PAN AMERICAN SILVER CORP — Call Transcript 2026

I'll just do a quick intro call. We are going to kick off the Pan American Silver session. Pan American Silver is a world-leading silver producer, providing enhanced exposure to silver with a diversified portfolio of assets, large reserves, and growing production. Today, we're joined by President and CEO, Michael Steinmann. Thank you. Thanks, and good afternoon, everyone. Always a pleasure to be here. Normally, it's, you know, the nice, warm day out there. It's colder here than in Vancouver, looks like, but I'm sure the sun will come back. Great to give you an update on Pan American Silver. A lot has changed, over the last, over the last year, of course, and I'll-- let me just step in there and show you on the, on the plan. Of course, I will use forward-looking statements in my presentation, and, we can spend some time here on the map. At the moment, 10 producing asset, all across the Americas, that's really our... There's two reasons for that. One of it is the main one, that's where the silver is. I know there are some silver assets other places in the world, but the big silver projects are all in the Cordillera, and that's where we are. We have a few assets further to the east, Jacobina and Timmins are there, and they're obviously producing no silver, they're producing only gold. They came to us through different transactions. But with Mexico being the biggest silver producer, Peru right now, I think, 3 in the world, of course, our activity is focused really, really on the silver side, active in 8 different countries. And the second reason why we are there is because that's the places we know. I think it's incredibly important that you're very aware where you're working. I'm working all my career in Latin America. I lived and worked there for about 37 years. I think it's incredibly important when you look at places that have a bit of higher political risk than others, that you really know where you are and where you're working. Very comfortable with all the jurisdictions I present here. A few interesting changes, as Matt said, we acquired MAG Silver last year. I will call that just in time. Metal price started running literally after we closed the deal in September, and you can imagine that that transaction, which was a great transaction, actually, at $22-$24 silver, that's what we used for the analysis. I think when we agreed on the transaction, silver was somewhere in the low $30s. Of course, it's a great transaction at $85 silver. You've seen there, some, some numbers in our full year, numbers in the circle. I will show a few on the quarter, where you see the really big impact of, of, Juanicipio on, on, on, on that slide. It's not only what you see there, but it's really what's coming after, right? I mean, we all look at growth, and we already have it there, and we have it internal. I'm sure Matt and I will have a bit time to talk about La Colorada skarn later on, which is one of our biggest development project that will add a lot of silver for a very long time to our production profile. La Colorada skarn gonna be one of this very, very hard to find, you know, 40, 50-year mine life project, and very, very hard to find, especially on the, on the silver side. I won't go into details, it's quite small to see on Juanicipio, but you just see the green dot there, make it very clear, Juanicipio is, at the moment, one of the best or the best silver-producing asset globally on the planet, especially when you look at the cost. It actually brought the cost down corporate-wide for us quite a bit, and I have a slide showing you that. Great year in 2025, provided all the data that we promised we will do, and actually had even lower costs than what we guided, especially on the silver side. Great combination and, I'm just thinking, I think that's a better slide to show you, and I love that slide. You see here the last, what is it? eight or nine quarters coming back, and you see on your left side, silver, on your right side, gold, and the bars show the average metal price achieved for the quarter, and the green bar shows the average cost, all-in sustaining cost, either for the silver segment or the gold segment. You see this huge margin increase. Let's first talk a little bit about the gold. It's a bit easier to explain. You see quite flat costs over really a long time. Of course, they're increasing. Of course, we're seeing some, cost inflation on, on our side, you know, 5, 5, 6, 7%, depending on what good or service you're looking at. Remarkably flat when you compare actually the strong increase in the gold price and that really big margin increase. When you look at the silver side, it's even more, more so there. Of course, last quarter, with the big run on silver, finally, we were all waiting for, and it was really timid for a long time, and as silver normally does, it pops, and it goes on a really high, well, not that high, actually. $58 silver price was the average for the quarter. Right now, we're sitting at what? $85-$87, and a way higher average for Q1, so buckle up for Q1 when the result comes out. You see our cost actually declining on the silver side, and that's the last two quarters. The biggest decline, the biggest reason for that is really the addition of the Juanicipio mine to our portfolio. Great addition. When you have a combination of an increase of, even this year, again, 14% production on the silver side, at the highest silver prices and at lower prices than the years before, very, very happy to see that, of course. You know, something that the market has been very critical in the past, where we saw the runs, I'm doing this for a long time, where we saw the runs in metal prices... Suddenly the costs would just cross over, and the whole run was over. This time it's very, very different, and I'm really happy to show this big margin expansions. I think with that, I'll just leave a few numbers there, I'm sure it will be more interesting to, to go through some questions. A very strong Q4. As you can imagine, we generated over $550 million of free cash flow just in one quarter. Again, keep in mind that gold is about $900-$1,000 higher, and the silver price over $25, probably higher in average than what we saw in Q4. Really looking forward to the Q1 numbers. With that, I'm happy to answer your questions. Thank you. Okay, so, also with your results early this year, you, you put out your guidance, and production's a bit weighted to back half of the year. Right. -this year. Can you just talk through some of the key drivers of the ramp-up in, in production over the course of 2026? What are the biggest risks to achieving guidance this year? Yeah, right. Look, it happens every year. If you look, Q4 was by far our strongest quarter. It's really mostly related to the weather in South America with our open pits, depending on the rainy season. There's not much we can do. There is a seasonality to our production profile. We have more and more underground operation, of course, and the addition of Juanicipio with a big underground production as well, so it's not that prominent anymore. When you look. We, for that reason, actually put the quarterly guidance in our MD&A, just to avoid that people just divide the production by 4. You're gonna, you know, you're gonna, you're gonna outguide really your, as an analyst, where you think we're gonna be for the first two months, and then, we will outperform on the second two month of the year always. Not much we can do. Well, having, having less open pits in the future, more underground, which I think the mining industry will mostly go, you know, that will be 10-20 years from now, then the seasonality obviously won't be an issue anymore. How are you feeling on the cost front? You know, we've seen a little bit of cost creep in the sector. How much of that is structural versus temporary? In particular, I know in the Pan American profile, there's, there's some more development tons in the mine plans. How do you think about the cost progression? One part of the cost is what, what we all see, right? There is clear inflation out there, and that's with a big push really on, on inflation on food costs. You can imagine if that happens, we're gonna see a big push on our wages. That's, that's really what we see flowing through right now. We assume probably about an average of 8% increase or so on our wage costs. That will depend a little bit if it's open pit. Our, our, our labor costs are probably around 30%-32%. In an underground mine, it's probably more like 40%-43%. The 8% will translate in anything like 3%-4.5% cost increase across a certain operation. Definitely, that's what we're gonna see. I think we can't avoid that. As I said, you go out and do your grocery, you, you notice that, the whole world notice that, it's very prominent in Latin America. On top of that, we see increase in diesel fuel cost. The more we are underground, this is all electrified, most of it, so... We work in the Andes, so most of it is hydro, so that's very low cost power. Of course, we see it translated into explosive cost increase from the diesel cost increase. That's another kind of a driver for higher cost. We also see lower costs, like cyanide costs are lower, grinding media is lower, so steel balls, et cetera. It's kind of a bit of give and take. Just one thing, of course, there's two big drivers that are out of our hands really on the cost. One is by-product metal prices. Silver does not occur on its own, so you find it together with gold, or you find it with copper, lead, and zinc. We never show equivalent ounces. I can't sell an equivalent ounce of silver, so we use those by-products to reduce our cost as a by-product credit, and obviously, the higher those prices are, the lower are our cost for the silver and vice versa, so it's kind of out of our control. The last important one are exchange rates. Good one on the exchange rate, though, obviously, with a weaker dollar, we're gonna have higher local currencies, which will push our cost up, but a weaker dollar means higher gold and silver prices, which is what we see right now, and, you know, I'd, I'd rather show a little bit higher cost and a big margin to the gold and silver price than the other way around. on the CapEx front, I mean, maybe we can take it from the angle of the organic growth opportunities in the company. You, you know, you did increase the, the project CapEx spend this year, so maybe you can take us through just some of the near-term initiatives there. Sure, when you look at the total capital number, the number is actually remarkably similar to last year, just with the addition of Juanicipio. Of course, we add another great mine, and there's some sustaining capital there. The other increase that we showed is all in, in, in project capital. The biggest one will be La Colorada skarn. Amazing change really over the years on that project, and maybe I'd go a little bit into detail on, on that. La Colorada is our biggest silver producer, makes about just a bit north of 6 million ounces a year. Narrow structures, veins, 2-3 meters wide, high up, and we explored deeper down, and in 2018, actually hit the first discovery hole, which hit about 370 meter wide ore body. It's a skarn ore body mineralization below the, the main mine. You know, we drilled probably about 450,000 meters since then, have a resource of about 450 million tons. Depending on the metal price, and obviously depending on the mining method, that, that can grow all the way to about 600 or 700 million tons. It's one of the biggest base metal and biggest zinc discovery on the planet right now, with a very big silver credit to it. That's why it's so large. The initial idea was to mine that with a, with a caving method and go very big, 50,000 tons, if