Kuya Silver Q1 Production & Year-End Financial Review

0:04 Hello, everyone, and thank you for joining us for this live event. Today, we have a great event in store for you. First, we'll be hearing from David Stein, President and CEO of Kuya Silver, who will walk us through the key highlights from the financial results. But we also have a couple of analysts joining us today. We have Jake Sikelski from Alliance Global Partners and Brian Robson from Breakout Investors. So you get to hear their questions to management live here. And if time permits, we'll open the floor to questions from all of you in the audience. Before we get started, just a quick note, a replay

0:35 of today's webinar will be available after the event, so don't worry if you need to step away. So without further ado, I'll hand things over to David. David, the floor is yours. Okay, thanks Kyle. So, you know, as we ramp up production and start to report meaningful financial results. You know the idea is that we want to do that start doing these earnings calls regularly. Well quarterly. And so this is the first one. We are still working out the kinks and there'll be many more in the future, but I'm very pleased to do this one and sort of, you know, get the ball rolling, so to speak.

1:21 Talking about, we put out 2 press releases last week. One was our Q1 operations update. And the second one was the quarterly earnings from Q4. So because, you know, because we're doing the year-end audited financials, that takes a bit longer. So that's why the Q4 ends up being in April for us. But in about a month, we'll be doing this again, which will be our Q1, and that will be towards the end of May. So we're gonna be you know jumping right back on this in the next few weeks to do another update for you. We will be making many forward looking statements so please review our important notices either now or you can go onto the website and look at this at our presentation at your leisure.

2:16 So, just a couple of quick introduction slides just in case there are any new investors on the line today. But we've we're my silver mining company with our flagship project Bethania in Peru. That's mostly what we're going to be talking about today. We do have a couple of other silver projects the silver Kings project in Northern, Ontario And the JV with sumo holding which is in Saudi Arabia, which is called hadid Which is also a silver project with gold and in Northern, Ontario. We've got silver with cobalt. In Bethania we have silver, lead, zinc, gold, but mostly silver in actually all of our projects but especially at Bethania. So we're heavily, heavily weighted to silver. We love silver.

3:07 In terms of some of the I think the key highlights about Kuya and what makes us different from our peers. Well, we don't have very many peers. First of all, There are very few silver mining companies that exist publicly traded today. And of them, many, most of them are, you know, sort of around 50, 60 percent silver by revenue, which is OK. But we've got 90 percent. And that that makes Kuya, you know, up there among the top silver mining companies in terms of our exposure to silver. The Bethania mine, we're very blessed. It's high grade. The byproducts do not form a significant part of our overall revenue, although they are worth recovering. So that is why we get so much of our revenue from silver. D-risk profile. I think your biggest risk with junior mining especially is the time value of money. So the fact that we're already producing.

3:58 We've already done most of the heavy lifting for you. And now it's a matter of ramping up. We've got a fully permitted mining and mining friendly jurisdiction. We also have a very, very healthy cash balance, which we said in our last press release, 27 million US. So it's actually more than 30 Canadian and no debt. So we're low risk on the operating side. We're also low risk on the financial side. The multi-year growth plan, even though we're talking about short-term quarters here on this call, focusing on that, the long-term is really what's exciting. And I think the reason why you're investing in Kuya, the reason why I invest in Kuya is the long-term growth plan and the fact that we have such a long runway ahead of us to grow the Bethania asset is very, very exciting.

4:53 Capital discipline, no near-term need for financing. Certainly for the plans for Bethania, it's now fully funded for pretty much anything we can think of doing with that project going forward, especially these silver prices and then the valuation upside. We're still not getting really any value for future cash flow for this company. And I'm not going to talk much about that on the call, but feel free to ask me about it later. I have lots of views about it. I'm a former analyst myself, and I think that there's huge, huge upside when the market recognizes our cashflow. Okay, last intro slide is our 100-100 growth plan. I think when you really look at junior mining companies, there's a sweet spot out there that does exist. It's very difficult to achieve. But when you've got a company that can grow production and resources at the same time, That is the sweet spot where you have companies that do what really good or okay to companies that do exceptionally well and outperform their peers.

