Alamos Gold Inc (AGI) 2024 Q3 法說會逐字稿

Good morning. I'll now turn the call over to Scott Parsons, Alamos Senior Vice President of Investor Relations. Please go ahead.

早安.我現在將把電話轉給阿拉莫斯投資者關係高級副總裁 Scott Parsons。請繼續。

Thank you, operator, and thanks to everybody for attending Alamos' Third Quarter 2024 Conference Call. In addition to myself, we have on the line today John McCluskey, President and Chief Executive Officer; Greg Fisher, Chief Financial Officer; Luc Guimond, Chief Operating Officer; and Scott RG Parsons, Vice President of Exploration.

謝謝業者，也謝謝大家參加阿拉莫斯 2024 年第三季電話會議。今天除了我本人之外，我們還有總裁兼執行長約翰‧麥克拉斯基 (John McCluskey)；格雷格·費雪，財務長； Luc Guimond，營運長；和勘探副總裁 Scott RG Parsons。

We will be referring to a presentation during the conference call that is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MD&A as well as the risk factors set out in our annual information form. Technical information in this presentation has been reviewed and approved by Chris Bostwick, our Senior VP, Technical Services and a qualified person. Also, please bear in mind that all the dollar amounts mentioned in the conference call are in US dollars, unless otherwise noted.

我們將參考電話會議期間的演示文稿，該演示文稿可透過網路廣播和我們的網站取得。我還想提醒大家，我們的演講之後將會有問答環節。由於我們將在電話會議期間做出前瞻性陳述，因此請參閱簡報、新聞稿和 MD&A 中包含的警示說明以及我們的年度資訊表中列出的風險因素。本簡報中的技術資訊已由我們的技術服務資深副總裁兼合格人員 Chris Bostwick 審核並批准。另外，請記住，除非另有說明，電話會議中提到的所有美元金額均為美元。

Now John will provide you with an overview.

現在約翰將為您提供概述。

Thank you, Scott. The third quarter marks the first quarter with Magino mine under our ownership, having completed the acquisition of Argonaut Gold in July, reflecting the addition of Magino as well as strong performances from Island Gold and the Mulatos District, we delivered record production in the quarter of 152,000 ounces of gold. As guided, all-in sustaining costs of $1,425 per ounce, increased from earlier in the year, reflecting the inclusion of higher cost production from Magino with the operation undergoing a transition period. With year-to-date production of 427,000 ounces, we remain on track to achieve our full year production guidance, which was increased by 13% in September, reflecting the inclusion of Magino and outperformance of Mulatos.

謝謝你，斯科特。第三季度標誌著我們擁有Magino 礦的第一季度，我們於7 月完成了對Argonaut Gold 的收購，反映出Magino 的加入以及Island Gold 和Mulatos 區的強勁表現，我們在本季度實現了創紀錄的產量152,000 盎司黃金。按照指導，總維持成本為每盎司 1,425 美元，較今年稍早增加，反映出 Magino 的生產成本較高，且該業務正處於過渡期。今年迄今為止的產量為 427,000 盎司，我們仍有望實現全年產量指導，該產量指導在 9 月份增長了 13%，反映出 Magino 的納入以及 Mulatos 的出色表現。

We are also on track to meet our full year cost guidance with a marginal decrease in costs expected in the fourth quarter. We achieved a number of new financial records in the third quarter, driven by record production and gold prices. This included our third consecutive quarter of record revenue as well as record cash flow from operations before working capital of $193 million. We continue to generate strong ongoing free cash flow, including $88 million in the quarter and $219 million year-to-date, while funding our high-growth, high-return initiatives. These include our latest exploration -- largest exploration budget ever, and the Phase III expansion at Island Gold, which will be a driver of significant free cash flow in the years ahead.

我們也有望實現全年成本指導，預計第四季成本將小幅下降。在創紀錄的產量和金價的推動下，我們在第三季創下了多項新的財務紀錄。這包括我們連續第三個季度創紀錄的收入以及創紀錄的營運資本前營運現金流 1.93 億美元。我們繼續產生強勁的持續自由現金流，包括本季的 8,800 萬美元和年初至今的 2.19 億美元，同時為我們的高成長、高回報計畫提供資金。其中包括我們最新的勘探——有史以來最大的勘探預算，以及 Island Gold 的第三期擴建，這將成為未來幾年大量自由現金流的驅動力。

The third quarter was a transition quarter at the Magino mine as we implemented a number of improvements and advanced the integration of the operation with Island Gold. The combination of the 2 mines is expected to create one of Canada's largest lowest cost and most profitable gold mines with significant long-term upside opportunities. This includes a centralized mill that can be expanded to support the significant exploration potential across the Island Gold district. In July, we provided a comprehensive exploration update at Island Gold, highlighting the potential. Based on our ongoing exploration success at Island Gold, we expect high-grade reserves to expand and the resource to increase for the ninth consecutive year.

