Wesdome Gold Mines (TSX:WDO) Q3 2026 Earnings Call

0:00 Good morning. Welcome to West Dome Gold Mines conference call to discuss the company's financial and operating results for the three and nine months ended September 30th, 2026. As a reminder, this call is being recorded. Your host for today is Trish Moran, West Dome's Vice President of Investor Relations. Please go ahead.

0:24 Thank you, operator, and good morning, everyone. Before we get started, I'd like to point out that during today's call, we may make forward-looking statements as defined under Canadian securities law. I ask that you view our slide presentation for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Please note that all figures discussed on this call are in Canadian dollars unless otherwise noted. Our press release, MD&A, and financial statements are available both on CDAR Plus and on our corporate website, westdome.com. With us on today's webcast is Anthea Bath, West Dome's President and CEO, Phil Yee, our Chief Financial Officer, Tyler Mitchelson, our COO, Jonah Lawrence, SVP Exploration and Resources, Raj Gill, SVP Corporate Development and IR, Kevin Lonergan, SVP Technical Services.

1:16 Following management's formal remarks, we will then open the call to questions. And now over to Anthea.

1:21 Thank you, Trish. Good morning, everyone. We are reaffirming our 2026 production guidance of 180 to 205,000 ounces. Our fourth quarter is expected to be our strongest of the year, with both Eagle River and Kena finishing within their respective guidance ranges. Consolidated production is expected to be below the midpoint of guidance, with all in sustaining costs towards the upper end of guidance. Thank you very much. Gaps in workforce planning reduced equipment utilization and productivity, delaying the mining sequence. Two high-grade stoves from Kina Deep were shifted into Q4.

2:20 Because of this, we processed a larger share of low-grade ore from Preskill, impacting the overall free-grade to our mill. We have identified the causes and we are implementing the staffing and the planning changes needed to improve execution. Our Q4 outlook is reinforced by available high-grade inventory and operating progress already achieved early in the quarter. At Eagle River, key stoves in the sequence are now confirmed and drilled off. At Kena, improved staffing is lifting productivity, stove inventory has increased, and Preskill is moving into higher-grade production sequence and higher tonnage. Tyler will cover these developments in more detail. Safety performance continues to improve with a total recordable injury frequency rate down 29% from the third quarter of last year.

3:10 I'd really like to thank my team for the great progress they continue to make. Safe work, sound planning and consistent execution remain fundamental to the company that we are building. The quarter reinforced a key lesson. As our mines grow, The operating cadence that supports them must also grow. Development, maintenance, equipment, and workforce planning must function as an integrated system to deliver a reliable supply of all. Three years ago, we set about a deliberate strategy, rebuild our operating and technical capabilities, understand our geological systems, and then grow. We now have a stronger technical foundation. Eight year reserve based plans at both our mines, the largest reserve base to date, and geological models that are now increasingly informing our mine plans.

4:03 Our priority is to translate that foundation into consistent operating performance and disciplined growth. The technical reports we published earlier this year were the first public demonstration of that work. That work is now showing up in our operating results. Eagle River achieved record quarterly mill throughput in quarter three and tons milled up 20% this year across both our operations. The task now is to convert those gains into consistent ounces quarter after quarter and we're moving up the curve and I expect this performance to keep improving throughout 2027. The drill bit is also strengthening our confidence. We've always believed that geology at both mines was significant. What has changed now is that the concepts that were hypotheses not too long ago are being supported by real draw results.

4:52 At Eagle River, high-grade structures continue beyond the current resource, supporting the potential for a larger mineralised system. We also see potential for a hub-and-spoke bulk tonnage opportunity, adding production upside to the Eagle River complex. At Kina Deep, we are intersecting wide mineralised zones in the Northernite football, close to infrastructure. Numerous other opportunities are becoming evident as we showcase the potential of the system at Kina Deep. At Kina East, reorientated drilling at Shore Key returned 106.5 meters at 3.1 grams per ton, a result that warrants further drilling to establish continuity and scale. It's early days, but the results are trending in the direction we expected.

5:38 We measure the progress against our strategy with four tests. First, is the exploration confirming geological continuity and near-mine opportunities close to our existing infrastructure? Second, is the step-out drilling showing that our high-grade structures continue? Third, are we confirming open pit and underground bulk tonnage mineralization that could support meaningful expansion? And fourth, are higher volumes and better use of our infrastructure lowering our unit cost per tonne? On all four, the evidence is building and we expect 2027 to further show this progress. Over the next year, our focus is conversion, turning exploration targets into larger, more substantial resource base. At Eagle River, we aim to demonstrate its potential as a district scale mining complex with open pit and underground sources similar to other operations in the region.

