Financial Data and Key Metrics Changes - The company generated $2.1 billion in operating margin and approximately $1.5 billion in adjusted funds flow during the second quarter [19] - Operating margin in the upstream was approximately $2.1 billion, with oil sands non-fuel operating costs increasing to $10.73 per barrel due to turnaround activities [19][20] - Net debt was approximately $4.9 billion, a reduction of about $150 million from the previous quarter [21] Business Line Data and Key Metrics Changes - Upstream production was 766,000 BOE per day, with Christina Lake production recovering to 218,000 barrels per day after wildfire impacts [8][10] - The downstream business generated about $220 million in operating margin, with Canadian refining achieving a crude throughput of 112,000 barrels per day [15][16] - U.S. refining delivered crude throughput of 553,000 barrels per day while executing a major turnaround at the Toledo refinery [16][17] Market Data and Key Metrics Changes - The WCS differential narrowed by more than $2 per barrel during the quarter [19] - Canadian refining operating costs decreased to $10.63 per barrel, while U.S. refining costs were $10.52 per barrel, both showing improvements [20] Company Strategy and Development Direction - The company is focused on delivering higher production and lower capital expenditures into 2026, aiming to increase free funds flow [24] - Major maintenance activities are largely behind, allowing the company to drive value from operations [24] - The company plans to continue share repurchases and return cash to shareholders while managing net debt towards a target of $4 billion [22] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to challenges, including wildfire impacts, and highlighted successful turnarounds ahead of schedule [5][7] - The company remains cautiously optimistic about the regulatory environment in Canada, noting the need for improvements in regulations to facilitate major projects [92][96] Other Important Information - The company achieved first oil at Narrows Lake and is progressing with the West White Rose project, expecting first oil in early 2026 [10][12][63] - The company has removed Rush Lake production from guidance for the remainder of the year due to a localized incident but is confident in recovery plans [14][33] Q&A Session Summary Question: Status of U.S. Downstream refineries and Q3 utilization - Management confirmed that all U.S. refineries are operating as expected, with only minor scheduled maintenance planned [28][30] Question: Rush Lake incident and its impact on design capacity - Management stated that the incident was a casing failure on one well, and they are in the recovery phase, confident in the design capacity [32][33] Question: Next steps for upcoming projects and CapEx sizing - Management indicated that capital expenditures will be significantly reduced in 2026, with a focus on efficient investments in Lloydminster [39][40] Question: Confidence in operations post-turnarounds - Management noted that the recent turnarounds revealed minimal issues, increasing confidence in operational reliability moving forward [42][43] Question: M&A strategy and potential bolt-on deals - Management reiterated that there are no immediate plans for M&A, as the current portfolio is satisfactory [59][60] Question: Free cash flow expectations from West White Rose - Management expects significant free cash flow generation from the West White Rose project once it reaches full production [61][63] Question: Drivers of operating cost improvements in Canadian downstream - Management highlighted that improvements are due to better utilization, reliability enhancements, and lower energy costs [66][68]

Financial Data and Key Metrics Changes - The company reported revenue of $360 million, adjusted EBITDA of $149 million, net income of $33 million, and free cash flow of $18 million for the first quarter [19][18] - Adjusted EBITDA margin increased to 41%, essentially doubling from the prior year [19] - The company eliminated nearly $130 million of debt and metal prepay facilities during the quarter, positioning itself for further debt reductions [4][24] Business Line Data and Key Metrics Changes - Las Chispas produced 714,000 ounces of silver and over 7,000 ounces of gold during the partial quarter, with cash costs per ounce for gold and silver at $744 and $8.38 respectively [9][10] - Palmarejo saw gold production up 2% and silver production up 9% compared to the previous quarter, driven by productivity improvements [10] - Kensington's gold production increased by 6% compared to the first quarter of the previous year, indicating a return to positive free cash flow [11] Market Data and Key Metrics Changes - The company anticipates generating average free cash flow of $75 million to $100 million per quarter for the remainder of 2025 based on updated forecast pricing of $2,900 for gold and $32 for silver [20] - The average realized gold price was 41% higher than the same quarter last year, while the average realized silver price was 36% higher [36] Company Strategy and Development Direction - The company is focused on generating per share value for shareholders while strengthening the balance sheet and reinvesting in business opportunities [6] - The integration of Las Chispas is proceeding smoothly, with