Hi everyone, thanks for joining us. Today we have an update from Santac ruz, who just put out strong Q2 results. With me, I have Arturo Préstamo, CEO, and Andrés Brendel, CFO. And from Adelaide Capital, we have Magda Gardner. The format for today's webinar will be Q&A. We're going to start off with a question submitted in advance, but if you'd like to submit a question during the webinar, please do so in the question box below. And we may be making some forward-looking statements. If you'd like to know more about those, you can find them on the company's website. With that out of the way, over to you, Andrés, and congratulations on yet another strong quarter. Thanks, Alenka. Thanks for having us here. It is our pleasure, and it's been the result of great teamwork. So we're glad to see the results as they are coming along. So thank you for having us. So before we get into the questions, can you first summarize how the second quarter went? Absolutely. Well, we reported a little bit north of $70 million in revenues, with an EBITDA consistent to Q1, $27 million in that range, a net profit of $20 million. So the company is doing really good, financially speaking, and very solid. I mean, from our balance sheet, we have diminished our debt as well. We keep making these Glencore payments as we are meant to be doing, as we agree with Glencore. So today on our treasury, we have north of $65 million. Yeah, things are going along in the right direction. Now, the first question is, net income increased more than 1,300% year over year. What were the key drivers, and how sustainable are these margins going forward? Thank you, Alenka. I believe this is an excellent question, and the answer is highly relevant for all our investors and stakeholders, particularly as it relates to the key drivers and the sustainability of our results. When addressing this, it is important to remember that for any mining company, there are two sets of critical factors here: external factors and internal factors. Within these external factors, of course, there are international metal prices, and in our case, we need to look into silver and zinc. Silver has been following a positive trend. It has been supported by a strong macroeconomic fundamental, given its unique dual role: first, as an industrial metal, and also as a safe-haven asset, so we believe this will continue in the future. Zinc, same thing. We have to remember that zinc now is being considered a critical metal in the U.S., and that the inventory stock of zinc is low right now. That's on the external factor. Another thing to consider is where we are working, the countries we are working, the macroeconomic factors of the countries where we're working. Remember that most of our costs are in the local currencies. So the valuation and all those things are very relevant when we are discussing our our profits. So that's on the external factors. On the internal factors, we need to consider production levels. We need to consider also the quality of the concentrates we sell, the cost optimizations that we do, the sustaining CapEx, and also the growth CapEx. On that front, and that is what management do, we believe that production level will remain stable this year. We might increase a little bit in 2026. We are doing a lot of things on the cost optimization part, and also on the quality of our concentrates. Remember that in Q3 and Q4 of 2024, we did some things in Caballo Blanco operation, which allowed us to get more revenue from that operation, more metal from that operation. So we are working towards that too. Also doing that in a safe manner, sustainable, et cetera. So to summarize and to answer the question directly, the sustainability of our results, given both external factors and internal factors, we are confident our performance will continue at the current levels that we are achieving. That means $110 million EBITDA, operating cash flow for around $80 million. So that's what the investors should be expecting. Revenues are up modestly, but profitability jumped sharply. Was this mainly due to higher silver prices or to cost-saving measures? No, it's a combination. If we look, if we see the numbers Q1 and Q2, and if we look into the gross profit or operating profit, the the numbers have not changed significantly. If we look at the net profit level, yes, there is a big difference, but that has happened basically because of a one-time deferred income tax expense, which is related to the application of IAS 21. This adjustment was introduced in Q1 to properly reflect the market exchange rate in Bolivia. But we are keeping the gross profit, operating profit. We are on the levels of $27 million, $25 million. So in Q1, there was just one-time expense. So basically, there are some price adjustments, cost adjustments, but that's not the main reason here. Perfect. Thank you, so Zimapan reported high cash costs and all-in sustaining costs this quarter, but there wasn't substantial CapEx like in Q1. Can you clarify the drivers behind this and whether costs are expected to normalize? Absolutely, Alenka. Well, actually, we did have significant Capex during Q1. We received pre-underground equipment, which we classified immediately as a purchase for that quarter. So that increased our Capex during Q1. We definitely see normalizing our all-in sustaining and our Capex for the mine. We should start seeing Capex coming down in the next coming quarters. Let's remember that we have been preparing Level 