Iamgold Corporation Ordinary Shares

Thank you for standing by. This is the conference operator. Welcome to the I Am Gold Second Quarter 2026 Operating and Financial Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star then 0. At this time, I would like to turn the conference over to Graeme Jennings, Vice President, Business Development and Investor Relations for IAM Gold. Please go ahead, Mr. Jennings.

Thank you, Operator, and welcome everyone to our conference call this morning. Joining us on the call are Renaud Adams, Prison Chief Executive Officer, Martin Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, Ankit Shah, Chief Strategy Officer, and Annie Torkia Lagacé, Chief Legal Officer. We are calling today from IAM Gold's Toronto office, which is located on Treaty 13 territory, on the traditional lands of many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, Haudenosaunee, and the Wendat peoples. At High and Gold, we believe respecting and upholding Indigenous rights is founded upon the relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams.

Thank you, Graeme, and good morning, everyone. Thank you for joining us today. It was another strong and safe quarter for IM Gold. We produced 188,100 ounces of gold in the second quarter, bringing our year-to-date production to 371,700 ounces, positioning IAM Gold firmly on track to meet our full-year guidance of 720,000 to 820,000 ounces. Our company continues to generate strong cash flow with nearly 900 million of mine-side free cash flow produced year-to-date. This allows us to invest in our assets, strengthen our balance sheet, and Return Capital to our shareholders at the same time. Since December, we have repurchased more than half a billion dollars of IAM Gold shares. These repurchases, you know, reflects our confidence in the company's future in our view that our shares represent compelling value. That confidence is built on the growth we have across each of our mines. Over the coming quarters, we expect updated studies at Côté, Eslacan, Westwood, and Melligan. Our next phase of value creation starts at Côté. The first step is the updated mine plan and the technical report, which remains on track for the end of the year. For the first time, this plan will bring the Côté and Gosselin deposits together, building on the more than 20 million ounces of measured and indicated resources across the combined zone. The updated plan will define a near-term path to increase throughput towards 40,000 tons per day through targeted debottlenecking of the existing plant. This work is expected to be low-cost and high-return, supported by a larger reserve base and a longer mine life. In parallel, we're advancing trade-off studies on a larger expansion of COTE. We have adjusted the scope of this work to reflect the significant size and opportunity at Cotec. We are taking the time to assess the full scales of the asset, evaluating multiple scenarios to ensure that Cotec is positioned to deliver value for generations to come. At ESACAN, we continue to see strong cash flow generation, which remains a key driver of our share buyback program. In the first half of the year, we plan to release an updated mine plan that is expected to outline a mine life extension to 2035. At Westwood, our Quebec underground mine continues to redefine itself as a stable, cash-generative operation. Next year, we are excited to outline a path to extend mine life and increase underground throughput With a potential to transform Westwood into a larger, higher throughput, lower cost operation. And of course at Nelligan, we are advancing one of Canada's largest emerging gold camps toward an initial economic study next year, marking an important step in defining its long-term development potential. In summary, IAM Gold is performing well, generating strong cash flow, Returning capital to shareholders and building real growth for the years ahead. With that, let's get into the quarter. Starting with health and safety, our total recordable injury frequency rate was 0.70 for the quarter and is tracking at 0.56 here today. I would like to recognize the Westwood team in particular, whose continuous focus on safe operations set a strong standard. 50 come first to us, and I want to thank our teams across our operations for their ongoing commitment to safe and responsible mining. Learning to operation. IAM Gold produced 188,100 ounces to our account in the second quarter. At code 8, attributable production was 67,300 ounces or 96,200 ounces on a 100% basis. which was made possible as the plant operated at near full capacity in June following the conveyor belt replacement and the commissioning of the second crop crusher. The Sakana Westwood also delivers trunk waters with grades slightly above forecast. Cash costs, including royalty, were $1,289 per ounce per quarter and $1,244 per ounce year-to-date. For the full year, cash costs are tracking towards the upper half of our guidance range, with improvement expected in the second half as COSY production increases. All in sustaining costs, including royalty, are likewise tracking towards the upper half of the guidance range. As a reminder, both Coté and Esacana have royalty structure tied directly to the gold price. With the realized gold price averaging over $4,600 per ounce year-to-date, royalties have added approximately $380 per ounce so far this year, about $55 per ounce above our guidance assumption. We continue to monitor inflation and energy market volatility closely. In the first half of the year, certain input costs increased by approximately 3% in line with our expectations. In the second quarter, oil prices were approximately $25 to $30 per barrel above our guidance assumptions, adding about $35 per ounce above our cost guidance. With that, I will pass the call over to our CFO to walk us through our financial matters. Martin.