you recall, and put the PEA out there a number of years ago. It was a big capital number, close to $3 billion. We always tried to find a way to actually mine the high-grade part of it first, and then go to the big cave. We couldn't find, for a long time, enough high grade, but then the last two and a half years have been very successful in discovering new structures higher up, some wider replacement ore bodies as well, with, you know, grades up to, up to multi-kilo of silver. Now really have a chance to integrate the current mine plan and the skarn together for a phase one high-grade version of the skarn. Just keep in mind, this is gonna be quite a while that we mine in phase one. I would guess anywhere between 15-20 years at least, that will be phase one. Really depends a bit on, you know, the metal prices and how long you wanna push out that big zinc ore body later on, that no doubt has to be a, a block caving at one point. Phase one, great project, a lot of silver coming out. It's gonna be somewhere in the 10,000-15,000 ton production profile per day. You can imagine it's gonna increase substantially the silver production from La Colorada, it's also gonna be way less than the original $3 billion capital. Great start for that project. Stay tuned, we will put out an updated PEA in Q2 this year. It's only maybe a couple of months away to show you the results of that, of that study, and that will be, you know, our biggest, at the moment, biggest silver mine and biggest brownfield addition that we, that we have. Great timing with the silver price, and really looking forward to show the results and share them with everybody. That phase one, is it a selective mining approach, or could it be, you know, more bulk mining? It's gonna be very, very productive, but it's gonna be a long-hole, open stoping, at the moment. It's, you know, nothing new for us. It's the, it's our normal kind of bread and butter mining method that we apply. Then it will go, as I said, no doubt in maybe 25, 20 years, I don't know when that will happen, into a phase two, which will be a cave. When that change happen, really depends as much on the silver price as it does on the zinc price at that, at that point, right? If zinc will run earlier, maybe somebody wants to, wants to go, to that block caving later. If happens what I think will happen, that silver will outperform substantially over the coming decades here, then I think you can just stay in a selective method for way, way longer. As I thought, the resource really varies so much between the mining methods that you use, as I said, maybe from 400 million-420 million tons to more than 700 million tons, depending how selective you go. So I think it will just, you know, it will be an economic decision at that point when we're gonna go to a big cave, but that decision is pushed out quite a few decades here. Sounds like a really interesting project, so look forward to, learning more about it. What are you telling people about the capital intensity of it? Well, it's deep down, right? The skarn right now, we are mining all the way down to about 650 levels, that's 650 meters below surface. The skarn starts at about 750, we're gonna start an internal ramp to reach the top of the skarn. We'll start in a couple of months on work on that. The skarn goes all the way down to about 2,100 levels, it has a long, long way to the bottom. You can imagine if you want to build a block caving, you have to develop everything down. That's why, you know, it will cost about $3 billion or more to do that. At the moment, we're gonna access it with two shafts. There's gonna be a ventilation shaft, big, big shafts, and an extraction shaft, and this is an internal ramp to bring the equipment down there. I don't have the final number, but it, you know, it will be somewhere around maybe half than what the original idea was. There's still quite a big number in the sense we need to build those shafts and the ramps. You have to do that anyway for any of the mining method you apply, so that will be in place, but way, way less than the original $3 billion. Yeah. The other big catalyst that people are always aware of on Pan American is Escobal. Maybe we could get an update just on what steps remain in the ILO Convention 169 process. Yeah, you know, it has been a very slow process, but when I look by now, we are done with all the, you know, information exchange. We discussed all the details, we have all the reports and all the technical information, it's really down now to look how we would do this. This is a consultation with a, with an indigenous group. It's between the government and the indigenous group, not, not between us. We are obviously party to it. You know, for me, these high metal prices, I think, you know, hopefully will unlock this, because when you look at the, at the potential return to both, you know, the indigenous population and the government through any kind of participation that we still need to identify at this kind of prices are obviously staggering. You look at a, you know, at least 22 million ounce a year producer at very low cost. When it was in production last time in 2018 or 2017, the cost was about $8 all-in cost. Of course, when you look forward to now, that would probably increase somewhere in, I don't know, maybe $13, $12, $13. Very productive, big mine with a 45-meter wide main structure. You know, it would make a really big change, not only for our production profile, but a very big change for Guatemala and its population. That really got kind of, you know, put on the map, I think, for a lot of people with these high metal prices that we're seeing right now. I really hope that, you know, the possibility to have a participation in this project, should bring it to a place where we could, where we could move forward with it. Do you kind of take that meeting by meeting, or, what are the milestones that we could see on it? Yeah, no, this is really meeting by meeting. I don't know when that will happen. I always said I can't give really a guidance. This is the big upside for Pan American. Keep in mind, when we purchased our resource, we really didn't pay for the asset. What happened was it was already shut down, you know, I couldn't ask the Pan Am shareholders to pay for a shut down asset. We issued a CVR, a contingent value right for that asset. If it comes back into production and is de-risked, we will exchange those for Pan Am shares. We would issue about 15 million Pan Am shares, it would be about less than a 4%, I call it dilution, but it's not really a dilution of Pan Am shares to increase our production by about 22 million ounces a year. A great place to be where you don't have a financial downside, but you have a really gigantic production upside. Absolutely. Maybe one on capital allocation. You finished 2025 with $1.3 billion in cash, over $1.3 billion. How are you balancing incremental asset investment needs versus shareholder returns? Yeah, look, I mean, number one, always, always has been for us, you have to spend the money on the exploration, right? You have to replace your reserves. Very, very important to spend your money on your sustaining capital. Of course, you can see even with all the project capital, we're not even making a dent in the current cash flow generation, so there's no debt to repay. We have about $800 million in debt in long-term bonds. The biggest one, $500 million, on it, due in 2031. The interest rate is 2.6% on that, no hurry to pay that back neither, which leaves us with the only bucket left, which is obviously return to shareholders. We just increased our dividend for the third time in three quarters, consecutive quarters, last week. We increased it by 29%. I think that each quarter before, we increased the dividend by about 15% or 16%. I'm, you know, very happy to make these returns to the shareholders. I think, just leaving it where it is, it would return about $350 million to shareholders in dividend. We have a share buyback program in place and, and buyback shares as well. As, as we heard before, there's obviously different tax realities in different places in the world for our shareholders. Some prefer share buyback, some prefer dividend. I like to, I like to do both, and there's obviously enough cash available to do that. You know, a very similar situation in the mining space that normally we never had that luxury, right? People talk about quite, quite relatively small dividends. Some people did some share buyback, and then, you know, they, they, they, they saw the cycle go away again, and then nobody would do anything. For me, it has been always very important to continue paying a dividend. We pay uninterrupted dividend since 2010. That's very important to us. I, I see it as part of our cost structure, really. That has to be possible to deliver something to our shareholders in the downturn as well. It's easy to do it now, but in the downturn as well, very important. For sure, the share buyback is an important tool as well. You will see the combination of the two, and if metal prices stay where they are or keep climbing, we will accelerate that return as well. Then just one on your asset portfolio. I think, there might be some interesting opportunities. You know, you've got a diverse group of assets. Do you think there's still, optimization potential in the portfolio? How are you feeling about the current mix? Definitely. I mean, look at Jacobina in Brazil. It's a 100% gold producer, but it's a great mine to have. Right now, we have a mine plan until, I think, 2053. We still add every year, 3-4 years of additional production, and we really look at now with different eyes at this asset. When we bought it, it was 8,000 ton a day underground operation. I think we are close to 9,000 permanent. I think there's a way for us to go to 10,000 tons a day, but I think there's a way to go way higher than that as well. There will need to make some investment there in the plant, make it more efficient, get a different extraction method. This is actually not an asset that goes deeper, but it's actually a very long asset. You have another problem, right? You don't have to take deep ramps, but you have to have a very efficient way to bring the ore to, to your mill. We're looking at conveying methods. At the moment, everything is done by trucks, and then we look at a dry stack tailings and a backfill option there. A lot of engineering going on right now, so this will take a number of years to get there, but I think there's so many years of resources ahead. For us at Jacobina, I really want to see what's the maximum we can bring that asset. At the moment, you know, it's a low cost, 200,000+ ounce a year gold producer, and, that's a great place to be, but I think we can do quite a bit better at Jacobina over time. I also saw a mention on your conference call on Timmins satellites. Yeah. Is there any other things in the portfolio that people may not be aware of that are interesting? Yeah, Timmins is an interesting one because, you know, when we bought it, it was kind of, you know, made a little bit of money, but not a lot. Obviously, gold was at $1,100 when we bought it. You can imagine that now it's a very attractive asset. Over the years, with the exploration, we found quite a few very interesting satellites that we, one we're gonna develop now, the other ones, we're gonna drill out in detail, and I think that's gonna add substantial value to Timmins. You know, really looking forward where we can bring that asset as well. It has been kind of there, you know, chugging along, and, and people didn't really pay a lot of attention to it, but I think there's way more upside to that anybody thinks right now. We are out of time, thank you very much, Michael. That was great. Thank you very much.