5:57 And I was lucky to find a few of those companies went out early on in my career and I feel like who is in that position today. So we're growing the Bethania mine right now ramping it up. We're going to talk about that with the quarter and then we're going to continue to grow it next year. We have plans to double production again to 700 tons per day from 350, which we expect to end this exit this year at. And then we can potentially grow it even further down to 2029 or 2030. So I think we're going to have continual growth probably for the next 5 years or so in terms of silver production from this flagship asset of ours. And then what goes along beside that at the same pace is the exploration.

6:45 And now we've really put forward put forth an aggressive exploration program. 20,000 meters this year mostly in the second half of the year. So there's going to be a lot of drilling, a lot of news, especially in Q3, Q4. And that's going to be very, very exciting because as we build our ounces, that further accentuates the value of the company as we grow production at the same time. So That's very exciting. Let's get into the quarter now. So in Q1, so we reported our Q1 operational update as well as our Q4 financials. With the Q1 update, we had, again, another record quarter of production. We should have a record pretty much every quarter as we're ramping up and Most importantly we did exit the quarter at 100 tons per day and we have you know been able to maintain that so far in April and so far in Q2.

7:50 And that'll be the platform for us to grow again to do the next jump in production. And we're so we're very, very happy about that. That's a really nice amount of production that generates quite a lot of revenue for us. And, you know, we'll be able to speak more towards the cash flow when we report our Q1, you know, in a little less than a month.

8:14 In terms of how our production stats all break out, you know, we presented this table in the press release. You know, some of the highlights include the revenue we're generating. You know, just remember that that's, you know, offsetting all of our expenses and, you know, even some of

8:34 our corporate G&A as well. And, you know, so that puts us in a really, really nice position. And of course, that number should grow every quarter. We don't even need silver prices to go up because we should be producing more silver next quarter and the following quarter and then in Q4 again so that's that's something that should become more and more meaningful as the year goes on and that you know that That's coming from just under 20,000 ounces sold. $82 selling price was our average for the quarter. And we got 91% of our revenue from silver. 1 error we did find on this chart after we published it was the metal processed. There says 14,000. We were missing one of our batches of silver, silver lead concentrate in that number. So it was actually over 20, a little over 20,000. So that matches up then with the other numbers. We're not gonna, you know, update this time until maybe at the end of the month when we put out our financials out. It's not really material, but

9:39 we did have somebody point that out and I wanted to recognize that. All right, the year-end financial summary. I mean, this seems like ancient history now, but things were going well at the end of the quarter, at the end of 2025, and then they got even better in January. So this is exciting. You know, we did get some revenue in q4. Obviously, we had way more in q1

10:06 We ended the year with 9.3 million in cash. We and almost 10 million in working capital We did then did the financing which was really predicated on the mill mill acquisition But that went really well and you know now we're sitting with around 27 million of cash.

10:25 So that's a really, really strong position to be in. And Given what's happened with the share price recently, the volatility, which I think is largely related to the Iran war, you know, I think the valuation of the stock, especially when you consider how much cash we have, has gotten pretty low.

10:48 So that to me is looks like, something that needs to turn around. But that's to some degree up to us as well to deliver the results and we're planning on doing that. So the financial strength and the outlook, cash position I already mentioned, that's in US dollars, don't forget. The Camille acquisition, we are expecting to close that soon. We're in the final throws of the due diligence there. It's taken a little bit longer than I hoped, but it is well, well in progress and there's no significant concern there on our end.

11:27 We've increased our land package and also increased the drilling program. So you may recall that we talked about 4,500 hectare land package. We've added to that in 2025 and early 26. We now have over 5,600 hectares around the Bethania mine and we will be doing a lot of drilling this year, starting basically in Q2, and then throughout the rest of the year.