第三季度是 Magino 礦場的過渡季度，我們實施了多項改進，並推進了與 Island Gold 業務的整合。預計這兩個礦山的合併將創建加拿大最大的成本最低、利潤最高的金礦之一，並具有重大的長期上升機會。其中包括一個可以擴展的集中式工廠，以支持整個島嶼金礦區的巨大勘探潛力。 7 月，我們提供了 Isl​​and Gold 的全面勘探更新，強調了其潛力。基於我們在 Island Gold 的持續勘探成功，我們預計高品位儲量將擴大，資源量將連續第九年增加。

We are also defining opportunities to expand the Magino open pit and other near-mine targets like the North Shear, which could serve as a source of additional mill feed within an expanded mill.

我們還正在確定擴大馬吉諾露天礦和其他近礦目標（例如北剪切機）的機會，這些目標可以作為擴建後的工廠內額外的工廠飼料來源。

In September, we announced the development plan for PDA outlining an attractive low-cost, high-return underground project that is expected to triple the mine life of the Mulatos district to at least 2035, given the significant exploration upside at PDA and the nearby Cerro Pelon target, we see excellent potential to further extend the mine life and improve already robust economics. Scott will delve into the details of the upside potential later in this call.

9 月，我們宣布了PDA 的開發計劃，概述了一個有吸引力的低成本、高回報的地下項目，鑑於PDA 和附近的Cerro 的巨大勘探潛力，預計該項目將使Mulatos 地區的礦山壽命延長兩倍，至少到2035 年Pelon 目標，我們看到了進一步延長礦山壽命和改善本已強勁的經濟效益的巨大潛力。斯科特將在本次電話會議稍後深入探討上行潛力的細節。

We were also recognized as a top performer by the Toronto Stock Exchange with inclusion into the TSX30, reflecting a 134% increase in our share price over the trailing three-year period. Given the number of catalysts we have coming up over the next year, we expect this strong performance to continue. This includes ongoing exploration updates, a Burnt Timber & Linkwood Study later this year. And our mineral Reserve & Resource update early next year. This will be followed by an updated mine plan for the Island Gold District mid-2025 and a larger mill expansion study outlining upside scenarios for the district later in the year.

我們也被多倫多證券交易所評為表現最佳企業，並納入 TSX30 指數，反映出我們的股價在過去三年內上漲了 134%。考慮到明年我們將出現的催化劑數量，我們預計這種強勁表現將持續下去。這包括正在進行的勘探更新，以及今年稍後的燒毀木材和林克伍德研究。明年初我們的礦產儲量和資源更新。隨後將在 2025 年中期更新島嶼黃金區的採礦計劃，並在今年稍後進行更大規模的工廠擴建研究，概述該地區的上行前景。

Turning to Slide 5. The addition of Magino complements our strength -- pardon me, our strong growth profile and has opened up longer-term upside opportunities. As outlined in our three-year guidance in September, Magino has increased our production rate by approximately 20% to 600,000 ounces per year. Our all-in sustaining costs have also increased approximately 11% but remain well below the industry average and are expected to decrease by more than 10% over the next several years.

轉向幻燈片 5。正如我們在 9 月的三年指導中所述，Magino 將我們的產量提高了約 20%，達到每年 60 萬盎司。我們的整體維持成本也增加了約 11%，但仍遠低於行業平均水平，預計未來幾年將下降 10% 以上。

In 2026, completion of the Phase III expansion is expected to push our annual production rate close to 700,000 ounces of gold per year and decrease our all-in sustaining costs to $1,150 per ounce. Lynn Lake is expected to provide additional growth and takes us to a longer-term rate of 900,000 ounces per year, while helping to drive all-in sustaining costs below $1,100 per ounce. All of this growth is fully funded and all of this growth is lower cost. What is not illustrated in this graph is the potential to further expand the Magino mill to between 15,000 and 20,000 tonnes per day, which could support additional growth and take consolidated production closer to 1 million ounces per year.

到 2026 年，第三期擴建的完成預計將使我們的黃金年產量接近 70 萬盎司，並將我們的整體維持成本降低至每盎司 1,150 美元。 Lynn Lake 預計將帶來額外的成長，使我們的長期產量達到每年 90 萬盎司，同時有助於將整體維持成本降至每盎司 1,100 美元以下。所有這些增長都是得到充分資助的，而且所有這些增長的成本都較低。這張圖表中沒有說明的是，Magino 工廠有可能進一步將產量擴大到每天 15,000 至 20,000 噸，這可以支持進一步的增長並使綜合產量接近每年 100 萬盎司。

I'll now turn the call over to our CFO, Greg Fisher, who will review our financial performance. Greg?

我現在將把電話轉給我們的財務長 Greg Fisher，他將審查我們的財務表現。格雷格？

Thank you, John. On to Slide 6, we sold a record 145,200 ounces of gold in the third quarter at an average realized price of $2,458 per ounce for record quarterly revenue of $361 million. Our gold sales were approximately 4% lower than production in the quarter due to timing with the sale of these ounces to benefit future quarters. Total cash cost of $984 per ounce and all-in sustaining cost of $1,425 per ounce were both up from earlier in the year, reflecting the inclusion of higher cost production from Magino.

