Financial Data and Key Metrics Changes - As of September 30, 2025, cash and cash equivalents were $5.3 million, with a net loss for Q3 2025 of $3.4 million, or $1.16 per share, compared to $4.8 million, or $3.76 per share in Q3 2024 [25][26] - R&D expenses were $1.9 million for Q3 2025, down from $3.3 million in the same period last year, primarily due to the completion of the OVATION 2 study [25][26] - G&A expenses were $1.6 million in Q3 2025, down from $1.7 million in the same period last year [26] Business Line Data and Key Metrics Changes - The OVATION 3 trial is actively recruiting, with strong investigator enthusiasm and enrollment surpassing internal targets [9][12] - The MRD study has seen 25 patients randomized to date, with plans to cap enrollment at 30 patients [19][20] Market Data and Key Metrics Changes - The company is addressing a significant unmet need in ovarian cancer, with 300,000 new cases globally each year and 13,000 deaths annually in the U.S. alone [5][6] - The OVATION 3 trial is designed to meet regulatory expectations for approval in Europe, focusing on overall survival as a primary endpoint [10][50] Company Strategy and Development Direction - The company is focused on advancing its proprietary IL-12 immunotherapy, IMNN-001, through the OVATION 3 pivotal phase III trial [4][5] - The strategy includes a multi-pronged approach to navigate the biotech capital markets, combining non-dilutive partnerships with prudent equity raises [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the OVATION 3 trial and the transformative potential of IMNN-001 for ovarian cancer treatment [5][12] - The company is well-positioned to extend its runway through value-enhancing non-dilutive transactions, with cash projected to last through mid-Q1 2026 [23] Other Important Information - The NASDAQ compliance matter is closed, with shareholder equity confirmed above the required threshold [24] - The company has received positive reactions regarding potential partnerships, although no imminent agreements are in place [22] Q&A Session Summary Question: Clarification on interim analysis and approval - Management clarified that positive results in interim analyses could lead to full approval for the group being tested, with the trial continuing for broader indications [32][34] Question: P-value requirements for interim analysis - Management explained that the determination of stopping the trial for efficacy is complex and involves various operating characteristics rather than a fixed P-value [35][36] Question: Pain management protocol for IMNN-001 administration - It was confirmed that a prophylactic pain management protocol is mandated for all patients to ensure comfort during drug administration [38][40] Question: Durability of response and mechanism of action - Management discussed the durability of IL-12 expression and its effects on the immune system, emphasizing the localized delivery of the drug to minimize systemic adverse events [43][46] Question: Update on OVATION 2 trial and site overlap with OVATION 3 - Management indicated that an update on the OVATION 2 trial is expected by the end of the year, and there will be significant overlap in sites between OVATION 2 and OVATION 3 [58][63]

Financial Data and Key Metrics Changes - For Q1 2026, Palatin reported approximately $8.8 million in collaboration license revenue, a significant increase from zero in the same quarter last year, primarily due to the agreement with Boehringer Ingelheim [9] - Total operating expenses decreased to $4.2 million from $7.8 million in the comparable quarter last year, mainly due to reduced spending on development programs [10] - The company reported a net income of $4.7 million for the quarter, compared to a net loss of $7.8 million in the same quarter last year, driven by the revenue from the BI agreement and lower operating expenses [11] - Cash and cash equivalents as of September 30, 2025, were $1.3 million, down from $2.6 million as of June 30, 2025, but this does not include a $6.5 million milestone payment received in October 2025 [11] Business Line Data and Key Metrics Changes - The increase in collaboration license revenue is attributed entirely to the Boehringer Ingelheim agreement, which included an upfront payment and milestone achievements [9] - The company is focusing on the development of melanocortin-4 receptor agents for obesity treatment, with a proprietary portfolio that includes both orally active small molecules and long-acting peptides [13][15] Market Data and Key Metrics Changes - The collaboration with Boehringer Ingelheim validates the potential of targeting the melanocortin system, with expectations for additional development and regulatory milestones [16] - The company anticipates a multi-billion-dollar market for obesity treatments, indicating a competitive landscape with room for multiple players [25] Company Strategy and Development Direction - Palatin's R&D efforts will concentrate on melanocortin-4 receptor agents for syndromic and genetic obesity, aiming to improve dosing profiles and reduce side