DSVSF - Discovery Mining Ltd.
Price:
--
--
|
CONSENSUS:
Buy
DETAILS
← Back to Transcripts
Q2 2026 Earnings Call
2026-08-13Operator: Good morning. My name is Alexandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Mining Second Quarter 2026 Conference Call and webcast. [Operator Instructions] I will now turn the call over to Mark Utting, Senior Vice President of Investor Relations for Discovery. Mr. Utting, you may now begin your conference.
Mark Utting: Good morning, everybody. Thank you very much for joining us on Discovery's Second Quarter 2026 Conference Call and Webcast. As you just heard, I'm Mark Utting, Senior Vice President, Investor Relations. Joining me today are many members of Discovery's senior executive team. Speaking today will be Tony Makuch, our President, CEO and Chairman; Alison White, our Chief Financial Officer; Duncan King, our Senior Vice President, Canadian Operations; Gord Leavoy, our Senior Vice President, Mineral Processing; Harold Bird, our Vice President, Mineral Processing; Eric Kallio, our Senior Vice President of Exploration; Jose Jabalera, our Senior Vice President in Mexico. We'll then turn it back over to Tony for concluding remarks. Just before we get started, as always, I'll remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. And for more information, please refer to Slide 2 on our slide deck as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP and therefore, may not be comparable to other issuers. Slide 3 in the deck deals with cautionary language around non-GAAP measures. Lastly for me, all dollar amounts today will be expressed in U.S. dollars unless otherwise indicated. With that, I'll now turn the call over to Tony Makuch.
Anthony Makuch: Thanks, Mark, and good morning, everyone. It's really good to be able to be here. Actually, I think maybe before we start, we had a really -- I think we had some pretty good results in the quarter. Things went well or are progressing well. I know that like there's a lot of stuff hiding in the background that maybe people don't see and we don't talk about a lot of people did a lot of good work, a lot of people that did a lot of good work. Some of the results aren't really shown in this quarter. You'll be seeing them in future quarters. But what we talk about and all the benefits that we see and all the results we see, it's really -- we get the chance to talk about it and tell you about it, but there's a lot of really good people working in the company throughout the operations, and they're the ones who did all the good work. So before we start, thank them for the results and we recognize really what everybody is doing. And so stay tuned. We're going to talk about good things that happen here, but stay tuned. There's still a lot to story. Anyway, I'll start with Slide 4. This is a slide that we used a lot in the past to try to show things in terms of where we are in value creation and about our growth to over 0.5 million ounces of gold in production over the next 3 to 5 years. It looks at the potential for Cordero and what we think we can bring to Cordero 14 million ounce silver production rate, but on an equivalent silver equivalent basis, depending on silver prices, the significant zinc and lead production there and definitely a world-class silver project in Mexico, just waiting for a permit. And then looking at our gold business and what we're doing, we now believe that growth has the potential to be significantly greater than what we show here. And that's a forward-looking statement that Mark talked about earlier. And during this presentation, we will show you why we are confident that this can be achieved. Moving to Slide 5, second quarter was favorable, and we did have a lot of good works. And definitely, we've done a lot of progress in advancing our growth plans. And maybe there were three key developments during the quarter that really highlight when we first, we completed the acquisition of Kidd operations. Second, we continue to achieve outstanding exploration results. And we -- on the exploration results, like we originally were putting on one press release. Now we put out three press releases in the last 3 weeks. instead of lumping them into one, there's so much good information on all, we realize we probably have to start presenting them each individually. And you can see there's excellent drill results at all of our exploration targets, and we expect that to continue. We really think that this is as much -- as much as this is a production and business story and a going concern operation that's financially viable and as much as this is a growth story, this is -- this could be an exploration story as well on steroids. And so we had a lot of good exploration results, and we did ramp up our investments in the quarter. And we've had definitely -- we're focusing on trying to improve our operations. But going to Slide 6, this looks at the Kidd acquisition. And I think in our last call, we did talk a lot about it. But summing it up, the growth we talked about, this is really a big enabler besides the exploration, besides the people and what we're doing in the Porcupine camp, besides all the good geology, et cetera, that we see here and the infrastructure in place, the acquisition of the Kidd operations really helps us to achieve the growth that we're targeting over the time frame that we plan to achieve it. And a big part of it is the Kidd Metallurgical Site and what we can do there. And we'll probably be talking more and more in future as the year progresses in terms of the benefits of that. We're not going to get into too much of the details of that, but that was a significant acquisition that really enables us to move forward. And maybe when we talk about it, there's a current processing capacity there. But for us to grow our operation, optimize Hoyle Pond and [ Pamour ] without this infrastructure and the geography, the land position, the power, the water that comes with get operation; maybe I can talk to that, maybe I shouldn't. And this is a very important acquisition for Discovery. Slide 7 shows what we know from the last quarterly call and sort of gives a sort of concept that lays out our plan for construction of the new conventional gold circuit incorporated into space that was the A division. You can see that some of the conceptual diagrams of where the infrastructure will go. We are currently reviewing what this circuit will look like and are advancing engineering and design work. And I can tell you that we have moving parts, the exploration success and sort of are productivity rates that we might design for. There's still a lot being added to the story. So we got a lot of blank pages. We might have a lot of headings and chapters written in the book, but all the content is being rewritten as we speak in terms of what we're doing there. The B circuit, that's at Kidd. There is 4 circuits, as we've talked about before. The B circuit will continue to be used as a base metal circuit and now processing the Kidd Creek material at least for 2026 and all of 2027. For the C circuit, we are doing test work now, and we expect that this circuit will be used to process Borden [ North ] starting sometime next year. And we see this could add some something up to 40,000 ounces in annual production just in our current form. And where do we get that from? Well, it will add 2,000 tonnes a day of added availability at Dome. We can see improved metallurgical recoveries at all -- at the ores processed at the Dome mill currently, plus we think we're going to get that improvement in recoveries from Borden, right? And it also gives us the ability to process higher levels of Borden ore at Kidd. So maybe it gives us the ability to increase productivity from Borden because we were limited to how much Borden ore could be intermingled into the gold circuit at Dome. And with the Kidd Met Site, we also investigated future plans for the D circuit. Our goal would be to have the TVZ and/or other materials processed here. And so we still have a lot to work there, but really an enabler in a lot of ways. Slide 8 looks at the exploration. I mentioned we had three press releases over the last 3 weeks, all with excellent results. Eric is going to talk about this later. So I'll just focus on a couple of things and maybe highlights. We're excited about Pamour, based on recent drilling. And tied into past drilling, we've established that the mineralizing system over -- we've identified over strike length of more than 4 kilometers. The system remains open in all directions and at depth. And we've talked previously about the depth potential in this region of the camp in terms of depth of Hoyle Pond, where it's down to 2,000 meters, I should say, and the depth that was at the [ Pamour ] project, which is on -- strike on the same system. It's not a mine that we have, but was mined down to 5,000 feet. So there's a lot of significant upside here. We're currently working on a mine redesign for the Pamour pit, and we expect Pamour to become a much larger producer and with that, as I talked about earlier in terms of the processing capacity and what we might build at Kidd A circuit to support a much larger open pit operation here. And the other point that I'll make is that Dome is the second large open-pit operation. We expect to be able to bring online. It has transformational growth potential. And by -- what we do at Kidd with the Kidd A circuit and being able to move Pamour there, this enables the Dome mill in its current form to be used to process and to start the Dome open pit. This is again, this is all future-looking stuff. We do also have longer term, the [indiscernible] as a potential third large-scale open pit. But again, that's -- maybe we just start with the Pamour and then see how Pamour goes to Dome. But we truly believe that the Discovery operates 3 of Canada's largest open-pit gold mines all located in the Timmins County. Going to Slide 9, it looks at our Q2 capital expenditures. As expected, our CapEx went up in Q2, totaling $86 million. That reflects our progress on a number of fronts at tailings, we're advancing our tailings project at Dome to build up our tailings capacity. We continue to do pre-stripping at Pamour. Our goal is to bring Pamour to commercial production. And we're investing in new fleets of equipment and infrastructure at both Hoyle Pond and Borden. And we expect to see further progress and further investments in CapEx over the year, et cetera. And that's been our goal here to invest back into these operations to build to not only build production, but also to improve the operating performance. So not just growing production, but improving performance and reducing costs. Unit cost, maybe I should highlight that better. In terms of Slide 10, it highlights our Q2 operating performance. Again, on this, I will leave the financial results for Alison to review, but I'll say that virtually every financial metric improved substantially from last year's second quarter. We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both prior periods. And speaking of record results, we achieved record gold production in Q2. Production increased over 10% from the previous quarter. Duncan and Gord will get into the details, but the increase was largely due to higher throughput. And a key highlight for the quarter was that both mining and milling rates showed strong growth at every operation. Finally for me in this part before I pass it on to Alison, Slide 11 shows our 2026 guidance. And again, I will tell you that we are tracking well to achieve all of our guidance for the year. And with that, I'll turn the call over to Alison White, our CFO.
