Amerigo Resources Ltd — Call Transcript 2025

Good evening. My name is Joanna, and I will be your conference cooperator today. At this time, I would like to welcome everyone to the Amerigo Resources econd Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the formal remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Thank you. Mr. Graham Farrell of North Star Investor Relations, you may begin your conference. Thank you, operator. Good afternoon and welcome everyone to Amerigo's quarterly conference call to discuss the company's financial results for the second quarter of 2025. We appreciate you joining us today. This call will cover Amerigo's financial and operating results for the second quarter ended June 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's President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin our formal remarks, we'd 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 CRS. I will now hand the call over to Aurora Davidson. Please go ahead, Aurora. Thank you, Graham. You have come to learn this earnings call for the second quarter of 2025. We are pleased to report positive operational and expense outflows. Amerigo Resources has again demonstrated its operational excellence and capital allocation agility. We achieved strong copper production, managed cost effectively, and reinforced our commitment to shareholder returns. Our Chilean operation, Minera Valle Central, continued to operate consistently in the second quarter with no lost time excellence among our employees and no environmental incidents. In both of these operational performance categories, Minera Valle Central continues to extend its multi-year company records. Copper production was 15.5 million lbs, and margin on production was also robust. Copper production in the first half of the year had a 4.4% of Amerigo's annual guidance of 62.9 million lbs. Our yearly guidance takes into account our lower production in Q1, which was associated with the annual maintenance shutdown. Therefore, our production guidance remains in place. We also maintain strict cost goals, and our cash cost per pound declined to $1.82 in the second quarter. Our annual cash cost guidance of $1.93 per pound is also expected to be met. This guided cash cost target excludes the impact of Minera Valle Central's collective bargaining costs which was scheduled for October of this year. Collective bargaining occurs separately every three years at Minera Valle Central for our two collective agreements. Amerigo's annual performance in the second quarter included revenue of $50.9 million at an average Minera Valle Central copper price of $4.42 per pound. This price excludes positive price driven settlement of $700,000 on the first quarter sales. The quarter was $3.5 million with earnings per share of $0.05. By the end of the year, in line with Amerigo's capital return strategy, or CRS, a dividend of CA$0.06 per share was paid, corresponding to $3.5 million. Additionally, 3.1 million common shares were repurchased and canceled during the quarter at a weighted average price of CA$1.78 per share, representing $4 million. Year-to-date copper prices have been stronger than we budgeted, with Minera Valle Central receiving a copper price of $4.42 per pound compared to our revenue estimate of $4.15 per pound in 2025. We hope to see lower copper prices further shortly. The marginal price has been $20.22 per pound and is trending very close to our annual estimate of $21 per pound. The average exchange rate of the Chilean peso to the U.S. dollar in the first half of the year was CLP 955, also very close to our estimate of CLP 940. Following the close of the second quarter, our operational results for July have been very positive, with the price has also remained in July atf $4.40 per pound. If these conditions persist during August and September, we would aim to close the third quarter. Moving on to the U.S. corporate landscape, I would like to provide a quick summary. The corporate market is tight by using story levels. The U.S. has significant bridge forecasts for financials here are a few examples. Global mine corporate production is expected to close next quarter than the 2020 flat estimate in 2023. Factors such as mining increasingly requires resource depletion, political uncertainty, and declining costs as headwinds begin. In the high corporate market, you can see refrigerants, spot treatments, and refinery charges, also known as TCRCs. Interest rates and difficulty of finance tools exist during corporate finance to replace diverse methods of finance. Low TCRCs they now charge corporate miners indicates the desperation to secure an adequate supply. Estimating that 70% global smelter sources are currently unprofitable, this could lead to smelter shutdowns and cause a particular decrease in the growth of refined copper output. In 2023, refined copper supply grew by 4.2% and is now estimated to grow by only 1.3% in 2025. Refined product inventories in Germany and Shanghai have also fallen over this year. Concurrent with this stubborn supply scenario in the constantly increasing corporate market, demand has been a precipitation. The growth of AI data centers brings modernization and traditional demand. The events cause resources to go up. By putting together this planned demand outlook, a market deficit is expected by year-end and the International Energy Agency projects a market threat with resilient demand. This is bullish for corporate prices in Amerigo. In addition, tariffs on Jewish market resources are undefined or have undefined market partners and have impacted short-term corporate prices. During our last earnings call, I discussed the high arbitrage seen in the jewelry and copper prices as the governing market at a COMEX. This trend continues to go high in June. Under that scale, we are aside from copper. And that's the forex copper. However, the higher COMEX prices had a positive impact on our E.U. prices, which in turn had a positive effect on Amerigo. Pricing on copper relative to LME prices, with the average reaching over $0.45 per pound. This price divergence led to a massive redirection of copper inventories from the European Union to the U.S., driven both by speculation and structural factors. U.S. buyers scrambled to secure essential copper before August. On warrants, only under the suspicions from a few different triangles of the markets, footnotes, and extreme tightness. The cardiometry flows, the copper. Additional information was finally released by the U.S. government indicating the tariffs would only apply to copper that is now $2.43. The factor copper price was very short during and convert them into 10 points for my short. This was Friday. I will explain next. Amerigo's keeping with retail and capital different holders at a rapid pace. In the second quarter. Operator, seems that Aurora is back to listening. Am I not being correctly heard? Yeah, we can hear you now, but you've been cutting in and out, Aurora. Oh, I'm sorry about that. I'll continue. The script will be on the website, and we can go over any questions. Sorry about that. Okay. Cumulatively, the CRS has returned $90.2 million since its inception, with 66% of the amount returned via dividends and 34% through buybacks. In addition to these returns of capital, there is also the benefit of share price appreciation. During the second quarter, Amerigo's share pricing increased from $1.91 to $2.12. Today, the share price is $2.17, representing a 36% year-to-date increase. I am often asked about whether Amerigo's board of directors prioritizes dividends over share buybacks. The answer is that the CRS is flexible and multifaceted. There is no absolute preference for one over the other. Instead, we use these tools strategically to maximize shareholder value under varying market conditions. The CRS provides us with the flexibility to adapt to the inherent volatility of the corporate sector without being locked into a single method. The quarterly dividends are the foundation of the CRS. They provide a stable and predictable return to shareholders. Performance dividends are a flexible tool. We use the dividends to exceed excess cash when copper prices are strong and the company's cash balance exceeds $25 million. Performance dividends enable us to quickly share the benefits of spikes in copper prices with shareholders. Share buybacks are used opportunistically to take advantage of periods of share price weakness and to reduce dilution. We have stated the board's intention to buy back enough so as to eliminate annual shareholder dilution at a minimum, but we have been doing more than that. To be clear, being active on share buybacks does not mean there will be no performance dividends. Both can occur under strong copper prices. Our preference is for a balanced and opportunistic approach to capital return. The consistent forward dividends provide stability, performance dividends capture upside, and share buybacks manage dilution and capitalize on undervaluation. Our ultimate goal is to generate maximum value for shareholders and to utilize all the tools of the CRS to achieve this. 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 second quarter of 2025 from Amerigo Resources and its Minera Valle Central operation in Chile. During the three months ended June 30, 2025, the company posted a net income of $7.5 million, earnings per share of $0.05, or CHF 0.06, and EBITDA of $17.8 million. Net income was $2.2 million lower than in Q2 of 2024, primarily because during the second quarter of 2024, Amerigo Resources booked $6.9 million in positive fair value adjustments to copper revenue receivables, resulting from a sharp quarter-on-quarter increase in copper prices. For comparison, during Q2 2025, the total positive fair value adjustments amounted to $0.7 million. Revenue in Q2 2025 was $50.8 million compared to $51.6 million in Q2 2024. This included copper tolling revenue of $43.8 million and molybdenum revenue of $7 million. In Q2 2025, the gross value of copper tolled on behalf of DEP was $66.9 million. From this gross revenue, we deducted notional items, including DEP royalties of $19.9 million, smelting and refining of $3.6 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $0.7 million, which, as I mentioned, were significantly lower than the positive fair value adjustments in the second quarter of 2024. Revenue also included molybdenum revenue of $7 million. We reported a provisional copper price of $4.42 per pound on our Q2 2025 sales, which coincidentally was the same provisional price we had for the first quarter of 2025. The final settlement prices for April, May, and June 2025 sales will be based on the average London Metal Exchange prices for July, August, and September of 2025, respectively. We now know July's average provisional price, or average price, which is $4.44. A 10% increase or decrease from the $4.42 per pound provisional price used on June 30, 2025, would result in a $6.9 million change in revenue in Q3 2025 regarding Q2 2025 production. Tolling and production costs increased 10% from $35.1 million in Q2 2024 to $38.7 million in Q2 2025, which can be mainly attributed to an 11% increase in production between both quarters due to the timing differences of Minera Valle Central's annual maintenance shutdown, which in 2024 took place in the second quarter, but this year took place during the first quarter. The most significant cost variances between the two quarters were consumption-driven. They included higher power costs of $1.2 million, line costs of $0.6 million, and other direct tolling costs, such as copper reagents, of $0.8 million. Moly production costs increased by $0.3 million due to higher production associated with more processing of historic tailings in Q2 2025. The gross profit after revenue and production costs was $12.1 million compared to $16.5 million in Q2 2024. General and administration expenses were $1 million compared to $1.1 million in Q2 2024. These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.2 million, and share-based payments of $0.2 million. Other gains were $0.1 million compared to $0.6 million in the second quarter of 2024, driven mainly by foreign exchange gains in both periods. Finance expense was $0.4 million, consistent with Q2 2024, and consisted entirely of interest on loans and bank charges. Income tax expense was $2.6 million compared to $5.6 million in Q2 2024. Beginning this quarter, we've included a breakdown of the company's tax expense in the P&L, separating current taxes from deferred income taxes. The current tax represents both actual income tax for Minera Valle Central and repatriation taxes to bring funds from Chile to Canada. Deferred income tax is an accounting figure used to reconcile timing differences, in Amerigo' case, primarily arising from the differences in the timings of financial and tax depreciation. Current tax expense in Q2 2025 was $4.4 million compared to $6.3 million in Q2 2024. Before moving on to the statement of financial decisions, I will mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. Amerigo's cash cost in Q2 2025 was $1.82 per pound, decreasing from $1.96 per pound in Q2 2024. The $0.14 per pound reduction in cash cost was primarily due to a $0.19 per pound decrease in smelting and refining charges in response to the current annual benchmark, offset by increases of $0.03 per pound in line costs and other direct costs. Total costs decreased to $3.55 per pound, a decrease of $0.23 per pound from Q2 2024's $3.78 per pound. This was the result of a $0.14 reduction in cash cost, a $0.04 decrease in DEP royalties, and a $0.05 decrease in depreciation. All-in sustaining costs, which include total costs, sustaining capex, and corporate tier name, were $3.69 per pound in Q2 2025 compared to $4.20 in Q2 2024. This is the result of per pound decreases of $0.23 in total cost, $0.27 in sustaining CapEx, and $0.01 in corporate to your name expenses. Moving on to the statement of financial position, on June 30, 2025, the company had cash equivalents of $23.3 million, restricted cash of $0.9 million, and had a working capital deficiency of $5.4 million, down 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 $19.7 million at the end of June 2025. Current income tax liabilities also decreased from $8.5 million on December 31, 2024 to $0.1 million. Most of the tax balance due at the end of 2024 related to income tax owing by MVC in respect of 2024 earnings, which exceeded the monthly tax installments made. This tax was paid in April 2025 when MVC's annual tax declaration was filed in Chile. Note that in line with Chilean tax requirements, MVC placed monthly tax installments based on a percentage of revenue, which may or may not be close to the final corporate tax for a given year. In April of the following year, when the tax declaration is filed for the previous year, any difference in the amount owing exceeding the monthly tax installments is paid. You will notice that the company's debt, which is shown as $7 million net of transaction fees, is now shown fully as current debt. As guided to the market, we intend to make the remaining scheduled payment of $4 million in the second half of the year and prepay the remaining $3.5 million, which is formally due on June 30, 2026. In this way, Amerigo will be in a zero-debt position by the end of 2025. Regarding cash flows during the quarter, Amerigo generated $11.9 million in cash flows from operations. Net operating cash flow, which includes changes in non-cash working capital, was $6.3 million. Included in the changes in non-cash working capital are payments related to current income taxes, income tax liabilities, rather, of $9.5 million, which includes the 2024 income tax payments we previously discussed. These decreases in accounts payable and income tax result in an outlay of cash, thereby decreasing the cash flow from operations net of these non-cash working capital changes. In terms of uses of cash during the quarter, $1.4 million was used for investing activities, in other words, for CapEx payments, and $9.4 million was used in financing activities. These financing activities included Amerigo Resources returning $7.6 million to shareholders, $3.5 million through Amerigo's regular quarterly dividend of $0.03 Canadian per share, and $4 million from the purchase and cancellation of 3.1 million common shares through a normal course issuer bid. The company also paid $4 million on borrowings, including $2.3 million paid with restricted cash. Briefly touching on the results for the first half of the year compared to guidance, our cash cost for the six months ended June 30, 2025, was $2 per pound, and our forecast indicates that we are 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 any signing bonus associated with a three-year collective labor agreement with Minera Valle Central's operator's union that will occur later this year. In 2025, Minera Valle Central is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustained CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. Year-to-date 2025, CapEx additions were $6 million and CapEx payments were $8.2 million. We remain on track with our annual CapEx guidance. We will report Amerigo' Q3 2025 financial results in October 2025 and want to thank you for your continued interest in the company. We will now take questions from call participants. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on the telephone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press the star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. The first question comes from Terry Sumpto at CIBC Markets. Please go ahead. Yes, good afternoon, everybody. I believe it's already been flagged that there was really a lot of problems with the connection while Aurora was speaking, particularly about the outlook for copper and copper markets. I think you said that the text of the speech will be available on the website, so I don't expect you to repeat it here. I did want to ask, though, about the likelihood, because I think you mentioned it, but I didn't get it because the phone broke up, of a positive share value adjustment in the third quarter, given where copper prices are and have been. Is that a reasonable expectation? Terry, first of all, sorry about that. We did a sound check before we had the call, and we didn't have any problems. It's unfortunate that I didn't come through. Yes, the text of the earnings call will be available on the website as soon as we get it from the supplier. I did speak about the fact that July has been a good month, both in terms of production, and we also saw, because now we have the average prices for the month of July, $4.44 per pound. We marked to market on average at $4.42 at the end of June 30, as Carmen was mentioning. Right now, as we speak, there is a small positive adjustment on a pricing basis for the first month that has settled, which is, essentially, we have settled now April after July average prices. The outlook remains positive from our perspective. I did speak about, and hopefully that wasn't broken, what happened yesterday with the clarification of what the U.S. tariff is going to be looking like, essentially exempting copper concentrates and unrefined copper from the tariffs. That caused a sharp correction of that arbitrage that we have been seeing between COMEX and the LME markets for most of the year. If you look at copper COMEX price today and the LME, there's a $0.03 difference, which rises back to normal in terms of what you normally have in those markets. Does that answer your question? Yes, that's fine. I'll read the text. My second question is sort of a left field, but I'm wondering if you've heard of a company called Stillbright. No, I haven't heard about them. Okay. I'll leave that with you to research. Stillbright, I just saw an interview today on television. I'd never heard of it before. It's a startup, kind of a technology company that has received some seed financing. What they have is a new process for essentially smelting copper, but it's through flotation cells, and they use vanadium as a catalyst, and they're able to recover the copper without producing the waste products that many smelters do, lead and arsenic. They can do it at a much lower cost and quicker startup to build these things. From what the person said, I think it's unlikely that it would be targeted towards processing tailings. I think it's more an alternative to shipping ore to China to be smelted and doing it domestically in the U.S. and other countries. Anyway, worth researching. I'll leave that with you. The only other question I had actually is for a Carmen question. It'd be exciting for Carmen. It's a two-part question. One is that with all the depreciation we're taking at over $22 million a year, which I know helps with cash conservation by deferring taxes, because it's tax depreciation. I don't know what CCA is versus