Third Quarter 2026 Operating and Financial Results Conference Call - ERO COPPER CORP

Thank you for standing by. This is the conference operator. Welcome to the AeroCopper 3rd Quarter 2026 Operating and Financial Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star 10. I would now like to turn the conference over to Farouk Ahmed, VP, Investor Relations. Please go ahead. Thank you, operator. Good morning, and welcome to AeroCopper's third quarter earnings call. Our operating and financial results were released yesterday afternoon and are available on our website, along with our financial statements and MD&A for the three and nine months ended September 30th, 2026. A corresponding earnings presentation can be downloaded directly from the webcast and is also available in the presentation section of our website. Joining me on the call today are Marco DiFilippo, President and Chief Executive Officer, Wayne Dreyer, Executive Vice President and chief financial officer, Jocelyn Batista, Executive vice president and chief operating officer, and Courtney Lin, Executive Vise President, External Affairs and Strategy. Before we begin, I'd like to remind everyone that today's discussion will include forward-looking statements which involve risks and uncertainties that may cause actual results to differ materially. For a detailed discussion of these risks and their potential impact on our business, please refer to our most recent annual information forum available on our website as well as on CDAR and NBER. Unless otherwise noted, all figures discussed today are in U.S. dollars. With that, I'll now turn the call over to Marco DiFilippo. Thank you, Farouk, and good morning, everyone. As always, we will keep today's prepared remarks short to allow sufficient time for Q&A. Before turning to the quarter, I do want to take a step back for a moment. Despite recent market volatility and lingering questions about the pace of AI infrastructure spending, the underlying value of high-quality copper production, strong free cash flow generation, and a tangible organic growth pipeline has never been more clear. This brings me to what I hope will be the four key takeaways from today's call. First, our operational performance is translating directly into cash generation and balance sheet strength. This year, we have applied 97 cents of every available dollar towards debt reduction. Our commitment to our balance sheet has resulted in a net debt reduction of approximately $100 million in Q3 alone. For Arrow, this means greater flexibility to continue advancing our organic growth projects, including for us. Second, our cash operating margins remain strong. Cost savings from our One Arrow initiative and a successful foreign exchange head strategy are working in tandem, as intended, to offset the impact of inflationary pressures we are seeing at Arrow and throughout the mining sector. Third, our copper business continues to perform well, and we remain well positioned to achieve our full-year copper production guidance. Fourth, the Gold Concentrate Program we launched at Javanchina in late 2025 has provided us with real operational and commercial flexibility this year. We now have assays for the in-process material we expect to sell over the next eight weeks, and based on those results, we expect a combined 75,000 to 80,000 ounces of gold from Javachina this year, a record for the company by any measure. With those takeaways in mind, let me now turn to the quarter. As you have seen, we delivered record financial performance this quarter, and year-to-date, establishing new high-water marks across all key financial metrics. Our results reflect progress. In particular, I would point to the sequential quarterly increases in plant throughput at our copper operations. Both Cariba and Tucumã are set to achieve record annual throughput volumes this year. Operating momentum across our business, paired with metal-priced tailwinds, contributed to record cash flow from operations of approximately $191 million and adjusted EBITDA of over $200 million, both up nearly 40% quarter-on-quarter and an impressive 260% since our third quarter of last year. On a year-to-date basis, we've generated over $420 million in cash flow operations and $470 million in adjusted EBITA, up approximately 60% and 110% respectively compared to this time last year. Against this backdrop of improving operational performance, it should be no surprise that this was our seventh consecutive quarter of accelerated deleveraging. When I look back and compare our vastly improved net debt leverage ratio of 0.5 times in Q3 to our peak of 2.6 times at the start of 2025, I cannot help but be proud our leadership team's commitment and focus to this objective turning to our operations themselves our copper business produced 18 300 tons of copper during the third quarter at a consolidated c1 cash cost of just over two dollars and fifty cents per pound throughput volumes at kariba and chukamal remain strong during q3 increasing quarter on quarter by eight and fourteen percent respectively. We continue to expect Q4 to be the strongest operating order of the year and are on track to achieve full-year copper production guidance. On the