Andean Precious Metals

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of Andean precious metals. Hi Russ. Thank you Rose. Good afternoon everybody. Nice to be here with with all of you. Thanks for joining. Before we get started, I will have to invite you to read our legal disclaimers, forward looking statements as well. So now getting back to business, our history, we're nearly about this is our 9th year, we're getting close to the first decade of being in existence. San San Bartolome was a company that was privately purchased by a group of individuals led by myself who started out this company in Bolivia. It was purchased from Coeur Mining. It was, it's an oxide processing facility which has a capacity of 5000 tons per day mill. Fast forward from that, you've got, as a part of our history, we went public in the TSX venture on March 2021. On November 2023, we purchased a gold heap bleach mine in Kern County, California, which is the Golden Queen M. Back to going forward to January 2025, we uplisted to the TSX big board. On March 2026 we got included in the GDXJ and we're currently now positioned for what we call continued our transformational growth. And we have a very strong capital structure and financial balance sheet to pursue organic and inorganic growth going forward. So first, How are we well positioned for the next stages in growth? We have a proven cash flow generation track record. Our company, because of the business model that we generated since inception in Bolivia, we've been cash flow positive every single year. Even at the time that we went public, we actually had sufficient cash flow we only. Listed in the stock exchange, the minimum amount of shares that was regulatorily complied with, that's the reason why insiders in our company have a strong foothold in the capital structure. We are very well balanced into both precious metals. As of 2025, 57% of our revenues came from silver production and 43% from gold production. So we're depending on which metal gets more appreciation on the year. We're well balanced and positioned to capitalize on both metals. We all have organic growth with low technical risk. We're basically focusing on two things in the case of. Golden Queen in California, we're focusing on exploration and mine life expansion as well as some other optimization, actions that we're taking. And in the case of Bolivia, we're pursuing additional contracts in order to fit the mill as we're gonna show in, in, in a second. Our strong balance sheet has been a proven track record of disciplined execution, but most importantly disciplined financial standards and ratios that we're keeping, and we have a clear path to value creation going forward. in general, as I mentioned before, right now 36% of our shares is the float that we have. Insiders own 48%. Eric Sprot has 13%, and the remaining ETFs has about 3% of our company, as I mentioned just a few minutes. We also got included in the in the SEAL J and the GDXJ. Our producing assets in the Americas. We have Golden Queen in California, which is an open pit hip leach, and we're basically, on, on our, on our guidance basis we're in about the 45 to 54,000, gold equivalent ounces range. Our guidance for this year 1500 to 1800 all in, In the in the operating cash costs in 1850 to 2150 in the oil and sustaining cost in the case of Bolivia, as we've mentioned, this is not a traditional mine, it's a processing facility we buy the ore from third parties and then we process it and sell the the the metal into the market. We go for the cash flow spread that business model of going for the cash flow spread. It's been resilient. It has proven to be cash flow positive every single year, and we've got our 2026 guidance right here on the numbers. We're, we're intending to be producing from 4.4 to 4.9 million equivalent ounces of silver with a cash gross operating margin of about $20 to $35 per equivalent ounce of of silver and a gross margin ratio of 35 to 45. That is, those are the metrics that we use for the Bolivian facility because it's not a traditional mining facility as I mentioned, it's a producing processing facility. The important part is this we buy the ore. We do not toll. We buy the ore. We own the exposure to the metal, and that's how we get the production going forward. Golden Queen and the Golden Queen Mine, we're basically extending the life of mine through exploration. We have, given some high guidance to the market as our 2024. We're soon gonna be giving guidances so we're gonna continue to do that and we're, we'll be in the process for later in the year to do a, an MRE statement about the results of our 2025 exploration campaign, and we're even increasing it into 2026. we're also gonna get started this year. We have the intentions to start looking into the aggregate business in California. This is something very unique that we have in Golden Queen is as we exploit the mine in the gold mine, all of our waste material that, actually we're producing were authorized and have a permit that runs into 2061. To be able to sell this waste as aggregates in the market, so we're, it's a significant amount of tonnage that we have currently have, and it will be continuous to be producing as we go forward. We're intending to start generating that business model on it. on a long term value that in the aggregates as I mentioned that permit runs up to 40 more years basically. In the case of optimization initiatives, we have been expressing to the market that we are looking into mine life expand extension