Earnings call transcript: G Mining Ventures Q2 2025 sees strong revenue growth

G Mining Ventures reported robust financial performance for the second quarter of 2025, with revenue reaching $130 million and net income amounting to $49 million, or $0.21 per share. The company highlighted its strong operational momentum and competitive cost position, supported by significant gold production and favorable market conditions. Despite a modest increase in stock price by 0.23% to $17.55, G Mining Ventures maintains a positive outlook with ambitious production targets and strategic project developments. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, with the company demonstrating strong financial health with an overall score of "GREAT."

Key Takeaways

• G Mining Ventures achieved $130 million in revenue for Q2 2025.
• Net income reached $49 million, translating to $0.21 per share.
• The company produced 42,587 ounces of gold during the quarter.
• Operational efficiency is highlighted with a 75% EBITDA margin.
• Upcoming projects like Oko West are expected to drive future growth.

Company Performance

G Mining Ventures showcased impressive performance in Q2 2025, capitalizing on strong gold prices and efficient operations. The company reported a 75% EBITDA margin, underscoring its ability to maintain profitability in a competitive market. With trailing twelve-month EBITDA reaching $167 million and a market capitalization of $2.89 billion, the company has demonstrated strong execution capabilities. Production efficiency was evident as the company produced 42,587 ounces of gold, contributing to a first-half total of 78,165 ounces. The company’s focus on cost control and operational excellence has positioned it favorably within the industry, with InvestingPro data showing a remarkable year-to-date return of 62.5%.

Financial Highlights

• Revenue: $130 million in Q2 2025
• Net Income: $49 million, or $0.21 per share
• Free Cash Flow: $60 million in Q2, $96 million year-to-date
• Cash Balance: $156 million
• EBITDA Margin: 75%

Outlook & Guidance

G Mining Ventures remains optimistic about its future prospects, with annual production guidance set between 175,000 and 200,000 ounces. This optimism is supported by InvestingPro data, which reveals that three analysts have recently revised their earnings estimates upward, with revenue expected to grow significantly this year. InvestingPro subscribers have access to 11 additional exclusive insights about G Mining Ventures, including detailed analysis of its growth prospects and market positioning. The company anticipates a strong second half of the year and is actively advancing its Oko West and Gurupi projects. Oko West is expected to commence production in 2027, with an estimated annual output of 350,000 ounces and all-in sustaining costs of $11.23 per ounce. The Gurupi project is also progressing, with a drill program planned for Q3 2025 and an increased exploration budget.

Executive Commentary

Louis Pierre Genac, CEO of G Mining Ventures, emphasized the company’s strategic focus, stating, "Our strategy is straightforward. Disciplined execution of the Yoko West project to achieve 500,000 ounces of production in 2028." He also highlighted the company’s financial strength, noting, "We have the financial capacity to advance Oco West while maintaining a strong balance sheet."

Risks and Challenges

• Fluctuating gold prices could impact revenue and profitability.
• Project execution risks, particularly for Oko West and Gurupi.
• Potential regulatory changes in operating regions.
• Market competition and cost pressures.

G Mining Ventures’ Q2 2025 performance reflects its robust operational capabilities and strategic foresight, positioning it well for sustained growth in the coming years.

Full transcript - G Mining Ventures Corp (GMIN) Q2 2025:

Conference Operator: Good morning and welcome to gMining Ventures Results for the Second Quarter and 2025. All participants are in listen only mode. Following the formal remarks, we’ll open the line for questions. Please note that today’s call is being recorded. I’ll now turn the call over to gMining Ventures.

Please go ahead.

Louis Pierre Genac, President and CEO, gMining Ventures: Thank you, operator, and good morning, everyone. My name is Jean Francois Lamont, VP of Investor Relations. Before we begin, I’d like to remind everyone that certain statements made on this call may constitute forward looking information. Please refer to our Q2 twenty twenty five MD and A and news release for important cautionary notes and risk factors. Joining me today are Louis Pierre Genac, President and CEO and Julie Laplace, CFO.