effects compared to current treatments [13][15] - The company plans to initiate IND-enabling studies for its compounds in the first half of 2026, with first-in-human studies expected in the second half of 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made with the Boehringer Ingelheim collaboration and the successful public offering, which has improved the company's financial standing and compliance with NYSE American listing standards [8][12] - The company expects a cash runway beyond December 31, 2026, indicating a stable financial outlook for ongoing operations [11] Other Important Information - The company executed an $18.2 million equity offering, which has provided significant non-dilutive capital and allowed for the resumption of trading on the NYSE American under the PTN ticker symbol [17] - The company is also exploring licensing opportunities for other melanocortin receptor system programs, including candidates for dry eye disease and ulcerative colitis [16] Q&A Session Summary Question: Can you highlight the ideal target profile for PL7737 and the long-acting peptides? - Management emphasized the importance of minimizing activity at the melanocortin-1 receptor and achieving a flat pharmacokinetic curve for effective obesity treatment [19][20] Question: How do these next-generation compounds address hyperpigmentation side effects? - The company has developed selective agonists that significantly reduce activity at the melanocortin-1 receptor, potentially eliminating skin darkening side effects [23] Question: How does the company position itself against competitors in the obesity treatment market? - Management believes that the quality of their compounds, which reduce potential side effects and maximize efficacy, will allow them to compete effectively in a multi-billion-dollar market [25] Question: When might we see the next collaboration from other pipeline compounds? - Management anticipates near-term resource development milestones of approximately $15 million within the next 12 months following the successful collaboration with Boehringer Ingelheim [27]

Financial Data and Key Metrics Changes - Third quarter consolidated revenues were $44.2 million, representing a 25% increase year over year [11] - Adjusted EBITDA declined to $2.4 million from $3.4 million in the prior year, primarily due to lower capacity utilization and manufacturing inefficiencies [11][12] - Third quarter orders were strong at nearly $44 million, a 90% increase year over year and 108% sequentially, marking the highest quarterly order level since 2022 [12] Business Line Data and Key Metrics Changes - Heavy fabrication segment revenue grew by 43% year over year to $29.4 million, driven by increased sales of wind power sections [8][13] - Gearing orders increased 260% to nearly $16 million, with a notable $6 million follow-on order from a leading OEM in the natural gas turbine segment [6][14] - Industrial solutions segment orders reached nearly $14 million, maintaining strong demand, with revenue up 37% year over year [15][16] Market Data and Key Metrics Changes - Orders from power generation customers more than doubled year over year, now representing nearly 20% of revenue [4] - The industrial solutions segment backlog hit a new record of almost $36 million, reflecting strong demand in the natural gas power equipment industry [16] - Customer activity remains robust, with incoming orders rising to $44 million, driven by strong demand from power generation, oil and gas, and industrial customers [5][6] Company Strategy and Development Direction - The company is transforming into a leading precision manufacturing partner for global OEMs, focusing on high-value end markets and reducing fixed overhead [4] - Strategic actions include consolidating manufacturing operations and enhancing asset utilization to capitalize on growing markets [5][9] - The company aims to expand in power generation markets, including oil and gas, renewables, and potentially nuclear, leveraging its precision manufacturing expertise [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation potential, despite a volatile trade policy environment [5] - The company anticipates improved capacity utilization and profitability as production normalizes and operational headwinds are addressed [8][19] - Management expects continued growth in the natural gas turbine market, driven by increasing demand for reliable power supply [21][50] Other Important Information - The company completed the sale of its Manitowoc industrial fabrication operations, resulting in a net gain of $8.2 million and enhancing liquidity [5][17] - Full year 2025 revenue expectations have been increased to a range of $155-$160 million, up from $145-$155 million [17][18] - The company is investing in additional manufacturing capacity to address growing backlogs and meet future customer demand [8][21] Q&A Session Summary Question: Will power infrastructure ramp be the key driver for growth in 2026? - Management indicated that power generation and critical infrastructure will lift both industrial