Americas Gold (USAS) Q3 2026 Earnings Call Transcript

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DATE

Nov. 13, 2026

CALL PARTICIPANTS

• Chairman and Chief Executive Officer - Joseph Paul Andre Huet
• Chief Financial Officer - Warren Varga
• Executive Vice President of Corporate Development - Oliver Turner

TAKEAWAYS

• Revenue -- $51.4 million, representing a 68% increase driven by higher realized metal prices and increased silver production.
• Net Loss -- $5.6 million, compared to a net loss of $16.5 million in the third quarter of 2025.
• Adjusted EBITDA -- $9.3 million, up from $1.9 million in the prior year quarter due to higher realized silver prices.
• Silver Production -- 800,000 ounces, marking a quarterly record in the 28-year history of the company.
• Silver Sales -- 860,000 ounces, reflecting a 17% increase at an average realized silver price of $61 per ounce.
• Cosalá Silver Production -- 420,000 ounces, representing a 28% increase year over year driven by higher silver grades and improved underground movement.
• Cosalá Copper Production -- 736,000 pounds, an increase of 30% year over year that contributed to lower cash costs.
• Cosalá Cash Cost -- $14 per silver ounce, down from $25 per ounce in the third quarter of 2025 due to higher byproduct credits from copper.
• Galena Silver Production -- 400,000 ounces, as the operation continued to recover from temporary challenges experienced in the second quarter.
• All-In Sustaining Costs -- $43 per silver ounce sold, which management noted was on the higher end of full-year guidance ranges.
• Cash Costs -- $3 per silver ounce sold, contributing to a nine-month average of $26.40 per ounce.
• Annual Production Guidance -- 3.2 million to 3.6 million ounces of silver, with the company currently on pace to achieve the lower end of this range.
• Cash and Cash Equivalents -- $63.3 million, reflecting the deployment of capital into consolidated revitalization and growth plans.
• Working Capital -- $23.1 million, in line with management expectations for the third quarter.
• Available Liquidity -- $113 million, including an additional $50 million available under the existing term loan facility subject to specific conditions.
• Exploration Drilling -- 20.5 meters of 54 grams per ton silver and 1.5% copper intersected at the SR 83 hole in Cosalá.
• Antimony Production -- 101,000 pounds, reflecting the company's focus on critical mineral supply chains.
• Galena Mining Productivity -- 150 to 200 tons per shift using modernized long hole mechanized mining, compared to 35 to 50 tons per shift with conventional methods.
• Lead Production -- 965,000 pounds, contributing to the quarterly silver equivalent production total.
• YTD Revenue -- $165.5 million, representing a 104% increase over the first nine months of 2025.

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RISKS

• Huet stated, "Galena, we know the costs were a little slightly higher than we had intended," noting the impact of capital projects on the 100-year-old mine.
• Huet warned that the company is "on pace to achieve the lower end of our guidance" for full-year silver production.

SUMMARY

Americas Gold and Silver Corporation (NYSEMKT:USAS) reported record quarterly silver production of 800,000 ounces, driven by operational performance at the Cosalá operations and ongoing modernization at the Galena complex. Management stated that the company remains on track to reach the lower end of its annual silver production target of 3.2 million to 3.6 million ounces, despite higher-than-intended costs at Galena. The company reported significant reductions in cash costs at Cosalá due to copper byproduct credits and the settlement of previous metal contract liabilities. Management indicated that strategic initiatives, including a joint venture for antimony processing and a transition to more efficient mechanized mining methods, are intended to provide a foundation for long-term sustainable production gains.

• Huet noted that Galena is transitioning to 75% to 80% long hole mining, which has increased mucking efficiency to as much as 200 tons per shift.
• Turner indicated that the company’s inaugural sustainability report serves as a catalyst for institutional shareholders to increase allocation sizes.
• Huet stated, "we have had six brand new discoveries at Galena since we have been here over the last 18 months."
• Management reported that the joint venture with US Antimony positions the company to contribute to supply chains for AI infrastructure and national security.
• Huet stated, "Cosalá has already surpassed its previous annual production record in the first 10 months of 2026."

INDUSTRY GLOSSARY

• AISC: All-In Sustaining Cost, a non-GAAP financial measure that represents the total cost of producing an ounce of metal, including sustaining capital expenditures.
• Antimony: A semi-metal used in advanced manufacturing, AI infrastructure, and national security applications.
• Long Hole Mining: A mechanized mining method where holes are drilled between two levels to blast and extract ore more efficiently than conventional methods.
• Leaky Feeder System: A communications system used in underground mining to allow continuous radio or internet contact throughout the mine.
• Silver Equivalent Ounces: A metric that combines silver production with the value of other produced metals, such as copper and lead, converted into a single silver-based total.

