Alamos Gold Inc. (AGI) Earnings Call Transcript & Summary

Good morning, and welcome, everybody, to Alamos Gold's 2026 Investor Day. My name is Scott Parsons, I'm the Senior Vice President of Corporate Development and Investor Relations, and I'm going to be providing a brief overview of the schedule this morning. There we go. We are going to be making some forward-looking statements throughout this presentation. So please do review our cautionary notes. I'll start with a brief introduction to our presenters today. from our leadership team here in Toronto, we have John McCluskey, our President and CEO; Greg Fisher, Chief Financial Officer; Chris Bostwick, Senior VP of Technical Services; Luc Guimond, our Chief Operating Officer; John Fitzgerald, our SVP of Projects; Khalid Elhaj, our business -- our VP of Business Development and Investor Relations; and Scott R.G. Parsons, our Vice President of Exploration. From the Island Gold District, we have Austin Hemphill, the General Manager of the district; Nathan Bourgeault, Technical Services Manager; and Tyler Poulin, geology superintended. For those of you here in person, we do have some core on display from the Island Gold District, some of the recent drill results we put out over the past week and the past year. really high-grade intercepts from within the main structure as well as that spectacular new hole we released earlier this week from the client pick target. That is an upside opportunity beyond the expansion study that we're going to be outlining today. But fundamentally, it's that pace of exploration success, which is driving the larger expansion of the district. So please take the time to speak with Tyler and Scott. They've been leading that pace of exploration success across the Island Gold District. They'll provide some insights into what we've found to date and why we see excellent potential for that growth to continue. I'll provide a brief overview of the agenda today. In a few minutes, I'm going to turn it over to John to provide a more formal introduction. That's going to be followed by Greg, who's going to provide a more detailed review of our updated 3-year guidance. Luc is going to provide detail on the 3-year outlook for each of our operating mines as well as an update on the Lynn Lake project, which we included in our guidance released this morning. We are going to pause for a Q&A segment at that point. We are covering a lot of material today. So I'd -- we'd ask that you just paused your questions until the designated Q&A segments. For those of you on the webcast, you can submit your questions through the Q&A button. After that, we'll take a short break and then move on to a more detailed review of the expansion study, and that's going to be led by Luc, Chris, Austin, and Greg will review the economics. Following that, Scott is going to provide a more detailed review on our global exploration activities. We've had a number of releases out over the past couple of weeks. So he's going to tie that all together in terms of the potential we see across our asset base. Obviously, Island has been a big success story from an exploration standpoint, but there's a lot of success going across the rest of our portfolio. And with that, I'll turn it over to John to provide a more formal introduction.

Thank you, Scott. Good morning, everyone. Welcome to our Investor Day. You can see from the thick size of that, I'll turn it over deck on your table there that there is an awful lot [Audio Gap] Way we're going to production is to 1 million ounces of production is -- it's not pie in the sky. We're permitted to get there. There's some ancillary permits we need as we go through these expansions, but the main permits for throughput and environmental permits and tailings permits, the real tough ones, we have those in hand. We're basically fully funded. We fund all the growth that we're talking about here through our own cash flow generation. What we're talking about is real development that we can control. It's not predicated on some acquisition or some other major milestone that we have to achieve. This is a relatively new slide because we often talk about the fact that we're a fast-growing company. Well, here's how we look relative to our peers in terms of growth, in terms of where we'll be with respect to costs. Our costs are fairly low now. They're going to be going lower. They're going to be at the very low end of the first quartile. Growth in reserves. You can see that we've got one longest life reserve profiles in the sector. And just the size of the reserve. It's really an amazing job that we've done in growing that over the last few years. And part of the reason why we did it. I remember when the focus of the market was just on cash flow, cash flow all the market wanted to see was free cash flow. And we still allocated way more money than any investor would have thought wise. -- into exploration because ultimately, we knew that's the lifeblood of the company, and it has really paid off well. And now, of course, look what's happened to the gold price as it's moved from $1,600 when I recall having a number of those conversations with investors. Today at $4,500 sitting, on 16 million ounces of reserves, that's value. And we're going to have a great set of presenters today. Everybody has -- we did a big walk through yesterday. I was pretty impressed -- some of you have already been looking at the numbers with the published press release. I look forward to sitting with you and listening to what we're going to do day. I'll come back later and just make some closing remarks. But at this point, I'm going to turn it over to Greg Fisher, and he'll go over some of the financial metrics. Thank you.

Thank you, John. So I will take us through the 3-year guidance We put that release out this morning. But before we get into the 3-year guidance, just a quick recap of 2025. So we finished 2025 in the fourth quarter with 142,000 ounces of production. That was in line with what we produced in the third quarter. and that brought our full year production to 545,000 ounces. That was lower than what we expected. We've been pretty transparent about that. We had some challenges at the operations. And Luc is going to touch on that as part of his presentation, really focusing on some of the kind of things we're doing in the short term and the long term to get that back on track. But despite those challenges, we did have a record financial year. I look at free cash flow always as a key metric as the CFO. And we -- despite the fact that we invested heavily in growing the business, we continue to invest in exploration, spent $75 million there. We're growing the business through our Phase II expansion. We still generated $350 million in free cash flow. And that's an important metric for us as we want to grow the business. We also want to ensure that we're continuing to generate that strong free cash flow. That led to a very strong cash position of over $600 million at the end of the year and net cash of over $400 million. The other piece is we were very focused on capital allocation in the fourth quarter. As you know, we were going through an arbitration in Turkey. We were able to settle that and sell the asset and we thought that was a very good outcome for $470 million. We received the first amount of the proceeds of $160 million upfront in October, and we immediately put that money to work by using the share buyback. We bought back over 1 million shares, $30 million worth -- in addition, we paid down some of the debt. That's debt that we inherited as part of the Argonaut acquisition. So we paid that down to $200 million. And then in addition, we had legacy hedges as part of that acquisition. Those were hedges that were an $1,800 gold price scenario that we're going to set to mature in 2026. We bought it the first 6 months of that. And we did that at a -- when we saw that gold price dip down to about $4,050, we went in -- we stepped in and bought back 50,000 ounces of that. So that's looking pretty good at this -- the current gold price of $5,000. So that's put us in a position to continue to generate strong free cash flow and have that balance sheet to execute on the growth that John spoke of. So looking at 2026 in more detail, production is expected to be between 570,000 and 650,000 ounces. So that's a 12% increase from what we did in 2025 of 545,000 ounces. It is lower than what we had expected for 2026 when we released our 3-year guidance last year. Really, the drivers of that are lower grades at Young-Davidson and Luc will touch on that as part of the sequencing that we're going through. And then a more conservative ramp-up of the Island underground as we look to ramp up to 2,400 tonnes per day. but still generating over 600,000 ounces a year at an all-in sustaining cost of about $1,550 per ounce. That's in line with what we are producing or what we produced at in 2025, but higher than where we expected to be. And given the change there, we'll have a slide that will walk us through what are the key drivers of that all-in sustaining cost increase. 2026 is going to be a heavy capital year for us. I mean we are growing the business. We want to get to that 1 million-ounce platform over the next number of years. So we're investing about $900 million in capital. It includes the -- completing the Phase 3 expansion, which has been ongoing for a number of years at Island Gold. -- it's embarking on this Island Gold expansion to 20,000 tonnes per day, which we're going to spend a lot of time talking about today. It's resuming construction at Lynn Lake in the spring. And then finally, the PDA deposit and building that in Mexico. And then just looking at a little bit more granular into 2026, it is a second half weighted production profile, and that makes sense. We're ramping up underground mining rates at Island Gold from, call it, 1,400 tonnes per day in the first quarter. to closer to an exit rate of 2,000 tonnes per day as we look to support that ramp up to -- as we transition from ramp mining to bringing ore up the shaft. As a result, our production in the first half is going to be about 290,000 ounces and production in the second half at the midpoint is going to be about 320,000 ounces, with our first quarter being the lowest production quarter of the year. From a cost perspective, we see that ramp-up of underground at Island Gold. That is our lowest cost production that we have across the company, and that's going to bring down our cost profile from about $1,675 per ounce in the first half of the year to $1,450 in the second half of the year, and we're going to see a further decline into '27 and 2028, which I'm going to outline on the future slide. From a capital perspective, a little bit more capital in the first half of the year as we continue through the Phase 3 expansion, but that's going to wind down in the second half of the year as we bring that project to a completion. And what this means is higher production, lower costs, lower capital in the second half. We're going to generate significantly more free cash flow in the second half of the year and even more so as we move into 2027 and 2028. So we did want to spend a little bit of time in kind of reconciling or showing how we've moved in our all-in sustaining cost guidance for 2026. We had previously said all-in sustaining cost guidance of about $1,200 per ounce for 2026. We're now at $1,550 per ounce. There's a couple of very obvious things. The first would be the gold price is quite a bit higher. That has a royalty impact on the business. The second would be inflation. We're very clear in our 3-year guidance that the future years do not include the impact of inflation. In the mining industry, it's been pretty persistent. We've seen inflation of about 5% across the board. We operate in Canada where there's competition for labor and there's costs associated with that. So we're seeing about a $60 per ounce impact there. The other component is around labor and contractors. This isn't the inflationary piece. This is -- we've recognized in order to hit 2,400 tonnes per day, but then to move beyond to 3,000 tonnes per day, we need to ramp up in terms of people, and we're getting ahead of that. We want to make sure that we're very successful in this ramp-up. So we're hiring the headcount now. We're incurring the cost from an all-in sustaining cost perspective, but we're going to see dividends down the road by doing that. And that's a little bit on the contractor side as well. So that's the other main piece with respect to the increase on our all-in sustaining costs. But ultimately, we're still at $1,550 all-in sustaining cost for 2026, which is first quartile. But as we move into '27 and '28, we're going to start to see that decline. From a capital perspective, pretty straightforward in what's driving our capital increase from our previous guidance. We had previously guided to about $650 million in capital for 2026. We're now closer to $900 million. The majority of that increase relates to the fact that we're moving forward with this high-return Island Gold district expansion to 20,000 tonnes per day. That would be mill construction as well as accelerating development to reach those higher mining rates. And as we're going to point out throughout this presentation, this is a very high-return project that makes sense to move forward with every day of the week. So looking at the next 2 years beyond 2026, I think it's pretty important and pretty clear that we're increasing our production in a stair-step fashion, and we're decreasing our costs in a stair-step fashion. So gold production in 2027 is going to increase to a range of between 650,000 and 730,000 ounces. And that's given the ramp-up of mining rates at Island Gold as we bring the shaft online and we move to 2,400 tonnes per day throughout 2027. We're going to continue to ramp that up through 2028 as we move towards the higher throughput ultimate throughput of 3,000 tonnes per day, and that's going to bring our production in 2028 up to a range of between 755,000 to 835,000 ounces. The benefit of bringing on all this low-cost, high-grade production from the underground is it's going to have a pretty significant impact on our costs. We'll see our costs moving from the $1,550 mark that we expect in 2026 down to about $1,375 in 2027 and then moving even further down to about $1,250 in 2028. That's also aided by the fact that we'll be bringing on PDA production in the second half of 2027, which is also lower cost. From a capital perspective, in 2027, it will look very much the same from a gross number as our 2026 capital. We'll see the Phase 3 expansion coming off, but we're also going to be ramping up Lynn Lake to kind of peak construction periods in '27 and '28. So we'll be around that $850 million of capital in 2027. But as we move into 2028, we'll have the drop-off of capital at PDA, the drop-off of capital at this further Island Gold expansion. We'll be down around $650 million and then an even more profound drop into 2029 as the Lynn Lake project comes to completion in the first half of 2029. So looking at the 3-year guidance in tabular form, I mean, this speaks to the stair step increases. We're basically going from a 600,000 ounce producer in '26 to 700,000 ounce producer in '27 to an 800,000 ounce producer in '28. And then by bringing on Lynn Lake in the first half of 2029, that adds about 200,000 ounces a year of production. So that's where we get to that 1 million ounces of annualized production before the end of this decade. And that's something that we can sustain for a long period of time because if you look at the mine lives of each of our operations, they're all well over 10 years. So this is something that's sustainable well into the future. And from a cost perspective, as we bring in that higher grade production, we're going to decrease our costs. And with Lynn Lake coming on, Lynn Lake has a cost profile below $1,250 an ounce that will bring down our cost profile every year for the last 16 years. But last year alone, we returned $80 million to shareholders in the form of both share buybacks and that dividend. And we think as we move forward, we'll be in a position to grow those shareholder returns through a sustainably higher dividend as well as being more active on that share buyback. With that, I will pass it over to our COO, Luc Guimond, to walk through some of the assets in a bit more detail.