Thank you, Renaud, and good morning, everyone. The combination of strong operating performance and a favorable gold price environment continue to generate significant cash flow during the quarter. Our capital allocation strategy is to deploy funds to sustain and optimize our operations, fund our expansion and mine life extension initiatives, and then use remaining funds for strategic opportunities and shareholder returns. Net cash from operating activities totals $445.1 million during the quarter, an increase of $359.3 million When compared to the $85.8 million of cash from operating activities in Q2 2025. We used the operating cash flow to fund $115.6 million of capital expenditures, the full repayment of the remaining $100 million outstanding on the credit facility, $74 million paid to the government of Kinafaso related to the SACAD dividend distribution, and $147.9 million of shares repurchases As Renaud noted, since we initiated the share buyback in December, IAMGOLD has repurchased approximately 28 million shares for $510.4 million, which equates to approximately 45% of our mine site free cash flow returned to shareholders, a clear signal of our confidence in the value of our shares. In June, we further enhanced our financial flexibility by amending the credit facility, increasing total capacity from 650 to 850 million, extending the maturity to 2030, improving covenant terms, and lowering overall borrowing costs. The amended facility also includes a further 250 million accordion feature, providing additional liquidity potential. As a result, we ended the quarter with 501.4 million in cash and cash equivalents, No amounts drawn on the revolving facility and total available liquidity of approximately $1.35 billion. Revenues for the second quarter was $856.9 million on sales of 195,100 ounces at an average realized gold price of 4,384 per ounce. This was slightly below the quarter average as production was weighted towards the back end of the quarter. Adjusted EBITDA in the second quarter was $507.1 million and adjusted net earnings attributable to equity holders of $241.6 million or $0.42 per share compared with $77.3 million and $0.13 per share in the prior period. On a training 12-month basis, adjusted EBITDA has increased to approximately $2.2 billion. Cash flow from operating activities excluding working capital adjustments was $442 million in the quarter, an increase of $315.6 million year over year. Mindset-free cash flow was $368.9 million in the second quarter, a $228.4 million, or 169% increase compared to Q2 2025. Year-to-date mindset-free cash flow was $893.5 million, A $613.5 million or 290% increase compared to the same period in 2025. Taken together, these results reflect the fundamental transformation of the company's financial position. Just over a year ago, Ion Gold carried more than $800 million of net debt. As of June 30, 2026, the company is in a net cash position with an undrawn and increasing revolving facility And a balance sheet capacity to fund growth and return capital to shareholders concurrently. And with that, I will pass the call to Bruno Lemelin, our Chief Operations Officer, to discuss our operating results and outlook. Bruno?