11:57 And the 350 tons by the year end, That's our phase 1. We are still on track to complete that by the end of the year, which is not that long, far away now. It's almost May 1st. So we're looking at 7 more months and we should be there. The ramp is the new ramp that we've, we have talked about in the past and and and we we had a press release about it in late in the second half of 2025. That is going to be a key point part of our of our ramp up to 350 tons per day And we'll again talk more about that and give more details about that in the coming quarters.

12:38 In terms of upcoming news and catalysts, we've got our Q1 financial results, which will come out in late May. So that's gets back on sort of the regular quarterly cadence of financial reporting. And we are planning on issuing more detailed guidance at that point in time. So we have said

13:01 with our press releases last week that we're on track to get the 350 tons by the end of this year but we'll provide more details on that In the next set of press releases or press release at the end of q1

13:16 or with the Q at the end of May, I should say. Bethania Exploration, that is going to be very, very exciting. We can't wait to get results out into the market there. You know, we're drilling very low hanging fruit extensions of the veins that we're already mining. So we're very confident we have good results coming there. Although, we were still in the early days of that drill program.

13:40 And the nice thing is once we get that first press release out, we should be able to put another one and update out every 2 to 3 months, probably for many, many years. Just because we've approved the 20,000 meters in 2026, doesn't mean we're going to stop drilling. We're likely going to keep on a similar pace, if not even greater in 2027.

14:04 And then all the other, you know, kind of things that we have hanging out there

14:09 that are frankly adding value. So we do want to talk about them and report them to the market. Are the Camilla plant closing? Silver Kings. We have been doing some work in the background there. We want to, you know, update the market on that later this quarter. And also, Hadid, we are starting a neutral program there in Saudi Arabia with our partners' support, and we'll have results on that probably in the next few months.

14:37 So that is that's kind of the presentation before we go to the Q&A, though, I did want to answer one question that came to me by email from an analyst and I believe a shareholder in Germany about our energy exposure. And this has been a question that I've been getting fairly regularly since the end of February when the Iran conflict slash war started. So let me let's talk about it. So I think in Peru we are in a very very

15:15 We're in a very good position. We're very fortunate that Peru has a diversified and relatively disconnected energy industry, disconnected from the global crude oil markets and especially the Middle Eastern crude markets. There's really no exposure there. So in terms of electricity, Peru is a self-sustaining electricity producer. They produce all of their electricity with domestic sources. About 60 percent of that is hydro and renewables and 40 percent is from their own domestic natural gas production. Power costs in Peru tend to be in line with global average and it's not tied to the Middle East or oil market.

16:03 Liquid fuel and crude imports are largely coming from the other South American oil producers like Ecuador, next door, Brazil and Columbia. So in terms of our specific exposure, we have 3 different jobs in

16:21 the value chain that need energy. One is the plant. The biggest one is the plant, and that's serviced by the national power grid, which gives us lower costs and stable pricing. Remember, that's not tied to global fuel prices whatsoever.

16:39 Secondly, is the truck fleet. We do a lot of trucking because we're trucking between the ore, the mine and the mill. And then we truck concentrate as well, which is a smaller portion of our trucking costs. Haul trucks in Peru are either diesel or natural gas and there's kind of that creates a local competition

17:03 where you know, essentially 1 can't raise their prices too much Because then it becomes uncompetitive the vehicles can also be retrofitted to switch between diesel and natural gas as well So we have not seen a significant increase in truck costs so far. And and so and that's that's something that we would expect to be controlled as well. You know there's going to be general inflation. We expect that in everything over periods of years. But we're not seeing significant exposure to the Iran conflict with the truck fleet, with Camilla.

17:49 Even with our mine power, the diesel price hasn't gone up that much. Again, that may be because, you know, Peru does have some Peru is buying oil from its neighbors, not from the Middle East. And they do have some of their own refining capacity in country as well. So in general we're not seeing big increases and even if the oil price went to $200 really that our only direct exposure would be with the diesel at the mine, which is the smallest of the 3 uses. And, you know, we'll try and put some more numbers on that when we, when we report, you know, results in future quarters. But I wanted to answer that question qualitatively for now, because I do get that question a lot.