through expanded campaigns of drillings into the into the different veins that we've got, and we're also looking into to extend the current leach pad and even looking into a new leach pad as well, a second leach pad to be included. In order to satisfy the the future growth that we're intending to have at Golden Queen, then we have truth put improvements. We're adding another, an additional of 3 more whole trucks to we're now gonna be having a total fleet of 12 trucks. And we're increasing the capacity for operational flexibility as much as the recovery optimization we're taking steps as well to try to improve our recovery. On the San Bartolome processing facility, it's a, it's a, it's a plant that has steadily been producing close between 4.5 and 5 million ounces steady since it, since it was, commissioned back in 2008-2009 by Coeur Mining, our predecessor. We have, The whole area of Potosi close to our facility, and that's where we're bringing in a lot of or sources as you can tell, mostly the distance, the, the, the farther the distance, the, the higher the grade that allows us to be able to secure contracts even from 5500 kilometers away. On this, this is an interesting chart as you can see how the business supply model in San Bartolome, it's been very resilient and we are basically naturally hedged to the spot prices as we have various types of contracts in general terms we have what we call our own material which is currently being processed out of the FDF facilities, our tailings. We're still at this levels of pricing. We're beginning to even mine the silver entertainings facilities. We also have the current profit share controls. We have a few, private individuals with whom we have gotten profit sharing agreement. They provide us with the ore and we basically process it and take it to the market. We also have the biggest chunk of it is what we call contracts on a fixed price per ton. Which is the light blue, and then we have our spot prices and the spot prices are linked basically to the spot prices in which we keep a cash flow margin with respect to our to to our purchases and, and this is how you can see how the trend is improving and how we are getting a better, cash margin ratio as we move along in the development of our facility. On optimizations we're looking into or supply as much which goes back to the previous chart, then an explanation of how the business model goes with respect to the different types of contracts that we're pursuing. We're also doing, improving our transportation logistics. The reason, there was a question with one of my predecessors about the elections in Bolivia, one of the positive things that happened is that the importation of diesel is now open, so there is no more. let's say restrictions on accessibility and supply of diesel, which is allowing us to improve our transportation logistics significantly as we have basically mentioned and we're also having additional, investments in the company on recovery optimization. We're, we have been increasing our recoveries. significantly now we're into the mid-eighties and we're looking into, finding ways to even optimize those recoveries in the silver ratios. In Golden Queen and as I mentioned in the Golden Queen we have an expanding we're expanding the mineralization to the drilling campaign that we're doing. We're also advancing infill drillings. We're targeting new new extensions of the banks where we think that we can continue to increase our mineral resource and reserves and which will allow us to enhance our long term viability of the company. In the case of San Bartolome, we're constantly pursuing more and more, contracts within the community in the area. There is, there is, additional sources where we can continue to grow for, for a few more years or I would say for a significant amount of years. When we bought this company, San Bartolome it only had 8 month life of mine. It's this is our 9th year and we're still believe that there's an award to continue going for a significant amount of time as well even though we're advancing the exploration into the COMI Bow areas that we got onto the CMI Bow contract that we have have expressed into the market and we're looking to maximize our plant optimization and utilization as well. In our community we're, we're focused a lot in increasing our social license within the city, as I would say, within the city of Potosi, there is a study that has been made that we literally contribute to about 25% of the GDP of the city of Potosi. There's a study that has been done by the University of Potosi and Oxford Economics that that that shows that we're also being making a contributions in various different ways, in both in California and into the local communities as well as also in the communities within. Potosi in Bolivia, most of our employees, lived in the Kern County area, and most of our office gets expensed in the same California region as well as in Potosi. That's, so we're engaged in the in reinvesting into the local community. That's how we're also enhancing our, our social license. Strong cash flow driving a balance sheet, the strength of our balance sheet. This is just for the last 3 years. This has shown how our free cash flow has been generated significantly, which has also increased our pool of liquidity. as of the end, as of the end of last year, we published recently our numbers, and we have a liquidity pool of 177 million of which 167 million equals are basically cash cash equivalent marketable securities, and we still