Cerrado Gold Inc.

Good day, and thank you for standing by. Welcome to Serato's Goal Q4 and Year-End 2025 Financial and Production Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Mike McAllister, Vice President, Investor Relations. Please go ahead.

Good morning, and thank you, operator. I'd like to note that today's call may contain forward-looking information that is based on the company's current expectations, estimates, and beliefs. Please review this slide. and the other forward-looking information contained on page two of today's presentation, as well as in the company's annual information form, which is publicly available on CEDAR Plus and the company's website. The accompanying presentation for today's call is available for download from the company's website at www.sorotogold.com. The accompanying press release is also posted on the website and on CEDAR Plus. Please note that all dollar amounts mentioned on today's call are in U.S. dollars unless otherwise noted. Following management's presentation and remarks, a Q&A period will follow. Joining us on the call today are Mark Brennan, our CEO and chairman, Jason Brooks, our CFO, Cliff Hale-Saunders, our president, Ed Gamirez, our executive vice president, Andrew Kroll, our chief technical officer, Carl Calandra, our vice president and legal counsel, and David Ball, our vice president, corporate development. With that, I'd now like to turn the call over to our CEO, Mark Brennan.

Thanks, Mike, and I'd like to thank everyone for joining us today. I'd also particularly like to thank the Serato Financial team and our auditors at McGovern Hurley and Grant Thornton for the delivery of the year-end results a full month in advance of the statutory requirement. We've come a long way in the last two years on the financial reporting, and we're thrilled. 2025 has been a very successful transitional year for the company. Not only did we make a lot of money, leaving our treasury and financial position very strong, but we've also made significant investments into each of our three projects, setting the stage for future success and growth for 26 and beyond. Our EBITDA for 2025 was $46 million, with our closing balance of cash at over $22 million. This has grown materially in the first quarter, and our prospects for 2026 look significantly brighter with gold trading at the $4,600 level. The results achieved in the fourth quarter and for the full year demonstrate Serato's ability to maintain production at our MDN operation with stable operating costs as we transition from solely heap-leach-driven production to production sourced from underground, the heap-leach, and existing low stockpiles. This process has continued throughout the first quarter of 2026, and we expect the underground to reach stable production levels in the latter part of 2020. Q2 of 2026. Not only was 2025 a success operationally, but organizationally, we have invested in people and systems to improve everything from cost control to reporting, which is, as stated above, we are very proud to say has enabled us to release our financial results one month ahead of schedule. With elevated gold prices, we continue to generate significant cash flows supporting our continued optimization and exploration efforts at MDM. which we expect will lead to an extension of the mine life and increased production. We expect to see robust economic potential with the completion of the bankable feasibility study at Montserrat, targeted for the Q2 this year. And we continue the development process at the Lagoa Salgada project, while at the same time reducing debt and building a strong cash position, improving Serato's overall financial strength. Following robust levels of adjusted EBITDA in the fourth quarter of 2025, We continue to see strong cash generation into this quarter and throughout the year, especially now that the majority of our growth CapEx programs are nearing completion and the prior hedging program we had in place has been completed. Looking forward to 2026, operations at MDN are performing exceptionally well and we are benefiting from continued strong gold prices providing strong margins, leaving us to expect that the year will be another strong year for Serato. We are providing Our 2026 production guidance is 50,000 to 60,000 ounces, geo ounces, with an ASIC of $1,800 to $2,000, with production weighted towards the second half of the year when the underground is expected to reach expected capacity. Our focus for the coming year will continue to be on developing MDN, extending my life, increasing production, and continuing to develop future cash generation by completing the feasibility studies that both are development projects in Portugal and Quebec with limited dilution. I'd now like to turn the call over to Jason Brooks to take us through the financial highlights.