Alison White: Thanks, Tony, and good morning, everyone. Overall, it was another solid quarter, reflecting the continued momentum that we built in Q1 and certainly that we've continued to build over the past year of operations. We had robust revenues during Q2 of $319 million, an increase of 12% quarter-over-quarter, primarily reflecting higher ounces sold and the impact of the Kidd operations from the closing on June 1, which did contribute $30 million to revenues during Q2. Revenue has increased steadily since the same quarter of the prior year, our fourth consecutive quarter of growth, driven by the operational team efforts to lift production and by higher gold prices over the same period of time. We've moved more tonnes during the quarter compared to the prior quarter at a lower cost per tonne, coupled with higher number of ounces sold during the period and partially offset by a planned reduction in grade. As a result, cash cost per ounce were $1,387 per ounce sold. As we've said before, we expect unit cost to be the highest in the first half of the year and improve during the second half of 2026 as production and sales volumes build. All-in sustaining costs averaged $2,154 per ounce sold, reflecting expected higher sustaining capital expenditures, partially offset by the lower cash costs. The ramp-up of sustaining capital reflected capital development and infrastructure improvements at Hoyle Pond and Borden, additional deliveries of new mobile equipment and construction work at the tailings TMA6 project. EBITDA of $170 million was similar to the prior quarter as the contribution from the Kidd operations offset the decrease in the average realized gold price. That said, and similar to my comments on revenue, we've carried strong EBITDA momentum from last year. Free cash outflow of $11 million reflected the ramp-up of our capital expenditures program and the impact of $56 million in working capital changes, reflecting accelerated payments of accounts payable prior to a new system implementation that occurred at the end of the quarter. Funding of the Kidd operations that were offset by the first month's impact, where no cash was received for Kidd revenues in June due to the timing of the receipts for -- in the month following for sales according to the new offtake agreements. Discovery deployed $86 million in capital expenditures to further advance the asset base at Porcupine, consistent with our capital allocation plan and toward our vision of reinvesting in the business to build value over the long term. Operating and free cash flow reflect the reinvestment in the business through the company's capital expenditure programs and the impact of working capital described earlier. Let's move on to the next slide to review net income and adjusted net income. On an adjusted basis, earnings were $92.3 million or $0.11 per share compared to $82.7 million or $0.10 per share in the prior quarter and $28.4 million or $0.04 per share during Q2 2025. The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a onetime deferred tax expense resulting from a change in the discount rate methodology from the acquisition date fair value for the Kidd acquisition subsequent to remeasurement, which had a $0.02 impact. TSA and other onetime costs had a $0.01 impact. The purchase price allocation adjustments related to the Kidd acquisition for the fair value also had a $0.01 impact and finally, another $0.01 for the payments to First Nations in relation to the closing of the Kidd acquisition and reclamation expenses for nonoperating sites. To summarize, adjusted earnings were up quarter-over-quarter and nearly 3x from only 1 year ago when the company initiated operations through the acquisition of Porcupine. Let's turn to the next slide to review our capital priorities. First, we are actively investing to drive future growth. Our capital spend program is robust during the current year with $195 million to $235 million planned for growth capital at Porcupine, including an additional $25 million to $35 million for capitalized exploration and $120 million to $165 million planned for sustaining capital. The capital spend program includes replacing equipment, expanding mill capacity and working to enhance future production levels through exploration and conversion drilling across the business that continues at a rapid pace. Second, we are strengthening our balance sheet. Despite the period of reinvestment that I just spoke about, we had over $600 million in liquidity at the end of the quarter, with $364 million in cash and since the close of the quarter during July, have upsized the company's revolving credit facility to $400 million, bringing total current liquidity to over $750 million. As we look to continue to expand and grow, our financial strength will be fundamental to our success. We continue to build on the momentum that began last year across all of our key financial metrics. Revenue and EBITDA have remained robust each of the last 4 quarters and equally through strong earnings generation. Let's take a look at our liquidity position on the next slide. Discovery's cash balance totaled $364 million at the end of the quarter. The gold price environment translated into $130 million of operating cash flow, partially offset by the working capital adjustments and continued capital investments that were covered earlier. This leaves us with a strong balance sheet and the financial flexibility to fund our capital programs and advance our strategic priorities that underpin our vision with confidence. And I'm now going to pass it over to Duncan King, our Senior Vice President of Canadian Operations.
Duncan King: Thank you. I'll discuss our production numbers and then ask Gord Leavoy to review our processing performance. During Q2, we achieved record production of 67,300 ounces, 12% higher than in Q1. Gold bored and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tonnes processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of mix of mill feed. We had a higher proportion of feed from the open-pit sources and stockpiles. As Tony mentioned, a highlight of the quarter was our mining rate, which increased at every operation. We mined 1.1 million tonnes during the quarter and ended the quarter with 14 million tonnes in stockpile. Site-level operating cash costs averaged $1,878 per ounce, a 2% improvement from Q1. Site-level AISC has increased to $2,028 per ounce, with the increase entirely due to the pickup in the sustaining capital. You may recall, we were below plan for sustaining CapEx in Q1, mainly due to the timing for the delivery of our mobile equipment. We made up a lot for a lot of that in Q2. I'll now call on Gord Leavoy to talk about the milling.
