G Mining Ventures

Okay, so I'll just give a very quick introduction of G Mining, and then we'll jump right into the questions. So G Mining holds three gold assets across Brazil and Guyana. Tocantinzinho is currently expected to produce around 160,000 to 190,000 ounces in 2026. And that's expected to rise to 200,000 to 235,000 ounces in 2027. Oko project is under construction, and first gold is targeted for H2 2027. And Gurupi project in Brazil is the advanced stage exploration project.

So just starting off with some questions that we prepared for you. Now you’ve got a good base of production right now with Tocantinzinho in Brazil, looking to build Oko in Guyana. Oko is expected to drive production, I believe, towards that 500,000 ounces when completed in H2. What’s the critical path, and what are the keys to finishing on schedule and on budget?

Yeah. Right now, we’re basically in the peak of construction. We have about 2,000 people working on site, and basically, we’re getting close to the 12-month mark to achieving first gold. And to get there, really the critical path is the grinding circuit, which we expect to receive our mills in country in the coming days. And the intent is to do the installation to be able to start commissioning in August and targeting first gold by the end of September. So that’s really the remaining critical path that we have. We’ve made great progress on all the infrastructure areas. The power plant essentially has all the gen sets in the powerhouse now. So we’re progressing with the construction of the power plant to energize the site. So things are tracking nicely, and a lot of the project is de-risked as well from a cost point of view with about 65% of the project committed at this point.

And based on the construction going on right now, are you still exploring in the area? Are you still looking to grow resources and reserves? Can you give a little bit color on that?

Yeah. Basically, this year we committed to a strong exploration program across our three assets. And Oko West has been a project that’s been delivering great results from the exploration point of view. And now with the acquisition of G2, the focus has shifted to completing the infill drilling on the Ghanie and Oko main deposits. So the intent is to complete about 55,000 meters of infill drilling before the end of this year so that we can roll that into an updated feasibility study and expanded project as part of that feasibility exercise. So yeah, we have ten drills turning at the moment. And once we complete that infill program, there’s multiple targets along several mineralized trends that we wanna follow up on to keep growing the resource.

So this is Oko Ghanie and Oko West that you’re talking about and doing a combined project on that?

Exactly. So we know that, as you know, that was the extension of the deposit. It’s one deposit, so it’s basically a five-kilometer strike length of continuous mineralization with multiple open pits at surface that essentially connect up, and then multiple undergrounds, one being on block four, Oko West block four, and one being Ghanie, which is gonna be another solid underground contributor to the overall project. So our intent is we have this common infrastructure that we’ll be able to use for an expanded project. And that’s really what results in these great synergies that we have by making this one larger project. So the target is adding two to 2.5 million ton per annum of processing capacity, allowing us to get up into the 500,000 ounce per year production mark. And we really view that as creating really a tier one asset when you think of that production level, low operating costs and actually a very long mine life really in front of us.

And you said there’s an expansion potential over here in terms of processing capacity. Have you started talking about what kind of CapEx or what that would mean in terms of when you would start spending that as well? Because I believe you’re doing a study right now, and then based on the study, you’re gonna go forward—

Yeah.

—with the CapEx.

So we’re not putting any firm numbers out until we advance a little further in the study, but the concept is we’re adding a ball mill, adding additional leaching capacity, additional power plant units to energize the larger site. So yeah, it’s basically pretty modest initial CapEx to fund that expansion. And the intent is really to keep the existing construction team on site. And then once we commission the, call it phase one of our project, start generating cash, that construction team will just continue for another year executing on the expansion. So we don’t have to remobilize the team, and the permitting process as well is very straightforward with the government given that they’re seeing this as one and the same project, obviously with some addendum ESIA studies for the additional footprint impact. But yeah, that makes for a much larger and more capital-efficient project.

Got it.

So we intend to generate the results of that updated feasibility study mid next year, combined with the resource conversion that we’re doing right now.

