Hemlo Mining Update | Jason Kosec and Jimmy Connor
Summary
Gold Mining: The guest pitches a long-life Canadian gold asset with plans to extend mine life from 14 to 20+ years and increase production from ~140k oz to ~200k oz annually.
Optimization Plan: A comprehensive brownfield optimization includes resource-to-reserve conversion, mine design changes, and mill upgrades to reach ~6,000 tpd and 200k oz by 2027.
Exploration Drilling: A 130 km drill program with a ~$40M exploration budget targets growth (new ounces) and high-definition drilling (resource conversion), focusing on A/B/D/E zones and fold closures.
Cost Structure: Life-of-mine AISC is ~$1,400/oz, with incremental capex for mill back-end upgrades; the plan leverages underutilized hoist, ramp, and mill capacity for higher throughput.
Price Assumptions: The company shifts reserve pricing to $2,100–$2,500/oz amid decoupling of spot vs. long-term consensus, enhancing stope continuity and operational efficiency.
Valuation & Catalysts: Management targets closing a valuation gap versus peers (~$1.5B vs. $3–3.5B comps) through execution, with catalysts including TSX mainboard listing, potential index inclusion, and a Q1 resource update.
Regional Upside: The Hemlo greenstone belt (47,000 ha) is a prolific region with multi-decade potential; regional exploration will be sequenced after near-mine value creation.
Context & Comparables: Asset was acquired from Barrick Gold (GOLD), with prior underinvestment creating opportunity for focused optimization and sustained margin preservation.
Transcript
Jason, thank you very much for joining us today. So, you are the CEO of Hemllo Mining and Hemllo is the newest publicly traded gold mine in Canada, but the mine itself has been producing gold since 1985 and the mine was acquired from Beric. Why don't you take us through the process of how you and your team acquired this asset and how did it all come together? >> Yeah, thanks for having me on. Uh, quite a unique history to be quite honest. Um, our lead director, uh, Bob Cordermain, a reputation speaks for himself, mining hall of fame guy, was actually at Hemllo for two of the three discoveries, uh, back in the early 80s. So, his affinity with the asset and his knowledge on a geological level is unparallel to to to anyone else in in the industry. Um so with that and his relationships with CIBC and Mark Bristo um he was asked to come into the process um in early April. um him and uh our other co-founder uh Jonathan Odd um worked together at Dakota Gold as you know um they contacted me and we we we built a really an amazing team uh around this high quality asset. Um the process was very competitive. uh started off with about 35 companies uh dwindled down into phase two around 10 and then the final process uh of around four people well board total. Um it was extremely competitive. We were the only call it shell company in the in the process. um everyone else was multi-billion dollar producing companies uh operating in the area or or elsewhere globally. Um we have a very unique skill set with our team. Um we pride ourselves on on on our operational excellence. We have a very very strong uh mining and engineering team uh that sees a lot of value in in in optimizing projects and has done that multiple times over over their career. Uh and then a unique skill set on the geological side that you know we see a lot of potential where others may not myself being a structural geologist by trade. So, um, all of that it was it was a a lengthy process, very competitive process. Um, you know, the bids were all stacked on on one another. Um, so we did not overpay for it. And it was, frankly, a very unique time uh to ink a deal when, you know, gold price was $3,300. It is now moved $1,000 in our favor. Uh but more importantly, you're inking a deal at 2,600 long-term metal prices. Uh and never before in in in this market, as you know, have you seen such a decoupling from spot prices to long-term consent consensus prices. Usually around 15 uh 15% discount to spot. So, when you're talking about a 14-year asset that we see clear visibility and and potential to push over 19, 20 years, inking in at $2,600 uh is is is extremely um you know, value creative for our shareholders given the duration of of of the asset. >> And I didn't realize there was that much competition for that asset. So, good on you guys. But what was the final price tag? How much did you pay? So it was it it was 925 up front. So$875 in cash and and 50 in in in stock. All numbers we'll disclose and talk about today in US dollars. Um you know it's is a a very unique asset. It's a it's a piece of Canadian mining history. I I used to write papers on when I was in university. Uh and you know you could count on one hand how many you know we we believe the potential is 20 plus years. We believe we can we can have the potential to produce over 200,000 ounces peran and we're at around 140 now. You could count on one hand how many assets are like that in Canada and and and frankly in North America. >> And you threw out a few numbers there I