Gord Leavoy: Good morning. We milled 904,000 tonnes in Q2 2026. That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2. But overall, the mill performed much better for the quarter. We exceeded 11,000 tonnes per day on 49 days in Q2, and we exceeded 12,000 tonnes a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per tonne, 14% better than in Q1 and just slightly higher than our best quarterly average to date of $21.20 per tonne in last year's third quarter. I'll now turn over the call to Harold Bird, Vice President of Mineral Processing, to discuss the Kidd operations.
Harold Bird: Thanks, Gord. Good morning. Overall, Kidd operations had good performance in the first month since its acquisition, contributing a positive revenue of $30 million versus production cost of $19 million. Kidd's growth capital primarily related to tailings buttressing and mill modifications to support the processing of Borden ore, which is targeted to begin in the first half of 2027. Further study work has commenced to expand to the Kidd mill process to process Pamour in future years. Kidd operations continues to be a safe, reliable operating mine that currently has a total recordable injury frequency rate of zero. I'd now like to turn the call over to Eric Kallio, our Senior Vice President of Exploration.
Eric Kallio: Okay. Thank you, Harold, and good morning, everyone. I'm on Slide 18 and happy to say it's been another good quarter for exploration with excellent success at operating mines and new growth projects. With this in mind, we might look at, but I'll start here with Pamour, where we drilled another 47 holes and continue to see some very exciting new results. Shown in the image, the main focus here has been remained on three main targets, including the main pits, Pamour West and the North Contact Zone. Additionally, we added a new targeting to the next, it's called Keora Trend and -- which is located west of the main pit. Results for each of the areas are shown in the current image indicated extremely positive, with some of the best results continue to come from the main pit, including pilots of 305 over 30 meters and 2.08 over 24 meters. We continue to see strong results from the Pamour West and our contact areas, including several holes with multiple zones and excellent grades and widths. And then finally, we have the [indiscernible] trend where we're very happy to report a high-grade result of 17.36 grams per tonne over 5.9 meters in the very first hole drilled, 200 meters west of the current resource. And now turning to my next slide, #19. We see the first two images providing different angles for the areas drilled. With this first one looking to the north, we focused on the south side of what's called [indiscernible] trend. Key things to note here are the main pit and Pamour West areas, which are on the central and left side of the slide as well as the overall size of the target area, which we're looking at here, which at this point is a little over 4 kilometers long and at least 400 meters deep. Also notable is a very shallow depth of drilling to date in both areas in the large areas still remaining to be tested below and between. And then turning to the next slide, which is #20, see a view looking to the Southwest, providing a better view for the north side of the trend. Key things to note here will be the current resource, which sits in the background as well as all the intersections in the North Contact and Keora areas, which sit directly to the north. Also provided here is another angle of the Pamour West area. So given all the above, we're very pleased with progress to date at Pamour drilling is continuing here with 4 drills. Additional work has now begun on a new resource update and on track for this year to what we believe will be a very positive result. So then going on next to Slide #21, we see the Dome, which is another project, which we believe has a lot of potential. As previously described, Dome is a historic mining property, which already has over 17 million ounces mined already and where we have a resource of over 11 million ounces, but also now working to upgrade and extend for an updated estimate this year. As indicated on the image, all the new drilling [ delineated ] surrounding the current resource with focus on areas of the Southwest, North and Northeast portions of the property as results continue to look very encouraging. Drilling in the southwest portion of the property included 9 holes to evaluate mineralization near the south limits and continue to indicate excellent grades and widths at very shallow depth. This means we had 8 more holes in the north part of the property and under north wall, which were also very successful with multiple intercepts, including the plight of 9.09 over 17.3 meters. And then finally, we had 1 new holes in the Northeast intersecting quartz vein near the East limit and containing a very high grade asset of [ 278.48 ] grams over 21 meters. And then turning to my next slide, 22. We see another image related provides two different angles across the target area and a little more detail on the new results, with the one on the top covering the south part of the pit, looking northwards and the other covering areas to the north and looking west. Key things to note here will be the red and green lines, which represent current pit shells and underground workings as well as the shallow depth and [indiscernible] in both areas remain open for future testing and expansion. So with this, I'll conclude by saying that similar to Pamour drilling here is looking very good, continuing with 2 drills drills, work has also now begun on a new resource update and on track for year-end. So then turning on to my next slide, 23, you see the TBZ, where we also had very good progress. As described in the past, TBZ is a significant zone of mineralization in the southeast part of Hoyle Pond that was partially drilled and defined by past operators, which remain infill drilling to support a maiden estimate for later this year. Shown on the screen, there are two different angles of the deposit with both being long sections and providing different levels of detail. Turning to the one on left, we see more of an overall view of the size and shape of the zone as indicated, we're looking at a large northeast trending structure just south of the mine between 850 and 1,700 levels and where mineralization is contained mostly in the series of lenses that are highlighted here in the brighter column. Also important to note here on this slide is the close proximity of the zone to current mine workings and location of various drill platforms, including 1210 and 1680 levels, which we have been using for most of the drilling to date. Referring now more to the right-hand side, you see details for the new drilling, which as indicated, are all has been focused really on the 1210 and [ 16 80 ] levels and looking very positive. And just to give you two examples, what we're seeing basically looking at values of 5.13 over 18.2, 7 over 16.9, 5.7 -- 5. 17 over 21. Important to note that all these intersections are similar to or better than previously drilled holes in these areas. [indiscernible] on the above, I'd also like to point out that as part of the latest program work is also initiated to collect samples from metallurgical testing from holes near the 1210 with a total of 4 samples now collected and shipped out with results expected later this year. Given the above, we're very happy with the progress so far. The program is continuing with 3 drills on 1210 and 1680 levels. Turning now to the next slide, which is 24. You see Owl Creek, where we completed another 10 holes and continue to confirm and expand mineralization near the Owl Creek pit. Just for context, the Owl Creek pit is located 1.5 kilometers west of Hoyle Pond mine, on the south side of the [ Porcupine belt ], which is the same contact that the [ Porcupine ] the pit as well as 2 underground [ map ], which you see here on the image were both developed by [ Fulton Ridge Gold ] in the 1980s. Shown on the screen are two images, with the one on the left being the plan of the drill area and the one on the right being a long section providing more details. Turning to the left, we see the new drilling targeted two main areas on the east and west side of the pit and continue to obtain very positive results, with some of the key items on the east side being 7 grams, [ 10.09 ] over 17 and 6.35 over 9.4, highlights to the West, 4.72 over 24 and 19.35 over 5.4. So turning now to the right side. We see looking north across the zone that again another angle on the results and showing the overall pattern of holes going to depth from West to East. Important to note here is the holes on the left are the ones drilled directly below the pit and the ones on the right are what we call into the wide high-grade zone. Also important to note here is what we think is very good continuity between areas and limited drilling, which exists below the 650-meter level and in areas going to [indiscernible]. In terms of current activities, drilling is continuing here with 2 drills on site focused on further confirmation expansion. Additionally, in light of the good success, work has now been initiated on a new exploration grant from Hoyle Pond mine, which allow more detailed drilling both here and in the areas between. Although not shown in the image, we expected the will -- we'll enter the zone from the east side near the 300-meter level and allow quick access to the zone. The expected completion date is in Q3 2027. And then turning to Slide 25. We see an overall view of the Borden mine where we have also been very busy. As described in the past, Borden is located west of Timmins and center on a major east-west [indiscernible] shear zone called the Main Zone, which has now been traced and mined for distance of over 2 kilometers. In terms of recent exploration, pretty much all work is focused on the Far East side and on extending the main and East lower zones from platforms underground near the 585 level as well as some surface northeast of the mine of the main zone. In terms of results, they have all been very positive with excellent grade width both within and outside the current resource shapes in both zones targeted with some of the key highlights from underground reaching levels such as 9.16 over [ 29.0 ] meters. And the highlight of the program, I think new intersection on surface of 6.34 over 8.7, 500 meters down plunge from the inferred resource. So then moving on to Slide 26, I have one more image related to this area, which is a 3D looking northwards across the area drilled and showing more detail on all the new holes. Key things to note here might be all the holes were drilled from the 585 level, which is the green line at the top of the drilling; and targeting at and beyond the current limit of the inferred resource, which is shown here in light blue. I'll also point out location to the new surface hole, [ 26 11 19 ], which is in the far left side and located 500 meters from the current resource. So with this being my last slide, I just like to say in summary, things still continue to go well and a lot more to come. So with that, I'll pass over to Jose Jabalera, our VP, Corporate Affairs and Sustainability Mexico.