960, and this is a big area, big mineralized area where most of the future of the mine is aiming. So there's a lot of investment as we speak that has been done. But we expect that the most important CapEx investment has already been done in Q1 for sure. We invest more than $5 million just in that quarter. So generally speaking, we should see oil and sustained cash costs coming down at Zimapan. What's the outlook for maintaining the lower all-in sustaining levels on a consolidated basis, and could costs trend back up in the second half of 2025? Our projection is that the all-in sustaining costs should remain in the range of $20-$22 per ounce for the mining operations. For San Lucas, as you know, San Lucas is a margin-based business, so it will depend on the prices of the metals. So but that's not the important part. The cost is not the important part for San Lucas. It's the margin. So yeah, we expect to have this $20-$22 of all-in sustaining sustaining costs. We do not anticipate any material changes to the cost in the second half of the year, other than a minor possible increase in Bolivia related to imported materials because of this devaluation that we are currently experiencing. But that should be, and the materiality of that shouldn't be much. Thank you. Next question. You made an additional 7.5 debt repayment to Glencore in Q2. So how much remains outstanding, and what's your expected repayment timeline? Right. Well, we have been working this early repayment schedule on time, Alenka. Our next payment is now during the first week of September, and our last payment is on the last week of October. Maybe very likely, we'll do both at the same time during this first week of September, and we'll get rid of this or get this behind us very shortly. So yeah, we're on time, and we will deliver on time. And after you finish the Glencore payments, how do you plan to allocate the capital, given your $58 million liquidity in Q2? That's a good question. We will be and remain disciplined with our treasury management. We'll be disciplined with our operations at our mines. Our approach will be always to look for more efficiencies technically on a daily basis. So for the timing this year, we will remain just accumulating and getting our balance sheet stronger and ready to get any opportunities in the future. But but that'll be the modus operandi in terms of our treasury. And how much CapEx will the company spend in the next 18 months? We should be looking at around $45 million of sustaining CapEx. That should be our normal. It's basically $30-$35 every year, but we are expecting in the next 18 months around $45 million. And what marketable securities are you holding? We have made some investments in US Treasury bills and bonds with an average maturity of one year. We don't like our money to be sleeping. It works for us. Perfect. Thanks. So given that Santa Cruz's stock is already up more than 500% year to date, what kind of further upside should investors consider? That's a good question, Alenka, and maybe not for us to respond properly. Investors have a better feeling than what we have. We will do our part. We'll do our work. We'll keep delivering, operationally speaking and financially speaking, on the health of the company, but if we refer to certain, let's say, analysts out there or or or what we hear out there, I mean, today we have a 4.2 times cash flow valuation on the company where our peers are north of 10 times, so I think there's still room to go, and more so as our investment community will see that we keep getting the company stronger and stronger, and also with some initiatives to keep growing organically that maybe early next year will be taking place. I think, Alenka, management's job is to keep the fundamentals strong. You know, investors do their analysis on a comparative basis with the other countries or with other companies, sorry. What we need to do as management is to keep our fundamentals strong, and our fundamentals are strong. We believe that what is coming is still good for the company. So we believe there's still room to go. Thank you. Would Santa Cruz consider an uplisting to the TSX and/or New York Stock Exchange? And if so, what's the timeline? Oh, absolutely. Absolutely. And we are actually, from an administrative and accounting point of view, we're getting ready for that. And we'll have news shortly, hopefully very soon. And definitely, that's part of our plan. Okay, great. So last question for me before I pass it to Magda for the mining questions. Is there any share buyback programs planned in the near future? That's a good question, Alenka. I mean, with the treasury as strong as we have today, that'll be maybe one of the initial thoughts that we all have. But but again, we're rethinking the idea in the sense that what is the best capital allocation for our investors? And maybe growing another of our assets organically might be a better way to go. Maybe as we still are not in the full, in the big board, maybe it's not the right time to to, I mean, to to put into action one of these buyback programs. Maybe let's wait until we're in the full in the big board and in the TSX. That'll give us more room to to run a broader program. But I will say that for the time being, maybe the best use of money will be to start aligning one of our assets into production, into a production decision soon. And just touching on production, production was down 15% year over year, largely due to the water inflow