cost side of the equation, since the onset of the US-Iran conflict, we have pointed to a potential 10 cent per pound impact on a reported cash cost as a result of the inflationary pressures we're seeing and the flow through of a stronger BRL on our functional currency. We have now reflected that in our consolidated C-1 cash cost guidance for the year. Offsetting this from a cash margin perspective, through the first nine months of the year, we've generated realized gains of $30 million from our foreign exchange hedge book. This protection is in place to protect our business against exactly the type of environment we have operated in during the first five months of this year. Wayne will speak to how we as management view this margin protection in the context of our adjusted C1 cash costs in more detail. At Javashina, while line performance was just short of 8,000 ounces and objectively below our expectations in Q3, total gold produced and recovered grew by 23% quarter-on-quarter to a record of approximately 25,000 oz. Increasing production from historic concentrates was a key operational focus for us this year given the slow start to mining operations in the first half, and at sub $750 per ounce all in sustaining costs it is perhaps no surprise why we prioritized the sale of this material. The investments we made during the first-half of the year to enhance our drying capacity of historic concentrates are clearly paying off as we enter the second half of the year. As a result, we expect total gold from Javacina of between 75 and 80,000 ounces this year. Transitioning into our growth pipeline, at the furnace project we completed the 45,000 meter phase 3 drill program in August, completing the entirety of the exploration component of the earning agreement with Valley Based Metals more than two years ahead of schedule. Drilling results have consistently demonstrated high-grade continuity within the deposit and extensions at depth and at long-strength. We expect to provide the full results of the Phase 3 program prior to year-end. In parallel, we are moving forward across all technical work streams to support the project's pre-feasibility study, and we expect to publish this in 2027. The work we have done and are continuing to do to strengthen our operating performance and improve operating margins through our One Arrow program are translating into strong free cash flow generation and record financial performance. With that, I'll turn the call over to Jelson. Thank you, Marko, and good morning, everyone. As Marco outlined, we had strong metal production in Q3 and are expecting improved performance across all three operations in Q4. I will provide some additional detail on the underlying operation drivers and our expectations for the remaining of the year. At Caraíba, copper production totaled 9,387 tons during the quarter at C-1 cash costs of $2.89 per pound produced. Production increased by 12% over the previous quarter, driven by higher plant throughput. Grades and recovers. Costs in the quarter were impacted by accelerated waste-tripping costs at Sewer B Open Pit and elevator road fleet maintenance costs. Both of these cost centers were heavily influenced by the elevated diesel price environment in Q3. Looking ahead, we expect stronger production at Caraiba in Q4, driven by higher mine and process grades, coming from deeper high-grade benches at Sudobi, combined with contributions from the Pilar underground mine, positioning us well to achieve full-year production guidance. C1 cash costs are expected to decline in Q4 with increased production volumes. At Tucuman, copper production totaled 8,958 tons and C1 cash costs of $2.12 per pound produced. Production and costs were similar to the prior quarter as a planned decrease in process grades was offset by a 14% increase in planned throughput. Recoveries were impacted in Q3 due to operational adjustments that were required coming out of a mill liner replacement and maintenance shutdown. This was a temporary impact, which Marco spoke to on our Q2 conference call. Looking to Q4, we expect production to benefit from higher throughput rates and increased metallurgical recoveries. C1 cash costs are expected to decline sequentially, supporting our mundane, full-year production and cost guidance for Ducouman. The three new filters we are installing were delivered to site in late Q3 and will remain on schedule to finalize their installation and commissioning prior to year end. At Chavanchina, mine gold production totaled 7,844 ounces at C1 cash costs of $1,892 per ounce produced in Q3. Mine and process grades increased as expected. However, as Marco noted, operational delays in accessing key high-grade stoves resulted in lower grades processed during the quarter. Looking ahead, we expect mined and processed tonnage and grades to improve in the fourth quarter. This outlook is supported by all-time record development levels achieved over the past few months. Gold recovered from historic concentrate stockpiles increased by 47 percent from the previous quarter to 17,414 ounces at C1 cash costs of $621 per ounce, as the operations benefited from the mobile filter press and inducer dryer commission at the end of