Pan American Silver Corp. ($PAAS)

Well, right down to the second, good afternoon, everyone. As you know, I'm Swiss Canadian, so we have to start on time and doesn't work a different way for me. Welcome, everyone here in the room. My name is Michael Steinmann. I'm the President and CEO of Pan American. For quite a while actually already. I think this is my 11th year as CEO and my 23rd year with the company, together with a few other white hat guys here in the room, Steve and Martin and Ignacio, we started all at the same time in 2003 or 2004. So we can tell you the story, and it's an incredibly exciting story about Pan Am and by the way, welcome also to everyone on the call. I hope there's a lot of listeners there. It's all recorded, so you can go back and listen because there will be a lot of information. So a very exciting story. What happened in the last 2 years. We did this just about 2 years ago, I think, when we closed the Yamana transaction and Pan Am went to a lot of changes there. Of course, that has all settled now and we closed in September also the acquisition of the 44% of the [ Juanicipio ] mine when we purchased Max Silver and Sam will give us more details on that. But -- of course, big changes to Pan American and a very different, much, much stronger company. And you will see this afternoon that there's a lot to come still. A lot of catalysts that are up there. And I just want to mention a few, but we just put that actually Timmins, an update on Timmins today. And there's a lot of interesting discoveries at Timmins, and we'll take a few more months to work through that, but very interesting, and we'll see a lot of details on that. Of course, La Colorada [ Garden ], our flagship homegrown, all found internally, one of the biggest discoveries in the world over the last few years and probably will be for a long time, which is going to build our next -- just jump in and ask the question. There will be like maybe 3, I think 3 times a question and answer period in between. And then, of course, at the end. And when we are done here, unfortunately not for the people on the phone, there will be some cheese out there and some time to mingle to ask more questions. You have a big team here, technical team from the company, as I said, with a long history. So and finance, obviously. So we should be able to answer all the questions you have. So let's get started. And of course, we not only me, but we all will use forward-looking statements. So please make sure to read the cautionary notes in our public filings. Just a quick agenda. I'm not going to step through that. You will see how it goes forward. It's just a logic step if the introduction and -- we have the different teams that will explain you all the catalysts, what we did over the last few years and where we see and this is going and how the company is going to grow. So I'm not -- you don't see that in. Okay, yes. Okay. So that's the company now. You see there the map. Of course, we are still active in Latin America. And I got a lot of questions about the geography and why we are where we are. And this is really a geology that dictates where we are. If we want to be a large silver producer in the world, that's where you have to work. Large part of the silver deposits are really found in the [indiscernible] so somewhere from Southern Chile or Argentina all the way up to Alaska. So you see there like pearls on a string, that's where our assets are. That's where our projects are. You see 2 outliers in that sense, Jacobina in Brazil and the Timmins assets in Canada, way further to the east and guess what, there's no silver there. Those are pure gold producers. So silver you can find gold in many other places, but silver is a bit harder to find. And when you find silver, silver comes with base metals and with gold. So we find it with [indiscernible], copper and gold, hence, we produce all those metals as well. So that's just a bit different than gold where you look at Jacobina, that really just produces gold. And I think Steve, it only produces a few thousand ounces of silver a year. So very, really pure gold producers. You can't find that on the silver side. But it's really the geology that dictates where we are located with our. You see the 10 producing mines, actually, it's only 9 mines that we are running. The tenth mine is [ TofaniCepio ] mine in Mexico. It's a joint venture with Fresnillo for [indiscernible] osteoperator. So it's 29 mines that we are running. As I said, we are advancing several projects, La Colorada, the car, obviously, [ Workatobring ] Escobal back into production and now look at the potential expansion and optimization of Jacobina and now what we published this morning, doing a lot of work on the Timmins camp as well. And of course, if we want to be a successful mining company, you need large reserves and resources. That's really the base of your business. And we have the largest silver reserves and the largest silver resources in the world. Not on the gold, but a respect for gold reserve as well. And you see there, what's really important for us, the very nice diversification in Latin America. Of course, we're running our assets in jurisdictions that are more risky than just doing it in Canada. That is what it is. If you want to have exposure to LatAm, which is one of the biggest metal producer on the planet, Pan American is an excellent way to play that exposure. But I really like to be diversified in different countries. So we are not too exposed to any given election cycle or any other issue in one of the countries, and that's what we have achieved there. But very nice diversification within Latin America. But really, we work in the places we know. Most of us, including myself, span all their careers and a lot of their private life [indiscernible] I lived and worked for over 16 years in LatAm. Obviously, now, we still work there. We speak the language. We know the places. I think it's absolutely crucial to be successful to do it so. So I already said that the leading exposure to silver. I think during today, we can show you how that works out. We built -- we have built many mines. Can there's not many groups that can say that of themselves, but we have, and we will continue to do so the big growth that we have had, incredible cash flow generation. And that was a strong cash flow generation when silver was at $35 a couple of years ago. So of course, no surprise that those really strong cash flows now persist, and you saw probably Q1, again, another really, very strong quarter that we delivered there. The reserves I talked about, you have to replace reserves. I have a slide there and obviously, optionality that is not fully valued yet in our share price. And just quickly, you see on the silver on the left side and gold on the right side there. How, obviously, Silver be started working on, first, how over many years, we increased that silver production, you see there, how do you call that the COVID dip, I guess, and then the growth again this year, we guided 25 million to 27 million ounces of silver production. And just the blue dot show you all the operations we built during the time with the team that you see here and obviously more people, it's not just 3, 4 people that built those mines. But this is all internal work that we did on the silver and on the gold side. So a very proven mine builder, and I think it's important when you want to be a proven operator, but we not only know how to operate them, but you also know how to build your minds. So absolutely crucial for that. So what we're going to talk about today is, of course, La Colorada, we put out an updated PA now a few weeks ago, very exciting project. It was exciting before, maybe a bit confusing for 2 years when we came out with the first PEA because we basically we're on a plan to build the biggest zinc mine in the world with a lot of silver production. But the exploration team and Chris will show a lot has been incredibly successful in adding high-grade silver discoveries not only in the [indiscernible], but also in veins that we actually had enough high-grade material available to come out with, I would call it, the first phase or Phase 1 high-grade silver production. That gave us the opportunity to come out with a PA with a smaller project, still big, but producing over 19 million ounces of silver a year in the peak years, very exciting project that we're going to build here over the next 5 years. And we see a lot of details about that. Obviously, the Timmins camp, we're going to talk. We have -- 2 of our people here from Timmins that run Timmins for us, and they have been very successful up there. Jacobina, I think we should make very clear, we always called it the optimization study, and I got question. So when is the study coming out and if you have a chance afterwards to talk to Steve, it's actually, I think, 32 different studies. So it's not just 1 study. Some are coming out. Some we're building this year. So it's an ongoing process to see how far we can go at Jacobina in 1 of our past gold asset that actually right now, I think we have a mine plan until 2053, and just an asset that just keeps growing. And of course, the latest addition, which is the 44% of 1 is CPSC, they're brand-new Silver mine in Mexico in the biggest silver district on the planet that district has produced, I think, about 4.5 billion ounces of silver historically. And I think it's in production for about 450 years. So that's a real elephant country when you look at silver. We made a big change to our shareholder return. I'm sure you've seen that. We just announced after Q1 that we plan to return $1 billion to our shareholders this year. We're already at close to the end of Q2. So this is coming quick. It's a mix between dividends, which we fix now as a $305 million [indiscernible] , we paid $0.18. We increased the dividend every quarter, and the last increase brought us to $0.18 per share per quarter, which was the equivalent of $305 million. I just wanted to fix that number now because we're buying back shares very quickly, there will be less shares outstanding. So automatically, as we fix the dividend, you as shareholders will receive every quarter a little bit more dividend on the shares that you hold. So that number will be fixed. And then the rest, let's call it, $700 million will be share buybacks. And you see there having tended in other big surprised that we just put it equal for each quarter. It's not going to exactly happen like that. Of course, we react on like down days, et cetera, be opportunistic on there. But that goes full steam ahead. I have all intentions in the world to return the $1 billion. I think we are already closed. We finished Q1 with over 800 million -- sorry, $1.8 billion cash and that's still growing fast, and it was a good time to return way more to our shareholders. While we still have far enough cash available to go through all the builds and expansions that we plan to do so. So incredible story on the return to our shareholders is going to be a very nice return. And I really hope that we can do this for many years to come, obviously, depending on metal prices, but I think we are now as a size of a company an environment of metal price where it generate so much free cash flow that absolutely is the time to return more money to our shareholders. Just quickly talked about reserve replacement, and Chris will show more after that. But that's over the last 20 years, 65% of all the silver we mined were replaced in P&P, not in resources, there's way more resources, but just improvement in problem reserves. And you see there are the cost to replace. And that's all the drilling, all the development and everything to get there and bring it to P&P $0.80 an ounce. We can't buy ounces for that money. Obviously, nowhere in the world. Nobody had any silver price would have ever sold silver at $0.80. So that's a big value creation over time. And that does not include what you see on the right side, which is probably close to 400 million ounces between the skarn and the high-grade discoveries in veins that Chris and his team achieved and that's on the silver ounces. It doesn't include all the gold that you replace doesn't include all the base metals that you added. So very strong reserve replacement. I'm sure there will be more questioned about Escobal, but just quickly here. You see there a picture of Escobal always impressive when you see how small the footprint is of 1 of the best silver mines in the world. Unfortunately, still not in operation. I know it has been frustrating, frustratingly slow for all of us here, including myself. But there's study progress on it. It just takes a long time just for people that are not aware, this was an asset that belongs to a company called Tower Resources really lost social license and was forced to go basically back into a consultation with an indigenous group, and that's really what we're working on over the last 3, 4 years. And when I say we, it's actually not us, but it's the government of Guatemala that has to do the consultation, and we just [ party ] to it. So of course, we are -- I'm working hard on it as well because there's so much value that we can provide to Guatemala and the communities around with that asset, which is state-of-the-art, ready to go, very little working capital to get the mine started. But I don't know when, and I know I get the question all the time. So while we know La Colorada can producing nearly 20 million ounces in the peak years, we know when it's coming, how much it's going to cost. All I know here is that it's not going to cost a lot of money. We think about $80 million to $100 million working capital to actually get it going because all the infrastructure is built but I don't know when it's happening. But when it happens is other produced about 20 million to 21 million low-cost ounces that I think are largely not valued in our share price yet. So keep working on it, for sure. You see that the reserve resource statement is what is about nearly 400 million ounces of high-grade silver and that asset to wait. Just quickly on the silver market. I mean, we can talk about the silver market for probably the whole afternoon. Silver market is very interesting. There's obviously 2 pieces to it, the industrial demand, which is growing very, very quickly. And it's one reason why we see these floors stepping up from the $4 to the $8 to the $14, $20, $25, $36, $40. Now I think that floors, it's probably somewhere in the $60 to $70. And then you get these peaks on top of it, which is really the investment demand that jumps in, that comes in and out a bit. But when you look at the industrial demand, it's now 60% to 65% of the silver that is used up. And when you look at the users of [indiscernible], which is mostly electronics, clean energy production, water treatment, electrification, AI, fast Internet, fast networks, cars, I can make a long list because it's really used in electronics. It's very easy to see that the silver use is going to increase over time. And it doesn't really matter for most of this application, what the silver price is going to go because when you look at your phone, your computer, it's a few grams of silver in there. It's just many, many phones in the world, but it's not dictating the purchase price of your electronic device because silver price goes up, it's really -- but it gives you and allows you to get the fastest connection because silver is fastest electric conductor in the world. So a lot of demand on the silver side for the industrial side, we are in a shortfall now for like 6 years. But then you see on the right side, also ETFs, of course, as I said, when the investors come in. And sometimes, the silver market is very small. So when a lot of investors come in at the same time, the silver price, as we've seen in January goes up to $122 while you have dinner, very strange situation. And we know when that happens, it's not sustainable. And it comes back and silver dropped $30, I think, 2 days later. But it is -- has very nicely consolidated right now, somewhere in the $75 to $85 which obviously phenomenal price for us, a company that made a lot of cash flow and strong earnings already at $35. So a very strong market for us. So as I said, mostly electronics, cars, you name it a lot of users of silver and just get more and more users by the day. A very, very modern metal. It's a critical metal now in the U.S. and in other jurisdictions. I think it will be declared critical metal in most countries in the future just because it's so versatile. And just to show you a little bit, this is the use of silver in photovoltax. Of course, there's a lot of thrifting. I think photovoltax is probably the one aspect of silver where, the silver price really has an impact just because it uses up so much silver. So less and less silver is used in each panel but more and more panels are installed with the fact that it's now very stable or quite stable there around probably 200 -- let's call it, 200 million to 250 million ounces of silver needed for clean energy production in photovoltax are an important part of the silver use. But we can go through other there are cars. You see EV is obviously growing quickly, hybrid but also combustion engine, electric cars need more silver because you have more computer power in there to control your battery charges, et cetera. But the more computer power you have in a car the more screens, the more radios, the more fancy cameras the more silver is needed. And as we know, every car now has that. And it's not just the luxury cars like it was before, but now you see the [indiscernible] and that really drives that demand. And then, of course, electronics on the right side, I think none of us will plan here to have less electronics in their lives in the coming years. Well, what does make the story so interesting is when you actually look at the mine supply, it's not increasing because -- and remember I said and you have it there, 71% of the silver production is a byproduct. And you see there from what it comes from gold production, copper production, let zinc production. It's a very small amount of silver, you can have 1 gram, 0.5 gram, 2 grams of silver per tonne of rock in a big copper mine. But when you mine 1 million tonne a day, you produce a lot of silver, and that's what's happening. But it's not driving the behavior of the copper miner where the silver prices because they're mining with the copper. Not only that, we're already shorting copper, copper is in huge demand. So we cannot just produce more silver in the world. There's not an abundance of primary silver mines and all the producer that produces a byproduct mostly gold and base metals. They already see that record metal prices. So they already produce as much as they can. So I really don't see that picture to change a lot. And I think on the producing side of silver, you're going to see a very flat or declining picture. While obviously, at the demand side, we're going to see an increase and that's what you saw there over the last few years. We are in a deficit. Of course, there's silver above ground available that people are happy to sell at a certain price, there's pulling available. People selling today, I didn't look at $74, $75. So there are people to sell to fill that gap in. But of course, that has increased from like $4 20 years ago to now $75 today, and we'll continue to increase at what price people are willing to sell their bulling into the market to fill that demand. Just one more slide I'm done because I'm already a minute behind. But -- that's an interesting slide. When you look at the production, of course, for [indiscernible] is still bigger than us. Remember, we do 25 million to 27 million ounces. You had 19 million ounces from La Colorada in the peak years. If we could get Escobal back at 20 million or 21 million ounces, obviously, very easy to see that we will be the biggest silver producer in the world. We have already the biggest silver reserve. You need the biggest silver reserve if you want to be the biggest producer. But already now, and you see there, we actually have the best correlation to the silver price. And I think it's obviously based on the assets we have, the projects we have and the large reserve base that we hold. So it just makes a lot of sense that we have the strongest correlation to the silver price. Well, we produce still about 730,000 ounces of gold. I wouldn't call that the byproduct because actually, at the moment, when you look at the revenue because gold is so highly priced. It's probably about 38% silver right now. Gold is probably closer to 58 to 60, then the rest is base models. So while La Colorada comes saying this will flip, at 1 point, it will be probably about mid-50s to high 50% silver, and then the rest will be gold, depending on the silver gold ratio, of course, as I said at the beginning, Silver doesn't occur alone. So you can't go to like you can't produce 80% or 90% silver of your revenue that you could do that maybe on a very small mine, but not as a sizable big company. So with that, my introduction is done, and I thank Sam. You will do [indiscernible] the acquisition.

