q1 of $285 million, an increase of 4% quarter-over-quarter, primarily reflecting the higher-than-average gold prices throughout the quarter.

We moved more tonnes during the quarter. And coupled with the number of ounces sold over the same period, cash cost per ounce were $1,417. As previously mentioned, unit costs are projected to be the highest in the first half of the year and are scheduled to improve during the second half of 2026 as production and sales volumes increase and benefits are realized from the investment to optimize the company's operations.

All-in sustaining costs averaged $2,041 per ounce sold, reflecting the higher operating cash cost per ounce sold, and is partially offset by lower spend from the sustaining capital during the period. The lower-than-planned sustaining capital is due to the delayed timing that Mark had mentioned earlier for the delivery of new mobile equipment and for construction work that's ongoing at the tailings TMA6 project.

EBITDA grew quarter-over-quarter to $178 million, an increase of 41% from Q4 2025, which is driven by an increase in revenue as gold prices climb. Discovery has continued to have progressively strong momentum since its transition to an operational company last year, continuing to grow EBITDA during each quarter of 2025 and now again in the first quarter of 2026.

We also continue the trend to generate solid free cash flow with adjusted free cash flow of $63 million, reflecting an adjustment of $87 million for our payment paid during the quarter to satisfy the company's 2025 income tax obligation.

Further, Discovery deployed $67 million in capital expenditures to further advance the asset base at Porcupine, continuing onwards with the vision and capital allocation plans of reinvesting in the business to add value.

Q1 2026 net income was $81.7 million, an increase of 25% from Q4 2025. And both earnings per share and adjusted earnings per share were $0.10. The increase in net income quarter-over-quarter resulted from the onetime $45 million reclamation expense for nonoperating mine sites that occurred in Q4 2025 as well as the benefit of higher revenue and lower depreciation and depletion expense during Q1 2026. Partially offsetting all of this was the impact of an income tax recovery of almost $5 million in Q4 2025 that was also offset by a $49.6 million of income tax expense in Q1 2026 for the current year and higher share-based compensation costs that also occurred during the quarter.

The income tax recovery in Q4 2025 resulted from the $40.9 million and a deferred tax recovery that was related to revised reclamation cash flow. And as we end on that tax note, let's move to Slide 14 to review financial metrics.

We continued to build on the momentum that began last year across all of our key financial metrics. Revenue and EBITDA have increased each of the last 4 quarters. And equally, through strong earnings generation, we continue to see positive momentum in our operating and free cash flow with Q1 adjusted operating cash flow of $130 million and adjusted free cash flow of $63 million that I mentioned previously. The positive free cash flow generation strengthens the company's balance sheet and allows for capital redeployment into the business.

So let's take a look at our liquidity position on the next slide, please. Discovery cash balance totaled $384.9 million at the end of the quarter. The stronger gold price environment translated into $130 million of adjusted operating cash flow, partially offset by the 2026 tax payments and continued capital investments that were covered this year.

Discovery's liquidity position remains robust. With $385 million in cash on hand and a $250 million revolving credit facility with a $100 million accordion feature, we have meaningful financial flexibility. We believe that this balance sheet strength gives us the foundation to advance our strategic priorities with confidence.

And with that, I'm going to pass it over to Pierre, our Chief Operating Officer.

Thank you. It is a pleasure to be presenting today. I will be speaking to Slide #16. During Q1, we produced 60,269 ounces of gold with total gold ore of 59,258 ounces. As Tony mentioned earlier, we expect production to ramp up, particularly in the second half of the year. The change in production in Q1 2026 versus the previous quarter reflected lower tonnes processed. The impact of this reduction was partially offset by a 15% improvement in the average grade, reflecting a significantly higher grade at Hoyle Pond and a higher average recovery rate.

More than 3/4 of the reduction in tonnes processed was planned and related to the scheduled maintenance as well as the impact of severe winter conditions on the crushing circuit. Company is currently advancing plans to replace the crushing circuit.

Total ore tonnes mined increased by 4% compared to Q4 2025, and we have close to 1.3 million tonnes of stockpile material that is available for processing at the end of Q1. Tony discussed the crushing circuit at the mill in his remarks. I'll point out that during operating days, the Dome Mill continues to show improved performance. Daily throughput at the mill exceeded 11,000 tonnes per day on 26 days in Q1, including 10 days when the mill exceeded the operating capacity of 12,000 tonnes per day.

Operating cash cost per ounce sold averaged $1,417 compared to $1,185 in the previous quarter, with the increase mainly reflecting the higher mining costs given the increased mining rate in Q1 2026 and the impact of lower gold sold.

Site level all-in sustaining costs averaged $1,875 per ounce sold, similar to the previous quarter as the impact of higher operating costs was partially offset by a reduction in sustaining capital expenditures.

I'll now turn the call over to Eric Kallio, Senior Vice President, Exploration.

Thank you, Pierre, and good afternoon, everyone. I'm on Slide 17. Before starting, I just like to say, it's been another great quarter for exploration, another 67,000 meters drilled, excellent success with both operating mines and growth projects. So with this in mind, we have, again, a lot of new information, but my plan today is just go through some of the highlights, starting with the current slide at Hoyle Pond.

As shown on the slide, which is a long section looking south, work at the mine continues to focus on the lower S Zone, included another 5 holes near the lower limit of the current resource with very positive results. We have several holes containing visible gold and high grade directly down plunge to the deposit to the east and others indicating potential new high-grade lenses to the west.

Considering above, we're very happy with progress here so far. We plan to keep these 2 to 3 rigs active here in the near term, plus also integrating another 2 to 3 rigs in the mid- to upper part of the mine to start advancing those projects as well.

Turning to the next slide, which is #18. You see the TVZ area, which is another important drilled project for us in Q1. As mentioned in the past, TVZ is a significant zone of mineralization in the southeast part of the Hoyle Pond mine that was partially drilled and defined by past operators, but we are now back adding more holes to support a maiden resource estimate for later this year. With that in mind, what we see here on the slide is an overall view of the target area, including the main zones, drill platforms and even the workings from Hoyle Pond mine.

Just slightly on the main target here a bit. What we're looking at is essentially a large Northeast plunging structure, which is based on drilling to date extending from at least the 850 to the 1680 levels and remaining open in both directions. Internally, the zone consists of a series of lenses, which we show here in various colors, the largest being the TVZ 2, which is a large green one sitting on the south side of the zone and the remainder being clay bins, which sit immediate to the north.

And then in terms of drill platforms, just to point out that the project already has a number of areas with drill platforms has been set up from past work, and these can be activated fairly quickly, but just a little bit of work. Aside from that, all of our new drilling has actually been from just the 1210 and 1680 levels, and then we'll be shortly starting from 1410 as well.

Turning on to my next slide, #19, we see a more detailed view of the zone in long section, including recent drill results that has indicated it's all looking good so far. In terms of 1210, which is in the upper right-hand side of the slide, we had multiple new holes with wide high-grade intercepts nearby to our first hole that we announced in Q1 and on 1680, several more, which intersected attractive grades and widths near the lower limits of past drilling.

Just to give you a flavor for what we're seeing, intersections on 1210, we're including numbers sections 4.23 over 55, 6.41 over 11, 5.18 over 9.1. And then intersections from 1680, such as 4.32 over 19, 4.24 over 10, and 4.73 over 6. Important to note is that all of these intersections are similar or better to other previously drilled holes in both areas and the drilling below the 16 level is still very limited.

Given the above, we're very happy with progress so far. The program's continuing with 3 drills active on 1210, 1680, and 1410 levels. We expect to see a lot of additional new results from the upper and lower parts of the zone very shortly.

We're also starting on rehab of new port platform on the 1430 level and the 900, which will provide even more platforms as the year progresses.

Returning on to the next slide, which is #20, we see the Owl Creek area, where we completed another 12 holes near the historic pit, as well as at the 750 zone, which is 750 meters to the east. Indicated here, drilling near the historic pit included 8 new holes resurfaced from the 650-meter level with very encouraging values, multiple holes intersecting wide, high-grade zones near the east side and another continuing to enlarge the overall footprint to the west.

Key intercepts to the east confirming the wide of higher-grade zone include values such as 4.11 over 30, 9 over 3, 5.24 over 10, 4 over 13.8. And the key intercepts to the west includes 4.5/2.2.

Drillings at the 750 zone includes 1 new hole, which is designed to confirm and extend mineralization near the 250 level and at the lower limits of historic drilling and was also very successful with an intercept of 5.76 over 4.5, 2.57 over 8 9. Given the above, we continue to be very pleased with progress of the project to date and plan to continue with 2 drills for the near term.

Then turning to Slide 21, we see an overall view of the Borden Mine, where we added another 24 holes in the northeast portion of the mine. We're showing here the focus for current work continuing to be on the main zone, which is the farthest target on the east part of -- right-hand part of the slide. All drilling being done from the 585 drift, testing mostly down plunge northeast of the mine workings.

Additionally, we also saw drilling start on the lower part of the East Lower Zone or ELZ, which is another mineralized structure with similarities to the main zone 500 meters to the west. Important to note that both zones still have limited drilling down plunge and remain open for expansion.

So yes, I'm not going to go into a lot of details here in terms of the results. They're well summarized in our press release, but I guess I could just mention that we continue to have a lot of success here with the drilling, getting very good grades and widths in both areas, both inside and outside resources. Also very optimistic about the future of the site.

Then turning to Slide 22, we have the Pamour, where we completed another 67 holes near the current open pit resource, as well as Pamour West, 1.5 kilometers to the west, and the North Contact Zone, north of the phase 2 pit. Drilling near the open pit included 6 new holes designed to upgrade and expand resources, and that's what Q4 results were easily meeting expectations with multiple highlights from all areas. Drilling at Pamour West with another 6 holes found in the historic mine at the Broulan property. And as of Q4, also continued to intersect very nice values along strike of Pamour and a similar geologic setting.

Then drilling at the North Contact Zone included 5 new holes to test the major east-west contact north of the Pamour pit and also started to show very positive results. Important to note that none of the material from Pamour West or North Contact area is included in the current resource estimate, and we'll be working hard to incorporate this in our next update later this year. The program's continuing with 4 drills, 2 focused on extensions of Pamour pit, 1 at Pamour West and 1 at the North Contact.

Then going on to Slide 23, we see the Dome, where we had continuation of drilling in preparation for the new resource estimate later this year. As indicated on the image, the vast majority of new drilling targets the northeast part of the resource pit but also included final holes from the area to the southwest. Drilling in the northeast area included 10 holes to evaluate mineralization on the Dome Fault, near the lower portions of the current resource, very successful, indicating close correlation of geology, similar better grades and width to the historic holes, which were drilled mostly before 1970.

Drilling to the southwest included 4 holes to test the exploration target to the south of the current open pit as the Q4 continued to identify new growth opportunities for future expansion. Drilling at the site's continuing with 2 rigs, both now located on the north side of the pit. Considering results and progress to date, the project remains on track for a new resource estimate by the end of 2026. So in summary, things continue well, and lots more to come.

So with that, we'll pass over to José Jabalera, Senior VP Corporate Affairs and Sustainability in Mexico.

Thank you, Eric. Hi, everyone. In Cordero, in Mexico, we continue to advancing the project. Now in that advancing, we are including the studies on water and power in that. And also after the last event or the flood in Mexico, event with the president when she announced incentives on the investment, we got meetings with senior Mexican authorities, and that comes for they scheduled a site visit at the project to go in the final process of the evaluation for our MIA. So we will have that visit on the next week to continue advancing on the processing of the permits for SEMARNAT.

So with that, I pass the words to our CEO, Tony Makuch.

Okay. Thanks, José. Thanks, everybody, for the presentation. We had a fairly solid quarter. It was a quarter where really our mines definitely outperformed the mill in terms of throughput. The mill had some challenges in terms of weather, but as we're moving on, we're working at having these things corrected, and we expect to have really solid processing results as the year goes on. And really want to thank the hard work of all the people in the company that did the ones that did all the work and got all the success of the year. We really appreciate that.

And then to wrap up on the other side, you can see from exploration and a few other things, we had some significant developments in the first quarter that supports our growth objective. The acquisition of Kidd is one really important value driver for the company and one of our -- there's a lot of synergies and a lot of value in terms of what we inherited from -- with Kidd and then take advantage here. The main thing is the unlocking of processing capacity. You can see when I try to show you somewhere between 7 million and 9 million tonnes of new processing capacity, that can be unlocked with that and you just do the math yourself in terms of when we talk about where we think that it can go.

We have lots of resources if Eric still give us continued exploration success and there's still a lot of gold left around Timmins and some of these are, they're right within existing operating mines and on operating infrastructure. We continue to invest and we invest properly in terms of building the value. And like I said, as Mark talked about, we -- our growth objective to reach over 0.5 million ounces of gold production, then if you do the math, and you can see we have significant plans in place and we expect to even somewhat exceed that.

Anyway, with that, maybe I'll just thank everybody for participating in the call and be happy to take any questions.

[Operator Instructions] Your first question comes from Larry Liu with CIBC. Your line is open.

I guess I'll start off my first question by asking about Kidd Creek. Would you mind reminding us what are some of the opportunities you see here? Does the acquisition of Kidd Creek change the way we should look at the near-term mine plan, as well as can you also remind us what are some of the steps between now to closing our transaction in Q1?

Well, I think it's the first thing in terms of the acquisition of Kidd, we -- the mine's still operating. We do expect the mine to operate there and continue to produce the ores, definitely for the rest of this year. We're working hard in terms of what can be done there and done safely and effectively. I think that's somewhat of an opportunity. There's significant exploration lands acquired here, and I mean that's really part of a long-term exploration program. But if I can, going to Slide 7, where I tried to show the biggest part here is unlocking the value of on the metallurgical site.

What that brings to us in terms of adding mill capacity, we do with very minimal capital investment. We can process the Borden ores at the Kidd met site at the C division. We're looking to process refractory gold ores such as TVZ in the D circuit. Again, these aren't significant capital expenditures for here, and they're not necessarily significant time, too. So we expect that things go properly. We're doing some test work right now and working on firming that it could be between September and March of -- September of this year and March of next year that we could be actually processing more Borden ores here.

So that unlocks 2,000 tonnes 3,000 tonnes a day capacity at the Dome Mill pretty quickly for the gold ores. We mentioned about -- Mark mentioned about the significant amount of stockpiles we have on surface as we're building stockpiles from mining. So there's a lot of opportunity there. And the big part is we're going to be starting the engineering now and working on what we need to do to build a whole new mill circuit at Pamour -- sorry, at Kidd to treat the Pamour ores, and that's a 5 million to 7 million tonne a year conventional gold circuit.

One of the really advantages here with this, you have a brownfield site where you have over 100 megawatt of power already. We have all the water we need. We have a site, a cleared site with actual concrete foundations in place, not the final foundations for all of what we do, but definitely an area that was used in the past for metallurgical work that we can go in here, build a -- put a coarse ore bin in, put a primary crusher, a SAG mill, and then can grade that, like say, a 5 million to 7 million tonne a year gold circuit to process all the Pamour ores and really unlock the value then of Dome Mill.