謝謝你，約翰。在投影片 6 上，我們在第三季以每盎司 2,458 美元的平均實現價格售出了創紀錄的 145,200 盎司黃金，創紀錄的季度收入為 3.61 億美元。我們本季的黃金銷售量比產量低約 4%，因為出售這些盎司的時機是為了使未來幾季受益。每盎司的總現金成本為 984 美元，總維持成本為每盎司 1,425 美元，均較今年稍早上升，反映出 Magino 生產成本較高。

All-in sustaining costs were also impacted by higher stock-based compensation driven by the increase in the share price during the quarter. Excluding Magino, our total cash cost for the quarter would have been $118 per ounce lower and all-in sustaining cost of $184 per ounce lower. We expect our consolidated cost to decrease in the fourth quarter, reflecting a significant improvement from Magino. Given our strong year-to-date performance with costs well within the range of guidance, we remain on track to meet our full year cost guidance. With the closing of the Argonaut acquisition on July 12, it was a complex quarter from a financial perspective.

本季股價上漲導致股票薪酬上漲，也影響了整體維持成本。如果不包括 Magino，我們本季的總現金成本將降低 118 美元/盎司，總維持成本將降低 184 美元/盎司。我們預計第四季度的綜合成本將下降，反映出 Magino 的顯著改善。鑑於我們今年迄今的強勁業績以及成本遠在指導範圍內，我們仍有望實現全年成本指引。隨著 Argonaut 收購於 7 月 12 日完成，從財務角度來看，這是一個複雜的季度。

This included a number of nonrecurring items related to the transaction and retirement of Argonaut debt and near-term gold hedges.

其中包括與 Argonaut 債務交易和報廢以及近期黃金對沖相關的一些非經常性項目。

As part of the acquisition, we inherited 330,000 ounces of gold forward sales contracts between 2024 and 2027, hedged by Argonaut at prices ranging from $1,821 to $1,860 per ounce. In July, we completed a gold sale prepayment agreement for the delivery of 49,400 ounces in 2025 and used the proceeds of $116 million received to eliminate all of the Argonaut hedges in 2024 and 2025, which totaled 180,000 ounces. This eliminated more than half the hedge book and has provided us with significantly higher exposure to rising gold prices. We continue to review opportunities to eliminate the remainder of Argonaut's hedge book which is comprised of gold forward contracts totaling 150,000 ounces in 2026 and 2027.

作為收購的一部分，我們繼承了 2024 年至 2027 年期間的 330,000 盎司黃金遠期銷售合約，由 Argonaut 以每盎司 1,821 美元至 1,860 美元的價格進行對沖。 7月，我們完成了2025年交割49,400盎司的黃金銷售預付款協議，並使用收到的1.16億美元收益消除了2024年和2025年的所有Argonaut對沖，總計180,000盎司。這消除了一半以上的對沖帳簿，並為我們提供了顯著更高的金價上漲風險敞口。我們將繼續審查消除 Argonaut 剩餘對沖帳簿的機會，該帳簿由 2026 年和 2027 年總計 150,000 盎司的黃金遠期合約組成。

Our reported net earnings of $85 million or $0.20 per share, including an impairment reversal of Young-Davidson of $39 million net of taxes, unrealized losses on hedge derivatives of $21 million net of taxes, unrealized foreign exchange losses of $2 million and other adjustments net of taxes totaling $9 million. Excluding these items, our adjusted net earnings were $78 million or $0.19 per share. Operating cash flow before changes in noncash working capital increased to a record $193 million or $0.46 per share. Free cash flow totaled $88 million in the quarter, excluding $29 million of onetime payments related to the Argonaut acquisition, including transaction costs and overdue payables incurred by Argonaut, but paid by almost post close.

我們報告的淨利潤為8,500 萬美元，即每股0.20 美元，包括Young-Davidson 減損撥回3,500 萬美元（稅後淨額）、未實現對沖衍生性商品損失2,100 萬美元（稅後淨額） 、未實現外匯損失200 萬美元以及其他調整淨額稅收總額為 900 萬美元。排除這些項目，我們調整後的淨利潤為 7800 萬美元，即每股 0.19 美元。非現金營運資本變動前的營運現金流增至創紀錄的 1.93 億美元，即每股 0.46 美元。本季自由現金流總計 8,800 萬美元，不包括與 Argonaut 收購相關的 2,900 萬美元一次性付款，包括 Argonaut 產生的交易成本和逾期應付帳款，但幾乎在交易完成後支付。

Year-to-date, we have generated $219 million of free cash flow while continuing to invest in high-return growth. This strong performance has been led by the Mulatos district with mine-site free cash flow of $187 million year-to-date and Young-Davidson, which is on track to generate record free cash flow of more than $100 million. Capital spending, including equipment lease payments, totaled $112 million in the quarter and included $38 million of sustaining capital and $68 million of growth capital, the majority of which was focused on the Phase 3+ expansion.