want to do a deeper dive on. You mentioned that the mine life is currently 14 years. It produces 140,000 ounces annually. What's the all- in sustaining cost based on the last technical report? >> Yeah, so the last technical report has an annual uh an all-in sustaining cash cost of of of $1,400 uh over the life of over the life of mine. Obviously, there's higher years and lower years. Um for example, next year uh the the technical report had around 1956. >> So very high margin mine in in these middle prices. >> And one of the issues with Hemllo under barracks ownership is that it was under capitalized. Essentially they didn't care about the asset. They just wanted the cash flow. and you and your team want to implement an optimization program focused on converting resources and also making improvements in the mine and the mill. So I want to touch on each one of these elements. So why don't we just touch on resources first? What are your plans in converting these resources into reserves? Yeah, you know, Bareric is a, you know, very wellrespected company and honestly as a geologist, I I I really idolize Mark Bristo. Um, but you know, when you're going to allocate capital as Barrack and you know, $125 million investment can push you from 150 to 200,000 ounces a year. You could do that. or you could go drill off 10 million ounces at four mile. You know, I could tell you what I would do. Uh and they they did exactly that. Uh right, it's sub 5% of barracks overall production profile. Um what we are doing from a resource and reserve perspective is launching one of the biggest drill programs in North America. Uh this year we're drilling over 130 kilometers. Okay. Uh, a lot of that the the in two buckets. There's high definition drilling and growth drilling. Um, from the growth perspective, you know, to put it into perspective, Bareric was doing about $2 million a year in growth because obviously they were just harvesting cash uh for four mile and rig. Um, we are spending $20 million on growth and, uh, you know, I come from the OSCO group, uh, where we like to drill a lot. Um, and, uh, so we're we're we're we're very happy about that. Uh, and to drill off a million ounces in these types of systems costs anywhere between 20 and $40 million. So we see a lot of potential, a lot of value to be unlocked through the drill bit as it was completely underinvested. But I we understand why it was just so noncore to to a global giant like like Bareric. Um, so we understand why it was uh under capitalized, but you know, it's the story old as time where you look at, you know, what Jason Simpson did or Tony Makuch did uh when you pull assets, non-core assets out of major mining companies and really give it make it a core focus for for the team. There's a tremendous amount of value uh that that that can be unlocked. And so you said you're going to spend Beric was spending 2 million, you're going to 20 million and >> just on just on growth drilling. So our overall exploration budgets around $40 million US. >> Okay. So why don't we touch on that also? So when you talk about exploration, you're talking about regional exploration. >> No. So the way we do it uh is what we classify as growth is bringing ounces into the inferred category. Okay. And then what we classify as high definition drilling is resource to reserve conversion. So inferred into indicated indicated into measured. We want to get to a point uh that everything we are mining uh is measured material. Right now we're about 80 85% of the material that we'll be mining next year uh is measured. We want to get to a point where 100% of the material is is is measured. And another part of the optimization program is working on the mine itself and and I guess making changes to the infrastructure. What do you have planned there? >> Yeah, you know, it was it was very interesting. Um, you know, we talk about a very underutilized infrastructure here at Hambo quite a lot. Uh, very similar to again muscle white and porcupine. Um, the hoisting capacity is at 60%. So it can do 6,000 tons a day of war. There's a ramp that just broke through to surface that can do 2500 tons a day. So you're talking about 8,500 tons a day that you can pull from the underground. Our current mining rate is 3,500 tons a day. Um the mill capacity is 10,000 tons a day. So you would think that that is an obvious strategy that that Bareric can execute. the the the issue around that um and you could see a slide nine in our our corporate presentation is that when you run it at a very conservative metal price of $1,700 for reserves, the stoopes are scattered all throughout the mine. And when you flex the metal price to still a very conservative number at 2100, you you see very discreet sectors that can you you put one team in that sector uh which will drive a much higher productivity and a lower unit operating cost that will support the lower grade cutoff. Um, but you can't see that at a $1,700 metal price. So, by doing that, we've redone the whole life of mine design at that higher metal price. Um, which will drive that hotter