Think about it. It gives us somewhere between 7 million and 9 million tonnes a year of processing capacity between 6 months from now, going from 6 months from now to 3 years from now. We see the opportunity here. And that's the main part.

In terms of closing, I mean, things are working well. We're working towards some final transfers or closing plans, et cetera, with the provincial government. And we're kind of thinking we're going to have this thing closed before the end of the month, but there's always something that can happen. But we're I think we're pretty much dotting the Is and crossing the Ts as we speak.

Yes, for sure. I guess kind of a follow-up here on Kidd Creek, not diving too deep as well, how are you comfortable adding copper, zinc, and silver to your portfolio? Should -- would this be a good experience for having some processing base metal capacity from Cordero potentially in the future?

Yes. I mean as part of this, we have the offtake in place with Glencore and pretty much the offtake terms are not really much different than the offtake terms that they provided to their own Kidd site itself. And it gives us that lead in terms of working. So It's a going concern business. It's producing 3,000 tonnes per day, or it's running at a 1.2 million tonne a year capacity currently, and it will continue on that for the rest of this year.

We still have to get work with them on plans once we take over. So the operation will continue to produce a copper concentrate and a zinc concentrate. The copper concentrate goes to the Horne Smelter. The zinc concentrate goes to Quebec -- to Montreal, and that goes in place. And we have that agreement in place with Glencore, and it's great learning capacity for what we would do as we advance Cordero as well.

Perfect. Sounds good. And sorry, if I can, Alison, I do apologize in advance. This is going to be a tax question. So if I look at this quarter's free cash flow, before being adjusted, a large item would be the taxes paid for last year from Porcupine taxes. So going forward, should we expect more of a monthly installment? Or how should we look at taxes, cash taxes being paid going forward?

Larry, you're exactly right. First of all, thanks for the question. Taxes are never anybody's favorite topic to talk about, so you're brave to ask it. But nevertheless, yes, you're right, and we will be, and we are paying monthly installments in 2026. The onetime event for 2025 payment was largely just because last year was our first partial year of operation.

Your next question comes from John Tumazos with Very Independent Research.

I'm trying to envision or anticipate the fourth quarter technical study. The January study last year described resources of 4 deposits and production from 3 of them. Based on the drilling results, will we have resources from 4 more deposits, TVZ, Owl Creek, if you're taking material from Hollinger? And now we've acquired Kidd Creek. So will the new report describe 8 distinct resources and envision production from all 8 of them?

Well, that's a good question. Eric, you can chime in. Some of that really, you're not offline.

Yes, well say we have the 3 main ones, which are the operations for the -- we'll be doing update on those, and then we've got Dome and TVZ. That's the base plan for sure. I mean we've had the results at Owl Creek, like you say. We see if we have enough drilling to do a resource there by year-end, but really, it's be those 5 that we're aiming for at year-end.

You do have, we do have Hollinger that we could discuss or include and there will be some things out of Kidd, but we're still working on Kidd whether that's part of our -- by the way, we will give something out of Kidd, but it might be part of a separate report there, John.

Is the 131 million tonnes that Glencore reported for Kidd good enough to meet your standards?

I mean, it was, okay. I'm not sure if it was quite that number. But yes, I mean, the level of drilling and the level of quality of workmanship, we're not questioning that at all. Eric?

I mean we didn't do 43-101 report. That's a JORC report. We know that was done in the past. But I mean the drillings have been always done to a measured and indicated standard for the mining site areas really where most of the resources is in the deep part of the mine. So really -- which they could be added to the resources, but it's really not because of the quality of definition of the drilling that they're not putting it in. They have uncertainties with other parts of the mining approach.

Just want to make sure I heard you right, Eric. Did you say that there'll be a resource for Hollinger or Owl Creek or not?

Right now, we don't have plans to do it, but depending on how the drilling goes, we could do one.

That's Owl Creek you're talking about?

Owl Creek, yes.

If you're taking material from Hollinger, do you have resources without drilling them based on earlier data since you're putting ore through the mill?

The ore we're taking, this is broken ore, so it's within the mine.

Yes, there is material at Hollinger. And it's a valid point that the material at Hollinger we're mining, that was part of a historic resource or a resource from the previous operators. And it's work -- we're doing, and something we're considering, but it may be more work, John, for 2027, only because in terms of the level of drilling and the stuff, other work we needed to do to verify to complete a 43-101 level report. It may be more roll into 2027 for Hollinger. But it is one of the key areas and a lot of potential for sizable resource there.

If I can ask one more, when do you expect to have the single stage crusher at the Dome Mill and where will you put it? Will it be away from the existing mill site in case a decade from now you move the mill site?

What we're looking at doing, John, is right now in terms of the primary crusher, what we're looking at doing is either getting some -- putting an ore bin at site and in a short to bring new ore at site, the new ore bin and truck dump at site and do fine crushing, bring crushed material from Pamour, put primary crushing at site. That's one alternative. Second alternative would be to put that there. But we're just working on now. There's some work in the back. If I had a drawing up, I'd show you.

There's work in the back that's around the secondary and tertiary crushing plant and going into the tailings where we would excavate some -- doing some foundation work where we would put it right now. That would be the first phase of what we do at the Dome Mill. And yes, I mean, the reality is we could keep the mill where it is, have a variation of crushing there and continue to run that we can run the Dome pit for anywhere from, depending on throughput rate that we want to mine at, for 10 to 15 years before we even have to move and replace the mill at that Dome.

Your next question comes from Ken Ilodibe with SCP Resource Finance.

Just congrats on the quarter. Well, just switching gears to operations. So you've talked about production and costs improving through H2 as I guess throughput and mining rates ramp up. So my question is, what are the main things that we should be watching over the next couple of quarters to see if the ramp-up is progressing as expected? And maybe just broadly, are you seeing anything so far in April into May from an operational standpoint that gives you confidence in this ramp-up?

Yes, just want to make sure I understood your question. You want to know what we're going to watch for this year and how we're doing in Q2, correct?

Yes.

Right. So of the 4 sources, we don't report separately, as you know, so I'll be kind of speaking in general terms. I would say to you that our mining rates are progressing really well. We don't foresee any issues here at any of our operations. Of course, as Tony alluded earlier, grades do fluctuate up and down, mostly due to sequencing and some adjustment with block models that we're doing throughout the year. So with that -- on that aspect, Ken, I don't anticipate any issues delivering material to the mill, whether it's Q2, Q3, or Q4.

In terms of processing capacity, we did allude to the fact that we had a few mechanical issues in Q1. And I just want to bring to your attention and others' attention that if you compare what we did process in Q1 of 2026, which was about 7,700 tonnes per day and you compare that to the previous operator, which in Q1 2025, they processed around 4,800 tonnes per day, you can see that we have put in place some improvements already.

So later this year, some of the mechanical parts, secondary screens, to name it, is going to be replaced. So that's going to increase the availability of the process plant. And as I did mention earlier, we did exceed the nameplate capacity of 12,000 tonnes per day in Q1. We're going to work towards exceeding that 12,000 tonnes per day in the rest of the year.

And alluding to that then, the real two primary key indicators if you want to watch for how we're achieving the ramp up, one would be daily mill throughput as you see the mill producing, processing more on a day-to-day basis, going from average 10,000 tonnes a day to 10,500 tonnes to 11,000 tonnes a day or whatever. Second part is our quarterly production of gold. And those are the 2 main drivers that right now, if you want, so you watch.

Okay. So Is it fair to say that, I guess, in the long term, you're working on a single stage crusher replacement, but then in the shorter term, you are confident in the reliability of what you have right now?

Well, in the short term, what we need to do is get plant reliability, and the biggest part is the screen, the screens on the secondary screens. That's what's been causing some of the trouble. There's lots of areas within the plant. So in the short term, it's reliability on our secondary and tertiary crushing circuit, mostly the screens that's provided your sizing and the material before you go to refine ore bin. So that's critical in the short term.

A longer-term processing is movement of the actual primary crusher to a different location and working on other areas. A much longer-term thing is to replace the 3-stage crushing circuit with a primary crusher and a SAG mill. That's up for Dome. And then the other aspects now, what we're doing with the Kidd Met Site, we have a number of initiatives there now.

One initiative is to get a Borden ore to that, to that through the C circuit and open up capacity for -- that gives us like 700,000 to 1 million tonnes a year of new capacity at the Dome Mill because we're processing it at the Kidd Met Site.

Second part is what we're going to do to build a new 5 million to 7 million tonne a year conventional gold circuit at the Kidd Met Site, and the work we're going to do on that. And then the third part is the refractory gold circuit now that we're going to be able to work with at the Kidd Met Site. Our -- like Eric can go through, you can see what our resources come out at.

If we just look at the resources at Pamour, Hoyle Pond, Borden, and Dome, we had well over 15 million ounces of resources. And you should be able to -- I don't know you don't want to mine that over 30 years. We should be able to mine that faster. So the first part, without adding any exploration success, we need mill capacity, so that's a big value driver.

Second part is you can see, Eric, it, and all the exploration success we're having. So definitely we need more mill capacity, and then we can become more discernible in terms of -- as Pierre said, we focus on higher grade and proper margin as we understand all the different deposits. We have the potential to build a lot of new mines here and with that the mill capacity, and those are the things we're working on, right?

Maybe just to reiterate, this is to tell you that, by the way, when we talk about mill capacity, we're not building new mills. We're in brownfield permitted sites. We're just modifying plant site. We don't have to bring in power. We don't have to bring in water systems. We don't have to build substantial new foundations. We got actually existing tailings areas. We just have to modify permits on. So we're working on and within existing operations to grow this stuff. We're not going to greenfield building brand-new permitting, brand-new processing operations. Sorry. Carry on.

This concludes the question and answer session. I will turn the call to Mark Utting for closing remarks.

Thanks very much. And again, just want to thank everyone for taking part in the call. As you've heard, to say the least, we have a lot going on. We're making a lot of progress, and there's a lot more to come. And that's good for a bunch of reasons, one of which is we will definitely have a lot more to talk about when we have our next quarterly call. So we look forward to speaking with you then. Enjoy the rest of your day. Thank you.

This concludes today's conference call. Thank you for joining. You may now disconnect.

These things work better when you turn them on apparently. Welcome to our Investor Day. We really value the opportunity to meet with the investment community, particularly during PDAC. And last year, we had a lot to talk about, but we should have ended it by saying stay tuned because this year, boy, do we have a lot to talk about. As we go through the presentation, you'll notice, I think, some things become very clear. One is this is a team of people that are very committed to mining in Timmins, Shefflo and all of Northern Ontario. We believe that there's really no better place in the world to do our business than in that area. And we're very appreciative that the support that we're seeing from government and particularly the Ontario government, not just for critical minerals for all mining. And on that front, I know there's a lot of talk about the ring of fire, and I'm sure it will be an unqualified success eventually, but we like to think that there's already a ring of fire in the province, and that's the Timmins camp in Northern Ontario.

Our other business is Cordero. Cordero has always had an element of politics around it, but we think that's going to come to an end very quickly. And what we see with Cordero is a mine that's going to be able to help be part of the solution to the world's need for silver for things like energy transition, solar, electric batteries, water purification, things the world needs. And I'll tell you, I talk about our commitment to Northern Ontario. We're absolutely committed to making Cordero a shining example of how you can responsibly build and operate a large-scale open pit for the benefit of the people of the world. So we're going to talk about all of that today, and this is how we'll roll out the session. We're going to do a presentation that will be followed by Q&A. And then afterwards, there will be a light lunch outside.

The speakers today, firstly, will be Tony Makuch, our President and CEO. And I can tell you that I'm personally, and I think we, as a team, are all very proud that Tony last week was named Kitco's CEO of the Year. And I think you'll agree it was very deserving. So -- then we'll have Alison White give a financial review, largely reviewing our guidance. Eric Kallio, over here is our Senior Vice President, Exploration. I always tempted to call Eric a rock star because he's always finding rocks that we create a lot of value from. He's got a large program he's executing along with his team, about 280,000 meters of drilling, and you're going to hear all about it. And then Forbes Gemmell, our Executive Vice President, Business Development and Growth, will talk about Cordero, and he'll give you a sense post EMEA approval, what things look like in terms of moving forward.

I need to show you the obligatory forward-looking information slides. We will be making a lot of forward-looking statements. We think you deserve to know what vision we have, what's driving us every day when we come to work. So please -- these are all available on the website. And this is our other cautionary language slide, deals with issues like resources and reserve cautionary language as well as non-IFRS measures. And again, you've, I'm sure, seen all this before, so please give that due consideration. And with that, I'd like to introduce Tony Makuch, our CEO.

Thanks, Mark. Anyway, one thing, guys, I know they got we got to look that way, but this presentation this way is kind of awkward a little bit, but maybe it's like a union negotiation, you got. Anyway, yes, no, and it's been definitely a good year. And I know we talk about accolades and stuff, but we can sit and say Discovery is a company of the year and a lot of really good people. We've gone from maybe 6 or 8 people that were Discovery Silver in last year at this time to 1000, 1,500 and look at what we're doing with kid will be over 2,000 people in short order and growing in the right way in terms of what we want to accomplish. So anyway, yes, I know we've had these before. We -- last year or 2 years ago, we were talking about a great feasibility study and a great project in Cordero. And we are committed to Cordero and we can really work there and demonstrate responsible development and how we can build in terms of what we business. I come from this industry.

I was -- and when a lot of people say things bad about the mining industry, in the end, we're -- and I can't say we're the good guys, we're the good guys and girls, right? We do a lot of the right things. And I think as we progress even in terms of what we're doing here in Timmins and at Cordero as we move forward, we can really demonstrate a lot of leadership in the industry and really maybe the next 40 years, people will want mines. They'll be calling everybody up. I always sit to say some of the best thing to do is you have a community call you up and say, "Hey, can you come and build a mine beside us because we want you guys and we want your people here and what you bring". Anyway, before I get into a lot of stuff for what we're doing in Porcupine and a big part and what we're doing within Discovery, but a big part of that, we just -- we've been working a long time on this.

Some people here probably aren't surprised to finally hear or aren't -- don't have to read the press release to talk about the benefits of what comes from us picking up kid because I think we've talked about it for a number of years and been working on it for quite some time. And I think it's definitely a lot of synergies. And a big part of it was -- you can sit there and say there's really 3 things. The main driver was when we talk about Porcupine, the ability to expand Porcupine and really to do what we want to do on the gold side, growers we need mill capacity. You just happen to have a state-of-the-art. I mean, Texas Gulf Limited, who built the Kidd Creek met site in 1960s, they were state-of-the-art then, and it's been built well and it's been looked after extremely well by all the people and so we picked up really a world-class facility here. We're going to have to convert it.

We're going to have to make some changes and invest in it and convert it to a gold circuit. But it unlocks a lot of value in Porcupine for us. And really, that's the main driver of the acquisition to get this mill. And oh, by the way, somebody is sort of like when we were started Lakeshore and we were trying -- we bought the Bell Creek mill and Goldcorp said, you know what, we got this Bell Creek mine, we'll throw it in, right? You might as well take it because it's -- we don't need it. So somebody threw in the Kidd Creek mine, and they threw in all this exploration ground. So I know Mark talked about our exploration and talk about Eric and [Karen] and yes, we've got a big exploration program in Porcupine at over CAD 90 million almost this year. Well, we just picked up a whole bunch of highly prospective exploration ground as well.