Thanks, Greg. So I'll provide a bit of an outlook, I guess, on Q4 results as well as our outlook over the next couple of years and some of the improvements we're actually looking to implement over the course of 2026 to deliver on our business plans. So we'll start with Ireland. Island Gold District, we produced 60,000 ounces of gold in Q4. We had some impact with regards to mining rates in the quarter. Weather conditions were actually quite extreme through the December period, late December, affecting supply chain, road closures, getting people into the site and out of the site had some effect on the rates through the quarter. We also had a seismic event in October. So we really focused on a lot of rehabilitation through the November, December period to get the mine back on track, certainly where we're heading with regards to our growth profile moving forward, and we did achieve that through the November, December period. With regards to milling, we had an unscheduled liner change. We were actually looking to do that liner change in January, it ended up getting moved up into December with the Magino mill. -- which affected our milling rates in the quarter and as well, the road closure aspect of what happened in late December also had some impact. We're relying on CNG, compressed natural gas for generation there for power for the Magino complex. -- obviously, with the road closures that occur, we're not able to actually get supply into the operation to keep the mill running. Moving forward, improvement initiatives for 2026. There's a couple of things that we've got on the goal. Certainly, as I mentioned, we've completed the rehabilitation work with regards to the majority of the rehabilitation work required from that seismic event we had in October. We kind of focused on that through the November, December period. So moving forward into the new year. We're kind of back on track with regards to mining rates. We continue to look at restructuring the maintenance and mill management of the Magino side as well. Greg kind of touched on that a bit with regards to the -- the expansion that we're going to be doing and then the amount of people that we're going to need to be able to run the business there. We're looking to actually get ahead of that and start bringing more people in to be able to manage more effectively, certainly from a senior level oversight regards to the maintenance and the mill complex. We're continuing to work with a third-party specialist. We've been doing that since the fall. They've been helping us working on operational improvements as well as best practices on the maintenance front, so we continue with that group. As I mentioned on the Magino side with regards to CNG, that will be a significant game changer for us when we're able to get to grid power. We expect to do that by the end of this year. So we're really looking forward to getting that online. It will be a much lower cost for us to be able to operate as well as much more reliability with regards to operating the plant. And we're also looking at it as a supplementary crusher feed to increase our capacity at the Magino mill, and I'll touch on that a bit as well. As far as the Magino milling rates for the district, we averaged 8,600 tonnes per day through the quarter. Excluding the weather issues that we had there in late December, we would have averaged over 9,000 tonnes a day. So we've continued to see an improvement quarter-over-quarter, certainly since we've acquired that mill complex. I touched on some of the restructuring we're doing with the mail management. We're actually expecting to see more consistent throughput through that plant starting in Q2. We do have a liner change scheduled in May, both for the SAG mill and ball mill. But excluding that, we're looking to be running at 10,000 tonnes per day more consistently on a month-to-month basis. And as a function, obviously, of the ramp-up, that's going to be occurring over at Island. And we're continuing to run the island mill complex as well as the Magino complex over the course of 2026 and 2027 until the expansion is completed. All of the additional ore that's not fed through the Arlan mill will obviously get processed over at the Magino mill to make sure that we get all of that high-grade process through the course of the business plan through the year. So a bit of a 3-dimensional sketch here looking at the existing mill complex as secondary [Audio Gap] we have those in our supply chain and have them as critical source so that we can certainly keep the plants running and benefit from this high gold price environment that we're in. Regarding the ore pass system that I touched on. So you can see in yellow here in the long section, general long section at Young-Davidson. The yellow lines that you see in here are the ore pass systems that are currently in place. The light blue is the fourth one that we're looking to bring online. So this is just normal function, normal course of business as we look to expand our mining horizons east and west is looking to centralize ore pass systems within those mining fronts as well to improve the overall efficiency of getting ore down to the 9025 Grizzly station through our crushing plant and obviously hoisted. The one issue that we had with the pass system is if you look at the center ore pass systems with that V shape in it, the bottom east side of that raise system actually had a head wall -- some headwall damage that we had to correct and rehabilitate, which we did in the -- which we will be completing earlier this quarter. Looking at the 3-year outlook, pretty consistent production from Young-Davidson over the next 3 years, averaging about 165,000 ounces a year, really grade driven. We kind of touched on this. It's really sequence driven with regards to the production. So the production profile based on that sequence, the grades are what we have in front of us. We do expect better grades as we move forward come 2029, 2030, but over the next 3 years, pretty consistent. Still got a long reserve life of over 14 years. Of over 14 years. So we'll continue to generate strong free cash flow for us. We generated over USD 200 million in 2025. And significant exploration upside as well that Scott will touch on his slide deck. Upside potential for Young-Davidson, a few things there. One is mill expansion. I mean we're permitted to 12,000 tonnes per day. So we have an opportunity there to actually look at running at a higher throughput through that complex that's already permitted. We've been looking at potentially bringing it up to 10,000 tonnes per day. There's a modest expansion required to probably about $40 million or $50 million to be able to do that. It wouldn't necessarily be higher mining rates from Young-Davidson underground. It would be from supplemental feed sources within the region, likely open pit sources, one is Golden Arrow. It's about 90 kilometers from Young-Davidson currently. It's an acquisition we made a few years ago, something simply that we could bring online and provide additional mill feed into the mill complex. We've got some other local closer sources, the YD open pit potentially. This is part of the original pit mining that we did back in 2014, 2015. That was a Phase I, Phase II that we mined. There's also a potential there for a Phase II. OT Lake, which is another target that Scott will touch on with regards to some of the regional exploration targets. And we do -- just Young-Davidson alone, we do have some significant exploration upside at depth east and west, and Scott will also touch on that with regards to his slide deck. Just to touch on a little bit on the Young-Davidson. This is the high-grade potential high-grade hanging wall zone that we've been talking about for a while. It's sitting in the sediments. Really, what I want to just depict here is that you can see that's a cross section you're looking at. So you can see the infrastructure as far as Young-Davidson. So we're vertically accessed with our ramp system. We're vertically accessed with our shaft system. The proximity of this zone based on what we know at this point. It could be anywhere from 100 to 300 meters from our existing infrastructure laterally. So it's quite close, quite easy to be able to bring online. We just need to understand it better from a point of view of certainly strike length vertical extent and then look to bring it into a mine plan. Moving over to Mulatos, the Mulatos District itself. Mulatos had a good year. It generated about 142,000 ounces from the district. So we continued residual leaching from our historical Mulatos leach pad. That continued to perform quite well as well as a Yaqui Grande. So we're really looking for a pretty stable outlook here over the next 3 years. You can see in 2027, production dips a bit, but that's when we bring PDA online. So mid-2027, we're looking to actually start production from and we'll continue with residual leaching over the course of 2027 with La Yaqui as well. We've got a 9-year mineral reserve life. I think the big caveat here is certainly moving forward with regards to Mulatos is the fact that we're building a sulfide mill, and it's going to open up another lot of opportunities for us with regards to exploration and other sources that Scott will touch on in his exploration section to be able to bring other sulfide feeds into that mill complex for the long term, well beyond the 9-year reserve life that we currently have with PDA. Looking at PDA. So this is a bar graph showing the production profile. You can see starting in 2027 ending in 2035. The first 4 years of production are going to average about 127,000 ounces, all-in sustaining cost of about $1,000 an ounce. It's a very low capital intensity, about $165 million. Most of that will be spent in the course of 2026. But to the point I just raised with regards to the back end of this production profile, again, just looking at PDA, you can see the production profile drops off, but we're pretty confident with some of the other exploration targets that we have at [indiscernible] that are sulfide deposits will be able to actually bring those into the mix and sustain a higher rate of production there for the longer term. A bit of a 3-dimensional view of what we're looking to build with regards to PDA. So you can see it's fully permitted. First off, we did receive our permit in January. So full speed ahead. As I mentioned, the capital investment is primarily in 2026. So we're looking to spend about $140 million this year of the $165 million. So we did spend a little bit in '25 and the remaining will be in 2027. Easy access. So it's coming out of the Mulatos pit, one of the bench elevations. We'll be driving 2 portals into the underground. So you can see a picture of it on the left there with regards to the deposits themselves, PDA 1 and 2. So it will be ramp access production hauled out of the mine and then trucked over to the mill itself. Mining method will be a mixture of primarily drift and fill, but there'll be some long-haul opportunities as well within the mining methods that will utilize there. Crushing and processing. So it's 3-stage crushing. This is -- the crushing plant is actually our existing crushing plant that we had at [indiscernible]. So we've sent it out had it refurbished and then we'll reinstall it. and it will be single-stage grinding, which will be on primary ball mill to handle the 2,000 tonne per day processing rate that we're looking to design there. It will be a float con that we generate. So we'll market the flow can off site. So on that basis, there's no cyanide usage at the plant itself and no tailings storage. It will be a dry stack product that will actually store based on the milling process. Schedule time line to production. You can see '25, '26 and '27. So Q2 2027 is when we expect to be fully commissioned and wrapping up with regards to the production from PDA. The heavy lifting really over the course of 2026 will occur with regards to the mill complex processing plant, well advanced foundations, concrete work, structural steel. It's Obviously, very simple bills in Mexico relative to certainly building anything in Canada. Nothing has to be enclosed. So it's quite cheap to build. And we've undertaken a number of these projects over the years actually with regards to certainly other pit operations that we brought online and developed some crushing and stacking plants with regards to those projects. So we've got a good team in Mexico that are very accustomed to building these smaller-scale capital projects and bringing them online and on schedule. As far as exploration upside. So in this drawing, it's a planned view of the district. Basically, you can see PDA, the Port of Delaire in the middle. I've touched on a couple of the other ones. Scott will provide a bit more detail on that, but certainly Sara Pallone and Halcon are 2 targets where we've got some interesting intercepts already. And as I mentioned, they're sulfide deposits. So we expect to be able to bring those online at some point and also feed into that PDA mill complex over the long term. So really, the -- what we've embarked on with regards to the sulfide plant really opens ourselves up from a bigger opportunity with regards to a lot of these targets in the region and keeping us in the game in Mexico for a lot longer than just the 9-year reserve life that we have with PDA. Moving over to Lynn Lake, looking at projects. So this is a snowy day and emerged with the groundbreaking ceremony. It snows like that in July and August to Lynn Lake. With regards to the highlights. So we've updated the economics on Lynn Lake. You can see the map there, which is outlined with our land package in orange, the orange border. So we've got about 80 kilometers of strike length. And again, Scott will touch on this a bit more with regards to some of the exploration potential. But we've got a larger mineral reserve that we've upgraded, and we've included burn timber and liquids. So these are a couple of other targets that we had in the region. And we've also looked at actually expanding the mill complex from what we had previously communicated now to 9,000 tonnes per day. It makes sense longer term. We've got a real district here. And we think, obviously, bringing it to 9,000 tonnes per day is a better avenue than what we had previously put out there. It's got a long reserve life of plus 25 years, and Scott will touch on the basis of sphere much longer than the 25-year reserve life that we currently have. First 10 years of production are going to average about 186,000 ounces of gold. All-in sustaining costs of about $829 per ounce, and the remaining initial capital, the remaining capital is about $871 million. The updated capital is about $937 million that I'll touch on in a bit more detail. Key changes really to the 2023 feasibility study, a 13% increase in the mill throughput. As I mentioned, we're going to take it to 9,000 tonnes a day. We've incorporated a couple of more of the satellite deposits. So these satellite deposits will be trucked to MacLellan mill complex. The mill will be located at the MacLellan mine itself, and these other satellite deposits will get truck there within the region. We've also had impact, obviously, with construction-related inflation over the last 3 years compared to the study that we put out in 2023. Permitting-wise, we're in pretty good shape. There are some amendments that we need to do there. There's a notice of change and notice of alteration, both federally and provincially, but normal course of business really -- and for the most part, what we're building the footprint has remained largely unchanged. So 3-dimensional view of the mill itself -- so it's a larger mill binding. So these are some of the key component changes to the 9,000 tonne per day plant that we're building. It's a larger mill building. It's got a SAG ball mill arrangement. It always had a sag ball mill arrangement. It's just a larger segment, a larger ball mill, a larger thickener. We've also added some additional leach tanks as a result of more tonnes going through the plant, higher gold content and more leach capacity required. And we've expanded the CIP and the ADR to be able to accommodate that higher gold content going in as well. So looking at a waterfall chart here with the capital. So you can see on the left 2023 feasibility study had $632 million. If you look at the orange bar graph, it's $937 million based on the update with the changes that I've talked about. The key drivers there, as I mentioned, really are inflation over the last 3 years. The scope changes associated with a larger mill complex to bring it to 9,000 tonnes a day and a longer construction time line from what was originally estimated with the 2023 feasibility study. So that's really what's brought the capital from the $632 million to the $937 million based on the updated plans. With regards to the breakdown of expenditures over the next couple of years. So we were a bit delayed in 2025. We were looking to get going. But obviously, with some of the forest fires that occurred in the province of Manitoba, we were evacuated for of time for the most of the summer construction season in 2025. We've had to kind of reset ourselves with regards to the time line of the schedule and bringing it online. The heavy lifting will occur in 2027, where you'll see that we're looking to spend about $380 to $410 million, about $290 million to $310 million in 2028 and looking to bring Lynn Lake online into production in 2029. So really, this spring, spring of 2026 is when things will really start to get going with regards to the construction activities at Lynn Lake. Schedule wise. So as I mentioned '26, '27, '28 is our construction period. Q2 of 2029 is when we would look to actually have our first gold pour commission the mill and bring it online and that add that sustaining gold production for the long term out of the district into our overall consolidated production profile. And that's about it from my section. I think we'll move into the Q&A.

Thanks, Luc. So we'll just ask the rest of the team to come up now and address any of your questions related to the 3-year guidance. We will be getting into the expansion study into the afternoon. So if we can keep the focus on the guidance for now. We'll address questions with respect to the study into the latter part of the presentation. And a reminder for those of you viewing through the webcast, you can submit questions through the Q&A button. And Cosmos, if you could please just introduce yourself and mention who you work for, for the benefit of those online.

Great. Thanks, Scott. It's Cosmos Cor, research analyst at CIBC. So just one quick question. I noticed that in the 3-year guidance, you increased compared to your previous guidance. 2026 costs by over $300 an ounce lower in terms of the quantum of increase for 2027, I think you only increased it when compared to previous guidance by $200 an ounce I guess my question is, have you factored in at least for 2026, some of the issues you had in 2025 rolling into at least the front part of 2026.

Yes. Yes, we have, Cosmos. Certainly with our Canadian operations, looking at both Young-Davidson and Island Gold, certainly from a development perspective, what we're doing with regards to our enhanced dynamic ground support with regards to managing and mitigating obviously seismic activity within those operations. So yes, we have certainly looked at that and factored that into our into our business plans.

Yes. I mean the other piece Cosmos would be that an example being the Magino mill. You saw the tonnage that we've put through, it's more conservative. That impacts the production, but it has a direct impact on the costs. side as well and the more conservative ramp-up at Island Gold underground. That has an impact on production, but it also has an impact on costs. So we have factored those things in by being a little bit more conservative on those in terms of the ramp-up on each of them and therefore, have been built into the cost structure.

Bryce Adams from Desjardins. A quick question on capital allocation. You talked about strengthening the balance sheet and returns to shareholders. Just wondering if you have any targets on that like strengthening the balance sheet. What does that mean? What position do you want to get the balance sheet in? And when you talk about our returns to shareholders, do you have a percentage of residual cash flow that you would like to distribute?

So yes, I mean, John, feel free to jump in as well. From a strengthening balance sheet perspective, I mean, the first thing I want to do is pay down our $200 million of debt like that. That's something that we as a company over our history, have typically had minimal to no debt. It's always created opportunities for us over the years, and that's the position we want to get back to. So in terms of what we're looking to strengthen the balance sheet, it would be absolutely paying down that debt. On the dividend perspective, John, feel free to jump in. We don't have set targets based on cash flow. At the end of the day, what we want to do is look at what dividend we can set and we can sustain that over a period of time. We don't want dividends jumping around. And from a share buyback perspective, we will never targets to a share buyback. Our view is share buybacks are to be used opportunistically. If we see a dislocation in our share price, we're going to step in and we're going to step in hard to use that. We're never going to set a target because the mining industry in general and the gold price is so volatile. It doesn't make sense to set targets with respect to share buybacks. For us, it's step in when you need to. John?

I think we talked about this at one point. That's pretty much the policy. And for the very recent that we're in a cyclical business. And you get periods of time where the gold price is really fine shape, and you're generating really strong cash flows. You get times where your -- the focus is on maybe acquisition, so you're allocating more money in a weaker market. We have allocated a lot of effort into making acquisitions and then investing in those acquisitions through exploration and expansion. It's a priority for us, but the last time we had a really strong dividend yield was in those years from 2010 through 2013. We had close to a 2% dividend yield. I more or less have a view in mind of the kind of dividend yield I'd like to sustain. It's higher than what it is now. The reason why it's relatively -- we're low right now. First of all, the gold price running like a Jackrabbit. It's really hard to keep up with that in terms of a dividend policy per se. But you can see that where we're really focused is on building the business and sustaining production levels at very low costs. And what that does is you can assume the gold price is going to be volatile, but it's not going back to $1,200 or anything like that. It would be a massive shock if it did. So if you look forward and assume that you're going to have higher gold prices in the future, the way we've seem to have seen gold build like over time at basis, and then it grows from that base. so cyclical, yes, but ever-growing price. I think that the time is going to be not that far off when you can see the capital spend on this growth starts to come down, and you're going to see our dividend yield rise. In the meantime, we can do what we did last year, which was spend almost as much on share buybacks as we did on dividends. And that we can do in a very opportunistic manner rather than setting yourself at a point where you're going to be spending pretty heavily on capital and you've got this big dividend to sustain got to decide at one point, what kind of company are you? Well, we're not Barrick and we're not Agnico Eagle. We're a growth company. We're, say, what Agnico was 15 years ago. And we're in a very, very strong growth trajectory right now, probably the fastest in the industry. And we're not just growing in one aspect. We're growing, as we pointed out earlier, in those 3 key ways, right? We're growing production. We're growing reserves, and we're investing capital so that we have -- we can do this at low cost, low sustainable costs. That gives you the ability, if you will, to sustain a dividend for the long time -- long term.

If I can just ask one more for Greg. But on the cost waterfall chart into 2026. I think it was Slide 17. One of the biggest categories there was other. What's in the other and if you would break that down?

There's lots of little things that go into it. Example would be G&A is a little bit higher because as support going from a 500,000 ounce a year producer to 1 million-ounce a year producer, you need to ramp up on the G&A side as well. That's falling into it. And another example would be we had not envisioned producing anything from the old Mulatos pit previously. We're now going to probably produce 10,000 ounces from that pit in our budget. That's higher cost. I mean it's residual leaching. It's above $2,000 an ounce, that's going to drive up your cost on the thing. So we probably could have had 15 different categories on there, but those are all kind of small things that are adding up to that $90 an ounce that we had in that other category.

This is Sathish from Bank of America. I have a couple of questions on Allen Gold. So maybe if we can about talk about the -- so currently, you're working with some of the third-party specialists and you're implementing some of the modifications that they have suggested -- could you maybe give some color on what those modifications are? And have you factored it in into the guidance already? Or do you expect that to be implemented and that could have some upside as to the costs going forward? That's my first question.

Yes, I'll address that one. I mean we're using an outfit that we've used actually in the past. It's the outfits called Jameson Consulting. So we've -- we had them do some continuous improvement for us at Young-Davidson, when we were transitioning with the ramp-up after we had commissioned the lower mine expansion just to get it to that 8,000 tonne per day. So it's an outfit that we're quite familiar with. I mean what they bring to the table is operational experience of running processing plants as well as the best practices around planning and scheduling of maintenance, maintaining critical spares and understanding the specifics of the entire process. And we're really focusing on the crushing and grinding circuits. It's not a full-scale mill review with regards to operational best practices and maintenance best practices. So we engage them in the fall and they continue to be with us. This is something that we do on an ongoing basis. I mean, in this case, it's been third-party review that we're doing it with. But as part of our normal business of running our operations, there's always continuous improvements to look at trying to reduce our overall cost profile. So on that basis, it's something that we will eventually continue to embark with ourselves as well.

I think some of the things will also become clear the next phase of the presentation when we start talking about how we're going to change the whole the whole flow sheet, if you will, from the -- and address particularly on the front end and the back end, things that were problematic over the last 18 months where we're running that mill.

And maybe on the -- I mean, like -- so you expect the Magino mill to be connected to the grid by the end of 2026. Would you be able to quantify what the cost savings could be once you connected?

It's between $4 and $5 a ton is the expected savings by connecting to the grid versus CNG for a year.

The other big benefit there really is reliable power, like generation, as I mentioned, with regards to the events that we had this year in the December period with regards to road closures, Compressed natural gas needs to get trucked into the facility to be able to keep the lights on, basically. In this case, once we've got grid power, we didn't have interruptions of our other operations with regards to the storms that occurred in December because they're on grid power. So that will be another big benefit for us.