18:37 And with that, Kyle, I think we could open it up for questions. Great. Can you all hear me just fine?

18:49 Yeah. Perfect. Thank you so much for the update David. I think now I would like to invite Jake on for any questions and then following Jake we'll have Brian on. So Jake if you're in the room please come back on stage and we're ready for your questions. Thanks Kyle and thanks David for taking the questions. Just starting on the Camilla plant and in the planned expansion there post-closing, I'm curious are there any long lead time items that you still need either for refurbishment or to reach that higher 300 to 350 ton per day rate post-closing? Or are you pretty much ready to go from a procurement perspective?

19:34 Look, in general, the equipment that we're buying that's on our list, we have our shopping list and the equipment is all relatively small stuff that can be sourced domestically. So we do not expect any significantly long lead time items. When you, you know, long lead time items in mining and processing tend to be if you need something custom made and often that's overseas. And there's nothing that we need that would fall into that category. Okay, that's helpful. And then just on the ramp of throughput at Bethania this year, Can you just touch on a few development milestones we should look out for over the next few quarters as you ramp toward that 350 ton a day target and maybe the cadence of the throughput ramp over the next few quarters if possible?

20:33 Sure. So again, let me emphasize that we do plan on giving more precise guidance about this at the end of May, when we report our Q1. So we will provide more details about this. But again, I can answer your question qualitatively. We have found as we are, you know, kind of updating our mine model and our ramp up model, that the ramp is becoming a real centerpiece of the mine expansion here, the mine growth to 350 tons per day, the new ramp. So that's something that wasn't in our PEA of a few years ago.

21:21 The PEA had a design to ramp up essentially using the existing infrastructure.

21:27 And we've really taken a bit of a pivot to focusing on the ramp to get more tons out of the mine and really essentially allow us to decommission or I mean maybe we won't like formally decommission but we won't need to use the other adits to to move material out of the mine. What that means is that we probably have less growth in Q2, Q3. It's going to be more related to, you know, opening up more working phases and getting more development done. And then a bigger jump in Q4, once we complete the ramp. And so I'm sure people will want updates on the ramp and how that's going. I mean, and we plan on giving that, but we're sort of in the process of just starting the ramp commissioning now or in the next few weeks.

22:29 Makes sense. Okay, that's all on my end. Thanks again. Yeah. Great. Thank you so much, Jake. Brian, if you don't mind jumping on stage. Hi. So I guess continuing on with Jake's question as far as the timing on the tons per day side. Firstly,

22:53 as it relates to the ramp, I thought that there's been some possibility that you might outsource or contract that work. Can you tell us where you are in that process and if you're doing so, what kind of feedback or what have you learned at this point? Yeah that's a great question. So we are looking to contract that job out and we're you know, we're in the final stages of awarding that that that work What that means is it'll allow our Crews our staff that we have hired that work for KUYA, or our subsidiary down there, Minerator de Plata, they can focus on production and development while the contractor focuses exclusively on the ramp.

23:48 And so we're quite excited about that as a way to optimize our development here. And of course, it's something that we can easily fund now with our strong cash position. Whereas maybe a year ago, we wouldn't have been able to do that. So that's very exciting. And yeah, we are,

24:13 I mean, in terms of feedback, look, it's the Peruvian mining industry is busy. There's lots of other gold and copper mines there as well as silver, who are all enjoying high prices and wanting to do jobs like, you know, extra development and drilling and all this stuff. So we do have to compete with everyone else in the Peruvian mining sector. That's probably slowed us down a little bit, but we are in, as I said, in the final stages there, and we're confident that that job will get started very soon. So how does that process work? I mean, obviously, you're saying, you know, we'd like this completed by the start of Q4. Do they give you pushback and say, that's challenging?

25:01 Or have they given you feedback that says we can accommodate that timeline No, as long as long as we get it started pretty soon. There should be no issue there Okay, and then I'm gonna I guess I think you spoke to this And probably you spoke to it as clearly as you're going to, but I'm gonna nonetheless see if I can nudge you further.