at Bolívar. Can you provide more detail on the remediation and the timeline for full recovery? Absolutely, Magda. Yes, we did have what they call a bucket of water suddenly, and unfortunately, it was two of our highest silver-grade veins, the Pomabamba and the Nane areas. Immediately, we took action. We implemented a third line of dewatering and a pumping system. As we speak, the pumping system is going on budget, so by Q4, this might be up on track, back on track, I'm sorry, and and to its normal and regular production levels. We are getting the mine ready so that nothing like this might happen in the future, so we have already prepared an additional dewatering line, so yeah, the mine, to respond shortly to your answer, by Q4, now in Q4, sorry, once we get into Q4, the mine will be at full production levels again. And touching on San Lucas, so San Lucas played a big role in offsetting the Bolívar shortfall. Can you discuss the sustainability of that ore sourcing strategy and its long-term role in your portfolio? Absolutely. Well, San Lucas is very strategic for us. We have more than 900 individual small miners selling ore to our company. We have three different patios strategically allocated. So as we might recall, Bolivia is a mining country by all means. So we foresee San Lucas to be part of our business plan for many years to come. Even though our mines are already limiting the milling capacity of our own mills, we might even look in the future for an additional mill to keep San Lucas performing and growing steadily because we do believe there's plenty of opportunity to keep San Lucas growing in the future. And touching on Caballo Blanco, it delivered major cost improvements. Are those efficiency gains permanent, and could this mine serve as a model for their operations? Yes. The cost improvements at Caballo Blanco are structural and largely permanent. They result from a combination of better mine planning with the operations. We have done optimization of ore blending. So these are not one-off savings, but rather an outcome of disciplined operational management, Magda. And in fact, Caballo Blanco is already serving as a reference for the other operations. And we believe that Mexico could be one of the operations that gets most advantage of because of the recoveries and processes that we have there. So yeah, Caballo Blanco is now an example in our company. Across the portfolio, do you see opportunities to expand throughput or improve grades to offset potential volatility at the individual mines? Well, actually, that's a good question, Magda. On a daily basis, we're trying to achieve efficiencies, right? We do see, for example, Zimapan, once we get to level 960 at full operation, full budget, which is around 50,000 tons a month. Just to give you a reference, Zimapan, we mill around 75,000 tons per month. And today, Level 960, it's only adding around 8,000 tons a month. So once it reaches full capacity, the budget for Level 960 is 45,000-50,000 tons. So once we get there, we'll see our head grades increasing slightly north of 80 grams of silver, 85 grams of silver, and zinc increasing as well north to the 2%. And copper, you'll see copper, a slight increase in copper in the range of 0.40%. And those, even though they are very small changes, let's remember that Zimapan is a high-volume operation. So those changes will make a significant improvement to the to the financial statements of that mine. And Magda, it's important to understand that to expand production and improve grades and to offset the volatility of the individual mines, that's what we do every day. That's our purpose as management. We are working towards doing that, increase production, getting less dilution, increasing recoveries, you know. And that's that's why Arturo was mentioning this San Lucas. San Lucas has has been proven a very strategic company for us. I know that what happened in Bolívar is not something that we want to happen, but if you think about it, it has shown our investors what San Lucas can do, which is to offset when something of these things happen, you know. So yeah, that's our main purpose as management. Thank you. And just taking a bigger picture at the production, you know, looking at your production goals for this year, given that first half silver equivalent production is down about 10% and Bolívar is not expected to fully recover from Q2 until the final quarter, do you expect that you'll be able to meet your production goals for this year? Well, always Q4 is the strongest quarter for for the company, especially in Bolivia, Magda. We we definitely have been, let's say, didn't meet Q2's production properly or as we would like to even because of the Bolívar situation. But we, we believe that we'll be close to our budget from a production point of view. But from our financial point of view, we'll be definitely in budget and we'll be meeting the cash flows that we are planning and budgeted for this year. So for us, that is an important objective. And we have to remember that although San Lucas has been proven to be very successful in trying to offset what has happened in Bolívar, the characteristics of the ore are different. The Bolívar, the Bolivar mine is more silver-oriented. And San Lucas, although it has silver, it is more zinc-oriented. So although even though it offsets some of the metal, it's kind of difficult. But we are aiming to do that. As Arturo is mentioning, we are working towards that. With the capital