Lundin Gold Aktie

Welcome to the Annual General Meeting of the Shareholders of Lundin Gold. I am Jack Lundin, Board Chair of Lundin Gold. Today's meeting is being held as a hybrid meeting, taking place online and in person in Vancouver, BC in order to facilitate increased shareholder attendance and participation.

The matters to be considered today as set out in our circular are: one, the receipt of Lundin Gold's 2025 financial statements; two, the reappointment of PwC as the company's auditors for another year; three, the election of directors; four, a say-on-pay vote and five, any other matters properly brought before the meeting. In accordance with the bylaws of the company, I will act as Chair of the meeting; and Rachelle Tilden, Director, Legal and Corporate Secretary, will act as Secretary of the meeting.

With the consent of the meeting, Marissa Ventana of Computershare will act as scrutineer of this meeting. If you have an objection or question regarding the appointment of the scrutineer. Virtual attendees now have 5 seconds to submit your objection via the message link and in-person attendees may raise their hand. For those here in person, if you have proxies not yet deposited, please identify yourselves and the shareholder you represent for the scrutineer to record.

As no objections have been received, I will now move to the constitution of the meeting. Would the secretary please assure us that the meeting has been properly called.

The notice of this meeting, together with the form of proxy and Management Information Circular have been made available to each director of the company, the auditors of the company, and each intermediary and registered shareholder of common shares of the company on record on March 16, 2026, which was the record date for this meeting. These documents are available for any shareholder to read. Therefore, Mr. Chair, this meeting has been properly called.

Unless there are any objections, we will dispense with the reading of the notice of meeting.

As no objections have been received, I dispense with the reading of the notice and will now move to the scrutineer's report and quorum of the meeting. I am advised that according to the report of the scrutineer, a quorum is present. The final scrutineer's report will be included with the minutes of this meeting. I now declare that this meeting is regularly called and properly constituted for the transaction of business.

Before we consider the business of the meeting, as this meeting is in a hybrid format, I would like to comment on the voting procedures and questions relating to matters of business. To facilitate the formal business of the meeting, Rachelle Tilden and Chester See will propose or second the formal motions. Shareholders and duly appointed proxy holders attending in person may ask questions with respect to motions by raising their hand. Questions for those shareholders and duly appointed proxy holders participating online can ask using the Lumi platform.

At any time during the meeting, duly appointed proxy holders and registered shareholders attending online who have not already provided voting instructions or appointed a proxy holder that are logged on and wish to vote their shares may do so using the Lumi platform. The polls are now open and will remain open until just before the conclusion of the formal business of the meeting.

If you are a shareholder or a proxy holder attending online and you have voted your shares prior to the start of the meeting, your vote has been received by the scrutineer and there is no need to vote those shares in the meeting. Any votes cast by electronic ballot or in-person will supersede any votes previously submitted by proxy. Therefore, we recommend that shareholders that have already voted by proxy do not vote during the meeting.

Last year's Annual General Meeting of the shareholders of the company held on May 9, 2025, are available for inspection by any shareholder. I now ask for a motion to dispense with the reading of the minutes of the last Annual General Meeting.

So moved.

Is there any discussion on this motion? I will proceed to the next item of business. As the next item of business, I now present the audited financial statements of the company and the report of the auditors thereon for the year ended December 31, 2025. The audited financial statements and auditor's report have been previously distributed to shareholders who requested such statements. Are there any questions dealing -- are there any questions dealing with the financial statements or the auditor's report? For those attending virtually, you have 5 seconds to submit your question via the message link starting now.

As there are no questions, I will proceed to the next item of business, appointment and remuneration of auditors. So the next item of business is the appointment of auditors of the company for the ensuring -- for the ensuing year and to authorize the directors of the company to fix the remuneration of the auditors.

It is proposed that PricewaterhouseCoopers be appointed as the auditors of the company. Accordingly, I ask for a motion that PricewaterhouseCoopers be appointed auditors of the company until the next Annual Meeting of the Shareholders and that the Board be authorized to fix their remuneration.

So moved.

I second that motion.

Are there any questions? You have 5 seconds to submit your question via the message link starting now. As there are no questions, I would now ask those shareholders and proxy holders who have not already done so to vote.

The results of today's voting will be announced at the end of the meeting. We will now proceed with the election of directors for the coming year. The circular, which was made available to shareholders through notice and access contains the names of and information about management's nominees to the Board of Directors. I now declare the meeting open for nominations for directors.

I would like to nominate Jamie Beck, Carmel Daniele, Gillian Davidson, Ian Gibbs, Melissa Harmon, Ashley Heppenstall, Scott Langley, Jack Lundin and Erin Workman, all to be directors of the company to hold office until the next AGM or until their successors are elected, subject to the provisions of the company's bylaws.

According to the company's bylaws, the company must receive advanced notice of nominations of directors by shareholders. The company did not receive notice of any director nominations in connection with this year's meeting within the time periods prescribed by the bylaws. Accordingly, the only persons eligible to be nominated for election to the board are the nominees named in the circular.

I now ask for a motion that the proposed nominees be elected as directors of the company.

So moved.

I second that motion.

The vote on the election of -- for directors is to be conducted by way of ballot. I would now ask those shareholders and proxy holders who have not already done so, to vote. To vote on this item of business online, you will find listed the names of the 9 nominees for election to the Board of Directors listed in the circular. For each nominee, you may vote for or against that nominee. If you have already provided voting instructions or submitted a proxy, you do not need to vote on this matter. As noted earlier, voting results for all resolutions will be summarized at the end of the meeting.

The next item of business is to consider and if thought fit, approve a nonbinding advisory resolution approving the company's approach to executive compensation. The company's compensation discussion and analysis is set out on Pages 47 through 72 of the circular. The next -- the full text of the resolution is set out on Page 13 of the circular. I'll now ask for a motion to approve the nonbinding advisory resolution approving the company's approach to executive compensation.

So moved.

I second that motion.

Are there any questions? Virtual attendees, you have 5 seconds to submit your question via the message link starting now. As there are no questions, I would now ask those shareholders and proxy holders who have not already done so, to vote. As noted earlier, voting results for all resolutions will be summarized at the end of the meeting.

That concludes the items of business set out in the notice of meeting. For virtual attendees, the polls are still open. And if you are a registered shareholder or proxy holder and have not submitted your vote by ballot or proxy, please do so now by selecting the applicable voting option on the voting panel. We will pause for 15 seconds to permit voting before closing the polls on all items of business.

Voting on all motions have now closed. I have been advised by the scrutineer that the proxies deposited for the meeting have been voted in favor of all resolutions and that the requisite majorities have been obtained for the election of the nominated directors and the appointment of auditors. In addition, the shareholders have voted for on a nonbinding advisory basis, the company's approach to executive compensation as set out in the circular.

Results of in-person votes and votes compiled through the polls taken be included with the minutes of this meeting and be posted on the company's SEDAR profile at www.sedarplus.ca after this meeting. The formal items of business for this meeting have now been dealt with. Is there any further business? For virtual attendees, if you would like to raise any further business at this meeting, you can do so by using the message link. You have 5 seconds to submit any further business using the message link. As there is no further business and unless there is any objection from those in attendance at this meeting, I shall now declare the formal meeting terminated.

As there are no objections, the meeting is now terminated. We won't be holding an information session following the meeting today. However, Lundin Gold's quarterly results call was held yesterday. If you were unable to attend and would like to listen to the call or access the webcast, we invite you to visit the Investors page on Lundin Gold's website, where the recording and related materials will be available later today.

Thank you again for your ongoing trust and investment in our company.

Good morning, ladies and gentlemen, and welcome to the Lundin Gold's Q1 2026 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, May 7, 2026.

I would now like to turn the conference over to Jamie Beck, CEO. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you all for joining us today. I'm joined by Terry Smith, our Chief Operating Officer; and Chester See, our Chief Financial Officer. We're going to take you through our results for the first quarter of 2026.

Please note Lundin Gold's disclaimers on this slide. The discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward-looking information and statements section of our press release. Lundin Gold is a U.S. dollar reporting entity, and all amounts in this presentation refer to U.S. dollars unless otherwise indicated.

Q1 was a strong start to the year. At Fruta del Norte, we delivered solid operating performance, generated significant free cash flow and continued to advance growth and expansion initiatives across the district. Importantly, this quarter reflects the front end of a back-end weighted year, both operationally and in terms of grades, and we remain on track to deliver within our previous issued 2026 guidance.

In the first quarter, we produced approximately 120,000 ounces of gold, selling just over 115,000 ounces. The mill processed nearly 497,000 tonnes at a record average throughput of 5,520 tonnes per day, reflecting continued optimization and strong plant performance. Costs were in line with expectations, and our margins remained robust. We generated $370 million in operating cash flow, $349 million in free cash flow, and that increased our cash balance to over $700 million.

And this is after paying quarterly dividends of $278 million. We've also declared a Q1 dividend of $1.21 per share, totaling approximately $293 million. Note that this reflects 100% of normalized free cash flow for the quarter, which is above the fixed component of our dividend policy.

In addition to the cash dividend, we announced the silver stream-for-equity transaction with LunR Royalties, which we expect to be distributed to shareholders as a dividend in kind following closing. Chester will speak to this in more detail later in the presentation.

Beyond operations and cash flow, we continue to advance our growth pipeline, including ongoing work for our mine-to-mill expansion study, evaluating opportunities to increase throughput beyond 5,500 tonnes per day while incorporating FDNS into the mine plan. In addition, we made meaningful exploration and conversion drilling progress, particularly at FDNS, FDN East and FDN, where several standout drill results further reinforce the scale and quality of the district.

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

Thanks, Jamie, and good morning, everyone. Before we turn to operational and financial results, I want to start where we always start, with our people. Nothing matters more than every employee and contractor at Fruta del Norte going home safe at the end of every shift.

During the quarter, we recorded 1 lost time injury, our first in approximately 15 months, along with 3 medical treatment incidents. We take each of these seriously, and the lessons from each event are being shared and acted on across the operation. Our focus continues to be in the field, leadership visibility, hazard identification and reinforcing the right and responsibility of every worker to stop a job that doesn't feel safe. Safety is and will remain our first priority.

