Amerigo Resources Ltd — Call Transcript 2025

Thank you, Operator. Good afternoon and welcome everyone to Amerigo Resources' quarterly conference call to discuss the company's financial results for the third quarter of 2025. We appreciate you joining us today. This call will cover Amerigo Resources' financial and operating results for the third quarter ended September 30, 2025. Following our prepared remarks, we will open the conference call to a question-and-answer session. Our call today will be led by Amerigo Resources' President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. The company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our CDAR filings. I will now hand the call over to Aurora Davidson. Please go ahead, Aurora. Thank you. Welcome to Amerigo's earnings call for the third quarter of 2025. Q3 2025 was a quarter of strong execution and resilience for Amerigo and our MVC operation in Chile. On July 31, El Teniente faced a tragic accident resulting in MVC ceasing to receive fresh tailings for 10 days. Since the accident, MVC has received lower throughput from fresh tailings than normal under the original annual budget. This condition led to a decline in monthly production in August, followed by a production recovery in September. The timely adjustments made by MVC to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine-tuning of the concentrator plant. The lower August production forced us to adjust our copper production guidance from GBP 62.9 million to a range of GBP 60 million-GBP 61.5 million. Our production results in October have been strong, and we remain confident in the revised guidance. Despite the impact of El Teniente's accident, during the third quarter, MVC maintained a high plant availability of 98% and continued to operate without lost-time accidents or environmental incidents. These metrics reflect the strength of our operational planning and the dedication of our on-the-ground team. Stable copper prices and strong MOLY contributions supported total revenue of $52.5 million in the third quarter. The LME copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in Q3, peaking at a monthly average price of $4.51 per pound in September. I will provide my comments on the copper market later in the call. Net income for the quarter was $6.7 million, with earnings per share of $0.04. The company generated operating cash flow of $12.4 million, excluding changes in working capital, and free cash flow to equity of $11.1 million. In line with the company's capital return strategy, or CRS, a quarterly dividend of CA$0.03 per share, or $3.5 million, was paid. Amerigo's quarter-end position was $28 million. MOLY production was 350,000 pounds, and MOLY prices averaged $24.11 per pound during the quarter. When looking at the cash cost metric, this resulted in a credit of $0.57 per pound, enabling MVC to post a cash cost of $1.80 per pound, which was lower than the $1.82 per pound of the second quarter and the $2.22 per pound of the first quarter. Based on these strong cash cost results, we have maintained our original annual cash cost guidance of $1.93 per pound. This guidance excludes MVC's collective bargaining costs. Amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations. Carmen will walk you through the detailed financials shortly. I want to discuss three important events that occurred in October subsequent to the end of the third quarter. On the 27th, MVC fully repaid its outstanding debt. At the end of September, this debt totaled $7.5 million. Eliminating outstanding debt was one of the objectives for this year and marked the conclusion of a transformational 10-year period for Amerigo. When the company took on $100 million in debt, it was part of a strategic decision to invest in Chile and MVC's growth. This decision laid the foundation for a long-term copper-producing operation that could navigate market cycles without diluting shareholder ownership. From the beginning, we were clear: debt should not be a permanent fixture. It was a tool, and like any good tool, it had a purpose and a timeline. Every debt repayment was a step towards greater financial strength and flexibility. Our final debt repayment affirmed the correctness of that strategic decision. It also reflects the company's resilience and commitment to shareholders. Also, on October 27th, Amerigo's board of directors increased the quarterly dividend paid to shareholders to $0.04 Canadian per share. This is a 33% increase from the prior dividend and double the initial dividend under the current CRS. This dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt. It is an important signal of the board's vision for the future because, as we mentioned from day one at the CRS, the quarterly dividend is set at a rate that is sustainable in the foreseeable future, irrespective of short-term copper price cyclicality. This is a new floor for shareholders, and as has been the case in the last four years, additional distributions will continue to be made through share buybacks and performance dividends. The final significant event I want to comment on occurred on October 22nd. On that day, MVC signed a three-year collective agreement with its main union, the Operators Union, which has 210 members. Collective agreements play a crucial role in Chile's mining industry. These agreements maintain labor peace and provide a structured framework for negotiating wages, working hours, benefits, and bonuses. The agreements must balance the strength or weakness of copper prices at the time of negotiation while ensuring access to a skilled workforce and the specific economics of the operation. We had a constructive negotiation with our workers and reached a fair agreement for both parties. Now, I will move on to our commentary on the copper market. The long-term themes of surging demand and supply constraints remain significant. A third important element that cannot be ignored is geopolitical interference in the marketplace. Let's start with the obvious: supply constraints and disruptions. A copper supply deficit between 300,000 and 500,000 tons is now forecast for this year. This has already pushed copper prices upwards, as evidenced by October's average LME price over $4.84 per pound. In addition to the trend of declining ore grades, specific mine disruptions at Grasberg, Kamoa-Kakula, and El Teniente have resulted in the loss of around 518,000 tons of copper this year. Looking beyond 2025, companies such as Antofagasta Minerals and Teck have already downgraded their 2026 copper guidance. Freeport and Ivanhoe Mines will likely do the same following physical inspections of their impacted mines. As I mentioned a minute ago, the current global copper supply has tightened, resulting in a deficit. This bottleneck is driven by copper concentrate availability, which has been affected by production shortfalls at the mines. At the same time, due to overinvestment, the world now has too many smelters to refine copper concentrates. This situation is reflected by the size and the movement of treatment and refining charges, or TCRCs. These are the fees that smelters charge miners to process copper concentrates into refined copper. Treatment charge, or TC, is the cost to process the concentrate at the smelter. Refining charge, or RC, is the cost to refine the metal from the concentrate. TCRCs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate. When TCRCs are low, miners earn more, and when they're high, smelters take a larger share. Until 2025, TCRCs were negotiated annually between major copper miners and smelters via breach terms known as a TCRC annual benchmark governed long-term contracts. There is also a spot TCRC market for short-term or one-up deals, which reflects real-time market conditions and is volatile. Smelters are currently struggling to secure feedstock, which has pushed spot TCRCs into negative territory. Despite the negative spot TCRCs, smelters have been able to survive thanks to byproduct credits from other metals in the concentrates they process, such as gold or silver. However, negative TCRCs clearly put significant financial pressure on smelters, whose business models depend on virtually continuous operation. In recognition of the financial stress imposed on smelters, Freeport, which is one of the traditional benchmark setters, has just abandoned the global TCRC benchmark model and has proposed a new floor cap contract model to protect the smelter margins. This model sets minimum and maximum TCRC levels, providing greater stability in volatile market conditions, such as the recent negative TCRC spot terms. In 2026, we may see a different landscape moving from the traditional stable benchmark-based system to floor cap models. However, we could also continue to see negative TCRCs under which, instead of miners paying smelters, smelters will pay miners. We may also see multi-year contracts instead of annual or shorter-term contracts, and a shift from TCRCs being the primary revenue source for smelters to a reliance on byproducts. In other words, one of the longest-term features of the copper market is currently under review, and this is all because of long-term stresses on copper supply, which we do not anticipate will change anytime soon. On the demand side, the global need for copper is expected to rise year on year, at least until 2035. Demand may be shifting regionally, but global total demand is not slowing. The main drivers of growth fall into two big buckets: electrification and digitalization. A few years ago, digitalization was not even discussed seriously in analysis of future copper demand. Tariffs, such as a 50% U.S. tariff on most finished and semi-finished copper products, are also affecting trade flows and regional inventory balances. Speculative trading continues, and we know it was very pronounced earlier this year, as shown by the differences between LME and COMEX copper prices. Geopolitical conflicts or their resolutions can also strengthen or weaken the U.S. dollar, which affects copper prices. Governments are now actively investing in mining companies and, in some cases, prioritizing certain projects. Political intervention, resource nationalism, and regulatory shifts will impact market behavior. All of these factors could lead to a copper market in 2026 that remains volatile but elevated. To end my macro comments, I will mention that Chile will now hold general elections shortly. The first round will be on November 16, followed by a run-up, which is usually the case, on December 14, 2025. The presidential inauguration will be on March 11, 2026. Current polls suggest that none of the candidates will get 50% or more of the votes on the first round, and that will lead the contenders to a run-up. With Janet Jara of the center-left coalition Unidad por Chile and José Antonio Cast of the Republican Party, who has a far-right stance, being the most likely candidates. In this run-up scenario, José Antonio Cast, a pro-business, pro-mining candidate, would likely win the election. I will conclude my remarks with a few comments about the continued success of our capital return strategy. Only a month ago, we reached the fourth anniversary of the CRS, which, as you know, comprises quarterly dividends, performance dividends, and share buybacks. Over the past four years, we have used the three components to return $93.7 million to shareholders. 60% of the return has come from dividends, paying a cumulative dividend of $0.51 Canadian per share, and 33% from buybacks, retiring 25.6 million shares or 14% of the shares outstanding at the start of the CRS. We recently published a video that illustrates the benefits of the CRS for shareholders. The video is on our website, and in it, we noted that on a total return to shareholders' basis, Amerigo Resources has outperformed mid-tier copper producers, copper ETFs, and copper futures since October of 2021. Total returns measure share appreciation and dividends, but they cannot capture the benefit of share buybacks, which ultimately benefits shareholders by reducing the number of shares in which dividends are paid. To better capture the effect of buybacks, we undertook another analysis. That analysis identified another powerful aspect of investing in Amerigo Resources. Buying Amerigo Resources shares is a very cost-effective way to own copper. We have shown that over the last four years, it has been cheaper to buy a pound of copper by buying Amerigo Resources shares than to buy it at the LME. In relation to a pound of copper produced by Amerigo in each CRS year, we have shown that it was extremely inexpensive to purchase a pound of copper through owning Amerigo shares. In other words, in relation to the underlying commodity, there was a clear undervaluation of Amerigo's share price, especially before the CRS was introduced. The other avenues of return provided by Amerigo, share appreciation, dividends, and buybacks, were all magnified by the positive impact of that discount on a per pound of copper produced basis. Since the CRS was launched, Amerigo's share price, and therefore the cost of its shares per pound of copper produced, has increased. This is what we wanted, and that is what investors wanted as well. Consequently, that original discount to LME copper has become smaller over time. However, even if the discount has decreased, buying Amerigo shares still remains the most cost-effective way to own a pound of copper compared to a basket of benchmarks. Our analysis also showed that, in all cases except Amerigo, investors in the benchmark companies have been purchasing one pound of copper at a premium to LME copper prices. In other words, controlling a pound of copper through holding other shares in the benchmark has a higher cost than the LME copper price. For investors seeking maximum exposure to copper per investment dollar, this outcome is crucial. It shows that Amerigo is a here-and-now copper play. In Amerigo, you are not paying for future growth or for investing in other metals. When buying shares of Amerigo, you have not been paying the high earnings multiple that is expected for growth stocks. You are controlling a pound of copper as cheaply as possible and more effectively than peers and copper itself. To conclude, Amerigo's returns over the four years of the CRS have come in four flavors: share appreciation, dividends, buybacks, and a discount to the LME copper price. As share appreciation has increased, the discount has decreased. Dividends and buybacks have fueled this performance. Amerigo's CRS has been a game changer for shareholders, outperforming other copper investments. This has occurred on a total return per share and on a per pound of copper basis. Amerigo rewards shareholders with predictable, consistent dividends, performance dividends when copper prices rise, no dilution, and the most efficient way to control a pound of copper. We are now debt-free. We look forward to many more years of success for the company and its shareholders. Amerigo's CFO, Carmen Amezquita, will now discuss the company's financial results. Carmen, please go ahead. Thanks, Aurora. I'm pleased to present the financial report for the third quarter of 2025 from Amerigo and its MVC operation in Chile. During the three months ended September 30, 2025, the company posted a net income of $6.7 million, earnings per share of $0.04 or CAD 0.06, and EBITDA of $18.7 million. The increase in net income to $6.7 million compared to $2.8 million in Q3 2024 was a result of stronger fair value adjustments to copper revenue receivables and lower smelting and refining charges in response to the 2025 annual benchmark terms. Specifically, in this third quarter, there were $1.3 million in positive fair value adjustments compared to $2.7 million in negative fair value adjustments in Q3 2024, and smelting and refining charges decreased by $3 million. Revenue in Q3 was $52.5 million compared to $45.4 million in Q3 2024. This included copper tolling revenue of $44.1 million and molybdenum revenue of $8.3 million. In Q3 2025, the gross value of copper tolled on behalf of DET was $67.2 million. From this gross revenue, we deducted notional items, including DET royalties of $20.6 million, smelting and refining of $3.4 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $1.3 million. Revenue also included molybdenum revenue of $8.3 million. We reported a provisional copper price of $4.54 per pound on our Q3 2025 sales. This provisional price includes mark-to-market adjustments based on the LME price curve as of September 30. The final settlement prices for July, August, and September 2025 sales will be the average LME prices for October, November, and December 2025, respectively. A 10% increase or decrease from the $4.54 per pound provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4 2025 regarding Q3 2025 production. Tolling and production costs increased 4% from $38.1 million in Q3 2024 to $39.5 million in Q3 2025. The most significant cost variances between the two quarters included an increase in lime costs of $0.8 million, as more lime consumption is in line with more historic tailings processing. Increased inventory adjustments of $0.5 million from more copper delivered than produced during the quarter. An increase in DET moly royalties of $1.3 million was the result of stronger prices and production during the quarter. The gross profit after revenue and production costs was $13 million compared to $7.4 million in Q3 2024, a $5.6 million increase. General and administrative expenses were $1.2 million compared to $0.9 million in the prior year quarter. These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.4 million, and share-based payments of $0.2 million. Other losses were $0.6 million compared to other gains of $0.6 million in the third quarter of 2024, which were driven mainly by foreign exchange fluctuations. Finance expense was $0.3 million, down from $0.9 million, with the difference driven by lower interest expense from a lower loan balance in Q3 2025, as well as a $0.3 million expense in Q3 2024 related to the fair value of interest rate swaps. Income tax expense was $4.5 million compared to $3.3 million in Q3 2024. Included in the income tax expense in Q3 2025 is $4.9 million in current tax expense and $0.4 million in deferred income tax recovery. Deferred income tax is an accounting figure used to reconcile timing differences and, in Amerigo's case, primarily arises from the differences in timing of financial and tax depreciation. Current tax expense in Q3 2025 was $4.9 million compared to $4.4 million in Q3 2024. Before moving on to the statement of financial position, I want to mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. In Q3 2025, Amerigo's cash cost was $1.80 per pound, decreasing from $1.93 per pound in Q3 2024, with the reduction primarily coming from a $0.16 per pound decrease in smelting and refining charges and an increase of $0.25 per pound in moly byproduct credits, offset by increases of $0.07 per pound in power costs, $0.07 per pound in lime costs, $0.04 per pound in maintenance, and $0.03 per pound in other direct costs. Total cost increased to $3.71 per pound, up $0.17 from Q3 2024's $3.54 per pound. This was the result of an increase of $0.27 per pound in DET notional royalties as a result of higher copper prices and $0.03 per pound in depreciation, offset by a decrease of $0.13 per pound in cash cost. All-in sustaining costs increased to $3.85 per pound from $3.72 per pound in Q3 2024 due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate G&A expenses, offset by a decrease of $0.06 in sustaining CapEx. Moving on to the statement of financial position. On September 30, 2025, the company held cash and cash equivalents of $28 million and restricted cash of $3.1 million, with a working capital of $0.9 million, up from a working capital deficiency of $6.5 million on December 31, 2024. Trade and accounts payable decreased from $24.6 million as of December 31, 2024, to $20.2 million at the end of September 2025. Current income tax liabilities decreased from $8.5 million at the end of December to $0.1 million at September 30, 2025, due mostly to the $8 million in taxes related to 2024 that were paid at the end of April when MVC's