Speaker 1: I'll just do a quick intro call. We are going to kick off the Pan American Silver session. Pan American Silver is a world-leading silver producer, providing enhanced exposure to silver with a diversified portfolio of assets, large reserves, and growing production. Today, we're joined by President and CEO, Michael Steinmann. I'll just do a quick intro call. i'll just do a quick intro call We are going to kick off the Pan American Silver session. we are going to kick off the pan american silver session Pan American Silver is a world-leading silver producer, providing enhanced exposure to silver with a diversified portfolio of assets, large reserves, and growing production. pan american silver is a world-leading silver producer providing enhanced exposure to silver with a diversified portfolio of assets large reserves and growing production Today, we're joined by President and CEO, Michael Steinmann. today we're joined by president and ceo michael steinmann

Speaker 2: Thank you. Thanks, and good afternoon, everyone. Always a pleasure to be here. Normally, it's, you know, the nice, warm day out there. It's colder here than in Vancouver, looks like, but I'm sure the sun will come back. Great to give you an update on Pan American Silver. A lot has changed, over the last, over the last year, of course, and I'll-- let me just step in there and show you on the, on the plan. Of course, I will use forward-looking statements in my presentation, and, we can spend some time here on the map. At the moment, 10 producing asset, all across the Americas, that's really our... There's two reasons for that. One of it is the main one, that's where the silver is. Thank you. thank you Thanks, and good afternoon, everyone. thanks and good afternoon everyone Always a pleasure to be here. always a pleasure to be here Normally, it's, you know, the nice, warm day out there. normally it's you know the nice warm day out there It's colder here than in Vancouver, looks like, but I'm sure the sun will come back. it's colder here than in vancouver looks like but i'm sure the sun will come back Great to give you an update on Pan American Silver. great to give you an update on pan american silver A lot has changed, over the last, over the last year, of course, and I'll-- let me just step in there and show you on the, on the plan. a lot has changed over the last over the last year of course and i'll-- let me just step in there and show you on the on the plan Of course, I will use forward-looking statements in my presentation, and, we can spend some time here on the map. of course i will use forward-looking statements in my presentation and we can spend some time here on the map At the moment, 10 producing asset, all across the Americas, that's really our... at the moment 10 producing asset all across the americas that's really our There's two reasons for that. there's two reasons for that One of it is the main one, that's where the silver is. one of it is the main one that's where the silver is I know there are some silver assets other places in the world, but the big silver projects are all in the Cordillera, and that's where we are. We have a few assets further to the east, Jacobina and Timmins are there, and they're obviously producing no silver, they're producing only gold. They came to us through different transactions. But with Mexico being the biggest silver producer, Peru right now, I think, 3 in the world, of course, our activity is focused really, really on the silver side, active in 8 different countries. And the second reason why we are there is because that's the places we know. I think it's incredibly important that you're very aware where you're working. I'm working all my career in Latin America. I know there are some silver assets other places in the world, but the big silver projects are all in the Cordillera, and that's where we are. i know there are some silver assets other places in the world but the big silver projects are all in the cordillera and that's where we are We have a few assets further to the east, Jacobina and Timmins are there, and they're obviously producing no silver, they're producing only gold. we have a few assets further to the east jacobina and timmins are there and they're obviously producing no silver they're producing only gold They came to us through different transactions. they came to us through different transactions But with Mexico being the biggest silver producer, Peru right now, I think, 3 in the world, of course, our activity is focused really, really on the silver side, active in 8 different countries. but with mexico being the biggest silver producer peru right now i think 3 in the world of course our activity is focused really really on the silver side active in 8 different countries And the second reason why we are there is because that's the places we know. and the second reason why we are there is because that's the places we know I think it's incredibly important that you're very aware where you're working. i think it's incredibly important that you're very aware where you're working I'm working all my career in Latin America. i'm working all my career in latin america I lived and worked there for about 37 years. I think it's incredibly important when you look at places that have a bit of higher political risk than others, that you really know where you are and where you're working. Very comfortable with all the jurisdictions I present here. A few interesting changes, as Matt said, we acquired MAG Silver last year. I will call that just in time. Metal price started running literally after we closed the deal in September, and you can imagine that that transaction, which was a great transaction, actually, at $22-$24 silver, that's what we used for the analysis. I think when we agreed on the transaction, silver was somewhere in the low $30s. Of course, it's a great transaction at $85 silver. I lived and worked there for about 37 years. i lived and worked there for about 37 years I think it's incredibly important when you look at places that have a bit of higher political risk than others, that you really know where you are and where you're working. i think it's incredibly important when you look at places that have a bit of higher political risk than others that you really know where you are and where you're working Very comfortable with all the jurisdictions I present here. very comfortable with all the jurisdictions i present here A few interesting changes, as Matt said, we acquired MAG Silver last year. a few interesting changes as matt said we acquired mag silver last year I will call that just in time. i will call that just in time Metal price started running literally after we closed the deal in September, and you can imagine that that transaction, which was a great transaction, actually, at $22-$24 silver, that's what we used for the analysis. metal price started running literally after we closed the deal in september and you can imagine that that transaction which was a great transaction actually at $22-$24 silver that's what we used for the analysis I think when we agreed on the transaction, silver was somewhere in the low $30s. i think when we agreed on the transaction silver was somewhere in the low $30s Of course, it's a great transaction at $85 silver. of course it's a great transaction at $85 silver You've seen there, some, some numbers in our full year, numbers in the circle. I will show a few on the quarter, where you see the really big impact of, of, Juanicipio on, on, on, on that slide. It's not only what you see there, but it's really what's coming after, right? I mean, we all look at growth, and we already have it there, and we have it internal. I'm sure Matt and I will have a bit time to talk about La Colorada skarn later on, which is one of our biggest development project that will add a lot of silver for a very long time to our production profile. You've seen there, some, some numbers in our full year, numbers in the circle. you've seen there some some numbers in our full year numbers in the circle I will show a few on the quarter, where you see the really big impact of, of, Juanicipio on, on, on, on that slide. i will show a few on the quarter where you see the really big impact of of juanicipio on on on on that slide It's not only what you see there, but it's really what's coming after, right? it's not only what you see there but it's really what's coming after right I mean, we all look at growth, and we already have it there, and we have it internal. i mean we all look at growth and we already have it there and we have it internal I'm sure Matt and I will have a bit time to talk about La Colorada skarn later on, which is one of our biggest development project that will add a lot of silver for a very long time to our production profile. i'm sure matt and i will have a bit time to talk about la colorada skarn later on which is one of our biggest development project that will add a lot of silver for a very long time to our production profile La Colorada skarn gonna be one of this very, very hard to find, you know, 40, 50-year mine life project, and very, very hard to find, especially on the, on the silver side. I won't go into details, it's quite small to see on Juanicipio, but you just see the green dot there, make it very clear, Juanicipio is, at the moment, one of the best or the best silver-producing asset globally on the planet, especially when you look at the cost. It actually brought the cost down corporate-wide for us quite a bit, and I have a slide showing you that. Great year in 2025, provided all the data that we promised we will do, and actually had even lower costs than what we guided, especially on the silver side. La Colorada skarn gonna be one of this very, very hard to find, you know, 40, 50-year mine life project, and very, very hard to find, especially on the, on the silver side. la colorada skarn gonna be one of this very very hard to find you know 40 50-year mine life project and very very hard to find especially on the on the silver side I won't go into details, it's quite small to see on Juanicipio, but you just see the green dot there, make it very clear, Juanicipio is, at the moment, one of the best or the best silver-producing asset globally on the planet, especially when you look at the cost. i won't go into details it's quite small to see on juanicipio but you just see the green dot there make it very clear juanicipio is at the moment one of the best or the best silver-producing asset globally on the planet especially when you look at the cost It actually brought the cost down corporate-wide for us quite a bit, and I have a slide showing you that. it actually brought the cost down corporate-wide for us quite a bit and i have a slide showing you that Great year in 2025, provided all the data that we promised we will do, and actually had even lower costs than what we guided, especially on the silver side. great year in 2025 provided all the data that we promised we will do and actually had even lower costs than what we guided especially on the silver side Great combination and, I'm just thinking, I think that's a better slide to show you, and I love that slide. You see here the last, what is it? eight or nine quarters coming back, and you see on your left side, silver, on your right side, gold, and the bars show the average metal price achieved for the quarter, and the green bar shows the average cost, all-in sustaining cost, either for the silver segment or the gold segment. You see this huge margin increase. Let's first talk a little bit about the gold. It's a bit easier to explain. You see quite flat costs over really a long time. Of course, they're increasing. Great combination and, I'm just thinking, I think that's a better slide to show you, and I love that slide. great combination and i'm just thinking i think that's a better slide to show you and i love that slide You see here the last, what is it? eight or nine quarters coming back, and you see on your left side, silver, on your right side, gold, and the bars show the average metal price achieved for the quarter, and the green bar shows the average cost, all-in sustaining cost, either for the silver segment or the gold segment. you see here the last what is it eight or nine quarters coming back and you see on your left side silver on your right side gold and the bars show the average metal price achieved for the quarter and the green bar shows the average cost all-in sustaining cost either for the silver segment or the gold segment You see this huge margin increase. you see this huge margin increase Let's first talk a little bit about the gold. let's first talk a little bit about the gold It's a bit easier to explain. it's a bit easier to explain You see quite flat costs over really a long time. you see quite flat costs over really a long time Of course, they're increasing. of course they're increasing Of course, we're seeing some, cost inflation on, on our side, you know, 5, 5, 6, 7%, depending on what good or service you're looking at. Remarkably flat when you compare actually the strong increase in the gold price and that really big margin increase. When you look at the silver side, it's even more, more so there. Of course, last quarter, with the big run on silver, finally, we were all waiting for, and it was really timid for a long time, and as silver normally does, it pops, and it goes on a really high, well, not that high, actually. $58 silver price was the average for the quarter. Right now, we're sitting at what? $85-$87, and a way higher average for Q1, so buckle up for Q1 when the result comes out. Of course, we're seeing some, cost inflation on, on our side, you know, 5, 5, 6, 7%, depending on what good or service you're looking at. of course we're seeing some cost inflation on on our side you know 5 5 6 7% depending on what good or service you're looking at Remarkably flat when you compare actually the strong increase in the gold price and that really big margin increase. remarkably flat when you compare actually the strong increase in the gold price and that really big margin increase When you look at the silver side, it's even more, more so there. when you look at the silver side it's even more more so there Of course, last quarter, with the big run on silver, finally, we were all waiting for, and it was really timid for a long time, and as silver normally does, it pops, and it goes on a really high, well, not that high, actually. $58 silver price was the average for the quarter. of course last quarter with the big run on silver finally we were all waiting for and it was really timid for a long time and as silver normally does it pops and it goes on a really high well not that high actually $58 silver price was the average for the quarter Right now, we're sitting at what? $85-$87, and a way higher average for Q1, so buckle up for Q1 when the result comes out. right now we're sitting at what $85-$87 and a way higher average for q1 so buckle up for q1 when the result comes out You see our cost actually declining on the silver side, and that's the last two quarters. The biggest decline, the biggest reason for that is really the addition of the Juanicipio mine to our portfolio. Great addition. When you have a combination of an increase of, even this year, again, 14% production on the silver side, at the highest silver prices and at lower prices than the years before, very, very happy to see that, of course. You know, something that the market has been very critical in the past, where we saw the runs, I'm doing this for a long time, where we saw the runs in metal prices... Suddenly the costs would just cross over, and the whole run was over. This time it's very, very different, and I'm really happy to show this big margin expansions. You see our cost actually declining on the silver side, and that's the last two quarters. you see our cost actually declining on the silver side and that's the last two quarters The biggest decline, the biggest reason for that is really the addition of the Juanicipio mine to our portfolio. the biggest decline the biggest reason for that is really the addition of the juanicipio mine to our portfolio Great addition. great addition When you have a combination of an increase of, even this year, again, 14% production on the silver side, at the highest silver prices and at lower prices than the years before, very, very happy to see that, of course. when you have a combination of an increase of even this year again 14% production on the silver side at the highest silver prices and at lower prices than the years before very very happy to see that of course You know, something that the market has been very critical in the past, where we saw the runs, I'm doing this for a long time, where we saw the runs in metal prices... you know something that the market has been very critical in the past where we saw the runs i'm doing this for a long time where we saw the runs in metal prices Suddenly the costs would just cross over, and the whole run was over. suddenly the costs would just cross over and the whole run was over This time it's very, very different, and I'm really happy to show this big margin expansions. this time it's very very different and i'm really happy to show this big margin expansions I think with that, I'll just leave a few numbers there, I'm sure it will be more interesting to, to go through some questions. A very strong Q4. As you can imagine, we generated over $550 million of free cash flow just in one quarter. Again, keep in mind that gold is about $900-$1,000 higher, and the silver price over $25, probably higher in average than what we saw in Q4. Really looking forward to the Q1 numbers. With that, I'm happy to answer your questions. I think with that, I'll just leave a few numbers there, I'm sure it will be more interesting to, to go through some questions. i think with that i'll just leave a few numbers there i'm sure it will be more interesting to to go through some questions A very strong Q4. a very strong q4 As you can imagine, we generated over $550 million of free cash flow just in one quarter. as you can imagine we generated over $550 million of free cash flow just in one quarter Again, keep in mind that gold is about $900-$1,000 higher, and the silver price over $25, probably higher in average than what we saw in Q4. again keep in mind that gold is about $900-$1,000 higher and the silver price over $25 probably higher in average than what we saw in q4 Really looking forward to the Q1 numbers. really looking forward to the q1 numbers With that, I'm happy to answer your questions. with that i'm happy to answer your questions

