ENDEAVOUR SILVER CORP — Call Transcript 2026

Standing by. This is the conference operator. Welcome to the Endeavour Silver fourth quarter and year-end 2025 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press Star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator pressing Star then 0. I would now like to turn the conference over to Allison Pettit, Vice President, Investor Relations. Please go ahead. Thank you, operator, and good morning, everyone. Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com. On today's call, we have Dan Dickson, Endeavour Silver's CEO, Elizabeth Soralis, our CFO, and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open the call for questions. Now over to Dan. Thank you, Allison, and welcome everyone. Before reviewing our 2025 results, I'd like to provide a brief update on Terronera. Operations were temporarily impacted by recent security events in Mexico and Jalisco's Code Red mandate, which required civilians to shelter in place. To comply with the mandate, the uncertainty surrounding the event, and to ensure the safety of our people, we paused Terronera's operations Sunday evening. Operations resumed Wednesday, February 25th, once supply routes were confirmed to be secure. We will continue to monitor the developments closely, and the safety of our employees and contractors remain our top priority. With that, I'd like to briefly touch on the current silver and gold market. Over the past year, we've seen exceptional gains in renewed investor interest in precious metals, driven by inflationary pressures, global economic uncertainty, and ongoing political tensions. Silver and gold continue to be viewed as safe haven assets, with silver also benefiting from rising industrial demand, especially in the green energy and technology spaces. This momentum has continued into 2026 as gold trades well above $5,000 and silver is elevated above $90, reflecting ongoing confidence and reinforcing the importance of our strategic initiatives and our commitment to delivering value for our shareholders. We are extremely well-positioned to benefit from the current silver prices and believe there is substantial runway remaining in this cycle. Moving over to the specifics of the company, 2025 was a transformational year for Endeavour Silver. We took a major step forward with the acquisition of Kolpa in May, Terronera achieving commercial production in October, and agreed to the sale of the Bolanitos Mine, which closed in January. In December, we raised $350 million through a convertible debt offering, strengthening our balance sheet and positioning ourselves to advance the Pitarrilla development asset. These milestones lay a solid foundation for performance and sustained growth as we look ahead to the future and position ourselves as a stronger company within the industry. In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, including base metal production from Kolpa, making a 48% increase compared to 2024. In Q4, Endeavour Silver produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces. This represents a 146% increase compared to Q4 of 2025 due to the addition of Kolpa, Terronera, and the higher grades at Bolanitos. Excluding Coba and Terronera, this was a 27% increase compared to the same period last year. In 2025, the company reported record revenue of $468 million, up 115% compared to 2024, with cost of sales of $385 million, mine operating earnings of $83 million, and mine operating cash flow before taxes of $156 million. Mine operating cash flow before working capital changes rose by 116%, while cash costs increased to $19 per ounce of payable silver, primarily driven by the substantial changes in our production profile. In Q4, Endeavour recognized adjusted net earnings of $4.8 million or an adjusted earnings of $0.02 per share. Due to realized losses from derivative contracts and higher financing costs in relation to the early repayment of the debt facility. Direct operating costs per ton increased by 8% this year, primarily driven by elevated costs at Terronera during its initial quarter of production. Looking ahead, we anticipate a substantial reduction in these costs as we transition from diesel to liquefied natural gas in Q2 of 2026, complete the demobilization of our construction team, benefit from workforce and logistics optimization plans implemented in January, and maintain a throughput at 2,000 tons per day through 2026. Kolpa will also see an improved cost efficiency as its plant expands 2,500 per day tons per day here in Q1. For clarity, our direct operating costs per ton include direct input costs associated with mining, milling, and site level G&A. Our definition of direct costs per ton includes royalties, mining duties, and the purchase of third-party material. Changes in the metal price have a meaningful impact on our direct cost per ton. For example, for every dollar increase in silver, our cost per ton rise by about $0.90 at Terronera, $0.50 at Kolpa, and $3.80 per ton at Guanaceví, mainly due to the higher royalties, duties, and third-party ore purchases, elevated corporate G&A, and the addition of Terronera. All-in sustaining costs net of byproduct credits were elevated this quarter with higher royalties, duties, third-party ore purchases, elevated corporate G&A, and the addition of Terronera. Terronera incurred higher costs due to higher sustaining capital expenses during the first quarter of operations. Terronera's All-in sustaining cost includes capital expenditures of $16.3 million for the quarter, which worked out to approximately $48 All-in sustaining cost per ounce. This includes one-time investments related to new mining operations. These costs are expected to decrease as we move through 2026. The elevated corporate G&A was impacted by the divestiture of Bolanitos, the appreciation of deferred share units, and the integration of all our new operations. As of December 31st, 2025, the company's cash position stood at $215 million, providing us with the financial strength and flexibility to advance our strategic initiatives. This robust foundation allows us to remain nimble and responsive to new opportunities while staying focused on driving progress at Pitarrilla, where we continue to invest in exploration, technical studies, and the economic evaluation. As we move through 2026, our attention remains focused on several operational investment priorities across our main operations and projects, each serving as a catalyst for our continued success and growth in 2026. At Terronera, our primary focus is disciplined execution as we transition into higher grade zones in the second half of the year. We are seeing gradual improvements towards designed operating parameters, including nameplate throughput, recoveries, and mine output. Grades are aligning with plan. Operations are beginning to establish a consistent rhythm rather than the volatility of a typical ramp-up. As we eliminate ramp-up or start-up costs, we expect direct cost per ton to improve through the year. Secondly, at Kolpa, we are actively advancing our expansion initiative, increasing capacity from 2,000 tons per day to 2,500. We anticipate achieving this milestone in the coming weeks, which will enhance our throughput and support our growth objective. Additionally, we remain focused on delivering a resource estimate later this year. At Pitarrilla, the company's next major development project and one of the world's largest undeveloped silver deposits, our commitment remains very strong, with a planned $68 million investment in 2026. This includes the completion of an NI 43-101 feasibility study targeted for completion in Q3 2026, along with early work such as commencement of the construction camp, continued ramp advancement through the manto, and procurement of long lead equipment to support the basic and detailed engineering. We are positioning the project to have a well-informed construction decision in early 2027, supporting our strategic strategy of significant organic growth. 2025 marked a defining chapter in our story. As we continue on this exciting path, I want to extend our gratitude to our valued shareholders and stakeholders for your confidence and partnership. We remain committed to creating lasting value, driving operational excellence, and building a premier senior silver company. Thank you for your continued support and engagement. With that, I'm happy to open this to questions. Operator, please proceed to our Q&A session. Thank you. To join the question queue, you may press Star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star then two. The first question comes from Wayne Lam with TD Securities. Please go ahead. Yeah, thanks. Morning, guys, or morning, afternoon over here. I'm just wondering, just on the updates operational at Terronera, can you discuss the mill availability and what happened with the electrical interruptions? If I recall, you guys also had an electrical issue in late September, which kind of resulted in the delay to commercial production. Just wondering exactly what's going on there. Have you seen an improvement on those issues? Have those been resolved in the first two months of this year? Yeah. Thanks for the question, Wayne. I mean, the quick answer is yes, we have seen a lot of improvement in January and February. We've done very well from a throughput standpoint. As you recall, back in September, we had resistors that had to replace early October, and it took six days, seven days for those to come in as they were one-time items. We had a lot of electrical disruptions just because we're on diesel gen sets. We were at max power, and we had to make some adjustments in Q4 to that. We were getting lots of starts and stops. Losing maybe one hour or two hours on various days. Starting and stopping impacts recoveries, obviously impacts throughput. We've seen that kind of stabilize late December obviously through January and February. The most important part to those temporary diesel gen sets is we have received our permits to operate our LNG plant. We are allowed to vaporize our liquefied natural gas into natural gas and ultimately electricity. We are completing that connection point here in Q1. The provider of the liquefied natural gas has obtained their permit to transport, and they're just waiting on a storage permit on site, that we're gonna look at here or we expect to receive over the next couple weeks. Our expectation is that we'll be on our LNG plant in Q2. It does a significant thing for our stability of electrical continuity, but also from a cost standpoint. Going from diesel gen sets into the LNG plant takes us from $0.33 per MWh to $0.17, almost $8 a ton at this point. We're excited to get on that for a number of reasons. Obviously, reliability and cost being the main two. Okay, great. Thanks. Maybe just on the grade profile at Terronera, you guys had previously guided the 122 gm silver and 2.5 gold through the first 6 months of operation. The guidance for this year implies that you'll average 120 gm through the entirety of 2026. Yep. I know you guys had talked about, you know, some of mining of the lower grade stockworks driving that, but just wondering if you might have any guidance on grades in terms of a split in H1 versus the prior 2022, and where we should think about that with the higher grades you're projecting into H2. Then just are the lower grades entirely being driven by that lowering of the cutoff, or is there some attribution as well to greater dilution or lower reconciliation versus the block model? I think the first couple questions, block model reconciliation has been relatively strong, better as we've moved forward and we've got deeper into the mine plan. We do have lower silver grades and ultimately gold grades because of some of that stockwork. Right now, that stockwork isn't a significant amount. As you know, in the back half of the year, we get into the main chute of Terronera, and that's the goal. That's where our highest grade points are, and that's where our biggest splits are. As far as the breakdown between H1 and H2, I don't have that rate in front of me, but it is a gradual increase, so Q1-Q2, Q3-Q4. Each quarter gets better, as we bring more and more of that chute in. For those that are listening, we made the decision about almost one year ago now, maybe nine months ago, that we would go into a lower grade part of the ore body as we start with initial production, obviously, because we didn't wanna end up having ounces of silver and gold into our tailings, dam, ultimately, as we go through kind of your irregular startup issues and building up our recovery. This was by design, Wayne. Again, it's lining up relatively well to plan. We're slightly lower because we are taking that stockwork. It's very difficult to speak to that stockwork and the impact overall. As we go through the year, we'll bring more and more into the plan and more of the high grade stuff and hopefully go back to that stockwork later on. Okay. maybe just as a follow-up to that, the mine plan in the early years of operation is, you know, in the, in the realm of, you know, 230 to, let's call it 280 grams per ton silver. Like, when would we expect that type of material to be mined and processed through the mill? Is that more of a 2027 thing? Exactly. 2027. Okay. Okay, good. Maybe just last one for me, just on the guided capital spend this year. There's been quite a bit of spend budgeted at Terronera, particularly towards additional mine development, which is driving your higher ASIC. Just wondering if that reflects a catch-up on development that was anticipated to have been completed through the initial construction period, and if that drops off substantially, as we progress through the year. Would you see your development meter still as relatively behind where you'd like to be, through the early stages of the operation? Yeah. We're a little bit behind, but not relatively behind. You'll see that in our guidance that we put out in January, we had a $56 million capital budget for Terronera. Similarly, I think we spent almost $17 million in Q4 at Terronera, which we defined as sustaining capital. Obviously, moving from commercial production into or from construction into commercial production, we have had some capital programs slosh into Q4 and ultimately Q1, Q2. As we move forward through Terronera, we expect that to come down. There are one-time activities that are included in this CapEx. For example, as we already talked about the LNG plant and the completion of that. We're waiting on a CONAGUA permit for waste dump two. That's gonna reduce our trucking capacity, and we'd have some development around waste dump 2. We expect that. We have a backfill plant that we're currently leasing. We're gonna buy that. There's a number of one-time items in our sustaining CapEx that you could argue is related to the actual build of Terronera. Obviously, we're taking that through sustaining CapEx. We don't wanna play with numbers and start calling certain things growth or sustaining. At this point, it is what it is, but do expect that to come down as we move through 2026 and ultimately, 2027. We expect to be at a regular sustaining CapEx rate. Okay, perfect. Thanks for taking my questions. No problem. Thanks a lot, Wayne. Those are very good questions. Thank you. The next question comes from Heiko Ihle with H.C. Wainwright. Please go ahead. Hello there, and team, thanks for taking my questions. Hey, Heiko. Nice to hear from you. Hey, Terronera commercial production obviously was October 1st, you know, we'll be in March 1st here in the very near future, it's five months later. You want to just maybe provide the audience here with a little bit of color on how things went since then, maybe things that went better, things that went worse, any sort of bottlenecks in supply chains or at site, or just things that came a little bit different from your expectations? Again, not necessarily just worse, but also, I mean, I assume some things went substantially better than you thought. Do you mean over the course of the construction period, or just over operations of the last five months, Heiko? Operations over the last 5 months. I mean, to be honest, I mean, it's our first time doing an initial build, our first mine that we brought into commercial production. Obviously, there's things that have gone extremely well, things that we wish could be better. I mean, I think it's normal through a ramp-up phase, that it's two steps forward, one step back. That's what through all of our past experiences and Don's experiences. There's things that we felt like we could improve on maybe from a initial startup and ramp-up, better knowledge almost of going to the initial plan. Everybody has different ideas, it's sticking to the original plan. From that, starting with the variables of trying different reagents at different times, putting various oxygens through it. Because of the terrain around Terronera, the topography at all, it's very mountainous. We don't have a lot of flexibility with laydown yards. We only have about 80,000 tons, even less than that right now, stockpile that sits near the plant. What comes out of the mine kinda gets fed right into the plant. We're continually learning about the ore body, trying to find what's best from a recovery standpoint. Again, January, February, we've seen very good throughput up until Sunday night. We obviously shut down for a couple days. Again, going forward, we expect that to be very good. And it's the gradual ramp-up of recoveries. We've been running lower silver or silver grades, as Wayne kind of pointed out, and those will improve through the year, and we expect recoveries to improve with that. I think our team's been phenomenal at finding flexible ideas using plans B and C to get to where we need to get to. Now we wanna get into the rhythm and kind of be steady state and get into normal course operations. We look forward to that. Fair enough. Just, like, I guess a little bit more touchy-feely, as silver is at $94 right now, I mean, assuming silver prices stay here or maybe even, you know, go up a little bit more, is there an impact, a quantifiable impact of where you mine across your asset base and what you, internally are envisioning on mining costs, like direct costs, for labor and longevity across your asset base? Yeah. I mean, that's a very big question. You hinted at some of that earlier. Sorry, go ahead. That's a very broad question of with $94, first off, it's a phenomenal environment, and we expect cash flows to be very significant. There's a big impact to us at Guanaceví because we pay a significant royalty at Guanaceví, 16% to Minera Frisco that owns the main concessions of that. Further with there, we toll ore. I think in Q4, we did close to 20% of our throughput was tolled ore. That's gonna continue. Obviously, there's a lot of family-run operations. The government built in 1981, that Guanaceví