G Mining Ventures Aktie

Good morning, and welcome to G Mining Ventures Second Quarter 2026 Results Conference Call. [Operator Instructions] Please note that today's call is being recorded.

I will now turn the call over to Jean-Francois Lemonde, Vice President, Investor Relations.

Thank you, operator, and good morning to everyone joining G Mining's 2026 second quarter operational and financial results conference call. In addition to myself, we have on the line Louis-Pierre Gignac, Chief Executive Officer; and Julie Lafleur, Chief Financial Officer and VP Finance. I would like to remind everyone that after management's remarks, the call will be followed by a Q&A session.

As we will be making forward-looking statements during this call, please refer to the cautionary notes and risk disclosure in our MD&A and on Slide 2 of the webcast presentation. Also, please bear in mind that all dollar amounts mentioned during the call are in U.S. dollars unless otherwise noted.

Now I will turn the call over to Louis-Pierre Gignac to provide an overview of the quarter.

Good morning, and thank you, JF, and thank you, everyone, for joining us today. I want to start by recognizing the dedication of our teams across all our sites, whose commitment to safety, operational excellence, and responsible mining continues to drive our success. Q2 2026 was a strong quarter for GMIN, operationally, financially, and strategically. Tocantinzinho delivered a solid quarter, and construction of Oko West is advancing in line with plans.

Strategically, GMIN closed the transformational acquisition of G2 during the quarter, consolidating GMIN's Oko West and G2's adjacent Oko-Ghanie project into a single large-scale and long-life Tier 1 gold mining complex. Importantly, TZ continued to deliver in the quarter, producing 36,845 ounces, a 16% increase over Q1 2026, with 37,439 ounces sold. The improvement was driven by a higher-grade mining sequence and stable mill performance as we advance towards accessing the higher-grade Phase 2 mineralization.

Free cash flow grew more than 50% to $85 million quarter-over-quarter, generating approximately $2,300 of free cash flow per ounce of gold produced. Throughout the year, we'll remain focused on protecting margins and maximizing the free cash flow generated from every ounce we produce.

Second quarter gold production exceeded plan, supported by higher grades and strong metallurgical recoveries. TZ maintained plant performance during the quarter, processing just over 1 million tonnes of ore at an average throughput rate of 11,120 tonnes per day. The average process grade was 1.23 grams per tonne of gold with an average recovery of 91.9%. Mining activity also remained strong with a record 6.3 million tonnes of ore and waste extracted from the open pit during the quarter, representing a 15% increase from Q1 2026. The corporation maintains its 2026 production guidance of 160,000 to 190,000 ounces, with approximately 61% of output expected in the second half of 2026 as higher-grade material is accessed in accordance with the mine plan.

Safety performance remained strong at TZ and across all projects during the quarter as GMIN recorded 0 lost time injuries.

We continued to deliver strong margins during the quarter, supported by a record average realized gold price of $4,197 per ounce and all-in sustaining costs of $1,690 per ounce sold. Q2 2026 cash costs of $1,046 per ounce sold were 1% higher than Q1 2026, while all-in sustaining costs increased 6% to $1,690 per ounce sold, largely reflecting the impact of a stronger Brazilian real relative to the U.S. dollar.

As a result, we have revised our full-year 2026 cash cost and all-in sustaining cost guidance to $836 to $965 and $1,330 to $1,544 per ounce sold, respectively, compared with previous guidance of $736 to $865 and $1,230 to $1,444 per ounce sold. The revisions primarily reflect the impact of the stronger Brazilian real on our cost base.

I will now invite Julie to take you through the financial results, cash flow and balance sheet.

Thank you, Louis-Pierre, and good morning, everyone. During Q2, GMIN delivered excellent financial results, reflecting the quality of our asset portfolio, solid operational execution and continued leverage to the gold price. Second quarter revenue rose 21% year-over-year to $157 million, driven by 37,439 ounces sold at an average realized gold price of $4,197 per ounce. For the 6 months ended June 30, 2026, GMIN also reported higher revenue growth, returning 31% increase year-over-year, reporting $297 million in revenue for the period.

Net income reported for the quarter grew by 48% to $72 million, or $0.30 per basic share, compared to net income of $48.6 million, or $0.21 per share, for the same period last year. On an adjusted basis, net income was $79 million in the second quarter, or $0.33 per share, versus an adjusted net income of $36.5 million, or $0.16 per share, reported for the second quarter of 2025. Adjusted net income excludes a $1.4 million unrealized foreign exchange loss, a $4.9 million loss on the change in fair value of financial instruments, a $0.4 million deferred income tax expense and a $0.5 million present value adjustment on VAT receivables.

Second quarter EBITDA was $106.9 million, and adjusted EBITDA was $113.7 million, both metrics performing better than the same period last year. TZ continues to generate strong free cash flow, demonstrating its strong margin profile as we advance Oko West and our fully funded exploration programs across the portfolio.

Cash generated by operating activities was $104 million in the quarter, with free cash flow of $85 million after accounting for sustaining capital and other adjustments. During the quarter, cash used in investing activities was $153 million, primarily reflecting Oko West construction spend. Cash and cash equivalents decreased from $287 million at March 31, 2026, to $226 million at June 30, 2026, reflecting continued heavy investment at Oko West during a peak construction period.

We moved from net cash of $248 million at the end of Q1 to net cash of $193 million at quarter end, a strong balance sheet position as we fund Oko West through the remaining construction period. Including the undrawn $350 million revolving credit facility, available liquidity was approximately $576 million.

Capital expenditures were approximately $158 million in the second quarter of 2026, comprising of $10.6 million of sustaining capital, $8.3 million of capitalized waste stripping, $8 million of capitalized exploration expenditures and $131.3 million related to development activities at Oko. For the first 6 months of 2026, capital expenditures totaled $266.2 million, comprising of $12.9 million of sustaining capital, $18.9 million of capitalized waste stripping, $0.8 million of sustaining exploration, $13.9 million of capitalized exploration expenditures and $219.8 million related to development activities at Oko.

Oko West capital guidance remains unchanged with $514 million to $568 million expected in 2026, and $217 million to $240 million expected in 2027. At Oko, cumulative spend to date reached approximately $423 million, or about 44% of the approved initial capital budget, leaving $550 million remaining to be spent through completion. Total commitments reached approximately $628 million, or 65% of the approved budget. This continues to be a meaningful derisking point with nearly 2/3 of the initial capital budget now in committed scope.

For the 6 months ended June 30, 2026, GMIN achieved approximately 39% of full-year gold production guidance, which was in line with mine plans. Our 2026 production guidance remains unchanged at 160,000 to 190,000 ounces of gold. Total cash cost guidance and AISC has been revised upwards, as previously noted, to $836 to $965 per ounce sold and $1,330 to $1,544 per ounce sold, respectively.

For 2027, production guidance remains unchanged at 200,000 to 235,000 ounces of gold, with total cash costs expected to decline to $633 to $743 per ounce sold and AISC expected to decline to $977 to $1,146 per ounce sold. The 2027 profile reflects a full year of higher-grade Phase 2 contribution, lower sustaining capital compared with 2026 and continued operating maturity at TZ.

This concludes my remarks. I will now turn the call back to Louis-Pierre to discuss Oko West and Gurupi.

Thank you, Julie. Oko continues to advance on schedule and on budget during the quarter. At the end of Q2, overall project progress reached 28% on an earned value basis. Detailed engineering continues to advance on schedule and remains on track for completion in Q3 2026, while procurement is approximately 99% complete. On site, construction is advancing on schedule across the key work areas, including the process plant, power plant, tailings storage and site infrastructures.

The power plant remains on track to be operational by the end of July 2027, and the grinding mills by August 2027, with major component deliveries continuing on schedule. Key achievements during the quarter included continued concrete pours across the power plant, SAG and ball mill foundations, primary crusher, CIL, CIP tanks, and pre-leach thickener.

Other key infrastructure work streams also advanced, including the permanent camp, which now has more than 1,400 beds, with the welcome center, kitchen and dining hall all operational. The workforce also continued to grow during the quarter. Site personnel now totals 1,779, with Guyanese nationals representing 77% of the workforce, and cumulative hours worked exceeding 2.3 million hours to date.

I would like to take a moment to share some visuals of our progress on the ground as of June 30, 2026. Our power plant continues to advance well with more than 1,350 cubic meters of concrete poured to date and structural steel framing for the engine hall now complete. All 6 generators have been delivered and are being stored at our barge landing facility. The SAG mill foundation is complete with anchor bolts and embedded plates in place, while the first concrete pour for the ball mill foundation is planned for August. The primary crusher has also advanced significantly with the mat foundation concrete pour complete, and rebar and concrete work for the first level scheduled to begin in August. Progress on the pre-leach thickener also continues with construction of exterior rings 2 and 3 now more than halfway complete.

The current Oko West project remains on schedule with first gold targeted for the second half of 2027, with commercial production expected in January 2028. An updated feasibility study integrating Oko West and Oko-Ghanie is targeted for mid-2027. In support of the study, we plan to complete definition drilling at Oko-Ghanie and advance technical studies to optimize mine sequencing and throughput for the expanded project. The integrated development plan is expected to support an expanded production profile in 2029.

I will close with a recap of our priorities for the remainder of 2026 and into 2027. At TZ, our priority for the second half of the year is to execute on the planned production profile while driving lower unit costs. Key areas of focus include advancing access to Phase 2, improving mining productivity, building drilled and blasted inventory, optimizing throughput and recoveries and executing sustaining capital programs.

At Oko West, execution remains focused on key project milestones, including mill deliveries, power infrastructure, camp expansion, process plant construction and advancement of the tailings storage facility. At Gurupi, the key deliverables are the updated mineral resource estimate, the preliminary economic assessment and the ESIA filing, all of which is targeted for year-end. With the G2 transaction now complete, we can focus our attention on advancing the technical work required to validate the combined district plan to establish a Tier 1 production profile.

We are entering this next phase with a stronger balance sheet, a producing mine generating steady cash flow and a Tier 1 asset advancing through construction and strengthening our district position in Guyana, and Gurupi moving toward key catalysts. We have the assets, liquidity and team required to execute this next phase of growth.