Speaker 1: Thank you. Okay, so, also with your results early this year, you, you put out your guidance, and production's a bit weighted to back half of the year. Thank you. thank you Okay, so, also with your results early this year, you, you put out your guidance, and production's a bit weighted to back half of the year. okay so also with your results early this year you you put out your guidance and production's a bit weighted to back half of the year

Speaker 2: Right. Right. right

Speaker 1: -this year. Can you just talk through some of the key drivers of the ramp-up in, in production over the course of 2026? What are the biggest risks to achieving guidance this year? -this year. -this year Can you just talk through some of the key drivers of the ramp-up in, in production over the course of 2026? can you just talk through some of the key drivers of the ramp-up in in production over the course of 2026 What are the biggest risks to achieving guidance this year? what are the biggest risks to achieving guidance this year

Speaker 2: Yeah, right. Look, it happens every year. If you look, Q4 was by far our strongest quarter. It's really mostly related to the weather in South America with our open pits, depending on the rainy season. There's not much we can do. There is a seasonality to our production profile. We have more and more underground operation, of course, and the addition of Juanicipio with a big underground production as well, so it's not that prominent anymore. When you look. We, for that reason, actually put the quarterly guidance in our MD&A, just to avoid that people just divide the production by 4. You're gonna, you know, you're gonna, you're gonna outguide really your, as an analyst, where you think we're gonna be for the first two months, and then, we will outperform on the second two month of the year always. Yeah, right. yeah right Look, it happens every year. look it happens every year If you look, Q4 was by far our strongest quarter. if you look q4 was by far our strongest quarter It's really mostly related to the weather in South America with our open pits, depending on the rainy season. it's really mostly related to the weather in south america with our open pits depending on the rainy season There's not much we can do. there's not much we can do There is a seasonality to our production profile. there is a seasonality to our production profile We have more and more underground operation, of course, and the addition of Juanicipio with a big underground production as well, so it's not that prominent anymore. we have more and more underground operation of course and the addition of juanicipio with a big underground production as well so it's not that prominent anymore When you look. when you look We, for that reason, actually put the quarterly guidance in our MD&A, just to avoid that people just divide the production by 4. we for that reason actually put the quarterly guidance in our md&a just to avoid that people just divide the production by 4 You're gonna, you know, you're gonna, you're gonna outguide really your, as an analyst, where you think we're gonna be for the first two months, and then, we will outperform on the second two month of the year always. you're gonna you know you're gonna you're gonna outguide really your as an analyst where you think we're gonna be for the first two months and then we will outperform on the second two month of the year always Not much we can do. Well, having, having less open pits in the future, more underground, which I think the mining industry will mostly go, you know, that will be 10-20 years from now, then the seasonality obviously won't be an issue anymore. Not much we can do. not much we can do Well, having, having less open pits in the future, more underground, which I think the mining industry will mostly go, you know, that will be 10-20 years from now, then the seasonality obviously won't be an issue anymore. well having having less open pits in the future more underground which i think the mining industry will mostly go you know that will be 10-20 years from now then the seasonality obviously won't be an issue anymore