Jose Jabalera: Thanks, Eric. In Cordero, on July 24, we received an official visit from senior-level [ SEMARNAT ] officials with very good outcome from the project and from the visit. So we right now are in the final stages of the environmental permitting process. At the same time, we are continuing with the studies to update capital and cost estimates as well as more detailed studies regarding water and power for the project. So I will pass to our CEO, Tony Makuch.
Anthony Makuch: Thanks, everybody. And hopefully -- not hopefully, last slide. This will be the last slide, Slide 28. And I think you get a sense there's a lot of things going on, whether it operated exploration, development. A lot of projects here in this slide, and really this is a slide that maybe we put together when we first started with the acquisition of [indiscernible] with Discovery, we tried to show how gold production grow well over 0.5 million ounces a year. And by the way, this doesn't include Cordero here, which is even over and above that. But you can see from our quarter 2 results we achieved in exploration, the acquisition of Kidd, our continued investment in operations. It's -- we can see how we're demonstrating what was going on here that we're taking the vision from concept to reality in terms of what we can build in [indiscernible] and build in the Discovery as a whole. Looking at the slide, [indiscernible], as we talked about now expected to become a much larger mine than the 150,000 ounce a year producer. As outlined in last year's technical report that we showed 150,000 ounces a year up to 2047, I think, in the report. As I mentioned, we're taking -- we are working on a mine redesign for Pamour and a new large-scale processing plant at the [indiscernible] to support this. This then unlocks the Dome mill for the Dome mine, which at current levels are greater, could produce over 200,000 ounces a year. We'll give you a better sense of what that looks like later this year when we update the resource. We also have growth potential at Borden, as outlined by Eric, in terms of what you see plus the processing as we build processing capacity for both Borden and then looking at the investments we're planning. And then there's TBZ and Owl Creek at Hoyle Pond. We have -- we're planning an initial [indiscernible] resource for TBZ later this year, and we'll continue working towards a resource at Owl Creek. There's still a lot of work to still to be done. There's probably some of the exploration targets, I know there is that we haven't even talked about here. There's much more to our story lying ahead of us and a lot of exciting things to do. I think one of the things that's also important and maybe we should acknowledge, and Harold talked about the safety performance at Kidd and a TMIFR of zero. And I know there's been a significant improvement in our TMIFR in all of mine operations down to 1. So effectively, we're running mines here, underground mines and open-pit mines and processing plants in the [ payments ] camp that's safer to work better than to be working at Walmart or working at Canadian Tire. So we're really proud of that, and we want to maintain that as we go forward. Anyway, with that, I want to thank everyone for being on the call, and I'd be happy to take any questions.
Operator: [Operator Instructions]Your first question comes from the line of Larry Liu with CIBC.
Chunshan Liu: I guess I'll kick off the first question with free cash flow. So free cash flow turned negative this quarter, but for very good reasons, right, for timing cash flow from Kidd and other items. I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operation optimization from here?
Alison White: Yes, Larry. So I'll be happy to take that question and talk about the benefits for us in implementing the new system. So you may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont. And so the company then simultaneously set up its own instance of SAP, and that SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go-forward basis. It's also going to obviously be in our full control since it's a Discovery implemented instance that has been set up in the -- with the full complement of everything that we typically look at and that we typically like to track. So we are anticipating that we will see some additional value going forward. We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing, and we'll be able to provide some additional clarity on all the growth that's coming in the future.
Anthony Makuch: In summary, like effectively, we were we've been operating under the code of accounts and the accounting practices that we were limited to what -- how SAP was set up under Newmont. We're -- we can now implement it more on our way, as Alison mentioned, and we have a different view on our management accounting and how we can counter things. So we see that as a big value driver in terms of -- as I say, we can turn the finance team, the accounting team from -- into profit centers for the company.
Chunshan Liu: Yes. No, for sure. Good to hear that things are doing the Discovery way, doing the best way possible. And I guess kind of on that note as well, Tony and Alison, can you remind us what's kind of your view for Kidd Creek, both near term and longer term? I know this quarter because of timing of cash flow, the operation kind of had a little bit of negative free cash flow. But for the rest of the year, should we still expect positive free cash flow? And how does it help with the operation or hitting that 500,000 ounce in the near to medium term?
Alison White: So Larry, this is sort of the -- the first and only month that we'll see this cash flow differential that we did see because of the timing of the offtake agreements and the way that the sales agreements were structured. The cash is remitted back to the organization in the following months after the sale. And so because the transaction occurred as of June 1, there will -- this quarter, because it ended on June 30, we do see that gap in terms of sale versus cash remittance. But on a go-forward basis, there will always be a 1-month lag. But it will be a constant 1-month lag, and we will have that catch-up in terms of cash and sales on a go-forward basis. So we'll still be a month behind in cash collection, but that will be something that you'll see roll into the overall financials on a go-forward basis.
Anthony Makuch: Yes. Effectively, as Harold mentioned, we had almost $30 million in revenue with $19 million in costs. So yes, the cash is going to come in a month later based on the offtake agreements and how concentrates get moved, but it really was positive.
Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.
