Hi everyone, thank you for joining us. Today we have an update from Santa Cruz Silver, who just put out their Q3 results last week. With me, I have Arturo, Andres Bergal, CFO, and from Adelaide Capital, we have Magda Gardner. The format for today's webinar will be a Q&A, and we'll start off with the questions submitted in advance. But you are welcome to submit a question during the webinar in the question box below. And we may be making some forward-looking statements, so if you'd like to know more about those, you can find them on the company's website. And with that out of the way, welcome Arturo and Andres. Thank you, Alenka. Thank you for having us here. It's always a pleasure to be here and hearing our investors' questions around the company. Thank you, Alenka. Of course. Let's get into the questions. So Q3s showed notable financial developments. We had revenues increase slightly year over year, Adjusted EBITDA up 30%, but net income declined 7%. Andres, could you walk us through the key operational and financial factors that explain the strong EBITDA growth alongside the softer net income performance? Yes, of course. And I think it is important to understand this 30% year over year was driven primarily by three factors. The first factor was a favorable metal price environment, especially for silver, as we all know, that supported our revenue. The second factor was a cost reduction or cost optimization, as you better say, a better term for us, you know. And then also the depreciation of the Bolivian currency compared to last Q3 last year. So those three things supported this revenue increase, although that we have been having some issues with the Bolívar mine and our veins. However, our EBITDA, as you can see, has been very strong. The difference between the EBITDA and the net income comes from basically the foreign income taxes, which was done because of a restatement that we have in 2024. But that's it. So basically, better prices, cost optimization, and also the depreciation of the Boliviano. Of course, with some major improvements in, for example, Caballo Blanco, not only cost optimization, but better recoveries and a more stable production. Got it. You slightly covered the all-in sustaining cost in the Boliviano appreciating. But can you explain the main factors behind the all-in sustaining cost spike? And how does the FX revaluation impact margins? And when do you expect all-in sustaining costs to revert back to the mid-20s range? Okay. There are, again, three factors here. The first, since we are discussing unit cost, the water inflow event in Bolívar had a direct impact in our cost per ton. Remember that we are recovering these areas. We are doing some investments there, and we are not getting metal. So in terms of unit cost, that brings your all-in sustaining cost higher. The second part is that Zimapán is doing a lot of investment in underground equipment, but especially in our milling facility in Mexico. As you know, this sustaining capital goes into the all-in sustaining cost. And we are doing these investments because we are trying to get better recoveries from that milling facility. Remember that Mexico is a high-volume mine. So even getting 2%, 3%, or 4% higher recoveries in that mine could be very significant in terms of revenue for us. And third, remember that I was saying that the Boliviano currency had depreciated against last year. However, from Q2 to Q3, there has been a big appreciation of the currency. And basically, this appreciation is largely driven by improved confidence in the new administration, the government in Bolivia. Because the macro fundamentals itself have not changed in Bolivia. And remember that most of our costs are in Bolivianos here. The macro fundamentals have not changed, but there's a lot of hope in this new government, which is really good because it's a government that is very inclined to private investment and foreign investment. So this appreciation between Q2 and Q3, which was very relevant, it was 30%, reflects that. But we expect that our all-in sustaining costs will revert back to the mid-20s, I think, March or maybe the beginning of second quarter next year. Okay. Got it. Thank you. And Arturo, if you could answer this one, what measures is the company taking to reduce the cost of production and increase profitability? Absolutely, Alenka. Well, on a daily basis, we're trying to achieve efficiencies across all of our operations. And things that we do on a daily basis is we review our mine plans. We also correct them if the case is needed. Sometimes, depending on the metal prices, we go and mine in some different areas different from our weekly budget or monthly budget. So we try to get that flexibility across all of our mines. In addition to that, we're working today on a standardization process to have all of our underground equipment being the same brand and having the most utilization of this equipment, which are very expensive equipment. Just to give you an idea, last year, we just bought around 12 underground equipments in Bolivia, so in Mexico for the Zimapán mine, and around six underground equipments in Bolivia. So overall, we're changing our equipment to new equipment, and that will give us efficiencies and more utilization