April 15th, 2026

The call presented multiple clear operational and financial achievements: record quarterly production, record realized prices, strong revenue, high gross margin (62%), healthy adjusted EBITDA (> $20M for the quarter and annualized > $80M), robust cash and working capital, a sizeable ROM stockpile, an active and prioritized exploration program, and a funded expansion plan with procurement underway. Key near-term headwinds include elevated processing reagent costs (being addressed by an oxygen plant), supply‑chain and construction timing risk for the planned mill expansion, deferral of the main underground plan driven by pit deepening, and ongoing government/JV negotiation uncertainty. Management reiterated guidance, confirmed the capital structure is clean, and emphasized funding expansion from cash flow rather than heavy dilution. On balance, the positive operational momentum, strong quarter-over-quarter performance and clear growth pathway outweigh the listed risks.

Company Guidance

Management reconfirmed full‑year 2026 guidance of 25,000–30,000 oz of gold (YTD 14,000 oz; Q2 ~7,500 oz) with cash‑cost guidance of $1,400–$1,600/oz (YTD cash cost $1,507/oz) and said H2 should be stronger; Q2 delivered a record average realized price of $4,655/oz, revenue >$34M, gross profit >$21M (62% margin), adjusted net income ≈$12M and adjusted EBITDA >$20M (annualized >$80M), while YTD revenue is ~$60M and YTD adjusted EBITDA ~$33M (LTM: ~25,000 oz, ~$95M revenue, ~$50M adjusted EBITDA). Balance sheet and liquidity metrics include cash >$26M, ROM stockpile >20,000 oz (fair value >$100M), working capital ~$32M (ratio 2.4x), accounts payable current within 30–45 days and access to credit lines >$12M. CapEx guidance remains $15–$20M (towards the upper end) with exploration budget $3–$5M; management is expediting procurement for a new ~3,500 tpd SAG/ball‑mill circuit (to run additively with the existing ~2,000 tpd plant) with delivery lead times quoted at ~30–40 weeks and commissioning targeted end Q2/start Q3 2027, and processing upgrades (thickener, Aachen reactor, ADR, oxygen plant) are expected to lower processing and reagent costs; the forthcoming PEA update (previous study assumed ~$1,900/oz resource cut‑off and showed ~62,000 oz/yr average, cash costs ~$1,000–$1,200/oz and average revenue ~$250M/yr with average EBITDA ~$176M at $4,000/oz) will be refreshed at a higher gold price (~$3,000/oz).