Thank you, operator. Good morning, everybody.

Thank you very much for joining us on Discovery's second quarter 2026 conference call and webcast. As you just heard, I'm Mark Utting, Senior Vice President, Investor Relations.

Joining me today are many members of Discovery's senior executive team. Speaking today will be Tony Makuch, our President, CEO, and Chairman; Alison White, our Chief Financial Officer; Duncan King, our Senior Vice President, Canadian Operations; Gord Leavoy, our Senior Vice President, Mineral Processing; Harold Bird, our Vice President, Mineral Processing; Eric Kallio, our Senior Vice President of Exploration; José Jabalera, our Senior Vice President in Mexico.

We'll then turn it back over to Tony for concluding remarks. Just before we get started, as always, I'll remind you that during today's call, we will be making forward-looking statements.

These statements are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.

For more information, please refer to slide 2 on our slide deck as well as other disclosures on our website. In addition, we'll also be making reference to non-GAAP measures during the presentation.

These measures do not have any standardized meaning prescribed under GAAP and, therefore, may not be comparable to other issuers. Slide 3 in the deck deals with cautionary language around non-GAAP measures.

Lastly, for me, all dollar amounts today will be expressed in US dollars, unless otherwise indicated. With that, I'll now turn the call over to Tony Makuch.

Thanks, Mark. Good morning, everyone.

It's really good to be able to be here. Actually, you know what, I think maybe before we start, we had a really, I think, we we had a had some pretty good results in the quarter.

Things things went went went went well, are progressing well. I I know that, like the there's a lot of stuff hiding in the background that maybe people all don't see and we don't talk about.

A lot of people did a lot of a lot of good work. A lot of people that did a lot of good work, some of their results aren't really shown in this quarter.

They'll be seen you'll be seeing them in in future quarters. What what we talk about and all the all the benefits that we that we see and all the all the results we see, it's really we get the chance to talk about it and and and tell you about it, but there's a lot of really good people working in the company throughout the operations, and they're the ones who did all the good work.

Before we start, thank thank them for for the results, and and we recognize really what what what what everybody's doing. Stay stay tuned.

We got We're going to talk about good things that have happened here, but stay tuned. There's still a long outcome to the end of the story.

Anyway, I'll start with slide 4. This is a slide that we we use a lot in the past to try to, show things in terms of where we are in value creation and talks about our growth to over 0.5 million ounces of gold in production over the next 3 to 5 years.

It looks at our potential for Cordero and what we think we can bring Cordero, 14 million ounces silver production rate, but, on on an equivalent silver equivalent basis, depending on on on silver prices, with significant zinc and lead production there. Definitely a one a world-class silver project in Mexico, just waiting for a permit.

Then looking at a gold business, and and what we're doing, we now believe that, gold pass has a potential to be significantly greater than than than what we show in here. That's a forward-looking statement as Mark talked about earlier.

During this presentation, we will show you why we are confident that this can be achieved. Going to slide 5, and and second quarter was pivotal, and we did have a lot of good work good works, and definitely, we've we've done a lot of progress in advancing our growth plans plans.

Maybe there are three key developments during the quarter that really highlight what we did. First, we completed the acquisition of the Kidd Operations.

Second, we second, we continue to achieve outstanding exploration results. On the exploration results, like we we we originally were putting all in one press release.

Now we've put out three press releases in the last 3 weeks. Instead of lumping them in one, there's so much good information, and we realized we we probably have to start presenting them each individually.

You can see there's actually drill results at all of our exploration targets, and and we expect that to continue. We really think that this is as much of as much as this is a production and business story and and and kind of going-concern operation that's that that's financially viable and as much as this is a growth story, this is really this could be an explorations story as well on on on steroids.

We had a lot of good exploration results, and and we did ramp up our investments in in the quarter. We've had definitely, we're focusing on trying to improve our operations.

Going to slide 6, this looks at the Kidd acquisition, and I think in our last call, we did talk a lot about it about it, but, if if summing it up, the growth we talked about, this is really a big enabler besides the exploration, besides the how the people and what we're doing doing in in in in the Porcupine camp, besides all the the the geology, etcetera, that we see here and the infrastructure in place, the the and and the acquisition of of the Kidd Operations really helps us to achieve the growth in that we're targeting over the timeframe that we plan to achieve it. A big part of it is the Kidd metallurgical site and and and and what we can do there.