solutions and gearing segments in 2026 [31] Question: Is the general business environment for the gearing segment positive despite economic slowdown? - Management noted strength in power generation and infrastructure markets, with softness in revenue due to a lack of orders from previous quarters [32] Question: Are there any cost increases expected, and what is the margin outlook for 2026? - Management expects stable margins with some cost increases due to tariffs, but anticipates improved margins from increased capacity utilization [33] Question: Will gross margins improve now that Manitowoc overhead is eliminated? - Management confirmed that gross margins are expected to improve due to the absence of operational headwinds and higher capacity utilization at the Abilene facility [37] Question: Is the weakness in PRS demand due to timing or lack of demand? - Management believes the weakness is primarily timing-related, with expectations for a resurgence in volume once oil prices stabilize [39] Question: What are the CapEx plans for industrial solutions given the backlog? - Management indicated modest CapEx investments this year, with plans to expand the plant's floor space by 35% in the second half of 2026 to meet demand [47] Question: Is there potential for capacity expansion beyond 2026? - Management confirmed visibility for growth in the gas turbine market extending into 2027 and 2028, with ample capacity available in the gearing facility [50]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a revenue growth of nearly 7%, approximately $14 million year-over-year, with gross margin increasing by 8.4% and adjusted EBITDA rising to 28.6%, marking the highest level for a third quarter since at least 2016 [4][5][14] - Adjusted selling, general, and administrative expenses decreased to 20.8% of consolidated revenue from 21.7% in Q3 2024, reflecting ongoing cost discipline [6][13] - For the first nine months of 2025, adjusted EBITDA improved by 12%, about $5 million year-over-year, with adjusted net loss down nearly $7 million compared to the same period in 2024 [14][16] Business Line Data and Key Metrics Changes - The inspection and heat treating (IHT) segment experienced a revenue growth of 5.7%, driven by strong activity in the U.S. and an 8.9% growth in international operations, including Canada [5] - The mechanical services segment saw a revenue increase of 7.8%, or $8 million, led by heightened turnaround demand in the U.S. and improved performance in Canada [5] Market Data and Key Metrics Changes - The company noted multiple quarters of growth in Canadian operations, indicating successful initiatives to enhance commercial and financial performance in that region [5] - The diversified portfolio across multiple industries and geographic footprint is expected to help navigate macroeconomic uncertainties [8] Company Strategy and Development Direction - The company aims to continue executing its strategic vision focused on top-line growth, margin improvement, and cash flow generation [7][12] - A recent $75 million private placement of preferred stock with Stellux Capital Management is expected to strengthen the balance sheet and enhance financial flexibility, supporting ongoing margin improvement initiatives [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately 5% revenue growth and 13% adjusted EBITDA growth for the full year 2025, driven by cost control and capital discipline [9][14] - The company anticipates improved free cash flow generation in the fourth quarter, reversing adverse working capital trends [15][16] Other Important Information - The company has increased liquidity to $57.1 million as of September 30, 2025, consisting of unrestricted cash and undrawn availability under credit facilities [12] - The leadership team emphasized the importance of safety culture and continuous improvement as vital to the company's success [18][19] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Tetra Tech reported record net revenue of $1.07 billion for Q4 2025, a 10% increase from the previous year [6] - Operating income reached $168 million, up 23%, with earnings per share growing by 29% to $0.44 for the quarter [6][7] - Fiscal year 2025 revenue increased by 7%, while operating income rose by 18%, and EBITDA increased by 13% [13][14] Business Line Data and Key Metrics Changes - Government Services Group (GSG) revenue grew by 17% to $396 million in Q4, with a margin performance of 22.9%, up 330 basis points from the prior year [8] - Commercial International Group revenue increased by 7% to $676 million, with margins excluding Australia up by about 60 basis points [8] - U.S. federal work accounted for 21% of total business, up 22% from the prior year, primarily driven by contracts with the U.S. Army Corps of Engineers [9] Market Data and Key Metrics Changes - International work constituted about 45% of overall business, growing at a 9% rate, with notable increases in the UK water business and Canadian clean energy [9] - U.S. state and local markets grew by 19%, driven by municipal water treatment and digital water