depreciation rates in Chile. In any event, it seems to me that the fixed assets now are being considerably undervalued in the balance sheet. Related to that balance sheet, we also have $24 million of other assets, and I forget what those are. The question is, are the assets undervalued in the balance sheet, and what are the $24 million of other assets? I think you have to remember when you look at depreciation, tax depreciation and accounting depreciation are different. What we're taking on the P&L, that's just our standard depreciation rate over the life of the asset, whereas the tax depreciation is completely different. It's not, you know, not in a, we don't do it in a way to save taxes on the accounting side. Okay. Sorry. I phrased the question improperly. Forget about the tax depreciation. It just seems to me that even with the depreciation rates the company uses, relative to the age and the value of the assets, the assets on the balance sheet are probably understated, which is a good thing for us. I guess it doesn't matter a lot given that there's no fixed debt on the balance sheet as well. There's no leverage for that. Still, book value matters to some people. I wouldn't say the assets are understated. Okay. Can you answer the other question? What are the other assets, $24 million? Sure. That relates to all the plant, plant and equipment that's on site, mostly the plant. Other assets are plants, not fixed assets. Machinery and equipment would relate to all of the other assets that are coming. All right. Okay. That's part of the whole plant and equipment then. Okay, that's a good thing. Exactly. Yeah. All right. That's the majority of what we have in fixed assets on the balance sheet. There's also the machinery and equipment that we use as well. Okay. If I could add just one final question for Aurora. It seems to me that in the quarter we've had, obviously, the U.S. copper price up because of the Trump tariffs and that's now gone away, still, I would have thought there would have been a greater arbitrage effect on the LME price than we actually saw. Can you explain why that didn't happen? Terry, what we basically do is we mark to market, as real as these close based on the progression of the copper prices at month end. We sell those prices at the actual average price for the LME of the month in question. For example, when you're looking at the average prices that we had in 2023 for the second quarter, I'll tell you what they were, although this is available online. The average LME copper price for April was $4.17. There was a significant decline from $4.42-$4.17 in April. That was the final price for January sales, which was the April LME price, $4.17. The final settlement price for the February sales, which was the May price, was $4.32. The final settlement price for the March sales was the June average price of $4.46. If you're looking at what happened there, I didn't see that huge pickup. April wasn't a defining moment or a defining month of negative adjustments from $4.42-$4.17. For May, it was also settled at a lower price of $4.32 compared to the $4.42 that we had marked to market. The only month in the second quarter where there were positive settlement adjustments compared to our marked to market at March 31 was the month of June, $4.46. I'm sorry if this all sounds so confusing. We try to simplify all of that information in the notes to our actual news release. All of that information is there, but there certainly was a negative final settlement when you looked at the April realized prices of $4.17. Right. I get that. I actually do understand it because I've been following the company a long time. I didn't phrase the question very well, I guess. I was just thinking about the LME price versus the spot price and the U.S. copper price and why there wasn't a greater pull on the LME price. Nothing to do with Amerigo. Maybe that's a question that can't be answered, but it just surprised me that there wouldn't have been a greater effect on the LME. A greater positive or a greater negative effect? If the U.S., if the price of copper is higher in the U.S. because Americans are buying it to front run the tariffs, you would expect that would increase demand for copper even globally, which would reflect on the LME settlement prices. I think it did. I mentioned that, Curt, that was one of the things that I mentioned on the script. The run-up that we saw on COMEX prices during the quarter and basically during the first semester of the year had a positive effect on the LME. I think it did pull it up, and now. Okay. If you look at the prices today, $4.39 COMEX, LME spot price $4.36, we're back to normal. I think that trading run opened up a lot of eyes into what's going on with the copper fundamental structure, not just a trading story, which is a benefit for the industry in general, for all of us, for sure. Right. Okay. That's good. I'll read, I'll read, Carmen. I don't want to take up more time now, but thanks for everything. That's great. Thank you. The next question comes from Ben Pirie at Atrium Research. Please go ahead. Hi, Aurora, Graham, and Carmen. It's Ben from Atrium Research again. First, Atrium dropped on a strong quarter, and it's good to see the shareholders are rewarding you guys for all the hard work. Just a couple of questions here. I think Terry covered a couple of them around the LME prices there. In terms of capex, obviously, you know, the main inch fell down in Q1, so it was elevated in Q2, it was quite low. What can we expect in Q3 and Q4 from a capex perspective? You couldn't expect any changes from the original guidance, which was $13 million. I think Carmen spoke about that. What is in those $13 million? We have essentially five process optimization projects, which have a price tag of $12.4 million. This includes finalizing some projects that we initiated in 2024, basically to expand and optimize the control of flotation cells and improve water evacuation in Coconus. We also have a project to optimize flotation in the Cascades. We have the addition of a second thickener for the NIPS concentrate. What has transpired in terms of Q1 and Q2? We had a front-loading of a lot of the capex as associated with two things: the timing of the plant maintenance shutdown and the workload of those optimization projects. We're on track to not have more than that $13 million of total capital for the year. I did mention $4.4 million for optimization. The other categories are $4.2 million for a plant shutdown and $4 million just for sustaining capex, growing sustaining capex. Okay. Understood. Thank you. In terms of share buybacks, we did hear you were cutting in and out a little bit, but on the buybacks in particular in Q2, there was obviously quite a jump from Q1. I think it was a 4 or 5X in terms of shares bought back. Why such a big change? In terms of consistency going into Q3 and Q4, I know you mentioned you're sort of going to be opportunistic with the buybacks, but can you just touch on this jump from Q1-Q2? Yes. I think what was happening was basically strong cash generation and the recognition that there was, especially in the second quarter, an opportunity of buying back those shares at a really good price. I did mention that our average buyback price in the quarter was $1.78. I think that was for the first semester. I think that we were just watching how much cash is coming in as free cash flow and what is the best way of allocating that cash to ensure that we kept up with essentially that distribution commitment. Share buybacks was an obvious opportunity for us in the second quarter. Right. Okay. Maybe you can touch on that sort of strategy in terms of how you're prioritizing shareholder returns. I think it did cut out a little bit, but it sounds like when the share price is higher, you'll probably scale back the buybacks, but it's just to operate as high as performance dividends. It's basically a more holistic answer. I wouldn't like to just provide a very linear response saying if copper price is here, we do this or we do that, or if the share price is here, we take this route. I think that the answer is that our CRS has to be flexible. We have no absolute preference other than ensuring that we live up to our word of return and gas tax to shareholders. We use the tools strategically. You know quite well that for us, the foundation of the CRS is the quarterly dividend. We want to provide that very stable, very predictable return to shareholders. Under this copper price condition, where that $0.03 Canadian dividend is absolutely safe, the question becomes, what do we do next? Performance dividends or the share buybacks? The performance dividends are a great tool. For example, when you have a spike in copper prices, we saw that happening in the second quarter of 2024. The obvious answer was, we've realized the benefits of this strong settlement in the quarters for our prior quarter sales, and we have to return this. The best way of doing it quickly is through the performance dividend. Share buybacks, you know, if we see a period of share price weakness, we act on that. If we want to reduce dilution, we act on that. We have stated at the very minimum, we want to end each year with no dilution. In fact, we've done more than that this year. Certainly, you saw the activity that we had in the second quarter. Literally, what was happening is we had the free cash flow. We were looking at our share price movement, and we thought this is a great opportunity to go out in the market and buy back those shares at a bargain price. We did that. Understood. Yeah, that makes sense. I guess just the last question would be, obviously, you've been paying down the debt quite aggressively over the last year and a half. What are the plans to do with the excess cash flow once this debt is paid off at the end of the year? Is there a chance that the fixed dividend portion could increase? That is certainly a possibility. Depending on where share price performance is, additional activity on the buyback is also a possibility, or a heftier or more frequent performance dividend. It's A, B, or C. That's the easy answer, because basically, there's going to be a substantial catalyst in terms of additional free cash flow to equity. I think Carmen mentioned that. On average, if you look at our scheduled debt repayments for the debt worth $7 million, add to that $2 million of finance costs. That's $9 million that are becoming available as of 2026. Understood. I guess it's good to keep that flexibility and see how things go. That's all I had for today. Again, congrats and thanks. Thanks, Ben. Thank you. The next question comes from John Polcari at Mutual of America. Please go ahead. Thank you. Another well-managed quarter. Thank you. Two questions, and I will not repeat or bother you with the question regarding dividends or increases. In addition to eliminating dilutions, is there a minimum number of shares that you think might be retained as far as reducing the flow to, was it aggressive repurchase of shares in the second quarter? That obviously will vary from quarter to quarter. Again, is there a minimum amount to, in order to maintain liquidity that you think would be appropriate, that you would not want to drop below in terms of the number of shares outstanding, or? No. The commitment is basically driven towards dilution, and I don't think that we have reached a situation where we think that buying back any more shares or buying back a big block of shares would represent a detrimental decision for the company to take on. As we speak, if there was an appropriate decision and there was adequate cash. As we speak, share buybacks are absolutely on the table, as are performance dividends and possibly in 2026 an increase to the quarterly dividend. The three tools remain fully valid and executable depending on circumstances. Thank you. The other question I had was just, if you could take just a moment out to refresh me on, if you will, retain the custody for copper delivery. After you've extracted the copper from the tailings, it goes to the port, and at what point do you turn over, say, title to the, to the copper? At what point do you receive? It's easier. It is easier than that in terms of when is title transferred. Our copper concentrate, it's a copper concentrate. It's not a cathode. It's not a finished product. It's a dark powder called copper concentrate. It is shipped out on a daily basis. As soon as it's put on the El Teniente trucks, it passes title. We bill for those deliveries on a weekly basis. We get a provisional price on a weekly basis, and we settle that final provisional price sooner or later when the known price of the third month following delivery takes place. I understand. That provisional price. Yes, that provisional price is, it's always, yeah, go ahead. Always based on the LME? It's always LME. It's always LME. We actually look at the provisional weekly price, which is based on the provisional price that is used until things are settled, sooner or later. Always LME. Great. All right. That's all I had. Thank you again for managing us through another volatile quarter. Thank you. Thank you. The next question comes from William Gower, an investor. Please go ahead. All right. I just want to echo the congratulations to everybody on the call, but also to the teams in Chile doing the work. This is incredible operational performance and managerial performance. I just have a quick follow-up on the settlement. It sounds like the fair value adjustment is made three months later. I mean, we're marking the market, but when is the cash actually hitting our account? Along the same lines, are we waiting to make decisions on cash flow such as buybacks or dividends until we know what the provisional adjustment is? That way, essentially, there's going to be a quarterly delay in the effect of the cash flows and then the decisions we make based on the cash flows? Thank you for recognizing the team in Chile. They are the real people that make all of this happen. We just coordinate them. There are two parts to the question regarding the marked to market, but I think that we marked to market every month. Carmen prepares consolidated financial statements on a monthly basis, not on a quarterly basis. We take the LME spot price and the LME M plus 3 price, and we create a progression for the M plus 1, M plus 2 based on those two data points. We do the marked to market on a monthly basis. I think the most important part of your question is what happens with the cash, and what happens with the decision-making around that cash. The payment terms from Codelco to Minera Valle Central can be summarized in three steps. We issue weekly invoices each Monday for 75% of the prior week's copper production, which is provisionally priced as I was speaking in my prior question at the week's average LME price. Once the month is completed, we issue one monthly invoice to true the amount up to 90% of the month's production, which is provisionally priced at the monthly average price less the weekly interim payment. Basically, at each month end, we are caught up with 90% of the deliveries that were done during the prior month, priced at the most recent LME price for 90% of those deliveries. When the final terms are known three months later, we issue one final either credit note or debit note at the final price, which is the M plus 3 price. Cash flow is coming in on a weekly basis of 75% of our production rate. It is trued up to 90% of our production rate by a week after the end of the month. The final settlement, positive or negative, takes place three weeks before. There is always a continuum of cash flow coming in on a weekly basis. We update all of this information in our model. We basically are working with real-time data that allows us to know how much, for example, can be allocated to share buybacks on a weekly basis when we're active on the buyback program. Or, when copper prices are close or down, slower prices, how safe is our CapEx payment or weekly payment as quarterly dividends? We are monitoring all of that information essentially, I would say, daily. We have that. We just plug in the copper price that we think is going to apply for each week, and we have all the data right in front of us. Perfect. Thank you so much. I have another two follow-ups, not to that specific area, but with regards to cost guidance. It's, you know, it's around $2 per pound. Obviously, it's been beaten in Q1 and Q2, and really. In Q2. In Q2, okay, largely because of smelting and refining charges being lower. Is that something? I know you've maintained the cost. Go ahead. No. Yeah, we guide it. If you're interested in the guidance, I would say the best source of information and probably the news release you should keep close to you year-round is our guidance news release, which is usually our first news release of the year. We provide there not only what the cash flow guidance is going to be, but also to search for experiences in terms of what happens to those copper prices moving up or down, moly prices moving up or down, and even forward sales. When we provided our guidance for the year in terms of cash cost, we knew already what the spot prices, oh, sorry, what the TCRCs, the treatment and refining charges, were going to be for the year. Any variations that you've seen from guidance to actual are not driven by lower smelt and refinery charges. I guess I'm probably just ignorant and don't understand it, and maybe you can better explain it. Are these decreases at least the lower numbers than the cash cost guidance expected from smelting and refining? I guess what I'm getting at is, is this something that's going to be long-term, or is this kind of one-off? The variances that we're seeing right now are coming in from higher moly productions. They're coming in from a better, or from a lower, from at least a strong Chilean peso compared to U.S. dollar. Those are the significant variances that are coming from. They're not coming by lower smelter and refinery charges. In our case, as is also the case for most copper concentrate producers, we work not on the basis of spot treatment and refining charges, but on what's called an annual benchmark treatment and refining charge that is known at the end of the prior year. You work with those figures and with those charges for the rest of the year, irrespective of what happens with the spot TCRCs. There are long-term or annually set rates that don't change through the year. Okay. Thank you. The last subject, and I'll preempt this question by thanking you for doing the interviews that you do, the kind of long form, hour, hour and a half long videos. Those are incredibly helpful and answer a lot of my questions. Part of that, when you're questioned about the overall DEP contracts, both for historic and fresh tailings, you know, obviously, you provide guidance in the management discussion and analysis saying, basically, there's very little chance of DEP canceling our contract in the short term. With regards to the current extension contract deadlines, obviously, it's been renewed and renewed. When can you provide us any guidance on when we might hear about talks of an additional extension or just kind of when we could start thinking about hearing that or, I don't know, some sort of guidance on that? We are 12 years away from the contract expiring. Can I share you one thing? If I'm Codelco, in 12 years, you will not hear from it on year 11. You probably will hear from it around year 6, 6 years before. This is critical to us. It is a genesis of what the company is. This is not a discussion or a negotiation that we're going to leave to the end of, or closer to 2037. We're still 12 years away from that. Yeah, I know. It's very important. I think it's very important. That's why I figured I'd ask. I appreciate it, and your confidence is one of the main reasons I'm an investor. You are one of the main reasons I'm an investor in Amerigo Resources. I appreciate you and the entire team there. Thank you for all of the work that you do. You're very kind. Thank you. If we have no further questions, I will turn the call back over to Aurora Davidson for closing comments. Thank you very much. Again, my apologies for any communication disruptions through the call. We try to avoid them as much as we can. Thank you for attending today's call, and thank you to Carmen and Graham for being on the call as well. The recording and the script will be available on Amerigo's website in the next few days. We will hold our next earnings call on Thursday, October 30, to report our third quarter results. Please visit our website regularly for updates, and feel free to contact us with any questions at your convenience. Thank you for your continued interest in Amerigo. Ladies and gentlemen, this concludes our conference call for today. We thank you for participating, and we ask that you please disconnect now.

