Trekor Metals Limited

Thank you for standing by and welcome to Trecker Metals Limited Q2 Earnings Conference Call. I'd like to remind everyone that this call is being recorded and that 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 rest time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Brian Bergot, Vice President, Investor Relations. Please go ahead.

Thank you, Joyce. Welcome, everyone, and thank you for joining Trecker's second quarter 2026 conference call. The news release and regulatory filing announcing our financial and operational results was issued yesterday after market close and is available on our website at treckermetals.com and on CDAR+. I am joined today in Vancouver by Trecker's President and CEO, Stuart McDonald, Trecker's Chief Financial Officer, Bryce Hamming, and our COO, Richard Tremblay. As usual, before we get into opening remarks by management, I would like to remind our listeners that our comments and answers to your questions will contain forward-looking information. This information by its nature is subject to risks and uncertainties. As such, actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, I encourage you to read the cautionary note that accompanies our second quarter MD&A and the related news release, as well as the risk factors particular to our company. These documents can be found on our website and also on CDAR+. I would also like to point out that we will use various non-GAAP measures during the call. You can find explanations and reconciliations regarding these measures in the related news release. and finally all dollar amounts we will discuss today are in Canadian dollars unless otherwise specified. Following opening remarks, we will open the phone lines to analysts and investors for questions. I'll now turn the call over to Stuart for his remarks.

Hi and welcome everyone. Thanks for joining us today for the Trecker Metals second quarter earnings call. It was a solid quarter for the company. A steady operating performance at Gibraltar allowed us to capitalize on a great copper price. We've often talked about the leverage that we have to copper and that was shown this quarter with very strong EBITDA and operating cash flows. Bryce can provide some more specifics on the financials in a minute but first I'll start with a review of the operating highlights from the quarter. Starting with Florence as it was the first full production quarter for the new operation and we're very pleased with the progress on the ramp up to date. We were able to produce just over 5 million pounds of cathode in the quarter at Florence. The operating team there has done a great job of stabilizing all the key process circuits, balancing injection and recovery wells in the wellfield, solution flows from the wellfields to the SXEW plant, and all the way through to plating and harvesting of copper cathode. So the SXEW plant is running smoothly with no significant issues. On the wellfield, the team is continuing to adjust and optimize operations, but generally the initial wells have achieved expectations in terms of flow rates and copper grades or specifically our PLS grade. So going forward the key to the ramp up is well field expansion. In June we added the first group of 20 new production wells. Those wells are now providing additional copper flows to the plant. We have another set of new wells which were just approved by the state regulator and 18 of those are being integrated into the well field this week with more to come later this month. Drilling is progressing well, and we should soon be into a more regular cadence where new wells are being added every month. To be clear, when we talk about new wells, that includes recovery wells, injection wells, and hydraulic control wells, and they can all be repurposed and used in different ways as the well field advances. In addition, the well field is expanding into an area of the deposit that is a thicker portion of the ore body, and we expect wells in that area to be higher producing. So not all wells will be equal. We're still targeting 30 to 35 million pounds of production for this year and still have the goal of running the plant at capacity by the end of the year. And that's a run rate of about 7 million pounds per month capacity. Operating costs of Florence are generally tracking in line with plan with no big surprises so far. Florence generated positive operating margins and contributed roughly 10 million of EBITDA in the second quarter. We also reported a C1 cost of $4.72 US per pound, but it's still early in the ramp up and this is not indicative of where we will be in the future. A high portion of our site operating costs are fixed, and as the ramp up continues, those fixed costs will be spread over a much bigger production base, which will drive down the C1 cost significantly. Sulfuric acid is the largest component of Florence's cost structure. We have a fixed price contract for this year at $270 US per ton and that's a good price considering what's happened in the acid market recently. This fall we will be engaging with suppliers to establish next year's pricing and we can expect there will be some price escalation in 2027. But once ramped up, Florence's cost structure is so low that even with high acid prices we still expect very strong margins. Turning to Gibraltar now, which had another quarter of strong operating performance. The mine produced 30 million pounds of copper, which is the third consecutive quarter at that level. Grade recoveries and mill throughput have all been quite consistent over the last nine months, as ore release has been coming from the lower benches of the connector pit. We will be moving back into some of the more challenging ore later this year, which will impact recoveries, but still on track for our annual guidance of 110 to 115 million pounds. Gibraltar cathode production in the second quarter was a bit lower than expected as the SXEW plant experienced some electrical issues after the restart in late April. We believe those have been addressed now, so we should see a good step up in cathode production in the coming months, with improved plant performance and the second leach pad now running. Total site costs at Gibraltar were in line with the previous quarter as cost pressures continue in the area of fuel, explosives, and parts and equipment. Timing of repairs and maintenance activity was also a factor, as some mill maintenance activities were pulled forward into June. Offsetting some of the inflationary pressure is a strong molybdenum byproduct credit, and moly prices have been back over $30 per pound recently. Smelter treatment and refining costs also continue to trend lower. We've now contracted almost all of the 2027 tonnage, and we're seeing an average TC next year in the range of negative $140 a ton. That's an amazing rate that we've never seen before. And with our contracted terms for next year, we also expect to get paid for the gold content in Jib Concentrate, which is a small but further additional benefit. Sustaining capital expenditures at Gibraltar were about $48 million in the first half of 2026. That's higher than we've seen in the past, and we expect that elevated spending level to continue. The main driver of the increased spend has been implementing design changes at the tailings storage facility to better utilize the TSF's existing footprint and also for improvements to site water management. Lastly, a comment on our Yellowhead Copper project, our longer term development project. The permitting continues to steadily advance and we've had a few notable milestones recently. Last week, the BC EAO issued a positive readiness decision, and the project is now moving into the next stages of the EA process. The BC government recently highlighted Yellowhead as one of its priority projects, so we believe it's a supportive environment right now and will keep moving the project forward. There are very few corporate development projects of this scale in North America, and we continue to believe Yellowhead will be a very valuable asset for us. We're also continuing to work on other opportunities in our portfolio. In July, we were invited by the Chilcotin National Government into their community for a ceremony to recognize the new prosperity agreement that we signed a year ago. And that's a relationship that we continue to build on. For the Harmony Gold project, we just extended our option agreement with JDS. And at our Alley Niobium project, we continue to advance met work and product marketing initiatives, and we'll be able to share some additional updates on that work in the coming weeks. So there's lots happening and lots of opportunities to unlock value that are still in front of us. And I'll leave it at that for now and turn the call over to Bryce for his commentary on the financials.