Speaker 1: How are you feeling on the cost front? You know, we've seen a little bit of cost creep in the sector. How much of that is structural versus temporary? In particular, I know in the Pan American profile, there's, there's some more development tons in the mine plans. How do you think about the cost progression? How are you feeling on the cost front? how are you feeling on the cost front You know, we've seen a little bit of cost creep in the sector. you know we've seen a little bit of cost creep in the sector How much of that is structural versus temporary? how much of that is structural versus temporary In particular, I know in the Pan American profile, there's, there's some more development tons in the mine plans. in particular i know in the pan american profile there's there's some more development tons in the mine plans How do you think about the cost progression? how do you think about the cost progression

Speaker 2: One part of the cost is what, what we all see, right? There is clear inflation out there, and that's with a big push really on, on inflation on food costs. You can imagine if that happens, we're gonna see a big push on our wages. That's, that's really what we see flowing through right now. We assume probably about an average of 8% increase or so on our wage costs. That will depend a little bit if it's open pit. Our, our, our labor costs are probably around 30%-32%. In an underground mine, it's probably more like 40%-43%. The 8% will translate in anything like 3%-4.5% cost increase across a certain operation. Definitely, that's what we're gonna see. One part of the cost is what, what we all see, right? one part of the cost is what what we all see right There is clear inflation out there, and that's with a big push really on, on inflation on food costs. there is clear inflation out there and that's with a big push really on on inflation on food costs You can imagine if that happens, we're gonna see a big push on our wages. you can imagine if that happens we're gonna see a big push on our wages That's, that's really what we see flowing through right now. that's that's really what we see flowing through right now We assume probably about an average of 8% increase or so on our wage costs. we assume probably about an average of 8% increase or so on our wage costs That will depend a little bit if it's open pit. that will depend a little bit if it's open pit Our, our, our labor costs are probably around 30%-32%. our our our labor costs are probably around 30%-32% In an underground mine, it's probably more like 40%-43%. in an underground mine it's probably more like 40%-43% The 8% will translate in anything like 3%-4.5% cost increase across a certain operation. the 8% will translate in anything like 3%-4.5% cost increase across a certain operation Definitely, that's what we're gonna see. definitely that's what we're gonna see I think we can't avoid that. As I said, you go out and do your grocery, you, you notice that, the whole world notice that, it's very prominent in Latin America. On top of that, we see increase in diesel fuel cost. The more we are underground, this is all electrified, most of it, so... We work in the Andes, so most of it is hydro, so that's very low cost power. Of course, we see it translated into explosive cost increase from the diesel cost increase. That's another kind of a driver for higher cost. We also see lower costs, like cyanide costs are lower, grinding media is lower, so steel balls, et cetera. It's kind of a bit of give and take. I think we can't avoid that. i think we can't avoid that As I said, you go out and do your grocery, you, you notice that, the whole world notice that, it's very prominent in Latin America. as i said you go out and do your grocery you you notice that the whole world notice that it's very prominent in latin america On top of that, we see increase in diesel fuel cost. on top of that we see increase in diesel fuel cost The more we are underground, this is all electrified, most of it, so... the more we are underground this is all electrified most of it so We work in the Andes, so most of it is hydro, so that's very low cost power. we work in the andes so most of it is hydro so that's very low cost power Of course, we see it translated into explosive cost increase from the diesel cost increase. of course we see it translated into explosive cost increase from the diesel cost increase That's another kind of a driver for higher cost. that's another kind of a driver for higher cost We also see lower costs, like cyanide costs are lower, grinding media is lower, so steel balls, et cetera. we also see lower costs like cyanide costs are lower grinding media is lower so steel balls et cetera It's kind of a bit of give and take. it's kind of a bit of give and take Just one thing, of course, there's two big drivers that are out of our hands really on the cost. One is by-product metal prices. Silver does not occur on its own, so you find it together with gold, or you find it with copper, lead, and zinc. We never show equivalent ounces. I can't sell an equivalent ounce of silver, so we use those by-products to reduce our cost as a by-product credit, and obviously, the higher those prices are, the lower are our cost for the silver and vice versa, so it's kind of out of our control. The last important one are exchange rates. Just one thing, of course, there's two big drivers that are out of our hands really on the cost. just one thing of course there's two big drivers that are out of our hands really on the cost One is by-product metal prices. one is by-product metal prices Silver does not occur on its own, so you find it together with gold, or you find it with copper, lead, and zinc. silver does not occur on its own so you find it together with gold or you find it with copper lead and zinc We never show equivalent ounces. we never show equivalent ounces I can't sell an equivalent ounce of silver, so we use those by-products to reduce our cost as a by-product credit, and obviously, the higher those prices are, the lower are our cost for the silver and vice versa, so it's kind of out of our control. i can't sell an equivalent ounce of silver so we use those by-products to reduce our cost as a by-product credit and obviously the higher those prices are the lower are our cost for the silver and vice versa so it's kind of out of our control The last important one are exchange rates. the last important one are exchange rates Good one on the exchange rate, though, obviously, with a weaker dollar, we're gonna have higher local currencies, which will push our cost up, but a weaker dollar means higher gold and silver prices, which is what we see right now, and, you know, I'd, I'd rather show a little bit higher cost and a big margin to the gold and silver price than the other way around. Good one on the exchange rate, though, obviously, with a weaker dollar, we're gonna have higher local currencies, which will push our cost up, but a weaker dollar means higher gold and silver prices, which is what we see right now, and, you know, I'd, I'd rather show a little bit higher cost and a big margin to the gold and silver price than the other way around. good one on the exchange rate though obviously with a weaker dollar we're gonna have higher local currencies which will push our cost up but a weaker dollar means higher gold and silver prices which is what we see right now and you know i'd i'd rather show a little bit higher cost and a big margin to the gold and silver price than the other way around

Speaker 1: on the CapEx front, I mean, maybe we can take it from the angle of the organic growth opportunities in the company. You, you know, you did increase the, the project CapEx spend this year, so maybe you can take us through just some of the near-term initiatives there. on the CapEx front, I mean, maybe we can take it from the angle of the organic growth opportunities in the company. on the capex front i mean maybe we can take it from the angle of the organic growth opportunities in the company You, you know, you did increase the, the project CapEx spend this year, so maybe you can take us through just some of the near-term initiatives there. you you know you did increase the the project capex spend this year so maybe you can take us through just some of the near-term initiatives there