higher productivity that could fill the hoist, fill the ramp, and still we're at 85% capacity at the mill. So, it's it's a very unique asset with respects to that. And again, we're not reinventing the wheel. the mine was designed for 6,000 tons a day on earth, right? Uh it was just um Barrett being conservative uh and and Mark doing a great job on preserving margins. Uh but we see that, you know, you in this metal environment, still being very conservative, still preserving significant margins, uh this will allow for much better productivity and a more fitfor-purpose approach for this this mine. And I'm sorry, Beric was using 1,700. What are you going to use? >> Uh, so start up until last year in 25 they were using,500. Then they use 1,700. Uh, we are just going back and forth with between 21 and 2500. So we don't have a a set number for for reserves just yet, but it'll be between uh those two two numbers. And now why don't we talk about the uh the mill because you also want to do some optimization changes here. What do you have in plan or what do you have in mind? >> Yeah. No, they they did a great job. Um that's one of the things when you buy assets from big companies like Bareric. Uh they do a great job of of when they they're 18 months ahead on their development rate. You know, commonly a junior would be six months ahead. So they do a great job with with with things like that. And especially to go back to the mill like they run two parallel lines right now. So the sag and the ball mill on the front end they'll run one line shut it down maintain it run the other line shut it down maintain it. The back end of the mill with the uh Nelson concentrator the tailing flotation cells and the cyanide detox tanks need to be upgraded. So from 3,800 to 4,800, there's no capital investment. From 4,800 to 6 to 6,000 tons a day, there's about a $10 million uh capital investment. And then to get to the full 10,000 um including the tenants around 32 million, which is all disclosed in the technical report. >> And so I want to talk about exploration drilling. Now Bareric did very little but you're going to do significantly more. What maybe you can just talk about that and what targets do you have planned? >> Yeah, there it it as a structural geologist it's quite fascinating and you know Bob Corder main like loves his geology amazing person to work with. Um and it's f hosted in in in two deformation events. There's an F1 fold, F2 fold. Um, so there's a lot of potential extending these fold closures at depth and there's multiple folds that have not been yet drilled. So the Ezone, Bzone, Dzone, and Azone are areas of significant focus for for next year. And why don't we just touch on regional exploration because I don't think I mentioned this but the Hemllo gold deposit is located along the Hemllo greenstone belt which is a very prolific gold region. Maybe you can just touch on that and if you've identified other areas yet that you want to test or target. Yeah, you know, uh the answer is is we have not properly uh evaluated the regional land package. It's a massive land package in an Archan granite greenstone belt. It's around 47,000 hectares. to say that there's a oneoff deposit of call it 25 historically produced. We see potential to get push it well over 30 million ounces. To say that there's a one-off 30 million ounce deposit and these types of rocks on a geological level, it's extremely rare. Um, so we will chip away at at at at the regional land package, but to be honest, there's so much potential uh just at the Hemllo brownfield site proper uh that that's, you know, we're talking we see potential to get over 20 years. So evaluating the regional scale uh on on an accretion basis when you discount ounces back is is something that we're we're kind of pushing off to to the future. But we'll pick away at it next year and over the coming years to properly rank and value the the targets. >> And why don't we talk about the timeline associated with this optimization program because it currently has a 14year mine life and you want to take it to 20. It's producing 140,000 ounces and you want to take it to 200,000. What's the timeline associated with doing all of that? >> Yeah. So, it's it's going to occur over the next call it year and a half. Uh, by the end of 27, we'll be at that 6,000 ton a day runway, which will equate to about around 200,000 ounces of of of annual attributable production. Um, it takes time. We got to order equipment uh which has already been ordered and and and staff up the the the site team. So it's not going to happen overnight. Uh by the end of this year we will be at that call it 48 100 ton a day run rate. So gradual increases um and we think we're conservative on those numbers. So why don't we talk about your balance sheet now and how much cash do you have and how will you allocate that cash in the coming year? >> Yeah. So again when we inked this deal gold was at 33 or $3,200. So we over raised um when we were doing our financing uh because we were budgeting at $2,800 gold. Um, so right now we have about 