Today’s remarks will walk through the operational and financial highlights of Q2 and half year twenty twenty five, progress at Oco West, updates on Gurupi and closing the call with our catalyst and outlook for the rest of the year. Louis Pierre, over to you. Thank you, JF and good morning everyone. With gold prices up nearly 40% year over year and sector margins at record highs, Ximen advanced on multiple fronts, reaching steady state operations at Tuk and Tansino, generating record free cash flow to strengthen our cash position while progressing development at the flagship Oco West project and driving exploration across the portfolio. At Tukentanzino plant ramp up is now complete and expert systems commissioned are leading to gold recoveries achieving 90% in line with expectations.

At OCA West early works construction is progressing nicely and continuing to build momentum with ramp up of the workforce now reaching four eighty five people. With the EPA having recently approved the ESIA, we now await the imminent issuance of the full permit. Exploration field work at Gurupi has identified promising drill targets and recent positive stakeholder developments have prompted us to fast track our exploration plans with the drill program set to commence in Q3. During the second quarter we produced 42,587 ounces bringing the first half total to 78,165 ounces in line with our mine plan and guidance, which is weighed toward higher grades and throughput in the second half. Cash costs and all in sustaining costs remain competitive supporting strong margins of over $1,600 per ounce at current gold prices.

The high margins achieved of around 75% have translated into $96,000,000 in year to date free cash flow. With $156,000,000 in cash and net cash of $49,000,000 we have the financial capacity to advance Oco West while maintaining a strong balance sheet. With 78,165 ounces produced in the first half we had delivered 45% of the lower end of our annual guidance range of 175,000 to 200,000 ounces. This performance aligns with our mine plan, which is weighed toward higher grades and throughput in the second half. With ramp up at the plant now complete, we anticipate a strong second half achieving our guidance.

Our all in sustaining guidance of ten twenty five dollars to $11.55 dollars per ounce adjusted for a production tax introduced during the quarter remains peer leading. First half all in sustaining cost was $11.70 dollars per ounce and is expected to decline in the second half as hard gold production drives unit costs lower. With stable plant operations and an expanded mining capacity, we are well positioned to maintain strong operating momentum and meet our 2025 production and cost guidance. In the second quarter at TZ we continue to execute strongly while maintaining our focus on safety delivering the quarter with zero lost time incidents. Mining productivity averaged 48,000 tons per day in Q2, up 18% from Q1, reflecting improved fleet availability and haulage efficiency.

We moved a total of 4,360,000 tons of material including 1,650,000 tons of ore at an average grade of 1.35 grams per ton resulting in a low strip ratio of 1.64. The additional mining equipment received in Q2 will be fully commissioned in Q3 resulting in higher mining tonnages in the second half of the year. On the processing side, we milled 1,000,000 tons in the quarter at an average grade of 1.45 grams per ton with recoveries averaging 90.3%. Importantly, in May and June we averaged approximately 96% of nameplate throughput. These gains reflect the benefits of the April Sagno liner replacement and the commissioning of expert control systems on the Sagno and flotation circuits, which have improved plant stability, throughput, and enhanced flotation recovery.

Cash costs in Q2 were $763 per ounce and $728 per ounce for the first half. This includes the impact of the State of Peraz production tax implemented March 27 and revised May 28. The change introduced a fixed component of approximately BRL179 per ounce or approximately $30 S. Per ounce, which was not included in our original guidance. Site level AISC was twelve forty six per ounce in Q2 and $10.53 per ounce for the first half.

All in sustaining cost was $13.55 per ounce in Q2 and $11.70 per ounce for the first half. On an adjusted basis excluding 11,000,000 of one time sustaining capital expenditures in Q2, adjusted all in sustaining cost was $10.81 per ounce in Q2 and $1,006 per ounce year to date. The higher sustaining capital in the quarter reflected planned tailings facility expansion, mine dewatering upgrades, and expansion of the mine fleet with three additional haul trucks and a mining shovel scheduled for commissioning in early Q3. These upgrades will increase haulage capacity by approximately 18% and support productivity gains in the second half. On a unit basis, mining costs averaged $3.25 per ton mined, processing costs were $12.72 per ton milled, and G and A averaged 7.03 per ton milled.