Full Conference Call Transcript

Operator: Thank you for standing by. My name is Jordan, and I will be your conference operator today. At this time, I would like to welcome everyone to the America's Gold and Silver Third Quarter 2026 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press *1 again. All participants are limited to 2 questions only. Thank you. I would now like to turn the call over to Paul Huet.

Chairman and CEO of America's Gold and Silver. Please go ahead.

Joseph Paul Andre Huet: Thank you, Jordan, and good morning, everyone, and welcome to America's Gold and Silver's Third Quarter 2026 Conference Call. As a reminder, this call is being recorded and will be available on our website's events page We will also reference a slide deck during today's webcast presentation. Joining me today are Warren Varga, our Chief Financial Officer, who will review the quarter's financial results and Oliver Turner, our Executive Vice President of corporate development. Before I open up, I just want to say something here. I was reminded 2 days ago that it was Veterans Day or Remembrance Day, depending on which country you are in, and we have a number, quite a few veterans who work for us.

And to each of you that have served, I just want to personally thank each and every 1 of you We are all reminded that we come to work for our families. We do all this hard work for a purpose. And those of you who have served, we thank each and every 1 of you. So I did want to open up by saying that. I will begin with our operational and strategic highlights before turning the call over to Warren. And as normal cautionary notes over on slide 3 of the slide deck, please review the cautionary statements concerning forward looking information and non-GAAP measures in our third quarter MD&A. Earnings release and presentation.

Unless otherwise noted, all dollar figures today discussed are in U. S. Dollars. Over to slide 5 on the deck, the highlights. As always, safety comes first for us. I want to recognize our operating teams for maintaining 0 lost time accidents since March 2025 at Galena and April 2025 in Mexico at Cozola. That achievement reflects daily discipline and strong commitment from our operating and safety teams. Particularly as we execute a substantial growth program. The third quarter for America's gold and silver was a tremendous milestone for us.

Look, we produced 800 just a little over 800 thousand ounces of silver on a silver equivalent it was right around 940 thousand silver equivalent ounces and sold about 860 thousand ounces of silver. that is never been done in this company. In the 28 year history of this company, that has never been done. So I have to give a good credit and kudos to the entire team from the top to the bottom for breaking a 28 year record and 1 that we are very happy to be looking forward to be breaking this quarter. So well done to the team.

For the first 3 quarters of 2026, we produced about 2.3 million ounces of silver, and we are on pace to achieve the lower end of our guidance and existing full year production. That 3.2 million to 3.6 million ounces of silver And our AISC is likely going to be a little bit on the higher end of our guidance, but still at our guidance. But just. I just wanna remind folks and reiterate something that I said even a year ago when I got here. These are big step ups year over year.

When we look at what the company has done before, what we are doing, these are massive milestones and big, big increases that we are doing in a district that is been around for a hundred years. it is important to recognize that this performance came while we continued to advance critical development and are modernizing Galena. We continue the strength of Coastalite. It provides us flexibility to accelerate the underground and that will support the Lima's aggressive future production as well. I am going to go over to slide 6, if you do not mind. At Cosalá delivered another exceptional quarter, producing right around 420 thousand ounces, call it roughly around that.

Of silver at a 23% increase quarter over quarter. 28% increase compared to the third quarter of 25. This strong performance was driven by higher silver grades, improved underground movement from our newer equipment, and continued advancement into the heart of the higher grade EC 21. Despite processing less tons, the operation delivered significantly higher silver production, demonstrating the strength of the ore body and the team's ability to maximize production efficiently. I certainly want to take a moment here and recognize our team in Mexico for their outstanding execution this quarter. As I want to reiterate something else here. Last year, we had a record in Mexico.

As a company, we created a record In the first 10 months of 2026, we broke that record. Still have 2 more months left, so we are going to shatter last year's record already. So you talk about some of these milestones and some of these initiatives, I think people fail to. They get sucked into the market and silver prices and get discouraged, but we are delivering some of the greatest results in the company's history. And I cannot but continue to reinforce that and continue to lead our people at both sites and continue to thank them and praise them for all their hard work. Copper production was also increased 30% year-over-year to approximately 736 thousand pounds.