Mark Utting: Well, listen, thanks, everyone, for participating in today's call. You've heard we've got two key parts when we talk to the market that we address. And one is the significant improvement you're seeing in performance as we go quarter-to-quarter and in this case, particularly compared to last year's second quarter. But we also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today. And on that second quarter was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call when we can tell you about how much further we've come. Thanks very much.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
Mark Utting: Good morning, everybody. Thank you very much for joining us on Discovery's Second Quarter 2026 Conference Call and Webcast. As you just heard, I'm Mark Utting, Senior Vice President, Investor Relations. Joining me today are many members of Discovery's senior executive team. Speaking today will be Tony Makuch, our President, CEO and Chairman; Alison White, our Chief Financial Officer; Duncan King, our Senior Vice President, Canadian Operations; Gord Leavoy, our Senior Vice President, Mineral Processing; Harold Bird, our Vice President, Mineral Processing; Eric Kallio, our Senior Vice President of Exploration; Jose Jabalera, our Senior Vice President in Mexico. We'll then turn it back over to Tony for concluding remarks. Just before we get started, as always, I'll remind you that during today's call, we will be making forward-looking statements. These statements are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. And for more information, please refer to Slide 2 on our slide deck as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP and therefore, may not be comparable to other issuers. Slide 3 in the deck deals with cautionary language around non-GAAP measures. Lastly for me, all dollar amounts today will be expressed in U.S. dollars unless otherwise indicated. With that, I'll now turn the call over to Tony Makuch.
Anthony Makuch: Thanks, Mark, and good morning, everyone. It's really good to be able to be here. Actually, I think maybe before we start, we had a really -- I think we had some pretty good results in the quarter. Things went well or are progressing well. I know that like there's a lot of stuff hiding in the background that maybe people don't see and we don't talk about a lot of people did a lot of good work, a lot of people that did a lot of good work. Some of the results aren't really shown in this quarter. You'll be seeing them in future quarters. But what we talk about and all the benefits that we see and all the results we see, it's really -- we get the chance to talk about it and tell you about it, but there's a lot of really good people working in the company throughout the operations, and they're the ones who did all the good work. So before we start, thank them for the results and we recognize really what everybody is doing. And so stay tuned. We're going to talk about good things that happen here, but stay tuned. There's still a lot to story. Anyway, I'll start with Slide 4. This is a slide that we used a lot in the past to try to show things in terms of where we are in value creation and about our growth to over 0.5 million ounces of gold in production over the next 3 to 5 years. It looks at the potential for Cordero and what we think we can bring to Cordero 14 million ounce silver production rate, but on an equivalent silver equivalent basis, depending on silver prices, the significant zinc and lead production there and definitely a world-class silver project in Mexico, just waiting for a permit. And then looking at our gold business and what we're doing, we now believe that growth has the potential to be significantly greater than what we show here. And that's a forward-looking statement that Mark talked about earlier. And during this presentation, we will show you why we are confident that this can be achieved. Moving to Slide 5, second quarter was favorable, and we did have a lot of good works. And definitely, we've done a lot of progress in advancing our growth plans. And maybe there were three key developments during the quarter that really highlight when we first, we completed the acquisition of Kidd operations. Second, we continue to achieve outstanding exploration results. And we -- on the exploration results, like we originally were putting on one press release. Now we put out three press releases in the last 3 weeks. instead of lumping them into one, there's so much good information on all, we realize we probably have to start presenting them each individually. And you can see there's excellent drill results at all of our exploration targets, and we expect that to continue. We really think that this is as much -- as much as this is a production and business story and a going concern operation that's financially viable and as much as this is a growth story, this is -- this could be an exploration story as well on steroids. And so we had a lot of good exploration results, and we did ramp up our investments in the quarter. And we've had definitely -- we're focusing on trying to improve our operations. But going to Slide 6, this looks at the Kidd acquisition. And I think in our last call, we did talk a lot about it. But summing it up, the growth we talked about, this is really a big enabler besides the exploration, besides the people and what we're doing in the Porcupine camp, besides all the good geology, et cetera, that we see here and the infrastructure in place, the acquisition of the Kidd operations really helps us to achieve the growth that we're targeting over the time frame that we plan to achieve it. And a big part of it is the Kidd Metallurgical Site and what we can do there. And we'll probably be talking more and more in future as the year progresses in terms of the benefits of that. We're not going to get into too much of the details of that, but that was a significant acquisition that really enables us to move forward. And maybe when we talk about it, there's a current processing capacity there. But for us to grow our operation, optimize Hoyle Pond and [ Pamour ] without this infrastructure and the geography, the land position, the power, the water that comes with get operation; maybe I can talk to that, maybe I shouldn't. And this is a very important acquisition for Discovery. Slide 7 shows what we know from the last quarterly call and sort of gives a sort of concept that lays out our plan for construction of the new conventional gold circuit incorporated into space that was the A division. You can see that some of the conceptual diagrams of where the infrastructure will go. We are currently reviewing what this circuit will look like and are advancing engineering and design work. And I can tell you that we have moving parts, the exploration success and sort of are productivity rates that we might design for. There's still a lot being added to the story. So we got a lot of blank pages. We might have a lot of headings and chapters written in the book, but all the content is being rewritten as we speak in terms of what we're doing there. The B circuit, that's at Kidd. There is 4 circuits, as we've talked about before. The B circuit will continue to be used as a base metal circuit and now processing the Kidd Creek material at least for 2026 and all of 2027. For the C circuit, we are doing test work now, and we expect that this circuit will be used to process Borden [ North ] starting sometime next year. And we see this could add some something up to 40,000 ounces in annual production just in our current form. And where do we get that from? Well, it will add 2,000 tonnes a day of added availability at Dome. We can see improved metallurgical recoveries at all -- at the ores processed at the Dome mill currently, plus we think we're going to get that improvement in recoveries from Borden, right? And it also gives us the ability to process higher levels of Borden ore at Kidd. So maybe it gives us the ability to increase productivity from Borden because we were limited to how much Borden ore could be intermingled into the gold circuit at Dome. And with the Kidd Met Site, we also investigated future plans for the D circuit. Our goal would be to have the TVZ and/or other materials processed here. And so we still have a lot to work there, but really an enabler in a lot of ways. Slide 8 looks at the exploration. I mentioned we had three press releases over the last 3 weeks, all with excellent results. Eric is going to talk about this later. So I'll just focus on a couple of things and maybe highlights. We're excited about Pamour, based on recent drilling. And tied into past drilling, we've established that the mineralizing system over -- we've identified over strike length of more than 4 kilometers. The system remains open in all directions and at depth. And we've talked previously about the depth potential in this region of the camp in terms of depth of Hoyle Pond, where it's down to 2,000 meters, I should say, and the depth that was at the [ Pamour ] project, which is on -- strike on the same system. It's not a mine that we have, but was mined down to 5,000 feet. So there's a lot of significant upside here. We're currently working on a mine redesign for the Pamour pit, and we expect Pamour to become a much larger producer and with that, as I talked about earlier in terms of the processing capacity and what we might build at Kidd A circuit to support a much larger open pit operation here. And the other point that I'll make is that Dome is the second large open-pit operation. We expect to be able to bring online. It has transformational growth potential. And by -- what we do at Kidd with the Kidd A circuit and being able to move Pamour there, this enables the Dome mill in its current form to be used to process and to start the Dome open pit. This is again, this is all future-looking stuff. We do also have longer term, the [indiscernible] as a potential third large-scale open pit. But again, that's -- maybe we just start with the Pamour and then see how Pamour goes to Dome. But we truly believe that the Discovery operates 3 of Canada's largest open-pit gold mines all located in the Timmins County. Going to Slide 9, it looks at our Q2 capital expenditures. As expected, our CapEx went up in Q2, totaling $86 million. That reflects our progress on a number of fronts at tailings, we're advancing our tailings project at Dome to build up our tailings capacity. We continue to do pre-stripping at Pamour. Our goal is to bring Pamour to commercial production. And we're investing in new fleets of equipment and infrastructure at both Hoyle Pond and Borden. And we expect to see further progress and further investments in CapEx over the year, et cetera. And that's been our goal here to invest back into these operations to build to not only build production, but also to improve the operating performance. So not just growing production, but improving performance and reducing costs. Unit cost, maybe I should highlight that better. In terms of Slide 10, it highlights our Q2 operating performance. Again, on this, I will leave the financial results for Alison to review, but I'll say that virtually every financial metric improved substantially from last year's second quarter. We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both prior periods. And speaking of record results, we achieved record gold production in Q2. Production increased over 10% from the previous quarter. Duncan and Gord will get into the details, but the increase was largely due to higher throughput. And a key highlight for the quarter was that both mining and milling rates showed strong growth at every operation. Finally for me in this part before I pass it on to Alison, Slide 11 shows our 2026 guidance. And again, I will tell you that we are tracking well to achieve all of our guidance for the year. And with that, I'll turn the call over to Alison White, our CFO.
