Operator: Good morning. And welcome to the conference call to discuss Coeur's Second Quarter Results. All participants will be in a listen-only mode for the duration of the call. And should you need any assistance today, please signal a conference specialist by pressing the star key followed by 0 on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To withdraw your question, you may press star, then 2. Note that this event is being recorded today. I would now like to turn the call over to Mitchell J. Krebs, president and CEO. Please go ahead.

Mitchell J. Krebs: Hello, everyone, and thanks for joining our call to discuss Coeur's second quarter results. Before we start, please note our cautionary language regarding forward looking statements and refer to our SEC filings on our website. Starting off on Slide 3, Core's record second quarter results were driven in large part by the first full quarter of contributions from the recently acquired New Afton and Rainy River operations. Quarterly revenue passed the $1 billion mark for the first time in the company's history on the way to record quarterly adjusted EBITDA and free cash flow. Lower prices inflationary pressures, below planned grades at 3 of our operations and the pace of production ramp-ups at Rainy River and New Afton were all headwinds during the quarter, which was also $140 million or $0.10 per share noncash impact to second quarter EPS and EBITDA from the acquisition accounting driven by Rainy River stockpile inventory that is worth highlighting. Off the back of nearly $400 million of quarterly free cash flow, our ending cash balance exceeded $1 billion for the first time in history, and is expected to continue increasing rapidly turning the balance sheet into a significant source of strength. We intend to continue deploying this cash into record levels of exploration investment and into our organic growth projects to help us deliver peer leading ROIC. We also showed in the second quarter our commitment to returning capital to shareholders as we began to more actively repurchase shares under the expanded $750 million buyback program in the second half of the quarter. And we paid the company's first dividend in 30 years. The company's growing financial strength leaves us well positioned, which is expected to further increase with a significant second-half weighted production and cash flow profile. Hitting on a couple of second quarter highlights, Rochester in Nevada achieved an important milestone with a new quarterly record of 6.8 million metric tons crushed, a 15 percent increase over the prior quarter. This progress establishing crusher consistency and predictability has been a true team effort that deserves acknowledgment. As Mick will walk you through, the team also completed the Phase IIa leach pad expansion during the quarter. Leaving Rochester poised for very strong second half silver production given the significant number of ounces placed close to liner. It was also great to see Wharf bounce back with a strong quarter as they returned to more normal operations after recovering from damages to the crusher last November. We issued an exploration update last month highlighting the ongoing success we are having at our 2 Mexican operations. Recent results at Palmarejo with the continued emergence of to the east and at Las Chispas, with drilling in the gap zone and at other new targets underscores the continued impact of our brownfield exploration investments on our efforts to drive higher returns on invested capital. While our 5 legacy operations remain on track to deliver their full year guidance, We recalibrated New Afton's and Rainy River's guidance ranges for the 9 months of Coeur's ownership in 2026. The Rainy River adjustments reflect a more gradual expected ramp up in underground production rates this year than previously assumed and the new Afton modifications reflect the rate of cave growth we are seeing since the C zone development was completed in April. Mick will provide additional details on the great work being done to safely and sustainably deliver the performance that we expect from these 2 new assets. Meanwhile, I am pleased to report that our post acquisition integration efforts are advancing according to schedule. Before turning it over to Mick, our addition to the S&P 400 MidCap Index announced on June 8th was another example of how our U. S.-based North American platform of 7 well balanced operations offers investors liquid high quality exposure to the positive long term outlook for gold, silver and copper. Mick, over to you.