Combined with higher byproduct credits, this strong operational performance contributed to a meaningful reduction in cash cost. Our cash cost were declined around just a little over $14 per silver ounce compared to around $25 an ounce in Q3. So tremendous cash savings there as we continue to deliver and mine in the different areas. Over to slide 7, beyond the strong production results, we are particularly encouraged by the continued exploration success at Cozula. Recent infill drilling and step out drilling at San Rafael Upper and the EC 120 zones have delivered exceptional results. Further reinforcing our confidence in the quality and the potential of these ore bodies, and specifically these assets Some of you have the slides open.

Just look at that slide 7, and I will talk about 1 intercept here specifically. If you look at SR 83, it returned 20.5 meters a grade of 54 grams per ton and 1.5% copper. that is outside of the boundary of our 2025 inferred mineral resource inventory. And again, if you I am just going to pause here for 10 seconds, if you were to look at that slide and just look at some other results, I named it off 1, but there are other results, like, 4 meters of 598 grams. 16.6 meters of 300 grams. 22 meters of 392 grams, The difference here is we are seeing results here at Cosalá, people.

Results of grades that are very, very similar to what we see at Galena. They are world class, except they are anywhere from 8 to 10x the width. This is what we are getting to unlock in Mexico, which has been astonishing for us. So we are very, very excited Many of you know that our Beta Hunt Mine when we were At Carrara had some exceptionally wide zones similar to this, we had lower grade pool back then, but it was so profitable because of the width. And that is what we are seeing here at Cosalá. there is no doubt my 35 plus years of mining, I have never seen any wits followed by grades like this.

These are some of the best you are going to see world class. So I am extremely excited to get these zones into a mine plan in 2027 and beyond. Kosovo is certainly shaping up to be a very exciting asset with these kinds of intercepts. And look, again, if you look over to slide 7, you will be able to see what we are seeing. There are about 5x the average grade of what we had previously modeled in the last PEA. So in June, as we update the newest resource with this newer information.

So overall, the resource conversion drilling across San Rafael and EC 120 has consistently returned grades 2 to 3x the previously reported inferred resource like I was saying. These results are particularly encouraging as we continue to better define the mineralization and always evaluate the opportunities to enhance our future mine plan. It is important to keep in mind that our recent drilling results and I said this, but I am gonna repeat it, was not included in the 2025 mineral resource and mineral reserve estimates. They demonstrate potential for additional resource growth and grade improvement which will be evaluated as part of our future mineral resource estimates.

Looking ahead to 27, I am extremely proud and excited about what Cosalá can do and continue doing The operation, as I mentioned a little earlier, has already surpassed its previous annual production record in the first 10 months of 2026. Producing putting us on track to have yet another record year, which we will do. With strong operational momentum, continued to accessing the higher grade mineralization and encouraging exploration results, we believe Cosalá is extremely well positioned to build on this success and remain a very strong key contributor to our long term production Growth strategy.

Kosala's performance also played a major role helping America's gold and silver create a record that I talked about earlier in my presentation of accomplishing 800 thousand ounces of silver in a quarter. This milestone reflects exceptional performance from our Mexican operations. And, again, I do wanna say hats off to our entire team. I hope many of you are listening on this call. Thank you for all your efforts. Over to slide 8. About Galena, and I just wanna remind people about something at Galena.

We are not as we continue to invest in Galena, we continue to look down the road at Galena, we are not going to read something that we are trying to have a record quarter after quarter after quarter. What we are trying to do is something that will sustain for a very, very long time. We are building something and putting in infrastructure and spending money on something that will sustain something that is never been done before. So the amount of effort and hard work we are doing in the mine that is been around for 100 years remember, it is been a starved for capital. Forever.

So this investment was very much needed at Galena, but we are building something that we want to make sure can be sustainable for a very, very long time. So our priority remains building the foundation for sustainable higher rate production. The complex produced just under 400 thousand ounces of silver in the quarter, as the operation continued recovering from some of the temporary we experienced in Q2 and prioritizing setting up our infrastructure improvements and mine plan, again, like I said, for the long term sustainable production gains compared to just short term flash in the pan. Following No.

3 shaft improvements, we have been able to focus on much needed and much required waste development ahead of our future production areas in our silver copper zone. This work is very essential to expanding our long hole mining program. Opening additional panels.

We are seeing meaningful productivity gains as we continue to bring new high grade stopes into production using long hole mechanized mining and utilizing remote mucking, we increased the C cycle time from anywhere from I do not know 150 to 200 tons per ship compared to what we used to have 35 to 50 tons per ship using the conventional underhand cut and fill And many of you analysts got to see it rather than using back legs. We are using a modernized long hole drill. We continue to modernize the underground fleet We did not have any remote controls underground. We did not have any trucks underground. They are now underground. They are operating. Our communications are backbone.