6:34 Throughout, we'll protect our margins through cost control and discipline planning. At Kina, we have an active exploration program. At the Kina deeps, we will continue to explore the normal night footwall and parallel zones. At Kina East, we'll keep testing for the scale and the breadth of the system and advance our understanding of the corridor, including Schauke 10 and the 134 and Dubuisson zones. Finally, next year, we'll begin the global model work up at Kina North as well. This ambition is grounded in our track record. Since 2016, West Ham has roughly doubled production every four to six years. We believe our existing assets provide a credible path to the next doubling and potentially more over the next five to 10 years. Our job is to prove that step by step through drilling, through conversion, planning and proper execution.

7:24 We will pursue this growth from a position of financial strength. Our recent dividend declaration reflects our disciplined approach to allocating our owners' capital. With a debt-free balance sheet and strong liquidity, we are well positioned to fund our growth internally while delivering consistent cash returns to our shareholders. For investors tracking our progress, the near-term milestones are our fourth quarter delivery, commercial production at Briskill, our upcoming 2027 guidance, Our next reserve and resource update, conceptual studies on our bulk tonnage targets and continued exploration results from both districts across the year. Our media priority is strong execution. Our longer term objective is to turn the potential of these two districts to sustained growth in cash flow and value per share. I will now turn over to Phil.

8:17 Thank you, Anthea. Good morning, everyone. Turning to slide six, third quarter 2026 revenue was 251 million, net income was 90 million, equating to 62 cents per share, and EBITDA was 157 million, all at higher levels than Q3 2025 results, due primarily to a 23% increase in the average gold price, partially offset by a 12% decrease in ounces sold as a result of lower production at Eagle River in Q3 2026. Net cash flow from operating activities was $102 million in Q3 2026 and free cash flow was $52 million, equating to $0.36 per share. Both cash indicators lower than Q3 2025 levels.

9:05 The year-over-year decrease in quarterly free cash flow reflects several factors resulting from the lower production in Q3 2026. including lower net cash from operating activities, higher mine exploration and development costs, and higher sustaining capital at Eagle River. Year-to-date, West Home has generated nearly $220 million in free cash flow, and with a strong fourth quarter expected, we expect full-year free cash flow to exceed last year's record $278 million. And if the Canadian government's recently announced Productivity Mega Deduction Program is passed, this could have a further positive impact on 2026 and future years, as the policy will be retroactive to September 15, 2026.

9:53 The new federal program allows qualifying businesses to immediately expense for tax purposes 100% of the cost of eligible capital investments and Canadian development expenses, in the year the asset becomes available for use or qualifying expiration drilling has been incurred rather than depreciating it over time. Turning to slide seven, on a consolidated basis, all in sustaining costs were $1,789 a US per ounce sold in the quarter, 26% higher than the Q3 2025 ASIC of $1,419 a US per ounce sold. This was driven mainly by the lower volume of gold sold in Q3 2026.

10:38 At Eagle River, Q3 2026 ASIC was US$1,843 per ounce sold, compared to US$1,203 in the third quarter of last year. The increase reflects a 25% decrease in ounces sold, combined with a 31% increase in sustaining capital. At Kena, Q3 2026 ASIC was $1,713 US per ounce sold, compared to $1,899 US in the third quarter of last year. The lower ASIC reflects an 18% increase in gold ounces sold, combined with a 40% reduction in sustaining capital, driven by a delay in commercial production at per scale to the first quarter of 2027. Consolidated ASIC per ounce sold is expected to decrease in the fourth quarter, Thank you for joining us.

11:55 as a result of the timing of equipment deliveries and growth expenditures. Our full year total capital spend is expected to meet 2026 guidance of $205 million. WestDome is expecting higher growth capital spend in 2027 to support the company's exciting organic growth strategy at both assets. Corporate G&A was $6 million this year. This quarter, a decrease of approximately one-third year-over-year and down about 45% from Q2. G&A is lower in Q3 2026, now that the technical reports are completed and behind us. Turning to slide 8, we closed the third quarter with a cash balance of $380 million. Our balance sheet remains debt-free, with available liquidity of $735 million as of September 30th. Most notably, the $380 million cash balance is after returning approximately $50 million to shareholders in Q3 of 2026.

12:55 This includes $46 million through share repurchases under a normal course issuer bid and $4.4 million through a quarterly dividend paid at the end of September. Since launching our share buyback program last November, we have repurchased more than 7.8 million shares at an average price of $24.44 for a total of approximately 191 million. And as you've seen in last night's press release, the TSX has approved West Homes application to renew our share buyback program. Over the next 12 months, we have the optionality to buy back up to approximately 7.2 million shares or about 5% of our public float. We are currently going through our 2027 budget process.

