May 7th, 2026

The call conveyed a markedly positive operational and financial turnaround: the company achieved profitability, strengthened cash and gross profit, reduced dilution substantially by changing mining methods, and is investing meaningfully in development, exploration and processing upgrades. Strategic initiatives (Back Forty feasibility and the proposed Gold Group merger) target a material scale-up to >100,000 oz gold-equivalent production and an aggressive drilling program. Key challenges remain: AISC and cash costs are elevated though trending down, the quarter experienced production interruptions (union blockade and portal improvements), two LTIs were recorded, processing redundancy and equipment refurbishments are necessities, and several assets (e.g., San Francisco) require capital and restart work. On balance, the operational momentum, cash position, milestone profitability and growth strategy outweigh the near-term cost and operational risks.

Company Guidance

The call’s forward-looking guidance centered on building scale and accelerating near‑term production: management targets a pro forma run‑rate of greater than 100,000 gold‑equivalent ounces within 12 months and announced an active drilling program of “over 50,000 meters” (later clarified to roughly 70,000 m total — ~50,000 m exploration plus ~20,000 m infill, with ~24,000 m at Cerro Prieto, a similar amount at San Francisco and the balance at Don David). Asset assumptions cited include Don David ~50,000 oz/year current run‑rate, San Francisco ~50,000 oz/year (2020 PEA), and Cerro Prieto 20–30,000 oz/year; management expects San Francisco restart early Q1 2027, and forecasts the combined Gold Group contribution of roughly 70–80,000 oz/year at an AISC under $2,000 within ~12 months. Other near‑term operational targets include completing a definitive feasibility study for Back Forty in Q1 next year (then submitting permits and starting construction), increasing Alta Gracia from ~1,500 t/month now to 3,000 t/month in Q3 and ~5,000 t/month by year‑end (lifting mill throughput from ~30,000 t to ~35,000 t), installing the dry‑stack clear filter press next quarter and a third filter by Q3, while current unit metrics were reported at $2,164 cash cost/Gold‑eq oz and $3,476 AISC, and the company closed Q1 with $31M cash, nearly $44M net sales and net income of $4.7M ($0.03/share).