Turning to operations. The quarter reflected steady performance underground and continued momentum at the mill. We mined steadily and processed just under 500,000 tonnes at an average head grade of 8.4 grams per tonne with recoveries of just over 89%. The plant delivered a new quarterly record of 5,520 tonnes per day, building on the throughput gains we've achieved over the past several quarters.

As Jamie mentioned, 2026 production will be back-end weighted. Output is expected to step down in the second quarter as we complete planned plant maintenance before recovering in the second half as higher-grade stopes come into the sequence. Based on Q1 results and our current forecast, we are reaffirming full year guidance of 475,000 to 525,000 ounces.

The FDNS mine-to-mill study remains on track for completion by year-end. In parallel, we are prepared for underground development to start towards the FDNS deposit. We are also encouraged by the exploration results we released earlier this week, which included the highest-grade intercepts ever recorded at FDNS and continue to reinforce our confidence in the deposit.

Now over to Chester to speak to the financials.

Thanks, Terry, and good morning, everyone. The first quarter delivered strong financial results, reflecting solid operational performance and higher realized gold prices. Net revenues were $567 million. Income from mining operations totaled $421 million, and net income was $273 million or $1.13 per share. We generated EBITDA for the quarter of $424 million. Higher gold prices drove strong margins despite increased royalties and statutory profit sharing.

Cash operating costs averaged $987 per ounce, and AISC averaged $1,114 per ounce, giving us a strong AISC margin of approximately 78% in Q1. Free cash flow in Q1 totaled $349 million or $1.44 per share, which is more than double the first quarter last year, driven primarily by strong operating cash flow with modest capital spending. This level of free cash flow continues to support our increased capital returns and organic growth while maintaining a strong balance sheet.

From a balance sheet perspective, at March 31, 2026, we had working capital of $572 million, which is largely consistent with year-end 2025. During the quarter, we generated $370 million in cash from operating activities and ended with $704 million in cash after paying $278 million in dividends.

Consistent with our capital allocation framework, the Board declared a quarterly dividend of $1.21 per share, consisting of $0.30 fixed dividend and a $0.91 variable dividend, representing 100% of normalized free cash flow, which is consistent with the payout levels we have made over the last several quarters and above our policy minimum of 50%. The dividend will be paid on June 25 to shareholders on record on June 10. For more details, please refer to the May 6 dividend announcement.

During the quarter, we also announced a silver stream-for-equity transaction with LunR Royalties. This transaction monetizes a noncore silver byproduct at Fruta del Norte while preserving full gold exposure. On closing, FDN will receive -- Lundin Gold will receive 50.5 million LunR shares, all of which will be distributed to shareholders as a dividend in kind. The stream is effective March 1, with closing expected before the end of Q2.

With that, I'll turn the call back to Jamie.

Excuse me. Jamie's line was disconnected.

[Technical Difficulty]

Okay. This is Brendan Creaney, VP, Corporate Development and Investor Relations. I'll speak on Jamie's behalf.

Excuse me. Jamie is now back.

Okay. Great. Jamie, are you with us?

I am. Yes, just let me know where you are. I got disconnected.

Okay. We just got back to the transition to yourself on Slide 15, talking to exploration.

Great. Thank you very much, Brendan. So starting with FDNS, where Q1 delivered some of the strongest results ever recorded on the Fruta del Norte property. Recent conversion intercepts included the second and fourth highest-grade thickness intercepts ever drilled across the entire FDN district, just remarkable. Highlights include 7.5 meters of 668 grams per tonne gold, as well as 8.25 meters of 523 grams per tonne gold. These results further confirm the exceptional grade continuity within the FDNS deposit and continue to support our confidence in future reserve growth as development here advances.

On the exploration side, drilling outside of the current mineral resource envelope confirmed mineralization continuity along the downdip extension, highlighting additional growth potential beyond the defined resource. A key exploration intercept for the quarter was 5 meters at 23 grams per tonne gold. Overall, FDNF continues to demonstrate both near-term conversion upside and longer-term expansion potential.

Turning to FDN East. Exploration drilling in the quarter focused on extending the deposit footprint and testing newly identified vein sets. Drilling confirmed northward continuity beyond the inaugural mineral resource and included some of the highest-grade intervals ever recorded at FDN East. Highlights here included 4.2 meters at 169.9 grams per tonne, as well as 5.9 meters at 20.3 grams per tonne. In addition, the drilling demonstrated continuity of newly identified veins to the east, expanding the overall footprint of the deposit. This FDN East footprint now extends approximately 500 meters east-west, 800 meters north-south and remains open to the north, east and south, positioning it as a strong complementary growth opportunity directly adjacent to our existing infrastructure.

Lastly, at FDN, near-mine exploration drilling continued to target areas close to the existing underground infrastructure with a clear potential for near-term mine plan flexibility. We've intersected the upper extension of the FDN mineral envelope, supporting potential expansion above the current mining horizon. Importantly, mineralization was encountered along the Suarez conglomerate contact, confirming continuity above the existing mineral envelope. Key intercepts this quarter included 23.6 meters at 10.6 grams per tonne, as well as 7.9 meters at 8.3 grams per tonne. These results reinforce the opportunity for incremental near-mine additions that could be integrated efficiently into our future mine plans.

I'd like to close with a brief update on our 2026 objectives, which remain firmly on track. We remain focused on health, safety and environmental performance. Operationally, we are on track to deliver our 2026 production and cost guidance, with grades expected to improve through the back end of the year.

We are targeting a record 133,000 meters of drilling in 2026 and have completed approximately 30,000 meters of that already. The mine-to-mill expansion study continues to advance, with an integrated investment decision targeted for late 2026. At FDNS, mineral reserves are now published, and the initial underground development is underway.

Finally, we remain committed to returning capital to shareholders, as demonstrated by the strength of our dividends. Overall, it was a great start to the year across operations, growth, exploration and capital returns. Our 2026 objectives remain firmly on track.

Operator, with that, we are now ready to take some questions.

Your first question comes from Fahad Tariq from Jefferies.

I noticed in the first quarter, the recoveries are trending slightly below the full year guidance of 91%. Can you just talk about maybe what's leading to that? Is it the fact that there are stockpiles being blended in, in the first quarter? Or was it something else to do with the characteristics of the fresh ore?

Yes. Maybe, Terry, would you mind fielding this one?

Sure, Jamie. Yes, there's a geology component to that, Fahad, as we've been talking about in previous quarters. It's pretty tough for us to predict that geological variability. And we also see that as we push our throughput up, recoveries drop off a little bit as well. So as we're pushing our mill, there's some limits on the recovery side. So those are the two pieces to that.

Okay. And then maybe just as a follow-up, would it be fair to assume like a slightly lower recovery for the rest of this year, just from a modeling perspective, relative to the 91% guidance?

We're sticking with our recoveries for now. There's a few variables that we can play with there, grade being one of them, throughput being the other, and so we can solve for our production requirements that way. But we don't want to give up on recovery. So we're sticking with our numbers for now.

Okay. And then maybe just lastly, there was a comment in the press release about resequencing -- mine resequencing in the second quarter. Can you just -- is that new? I was just trying to understand if that was part of the plan or if something led to that? And if it is new, just maybe talk through what led to the resequencing?

Sure. Periodically, we need to resequence the mine for a variety of reasons. In this instance, there were some geotechnical challenges that we encountered. And so we needed to back out of a particular stope that had some good grade and deferring it for later in the year. So we -- that's pretty normal course for an underground mine, and we've had to do that in the past at Fruta. So that's what's impacting Q2, and that's the wording that we have in our release. That's what's behind it.

Your next question comes from Jeremy Hoy from Canaccord Genuity.

Looking ahead to the mine-to-mill study, you guys in the past have mentioned the potential to push throughput beyond this 500 tonnes per day level. I know the disclosure was a little light on that this quarter. I was just wondering if you could provide an update on your thinking around the study and around -- where throughput might go in the future?

Yes. Thanks, Jeremy. We're not being sort of purposely coy here. I think we're still working through all of the various sort of trade-off studies and advancing the engineering as we sort of hone in on what we think might be the optimal rate.

So we'll come out with sort of more information regarding that mine-to-mill expansion study in the second half of the year, trending towards the later part of the second half, and give some color around progress there, where we landed on throughput, where we're going to land on CapEx, what we can think in terms of how that might impact our mine planning. And it's going to be concurrently tied with our views on how we may be able to bring FDNS into the mine plan. So it's a bunch of sort of integrated things, and we'll have more and better information for you later this year.

Yes. Totally understood. You have to do your work first. The other thing I'd like to ask about is the porphyry opportunities and another area where there's a lot of work to be done, drilling, et cetera. But wondering if you guys might be able to give us some sort of rough time line on upcoming milestones related to that, including a potential initial resource?

Yes. It's -- I spent a lot of my career working on big copper porphyries. And what I can tell you is we're pretty darn excited about what's shaping up at FDN here. It's just remarkable in a short period of time. We have started the sort of process of putting some very, very conceptual pit shapes around those, Jeremy. And as you can imagine, in doing so, that identifies opportunities, opportunities where maybe there's waste material that sits within those pit shells that we could really easily drill off and look to improve.

So we're pretty excited by the initial results. I think there's some really low-hanging fruit in terms of some additional opportunities that could potentially make that even better. So we haven't really settled on a strategic -- when we're going to come out with an initial resource. This will be always a bit of a trade-off is how much -- do you want to put a pin in it today, or how much sort of low-hanging fruit could really be added to make it look even better on our first cut. Because you really only got one shot at putting up that initial resource. So still to be determined, but I can tell you, we're pretty darn excited.

Okay. Well, I appreciate the color. And I guess last, just on the dividend. You guys have -- this is the second quarter where you guys have declared a dividend where you're going to pay out 100% of the normalized free cash. I guess, could you provide a little more detail on what goes into that? And I mean, short of something changing significantly, can we expect that to be the same going forward in these coming quarters?

Yes. I think you're exactly right, Jeremy. It's been a strong dividend policy and it's supported by our Board for sure, in the view that the cash being generated here in the absence of needing it for anything else in particular, should be going back to shareholders. And I think when you combine the dividends that we'll be paying over the year along with the LunR dividend in kind, this will be a remarkable year in terms of dividend yield for Lundin Gold.