So we're probably going to -- you're at the PDAC used to be a place where when we were students, everybody would come here looking for jobs. And hopefully, there are some students looking for jobs because we've got a lot of work for geologists. But anyway, it's a large land package. You can see where it is a big part of the benefit in terms of -- sorry, you can see the size of the land package and unexplored land package in the region and Kidd mine it being one of the largest base -- volcanogenic massive sulfide deposits in the world over about 177 million tonnes mined to date and still another -- well, they're still down at depth, there's still almost 30 million tonnes there. that it's whether you want to go deeper at it and all that stuff. And definitely, there's that, plus there's some significant exploration upside.

But in terms of us, as we talked about it, in terms of our -- being able to increase production capacity from a milling point of view, we can basically -- it gives us the ability to develop Dome now and have one mill for Dome mill here. And eventually, over time, we can develop TBZ, we can do a lot of things. We have infrastructure here that we need to support the underground like the Hoyle Pond mine goes underneath the Kid met site. So we have the mining rights, but we don't have the surface rights. But now with this acquisition, we have the surface rights. So now we can bring vent raises and shafts to surface if we need them. We also have access to water where you need process water from mine, you got to have access to power. We need power to increase ventilation to increase. So you have access to all -- a lot of the utilities that we were short of and we would have had to go out and get.

And we haven't closed the deal yet, but you can talk about what we paid for it, and it will be sort of a lot similar to what we did when we discovered Porcupine and I'll go back to what Eric Sprott would always say to me was you got to steal value. And we'll leave it on the table for a while and people will think, well, did Glencore get a better deal or did we steal something from Glencore. But it's going to be up to us to make it work. Yes, there's production here. And the one thing I think that the value that we should really talk about is the people. I mean you have access to a large skilled workforce, well trained, a variety of trades and all the disciplines we need for our industry and a lot of processes, management and operating systems that we pick up that we can really mature our company, the company now with the infrastructure here. And we're not just going to take this, and this is where you're going to tell these people what they do.

They're going to come in and mesh, we're going to make a much better company with the people we're picking up from Kidd. I can go through the terms, people can read this all, but some -- there -- sorry, I mean, I think from our perspective, and I think it's a win-win from our perspective and definitely a win, I think, for Glencore. But we'll find out -- find out over time that we're the ones who really won more, right? And going back to what we're trying to do with discovery and what we see out of Porcupine and even the company, right? Where is the company going to go over the next few years? Like we had our technical report. We do have to do a lot of work and deliver a lot of studies over the next while in terms of advancing within our technical report to support that. We indicated that, that was a baseline. So part of it is increasing production, lowering cost from that [indiscernible] stuff.

But really, the big thing is we feel very strong we can grow this to 0.5 million to 750,000 ounces a year production. It's not because we don't have the resources or the minerals and the gold in Timmins to do that. We didn't have the milling capacity. So the first thing, again, as we talk about with the Kidd acquisition, now we -- you can see now there's a path we have a spot where we can build that capacity. And if we get Cordero permitted, which all the -- it's all positive in terms of that. Maybe there's some administrative things that need to be eyes dotted and crossed. But you can look at over the next 3 to 5 years where this company is going to be producing somewhere over 0.5 million ounces or more than doubling, almost tripling current production, plus producing 14 million ounces of silver, plus now potentially producing 40 million pounds of copper, 80 million pounds of zinc and another 3 million or 4 million ounces of silver. Actually, there was a period of time when Kidd was producing over 10 million ounces of silver a year. during its production. So there's a lot of upside there in terms of productivity.

But I mean, in terms of what we're trying to do and how we want to create value for shareholders, it's not just about growing production. That's not -- in the end, we've got to improve productivity. We've got to invest in the business. We want to lower cost. We want to get our cost to the lower half of the cost curve. We want to be able to -- although we got $5,000 gold or $5,300 gold and $90 silver, I mean, I don't know, I'm old enough to have seen both all different sides of this. And we got to plan for a different number, right? And so we got to be as efficient as we can be in our operations. And that's part of what our goal is in terms of investing in the business. and investing through exploration, diamond drilling. We've got to invest in equipment that we need and infrastructure for the mines to lower costs and just improve productivity. We got to invest in people. We got to invest.

We got to train and develop and we got to recruit people, and we got to bring on a new generation of people for this industry because we're building a mining center in Porcupine and Cordero that's multigenerational, right? We're setting up here a 20- to 40-year plan. We got to need people that recognize and attract people and develop people and create that whole succession plan. So we need to work in all aspects. We need partners in colleges and universities as much as we need partners throughout the industry. And I think the one thing, and I'll let Eric talk about it, in terms of Timmins or in terms of Porcupine, you've got 110, 120 years now of gold mining going on in Timmins. You've had 60 million -- 60 years, sorry, of the kidd mine. What if you find some brand-new deposits in all this period of time. And I mean, that could be the exciting part of what we're trying to do.

So not only are we're going to build the 0.5 million ounce plus, we're going to bring it down to be low cost, not are we going to be able to bring on new silver mines and bring on -- look at extending base metal mining in Timmins. We got the chance to find a lot of new deposits and build some more new gold mines after all this period of time. So it's going to be our energy. It's going to be our what we can bring to the table. And I think there's a lot of opportunity there. Maybe I'm talking too much about 1 or 2 slides here, but this is just showing where we are for people who don't know who we are. I think everybody knows where we are. This is a slide we put together to talk about valuation, right? What are we valued at today versus what we could be valued at. When we look at just looking at where prices are -- metals are today and what we're currently doing just in our technical report and just in our feasibility study for Cordero, you can sit there, you can find $11 billion of value.

But we're going to -- we're increasing production and lowering costs at Hoyle Pond and Borden. We can bring Dome on to production. We can bring TVZ on to production. We can bring -- we got all kinds of exploration upside, and we don't have and now we have kidd, right? Now you can see the part of the path, not only there a path to being able to achieve the concept we talk about in terms of growing production, growing mill capacity, but now you can see some other new value-creating opportunity that's going to be here. So we think we've got an exciting thing going on here. And as talked to Murray, John, we said you never would have expected that we got a chance to own the Porcupine gold camp, it's like you can go to, I don't know, pick a spot. You can go to Chile and you can own all the copper deposits or you can go to Western Australia, you go to Kalgoorlie and you own everything. You can go to South Africa and own a large part of the Bushveld.

We have some -- just -- it's here. And the other part of it, though, is we can go to Porcupine and do this. Most of us, we just have a lot of knowledge on having worked there in various stages in the company. So we also have people that we can hit the ground running and know where we want to go. And we understand the language, we understand the economy, we understand the people, we know what needs to be done. So this is -- I mean, this slide is here. I mean again, I want to -- and I know we had some meetings even last week when some people had BMO people are talking about you're investing all this capital, why are you investing? Why is capital up? First and foremost, I want to -- we've been saying this for discovery, first off, our goal here is to invest and build. We're not here about -- this is not a dividend story. This is not a share buyback story.

We're not -- our return to shareholders is us creating -- improving the value of the company, right? That's the return we're looking to build. And this is a PEA, right, which shows, again, the biggest thing is we show production going up and costs coming down. We already come this year, we said instead of 300,000 ounces in 2028, we're expecting to do that in 2026, right? So we want to move the production forward this way. right? We want to -- we're going to grow production this way. And we got Dome, TBZ, we've got -- and we've got other things. But we also don't want to just do that. We want to lower costs, right? And we're looking at lowering cash costs, lowering all-in sustaining costs. So we need -- part of it is we always need to invest in sustaining capital because that's part of -- that's responsible mining in terms of what we're trying to do here. So I mean that's -- so when you look at that, that's going to be value creation, and that's what's really going to get us up there in terms of size.

I mean I can talk about this with this slide, but it's really just talking about our -- the 4 operations that we're on now. We are going to start -- we are working on the Hollinger open pit this year, and we will do some more with it next year. And there's a lot of upside here. Hollinger is something that could be it could be -- it's a game changer again. That was -- if I were to show you the map of Timmins and Timmins always talks about itself as being the city with the heart of gold, that's the heart, right? So you don't know what you're going to find at Hollinger once we get at it. This is -- don't open pit. I'll let Eric and others talk about this more. And the TBZ deposit, which is a refractory gold deposit, which by having the Kidd Met site now, which having a flotation circuit, we can -- and by having a partnership with Glencore, which is not committed, but now we have a path to take this from drilling and concept right through the commercial production and actually right through commercializing and selling -- being able to get gold with what we've done now with Kidd Creek, et cetera.

So I think there's a lot of excitement there in terms of building new mines and -- this slide is really talking about a lot of things we're going to try to -- we got to do this year in exploration, production growth. We've got a lot of studies. We've got to deliver a lot of things to our shareholders, to everybody this year. We got the Cordero feasibility study want to upgrade capital costs, et cetera. And a big goal is -- I know we only give 1-year guidance this year. As we come into next year, we recognize we've got to give -- start giving 3-year, 5-year guidance. We can -- there's a lot of concepts here, but we're doing a lot of work over the next while to really mature the company and get it set up for our people. So I think with that, maybe I'll leave it up to Allison to go through the financials and maybe provide a lot of the interest on the real interest in terms of what we're all about...

All right. Thank you, Tony. So similar to what Tony has mentioned during all of his comments, we, first of all, really closed out our 2025 in a strong position. We consistently met all of our commitments and really feel like we've started to build ourselves a solid foundation for the future, which allows us to be in the position that we're in today and make some of the announcements that we made earlier this morning. Importantly, we generated significant free cash flow, both for the year and in Q4 of 2025 with free cash flow of $172 million over the year and $68 million during Q4. We continue to see operational momentum that we believe will project us into 2026 and allow us to deliver strongly and deliver on our commitments on a go-forward basis as well. So let's look at what our guidance looks like for 2026 and focus more on the future than the past.

Alison, there's one point. In 8 months, we paid [indiscernible].

We did.

So in terms of -- with the value back to the country and the people, we paid back in the first year.

And I would add that, that was really in 2.5 quarters. So we'll see what 2026 brings us, which should be exciting. So in 2026, Tony talked also a lot about creating value for our shareholders. And it does start with showing what we believe is solid production results from 260,000 to 300,000 ounces for the year. This is growth from our PEA case that we had originally published at the time of the Porcupine acquisition. And 2026 will also be a significant year of investment. We have $120 million to $165 million in sustaining capital and $195 million and $235 million in growth capital, both at Porcupine. A lot of that spend will go towards the mill, the purchase of new mobile equipment and some capital development on the sustaining side. And on the growth side, we'll be adding some additional tailings capacity. and improving ventilation as well as continuing our pre-stripping at Pamour, our open pit mine that we're working to bring into commercial production in 2027.

The $90 million to $100 million that we're showing for Cordero is largely made up of the land use fee, which is $70 million to $80 million of the amount that's shown there for Cordero. The land use fee is expected to be received after the receipt of the EMEA permit, which is the environmental permit that's currently pending. The land use fee is effectively a zoning change on behalf of the organization, which will allow us to then subsequently begin mining after a construction decision. We have a significant increase in our exploration budget, much to Tony's comments earlier. We are intending to spend $55 million to $75 million this year. And Eric and his team have a lot ahead of them with 280,000 meters of drilling that's planned for 2026. So a lot of meters. Eric is going to get into that later, and I'll let him touch on what those individual items and areas are that they're going to be focusing on. But let's look at unit costs. Tony talked a little bit about how we want to reduce our unit costs on a go-forward basis.

And unit costs in 2026 are intended to range from $19.50 to $22.50 for ASC and improve as the year progresses. That's largely because our production profile is back half weighted, and we are anticipating that a lot of our sustaining capital as we continue out of our 2025 momentum, our sustaining capital will be in the first part of the year and then our individual unit costs will come down as the year progresses when the amount of production comes into play. And so we anticipate that we'll be likely at the top end of our ranges in the first couple of quarters of 2026 and then be towards the middle or the lower end of our ranges. Our ranges are a little bit wide this year, which you may have noticed on the guidance slide, and that was purposeful given that we have this significant improvement in trajectory throughout 2026. So let's look a little bit more at our capital spend, and this is largely because we do have significant investment that we're making in 2026 for both our sustaining and growth capital.

Over 75% of our capital is dedicated to replacing our trucks and mobile fleet and for our capital development at the underground as well as investing at the Dome Mill and the Dome tailings facility to increase our capacity and to improve the efficiency of our performance. If we look at growth capital, 2 of the largest investments are related to the TMA 6, including work to divide the tailings dam into cells. And that has a number of benefits for the future that we anticipate seeing reflecting in our OpEx costs on a go-forward basis. And that's largely because we will have some progressive rehabilitation that can take place once the partitioning is completed. The other key component of our growth capital is what I mentioned earlier, and that is the pre-stripping at Pamour as we work to build our Pamour mine into commercial production.

And then finally, we do have a new vent raise going in at Borden that will improve our overall ventilation and as well as some ventilation improvements at Hoyle. And so I have a few more details on this next slide of what exactly some of the capital spend is. I know we did get quite a few questions about what's involved in the 2026 spend. So we wanted to make sure that we were providing as much detail as we possibly could about the investment that we have going forward. And I think that what I would say as a sort of closing remark on the capital spend that we have for the year is that we truly believe this is one of the best ways to drive shareholder value, and that is by redeploying funds into our assets and continuing to enhance returns, lower our costs and increase the efficiency across all of the properties that we own. And so I'm going to turn it over to Eric, who is going to talk about exploration and tell you about all of his 280,000 meters.

Okay. Thanks, Allison, and good morning, everyone. As you know, we've been having a very active exploration program over the past year or so. And -- but at the same time, we've been showing a lot of success, and we've been identifying a lot of new opportunities. So I just want to let you know that we're feeling very optimistic going into '26, especially since we're going to be coming in with this little bit larger budget. And just to go over some of the highlights for '26. Overall, looking at much larger program compared to last year, 280,000 meters in total. And in general, working on a variety of different projects, which are both in mine, near-mine growth projects and also some regional exploration here.

A lot of these projects are continuations of work that we started in '26, but there are a number of refinements and new additions that you'll see, which we think will actually make it more exciting. So I won't go through all the whole slide, but just to highlight a couple of the main changes. The big one -- one of the big ones would be at Hoyle Pond. Work last year was focused really on one main zone, the S zone, which is the largest and highest grade zone at the mine. But the program this year, we're going to be putting substantial effort into the mid and upper part of the mine, where we believe identifying new zones and new actual areas for mining to blend with the S zone will be very beneficial for the mine. Additionally, Pamour, we're going to be -- there's still going to be a strong focus on the conversion drilling around the current pitt resource, but we're going to see a much higher component of drilling along strike and to depth and trying to add new resources.

