Trekor Metals Limited Common Shares

Ladies and gentlemen, thank you for standing by and welcome to the Ticicum Mine's 2025 second quarter earnings conference call. At this time, all participants are in a listen only mode. We will conduct a question and answer session later and instructions will be given at that time. As a reminder, this call is being recorded. With that, I will turn the call over to Mr. Brian Burko. Sir, you may begin.

Thank you, Janine. Welcome everyone and thank you for joining Ticico's second quarter 2025 conference call. The news release and regulatory filing announcing our financial and operational results was issued yesterday after market closed and is available on our website at Ticicomines.com and on CDAR+. On the call today is Ticico's President and CEO, Stuart MacDonald, Ticico's Chief Financial Officer, Bryce Hamming, and our COO, Richard Trombley. As usual, before we get into opening remarks by management, I would like to remind our listeners that our comments and answers to your questions will contain forward-looking information and this information by its nature is subject to risks and uncertainties. As such, actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, I encourage you to read the cautionary note that accompanies our second quarter MD&A and the related news release, as well as the risk factors particular to our company. These documents can be found on our website and also on CDAR+. I would also like to point out that we will use various non-GAAP measures during the call. You can find explanations and reconciliations regarding these measures in the related news release. And finally, all dollar amounts we will discuss today are in Canadian dollars and less otherwise specified. Following opening remarks, we'll open the phone lines to analysts and investors for questions. I will now turn the call over to Mr. Price for remarks.