So that's not to say that we don't reverse course here. And it's why we've got some flexibility in the dividend policy. If there's a need for us to start building cash, i.e., we've got something exciting from a CapEx perspective that we want to spend on or into the future, then we've got the flexibility to do that. But I think you could expect this to be the path forward, barring any changes, which for sure, we would be fully transparent and be highlighting as to why we'd be changing course.

Your next question comes from Martin Pradier from Veritas Investment Research.

My question is about -- in the first place, how many days will be the mill shutdown in the Q2? And how much of an impact we could see in the production? And the second question is, I see a lot of good results on some of the new holes. But in general, I mean, we don't see all the holes. So the question is, on average, when you have been putting new resources and new reserves, they were a little bit lower than the average grade of the existing resources -- existing reserves. Should we see something different going forward?

Yes, Martin, I appreciate your question. Thank you. I think we're anticipating about 10 days of the mill to be shut down in the second quarter. And that's going to have -- coupled with grades, as we said, it's going to be lighter than Q1. And then we'll see that -- we'll certainly see that reverse in Q3, which is forecast to be particularly strong. We won't have as many down days, and the grade comes up. So over the course of the year, these things even out, and there's just sort of fluctuations quarter-by-quarter.

With respect to the drilling, it's been fantastic. And we do release all of our drill results. They're contained hole by hole within the exploration releases. And what we'll see when we -- when you factor those into the mineral resource and reserve estimates, despite having some really, really, really spectacular results that are strong, there's also lots of results that come in more in line...

I do apologize. We experienced some technical difficulties, and Jamie's line was disconnected again.

[Technical Difficulty]

I can pick up where Jamie left off there, Martin. And I was agreeing with everything he said. So yes, the full results, when you take everything into context, bring the resource that we released more in line with what we've been seeing from Fruta all along. So while we highlight these ultra-high-grade intercepts, there are a lot of still very good intercepts that are in the mix that bring the average down. So you're correct.

Okay. And in terms of your mill capacity in the second half, you're now doing about 5,500 tonnes per day. How much more can you push that mill in the second half so to offset the -- what I think is going to be a low Q2 or what you're indicating?

I think you can expect to see us continue at the rates that we've been seeing. And the downtime that we have for the mill is routine. We have that every year to reline our SAG and ball mill. So this is -- you can take our Q1 rates and project that forward with the days that we've provided that Jamie indicated.

[Operator Instructions] Your next question comes from [ George Coelho ] from AGT Enterprises Limited.

Okay. So I have experience in manufacturing plants. The first thing, could you give us some background on what lost time accident was? And the second one is your capital plan, $21 million is 1% to 2% of the asset. Normally, good mills have 5% to 7%. I've been with Lundin since 2015, so I've seen the progression. And I am very thankful for the returns. But I am concerned as the mill gets older, it will not be able to sustain the capability or demands that are being requested of it.

Yes. Well, I can answer your question on the LTI, George. So we had an employee working in our maintenance shop welding on a scoop bucket. And there's a piece of metal that he was cutting. And when he finished cutting, the piece of metal broke loose and crushed his fingers. So he had a broken finger from that incident. So that's the nature of that one. It's too bad, and -- but there are some good lessons that we learned from that. And that's just the nature of all of our sort of improvements that we get out of these incidents. So let me know if that answers your question on that one.

And as far as sustaining capital goes in the mill, we've been investing heavily in the mill, especially in the time that I've been with the company for the last few years. We just completed a plant expansion last year. As you know, we're looking at another plant expansion that we were just talking about with this mine-to-mill study. And so that might be distorting the percentage that you're using for sustaining CapEx being applied because we're continually reinvesting in upgrading pumps and pipes and changing out pieces of equipment on the mill.

But I can assure you that our mill availability is not declining with age. In fact, it's going the other way. It's improving with age. So that's just the nature of the familiarity that we have with the mill and the skill set of our plant maintenance team. They just get better with time and can stay ahead and predict our downtime better. So -- but I appreciate your comments.

I assume this is Terry?

Yes. This is Terry.

Yes, that answers my question. But -- and I don't know how old exactly the mill is, whether it's 8 years or 12 years. But it's good to have that additional flavor of availability, and it will be paid back in the next 5 years.

And there are no further questions at this time. So Jamie is back. So I will turn the call back over to Jamie for closing remarks.

Yes. Thanks, operator, and apologies for my shoddy connection. I kept getting dropped. But I'd just like to summarize by highlighting how excited we are about the future. I think this is an asset that has proven itself over time in terms of operational excellence. It's generating significant cash flow, which we are returning back to shareholders.

Our exploration projects and conversion drilling is providing a platform for growth. And all of this is being done to the utmost responsible, environmental, social and governance concerns in the industry. So we're incredibly proud of our results for Q1 2026 and are looking forward to delivering for the rest of the year.

And with that, I'll sign off. Thank you very much.

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

Good morning, ladies and gentlemen, and welcome to Lundin Gold's Fourth Quarter and Fiscal Year 2025 Conference Call. [Operator Instructions] I would now like to turn the conference call over to Jamie Beck, President and CEO. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you all for joining us today. I'm joined here by Terry Smith, our Chief Operating Officer; and Chester See, our Chief Financial Officer. And we're going to take you through our results for the fourth quarter and full year 2025.

Please note Lundin Gold's disclaimers on this slide. This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward-looking information and statements section of our press release.

Lundin Gold is a U.S. dollar reporting entity, and all amounts in this presentation refer to U.S. dollars unless otherwise indicated. 2025 was an exceptional year for Lundin Gold marked by strong operational delivery, record financial performance and important advances across our growth pipeline.

At Fruta del Norte, we produced approximately 498,000 ounces of gold and sold 503,000 ounces. Our average head grade was 9.5 grams per tonne average recovery was 89% and the mill processed over 1.8 million tonnes at a record average throughput of 5,009 tonnes per day. These results underscore the consistency of the operation and the success of our ongoing optimization work.

Amidst strong gold prices, we remain focused and disciplined on our cost performance. For the year, cash operating costs averaged $838 per ounce, and our all-in sustaining costs averaged $1,015 per ounce, resulting in a basic margin of 72%, the combination of robust production and disciplined costs translated directly into record financial outcomes.

From a cash generation standpoint, we delivered $1 billion of cash flow from operations and $926 million of free cash flow in 2025. After paying $664 million in dividends in the year, we ended the year with $630 million in cash. For the fourth quarter, we announced a dividend of $1.15 per share or approximately $278 million, which will be payable on March 26 this year.

These results reflect our continued focus on returning capital while maintaining balance sheet strength. On growth, we achieved a major milestone with the inclusion of FDNS into mineral reserves, and we are now proceeding with underground development.

We have advanced our mine to mill expansion study that will evaluate increasing throughput beyond 5,500 tonnes per day, and we continue to demonstrate the district scale potential of our land package expanding the epithermal gold deposits at both FDNS and FDN East as well as identifying 5 copper-gold porphyries within the emerging corridor.

Turning briefly to the quarter. The fourth quarter was the strongest in our history on multiple measures. Revenue reached $527 million. Net income was $234 million, EBITDA was $364 million; free cash flow at $328 million. Earnings per share were $0.97 and our AISC margin per ounce climbed to $3,106. Each representing a quarterly record and significant year-over-year increase.

This performance reflects both continued operational excellence and our ability to capture margin in a strong gold price environment. With that, I'd like to now turn the call over to Terry to discuss our operations in more detail.

Thanks, Jamie, and good morning, everyone. I'm very proud of our team that delivered great production results yet again and we did it safely. We started 2025 with a goal to improve our safety performance, and I'm pleased to report that we recorded no lost time incidents and achieved our lowest annual total recordable incident rate ever.

This accomplishment speaks to the team's strong commitment to safe production. While preventing injuries is our objective, we continue to focus on leading indicators and getting out in the field, reinforcing behaviors that keep our people safe every day.

Operationally, the fourth quarter capped a year of consistent delivery and steady optimization. In Q4, we achieved record mining output of 501,301 tonnes. The mill processed 484,950 tonnes at an average of 5,271 tonnes per day, even with the reduced operating hours during unplanned maintenance activities at the mill.

This is a 14% increase as compared to Q4 2024 when the plant expansion project was largely complete. Our progress through the year keeps us on track toward our goal of averaging 5,500 tonnes per day in 2026.

For the full year, we achieved our elevated 2025 production guidance range of 490,000 to 525,000 ounces, finishing the year with 498,315 ounces produced. We recently added a portion of the growing FDNS deposit into our mineral reserves, marking an important step forward for this emerging ore body.

With this milestone, underground development towards the deposit will proceed. We currently anticipate nonsustaining capital of $30 million to $35 million in 2026 associated with FDNS development. FDNS is also being integrated into our mine to mill expansion study which is evaluating opportunities to sustain higher mining rates by incorporating FDNS into the broader mine plan.

Together with potential plant debottlenecking and upgrades to supporting increased throughput. Our intention is to make a single integrated investment decision in 2026 informed by analysis of the most efficient mining rates at both FDN and FDNS, along with options to increase processing capacity beyond 5,500 tonnes per day.

Further estimates for nonsustaining capital associated with FDNS development and the potential plant expansion will be provided as these studies continue to advance and are finalized.

With that, I'll turn the call over to Chester to discuss our financial performance.

Thanks, Terry, and good morning, everyone. I'll begin with our quarterly and full year financial results, then move to cash flow and our dividend. The fourth quarter delivered record results. Net revenues were $527 million and income from mining operations was $373 million.

Net income for the quarter was $234 million, and we generated EBITDA of $364 million. Free cash flow in Q4 was $328 million, reflecting strong operations and continued margin capture. For the year, net revenues totaled $1.78 billion. Net income was $792 million and EBITDA reached $1.24 billion.

We generated $926 million of free cash flow for 2025 and our cash operating cost and AISC were $838 and $1,015 per ounce, respectively. These cost metrics were above our 2025 guidance range, primarily because our guidance was based on a gold price assumption of $2,500 per ounce, while average realized gold price for the year was $3,594 per ounce or an increase of approximately $1,100.