So that's -- and you'll see in the presentation, we're starting off with some of that work already. The other key things, I think, to point out would be Dome and TBZ. These are 2 exciting -- great growth projects, which we just initiated drilling on actually in the late part of last year. And we believe that they're going to have a very substantial impact and aiming for new resource studies before the end of the year. So a lot of exciting stuff coming up in the next while. So turning to the next slide. What we see here is just a satellite image showing the general Timmins area and distribution of our main operations. And as you can see, Timmins is on the middle west side of the slide here. And you can see Hollinger McIntyre being located just on the edge of the city and then Dome down to the Southeast, Elk Creek, Hoyle Pond and Pamour about 18 kilometers to the Northeast. Turning to the next slide. What we see here is an overlay of the geology for Timmins.

And as you can see, it is pretty complex. So I'm not going to get into the full details. But I would point out that a lot of the bedrock in the area is underlined by a mix of volcanic and sedimentary rocks with the core of the camp really being underlying mostly by volcanics and most of the sediments being on the outside. Additionally, I would point out that a lot of this rock has been strongly folded and faulted by multiple different deformation events. So creating a lot of small-scale features in -- which can affect how we do the exploration in the area. And just to point out a couple of the main features. We have the Duster Porcupine fault, which sits down in the south part of the lower part of the map and dividing the dark and light green rocks. We've also got the Porcupine [indiscernible] line, which sits in the central part of the camp.

And finally, I think on this slide, I'd like to point out that in terms of the operations, we've got Dome and Hollinger McIntyre on the west side of the camp. And these are located just north of Duster Porcupine. And you could see that just north of the -- just on the north and south sides of the Porcupine [indiscernible] line. Looking at Hoyle Pond and Pamour, we're looking at the area off to the east. And these are quite a different volcanic different setting, each deposit being located on narrow bands of volcanics, which are extending from the main Timmins camp. So I guess my main point on that really is that all the deposits are quite different and different types of environments, but all good. So looking in next slide, what we have here is a close up of the Hoyle Pond and Pamour areas, which is a key part of our exploration program and where we've been doing a lot of our drill meters over the last year, and we're going to continue next year.

As mentioned, Pamour is located just north of the Dust Porcupine fault on a narrow band of volcanics here. Main target area here really is along the south contact of the volcanics, which is in green and where it meets the sediments, which are shown in gray. Hoyle Pond is directly to the north, about 5 kilometers or so, and the main deposit being located on a main flexure, a big flexure of the volcanic belt. And Elk Creek is located about 3 kilometers to the west and just east of the fault, which we call the Elk Creek fault. Turning to the next slide. We see a -- you see an image with the lower part of the Hoyle Pond mine and where we are targeting the S zone. And details for all the work here are shown on the slide. The S zone itself is shown in blue. And you can see it's extending from well above the upper part of the mine. And you can see the workings, which are shown in green where we're doing the drilling from. The main target here is really between the 2,100 and 2,300 level, which is the lower limit of the current resource. Turning to the next slide.

What we see here are just some of the recent results from the drilling, which are really the second batch of results we've released from the work and -- as mentioned, these are from the lower part of the zone here. And as we can see here, still continuing to get very high-grade numbers, which are in the range of an ounce to 1.5 ounce in several intercepts over 3 to 5 meters, which is pretty good for most mines. Turning to the next slide. I just want to highlight some of the new target areas, which we're looking at for this year. As I mentioned, we're going to be looking at areas that are more in the mid and upper part of the mine. And you can see it is an area where there has been considerable past mining. But when we look at the geology look closer, we see that there are still lots of areas where we have extensions of zones that were not fully mined and gaps where they didn't follow the trend, potentially gold prices and just having other priorities at the time.

So we've got a bunch of about 6 different areas already identified, and we're going to be starting drilling on these over the next couple of months. So expect to hear more results about that. Turning to the next slide. We go to the south part of the mine where we have the TBZ zone, which is a significant zone of mineralization, which was actually defined by past operators with -- but on relatively wide spacing and then was -- the work was stopped again for other priorities. So the details for the zone and the development that was done on it are shown on the slide here. The main zone itself is shown in purple and measures about 600 meters in plunge length going from 900 to about the 1,500 meter level. So -- the program that we have in mind here is basically just mostly an infill program, so to tighten up spacing within the main part of the -- where it was defined in the past, but also involve some extension drilling below the 1,600 meter level.

The program was just underway in the first quarter. So we were just starting to get results. We press released one hole, but already had showed some fairly good potential here. We did intersect the main zone, 3.7 over what, 7 meters. But a good surprise happened where we actually intersected about 4 grams over 30 meters in an area that wasn't expected. So already seeing some upside right from the beginning. So this is a zone we're going to be targeting for a resource update at the end of the year. We got 40,000 meters planned, and it's already well underway. We've got 2 to 3 drills already down there and advancing now. So just looking at a little bit broader exploration potential at the -- around the Hoyle Pond mine. This is a long section looking to the north and following the same geological contact, which hosts the Hoyle Pond mine.

As you can see, the large areas here that are unexplored, the little bit of drilling that is done is just very shallow and focused mostly around the Elk Creek area. So in our view, this is an area that -- which has a huge potential in the future. But starting for us, we're focusing mostly on the Elk Creek area. as you might have seen in the press releases, we've been having 2 drills working here already for about 7 or 8 months and having some very good success in following up with -- in our results here. So just to show you a few of the results that we have been getting at Elk Creek. It is a bit of a mixture. It's not exactly like Hoyle Pond. We do see narrow high-grade zones, but we've also seen some very broad zones, 4 to 5 grams per tonne of 15 to 20 meters. But important thing is that almost every hole is hitting some good mineralization, and we've now got a footprint, which is about 200 by 600 meters in area, which is a pretty good starting point. So very optimistic about this, and we're going to be continuing with drilling throughout the year.

Turning next, we're going to Pamour. And Pamour, as you know, is already in operation, but at the same time, has a very large resource already. Work we're doing here is really designed mostly to convert more of the resource and then expand it even further. As you can see on the slide here, most of the work that we're doing is centered on the resource, which is on the east part of the property and surrounding the historic pit that was mined there. Drilling that we've done has been done pretty much along the full strike length. And in pretty much every area we've drilled, continue to see some very good results, including wide lower-grade zones, but at the same time, some very high-grade narrow zones as well. So things going very well here. So turning to the next slide, just give you an example of some of the results that we have seen here.

As you can see, label from east to west, pretty much everywhere having good results, which are between 1 and 2 grams per tonne over quite often 20 to 30 meters with a real highlight happening on the far side over 1.2 over 140 meters. And this -- some of the -- a lot of these values, you can see are near the lower limit of the pit shell. So we're very optimistic that when we do our resource update, we'll be not only adding inferred or indicated, but we will be expanding. Going to the next slide. I just want to highlight that we started work on another area of the property here, which is about 1.5 kilometers to the west. And this is what we call Pamour West or in the past, it was known at the [indiscernible]. And it is an area where there was a little bit of open pit mining, but it's actually on the same geological contact as the Pamour.

And very little drilling between the 2 areas. So this was our first hole that we drilled. We've got one drill here already, planning to put another one. But through the year, we're going to be having -- our aim is to try and drill as much as possible, and we think this could make a very good addition to the resource here as well. So just to give you some visualization of the overall potential that we actually can see here. This is a long section to the north again and showing the current pit shell, but also results of drilling, which have been done from underground on from various different levels at wider kind of spacing. So as you can see here, the current pit is -- only goes down to a maximum depth of both 300 meters and even 100 meters on the very east part. And there's a lot of drilling down below showing some very good results already. So we're very optimistic that we'll be able to -- with further work, we'll be able to extend this even further.

So if we zoom out a bit more, I think one of the things I want to highlight here is that you can see that the limit of the actual block model that we're using right now to create the open pit resource is actually truncated right at the limit of those green shapes, which are the underground workings. So that not only do we think that we can extend mineralization deeper where the current resource is, but then -- this is the big area where we're talking about towards [indiscernible] and the gap between. So turning to the next slide, we see the Dome, which, as you know, is another significant growth project for us, where there's already 11 billion ounce resource been identified and where we've now got drilling started. Details of the project here are shown on the slide. As you can see, all of the resource is pretty much centered around the historic pit, which is outlined in blue and captured by both the Magenta and the red outlines.

The current drill program we're doing, I would say, is about 25,000 meters this year. It's a combination of both really -- focus really is mostly drilling to gain confidence in some of the historic data, but also to upgrade more of the inferred resource. And in the end, what we aim to come up with is a resource update by the end of '26. Drilling that we've done so far is mostly in the south part of the pit. As you may have noticed from our press release, we've had a lot of good results in there from both within the pit and on the outside. And just to give you some other views of the project, you could see that this is looking to the north and showing the trend of the overall ore body, which is plunging to the east at about 35, 40 degrees.

We also see the pit shell, which goes down to about 2,000 feet compared to the historic pit, which only went down about 1,000 feet. Another thing to notice here is that below the -- even below the pit, you can still see a lot of mineralization, which is identified here in yellow dots, which, I mean, could, in our view, represent underground potential that we would have to still follow up at a later time. Turning to the next slide. Just giving you another view here and showing some of the latest drill results we had in the south part of the pit. And I would have to mention that this is an area that was not heavily drilled in the past, and we've had fairly good results both within the pit and on the outside.

So very optimistic that we can be able to add more resources here. And turning to -- the next slide, what we see is Borden. And as you know, Borden is located about 190 kilometers to the west of Timmins. And in my view, a very substantial underground mine, where we've been mining there already for 6 or 7 years. Just the overhead shot just to give you a perspective on the overall zone that we're mining and exploring on. As you can see here, in different colors, this is the overall structure. It's sort of plunging to the east and then downwards to the north. And then yes, so the East limit of the zone is actually what we call the Deep Zone 2 and on the very east limit of the slide. And then turning to the next slide, what we see is some results from our current work, which is being done from drifts that are on the 585 level drilling downwards. And I guess the easiest way to explain this is basically all the results are good here. In fact, many of the results we're seeing are double the grade of the resource.

So very optimistic about what we're seeing here. We've also seen some new results which are outside of the resource, so -- and with very high grades. So overall, Borden, we see that as very good, coming along very well. And if you look even beyond that, I'd point out that there is white space drilling that is up to a kilometer away along that same trend and does show that the mineralized zone is still there. So again, giving us a lot of confidence that we're going to have a lot of success at Borden going ahead. Okay. So with that, I think that concludes the Porcupine site, and I'll get Forbes to talk a little bit about Mexico.

Thanks, Eric, and good afternoon, everyone. Obviously, very exciting growth plans we have in Timmins, but that should not overshadow the opportunity we have in Mexico with our Cordero project, the world's largest undeveloped silver deposit. Just to set the scene, we have a map here showing the location of Cordero. To the north is the city of Chihuahua, a population of 1 million people, a major regional hub with an international airport. Just to the south of the project is the town of Parral, which is actually not too dissimilar from Timmins. It's a mining town -- it was built around a silver discovery going all the way back to the 1600s. There's a population there of 120,000 people. There's a number of mining schools. And for us, it's going to be a key source of labor and supplies as we move through into development and operations.

I know cartel has been in the headlines in Mexico of late. I would just note, in this part of Mexico, there has not been a history of significant history of cartel conflict. And you can also see the number of large, long-lived operating mines operated by very well-known companies. We have Agnico, Coeur, Fresnillo, First Majestic and Grupo Mexico, all in the region we've operated for a long time safely and securely. If we just zoom in now on the project itself. We have a really fantastic setup. You can see the landscape here, no population we're dealing with, very gentle flat topography and it's a very benign homogenous landscape. So from a permitting point of view, that gives us a big head start. If we just look at the actual site layout itself, what's really important is this project footprint is on privately owned land that we actually own.

And for anyone who's followed Mexico, that is a very critical element, especially as you move into building a project and operating a large mine. Just some numbers to run through from our feasibility study that went out in the start of 2024. So the reserve base just on silver alone is a touch over 300 million ounces. So that's actually more silver reserves in core, more silver reserves in Hecla. And even with Pan American, if you take out Escobar, which has not been in operation for close to 10 years now, we would actually have more silver reserves in Pan American too. So this is a huge silver deposit. And to give you a rough feel for the cash flow generation that it's going to produce years 1 to 10, there's 14 million ounces of silver payable. Now we do have byproducts predominantly zinc and lead. And over the first 10 years of the mine life, the revenues we get from those byproducts are going to cover all our operating costs, all our TC/RCs, all our freight costs and all our sustaining CapEx.

So if you want to get a rough feel for what the pretax cash flow is going to look like, the byproduct revenues cover basically all those costs. And so the pretax cash flow will be that 14 million ounces of silver times by the silver price. So at $50 per ounce silver, that should be about $700 million per annum over the first 10 years on average. And obviously, at current silver prices, it's more like $1.2 billion, $1.3 billion per annum. So obviously, huge amounts of cash flow this is going to generate. At current prices, the IRR for the build is well north of 50%. And we talk about putting money into the ground rather than doing dividends and buybacks. If you assume our cost of capital is in the high single digits, we have the opportunity here to take capital at that cost and invest it in the ground and generate huge returns by getting a plus 50% return on invested capital.

So I think this will be a very significant value driver for us. And also in the near term, when you look at the actual net present value of the project, $75 silver, I think we're up around $6 billion. If you use a silver price more around where analysts are right now, let's call it, $50 an ounce, the net present value is probably more like $4 billion. I think when you look at the analysts who cover us, the rough multiple they apply is 0.3x to 0.4x NPV. And I think the reason for that discounted multiple is we don't have a permit yet. But I think once we get our permit, if you look at a developing asset that is fully permitted and fully financed in the silver space, it's probably more like 0.8, 0.9x. So when you look at that multiple expansion on an NPV, which could be in around $3 billion, $4 billion, I think that's going to be a very big catalyst for us once we receive that permit.

We do feel we're close on the permit. We're through the legal, technical environmental reviews. We're just waiting for that final approval. This is a project that's going to have a significant socioeconomic impact not only regionally, but within Mexico, not only taxes, but also job creation and just our direct investment in supplies within Mexico. Our plan this year is really to work towards an investment decision towards the end of this year, we'll be doing an updated CapEx and OpEx exercise. We'll be doing a little bit more work on the water treatment plant as well as finalizing our choice of power, whether we're going to go with grid power or gas power generation. The objective there is by the end of this year, make a final investment decision to go ahead with the project. The majority of the development capital will go into the ground in '27 and '28 with the first potentially being produced in 2029. That covers everything on Cordero. So I'll just hand it back now to Tony for some final remarks before the questions begin.

It was a lot more fun to stand up [indiscernible]. We could talk about -- I could spend a whole hour talking about exploration. I mean, you can see and the upside in terms of what we do in exploration. We could spend half an hour talking about all the synergies in Porcupine, all the growth initiatives in terms of investment in the 3 existing mines plus the investment in the mill and the ability to build Dome and TBZ out of what we've acquired now with picking up the Kidd met site in terms of what the growth is there. And so -- and we can talk a lot about initiatives in the mines to reduce costs. There's a lot of exceptional value drivers for this company and lots to do. And we got this slide here. I mean -- and again, it shows -- talk about what we're trying to accomplish, but it doesn't show now the Kidd acquisition, which with Kidd enables a lot of this happening with our permit in Mexico enables this happening.