Thanks, Mark. And turning to slide three. In 2025, the company produced 50,238 gold equivalent ounces, with 13,806 gold equivalent ounces produced in the fourth quarter. Operational results for the full year 2025 showed stable production relative to the previous year. 2025 was a transitional year as the company shifted to rely on production from the heat bleach operations at Calandrias, while the underground continued to ramp up towards the end of the year. Production rates would have been higher. However, the heat bleach pad was irrigated less than usual due to water availability constraints caused by very dry summer conditions late in the year. The oil and sustaining costs for the full year came in at 1,746 per ounce, with Q4 all-in sustaining costs of $1,391 per ounce, which was a result of the higher production in the fourth quarter. The company continued to focus on operating costs. Sorry, excuse me. The company's continued focus on operating costs enabled all-in sustaining costs to remain at relatively low levels despite inflationary pressures and higher water purchase costs in Q4. In 2026, the company is guiding gold equivalent ounce production between 50 and 60,000 ounces as the heap leach operation stabilizes at higher levels and more ounces come in from the underground this year. We expect that all sustaining costs will continue to moderate due to a reduction in water purchases and higher feed grades from the underground. Production rates are skewed higher in the second half of 2026 due to mine sequencing. as more underground ore is expected to be available in the second half of the year. In 2025, driven by stable operating costs and much higher gold prices, the company generated adjusted EBITDA of $46 million for the full year and $22 million in the fourth quarter. Going into 2026, Serato's production will be unhedged, allowing MDN operations to reap the benefits of the completion of its recent expansionary capital expenditure program to grow production through its new heap leach operations, as well as the availability of additional high-grade ore from underground operations. With the hedging program completed in 2025, Serato is now substantially exposed to record gold prices. Additional investment plan for 2026, including an expanded heap leach pad, a new tailings area, additional fleet enhancements, and ongoing exploration activities is positioning MDN for long-term success. Finally, the company finished the year with over $22 million in cash. Moving into 2026, given the current gold price environment, the company expects to continue improving its cash position above and beyond capital allocated to project growth plans. With that, I would now like to return the call back to Mark Brennan and take us through some production highlights and outlook for 2026.

Thanks, Jason. Turning to slide four, as we progress through 2026, we have a strong exploration program in place. We are targeting a surface exploration program of approximately 50,000 meters that does not include underground exploration. To accomplish this, we have acquired three owner-operated rigs. We now have three diamond rigs and one RC rig turning as we speak with the initial results continuing to be encouraging. While drilling performance is now on target, we continue to see some delays with assay results. We are in the process of certifying our internal lab to shorten turnaround times and improve exploration performance and targeting. We will be releasing results to the market when we can demonstrate critical mass and new ore bodies. Cerato's target is to expand the current mine life to at least six plus years and grow production. We also plan to have a fifth drill arriving in August that will focus on exploration at the Paloma Underground site, which is open at depth and a long strike, where exploration success has the potential to increase grade to the mill and potentially materially boost production rates. As we progress into 2026, our focus remains on ramping up underground production during the second and third quarters. And as water availability returns as we enter the rainy season, heap leach production levels should recover to nameplate capacity and contribute to lower costs. We also have extensive operational optimization programs underway at MDN. As these programs are completed, we expect it will result in reduced unit costs and expanded production capabilities. As previously mentioned, 2025 was a very successful transition year for the company with significant investments made to advance our projects and set the company up for future mineral resource and production growth at MDN and advance our development projects with optimized feasibility studies and a production decision at Lagoa Salgada in Portugal expected in Q3. As previously announced in early 26, we are working with various government agencies in Portugal to resolve the current impasse with respect to the granting of the environmental impact approval given that Serato received a notice that the Portuguese Environmental Agency had purported to issue an unfavorable opinion for the Lagoa Salgada project contrary to what we believe is contrary to applicable laws and regulatory framework. We expect to be in a position to provide greater detail in the coming weeks as to the resolution of this matter. Also, at Montsourcier in Quebec, we are nearing completion of our feasibility study expected by the end of Q2 26. and the submission of the environmental impact assessment by year end. In 2026, we completed just under 18,000 meters of drilling to support upgrading the resources to reserves. As highlighted in Q4, the project is set to be developed into a phase 8 million ton per annum project, producing over 67% high-grade, high-purity iron ore concentrates in two phases of 4 million tons per annum. This should also lead to more optimal phasing of capital costs where we are seeing some upward pressure. The market for high-grade iron constraints remains robust with a significant premium seen in the market for Montsercy's high-grade, high-purity material, which we anticipate will translate into strong support for the project in the global iron ore market. We continue to see that a strong value proposition for Cerato remains in place. With significant cash flow growth, and minimal shareholder dilution needed as we advance all three projects targeting higher cash flow and production rates. We continue to believe our shares are trading at a material discount to our peers and anticipate we can close this gap as we continue to deliver on production, cash flows, and project development. This concludes the present portion of the call. I will now turn the call back to Lisa to open the call for the Q&A portion of the call.

Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. You will hear that automated message advising your hand is raised. If you would like to remove yourself from the queue, press star 11 again. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. Our first question will be coming from the line of Rod Stewart of Red Cloud Securities. Your line is open.

Good morning, Mark. Good morning, everyone. Congrats on getting the news out. Mark, I might have missed it, but do you have guidance of sustaining capital, development capital, and exploration spending for 26th?

We dropped again.

I'm sorry, did you get my question?

We just dropped.

Could you please repeat that question one more time?

Yeah, no worries. Do you have guidance on sustaining capital, development capital, and exploration spending for 26?

We'd be using an all-in-sustaining cost guidance of $1,800 to $2,000 per ounce. And basically, we're targeting 50,000 meters of surface drilling per With additional underground drilling, we have ordered an underground rig that should be delivered July, August. It's a very difficult time to find rigs right now that are for underground exploration, but we'll have it in sight by July, August. We expect that we could see an additional 10,000, 20,000 meters of drilling underground.

No, I've got that. I was wondering whether or not you provided guidance as to the costing and whether or not the drilling is going to be capitalized or expensed.

The drilling for underground will probably be capitalized. And in terms of guidance of cost, if you're looking for a guidance on, we're probably looking at around, because they're our own rigs, they'll probably be around $250 a meter.

Okay.

Does that answer your question?

And the total development capital, the total capital spending that you're anticipating for advancing the projects?

Oh, excuse me. We're spending approximately $30 million of CapEx at MDM this year.

Okay. Okay. Thank you. Thank you, Ron.

Thank you. One moment for the next question. Our next question will be coming from the line of Hioki Heilig. from HC Wainwright. Your line is open.

Excuse me. Hey, everybody. It's Heiko Ehle from HC Wainwright. Two things. With the water availability at the MDN, first of all, what have you seen recently? And second of all, how should we think of this going forward? Is there presumably more variability going forward Or should we really just look at this as getting better with time?

Are you speaking specifically on the second point, Heiko, to the water or in general?

I thought with just the water, but if you want to answer both, by all means, go ahead.

Yeah, I guess for the 25, 26 summer months in Argentina, we've had a particularly dry season. And Combined with that, we also saw one of our water wells had depleted. So our usual capacity requirement is about 45 cubic meters. And basically, we were having to bring in, with the dry weather that we experienced, we were having to bring in about 60 trucks a day to provide water in order to continue the operations. Now, this had an impact as highlighted on the heap leach irrigation and therefore production. And what we're finding now is that we, and that was costing, excuse me, about $850,000 a month for that water. I'm very pleased to say that on the water reservoir perspective, we've actually drilled a hole, a borehole that has basically about 30 cubic meters which fulfills 70% of our production requirement. And then on top of that, we're also moving into the rainy season starting in April, late April, and so we're expecting that we're not gonna have the same issues. So our water costs have dropped down to about $250,000 a month from $850,000 a month. But again, this was a fairly unusual and unique dry season I guess summer that we've had, that we've experienced. And from that regard, we're obviously being very careful with what and looking forward to what's potentially in the fall of 26. But we're hopeful that we won't have a repeat of the dry season that we've experienced. So that kind of puts in place the water situation. And we are looking at other ways to, we are looking for other water, reservoirs that we can tap for all of our water needs. And then as it relates to the project in general, I think what you've seen at the site, and when we mentioned that last year was a transitional year, it really took us away from fighting our way through deposits, and we've now really come much more into a management of the asset perspective. as opposed to continually driving projects that had to continue our sustainability. So I'm seeing much more efficiencies, much more attention to long-term value add, like increasing our fleets, one, increasing the fleet, two, increasing the loaders, and then the trucks that are transporting from 30 tons to 45 tons. So we're seeing operational advantages that we're implementing now that'll have long-term implications. So I fully expect that we'll continue to see, as the second half rolls on, we'll continue to see lower costs. And again, our objective with our drill program, with our corporate development, is that we will continue to see resource growth and potential for expansion of life of mine and production levels.

That was comprehensive. Thank you. I have a feeling the next one is a little bit more touchy-feely. I'm trying to figure out how we should handicap Lagoa. I mean, if you were in my shoes, and you know what the analyst community goes through, Mark, how should we handicap this thing, model this thing? If you were in my shoes, what would you do?