With that, I would like to turn the call back to the operator for questions.

[Operator Instructions] Your first question is from Ralph Profiti with Stifel.

Louis-Pierre, is there going to be any operational impact that comes from this implementation roadmap on some of the tailings governance works that was delivered at TZ in June of 2026, or perhaps impact to growth CapEx or sustaining CapEx? I'm just trying to get a sense of whether or not these assessments are within sort of manageable expectations.

And you're referring to TZ, right?

Yes, sir.

Yes. No, I mean, right now, as part of our sustaining CapEx for this year, we're doing a tailings raise to the flotation tailings facility that we have. But that's all been permitted, and it's going according to plan in terms of costs. And yes, we're even permitted beyond the raise that we're doing right now to basically another subsequent lift. So there's no real permitting challenges or issues in front of us.

Okay. Great. Great to hear. And then moving to Oko, seeing as we're 90% on detailed engineering and essentially there on procurement, I'm wondering if you're taking advantage of ordering some of the long lead for the potential expansion case and whether or not it's possible that we can see some of that spending time line that's going to come on for that production actually amalgamated into some of the spending that gets committed in, say, 2027?

Yes, that's a good question. Obviously, we're looking at the long lead items that we would need for the expansion as we speak. And actually, we expect to place orders before the end of the year for some of those long lead items, and that's in particular another ball mill and some additional gen sets that would be required to power an increased site. So that will be small money really this year, which would be like milestone-driven payments for the down payments on those equipment this year.

Your next question comes from the line of Andrew Mikitchook with BMO Capital Markets.

Just a follow-up on Oko. I appreciate you guys giving us guidance that you'll have the combined mine plan happening. But as you've indicated, you're thinking about ordering long-lead equipment. Are you in a position where there could be short-term changes to the mine plan, or even the sequence of mining or stripping or stockpiling well ahead of that?

Actually, there likely could be, in the sense that we've received authorization from the government to start some initial mining in Ghanie. So that's going to allow us to do some optimization to the mine plan and, yes, make a few changes, but basically, we still need to go through a permitting process with the government to basically make an amendment to the permit that we have. But yes, we have been granted already some flexibility that will allow us to make some optimizations there.

Okay. And maybe just a quick follow-up on the Oko, in terms of things that we should expect to see on your monthly photos and on your PowerPoint updates, what are the big kind of key deliverables in terms of activity on site or stuff being pulled up out of the ground, equipment arriving on site that we should be watching or that your managers are watching in the construction process so we can follow along?

Yes, so basically you've seen some of the monthly photos, and a lot of concrete's been poured for the process plant. So now they're going to be starting erection of tanks, tankage as part of this leach and CIP circuit. So that's going to be one thing that will show a lot of progress. Obviously, the primary crusher, we're pouring foundation, concrete work for the caisson. And then obviously, one priority for the team is the assay lab. So we want to get that built so that we can do our grade control on site and have quick turnarounds. So that's a key priority for the construction team.

But yes, other than that, we expect to be receiving -- continually receiving equipment related now to the process plant. And as we speak, our mills are on the water being shipped to Guyana. So that's one milestone that was very important to achieve, and that's been achieved now.

Your next question comes from Anita Soni with CIBC.

I just wanted to ask about the cost guidance for next year. So you raised this year's cost guidance, but there was no impact to next year. Is there a reason for that?

Yes, I'd say we -- part of the increase that we made here is related to FX and gold price. So I think we'll just wait to see further how those metrics change for us by the end of the year. So, yes, essentially $100 of that increase is -- more than half is related to FX and royalty costs with a higher gold price assumption. So -- yes, so we'll just take a pause and wait to see how that could potentially impact '27.

Okay. So it's just typical budget assumption changes then?

Yes.

[Operator Instructions] And your next question is from Andrew Mikitchook with BMO Capital Markets.

Just a quick follow-up now on TZ. This grade profile that we should be expecting as Phase 2 is in a better portion of the sequence. Is it flat? Is there variations specifically in the next quarters but even into next year?

Yes, I'd say it's likely not flat. We'll likely have an increase in Q3 and maybe likely another small increase in Q4. But that's part of what I would say the site team is looking to try and smooth out, so -- just so that we're not kind of waiting on Q4 to get those additional ounces out. But yes, so far, in July, we're seeing the benefits of Phase 2 ore coming. So yes, we're on track with seeing that plan come to life.

Your next question is from the line of Ray McCormick with Capstone Partners.

Yes, I was wondering if you could tell me what the estimated commercial production will be for the year 2028 at Oko West?

Oko West, '28, we're looking at 315,000 ounces. And that's basically just in line with our feasibility plan because we're really tracking closely to that feasibility plan...

And what kind of grade? Sorry for interrupting.

Yes, I was just saying, then we see that profile increasing, and then we do have underground ore that then kicks in like year 3, 4 and then the profile keeps increasing then.

Okay. And what's your -- what would your grade be for '28, let's say?

Yes, just give me a second there. But yes, if you refer to our feasibility study, that's really the expectations that we have right now in terms of our plan. So I don't have it in front of me, but that would be the document I would refer you to, and we can send that information to you.

And you have a question from the webcast. When will the exchange of shares of G Mining Ventures for G2 Goldfields be completed for U.S. holders of GUYGF? The transaction is not completed despite the representation that has been made.

Yes, I think that process is typically finalized with the brokers. So yes, it's not something that we really control, that process. But yes, on our side, everything's been executed and completed. And yes, maybe brokers have yet to do their administrative process on their end.

We have no further questions at this time -- I'm sorry. We do have a question from Rabi Nizami from National Bank of Canada.

Just quickly on Gurupi, you did mention that you have a resource update and a study coming up later in the year. So could you give us a bit more color on that? Obviously, you've drilled quite a lot since we last got an update on the asset. So could you give us some kind of a framing on how we should think about that study that you're planning to put out later this year?

Yes, so as you know, we're drilling on the property right now, looking to build up the resource base ahead of the PEA. So yes, we will likely be producing an exploration update that's, well, Brazil-focused, so Gurupi and TZ, sometime in September. And we'll do a follow-up one for the greater Oko also probably later in September. So that will give you a bit of a flavor for some of the locations that we've been drilling, looking to increase the resource. So we want to let that program run its course and be able to build in those resources into the PEA.

So we're targeting really at the end of the year for releasing the PEA results to be able to really benefit from the maximum input from the drill program. But, yes, we're looking at a plant that -- just high level, a project that would be slightly larger than TZ is what we're anticipating.

Got it. And speaking of TZ, I think a lot of the questions have already gone over some of this, and we talked about the grade profile being a bit variable. What about the stripping rates and the mining rates? Obviously, you've seen an increase in the mining rates with the larger fleet. Do you expect to continue to increase mining rates in the next few quarters, or are we going to hold steady here for a bit?

Yes, it will likely increase a bit more in Q4. Just as part of the equipment that we've purchased as part of the sustaining CapEx, we have 2 additional trucks that have come in, and we're still waiting on a front-end loader that will complement the loading fleet. So yes, we expect that will increase again somewhat.

I'll just ask one final one on Oko West. Can you tell us a bit about how you're doing with hiring in Guyana with labor availability and how well you're staffing up at that project? And how many people do you expect to have there maybe towards the end of the year?

Yes, so we basically have been hiring every month. So like just -- I think the month of June, we had a large increase in people. We're basically just shy of 1,800 people working on the project. So we've been successful in hiring people. As you know, Guyana is a small population, so sometimes we scatter the net a little wider to find the qualifications that we need, so Suriname and -- well, CARICOM in general has been a talent pool that we draw from, and we also have a lot of expats within the G Mining services team that are supporting the project.

So all in all, the HR team has done a fantastic job in recruiting all the people required for the project. But yes, we expect that will continue to increase all the way till the end of the year and likely getting close to 2,000 or exceeding 2,000 people on the project.

And with no further questions in queue, I will now hand the call back over to Jean-Francois Lemonde for closing remarks.

So thank you, everyone, for joining the call and talk to you next quarter.

A replay will be available on your -- on our investor relations website within 24 hours. Please reach out to the IR team with any follow-up questions. Have a great day.

Hello, and welcome to the Annual Meeting of Shareholders of G Mining Ventures Corporation. Please note that today's meeting is being recorded. If you participate in today's meeting and disclose personal information, you will be deemed to consent to the recording, transfer and use of same. If you disclose personal information of another person in today's meeting, you will be deemed to represent and warrant to Computershare and the corporation that you first obtained all required consents for the disclosure, recording, transfer and use of such personal information from all appropriate persons before your disclosure.

[Operator Instructions] It is now my pleasure to turn today's meeting over to Louis Gignac.

Mr. Gignac, the floor is yours.

Good morning, ladies and gentlemen, and welcome to the Annual General and Special Meeting of Shareholders of G Mining Ventures Corp. I now call the meeting to order. My name is Louis Gignac, Sr., and I am the Chairman of the Board of Directors of the corporation.

In accordance with the corporation's bylaws, I will act as Chair of this meeting; and Marc Dagenais, our Corporate Secretary, will act as Secretary of this meeting. Before proceeding with the formal business of the meeting, I would like to set out a few rules for its orderly conduct. [Foreign Language]

We just thank all shareholders with us today and advise that while the meeting will be conducted in English only, shareholders are welcome to speak and ask questions in French during the meeting. The business to be conducted at this meeting is set out in the notice calling the meeting and the management information circular, which were delivered in advance of this meeting to shareholders of record on May 22, 2026.

The only persons who may vote or take any other action at this meeting are registered shareholders as of May 22, 2026, or their duly appointed proxy holders or authorized representatives present in person here or via live webcast. The scrutineer has advised me that the proxies voted in favor of the various matters to be decided at this meeting have already been received and that there are no shareholders present in person or represented by proxy here or via live webcast who are entitled or have requested to cast a vote on any of such matters during the course of this meeting.

We will now proceed with the formal portion of today's meeting. To expedite matters, I will move all motions and will not require a motion to be seconded. With the consent of the meeting, Lesley Anne Alano of Computershare Investor Services will act as scrutineer of this meeting and tabulate the votes taken at this meeting and report the results to me and the Secretary.