time of our equipment. In addition to that, we're working closely at each and every one of our milling facilities to try to get the best recoveries out of the ore we're processing. And one case, for example, is our Zimapán mine. We're just building a new flotation circuit for Zimapán. We're installing a flotation circuit. The flotation circuit will allow us to recover silver better than what we had been recovering in Zimapán. Just to give you a reference, Zimapán today's recoveries are in the high 70s. But with this new circuit, we expect to go to north of 85%, 84% recoveries for the silver. That single improvement will allow us to have better revenues at Zimapán and achieve better efficiencies. So we're working on a daily basis on all areas, even on our SG&A administrative departments. So that's a constant for us, Alenka. Great. Thank you. I just point out some areas that we're working at. Appreciate it. Now looking in Q3, you fully settled the cash consideration to Glencore for the Bolivian assets. You still finished the quarter with an impressive $69 million in working capital and $59 million in cash and marketable securities. Arturo, are you able to share what plans you have to deploy this liquidity in 2026 across development, capital drilling, operational improvements? Do you have any post-Glencore obligations? Yeah, that's a very good observation, Alenka. Actually, as you point out, I mean, this year we have Glencore, I mean, $40 million, and even though in Q3, we closed with $60 million in cash. Now, as we keep going, I mean, we're building our treasury stronger, and we expect to close with a very solid full year from a cash point of view. Definitely, as we keep going with today's metal prices and with the efficiencies that we're budgeting for next year, we should keep increasing our treasury. That will allow us to keep exploring, to keep preparing our mines for the future, and also, we're in parallel, as you may recall, getting Soracaya fully permitted so that we can eventually start building that mine by next year, so yeah, today's metal prices, together with the efficiencies that we have in place, are helping us to build our treasury. In addition to your question, sorry, what else do we have pending with Glencore? We have the conditional value rights, the CVRs, which, as you may recall, they are capped at $77 million, $1.3 million a month. And they are triggered if and only if zinc goes north of $3,850 per ton. We would love to pay those because just as a reference, for every million dollars we pay to Glencore, we're making down to the bottom line, down to our bottom line, around $9 million-$10 million with today's metal prices. So those are the only pending payments that we have, which are conditional. Thank you. And given the company's diversified multi-metal revenue profile, Arturo, could you explain if volatility in commodity prices influences overall profitability and which metals currently play the most significant role in driving margin performance? Yeah, that's a good question, Alenka. I think definitely the most important metals that we have or that we produce, we produce a little bit of Mexico, but it's not significant, and we feel that being a diversified metal producer helps us in a significant way. I mean, at least it diminishes the volatility that silver has. As you may know, I mean, silver, that's why they call the devil's metal, because it's high volatility, so it helps us to plan throughout the years. It helps us to have more concise budgets and revenues in the company as zinc is more stable than silver. In addition to that, as you might be aware, producing zinc as well broadens the amount of refineries across the optionality of refineries that are out there, so we always find a good port for our metal and our concentrates. Perfect. Thank you. Now, looking at your inventory, I have a question for you, Andres. There is a jump from Q2 to Q3 from around $38 million to $50 million. Does that mean you didn't sell all the mine material and that the earnings per share could have been higher, but you selected to wait by expecting higher silver prices? Look, yes, inventory increased from Q2 to Q3, but not because we were waiting for higher prices. We don't like to speculate into prices. We are producers. So it was basically mainly due to two operational reasons. First, we built up our inventory, especially because of this Bolívar issue that we have had. So we are keeping this plant producing at full capacity while these Naney and Pomabamba banks recover. So we need extra ore available so the plant won't stop. So it was a strategic decision in the term in the ore side. Second, the increase in the concentrate inventory was mostly a logistics issue. Most of the excess that we have in inventory is lead concentrate. And so people can understand, we sell lead concentrate, we deliver at the vessels. Zinc concentrate, we deliver them at the port. So we have some logistical issue with some vessels this quarter, but that has been taken care of. Yes, since lead concentrate is more valuable than zinc concentrate, our inventory has gone up. But we are doing everything so we can go back to our normal levels of inventory. But yes, this Q3, we're going to have more revenue due to