I would say this. The I think that, as mentioned in the core of the discussion, we're very confident in our case and that we feel that there's been irregularities in process and timing and in conclusions that were not regular. And so we're hopeful, Heiko, that within a period of two months, Certainly by the end of the quarter, we're hopeful we'll have a resolution that's satisfactory to all parties. And that's being accommodated with the intervention of the Portuguese government who are dealing with Lagoa and Cerrado and dealing with APA, the regulatory agency on the other hand. So there's negotiations, discussions going on. again, we're hopeful that there'll be a resolution within the next two, three months. I guess in terms of how do you handicap this, that's a tough one. And the reality is that, you know, what I would perhaps, you know, to a certain extent, I would defer the decision if you can until the end of the second quarter. But in the absence that you can't, I mean, I think you determine what know whether you you you know whether you you know you you handicap it you know 20 to 80 20 80 that really is going to be on your perspective of risk but what i would say um is that you know when i look at the valuation for serato right now forget about portugal or or even quebec for that matter um we stand on our own uh in terms of our value proposition with MDN on its own. So I can't imagine or I don't believe that LAGOA should have the impact with respect to the potential that we see for MDN in the coming few months. I wish I could give you something more definitive, but it really is going to depend on your with your risk tolerance and how you feel that people should, you know, how people pursue it. I mean, our internal view is that we're still looking to enter into the construction phase in the first quarter of next year.

Okay. Fair enough. I will get back to you. Thanks for the two comprehensive answers still, my friend.

Thank you.

I really appreciate it.

Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. One moment for the next question. And our next question will be coming from the line of Colin McClellan of the Northern Minor. Your line is open.

Good morning. Thanks for taking a question. Most of it's been answered. I was interested about Lagoa. It appears like you guys were blindsided on the water issue. I just wondered what happened there. You were surprised. How come you didn't know there was an issue with it?

Well, technically there wasn't. What's very unique, and when we speak of irregularities, in May we were informed by the APA that of their technical evaluation committee, we had the first project in the history of Portugal that had unanimity with its evaluation of 17 strong divisions that look after the technical evaluation for APA. Again, that we had unanimity with all members of the 17 Strong Committee approving the project. Now, at that time, we also were considering looking at leaching our precious metals, so we had a small component of cyanide usage, which the president of APA did not want us to proceed with, which we we kind of understood, but even at that stage in May of last year, we had already moved to flotation of the precious metals and we're not going to use cyanide anyway. In their second point that they made to us in May was that they wanted us to enhance the protection of the aquifer, but only the aquifer that was being utilized by the local community. In our instance, there's three aquifers. There's one aquifer at say 10 meters, which is used for the agricultural community. If there's rain, they use it. If there's no rain, they don't get it. At a depth of 35 meters is the main aquifer that's used by the local community. And that aquifer is what they asked us in May to continue to protect. In the third aquifer, which is actually where we're drawing our water from, is already contaminated by sulfides and acid drainage. And so that can't be used by the agricultural community. It cannot be used by the local community. And so we never had any problems or no issues commented to us in May about the deeper aquifer. When they came back with the decision in January, they did not refer to the two upper aquifers. They only referred to the deeper aquifer, which they had never suggested any issues with in the past. Now, I'll mention that I believe, Colin, that we have probably one of the most sophisticated hydrological studies conducted in Portuguese history. And the reason for that is that we have an expert in Spain who's renowned as one of the leading experts on water resource, mining water resource management. He actually runs the International Mining Resource Water Agency. And the fact is that we have very comprehensive layout and plans as it relates to all three aquifers. When they gave us the final decision, which related to only the deepest aquifer, first of all, that was a contravention of permissible questions allowed under the rule of law. And second of all, They didn't give us an opportunity to respond to their question with respect to the deeper aquifer. And basically, we had our fellow in Spain provide a 120-page response to their question, which, again, we feel sufficiently answered any questions that they may have or any issues that they may have. And they did not even take the time to review that response before they gave us the negative opinion. So it's our strong belief that there have been irregularities, not only in the timing but also in the process, as well as the technical evaluation of the project. And we think that they're quite evident. And as a consequence, we're hopeful that we will have a positive forward dialogue with the Portuguese government and the development of Lagoa Salgada moving forward.

Okay, just a quick follow-up. One of the mayors over there seems to be jumping up and down a bit about it. You guys are trying to persuade him or talk to him about the issues?

Well, what's very interesting is we had a very positive relationship with that mayor up until the last election. And obviously, as you can imagine, a mining project in anybody's backyard will arise with high controversy. The funny thing is that with this particular mayor, we had a tremendously strong relationship with him. And what was interesting is that up until the inauguration date, let's say, which I believe was in September, and let's say it was the 15th of September, which is a Saturday, there was an official and formal inauguration, which we were invited to, which we participated in, which we were kind of vetted, I guess, for lack of a better word. Then at that Saturday, there was a meeting set up for the following Friday, and at that point, the mayor went dark, and he went on a totally different course than he had had with us. We had a phenomenal, we had a Just so you know, we have had a phenomenal, over the course of the past eight years, we have had a phenomenal relationship with the local community, with the federal community, and we have never had any injunctions, we've never had any issues with any of the local community until this mayor, frankly, had a totally 180-degree change in his perspective, which we don't understand. We're still trying to understand how that perspective came about and why that perspective came about. You know, we know that there's a real estate community called Comporta that they're developing two golf courses and very luxurious homes. And, you know, perhaps we're an inconvenience to that development. But, again, we would say that there are high irregularities in the whole process here.

Right. How far is that luxury development away from you guys?

Well, in terms of distance, it's about 35 kilometers. So really, we don't feel it should have any impact, although it is still within the Grandola jurisdiction. And second of all, probably more importantly, is that the project is almost completed as a selling process. And so once that sales process is completed, my guess is that people are going to change their tune on Lagoa fairly considerably.

Great. Thanks very much.

Thank you, Colin. Appreciate the question.

Thank you. And at this time, there are no more questions in the queue, and I'd like to turn the call back over to Mike. Please go ahead, Mike.

Thank you, operator. We're just going to check the webcast just to see if there's any questions that have come in through that. And we do have a few here. The first one is from Matt Crave. He's asking when if we anticipate any release of the drilling results at MDM.

We're proceeding with the drilling, and we've had some very interesting progress there. We have two areas that look highly prospective, and we're drilling with the area called Sapporo S, which is just east of the just east and south of the Paloma underground pit. And then on top of that, we're also looking at an area in the southern zone called Baratina and Chilungo, which looks very interesting as well. Now, the issue that we have in terms of producing and publishing results is that what we need to do there is to really end up with, have a density of drilling that we can actually come out with what we would consider to be resource worthy kind of size. And that's really what we're looking to put out. So I would say that by mid-year, we'll be able to come out with hopefully some greater progress and discussion on that, certainly before mid-year. But also, we are looking and we are looking to to be able to, within that timeframe, to also provide evidence to the market that we can expand our life of mine and look to potentially double that life of mine. And that's something we're still focusing on in the mid-term, short-term as well.

And then we also have one other follow-up question from Matt regarding the company's buyback. He's asking if the company bought back, and if so, how many shares during the quarter?

Yeah, we bought a total in our buyback of 380,000 shares or just under 400,000 shares of a total buyback of 6.4 million. Our treasury is building up very nicely and we're buying shares on a daily basis. However, what we're kind of contemplating, we're waiting for is to see if the markets have any significant sell-off and looking at that as potentially an opportunity to come in and buy larger bulk of shares. I mean, we tend to think that the hostilities in the Middle East are probably going to continue a little more than people were looking for as of yesterday. Today, it's a different day. But we think that there's still probably some capitulation in the markets and potential for capitulation in the market, and we think we can use that as an opportunity to buy our shares at that time.

And then just one follow-up question. He's asking, in terms of, Tim Trombley is asking, will you receive any funding or grants from the Canadian government for the development of the Montessori project?

I think it's an avenue we could pursue, but as we really tried to highlight to people, we don't need the money from the Canadian government. And one of our strongest positions here is that we have the support of UCAP, which is the UK Export Credit Agency, and we believe in conjunction with another development agency that we'll be able to fund this project to the tune of about 70%. And then on top of that, we believe that the other two remaining sources of funding, which would make up the 30%, We believe offtake and a potential stream could help us a long way towards completing that. And then by 28, when we anticipate being in construction, we believe we'll have a cash position that can furnish the balance. So in terms of our mantra, as you guys are well aware, as per the same response for Portugal, we really believe that there's a strong possibility that we can develop these three projects from our own cash flows as well as through means which are non-dilutive and predominantly through off-taker agreements or potential streams, although we know the long-term cost of streams. Again, we're building a very strong cash position. We're seeing that expand. With Lagoa potentially coming on stream in 2028, that would put us in a position where If I'm looking at today's market, we're probably generating a couple hundred million dollars of cash flow. So we're really building up some momentum here that I think we'll be able to sustain and grow these projects without the requirement for dilution.

Great. Then one other one. The company has stated that the production is back-end loaded in the year. How many ounces do you expect will come from the underground in the latter half of the year and estimate on that grade of those ounces?

My guesstimate would be that we're looking at something in the region of about 1,000 ounces a month or so. Now, remember, the purpose of the underground development was not to go and – we have a plan where we see about – we published a PEA that basically had a 30,000-ounce resource underground. I believe that the objective that we have is not to really go underground to produce the existing resources that we have. It really is to go underground and start drilling aggressively to grow the resources And that's what we've seen at our neighbors at Cerro Moro, at Cerro Vanguardia, Cerro Negro. Really underground is where you start to see the rubber hit the road. For the most part on the Massif, you tend to see fairly vein structures that are dispersed, that they're small. but multiple, but there are a very large number of them. The fact is that as you move underground, you tend to find vein structures that are more complete and larger, and that's what we're anticipating that we'll see, but we really need to go down there and drill aggressively, which we'll do as soon as we receive the rig, which will be in July or August. So, you know, it leads to the question that with a little bit of success, and our average grade that we're contemplating is about five grams in our budget, five grams per ton. When we were mining the Paloma pit above the underground, we were averaging around seven to eight grams. So I think that the potential here is that we can see with any success with the drilling, with the surface drilling, the underground, we can really see our production expand fairly dramatically, and we have all the infrastructure in place to develop it. It really is just resource management that we need to develop and expand the expansion of the resources, which we're obviously focusing on now for the first time in our history of being at the mine. So we're very optimistic that At some point, the shoe will drop. We're just not sure when that will be.

Oh, a question from Stigen Smith. He's mentioning that we have mentioned limited deletion multiple times. What deletion do we foresee, or could we advance these projects with no deletion?

My preference would be for no deletion, obviously, but, you know, one has to consider the variabilities of market conditions The mining sector, as we all know, is a very volatile space. What we're seeing now, for example, in Portugal, just to give you a little bit of color on our position with funding of Lagos Algada, is basically we have, again, the support of the UK Export Credit Agency for 70% project funding. Let's call it, for example, a $200 million project. So, if we're looking at $140M coming from UKEF and Santander Bank, who are working with UKEF, basically the $60M that we require, due to the fact that Boliden has acquired Nevis Corvo and the large number of the trading groups, and even Boliden for that matter, are looking for more ore to go into their smelters. we believe that the dynamic, current dynamic, is that we can use traders to actually help us fund the development of the balance of the capital required. So therefore, I think there's a strong belief that we have that we could fund that project with third-party money. If we need to put in a little bit of capital, we'll be more than strong enough in our own cash position to actually supply that capital ourselves. That means we're not contemplating substantial dilution. If we look at a much bigger capital program in Quebec, we believe the same is true. We may have to rely a little bit on a stream if necessary, but we believe through project funding, offtake and our own cash position, we should be able to cover the majority of the funding required. So I can't make the promise we won't dilute, and that's why we don't say we will never dilute, but our hope is that that'll be the ultimate end point.

Great. And then just one last question regarding recoveries for the heat bleaching. They noticed 32% for the year. Is that what we expect going forward, or could we expect increased recovery from the heat bleach?

I mean, it really depends if whether you're producing the sulfides or the oxides. You correctly highlight that we've been producing from the sulfides, and so the recoveries have been a little bit lower than normal, than what we anticipate. I would expect that those recoveries will improve as we move into other areas. But I would expect for the sulfides, we're probably running 35%, 40% recoveries, and then for the oxides, we're probably closer to 60%. But obviously the oxides are probably running lower grade than what we see in the sulfides.

Great. There's no more questions from the webcast portion of the call. So I'll now turn the call back over to Mark Brenner just for any closing comments.

Well, thank you everyone who joined us today. As a reminder, the recording of this call along with the presentation will be available on the company's website at seratogold.com. For any follow-up questions or concerns, you can find our contact details on our website. And thank you very much for your support, interest, and following the Serato story. With that, operator, thank you very much. I think that concludes our call.

Thank you. This does conclude today's program. You may all disconnect.