Torex Gold Resources Inc.

Thank you for standing by. This is the conference operator. Welcome to TORX Gold's first quarter 2025 results conference call and webcast. 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 running a telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Dan Rowlands. Senior Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q1 2025 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.torexgold.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 two of today's presentation, as well as those included in the Q1 2025 MD&A. On the call today, we have Jody Kazenko, President and CEO, and Dave Stefanuto, Executive Vice President, Technical Services and Capital Projects, who are both in Mexico City, having just hosted the board on a site visit to Morelos. while Andrew Snowden, our CFO, is here with us in Toronto. 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 in the MD&A are posted on our website and have also been filed on CDAR+. All amounts in today's 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 from Mexico City here. The start of 2025 has been a period of significant milestones attained for TOREC, some of which are listed here on slide four. First, as you will have seen, last week we published our final quarterly update on the MediLuna project. Construction is essentially concluded. I'll let Dave speak in more detail on the items remaining, but the two largest are completion and commissioning of the PACE plant and the tie-in of our upgraded power infrastructure to the national grid. Both of these are tracking well and expect to be completed over the next few weeks. Second, and importantly, the time period is behind us. From mid-February to mid-March, we successfully completed this exercise as a process plan. All in, there were 83 separate tie-ins and 136 separate systems to commission. This required our entire team and more than 1,000 contractors to complete. This was done not only on schedule and within budget, but more importantly, without a single safety incident. Third, post the tie-in period, we produced our first concentrate and initial shipments left the site in early April. In parallel with construction, we maintained a major focus on people with our workforce transition plan, which is now also substantially complete. All in, we transitioned or recruited nearly 500 employees to operate in MediLuna Underground or support our new surface operations, while maintaining our usual high level of commitment to recruitment from our local communities. Then to wrap all of this up, we achieved commercial production at Medialuna on schedule on April 26th. Our ramp up is going according to plan with the mine and mill both operating above the required thresholds to make this declaration. And finally in quarter one, we also released our year end mineral reserve and resource update in March, delivering 7% reserve growth year over year. Turning to slide five, I wanted to briefly provide an update on the progress we've made across each of our six strategic pillars. On our first pillar, I just touched on the highlights from Medialuna, so I'll make some comments here on EPO. The feasibility study is progressing well, and we remain on track to commence underground development in quarter two, even ahead of the feasibility study being finalized. On optimized Morelos production and cost, We're now focused on completing and commissioning the PACE plant so we can achieve those steady state mining rates of 7,500 tons per day in Medelluna by mid-2026. In parallel, we have a number of initiatives in play on what I call Medelluna 2.0, how to operate the mine safer, faster, and cheaper. As Medelluna gains economies of scale and the teams get more and more comfortable with our new operations, I expect we'll see meaningful improvements in our cost structure over the coming quarter. On growth reserves and resources, we released our year-end reserve and resource update in the quarter. I'll touch more on the specific highlights on that before the end of the call. On disciplined growth and capital allocation, we continued to draw on our credit facility as planned during quarter one, given it was our highest tax and royalty payment quarter of the year, coupled with our lowest production quarter. Andrew will speak more on this shortly. In addition, with our MediLuna progressing the plan, we expect to be in a position to outline our inaugural return of capital policy to shareholders later this year. On retaining the track talent, I want to take this time to acknowledge our human resources, safety, and operational teams for successfully coordinating and training all of the employees that changed roles or onboarded during our workforce transition program. This was no small feat. And finally, on responsible mining, I'd like to take a bit of extended time here to talk about safety, given the events of December. I want to share some of the proactive measures we've taken since the conclusion of our internal investigation into the fatal carbon monoxide exposure that happened last year. We've embarked on what we're calling a next level safety program to ensure that we reestablish ourselves as industry leaders in safety, and that our operations can return to our prior fatality-free status. The program includes three specific work streams. First, refreshing the systemic work relating to fatal risk standards and critical controls with a view to increasing awareness for all of our workers and contractors on triggers that could result in a fatal event and the controls that must be in place prior to starting work and while work is being undertaken. Second, we've commissioned a fresh-eyed assessment where world experts will be at site at Morelos reviewing conditions, systems, and our culture in order to advise our management team and our board of directors about further opportunities for improvements on the continued journey to become one of the safest operations in the industry. And finally, we plan to undertake a series of in-depth dialogue sessions with all employees across our site and the corporate office where risk appetite is openly discussed, and personal commitments are publicly made about risk-taking behavior. Our work will never stop when it comes to ensuring that our employees and contractors return home safely after each shift, and we believe that taking these measures will be a great first step in getting us back on track to what was an industry-leading safety record. Moving over to slide six, I'll touch on some operational and financial highlights from the quarter on production, As expected, it was lower this quarter given the four-week time of the processing plan and the ramp-up post-restart. All of the sustaining costs were much better than we originally anticipated, as initial sales from MediLuna commenced in early April versus the original plan of late March. It just took us an extra couple of weeks to build up the required inventory of concentrate to get sales going. Because of that, higher-cost ore from the commissioning phase from the MediLuna mine will now be recognized in quarter two in conjunction with those sales. And finally, on balance sheet, we continue to draw on our debt facility during the quarter as planned. Notwithstanding the low production, the many of them spend and the significant annual tax outflows, we ended the quarter with nearly $200 million in available liquidity and $107 million of that sitting in cash. Slide 7 illustrates how our operations performed, with production on the top left and ore processed on the top right. Both of these graphs reflect the mill time period. The bottom left shows our grade profile for the quarters, which was lower than typical. This has nothing to do with Medioluna. It's because the open pits were winding down. This grade doesn't yet reflect the benefit of the meaningful volumes that we see coming of higher-grade Medioluna ore. Mining rates at ELG Underground, shown here on the bottom right, were light as we continue to recover from the events of December, and our contractor has some equipment availability issues. I'm pleased to see rates have picked up in late March, early April, and we're expecting to remain at our targeted 2,800 funds per day for the remainder of the year. Touching on guidance on slide eight, With the tie-ins now behind us, production is expected to pick up during quarter two as Medialuna steadily ramps up and recoveries achieve steady state levels during the fourth. We're expecting production levels to increase modestly again during quarter three and remain relatively stable from there on after. All in sustaining costs, we're at $14.05 per ounce for quarter one. and it's expected to peak above the upper end of the guided range in quarter two, for the reasons I've already described. Then we expect it to decline in the second half of the year as Medialuna ramps up, economies of scale are achieved, and production increases. We continue to expect to exit this year closer to the lower end of the guided range for ASIC. On capital, quarter one marks the final quarter of meaningful investment in Medialuna, as commercial production has now been declared. The remaining guidance for non-sustaining CAPEX reflects spend on the EPO feasibility study, which is currently underway, initial CAPEX to be spent on EPO development, which will commence here in quarter two, and a modest level of non-sustaining CAPEX for Medioluna while we complete commissioning of the PACE plan and the PACE distribution system. And on the note of CAPEX, I'll pass it over to Andrew to speak to our financial and more details.