John Goldsmith, [indiscernible]. So just with regards to the guidance, I wonder if you could provide a little bit more color there, specifically for '27 and '28 in terms of what you're embedding in terms of the base labor and contractor inflation the base local market inflation, your expectations for currencies, Canadian dollar and peso? And then lastly, just what your assumption is on gold prices because that will obviously impact your royalties.

Yes. So the base case assumptions was basically a flat FX and gold price from where we are now. So $0.74, PLN 18, $4,000 gold. And then we make it clear in our disclosure that we do not include the impact of inflation in '27 and '28. So just we just don't know what it is. It could be 2%, it could be 5%. At this point, we just made it clear it's not included in that -- in the '27-'28 guidance. And when we get to the next year, we'll embed that.

Okay. So there's 0 inflation embedded in 2728 from your base of 2026?

Correct. Everything is based on 2026 costs.

Understood. And could you remind me if you looked at your '26 ASIC what percentage of that would be labor and contractors?

I mean of our cost profile, it's about 50%. When you include capital, it's -- yes, it's probably between 45% and 50%.

We have a few questions from the webinar. I'll start with the first. Young-Davidson is running below reserve grade of about 2.25 grams per tonne. When do you expect to encounter higher grades?

Yes. Yes. So as I mentioned, we're sequence driven with regards to Young-Davidson. So over the next 3-year outlook, certainly, we're in that 2 to 15-gram per tonne range. But as we move through the mine plan over the next couple of years, starting in 2030, we should see more in line with reserve grades and higher at that point in time when we're in the sequence of the mining extraction.

This is Francesco from Scotiabank. I just want to start with a sort of high-level question maybe for John. You had a slide earlier on that showed Alamos compared to peers in terms of assets in Canada, production in Canada, production growth reserves, these sort of things. Can you just describe for us how you think that frames almost in terms of M&A, either as an acquirer or as a target? And then can you maybe just describe how you feel about the current environment for M&A, whether we're at top of cycle or mid-cycle, bottom cycle? Just your thoughts there.

That's a bit like asking the cow out it's going to taste on the plate. We're trying to create a really attractive company for investors, our shareholders. But naturally, that creates a very attractive target for acquirers. And there's not very many companies positioned as well as Alamos' position. 90% of our -- our valuation currently is Canadian. You can see it's growing. We're putting all the investment pretty much in kind of -- we're sustaining our production in Mexico, but we're growing our production in Canada. There's just not a lot of really high-quality assets that are for sale in Canada. Our assets have good track record. They're permitted. They can be scaled up. We can scale up YD, we can scale up Ireland. Lynn Lake is going to grow over time, a little doubt in my mind about that. So it's -- one of the things that I looked at, I was saying, you know what, really is out there like Island? And there really isn't anything, but what I had to look back. I've been around a long time now. And the [indiscernible], I could find to Lynn Lake and some of you might remember this, it was a golden giant mine. [indiscernible]. It was just on about 11 grams. The largest reserve Golden Giant ever achieved was just over 5 million ounces. I think -- in the beginning of the '90s, it was about 5.7 million ounces. That was its biggest reserve. It was a 3,000 tonne per day milling operation, generating around 400,000 ounces of gold a year. That was a massive story. That was the highest grade mine and one of the real big stories, it was a Noranda operation. And Hemlo in the aggregate had about 15 million ounces, 3 mines, 3 different companies. It was a major story. Everybody -- I remember I was sort of new into the industry back then. This is the mid-80s. And all you ever heard about was to hear about Carlin and you heard about Hemlo. Those were the big, big stories. The biggest Canadian story, of course, was Hemlo. And we're effectively on to something like that. I mean you're going to see our update on reserves and resources shortly here. But -- and if you look at what we've got now, just between the lower grade open pit and the high grade, we're up over 8 million ounces now. No -- one of those mines got there. Collectively, they became bigger. But if you take a look at the reserves and resources we're close to 11 million ounces now. This is a scale that it's world-class by any measure. And I think that we realized we've got something really valuable here. We realized in order to turn it into what it should be. We've got to effectively invest in it the way we're laying out today. And what it becomes is something that we only have a very few examples up in Canada, gold mines that generate over 500,000 ounces of gold a year and can do that for a long, long time at low cost. I don't think that 500,000 ounces is the peak production for this mine. I think it's going to come -- this is just another way station. It's going to continue to grow. And it's being driven by that growth in reserves. And I think that will become clear as Scott goes through his portion of the presentation. So we're so focused on growing our assets. M&A isn't really top of mind for us right now. When it will be top of mind again, none of you will be interested in M&A. That's Alamos, right? 2015, '16, '17, we would have done probably another couple of transactions if the market didn't hate them so much. The market doesn't like M&A at the bottom of the market. But here we are at $4,500 gold, there's going to be M&A. We're going to see more of it announced. We've just seen another deal announced in the last few days. But our sort of game plan is to, just as we laid it out, it's to invest in exploration and capital in order to grow the existing suite of assets. we can add so many ounces near permitted infrastructure. That makes sense. That's the way to build value. We can double our production through our existing assets. we've got to compare anything we might acquire to that pipeline, and I just don't think it compares.

And then -- sorry, I've just got a couple more questions from Aves, if I could. So for Luc, actually. In terms of 2026 guidance is second half weighted, I guess, largely driven by Phase III plus expansion plus maybe some operational challenges from '25 lingering into -- or the early part '26. Can you just describe if the rehabilitation work at Island Gold is complete and whether you've returned to mining, I think you mentioned in the Island main zone and what your targeted mining rates are for Q1.

Yes. We're substantially complete, as I mentioned in the slide deck with regards to the rehabilitation to move forward into 2026 with regards to the ramp-up. There is one area that still needs to be addressed, which is our Island Gold. The -- we refer to you as the IG zone is an escapeway that we had mentioned that would still have to be reestablished. That will actually be reestablished in February, which will then open up that mining front again for us. But for the most part, you have the rehabilitation is substantially complete, and it will not have any impact with regards to the ramp-up that we're looking to do over the course of 2026, 2027 and ultimately through 2028 as well.

And sorry, just on mining rates, we're looking around 1,400 tonnes per day for Q1 sorry.

And then with respect to that ramp-up at IG, are there anything that are concerning you with respect to development and increasing mining rates? Or is there any upside that you think you're keeping in your back pocket compared to the guidance numbers that were released?

No. I mean, we're obviously looking to ramp up. We're going to be doing more development as we move forward relative to what we've done in the previous years as we move into '26 and '27. We've got the equipment that's required in order to be able to sustain those sort of rates that we're looking at moving forward. And obviously, it's the labor aspect as well that we're looking to bring on board to be able to obviously, to continue to achieve the ramp-up as we move forward. So that's all built into our plan as we look to deliver on '26 and over the next couple of years with the ramp-up to ultimately 3,000 tonnes per day.

Actually, John or [indiscernible], I'm going to jump in with a couple of questions online, if you don't mind. How should we think about the cadence of first half guidance in 2026, Q1 versus Q2? And then looking towards '27, what are the risks and opportunities at both Island Gold and Young-Davidson?

I'll answer the first part of that question. So the cadence in the first half is going to be a stronger second quarter than the first quarter. So our first quarter will be the lowest production quarter of the year. We'll ramp up into Q2 and then sustain that through Q3 and Q4. In terms of the second part of the question, on Island and Young-Davidson. Do you want to handle that?

Yes, with the -- I mean, ultimately, our production will be stronger in the second half of the year at Island Gold because -- we're looking to ramp up the mining rates as we move through the course of 2026. So obviously, that's going to drive higher production. And the grade profile also at Island continues to get stronger as we move through the business plan in 2026, which will also help the gold production. YD, on the YD front, I kind of touched on that on the slide deck. I mean there's 2 drivers there certainly to getting back to sustaining the 8,000 tonnes per day relative to where we were in '25 and where we were delivering prior to 2025. And there's 2 components. One is expanding the development there on the footwall drives east and west to be able to give us more mining fronts to be able to provide a bit more flexibility to deliver on the plan. And the other aspect is the pass system. As I mentioned, we had one pass that was decommissioned for a period of time late last year with some of the repairs that we had to do. And as I mentioned, with regards to normal course of business with regards to the production profile, it continues to expand out east and west with regards to the sequence. Having those new -- the new paths that we're putting in as well as the existing passes more centralized to the production profile, we'll ensure that we deliver on our key metrics for 2026.

Don DeMarco, National Bank. John and team, congratulations on the guidance and the expansion study. So with the guidance, we see that -- once again, you've reiterated the goalpost of achieving 1 million ounces by 2030. I mean in past years, it's almost a vision, but it's becoming clearer now. And with this guidance, you're kind of incrementally stepping toward that goal post. Is -- John, you're talking about the exploration and growth and the trajectory you're on, what do you consider to be the ideal size? Is that a 1 million-ounce threshold, okay, we've achieved that. We're done. Let's try to sustain this. And so what do you think is that optimal size for a gold company in this environment where it's hard to find new assets, hard to transact on M&A for both the magnitude of production and the number of mines.

Yes. It's a good question. And it's surprising how frequently that question comes up. Why not be a mining company with 1 mine. Well, perhaps if you were a private company and you had 1 mine, that's fine. But if you're a public company and your share price goes up and down depending on how you did in any given quarter, one mine is risky. Something can go wrong and then your quota is blown. And we've seen -- we had 14 straight quarters without a blip in any of our operations. And suddenly, last year, we had sort of back-to-back one-offs that [indiscernible] for 3 quarters. And that was a head scratcher how things go so well for so long. And then suddenly, you're dealing with crazy weather issues, you're a seismic event. We hit by lightning. I think it was one thing after the other last year. And if you're ever going to have a year where the gods we're going to throw everything at you, probably 2025 was it because we still managed to have record cash flows. And we still did very, very well from a financial perspective. That said, the beauty of having multiple operations is, if anything goes wrong at one of those operations, you've got others that can kind of carry the ball. And if we've -- if you have 2 mines, you've obviously cut your risks in half to that one. If you have 3, you've now developed -- divided in third and so on 4, 5. But at what point does it start getting unwieldy. And I look at it -- I think with the management team of the size we're at, we can manage what we're doing quite well. We have too much effectively at Island Gold, but we treat it as effectively one concept and we're going to continue to integrate those operations. So from that perspective, we're operating currently at 3 sites. Lynn Lake will give us a fourth. I think we could -- this management team could comfortably add one more mine. I think we could add -- I think we could operate 5 mines, especially if you kept them within the same time zone and in a safe jurisdiction like Canada. It gets difficult if you're operating in one mine in Australia, one in South Africa, one in South America and another one in Canada. That's a different management proposition. I think you've increased your risk just because of the logistical challenges of trying to operate all over the globe like that. We are not trying to get big for the sake of getting big. I would rather have really high-quality operations, meaning low cost, long life with low political risk. That's been our objective. And there's a very short list of assets that fit our acquisition criteria. And from that perspective, you don't see us do a lot of M&A. But when the time is right and when the assets are available, we can be pretty aggressive. We did 3 acquisitions inside of 3 years between 2015 and 2018, all of which now are underpinning the growth and valuation of the company. So for everybody, it's going to be different. If you look at Agnico Eagle, probably biggest gold company by market cap, I think they have something like 10, 11 operations, something like that. Anything can go wrong at 2 operations then, and you've got 8 others to carry the load. So you can argue that from that perspective, the scale at which they operate, they've kind of derisked things a as far as you can go. But I think you just have to grow in stages. It's hard to -- we were a one-mine company up to 2015 and back in -- when we were getting started in the early 2000s, I think it had already been around for 40 years. We're still a new boy on the block, but we've come a long, long way in a very short period of time. and we've grown twice as big in half the time as Agnico did if you want to look at it that way. We have a great suite of assets. We're only going to add to it if we can find quality and it's got to be at the right price as well. It's got to be as good as what we're already developing. I think that's the way to answer that.

We have another question online. You had previously targeting ramping up genome milling rates to 10,000 tonnes per day in 2025. You're now expecting that into the second half of 2026. What's been the limiting factor? And Luc, maybe you can reiterate some of the upgrades that we're expecting to implement this year to get us to that 10,000 tonne per day rate.

Yes. I mean we've seen certainly continuous improvement there with regards to the milling rates quarter-over-quarter. As I mentioned there in Q4, we would have averaged 9,000 if it hadn't been for the weather issues that occurred in December. As we move into the new year, I mean, some of that weather effect from late December also had some effect the start of January with regards to the compressed natural gas availability to be able to deliver the site the mill up and running. We also had a liner change scheduled in Q1 as well. So throughput rates will not be at 10,000 tonnes per day in the first quarter. But as we move forward into the second quarter, other than in May, as I mentioned, there was another line or change schedule in May. We expect monthly to start hitting 10,000 tonnes per day and part of the changes that we're looking to make there, as I mentioned, is that we're going to add an auxiliary feed conveyor in there so that we can -- as we continue to work on the planned maintenance with regards to the crushing plant as well as some unscheduled events that occur we continue to maintain feed into the grinding circuit. So I mean, the bigger challenge for us has been more so around the crushers. And I think we've talked about this in previous communication, we did make some changes there with regards to changing both the cone crusher and the jaw crusher to improve the overall availability. The crushers themselves have been working well. It's part of the bottleneck has been just the feed aspect of it with regards to the Grizzly dump arrangement that we've made some modifications to as well, but it's not the longer-term solution. And we will talk about that a little bit more in the expansion study that we're looking to actually go to a larger garitory crusher that will actually feed we'll provide the primary crushing for the feeding both cone crushers, which will ultimately feed both the new mill as well as the existing mill for the longer term. But I'll touch on that a bit more in the afternoon session.

Sorry, [indiscernible] Montrusco, once again. So first question for Greg and then a follow-up for John. Just with regards to the guidance, once again, corporate G&A. Could you provide a little color on what that looks like for the next 3 years? And once again, if that is included in ASIC? Well, maybe I'll just start with that, and then I'll ask John after.

Yes. Our corporate G&A is going to be between $45 million and $50 million, and that's what we've incorporated over the next 3 years because that's built upon -- sorry, we expect to increase our G&A this year to support that ramp up longer term. So that's what we feel is the next 3-year G&A.

That is an ASIC?

That is included in ASIC, along with the baseline share-based compensation that gets concluded. So there's about $25 million of baseline share-based compensation that gets included in all-in sustaining costs each year as well.

Perfect. And then for John, we're talking about the opportunistic share buybacks and the answer to Don before with regards to potentially a fifth project. It looks like at $4,500 gold and your guidance for the next couple of years will be definitely throwing off over $1 billion in free cash. You talked about opportunistically looking to buy back stock. Could you provide any type of kind of guideposts in terms of whether it's price to NAV or EV to 2P ounce? Like what are you looking at opportunistic? And then just with regards to geography, I think one of the great strategies with Alamos, obviously, is being in lower risk jurisdictions. If you could also help us understand how does the U.S. BC or YUKON potentially fall in your ranking of geographies that you're currently not in?

So I got to take that. It's a broad, broad question. With respect to political risk, it really depends on where you are in those countries. The U.S. is -- we're not going to build a mine in Hawaii or Rhode Island anytime soon. U.S. really, you talked about frankly, you've talked about Nevada and Alaska primarily outside of that, maybe Utah, Idaho. I mean there's more jurisdictions that are kind of opening up. And I would say under this Trump administration and this renewed focus on mining, it might be on "critical minerals" which might mean something to the U.S. government and something else to the Canadian government. But the attitude towards mining is changing one way or the other. And that's mining broadly. They may be focused on copper and lithium or whatever. But ultimately, miners are not working for lithium companies and very little lithium production in North America. They're working for gold companies. And that's why they're actually talking to the CEOs of the gold mining companies about how you grow that industry because nobody knows better, that's the kind of mining that largely we're doing. I think that political risk in BC and the Yukon, you mentioned it's higher than Ontario and Quebec. That's just a reality. I think Ontario and Quebec represent 2 of the best mining jurisdictions in the world. And there's a reason why we've focused so heavily on those provinces. I think Manitoba is playing catch-up right now. They've got -- it's an NDP government. It's very pro-development. Why? Well, they want to grow their economy. The Northern Manitoba needs investment. It needs jobs. Nobody knows better than [indiscernible]. He's extremely supportive of investment and development. He knows that, that's going to be better for all those people in Northern Manitoba. So I kind of -- we're not in business where we are for any reason. I mean we're there because there was specifically encouragement from the government to be there. We've got to consider -- we've been operating in Mexico for a long, long time. but we haven't grown outside of Mulatos. We've done a lot of work within it. But there really hasn't been much opportunity to grow outside of it. And I don't think the Mexican government has fully come around to "encouraging" the mining industry to invest. And at some point, they will, I think, because I think they have to. There's just -- it's a very difficult thing if you're Mexico and Canada right now to go into these negotiations for [indiscernible] and how is that going to look. I don't think anybody really knows. But one thing we do know is Mexico is a mineral-rich country with a very long tradition of mining as is Canada. And we do that probably -- I think Canadians do mining better than virtually any other country in the world. I know Australia would put up their hand and say, just a minute -- but I think we are among the very best in the world. And this country has such vast, vast potential that you've got to know if you focus here you're going to -- one of these days, you're going to stick your thumb and pull out a plum. And that's effectively what we did with Island Gold. We saw long term, there was some fantastic potential there. It wasn't obvious to everybody necessarily when we acquired it, but look what it's developed into over time. Where is it going? I think it's one of those stories that just gets way better, way quicker than anybody ever imagined, including me. I think there's amazing opportunities. And I think for the time being, we're just going to prioritize our business, just the way you see it laid out in the presentation here. M&A, it's I think we do it very, very well. But we also know there's a time when it works better. I think that you're going to see lots of M&A activity. Just as you always do when gold prices run, it will be a relative value gain lots of these transactions will be driven by -- there'll be share transactions. And it kind of works. But at some point in time, the shares are worth money and you're paying with shares, you're kind of paying with money. And it's very hard to justify these multibillion-dollar acquisitions of really small assets that were worth hundreds of millions, not that long ago, you're now going for billions. And you need to have this long-term view that metal prices are going to be where they are or quite a bit higher in order to make those work. And I'm not that comfortable in growing our asset base that way. I think in that market, we can do much better drilling and developing ounces that way as opposed to acquiring.