annual tax declaration was filed in Chile. For 2025, MVC's income tax at the end of September is almost fully offset by the $5.1 million in monthly tax installment payments made by MVC during the year. You will notice that the company's debt was shown as $7.3 million net of transaction fees. This debt was fully paid in October. This puts Amerigo in a zero debt position, providing additional free cash flow capacity. Regarding cash flows during the quarter, Amerigo generated $12.4 million in cash flow from operations. Net operating cash flow, which includes the changes in non-cash working capital, was $11.8 million. In terms of cash during the quarter, $1.3 million was used for investing activities, in other words, for CapEx payments, and $5.7 million was used in financing activities. These financing activities included Amerigo's quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash, which was used to pay the debt in October, leaving the company with a nil balance in restricted cash going forward. Briefly touching on the results for the first three quarters of the year, our cash cost for the nine months ended September 30, 2025, was $1.93 per pound and was in line with guidance. Our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. Our normalized cash cost guidance excludes the signing bonus paid in Q4 in connection with MVC's three-year collective labor agreement with the operators' union. The agreement will be effective until October 29, 2028, and MVC will pay $4 million to its operators in Q4 2025 as a signing bonus. In 2025, MVC is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustaining CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. In the first three quarters of 2025, CapEx additions were $7.8 million and CapEx payments were $9.5 million. We currently expect actual CapEx to trend slightly below our annual CapEx guidance. We will report Amerigo's full year 2025 financial results in February 2026 and want to thank you for your continued interest in the company. We will now take questions from call participants. Operator, can you start on the Q&A? Yes, sorry. I must have been on mute. Sorry about that. The Q&A will begin now, and your first question will be coming from Dale Miller, an investor. Dale, please go ahead. Hi, Aurora. I think you and your team have done an outstanding job, both from the miners all the way through your organization. However, I do have one minor question. I am surprised that the board of directors has been selling actively, stocks as opposed to buying stocks. Now, I know you can't explain why they're selling in particular. The picture ahead seems very rosy with the debt being paid down to zero, three-year agreement, and copper prices on a trend upward. I don't understand the lack of interest in buying your stock from the board of directors. Thank you. Again, thank you for your total organization and your efforts. Dale, thank you for your question. It is a good question. You mentioned that there are directors selling. We have indications of two of seven directors with sale transactions this year. Just to complete the picture here, five directors have not sold anything. In fact, most of the directors, when we acquire additional shares through the exercise of In the Money options, we're holders of those shares and we keep them. If there are individual sale events from independent directors, they have their own personal reasons to do so, and it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company. There was one significant transaction by a longtime director that has been. A thorough supporter of the company through thick and skin, and he had some sales to make for personal reasons. In the process of being a decade or longer director, there may be times when you have to sell shares. I wouldn't take it out of context. I wouldn't misinterpret it as a sign of a misalignment or lack of interest in the company. There are personal requirements for either tax planning or estate planning or diversification that come through from time to time, and we have to acknowledge them. In overall terms, when you're looking at the overall picture, there is obviously a keen interest in directors, including myself and including the founder of a company, Dr. Steinkrug, to hold on to our shares for the long term. We are happy recipients of the CRS benefits as well. I hope that answers the question. Yes, thank you. Thank you. Your next question comes from Terry Fisher with CIBC. Please go ahead. Yes, congratulations again on another terrific quarter, particularly given the problems at El Teniente. I guess we're getting used to that now. It's almost boring, these wonderful quarters that keep coming out. I hope you're not building expectations too high. We're very happy. Anyway, I only have two quick ones for you. Number one, MOLY's becoming even more important these days, and it's been notoriously volatile over the years. I'm wondering if you could give us a little bit of color on the MOLY outlook for the MOLY market. My other question, I'm just going to table both questions, is that I heard, and I can't remember the source, that Codelco is looking at maybe under some pressure, perhaps from the government, to get a bit more active with CapEx and adopting more modern technology in order to expand production and also to reduce the risk of accidents and so on. I'm wondering if that is true, and if so, would it open up any further opportunities for Amerigo? Terry, on the MOLY market commentary, it has been quite stable for the last years. We saw a price spike in MOLY prices two and a half years ago to around the range of $30 per pound. If you look at our numbers for Q3, we had an average price of $24 per pound, which is really good. We had budgeted a lower number than that, so we're happy with the results. The MOLY market is a volatile market. No one seems to understand it. A bit of a black box. We don't consider ourselves experts on MOLY. You will see that I don't waste any of the shareholders' time with my commentary on the MOLY market because there is really nothing I can contribute to it. We try to dig for as much information as we can, and even from our clients, we don't get very clear responses. We'll take it as positive when we see the, sorry, the price appreciations that we saw in Q3. It's a good additional layer to have in the business, but that's about it. I think that we have to remain focused on the copper operation, on the copper outlook, and consider MOLY a good addition that we really don't have a lot of control on. With respect to your second question, the only thing I can comment on was a recent press article where the Chair of Codelco was explaining different initiatives that they're following up in terms of automation, specifically for the deeper levels of their underground mines, which, of course, is making a reference to El Teniente. That's good news. The fact that they are looking actively and investing as they have done in the past is not something new. I think they're just expanding or magnifying their efforts, but they're not initiating their efforts in terms of automation. That's all good news, that the strength of Codelco could represent additional opportunities for us in the future. That's all I can say about it. Okay, that's great. Muchas gracias. Thank you. Thank you. As a reminder, if you would like to ask a question, please press star one. Your next question comes from Ben Pirie with Atrium Research. Please go ahead. Hi, Aurora. Congrats on another strong quarter considering the shutdown. Certainly great to see the debt being fully paid down and the dividend increase. Just on the shutdown quickly, I think I can speak for most investors that we're pleased with how you managed and minimized the production loss, or at least the loss in tailings flow. Can you actually just touch on what initiatives the company took to minimize that impact and just where we're at in terms of that fresh tailings flow coming back online? Yes. Thanks for the question, Ben. It was a challenge that the team at MVC faced quite well. Our production impact was twofold. One was the immediate one for 10 days of not receiving fresh tailings at MVC. Immediately, we ramped up on the ground the processing of historic tailings to minimize the impact. To the extent that that was done quickly and continues in place to date, that is one of the significant aspects that we did. In addition to that, we have taken advantage of having more plant capacity. The most volume-centric part of our operation are the fresh tailings, and that's where we get most of the volume, and it is the feed that takes up most of the real estate in our concentrator plant. To the extent that we have had some of that freed up, we've been able to tweak part of the operation in terms of improving classification. We have less material to classify. We have very good dilution at the moment that further increases our classification. We are redirecting some of the flows within the concentrator, and that has also allowed for increased residence times, which have a positive impact on recovery. We also have two projects that have come online which were part of our optimization projects for this year, which included improvements to the cascade operation, and that has also contributed to increased recovery. We have lower volume of fresh. We are compensating for that with more processing of historic tailings, but we have been able to increase recoveries of fresh, and that is one of the drivers that has helped us mitigate production losses. In fact, I think it's fair to state that we only had a production impact during the month of August. September was back to normal, and we have strong results as well for October. Great, thank you. Certainly impressive considering the small drop in your guidance for the annual guidance there. Just sort of reflecting on Q1 and Q2 in terms of share buybacks, we saw a lot of action on the NCIB in the first half of the year, but little to none in Q3. Was this primarily because of the shutdown, and you just wanted to hold back a little cash in the till? Or can you provide a little bit of color into that Q3 drop on the buybacks? I think it's difficult to try to divide the activity on buybacks on a quarter-on-quarter basis. There are a series of factors that go into play as to how to allocate the surplus cash to additional distributions. As you know, one of our key commitments, the minimal commitment we have with respect to buying back shares, is not to have dilution for shareholders year on year. It makes sense to get your commitments out of the way as soon as you can in the year, and so there was significantly more activity. In fact, in the second quarter, we had completed our sort of weaker quarter of the year in terms of production associated with maintenance shutdowns. Copper prices were doing good. We were committed to buying back at least the amount of shares that were being issued on exercise of options, and we still had six months ahead of us to continue with the key objective of reducing debt. We were not in a hurry to repay the debt in the second quarter. Come the third quarter, we had this interruption in the month of August, which always makes us more careful about managing the capital. We're always careful, but even more careful. We also saw the opportunity as copper prices started to strengthen in September of basically taking care of the debt first in the third quarter. There are a series of annual objectives. How you organize them throughout the year depends on a number of circumstances, a lot of management judgment and board decisions also have to be considered in terms of the intra-quarter allocation of the funds. I think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one, but just the general annual path of continuing to return cash to shareholders. We know our timing, so we have a good view on what's happening around us and ahead of us. We try to organize it as best as we can. The general objective is the important one, and that is do what you said you're going to do, produce what you said you were going to produce, and keep returning that additional cash to shareholders. Absolutely. I think you made the right call with paying down the debt as shareholders clearly liked that news yesterday with the stock being up so much. I'm just staying on this line of questioning, and I'll be quick here so other people can get in the mix. Just around the conservative approach you just mentioned with allocating some of your cash flow. Obviously, with paying down this debt, now you have additional cash flow, and in the press release yesterday, you mentioned roughly 50% of that new cash flow will go to the increased dividend. Can you just touch on what you guys plan to do with that remaining 50%? That sort of goes with the conservative approach. I think you're taking your time with that decision. Yes. Thanks for the question, Ben. To use some numbers and provide the context here, we were amortizing our debt at the tune of $7 million in principal payments per year. Last year, our debt expense was $2 million. We have in front of us a figure of $9 million that is being freed up. The decision of allocating essentially 50% of that, the additional $0.04 Canadian in dividends, will have a cost of $4.7 million on an annual basis. Give or take, 50% of the cash that has been freed up now has a placeholder, and that placeholder is the increased quarterly dividend. The cash that remains remains as cash that is available to the company. The company does not have intensive capital requirements. That has been the stable position and one of the premises of having the CRS. The obvious avenue of allocation would be additional distributions, which, as you know, are performance dividends and buybacks. I hope that answers the question. We wanted to have a clear path of showing the shareholders how that cash was going to be allocated. Now 50% of it has been already committed in what we're seeing is a structural change through the quarterly dividend increase. The rest remains to be allocated in the Amerigo normal course of business. Let's call it that. Understood. Okay. Thank you. Looking forward to seeing that. That's all I had today. Your next question comes from John Polcari with Mutual of America Capital Management. Please go ahead. Thank you. You, along with everybody else, congratulations on achieving key strategic objectives. I really only have one question, and that is, what are your thoughts regarding royalty payments as the price escalates, price of copper escalates, perhaps into the mid to high $5.00 per pound range or maybe even higher? I think the agreement on the royalties, when it was originally constructed, had limits on the upside. Can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate? John, that's a good question. Let me back up a little bit here to give you a well-rounded answer. The royalty is essentially the compensation that we give El Teniente for letting us work with their tailings. It is a significant driver of the success of the long-term relationship between MVC and El Teniente because it basically provides a mechanism for. Sharing of the economic benefits of the business between the purveyor of the tailings and the processor of the tailings. Our agreement has both lower and higher copper limits, which are separate for the fresh tailings and for the historic tailings. The limit for the fresh tailings is $4.80 per pound, and the limit for the historic tailings is $5.50 per pound. When we are outside of these ranges for two consecutive months, and there is also an indication that these prices will continue, we basically have to do one thing and one thing only, and that is to discuss the continuation of the royalty scale. It is a sliding scale. The higher the copper price, the higher the royalty factor with El Teniente. It is not a full renegotiation of anything else other than the royalty scale. We expect that, should these conditions arise. In fact, we're almost completing October, and October is the first time in history where we've seen an average LME copper price over $4.80. If this condition were to continue in November, then starting in December, but not before then, we have to discuss with El Teniente the continuation of the royalty factor only. I hope that answers your question. Yes. Thank you. Just once again, I'm sure I speak for everyone on Jawbalder. There are no further questions at this time. I will now turn the call over to Aurora Davidson for closing remarks. Please continue. Thank you. Thank you for attending today's call. The recording and the script will be available on the Amerigo website in the next few days. This is our last earnings call of the year, so we wish you all the best as we wrap up 2025 and look forward to our next earnings call in February of 2026. Please visit our website regularly for updates. Feel free to contact us with any questions or convenience. Graham, Carmen, and myself, we're always there on the other side of the email or the phone to answer any questions. Thank you for your continued interest in Amerigo. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker 6: Thank you, Operator. Good afternoon and welcome everyone to Amerigo Resources' quarterly conference call to discuss the company's financial results for the third quarter of 2025. We appreciate you joining us today. This call will cover Amerigo Resources' financial and operating results for the third quarter ended September 30, 2025. Following our prepared remarks, we will open the conference call to a question-and-answer session. Our call today will be led by Amerigo Resources' President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. These matters involve certain risks and uncertainties. Thank you, Operator. thank you operator Good afternoon and welcome everyone to Amerigo Resources' quarterly conference call to discuss the company's financial results for the third quarter of 2025. good afternoon and welcome everyone to amerigo resources' quarterly conference call to discuss the company's financial results for the third quarter of 2025 We appreciate you joining us today. we appreciate you joining us today This call will cover Amerigo Resources' financial and operating results for the third quarter ended September 30, 2025. this call will cover amerigo resources' financial and operating results for the third quarter ended september 30 2025 Following our prepared remarks, we will open the conference call to a question-and-answer session. following our prepared remarks we will open the conference call to a question-and-answer session Our call today will be led by Amerigo Resources' President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. our call today will be led by amerigo resources' president and chief executive officer aurora davidson along with the company's chief financial officer carmen amezquita Before we begin with our formal remarks, I would like to remind everyone that some of the statements on this conference call may be forward-looking statements. before we begin with our formal remarks i would like to remind everyone that some of the statements on this conference call may be forward-looking statements Forward-looking statements may include, but are not necessarily limited to, financial projections or other statements of the company's plans, objectives, expectations, or intentions. forward-looking statements may include but are not necessarily limited to financial projections or other statements of the company's plans objectives expectations or intentions These matters involve certain risks and uncertainties. these matters involve certain risks and uncertainties The company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our CDAR filings. I will now hand the call over to Aurora Davidson. Please go ahead, Aurora. The company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our CDAR filings. the company's actual results may differ significantly from those projected or suggested by any forward-looking statements due to a variety of factors which are discussed in detail in our cdar filings I will now hand the call over to Aurora Davidson. i will now hand the call over to aurora davidson Please go ahead, Aurora. please go ahead aurora