For every $100 per ounce increase in gold price, our cash operating costs and AISC are impacted by $10 per ounce due to royalties and statutory profit sharing. This implies a $110 per ounce impact on our cost metrics well above the $60 range we used for our guidance.

Turning to free cash flow in more detail. Q4 free cash flow of $328 million contributed to a full year total of $926 million, reflecting strong underlying operating cash flow and modest capital spending requirements in 2025. Our capital intensity remains low which, combined with our cost structure and realized pricing, supports robust free cash flow generation on a sustained basis.

From a balance sheet perspective, as of December 31, 2025, we had working capital of $595 million, up from $459 million a year ago. During the year, we generated $1 billion in cash from operating activities and ended with $630 million in cash after paying $664 million in dividends. The strong liquidity position provides significant flexibility to full fund growth and continue delivering capital returns.

Consistent with our capital allocation framework and the strength of our Q4 free cash flow, the Board has declared a quarterly dividend of $1.15 per share comprised of a $0.30 fixed dividend and $0.85 variable dividend. The variable dividend reflects 100% of normalized free cash flow this quarter, above the policy minimum of 50%.

The total distribution is approximately $278 million payable on March 26 to shareholders on record on March 11 with payment on March 31 for shares trading on NASDAQ Stockholm. For a more detailed discussion of our dividend and financial results, I encourage you to read our MD&A.

I'll now turn the call back to Jamie.

Thanks, Chester. I'll spend a few minutes on our mineral reserves and resources and then provide an update on exploration. 2025 marked our largest FDN reserve and resource statement ever published with the highest contained ounces reported to date. Proven and probable reserves now stand at 5.85 million ounces, an increase of 6% year-over-year, accounting for approximately 535,000 ounces of mining depletion and the inclusion of the inaugural FDNS reserve of 0.54 million ounces.

Measured and indicated resources total 7.48 million ounces also up 6% versus 2024 and include 0.77 million ounces from FDNS, where an indicated material was confirmed at a higher grade than previously reported in the inferred category. Inferred resources now total over 2 million ounces with 0.58 million ounces added from FDNS and FDN East, including FDN East inaugural inferred resource of 0.42 million ounces.

Since 2019, FDN has produced approximately 2.9 million ounces and has added approximately 4 million ounces of new reserves relative to the 2016 estimate. More than replacing depletion over that period. And these results continue to demonstrate the quality, scale and longevity of this world-class district and its future potential.

Turning to near-mine exploration at FDNS. Conversion drilling continued to confirm strong gold mineralization and help define wider, higher-grade zones within the broader mineral envelope that support further mineral reserve expansion.

In parallel, exploration drilling outside the current resource delivered several exceptional results, including one standout Intercept of 20.65 meters at 91.32 grams per ton and also identified new veins to the south as well as extensions to the North.

Together, these results reinforce the significant growth potential of the FDNS system and highlight the ongoing opportunity to expand the mineralized footprint. At FDN East, exploration drilling has extended the footprint by approximately 150 meters beyond the inaugural mineral resource. The work confirms a broader mineralized trend than previously defined, and we see potential for extension under cover towards the Sandia porphyry.

The deposit remains an exciting and complementary opportunity immediately adjacent to our existing infrastructure. The emerging porphyry corridor on our concessions continues to deliver exceptional drilling results. At Sandia we reported our best porphyry intercept to date, 322 meters of 1.08% copper equivalent near surface.

Drilling has outlined a large and still open mineralized system with strong continuity in multiple directions. Trancaloma drilling is vectoring into a shallowing high-grade potassic core, again demonstrating the presence of substantial mineralized center with room to grow.

Castillo is a shallow copper gold discovery approximately 2 kilometers south of FDN under about 100 meters of conglomerates with a highlight intercept of 101 meters at 0.8% copper equivalent confirming the Southern continuity beneath the Suarez basin. We also advanced at Trancaloma West, where mineralization and alteration are consistent with what we see at Trancaloma and we identified Chontas as a fifth new porphyry system, some 7 kilometers south, doubling the corridor from 5 to 10 kilometers along strike.

Collectively, these results continue to demonstrate the significant district scale copper gold potential alongside our high-grade underground operation. Looking to 2026, our objectives are clear. We will remain focused on health, safety and environmental performance. We intend to achieve our 2026 production and unit cost guidance. We also plan to execute a record 133,000 meter exploration program as we continue advancing multiple growth fronts across the district.

Importantly, FDNS is now incorporated into our mineral reserves and underground mine development towards that deposit will proceed. At the same time, we continue to advance our integrated mine to mill expansion study and plan to make an integrated investment decision in 2026, informed by the analysis the most efficient mining rates for both FDN and FDNS and options to increase processing capacity beyond 5,500 tons per day.

As we continue to grow and strengthen the business, we remain committed to delivering meaningful shareholder returns through our disciplined dividend framework. Collectively, these initiatives position Lundin Gold for another year of strong performance and meaningful value creation.

In closing, 2025 was a record year for Lundin Gold. We delivered both strong operational and financial performance. We advanced key growth catalysts and returned significant capital to our shareholders, all while maintaining a clean balance sheet and a relentless focus on safety and responsible mining.

Thank you to our employees, contractors, communities, partners and shareholders for your continued support. Operator, we're now ready to take any questions.

[Operator Instructions] Your first question is from Anita Soni from CIBC Wealth Markets.

I just wanted to ask about the study that you're going to be putting out or sort of the decision that you're going to make around FDN and FDNS. Is this an incremental -- I think you said it was constrained, I guess, by the mining rate. So are you considering a step-wise change or like a 25% increase to throughput.

I assume that would mean that you're accessing this by drift? Or are you considering thinking a shaft and I think that would mean that you would probably have significantly more capital but also significantly more throughput and a bigger change to the mill. So can you just give us an idea of what you're kind of seeing at this point?

Yes, Anita, thanks for the question. No, we see this as a relatively small incremental expansion to the existing facilities. This is unlikely going to require a shaft or anything like that. We'll be able to access from existing underground development that we're moving out towards the south.

So this is really, I think, an opportunity for us to capture consistent production and see that sort of consistent production at these levels for a number of years moving forward. So being able to bring in FDNS in a complementary way, to what we're already mining at FDN. So yes, these aren't a big massive step change. This is another incremental expansion, I think that will allow us to maintain production at current levels.

Okay. So the intention is the grade will probably decline, but you're going to try to offset that with higher throughput?

Yes. I think that's natural. We've been mining FDN 11, 12 grams for the first few years. Now we're down in the 9s and the 8s. And you can see reserve grade ultimately trends a little bit lower than that. So the increased throughput will allow us to maintain that production profile.

Okay. And is there any change in terms of the way that you're -- like as you're looking at it now from a mining -- sort of like the mining methodology perspective? Is there -- it would be similar mining methodology? Or are you seeing wider widths or anything like that?

Yes. Maybe I'll let Terry respond to that one.

Sure. Anita, it's Terry here. It is similar. We do transverse stoping in FDN and so the stopes are big and wide and tall and obviously very productive because of that configuration. What we have at FDNS is not as massive an ore system as we have at FDN. This is a series of stacked veins. And so we'll need to approach it with a long-hole stoping method, but longitudinal stoping. So narrower and less productive stopes, but we'll have more of them in production at once than we do at FDN. Does that make sense?

Yes, it does. So maybe higher development CapEx and higher mining costs as we're looking at that?

Yes.

Okay. And then lastly, if you -- can you give us an idea of like what -- you said $35 million for development for this year, but what's the time frame that you expect to bring this onstream and the capital that you think you might be looking at?

Yes. I think that's -- you'll see the language in our release, Anita and what we talked about today. We'll come back sort of later on in the year with a more fully baked plan that will lay out the -- our capital expenditures for this project over the next few years. But we see this having a meaningful impact over the next 3 or 4 years in terms of bringing FDNS into the mine plan and actually starting to produce some ounces.

[Operator Instructions] And your next question is from Don DeMarco from National Bank.

Jamie and team. So I just wanted to build on the last call's question about the FDNS. Could you add a little more color on the FDNS made reserves? I mean I understand that this just reflects a portion of the inferred endowment. And so do you have rigs currently turning to convert that rest of that endowment?

And then also I see you're getting these high grades to the South which is encouraging. Do you expect to potentially put that into an inferred category at some point this year? And then also, is there any scope for those intercepts to potentially lift the grades?

Don, it's Terry. Yes, so the reserves that we converted is obviously just getting started. And our intention is to continue to convert the 2 million ounces that we have in the inferred category up to indicated with more drilling this year. So that's just part of the natural process of derisking and expanding this project.

And I know that the exploration team is going to continue to expand the inferred resource beyond what we see today. So yes to all your questions, I guess. I didn't quite catch the last thing that you asked, actually.

I think it was around some of the grades. Yes. And I mean you would have seen from the results -- some of these grades are spectacular. In fact, FDNS has returned a number of sort of the top 10 holes from a grade width prospective ever drilled on the project. 20-plus meters of 90 grams. Last quarter, we put out around 5 meters of almost 500 grams.

So just absolutely remarkable results. And I think we're seeing that -- if you compare sort of our original inferred resource on FDNS last year to where we got to today, we've seen that grade kick up. And importantly, some of the conversion drilling that we're doing from underground is helping to guide that.

I think as we continue some of these high-grade hits, we've been positively surprised from a grade perspective and anticipate that may continue moving forward.

And your next question is from Charles Ehidiamhen from Jefferies.

My question is on Bonza Sur. I wonder if you could provide some updates to us on that and when we could expect some maybe the resource estimate on that front.

I'm sorry, Charles, that your line is breaking up a little bit on our end. Would you mind repeating the question?

Yes, definitely. I was asking about Bonza Sur. So I wonder if you could provide some update on that front if we could expect any resource estimates anytime soon? .

Yes. Thank you. It's around Bonza Sur. And I think one of the things that's opening up our development at FDN South is allowing us to take a look at is, with the mine development now moving towards the South, are there going to be opportunities for us to think about taking a look at Bonza Sur a little bit differently.