The purpose of today's meetings are fivefold. One, is to receive the annual consolidated financial statements of the corporation for the financial year ended December 31, 2025, and the auditor's report; two, to appoint PricewaterhouseCoopers as the external auditor of the corporation and authorize the directors to set their compensation; three, to elect directors for the next year; four, to approve all unallocated awards under the corporation's Omnibus Equity Incentive Plan; and five, to approve on an advisory nonbinding stated basis, the corporation approach to executive compensation.

Detailed information regarding each of these matters has been provided in the circular. The secretary has provided me with proof that the notice calling the meeting, together with the circular and related materials were mailed to all shareholders as of record date for this meeting. In accordance with the applicable law and the corporation's article and bylaws, I direct that proof of service be annexed to the meeting minutes and these meeting materials are also available under the corporation's profile on SEDAR+. With your consent, I will dispense with the reading of the meeting notice.

At this point, I will review the preliminary scrutineers' report. The report shows that there are at least two holders of shares entitled to no less than 25% of the votes attached to all issued and outstanding shares who are present in person or represented by proxy here or via live webcast.

Accordingly, the scrutineer has certified that the quorum is present at this meeting. I would ask him to prepare his formal report and deliver it to the secretary before the end of this meeting. I would also direct the secretary to retain such report in the records of the meeting. With appropriate notice having been given and quorum being present, I declare this meeting duly constituted and ready for the transactions of business as set out in such notice. The first item of business -- the statements are available on SEDAR+ and were mailed to shareholders who have requested a copy. Additional copies are available upon request.

While it is not proposed to ask shareholders to approve the statements, we will be pleased to deal with any questions concerning them after the formal business of this meeting. Since you have all received the auditor's report together with the statements, I will dispense with reading of such report. The next item of business is the appointment of the corporation's auditor for the next year. Shareholders are asked to appoint PricewaterhouseCoopers, chartered professional accountants as auditors of the corporation to hold office until the close of the next Annual General Meeting and to authorize the directors of the corporation to set the auditor's compensation.

The appointment of -- this authorization must be approved by a majority of the votes cast by the shareholders present in person or represented by proxy and entitled to vote. I have received the scrutineer's preliminary report on voting in respect of the appointment of PricewaterhouseCoopers as auditors. And based on the results reported and considering that there are no shareholders present at this meeting who shall be casting any votes on the matter, it appears the resolution has been duly carried by the required majority of votes by shareholders represented by proxy and entitled to vote. The results will be confirmed and publicly disclosed later today. I direct the secretary to attach the scrutineer's report to the meeting minutes.

The next item of business is the election of directors for the next year. There are 10 directors positions to be filled. Management has nominated Vincent Benoit, Pierre Chenard, Aline Cote, David Fennell, Louis-Pierre Gignac, Elif Levesque, Norma MacDonald, Jason Neal, Naguib Sawiris and Sonia Zagury for election as directors of the corporation for the next year. Majority -- sorry, all -- majority of them are present at this meeting either in person or via the live webcast.

Given that the scrutineer has advised me that the number of votes against the election of any of the shareholders is not material and considering that there are no shareholders present at this meeting, who shall be casting any votes on the matter, it appears that each of the 10 management nominees are duly elected by the required majority of votes cast by shareholders represented by proxy and entitled to vote.

I therefore, declare the following individuals to be elected as directors for the next year or until their successors are elected or appointed. In accordance with the provision of the corporation's bylaw, these individuals are Vincent Benoit, Pierre Chenard, Aline Cote, David Fennell, Louis-Pierre Gignac, Elif Levesque, Norma MacDonald, Jason Neal, Naguib Sawiris and Sonia Zagury.

The voting results on the election of directors will be confirmed and publicly disclosed later today. Such results will be reported on an individual basis. I direct the Secretary to attach the scrutineer's report to the meeting minutes. The next item of business is the approval of all unallocated awards under the corporation Omnibus Equity Incentive Plan.

The full text of the Omnibus Plan is set out in Appendix A of the circular. I have received the scrutineer's preliminary report on voting in respect of the unallocated awards under the Omnibus Plan. Based on the results reported and considering that there are no shareholders present at the meeting, we shall be casting any votes on the matter. It appears the resolution has been duly carried by the requisite majority of votes cast by shareholders represented by proxy and entitled to vote. The results will be confirmed and publicly disclosed later today.

I direct the secretary to attach the scrutineers' report to the meeting's minutes. The next item of business is the approval of the corporation approach to executive compensation on an advisory nonbinding basis. The full text of the resolution for that advisory vote is set out in the circular. I have received the scrutineer's preliminary report on voting in respect to the corporation approach to executive compensation. Based on the results reported and considering that there are no shareholders present at this meeting, we shall be casting any votes on the matter, it appears that the resolution has been duly carried by the requisite majority of votes cast by shareholders represented by proxy and entitled to vote. The results will be confirmed and publicly disclosed later today.

I direct the Secretary to attach the scrutineer's report to the meeting's minutes. As the business of this meeting has been completed, unless anyone has any questions or comments, I declare the meeting to be concluded. Thank you all for taking the time to attend today.

I got a note that there are no questions on the platform.

All right.

This concludes the meeting. You may now disconnect.

Good morning, and welcome to G Mining Ventures First Quarter 2026 Results Conference Call. [Operator Instructions] Please note that today's call is being recorded. I will now turn the call over to Jean-Francois Lemonde, Vice President of Investor Relations.

Thank you, operator, and thanks, everyone, for attending G Mining's 2026 First Quarter Financial Results Conference Call. In addition to myself, we have on the line [ Louis-Pierre Gignac ], Chief Executive Officer and Director; and Julie Lafleur, Chief Financial Officer and Vice President of Finance. I would like to remind everyone that after the remarks from management, the call will be followed by a Q&A session. And we will be making forward-looking statements during this call. Please refer to the cautionary notes and risk disclosure in our MD&A and on Slide 2 of this webcast presentation. Also, please bear in mind that all dollar amounts mentioned in this conference call are in U.S. dollars unless otherwise noted. Now I will turn over the call to Louis-Pierre to provide you with an overview.

Good morning, and thank you, JF, and thank you, everyone, for joining us today. I want to start by recognizing the dedication of our teams across all our sites whose commitment to safety, operational excellence and responsible mining continues to drive our success. Q1 2026 was a solid quarter for G Mining with strong operational performance and elevated gold prices underpinning robust financial results. Production of 31,846 ounces was in line with our plan with 33,776 ounces sold. We expect to see progressive improvements as we move through the year as stripping activity continues to provide access to higher grade ore through the remainder of the year. We continue to deliver strong margins with an all-in sustaining cost of $1,588 per ounce compared to an average realized gold price of $4,143 per ounce. TZ generated $56 million of free cash flow, which is equivalent to $1,764 per ounce of gold produced, and we ended the quarter with $287 million in cash and $248 million in net cash. We are reiterating our 2026 production and cost guidance with production expected to be weighted approximately 38% and 62% between the first and second halves of the year, respectively. Through the year, we'll continue to focus on our margins and on maximizing free cash flow for every ounce that we produce. In addition, the proposed acquisition of G2 Gold Fields will enable the consolidation of an entire mining district by combining the Oko West and OkoGani projects into a single integrated Tier 1 asset. Together, the combined project has the potential to produce more than 500,000 ounces of gold annually over the life of mine. The transaction provides a step change in scale and production with line of sight to more than 700,000 ounces per year by 2029 and that before incorporating Gurupi, accelerating Jimin's transition toward mid-tier producer status. Production was lower in Q4 as expected due to lower process grades as we advance the pit and increased stripping activity to open access to Phase 2 ore. This is the work that supports the stronger production profile expected in the second half of the year. The plant continued to perform well. Throughput was in line with the plan and recovery was consistent considering the lower grade ore processed. At PZ, mining activity remained strong in the first quarter with 5.5 million tonnes mined, including 1 million tonnes of ore, resulting in a strip ratio of 4.4. This compares to 2.45 in Q4 of 2025 and 1.45 in Q1 of 2025. The increase in strip ratio was anticipated and reflects planned waste stripping to prepare the mine for higher grade ore profile expected in the second half of the year. The second quarter is expected to follow a similar pattern to Q1 with operational priorities centered on mining productivity and maintaining adequate drill and blast inventory. By the end of Q2, operations will transition from the rainy season into the dry season, facilitating our mining activities. Total cash costs were $1,034 per ounce and all-in sustaining costs were $1,588 per ounce sold. Costs were higher this quarter due to lower gold sales, higher gold-linked royalties and a stronger Brazilian real. Importantly, full year costs are expected to remain within our guided all-in sustaining cost range of $1,230 to $1,440 per ounce. Safety performance remained strong at TZ with no lost time injuries during the quarter. With that, I will now invite Julie to take you through the financial results, cash flow and balance sheet.

