Aug 14, 2026 earnings call — Shaft upgrades, production ramp, obligation settlements
Consolidated revenue increased 71% year-over-year to $46.3 million in Q2.
Revenue $0.0B (est $0.0B) · EPS $-0.02 (est $0.02)
Key quotes
"The upgrades have increased the hoisting throughput from roughly around 42 tonnes per hour."
"As shown on the slide, the transactions removed more than $76 million of future variable metal price-linked obligations and more than $28 million of annual debt servicing obligations."
"We had an intersection of 14 meters grading 600 grams per tonne."
Analyst Q&A 4
Galena production and sales timing
Q (Dalton Baretto · Canaccord): Analyst asked why H1 was low and how confident management is about a big H2. He also asked if the ~9% production vs sales lag will be made up in H2.
A: Management said Q2 was a planned investment quarter for shaft work to sustain 85 tonnes per hour and that they are now regularly moving 1,000, 1200 tonnes a day. They noted they have blasted their 13th long-hole stope, treat guidance as a company number, and said the company is comfortable achieving guidance with about 40% in H1 and 60% in H2. On the production-versus-sold lag, management said those ounces are already being processed in the first month of Q3 and it is just timing to move production from mill to smelter.
"So when I look at Q2, as a company, we're sitting right around 40%." — Paul Huet (CEO·CHAIR)
What is happening at Galena and Crescent
Q (Justin Chan · SCP Resource Finance): Analyst asked for a ground-level update at Galena and Crescent, including how shaft capacity, waste removal, stoping and development are progressing. He also asked if the internal study at Relief Canyon is still planned and about capital timing across Q3 and Q4.
A: Management said the shaft work is done and they are catching up on waste development at both Galena and Crescent while installing a paste fill plant to speed stope cycling. They confirmed the Relief Canyon study is ongoing and will be released in a month they will specify during the site visit, and said capital plans are largely on track with maybe about $1 million shifted and slightly more spending toward Q4 for some big projects.
"Once that paste fill plant is done, commissioned, we'll be filling stopes in around, call it, 36 hours versus 10 days." — Paul Huet (CEO·CHAIR)
Long-hole shift, Galena grades, Cosala results
Q (Jamie Spratt · Haywood): Analyst asked how the mine mix will move from cut-and-fill to long-hole stoping in H2 and into 2027, and how Galena grades will trend after a Q2 fire. He also asked what is driving outperformance at Cosala and if it is sustainable.
A: Management said long-hole requires waste development, the paste fill plant, and new equipment, and they expect to reach about 30% to 40% long haul by the end of 2026 with targets higher in subsequent years. They described the Q2 fire as minor, said the displaced high-grade area is settled and those ounces will flow into H2 so guidance is achievable, and said Cosala's strong performance is driven by being in the EC120 zone, better recoveries (about 4% to 10% improvement), and local operational execution, which they believe is sustainable.
"We have always said, look, we could end this year at a range, 30% to 40% long haul by the end of 2026." — Paul Huet (CEO·CHAIR)
Progress and performance of long-hole stopes
Q (Case Bongirne · H.C. Wainwright): Analyst asked for an update on the transition to long-hole stoping and how those stopes are performing so far.
A: Management said they have completed their 13th long-hole stope and are mining narrow stopes about 1.2 to 1.3 meters wide, achieving similar reconciliation to the prior method but moving much faster. They said long-haul can generate around 200 tonnes per day (sometimes per shift) versus about 50 tonnes per blast previously, and that the paste fill plant (expected to be used in 2027) will further improve cycling.
"And when you come to the mine and you see some of the results, we're mining some of these stopes that are about 1.2 to 1.3 meters wide." — Paul Huet (CEO·CHAIR)