25:21 You talked about providing further guidance as far as the rate in which you are going to be increasing the tons per day. But I guess my understanding, And I think you, as I say, I think you've already supported that is that it's quite modest in Q2 and Q3. And then the slope steepens rather significantly in Q4, just in a general qualitative way. Is that accurate? Yes, that's, look, we are part of the reason why I don't want to give anything more detailed than that right now is because, you know, we've got a bunch of new senior hires and they're all in the room with our CEO working on, you know, updating the mind plan, which is what we want them to do and then we want them to buy into it and you know and and that's a real you know positive process that's going on right now.

26:18 So look, yeah, that's why very, very top level view, that's how I personally see the ramp up going, but we'll be able to provide more details and more support on that again in a couple of weeks time. Okay. Okay. And your grades have been a bit, I'll say volatile. And I know that there's been times where you did quite a bit of stockpiled material, other times where it was maybe more of a

26:51 mixture. But as we go through 2026, what do you, how would you kind of guide us to look at what we should see in terms of average grade? Sure. Let me explain the volatility in the last few quarters first, because it is actually different reasons why the grade was lower in Q4 versus Q1. So in Q4, silver price started moving up and we decided to process some of the historical stockpiles. This is material that was mined before we or yeah, it was mined before we even acquired the Peru, the Bethania mine. It's been sitting outside for 10 years weathering and therefore is partially oxidized.

27:41 But is, you know, is, is there's some value there? You know, it's 345 ounces per ton, these various piles that we have. And so we decided to try processing some of those and we did and you know, that was in the Q4 results, lower recoveries of course, because the oxidized material and also because of the grade, you know, there's a there's a strong correlation between grade and recovery that'll be the same with pretty much any mine in the world and And then on top of that, you know the the oxidation, you know hurts the recovery a little bit Then in this quarter We didn't mind any of that oxidized historical, or we didn't process any of that historical oxidized material.

28:27 We did take some lower grade development material and sort of that, you know, that maybe 3, 4 years ago, we might have thought of as waste and we reclassified it as ore because, You know, the silver price is a lot higher and it was worth processing. So that that is so essentially the the grades in Q1 are sort of a blend between let's call it more of our grade type material. And then some other lower grade material that we're picking up as we dig these tunnels underground. Right, you go through, you know, might be 4 or 5, 6 ounces per ton.

29:15 It's worth processing that. It's worth blending that in with your higher grade material because you know you can make money at those grades. And of course a lot of mines what we consider to be low grade, that's their normal resource grade. So that's another factor. But anyway, that's what's happened in Q4 Q1. In terms of going forward Brian I think there'll be also a combination especially in the next couple quarters of additional development material because we're still doing a lot of development. We have to do that to get all the working faces ready to produce 350 tons per day. So there's a lot of, still a lot of development going on. That creates the potential for lower grade material that we might want to mix in with our with our you know sort of stoping average grade material that we have. So that's what I would I would say is that we should evolve or we should trend upwards towards our resource grades by next year, but this year will continue to be volatile because of all the developments that's going on.

30:27 But we're not going to process stuff that we lose money on. So Let's just be clear about that. We know anything we process, we're gonna be making money on. Last question for me. The Camilla processing plant is 150 tons per day. Can you walk me through what you need to do and I guess what your comfort level and your ability to execute on that plan to get it to 350 tons per day or essentially to get it to match your increased production Yeah, sure, we're very confident I mean one thing to keep in mind is that the scale of the processing and mining that we're working with is very small compared to a lot of other mines in Peru and around the world.

31:16 The reason we can do things at such a small scale and make so much money is because of the high grades that we have. So it's not a bad thing, but that's just the reality is to go from 150 to 350 is actually, it sounds like a lot percentage wise, but it's actually not a very big job. It's, you know, it's still a very small plant in the grand scheme of things. So specifically what we need to do is we need to add some milling. 1, you know, I believe 1 new mill there, small one that's easy, easy to, easy to procure flotation tanks. And we also are adding drying equipment there to reduce the humidity of the concentrate.