A leaky feeder system. We now finally have a leaky feeder system that allows us to speak into the mind, that allows a shift boss, for example, who used to be able to maybe speak about 15% of the time, we are gonna be able to speak to them 100% of the time while they walk around doing their job day in, day out, with this new communication system that we have implemented and adopted. These are all interdependent projects, and their benefits will build over time. Our focus is on executing them safely in the right sequence rather than sacrificing the longer term plan for short term tons. Over to slide 9, exploration and people.

Exploration success at Galena is another reason we are obviously extremely excited. Sorry about that. On the operating level 49, we intersected 1.2 meters of 1.06 thousand grams silver 0.7% copper, and 0.6% antimony. This is again another new discovery. But it is not the only 1. We have had 6 brand new discoveries at Galena since we have been here over the last 18 months. And we are very excited about what they are going to bring into the future. These assay results are regularly intersecting the higher grade silver than currently modeled in the resource. it is the same situation as Cosalá.

Many of these results represent potential upside, and they were excluded from the 2025 mineral resource inventory. So they will be included in our next version of our resource and reserve update. So we are looking forward to adding many of the drilling that we have done These results are part of the largest exploration mineral resource conversion drilling our company has ever had in the history of a company. Across our operations, our people are delivering these advances while maintaining a strong safety culture, and I want to thank them for that.

The team at Galena that we have assembled with Chris Corley, Evan Peltier, and Ian McMullen are doing an amazing job at really revitalizing that district leading our team to some of the things that have never been done in that district. So we are we are very proud of Galena and where it is going and building the momentum that we are doing. With that, I am just going to take a moment here and let Warren talk about some of the financial opportunities we have in front of us. Over to you, Warren.

Warren Varga: Thank you, Paul, and good morning, everyone. Today, we reported our consolidated interim unaudited financial results for the 3- and 9-months ended September 30, 2026. Financial statements and MD&A are available on our website and through SEDAR plus and EDGAR. The third quarter net revenue was $51 million an increase of over 70% from $30 million in Q3 25. Primarily due to the higher realized metal prices and increased silver production in the quarter. Year to date, revenue totaled $167 million an increase of 106% year over year.

We sold approximately 860 thousand ounces of silver an increase of 17% during Q3 at an average realized silver price of $61 per ounce compared with $40 per ounce in the prior year quarter. In line with the market prices for silver. We reported a net loss of $5.6 million for the quarter, compared with a net loss of $16 million in Q3 25. The improvement primarily reflected higher revenue and the elimination of the metal contrast liabilities which we fully settled in the second quarter of this year. Adjusted earnings were a loss of $4.9 million or $0.02 per share Adjusted EBITDA was $9.3 million or $0.03 per share compared with $1.9 million in the third quarter of 25.

In the quarter, cash costs averaged $3 per silver ounce sold, and all in sustaining costs were approximately $43 per silver ounce sold. Year to date, AISC averaged approximately $39 per silver ounce sold. We ended September with $63 million in cash and equivalents with $23 million in working capital, in line with our expectations, as the company continues to deploy capital into its consolidated revitalization and growth plans, at both of our mines. Subject to satisfying certain conditions, an additional $50 million is available under our existing term loan facility. Providing the company with available liquidity of $113 million. I will now turn the call over to Oliver.

Oliver Turner: Thank you, Warren, and good morning, everyone. Our operational progress discussed by Paul is now supported by stronger financial and strategic platform. Following the settlement of our remaining precious metals delivery obligations earlier this year in the second quarter where we used our paper strategically, we have removed significant variable metal price linked obligations and simplified our capital structure going forward, just like ongoing operational improvements these adjustments now allow more of our profits going forward to flow through to our shareholders. At Galena, our iterative flywheel approach to continuous improvement identical to the strategy we executed previously at 2 other companies in the early years of those turnarounds is beginning to deliver results.

Much of these improvements do not show up immediately in quarterly numbers as we build the foundation for a very significant and sustainable silver production base in the Silver Valley. To achieve this takes constant iteration and compounding operational adjustments to reach the level required to transform into a major silver operation We are certainly excited by the progress we get to see every day and to date. And remain well on our way to achieving our targets. We also continue to advance a differentiated growth story built around high grade silver and critical minerals. At Galena, our ongoing exploration development programs support the longer term opportunity in not just silver, but also copper and antimony.