Good afternoon, everybody. I'm Sam Drier, business SVP for Business Development and Human Resources. I'm still clocking up my years here, not quite at the Michael and the Steve and Martin level, but I've been with Pan American for 7 years and continuing this journey. Today, I'd like to share our perspectives on M&A on our current execution, what we've achieved to date and some perspectives thereon. So what you'll see in this graph here is over the last 7 years, a series of well-timed transformational M&A acquisitions. It started off in 2018 with the acquisition of Tahoe Resources, followed by the acquisition of Yamana Gold in 2023. And then late last year, we closed on the MAG Silver acquisition, which led us to acquiring the 44% interest in [indiscernible]. So what you'll see is following each of these transactions, we've really been able to really reap the benefit of the commodity price increases -- with the most happening after our last acquisition with MAG with the silver price increasing of 132%. And what's really been key to the success of this is really maintaining our strong financial flexibility. We've been able to be opportunistic when situations arise, and we've been able to react fairly quickly. And this has put us in a really strong position. So not only have we been opportunistic on the M&A front. But we've also been really diligent in being able to pursue portfolio optimization. Since we acquired Yamana over the last 2 to 3 years, we've been actively looking at our portfolio and really divesting of noncore properties. We've been very successful on this front. And over the last all of these various divestments, we've accumulated over $1 billion in cash. What this has allowed us to do is we were able to redeploy $500 million of cash from those noncore divestments and redeploy that into the investment in a very meaningful silver acquisition by way of the [indiscernible] mine in the MAG Silver portfolio. The MAG Silver acquisition is really solidified and continued to strengthen our position in the silver producer space. Michael just alluded to it in his slides, which showed that he mentioned it as well, like if you were to think about adding Escobal, we add La Colorada scan, we really are continuing to increase our silver exposure to -- sorry, we're continuing to increase our position as a silver producer. And for 2026, we're looking at 25 million to 27 million ounces, and we're looking to continue to grow that. So not only did [indiscernible] really help continue to strengthen our position on the silver production front. It's really made a meaningful contribution to lowering our overall cost profile. The Finacepia all-in sustaining cost is expected to be between $2.25 and $4.25 per ounce in 2026. And you already have seen in the first quarter of 2026, we've really been able to reap the benefit of that by having a total all-in sustaining cost for our silver segment of $6.63. So really being able to contributing higher significant silver production, but with really high-margin answers. And with that, I'm going to hand over to Guido to walk you through our approach to M&A. I was very fortunate to have Guido join our business development team last year. Guido is a young veteran of Pan American and have been with us for over 17 years. And he's really touched a number of parts of our business. He's been in finance, treasury, commercial, marketing, insurance, financial planning and analysis. So really great breadth and depth and very excited to have him on my team. And with that, I'm going to hand over to you, Guido.

Thanks, Sam, and good afternoon to everyone. Yes. So as Sam mentioned, my name is Guido Mastropietro. I've been in the company for my 17th year, and I've just about a year ago, joined Sam and the business development team. In terms of -- as we go to the next slide, I'm going to first talk about our approach to M&A and then talk about some of the work that we've done over the last few years. So in terms of our approach to M&A, and as Sam noted, we've been really busy over the last 7 years, transforming the company. We've really strengthened that silver segment. We've built out our gold segment. We've replaced assets like [indiscernible] and Morococha and now declining [indiscernible] that's in residual leaching with assets like Corning CPO, Jacobina, El Penon, really, this battleship assets that are higher margins, large scale. So really focusing on that high-margin large-scale production. That's our -- that's the overriding factor and what we're looking for in our M&A. We're looking for gold and silver, of course, in the right jurisdiction in Latin Americas. Americas is where Pan American has got a large footprint, a growing footprint. We've got a really strong base knowledge from our team that's operated in LatAm for over 2 decades. So I really feel that that's where we can leverage our expertise as well as leveraging our ESG, right? We have a really strong reputation in ESG. We bring that to the table in every jurisdiction, really try to incorporate that into how we think about acquisitions and how we think about incorporating those acquisitions into the Pan American fold. As we -- in this last 6, 7 years, what we've shown is a really creative approach at leveraging transactions and finding ways to unearth and unlock value through acquisitions. With Tahoe, we use the contingent value rights as part of the acquisition. We wanted to avoid diluting shareholders for Escobal, which was a nonoperating asset within that portfolio. So we issued 15.6 million -- the equivalent of 15.6 million shares and contingent value rights for that acquisition and then effectively really deferring the cost of Escobal in that transaction. Same thing with Yamana. We looked at the creative approach to an earth value. In that case, it was a joint acquisition with Agnico, where we really split up the assets in a way that made sense for both companies and leveraging our expertise and our history in Lat Am and then Agnico getting the other half of Canadian Malartic. Throughout this last few years and as Sam noted, there was quite a bit of cash proceeds that came in from the -- the sale of noncore assets. We really built out this very large royalty portfolio of high-quality assets. in the copper, gold, silver, really providing more exposure and long-term exposure to rising metal prices and really another catalyst in the portfolio that's listed here. We also hold a very -- a number of limited strategic investments. There's 3 right here that we're going to talk about. In 2017, we acquired shares in New Pacific Metals. New Pacific is advancing to very promising silver deposits in Bolivia, Silver Sand and Kangas. We also have 14.7% interest in gallium gold. Gallium Gold has about 1.5 million ounces of gold adjacent to our Timmins West Mine in Timmins. And then recently, we -- there's been an announcement on Cadillac mines. We turned our ownership interest in the larger property that came as part of the MAG transaction into what at close will be a 6% interest in the Cadillac mines. Cadillac mine is advancing the Koradison project, the restart of that mine, which has around 3.7 million ounces of indicated, 4.7 million ounces of inferred. So another very prominent gold development stage opportunity. So with that, I just wanted to say that as we go through the next few years here, we're really looking to build out on that strategy, build out in our history of executing this growth trajectory that Michael showed earlier, this increase in silver production, maintaining our gold production. So we're really anchoring that with the projects, this brownfield projects that Scott and team are going to talk about. This is the La Colorada [indiscernible] development. La Colorada has the potential to be a world-class mine on the silver side, 19 million ounces of silver in the 2030s that could put it very much in the largest silver mine in the world, primary silver mine in the world at that time. And then anchored with on the gold side with Timmins, the Timmins camp project that we press released about earlier today. There is the integration of those satellite deposits really building out what we think could be a long-term production profile here in the Timmins camp. The Jacobina optimization study, which Michael talked about, it's really a lot of studies. And then this rounding it up with brownfield exploration success, continuing the history of brownfield exploration success in our portfolio that Michael also talked about, while retaining this large-scale silver optionality. I mean we have Navidad, we have Ascoval. Those assets are in the portfolio still. They provide that optionality long term on our silver side and complementing that with opportunistic M&A. And with that, I will -- yes, I will -- before I pass it on to Scott, questions?

Just a quick question on -- you mentioned you've had great success in terms of M&A over the last couple of years. You have all this optionality. Question keeps coming up, is Pan American done in terms of M&A? Do you see more M&A in the future, more noncore asset sales? Any color on that?

If you look at the leadership of this organization over is, I think you'll notice that transformational M&A is pretty much one of the pillars of our overall strategy. We have -- our team has -- we've been able to build out our team and we continue -- we continuously look at M&A opportunities. I think you'll notice through the presentation, we have all these different pillars, pillars of growth, pillars of return to shareholders like M&A is a key one. And it's not -- I mean, we yield -- on the solver space, I mean, you know very well opportunities are scarce. We've been very disciplined in making sure that we execute on quality. You'll see we've over over the last 7 years, we've really sort of been building cornerstone assets here through Jacobina want to continue to be opportunistic, but we want to be really disciplined and really look at the quality M&A, for sure, is definitely a core part of our strategy, and it's something that we will continue to execute on in addition to looking at our portfolio and optimizing it in ways and Michael would like to add a few words.

For sure, and a very important point. But Look, I'm a very firm believer to build stronger, bigger companies in the mining space. The future will require that. Mining is complicated. There's not a lot of people out there that that can successfully doing it. Capital is not scarce right now, but it will be again. And it's not easy to build these big assets at over time because the capital numbers will increase substantially here because everything is going to go underground, but in 20 years, we probably mine most of the open pits or at least discover them in the world, and you're going to have to build very, very large underground operation like the La Colorada skarn. So very productive mining methods, et cetera. So a lot of technical knowledge needed. That's 1 point. You can't just count on shareholders continuously injecting money in this business. I know that the exploration business works like that, but I think it's getting harder and harder there as well. And We, as a company, a large company have a responsibility. And these are some examples there to inject money as well to make sure that these projects get discovered and developed for the future. And the last point is the last time we had to go to our shareholders to actually build 1 of our assets was in 2009. I have no intention to go back to our shareholders for financing of a project, I have a firm belief that we generate enough cash to build any kind of size of projects that fit to Pan American. So that's really my belief. So how do we achieve that? -- is obviously to have better, higher quality assets that have longer mine lives. And we can find them. And I think it's amazing that we found the world class asset at La Colorado, but just finding it in your portfolio. I'm a geologist, but I've never seen that before. that you just discover a huge deposit below your existing mine. So then M&A really comes in there. Now you have to be very picky. We only did 3 large transactions over the last 10 years. they have to be accretive. So it can structure them in certain ways. And -- but we look at in dozens and dozens and dozens of opportunity and we'll let them go pretty quickly when we don't see what we are looking for like long mine life assets that make money at way lower metal prices. And the most important, we need to see the exploration upside because everything that is already discovered, you're going to have to pay full price for it. And so that's what we do. And when you put that all together, it's not possible without M&A to continue that trajectory. But you cannot just become a deal chunky here and do whatever and by whatever, just to increase the those ounces. So it's a lot of work, and it's kind of a slow grind to go through all these opportunities. And not a me wrong, the market doesn't really appreciate when you announced a big transaction that [indiscernible], but I think we have shown now again what it can do when you do it at the right time with the right assets and definitely try to continue that trajectory.

Any jurisdictions you would stay away from?

Those many jurisdictions, I would stay away from luckily many of them don't have silver. So we've done -- we don't have to go there. Look, I think we are obviously very comfortable in the Americas, and that's really what it will be for us. I mean, just the fact that you have hardly any time difference that we know the places for many decades now. It just makes it so much simpler. There is -- as I said, there's no silver in West Africa. So it's no places -- and it's not because there's lots of people that have been very successful in those places, too, because they know the places. We don't know the places. We're not going to go there. And it just doesn't make any sense, right? So of course, we -- so when you look where silver is, there's only a little bit in Australia, tough to get our hands on that. Russia produces a lot of silver. Obviously, it's a no go. China is difficult. There lots of really small mines on the silver side. So at the end, when you look at really Lat Am, so it will be the Americas for us.

In terms of future strategic development, where will the emphasis be in terms of gold versus silver? I know that from a revenue perspective, gold outweighs silver. But from an ounces perspective, it seems most of the activities on the silver side. Again, just curious.

Yes. Look at the end, obviously, like us. We need a lot of silver we show that in the slide in the world. And it's 1 of our responsibility to deliver that server to the world so that the world can advance and continue the way we should go and we can produce that clean energy and electrification that we need. So but you can't find your silver as I showed. So for me, it was always the step change. Sometimes we added more silver than it came with a bit more gold. La Colorada will bring in a bit more thing, by the way, as well, a critical mineral or metal for steel production. And maybe there's again to be more gold come a bit more silver. So it's just a picture in time, really. We are a silver company. We are the biggest silver reserve and resource, and we have it in our name. I think it will always be there. But for me, if we had profitability is really what I'm looking at, at the end. If there's a bit more gold coming in right now or be more base metal later on. The big picture, yes, will be a silver company. When you look at a certain time, the picture, it will be maybe a little bit different. And we went as low as probably silver revenue on Leven. Silver was underperforming gold 2 years ago, and we had more gold production. That happened. It's not where I want to be. But if we are somewhere between this 35% to 55% silver, I'm very comfortable there.

Michael, just wondering if you think back to the Yamana transaction, when you guys consummate that deal, you guys kind of cleaned up the portfolio a bit shelve some of the shorter life assets. Now as we think a few years later, if you look at some of those Yamana assets, they're also becoming a bit short life as well. When you look at Cerro Moro, Florida, Penon stockpiles depleting. As the portfolio kind of consolidates around some of these larger cornerstone assets like Juancipio, Cara, Skarn Jacobina, how are you thinking about just those shorter life assets? And how are you managing the resource consumption within the firm around those -- the bigger portfolio?

Yes. Look, we have -- this year, we spent, I think, $135 million in exploration. Most of our exploration is brownfield or within the district, so we can track it to our operations. And so you mentioned a few names that are shorter life and not in agreement with all of them. I don't think that [indiscernible] always like 4, 5 years historically of reserves, but I had that 20 years ago. I think hopefully, it will still have it in 20 years from now. Of course, it gets harder later on, but you just have to spend more money. There is definitely the the opportunity there to get to such a long mine life. So when you look at Florida or especially CareMore, that's a bit harder because the assets in Argentina, and that part of the world don't go that deep like we see in Peru or in Mexico or some in Chile. So you don't have that extension. There we find satellites in different distance. And of course, metal prices will help there for a while. But definitely, that's one that generates nice cash flow, but not that many ounces anymore. Of course, Jacobina is going to be a battle shape asset for us for a long, long time. And one of the main reasons why we wanted to buy Yamana Gold. So I think it's not just from that acquisition, it's just a continued quest to expand assets that we already have, maybe acquire another big asset but then sell off to smaller assets. If we can't find a much, much bigger resource base there. But as I said, look, I'm together with Steve and Martin, we thought in 2006 that we have to shut down La Colorada in 2008, and now it's 1 of the biggest discoveries on the planet. So you can't give up too early neither. Geology has been and will be always very important in our company.

I know earlier you touched on the royalty portfolio. Its grown to quite a big size. And I know, Michael, you've talked about how Pan American is a producer, not necessarily a royalty company. Eventually, there could be opportunities there. I'm wondering how should investors think about the royalty portfolio and maybe push a little bit further, what kind of value should we look at it from that perspective as well?

Yes. I mean I think if you look at the list, it's back up here. This is something we've been generating over the last 3 years. I mean we've added a few others. So as you can see, 5 others, the transaction details are not public, like we're continuing to add royalties to this portfolio. not really in a rush to necessarily sell it. We don't need the funds right now. But we think that the right time is going to come when it will add a lot of value to our stock. These are copper gold Silver time has worked really well in our favor. Some of the royalties have been going through additional permitting and additional progress on the technical reports and the progress on the studies that -- to build those assets. So we think that there is time is on our side on this portfolio. But really, it's just building out the portfolio before we do monetize it.

Just quickly and then we have to keep going if not, we still here by 7. But the last time we had a royalty portfolio, which we always create the same way, by the way, they are not royalties from our producing assets that are royalties when we sell up and as. We always keep a royalty. And before I was CEO, I did the business development and I capped royalties the same way. And [indiscernible] portfolio, we started [indiscernible], if you remember. And I think that got finally sold 2 triple flag. When you look at the value from the beginning to the end, I think we did about 12 on our money with that transaction. So there's very smart ways to deal with that, that it can create value, especially if we don't need the money right away. And I think they are [indiscernible] on just selling it to a large royalty company. And I'm sure Sam and Guido will come up with a way to generate way more value from those.