Lauren McConnell, analyst at Paradigm Capital. I was just looking through your in Lake numbers? And just kind of wondering how did the 9,000 tonnes per day come as the throughput number now, especially when you look at the reserves at 25 years, should we be thinking about an expansion a couple of years down the road? Or what's sort of driving that as a throughput number from the near term?

Yes. When we looked at it, I mean, really relative to the time line that we're trying to meet with regards to the construction schedule and from a whole permitting aspect. With regards to that whole process of going from 8,000 to 9,000 tonnes a day, there was very little effect to that. So it made the simplest aspect of us trying to actually deliver on that ramp-up that we're looking to achieve to bring that online by mid-2029. But that's not to say longer term, there's always going to be a longer-term vision there, to your point. It's got a 25-year reserve life. Scott will touch on that. There's a lot of other exploration targets there in that district. So it will be -- it will be something that we'll continue to look at over time to actually look at potentially even expanding it beyond the 9,000 tonnes per day.

Yes. I think a future expansion is -- would make a lot of sense. If you look at the production profile, -- it's very high grade from the Gordon pit in the first 5 years. And then after that, if the production comes down, that's where we would look to do the permitting, which is a bigger exercise if you go to something bigger, that's where we look to do that. So ultimately, we want to bring down the 25-year life for sure. It's just going to be in stages.

Okay. Well, I think we'll take one more question online before pausing for a short break. Are there any takeaways or read-throughs from the postmortem analysis of the seismic event at Island Gold in October that inform future mine plan sequencing at both Island Gold and Young-Davidson, as you look to expand underground development to access some of the higher-grade areas of the deposit?

Yes. Look, I mean, we've touched on this before, seismicity as a normal course of business when we're operating these underground mines. So it's not new. We always have some level of seismicity within our operations as we're running through the extraction sequence with our stope cycle and mining phase that we're undertaking. So we continue to develop and understand that. I mean over time, if I look at the transition of -- where Young-Davidson started from a point of view, what the ground support standard was when it started compared to where it is today. It's a continuous evolution really of the ground control management plan for that operation, and it would be very similar for Island Gold as well. So we've continued to -- as we get deeper and higher mining rates, certainly with what's going to be happening in Island Gold, we've changed ground support standards to be able to adapt to that and manage it effectively. The other aspects that we've looked at in the island case is just in relation to the infrastructure that we have in place, the permitted infrastructure that's going to be there for the life of the mine. I'm referring to the ramp systems, shops on the things that are being developed over the long term to be able to support the long-term mining rates that will be occurring there. We look to enhance the ground support in those areas as well. We've looked to actually stand off a bit of the infrastructure from the ore body as well to provide better management of the overall ground control management plan as well for the long term. So it's a continuous evolution as we continue to mine and lessons learned certainly and adapt and incorporate those into the mine plan as we move forward.

Thank you, Luc. We'll pause there for about 10 minutes. We'll stay on track and restart the presentation at 10:15. [Break]

Welcome back to the presentation. So if I can just get everybody to get back in the room. Welcome back, everybody. We're going to continue with the presentation. So I'm going to look at -- moving forward, we're going to get more so into the expansion aspect of the Island Gold District. So I'll start with a few slides to kick it off. First of all, overview with regards to the expansion study that we've now released. If you look at our gold production over the first 10 years of this expansion study, we're going to be generating about 534,000 ounces of gold, all-in sustaining costs of about 1,025 ASIC over that 10-year period, which will be one of the lowest cost gold mines in -- certainly in Canada. Annual -- average annual mine site cash flow at $3,200 gold price of about $821 million and after-tax NPV of $3,200 as well would be about $8.2 billion. So specific changes, I guess, from the base case that we put out earlier to this expansion study. Underground rates, we're looking to take those from 2,400 tonnes a day to 3,000 tonnes a day, olden pit operations will go from 10,000 tonnes per day to 17,000 tonnes per day. Expansion in the base case, we added at 12,400 tonnes per day. We're looking to basically twin the existing mill complex and bring it up to a full capacity of 20,000 tonnes per day. So the big driver there really has been the mineral reserve. There's been a lot of drilling going on over the last while certainly that Scott will touch on as part of his presentation. But in the base case, we had about 6.3 million ounces in reserves for that study. We've grown that by about 30% now. We brought it to 8.3 million ounces, which are now in the expansion study as of February of 2026. So significant upscale ever in our reserve base. Looking at it in a bit more detail. You can see the Island Gold mine. Looking at the June numbers versus December, so year-end reserve numbers. We've gained about 1 million ounces on the reserve base. And on the Magino side, similar level, about 900,000 ounces of gold has now reported into our reserve base from where we were in June to the December 2025 statement. So overall, combined for the district, about 1.9 million ounces. So we've had a really successful reserve conversion over the last certainly year. And we've got -- as Scott will touch on this, there's some tremendous ongoing exploration opportunities and success that we expect to drive growth even further in this district for the long term. And we're looking to spend a record amount of money actually on exploration in the district in 2026. So a life of mine looking at the expansion study here, as I mentioned, 534,000 ounces on average for the first 10 years. You can see in gray, which would have been the base case in the bar graph with regards to the production profile versus the expansion study now in orange. So significant improvement. Overall, all-in sustaining costs similar to the base case, running at about $1,025 per ounce and the reserve life of 19 years. So similar to the life of mine, despite the higher production rates. And again, obviously, the growth in the reserve base helps that. But I think what I really want to point out here is the back end of this production profile, when you start to look at 2037 beyond to 2044, as production starts to drop off, we would expect to actually fill that with other targets. And Scott will touch on that with regards to his presentation. We see -- we certainly see this asset carrying well beyond the 19 years that we currently have in our reserve base just based on the exploration targets and certainly, the growth potential and the growth that we've seen at Island since we acquired that operation in 2017. So just looking at the reserve resource growth, as I touched on, we acquired the Island asset in 2017. So you can see the significant growth that's occurred basically from 2017 to where we are in 2025. If you look at the Phase III study that we put out in 2022, which would have been based on the mineral reserves at the end of 2021, we've seen about a 284% growth in our reserve base over that period of time. And we certainly don't expect that to stop as we continue to drill. We expect to continue to convert, obviously, our resource base into reserves, but also find new resources that will eventually end up in our reserve inventory. Our conversion rate over that history has been greater than 90%. So it's been a very, very high conversion rate, and we would expect that to continue as well. And certainly, from a discovery point of view, it's costing us about $14 per ounce to discover those ounces. So Scott and his team have done a fantastic job on that front. So this is one of the main areas of the growth that's occurred with regards to the reserve base. So this is the Island East that we referred to. You can see the grade there running at about 15 grams, about 1.6 million ounces. So this has been a big part of our growth with regards to the reserve inventory that we've taken from where we were in the base case to the expansion study. And some of the highest-grade intercepts that Scott will also touch on as part of his presentation. So -- the one big benefit certainly within this region is where we've seen a significant amount of growth from an ounces and grade point of view is really well centralized to the production shaft that we're putting in place and will be as we continue -- to continue to expand on this because it's still open at depth, open to the east, and we expect this to continue to grow over the longer term as we continue to drill it. But from a production point of view, it will be very efficient for us to be able to mine in this district, bring it into the mine plan and use our hoisting infrastructure to be able to generate the ounces on an annualized basis. A bit of a chart here that kind of shows Canadian mines throughout the country. But I mean, really, the story here that I'm trying to demonstrate, if you look at the Island Gold December 2025, that's boxed out over on the right side of this slide. Really, what we're demonstrating here is that it's been there. Island has been there for a while and continues to be and continues to grow, but looking at it on the basis of being one of the highest reserves and one of the highest reserve grades for any underground gold mine in Canada. And we've been there for a few years, and we expect, obviously, with our continued exploration success that we will certainly continue to demonstrate this, if not even continue to grow or even higher over the long term. From a valuation point of view, it's a growing valuation. John has touched on this a little bit in some of the comments. But since we acquired it in 2017, had a valuation of $551 million to where we are today with this expansion study that we've now released at a $3,200 gold price, you're looking at $8.1 billion. Take that to a spot price depending on what the spot price is today because it's very volatile. But at a $4,500 gold price, it's got a valuation of $12.2 million. So it continues to grow. It's been a great story, certainly, for the company. And with the exploration that we continue to develop within this region and look to explore and looking to bring other sources of feed into this larger mill complex that I'll touch on in a minute, will be a big benefit for the long term with the opportunity to continue to grow that valuation for the Island district. Regarding GHG emissions. So the graph here kind of shows what the sector average is at about 0.79. Currently, we sit at 0.55. So we're about 30% below the industry average. With the expansion that we're undertaking here, and looking to bring that online, there's a couple of key drivers there that are going to lower our overall GHG emissions intensity actually down to about 0.24. So a further decrease of about 56% and really driven by 2 things. One is the completion of the shaft. So we're getting the production shaft online. We will eliminate the usage of the majority of the haul trucks that we have currently in our fleet. So we're reducing the overall truck fleet, which reduces our diesel footprint. And the other side of it certainly is grid power by the end of 2026. So getting off of that CNG compressed natural gas and going to grid power starting at the end of 2026, we'll also have obviously a big benefit on the emissions intensity. So with that, I'll turn it over now to Chris Bostwick, our Senior Vice President of Technical Services, to walk us through a bit more detail on the expansion study.

Okay. I'm going to reiterate a couple of things here that Luke's already covered. So what we're showing here is the base case like the mine that we presented to the public in June of 2025 compared to the expansion study on a bunch of key financial metrics. The first one I want to look at is as Luc mentioned, we'll be at 534,000 ounces a year from -- for the next -- for the 10 years beyond 2028. If we look back to the base case, we would have been at 419,000 ounces a year. We'll be doing about 534,000 ounces a year at 1,025 ASIC. And life of mine will have an average all-in cost of capital, and that's growth capital, sustaining capital and operating expenses of $11.55 an ounce. And looking at our decision price of $3,200 gold, that's a $2,000 pretax margin. Some other key things that Luc talked about is the $8.2 billion NPV at $3,200 gold and $12.2 billion in NPV at $4,500 gold. Some of the key assumptions in the life of mine plan are obviously the reserves. We've had a significant reserve increase, a 25% increase at Island Gold and a 40% increase at Magino over what we presented midyear last year. Long-term throughput of 20,000 tonnes a day and a long-term gold price of $3,200. Key changes. Obviously, the increase in reserve underground going from 2,400 to 3,000 tonnes a day, nominal ore mining rates at Magino going from 14,000 to 17,000 tonnes a day. With that increased underground reserve, that we saw that 30% increase in the underground reserve, we're going to require additional underground development. About 40 kilometers of development over the previous plan. About 4 kilometers of that development of that 40 meters is attributable to geotechnical reasons we are -- has been mentioned earlier, we're going to offset the critical infrastructure a little bit further from the ore body. That side a little bit to development. So we've increased outside of that development by about 27% for a 30% larger mineral reserve. Obviously, expanding the mill to 20,000 tonnes a day from current levels and 12,400 expected in the previous plan. To do all this increased mining rates for both the underground, we'll be adding equipment, both underground and in the open pit. As well, we need additional tailings capacity over and above what we previously had. So we'll be adding 2 more lifts during the life of mine. That's for a 45% increase in ore tonnage. Two additional things that we'll be doing that are new to this study is we plan on adding an airstrip at the mine site. This will cut down travel time for employees getting to the site and also increase our availability of the ability to get our employees to site and some of the bad weather that we experienced in the Wawa Airport. And we'll be adding a water treatment plant that's combined to process and treat water on the entire site. Much of the components of the -- this expansion -- planned expansion are already derisked key permits, federal permits are already in place. The were permitted to mill up to 35,000 tonnes a day and construct a tailings dam up to 150 million tonnes in capacity. Our phase -- the first portion of the overall expansion is obviously our completion of our Phase 3-plus expansion, and it's well on track to be completed in Q4 of this year. Shaft sink is at 98% of planned depth. So now we're at the 1,350 shaft station, concluding some off-site -- off-shaft development there. And we've got about 30 meters more to sync in the actual shaft. We'll be completing that this quarter in 2026, and then we'll move on to equipping the shaft and converting over the head frame from syncing to production node. [indiscernible] completing the shaft infrastructure. The pace plant will be commissioned or completed in Q2 of this year and commissioned in the fourth quarter as the shaft comes online. And then the existing mill expansion is well underway towards the completion of the 20,000 tonne a day mill. So you see actually here in this photo, we've got a number of the tanks already constructed. We've got the steel up for the mill. This is a few weeks old, we're progressing on the clouding on the mill. So we're well on the way there. From a risk perspective, we're out of the ground. That's a key area where some projects go over on time and budget is on earthworks were well out of the ground, and we've got all the steel up. The shaft infrastructure and the pace plant that we're installing is sized -- well sized for 3,000 tonnes a day or target mining rate at the end of the expansion. And the other thing we're doing and putting into derisk the project is 115 kV power line, which will be finished by the end of the year. That will give us more than enough power for the expansion and anything else that comes along after that. Permitting. We've got all the required permits in for the current operation. We are fully permitted for that. We've done a number of both Magino and Island on a number of ECAs or environmental compliance approvals over the years as well as a number of closure plan amendments. And then Magino, as I mentioned, we've got the federal permits in place for a bigger mill and a bigger tailings dam. So to get the overall project permitted to our expansion plans. There's just a number of normal course permits required a couple of ECAs and another closure plan amendment. We're well versed of those. We've done numerous permitting procedures and applications in Ontario, both YD and Island Gold. With respect to the shaft infrastructure, you've talked about the shaft sinking is 98% complete. All the electrical infrastructure is in place. [indiscernible] has been completed. Warehouse completed. Paste plant will be depleted in Q2, and the admin building and dry complex will be completed this summer. Paste plant, just touch on the capacity for 3,000 tonnes a day. One of the things that the employee pace on the ground enables us to do is to increase our overall mining recovery underground. Over the life of the line, we anticipate being able to get about 230,000 ounces more recovered than we would have without a paste plant. And the biggest thing is another big thing is an elastic faster stope cycling times, which will support our higher mining rates of 3,000 tonnes per day. And it obviously increases our geotechnical stability underground. And other thing to note with respect to tailings is about 65% of the tailings at Island underground will produce will go back underground as pastefill. Shaft is designed for the future. So we've got overall at 1,379 meter depth. We've got a 5,500 tonne per day capacity of ore and waste. We only require life of mine average of about 4,700 tonnes per day ore waste that's not considering any co-disposal of waste within pace fill stopes. It's got the ability to -- we have the ability to think that shaft deeper up to the 2,000 meters, the hoisting plant can accommodate that. 2,000 meters are overall hoisting rate will drop a little bit. We've got other options. Looking at this long section, we can see the deposits open both at depth and laterally. So if we were to find significantly more in the future, that depth and not early, we'd look at our options for accessing that it could be deepening the existing shaft, adding a wins to go deeper. From a power perspective, where our site currently needs about 30.5 megawatts, and that's being supplied for the -- through the CNG plant and an existing grid power. Yes. Going forward, we're going to require -- with the expansion, we're going to require 55 megawatts of capacity. We have the existing grid power. We're putting the new line in that will be commissioned at the end of this year, and we'll get 47 megawatts off of that. One thing to note is that line is cable new line is capable of supplying up to 85 megawatts for future considerations at Island Gold. As was mentioned earlier, when we put that new power line in, we'll be able to drop our processing costs by about $5 a ton due to being on grid power. And we'll have the CNG plant at site as a backup. Tailings, as mentioned, we are permitted up to 150 million tonnes at a federal level. We will only require, I think, about 115 million or 117 million tonnes with this expansion. We're currently running the island mill, and we will be running the Island mill in 2026 and 2027. We plan on starting to put the tailings from the Island mill into the Magino tailing dam later this year and then shutting down and decommissioning the current island tailings dam. Yes, as mentioned earlier, we've added a couple of additional lift to the Magino dam to cater for this increase in reserves. Looking -- just focusing on the Phase 3 expansion in the capital to date. Our estimate for completion is $835 million. If we look at what's been spent and committed, we're -- 91% of that is spent and compete. So there's not a lot of room there for increases or overruns and capital. We've already spent most of it. With respect to the overall schedule, we've got a shaft sinking completing in this quarter, equipping for the remainder of the year. Shaft will be operational in Q4 of this year. And the underground ore waste handling system will also be in place at that point in time. We've got a little bit more work to do on the crushing side of things that will go into Q2 of 2027. But we will be hoisting ore in Q1 through the way side of the system. Power grade, as mentioned, will be completed at the end of the year. Paste plant, mid year. And then the actual Magino expansion to 20,000 tonnes a day will be completed in Q1 of 2028. We'll be ramping up through Q1 to full production for the remainder of 2028. With that, I'd like to hand it over to Austin Hemphill, our General Manager at Island Gold.