Got it. And are there similar kind of expansion potential at Tocantinzinho as well that you’re kind of working on in the background, or more exploration upside there and expansion to increase production profile?

Yeah. So we essentially two weeks ago produced an exploration update on TZ and Gurupi. And so what we’ve been finding at TZ is really some of the extensions at depth of the ore body. So we’ve had good success now identifying mineralization at least another 150 meters below the existing final pit limits. So we see that as being a potential for another pushback and extension to mine life more than an expansion itself. We also have a very large land package, a little more challenging terrain in terms of exploring. But essentially we’re continuing to look for additional deposits on the land package, and should we be successful, and our expectations are over time we will be, that would be the catalyst for potential expansions of the processing capacity at that point.

Got it. And then just moving on to Gurupi, you mentioned Gurupi as well. Looks like that’s the next project in the pipeline. Do you think that the resource grows, and really what’s the vision for the operation ahead of this upcoming technical study, and kind of timeline?

Yeah. So obviously the Oko project is gonna be a fantastic project. The focus is right there at the moment. What we’re trying to do is build the next leg of growth post Oko. So when you think of the 500,000 ounce potential of the Oko project combined with TZ, we’re getting close to about 700,000 ounces. And so looking to expand with Gurupi, and we’re targeting a production level that would be higher than TZ, so in the 200,000 ounce range, and to get us to close to 900,000, pushing on to a million ounces of production.

So what we’re doing right now is a lot of exploration drilling to essentially find extensions to the known mineralization of the three deposits that we have. And also we’ve been successful now in identifying a new deposit area on the Chiga Tudu trend, which we highlighted with some of the exploration results. And we’re finding mineralization over a five-kilometer strike length that we now have drill tested. So the intent right now with this PEA is to show some resource expansion to help us fine-tune what we think the ultimate potential of what we wanna build is. And so that is part of the PEA exercise that we’re looking to complete for the end of the year this year. But basically, Gurupi is what we call advanced exploration, but there’s been a lot of historical work, so we’re not starting from scratch in terms of a lot of the technical work that we’re doing on the processing side. But we are looking to make a larger project than what was contemplated in the past.

Yeah. Good stuff. And I wanted to ask you a question on M&A, but before we get to M&A, I wanted to ask you in terms of the inflation that we’ve seen because of what’s happening in Middle East, any sort of supply constraints as well, is that impacting any of your operations and how are you mitigating those impacts?

We haven’t seen any main challenges with that. Fuel prices are a bit higher obviously. We haven’t had any shortage of supply. But a lot of the procurement that we’ve done for Oko West was kind of prior to the conflicts in the Middle East. So a lot of that pricing has been locked in prior to what we’re seeing right now. So it’s been pretty modest from what we’ve seen.

Good stuff. And then just again moving on to M&A, is M&A on the table right now? Given the increased scale of the combined company now, are there any opportunities that you’re looking at right now, or you’re looking inwards in terms of all the projects that you’re building right now?

Yeah. Well, we closed on the Jitu transaction at the end of July, so I think we’ve been obviously very active on the M&A side.

By the way, congratulations on that.

Yeah. So we don’t feel like we need to be out on the lookout at this point. We have a lot on our plate to create value for shareholders. And I think if we think of M&A, it has to be something that’s more attractive than what we think Gurupi will be. And in terms of timeline as well, it would have to be something that would be easily permitted and constructible such that it can be the third leg of growth to our story. And what we feel right now is essentially that Gurupi is a project that doesn’t attract a lot of value currently in our share price. And we do see the PEA as being a catalyst to expose what this project can be and what its potential value should be as well.

So you’ve got a good pipeline already kind of built up, but in terms of regional exploration that you might be doing, is there any other kind of deposits or projects in the back pocket that you can start talking about?