We'll probably be talking a little more and more in future as the year progresses in terms of the benefits of that. We're not going to get into too much of the details of that, but, that that that was a significant acquisition that really enables us to move forward.

When when, maybe when we talk about it, there's the current processing capacity there, but for us to grow our operation, optimize Hoyle Pond, Timmins, and Pamour, without this infrastructure and the geography, the land position, the power, the water that comes with Kidd Operations, maybe I can I I I can talk too long about that, maybe I shouldn't. This was a very important acquisition for Discovery.

Slide 7 shows shows what we knew from from the last quarterly call and sort of gives a sort of concept that lays out our plan: construction a new conventional gold circuit incorporate into space that was the A division. You can see that some of the conceptual diagrams of where the infrastructure will go.

We're we're currently reviewing what this circuit will look like, and our advanced engineering design work, and I can tell you that we have moving parts. The exploration success and and sort of our productivity rates that we might design for are there's still a lot being added to the story.

We have a lot of blank pages. We might have a lot of headings on on and chapters written in the book, but all the all the content is is being rewritten as we speak in terms of what we're doing there.

The B circuit that that's that's at Kidd. There is four circuits, as we've talked about before.

The B circuit will continue to be used as a base metal circuit. We're now processing the Kidd Creek material.

These for for for 2026 and and all of 2027. For the C circuit, we are doing test work now, and we expect that this circuit will be used to process Borden ore starting sometime sometime next year.

We we see this this could add sometime something up to 40,000 oz in annual production just in a current form. Where do we get that from?

It it will add 2,000 tons a day of added availability at Dome. We can see improved metallurgical recoveries at at all at at at at the the ore's processed at at at at the Dome mill currently, plus we think we're going to get an improvement in recoveries from Borden, right?

It also gives us the ability to process higher levels of Borden ore at at Kidd. Maybe it gives us the ability to increase productivity from Borden because we were limited how much Borden ore could be intermingled into the into the gold circuit at at Dome.

With with with the Kidd met site, we also investigated future plans for the D circuit, but goal would be to have the TVZ and/or other materials processed here. We we still have a lot lot lot of work there, but really really an enabler in in a lot of ways.

Slide 8 looks at the exploration. I mentioned we had three press releases of the last 3 weeks, all with excellent results.

Eric's going to talk about this later. I'm I'll just focus on a couple of things and and maybe highlights.

We're we're excited about Pamour. Based on recent drilling and, tied into into past drilling, we we've established that the mineralizing system over is we've identified over a strike length of more than 4 km.

The system remains open in all directions and at depth. We we've talked previously about the depth potential in in in this region of the camp.

In terms of depth of Hoyle Pond, where it's down to 16th, 2,000 m, I should say, and and and and depth that was at the Hollinger project, which is on strike on the same system, it's not it's not it's not a it's not a mine that we have, but where it was mined down to 5,000 feet. There's a significant upside here.

We're currently working on a mine redesign for for the Pamour pit, and and we'd expect Pamour to become a much larger producer. With that, as I talked about earlier, in terms of the processing capacity of what we might build at Kidd at at Kidd A circuit to to support a much larger open pit operation here.

The other point though I'll make is that, Dome is the second-large open pit operation we expect to be able to bring online. It has transmission growth potential, and by by, what we do at Kidd with with the with with the Kidd A circuit and being able to to move Pamour there, this enables the Dome mill in its current form to be used to process and to to start the the Dome open pit.

This is, again, this this is all future-looking stuff. We we do also have longer-term the Hollinger-McIntyre's potential first large-scale open pit.

Again, there's that that that that's maybe we just we we just start with Pamour and then see how Pamour goes to Dome. We we truly believe that the day may come when Discovery operates three of Canada's largest open pit gold mines, all located in the Timmins camp.

Going to slide 9, it looks at our Q2 capital expenditures. As expected, our CapEx went up in Q2, totaling $86 million.