32:05 And those are the main things. And then you have to basically hook everything together with piping and pumps and electricity. So it's honestly not that complex of a job and we're very confident that we can get it done pretty quickly. Okay, very good. Thanks. That's it for me. Perfect. Thank you so much, Jake and Brian. There have been a few questions in the chat, David. So if you still have some time, I'd love to ask you a few more. I have Christian on the line as well, just to let you know. Okay. So Mark has a question here. You've talked about 5,000 meters of drill and underground in the first half, 5,000 meters in the second half, and 10,000 meters of surface in the second half.

32:53 Would you provide an update on the drilling program and can we expect drilling results to roll out in Q2? Sure. Getting the drill rigs mobilized did take a little bit longer, but we now have them. So it's quite possible we will have results later in Q2. It depends on how quickly we can get some of the assays back and all that. You know, certainly compared to 2021, when the last time we did a drill program in Peru, the industry is a bit busier, there's more drilling going on, the labs are gonna be busier, but we're gonna push very hard to get results out soon because we want to see them just as much as you do.

33:47 And then, as I said in the intro, I think we'll, you know, we'll have a press release out every 2 to 3 months after that with drilling updates, both from underground and from the surface program, which will start in the second half. So the results will be very much weighted towards the second half of the year with probably at least 15,000 meters being drilled in the second half of the year, but we'd like to get that first batch of results out as quickly as possible. Thank you. Sergio saying congratulations on the great quarter and thank you for the updates. How does it impact the plan if the Camilla plant acquisition doesn't go through as intended? Well look, this whole time we've been processing at Camilla and they, you know, it's been, it's been great.

34:44 We have a good working relationship with them and we get good results and you know they more or less listen to our advice and sometimes we can make changes to improve the process even when before we even own it. So you know it's been going well and I think our plan would be to continue to use Camilla, regardless of whether we close the acquisition or not. But again, we really do believe that we're going to close this pretty soon. With that being said, there is, it is a locally competitive market to do processing in the area that we are. There's quite a few other mills and That's always an option if we need additional capacity.

35:35 David, do you mind going back to the 100-100 plan? Slide, please. Sure. Mark's just wondering if you could please go back to the 100-100 and a high level view of the path to matching resources with anticipated production? Sure. So just let that fire truck go by. So I think as we go through 2027 so I think right now we have enough resources to mine at 350 tons per day for many years You know our PEA had a seven-year mine life to it. So for an underground high-grade vein mine, that's a very, actually a very long mine life because normally it's shorter and you're kind of Adding as you adding reserves as you go. That's more. That's usually how a underground vein mine works of course, we we we know we can do a lot better than that and obviously we've got the Money now and then and soon soon as well the cash flow to drill aggressively and to expand resources.

36:50 So let's look at 2027. 2027 we're going to be we've got a plan to expand Bethania to 700 tons per day. So If you work out our grades that we're mining or that we expect to mine, that would be something in the order of 3 million ounces per year. So we probably wanna get the resource up to, you know, somewhere between the total resources of which some of them are going to be, you know, measured, indicated and, and inferred some, some category, some division of the 3 categories. But I think the total resources we'd like to see is, I mean, at least 30 million and may, may, you know, maybe more, 30 million ounces, and then, you know, heading towards 50 and eventually 100 million ounces, right?

37:38 So I think as long as we're seeing the signs that we're heading towards 30 million plus, then we we should be able to we wouldn't worry too much about mining 700 tons per day. Beyond that, and can we get that by the end of 20 27? Absolutely. We're going to do a lot of drilling this year. And as I said, we'll we'll be continuing into 20 27. It's just likely it'll be more. It'll be more driven by the cash flow of the mine, the budget, and maybe even we go more than 20,000 ounces next year. We'll have to see. But based on our historical discovery rates and based on all the silver vein systems, both at Bethania and also the satellite vein systems, we're very, very confident that we can get there in the next, you know year to 18 months by the time we need that resource for the Expanded production of 3 million ounces a year which wouldn't be until early 2028 or beginning of 2028 In terms of going beyond that to let's say 5 million or more, we will need to jump the resources up even more, I think, to kind of 50 to 100 million ounces. I think anywhere in that range we can probably comfortably be looking to produce 5 million ounces a year.