Michael Routledge: Thanks, Mitch. Coeur's operating results the second-quarter included several important developments that bode well for the strength of our enhanced portfolio as we look forward to the second half of 26 and beyond. As Mitch mentioned, we saw lower than planned grades at Kensington, Rochester and Palmarejo which are expected to rebound in the second half consistent with our guidance. A strong second half tailwind at Rochester aside from the higher planned grades is the impressive progress of the crushing circuit. Which continues to deliver strong, more consistent performance. Of the record 6.8 million tons crushed in Q2, that Mitchell mentioned, approximately 97 percent ran through all 3 stages of crushing highlighting the enhanced efficiency and flexibility of the operation as the crushing train moves further into a consistent operating rhythm. The pace of construction for Phase IIa of Leach Pad 6 accelerated during the quarter. Some of you may recall the initial flush of silver and gold production in 2023 following placement and irrigation of first ore close to LiDAR on Pad 6 Phase I. With Phase IIa ore placed exceeding 4 million tons through July and growing we expect a similar spike to underpin strong second half 26 production at Rochester. Series IIb of Pad 6 is well on schedule and we expect it to be completed in the fourth quarter of this year providing additional capacity close to Lena. Turning briefly to Wharf, the team continued to exceed expectations and complete all repairs ahead of schedule following the fire incident in the crusher building last November. 2 contract crushing units augmented ore placement rates on the pads as the repaired wharf crusher achieved full capacity in May. Contract crushing has been fully demobilized, and normal operations have now resumed. Moving to the Canadian assets, we have continued to work closely with the New Afton and Rainy River teams over the last 4 months on integration and mine plan optimization. At New Afton, the primary focus remains on prioritizing healthy cave growth. Executing disciplined cave draw management in these early days, the most important factor we control to protect the long term health and productivity of C zone. We increased tonnage draw from the western portion of the cave at similar grades to the North draw points and we are still limiting tonnage from the higher grade eastern portion of the cave following completion of its construction in April. Daily mining rates during the quarter averaged approximately 12 thousand tonnes per day. We are pleased to report that we saw mining rates tick up further in July, including reaching 14 thousand tonnes per day during the last week of the month as we have begun to increase draw rates in the West. We expect to achieve targeted throughput of 16 thousand tonnes per day early in the fourth quarter compared to the end of the second quarter as assumed in the original New Gold 2026 budget they approved in late last year. As a result, we have refined New Afton's partial year guidance to reflect this prudent approach is summarized on slide 12. At Rainy River, solid production from Phase 4 of the open pit drove free cash flow of $123 million the highest free cash flow of any mine in Coeur's long history. Open pit mining, processing and underground development all performed well during the initial full quarter of Coeur's ownership while waste stripping activities on Phase 5 of the open pit remained ahead of schedule. It is important to note we kept the mill full all quarter via the operations significant stockpile inventory. In the third quarter, we will be building up a new stockpile to provide that important level of flexibility with a goal of keeping the mill full at all times. Second quarter production was affected by lower than planned underground mining rates. Which reflected some short term execution challenges with the underground mining contractor I am pleased to report that after assuming control of the operation and addressing the gaps we observed, underground mining rates are now on the rise as evidenced in the performance improvements we saw in July. The gaps did require a relatively modest amount of additional capital and operating costs. That Tom will highlight. However, we are expecting a very quick payback Just to give you a sense, after averaging 2.3 thousand tonnes per day in the second quarter, underground production rates jumped over 40 percent to approximately 3.3 thousand tonnes per day in July, and we now expect to achieve our target of 5 thousand tonnes per day by year end versus the third quarter as assumed in the original New Gold 2026 budget that they approved late last year. Revised partial year 2026 production guidance at Rainy River is shown on slide 13. Which reflects this slightly slower assumed ramp up of underground mining rates. With that, I will turn the call over to Tom.