Thank you, Martin. Starting with Cotego. Cote produced 96,200 ounces on a 100-person basis in the quarter, bringing the year-to-date production to 170,900 ounces. Prawn production is expected in the second half, putting Côté well on track to meet the production guidance of 390 to 440,000 ounces this year. The story of the quarter is really the story of June, when the plant operated at near full capacity following the conveyor belt replacement in May and the commissioning of the second corn crusher earlier in the year. On the mining side, we moved 11.7 million tons of total material With 3.1 million tons of ore at a strip ratio of 2.8 to 1, grain mine average 0.86 gram per ton, both the strip ratio and the grade reflects where we are in the mine plan. We worked on pushback areas and focused on opening up a new bench to set up the second half of the year. In the plant, we milled 2.9 million tons. We managed throughput early in the quarter ahead of the CV10 conveyor replacement in late May. Once the new heavier gauge belt was installed, we ramped the plant back to nameplate and processed over 1 million tons in the month of June alone. Head grades averaged 1.12 g per ton at recoveries of 93%, And I would note that reconciliation between our reserve model and mill feed continues to sit well within expected total rent sets. The most significant operational milestone in the quarter was discontinuing external contractor crushing by the end of June. We are already seeing the benefits as the processing costs in June averaged $17.72 per ton down from an average of $22.5 per ton over the prior three quarters. We have seen additional operating improvement. First, with better sized material now feeding the HPGR. We are seeing improved wear rates on the rollers. A longer HPGR lifespan should translate into lower maintenance costs and better crushing circuit availability going forward. Second, the mining fleet that have been dedicated to re-handling material for the contract crusher is now being redeployed on two mining activities. Combined with three new all trucks coming into service, we expect mining rates to step up in the second half. Looking forward, we anticipate the plant averaging nameplate of 36,000 tons per day over the course of the year and head grades between 105 and 115 gram per ton. Production is weighted to the second half on both higher throughput and higher grades. Turning to cost. Cote reported second quarter cash costs excluding royalties of $1,245 per ounce and odd and sustained costs of $2,082 per ounce. Costs remain elevated on external contractor crushing, contractor support for the conveyor repair, and scheduled maintenance, compounded by higher diesel prices. On a unit basis, mining costs average $4.49 per ton, Mine and milling costs $20.85 per ton mill in the quarter. Both remain above where we intend to operate, and the path to improvement is clear. On mining, the contractor crusher required significant re-handling and tied-up all-truck utilization. With the contractor phased out and three new all-trucks coming into service, that capacity returns to the pit. On mining, June's cost of $17.72 per ton gives us a real-world data point for what the circuit delivers without contracted crushing. We are targeting mining costs of $4 per ton and mining costs of $15 per ton by year-end, with further reductions expected into 2027. On capital, We invested $54.6 million at Coty in the quarter on attributable basis. Capital expenditures are to be weighted to the second half on equipment delivery timing and project schedule. Putting that together for the year, we expect cash costs, excluding royalties at Coty, near the top end of our $900 to $1,050 per ounce guidance rate. and ASIC excluding royalties at the top end of the $1,475 to $1,625 range. COTI carries a 7.5 gross margin royalties and various net smelter return royalties, which accounted for $309 per ounce in our cash costs or 20% of cash costs. Costs are expected to improve through the second half on higher production volumes, the removal of contracted crushing, Improve maintenance cycles and greater efficiencies as the pit opens up. With a clear path to higher production and lower cost, attention now turns to the next phase for Cote. On June 1st, we announced an updated mineral resource estimate that for the first time combined the Cote and Gosling zones together into a single block model. On a 100% basis, measured and indicated resources increased to 20.3 million ounces with 3.5 million ounces of inferred. This larger resource base will support our updated technical report and life of mine plan, which we expect to release towards the end of the year. The plan is expected to show a significant increase in both reserves and mine life. It will also set out a near-term path. to raise processing capacity beyond the current main plate of 36,000 tons per day toward a sustained rate of about 40,000 tons per day. That first step comes from further debaltoning and targeted plant improvement, not from a major new build. It includes accelerating certain works such as an additional birdy mill. In parallel, we are evaluating longer term expansion scenarios Our objective is to determine the right scale and the right development path for coating. For our project of this size, scope, and importance, it is critical we determine the optimal long-term expansion strategy. The additional non-recurring sustaining and expansion capital we are investing today supports that work. The plant improvements provide improved availability and capacity. The phase two pit pushback gives us operating flexibility in the near term and it also prepares the ground for a larger operation. We are reducing the risk of the bigger build well before we commit to it. We also continue to grow the resource. At Côté and Gosselin, we are drilling over 30,000 meters to test the extensions to the northeast to improve confidence in the resource and to convert inferred ounces into the educated figures. Turning to Westwood, the operation delivered another strong quarter, producing 32,400 ounces, supported by solid underground performance. Year to date, Westwood has produced 68,600 ounces, positioning well on track with our guidance target of 110 to 130,000 ounces. Underground mining total 104,000 tons at an average grade of 8.4 gram per ton with the Granduc open pit contributed 109,000 tons of ore as waste tripping continued to position the pit for future production. Mill throughput was 287,000 tons at the blended grade of 3.75 gram per ton and recoveries of 94%. Toput was lower than the prior year due to a planned mill shutdown early in the quarter, but overall operating performance remained strong. Most importantly, Westwood generated $56.5 million of mine site free cash flow during the quarter and $166.5 million year to date. The operation continues to demonstrate the value of the technical and operational changes implemented over the past years. Delivering safe and reliable production, strong margins, and meaningful cash flow generation. Turning to cost and outlook, Westwood continues to perform well across both operational and financial metrics. Cash costs were $1,606 per ounce in the quarter, and audience sustained costs were $2,163 per ounce. Year-to-date, ASIC is averaging $1,921 per ounce, which is tracking below our full-year guidance range. While we have seen modest cost increases related to additional drilling activity and higher explosive costs, overall cost performance remains strong. Looking ahead, our focus is on unlocking the next phase of value at Westwood. This year, we are investing around $30 million Expansion capital to advance exploration and development activities in the eastern extension of the mine, where drilling continues to demonstrate encouraging results, including a thickening of the mineralized system. Our teams are now advancing underground development into this area and conducting bulk testing to better understand its long-term potential. We expect to publish an updated technical report in the second half of 2027. This work is expected to support an extension of mine life and evaluate the potential for more productive bulk mining methods within the eastern zone. If successful, this could support higher underground throughput, improve mining costs, and increase production over time. Turning to Essacan, the operation delivered another strong quarter, producing 88,400 attributable ounces, an increase of 15% over the prior year period. Year-to-date, Essacan has produced 183,500 ounces, putting the mine well on track with our guidance targets. Performance in the quarter continues to benefit On positive rate reconciliation as mining progress deeper into phase seven, consistent with what we have observed in previous phases of the deposit. Mining activities total 12 million tons during the quarter, including 2.5 million tons of ore, while waste stripping remained elevated as we continue to advance the adjacent . Despite the higher stripping requirement, the operation delivered solid throughput of 3.2 million tons with head grades of 1.13 gram per ton and recoveries of 88%. Most importantly, SICAN continues to generate substantial cash flows. Mine site free cash flows total $162.1 million during the quarter and $464.8 million year to date, even after a $60.2 million tax payment. Over the last 12 months, ESSECAN has generated more than $800 million of mine site free cash flow, highlighting the strength of the asset in the current gold price environment. As we look into the second half of the year, mining will remain focused on phase 7 in the development of the Laos pit. Wild grades are expected to normalize as additional Laos ore enters the mine plan. The operation remains well positioned to achieve annual production guidance and continue generating significant free cash flow. Turning to cost, SACAM delivered a strong quarter cash costs excluding royalties were $1,214 per ounce, a reduction of 22% from the prior year period, and the audience sustaining costs excluding royalties For $1,691 per ounce. The improvement was driven largely by unit cost performance in the pit, where open pit mining costs fell to $4.79 per operating ton from $6.02 a year ago, as free digging in the initial separate benches of the pit reduced both explosives and energy consumption. Mining costs also improved to Thank you very much. Again, nine persons a year ago. Looking beyond 2026, we intend to publish an updated technical report in the first half of 2027, which is expected to demonstrate the potential to extend ESSACAN's mine life through 2035, supported by additional phases in the ESSACAN pit and the adjacent open pits. With that, I will pass it back to Renaud.

