Kuya Silver Corp

Okay, as folks start coming into the room, I will say good morning or good afternoon, depending on where in the world you're logging in from today. I'm Rami Mayoni. I'll be the moderator for today's call, but I've got with me today David Stein, CEO, President and Director of Kuya Silver, in order to go over the company's Q2 financials. David, how are you this morning?

Good, thank you. And yeah, thanks everyone for joining us this morning. I'll just jump right into an introduction and then we can open the call up for questions. So, good morning. The second quarter was another meaningful period of progress for Kuyu Silver as we continue to advance the Bethania mine from an early stage operation towards our planned phase one production level. I'd like to highlight three themes before we take questions today in terms of where we are today. First, production at Bethany continues to grow. Second, we have the financial capacity to execute our development and exploration plans. And third, we're building a broader pipeline of opportunities that can create value well beyond the current mine plan. Beginning with Bethania, we mined 5,097 tons of mineralized material during the second quarter, a 66% increase from the first quarter and a new quarterly record. We also processed a record 23,912 ounces of silver or just over 30,500 silver equivalent ounces during the quarter. June was particularly encouraging. We achieved record monthly production of 13,273 silver equivalent ounces, while the average silver grade increased to 6.66 ounces per ton and recoveries increased to approximately 82%. We also recorded a new daily production high of 124 tons. These results demonstrate that the operating team is making steady progress while simultaneously carrying out the underground development required to support higher production. During the quarter, we completed a record 437 meters of underground advancement, generating approximately 1500 tons of development material. that development work is very important. Our objective is not simply to maximize the short-term production from the mines existing infrastructure. We're investing in the access materials handling capacity and the available mining areas required to operate Bethania at a meaningfully larger and more consistent scale in the future. We are continuing to onboard contractors to supplement our workforce and accelerate both mine development and underground drilling. The mine team has also initiated a focused development program over the next couple of months intended to make additional mineralized material available for mining later this year and into 2027. In parallel, we are installing a dual car hoisting system, which is expected to be commissioned in October. This upgrade is intended to improve underground materials handling efficiency and provide additional flexibility and redundancy as development advances. Finally, financially, Kuya ended the quarter with approximately $25.5 million in cash, US dollars. This provides us with a strong foundation to fund the Bethany Development Program, our expanded drilling plans, and the infrastructure required to support our phase one objective of 350 tons per day. Revenue for the second quarter was approximately 1.25 million, bringing revenue for the first six months of 2026 to over $2.7 million, more than double the comparable period of 2025. Our financial results continue to reflect the fact that Bethania is in a capital and development intensive ramp up period. The net loss for the first six months of the year was approximately $2.8 million compared with 1.35 million in the prior period. This is principally as a result of increased activity at Bethania and expansion of our organizational capabilities, partially offset by higher revenue. We believe these investments are establishing an operational platform needed to increase production, improve consistency, and support the longer-term growth of the Bethania district. Exploration and evaluation spending is expected to increase during the second half of the year as our expanded drilling program gets underway. Beyond Bethania, we reported preliminary results from our evaluation of historical tailings and stockpiles of the Silver Kings project in Northern Ontario. The initial reconnaissance program identified meaningful silver and cobalt grades in several areas, including a master composite sample from crushed material at the Kerr Lake Mill that returned 168 grams per tonne silver and 0.365% cobalt. Another master composite sample from the frontier tailings returned 75 grams per tonne silver. These results are preliminary and should not be considered representative of an entire stockpile or tailings facility. However, they do support further work, including more extensive sampling, metallurgical testing, and ultimately where warranted resource estimation. This represents a relatively low cost opportunity to investigate potential value in material already located at our surface across the extensive Silver Kings property. Taken together, the second quarter reflects a company that is continuing to execute on several fronts. We're increasing production, advancing critical underground development, maintaining a strong balance sheet, and evaluating additional opportunities across the asset portfolio. There's still substantial work ahead of us, particularly as we advance Bethania towards a larger and more consistent operating scale. However, we believe the production records achieved during the quarter and the progress made in June with the work underway now underway provide a solid foundation for the next stage of Kuya Silver's growth. With that overview, I will ask the moderator to open up the call for questions. For those who may listen on replay, we welcome your feedback and I would encourage you to visit our website at www.kuyusilver.com to book a meeting with management. Send us an email at info at kuyusilver.com and follow us on your favorite social media platform. Thank you.

Great. Thank you, David. Before I get into a couple of questions that I have, I'll call in Jake Zegalski, who's backstage right now, who's managing director and senior research analyst from Alliance Partners. I had to ask a couple of questions of his own, then I'll jump into a couple of additional ones. Go for it, Jake. Thank you.