spend currently going into the Zimapan mine at Level 960, roughly what grade of silver would you be expecting to mine compared to the current 79 grams a ton? We expect a slight improvement there, Magda, in the range of 80-85 grams, which should be in that neighborhood. But even though it's a slight improvement, volume-wise, I mean, it it it actually has a very positive impact in your financials. Got it. And there is also an important relationship between head grade and recovery. So those small increases are also very important. Yes, as we speak, we're working very closely in the metallurgical area here at Zimapan. We have already bought and installed some flat cells that will help us recover better the silver. So those were bought in Q1 as well. And as we speak, they are in the final stage of being installed and properly getting to the commercial production of the milling facility. So we're doing these kinds of initiatives on a daily basis. And then touching on growth, you mentioned you're planning organic growth going forward. Would this involve the Soracaya project or any other Bolivian mines or San Lucas? And then I see an audience question here, yeah, about whether you have specific plans to start developing Soracaya. Good question, Magda. Definitely, Soracaya is a is a avery important mine, very silver-oriented. So we're going to start making more, let's say, important works into this mine actually in a few weeks' time. We have already prepared a team. We have a budget for that for this year. So our idea is to start aligning that mine to get fully permitted next year. And very soon, we'll have more news in that regard. But definitely, in our plans is to get that mine into production. And that's, as I was pointing out, a very silver-oriented mine with a historical PEA that was done in that property. Once it reached full production, which is around 850 tons per day, that mine should contribute around 4 million ounces of pure silver. So that's why it is an important asset for us and one that we're going to start making very significant works in the next coming weeks. And are you still focusing on maximizing silver production and recoveries at Bolívar, Porco, and Caballo Blanco? And if so, what work has been done today and what are the results that you're seeing? Yes, of course. Silver remains a core focus for the group, for the entire group, in terms of productions and in terms of recoveries. That's why we are aiming, as Arturo was mentioning, not only in Mexico, but in our other operations, trying to recover more of this silver content, especially in our lead concentrates. So yes, we are prioritizing that. We started this process in Bolívar. However, because of this flotation, we had to stop those initiatives. We are going to to keep doing it after Q4. But yes, silver remains our core our core focus. Our mining our mining plan is basically related to the silver high-grade areas. So yeah. And as a reference, Magda, I was just referring to Zimapan that we have just installed a flat cell into the flotation circuit. And that flat cell, those cells are specially aligned to recover more silver into into the lead. So definitely, that's something that we are working on a daily basis across all of our assets. And looking at the outlook, how should we think about silver equivalent production trends going forward into H2 and 2016 specifically? I see kind of a question here from the audience. Does or how do you plan to increase production kind of on these year-over-year type basis? There's a relationship, as we know from zinc and silver, the formulas and the metal prices that we use. So sometimes those those do not play in favor. When you use in favor, I mean to the overall silver equivalent production. If zinc remains at these levels and silver goes higher, silver equivalent ounces will go lower. So our main focus is, and what we compete on a on a daily basis on our own is production on a on a per mine basis or per metal basis. So our objective is to increase our production both in zinc, in silver, in copper, in the case for Mexico. So we that's our main focus. There are elements that we cannot control, such as metal prices, which come into the formula of silver equivalency. But also important to mention, this is one of the reasons as well why Soracaya is coming into our portfolio of producing assets, hopefully in the next coming, well, in the midterm, let me put it that way. We'll have more more news and more detail later. But Soracaya will be a great contributor for your silver equivalency production. Yeah, I think, Magda, it's important. This point is very important because we have received many questions about this silver equivalency. As Arturo was mentioning, we should focus on the metal production. When we're talking about metal, yeah, we're going to increase production not because of organic growth that Arturo was mentioning, also including Soracaya into this mix, but also on the productivity of our mines. We're trying to get as much more metal from the ore as as we can. But this is very relevant. When we are talking about silver equivalent ounces, just to give you an example, for example, if right now prices of silver go down, our silver equivalents can go up because of the zinc component there. So it's better to see our company in terms of the metals we produce. Of course, our silver equivalence is very high as well, and and we have very good numbers. But sometimes it's better to refer to production