140 uh million dollars US in cash. Uh, we have about 20,000 ounces sitting uh with our refinery. Um, so we depending on the metal price, uh, we see our cash position growing modestly even after, you know, investing. This year is a big investment year. We're going to put around $125 million back into the mine. >> And why don't we talk about your valuation now because you are a relatively new company. So a big part of what you have to do in the coming year is create awareness. But why don't we talk about the valuation? Where is it and where do you want to take it? Because you are trading at a discount to many of your comps. So how will you close that valuation gap? Yeah, I I think we we just have to deliver on on on what we we we we say to be quite honest. Um you know, if you you look at our peer group, um with our resource and reserve base and our production profile, companies are trading, you know, around three three and a half billion dollars. Um and we're sitting at a a billion and a half. So, you know, what that would equate to is around 11.52 share price. Um, so we will close that gap. Um, again, to hit on the point that this is a very unique asset in Canada. Um, where we're talking about a 14-year mine life that we see potential going over 20. So, a lot of our NAV is clipped at a long-term metal price of $2,600. So yes, everyone has a lot of nav torque to higher metal prices, but commonly gold assets as you very well know are five to seven years. So we have significantly more nav torque than than any of our our our competitors given the duration of of our asset in in in Canada. >> And you have a lot of marketing lined up for Q1 of 2026. Maybe you can just touch on that just in case some of our viewers might be where you are and they want to come and meet you. >> Uh yeah, I I leave tomorrow for a threemonth trip. Um, so we're over in uh Switzerland, London, uh, Paris, throughout the United States, uh, over in Australia, Singapore, Hong Kong, uh, Beimo conference, TD conference, uh, PDAC here in Toronto, uh, then hosting a nice site tour for a few investors uh, right after PDAC. So, it'll be a busy Q1. Jason, as we wrap up, you've already provided a lot of detail on what you and your team will do in the coming year to optimize the mind, but maybe you can just summarize some of the news events that investors should look for in the coming months. >> Yeah. So, what one of the big things is is we're going to be doing our TSX mainboard listing. Right now, we're the biggest company on the on the venture exchange. Um you know it looks like we'll have um some index inclusion uh on the rebalancing in March uh which will will be a major major catalyst. Uh we'll have an updated resource uh statement using a higher metal price. Um uh in in Q at the end of Q1 uh then we're just starting off a 130 kilometer drill program. So you'll see a a significant amount of news flow coming from from the drill bit. Uh that will feed into the updated technical report that will be published in the middle of 2027. Uh and then in 2027 doing our NYSC uh American listing. >> Well, that was a great overview and a great update. This is a new company for me. So I want to thank you for spending time with us today and safe travels. >> Thank you very much. Take care. Heat. Heat.
Hemlo Mining Update | Jason Kosec and Jimmy Connor
Summary
Transcript
Jason, thank you very much for joining us today. So, you are the CEO of Hemllo Mining and Hemllo is the newest publicly traded gold mine in Canada, but the mine itself has been producing gold since 1985 and the mine was acquired from Beric. Why don't you take us through the process of how you and your team acquired this asset and how did it all come together? >> Yeah, thanks for having me on. Uh, quite a unique history to be quite honest. Um, our lead director, uh, Bob Cordermain, a reputation speaks for himself, mining hall of fame guy, was actually at Hemllo for two of the three discoveries, uh, back in the early 80s. So, his affinity with the asset and his knowledge on a geological level is unparallel to to to anyone else in in the industry. Um so with that and his relationships with CIBC and Mark Bristo um he was asked to come into the process um in early April. um him and uh our other co-founder uh Jonathan Odd um worked together at Dakota Gold as you know um they contacted me and we we we built a really an amazing team uh around this high quality asset. Um the process was very competitive. uh started off with about 35 companies uh dwindled down into phase two around 10 and then the final process uh of around four people well board total. Um it was extremely competitive. We were the only call it shell company in the in the process. um everyone else was multi-billion dollar producing companies uh operating in the area or or elsewhere globally. Um we have a very unique skill set with our team. Um we pride ourselves on on on our operational excellence. We have a very very strong uh mining and engineering team uh that sees a lot of value in in in optimizing projects and has done that multiple times over