Good afternoon, everyone. And it's great to see you again here after a couple of years. My name is Scott Campbell, I'm the Chief Operating Officer. I was named COO in October of last year. Before that, I was the Senior VP of Operations and Projects. Mike at the onset mentioned, gray here. I've grown a couple of gray hair since I became COO. But it's all good. I'm a firm believer that the best years of Pan American Silver are yet to come. And it's a great company, as you'll see today. So let me get to my slides here. A big part of my job is safety. A big part of my job is to make sure -- to ensure to do the best that I can that our 17,000 employees and contractors have the tools, the equipment, the training and the opportunity to work and execute their tasks safely safe as possible. I don't think you can declare victory when it comes to safety until they get to zero incidents. It's a long road. It's relentless follow-up and training and communication. I'm encouraged by our safety results in the graph that we are getting better. There's ways to go yet. A big part of our culture that we're trying to change upon American Silver, this continuous improvement. Quest has to do with what we call doing safety differently. It's a school of thought -- it's really a new language developed by Dr. Sydney Decker and others who try to -- the message has doing safety differently has to do with humans are going to make mistakes, regardless of training, humans are imperfect. The objective there is to fail safely. So humans will drop the ball from time to time, but the objective is to really ensure that you've got other safeguards built into your system. So if and when a human does fail, you don't get an accident, nobody gets hurt. So this is part of a plan that we implemented about 2 years ago. We're rolling out safety differently this culture of this language across all of our sites, and we're about 80% complete in rolling that out. We've also implemented a number of initiatives across the company to improve our safety performance. Some of them -- I'll just mention a few of these critical risks, critical risks have to do with those risks that could result in severe injury or a fatality. We're focusing on these critical risks. We've established 10 across the company. And every mine site has the latitude to expand on that list. There are some risks that are site-specific. And so from corporate, we've established 10 and every site contributes. Some of those fall into the sites, [indiscernible] and some of them do not. We're working on collision avoidance systems. We've got thousands of pieces of mobile equipment in this company, in every country, the 8 countries where we operate on our 10 or 11 mine sites, we were implementing fatigue management systems. We've got a lot of success with that. Another thing that we're pretty proud of and which should be completely rolled out by the end of this year has to do with electronic detination of blasting. We're getting away from the manual use of tape fuses to detonate blasts. And we've also implemented centralized blasting where everyone underground of [indiscernible] to the surface we set off the blast and the [indiscernible] underground at the end of the shift or at the end of the blast. So a lot of success with that. It's a long road, but we're getting there. We strengthened our corporate safety team. I can tell you that of all my direct reports. If I don't spend more time with him, it's very close. I spent a lot of time with our VP of safety. We have a corporate team -- and we have a safety team at every single site, which reports solid line to the Operations Manager or GM, but there's a dotted line to the corporate VP of Safety, and he has strengthened his team. He sits in Brazil, and I spent an awful lot of time with him just within last weekend, visiting our sites in Mexico. So root cause analysis, again, trying to find out why things happen, trying to find out why people did what they did. We've -- every mining company has had incidents or accidents around conveyor belts, if I could just take a recent example that's happened to us. We had an injury where a worker was cleaning a conveyor belt where the convert is still in motion. But if you bother to take the time to ask the questions, why was a conveyor motion? Why did that really happen? He did that for a reason, maybe the conveyor belt was going too quickly or maybe the shut was too small. These are all engineering improvements that we have to, as owners look at and really evaluate and correct before it becomes an accident. So I'll walk through the guidance slide. So 2024 and 2025 are thrilled that we brought our silver and gold production in within guidance. Those are successful years. So far this year, Same story, happy you with that gold and silver and from a production perspective and from a cost perspective, too. We're within guidance. So very encouraging results, and we'll continue that through to the end of the year 2026. This is really -- our guidance, of course, is a function of our budgeting exercise that we do company-wide Q3 and Q4 every year, where the regions get together and look at lessons learned from share opportunities, look at past success and then right the formula for the future. So, so far, so good in 2026. I'll go through the operations quickly, some colleagues will give some deeper color commentary here regarding oneoCPO Colorado, Jacobina and Timmins here after I stepped down. So with Colorada, tremendous success from an exploration perspective, from an operations perspective to improve ventilation that we implemented a couple of years ago, La Colorada has really paid dividends. We've renewed our fleet at the La Colorada strengthen the team. We've got a capital allocation request approved for 5 billion to get the 580 decline going on the Skarn project work starts in Q3 on that effort. So we're really, really optimistic. Of course, 1 we published our PEA short a while ago that that Michael already mentioned. And yes, we're on track to produce 6 million ounces of silver this year from La Colorada. So it's going to be a fantastic year. One a CPO, new a new deal for us. We've been operating in the neighborhood as I could take us for 30 years. I want to CPOs about 2 hours down the highway from our La Colorada project, we call it out of mine. And we've really established a constructive relationship with the Fresnillo management team. We've got a safety community going operations committee, regular site visits, cooperation happening, and it's going really, really well. It's outperforming as you can see from the numbers. They've got a conveyor project of 4.2 kilometer long ore transportation underground cover. And that's progressing on budget and on schedule, and it hasn't interrupted day-to-day operations. So it's very encouraging, we're happy with how that project is being executed. Jacobina on track to produce 185,000 ounces of gold this year. So our first mine in Brazil and a young workforce, very motivated workforce in an attractive jurisdiction, fairly easy to recruit people to work there. And we're really happy with how that's going. A lot of opportunities that Steve will elaborate on -- and it's just a fantastic asset in a fantastic jurisdiction. So we're really, really excited about that and leveraging our experience in the Annie's and the Cordero to implement best practices at Jacobina. When I think about El Penon, I think in my career, I can't remember a team, a more cohesive team that I've ever worked with. El Penon 2 hours from Antofagasta there in the middle of the auto Canada does one of the driest places on earth, really surrounded by giants. We've got the Escondida copper mine open pit copper mine up to highway a little bit beside that, the Zaldivar open pit copper mine. We've got a team that's been working together for for a couple of decades through the amount of acquisition and they've stayed on with Pan American Silver. They've really signed on to the Pan American Silver culture they work together. It's a really good blend of young talent with experience and 2 hours from Seaport, good land link, industrial tertiary education available in Antofagasta, the next generation we're hiring. So it's really, really great. Year after year, reserves get replaced, successful exploration programs and just a great team and a great place to work out some innovative technology in the tailings management system there. Of course, the dry air environment really helps at El Penon. In Timmins, again, Timmins a fantastic Q1 this year. We've -- the Timmins has become robust, the operational leaders will talk about that here in a bit. But there's a lot of potential there, a lot of upside to Timmins. I'm really, really happy with how that's going. The team, the technology, the improvements and just a real success story so far this year. So I'm really, really glad and really proud of what we're doing at Timmins. [indiscernible], I was lucky enough to be the GM as said a number of years ago, and it's a really -- it's a very, very special place. It's pretty -- it's our only major open pit. We do have satellite open pits and other operations, but showing those exclusive the open pit, leach pad and pretty simple flow sheet, there's no crushing or screening. There's just run of mine stocked on the pad. And really the key to [indiscernible] has to do with synergies associated with building waste dumps, leach pads and closing the pit. So we're trying to minimize our footprint. We've got a bunch of creative engineering solutions to do that, that are saving us a lot of money and that will continue to follow us into the next few years. So some good creative geotechnically sound solutions to reduce our footprint and to shorten haul distances and really maximize our recovery in gold production. So the window is about 3 hours in the city of Kaho market, 2,500 meters above sea level. Florida, down in Chile, we leveraged a lot of the Chilean culture. Of course, we -- there are siblings. I mean Florida and El Penon, ceilings. Of course, Florida, it's mainly a gold producer, not a lot of silver being produced at Florida. 2 hours from the capital city stents, I want to pay pit.atracaf location for people to work. I am really happy with how -- the -- Chile is a pretty demanding jurisdiction when it comes to collective bargaining agreements. And we've got a total of 7 unions between Florida, the Florida mine and the Elton online, who generally expire every 3 years. So we got 7 units on average, we have to negotiate these every 2 or 3 per year. And we've got an incredibly strong team to do that, who really knows the rules where the goalposts are in terms of these negotiations. And they've got a lot of success renewing these timely, punctual and constructively between the union members and ourselves. So that's been going really well the last few years. not easy. Cerro Moro, some good news. We've got -- pretty proud of our discovery of the Nai-Condor satellite open pit, which we started development of about 1 month, 1.5 months ago. We blend or from that open pit with the underground resource in the process plant. We also completed a small expansion, having to do with our tailings discharge system that grew up by about 10% last year. So yes, the Nadi Condor, the road is constructed, some very good conditions in all weather road, some good engineering extend engineering behind that. and that will prolong the life Nation and other deposits will prolong the life of the asset or by about 18 months, hopefully longer. Moron. Horan polymetallic underground mine located about 4 hours from Lima, Peru up in the Andes, about 4,500 meters above sea level. It's been producing since before World War I -- and we acquired this is 1 of our longest held assets over 25 years, close to 30 years. We had a lot of success there. The thick and tailings plant is working as per design, costs are aligned with expectations there and there's exploration upside to it that we're on, a lot of knowledge, a lot of local knowledge in that part of Peru, Central Peru has been, of course, mining silver for many -- for centuries. So it's all good, and we're on. And then finally, San Vicente, arguably our most remote mine in lactin Bolivia also at 4,500 meters of [ oselevel ]. Really proud of the safety there 1.5 years since the last lost time accident sent got WiFi underground drones, very motivated workforce, good relationship with the unions. And just very predictable, steady state production, just Semicenter continues to deliver -- it's the smallest operation, but it's pulling its way -- punching above its way, maybe. And finally, just a couple of comments about the team before I run out of time. So the 3 people on your screen here, 3 regional operations, vice presidents. And so we've divided this up based on geography, based on operational similarities and based on other factors. There are a number of ways that we could have divided this up, and this is how it is, and I'm really happy with how this is we're just about where I want to be with this. they've got underneath them country managers and -- sorry, country managers reporting to these VPs and then general managers underneath those I travel a lot, I spend a lot of my time on the road to me to really develop this team, and I'm really proud of how things are turning out. So that's -- it's a very, very strong team, world-class team from the left, Misterio has been with the company for a couple of decades. Christian in the middle down in Chile and Argentina. He spent a long time at Yamana and really leads that team his 3 mines were the 3 used to belong to Yamana. So he's really perpetuated the Pan American Silver culture, and he's really he's got -- he's taken it to heart. Kelly is a new hire heading up our efforts here in North America. So that's it for me. I'll hand off to Chris Emerson for a deep dive in La Colorada.

Hi, everyone. I think you can all hear me. That's great. Yes, we've got a bit of technology. I think you -- some people may have been here a couple of years ago and saw this. So we'll get straight into it. We're going to be talking about La Colorada. Chris Emerson, Senior Vice President of Exploration and Geology, been with the company on my 11th year now. So as and what a journey has been. So we're going to look at La Colorada first, and we're going to bid the geology. Of course, we're here in Zacatecas, we're going to zoom in. You've got Durango to the north Sakatecas is probably about 155 kilometers from from La Colorada. Of course, now we've got a new one there, inacipio, which we're going to talk about in a bit. But really, I'm just going to swing around and I'm going to look at Zacatecas such. Obviously, we're going to be zooming in La Colorado. And we'll look at the regional context first, where really we're on the Sierra Marja, and this is the silver belt or silver belts, starts up in the Southwest comes down through Mexico here. And we're right on the edge here. You've got Fresnillo, a big camp, which we'll talk about in a bit. But really, yes, we're on the structural Northwest, Southeast, and you can see all of these major deposits, which line up on that trend. You've got San Martin sitting 30 kilometers as the crow flies from La Colorada. That's the scan deposit, by the way. So we're zooming a little bit. We've got more of a district kind of geology. The green is limestone and then you've got these browns, which are the volcanics. Now the volcanics are where the main silver deposits sit in the Sierra Madre which is the lower and upper botanics, we'll get into a little bit more detail on those as well. But now nearly 9,000 hectare sitting in and around this area and La Colorada sitting right in the center there, we're going to zoom in and take a real look at the local geology now. And that's going to -- here's a surface map here we have it. The red are the main veins that we have from Recompensa, Amelio, the HC and Christine and over the last 6 months, we've been releasing press releases on the discovery, and we're going to go into more detail through the video here. And the green outline is the scam which sits below all of these veins in the limestones very quickly, we'll give a quick overview of the site layout. We got the tailings down in the south. [indiscernible] at the main plant in the middle there and the shaft -- the main operating shaft in the center of the new Guadalupe shaft, which is now giving us that ventilation, which is the -- Scott was talking about the return back to that 6 million-ounce of production. So here we are again. Again, we've got those red lines, which are the main veins. And really the success story which were released in March are these new veins that sit over here to the south and to the east. Drilling has been ongoing now. We're doing around 80,000 meters a year. which is giving us these discoveries that we'd be seeing here, we've got all the silver grades. We are the main mines and you see the HW NC2 and the new Mariana, the extensions of NC2 going east -- and really, all of this is still open as we go further east to the South Cristina, which are these larger regional -- larger structural plays in there, as I think moved out, gave extension and allowed the fluids us to come in. So here, we have the silver grades. Here are now just putting on the current principal vein reserves and resources, the shapes there, Mariana, we've got someone that Christina and then we're going to move into showing some more of the principal or the secondary structures, which we've been coming out with recently for the [ MENA ] Santa Renamo systems where we've got some inferred. And that's where really a lot of the success has happened, as I was mentioning, kind of south of that NC2. And then the blue, which -- and we're looking above that, was the scan, and we're going to, again, come into a bit more detail. Here's a very quick slide to show you how successful we have been through the drill bit here, up to nearly 80,000 meters of drilling. We're sitting at around million ounces of silver. And certainly, the inferred resource in midyear 2025, we had another 50 million ounces of those southerly structures and to the east on the NC2 and Mariana. So success definitely, again, there the those both blue shapes of the scam, which sits below in the limestones and then all of these different structures which make up that reserve resource for the veins. Here we're showing the new veins that we've discovered. So these are not in the midyear 2025 resource -- these are new structures that we've now defined, and they will certainly be coming into the 2026 midyear, which we're working on at the moment with the Technical Services team. So lots of upside from what we've been releasing at the moment. So December 25, March, September, we're coming out with some really nice results. Here's just a few examples of those results. Looking at the Mariana is still a long section. And we're looking at multi-kilo 0.5 kilo and so really, really strong as we look across there. And we're going to be showing that the exploration potential as we even push further outside of that long section to the east is there as well. This is the NC2, Again, just showing you some of those examples of some of those drill results that we've been releasing up to 10 kilos over 20 centimeters and multi-kilo meters at 10 ounces, which is -- and with the lead zinc as well at over 10%, 15%. I -- so now we've backed out. Again, we're looking at that vein rate. Now we're going to focus a little bit on that new veins that we have been finding and multiple veins -- we're going to flip and give you just a quick cross-section across that are, and I'll just stop it here so I can explain it a little bit more. So here we have the NC2 and the Mariana. They're in the reserve and resource. Here, we have the 2 galleries that we are currently exploration galleries that we're currently developing south on the 588 and the 488 level. And actually, Elenavein, which was a new vein, a blind vein that we found as we developed through that on this deeper gallery. And then we're heading towards the file minas, the microliters and all of those structures to the south. The largest structure, the Christina again, is still open to the east, and that's where we're heading to on those exploration. That's going to bring all of this potential resource into production. So we'll flip back out. We'll zoom into just 1 of those, which was Filomena which had some very good results, which we released -- as I mentioned, again, this is a new vein that we hope to bring into a resource. I've got 2 machines just drilling on this at the moment with over 15 drill machines going La Colorada. So I'm going to pause it there. highlight the 5 meters over a kilo silver and a combined 10% lead and zinc. Just 1 of these areas that we've been drilling -- and this is actually specifically very good because it's this contact between the limestones and the volcanics, where we've started to see more of a replacement style mineralization, which is great for us. And all of these others, we've been releasing over over the past year. So lovely upside in all of those new veins that we've been discovering and looking at where this potentially could go. So back in September 2025, we released S-10 25. Now as you can see, that went through the veins. It also hit CRD, which is carbonate replacement style deposit and also went into scan. That's sitting 450 meters over from 903, which is one of the skarns in the current resource reserve. That's over 450 meters to the east. We found skarn again. So for an exploration geologist, this is really good news. So I thought it was worth highlighting to really show you that we have an expansion and we're hitting veins, and we're heading skarn further out to the East. So now we're back to that overview. Looking down at the the deposits. And now we're going to talk a little bit about skarn and give you some details as to where we are with that, and then Martin will come in and give you some more details on the recent PEA. So blue, the skarn, the update -- the resource sits around 2024. We've got over 45,000 meters of new drilling that's got to come into here. The dimensions of this, I mean, the skarn is 1.6 kilometers, 700 meters by over 900 meters in depth. We've got drill -- I'll show you some dual results with over 300 meters of sulfide. It's an exceptional discovery from 2018, going to swell that around and show you those 3 different deposits that we have, we call the 901, 902 and 903. Martin is going to touch on this a lot more, but then that new -- although new vein inventory that we find that resource that we're finding over at the top has really changed our viewpoint on how to mine this in the future. So we're going to zoom come back around. We're going to show you where all the new drilling is, that's the magenta here or this new drilling that's been happening, infill drilling, the current resources to bring some of those inferred up into indicated and doing some exploration slightly off to the east at -- and when we look at the scan, we've described this as you've got the volcanics, the pink at the top. And below that, you've got the limestones the blue. Now when we get intrusives coming up, we then -- the hot fluids go into that limestone, create alteration, these garnet, the green scans around these intrusives, and that causes the porosity and it allows all of the sulfides to come in afterwards and mineralize. And that's what we have here. We have a very classic mineralization intrusive the pink in the middle the deposits sitting in and around these hot intrusives, which have been mineralized and giving us the sort of resource that we have to date. Here's a little example of some of those drill holes from 2018 that we've been releasing over these years. I mean when you're drilling 380 meters with a combined 54%, 2% lead and nearly 3.7% zinc, I mean that's pretty phenomenal. 439 meters of sulfide 250 meters of sulfide with exceptional lead, zinc and silver results. So it's been a real pleasure to work on this deposit. Again, mentioning we got those 45,000 meters that are going to come into that resource reserve. That's going to give us over 360,000 meters of drilling into this. So we've got a lot of confidence in what we have here and in true weatherman style, the sun is always shining in La Colorada. Over to you, Martin.