have on drone facilities. at this point of about $100 million currently we've got, on debt we just, we have about $30 million debt on a facility that we have with National Bank in Toronto. Our cash. Significantly we're looking into whether our cash would facilitate in our cash generation whether we can prepay it or not, but that's something to be considered and we also have equipment leases totaling about 15 million which is on on the going side ratio of, mostly because it it arises out of the whole fleet expansion that we're doing in California. So that's that's in that's in a nutshell we have given we have even broader information on the drilling campaigns and the exploration on our corporate presentation but I don't know if I'm happy to answer any questions that anyone may have. Thank you, Alberto. Any questions from the room? This one here. Thank you, Tony Robson Global Mining Research. California's probably not the first jurisdiction most of the investors here would think about for mining. Ah what permitting issues do you have? Is it very tough on environmental legislation, ah, and for your satellite, ah, deposits you're looking at to mine, are they within your mining lease area or will they require new permits? Thank you. Yeah, well, definitely California has very high standards on the environmental side, so you have to be cognizant about that when you're operating in in in there. our mine is fully permitted, and as we expand to the, to the different, we go into the extension of our banks, we still have to go through expanding some of the permitted into the additional areas that we're going through. It's an ongoing process. The, the municipality, Kern County, as well as the state, they're working very closely with us on getting those permitteds moving forward. So we're optimistic it takes a little bit of time, but when you're constantly, when you're now producing it, it is not as long as lengthy as to get it started and permitted as once you're already functioning and operating as just basically been expanding your permits as you go along into extension was that where you were headed on your questions on the mostly on the exploration extension of the banks as we follow it. I would, I, I was thinking that that was where you were headed. Yeah, no, it's, it's working well, although I have to say it's, it's very strict, so you have to be cognizant about those things in, in the regulatory environment. OK, thank you. Any further questions? Maybe one from from me if there's no others. you've obviously got a very strong balance sheet. how are you thinking about capital allocation, within the context of the the cash you have on the balance sheet? Are you thinking about returning capital to shareholders or have you got enough to deploy into the ground? Well, as you saw from our corporate structure, if we were to return cash to the shareholders, us the insiders will be the most beneficial from, from it. But I think that although that is a possibility, I do believe honestly that we have better use of our cash in order to support organic, but most importantly inorganic growth in this area. Our market cap right now it's, it's, a little north of a billion dollars as of last Friday. Canadian, but so we do have a currency that we can use for our stock price in order to do acquisitions, but the cash flow generation that we have, as well as the pool of cash and the available liquidity, it also allows us to look into the inorganic growth through M&A. So. I think that it'll be more creative to the shareholders in general by still focusing on both areas organic plus inorganic growth that's our primary target for the year, OK. And on the aggregate side of the business, have you got any indication as to whether the, the level of the potential revenue you can generate from that? Is, is that a new revenue stream, or is that already, it can become a new revenue stream, but but as we go along, all of our wastes right now. She says they'll probably be between and I'm just we haven't got the exact number, but there's north of 70 million tons even close to 100 million tons. Pick a number $33 a ton for someone just to pick it and tell it and hold it out of the $3 a ton, $5 a ton. And by the time we, if we continue to extend the life of mining Golden Queen for another 8 or 9 years we're gonna be north of 250 million tons of waste materials that we're producing. So it depends. We're gonna have to go into the chemical composition and, and testings and everything, for that, and that will determine how much you can get on a per ton basis, but it may fluctuate whether you can use it for inland fillings on huge construction and infrastructure projects. I mean, the southern part of California, it's humongous. And the consumption that they do, specially out of this unfortunate event of the fires that the wildfires that actually consumed significant areas in in California, there will be a lot of demand for aggregate so. We're beginning to, and we're at the early embryo stages and at the very beginning of looking into putting together a strategic vision as to how the aggregate business can be the most aggretive, but on a millions of ton basis we estimate, and again this is a forward looking statement. We estimate that we may even end up by the time we end the life of the mine with more than 250 million tons for utilization and a permit up until 2061. OK, it's a good note to end on. Thank you, Alberto. I think that it brings to an end the first session. Thank you very much to all the presenters.