June. Looking to Order 4, further increases in throughput volumes along with an improved grade profile we expect will translate directly into lower c1 cash costs we expect start concentrate volumes to remain robust based on the volume shift and in process so far through october as markup nation i will now turn the call over to n to out through our financial results thank you jason good morning all our third quarter financial results reflected a 10% and 47% quarter-on-quarter increase in copper and gold sales volumes, respectively, coupled with strong metal prices. These factors together drove quarterly revenue to $348 million, up 22% from the second quarter. As Makar noted, we achieved record quarterly cash flow from operations, which increased to $191 million, while adjusted EBITDA increased to a record of $201 million, both measures up 39% sequentially. The strong financial performance allowed us to accelerate debt production with repayments of $70 million in the quarter against our revolving credit facility, bringing total repayments in 2026 to $105 million. As a result, net debt declined by $99 million during Q3 to approximately $353 million, while the last 12-month adjusted EBITDA increased to $657 million. Together, these factors reduced our net debt leverage ratio to approximately 0.5 times. Our liquidity position also improved during the period, increasing $82 million to $264 million, including $114 million of cash and cash equivalents and $150 million of availability under our revolver. Turning to foreign exchange, a stronger real continued to adversely impact our reported operating costs and capital expenditures during the quarter. However, on a cash basis, our hedge program worked as intended, generating $10 million of realized gains in the quarter and bringing the total foreign exchange gains through the first three quarters to $30 million. While these gains mitigate the cash impact of the stronger real, they are not included in our reported C1 cash costs. To better capture how we think about our cash margins at ERO, if we were to apply the year-to-date $30 billion of realized gains to the operations on a pro-rata basis. This would translate to a 15 cent per pound reduction in consolidated copper C1 cash costs and a $50 per ounce reduction to Chaventina C1 cash costs over the full year. This is illustrated on slide 17 of the webcast presentation. With that, I'll pass the call back to Marco for some closing remarks. Thank you, Wayne. Before we open the line for questions, let me bring everyone back to the four points I opened with. First, we are turning operating performance into cash generation. We've put 97 cents of every dollar available towards debt reduction this year, including approximately $100 million of net debt reduction in Q3. Second, our copper business is performing well and we remain on track to meet our full year production guidance. Third, Third, the Gold Concentrate Program at Jevonshina has us on track for approximately 75,000 to 80,000 ounces of gold this year, a record for the company. Fourth, our One Arrow Program and our BRL hedge strategy are working in tandem and as intended to maintain strong cash operating margins despite the inflationary pressures we are seeing across the sector. Finally, looking a little bit further ahead to Furnas Milestones, we remain on track to deliver the pre-feasibility study in 2027. Thank you for joining us this morning. Operator, we are ready for questions. Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two. The first question comes from Fahad Tariq with Jeff Bees. Please go ahead. Hi, thanks for taking my questions. With the leverage ratio and that debt to EBITDA now at 0.5 times, can you talk a little bit about the shareholder return program when we should be expecting some sort of announcement and just how the management team is thinking about shareholder returns? Thanks. Yeah, thanks to the question. Look, I think I covered it fairly extensively on our capital markets there in September in Sao Paulo. We're well on that journey. We're below the leverage ratio where we wanted to be. We're on track to repay the revolver, and certainly with the current price environment, the expectation is that we'll be repaid during Q4. We have a very active discussion with our board around what that shareholder return framework will look like. And, you know, I think you just have to see when we're ready to put that out to the market. Okay. And then just on the Brazilian REI, I mean, it's weakened pretty substantially over the past couple of weeks since the election. How should we be thinking about the effect of that in the fourth quarter as it pertains to the hedges and the floor price in the second half, along with the operating cost impact? Like, does it net out? Yeah, I'll take that question as well. Obviously we have already in place our HBOOK for 2026, and so we're fairly well covered for Q4, but obviously it doesn't cover the entire amount of OPEX and CAPEX, so certainly some of these tailwinds we've seen following the election will help, but I think if we look through to 2027, we're very—we actively manage our book in a progress manner. We have taken advantage of some of this weakening