plant, and we're required to take up to 10%. Quite frankly, it extends the life of our mine. We get good margins on some of that tolled ore. It's just expensive to buy. Flip side of that, Special Mining Duty, which is an EBITDA tax, and that's included in our cost per ton and our direct cost per ton. With higher prices, and we kind of put this in our guidance news release, it's gonna drive our direct cost per ton in. Again, for our audience, we have a direct operating cost per ton, which is mining, milling, and our indirect costs. Our direct costs include royalties, duties, and purchased ore. Those last three items go up with higher prices. We still have great margins, but it means rising cost per ton. We get a lot of questions of why are costs rising. For the costs that we can control, we've been through our negotiations with our unions out of Mexico and our general increase is about 6%, which is a bit higher than our budgeted number of 5%. That was all included in guidance. Of course, we're gonna start seeing pressure on our inputs. I think that's just natural at these prices. It's our job as management to work through that. That's all included in our guidance numbers. I think it's imperative at Kolpa and Terronera, we have a lot smaller royalties there, so it's easier to contain those costs. Of course, as we evaluate projects going forward, we're looking at these higher prices and what's the impact long term on costs. I don't know if that fully answers your question, Heiko, but again, in our guidance news release, we kinda touch on that, in depth a bit. Yeah. Yeah. No, you did. You got exactly where I wanted to go with this. Thank you very much. I'll get back in the queue. Have a good weekend. Thanks, Heiko. Very good question. The next question comes from Soundarya Iyer with B. Riley. Please go ahead. Hi, team. Congratulations on the quarter. My question is more on this derivative hedge. I mean, there is good amount of detail in the MD&A, but, could you help me understand, you know, the remaining notional exposure and the cash settlement cadence over the next 12 months? What about the risk management strategy in order to manage this strength in precious metals? I'm happy to talk about that. I mean, it's an important part right now on our balance sheet that under the project loan facility that we borrowed to build the Terronera mine, we borrowed $135 million from two lenders. When we went into that facility agreement back in 2022, we were required to hedge 68,000 ounces of gold, and we locked that gold price in March of 2024 at $2,325. Today, or at December 31st, we had about 50,000 ounces of that gold hedge remaining. That gold hedge is gonna unwind through 2026 and into 2027. I think we're through it in Q2 of 2027. Ultimately, on our balance sheet, you can see that we do a mark-to-market adjustment that holds that difference. That liability sits on our balance sheet. We recognize that loss on that derivative liability through the income statement in the year. A very significant amount, and we try to adjust it for adjusted earnings purposes. Again, we, as a company, have a policy that we would not like to hedge our silver. We have a small hedge in place from a collar, again from that project loan facility. We have a policy to try to remain unhedged. Of course, from a silver standpoint, if you're making an investment in a silver company, you believe silver price likely going higher. We wanna give that upside, and we feel like there's a lot of upside there in silver. We hedge the gold, which was a by-product, and again, we're through that mid 2027. Thank you, Dan, for all that color. Just one more on this Mexican peso appreciation, which was again a headwind on the costs this year, right? Any hedging or risk management strategy to, you know, cover that for 2026? Is there any sensitivity at, you know, what exchange rate does this currency, you know, start to impact meaningfully, margins or costs? Hi, Soundarya, this is Elizabeth. I'll take that question on the foreign exchange. As you see, we do have some Mexican peso hedges in place. I believe at the end of 2025, there were around 19 peso to the dollar remaining. We don't have very many left, and with lower prices, we haven't put many on recently. It's hard to hedge at 17 peso to the U.S. dollar. We are taking opportunities to hedge where it is appropriate for the Mexican peso. One of the advantages with adding Kolpa to our portfolio is that we have reduced our percentage exposure to the peso as well. The Peruvian sol is more steady for us. We do have that diversification as well. Thank you, Allison. I'll get back into the queue. Thanks for the question, Soundarya Iyer. The next question comes from Cosmos Chiu with CIBC. Please go ahead. Hi. Thanks, Dan and team. Maybe my first question is, sorry, also on Terronera, but just I'm trying to kind of quantify it. You know, Terronera costs were fairly high in Q4, $50, $65, $70 an ounce. You know, Dan, you've talked about one-time costs, LNG plants and stuff. In 2026, you're guiding to $28-$29. I'm just trying to understand, you know, how it can drop in 2026. Is it gonna be more back-end weighted? You're gonna have some quarters that might be over $29, some quarters below $29 an ounce? If you have another quarter of $65, it'd be hard to average out to $28-$29 for the full year. Well, the good news is 65 was in Q4 of 2025. Exactly. Our guidance is only for 2026. We don't expect Q1 to be as elevated as it was in Q4. We've got some severance costs of moving off from various construction people in January, but we do expect that cost to decrease over the year. Q1 will be higher than Q2. Q2 will be higher than Q3. Q3 and Q4, we have higher grades coming in. On a per ounce basis, that cost per ton or that cost per ounce is gonna improve. The cost per ton won't become as drastic. I would point out that Q4 has the one-time expenditures of $16 million. Not necessarily one time, CapEx expense of $16 million-$17 million. In Q4, that includes one-time initial CapEx that flowed into Q4. We have that in Q1. We'll have less of that in Q2. Q3, Q4, we should get pretty flattened out sustaining CapEx. That is gonna be the biggest driver of our cost per ounce increase at All-in sustaining costs. Yes. Similarly, our cost per ton, as we get more rhythm at site, we expect that to come in. We move from the temporary diesel gen sets to the LNG plant. That's cost improvement. There's a number of things that are gonna come through cost that are gonna come through the year. We've been saying out to the market and to analysts, "Look, Q1's our first quarter production, it's not indicative of what the future is gonna hold at Terronera." Again, we expect Q1 to be better, we expect Q2 to be better than Q1, and I think that's gonna come through. Great. Thanks. Maybe, you know, broader scale, can we talk a bit about Mexico, Jalisco? You know, certainly, some volatility in the area. Has it, you know, resulted or necessitated any change in security protocols on site at Terronera? Has it necessitated any kinda changes to systems in place, you know, to make sure that it's kinda, you know, in response to the situation? Then on top of that, can you talk about supplies on site, you know, consumables on site? You know, have you stocked up in light of what's happening in terms of fuel, in terms of consumables, in terms of spare parts? How should we look at it? No, it was a very fair question, considering what we saw this past week. Obviously unexpected. I think that was something we've never experienced in Mexico. Our biggest concern, obviously, first and foremost, is for our people and with Jalisco going to Code Red, shutting down Sunday night. The major thing about coming back from an operations is the supply lines out of Puerto Vallarta up to site. We're about an hour and 15, an hour and a half drive from Puerto Vallarta to site. Because of the topography of Terronera, we don't have a lot of storage space. We have about one week's supply of food for the camp, two to three days supply of water. We had a delivery of water on Monday that helped. Obviously, we're very concerned about diesel, and transporting that. Going forward, I don't suspect we'll change our security around the Terronera mine. It will continue as is. We have to look at our protocols on shipments. Shipments coming up, shipments coming out, our concentrate shipments. We already have security protocols around all the shipments going out. Some of the shipments coming up, I think we'll just have to look at that, maybe beef it up a little bit. We don't expect a dramatic increase in security costs at this time. Of course, we have to monitor what this impact will have across the region if there becomes instability with all these groups in Mexico. As of right now, we don't have a huge change, just an increase of presence around our transportation lines. Mm-hmm. Great. Then maybe one last question, more of an accounting question here. With Bolanitos, the sale closing in Q1, is there any kinda accounting nuances or impact that we should be aware of for Q1? Is there gonna be some type of one-time gain or loss? Then can you talk about Mexican taxes as well? My understanding is that, you know, Mexico, cash taxes are higher on the first half or even in Q1. Is that what's happening here? You know, with the Terronera construction costs, the CapEx, does that help you offset some of those Mexican taxes? Yeah. Hold on. Can we just clarify your second question about Bolanitos taxes? You said something around timing of end of the year versus... Oh, yeah, overall. Yeah, overall, just more like Guanaceví. Sorry. I guess, number one, Bolanitos, the deal is closing or closed in Q1. Is there any accounting sort of nuances or entries or impact that we should be aware of? Yeah. Second part is just, you know, overall Mexico taxes, how we should look at it in terms of quarterly. Sorry, Elizabeth. Yeah, this is Elizabeth Soralis. I'll take that question. Yes, the Bolanitos sale closed January 15. And we will be recognizing that during our Q1 financials, obviously. And we are anticipating, as you saw, we sold it for approximately $50 million. For accounting, there's different adjustments to that, depending on the value of the shares that we acquired as a result. And then we were carrying it for around $25 million at the end of the year. We are anticipating an accounting gain on that in Q1. And that math can be done using our year-end financial statements. Your question about Mexico taxes. Guanaceví is paying Mexico taxes and pays installments regularly on those Mexico income profit taxes there. Terronera, as you commented, does have construction costs, which are recognized as tax losses. As it starts to make taxable profits, those losses will offset those taxable profits during 2026. Depending on how the silver price goes, drives how quickly those losses will be utilized, when we will start paying income taxes in cash in Mexico for Terronera. Great. There's no big true up in Mexico, Mexican cash taxes in the first half of 2026, where I see that somewhere else in other companies, but I guess not here. No. On our sale of Bolanitos, we have historical losses that are designed or we can use that we won't have to pay a tax on our Bolanitos debt. At this point. That's our anticipation, yeah. Great. Great. Thanks, Dan, Elizabeth. Those are all the questions I have. Thanks a lot. Thanks, Oz. Good questions. The next question comes from Alex Terentiew with National Bank. Please go ahead. Hey, guys. Thanks for taking my questions. I guess I was a bit slow with my fingers. A lot of questions already asked. Nonetheless, one question still for me here on Kolpa. Can you just clarify for me then, as it comes to that mine with permitting and getting 2,500, are you waiting for additional permits? Cause I thought 2,500 is kind of the ultimate expansion rate that you wanna get at. Based on your commentary guides, it sounds like you're gonna get there a lot sooner. Just wanted to make sure I'm clear on the expectations there. Yeah. We are getting there a lot sooner. I think it's a testament to the team that we acquired when we bought Kolpa. They're very confident people. In December, they received the construction permit to build out the Kolpa plant, which is really a expansion, the crushing facility, new crusher, ball mill to go to 2,500, then there's some additional flotation cells that need to be done. It, of course, expanding the mine underground. They received that construction permit. They're almost through that. We expect to be testing the ball mill relatively shortly, so let's say March. In our guidance, we did have 2,400 tons throughput for the average for the year. We've been running just over 2,300 over the last couple weeks. There has been a lot of rain in that area, and we've battling how much rain there's been here in Q1, so it slowed us down a little bit from a production standpoint. The construction standpoint, like I say, we've been very impressed with how it's gone. From the construction standpoint, we can operate it, but we do have to get an operating permit, which generally comes a month to two months, maybe three months after the construction phase is done. We are allowed to test that circuit and go through that. Again, hopefully in Q2, we're approaching 2,500. The underground mine will be running around 2,300 tons per day. As we've talked about before, with the underground mine, it's opening up more faces, more employees, staff. You're not gonna get a lot of economies of scale from the underground portion of it. The additional tons for the first half of the year will come from a lower grade pit that's within the area, and we'll try to fill that with some contractor ore as well. We are ahead upon the above ground surface. There's still some work to be done underground, we are in very good shape right now. Okay. Great to hear. Just one last question on Pitarrilla. A lot's happening there this year. Can you remind me of permitting timelines or kind of, you know, what you're doing to advance that this year and what news we maybe could expect, whether it's later this year or early next year on the permitting for that project? Yeah. I'll give a quick overview, and I might pass it over to Donald Gray, our COO. I mean, obviously we're spending $68 million at Pitarrilla. We really believe in the project. We like everything we've seen thus far. What makes Pitarrilla kinda special is the volumes that you can get out in such a tight space. There's a manto that's got 7 to 8 million tons of what would be ore once that feasibility study is complete, and then three feeder structures that come up and through it. We've been working on a mine plan, and that mine plan's gonna dictate the scale of the plant. Now, the plant has already been permitted. Underground mining's already been permitted. We're waiting on a tailings storage facility permit. It's gonna be a dry stack tailings. We've been working on the site. We've been working on the engineering. We've been going back and forth with the state level SEMARNAT on how to submit this and how to submit it most efficiently. I think right now our projection is that we're aiming for a Q1 2027 permit to receive that tailings storage facility permit. Beyond that, there's additional permitting that's required, such as CFE for power, but that's something that we can work through during our construction timeline, as we did with Terronera. Of course, we'll need temporary power source during the construction. It's a question of when we can bring on power sources at the end of that. Don, I don't know if we wanna get in too much more detail of it, but there's a lot of permits that we've gone after. We've spent the past 12 months working on that permit to make sure we're getting ahead of where we effectively were when we started building Terronera. Don, do you have any color you wanna add? Just that I think the permitting schedule really lines up well with the, with the project work that we need to do to finish the feasibility, get into the basic engineering, get the, like we mentioned in the press release, the long lead items or the major pieces of equipment on order so we can do the detail engineering and then head into construction. I think what you'll see is the engineering will be quite advanced by the time we go into construction, and we'll have a good idea on where the costs are and that kind of thing. I think the main gating item we're gonna get at Pitarrilla from a construction standpoint is that last permit. We'll be in very good shape, we feel, when we can get that permit. Great. Thanks for your time. Thanks for the questions, Alex. Much appreciated. This concludes the question and answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks. Please go ahead. Well, thank you, operator, and thanks everyone for attending our Q4 financial earnings call. Again, 2026 will be a big year for Endeavour. We're excited with what we can do with Terronera and getting that operation into a steady state, full rhythm by midyear. What Kolpa is gonna do for us and ultimately advancing Pitarrilla to take us to where we need to go, and that's, again, our goal to become a premier senior silver producer. Thanks a lot and have a good day. This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Speaker 8: Standing by. This is the conference operator. Welcome to the Endeavour Silver fourth quarter and year-end 2025 financial results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press Star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator pressing Star then 0. I would now like to turn the conference over to Allison Pettit, Vice President, Investor Relations. Please go ahead. Standing by. standing by This is the conference operator. this is the conference operator Welcome to the Endeavour Silver fourth quarter and year-end 2025 financial results conference call. welcome to the endeavour silver fourth quarter and year-end 2025 financial results conference call As a reminder, all participants are in listen-only mode, and the conference is being recorded. as a reminder all participants are in listen-only mode and the conference is being recorded After the presentation, there will be an opportunity to ask questions. after the presentation there will be an opportunity to ask questions To join the question queue, you may press Star then one on your telephone keypad. to join the question queue you may press star then one on your telephone keypad Should you need assistance during the conference call, you may signal an operator pressing Star then 0. should you need assistance during the conference call you may signal an operator pressing star then 0 I would now like to turn the conference over to Allison Pettit, Vice President, Investor Relations. i would now like to turn the conference over to allison pettit vice president investor relations Please go ahead. please go ahead