Thomas S. Whelan: Thanks, Mick. Turning to slide 9, I will briefly run through our consolidated financial results. Despite being our second lightest expected production quarter this year, our balanced 7-asset portfolio produced quarterly record financial results off the back of the inclusion of our first full quarter of our Canadian assets. Some of the many quarterly records included record quarterly revenue of $1.1 billion a 27 percent increase quarter over quarter. Record EBITDA of $478 million despite the $141 million non cash expense related to Rainy River's fair value uplift of the short term stockpile must flow through EBITDA, the P&L, and our reported CAS number. And record free cash flow of $388 million or more than $4 million per day, an increase of 45 percent versus last quarter. Our Canadian assets delivered 45 percent of overall quarterly free cash flow, approximately $175 million despite both assets being in ramp up mode. Our second quarter results did see lower realized gold and silver prices than in the first quarter, particularly in June. We are also seeing some signs of cost inflation, specifically diesel cost, as shown on slide 11. Slide 8 illustrates the tremendous impact of these accelerating cash flows on our balance sheet. Cash of $1.1 billion at June 30 represents a doubling of the balance versus year-end 2025. We paid out approximately 45 percent of our second quarter quarterly free cash flow with $110 million of buybacks through June 30, the payment of an inaugural $0.02 dividend and the elimination of $39 million of our higher cost capital lease debt. We exited the second quarter with liquidity of over $2 billion, leaving no doubt about our balance sheet strength. With expectations for significantly higher production during the second half of 26, Coeur is poised to deliver even higher quarterly free cash flow for the remainder of the year. CAS on revised guidance and our updated forecast pricing, of $4 thousand per ounce of gold, $60 per ounce of silver and $6.00 per pound of copper, we expect to generate 2026 EBITDA of approximately $2.3 billion and free cash flow of approximately $1.5 billion despite significantly lower assumed metals prices in the second half of 26 and only 9 months of lower than originally planned contribution from New Afton and Rainy River. What an amazing story. I wanted to highlight the key changes in our updated guidance on slide 21. We have tweaked our overall 2026 CapEx guidance at Rainy River to reflect $45 million of Phase 5 capitalized stripping costs previously guided as an operating cost and $25 million of expenditures related to underground development, equipment and infrastructure to assist with the gaps Mick and his team identified. Revised CapEx guidance also includes an additional $15 million at Silvertip for 2026 pre feasibility study and related costs. Cash taxes were guided downwards to reflect lower assumed metals prices and lower Canadian taxes. Amortization guidance was also reduced as we completed our initial purchase price allocation for the newly acquired Canadian assets. Adjusted CAS guidance for gold and copper at New Afton increased as a result of the lower expected production. However, it is important to note that we did not see an overall increase in total operating costs at New Afton. Adjusted gold CAS guidance at Rainy River also increased as a result of the lower expected production. We are also expecting a 10 percent increase in total operating costs or approximately $30 million during 2026, for additional labor, rental equipment and maintenance to address the gaps Mick and his team identified. I did want to spend a minute on the acquisition accounting related to the short term inventory, including the significant short term stockpile at Rainy River. That we acquired at the transaction closing. The fair value uplift of the acquired inventory as required under U. S. GAAP is an important, pointy-headed accounting matter to clearly understand given the magnitude and the pervasive impact it has on our financial results. While the impact is non cash, the full year total will be $244 million at Rainy River, and $20 million at New Afton. We want to emphasize this non cash amount must be included in our EBITDA net income and CAS. During the first quarter, approximately $85 million of the fair value uplift hit our EBITDA, net income, and CAS. The second quarter impact was a further $140 million approximately $0.10 per share and the remaining $38 million is anticipated to flow through during the third quarter as we expect to have depleted the remaining acquired short term stockpile at Rainy River by the end of the quarter as Mick mentioned. To give a better sense of the order of magnitude of this non cash impact on our CAS, the second quarter impact at Rainy River was $2,036 per ounce, of the total $3.79 thousand CAS per ounce. And on a consolidated basis, it represented $834 per ounce of the total $2.44 thousand CAS per ounce. I hope that made sense, and I will get off the accounting soapbox. We remain extremely excited and proud of this platform we have created as a unique North America only precious metals producer with a heart of silver. We are set up for a strong second half of free cash flow continued capital returns and cash accumulation on the balance sheet as we continue to deliver on our strategic plan. I will now turn the call back to Mitchell.

Mitchell J. Krebs: Thanks, Tom. Before opening it up for Q&A, our key strategic priorities for the remainder of the year are shown on slide 20. We are looking forward to delivering sharp increases in production and cash flow during the second half that are expected to lead to record full year 2026 results leaving us well positioned to deliver another record year in 2027. With that, let's go ahead and open it up for questions.

Operator: We will now begin the question and answer session. At this time, we will pause this momentarily to assemble our roster. And our first question here will come from Wayne Lam with TD Securities. Please go ahead.

Wayne Lam: Yes, thanks. Good morning, guys. Hi, I just want to-- Hey, how's it going? Just want to understand the reset in the expectations for the new gold assets after just the first quarter of operations post-combined guidance. Wayne, starting with New Afton, what was the previously budgeted timeline to get to this 16 thousand-tonne-per day Or was the revision here also largely grade driven? Because I think most of it baked in a ramp up to reach the run rate capacity, but also seems like a second haircut taking that New Afton now from what New Gold management had previously guided to what was outlined in the combined guidance, a few months ago to now.

Mitchell J. Krebs: Yes. Well, we will start there with New Afton. Thanks for the for question. The original plan for New Afton coming into the year was for them to be at 16 thousand tons a day by the end of the second quarter. And I think what we are seeing now is hitting that level early in the fourth quarter. So roughly 3 months slower than what they came into the year assuming. And so the reset in the guidance ranges there was driven more by that timing there is a little bit of a grade differential, just as we draw from different parts of the cave in response to kind of how the cave is propagating since the construction was completed in April. But maybe, Mick, you can go a layer deeper than that.

Michael Routledge: Yeah, thanks for the question. it is really about that healthy cave propagation. And with respect to the grades, we really try and chop the cave up into 6 main areas. that is north and south, and then split up into the east and west zones. and that is different grades across the cave. But the key to the start of the cave is really about drawing it and getting it balanced and flat so that it comes down as a block. And where our high grades are really in the south and the east, and we have to draw more on the west and the north, at the moment, to get the cave to propagate in a flat manner. So as we see that coming to bear over this next quarter, then we will see the draw rates increase and we should see the grades improve. Over that period between now and the end of the year. Does that help, Wayne?