Alison White: Thanks, Tony, and good morning, everyone. Overall, it was another solid quarter, reflecting the continued momentum that we built in Q1 and certainly that we've continued to build over the past year of operations. We had robust revenues during Q2 of $319 million, an increase of 12% quarter-over-quarter, primarily reflecting higher ounces sold and the impact of the Kidd operations from the closing on June 1, which did contribute $30 million to revenues during Q2. Revenue has increased steadily since the same quarter of the prior year, our fourth consecutive quarter of growth, driven by the operational team efforts to lift production and by higher gold prices over the same period of time. We've moved more tonnes during the quarter compared to the prior quarter at a lower cost per tonne, coupled with higher number of ounces sold during the period and partially offset by a planned reduction in grade. As a result, cash cost per ounce were $1,387 per ounce sold. As we've said before, we expect unit cost to be the highest in the first half of the year and improve during the second half of 2026 as production and sales volumes build. All-in sustaining costs averaged $2,154 per ounce sold, reflecting expected higher sustaining capital expenditures, partially offset by the lower cash costs. The ramp-up of sustaining capital reflected capital development and infrastructure improvements at Hoyle Pond and Borden, additional deliveries of new mobile equipment and construction work at the tailings TMA6 project. EBITDA of $170 million was similar to the prior quarter as the contribution from the Kidd operations offset the decrease in the average realized gold price. That said, and similar to my comments on revenue, we've carried strong EBITDA momentum from last year. Free cash outflow of $11 million reflected the ramp-up of our capital expenditures program and the impact of $56 million in working capital changes, reflecting accelerated payments of accounts payable prior to a new system implementation that occurred at the end of the quarter. Funding of the Kidd operations that were offset by the first month's impact, where no cash was received for Kidd revenues in June due to the timing of the receipts for -- in the month following for sales according to the new offtake agreements. Discovery deployed $86 million in capital expenditures to further advance the asset base at Porcupine, consistent with our capital allocation plan and toward our vision of reinvesting in the business to build value over the long term. Operating and free cash flow reflect the reinvestment in the business through the company's capital expenditure programs and the impact of working capital described earlier. Let's move on to the next slide to review net income and adjusted net income. On an adjusted basis, earnings were $92.3 million or $0.11 per share compared to $82.7 million or $0.10 per share in the prior quarter and $28.4 million or $0.04 per share during Q2 2025. The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a onetime deferred tax expense resulting from a change in the discount rate methodology from the acquisition date fair value for the Kidd acquisition subsequent to remeasurement, which had a $0.02 impact. TSA and other onetime costs had a $0.01 impact. The purchase price allocation adjustments related to the Kidd acquisition for the fair value also had a $0.01 impact and finally, another $0.01 for the payments to First Nations in relation to the closing of the Kidd acquisition and reclamation expenses for nonoperating sites. To summarize, adjusted earnings were up quarter-over-quarter and nearly 3x from only 1 year ago when the company initiated operations through the acquisition of Porcupine. Let's turn to the next slide to review our capital priorities. First, we are actively investing to drive future growth. Our capital spend program is robust during the current year with $195 million to $235 million planned for growth capital at Porcupine, including an additional $25 million to $35 million for capitalized exploration and $120 million to $165 million planned for sustaining capital. The capital spend program includes replacing equipment, expanding mill capacity and working to enhance future production levels through exploration and conversion drilling across the business that continues at a rapid pace. Second, we are strengthening our balance sheet. Despite the period of reinvestment that I just spoke about, we had over $600 million in liquidity at the end of the quarter, with $364 million in cash and since the close of the quarter during July, have upsized the company's revolving credit facility to $400 million, bringing total current liquidity to over $750 million. As we look to continue to expand and grow, our financial strength will be fundamental to our success. We continue to build on the momentum that began last year across all of our key financial metrics. Revenue and EBITDA have remained robust each of the last 4 quarters and equally through strong earnings generation. Let's take a look at our liquidity position on the next slide. Discovery's cash balance totaled $364 million at the end of the quarter. The gold price environment translated into $130 million of operating cash flow, partially offset by the working capital adjustments and continued capital investments that were covered earlier. This leaves us with a strong balance sheet and the financial flexibility to fund our capital programs and advance our strategic priorities that underpin our vision with confidence. And I'm now going to pass it over to Duncan King, our Senior Vice President of Canadian Operations.
Duncan King: Thank you. I'll discuss our production numbers and then ask Gord Leavoy to review our processing performance. During Q2, we achieved record production of 67,300 ounces, 12% higher than in Q1. Gold bored and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tonnes processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of mix of mill feed. We had a higher proportion of feed from the open-pit sources and stockpiles. As Tony mentioned, a highlight of the quarter was our mining rate, which increased at every operation. We mined 1.1 million tonnes during the quarter and ended the quarter with 14 million tonnes in stockpile. Site-level operating cash costs averaged $1,878 per ounce, a 2% improvement from Q1. Site-level AISC has increased to $2,028 per ounce, with the increase entirely due to the pickup in the sustaining capital. You may recall, we were below plan for sustaining CapEx in Q1, mainly due to the timing for the delivery of our mobile equipment. We made up a lot for a lot of that in Q2. I'll now call on Gord Leavoy to talk about the milling.
