Thank you, operator, and good morning, everyone. On behalf of the Torex team, welcome to our Q1 2026 conference call.

Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the investor section of our website. I'd also like to note that certain statements to be made today by the management team may contain forward-looking information.

As such, please refer to the detailed cautionary notes on page two of today's presentation, as well as those included in the Q1 2026 MD&A. On the call today, we have Jody Kuzenko, President and CEO, and Andrew Snowden, CFO.

Following the presentation, Jody and Andrew will be available for the question-and-answer period. This conference call is being webcast and will be available for replay on our website.

Last night's press release and the company financial statements and MD&A are posted on our website and have also been filed on SEDAR+. Also note that all amounts mentioned in this call are U.S.

dollars unless otherwise stated. I'll now turn the call over to Jody.

Thank you, Dan, and good morning to everyone on the line. As this will be my final earnings call as CEO of Torex, I wanted to take a moment here to reflect on how the company has evolved since I joined back in 2018.

Back then, we were a single-mine company with production from ELG and a mine life out to 2024. Media Luna wasn't yet in reserves, and we were facing a potential gap in production between the depletion of the open pits and the start of Media Luna mining.

In the years since, we've extended the mine life of the open pits and systematically stepped up production from ELG underground to ensure stable production until Media Luna came online. We tunneled 7 kilometers underneath a river to connect to the south side of Morelos.

We designed and built and successfully ramped up Media Luna ahead of schedule, and we now have steady production of gold, copper, and silver coming from two mines, with the third on track to come online later this year. We've also invested meaningfully in exploration, adding 10 years of mine life at Morelos, now out to at least 2034, and we have a very clear line of sight to continue to extend mine life far beyond that.

From a financial perspective, we funded Media Luna out of cash flow and a small amount of debt. Not even three quarters after starting up Media Luna, we are now once again debt-free and generating strong free cash flow, announcing a return of capital program for our shareholders for the first time in the company's history late last year, and stepping that up even further with our results announced last night.

We've also expanded our portfolio with the addition of Los Reyes and four early-stage exploration properties, extending our footprint outside of Guerrero and venturing into Sinaloa, Chihuahua, and the United States. As I step into retirement here and Andrew takes the helm, I leave the company a place that I'm proud of and excited about the future under Andrew's leadership as the company continues to grow in Mexico and beyond.

Now getting into it, our quarterly results, turning to key highlights here on slide four. Finished production was lighter quarter-over-quarter due to mine sequencing at Media Luna as we mined through lower-grade and lower-recovery stopes per this year's mine plan.

All-in sustaining costs of $1,917 per ounce were elevated primarily as a result of the lower finished production, higher reagent consumption, and stronger than expected Mexican peso. However, our financials remained very strong with a record AISC margin of 60% for the quarter, as well as record quarterly revenue and adjusted EBITDA.

Despite $165 million of tax and royalty payments to government, we generated $157 million of free cash flow, enabling the full repayment of debt outstanding while also returning $121 million to shareholders through dividends and buybacks during the quarter. Importantly, and critically, all of this success was accomplished safely.

I am so pleased to say that our lost-time injury frequency is once again zero per million hours worked for both employees and contractors, a truly remarkable safety performance. Full-year guidance is outlined here on slide five.

With a return to higher grades and recovery stopes planned in the second half of this year, production and costs are expected to strengthen accordingly. As such, we remain on track to achieve both production and cost guidance for the year, and I'd note here that Q2 production and costs are expected to be similar to those achieved in quarter one.

Moving on to our operational performance on slide six, the processing plant was impacted by two extended periods of maintenance during the quarter. One was planned, and the other was unplanned when we went down in February to replace a faulty batch of bolts, which subsequently created issues with the discharge grates in the SAG mill.

I'm pleased to say that following the repair, the plant has returned to operating above design levels, and in the month of April, we averaged over 11,400 tonnes per day. Recoveries in the chart on the right reflect the lower-recovery stopes that I mentioned, and are expected to remain at current levels through quarter two before increasing in the back half of the year.

Mining rates at both Media Luna and ELG Underground are ahead of plan, as shown here on slide seven. At Media Luna, we were able to achieve consistent production at design mining rates of 7,500 tonnes per day.

This is 9 months ahead of the schedule set out in the technical report, and 3 months earlier than our latest forecast. This is due to how far advanced we were in capital development in 2025, which provided us the operational flexibility we needed.