Speaker 7: Good evening. My name is Joanna, and I will be your conference cooperator today. At this time, I would like to welcome everyone to the Amerigo Resources econd Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the formal remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Thank you. Mr. Graham Farrell of North Star Investor Relations, you may begin your conference. Good evening. good evening My name is Joanna, and I will be your conference cooperator today. my name is joanna and i will be your conference cooperator today At this time, I would like to welcome everyone to the Amerigo Resources econd Quarter 2025 Earnings Conference Call. at this time i would like to welcome everyone to the amerigo resources econd quarter 2025 earnings conference call All lines have been placed on mute to prevent any background noise. all lines have been placed on mute to prevent any background noise After the formal remarks, there will be a question and answer session. after the formal remarks there will be a question and answer session If you would like to ask a question during this time, simply press star and then the number one on your telephone keypad. if you would like to ask a question during this time simply press star and then the number one on your telephone keypad If you would like to withdraw your question, please press star followed by the number two. if you would like to withdraw your question please press star followed by the number two Thank you. thank you Mr. Graham Farrell of North Star Investor Relations, you may begin your conference. mr graham farrell of north star investor relations you may begin your conference

Speaker 5: Thank you, operator. Good afternoon and welcome everyone to Amerigo's quarterly conference call to discuss the company's financial results for the second quarter of 2025. We appreciate you joining us today. This call will cover Amerigo's financial and operating results for the second quarter ended June 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's President and Chief Executive Officer, Aurora Davidson, along with the company's Chief Financial Officer, Carmen Amezquita. Before we begin our formal remarks, we'd 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 's quarterly conference call to discuss the company's financial results for the second quarter of 2025. good afternoon and welcome everyone to amerigo 's quarterly conference call to discuss the company's financial results for the second quarter of 2025 We appreciate you joining us today. we appreciate you joining us today This call will cover Amerigo 's financial and operating results for the second quarter ended June 30, 2025. this call will cover amerigo 's financial and operating results for the second quarter ended june 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 's 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 's president and chief executive officer aurora davidson along with the company's chief financial officer carmen amezquita Before we begin our formal remarks, we'd like to remind everyone that some of the statements on this conference call may be forward-looking statements. before we begin our formal remarks we'd 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 CRS. 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 CRS. 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 crs 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 2: Thank you, Graham. You have come to learn this earnings call for the second quarter of 2025. We are pleased to report positive operational and expense outflows. Amerigo Resources has again demonstrated its operational excellence and capital allocation agility. We achieved strong copper production, managed cost effectively, and reinforced our commitment to shareholder returns. Our Chilean operation, Minera Valle Central, continued to operate consistently in the second quarter with no lost time excellence among our employees and no environmental incidents. In both of these operational performance categories, Minera Valle Central continues to extend its multi-year company records. Copper production was 15.5 million lbs, and margin on production was also robust. Copper production in the first half of the year had a 4.4% of Amerigo's annual guidance of 62.9 million lbs. Our yearly guidance takes into account our lower production in Q1, which was associated with the annual maintenance shutdown. Thank you, Graham. thank you graham You have come to learn this earnings call for the second quarter of 2025. you have come to learn this earnings call for the second quarter of 2025 We are pleased to report positive operational and expense outflows. we are pleased to report positive operational and expense outflows Amerigo Resources has again demonstrated its operational excellence and capital allocation agility. amerigo resources has again demonstrated its operational excellence and capital allocation agility We achieved strong copper production, managed cost effectively, and reinforced our commitment to shareholder returns. we achieved strong copper production managed cost effectively and reinforced our commitment to shareholder returns Our Chilean operation, Minera Valle Central, continued to operate consistently in the second quarter with no lost time excellence among our employees and no environmental incidents. our chilean operation minera valle central continued to operate consistently in the second quarter with no lost time excellence among our employees and no environmental incidents In both of these operational performance categories, Minera Valle Central continues to extend its multi-year company records. in both of these operational performance categories minera valle central continues to extend its multi-year company records Copper production was 15.5 million lbs, and margin on production was also robust. copper production was 15.5 million lbs and margin on production was also robust Copper production in the first half of the year had a 4.4% of Amerigo 's annual guidance of 62.9 million lbs. copper production in the first half of the year had a 4.4% of amerigo 's annual guidance of 62.9 million lbs Our yearly guidance takes into account our lower production in Q1, which was associated with the annual maintenance shutdown. our yearly guidance takes into account our lower production in q1 which was associated with the annual maintenance shutdown Therefore, our production guidance remains in place. We also maintain strict cost goals, and our cash cost per pound declined to $1.82 in the second quarter. Our annual cash cost guidance of $1.93 per pound is also expected to be met. This guided cash cost target excludes the impact of Minera Valle Central's collective bargaining costs which was scheduled for October of this year. Collective bargaining occurs separately every three years at Minera Valle Central for our two collective agreements. Amerigo's annual performance in the second quarter included revenue of $50.9 million at an average Minera Valle Central copper price of $4.42 per pound. This price excludes positive price driven settlement of $700,000 on the first quarter sales. The quarter was $3.5 million with earnings per share of $0.05. Therefore, our production guidance remains in place. therefore our production guidance remains in place We also maintain strict cost goals, and our cash cost per pound declined to $1.82 in the second quarter. we also maintain strict cost goals and our cash cost per pound declined to $1.82 in the second quarter Our annual cash cost guidance of $1.93 per pound is also expected to be met. our annual cash cost guidance of $1.93 per pound is also expected to be met This guided cash cost target excludes the impact of Minera Valle Central's collective bargaining costs which was scheduled for October of this year. this guided cash cost target excludes the impact of minera valle central's collective bargaining costs which was scheduled for october of this year Collective bargaining occurs separately every three years at Minera Valle Central for our two collective agreements. Amerigo 's annual performance in the second quarter included revenue of $50.9 million at an average Minera Valle Central copper price of $4.42 per pound. collective bargaining occurs separately every three years at minera valle central for our two collective agreements. amerigo 's annual performance in the second quarter included revenue of $50.9 million at an average minera valle central copper price of $4.42 per pound This price excludes positive price driven settlement of $700,000 on the first quarter sales. this price excludes positive price driven settlement of $700,000 on the first quarter sales The quarter was $3.5 million with earnings per share of $0.05. the quarter was $3.5 million with earnings per share of $0.05 By the end of the year, in line with Amerigo's capital return strategy, or CRS, a dividend of CA$0.06 per share was paid, corresponding to $3.5 million. Additionally, 3.1 million common shares were repurchased and canceled during the quarter at a weighted average price of CA$1.78 per share, representing $4 million. Year-to-date copper prices have been stronger than we budgeted, with Minera Valle Central receiving a copper price of $4.42 per pound compared to our revenue estimate of $4.15 per pound in 2025. We hope to see lower copper prices further shortly. The marginal price has been $20.22 per pound and is trending very close to our annual estimate of $21 per pound. The average exchange rate of the Chilean peso to the U.S. dollar in the first half of the year was CLP 955, also very close to our estimate of CLP 940. By the end of the year, in line with Amerigo 's capital return strategy, or CRS, a dividend of CA$0.06 per share was paid, corresponding to $3.5 million. by the end of the year in line with amerigo 's capital return strategy or crs a dividend of ca$0.06 per share was paid corresponding to $3.5 million Additionally, 3.1 million common shares were repurchased and canceled during the quarter at a weighted average price of CA$1.78 per share, representing $4 million. additionally 3.1 million common shares were repurchased and canceled during the quarter at a weighted average price of ca$1.78 per share representing $4 million Year-to-date copper prices have been stronger than we budgeted, with Minera Valle Central receiving a copper price of $4.42 per pound compared to our revenue estimate of $4.15 per pound in 2025. year-to-date copper prices have been stronger than we budgeted, with minera valle central receiving a copper price of $4.42 per pound compared to our revenue estimate of $4.15 per pound in 2025 We hope to see lower copper prices further shortly. we hope to see lower copper prices further shortly The marginal price has been $20.22 per pound and is trending very close to our annual estimate of $21 per pound. the marginal price has been $20.22 per pound and is trending very close to our annual estimate of $21 per pound The average exchange rate of the Chilean peso to the U.S. dollar in the first half of the year was CLP 955 , also very close to our estimate of CLP 940 . the average exchange rate of the chilean peso to the u.s dollar in the first half of the year was clp 955 also very close to our estimate of clp 940 Following the close of the second quarter, our operational results for July have been very positive, with the price has also remained in July atf $4.40 per pound. If these conditions persist during August and September, we would aim to close the third quarter. Moving on to the U.S. corporate landscape, I would like to provide a quick summary. The corporate market is tight by using story levels. The U.S. has significant bridge forecasts for financials here are a few examples. Global mine corporate production is expected to close next quarter than the 2020 flat estimate in 2023. Factors such as mining increasingly requires resource depletion, political uncertainty, and declining costs as headwinds begin. In the high corporate market, you can see refrigerants, spot treatments, and refinery charges, also known as TCRCs. Interest rates and difficulty of finance tools exist during corporate finance to replace diverse methods of finance. Following the close of the second quarter, our operational results for July have been very positive, with the price has also remained in July atf $4.40 per pound. following the close of the second quarter our operational results for july have been very positive with the price has also remained in july atf $4.40 per pound If these conditions persist during August and September, we would aim to close the third quarter. if these conditions persist during august and september we would aim to close the third quarter Moving on to the U.S. corporate landscape, I would like to provide a quick summary. moving on to the u.s corporate landscape i would like to provide a quick summary The corporate market is tight by using story levels. the corporate market is tight by using story levels The U.S. has significant bridge forecasts for financials here are a few examples. the u.s has significant bridge forecasts for financials here are a few examples Global mine corporate production is expected to close next quarter than the 2020 flat estimate in 2023. global mine corporate production is expected to close next quarter than the 2020 flat estimate in 2023 Factors such as mining increasingly requires resource depletion, political uncertainty, and declining costs as headwinds begin. factors such as mining increasingly requires resource depletion political uncertainty and declining costs as headwinds begin In the high corporate market, you can see refrigerants, spot treatments, and refinery charges, also known as TCRCs. in the high corporate market you can see refrigerants spot treatments and refinery charges also known as tcrcs Interest rates and difficulty of finance tools exist during corporate finance to replace diverse methods of finance. interest rates and difficulty of finance tools exist during corporate finance to replace diverse methods of finance Low TCRCs they now charge corporate miners indicates the desperation to secure an adequate supply. Estimating that 70% global smelter sources are currently unprofitable, this could lead to smelter shutdowns and cause a particular decrease in the growth of refined copper output. In 2023, refined copper supply grew by 4.2% and is now estimated to grow by only 1.3% in 2025. Refined product inventories in Germany and Shanghai have also fallen over this year. Concurrent with this stubborn supply scenario in the constantly increasing corporate market, demand has been a precipitation. The growth of AI data centers brings modernization and traditional demand. The events cause resources to go up. By putting together this planned demand outlook, a market deficit is expected by year-end and the International Energy Agency projects a market threat with resilient demand. This is bullish for corporate prices in Amerigo. Low TCRCs they now charge corporate miners indicates the desperation to secure an adequate supply. low tcrcs they now charge corporate miners indicates the desperation to secure an adequate supply Estimating that 70% global smelter sources are currently unprofitable, this could lead to smelter shutdowns and cause a particular decrease in the growth of refined copper output. estimating that 70% global smelter sources are currently unprofitable this could lead to smelter shutdowns and cause a particular decrease in the growth of refined copper output In 2023, refined copper supply grew by 4.2% and is now estimated to grow by only 1.3% in 2025. in 2023 refined copper supply grew by 4.2% and is now estimated to grow by only 1.3% in 2025 Refined product inventories in Germany and Shanghai have also fallen over this year. refined product inventories in germany and shanghai have also fallen over this year Concurrent with this stubborn supply scenario in the constantly increasing corporate market, demand has been a precipitation. concurrent with this stubborn supply scenario in the constantly increasing corporate market demand has been a precipitation The growth of AI data centers brings modernization and traditional demand. the growth of ai data centers brings modernization and traditional demand The events cause resources to go up. the events cause resources to go up By putting together this planned demand outlook, a market deficit is expected by year-end and the International Energy Agency projects a market threat with resilient demand. by putting together this planned demand outlook a market deficit is expected by year-end and the international energy agency projects a market threat with resilient demand This is bullish for corporate prices in Amerigo. this is bullish for corporate prices in amerigo In addition, tariffs on Jewish market resources are undefined or have undefined market partners and have impacted short-term corporate prices. During our last earnings call, I discussed the high arbitrage seen in the jewelry and copper prices as the governing market at a COMEX. This trend continues to go high in June. Under that scale, we are aside from copper. And that's the forex copper. However, the higher COMEX prices had a positive impact on our E.U. prices, which in turn had a positive effect on Amerigo. Pricing on copper relative to LME prices, with the average reaching over $0.45 per pound. This price divergence led to a massive redirection of copper inventories from the European Union to the U.S., driven both by speculation and structural factors. U.S. buyers scrambled to secure essential copper before August. In addition, tariffs on Jewish market resources are undefined or have undefined market partners and have impacted short-term corporate prices. in addition tariffs on jewish market resources are undefined or have undefined market partners and have impacted short-term corporate prices During our last earnings call, I discussed the high arbitrage seen in the jewelry and copper prices as the governing market at a COMEX. during our last earnings call i discussed the high arbitrage seen in the jewelry and copper prices as the governing market at a comex This trend continues to go high in June. this trend continues to go high in june Under that scale, we are aside from copper. under that scale we are aside from copper And that's the forex copper. and that's the forex copper However, the higher COMEX prices had a positive impact on our E.U. prices, which in turn had a positive effect on Amerigo. however the higher comex prices had a positive impact on our e.u prices which in turn had a positive effect on amerigo Pricing on copper relative to LME prices, with the average reaching over $0.45 per pound. pricing on copper relative to lme prices with the average reaching over $0.45 per pound This price divergence led to a massive redirection of copper inventories from the European Union to the U.S., driven both by speculation and structural factors. this price divergence led to a massive redirection of copper inventories from the european union to the u.s driven both by speculation and structural factors U.S. buyers scrambled to secure essential copper before August. u.s buyers scrambled to secure essential copper before august On warrants, only under the suspicions from a few different triangles of the markets, footnotes, and extreme tightness. The cardiometry flows, the copper. Additional information was finally released by the U.S. government indicating the tariffs would only apply to copper that is now $2.43. The factor copper price was very short during and convert them into 10 points for my short. This was Friday. I will explain next. Amerigo's keeping with retail and capital different holders at a rapid pace. In the second quarter. On warrants, only under the suspicions from a few different triangles of the markets, footnotes, and extreme tightness. on warrants only under the suspicions from a few different triangles of the markets footnotes and extreme tightness The cardiometry flows, the copper. the cardiometry flows the copper Additional information was finally released by the U.S. government indicating the tariffs would only apply to copper that is now $2.43. additional information was finally released by the u.s government indicating the tariffs would only apply to copper that is now $2.43 The factor copper price was very short during and convert them into 10 points for my short. the factor copper price was very short during and convert them into 10 points for my short This was Friday. this was friday I will explain next. i will explain next Amerigo's keeping with retail and capital different holders at a rapid pace. amerigo's keeping with retail and capital different holders at a rapid pace In the second quarter. in the second quarter

Speaker 5: Operator, seems that Aurora is back to listening. O perator, seems that Aurora is back to listening. o perator seems that aurora is back to listening

Speaker 2: Am I not being correctly heard? Am I not being correctly heard? am i not being correctly heard

Speaker 5: Yeah, we can hear you now, but you've been cutting in and out, Aurora. Yeah, we can hear you now, but you've been cutting in and out, Aurora. yeah we can hear you now but you've been cutting in and out aurora

Speaker 2: Oh, I'm sorry about that. I'll continue. The script will be on the website, and we can go over any questions. Sorry about that. Oh, I'm sorry about that. oh i'm sorry about that I'll continue. i'll continue The script will be on the website, and we can go over any questions. the script will be on the website and we can go over any questions Sorry about that. sorry about that