Speaker 2: Sure, when you look at the total capital number, the number is actually remarkably similar to last year, just with the addition of Juanicipio. Of course, we add another great mine, and there's some sustaining capital there. The other increase that we showed is all in, in, in project capital. The biggest one will be La Colorada skarn. Amazing change really over the years on that project, and maybe I'd go a little bit into detail on, on that. La Colorada is our biggest silver producer, makes about just a bit north of 6 million ounces a year. Narrow structures, veins, 2-3 meters wide, high up, and we explored deeper down, and in 2018, actually hit the first discovery hole, which hit about 370 meter wide ore body. Sure, when you look at the total capital number, the number is actually remarkably similar to last year, just with the addition of Juanicipio. sure when you look at the total capital number the number is actually remarkably similar to last year just with the addition of juanicipio Of course, we add another great mine, and there's some sustaining capital there. of course we add another great mine and there's some sustaining capital there The other increase that we showed is all in, in, in project capital. the other increase that we showed is all in in in project capital the The biggest one will be La Colorada skarn. the biggest one will be la colorada skarn Amazing change really over the years on that project, and maybe I'd go a little bit into detail on, on that. amazing change really over the years on that project and maybe i'd go a little bit into detail on on that La Colorada is our biggest silver producer, makes about just a bit north of 6 million ounces a year. la colorada is our biggest silver producer makes about just a bit north of 6 million ounces a year Narrow structures, veins, 2 - 3 meters wide, high up, and we explored deeper down, and in 2018, actually hit the first discovery hole, which hit about 370 meter wide ore body. narrow structures veins 2 - 3 meters wide high up and we explored deeper down and in 2018 actually hit the first discovery hole which hit about 370 meter wide ore body It's a skarn ore body mineralization below the, the main mine. You know, we drilled probably about 450,000 meters since then, have a resource of about 450 million tons. Depending on the metal price, and obviously depending on the mining method, that, that can grow all the way to about 600 or 700 million tons. It's one of the biggest base metal and biggest zinc discovery on the planet right now, with a very big silver credit to it. That's why it's so large. The initial idea was to mine that with a, with a caving method and go very big, 50,000 tons, if you recall, and put the PEA out there a number of years ago. It was a big capital number, close to $3 billion. It's a skarn ore body mineralization below the, the main mine. it's a skarn ore body mineralization below the the main mine You know, we drilled probably about 450,000 meters since then, have a resource of about 450 million tons. you know we drilled probably about 450,000 meters since then have a resource of about 450 million tons Depending on the metal price, and obviously depending on the mining method, that, that can grow all the way to about 600 or 700 million tons. depending on the metal price and obviously depending on the mining method that that can grow all the way to about 600 or 700 million tons It's one of the biggest base metal and biggest zinc discovery on the planet right now, with a very big silver credit to it. it's one of the biggest base metal and biggest zinc discovery on the planet right now with a very big silver credit to it That's why it's so large. that's why it's so large The initial idea was to mine that with a, with a caving method and go very big, 50,000 tons, if you recall, and put the PEA out there a number of years ago. the initial idea was to mine that with a with a caving method and go very big 50,000 tons if you recall and put the pea out there a number of years ago It was a big capital number, close to $3 billion. it was a big capital number close to $3 billion We always tried to find a way to actually mine the high-grade part of it first, and then go to the big cave. We couldn't find, for a long time, enough high grade, but then the last two and a half years have been very successful in discovering new structures higher up, some wider replacement ore bodies as well, with, you know, grades up to, up to multi-kilo of silver. Now really have a chance to integrate the current mine plan and the skarn together for a phase one high-grade version of the skarn. Just keep in mind, this is gonna be quite a while that we mine in phase one. I would guess anywhere between 15-20 years at least, that will be phase one. We always tried to find a way to actually mine the high-grade part of it first, and then go to the big cave. we always tried to find a way to actually mine the high-grade part of it first and then go to the big cave We couldn't find, for a long time, enough high grade, but then the last two and a half years have been very successful in discovering new structures higher up, some wider replacement ore bodies as well, with, you know, grades up to, up to multi-kilo of silver. we couldn't find for a long time enough high grade but then the last two and a half years have been very successful in discovering new structures higher up some wider replacement ore bodies as well with you know grades up to up to multi-kilo of silver Now really have a chance to integrate the current mine plan and the skarn together for a phase one high-grade version of the skarn. now really have a chance to integrate the current mine plan and the skarn together for a phase one high-grade version of the skarn Just keep in mind, this is gonna be quite a while that we mine in phase one. just keep in mind this is gonna be quite a while that we mine in phase one I would guess anywhere between 15-20 years at least, that will be phase one. i would guess anywhere between 15-20 years at least that will be phase one Really depends a bit on, you know, the metal prices and how long you wanna push out that big zinc ore body later on, that no doubt has to be a, a block caving at one point. Phase one, great project, a lot of silver coming out. It's gonna be somewhere in the 10,000-15,000 ton production profile per day. You can imagine it's gonna increase substantially the silver production from La Colorada, it's also gonna be way less than the original $3 billion capital. Great start for that project. Really depends a bit on, you know, the metal prices and how long you wanna push out that big zinc ore body later on, that no doubt has to be a, a block caving at one point. really depends a bit on you know the metal prices and how long you wanna push out that big zinc ore body later on that no doubt has to be a a block caving at one point Phase one, great project, a lot of silver coming out. phase one great project a lot of silver coming out It's gonna be somewhere in the 10,000-15,000 ton production profile per day. it's gonna be somewhere in the 10,000-15,000 ton production profile per day You can imagine it's gonna increase substantially the silver production from La Colorada, it's also gonna be way less than the original $3 billion capital. you can imagine it's gonna increase substantially the silver production from la colorada it's also gonna be way less than the original $3 billion capital Great start for that project. great start for that project Stay tuned, we will put out an updated PEA in Q2 this year. It's only maybe a couple of months away to show you the results of that, of that study, and that will be, you know, our biggest, at the moment, biggest silver mine and biggest brownfield addition that we, that we have. Great timing with the silver price, and really looking forward to show the results and share them with everybody. Stay tuned, we will put out an updated PEA in Q2 this year. stay tuned we will put out an updated pea in q2 this year It's only maybe a couple of months away to show you the results of that, of that study, and that will be, you know, our biggest, at the moment, biggest silver mine and biggest brownfield addition that we, that we have. it's only maybe a couple of months away to show you the results of that of that study and that will be you know our biggest at the moment biggest silver mine and biggest brownfield addition that we that we have Great timing with the silver price, and really looking forward to show the results and share them with everybody. great timing with the silver price and really looking forward to show the results and share them with everybody

Speaker 1: That phase one, is it a selective mining approach, or could it be, you know, more bulk mining? That phase one, is it a selective mining approach, or could it be, you know, more bulk mining? that phase one is it a selective mining approach or could it be you know more bulk mining

Speaker 2: It's gonna be very, very productive, but it's gonna be a long-hole, open stoping, at the moment. It's, you know, nothing new for us. It's the, it's our normal kind of bread and butter mining method that we apply. Then it will go, as I said, no doubt in maybe 25, 20 years, I don't know when that will happen, into a phase two, which will be a cave. When that change happen, really depends as much on the silver price as it does on the zinc price at that, at that point, right? If zinc will run earlier, maybe somebody wants to, wants to go, to that block caving later. It's gonna be very, very productive, but it's gonna be a long-hole, open stoping, at the moment. it's gonna be very very productive but it's gonna be a long-hole open stoping at the moment It's, you know, nothing new for us. it's you know nothing new for us It's the, it's our normal kind of bread and butter mining method that we apply. it's the it's our normal kind of bread and butter mining method that we apply Then it will go, as I said, no doubt in maybe 25, 20 years, I don't know when that will happen, into a phase two, which will be a cave. then it will go as i said no doubt in maybe 25 20 years i don't know when that will happen into a phase two which will be a cave When that change happen, really depends as much on the silver price as it does on the zinc price at that, at that point, right? when that change happen really depends as much on the silver price as it does on the zinc price at that at that point right If zinc will run earlier, maybe somebody wants to, wants to go, to that block caving later. if zinc will run earlier maybe somebody wants to wants to go to that block caving later If happens what I think will happen, that silver will outperform substantially over the coming decades here, then I think you can just stay in a selective method for way, way longer. As I thought, the resource really varies so much between the mining methods that you use, as I said, maybe from 400 million-420 million tons to more than 700 million tons, depending how selective you go. So I think it will just, you know, it will be an economic decision at that point when we're gonna go to a big cave, but that decision is pushed out quite a few decades here. If happens what I think will happen, that silver will outperform substantially over the coming decades here, then I think you can just stay in a selective method for way, way longer. if happens what i think will happen that silver will outperform substantially over the coming decades here then i think you can just stay in a selective method for way way longer As I thought, the resource really varies so much between the mining methods that you use, as I said, maybe from 400 million-420 million tons to more than 700 million tons, depending how selective you go. as i thought the resource really varies so much between the mining methods that you use as i said maybe from 400 million-420 million tons to more than 700 million tons depending how selective you go So I think it will just, you know, it will be an economic decision at that point when we're gonna go to a big cave, but that decision is pushed out quite a few decades here. so i think it will just you know it will be an economic decision at that point when we're gonna go to a big cave but that decision is pushed out quite a few decades here

Speaker 1: Sounds like a really interesting project, so look forward to, learning more about it. What are you telling people about the capital intensity of it? Sounds like a really interesting project, so look forward to, learning more about it. sounds like a really interesting project so look forward to learning more about it What are you telling people about the capital intensity of it? what are you telling people about the capital intensity of it

Speaker 2: Well, it's deep down, right? The skarn right now, we are mining all the way down to about 650 levels, that's 650 meters below surface. The skarn starts at about 750, we're gonna start an internal ramp to reach the top of the skarn. We'll start in a couple of months on work on that. The skarn goes all the way down to about 2,100 levels, it has a long, long way to the bottom. You can imagine if you want to build a block caving, you have to develop everything down. That's why, you know, it will cost about $3 billion or more to do that. At the moment, we're gonna access it with two shafts. Well, it's deep down, right? well it's deep down right The skarn right now, we are mining all the way down to about 650 levels, that's 650 meters below surface. the skarn right now we are mining all the way down to about 650 levels that's 650 meters below surface The skarn starts at about 750, we're gonna start an internal ramp to reach the top of the skarn. the skarn starts at about 750 we're gonna start an internal ramp to reach the top of the skarn We'll start in a couple of months on work on that. we'll start in a couple of months on work on that The skarn goes all the way down to about 2,100 levels, it has a long, long way to the bottom. the skarn goes all the way down to about 2,100 levels it has a long long way to the bottom You can imagine if you want to build a block caving, you have to develop everything down. you can imagine if you want to build a block caving you have to develop everything down That's why, you know, it will cost about $3 billion or more to do that. that's why you know it will cost about $3 billion or more to do that At the moment, we're gonna access it with two shafts. at the moment we're gonna access it with two shafts There's gonna be a ventilation shaft, big, big shafts, and an extraction shaft, and this is an internal ramp to bring the equipment down there. I don't have the final number, but it, you know, it will be somewhere around maybe half than what the original idea was. There's still quite a big number in the sense we need to build those shafts and the ramps. You have to do that anyway for any of the mining method you apply, so that will be in place, but way, way less than the original $3 billion. Yeah. There's gonna be a ventilation shaft, big, big shafts, and an extraction shaft, and this is an internal ramp to bring the equipment down there. there's gonna be a ventilation shaft big big shafts and an extraction shaft and this is an internal ramp to bring the equipment down there I don't have the final number, but it, you know, it will be somewhere around maybe half than what the original idea was. i don't have the final number but it you know it will be somewhere around maybe half than what the original idea was There's still quite a big number in the sense we need to build those shafts and the ramps. there's still quite a big number in the sense we need to build those shafts and the ramps You have to do that anyway for any of the mining method you apply, so that will be in place, but way, way less than the original $3 billion. you have to do that anyway for any of the mining method you apply so that will be in place but way way less than the original $3 billion Yeah. yeah