modernization [9] - U.S. commercial work saw a slight decline, impacted by reductions in renewable energy work, but high-voltage transmission work is rapidly growing due to increased energy demand [9] Company Strategy and Development Direction - Tetra Tech focuses on high-end consulting and leadership in water services, which are expected to be in higher demand in the fastest-growing markets [4][20] - The company aims to capitalize on large global investments in water-reliant infrastructure, with a total addressable market in the hundreds of billions [20] - Tetra Tech is positioned to benefit from increased defense budgets and infrastructure projects, particularly in coastal resiliency and flood protection [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes in U.S. federal government priorities and maintain record financial performance [4] - The outlook for fiscal year 2026 includes expected growth rates of 5-10% for international and U.S. commercial work, and 10-15% for state and local work [30][32] - The company anticipates a strong start to fiscal year 2026, supported by ongoing demand for high-end water services [33] Other Important Information - Tetra Tech's backlog reached $4.14 billion, with a strong quarter of contract awards, including over $1.2 billion in new contracts with U.S. defense agencies [11] - The company announced a 12% increase in its quarterly dividend, marking the 42nd consecutive quarterly dividend with annual double-digit increases [18] - Tetra Tech's net debt amounted to about $600 million, with a leverage ratio of 0.9 times EBITDA, indicating a strong balance sheet [16] Q&A Session Summary Question: Why is revenue growth expected to decouple from backlog growth this year? - Management explained that the U.S. federal government's funding has become shorter in duration, leading to smaller task orders, while state and local work continues to grow, keeping the backlog flat [36][38] Question: Can you provide details on international business performance? - The strongest growth was seen in the UK and Europe, particularly in water programs, while Canada is expected to improve due to recent infrastructure spending [42][44] Question: How was the fiscal 2026 guidance range built? - The guidance reflects expected growth rates across various sectors, with potential deviations based on clarity in international markets and U.S. state department funding [51][57]

Financial Data and Key Metrics Changes - The third quarter results showed significant improvement over the previous two quarters, with copper production just under 28 million pounds and adjusted EBITDA of CAD 62 million [4][5][12] - Total revenue for the quarter was CAD 174 million, a 50% increase quarter over quarter, driven by higher sales volume and strong copper pricing [12][13] - The average realized copper price was just shy of $4.50 per pound US, in line with the LME average [12] Business Line Data and Key Metrics Changes - Copper sales for the quarter were 26 million pounds, including 900,000 pounds of cathode, slightly below production due to shipment timing [12] - Molybdenum production increased to 560,000 pounds, reflecting higher moly grades [5] - Operating costs at Florence were CAD 8 million for the quarter, expected to increase as operations ramp up [15] Market Data and Key Metrics Changes - The COMEX price for copper has been trading at a premium to the LME, recently at about 4% premium or roughly $0.20 a pound [10] - The U.S. government plans to revisit tariffs in mid-next year, with potential tariffs on cathode increasing to 15% by the end of 2026 [10] Company Strategy and Development Direction - The company is focused on ramping up production at the Florence project, with expectations to produce copper early in the new year [8][9] - The company plans to advance work at the Yellowhead project, viewing it as an important long-term growth opportunity [11] - The recent equity offering has strengthened the balance sheet, allowing for additional working capital support ahead of the Florence ramp-up [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ramp-up at Florence and the potential for increased production next year [20] - The early results from the wellfield operations are positive, indicating a good start for the project [8][20] - The company is monitoring market dynamics closely, especially regarding potential future tariffs and their impact on copper pricing [10] Other Important Information - The company achieved substantial completion of the SXEW plant at Florence, marking a significant milestone [7][14] - The company ended the quarter with CAD 91 million in cash, positioning it well for future operations [15] Q&A Session Summary Question: Benefits of accelerating wellfield drilling - Management indicated that the key is to open additional wells to increase solution flows, which is crucial for ramp-up [18] Question: Production guidance for next year - Management refrained from providing specific production guidance but expressed optimism based on current conditions [20] Question: Milestones for declaring commercial production - Management stated that the focus will be on operating profit and cash flow rather than traditional metrics for declaring commercial production [26][28] Question: Accounting for revenues and costs - Revenue will be recognized once cathode is sold, and some costs will be capitalized until the plant is fully operational [29] Question: Status of initial capital spend - Management confirmed that the initial capital spend is effectively complete, with only minor commissioning costs expected in Q4 [30]