Thank you very much, Chris. Okay. Hi, everybody. Welcome. Good afternoon, let's go advance a little bit. This is the 2024, what we had in 2024 with the sub-level caving idea, and we thought we had a really good plan. caving operations, caving mines create subsident zones and then we found all these fabulous veins that are above that in the East. So we realized that we needed to take another look. So we're going to long-haul stoping as being the mining method, and you can I'm just going to pause it quickly here. Okay. So this is the La Colorado, the expanded project. We have the orange color, which is the existing mine, the reserve. We have the lighter blue or the turquoise color which is the vein resources that are in the East. And then underneath that in the blue is this much more massive skarn deposit with hundreds of meters of width as we go. And you can see the total resources that are in the table at the bottom. So that's what the overall project looks like as we go forward. And is it moving. Yes, here we go. So this is a bit of a time line of how the development of the La Colorada skarn is going to look. And you can see here that we've got this ramp that Scott mentioned that's coming down, this quota 588 ramp that the Board of Directors just approved and talk a little bit more about that later. These 2 blue vertical lines in the -- on the right-hand side, those are the shafts. It's a production shaft and a ventilation shaft that are going to come down. We're calling them the East shafts, and we're going to go to our board for approval for those later in the year when we've done a bit more work on it. And you're going to see down here in the bottom left-hand side of the screen, the cumulative silver production of the whole expanded project as it goes forward and the time line on this horizontal red and green bar. So I'm just going to go forward. And you can see that we're mining mostly the reserves right now as we go and we're developing the mine. And now we're just starting production. We're in the sort of preproduction ramp-up phase of the skarn long-hole stoping. You can see some turquoise color coming in the vein mine above, and you can see these stoping blocks. Now each one of these little blocks for reference are about 30 meters high, where they are. They're 30 meters high by 30 meters by 20 meters. So they're roughly 50,000 tons every time 1 of those comes out. And you'll see as we advance forward. We're going into the green area now, which is the higher grade payback period, and we've already got over 100 million ounces of cumulative silver production as we're rolling this forward. And we're now right into the green squares. Those are the high-grade areas of the skarn deposit that we're going to take out to get our payback in the initial phase of the mine production. So keeping ongoing, you can see that the vein mine above is going. We're developing the -- continuing to develop the mine, and we're now into what I call the full production period. And the full production period, we take about 8 stopes are in full production at any 1 time being marked of 24 stopes in this full cycle between drilling, blasting, backfilling that type of thing. So that's 24 stokes, 500 tonnes a day roughly per stope. We get to 12,000 tonnes a day of scar and stope production plus 1,000 tonnes a day of skarn development production, plus 2,000 tonnes a day from the combined vein mine reserve and the Van mine resource, which is above. And that's the -- that's how you get to 15,000 tonnes a day for the skarn. And you can see that cumulatively for the whole mine since 2026, the cumulative production has now gone above 200 million ounces of silver. So now we're running forward. We're sort of finalizing the vein mine production. The reserves are mined out essentially, and we're finalizing the resource above, and we're continuing to very sequentially mine out stope by stope the vein. And you can see the silver production going up to 300 million and on the way to almost 350 million ounces throughout this life of project that's going to go all the way out to to 2068. And that's just -- I'm not going to be worrying about that. that's kind of how it goes as we go forward. And then we're going to do a little bit of a spin around here just to see just how massive the skarn deposit is, hundreds of meters across compared with the little veins that we're mining above. And there's little veins are small, but they're super high grade. So that's kind of the idea of what this project looks like. And we see the sort of material handling system coming up here now with the production shaft and the haulage levels, and lots of ventilation required has got deep opine. So we need big shafts to get all that air down. We're going to need a refrigeration plant on surface. And then we're going to spin it around and you can see the topography coming in now, what it looks like and we're going to spin it up to see what the surface of the mine looks like. So now we're up on surface, and we have the East production shaft and the East ventilation shaft there together. And the yellow ribbon that's stretching across, that's the overland conveyor that will go to the process plant. And now we're just going to go past the south ventilation shaft and the paste backfill plant that are there. And we're going to come now continuing on the overland conveyor. We're going to go past the new electrical substation that we'll need. It's going to need a lot more power to run this big operation. and we're into a 24-hour live coarse ore stockpile storage. So part of the underground development, there's going to be a garitory crusher underground that's going to take it down to 80% minus or 82 millimeters. And then on to this Corso storage. And then from there, it's going to go into the grinding circuit which is SAG mill ball mill with a pebble crusher, and that's coming right up. We see inside the plant building here now and then from grinding into selective flotation concentrate thickeners, concentrate filtration, concentrate storage and into the tailings thickener and then some were the tailings off to the tailings, some to the pace backfill plant. And now we're going into the the camps and the other sort of surface infrastructure that we'll need and I'll just stop it there quickly. That's a 1,000-person camp that we're going to install for now. with the infrastructure, the truck shops and the offices that are all associated with that. So we'll just let that 1 run out. Treste storage facility. It's actually in the south part of the property, even though it's showing in the top part of the page. Great. So we'll now go back to the slides. And if we go to the slides, this 1 -- this slide is in your package, but Chris covered it. as is the next slide, so I won't dwell on that. The next slide is essentially showing the comparison between the PEA, which I said was a much larger 50,000 tonne a day sublevel caving operation versus the sort of revised approach that we had much more conventional, lower-risk mining method, lower initial capital, higher NPV, higher IRR. And you can see see the financial metrics of the operation on that slide. And also on this slide, as you saw, very long life, still large-scale very low cost because the credits, the zinc credits are incredible. The zinc and the leg credits really bring the silver ace down $5.2 billion NPV 5% at our upside case metal prices, which is 75 silver and $45 base case, it's a 2.6% -- $2.6 billion NPV 5. So moving on to the -- so the profile, the silver production profile is in the top chart and the zinc production profile in the bottom chart. And the opportunity here is to extend that higher-grade payback period for the project. And that is going to be a combination of the high-grade vein discoveries and more exploration in that area that Chris talked about as well as continuing to explore for more and more skarn mineralization which is looking extremely [indiscernible] right now. Zinc production, very large zinc mine, 240,000 tonnes a year zinc mine in the initial period. This slide is a bit of a demonstration of where we think those discoveries are going to come. And if you draw your attention to the right-hand longitudinal section where it says new vein discoveries that's going to the East -- we think there's a great opportunity in that area and also to the east and the skarn as we move along there to draw more at depth. There is some optionality to do -- still do some caving, which may be in new discoveries or maybe deeper below where we are right now. So we'll retain that optionality. So La Colorada right now, if you look at it on a reserve and resource basis, it's already one of the world's largest silver deposit is right up there with Fresnillo. Graph chart shows it. And also the expanded La Colorada mine, if you look forward into the future and compare it with other operations current would be the largest primary silver production in the world. That's right up there with Wanicipio that we also own 44% of. So this kind of shows the evolution of La Colorada as a major primary silver mine going from where we are right now to a very low cost large production silver mine in the future, a complete transformation of the mine -- and also, as I mentioned, a very large zinc producer as well. We talked a little bit about long-haul stoping. Certainly, one of the opportunities that that we're looking at right now. We're working hard on advancing our engineering studies. We're working on a geotechnical domain model right now. There may be some potential to expand the sub-level interval beyond 30 meters -- that would mean a lot less sublevel development or some less sublevel development depending on how far we can go with that. That's certainly one of the things that we're looking at. Yes, some different engineering studies. We're doing a lot of test work on pace backfill as well right now, looking at cement contents and strengths and what we can do in terms of sequencing, there's probably some opportunities in that area as well. The other opportunity would be when the vein -- sorry, when the skarn infrastructure is in place to look at expanding the high-grade vein production so that it will be a higher percentage of the overall production. And that could increase the silver output or at least maintain that silver output for a longer period of time beyond [indiscernible] few years. This is the very conventional flow sheet that we have that we saw in the video for the skarn. A few of the things we're studying right now. One of them would be whether or not we should use the existing plant to process the vein material. There is an opportunity to perhaps get higher accountability for some of the payables by putting the vein material through the existing plant, particularly for gold because the gold gets quite diluted. But the skarn doesn't -- or has very little gold in the vein mines, as we looked at the East are quite interesting, becoming more interested in terms of the gold content. So that's a trade-off as well as whether or not it justifies having a copper circuit in the flotation plant that we would switch on from time to time. Not a big addition to the overall NPV of the project, but it could be worth doing and switching on and off depending on where we are. And this is the capital estimate, 1.95 million that we've been working on with Worley as well as a lot of other help from really fresh rate engineering companies, sorry. And I probably should have mentioned on the capital side of things that we intend to delay the expenditures on the plant. The critical path is always through the mine in this project. So all the mine development decline shafts, that's all critical path. The plan we've got time to defer those expenditures to just in time so that we help our overall rate of return in NPV on the project. And just on the decline, the Board approved $265 million to do this decline. It's going to be a large skis decline, 6-meter by 5.5 meters, we're going to be able to use 65-ton trucks, articulated mining trucks in that decline. The rest of the development will be 55. And the we'll also put in the permanent dewatering infrastructure. That's why there's so much money there. There's a lot of dewatering infrastructure that needs to go in as well as the power upgrades that we're going to need to be able to power all of that and the ventilation. So that essentially concludes my presentation Q&A.

Matt Murphy with BMO. The first question, just you sound like pretty excited about the opportunities to find additional skarn material. So is that something that's being actively drilled right now? And -- and is that mainly as the diagram shows life extension potential? Or like is there a scenario where this mill ultimately gets even bigger if you find another skarn?

Absolutely. I mean, really at the moment. And certainly, the recent press releases has really focused on the new vein drilling, and that's where we've really prioritized over the last year, I would say. We have been doing some scout like S10 where we showed deep skarn hits, et cetera. We haven't -- and certainly, we'll be moving towards once we've got all of these veins. We're going through the mid-year at the moment, so our priorities to really get a lot of that resource, potential resource into the statement at midyear. Then I think we'll then switch to maybe looking at some more of that dedicated scan exploration further east. So yes, it's a priority, but not at the moment, our priority is to get that vein resource to a good enough category so it can enhance the production profile in the future.

And in terms of the production rate, you do run into some limits on what you can do with long-haul stoping and the pace with the assumptions that we have and the turnover time for the stopes and the pace backfill because remember, we're not just mining stope sequentially along strike. We're also mining them across dip as well. So -- by adding more strike length, yes, there is option that you could incrementally increase that production, but there is a long development scenario on this. And I think if you go further east, we probably would need another ventilation shaft in the East as well. But yes, the other 1 is maybe you do sub-level caving out there. The reason we don't want to do some level caving and the other deposits is because we don't want that subsidence to impact our -- losing our vein mine. So it depends on how far east the veins go and our infrastructure for the veins as well. But continue with long [indiscernible], yes, maybe not massively, Peter.

And then just one on the CapEx doing the mill purchasing just in time. I mean a lot of companies, when they decide they want to do something, try and lock in get those -- get the equipment ordered because there's inflation risk -- so how do you think about bouncing that off?

One of the trade-off studies we're doing right now is we're looking at equipment that we have already in the company. We bought a fairly big plan to see if that makes sense to use that. But that's certainly something we're working through. No, we think that the right approach is to delay that plant as long as we can. There's no point having it there sitting around doing nothing. Steve, do you want to weigh in on that?

A quick question. Sorry, a quick question. You talked about not looking to increase the amount of skarn that you're going to be taking out -- but in terms of the 15,000 tonnes per day, I think you've allocated about 2,000 tonnes per day for the veins -- high grade veins and this continues to find more and more wins -- is there an opportunity to increase that tons from the vein side? And is there any constraint there?

Well, the constraint right now is the infrastructure that we have in place and the plan that we have in place, we think we can increase the existing plant. But we would need more ventilation because we're going to use quite a bit of ventilation for developing the skarn. So probably the best opportunity is when the skarn infrastructure is in place. I could see quite a decent size increase in the vein production. That's one of the studies that we've got coming up for the remainder of this year as to how that would look. We haven't completed it yet. We're going to wait until we get the resource update done as of midyear, and then we'll go through the process of looking and seeing what we could possibly get out of that. There's probably room to increase the current plan a little bit, but where our shaft right now is pretty much maxed out. We are holding some waste up the ramp. All that 588 decline waste is going to go up the ramp, so we could maybe get some extra ore up the ramp too, but not a real big amount for the time being. When there's skarn infrastructure is in place with the big -- those big shafts, then that's a game changer. So yes, definitely, we can.

But it's not just about extending the high-grade or the 20 million ounces across it's looking to maybe increase that amount as well.

Yes, absolutely. And we do have the option as well of if you built the other plant to keep the existing plant going. It's a beautiful plant. I mean there's a pretty much a new plant, and it's a beautiful plant. So it was just an efficiency thing in operating cost that we decided to go to the 1 plant, but there is that potential there to keep that on running as well. Can you mention it on the mice just [indiscernible] We're taking a break for 5 minutes and come back at 2:40. Thank you. Good afternoon, ladies and gentlemen. We're back. We're going to be looking at the Timmins and just introductions first.