You may recall, in the early days of discovery of Bonza Sur and thinking there our original thoughts were around potentially accessing that from open pit methods from surface. We now see opportunity to consider whether or not we can get at some of the higher-grade portions of that Bonza Sur deposit from underground, especially as the northern part of Bonza Sur starts pushing up against the southern part of FDN South and the success that we're having with extending FDN South with our conversion and exploration drilling. So that's going to be a priority for us to share, for sure. I'm not really going to guide you 100% at this point in time.

But if there's opportunities for us to look towards pulling some of that Bonza Sur mineralization into our future long-term planning, we'll be evaluating that pretty closely this year.

There are no further questions at this time. I will now hand the call back over to Jamie back for the closing remarks.

Okay. Thank you so much, operator. I think we are super excited about our growth potential at Fruta del Norte. It's been really interesting to see all of this exploration work come together and to have that supported by such strong operations this year as we mentioned, was remarkable in terms of record financial and operational performance.

Our dividend continues to be strong with a clean balance sheet. I think the future remains bright at Fruta del Norte, and we look forward to delivering on our 2026 objectives over the year.

Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may now disconnect your lines.

Good morning, ladies and gentlemen, and welcome to Lundin Gold's Q3 2025 Financial Results Call. [Operator Instructions] This call is being recorded on Friday, November 7, 2025. I would now like to turn the conference over to Ron Hochstein. Please go ahead.

Thank you, Natasha, and good morning, everyone. Thank you all for joining us today. I'm joined by Jamie Beck, Lundin Gold's new President and CEO; Terry Smith, Chief Operating Officer; and Chester See, our Chief Financial Officer. We're going to take you through our results for the third quarter of 2025.

Please note Lundin Gold's disclaimers on this slide. This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward-looking information and statements section of our press release. Lundin Gold is a U.S. dollar reporting entity, and all amounts in this presentation refer to U.S. dollars, unless otherwise indicated. As many of you know, I've resigned as President and CEO of Lundin Gold yesterday to pursue another opportunity within the Lundin Group. It is my honor to participate in this conference call and discuss Lundin Gold's third quarter results.

It is also my privilege to formally introduce you to Jamie Beck. Jamie, a long-standing member of the Lundin Group of Companies, and most recently, CEO of Vivo is as of today, the new President and CEO of Lundin Gold. I have worked with Jamie for many years, including working together on the due diligence to purchase Fruta del Norte. I can't think of a more capable person to build on the legacy that began with the vision of Lukas Lundin back in 2014.

Thank you, Ron, for that generous introduction, but more notably for your decade of visionary leadership. It is my honor and privilege to formally step into the role of President and CEO of Lundin Gold today. I'm incredibly excited to take the helm at this pivotal moment. Ron and the team have built a world-class operation, and we are now entering a major growth phase driven by both continued operational excellence and exploration success. We will maintain the relentless focus on maximizing value at Fruta del Norte for optimization and efficiency built on a strong foundation of responsible mining. .

We will also aggressively advance our high-potential exploration pipeline, ensuring we realize the immense growth potential within this highly prospective district. We also remain unwavering in our commitment to returning capital to shareholders through our robust dividend policy and commitment of creating shared value in Ecuador. I look forward to working closely with our team and connecting with all of you, our investors and partners in the coming months.

Now I'll turn the call back to Ron to continue with the quarterly results.

Thanks, Jamie. This was another excellent quarter for Lundin Gold. We produced over 122,000 ounces of gold and sold approximately 125,000 ounces. Average grade of ore mill was 8.9 grams per tonne with an average recovery of 88.2%. Our mining and milling throughput both hit records and with our average mill throughput achieving 5,264 tonnes per day. With this production performance to date, we are reconfirming our revised guidance of 490,000 to 525,000 ounces. Record gold prices continue to drive our financial results, but they also have an impact on our costs. Royalties and statutory employee profit sharing are impacted by the gold price and are included in our cash operating cost and all-in sustaining costs.

Our original guidance was based on an average gold price of $2,500 per ounce with our year-to-date realized price of $3,400, this translates to an approximate $90 per ounce increase in costs. a direct reflection of higher gold values. Despite these pressures, our cost performance remains strong with cash operating cost per ounce of $861 and all-in sustaining cost of $1,036 per ounce sold. This combined with an average realized gold price of $3,600 resulted in an ASIC margin of 71%.

Supported by another quarter of strong operations and record gold prices, we generated $216 million in cash flow from operations and $191 million in free cash flow. This robust free cash flow enabled our Board to declare a total dividend of $0.80 per share, approximately $193 million, consisting of our fixed dividend of $0.30 and a variable dividend of $0.50 per share. We increased the variable component this quarter to reflect 100% of normalized free cash flow from the policies minimum of 50%. Chester will provide more detail on this shortly.

On the exploration front, we've had another very active quarter. We recently released results on our copper gold porphyry systems at Trancaloma, Sandia and Castillo. And we continue to see this quarter emerge and this mineralized district continue to impress. Based on these recent results, we have further expanded the 2025 exploration program from an original 80,000 meters to a minimum of 120,000 meters. Our conversion drilling in FDNS is wrapping up for the year. Expansionary drilling continues, and our exploration drilling at FDN East also continues. We will be providing the results of these programs in the next couple of weeks. Our financial performance continues to improve. Compared to 2024, revenue was up 38% to $447 million. Net income hit a record high of $208 million, up 53%. Earnings per share also achieved a record high of $0.86, up 51% and free cash flow was up 5%. Our ASIC margin per ounce increased by 49% to $2,598 in Q3, reflecting our enhanced profitability.

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

Thanks, Ron, and good morning all. Starting with safety. In Q3, we had a few first days and medical incidents that I would characterize as low potential for serious injury, and we continue to have a very low total recordable incident rate which is great. However, looking at some of our leading indicators, we did see an uptick in incidents that had serious potential, and we took the time to investigate these. We found some areas to improve, including some gaps in our training and procedures, a need to get better at recognizing hazards and behaviors like rushing or improvising work that contributed to these events, working on leading indicators and improving as a result of where we want to be with our safety program, thanks to the team for their continued passion and commitment for safe production.

Moving to our production performance. I'm pleased to report that we had another strong quarter, achieving both record mining and milling rates. Mill throughput averaged 5,264 tonnes per day showing consistent increases every quarter this year through successful debottlenecking of the mill. Mill recovery was slightly lower than the last quarter as we processed oxidized ore, which impacted flotation recoveries. As we look ahead to the last quarter of the year, I'd like to point out that we anticipate slightly better grades than Q3 but lower relative to the first half of the year per our current mine plan. Recovery is expected to be about the same as Q3. We also expect to see continued increases in mill throughput as we optimize the mine and mill to work towards our goal of averaging 5,500 tonnes per day in 2026.

Finally, although we've already completed a couple of key projects this year, like a new batch plant, camp upgrades and an expansion to our diesel power generation system. You should expect to see our sustaining capital expenditures increase in the last quarter. This will be driven by the ongoing ramp-up of our fifth tailings dam raise, significant upgrades to our water treatment plant mining equipment and other plan site infrastructure improvement projects.

Before turning the call over to Chester, I wanted to highlight our progress on FDNS. In mid-2023, we made the decision to invest in 2 levels of underground development to support exploration set of FDN. Then the exploration team discovered FDNS back in Q2 of 2024 and subsequently announced a maiden inferred resource of over 2 million ounces earlier this year. We've been busy on the engineering front with Geotech, mine planning and metallurgy, while the drills continued turning on infill drilling through the year. We are on target to establish an initial reserve at FDNS in Q1 next year. This is remarkable progress and a testament to what our team can deliver. I'm looking forward to discussing this further next year once we complete our work.

With that, I'd like to now turn the call over to Chester to discuss our financial results.

Thanks, Terry, and good morning, everyone. For the third quarter of 2025, Lundin Gold achieved revenues of $447 million from the sale of approximately 125,000 ounces of gold at an average realized gold price of $3,634 per ounce. This average realized price includes $3,446 per ounce of gross price received and a favorable impact of $188 per ounce mark-to-market on provisionally priced sales. Our income from mining operations was $305 million, a significant increase from the same period last year, primarily driven by the higher gold price. This strong performance translated to earnings of $208 million or $0.86 per share and EBITDA of $312 million. The continued strengthening of gold prices supported this quarter's cash generation.

We generated $216 million in net cash from operating activities and $191 million in free cash flow or $0.79 per share during the quarter compared to $181 million or $0.76 per share in the third quarter of 2024. While free cash flow was up 5%, it's important to note that in addition to monthly corporate income tax installment payments, the company remitted $50.6 million to the government of Ecuador as a partial payment against its annual income taxes due in April 2026. This partial payment was completed voluntarily as a tax-efficient method to repatriate capital to fund dividends and to support the government of Ecuador. Excluding the impact of this partial payments, which will improve our free cash flow next year, our underlying cash flow was exceptionally strong relative to last year. We ended the quarter with a very strong cash position, $494 million, up from $349 million at the beginning of the year. We generated $665 million from operating activities, paid out $471 million in dividends and reinvested $67 million. With the continued positive outlook on gold prices, combined with our production and cost guidance, the free cash flow outlook for the up continues to look positive.

Now turning to our capital allocation strategy and dividend policy. I am very pleased to announce another strong dividend for our shareholders. Following another quarter of strong free cash flow generation, our Board of Directors has declared a quarterly dividend totaling $0.80 per share comprised of our regular fixed dividend of $0.30 and a variable dividend of $0.50 per share. We exercised the flexibility in our dividend policy by setting the variable dividend at 100% of our normalized free cash flow remaining after payment of fixed dividends this quarter, which is well above the minimum policy threshold of 50%. This distribution totaling approximately $193 million is a direct reflection of our Q3 performance and strong future outlook.

To calculate this normalized free cash flow, we made an additional adjustment this quarter. The early tax payment of $51 million made in Q3 has been spread equally across the last half of the year, subscribing to $25.3 million in each of Q3 and Q4. This robust payout reflects our commitment to return significant value to our shareholders, while maintaining the flexibility to invest strategically in our long-term growth initiatives. For a more detailed discussion of our dividend and financial results, I encourage you to read our MD&A.