Thank you, Bruno, and congrats to you and your teams on strong and safe operational results. Turning to growth, beyond our three operating mines, the Nelligan Mining Complex in Quebec is where we see the next chapter of this company. Nelligan now hosts 4.3 million ounces of indicated and 7.5 million ounces of inferred mineral resources. The consolidations completed last December gives us 100% ownership of one of the largest pre-production gold camps in Canada on a single Contiguous land package. Our focus this year is on drilling. We have budgeted approximately $24 million across the complex in 2026 with programs at Nelligan, Filibert, and Munster Lake. Roughly 45,000 meters of close to 70,000 meters are complete. And we expanded the Nelligan program during the quarter from 18,000 to 24,000 meters on the strength of results today. Mineralization remains open along strike and at depth, and we expect to release drill results later this year. What makes the district compelling is not any single deposit, but the relationship between them. All of the primary deposits within 17 kilometers radius We expect to publish an inaugural technical report for the complex in the first half of 2027, which will bring this deposit together into a single development concept for the first time. Nelligan has the potential to become one of the premier development projects in Canada. And with the deposit still open, our focus remains on growing the resource and defining the full scales of this district. Before we open the land for questions, a few closing thoughts. This was another quarter of safe, consistent execution. We remain on track for guidance. We have generated nearly 900 million of mines like free cash flow here today, and we ended the quarter in a net cash position with nearly 1.4 billion of liquidity, while returning over half a billion dollars to shareholders since last December. Looking ahead, we have work on the way across every asset. At Cote, An updated technical report later this year, integrating Goethe and Gosselin for the first time with a much larger reserve base, a longer mine life, and a near path to approximately 40,000 tons per day. The consolidated resource point to a larger operations over time and will continue to advance that work. At its accounts, An updated mine plan in the first half of 2027, evaluating a mine life extension for 2035. At Westwood, mine life extension and underground expansion study in the second half of 2027. And at Mellingham, our inaugural technical report in the middle of next year. Each is about the same objective, understanding the full scale of what we hold. Thank you for your continued support. Operator, you cannot open the line for questions.

Thank you. We will now begin the question and answer session. To ask a question, To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue. The first question comes from Satish Kastanathan with Bank of America Securities. Please go ahead.

Yeah, hi, good morning. Thanks for taking my questions. My first question is on the COTE expansion study. Could you maybe provide a bit more color on what changed over the past three months that drove the shift to a more phased approach? Are you now leaning towards a much larger expansion, maybe doubling the capacity to 70,000 to 80,000 tons per day? Or did you come across some technical findings that require more time to complete the studies? Thank you.