to put in place some measures for 2027. So we're starting to build our book for 2037 as well. Yeah, maybe just to answer that question, you know, as we think about Q4, I think it's It's important to note that the way that our head strategy works is, you know, we protect the floor, in this case for Q4, of 5.54. So that's our protection level. We participate in the exposure of the BRL all the way up to our ceiling, which is 6.42, and that's shown on slide 8 of the webcast presentation. So when you think about where we were in, you, know, the first nine months of the year versus where we are today. Should we see continued weakness in the Bureau? We will participate in that up until our cap of 6.42. Yeah, got it, thank you. The next question comes from Aris Rockadel with Scotiabank, please go ahead. Hi, good morning. Great to see the cash flow generation. I had a couple questions on Gervantina. First of all, I mean, the grade was quite low in Q3. I'm wondering if you've now seen the turn in Q4 in terms of a grade that's, say, closer to reserve grade. Yeah, look, I'll jump in, Horst, and then Jelson can comment on this. You know, we expect Q4 to be the strongest quarter of the year. I think some of the key high-grade stopes, as Jelson pointed to in the conference call, that we have plans coming in late Q3. We're shifted a bit, so those are coming in in Q4. I mean, I think, Lejeune, it's important to keep in mind that, you know, when we think about reserve grid, you Know, that's an average over left mine. We obviously, every month, every quarter, we mine stoves that are, you know, well above that range in some instances, as we saw the last couple years, and then some that are lower. So it's obviously a blended grid when we thing about reserves. but what i can tell you is that uh you know looking at results here we we do see uh we do see a great climbing as expected uh it's you know well supported by uh our info drill program and channel sampling that we have uh for q4 so we're feeling pretty good about the steps that we're into uh now and get a mining q4 i don't know just if you've got anything out there no thanks sorry for the car i think mark mentioned well there about the um the stoves that uh we got in and into the score and then back on track so i have no further yeah i think i think oris you know we just mentioned this too geometry a real real priority for us you know coming out of the first half obviously we're behind where we hope to be uh in terms of development of mind performance i think the uh a good leading indicator for us as jelson mentioned there who achieved record development the last three months that are all-time historic record development levels. So, you know, we're certainly not out of the woods yet. I think it's too early to declare victory, but based on, you Know, achieving the development that we, you know, being ahead of development, being in some high-grade stoves and seeing that flow through, I think is a strong indicator for where we think Q4 is heading. thank you for that and just as a follow-up um you're guiding to uh i believe 15 000 ounces of gold from the concentrate sales in q4 why why are you thinking it's going to be lower than q3 is that are you expecting sort of a pickup in the rainy season late in the year or i'm just wondering if that's a conservative estimate or is there something constraining volume here in q3 Yeah, look, obviously, you know, we've made big investments in the dry infrastructure on site. You know, and we saw that flow through Q3. That did coincide with a seasonal dry period, which obviously helps that dryer perform well. I'd say the reality for us is that our approach in the concentrates has been consistent. then, you know, we can only provide forward-looking information for the information that we have available on hand. And what we have today in dried inventory or drying inventory is that 9,000 ounces. Obviously, we expect to add more to that, but the 15,000 is what wehave assayed and available today. And I would say that includes also over 6,000 oz that were invoiced in October, right? So I think that's an important thing to keep in mind as you think about Q4. Okay, thank you for that. Finally, if I could just switch gears for a second, can you give us an update on the shaft sinking project in Kariba in terms of current expectation for completion and how much CapEx is remaining on the project? Yeah, sure. I'll jump in here, and Jelson can pick up if I miss anything there. So, you know, as of right now, we're about 1,250 meters complete. You know, that means that we've got about 300 meters to go, if you follow where that progress has been, as we talked about on our Capital Markets Day. You know. We still expect to complete that shaft in Q1, as мы outlined in September. On our Capital Market Day, that's an important metric for us. As I said, you know, when we think about the timing and completion of the shaft, to go back to some of the commentary from Q2, I want to remind everyone that the last shaft that was built in Pilar was in 1986, about 40 years ago. So we're certainly not trying to solve for, you Know, a specific month next year. This investment will support the operation for, You