Wayne Lam: Yeah. that is great. And then maybe just at Rainy River, can you give us a bit more detail on the challenges with the underground contractor this quarter? And again, on the prior time line, on the ramp up to 5 thousand-tonne-per day, and maybe some color on the underground grades as well. And then just wondering maybe for Tom, if you are chewing through more of the stockpiles at a faster rate, resulting in a greater noncash impact near term on the purchase price adjustment. Does that mean that non-cash impact to CAS goes away at some point soon? I am just not sure if I am thinking about that correctly.

Mitchell J. Krebs: Well, maybe I could-- Tom, I will try and answer that second question first because it is I think, a pretty quick answer, which is, yes, it should go away with the third quarter. I think Tom, in your comments, you mentioned $38 million or so is expected to roll through the P&L in the third quarter, and then we should be done. Thankfully. So that is on that, Wayne. Is that good on the accounting question?

Wayne Lam: Yeah. Yeah. that is good color.

Mitchell J. Krebs: Yeah. Yeah. Okay. Good. And then just on the Rainy River front, I will say a couple of things, and then, Mick can cover more detail. I would say that those short term execution challenges more in the kind of tactical realm. As those throughput rates started to climb, you could see some gaps start to surface in things like trucks, personnel, availability. Some infrastructure related constraints that will be covered by the CapEx increase that Tom flagged. But we got in there in April, May, Mick and the team and the team at Rainy River did, I think, a really good job of identifying some of these gaps as they started ramping up to that next level. And put a good plan in place pretty quickly and it is really nice to be able to see in July the effects of that work as the rates started to climb up pretty quickly and that is continued here into the early days of August. So that has us feeling really good about the second half ramp up to that 5 thousand tons a day by year end. And just quickly on the underground grade open pit grade mix, I think in the second quarter, the underground contributed something like 9 percent of total tons and that should be almost twice that in the second half. And those underground grades are almost 3x higher than surface grades, the open pit grades. So as we see that tonnage come up to 5 thousand-tonne-a-day with that higher grade impact from those tons, that is going to be the nice tailwind in terms of the second half production levels there at Rainy River. Mick, did I leave anything there for you to cover a couple of bits and pieces?

Michael Routledge: Really, just to see actually really happy with the response of what we are the remaining contractor. And working really well with them hand in a glove. The early part of the development of the Oneveron was really focused on those development rates and the contract structure focused on that. Once we address that and we ramped up hard on the development, that outpaced the mining rates, which then effectively exposed the other bottlenecks that we had to address. So we have got we have got after those with our contractor, with a great response, and we are seeing already that the uptick in that performance, with the contractor, focused now on mining rates to balance that against the development rates. And, yeah, really, really happy about how that is improving.

Wayne Lam: Okay, great. Yes, looking forward to the operational improvements in the back half of the year. Wayne just last 1, at Rochester. Can you just walk us through the expectations into the second half on grades and recoveries I know the quarterly guidance had accounted for some of the lower grade this quarter. At a pretty big step change on silver into the fourth quarter. But just given the longer cycle for silver recoveries that we have seen in the past, is that still realistic to expect those ounces to come out quickly as per the guided expectations?

Mitchell J. Krebs: Yeah, I would say the 3 biggies there, Wayne are Consistent crusher performance. That we are now demonstrating, assume that continues. higher grades. And then you have got the nice mix of higher grades and then close to fresh liner. And those are the ingredients for what should be a pretty dramatic second half compared to the first half. But Mick, you want cover that?

Michael Routledge: And, you know, during this first part of the year, Wayne, we had a lot of material that we had to produce as an overlay now for the construction of those new pads. And that is at a higher size fraction and its lowers what crushed our performance down. And so we got through a lot of that. Still producing a little bit of that for the next phase of the expansion. But overall, we are in good shape for that uptick in the second half. there is a lot of tonnes sitting on that new liner now that has not even been started to irrigate yet. So I am looking forward to that.

Wayne Lam: Okay, perfect. Nice to see a lot of free cash flow coming through despite the slow ramp-up. And look forward to catch up operationally. Best of luck in months ahead. Thanks, Wayne.

Operator: And our next question will come from Cosmos Chiu with CIBC. Please go ahead.

Cosmos Chiu: Thanks, Mitch. Mick and Tom for the presentation. My first question is going back to New Afton here. I noticed that recovery was slightly lower. Quarter over quarter, 85.1 percent for gold and 90.6 percent for copper. I guess 2 parts to my question. Number 1, as you talked about grade potentially coming back up later on during the year, does that help in terms of recovery? and then #2, you know, as you had recalibrated your guidance for the year, what kind of recovery rate are you assuming for the rest of 2026?

