Torex Gold Resources Inc.

Thank you for standing by. This is the conference operator. Welcome to the Torex Gold Resources, Inc. Second Quarter 2023 Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead, Mr. Rollins.

Thank you, operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q2 2023 conference call. Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the investor section of our website at www.torixgold.com. I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page 2 of today's presentation, as well as those included in the Q2 2023 MD&A. On the call today, we have Jody Kazenko, President and CEO, Andrew Snowden, CFO, as well as Dave Stefanuto, Executive Vice President, Technical Services and Capital Projects. Following the presentation, Jody, Andrew, and Dave will be available for the question and answer period. This conference call is being webcast and will be available for replay on our website. Last night's press release and the accompanying financial statements and MD&A are posted on our website and have been filed on CDAR. Also note that all amounts mentioned in this call are U.S. dollars unless otherwise stated. I'll now turn the call over to Jody.

Thank you, Dan, and good morning to all on the line. Welcome to the Torex Gold Q2 2023 results call. I'll open my remarks by saying that we're at the halfway mark in the year and we're where we want it to be. Opening highlights include first, production is tracking nicely to the midpoint of the guided range. Second, development of Medialuna is on schedule and on budget, with 18 months left to go in the project build. And third, exploration drilling continues to demonstrate the potential for reserve and resource growth on both sides of the Balsas River. In terms of the agenda for the call, it will be the same as usual. I'll provide a brief reminder of the strategic pillars that continue to frame our execution plans. Then I'll step you through the key business and operational highlights specific to the second quarter. Then over to Andrew, who will provide a review of the financial results. Then Dave will provide a progress update on Medialuna. I'll then make some closing remarks and hand the call over to the operator for the question and answer period. Starting here on slide four, a quick review of our strategic pillars that set out the five key areas of focus as we make our way through 2023. On optimize and extend ELG, the recently released drill results from the ELG underground highlight the potential to replace reserves again in 2023, while also growing resources across multiple deposits, which bodes well for the future reserve growth and our plans to fill the mill post-2027. In addition to future considerations, if we look at today's performance, we've been successful in increasing mining rates in the ELG underground, setting yet another quarterly production record with Q2 performance. On de-risk and advanced MediLuna, the project is tracking to schedule and budget. We passed the 4.5-kilometer mark in the Wahez Tunnel and executed purchase orders for the entirety of the underground mining fleet. Additionally, we recently awarded the contract for the underground construction and vertical development scopes. This contractor is now mobilizing to site. On grow reserves and resources, our 2023 exploration and drilling program is tracking nicely to plan, and we expect to release the first set of infill and step-out drilling results from EPO in the coming weeks. We're excited about the potential to develop yet another mining front at EPO, which will also support our plans to fill the mill with higher grade feed beyond 2027. On prudent capital management, we remain in a solid position to fund the development of Medialuna, as at the end of the quarter, we had $606 million left to spend on the project against available liquidity of $527 million. And lastly, on ESG excellence, in May, we published our eighth annual responsible gold mining report, outlining the excellent work accomplished in 2022 on matters of safety, environment, community, and climate. Turning now to slide five, we produced over 107,000 ounces in the quarter, placing us at 230,000 ounces through the first half of the year. So we're in a solid position to achieve full-year production guidance, and if and as we do that, it will be the fifth year running. The lower production quarter over quarter was expected and reflects where we are in the sequencing of our pits. With the depletion of the Wahez pit in May and the ongoing focus on waste stripping at Alimont pit, we were processing a much greater proportion of lower-grade stockpile material in the quarter. The focus on waste stripping will continue through much of Q3 before ore production ramps back up in Q4. On financials, the impact of the stronger Mexican peso and focus on waste stripping is reflected in total and all-in sustaining cash costs, which were above the upper end of the guided range for the quarter. And the team is working hard to bring that into the guided range for full year. Cash flow