That reflects our our progress on on, on a number of fronts. At tailings, we're advancing our tailings project at Dome, to build up our tailings capacity.

We've we've continued to do pre-stripping at Pamour. Our goal is is is to to bring Pamour to commercial production.

We're investing in new fleets, equipment, and infrastructure at both Hoyle Pond and Borden. We, we expect to see further progress and further investment in in in in CapEx over the year, etcetera.

That that's been our goal here to invest it back into these operations to build, to not only build production, but also but also to to improve the operating performance, not just growing production, but improving performance and reducing costs. Unit costs, I I maybe I should I should I should highlight that better.

In terms of slide 10, it highlights our our Q2 operating performance. Again, on this slide, I'll leave it the final financial results for Alison to review, but I'll say that virtually every financial metric improved substantially from last year's second quarter.

We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both period prior periods.

Speaking of record results, we achieved record gold production in Q2. Production increased over 10% from the previous quarter.

Duncan and Gord will get into the details, but the increase was largely largely due to higher throughput. Key highlight for the quarter was that both mining and milling rates showed strong growth at every operation.

Finally, for me in in this part before I pass it on to to Alison, slide 11 shows our 2026 guidance. Again, we'll tell you that we we're tracking well to achieve all of our guidance for the year.

With that, I'll turn the call over to Alison White, our CFO. Thanks.

Thanks, Tony, and good morning, everyone. Overall, it was another solid quarter, reflecting the continued momentum that we built in Q1 and certainly that we've continued to build over the past year of operations.

We had robust revenues during Q2 of $319 million, an increase of 12% quarter-over-quarter, primarily reflecting higher ounces sold and the impact of the Kidd Operations from the closing on June 1st, which did contribute $30 million to revenues during Q2. Revenue has increased steadily since the same quarter of the prior year, our fourth consecutive quarter of growth, driven by the operational team efforts to lift production and by higher gold prices over the same period of time.

We've moved more tons during the quarter compared to the prior quarter at a lower cost per ton, coupled with higher number of ounces sold during the period and partially offset by a planned reduction in grade. As a result, cash costs per ounce were $1,387 per ounce sold.

As we've said before, we expect unit costs to be the highest in the first half of the year and improve during the second half of 2026 as production and sales volumes build. All-in sustaining costs averaged $2,154 per ounce sold, reflecting expected higher sustaining capital expenditures, partially offset by the lower cash costs.

The ramp-up of sustaining capital reflected capital development and infrastructure improvements at Hoyle Pond and Borden, additional deliveries of new mobile equipment, and construction work at the tailings TMA 6 project. EBITDA of $170 million was similar to the prior quarter, as the contribution from the Kidd Operations offset the decrease in the average realized gold price.

That said, and similar to my comments on revenue, we've carried strong EBITDA momentum from last year. Free cash outflow of $11 million reflected the ramp-up of our capital expenditures program and the impact of $56 million in working capital changes, reflecting accelerated payments of accounts payable prior to a new system implementation that occurred at the end of the quarter, funding of the Kidd Operations that were offset by the first month's impact where no cash was received for Kidd revenues in June due to the timing of the receipts in the month following for sales according to the new offtake agreements.

Discovery deployed $86 million in capital expenditures to further advance the asset base at Porcupine, consistent with our capital allocation plan and toward our vision of reinvesting in the business to build value over the long term. Operating and free cash flow reflect the reinvestment in the business through the company's capital expenditure programs and the impact of working capital described earlier.

Let's move on to the next slide to review net income and adjusted net income. On an adjusted basis, earnings were $92.3 million or 11 cents per share, compared to $82.7 million or 10 cents per share in the prior quarter, and $28.4 million or 4 cents per share during Q2 2025.

The primary differences between net income and adjusted net income during Q2 2026 included the exclusion of a one-time deferred tax expense resulting from a change in the discount rate methodology from the acquisition date fair value for the Kidd acquisition subsequent to remeasurement, which had a 2 cent impact. TSA and other one-time costs had a 1 cent impact.

The purchase price allocation adjustments related to the Kidd acquisition for the fair value also had a 1 cent impact. Finally, another cent for payments to First Nations in relation to the closing of the Kidd acquisition and reclamation expenses for non-operating sites.

