Mandalay Resources Corporation

Good day and thank you for standing by. Welcome to Mandalay Resources Corporation's Q1 2025 conference call. Today's call contains forward-looking statements which reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results of the company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from the current expectations are disclosed under the heading Risk Factors and Elsewhere in the company's annual information form, dated March 28, 2025, available on CDAR and at the company's website. Mandalay Resources disclosed its financial results at market close. You can access their consolidated financial statements and MD&A on either the company's website or through our profile on CDAR. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. Joining us today on Mandalay's call are Fraser Boucher, President and CEO, Hashim Amin, Executive Vice President and CFO, Ryan Osterberry, Chief Operating Officer, and Chris Davis, our VP, Operational Geology and Exploration. I would like to turn the call to Mr. Frazier Boucher.

Thanks, operator, and for everyone joining the call today. This morning, we'll primarily review Mandalay's first quarter performance with some commentary on the proposed merger of equals with Hallicane Resources. Please note, all dollar references made in this conference call are in U.S. dollars. Mandalay started 2025 on a good note. The theme this past quarter was clear. transformation through disciplined execution, prudent capital allocation, and continued exploration investment. In the first quarter, we delivered a 41% year-over-year revenue increase to $78 million, supported by strong metal prices. We also achieved a 152% year-over-year increase in net income to nearly $15 million. Importantly, we ended the quarter with over $88 million in cash and no debt, a testament to our operational consistency and financial discipline. Now, free cash flow generation over the next quarter at similar gold prices to this past quarter will not quite replicate Q1 due to planned increased capital investment and taxes owing. Subsequent to the quarter, we announced a transformative transaction for Mandalay with a proposed merger of equals with Alkane Resources of Australia. The combined company will have three well-established cash-flowing mining operations in Tier 1 jurisdictions, a pro forma production base of approximately 180,000 ounces by 2026, and enhanced scale to pursue a re-rating opportunity. that re-rating opportunity is based upon increased free float, share trading liquidity, indices inclusion, and dual listing on both the Australian Stock Exchange and Toronto Stock Exchange. We're confident this is the right strategic move to unlock long-term value for both Mandalay and Alkane Resources shareholders. I would now like to hand the call over to different members of my executive team to recap the solid quarter results, which have followed on from the exceptional year we had in 2024. First, Ryan Osterberry, our Chief Operating Officer. Ryan?

Thanks, Fraser. From an operational standpoint, quarter one of 2025 was a mixed but expected quarter Our consolidated gold equivalent production was 22,342 ounces, down 10% from quarter one last year, but in line with guidance. Starting with Costa Field, as planned, quarter one of 2025 was a transitional quarter for the site. We produced just over 9,500 ounces of gold and 161 tonnes of antimony. This 20% year-over-year reduction in gold output and 60% reduction in antimony were due to lower head grades as we mined scheduled areas of the shepherd and yule veins, which were at the lower end of our grade distribution. Gold head grade averaged 0.96g per tonne, down from 12.4g per tonne, and antimony dropped to just below 1% from 2.2%. Mining volumes decreased 18% year over year to just over 25,500 tonnes. This was a reflection on the production being mined from the extremities of the deposit, hence the mucking and backfilling cycle times were substantially increased. Coupled with a dedicated safety drive, which slowed production, that was adopted for quarter one this year after a poor performance in this discipline at the end of 2024. Capital development was focused on establishing a new exploration drill drive. On the processing side, we delivered a 5% increase in throughput to just over 34,400 tonnes. The improved two-stage crushing circuit is performing well, feeding a finer and more consistent product to the mill, which contributed to more stable plant performance despite lower grades. Looking ahead, once the new tailings storage facility comes online in quarter two of 2025, we expect to see a notable reduction in tailings related costs. The facility will provide approximately six years of additional capacity and remove the need for necessary pace fill operations that have inflated our unit costs in recent quarters. As for Bjokdal, the quarter showed some encouraging signs. We produced 10,827 ounces of gold, a 4% increase from quarter one of 2024, driven by improved underground mine grade from the main zone and enhanced mill throughput and recoveries. Underground ore mine decreased 9% to just over 225,000 tonnes. due to restricted access to one of our production fronts in February, as well as temporary equipment constraints, specifically a shortage of loader availability impacting backfilling activities. That said, we saw a strong rebound in ore development, advancing nearly 1,100 metres, a 29% increase from quarter one of last year, aided by the mobilisation of a dedicated contractor to bridge the gap on delayed 2024 development. Processing volumes were just over 355,000 tonnes, up 3%, thanks to operational improvements and finer screen trials that increased plant reliability and efficiency. We also made strategic equipment investments, including a new cable bolter, and advanced our equipment replacement program, which is essential to sustain productivity and improve operating consistency in the quarters ahead. To summarise, both sites executed to plan and we are now better positioned for stronger production and improved cost performance in the second half of the year. Now over to Hashim.