a focus on maintaining a steady mine life and exploring nearby areas [5][13] - The company aims to achieve a net debt to EBITDA ratio close to zero by the end of the year [4][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance and highlighted the positive changes in the company's financial health [4][24] - The company is committed to a predictable operational model moving forward, focusing on delivering strong cash flows [18][48] - Management acknowledged the importance of maintaining a strong safety culture, having been recognized as the safest mining company among peers in the U.S. [8] Other Important Information - The company published its 2024 responsibility report, emphasizing its commitment to integrity and respect [7] - The exploration investment for 2025 is expected to total between $77 million and $93 million, with a focus on expansion and scout drilling [13] Q&A Session Summary Question: When will the benefits of increased tonnage at Rochester be seen in silver recoveries? - Management indicated that improvements in crusher availability and throughput would lead to better recoveries over time [28][29] Question: What drove stronger performance at Wharf this quarter? - Management attributed the performance to timing and grade profile adjustments, expecting to meet full-year guidance [33][34] Question: Are there any impacts from lower labor costs in Mexico? - Management noted that while labor costs are stable, they expect overall benefits from increased employment at Las Chispas [36][37] Question: How long will it take to work through the extra stockpile at Las Chispas? - The company expects the stockpile to decrease over the next year as new tons are mined and processed [44][45] Question: What is the company's approach to M&A going forward? - Management indicated a focus on delivering current operations and cash flows before considering further acquisitions or divestitures [48][49] Question: What key metrics should be monitored at Rochester? - Management suggested monitoring crusher runtime and availability as key indicators of operational success [59][62]

Financial Data and Key Metrics Changes - In Q1 2025, MMG's copper production reached just over 118,000 tonnes, a 76% increase compared to the same quarter last year [21] - The total recordable injury frequency was 2.4 per million hours worked, indicating a focus on safety despite an increase from the previous quarter [19] - The significant events with energy exchange frequency was 1.08 per million hours worked, also showing an increase from last quarter [20] Business Line Data and Key Metrics Changes - Las Bambas produced over 95,000 tonnes of copper in concentrate, a 71% increase year-over-year [21] - Kinsevere produced almost 12,000 tonnes of copper cathode, a 19% increase compared to the same period last year [23] - Khoemakau produced close to 11,000 tonnes of copper in concentrate, a 4% increase from the previous quarter despite severe weather conditions [24] Market Data and Key Metrics Changes - The company is experiencing favorable market conditions, including declining TCRC rates for copper and zinc concentrates and rising precious metal prices [26] - The operations at Las Bambas are stable and in good order, contributing to a positive outlook for production and cost guidance [26] Company Strategy and Development Direction - MMG aims to become one of the top 10 global copper producers, focusing on safety performance, expansion projects, and community relations [27] - The company is advancing its Nickel Brazil acquisition and integration plans while conducting a comprehensive review of its 2025 production and cost guidance [26] - The feasibility study for expanding Las Bambas' capacity is a top priority, with plans to reach 60,000 tonnes by 2026 and 130,000 tonnes by 2028 [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting production guidance for Las Bambas, contingent on stable operations and no nationwide incidents [32] - The company is optimistic about the potential for cost reductions due to scale economics as production increases [32] - Management highlighted the importance of community relations and ongoing negotiations to ensure stable operations [31] Other Important Information - The total investment for community development projects, including the construction of a school, is approximately $9 million [22] - The company is focused on optimizing recovery rates and improving operational flexibility at its mining sites [46][48] Q&A Session Summary Question: Expectations for Las Bambas production - Management indicated that production is expected to meet the upper limit of guidance if no nationwide incidents occur [32] Question: Inventory adjustments at Las Bambas - Sales increased in Q1 due to inventory sold from Q4, and production is sticking to guidance [34] Question: Kinsevere's power outages and production expectations - Management confirmed that production is on track with guidance, and diesel power generation is a backup source [36] Question: C1 cost expectations - C1 costs are expected to improve as production increases, with precious metal prices positively impacting costs [57] Question: Tax issues in Las Bambas - Management is working with tax authorities in Peru, and they do not expect significant impacts on cash flow or corporate income tax rates [71]