To summarize, adjusted earnings were up quarter-over-quarter and nearly three times from only 1 year ago when the company initiated operations through the acquisition of Porcupine. Let's turn to the next slide to review our capital priorities.

First, we are actively investing to drive future growth. Our capital spend program is robust during the current year, with $195 to $235 million planned for growth capital at Porcupine, including an additional $25 to $35 million for capitalized exploration, and $120 to $165 million planned for sustaining capital.

The capital spend program includes replacing equipment, expanding mill capacity, and working to enhance future production levels through exploration and conversion drilling across the business that continues at a rapid pace. Second, we are strengthening our balance sheet.

Despite the period of reinvestment that I just spoke about, we had over $600 million in liquidity at the end of the quarter, with $364 million in cash, and since the close of the quarter during July have upsized the company's revolving credit facility to $400 million, bringing total current liquidity to over $750 million. As we look to continue to expand and grow, our financial strength will be fundamental to our success.

We've continued to build on the momentum that began last year across all of our key financial metrics. Revenue and EBITDA have remained robust each of the last four quarters, and equally, proved strong earnings generation.

Let's take a look at our liquidity position on the next slide. Discovery's cash balance totaled $364 million at the end of the quarter.

The gold price environment translated into $130 million of operating cash flow, partially offset by the working capital adjustments and continued capital investments that were covered earlier. This leaves us with a strong balance sheet and the financial flexibility to fund our capital programs and advance our strategic priorities that underpin our vision with confidence.

I'm now going to pass the floor to Duncan King, our Senior Vice President of Canadian Operations.

Thanks, through. I'll discuss our production numbers and then ask Gord Leavoy to review our processing performance.

During Q2, we achieved record production of 67,300 oz, 12% higher than in Q1. Gold poured and gold sold were both 66,000 oz.

The increase in production was due primarily to higher tons processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of mix mill feed.

We had a higher proportion of feed from the open pit sources in stockpiles. As Tony mentioned, a highlight of the quarter was our mining rate, which increased at every operation.

We mined 1.1 million tons during the quarter and ended the quarter with 14 million tons in stockpile. Site-level operating cash costs averaged $1,878 per ounce, a 2% improvement from Q1.

Site-level AISC has increased to $2,028 per ounce, with the increase entirely due to the pickup in the sustaining capital. You may recall we were below plan for sustaining CapEx in Q1, mainly due to the timing for the delivery of our mobile equipment.

We made up for a lot of that in Q2. I'll now call on Gord Leavoy to talk about the milling.

Good morning. We milled 904,000 tons in Q2 2026.

That was up almost 30% from the previous quarter. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2, but overall, the mill performed much better for the quarter.

We exceeded 11,000 tons per day on 49 days in Q2, and we exceeded 12,000 tons a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per ton, 14% better than in Q1 and just slightly higher than our best quarterly average to date of $21.20 per ton in last year's third quarter.

I'll now turn over the call to Harold Bird, Vice President, Mineral Processing, to discuss the Kidd Operations.

Thanks, Gord. Good morning.

Overall, Kidd Operations had good performance in the first month since its acquisition, contributing a positive revenue of $30 million versus production costs of $19 million. Kidd's growth capital primarily related to tailings buttressing and mill modifications to support the processing of Borden ore, which is targeting to begin in the first half of 2027.

Further study work has commenced to expand the Kidd mill to process Pamour in future years. Kidd Operations continues to be a safe, reliable operating mine that currently has a total reportable injury frequency rate of 0.

I'd now like to turn the call over to Eric Kallio, our Senior Vice President of Exploration.

Hey, thank you, Harold. Good morning, everyone.

I'm on slide 18, and happy to say there's been another good quarter for exploration, with excellent success at operating mines and new growth projects. With this in mind, there's a lot to look at, but I'll start here with Pamour, where we drilled another 47 holes, continuing to gain some very exciting new results.

As shown in the image, the main focus here has remained on three main targets, including the main pit, Pamour West, and the North Contact Zone. Additionally, we added a new target into the mix.