Speaker 2: Thank you, operator, and good morning, everyone. Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com. On today's call, we have Dan Dickson, Endeavour Silver's CEO, Elizabeth Soralis, our CFO, and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open the call for questions. Now over to Dan. Thank you, operator, and good morning, everyone. thank you operator and good morning everyone Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. before we get started i ask that you view our md&a for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements Our MD&A and financial statements are available on our website at edrsilver.com. our md&a and financial statements are available on our website at edrsilver.com On today's call, we have Dan Dickson, Endeavour Silver's CEO, Elizabeth Soralis , our CFO, and Don Gray, Endeavour's COO. on today's call we have dan dickson endeavour silver's ceo elizabeth soralis our cfo and don gray endeavour's coo Following Dan's formal remarks, we will open the call for questions. following dan's formal remarks we will open the call for questions Now over to Dan. now over to dan

Speaker 4: Thank you, Allison, and welcome everyone. Before reviewing our 2025 results, I'd like to provide a brief update on Terronera. Operations were temporarily impacted by recent security events in Mexico and Jalisco's Code Red mandate, which required civilians to shelter in place. To comply with the mandate, the uncertainty surrounding the event, and to ensure the safety of our people, we paused Terronera's operations Sunday evening. Operations resumed Wednesday, February 25th, once supply routes were confirmed to be secure. We will continue to monitor the developments closely, and the safety of our employees and contractors remain our top priority. With that, I'd like to briefly touch on the current silver and gold market. Over the past year, we've seen exceptional gains in renewed investor interest in precious metals, driven by inflationary pressures, global economic uncertainty, and ongoing political tensions. Thank you, Allison, and welcome everyone. thank you allison and welcome everyone Before reviewing our 2025 results, I'd like to provide a brief update on Terronera. before reviewing our 2025 results i'd like to provide a brief update on terronera Operations were temporarily impacted by recent security events in Mexico and Jalisco's Code Red mandate, which required civilians to shelter in place. operations were temporarily impacted by recent security events in mexico and jalisco's code red mandate which required civilians to shelter in place To comply with the mandate, the uncertainty surrounding the event, and to ensure the safety of our people, we paused Terronera's operations Sunday evening. to comply with the mandate the uncertainty surrounding the event and to ensure the safety of our people we paused terronera's operations sunday evening Operations resumed Wednesday, February 25th, once supply routes were confirmed to be secure. operations resumed wednesday february 25th once supply routes were confirmed to be secure We will continue to monitor the developments closely, and the safety of our employees and contractors remain our top priority. we will continue to monitor the developments closely and the safety of our employees and contractors remain our top priority With that, I'd like to briefly touch on the current silver and gold market. with that i'd like to briefly touch on the current silver and gold market Over the past year, we've seen exceptional gains in renewed investor interest in precious metals, driven by inflationary pressures, global economic uncertainty, and ongoing political tensions. over the past year we've seen exceptional gains in renewed investor interest in precious metals driven by inflationary pressures global economic uncertainty and ongoing political tensions Silver and gold continue to be viewed as safe haven assets, with silver also benefiting from rising industrial demand, especially in the green energy and technology spaces. This momentum has continued into 2026 as gold trades well above $5,000 and silver is elevated above $90, reflecting ongoing confidence and reinforcing the importance of our strategic initiatives and our commitment to delivering value for our shareholders. We are extremely well-positioned to benefit from the current silver prices and believe there is substantial runway remaining in this cycle. Moving over to the specifics of the company, 2025 was a transformational year for Endeavour Silver. We took a major step forward with the acquisition of Kolpa in May, Terronera achieving commercial production in October, and agreed to the sale of the Bolanitos Mine, which closed in January. Silver and gold continue to be viewed as safe haven assets, with silver also benefiting from rising industrial demand, especially in the green energy and technology spaces. silver and gold continue to be viewed as safe haven assets with silver also benefiting from rising industrial demand especially in the green energy and technology spaces This momentum has continued into 2026 as gold trades well above $5,000 and silver is elevated above $90, reflecting ongoing confidence and reinforcing the importance of our strategic initiatives and our commitment to delivering value for our shareholders. this momentum has continued into 2026 as gold trades well above $5,000 and silver is elevated above $90 reflecting ongoing confidence and reinforcing the importance of our strategic initiatives and our commitment to delivering value for our shareholders We are extremely well-positioned to benefit from the current silver prices and believe there is substantial runway remaining in this cycle. we are extremely well-positioned to benefit from the current silver prices and believe there is substantial runway remaining in this cycle Moving over to the specifics of the company, 2025 was a transformational year for Endeavour Silver. moving over to the specifics of the company 2025 was a transformational year for endeavour silver We took a major step forward with the acquisition of Kolpa in May, Terronera achieving commercial production in October, and agreed to the sale of the Bolanitos Mine, which closed in January. we took a major step forward with the acquisition of kolpa in may terronera achieving commercial production in october and agreed to the sale of the bolanitos mine which closed in january In December, we raised $350 million through a convertible debt offering, strengthening our balance sheet and positioning ourselves to advance the Pitarrilla development asset. These milestones lay a solid foundation for performance and sustained growth as we look ahead to the future and position ourselves as a stronger company within the industry. In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, including base metal production from Kolpa, making a 48% increase compared to 2024. In Q4, Endeavour Silver produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces. This represents a 146% increase compared to Q4 of 2025 due to the addition of Kolpa, Terronera, and the higher grades at Bolanitos. In December, we raised $350 million through a convertible debt offering, strengthening our balance sheet and positioning ourselves to advance the Pitarrilla development asset. in december we raised $350 million through a convertible debt offering strengthening our balance sheet and positioning ourselves to advance the pitarrilla development asset These milestones lay a solid foundation for performance and sustained growth as we look ahead to the future and position ourselves as a stronger company within the industry. these milestones lay a solid foundation for performance and sustained growth as we look ahead to the future and position ourselves as a stronger company within the industry In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, including base metal production from Kolpa, making a 48% increase compared to 2024. in 2025 endeavour silver produced 11 million ounces of silver equivalent metal including base metal production from kolpa making a 48% increase compared to 2024 In Q4, Endeavour Silver produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces. in q4 endeavour silver produced 2 million ounces of silver and 14,000 ounces of gold totaling just shy of 4 million silver equivalent ounces This represents a 146% increase compared to Q4 of 2025 due to the addition of Kolpa, Terronera, and the higher grades at Bolanitos. this represents a 146% increase compared to q4 of 2025 due to the addition of kolpa terronera and the higher grades at bolanitos Excluding Coba and Terronera, this was a 27% increase compared to the same period last year. In 2025, the company reported record revenue of $468 million, up 115% compared to 2024, with cost of sales of $385 million, mine operating earnings of $83 million, and mine operating cash flow before taxes of $156 million. Mine operating cash flow before working capital changes rose by 116%, while cash costs increased to $19 per ounce of payable silver, primarily driven by the substantial changes in our production profile. In Q4, Endeavour recognized adjusted net earnings of $4.8 million or an adjusted earnings of $0.02 per share. Excluding Coba and Terronera, this was a 27% increase compared to the same period last year. excluding coba and terronera this was a 27% increase compared to the same period last year In 2025, the company reported record revenue of $468 million, up 115% compared to 2024, with cost of sales of $385 million, mine operating earnings of $83 million, and mine operating cash flow before taxes of $156 million. in 2025 the company reported record revenue of $468 million up 115% compared to 2024 with cost of sales of $385 million mine operating earnings of $83 million and mine operating cash flow before taxes of $156 million Mine operating cash flow before working capital changes rose by 116%, while cash costs increased to $19 per ounce of payable silver, primarily driven by the substantial changes in our production profile. mine operating cash flow before working capital changes rose by 116% while cash costs increased to $19 per ounce of payable silver primarily driven by the substantial changes in our production profile In Q4, Endeavour recognized adjusted net earnings of $4.8 million or an adjusted earnings of $0.02 per share. in q4 endeavour recognized adjusted net earnings of $4.8 million or an adjusted earnings of $0.02 per share Due to realized losses from derivative contracts and higher financing costs in relation to the early repayment of the debt facility. Direct operating costs per ton increased by 8% this year, primarily driven by elevated costs at Terronera during its initial quarter of production. Looking ahead, we anticipate a substantial reduction in these costs as we transition from diesel to liquefied natural gas in Q2 of 2026, complete the demobilization of our construction team, benefit from workforce and logistics optimization plans implemented in January, and maintain a throughput at 2,000 tons per day through 2026. Kolpa will also see an improved cost efficiency as its plant expands 2,500 per day tons per day here in Q1. For clarity, our direct operating costs per ton include direct input costs associated with mining, milling, and site level G&A. Due to realized losses from derivative contracts and higher financing costs in relation to the early repayment of the debt facility. due to realized losses from derivative contracts and higher financing costs in relation to the early repayment of the debt facility Direct operating costs per ton increased by 8% this year, primarily driven by elevated costs at Terronera during its initial quarter of production. direct operating costs per ton increased by 8% this year primarily driven by elevated costs at terronera during its initial quarter of production Looking ahead, we anticipate a substantial reduction in these costs as we transition from diesel to liquefied natural gas in Q2 of 2026, complete the demobilization of our construction team, benefit from workforce and logistics optimization plans implemented in January, and maintain a throughput at 2,000 tons per day through 2026. looking ahead we anticipate a substantial reduction in these costs as we transition from diesel to liquefied natural gas in q2 of 2026 complete the demobilization of our construction team benefit from workforce and logistics optimization plans implemented in january and maintain a throughput at 2,000 tons per day through 2026 Kolpa will also see an improved cost efficiency as its plant expands 2,500 per day tons per day here in Q1. kolpa will also see an improved cost efficiency as its plant expands 2,500 per day tons per day here in q1 For clarity, our direct operating costs per ton include direct input costs associated with mining, milling, and site level G&A. for clarity our direct operating costs per ton include direct input costs associated with mining milling and site level g&a Our definition of direct costs per ton includes royalties, mining duties, and the purchase of third-party material. Changes in the metal price have a meaningful impact on our direct cost per ton. For example, for every dollar increase in silver, our cost per ton rise by about $0.90 at Terronera, $0.50 at Kolpa, and $3.80 per ton at Guanaceví, mainly due to the higher royalties, duties, and third-party ore purchases, elevated corporate G&A, and the addition of Terronera. All-in sustaining costs net of byproduct credits were elevated this quarter with higher royalties, duties, third-party ore purchases, elevated corporate G&A, and the addition of Terronera. Terronera incurred higher costs due to higher sustaining capital expenses during the first quarter of operations. Terronera's All-in sustaining cost includes capital expenditures of $16.3 million for the quarter, which worked out to approximately $48 All-in sustaining cost per ounce. Our definition of direct costs per ton includes royalties, mining duties, and the purchase of third-party material. Changes in the metal price have a meaningful impact on our direct cost per ton. our definition of direct costs per ton includes royalties mining duties and the purchase of third-party material. changes in the metal price have a meaningful impact on our direct cost per ton For example, for every dollar increase in silver, our cost per ton rise by about $0.90 at Terronera, $0.50 at Kolpa, and $3.80 per ton at Guanaceví, mainly due to the higher royalties, duties, and third-party ore purchases, elevated corporate G&A, and the addition of Terronera. for example for every dollar increase in silver our cost per ton rise by about $0.90 at terronera $0.50 at kolpa and $3.80 per ton at guanaceví mainly due to the higher royalties duties and third-party ore purchases, elevated corporate g&a, and the addition of terronera All-in sustaining costs net of byproduct credits were elevated this quarter with higher royalties, duties, third-party ore purchases, elevated corporate G&A, and the addition of Terronera. all-in sustaining costs net of byproduct credits were elevated this quarter with higher royalties duties third-party ore purchases elevated corporate g&a and the addition of terronera Terronera incurred higher costs due to higher sustaining capital expenses during the first quarter of operations. terronera incurred higher costs due to higher sustaining capital expenses during the first quarter of operations Terronera's All-in sustaining cost includes capital expenditures of $16.3 million for the quarter, which worked out to approximately $48 All-in sustaining cost per ounce. terronera's all-in sustaining cost includes capital expenditures of $16.3 million for the quarter which worked out to approximately $48 all-in sustaining cost per ounce This includes one-time investments related to new mining operations. These costs are expected to decrease as we move through 2026. The elevated corporate G&A was impacted by the divestiture of Bolanitos, the appreciation of deferred share units, and the integration of all our new operations. As of December 31st, 2025, the company's cash position stood at $215 million, providing us with the financial strength and flexibility to advance our strategic initiatives. This robust foundation allows us to remain nimble and responsive to new opportunities while staying focused on driving progress at Pitarrilla, where we continue to invest in exploration, technical studies, and the economic evaluation. As we move through 2026, our attention remains focused on several operational investment priorities across our main operations and projects, each serving as a catalyst for our continued success and growth in 2026. This includes one-time investments related to new mining operations. this includes one-time investments related to new mining operations These costs are expected to decrease as we move through 2026. these costs are expected to decrease as we move through 2026 The elevated corporate G&A was impacted by the divestiture of Bolanitos, the appreciation of deferred share units, and the integration of all our new operations. the elevated corporate g&a was impacted by the divestiture of bolanitos the appreciation of deferred share units and the integration of all our new operations As of December 31st, 2025, the company's cash position stood at $215 million, providing us with the financial strength and flexibility to advance our strategic initiatives. as of december 31st 2025 the company's cash position stood at $215 million providing us with the financial strength and flexibility to advance our strategic initiatives This robust foundation allows us to remain nimble and responsive to new opportunities while staying focused on driving progress at Pitarrilla, where we continue to invest in exploration, technical studies, and the economic evaluation. this robust foundation allows us to remain nimble and responsive to new opportunities while staying focused on driving progress at pitarrilla where we continue to invest in exploration technical studies and the economic evaluation As we move through 2026, our attention remains focused on several operational investment priorities across our main operations and projects, each serving as a catalyst for our continued success and growth in 2026. as we move through 2026 our attention remains focused on several operational investment priorities across our main operations and projects each serving as a catalyst for our continued success and growth in 2026 At Terronera, our primary focus is disciplined execution as we transition into higher grade zones in the second half of the year. We are seeing gradual improvements towards designed operating parameters, including nameplate throughput, recoveries, and mine output. Grades are aligning with plan. Operations are beginning to establish a consistent rhythm rather than the volatility of a typical ramp-up. As we eliminate ramp-up or start-up costs, we expect direct cost per ton to improve through the year. Secondly, at Kolpa, we are actively advancing our expansion initiative, increasing capacity from 2,000 tons per day to 2,500. We anticipate achieving this milestone in the coming weeks, which will enhance our throughput and support our growth objective. Additionally, we remain focused on delivering a resource estimate later this year. At Terronera, our primary focus is disciplined execution as we transition into higher grade zones in the second half of the year. at terronera our primary focus is disciplined execution as we transition into higher grade zones in the second half of the year We are seeing gradual improvements towards designed operating parameters, including nameplate throughput, recoveries, and mine output. we are seeing gradual improvements towards designed operating parameters including nameplate throughput recoveries and mine output Grades are aligning with plan. grades are aligning with plan Operations are beginning to establish a consistent rhythm rather than the volatility of a typical ramp-up. operations are beginning to establish a consistent rhythm rather than the volatility of a typical ramp-up As we eliminate ramp-up or start-up costs, we expect direct cost per ton to improve through the year. as we eliminate ramp-up or start-up costs we expect direct cost per ton to improve through the year Secondly, at Kolpa, we are actively advancing our expansion initiative, increasing capacity from 2,000 tons per day to 2,500. secondly at kolpa we are actively advancing our expansion initiative increasing capacity from 2,000 tons per day to 2,500 We anticipate achieving this milestone in the coming weeks, which will enhance our throughput and support our growth objective. we anticipate achieving this milestone in the coming weeks which will enhance our throughput and support our growth objective Additionally, we remain focused on delivering a resource estimate later this year. additionally we remain focused on delivering a resource estimate later this year At Pitarrilla, the company's next major development project and one of the world's largest undeveloped silver deposits, our commitment remains very strong, with a planned $68 million investment in 2026. This includes the completion of an NI 43-101 feasibility study targeted for completion in Q3 2026, along with early work such as commencement of the construction camp, continued ramp advancement through the manto, and procurement of long lead equipment to support the basic and detailed engineering. We are positioning the project to have a well-informed construction decision in early 2027, supporting our strategic strategy of significant organic growth. 2025 marked a defining chapter in our story. As we continue on this exciting path, I want to extend our gratitude to our valued shareholders and stakeholders for your confidence and partnership. At Pitarrilla, the company's next major development project and one of the world's largest undeveloped silver deposits, our commitment remains very strong, with a planned $68 million investment in 2026. at pitarrilla the company's next major development project and one of the world's largest undeveloped silver deposits our commitment remains very strong with a planned $68 million investment in 2026 This includes the completion of an NI 43-101 feasibility study targeted for completion in Q3 2026, along with early work such as commencement of the construction camp, continued ramp advancement through the manto, and procurement of long lead equipment to support the basic and detailed engineering. this includes the completion of an ni 43-101 feasibility study targeted for completion in q3 2026 along with early work such as commencement of the construction camp continued ramp advancement through the manto and procurement of long lead equipment to support the basic and detailed engineering We are positioning the project to have a well-informed construction decision in early 2027, supporting our strategic strategy of significant organic growth. 2025 marked a defining chapter in our story. we are positioning the project to have a well-informed construction decision in early 2027 supporting our strategic strategy of significant organic growth 2025 marked a defining chapter in our story As we continue on this exciting path, I want to extend our gratitude to our valued shareholders and stakeholders for your confidence and partnership. as we continue on this exciting path i want to extend our gratitude to our valued shareholders and stakeholders for your confidence and partnership We remain committed to creating lasting value, driving operational excellence, and building a premier senior silver company. Thank you for your continued support and engagement. With that, I'm happy to open this to questions. Operator, please proceed to our Q&A session. We remain committed to creating lasting value, driving operational excellence, and building a premier senior silver company. we remain committed to creating lasting value driving operational excellence and building a premier senior silver company Thank you for your continued support and engagement. thank you for your continued support and engagement With that, I'm happy to open this to questions. with that i'm happy to open this to questions Operator, please proceed to our Q&A session. operator please proceed to our q&a session