Okay, thank you, Brian, and welcome everyone to our second quarter results conference call. I'll start with an update on our operations and projects and then pass it to Bryce for a closer look at our Q2 financials. It's been a busy few months for us and generally I think we're making good progress across our business with a few significant milestones achieved at our projects recently. It's also been an interesting time in the copper markets globally and the picture for US copper tariffs is now clearer. I'll come back to that topic in a minute, but I wanna start with a Gibraltar update. So as noted in our last quarter's earning release, our mining rates at Gibraltar were impacted earlier this year by challenging conditions in the upper benches of the connector pit. In the second quarter, mining advanced into better ground and mine tonnages increased dramatically to a total of 30 million tons for the quarter. That's 31% higher than Q1 and in fact, the best mining quarter in the last four years. As a result, we continue to expect a strong rebound in production in Q3 and then even better production in the fourth quarter continuing into 2026. In June and July, production was more than 35% higher than in April and May as we started to access this higher grade ore in the connector pit. Second quarter copper production was 20 million pounds, which was the same as the prior quarter and in line with plan. Copper grades were .20% and recoveries were 63%. We're through the worst of the low quality ore and steadily transitioning into better grades with less oxidation, which will also result in higher recoveries. MOLLE grades and recoveries are also expected to improve significantly in the second half. Total cash costs or C1 reported at 314 per pound in the second quarter will also decline in the second half as production levels rise. We reported copper cathode production at Gibraltar in the second quarter as well. This leaching operations commenced on one of the two leach pads and the Gibraltar SXEW plant was restarted in late May. After a quick round-up, the plant operated at steady state for most of June and July. Up until a couple of days ago when a transformer issue took the plant down. That issue has just been diagnosed yesterday afternoon and we expect six to eight weeks of downtime for that plant. It's a short-term issue with less than 1 million pounds of production impact. On the plus side, we've continued to see positive ore reconciliations in the connector pit to more oxide ore than expected. And we're now thinking that that SXEW plant could run for at least 15 years and possibly longer. Turning over to Florence now, as we highlighted with our recent construction update, the project continues to advance smoothly on schedule and with costs continuing to track in line with our previous guidance. Really happy with the work that's being done by our capital projects team and the key contractors on site. With the overall project completion over 90%, activities will soon be shifting to commissioning. Key systems such as the electrical substation, which was completed in June, and the ones that were completed last month are now starting to be released from the construction team and placed under the control of our growing operations team. All of the well field drilling that was planned for the construction phase is now complete and electrical and pumping equipment is being installed into the wells. The next key milestone will be the initial injection of solutions which we're targeting to achieve in September. And this would allow enough time to acidify the well field and produce first copper cathode before the end of the year. Through the first 18 months, construction CAPEX is tracking in line with updated guidance we issued last year. At the end of the quarter, 239 million US has been incurred, leaving only about 10% of the total capital outstanding. The team is now working on the detailed operating plans for the ramp up next year, which will require additional wells to be drilled to get us up to the design capacity for the plant of 85 million pounds per year. So all this to say, America's next new copper mine is advancing smoothly and nearing completion. We're not there yet, still a lot of work to be done and we're entering a critical phase here over the next few months to get to start up. Obviously, the recent copper tariff news has driven a lot of volatility in the COMEX copper price, with metal traders and other financial speculators trading into the COMEX market and then rapidly exiting as the COMEX premium disappeared with a tariff announcement last week. Despite all the headlines, the LME copper price, which is the global benchmark, has remained stable and strong. For the US copper market, the current administration is clearly incentivizing US-based manufacturing of finished copper products. This is a very positive development for Florence, which will soon become one of the few US-based suppliers of refined copper. The US will remain a net importer of cathode in the coming years and our Arizona-based operation will have a significant geographic advantage in delivering refined metal to the growing US manufacturing base. And just a reminder that at a copper price of 3.75 US per pound, that's the price used in our last technical report, Florence has an after-tax NPV of 930 million US. At today's price of around 4.40 US per pound, the NPV is closer to 1.2 to 1.3 billion. That's not yet reflected in Toseco's equity, but we're working hard to unlock that value over the next year. In the longer term, Toseco has other growth assets in our portfolio and we've had some significant developments on those projects in recent months, which I'll touch on now. The new prosperity agreement announced in June was a very important milestone for the company. And I think it came as a surprise to the market, even though we'd been making good progress towards an agreement over the previous year. The dialogue actually started about five years earlier, so it was certainly a lengthy process, and I want to recognize the commitment and perseverance of both the province of BC and the Chilcotin national government to complete that deal in June. The agreement allows all three parties to turn the page on a historical conflict and move forward in a constructive way. It ends years of litigation while providing certainty as to how the significant copper-gold deposit of new prosperity could be developed in the future. Toseco has received a $75 million cash payment from BC in exchange for a .5% equity interest in the project, which has been placed into a trust for the Chilcotin nation. The trust will only transfer this interest if the Chilcotin consent to pursue mineral development on the property. BC and the Chilcotin will now enter into a land use planning process, and so the door remains open to future mine development, but only with the consent of the nation. Toseco retains .5% ownership of the new prosperity mineral rights, and we can divest some or all of that interest at any time. I believe if we're patient, there will be a further opportunity down the road to realize significant value from this world-class asset. For our Yellowhead project, we recently announced the results of an updated technical study with significantly improved economics, as well as the formal commencement of the environmental assessment process for the project. The new technical report includes updated capex, operating costs, and long-term metal price assumptions, and describes a mine that would produce 178 million pounds of copper annually. Over a 25-year mine life had a cash cost of around $1.90 per pound average. At 425 copper, the project has an NPV of $2 billion Canadian dollars and an after-tax IRR of 21%. That's not bad for a project that we acquired for only $16 million just a few years ago. When you consider the production profile, the mine life, and the project economics, Yellowhead stacks up very well against all the other North American copper development projects. And we will continue to de-risk the project as it moves through the permitting process. In early July, the initial project description was accepted by the BC Environmental Assessment Office and the Impact Assessment Agency of Canada. The project is also advancing through the early stages of the CIMP First Nations assessment process. And we continue to have an active and ongoing dialogue with them. We've also held a number of well-attended open houses and local communities with more planned as part of the EA process. We have a few years of permitting and engineering work ahead of us at Yellowhead, and we'll continue to maintain a disciplined approach to project spending during that period. So we've got lots on the go and exciting times ahead for our North American copper business. I'll wrap it up there. I want to thank all of our shareholders for their ongoing support. And I'll now pass the call over to Bryce for a financial update and we can then open up the line for questions following that. Over to you, Bryce.