年初至今，我們已產生 2.19 億美元的自由現金流，同時繼續投資於高回報成長。這一強勁表現由 Mulatos 區和 Young-Davidson 區引領，該區今年迄今的礦場自由現金流為 1.87 億美元，而 Young-Davidson 預計將創造超過 1 億美元的創紀錄自由現金流。本季資本支出（包括設備租賃付款）總計 1.12 億美元，其中包括 3,800 萬美元的維持資本和 6,800 萬美元的成長資本，其中大部分集中在第 3 階段及以上的擴張。

Our cash balance declined slightly quarter-over-quarter to $292 million, reflecting onetime costs related to the Argonaut acquisition as well as the repayment of Argonaut debt. In total, we repaid all $308 million of debt inherited from Argonaut using the existing cash and by withdrawing $250 million from our credit facility on much more attractive terms. With a strong cash position, more than $540 million of total liquidity and solid ongoing free cash flow generation, we remain well positioned to fund our high-return growth initiatives.

我們的現金餘額環比略有下降，至 2.92 億美元，反映了與收購 Argonaut 相關的一次性成本以及償還 Argonaut 債務。總的來說，我們使用現有現金償還了從 Argonaut 繼承的全部 3.08 億美元債務，並以更具吸引力的條件從我們的信貸額度中提取了 2.5 億美元。憑藉強勁的現金狀況、超過 5.4 億美元的總流動性以及穩定的持續自由現金流生成，我們仍然有能力為我們的高回報成長計畫提供資金。

With now -- I will now turn the call over to our COO, Luc Guimond to provide an overview of the operations.

現在，我將把電話轉給我們的營運長 Luc Guimond，以提供營運概況。

Thank you, Greg. Moving to Slide 7. Young-Davidson produced 44,200 ounces in the quarter, a slight increase over the previous quarter with all-in sustaining costs coming in above the top end of the annual guidance range. Mining rates were impacted by lower scoop availability as well as reduced paste availability during the mill downtime in July for a planned liner change and other maintenance. The lower mining rates impacted access to higher-grade stopes, which have been deferred into the fourth quarter.

謝謝你，格雷格。轉到幻燈片 7。採礦率受到鏟鬥可用性降低以及 7 月工廠因計劃更換襯板和其他維護而停機期間膏體可用性減少的影響。較低的採礦率影響了進入更高品位採場的機會，這些開採已被推遲到第四季度。

Mining and milling rates improved in August and September, and we're back to guided levels of 8,000 tonnes per day by the end of the quarter.

8 月和 9 月的採礦和銑削率有所提高，到本季末我們將恢復到每天 8,000 噸的指導水準。

We expect higher mining rates and grades to drive production higher and cost lower in the fourth quarter. Young-Davidson continues to be a significant free cash flow generator, delivering $36 million in the quarter and $91 million year-to-date. The operation is on track to deliver record free cash flow and more than $100 million for the fourth consecutive year.

我們預計第四季度採礦率和品位的提高將推動產量提高和成本降低。 Young-Davidson 仍然是重要的自由現金流產生者，本季交付 3,600 萬美元，年初至今交付 9,100 萬美元。該業務預計將連續第四年創造創紀錄的自由現金流並超過 1 億美元。

Over to slide 8. Island Gold produced 40,500 ounces in the quarter at cost consistent with annual guidance, a solid performance with significantly higher grades offsetting lower mining rates. Mining rates were impacted by scheduled downtime in July to operate the underground ventilation infrastructure. The ventilation upgrade was completed on schedule. However, the ramp-up of mining rates post completion took longer than anticipated.

轉到幻燈片 8。採礦率受到 7 月預定的地下通風基礎設施運作停工的影響。通風升級改造已按計畫完成。然而，完成後採礦率的上升所花費的時間比預期的要長。

Mining rates were back at planned levels by the end of August, an increase to average 1,200 tonnes per day in September and October, where they are expected to remain through the fourth quarter.

到 8 月底，採礦率恢復到計劃水平，9 月和 10 月平均每天開採 1,200 噸，預計第四季度將保持這一水平。

Grades increased to an impressive 14.6 grams per tonne, reflecting the increased contribution of higher-grade stopes from the 1025 mining horizon and positive grade reconciliation. With money rates increasing in the fourth quarter, grades are expected to return to guided levels. Given the strong year-to-date performance, Island Gold is well positioned to achieve its full year production and cost guidance. The operation generated positive mine site free cash flow for the second consecutive quarter while continuing to fund the Phase 3+ expansion. At current gold prices, we expect Island Gold to continue self-funding all of the capital for the expansion, which will be a driver of significant free cash flow growth once completed in 2026.

品位增加至令人印象深刻的 14.6 克/噸，反映出 1025 採礦層位中較高品位採場的貢獻增加以及積極的品位調節。隨著第四季貨幣利率的上升，預計成績將恢復至指導水準。鑑於今年迄今的強勁表現，Island Gold 完全有能力實現全年產量和成本指引。該業務連續第二季產生正的礦場自由現金流，同時繼續為三期以上擴建提供資金。以目前的金價，我們預期 Island Gold 將繼續自籌所有資本用於擴張，一旦 2026 年完成，這將成為自由現金流顯著成長的驅動力。

Over to Slide 9. We closed the acquisition of Argonaut Gold on July 12, and the integration of the Magino and Island Gold Mines is well underway. Magino produced 16,800 ounces in the third quarter, down from the previous quarter, reflecting the partial reporting period as well as downtime to implement various improvements to the crushing circuit, including replacement of the secondary crusher. Given the downtime and buildup of stockpiles, mining activities were focused on waste stripping, which will benefit future quarters. Mill throughput averaged 6,900 tonnes per day in the quarter, but increased to 8,900 tonnes per day in September.