13:40 Once we have defined the businesses operating capital requirements for next year, We will determine the appropriate allocation available to potentially continue the share buyback program. Before I hand it over to Tyler, a few items on our upcoming reporting. We are scheduled to release our year-end 2026 results a couple of weeks earlier this year, on February 24th. Concurrent with earnings, we will also be issuing our guidance for 2027. We also expect to release our 2026 mineral reserve and mineral resorts update in the first half of next year. With that, I'll now turn it over to Tyler to walk through our operational performance.

14:20 Thank you, Phil, and good morning, everyone. Let me start with safety. Across both sites, our total recordable injury frequency rate was 1.01 in Q3, down from 1.43 a year ago. High potential incidents, the leading indicator we watch most closely, were 0.67 in Q3 and 0.79 year to date, also improving year over year. We're encouraged by the progress and continue to emphasize it every day. Our expectation is simple and non-negotiable. Everyone goes home safely at the end of every shift. Moving to slide 10. We produced nearly 41,300 ounces in Q3 and approximately 130,000 ounces and many more. Operational performance in the quarter reflects the planned transition to district-scale operations as we position West Dome as a stronger, longer-life mining company.

15:21 Q3 was below our expectations. Part of that was planned for Skeel's ramp-up and Eagles River's transition to filling the mill. Part was not. At Keenan Deep, we did not execute as well as we needed to, and I will discuss the specific drivers in detail. We are on track to finish in the lower half of our consolidated 2026 production guidance range. Turning to slide 11. Delivering on Eagle River's low cost, scalable potential is critical and we're making good progress. Eagle River produced nearly 25,000 ounces in Q3, up from approximately 22,000 ounces in Q2. The grade averaged 10.1 grams per ton compared to 9.7 in Q2 and grades continue to reconcile well. July grades came in as anticipated at over 12 grams a ton. However, one high grade sill was delayed and one stope came with lower than expected grades. Our mining sequence and the updated reserve plan include lower grade stopes and development ore alongside high grade production.

16:33 Throughput increased, but it did not fully offset the lower average grade. The stopes expected to deliver a significant share of Q4 ounces are already drilled off. The sequence is now in the high grade core and our geology review supports the plan. broader story is the evolution of the mine Eagle River moving to a higher tonnage longer life model with more tons from the recently updated mineral reserve ore milled has increased every quarter this year and is up 24 year to date that growth is central to filling the mill and building a larger more valuable operation we process nearly 80 000 tons in Q3 a quarterly record Up from 10% in Q2, up 12% from a year ago.

17:26 That's an average of almost 870 tons per day, with the rate continuing to build in Q4. That performance gives us confidence in reaching the fill-the-mill targets set out in our latest technical report. Another benefit of increasing scale is that more tons we move, the less any single stope shapes the result. In Q4, we expect both grade and tons to increase, and that combination is what will drive a stronger quarter at Eagle River. Grade reconciliation supports confidence in the ore body. Preparation and operating execution determine whether we will deliver those ounces on schedule. As exploration continues to succeed, we have opportunities to add high-grade material to boast a long-term production profile of the mine.

18:21 Moving to slide 12. In Q3, cost per ton processed was $511, down nearly 20% from $631 in Q2. That is an increase from one year ago of $495 reflecting inflationary factors impacting the industry offset by fixed cost leverage. As we continue to scale the mine, we expect unit cost to improve. Capital spending totaled $21 million in Q3 and $48 million year to date against a full year plan of $105 million. We expect spending to increase in Q4 when most machinery and equipment deliveries are scheduled. However, capital allocated to the camp replacement has moved into early next year because of unit availabilities.

19:11 The tailing storage facility lift is progressing well and is on track for completion shortly. Turning now to Kena on slide 13. Kena produced over 16,000 ounces in Q3, up 2% year over year, but below a strong Q2. Seasonal workforce availability impacted operations. The result was lower equipment and an operator availability impacting stoke development and a planned shutdown that extended into unplanned downtime. We are addressing this in two ways. First, strengthening our workforce planning. Staffing has already improved now that the summer season is behind us. Second, is improving our contractor agreements to increase accountability, continuity, and cost control. These issues slowed the development at Kena Deep, leaving fewer stopes ready to mine and shifting two higher grade stopes into Q4.