over their career. Uh and then a unique skill set on the geological side that you know we see a lot of potential where others may not myself being a structural geologist by trade. So, um, all of that it was it was a a lengthy process, very competitive process. Um, you know, the bids were all stacked on on one another. Um, so we did not overpay for it. And it was, frankly, a very unique time uh to ink a deal when, you know, gold price was $3,300. It is now moved $1,000 in our favor. Uh but more importantly, you're inking a deal at 2,600 long-term metal prices. Uh and never before in in in this market, as you know, have you seen such a decoupling from spot prices to long-term consent consensus prices. Usually around 15 uh 15% discount to spot. So, when you're talking about a 14-year asset that we see clear visibility and and potential to push over 19, 20 years, inking in at $2,600 uh is is is extremely um you know, value creative for our shareholders given the duration of of of the asset. >> And I didn't realize there was that much competition for that asset. So, good on you guys. But what was the final price tag? How much did you pay? So it was it it was 925 up front. So$875 in cash and and 50 in in in stock. All numbers we'll disclose and talk about today in US dollars. Um you know it's is a a very unique asset. It's a it's a piece of Canadian mining history. I I used to write papers on when I was in university. Uh and you know you could count on one hand how many you know we we believe the potential is 20 plus years. We believe we can we can have the potential to produce over 200,000 ounces peran and we're at around 140 now. You could count on one hand how many assets are like that in Canada and and and frankly in North America. >> And you threw out a few numbers there I want to do a deeper dive on. You mentioned that the mine life is currently 14 years. It produces 140,000 ounces annually. What's the all- in sustaining cost based on the last technical report? >> Yeah, so the last technical report has an annual uh an all-in sustaining cash cost of of of $1,400 uh over the life of over the life of mine. Obviously, there's higher years and lower years. Um for example, next year uh the the technical report had around 1956. >> So very high margin mine in in these middle prices. >> And one of the issues with Hemllo under barracks ownership is that it was under capitalized. Essentially they didn't care about the asset. They just wanted the cash flow. and you and your team want to implement an optimization program focused on converting resources and also making improvements in the mine and the mill. So I want to touch on each one of these elements. So why don't we just touch on resources first? What are your plans in converting these resources into reserves? Yeah, you know, Bareric is a, you know, very wellrespected company and honestly as a geologist, I I I really idolize Mark Bristo. Um, but you know, when you're going to allocate capital as Barrack and you know, $125 million investment can push you from 150 to 200,000 ounces a year. You could do that. or you could go drill off 10 million ounces at four mile. You know, I could tell you what I would do. Uh and they they did exactly that. Uh right, it's sub 5% of barracks overall production profile. Um what we are doing from a resource and reserve perspective is launching one of the biggest drill programs in North America. Uh this year we're drilling over 130 kilometers. Okay. Uh, a lot of that the the in two buckets. There's high definition drilling and growth drilling. Um, from the growth perspective, you know, to put it into perspective, Bareric was doing about $2 million a year in growth because obviously they were just harvesting cash uh for four mile and rig. Um, we are spending $20 million on growth and, uh, you know, I come from the OSCO group, uh, where we like to drill a lot. Um, and, uh, so we're we're we're we're very happy about that. Uh, and to drill off a million ounces in these types of systems costs anywhere between 20 and $40 million. So we see a lot of potential, a lot of value to be unlocked through the drill bit as it was completely underinvested. But I we understand why it was just so noncore to to a global giant like like Bareric. Um, so we understand why it was uh under capitalized, but you know, it's the story old as time where you look at, you know, what Jason Simpson did or Tony Makuch did uh when you pull assets, non-core assets out of major mining companies and really give it make it a core focus for for the team. There's a tremendous amount of value uh that that that can be unlocked. And so you said you're going to spend Beric was spending 2 million, you're going to 20 million and >> just on just on growth drilling. So our overall exploration budgets around $40 million US. >> Okay. So why don't we touch on that also? So when you talk about exploration, you're talking about regional exploration. >> No. So the way we do it uh is what we classify as growth is bringing ounces into the inferred category. Okay. And then what we classify as high