前往幻燈片 9。 Magino 第三季產量為 16,800 盎司，較上一季下降，反映了部分報告期以及對破碎迴路實施各種改進（包括更換二級破碎機）的停機時間。考慮到停工和庫存積累，採礦活動主要集中在廢物剝離上，這將有利於未來幾季。本季工廠平均吞吐量為 6,900 噸/天，但 9 月增加至每天 8,900 噸。

Milling rates are expected to increase in the fourth quarter, following the completion of additional mill optimization initiatives including replacement at the grizzly and primary crusher. These improvements are expected to support higher throughput rates of 11,200 tonnes per day in 2025, sufficient to process ore from both Magino and Island Gold. Increased milling rates and grades are expected to drive production higher and cost lower in the fourth quarter. Ahead of the planned transition to a single optimized mill within the Island Gold district in 2025, 5,700 tonnes of lower-grade Island Gold Ore was blended with Magino ore and processed through the Magino mill. The batch test was successful with recoveries from Island Gold ore consistent with expectations and annual guidance of 97%.

在完成額外的磨機優化計劃（包括更換格篩和初級破碎機）後，預計第四季度的磨粉率將會增加。這些改進預計將在 2025 年支援每天 11,200 噸的更高吞吐量，足以加工 Magino 和 Island Gold 的礦石。銑削率和等級的提高預計將推動第四季度的產量提高和成本降低。在計劃於 2025 年過渡到 Island Gold 區內的單一優化工廠之前，5,700 噸低品位 Island Gold 礦石與 Magino 礦石混合併通過 Magino 工廠進行加工。批量測試取得成功，島金礦石的回收率符合預期，年度指引值為 97%。

Furthermore, recoveries from Magino ore continued to exceed expectations, averaging 95% in the quarter, driven by the strong performance from the gravity circuit. With the upgrades to the crushing circuit expected to be completed by year-end, we are on track to begin processing Island Gold ore to the significantly larger and more cost-effective Magino mill in early 2025.

此外，在重力迴路強勁表現的推動下，馬吉諾礦石的回收率持續超出預期，本季平均回收率為 95%。隨著破碎線路的升級預計將於年底完成，我們預計將在 2025 年初開始在規模更大、更具成本效益的 Magino 磨機中加工 Island 金礦石。

Moving to Slide 10. Work on the Phase 3+ expansion continues to advance, including good progress on the shaft sinking. The shaft is currently at a depth of 812 meters, double the 400-meter depth at the end of the second quarter and more than halfway towards ultimate planned depth of 1,373 meters. The bin house foundation has been completed and erection of the bin house is ongoing.

轉到投影片 10。該豎井目前的深度為 812 米，是第二季末 400 公尺深度的兩倍，也是最終計畫深度 1,373 公尺的一半以上。垃圾箱地基已經完成，垃圾箱的安裝正在進行中。

Paste plant construction activities are ramping up with detailed engineering and earthworks complete and foundations more than 50% complete.

漿料廠建設活動正在加緊進行，詳細工程和土方工程已完成，地基已完成 50% 以上。

Construction on the haul road to the Magino mill is underway and expected to be completed by year-end.

通往馬吉諾工廠的運輸道路正在建設中，預計將於年底完工。

In addition, detailed engineering is advancing on the Magino mill expansion to 12,400 tonnes per day, which is expected to be completed in mid 2026 to coincide with the completion of the Phase 3+ Expansion.

此外，Magino 工廠擴建至日產量 12,400 噸的詳細工程正在進行中，預計將於 2026 年中期完成，與第 3 階段及以上擴建工程同時完成。

Over to Slide 11. In September, we updated our initial capital estimate for the Phase 3+ Expansion to incorporate the addition of Magino. Overall, initial capital has increased by 5% to $796 million from the initial estimate announced in the first half of 2022. This reflects ongoing inflationary pressures and scope changes to the project, which were largely offset by synergies from the Magino acquisition as well as the weaker Canadian dollar.

轉到投影片 11。9 月，我們更新了第 3 階段及以上擴建的初始資本估算，以納入 Magino 的增加。總體而言，初始資本較 2022 年上半年宣布的初步估計增加了 5%，達到 7.96 億美元。加幣走弱。

we are well past the halfway point on the project with approximately 62% of the total initial capital of $796 million having been spent and committed at the end of the third quarter. The Phase 3+ Expansion remains on track for completion in the first half of 2026 and will be a significant driver of our expected production growth and declining costs over the next several years.