My name is [indiscernible]. for Canada, here been with the company for 9 years, sorry.

Excellent, excellent. So we're going to tag team a little bit. So [indiscernible] is going to come in with some more specific information as we run through the video. So let's get started. We've now -- we're now in Canada. So we're going to be looking at Timmins operation. We were 560 kilometers north in Timmins, specifically, we're in the Abitibi Greenstone Belt. So stretch across Quebec and Ontario and really, the takeaway from this slide specifically, don't be scared of all the colors is the black Porcupine Destor which is the big structural control, which comes across 400 kilometers, and that's where all the main gold deposits sit along this structural -- regional structural control. And Timmins were sitting right over here on the western edge, that's produced around 80 million ounces, the Timmins camp alone, over 300 million ounces coming from the Abitibi so far. So -- let's -- we're going to zoom into timing specifically, talking more about where we sit, Pan American and the major deposits within the Timmins camp McIntire Dome, Palmer, Bell Creek sitting over there; and Timmins West down here. Obviously, we came out today with the press release on the exploration potential. We're going to be looking at -- some of those projects, which will fit into this larger idea that we have now for Timmins. And Al is going to also pitch in with some of those details. So Timmins, right in the middle, you've got Bell Creek, which is the main center where our processing plant is for -- and we ship all our or from Timmins across and up into Bell Creek. So looking very quickly at the reserve at Timmins we're sitting currently at 850,000 ounces. We've maintained that over certainly since we've had the project in 2019 through the purchase of and really maintaining that with constant drilling. And obviously, the press release today talked about the deep drilling that we're doing at Bell Creek, which is I'm sure deposit, let's face it. So really good success there. And we continue to drill and got 120,000 meters to drill over this year in the mine and the projects themselves. So here we are zooming in. We've got the tailings over there on the left-hand side, Bell Creek mine, the processing plant there. And now we're going to strip that away and look at where the actual Bell Creek, which is an orogenic gold deposit. Now orogenic gold deposits, they need structure, which we've got the Porcupine Destor. That's the main control on is you need that fluid way for all those fluids to come up from this bigger tectonic events. And you need rock, you need the right rock type. So these are all being cooked, the metamorphic and also very characteristic of these orogenic are very deep. Generally, there are 2 kilometers plus. And if you can now look from that recent drilling that we released today, we're talking about 2.6 kilometers down. We're around our current resource and reserve sits at around the 1925, and now we're down to 2,600, another 700 meters of mineralization, which we've now been able to define, put in that deep drilling, I mean, almost 17,000 meters specifically on just that really deep stuff and being able to release today. We're just going to zoom in there and chose some of those drill results, sort of 18, 19 meters at 3 grams a tonne gold, 6 meters at 3.5 meters at 5.65 grams a tonne gold. So yes, some good information for us to then make that decision that we wanted to deepen that ramp. So -- that's certainly been going on since 2023. So nearly 50,000 meters in the whole project totally.

Good. So yes, I'll elaborate a little bit on the Bell Creek shaft extension. So just a bit of background, 2020, 2021, as the resources were getting deeper and deeper, we've kind of realized the current infrastructure that we have, which the shaft goes down to 1080 level would be a constraint. The whole business would be quite far to get to below 2,000. So as Chris explained, to justify any shaft, we would need to demonstrate that the resource will continue depth, which, with the success that we've seen with the exploration, we kind of show that. And based on that success, in May on 6, the Board did approve the shaft extension. It will be a 625-meter extension of the shaft which will bring the shaft down from 1080 down to the 1,705 level. And we will talk about that in more details in the slide deck to follow in a few minutes.

So also in the press release today, we came out with 1 of the so-called satellite deposits, which was the Vogele. Vogl veins we call them, set over here close to the current infrastructure of the Bell Creek. This was explored in 1968, actually. It was found in 1968, several of the companies in the history, drilled it, bits here and there. Currently, on the resource reserve book, we have 60,000 ounces in indicated with around 130,000 ounces of gold inferred. So sitting here, we already have an inventory of potential ore. And from that, we came in again around 2023 and started to drill some holes and really showed we had good continuity. We had better grade than we actually thought was going to be there. And now this appears to be a set of veins, which we believe there's more potential at depth. Some really good grades here, looking at nearly 20 meters, 8 grams, certainly, 12 meters. We've got 9 meters at 8 grams, 8.73 grams a tonne gold. So some really, really nice, nice intercepts with good gold grade.

Okay. And I'll talk about the plan for 2026. So -- we started drilling on surface in 2025. In April of this year, 2026, we will be extending the current drift on 610 at Bell Creek, which is an exploration drift. So we'll start extending that. It's an 814-meter extension. What this will do is it will allow us to drill the deeper part of the Vogel from underground. It's getting too deep to drill from surface. So by having that underground exploration drift will allow us to basically infill the lower part of Vogtle. And that's shown in the green lines there that would be the drilling over -- for the rest of this year and into 2027. And the green lines from surface is the completion of the surface exploration program that's planned for the rest of this year. So that's essentially going to be 2026 and into 2027. We should have the infill drilling program pretty much complete in the next 1.5 years to 2 years.

It's probably worth mentioning that, that exploration access, Griff, will also drift tools have helped the production in the future. Yes. So we're going to flip across go southwest of Timmins sitting in the center there. We're now going to be in the Timmins mine area, where we've got a large -- a good package and 14,000 hectares and Timmins, the Timmins Mine is really a success of discoveries, multi-different deposits on a structural trend, the $144 million. We're going to strip away the surface here and have a look at those actual -- those deposits, which have been constantly being found as they've moved Southwest. And again, in the release today, we were talking about Samsung, which was discovered a few decades ago. We had a lot of drilling the 60,000 meters of drilling on it. What's called the 144 South. And it was while lower grade, it's still going to add 120,000 ounces of gold and hopefully, we'll be building that out in the future. We do have an access exploration gallery here drift. And again, the green line showing the potential drilling that's going to happen over over the next 6 months to a year as we build it out. And also that exploration gallery will give access for production as well.

All right. And last but not least, Gold River. So Gold River sits about 3.5 kilometers to the south of Timmins West, it's a 1,100 hectare parcel. So Gold River has 2 main deposits, the Gold River West on the right side and the Gold River East. That's where most of the 1.1 million ounces of resource hits. So the Gold River is a refractory deposit -- we are doing some mine design work, as you can see there in blue. That's the mine design work. And we're also starting to do milling studies. We actually started that in 2025 to get some metal report so that we have a better understanding of Gold River. And the mine design work that we -- we'll talk about the milling and the mining design work a little bit more with when Eric joins me in a minute. But this is to support a refreshed resource estimation coming into the 2026 midyear.

Thanks, [indiscernible]. Yes. Again, it was in the resource, sitting there over 1 million ounces of inferred. With the current environment, yes, we're finding additional value within the portfolio and really build to that Timmins camp strategy as such. So yes, as Al was saying, there's a mine design. We're building towards that resource for the mid-year '26 and certainly good things to come from that project, which again was in the release with some additional results from the previous company. We're now going to shoot back across to Bell Creek. We're sitting -- we're going to have a look at the Whitney project, which again has been in some of our press releases over the last several years in the exploration updates on a yearly basis. Whitney is a joint venture, we have 86% of this. It's right on strike from Palmer, which sits over to the East. So again, we're on the structural trend, which has controlled all of these different deposits from brew land to Bone [indiscernible]-- and don't forget, Holnomine was historically 1 of the highest-grade gold mines in the Timmins camp itself. Just doing a little 360 there. We're going to show the old workings. And I mean this produced nearly takes 2.6 million ounces of gold at around 10 grams a tonne. You can see here those old working sitting deep. But really, our focus of our exploration has been on the top portion. We've drilled and have been drilling [indiscernible]. And now we've moved across into [indiscernible] we're finding within those old stopes in the hanging and footwall, there's obviously remnant gold that wasn't mind because it was deemed low grade in that particular point. So it's really been -- the idea has been going in and drilling and updating the current resource, which sits at around 0.5 million ounces of gold as it is. So certainly, [indiscernible] is -- we released this in December 25 and some of the results here. I mean you're looking at 2.9 at 36 grams gold, certainly 3 meters at 11 grams gold. Certainly, very good grades, which shows you this historic area has still got mineralization. So we're looking forward to building out, doing additional work. We've got a program to drill this towards the back end '26 and into '27 really as we're focused more on our current projects of Vogtle, which is obviously very close to our current infrastructure. As the plan as mentioned. And I think that's over to you to you, [indiscernible] and the more technical side.

So soon as the EU finishes up, we'll start off with the slide deck next, and I'll welcome Eric Lachapelle, he's Director of Operations for Timmins operations. So -- yes, okay. So yes, just to reset things here. Timmins West operations that's Timmins West complex. That's on the Southwest. It's about 20 kilometers southwest of the city Timmins. You can get to see Timmins sits almost in the middle of both operations. And then we have our Bell Creek mine complex and mill complex on the top right side of things. So right now, our -- all the ore from Timmins West get struck through the city of Timmins, about 42 kilometers to our Bell Creek mine and mill. And we will talk about a few projects that we have, one being a new haul road that will be very beneficial, not only on the cost side of things, but also on the safety side of things because it does bypass some of the cities. So I'll turn it over to Eric.

Thank you. Good afternoon, everyone. Kicking off with the Bell Creek shaft. So at Bell Creek, our current mining centroid is 300 meters below the existing shaft. And that Century continues to deepen as we progress with mining. This stretches our capacity to deliver the ore to surface for the mine. With the approval of the shaft extension, we will be deepening to a final shop depth of 1,705 meters from the original current 1080 level. This will be resulting in an additional 625 meters of the shafts total depth. This will help to reduce operating costs. by reducing the trucking requirements for the market or will also help extend the life of the mine by allowing access to deeper resources. It helps as well to reduce greenhouse gas emissions by consuming less diesel overall for the hauling. The time line on the bottom left shows how the diamond drilling, the geological modeling, the mine design as well as the shaft engineering work has all been completed for this project. Now the construction and development work will begin with the commissioning targeted for 2029. Speaking to the challenges of ground stability at Bell Creek. Many measures have been taken to address these as we have experienced some challenging conditions at the mine. Pace backfill is now fully integrated into the mining process. This is allowing us to reaccess certain areas of the mine, including the Central Zone, which we have now reintegrated into the mining plan. Specialized ITH drills, borehole stabilizers -- sorry, Bohol stabilizer products, enhanced stress modeling are all measures that have been taken to tackle these challenges at Bell Creek. Moving on to our soon-to-be completed haul road. With the goal of reducing costs for every ton of ore that comes -- that is hauled to the mill from Timmins West. We reduced 14 kilometers for every round trip for the trucks hauling to Bell Creek. We also bypass areas of the city of Timmins, reducing the strain on the city's infrastructure and improving overall safety. Also shown here besides the haul road -- you see our tailings facility, just midsection to the East. The current life of our tailings facility carries us to 2035 and we have acquired adjacent land for other expansion potential of the tailings facility. Gold River, as mentioned, is located 4 kilometers south of the Timmins West Shaft. We advanced metallurgical testing and engineering studies for processing the refractory material at Gold River. We've completed scoping level assessments on flotation, pressure oxidation, additions to the existing Bell Creek processing circuit. Here at the bottom of the slide, you see the planned view of the Gold River mine design as it sits today. Now flipping to our long section. Down below, we see the planned time line, sorry, for the development of the Gold River project. In 2026 and 2027, we're focusing on the PEA work for Gold River as well as infill drilling, which carries us to 2028 and 2029, where we'll be focusing more on permitting towards achieving a bulk sample in 2029. I readying us for production or a target date of the 2030s.. -- mill capacity at Bell Creek. As you can see from this graph here, we do have a gap from our total milling capacity of 5,600 tonnes per day from what is currently being fed from both of our mines. We're looking to shorten that gap with the addition of all the satellite deposits that we've been discussing in this presentation as well as continuing to extend the life and the reserves of the existing deposits. We're also looking at toll milling potential for our neighboring deposits within the Timmins camp area.

All right. So I think the main story here is that when Pan American acquired TA acquired the Timmins operations. when Pan American acquired Talon and Timmins operation in 2019, we were actually supposed to be closing this year. as you can kind of see with the long-term vision in the project pipeline, where we have reserves being mined into the 20s -- the Bell Creek a deep extension. You can kind of see they're kicking in into the 2040s. We have Vogtle that's coming in, again, basically on top of the Bell Creek, Gold River, Samson. These are all projects that are right there in front of us that we will be allowing us to go into the 2040s. So not a bad story, right, going from 2026 to 2040s. And that's basically the Timmins operations story.

So and jumping to from Canada, we're going back down to Mexico. We're going to talk about Manacipio, which really is the sister deposit, very close to La Colorada. We've been here before -- but really, I mean, talking about Fresnillo and the district of Fresnillo, where we could -- where anisipio sets, 60 kilometers from Zacatecas City, 6 kilometers from from Fresniatown itself. And I mean this is a historic mining camp, plus $3 billion. I think Mike, you said $4.5 billion has been mined from the [indiscernible]. It depends how the district, how far you project that because -- this really is world-class. We see all of those deposits again sitting on that Northwest Southeast sort of Sierra Madre on the edges of that that tectonic break. And so really zooming into what is Fresno, the town Saucito, which is a Fresno operation sitting directly east of Winnicipio itself. Over 7,680 hectares sitting really on that corner there. And Yes, from the purchase of Max Silver and the discovery that they made right in this historic camp cannot be underestimated. And Well, when we zoom into that district and sort of closer in geology, you see the main veins right on the corner and we're going to show that in a bit more. But really, I wanted to -- and this -- just in this image here is the historic mines per annual and San Luis are all sitting over there, and they were higher up and due to tectonics and block shifting when isipiosit undiscovered down here in the Southeast. And as we move through the silica cap, you've got the whole system preserved -- and really, that's the story for the exploration that I'll be talking about in a little bit. Here, we have the strike of the main structures from public information on the Saucito side. And of course, that corner where when acipio sits is where all the resources and the exploration and the discovery was made. So there's the portal where they're currently developing the ramps, et cetera. And really, we're going to strip away the surface now, and we're going to focus on the silver grades. And this is all the silver grades from that drilling and channel sampling from the database. Here, we have the solids of the resources -- and you can see this funny structure sitting out 90 degrees to the main structures. We'll talk a little bit about that. That's Vanadis, which was a recent discovery several years ago. But really, you've got the dark lines of the infrastructure. I'm going to flip that around looking northeast. And really the takeaway here is that you've got all of these different stacked veins along the principal Northwest Southeast and then there's 90-degree Vanadis, which is in current resource at the moment. he was just going to list out all of those different parallel structures to the main structure of Valdecanas. In the footwall, the Raman and 2 and in the hanging wall anticipate pre-anticipate -- not forgetting that 85% of the current reserve sits in Valdecanas, which is really the mainstay of this at the moment of the mine at the moment. And with 50 million ounces of inferred resources still sitting at anacipio, that's certainly something that we can see being drilled out as we move through in the production cycle. Also, you've got nasipio. Not to be confused by Winsipio mine. This is the encipiovein. Remember that Valdecanas is where the main structure and supports all of the current production, when a sip sits 800 meters to the south and Venetas at that 90-degree coming out from the main structures. We're sitting about 300 meters below surface -- and as I mentioned, that was a blind discovery. Just looking at the reserve replacements at the moment. Recently, Fresnillo released the current resource and reserves for Wonacipio. We're at 132 million ounces of silver, having started off in 2023, we're at 122 plus you've had the production. So yes, there is a positive increase in reserves in silver ounces. Having said that, the average grade of that silver is decreasing. They're starting to drill further down structure, which is more polymetallic rich, which has been described in the past about the enasipio mine. So we are moving out of that Bedanone, should we say, which goes around around 1,600 -- then below that, you get more base metal. But it's still -- I mean you're averaging average width that we cipro6meters, but it goes up to 30 meters wide, which is quite incredible for this deposit. And of course, we're still sitting on 1 million ounces -- almost 1 million ounces of gold. So stripping away all the others and Valdecanas. And let's just talk a little bit about that great distribution that I just spoke about. Here, we have all of those silver-rich blocks over 0.5 kilo sitting still at upper portion of the Valdecanas -- and as we move down and depose those pinks come down, and that's where all of the base metal rich is -- so it really is a story of that Bonanza at the top and that deep sulfide mineralization towards the bottom. Going back to the silver and we'll just flip it around, so you kind of get a good idea of that bank structure itself. And the sort of the great traces are all of that drilling that's happened. Here we have that the measured indicated and inferred resource shapes around it and obviously, further down at depth, you've got all that inferred resource, which still has -- still can be drilled further and add it into reserves in the future. So where next? I mean, certainly, from an exploration point of view, converting that inferred resource into reserves will be certainly a priority -- and that's on the current structures we note at the moment. Also, we have the anacipio vein, 800 meters south. There's only a small portion of this, which has been defined in inferred resource that's still A lot of work to be done on drilling that structure south. And then we're obviously sitting on a good area where we've got the structure that we need -- and this is all deep. Remember, I mentioned that if we look at the historic and look at per annual, et cetera, which were eroded down and they were exposed at surface, when we look at Winicipio and then further to the south, west, certainly, everything is at depth. So that is going to take some time there's the Canada under structures and also Metranet, sitting 7 kilometers south of currently the anasipios vein and mine. So still, I mean it's prime exploration areas and certainly a lot of work that I know Fresnel are working on, and it's been a pleasure to work with them. Thank you very much.