that, and also Q1 2026. And it was basically just a good coincidence that the prices went up. So yeah, but it's not because we are speculating on prices. It's just what happened. Okay. Got it. I'm going to pass it on to Magda now. She has some technical questions. Yeah, thank you, Alenka. So I see some audience questions here on the Bolívar flooding. So following the mid-May 2025 water inflow, can you remind us which areas were directly affected? And can you give us a bit of an update on how the recovery work is going? And do you have a sense of whether it will return to full capacity this quarter? Yes, Magda, absolutely. I'll take that question. So yeah, I mean, Bolívar flooding started in May, and it actually affected two of the banks, the Pomabamba and the Naney banks, out of five banks in Bolívar. The Pomabamba and Naney banks are the highest silver-grade banks at Bolívar. So as we speak, I mean, once we experience that flooding, we immediately act upon that. We start acquiring the necessary equipment to dewater that mine. And actually, it's in budget right now. It's in process. And it takes two steps. I mean, the first step will be to dewater the mine. That step is ongoing. And an important milestone will be now in December, January, where we will be reaching level 335. At that moment, we'll start being able to access the Pomabamba and Naney banks at the upper levels. The second stage will be to start making sure that these mines, this underground development, I mean, in a safe, I mean, in good shape to have our miners coming in and to work again. So that will take another few months' time to make sure that we reinforce those areas that were weakened. But more important, the integrity and the accessibility to the banks has been untouched. It's intact. It's just a matter of making sure that all the reinforcement and all those areas that require additional reinforcement, sorry, are stable before making or having one of our miners coming into those areas. So that will take time. We believe that by April, we'll start seeing more and more silver coming out of Bolívar. And definitely, by Q4, silver production at Bolívar will be at full capacity. So by then, we should be recovering the 200,000 ounces of silver on a quarterly basis that we're not producing or that we didn't produce in Q3 due to these water problems. Got it. Thank you. So just to confirm, that's Q4 20. 2026. Okay. Got it. Thank you. And I see an audience question here. This is a lot of water that came into one area of the mine, and you had to stop production. Was it sudden? Did it kind of start to subside, and where did it come from? It came from Pomabamba. Actually, the area at Pomabamba, the south of Pomabamba, where we experienced an inflow of water significantly higher than what we were used to. Today, we're preparing the mine, and it's ready for that inflow of water. I mean, we can process today four times the water amount that we were in the beginning of the year. So we can, I mean, we can bring and dry the mine relatively fast. The problem is that we need to treat the water as we send it outside the mine. The water comes with some acidity. So we need to treat it properly before discharging it. So that's what slows down the process. If it was pumping the water, we would have a problem of a month. The bottleneck here is treating the water properly before discharging it outside of the mine. That's the bottleneck at this moment. Got it. Thank you. So I think that may have addressed the other audience question I had lined up for you, which was, are there any more significant production challenges that are kind of showing up as time passes? So is that kind of having to treat the water before it moves out? No, I think, I mean, yeah, generally speaking, across all of our assets, we expect the assets to keep producing in line and in budget other than this Bolívar situation, so yeah, I think the worst of this situation is behind us, and the watering process is well under control, and we should see, as I was pointing out by April, silver coming up slightly and improving silver output from Bolívar slowly and at full capacity or at full production by Q4. Got it, so like a ramp-up. Yeah. Sorry, Magda. I think it is important that to your question, it's not just only pumping. It's watering, treating the water, but also a safety issue. Once we dewater the mine, we have to take steps to bring this mine into safety again. For us, we are a company that we value life more than anything. So we have to take care of those things first. And then you are recovering, gradually recovering the mine. But you need to take care of those things. You need to implement some safety measures, environmental issues, etc. So it's not just a thing to bring water out. We have to follow our strict procedures in order to get back into this mine. Got it. Thank you both, and then there's a question. Did that water inflow impact the economics or the accessibility or anything for the other silver deposits at Bolívar? No, no, no. It was only Pomabamba and Naney banks. And we have that very under control as we speak. Thank you. And the integrity was not. We had nothing to do with the integrity. I think the structure is very solid. Accessibility, we're going to get there