Well, thank you for that, Chris. I appreciate it. I want to start off and cover a little bit on the mining processes we're going to be using during this expansion phase, since we put the base case out last year, the biggest change we've seen is a bit of growth in our reserve base, both at the Magino open pit as well as the Island Gold underground. As you can see in that long section, the brown area is the reserve pit. So this is what we're planning in part of our expansion studies currently, with the purple and gray being our resource bid. So there's still some future growth potential there. Bringing your attention to those gray areas you see as well, those are the historic workings from the old Magino underground. As you can see they're kind of centrally located, but a significant portion of the pit is below those existing areas. So the majority of the expansion from Magino is more of an incremental approach. We're going from a 14,000 tonne per day production rate that you saw in the previous study up to 17,000, with the big difference being that our peak is now reaching about 100,000 tonnes per day ex pit with an average around 80,000. It's a little bit of an incremental increase versus what you saw last time. But the big thing here is, is just more, like I said, an incremental growth. We're adding more trucks and additional shopper and some more bench drills just to support our increase in production. Again, it's very much very similar to what you've seen previously. I go to the next slide here. Island Gold, is we wanted to cover a little bit as we've known we're getting deeper, we knew we're going to be increasing our production intensity. We were changing how we're approaching our stoping fronts. So historically, in the upper minds, those of you who are there, probably familiar, we entered the ore body on a given horizon in the center. We develop our way out to the periphery and then what we call we treated towards the center. Now while that's very effective in the upper areas, in lower mining intensities that historically in gold experienced. The problem is it does concentrate the stress towards the center of the orebody near central access. Over time, we've transitioned to a more common approach, a bit more practical approach where we actually are developing from the ends of the resource on a given horizon, then developing ourselves towards the middle and then we're treating our way outward. But that gives us the benefit of actually shedding the stresses outward. So we keep them away from the production area. The vast majority of our production in 2026 onward is under the new methodology and the new regime, where we're better able to handle the stresses. So this has already been an approach. It's well understood. It's very common throughout the industry. And we'd already adopted these changes. And just as we continue to develop, we'll continue to explore these new options or exploit these new options. And again, this is part and parcel to our expansion of the 3,000 tonnes from existing 2,400 very similar to what we had in the 2,400 case, albeit just more of it. Just kind of show you a bit of the long section here. As you can see the shaft and the central point, and this is going to be very common to what we talk forward here. I just want to bring that as a point of reference. As Luc touched on, we have a lot of potential down to the east on the kind of the right side of that drawing. And that's a big area we're going to be focusing on is right now, we've only got the development around the shaft and the specific infrastructure. And we're going to continue to develop ourselves outward. And that's really the key to how we're increasing our production rate from the previous 2,400 tonnes a day to the 3,000 is to accelerate our development rate, provide ourselves access to the larger and expanded reserve base. And then once we complete that development rate, we now have more developed inventory, we can then start to produce from those areas. And again, much like we talked on the Magino, it's more of an incremental approach. We're adding additional fleet. What we're looking at here mainly is to handle the material. So you can see there's 4 scoops or LHDs, 3 bolters again to support the accelerated development rate, one additional haul truck for a period of time, one jumbo and one additional stope drill. So again, it's just an addition to our existing fleet to handle the additional tons. And the ramp-up we're looking at doing is basically by the end of 2028, we'll be at the 3,000 tonne per day rate. As I'll cover on future slides, Scott show you and explain you how we get there. Now this is a bit of a complicated one, talk to the drawing on the right. As you can see the orange development, that's our existing development with the gray being the plan development. As I mentioned on the right-hand side, you can see the vertical shaft, you can see we have very little production development around that area right now. This has always been our plan was to develop that area and part of our expansion case from the 2,400 to 3,000 tonne a day rate is to increase that development rate, as I mentioned before, to provide us access to the inventory there and then support the increased production. To put some numbers to it, when you saw the case last year, it was about 4.1 million tonnes -- 4.1 million ounces in underground reserves. We're requiring about 129 kilometers over the remaining life of the mine -- or from 2026 onwards to provide access to and support the production. Since then, we've increased that reserve by 25% to over 5 million ounces. And it's only requiring an additional 40 kilometers to provide ourselves access to that additional inventory, which, as I mentioned, we'll be spending about $166 million on increasing our development rate just to provide ourselves access to it sooner and only about $23 million, and that's a slight increase in equipment fleeting. As we talked on here, this is kind of the ramp up schedule you see. We talked before there. We've taken a bit of a conservative approach on '26, but then we go back into 2027, we're right back on target of the 2,400 tonnes per day as we continue to focus on the infrastructure, specifically around the ore and waste handling. As Chris touched on at the end of this year, we'll have the shaft, which will be -- allow us to start skipping ore. And then towards the middle of 2027, we'll complete the ore and waste handling, which gives us the next incremental increase to now hoist all of our material. And once we do that, as you can imagine, that then drops the intensity on our haulage fleet allows ourselves to allocate that fleet deeper into the mine to focus more on the development side. And then that's what will be the cornerstone for us in 2028, we begin to ramp up. It's a very steep ramp-up from the 2,400 tonnes per day to 3,000 tonnes per day, which will reach in the latter part of '28, and we'll be able to maintain for the rest of the reserve life, as you can see all the way up until 2040, where we basically receded what we have in the reserve books. And again, this is assuming 0 conversion of any of our inferred resources, which as was covered earlier, we've had quite the opposite history on, we've had a very high level of success in the conversion. So we take a look at this. And also, as you can see, we have a very -- we maintain our at least reserve average for the first 10 years of this, including this year. and we're able to maintain that all the way to the latter part of the year, and we're averaging about 10.6 grams per tonne ex underground. And again, this is all based upon ourselves being able to basically hold ourselves to reserve average. Now the big thing we take a look at as we go over to Magino. You see it's a bit more of a gradual ramp up. The big issue we have is we want to make sure that we basically liberate the ore tons once we have the ability to process them. Once we get the expanded mill, you can see that we can satisfy the need and we continue ourselves in a ramp-up. And again, much like an incremental stage, you can see is a gradual increase over time as we started the pick is bigger. We start going deeper into the pit. Haulage intensity picks up. We just start allocating the additional fleet to it on an as-needed basis to support our increase in production, which, again, we're able to maintain all the way into basically into the reserve life. Big important thing I want to bring your attention to is we only hit that -- we hold that 100,000 tonnes a day ex pit for a number of years. And again, it's all just basically based upon incremental fleet increases. Last a little bit here on the Magino side, as you can see, we hold ourselves much around the reserve average. There's a little bit of bump around there, but we hold about that 0.87 grams per tonne. I just want to remind everybody that this is a combined ore grade. As you remember, we bias ourselves. We process the highest grade first. So any of the stuff coming ex pit, whether it be our high greater migrate, we process that first, we stockpile the lower grade material. So you'll see some of the differences in change and you'll see that's how the grades will vary a little bit over time. The important thing, as you can see, we maintain ourselves a pretty steady-state production rate. Also, a bit from the blending perspective. As you can see on the left-hand side, where we're under much our existing scenario, running the 2 mills, both the Island Gold mill as well as the Magino mill. And as we complete the expansion case in 2028, you see we basically fill that mill and we maintain that production rate until we've exhausted our inventories. A bit here, take a look for the expansion of the cost profile, the big thing you look at is the 10-year in the middle of it when we're kind of at peak production. We're producing about a little over 500,000 ounces, and we're maintaining all-in sustaining costs for the site just over $1,000 to $1,025. If you look at the 15-year average, while we're running basically both mines, again, is 490,000 ounces, and it's about a $1,032 for an ASIC. So again, it's a very attractive cost profile and you can see it's a stable production profile as well. I want to touch on the milling side. It's just kind of a quick synopsis of how we're going to go step by step through the expansion in the mill cases. Our current case right now, as we've touched on before, we're running both mills, both at the historic Island Gold mill, which right now is limited through permits to 1,265 tonnes per day. Again, that's an annual average. So we have some flexibility on that within specific periods with the balance going to Magino. Right now, we are mining at a higher rate than what the Island Gold mill can process. So the surplus we're doing, we're in cumulating and island and we're transferring over to the genome processing and batches, much like can we did for a number of months last year. In 2027, the mine will -- the underground mine will ramp up to 2,400 tonnes per day. Again, we'll still continue to blend them both through the existing Island Gold mill as well as the surplus from Island going to Magino. And then finally, in 2028, and the completion of the expanded mill, we started transitioning all ores to a single milling facility. And over time, we'll ramp up until 2029, we achieved our 20,000 tonne per day processing rate, which will hold, as I mentioned before, for basically the balance of the reserve life. Okay. That's it for me, I will turn it to Chris.

So I'm just going to quickly go over operating costs for the expansion plan. What we're showing here is we have 2026 anticipated unit operating costs at Island. The base case from last year what we were anticipating for operating costs, unit operating costs and then the expansion. What we're seeing is that we expect cost to decreased substantially from what we're experiencing and expect in 2026. I've got a few slides we can go through each of the individual ones here in a moment. One of the things -- the other one thing that's immediately noticeable here is that our costs have increased slightly over what we were expressing last year in most of the areas, except one. And that's attributable to reflecting inflation and some of the other things that Luc and Greg talked about adding to personnel critical spares. All of that sets us up for success to go through the expansion. So the one area where you see a decrease in our study over study in 2026 is the admin and that's a result of us increasing tonnage, more tonnes over what are more or less fixed cost. So we see unit cost business those costs going down. If we look at on our underground mining costs, we see a significant or very large drop going from 2026 to 2027 in our underground mining costs, and that's all attributable to the shaft. And it's attributable for a number of different reasons. The shaft allows us to get more air underground, which allows us to operate more equipment, which in turn allows us to produce more. The shaft also allows us to get that extra material out of the mine. The shaft also greatly reduces our haulage requirements, which is our single biggest unit operating cost underground is hauling -- currently hauling from underground to surface we'll be hoisting. So we're running about 18 trucks now will more than have that. with the Shaft on place. And another very critical or key aspect of the shaft is travel time to the work place. A bunch of you who have been to Island have experience said 1 hour drive down the ramp to the bottom of the mine, while every month is getting even longer as we get deeper. So -- but it's -- we're going to be reducing probably 2 hours off the travel time of every single employee that goes underground when we put the shaft and they'll be at their work face in 15 minutes, which greatly enhances productivity and allows us to get to those -- both the mining levels in production and the development levels that we're anticipating. On the open pit, we see another dramatic reduction in going to 2027. We're currently operating in kind of a hybrid mode with respect to maintenance in the Medina woven pit due to a lack of previously a lag of a truck shop. We did not have a large maintenance crew there. We're relying on vendor maintenance from our various equipment vendors, which is substantially more expensive than doing owner maintenance. We -- by the summer, we'll have that truck shop in. We're already in the process of ramping up the hiring of our mechanics and electricians to work on the mobile fleet. So we'll see a reduction in there. Over time, we see the mining cost in the open pit further reducing. In that sense, we do the expansion -- or the ramp-up in mining, it becomes canine scale gets cheaper and cheaper as we increased our mining rate. Beyond 2033, we can see some slight increases there. As has been mentioned, we're going to be -- we've got about 40% more reserves at the Magino pit, at the same strip ratio of 40% more waste to place that was, we've got to go further out away from the open pit and our cost will slightly increase over time at that point. On the milling side, we see a substantial reduction through to 2028. That's due to a number of factors. The first factor is bringing the end of this year, bringing the 115 KV line online, which will reduce our processing cost by $5 a tonne. At the end of '27, we will shut down the high-cost Island Gold mill and be exclusively processing through the expanded Magino mill, further bringing costs down. We go out to 2039, 2040, '41, is when we currently anticipate with the current reserve Island closing based on current reserves. And we will stop having to haul or from the island shaft or the Magino, which incurs about an $8 a ton transport cost for the island or over Magino. I'll hand it over to Luc there to talk about capital.

Thanks, Chris. Okay. So I'll just review a few of the slides with regards to the expansion study and the capital associated with that. So site layout, the -- what you're seeing there in yellow is the reserve pit for the Magino side and over to the right is the Island Gold deposit, the reserve base projected to surface. So you can see close proximity of the 2 reserve basis. With regards to the expansion itself, we're basically twinning the mill complex. So the existing mill -- as you can see, it's labeled in the orange box this year, which references the primary crusher, secondary crusher in the existing mill itself. The blue boxes that are labeled in there are the new components that we're adding as part of the expansion. So the new circuit will have a capacity of 10,000 tonnes a day. We'll be looking to blend the high-grade underground ore coming across from Ireland as well as about 7,000 tonnes once it's at full capacity from open pit operations to run the plant at 10,000 tonnes per day. And then the existing mill will continue at 10,000 tonnes a day to process strictly the open pit ore. So just to provide a bit more detail here with regards to the progress to date. You can see the -- on the left -- the foot on the left, which is a photo from January 2026. So that's a new mill building sorry, Chris touched on this. So the earthworks are completed. The foundation work has been completed. So a lot of that's been derisked from a capital perspective. as we touched on, you can also see the new leach tanks, and that left photo as well. There are 6 of them currently install. There's a couple more to complete to get that the full capacity we're looking for. And the bottom photo on the bottom right is the truck shop. So that's something that we'll look to bring online mid this year, and we'll be able to service more properly all of our fleet of equipment for open pit operations on site with a truck shop to be able to maintain the fleet. The -- so this is a flow sheet of the expansion itself. So it's 2-stage crushing. We're going to have a primary crushing will be gyratory followed by a con crusher. 2-stage grinding, so we'll have a Sag mill ball mill, very similar to what the existing mill is currently followed by leach, CIP elution, electrowinning and gold ore. So some of the key changes to include, as I mentioned, the crusher. We're looking to add 2 fine orbins. We currently have a 10 arrangement on the existing bin in this new complex, we're going to actually add 5 orbits -- to find orbits to provide mill feed into the mill. As I mentioned, 8 tanks solution and a larger gold refinery to handle the higher gold content coming into that mill complex with the high-grade ore coming from Ireland. With regards to the existing circuit, there are some benefits that will occur as a result of this expansion as well. We've talked about that. Some of the questions in relation to consistently delivering the 10,000 tonnes per day through the existing plant. We've got that modification that we're making with that secondary conveyor feed to make sure that we continue to keep that mill fed on a continuous basis when we have scheduled maintenance, both with the primary and secondary crusher. So that will certainly be the fix in the short term. In the longer term, really, what we're looking to do is the benefit of this gyratory crusher will actually be feeding from a primary crushing point of view, feeding both the existing mill as well as the new mill. So we would look to -- in the photo on the right, you can see the truck dump for the open pit feed. So that's open pit feed coming out of the operation dumping directly into that gyratory crusher, handling all of the crushing requirements. And then from that point, there's a split on the conveyor system. If you look at the photo on the left, you can see a gray conveyor gallery as well as an orange conveyor gallery. So the orange conveyor gallery is going to the new cone crusher, which will then feed into the new mill. The gray conveyor gallery will be feeding into the existing conveyor structure, which will go into the cone crusher and then into the existing mill. And you can also see in that photo on the right, the underground feed coming from Island will have a separate tipping point. So it's not going through the gyratory crusher. It will be just fed at that point because it's already sized and crushed underground from the underground operations over at the island side. So when it arrives here, it's already had its primary crushing completed. It will feed into a joint stream, commingling stream with the open pit ore as well as the underground ore to feed into the new mill. So we'll get the benefit of a better setup really than what we currently have right now with the existing setup for the primary crushing. So this will be a longer-term solution to be able to consistently deliver 10,000 tonnes a day out of both streams. The other aspect of it will be new ore bins. So in the photo on the left, you can see where it's labeled new ore bins. Those are new ore bins that will be dedicated to the existing mill complex. So again, this is another area that we've seen with our operation practices that we've been running this complex over the last 18 months, some deficiencies with regards to that feed arrangement with the [indiscernible] arrangement, feeding into the grinding circuit, creating some issues with consistent feed. Adding the bins will provide a more consistent delivery from a maintenance perspective as well, that will allow us actually to be able to take one bin online, work on the [indiscernible] feeders when scheduled maintenance is required or the other bin, vice versa versus the current arrangement that we have with the [indiscernible] facility where they're in series. So you basically have to take them both down if you need to do some maintenance. So it will give us more longer-term operational flexibility as well to maintain the 10,000 tonnes per day through the existing plant for the long term. Schedule-wise, so we've touched on this a bit, but really, we've -- you can see in the photos, that's the new mill complex itself. And as we've already mentioned, earthworks are done, foundation work has been done. So we've progressed quite a bit and de-risked it quite a bit from a point of view of being able to meet the schedule. So the big heavy lifting certainly is through the '26, '27 period with the intent of bringing the expanded 20,000 tonne per day mill complex online in Q1 of 2028. So looking at the financials a bit on the capital. So this is looking at total capital. So this is in comparison to the base case which would have been the June tech report versus what the expansion study shows now currently. Our total growth capital is about $704 million, adding the life of mine sustaining capital in there brings it to a total of about $3 billion for a total production base of about almost 8 million ounces. So what's really driving that increase in capital is the mineral reserve, obviously, has increased by 45%. We're doubling the milling capacity with the expansion, obviously, with the second mill at [ Magino ], accelerated underground development that the teams touched on as well as adding additional fleet, equipment fleet for both underground and mobile support for the open pit operations as well and the aspect of ongoing inflation, obviously, from the base case numbers that would have been put out. But from a capital intensity point of view, you can see extremely low at $393 per ounce, with the all-in sustaining cost of $1,155 per ounce. Looking at it on the basis of growth capital alone. So you've got the Phase 3 up on the first line item there. So the expansion is pretty well in line, but about $162 million based on the expansion study. It's really around the Island Gold District expansion, which is primarily the mill, the accelerated development and equipment required for both open pit and underground ramp-up. So about 70% of that is related to the mill expansion, mobile equipment and infrastructure. The other 30% is related to accelerated development to support the mining rates getting to 3,000 tonnes per day. On a capital intensity point of view, about $91 per ounce. And then looking at sustaining capital relative to the base case. So it's gone from about $1.6 billion to $2.2 billion on the sustaining capital aspect. Driver there, obviously, is the mineral reserve, largely mineral reserve and underground development increasing by about 25%. As I mentioned, we've added some equipment to the fleet. The tailings lifts that are required to support the larger reserve base. And we also touched on this air strip for construction that will be part of this expansion study. And this is really to get us away from Lake Superior. The Lake effect has a lot of challenges for flights to be able to get in and out in the winter months as well as the summer months, getting away from Lake Superior, having an air strip closer to the mine site will eliminate a lot of that -- a lot of the challenges that we have for air service and provide more reliability for getting people in and out of the site on a continuous basis for the long term. If you add reclamation and capital leases in there, it brings the total to about $2.3 billion over the life of the project. And again, from a capital intensity point of view, pretty well aligned with the base case at about $302 per ounce. So consistent with that base case life of mine. I think with that, I will turn it over to Mr. Fisher.