39:01 And then that would be an expansion of the Bethania plant at that point. Which, you know, which we, before we were going to acquire Camilla, remember we were going to do it all with Bethania. And now Camilla gives us a bit of a bridge where we can, you know, do the first few years of production with Camilla and then eventually move the production more towards Bethania or maybe entirely towards Bethania. So that would be the idea there. And again, I think we've got plenty of time to do that exploration and get those resources before we'll need it on the processing side. Thank you for that, David. Could you discuss your operating costs and how you might expect those to improve, particularly on a per unit basis as you ramp production?

39:58 Sure. So one thing is we're not reporting all in sustaining costs yet because we're not classified as being in commercial production. So that's something that will happen between now and the end of the ramp up. And actually we do plan on addressing that in the next update as well at the end of May. So that is something we do have our eye on and as a management team is when do we declare commercial production and at that point then we start reporting all of our costs as we essentially write off the costs and then that becomes our all in sustaining cost, our ASIC. And that's something that I wouldn't expect us to do the next couple of quarters, but definitely before the end of the year, we have our eye on that.

40:54 So with right now, if we're, I think it's, I can't really give any more guidance than that right now. When we come out with our Q1 financials, I mean, if you see on a cashflow basis that we roughly broke even, just hypothetically, then obviously that means our all-in sustaining cost was $80 an ounce, which is very high. Right. But, you know, at least we're not losing money. And the reason is, is that when you're starting up a mine, you have a lot of fixed costs. And of course, there's variable costs, which, you know, the variable cost is what you use per ton to produce each each ton of rock and each ounce of silver.

41:44 And then your fixed costs are just fixed no matter what happens. So your fixed costs are very high in the beginning and your variable costs are low. And then what happens is, is you produce more, your variable costs keep going up, your fixed costs stay more or less the same. And so your overall costs per ounce or cost per ton go down and that's what we expect. So we you know we know that our numbers from the P.A. For 4 and a half years ago now are going to be out of date. I think our average on sustaining in the PEA at a $25 Silver price was $12 an ounce over life of mine. It's going to be higher than that, no question. But it's still I think going to be very low relative to the industry and we'll be able to say more about that in the coming months.

42:35 Great. So we've discussed the drill program underway already. We've also discussed how exploration fits into the bigger picture beyond phase 1. But what are the results you're most eager to see come back this year? Look, I think I think the. I'm eager to see everything, Honestly, because it's all good. It's all it's all has the potential to add huge value. I think, you know, obviously drilling the veins, the veins of depth, the ones that we're mining right now, Dositomayo, Espinola, Victoria. That's kind of the low hanging fruit. So we're expecting them to be good, but at the same time, you know, adding ounces and adding resource that we know we can mine very soon adds a lot of NPV to the project, you know, because that's the time value of money. There's not a lot of time to wait before we we could produce those. So those are potentially very, very valuable. I think as we drill off to the east towards the hilltop zone, that again, because it's on the Bethania property, the, you know, the Santa Elena mining concession where the mine is we've got that's got gives us huge huge upside as we start to you know define potential resources on the eastern side on the eastern flank of the mine.

44:05 And then all the regional, you know, the regional drilling, very excited about as well, because we really, we know these veins are at surface, we know they've been mined in the past by various artisanal miners. So again, we're very, very confident that there's something special, something potentially big in at least a few of those targets. And hopefully all 6 of them are multi tens of millions of ounces. But even if only 2 or 3 of them are, it's obviously huge for us. So, and we're gonna, you know, we're gonna target the, what we think are the best ones first. And that gives us the highest chance of making a big, big splash with the surface drilling results. So I'm honestly excited about all of it. We'll obviously get the deep drilling, the deep extension drilling, that'll come first.