eventually. And the economics, with these prices, the cost of the mines going down, etc., but the economics were not affected at all. Excellent. Thank you. Can you share any details about any preventative infrastructure that was implemented after the water inflow? And if you've made any changes to being prepared for unforeseen disasters moving forward? Absolutely. First and foremost, we have already a technical team and a very experienced technical team, which came out of Mexico to Bolivia. They are experts in water control situations. And they are doing different things to delineate the water flows. Where are they coming? What will be the best way to mitigate them? And where should we prepare certain of our developments to get or to be outside of those areas? So definitely, that's, let's say, from a technical point of view. And in addition to that, in a practical way, we have already installed pumping capacity that will allow us to manage this situation and even in a, I mean, four times the water that we're experiencing today. So we do not expect this to happen again, sorry. We are taking every step, first of all, for the safety of our people, and second, to recover those important areas for us in Bolívar. We're also doing hydrological studies there for all the mines. I think that's key as well. Got it. Thank you, and moving to Caballo Blanco, Zimapán, and San Lucas, they all delivered solid production results this quarter or in Q3. Do you expect this positive performance to continue into Q4 and into 2026? Yes. Yes, Magda. We do expect this positive trend to continue. We have a very committed team in place, and the improvements that we have been doing in these operations, I don't know if you recall, but in Q3 2024, we have done some major improvements in Caballo Blanco, trying to bring more silver into the lead concentrate where we get paid more. These improvements are taking place also in Zimapán, in Mexico, and we are going to do the same thing in our milling facilities, both at Bolívar and Porco. San Lucas has been always a very good company for us. Its business model has proven very successful, as you can see with this Bolívar issue. San Lucas was able to bring ore to support this production decline. Of course, San Lucas brings more zinc-oriented than silver-oriented, but still, that brings revenue into the company. That's a good thing to have a multi-asset company. Since you have that, you are able to recover from these hiccups, as you can say, but we have learned a lot from it, and I think that's the value that Santa Cruz brings to the table. We have different methods of production, multi-asset, multi-jurisdiction. All those things are very helpful in terms of our revenue and production stabilization. Thank you. Thank you. And touching on San Lucas for a minute, can you, Andres, touch on what overall role did San Lucas play in the results of the portfolio? Of course. Remember that the objective of San Lucas is to keep our milling facilities running at 100%. That's the first objective that it has. So with this May water event that we have in Bolívar, San Lucas stepped in and was able to provide ore. So our milling facility, especially in Bolívar, kept running at full capacity. So yes, San Lucas has been performing really well, also because with these metal prices and the business model that we have had, our margins have been consistent and even increased this quarter. Got it. Thank you. And then, Soracaya, I see lots of audience questions here. Are there any updates here on the development schedule and a potential expected timeline for advancing to initial production? Something that, Magda, yes, definitely, Soracaya, as we announced back then, we're in the process of getting that mine fully prepared for production. We have already the social permit, which is the most important or more, let's say, time-consuming permit to get. So with that in hand, we feel that before summer, or let's say, by summer this 2026, we should have that mine full permit. In parallel to that, we're making metallurgical studies. We're reviewing the mine plan. So we're reviewing the mine plan and the milling facility that will be required in detail for Soracaya. So once we have full permits on hand, we'll make a decision. And at that moment, if we're moving forward, building that mine will be the case, indeed. It will take a year and a half to have that mine in full production. So that's where we are standing today in Soracaya. Got it. Thank you. And do you have a sense of a CapEx range needed to bring Soracaya into the first phase of production? And do you have a sense of how you would structure these costs with cash flow, debt, financing? That's a good question, Magda. Actually, the CapEx is relatively manageable. It's $50 million, zero. That will allow you to get that mine into commercial production, and we'll be funding those monies from our own cash flow. Today, as you saw, I mean, we closed the Q3 with $6 million in the bank as we speak, so even with the same cash flow that we'll be generating throughout the year, we'll be building that mine. And at the same time, we will always keep a very strong treasury, so we'll support that growth with our own cash. Thank you and just touching on drilling before