Torex Gold Resources Inc.

Good morning and welcome to the Torex Gold's third quarter 2024 conference call and webcast. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on the touchstone phone. To withdraw your question, please press star, then two. Please note that this event is being recorded. I will now pass the call over to Dan Rollins, Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. On behalf of the Taurus team, welcome to our Q3 2024 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.torusgold.com. I would 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 the page two of today's presentation, as well as those included in the Q3 2024 MD&A. On the call today, we have Jody Kozenko, President and CEO, Andrew Snowden, CFO, as well as Dave Stepanudo, Executive Vice President, Technical Services and Capital Project. 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 also been filed on CDAR+. 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. Q3 was another consistent quarter of strong operational results, backed by yet another record quarterly average realized gold price, which in turn fueled record revenue. We are solidly placed to deliver production guidance for the sixth year in a row. Costs are trending downwards quarter over quarter as expected, yet still tracking to be at the top end of guidance for the year, primarily due to higher royalties and profit sharing that come along with the strong gold price. Our liquidity position has not changed quarter over quarter. This is notable. This is a result of the strong cash flow from ELG essentially funding the entirety of the $114 million of capital that was spent through the quarter on Medialuna. This is a testament to the free cash flowing capability of the asset that further bolsters our expectation that we will return to positive free cash flow by mid-next year. Starting with an update across our strategic pillars, which are shown here on slide four. As you will have seen in the update last week, the MediLuna project is now 87% complete across engineering, procurement, underground development and construction, and surface construction. We announced that we rescheduled the time period to February 2025, given the timing of the delivery of the switch year and our associated state of readiness to take the time and period. While we all want the project done, the overriding business priority has always been to keep the tie-in period to no longer than four weeks. Whether it happened in 2004 or 2001 was much less of a concern, given the contingency production buffer we developed with the OpenTIT pushback. The revised tie-in schedule will boost production in 2024 and support de-risking the commissioning period by allowing us to test key process equipment, like the VSD ball mill motors, ahead of the tie-in period during our regularly scheduled December maintenance period at the plant. This also comes with the further benefit of potentially reducing the tie-in period to less than four weeks and allows us to continue to build stockpiles ahead of commissioning, given the rescheduling has no impact on mine production from Medialuna. Dave, when he gets into his commentary, will provide more details on the project. On the next pillar of our strategy of Integrate and Optimize Morelos, we released the results of an internal pre-feasibility study on EPO in September, which, on the reserve case alone, demonstrates the ability to maintain annual gold equivalent production of at least 450,000 ounces through 2030, with the scenario taking into account potential resource conversion, indicating a clear potential to maintain this run rate through at least 2033. Our goal was to fill the mill for 10 years, and we're getting very, very close. On disciplined growth and capital allocation, due to the strong margins and ongoing cash flow from ELG, funding for the MediLuna build is well in hand, and we have more than ample liquidity to finance the remainder of the build and support our strategic objective of maintaining $100 million of cash on the balance sheet. Andrew will provide more detail on our financial position shortly. On grow reserves and resources, drilling activity has picked up since the first half of the year, and we expect to have several press releases out over the next couple of months discussing the results of this drilling at both EPO and ELG Underground. On talent, recruitment of personnel for MediLuna is progressing well, with 55% of our MediLuna workforce transferred from previous ELG operations. The transition training program now stands at 40% complete and will ramp up even further as open pit production continues to wind down. And finally, on ESG, although it occurred at the quarter end, I want to use this call to acknowledge our team at SICE for being awarded the Silver Hard Hat from the Mexico Mining Chamber for the safest mine in Mexico in 2023 in the category of open pit mining with more than 500 workers. This award speaks to the worldwide safety culture we've built at Torex. For me and my entire executive team, there's nothing more important than the safety of our employees and contractors, and a heartfelt congratulations goes out to the entire team in Mexico for this accomplishment. Turning to specific quarter highlights on slide five, with production of 119,000 ounces in the quarter and nearly 350,000 ounces year-to-date, we're well on pace to achieve the new annual guidance. Cash costs of $926 per ounce and always sustainable costs of just over $1,100 per ounce are both down by approximately $100 per ounce compared to the prior quarter. Driven by slightly higher process rates and the lower strip ratio of the open pits, partially offset by further gains in the gold price as well as ongoing elevated cyanide consumption. While the gold price has put pressure on royalties and profit sharing, The record gold price has allowed us to generate robust margins, and that plus our cost discipline has given us an ASIC margin of 52% during quarter three. Record quarterly revenue of $314 million helped drive robust EBITDA and cash flow, placing us on solid financial footing to finish Medialuna with only a modest level of net debt, which we will repay quickly next year as we return to strong free cash flow by the middle of the year. Over to slide six, this just speaks to the operational consistency at ELG. Production this quarter was delivered by slightly higher grades and recoveries than quarter two. The top white chart clearly illustrates the reliability of the mill, which had yet another quarter of processing in the 13,000 tons per day range. The bottom left chart shows the gradual increase in grades we've seen quarter over quarter this year, while the bottom right chart demonstrates that ELG underground mine rates are delivering the expected steady state of 2,000 tons per day. Moving to slide seven, this is a snapshot of how we're tracking against our annual guidance. Our 2024 guidance remains intact, with the exception of the increase to annual production guidance because of that four weeks of additional production with the time period rescheduled. School's only production guidance has been increased to 450 to 470,000 ounces compared to the previous guidance of 4 to 450. As noted earlier, we expect to end the year at the upper end of the guided range on total cash costs and all in sustaining costs. And I'll turn the call over to Andrew. He can give more details on that.