Speaker 5: Okay. Okay. okay

Speaker 2: Cumulatively, the CRS has returned $90.2 million since its inception, with 66% of the amount returned via dividends and 34% through buybacks. In addition to these returns of capital, there is also the benefit of share price appreciation. During the second quarter, Amerigo's share pricing increased from $1.91 to $2.12. Today, the share price is $2.17, representing a 36% year-to-date increase. I am often asked about whether Amerigo's board of directors prioritizes dividends over share buybacks. The answer is that the CRS is flexible and multifaceted. There is no absolute preference for one over the other. Instead, we use these tools strategically to maximize shareholder value under varying market conditions. The CRS provides us with the flexibility to adapt to the inherent volatility of the corporate sector without being locked into a single method. The quarterly dividends are the foundation of the CRS. Cumulatively, the CRS has returned $90.2 million since its inception, with 66% of the amount returned via dividends and 34% through buybacks. cumulatively the crs has returned $90.2 million since its inception with 66% of the amount returned via dividends and 34% through buybacks In addition to these returns of capital, there is also the benefit of share price appreciation. in addition to these returns of capital there is also the benefit of share price appreciation During the second quarter, Amerigo 's share pricing increased from $1.91 to $2.12. during the second quarter, amerigo 's share pricing increased from $1.91 to $2.12 Today, the share price is $2.17, representing a 36% year-to-date increase. today the share price is $2.17 representing a 36% year-to-date increase I am often asked about whether Amerigo 's board of directors prioritizes dividends over share buybacks. i am often asked about whether amerigo 's board of directors prioritizes dividends over share buybacks The answer is that the CRS is flexible and multifaceted. the answer is that the crs is flexible and multifaceted There is no absolute preference for one over the other. there is no absolute preference for one over the other Instead, we use these tools strategically to maximize shareholder value under varying market conditions. instead we use these tools strategically to maximize shareholder value under varying market conditions The CRS provides us with the flexibility to adapt to the inherent volatility of the corporate sector without being locked into a single method. the crs provides us with the flexibility to adapt to the inherent volatility of the corporate sector without being locked into a single method The quarterly dividends are the foundation of the CRS. the quarterly dividends are the foundation of the crs They provide a stable and predictable return to shareholders. Performance dividends are a flexible tool. We use the dividends to exceed excess cash when copper prices are strong and the company's cash balance exceeds $25 million. Performance dividends enable us to quickly share the benefits of spikes in copper prices with shareholders. Share buybacks are used opportunistically to take advantage of periods of share price weakness and to reduce dilution. We have stated the board's intention to buy back enough so as to eliminate annual shareholder dilution at a minimum, but we have been doing more than that. To be clear, being active on share buybacks does not mean there will be no performance dividends. Both can occur under strong copper prices. Our preference is for a balanced and opportunistic approach to capital return. They provide a stable and predictable return to shareholders. they provide a stable and predictable return to shareholders Performance dividends are a flexible tool. performance dividends are a flexible tool We use the dividends to exceed excess cash when copper prices are strong and the company's cash balance exceeds $25 million. we use the dividends to exceed excess cash when copper prices are strong and the company's cash balance exceeds $25 million Performance dividends enable us to quickly share the benefits of spikes in copper prices with shareholders. performance dividends enable us to quickly share the benefits of spikes in copper prices with shareholders Share buybacks are used opportunistically to take advantage of periods of share price weakness and to reduce dilution. share buybacks are used opportunistically to take advantage of periods of share price weakness and to reduce dilution We have stated the board's intention to buy back enough so as to eliminate annual shareholder dilution at a minimum, but we have been doing more than that. we have stated the board's intention to buy back enough so as to eliminate annual shareholder dilution at a minimum but we have been doing more than that To be clear, being active on share buybacks does not mean there will be no performance dividends. to be clear being active on share buybacks does not mean there will be no performance dividends Both can occur under strong copper prices. both can occur under strong copper prices Our preference is for a balanced and opportunistic approach to capital return. our preference is for a balanced and opportunistic approach to capital return The consistent forward dividends provide stability, performance dividends capture upside, and share buybacks manage dilution and capitalize on undervaluation. Our ultimate goal is to generate maximum value for shareholders and to utilize all the tools of the CRS to achieve this. Amerigo's CFO, Carmen Amezquita, will now discuss the company's financial results. Carmen, please go ahead. The consistent forward dividends provide stability, performance dividends capture upside, and share buybacks manage dilution and capitalize on undervaluation. the consistent forward dividends provide stability performance dividends capture upside and share buybacks manage dilution and capitalize on undervaluation Our ultimate goal is to generate maximum value for shareholders and to utilize all the tools of the CRS to achieve this. Amerigo 's CFO, Carmen Amezquita, will now discuss the company's financial results. our ultimate goal is to generate maximum value for shareholders and to utilize all the tools of the crs to achieve this. amerigo 's cfo carmen amezquita will now discuss the company's financial results Carmen, please go ahead. carmen please go ahead

Speaker 1: Thanks, Aurora. I'm pleased to present the financial report for the second quarter of 2025 from Amerigo Resources and its Minera Valle Central operation in Chile. During the three months ended June 30, 2025, the company posted a net income of $7.5 million, earnings per share of $0.05, or CHF 0.06, and EBITDA of $17.8 million. Net income was $2.2 million lower than in Q2 of 2024, primarily because during the second quarter of 2024, Amerigo Resources booked $6.9 million in positive fair value adjustments to copper revenue receivables, resulting from a sharp quarter-on-quarter increase in copper prices. For comparison, during Q2 2025, the total positive fair value adjustments amounted to $0.7 million. Revenue in Q2 2025 was $50.8 million compared to $51.6 million in Q2 2024. This included copper tolling revenue of $43.8 million and molybdenum revenue of $7 million. Thanks, Aurora. thanks aurora I'm pleased to present the financial report for the second quarter of 2025 from Amerigo Resources and its Minera Valle Central operation in Chile. i'm pleased to present the financial report for the second quarter of 2025 from amerigo resources and its minera valle central operation in chile During the three months ended June 30, 2025, the company posted a net income of $7.5 million, earnings per share of $0.05, or CHF 0.06, and EBITDA of $17.8 million. during the three months ended june 30 2025 the company posted a net income of $7.5 million earnings per share of $0.05 or chf 0.06 and ebitda of $17.8 million Net income was $2.2 million lower than in Q2 of 2024, primarily because during the second quarter of 2024, Amerigo Resources booked $6.9 million in positive fair value adjustments to copper revenue receivables, resulting from a sharp quarter-on-quarter increase in copper prices. net income was $2.2 million lower than in q2 of 2024 primarily because during the second quarter of 2024 amerigo resources booked $6.9 million in positive fair value adjustments to copper revenue receivables resulting from a sharp quarter-on-quarter increase in copper prices For comparison, during Q2 2025, the total positive fair value adjustments amounted to $0.7 million. for comparison during q2 2025 the total positive fair value adjustments amounted to $0.7 million Revenue in Q2 2025 was $50.8 million compared to $51.6 million in Q2 2024. revenue in q2 2025 was $50.8 million compared to $51.6 million in q2 2024 This included copper tolling revenue of $43.8 million and molybdenum revenue of $7 million. this included copper tolling revenue of $43.8 million and molybdenum revenue of $7 million In Q2 2025, the gross value of copper tolled on behalf of DEP was $66.9 million. From this gross revenue, we deducted notional items, including DEP royalties of $19.9 million, smelting and refining of $3.6 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $0.7 million, which, as I mentioned, were significantly lower than the positive fair value adjustments in the second quarter of 2024. Revenue also included molybdenum revenue of $7 million. We reported a provisional copper price of $4.42 per pound on our Q2 2025 sales, which coincidentally was the same provisional price we had for the first quarter of 2025. The final settlement prices for April, May, and June 2025 sales will be based on the average London Metal Exchange prices for July, August, and September of 2025, respectively. In Q2 2025, the gross value of copper tolled on behalf of DEP was $66.9 million. in q2 2025 the gross value of copper tolled on behalf of dep was $66.9 million From this gross revenue, we deducted notional items, including DEP royalties of $19.9 million, smelting and refining of $3.6 million, and transportation of $0.4 million, and then added positive fair value adjustments to settlement receivables of $0.7 million, which, as I mentioned, were significantly lower than the positive fair value adjustments in the second quarter of 2024. from this gross revenue we deducted notional items including dep royalties of $19.9 million smelting and refining of $3.6 million and transportation of $0.4 million and then added positive fair value adjustments to settlement receivables of $0.7 million which as i mentioned were significantly lower than the positive fair value adjustments in the second quarter of 2024 Revenue also included molybdenum revenue of $7 million. revenue also included molybdenum revenue of $7 million We reported a provisional copper price of $4.42 per pound on our Q2 2025 sales, which coincidentally was the same provisional price we had for the first quarter of 2025. we reported a provisional copper price of $4.42 per pound on our q2 2025 sales which coincidentally was the same provisional price we had for the first quarter of 2025 The final settlement prices for April, May, and June 2025 sales will be based on the average London Metal Exchange prices for July, August, and September of 2025, respectively. the final settlement prices for april may and june 2025 sales will be based on the average london metal exchange prices for july august and september of 2025 respectively We now know July's average provisional price, or average price, which is $4.44. A 10% increase or decrease from the $4.42 per pound provisional price used on June 30, 2025, would result in a $6.9 million change in revenue in Q3 2025 regarding Q2 2025 production. Tolling and production costs increased 10% from $35.1 million in Q2 2024 to $38.7 million in Q2 2025, which can be mainly attributed to an 11% increase in production between both quarters due to the timing differences of Minera Valle Central's annual maintenance shutdown, which in 2024 took place in the second quarter, but this year took place during the first quarter. The most significant cost variances between the two quarters were consumption-driven. They included higher power costs of $1.2 million, line costs of $0.6 million, and other direct tolling costs, such as copper reagents, of $0.8 million. We now know July's average provisional price, or average price, which is $4.44. we now know july's average provisional price or average price which is $4.44 A 10% increase or decrease from the $4.42 per pound provisional price used on June 30, 2025, would result in a $6.9 million change in revenue in Q3 2025 regarding Q2 2025 production. a 10% increase or decrease from the $4.42 per pound provisional price used on june 30 2025 would result in a $6.9 million change in revenue in q3 2025 regarding q2 2025 production Tolling and production costs increased 10% from $35.1 million in Q2 2024 to $38.7 million in Q2 2025, which can be mainly attributed to an 11% increase in production between both quarters due to the timing differences of Minera Valle Central's annual maintenance shutdown, which in 2024 took place in the second quarter, but this year took place during the first quarter. tolling and production costs increased 10% from $35.1 million in q2 2024 to $38.7 million in q2 2025 which can be mainly attributed to an 11% increase in production between both quarters due to the timing differences of minera valle central's annual maintenance shutdown which in 2024 took place in the second quarter but this year took place during the first quarter The most significant cost variances between the two quarters were consumption-driven. the most significant cost variances between the two quarters were consumption-driven They included higher power costs of $1.2 million, line costs of $0.6 million, and other direct tolling costs, such as copper reagents, of $0.8 million. they included higher power costs of $1.2 million line costs of $0.6 million and other direct tolling costs such as copper reagents of $0.8 million Moly production costs increased by $0.3 million due to higher production associated with more processing of historic tailings in Q2 2025. The gross profit after revenue and production costs was $12.1 million compared to $16.5 million in Q2 2024. General and administration expenses were $1 million compared to $1.1 million in Q2 2024. These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.2 million, and share-based payments of $0.2 million. Other gains were $0.1 million compared to $0.6 million in the second quarter of 2024, driven mainly by foreign exchange gains in both periods. Finance expense was $0.4 million, consistent with Q2 2024, and consisted entirely of interest on loans and bank charges. Income tax expense was $2.6 million compared to $5.6 million in Q2 2024. Moly production costs increased by $0.3 million due to higher production associated with more processing of historic tailings in Q2 2025. moly production costs increased by $0.3 million due to higher production associated with more processing of historic tailings in q2 2025 The gross profit after revenue and production costs was $12.1 million compared to $16.5 million in Q2 2024. the gross profit after revenue and production costs was $12.1 million compared to $16.5 million in q2 2024 General and administration expenses were $1 million compared to $1.1 million in Q2 2024. general and administration expenses were $1 million compared to $1.1 million in q2 2024 These expenses included salaries, management, and professional fees of $0.6 million, office and general expenses of $0.2 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 $0.2 million and share-based payments of $0.2 million Other gains were $0.1 million compared to $0.6 million in the second quarter of 2024, driven mainly by foreign exchange gains in both periods. other gains were $0.1 million compared to $0.6 million in the second quarter of 2024 driven mainly by foreign exchange gains in both periods Finance expense was $0.4 million, consistent with Q2 2024, and consisted entirely of interest on loans and bank charges. finance expense was $0.4 million consistent with q2 2024 and consisted entirely of interest on loans and bank charges Income tax expense was $2.6 million compared to $5.6 million in Q2 2024. income tax expense was $2.6 million compared to $5.6 million in q2 2024 Beginning this quarter, we've included a breakdown of the company's tax expense in the P&L, separating current taxes from deferred income taxes. The current tax represents both actual income tax for Minera Valle Central and repatriation taxes to bring funds from Chile to Canada. Deferred income tax is an accounting figure used to reconcile timing differences, in Amerigo' case, primarily arising from the differences in the timings of financial and tax depreciation. Current tax expense in Q2 2025 was $4.4 million compared to $6.3 million in Q2 2024. Before moving on to the statement of financial decisions, I will mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. Amerigo's cash cost in Q2 2025 was $1.82 per pound, decreasing from $1.96 per pound in Q2 2024. Beginning this quarter, we've included a breakdown of the company's tax expense in the P&L, separating current taxes from deferred income taxes. beginning this quarter we've included a breakdown of the company's tax expense in the p&l separating current taxes from deferred income taxes The current tax represents both actual income tax for Minera Valle Central and repatriation taxes to bring funds from Chile to Canada. the current tax represents both actual income tax for minera valle central and repatriation taxes to bring funds from chile to canada Deferred income tax is an accounting figure used to reconcile timing differences, in Amerigo ' case, primarily arising from the differences in the timings of financial and tax depreciation. deferred income tax is an accounting figure used to reconcile timing differences in amerigo' case primarily arising from the differences in the timings of financial and tax depreciation Current tax expense in Q2 2025 was $4.4 million compared to $6.3 million in Q2 2024. current tax expense in q2 2025 was $4.4 million compared to $6.3 million in q2 2024 Before moving on to the statement of financial decisions, I will mention some non-IFRS measures used by the company: cash cost, total cost, and all-in sustaining costs. Amerigo 's cash cost in Q2 2025 was $1.82 per pound, decreasing from $1.96 per pound in Q2 2024. before moving on to the statement of financial decisions i will mention some non-ifrs measures used by the company cash cost total cost and all-in sustaining costs. amerigo 's cash cost in q2 2025 was $1.82 per pound decreasing from $1.96 per pound in q2 2024 The $0.14 per pound reduction in cash cost was primarily due to a $0.19 per pound decrease in smelting and refining charges in response to the current annual benchmark, offset by increases of $0.03 per pound in line costs and other direct costs. Total costs decreased to $3.55 per pound, a decrease of $0.23 per pound from Q2 2024's $3.78 per pound. This was the result of a $0.14 reduction in cash cost, a $0.04 decrease in DEP royalties, and a $0.05 decrease in depreciation. All-in sustaining costs, which include total costs, sustaining capex, and corporate tier name, were $3.69 per pound in Q2 2025 compared to $4.20 in Q2 2024. This is the result of per pound decreases of $0.23 in total cost, $0.27 in sustaining CapEx, and $0.01 in corporate to your name expenses. The $0.14 per pound reduction in cash cost was primarily due to a $0.19 per pound decrease in smelting and refining charges in response to the current annual benchmark, offset by increases of $0.03 per pound in line costs and other direct costs. the $0.14 per pound reduction in cash cost was primarily due to a $0.19 per pound decrease in smelting and refining charges in response to the current annual benchmark offset by increases of $0.03 per pound in line costs and other direct costs Total costs decreased to $3.55 per pound, a decrease of $0.23 per pound from Q2 2024's $3.78 per pound. total costs decreased to $3.55 per pound a decrease of $0.23 per pound from q2 2024's $3.78 per pound This was the result of a $0.14 reduction in cash cost, a $0.04 decrease in DEP royalties, and a $0.05 decrease in depreciation. this was the result of a $0.14 reduction in cash cost a $0.04 decrease in dep royalties and a $0.05 decrease in depreciation All-in sustaining costs, which include total costs, sustaining capex, and corporate tier name, were $3.69 per pound in Q2 2025 compared to $4.20 in Q2 2024. all-in sustaining costs which include total costs sustaining capex and corporate tier name were $3.69 per pound in q2 2025 compared to $4.20 in q2 2024 This is the result of per pound decreases of $0.23 in total cost, $0.27 in sustaining CapEx, and $0.01 in corporate to your name expenses. this is the result of per pound decreases of $0.23 in total cost $0.27 in sustaining capex and $0.01 in corporate to your name expenses Moving on to the statement of financial position, on June 30, 2025, the company had cash equivalents of $23.3 million, restricted cash of $0.9 million, and had a working capital deficiency of $5.4 million, down 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 $19.7 million at the end of June 2025. Current income tax liabilities also decreased from $8.5 million on December 31, 2024 to $0.1 million. Most of the tax balance due at the end of 2024 related to income tax owing by MVC in respect of 2024 earnings, which exceeded the monthly tax installments made. This tax was paid in April 2025 when MVC's annual tax declaration was filed in Chile. Moving on to the statement of financial position, on June 30, 2025, the company had cash equivalents of $23.3 million, restricted cash of $0.9 million, and had a working capital deficiency of $5.4 million, down from a working capital deficiency of $6.5 million on December 31, 2024. moving on to the statement of financial position on june 30 2025 the company had cash equivalents of $23.3 million restricted cash of $0.9 million and had a working capital deficiency of $5.4 million down 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 $19.7 million at the end of June 2025. trade and accounts payable decreased from $24.6 million as of december 31 2024 to $19.7 million at the end of june 2025 Current income tax liabilities also decreased from $8.5 million on December 31, 2024 to $0.1 million. current income tax liabilities also decreased from $8.5 million on december 31 2024 to $0.1 million Most of the tax balance due at the end of 2024 related to income tax owing by MVC in respect of 2024 earnings, which exceeded the monthly tax installments made. most of the tax balance due at the end of 2024 related to income tax owing by mvc in respect of 2024 earnings which exceeded the monthly tax installments made This tax was paid in April 2025 when MVC's annual tax declaration was filed in Chile. this tax was paid in april 2025 when mvc's annual tax declaration was filed in chile Note that in line with Chilean tax requirements, MVC placed monthly tax installments based on a percentage of revenue, which may or may not be close to the final corporate tax for a given year. In April of the following year, when the tax declaration is filed for the previous year, any difference in the amount owing exceeding the monthly tax installments is paid. You will notice that the company's debt, which is shown as $7 million net of transaction fees, is now shown fully as current debt. As guided to the market, we intend to make the remaining scheduled payment of $4 million in the second half of the year and prepay the remaining $3.5 million, which is formally due on June 30, 2026. In this way, Amerigo will be in a zero-debt position by the end of 2025. Note that in line with Chilean tax requirements, MVC placed monthly tax installments based on a percentage of revenue, which may or may not be close to the final corporate tax for a given year. note that in line with chilean tax requirements mvc placed monthly tax installments based on a percentage of revenue which may or may not be close to the final corporate tax for a given year In April of the following year, when the tax declaration is filed for the previous year, any difference in the amount owing exceeding the monthly tax installments is paid. in april of the following year when the tax declaration is filed for the previous year any difference in the amount owing exceeding the monthly tax installments is paid You will notice that the company's debt, which is shown as $7 million net of transaction fees, is now shown fully as current debt. you will notice that the company's debt which is shown as $7 million net of transaction fees is now shown fully as current debt As guided to the market, we intend to make the remaining scheduled payment of $4 million in the second half of the year and prepay the remaining $3.5 million, which is formally due on June 30, 2026. as guided to the market we intend to make the remaining scheduled payment of $4 million in the second half of the year and prepay the remaining $3.5 million which is formally due on june 30 2026 In this way, Amerigo will be in a zero-debt position by the end of 2025. in this way amerigo will be in a zero-debt position by the end of 2025 Regarding cash flows during the quarter, Amerigo generated $11.9 million in cash flows from operations. Net operating cash flow, which includes changes in non-cash working capital, was $6.3 million. Included in the changes in non-cash working capital are payments related to current income taxes, income tax liabilities, rather, of $9.5 million, which includes the 2024 income tax payments we previously discussed. These decreases in accounts payable and income tax result in an outlay of cash, thereby decreasing the cash flow from operations net of these non-cash working capital changes. In terms of uses of cash during the quarter, $1.4 million was used for investing activities, in other words, for CapEx payments, and $9.4 million was used in financing activities. Regarding cash flows during the quarter, Amerigo generated $11.9 million in cash flows from operations. regarding cash flows during the quarter amerigo generated $11.9 million in cash flows from operations Net operating cash flow, which includes changes in non-cash working capital, was $6.3 million. net operating cash flow which includes changes in non-cash working capital was $6.3 million Included in the changes in non-cash working capital are payments related to current income taxes, income tax liabilities, rather, of $9.5 million, which includes the 2024 income tax payments we previously discussed. included in the changes in non-cash working capital are payments related to current income taxes income tax liabilities rather of $9.5 million which includes the 2024 income tax payments we previously discussed These decreases in accounts payable and income tax result in an outlay of cash, thereby decreasing the cash flow from operations net of these non-cash working capital changes. these decreases in accounts payable and income tax result in an outlay of cash thereby decreasing the cash flow from operations net of these non-cash working capital changes In terms of uses of cash during the quarter, $1.4 million was used for investing activities, in other words, for CapEx payments, and $9.4 million was used in financing activities. in terms of uses of cash during the quarter $1.4 million was used for investing activities in other words for capex payments and $9.4 million was used in financing activities These financing activities included Amerigo Resources returning $7.6 million to shareholders, $3.5 million through Amerigo's regular quarterly dividend of $0.03 Canadian per share, and $4 million from the purchase and cancellation of 3.1 million common shares through a normal course issuer bid. The company also paid $4 million on borrowings, including $2.3 million paid with restricted cash. Briefly touching on the results for the first half of the year compared to guidance, our cash cost for the six months ended June 30, 2025, was $2 per pound, and our forecast indicates that we are 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 any signing bonus associated with a three-year collective labor agreement with Minera Valle Central's operator's union that will occur later this year. These financing activities included Amerigo Resources returning $7.6 million to shareholders, $3.5 million through Amerigo 's regular quarterly dividend of $0.03 Canadian per share, and $4 million from the purchase and cancellation of 3.1 million common shares through a normal course issuer bid. these financing activities included amerigo resources returning $7.6 million to shareholders $3.5 million through amerigo 's regular quarterly dividend of $0.03 canadian per share and $4 million from the purchase and cancellation of 3.1 million common shares through a normal course issuer bid The company also paid $4 million on borrowings, including $2.3 million paid with restricted cash. the company also paid $4 million on borrowings including $2.3 million paid with restricted cash Briefly touching on the results for the first half of the year compared to guidance, our cash cost for the six months ended June 30, 2025, was $2 per pound, and our forecast indicates that we are on track to meet the company's 2025 guidance of an annual normalized cash cost of $1.93 per pound. briefly touching on the results for the first half of the year compared to guidance our cash cost for the six months ended june 30 2025 was $2 per pound and our forecast indicates that we are 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 any signing bonus associated with a three-year collective labor agreement with Minera Valle Central's operator's union that will occur later this year. our normalized cash cost guidance excludes any signing bonus associated with a three-year collective labor agreement with minera valle central's operator's union that will occur later this year In 2025, Minera Valle Central is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustained CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. Year-to-date 2025, CapEx additions were $6 million and CapEx payments were $8.2 million. We remain on track with our annual CapEx guidance. We will report Amerigo' Q3 2025 financial results in October 2025 and want to thank you for your continued interest in the company. We will now take questions from call participants. In 2025, Minera Valle Central is expected to incur CapEx of $13 million, of which $4.4 million is optimization CapEx, $4.4 million is sustained CapEx, and $4.2 million is CapEx associated with the annual plant maintenance shutdown and strategic spares. in 2025 minera valle central is expected to incur capex of $13 million of which $4.4 million is optimization capex $4.4 million is sustained capex and $4.2 million is capex associated with the annual plant maintenance shutdown and strategic spares Year-to-date 2025, CapEx additions were $6 million and CapEx payments were $8.2 million. year-to-date 2025 capex additions were $6 million and capex payments were $8.2 million We remain on track with our annual CapEx guidance. we remain on track with our annual capex guidance We will report Amerigo ' Q3 2025 financial results in October 2025 and want to thank you for your continued interest in the company. we will report amerigo' q3 2025 financial results in october 2025 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 7: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on the telephone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press the star followed by the two. If you're using a speakerphone, please lift the handset before pressing any keys. The first question comes from Terry Sumpto at CIBC Markets. Please go ahead. Thank you. thank you Ladies and gentlemen, we will now begin the question- and- answer session. ladies and gentlemen we will now begin the question- and- answer session Should you have a question, please press the star followed by the one on the telephone. should you have a question please press the star followed by the one on the telephone You will hear a prompt that your hand has been raised. you will hear a prompt that your hand has been raised If you wish to decline from the polling process, please press the star followed by the two. if you wish to decline from the polling process please press the star followed by the two If you're using a speakerphone, please lift the handset before pressing any keys. if you're using a speakerphone please lift the handset before pressing any keys The first question comes from Terry Sumpto at CIBC Markets. the first question comes from terry sumpto at cibc markets Please go ahead. please go ahead