definition drilling is resource to reserve conversion. So inferred into indicated indicated into measured. We want to get to a point uh that everything we are mining uh is measured material. Right now we're about 80 85% of the material that we'll be mining next year uh is measured. We want to get to a point where 100% of the material is is is measured. And another part of the optimization program is working on the mine itself and and I guess making changes to the infrastructure. What do you have planned there? >> Yeah, you know, it was it was very interesting. Um, you know, we talk about a very underutilized infrastructure here at Hambo quite a lot. Uh, very similar to again muscle white and porcupine. Um, the hoisting capacity is at 60%. So it can do 6,000 tons a day of war. There's a ramp that just broke through to surface that can do 2500 tons a day. So you're talking about 8,500 tons a day that you can pull from the underground. Our current mining rate is 3,500 tons a day. Um the mill capacity is 10,000 tons a day. So you would think that that is an obvious strategy that that Bareric can execute. the the the issue around that um and you could see a slide nine in our our corporate presentation is that when you run it at a very conservative metal price of $1,700 for reserves, the stoopes are scattered all throughout the mine. And when you flex the metal price to still a very conservative number at 2100, you you see very discreet sectors that can you you put one team in that sector uh which will drive a much higher productivity and a lower unit operating cost that will support the lower grade cutoff. Um, but you can't see that at a $1,700 metal price. So, by doing that, we've redone the whole life of mine design at that higher metal price. Um, which will drive that hotter higher productivity that could fill the hoist, fill the ramp, and still we're at 85% capacity at the mill. So, it's it's a very unique asset with respects to that. And again, we're not reinventing the wheel. the mine was designed for 6,000 tons a day on earth, right? Uh it was just um Barrett being conservative uh and and Mark doing a great job on preserving margins. Uh but we see that, you know, you in this metal environment, still being very conservative, still preserving significant margins, uh this will allow for much better productivity and a more fitfor-purpose approach for this this mine. And I'm sorry, Beric was using 1,700. What are you going to use? >> Uh, so start up until last year in 25 they were using,500. Then they use 1,700. Uh, we are just going back and forth with between 21 and 2500. So we don't have a a set number for for reserves just yet, but it'll be between uh those two two numbers. And now why don't we talk about the uh the mill because you also want to do some optimization changes here. What do you have in plan or what do you have in mind? >> Yeah. No, they they did a great job. Um that's one of the things when you buy assets from big companies like Bareric. Uh they do a great job of of when they they're 18 months ahead on their development rate. You know, commonly a junior would be six months ahead. So they do a great job with with with things like that. And especially to go back to the mill like they run two parallel lines right now. So the sag and the ball mill on the front end they'll run one line shut it down maintain it run the other line shut it down maintain it. The back end of the mill with the uh Nelson concentrator the tailing flotation cells and the cyanide detox tanks need to be upgraded. So from 3,800 to 4,800, there's no capital investment. From 4,800 to 6 to 6,000 tons a day, there's about a $10 million uh capital investment. And then to get to the full 10,000 um including the tenants around 32 million, which is all disclosed in the technical report. >> And so I want to talk about exploration drilling. Now Bareric did very little but you're going to do significantly more. What maybe you can just talk about that and what targets do you have planned? >> Yeah, there it it as a structural geologist it's quite fascinating and you know Bob Corder main like loves his geology amazing person to work with. Um and it's f hosted in in in two deformation events. There's an F1 fold, F2 fold. Um, so there's a lot of potential extending these fold closures at depth and there's multiple folds that have not been yet drilled. So the Ezone, Bzone, Dzone, and Azone are areas of significant focus for for next year. And why don't we just touch on regional exploration because I don't think I mentioned this but the Hemllo gold deposit is located along the Hemllo greenstone belt which is a very prolific gold region. Maybe you can just touch on that and if you've identified other areas yet that you want to test or target. Yeah, you know, uh the answer is is we have not properly uh evaluated the regional land package. It's a massive land package in an Archan granite greenstone belt. It's around 47,000 hectares. to say that there's a oneoff deposit of call it 25 historically produced. We see potential to get push it well over 30 