Okay, so thanks for your questions and happy to provide more questions and Bruno you can add to it. Not to read between beyond more than call it discipline and diligent capital allocation at this stage. Becomes obvious over the last few months as we advance and continue to look at the opportunity that this large resource base at Cote and Gosselin, you know, provide for potentially multiple different scenarios. And quite frankly, when you're looking at the next three years, we'll be pretty much executing on the same. It doesn't really matter of the scenario. The next three years are a lot around focusing on the improvement, on reducing our costs, or hitting our 36 on a very sustaining basis, and then slowly ramping up to 40,000. We're going to continue. We're not going to waste our time, obviously. We're going to continue with our baselines. We're going to work on vibrations, all what is required to potentially. But as you mentioned, it's not so much about is it like a 50, 60, 70 more. We just don't want to limit ourselves on the multiple and take just more time to really assess different scenarios. So if you remember back in 2022, the company released a 43-101 at 36,000, moving towards 42,000, from which now we're sitting at about 7 million of reserves. So the opportunity here is to update this with new projections from 36 to roughly 40. We could potentially do a little more, and update our costs and so forth, and just continue to... Just continue to assess and just pick what we think is the best. This is one of the top resource base in Canada. It's not about rushing the outcome of it, but really take the time for proper and discipline. There is no technical challenges beyond. It's just multiple opportunities. We have mentioned recently, you know, of course, up to very recently, the opportunity to go up to 50,000 and we were challenging ourselves that we do the dry right away at the higher throughput. So clearly there is opportunities at Cote that deserve a little more of discipline and look at and come up down the road with what is the best. So again, nothing to be Worried about? Definitely no technical challenges, more than discipline and diligent approach. Bruno, happy if you want to add anything.

Yeah, so the main objective of this technical report is also to valorize a concurrent reserve on the Gosman side, so you will see a large expansion on the reserve side coming from that report.

And quite frankly, as Bruno mentioned, there is a There's very low to nil differences. We will capture the massive increase of the reserve base in the short term, the 40, 50, and so forth. This is not what drives the value more than the extensions of the life of mine and the massive extensions of the extension of the reserve base and so forth. And work diligently. To hit the 36 consistently and up to 40, lowering our costs, open the pit. So again, pretty much the same execution over the next two years. We'll use the time for environmental baseline and advance whatever. There's some permitting that could advance as well, water them and so forth. So we'll be more specific in the report and we'll be capable to provide the next three years. For this, and again, depending on the expansion down the road, it doesn't really change the next three years anyway.

Okay, thank you. Looking forward for the update in fourth quarter. Maybe my second question is on your capital allocation priorities. Great to see continued strong buybacks. With the company now in a net cash position and generating strong free cash flow, What is your latest thinking on buying back the 50% Cote Royalty from Franco Nevada and on the initiation of dividends? And where does M&A fit into this priority list?

So, Martin, please go ahead.

Good morning, Satish. We continue to look at the buyback opportunity of that royalty at Franco, and there's many reasons why it would make sense for us. The price would be the same as the price that was set a year ago in a much lower gold price environment. And there's many other impacts, including reducing the cost structure and burden on Kote. So we continue looking at that. In the future, we can fund that with internally generated cash flow. And we have until April of next year to make that decision. So we are looking at that very closely. The price doesn't change, so there's no real reason for us to do it earlier than when it makes economic sense to do so. On the dividend, we continue to look at this year as a good year to buy back shares, and we'll continue using the ex-account cash flows to fund that buyback. And then beginning of next year, as we are in that net cash position, as you mentioned, it would start making sense for us. So we are looking at that dividend starting early next year.

Any thoughts on M&A?

I don't think so. We'll comment on M&A at this stage. We'll remain very focused and continue to create value for our shareholders.

Okay. Thank you. Congrats on a strong quarter. Thank you.

Thank you. The next question comes from Mohamed Sidibe with National Bank. Please go ahead.

Hi, Rohit. Taking my questions and congrats on the strong operating quarter there. Maybe just a follow up on the expansion to the 40,000 tons per day there. So, if I recall correctly, the prior touted expansion to 50,000 tons per day also was understood to have a doubling of the dry line, a third vertical mill and an increase by an ordnance capacity. For this deep hotel necking to 40,000 tons per day, can you provide us with a little bit more color on how we should think about capital for data optimization versus the previously call it maybe 500 million and change that was envisioned for the 50,000 tons per day case? Thank you.

Well, essentially, as I said, the most important thing is the next three years is pretty much the same scenario. So if you remove like the expansion and you're looking at optimizations, we have the discuss at large. This year, we're spending around 80 to 5 million in growth capitals to open the pit, prepare the pits for larger volume and so forth, so advancing well. And you could expect this spending to continue in 27, 28. And at that point, we hope that the pit will be fully opened, you know, and well, not fully open to the full, but provide, you know, for larger volume mining and more efficiencies. We also spending more sustaining capital this year to improve in some aspect and expect that to continue as well as we want to install the repeat system in the fines and the course and proper continuum of operations. This is a huge ticket item. We'll improve some infrastructure as well as we continue to expand the mine fleet. So there would be some needs for our maintenance facilities as well, improvement and so forth. And so the next three years is really about positioning the sites to be a very strong, low cost, long-term concept. This is the focus. So not much of a difference to what we have. We have already discussed in the past of the next three years. And the only thing is, We have mentioned that the 50,000 starting maybe 2930 could it be in the range of the 500 to 750 million of capital. This is was really to bring it from 40 towards the 50 and this is what we're parking for the time being until we have a better view of what is the optimum scenario down the road. But expect the execution pretty much on the sustaining capital optimizations Thank you. That's very helpful. And then maybe if I can move on to Côté into the quarter. Great to see the process cost improvement in June.