from operations was $90 million. This includes $17 million of tax payments and the annual PTU payment of $30 million, PTU being the Mexican Legislative Employee Bonus. With spending of $77 million on the Medialuna project during the quarter, we closed Q2 with $285 million of cash on hand and available liquidity of $527 million. A note here on liquidity, our liquidity position will be enhanced over the coming days as we're in the final stages of amending our credit facilities, which will extend the maturity date of our facilities by one year to 2026 and increase the total boring capacity by an additional $50 million. The amendment was always part of our plan as we did not want to be overly focused on paying down debt in the same year we were ramping up production from Medialuna. Overall, the improved financial flexibility reflects, I think, the strength and confidence of our lenders in our underlying business. Turning now to some operational highlights on slide six. You can see there in the top left that shows the quarterly production I've already discussed. The dip there in Q2 should be read in conjunction with the graph on the bottom left on grade. You can see that process grade was down as a result of processing a greater portion of stockpiled materials given the sequencing of the open pits. The top right, and I don't want this to be overshadowed by the grade story, the processing plant team set a new quarterly milling record of 13,293 tons per day, driven by ongoing process improvement and maintenance practices. And finally, on the bottom right, you can see we also delivered another record quarter on the underground mining front. hitting more than 1,900 tons per day and closing in on our target rate of 2,000 tons per day by the end of 2024. Moving to slide seven, the overview of our annual guidance. We're well positioned for another successful year. On the production front, we're tracking towards the midpoint of the guided range, with quarterly production in the second half expected to mirror that of the first. Total cash costs and all-in sustaining costs are tracking towards the upper end of the guided ranges, given the focus on waste stripping and the stronger Mexican peso. Like production, we expect quarterly TCC and ASIC to mirror quarterly costs in H1. On the capital front, sustaining capital expenditures are on track for the full year. with capitalized stripping expected to remain elevated through much of Q3 before dropping off in Q4 as we move out of a period of higher stripping at Alimont. And finally, you can see here how we're tracking on Medialuna CapEx, with $144 million spent through the first half. While spending on Medialuna is expected to increase in H2, the lower level of spending in H1 has us tracking towards the lower end of the guided range. The lower spending is not expected to impact overall timeline, and any capital not incurred in 2023 will be incurred in 2024. Turning now to slide eight, we're excited about the success we're having at the ongoing drilling program at ELG Underground. We see potential here to extend the life of this mine well beyond the current reserve life of 2026. At Elie-Monsour Deep, it's the top right in the section view on the slide, Drilling returned multiple high-grade intercepts, including 88.9 grams per ton gold equivalent over 14.5 meters and 11.2 grams per ton gold equivalent over 29 meters. Those are pretty exciting. These two notable holes, in addition to what else we're seeing here, validates the high-grade nature of the feeders in this area of deposit, but also demonstrates the potential for ongoing resource growth at depth. At sub-sill south, drilling encountered mineralization down to the 400-meter elevation, which is 125 meters below the lowest resources at sub-sill and some 275 meters below ELD. In addition, follow-up drilling 100 meters to the west of Eliement sewer deep continues to highlight the potential for another new zone of underground mineralization. Clearly plenty of upside here, and we're very excited about the long-term prospects of ELG underground. Next up on the exploration front will be a release detailing initial results from the 2023 program at EPO. That's on the south side of the river, and it's focused on upgrading additional inferred resources to the indicated category and growing the overall size of the resource envelope. We expect to release these results in the coming weeks. Turning now to slide nine for a quick point on ESG. In May, we published our eighth annual Responsible Gold Mining Report, which details the great work our team does at site on community relations, environmental protection, and most importantly, safety, the safety of our employees and our rapidly expanding contractor base, with now over 1,200 people working on the MediLuna project. Our performance on safety is reflected on the bottom left of this slide. Our lost time injury frequency at quarter end remains at an industry-leading 0.58. I'll now turn the call over to Andrew to speak to the quarterly financial performance.