It's also due to the performance of the ore handling systems, including the Guajes Tunnel conveyor, that the team got working very reliably very quickly. At ELG Underground, rates continued to deliver ahead of their targeted 2,800 tonnes per day, a trend we plan to continue until Media Luna North comes online in quarter four of this year.

Updates on our projects are summarized here on slide eight. At Media Luna North, we continue to make excellent progress on the north adit breakthrough, which is on track for mid-year.

Once completed, ventilation fans will be installed, allowing access to the ore body for infrastructure construction to support first ore production. We have also continued to progress, on plan, the main haulage ramp back to the existing Media Luna infrastructure, with breakthrough on this ramp expected in late June.

At Los Reyes, work on the preliminary economic assessment continues to progress, and on schedule for completion mid-year. The study is contemplating a combined open-pit and underground mine with mill throughput of 5,000 tonnes per day.

Our target is for production between 140 and 150,000 gold equivalent ounces per year, with an initial mine life of at least 10 years. Fieldwork on-site has not yet resumed at Los Reyes, but we continue to be in active discussions with all three levels of government and the local communities to create the conditions to safely, and importantly, sustainably return to the area and resume work.

Finally, before I hand the call over to Andrew, I'll touch on the exploration results we shared last week, summarized here on slide nine. In the Media Luna cluster, we're seeing strong potential to expand resources to the south and east of the mine, with surface mapping suggesting potential continuity between these two zones.

Additionally, infill drilling is being conducted at the mine to upgrade inferred resources to indicated with our year-end update, with the target to offset depletion. Drilling at Media Luna North has recommenced, targeting to expand resources even further to the north of the new mine, while drilling at Media Luna West will resume in the second half of this year, looking to build on the inaugural resource we declared in March of this year.

At ELG Underground, following the discovery of mineralized structures running parallel to the El Limón Sur trend announced in May last year, we've continued to find more of these structures, which importantly remain open along strike and at depth. We also continue to encounter mineralization beyond the boundary of known resources at the Sub-Sill and El Limón West trends.

All of this suggests that we've yet to fully unlock the full potential of ELG Underground, and expect another year of resource expansion and reserve replacement with our year-end update next March. At our regional targets at Morelos, early drilling at Atzcala is giving us a better idea of the structural orientation of the breccia bodies, while drilling at El Naranjo commenced last month.

We look forward to sharing the results of these programs once they are available. With that, I'll hand the call over to Andrew to take you through financials.

Thank you, Jody, and good morning, everyone. I'll start my commentary just turning first to slide 11.

As Jody noted, our all-in sustaining costs for the quarter came in just above our guided range, largely due to lower production and a strong Mexican peso, but also due to the impact that higher metal prices had on our royalties and profit sharing, as well as higher reagent consumption required to process the lower-recovery ore that, again, Jody mentioned. Despite this, our margins remained robust at a record 60% for the quarter, and costs are expected to trend lower through the back half of the year as we return to higher-grade and recovery stopes.

One area we've been seeing cost pressure is with the peso, as I mentioned. We had budgeted the year at an average exchange rate of 19 to 1, but averaged about 17.5 to 1 through the first quarter.

With 50% of our operating costs peso-denominated, we are sensitive to movements in the exchange rate, and in Q1, this added about $50 an ounce to our cost profile. We have placed further peso hedges now for both 2026 and 2027 to provide additional protection and to mitigate against these fluctuations, but we recognize this is a cost pressure we expect will continue for the foreseeable future.

Additionally, a number of our peers have seen cost inflation owing to higher diesel prices, and this has been a common question we've received from shareholders over recent months. I do want to just touch on this on this briefly.

Given our operations are now fully underground and the majority of our Media Luna fleet is battery electric, diesel costs only make up a small percentage of our our cost profile. In in addition, diesel is subsidized in Mexico, and to date has only seen an increase of approximately 15% year-to-date.

For context, if prices stayed at this level through the end of the year, we would see less than a $5 an ounce impact to our all-in sustaining costs. Next just talking briefly about free cash flow, you would have seen that we generated an impressive $157 million for the quarter, and that was after we paid $165 million of taxes and royalties in Q1.

Our outlook for free cash flow remains very strong, and at current spot prices, we're forecasting approximately $650 million of free cash flow to be generated this year. Turning next to slide 12, you can see here this provides a breakdown of our cash flow for the quarter.