Gord Leavoy: Good morning. We milled 904,000 tonnes in Q2 2026. That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2. But overall, the mill performed much better for the quarter. We exceeded 11,000 tonnes per day on 49 days in Q2, and we exceeded 12,000 tonnes a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per tonne, 14% better than in Q1 and just slightly higher than our best quarterly average to date of $21.20 per tonne in last year's third quarter. I'll now turn over the call to Harold Bird, Vice President of Mineral Processing, to discuss the Kidd operations.
Harold Bird: Thanks, Gord. Good morning. Overall, Kidd operations had good performance in the first month since its acquisition, contributing a positive revenue of $30 million versus production cost of $19 million. Kidd's growth capital primarily related to tailings buttressing and mill modifications to support the processing of Borden ore, which is targeted to begin in the first half of 2027. Further study work has commenced to expand to the Kidd mill process to process Pamour in future years. Kidd operations continues to be a safe, reliable operating mine that currently has a total recordable injury frequency rate of zero. I'd now like to turn the call over to Eric Kallio, our Senior Vice President of Exploration.
Eric Kallio: Okay. Thank you, Harold, and good morning, everyone. I'm on Slide 18 and happy to say it's been another good quarter for exploration with excellent success at operating mines and new growth projects. With this in mind, we might look at, but I'll start here with Pamour, where we drilled another 47 holes and continue to see some very exciting new results. Shown in the image, the main focus here has been remained on three main targets, including the main pits, Pamour West and the North Contact Zone. Additionally, we added a new targeting to the next, it's called Keora Trend and -- which is located west of the main pit. Results for each of the areas are shown in the current image indicated extremely positive, with some of the best results continue to come from the main pit, including pilots of 305 over 30 meters and 2.08 over 24 meters. We continue to see strong results from the Pamour West and our contact areas, including several holes with multiple zones and excellent grades and widths. And then finally, we have the [indiscernible] trend where we're very happy to report a high-grade result of 17.36 grams per tonne over 5.9 meters in the very first hole drilled, 200 meters west of the current resource. And now turning to my next slide, #19. We see the first two images providing different angles for the areas drilled. With this first one looking to the north, we focused on the south side of what's called [indiscernible] trend. Key things to note here are the main pit and Pamour West areas, which are on the central and left side of the slide as well as the overall size of the target area, which we're looking at here, which at this point is a little over 4 kilometers long and at least 400 meters deep. Also notable is a very shallow depth of drilling to date in both areas in the large areas still remaining to be tested below and between. And then turning to the next slide, which is #20, see a view looking to the Southwest, providing a better view for the north side of the trend. Key things to note here will be the current resource, which sits in the background as well as all the intersections in the North Contact and Keora areas, which sit directly to the north. Also provided here is another angle of the Pamour West area. So given all the above, we're very pleased with progress to date at Pamour drilling is continuing here with 4 drills. Additional work has now begun on a new resource update and on track for this year to what we believe will be a very positive result. So then going on next to Slide #21, we see the Dome, which is another project, which we believe has a lot of potential. As previously described, Dome is a historic mining property, which already has over 17 million ounces mined already and where we have a resource of over 11 million ounces, but also now working to upgrade and extend for an updated estimate this year. As indicated on the image, all the new drilling [ delineated ] surrounding the current resource with focus on areas of the Southwest, North and Northeast portions of the property as results continue to look very encouraging. Drilling in the southwest portion of the property included 9 holes to evaluate mineralization near the south limits and continue to indicate excellent grades and widths at very shallow depth. This means we had 8 more holes in the north part of the property and under north wall, which were also very successful with multiple intercepts, including the plight of 9.09 over 17.3 meters. And then finally, we had 1 new holes in the Northeast intersecting quartz vein near the East limit and containing a very high grade asset of [ 278.48 ] grams over 21 meters. And then turning to my next slide, 22. We see another image related provides two different angles across the target area and a little more detail on the new results, with the one on the top covering the south part of the pit, looking northwards and the other covering areas to the north and looking west. Key things to note here will be the red and green lines, which represent current pit shells and underground workings as well as the shallow depth and [indiscernible] in both areas remain open for future testing and expansion. So with this, I'll conclude by saying that similar to Pamour drilling here is looking very good, continuing with 2 drills drills, work has also now begun on a new resource update and on track for year-end. So then turning on to my next slide, 23, you see the TBZ, where we also had very good progress. As described in the past, TBZ is a significant zone of mineralization in the southeast part of Hoyle Pond that was partially drilled and defined by past operators, which remain infill drilling to support a maiden estimate for later this year. Shown on the screen, there are two different angles of the deposit with both being long sections and providing different levels of detail. Turning to the one on left, we see more of an overall view of the size and shape of the zone as indicated, we're looking at a large northeast trending structure just south of the mine between 850 and 1,700 levels and where mineralization is contained mostly in the series of lenses that are highlighted here in the brighter column. Also important to note here on this slide is the close proximity of the zone to current mine workings and location of various drill platforms, including 1210 and 1680 levels, which we have been using for most of the drilling to date. Referring now more to the right-hand side, you see details for the new drilling, which as indicated, are all has been focused really on the 1210 and [ 16 80 ] levels and looking very positive. And just to give you two examples, what we're seeing basically looking at values of 5.13 over 18.2, 7 over 16.9, 5.7 -- 5. 17 over 21. Important to note that all these intersections are similar to or better than previously drilled holes in these areas. [indiscernible] on the above, I'd also like to point out that as part of the latest program work is also initiated to collect samples from metallurgical testing from holes near the 1210 with a total of 4 samples now collected and shipped out with results expected later this year. Given the above, we're very happy with the progress so far. The program is continuing with 3 drills on 1210 and 1680 levels. Turning now to the next slide, which is 24. You see Owl Creek, where we completed another 10 holes and continue to confirm and expand mineralization near the Owl Creek pit. Just for context, the Owl Creek pit is located 1.5 kilometers west of Hoyle Pond mine, on the south side of the [ Porcupine belt ], which is the same contact that the [ Porcupine ] the pit as well as 2 underground [ map ], which you see here on the image were both developed by [ Fulton Ridge Gold ] in the 1980s. Shown on the screen are two images, with the one on the left being the plan of the drill area and the one on the right being a long section providing more details. Turning to the left, we see the new drilling targeted two main areas on the east and west side of the pit and continue to obtain very positive results, with some of the key items on the east side being 7 grams, [ 10.09 ] over 17 and 6.35 over 9.4, highlights to the West, 4.72 over 24 and 19.35 over 5.4. So turning now to the right side. We see looking north across the zone that again another angle on the results and showing the overall pattern of holes going to depth from West to East. Important to note here is the holes on the left are the ones drilled directly below the pit and the ones on the right are what we call into the wide high-grade zone. Also important to note here is what we think is very good continuity between areas and limited drilling, which exists below the 650-meter level and in areas going to [indiscernible]. In terms of current activities, drilling is continuing here with 2 drills on site focused on further confirmation expansion. Additionally, in light of the good success, work has now been initiated on a new exploration grant from Hoyle Pond mine, which allow more detailed drilling both here and in the areas between. Although not shown in the image, we expected the will -- we'll enter the zone from the east side near the 300-meter level and allow quick access to the zone. The expected completion date is in Q3 2027. And then turning to Slide 25. We see an overall view of the Borden mine where we have also been very busy. As described in the past, Borden is located west of Timmins and center on a major east-west [indiscernible] shear zone called the Main Zone, which has now been traced and mined for distance of over 2 kilometers. In terms of recent exploration, pretty much all work is focused on the Far East side and on extending the main and East lower zones from platforms underground near the 585 level as well as some surface northeast of the mine of the main zone. In terms of results, they have all been very positive with excellent grade width both within and outside the current resource shapes in both zones targeted with some of the key highlights from underground reaching levels such as 9.16 over [ 29.0 ] meters. And the highlight of the program, I think new intersection on surface of 6.34 over 8.7, 500 meters down plunge from the inferred resource. So then moving on to Slide 26, I have one more image related to this area, which is a 3D looking northwards across the area drilled and showing more detail on all the new holes. Key things to note here might be all the holes were drilled from the 585 level, which is the green line at the top of the drilling; and targeting at and beyond the current limit of the inferred resource, which is shown here in light blue. I'll also point out location to the new surface hole, [ 26 11 19 ], which is in the far left side and located 500 meters from the current resource. So with this being my last slide, I just like to say in summary, things still continue to go well and a lot more to come. So with that, I'll pass over to Jose Jabalera, our VP, Corporate Affairs and Sustainability Mexico.