Now I'd like to turn the call back over to Ron.

Thank you, Chester. I would like to point out a significant milestone that we achieved in the company's history. With this latest dividend announcement, we will have returned approximately $950 million in total dividends a sum that exceeds the $861 million in equity raised to acquire and develop Fruta del Norte. In other words, the project has officially paid back the entire original equity investment.

Moving forward, every dollar of cash flow generated by Fruta del Norte, is essentially a net return on capital for our shareholders. This is a testament to the world-class quality of the asset. The team's focus on operational excellence, and focus on maximizing long-term value and continuing to turn -- continuing to return capital to shareholders.

Now over to Jamie to speak to exploration.

Thanks, Ron. On the exploration front, we're excited to share some significant updates on our exploration and growth initiatives. Our top priority remains FDNS and our work here is twofold: growing the resource and increasing our confidence in the inferred resource. Our 2025 conversion drilling program has recently completed, and we are awaiting final assays while exploratory drilling continues. The discovery and rapid delineation of a multimillion ounce gold deposit is a remarkable technical achievement for our exploration and operating teams and demonstrates the high value potential neighboring FDN and importantly, we continue to see significant upside as the deposit remains open and is showing strong signs for further growth. Exploratory drilling on FDN East is also ongoing and is currently exploring the mineralization continuity in the central portion of this target. .

Similar to FDNS, it is in close proximity to Fruta del Norte, approximately 100 meters away and has high potential to add significant value to current operations as we continue to advance our understanding of the target. We will be reporting on FDNS and FDN East drilling programs in the next few weeks. Earlier this week, we issued a release highlighting our emerging copper gold porphyries. The results we reported confirmed the large scale potential of this system with our best grades to date, all found in very close proximity to the main FDN deposit. We are now actively exploring 3 compelling porphyries, Sandia, Trancaloma and Castillo. All 3 show immense potential and critically they all remain open in all directions with the potential for additional porphyry deposits to be found.

At India, our step-out drilling has confirmed a continuously mineralized zone that extends for nearly 1,000 meters along strike is 500 meters wide and reaches 800 meters at depth. This has revealed a large mineral envelope that remains wide open. Significantly, we reported the highest grade times with Intercept yet in our porphyria program, approximately 607 meters, a 0.59% copper equivalent starting just 2 years below the surface.

Moving to Trancaloma. Since its discovery earlier this year, drilling has defined a wide and continuous copper gold mineralized zone starting right at surface. This zone extends for 1,000 meters along strike, is 650 meters wide and goes down to 1,000 meters at depth. Like India, A very large mineral envelope has emerged and remains open in all directions with special note to the 2 kilometers between Sandia and Trancaloma within that 5-kilometer corridor that have yet to be drilled. Finally, at Castillo, we made a shallow high-grade copper gold discovery, just 2 kilometers south of FDN with the intercept being approximately 224 meters at a copper equivalent grade of 0.71%. The mineralization is covered by only about 100 meters of overlying conglomerates, which is very favorable. This initial decovery strongly suggests the potential for additional porphyry centers to be found in the area.

Back to you, Ron.

Thanks, Jamie. In summary, as we revisit our 2025 objectives, the message is clear. We are delivering our core value of safety and environmental stewardship remains nonnegotiable supported by 0.20 total recordable injury rate year-to-date, which we will constantly strive to improve. Operationally, the plant optimization has successfully delivered a record Q3 throughput of 5,264 tonnes per day, giving us high confidence in achieving the 5,500 tonne per day average in 2026. This success supports our confirmed production guidance of 490,000 to 525,000 ounces. While unit costs are expected at the high end, this is a direct result of the impact of higher gold prices on our royalty structure.

Our largest ever exploration program is firing on all cylinders with over 100,000 meters drilled to date. At FDNS, conversion drilling is complete, and we eagerly await the final assays which will feed into our initial reserve estimate anticipated early next year. Furthermore, the emerging potential at FDN East and the increasingly done porphyry corridor, including Trancaloma, Sandia and Castillo, is exceptionally encouraging for future growth. Finally, we have significantly surpassed our initial capital return target, having returned and announced approximately $663 million to our shareholders year-to-date. In closing, we are executing on our production targets, demonstrating excellence in exploration and delivering substantial value to our shareholders. We look forward to carrying out this robust momentum throughout the final quarter and in 2026 and beyond.

Before we move to questions, please allow me a final personal reflection. This is my last quarterly conference call. And after 10 years, it has been the highest honor and privilege of my career to be part of this exceptional story. The success we've achieved is truly a collective effort, and I want to offer my heartfelt thanks to the many people who made it possible. To our investors and the analyst community, thank you for your commitment, your tough questions and your belief in our vision. Most importantly, to our employees and contractors. You're dedicated, ingenuity and passion for safety are the foundation of everything we do and to the people of Ecuador. Thank you for your partnership and for allowing us to operate your beautiful country. Your trust is something we value above all else. Thank you all for joining us and joining me over the last 10 years on these calls.

With that, we will now open the call for questions. Over to you, Natasha.

[Operator Instructions] Your first question comes from Fahad Tariq with Jefferies.

On the gold recoveries, there was a comment made on the third quarter prerelease that there was maybe a room for improvement on gold recovery. And I think on this call, unless I misunderstood, I think the outlook was maybe recoveries will be more or less flat in the fourth quarter. Just trying to get a better sense of whether recoveries can go even higher from these levels.

Yes. Thanks, Fahad. As I mentioned in the script, we saw some oxidized ore in the third quarter, and that impacts our flotation recoveries and the efficiency of the circuit. This is all part of a real geometallurgy program where we're trying to understand where that material sits and how we can treat it differently in our plants, and we're making good progress on that. I won't bore you with all the technical details, but we feel pretty strongly that moving forward, we'll have better recoveries. We just can't foresee those arriving as early as Q4, but we will work hard on maximizing recoveries every day, of course.

Okay. That's clear. And then, Jamie, maybe just -- I know it's day 1 for you, but just thinking about the strategy for the company, just thoughts on what your area of focus will be, whether it's proving out the porphyry potential external M&A? Any thoughts there would be really helpful.

Yes. I think this company is incredibly well positioned to be able to advance on a number of initiatives at the same time. First and foremost is I think maintaining operational excellence and the incredible work that we're doing at FDN and in country, and delivering that value back to shareholders, clearly excited about the work that's happening with exploration. And you can see that in our continued investments, actual increased investments. I think we talked about almost 50% more meters planned for this year than what we're originally budgeted for. I think on the M&A front, no real change to our strategy. We continue to be disciplined and patient, but we'll certainly be opportunistic should good opportunity present themselves.

[Operator Instructions] Next question comes from Don DeMarco with National Bank.

Yes. And first of all, Ron, thank you for the kind words, and welcome to Jamie. So yes, I see it's another quarter where the high percentage of our free cash is paid out as a dividend. And as Chester mentioned, in Q3, the company elected to increase that variable portion to 100%. So what were the thoughts behind this increase? And is it viewed as a one-off? Or might this be a new norm of the quarter and the outlook remains strong?

Don, it's Jamie here. I think we'll evaluate this on a quarter-by-quarter basis. and always be willing to adjust that variable portion of the dividend up or down as we see needed. I think specifically this quarter, some of that is driven by sort of where our cash balance is and keeping that at a comfortable level. for us and also being able to return all of that free cash flow, the quarter back to shareholders. So I think you can see that similar strategy moving forward. Obviously, growth initiatives or capital needs that perhaps change in the future could adjust our Board of Directors and management's thinking on how we would view that variable dividend going forward. But certainly, for the short term, I see that as being focus on continuing to return capital to shareholders.

Okay. Yes, because, I mean, as I see it, there's somewhat competing objectives of building up your balance sheet to fund your growth strategy, you've got these great porphyry targets, that may Blue Carson development CapEx several years out and then returning the capital to shareholders. So is there a certain kind of cash balance target that you might be thinking about over a certain period of time in order to have that treasury in order to fund growth?

Yes. I don't think there's a magic number, Don. I think we continue to evaluate it, as I say, on a quarter-by-quarter basis as the porphyry exploration advances? And should we start thinking about putting some engineering studies around that and understanding what maybe capital needs, then of course, that would be a catalyst for us to think about how that cash balance potentially funds that future growth. I'd also say that the fact that the asset is completely unencumbered now allows us to look at what kind of capital strategy might be used for any future growth activities as well. So I think we're in a pretty incredible position to have lots of various options available to us should the need for additional funding arise.

Okay. Great. And maybe just as a final question, then I'll pivot over to the porphyry targets. Both FND and Trancaloma are showing these large marine volumes. It's still early, but what's drilling showing you at this point in terms of the continuity mineralization, maybe potential development approaches. And what might the timing be of a first resource estimate?

Yes. I think too early at this point in time to sort of put a pin in calendars around resource estimates. What we can say is that we are pretty encouraged by what we're seeing for potential continuity here. Again, I think I caution that it's still being early days. San Dio, we've got 2 holes and do it effectively. And what we see is evidence on surface from soil sampling, evidenced from the geochemistry, evidence that we're seeing through the drilling that there's really high potential for this to be quite a significant continuously mineralized envelope. But stay tuned, I think for results from the drill bit, that's the only way we'll truly find out what's going on.

[Operator Instructions] There are no further questions at this time. So I will now turn the call over to Ron Hochstein for closing remarks. Please continue. .

Thanks Natasha. And thanks again. As I said earlier, thank you all the analysts and investors for your continued support. And as I mentioned in the press release, it was very bright companies in very good hands, and I'll be an active spectator going forward. Thanks, everybody, and have a great weekend. .

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

Good morning, ladies and gentlemen, and welcome to Lundin Gold's Second Quarter 2025 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference call over to Ron Hochstein, President and CEO. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you all for joining us today. I'm joined by Terry Smith, Chief Operating Officer; and Chester See, our Chief Financial Officer. We're going to take you through our results for the second quarter of 2025.

Please note Lundin Gold's disclaimers on this slide. This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward-looking information and statements section of our press release. Lundin Gold is a U.S. dollar reporting entity, and all amounts in this presentation refer to U.S. dollars unless otherwise indicated.