Speaker 3: Yes, good afternoon, everybody. I believe it's already been flagged that there was really a lot of problems with the connection while Aurora was speaking, particularly about the outlook for copper and copper markets. I think you said that the text of the speech will be available on the website, so I don't expect you to repeat it here. I did want to ask, though, about the likelihood, because I think you mentioned it, but I didn't get it because the phone broke up, of a positive share value adjustment in the third quarter, given where copper prices are and have been. Is that a reasonable expectation? Yes, good afternoon, everybody. yes good afternoon everybody I believe it's already been flagged that there was really a lot of problems with the connection while Aurora was speaking, particularly about the outlook for copper and copper markets. i believe it's already been flagged that there was really a lot of problems with the connection while aurora was speaking particularly about the outlook for copper and copper markets I think you said that the text of the speech will be available on the website, so I don't expect you to repeat it here. i think you said that the text of the speech will be available on the website so i don't expect you to repeat it here I did want to ask, though, about the likelihood, because I think you mentioned it, but I didn't get it because the phone broke up, of a positive share value adjustment in the third quarter, given where copper prices are and have been. i did want to ask though about the likelihood because i think you mentioned it but i didn't get it because the phone broke up of a positive share value adjustment in the third quarter given where copper prices are and have been Is that a reasonable expectation? is that a reasonable expectation

Speaker 2: Terry, first of all, sorry about that. We did a sound check before we had the call, and we didn't have any problems. It's unfortunate that I didn't come through. Yes, the text of the earnings call will be available on the website as soon as we get it from the supplier. I did speak about the fact that July has been a good month, both in terms of production, and we also saw, because now we have the average prices for the month of July, $4.44 per pound. We marked to market on average at $4.42 at the end of June 30, as Carmen was mentioning. Right now, as we speak, there is a small positive adjustment on a pricing basis for the first month that has settled, which is, essentially, we have settled now April after July average prices. The outlook remains positive from our perspective. Terry, first of all, sorry about that. terry first of all sorry about that We did a sound check before we had the call, and we didn't have any problems. we did a sound check before we had the call and we didn't have any problems It's unfortunate that I didn't come through. it's unfortunate that i didn't come through Yes, the text of the earnings call will be available on the website as soon as we get it from the supplier. yes the text of the earnings call will be available on the website as soon as we get it from the supplier I did speak about the fact that July has been a good month, both in terms of production, and we also saw, because now we have the average prices for the month of July, $4.44 per pound. i did speak about the fact that july has been a good month both in terms of production and we also saw because now we have the average prices for the month of july $4.44 per pound We marked to market on average at $4.42 at the end of June 30, as Carmen was mentioning. we marked to market on average at $4.42 at the end of june 30 as carmen was mentioning Right now, as we speak, there is a small positive adjustment on a pricing basis for the first month that has settled, which is, essentially, we have settled now April after July average prices. right now as we speak there is a small positive adjustment on a pricing basis for the first month that has settled which is essentially we have settled now april after july average prices The outlook remains positive from our perspective. the outlook remains positive from our perspective I did speak about, and hopefully that wasn't broken, what happened yesterday with the clarification of what the U.S. tariff is going to be looking like, essentially exempting copper concentrates and unrefined copper from the tariffs. That caused a sharp correction of that arbitrage that we have been seeing between COMEX and the LME markets for most of the year. If you look at copper COMEX price today and the LME, there's a $0.03 difference, which rises back to normal in terms of what you normally have in those markets. Does that answer your question? I did speak about, and hopefully that wasn't broken, what happened yesterday with the clarification of what the U.S. tariff is going to be looking like, essentially exempting copper concentrates and unrefined copper from the tariffs. i did speak about and hopefully that wasn't broken what happened yesterday with the clarification of what the u.s tariff is going to be looking like essentially exempting copper concentrates and unrefined copper from the tariffs That caused a sharp correction of that arbitrage that we have been seeing between COMEX and the LME markets for most of the year. that caused a sharp correction of that arbitrage that we have been seeing between comex and the lme markets for most of the year If you look at copper COMEX price today and the LME, there's a $0.03 difference, which rises back to normal in terms of what you normally have in those markets. if you look at copper comex price today and the lme there's a $0.03 difference which rises back to normal in terms of what you normally have in those markets Does that answer your question? does that answer your question

Speaker 3: Yes, that's fine. I'll read the text. My second question is sort of a left field, but I'm wondering if you've heard of a company called Stillbright. Yes, that's fine. yes that's fine I'll read the text. i'll read the text My second question is sort of a left field, but I'm wondering if you've heard of a company called Stillbright. my second question is sort of a left field but i'm wondering if you've heard of a company called stillbright

Speaker 2: No, I haven't heard about them. No, I haven't heard about them. no i haven't heard about them