Mitchell J. Krebs: Yeah. Thanks, Cosmos, for the question. I will As we go into the second half of the year and as Mick alluded to, we will not only see a throughput uptick but we will see a grade uptick as well as they start drawing on some of those other areas of the C zone and that should flow through to higher recoveries on both gold and copper relative to what we saw in the first half of the year. But Mick, do you want to cover that as well?

Michael Routledge: Yeah. You nailed it, actually. So the those lower grades, it is all really about the cave draw management. As those grades come up, we should see some appreciation in the recovery rates.

Cosmos Chiu: Great. And then so is like what we saw in the first quarter, is that a better sort of run rate? I forget in terms of based on the technical report. What kind of recovery rates is expected sort of life of mine for copper and gold.

Mitchell J. Krebs: Yes. That first quarter was for us in our world was 11 days. So I cannot even remember what those recoveries looked like for that little snapshot of time. But Mick, do you want to answer Cosmos' question?

Michael Routledge: Yeah, based on the material that we pulled from the cave, the recovery is actually just did better than what that model, in fact. So it is tracking well, based on recoveries compared to the tech report. Mhmm.

Cosmos Chiu: Great. I guess, going to Rainy River here. You know, as you mentioned, underground development caught up mining rates, are now, are now catching up to those development rates. I guess my question is you did 2.3 thousand tonnes per day in the second quarter. Is there any kind of internal targets that you can share with us? Like what were you expecting in the second quarter for mining rates to have hit And then second part is, you know, getting to 5 thousand tonnes per day or targeting 5 thousand tonnes per day by year end. that is almost double. that is-- yeah, more than double what you did in the second quarter. what is kind of like that cadence of that increase You did 3.3 thousand kind of now. Is that a good number to use for the third quarter or how should we think of how that increase is going to be? Is it a straight line Or is it more parabolic? How should we look at it?

Mitchell J. Krebs: Man, you are asking for some pretty good precision there, Cosmos. But I would say the rates of underground production between now and the end of the year is fairly linear and gradual. And that 5 thousand-tonne-a-day is not an average for the fourth quarter. it is sort of the end at the end of the year. Is where we plan to be. So as you think about building that into your model, you know, it is a pretty steady ramp assumed from where we saw July to where we see December. Okay. Great. Yeah, it does not hurt to ask, right, Mitchell?

Cosmos Chiu: You can always-- Hey, you know, you have got a model to update. I get it. And then maybe in terms of the pre stripping of phase 5, how's that going?

Mitchell J. Krebs: Yeah. it is a good news story. I mean, you know, at Rainy, we talk a lot about these underground mining rates, but let's not forget the open pit is doing great. The mill is doing great. They are really hitting their stride on the underground development. And now, you know, chasing that next bottleneck down into the underground mining rates now that we are we are on top of. But in terms of phase 5, pre strip, that is a good story. Right, Mick?

Michael Routledge: Yeah. The strip is ahead of the game, and, we expect to get, a fair amount of material in the second half from 5 now. Which is great as we finish off 4 and then we manage coming out of the 4 pushback. We will get into 5 by the end of the year and post material. And, yeah, really happy about the progress there. And the mill, I mean, the mill is full. We have-- we have stockpiles that allowed us to keep the mill full. Continuously. So yeah. We are in good shape.

Cosmos Chiu: Great. Heading over to-- Cool. And maybe 1 last question. I see that in your CapEx discussion in your MD and A. You have allocated additional $15 million in CapEx to Silvertip. Any updates there you can provide to us?

Mitchell J. Krebs: And what should we be looking for? Yeah. Yeah. No. Good catch. Good question. Since we talked after the first quarter, in early May, we wrapped up the initial assessment and we have now progressed into a pre-feasibility study, and that was a decision that we made together with our Board in mid May. And so that extra capital that you flagged there, Cosmos, is really a reflection of us funding that additional work to wrap up a PFS, hopefully early 2027. Meantime, exploration, you know, is fully funded for the year to continue to try and expand the resource. that is really hitting its peak right now here in this third quarter. So that capital for Silvertip is really to fund the studies that we are proceeding with.

Cosmos Chiu: Great. Thanks, Mitchell, Mick and Tom for answering all my questions. And enjoy the rest of your summer. Thanks. Thanks. You too, Cosmos.

Operator: Our next question will come from Joshua Wolfson with RBC Capital Markets. Please go ahead.