Speaker 8: Thank you. To join the question queue, you may press Star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star then two. The first question comes from Wayne Lam with TD Securities. Please go ahead. Thank you. thank you To join the question queue, you may press Star then 1 on your telephone keypad. to join the question queue you may press star then 1 on your telephone keypad You will hear a tone acknowledging your request. you will hear a tone acknowledging your request If you're using a speakerphone, please pick up your handset before pressing any keys. if you're using a speakerphone please pick up your handset before pressing any keys To withdraw your question, please press Star then two. to withdraw your question please press star then two The first question comes from Wayne Lam with TD Securities. the first question comes from wayne lam with td securities Please go ahead. please go ahead

Speaker 10: Yeah, thanks. Morning, guys, or morning, afternoon over here. I'm just wondering, just on the updates operational at Terronera, can you discuss the mill availability and what happened with the electrical interruptions? If I recall, you guys also had an electrical issue in late September, which kind of resulted in the delay to commercial production. Just wondering exactly what's going on there. Have you seen an improvement on those issues? Have those been resolved in the first two months of this year? Yeah, thanks. yeah thanks Morning, guys, or morning, afternoon over here. morning guys or morning afternoon over here I'm just wondering, just on the updates operational at Terronera, can you discuss the mill availability and what happened with the electrical interruptions? i'm just wondering just on the updates operational at terronera can you discuss the mill availability and what happened with the electrical interruptions If I recall, you guys also had an electrical issue in late September, which kind of resulted in the delay to commercial production. if i recall you guys also had an electrical issue in late september which kind of resulted in the delay to commercial production Just wondering exactly what's going on there. just wondering exactly what's going on there Have you seen an improvement on those issues? have you seen an improvement on those issues Have those been resolved in the first two months of this year? have those been resolved in the first two months of this year

Speaker 4: Yeah. Thanks for the question, Wayne. I mean, the quick answer is yes, we have seen a lot of improvement in January and February. We've done very well from a throughput standpoint. As you recall, back in September, we had resistors that had to replace early October, and it took six days, seven days for those to come in as they were one-time items. We had a lot of electrical disruptions just because we're on diesel gen sets. We were at max power, and we had to make some adjustments in Q4 to that. We were getting lots of starts and stops. Losing maybe one hour or two hours on various days. Starting and stopping impacts recoveries, obviously impacts throughput. We've seen that kind of stabilize late December obviously through January and February. Yeah. yeah Thanks for the question, Wayne. thanks for the question wayne I mean, the quick answer is yes, we have seen a lot of improvement in January and February. i mean the quick answer is yes we have seen a lot of improvement in january and february We've done very well from a throughput standpoint. we've done very well from a throughput standpoint As you recall, back in September, we had resistors that had to replace early October, and it took six days, seven days for those to come in as they were one-time items. as you recall back in september we had resistors that had to replace early october and it took six days seven days for those to come in as they were one-time items We had a lot of electrical disruptions just because we're on diesel gen sets. we had a lot of electrical disruptions just because we're on diesel gen sets We were at max power, and we had to make some adjustments in Q4 to that. we were at max power and we had to make some adjustments in q4 to that We were getting lots of starts and stops. we were getting lots of starts and stops Losing maybe one hour or two hours on various days. losing maybe one hour or two hours on various days Starting and stopping impacts recoveries, obviously impacts throughput. We've seen that kind of stabilize late December obviously through January and February. starting and stopping impacts recoveries obviously impacts throughput. we've seen that kind of stabilize late december obviously through january and february The most important part to those temporary diesel gen sets is we have received our permits to operate our LNG plant. We are allowed to vaporize our liquefied natural gas into natural gas and ultimately electricity. We are completing that connection point here in Q1. The provider of the liquefied natural gas has obtained their permit to transport, and they're just waiting on a storage permit on site, that we're gonna look at here or we expect to receive over the next couple weeks. Our expectation is that we'll be on our LNG plant in Q2. It does a significant thing for our stability of electrical continuity, but also from a cost standpoint. The most important part to those temporary diesel gen sets is we have received our permits to operate our LNG plant. the most important part to those temporary diesel gen sets is we have received our permits to operate our lng plant We are allowed to vaporize our liquefied natural gas into natural gas and ultimately electricity. we are allowed to vaporize our liquefied natural gas into natural gas and ultimately electricity We are completing that connection point here in Q1. we are completing that connection point here in q1 The provider of the liquefied natural gas has obtained their permit to transport, and they're just waiting on a storage permit on site, that we're gonna look at here or we expect to receive over the next couple weeks. the provider of the liquefied natural gas has obtained their permit to transport and they're just waiting on a storage permit on site that we're gonna look at here or we expect to receive over the next couple weeks Our expectation is that we'll be on our LNG plant in Q2. our expectation is that we'll be on our lng plant in q2 It does a significant thing for our stability of electrical continuity, but also from a cost standpoint. it does a significant thing for our stability of electrical continuity but also from a cost standpoint Going from diesel gen sets into the LNG plant takes us from $0.33 per MWh to $0.17, almost $8 a ton at this point. We're excited to get on that for a number of reasons. Obviously, reliability and cost being the main two. Going from diesel gen sets into the LNG plant takes us from $0.33 per MWh to $0.17, almost $8 a ton at this point. going from diesel gen sets into the lng plant takes us from $0.33 per mwh to $0.17 almost $8 a ton at this point We're excited to get on that for a number of reasons. we're excited to get on that for a number of reasons Obviously, reliability and cost being the main two. obviously reliability and cost being the main two

Speaker 10: Okay, great. Thanks. Maybe just on the grade profile at Terronera, you guys had previously guided the 122 gm silver and 2.5 gold through the first 6 months of operation. The guidance for this year implies that you'll average 120 gm through the entirety of 2026. Okay, great. okay great Thanks. thanks Maybe just on the grade profile at Terronera, you guys had previously guided the 122 gm silver and 2.5 gold through the first 6 months of operation. maybe just on the grade profile at terronera you guys had previously guided the 122 gm silver and 2.5 gold through the first 6 months of operation The guidance for this year implies that you'll average 120 g m through the entirety of 2026. the guidance for this year implies that you'll average 120 g m through the entirety of 2026

Speaker 4: Yep. Yep. yep

Speaker 10: I know you guys had talked about, you know, some of mining of the lower grade stockworks driving that, but just wondering if you might have any guidance on grades in terms of a split in H1 versus the prior 2022, and where we should think about that with the higher grades you're projecting into H2. Then just are the lower grades entirely being driven by that lowering of the cutoff, or is there some attribution as well to greater dilution or lower reconciliation versus the block model? I know you guys had talked about, you know, some of mining of the lower grade stockworks driving that, but just wondering if you might have any guidance on grades in terms of a split in H1 versus the prior 2022, and where we should think about that with the higher grades you're projecting into H2. i know you guys had talked about you know some of mining of the lower grade stockworks driving that but just wondering if you might have any guidance on grades in terms of a split in h1 versus the prior 2022 and where we should think about that with the higher grades you're projecting into h2 Then just are the lower grades entirely being driven by that lowering of the cutoff, or is there some attribution as well to greater dilution or lower reconciliation versus the block model? then just are the lower grades entirely being driven by that lowering of the cutoff or is there some attribution as well to greater dilution or lower reconciliation versus the block model