Thank you, Luke. Just a couple of slides to wrap up the economics around this expansion project that we've been speaking to. This slide has been shown on a couple of different slides throughout the deck. Really, what we're trying to show here is the comparison of the base case of the expansion study, and you can see the economics are quite superior. At -- I won't focus on the production and cost metrics because those have been discussed on a number of different occasions. But if you look at the NPV and the IRR, which is what we're focused on when we're making investment decisions, the NPV of this project is $8.2 billion at a pretty conservative gold price of $3,200 per ounce. And at a gold price closer to where we are now of $4,500 per ounce, it has an NPV of $12.2 billion. And if you put that into perspective, stepping back in 2017, we acquired the Island Gold Mine from Richmont. 2024, we acquired Magino from Argonaut -- Richmont previously, Argonaut with the Magino acquisition. Total acquisition cost was $1.4 billion. So we've put money into the ground every year to grow that resource. We've been expanding the asset. And all of that money that we've been spending on expanding the asset and growing the asset from a resource perspective has all been paid for by the cash flows coming from the Island Gold District. We haven't put another dollar into the site from the corporate [indiscernible] perspective. So when you do the comparison of what we've spent to acquire this asset to where we are now, it's a growth of over $10 billion in value being generated given the exploration success and the growth of this asset. And then from a return perspective, very attractive returns, IRR of 53% at $3,200 gold and an IRR of close to 70% at $4,500 gold. And the way we looked at IRR on this project was comparing the expansion study where we have the 8 million ounces ramping up to 20,000 tonnes per day, comparing that to the scenario where it's status quo, where we have 8 million ounces of reserves, and we run that out using our existing infrastructure of a 10,000 tonne per day mill -- or sorry, 12,400 tonnes per day. So it's really looking at what's the benefit of bringing that revenue forward from both the open pit and the underground. And you can see that the returns are pretty significant. Looking at the cash flows at a $3,200 gold price environment, we are generating positive free cash flow over the next 2 years as we ramp up this asset and continue on this Island Gold District expansion to 20,000 tonnes per day. But then when we hit that run rate in 2028, we see about $800 million in free cash flow every year for the next 10 years and cumulative free cash flow over that period of $12 billion. And then when we look at the $4,500 scenario, again, a ramp-up in the cash flow in '26 and '27, but we hit that sustained rate of $1.3 billion in after-tax cash flow coming from this asset and cumulative cash flow of $18 billion over the life of the asset. So like any gold project, the biggest sensitivity is going to be to the gold price. We have all the different scenarios listed here. I'm not going to go through them. I think what's important to note is, this is a project that you would build in any gold price environment. It's attractive returns at the $2,800 gold price environment and even more so at a $5,500 gold price scenario. I think the -- and with the payback being less than 2 years. I think the other thing that's important to note is when we were analyzing this, we first looked at does the expansion of the open pit, is that paid for by the open pit alone? So, the expansion of the mill, is that paid for by the open pit alone? Because what we know that we could expand that underground to 3,000 tonnes per day regardless -- who expanded the pit. We wanted to make sure that the pit expansion itself made sense to do, and it obviously did. And then you layer on the value of bringing forward revenues with expanding the underground rates, and you can see that the returns are quite significant. I think maybe the other point to show here is at a $4,500 gold price scenario, we have a value of $12.2 billion. If you look at our market cap right now, we're about USD 16 billion. So more than 75% of our market cap right now is supported by the Island Gold District, and that's based on what we know now, and we know it's continuing to grow. So what are we trying to turn the Island Gold District into? I think it's pretty clear we're trying to make it one of the largest, lowest cost and longest life assets in Canada. If you look from when we get to that steady run rate in 2028, we'll be producing 530,000 ounces a year. That makes it the third largest operation in Canada. From a cost perspective, it would -- at just over $1,000 per ounce, it would be the third lowest cost asset in Canada. And then from a profitability metric, which is obviously important to us, it would be the second most profitable asset in Canada. And therefore, we're really putting this on par as a top 3 asset in Canada along with [indiscernible] and [indiscernible]. And as we look to expand our Canadian production with the completion of the Island Gold District expansion to 20,000 tonnes per day, that will bring our production in Canada to 700,000 ounces a year. You layer on Lynn Lake completed in the first half of 2029, and we're closer to 900,000 ounces a year. So it's close to 90% of our annualized production is in Canada, which is the jurisdiction that we want to be in. So that firmly cements us as the second largest gold producer in Canada and quickly closing the ground on Agnico. I was hoping for some chuckles there, at least. So I mean, in closing, before we get into the exploration, we're talking about the Island Gold District, the new Island Gold District. We had the base case that we put out in the midyear. We said that was a placeholder. We knew when we acquired [ Argonaut ] that there was something bigger here. This is what we see now. We see that we can grow this asset to 530,000 ounces a year. It's an all-in sustaining cost, that's $1,000 an ounce and a big valuation. It's a Tier 1 asset by anyone's definition. But John made the point earlier, this is -- this is the way station. As we start to look at the exploration upside that this district still has, a very under-explored district, we're going to see a lot more success as time comes. And I wouldn't be surprised if a number of years from now, we're doing another expansion study where we're talking about where this is growing from here. With that, I will pass it on to Scott to talk about some of that exciting exploration.