This was another excellent quarter for Lundin Gold. We produced over 139,000 ounces of gold and sold more than 136,000 ounces. Our cost performance remains strong with cash operating cost per ounce of $756 and all-in sustaining cost of $927 per ounce sold. This, combined with an average realized gold price of $3,361 resulted in an impressive all-in sustaining cost margin of 72%. With the strong operating performance in the first half of the year, we are updating our 2025 production guidance by raising the lower end of our range from 475,000 to 490,000 ounces while maintaining our upper end at 525,000 ounces.

Record gold prices have driven exceptional financial results, but they also have an impact on our costs. Royalties and statutory employee profit sharing are impacted by the gold price and are included in our cash operating cost and all-in sustaining costs. Our original guidance was based on an average gold price of $2,500 per ounce. For every $100 increase in the gold price, we anticipate a roughly $10 increase in our costs. With our average realized price of $3,231 per ounce in the first half of the year, this translates to an approximate $70 per ounce increase in costs.

Despite this pressure, our costs -- our focus on operational excellence allows us to reaffirm our guidance, though we now expect to be at the high end of our cost ranges, largely due to the current gold prices. Supported by another quarter of strong operations and record gold prices, we generated a record $255 million in cash flow from operations and $236 million in free cash flow. This robust free cash flow enables us to declare a total dividend of $0.79 per share, consisting of our fixed dividend of $0.30 and a variable dividend of $0.49 per share. Chester will provide more detail on this shortly.

On the exploration front, we've had a very active quarter. We recently released 2 sets of exciting results from our FDNS, FDN East and the copper-gold porphyry systems at Trancaloma and the newly discovered Sandia. Our conversion drilling at FDNS is progressing well, and our engineering studies are on track to integrate it into our long-term mine plan as part of our reserves and resource update early next year. Turning to Slide 5. You can see the power of both the strong gold price and our operational excellence in our year-over-year performance. In Q2, we saw significant growth across all key financial metrics. Compared to the same quarter in 2024, revenue surged 50% to $453 million. Net income hit a record high of $197 million, up 65%. Earnings per share doubled, increasing by 100% to $0.82 per share, and free cash flow grew by a substantial 110% to $236 million. While we certainly benefited from a rising gold price, we've also controlled our costs through continuous optimization and productivity improvements. This is a testament to our team's commitment to innovation and efficiency. Our all-in sustaining cost margin per ounce increased by 62% to $2,434 in Q2, reflecting our enhanced profitability.

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

Thanks, Ron, and good morning all. Turning to safety. I'm pleased with our Q2 and year-to-date performance. While it's nice to see a quarter with no recordable incidents and our overall incident rate dropped compared to last year, our focus at FDN hasn't changed.

From promoting hazard recognition and safe behaviors with visible leadership in the field to fostering open 2-way communication, helping to improve the way we work are making a real difference. I'm always inspired by the commitment of every single person on our team. This commitment will help us avoid complacency and continue to operate at the highest standard. Moving to operations. I'm pleased to report that we've had another strong quarter, delivering on our key strategic objectives. Last quarter, we discussed the successful completion of our plant expansion project. This quarter, we realized the benefits of that investment, achieving record throughput and recovery rates, meeting our operational targets for the expanded plant. The team has done an outstanding job of improving the new infrastructure, and it's already showing up in our results.

As Ron mentioned earlier, this strong performance, combined with our positive first quarter gives us confidence to tighten our 2025 production guidance. We are now raising the bottom end of our guidance range from 475,000 to a new range of 490,000 to 525,000 ounces. As we look ahead to the second half of the year, we expect a few things. As per our mine plan, we expect a moderation in the mill head grade. However, we also expect to see continued increases in mill throughput as we optimize the mine and mill to work toward our medium-term goal of averaging 5,500 tonnes per day in 2026.

Finally, you should expect to see our sustaining capital expenditures increase in the second half of the year. This will be driven by the ongoing ramp-up of our fifth tailings dam raise and other planned site infrastructure improvement projects. These are critical investments that will support our long-term production goals and operational stability.

With that, I'd like to turn the call over to Chester to discuss our financial results.

Thanks, Terry, and good morning, everyone. For the second quarter of 2025, Lundin Gold achieved record revenues of $453 million from the sale of approximately 137,000 ounces of gold at an average realized gold price of $3,361 per ounce. This average realized price includes $3,276 per ounce of gross price received and a favorable impact of $85 per ounce mark-to-market on provisionally priced sales.

Our income from mining operations was $314 million, a significant increase from the same period last year, primarily driven by the higher gold price. This strong performance translated to adjusted earnings of $197 million or $0.82 per share and EBITDA of $319 million. Record free cash flow was generated in the second quarter of 2025 from strong gold sales and a strong gold price. We generated $255 million in net cash from operating activities and $236 million in free cash flow or $0.98 per share during the quarter compared to $112 million or $0.47 per share in the second quarter of 2024. We ended the quarter with a very strong cash position of $493 million, up from $349 million at the beginning of the year. We generated $449 million from operating activities paid out $280 million in dividends and reinvested $43 million back into the business in the first half of 2025.

With the continued positive outlook on gold prices, combined with our production and cost guidance, I'm very optimistic that we will continue to generate significant free cash flow. Our financial performance year-to-date has been exceptional, driven by our operational excellence as well as by the significant increase in the price of gold. However, it's important to note that this same increase to the gold price has also created upward pressure on our operating costs. Specifically, higher gold prices directly translate to increased expenses for both royalties and employee profit sharing. These costs directly impact our cash operating costs and our all-in sustaining costs. To put this into perspective, we've seen an impact of approximately $70 per ounce to our cash costs and all-in sustaining costs due to the higher gold price when compared to the $2,500 gold price that we use for our 2025 guidance.

In general, for every $100 per ounce increase in the gold price, we can expect our cost to rise by about $10 per ounce. Despite these pressures, our focus remains on operational efficiency. We're continuing to drive cost reduction and improve mill throughput across our operations. As a result of these ongoing efforts, we expect to remain within our cash operating costs and AISC guidance for the year, albeit at the upper end of our guidance ranges. Now turning to our capital allocation strategy and dividend policy. I'm very pleased to announce another strong dividend for our shareholders. Following a record quarter of free cash flow, our Board of Directors has declared a quarterly dividend totaling $0.79 per share, comprised of our regular fixed dividend of $0.30 and a substantial variable dividend of $0.49 per share.

This distribution totaling approximately $190 million is a direct reflection of our record Q2 performance. The variable dividend is based on our normalized free cash flow, which this quarter includes an add-back of $95 million in annual tax and profit sharing paid in Q2. This adjustment helps to smooth out these large onetime payments and minimizes significant swings in our quarterly dividend. This robust payout reflects our commitment to returning significant value to our shareholders while maintaining the flexibility to invest strategically in our long-term growth initiatives. For a more detailed discussion of our dividend and financial results, I encourage you to read our MD&A.

Now I'd like to turn the call back over to Ron.

Thank you, Chester. We're excited to share some significant updates on our exploration and growth initiatives. Over the past week, we've issued 2 releases detailing our progress, and I strongly encourage you to read them for the full picture. Our top priority remains FDNS, and our work here is twofold, growing the resource and increasing our confidence in the inferred resource. Our conversion drilling is yielding some of our highest grade results yet, and we've also discovered a new mineralized vein just outside the existing inferred resource.

This progress, combined with significant advancements in our engineering studies, keeps us on track to integration a portion of the FDNS mineralization into FDN's long-term mine plan as part of our annual resource update early next year. Additionally, recent drill results from FDN East could continue to highlight its excellent exploration potential, especially given its proximity to our existing underground development. Beyond our current operations, we're very excited about a new development, the emergence of a copper-gold porphyry corridor right next to FDN.

Follow-up drilling at Trancaloma has successfully confirmed the continuity of the at surface copper gold mineralization with results pointing to significant expansion potential. This new geological understanding is further strengthened by the discovery of a new copper-gold porphyry system at Sandia. This system also hosts mineralization that begins with surface and helps to define an emerging and highly prospective corridor that we've now delineated thus far as 5 kilometers long and directly adjacent to FDN. Turning to Slide 18. With respect to our 2025 objectives we set at the beginning of the year, we are well on track to meet or exceed them. Our top priority remains the health, safety of our people and the environmental performance of our operations. We continue to embed best practices across the organization.

Our total recordable injury rate for H1 2025 was 0.10, and we are continuing to be diligent. We've seen the benefits of our plant expansion with increased throughput and recovery. The focus for the second half of the year will be to continue optimizing recoveries and ramping up throughput to an average of 5,500 tonnes per day in 2026. Our strong performance led us to increase the low end of our 2025 production guidance to 490,000 to 525,000 ounces. We're also confirming our unit cost guidance, but we expect to be at the high end of the range due to the impact of our gold prices on royalties and profit sharing. Our largest ever exploration program is off to a great start with 48,000 meters completed at a minimum of 108,000 meters. At FDNS, we're making excellent progress on conversion drilling, and our engineering studies are moving toward initial reserve as part of our annual statement early next year.

With the discovery of Trancaloma and now Sandia, we're looking at better understanding the geological environment between Bonza Sur and the expanding porphyry corridor. Sustainability is integral to our success. We are actively working on a new 5-year sustainability strategy aligned with global best practices. Finally, we are committed to returning value to our shareholders. Our initial target was to return $300 million via dividends. I'm pleased to say we've already exceeded that, having paid out and announced approximately $470 million year-to-date.

In conclusion, we are delivering on our operational targets, advancing our key projects and enhancing shareholder returns. We are confident in our ability to continue this positive momentum throughout the second half of the year and beyond. Thank you all for joining us and for your continued support. And with that, I will now open the call to questions.

[Operator Instructions]

Your first question is from Fahad Tariq from Jefferies.

At the end, you mentioned you expect throughput to increase in the second half, but how should we be thinking about grades relative to the first half of the year?

Terry, do you want to take that one?

Sure, Ron. Yes, we're looking at grades between 9 and 10 grams for the balance of the year, closer to 9, I would say.