Speaker 3: Okay. I'll leave that with you to research. Stillbright, I just saw an interview today on television. I'd never heard of it before. It's a startup, kind of a technology company that has received some seed financing. What they have is a new process for essentially smelting copper, but it's through flotation cells, and they use vanadium as a catalyst, and they're able to recover the copper without producing the waste products that many smelters do, lead and arsenic. They can do it at a much lower cost and quicker startup to build these things. From what the person said, I think it's unlikely that it would be targeted towards processing tailings. I think it's more an alternative to shipping ore to China to be smelted and doing it domestically in the U.S. and other countries. Anyway, worth researching. I'll leave that with you. Okay. okay I'll leave that with you to research. i'll leave that with you to research Stillbright, I just saw an interview today on television. stillbright i just saw an interview today on television I'd never heard of it before. i'd never heard of it before It's a startup, kind of a technology company that has received some seed financing. it's a startup kind of a technology company that has received some seed financing What they have is a new process for essentially smelting copper, but it's through flotation cells, and they use vanadium as a catalyst, and they're able to recover the copper without producing the waste products that many smelters do, lead and arsenic. what they have is a new process for essentially smelting copper but it's through flotation cells and they use vanadium as a catalyst and they're able to recover the copper without producing the waste products that many smelters do lead and arsenic They can do it at a much lower cost and quicker startup to build these things. they can do it at a much lower cost and quicker startup to build these things From what the person said, I think it's unlikely that it would be targeted towards processing tailings. from what the person said i think it's unlikely that it would be targeted towards processing tailings I think it's more an alternative to shipping ore to China to be smelted and doing it domestically in the U.S. and other countries. i think it's more an alternative to shipping ore to china to be smelted and doing it domestically in the u.s and other countries Anyway, worth researching. anyway worth researching I'll leave that with you. i'll leave that with you The only other question I had actually is for a Carmen question. It'd be exciting for Carmen. It's a two-part question. One is that with all the depreciation we're taking at over $22 million a year, which I know helps with cash conservation by deferring taxes, because it's tax depreciation. I don't know what CCA is versus depreciation rates in Chile. In any event, it seems to me that the fixed assets now are being considerably undervalued in the balance sheet. Related to that balance sheet, we also have $24 million of other assets, and I forget what those are. The question is, are the assets undervalued in the balance sheet, and what are the $24 million of other assets? The only other question I had actually is for a Carmen question. the only other question i had actually is for a carmen question It'd be exciting for Carmen. it'd be exciting for carmen It's a two-part question. it's a two-part question One is that with all the depreciation we're taking at over $22 million a year, which I know helps with cash conservation by deferring taxes, because it's tax depreciation. one is that with all the depreciation we're taking at over $22 million a year which i know helps with cash conservation by deferring taxes because it's tax depreciation I don't know what CCA is versus depreciation rates in Chile. i don't know what cca is versus depreciation rates in chile In any event, it seems to me that the fixed assets now are being considerably undervalued in the balance sheet. in any event it seems to me that the fixed assets now are being considerably undervalued in the balance sheet Related to that balance sheet, we also have $24 million of other assets, and I forget what those are. related to that balance sheet we also have $24 million of other assets and i forget what those are The question is, are the assets undervalued in the balance sheet, and what are the $24 million of other assets? the question is are the assets undervalued in the balance sheet and what are the $24 million of other assets

Speaker 1: I think you have to remember when you look at depreciation, tax depreciation and accounting depreciation are different. What we're taking on the P&L, that's just our standard depreciation rate over the life of the asset, whereas the tax depreciation is completely different. It's not, you know, not in a, we don't do it in a way to save taxes on the accounting side. I think you have to remember when you look at depreciation, tax depreciation and accounting depreciation are different. i think you have to remember when you look at depreciation tax depreciation and accounting depreciation are different What we're taking on the P&L, that's just our standard depreciation rate over the life of the asset, whereas the tax depreciation is completely different. what we're taking on the p&l that's just our standard depreciation rate over the life of the asset whereas the tax depreciation is completely different It's not, you know, not in a, we don't do it in a way to save taxes on the accounting side. it's not you know not in a we don't do it in a way to save taxes on the accounting side

Speaker 3: Okay. Sorry. I phrased the question improperly. Forget about the tax depreciation. It just seems to me that even with the depreciation rates the company uses, relative to the age and the value of the assets, the assets on the balance sheet are probably understated, which is a good thing for us. I guess it doesn't matter a lot given that there's no fixed debt on the balance sheet as well. There's no leverage for that. Still, book value matters to some people. Okay. okay Sorry. sorry I phrased the question improperly. i phrased the question improperly Forget about the tax depreciation. forget about the tax depreciation It just seems to me that even with the depreciation rates the company uses, relative to the age and the value of the assets, the assets on the balance sheet are probably understated, which is a good thing for us. it just seems to me that even with the depreciation rates the company uses relative to the age and the value of the assets the assets on the balance sheet are probably understated which is a good thing for us I guess it doesn't matter a lot given that there's no fixed debt on the balance sheet as well. i guess it doesn't matter a lot given that there's no fixed debt on the balance sheet as well There's no leverage for that. there's no leverage for that Still, book value matters to some people. still book value matters to some people

Speaker 1: I wouldn't say the assets are understated. I wouldn't say the assets are understated. i wouldn't say the assets are understated

Speaker 3: Okay. Can you answer the other question? What are the other assets, $24 million? Okay. okay Can you answer the other question? can you answer the other question What are the other assets, $24 million? what are the other assets $24 million

Speaker 1: Sure. That relates to all the plant, plant and equipment that's on site, mostly the plant. Sure. sure That relates to all the plant, plant and equipment that's on site, mostly the plant. that relates to all the plant plant and equipment that's on site mostly the plant

Speaker 3: Other assets are plants, not fixed assets. Other assets are plants, not fixed assets. other assets are plants not fixed assets

Speaker 1: Machinery and equipment would relate to all of the other assets that are coming. Machinery and equipment would relate to all of the other assets that are coming. machinery and equipment would relate to all of the other assets that are coming

Speaker 3: All right. Okay. That's part of the whole plant and equipment then. Okay, that's a good thing. All right. all right Okay. okay That's part of the whole plant and equipment then. that's part of the whole plant and equipment then Okay, that's a good thing. okay that's a good thing

Speaker 1: Exactly. Yeah. Exactly. exactly Yeah. yeah

Speaker 3: All right. All right. all right

Speaker 1: That's the majority of what we have in fixed assets on the balance sheet. There's also the machinery and equipment that we use as well. That's the majority of what we have in fixed assets on the balance sheet. that's the majority of what we have in fixed assets on the balance sheet There's also the machinery and equipment that we use as well. there's also the machinery and equipment that we use as well

Speaker 3: Okay. If I could add just one final question for Aurora. It seems to me that in the quarter we've had, obviously, the U.S. copper price up because of the Trump tariffs and that's now gone away, still, I would have thought there would have been a greater arbitrage effect on the LME price than we actually saw. Can you explain why that didn't happen? Okay. okay If I could add just one final question for Aurora. if i could add just one final question for aurora It seems to me that in the quarter we've had, obviously, the U.S. copper price up because of the Trump tariffs and that's now gone away, still, I would have thought there would have been a greater arbitrage effect on the LME price than we actually saw. it seems to me that in the quarter we've had obviously the u.s copper price up because of the trump tariffs and that's now gone away still i would have thought there would have been a greater arbitrage effect on the lme price than we actually saw Can you explain why that didn't happen? can you explain why that didn't happen

Speaker 2: Terry, what we basically do is we mark to market, as real as these close based on the progression of the copper prices at month end. We sell those prices at the actual average price for the LME of the month in question. For example, when you're looking at the average prices that we had in 2023 for the second quarter, I'll tell you what they were, although this is available online. The average LME copper price for April was $4.17. There was a significant decline from $4.42-$4.17 in April. That was the final price for January sales, which was the April LME price, $4.17. The final settlement price for the February sales, which was the May price, was $4.32. The final settlement price for the March sales was the June average price of $4.46. If you're looking at what happened there, I didn't see that huge pickup. Terry, what we basically do is we mark to market, as real as these close based on the progression of the copper prices at month end. terry what we basically do is we mark to market as real as these close based on the progression of the copper prices at month end We sell those prices at the actual average price for the LME of the month in question. we sell those prices at the actual average price for the lme of the month in question For example, when you're looking at the average prices that we had in 2023 for the second quarter, I'll tell you what they were, although this is available online. for example when you're looking at the average prices that we had in 2023 for the second quarter i'll tell you what they were although this is available online The average LME copper price for April was $4.17. the average lme copper price for april was $4.17 There was a significant decline from $4.42- $4.17 in April. there was a significant decline from $4.42- $4.17 in april That was the final price for January sales, which was the April LME price, $4.17. that was the final price for january sales which was the april lme price $4.17 The final settlement price for the February sales, which was the May price, was $4.32. the final settlement price for the february sales which was the may price was $4.32 The final settlement price for the March sales was the June average price of $4.46. the final settlement price for the march sales was the june average price of $4.46 If you're looking at what happened there, I didn't see that huge pickup. if you're looking at what happened there i didn't see that huge pickup April wasn't a defining moment or a defining month of negative adjustments from $4.42-$4.17. For May, it was also settled at a lower price of $4.32 compared to the $4.42 that we had marked to market. The only month in the second quarter where there were positive settlement adjustments compared to our marked to market at March 31 was the month of June, $4.46. I'm sorry if this all sounds so confusing. We try to simplify all of that information in the notes to our actual news release. All of that information is there, but there certainly was a negative final settlement when you looked at the April realized prices of $4.17. April wasn't a defining moment or a defining month of negative adjustments from $4.42- $4.17. april wasn't a defining moment or a defining month of negative adjustments from $4.42- $4.17 For May, it was also settled at a lower price of $4.32 compared to the $4.42 that we had marked to market. for may it was also settled at a lower price of $4.32 compared to the $4.42 that we had marked to market The only month in the second quarter where there were positive settlement adjustments compared to our marked to market at March 31 was the month of June, $4.46. the only month in the second quarter where there were positive settlement adjustments compared to our marked to market at march 31 was the month of june $4.46 I'm sorry if this all sounds so confusing. i'm sorry if this all sounds so confusing We try to simplify all of that information in the notes to our actual news release. we try to simplify all of that information in the notes to our actual news release All of that information is there, but there certainly was a negative final settlement when you looked at the April realized prices of $4.17. all of that information is there but there certainly was a negative final settlement when you looked at the april realized prices of $4.17

Speaker 3: Right. I get that. I actually do understand it because I've been following the company a long time. I didn't phrase the question very well, I guess. I was just thinking about the LME price versus the spot price and the U.S. copper price and why there wasn't a greater pull on the LME price. Nothing to do with Amerigo. Maybe that's a question that can't be answered, but it just surprised me that there wouldn't have been a greater effect on the LME. Right. right I get that. i get that I actually do understand it because I've been following the company a long time. i actually do understand it because i've been following the company a long time I didn't phrase the question very well, I guess. i didn't phrase the question very well i guess I was just thinking about the LME price versus the spot price and the U.S. copper price and why there wasn't a greater pull on the LME price. i was just thinking about the lme price versus the spot price and the u.s copper price and why there wasn't a greater pull on the lme price Nothing to do with Amerigo. nothing to do with amerigo Maybe that's a question that can't be answered, but it just surprised me that there wouldn't have been a greater effect on the LME. maybe that's a question that can't be answered but it just surprised me that there wouldn't have been a greater effect on the lme

Speaker 2: A greater positive or a greater negative effect? A greater positive or a greater negative effect? a greater positive or a greater negative effect

Speaker 3: If the U.S., if the price of copper is higher in the U.S. because Americans are buying it to front run the tariffs, you would expect that would increase demand for copper even globally, which would reflect on the LME settlement prices. If the U.S., if the price of copper is higher in the U.S. because Americans are buying it to front run the tariffs, you would expect that would increase demand for copper even globally, which would reflect on the LME settlement prices. if the u.s if the price of copper is higher in the u.s because americans are buying it to front run the tariffs you would expect that would increase demand for copper even globally which would reflect on the lme settlement prices

Speaker 2: I think it did. I mentioned that, Curt, that was one of the things that I mentioned on the script. The run-up that we saw on COMEX prices during the quarter and basically during the first semester of the year had a positive effect on the LME. I think it did pull it up, and now. I think it did. i think it did I mentioned that, Curt, that was one of the things that I mentioned on the script. i mentioned that curt that was one of the things that i mentioned on the script The run-up that we saw on COMEX prices during the quarter and basically during the first semester of the year had a positive effect on the LME. the run-up that we saw on comex prices during the quarter and basically during the first semester of the year had a positive effect on the lme I think it did pull it up, and now. i think it did pull it up and now

Speaker 3: Okay. Okay. okay

Speaker 2: If you look at the prices today, $4.39 COMEX, LME spot price $4.36, we're back to normal. I think that trading run opened up a lot of eyes into what's going on with the copper fundamental structure, not just a trading story, which is a benefit for the industry in general, for all of us, for sure. If you look at the prices today, $4.39 COMEX, LME spot price $4.36, we're back to normal. if you look at the prices today $4.39 comex lme spot price $4.36 we're back to normal I think that trading run opened up a lot of eyes into what's going on with the copper fundamental structure, not just a trading story, which is a benefit for the industry in general, for all of us, for sure. i think that trading run opened up a lot of eyes into what's going on with the copper fundamental structure not just a trading story which is a benefit for the industry in general for all of us for sure

Speaker 3: Right. Okay. That's good. I'll read, I'll read, Carmen. I don't want to take up more time now, but thanks for everything. That's great. Right. right Okay. okay That's good. that's good I'll read, I'll read, Carmen. i'll read i'll read carmen I don't want to take up more time now, but thanks for everything. i don't want to take up more time now but thanks for everything That's great. that's great

Speaker 7: Thank you. The next question comes from Ben Pirie at Atrium Research. Please go ahead. Thank you. thank you The next question comes from Ben Pirie at Atrium Research . the next question comes from ben pirie at atrium research Please go ahead. please go ahead

Speaker 4: Hi, Aurora, Graham, and Carmen. It's Ben from Atrium Research again. First, Atrium dropped on a strong quarter, and it's good to see the shareholders are rewarding you guys for all the hard work. Just a couple of questions here. I think Terry covered a couple of them around the LME prices there. In terms of capex, obviously, you know, the main inch fell down in Q1, so it was elevated in Q2, it was quite low. What can we expect in Q3 and Q4 from a capex perspective? Hi, Aurora, Graham, and Carmen. hi aurora graham and carmen It's Ben from Atrium Research again. it's ben from atrium research again First, Atrium dropped on a strong quarter, and it's good to see the shareholders are rewarding you guys for all the hard work. first atrium dropped on a strong quarter and it's good to see the shareholders are rewarding you guys for all the hard work Just a couple of questions here. just a couple of questions here I think Terry covered a couple of them around the LME prices there. i think terry covered a couple of them around the lme prices there In terms of capex, obviously, you know, the main inch fell down in Q1, so it was elevated in Q2, it was quite low. in terms of capex obviously you know the main inch fell down in q1 so it was elevated in q2 it was quite low What can we expect in Q3 and Q4 from a capex perspective? what can we expect in q3 and q4 from a capex perspective

Speaker 2: You couldn't expect any changes from the original guidance, which was $13 million. I think Carmen spoke about that. What is in those $13 million? We have essentially five process optimization projects, which have a price tag of $12.4 million. This includes finalizing some projects that we initiated in 2024, basically to expand and optimize the control of flotation cells and improve water evacuation in Coconus. We also have a project to optimize flotation in the Cascades. We have the addition of a second thickener for the NIPS concentrate. What has transpired in terms of Q1 and Q2? We had a front-loading of a lot of the capex as associated with two things: the timing of the plant maintenance shutdown and the workload of those optimization projects. We're on track to not have more than that $13 million of total capital for the year. You couldn't expect any changes from the original guidance, which was $13 million. you couldn't expect any changes from the original guidance which was $13 million I think Carmen spoke about that. i think carmen spoke about that What is in those $13 million? what is in those $13 million We have essentially five process optimization projects, which have a price tag of $12.4 million. we have essentially five process optimization projects which have a price tag of $12.4 million This includes finalizing some projects that we initiated in 2024, basically to expand and optimize the control of flotation cells and improve water evacuation in Coconus. this includes finalizing some projects that we initiated in 2024 basically to expand and optimize the control of flotation cells and improve water evacuation in coconus We also have a project to optimize flotation in the Cascades. we also have a project to optimize flotation in the cascades We have the addition of a second thickener for the NIPS concentrate. we have the addition of a second thickener for the nips concentrate What has transpired in terms of Q1 and Q2? what has transpired in terms of q1 and q2 We had a front-loading of a lot of the capex as associated with two things: the timing of the plant maintenance shutdown and the workload of those optimization projects. we had a front-loading of a lot of the capex as associated with two things the timing of the plant maintenance shutdown and the workload of those optimization projects We're on track to not have more than that $13 million of total capital for the year. we're on track to not have more than that $13 million of total capital for the year I did mention $4.4 million for optimization. The other categories are $4.2 million for a plant shutdown and $4 million just for sustaining capex, growing sustaining capex. I did mention $4.4 million for optimization. i did mention $4.4 million for optimization The other categories are $4.2 million for a plant shutdown and $4 million just for sustaining capex, growing sustaining capex. the other categories are $4.2 million for a plant shutdown and $4 million just for sustaining capex growing sustaining capex