Speaker 1: Thank you. Welcome to Amerigo's earnings call for the third quarter of 2025. Q3 2025 was a quarter of strong execution and resilience for Amerigo and our MVC operation in Chile. On July 31, El Teniente faced a tragic accident resulting in MVC ceasing to receive fresh tailings for 10 days. Since the accident, MVC has received lower throughput from fresh tailings than normal under the original annual budget. This condition led to a decline in monthly production in August, followed by a production recovery in September. The timely adjustments made by MVC to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine-tuning of the concentrator plant. The lower August production forced us to adjust our copper production guidance from GBP 62.9 million to a range of GBP 60 million-GBP 61.5 million. Thank you. thank you Welcome to Amerigo's earnings call for the third quarter of 2025. welcome to amerigo's earnings call for the third quarter of 2025 Q3 2025 was a quarter of strong execution and resilience for Amerigo and our MVC operation in Chile. q3 2025 was a quarter of strong execution and resilience for amerigo and our mvc operation in chile On July 31, El Teniente faced a tragic accident resulting in MVC ceasing to receive fresh tailings for 10 days. on july 31 el teniente faced a tragic accident resulting in mvc ceasing to receive fresh tailings for 10 days Since the accident, MVC has received lower throughput from fresh tailings than normal under the original annual budget. since the accident mvc has received lower throughput from fresh tailings than normal under the original annual budget This condition led to a decline in monthly production in August, followed by a production recovery in September. this condition led to a decline in monthly production in august followed by a production recovery in september The timely adjustments made by MVC to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine-tuning of the concentrator plant. the timely adjustments made by mvc to reduce the impact of lower fresh tailings throughput included increased historic tailings processing and fine-tuning of the concentrator plant The lower August production forced us to adjust our copper production guidance from GBP 62.9 million to a range of GBP 60 million-GBP 61.5 million . the lower august production forced us to adjust our copper production guidance from gbp 62.9 million to a range of gbp 60 million-gbp 61.5 million Our production results in October have been strong, and we remain confident in the revised guidance. Despite the impact of El Teniente's accident, during the third quarter, MVC maintained a high plant availability of 98% and continued to operate without lost-time accidents or environmental incidents. These metrics reflect the strength of our operational planning and the dedication of our on-the-ground team. Stable copper prices and strong MOLY contributions supported total revenue of $52.5 million in the third quarter. The LME copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in Q3, peaking at a monthly average price of $4.51 per pound in September. I will provide my comments on the copper market later in the call. Net income for the quarter was $6.7 million, with earnings per share of $0.04. Our production results in October have been strong, and we remain confident in the revised guidance. our production results in october have been strong and we remain confident in the revised guidance Despite the impact of El Teniente's accident, during the third quarter, MVC maintained a high plant availability of 98% and continued to operate without lost-time accidents or environmental incidents. despite the impact of el teniente's accident during the third quarter mvc maintained a high plant availability of 98% and continued to operate without lost-time accidents or environmental incidents These metrics reflect the strength of our operational planning and the dedication of our on-the-ground team. these metrics reflect the strength of our operational planning and the dedication of our on-the-ground team Stable copper prices and strong MOLY contributions supported total revenue of $52.5 million in the third quarter. stable copper prices and strong moly contributions supported total revenue of $52.5 million in the third quarter The LME copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in Q3, peaking at a monthly average price of $4.51 per pound in September. the lme copper prices rose from an average of $4.32 per pound in the second quarter to an average price of $4.44 per pound in q3 peaking at a monthly average price of $4.51 per pound in september I will provide my comments on the copper market later in the call. i will provide my comments on the copper market later in the call Net income for the quarter was $6.7 million, with earnings per share of $0.04. net income for the quarter was $6.7 million with earnings per share of $0.04 The company generated operating cash flow of $12.4 million, excluding changes in working capital, and free cash flow to equity of $11.1 million. In line with the company's capital return strategy, or CRS, a quarterly dividend of CA$0.03 per share, or $3.5 million, was paid. Amerigo's quarter-end position was $28 million. MOLY production was 350,000 pounds, and MOLY prices averaged $24.11 per pound during the quarter. When looking at the cash cost metric, this resulted in a credit of $0.57 per pound, enabling MVC to post a cash cost of $1.80 per pound, which was lower than the $1.82 per pound of the second quarter and the $2.22 per pound of the first quarter. Based on these strong cash cost results, we have maintained our original annual cash cost guidance of $1.93 per pound. This guidance excludes MVC's collective bargaining costs. The company generated operating cash flow of $12.4 million, excluding changes in working capital, and free cash flow to equity of $11.1 million. the company generated operating cash flow of $12.4 million excluding changes in working capital and free cash flow to equity of $11.1 million In line with the company's capital return strategy, or CRS, a quarterly dividend of CA$0.03 per share, or $3.5 million, was paid. in line with the company's capital return strategy or crs a quarterly dividend of ca$0.03 per share or $3.5 million was paid Amerigo's quarter-end position was $28 million. amerigo's quarter-end position was $28 million MOLY production was 350,000 pounds, and MOLY prices averaged $24.11 per pound during the quarter. moly production was 350,000 pounds and moly prices averaged $24.11 per pound during the quarter When looking at the cash cost metric, this resulted in a credit of $0.57 per pound, enabling MVC to post a cash cost of $1.80 per pound, which was lower than the $1.82 per pound of the second quarter and the $2.22 per pound of the first quarter. when looking at the cash cost metric this resulted in a credit of $0.57 per pound enabling mvc to post a cash cost of $1.80 per pound which was lower than the $1.82 per pound of the second quarter and the $2.22 per pound of the first quarter Based on these strong cash cost results, we have maintained our original annual cash cost guidance of $1.93 per pound. based on these strong cash cost results we have maintained our original annual cash cost guidance of $1.93 per pound This guidance excludes MVC's collective bargaining costs. this guidance excludes mvc's collective bargaining costs Amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations. Carmen will walk you through the detailed financials shortly. I want to discuss three important events that occurred in October subsequent to the end of the third quarter. On the 27th, MVC fully repaid its outstanding debt. At the end of September, this debt totaled $7.5 million. Eliminating outstanding debt was one of the objectives for this year and marked the conclusion of a transformational 10-year period for Amerigo. When the company took on $100 million in debt, it was part of a strategic decision to invest in Chile and MVC's growth. This decision laid the foundation for a long-term copper-producing operation that could navigate market cycles without diluting shareholder ownership. From the beginning, we were clear: debt should not be a permanent fixture. Amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations. amerigo's financial performance continues to reflect the strength of our business model and the resilience of our operations Carmen will walk you through the detailed financials shortly. carmen will walk you through the detailed financials shortly I want to discuss three important events that occurred in October subsequent to the end of the third quarter. i want to discuss three important events that occurred in october subsequent to the end of the third quarter On the 27th, MVC fully repaid its outstanding debt. on the 27th mvc fully repaid its outstanding debt At the end of September, this debt totaled $7.5 million. at the end of september this debt totaled $7.5 million Eliminating outstanding debt was one of the objectives for this year and marked the conclusion of a transformational 10-year period for Amerigo. eliminating outstanding debt was one of the objectives for this year and marked the conclusion of a transformational 10-year period for amerigo When the company took on $100 million in debt, it was part of a strategic decision to invest in Chile and MVC's growth. when the company took on $100 million in debt it was part of a strategic decision to invest in chile and mvc's growth This decision laid the foundation for a long-term copper-producing operation that could navigate market cycles without diluting shareholder ownership. this decision laid the foundation for a long-term copper-producing operation that could navigate market cycles without diluting shareholder ownership From the beginning, we were clear: debt should not be a permanent fixture. from the beginning we were clear debt should not be a permanent fixture It was a tool, and like any good tool, it had a purpose and a timeline. Every debt repayment was a step towards greater financial strength and flexibility. Our final debt repayment affirmed the correctness of that strategic decision. It also reflects the company's resilience and commitment to shareholders. Also, on October 27th, Amerigo's board of directors increased the quarterly dividend paid to shareholders to $0.04 Canadian per share. This is a 33% increase from the prior dividend and double the initial dividend under the current CRS. This dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt. It was a tool, and like any good tool, it had a purpose and a timeline. it was a tool and like any good tool it had a purpose and a timeline Every debt repayment was a step towards greater financial strength and flexibility. every debt repayment was a step towards greater financial strength and flexibility Our final debt repayment affirmed the correctness of that strategic decision. our final debt repayment affirmed the correctness of that strategic decision It also reflects the company's resilience and commitment to shareholders. it also reflects the company's resilience and commitment to shareholders Also, on October 27th, Amerigo's board of directors increased the quarterly dividend paid to shareholders to $0.04 Canadian per share. also on october 27th amerigo's board of directors increased the quarterly dividend paid to shareholders to $0.04 canadian per share This is a 33% increase from the prior dividend and double the initial dividend under the current CRS. this is a 33% increase from the prior dividend and double the initial dividend under the current crs This dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt. this dividend increase will allocate roughly 50% of the annual additional free cash flow that will become available from not carrying debt It is an important signal of the board's vision for the future because, as we mentioned from day one at the CRS, the quarterly dividend is set at a rate that is sustainable in the foreseeable future, irrespective of short-term copper price cyclicality. This is a new floor for shareholders, and as has been the case in the last four years, additional distributions will continue to be made through share buybacks and performance dividends. The final significant event I want to comment on occurred on October 22nd. On that day, MVC signed a three-year collective agreement with its main union, the Operators Union, which has 210 members. Collective agreements play a crucial role in Chile's mining industry. These agreements maintain labor peace and provide a structured framework for negotiating wages, working hours, benefits, and bonuses. It is an important signal of the board's vision for the future because, as we mentioned from day one at the CRS, the quarterly dividend is set at a rate that is sustainable in the foreseeable future, irrespective of short-term copper price cyclicality. it is an important signal of the board's vision for the future because as we mentioned from day one at the crs the quarterly dividend is set at a rate that is sustainable in the foreseeable future irrespective of short-term copper price cyclicality This is a new floor for shareholders, and as has been the case in the last four years, additional distributions will continue to be made through share buybacks and performance dividends. this is a new floor for shareholders and as has been the case in the last four years additional distributions will continue to be made through share buybacks and performance dividends The final significant event I want to comment on occurred on October 22nd. the final significant event i want to comment on occurred on october 22nd On that day, MVC signed a three-year collective agreement with its main union, the Operators Union, which has 210 members. on that day mvc signed a three-year collective agreement with its main union the operators union which has 210 members Collective agreements play a crucial role in Chile's mining industry. collective agreements play a crucial role in chile's mining industry These agreements maintain labor peace and provide a structured framework for negotiating wages, working hours, benefits, and bonuses. these agreements maintain labor peace and provide a structured framework for negotiating wages working hours benefits and bonuses The agreements must balance the strength or weakness of copper prices at the time of negotiation while ensuring access to a skilled workforce and the specific economics of the operation. We had a constructive negotiation with our workers and reached a fair agreement for both parties. Now, I will move on to our commentary on the copper market. The long-term themes of surging demand and supply constraints remain significant. A third important element that cannot be ignored is geopolitical interference in the marketplace. Let's start with the obvious: supply constraints and disruptions. A copper supply deficit between 300,000 and 500,000 tons is now forecast for this year. This has already pushed copper prices upwards, as evidenced by October's average LME price over $4.84 per pound. The agreements must balance the strength or weakness of copper prices at the time of negotiation while ensuring access to a skilled workforce and the specific economics of the operation. the agreements must balance the strength or weakness of copper prices at the time of negotiation while ensuring access to a skilled workforce and the specific economics of the operation We had a constructive negotiation with our workers and reached a fair agreement for both parties. we had a constructive negotiation with our workers and reached a fair agreement for both parties Now, I will move on to our commentary on the copper market. now i will move on to our commentary on the copper market The long-term themes of surging demand and supply constraints remain significant. the long-term themes of surging demand and supply constraints remain significant A third important element that cannot be ignored is geopolitical interference in the marketplace. a third important element that cannot be ignored is geopolitical interference in the marketplace Let's start with the obvious: supply constraints and disruptions. let's start with the obvious supply constraints and disruptions A copper supply deficit between 300,000 and 500,000 tons is now forecast for this year. a copper supply deficit between 300,000 and 500,000 tons is now forecast for this year This has already pushed copper prices upwards, as evidenced by October's average LME price over $4.84 per pound. this has already pushed copper prices upwards as evidenced by october's average lme price over $4.84 per pound In addition to the trend of declining ore grades, specific mine disruptions at Grasberg, Kamoa-Kakula, and El Teniente have resulted in the loss of around 518,000 tons of copper this year. Looking beyond 2025, companies such as Antofagasta Minerals and Teck have already downgraded their 2026 copper guidance. Freeport and Ivanhoe Mines will likely do the same following physical inspections of their impacted mines. As I mentioned a minute ago, the current global copper supply has tightened, resulting in a deficit. This bottleneck is driven by copper concentrate availability, which has been affected by production shortfalls at the mines. At the same time, due to overinvestment, the world now has too many smelters to refine copper concentrates. This situation is reflected by the size and the movement of treatment and refining charges, or TCRCs. These are the fees that smelters charge miners to process copper concentrates into refined copper. In addition to the trend of declining ore grades, specific mine disruptions at Grasberg, Kamoa-Kakula, and El Teniente have resulted in the loss of around 518,000 tons of copper this year. in addition to the trend of declining ore grades specific mine disruptions at grasberg kamoa-kakula and el teniente have resulted in the loss of around 518,000 tons of copper this year Looking beyond 2025, companies such as Antofagasta Minerals and Teck have already downgraded their 2026 copper guidance. looking beyond 2025 companies such as antofagasta minerals and teck have already downgraded their 2026 copper guidance Freeport and Ivanhoe Mines will likely do the same following physical inspections of their impacted mines. freeport and ivanhoe mines will likely do the same following physical inspections of their impacted mines As I mentioned a minute ago, the current global copper supply has tightened, resulting in a deficit. as i mentioned a minute ago the current global copper supply has tightened resulting in a deficit This bottleneck is driven by copper concentrate availability, which has been affected by production shortfalls at the mines. this bottleneck is driven by copper concentrate availability which has been affected by production shortfalls at the mines At the same time, due to overinvestment, the world now has too many smelters to refine copper concentrates. at the same time due to overinvestment the world now has too many smelters to refine copper concentrates This situation is reflected by the size and the movement of treatment and refining charges, or TCRCs. this situation is reflected by the size and the movement of treatment and refining charges or tcrcs These are the fees that smelters charge miners to process copper concentrates into refined copper. these are the fees that smelters charge miners to process copper concentrates into refined copper Treatment charge, or TC, is the cost to process the concentrate at the smelter. Refining charge, or RC, is the cost to refine the metal from the concentrate. TCRCs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate. When TCRCs are low, miners earn more, and when they're high, smelters take a larger share. Until 2025, TCRCs were negotiated annually between major copper miners and smelters via breach terms known as a TCRC annual benchmark governed long-term contracts. There is also a spot TCRC market for short-term or one-up deals, which reflects real-time market conditions and is volatile. Smelters are currently struggling to secure feedstock, which has pushed spot TCRCs into negative territory. Despite the negative spot TCRCs, smelters have been able to survive thanks to byproduct credits from other metals in the concentrates they process, such as gold or silver. Treatment charge, or TC, is the cost to process the concentrate at the smelter. treatment charge or tc is the cost to process the concentrate at the smelter Refining charge, or RC, is the cost to refine the metal from the concentrate. refining charge or rc is the cost to refine the metal from the concentrate TCRCs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate. tcrcs are subtracted from the copper price to determine how much miners actually earn per ton of concentrate When TCRCs are low, miners earn more, and when they're high, smelters take a larger share. when tcrcs are low miners earn more and when they're high smelters take a larger share Until 2025, TCRCs were negotiated annually between major copper miners and smelters via breach terms known as a TCRC annual benchmark governed long-term contracts. until 2025 tcrcs were negotiated annually between major copper miners and smelters via breach terms known as a tcrc annual benchmark governed long-term contracts There is also a spot TCRC market for short-term or one-up deals, which reflects real-time market conditions and is volatile. there is also a spot tcrc market for short-term or one-up deals which reflects real-time