We're strong balance sheet, fully financed, lots of discipline in the company and lots of potential growth going forward. So a lot of value drivers. I think we got all the value drivers that you can look for in this industry is here with Discovery. And I guess maybe the other part is there's a lot of energy and the value is made by people. There's a lot of people with a lot of knowledge, a lot of energy and a lot of motivation to get things done. So I think it's pretty exciting times. And let's just say, keep watching. I think we've got a lot of new stuff coming forward as we keep putting the whole picture together in terms of vision of what Discovery is going to be. So anyway, thanks. Hopefully, we didn't take too long. I didn't bore anybody, and we're happy to take some questions.

[indiscernible] I don't need a microphone, do I?

No.

No, but we are on the webinar.

Okay. He told me -- your dad told me at -- during the war that the only way you can get out of Poland was either you had to have gold or you had to have diamonds. And back in early 2024, when Tommy come to me about the Poles buying a lot of gold. As a matter of fact, in 2024, the Polish bought more gold than any other country in the world, more than Japan, China and India, there are government's and there are individual purchasers there.

Now that was because Russia moved in Ukraine. There was uncertainty with that point in time. And now we have other issues in the world going on, mainly Trump, which gold loves Trump because every time he talks, the gold goes up.

My question to you is that congratulations on purchasing Newmont at the time that you did and expanding Timmins now with Kidd. On the silver side, the Kidd mine is the second largest silver producer in Canada just behind Hecla. I get to see the numbers every now and then. And so with your Kidd operation, is there plans to expand that recovery of silver? And of course, then also with the mill, you have an autoclave that's been mothballs for lots and lots of years at Kidd. And with your TMZ discovery or that ore body being refractory ore. Is that what your plans for the future is to return that autoclave on and produce gold from refractory ore.

Thanks, Tom. Yes, in terms of -- just came back to the first thing in terms of my father coming over to Canada, he would say there's only 2 things you should invest in. And you can look at a lot of things even today, but it's a gold and land, right? And I know a lot of stuff happen and there's all kinds of -- all kinds of places to invest. But -- and I remember with Diane Francis, when we were building Lakeshore Gold and I remember one day getting upset about the stock market and all the trials and tribulations we have trying to build a mining company, you said, yes, but imagine if you're in any of the other space, you have a product that always stays relevant. And gold will stay relevant for the next 100 years, next definitely for the well outlive us. So yes, we do have the right commodity.

In terms of the Kidd met site, Tom, there's 4 circuits. I mean that was a well-built operation. They had 4 circuits. They call them A, B, C and D because when Kidd was in there was 4 different types of ore, they could get high-grade copper or copper, zinc core, high-grade zinc core, zinc, lead ore. So they had the 4 circuits. And over time, as the mine progressed and you went -- they lowered production capabilities as they went deeper, they closed down the A circuit. So that's sitting there right now in care and maintenance or it wasn't put away greatest, but it's there. The B and the C circuits they use, they don't need both of them to run the current Kidd operation. But by using them, your utilization of the plant is really good and maintenance. And then the D circuit was a flotation circuit was converted to a nickel circuit.

So that D circuit, we look at it being perfect for using to create a flotation concentrate out of the refractory ores and then look at the next step. What do we do? Do we put in an autoclave? Do we go [indiscernible] or do we ship a gold concentrate to the Horn smelter or something like that. So we intend to do that. And with the A circuit, we intend to -- we're going to have to pull out the flotation part. We're going to have to change the circuit in the mill and put in a conventional CIL gold circuit for the Pamour run of mine. So it will be one of -- in terms of a metallurgist and mill operators, I mean, it's going to be one of the -- a different -- one of the very unique processing plant where you can have conventional gold, you can have conventional base metal and you can have refractory gold and all the stuff. So in terms of people wanting to learn metallurgy and get multiple what the discipline understanding, it's going to be a pretty exciting plant. I look at it. Okay. Any other questions?

Tony, can you talk about the closure liabilities -- talk about the liabilities that come with Kidd and how you're going to deal with those, please?

Yes. So the closure liabilities at kidd, that's a good question. So the kidd mine itself has a closure plan, which would involve -- there's some waste rock around surface filling stuff back into the pit and letting the mine flood, tearing down buildings, et cetera. It's about CAD 78 million in terms of the plan. I mean our goal is to keep looking at Kidd and what to do there from an investment point of view in terms of moving that forward. What doesn't get included in those numbers are costs. Those are costs assumed that you would be doing them when everybody is close, so it's got full carry of G&A on it. And it doesn't include -- there's probably about $50 million, maybe $100 million worth of equipment in the mine if we needed to take whether it's electrical gear, whether it's trucks, drills, jumbos, et cetera. So there's value there. But that's the kidd.

The met site itself has got about a $34 million closure liability, and that's mainly just carrying out buildings, et cetera. So those are the 2 main liabilities we take on initially. The tailings area, right now, there's a closure liability in the tailings area, but we've worked with Glencore to say they're going to retain the financial assurance for that for 2 years. And then they're going to indemnify us for up to 3 years for anything happening around that tailings facility, while we -- and they're going to fund the first USD 75 million of work around the tailings facility to set it up. And then what we've said to them is if we were able to then get that tailings facility permitted to now put gold tailings on it, which the closure plan for that tailings facility said if you could -- the best thing to do is to cap it with gold tailings.

If we could then put gold tailings on there and right now, to lift, it's about 50 million tonnes of capacity there, which is more than enough to take Pamour for another 20 years or maybe -- sorry, maybe we want to increase Pamour's productivity maybe to 10 or 15 years. And there's further expansion capabilities there with that tailings. So in a nutshell, yes, there's closure liability somebody might sit there, but it's like we've done with the Porcupine, we've taken these liabilities and we actually turn them into assets, right?

And just one quick follow-up. The -- will the Kidd Creek mine when that shuts in a year or so, I understand it's about 1 year's life. Will that stop -- will that workforce then transition to mining gold for discovery? Or will that be a closure plan?

No, that will be part of -- our goal is that you've got people. We have lots of openings and we have lots of ambition to grow. So I think it's going to open up new opportunities for people. Definitely, people working in a processing plant. I mean they're going to be busier than ever. And then the people at the mine and et cetera, there's technicians, there's engineers, geologists, we're going to have work for them and operators. So I think they'll be work for people as much as they want, and we're probably still going to need to hire people. Go ahead, John.

Eric, I'm thinking about the Slide #5. Maybe if you could put that one back. The scale was 5 kilometers to an inch or something for -- Yes, for Timmins and 10 kilometers for kidd. So it makes kid look small. How many square miles of land is the kid package versus the Timmins Borden package? Have you doubled your land? Then at the top of that slide, where is the town of Cochrane and the Detour pit. And on the kidd's metallurgical side, where is the town of Matheson. Matheson is just to the right of the mill. And I think the top of the slide is close to Cochrane or Detour pit.

That's probably Matheson. Cochrane is probably right up here. Teachers off the map, Cochrane might be here.

So is this doubling your land package?

Pardon?

Does this double your land package?

More than doubles the land package, I would say.

So when Kidd started in 66.

These townships have never been drilled.

When Kidd started in 66, gold was $35. So how many college students are you going to have this summer doing geochem grids all over this doubled land package?

There's numerous showing drill -- previous drill holes and throughout -- scattered throughout here on this baggage. And remember, this is the best -- the one, the largest metallurgic, massive sulfide deposits in the world. And where is the other ones, right?

This excites me most of the transaction. But just switching gears. I did the best literature search I could. There was 1 fatality in '01, one in '07, 1 in '11. Each of them were somewhat in their 20s tragically. But it's gone 15 years without a fatality, going down to 9,880 feet. Once I went down a mine in South Africa that lost 1 a week, 30 years ago, Kusasalethu, Harmony is the renamed not. That mine has gone 3 years without a fatality. It used to lose 1 a week. So the improvements in safety technology are great. How deep do you think you can mine? I think Glencore a year ago reported 133 million tonnes of resources, 1% copper, 3% or 4% zinc, I think 3 ounces silver. So can you go to 12,000 feet? Can you go to 15,000 feet? Do you want to use those workers for TVZ and Elk Creek? How do you think you do that?

Well, we're going to assess that. And we've looked at it. I mean, you go down at Kidd, yes, too deep. Pierre, you can -- I mean what's your thoughts, Pierre?

Well, as you just mentioned, Kidd can go really deep. In terms of priorities, where we could make a big difference right now. You heard Dome, you heard TVZ, you heard Pamour, Pamour West. You heard the Hollinger as well.

Ore through the mill.

Right. So at the end of the day, there are studies we're going to undertake to see how deep the resource is going, and how deep we will want to go there. But if you just look around, LaRonde is at 10,000 feet, give or take. That should give you probably the first stretch target.

They did a feasibility study on Kidd Mine 5, which would be another 100 meters, 100-somewhat meters, runs till 2035 and then [ Kidd Mine 5 B ] went to 2045. So I mean there's a lot of infrastructure. We look at that, but at the same time, you got to make sure you can do things safely, right?

And I mean the other part is economically, right? It is far down there, right? And how will the infrastructure support it. But we're going to explore that. I mean there's some significant exploration upside higher up at Kidd again. And maybe a little bit off to decide a kilometer or 2, but we think that there's some -- there's a lot that can be done here, and we're going to look at it, right?

And by the way, sorry, when you talk about safety, if I were to show you the Kidd safety stats over the last 5 years, they're second to nobody in the world. It's safe for the work at Kidd underground at 10,000 feet than to work at Walmart in Dallas, Texas.

Concerning Cordero, where maybe the permit comes any week. And you did the detailed engineering over 2 years ago before we had Timmins as a distraction. Wheaton paid $4.3 billion down for 75 million recoverable ounces -- revenue ounces, not counting inferred, reserve measured indicated. That's sweet. I'm just brainstorming.

One way you could finance Cordero would be if you went to Glencore that mines -- used to have 12 zinc mines, or Trafigura that owns Nyrstar and ask them to market the concentrate, so you don't have to think about lead and zinc. You just run trucks and mills. And maybe they pay you $1 billion for 20%, which is a discount to what you would get if you did a stream with Wheaton. That's the second option.

Then thirdly, you have a slide with all your neighbors. Minera Frisco, Carlos Slim, he's a local Mexicano. He can manage the culture, which has many rich, rich attributes. There's Grupo Mexico, Peñoles, Fresnillo, local Mexicano partner for 20%. I'm sure there's 30 Toronto firms that will raise $800 million for you and charge $40 million in fees. But I don't want to take anything away from my buddies in Toronto or Vancouver. But if you -- maybe you'd only have to pay 0.5% if you sold 20% of the mine in an M&A deal, and had a big auction.

How do you think is the most convenient way to finance Cordero? I don't think you need to issue a share and it finances independently. But do you want someone to market the lead zinc? Do you want a Mexicano to talk to the banditos? Do you want a financial partner to pay top dollar? I like a chicken chimichangas any way I can get it.

A lot of good points, and Alison can speak up. Definitely, it's financeable, definitely very valuable project. And yes, we've been having good talks with Glencore. And yes, that's option. I think the biggest thing is we get a permit. But I don't know, Alison, do you want to give a little color there?

Sure, John. So we have explored all the options that both you've brought up and that Tony just mentioned. We're getting incomings often about Cordero. And I think that as we look across the collective needs, not only at Cordero but at Porcupine and also at Kidd potentially, we want to make the best collective decision at the lowest cost of capital for the organization. We have also to add on to your list looked at a high-yield debt offering, which is at rates of 7% for USD 400 million to USD 600 million offering in addition to what you just listed off. So no final decisions yet. We'll consider all of the things on the table and try to come up with the best value proposition for the organization.

Do you think it's about the cost of capital or simplifying management so you don't have to market lead and zinc, and you have a local partner that manages the local culture?

It's all of the above.

Yes. I learned as we work around different jurisdictions in the world. In the end, the people -- and actually, we've been to Mexico, the people we have in Mexico, they know their stuff. We don't have to go there and tell them what to do, right? And whether you're in Australia or you're in Chile or you're in Peru or you're in Nevada, using the locals as much as possible, that's the benefit. And we're talking about the benefit we bring to the table in Porcupine because we're a bunch of locals. We got to follow the same rules that we see that's value creative. We're not going to have one with big egos. We just want to create value for shareholders and demonstrate that we can be really, really good, responsible miners and that open pit mines, whether they're in Mexico can be done properly, responsibly and generate a lot of prosperity for all stakeholders, right?

If I could bother you for one more. I'm assuming the slides got done Thursday or Friday during business hours. And sometime over the weekend, you settled with Glencore's attorneys and had the Kidd Creek press release today. So there's 4 categories of CapEx at Kidd Creek that you haven't had time to update. Eric is going to need money for college students to do the geochem grids to figure out where to drill. So you're going to have exploration money. Then you're going to have tailings CapEx, maybe expense, then you might have mill CapEx, and then you've got to have underground CapEx because they stopped CapEx last year for equipment and development, and whatever prestressing you have to do for safety.

So to one significant digit, could you make a guess as to what each of those 4 baskets might be? What are the $1 million or $10 million? And just so nobody is afraid, there's $100 million basket.

We'd like to try to ramp up the exploration here. We want to do some exploration underground at Kidd. We can probably spend $20 million to -- and maybe hit to 2027, $30 million to $50 million exploring here because you've got a big price, right? If we only find one -- 20% of the Kidd deposit, we found a major new deposit, right? So that's one. The Kidd mine itself is and running. In 2024, it was the most profitable mine within Glencore, single mine. It still is in 2025, so it was in 2025, and it would generate a lot of free cash flow. Now depending on when we take it over, and we run -- if we run their current plan, we can still bring in plus $50 million to $60 million -- $50 million to $100 million, depending on pricing from Kidd. So you can invest that money back in there in terms of capital.

The Kidd Mine 5 capital was upwards of about $400 million to get it built. If you did it their way, we probably would do it in a little bit of a different way. So there is that. The tailings area, the first bit of this work is going to be funded by Glencore, up to $100 million or USD 75 million, right? And it's going to create a lot of synergies for us because it's going to -- what we're going to do for Pamour, for the Pamour waste rock right now that we're hauling to some place. We're going to make actually, haul Pamour waste rock to the property line, and then they can pick it up and put it in the tailings area. So we don't have to pay. Our hauls maybe will be the same, but we won't have to pay to store it and new pads. So we're probably going to get some benefit for that in the first year. And then we're going to be spending money here.

We're spending $140 million in our tailings facility in 2026. We're going to spend about $120 million in 2027 again. Tailings areas cost money. We've got we're going to be going here to build a new tailings area, and we're probably going to have to -- we're definitely going to invest some capital in building and putting in a gold circuit over at Kidd for Pamour. It will drop costs, et cetera. So some of it is more being put in line for 2027, but you can see, maybe it will be neutral in 2026. The tailings area is somewhat neutral for us in 2027, but we will -- we do intend to want to start developing and putting some money into the Kidd Met Site definitely. And we'll assess the mine site.