Speaker 4: I think the first couple questions, block model reconciliation has been relatively strong, better as we've moved forward and we've got deeper into the mine plan. We do have lower silver grades and ultimately gold grades because of some of that stockwork. Right now, that stockwork isn't a significant amount. As you know, in the back half of the year, we get into the main chute of Terronera, and that's the goal. That's where our highest grade points are, and that's where our biggest splits are. As far as the breakdown between H1 and H2, I don't have that rate in front of me, but it is a gradual increase, so Q1-Q2, Q3-Q4. Each quarter gets better, as we bring more and more of that chute in. I think the first couple questions, block model reconciliation has been relatively strong, better as we've moved forward and we've got deeper into the mine plan. i think the first couple questions block model reconciliation has been relatively strong better as we've moved forward and we've got deeper into the mine plan We do have lower silver grades and ultimately gold grades because of some of that stockwork. we do have lower silver grades and ultimately gold grades because of some of that stockwork Right now, that stockwork isn't a significant amount. right now that stockwork isn't a significant amount As you know, in the back half of the year, we get into the main chute of Terronera, and that's the goal. as you know in the back half of the year we get into the main chute of terronera and that's the goal That's where our highest grade points are, and that's where our biggest splits are. that's where our highest grade points are and that's where our biggest splits are As far as the breakdown between H1 and H2, I don't have that rate in front of me, but it is a gradual increase, so Q1- Q2, Q3- Q4. as far as the breakdown between h1 and h2 i don't have that rate in front of me but it is a gradual increase so q1- q2 q3- q4 Each quarter gets better, as we bring more and more of that chute in. each quarter gets better as we bring more and more of that chute in For those that are listening, we made the decision about almost one year ago now, maybe nine months ago, that we would go into a lower grade part of the ore body as we start with initial production, obviously, because we didn't wanna end up having ounces of silver and gold into our tailings, dam, ultimately, as we go through kind of your irregular startup issues and building up our recovery. This was by design, Wayne. Again, it's lining up relatively well to plan. We're slightly lower because we are taking that stockwork. It's very difficult to speak to that stockwork and the impact overall. As we go through the year, we'll bring more and more into the plan and more of the high grade stuff and hopefully go back to that stockwork later on. For those that are listening, we made the decision about almost one year ago now, maybe nine months ago, that we would go into a lower grade part of the ore body as we start with initial production, obviously, because we didn't wanna end up having ounces of silver and gold into our tailings, dam, ultimately, as we go through kind of your irregular startup issues and building up our recovery. for those that are listening we made the decision about almost one year ago now maybe nine months ago that we would go into a lower grade part of the ore body as we start with initial production obviously because we didn't wanna end up having ounces of silver and gold into our tailings dam ultimately as we go through kind of your irregular startup issues and building up our recovery This was by design, Wayne. this was by design wayne Again, it's lining up relatively well to plan. again it's lining up relatively well to plan We're slightly lower because we are taking that stockwork. we're slightly lower because we are taking that stockwork It's very difficult to speak to that stockwork and the impact overall. it's very difficult to speak to that stockwork and the impact overall As we go through the year, we'll bring more and more into the plan and more of the high grade stuff and hopefully go back to that stockwork later on. as we go through the year we'll bring more and more into the plan and more of the high grade stuff and hopefully go back to that stockwork later on

Speaker 10: Okay. maybe just as a follow-up to that, the mine plan in the early years of operation is, you know, in the, in the realm of, you know, 230 to, let's call it 280 grams per ton silver. Like, when would we expect that type of material to be mined and processed through the mill? Is that more of a 2027 thing? Okay. maybe just as a follow-up to that, the mine plan in the early years of operation is, you know, in the, in the realm of, you know, 230 to, let's call it 280 grams per ton silver. okay maybe just as a follow-up to that the mine plan in the early years of operation is you know in the in the realm of you know 230 to let's call it 280 grams per ton silver Like, when would we expect that type of material to be mined and processed through the mill? like when would we expect that type of material to be mined and processed through the mill Is that more of a 2027 thing? is that more of a 2027 thing

Speaker 4: Exactly. 2027. Exactly. 2027. exactly 2027

Speaker 10: Okay. Okay, good. Maybe just last one for me, just on the guided capital spend this year. There's been quite a bit of spend budgeted at Terronera, particularly towards additional mine development, which is driving your higher ASIC. Just wondering if that reflects a catch-up on development that was anticipated to have been completed through the initial construction period, and if that drops off substantially, as we progress through the year. Would you see your development meter still as relatively behind where you'd like to be, through the early stages of the operation? Okay. okay Okay, good. okay good Maybe just last one for me, just on the guided capital spend this year. maybe just last one for me just on the guided capital spend this year There's been quite a bit of spend budgeted at Terronera, particularly towards additional mine development, which is driving your higher ASIC. there's been quite a bit of spend budgeted at terronera particularly towards additional mine development which is driving your higher asic Just wondering if that reflects a catch-up on development that was anticipated to have been completed through the initial construction period, and if that drops off substantially, as we progress through the year. just wondering if that reflects a catch-up on development that was anticipated to have been completed through the initial construction period and if that drops off substantially as we progress through the year Would you see your development meter still as relatively behind where you'd like to be, through the early stages of the operation? would you see your development meter still as relatively behind where you'd like to be through the early stages of the operation

Speaker 4: Yeah. We're a little bit behind, but not relatively behind. You'll see that in our guidance that we put out in January, we had a $56 million capital budget for Terronera. Similarly, I think we spent almost $17 million in Q4 at Terronera, which we defined as sustaining capital. Obviously, moving from commercial production into or from construction into commercial production, we have had some capital programs slosh into Q4 and ultimately Q1, Q2. As we move forward through Terronera, we expect that to come down. There are one-time activities that are included in this CapEx. For example, as we already talked about the LNG plant and the completion of that. We're waiting on a CONAGUA permit for waste dump two. That's gonna reduce our trucking capacity, and we'd have some development around waste dump 2. We expect that. Yeah. yeah We're a little bit behind, but not relatively behind. we're a little bit behind but not relatively behind You'll see that in our guidance that we put out in January, we had a $56 million capital budget for Terronera. you'll see that in our guidance that we put out in january we had a $56 million capital budget for terronera Similarly, I think we spent almost $17 million in Q4 at Terronera, which we defined as sustaining capital. similarly i think we spent almost $17 million in q4 at terronera which we defined as sustaining capital Obviously, moving from commercial production into or from construction into commercial production, we have had some capital programs slosh into Q4 and ultimately Q1, Q2. obviously moving from commercial production into or from construction into commercial production we have had some capital programs slosh into q4 and ultimately q1 q2 As we move forward through Terronera, we expect that to come down. as we move forward through terronera we expect that to come down There are one-time activities that are included in this CapEx. there are one-time activities that are included in this capex For example, as we already talked about the LNG plant and the completion of that. for example as we already talked about the lng plant and the completion of that We're waiting on a CONAGUA permit for waste dump two. we're waiting on a conagua permit for waste dump two That's gonna reduce our trucking capacity, and we'd have some development around waste dump 2. that's gonna reduce our trucking capacity and we'd have some development around waste dump 2 We expect that. we expect that We have a backfill plant that we're currently leasing. We're gonna buy that. There's a number of one-time items in our sustaining CapEx that you could argue is related to the actual build of Terronera. Obviously, we're taking that through sustaining CapEx. We don't wanna play with numbers and start calling certain things growth or sustaining. At this point, it is what it is, but do expect that to come down as we move through 2026 and ultimately, 2027. We expect to be at a regular sustaining CapEx rate. We have a backfill plant that we're currently leasing. we have a backfill plant that we're currently leasing We're gonna buy that. we're gonna buy that There's a number of one-time items in our sustaining CapEx that you could argue is related to the actual build of Terronera. there's a number of one-time items in our sustaining capex that you could argue is related to the actual build of terronera Obviously, we're taking that through sustaining CapEx. obviously we're taking that through sustaining capex We don't wanna play with numbers and start calling certain things growth or sustaining. we don't wanna play with numbers and start calling certain things growth or sustaining At this point, it is what it is, but do expect that to come down as we move through 2026 and ultimately, 2027. at this point it is what it is but do expect that to come down as we move through 2026 and ultimately 2027 We expect to be at a regular sustaining CapEx rate. we expect to be at a regular sustaining capex rate

Speaker 10: Okay, perfect. Thanks for taking my questions. Okay, perfect. okay perfect Thanks for taking my questions. thanks for taking my questions

Speaker 4: No problem. Thanks a lot, Wayne. Those are very good questions. Thank you. No problem. no problem Thanks a lot, Wayne. thanks a lot wayne Those are very good questions. those are very good questions Thank you. thank you

Speaker 8: The next question comes from Heiko Ihle with H.C. Wainwright. Please go ahead. The next question comes from Heiko Ihle with H.C. the next question comes from heiko ihle with h.c Wainwright. wainwright Please go ahead. please go ahead

Speaker 7: Hello there, and team, thanks for taking my questions. Hello there, and team, thanks for taking my questions. hello there and team thanks for taking my questions

Speaker 4: Hey, Heiko. Nice to hear from you. Hey, Heiko. hey heiko Nice to hear from you. nice to hear from you

Speaker 7: Hey, Terronera commercial production obviously was October 1st, you know, we'll be in March 1st here in the very near future, it's five months later. You want to just maybe provide the audience here with a little bit of color on how things went since then, maybe things that went better, things that went worse, any sort of bottlenecks in supply chains or at site, or just things that came a little bit different from your expectations? Again, not necessarily just worse, but also, I mean, I assume some things went substantially better than you thought. Hey, Terronera commercial production obviously was October 1st, you know, we'll be in March 1st here in the very near future, it's five months later. hey terronera commercial production obviously was october 1st you know we'll be in march 1st here in the very near future it's five months later You want to just maybe provide the audience here with a little bit of color on how things went since then, maybe things that went better, things that went worse, any sort of bottlenecks in supply chains or at site, or just things that came a little bit different from your expectations? you want to just maybe provide the audience here with a little bit of color on how things went since then maybe things that went better things that went worse any sort of bottlenecks in supply chains or at site or just things that came a little bit different from your expectations Again, not necessarily just worse, but also, I mean, I assume some things went substantially better than you thought. again not necessarily just worse but also i mean i assume some things went substantially better than you thought

Speaker 4: Do you mean over the course of the construction period, or just over operations of the last five months, Heiko? Do you mean over the course of the construction period, or just over operations of the last five months, Heiko? do you mean over the course of the construction period or just over operations of the last five months heiko

Speaker 7: Operations over the last 5 months. Operations over the last 5 months. operations over the last 5 months

Speaker 4: I mean, to be honest, I mean, it's our first time doing an initial build, our first mine that we brought into commercial production. Obviously, there's things that have gone extremely well, things that we wish could be better. I mean, I think it's normal through a ramp-up phase, that it's two steps forward, one step back. That's what through all of our past experiences and Don's experiences. There's things that we felt like we could improve on maybe from a initial startup and ramp-up, better knowledge almost of going to the initial plan. Everybody has different ideas, it's sticking to the original plan. From that, starting with the variables of trying different reagents at different times, putting various oxygens through it. Because of the terrain around Terronera, the topography at all, it's very mountainous. I mean, to be honest, I mean, it's our first time doing an initial build, our first mine that we brought into commercial production. i mean to be honest i mean it's our first time doing an initial build our first mine that we brought into commercial production Obviously, there's things that have gone extremely well, things that we wish could be better. obviously there's things that have gone extremely well things that we wish could be better I mean, I think it's normal through a ramp-up phase, that it's two steps forward, one step back. i mean i think it's normal through a ramp-up phase that it's two steps forward one step back That's what through all of our past experiences and Don's experiences. that's what through all of our past experiences and don's experiences There's things that we felt like we could improve on maybe from a initial startup and ramp-up, better knowledge almost of going to the initial plan. there's things that we felt like we could improve on maybe from a initial startup and ramp-up better knowledge almost of going to the initial plan Everybody has different ideas, it's sticking to the original plan. everybody has different ideas it's sticking to the original plan From that, starting with the variables of trying different reagents at different times, putting various oxygens through it. from that starting with the variables of trying different reagents at different times putting various oxygens through it Because of the terrain around Terronera, the topography at all, it's very mountainous. because of the terrain around terronera the topography at all it's very mountainous We don't have a lot of flexibility with laydown yards. We only have about 80,000 tons, even less than that right now, stockpile that sits near the plant. What comes out of the mine kinda gets fed right into the plant. We're continually learning about the ore body, trying to find what's best from a recovery standpoint. Again, January, February, we've seen very good throughput up until Sunday night. We obviously shut down for a couple days. Again, going forward, we expect that to be very good. And it's the gradual ramp-up of recoveries. We've been running lower silver or silver grades, as Wayne kind of pointed out, and those will improve through the year, and we expect recoveries to improve with that. We don't have a lot of flexibility with laydown yards. we don't have a lot of flexibility with laydown yards We only have about 80,000 tons, even less than that right now, stockpile that sits near the plant. we only have about 80,000 tons even less than that right now stockpile that sits near the plant What comes out of the mine kinda gets fed right into the plant. what comes out of the mine kinda gets fed right into the plant We're continually learning about the ore body, trying to find what's best from a recovery standpoint. we're continually learning about the ore body trying to find what's best from a recovery standpoint Again, January, February, we've seen very good throughput up until Sunday night. again january february we've seen very good throughput up until sunday night We obviously shut down for a couple days. we obviously shut down for a couple days Again, going forward, we expect that to be very good. again going forward we expect that to be very good And it's the gradual ramp-up of recoveries. and it's the gradual ramp-up of recoveries We've been running lower silver or silver grades, as Wayne kind of pointed out, and those will improve through the year, and we expect recoveries to improve with that. we've been running lower silver or silver grades as wayne kind of pointed out and those will improve through the year and we expect recoveries to improve with that I think our team's been phenomenal at finding flexible ideas using plans B and C to get to where we need to get to. Now we wanna get into the rhythm and kind of be steady state and get into normal course operations. We look forward to that. I think our team's been phenomenal at finding flexible ideas using plans B and C to get to where we need to get to. i think our team's been phenomenal at finding flexible ideas using plans b and c to get to where we need to get to Now we wanna get into the rhythm and kind of be steady state and get into normal course operations. now we wanna get into the rhythm and kind of be steady state and get into normal course operations We look forward to that. we look forward to that

Speaker 7: Fair enough. Just, like, I guess a little bit more touchy-feely, as silver is at $94 right now, I mean, assuming silver prices stay here or maybe even, you know, go up a little bit more, is there an impact, a quantifiable impact of where you mine across your asset base and what you, internally are envisioning on mining costs, like direct costs, for labor and longevity across your asset base? Fair enough. fair enough Just, like, I guess a little bit more touchy-feely, as silver is at $94 right now, I mean, assuming silver prices stay here or maybe even, you know, go up a little bit more, is there an impact, a quantifiable impact of where you mine across your asset base and what you, internally are envisioning on mining costs, like direct costs, for labor and longevity across your asset base? just like i guess a little bit more touchy-feely as silver is at $94 right now i mean assuming silver prices stay here or maybe even you know go up a little bit more is there an impact a quantifiable impact of where you mine across your asset base and what you internally are envisioning on mining costs like direct costs for labor and longevity across your asset base

Speaker 4: Yeah. I mean, that's a very big question. Yeah. yeah I mean, that's a very big question. i mean that's a very big question

