Financial Data and Key Metrics Changes - Sales in Q2 totaled CAD 19 million at an average realized price of CAD 4.32 per pound, generating revenue of CAD 116 million, impacted by lower sales and a stronger Canadian dollar [21][22] - Net income for the quarter was CAD 22 million or CAD 0.07 per share, primarily driven by unrealized foreign exchange gains [21] - Adjusted earnings showed a net loss of CAD 13 million or CAD 0.04 loss per share [21] - Total cash costs (C1) reported at CAD 3.14 per pound in Q2, higher than the previous quarter due to lower capitalized stripping and lower molybdenum production [22][24] Business Line Data and Key Metrics Changes - Mining rates at Gibraltar increased significantly in Q2, with mine tonnages reaching 30 million tonnes, a 31% increase from Q1, marking the best mining quarter in four years [7] - Copper production remained stable at 20 million pounds, with copper grades at 0.2% and recoveries at 63% [8] - Construction costs for the Florence project totaled CAD 33 million in Q2, with total incurred costs reaching CAD 239 million, tracking towards a revised estimate of CAD 265 million [25] Market Data and Key Metrics Changes - The copper market has experienced volatility due to recent tariff announcements, but the LME copper price remains stable and strong [14] - The U.S. market is incentivizing domestic manufacturing of finished copper products, which is favorable for the Florence project [14] Company Strategy and Development Direction - The company is focused on advancing the Florence project, which is over 90% complete, with initial injection of solutions targeted for September [12] - The New Prosperity agreement allows for future mine development with the consent of the Silkotene Nation, providing a pathway for significant value realization from this asset [16][17] - The Yellowhead project has shown improved economics, with an NPV of CAD 2 billion at a copper price of CAD 4.25 per pound [18] Management's Comments on Operating Environment and Future Outlook - Management expects a strong rebound in production in Q3 and even better in Q4, with higher quality ore being accessed [7][30] - The company is actively looking to extend price protection into 2026 to cover the ramp-up of Florence [26] - Management is optimistic about the recovery of grades and recoveries at Gibraltar, projecting improvements in Q3 and Q4 [29][30] Other Important Information - The SXEW plant experienced a transformer issue, leading to an expected downtime of six to eight weeks, impacting less than 1 million pounds of production [9][10] - The company ended the quarter with a cash balance of CAD 122 million, maintaining liquidity of just under CAD 200 million [25] Q&A Session Summary Question: Commentary on grades and recoveries for Q3 at Gibraltar - Management expects both grade and recovery to improve significantly in Q3, returning to or exceeding reserve grade averages [29][30] Question: Risk of higher oxide material affecting recoveries - Management is confident in projections, noting a transition in oxidation and the expectation of higher grade ore in the coming months [31] Question: Production targets for Florence - The technical report indicates a target of around 40 million pounds for the first year of production [32] Question: Current pricing for sulfuric acid - Sulfuric acid prices are currently in the low CAD 200 range, with secured supply from two different suppliers [34] Question: Capitalized stripping expectations for Q3 - Remaining capital spend at Florence will be weighted to Q3, with minimal capital required in Q4 [38] Question: Production impact from SXEW plant downtime - The SXEW plant is expected to produce 3 to 4 million pounds annually, with a slight increase in production expected next year [40]