Capital markets profile has also continued to strengthen. America's was named to the TSX 26, ranking us as 1 of the best performing companies over a 3-year period. In October, we published our inaugural corporate sustainability report establishing a foundation for more comprehensive ESG measurement, risk management and reporting as the business grows. For a very significant number of our shareholders, this is and was a critical catalyst to increasing allocation sizes. And we are very proud to have reached this important milestone. We are already working on our 2026 report, which we expect to publish in the first half of 27.

Together, these developments support our ambition to become 1 of North America's leading silver producers and a strategic supplier of critical minerals. So with that, I will turn the call back over to Paul.

Joseph Paul Andre Huet: Thanks, Oliver. Again, I am just going to say something that I said a little earlier. Q3 was a record for our company. In fact, it was the strongest production quarter in a 25 plus year history of the company. And for that, I am extremely proud of what our teams have accomplished given the laser like focus we have on safety. You can see how safety and production correlate together. it is very obvious. We have gone a year and a half at both sites without a lot of time and we are breaking record after record. We have delivered strong revenue growth production sales, and continued investing in infrastructure that will support the next stage of our business.

Cosalá continues to demonstrate why it is such an important asset for our company. 1 of the most important requirements for turning around large capacity operations like we are doing at Galena is supporting cash flows from other assets and having options. And look, some of you will remember, at Cororo, we had Sparbos Reward, fueling the investments We Were Making Into Beta Hunt and to Higginsville in those early years. Here at America's Gold and Silver, our significant capital deployments, operational improvements at Galena are fueled and helped by the cash flow generations from Cosalá in these early years as we continue to turn it around.

On top of that, our world class exploration results at both Cosalá and the Galena Complex reinforce the scale of the opportunity at each operation. As we look to finish a strong 2026 and end with our guidance, Our priorities remain absolutely crystal clear. Keep our people safe. Execute the important work required to facilitate sustainable higher production levels. At all operations. Looking beyond this year, the long term case for our metals continues to strengthen. Silver and antimony are increasingly important to advanced manufacturing. Electrification, AI infrastructure, and national security.

With high grade operations at Kosala and Galena and our Antimony joint venture with US Antimony, we believe America's gold and silver is well positioned to contribute meaningfully to those supply chains. Just want to take a moment and thank each and every 1 of you for your interest in America's Gold and Silver and we look forward to a couple of questions. At the moment. Jordan.

Operator: As a reminder, if you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. Your first question comes from the line of Dalton Baretto from BMO Capital Markets. Your line is live.

Dalton Baretto: Hi, Paul and team. Thanks for taking my question. I have 2. So the first 1 is you have been working to address several long standing bottlenecks at Galena. Which improvements have made biggest differences so far? And what changes are your teams seeing underground?

Joseph Paul Andre Huet: Yes, Dalton, a very good question, Actually, it is a great 1 to start off with. Look, I think recently here just before Beaver Creek and BMO, many of the analysts got to see it with their own eyes. I think you got to see a number of things we are doing. I mentioned 1 a little earlier today, like a new communication system You do not usually get credit for something like that, but it costs you $3 million. Our mind had nothing. Having the ability for a supervisor to be accounted on or available 100% of the time instead of 15% of the time matters. So those things matter. The muck flow movement, this is a big 1.

Think about, well, this mine's been around for 100 years. it is always been handheld jacklegs. Think about the size of fragmentation that produces. It might be the size of your fist or maybe a big piece is the size of somebody's head. When you are drilling and blasting in long hole, you are going to get bigger rock and our system was not set up to accommodate that. We did not have grizzlies in place So Evan and the team have quickly put in grizzlies into place. They put in rock breakers, There were pictures here 2 years ago, Dalton, of people on grizzlies at their loading pocket with hammers, double jack hammers. You are like, Oh my God.

How old is this? So we have we have upgraded our rail system, bigger cars, added grizzlies, Obviously, it goes without saying changing the mining method is the biggest 1. But it does have consequences. It does have cheaper costs, quicker turnaround, different fragmentation. The mine was never set up for that. So putting in all these things like the grizzly updates, the ore cars, the leaky feeder, Obviously, without doubt, the shaft upgrades have been amazing that Evan and the team have done. We have gone from 40 tons per hour to over 100 tons per hour.

There are so many of these things, and, again, I am repeating myself, but it was great to have the analysts come and see When you get to walk into an old mine and you see there is a brand new skip or a brand new cage, you can see the dollars we have spent or a brand new rock breaker. You are like, okay, this is going all these things are not going. We are not doing that to have an outstanding quarter. We are doing that to build infrastructure that will be here for 20 plus years that will last a long time.