Speaker 7: You hinted at some of that earlier. Sorry, go ahead. You hinted at some of that earlier. you hinted at some of that earlier Sorry, go ahead. sorry go ahead

Speaker 4: That's a very broad question of with $94, first off, it's a phenomenal environment, and we expect cash flows to be very significant. There's a big impact to us at Guanaceví because we pay a significant royalty at Guanaceví, 16% to Minera Frisco that owns the main concessions of that. Further with there, we toll ore. I think in Q4, we did close to 20% of our throughput was tolled ore. That's gonna continue. Obviously, there's a lot of family-run operations. The government built in 1981, that Guanaceví plant, and we're required to take up to 10%. Quite frankly, it extends the life of our mine. We get good margins on some of that tolled ore. It's just expensive to buy. That's a very broad question of with $94, first off, it's a phenomenal environment, and we expect cash flows to be very significant. that's a very broad question of with $94 first off it's a phenomenal environment and we expect cash flows to be very significant There's a big impact to us at Guanaceví because we pay a significant royalty at Guanaceví, 16% to Minera Frisco that owns the main concessions of that. there's a big impact to us at guanaceví because we pay a significant royalty at guanaceví 16% to minera frisco that owns the main concessions of that Further with there, we toll ore. further with there we toll ore I think in Q4, we did close to 20% of our throughput was tolled ore. i think in q4 we did close to 20% of our throughput was tolled ore That's gonna continue. that's gonna continue Obviously, there's a lot of family-run operations. obviously there's a lot of family-run operations The government built in 1981, that Guanaceví plant, and we're required to take up to 10%. the government built in 1981 that guanaceví plant and we're required to take up to 10% Quite frankly, it extends the life of our mine. quite frankly it extends the life of our mine We get good margins on some of that tolled ore. we get good margins on some of that tolled ore It's just expensive to buy. it's just expensive to buy Flip side of that, Special Mining Duty, which is an EBITDA tax, and that's included in our cost per ton and our direct cost per ton. With higher prices, and we kind of put this in our guidance news release, it's gonna drive our direct cost per ton in. Again, for our audience, we have a direct operating cost per ton, which is mining, milling, and our indirect costs. Our direct costs include royalties, duties, and purchased ore. Those last three items go up with higher prices. We still have great margins, but it means rising cost per ton. We get a lot of questions of why are costs rising. Flip side of that, Special Mining Duty, which is an EBITDA tax, and that's included in our cost per ton and our direct cost per ton. flip side of that special mining duty which is an ebitda tax and that's included in our cost per ton and our direct cost per ton With higher prices, and we kind of put this in our guidance news release, it's gonna drive our direct cost per ton in. with higher prices and we kind of put this in our guidance news release it's gonna drive our direct cost per ton in Again, for our audience, we have a direct operating cost per ton, which is mining, milling, and our indirect costs. again for our audience we have a direct operating cost per ton which is mining milling and our indirect costs Our direct costs include royalties, duties, and purchased ore. our direct costs include royalties duties and purchased ore Those last three items go up with higher prices. those last three items go up with higher prices We still have great margins, but it means rising cost per ton. we still have great margins but it means rising cost per ton We get a lot of questions of why are costs rising. we get a lot of questions of why are costs rising For the costs that we can control, we've been through our negotiations with our unions out of Mexico and our general increase is about 6%, which is a bit higher than our budgeted number of 5%. That was all included in guidance. Of course, we're gonna start seeing pressure on our inputs. I think that's just natural at these prices. It's our job as management to work through that. That's all included in our guidance numbers. I think it's imperative at Kolpa and Terronera, we have a lot smaller royalties there, so it's easier to contain those costs. Of course, as we evaluate projects going forward, we're looking at these higher prices and what's the impact long term on costs. For the costs that we can control, we've been through our negotiations with our unions out of Mexico and our general increase is about 6%, which is a bit higher than our budgeted number of 5%. for the costs that we can control we've been through our negotiations with our unions out of mexico and our general increase is about 6% which is a bit higher than our budgeted number of 5% That was all included in guidance. that was all included in guidance Of course, we're gonna start seeing pressure on our inputs. of course we're gonna start seeing pressure on our inputs I think that's just natural at these prices. i think that's just natural at these prices It's our job as management to work through that. it's our job as management to work through that That's all included in our guidance numbers. that's all included in our guidance numbers I think it's imperative at Kolpa and Terronera, we have a lot smaller royalties there, so it's easier to contain those costs. i think it's imperative at kolpa and terronera we have a lot smaller royalties there so it's easier to contain those costs Of course, as we evaluate projects going forward, we're looking at these higher prices and what's the impact long term on costs. of course as we evaluate projects going forward we're looking at these higher prices and what's the impact long term on costs I don't know if that fully answers your question, Heiko, but again, in our guidance news release, we kinda touch on that, in depth a bit. I don't know if that fully answers your question, Heiko, but again, in our guidance news release, we kinda touch on that, in depth a bit. i don't know if that fully answers your question heiko but again in our guidance news release we kinda touch on that in depth a bit

Speaker 7: Yeah. Yeah. No, you did. You got exactly where I wanted to go with this. Thank you very much. I'll get back in the queue. Have a good weekend. Yeah. yeah Yeah. yeah No, you did. no you did You got exactly where I wanted to go with this. you got exactly where i wanted to go with this Thank you very much. thank you very much I'll get back in the queue. i'll get back in the queue Have a good weekend. have a good weekend

Speaker 4: Thanks, Heiko. Very good question. Thanks, Heiko. thanks heiko Very good question. very good question

Speaker 8: The next question comes from Soundarya Iyer with B. Riley. Please go ahead. The next question comes from Soundarya Iyer with B. the next question comes from soundarya iyer with b Riley. riley Please go ahead. please go ahead

Speaker 9: Hi, team. Congratulations on the quarter. My question is more on this derivative hedge. I mean, there is good amount of detail in the MD&A, but, could you help me understand, you know, the remaining notional exposure and the cash settlement cadence over the next 12 months? What about the risk management strategy in order to manage this strength in precious metals? Hi, team. hi team Congratulations on the quarter. congratulations on the quarter My question is more on this derivative hedge. my question is more on this derivative hedge I mean, there is good amount of detail in the MD&A, but, could you help me understand, you know, the remaining notional exposure and the cash settlement cadence over the next 12 months? i mean there is good amount of detail in the md&a but could you help me understand you know the remaining notional exposure and the cash settlement cadence over the next 12 months What about the risk management strategy in order to manage this strength in precious metals? what about the risk management strategy in order to manage this strength in precious metals

Speaker 4: I'm happy to talk about that. I mean, it's an important part right now on our balance sheet that under the project loan facility that we borrowed to build the Terronera mine, we borrowed $135 million from two lenders. When we went into that facility agreement back in 2022, we were required to hedge 68,000 ounces of gold, and we locked that gold price in March of 2024 at $2,325. Today, or at December 31st, we had about 50,000 ounces of that gold hedge remaining. That gold hedge is gonna unwind through 2026 and into 2027. I think we're through it in Q2 of 2027. Ultimately, on our balance sheet, you can see that we do a mark-to-market adjustment that holds that difference. I'm happy to talk about that. i'm happy to talk about that I mean, it's an important part right now on our balance sheet that under the project loan facility that we borrowed to build the Terronera mine, we borrowed $135 million from two lenders. i mean it's an important part right now on our balance sheet that under the project loan facility that we borrowed to build the terronera mine we borrowed $135 million from two lenders When we went into that facility agreement back in 2022, we were required to hedge 68,000 ounces of gold, and we locked that gold price in March of 2024 at $2,325. when we went into that facility agreement back in 2022 we were required to hedge 68,000 ounces of gold and we locked that gold price in march of 2024 at $2,325 Today, or at December 31st, we had about 50,000 ounces of that gold hedge remaining. today or at december 31st we had about 50,000 ounces of that gold hedge remaining That gold hedge is gonna unwind through 2026 and into 2027. that gold hedge is gonna unwind through 2026 and into 2027 I think we're through it in Q2 of 2027. i think we're through it in q2 of 2027 Ultimately, on our balance sheet, you can see that we do a mark-to-market adjustment that holds that difference. ultimately on our balance sheet you can see that we do a mark-to-market adjustment that holds that difference That liability sits on our balance sheet. We recognize that loss on that derivative liability through the income statement in the year. A very significant amount, and we try to adjust it for adjusted earnings purposes. Again, we, as a company, have a policy that we would not like to hedge our silver. We have a small hedge in place from a collar, again from that project loan facility. We have a policy to try to remain unhedged. Of course, from a silver standpoint, if you're making an investment in a silver company, you believe silver price likely going higher. We wanna give that upside, and we feel like there's a lot of upside there in silver. We hedge the gold, which was a by-product, and again, we're through that mid 2027. That liability sits on our balance sheet. that liability sits on our balance sheet We recognize that loss on that derivative liability through the income statement in the year. we recognize that loss on that derivative liability through the income statement in the year A very significant amount, and we try to adjust it for adjusted earnings purposes. a very significant amount and we try to adjust it for adjusted earnings purposes Again, we, as a company, have a policy that we would not like to hedge our silver. again we as a company have a policy that we would not like to hedge our silver We have a small hedge in place from a collar, again from that project loan facility. we have a small hedge in place from a collar again from that project loan facility We have a policy to try to remain unhedged. we have a policy to try to remain unhedged Of course, from a silver standpoint, if you're making an investment in a silver company, you believe silver price likely going higher. of course from a silver standpoint if you're making an investment in a silver company you believe silver price likely going higher We wanna give that upside, and we feel like there's a lot of upside there in silver. we wanna give that upside and we feel like there's a lot of upside there in silver We hedge the gold, which was a by-product, and again, we're through that mid 2027. we hedge the gold which was a by-product and again we're through that mid 2027

Speaker 9: Thank you, Dan, for all that color. Just one more on this Mexican peso appreciation, which was again a headwind on the costs this year, right? Any hedging or risk management strategy to, you know, cover that for 2026? Is there any sensitivity at, you know, what exchange rate does this currency, you know, start to impact meaningfully, margins or costs? Thank you, Dan, for all that color. thank you dan for all that color Just one more on this Mexican peso appreciation, which was again a headwind on the costs this year, right? just one more on this mexican peso appreciation which was again a headwind on the costs this year right Any hedging or risk management strategy to, you know, cover that for 2026? any hedging or risk management strategy to you know cover that for 2026 Is there any sensitivity at, you know, what exchange rate does this currency, you know, start to impact meaningfully, margins or costs? is there any sensitivity at you know what exchange rate does this currency you know start to impact meaningfully margins or costs

Speaker 6: Hi, Soundarya, this is Elizabeth. I'll take that question on the foreign exchange. As you see, we do have some Mexican peso hedges in place. I believe at the end of 2025, there were around 19 peso to the dollar remaining. We don't have very many left, and with lower prices, we haven't put many on recently. It's hard to hedge at 17 peso to the U.S. dollar. We are taking opportunities to hedge where it is appropriate for the Mexican peso. One of the advantages with adding Kolpa to our portfolio is that we have reduced our percentage exposure to the peso as well. The Peruvian sol is more steady for us. We do have that diversification as well. Hi, Soundarya, this is Elizabeth. hi soundarya this is elizabeth I'll take that question on the foreign exchange. i'll take that question on the foreign exchange As you see, we do have some Mexican peso hedges in place. as you see we do have some mexican peso hedges in place I believe at the end of 2025, there were around 19 peso to the dollar remaining. i believe at the end of 2025 there were around 19 peso to the dollar remaining We don't have very many left, and with lower prices, we haven't put many on recently. we don't have very many left and with lower prices we haven't put many on recently It's hard to hedge at 17 peso to the U.S. dollar. it's hard to hedge at 17 peso to the u.s dollar We are taking opportunities to hedge where it is appropriate for the Mexican peso. we are taking opportunities to hedge where it is appropriate for the mexican peso One of the advantages with adding Kolpa to our portfolio is that we have reduced our percentage exposure to the peso as well. one of the advantages with adding kolpa to our portfolio is that we have reduced our percentage exposure to the peso as well The Peruvian sol is more steady for us. the peruvian sol is more steady for us We do have that diversification as well. we do have that diversification as well

Speaker 9: Thank you, Allison. I'll get back into the queue. Thank you, Allison. thank you allison I'll get back into the queue. i'll get back into the queue

Speaker 4: Thanks for the question, Soundarya Iyer. Thanks for the question, Soundarya Iyer. thanks for the question soundarya iyer

Speaker 8: The next question comes from Cosmos Chiu with CIBC. Please go ahead. The next question comes from Cosmos Chiu with CIBC. the next question comes from cosmos chiu with cibc Please go ahead. please go ahead

Speaker 3: Hi. Thanks, Dan and team. Maybe my first question is, sorry, also on Terronera, but just I'm trying to kind of quantify it. You know, Terronera costs were fairly high in Q4, $50, $65, $70 an ounce. You know, Dan, you've talked about one-time costs, LNG plants and stuff. In 2026, you're guiding to $28-$29. I'm just trying to understand, you know, how it can drop in 2026. Is it gonna be more back-end weighted? You're gonna have some quarters that might be over $29, some quarters below $29 an ounce? If you have another quarter of $65, it'd be hard to average out to $28-$29 for the full year. Hi. hi Thanks, Dan and team. thanks dan and team Maybe my first question is, sorry, also on Terronera, but just I'm trying to kind of quantify it. maybe my first question is sorry also on terronera but just i'm trying to kind of quantify it You know, Terronera costs were fairly high in Q4, $50, $65, $70 an ounce. you know terronera costs were fairly high in q4 $50 $65 $70 an ounce You know, Dan, you've talked about one-time costs, LNG plants and stuff. you know dan you've talked about one-time costs lng plants and stuff In 2026, you're guiding to $28-$29. in 2026 you're guiding to $28-$29 I'm just trying to understand, you know, how it can drop in 2026. i'm just trying to understand you know how it can drop in 2026 Is it gonna be more back-end weighted? is it gonna be more back-end weighted You're gonna have some quarters that might be over $29, some quarters below $29 an ounce? you're gonna have some quarters that might be over $29 some quarters below $29 an ounce If you have another quarter of $65, it'd be hard to average out to $28-$29 for the full year. if you have another quarter of $65 it'd be hard to average out to $28-$29 for the full year