20:12 Grade averaged 8.2 grams per tonne compared to 11.1 in the last quarter and 12.2 in Q3 2025. As expected, the mill feed blend drove most of the quarter over quarter change. Praskeel contributed approximately 25% of the tons compared to 10 to 15% in recent quarters. That reflected two factors, a higher share of a lower grade ore as Praskeel ramps up towards steady state and the shift of two higher grade Keenedeep stopes into Q4. Importantly, grade is reconciling positively at both Keenedeep and Praskeel. The deferred Keenedeep stopes are in the Q4 plan Improve productivity as improved stope inventory for steel continues to ramp up and is moving into a higher grade sequence. The practical benefit is more places ready to mine in the sequence. If one area is delayed, another developed source of ore keeps the mill supplied.

21:16 Mill throughput rose 27% year over year to approximately 64,000 tons or 693 tons per day. Filling the mill is central to Kena's strategies and we expect tonnage to continue increasing. Kena Deep delivered its highest monthly tonnage of the year in September at more than 800 tons per operating day, proving the mine has the capability to operate at rates that support our continued ramp up through Q4. Perskeel ramped up steadily through Q3 to more than 250 tons per day. We'll continue to ramp up through Q4 and commercial production is now expected in Q1, 2027.

22:01 With Perskeel operating and level 142 advancing, the multi-horizon model is beginning to pride greater operational flexibility and optionality. We expect a solid Q4 at Keenan with a ramp-up of per-scale stope ore and the increased stope availability at Keenan Deep. Turning to slide 14. Unit costs were $492 per ton processed in Q3 compared with $526 in Q2 and $506 in Q3. Higher throughput drove the quarterly sequential improvement Partly offset by maintenance costs related to the extended shutdown. As Proskio reaches commercial production and Keenan Deep fully ramps up, we'll spread the fixed cost base over significantly more tons.

22:52 That provides a clear path to lower unit costs shown by the unit cost reductions at the site year to date. At Kena, we're applying the same cost discipline that has driven improvement at Eagle River. The work is earlier in the cycle, so our largest gains are still ahead. Kena's capital spending was $29 million in Q3 and $84 million year-to-date, including $58 million of growth capital. We expect Kena to finish near the upper end of its capital guidance as we invest in its future operating potential. Key Q4 spending includes continued per-scale development, Kena Deep ramp extension to level 142, and ventilation fan upgrades.

23:41 The ventilation expansion is progressing well and is expected to be completed early next year. It will double our underground airflow, support higher mining rates, and improve exploration flexibility. To summarize, our Q4 forecast has us on track to deliver our consolidated full year guidance range. I'll be below the midpoint. Our focus across both operations is on labor productivity, supply chain optimization, optimization, maintenance unit cost improvements. At both mines, we're building a longer life Higher Throughput Operations. Quarterly results may vary as these plans advance, but the underlying trends continue to improve.

24:29 And now I'll hand over the call to Jono for our exploration update.

24:35 Thank you, Tyler. Good morning, everyone. Exploration is how we grow West Dome beyond today's mine plant. We have 1.4 million ounces of reserves and an eight year mine plan at both operations. So our job is to extend mine life and add to our gold infantry. Our recent news from Keenah Deep, Keenah East and Eagle River all point the same way. There is more gold in the ground than our current models show. And with new drill platforms in place at both mines, we are well positioned to keep building on that momentum. Let me take you through the highlights. Going to slide 16, at Eagle River, we have four goals. Replace the high-grade ounces we mine each year. Grow our reserves and resources.

25:22 Make new discoveries in our land package and develop a larger, lower-grade source for future production. In 2025, we drilled areas outside our mine plan and grew our reserves and resources to the highest levels in the mine's history. This year, we are targeting the continuation of our high-grade zones laterally and deeper. This week's results show that this is working. Longer term, our hub-and-spoke strategy is to build a large bulk tonnage operation centred around the Michien Magnicon area. I'll come back to that shortly. Moving to slide 17, our high-grade underground program. Three things stand out. First, we see high-grade growth potential along the length of the deposit and at depth. Second, we drilled exceptionally high-grade intercepts in an area that remains under drill. And third, all of these sit close to existing infrastructure.

26:20 In the 800 zone, the Western Extension returned high grades over increased thickness, such as 8.3 grams per tonne over 10.6 metres, including 143 grams per tonne over 0.5 metres. That is among the thickest high-grade intersections we have seen at Eagle River outside the 300 zone, which is our flagship working zone. In the 500 zone, a single hole in the previously under-drilled area returned exceptionally high grades, validating the continuity of high-grade shoots. More drilling is planned to turn this into resource. In the 700 zone, step-out holes intersected high-grade gold across an area roughly 200 metres by 100 metres outside our current resource model. That is potential new ounces.