Speaker 4: Okay. Understood. Thank you. In terms of share buybacks, we did hear you were cutting in and out a little bit, but on the buybacks in particular in Q2, there was obviously quite a jump from Q1. I think it was a 4 or 5X in terms of shares bought back. Why such a big change? In terms of consistency going into Q3 and Q4, I know you mentioned you're sort of going to be opportunistic with the buybacks, but can you just touch on this jump from Q1-Q2? Okay. okay Understood. understood Thank you. thank you In terms of share buybacks, we did hear you were cutting in and out a little bit, but on the buybacks in particular in Q2, there was obviously quite a jump from Q1. in terms of share buybacks we did hear you were cutting in and out a little bit but on the buybacks in particular in q2 there was obviously quite a jump from q1 I think it was a 4 or 5X in terms of shares bought back. i think it was a 4 or 5x in terms of shares bought back Why such a big change? why such a big change In terms of consistency going into Q3 and Q4, I know you mentioned you're sort of going to be opportunistic with the buybacks, but can you just touch on this jump from Q1- Q2? in terms of consistency going into q3 and q4 i know you mentioned you're sort of going to be opportunistic with the buybacks but can you just touch on this jump from q1- q2

Speaker 2: Yes. I think what was happening was basically strong cash generation and the recognition that there was, especially in the second quarter, an opportunity of buying back those shares at a really good price. I did mention that our average buyback price in the quarter was $1.78. I think that was for the first semester. I think that we were just watching how much cash is coming in as free cash flow and what is the best way of allocating that cash to ensure that we kept up with essentially that distribution commitment. Share buybacks was an obvious opportunity for us in the second quarter. Yes. yes I think what was happening was basically strong cash generation and the recognition that there was, especially in the second quarter, an opportunity of buying back those shares at a really good price. i think what was happening was basically strong cash generation and the recognition that there was especially in the second quarter an opportunity of buying back those shares at a really good price I did mention that our average buyback price in the quarter was $1.78. i did mention that our average buyback price in the quarter was $1.78 I think that was for the first semester. i think that was for the first semester I think that we were just watching how much cash is coming in as free cash flow and what is the best way of allocating that cash to ensure that we kept up with essentially that distribution commitment. i think that we were just watching how much cash is coming in as free cash flow and what is the best way of allocating that cash to ensure that we kept up with essentially that distribution commitment Share buybacks was an obvious opportunity for us in the second quarter. share buybacks was an obvious opportunity for us in the second quarter

Speaker 4: Right. Okay. Maybe you can touch on that sort of strategy in terms of how you're prioritizing shareholder returns. I think it did cut out a little bit, but it sounds like when the share price is higher, you'll probably scale back the buybacks, but it's just to operate as high as performance dividends. Right. right Okay. okay Maybe you can touch on that sort of strategy in terms of how you're prioritizing shareholder returns. maybe you can touch on that sort of strategy in terms of how you're prioritizing shareholder returns I think it did cut out a little bit, but it sounds like when the share price is higher, you'll probably scale back the buybacks, but it's just to operate as high as performance dividends. i think it did cut out a little bit but it sounds like when the share price is higher you'll probably scale back the buybacks but it's just to operate as high as performance dividends

Speaker 2: It's basically a more holistic answer. I wouldn't like to just provide a very linear response saying if copper price is here, we do this or we do that, or if the share price is here, we take this route. I think that the answer is that our CRS has to be flexible. We have no absolute preference other than ensuring that we live up to our word of return and gas tax to shareholders. We use the tools strategically. You know quite well that for us, the foundation of the CRS is the quarterly dividend. We want to provide that very stable, very predictable return to shareholders. Under this copper price condition, where that $0.03 Canadian dividend is absolutely safe, the question becomes, what do we do next? Performance dividends or the share buybacks? The performance dividends are a great tool. It's basically a more holistic answer. it's basically a more holistic answer I wouldn't like to just provide a very linear response saying if copper price is here, we do this or we do that, or if the share price is here, we take this route. i wouldn't like to just provide a very linear response saying if copper price is here we do this or we do that or if the share price is here we take this route I think that the answer is that our CRS has to be flexible. i think that the answer is that our crs has to be flexible We have no absolute preference other than ensuring that we live up to our word of return and gas tax to shareholders. we have no absolute preference other than ensuring that we live up to our word of return and gas tax to shareholders We use the tools strategically. we use the tools strategically You know quite well that for us, the foundation of the CRS is the quarterly dividend. you know quite well that for us the foundation of the crs is the quarterly dividend We want to provide that very stable, very predictable return to shareholders. we want to provide that very stable very predictable return to shareholders Under this copper price condition, where that $0.03 Canadian dividend is absolutely safe, the question becomes, what do we do next? under this copper price condition where that $0.03 canadian dividend is absolutely safe the question becomes what do we do next Performance dividends or the share buybacks? performance dividends or the share buybacks The performance dividends are a great tool. the performance dividends are a great tool For example, when you have a spike in copper prices, we saw that happening in the second quarter of 2024. The obvious answer was, we've realized the benefits of this strong settlement in the quarters for our prior quarter sales, and we have to return this. The best way of doing it quickly is through the performance dividend. Share buybacks, you know, if we see a period of share price weakness, we act on that. If we want to reduce dilution, we act on that. We have stated at the very minimum, we want to end each year with no dilution. In fact, we've done more than that this year. Certainly, you saw the activity that we had in the second quarter. Literally, what was happening is we had the free cash flow. For example, when you have a spike in copper prices, we saw that happening in the second quarter of 2024. for example when you have a spike in copper prices we saw that happening in the second quarter of 2024 The obvious answer was, we've realized the benefits of this strong settlement in the quarters for our prior quarter sales, and we have to return this. the obvious answer was we've realized the benefits of this strong settlement in the quarters for our prior quarter sales and we have to return this The best way of doing it quickly is through the performance dividend. the best way of doing it quickly is through the performance dividend Share buybacks, you know, if we see a period of share price weakness, we act on that. share buybacks you know if we see a period of share price weakness we act on that If we want to reduce dilution, we act on that. if we want to reduce dilution we act on that We have stated at the very minimum, we want to end each year with no dilution. we have stated at the very minimum we want to end each year with no dilution In fact, we've done more than that this year. in fact we've done more than that this year Certainly, you saw the activity that we had in the second quarter. certainly you saw the activity that we had in the second quarter Literally, what was happening is we had the free cash flow. literally what was happening is we had the free cash flow We were looking at our share price movement, and we thought this is a great opportunity to go out in the market and buy back those shares at a bargain price. We did that. We were looking at our share price movement, and we thought this is a great opportunity to go out in the market and buy back those shares at a bargain price. we were looking at our share price movement and we thought this is a great opportunity to go out in the market and buy back those shares at a bargain price We did that. we did that

Speaker 4: Understood. Yeah, that makes sense. I guess just the last question would be, obviously, you've been paying down the debt quite aggressively over the last year and a half. What are the plans to do with the excess cash flow once this debt is paid off at the end of the year? Is there a chance that the fixed dividend portion could increase? Understood. understood Yeah, that makes sense. yeah that makes sense I guess just the last question would be, obviously, you've been paying down the debt quite aggressively over the last year and a half. i guess just the last question would be obviously you've been paying down the debt quite aggressively over the last year and a half What are the plans to do with the excess cash flow once this debt is paid off at the end of the year? what are the plans to do with the excess cash flow once this debt is paid off at the end of the year Is there a chance that the fixed dividend portion could increase? is there a chance that the fixed dividend portion could increase

Speaker 2: That is certainly a possibility. Depending on where share price performance is, additional activity on the buyback is also a possibility, or a heftier or more frequent performance dividend. It's A, B, or C. That's the easy answer, because basically, there's going to be a substantial catalyst in terms of additional free cash flow to equity. I think Carmen mentioned that. On average, if you look at our scheduled debt repayments for the debt worth $7 million, add to that $2 million of finance costs. That's $9 million that are becoming available as of 2026. That is certainly a possibility. that is certainly a possibility Depending on where share price performance is, additional activity on the buyback is also a possibility, or a heftier or more frequent performance dividend. depending on where share price performance is additional activity on the buyback is also a possibility or a heftier or more frequent performance dividend It's A, B, or C. it's a b or c That's the easy answer, because basically, there's going to be a substantial catalyst in terms of additional free cash flow to equity. that's the easy answer because basically there's going to be a substantial catalyst in terms of additional free cash flow to equity I think Carmen mentioned that. i think carmen mentioned that On average, if you look at our scheduled debt repayments for the debt worth $7 million, add to that $2 million of finance costs. on average if you look at our scheduled debt repayments for the debt worth $7 million add to that $2 million of finance costs That's $9 million that are becoming available as of 2026. that's $9 million that are becoming available as of 2026

Speaker 4: Understood. I guess it's good to keep that flexibility and see how things go. That's all I had for today. Again, congrats and thanks. Understood. understood I guess it's good to keep that flexibility and see how things go. i guess it's good to keep that flexibility and see how things go That's all I had for today. that's all i had for today Again, congrats and thanks. again congrats and thanks

Speaker 2: Thanks, Ben. Thanks, Ben. thanks ben

Speaker 7: Thank you. The next question comes from John Polcari at Mutual of America. Please go ahead. Thank you. thank you The next question comes from John Polcari at Mutual of America . the next question comes from john polcari at mutual of america Please go ahead. please go ahead

Speaker 6: Thank you. Another well-managed quarter. Thank you. Two questions, and I will not repeat or bother you with the question regarding dividends or increases. In addition to eliminating dilutions, is there a minimum number of shares that you think might be retained as far as reducing the flow to, was it aggressive repurchase of shares in the second quarter? That obviously will vary from quarter to quarter. Again, is there a minimum amount to, in order to maintain liquidity that you think would be appropriate, that you would not want to drop below in terms of the number of shares outstanding, or? Thank you. thank you Another well-managed quarter. another well-managed quarter Thank you. thank you Two questions, and I will not repeat or bother you with the question regarding dividends or increases. two questions and i will not repeat or bother you with the question regarding dividends or increases In addition to eliminating dilutions, is there a minimum number of shares that you think might be retained as far as reducing the flow to, was it aggressive repurchase of shares in the second quarter? in addition to eliminating dilutions is there a minimum number of shares that you think might be retained as far as reducing the flow to was it aggressive repurchase of shares in the second quarter That obviously will vary from quarter to quarter. that obviously will vary from quarter to quarter Again, is there a minimum amount to, in order to maintain liquidity that you think would be appropriate, that you would not want to drop below in terms of the number of shares outstanding, or? again is there a minimum amount to in order to maintain liquidity that you think would be appropriate that you would not want to drop below in terms of the number of shares outstanding or

Speaker 2: No. The commitment is basically driven towards dilution, and I don't think that we have reached a situation where we think that buying back any more shares or buying back a big block of shares would represent a detrimental decision for the company to take on. No. no The commitment is basically driven towards dilution, and I don't think that we have reached a situation where we think that buying back any more shares or buying back a big block of shares would represent a detrimental decision for the company to take on. the commitment is basically driven towards dilution and i don't think that we have reached a situation where we think that buying back any more shares or buying back a big block of shares would represent a detrimental decision for the company to take on

Speaker 6: As we speak, if there was an appropriate decision and there was adequate cash. As we speak, if there was an appropriate decision and there was adequate cash. as we speak if there was an appropriate decision and there was adequate cash

Speaker 2: As we speak, share buybacks are absolutely on the table, as are performance dividends and possibly in 2026 an increase to the quarterly dividend. The three tools remain fully valid and executable depending on circumstances. As we speak, share buybacks are absolutely on the table, as are performance dividends and possibly in 2026 an increase to the quarterly dividend. as we speak share buybacks are absolutely on the table as are performance dividends and possibly in 2026 an increase to the quarterly dividend The three tools remain fully valid and executable depending on circumstances. the three tools remain fully valid and executable depending on circumstances

Speaker 6: Thank you. The other question I had was just, if you could take just a moment out to refresh me on, if you will, retain the custody for copper delivery. After you've extracted the copper from the tailings, it goes to the port, and at what point do you turn over, say, title to the, to the copper? At what point do you receive? Thank you. thank you The other question I had was just, if you could take just a moment out to refresh me on, if you will, retain the custody for copper delivery. the other question i had was just if you could take just a moment out to refresh me on if you will retain the custody for copper delivery After you've extracted the copper from the tailings, it goes to the port, and at what point do you turn over, say, title to the, to the copper? after you've extracted the copper from the tailings it goes to the port and at what point do you turn over say title to the to the copper At what point do you receive? at what point do you receive

Speaker 2: It's easier. It is easier than that in terms of when is title transferred. Our copper concentrate, it's a copper concentrate. It's not a cathode. It's not a finished product. It's a dark powder called copper concentrate. It is shipped out on a daily basis. As soon as it's put on the El Teniente trucks, it passes title. We bill for those deliveries on a weekly basis. We get a provisional price on a weekly basis, and we settle that final provisional price sooner or later when the known price of the third month following delivery takes place. It's easier. it's easier It is easier than that in terms of when is title transferred. it is easier than that in terms of when is title transferred Our copper concentrate, it's a copper concentrate. our copper concentrate it's a copper concentrate It's not a cathode. it's not a cathode It's not a finished product. it's not a finished product It's a dark powder called copper concentrate. it's a dark powder called copper concentrate It is shipped out on a daily basis. it is shipped out on a daily basis As soon as it's put on the El Teniente trucks, it passes title. as soon as it's put on the el teniente trucks it passes title We bill for those deliveries on a weekly basis. we bill for those deliveries on a weekly basis We get a provisional price on a weekly basis, and we settle that final provisional price sooner or later when the known price of the third month following delivery takes place. we get a provisional price on a weekly basis and we settle that final provisional price sooner or later when the known price of the third month following delivery takes place

Speaker 6: I understand. That provisional price. I understand. i understand That provisional price. that provisional price

Speaker 2: Yes, that provisional price is, it's always, yeah, go ahead. Yes, that provisional price is, it's always, yeah, go ahead. yes that provisional price is it's always yeah go ahead

Speaker 6: Always based on the LME? Always based on the LME? always based on the lme

Speaker 2: It's always LME. It's always LME. We actually look at the provisional weekly price, which is based on the provisional price that is used until things are settled, sooner or later. Always LME. It's always LME. it's always lme It's always LME. it's always lme We actually look at the provisional weekly price, which is based on the provisional price that is used until things are settled, sooner or later. we actually look at the provisional weekly price which is based on the provisional price that is used until things are settled sooner or later Always LME. always lme

Speaker 6: Great. All right. That's all I had. Thank you again for managing us through another volatile quarter. Great. great All right. all right That's all I had. that's all i had Thank you again for managing us through another volatile quarter. thank you again for managing us through another volatile quarter

Speaker 2: Thank you. Thank you. thank you

Speaker 7: Thank you. The next question comes from William Gower, an investor. Please go ahead. Thank you. thank you The next question comes from William Gower, an investor. the next question comes from william gower an investor Please go ahead. please go ahead All right. I just want to echo the congratulations to everybody on the call, but also to the teams in Chile doing the work. This is incredible operational performance and managerial performance. I just have a quick follow-up on the settlement. It sounds like the fair value adjustment is made three months later. I mean, we're marking the market, but when is the cash actually hitting our account? Along the same lines, are we waiting to make decisions on cash flow such as buybacks or dividends until we know what the provisional adjustment is? That way, essentially, there's going to be a quarterly delay in the effect of the cash flows and then the decisions we make based on the cash flows? All right. all right I just want to echo the congratulations to everybody on the call, but also to the teams in Chile doing the work. i just want to echo the congratulations to everybody on the call but also to the teams in chile doing the work This is incredible operational performance and managerial performance. this is incredible operational performance and managerial performance I just have a quick follow-up on the settlement. i just have a quick follow-up on the settlement It sounds like the fair value adjustment is made three months later. it sounds like the fair value adjustment is made three months later I mean, we're marking the market, but when is the cash actually hitting our account? i mean we're marking the market but when is the cash actually hitting our account Along the same lines, are we waiting to make decisions on cash flow such as buybacks or dividends until we know what the provisional adjustment is? along the same lines are we waiting to make decisions on cash flow such as buybacks or dividends until we know what the provisional adjustment is That way, essentially, there's going to be a quarterly delay in the effect of the cash flows and then the decisions we make based on the cash flows? that way essentially there's going to be a quarterly delay in the effect of the cash flows and then the decisions we make based on the cash flows

