Discovery Silver Corp.

Good afternoon, my name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery 4th Quarter and Full Year 2025 Results Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw a question, again, press the star 1. Thank you. I will now turn the call over to Mark Uring, Senior Vice President, Investor Relations for Discovery. Mr. Uring, you may begin your conference.

Thanks very much, operator, and thanks, everybody, for joining us today for Discovery's fourth quarter and full year 2025 conference call and webcast. Joining me today are most of Discovery's senior management team, Speakers in today's presentation will be Tony Makuch, our President and CEO, Alison White, our Chief Financial Officer, Pierre Roth, our Chief Operating Officer, Eric Calio, our Senior Vice President of Exploration, and Jose Hablera, our VP Sustainability and Corporate Affairs in Mexico. After each speaker presents, Tony will have some concluding remarks. As you know, this morning we issued our Q4 and full year 2025 results. The press release MD&A and financials are available on our website at discoverysilver.com and on CEDAW. Before we begin, I'd like to remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations, assumptions, and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking information. For more information about the FLI, please refer to the information on slide two in this deck as well as forward-looking information on our website. In addition, we'll also be making reference to a number of non-GAAP measures during this presentation. These measures are included to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to those of other issuers. Again, I refer you to slide three in our deck and our website for information on non-GAAP measures. Finally, all dollar amounts today will be in U.S. dollars unless otherwise indicated. With that, I'll turn the call over to Tony McCooch, Discovery CEO.