And so it could be orders of definitely $50 million of exploration to maybe orders of $100 million to $200 million on CapEx for milling and maybe keeping the mine going and/or not. But the mine, as it's running, the mine can be somewhat that these prices could be somewhat self-supporting itself in terms of capital. So a lot of things to work on still, right? But we're going to want to put money to work. If we can build a new mill at Kidd, we won't have to bring in power, we don't have to bring in water. We don't have to wait for a lot of permits. We have a tailings area that we can just do normal work on that we're doing at tailings area. So we've got a big head start on a lot of things. But we are going to have to invest capital over the few years to build a new mill there.

Did I answer the question without answering the question?

Okay. I think we're seriously eating into our lunchtime now.

We have a question from the audience. Why is the company called Discovery Silver? And would it attract more investors if it was called Discovery Gold?

You went right through all of them and came up with that one, didn't you?

That's the question. Yes. I mean we know our name was Discovery Silver. It used to be called Discovery Metals. They changed it to Discovery Silver to get the silver. We had a lot of discussions. I mean, when we came up with the -- you're seeing that a lot of brandings at Discovery, and we're on the [indiscernible] it's got gold and silver there. Maybe we're going to have to put some -- maybe we have to go back to the name of Discovery Metals, right? But we still own that name, right? Yes.

But like in terms of Discovery, like in terms of -- well, I think Eric talked about it. We got -- we can discover a lot of -- not a lot of new golden metals with drilling. We're going to discover a lot of new value to bringing in costs and we're going to discover a lot of new value by building some new mines.

So it's a pretty good name. It's whether it's silver or gold or metals, right, or mining, right? So we don't want to lose the DSV and our ticker symbol, that's somewhat important to us.

We went through that exercise last year. We dealt with the front end of the name last year and decided to keep it. That way, regardless of what we do at the back end of the name, DSV will always be our stocks.

And one question from the webinar. Any talk about listing to the NASDAQ or NYSE?

Yes. I mean that's part of our goal, to work that. Jennifer, I don't know. Maybe you want to answer that?

Yes. We're looking at that. We're looking at that for -- in the near term, definitely. We're getting some of our internal controls and things organized so that we could be in the best position to list this year. Likely in NYSE, not Nasdaq.

But it is part of our goal for 2026. We want to -- it's not like in separate terms. I mean we need to attract investors and shareholders, right? You go out to market. And how do we say we're even walking here. If you did want a Tim Hortons coffee, if you needed one, you walk by 3 Tim Hortons just coming here. You need to be out there and active. And so we intend to do that, yes.

Okay. Does anyone want some lunch? Listen, thanks very much, everyone, for coming. This was -- as I mentioned at the beginning, we really enjoyed meeting with the investment community. We're out there marketing a lot. We think we have a good story to tell that just got a whole lot better with today's announcement. And stay tuned because there's a lot more news coming. Thanks very much.

Good afternoon. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Fourth Quarter and Full Year 2025 Results Conference Call and Webcast. [Operator Instructions]

I will now turn the call over to Mark Utting, Senior Vice President, Investor Relations for Discovery. Mr. Utting, you may begin your conference.

Thanks very much, operator, and thanks, everybody, for joining us today for Discovery's fourth quarter and full year 2025 conference call and webcast. Joining me today are most of Discovery's senior management team. Speakers in today's presentation will be Tony Makuch, our President and CEO; Alison White, our Chief Financial Officer; Pierre Rocque, our Chief Operating Officer; Eric Kallio, our Senior Vice President of Exploration; and Jose Jabalera, our VP, Sustainability and Corporate Affairs in Mexico. After each speaker presents, Tony will have some concluding remarks.

As you know, this morning, we issued our Q4 and full year 2025 results. The press release, MD&A and financials are available on our website at discoverysilver.com and on SEDAR.

Before we begin, I'd like to remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations, assumptions 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 indicated in the forward-looking information. For more information about [indiscernible], please refer to the information on Slide 2 in this deck as well as forward-looking information on our website.

In addition, we'll also be making reference to a number of non-GAAP measures during this presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures do not have any standardized meaning prescribed under GAAP and therefore, may not be comparable to those of other issuers. Again, I refer you to Slide 3 in our deck and our website for information on non-GAAP measures.

Finally, all dollar amounts today will be in U.S. dollars unless otherwise indicated.

With that, I'll turn the call over to Tony Makuch, Discovery's CEO.

Good afternoon. Thanks, everyone, for joining us for this call. I guess we didn't all get the from Doug Ford that we had other priorities for today. But we appreciate you being on. Maybe -- and before I get on to the results, I always like to -- in the end, we have to acknowledge the people at Discovery. We made a lot of progress, and we are doing something special here, and we have people in Porcupine, people in Chihuahua. We're doing some, I think, some great stuff. Our people live in [indiscernible], Toronto, [indiscernible], a lot of different areas in Canada and Mexico. And anyway, thanks for all you do, and we look forward to continued success as we progress out of Q4 into 2026.

Looking at Q4 in 2025, it was a solid quarter, in particular, adjusted earnings per share increased 75% from the previous quarter. We continue to generate substantial cash flow even as we increase our investments for the future, and we continue to build our balance sheet strength, definitely nice to be in a strong gold market. I'll briefly run through the numbers and then others will get into the details.

There's a couple of forward-looking statements things. Again -- and Mark made reference to them, so I won't do that. I'll just jump to Slide #4, which summarizes our strong results for the quarter. And you can see production increased 6% to almost 67,000 ounces. Operating cash costs improved from Q3, largely reflecting inventory movements between the quarters. At the corporate level, our all-in sustaining costs increased from last quarter, but this was related to the higher sustaining capital expenditures in the quarter. And last quarter, we said we would be increasing CapEx in Q4, and we did. So these are investments aimed at driving our growth and helping us to improve the operations and ultimately to see lower costs and improved productivity over the next quarter.

Going to Slide 5, I just talked about our earnings performance. Not bad for a company with this first production just 9 months of -- or 8.5 months of production, we already had significant earnings. Revenue totaled $274 million, a 16% increase from last quarter. Revenue does include gold sales of 64,000 ounces and a net realized gold price of [ $4,167 ] per ounce. EBITDA totaled $126 million, similar to the last quarter, and there was a $45 million impact from an accounting charge related to reclamation obligations, and that change brought down our EBITDA to some degree. And you can ask Alison about that a little bit later in the call, now to pass the questions on.

Earnings per share was $0.08 per share, while adjusted earnings per share were $0.14. As I mentioned, our adjusted earnings per share was up significantly from $0.08 last quarter.

Slide 6 looks at cash flow and cash -- our cash position. As I mentioned, we continue to generate a lot of cash flow in Q4. The operating cash flow totaled $163 million, up from $153 million in the previous quarter. Free cash flow was close to $70 million. It was lower than the last quarter, but again, it reflected our higher capital expenditures in the quarter. Our cash position in Q4 rose 20% to $410 million. Our total liquidity rose to just under $660 million and total liquidity, including our cash as well as $250 million from a revolving credit facility we finalized in Q4. It also has a $100 million accordion feature, but you may recognize this is all undrawn at this point in time.

Going to Slide 7, looking at our key investment programs. Total capital expenditure was just under $100 million, including leases in the quarter. Sustaining capital expenditures were $34 million, mainly related to investments in Hoyle Pond and Borden in new mobile equipment, capital development and infrastructure at the underground mines. We also continue to invest in our Dome mill and our new -- our tailings facility to support our operations going forward.

Growth capital was largely focused on pre-stripping at the Pamour and investments in our tailings management facility. I'll talk to you more about that in a moment. Capitalized exploration mainly related to resource conversion drilling was almost $10 million, and you'll see momentarily that our exploration expenditures will increase substantially in [indiscernible]. We feel it is as much a driver as high gold prices and production, what we can drive in terms of value with exploration drill bit, I think, is enormous in this company.

Speaking of exploration on Slide 8, I think we put out some 2 press releases, I guess, one in Q4. We just put one recently out in Q5. And I guess in simple terms, we're getting excellent results everywhere we are drilling. Our resource conversion and expansion drilling is going very well at Hoyle Pond, Borden and Pamour, which is the three main areas where we're drilling, also having success at district targets like Owl Creek and the Broulan pit. Owl Creek being contiguous at Hoyle Pond, a target that's about 1.5 kilometers west of Pamour. In the results we issued earlier this month, we also reported very encouraging results at the TVZ zone and favorable results from initial drilling at [indiscernible]. Eric will get into more of those details later in the presentation.

I'll just turn now to Slide 9, we did issue our guidance this morning with our Q4 results. That's our guidance for 2026. And I think our guidance shows the solid production growth from 2025 to 2026. Unit costs that will improve as the year progresses and the continuation of a significant investment program to support our growth and improved performance.

Slide 10. Production guidance is 260,000 to 300,000 ounces. It is important to note that production will be weighted to the second half of the year. Unit costs will start the year at high end of our target ranges, reflecting the ramp-up of production as well as the significant weighting of capital expenditures in the first half of the year. By the second half of the year, we expect to see the numbers that are in the lower end of our ranges and potentially better than the range specifically as we see some of the cost savings related to the capital investment.

Going to Slide 11, looking at our capital. At a high level, the run rate for capital investment in Q4 of 2025 will continue in 2026 and be weighted to the first half of the year. In terms of sustaining capital, we are investing significantly in replacing the mobile fleet on Hoyle Pond and Borden and in upgrading infrastructure. We're also investing in the Dome mill and the Dome tailings facility to both increase capacity and improve the efficiency of performance as well as our environmental standards in terms of how we want to progress specifically in our tailings area.

Looking at growth capital, the 2 largest items are investments at the TMA6 or our tailings facility, including work to divide the #6 dam into cells. We did this at [indiscernible] Gold at Owl Creek mill. We did it at other places. It has a number of benefits, including allowing for progressive rehabilitation and reducing potential liabilities going forward as we progress and continue the position in these areas.

Other key components of our growth capital are continued pre-stripping at Pamour as we build the Pamour mine, bringing Pam into commercial production probably into 2027 as well as a move that rig.

Going to Slide 12, the $90 million to $100 million we're showing for Cordero is mostly related to the change in the land use fee. We did change the land use. We are expecting to see this sometime in Q1 of this year, and then we feel pretty confident moving ahead with this project. And finally, as mentioned, we are planning a significant increase in our exploration budget in 2026 from 2025, mainly in the Porcupine region in Ontario. But as I said, exploration is success driven. We're having a lot of success in exploration, and we plan to do a lot of drilling this year, at least 280,000 meters of drilling.

So with that, I'll turn the call over to Alison White, CFO.

Before I get started, I'm actually going to let Mark Henning say a few words about our technology on the call today.

Yes. So I've been informed by Q4 service provider that they have had some technical problems and that while the broadcast, the audio is working, these slides are not visible. We apologize for that. We'll be looking into it after the call. What we will try to do is be as clear as we can in terms of the points we're trying to make and make sure that copies of the slides are available after the call as well. Again, our apologies for that, and we'll continue on now.

Thanks, everybody, and thank you, Tony, for the introduction. On Slide 13, sorry, Q4 was a strong finish to 2025. We had operational momentum that translated into solid financial results across the business. We reported revenues of $274 million in the quarter, a 16% increase quarter-over-quarter, driven by higher-than-average realized gold prices. On a full year basis, total revenues reached $653 million, reflecting 2.5 quarters of results under Discovery's ownership. As we had communicated earlier in 2025, Q4 2025 was a period of reinvestment for Discovery with increased capital expenditures to provide needed investment for the Porcupine operations to achieve their full value potential. Very importantly, we had EBITDA of $126 million and continue to generate solid cash flow with operating cash of $163 million and free cash flow of $68 million after deploying $95 million in capital expenditures to further advance the asset base at Porcupine.

If we move on to Slide 14, let's look at adjusted earnings. Discovery delivered adjusted net earnings and adjusted net earnings per share in Q4 of 2025 of $113.5 million or $0.14 per basic share, an increase of 75% from the prior quarter, demonstrating strength in revenues from robust production throughout the quarter. Net income also benefited from a deferred tax recovery driven by an adjustment of previously unrecognized deferred tax assets related to reclamation obligations as reclamation spend was moved inside the active mine life. As we walk from the $0.08 of unadjusted earnings per share, there's an addition of $0.04 for a onetime $5 million -- excuse me, $45 million reclamation expense for nonoperating mine sites due to an accounting remeasurement related to a discount rate change, which will measure the obligation in line with the applicable accounting standard. There's a $0.01 change of $10.9 million in expense related to share issuance for the TTN resource development agreement that was put in place during the quarter and another $0.01 for foreign exchange losses and TSA costs arriving at the total of $0.14 in adjusted earnings per share for the quarter.

Let's review EBITDA on Slide 15. EBITDA grew quarter-over-quarter, driven by increased revenue as gold prices climbed, partially offset by other operating costs recognized. Overall, Discovery has continued to have progressively strong momentum with growth in EBITDA during each quarter of 2025. Equally, through strong earnings generation, we continue to see positive momentum in our free cash flow. The free cash flow generation bolsters the company's balance sheet and allows for capital redeployment into the business, promoting additional value.

Speaking of reinvestment, let's move on to capital expenditures on the next slide. During the prior quarters, we mentioned that the second half of the year would be more heavily weighted toward capital expenditures. The 53% increase in capital spend from quarter 3 to quarter 4 demonstrates that commitment, which will remain consistent as we move into 2026 and aligns with the guidance that Tony mentioned earlier. Capital expenditures in Q4 2025 totaled $99.9 million compared to $65.2 million in Q3 of 2025. Of the $99 million, sustaining capital expenditures accounted for $34 million, while $66 million were growth capital expenditures.

Sustaining capital expenditures were largely focused on procurement of mobile equipment and capital development at Hoyle Pond and Borden, combined with construction work to buttress the # 6 tailings management area at the Dome property. Growth capital expenditures primarily related to pre-stripping at Pamour and longer-term investments at the TMA6.

Let's move on and look at cash costs and all-in sustaining costs on Slide 17. Q4 2025 cash cost per ounce sold improved to $1,185 versus $1,339 in Q3 2025, primarily driven by a higher change in inventory in the prior quarter. In Q3 2025, inventory change costs of $13.8 million were recorded related to ounces held in inventory at the end of Q2 2025. And if we look at all-in sustaining costs on Slide 18, all-in sustaining costs averaged $2,034 per ounce sold for the quarter compared to $1,734 per ounce sold in the previous quarter. The increase in ASP per ounce sold compared to the previous quarter largely reflected a $13 million increase in sustaining capital expenditures primarily related to higher levels of investment in mobile equipment and capital development, higher corporate G&A costs and higher accretion and amortization expenditures related to reclamation obligations, which was partially offset by the favorable change in inventory that I previously mentioned.

And if we move to look at our liquidity slide on Slide 19, Discovery's cash balance at December 31, 2025, totaled $410.7 million, an increase of 20% from $341.5 million at September 30, 2025. The stronger gold price environment translated into $68 million of additional free cash flow, and that's net of the meaningful amount of capital we deployed back into the business and that I mentioned earlier. Discovery's liquidity position remains robust with $411 million in cash on hand, a $250 million undrawn revolving credit facility and $100 million accordion feature. We have meaningful financial flexibility, and we believe this balance sheet strength gives us the foundation to advance our strategic priorities with confidence.