27:13 Growth, right next to our existing workings. Between the 800 and six central zones, we confirmed a potential new high-grade vein less than 10 metres from an existing ramp. Follow-up drilling is planned for Q1. Why does all of this matter? Most of these mineralised zones are shallower than our deepest workings and close to existing infrastructure. That could mean less development, Shorter Halls and more flexibility in what we mine and when. It is growth from an operating mine without the cost and complexity of a brand new project. Four underground drills will keep running through the year end and into 2027 and these results will feed into our reserve and resource update in Q2 next year.

28:05 Turning to slide 18, Michin MagnaCon anchor our plan for shallow bulk scale Drilling continues to show consistent mineralisation and before year end we will release an update comparing early growth potential against our current resource estimates and pit designs. We also expect results from newer targets east of MagnaCon called MagnaCon East and Feather River plus other surface drilling. at Dorset and Cameron Lake, geometrological drilling is complete with test work, including recovery tests beginning in Q4. Turning now to Kina, our objectives here mirror Eagle River. Replace at grade at new ounces per vertical metre and advance larger bulk tonnage opportunities.

28:57 In Q3, we made real progress on all three. At Kina Deep, drilling from two new exploration developments on levels 134 and 109 led to two new discoveries. If follow-up drilling confirms continuity, especially at shallower depths, they could add ounces close to existing infrastructure. At Kina East, our Shorkey 10 results show what a fresh look at historic drilling data can uncover. Let's discuss Keener Deep on slide 20, where the standout story this year is the Norbanite football discovery, an area previously interpreted as barren football beyond the Norbanite Fault. The Norbanite Fault, a structural zone running alongside the Keener Deep's ore body for more than 800 vertical metres, previously limited our ability to drill and test beyond this structure. The new drilling platforms provide access to drill past that constraint.

29:55 One hole from our level 134 development returns 7.8 grams per tonne over 57.2 metres. That is our third broad high-grade hit in this zone. And together they trace more than 150 vertical metres of mineralisation, which remains open in all directions. The basaltic host rock also offers strong ground competency, which supports stable mining. that could allow us to design significantly larger stopes. Drilling from level 109 intersected the VC zone, which could be connected to the main Keenan deeps mineralization and a new parallel vein. Both of these remain open and more drilling is underway.

30:43 Why does this matter? Keenan Deeps appears to host multiple high-grade structures beyond what is in our resource model. If we confirm they are continuous, they could add more ounces per vertical metre, create new mining areas and reshape how we develop this mine. Importantly, we have only had access from these new platforms for the past six months. And in that time, we have already made these two discoveries. My message to the team has been to turn ideas into gold bars. And we are building momentum on this. We are drilling from platforms that finally give us the access we are missing. Six months in, we are just getting started. For the rest of the year, we are focused on testing the size and continuity of these zones, especially near existing infrastructure, which results feeding our next resource update.

31:38 Slide 21 shows Kena East, a group of targets east of the mine, including Shorkey 10, the historic Shorkey Mine, Zone 134 in Dubuisson. In September, we reported Shorkey 10 with one hole returning 3.1 grams per tonne over 106.5 metres, including a higher grade interval of 20.4 grams per tonne over 10.8 metres with visible gold. The mineralisation remains open and about 500 metres of ground toward the shoreline is still untested. A robust winter drill program was planned with three drill rigs to evaluate the continuity. What does this mean? Kena East is a growth horizon distinct from our principal mining areas within our existing operating platform.

32:27 It is early days, but repeated broad mineralisation, multiple higher grade structures and a large prospective host have the hallmarks of a system with real scale. To wrap things up, expect more news releases before near end, including more Kena Deep's results, Mishi Surface Drilling, and first results from MagnaCon East and Feather River. For Mishi, the release will aim to showcase the scale and upside potential of this growing deposit. At Kena East, deep drilling at Shore Key 10 continues, and we are preparing the winter program to size up the system. In Q4, we begin AI-based targeting at Kena, using this year's drilling results to guide where we go next.

33:15 The Eagle River results give us confidence in this approach. At Eagle River, we plan to drill more than 145,000 metres in 2026, focused on replacing high-grade ounces and exploring near the mine. Together, the work and drill programs will give us a much clearer picture of our large-scale potential at Eagle River and the continuity of our new high-grade discoveries at Kena, all ahead of our next resource updates. Operator, you may now open the line for questions. We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand.

34:01 To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Wayne Lam with TD Securities. Your line is open. Please go ahead.

34:34 Hey, thanks. Morning, guys. Maybe, Akina, just on the per-scale tonnage ramp up into next year, Is the planned contribution still targeting a run rate of about 400 tons per day? And can you provide a bit more detail on the positive reconciliation you're seeing there to date? And then with the two higher grade scopes from Keenan Deep and Q4, should we be modeling significantly higher grades in the quarter, even with the lower grade tons contribution from Braskeel?