該項目已遠遠超過一半，初始資本總額 7.96 億美元的約 62% 已在第三季末支出和承諾。 3+ 期擴建預計將於 2026 年上半年完成，並將成為我們未來幾年預期產量成長和成本下降的重要推動力。

Over to Slide 12. The Mulatos District delivered another excellent quarter with production of 50,500 ounces, a slight decrease over the previous quarter as both tonnes and grade stacked at La Yaqui Grande declined as expected. Production is expected to decrease further in the fourth quarter with grades stacked towards the lower end of guidance.

轉到幻燈片 12。預計第四季產量將進一步下降，品級將接近指引值的下限。

Reflecting the strong year-to-date performance of La Yaqui Grande, Mulatos District production was increased -- Mulatos production guidance was increased by 15% in September between 185,000 and 195,000 ounces. The operation is well-positioned to achieve the increased production guidance as well as its cost guidance for the year. With another strong operational performance, Mulatos District delivered $67 million of mine site free cash flow in the quarter. and an impressive $187 million year-to-date, net of $75 million of cash tax payments.

Mulatos 地區產量有所增加，反映了 La Yaqui Grande 今年迄今的強勁表現——9 月份 Mulatos 產量指導值增加了 15%，在 185,000 至 195,000 盎司之間。該業務處於有利地位，可以實現今年產量指導和成本指導的增加。穆拉托斯區憑藉另一項強勁的營運業績，本季礦場自由現金流達到 6,700 萬美元。年初至今，扣除 7,500 萬美元的現金稅款，收入達到了令人印象深刻的 1.87 億美元。

Over to Slide 13. In September, we announced the PDA development plan outlining an attractive high-return project that is expected to triple the mine life of the Mulatos District to at least 2035. At a $2,500 per ounce gold price, PDA has an after-tax debt present value of nearly $500 million and an internal rate of return of 73%. PDA is expected to produce 127,000 ounces per year over the first 4 years and 104,000 ounces per year over the current 8-year mine life. The project has a low-cost profile with all-in sustaining costs of $1,000 per ounce and low initial capital of $165 million, which can be funded from Mulatos District free cash flow generation.

轉到幻燈片13。9 月，我們宣布了PDA 開發計劃，概述了一個有吸引力的高回報項目，該項目預計將使Mulatos 區的礦山壽命延長兩倍，至少達到2035 年。美元的黃金價格計算，PDA 有後續項目-稅債現值近5億美元，內部報酬率73%。 PDA 預計在前 4 年每年生產 127,000 盎司，在目前 8 年礦山壽命中每年生產 104,000 盎司。該項目成本低廉，總維持成本為每盎司 1,000 美元，初始資本為 1.65 億美元，可由 Mulatos 區自由現金流生成提供資金。

We expect to start development next year, which would put first production as early as mid 2027. There is also excellent exploration upside in the district that could extend the mine life further and enhance the project's already robust economics. I will now turn the call over to our VP of Exploration, Scott Parsons, to review the exploration success we are having in the Mulatos District.

我們預計明年開始開發，最快將於 2027 年年中首次投產。現在，我將把電話轉給我們的勘探副總裁 Scott Parsons，回顧我們在穆拉托斯地區的勘探成功。

Thank you, Luc. Moving to Slide 14. Over the past 2 years, mineral reserves of PDA have more than doubled to 1 million ounces with grades also increasing 20% to 5.6 grams per tonne. This growth to the end of 2023 was incorporated into the PDA development plan. As outlined in our exploration update in early September, we see excellent potential for the growth in higher grade mineral reserves and resources to continue at PDA and other targets like Cerro Pelon.

謝謝你，呂克。轉到投影片 14。這一到2023年底的成長被納入PDA發展計畫。正如我們在 9 月初的勘探更新中所概述的，我們看到 PDA 和 Cerro Pelon 等其他目標的高品位礦產儲量和資源繼續增長的巨大潛力。

At PDA, we continue to extend high-grade mineralization beyond existing mineral reserves and resources within a relatively untested area between the PDA zones and Gap Victor. This included multiple high-grade intervals such as 5.4 grams per tonne over 18 meters and 23.6 grams per tonne over 3 meters. Given our ongoing success of PDA and with the deposit open in multiple directions, we expect its mineral reserve and resource base to continue to grow, which represents upside to the PDA development plan. The addition of a mill to process higher-grade sulfide has also opened up other opportunities for growth within the district. One opportunity is Cerro Pelon, an open pit mine, we successfully operated between 2019 and 2021.

在 PDA，我們繼續在 PDA 區和 Gap Victor 之間相對未經測試的區域內，將高品位礦化範圍擴展到現有礦產儲量和資源之外。其中包括多個高品位區間，例如 18 公尺以上每噸 5.4 克和 3 公尺以上每噸 23.6 克。鑑於我們 PDA 的持續成功以及礦床向多個方向開放，我們預計其礦產儲量和資源基礎將繼續增長，這代表了 PDA 開發計劃的上行空間。增設一座加工高品位硫化物的工廠也為該地區的發展帶來了其他機會。其中一個機會是 Cerro Pelon，這是一座露天礦，我們在 2019 年至 2021 年間成功運作。

Historically, high-grade mineralization was intersected below the pit that was not followed up on. Now that we'll be constructing a mill, we are targeting and successfully expanding high-grade mineralization within multiple oxide and sulfide zones at Cerro Pelon. Step-out drilling below the open pit has identified high-grade feeder structures that range in size from 45 to 125 meters in width and up to 170 meters vertically. Some of the highlights of Cerro Pelon includes 5.5 grams per tonne over 28 meters, 12.5 grams per tonne over 6.5 meters and 4.8 grams per tonne over 15.8 meters. We expect this success to support initial underground mineral resource at Cerro Pelon with the year-end update.