It's called QR Trend, which is located west of the main pit. Results for each of the areas are indicated extremely positive, with some of the best results seeming to come from the main pit, including highlights of 3.05 over 30 m and 2.08 over 2.08 over 24 m.

Additionally, we continue to see strong results from the Pamour West and North Contact areas, including several holes with multiple zones at excellent grades and widths. Then finally, we have the QR Trend, where we're very happy to report a high-grade result of 17.36 g/t over 5.9 m in the very first hole drilled, 200 m west of the current resource.

I now turn to my next slide, number 19. You see the first two images, providing different angles for the areas drilled, with this first one looking to the north and focused on the south side of what's called Pamour Trend.

Key things to know here are the main pit and Pamour West areas, which are on the central and left sides of the slide, as well as the overall size of the target area which we're looking at here, which at this point measures a little over 4 km long and at least 400 m deep. Also notable is the very shallow depth of drilling to date in both areas and the large area still remaining to be tested below and between.

Then turning to the next slide, which is number 20, you see a view looking to the southwest, providing a better view for the north side of the trend. Key things to know here would be the current resource pit, which sits in the background, as well as all the intersections in the North Contact and QR areas, which sit directly to the north.

Also provided here is another good angle of the Pamour West area. Given all the above, we're very pleased with progress to date at Pamour.

Drilling is continuing here with four drills. Additionally, work has now begun on a new resource update, and on track for year-end, what we believe will be a very positive result.

Then going on next to slide number 21, we see the Dome, which is another project which we believe has a lot of potential. As previously described, Dome is a historic mining property, which already has over 17 million oz mined, and where we have a resource of over 11 million oz.

We're also now working to upgrade and extend for an updated estimate this year. As indicated on the image, all the new drilling is in the area surrounding the current resource, with focus on areas to the southwest, north, and northeast portions of the property, with results continue to look very encouraging.

Drilling in the southwest portion of the property, including nine holes to evaluate mineralization near the south limits, and continue to indicate excellent grades and widths at very shallow depths. Additionally, we've had eight more holes in the north part of the property and under north wall of the pit, which were also very successful with multiple excellent intercepts, including a highlight of 9.09 over 17.3 m.

Then finally, we had one new hole to the northeast, intersecting a quartz vein near the east limit and containing very high grade assay of 278.48 g over 1.1 m. Then turning to my next slide, 22, you see another image related to Dome, which provides two different viewing angles across the target area and a little more detail on the new results, with the one on the top covering the south part of the pit, looking northwards, and the other covering areas to the north and looking west.

Key things to know here would be the red and green outlines, which represent current pit shells and underground workings, as well as the shallow depth and excellent grades and widths in both areas to remain open for future testing and expansion. With this, I'll conclude by saying that similar to Pamour drilling here is looking very good, continuing with two drills.

Work has also now begun on a new resource update, and on track for year-end. Then turning on to my next slide, 23, we see the TVZ, where we also have very good progress.

As described in the past, TVZ is a significant zone of mineralization in the southeast part of Hoyle Pond, that was partially drilled and defined by past operators, which for a main infill drilling to support a maiden estimate for later this year. Shown on the screen are two different angles on the deposit, with both being long sections and providing different levels of detail.

Turning to the one on the left, you see more of an overall view of the size and shape of the zone, as indicated. Looking at a large northeast-trending structure just south of the mine between the 850 and 1,700 levels, and where mineralization is contained mostly in a series of lenses that are highlighted here in a variety of colors.

Also important to know here on this slide is close proximity of the zone to current mine workings and location of various drill platforms, including 1210 and 1680 levels, which we have been using for most of the drilling to date. Referring now more to the right-hand side, you see details for the new drilling, which, as indicated, has been focused really on the 1210 and 1680 levels and looking very positive.

Just to give you a few examples, what we're seeing basically looking at values of 5.13 over 18.2, 7 over 16.9, 5.7, 5.17 over 21. Important to know that all these intersections are similar to or better than previously drilled holes in these areas.

Aside from the above, I'd also like to point out, as part of the latest program, work has also initiated to collect samples for metallurgical testing from holes near the 1210, with a total of four samples now collected and shipped out, with results expected later this year. Given the above, we're very happy with progress so far.

