McEwen Inc.

and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. I will now turn the call over to Mr. Rob McEwen, chief owner. Please go ahead, sir.

Thank you, operator. Good morning and welcome, fellow shareholders, analysts, and interested investors. Year-to-date, 2025 has been an eventful year for us. with the higher prices of gold, silver, and copper brightening the outlook for our operation. We've increased our liquidity by using a financial instrument called a capped call convertible note. This instrument allowed us to reduce potential share dilution by setting an effective conversion price at 100% premium to our share price at the time of the transaction. The majority of these funds will be used to advance the development of our fox complex, and we expect that once this work's completed and the stock and gray fox mines are in production, our consolidated annual production in 2030 could reach as high as 225,000 to 255,000 ounces. This represents an increase of over 80% above our current production. So let's start with some other good news. It's taken some time, but our 49% interest in the San Jose mine has once again paid a dividend, and we're expecting more during the balance of the year. During the quarter, we were delighted to see Goldbar produce 10% more gold than budgeted at a cash cost 24% below the low end of our annual guidance at eleven hundred and forty six dollars as opposed to the low end of our guidance of fifteen hundred dollars However, I expect you will be alarmed when you see gold bars All in sustaining cost per ounce of approximately twenty two hundred dollars an ounce. I want to explain this high number of It was a result of our decision during the quarter to access a gold zone that had been uneconomic at lower gold prices, but was quite economic at today's gold prices. So we decided to accelerate the stripping rate in the first half of this year. And so far, that's cost us about $7.5 million. in order to increase our production and lower our almond sustaining costs in the second half of the year. Financially, Q125 compares well to Q124. I'll give you some examples. Our gross profit was up 68% to $10.1 million. Our adjusted EBITDA was up 38% to $8.7 million. Our cash and cash equivalents increased to $68.5 million from $17.5 million. Our consolidated working capital increased to $61 million, as opposed to a negative $6.5 million. Our total debt went up to $130 million from $40 million. Our debt cost of service went from 9.75 to 6%. And our net debt is currently standing at just over $42 million. So, speaking of our FOX complex, it was a disappointing quarter from an operational perspective because production was lower than budget and cost per ounce were unacceptably higher than budget. However, many of the reasons for the underperformance are expected to be behind us, with production and cost per ounce for the balance of the year looking much improved. Speaking of FOX, on a positive note, we just received our permit to construct a ramp to the underground at the stock mine. This is a key element in our plans for the stock complex expansion. So we have exploration going on, active programs at both the Fox Complex and at Gold Bar, and we will be releasing updates on that throughout the year. We just put out a release earlier today on our exploration showing, particularly at the Gray Fox, how that resource has been growing quite rapidly some good grades over nice intercepts, quite optimistic that this still has quite a bit more room to grow. And with that, I'd like to open the session for questions.

As a reminder, to ask a question, you will need to press star, followed by the number one on your telephone keypad. To withdraw your question, press star one again. We will pause for just a moment. And your first question comes from a line of Mike Kozak from Cantor Fitzgerald. Your line is open.