Our adjusted EBITDA of $159 million was a quarterly record, of course, supported by high metal prices and record margins. This allowed us to fully repay the outstanding debt accumulated during the Media Luna build, while also returning $121 million of cash to shareholders through both a dividend and a $111 million share of share repurchases.

I'll speak more on on our enhanced return of capital program that we announced last night momentarily. Before we move off the topic of cash flow, though, just as a reminder to everyone of the cash flow seasonality we have, and you can see that here on slide 13.

I know as as the group on the call are aware, Q1 is always our highest cash outflowing quarter of the year as we pay our annual true-up for taxes and royalties, this year amounting to $165 million in total on account of higher metal prices we saw through the course of last year. Q2 will will see our annual Mexican mandated profit-sharing payment, which we expect will be approximately $38 million this year.

Q2 will also likely be impacted by lower sales compared to Q1, just given that Q1 benefited from the sale of inventory on hand at the end of the year. As usual, we expect Q3 and Q4 to be the highest cash-flowing quarters of the year, with these annual payments then fully behind us.

Next, just turning to slide 14, you can see here an outline of our current liquidity position. Despite the significant tax and royalty payments that I mentioned, as well as the return of capital program that we've been executing on, our cash balance grew quarter-over-quarter to $130 million.

We expect this to continue to grow over coming quarters to at least our minimum balance of $200 million, which is our current target. Following the repayment of the final $30 million of debt outstanding in January, we're once again debt-free and had available liquidity of $467 million at the end of Q1.

Next just moving on to capital allocation, and you can see on slide 15 that there are four key priorities for our capital allocation. These are all outlined here.

Firstly, we're looking to continue to invest in in our Morelos property to extend the production profile of the property, and that's supported by $45 million of drilling on the property for this year. We're also investing $100 million of capital to complete the construction of Media Luna North by the end of this year.

Secondly, we're focused on unlocking value across our portfolio of development-stage and exploration properties, including Los Reyes in Sinaloa, and our other properties across Chihuahua and Nevada, while continuing to look for and seek value-accretive M&A. Thirdly, focusing on our balance sheet, growing our financial strength to a minimum $200 million of cash on hand, and that will provide us both operational and strategic flexibility looking forward.

Finally, our our shareholder returns, which we've just enhanced, and I'll dive into that next on on slide 16. As you would have seen last night, we announced a target to return a total of $350 million to shareholders in 2026 through both an increased dividend and continuing to aggressively buy back shares, which is a strong return particularly given where our shares are currently trading.

As I mentioned, at spot prices, we're expecting to generate approximately $650 million of free cash flow this year. The $350 million we expect to return to shareholders represents about 55% of this forecasted free cash flow, or approximately 40% prior to non-sustaining capital expenditure.

The $350 million includes the $121 million returned during the first quarter and builds on the total of $165 million that's been returned to shareholders to date since announcing our inaugural return of capital program last November. With this announcement, our dividend was also increased by 7% to 16 cents per share, implying a forward annualized dividend yield of about 1%.

Our intention with this announcement was to provide more transparency and clarity on the magnitude of capital we expect to return this year. We feel that returning over 50% of our free cash flow to shareholders is a meaningful way to generate value for our shareholders, with the remaining amount being reinvested across other capital allocation priorities in our portfolio.

Finally, before I open up the line for questions, although Jody is not retiring for another month, this will be her last earnings call before I step into the president and CEO seat next month. Anything I say here will not do her leadership and tenure at Torex justice, but I do want to take a moment just to acknowledge Jody publicly in front of the analysts and investors on the line for all she has done and accomplished at Torex over the past 8 years.

She has made a real difference to the lives of so many in Mexico and beyond, and will be greatly missed by everyone across the team here at Torex, as well as, I'm sure, all of our stakeholders, including those on the line today. With that, I'll open up the line for questions.

Thank you. To join the question queue, you may press star, then one on your telephone keypad.

You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys.

To withdraw your question, please press star, then two.

Thank you. Thanks, Jody.

All the best to you. Enjoy retirement.

Andrew, congratulations. Here comes the questions.

Maybe my first question is on the enhanced return of capital program. As you mentioned, you really talk about the intention in terms of capital return in 2026, but there wasn't any mention in terms of what happens beyond 2026.