Fuel and reagent costs remained stable helping keep processing costs in line with plan while G and A was flat despite higher activity reflecting disciplined cost control. With progression weighed to the second half and these one time items behind us we expect per ounce costs to trend lower and remain within the updated 2025 guidance ranges. Sustaining capital in the first half totaled 24,000,000 which is 37% of our full year guidance range of 60 to 70,000,000. This keeps us on track to finish within guidance with continued spend in the second half as we continue our tailings capacity expansion and receipt of major components for the mine fleet. Capitalized waste stripping was $6,000,000 in the first half on schedule with our 23,000,000 full year plan as we increased waste stripping in the second half.

Regional exploration was 8,000,000 in the first half of the year, split 5,000,000 at Oka West, 2,000,000 at TZ, and 1,000,000 at Gurupi. Following the recent favorable court ruling Gurupi’s 2025 expiration budget has been increased to 6 to 8,000,000 from the original 2 to 4,000,000 with the expanded program beginning in the third quarter. On the development capital side, OCA West’s early works totaled 63,000,000 in the first half. This includes 33,000,000 in long term deposits for major equipment and 30,000,000 towards on the ground early works construction such as the permanent camp, the barge landing, and access road. Open commitments for OCA West now total $190,000,000 which is spread over 2025 to 2027.

Overall our capital program is progressing in line with plan with disciplined deployment of sustaining capital and continued investment in growth projects that will underpin our long term production profile of 500,000 ounces per year once Oka West in production. TZ continues to demonstrate its competitive cost position when compared to peer gold producers. For the 2025 our all in sustaining cost of $11.70 dollars per ounce was below the pure average of $15.58 dollars per ounce. Our cost leadership reflects the benefits of a modern processing plant, an efficient mine plan, disciplined cost control, and stable input costs. The operational momentum achieved is now translating directly into financial performance.

And now Julie will walk you through the numbers in more detail.

Julie Laplace, CFO, gMining Ventures: Thanks, Huipiar and good morning everyone. Our Q2 and first half results reflect the benefits of TZ reaching steady state operations. In Q2, we sold 40,082 ounces of gold at an average realized price of $3,233 per ounce or $2,992 per ounce after the stream. That drove $130,000,000 in revenue with the increase over Q1 coming from both higher realized prices and slightly higher ounces sold due to shipment timing. For the first half, revenue was $228,000,000 on sales of 75,517 ounces at an after stream realized price of $2,787 per ounce.

EBITDA in the quarter was $104,000,000 with adjusted EBITDA of $93,000,000 representing a 75% margin for the first half. Net income for Q2 was $49,000,000 or $0.21 per share, while adjusted net income was $36,000,000 or $0.16 per share. For the first half, net income totaled $73,000,000 or $0.32 per share and adjusted net income was $71,000,000 or zero three two dollars per share. Free cash flow was $60,000,000 in Q2 and $96,000,000 year to date. Strong working capital management helped lift our quarter end cash balance to $156,000,000 resulting in $49,000,000 in net cash, a milestone reached just two quarters into commercial production.

We have applied for the Sudan tax incentive, which would lower Brazil’s corporate tax rate for TZ to approximately 15.25% from 34%. The process is well advanced and we expect a decision in the second half of the year. When approved, the incentive will be retroactive to the start of 2025. Slide 14 shows how our operating performance translates into free cash flow in Q2 and year to date. Operating cash flow before changes in working capital was $46,000,000 in Q2 and $85,000,000 for the first half, supported by steady state production, strong realized gold price and a stable cost base.

A positive working capital change of $34,000,000 lift operating cash flow to $80,000,000 in the quarter. Sustaining capital totaled $19,000,000 in Q2 and $24,000,000 year to date in line with plan with major spend on tailings facility expansion, mine dewatering upgrades, all trucks, shovel and capital spare. These investments are positioning us for higher haulage capacity and lower unit costs in the second half. Free cash flow was $60,000,000 in Q2 and $96,000,000 year to date, representing a 42% margin in the first half, well ahead of expectations for our first year of operations. Non sustaining capital was $69,000,000 in the first half, including $63,000,000 from Oko West, largely driven by long lead equipment deposits for grinding mills, process plant components, power plant and mobile equipment and $8,000,000 for exploration and evaluation across the portfolio.