So I mentioned a whole bunch of them here, Dalton. it is They are all very equally important in each bottleneck. Has to be overcome in order for us to achieve these new levels and new heights and sustain them. Again, I know I am repeating myself, but sustaining them and making sure we do them quarter after quarter is what matters. It needs to become boring. You need to say you are going to get to a certain level, and this thing is going to do it time and time again. You are going to be very consistent, just like we did at Clondex just like we did at Aurora, and it is got to be that way.

So hopefully a whole bunch of them know it was a long answer, Dalton, but there was like, 5 of them that I gave you.

Dalton Baretto: No. Thank you for that. My second question is more of a follow-up on that. So with the shaft improvements completed, and additional infrastructure advancing, what are the next milestones need to translate the investment into higher, more consistent production?

Joseph Paul Andre Huet: Yeah. 1 of the big ones, again, I think people got to see with their own eyes, there is 2 of them that are still outstanding. The new paste fill plant and our team on-site are doing an amazing job managing the contractor and getting that done. We are the only line in the district that does not have a modernized base fill plant. We need that. We know we are going to-- well, we are hoping to start it in Q1. It will likely be built at the end of the quarter. We are going to see how the weather is.

When we start this thing up, this is going to be something, again, that is going to last forever. And this is a perfect example where we did not think about a short quarter. We thought about, hey, if we added a couple extra if we spent more money today, and we look into the future, we could increase tails capacity by over 10 years. By spending money today. And that is the type of approaches we are doing every project we do. So for the paste fill plant, not only will it allow us to fill faster, have a better, more homogeneous compressive strength, something much more reliable like everyone else does.

But we are now being able to extend our tails dam life because we are putting in a dry stack at the back end of this These are the types of decisions that you take today that they do not have an impact in a week or 2 weeks, but they will have an impact forever for sustaining the biggest production that is ever come out of these mines. In history. The second 1, Dalton, is really we have been squarely focused here now that Evan and the team have been pushing pretty hard at getting waste footage and ore footage up at moving waste zone. We have been.

We have suffered from not having enough waist development in front of us. ourselves, need to get waste development in front of us. ourselves. So those 2 things the paste fill plant and waste development, are very key and critical to us making sure the rest of the things fall in line together.

Operator: Your next question comes from the line of Case Bongirne from Stifel. Your line is live.

Case Bongirne: Hey, guys. Paul, Warren, Oliver. Thanks for taking my question, and good morning. Thanks for walking through some of the material handling. Advancements you have had over the year. Can you can you provide a bit of color on the mining front, and specifically the transitional long haul? What dilution over breakage is like and tracking versus where you thought you would be at this point?

Joseph Paul Andre Huet: Yeah. Look, that is a great question, Case. And here. Here's what we are doing. Not unlike any other mine anywhere in the world that has long haul, we are identifying different domains, geological domains, And what I mean by that is we will have long hole at this mine, call it 75 to 80% of it. It will never be a 100%. We always knew that. However, we will mine that long hole very narrow, but we will mine it maybe differently.

What I mean by that is we might be drilling a 2 and a quarter inch hole in 1 area, in another hole we might-- In another area domain, we might be drilling a 2 and a 3 quarter inch hole the spacing might be different, the way we blast the footwall or the hanging wall might be different. We might be putting in cable bolts on the hanging wall and some mirrors, and we might not do it in other areas. So as you bring in long hole into a new mine, just like we did at let me just be very clear. We did this at Midas. We did this at Fire Creek. We did this in Hollister.

We did this in Beta Hunt. This is not new. This is something we have done time and time again. And I have learned this from doing it in Red Lake in Timmins, Ontario, Ranabbi. This is not something that is new, but what we need to do is identify the different geology, the different matrix, and how you drill and blast a wall so that you do exactly what you said. You make sure you prevent any dilution. We have got stopes here that we have taken out in some areas where there is no capable We are drilling a normal pattern like I had at Midas or Fire Creek. And we are seeing no added.

No additional dilution at all. Nothing at all. there is going to be, I suspect, 2 to 3 different domains that we are going to identify. But that is going to come with the more stopes we mine. And we will say, all we are doing is we are changing the way we drill or blast or muck or backfill or backfill. Those areas. Sometimes we will use conventional fill. Sometimes we will use the new paste fill plant. So the modernization of long haul has been so overwhelmingly successful it is actually blown my mind how we see some of the stopes. Like we have got pictures in our slide deck.