44:54 So that's obviously great. And Mark's also wondering if you could elaborate on the maiden drilling at Hadid and your plans there? Sure, there are, you know, our ourself and our partner just approved a new drill program, which is might've started already, if not very soon. And so if you recall from our last press release, I'll actually, I do have my other slides in here. So I'll just go to that slide just to talk about that. Here we are. So this is from our corporate deck, which you can download, which you can go online and get anytime on KuyaSilver.com. So if you look at the rectangles there with all the dots, that's the area that we're going to focus in on, where we found a cluster of these silver gold veins that are basically come right to surface.

45:58 And the current drill program is focused on a few of the best zones where we are the best veins, where we see the thickest, the potential for intersecting structures to blow out. And really we want to build up some tonnage and obviously, you know, we know the grades there because we can see it hundreds of grams per ton and sometimes into the thousands, but we really want to build tonnage there to make a more meaty project. And so our geologists have, I think, a great idea with the drill plan. It's currently being implemented now and we'll probably have results on that sometime in the second half or later in Q3. One more question for you, David. Thank you for addressing all these questions today. We got one more. Take this as your closing remarks and we can wrap things up here and you can go on with your day.

46:56 You closed Q1 with roughly 27 million in cash and the company has said no additional financing is expected to hit phase 1. How much flexibility does that give you if timeline shift and how does the current silver price environment factor into your capital planning? So, if you take the 27 million that we have right now and you factor in what we are planning to spend on or allocate to the Camilla acquisition, And then you also can deduct some capital for the exploration and the ramp, sort of take that out of the mine operations for the time being.

47:47 Then, you know, we still should have something like 10 million dollars leftover. And that's if the mine breaks even. And we expect the mine to do much better than break even. So then you're sort of adding to that 10 million position with whatever cash flow we can get from the mine this year. And then obviously next year is a whole different story with the potential cash flow from 1.5 million ounces a year. So I think that's the best way I can answer that right now. Look, that does assume a certain level of silver price.

48:36 I mean, right now we've got 75 dollars ish and that's, you know, we don't need that high of a price in order for us to not draw down on our cash. Because obviously, while that might be kind of a break even price right now as we increase production, then the break even price drops to 60, 50, 40, below 30 eventually. So that's kind of where we're heading with that. So I think, you know, the balance of risks with what the silver price is, it's not going to make it. It's not going to matter too much. Obviously, if it goes way higher, then we've got a different problem, which is like how to allocate excess capital, you know, which is a good problem to have. You know, do we buy back shares or just, you know, build a war chest to do acquisitions or whatever.

49:36 That's if the silver price goes significantly higher than $100 an ounce. But where it is today, it's not going to dramatically, it's not going to significantly affect our plans I don't think for the next you know 6 to 9 months and then after that it's really a cash flow story from from the mine anyway. I always appreciate your outlook on the prices of metals. Where do you see silver end in 2026? Well unfortunately I see silver and gold have been tied heavily to what's going on with Iran and That's very difficult to predict. My guess is that it drags out longer than people think. And so we're kind of probably trading in this range. I don't know if it'll still be that way at the end of the year, but definitely for the next 3 to 6 months, I think we'll be in this, call it 60 to $80 range for silver and something kind of similar range bound trading for gold.

50:42 And that's my best guess as to what happens. Still very good for us. We don't you know we don't need higher prices. We've got a great project with with high grades. But obviously then I think we set up for a bigger move once the market and governments kind of have to lick their wounds and print more money and kind of figure out all the implications of what's been going on this year, I see more money printing and more inflation in the coming years. So that's going to be that should be good for gold and silver. Definitely. And yes, nothing wrong with 60 to $80 silver.

51:29 David, Thank you so much for this earnings call. Really appreciate it as well as the analysts jumping on the call to ask your questions. If you like this format, please let us know. If you do want to request a meeting, I'll give it a few seconds here, but you can request a meeting with management with the request meeting button at the bottom of your screen. And the replay will be available here within the next couple of hours. So keep an eye out for that if you joined a little late. But thank you