And I'll now pass it over to Pierre for his remarks.

Thank you, Alison. It is a pleasure to be presenting our Q4 results from our Porcupine asset. During Q4, we recovered 66,718 ounces of gold and poured 67,000 ounces. Both of these results show an increase from the previous quarter when we recovered 63,514 ounces and poured 65,978 ounces. Higher production in Q4 reflected the favorable impact of increased mining rates at Pamour and higher average grades at Hoyle Pond and Borden. The overall grade for the quarter was lower than in the previous quarter, mainly reflecting a higher proportion of tonnes processed from Pamour.

At Porcupine, you may recall the impact of summer high temperatures on the production from the mine as the higher grade stopes were temporarily slowed down. Those stopes are now back to normal production rate, and we are assessing ventilation upgrade and cooling options this year to provide relief during the summer months. At Borden, we experienced highway closure on several days due to winter storms in December. We ended up stockpiling the ore at site, which was delivered to the process plant early in 2026.

As for Pamour, our mining rate remains well ahead of the PA plan for 2025. At the Dome mill, we processed over 892,000 tonnes at an average grade of 2.58 grams per tonne and average recovery of 90.2%. Based on operating days during Q4 2025, mill throughput averaged 10,145 tonnes per day, a 9% increase compared to the previous quarter. Mill operating costs during Q4 averaged $21.68 per tonne, similar to the $21.15 per tonne processed in Q3.

Operating cash cost. Operating cash cost per ounce sold averaged $1,185, down from $1,339 in Q3. Site level AISC averaged $1,824 per ounce sold compared to $1,699 in the last quarter. Slight increase in AISC reflected a 49% increase in sustaining capital expenditures, nearly $33 million more in Q4. Our sustaining capital expenditures during the quarter were mainly related to increased mobile equipment procurement and higher levels of capital development at both Hoyle Pond and Borden, along with investments at the process plant and tailings storage facilities.

I'll now turn the call over to Eric Kallio, our Senior VP, Exploration.

Okay. Thank you, Pierre, and good afternoon, everyone. I'm on Slide 21. Before I start, I'd just like to say that it's been another good quarter for exploration with another 50,000 meters drilled and excellent success with drilling at operating mines and new growth projects. So with this in mind, there's a lot to talk about. Before getting into that, I'd like to just start with a few comments on the location and geologic setting for our key projects in the Timmins area.

So starting with geology. I first like to point out that the entire area we're looking at here is in the southwest part of the [indiscernible] belt underlying by rocks from 4 main formations, including 2 volcanic and 2 sedimentary, the 2 volcanic being the [indiscernible], represented by the green and yellow covering most of the central part of the map and the 2 sedimentary being the Porcupine and Timiskaming, which are the gray and darker gray units surrounding volcanos.

Eric, can I just interrupt you for one second? Just for this part, particularly of the presentation, I can certainly imagine how it would be helpful to be looking at the map. I'm told there is on the left side of the screen that you'd be looking at a downloadable PDF. I don't know exactly what the icon is, but there is a PDF there that can be downloaded and viewed. So that may be helpful as we go through these. Sorry, Eric, go ahead.

Okay. No problem, yes. So in addition to that, and as indicated here, I think it's important to note that most of the rocks here have been strongly folded cut by 2 very prominent faults, including the Duster Porcupine, which is the east-west trending dash blue line near the lower part of the image and the [indiscernible] Benedict, which is the North-South line, which crosscuts this near the center. In terms of corporate current operations, the [indiscernible] holes here sit on the west side of the map. just east of the city and north of Duster Porcupine and Hoyle Pond and Pamour are approximately 18 kilometers to the east and along narrow bands of volcanics extending easterly from Timmins with Pamour being adjacent to the Duster Porcupine and Hoyle Pond being about 5 kilometers to the north.

So turning on to my next slide, which is #22. We see a close up for the Hoyle Pond Owl Creek area, which contains 3 of our main targets, including the Lower S, TVZ and Owl Creek. And as mentioned, this area is located on a narrow band of volcanic 18 kilometers from Timmins. As shown here, Hoyle Pond is located on the far east side of the image with mineralization centered on a distinct Northeast trending structure. The Lower S is on the northeast side of the mine, just east of the 1060 fault and the TVZ and sedimentary rocks 800 meters to the south. Owl Creek is about 3 kilometers to the west and centered on an easterly plunging wedge of volcanics just east of the Owl Creek fault with mineralization mostly in swarm [indiscernible] near the east tip of the wedge.

So turning to Slide 23. We can see a long section for the Lower S., where we added another 12 drill intercepts to the east and west sides of the current resources with very positive results. As shown here, drilling to the east included 6 new holes into the projected down plunge extension of the zone and included multiple holes with visible gold and highlights such as 59.18 grams per tonne over 6.2 meters and 31.33 over 1.6 to confirm that the zone is definitely open to depth.

Drilling to West included another 6 holes targeting the lower edge of the zone and as with Q3, continue to identify more high-grade lens of mineralization, included values up to 69.34 over 4.1 and 28.73 over 5.1. Considering the above, we're very happy with the progress here so far and plan to keep at least 2 to 3 rigs active for the near term, plus another 2 to 3 in the middle to upper parts of the mine.

And then turning on to Slide #24. We see an image for the TVZ, where drilling is now in progress, and we see results from our first hole. As previously described, TVZ is a significant zone of mineralization in the southeast part of the Hoyle Pond mine that was partially drilled and defined by past operators where we're now going back and adding more holes to support a maiden resource update later this year. Details for the zone as it modeled to date are shown on the current slide and indicate mineralization in a series of northeast trending lenses between the 850 and 1410 level, with the bulk of the mineralization being the one main lens, which we call the TVZ2 shown here in green, and most of the remainder in splay sitting to the north.

Also shown in the image are locations for the new drilling, which is being done on the 1210 and 1680 levels with work on 1210 focused mostly on infill and conversion and 1680 on extensions to depth. In terms of results, we have the one hole back so far, but with very positive results, including intervals of 3.9 over 7.5 from the TVZ2 and 4.1 over 30.1 meters with multiple high-grade intercepts from an untested gap 100 meters to the north of this.

Going forward, the program is continuing with one drill on 1210 level and on 680 with the second slated to start on 1210 very shortly. We're also planning for drilling, which is going to be happening on the 1410 and 900 levels later in the year.

Turning to Slide 25. We see Owl Creek, where we completed another 17 holes near the historic pit. Details for the main target and new holes are shown on the current slide. And as indicated, the pit is outlined in yellow, new holes favoring the center and west side. As indicated in our release, drilling here was very successful and included several highlight holes, including values such as 4.8 over 35.7, 3.45 over 25 from holes 18 and 09C in the center of the pit as well as 2.61 over 33.9, including 5.36 over 3 and 5.52 over 5 from hole 20, which was drilled on the far west side of the zone, where drilling at this point is still very limited. Given the above, we're very pleased with the progress to date and continue the program with 2 drills for the foreseeable future.

So next, turning to Slide 26. We see a planned view of the Borden mine, where we completed another 19 holes in the Northeast portion of the mine to infill and expand the main zone. Details for the drilling are shown on the slide and indicated all this was done on cut 5, 6 and 7 and the east part of the 585 drift, which sits about 200 to 300 meters annual to the target.

Looking at results, they're all very positive, holes generally confirming the overall shape and grade of the current resource, even adding a small extension on the east side. There are too many highlights to go through individually. I think it's worth pointing out that the ones from the expansion area has some of the best values, such as 16.97 over 14.7, including 21.76 over 10.8 meters, 6.64 over 12 and 8.24 over 15.2. Given all this, we feel Borden is in very good position for future exploration and resource additions and plan to have a very steady drill program ongoing here throughout 2026.

So next, turning to Slide 27, the Pamour, where we completed another 61 holes both near the current resource and in the new area we just started near the Broulan Trend, 1.5 kilometers to the west. New drilling near the current resource includes 60 new holes designed to upgrade and expand zones for future updates. And as with Q3, easily met expectations with multiple highlights, including 1.26 grams per tonne over 140 meters, 1.5 over 26.9 and 2.7 over 44.5 in holes at or near the bottom of the current pit shell.

Drilling at Broulan included 1 new hole, which [indiscernible] some very nice values as well in a similar geologic setting to Pamour, including 2.06 over 29.6 and 4.15 over 25. Important to note is that there are no current resources between this area and the Pamour pit. Drill program here is continuing with three drills focused on the east and west extensions of the current pit and at [indiscernible].

So then going on to Slide #28. We see the Dome, where drilling is now in progress and initial results starting to come in, looking very positive. And as previously described, this entire project is centered on the historic pit and mine site shown in the center of the slide, where we already have 11 million ounce inferred resource, but now working to upgrade and expand it for a new resource update later this year. In terms of the new drilling, the vast majority targeted southwest part of the resource pit with one hole targeting the area to the Northeast. For the area to the Southwest, drilling tested both inside and outside the current pit shell with key intercepts from inside, including 1.47 over 12.5, 13.64 over 6.5 and 7.17 over 5.6 and intercepts outside, including 1.61 over 28 and 4.86 over 18.5. For the area to the Northeast, the new hole tested adjacent to the historic mining and intersected 2.5 over 12.4 and 3.97 over 6. Drilling at the site is still continuing with one drill at the Northeast target and a second drill arriving later this month.

So then turning on to Slide #29. We see a summary of plans for 2026. And as indicated, we see a lot of the same projects continuing, but also a few differences and a much higher budget of 280,000 meters. We're just going through the list, starting with Hoyle Pond. We'll continue to focus on the S by adding new work at XMX and other -- and several other mid-mine target areas. Borden. The case of Borden is staying much the same as this year. For Pamour, our plan is to have -- continue to have a strong focus on infill drilling surrounding the pit, but at the same time, gradually increase work at depth and on strike, especially at Broulan. For TVZ and Dome, as expected, we will see a much higher budget from last year to complement the new resource update later in the year. And then finally, for regional projects, we're looking at 1 to 2 drills working steadily at Borden Surface and another 2 to 3 for Timmins, which will be shifting between Owl Creek, Hollinger - McIntyre and possibly the Paymaster.

So in summary, a lot of projects in progress, a lot of good results and a lot more to come.

So with that, I'll pass over to Jose Jabalera, our VP, Corporate Affairs and Sustainability in Mexico.

Thanks, Eric. Hi, everyone. So for our project in Mexico, Cordero project in Chihuahua, Mexico, we are in the final stage of the evaluation of our environmental impact assessment. So lately, we've been having a lot of meetings with the senior level in the government of Mexico, with SEMARNAT with the environmental authority and also with the Minister of Economy, Marcelo Ebrard. These meetings are being very qualifying where our target is. So we think that we are very close to get it or in the final stage of that evaluation and get our approval in the months to come. So -- also last week -- well, this week with a big visit of the Canadian Minister Leblanc to Mexico City. He was talking with President Sheinbaum, and they touched the things around mining and around permits that are already on trait.

So we think that, that will help us for our trait in SEMARNAT. So in the meanwhile, we are going and advancing work for use of natural gas or this evaluation because the grid power or natural gas. Also do a lot of work around the local water treatment plant, where we -- that we will get the water for our process. So in the meanwhile, we keep working on those things around the Cordero in the zone.

So thank you very much, and I pass the word to our CEO, Tony Makuch.

Okay. Thanks, Jose. Anyway, maybe you get the impression we got a lot going on. We can -- maybe we can spend a lot of time talking about operating results, and we've got a lot of really interesting things in operations, and what we can do in terms of increased production, lower cost and really create value. On the financial side, the company is well managed, strong balance sheet, generating cash. We're profitable in the first months and 2 months of operations and continue that on throughout the quarter. So a lot of exciting things there. And on the exploration side, we have all kinds of exciting things to talk about. We could probably spend a lot more time talking about the exploration upside here. And as I talked to Eric, we're 40 again in terms of the what you can do from an exploration point of view. I think from a -- speaking out to any geologist anybody looking for some exciting work and being able to be part of new discoveries, give us a call. We're happy to -- we've got lots going on, and we're happy to make a lot of investments. We're also doing a lot of pretty good engineering studies for growth. As Eric talked about with signing Dome, signing TVZ, looking at moving those forward, and we've got one of the best development projects in the silver space in Mexico at Cordero, and we're just waiting at the cusp of getting our approval to move that forward. The company is well financed and able to finance.

So at the start of the call, we talked about we're building a very special business. Hopefully, we can get that across to people and you can start to get the sense of the energy in the company and the people. We'll continue to generate excellent results and really continue to invest in this business and build value for our shareholders.

So thanks again for participating in today's call, and we'll be happy to take your questions.

[Operator Instructions] Our first question comes from the line of Cosmos Chiu with CIBC.

Maybe my first question is on the Hollinger open pit. I'm seeing that you're ramping up production from Hollinger in 2026. It seems to be contributing earlier than what we had expected. Is that -- especially if we were to compare it to the PEA that was put out a bit over a year ago now. Is that -- is my memory serving me correct, Tony?

Yes. I mean there's opportunity there. I mean Hollinger was a project that was being -- was stopped by -- completed by Newmont. There's still some work to do there, and we still felt that there's some additional mining that we can take place in its current form. We have a bigger plan for Hollinger over the next few years. And we think Hollinger can be a value driver for Holling McIntyre, a big value driver for another 50 years of gold mining in Timmins. But that's a whole other story. But we do see -- and Pierre might give a little bit of color, but at least this year and next year, some value from Hollinger. Correct, Pierre?

I guess, Pierre, could you give us a bit more numbers then, if possible? So in terms of like tonnage, what's the grade versus Pamour? I didn't get to visit it last year when I came out with you. Is there anything that needs to get done in terms of stripping or dewatering, so CapEx? And again, tonnage, your open pit tonnage, how much of that is going to come from Pamour versus Hollinger? Anything that could help us kind of refine our model, that would help.

So what we have at Hollinger, Cosmos, right now is mining about 6, 7 benches that were left behind. And that's what we're planning to do this year. So if you want to plug numbers in your model, you can use 2,000 tonnes per day. And the grade that we're planning at Hollinger is about 1.4.

And the strip ratio is.

Strip ratio is very low because essentially, it's been done before, so called 1:1.

And this is incremental to what you are mining out of Pamour, correct?

So yes, is the short version. Now what we're going to do is because the grade at Hollinger is more interesting right now than what we're mining at Pamour, and we're still limited by our processing capacity. We're going to offset some of the Pamour feed with the Hollinger.

[indiscernible] ready stockpile.

So there will be a stockpile material from Pamour. But that being said, we're still planning to process more next year, 2026 than what we've done in 2025.

And then as you mentioned, strip is pretty low. So CapEx is -- not a lot of upfront CapEx that I need to consider.

Not a whole lot.

Yes. And the permitting, there's no permitting -- all the permitting you have in place and everything is okay.

Correct. Everything is in place to continue mining. And actually, we started mining in January.