Thank you, Louis-Pierre, and good morning, everyone. The financial results in Q1 reflect strong operating margins, disciplined cost control and the cash-generating capacity of TZ. Revenue was $140 million based on 33,776 ounces sold at an average realized gold price of $4,143 per ounce. Revenue for the quarter was reduced by a $10.7 million noncash adjustment related to the gold streaming agreement triggered by an increase in mining reserves. Net income was $80.4 million or $0.35 per basic share and $0.34 per diluted share. Adjusted net income was $62 million or $0.27 per share. EBITDA was $114.1 million and adjusted EBITDA was $97.7 million. Free cash flow was $56.2 million in the quarter and $0.24 per share. For a lower production quarter, the financial results were strong. TZ continued to generate cash while we advanced Oko West and funded exploration across the portfolio. Cash provided by operating activities was $69.7 million in the quarter and free cash flow was $56.2 million after sustaining capital and other adjustments. During the quarter, cash used in investing activities was $119.5 million, primarily reflecting Oko West construction spend. Cash provided by financing activities was $208 million, primarily reflecting the La Mancha top-up investment net of debt repayment. Cash and cash equivalents increased from $135 million at year-end to $287 million at March 31, 2026. We also moved from net debt of $6.9 million at year-end to net cash of $248 million at quarter end. Including the undrawn $350 million revolving credit facility, available liquidity was approximately $638 million. That liquidity gives us flexibility as Oko West move through peak construction spend while allowing us to continue funding exploration and maintain balance sheet strength. Capital expenditure totaled $108 million in the first quarter. At TZ, sustaining capital was $13.5 million, including capitalized waste stripping. At Oko West, we invest $88 million during the quarter. Cumulative spend reached approximately $292 million or about 30% of the approved initial capital budget. Total commitments reached approximately $525 million or 54% of the approved budget. This is a meaningful derisking point because more than half of the initial capital budget has moved into committed scope. Oko West capital guidance remains unchanged with $514 million to $568 million expected in 2026 and $217 million to $240 million expected in 2027. Exploration spending was $6 million in the quarter across TZ, Oko West and Gurupi. Activities are expected to increase through the remainder of the year as we advance our 2026 exploration program. Our capital allocation remains focused on funding Oko West, investing in exploration where we see strong potential and preserving financial flexibility. Q1 production represented approximately 18% of the midpoint of annual guidance, consistent with the expected production profile weighted roughly 38% to the first half of the year and 62% to the second half, reflecting the planned grade progression at TZ. Our 2026 production guidance remains unchanged on 160,000 to 190,000 ounces of gold. For 2026, total cash cost guidance remained $736 to $865 per ounce sold and AISC guidance remains $1,230 to $1,444 per ounce sold. As we discussed, Q1 costs were above the annual guidance range because of lower production volumes, higher gold-linked royalties and the stronger Brazilian real. As production increases in the second half of the year, we expect unit costs to improve. For 2027, production guidance is 200,000 to 235,000 ounces of gold. Total cash costs are expected to decline to $633 to $743 per ounce sold and AISC is expected to decline to $977 to $1,146 per ounce sold. The 2027 profile reflects a full year of higher grade Phase 2 contribution, lower sustaining capital compared with 2026 and continued operating maturity at PZ. With that, I will turn it back to Luisa to discuss Oko West and Gurupi.

Thank you, Julie. I will now speak to our growth project, Oko West. Oko West continues to advance on schedule and on budget during the quarter. At the end of Q1, overall project progress reached 19.7% on an earned value basis, with engineering and procurement both advanced to approximately 80% -- we have spent approximately $292 million and committed approximately $525 million, representing 54% of the approved initial capital budget. The growing proportion of committed capital reflects continued project advancement and the award of major procurement packages securing long lead equipment with pricing remaining in line with expectations. On site, Oko West continues to make solid progress despite the heavy rainfall season. Earthworks are well advanced and concrete works are progressing steadily across the process plants and other key infrastructure areas. The advancement of foundations will now allow for steel erection activity to commence in earnest, starting with the truck shop and the assembly of tanks in the process plant area. Project logistics also advanced during the quarter. The completion of the access road bridge and commissioning of the barge landing infrastructure have enhanced our ability to receive and transport major equipment and materials to site. Power infrastructure development is progressing well with delivery of the first power generators expected throughout Q2, approximately 2 months ahead of schedule. The power plant remains on track to be operational in July of 2027. At the tailings storage facility, clearing activities have reached 36% completion, while foundation preparation for the main tailings dam continues to advance. Placement of fill material is scheduled to begin in Q2. The workforce has continued to grow during the quarter. Site personnel now totaled 1,379 people with Guyanese nationals representing 82% of the workforce and cumulative hours worked now exceeding 1.6 million project to date. The current Oko West project remains on schedule with first gold targeted in the second half of 2027 with commercial production expected in January of 2028. The process plant remains on the project's critical path. Recent progress has positioned the project to transition toward mechanical installation in the grinding area with the delivery of grinding mills expected in July 2026 and commissioning targeted for August 2027. Each of these milestones supports the path to first gold. Our focus is to continue converting the schedule into completed field work while maintaining discipline on safety, cost and quality. I will close with our priorities for the remainder of 2026 and into 2027. At TZ, the priority is to deliver the planned second half production profile and lower unit costs. The focus areas are Phase 2 access, mining productivity, drill and blast inventory, plant throughput recovery and sustaining capital execution. At Oka West, the priorities are the mill deliveries, power and infrastructure, continued camp expansion, process plant construction, TSF work and logistics readiness. At Gurupi, the key deliverables are the updated mineral resource estimate, the preliminary economic assessment and the ESA filing before the end of the year. For G2, the priorities are closing the transaction, maintaining the Oko West schedule and advancing the technical work required to validate the combined district plan. We are entering the next phase with a stronger balance sheet, a producing mine generating cash flow and Oko West advancing well through construction. We have the assets, liquidity and team required to execute this next phase of growth. Operator, we are ready for questions.

[Operator Instructions]

Your question first comes from Fahad Tariq with Jefferies.

Can you maybe talk about the sensitivity to the higher energy prices? I believe it's somewhere around $10 an ounce for every 10% change in the oil price. But just remind us what the budget was at the beginning of the year, like what was assumed and how that's trending now?

Yes, sure. So our diesel price assumption for 2026 was about $1 a liter, which represents about 10% of our cash costs. And in Q1, our actual cost was $1.13. So -- and that represents about 12% of our cash cost in Q1. So yes, as you point out, a 10% increase is about $11 per ounce. So your $10 is very much in line with that sensitivity.

Okay. And then maybe just extending that as you're kind of in the peak build phase of Oko West, are you seeing any of the cost pressures coming through because of the higher energy prices?

A little bit for our logistics costs. But generally, very, very little just in terms of all the major equipment packages that we purchased. They've been awarded a while ago. So we're not seeing that trickle into the big spends that we have.

Okay. And then maybe just one more for Julie on the accounting side. The revenue adjustment that's noncash related to the Franco stream, is it fair to assume that as long as reserves keep increasing, you're going to see that negative adjustment because I think it's an adjustment for the upfront consideration and the deferred revenue.

Yes, completely right. If the reserves, which is a very good news, continue to increase over time, yes, we're going to see this catch-up adjustment showing up. However, we always have to remember that this stream will get depleted in the future. So this is going to be back to revenue. So it's actually a timing difference more than anything else, noncash. It's -- as you said, it's purely accounting.

Your next question comes from Ralph Profiti with Stifel.

There have been some stories about wage and union increases around some other mining operations in and around the area in Guyana. I'm just wondering on sort of labor productivity, labor engagement, labor inflation. Just what's been your experience in the past few, say, weeks and months and sort of looking forward towards into next year?

Yes. So I would say just at Oko West right now, we don't have a union. That's typically the case when you're in the construction phase. But we do expect to have a union maybe come into place once we enter the operations phase. So yes, we don't have like a collective bargaining agreement that's in place at the moment. What I would say is like our recruitment is continuing to progress in line with our progression -- planned progression in terms of workforce on the project. And yes, basically, we're able to recruit people based on the wage scales that we've developed for the project. So, so far, no big surprises. And yes, typically, we tend to hire locally when we can. And then if we're not able to find the right skilled resources that we want, then we extend the net a bit wider starting with Caricom countries such as Suriname and also then move on to other expat positions such as Canada and elsewhere. So -- but yes, so far, things are in line with our project budget when it comes to the labor component.

Okay. Yes, very encouraging. And as a follow-up, as you approach the final stages of detailed engineering, you mentioned the 80% level. Just wondering if there are any remaining float items as you potentially anticipate G2 Gold fields coming into the fold from a corporate and a mining and an engineering perspective and how you're feeling about that Q3 '26 target for detailed engineering finalization?

Yes. So I mean our plan is always to execute on what we're -- call it, this Phase 1 or just the Oko West project as it is. So we will finish that detailed engineering to finalize the construction of what we're doing. But when the G2 transaction closes, our intent is to essentially reinitiate the feasibility stage to define the expansion that we want to execute on. And that will be part of a separate budget at that point and capital budget to execute on that expansion. So we're really treating it as a Phase 2, and then we'll essentially be reporting more details on that once we complete that technical study.

Your next question comes from Anita Soni with CIBC Capital Markets.

I just wanted to ask in terms of TZ, what do you have as the current stockpile levels in the grade stockpile?

Yes. I don't have that number in front of me, but it's like well over -- it's almost 2 years' worth of processing. So yes, we have ample stockpiles. I think it's around 7 million tonnes. So yes, we always have material available to feed the plant at any given time. And that's part of our mining strategy for -- since we started mining and for the next couple of years is to essentially stockpile lower-grade material and process the higher grade. So as you can imagine this Q1, where we're advancing waste stripping, we did pull from stockpile a little bit. But even there, we had access to ore through the quarter.

And then in terms of the throughput on the I mean, is there additional capacity [indiscernible] slightly higher?

I mean we still think with the sustaining CapEx program that we have, we're going to be adding to our flotation tailings pumping capacity. And we see that as a bottleneck currently in the process plant. And once we execute on that project, which will be more end of Q2, Q3, we anticipate being able to push more tonnage through the plant. So yes, that's something that we see some continued upside with the program that we're implementing this year.

And then just secondly, I wanted to ask about costs. How do you think those will evolve obviously, the processing plant that get higher throughput, those that you're taking on that. But I was a little bit more focused on the mining costs kind of going up quarter?

Yes. Sorry, I didn't fully get the full question, but just on the mining costs for the quarter, we did have a bit higher mining costs, which is kind of what we experienced when we're going through the rainy season. And Q2, we are essentially exiting the rainy season towards the end of Q2, and we typically see our costs go down because of a bit higher productivity, but essentially, we're having less road maintenance costs and tire consumption is much better once we get out of the rainy season. So those are some of the kind of sensitivities that we see in our mining cost.

Okay. And then lastly, just on Oko. When do you expect to have -- just remind me, I'm sure somewhere, but when would you expect to have an integrated study and deliverables towards that end of this year?