Thanks, Chris. Again. Just we'll quickly run through some slides on [indiscernible] Well, we won't One of the other -- now here we go. This is just a planned view of the mine area. You can see the vein system that Chris has just been describing. As well as the conveyor project that comes from the mine up towards -- I'm working from the bottom up here, actually up towards the surface, the underground portal, processing facilities, tailings down mine offices and entrants there. So just a planned view of the site layer. This one, Chris just covered Worth mentioning that the silver reserve and gold reserves, they're maintaining the grade is coming off a bit, but the total contained answers are being maintained and replaced. And I think, as Sam mentioned earlier and Michael mentioned, this was an opportunity to buy 44% of the Neves mine in the best silver district in the world. Two of the other bubbles on the top graph on the left, Saucito and Fresnillo are neighbors in the same district current operations by Neal. And the facilities really are first class. And Fresnillo has got very good at building this facility. This is a multiple version of the same thing they've built -- but this time around, very state-of-the-art good stuff. This circuit that is very conventional [indiscernible] mill, underground crusher. A lot of what we were talking about from the La Colorada skarn on a smaller scale, selective flotation -- it's a very similar type of thing, more gold in this circuit in this deposit. And the 1 thing that would be different to the skarn is that this has a pyrite circuit and the pyrite concentrators sold off to a smelter. And then in terms of operating performance, anycertainly, we're seeing a bit of a bit of a trend of outperformance relative to guidance. And certainly, we're tracking very well relative to guidance this year after the first quarter from what we're seeing. And the the guidance that we have for all-in sustaining costs were way below that. We guided $225 million to $425 million, and we're at negative 3% in Q1. So tracking extremely well from that perspective because of the higher metal prices -- so in terms of -- just in terms of both production and As, we're in good shape there. And then some of the initiatives that we're trying to work with First Neil with and working with Frist Neil with on continued safety performance, as Scott detailed, we've got a specific set of safety initiatives that we have in the company, and we certainly have some good discussions with them, similarly minded company on safety, continuing with some of the cost reduction initiatives that we've been talking about -- the development is very important to get that and maintain it not just for the production now, but for the deepening of the mine as we go forward the conveyor belt. I'll talk about in a minute. And then as Chris mentioned, we need to keep on on the exploration, trying to find more -- find more resources and convert them into reserves. And this is a slide on the conveyor belt. It's mostly complete. It's 4.2 kilometers long. It's a $37.5 million project with estimated savings by not having to run small trucks up the ramp of $8.4 million a year. So it takes -- it will take ore from the underground crusher and run it up to the plant. So that's -- it's a little bit unique with that big curve in it. So it will be interesting to see when that's in operation. And that's essentially it. And I'll pass off to Jacobina.

Now I can tell you, in Brazil in Jacobina, it is always sunny. Sorry let's get start with Jacobina. By state, over in Brazil, 350 kilometers away from Salvador over on the coast, on the East -- we look at the regional story of Jacobina and it's a pelioplatia deposit. So imagine billion years ago, there were big streams and that was a big deposit over to the east, and that was eroding down and all these -- this goal was coming down through the streams and it was depositing. So then that all got over billions of years sunk cooked, tectonically overturned, et cetera, et cetera. And then all of a sudden, we have the Jacobina Sarada Corrigo formation, which houses all of our gold, and that's free gold. -- in these conglomerate packages, we call them reefs. And they stretch over 155 kilometers where we have 60,000 hectares stake -- and Jacobina mine sits here and so all the way up across this, we call the Jacobina region, and we are doing exploration there at the moment. We've got some projects going. We've done some drilling last year and we continue to try and advance some of those projects in that northern north of the Jacobina mine. And it's worth mentioning that the pink here is the basement rock and everything dipping to the east. So again, we're going to look at, though, the red are these conglomerate packages that house all the gold in the metric. So it's all free gold or essentially. Jacobina is slightly different from the other Palio pluses in the world. There's been a lot of hydrothermal and intrusive events. There's been a lot of remobilization of that gold, which does make it slightly more complex than others over in South Africa. But the green here is these intrusives, I just mentioned, made it more complex. And really, we're looking at 7 to 8 mining zones across a 10-kilometer stretch -- and all of this is connected underground. So we're going to show that in a minute. Here we have the concessions in yellow. We've got those -- the basement rock at the back. These are all of our different deposits different mining zones kind of eras over in the north, Joelle Sul in the south. Here, we have the modeled reefs, which are these conglomerates, which houses all the gold. We're going to give that -- as I mentioned, 10 kilometers, cadavers is really the higher grade zone that we have and has been mined successfully over the years. And when we look at over the years, I think it was in 1982, it started producing. I mean this whole region has been mined since the 17th century with Artisan miners, et cetera. And we've had 1.4 million meters of drilling on this over these 10 kilometers. And we continue to find and continue to expand the resources, which is quite incredible. So let's -- we are looking west here. And we're going to show you -- so yes, here's all the infrastructure, over 400 kilometers. It's all connected underground and we still retain a large resource base of nearly 8 million and proven and probable 3 million ounces of gold. And really, it's been success through the drill bit. And just going to freeze it here. And yes, literally, I mean, over from the '80s, you had Anglo American and you had the Williams and then Yamana took it over in 2006 and really they started to ramp up this drilling and started to expand the resource here. and the production, and it as the real game changer here in terms of what those guys did. And certainly, we are produce 10 -- nearly 190,000 ounces of gold, and we continue to constantly find additional mineralization within these conglomerates down dip, infill drilling. So MoraVento, we released in December 25. We were just drilling up and around filling in different areas of that resource. And certainly, came up with some very nice results, which is going to add in the midyear sort of grades of 5 meters at 3.75, including 1.9 at 8.2 million meters at 339 grams a tonne gold. So some really nice results. And this is all infill drilling above closer to surface, which is good because certainly, the mine deepens. And this is all open at depth these conglomerate packages just go down and down. So that's certainly something for the future and a future target. With these reefs, we do call them stacked because we do have multiple REITs. So that certainly gives us the advantage of doing that bulk mining to get the tonnes out which Steve is going to talk to more. Gabella, certainly in -- when we came in and started working with the operation, Joe Belair was just being drilled, and we brought that into a resource. And certainly, some of the results, again, the 3.68, at 4.95 grams gold. 7 meters at 3.42 grams gold. This is just the drilling from that infill drilling and converting info into measure and indicated resources and as mentioned, open down dip and in localized areas where these reefs are we've got access coming across to job Bellas, which will bring that into production in the coming years. And again, you got the basement rock over to the West, North is to the right and we continue to just infill and certainly between Gabelo north and south, we're in filling and bringing in more resources. So -- certainly -- and again, in December, we mentioned the Maricotta exploration discovery. There's been several years now. We've put in 800,000 ounces of new inferred resource in the midyear 2025. And -- that sits on the western limb or western portion of the conglomerates Canavera sits in front of it. And that as mentioned, that's the higher grade and the good -- and the positive that we've seen is that Marcos starting to give us that higher grade that could replace the kind of [ ARRIS ]. So we've stripped away kind of [ Aris ]. We're looking west -- and I'm just going to go through that cycle of the Marcotte and how it has come to having 800,000 ounces of gold in inferred resource and that constant infill drilling, which adds to the confidence of these deposits. So we've had around 60,000, 60,000 meters of drilling in total at the moment. We're going to take you back. This is -- we had around 10,000 meters between 75 and 2021 and some historic holes sitting over here to the north. And then '23 program came in 12,000, increasing the confidence and the 24, again, bringing in additional 4 meters at 4 grams gold over there. And it's just adding confidence to these conglomerate packages, which then increases the the classification. And then December 25, we came out with some more results, which we got 4 meters at 7 grams gold in that infill drill hole sitting there. And so Markota has been a success story. It's a new deposit that we found. And as we now look to the exploration for the next deposit, we will certainly be targeting the northern portion of Markota going into Lagatixa, which we're going to show you now. Here's just an example of one of those cross-sections, the drilling, the read of these conglomerates and how we start to infill and bring up confidence of the content of gold sitting there. That's the program for 2026, projection still open at depth. And really, it's this northern portion where Legartixa sits. And we've released results in -- again, in December '25. which shows at least a couple of kilometers further north on the western side. We also have the Canaverus extension North, which is on the eastern side of these conglomerates. And there's some artisanal miners mining over here even further north. So that gives us certainly some confidence that gold sits within these conglomerate packages. Some of the results that we released, as I mentioned, in December and really Jacobina is, as we've mentioned, a fantastic deposit and built for success.

Good afternoon, everyone. My name is Steve Busby. As Michael indicated, I'm part of that elite group that was here for 23 years. 17 of my years, I was Chief Operating Officer with the company. And I had the fortune to turn over the Chief Operating Officer to Scott Campbell, as he mentioned earlier in October of last year. And Scott has done a marvelous job of structuring this company for the next generation. This company is going to be around for quite a long time. You see a lot of young faces here, a lot of highly talented people, and it's really a pleasure to be part of this group and be part of the successes that we've seen. I've been very privileged. I've been given a new assignment as a special adviser to the company. And that allows me to do the things I love, the things I really love about this industry, working on new projects, working with accomplished teams at many of our sites and looking at the future, strategizing how we're going to take these assets to the next generation. As Sam and Ignacio mentioned, when we acquired Yamana, really Jacobina was the attraction to that acquisition. This is a long-term multigenerational asset with lots of upside. And as you saw, Yamana did a marvelous job, successful job of expanding production there. When we got our feet on the ground at Jacobina, we really started to sense there's even more value at Jacobina to look at this in terms of an optimization. How do we optimize the mining, the processing, the infrastructure, the community relations, the government relations, how do we optimize all aspects of this operation and capture the most value we can. So we wanted to kind of step back, cool our jets, if you will, on expansion for today, look at how we can secure longer mine life at this operation, really bring in efficiencies to this operation and then also later down the road, start to bring additional expansions into this operation. That's what we call the Jacobina optimization study. And we launched into that study soon after acquisition. We've been working very hard at looking at all aspects of this operation. And certain projects start to fall out as we do that. And that's what we suspect is going to happen over the next 5 to 10 years as you're going to see a number of projects fall out of this optimization. And the first one is going to be a filter plant and a tailings stack facility. We do see a limitation to conventional tailings handling at the site. We're probably by the mid-2030s, we're going to be out of conventional tailings capacity. And given the topographic constraints, the land constraints, dealing with the communities in and around the operation, we really see an opportunity to bring tailings filtration, which we're quite familiar with into this operation, go to a stacking facility, which opens up a vast life, if you will, for future tailings. Secondly, supplemental to that and complementary to the filter plant is going to a paste backfill underground. We're seeing limitations with open stope mining without backfill, which is the way historically it's been mined at Jacobina from day 1. And we really want to stabilize the mining. We really want to go -- you saw Chris showed opportunities at depth in order to access that depth, we really need to secure the stope areas we're mining and paste backfill will bring that to us. Paste backfill also, if you notice, there's a significant amount of gold ounces contained in measured and indicated resources that didn't make reserves. And a lot of that is coupled with this open stope mining method. Using paste backfill for the same primary developments we do for our current mining, we'll be able to access much more resource mining, much more reserve and production coming from the same development. So it brings a lot of efficiencies. It's complementary to the filter plant. That's kind of the second project. These projects are moving from conceptual engineering through basic engineering at the completion of basic engineering late this year, we'll come out with the details of those projects, what's the capital, what's the return rate on those projects, and we'll launch into those projects. Over and above all that, we see tremendous opportunities in the process plant. This plant was built 50 years ago, and it's been expanded tremendously through the years. And through those expansions, there's a number of obsolete equipment sitting in and around the current plant footprint. And we want to kind of find a way to modernize, streamline the circuitry. We see significant opportunities. When you look at today's technology for processing gold-rich ores like Jacobina, free milling ores, if you will. We see tremendous opportunities to go into that plant, make some significant investments in modernizing and removing a lot of the obsolete equipment that's currently in the way of the operation there. That will drive some cost efficiencies that will offset the cost of filtering and paste backfill. And it will also bring us higher gold recoveries in the long term. We see the ability to get above 96% gold recovery. by improving those efficiencies. After we get all that done, now we can really start to talk about expansion in an opportunistic way where we're capturing optimally all the value that we can from this very, very interesting large resource that we have here. Sorry, I missed the slide. Yes. So during 2026, we're committed to -- we're estimating expenditure for this growth projects, for these optimization projects between $53 million to $57 million. This is over and above the sustaining capital estimate that we put out for the operation of $67 million to $70 million. And we divide up what we're doing in '26 into both studies. We've got about $10 million of studies that we're doing this year, which is that plant optimization, kind of conceptual engineering and layout work. We're working on how can we sequence construction to upgrade and modernize that plant. The filtration plant and the paste plant, as I mentioned, we moved through conceptual engineering. We're deep into basic engineering, and we're just finalizing those projects. We have some power increases that we foresee in the future. The power supply has been a little bit weak from our perspective. We do get power bumps, particularly during the rainy system -- rainy season that disrupts our operations. So we've been working with the power supply companies to upgrade our power sources and give us much more stable, reliable power into the future. So about $10 million on studies. All the while, we're spending about $57 million to $60 million on projects this year, some of which is upgrading some of the work that Yamana had started in the leaching and carbon and pulp circuits, we need to get those stabilized in the near term, and we're spending some money in there. The exploration that Chris showed us, we're seeing fabulous results on exploration. We keep pushing that. We have increased development rates. We do have a permit today that will take us up to 10,000 tonnes per day production capacity. We're currently running about 8,500 tonnes a day. So we see an opportunity once we get the filtration plant running, the paste plant running, some of these optimization projects completed, we can take that up to the permitted level of 10,000 tonnes a day and continue those studies that then will lead to a permitting effort to look at future expansions beyond that in the next decade or 2. So really, the overall study of optimization of Jacobina is an ongoing effort to capture all the value we can of this operation. First and foremost, looking at extending its life. This thing is going to be around for multi-generations, and we want to be sure it's capable of doing that in a clean and responsible way. We want to improve the efficiencies of the operations and really look to offset the cost increases we're going to apply with the filter plant and the paste fill plant, capture more of the reserve production reserve recovery and increase the ultimate recovery that we expect to get through the plant and then ultimately bring the expansion to this great operation that we have at Jacobina. And I think that's it for Jacobina, and I think we got a bit of a question-and-answer session at this stage.