Financial Data and Key Metrics Changes - For the quarter ended September 30, 2025, the net investment income (NII) before taxes was $0.6 million, or 4 cents per share, a decrease of 2 cents per share from the previous quarter [4] - Net assets declined by approximately 4%, with net asset value per share decreasing to $5.04 from $5.27 last quarter [5] - The fair value of the portfolio was $196.1 million compared to $204.1 million on March 31 [9] - The weighted average yield of the portfolio from debt increased to 10.9% from 10.6% in the previous quarter [9] Business Line Data and Key Metrics Changes - Approximately 82% of assets at fair value are rated in the top two risk-rated categories, with a weighted average interest coverage ratio improving to 2.3 times compared to 2 times a year ago [6] - The portfolio consisted of investments in 41 companies, with 78% in first lien debt and 22% in equity warrants and other securities [9] - Non-accruals accounted for 4.4% of the portfolio at fair value, up from 1.6% last quarter [5] Market Data and Key Metrics Changes - Deal flow and sponsor-led M&A activity remain slow, with many transactions still in process rather than closing [6] - Approximately 57% of sponsor-backed private credit deals were priced with spreads below 500 basis points in the current quarter [7] Company Strategy and Development Direction - The company remains focused on executing its strategy and positioning the portfolio for long-term value creation, prioritizing credit quality and income stability over yield [13] - The refinancing commitment from Investcorp Capital enhances financial flexibility and strengthens the balance sheet [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted solid underlying portfolio performance with strong coverage metrics and healthy diversification across sectors, despite a subdued market activity [15] - The company expects NII to benefit from new fundings and remains committed to disciplined portfolio management [7] Other Important Information - The board declared a distribution of $0.12 per share and a supplemental distribution of $0.02 per share payable in cash on December 12, 2025 [11] - As of September 30, the company had approximately $11.6 million of cash, with $36.5 million of capacity under its revolving credit facility [11] Q&A Session Summary Question: Clarification on the backstop for refinancing - The backstop is to refinance the notes in the event that they have not been refinanced prior to the April 1, 2026 maturity date [17] Question: Parameters regarding the coupons - The new coupon agreed upon is SOFR plus 550 on a floating-rate basis [18] Question: Spillover income for the quarter - The company does not provide specific spillover income but indicates that the dividend has been above NII, reflecting the spillback amount required [19] Question: Reason for keeping non-accrual investments on the portfolio - The company is required to keep all investments that have any chance of being paid on the portfolio, even if marked at zero [20][22]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported record revenue of $70.7 million, with operating cash flow of $35.6 million generated from Florida Canyon [9][36] - Adjusted earnings for the quarter were $16.3 million, or $0.10 per share, marking a total year-to-date adjusted earnings of $32.5 million, or $0.19 per share [10][36] - The cash balance at the end of the quarter was $81.2 million, the strongest financial position in the company's history [10][36] Business Line Data and Key Metrics Changes - Florida Canyon produced 20,653 ounces of gold in Q3 2025, with a cash cost of $1,876 per ounce and all-in sustaining cost (AISC) of $2,647 per ounce [9][14] - Year-to-date production from Florida Canyon reached 58,063 ounces, aligning with the annual guidance of 70,000-75,000 ounces [14] - The average realized gold price during the quarter was $3,464 per ounce, demonstrating significant cash flow leverage [9][36] Market Data and Key Metrics Changes - The company noted that elevated gold prices are adding cost pressure, with a $100 per ounce change in gold price resulting in an estimated $7 change to both cash costs and mine site AISC [15] - The average gold price realized year-to-date was $3,228 per ounce [36] Company Strategy and Development Direction - The acquisition of Florida Canyon has transformed the company from a gold developer to a gold producer, providing a reliable cash flow source to advance other projects [5][7] - Major investments are underway at Florida Canyon, including heap leach pad expansion and process optimization, aimed at sustaining and growing the operation [6][17] - The company aims to become a U.S.