Jose Jabalera: Thanks, Eric. In Cordero, on July 24, we received an official visit from senior-level [ SEMARNAT ] officials with very good outcome from the project and from the visit. So we right now are in the final stages of the environmental permitting process. At the same time, we are continuing with the studies to update capital and cost estimates as well as more detailed studies regarding water and power for the project. So I will pass to our CEO, Tony Makuch.
Anthony Makuch: Thanks, everybody. And hopefully -- not hopefully, last slide. This will be the last slide, Slide 28. And I think you get a sense there's a lot of things going on, whether it operated exploration, development. A lot of projects here in this slide, and really this is a slide that maybe we put together when we first started with the acquisition of [indiscernible] with Discovery, we tried to show how gold production grow well over 0.5 million ounces a year. And by the way, this doesn't include Cordero here, which is even over and above that. But you can see from our quarter 2 results we achieved in exploration, the acquisition of Kidd, our continued investment in operations. It's -- we can see how we're demonstrating what was going on here that we're taking the vision from concept to reality in terms of what we can build in [indiscernible] and build in the Discovery as a whole. Looking at the slide, [indiscernible], as we talked about now expected to become a much larger mine than the 150,000 ounce a year producer. As outlined in last year's technical report that we showed 150,000 ounces a year up to 2047, I think, in the report. As I mentioned, we're taking -- we are working on a mine redesign for Pamour and a new large-scale processing plant at the [indiscernible] to support this. This then unlocks the Dome mill for the Dome mine, which at current levels are greater, could produce over 200,000 ounces a year. We'll give you a better sense of what that looks like later this year when we update the resource. We also have growth potential at Borden, as outlined by Eric, in terms of what you see plus the processing as we build processing capacity for both Borden and then looking at the investments we're planning. And then there's TBZ and Owl Creek at Hoyle Pond. We have -- we're planning an initial [indiscernible] resource for TBZ later this year, and we'll continue working towards a resource at Owl Creek. There's still a lot of work to still to be done. There's probably some of the exploration targets, I know there is that we haven't even talked about here. There's much more to our story lying ahead of us and a lot of exciting things to do. I think one of the things that's also important and maybe we should acknowledge, and Harold talked about the safety performance at Kidd and a TMIFR of zero. And I know there's been a significant improvement in our TMIFR in all of mine operations down to 1. So effectively, we're running mines here, underground mines and open-pit mines and processing plants in the [ payments ] camp that's safer to work better than to be working at Walmart or working at Canadian Tire. So we're really proud of that, and we want to maintain that as we go forward. Anyway, with that, I want to thank everyone for being on the call, and I'd be happy to take any questions.
Operator: [Operator Instructions]Your first question comes from the line of Larry Liu with CIBC.
Chunshan Liu: I guess I'll kick off the first question with free cash flow. So free cash flow turned negative this quarter, but for very good reasons, right, for timing cash flow from Kidd and other items. I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operation optimization from here?
Alison White: Yes, Larry. So I'll be happy to take that question and talk about the benefits for us in implementing the new system. So you may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont. And so the company then simultaneously set up its own instance of SAP, and that SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go-forward basis. It's also going to obviously be in our full control since it's a Discovery implemented instance that has been set up in the -- with the full complement of everything that we typically look at and that we typically like to track. So we are anticipating that we will see some additional value going forward. We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing, and we'll be able to provide some additional clarity on all the growth that's coming in the future.
Anthony Makuch: In summary, like effectively, we were we've been operating under the code of accounts and the accounting practices that we were limited to what -- how SAP was set up under Newmont. We're -- we can now implement it more on our way, as Alison mentioned, and we have a different view on our management accounting and how we can counter things. So we see that as a big value driver in terms of -- as I say, we can turn the finance team, the accounting team from -- into profit centers for the company.
Chunshan Liu: Yes. No, for sure. Good to hear that things are doing the Discovery way, doing the best way possible. And I guess kind of on that note as well, Tony and Alison, can you remind us what's kind of your view for Kidd Creek, both near term and longer term? I know this quarter because of timing of cash flow, the operation kind of had a little bit of negative free cash flow. But for the rest of the year, should we still expect positive free cash flow? And how does it help with the operation or hitting that 500,000 ounce in the near to medium term?
Alison White: So Larry, this is sort of the -- the first and only month that we'll see this cash flow differential that we did see because of the timing of the offtake agreements and the way that the sales agreements were structured. The cash is remitted back to the organization in the following months after the sale. And so because the transaction occurred as of June 1, there will -- this quarter, because it ended on June 30, we do see that gap in terms of sale versus cash remittance. But on a go-forward basis, there will always be a 1-month lag. But it will be a constant 1-month lag, and we will have that catch-up in terms of cash and sales on a go-forward basis. So we'll still be a month behind in cash collection, but that will be something that you'll see roll into the overall financials on a go-forward basis.
Anthony Makuch: Yes. Effectively, as Harold mentioned, we had almost $30 million in revenue with $19 million in costs. So yes, the cash is going to come in a month later based on the offtake agreements and how concentrates get moved, but it really was positive.
Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.
Mark Utting: Well, listen, thanks, everyone, for participating in today's call. You've heard we've got two key parts when we talk to the market that we address. And one is the significant improvement you're seeing in performance as we go quarter-to-quarter and in this case, particularly compared to last year's second quarter. But we also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today. And on that second quarter was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call when we can tell you about how much further we've come. Thanks very much.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.