And I think mining costs were also lower quarter. So how should we think about mining and processing costs? Specifically, I think you pointed to about $18 per ton realized in June on the process cost front. But how can we think about that improvement into Q3 and Q4, the asset, and into 2027 towards kind of your target of 4 and 15 there? Thank you.

Hello Mohamed, this is Bruno. First, we have a program that is tracking those costs and we have close to 31 initiatives meeting and tracking those costs and trying to get them down. I would say that the reduction or the elimination of the contracted crushing is going to help. Because now the fleet, like I mentioned, is going to be fully dedicated to expat mining. So that will increase the volume of mining. So just on a volume basis, that will increase, that will help decreasing your unit costs. Also, we are adding new units in the fleet. And after that, our Consolidation Improvement Program has identified, like I mentioned, 31 initiatives that we're tracking. And we're very, very confident and we're feeling strong that we're going to be able to meet our $4 targets on the mining side by year-end. Same thing is happening with processing. What happens is we have the second cone crusher is helping to have the desky anulimeti entering the HPGR so that the size The top end that goes to the HPGR is, as per spec, we expect longer life from our local rollers or tires at the HPGR. So in the past, we used to change them twice a year. Now we expect to change them once a year. So that's going to have a big impact on our, positive impact on our maintenance costs. And also, availability, because you don't stop the HPGR for nothing. Increase availability, improve granulometry, and better efficiency in your maintenance cycle. We have also identified a numerous amount of initiatives from our cost improvement program, and we are very well positioned to be meeting our $15 per ton target by year end.

Great. Thanks a lot for that, Colin. And in fact, if I may, a final question for Martin, just on the income tax payment for the remaining second half of the year, how should we think about that spread for the remaining about $115 million there?

Thank you. Good morning, Mohamed. So for the income taxes, We made a larger payment in Q2 in Burkina and that's normally what happens. It's your catch-up payment every year because we do buy quarterly payments and then the future payments is based on what you expect it to be. So the income tax payments for the remaining of the year is between 35 to 40 million per quarter. And then we also will be paying the withholding tax on the new declared dividend in Burkina Faso of 26.8 million. Thank you. The next question comes from Anita Soni with CIBC. Please go ahead. Hi, good morning. Congrats on a strong operational quarter.

I think a lot of the questions have been

Asked and answered. I just wanted to, I guess, and with Bruno talking about the mining rates, I was going to ask about the stripping. How should we think about that into the back half of the year? Because I think the beginning of the year was a little lighter on the stripping side than I had expected. This is at Côté.

Yeah, the stripping ratio should be around, I'd say about 2.6 tons to one.

That's in the back half of the year, okay. Any change to the grade in the back half of the year? I know you got it to 1.05 to 1.15, but any variability in terms of lower than higher or higher than lower in Q3 versus Q4?

That's correct. So we expect stronger head grades or grade mine in the second half of the year. Like I mentioned, ranging between 105 to 115 gram per ton, which will help. Having a stronger H2.

Okay, and then just in terms of going back to the study, could you just clarify for me in simple terms what we should expect to see in the study? So a path to 40k ton per day with the CapEx associated with that, and then longer term, what would you be including in the study that you'll release in Q4? Or I guess, is it in Q4 or with Q4 results?

Yeah, we expect to release the results of the report at the end of this year. That will indicate, okay, how we can valorize the Gosselin Reserve. Like I mentioned, the main objective of this report is to understand, okay, how many reserves we have from Gosselin. So we expect a large expansion in our reserve base when you tie the Côté and Gosselin block model all together. It's called the Superbit concept. So that's objective one. That's a 40,000 ton per day cadence and it's adjusted cost structure. So this is basically what we need to be expecting, but also in that technical report, there's a section on future opportunities and that's where we're going to also indicate what we see in the future in terms of potential expansion. Okay, and then one more.