35:10 Hi Wayne, thanks for the questions. I'll just quickly summarise at a high level. The ramp up of Preskill in the quarter four, quarter three was really good and I think you'll see Tyler will give the indication of next time it continues to ramp up to that point. I think just importantly for Kina Deep, what's happened here is a removal moving on the two steps into the next quarter which essentially cannot be caught up properly. So essentially the grades are much the same, I would say, more or less in the quarter strike time.

35:47 The ratio may change a bit, Wayne, where we'll get a bit more, but you're not going to see, you'll see a bit of an improvement in overall grade, but you're going to see more tons coming through from both areas as well.

36:00 Maybe just give an indication for skills.

36:03 Go Forward Basis, we'll continue to ramp up, you know, we are 250,000, sorry, 250 tons per day. And we'll ramp that up in Q3. And what we're looking at for, you know, 2027 will be, you know, annually, probably 110 to 130,000 tons out of there, which will get you anywhere that 300 to 400 tons per day. So. It's moving as predicted and as anticipated.

36:34 And the reconciliation, I'll just maybe comment on that as well. Do you want to just give a quick comment there?

36:41 I think just looking at both Keenan Deep and PI, I think year to date, we're seeing reconciliations come in where we want or as expected based on our model. So there's no material issues or drama there.

37:00 Okay, great. Thanks. And then maybe at Eagle River, just looking into the months ahead, can you give us a bit more detail on the change in mining sequence that you've talked about in terms of bringing more low-grade and incremental ore at a lower cutoff? And is that thinking already baked into the updated mine plan in terms of the process grades at 8.8 next year? or can you give us an idea of how mining is shifting in real time versus that plan?

37:36 That's a great question, Wayne, and I think we need to clarify this properly in that case. If you look at what we're doing in terms of the transitioning of Eagle River upwards, we've put the data out and we're delivering to that and we'll keep pushing to that particular plan and we do not go out of sequence. I think what's important to notice is that what you're seeing is we're in the sequence of higher grade now in this quarter. I think that's It's critical to say that we're really trying to maintain good execution on our operations and maintain sequence. So it's just a matter of where you are on the mine at the moment. And right now, what you probably see is higher grade from Eagle.

38:22 The overall grade for next year will definitely not be at 8.8. It's going to be a lot higher than that. So we are targeting the double-digit grade, as we told you before. This is the combination that you're getting in terms of average grade, in terms of technical reports, of function of the global model addition, not a function of sequencing for the plan for this year. So it's really important that there's a distinction between the two. Your technical reports look at 2P reserves. They do not look at the plan that we have in front of us. And obviously the additional drilling we've done in the year to confirm the upgrade, as well as the mine sequencing work we do to optimize the plan. We are transitioning Eagle River up to a much more higher tonnage mine and as we're doing that we're going to make sure that these plans you know correlate correctly as we do you know along the timeline.

39:19 Okay okay great thanks for that detail and then maybe just last one it looks like maybe there's a bit of a pause on the buyback program so just wondering How are you looking at the pace of execution now, and if there's any appetite to increase the dividend given the growing balance sheet?

39:33 I'm going to hand over to Phil, yeah?

39:36 Yeah, thanks, Anthea. Hi, Wayne. So, I mean, the buyback program at this point is on pause. We're preparing our budget for 2027. And, you know, once we get a sense of how that's and what other priorities may emerge. The buyback program gives us that flexibility. In terms of the dividend at this point, again, our approach to capital allocation is going to be dependent on our budget and the same priorities.

40:22 If there's an opportunity to increase the dividend, we definitely will look at it.

40:30 Okay, great. Thanks for taking my questions. Thanks. Your next question comes from the line of Jeremy Hoy with Canaccord Genuity. Your line is open. Please go ahead.

40:45 Good morning, Anthea and team. Thanks for taking my questions. I want to look ahead a little bit. First off, something that's been very topical across the sector, Boston in 2027. Just wondering if you guys can give us any color on what to expect in 2027 and various inflationary pressures, et cetera, as we look to tweak estimates for the following year.

41:19 Hi Jeremy, it's Phil here. Yeah, definitely there's inflationary pressures. I think for West Dome, our biggest impact on the inflationary pressure side is with manpower. And we're actively looking at the impact for 2027 in our budget process. Thank you for joining us. at opportunities to improve efficiencies and one of the areas is supply chain.

42:10 We're looking at improved pricing with suppliers, getting better control over key contracts and so forth. So there's a number of initiatives underway and the hope is that Some of our potential savings will help to offset some of the inflationary pressures.