Yes. I'd say -- I mean, we didn't put a precise date on when we think we'll have a technical report issued on the integrated project, but we're high level scheduling like mid-2027. And the reason for that is it's really dependent on completing the infill drilling that we need to upgrade the inferred resource to indicated category to integrate it into the feasibility. So currently, I mean, G2 is drilling, doing infill drilling. And once the transaction closes, we'll make the assessment of where that program is at and have to carry on with it. So yes, we'll have better visibility once the transaction closes in terms of how much is left to be done and when we can get it done. But yes, high level, we're targeting mid-2027 to have that study completed. What we need to do as well in parallel with the infill drilling is completing some metallurgical test work and geotechnical studies to be able to produce a feasibility level integrated project. So that's -- those are some of the main work streams.

[Operator Instructions]

As there are no more questions from the phone line at this time, we will now proceed with web questions.

We have one question from the web can you speak to AISC and C1 going forward with this quarter above guidance? Are we expecting the other quarters to pull down the average to keep with AISC in line?

Yes. So exactly, it's a volume gold production-related impact. So in the second half, we -- with the higher grades that we'll be accessing, we'll have higher gold production, and that will be lowering our average AISC in the second half and essentially bringing us in line within the range that we've guided to for the year. So that's the expectation at the current time.

And that concludes with our question-and-answer session. I will now turn the call back over to Jean-Francois Lemonde for closing remarks.

Thank you, operator, and thanks, everyone, for joining G Mining Ventures First Quarter 2026 Results Conference Call. A replay will be available on our Investor Relations website within 24 hours. And please feel free to reach out to the IR team with any follow-up questions. Have a great day.

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

Good morning. My name is Demi, and I'll be your conference operator today. At this time, I would like to welcome everyone to the conference call to discuss an exciting transaction in the market, G Mining Ventures acquisition of G2 Goldfields. [Operator Instructions]. This call is being recorded.

I will now turn the conference over to J.F. Lemonde, Vice President, Investor Relations. Please go ahead, sir.

Thank you, operator, and thanks to everyone for attending this morning's conference call to discuss G Mining's acquisition of G2 Goldfields.

In addition to myself, we have on the line today from G Mining, Louis-Pierre Gignac, President and Chief Executive Officer; and from G2 Goldfields, we have Daniel Noone, Chief Executive Officer.

We have a prepared presentation to accompany the conference call, which is available for viewing through the webcast and for download on G Mining's and G2's websites.

Before we begin, please note the disclaimer on Slide 2 of today's presentation concerning forward-looking statements. We will be making some forward-looking statements during our conference call today, which are subject to several assumptions, risks and uncertainties as disclosed in each of G Mining's and G2's public securities filings. Actual results could differ materially from those projected in the forward-looking statements.

Our remarks today will also refer to certain non-IFRS financial measures such as, for example, free cash flow and all-in sustaining costs. Various disclosures and limitations with respect to these non-IFRS financial measures are also included in those filings. Also, please bear in mind that all of the dollar amounts mentioned in this conference call are in U.S. dollars unless otherwise stated.

I'll turn the call over to Louis-Pierre Gignac to make some opening remarks.

Thank you, J.F., and good morning to everyone. Today, we're thrilled to announce the acquisition of G2 Goldfields. This marks a key milestone for our company as we continue to grow our -- into a multi-asset intermediate producer in the Americas.

What excites us about the G2 transaction is the ability to combine GMIN's Oko West project and G2's directly adjacent Oko-Ghanie project to deliver a Tier 1 world-class gold mine. We believe the combined Oko project will surpass all current development stage projects in the market.

Additionally, there is a unique opportunity to unlock significant near- and long-term value through unparalleled synergies, since these properties are direct neighbors. In the mining industry, it's rare to see on the ground realizable synergies, which this transaction has in abundance.

We're also very excited to take on this combined asset and are proud to bring this mine into production for Guyana. Guyana is truly a supportive mining jurisdiction, where the government of Guyana has shown exceptional support for G Mining Ventures and Oko West project.

Let me walk you through what makes this combination so compelling.

First, we are consolidating an entire district by bringing together the Oko West and Oko-Ghanie projects into a single integrated Tier 1 asset. By doing so, we expect to unlock more than CAD 1 billion in synergies driven by shared infrastructure, optimized mine planning and increased plant throughput.

Second, the combined project has the potential to deliver over 500,000 ounces of gold annually on a life-of-mine basis, placing it firmly in the top tier of global gold operations.

Third, we are accelerating value creation by leveraging G Mining Ventures proven mine-building expertise and deep experience in the Guyana Shield to deliver Oko on time and on budget.

The combined project is expected to be fully funded, supported by GMIN's strong balance sheet and cash flow from TZ.

And finally, integration enables a reduced environmental footprint with a single centralized processing facility, tailings storage facility and shared infrastructure across the district.

Turning to the transaction structure. G Mining will acquire 100% of G2 Goldfields through a plan of arrangement.

Under the terms of the agreement, G2 shareholders will receive 0.212 GMIN shares, along with exposure to a new and well-funded exploration vehicle, the G3 SpinCo, which will hold interest in the Tiger Creek property, Peter's Mine property, Property B being all remaining G2 properties outside of Oko-Ghanie, Amsterdam, Aremu Partnership and Aremu mine and Property A.

SpinCo will be funded with CAD 45 million of cash and given the unexplored potential of the acquired properties, will also be granted a contingent value right, providing for payments to be made to G3 SpinCo and the maximum aggregate amount of USD 200 million based on the establishment of various increments of M&I resources at the acquired properties.

The exchange ratio implies an offer price of CAD 10.84 per G2 common share, excluding the value of G3 SpinCo based on the closing price of GMIN shares on the TSX as of April 8, 2026 and a premium of 72% based on the 30-day VWAPs of GMIN and G2's common shares on the TSX as of the same date.

The fully diluted in-the-money equity value of the transaction, excluding the value of G3 SpinCo is estimated to be approximately CAD 3 billion. Upon completion of the transaction, existing GMIN and G2 shareholders will own approximately 80.1% and 19.9% of GMIN, respectively and G2 shareholders will also own 100% of G3 SpinCo.

The transaction has been unanimously approved by both boards and is expected to close in the second quarter of 2026, subject to customary shareholder, regulatory and court approvals. The transaction will require approval by 66 2/3% of G2 shareholders.

In addition, G2's 2 largest shareholders, together with directors and members of senior management, have entered into lockup agreements in support of the transaction, representing 37% of its shares outstanding.

As part of the transaction, GMIN will benefit from a dramatically increased district-scale land package with the inclusion of the acquired properties. This materially enhances the exploration upside potential of the combined Oko project, all of which are located within approximately 20 kilometers of the planned infrastructure.

Likewise, G2 shareholders will benefit from the continued exploration upside exposure through the spinout of the Peter's Mine, Property B, and Tiger Creek properties into the G3 SpinCo, which will be managed by the successful G2 exploration team.

This transaction delivers several benefits to GMIN shareholders, creating a truly transformational growth profile, taking our production from roughly 160,000 to 190,000 ounces as guided for 2026 and scaling to more than 700,000 ounces annually with minimal incremental execution risk and before even factoring in the upside potential from Gurupi.

It also establishes a Tier 1 gold district in Guyana with scale and infrastructure to support more than 500,000 ounces of gold production per year. Most importantly, we believe we can unlock over CAD 1 billion in synergies driven by meaningful efficiencies across capital spending, operating costs, higher throughput through shared infrastructure, improved mine sequencing and the potential for accelerated permitting time lines.

This transaction also significantly expands our exploration footprint, increasing our land position to 362 square kilometers in a highly prospective geological belt.

Finally and critically, we expect the transaction to be highly accretive on a NAV per share, reflecting the relative valuation multiples of the 2 companies and the impact of more than CAD 1 billion in synergies compared to an acquisition equity value of approximately CAD 3 billion.

I'd like to now pass it over to Dan to go over the benefits for G2 shareholders.

Thanks, LP. For G2 shareholders, the transaction provides both immediate value and continued upside. Our shareholders will receive an attractive premium and ownership in a larger, more liquid and more visible company. At the same time, there is retained exposure to exploration upside through G3 SpinCo and a contingent value right. And importantly, the Oko-Ghanie project benefits from a fully funded development path, supported by GMIN's building expertise, balance sheet and free cash flow.

Back to you, LP.

Thanks, Dan. Turning to Slide 11, which shows the snapshot of the combined group with a pro forma market cap of $11.1 billion and a strong net cash position of approximately [ $218 million ].

Let's now turn to the combined Oko project. What is driving the substantial synergies of this transaction is the proximity of the 2 projects. The combined projects create a continuous land package of approximately 362 square kilometers in a highly prospective region. This addition gives us a district-scale control, not just of the currently identified deposits but an entire system with long-term expansion potential, which we intend to continue exploring aggressively even as we are focused on construction.

The 2 deposits are right beside each other, and as a result, the incremental haul distance from Oko-Ghanie deposit to the Oko West mill is approximately 3 kilometers. The Oko West and Oko-Ghanie deposits are essentially part of the same continuous mineralized system. The deposits contain a combined indicated mineral resource of 7 million ounces at an attractive grade of 2.28 grams per tonne.

Combining the data sets from both projects enhances our geological understanding and improves targeting going forward. For example, in Block 1, at the junction of the 2 properties, where sparse drilling is already highlighting the presence of another high-grade ore shoot. The system remains untested at depth but intercepted down to 1 kilometer on Block 4 and along strike, essentially forming a continuous 4.5-kilometer long open pit when combining the deposits. Ongoing drilling continues to demonstrate continuity and expansion potential.

In addition to the existing resource, the property presents significant exploration upside. This includes brownfield potential through the expansion of known deposits and numerous greenfield targets distributed across the wider land package. The project is located in a highly fertile geological environment with mineralization focused along structural and lithological controls at the contact of the main intrusive, as shown with the regional geophysics. Numerous targets are already planned to be tested on a broader property.

We see synergies across all of our key operating metrics. Life of mine average annual production is expected to increase 42% to over 500,000 ounces per year. Contained M&I resources increases by 30% to 7 million ounces. Combined M&I resource grade increases 12% to 2.3 grams per tonne and allow for mine sequencing optimization. Mine life is expected to increase beyond 14 years and CapEx intensity is expected to decrease on a per contained ounce basis.