If I could just say one thing, Anita. So the way to really looking at this, let's say at the 36 to up to 40, I think it's fair to say that you maximize the depletions of Cote before you have the obligation to cross, you know, and start mining the Gosselin. So you maximize potentially in bit co-disposal and so forth, as we have largely discussed. As you advance the throughput towards the 50 and eventually beyond the 50,000, comes the obligations to start Gosling a little quicker to a point that a scenario like a 70,000, basically you would be mining as soon as possible both bits. So that's really where it's being played. So that's a capital allocations versus benefits. And we want to do like the proper allocation continue to work hard on the trade-offs and so forth. And again, as I mentioned, focusing on the next two, three years on optimizations, which basically is the same. But as we advance in time, the game is there. The game is about balancing capital allocations versus how fast and quicker you want to build, you want to mine Gosselin's, and what does that play in the capital allocation.

So this is really how we trade off.

Okay, so that was going to be my next question. With respect to the tailings capacity under the 40k time per day scenario, is the capacity you have sufficient to what you would expect the 40k time per day scenario and the reserves that you would incorporate with this study at your end? Or would you have to do some additional planning?

Yeah, so that's That will require, like right now, the TSF or the TMF has a capacity up to 233 million tons. So, of course, by just including Gassin, you will need additional tailings capacity. That's what the project team is currently looking. Adding more capacity, but also looking at other options like co-disposal, like Anou mentioned. So those are the kind of trade-offs that are going to be published in the technical report at the end of

As a rule of thumb, there is maybe somewhat around the 200 million tons of tailings that are like, where do they go? But yes, there wouldn't be any issues to find the space for. But as you increase the throughput of the mining, as you reduce your chains of coal disposal, but you would just build extra capacity larger, but it's all fixed.

And co-disposal, meaning that you would be placing some ore within parts of the Cote pit that have been depleted and somehow sectioned off?

That is correct. That is correct. So there is an opportunity here as Cote is depleted that not just uses for tailings, but eventually some waste as well. Okay.

All right. Thank you. That's it for my question.

Thank you. Thank you. The next question comes from Matthew Murphy with BMO Capital Markets. Please go ahead. Excuse me, Mr. Murphy, your line is open. Is your phone muted accidentally?

Thanks. Thank you. Please go ahead. Yes, sir. No worries. I had a question on us again. You have another dividend declared. And while you're studying this mine life extension, how much cash do you keep in Burkina? And do you have to let that build up a bit? In the event you go forward with the extension.

Go ahead, Martin. I'm so sorry. I know we're looking for the answer here.

Good morning, Matt. So it's our decision how much cash we keep in Burkina. At the moment, depending on the timing of the year and when the tax payments and payments like that is scheduled, it's between $100 to $200 million. When we look at next year, there is more than enough cash flow for ISACAN to fund all of the potential mine life extension by itself, and then still a considerable portion then to repatriate to ungold. So the timing of the cash flow means we don't really need to build up a larger balance there. It just is sufficient as they generate cash to fund additional capital.

Got it. Okay. And then this latest dividend, should we think about that when it comes out in regular payments, that that's like a year-long process, and then you look at the next dividend?

Yeah. So the current dividend that we declare, the $400 million of our portion, if the gold price averages about $4,000, it will take Thank you. The next question comes from Tanya Drakoskonek with Scotiabank. Please go ahead.

Oh, great. Good morning, everybody. Thank you for taking my question. Just so that I understand completely on this, Kote, and just some of your cash flow that would be going out. Renaud, I think you said that 80, 85 million of expansion capital for the next couple of years just to get to 40,000 tons per day and maintaining that. would be about, you know, for three years, that'd be about $250 million or thereabout. And then I've got this $350 million potentially going out for Cote Royalty if I was to buy that back. Should I be thinking then that that expansion of 500 to 50,000 tons per day would be something that probably you wouldn't look at spending until your 29, 2030 timeframe? I'm just trying to see.

Marthinus Wilhelmus Theunissen, Bruno Lemelin, Dorena Quinn, Graeme Douglas Jennings, Annie Torkia Lagacé, Luc-Bernard Denoncourt Ing. Some of the improvement, like we discussed, to go to the 40,000, you would definitely put repeat system and improve some aspect operational, but this is not the expansion per se. So that would continue. So to your point, you're right. So far, what is no longer on the paper, and we'll see how it goes as we continue, is the extra probably five to seven hundred million dollars that we have accounted for starting potential in twenty nine over twenty nine thirty to bring it from the forty to the fifty. So that portion only is part. But anything else expect the organic, expect the gross capital for the mine component to continue in twenty seven, twenty eight. And expect our sustaining capital to have a component like this year of improvement. And the quickest we could install those repeat system, the quicker we get to the 40,000. So that would be the priority. We may increase it to go faster, but roughly the next three years is really about limiting the capital as much as possible to the 40 stage. And Martin, happy to.