I just had 2 quick questions. One, just going back to the CapEx at Timmins, was the $146 million for the shaft plus the 2-kilometer plus of decline development?

That's correct. Yes. The $146 million includes the $131 million for the shaft plus the development to Samson and the development to Vogtle.

Okay. So that's like $15 million to develop to do like over 2 kilometers of underground development.

Yes. And it includes some drilling as well, right? Yes. It's not just development, it's drilling also.

Okay. And then just wondering on the exploration at Juanicipio, as you guys are kind of at that corner of the boundary line, like what's the -- like how much say do you guys have in terms of the discussions with Fresnillo on where the meters are drilled off and kind of what's the risk that at some point, they continue to drill further into their property and then the operations becomes kind of more like 100% attributable to them?

Well, I mean, I don't foresee them drilling and producing off the edges of this claim into the Juanicipio claim. The Juanicipio is a true joint venture. So what they do on the other side of the concessions is their business, we don't get involved. We get involved directly with what's inside the concession. So the exploration efforts that Chris mentioned is inside the concession. Whatever is discovered there and produced there is processed through the Juanicipio plant, which is a joint venture plant.

Okay. But how far is the current operation from like that boundary line?

Well, you mean the plant site itself or what -- I'm not sure I understand.

Mining on the underground.

Yes. I mean right now, we're mining up to the concession boundary. We're not mining beyond. There is a buffer. There is a small buffer.

So then if you cross the boundary line, doesn't that become 100% Fresz?

We don't cross the boundary line. We do not mine across the boundary line with the Juanicipio production plant. We stop at the boundary.

It is dipping south. It does dip back into the -- it's in the Juanicipio and it dips further into Juanicipio. It's not dipping the other way, which is...

But whatever continuation of mineralization that may occur beyond the concession, that's Fresnillo's business. That's not our business.

No, I understand. But what I'm saying is like Fresnillo's operator, at some point, if they kind of choose to do more development into that side.

They can't do it at the expense of Juanaceipio production plant. Any other questions? Yes.

Just a question on -- maybe with Juanaceio. You have been -- or the mine has been getting positive reconciliation for the last couple of years now in terms of grade. Is that just conservative modeling assumptions, top cuts that they've used? I mean what's going on there that continues? And is there more potential for this positive reconciliation to continue?

I mean, certainly, we see -- I mean, they've only just released the 2025 resource and reserve. So we're a year plus behind drilling and development, et cetera. The bonanza zone that they are in is exceptional, and we've certainly seen that positive reconciliation. Is there further upside? I mean we have to remember that we are going deeper and the silver grades do start to reduce as the polymetallic starts to increase. However, year-to-date, it's still positive reconciliation. So it's part of the cycle of getting that resource and reserve in as well as the current production and the development into those areas.

Just few additions to Wayne's question as well. First of all, this is not like Fresnillo against Panama or Panama against -- this is a joint venture, right? And Fresnillo owns 56%. So 2 things. This is the best operation that Fresnillo has when you look at in the whole district. It's obviously even more in their interest and in our interest to do this the best possible way as they get $0.56 of every dollar we make out there, we get $0.44. That's just a general statement. So there's a lot of effort, obviously, joint effort to go in further do even more, drill more, get more out of that operation. I forget, this is the newest of the mines they build there in the district as well. And then to the reconciliation, I mean, we see higher grade month after month, I think we still see it as of right now, I didn't look this month, but last month for sure, continue. But don't forget, and I said that many times, when you look like at La Colorada, you see exactly the same, right? Geologically, you go deeper down into more base metals. And hence, you explore for those parallel structures to keep kind of a mix of the higher grade silver from the top with the more base metal deeper down. But at the moment, for sure, it still looks like that we probably get more -- a bit more tonnes out of it and a bit more grade. I can see quite an aggressive top cut that probably caused that. But over time, when you look at the next 10 years or so and you go just follow one structure down, there's no -- you can't avoid that you're going to get into more base metals on that one. But every parallel structure that you explore and you start developing higher up will again start in gold and silver and then go into the base metal. So nothing different than what we see at La Colorado.

I mean on the tech report, I mean, you guys were supposed to be at 300 grams per tonne.

We're much higher.

Yes. Just kind of moving on to Jacobina. I mean, it looks like the 10,000 tonnes per day, it looks like that's pretty much in the bag.

It's in the bag. It's just a matter of timing. So we have to get these projects up and report it. We'll release those projects and the results of the project and when the timing of when we'll achieve that 10,000 tonnes per day, but it is in the bag, you're right.

And then, I mean, Yamana was looking at all the way going to, I think, 150.

Yes. We're not prepared to suggest that we can get to that level yet. I think that kind of potential exists, but it might be a decade down the road here.

And then just last question on Timmins then. In terms of Timmins, obviously, lots of exploration upside success going on there. At one point, I mean, we have just discussion, Michael, earlier that Timmins was almost a noncore asset at one point. So now it looks like it's going to complete 180. You're looking at production going all the way out to 2040 from what I understand. Yes. Is there upside not just in terms of extension of mine life, but also an increase in production profile? Or is it just a steady production profile all the way to 40?

We actually had a good discussion on that this morning. With Gold River, I have to say there is some opportunity to look at maybe expanding production rates. But it is a great result that we're seeing production beyond 2025. As Al mentioned, we -- when we bought this asset, we thought 2025 was it, and that's why we declared it noncore. That was our mistake. That was wrong. This is a core asset. This is a very long-life asset from what we're seeing. So that's kind of our first focus is extending life. But with Gold River, with some of these external Whitneys, there may be opportunity to expand production as well as those projects get better defined.

I have a quick question just on Jacobina. You as the special adviser to CEO, can you let us know how you split your time among the different operations, the fact you come up here today to talk about Jacobina. Can you let us know what are -- can we see Jacobina as one of the strongest growth assets for Pan American Silver? I'm sure there are other projects as well, but how should we look at the future?

Yes, great question. What's great about my position is I get to focus on what I love, which are these projects and strategizing these projects. I think I am spending a significant amount on Jacobina right now because it's -- I guess I would describe it as it's a fairly intensive project and trying to bring the team in Brazil together with ourselves in defining what the vision is of where we're going. We're trying to find alignment. They've been working so hard for so many years at expansion, expansion, expansion. And this concept of optimization is new to them. So trying to bring that team up to speed with what our vision is and adjusting our vision to what the reality that they deal with is, that's really where the focus is, and that's where I spend a lot of my time. But I also have the great fortune to work a lot with the Timmins teams, a lot with the La Cara skarn development teams. So yes, all the things that I love to do, which are projects, I get to spend my time on.

Charles from Jefferies. So just when I think about the Siemens assets, like it does seem like you guys are moving to like a regional processing. And I wonder if any thoughts have been given to like if Pan American want to do that regional consolidation? Or is there scope for it to be done by another operator just given the location of the assets?

Do you want to take that one on, Mike?

I mean it's obviously a great district. We've seen that, and it's a great Canadian district, which is very hard to find. And when you add all the satellites, when you add what else we do in Timmins and you saw a few other things that we're working on, it definitely starts to shape out like that everything together will build a great platform for us in Canada. I think we are not completely there yet technically to show you exactly how that production profile will look like because you saw there's still some drilling to be done. There's still some technical study, and we need still like another scoping study. But once we have it all together, I think it's going to look very interesting for us where this is going. I don't have the final answer to your question, obviously, because it's maybe 5, 6 months a bit too early. But I think your thoughts are going in the right direction for sure.

One more question.

Sorry, maybe just one follow-up on the Gold River. Do other operators in the region have refractory processing capabilities? And like what would that kind of look like for you guys?

Great question. Yes, the answer is we do believe there's an opportunity is whoever builds the first refractory circuit there is going to be able to access some additional resources in the camp that are refractory. So we see that as a potential opportunity for sure. Okay. With that, I'm going to turn it over to Brett Bergeron for the sustainability ESG. Thank you.

Thank you, Steve, and good afternoon, everyone. My name is Brent Berg, and I'm the Head of Corporate Affairs, Sustainability and Security for Pan American Silver. Don't be fooled by the color of my hair. We do have a lot of challenges on the sustainability side. I guess the pressure just hasn't reached me yet, but it's -- I know it's on its way. So anyway, I just wanted to talk a little bit about our approach to sustainability and just to mention that sustainability at Pan American really starts from the top, and it goes through the different levels to the executive team, to the people at the corporate level that supports the different countries where we operate and also integrating it into the country managers and the mine general managers to make sure that they are operating at the level that we're expecting from them and that we're actually committed to based on the commitments that we have with different organizations or associations across the world. We make sure to actually -- sorry, I need to mute my slide -- there we go. We make sure to actually discuss and talk quite a bit with our stakeholders, and we integrate that also with the surveys that we do internally with our senior management team, just to make sure that we are consistent in terms of what we're doing on the ground which is an important part of what we do to make sure that the contributions that are leading to our workers, the contributions that are going to our communities are always consistent with the expectations that are there. So we do have our policies and standards and our guidelines going forward. We do conduct quite a bit of risk assessments also in terms of making sure that we understand what's happening at our mine sites. And also, we try and integrate that in terms of all the work we do, whether it's the auditing part, whether it's the budgeting part, we try and put that in to make sure that we are responding to the right pressures and making sure that we are trying to overall alleviate the risk at our operations so that our operations can do what they do best in terms of safe production. Michael mentioned it at the beginning of his presentation in terms of our jurisdictions of where we operate and it's through the Americas. And sustainability doesn't only happen during the time that we're operating our mines. With the corporate development team, we work quite a bit in terms of really understanding the countries and the opportunities that we're going in and making sure that -- we look at the sustainability aspects of any type of new opportunity or new project before we actually take the decisions, not just on the financial and operational side, even though those are very important. In terms of remuneration for our executives, 30% of the remuneration is actually based on sustainability factors. So it's one way that we try and really make sure that we ensure that our team is focused on doing things right going forward. When we take a look at how we perform with our sites, we have now what we call our integrated sustainability audits. And the real reason for doing this was to -- we want to make sure that the sites are operating at the levels that we're asking, we're committing to. But we also want to do this in a way where we're not going to the site continuously every year to be able to bother the sites from the actual work that they need to be doing. So we stagger that over different amounts of gears with respect to different sites that we go to, but we try and integrate the different disciplines together to make sure that we do this once a year. We actually work with the sites in terms of their remediation plans, and then they move forward with their decisions in terms of how they want to handle it, which is part of the decentralized structure that we currently have. And also, as Scott mentioned, in terms of the safety audits, very important to us, and we also do that on a continuous basis. The different standards that we adhere to, of course, being a member of the Mining Association of Canada and having our assets here in Canada. We use the -- towards Sustainable Mining standard, which is extremely important in terms of our commitment to the mining association here. But we took a conscious decision about 5, 6 years ago to not just implement TSM at our Canadian operations, but do it throughout our portfolio. And that was a very important decision just to make sure that all of our our operations are operating at the same standard, but also to alleviate some of the pressures that we hear sometimes from different organizations say, well, you operate very well in Canada, but you not necessarily do the same in other countries. But here, we actually do. We perform the audits, internal and external audits on our operations, which is very important in terms of our disclosure that we do on a continuous basis. After the Yamana transaction, we continued as a member of the World Gold Council. Therefore, we are also implementing the responsible gold mining principle, which helps us in terms of the breadth of the standard. TSM is focused quite a bit on Canada. The responsible gold mining principle opens up in terms of some of the international standards that we also need to adhere to. Of course, the voluntary principles on human rights and security, especially in the Latin American countries where we operate. This can be very important in terms of training our people, training our suppliers, training our suppliers of security teams at site to make sure that they're reacting the proper way when some type of incident actually occurs. And finally, the conflict-free standard, which is also part of our membership at the World Gold Council. Very important for us in terms of our refiners who want to make sure that we really have a clear understanding of our entire supply chain and knowing our customers in the end so that they have more -- they're more comfortable in terms of knowing what we're actually shipping to them in terms of concentrate or also in terms of doré bars. In terms of the ratings that we're -- I know that some of you and some of our investors actually use some of these services sometimes. We monitor this on an ongoing basis. We feel that our scores are quite well placed right now in terms of the percentiles that we are in. We do interact with some of our investors, and they do have their own ESG analyst team. So we do it both ways. But I think that when I take a look at, for example, what we've done with S&P Global in terms of being ranked now in the top 5 percentile of the metals and mining industry, I think it's really indicative in terms of how we take sustainability and our operations very seriously, but also in terms of trying to be very high in terms of our scores with our peers. So this year, we actually were added to the North American index for best-in-class. So a very good achievement by all of our team and all of our sites that are implementing a lot of the standards that we're actually doing at this point. Some of the important aspects of what we're currently doing right now, mine closure and rehabilitation. Of course, we have 3 mine sites that are under closure operations at this point. Alamo Dorado in Mexico, which you see a picture of it here. Also the Dolores mine, we're still producing off the heap leaches at that mine, but it's in closure operations at this point in Chihuahua and also the Manantial Espejo mine in Argentina. that's the physical part of what we do in terms of complying with our permits, but there's also a social closure aspect, which is extremely important in terms of transitioning the mine from being an operation and all the workers there to being an operation that's going into closure activities. So we do quite a bit of work in terms of participating with the communities and defining some of the future priorities that they have and establish programs to be able to do the conversion once the mining operation stops. One good example of this in terms of what we do on the social side is our socioeconomic contributions, which reached in 2025, $2.8 million. Very important for us that we look at this in terms of community investments, in terms of the pillars that I've listed here, simply because we do consider a lot of these activities to be part of the social closure plan because we're investing in activities or businesses that are not necessarily directly related to the mine site, but we look at these projects in terms of how they will be surviving once the mine site goes into closure. So very important in terms of what we're doing and moving forward with these. As we all know, the price of gold, silver and other metals is very high. And in the jurisdictions where we operate, that can be a challenge sometimes. So we want to make sure that our security practices are up as high as we can in terms of making sure that when some type of violent event does happen in the communities or around our mine site that our #1 priority is to protect our people and protect the asset, but just to make sure that the overall reaction of our people is done the correct way. And I always find that the training that we do provide to our teams, to our providers, security providers in terms of the voluntary principles is really integral in terms of making sure that our teams really know how to react in certain situations. So we keep concentrating in those areas in terms of what we're doing with our security teams. And finally, as you probably know, we published our sustainability report last week on Wednesday. Congratulations to my team that is here today. It -- sorry, it will show you a lot of the highlights in terms of our performance, sustainability performance in 2025 and some of our goals going forward. We're happy to answer any questions. And it was only out last week, so I doubt that a lot of people have gone through it completely. But it is very comforting for us that when we do our one-on-ones with our investors, we feel that they do read our sustainability report. They do ask questions on very specific topics and also give us quite a bit of feedback in terms of how our investors are feeling towards how Pan American is actually handling sustainability across all of its portfolio. So with that, I'll pass it over to Ignacio to do the finance, and thank you very much.