The various synergies that we expect to realize from the transaction that we can identify immediately total approximately CAD 1 billion over the life of mine on a pretax basis. This includes approximately CAD 850 million in capital savings primarily from eliminating duplicate infrastructure and roughly CAD 275 million in operating savings over the life of mine. In simple terms, instead of building 2 projects, we build 1 that we will expand and do it more efficiently.

In addition, there is material value in bringing Oko-Ghanie into production faster as part of a combined project. The synergies that will be generated are very unique, and our objective will be to generate an updated feasibility study for the combined expanded project.

The integration of both mines, also helps accelerate the development of Oko-Ghanie while reducing overall project risk. Since Oko West is already fully permitted, we can bring Oko-Ghanie into the existing framework through an amendment process rather than restarting the permitting process from the beginning.

We'll also be able to leverage existing government agreements and the strong community relationships that we already have in place. Altogether, this supports a faster, more efficient and more streamlined path to production. At the same time, we do not expect to delay or interrupt the current Oko West project or introduce delays.

Slide 19 shows the overall progress of construction activities at Oko West. As of the end of 2025, total project commitments amount to approximately $424 million, representing 43% of the initial capital budget. Detailed engineering almost at 60% at year-end and is expected to be finalized by Q3 2026. Mine construction activities are now underway in the process plant area with the grinding circuit representing the project's critical path.

Both mills are expected to arrive in Guyana in July of this year, with commissioning and first gold production targeted for the fourth quarter of 2027. The project remains well within budget and on schedule with first gold pour targeted in the second half of '27 in commercial production in January 2028.

Regarding the plan for an integrated project, it involves completing the definition drilling of the Oko-Ghanie deposits and technical studies to verify the optimal mine plan sequencing and throughput for the expanded project. The intention is to release a technical report in 2027, targeting expanded production by first half of 2029.

The current Oko West project and an expanded combined Oko project will be derisked from a funding perspective. At a gold price of $4,000 per ounce, our estimated TZ free cash flow will more than cover the remaining capital expenditures to complete construction of Oko West without using our undrawn credit facility and current cash on the balance sheet.

Let's now turn to how this project compares globally. On a global basis, the combined Oko project ranks amongst the largest advanced stage gold projects in terms of production. At over 500,000 ounces annually, it sits firmly in the top tier of advanced development projects worldwide. Beyond scale, the project also stands out in terms of quality. When we look at resource size and grade together, the combined Oko is in a class of its own among comparable projects in the Americas. In our view, this combination of size and grade is rare and should command a premium valuation.

This transaction also drives a compelling production growth profile. We moved from roughly 200,000 ounces today to over 700,000 ounces annually over time, which positions GMIN as one of the fastest-growing producers globally. Despite this growth, GMIN currently trades at a discount to peers, the P/NAV multiple shown on this slide is based on consensus multiples of GMIN and G2 and does not factor the synergies of putting the 2 projects together into one.

As we execute on construction, deliver key milestones and realize synergies, we believe there is a compelling opportunity for a re-rate.

To conclude, this transaction creates a Tier 1 gold asset in Guyana with scale, strong economics and significant synergies. It is fully funded, supported by a proven execution team and positioned for meaningful production growth.

Thank you for your time, and we'll now be happy to take any questions.

[Operator Instructions] Your first question comes from the line of Ralph Profiti with Stifel Financial.

Just wondering what we can -- how we think about this $850 million in capital cost savings? And what items did you include in that bucket? Your preambled comments mentioned the mill and the processing facility. I was wondering if there's work being done on synergies through tailings fleet? And what are the things we can throw into that bucket?

Yes, that's a good question. There's actually a lot of things that we can throw into that bucket. Starting with all the shared infrastructure. So when we think of just the access road, all the logistics infrastructure, such as the Wharf, the permanent camp facility, communications infrastructure. There's also the tailings facility, as you mentioned, because, at that point, all we need to do is do a raise to the tailings dam at minimal cost as opposed to building a new facility.

And then on the process plant side, we're looking at an expansion as opposed to building a whole separate plant. So yes, the synergies on the CapEx side are quite significant. And to be honest, we've highlighted some of the initial ones through that number, but that will be further refined through the feasibility study that we'll be completing.

Okay. And I'd also like to get your thoughts in your due diligence on Oko-Ghanie underground potential. Where are you at on that?

Yes. Obviously, that was part of the due diligence. As you know, I mean, both deposits have an open pit and underground component. So that's obviously part of how we see the combined project. And we see a lot of opportunities in terms of optimizing the mining plan, both in terms of sequencing and the mix that we see of both open pit and underground contributing to the mill feed. So yes, that's part of the project. As we kind of highlighted, there is definition drilling that needs to take place on the Oko-Ghanie deposits, and that's a work stream that we need to pull into an updated feasibility study.

Next question comes from the line of Josh Wolfson with RBC Capital Markets.

Just going back to Rob's question on the CapEx, the old G2 CapEx was about $660 million and then now with the capital cost savings in U.S. dollars, it's over $600 million. So the CapEx, I guess, implied to build the project looks extremely low. And I'm wondering how much additional capital could there be beyond project construction that might not be included in these numbers, for example, just to build the expansion at the existing plants? Or is there something we're not fully understanding here in terms of capital cost savings?

Yes. I mean, the capital cost savings that we're referencing are life of mine CapEx savings. So it does include the initial and sustaining. So that's one aspect. And as you know, with the underground aspects of these projects and the staging, there is significant sustaining CapEx in both projects. So that saving that we're referring to includes both initial and sustaining.

But yes, going back to your question also what initial CapEx we see for the expansion? Obviously, we've done preliminary work as part of our due diligence process, but that's what we need to refine as part of the feasibility study. And we envisioned initially a 25% to 30% expansion of the plant throughput. And there, again, that's something that we want to revisit in more detail. There's maybe potential to go bigger. That's the whole optimization exercise that we want to undergo as part of the feasibility.

That's very helpful. And then another question, there's sort of been some discussion about sequencing. When you think about combining the 2 projects, is there any ability to consider maybe deferring underground development, if that would help improve the IRR or anything like that? Or is this mainly just a great exercise of accelerating some higher-grade portions that G2 might have?

Yes, that's part of the optimization exercise. G2 does have sections of deposits that have higher grade. So with a view of maximizing head grade in a life of mine schedule, there's that, that will be possible. One of the key balancing acts that we have is really maintaining a blend of open pit and underground production. Obviously, if we're expanding the mill 30%, that assumes that we're always having a continuous feed from the open pit.

So yes, that's part of the optimization that we'll be doing, but there will be a mix of G2 deposits coming in earlier into the schedule and displacing some of the Oko West mineralization.

Next question comes from the line of Jeremy Hoy with Canaccord Genuity.

Most of them were around the CapEx, and I think you provided enough color there. But just two more. Could you comment on the timing of the FS that you're planning to put out? And with the additional exploration opportunities, with the new properties, can we expect an augmentation of the exploration budget this year and next?

Yes. So like we'll -- obviously, we'll be detailing out our time line further once the transaction closes. But assuming it's end of Q2, we would expect to have an updated fees in the second half of '27. And yes, G2 is currently progressing with the definition drilling currently. So once the transaction closes, we'll carry on with those activities to feed the fees. So that's kind of the planning. And as you mentioned, there's multiple targets on this land package. So yes, there'll likely be enhanced exploration budgets being put together to advance the work streams on the combined project in combined land package.

Yes, we're contending with building a mine at the same time and ramping up workforce on the construction side to close to about 2,000 people by year-end. So yes, there's a continual battle for beds on site. So that's what we're juggling at the same time.

Got it. If I may, actually, one for Daniel. Could you comment on the prospectivity of the properties that are being spun out into G3?

Yes, sure. Basically, it contains the Peter's Mine in Puruni area with Tiger Creek as well, a historic producer from the early [ 1900s ] high-grade 41,000 ounces -- 41 grams a tonne. So definitely a huge potential out there. We think we've got mineralization of about a 4K strike there. That will be our first up target and then up at Area B to the Northwest more greenfields, but a lot of gold coming out of there. So we think we're on to the next one. That's what we're good at. And so we're pretty excited about that.

Next question comes from the line of Anita Soni with CIBC.

So I guess I was just going to follow up in terms of the manpower. Is there anyone in the management team at G2 that's going to be retained? Or is it just passing the ball over to you guys and run with it?

Yes. I think the plan is the G2 team will move over to the G3 SpinCo. And then we'll just pick up the ball, like you say, and continue the work programs at that point with our teams.

Okay. And then so in terms of like the people, I mean, the next packet of work looks like it's infill drilling studies, permitting. Those are people, I guess, who have just completed their tasks at GMIN and now are kind of looking for things to do. And so this is the next space for them. Is that the case?

Yes, that's basically it. We do have teams that are currently working on the detailed engineering, which will be completed in Q3. So we will be opening up new work streams to work on the updated feasibility study. So yes, that will be basically the same teams involved in both processes.

All right. And then if we're thinking about trying to early modeling of trying to figure out a valuation for NewCo ahead of this updated feasibility study. What kind of -- and I'm -- I apologize if it somewhere in this press release, but what kind of throughput are you looking at in the plant?

Yes. We guided to some of our initial thoughts, which are in the range of 25% to 30% throughput expansion. And we do want to revisit that. It could be potentially higher. It's going to be a combination of maximizing our value and making sure that we have a plant that's going to operate well as well. So -- but that's our current thinking based on a lot of work that went into the due diligence process so far.

And when do you think that you would actually get to sort of the 500,000 said, because I mean like I look at the -- so you're going to build the plant from in 2028 and you're commissioning the plant. But presumably, you're going to be doing some stripping and the mining earthworks for the other deposits and that might not -- it doesn't -- unless you start now or relatively soon ahead of the ahead of the project, like where is the earthworks in pre-stripping in the schedule here in the project integration?

Yes. So the way we're looking at it is this year and 2027 would be the infill drilling, the studies, the permitting and the procurement required for the expanded project. 2028 being, call it, the expansion of the plant facility in and pre-stripping like you say. So basically, preproduction on the expanded project would be 2028 and targeting an expanded throughput come 2029. So exact timing of that expanded throughput in '29 is to be fully buttoned down, but we do expect that to take shape in 2029.