If you just look at our slide you can see a top cut, you can see a bottom cut, you can see how narrow 1.1, 1.2 meters wide We have visitors from all over The US, mining companies from all over The US asking us, can we come and see what you guys are doing? Of course, we are going to help others. Why would not we? In our best interest to always help neighbors or people in our mining industry. But they are seeing the pictures in the slide deck. Analysts are seeing it underground. Our miners are seeing it.

And we are able to take a stope that would have taken us 12 months to drill and blast with tack legs, we are able to do it in less than 30 days. it is cheaper. it is more efficient. What we need to do is understand the different domains. That does not come in 2 months. That happens over time. It took me about 4 years to do it at Midas, but we are not seeing additional dilution. What we are actually seeing is the dilution is flat. We are not getting any additional dilution. Just look at the pictures.

But all I am saying is that in the different areas of the mine, as we continue to mine long holes, we will just continue to refine it and get better. If there is an area of the mind that the vein is 70 degrees cold, you might want to put cable bolts for the hang wall. And those are yet to be identified. So it is fluid, it is a work in progress. And we will continue to adopt and move very, very quickly as we look at our top cuts, our bottom cuts, and another example is the strike length of the stope. Or the length of your hole.

Sometimes you might go to a 12-meter hole, where in Australia I was able to push to an 18- to 20-meter hole. So all those things matter by domain. And then we are learning that as we continue to adopt long haul. At Galena, which has been, again, overwhelmingly successful. I know it was a long winded answer, but it is it is not a simple answer, Case, because there is a lot of moving parts, and it is fluid.

Case Bongirne: Mhmm. Yep. No, 100%. Thanks for that, Paul. And 1 more for me, if I may. Can you kind of provide a bit of color just My apologies.

Operator: They have dropped. I will place them right back in. Just trying to find Case Bongirne's here. Just 1 moment. Case, your line is live.

Case Bongirne: Thanks, operator. And then thanks, Paul, for the follow-up there. Just 1 more for me, if I may. Can you kind of walk us through how the progress with some of the development towards some of the higher grade silver copper is transitioning and when we could start to see some of that hit the mill into 2027?

Joseph Paul Andre Huet: Yeah. Look, again, Case, another great question. Look, Here's how I am going to answer about it. I am gonna say something that some of you got to see, and we said it at the site visit. I have been. Personally, my. Many of you have followed me for over 15 years, and thank you for that. But I have been in mine 39 years, and when I can consider mining as a whole and I look at new discoveries, let me use 1 great example for you, Case. A year-- A little over a year ago, we discovered the 034 vein. It was a brand new discovery at Galena, and just reiterate, we have had 6 new discoveries. 6.

We had a brand new discovery Brand new. You think about announcing a new discovery anywhere in the world, whether it is in The US, whether it is in Canada, whether it is in Mexico, South Africa, pick a place, Australia. You have a new discovery. How long does it typically take a company to get into that new area? We had a brand new discovery about 18 months ago. We followed up with around 15 to 25 holes We followed up with a drift into it.

When the analysts were here about a month ago, we actually took the first cut out of that 34 vein in less than 16 months, we went from a brand new discovery That was not even in our model yet. that is how quick we have been able to adopt and move so fast because of the existing infrastructure. Because of everything that is already in place. We have got billions of dollars of infrastructure in place here. We get to drill it in a shorter hole. We get to drill it from underground. But more important, this is fully permitted, ready to go, We get to access it quickly, to your question.

So we have known cases of areas that we have discovered less about a year ago. That were already mining. So for us, as we look into this future and we look into the 6 new discoveries, all we are doing is looking at shedding off maybe some of the lower grade and replacing it with some of the higher grade that we have already discovered. But think back in your own lifetime, Case, or anybody's Like, from a discovery to the time they are mining. And I know. I could tell you cases where it is 5, 10, 15 years, a new discovery. 10 years later, they are mining We are talking months away here. that is unbelievable.

Because of the existing infrastructure we have. We walked into a mine that has been around for 100 years. It was not modernized. It was starved for capital. But all that hundred years still helped us as shareholders. Look. Case, I am I am 1 of the largest shareholders of the company. I have never felt better about what we are doing ever. When I see the records, when I see the future, when I look into it, I tell my wife and 8 kids, listen. We have a tremendous opportunity in front of us. ourselves. This was never a 100-meter dash. This was always a marathon.

And by God, stick to the plan because we are gonna win this marathon.

Operator: Your next question comes from the line of Heiko Ihle from H.C. Wainwright Your line is live.