Quarter end cash increased by $7,000,000 in Q2 and $15,000,000 year to date, bringing the balance to $156,000,000 and net cash to $49,000,000 The takeaway is clear, disciplined execution and cost control are driving a robust financial position, allowing us to advance Oco West from internally generated cash. With that, I turn it back to Louis Pierre for project updates and 2025 catalysts and outlook.

Louis Pierre Genac, President and CEO, gMining Ventures: Thank you, Julie. OCA West stands out as one of the most attractive gold development projects in The Americas and globally with an exceptional production profile averaging 350,000 ounces per year and a low all in sustaining cost of $11.23 dollars per ounce. This large scale project offers significant leverage to the gold price with an estimated $200,000,000 increase in value for every $100 change in gold price. At a $3,000 per ounce gold price the project’s NPD is estimated at $3,200,000,000 delivering a robust 35% after tax IRR. We have long viewed Guyana as a tier one jurisdiction that fosters responsible mining development.

A perspective now reinforced by the Fraser Institute’s Mining Investment Attractiveness Index, which ranks Guyana ninth globally and first in Latin America and The Caribbean. Following the completion of the FS we seamlessly transitioned into detail engineering focused on supporting procurement activities and producing issued for construction drawings and designs to feed our early works program. With the issuance of the interim permits our goal has been to leverage this authorization to advance infrastructure construction enabling a smooth ramp up of activities once the formal construction decision is reached in the second half of this year. In the first half we spent 63,000,000 in development capital largely directed to deposits on equipment and advancing detail engineering, which is now 19% complete. We have expanded the exploration camp to support up to 350 people on-site.

The initial critical path is to deliver portions of the permanent camp facility and kitchen to enable continued ramp up of the construction workforce in the second half of the year. We expect this infrastructure to support up to 1,000 people by year end. In parallel, we have progressed the barge landing which is the key logistics infrastructure to support the project and have significantly advanced the access road which will reduce transportation distances enabling safe and timely delivery of equipment and materials. On the regulatory front, the EPA has approved the ESIA and now awaits the imminent issuance of the full permit. Once granted this will mean all major environmental authorizations are secured marking a significant milestone and a key derisking event for the project.

Financing discussions that are non dilutive to equity shareholders are advancing, which we seek to have in place before formal construction decision is made in the second half. Our development schedule for OCA West is intentionally designed to accelerate the path to first goals while maintaining tight control over execution risk. Procurements and detail engineering are advancing well and remain ahead of field execution supported by greater financial capacity and flexibility when compared to the TZ project. We have completed procurement of all long lead items securing manufacturing slots and further derisking the established project timeline. This front loaded approach positions construction to peak in 2026 and 2027 with commissioning and first gold targeted in the ’27 followed by commercial production in 2028.

We are very pleased with the rapid progress being made to unlock the value of our OCO West project, which is one of the largest gold development projects globally under construction. Our strategy is straightforward. Disciplined execution of the Yoko West project to achieve 500,000 ounces of production in 2028. The company continues to be focused on unlocking value through its exploration program. Group B is advancing it as an exciting future growth option within our portfolio.

The recent lifting of a long standing injunction has opened the door for a fresh start, allowing us to pursue exploration drilling permits and restart activities in earnest. The project hosts substantial open pit resources across the three main deposits totaling 1,800,000 ounces of indicated resources and 700,000 ounces of inferred resources. Historical and recent exploration work has defined a 55 kilometer golden soil anomaly along the 80 kilometer long Chagatudu Corridor with values reaching up to 1.5 grams per ton highlighting its district scale potential. In Q2 trenching and auger drilling confirmed the continuity of non mineralization north of Chegatudu. These results are now informing target definition approximately two kilometers further north where we plan to commence the first drill program since acquiring the project at the 2024.

To accelerate both near resource and regional opportunities we’ve increased the 2025 exploration budget by 4,000,000. Our objective is to grow the resource base and evaluate the broader potential of this highly prospective project over the next several years while we simultaneously advance the development of Voca West. Speaking to our catalysts and outlook, we continue to execute steadily across operations, development, and exploration. In the first half of the year we delivered several important milestones. We published the updated Gurupi NI 40 three-one 101 resource in February.