market conditions and is volatile Smelters are currently struggling to secure feedstock, which has pushed spot TCRCs into negative territory. smelters are currently struggling to secure feedstock which has pushed spot tcrcs into negative territory Despite the negative spot TCRCs, smelters have been able to survive thanks to byproduct credits from other metals in the concentrates they process, such as gold or silver. despite the negative spot tcrcs smelters have been able to survive thanks to byproduct credits from other metals in the concentrates they process such as gold or silver However, negative TCRCs clearly put significant financial pressure on smelters, whose business models depend on virtually continuous operation. In recognition of the financial stress imposed on smelters, Freeport, which is one of the traditional benchmark setters, has just abandoned the global TCRC benchmark model and has proposed a new floor cap contract model to protect the smelter margins. This model sets minimum and maximum TCRC levels, providing greater stability in volatile market conditions, such as the recent negative TCRC spot terms. In 2026, we may see a different landscape moving from the traditional stable benchmark-based system to floor cap models. However, we could also continue to see negative TCRCs under which, instead of miners paying smelters, smelters will pay miners. We may also see multi-year contracts instead of annual or shorter-term contracts, and a shift from TCRCs being the primary revenue source for smelters to a reliance on byproducts. However, negative TCRCs clearly put significant financial pressure on smelters, whose business models depend on virtually continuous operation. however negative tcrcs clearly put significant financial pressure on smelters whose business models depend on virtually continuous operation In recognition of the financial stress imposed on smelters, Freeport, which is one of the traditional benchmark setters, has just abandoned the global TCRC benchmark model and has proposed a new floor cap contract model to protect the smelter margins. in recognition of the financial stress imposed on smelters freeport which is one of the traditional benchmark setters has just abandoned the global tcrc benchmark model and has proposed a new floor cap contract model to protect the smelter margins This model sets minimum and maximum TCRC levels, providing greater stability in volatile market conditions, such as the recent negative TCRC spot terms. this model sets minimum and maximum tcrc levels providing greater stability in volatile market conditions such as the recent negative tcrc spot terms In 2026, we may see a different landscape moving from the traditional stable benchmark-based system to floor cap models. in 2026 we may see a different landscape moving from the traditional stable benchmark-based system to floor cap models However, we could also continue to see negative TCRCs under which, instead of miners paying smelters, smelters will pay miners. however we could also continue to see negative tcrcs under which instead of miners paying smelters smelters will pay miners We may also see multi-year contracts instead of annual or shorter-term contracts, and a shift from TCRCs being the primary revenue source for smelters to a reliance on byproducts. we may also see multi-year contracts instead of annual or shorter-term contracts and a shift from tcrcs being the primary revenue source for smelters to a reliance on byproducts In other words, one of the longest-term features of the copper market is currently under review, and this is all because of long-term stresses on copper supply, which we do not anticipate will change anytime soon. On the demand side, the global need for copper is expected to rise year on year, at least until 2035. Demand may be shifting regionally, but global total demand is not slowing. The main drivers of growth fall into two big buckets: electrification and digitalization. A few years ago, digitalization was not even discussed seriously in analysis of future copper demand. Tariffs, such as a 50% U.S. tariff on most finished and semi-finished copper products, are also affecting trade flows and regional inventory balances. Speculative trading continues, and we know it was very pronounced earlier this year, as shown by the differences between LME and COMEX copper prices. In other words, one of the longest-term features of the copper market is currently under review, and this is all because of long-term stresses on copper supply, which we do not anticipate will change anytime soon. in other words one of the longest-term features of the copper market is currently under review and this is all because of long-term stresses on copper supply which we do not anticipate will change anytime soon On the demand side, the global need for copper is expected to rise year on year, at least until 2035. on the demand side the global need for copper is expected to rise year on year at least until 2035 Demand may be shifting regionally, but global total demand is not slowing. demand may be shifting regionally but global total demand is not slowing The main drivers of growth fall into two big buckets: electrification and digitalization. the main drivers of growth fall into two big buckets electrification and digitalization A few years ago, digitalization was not even discussed seriously in analysis of future copper demand. a few years ago digitalization was not even discussed seriously in analysis of future copper demand Tariffs, such as a 50% U.S. tariff on most finished and semi-finished copper products, are also affecting trade flows and regional inventory balances. tariffs such as a 50% u.s tariff on most finished and semi-finished copper products are also affecting trade flows and regional inventory balances Speculative trading continues, and we know it was very pronounced earlier this year, as shown by the differences between LME and COMEX copper prices. speculative trading continues and we know it was very pronounced earlier this year as shown by the differences between lme and comex copper prices Geopolitical conflicts or their resolutions can also strengthen or weaken the U.S. dollar, which affects copper prices. Governments are now actively investing in mining companies and, in some cases, prioritizing certain projects. Political intervention, resource nationalism, and regulatory shifts will impact market behavior. All of these factors could lead to a copper market in 2026 that remains volatile but elevated. To end my macro comments, I will mention that Chile will now hold general elections shortly. The first round will be on November 16, followed by a run-up, which is usually the case, on December 14, 2025. The presidential inauguration will be on March 11, 2026. Current polls suggest that none of the candidates will get 50% or more of the votes on the first round, and that will lead the contenders to a run-up. Geopolitical conflicts or their resolutions can also strengthen or weaken the U.S. dollar, which affects copper prices. geopolitical conflicts or their resolutions can also strengthen or weaken the u.s dollar which affects copper prices Governments are now actively investing in mining companies and, in some cases, prioritizing certain projects. governments are now actively investing in mining companies and in some cases prioritizing certain projects Political intervention, resource nationalism, and regulatory shifts will impact market behavior. political intervention resource nationalism and regulatory shifts will impact market behavior All of these factors could lead to a copper market in 2026 that remains volatile but elevated. all of these factors could lead to a copper market in 2026 that remains volatile but elevated To end my macro comments, I will mention that Chile will now hold general elections shortly. to end my macro comments i will mention that chile will now hold general elections shortly The first round will be on November 16, followed by a run-up, which is usually the case, on December 14, 2025. the first round will be on november 16 followed by a run-up which is usually the case on december 14 2025 The presidential inauguration will be on March 11, 2026. the presidential inauguration will be on march 11 2026 Current polls suggest that none of the candidates will get 50% or more of the votes on the first round, and that will lead the contenders to a run-up. current polls suggest that none of the candidates will get 50% or more of the votes on the first round and that will lead the contenders to a run-up With Janet Jara of the center-left coalition Unidad por Chile and José Antonio Cast of the Republican Party, who has a far-right stance, being the most likely candidates. In this run-up scenario, José Antonio Cast, a pro-business, pro-mining candidate, would likely win the election. I will conclude my remarks with a few comments about the continued success of our capital return strategy. Only a month ago, we reached the fourth anniversary of the CRS, which, as you know, comprises quarterly dividends, performance dividends, and share buybacks. Over the past four years, we have used the three components to return $93.7 million to shareholders. 60% of the return has come from dividends, paying a cumulative dividend of $0.51 Canadian per share, and 33% from buybacks, retiring 25.6 million shares or 14% of the shares outstanding at the start of the CRS. With Janet Jara of the center-left coalition Unidad por Chile and José Antonio Cast of the Republican Party, who has a far-right stance, being the most likely candidates. with janet jara of the center-left coalition unidad por chile and josé antonio cast of the republican party who has a far-right stance being the most likely candidates In this run-up scenario, José Antonio Cast, a pro-business, pro-mining candidate, would likely win the election. in this run-up scenario josé antonio cast a pro-business pro-mining candidate would likely win the election I will conclude my remarks with a few comments about the continued success of our capital return strategy. i will conclude my remarks with a few comments about the continued success of our capital return strategy Only a month ago, we reached the fourth anniversary of the CRS, which, as you know, comprises quarterly dividends, performance dividends, and share buybacks. only a month ago we reached the fourth anniversary of the crs which as you know comprises quarterly dividends performance dividends and share buybacks Over the past four years, we have used the three components to return $93.7 million to shareholders. 60% of the return has come from dividends, paying a cumulative dividend of $0.51 Canadian per share, and 33% from buybacks, retiring 25.6 million shares or 14% of the shares outstanding at the start of the CRS. over the past four years we have used the three components to return $93.7 million to shareholders 60% of the return has come from dividends paying a cumulative dividend of $0.51 canadian per share and 33% from buybacks retiring 25.6 million shares or 14% of the shares outstanding at the start of the crs We recently published a video that illustrates the benefits of the CRS for shareholders. The video is on our website, and in it, we noted that on a total return to shareholders' basis, Amerigo Resources has outperformed mid-tier copper producers, copper ETFs, and copper futures since October of 2021. Total returns measure share appreciation and dividends, but they cannot capture the benefit of share buybacks, which ultimately benefits shareholders by reducing the number of shares in which dividends are paid. To better capture the effect of buybacks, we undertook another analysis. That analysis identified another powerful aspect of investing in Amerigo Resources. Buying Amerigo Resources shares is a very cost-effective way to own copper. We have shown that over the last four years, it has been cheaper to buy a pound of copper by buying Amerigo Resources shares than to buy it at the LME. We recently published a video that illustrates the benefits of the CRS for shareholders. we recently published a video that illustrates the benefits of the crs for shareholders The video is on our website, and in it, we noted that on a total return to shareholders' basis, Amerigo Resources has outperformed mid-tier copper producers, copper ETFs, and copper futures since October of 2021. the video is on our website and in it we noted that on a total return to shareholders' basis amerigo resources has outperformed mid-tier copper producers copper etfs and copper futures since october of 2021 Total returns measure share appreciation and dividends, but they cannot capture the benefit of share buybacks, which ultimately benefits shareholders by reducing the number of shares in which dividends are paid. total returns measure share appreciation and dividends but they cannot capture the benefit of share buybacks which ultimately benefits shareholders by reducing the number of shares in which dividends are paid To better capture the effect of buybacks, we undertook another analysis. to better capture the effect of buybacks we undertook another analysis That analysis identified another powerful aspect of investing in Amerigo Resources. that analysis identified another powerful aspect of investing in amerigo resources Buying Amerigo Resources shares is a very cost-effective way to own copper. buying amerigo resources shares is a very cost-effective way to own copper We have shown that over the last four years, it has been cheaper to buy a pound of copper by buying Amerigo Resources shares than to buy it at the LME. we have shown that over the last four years it has been cheaper to buy a pound of copper by buying amerigo resources shares than to buy it at the lme In relation to a pound of copper produced by Amerigo in each CRS year, we have shown that it was extremely inexpensive to purchase a pound of copper through owning Amerigo shares. In other words, in relation to the underlying commodity, there was a clear undervaluation of Amerigo's share price, especially before the CRS was introduced. The other avenues of return provided by Amerigo, share appreciation, dividends, and buybacks, were all magnified by the positive impact of that discount on a per pound of copper produced basis. Since the CRS was launched, Amerigo's share price, and therefore the cost of its shares per pound of copper produced, has increased. This is what we wanted, and that is what investors wanted as well. Consequently, that original discount to LME copper has become smaller over time. In relation to a pound of copper produced by Amerigo in each CRS year, we have shown that it was extremely inexpensive to purchase a pound of copper through owning Amerigo shares. in relation to a pound of copper produced by amerigo in each crs year we have shown that it was extremely inexpensive to purchase a pound of copper through owning amerigo shares In other words, in relation to the underlying commodity, there was a clear undervaluation of Amerigo's share price, especially before the CRS was introduced. in other words in relation to the underlying commodity there was a clear undervaluation of amerigo's share price especially before the crs was introduced The other avenues of return provided by Amerigo, share appreciation, dividends, and buybacks, were all magnified by the positive impact of that discount on a per pound of copper produced basis. the other avenues of return provided by amerigo share appreciation dividends and buybacks were all magnified by the positive impact of that discount on a per pound of copper produced basis Since the CRS was launched, Amerigo's share price, and therefore the cost of its shares per pound of copper produced, has increased. since the crs was launched amerigo's share price and therefore the cost of its shares per pound of copper produced has increased This is what we wanted, and that is what investors wanted as well. this is what we wanted and that is what investors wanted as well Consequently, that original discount to LME copper has become smaller over time. consequently that original discount to lme copper has become smaller over time However, even if the discount has decreased, buying Amerigo shares still remains the most cost-effective way to own a pound of copper compared to a basket of benchmarks. Our analysis also showed that, in all cases except Amerigo, investors in the benchmark companies have been purchasing one pound of copper at a premium to LME copper prices. In other words, controlling a pound of copper through holding other shares in the benchmark has a higher cost than the LME copper price. For investors seeking maximum exposure to copper per investment dollar, this outcome is crucial. It shows that Amerigo is a here-and-now copper play. In Amerigo, you are not paying for future growth or for investing in other metals. When buying shares of Amerigo, you have not been paying the high earnings multiple that is expected for growth stocks. However, even if the discount has decreased, buying Amerigo shares still remains the most cost-effective way to own a pound of copper compared to a basket of benchmarks. however even if the discount has decreased buying amerigo shares still remains the most cost-effective way to own a pound of copper compared to a basket of benchmarks Our analysis also showed that, in all cases except Amerigo, investors in the benchmark companies have been purchasing one pound of copper at a premium to LME copper prices. our analysis also showed that in all cases except amerigo investors in the benchmark companies have been purchasing one pound of copper at a premium to lme copper prices In other words, controlling a pound of copper through holding other shares in the benchmark has a higher cost than the LME copper price. in other words controlling a pound of copper through holding other shares in the benchmark has a higher cost than the lme copper price For investors seeking maximum exposure to copper per investment dollar, this outcome is crucial. for investors seeking maximum exposure to copper per investment dollar this outcome is crucial It shows that Amerigo is a here-and-now copper play. it shows that amerigo is a here-and-now copper play In Amerigo, you are not paying for future growth or for investing in other metals. in amerigo you are not paying for future growth or for investing in other metals When buying shares of Amerigo, you have not been paying the high earnings multiple that is expected for growth stocks. when buying shares of amerigo you have not been paying the high earnings multiple that is expected for growth stocks You are controlling a pound of copper as cheaply as possible and more effectively than peers and copper itself. To conclude, Amerigo's returns over the four years of the CRS have come in four flavors: share appreciation, dividends, buybacks, and a discount to the LME copper price. As share appreciation has increased, the discount has decreased. Dividends and buybacks have fueled this performance. Amerigo's CRS has been a game changer for shareholders, outperforming other copper investments. This has occurred on a total return per share and on a per pound of copper basis. Amerigo rewards shareholders with predictable, consistent dividends, performance dividends when copper prices rise, no dilution, and the most efficient way to control a pound of copper. We are now debt-free. We look forward to many more years of success for the company and its shareholders. Amerigo's CFO, Carmen Amezquita, will now discuss the company's financial results. Carmen, please go ahead. You are controlling a pound of copper as cheaply as possible and more effectively than peers and copper itself. you are controlling a pound of copper as cheaply as possible and more effectively than peers and copper itself To conclude, Amerigo's returns over the four years of the CRS have come in four flavors: share appreciation, dividends, buybacks, and a discount to the LME copper price. to conclude amerigo's returns over the four years of the crs have come in four flavors share appreciation dividends buybacks and a discount to the lme copper price As share appreciation has increased, the discount has decreased. as share appreciation has increased the discount has decreased Dividends and buybacks have fueled this performance. dividends and buybacks have fueled this performance Amerigo's CRS has been a game changer for shareholders, outperforming other copper investments. amerigo's crs has been a game changer for shareholders outperforming other copper investments This has occurred on a total return per share and on a per pound of copper basis. this has occurred on a total return per share and on a per pound of copper basis Amerigo rewards shareholders with predictable, consistent dividends, performance dividends when copper prices rise, no dilution, and the most efficient way to control a pound of copper. amerigo rewards shareholders with predictable consistent dividends performance dividends when copper prices rise no dilution and the most efficient way to control a pound of copper We are now debt-free. we are now debt-free We look forward to many more years of success for the company and its shareholders. we look forward to many more years of success for the company and its shareholders Amerigo's CFO, Carmen Amezquita, will now discuss the company's financial results. amerigo's cfo carmen amezquita will now discuss the company's financial results Carmen, please go ahead. carmen please go ahead