Joshua Wolfson: Yes. Thank you very much. I appreciate all the disclosures on the call and some of the details for the new gold assets. it is helpful. Just sort of going into some of the details there further and looking at maybe some of the impacts on 2027. You know, the company was talking about changing, I guess, the draw of the cave for New Afton. When balancing things out a bit more. It would it be reasonable to think if you are balancing things out more, the grades that were previously expected in 2027-2028 that were that were quite high, you know, might be a little bit more smoothed out versus the rest of mine plan? Or is that is the cave sort of changes or limited to 2026?

Michael Routledge: Mick, do you wanna cover that? Yeah. Yeah. So at the moment, we are busy rerunning those plans. We will really know that through the third and into the fourth quarter as we set the budget for 2027 and beyond. But for the moment, there has not been any more sterilized. We are really just making sure that we balance the cave and we draw from the right points to get that balance. And so my expectation is that we will see that grade at some point over the next period. Thank you.

Joshua Wolfson: And then similarly at Rainy, I believe the underground throughput or mining rate was closer to about 6 thousand over the next 2 years. Is that still a reasonable ultimate target? And maybe is there some slight ramp up here, we should be forecasting in 27.

Mitchell J. Krebs: Yeah. No. Good question. I would say that technical report some good piece of work, obviously it was New Gold's technical report, ours. And there is still some work that we will want to do here as we get closer to 2027 on how we see that mix of underground versus open pit going forward. For now, getting up to that 5 thousand ton per day from the underground by year end and carrying that into 2027 is the near term plan. But there is still a lot of good work to do there. In terms of figuring out what that future looks like at Rainy River because there is a lot of lot of optionality there with the open pit that we wanna make sure we are we are factoring into our thinking as we go forward.

Joshua Wolfson: Right. And then last question, just on the capital allocation side. I mean, good work with the initial buybacks noted the high cash balance projected for year end. In that context, I am wondering, how is the company thinking about the cadence of the buyback through the approved period? Should we forecast similar levels or rates, or will it change based on share prices? And then when you think about the cash position and the growth expected, where would the company look to invest in growth that could start to be spent in 2027? Thanks.

Mitchell J. Krebs: Yeah. Great capital allocation question. I will start and then Tom, you can certainly chime in. I think we set up a well designed buyback program with a portion of it just automatically chewing away during blackouts, you know, no matter what. And then we can step in during non blackout periods and be opportunistic when we see the stock at a point where we think it is undervalued. And so it is going to be driven by that. You know, we do not feel like we have a gun to our head to get through $750 million by a certain date. But certainly when the stock is weak or is underperforming or on a relative basis seems undervalued, we are going to step in and be aggressive. And so as we go through the rest of the year, that is really going to be the driver for the pace of that buyback program. But we feel good about coming out of the gate strong since mid May. And the progress that we have made so far and it remains a key focus for us as we go forward. And as far as that building cash, gives us a lot of great financial flexibility to pursue high return growth starting with exploration on the brownfields exploration side. We will keep investing as much as we efficiently can deploy that some of those high priority sites. So that is right up there high on our capital allocation framework. The big chunky growth really is driven by K Zone out there at New Afton. Advancing the studies and seeing if Silvertip is potential new source of know, not that long term or not that far off, primary silver production, you know, Canadian production, silver growth. Look out at East Rochester a little bit longer term and you think about what could we do over there take advantage of the exploration success outside of the Franco Nevada area of interest there at Palmarejo. And then back to Rainy River, you know, what does the future look like there in terms of potential mine life extensions that could require some additional infrastructure to support a longer mine life. So those are some of the big chunks that come to mind Tom, what did I forget?

Thomas S. Whelan: Yeah, you nailed that. We are really happy with the design program. We will be coming out of blackout here on Friday. And if we see opportunities with the share price is at versus our expectations of value, we will be aggressive.

Joshua Wolfson: Thank you very much. Thanks, Joshua.

Operator: And our next question will come from Kevin O'Halloran with BMO Capital Markets. Please go ahead.

Kevin O'Halloran: Hey, Mitchell and team. Thanks for taking my questions. Yes, hi Kevin. Hey, at Palmarejo, can you just remind us what your goal is in terms of building out that resource inventory outside the area of influence? And then how much production do you expect to shift outside that stream area over the next say, few years?