Yeah, no. Look, I think one thing that’s gonna be a major focus post the G2 transaction is really the exploration of that land package, which is now basically a district-scale land package that we consider to be one of the most attractive in the world. And also it’s gonna be a major, major mining camp. And a lot of that we’re looking to explore over the coming years. We have done some small land deals, what we call basically just picking up small claims that are missing in the land package surrounding the Oko West project. That’s the extent of our focus right now when it comes to adding additional ground or M&A at this point. But like it was the case for Gurupi, that was a project that we had looked at two years prior to acquiring that. So obviously on the M&A side, we’re always scanning what are the interesting projects that could fit our portfolio. But we’re no emergency or necessity to add another asset at this point.

Got it. And you touched upon this, but what do you think the market understands the least about G Mining right now?

Yeah, like I said, Gurupi is one. Also I would say exploration upside is not something that’s been factored a lot in the story at this point. So I think that’s one thing that we’re focusing on right now. And in all honesty, we didn’t really spend much on exploration until we got TZ cash flowing and generating cash flow to actually fund our exploration programs. So like this year we’re spending, including the infill drilling with G2, up to $60 million this year. And we’ll likely be maintaining a strong exploration focus in the coming years, especially at these gold prices. And when you’re exploring near operating mines or where you’re building mines, that becomes very value accretive in our view.

Good stuff. One of my last questions: if we reconvene this same session in the next 12 months, what are the three kind of achievements that would make you consider the year a success?

Yeah, obviously next year is gonna be a very catalyst-rich year, obviously with getting the PEA out for Gurupi. We should be at this time next year either producing first gold or very close to producing first gold at Oko West. So that’s a huge de-risking process when you’re building a project of this scale. And in our view, this is gonna be a year where we’re gonna generate a huge inflection point in terms of cash flow generation. And that’ll be a nice re-rating process that we expect to happen in the course of the next year. So that’ll be clearly the objective over the next 12 months for us.

Got it. And maybe I’ll ask one more question as well. You mentioned that you’re about to hit that free cash flow inflection point as well. Is that a kind of moment when you are still focusing on exploration and development? Or is there a thinking of capital allocation as well in terms of dividends or share buybacks? How would you look at that?

Yeah. We did announce an NCIB that we put in place, and that’s something that we’re looking to act on over the coming 12 months, essentially because we see our valuation being attractive based on a P/NAV multiple and the current gold price environment. So that’s kind of the immediate priority in terms of capital allocation. And with the cash flow generation that we expect to be generating with Oko West, we’ll be able to fund, obviously, the expansion of the Oko project. And if we forecast the CapEx for Gurupi, that will also be something that can be financed through cash flow at that point. And so we’ll see when the time comes, but that’s when we’ll be putting in a more formal capital allocation strategy once Oko West is up and cash flowing.

Yeah. Perfect. I think we are coming to the end of the time, but are there any questions in the audience? Oh, I see a question there. If we can get the mic over here, please.

Could you distinguish between G Mining Ventures and G Mining Services? I was a shareholder in Equinox and meticulously read the Greenstone documentation, which was your feasibility study. When you have the mining services, sometimes your clients maybe don’t execute your studies as well as you would. Would you halt G Mining Services so that your clients don’t detract from your wonderful reputation?

Yeah. So G Mining Services is a separate business, privately owned engineering and construction company. Obviously we have a master services agreement with G Mining Services, and to be honest, that’s been a bit of our secret sauce of being able to attract the teams that we need to execute. But when we do that, we transfer them over to G Mining Ventures, so there’s no conflicts of interest. But yeah, when you’re a services provider, you’re often not making all the decisions on behalf of your client, and that’s the way it works. So you do your best to put forth the best project possible and work in line with your clients to deliver the best projects. But I think Equinox was an example with the Greenstone project. There was a successful build. Mickelin O’Bay was another one that G Mining Services worked on with Foran over the last couple years.

Maybe we have time for one quick question. Okay. I think that’s great. Great presentation. Thank you very much. And a great discussion. Thank you very much, Louis-Pierre.

Thanks. Appreciate it. [audience applauding] Great meeting you.