Hey, good afternoon. Thanks, everyone, for joining us for this call. I guess we didn't all get the memo from Doug Ford that we had other priorities for today, but anyway, we appreciate you being on. You know, maybe, and before I get on to the results, I, you know, always like to say, well, in the end, you know, when we have to acknowledge the people at Discovery, we made a lot of progress and, We are doing something special here and, you know, we have people in Port Pine, we have people in Chihuahua. We're doing some, I think, some great stuff. You know, our people live in Kimmichap, Lowell, Toronto, LaFerrari, a lot of different areas in Canada and Mexico. And anyway, thanks for all you do. And, you know, we look forward to continued success as we progress out of Q4 into 2026. Looking at Q4 in 2025, you know, with a solid quarter, In particular, adjusted earnings per share increased 75% from the previous quarter. We continue to generate substantial cash flow, even as we increase our investments for the future, and we continue to build our balance sheet strength. Definitely nice to be in a strong gold market. I'll briefly run through the numbers, and then others will get into the details. You know, there's a couple forward-looking statement things. Again, Mark made reference to them, so I won't do that. I'll just jump to slide number four. which summarizes our strong results for the quarter. And you can see production increased 6% to almost 67,000 ounces. Operating cash costs improved from Q3, largely reflecting inventory movements between the quarters. At the corporate level, our all-in sustaining costs increased from last quarter, but this was related to the higher sustaining capital expenditures in quarter. And last quarter, we said we would be increasing capex in Q4, and we did. So these are investment aims of driving our growth and helping us to improve the operations and ultimately to see lower cost costs and improve productivity over the next while. Going to slide five, and I'll just talk about our earnings performance. Not bad for a company with this first production, just nine months of, or eight and a half months of production, we already had significant earnings. Revenue totaled $274 million, a 16% increase from last quarter. The revenue does include gold sales of 64,000 ounces and a net realized gold price of $41.57 per ounce. If it does total to $126 million, similar to the last quarter, and there was a $45 million impact from an accounting charge related to recommendation obligations, that change brought down our dividend to some degree. And you can ask Alison about that a little bit later in the column after I pass the questions on. Earnings per share was $0.08 per share, while adjusted earnings per share were $0.14. As I mentioned, our adjusted earnings per share was up significantly from $0.08 last quarter. Slide six looks at cash flow and cash, our cash position. As I mentioned, we continue to generate a lot of cash flow in Q4. The operating cash flow totaled 163 million, up from 153 million the previous quarter. Pre-cash flow was close to $70 million. It was lower than the last quarter, but it, you know, again, it reflected our higher capital expenditures in the quarter. Our cash position in Q4 rose 20% to 410 million. Our total liquidity rose to just under $660 million, and total liquidity, including our cash as well, is $250 million from a revolving credit facility we finalized in Q4. It also has a $100 million accordion feature, but you may recognize this is all undrawn at this point in time. Going to slide seven, looking at our key investment programs. Total capital and expenditures was just under $100 million, including leases. In the quarter, sustaining capital expenditures were $34 million, mainly related to investments in oil, cotton, and board and new mobile equipment, capital development, and infrastructure at the underground mines. We also continue to invest in our dome mill and our tailings facility to support our operations going forward. Growth capital was largely focused on pre-stripping at the PAMOR and investments in our containers management facility. I'll talk to you more about that in a moment. Capitalized exploration, mainly related to resource conversion drilling, was almost $10 million, and you'll see momentarily that our exploration expenses will increase substantially in 2020. We feel it is as much a driver as high gold prices and production. What we can drive in terms of value with expiration drill bit is, I think, is enormous in this company. Speaking of expiration on slide eight, I think we put out two press releases, I guess, one in Q4, and we just put one recently out in Q5. And I guess in simple terms, we're getting excellent results everywhere we are drilling. Our resource conversion expansion drilling is going very well at Foil Pond, Boardman, and FAMOR, which is a three main areas where we're drilling. Also having success at district targets like Owl Creek and the Burlap Pit. We know Owl Creek being contiguous with Foil Pond, Burlap Pit, a target that's about a kilometer and a half west of FAMOR. In the results we issued earlier this month, we also reported very encouraging results at the TDZ zone. and favorable results from initial drilling. Eric will get into more of the details later in the presentation. I'll just turn now to slide nine. We did issue our guidance this morning with our Q4 results. That's our guidance for 2026. And I think our guidance shows the solid production growth from 2025 to 2026. unit costs that will improve as the year progresses and the continuation of a significant investment program to support our growth and improved performance. Slide 10, you know, production guidance is 260 to 300,000 ounces. It is important to note that production will be weighted to the second half of the year. Unit costs will start the year at high end of our target ranges, reflecting the ramp up of production, as well as the significant weighting of capital expenditures in the first half of the year. By the second half of the year, we expect to see the numbers that are in the lower end of our ranges and potentially better than the rates, specifically as we see some of the cost savings related to the capital investments. Going to slide 11, looking at our capital. At a high level, the run rate for capital investment in Q4 2025 will continue in 2026 and be weighted to the first half of the year. In terms of sustaining capital, we are investing significantly in replacing the mobile fleet to Hohepaun and Borden and in upgrading infrastructure. We're also investing in the dome mill and the dome tailings facility to both increase capacity and improve the efficiency of performance as well as our environmental standards in terms of how we want to progress, specifically in our tailings area. Looking at growth capital, the two largest items are investments at the TMA6 or tailings facility, including work to divide the No. 6 dam into cells. We did this at Lakeshore Gold with our Bell Creek Mill. We did it at other places. It has a number of benefits, including allowing it for progressive rehabilitation and reducing potential viabilities going forward as we progress and continue the deposition in these areas. Other key components of our growth capital are continued pre-stripping at Tamar. As we build the Tamar mine, bring the Tamar into commercial production probably by the end of 2027, as well as a new base at Borden. Going to slide 12, the $90 million to $100 million we're showing for Cordero is mostly related to the change in the land use fee. We did a change in land use, and we are expecting to receive this sometime in Q1 of this year, and then we feel pretty confident moving ahead with this project. And finally, as mentioned, we are planning a significant increase in our exploration budget in 2026 from 2025, mainly in the Porcupine region in Ontario. As I said, exploration is success-driven. We're having a lot of success in exploration, and we plan to do a lot of drilling this year, at least 280,000 meters of drilling. So with that, I'll turn the call over to Alison White, if all.