Yeah, thanks, Renaud. And morning, Tania. This year we are spending about $50 million of capital to help us increase the efficiency of operation and reduce the unit cost. We include that in sustaining costs in our reporting, and we expect to continue to spend up to that amount every year, maybe a bit more in the next couple of years. And that is to fund the initiatives that Bruno also alluded to, to bring down the unit cost. And the payback on that is pretty good because the amount of times in this large resource, any improvement on your dollar per ton cost pays back that capital pretty quickly. And that's why we want to make this investment in the next few years.

Okay, so that's in your $160 million plus or minus sustaining costs that you have guided for this year. I guess what I'm really trying to get at is for us to get to that $40,000, which you're going to be providing in the study, from the mining side, there's something. From the processing side, there's something. The allocation of growth between expansion and sustaining is sort of for the two. So how should I think of that cost? I'm afraid, Tanya, we cannot be that precise, to be very frank, because that's exactly what is the last portion that we're refining as we speak, is the capital for each block.

We would be releasing those numbers in the fourth quarter, so you'll be fully equipped to foresee the next three years as soon as the latest December. So I would not advance too much on it, and I would refer to the upcoming report, which will clarify our next three years.

Okay, we'll wait for that. Maybe just on analysis. I look at that complex, one processing facility, and I see the four deposits. How should we be thinking about that from a conceptual level and a high level? Is this a camp that could do 300,000 ounces, 400,000, 100,000 each from each deposit? I'm just trying to think of what could this complex do.

Yeah, the complex has definitely the resource base, you know, to eventually come up with a scenario that could be probably as high as 400,000. This is our objective here. So some sort of a, not saying that it's a can, it doesn't have any potential beyond the 2035, but it's very important to us that we find A way for the continuum here, and eventually, should the mine doesn't go beyond 35, so at least we have a continuum, but in Canada. So we think with the starting of Nelligan's, with Philibert, and with the underground of Munster Lake, the concept of the three, we're working and generating something that's between the three and the four, but we're definitely looking at towards the 400 per annum.

Okay, we'll look forward to that study as well. And then maybe just lastly, just how should I be thinking? You gave guidance on COTE for the second half of the year with the higher throughput, higher grade. How does Westwood and ESSECAN, how do they look for Q3, Q4? Is it evenly distributed or is there anything greater throughput that I should know about?

For a second, it's going to be pretty much even, a little bit stronger on the Q4.

Sorry, is that for Westwood? A bit stronger in Q4?

I thought you were talking about the second. So, yeah. So, for Westwood, it's stronger in Q4.

We did have a very strong H1 at Westwood, so H1 times 2 will definitely put beyond, but we see an H2 that would be strong, but not necessarily stronger than the H1. And I think it's a can we're now pretty much the same.

It's a can because you have the rainy season. Thank you. The next question comes from Kerry McCrury with Canaccord Genuity. Please go ahead. Good morning, guys.

Just a quick one for me.

You mentioned the performance at Côté in June. Just wondering how it's gone through, you know, we're through July now and into August, if that's still running at that nameplate.

Well, it goes very well. Like the thing that we're seeing is the addition of the second cone crusher is giving us like great performance. I call it peak performance that goes even beyond the 36,000 tons. The name of the game is to have sustainment, is to have that shortened performance and to be having it like sustained over time. So this is our current plan right now. So that's what we've been doing in July. Great results, but what we want to do is to be able to have that kind of performance along over the year. And then we can have a good baseline for what is the next bottleneck and how we can get to the 40,000 sun per day. But right now that's what we work, but we really like what we see with the addition we made lately with the second comb crusher, HPGR that is well aligned, the interface between the mine and the mill. So we see great integration between the mine team, the mill team, And we see peak performance that are totally impressing us, but the fact here is that we need to have those kind of performance to be sustained over time.

Still comfortable with the $36,000 for the second half of the year. Yep.

You know, everything is in place to average it, and there's a little bit of a transition, you know, getting used to not having the aggregate plans, you know, to rely on. So it's like you rip the bandaid, you know, and you learn to... We had a good month of June. Like Bruno says, we see several days, you know, with peak above. So now it's about, you know, learning to stabilize and producing those tons. But the capacity is there for sure.

I need to mention that in August, it's our annual shutdown.

So we need to take that into consideration.

How long is the shutdown? Five days. Okay, great. That's it for me. Thanks, guys.

Thank you. Thank you. This concludes the question and answer session. I would like to turn the conference back over to Graeme Jennings for any closing remarks.

Graeme Jennings Thank you very much, operator, and thanks to everyone for joining us this morning. As always, should you have any additional questions, please reach out to Renaud or myself. Thank you all. Be safe and have a great day.

Thank you. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.