know, hopefully decades to come. On the CapEx side, yeah, look, we've – it's a $370 million investment at the end of Q3, so about $300 million, so $70 million to go. We expect to spend a good chunk of that here in Q4 with some – with balance through next year. Thanks for that. The next question comes from Guilherme Rosito with Bank of America. Please go ahead. All right. Thank you for taking my questions. Good morning, everyone. So, I have two on my side. Maybe if you could begin with an update on Tucumã. How are the filters coming along? And what are you expecting for – maybe if you can give us some color for 2027 versus what you guys are probably producing 2026? Or what are your expectations for the future? how are the filters coming along, and what are you expecting for maybe if you can give us some color for 2027 versus what you guys are probably producing in 2026, or how 4Q is coming along. And then my second is also on Chavantina, and I know you guys commented on that a bit, but if we look at the previous three-year production outlook, it implied 50,000 to 60,000 ounces in Chavantida, and with the performance we had year-to-date, especially in terms of It seems a bit more challenging than it would have seemed in the earlier year, right? So my question is, how are you guys seeing about the three-year production outlook? Is there any chance you guys think it could be revised lower? Just to hear your thoughts on that. Thank you. Thank you for your question there, Shelson here. In Tucumán, we've got all the filters on site. arrived in the last quarter, late last quarter. Everything is on track for completion by the year end, and we expect, as we mentioned before, to come out about 2026 at 4 million tons per annum as we planned before. So the filters are on track, and the team is working there to make sure that we can complete them on time. Yeah, and I think just maybe touching that point and joseph and i speak about this a lot and if you look at the performance you know quarter query going out the additional infiltration capacity huge progress has been made there um you know reaching that uh above 800 000 tons of quarter um so we're you know we're all on our way and as jose said expect to exit the year there at that uh that formula 10 a year rate which is which is where we expect to be for 27. uh certainly to the the question on is she having china And I would maybe point you in a slightly different direction there. I think if you look at our, you know, even our adjusted guidance, obviously, which came down versus our expectations in the early part of the year, that really reflects a delay in ventilation cooling development. If you look a Q4 in isolation, I think that's a better representation of what that asset is capable of doing with, obviously the transition that happened this year. So, you know, looking at Q4 and multiplying by four, I think it's probably a better representation than looking at the full year 26, especially the first nine months, and getting to that range. So, I would say that, you Know, when we think about Javanchina, I mean, Q4 is more representative of what we think we can do, both in terms of throughput volumes, line performance throughput volumes and also process growth. All right, thank you. The next question comes from Mateus Moreira with Brandesco BBI. Please go ahead. Yeah, thank-you. Good morning, everyone. Thanks for taking my questions. Two questions on my side. First, at Caraiba you mentioned that we should see production improving in the the last quarter driven by higher grades i'm just wondering how should we expect these grades to extend into 2027 and could you help us understand what will be a reasonable production mix between pilar vermelos and surbin for next year and then my second question on four months uh i mean you've completed the phase three drilling program during the quarter which is you know roughly two years ahead of the original schedule does that give you room to bring forward an eventual fid and what are the key milestones you still need to work through? And then maybe just one more on the PFS, which you expect to complete in 2027. Can you give us a sense of whether that's more likely to be early or late in the year? Those are my two questions. Thank you. Yeah, perfect. A lot to unpack there. So if I missed something, I apologize. Just ask it again. But starting with the first question on Cariba, yeah, look, we've been, I think, consistent with the main contributor to higher grades this year from Cariba as a mix of these lower levels, these lower benches in Serbim. We've been mining at Serbib for the last couple of years. It's really, and when you look at the investor the last couple of years, the strength of that investment is really supported by these lower benches, right? They're about 1% copper versus where we were a few years ago. So it's a very high-grade open-pit operation, at least the lower levels of serving. We do expect to see some of that into Q4 with a bit of a delay there. In Q3, we expect some of the material to roll forward into Q1 of next year. But we provided in our capital markets today, we provided more query about the relative mix and how we see Serbian transitioning into