Speaker 4: Well, the good news is 65 was in Q4 of 2025. Well, the good news is 65 was in Q4 of 2025. well the good news is 65 was in q4 of 2025

Speaker 3: Exactly. Exactly. exactly

Speaker 4: Our guidance is only for 2026. We don't expect Q1 to be as elevated as it was in Q4. We've got some severance costs of moving off from various construction people in January, but we do expect that cost to decrease over the year. Q1 will be higher than Q2. Q2 will be higher than Q3. Q3 and Q4, we have higher grades coming in. On a per ounce basis, that cost per ton or that cost per ounce is gonna improve. The cost per ton won't become as drastic. I would point out that Q4 has the one-time expenditures of $16 million. Not necessarily one time, CapEx expense of $16 million-$17 million. In Q4, that includes one-time initial CapEx that flowed into Q4. We have that in Q1. We'll have less of that in Q2. Our guidance is only for 2026. our guidance is only for 2026 We don't expect Q1 to be as elevated as it was in Q4. we don't expect q1 to be as elevated as it was in q4 We've got some severance costs of moving off from various construction people in January, but we do expect that cost to decrease over the year. we've got some severance costs of moving off from various construction people in january but we do expect that cost to decrease over the year Q1 will be higher than Q2. q1 will be higher than q2 Q2 will be higher than Q3. q2 will be higher than q3 Q3 and Q4, we have higher grades coming in. q3 and q4 we have higher grades coming in On a per ounce basis, that cost per ton or that cost per ounce is gonna improve. on a per ounce basis that cost per ton or that cost per ounce is gonna improve The cost per ton won't become as drastic. the cost per ton won't become as drastic I would point out that Q4 has the one-time expenditures of $16 million. i would point out that q4 has the one-time expenditures of $16 million Not necessarily one time, CapEx expense of $16 million-$17 million. not necessarily one time capex expense of $16 million-$17 million In Q4, that includes one-time initial CapEx that flowed into Q4. in q4 that includes one-time initial capex that flowed into q4 We have that in Q1. we have that in q1 We'll have less of that in Q2. we'll have less of that in q2 Q3, Q4, we should get pretty flattened out sustaining CapEx. That is gonna be the biggest driver of our cost per ounce increase at All-in sustaining costs. Q3, Q4, we should get pretty flattened out sustaining CapEx. q3 q4 we should get pretty flattened out sustaining capex That is gonna be the biggest driver of our cost per ounce increase at All-in sustaining costs. that is gonna be the biggest driver of our cost per ounce increase at all-in sustaining costs

Speaker 3: Yes. Yes. yes

Speaker 4: Similarly, our cost per ton, as we get more rhythm at site, we expect that to come in. We move from the temporary diesel gen sets to the LNG plant. That's cost improvement. There's a number of things that are gonna come through cost that are gonna come through the year. We've been saying out to the market and to analysts, "Look, Q1's our first quarter production, it's not indicative of what the future is gonna hold at Terronera." Again, we expect Q1 to be better, we expect Q2 to be better than Q1, and I think that's gonna come through. Similarly, our cost per ton, as we get more rhythm at site, we expect that to come in. similarly our cost per ton as we get more rhythm at site we expect that to come in We move from the temporary diesel gen sets to the LNG plant. we move from the temporary diesel gen sets to the lng plant That's cost improvement. that's cost improvement There's a number of things that are gonna come through cost that are gonna come through the year. there's a number of things that are gonna come through cost that are gonna come through the year We've been saying out to the market and to analysts, "Look, Q1's our first quarter production, it's not indicative of what the future is gonna hold at Terronera." Again, we expect Q1 to be better, we expect Q2 to be better than Q1, and I think that's gonna come through. we've been saying out to the market and to analysts "look q1's our first quarter production it's not indicative of what the future is gonna hold at terronera." again we expect q1 to be better we expect q2 to be better than q1 and i think that's gonna come through

Speaker 3: Great. Thanks. Maybe, you know, broader scale, can we talk a bit about Mexico, Jalisco? You know, certainly, some volatility in the area. Has it, you know, resulted or necessitated any change in security protocols on site at Terronera? Has it necessitated any kinda changes to systems in place, you know, to make sure that it's kinda, you know, in response to the situation? Then on top of that, can you talk about supplies on site, you know, consumables on site? You know, have you stocked up in light of what's happening in terms of fuel, in terms of consumables, in terms of spare parts? How should we look at it? Great. great Thanks. thanks Maybe, you know, broader scale, can we talk a bit about Mexico, Jalisco? maybe you know broader scale can we talk a bit about mexico jalisco You know, certainly, some volatility in the area. you know certainly some volatility in the area Has it, you know, resulted or necessitated any change in security protocols on site at Terronera? has it you know resulted or necessitated any change in security protocols on site at terronera Has it necessitated any kinda changes to systems in place, you know, to make sure that it's kinda, you know, in response to the situation? has it necessitated any kinda changes to systems in place you know to make sure that it's kinda you know in response to the situation Then on top of that, can you talk about supplies on site, you know, consumables on site? then on top of that can you talk about supplies on site you know consumables on site You know, have you stocked up in light of what's happening in terms of fuel, in terms of consumables, in terms of spare parts? you know have you stocked up in light of what's happening in terms of fuel in terms of consumables in terms of spare parts How should we look at it? how should we look at it

Speaker 4: No, it was a very fair question, considering what we saw this past week. Obviously unexpected. I think that was something we've never experienced in Mexico. Our biggest concern, obviously, first and foremost, is for our people and with Jalisco going to Code Red, shutting down Sunday night. The major thing about coming back from an operations is the supply lines out of Puerto Vallarta up to site. We're about an hour and 15, an hour and a half drive from Puerto Vallarta to site. Because of the topography of Terronera, we don't have a lot of storage space. We have about one week's supply of food for the camp, two to three days supply of water. We had a delivery of water on Monday that helped. Obviously, we're very concerned about diesel, and transporting that. No, it was a very fair question, considering what we saw this past week. no it was a very fair question considering what we saw this past week Obviously unexpected. obviously unexpected I think that was something we've never experienced in Mexico. i think that was something we've never experienced in mexico Our biggest concern, obviously, first and foremost, is for our people and with Jalisco going to Code Red, shutting down Sunday night. our biggest concern obviously first and foremost is for our people and with jalisco going to code red shutting down sunday night The major thing about coming back from an operations is the supply lines out of Puerto Vallarta up to site. the major thing about coming back from an operations is the supply lines out of puerto vallarta up to site We're about an hour and 15, an hour and a half drive from Puerto Vallarta to site. we're about an hour and 15, an hour and a half drive from puerto vallarta to site Because of the topography of Terronera, we don't have a lot of storage space. because of the topography of terronera we don't have a lot of storage space We have about one week's supply of food for the camp, two to three days supply of water. we have about one week's supply of food for the camp two to three days supply of water We had a delivery of water on Monday that helped. we had a delivery of water on monday that helped Obviously, we're very concerned about diesel, and transporting that. obviously we're very concerned about diesel and transporting that Going forward, I don't suspect we'll change our security around the Terronera mine. It will continue as is. We have to look at our protocols on shipments. Shipments coming up, shipments coming out, our concentrate shipments. We already have security protocols around all the shipments going out. Some of the shipments coming up, I think we'll just have to look at that, maybe beef it up a little bit. We don't expect a dramatic increase in security costs at this time. Of course, we have to monitor what this impact will have across the region if there becomes instability with all these groups in Mexico. As of right now, we don't have a huge change, just an increase of presence around our transportation lines. Going forward, I don't suspect we'll change our security around the Terronera mine. going forward i don't suspect we'll change our security around the terronera mine It will continue as is. it will continue as is We have to look at our protocols on shipments. we have to look at our protocols on shipments Shipments coming up, shipments coming out, our concentrate shipments. shipments coming up shipments coming out our concentrate shipments We already have security protocols around all the shipments going out. we already have security protocols around all the shipments going out Some of the shipments coming up, I think we'll just have to look at that, maybe beef it up a little bit. some of the shipments coming up i think we'll just have to look at that maybe beef it up a little bit We don't expect a dramatic increase in security costs at this time. we don't expect a dramatic increase in security costs at this time Of course, we have to monitor what this impact will have across the region if there becomes instability with all these groups in Mexico. of course we have to monitor what this impact will have across the region if there becomes instability with all these groups in mexico As of right now, we don't have a huge change, just an increase of presence around our transportation lines. as of right now we don't have a huge change just an increase of presence around our transportation lines

Speaker 3: Mm-hmm. Great. Then maybe one last question, more of an accounting question here. With Bolanitos, the sale closing in Q1, is there any kinda accounting nuances or impact that we should be aware of for Q1? Is there gonna be some type of one-time gain or loss? Then can you talk about Mexican taxes as well? My understanding is that, you know, Mexico, cash taxes are higher on the first half or even in Q1. Is that what's happening here? You know, with the Terronera construction costs, the CapEx, does that help you offset some of those Mexican taxes? Mm-hmm. mm-hmm Great. great Then maybe one last question, more of an accounting question here. then maybe one last question more of an accounting question here With Bolanitos, the sale closing in Q1, is there any kinda accounting nuances or impact that we should be aware of for Q1? with bolanitos the sale closing in q1 is there any kinda accounting nuances or impact that we should be aware of for q1 Is there gonna be some type of one-time gain or loss? is there gonna be some type of one-time gain or loss Then can you talk about Mexican taxes as well? then can you talk about mexican taxes as well My understanding is that, you know, Mexico, cash taxes are higher on the first half or even in Q1. my understanding is that you know mexico cash taxes are higher on the first half or even in q1 Is that what's happening here? is that what's happening here You know, with the Terronera construction costs, the CapEx, does that help you offset some of those Mexican taxes? you know with the terronera construction costs the capex does that help you offset some of those mexican taxes

Speaker 4: Yeah. Hold on. Can we just clarify your second question about Bolanitos taxes? You said something around timing of end of the year versus... Yeah. yeah Hold on. hold on Can we just clarify your second question about Bolanitos taxes? can we just clarify your second question about bolanitos taxes You said something around timing of end of the year versus... you said something around timing of end of the year versus

Speaker 3: Oh, yeah, overall. Yeah, overall, just more like Guanaceví. Sorry. I guess, number one, Bolanitos, the deal is closing or closed in Q1. Is there any accounting sort of nuances or entries or impact that we should be aware of? Oh, yeah, overall. oh yeah overall Yeah, overall, just more like Guanaceví. yeah overall just more like guanaceví Sorry. sorry I guess, number one, Bolanitos, the deal is closing or closed in Q1. i guess number one bolanitos the deal is closing or closed in q1 Is there any accounting sort of nuances or entries or impact that we should be aware of? is there any accounting sort of nuances or entries or impact that we should be aware of

Speaker 6: Yeah. Yeah. yeah

Speaker 3: Second part is just, you know, overall Mexico taxes, how we should look at it in terms of quarterly. Sorry, Elizabeth. Second part is just, you know, overall Mexico taxes, how we should look at it in terms of quarterly. second part is just you know overall mexico taxes how we should look at it in terms of quarterly Sorry, Elizabeth. sorry elizabeth

Speaker 6: Yeah, this is Elizabeth Soralis. I'll take that question. Yes, the Bolanitos sale closed January 15. And we will be recognizing that during our Q1 financials, obviously. And we are anticipating, as you saw, we sold it for approximately $50 million. For accounting, there's different adjustments to that, depending on the value of the shares that we acquired as a result. And then we were carrying it for around $25 million at the end of the year. We are anticipating an accounting gain on that in Q1. And that math can be done using our year-end financial statements. Your question about Mexico taxes. Guanaceví is paying Mexico taxes and pays installments regularly on those Mexico income profit taxes there. Yeah, this is Elizabeth Soralis. yeah this is elizabeth soralis I'll take that question. i'll take that question Yes, the Bolanitos sale closed January 15. yes the bolanitos sale closed january 15 And we will be recognizing that during our Q1 financials, obviously. and we will be recognizing that during our q1 financials obviously And we are anticipating, as you saw, we sold it for approximately $50 million. and we are anticipating as you saw we sold it for approximately $50 million For accounting, there's different adjustments to that, depending on the value of the shares that we acquired as a result. for accounting there's different adjustments to that depending on the value of the shares that we acquired as a result And then we were carrying it for around $25 million at the end of the year. and then we were carrying it for around $25 million at the end of the year We are anticipating an accounting gain on that in Q1. we are anticipating an accounting gain on that in q1 And that math can be done using our year-end financial statements. and that math can be done using our year-end financial statements Your question about Mexico taxes. your question about mexico taxes Guanaceví is paying Mexico taxes and pays installments regularly on those Mexico income profit taxes there. guanaceví is paying mexico taxes and pays installments regularly on those mexico income profit taxes there Terronera, as you commented, does have construction costs, which are recognized as tax losses. As it starts to make taxable profits, those losses will offset those taxable profits during 2026. Depending on how the silver price goes, drives how quickly those losses will be utilized, when we will start paying income taxes in cash in Mexico for Terronera. Terronera, as you commented, does have construction costs, which are recognized as tax losses. terronera as you commented does have construction costs which are recognized as tax losses As it starts to make taxable profits, those losses will offset those taxable profits during 2026. as it starts to make taxable profits those losses will offset those taxable profits during 2026 Depending on how the silver price goes, drives how quickly those losses will be utilized, when we will start paying income taxes in cash in Mexico for Terronera. depending on how the silver price goes drives how quickly those losses will be utilized when we will start paying income taxes in cash in mexico for terronera

Speaker 3: Great. There's no big true up in Mexico, Mexican cash taxes in the first half of 2026, where I see that somewhere else in other companies, but I guess not here. Great. great There's no big true up in Mexico, Mexican cash taxes in the first half of 2026, where I see that somewhere else in other companies, but I guess not here. there's no big true up in mexico mexican cash taxes in the first half of 2026 where i see that somewhere else in other companies but i guess not here