I guess maybe a question to Andrew, is the intent of the enhanced program to be maintained into future years, or is it something that you would, I guess, look at year-over-year?

Thanks, Cos, for the question, and it's a good question. Our intent with the return of capital announcement last night was to provide guidance on what to expect in 2026.

We will be looking at that program annually to determine what our annual commitment will be each year going forward. Just to note, though, of course, our return of capital program does include a dividend, and that quarterly dividend is expected to be declared every quarter going forward.

That's something that you can expect, and we would maintain in future years. Then in addition to that, we'll be providing annual guidance on what to expect from a share buyback perspective.

Great. Then, Andrew, maybe if you can talk about how you came up with that sort of 55% of free cash flow being returned back to investors.

We've seen from other companies in your peer group, they've talked about 35% return, 40% return. 55% is certainly on the higher end.

Maybe can you talk about how you came up with that number?

Look, I think for us, Cos, what's very compelling is where our shares are currently trading. We're currently trading at a significant discount compared to our peer group, and so it's a very compelling business case to be buying back our shares at this price.

That helps motivate us to be very aggressive in our share buybacks this year. That said, we are looking to maintain in and around 50% of our free cash flow for our own balance sheet, and so we're looking to both return that capital to shareholders, as well as grow our cash balance and liquidity on the balance sheet to deliver on broader capital allocation priorities.

This just felt like the right balance for us given the opportunity for our share buybacks, as well as our broader strategic priorities.

Great. Maybe switching gears a little bit at Los Reyes, likely you won't be able to give me a timeline in terms of when you can potentially return to site, but if you can, that's great.

If not, then could you maybe walk us through, when you do return to site, what can we expect? Are you going to bring drills back?

Are you going to start drilling once again? What can we expect?

Is there a plan in place in terms of what we can expect once you get back to site? Then I guess there's been some news in terms of a change in government in Sinaloa.

The Governor of Sinaloa had recently resigned. Is there any kind of read-through in terms of the asset level and how you view the timeline of your potential return, anything that we should read into it?

Look, I'll take this question, Cos. A few questions in there.

Firstly, just to validate your assumption, Cos, we're not in a position to provide a specific date on when we'll be returning to site. I don't think it's appropriate to put pressure on the team.

We'll make that decision at the right time. That said, though, I'd say our discussions at all level of government, both locally and federally, has all been very positive and constructive.

We're feeling very well supported across all levels of government, and are making positive steps forward to create the conditions to access site. We're hoping to get to site, obviously, sooner rather than later, but the timing would still be to be determined.

When we do get to site, though, our plans are already set. We'll be looking to get the drills turning fairly imminently once we do get access to site.

The drill rigs are actually already on-site. They were not removed from site by Prime when they stood down the workforce over a year ago.

The drills will be ready to turn fairly quickly after access is available. Then we'll also be looking to do work to support advancing our PFS, and so there's various other and sample testing that we'll look to do to be able to support column testing, other metallurgical work.

We'll want to fully assess the initial plans of plant location to make sure that that location makes sense based on geotech conditions, and do further sampling and testing at site. The work will be twofold: both drilling to continue to support the resource base, as well as work to support the PFS.

Great. Then maybe one last question.

Media Luna North, as you mentioned, production to start in late 2026. There's a number of kind of items being progressed at this point in time.

There's the main access ramp, a haulage drift, ventilation. My question is, is there a critical path?

Is there certain items that we need to make sure that you complete on time to hit that target in terms of late 2026 production?

There's a number of key milestones in the plan, Cos, and as Jody mentioned, to date, everything is tracking to plan. I would say, at this point, the key critical milestone, which is imminent here, is the breakthrough of the north vent adit.

It's important for us to get access to additional ventilation to be able to commence the broader ramp development and open up the mine. That's in plan for May of this year, and that will be a key milestone to then start building out the mine.

In addition to that, there's obviously the procurement activities that are underway. Orders have already been put in place, and we've got commitments from those vendors to be able to deliver online with our schedule.

Until that equipment obviously arrives at site, there's always some risk associated with that. As we did with Media Luna, we're working very closely with our suppliers to make sure that they adhere to their commitments to us, and so that work is ongoing.

At this point, everything that we're seeing is supportive of us producing first ore in December of this year.

Great. Thanks, Andrew.