N8 for next year and over the next couple of years. So I would point you to the capital markets day for that allocation on the mix of relative sources. But we do see this transition in 27 from Serbian into N7. And, again, you know, a little bit of a grade profile difference there, particularly because the lower benches that we're mining now are quite high grade from an open pit perspective at Karevo. For NOS, just to touch on the couple of questions that you asked there, so one being two years ahead of schedule. Look, I think there's very important milestones. The one that we were, you now, able to control directly is the effort put on drilling. We think that with the quality of project that Furnas is, getting well ahead on drilling is one of the best places to put growth capital towards. And so we've obviously done that, right, two years ahead of schedule, as you pointed to. In terms of pulling forward FID, we still have a couple of levels of engineering to go, including the PFS here next year, and then obviously a feasibility study. I would say let's get through the pre-feasibility study and the work that we're doing now and then have a discussion sometime next year about that. The reality, though, is, as said many times, we still have to go through the permitting process. We're obviously familiar with what that entails, having done that for two months quite recently. And so that's another key parallel work stream that's happening in conjunction with all the drilling and all the engineering work. So, we have a couple of key milestones on permitting that we're advancing this year. Those are going well, as we've talked about in our capital markets day as well. And in terms of timing the pre-feasibility study, I'd say, look, yeah, we're working as fast as we can. If you follow the milestone agreement we have until September to finalize that, I would say we're, you know, we continue to work as fast as possible to get that done, but I would say September of the latest, given the timeline as outlined in the earnings agreement. Great. That's a very good call, and thank you. Thanks, Marco. The next question comes from Ricardo Monegalia with Banco Safar. Please go ahead. Hello, guys. Good morning. Thank you for taking my questions. I have two. First, just a quick follow-up, throughput rose, and that's great, but recovery fell a bit short of our estimates, so could you give us some color on what drove it, and maybe how confident are you on reaching that high 80s or low 90s level? Yeah. Perfect. So, thanks for the question. Yeah, we've spoken about this on our Q2 conference all right. We did see coming right at the end of Q2, we had a mill reline and a major maintenance period that was successfully completed. We didn't, however, see an impact on recovery coming out of that. There was operational adjustments that needed to be made largely around the variation size that impacted the recoveries for Q3. That was early in the quarter. Throughout the quarter, we did see an increase in recovery, and obviously that supports kind of where we think we're going to be through the balance of that year, as Justin mentioned, improving recoveries into the high-ease range. I would say that keep in mind that recoveries are a function of grade, So, there is a grade recovery curve at two per month, as with all copper flotation operations. And so, you know, we expect strong imperatives in Q4. Over time, there's obviously a relationship to grade. We've got a number of initiatives to help improve recovery as we go forward. But again, I would say that the reason we're on Q3 is really a one-off impact coming out of that maintenance period to the operational adjustments that we had to make to improve the circuit, again, with higher throughput volumes during the period as well. Thank you, Michael. Very clear. My second question on corporate G&A. G&As and the operations were fairly in line with what we expected, but corporate G&A was a bit higher and growing like 30% year over year. So I just wanted to understand what could we consider as a one-off and maybe what run rate do you think we should model for the upcoming quarters and maybe 2027? Yeah, good question. The change from Q2 to Q3, which is about $4 million, It's actually entirely related to a SAP implementation project, which is underway. So right now we are basically instituting SAP for HANA, which is a cloud-based ERP system, through the enterprise. Unfortunately, the IFRS rules under cloud- based systems don't allow us to capitalize that, much like legacy ERP systems. And so, those costs are being expensed through the implementation. And so I think you can expect to see that amount for the next two quarters, two to three quarters. We expect implementation to be done by Q2. But the run rate, certainly if you look at Q1, Q2, that is our typical run rate. The change is simply related to the SAP implementation. Right. Thanks, Wayne, and congrats on the results. Thank you. The next question comes from Stefan Eoano with ATB Cormark. Please go ahead. Yeah, thanks very much. I'm not sure if I maybe missed it earlier, but just maybe when we were down on site, I guess, a month or so ago at Sabantina, just wondering, is the outlook