The program is continuing with three drills on the 1210 and 1680 levels. Turning now to the next slide, which is 24, you see Owl Creek, where we completed another 10 holes, and continue to confirm and expand mineralization near the Owl Creek pit.

Just for context, the Owl Creek pit is located 1.5 km west of Hoyle Pond mine, on the south side of the Hoyle Pond belt, which is the same contact that hosts the mine. That pit, as well as two underground ramps, which you see here on the image, were both developed by Falconbridge Gold in the 1980s.

Shown on the screen are two images, with the one on the left being a plan of the drill area, and the one on the right being a long section, providing more details. Turning to the left, you see the new drilling targeted two main areas, on the east and west sides of the pit, and continued to obtain very positive results, with some of the key values on the east side being 7 g 7.09 over 17 and 6.35 over 9.4.

Highlights to the west: 4.72 over 24 and 19.35 over 5.4. Turning now to the right side, you see a view looking northwards across the zone, again, another angle on the new results, and showing the overall pattern of holes going to depth from west to east.

Important to note here is the holes on the left are the ones drilled directly below the pit, and the ones to the right are what we call hinges of wide high-grade zone. Also important to note here is what we think is very good continuity between the areas, and limited drilling, which exists below the 650 m level and in areas going to the east.

In terms of current activities, drilling's continuing here with two drills on site, focused on further confirmation, expansion. Additionally, in light of the good success, work has now been initiated on a new exploration ramp from Hoyle Pond mine, which will allow more detailed drilling both here and in the areas between.

Although not shown in the image, the ramp will enter the zone from the east side near the 300 m level and allow quick access to the zone. The expected completion date is in Q3 2027.

Then turning to slide 25, we see an overall view of the Borden mine, where we have also been very busy. As described in the past, Borden is located west of Timmins and centered on a major east-west trending shear zone, called the Main Zone, which has now been traced and partly mined for a distance of over 4 over 2 km.

In terms of recent exploration, pretty much all work has focused on the far east side and on extending the Main and East Lower Zones from platforms underground near the 585 level, as well as from surface northeast of the Main Zone. In terms of results, they have all been very positive, with excellent grades and widths, both within and outside the current resource shapes in both zones targeted.

With some of the key highlights from underground being levels such as 9.16 over 29.0 m. The highlight of the program, I think, a new intersection on surface of 6.34 over 8.7, 500 m down-plunge from the inferred resource.

Then moving on to slide 26, I have one more image related to this area, which is a 3D looking northwards across the area drilled, and showing more detail on all the new holes. Key things to know here might be that all the holes were drilled from the 585 level, which is the green line at the top of the drawing, and targeting at and beyond the current limit of the inferred resource, which is shown here in light blue.

I'd also point out location for the new surface hole, BO26-01119, which is in the far left side and located 500 m from the current resource. With this being my last slide, just like to say in summary, things still continue to go well, and a lot more to come.

With that, I'll pass over to José Jabalera, our VP Corporate Affairs and Sustainability in Mexico.

Thanks, Eric. In Cordero on July 24, we received an official visit from senior-level SEMARNAT officials, with very good outcome from the project and from the visit.

We right now are in the final stage of the environmental permitting process. At the same time, we're continuing with the studies to update capital and cost estimates, as well as more detailed studies regarding water, impact, and power for the project.

I will pass to our CEO, Tony Makuch.

Thanks, everybody. I guess it is the last slide, slide 28.

I think we get a sense there's a lot of things going on, whether it's operating performance, exploration, and development, a lot of exciting projects here. Really, this is a slide that maybe we put together when we first started with the acquisition of Porcupine with Discovery, we tried to show how we grow to well over 0.5 million ounces a year.

By the way, this doesn't include Cordero in here, which is even over and above that. You can see from our quarter two results the exploration, the acquisition of Kidd, our continued investment in operations, we can see how we're demonstrating what's going on here that we're taking the vision from concept to reality in terms of what we can build in Porcupine and build in Discovery as a whole.

Looking at the slide, Pamour, as we talked about, now expected to become a much larger mine than the 150,000 oz a year producer outlined in last year's technical report that we showed 150,000 oz a year up to 2047, I think, in the report. As I mentioned, we're working on a mine redesign for Pamour and a new large-scale processing plant at Kidd to support this.