million ounces. To say that there's a one-off 30 million ounce deposit and these types of rocks on a geological level, it's extremely rare. Um, so we will chip away at at at at the regional land package, but to be honest, there's so much potential uh just at the Hemllo brownfield site proper uh that that's, you know, we're talking we see potential to get over 20 years. So evaluating the regional scale uh on on an accretion basis when you discount ounces back is is something that we're we're kind of pushing off to to the future. But we'll pick away at it next year and over the coming years to properly rank and value the the targets. >> And why don't we talk about the timeline associated with this optimization program because it currently has a 14year mine life and you want to take it to 20. It's producing 140,000 ounces and you want to take it to 200,000. What's the timeline associated with doing all of that? >> Yeah. So, it's it's going to occur over the next call it year and a half. Uh, by the end of 27, we'll be at that 6,000 ton a day runway, which will equate to about around 200,000 ounces of of of annual attributable production. Um, it takes time. We got to order equipment uh which has already been ordered and and and staff up the the the site team. So it's not going to happen overnight. Uh by the end of this year we will be at that call it 48 100 ton a day run rate. So gradual increases um and we think we're conservative on those numbers. So why don't we talk about your balance sheet now and how much cash do you have and how will you allocate that cash in the coming year? >> Yeah. So again when we inked this deal gold was at 33 or $3,200. So we over raised um when we were doing our financing uh because we were budgeting at $2,800 gold. Um, so right now we have about 140 uh million dollars US in cash. Uh, we have about 20,000 ounces sitting uh with our refinery. Um, so we depending on the metal price, uh, we see our cash position growing modestly even after, you know, investing. This year is a big investment year. We're going to put around $125 million back into the mine. >> And why don't we talk about your valuation now because you are a relatively new company. So a big part of what you have to do in the coming year is create awareness. But why don't we talk about the valuation? Where is it and where do you want to take it? Because you are trading at a discount to many of your comps. So how will you close that valuation gap? Yeah, I I think we we just have to deliver on on on what we we we we say to be quite honest. Um you know, if you you look at our peer group, um with our resource and reserve base and our production profile, companies are trading, you know, around three three and a half billion dollars. Um and we're sitting at a a billion and a half. So, you know, what that would equate to is around 11.52 share price. Um, so we will close that gap. Um, again, to hit on the point that this is a very unique asset in Canada. Um, where we're talking about a 14-year mine life that we see potential going over 20. So, a lot of our NAV is clipped at a long-term metal price of $2,600. So yes, everyone has a lot of nav torque to higher metal prices, but commonly gold assets as you very well know are five to seven years. So we have significantly more nav torque than than any of our our our competitors given the duration of of our asset in in in Canada. >> And you have a lot of marketing lined up for Q1 of 2026. Maybe you can just touch on that just in case some of our viewers might be where you are and they want to come and meet you. >> Uh yeah, I I leave tomorrow for a threemonth trip. Um, so we're over in uh Switzerland, London, uh, Paris, throughout the United States, uh, over in Australia, Singapore, Hong Kong, uh, Beimo conference, TD conference, uh, PDAC here in Toronto, uh, then hosting a nice site tour for a few investors uh, right after PDAC. So, it'll be a busy Q1. Jason, as we wrap up, you've already provided a lot of detail on what you and your team will do in the coming year to optimize the mind, but maybe you can just summarize some of the news events that investors should look for in the coming months. >> Yeah. So, what one of the big things is is we're going to be doing our TSX mainboard listing. Right now, we're the biggest company on the on the venture exchange. Um you know it looks like we'll have um some index inclusion uh on the rebalancing in March uh which will will be a major major catalyst. Uh we'll have an updated resource uh statement using a higher metal price. Um uh in in Q at the end of Q1 uh then we're just starting off a 130 kilometer drill program. So you'll see a a significant amount of news flow coming from from the drill bit. Uh that will feed into the updated technical report that will be published in the middle of 2027. Uh and then in 2027 doing our NYSC uh American listing. >> Well, that was a great overview and a great update. This is a new company for me. So I want to thank you for spending time with us today and safe travels. >> Thank you very much. Take care. Heat. Heat.