for the concentrate that will be still coming out of the ground, say, through the middle of next year, or is there any additional color on sort of the outlook over the coming quarters for what the gold and concentrate production might look like? We don't have an outlook beyond Q4. It's a good question. You know, I think the reality there is, as I outlined, you know, we're comfortable with the eight weeks that we have, the materials been assayed uh and is it an inventory or you know drying process now um to go beyond that obviously difficult um difficult to provide any information on given the lack of samples there as we've discussed you know a few times here i do think that um you know there is volume remaining we're obviously you know prioritizing the extraction sale that material particularly in this gold price environment again as i mentioned you know some 750 all sustaining costs probably no surprise while we're doing that but um but i think you know stay tuned we'll can sort of reconcile some of the uh what's what's remaining on the um on the balance there but i think you're looking at the next that material continuing for the next couple quarters in the 2027 it's not unreasonable uh you know unreasonable timeline obviously i can't speak to the grades um that are in there because we all know but uh but i But I think it's reasonable to assume that we will have additional material remaining from which to sell the next couple of quarters. I mean, I guess just simplistically, is it really just a function of the fact that, you know, it's obviously underwater, so it's hard to really guesstimate or estimate how many tons you actually still have, right? Yeah, in order to get a representative sample, we'd have to pump all that material out and dry it. And if we're going to do that, then we might as well sell it. So, yeah, so the reality is that we just won't be able to sample that material until it's in the drying process as we saw in Q4. Okay. Okay. Great. Thanks very much, guys. The next question comes from Rodrigo Gutardo with BTG. Please go ahead. Hello. Good morning, guys, good morning, all our team. questions on my side the first one could you give us an update how are the updated technical reports for the three current mines evolving right now so since the last one error has made meaningful development in operations brought food initiatives we have new metal prices since then so what do we expect from these studies if there's a planned timeline when we plan to release them if you could would give us an outlook and what you expect it would be very helpful. Yeah, good question. Again, we had this question particularly in Tucumã last quarter. We do expect to put out an updated technical report in Tucuma this year. That's in the late stages here. So stay tuned. That will be before your ask. continue with our normal reporting process for cariva and javanchina so you know but on this call will not give a a steer as to what we're we're saying there obviously federal prices being where they're at has given us a good opportunity to kind of reevaluate those plans and and make some optimizations but i'd say the focus for us is still on marches um so yeah stay tuned we'll We'll have that discussion later this year. Okay, perfect. Thanks for that, Dave. My second question, Marco and our other team, just how do you see the arrows equity story until 2029 before Fortnite, right? So we've been seeing many brownfield initiatives, arrows generating cash, leveraging in a fast pace. So, just in a broader picture, in terms of operations, project, shareholder's return, how do you see the company until 2029? Yeah, it's a good question. Thanks for that. You know, I think, as I've said many times, the investment case for high-quality assets in copper, ones that are generating significant amount of cash flow in this environment, Certainly, I think, deserves attention. Obviously, leveraging our assets and the strength of our balance sheet into what we think is truly an incredible growth project and for us and setting up the business to execute on that is something that we spend a lot of time thinking about, as well as advancing some of the exploration programs in our portfolio. I think what differentiates Aero in this environment from perhaps, I don't want to say the rest of the sector, I think that's too broad of a brush, but certainly some of our peers, we're at the tail end of what has been a multi-year, very intensive, capital-intensive phase. we're seeing the rest of we have a few years until we embark on our next growth asset. We think that sets up our business very well to invest not only in the future growth that we have in Fernas but a couple of organic growth drivers we have around our operations as we spoke to in detail on our capital markets day but it's an exciting time obviously to see the The effort that we've put into the operations, into value drivers like the concentrated sales program, and obviously the One Arrow initiative that we have been driving in terms of our risk mitigation strategy in the currency, I think is all setting us up well to position the company to execute on our organic growth pipeline and for us add additional value through some of