-focused intermediate gold producer, with ongoing work at Florida Canyon supporting the advancement of the Delamar and Nevada North projects [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Florida Canyon's ability to generate cash flow, which supports the development of other projects [5][10] - The company expects to publish an updated life of mine plan for Florida Canyon in the first half of 2026, highlighting its future potential [6][10] - The permitting process for the Delamar Project is progressing, with clarity expected in early 2026 [28][29] Other Important Information - A historic relationship agreement was signed with the Shoshone-Paiute Tribe for the development of the Delamar Project, emphasizing collaboration and sustainable economic development [31][32] - The company is focused on disciplined capital allocation and evaluating strategic M&A opportunities to support its growth objectives [41] Q&A Session Summary Question: How should we think about residual ounces boosting production going forward? - Management indicated that roughly half of the production is from residual ounces, which is expected to continue for some time but will taper off gradually [44][47] Question: Has the U.S. government shutdown affected permitting? - Management confirmed that there was no delay in permitting timelines due to the government shutdown, as they had a cost recovery program in place with the Bureau of Land Management [48] Question: What gold price will be used for future studies? - The company is monitoring consensus prices and has not finalized a price yet, but it is expected to be in the range of $2,500 to $3,000 [50][51] Question: When will major capital investments at Florida Canyon be behind? - Management indicated that capital expenditures are expected to taper off by the end of 2026, but future expansions may require additional capital [56][58] Question: Is all drilling material within permitted areas? - Management confirmed that all drilling for the north dumps and interpit areas is within the mine plan of operations, requiring no new permitting [77]

Financial Data and Key Metrics Changes - Record attributable free cash flow of $251.7 million in Q3 2025, benefiting from increased silver and gold prices and solid cost performance [4] - Attributable revenue reached a record of $884.4 million, with net earnings of $169.2 million or $0.45 basic earnings per share [5] - Adjusted earnings were $181 million or $0.48 basic adjusted earnings per share, with attributable cash flow from operations at a record of $323.6 million [5][6] - Cash and short-term investments totaled $910.8 million, with total available liquidity of $1.7 billion [6] Business Line Data and Key Metrics Changes - Attributable silver production in Q3 was 5.5 million ounces, including 580,000 ounces from Juanicipio's one-month contribution [7] - Silver segment cash costs were $10.41 per ounce, and all-in sustaining costs were $15.43 per ounce, lower than Q2 2025 [9] - Attributable gold production was 183,500 ounces, with gold segment cash costs at $1,325 per ounce and all-in sustaining costs at $1,697 per ounce [10] Market Data and Key Metrics Changes - The company raised its attributable silver production guidance to 22-22.5 million ounces and lowered silver segment all-in sustaining costs to $14.50-$16 per ounce [11] - The quarter benefited from high byproduct gold production and prices, contributing to lower costs [9] Company Strategy and Development Direction - The acquisition of MagSilver is expected to lower costs and improve margins, with a strategic focus on the Juanicipio mine [4] - Development plans at La Colorada include a phased approach to enhance project value, with a PEA expected in Q2 2026 [12][28] - Optimization studies at Jacobina aim to improve operational efficiencies and mine life, with several projects underway [13][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Q4 guidance despite challenges in Q3, with expectations for improved gold production [25][31] - The company anticipates a strong Q4 report and plans to provide detailed guidance for 2026 early next year [55] Other Important Information - The board approved an increase in the dividend to $0.14 per common share for Q3 2025, reflecting strong cash flow generation [6][48] - The company is actively engaged in partnership discussions for the La Colorada Scarn project, with significant resource potential identified [12][26] Q&A Session Summary Question: Guidance increase related to Juanicipio - Management confirmed that the guidance for Juanicipio remains similar to what MagSilver had previously, with no significant changes expected [16] Question: Silver grades and mining strategy at Huarón - Management explained that the current strategy involves increasing development to prepare high-grade stopes, which may lead to more diluted ore in the short term [17][18] Question: Optimization studies at Jacobina - Management detailed ongoing optimization efforts