Speaker 2: Thanks, Aurora. I'm pleased to present the financial report for the third quarter of 2025 from Amerigo and its MVC operation in Chile. During the three months ended September 30, 2025, the company posted a net income of $6.7 million, earnings per share of $0.04 or CAD 0.06, and EBITDA of $18.7 million. The increase in net income to $6.7 million compared to $2.8 million in Q3 2024 was a result of stronger fair value adjustments to copper revenue receivables and lower smelting and refining charges in response to the 2025 annual benchmark terms. Specifically, in this third quarter, there were $1.3 million in positive fair value adjustments compared to $2.7 million in negative fair value adjustments in Q3 2024, and smelting and refining charges decreased by $3 million. Revenue in Q3 was $52.5 million compared to $45.4 million in Q3 2024. Thanks, Aurora. thanks aurora I'm pleased to present the financial report for the third quarter of 2025 from Amerigo and its MVC operation in Chile. i'm pleased to present the financial report for the third quarter of 2025 from amerigo and its mvc operation in chile During the three months ended September 30, 2025, the company posted a net income of $6.7 million, earnings per share of $0.04 or CAD 0.06, and EBITDA of $18.7 million. during the three months ended september 30 2025 the company posted a net income of $6.7 million earnings per share of $0.04 or cad 0.06 and ebitda of $18.7 million The increase in net income to $6.7 million compared to $2.8 million in Q3 2024 was a result of stronger fair value adjustments to copper revenue receivables and lower smelting and refining charges in response to the 2025 annual benchmark terms. the increase in net income to $6.7 million compared to $2.8 million in q3 2024 was a result of stronger fair value adjustments to copper revenue receivables and lower smelting and refining charges in response to the 2025 annual benchmark terms Specifically, in this third quarter, there were $1.3 million in positive fair value adjustments compared to $2.7 million in negative fair value adjustments in Q3 2024, and smelting and refining charges decreased by $3 million. specifically in this third quarter there were $1.3 million in positive fair value adjustments compared to $2.7 million in negative fair value adjustments in q3 2024 and smelting and refining charges decreased by $3 million Revenue in Q3 was $52.5 million compared to $45.4 million in Q3 2024. revenue in q3 was $52.5 million compared to $45.4 million in q3 2024 This included copper tolling revenue of $44.1 million and molybdenum revenue of $8.3 million. In Q3 2025, the gross value of copper tolled on behalf of DET was $67.2 million. From this gross revenue, we deducted notional items, including DET royalties of $20.6 million, smelting and refining of $3.4 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $1.3 million. Revenue also included molybdenum revenue of $8.3 million. We reported a provisional copper price of $4.54 per pound on our Q3 2025 sales. This provisional price includes mark-to-market adjustments based on the LME price curve as of September 30. The final settlement prices for July, August, and September 2025 sales will be the average LME prices for October, November, and December 2025, respectively. This included copper tolling revenue of $44.1 million and molybdenum revenue of $8.3 million. this included copper tolling revenue of $44.1 million and molybdenum revenue of $8.3 million In Q3 2025, the gross value of copper tolled on behalf of DET was $67.2 million. in q3 2025 the gross value of copper tolled on behalf of det was $67.2 million From this gross revenue, we deducted notional items, including DET royalties of $20.6 million, smelting and refining of $3.4 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $1.3 million. from this gross revenue we deducted notional items including det royalties of $20.6 million smelting and refining of $3.4 million and transportation of $0.4 million and then added positive fair value adjustments to settlement receivables of $1.3 million Revenue also included molybdenum revenue of $8.3 million. revenue also included molybdenum revenue of $8.3 million We reported a provisional copper price of $4.54 per pound on our Q3 2025 sales. we reported a provisional copper price of $4.54 per pound on our q3 2025 sales This provisional price includes mark-to-market adjustments based on the LME price curve as of September 30. this provisional price includes mark-to-market adjustments based on the lme price curve as of september 30 The final settlement prices for July, August, and September 2025 sales will be the average LME prices for October, November, and December 2025, respectively. the final settlement prices for july august and september 2025 sales will be the average lme prices for october november and december 2025 respectively A 10% increase or decrease from the $4.54 per pound provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4 2025 regarding Q3 2025 production. Tolling and production costs increased 4% from $38.1 million in Q3 2024 to $39.5 million in Q3 2025. The most significant cost variances between the two quarters included an increase in lime costs of $0.8 million, as more lime consumption is in line with more historic tailings processing. Increased inventory adjustments of $0.5 million from more copper delivered than produced during the quarter. An increase in DET moly royalties of $1.3 million was the result of stronger prices and production during the quarter. The gross profit after revenue and production costs was $13 million compared to $7.4 million in Q3 2024, a $5.6 million increase. A 10% increase or decrease from the $4.54 per pound provisional price used on September 30, 2025, would result in a $6.8 million change in revenue in Q4 2025 regarding Q3 2025 production. a 10% increase or decrease from the $4.54 per pound provisional price used on september 30 2025 would result in a $6.8 million change in revenue in q4 2025 regarding q3 2025 production Tolling and production costs increased 4% from $38.1 million in Q3 2024 to $39.5 million in Q3 2025. tolling and production costs increased 4% from $38.1 million in q3 2024 to $39.5 million in q3 2025 The most significant cost variances between the two quarters included an increase in lime costs of $0.8 million, as more lime consumption is in line with more historic tailings processing. the most significant cost variances between the two quarters included an increase in lime costs of $0.8 million as more lime consumption is in line with more historic tailings processing Increased inventory adjustments of $0.5 million from more copper delivered than produced during the quarter. increased inventory adjustments of $0.5 million from more copper delivered than produced during the quarter An increase in DET moly royalties of $1.3 million was the result of stronger prices and production during the quarter. an increase in det moly royalties of $1.3 million was the result of stronger prices and production during the quarter The gross profit after revenue and production costs was $13 million compared to $7.4 million in Q3 2024, a $5.6 million increase. the gross profit after revenue and production costs was $13 million compared to $7.4 million in q3 2024 a $5.6 million increase General and administrative expenses were $1.2 million compared to $0.9 million in the prior year quarter. These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.4 million, and share-based payments of $0.2 million. Other losses were $0.6 million compared to other gains of $0.6 million in the third quarter of 2024, which were driven mainly by foreign exchange fluctuations. Finance expense was $0.3 million, down from $0.9 million, with the difference driven by lower interest expense from a lower loan balance in Q3 2025, as well as a $0.3 million expense in Q3 2024 related to the fair value of interest rate swaps. Income tax expense was $4.5 million compared to $3.3 million in Q3 2024. Included in the income tax expense in Q3 2025 is $4.9 million in current tax expense and $0.4 million in deferred income tax recovery. General and administrative expenses were $1.2 million compared to $0.9 million in the prior year quarter. general and administrative expenses were $1.2 million compared to $0.9 million in the prior year quarter These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.4 million, and share-based payments of $0.2 million. these expenses included salaries management and professional fees of $0.6 million office and general expenses of $0.4 million and share-based payments of $0.2 million Other losses were $0.6 million compared to other gains of $0.6 million in the third quarter of 2024, which were driven mainly by foreign exchange fluctuations. other losses were $0.6 million compared to other gains of $0.6 million in the third quarter of 2024 which were driven mainly by foreign exchange fluctuations Finance expense was $0.3 million, down from $0.9 million, with the difference driven by lower interest expense from a lower loan balance in Q3 2025, as well as a $0.3 million expense in Q3 2024 related to the fair value of interest rate swaps. finance expense was $0.3 million down from $0.9 million with the difference driven by lower interest expense from a lower loan balance in q3 2025 as well as a $0.3 million expense in q3 2024 related to the fair value of interest rate swaps Income tax expense was $4.5 million compared to $3.3 million in Q3 2024. income tax expense was $4.5 million compared to $3.3 million in q3 2024 Included in the income tax expense in Q3 2025 is $4.9 million in current tax expense and $0.4 million in deferred income tax recovery. included in the income tax expense in q3 2025 is $4.9 million in current tax expense and $0.4 million in deferred income tax recovery Deferred income tax is an accounting figure used to reconcile timing differences and, in Amerigo's case, primarily arises from the differences in timing of financial and tax depreciation. Current tax expense in Q3 2025 was $4.9 million compared to $4.4 million in Q3 2024. Before moving on to the statement of financial position, I want to mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. In Q3 2025, Amerigo's cash cost was $1.80 per pound, decreasing from $1.93 per pound in Q3 2024, with the reduction primarily coming from a $0.16 per pound decrease in smelting and refining charges and an increase of $0.25 per pound in moly byproduct credits, offset by increases of $0.07 per pound in power costs, $0.07 per pound in lime costs, $0.04 per pound in maintenance, and $0.03 per pound in other direct costs. Deferred income tax is an accounting figure used to reconcile timing differences and, in Amerigo's case, primarily arises from the differences in timing of financial and tax depreciation. deferred income tax is an accounting figure used to reconcile timing differences and in amerigo's case primarily arises from the differences in timing of financial and tax depreciation Current tax expense in Q3 2025 was $4.9 million compared to $4.4 million in Q3 2024. current tax expense in q3 2025 was $4.9 million compared to $4.4 million in q3 2024 Before moving on to the statement of financial position, I want to mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. before moving on to the statement of financial position i want to mention some non-ifrs measures used by the company cash cost total cost and all-in sustaining costs In Q3 2025, Amerigo's cash cost was $1.80 per pound, decreasing from $1.93 per pound in Q3 2024, with the reduction primarily coming from a $0.16 per pound decrease in smelting and refining charges and an increase of $0.25 per pound in moly byproduct credits, offset by increases of $0.07 per pound in power costs, $0.07 per pound in lime costs, $0.04 per pound in maintenance, and $0.03 per pound in other direct costs. in q3 2025 amerigo's cash cost was $1.80 per pound decreasing from $1.93 per pound in q3 2024 with the reduction primarily coming from a $0.16 per pound decrease in smelting and refining charges and an increase of $0.25 per pound in moly byproduct credits offset by increases of $0.07 per pound in power costs $0.07 per pound in lime costs $0.04 per pound in maintenance and $0.03 per pound in other direct costs Total cost increased to $3.71 per pound, up $0.17 from Q3 2024's $3.54 per pound. This was the result of an increase of $0.27 per pound in DET notional royalties as a result of higher copper prices and $0.03 per pound in depreciation, offset by a decrease of $0.13 per pound in cash cost. All-in sustaining costs increased to $3.85 per pound from $3.72 per pound in Q3 2024 due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate G&A expenses, offset by a decrease of $0.06 in sustaining CapEx. Moving on to the statement of financial position. On September 30, 2025, the company held cash and cash equivalents of $28 million and restricted cash of $3.1 million, with a working capital of $0.9 million, up from a working capital deficiency of $6.5 million on December 31, 2024. Total cost increased to $3.71 per pound, up $0.17 from Q3 2024's $3.54 per pound. total cost increased to $3.71 per pound up $0.17 from q3 2024's $3.54 per pound This was the result of an increase of $0.27 per pound in DET notional royalties as a result of higher copper prices and $0.03 per pound in depreciation, offset by a decrease of $0.13 per pound in cash cost. this was the result of an increase of $0.27 per pound in det notional royalties as a result of higher copper prices and $0.03 per pound in depreciation offset by a decrease of $0.13 per pound in cash cost All-in sustaining costs increased to $3.85 per pound from $3.72 per pound in Q3 2024 due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate G&A expenses, offset by a decrease of $0.06 in sustaining CapEx. all-in sustaining costs increased to $3.85 per pound from $3.72 per pound in q3 2024 due to increases of $0.17 per pound in total costs and $0.02 per pound in corporate g&a expenses offset by a decrease of $0.06 in sustaining capex Moving on to the statement of financial position. moving on to the statement of financial position On September 30, 2025, the company held cash and cash equivalents of $28 million and restricted cash of $3.1 million, with a working capital of $0.9 million, up from a working capital deficiency of $6.5 million on December 31, 2024. on september 30 2025 the company held cash and cash equivalents of $28 million and restricted cash of $3.1 million with a working capital of $0.9 million up from a working capital deficiency of $6.5 million on december 31 2024 Trade and accounts payable decreased from $24.6 million as of December 31, 2024, to $20.2 million at the end of September 2025. Current income tax liabilities decreased from $8.5 million at the end of December to $0.1 million at September 30, 2025, due mostly to the $8 million in taxes related to 2024 that were paid at the end of April when MVC's annual tax declaration was filed in Chile. For 2025, MVC's income tax at the end of September is almost fully offset by the $5.1 million in monthly tax installment payments made by MVC during the year. You will notice that the company's debt was shown as $7.3 million net of transaction fees. This debt was fully paid in October. This puts Amerigo in a zero debt position, providing additional free cash flow capacity. Trade and accounts payable decreased from $24.6 million as of December 31, 2024, to $20.2 million at the end of September 2025. trade and accounts payable decreased from $24.6 million as of december 31 2024 to $20.2 million at the end of september 2025 Current income tax liabilities decreased from $8.5 million at the end of December to $0.1 million at September 30, 2025, due mostly to the $8 million in taxes related to 2024 that were paid at the end of April when MVC's annual tax declaration was filed in Chile. current income tax liabilities decreased from $8.5 million at the end of december to $0.1 million at september 30 2025 due mostly to the $8 million in taxes related to 2024 that were paid at the end of april when mvc's annual tax declaration was filed in chile For 2025, MVC's income tax at the end of September is almost fully offset by the $5.1 million in monthly tax installment payments made by MVC during the year. for 2025 mvc's income tax at the end of september is almost fully offset by the $5.1 million in monthly tax installment payments made by mvc during the year You will notice that the company's debt was shown as $7.3 million net of transaction fees. you will notice that the company's debt was shown as $7.3 million net of transaction fees This debt was fully paid in October. this debt was fully paid in october This puts Amerigo in a zero debt position, providing additional free cash flow capacity. this puts amerigo in a zero debt position providing additional free cash flow capacity Regarding cash flows during the quarter, Amerigo generated $12.4 million in cash flow from operations. Net operating cash flow, which includes the changes in non-cash working capital, was $11.8 million. In terms of cash during the quarter, $1.3 million was used for investing activities, in other words, for CapEx payments, and $5.7 million was used in financing activities. These financing activities included Amerigo's quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash, which was used to pay the debt in October, leaving the company with a nil balance in restricted cash going forward. Briefly touching on the results for the first three quarters of the year, our cash cost for the nine months ended September 30, 2025, was $1.93 per pound and was in line with guidance. Regarding cash flows during the quarter, Amerigo generated $12.4 million in cash flow from operations. regarding cash flows during the quarter amerigo generated $12.4 million in cash flow from operations Net operating cash flow, which includes the changes in non-cash working capital, was $11.8 million. net operating cash flow which includes the changes in non-cash working capital was $11.8 million In terms of cash during the quarter, $1.3 million was used for investing activities, in other words, for CapEx payments, and $5.7 million was used in financing activities. in terms of cash during the quarter $1.3 million was used for investing activities in other words for capex payments and $5.7 million was used in financing activities These financing activities included Amerigo's quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash, which was used to pay the debt in October, leaving the company with a nil balance in restricted cash going forward. these financing activities included amerigo's quarterly dividend payment of $3.5 million and a transfer of $2.2 million to restricted cash which was used to pay the debt in october leaving the company with a nil balance in restricted cash going forward Briefly touching on the results for the first three quarters of the year, our cash cost for the nine months ended September 30, 2025, was $1.93 per pound and was in line with guidance. briefly touching on the results for the first three quarters of the year our cash cost for the nine months ended september 30 2025 was $1.93 per pound and was in line with guidance Our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. Our normalized cash cost guidance excludes the signing bonus paid in Q4 in connection with MVC's three-year collective labor agreement with the operators' union. The agreement will be effective until October 29, 2028, and MVC will pay $4 million to its operators in Q4 2025 as a signing bonus. In 2025, MVC is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustaining CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. In the first three quarters of 2025, CapEx additions were $7.8 million and CapEx payments were $9.5 million. We currently expect actual CapEx to trend slightly below our annual CapEx guidance. Our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. our forecast indicates that we're on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound Our normalized cash cost guidance excludes the signing bonus paid in Q4 in connection with MVC's three-year collective labor agreement with the operators' union. our normalized cash cost guidance excludes the signing bonus paid in q4 in connection with mvc's three-year collective labor agreement with the operators' union The agreement will be effective until October 29, 2028, and MVC will pay $4 million to its operators in Q4 2025 as a signing bonus. the agreement will be effective until october 29 2028 and mvc will pay $4 million to its operators in q4 2025 as a signing bonus In 2025, MVC is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustaining CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. in 2025 mvc is expected to incur capex of $13 million of which $4.4 million is optimization capex $4.4 million is sustaining capex and $4.2 million is capex associated with the annual plant maintenance shutdown and strategic spares In the first three quarters of 2025, CapEx additions were $7.8 million and CapEx payments were $9.5 million. in the first three quarters of 2025 capex additions were $7.8 million and capex payments were $9.5 million We currently expect actual CapEx to trend slightly below our annual CapEx guidance. we currently expect actual capex to trend slightly below our annual capex guidance We will report Amerigo's full year 2025 financial results in February 2026 and want to thank you for your continued interest in the company. We will now take questions from call participants. We will report Amerigo's full year 2025 financial results in February 2026 and want to thank you for your continued interest in the company. we will report amerigo's full year 2025 financial results in february 2026 and want to thank you for your continued interest in the company We will now take questions from call participants. we will now take questions from call participants