our exploration programs and brownfield development projects that we spoke about our capital markets day and um yeah i've a i have a strong balance sheet on top of that so our priorities in the short term i think as wayne alluded to and i think short term uh you know the next quarter obviously we want to pay down the balance of our of our revolver that is a that is the top priority for us as a team and it's something that we committed to to all of our shareholders back in in 2025 and And I think, you know, collectively very pleased to see that on the near-term horizon. That's very clear. Thanks for the update. The next question comes from Anita Soni with CIBC World Markets. Please go ahead. Hi, good morning. I apologize if this has been asked, but I just wanted to circle back to Zamatina. Yeah. You mentioned that if we looked at Q4 as a run rate, that would be more indicative of what it could do in 2027. Did you give the parameters around what you were seeing for Q4? I might have missed that. No, we didn't. For tons grade, yeah. Go ahead. Yeah, if you just look at sort of the midpoint of our guidance, obviously it still implies a pretty big step up in operational performance there. I think the question is, you know, how do you suit yourself to the 50,000, you know, 50, 000-ounce plus range? Obviously, I think looking at the full year of 2026 and multiplying that, you know, looking at that, I don't think that's going to be a good idea. The first nine months and saying, well, you know, that's representative of what the asset can do, I don't think is fair. I would point to what we expect to do in Q4. I mean, from an operational perspective, you know, we talked about this in our capital markets day. If you look at what we're expected to be, we're sort of triangulating into the 20,000 to 25,000 ton a month range from the mine and plant. I think, you know, we saw very close to those levels in Q3. I think the normalized value is about 19,000 a month. So, we did see the mine come back, as Gels alluded to. Big impact there was not great as we delayed some access to some of the really, you, know, key high-grade stoves that we expect at the end of the quarter, and those are obviously transitioning to end of Q4 here. So we've now provided specific parameters. It was more of an applied mathematical extrapolation based on the Twitter archives and where we've been for the first five months. Sure. And then at Kariba, I just wanted to ask, in terms of the tonnage, so it looks like you've kind of ramped up to that. I think the Capital Markets Day said kind of a 4.5 to 4.7 million ton per annum sustained throughput, and you're pretty close to that this quarter, if I'm doing the math right. So, do you expect that that could be sustained into 2027 at this stage, or is there something that I might be missing in terms of additional tie-ins or other work that needs to be done in 2027 to sustain that rate? Well, we think that's sustainable, obviously, that, you know, from time to time, we obviously do have planned shutdowns that will impact that on a quarterly basis, but nothing, no major tie-ins. I think the de-bottlenecking work that the team did, it was led by Jelson here, I think it showed up this year, sequential throughput improvement, you know, and we think that that piece is representative of what we can do. I said, you know notwithstanding the normal downtime permanence in the year, but pretty solid performance from that operation, even more worse a few years ago. Okay, thank you. That's it for my questions. We have a follow-up question from Aris Wakeda with Cochabank. Please go ahead. All right. Thanks for the follow-ups. Just a question, clarification question, Mako. You mentioned there is a tech report update coming for Tukma before year-end. Is that going to be only updated, like, reserves, resources, or should we or can we anticipate also like a life of mine production plan uh updated in that as well yeah thanks for us uh we do expect an updated resource and reserve estimate uh coming from the operation part of your end um we you know there will be details about the phase of that operation uh is maybe as far as i'm prepared to go on uh that's sort of 500 421 so it's not a huge surprise thing at all um but we'll provide some some information about the phases particularly around how the reserves are constructed. That work is happening as we speak, and we're well-positioned to put that out before you're in. Okay, thanks. This concludes the question-and-answer session. I would like to turn the conference back over to Marco DiColipo for any closing remarks. Please go ahead. Yeah, thank you, Operator, and thank you everyone for joining us. I know it's a very busy time, and so, as always, we appreciate the lively Q&A. discussion. It's one of the highlights of the quarter for me, and I appreciate the active dialogue. As always, our team is available for follow-up discussions and questions, so please do reach out to Courtney for any on our team. And for those of you that we're going to see in Toronto, Boston, and Montreal in the coming days, we look forward to seeing you in person. Thank you very much. Talk soon. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.