at Jacobina, focusing on plant efficiency and tailings management to enhance production and reduce costs [19][20] Question: Gold production challenges and guidance - Management maintained confidence in achieving gold production guidance for Q4 despite challenges faced in Q3 [25] Question: Partnership discussions for La Colorada Scarn - Management indicated that discussions are advanced but too early to share specific details publicly [26] Question: Zinc and lead price performance - Management discussed the factors influencing base metal prices, noting that zinc is included in critical minerals lists, which supports its price [29] Question: Technical issues at various mines - Management acknowledged ongoing technical issues but expressed optimism about resolving them and improving production in Q4 [31][33] Question: Accounting for Juanicipio - Management offered to discuss the accounting details for Juanicipio offline, noting complexities in reporting [42][43] Question: Dividend policy and future expectations - Management clarified that the recent dividend increase was a one-time decision based on strong cash flow, with future dividends to be evaluated based on performance [48][49]

Financial Data and Key Metrics Changes - For Q3 2025, Ballard Power Systems reported revenue of $32.5 million, a 120% year-over-year increase, primarily driven by bus and rail deliveries [15] - Gross margin improved to 15% compared to negative 56% in Q3 2024, reflecting a 71-point improvement due to lower manufacturing overhead and product cost reductions [15] - Total operating expenses decreased by 36% year-over-year to $34.9 million, or 55% lower when excluding restructuring costs [15] - Cash operating costs declined by 40% year-over-year, indicating the effectiveness of restructuring actions [16] - Adjusted EBITDA improved to negative $31.2 million from negative $60.1 million in the prior year [16] Business Line Data and Key Metrics Changes - The bus and rail segments accounted for more than 70% of the quarter's revenue, highlighting the importance of the bus market [3][4] - The marine segment saw its largest order ever, totaling 6.4 megawatts, indicating growth in this early-stage market [8] - The stationary power market is evolving, with a focus on backup power solutions to replace diesel generators, and unit volumes are expected to increase [9][10] Market Data and Key Metrics Changes - The interest in electrification for buses has significantly increased, with nearly 60% of new bus sales now being zero-emission [4] - In Europe, there is steady progress in the adoption rates for fuel cells, while North America remains flat year-over-year [20][21] Company Strategy and Development Direction - The company is focused on becoming cash flow positive and is making progress on its strategic realignment, including significant reductions in cash operating costs [10][12] - Ballard is enhancing its product offerings with additional services, including digital operations and maintenance services, to improve customer engagement [6] - The decision not to pursue the Texas Gigafactory reflects a commitment to capital discipline and efficient execution [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the bus market, particularly as infrastructure constraints for battery electric vehicles shift dynamics in favor of fuel cells [20] - The company anticipates further improvement in gross margins and growth in the material handling market, with a focus on durability and service obligations [11][12] - Management emphasized the importance of maintaining a strong balance sheet and capital discipline to support long-term sustainability [17] Other Important Information - The company is reducing its involvement in the Weichai Ballard joint venture in China to concentrate resources on North America and Europe [12] - The FC Move SC product was launched at Bus World, receiving positive feedback from OEMs, indicating strong market interest [5] Q&A Session Summary Question: Thoughts on growth rates in the bus market - Management noted tremendous reception at Busworld and highlighted the changing dynamics favoring fuel cells due to infrastructure constraints for battery electric vehicles [20] Question: Gross margin expectations - Management confirmed that the slightly negative gross margin, adjusted for one-time benefits, is expected to improve in the future, with low to mid-single digits anticipated for 2026 [22][23] Question: Importance of the Texas facility for restructuring targets - Management clarified that Project Forge is independent of the Texas facility and is focused on automation and materials efficiency, which is progressing well [26] Question: Strategy on material handling - Management indicated that there is near-term interest in air-cooled systems with additional durability, resonating well with new customers [27] Question: Evolution of the largest marine order - Management discussed the long development process for the Samskip order and emphasized the importance of customer collaboration and understanding their hydrogen supply needs [30][32]