We began early works construction at Elko West in March. We released the Elko West feasibility study in April. In June we achieved nameplate capacity at TZ with recoveries performing as planned. And in July we published our 2024 ESG report highlighting our progress on safety, community engagement, and environmental stewardship. As we look ahead to the remainder of the year, our priorities are clear.

At TZ, we will focus on maintaining safe, steady state operations while continuing to meet our mining processing and cost guidance. At Elko West we will work toward a construction decision in the second half with early works and roughly $190,000,000 in long lead item procurement already committed allowing us to move directly into full construction once the decision is made. At Gurupi, we will launch the first drill program since acquiring the project. Safety remains our top priority, and we continue to strengthen our health and safety programs, in particular at OCA West, which will see a significant increase in workforce. With a clear set of operational development exploration and ESG deliverables ahead of us the team is fully aligned to deliver and we thank them for their hard work towards delivering to this plan.

With that I’ll turn the call back to moderator to begin the Q and A.

Conference Operator: As a reminder to ask a question in the q and a, press star plus one on your telephone keypad. Just one moment while we compile the roster. Your first question comes from the line of Mike Curran from Beacon Securities. Your line is live.

Mike Curran, Analyst, Beacon Securities: Good morning, ladies and gentlemen. I think operating results that we saw last night were definitely in line with what I was looking for. Think where I got kind of off track was the tax rate. And I guess we heard a little bit of the reason is that you’ve applied for the lower tax rate, and that won’t kick in until it’s approved and then it’ll be retrospective, I guess, or retroactive. I can see that partially.

I guess the other issue on the tax is that obviously only the second quarter of operating results for TZ. And so I thought there’d be a significant component of deferred taxes for the first few years. Is that not the case? Can you sort of clarify maybe what the tax rate will be and if there will be much deferred taxes in future quarters?

Julie Laplace, CFO, gMining Ventures: No, we don’t expect having large deferred taxes. What is around the taxes is really to focus to get this SUDEM incentive. This will have a large and very significant impact on our earnings per share.

Mike Curran, Analyst, Beacon Securities: Great. So like you said, you’ve applied for that. It might kick in later this year, but it will be retroactive for full year 2025. Is that correct?

Julie Laplace, CFO, gMining Ventures: Exactly. Correct.

Mike Curran, Analyst, Beacon Securities: Very good. Thank you very much.

Julie Laplace, CFO, gMining Ventures: Welcome.

Conference Operator: Your next question comes from the line of Fahad Tariq from Jefferies. Your line is live.

Fahad Tariq, Analyst, Jefferies: Hi. Thanks for taking my question. Can you give some color on the percentage of nameplate that you’ve achieved in July

Louis Pierre Genac, President and CEO, gMining Ventures: at TDS? Yeah, what we reported this quarter is 96% of nameplate for May and June and we’ve continued that trend in July so far as well.

Fahad Tariq, Analyst, Jefferies: Okay, and then in terms of the second half on recoveries, is there room for improvement in the recoveries or is this kind of what we should expect around 90%?

Louis Pierre Genac, President and CEO, gMining Ventures: What we’ve been seeing so far is slightly above 90% and this is related to grade, head grade. So as the head grade goes up we’re getting a slightly better recovery. So we could see it between 9092% in the second half.

Fahad Tariq, Analyst, Jefferies: Okay and just last question on just going back to taxes. The Sudan tax incentive that you’ve applied for, just to clarify, would be on the corporate level for income taxes, but that would not affect at the site level the production tax grounds. Is that correct?

Julie Laplace, CFO, gMining Ventures: So just to clarify, this is really an incentive at Brazil level. So it’s really the statutory rate in Brazil that will be reduced by using this incentive.

Louis Pierre Genac, President and CEO, gMining Ventures: Yes, the production tax per se doesn’t get affected by this.

Fahad Tariq, Analyst, Jefferies: Okay, thank you.

Conference Operator: Your next question comes from the line of Michael Ciperco from RBC Capital Markets. Your line is live.