Ken Ildaig: Hi, Paul. with members of the team. Maybe just starts from Cosalá. You guys had a very good quarter there. I was just curious how much of that came from EC 21 grade. And, basically, how the ore body is reconciling to the model as we head into 2027.

Joseph Paul Andre Huet: Again, look, thank you very much for the question. As we continue, I am just going to repeat something I said a little earlier because I think it is very, very worthwhile mentioning, especially some people listen in to the call afterwards, and they listen in on the Q&A. it is worth mentioning that when we look at COSLA as a whole, in the first 10 months of the year, Heiko, we have already beat last year's record. And 2025, Heiko, it was a record for this company. Company had never achieved in Mexico what we did in 2025. In the first 10 months, we have already beat that record. We still have 2 more months to go.

You look at our cash cost dropping from about $25 a cash cost to about $14.50 cash cost. Why? Because of the copper byproduct credits. And where is it coming from? To your point, it is coming from EC 21. We are finally into an area. We have been talking about it for a year since I have been I have been here, call it 18 months now. We are going a little over 18 months. We have been excited to get into this area. what is extremely exciting, what is extremely exciting is what you asked the question about, the reconciliation. Well, it is reconciling a lot higher than the model. Well, why? Well, it is simple.

The model had about 100 grams per ton. We are seeing areas that we are intercepting that are anywhere from 4 or 5 times that. I cannot wait to see the next revision of this resource up it is going to be very exciting because we did not have these drills. We leave them out. Look, I am at slide 7. You wrap around that. there is about 10 drill holes, all of them. Braids of galena. And this is where we are in. We are mining into those things. So as we finish the year, we know it is going to be a record for the company at Kosala.

We are setting ourselves up for 2027 to continue this strong growth and the performance that we have seen from Cosalá. So hard not to be excited. And I know I am repeating myself, but I am a very large shareholder, and I could not be more excited about what the future is going to deliver for us and other shareholders.

Ken Ildaig: Okay. Yeah. Thanks for that. That was good. Maybe just switching gears a little bit to Galena. I was kind of reading the MD&A, and I saw OpEx per ton was higher than last quarter. Right? there is a little bit of commentary in the about September development push, and I was just you know, wondering how much of this increase is sort of 1-off from this development push. Versus the, you know, structural and how much are you looking to see cost reduced in. Into Q4?

Joseph Paul Andre Huet: Yeah. Look, we have been very focused at both of our operations. Cosalá and Galena. Galena I said it. If I have not said it once, I have said it a thousand times, Galena has been starved for capital for 3 decades. We got a 100-year-old mine that we are trying to modernize. We believe in the guidance numbers we have set out. We expect to be on the higher end of the guidance. But we still know that it is a very achievable number.

But there is no doubt we have to finish the capital projects, and we have been fairly focused since the shaft upgrades have been done, we have been breaking records on waste development or development, we have only been breaking those records, by the way. And we are talking anywhere from 25% to 35% increase in some of these footages because of the debottlenecking of the shaft and putting in the grizzlies and other things. So we have to finish all these projects that we have in front of us. us. And I have talked a bit about how many more we have in front of us. us.

So certainly, Galena, we know the costs were a little slightly higher than we had intended. But we are not doing something that we want to do the flash in the pan. And I think the best way for me to repeat something, Heiko, is to talk about the paste fill plant. The paste plant was originally designed to just be paste fill, but we are now extending the tails mine the life of the tails dam by 8 to 10 years. There is no real estate in Idaho. Go find a flat piece of land in Idaho. You are surrounded by mountains or a better thing, surrounded by mines. Throw a dart on a 20-mile-long section in Idaho.

There are 15 mines lined up in a row. But there is no flat land. So for us and why do we see an increase in cost? We know some of it these capital projects. Some of these projects that we are doing, that will sustain the longer term production.

Operator: That concludes our question and answer session. I will now turn it back over to Paul Huet for closing remarks.

Joseph Paul Andre Huet: Yeah. Jordan, look. I just wanna take a moment and thank all the analysts all our shareholders, Look, we see the market. We all see it. We feel it. Nobody feels it more than the team on the ground. We are. I cannot be-- I cannot express the gratitude I have for both of our operating teams at Galena in Mexico and in closing, I am gonna say, as 1 of the largest shareholders of America's gold and silver, I have never been more excited about what we have in front of us. us and in the future for this company. Thank you to each and every 1 of you for joining us here today. Have a blessed day.

All the best.

Operator: That concludes today's meeting. You may now disconnect.

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