Mitchell J. Krebs: Yeah. Great question. Been a topic of discussion here a lot. Especially on the heels of that exploration release that we put out a couple of weeks ago that shows continued success over there both further to the east at that San Miguel, La Union. We call it the Guazapares area, is the furthest kinda to the north and east from where our current operations are. that is a longer term game that needs to have additional drilling additional resource growth and then Mick and the team will, you know, are gonna start doing their studies around trade offs of how much mineralization do we need to consider a potential standalone opportunity there longer term? Or in the inner interim, is there an opportunity to haul material from that Guazapares area back to the to the Palmarejo processing facility. So that is, you know, that is a work stream that will go on for a while and with additional drilling in the meantime. The nearer term stuff, that is the Independencia Sur, The Southern Southeastern Extension Of Independencia that extends off the Franco Nevada Franco Nevada area of interest that is the near term opportunity. And think in the second quarter, we saw something like 50% of our gold production subject to the Franco Nevada terms. You know, the goal is to look at that in the peninsula, sir, in the next 2 or 3 years as the nearer term opportunity to start bringing in some gold where we can actually sell it for the market price rather than to Franco Nevada for $800 an ounce. So there is a near term play there. To the south and east at Independencia. there is the kinda medium term play further off to the east in that Guazapares area. And then in between those 2 areas, there is a lot of exploration potential and excitement that we will continue to fund and that is in my mind is then the longer term play even further beyond Guazapares. So it is like a whole new chapter to the Palmarejo story over there to the east with some near term, medium term, and longer term opportunities.

Kevin O'Halloran: Great. Yeah. Lots of potential there. Appreciate that. Yeah. But other question was just at Los Chispas. You had higher throughput in the second quarter and slightly lower grade, although grades were still quite strong. How should we be thinking about the production there going forward? Is there a bit of a trend towards higher throughput and a little bit lower grades? Or was this just kinda typical quarter to quarter fluctuation?

Mitchell J. Krebs: Yes. Thanks for the question. They are doing a tremendous job there of being very predictable and consistent and steady. And you look at first half performance versus second half expectations, it is a nice equal balance between the 2 and that is kind of the way we see it continuing into the future. Anything, Mick, you want to add to that?

Michael Routledge: Just we have a very healthy inventory stockpile, and that helps us to just balance what we get from the main. And balance the grades and the production rates out so that the mill sees what we needed to see, and we just continue to tick along there.

Kevin O'Halloran: Okay. Makes sense. And then on the on the mining unit cost there at Las Chispas I noticed they were up a little bit in the second quarter. Was that driven by royalties and the peso? Or are there other factors going on there?

Mitchell J. Krebs: Yeah. that is a good 1. I do not have a good answer to it. I will top of my head. I know there was some stockpile management that was taking place building onto the stockpile.

Michael Routledge: Mick, is there anything that comes to mind? Yeah. It was just with that little bit lower grade, we a little bit more material to keep hitting the plan. But we expect to be on budget by the end of the year. So it is just really quality fluctuations.

Kevin O'Halloran: Okay. Great. that is it for me. Thanks for taking my question. Okay. Thanks, Kevin.

Operator: And our next question will come from Eric Windmill with Scotiabank. Please go ahead.

Analyst: Hi, good morning Mitchell and team. Thanks for taking my question. Lot of my questions have been answered, but maybe just 1 on New Afton and the K Zone. Any updates there in terms of what is happening? I know you said studies ongoing, but we likely to see an update, you think, later this year or next year?

Mitchell J. Krebs: And are you talking K Zone, Eric? Yep. that is correct. Yeah. I knew after. Yeah. Yeah. Yeah. Yeah. there is an exploration piece there and then, you know, a study piece. Mick, do you wanna take the study piece where we are on that work?

Michael Routledge: And then Ifa, maybe you could chime in with a couple comments on the drilling that we are doing there. Yeah. We are we are doing the preparations for an FS, which we will get ready. We have not got an exact date when we will kick that off yet, but it will be soon. Because the engineer and the development and if I will talk about the drill in a second, that is that is ongoing. So we are resourced and forward with that. Have time to do that well, and we already looked at how we will do that development to get in the right spot to do the drilling and characterize that ready for the engineering requirements of an FS. Dife?

Aoife Mairead McGrath: Yeah. And on the exploration side, there, we are we are having great results from the k zone. We have expanded the footprint by just over 300 metres this year. On a base of somewhere around 600 metres initially. From the maiden resource shape that was outlined in the first quarter. So and the grades are holding up very well. We are seeing some nice, wide juicy intercepts in k zones. So we are we are very excited to see what comes out here in the next resource update.

Analyst: Okay. Does that help, Eric, on yeah. Okay. Yeah. Yes. Appreciate the update. Then just point of clarity, did I hear correctly, you said you are expecting a PFS for Silvertip probably early next year?