Michael Ciperco, Analyst, RBC Capital Markets: Yeah. Thanks very much, and and thanks for taking my question. Switching gears to Occo West, you you you gave us a bit of an outline. I’m wondering if you can maybe expand on that a little bit in terms of milestones over the next six months and how we should look at spending in the context of guidance? Or maybe in other words, is the 200,000,000 to $240,000,000 in CapEx dependent now on the specific timing of the permits on the construction decision?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah, not so much based on timing of the permits. It’s more just delivery of equipment and related to that timing. But what we’ve seen is obviously we’re ramping up activities on-site. So the spend level is increasing of month to month here. But yeah, that’s really the case.

So yeah, we’re still guiding about the same range for OCO for this year. And yeah like we mentioned there’s a 190,000,000 of open commitments. So that obviously is phased over 2025 to the end of the project. So it’s not all coming this year obviously.

Michael Ciperco, Analyst, RBC Capital Markets: Right. Okay. So we shouldn’t necessarily be expecting a significant increase once the final permits come in. It’s more how these items come up and you pay for them as the project ramps up. Is that fair to say?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah. That’s fair to say. So, yeah.

Michael Ciperco, Analyst, RBC Capital Markets: Okay. And then in terms of Gurupi, I mean, I understand it’s pretty early days and you’ve got to get drilling. But how do you think about development and advancement there conjunction with Arco West construction over the next couple of years? Are you comfortable taking on two projects at the same time, more than two? How are you thinking about growth in that context?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah, in the context of Gurupi I mean obviously the objective is to start drilling again which we expect to do in September. So what we see there is really advancing the project with drilling and essentially redoing permitting and studies while we’re constructing Boca West. So that’s the objective. So that’s not a lot of call it spend compared to building a project. And the objective there is to see how we can advance that on a accelerated basis to make it a viable you know construction ready project once Soka West is delivered.

So you know we’re excited. We feel that we’ve turned around the project quite significantly since taking control of it at the 2024. And yeah we definitely are excited by starting the drilling programs again just given the exciting targets that we have in front of us.

Michael Ciperco, Analyst, RBC Capital Markets: Okay, great. Maybe a broader question. I mean obviously you’ve been involved in the M and A market here for the last couple of years. But I’m not sure we’ve really heard your view on things maybe since the Occo West transaction or the transaction that netted you Occo Can you comment maybe on how you’ve seen things change in the market? Valuations have clearly come up on the developer side.

Can you comment on maybe where you’re prioritizing in terms of spending your time looking at other projects if you’re doing that at the moment?

Louis Pierre Genac, President and CEO, gMining Ventures: Yes, I mean obviously we have a lot of spend in front of us with OCA West and a lot of focus on that. You know, like it was the case for rupee, we’re always looking at, M and A opportunities that fit within our our criteria. But, yeah, I think you’ve seen a lot of you’ve seen valuations come up with the consensus price kind of rising every month. I think the M and A side is looking a little more expensive at this point.

Michael Ciperco, Analyst, RBC Capital Markets: Okay, great. No, fair enough. Thanks very much. I appreciate the time.

Louis Pierre Genac, President and CEO, gMining Ventures: Thanks.

Conference Operator: Your next question comes from the line of Anita Soni from CIBC. Your line is live.

Anita Soni, Analyst, CIBC: Hi. Good morning. Thanks for taking my questions. Just the first one on the contingent payment, the deferred consideration that needs to be paid to Eldorado. I think it’s the one year anniversary that you pay it on.

I think it was around $60,000,000 And if I’m not incorrect, you had also entered into an option to defer about half of it. So are you planning to pay the 60,000,000 on September 3 or just 30,000,000 of it and use the deferral?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah, we’re planning to pay the full 60,000,000 in September. Just given the additional cost that comes with deferring it is not in our favor at that point.

Anita Soni, Analyst, CIBC: Okay. And then the just in terms of visibility and in terms of the outlook for 2026, I understand there’s obviously there’s been some different from the technical report, in terms of the timeline startup, but if we’re thinking about following the technical report, should we be expecting sort of grade to fall off in the back half of 2026 or you know what should we be thinking about in terms of the mine sequencing and how that’s changed as you started up this asset?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah I would say 2026 and essentially the first five years of the mine life are pretty consistent in terms of gold production. So yeah, we expect solid five years and then at that point we do have a few periods where we end up drawing on some stockpiles to complement direct feed from the pit. But yeah that will be subject to continued optimization and additional exploration that we’re doing around the pit area. So yeah, essentially we have a very solid five years in front of us. Know in the range of the 200,000 ounces.