Speaker 4: No. On our sale of Bolanitos, we have historical losses that are designed or we can use that we won't have to pay a tax on our Bolanitos debt. No. no On our sale of Bolanitos, we have historical losses that are designed or we can use that we won't have to pay a tax on our Bolanitos debt. on our sale of bolanitos we have historical losses that are designed or we can use that we won't have to pay a tax on our bolanitos debt

Speaker 6: At this point. That's our anticipation, yeah. At this point. at this point That's our anticipation, yeah. that's our anticipation yeah

Speaker 3: Great. Great. Thanks, Dan, Elizabeth. Those are all the questions I have. Thanks a lot. Great. great Great. great Thanks, Dan, Elizabeth. thanks dan elizabeth Those are all the questions I have. those are all the questions i have Thanks a lot. thanks a lot

Speaker 4: Thanks, Oz. Good questions. Thanks, Oz. thanks oz Good questions. good questions

Speaker 8: The next question comes from Alex Terentiew with National Bank. Please go ahead. The next question comes from Alex Terentiew with National Bank. the next question comes from alex terentiew with national bank Please go ahead. please go ahead

Speaker 1: Hey, guys. Thanks for taking my questions. I guess I was a bit slow with my fingers. A lot of questions already asked. Nonetheless, one question still for me here on Kolpa. Can you just clarify for me then, as it comes to that mine with permitting and getting 2,500, are you waiting for additional permits? Cause I thought 2,500 is kind of the ultimate expansion rate that you wanna get at. Based on your commentary guides, it sounds like you're gonna get there a lot sooner. Just wanted to make sure I'm clear on the expectations there. Hey, guys. hey guys Thanks for taking my questions. thanks for taking my questions I guess I was a bit slow with my fingers. i guess i was a bit slow with my fingers A lot of questions already asked. a lot of questions already asked Nonetheless, one question still for me here on Kolpa. nonetheless one question still for me here on kolpa Can you just clarify for me then, as it comes to that mine with permitting and getting 2,500, are you waiting for additional permits? can you just clarify for me then as it comes to that mine with permitting and getting 2,500 are you waiting for additional permits Cause I thought 2,500 is kind of the ultimate expansion rate that you wanna get at. cause i thought 2,500 is kind of the ultimate expansion rate that you wanna get at Based on your commentary guides, it sounds like you're gonna get there a lot sooner. based on your commentary guides it sounds like you're gonna get there a lot sooner Just wanted to make sure I'm clear on the expectations there. just wanted to make sure i'm clear on the expectations there

Speaker 4: Yeah. We are getting there a lot sooner. I think it's a testament to the team that we acquired when we bought Kolpa. They're very confident people. In December, they received the construction permit to build out the Kolpa plant, which is really a expansion, the crushing facility, new crusher, ball mill to go to 2,500, then there's some additional flotation cells that need to be done. It, of course, expanding the mine underground. They received that construction permit. They're almost through that. We expect to be testing the ball mill relatively shortly, so let's say March. In our guidance, we did have 2,400 tons throughput for the average for the year. We've been running just over 2,300 over the last couple weeks. Yeah. yeah We are getting there a lot sooner. we are getting there a lot sooner I think it's a testament to the team that we acquired when we bought Kolpa. i think it's a testament to the team that we acquired when we bought kolpa They're very confident people. they're very confident people In December, they received the construction permit to build out the Kolpa plant, which is really a expansion, the crushing facility, new crusher, ball mill to go to 2,500, then there's some additional flotation cells that need to be done. in december they received the construction permit to build out the kolpa plant which is really a expansion the crushing facility new crusher ball mill to go to 2,500 then there's some additional flotation cells that need to be done It, of course, expanding the mine underground. it of course expanding the mine underground They received that construction permit. they received that construction permit They're almost through that. they're almost through that We expect to be testing the ball mill relatively shortly, so let's say March. we expect to be testing the ball mill relatively shortly so let's say march In our guidance, we did have 2,400 tons throughput for the average for the year. in our guidance we did have 2,400 tons throughput for the average for the year We've been running just over 2,300 over the last couple weeks. we've been running just over 2,300 over the last couple weeks There has been a lot of rain in that area, and we've battling how much rain there's been here in Q1, so it slowed us down a little bit from a production standpoint. The construction standpoint, like I say, we've been very impressed with how it's gone. From the construction standpoint, we can operate it, but we do have to get an operating permit, which generally comes a month to two months, maybe three months after the construction phase is done. We are allowed to test that circuit and go through that. Again, hopefully in Q2, we're approaching 2,500. The underground mine will be running around 2,300 tons per day. As we've talked about before, with the underground mine, it's opening up more faces, more employees, staff. There has been a lot of rain in that area, and we've battling how much rain there's been here in Q1, so it slowed us down a little bit from a production standpoint. there has been a lot of rain in that area and we've battling how much rain there's been here in q1 so it slowed us down a little bit from a production standpoint The construction standpoint, like I say, we've been very impressed with how it's gone. the construction standpoint like i say we've been very impressed with how it's gone From the construction standpoint, we can operate it, but we do have to get an operating permit, which generally comes a month to two months, maybe three months after the construction phase is done. from the construction standpoint we can operate it but we do have to get an operating permit which generally comes a month to two months maybe three months after the construction phase is done We are allowed to test that circuit and go through that. we are allowed to test that circuit and go through that Again, hopefully in Q2, we're approaching 2,500. again hopefully in q2 we're approaching 2,500 The underground mine will be running around 2,300 tons per day. the underground mine will be running around 2,300 tons per day As we've talked about before, with the underground mine, it's opening up more faces, more employees, staff. as we've talked about before with the underground mine it's opening up more faces more employees staff You're not gonna get a lot of economies of scale from the underground portion of it. The additional tons for the first half of the year will come from a lower grade pit that's within the area, and we'll try to fill that with some contractor ore as well. We are ahead upon the above ground surface. There's still some work to be done underground, we are in very good shape right now. You're not gonna get a lot of economies of scale from the underground portion of it. you're not gonna get a lot of economies of scale from the underground portion of it The additional tons for the first half of the year will come from a lower grade pit that's within the area, and we'll try to fill that with some contractor ore as well. the additional tons for the first half of the year will come from a lower grade pit that's within the area and we'll try to fill that with some contractor ore as well We are ahead upon the above ground surface. we are ahead upon the above ground surface There's still some work to be done underground, we are in very good shape right now. there's still some work to be done underground we are in very good shape right now

Speaker 1: Okay. Great to hear. Just one last question on Pitarrilla. A lot's happening there this year. Can you remind me of permitting timelines or kind of, you know, what you're doing to advance that this year and what news we maybe could expect, whether it's later this year or early next year on the permitting for that project? Okay. okay Great to hear. great to hear Just one last question on Pitarrilla. just one last question on pitarrilla A lot's happening there this year. a lot's happening there this year Can you remind me of permitting timelines or kind of, you know, what you're doing to advance that this year and what news we maybe could expect, whether it's later this year or early next year on the permitting for that project? can you remind me of permitting timelines or kind of you know what you're doing to advance that this year and what news we maybe could expect whether it's later this year or early next year on the permitting for that project

Speaker 4: Yeah. I'll give a quick overview, and I might pass it over to Donald Gray, our COO. I mean, obviously we're spending $68 million at Pitarrilla. We really believe in the project. We like everything we've seen thus far. What makes Pitarrilla kinda special is the volumes that you can get out in such a tight space. There's a manto that's got 7 to 8 million tons of what would be ore once that feasibility study is complete, and then three feeder structures that come up and through it. We've been working on a mine plan, and that mine plan's gonna dictate the scale of the plant. Now, the plant has already been permitted. Underground mining's already been permitted. We're waiting on a tailings storage facility permit. It's gonna be a dry stack tailings. We've been working on the site. Yeah. yeah I'll give a quick overview, and I might pass it over to Donald Gray, our COO. i'll give a quick overview and i might pass it over to donald gray our coo I mean, obviously we're spending $68 million at Pitarrilla. i mean obviously we're spending $68 million at pitarrilla We really believe in the project. we really believe in the project We like everything we've seen thus far. we like everything we've seen thus far What makes Pitarrilla kinda special is the volumes that you can get out in such a tight space. what makes pitarrilla kinda special is the volumes that you can get out in such a tight space There's a manto that's got 7 to 8 million tons of what would be ore once that feasibility study is complete, and then three feeder structures that come up and through it. there's a manto that's got 7 to 8 million tons of what would be ore once that feasibility study is complete and then three feeder structures that come up and through it We've been working on a mine plan, and that mine plan's gonna dictate the scale of the plant. we've been working on a mine plan and that mine plan's gonna dictate the scale of the plant Now, the plant has already been permitted. now the plant has already been permitted Underground mining's already been permitted. underground mining's already been permitted We're waiting on a tailings storage facility permit. we're waiting on a tailings storage facility permit It's gonna be a dry stack tailings. it's gonna be a dry stack tailings We've been working on the site. we've been working on the site We've been working on the engineering. We've been going back and forth with the state level SEMARNAT on how to submit this and how to submit it most efficiently. I think right now our projection is that we're aiming for a Q1 2027 permit to receive that tailings storage facility permit. Beyond that, there's additional permitting that's required, such as CFE for power, but that's something that we can work through during our construction timeline, as we did with Terronera. Of course, we'll need temporary power source during the construction. It's a question of when we can bring on power sources at the end of that. Don, I don't know if we wanna get in too much more detail of it, but there's a lot of permits that we've gone after. We've been working on the engineering. we've been working on the engineering We've been going back and forth with the state level SEMARNAT on how to submit this and how to submit it most efficiently. we've been going back and forth with the state level semarnat on how to submit this and how to submit it most efficiently I think right now our projection is that we're aiming for a Q1 2027 permit to receive that tailings storage facility permit. i think right now our projection is that we're aiming for a q1 2027 permit to receive that tailings storage facility permit Beyond that, there's additional permitting that's required, such as CFE for power, but that's something that we can work through during our construction timeline, as we did with Terronera. beyond that there's additional permitting that's required such as cfe for power but that's something that we can work through during our construction timeline as we did with terronera Of course, we'll need temporary power source during the construction. of course we'll need temporary power source during the construction It's a question of when we can bring on power sources at the end of that. it's a question of when we can bring on power sources at the end of that Don, I don't know if we wanna get in too much more detail of it, but there's a lot of permits that we've gone after. don i don't know if we wanna get in too much more detail of it but there's a lot of permits that we've gone after We've spent the past 12 months working on that permit to make sure we're getting ahead of where we effectively were when we started building Terronera. Don, do you have any color you wanna add? We've spent the past 12 months working on that permit to make sure we're getting ahead of where we effectively were when we started building Terronera. we've spent the past 12 months working on that permit to make sure we're getting ahead of where we effectively were when we started building terronera Don, do you have any color you wanna add? don do you have any color you wanna add

Speaker 5: Just that I think the permitting schedule really lines up well with the, with the project work that we need to do to finish the feasibility, get into the basic engineering, get the, like we mentioned in the press release, the long lead items or the major pieces of equipment on order so we can do the detail engineering and then head into construction. I think what you'll see is the engineering will be quite advanced by the time we go into construction, and we'll have a good idea on where the costs are and that kind of thing. Just that I think the permitting schedule really lines up well with the, with the project work that we need to do to finish the feasibility, get into the basic engineering, get the, like we mentioned in the press release, the long lead items or the major pieces of equipment on order so we can do the detail engineering and then head into construction. just that i think the permitting schedule really lines up well with the with the project work that we need to do to finish the feasibility get into the basic engineering get the like we mentioned in the press release the long lead items or the major pieces of equipment on order so we can do the detail engineering and then head into construction I think what you'll see is the engineering will be quite advanced by the time we go into construction, and we'll have a good idea on where the costs are and that kind of thing. i think what you'll see is the engineering will be quite advanced by the time we go into construction and we'll have a good idea on where the costs are and that kind of thing

Speaker 4: I think the main gating item we're gonna get at Pitarrilla from a construction standpoint is that last permit. We'll be in very good shape, we feel, when we can get that permit. I think the main gating item we're gonna get at Pitarrilla from a construction standpoint is that last permit. i think the main gating item we're gonna get at pitarrilla from a construction standpoint is that last permit We'll be in very good shape, we feel, when we can get that permit. we'll be in very good shape we feel when we can get that permit

Speaker 1: Great. Thanks for your time. Great. great Thanks for your time. thanks for your time

Speaker 4: Thanks for the questions, Alex. Much appreciated. Thanks for the questions, Alex. thanks for the questions alex Much appreciated. much appreciated

Speaker 8: This concludes the question and answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks. Please go ahead. This concludes the question and answer session. this concludes the question and answer session I would like to turn the conference back over to Dan Dickson for any closing remarks. i would like to turn the conference back over to dan dickson for any closing remarks Please go ahead. please go ahead

Speaker 4: Well, thank you, operator, and thanks everyone for attending our Q4 financial earnings call. Again, 2026 will be a big year for Endeavour. We're excited with what we can do with Terronera and getting that operation into a steady state, full rhythm by midyear. What Kolpa is gonna do for us and ultimately advancing Pitarrilla to take us to where we need to go, and that's, again, our goal to become a premier senior silver producer. Thanks a lot and have a good day. Well, thank you, operator, and thanks everyone for attending our Q4 financial earnings call. well thank you operator and thanks everyone for attending our q4 financial earnings call Again, 2026 will be a big year for Endeavour. again 2026 will be a big year for endeavour We're excited with what we can do with Terronera and getting that operation into a steady state, full rhythm by midyear. we're excited with what we can do with terronera and getting that operation into a steady state full rhythm by midyear What Kolpa is gonna do for us and ultimately advancing Pitarrilla to take us to where we need to go, and that's, again, our goal to become a premier senior silver producer. what kolpa is gonna do for us and ultimately advancing pitarrilla to take us to where we need to go and that's again our goal to become a premier senior silver producer Thanks a lot and have a good day. thanks a lot and have a good day

Speaker 8: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day. This brings to an end today's conference call. this brings to an end today's conference call You may disconnect your lines. you may disconnect your lines Thank you for participating, and have a pleasant day. thank you for participating and have a pleasant day