Perfect. Maybe switching gears a little bit, going to Cardero. Certainly, it sounds like it is exciting and from what Jose is saying. But I guess my question is, I believe you're still working towards kind of a new technical report to update us on the numbers at Cardero. And Tony, to the extent they can kind of share with us, what can we expect? Is it going to be an update to your CapEx, or any other areas that you're updating? Throughput, would it stay about the same? Anything that you can share with us? I think that would be...

Well, I think the biggest thing, Cosmos, is we've got to update the CapEx. There's some -- we got some -- a little more detail on a few areas such as water treatment and power, some other areas, we were taking a little bit of time looking at security at site, et cetera. But I don't know if there's anything else, [indiscernible] that you could add to that or that's pretty much what we're looking at. We're not looking at sort of a whole updated feasibility study. I think we've done a very, very good job on our current one. It's more that.

The only change in scope from the '24 will be looking at gas grid power. So we're still doing some evaluation of that right now and probably come to a decision point in the second quarter of this year. But aside from that, we're looking at the same size of plant, a very similar mine plan I suppose some more advanced work that we've done on the water treatment [indiscernible] very similar scope and so the focus is really on updating the CapEx for our financing budgeting purposes.

And then in terms of timing, when are you expecting to provide us with that new technical report?

We're still sort of talking through that now. And I mean, obviously, it opens up a bit to go through a full technical report process. So I think it's an internal exercise for now. And then if anything is released, it wouldn't be until the second half of this year.

Or let's just say, 3 months -- 3 to 4 months after we get our permit.

Okay. And then maybe one last follow-up question on Cardero. You've kind of allocated $90 million to $100 million in terms of CapEx for the project in 2026, a part of which is fees required for permits. Could you maybe break that down for us? How much of that $90 million to $100 million is related to fees, and how much is related to engineering studies and other things that you're working on at?

Go ahead, Alison.

Sure. So Cosmos, this is Alison. The fees are high. The fees are a vast majority of that, just as you mentioned, of the $90 million to $100 million. And roughly, the fees are between $70 million and $80 million dependent on the final outcome of the ratios that are required as a part of the calculation for the overall payment that has to be made that won't be finalized until later this year when we actually receive the information about the permit.

And what's that for again, the $70 million to $80 million? And is it higher than what you had expected previously?

So it's for the land use permit, and it is higher than what we had initially anticipated. The government goes through an annual process to update the required calculation for the fees, and this utilizes some of those most recent updates.

Our next question comes from the line of John Tumazos with John Tumazos Very Independent Research.

How many meters of snow do we have up in Timmins this week? And should we expect the tonnes per day to be maybe 1,000 tonnes a day less for the first quarter simply because it's harder to move surface material.

Well, it's probably about 2 meters of snow total accumulated met anyway. But I don't think the snow -- it's winter country, it's winter people, like the snow doesn't stop operations. I think maybe some other things. But I don't know, Pierre, we're going to have less throughput this quarter than last.

Well, there's the usual planned shutdown, right? But if you want to compare the first few months of 2025, compare that to what we've done in 2026, we're ahead of what was done in January, February last year.

So being better than Newmont is good, but are we as good as 9,700 tonnes a day in the fourth quarter?

Well, our goal this year to do approximately -- I think, it's somewhere around 3.7 million, 3.8 million tonnes of processed throughout the year and try to increase that again next year. All of its availability and utilization of the plant, combination throughput, but we got to do it in short. I mean we have more ore stockpiles on surface than we have mill capacity right now. We could probably shut the mines down for 3 months and still keep the mill running if we want. So our issue is processing. But we -- in terms of processing, we don't want to run increased throughput and impact metallurgical recovery. So we're trying to do things the right way.

To that point, John, as you heard today, we're spending money -- worth of capital money in the mill to improve our process over there. So yes, 3.7 million tonnes, but our objective is to go back to that 12,000 tonnes per day and exceed that.

So the permit is 15,000 tonnes a day. And when we made repairs in April and July, I thought there were days of 12,500 tonnes a day. But on a sustained basis, we struggle to do 10,000 tonnes a day, and we're mill constrained.

No. So we could get -- we do do 12,500 tonnes per day even better on any given day, but part of it is reliability of the plant and maintenance, et cetera. So you got to look at availability and utilization combined with the numbers, John. So whenever we do run, [ Gord ] is on the phone, but those are the rates that you try to turn on and then things happen, right? And/or we have maintenance shutdowns, et cetera. So in order to achieve the rates we want, those are the type of rates we've got to run at a nominal capacity in order to achieve the final numbers on an average basis.

Is Gord going to make a comment?

You're going to make a comment, Gord?

I can make a comment. We are working towards the 12,000 tonne per day average over 365 days, John. We're not there yet. We still have another year of maintenance work to do in here. We're probably almost halfway through what we had planned to get done, but we are not done yet. And we will beat 9,700 tonnes a day in the first quarter guaranteed.

So looking ahead a few years, maybe 5 or more, there looks like there's enough ore for 75,000 tonnes a day if you restart all the pits full.

Yes.

How is it -- what are the next stepping stones to increase? For example, can we get quickly to 25,000 tonnes a day by dropping a used SAG mill into the existing mill, an extra ball mill, flotation tanks, et cetera. Do we buy the neighbor down the road? Or do we just write a big check for $500 million and build a 30,000 tonne a day mill like Cordero twice. What's the way to get big?

Well, all those are iterations of things we're working on, John. And in the end, we talk about the exploration, and we're drilling to find more stuff and you say we can mine probably, we can stockpile Pamour more while we're mining Hollinger stuff, and we can be selective in terms of putting the highest grade through. But ultimately, we don't want to be building big stockpiles and having the money tied up in inventory. So our goal is to increase mill capacity and increasing mill capacity is what helps us to get to the higher production levels in spite of any exploration success, and you throw that on, and that's why it's an exciting company. And yes, it's not going to happen in 6 months, but it's not going to take us 10 years either to get when you talk about 50,000 tonnes a day milling capacity. It probably be a reason to think that that's probably what we need in tenants over the next few years. And we have a lot of initiatives we're working on to try to get there. I wish it would be as easy as just dropping in a new SAG -- I use SAG mill in front of the mill and just drop a new engine in a car and put your foot on the gas, but there's a little bit more to it than that. I agree with you, and you're right on track.

In terms of Mexico, [ Wheaton ] said on their call Tuesday morning that counting reserves and measured and indicated but not inferred. They were paying $60 an ounce for the silver in the ground at [ Antamina, ] plus $15 or 20% of spot for the stream. So they invested to buy in at a $75 an ounce breakeven. That makes the 230 million ounces of production based on your old feasibility study at $22 silver look awful good, as though Cordero is worth more than Discovery is. If the permit comes this quarter, and I guess people are going to throw money at you based on what Wheaton Precious Metals paid, how quickly can we pour silver in Chihuahua by the first of '29?

The feasibility study had about a 2.5-year building. Yes, if we're now, then I would pretty close to that, right?

And John, just to add on to that, I would just clearly say financing is not the limitation there as you well know. And so that won't be a hurdle in order to get moving on the construction side.

Next question comes from the line of Rabi Nizami with National Bank of Canada.

I just wanted to ask you about your 2026 guidance and particularly the cadence of how we expect to see the year play out on a quarter-by-quarter basis. You've mentioned that it's an H2 weighted ramp-up in terms of production and costs commensurate with that. So could you tell us a bit about what's driving that? Is the production more driven by throughput going to the mill? Or is it more of a grade factor? If you could give us a bit more color on that?

I talk about that here -- well, in terms of throughput, you're correct. It's backloaded towards the end of the year rather than front end. In terms of expenditures, we still have high capital costs. I think there was a slide on that...

Or the guidance number. The capital cost is in the first part of the year and the production is in the second.

You should see -- so like you've seen in -- from Q2 to Q3 to Q4 in 2025, you see sort of the same type of Q1 2026, Q2, Q3, Q4, incremental increase quarter-over-quarter and same thing on the cost side, incremental decrease quarter-over-quarter as we progress. And we have a lot of other initiatives, and we -- in terms of other things that should help us reduce costs and improve productivity. Those are the kind of things you should expect quarter-over-quarter. So maybe we're at the top end of the guidance and low end on the guidance on the production rate in the first quarter. And by the last quarter, we're probably equal or beating the guidance on both costs and and production rates.

And in terms of just capital allocation through the year, obviously, with a heavier CapEx spend in the first half and the tax payment in Q1 as well. And well, hopefully, we also see the tax payment also -- the land transfer payment in Cordero as well. So with that, how are you thinking about your liquidity position? And what would be the conditions under which you would consider drawing on the revolver? Is that something we'll see through the year?

Yes. So Rabi, we are definitely keeping our eyes on that, I would say, almost every day and utilizing what we have. We still anticipate having a very strong liquidity position at the end of 2026. Because we are -- we run multiple different scenarios through our budgeting process at various different gold prices, and it will depend -- be highly dependent on the price of gold. And -- but in any scenario, whether that's a spot price, a short-term consensus price or a, call it, downside case from short-term consensus, we have a significant amount of liquidity between the revolver and just regular cash flow generation to support what we have put out in our guidance.

But really on the question though, too, there, if, let's say, the price of gold stays where it is today, we could advance all of our projects, advance -- even begin advancing Cordero and still building our cash position. So not drawing our big part of our business is, I mean, we're working towards positioning ourselves as being -- we want to be in the lower half of the cost curve in the industry. So we've got to pull our costs down. Some of that is improvements in infrastructure, et cetera, and it's also an improvement in productivity. And that's our goal, and that's how we want to have to differentiate ourselves from a value proposition point of view.

Our next question comes from the line of Jake Savage with Agentis Capital.

Congrats on another strong quarter of production and exploration at Porcupine. Just given a few of the things you've talked about, the pits ramping up and the mill ramping up, can you walk us through how you're planning to optimize the overall mill feed grade at the Dome mill? Are you looking at adjusting the blend with Hoyle Pond and Borden, given the ventilation upgrades and mobile equipment upgrades, are things tracking pretty close to the PEA, or are you increasingly selective?

Right. So for 2026, we're going to track pretty well, if not in excess of the PEA for the two underground mines. The bulk of the feed, of course, is coming from Pamour in the PEA. And in our case here, we're basically adding some from [indiscernible]. So the total blend here, we're trying to keep close to 40%, 45% from the underground and the rest is coming from the open pit.

Our last question comes from the line of John Tumazos with John Tumazos Very Independent Research.

So Gord, whenever you're doing under 10,000 tonnes a day instead of 12.5, what are the parts that break down and limit the production?

Well, John, we had some issues with our screen decks in the secondary crusher. Our supplier made some changes to new screen decks and didn't inform. It turns out we had to go back to the old style. So that is our biggest issue that we've had in the last quarter and the first 2 weeks of January.

Is that fixed?

That's fixed, and we have new screens coming. So we rehab the screen that was in place. We have a spare screen that we also rehabbed and made the changes to with Metso, and Metso is building us a new screen right now. So our lower tonnage is -- when we're running, we're running at very high rates. Problem is keeping it running for the full month. So it's our utilization. It's the availability. So we've had two issues in January. We had a conveyor belt issue, and we had screen deck issue, which are both fixed now.

When you stop at 12,500 tonnes a day and don't get to the 15,000 permitted level, what's the next bottleneck?

So above 12,000 tonnes a day to get to 15,000 are -- we would need some horsepower and grinding and some more leach retention time and the thickener. Thickener would need to be upgraded.

So when do we go and apply for a permit to raise the 15,000 tonnes a day? And do we raise it to 25,000 or a bigger number?

Well, that would be a tony question, I think.

Yes. John, these are all things that exactly what we're working on the concept of the scope of that. I mean we're looking at other alternatives as what do we -- as you talked about earlier, do we upgrade this plant? Do we build a new plant somewhere? Do we take advantage of some other plants in the area, have a combination thereof. And focus in those directions. It is number -- it is as big a priority to us as the exploration and the production. So the development and growing that is very important, and it's things that we're working on, right? So it's going to unlock a lot of value. If we get another 15,000 tonnes a day of milling capacity, we're not going to have to wait for that long for feed to feed that plant. And it would be incremental to what we do. And so very, very quick payback on any of that kind of stuff.

John...

To Tony's point here, as you know, Pamour is limited by the mill capacity right now. So once you remove that constraint, Pamour can offer and deliver a whole lot more than the 10,000 tonnes per day that is in the PEA.

A year ago, when you made your presentation March 2nd in Toronto, I just assumed that you would build the Cordero mill twice and drop a 30,000 tonne a day mill right into dumb. And now a year has passed, and we haven't added a lot of capacity. We're still refurbishing. But if you announced the 30,000 tonne a day new mill and let a couple of contracts, the two neighbors down the road that don't want to sell you the mill, they'd be paying you to take it because they missed the boat. So why don't you just go ahead and announce a big new mill?

Well, I mean, that's -- to announce a big new mill, it requires big new tailings areas. It requires power, it requires water and it requires permits. And John, the other aspect of it is to announce a big new mill like that, you're going to -- you could -- because of the size of the footprint, you could be creating like a permitting thing issue and time on permitting, whereas if we can do some incremental things with a few other selected locations, we might -- it might be more strategic for us. But when we can announce it and then the time we announce and the time to get it into production and built might be the same, and that's what we're working towards, John.

July 15, the town last year appropriated CAD 27 million to move the water tower and the water treatment plant to help you expand the Hollinger pit. Everybody is rooting for you. Everything is easy, isn't it?

Yes. We're moving it, boy. And we talk about what the opportunities are, you can see the drill results, and you're bringing up a lot of the opportunities around -- to me, it's nice that that milling capacity is our problem. Sometimes you just don't find the ore we're there, and we got the right market, right? The price of gold, metal prices are high, and we have earnings we're generating cash flow. So we have to finance the money to invest back into the business. And we're working on all these things in stages. I would expect as -- John, as the year progresses, there's going to be a lot more clarity on that. That is a big value driver, as much a value driver as exploration success as development success and the mines as they build the mill. And so what we said in November last year, what we would have said in April of last year is still the goal. We have the opportunity to stabilize and get long-term production from Pamour and Porcupine and Borden. We have the opportunity to build at least two new mines at TVZ and Dome. And so -- and we have the opportunity to discover new resources and even expand upon that. You're seeing some of those results already. And we said we were going to try to increase our current mill capacity. We're working on that and trying to get that up to just I can say, around 4.3 million, 4.4 million tonnes a year on our current mill. But that doesn't -- the real solution is to get new capacity. We still got to keep our current business in good form and get our costs down and keep that running while we're working to make the right decision in terms of how we grow our production and our mill throughput.

Thank you all for your service. I just want to buy season tickets for the Discovery arena, and I don't want you to wait too long. I want to be in good health by the time it's built.

No problem. All in the same boat. The clock is ticking, right?

And that concludes the question-and-answer session. I would like to turn the call back over to Mark Utting for closing remarks.

Thanks, operator, and thanks, everyone, again for taking part in today's call. As you heard, there's a lot of exciting things going on. There's a lot of energy, and we think we've got some pretty compelling catalysts right in our very near term here. So there's a lot to talk about, and we look forward to having our next update so we can tell you about our additional progress. Thanks again.

Ladies and gentlemen, that concludes today's call. Thank you all for joining in. You may now disconnect.