This then unlocks the Dome mill for Dome mine, which at current levels of grade could produce over 200,000 oz a year. We'll give you a better sense of what that looks like later this year when we update the resource.

We also have growth potential at Borden, as outlined by Eric in terms of what he sees, plus the processing, as we build processing capacity for Borden and then looking at the investments we're planning. Then there's TVZ and Owl Creek at Hoyle Pond.

We planning an initial report, NI 43-101 resource for TVZ later this year, and we'll continue working towards a resource at Owl Creek. There's still a lot of work to still be done.

There's probably some other exploration targets, I know there is, that we haven't even talked about here. There's much more to our story lying ahead of us and a lot of exciting things to do.

I think one of the things though that's also important, and maybe we should acknowledge, and Harold talked about the safe performance at Kidd and that TMIFR of 0, and I know there's been a significant improvement in our TMIFR in all of Porcupine operations. It's down to one, effectively, we're running mines here, underground mines and open pit mines and processing plants in the Timmins camp, that's safer to work there than to be working at Walmart or working at Canadian Tire.

We're really proud of that, and we want to maintain that as we go forward. Anyway, with that, I want to thank everyone for being on the call, and we'd be happy to take any questions.

Hi Tony, Alison, Mark, and team. Thanks for taking my question.

I guess I'll kick off the first question with free cash flow. Free cash flow turned negative this quarter, but for very good reasons, right, for timing of cash flow from Kidd and other items.

I guess my first question is, can you remind us what are some of the upside for the new enterprise resource planning system that was implemented and how that would help with further operational optimization from here?

Larry. I'll be happy to take that question and talk about the benefits for us in implementing the new system.

You may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont. The company then simultaneously set up its own instance of SAP.

That SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go-forward basis. It's also going to obviously be in our full control since it's a Discovery-implemented instance that has been set up with the full complement of everything that we typically look at and that we typically like to track.

We are anticipating that we will see some additional value going forward. We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing and will be able to provide some additional clarity on all the growth that's coming in the future.

Really in summary there, effectively, we've been operating under the code of accounts and the accounting practices that were limited to how SAP was set up under Newmont. We can now implement it more our way, as Alison mentioned.

We have a different view on our management accounting and how we can count for things. We see that as a big value driver in terms of maybe as I say, we can turn the finance team, the accounting team into profit centers for the company.

Yeah. No, for sure.

Good to hear that things are doing the Discovery way, doing the best way possible. I guess, kind of on that note as well, Tony and Alison, can you remind us what's kind of your view for Kidd Creek both near-term and longer-term?

I know this quarter, because of timing of cash flow, the operation kind of had a little bit negative free cash flow. For the rest of the year, should we still expect positive free cash flow, and how does it help with the operation or hitting that 500,000 oz in the near to medium-term?

Larry, this is sort of the first and only month that we'll see this cash flow differential that we did see because of the timing of the offtake agreements and the way that the sales agreements were structured. The cash is remitted back to the organization in the following month after the sale.

Because the transaction occurred as of June 1st, this quarter, because it ended on June 30th, we do see that gap in terms of sale versus cash remittance. On a go-forward basis, there will always be a 1-month lag, but it will be a constant 1-month lag, and we will have that catch-up in terms of cash and sales on a go-forward basis.

We'll still be a month behind in cash collection, but that will be something that you'll see roll into the overall financials on a go-forward basis.

Effectively, as Harold mentioned, that we had almost $30 million in revenue with $19 million in costs. The cash is going to come in in a month later in term based on the offtake agreements and how concentrates get moved, but it really was positive ongoing.

Amazing. Sounds good.

Thanks again, Tony, Alison, for taking my question, and congrats on a strong quarter.

Listen, thanks, everyone, for participating in today's call. You've heard we've got two key parts when we talk to the market that we address.

One is the significant improvement you're seeing in performance as we go quarter-to-quarter and, in this case, particularly compared to last year's second quarter. We also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today.

On that, second quarter was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call when we can tell you about how much further we've come. Thanks very much.