42:39 Okay, great. Thanks. I appreciate the call. The other question I have is about the upcoming reserve and resource update. I think you guys have done a great job of highlighting the exploration potential you have at both sites. I'm wondering you know ahead of this resource reserve update can you help us um write a little guidance on how we should think about it is this going to be an incremental increase or or something more substantial and if this one is incremental you know when can we expect um you know potentially more substantial increases um you know following your pretty aggressive exploration program that you guys have have ongoing

43:29 It's a great question and we're in phase in year two of the exploration program at the moment. So next year, the resource reserve should reflect some of those outcomes. I think what's important is when you look at what John has been working on, I'm talking on behalf of him and he can comment himself. but he's been working on understanding the ore body, your step-by-step drilling, growing resources and obviously adding your higher grade reserves to the plan as well. So there's a whole combination of drilling that's composing that particular story. I think we feel We're really excited about what we're seeing from a geological potential perspective and the work we're doing is really leading the program from a more strategic perspective and we're building it out in the right kind of way.

44:15 So hopefully some of that reflects nicely in the resource. We're hoping to see that. Thank you very much. is both short-term to maintain execution, deliver well in execution, and on long-term to build out what we know this company can become. So these two run hand-in-hand and parallel. You know, the link in between the two and how we build the one to the other is the transitioning that this team is going to have to be darn good at, and we're going to become extremely good at it over the while. But let me tell you, I think that exploration program over the next three to five years is going to be pretty darn interesting.

45:10 Okay, great. Well, thanks, Anthea. I appreciate that color. That is helpful. I'll step back in the queue. Your next question comes from the line of Harrison Reynolds with RBC Capital Markets. Your line is open. Please go ahead.

45:27 Good morning, West Dome team, and thanks for taking my questions. A bit of a follow-up to the cost questions so far. Looking at the three-year outlook that came with the technical reports, could you talk about your confidence in achieving that outlook as planned? With consideration to the ongoing cost pressures and the focus on more bulk tonnage mining, do you still think the range of $1,600 to $1,750 an ounce ASIC is a reasonable target on a go-forward basis?

46:01 Hi, Harrison. It's Phil here. I think that's a starting point, but the world's evolving. There's, for example, the FX rate. We're watching to see how that's going to impact costs going forward. Inflation It seems to be ramping up higher than expected, maybe even higher than what was in the three-year outlook. As I mentioned earlier, at the same time, we are looking at opportunities to offset and reduce costs as well.

46:49 Our guidance this year was a midpoint of about $16.50 per ounce sold. If you If you account for let's say a 5% inflation rate going into next year, you're already looking at 1730 to 1750. If inflation is higher than that, that will drive it up a little bit higher. But we are actively looking to try and manage that number as best we can with some of the initiatives that we have underway.

47:24 Got it. Thank you. I appreciate the detail there. I also wanted to ask on some of these growth options at Kena, more exploration on Kena East and the bulk tonnage mineralization there. Can you give us your latest thinking on how this fits into the Kena Mine Plan, whether it's a third source of mill feed beyond Kena Deep and Presqu'ile? How do you imagine this fitting into the Kena District?

47:52 Harrison, great question. And the nice part is there's lots of optionality, which makes me quite excited. So we've obviously worked on this in numerous metal processing routes. We have a mine plan right now on Dubuisson. So we could mine on a conventional basis through the current exploration or that level 33 drift that you're aware of immediately at a certain tonnage level. We're choosing not to, but should we choose to see an escalation or growth, we could use that as an option to start. We could also use to look to increase the ability within that drift and from a more conventional mining, sorry, more mechanised mining perspective, so that's another option. There's multiple options available to Westone right now to actually process this and I think what we're going to, we have various routes that the team has worked on in terms of how quickly we can get into the mill, how quickly we want to get into the mill. I think the big question that we keep asking ourselves is on honouring the ore body correctly and when the right time is to do this.

48:59 and that will obviously determine as quickly as we get it into the mill but I think it's really important to note that Westo could mine that immediately and he's choosing not to but we are for good reason because we really believe that the bulk scale potential is quite significant which then would result in a much more significant opportunity from a value perspective for shareholders.

49:24 Got it. And if I could just follow up on one more district-related question. Could you give us a sense of the timeline, switching gears to Eagle River District, can you give us a sense of the timeline of when we might get a sense of what Michi Magna Con could mean to the mine plan?