Those are all the questions I have. Jody, once again, thank you for all the years at Torex, and all the best.

Thanks, Cos.

Thank you, operator. I'd just like to echo Cosmos' comments as well.

Jody, best wishes on next steps. First question: great to see the shareholder return program.

With that, the $200 million minimum cash balance seems readily achievable, especially looking to the high free cash flow quarters in H2 and beyond. Is this minimum adequate dry powder to develop Los Reyes, or even for M&A, given cash could provide a bidding advantage on some deals?

Look, Don, I'll take that question again. The $200 million, we see as being a minimum balance that can provide us good operational flexibility as we work through the seasonality in our cash flow looking forward.

As you rightly point out, we will naturally build a cash balance beyond that through the course of this year. In addition, we do have a fully undrawn $350 million revolver.

The combination of where our cash will end at the end of this year and the available credit facility that we have, we feel provides us good flexibility to be able to support our broader strategic initiatives. As we kind of think about M&A more broadly, obviously, if opportunities do come up that are beyond that, we've got lots of debt capacity that we could take on to support the right deal at the right time.

We feel we've got the balance sheet to be able to support whatever strategic priorities we are looking to focus on going forward.

Great.

Just to answer your question about Los Reyes, we'll be coming out with our PEA on that, of course, next month. As we've talked about in the past, we expect capital to be in the region of $500 million, and so that's a level of cash that we can build up very quickly here, and the timing of that would be in the 2029-2030 period, and so a significant period of time here to build cash to be able to support that build, and we're very comfortable with that path forward.

That's helpful. Then looking at Media Luna, given that you achieved the Media Luna mining rates ahead of schedule, is there favorable read-through to higher production this year, maybe even possibly toward the upper end of the guidance range?

There's a potential read-through there, Don, in us being able to achieve mining rates at Media Luna beyond 7,500 tonnes per day, and so that's something that we're working through. Today, I would say assuming a steady state of 7,500 tonnes per day is a good go-forward plan to include in your models and your assumptions.

In terms of overall production, I wouldn't expect that we would be above our guidance range. I think we're very comfortable with our guidance range, and that is, although we're ahead of schedule on hitting the rates at Media Luna, if you remember, I think in Q1, our initial target was to be at 7,000 tonnes per day, and we achieved 7,500 tonnes per day, and so the incremental ore there will not have a meaningful impact on our annual production.

Thanks. Then just as a final question, looking to your exploration update from last week, there was some comments on the prospect of drill target Atzcala.

Are you getting any initial indications from the modest drilling that's been done so far of its potential in terms of a standalone oxide deposit and so on, or is that really something that we need more drilling to verify?

Look, it's too early, Don, to be able to share any specifics at this point. We will have more data that we can share later on this year, but I know we've had discussions in the past about the real potential that we see within Atzcala, and everything we're seeing to date continues to support the potential that we hope we can prove out in Atzcala, but we'll have more data that we can share in the second half of this year once we undertake further drilling.

Great. Thanks again for taking my questions.

That's all for me. Good luck with the rest of the quarter.

Thanks, Don.

Good morning, guys, and thank you for taking my questions, and congratulations, Jody, again on the retirement. Just talking about the plant at Morelos, you guys have contemplated taking it back up to that historical 13,000 tonne per day levels.

Can you just remind us sort of when that decision could possibly be made and sort of what the key factors going into that are?

I can take that question again, Lauren. Good morning, and thanks for the question.

That's work that's underway now. Clearly, in the current gold price environment, the business case is potentially compelling here.

There's work that we need to do both to understand the engineering that's required to bring the plant back up to those historic levels, as well as understanding the broader impact that that decision could have on our go-forward mine plan and resource base. The work we're looking to do through the course of this year is to support us having a discussion and becoming decisional, I would say, in Q1 of next year.

Perfect. That's really helpful.

Then, if we were to factor in or think about factoring in, it would be more like a 2028 timeframe then if you did move forward with it.

I

think

that's a fair assumption, Lauren. Correct.

Then

just a quick question on Media Luna North, when you do tie that in, I just want to confirm that there's no plant downtime and there's no Media Luna mining rate downtime during that tie-in.

That's correct, Lauren. There's no impact to the plant in any way, and no downtime within the Media Luna mine either.

Perfect. Thank you.

That's all for me.

Thanks, Lauren. As