Mitchell J. Krebs: Could you release something? Well, we will complete it As to whether we will release it or not, that is probably something we will just keep internal and whether there is a thumbs up or a thumbs down at that sort of off ramp We will see what it looks like. Is it worth continuing on to an FS? Probably if and if it is, and we make that transition into a feasibility study maybe on the back of that work, that is something we would look to release. That gives us a little more time as well for the drilling to keep going and catching up and adding to that resource so that we could put together a really economically attractive project in that kind of final study. Okay. Great. Thank you very much. And last 1 for me. I know you are still busy integrating the New Gold acquisition, but terms of overall portfolio composition, are you happy with the assets? Any thoughts on divestitures or things you might wanna add down the road? No, I appreciate the question. We are happy with the portfolio. Everybody's doing great. Every asset is contributing second half is going to be a lot of fun. And on the integration front, the people are great. The infrastructure, these assets are terrific. We could not be more pleased with everything. Obviously, we have got a little bit of a timing on the ramp ups that we have we have made an adjustment for. But as far as the overall portfolio, no, we like everything we have. We like the North America only We got good balance across the 7 assets. And so we are pleased with what we have. Alright. Fantastic. Thank you very much. I appreciate it and I will hop back in the queue. Cheers. Okay. Yes. Thanks, Eric.

Operator: Our next question will come from Brian MacArthur with Raymond James. Please go ahead.

Brian MacArthur: Good morning and thank you for taking my question and thank you for all the guidance. But can I just ask a bigger philosophical question? Obviously, this is all about free cash flow. You have given good guidance for the rest of the year, but I kind of want to break it up into the third and fourth quarters, if I can. If I think about this going forward, for EBITDA, you are sort of saying you need a under your forecast, you need a 1 billion over the back half of the year. With, you know, the noncash stuff coming off into the fourth quarter. You have got ramp ups going on. I assume costs are coming down. Should I think of this as 40-60 between the third and fourth quarters? Is that reasonable? And then maybe the more important part of the question is when I go to free cash flow, for your CapEx in the back half of the year, is it evenly weighted? Or is it heavily weighted to the third quarter or something so that when we get the third quarter free cash flow number, it ends up being you know, 25% or 30% of your expected back half cash flow. I know it is a detailed question. But I think it is about leads into how much free cash flow the market expecting and, know, how much you have available to buy back shares and do everything else. Thanks.

Mitchell J. Krebs: Yeah. No. Great. Great philosophical question. I was going to just hand over the call to Tom, thinking it was gonna be a tax question that you are gonna ask, Brian. But on the weighting, your weighting is probably pretty good between the third and fourth quarters. On the free cash flow. And typically CapEx is a little higher in the third quarter during the better summer season. than our weather versus the fourth quarter.

Thomas S. Whelan: Tom? Yeah. No. I yeah. Q3 is, definitely higher CapEx than in the fourth quarter. And do not forget, Eva has a gazillion drills going in Q3. So it will be the heaviest-impact quarter for exploration. But just look at the production profile that we guided to. You do see the production sets up pretty nicely in the third quarter. And then steps up even nicer in the fourth quarter. So that should help out the geography of the free cash flow growth by quarter well.

Mitchell J. Krebs: And back to Wayne's question on timing of silver. At Rochester, that gold comes out a lot faster in the third quarter. But in the fourth quarter then on the silver at Rochester is where you will really start to see the hockey stick in the second half of the year out there. Yeah.

Brian MacArthur: that is what was trying to work out. You get all these moving parts, and you set up and down there in a couple of. And then I guess the other thing just for you, but so we get rid of the $38 million as you said, from the third quarter to the fourth quarter as well, right?

Mitchell J. Krebs: So that will be You know, in income statement for the third quarter, but noncash in the third quarter. that is right. Yeah. It will be nice to get past that purchase price allocation noise.

Analyst: The third quarter and a cleaner simpler fourth quarter.

Thomas S. Whelan: Offset by-- like, let's-- I know it is accounting noise, but this is great operational for us to have. Mean, Las Chispas has proven to be it is been great to have that stockpile, and at Rainy, it is been great to have that stockpile. Just apologies for the accounting. We are just this is what has been forced upon us. And so the pain's almost done, and for everyone's understanding. All of the analysts did a really good job of understanding this, and thank you.

Brian MacArthur: Great. Thanks very much. I was just more concerned about the free cash flow. I think that is what is really important. Thank you. Yes. No, thanks, Brian.

Operator: And this concludes our question and answer session. I would like to turn the conference back over to Mitchell J. Krebs for any closing remarks.

Mitchell J. Krebs: Okay. Well, we appreciate all the great questions and everybody's time today, and we look forward to talking with you all again later in the fall. After our third quarter results. Have a great rest of the day and rest of the summer.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.