Thank you, Greg. Just an overview of what I'll walk through today. I'll start with a high-level exploration strategy. I'll touch on our '26 budget, then I'll walk through an update by asset across the company with a focus, obviously, on Island Gold and building off of what we just communicated fed into that Island expansion study. Lots on this slide, but bottom line, what's our strategy for exploration at Alamos. We obviously want to maintain and extend our mine life by replacing depletion. It's great to do. We obviously want to grow our mineral inventory as well to grow mineral reserves and resources, and we want to do that with higher quality ounces. How do we do that? We have a strong team of people leading this and executing this across our sites, all levels of the company, contributing to the success that we've had. One big differentiator for Alamos and our assets in terms of our exploration strategy, if you look at whether it's Island Gold, you look at Young-Davidson, Mulatos, Lynn Lake, these are all amazing districts that have great deposits that have just been overlooked. They haven't seen the exploration that you've seen in Qiqavik Lake, Val-d'Or, [indiscernible], Red Lake. So the exploration maturity of these districts are decades old, not centuries old in most cases, and that's the opportunity. So when we focus on mine exploration, we're expanding on amazing deposits that are well endowed that just haven't seen the exploration investment go into them. And then we also look at expanding our land packages in the same geology. And just like those deposits haven't been explored, whether it's Island, Davidson, Mulatos, [indiscernible] Lake, these are districts now that we hold that we can step out on in similar geology and have the same opportunities. And that's really what feeds our strategy. And that is a big differentiator. If you look at what the result of that has been, we've touched on this a few times, adding 8 million ounces of mineral resources over the last 7 years at $31 an ounce. That gives us operational flexibility in terms of organic growth projects. We've replaced over 2x what we've depleted out of our inventory over that period. And that's now feeding into what we're planning for 2026, which is a record exploration budget of $97 million, and I'll cover off what that we'll focus on by asset. Notably, 240,000 meters of drilling. That's a big increase from 180,000 meters in 2025. Looking at the exploration budget by asset. You'll see probably why we're spending so much at Island or we're planning to spend as much at Island in '26, again, a big increase from '25. That's focused on now getting back to mineral resource expansion. That mineral resources that we intend on defining will feed into our future mineral reserves. '25 was a big year of mineral resource to reserve conversion with delineation drilling. So now getting back to focusing on exploration while continuing to convert that remaining inferred and measured and indicated mineral base. At Young-Davidson, we're laser-focused on defining high grade that we can feed into that underground infrastructure to be really a real value add there. Mulatos transitioning to sulfide, where we've got a lot of exciting opportunities, which I'll touch on and continuing to expand on new discoveries and also testing other advanced targets. At Lynn Lake, we talked about the 9,000 tonne a day mill. What opportunities exist on that belt where we can see a potential to bring higher grade into that mine plan sooner. And that's what we're going to be focusing on in 2026. And Qiqavik is a very exciting greenfield project in Quebec, and I'll give you a highlight on that, but another 8,000-meter drill program this year, following up on discoveries for 2025. Here's an example of the results of the efforts of exploration. We've seen this slide before. But I think to point out here, this is 6 million ounces of growth that we've seen here, including what we've mined over the course of the last 8 years since the acquisition. And you can see it's -- these are just kind of check points in time when we have our year-end reserves and resources. But really, this is a consistent, sustained exploration effort that's occurred since Almos acquired this and even starting before that with [ Richmonte ], where we're now sitting at 6.7 million ounces of inventory. You can see '25 was a big focus on getting all of that large mineral resource inventory converted to reserves to feed into the expansion study. We're successful at doing that. Now the focus goes back to let's build out that mineral resource base that will be the future mineral reserves that we can convert. Stepping through year-by-year, and I'll do this fairly quickly, but just to give you a sense of how the deposit has grown over time. This is what it looked like on a longitudinal when we acquired it in 2017 from Richmont, about 1.8 million ounces. They had just at the time, started doing some deeper drilling below the 500, 600-meter level, hitting high grades. The deposit was changing. It was getting higher, higher grade as they went deeper. And then Alamos took it on and ramped up that deep exploration effort. And you can see the results of that 3 years later, we're now sitting at 3.1 million ounces and really building out that deposit at depth. Now we're at 3 years later, 2022, 5.1 million ounces, continues to grow. We're now defining high-grade reserves in the mid-mine where we had resources. You see that block at 12.5 grams per tonne, midyear this year, continuing to now focus on getting that resource converted to reserve, and you can see the change there and still expanding on mineralization. And then the current reserve and resource, you can see very successful in converting that high-grade inferred resource into high-grade reserves. And this is where we sit now at 6.7 million ounces. I think the takeaway I want you to have today is -- this is a starting point for us. I think there's so much opportunity here for this to grow, and I'll walk through a few slides showing what our exploration focus will be going forward. So there's a lot on this. This is a kind of 3D view looking at Island, looking to the north. This is every single drill hole, 9,000 drill holes that crossed the Island Gold mineralization plane, and it's 18,000 points on here that define the actual mineralization, some drill holes hit two zones. But the point here is look at the extent of the reserves and resources relative to the drilling. Really, I mean, the point to take away from this, this is defined by the extent of the drilling, and that's the exploration opportunity here given that we just has not seen the exploration efforts that other systems of this scale have seen over what could be a century. This has only been a couple of decades at Island Gold. So the extent of the ore body is currently defined by the extent of our drilling. It's open to the east, which I'll touch on, open to the west and open at depth, which we're really excited about. In addition to that main Island zone, as it was drilled over the years, you saw the growth in the deposit, we were hitting intersections in the hanging wall and footwall of the deposit. And at the time, not knowing what they were and they're pretty widely spaced. We call them unknown zones. All those now are developing into hanging wall, footwall zones that now sit in our reserves and resources and feed into the mine plan that you see with the expansion study. So those are close to existing infrastructure. They don't require a lot of development to get to them and they add more ounces per vertical meter to the deposits, just adding value with finding those continuity within those zones and getting closer to them with underground platforms to be able to drill them off to effectively put shapes around them and get confident with the geometry and extent. But I'll highlight, we have 2,000 more of those unknown zones from historic drilling sitting out there that are part of our exploration strategy. As we get platforms established underground, we'll start following up on those 2,000 composites and look to see if we can continue adding ounces in the hanging footwall. This is stepping back pretty far from the last image I showed you, but I'm going to touch on three opportunities, if you look at Island Gold and where we can find more of this high-grade mineralization within the structure. The obvious one is what I'm highlighting here. You can see the drill results at depth. So we the bottom of our current reserves and resources is 1,500 meters. Below that, we've done some deeper drilling in the past, and we intersected same style of mineralization. You can see the grades and widths there, but haven't followed up on them as we were focusing on the hanging wall footwall zones and then conversion of resources to reserves. So now we're currently back on as part of our late '25 budget and now going into 2026, following up on those high-grade intersections at depth to try to extend the deposit below 1,500 meters. The other opportunity to touch on is to the east. We did some deep step-out holes just to test to see what was there because it was a space on the canvas, and we hit the structure exactly where we predicted at 1,700 meters vertical. You can see some of the grades there. That's a 500-meter step out and it's a meaningful step out from the deposit. And then to the west, I'll touch on that opportunity, which is something that hasn't really been highlighted previously because of the [indiscernible] boundary that existed before. But now that that's removed between the Magino deposit and Island, we have a good opportunity to extend Island to the west. So getting your eye into this, this is a 3D oblique image kind of looking off to the Northeast, if you were moving topography and looking from the sky into the ground, you can see island in the distance there, dipping to the south. You can see the Magino reserve pit within the Web Lake stock, which is the host rock of Magino, dipping to the north. And what the opportunity here that I'm going to walk you through is the extension of Island to the west, south of the [indiscernible] Lake stock and the fact that it has not been tested, and that's something we'll be working on. So now in cross-section, looking to the east, you can see a cross-section through the Magino reserve pit. You can see all the drilling that's been done in this area through the center of Magino. And you can see island sitting off in the distance and you see the strike and dip of Island outlined by that red line. So if you actually project that on to the section, this is where you'd expect to see that Island main structure to the west of Island Gold deposit. And it sits south of the Web Lake stock, dipping to the south. And you can see none of the drilling ever tested that area. It's always focused on defining the Webb Lake Stock mineralization, not testing to the south of it. So this is now an opportunity where we have the ground to the south, and we'll be able to set up and test for the potential for Island to extend to the West. I think Luke showed this area earlier, and I'll kind of reiterate why we're excited about it. That area in the red box, 1.6 million ounces at 15 grams per tonne. You can see that it's open below that. It's really defined by the extent of where we focus our drilling. Some of those deeper exploration holes hitting some pretty amazing grades that look very similar to what we're seeing above. So we're excited to get -- start drilling in this area and work on expanding mineral resources below the 1,500-meter mark. The other point I'll make from this slide is those two intersections off to the right of the image, 9 grams over 2.7 meters and 4 over 5, 50 meters apart. Those were two kilometers down hole, 1,700 meters vertical. We hit the projected interpretation of that island structure, 500 meters to the east. And there's absolutely no drilling, you can see beyond the extent of what I'm showing here. So the opportunity for additional ore shoots to the east is something that we're very focused on exploring for as well. Stepping away from Island and those opportunities that exist that we're focusing on for mine exploration is what else exists nearby that could be potential sources of ore for the expanded mill complex. And one of the opportunities we see is a potential bulk mining underground opportunity is called the North Shear. So it is north of Island, east of the Magino reserve pit. This was actually discovered before Island Gold was in the '90s. And there's quite a bit of drilling on it, but the ore shoots weren't quite as continuous as what they eventually ended up discovering at Island to the south. So it really hasn't been looked at for a couple of decades until we went back in, in 2024 and did some drilling. So we're going to continue advancing this and looking at it as is there a potential here for 3 to 4 gram per tonne underground ore body that we can mine for additional mill feed to that 20,000 tonne a day mill that would offset potential open pit ore. So we'll move this forward over the next little while and see if we can define some areas of good grade continuity that can define 3 to 4 gram per tonne underground reserve. Now looking kind of stepping a bit further away, but not too far away from Island in that the mill complex. Cline and Edwards, and you saw some results come out on this a couple of days ago. And this is 9 kilometers by road, about 7 kilometers away from Island Gold. And 2 past producing mines. This was held by a variety of different owners basically from the 1920s through to present day. We consolidated this ground as part of our strategy that I was referring to where we picked it up by acquiring a large land package in 2020, and these came with it. So now we've removed land tenure boundaries. We can look at this as a gold system and having a lot of success here, we're quite excited about it. Zooming in, there are two historic past producers. The [ Klein ] mine operated in the 30s, produced 64,000 ounces, and I'll show you why that's important in a second at just under 7 grams. And then Edwards initially in the 30s and then as recently as the 1990s, producing 140,000 ounces at 11 grams. So both high-grade mines, both very limited by their fractured land tenure boundaries in terms of exploration. And now we've removed all that, we can explore. This is one system, and that's exciting. This is a long section through [ Klein ] pick. This is an area that we started revisiting in 2023 and looking at the opportunity that existed around all those high-grade zones that hadn't been mined to the west of the [ Kline ] mine, which you can see there in the gray outline, that what are the controls on mineralization, what can we do to test them and step out on them. And we started drilling. And you can see other than having a lot of labels on here, labels are good things because every highlight is labeled. But there's a lot of high grade here, and we're working now on defining the controls. And some of that is starting to pay off. We had ideas in mind, testing a big gap in about 400 meters depth, and we drilled a hole testing an idea. And sure enough, we've got 180 grams over 3.5 meters in the vein, which actually the core out of the door here if you want to take a look at it after. And then below that, and this is wide open. It hasn't been tested below 500 meters. So understanding the controls near surface, we'll work towards an initial resource estimate here, and then we'll start stepping out and testing controls along strike and at depth to try to expand the system. So this is really exciting as a potential opportunity for additional mill feed for that Magino mill. The last point I'll leave you with here is if you look at that gray area that's outlined, those are the underground stopes that were mined at the [indiscernible] mine. So those gray areas on this longitudinal represent the footprint of 63,000 ounces. So you can put a lot of those 63,000 ounce footprints on this longitudinal, and that's what we're excited about. This is a picture of the core that's outside. It's impressive grades consistent throughout the vein. You can see 219 grams, 310 grams all the way through. So it's -- I encourage you to take a look after the presentation. Now stepping way back, and the last few slides on Island, but let's look at a 9-kilometer long section, connecting [indiscernible] Edwards to the east with Island and Magino and just looking at the extent of all the drilling that's ever occurred along this section. You can see the 450-meter mark that I put in place here gives an idea of the depth. So Island Gold was a completely different deposit from 400 meters to surface and everything changed below 500 meters what we know of it now. When you look over at [indiscernible] Edwards, it's only been drilled to 450 meters and there's 500 meters and then drilling below that. So the opportunity is if we can understand the controls of [indiscernible] Edwards and then start testing deeper, these systems are typically vertically extensive. What is the opportunity there? We don't know, but we're certainly excited about it. The other thing that it highlights, I think, if you look at Island Gold, every drill hole that's ever been drilled on it. You can see how much space there is at depth, even to get down to some, say, 3 kilometers, if you were to double the extent of that, that's another 8 million ounces essentially within that Island Gold footprint. If you were to take the same footprint of an ore body, same grades and be able to extend it down to 3 kilometers, it's another 8 million ounces, plus the opportunity to the east and west along strike. I mean you can see the extent of the drilling, not a lot of it. So we're excited about that as well. And with the 3-kilometer number in mind that I mentioned, I mean, this isn't a number I'm throwing out there. You look across Ontario and Quebec, we have Campbell Red Lake operating well below 3 kilometers. [indiscernible] is another one. I think they have resources now down almost 4 kilometers, mining down just over 3 kilometers. So these deposits are vertically extensive on the down plunge orientation. Island is the same thing, very strong down plunge control on mineralization. So we're excited about the potential down-plunge, and we're excited about the potential along strike to find additional ore shoots. This is a view of our consolidation of the belt initially with [ Richmont ] having a 10,000-hectare property and then over time, acquiring a number of players in the belt to be able to now hold 60,000 hectares of very prospective geology. We're applying a systematic district scale targeting approach to understanding what controls Magino, understanding what controls Island, [indiscernible] Edwards and then taking that out and looking to see if we can define other opportunities within that 60,000 hectare land package that looks similar to those or other styles of mineralization. Really excited about the long-term opportunity there. Our 2026 budget, just to give you a sense of where we're drilling from underground. This is really leveraging our underground infrastructure, tugging on the extent of the deposit from where we have underground drill platforms. So opportunities to the east to the west, we're excited about that Island West zone up plunge towards Magino, filling in around the down plunge extension of Island West, where we see 18,000 meters. That's a really big focus. There's a lot of opportunity there that we see. And then even closer to surface, where we see the 3,000-meter boxes, that was explored 10 years ago and never really looked back on. And as the deposit continue to depth. So we see opportunities in there for potential resources that could come into reserves. And then our surface program, big program, 48,000 meters, very focused at depth, as I was showing you with almost 40,000 meters drilling at depth. And then also, I spoke about to the West and then testing that Island Gold structure to the south of Magino, starting closer to surface and obviously working our way down. So good opportunity for ramp access ore in the future from those near surface targets as we hoist 3,000 tonnes a day up the shaft, also focusing on defining potential ramp access reserves that we could perhaps supplement into the production profile up the ramp. Jumping to Mulatos. This is a very exciting stage in Mulatos history from an exploration and operations perspective. This is operated as an oxide heap leach operation for the last 20 years. we're now transitioning to sulfide with the construction of the PDA underground project and the 2,000 tonne a day sulfide mill. Our exploration team has with a very strong understanding of the geology of this region has gone out and looked at the other opportunities that could exist, and those are sulfide opportunities. So the historic sulfide intersections across the district that previous explorers and Alamos have intersected, but with a focus at the time on oxide, they kind of just put on the back burner until this point in time. We're now going in with our reinterpreted geology, pulling them off the shelf and having a lot of success. PDA, this is some of the highlights for 2025, really 2025 focused on drilling and drilling in areas in the wire frame where we felt we could extend mineralization, and that was very successful. At PDA, we're now sitting at 1 million ounces, and that's the basis of our PDA underground development project. There's great opportunity here for further sulfide mineralization. You can see from -- basically off from PDA to PDA extension, that's a couple of kilometers of strike where we know from the limited drilling that's been done, there's sulfide that exists. So that's future exploration potential, which we'll be able to more effectively target from underground once we have the underground drill platforms in place instead of drilling from service. [indiscernible], this was an oxide -- a small oxide mine that we had operated from 2019 to 2021. Revisited all sulfide intersections below that pit. And sure enough, we're having a lot of success there, came up with 100,000 ounce resource last year, stepping out from that this year, and you can see the results of that. I mean some pretty good grades, pretty good widths. And I will note as well that as you step away from [indiscernible], 2 kilometers to the north, we're drilling the same level of stratigraphy and hitting sulfide mineralization there as well. So I think it highlights the potential of the district, but also the potential of the [indiscernible] area in terms of that system. And that a little bit of oxide that was mined may have been the tip of an iceberg of a larger epithermal system. The cross-section just giving a sense of what the geometry of the zones look like at [indiscernible] Pelon. This is an exciting new discovery at Mulatos that we made in 2025. The team reinterpreted the geology in this area. [indiscernible] was an area that had been explored for at least 3 decades. This area, in particular, hadn't seen any historic exploration. But going back in here and drilling below un-mineralized rock, we intersected very high grades, and you can see the grades there. So the wide moderate grade sulfide mineral hosted gold mineralization with high grades within it. So this is early days, but exciting, this has got a good footprint. It's 500 meters in strike, open in all directions and something we'll aggressively move forward in 2025 -- 2026, sorry. Jumping to Young-Davidson. You can see on here, the red is the mineralization wire frame. That's 95% of the reserves and resources in the cyanide. It's open at depth, and we are confident we can continue expanding at depth. But we have a 13-year mine life. So our focus is improving what we can bring into that underground infrastructure in terms of grade. And there's a good opportunity here that we're already recognizing for potential higher-grade ore to come into the underground, and that's in the hanging wall. So in 2024, we discovered a zone sitting to the south of the conglomerate -- south of the cyanide in conglomerates. So a brand-new style of mineralization for Young-Davidson. In 2025, we pushed the hanging wall drift out to be able to better drill it and have a slide showing the results of that. As you step to the east, cross-section B, I'll show the [ south ] cyanide. This sits 300 meters south of the Northgate shaft, in an area way off in the hanging wall that just hadn't been drilled. So we were doing some true exploration holes out there earlier this year from the mid and lower mine and sure enough, hit another cyanide with some pretty good grades. Still early days there, but we're actively drilling and trying to understand what the opportunity could be there. But both of these are close to existing infrastructure. This is a cross-section through that conglomerate zone. You can see the 920 hanging wall drift. It's a 450-meter drift we pushed out to the south. The drill holes to drill back and confirmatory of what we're drilling from the footwall, working now on an interpretation to define the geometry continuity, but it's open up and down dip and plunges off -- the high grades associated with the folding conglomerate that plunges off to the west, and that's what we'll be focusing on as we step down lower in the mine. And then this is the South cyanide target I touched on off to the east. And again, you can see the drilling we did here in the dark lines in 2025. Again, pretty good grades and off to the south, not much drilling beyond the extent of that. So we'll continue following this zone up and down dip, but also trying to understand what's controlling some of those really high grades you see there that are open along strike and up and down plunge. We talked about the opportunity for additional mill feed at Young-Davidson. We talked about Golden Arrow, which is about 90 kilometers away. We see good potential for open pit sources of ore nearby Young-Davidson. And that's something we've been working on and are currently drilling on right now. [ Otis ] Northeast. You can see where Young-Davidson is in the image. You can drive easily to Otis Northeast. It's about 3 kilometers away. This was discovered in 1998, drilled to 2003. Then the focus shifted to Young-Davidson and nobody ever went back to Otis Northeast until recently. And certainly, good open pit grades there that have potential for additional sources of ore for that mill. And that's what we're focused on. You can see the grades. We've drilled it from surface down to 120 meters, open at depth and open along strike. And right now, we're working on filling in between that historic drilling to define an initial resource that we can start looking at from a potential open pit reserve perspective. [ Lynn ] Lake, this is again a district scale opportunity that's been consolidated. The two main deposits that we're building right now are [ Gordon and McClellan ] in the North Belt. 2.3 million ounces of reserves. They're 50 kilometers apart along a major crestal structure. I guarantee you that's not only 2.3 million ounces that exist in that Northern belt, and that's exploration upside regionally. To the south, it's another major structure, the [ Johnson Shear ] zone. Currently, we have 1 million ounces of reserves there between 2 satellite deposits, Timber and [ Linkwood ], and we see good opportunities to continue expanding that as well. But at Lynn Lake, as we talked about, we have a long mine life, 25-year mine life and 9,000 tonnes a day. It's what are the opportunities that we can bring higher grade into that mine plan sooner. And that's what we're focused on in '26. And those opportunities exist below the Gordon pit and below the McClellan pit. Touching on the drilling we did in 2025 at [ Burn Timber ] and Linkwood, stepping out on the reserve pits that were defined in 2024. We were successful to the west. We're successful below the pits and highlights the potential opportunity, I think, in the area. Also, interestingly, the East Foster target to the south. We don't know what exactly the extent of that is yet, but again, getting some pretty good grades there, south of the Johnson Shear zone that were an area that hadn't really been explored. I think this is one of the more exciting opportunities for high grade at Lynn Lake that can come into a mine plan sooner. This is the Gordon deposit. So this is an iron information hosted deposit. You can see the depth scale there. The black outline is our reserve pit, and then the two darker areas are two historic pits that were mined there. So between our reserves and what was mined historically within the first 200 meters, there's 900,000 ounces in that iron information. And you can see that information is open at depth. Some of the deeper drilling was intersecting information hosted gold at depth. And that's what we're focused on now is stepping out on that historic drilling and seeing if we can start defining opportunities for underground mining below that Gordon pit. And why that is relevant is because the Gordon pit is mined out in the first 5 years of the Lynn Lake life of mine [ right ] currently. And if we can supplement that with high-grade underground mill feed, even 1,000 tonnes a day that could have a big impact to the overall project. Same opportunity exists at McClellan. McClellan was operated as an underground mine historically. Those grades and widths speak for themselves that I'm highlighting below the reserve pit. And again, this is open for exploration at depth. But however, we're working right now on infilling between these historic drill intersections to come up with an initial resource below the [indiscernible] pit. And this could come in after the [ McCullen ] pits mined out by year 10 of the project. And I'll end on [ Kekovik ], which is exciting long-term greenfields project. You talk about areas in Canada that are underexplored, but have phenomenal geologic potential. This is one of them. It's a greenstone belt. Nobody ever looked for gold here until 2018 when [ Orford ] Mining was up doing prospecting and finding a tremendous amount of boulders at surface with gold in them. And it's a good indication that the source was somewhere proximal. We acquired this project in 2024. We got our geologists and team up there at that field season, didn't do any drilling, but just focused on figuring out where the targets were, where we wanted to drill in 2025, which led into the 2025 program. I'll highlight the scale here, 50 kilometers. It's in Nunavik in Northern Quebec, so it's just west of the [ Ragland ] mine. So it's remote, but I certainly think there's potential here for a significant discovery. Out of those 5 target areas that I highlighted, we hit gold at all of them on that map, which again speaks to the fact if you go into a greenfield project, building off the field work that's happened to come up with results like that across the various target areas, I think, speaks to the endowment of the belt. But what I really like to see here is off of a first program in the southern part of this target area, 55 grams over 2.5 meters in a quartz vein in a shear zone. So it's got the grades and it's got the gram meters you want to see. What that means, we're going to go back next year to start stepping out on it. We're going to follow up on some of our other intersections that we had in 2025 and start testing targets elsewhere in the property that are in the pipeline that are high priority. And the last slide, this is an example of what those boulders look like. In this boulder in particular, you can see the size of it relative to that hammer had an unbelievable amount of visible gold in it, and it was very similar to hundreds of other boulders that exist in the 700-meter long, 50-meter wide boulder dispersal train. A lot of visible gold that lead back to a major crystal structure that's under River Valley. We did some drilling there and hit similar looking quartz veins with [indiscernible] and visible gold. They were narrower. You can see some of the grades, 11 grams over 1.2 meters, but not the scale of that boulder. But what that tells me is the similar characteristics of what we intersected in that drill hole to those boulders is that there's -- we're in the system where we weren't in the highest grade part of the system. There's a significant source there to have boulders of that size over that dispersal distance. So we're going to go back there next year and continue testing that the deformation corridor and hopefully find the high-grade sources of those large boulders. And to end, you can see what this is showing is over time, we've increased our exploration spend. And every year, that was based on the success of the previous year and building off of -- off of all those results. And as we've done that, we've not only replaced our reserves, we've grown our reserves. We've grown them 65%, and we've grown the quality. The grade has gone up as well. And then the focus for us is continuing to replenish our mineral reserve resource inventory as we convert those resources to reserves. And I think the $97 million budget for 2026 is going to be an exciting year to continue on that trajectory. Thank you. And with that, I'll hand it over to John for some closing remarks.