Speaker 1: The other big catalyst that people are always aware of on Pan American is Escobal. Maybe we could get an update just on what steps remain in the ILO Convention 169 process. The other big catalyst that people are always aware of on Pan American is Escobal. the other big catalyst that people are always aware of on pan american is escobal Maybe we could get an update just on what steps remain in the ILO Convention 169 process. maybe we could get an update just on what steps remain in the ilo convention 169 process

Speaker 2: Yeah, you know, it has been a very slow process, but when I look by now, we are done with all the, you know, information exchange. We discussed all the details, we have all the reports and all the technical information, it's really down now to look how we would do this. This is a consultation with a, with an indigenous group. It's between the government and the indigenous group, not, not between us. We are obviously party to it. You know, for me, these high metal prices, I think, you know, hopefully will unlock this, because when you look at the, at the potential return to both, you know, the indigenous population and the government through any kind of participation that we still need to identify at this kind of prices are obviously staggering. Yeah, you know, it has been a very slow process, but when I look by now, we are done with all the, you know, information exchange. yeah you know it has been a very slow process but when i look by now we are done with all the you know information exchange We discussed all the details, we have all the reports and all the technical information, it's really down now to look how we would do this. we discussed all the details we have all the reports and all the technical information it's really down now to look how we would do this This is a consultation with a, with an indigenous group. this is a consultation with a with an indigenous group It's between the government and the indigenous group, not, not between us. it's between the government and the indigenous group not not between us We are obviously party to it. we are obviously party to it You know, for me, these high metal prices, I think, you know, hopefully will unlock this, because when you look at the, at the potential return to both, you know, the indigenous population and the government through any kind of participation that we still need to identify at this kind of prices are obviously staggering. you know for me these high metal prices i think you know hopefully will unlock this because when you look at the at the potential return to both you know the indigenous population and the government through any kind of participation that we still need to identify at this kind of prices are obviously staggering You look at a, you know, at least 22 million ounce a year producer at very low cost. When it was in production last time in 2018 or 2017, the cost was about $8 all-in cost. Of course, when you look forward to now, that would probably increase somewhere in, I don't know, maybe $13, $12, $13. Very productive, big mine with a 45-meter wide main structure. You know, it would make a really big change, not only for our production profile, but a very big change for Guatemala and its population. That really got kind of, you know, put on the map, I think, for a lot of people with these high metal prices that we're seeing right now. You look at a, you know, at least 22 million ounce a year producer at very low cost. you look at a you know at least 22 million ounce a year producer at very low cost When it was in production last time in 2018 or 2017, the cost was about $8 all-in cost. when it was in production last time in 2018 or 2017 the cost was about $8 all-in cost Of course, when you look forward to now, that would probably increase somewhere in, I don't know, maybe $13, $12, $13. of course when you look forward to now that would probably increase somewhere in i don't know maybe $13 $12 $13 Very productive, big mine with a 45-meter wide main structure. very productive big mine with a 45-meter wide main structure You know, it would make a really big change, not only for our production profile, but a very big change for Guatemala and its population. you know it would make a really big change not only for our production profile but a very big change for guatemala and its population That really got kind of, you know, put on the map, I think, for a lot of people with these high metal prices that we're seeing right now. that really got kind of you know put on the map i think for a lot of people with these high metal prices that we're seeing right now I really hope that, you know, the possibility to have a participation in this project, should bring it to a place where we could, where we could move forward with it. I really hope that, you know, the possibility to have a participation in this project, should bring it to a place where we could, where we could move forward with it. i really hope that you know the possibility to have a participation in this project should bring it to a place where we could where we could move forward with it

Speaker 1: Do you kind of take that meeting by meeting, or, what are the milestones that we could see on it? Do you kind of take that meeting by meeting, or, what are the milestones that we could see on it? do you kind of take that meeting by meeting or what are the milestones that we could see on it

Speaker 2: Yeah, no, this is really meeting by meeting. I don't know when that will happen. I always said I can't give really a guidance. This is the big upside for Pan American. Keep in mind, when we purchased our resource, we really didn't pay for the asset. What happened was it was already shut down, you know, I couldn't ask the Pan Am shareholders to pay for a shut down asset. We issued a CVR, a contingent value right for that asset. If it comes back into production and is de-risked, we will exchange those for Pan Am shares. Yeah, no, this is really meeting by meeting. yeah no this is really meeting by meeting I don't know when that will happen. i don't know when that will happen I always said I can't give really a guidance. i always said i can't give really a guidance This is the big upside for Pan American. this is the big upside for pan american Keep in mind, when we purchased our resource, we really didn't pay for the asset. keep in mind when we purchased our resource we really didn't pay for the asset What happened was it was already shut down, you know, I couldn't ask the Pan Am shareholders to pay for a shut down asset. what happened was it was already shut down you know i couldn't ask the pan am shareholders to pay for a shut down asset We issued a CVR, a contingent value right for that asset. we issued a cvr a contingent value right for that asset If it comes back into production and is de-risked, we will exchange those for Pan Am shares. if it comes back into production and is de-risked we will exchange those for pan am shares We would issue about 15 million Pan Am shares, it would be about less than a 4%, I call it dilution, but it's not really a dilution of Pan Am shares to increase our production by about 22 million ounces a year. A great place to be where you don't have a financial downside, but you have a really gigantic production upside. We would issue about 15 million Pan Am shares, it would be about less than a 4%, I call it dilution, but it's not really a dilution of Pan Am shares to increase our production by about 22 million ounces a year. we would issue about 15 million pan am shares it would be about less than a 4% i call it dilution but it's not really a dilution of pan am shares to increase our production by about 22 million ounces a year A great place to be where you don't have a financial downside, but you have a really gigantic production upside. a great place to be where you don't have a financial downside but you have a really gigantic production upside

Speaker 1: Absolutely. Maybe one on capital allocation. You finished 2025 with $1.3 billion in cash, over $1.3 billion. How are you balancing incremental asset investment needs versus shareholder returns? Absolutely. absolutely Maybe one on capital allocation. maybe one on capital allocation You finished 2025 with $1.3 billion in cash, over $1.3 billion. you finished 2025 with $1.3 billion in cash over $1.3 billion How are you balancing incremental asset investment needs versus shareholder returns? how are you balancing incremental asset investment needs versus shareholder returns