Speaker 1: Operator, can you start on the Q&A? Operator, can you start on the Q&A? operator can you start on the q&a

Speaker 5: Yes, sorry. I must have been on mute. Sorry about that. The Q&A will begin now, and your first question will be coming from Dale Miller, an investor. Dale, please go ahead. Yes, sorry. yes sorry I must have been on mute. i must have been on mute Sorry about that. sorry about that The Q&A will begin now, and your first question will be coming from Dale Miller, an investor. the q&a will begin now and your first question will be coming from dale miller an investor Dale, please go ahead. dale please go ahead

Speaker 4: Hi, Aurora. I think you and your team have done an outstanding job, both from the miners all the way through your organization. However, I do have one minor question. I am surprised that the board of directors has been selling actively, stocks as opposed to buying stocks. Now, I know you can't explain why they're selling in particular. Hi, Aurora. hi aurora I think you and your team have done an outstanding job, both from the miners all the way through your organization. i think you and your team have done an outstanding job both from the miners all the way through your organization However, I do have one minor question. however i do have one minor question I am surprised that the board of directors has been selling actively, stocks as opposed to buying stocks. i am surprised that the board of directors has been selling actively stocks as opposed to buying stocks Now, I know you can't explain why they're selling in particular. now i know you can't explain why they're selling in particular The picture ahead seems very rosy with the debt being paid down to zero, three-year agreement, and copper prices on a trend upward. I don't understand the lack of interest in buying your stock from the board of directors. Thank you. Again, thank you for your total organization and your efforts. The picture ahead seems very rosy with the debt being paid down to zero, three-year agreement, and copper prices on a trend upward. the picture ahead seems very rosy with the debt being paid down to zero three-year agreement and copper prices on a trend upward I don't understand the lack of interest in buying your stock from the board of directors. i don't understand the lack of interest in buying your stock from the board of directors Thank you. thank you Again, thank you for your total organization and your efforts. again thank you for your total organization and your efforts

Speaker 1: Dale, thank you for your question. It is a good question. You mentioned that there are directors selling. We have indications of two of seven directors with sale transactions this year. Just to complete the picture here, five directors have not sold anything. In fact, most of the directors, when we acquire additional shares through the exercise of In the Money options, we're holders of those shares and we keep them. Dale, thank you for your question. dale thank you for your question It is a good question. it is a good question You mentioned that there are directors selling. you mentioned that there are directors selling We have indications of two of seven directors with sale transactions this year. we have indications of two of seven directors with sale transactions this year Just to complete the picture here, five directors have not sold anything. just to complete the picture here five directors have not sold anything In fact, most of the directors, when we acquire additional shares through the exercise of In the Money options, we're holders of those shares and we keep them. in fact most of the directors when we acquire additional shares through the exercise of in the money options we're holders of those shares and we keep them If there are individual sale events from independent directors, they have their own personal reasons to do so, and it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company. There was one significant transaction by a longtime director that has been. A thorough supporter of the company through thick and skin, and he had some sales to make for personal reasons. In the process of being a decade or longer director, there may be times when you have to sell shares. I wouldn't take it out of context. I wouldn't misinterpret it as a sign of a misalignment or lack of interest in the company. There are personal requirements for either tax planning or estate planning or diversification that come through from time to time, and we have to acknowledge them. If there are individual sale events from independent directors, they have their own personal reasons to do so, and it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company. if there are individual sale events from independent directors they have their own personal reasons to do so and it would be probably fair to see them in the context of their total holdings and the time that they have held shares of the company There was one significant transaction by a longtime director that has been. there was one significant transaction by a longtime director that has been A thorough supporter of the company through thick and skin, and he had some sales to make for personal reasons. a thorough supporter of the company through thick and skin and he had some sales to make for personal reasons In the process of being a decade or longer director, there may be times when you have to sell shares. in the process of being a decade or longer director there may be times when you have to sell shares I wouldn't take it out of context. i wouldn't take it out of context I wouldn't misinterpret it as a sign of a misalignment or lack of interest in the company. i wouldn't misinterpret it as a sign of a misalignment or lack of interest in the company There are personal requirements for either tax planning or estate planning or diversification that come through from time to time, and we have to acknowledge them. there are personal requirements for either tax planning or estate planning or diversification that come through from time to time and we have to acknowledge them In overall terms, when you're looking at the overall picture, there is obviously a keen interest in directors, including myself and including the founder of a company, Dr. Steinkrug, to hold on to our shares for the long term. We are happy recipients of the CRS benefits as well. I hope that answers the question. In overall terms, when you're looking at the overall picture, there is obviously a keen interest in directors, including myself and including the founder of a company, Dr. Steinkrug, to hold on to our shares for the long term. in overall terms when you're looking at the overall picture there is obviously a keen interest in directors including myself and including the founder of a company dr steinkrug to hold on to our shares for the long term We are happy recipients of the CRS benefits as well. we are happy recipients of the crs benefits as well I hope that answers the question. i hope that answers the question