Thank you, Brent. I'm Ignacio Couturier, Pan American Silver's Chief Financial Officer. This will be my 24th year at the company and my fourth year as Chief Financial Officer. So been in that small group with Michael, Steve and Martin seeing the company grow. So yes, I oversee the finance function. The main responsibilities are financial planning, financial reporting, capital allocation, some financial risk management, IT, yes, and supporting the capital allocation decisions that we do. Today, I'll look at the financial position of the company, what our performance has been in the last couple of years. as well as looking at our costs. I know there's lots of questions what's going on with our costs, what's been going on all over the world and then review some of the capital allocation topics that we've discussed with special focus on the new enhanced shareholder return framework that we announced earlier in May. So starting off with our financial position. So today, we have around $2.6 billion of available liquidity made up of $1.6 billion in cash and short-term investments plus $750 million of undrawn credit and $200 million that's sitting in the Juanicipio JV. So a very strong position for the company to be in. If you look at our debt, we always had a very conservative approach to debt management. The bulk of the debt on our balance sheet today is made up of the Yamana bonds. Those were issued by Yamana prior to our acquisition of Yamana. They were issued at very favorable interest rates. The $500 million tranche was issued at 2.6% coupon and the one that's due next year in 2027 was issued at 4.6%. So we're not in a rush to pay those back given everything else that is going on in the company and the current interest rates as well. In terms of our financial performance, I think this graph really tells a story. You can see both the realized price per ounce on gold and silver as well as our all-in sustaining costs. So you could see that we've had a very disciplined approach to our costs. We've maintained our costs throughout a lot of pressures that we've seen throughout the industry. On the silver side, it is worth mentioning a couple of items. Number one is that, that decrease that you see over the last couple of quarters is mostly driven by the byproduct from the gold. We reported all-in sustaining costs on a byproduct basis. And offsetting that is quite a bit of variable costs going in the opposite direction. With the higher prices, we are seeing higher royalty payments at La Colorada, at San Vicente, some workers' participation in Peru as well, specifically in Lauren. So yes, there's pressures going on in different directions. But overall, the byproduct credits have been offsetting and it's been decreasing. Our guidance for this year is around, I think, $15.75 to $18.25, and we're coming in lower, but that's mostly based -- that's mostly driven by the high gold prices. Moving on to direct operating costs. This is a breakdown of our Q1 cost around $381 million. You can see the bulk of it is salaries, which is around 30% contractors, which includes labor portion also an equipment usage and consumables, that's 25% then direct consumables and reagents, 20% maintenance and parts, 10% and fuel at 5%. So we're getting a lot of questions what's going on with our fuel prices given everything that's going on in the world. So luckily, none of the countries where we operate, are we seeing any interruptions to our fuel supply. However, we are seeing increased fuel costs. In general, we're seeing -- between 30% and 50% higher fuel costs, mostly driven by diesel. The biggest consumers of diesel in our portfolio of assets are Shahuindo, which is open pit as well as Cerro Moro, where our electricity is generated by diesel as well. Now I'd say that apart from the direct fuel exposure, we are seeing increasing costs with some transport costs as well as explosives. We are expecting further inflationary pressures coming. As we've seen in other inflationary cycles, LatAm can be slow. The good news is that a lot of our supplies are sourced locally. We don't import that many supplies. But given if these fuel prices remain high, we are expecting fuel -- general inflationary pressures later in the year. Moving on to risk management. This is mostly on the financial side. So first of all, I'd say that we do not hedge either gold or silver, which are our primary products. We do hedge some of our financial inputs, including foreign exchange and base metals. You can see there on the right-hand side, there's a sensitivity, plus or minus 10% swings on the FX, with how that affects our operating costs. as well as base metals, how that affects our consolidated revenues. We do have an active hedging program where we try to manage these risks, reduce the volatility. At the end of the day, the goal of those programs is to make sure that we make budget and some of the assumptions we make for our cut-offs are being met. So you can see the track record we've had in terms of gain and losses from those -- from that risk management programs we've had over the last few years. So as I mentioned, we've had an outstanding track record of financial performance over the last 8 or 9 quarters, $1.3 billion of revenue over the last 2 quarters, plus or minus $500 million of attributable free cash flow over the last couple of quarters, adjusted earnings of over $1 per share for the last 2 quarters and return on investment of around 30% for the last 2 quarters as well. So outstanding results. So in terms of capital allocation, Michael mentioned this in the beginning of the presentation. I would say when we think about capital allocation, we think of 3 big buckets. One is financial strength. I mentioned the balance sheet, our strong financial position. Ideally, we want to maintain that to give flexibility to Sam and Guido when we're looking at potential targets to know that we can react quickly. So that's having a strong cash balance, have availability of credit when we need it, maintaining sustainable levels of debt on our balance sheet. Then next thing is making sure that we have the ability to fund all of our growth projects. As Steve and Scott have mentioned, we have lots this year with the Timmins shaft extension. all the projects in Jacobina with the optimization and of course, getting started with the skarn. -- around $265 million of the full $1.9 billion project has now been approved by our Board. That's the early works for the decline. This year, we plan to spend around $90 million on that or $93 million in total for the skarn projects. So once those are taken care of, then we can talk and think about how we return value to our shareholders. So in early May, we announced a plan to return between a target of 35% to 40% of our attributable free cash flow back to our shareholders in the form of dividends and share buybacks. As Michael mentioned, the dividend is around $300 million and the balance will be share buybacks. From a financial perspective, I think it's a good balance between the 2. As Michael mentioned, increasing shareholder returns through buybacks has an anti-dilutive effect. So for the remaining shareholders, they hold more and more value in the company. When I mentioned that 35% to 40% of return to shareholders that we have targeted this year, that's very much in line with what we've done historically. When we look at the last 16 years, we returned $1.3 billion of value to shareholders and that represents around 34% of our free cash flow generated, 34% for dividends and 8% for shareholder buybacks or share buybacks. So very much what we've announced this year is in line with what we've been doing historically. It's just that we have a very recent increase in our free cash flow, and we decided to formalize that in this enhanced shareholder return framework. On the right-hand side, you can see our plans for capital. So I just -- this is on the project side, so around $240 million to $250 million consolidated project capital. That's on top of $320 million to $340 million of sustaining capital planned for this year. So we have ample capital to fund all these projects to maintain a very strong balance sheet and then still target up to $1 billion of returns to shareholders. In terms of leverage, this is a graph of the last 6 or 7 years of our debt levels. So the line there is the gross leverage ratio, that's our debt-to-EBITDA. As an investment-grade issuer, we have the target of maintaining less than 1x debt to EBITDA. We saw those numbers go up after acquisitions, specifically the Tahoe acquisition, the Yamana acquisition, where there was a large cash component of those acquisitions that was funded through debt. We're very disciplined in repaying the debt as soon as we could. As you can see, now we're in around 0.5. So this gives us ample room to extend to get -- to extend our debt if we needed to. Moving on to the skarn. In Martin's presentation, you saw the capital requirements around $1.9 billion. Here is the spread year-to-year with around $93 million in the current year. Given today's financial position of the company plus its cash flow generation, we don't foresee looking for external funds to fund this. We think that we can fund this completely internally. So it's a great position to be in to advance one of the most important projects the company has just with internal resources. And this is my last slide. This just highlights the track record the company has had in terms of financial management, return to shareholders. We actually to make this graph kind of proportion, we had to cut off the $1 billion. So as I mentioned, $1.3 billion over the last 16 years of return to shareholders. And this year, we're targeting $1 billion. So an enviable position to be, and I think this is a great value proposition for the company. And in general, I'd say the goal of the financial management of this company over the years has been to support its growth as well as returning the maximum amount of shareholder value. So with that, I'll pass it along to Michael for closing remarks.

Well, great. A lot of information. And I know, obviously, it's recorded, so you can revisit. I think there are copies of the presentation outside as well if you would like to take one home. But just quickly, and we had that slide before. But for me, these are actually -- if somebody would ask me how you build a successful mining company in the world, there's a lot to do -- a lot to do that, but those are like the building blocks that you need, right? You need long reserves, you need a very solid management team. You've seen here, there's a lot of that. Obviously, this is only a small group worldwide between employees and contractors. We have about 17,000 people running these operations for us, and there's a lot of experience, a lot of experience, obviously, on the technical side. Mining is a very technical job, and you really need to understand how that works, not only to run it, but to build it and to find new one and replace it and do it again and again and again because at the end, we're dealing with depleting resources, and we have to find new resources all the time. And that brownfield exploration is absolutely crucial for us. We will never save money on that. We always spend and we always did in the hardest times, we always spend our money on exploration because when you do that, you obviously start running down your reserve base or resource base, which is kind of the beginning of an end for a mining company, of course, because that's all really we have to work to work with. But you want to have those besides your strong operations that generate the cash flow, and you saw it with Ignacio slide, the strong position we are in, we also need those projects, those catalysts going forward that really make a difference for the company in the future. I think you have seen a few of them. There's a few more. They're not all completely ready yet to share. And please stay connected with us during the rest of the year and early into next year because there will be a lot of news flow, as you can imagine. There will be reserve update, exploration updates. There will be more results coming from Timmins, more results coming from Jacobina. Of course, La Colorada will update you how that goes not only with the exploration, but also with actually the building of the ramp and additional projects of La Colorada that are going to get approved by the Board this year and next year to move that project forward. So there's obviously a lot of news flows coming in all those projects. And pretty soon, you will have, I think, really the full picture, especially I can't wait from the Timmins side to have the full picture and see and share with you how that looks like and how that district looks like for the next, what it's now 20 years or more at Timmins, a district that we kind of thought when we purchased will close down in short order. Of course, metal prices help. metal prices help for every mining company or should, but you saw the strong discipline to keep our cost low is absolutely crucial for that. So keeping those big margins and harvesting those margins and use that those results, that cash to advance our project that we have and be able to finance our largest build ever at La Colorada, obviously crucial for us and will yield very good returns for our shareholders. I think with that, we can have another round of questions if there are still questions.

Michael Lawson Winder from Bank of America. It's been super helpful. Thank you to your team for all your presentation. Very much appreciated. I wanted to ask you, and please, if your team would like to weigh in, your thoughts on capital return and not to diminish by any way the $1 billion you plan to return to shareholders in 2026. But acknowledging there's a lot of different drivers of the free cash flow that's available for capital return, but also recognizing that historically, there were periods where you returned far above the 42% historical average. How should investors in the investment community think about potential upside in capital return from what you've now set today?

Look, it's a great question. And I think if everything continues like that, I think our cash position under the current metal prices will still continue to grow even though we -- that $1 billion is really returned in 3 quarters mostly and not in 4 quarters because I think we only did about a $25 million share buyback in Q1. Don't forget, it only got approved when we announced the Q1 results, so in Q2. So there's quite an accelerated program here for share buyback that we are very active in right now and dividend payments for the rest of the year. But when you look forward and Lawson, if obviously, metal prices stay in similar levels, absolutely, I think there's more room. I mean this is a single situation that not only us, but the mining industry has to actually substantially reduce their share count. But for the first time in my career, there has been share buybacks all the time historically by companies, but they were tiny, very small, included by Panm. At the same time, every mining company in the world used their use their shares, use their currency to purchase new projects, which obviously only goes into one direction when you deal with depleting assets. So having the chance now to actually significantly reduce that share count, hopefully, over the next few years is a single opportunity for us and a large part of the mining industry. And they absolutely want to use that opportunity to not only do it this year, but to continue doing that, hopefully over many years. And as I said, reduce the share count that Pan has out there, while we can still finance internally the biggest projects we ever endeavor to build.

And if I could ask a follow-up. Your team spent quite a bit of time focusing on the 4 key growth projects you have within the portfolio, Juanacicipio, Jacobina, Timmins and La Colorada Skarn. Nevertheless, your introductory slide and your closing slide highlights the optionality from Navidad and Escobal that we haven't spent a lot of time on those and completely understand that the Escobal process is out of your control and then in a way, the Navidad process is as well. But is there anything you're seeing right now that would -- that you might point to that would give you incremental confidence that those assets could come into the portfolio on a relatively near-term basis?

Yes. And obviously, the team didn't spend a lot of time on it because right now, there's no capital project for those projects or mines, although those would obviously make besides La Colorada, the biggest impact to the company. And look, in Guatemala, definitely, there's no capital or hardly any capital needed to move that forward. And I spend a lot of time on that. I spent a lot of time in Guatemala right now and having discussions to see how we can finalize that consultation and move forward with the mine. It's a great mine. It's another 20 million ounces a year sitting there at today's metal prices. The costs that we show are all other costs from 2017, '18, I think it was about $8. For sure, costs will be higher right now. I don't know exactly where. But even if they will be 50% higher when you fast forward to production, huge return, obviously, on a project like that or in a mine like that. And of course, there's a lot of time that goes in there. I just don't have any timing to share with you when that production will be back. Similar situation, Navidad, probably a bit longer out and obviously, capital required because the mine isn't built. But there's really a law change needed first in the province of Chubut that actually would allow open pit mining before we can go into a permitting phase. We all hear about the great things, and we feel it as well at Cerro Moro, the great things that Mr. Mile is doing in Argentina and the positive changes and big projects that are coming to Argentina over the next, I would say, 10 or 20 years. And obviously, it would be great to add Navidad there. But obviously, a political change that we need to to wait for that approval of -- or change of that open pit law in Chubu before we can advance. Navidad is ready to go in that sense. I mean we have the feasibility really in the draw. All the work, technical work is done there. It will be a longer process, as I said, because it needs to go to permitting and then construction. So longer than, obviously, when you look at Guatemala.

Yes. Just one last question for me. So how do you think about noncore, how do you qualify noncore assets at this time? And should we think about any potential rationalization down the line?

Yes. Look, I mean, I'll be always very careful just to name one asset and say it's noncore. -- first of all, we just showed 2, 3 cases here that changed completely around, and I don't want to have a demotivated workforce thinking that they're not important to us. They all do great work. And even if a smaller mine like in Bolivia has created and generated really, really valuable cash flow for us and production in the past. And in many cases, give us maybe a stepping board to something bigger, right? We have investments in Bolivia and other companies, for example. So I don't want to just call one asset out there and say that's -- we want to sell that or it's noncore because lots of things can happen until it's there. But of course, the longer picture that you saw that Sam showed to go for longer life, bigger assets over time and then sell off or find a solution for the smaller one will be always the goal here to build this even bigger and stronger Pan American silver. But I will be very careful just to call one out because I don't think it's the right way to think about it. I think it depends. It's not only the asset. It's obviously a political situation. It's how much other -- how many other projects we have, maybe we have great exploration success in the same country somewhere else. As I said, we can use the workforce and the knowledge to advance a project like an additional exploration discovery. So lots of other issues we need to think about before we would like make that call, sell something of. What we sold so far were all nonproducing assets, except La Arena in Peru, which we mined out the gold side and it went into a copper porphyry, and that was not our business. But everything else we sold was nonproducing so far. Okay. Well, thank you very much for coming. Thanks, everybody, on the call. There has been a lot of information, as I said. You can listen to the recording. I think there's some refreshments out there. Maybe we can continue and have a few Q&A sessions out there as well. And please feel free to ask all the team here about what they think, what they know and what they have to tell about this great company. I'm pretty sure you share with me or you understand why I'm so happy where the company is right now. a very motivated team here, not only good projects, but you need a motivated team actually to get there and to push those projects forward. There are a lot of work, not only capital, but a lot of work. But the company is in a very, very exciting position right now, for sure, the most exciting place we've ever seen it, Steve, in our time and really looking forward to look at the next stage of growth that Pan American is going to go into. So thank you very much for coming.