[Operator Instructions] And we have our question from the webcast.

Question is, does Tajiri Resources' Yono project located between Oko West and Oko-Ghanie lie on any land that could improve the overall project layout?

Currently, it's not ground that is required for the project. So that's currently not in our plans.

[Operator Instructions] It looks like we don't have any questions from now. And that concludes today's call. Thank you all for joining. You may now disconnect.

Good morning, and welcome to G Mining Ventures Fourth Quarter and Full Year 2025 Results Conference Call. [Operator Instructions] Please note that today's call is being recorded.

I will now turn the call over to Jean-Francois Lemonde, Vice President, Investor Relations.

Thank you, operator. Good morning, and thank you all for joining us for G Mining Ventures Fourth Quarter and Full Year 2025 Results Conference Call. I am Jean-Francois Lemonde, VP of Investor Relations. Our earnings release that was issued yesterday, along with today's presentation are available on our website.

On the call today with us is Louis-Pierre Gignac, President and Chief Executive Officer; Julie Lafleur, Chief Financial Officer and Vice President, Finance. I would like to remind everyone that we will be making forward-looking statements during this call. Please refer to the cautionary notes and risk disclosure in our MD&A and as well as Slide 2 of the webcast presentation.

Now I will turn it over to Ulrika Klinkert to provide you with an overview.

Thank you, JF. G Mining Ventures delivered strong record financial results for our first full year of commercial production at TZ, driven by a strong operational performance, disciplined cost control and a supportive gold price environment.

We finished the year with a solid fourth quarter, producing 47,000 ounces of gold at a total cash cost of $808 per ounce and an all-in sustaining cost of $1,245 per ounce. Costs increased quarter-over-quarter, primarily due to higher royalties and lower gold sales volumes during the period. With a high all-in sustaining cost margin of $2,657 per ounce, TZ delivered approximately $80 million of free cash flow in the quarter.

For the full year, 172,000 ounces of gold were sold, generating $255 million of free cash flow or $1,484 per ounce produced and maintained a peer-leading cost structure with total cash costs of $748 per ounce and an all-in sustaining cost at $1,155 per ounce, which was within our guidance despite higher-than-expected royalty costs.

During the year, we ramped up the plant throughput, increased mining rates through the commissioning of additional mining equipment and completed expansion of the CIL tailings facility for the full life of mine. Our strategy is to continue stockpiling lower grade ore, which stood at 7.1 million tonnes at year-end, providing us with contingency source of ore during high rainfall events.

TZ is transitioning into the steady-state phase typical of mature operating mines, where the focus shifts to continuous improvements in productivity and cost management. This year, we plan to make modest investments in the plant to address remaining bottlenecks, including tailings pumping capacity while continuing broader optimization initiatives to increase throughput.

On safety, TZ closed the year with a lost time injury frequency rate of 0.15 with 2 lost time incidents recorded during the year. While this represents solid performance, our objective remains 0 harm, and we continue to focus on strengthening safety culture and systems across the operation. In the fourth quarter, the commissioning of additional mining equipment in late Q3 contributed to total mined tonnage reaching 6 million tonnes, an 18% increase over the previous quarter.

This higher production supported increased waste stripping, resulting in a low annual strip ratio of 1.86. Mills throughput for Q4 averaged 11,711 tonnes per day or 90.6% of nameplate capacity with a head grade of 1.49 grams per tonne. Gold production for the fourth quarter increased by 2% compared to the third quarter, primarily driven by higher process grades.

Mill throughput during the quarter was impacted by unplanned downtime in November following a failure of a ball mill motor bearing. Gold recovery rates have also improved, achieving 91.8% during the fourth quarter and 90.6% for the full year 2025, supported by increased plant stability and reduced variability in the flotation circuits operating parameters, largely due to the implementation of an expert control system.

Total cash costs were $748 per ounce, slightly exceeding the upper end of our 2025 guidance. This was mainly due to higher royalty and production tax expenses, approximately $54 per ounce, driven by an average realized gold price of $3,374 per ounce and was partially offset by stable underlying site operating costs.

Mining costs averaged $324 per tonne mined, while processing costs were $12.53 per tonne milled. All-in sustaining costs were $1,155 per ounce, remaining within the 2025 guidance. Operating costs at TZ have largely been stable in 2025, with maintenance parts representing about 29% of our cash costs, followed by labor at 25%, which has increased by approximately 5% year-over-year. Fuel is only about 10% and power is only about 5% of our cash costs.

With that, I'll turn it over to Julie for the financial highlights.

Thanks, Ulrika, and good morning. For the full year, we generated $581 million in revenue and $288 million in net income or $1.27 per share. On an adjusted basis, net income were $283 million or $1.25 per share. Adjusted EBITDA totaled $419 million, representing a 72% margin and reflecting the strong operating performance of TZ in its first full year.

This highlights the strength of cash conversion from EBITDA into free cash flow even in the first year of commercial production. We remain fully on hedge and our results reflect full exposure to the gold price. Operating cash flow before changes in noncash working capital was $122 million in the fourth quarter, an increase of $15 million over the third quarter.

After changes in working capital, cash provided by operating activities was $96 million in Q4 and $308 million for the full year. Sustaining capital expenditures for $53 million for the full year were slightly below guidance, primarily because spending on certain major components was deferred into 2026. Capitalized exploration expenditures totaled $5 million in the fourth quarter and $16 million for the full year, comprising $9 million at Oko, $3 million at Gurupi and $4 million at TZ.

Capital expenditures at Oko West totaled $346 million in 2025, of which $187 million has been disbursed. We ended the year with a closing cash balance of $135 million. Subsequent to year-end, we completed a strategic private placement with La Mancha for approximately $315 million. The proceeds were used to fully repay the revolving credit facility, leaving the corporation with a clean undrawn facility and strong financial flexibility as we advance Oko West.

Turning now from cash flow to capital expenditures. Slide 12 breaks down our spending across sustaining capital, regional exploration and development capital. At TZ, sustaining capital was guided at $60 million to $70 million with actual spend of $53 million. The variance reflects timing as certain major components for mobile equipment originally planned for 2025 were deferred to 2026 due to procurement scheduling and operational priorities.

These items are incorporated into the 2026 TZ sustaining capital guidance. On Oko West, development capital was deployed for $203 million compared to full year guidance of $200 million to $240 million. Spending was weighted towards the second half as expected following formal construction approval in October and accelerating project momentum through year-end. Thanks.

With that, I'll hand it back to Louis-Pierre to discuss operation guidance and progress at our projects.

Thank you, Julie. In January, we released operational guidance for 2026 and 2027, outlining average annual production of 200,000 ounces of gold at TZ over the next 2 years. This is expected to be achieved at peer-leading cash cost of $750 per ounce and all-in sustaining cost of $1,190 per ounce.

Gold production at TZ for 2026 is estimated to be between 160,000 to 190,000 ounces and 200,000 to 235,000 ounces in 2027, representing an increase of approximately 25% over 2026 production at the midpoint of guidance, driven by a full year contribution of higher-grade Phase 2 ore at TZ.

Total cash costs and all-in sustaining costs in 2026 are expected to increase by 7% and 15%, respectively, relative to 2025 and then decrease steadily starting in the second half of 2026 and through 2027. Total cash costs and all-in sustaining costs are expected to improve materially in 2027, with cash costs and AISC projected to decline by approximately 14% and 21%, respectively, compared to 2026 at the midpoint of guidance.

This year represents our largest ever investment in exploration with approximately $46 million planned across the portfolio, including roughly 110 kilometers of diamond and RC drilling. Of this, $21 million is allocated to Gurupi, $16 million to Oko and $9 million to TZ. Our strong cash flow generation enables us to support this level of investment in exploration while simultaneously funding the construction of Oko West. At Oko, the early works program completed last year enabled key infrastructure milestones, including construction of the access road, construction of the permanent camp and substantial completion of the barge landing, an important component of the project's logistics network.

Detailed engineering reached 57% at year-end, supporting the procurement of major packages, which is largely complete. We closed the year with $424 million committed, representing 42% of the total project budget and significantly derisking overall capital execution. Total CapEx for 2026 are projected to range between $514 million and $568 million as project activity ramps up, including the commencement of major construction at the process plant, supporting infrastructures and the initiation of mine preproduction activities.

Substantially, all major equipment is expected to be delivered during 2026. Capital expenditures in 2027 of approximately $230 million represent the remaining balance and include commissioning activities and preproduction revenue. Main construction activities are now underway in the process plant area with the grinding circuit representing the project's critical path.

Progress remains on schedule with one of the largest concrete pours for the SAG mill now complete. Both mills are expected to arrive in Guyana in July 2026 with assembly to be completed by the end of August 2027. Our self-perform execution model provides strong control over schedule and costs, and the project remains on track to meet budget and time line targets.

First gold is expected in the second half of 2027 with commercial production targeted for 2028. Despite being in full construction, we've maintained exploration efforts to continue unlocking the full potential of the Oka West project. Following the completion of infill drilling to support the feasibility study, exploration drilling has identified extensions of the mineralization outside of the mine plan, which are expected to contribute to future increases in mineral resources and reserves. Positive results have been achieved to the north in Block 1 along space structures within the pit previously modeled as waste and at depth in Block 5.

In addition to the main Oko West trend, we've identified a compelling soil anomaly along the Northwest expansion. This area was incorporated into the land package in March 2024 and is currently a key focus of our exploration activities where we see continued upside. The Northwest extension is located approximately 10 kilometers from the planned infrastructure and could be easily integrated into the future of the Oko West project.

Let me now turn to Gurupi, our advanced exploration assets in Brazil. The project hosts a substantial existing resource of 1.8 million ounces indicated and 0.8 million ounces of inferred based on approximately 145 kilometers of historical drilling. In 2025, we made important progress in reactivating the project. A historical injunction was lifted and we reestablished positive relationships with local stakeholders, which allowed us to successfully restart drilling in the region in November.

This was a significant milestone for the project, particularly as there's been no drilling for several years. The broader land package represents a district's trial opportunity. It covers roughly 80 kilometers of highly prospective Greenstone belt with a defined soil anomaly extending over approximately 55 kilometers.