Speaker 4: Yes, thank you. Yes, thank you. yes thank you

Speaker 5: Thank you. Your next question comes from Terry Fisher with CIBC. Please go ahead. Thank you. thank you Your next question comes from Terry Fisher with CIBC. your next question comes from terry fisher with cibc Please go ahead. please go ahead

Speaker 7: Yes, congratulations again on another terrific quarter, particularly given the problems at El Teniente. I guess we're getting used to that now. It's almost boring, these wonderful quarters that keep coming out. I hope you're not building expectations too high. We're very happy. Anyway, I only have two quick ones for you. Number one, MOLY's becoming even more important these days, and it's been notoriously volatile over the years. Yes, congratulations again on another terrific quarter, particularly given the problems at El Teniente. yes congratulations again on another terrific quarter particularly given the problems at el teniente I guess we're getting used to that now. i guess we're getting used to that now It's almost boring, these wonderful quarters that keep coming out. it's almost boring these wonderful quarters that keep coming out I hope you're not building expectations too high. i hope you're not building expectations too high We're very happy. we're very happy Anyway, I only have two quick ones for you. anyway i only have two quick ones for you Number one, MOLY's becoming even more important these days, and it's been notoriously volatile over the years. number one moly's becoming even more important these days and it's been notoriously volatile over the years I'm wondering if you could give us a little bit of color on the MOLY outlook for the MOLY market. My other question, I'm just going to table both questions, is that I heard, and I can't remember the source, that Codelco is looking at maybe under some pressure, perhaps from the government, to get a bit more active with CapEx and adopting more modern technology in order to expand production and also to reduce the risk of accidents and so on. I'm wondering if that is true, and if so, would it open up any further opportunities for Amerigo? I'm wondering if you could give us a little bit of color on the MOLY outlook for the MOLY market. i'm wondering if you could give us a little bit of color on the moly outlook for the moly market My other question, I'm just going to table both questions, is that I heard, and I can't remember the source, that Codelco is looking at maybe under some pressure, perhaps from the government, to get a bit more active with CapEx and adopting more modern technology in order to expand production and also to reduce the risk of accidents and so on. my other question i'm just going to table both questions is that i heard and i can't remember the source that codelco is looking at maybe under some pressure perhaps from the government to get a bit more active with capex and adopting more modern technology in order to expand production and also to reduce the risk of accidents and so on I'm wondering if that is true, and if so, would it open up any further opportunities for Amerigo? i'm wondering if that is true and if so would it open up any further opportunities for amerigo

Speaker 1: Terry, on the MOLY market commentary, it has been quite stable for the last years. We saw a price spike in MOLY prices two and a half years ago to around the range of $30 per pound. Terry, on the MOLY market commentary, it has been quite stable for the last years. terry on the moly market commentary it has been quite stable for the last years We saw a price spike in MOLY prices two and a half years ago to around the range of $30 per pound. we saw a price spike in moly prices two and a half years ago to around the range of $30 per pound If you look at our numbers for Q3, we had an average price of $24 per pound, which is really good. We had budgeted a lower number than that, so we're happy with the results. The MOLY market is a volatile market. No one seems to understand it. A bit of a black box. We don't consider ourselves experts on MOLY. You will see that I don't waste any of the shareholders' time with my commentary on the MOLY market because there is really nothing I can contribute to it. We try to dig for as much information as we can, and even from our clients, we don't get very clear responses. We'll take it as positive when we see the, sorry, the price appreciations that we saw in Q3. It's a good additional layer to have in the business, but that's about it. If you look at our numbers for Q3, we had an average price of $24 per pound, which is really good. if you look at our numbers for q3 we had an average price of $24 per pound which is really good We had budgeted a lower number than that, so we're happy with the results. we had budgeted a lower number than that so we're happy with the results The MOLY market is a volatile market. the moly market is a volatile market No one seems to understand it. no one seems to understand it A bit of a black box. a bit of a black box We don't consider ourselves experts on MOLY. we don't consider ourselves experts on moly You will see that I don't waste any of the shareholders' time with my commentary on the MOLY market because there is really nothing I can contribute to it. you will see that i don't waste any of the shareholders' time with my commentary on the moly market because there is really nothing i can contribute to it We try to dig for as much information as we can, and even from our clients, we don't get very clear responses. we try to dig for as much information as we can and even from our clients we don't get very clear responses We'll take it as positive when we see the, sorry, the price appreciations that we saw in Q3. we'll take it as positive when we see the sorry the price appreciations that we saw in q3 It's a good additional layer to have in the business, but that's about it. it's a good additional layer to have in the business but that's about it I think that we have to remain focused on the copper operation, on the copper outlook, and consider MOLY a good addition that we really don't have a lot of control on. With respect to your second question, the only thing I can comment on was a recent press article where the Chair of Codelco was explaining different initiatives that they're following up in terms of automation, specifically for the deeper levels of their underground mines, which, of course, is making a reference to El Teniente. That's good news. The fact that they are looking actively and investing as they have done in the past is not something new. I think they're just expanding or magnifying their efforts, but they're not initiating their efforts in terms of automation. That's all good news, that the strength of Codelco could represent additional opportunities for us in the future. I think that we have to remain focused on the copper operation, on the copper outlook, and consider MOLY a good addition that we really don't have a lot of control on. i think that we have to remain focused on the copper operation on the copper outlook and consider moly a good addition that we really don't have a lot of control on With respect to your second question, the only thing I can comment on was a recent press article where the Chair of Codelco was explaining different initiatives that they're following up in terms of automation, specifically for the deeper levels of their underground mines, which, of course, is making a reference to El Teniente. with respect to your second question the only thing i can comment on was a recent press article where the chair of codelco was explaining different initiatives that they're following up in terms of automation specifically for the deeper levels of their underground mines which of course is making a reference to el teniente That's good news. that's good news The fact that they are looking actively and investing as they have done in the past is not something new. the fact that they are looking actively and investing as they have done in the past is not something new I think they're just expanding or magnifying their efforts, but they're not initiating their efforts in terms of automation. i think they're just expanding or magnifying their efforts but they're not initiating their efforts in terms of automation That's all good news, that the strength of Codelco could represent additional opportunities for us in the future. that's all good news that the strength of codelco could represent additional opportunities for us in the future That's all I can say about it. That's all I can say about it. that's all i can say about it

Speaker 7: Okay, that's great. Muchas gracias. Okay, that's great. okay that's great Muchas gracias. muchas gracias

Speaker 1: Thank you. Thank you. thank you

Speaker 5: Thank you. As a reminder, if you would like to ask a question, please press star one. Your next question comes from Ben Pirie with Atrium Research. Please go ahead. Thank you. thank you As a reminder, if you would like to ask a question, please press star one. as a reminder if you would like to ask a question please press star one Your next question comes from Ben Pirie with Atrium Research. your next question comes from ben pirie with atrium research Please go ahead. please go ahead

Speaker 8: Hi, Aurora. Congrats on another strong quarter considering the shutdown. Certainly great to see the debt being fully paid down and the dividend increase. Just on the shutdown quickly, I think I can speak for most investors that we're pleased with how you managed and minimized the production loss, or at least the loss in tailings flow. Can you actually just touch on what initiatives the company took to minimize that impact and just where we're at in terms of that fresh tailings flow coming back online? Hi, Aurora. hi aurora Congrats on another strong quarter considering the shutdown. congrats on another strong quarter considering the shutdown Certainly great to see the debt being fully paid down and the dividend increase. certainly great to see the debt being fully paid down and the dividend increase Just on the shutdown quickly, I think I can speak for most investors that we're pleased with how you managed and minimized the production loss, or at least the loss in tailings flow. just on the shutdown quickly i think i can speak for most investors that we're pleased with how you managed and minimized the production loss or at least the loss in tailings flow Can you actually just touch on what initiatives the company took to minimize that impact and just where we're at in terms of that fresh tailings flow coming back online? can you actually just touch on what initiatives the company took to minimize that impact and just where we're at in terms of that fresh tailings flow coming back online

Speaker 1: Yes. Thanks for the question, Ben. It was a challenge that the team at MVC faced quite well. Yes. yes Thanks for the question, Ben. thanks for the question ben It was a challenge that the team at MVC faced quite well. it was a challenge that the team at mvc faced quite well Our production impact was twofold. One was the immediate one for 10 days of not receiving fresh tailings at MVC. Immediately, we ramped up on the ground the processing of historic tailings to minimize the impact. To the extent that that was done quickly and continues in place to date, that is one of the significant aspects that we did. In addition to that, we have taken advantage of having more plant capacity. The most volume-centric part of our operation are the fresh tailings, and that's where we get most of the volume, and it is the feed that takes up most of the real estate in our concentrator plant. To the extent that we have had some of that freed up, we've been able to tweak part of the operation in terms of improving classification. We have less material to classify. Our production impact was twofold. our production impact was twofold One was the immediate one for 10 days of not receiving fresh tailings at MVC. one was the immediate one for 10 days of not receiving fresh tailings at mvc Immediately, we ramped up on the ground the processing of historic tailings to minimize the impact. immediately we ramped up on the ground the processing of historic tailings to minimize the impact To the extent that that was done quickly and continues in place to date, that is one of the significant aspects that we did. to the extent that that was done quickly and continues in place to date that is one of the significant aspects that we did In addition to that, we have taken advantage of having more plant capacity. in addition to that we have taken advantage of having more plant capacity The most volume-centric part of our operation are the fresh tailings, and that's where we get most of the volume, and it is the feed that takes up most of the real estate in our concentrator plant. the most volume-centric part of our operation are the fresh tailings and that's where we get most of the volume and it is the feed that takes up most of the real estate in our concentrator plant To the extent that we have had some of that freed up, we've been able to tweak part of the operation in terms of improving classification. to the extent that we have had some of that freed up we've been able to tweak part of the operation in terms of improving classification We have less material to classify. we have less material to classify We have very good dilution at the moment that further increases our classification. We are redirecting some of the flows within the concentrator, and that has also allowed for increased residence times, which have a positive impact on recovery. We also have two projects that have come online which were part of our optimization projects for this year, which included improvements to the cascade operation, and that has also contributed to increased recovery. We have lower volume of fresh. We are compensating for that with more processing of historic tailings, but we have been able to increase recoveries of fresh, and that is one of the drivers that has helped us mitigate production losses. In fact, I think it's fair to state that we only had a production impact during the month of August. September was back to normal, and we have strong results as well for October. We have very good dilution at the moment that further increases our classification. we have very good dilution at the moment that further increases our classification We are redirecting some of the flows within the concentrator, and that has also allowed for increased residence times, which have a positive impact on recovery. we are redirecting some of the flows within the concentrator and that has also allowed for increased residence times which have a positive impact on recovery We also have two projects that have come online which were part of our optimization projects for this year, which included improvements to the cascade operation, and that has also contributed to increased recovery. we also have two projects that have come online which were part of our optimization projects for this year which included improvements to the cascade operation and that has also contributed to increased recovery We have lower volume of fresh. we have lower volume of fresh We are compensating for that with more processing of historic tailings, but we have been able to increase recoveries of fresh, and that is one of the drivers that has helped us mitigate production losses. we are compensating for that with more processing of historic tailings but we have been able to increase recoveries of fresh and that is one of the drivers that has helped us mitigate production losses In fact, I think it's fair to state that we only had a production impact during the month of August. in fact i think it's fair to state that we only had a production impact during the month of august September was back to normal, and we have strong results as well for October. september was back to normal and we have strong results as well for october

Speaker 8: Great, thank you. Certainly impressive considering the small drop in your guidance for the annual guidance there. Just sort of reflecting on Q1 and Q2 in terms of share buybacks, we saw a lot of action on the NCIB in the first half of the year, but little to none in Q3. Was this primarily because of the shutdown, and you just wanted to hold back a little cash in the till? Or can you provide a little bit of color into that Q3 drop on the buybacks? Great, thank you. great thank you Certainly impressive considering the small drop in your guidance for the annual guidance there. certainly impressive considering the small drop in your guidance for the annual guidance there Just sort of reflecting on Q1 and Q2 in terms of share buybacks, we saw a lot of action on the NCIB in the first half of the year, but little to none in Q3. just sort of reflecting on q1 and q2 in terms of share buybacks we saw a lot of action on the ncib in the first half of the year but little to none in q3 Was this primarily because of the shutdown, and you just wanted to hold back a little cash in the till? was this primarily because of the shutdown and you just wanted to hold back a little cash in the till Or can you provide a little bit of color into that Q3 drop on the buybacks? or can you provide a little bit of color into that q3 drop on the buybacks