itself, not the silver equivalent part. And touching on that, what are the underlying supply and demand trends in the zinc market? That's a good question, Magda. Well, we see zinc strong. And mainly, one of the reasons, as Andreas points out at the beginning of this meeting, there's the inventory of zinc nowadays is literally in line. It has not grown. It actually, I think it's going to remain in those levels for the time being. That's why we see the TCs coming down this year and hopefully sustaining for the coming years. So we see zinc steady and maybe slightly increasing in the next coming years. And the demand is coming, you know. It's always construction. And I think something relevant, Arturo, here is to mention that zinc is now a critical metal for the U.S. So remember that zinc is an industrial metal. So the demand and supply are based on that. The inventory stocks are low right now. That's why the treatment charges are also low. So these refineries are trying to get more zinc. So if we are talking about probability, we believe that it's more probable for the price to go up than down. And if that happens, that'd be very good for our companies, well, because we have a substantial part of our portfolio of metals, zinc. And last question for me, before I hand it back to Alenka. It's about the elections. I see some audience questions as well. But following the end of two decades of leftist governance in Bolivia, do you plan to adjust your mining operations or growth strategies to new policies? And do you have any concerns, challenges? Do you see that it could potentially have positive impacts? Can you speak to that? That's a very interesting question, Magda. Well, we came to Bolivia years ago. I like Bolivia, Bolivia's culture, Bolivia's geology, by all means. It's a country with a lot of upside potential, geologically speaking. From our opinion, from our end, we're very focused in what we do, and regardless of which party is ruling or not. But definitely, when you see a right-wing party coming into into position, it it might bring some opportunities, but but for us, we can work with either either parties in place. So again, I mean, we came when the country, when the left wing was ruling in the country. We're very comfortable. It's a country that we feel more and more comfortable as as the years go by. As I said, every now and then, culturally speaking, it's very similar to Mexico. It's hardworking people, lovely geologic areas, upside potential that it's untapped by all means. So we're very happy to be there and to be one of the largest mining companies in the country. So that gives us as well a significant footprint in the country to review potential projects. And yeah, I think we're always open to new opportunities regardless of which party is ruling into the country. And I think, Arturo, you have said something very, very important. You know, we are one of the biggest companies, mining companies here in Bolivia. We're actually the biggest underground mining company in Bolivia and the second largest in the country. Bolivia needs exporting right now. So so exports are going to be very relevant. Either party that comes into power needs to improve the mining sector. That's a key point for for any of these parties because they need investment, foreign investment. So yes, of course, if market-friendly policies are in place, they are more more than welcome. We are very well positioned here in Bolivia as a company. We have many years of experience. We are in the places where mining is is getting more traction. Yeah, so I think Santa Cruz is very well positioned to to to to benefit from any market-friendly policies here in the country. Great. Perfect. I have a few more questions. Can you provide outlook for what's in store for the second half of the year and for 2026? Yes, actually, well, the rest of the year, the second half, Alenka, we'll keep our eyes closed to our disciplined approach across all the areas, operations, financially, our treasury, and corporate-wise. I mean, we'll keep advancing in these projects, getting the company fully listed on the big board and some other initiatives. And always, I mean, organically speaking, we'll we'll we'll start making, as I was pointing out, some advance, some some progress into our Soracaya property. And we'll keep an eye open into opportunities that are and bring value to our shareholders. Thank you. And are you keen on acquisitions? And would you consider changes to your portfolio, especially given your strong presence in Bolivia? And if so, are you also staying within Bolivia and Mexico only? That's a very interesting question, Alenka. I think that one of the most important assets that we have as a company, it's our people, and by that, I mean, today, we're ready and prepared to evaluate any asset in any country. Our focus, of course, is the Americas, and we're open to review and to see opportunities. Actually, we we had been presented with different opportunities, so we're ready to to take advantage of the strengths of the company. And and as I was pointing out, our people, we have a multidisciplinary team, both in the operations as well as in the administration and and management, so now, with a strong treasury building literally on a weekly basis, we might be able to do something outside definitely of Bolivia and and in Mexico, outside of those two countries. There are many other countries which are very interesting for us here in Latin America. So yeah, we're