Our initial focus is to expand mineral resources around the known deposits in order to support the development of a larger and more robust project, while continuing to test the broader exploration potential across the belt. Last year, surface work, including trenching and auger drilling identified several gold-bearing structures northwest of Mandioca.

This area is now a key focus of our drilling program alongside extensions in and around the existing resources at Cipoeiro and Chega Tudo, where we currently have 2 diamond drill rigs and 1 RC rig operating. In 2026, we plan to invest $21 million in exploration to support both brownfield and greenfield programs.

Our objective is to grow the resource base and advance the project towards an updated mineral resource estimate and the PA in the second half of the year. We believe this work will highlight the scale and value of Gurupi, which is not currently well reflected in GMIN's valuation.

TZ's total cash costs of approximately $748 per ounce compared favorably to a peer average of over $1,000 per ounce for mid-tier producers, representing roughly a 30% cost advantage driven by structural characteristics of the operation. This low-cost profile is underpinned by ore body geometry, established infrastructure, strong labor productivity and processing circuit efficiency, all of which are expected to remain consistent.

At $4,000 per ounce of gold, TZ is generating among the highest free cash flow margins per ounce of any open pit gold mine of comparable scale in the Americas. Looking ahead, GMIN is entering an exciting growth phase with consolidated production expected to surpass 500,000 ounces of gold annually by 2028, representing roughly a threefold increase from 2025 levels.

Free cash flow generation in '26 and '27 is expected to fully finance the development of Oko West at current gold prices. 2028 represents a clear inflection point in free cash flow as Oko West begins contributing with projected free cash flow of $1.2 billion based on $4,000 per ounce gold price.

This level of cash generation is expected to position GMIN to continue self-funding future growth initiatives, while also assessing opportunities to return capital to shareholders. 2025 was a strong execution year across operations, development and exploration. At TZ, we achieved steady-state production at nameplate capacity while maintaining cost discipline.

At Oka West, we completed the feasibility study, secured key permits and received Board approval to move into construction. We also advanced engineering and procurement, significantly derisking the project. At Gurupi and across the portfolio, we delivered on exploration programs generating encouraging results.

Overall, the year was about advancing Oka West and reinforcing a solid operational base at TZ. For 2026, our priorities are clear and build on the strong foundation established in 2025. At TZ, the focus is on operating well with Phase 2 scheduled to deliver higher-grade ore and continuing targeted optimization work.

At Oko West, the focus is on execution through the peak construction year with ongoing progress across the process plant, site infrastructure and other critical path activities as we ramp up the workforce on site to reach a peak of about 2,000 people by year-end. Across the portfolio, we will also advance the largest exploration program in GMIN's history with updates expected from TZ, Oko West and Gurupi, including an updated mineral resource estimate and PEA for Gurupi.

Our strategy remains to build, operate and explore for more. Before we open the line for questions, I would like to leave you with these images from Oka West. The project continues to advance across all major work fronts with steady progress on critical infrastructure and plant construction.

In '25, we demonstrated that we can operate and in '26 and '27, our focus is to build again, while continuing to advance exploration across the portfolio. I want to thank our teams in Brazil, Guyana and in Canada for their work throughout 2025. And I also want to thank our shareholders for their continued support.

With that, I'll turn the call back to the moderator to begin the Q&A.

[Operator Instructions] Your first question comes from the line of Ralph Profiti with Stifel.

Louis Pierre, with respect to process improvements at the TZ plant, you specifically mentioned some of the tailings capacity and pumping improvements. Just wondering, if we're going to see some of those benefits in 2026? Or is that more embedded in 2027 AISC guidance?

Yes, that's sustaining CapEx work that we're going to be doing, implementing mostly in Q2 and expecting that to be effective in the second half of this year. So that's the current timing for that work.

And that's included in existing guidance?

Correct. It is.

Excellent. Okay. Great. Great. As a follow-up, I'm just wondering how you're feeling around logistics around the SAG delivery in July of 2026. So just wondering if there's any sort of seasonal river or fluctuations around sort of uncontrollable scheduling risks that you're seeing early signs that could be a risk?

No, not really. I mean our risks are -- lie mostly with our suppliers, just making sure that they deliver on the schedules that we have. But because those are critical path items, we typically do very close follow-ups with suppliers that are on our critical path.

And so far, everything is scheduled to arrive on time. But yes, with respect to logistics, the river itself is not seasonal. I mean we can barge all year long. It's -- there's really no major issue in terms of annual disruptions in terms of logistics.

Your next question comes from the line of Fahad Tariq with Jefferies.

At TZ, can you just talk about maybe how plant throughput and recoveries are trending in the first quarter?

Yes. Plant throughputs so far have been really in line with our plan, with budget. So we've had good plant availability, good production. As we guided earlier this year, the first half has lower grades, which come with a slightly lower recovery. There is a relationship between grade and recovery. But yes, basically falling very much in line with our current plan.

Okay. And then just on 2026 AISC guidance, I know it's at $4,000 an ounce. Can you just -- maybe I missed it, but the sensitivity of the AISC for every, let's say, $100 an ounce change in the gold price or whatever the sensitivity is that you can share?

Yes. I mean we're how should I say, 1.5% royalty to government and 1.5% to third parties. So we do have a low kind of royalty exposure at TZ. So we'd have to just run the math quickly. But yes, it's a low sensitivity. And this year, obviously, we're using $4,000 per ounce, which is more in line with current gold price environment compared to the budgeting exercise of 2025, where we saw the gold price go up quite significantly in '25.

Okay. Okay. And then just maybe lastly, just on Oko West development, any impact from the conflict in the Middle East? Like is that impacting anything in terms of pricing, supply chain, et cetera?

Not really just in the sense that we don't have like materials coming out from that region of the world. So we don't have any like disruptions in terms of logistics. So no real impact on that front. Basically, in the construction phase, we're obviously consuming some fuel for equipment and logistics and whatnot, but that's a very small percentage of our overall CapEx.

And then when it comes to the fuel price leaking into the pricing of products, I mean, we do have most of all our major capital items already procured and locked in at this point. So very little exposure for the main equipment packages for the project.

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

LP, you just referred to the known impacts from the conflict with regards to logistics and fuel being a very small component of Oko West CapEx. Could you say some more about TZ and how you're thinking about fuel prices and sensitivity to fuel prices there?

Yes. That's something that we have been looking into just to understand our sensitivities for both projects. And basically, for TZ for 2025, fuel was really like 10% of our cash costs. So if you assume a $10 a barrel increase, that translates to about a $10 per ounce increase in our all-in sustaining cost. So it's not very sensitive. And obviously, when it comes to power consumption, we're connected to the grid. So we're not -- it's not a fuel-based electricity price.

And at Oko West, I see you have nearly 1,000 workers on site. So it looks like you're having some success with staffing there. You also mentioned that you're going up to 2,000 by year-end. So anything else that you could add about just how labor availability is in Guyana?

Yes. I'd say this year is obviously the ramp-up year in terms of construction. And so essentially, every month, we're hiring 100 to 150 people onto the project. So yes, we've continued on that trend.

As of the end of February, we've exceeded 1,200 people on the project. So yes, we're continuing to make good progress and align with our plans. But yes, we've been able to find the labor that we need. And we do have the ability to bring in experts that act as trainers, supervisors. And so that's been a key part of the team that we put together at Oko West.

Next question comes from the line of Andrew Mikitchook with BMO Capital Markets.

All kinds of great questions have already been asked, but maybe you could just ask you to speak to what investors should expect to see occur in terms of construction in the next quarter. I guess Q1 is more or less done and you showed us the great pictures. But what -- moving ahead, 3 months, what will this all look like?

Yes. I mean we're continuing to make progress in the plant. So a lot of concrete work is being done. We're going to be starting on the CIL circuit concrete work Primary crusher excavation is complete now. So yes, we're really moving into the plant area.

And this quarter and the upcoming quarters, we're essentially starting our mining preproduction activities. So stripping the pit, starting to mine waste material and actually we will likely be stockpiling some of the first ore in the upcoming quarter, Q2.

Okay. And then just switching to TZ. I think you quoted from my notes here, 7.1 million tonnes of stockpile either at year-end or currently. Is that in line with expectations? Did that include unexpected low-grade ore? Or how should we think of that number?

Yes. I'd say we have encountered a bit more low-grade ore than we expected compared to our plan. So that's -- in that sense, we've had a bit of a positive reconciliation versus our reserve model. So that's a bit higher than we had expected to be at this point. So nothing wrong with that in the sense that, that's all ore that gets stockpiled for processing at really the end of the mine life.

Next question comes from the line of Jeremy Hoy with Canaccord Genuity.

My [indiscernible] Garupi, looking ahead to the PEA coming later this year, are you able to share any high-level targets or metrics? Anything that might give us an indication of what the scale and scope of that project could look like?

Yes. I mean we'll be doing a lot more of that work in the next few months. But our expectation is that this will be a project that will be slightly larger than TZ in terms of scale and production. And that's almost basically supported by the resources that we have currently on the project.

So yes, we see it being at least 175,000 ounces based on the current resources. And then based on exploration success and our ability to continue growing the resource, that could be a larger number, achieving close to 200,000 or more. So that's the current thinking and sizing when it comes to Garupi at this point.

That's really helpful color. Last one for me, I guess, is on M&A. I get asked all the time, what you guys are going to buy. Could you just provide the latest thinking on potential M&A, potential target regions, et cetera? I think the strategy there has been pretty consistent, but I appreciate any update there.

Yes. I mean, look, we're always doing our homework, when it comes to looking at next opportunities that could fit in our portfolio. But yes, I think South America continues to be a sweet spot for us. We do like Brazil in the jurisdictions that we're currently in that we know very well. So those are our key target areas.

But yes, I think gold price volatility is definitely something that makes M&A a little more difficult. But yes, I think with gold prices stabilizing and remaining a bit more stable for a longer period could support M&A activity across the sector in general.

Yes. It's been a roller coaster...

And there are no further questions in the queue. So that concludes GMIN's Q3 2025 Conference Call. Thank you again for joining us. Stay connected via e-mail list and social media updates. Enjoy the rest of your...