I hand it back to Alenka. Given the current reserve base, do you have sufficient mineral inventory to sustain operations long-term, and how will the 2026 drilling program support mine life extension and future reserve updates? That's an interesting question, Magda. And very important to mention that narrow-vein systems are very challenging to inventory when you do those from drilling or diamond drilling campaigns. So we always keep in mind four years of reserves and 10-12 years of resources. If you consider both, your mines have around 10-12 years in resources. And we always replenish those resources that are mined by the mining department. So if you go back to our original resource estimates, we're always keeping that in place. And there are reasons for that. As I was pointing out, bringing your resources, I mean, or increasing your resources in narrow systems is expensive. And both in Mexico and in Bolivia, it's very clear where the mineralization goes. All mines across all of our portfolio of assets are open along strike and at depth. So we believe these mines will keep growing and will run for years to come. Just as a reference, let's don't forget Bolívar. I mean, sorry, well, Bolívar has been running for 200 years nonstop. Porco has been running for 500 years nonstop. And the continuation of those veins are very clear and very accessible for exploration and for development eventually. We're also doing, Magda, a reserves update. Remember that our National Instrument 43-101 was performed in 2023, the beginning of 2023. With current prices and our current cost, our reserve base, resources are going to go up substantially. Correct. Thank you both. Thank you, Magda. I have a few more questions to cover. So we've seen incredible performance from your stock this year. The market cap has grown from just over 100 million at the start of the year to now just being over a billion market cap. Now, based on overall performance and current catalysts, do you see room for further upside? Yes, Alenka, we do see further upside. But we have to look this into two areas. First, it relates to the type of company we are building. We have said that we are a multi-jurisdictional, multi-asset, multi-metal, but also a multi-method company. We believe that Santa Cruz is very well positioned, not only to increase the production of our current assets, our organic growth. We believe that we can also bring other projects into our portfolio. And since we are miners, that's what we do, we believe that we have a lot of potential to increase our asset base, our revenues, and even our net income. And that's our role as management. But there's also the other issue, which is related more to the valuation of our peers. For example, that's more an investor's thing. If you compare to our similar peers, basically, for example, whether enterprise value, three EBITDA, or other type of measure, we're still behind our peers. For example, we might be five times where our peers will be 12 times EBITDA. I think in both terms, we have a lot of upside. We are more focused on what we do, increasing our production, increasing our productivity. I think the know-how that Santa Cruz now brings to the table is very important, not only in the Americas, for example, also in Bolivia. Remember that we are producing. We're currently doing that. We have been doing that in our different group, both in Mexico and in Bolivia, for several years now. Yeah, and just adding on to Andres' comments, I mean, let's remember we have no royalties, no streamings, technically, no debt. So the company is very healthy. So every dollar that comes into our treasury is a credit to our investors. Thank you. Now, touching base on the Nasdaq uplisting, we have a few audience questions on this. First one is, has the company decided what is the ratio for the reverse split? When will it be? And what is it? Oh, yes, absolutely. Well, we're going to go with a 4 to 1 split or consolidation, sorry. And with that, we feel comfortable that we'll be meeting, of course, the minimum standard of $4 in the Nasdaq, right? And sorry, Alenka, the second question was? What the timeline is to complete the Nasdaq uplisting? I mean, it's going to be in mid-January or late January next year, 2026. Perfect. And what were the key reasons for choosing the Nasdaq over the New York Stock Exchange for that U.S. uplist? Well, we feel Nasdaq is a better fit for us. This is a growing company. This is a company that, I mean, we still have a few years more to grow and to keep. So we felt that the NYSE represents a better place for us. And our investment committee will be more likely in the NYSE than in the Nasdaq, where you have more mature companies and companies at a different stage in their development. So we believe that NYSE is the best option for us. We have also done and reviewed different sensitivity analyses. And we are convinced that the NYSE will give us the trading and the volumes that we need. We're very pleased to be shortly in the Nasdaq that many more U.S. investors can have access to our company. So Nasdaq is the perfect fit. Perfect. And is the TSX mainboard uplisting still under evaluation for 2026? That's a good question, Alenka. It comes, let's say, in parallel with the Nasdaq listing. Once we list Nasdaq, we'll be automatically graduating to the mainboard at the TSX. Okay. Perfect. Given the company's strengthened valuation and significant share price appreciation, are you evaluating acquisitions to enhance the portfolio? Yes, definitely. Today, as you point out, I mean, with a strong treasury and a strong cash flow coming into the company, I think it's the right moment for us to see projects or ideas outside of our portfolio of assets, always with the same premise of assets or acquisitions that are very accretive to investors and that definitely add value to us as a company. And assets where we can add value as well from a management point of view, from a know-how, from a technology or synergies. So those are the premises that are driving our ideas to look for different alternatives outside the company. But yes, we're looking for different initiatives there. Thank you. And what is the current VAT outstanding that Santa Cruz needs to collect from the Bolivian government? We had a few audience questions on this. It is currently around $60 million, and we have been collecting these value-added taxes. Especially this year, our collection process has been more efficient to do that, and we have done because, as everyone recalls, we pay a lot of taxes this year that before we took over this operation, we were under a tax payment plan, so we have been able to pay those taxes, so we are in discussions with the tax authorities, our processes to bring all the information that the tax authority needs to give back this VAT. We are doing that, so we are very focused on that, and we have been very successful in doing that. I think we are one of the fewer companies here in Bolivia that has been successfully collecting this VAT. Oh, Alenka's Wi-Fi might be. Perfect. Thank you. I think it's just a little bit glitchy right now. So my apologies for that. Another question from the audience here. Please describe any specific returning of capital to shareholders, so any extra special dividends. Would $75 or $100 silver accelerate these plans? Alenka, can you repeat? You break up there. You can't hear you. As you are. Yes, my apologies. We couldn't hear you. No, no worries. My apologies for that. The Wi-Fi is a little bit glitchy. No worries. Could you describe any specific returning of capital to shareholders, any buybacks or special dividends? Would $75 or $100 silver accelerate these plans? That's a good question, Adelaide. I mean, sorry, Alenka. Sorry. Definitely, those metal prices will get us thinking about accelerating those plans, especially the share purchase program, the repurchase program. First things first, we need to make sure that we have and keep a healthy and strong treasury. We need to make sure that our mines are producing at efficiencies. That requires the CapEx or the budgets that we have. Once we are able to achieve a few years or quarters of solid results, as we have been doing so far, but once we're listed at the big board as well, that will allow us to have a larger amount of or a larger share buyback program in place. That's something that we'll be doing. I don't want to say when because there are many ifs in place. But yes, that's something that we have in mind. And eventually, we will put hands into a share buyback program. Remember that we are a growth company. We are aiming to become a very important player in terms of the silver industry and also in the base metal industry. Any extra capital that we get, believe me, we're going to look for any projects. We believe that we are good producers. We have shown that we are able to bring these opportunities into the hands of our investors. I think we are going to keep growing to become one of the most important metal producers. That's our objective. Perfect. Thank you. Another audience question. Assuming current commodity prices and cost, what would the company earn on an EBITDA basis after the production resumes to a normalized basis? If you're able to answer this. Yes, of course. With the current prices, we should be looking at an EBITDA, if we are full production in the Bolívar again, north of $110 million-$120 million in EBITDA. Perfect, and I think I just have one more question, so without being too forward-looking, where do you see the company in the next five years? Definitely. We definitely see the company growing, Alenka, and we see the company producing twice as we're producing today, but always having in mind profitable ounces and with a very healthy balance sheet, so we see the company twice the size that it is today and always in a good and solid with a solid balance sheet. Perfect. Thank you so much, Arturo and Andres. Congratulations on all this success. Just wanted to ask if there's anything else you'd like to cover today. Not from our end, Alenka. I cannot think of anything else. Just thanking our investment community. Thank you for the trust and confidence that you're giving to us. We will keep working hard to make this company a successful story in the next coming years. Thank you so much, Alenka. Thank you. Yes. As you know, we are a boots on the ground. Perfect. Thank you so Thank you so much. If anyone has additional questions for the virtual one-on-one call, please email me at alenka@ca.