Anita Soni, Analyst, CIBC: Okay, just the original technical report had some peaks and valleys and I guess you must have smoothed out year three, where it was supposed to be about a lower grade year and then year five was a very high grade year. So basically just looking for a smoother profile from the technical part then.

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah.

Anita Soni, Analyst, CIBC: Okay. And then just in terms of your financing package that you were going to be announcing, I think later this year, can you give us an idea of the proportions of where you think you’ll be getting the funds to fund Oak West?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah, so essentially we have some equipment financing that’s gonna be available to us with the equipment that we purchased. So there’s about 45,000,000 that will be an initial tranche on that. And we’re in discussions on a debt financing package right now that will complement or you know complete our financing package for Elko West. So that’s in the works. We’re in discussions and due diligence phases

Anita Soni, Analyst, CIBC: Okay. Think that’s it for my questions. Thanks.

Louis Pierre Genac, President and CEO, gMining Ventures: Thanks.

Conference Operator: Your next question comes from the line of Andrew Mikitu from National Bank Financial.

Andrew Mikitu, Analyst, BMO: Well, I haven’t changed banks. Still at BMO. LP, lots of great questions have even been asked. But can we just come back to the all in sustaining costs and the sustaining capital? I think the profile of sustaining capital that went into Q2 was slightly maybe smooth is the correct word from what was discussed on the Q1 conference call.

And there’s $40 something million left in the second half of the year. Is that kind of evenly spread out now or is there still some lumpiness to it?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah, that’s a good question. Obviously a lot of the sustaining capital items are sometimes related to delivery of things from suppliers. So that’s sometimes where we don’t have full control over that. So the piece there is essentially major components for the mine fleet. We expect to be receiving that spread out over Q3 and Q4.

And what you maybe have noticed in our tables is obviously the capitalized waste stripping is know at 6,000,000 for the first half below the 23,000,000 guided for the year. So we do expect that to go up kind of evenly spaced over Q3 and Q4 as we increase our mining rate and mine more waste. But if anything I think at this point it’s actually going to be a little more weighed towards Q4 based on our updated forecast.

Andrew Mikitu, Analyst, BMO: And I guess those are related. You need that extra mine fleet and supplies and commissioning of that fleet to ramp up that pre strip?

Louis Pierre Genac, President and CEO, gMining Ventures: Yes, correct. So we received the equipment at the end of Q2. So it’s been commissioned and it’s going to be put into full production in Q3. That’s what’s ramping up our mining rates and allowing us to mine more waste at this point.

Andrew Mikitu, Analyst, BMO: Okay, well that’s all I’ve got for questions. Maybe congratulations or definitely in order to your talented team that made all this work and is now running this mine very well. Everyone looks forward to great news and updates from OCO.

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah. Thank you, Andrew.

Conference Operator: Your next question comes from the line of Don McLean from Paradigm Capital. Your line is live. John McQueen, your line is live. Seems they are unavailable. Moving on to Allison Carson from Desjardins.

Your line is live.

Allison Carson, Analyst, Desjardins: Great. Thanks. Good morning, and thank you for taking my question. It’s just a quick one, and sorry, one more follow-up on the taxes, and apologies if I missed this. I believe there’s a line in the MD and A that said part of the increase was the non Brazilian assets that drove the higher tax rate for the quarter.

Is this correct? And is that expected to continue for the rest of the year?

Julie Laplace, CFO, gMining Ventures: Maybe can you just repeat your question please?

Allison Carson, Analyst, Desjardins: Sure. I believe there was a line in the MD and A that said part of the higher tax rate was from the non Brazilian assets. Is that correct? And if so, is that expected to continue for the rest of the year?

Julie Laplace, CFO, gMining Ventures: Sorry, I will have to check the sentence you referred to in the MD and A. But just to clarify, our tax rate is entirely our tax income payable is entirely related to our asset in Brazil. Okay. This is the only jurisdiction in the world that we have income tax expense.