Speaker 2: Thank you for recognizing the team in Chile. They are the real people that make all of this happen. We just coordinate them. There are two parts to the question regarding the marked to market, but I think that we marked to market every month. Carmen prepares consolidated financial statements on a monthly basis, not on a quarterly basis. We take the LME spot price and the LME M plus 3 price, and we create a progression for the M plus 1, M plus 2 based on those two data points. We do the marked to market on a monthly basis. I think the most important part of your question is what happens with the cash, and what happens with the decision-making around that cash. The payment terms from Codelco to Minera Valle Central can be summarized in three steps. Thank you for recognizing the team in Chile. thank you for recognizing the team in chile They are the real people that make all of this happen. they are the real people that make all of this happen We just coordinate them. we just coordinate them There are two parts to the question regarding the marked to market, but I think that we marked to market every month. there are two parts to the question regarding the marked to market but i think that we marked to market every month Carmen prepares consolidated financial statements on a monthly basis, not on a quarterly basis. carmen prepares consolidated financial statements on a monthly basis not on a quarterly basis We take the LME spot price and the LME M plus 3 price, and we create a progression for the M plus 1, M plus 2 based on those two data points. we take the lme spot price and the lme m plus 3 price and we create a progression for the m plus 1 m plus 2 based on those two data points We do the marked to market on a monthly basis. we do the marked to market on a monthly basis I think the most important part of your question is what happens with the cash, and what happens with the decision-making around that cash. i think the most important part of your question is what happens with the cash and what happens with the decision-making around that cash The payment terms from Codelco to Minera Valle Central can be summarized in three steps. the payment terms from codelco to minera valle central can be summarized in three steps We issue weekly invoices each Monday for 75% of the prior week's copper production, which is provisionally priced as I was speaking in my prior question at the week's average LME price. Once the month is completed, we issue one monthly invoice to true the amount up to 90% of the month's production, which is provisionally priced at the monthly average price less the weekly interim payment. Basically, at each month end, we are caught up with 90% of the deliveries that were done during the prior month, priced at the most recent LME price for 90% of those deliveries. When the final terms are known three months later, we issue one final either credit note or debit note at the final price, which is the M plus 3 price. Cash flow is coming in on a weekly basis of 75% of our production rate. We issue weekly invoices each Monday for 75% of the prior week's copper production, which is provisionally priced as I was speaking in my prior question at the week's average LME price. we issue weekly invoices each monday for 75% of the prior week's copper production which is provisionally priced as i was speaking in my prior question at the week's average lme price Once the month is completed, we issue one monthly invoice to true the amount up to 90% of the month's production, which is provisionally priced at the monthly average price less the weekly interim payment. once the month is completed we issue one monthly invoice to true the amount up to 90% of the month's production which is provisionally priced at the monthly average price less the weekly interim payment Basically, at each month end, we are caught up with 90% of the deliveries that were done during the prior month, priced at the most recent LME price for 90% of those deliveries. basically at each month end we are caught up with 90% of the deliveries that were done during the prior month priced at the most recent lme price for 90% of those deliveries When the final terms are known three months later, we issue one final either credit note or debit note at the final price, which is the M plus 3 price. when the final terms are known three months later we issue one final either credit note or debit note at the final price which is the m plus 3 price Cash flow is coming in on a weekly basis of 75% of our production rate. cash flow is coming in on a weekly basis of 75% of our production rate It is trued up to 90% of our production rate by a week after the end of the month. The final settlement, positive or negative, takes place three weeks before. There is always a continuum of cash flow coming in on a weekly basis. We update all of this information in our model. We basically are working with real-time data that allows us to know how much, for example, can be allocated to share buybacks on a weekly basis when we're active on the buyback program. Or, when copper prices are close or down, slower prices, how safe is our CapEx payment or weekly payment as quarterly dividends? We are monitoring all of that information essentially, I would say, daily. We have that. We just plug in the copper price that we think is going to apply for each week, and we have all the data right in front of us. It is trued up to 90% of our production rate by a week after the end of the month. it is trued up to 90% of our production rate by a week after the end of the month The final settlement, positive or negative, takes place three weeks before. the final settlement positive or negative takes place three weeks before There is always a continuum of cash flow coming in on a weekly basis. there is always a continuum of cash flow coming in on a weekly basis We update all of this information in our model. we update all of this information in our model We basically are working with real-time data that allows us to know how much, for example, can be allocated to share buybacks on a weekly basis when we're active on the buyback program. we basically are working with real-time data that allows us to know how much for example can be allocated to share buybacks on a weekly basis when we're active on the buyback program Or, when copper prices are close or down, slower prices, how safe is our CapEx payment or weekly payment as quarterly dividends? or when copper prices are close or down slower prices how safe is our capex payment or weekly payment as quarterly dividends We are monitoring all of that information essentially, I would say, daily. we are monitoring all of that information essentially i would say daily We have that. we have that We just plug in the copper price that we think is going to apply for each week, and we have all the data right in front of us. we just plug in the copper price that we think is going to apply for each week and we have all the data right in front of us Perfect. Thank you so much. I have another two follow-ups, not to that specific area, but with regards to cost guidance. It's, you know, it's around $2 per pound. Obviously, it's been beaten in Q1 and Q2, and really. Perfect. perfect Thank you so much. thank you so much I have another two follow-ups, not to that specific area, but with regards to cost guidance. i have another two follow-ups not to that specific area but with regards to cost guidance It's, you know, it's around $2 per pound. it's you know it's around $2 per pound Obviously, it's been beaten in Q1 and Q2, and really. obviously it's been beaten in q1 and q2 and really In Q2. In Q2. in q2 In Q2, okay, largely because of smelting and refining charges being lower. Is that something? I know you've maintained the cost. Go ahead. In Q2, okay, largely because of smelting and refining charges being lower. in q2 okay largely because of smelting and refining charges being lower Is that something? is that something I know you've maintained the cost. i know you've maintained the cost Go ahead. go ahead No. Yeah, we guide it. If you're interested in the guidance, I would say the best source of information and probably the news release you should keep close to you year-round is our guidance news release, which is usually our first news release of the year. We provide there not only what the cash flow guidance is going to be, but also to search for experiences in terms of what happens to those copper prices moving up or down, moly prices moving up or down, and even forward sales. When we provided our guidance for the year in terms of cash cost, we knew already what the spot prices, oh, sorry, what the TCRCs, the treatment and refining charges, were going to be for the year. Any variations that you've seen from guidance to actual are not driven by lower smelt and refinery charges. No. no Yeah, we guide it. yeah we guide it If you're interested in the guidance, I would say the best source of information and probably the news release you should keep close to you year-round is our guidance news release, which is usually our first news release of the year. if you're interested in the guidance i would say the best source of information and probably the news release you should keep close to you year-round is our guidance news release which is usually our first news release of the year We provide there not only what the cash flow guidance is going to be, but also to search for experiences in terms of what happens to those copper prices moving up or down, moly prices moving up or down, and even forward sales. we provide there not only what the cash flow guidance is going to be but also to search for experiences in terms of what happens to those copper prices moving up or down moly prices moving up or down and even forward sales When we provided our guidance for the year in terms of cash cost, we knew already what the spot prices, oh, sorry, what the TCRCs, the treatment and refining charges, were going to be for the year. when we provided our guidance for the year in terms of cash cost we knew already what the spot prices oh sorry what the tcrcs the treatment and refining charges were going to be for the year Any variations that you've seen from guidance to actual are not driven by lower smelt and refinery charges. any variations that you've seen from guidance to actual are not driven by lower smelt and refinery charges I guess I'm probably just ignorant and don't understand it, and maybe you can better explain it. Are these decreases at least the lower numbers than the cash cost guidance expected from smelting and refining? I guess what I'm getting at is, is this something that's going to be long-term, or is this kind of one-off? I guess I'm probably just ignorant and don't understand it, and maybe you can better explain it. i guess i'm probably just ignorant and don't understand it and maybe you can better explain it Are these decreases at least the lower numbers than the cash cost guidance expected from smelting and refining? are these decreases at least the lower numbers than the cash cost guidance expected from smelting and refining I guess what I'm getting at is, is this something that's going to be long-term, or is this kind of one-off? i guess what i'm getting at is is this something that's going to be long-term or is this kind of one-off The variances that we're seeing right now are coming in from higher moly productions. They're coming in from a better, or from a lower, from at least a strong Chilean peso compared to U.S. dollar. Those are the significant variances that are coming from. They're not coming by lower smelter and refinery charges. In our case, as is also the case for most copper concentrate producers, we work not on the basis of spot treatment and refining charges, but on what's called an annual benchmark treatment and refining charge that is known at the end of the prior year. You work with those figures and with those charges for the rest of the year, irrespective of what happens with the spot TCRCs. There are long-term or annually set rates that don't change through the year. The variances that we're seeing right now are coming in from higher moly productions. the variances that we're seeing right now are coming in from higher moly productions They're coming in from a better, or from a lower, from at least a strong Chilean peso compared to U.S. dollar. they're coming in from a better or from a lower from at least a strong chilean peso compared to u.s dollar Those are the significant variances that are coming from. those are the significant variances that are coming from They're not coming by lower smelter and refinery charges. they're not coming by lower smelter and refinery charges In our case, as is also the case for most copper concentrate producers, we work not on the basis of spot treatment and refining charges, but on what's called an annual benchmark treatment and refining charge that is known at the end of the prior year. in our case as is also the case for most copper concentrate producers we work not on the basis of spot treatment and refining charges but on what's called an annual benchmark treatment and refining charge that is known at the end of the prior year You work with those figures and with those charges for the rest of the year, irrespective of what happens with the spot TCRCs. you work with those figures and with those charges for the rest of the year irrespective of what happens with the spot tcrcs There are long-term or annually set rates that don't change through the year. there are long-term or annually set rates that don't change through the year Okay. Thank you. The last subject, and I'll preempt this question by thanking you for doing the interviews that you do, the kind of long form, hour, hour and a half long videos. Those are incredibly helpful and answer a lot of my questions. Part of that, when you're questioned about the overall DEP contracts, both for historic and fresh tailings, you know, obviously, you provide guidance in the management discussion and analysis saying, basically, there's very little chance of DEP canceling our contract in the short term. With regards to the current extension contract deadlines, obviously, it's been renewed and renewed. When can you provide us any guidance on when we might hear about talks of an additional extension or just kind of when we could start thinking about hearing that or, I don't know, some sort of guidance on that? Okay. okay Thank you. thank you The last subject, and I'll preempt this question by thanking you for doing the interviews that you do, the kind of long form, hour, hour and a half long videos. the last subject and i'll preempt this question by thanking you for doing the interviews that you do the kind of long form hour hour and a half long videos Those are incredibly helpful and answer a lot of my questions. those are incredibly helpful and answer a lot of my questions Part of that, when you're questioned about the overall DEP contracts, both for historic and fresh tailings, you know, obviously, you provide guidance in the management discussion and analysis saying, basically, there's very little chance of DEP canceling our contract in the short term. part of that when you're questioned about the overall dep contracts both for historic and fresh tailings you know obviously you provide guidance in the management discussion and analysis saying basically there's very little chance of dep canceling our contract in the short term With regards to the current extension contract deadlines, obviously, it's been renewed and renewed. with regards to the current extension contract deadlines obviously it's been renewed and renewed When can you provide us any guidance on when we might hear about talks of an additional extension or just kind of when we could start thinking about hearing that or, I don't know, some sort of guidance on that? when can you provide us any guidance on when we might hear about talks of an additional extension or just kind of when we could start thinking about hearing that or i don't know some sort of guidance on that We are 12 years away from the contract expiring. Can I share you one thing? If I'm Codelco, in 12 years, you will not hear from it on year 11. You probably will hear from it around year 6, 6 years before. This is critical to us. It is a genesis of what the company is. This is not a discussion or a negotiation that we're going to leave to the end of, or closer to 2037. We're still 12 years away from that. We are 12 years away from the contract expiring. we are 12 years away from the contract expiring Can I share you one thing? can i share you one thing If I'm Codelco, in 12 years, you will not hear from it on year 11. if i'm codelco in 12 years you will not hear from it on year 11 You probably will hear from it around year 6, 6 years before. you probably will hear from it around year 6 6 years before This is critical to us. this is critical to us It is a genesis of what the company is. it is a genesis of what the company is This is not a discussion or a negotiation that we're going to leave to the end of, or closer to 2037. this is not a discussion or a negotiation that we're going to leave to the end of or closer to 2037 We're still 12 years away from that. we're still 12 years away from that Yeah, I know. It's very important. I think it's very important. That's why I figured I'd ask. I appreciate it, and your confidence is one of the main reasons I'm an investor. You are one of the main reasons I'm an investor in Amerigo Resources. I appreciate you and the entire team there. Thank you for all of the work that you do. Yeah, I know. yeah i know It's very important. it's very important I think it's very important. i think it's very important That's why I figured I'd ask. that's why i figured i'd ask I appreciate it, and your confidence is one of the main reasons I'm an investor. i appreciate it and your confidence is one of the main reasons i'm an investor You are one of the main reasons I'm an investor in Amerigo Resources. you are one of the main reasons i'm an investor in amerigo resources I appreciate you and the entire team there. i appreciate you and the entire team there Thank you for all of the work that you do. thank you for all of the work that you do You're very kind. You're very kind. you're very kind

Speaker 7: Thank you. If we have no further questions, I will turn the call back over to Aurora Davidson for closing comments. Thank you. thank you If we have no further questions, I will turn the call back over to Aurora Davidson for closing comments. if we have no further questions i will turn the call back over to aurora davidson for closing comments

Speaker 2: Thank you very much. Again, my apologies for any communication disruptions through the call. We try to avoid them as much as we can. Thank you for attending today's call, and thank you to Carmen and Graham for being on the call as well. The recording and the script will be available on Amerigo's website in the next few days. We will hold our next earnings call on Thursday, October 30, to report our third quarter results. Please visit our website regularly for updates, and feel free to contact us with any questions at your convenience. Thank you for your continued interest in Amerigo. Thank you very much. thank you very much Again, my apologies for any communication disruptions through the call. again my apologies for any communication disruptions through the call We try to avoid them as much as we can. we try to avoid them as much as we can Thank you for attending today's call, and thank you to Carmen and Graham for being on the call as well. thank you for attending today's call and thank you to carmen and graham for being on the call as well The recording and the script will be available on Amerigo's website in the next few days. the recording and the script will be available on amerigo's website in the next few days We will hold our next earnings call on Thursday, October 30, to report our third quarter results. we will hold our next earnings call on thursday october 30 to report our third quarter results Please visit our website regularly for updates, and feel free to contact us with any questions at your convenience. please visit our website regularly for updates and feel free to contact us with any questions at your convenience Thank you for your continued interest in Amerigo. thank you for your continued interest in amerigo

Speaker 7: Ladies and gentlemen, this concludes our conference call for today. We thank you for participating, and we ask that you please disconnect now. Ladies and gentlemen, this concludes our conference call for today. ladies and gentlemen this concludes our conference call for today We thank you for participating, and we ask that you please disconnect now. we thank you for participating and we ask that you please disconnect now