從歷史上看，高品位礦化體在礦坑下方交叉，但沒有進行後續處理。現在我們將建造一座磨礦廠，我們的目標是在 Cerro Pelon 的多個氧化物和硫化物區域內成功擴大高品位礦化。露天礦坑下方的步出鑽探已發現高品位支線結構，其尺寸範圍為寬度 45 至 125 米，垂直高度可達 170 米。 Cerro Pelon 的一些亮點包括 28 公尺以上每噸 5.5 克、6.5 公尺以上每噸 12.5 克以及 15.8 公尺以上每噸 4.8 克。我們預計這項成功將透過年底更新為 Cerro Pelon 的初始地下礦產資源提供支援。

With Cerro Pelon well within trucking distance of the planned PDA mill, we will ultimately look to utilize this as an additional source of high-grade mill feed. Cerro Pelon represents an opportunity to not only extend the mine life of the PDA project, but also sustain higher rates of production well beyond the first 4 years.

由於 Cerro Pelon 距離計劃中的 PDA 工廠很近，我們最終將利用其作為高品位工廠飼料的額外來源。 Cerro Pelon 不僅可以延長 PDA 專案的礦場壽命，而且可以在前 4 年後維持較高的生產力。

Over to Slide 15. In July, we announced one of the best exploration updates to date at Island Gold, reflecting the number of high-grade intercepts across the deposit. To reiterate some of these exceptional results we are seeing, this included 37 grams per tonne over 7 meters in Island West and 17 grams per tonne over 10 meters in Island East. We are also seeing significantly higher grade results from our delineation drilling program in the lower part of Island East, including 102 grams per tonne over 17 meters and 135 grams per tonne over 8 meters. Since we acquired Island Gold in 2017, we've added more than 5 million ounces of high-grade mineral reserves and resources, which currently totals 6.1 million ounces.

轉到幻燈片 15。7 月，我們宣布了 Isl​​​​and Gold 迄今為止最好的勘探更新之一，反映了整個礦床的高品位截獲數量。為了重申我們所看到的一些非凡成果，其中包括島西 7 公尺以上每噸 37 克，島東 10 公尺以上每噸 17 克。我們也看到島東下部的探邊鑽探計畫的品位顯著提高，包括 17 公尺以上每噸 102 克和 8 公尺以上每噸 135 克。自 2017 年收購 Island Gold 以來，我們已增加了超過 500 萬盎司的高品位礦產儲量和資源，目前總計 610 萬盎司。

We've also seen reserve grades increase 12% to 10.3 grams per tonne and inferred grade increased 43% to nearly 15 grams per tonne. Based on the success we're having in 2024, we expect another year of growth with a further increase in grades. With the deposit open laterally and down plunge and multiple high-grade zones being defined in the hanging wall and footwall, we see excellent potential for this pace of growth to continue. It's ongoing growth in Island Gold, the exploration potential we see in Magino and the near mine targets like the North Shear all support longer-term expansion opportunities of the Island Gold District that we'll be evaluating over the next year. With that, I'll turn the call back to John.

我們也發現儲備品位增加了 12%，達到每噸 10.3 克，推斷品位增加了 43%，達到每噸近 15 克。基於我們在 2024 年的成功，我們預計又一個增長年，成績將進一步提高。隨著礦床橫向開放和下傾，以及上盤和下盤界定的多個高品位區域，我們看到了繼續這種增長速度的巨大潛力。 Island Gold 的持續成長、我們在 Magino 看到的勘探潛力以及 North Shear 等附近的礦區目標都支持 Island Gold 區的長期擴張機會，我們將在明年評估這些機會。這樣，我會將電話轉回給約翰。

Thank you, Scott. We've been a strong outperformer over the past 3 years. A large part of this has been driven by the continued execution on our growth plans as well as our ability to consistently create value within our asset base through exploration success and expanding and optimizing our operations. Given the catalysts we have coming up over the next year, including a number of opportunities to continue to create value across our assets, we expect our strong performance to continue. This concludes the formal part of our presentation. I'll now turn the call back to the operator, who will open the call for your questions.

謝謝你，斯科特。過去三年來，我們一直表現出色。這在很大程度上是由我們的成長計劃的持續執行以及我們透過成功勘探以及擴大和優化我們的業務在我們的資產基礎上持續創造價值的能力所推動的。鑑於我們明年將出現的催化劑，包括繼續為我們的資產創造價值的許多機會，我們預計我們的強勁業績將繼續下去。我們演講的正式部分到此結束。我現在將把電話轉回給接線員，接線員將打開電話詢問您的問題。

(Operator Instructions)

（操作員說明）

Cosmos Chiu, CIBC.