Allison Carson, Analyst, Desjardins: Okay.

Louis Pierre Genac, President and CEO, gMining Ventures: So yeah, I think the point is our costs in Canada don’t benefit from having income in Canada so that it essentially increases our corporate effective tax rate.

Allison Carson, Analyst, Desjardins: Okay so as you get the incentive just the tax rate overall should just decrease then?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah driven in Brazil which will decrease yeah.

Allison Carson, Analyst, Desjardins: Okay thank you.

Conference Operator: Your next question comes from the line of Don McLean from Paradigm Capital Inc. Your line is live.

Don McLean, Analyst, Paradigm Capital: Thank you. Hopefully, you can hear me this time. Sorry about the poor reception. Just a congratulations on the Gurupi. That’s very impressive how quickly you turned that situation around.

Two questions. One is, can we get an update on the grade and tons reconciliation at TZ? And then second, maybe how the exploration at, Aqua West, how that’s coming along, if you’ve had any recent joy in some of the things you’re seeing relative to the model that was used in the feasibility study.

Louis Pierre Genac, President and CEO, gMining Ventures: Sure. So yeah in terms of grade reconciliation you know we’ve been reconciling quite well our long term reserve model. You know we’ve been stockpiling obviously most of the low grade and you’ve seen our stockpile numbers go up month to month. So that’s obviously part of our mining strategy at this point. So obviously we’re feeding higher grades to the plant and we’re able to feed an average of 145 grams per ton in Q2 and we look at just June alone we had about a 1.6 grade to the plant.

So that’s obviously leading into the fact that we’re accessing some of the higher grade zones at depth and is the reason why our gold production is higher in the second half. Yeah, so it’s a nice model. It’s a bulk deposit so a lot less risk when it comes to variances between our expectations and modeling in actual results. Yeah just on exploration obviously we’ve continued exploring at OCA West which a bit of a challenge at this point given that most of our team on-site is dedicated to construction. But yeah we’ve been drilling and we’ve been drilling to the north and to the south of the main pit and we’ve been intersecting additional you know intervals of mineralization that are outside the feasibility study.

So that’s something that we’ll look to update the market on in the coming weeks towards late August. But yeah, we do see additional splays coming off the main shear in the main deposit in Oka West. So what that does is really bring in additional mineralization into the pit that’s been modeled as waste in the feasibility study. So yeah, I think the conclusion is we see continued upside in growth in the resource.

Don McLean, Analyst, Paradigm Capital: Terrific, that sounds great. Just maybe one last thing on the mill at TZ. When you look at the horsepower draw relative to the horsepower capacity, We often see a mill as it reaches steady state actually surpass rated capacity because there’s some extra horsepower there. Do you think that’s the case with TZ or is it topping out at certain critical areas?

Louis Pierre Genac, President and CEO, gMining Ventures: What we’ve seen actually is just really kind of continued throughput. So obviously that’ll be leveling out but yeah we see the ability to continue pushing the plant throughput. And it’ll have to do with some of the fine tuning between our discharge grades on the SAG and getting additional throughput on that front. But one thing that we’ve noticed is with these expert control systems that we put in place we’re able to really maximize the full capacity of the equipment. So that’s been playing, having a great effect on our throughput already.

Conference Operator: Perfect.

Don McLean, Analyst, Paradigm Capital: Well congratulations again. Thank you.

Louis Pierre Genac, President and CEO, gMining Ventures: Thank you, Dom.

Conference Operator: We have our final question from the web portal, and it is, following the installation of the steel liners in April, you achieved a 103% of nameplate throughput in May and 96% in both May and June. Could you provide an update on how throughput trended in July and what you’ve observed in August so far?

Louis Pierre Genac, President and CEO, gMining Ventures: Yeah. So, basically, we’re we’re continuing on the trend of what we’ve accomplished since changing the the liners in in April. So, yeah, that’s looking to be continuing.

Conference Operator: There are no further questions in the queue. So that concludes GMIM’s Q2 twenty five conference call. Thank you again for joining us. Stay connected via our email list and social media updates. Enjoy the rest of your day.

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