Speaker 1: I think it's difficult to try to divide the activity on buybacks on a quarter-on-quarter basis. There are a series of factors that go into play as to how to allocate the surplus cash to additional distributions. I think it's difficult to try to divide the activity on buybacks on a quarter-on-quarter basis. i think it's difficult to try to divide the activity on buybacks on a quarter-on-quarter basis There are a series of factors that go into play as to how to allocate the surplus cash to additional distributions. there are a series of factors that go into play as to how to allocate the surplus cash to additional distributions As you know, one of our key commitments, the minimal commitment we have with respect to buying back shares, is not to have dilution for shareholders year on year. It makes sense to get your commitments out of the way as soon as you can in the year, and so there was significantly more activity. In fact, in the second quarter, we had completed our sort of weaker quarter of the year in terms of production associated with maintenance shutdowns. Copper prices were doing good. We were committed to buying back at least the amount of shares that were being issued on exercise of options, and we still had six months ahead of us to continue with the key objective of reducing debt. We were not in a hurry to repay the debt in the second quarter. As you know, one of our key commitments, the minimal commitment we have with respect to buying back shares, is not to have dilution for shareholders year on year. as you know one of our key commitments the minimal commitment we have with respect to buying back shares is not to have dilution for shareholders year on year It makes sense to get your commitments out of the way as soon as you can in the year, and so there was significantly more activity. it makes sense to get your commitments out of the way as soon as you can in the year and so there was significantly more activity In fact, in the second quarter, we had completed our sort of weaker quarter of the year in terms of production associated with maintenance shutdowns. in fact in the second quarter we had completed our sort of weaker quarter of the year in terms of production associated with maintenance shutdowns Copper prices were doing good. copper prices were doing good We were committed to buying back at least the amount of shares that were being issued on exercise of options, and we still had six months ahead of us to continue with the key objective of reducing debt. we were committed to buying back at least the amount of shares that were being issued on exercise of options and we still had six months ahead of us to continue with the key objective of reducing debt We were not in a hurry to repay the debt in the second quarter. we were not in a hurry to repay the debt in the second quarter Come the third quarter, we had this interruption in the month of August, which always makes us more careful about managing the capital. We're always careful, but even more careful. We also saw the opportunity as copper prices started to strengthen in September of basically taking care of the debt first in the third quarter. There are a series of annual objectives. How you organize them throughout the year depends on a number of circumstances, a lot of management judgment and board decisions also have to be considered in terms of the intra-quarter allocation of the funds. I think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one, but just the general annual path of continuing to return cash to shareholders. Come the third quarter, we had this interruption in the month of August, which always makes us more careful about managing the capital. come the third quarter we had this interruption in the month of august which always makes us more careful about managing the capital We're always careful, but even more careful. we're always careful but even more careful We also saw the opportunity as copper prices started to strengthen in September of basically taking care of the debt first in the third quarter. we also saw the opportunity as copper prices started to strengthen in september of basically taking care of the debt first in the third quarter There are a series of annual objectives. there are a series of annual objectives How you organize them throughout the year depends on a number of circumstances, a lot of management judgment and board decisions also have to be considered in terms of the intra-quarter allocation of the funds. how you organize them throughout the year depends on a number of circumstances a lot of management judgment and board decisions also have to be considered in terms of the intra-quarter allocation of the funds I think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one, but just the general annual path of continuing to return cash to shareholders. i think what's important to consider here is not so much the comparison of activity of one quarter to the preceding one but just the general annual path of continuing to return cash to shareholders We know our timing, so we have a good view on what's happening around us and ahead of us. We try to organize it as best as we can. The general objective is the important one, and that is do what you said you're going to do, produce what you said you were going to produce, and keep returning that additional cash to shareholders. We know our timing, so we have a good view on what's happening around us and ahead of us. we know our timing so we have a good view on what's happening around us and ahead of us We try to organize it as best as we can. we try to organize it as best as we can The general objective is the important one, and that is do what you said you're going to do, produce what you said you were going to produce, and keep returning that additional cash to shareholders. the general objective is the important one and that is do what you said you're going to do produce what you said you were going to produce and keep returning that additional cash to shareholders

Speaker 8: Absolutely. I think you made the right call with paying down the debt as shareholders clearly liked that news yesterday with the stock being up so much. I'm just staying on this line of questioning, and I'll be quick here so other people can get in the mix. Just around the conservative approach you just mentioned with allocating some of your cash flow. Absolutely. absolutely I think you made the right call with paying down the debt as shareholders clearly liked that news yesterday with the stock being up so much. i think you made the right call with paying down the debt as shareholders clearly liked that news yesterday with the stock being up so much I'm just staying on this line of questioning, and I'll be quick here so other people can get in the mix. i'm just staying on this line of questioning and i'll be quick here so other people can get in the mix Just around the conservative approach you just mentioned with allocating some of your cash flow. just around the conservative approach you just mentioned with allocating some of your cash flow Obviously, with paying down this debt, now you have additional cash flow, and in the press release yesterday, you mentioned roughly 50% of that new cash flow will go to the increased dividend. Can you just touch on what you guys plan to do with that remaining 50%? That sort of goes with the conservative approach. I think you're taking your time with that decision. Obviously, with paying down this debt, now you have additional cash flow, and in the press release yesterday, you mentioned roughly 50% of that new cash flow will go to the increased dividend. obviously with paying down this debt now you have additional cash flow and in the press release yesterday you mentioned roughly 50% of that new cash flow will go to the increased dividend Can you just touch on what you guys plan to do with that remaining 50%? can you just touch on what you guys plan to do with that remaining 50% That sort of goes with the conservative approach. that sort of goes with the conservative approach I think you're taking your time with that decision. i think you're taking your time with that decision

Speaker 1: Yes. Thanks for the question, Ben. To use some numbers and provide the context here, we were amortizing our debt at the tune of $7 million in principal payments per year. Last year, our debt expense was $2 million. We have in front of us a figure of $9 million that is being freed up. The decision of allocating essentially 50% of that, the additional $0.04 Canadian in dividends, will have a cost of $4.7 million on an annual basis. Yes. yes Thanks for the question, Ben. thanks for the question ben To use some numbers and provide the context here, we were amortizing our debt at the tune of $7 million in principal payments per year. to use some numbers and provide the context here we were amortizing our debt at the tune of $7 million in principal payments per year Last year, our debt expense was $2 million. last year our debt expense was $2 million We have in front of us a figure of $9 million that is being freed up. we have in front of us a figure of $9 million that is being freed up The decision of allocating essentially 50% of that, the additional $0.04 Canadian in dividends, will have a cost of $4.7 million on an annual basis. the decision of allocating essentially 50% of that the additional $0.04 canadian in dividends will have a cost of $4.7 million on an annual basis Give or take, 50% of the cash that has been freed up now has a placeholder, and that placeholder is the increased quarterly dividend. The cash that remains remains as cash that is available to the company. The company does not have intensive capital requirements. That has been the stable position and one of the premises of having the CRS. The obvious avenue of allocation would be additional distributions, which, as you know, are performance dividends and buybacks. I hope that answers the question. We wanted to have a clear path of showing the shareholders how that cash was going to be allocated. Now 50% of it has been already committed in what we're seeing is a structural change through the quarterly dividend increase. The rest remains to be allocated in the Amerigo normal course of business. Let's call it that. Give or take, 50% of the cash that has been freed up now has a placeholder, and that placeholder is the increased quarterly dividend. give or take 50% of the cash that has been freed up now has a placeholder and that placeholder is the increased quarterly dividend The cash that remains remains as cash that is available to the company. the cash that remains remains as cash that is available to the company The company does not have intensive capital requirements. the company does not have intensive capital requirements That has been the stable position and one of the premises of having the CRS. that has been the stable position and one of the premises of having the crs The obvious avenue of allocation would be additional distributions, which, as you know, are performance dividends and buybacks. the obvious avenue of allocation would be additional distributions which as you know are performance dividends and buybacks I hope that answers the question. i hope that answers the question We wanted to have a clear path of showing the shareholders how that cash was going to be allocated. we wanted to have a clear path of showing the shareholders how that cash was going to be allocated Now 50% of it has been already committed in what we're seeing is a structural change through the quarterly dividend increase. now 50% of it has been already committed in what we're seeing is a structural change through the quarterly dividend increase The rest remains to be allocated in the Amerigo normal course of business. the rest remains to be allocated in the amerigo normal course of business Let's call it that. let's call it that

Speaker 8: Understood. Okay. Thank you. Looking forward to seeing that. That's all I had today. Understood. understood Okay. okay Thank you. thank you Looking forward to seeing that. looking forward to seeing that That's all I had today. that's all i had today

Speaker 5: Your next question comes from John Polcari with Mutual of America Capital Management. Please go ahead. Your next question comes from John Polcari with Mutual of America Capital Management. your next question comes from john polcari with mutual of america capital management Please go ahead. please go ahead

Speaker 3: Thank you. You, along with everybody else, congratulations on achieving key strategic objectives. I really only have one question, and that is, what are your thoughts regarding royalty payments as the price escalates, price of copper escalates, perhaps into the mid to high $5.00 per pound range or maybe even higher? I think the agreement on the royalties, when it was originally constructed, had limits on the upside. Can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate? Thank you. thank you You, along with everybody else, congratulations on achieving key strategic objectives. you along with everybody else congratulations on achieving key strategic objectives I really only have one question, and that is, what are your thoughts regarding royalty payments as the price escalates, price of copper escalates, perhaps into the mid to high $5.00 per pound range or maybe even higher? i really only have one question and that is what are your thoughts regarding royalty payments as the price escalates price of copper escalates perhaps into the mid to high $5.00 per pound range or maybe even higher I think the agreement on the royalties, when it was originally constructed, had limits on the upside. i think the agreement on the royalties when it was originally constructed had limits on the upside Can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate? can you just address that or give me your thoughts on where that would go and maybe any changes to the agreement as prices escalate

Speaker 1: John, that's a good question. Let me back up a little bit here to give you a well-rounded answer. John, that's a good question. john that's a good question Let me back up a little bit here to give you a well-rounded answer. let me back up a little bit here to give you a well-rounded answer The royalty is essentially the compensation that we give El Teniente for letting us work with their tailings. It is a significant driver of the success of the long-term relationship between MVC and El Teniente because it basically provides a mechanism for. Sharing of the economic benefits of the business between the purveyor of the tailings and the processor of the tailings. Our agreement has both lower and higher copper limits, which are separate for the fresh tailings and for the historic tailings. The limit for the fresh tailings is $4.80 per pound, and the limit for the historic tailings is $5.50 per pound. When we are outside of these ranges for two consecutive months, and there is also an indication that these prices will continue, we basically have to do one thing and one thing only, and that is to discuss the continuation of the royalty scale. The royalty is essentially the compensation that we give El Teniente for letting us work with their tailings. the royalty is essentially the compensation that we give el teniente for letting us work with their tailings It is a significant driver of the success of the long-term relationship between MVC and El Teniente because it basically provides a mechanism for. it is a significant driver of the success of the long-term relationship between mvc and el teniente because it basically provides a mechanism for Sharing of the economic benefits of the business between the purveyor of the tailings and the processor of the tailings. sharing of the economic benefits of the business between the purveyor of the tailings and the processor of the tailings Our agreement has both lower and higher copper limits, which are separate for the fresh tailings and for the historic tailings. our agreement has both lower and higher copper limits which are separate for the fresh tailings and for the historic tailings The limit for the fresh tailings is $4.80 per pound, and the limit for the historic tailings is $5.50 per pound. the limit for the fresh tailings is $4.80 per pound and the limit for the historic tailings is $5.50 per pound When we are outside of these ranges for two consecutive months, and there is also an indication that these prices will continue, we basically have to do one thing and one thing only, and that is to discuss the continuation of the royalty scale. when we are outside of these ranges for two consecutive months and there is also an indication that these prices will continue we basically have to do one thing and one thing only and that is to discuss the continuation of the royalty scale It is a sliding scale. The higher the copper price, the higher the royalty factor with El Teniente. It is not a full renegotiation of anything else other than the royalty scale. We expect that, should these conditions arise. In fact, we're almost completing October, and October is the first time in history where we've seen an average LME copper price over $4.80. If this condition were to continue in November, then starting in December, but not before then, we have to discuss with El Teniente the continuation of the royalty factor only. I hope that answers your question. It is a sliding scale. it is a sliding scale The higher the copper price, the higher the royalty factor with El Teniente. the higher the copper price the higher the royalty factor with el teniente It is not a full renegotiation of anything else other than the royalty scale. it is not a full renegotiation of anything else other than the royalty scale We expect that, should these conditions arise. we expect that should these conditions arise In fact, we're almost completing October, and October is the first time in history where we've seen an average LME copper price over $4.80. in fact we're almost completing october and october is the first time in history where we've seen an average lme copper price over $4.80 If this condition were to continue in November, then starting in December, but not before then, we have to discuss with El Teniente the continuation of the royalty factor only. if this condition were to continue in november then starting in december but not before then we have to discuss with el teniente the continuation of the royalty factor only I hope that answers your question. i hope that answers your question

Speaker 3: Yes. Thank you. Just once again, I'm sure I speak for everyone on Jawbalder. Yes. yes Thank you. thank you Just once again, I'm sure I speak for everyone on Jawbalder. just once again i'm sure i speak for everyone on jawbalder

Speaker 5: There are no further questions at this time. I will now turn the call over to Aurora Davidson for closing remarks. Please continue. There are no further questions at this time. there are no further questions at this time I will now turn the call over to Aurora Davidson for closing remarks. i will now turn the call over to aurora davidson for closing remarks Please continue. please continue

Speaker 1: Thank you. Thank you for attending today's call. Thank you. thank you Thank you for attending today's call. thank you for attending today's call The recording and the script will be available on the Amerigo website in the next few days. This is our last earnings call of the year, so we wish you all the best as we wrap up 2025 and look forward to our next earnings call in February of 2026. Please visit our website regularly for updates. Feel free to contact us with any questions or convenience. Graham, Carmen, and myself, we're always there on the other side of the email or the phone to answer any questions. Thank you for your continued interest in Amerigo. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. The recording and the script will be available on the Amerigo website in the next few days. the recording and the script will be available on the amerigo website in the next few days This is our last earnings call of the year, so we wish you all the best as we wrap up 2025 and look forward to our next earnings call in February of 2026. this is our last earnings call of the year so we wish you all the best as we wrap up 2025 and look forward to our next earnings call in february of 2026 Please visit our website regularly for updates. please visit our website regularly for updates Feel free to contact us with any questions or convenience. feel free to contact us with any questions or convenience Graham, Carmen, and myself, we're always there on the other side of the email or the phone to answer any questions. graham carmen and myself we're always there on the other side of the email or the phone to answer any questions Thank you for your continued interest in Amerigo. thank you for your continued interest in amerigo Ladies and gentlemen, this concludes today's conference call. ladies and gentlemen this concludes today's conference call Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect