8/19/2026

speaker
Conference Operator
Operator

Thank you for standing by. This is the conference operator. Welcome to the Serato Gold Second Quarter 2026 Financial and Operational Results Webcast and Conference Call. As a reminder, all participants are in a 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 11 on your telephone, and you will hear an automated message. letting you know that your line is there. If you're on the webcast, you can enter your questions in the window and management will address the questions in the Q&A portion of the call. I would now like to turn the conference over to Mike McAllister, Vice President, Investor Relations. Sir, please go ahead.

speaker
Mike McAllister
Vice President, Investor Relations

Thank you, operator. Good morning, everyone. Turning to page two of the presentation, 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 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 CDARplus and the company's website. The accompanying presentation for today's call is available for download from the company's website at www.seratogold.com. The accompanying press release is also posted on our website and on Cedar Plus. Please note that all dollar amounts mentioned on today's call are in U.S. dollars unless otherwise noted. Joining me on the call today are Mark Brennan, our CEO and Chairman, Jason Brooks, our CFO, Cliff Hale-Sanders, our President, Edgar Marais, our Executive Vice President, Andrew Croal, our Chief Technical Officer, and David Ball, our Vice President, Corporate Development. With that, I'd now like to turn the call over to Mark Brennan. Thanks, Mike.

speaker
Mark Brennan
Chief Executive Officer and Chairman

I'd like to thank everyone for joining us today. We're very pleased with our continued operational performance and where the company is at today. Our positive Q2 results continue a trend of increased production and cash flow. We are confident that we will continue to see strong operational and financial performance at MDN given the improvements and initiatives recently completed are currently underway across our operations. We are also pleased by the benefits of sustained higher gold prices and our unhedged gold position. Furthermore, strong cash flow from operations continues to strengthen our financial position as we realize the benefits of our cost-cutting initiatives despite significant wage inflation in Argentina. We are also strategically deploying capital for exploration, development to lower-cost production, and to drive our project pipeline to grow production while sustaining a healthy mine life. Encouragingly, our full-year production appears increasingly likely to come in at a higher end of guidance as we continue to see strong month-over-month production. The long-term future potential NMDM has been strengthened by the Falcon acquisition combined with additional success with the 50,000-meter surface and 20,000-meter underground exploration programs which are currently underway. Results from these initiatives will be included in an upcoming updated PEA or preliminary economic assessment and mineral resource update in Q1 2027 where we hope to demonstrate our ability to extend the life of mine while fostering increased production levels. Looking to our other projects, we continue to advance the updated optimized feasibility study at Lagoa Salgada and are driving it in tandem with the process of the permitting process. We hope to be in a position to provide greater detail of our plans over the next few months. At Montsourcier, we have elected to delay the feasibility study until 2027 in order to allow us to complete additional drilling and trade-off studies to further optimize project economics. We are confident that the result will be a robust project, but we have seen inflationary pressure since we completed our PEA. Progress on both projects continues to strengthen our belief that there remains significant value to be unlocked. I'd now like to turn the call over to Jason Brooks to take us through the financial highlights for the second quarter.

Disclaimer

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Investor presentation