邱宇宙，CIBC。

Maybe my first question is on Magino. Good to hear the mill at Magino was successful in processing some of the lower-grade material coming from Island Gold. My question is, when will you start potentially testing out some of the high-grade material as well?

也許我的第一個問題是關於 Magino 的。很高興聽到馬吉諾工廠成功加工了一些來自 Island Gold 的低品位材料。我的問題是，你們什麼時候開始可能會測試一些高級材料？

Yes. Cosmos, it's Luc here. Our intent is, obviously, we started with the lower grade feed with the blending process just to validate, obviously, our assumptions with regards to a blended feed and not impacting any recoveries, which we validated. In this quarter and Q4, we're actually looking to actually introduce higher-grade material. Also, again, we're not expecting any issues with regards to the blended process, but we're going to validate that from a plant perspective to validate, obviously, what we've seen from a lab perspective with regards to overall recoveries for the blended ore streams.

是的。科斯莫斯，我是路克。顯然，我們的目的是，我們從較低等級的飼料開始進行混合過程，顯然只是為了驗證我們對混合飼料的假設，並且不會影響我們驗證的任何回收率。在本季度和第四季度，我們實際上希望引入更高等級的材料。另外，我們預計混合過程不會出現任何問題，但我們將從工廠的角度進行驗證，以驗證我們從實驗室角度看到的關於整體回收率的情況。

Of course. And on that as well, you kind of touched on it in terms of 2025. But could you remind us in terms of the time line for the integration of a single milling operation I think you talked about 2025 also potentially early 2025. I'm just trying to figure out when this integrated single milling operation is going to happen? And at that point in time, would you just shut down the Island Gold, the smaller Island Gold mill?

當然。就這一點而言，您也提到了 2025 年。的單一銑削操作何時會發生？到那時，您會關閉 Island Gold 這個規模較小的 Island Gold 工廠嗎？

Yes. Yes, our plans have not changed from what we've communicated previously there, Cosmos, early 2025, we will be just running the Magino facility. So Island ore as well as Magino ore will feed into the one mill complex in early 2025. Once we start doing that, yes, the intent would be to just actually shut down the Island Gold mill and just put it on care and maintenance basically.

是的。是的，我們的計劃與我們之前在 Cosmos 溝通的內容沒有改變，2025 年初，我們將只運行 Magino 設施。因此，島嶼礦石和 Magino 礦石將在 2025 年初進入單一工廠綜合體。

And then in terms of reporting wise, I think I asked this question in the past as well, but I just want to confirm, are you going to start reporting it as a single integrated operation from an accounting perspective and guidance perspective starting in 2025?

然後在報告方面，我想我過去也問過這個問題，但我只是想確認一下，您是否會從 2025 年開始從會計角度和指導角度開始將其作為單一綜合業務進行報告？

Cosmos, this is Craig here. Yes, that's correct. We'll show it as one integrated operation. So production costs will all be shown as one integrated operation.

科斯莫斯，我是克雷格。是的，這是正確的。我們將把它展示為一個整合操作。因此，生產成本將全部表現為一項綜合業務。

Perfect. And since I have you here as well, Greg. I guess today, earnings reported earnings, adjusted earnings were slightly below Street consensus. I chalk that up to the fact that this is the quarter where you acquired Argonaut Gold. And you kind of talked about that as well. There were a number of onetime items that what I would consider accounting noise or onetime items. My question is, is this kind of like, is this it? Q3, is that it? Or could we expect any other items that we should consider into Q4 that might be related to this transaction?

完美的。既然你也在這裡，格雷格。我猜今天的財報報告的收益、調整後的收益略低於華爾街的共識。我認為這是因為您在這個季度獲得了 Argonaut Gold。你也談到了這一點。有許多一次性項目我認為是會計噪音或一次性項目。我的問題是，是這樣的嗎，是這樣嗎？ Q3、是這樣嗎？或者我們可以預期第四季度我們應該考慮與此交易相關的任何其他項目？

I mean with respect to the Argonaut acquisition, yes, I'd say we've accrued all the P&L-related costs associated with that. I mean you're always going to have the movement on share-based compensation, which we had a significant impact this quarter as the share price moves. But with respect to Argonaut, I think which is what your question was focused on, yes, we've accrued the costs associated with that acquisition and don't expect anything moving forward.

我的意思是，關於收購 Argonaut，是的，我想說我們已經提列了與此相關的所有損益相關成本。我的意思是，基於股票的薪酬總是會發生變化，隨著股價的變化，我們本季對此產生了重大影響。但關於 Argonaut，我認為這就是您的問題所關注的重點，是的，我們已經累積了與該收購相關的成本，並且預計不會有任何進展。

(Operator Instructions) There are no further questions at this time. This concludes this morning's call. If you have any further questions that have not been answered, please feel free to contact Mr. Scott Parsons at (416) 368-9932 extension 5439.

（操作員說明） 目前沒有其他問題。今天早上的電話會議到此結束。如果您還有任何尚未得到解答的問題，請隨時聯絡 Scott Parsons 先生，電話 (416) 368-9932 分機號碼 5439。