Speaker 2: Yeah, look, I mean, number one, always, always has been for us, you have to spend the money on the exploration, right? You have to replace your reserves. Very, very important to spend your money on your sustaining capital. Of course, you can see even with all the project capital, we're not even making a dent in the current cash flow generation, so there's no debt to repay. We have about $800 million in debt in long-term bonds. The biggest one, $500 million, on it, due in 2031. The interest rate is 2.6% on that, no hurry to pay that back neither, which leaves us with the only bucket left, which is obviously return to shareholders. We just increased our dividend for the third time in three quarters, consecutive quarters, last week. Yeah, look, I mean, number one, always, always has been for us, you have to spend the money on the exploration, right? yeah look i mean number one always always has been for us you have to spend the money on the exploration right You have to replace your reserves. you have to replace your reserves Very, very important to spend your money on your sustaining capital. very very important to spend your money on your sustaining capital Of course, you can see even with all the project capital, we're not even making a dent in the current cash flow generation, so there's no debt to repay. of course you can see even with all the project capital we're not even making a dent in the current cash flow generation so there's no debt to repay We have about $800 million in debt in long-term bonds. we have about $800 million in debt in long-term bonds The biggest one, $500 million, on it, due in 2031. the biggest one $500 million on it due in 2031 The interest rate is 2.6% on that, no hurry to pay that back neither, which leaves us with the only bucket left, which is obviously return to shareholders. the interest rate is 2.6% on that no hurry to pay that back neither which leaves us with the only bucket left which is obviously return to shareholders We just increased our dividend for the third time in three quarters, consecutive quarters, last week. we just increased our dividend for the third time in three quarters consecutive quarters last week We increased it by 29%. I think that each quarter before, we increased the dividend by about 15% or 16%. I'm, you know, very happy to make these returns to the shareholders. I think, just leaving it where it is, it would return about $350 million to shareholders in dividend. We have a share buyback program in place and, and buyback shares as well. As, as we heard before, there's obviously different tax realities in different places in the world for our shareholders. Some prefer share buyback, some prefer dividend. I like to, I like to do both, and there's obviously enough cash available to do that. You know, a very similar situation in the mining space that normally we never had that luxury, right? People talk about quite, quite relatively small dividends. We increased it by 29%. we increased it by 29% I think that each quarter before, we increased the dividend by about 15% or 16%. i think that each quarter before we increased the dividend by about 15% or 16% I'm, you know, very happy to make these returns to the shareholders. i'm you know very happy to make these returns to the shareholders I think, just leaving it where it is, it would return about $350 million to shareholders in dividend. i think just leaving it where it is it would return about $350 million to shareholders in dividend We have a share buyback program in place and, and buyback shares as well. we have a share buyback program in place and and buyback shares as well As, as we heard before, there's obviously different tax realities in different places in the world for our shareholders. as as we heard before there's obviously different tax realities in different places in the world for our shareholders Some prefer share buyback, some prefer dividend. some prefer share buyback some prefer dividend I like to, I like to do both, and there's obviously enough cash available to do that. i like to i like to do both and there's obviously enough cash available to do that You know, a very similar situation in the mining space that normally we never had that luxury, right? you know a very similar situation in the mining space that normally we never had that luxury right People talk about quite, quite relatively small dividends. people talk about quite quite relatively small dividends Some people did some share buyback, and then, you know, they, they, they, they saw the cycle go away again, and then nobody would do anything. For me, it has been always very important to continue paying a dividend. We pay uninterrupted dividend since 2010. That's very important to us. I, I see it as part of our cost structure, really. That has to be possible to deliver something to our shareholders in the downturn as well. It's easy to do it now, but in the downturn as well, very important. For sure, the share buyback is an important tool as well. You will see the combination of the two, and if metal prices stay where they are or keep climbing, we will accelerate that return as well. Some people did some share buyback, and then, you know, they, they, they, they saw the cycle go away again, and then nobody would do anything. some people did some share buyback and then you know they they they they saw the cycle go away again and then nobody would do anything For me, it has been always very important to continue paying a dividend. for me it has been always very important to continue paying a dividend We pay uninterrupted dividend since 2010. we pay uninterrupted dividend since 2010 That's very important to us. that's very important to us I, I see it as part of our cost structure, really. i i see it as part of our cost structure really That has to be possible to deliver something to our shareholders in the downturn as well. that has to be possible to deliver something to our shareholders in the downturn as well It's easy to do it now, but in the downturn as well, very important. it's easy to do it now but in the downturn as well very important For sure, the share buyback is an important tool as well. for sure the share buyback is an important tool as well You will see the combination of the two, and if metal prices stay where they are or keep climbing, we will accelerate that return as well. you will see the combination of the two and if metal prices stay where they are or keep climbing we will accelerate that return as well

Speaker 1: Then just one on your asset portfolio. I think, there might be some interesting opportunities. You know, you've got a diverse group of assets. Do you think there's still, optimization potential in the portfolio? How are you feeling about the current mix? Then just one on your asset portfolio. then just one on your asset portfolio I think, there might be some interesting opportunities. i think there might be some interesting opportunities You know, you've got a diverse group of assets. you know you've got a diverse group of assets Do you think there's still, optimization potential in the portfolio? do you think there's still optimization potential in the portfolio How are you feeling about the current mix? how are you feeling about the current mix

Speaker 2: Definitely. I mean, look at Jacobina in Brazil. It's a 100% gold producer, but it's a great mine to have. Right now, we have a mine plan until, I think, 2053. We still add every year, 3-4 years of additional production, and we really look at now with different eyes at this asset. When we bought it, it was 8,000 ton a day underground operation. I think we are close to 9,000 permanent. I think there's a way for us to go to 10,000 tons a day, but I think there's a way to go way higher than that as well. There will need to make some investment there in the plant, make it more efficient, get a different extraction method. Definitely. definitely I mean, look at Jacobina in Brazil. i mean look at jacobina in brazil It's a 100% gold producer, but it's a great mine to have. it's a 100% gold producer but it's a great mine to have Right now, we have a mine plan until, I think, 2053. right now we have a mine plan until i think 2053 We still add every year, 3-4 years of additional production, and we really look at now with different eyes at this asset. we still add every year 3-4 years of additional production and we really look at now with different eyes at this asset When we bought it, it was 8,000 ton a day underground operation. when we bought it it was 8,000 ton a day underground operation I think we are close to 9,000 permanent. i think we are close to 9,000 permanent I think there's a way for us to go to 10,000 tons a day, but I think there's a way to go way higher than that as well. i think there's a way for us to go to 10,000 tons a day but i think there's a way to go way higher than that as well There will need to make some investment there in the plant, make it more efficient, get a different extraction method. there will need to make some investment there in the plant make it more efficient get a different extraction method This is actually not an asset that goes deeper, but it's actually a very long asset. You have another problem, right? You don't have to take deep ramps, but you have to have a very efficient way to bring the ore to, to your mill. We're looking at conveying methods. At the moment, everything is done by trucks, and then we look at a dry stack tailings and a backfill option there. A lot of engineering going on right now, so this will take a number of years to get there, but I think there's so many years of resources ahead. For us at Jacobina, I really want to see what's the maximum we can bring that asset. This is actually not an asset that goes deeper, but it's actually a very long asset. this is actually not an asset that goes deeper but it's actually a very long asset You have another problem, right? you have another problem right You don't have to take deep ramps, but you have to have a very efficient way to bring the ore to, to your mill. you don't have to take deep ramps but you have to have a very efficient way to bring the ore to to your mill We're looking at conveying methods. we're looking at conveying methods At the moment, everything is done by trucks, and then we look at a dry stack tailings and a backfill option there. at the moment everything is done by trucks and then we look at a dry stack tailings and a backfill option there A lot of engineering going on right now, so this will take a number of years to get there, but I think there's so many years of resources ahead. a lot of engineering going on right now so this will take a number of years to get there but i think there's so many years of resources ahead For us at Jacobina, I really want to see what's the maximum we can bring that asset. for us at jacobina i really want to see what's the maximum we can bring that asset At the moment, you know, it's a low cost, 200,000+ ounce a year gold producer, and, that's a great place to be, but I think we can do quite a bit better at Jacobina over time. At the moment, you know, it's a low cost, 200,000+ ounce a year gold producer, and, that's a great place to be, but I think we can do quite a bit better at Jacobina over time. at the moment you know it's a low cost 200,000+ ounce a year gold producer and that's a great place to be but i think we can do quite a bit better at jacobina over time

Speaker 1: I also saw a mention on your conference call on Timmins satellites. I also saw a mention on your conference call on Timmins satellites. i also saw a mention on your conference call on timmins satellites

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Is there any other things in the portfolio that people may not be aware of that are interesting? Is there any other things in the portfolio that people may not be aware of that are interesting? is there any other things in the portfolio that people may not be aware of that are interesting

Speaker 2: Yeah, Timmins is an interesting one because, you know, when we bought it, it was kind of, you know, made a little bit of money, but not a lot. Obviously, gold was at $1,100 when we bought it. You can imagine that now it's a very attractive asset. Over the years, with the exploration, we found quite a few very interesting satellites that we, one we're gonna develop now, the other ones, we're gonna drill out in detail, and I think that's gonna add substantial value to Timmins. You know, really looking forward where we can bring that asset as well. It has been kind of there, you know, chugging along, and, and people didn't really pay a lot of attention to it, but I think there's way more upside to that anybody thinks right now. Yeah, Timmins is an interesting one because, you know, when we bought it, it was kind of, you know, made a little bit of money, but not a lot. yeah timmins is an interesting one because you know when we bought it it was kind of you know made a little bit of money but not a lot Obviously, gold was at $1,100 when we bought it. obviously gold was at $1,100 when we bought it You can imagine that now it's a very attractive asset. you can imagine that now it's a very attractive asset Over the years, with the exploration, we found quite a few very interesting satellites that we, one we're gonna develop now, the other ones, we're gonna drill out in detail, and I think that's gonna add substantial value to Timmins. over the years with the exploration we found quite a few very interesting satellites that we one we're gonna develop now the other ones we're gonna drill out in detail and i think that's gonna add substantial value to timmins You know, really looking forward where we can bring that asset as well. you know really looking forward where we can bring that asset as well It has been kind of there, you know, chugging along, and, and people didn't really pay a lot of attention to it, but I think there's way more upside to that anybody thinks right now. it has been kind of there you know chugging along and and people didn't really pay a lot of attention to it but i think there's way more upside to that anybody thinks right now

Speaker 1: We are out of time, thank you very much, Michael. That was great. We are out of time, thank you very much, Michael. we are out of time thank you very much michael That was great. that was great

Speaker 2: Thank you very much. Thank you very much. thank you very much