Okay. Great. And then looking at the exploration, I didn't see much commentary in the MD&A or in the presentation about Bonza Sur. Maybe -- and I think you mentioned something just a few minutes ago. Maybe just mention or remind us what's kind of the focus there? And it sounds like the initial resource, it's not going to be announced anytime soon there as you kind of do drilling elsewhere.

That's a really good question. And yes, our focus has shifted there. With Bonza Sur, we see this now as part of a much -- potentially much larger complex. So it really doesn't make a lot of sense for us based on what we're seeing on the drilling right now to be putting out just a potentially small resource of a much larger area with Bonza Sur. Bonza Sur helped us to get to where we are today. It helped lead us towards looking at Trancaloma in that whole corridor. But I think in some respects, it's a much larger system now. So it just doesn't make a lot of sense for us to be pushing that out.

And your next question is from Don DeMarco from National Bank Financial.

Congratulations on the strong H1 actually. So I see that you opportunistically relined the mill and you completed the commissioning of Jameson cell. So should we expect an uptick in recoveries and minimal downtime in processing in H2?

Yes, we did take advantage of when we commissioned the Jameson cells to shift a SAG mill relining and the Ball mill relining to February. We will have another relining, I think it's November, Terry.

Correct.

Yes. So we will have a little bit of downtime in November for that reline. But yes, we don't anticipate any significant downtime, Don, for the second half of the year other than that one reline.

Okay. I think the Q2 recoveries were maybe close to 91%. With the completed commissioning of the Jameson cell, do you think you will edge above that in H2? Or is that a good number to go forward with?

I think that's a good number to go forward with. We're still -- and I'll let Terry comment as well. We still see some optimizations that we need to do. There's some instrumentation we want to add to further work on. And with the Jameson cells now, we've kind of seen a shift, Don, to a little bit of a bottleneck in our concentrate dewatering. We're producing more [ con ]. And so we need to work on that.

Anything else, Terry, that I'm missing?

5

No, you've got it, Ron. Yes, recoveries in that 90% range are good numbers to use, Don. And -- but I agree with Ron, there's still some upside in how we can debottleneck part of the circuit there and achieve better recoveries. And just to clarify what I was -- when I was speaking about grades earlier to Fahad I would say our grades will be sub-9. So that's what we expect for the second half of the year. I was looking at the full year grades earlier.

Okay. So you mentioned that with some of the mill optimization opportunities you're looking to get throughput up to 5,500 tonnes per day in 2026. What is the -- what are some of the things that you're doing to get to that level? And is there scope to get to 6,000 tonnes per day with the existing infrastructure beyond 2026?

Yes. Don, you know our team, we continue to push. Our goal originally was to be at 5,500 for next year, but we're seeing opportunities to continue to push ourselves to get to be at 5,500 at January 1 or maybe even a bit sooner. So we're going to continue to do it. A lot of it is tweaking. Just we're finding -- as we now have the Jameson cells in and the other changes we did as part of the $40 million expansion, we're seeing -- maybe start to find some other battery limits. So we -- but that's nothing significant pump speeds, variety of different things that we're working on.

But to your point, the team, we've already engaged some engineering companies to start looking at what is the next level. Is it 6? Is it a little bit higher than that? That's what we're -- we've already are starting to look ahead and teams were on site a few weeks ago and looking at all things and what needs to be done to maybe take us above that. Then also then we'd have to look at where are we running any constraints around our permitting and that sort of thing. But Don as probably you would expect, our team is already starting to look at what's next.

Absolutely. Okay. And then just as a final question, it's on your exploration updates. So certainly, as you mentioned, I appreciate the priority of FDNS and FDE and so on these offer near-term returns. But this porphyry corridor looks really interesting in terms of the blue sky upside potential. And so I was just wondering what your approach is to explore this. Like do you plan to do a detailed definition, let's say, pick one porphyry Trancaloma and expedite toward preparation of the PEA or continue with just high-level porphyry discovery beyond Sandia, maybe a multiyear program just to understand the full regional potential.

I think it's more that -- we would be more -- what's happened is, first of all, the team started to realize that actually there were some big gaps even in our surface sampling, the geochem surface sampling in that, and we've completed all that in the past quarter, and we've highlighted a number of new anomalies between Sandia and Trancaloma. I wouldn't say that it's necessarily going to shift to a regional Don. It's going to be more that we're going to really start focusing on this corridor, Sandia to Trancaloma and even from end of June to now, we're up to 17 rigs, but we've shifted some of our surface rigs from other targets to focus on this corridor.

We also had a bit of -- there are some results in that were delayed because in Q2, we had a lot of rain, a lot as you may have seen in some of the new stories that came out of Ecuador with the flooding in that. And as a result, a lot of that helicopter supported, and we couldn't get core to -- from the pads to the core shed to be processed. So we're a bit behind on results. So just -- we are really starting to focus on it. And some rigs have been moved to it.

Your next question is from Martin Pradier from Veritas Investment Research.

Great results. The first question I have is, did you have months or days of 93%, 94%, 95% recovery or that never happen?

Terry, do you want to take that?

Martin, yes, we see recoveries pretty stable on a day-to-day basis. I would say the range is in the 88% to 93%, 94% and obviously, averaging out what we did around 91% for the quarter.

Okay. So there might be like if you do more, you might get more consistent in 92% or 93% eventually.

Well, we're -- like Ron was describing with throughput, we're never done trying to improve recovery. I do think that there is some further optimization and there's some technology aspects and even longer term, there's some things we're working on from a recovery perspective. So -- but for now, in the medium term, where we are is about what we're going to be able to do.

Now when I look at 2026, you're going to be at 5,500 tonnes per day, perhaps since the beginning. Your recovery are a little bit higher than before. Is there a possibility that you'll be able to push production a little bit higher than your original guidance?

Go ahead, Terry.

Yes. We brought up the bottom end of our guidance. And I think that's a good way to think about the year. We've already guided on some grades, recoveries. Ron is talking about our throughput pushing towards 5,500. So I think you've got all the information you need to sort of forecast where we're going to land.

I'm saying 2026, not 2025.

I'm sorry, 2026. We're sticking with our guidance that we -- our 3-year guidance that we put out earlier this year, where we'll get into the year next year at 5,500 tonnes per day, and that's a good number to use until we have a little bit more information. As Ron was describing, we're just getting into looking ahead as to what we can push this plant beyond. And so we don't have any timing of when we would be able to achieve higher throughputs than 5,500 at the moment.

Great. And in terms of the -- trying to figure out the exploration of these big porphyries that you're finding, how long will it take you? Or do you have an estimate it would take you 2, 3 years to figure this out or less? I mean...

That's a great question, Martin. That's some of the things we're going through ourselves, and that kind of came up at our Board meeting yesterday. And it's very early days. We've got, I think, 4 or 5 holes that we've reported in Trancaloma and 1 in Sandia. And as I said, we just kind of finished a new surface geochem program, which has identified more anomalies to be tested. So it's -- I think that's something -- I would see that as part of our -- what we talked about when we come out with our 2026 budget is obviously our exploration, you'll see where we're focused on and maybe have a little bit more visibility as what we see as a longer-term plan for that district.

Your next question is from Jeremy Hoy from Canaccord.

Thinking about Trancaloma and the porphyry corridor, you've just said it is early days, but it certainly seems to be quite the exciting developments. You guys have also had an excellent relationship with the community. Do you think that the nearby communities would be supportive of an expanded footprint of industrial works on the property if it were to get to that point with resource and mine plans?

Jeremy, yes, that's one of the things we've had some -- a lot of discussions internally with our teams and quite frankly, we see the timing of us with these opportunities, this porphyry district, the timing couldn't be better with regards to what we see as the potential in Ecuador and the push of the new government to really focus on mining. And we do have strong community relationships, and we've been quite upfront, even started with Bonza Sur and others about talking about that we may be looking at open pit potential. And to date, we've seen a lot of support from the community because again, they're seeing longer generational type opportunities. And so I think we would -- based on what we know today, we would have good support to continue to develop and expand Fruta del Norte and the potential there.

And your next question is from Nakagawa from CIBC.

I'm asking on behalf of my analyst, Anita Soni. So for Trancaloma and Sandia, I was wondering if you could provide any detail conceptually on what size of plant you're envisioning and if it will be separate from a Bonza Sur plant.

As we said earlier, it's really early days. We couldn't even envision as to what size of plant that it would be right now. We've gone from -- just in the past quarter from looking at Trancaloma now to having this anomaly Sandia, which is 3.5, 4 -- maybe 5 kilometers from the southern edge of Trancaloma. So this thing is changing rapidly in terms of what potential this could be. Yes, it would definitely -- and now also to Bonza Sur, we're looking at as possibly part of this overall complex. So it's really -- right now, I would say a good way of looking at this, it's really a blank slide for us.

It's such early days, but it's something that we too are very excited about, and it's something we spent some time on dreaming what this could be and what now focus on the drills. Andre reminded our Board yesterday, it wasn't that long ago that we had 6 rigs and now we're up to 17 rigs. And so we will be -- we can assure you and Anita and our shareholders that we will be focusing on this and trying to move this along and be able to answer some of these questions here in the not-too-distant future.

[Operator Instructions]

Your next question is from Martin Pradier from Veritas Investment Research.

Just one question. Have you considered doing like 2 companies, one -- like if the opportunity is there to do 2 companies, one gold company and another one more like a copper company? Because I'm thinking the investment and the kind of stuff that you need on the copper is much different. It's much bigger. And there might be different investor groups interested in gold and copper.

Yes, Martin, the answer is no. A, just within Ecuador, this is still all on the [ Los Lobos concession ]. So it's not like we really want to start having another company in our concession. And we already have a large copper company that's doing extremely well in Lundin Mining. So if investors want copper, we've got a company that's doing extremely well with a lot of growth in front of it to invest there. There's a lot of gold -- we're seeing high gold in these -- what we're seeing at Sandia and Trancaloma, which I think just contributes to our -- the gold story. So yes, we wouldn't consider that.

Thank you. There are no further questions at this time. Please proceed.

Thanks, Jamie. I just want to thank all of you for your continued coverage. And as always, we are always Chester, Terry, Brendan. We're always available for any questions you may have. And again, thank you to our shareholders for your continued support. Thanks very much.

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.