definitely open to ideas in the future, but always always with the same premise, ideas that we can execute and that are accretive to our investors, for sure. We need to remember as well, Alenka, that we have done a successful acquisition, a very big acquisition, a very successful one. We not only increase it in terms of of growing Santa Cruz, but also we increase the production of these operations, and as Arturo was mentioning, and it's very relevant, we have the team, and when you have the team, remember that I I I always like to say that we are not only a multi-jurisdictional, multi-asset, multi-method, but also a multi-method company because we have different methods of production. That brings a lot of opportunity. I think Santa Cruz brings a lot of value into the table because it has shown the investor community that we can operate any type of mine, and we are ready if there's any opportunities in other countries. We believe that Latin America is a place that we can move very easy. We know the culture, and we feel comfortable there. Got it. Thank you. And looking at the audience questions now, where does management see Zimapan all-in sustaining costs range to be in the medium to long term? Our objective, Alenka, is to get Zimapan below $24-$25 in that range. We still have some investments that we would like to do in the future. There's an inclined shaft that we are planning to do in the future that will go directly to Level 960. That will eliminate a lot of trucking inside the mine, which will save us a lot of money. Once we have that in place, definitely this mine will be a very efficient mine to run. But nonetheless, in the meantime, in the short term, ranges of $24-$25 at the highest, it's where Zimapan will be. There are two other main factors that we need to consider there, Alenka. Remember that in all-in sustaining costs, you have the CapEx, which Arturo was mentioning is going to go down. We did a lot of investments there that are already there, but also the appreciation of the Mexican peso. Remember that the Mexican peso has appreciated a lot, and most of our costs are in in Mexican peso, so that plays another. It is an external factor, but we need to consider that. Remember that a year ago, or maybe a little bit more, the peso was at 21-22. Now it's around 18, Arturo, 17 something, so the appreciation has affected us a little bit. That is something that we not expect that the Mexican peso should appreciate much more, so Arturo is right. We should expect to see $24-$25 all in sustaining costs for the Zimapan operation. Yeah. As Andrés points out, if the peso devaluates a little bit or slides a little bit here, definitely we'll be below those levels. I think this is the last question. Do you expect to distribute dividends in the near future? That's an interesting question, Alenka. I think for the time being, no. I think for the time being, our idea is it's a growing company. Not this year. We're not going to declare anything in that line this year, but always open, as I was pointing out, every time or every decision that is accretive to our investors, it's always on the table, so that's something to review in the future. Our main objective right now is, as we say, walking the talk. Our next step here is to pay out Glencore. It'll be followed by our organic growth initiatives, and always having in mind that we will keep a very strong balance sheet and and technically a debt-free company. So but interesting question, food for thought, if you allow me to put it that way. But not for this year. We'll review that next year. But remember, Alenka, again, that when when you are discussing these things, we need we need to put into consideration what are the best uses of cash. We believe that we are a growth company. And since we are a growth company, we're looking for investments that could be very accredited to our stockholders and even our stakeholders as a whole. A dividend, I know that sometimes could give that a good perception of the company. But believe me, but we we are always trying to see what's best for the company in terms of fundamentals, also to our investors. But I think if we take care of the company, if we put the money where where it gets more advantages, that's going to solve itself. And and also just to add on that a little bit, Alenka, our idea is that if we start paying a dividend, it should be sustained for the years to come, at least. So I think we're not prepared yet because we have still better better better ideas for the money to create value. But eventually, that's something that we definitely are planning to do. Remember, as friends and family, we own a significant amount of shares. So we would love to see that in the future. But let's prepare the company towards a sustainable payment of a dividend payment. And once we're there, definitely, that'll be something to do. Got it. Well, that looks to be all the questions for today. Thank you so much, Arturo and Andreas. Is there anything else you guys like to cover today? Not from, not from our end. Just, I mean, we appreciate the the vote of trust that our investment community is giving us, recognizing the value of the company and and the results of such a great team of people with more than 3,000 employees today. We we thank every one of us to our investors, and we'll keep focused and working on on delivering value to our shareholders. Well, thank you so much to everyone who joined today. I hope you have a great afternoon.