We certainly had no shortage of slides to take in. I know there's like 130-odd slides in that deck, and I appreciate everyone's time and attention this morning. With respect to the way we define our company, I think we've provided sort of ample evidence this morning that we certainly have the bit between our teeth where it comes to continuing to build this company. We're putting the dollars where they count. We're putting them into exploration. We're putting them into development, and that's going to underpin this definition of a company with a leading growth profile. It's not a question of just sustaining what we've created so far. It's proposition for growing what we've established. And I think we've got a fantastic team. It's -- I think the quality of the information that we have provided today more or less speaks for itself. I think we have some exciting years ahead. And I'm just as excited about what I'm doing here at Alamos today as I was 20-odd years ago when I was trying to get the company off the ground. I would say that we've never had a better opportunity in terms of the way we're growing this company. It's -- we've largely derisked the story that we presented today and from the point of view of permitting, from the point of view of the infrastructure we've already established. We're growing on what we already know. Much of the exciting exploration potential, for example, that really -- that exploration story, I think, is so key to what we're doing and who we are. And the way it will continue to underpin our growth, I think, is just a really exciting part of what we do and who we are. So we're growing. We're growing production. We're declining costs. That's going to grow our ability to generate free cash flow. And that's what it's all about. And I know investors are looking forward to returns on capital. We're going to definitely get there. But right now, the way we're going to grow our value, which essentially will underpin a stronger stock price. I think that's equally important. I mean a lot of investors that own Alamo stock own us for the growth. I think we're one of those few stories that answer that side of investor focus. But you can also own it with looking to the point where the capital spend starts to come down and the free cash flow generation continues to climb. And then you're absolutely going to see an increase in dividends and share buybacks off the back of it. So I'll just wind up there. I think we're going to have another Q&A to address this next portion. So I'll turn it over to Scott Parsons to take charge of that. Thank you very much.

Thank you, John. We'll invite the rest of the management team up on to the stage and open the floor up to Q&A. And for those of you online, please submit any questions you have through the Q&A function.

The 2 million ounces that you added in the last 6 months at Island District, can you separate that out? How much of it is from exploration drilling versus economies of scale and maybe gold price assumptions? And if it was more resource conversion, can you talk to like the drill cutoff dates? The drilling cutoff dates for the June one versus the December one?

Yes. Okay. I'll address that. So with respect to Magino, we added about 0.9 million ounces to reserves. About $200,000 of that is attributable to the gold price. So you may be aware, we've gone from our reserve gold price of $1,600 last year to $1,800 this year. So about $200,000 of that [ 0.9 ] is from gold price. The remainder is from the drilling program, conversion of inferred to M&I, and just probably a very minor amount that's attributable to the expansion itself, or the economies of scale of the expansion itself. You probably saw from the unit operating costs, there wasn't a tremendous difference in unit operating costs. So it's mostly gold price and drilling. Over at Island, there was no real impact from the gold price. The nature of the ore body there is just pretty hard contacts between -- relatively hard contacts between ore and waste. So a reduction in the cutoff grade doesn't get you much more. That was all basically drilling, drilling out the inferred that we had and then also the conversion of a significant portion of M&I into proven and probable as a result of putting a development plan around it.

The only thing I'll add is, if you look at our 2022 study, a considerable amount of what underpins that our assumptions was actually inferred resources, which you had to use. I mean we've got a high-grade underground mine and trying to define reserves there. It's time consuming and it's expensive. And our resource to reserve conversion rate was so high over such a long period of time, we had a high degree of confidence in doing that. But the OSC looked at that and said, no, we don't allow that, no exceptions. We don't care how solid your resource to reserve conversion rate is. You can only use reserves in your economic assumptions. So we had to allocate a big portion of our 2025 exploration budget to converting resource to reserve at Island Underground. And we did that, and we were very successful. But that's the reason why we hit that part of the drill program so hard.

Yes. With respect to drill cutoff dates, so the prior reserve that we had in June of last year, the drill cutoff date for that, the majority of it was actually previous October. And then this year's reserve update, the reserve -- the drill cutoff date would have been October as well.

Okay. Lots of successful drilling. Second question, if I can, is maybe a hypothetical one. Just imagining all of the growth that's happened at Island Underground. Hypothetically, if the [indiscernible] deal was never done and they were separate, Island had undergone the same growth trajectory that it has done. Where do you think that the all-in sustaining cost for a stand-alone underground operation would be today if that was the scenario?

Yes. I mean when we model out what the costs are, we have a pretty good understanding of what the open pit cost us versus the underground. So I mean, on a blended basis, it's $1,025 per ounce. The open pit ounces probably cost us about $1,700 -- between $1,650 and $1,700 all-in sustaining cost life of mine. So the underground is somewhere in and around $750 AISC.

Pretty special asset.

Steve Green, TD Securities. As you're building out the second line, is there any impact on the Magino mill? And when you're completing it, is there any kind of downtime to tie it in?

No. I mean they're pretty well independent, Steve. I mean the construction we're doing right now with the main mill complex is all separate from what we're doing. So the only tie-in that will really happen at the end would be the gyratory crusher, when we need to do the final tie-ins for the conveyor systems to be able to have one stream going into the existing mill, and the new blended stream with the Island underground ore with the open pit feed feeding into the new mill. But that's very short order, like the [ diatory ] crusher installation, everything can happen independent of that. It will be just the final tie-ins with the conveyor. So it's -- from a point of view of interruption, it's pretty minimal.

As opposed to weeks or months.

Yes, very short.

And that's in 2028.

Correct. Yes. Correct.

I got a question, [ Don DeMarco ], National Bank. My question has to do with the unit costs. They're summarized on Page 86. On this slide, it shows some of the reasons why the costs are declining relative to 2026. I'm sure it's not an exhaustive list, but it talks about connecting to grid power, the expansion up to 20,000 tonnes. But I'm looking at the open pit mining unit costs. In '26, [ CAD 681 ] per tonne. But then over the life of the mine expansion, they're [ 485 ]. Can you explain why -- what was it that led to the reduction in the open pit mining cost? Similar reduction in underground mining, too. Maybe comment on both of those, your confidence in those.

Yes, I'll do the open pit first. We're in 2026, we're somewhere over $6 a tonne. We would be going to the life of mine to the high $4 a tonne. The big thing at the open pit in 2026, as I mentioned earlier, is we're operating under a hybrid maintenance scheme right now with vendor maintenance doing a significant amount of the maintenance on our mobile fleet of equipment in the open pit, which is much more expensive than having an owner team doing it. And the reason why we had to go down that route is we didn't have a truck shop as a center for our mine maintenance team. So we'll have that in place midyear. We're ramping up on mechanics and electricians through the year to be able to fully take -- by the end of 2026 to be able to fully take on that function. That's the biggest things there. And then as well as the economies of scale of increasing from a nominal of 60,000 tonnes a day up to upwards of 100,000 tonnes a day contributes to that reduction in open pit mining costs. And over at the Underground, it's all to do with the shaft going where we are now to where we'll be at the end of this year and going further on. It's increasing the tonnes per day. It's increasing the time at the face and the productivity of the employees, the amount of equipment we can run, and reducing the amount of haulage that we're doing to surface, which is a very significant cost currently. And going forward, we'll see further economies of scale going to 3,000 tonnes a day. There's other reductions in there [indiscernible] actually increases later in the life as we get a bit deeper. We're capitalizing less of our development, so we get more operating development hitting the mining cost per tonne.

Okay. That's really helpful. And specifically on the open pit mining unit cost, what assumptions did you use for the cost of fuel?

I think we're using $1 a gallon. -- a liter.

[ Francesco ] [indiscernible] from Scotiabank. I just have a question on the expansion CapEx. So I think for the mill expansion itself, you're budgeting $199 million. I think under [ Argonaut ] ownership, I mean, the Magino project, I think, was a bit notorious for CapEx blowouts and overruns, ultimately ending up somewhere in the neighborhood of $1 billion to build the whole thing. What's your level of confidence that you can build effectively the same plant for $199 million? I appreciate that there's minimal incremental equipment, no pre-strip. You're not duplicating the secondary crushers and conveyance system earthworks are done. But regardless, can you just describe your level of confidence in achieving that CapEx target of $199 million?

Yes, I'd say very high, to be honest with you. I mean we've -- as we kind of described there, we've completed a lot of the main areas that have potential cost overruns when you look at those capital projects with regards to earthworks and foundation work. And you can see from the photos, the majority of that has been completed certainly with the main mill building complex that's been already founded as far as the foundation work, and we're actually erecting the steel now as we speak. So then it's just a question of starting to service the inside of the building with the equipment. The leach tanks also follow that as well. We've got all of the foundation work done for the eventual 8 tanks. We had 6 currently with the photo that we showed with regards to what's been erected at this point. But we've got a real good detail on the vendor list equipment pricing and everything else that goes into that estimate that we've put forward, because this is something that we've been working on for quite a while. I mean you've got to step back for a minute and remember that we were actually doing an Island Gold mill expansion. prior to the Argonaut acquisition, right? So we were already dealing with vendors, understanding pricing and everything else that was going to be required for the input of a mill. This is a larger complex that we're looking to build now from what we were doing. But we were well embarked with regards to pricing for equipment and components, both on the mechanical, electrical, fixed plant equipment as well as the construction labor and units of work with regards to having to do that build.

Yes. And just -- it's an important distinction that that's $200 million going forward starting January 1. What Lucas has just been talking to is we've been working on this mill expansion for -- throughout 2025. So all the engineering has been done, or majority of the engineering has been done. The mill building, the structural steel is up. So we've spent money during 2025. So you can't look at the whole expansion as $200 million. We've incurred some capital in 2025 as well.

Just the other point on the [ Argonaut ] experience was that the bulk of their overruns were actually in dirt work. It was the tailings dam and the water storage dams that are on site that they were required to put in as a result of the EIA. That was where the bulk of their overspend came. They had actually had a fixed price contract on their mill. That wasn't where the overage was.

Great. And one more follow-up here, specifically on the open pit equipment, adding trucks and a shovel. Is that going to be identical equipment to what's already at site? Or is it going to be a little bit larger?

So that's a good question. That's what we priced in there and the units that we put in there are identical equipment to what we're running now. We've got a number of years. I think there's probably 3, almost 4 years before we need to actually start buying that equipment. We'll make some -- do some studies in the meantime to determine if it's appropriate to upsize that equipment when we actually buy it.

One for me. Brian Quast, BMO Capital Markets. Maybe building a bit off of Bryce's questions there. You've set your underground tonnage at 3,000 tonnes a day. What are some of those key constraints? Obviously, that drives a lot of the production profile and economics as more tonnes from underground seems to be better, and there seems to be plenty of exploration upside to extend that underground. What were key constraints to get to the 3,000 tonnes a day?

Well the key constraints there would be -- one is the development. We've got to accelerate our development meters per day than where we have been, and we built that into our into our expansion study to be able to obviously procure the equipment, have the equipment to be able to deliver on that as well as the labor. The other big aspect of it is the production shaft. Getting that production shaft online at the end of the year is going to be really the game changer. The efficiency of being able to move ore and waste to the infrastructure to be able to get it out of the mine in order to be able to support the development rates as well as the production rates are going to be the two -- that's going to be the real key to us. So it will simplify the aspect of what we do from a material handling point of view today, immensely, with the amount of trucks and everything having to be trucked to surface as opposed to moving it through the shaft. So there'll be a significant productivity improvement just on the basis of the upgrade of the infrastructure that we'll have in place.

So if we were to think of this as a snapshot in time, we would probably have to think about either another shaft or some other egress method to raise that tonnage above where it is today?

Yes. Longer term, I mean, the infrastructure that we've put in place now with the hoisting plant that we'll have on surface will be able to take us to a depth of 2 kilometers, certainly. But longer term, bigger vision, certainly, you're potentially, yes, looking at a second shaft mine, or a wins depending on how the exploration process plays out over the longer term.

One of the aspects of the exploration will be to define reserves up plunge to the west. That wouldn't go to the shaft. That would be ore that would come up through the ramp system. That could be incremental to the 3,000 tonnes per day.

We have a couple of questions online. Just back to the Magino open pit. Lower strip ratio through 2030 to 2020 -- or 2035. Did the expansion plan allow you to rework the open pit schedule? And what were the considerations that went into that?

Well, the expansion plan includes an extra pushback into that. So we had to redo the schedule to cater for that and the additional reserves. I mean the same -- I mean we use the same kind of philosophy in developing the mine plan for the expansion as in the previous case and our pushback with and our productivity assumptions and our pushback vertical advance per month. All those same kind of things were used, albeit with additional units added to the fleet to achieve the tonnage. We -- in the previous plan, we were developing a very substantial low-grade stockpile. In the new plan for the expansion, the size of that stockpile is a little bit smaller, obviously, because we're putting more through the mill.

All right. We have additional questions online. Greg, this could be one for you. Can you provide a bit of history on the hedges inherited from Argonaut Gold, the size of the hedges, how much we've retired to date? And how much is remaining and any plans for the remaining 100,000 ounces?

Yes. So when we completed the deal in July of 2024, the hedge book at that point, like the day prior to close was 380,000 -- sorry, 330,000 ounces of hedges, all at about that [ $1,821 ] mark. When we closed the deal, the first day, we basically took out a prepayment to pay off the hedges. So we bought out the first 150,000 ounces of hedges, which were the 6 months of 2024, and the 12 months of 2025. As we move through this year, knowing that the hedges were still in place for 2026. As I said, we bought out the hedges for the first 6 months of 2026. So we haven't delivered 1 ounce into that hedge book yet. And there's another 100,000 ounces to go. So big picture, there was 330,000 ounces. We retired 230,000 ounces of those without delivering into an ounce of that hedge book. We have 100,000 ounces to go, which is 50,000 ounces in the second half of '26, and 50,000 ounces in the first half of '27. And we -- just as we did with the hedges that we took out in December, we'll look to be opportunistic when it becomes available.

Thank you. And sticking with you, Greg, one more question. With all the talk of tariffs, do we foresee any challenges in terms of operating our business?

No, we don't -- I mean, there's been talk about tariffs for quite a while now since the presidential change, and we haven't seen that significant impact on our business. It's changed, and Luke can touch on this and potentially John Fitzgerald at the back. It's changed some of the approaches that we have to sourcing some of the materials for our construction projects, but it hasn't changed the cost structure.

Yes. And just to add to that, maybe just on the equipment side of things with -- if you look at Lynn Lake, for example, with the fleet of equipment that we're looking to procure for that operation, I mean, that's -- with the supplier that we're dealing with, tariffs are not something that's part of that agreement, or an issue with regards to sourcing the fleet of equipment that we're looking to operate Lynn Lake with and similar equipment suppliers that we use with our other operations underground as well.

Maybe one question on the revised CapEx for Lynn Lake that you have shown on Slide 45. So you have seen $120 million increase in CapEx just from inflation over the last 3 years. Given that you have 3 more years of construction, how should we look at the potential for increase in CapEx given that you have $871 million of spending left?

Yes. No, it's a fair point. This is a point in time. There is risk of further inflation. The one thing I'll say is that we have upped or increased our contingency to potentially capture some of that, but there is inflationary risk moving forward on this capital.

The reason why we leave it that way is everybody will have a different assumption as to what that will be, and you can build that into your own models.

Maybe one bigger picture question. So obviously, you're having tremendous success in terms of exploration results near -- in the near mine targets that is [indiscernible] and Edwards at Island Gold. Like -- how do you look -- I mean, bigger picture, how do you look at those targets? I mean, like eventually, do you see it just to supplement ore for the Magino mill? Or do you see it developing like a potential for an expansion at Island Gold down the line?

It's in terms of the targets, I mean, we're still fairly early days in [ Kent Edwards ] having put together the land package, understanding what's controlling the high grade there because there is quite a bit of high grade, and we need to understand what's controlling it. We'll need to define, I think, the extent of the system and what that initial mineral resource will be, what the opportunity could be if we continue stepping out to understand what impact it could have overall for the district for us.

And at the point that we define higher-grade sources, which Scott and his team are focused on, we'll run the economics at that point. Does it make sense to displace lower-grade Magino material? Or does it make sense to expand the mill further when we have the -- when we understand what's out there from a regional perspective, we'll run the numbers at that point. Every decision we're going to make is always going to be the best economic decision.

It's nice to have -- we have complete flexibility on that. And I see great opportunity out there. We presented it as exploration upside. In terms of immediately what might impact that displacement of Magino ore, it's conversion of another 1.5 million to 2 million ounces of near-mine resources we're having nearly -- it's over a 90% conversion rate. It's inevitable that they're going to come in. The ore body, it is going to grow. There's absolutely no doubt about that. And ultimately, it's likely that as it grows to the west, as I mentioned earlier, it's likely we're going to be bringing some of that high-grade material up through the ramp system, and that inevitably will displace some of the lower-grade material coming out of the pit.

I think that's it for questions. I'd like to thank you, everybody, for joining today. For those of you online, we'll talk to you soon. And for those of you here in person, please do join us for lunch. Thankyou.