49:42 So next year we're planning on putting a conceptual study out on that and that should hopefully give you a sense of what that looks like. But even this year, I think Joanna is intending to put something out before the end of the year on what Mishi's first bit has shown. So I think you should get a sense of how quickly you can grow this ore body with the work he's done. and then you should think about this from how many other potential opportunities are in the region and how his work will translate into broader values. So when you look at the work he puts out, think about it as a growth rate and how quickly the growth rate was achieved and then apply that to his other ore bodies and then you'll get a sense of scale. So next year the conceptual study will give you a better, a more firm sense. This year numbers will tell you what it can indicate towards.

50:33 Got it. Great. Thanks for taking my questions and looking forward to the ongoing progress. Thanks so much. Your next question comes from the line of Simon Wildsmith with Desjardins. Your line is open. Please go ahead.

50:52 Thanks, team. A few questions for me. Maybe just to start at Eagle, we saw one still coming below expected grade. Just wondering, was this a reconciliation sort of issue, shortfall against the Gold Model or dilution? Just trying to maybe get a feel for how the Gold Model has been reconciling so far this year at Eagle.

51:12 Yeah, so, I mean, everything that I think both Joanna and Tyler said that the reconciliation at Eagle remains really good. So, so far things are looking very good. I would argue that the grades are the grades. I don't think... Tyler, if I'm not mistaken, your grades look pretty much intact except for the one change that you described a little bit earlier.

51:37 Honestly, it was a bit of an anomaly. We mined The two stopes below and the stope above which we're mining right now are reconciling as we expected. This one was a bit of a anomaly in the quarter, but everything else is tracking as we've expected and year to date we're tracking as expected, particularly in the 300. We've gone through all of the stopes and the sequence in Q4 and confident with what we have in there in the model. and what we're seeing so far quarter to date is things are tracking well.

52:14 I mean, the transitioning towards this larger scale mining operation is working well. It's a transition though, so as you're going through it, you're going to, you know, you'll see some of these things, but it's certainly weaving in the right direction.

52:31 Okay. Okay, cool. No, that helps me. Thanks. Maybe this last question. I wonder if I can ask about, can you just remind us, some of these things that are upside, you know, Michi, I think we saw in the broader key, can you remind us what is already in the plan and is there any way you can give us a target for when we could expect an update for when things could enter plan or what you're working on currently? It sounds like, Michi, you were getting an update next year, but maybe more at Kena then.

52:59 Okay, so what you would have seen in a plan before for Kina would have been Kina Deeps, Preskill, Northwest, and a little bit of Dubuisson from a selective high-grade mining perspective. It's not a lot. Kevin, what could it be? About 40,000, 50,000 ounces in reserve in the old plan? Yeah, exactly. So that would have obviously changed. So what you would have seen, and that's going to change obviously with time. So there's no shawky in that. There's none of those other zones, I don't believe, correct, Kevin, in the old plan. No, that's it. In the Eagle side, there's no Michi, there's no Magnet Con, there's none of that. It's only from Eagle River itself and it's only from the traditional zones that you know. So all the growth that you've seen would have been, is outside of that.

53:52 Okay.

53:53 Okay. Yeah. And then do you guys have a sort of, I know you guys haven't put out there, you know, for maybe Kina and Kina East, like, it sounds like it would do with Saunders potential there, but you guys have timelines for that stuff or is sort of TBD at this point?

54:08 We have very aggressive timelines internally, as you can probably imagine. So I think we're obviously going to try and figure out how we can start showcasing what this looks like in the right kind of way. And John, I'm sure, will figure out how to try and explain it a bit better. But I'm not sure it will be a perfect science in a way that A lot of people want to see it from a perfect resource reserve statement and probably be showing more the scale. So, John, I mean, I think next year your drilling work should translate, correct, into something that gives a sense of what this thing could be.

54:45 Correct, Anthea, correct. So we've reviewed some of the historic data and from an interpretation of that information, we've drilled in a different orientation and that's brought information Very positive results. So we've got now three drill rigs in that area and the idea is to drill out over the winter size scale to see how big this system could be with the aim then, and these are step out holes as you can imagine, then it would be a case of infilling it next year. to get it to a level where we could call it a resource. And once we have an idea of that resource and size, then whether it's the end of next year or early 2029, it would not be from a shortage of drill rigs and possibilities. It's on the land.

55:36 We can be very aggressive. It's just the timing of when we could do this work.

55:41 And I mean, you can imagine that parallel to this, we would be running scenarios and mine planning work through Kevin's team. All of this is happening as we speak. It's not, it's just a matter of getting information at the accuracy level that we can actually report it correctly.

55:56 Correct. Okay. Okay, cool. No, that helps me. I think you guys are, you're coming out, so sounds good. Yeah, thanks. Thank you. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.