Welcome to the GCM Mining Corp. Q4 2021 Results Webcast. My name is John. I will be your operator for today’s call. [Operator Instructions] And I will now turn the call over to Mike Davies.

Great. Thanks, John, and thank you for joining us this morning for the GCM Mining Q4 and year-end results webcast. Joining me this morning from Guyana is our CEO, Lombardo Paredes. I will first go through our prepared remarks and then Lombardo will be available through the Q&A session. First, let me direct you to our disclaimer regarding forward-looking statements that will be made by us during the webcast this morning. 2021 was a successful year for GCM Mining. We accomplished what we set out to do. We completed 97,000 meters of drilling at Segovia, our biggest year yet, numerous high-grade intercepts led to successful increases in resources and reserves. It was our sixth year of meeting guidance. We returned $17 million to shareholders, $11.5 million through our monthly dividends and $5.5 million through our normal course issuer bids. We continued to make ESG a part of how we operate and we have since the beginning of the company in 2010. We reported strong financial results and continue to strengthen our balance sheet. And one of our milestone assets last year joining the company was the Gold X Toroparu Project, completed that acquisition in June, raised $300 million in the summer to fund it, and then at the end of December, published an updated mineral resource and validated the economics and a positive PEA. Last night, we released our fourth quarter and annual operating and financial results. Although it was another year of coping with the COVID-19 pandemic, we generated solid results. Our net income for 2021 was $180 million or $2.25 a share. Adjusting for various non-operating gains and losses, our adjusted net income was $71.6 million or $0.87 per share. And over the next few slides, I will take you through the details behind many of our metrics…

Thank you. [Operator Instructions] Our first question is from Carey MacRury. Please go ahead.

Hi, good morning, Mike, just given the cost inflation pressures out there, just wondering what you’re expecting for cash costs at Segovia for 2022.

Thanks, Carey. Good morning. I think in 2022, we’re not seeing significant inflation pressures in Colombia on our cost structure. We’re also seeing that the currency movements have been a bit of an offset to some of the cost inflation that’s happened locally in the country. But I think for 2022, we will see our cash cost pretty much in the range of what we’ve seen this year in the low $800 an ounce levels.

Okay. And then maybe related – and obviously, you are – yes, go ahead.

I was going to say in our all-in sustaining costs, as I said in my comments, I think we will be in that sort of $1,180 to $1,250 sort of range. Gold price is obviously a factor as it’s been bouncing around of late. Our – we do have some costs that are tied to the price of gold. So that will be a bit of a factor. Mix of material between the company operations and contract operations has a little bit of a variation in terms of where our cash cost lands for month-to-month. Spending on the CapEx program is probably the biggest cost outside operating costs that we will spend, and we’ve guided $50 million to $55 million this year on sustaining CapEx, which is about $5 million to $10 million more than last year. But with the additional production, that will still keep us around sort of somewhere in the $220 to $230 an ounce level of sustaining CapEx next year. So I think our cost structure right now is gravitating to be something around a $1,200 an ounce or so all-in sustaining cost at this time.

Okay. And then maybe related on Toroparu, obviously, you are looking to finalize the PFS, any sense on potential increases on CapEx, just given again [indiscernible].

I’ll let – yes. Lombardo, do you want to comment on your…

Yes. Let me comment on that. Yes. The basic – the initial budget in the PEA for the Toroparu Project is at 300 – around $350 million. And as you know, we got financing around $300 million plus. We have silver at Wheaton, Wheaton for the streaming, which is $140 million more. In Toroparu, we are – we have paid the PFS by July. At that moment, we expect to have a cost estimate with plus or minus 10% with 90% probabilities. We do not – we are not expecting an increase in cost more than 15%, 16%, 17%, in that range. There are two – the two main factors which can affect the cost of the Toroparu Project is the disruption in the supply chain. You know that the cost of the long-lead items probably are going to increase and also the delivery time is also going to increase. And all those things mean – can – could increase the cost of the project. We are taking advantage of that in the sense that we are moving very quickly. For example, next week, we expect that we are going to sign the EPCM contract for the processing plant and the related facility. Also next week, we expect to receive the bids, five contenders’ bids for the – to be the mining contractor at the mine. And also in a couple of weeks, we are going to send all the participation [ph] for the long-lead item to 8 potential suppliers. We are going to put the purchase orders and then we will pass the management of the process to the EPCM contractor. Also in the same company, same part of – seeing the impact of project, which is very important because they got remote location of the mine, we just…

No, that’s great. Thanks, Lombardo. Maybe just one more question just on the Wheaton stream. Presumably, you guys have been in discussions with them just to finalize the stream. Any update on that front?

Yes. The stream agreement was finalized when we bought the company. I think the only deliverables that we still have to Wheaton to commence the funding process will be delivery of the PFS study this year, which they are waiting for, and sending confirmation of the final mining license that we also expect to have midyear. So, no, expectations of any hiccups, when it comes to the stream process with Wheaton, they are very comfortable with us, having gotten experience with us through the Marmato project and how we operate and seeing how things run in Segovia. So Wheaton is quite excited about the opportunity to work with us in Toroparu.

Great, that’s it for me. Thanks, Mike and Lombardo.

Great. Thanks, Carey. I have one question here from the – from Eduardo on the online portal. The total – how much is the total CapEx on Toroparu that’s already been spent and what’s expected for this year? As Lombardo said, we are still working on the PFS that may modify the timing of some of the spending. But based on the PEA, we had expected to spend about $125 million this year, of which about 40% would be funded by the Wheaton stream. We spent $9 million on Toroparu in the second half of 2021, advancing the preconstruction, the studies and the exploration. So we’ve been moving ahead, as Lombardo said, pretty aggressively, already get started on the fast track of the project ahead of these last couple of steps with this PFS and the mine life – mining license, sorry. John, do we have any other questions?

[Operator Instructions]

Alright. Well, if there is no further questions, we…

I’m sorry. Mike, we did have another question from Carey.

Okay.

Hey, just one more follow-up, I guess. Just on the polymetallic plant, how is that progressing in Q1? And when do you expect to start selling concentrate?

It’s progressing well. It’s operating normally. We’ve got to build some additional warehouse space, which was the plan for the early part of this year, to facilitate the processing of a higher level of tailings. One of the things that we found, we were deep in negotiations for an offtake contract, but as you can see, this – the way this world is going these days, we got two late entrants into the discussion, pretty notable companies looking for concentrates and aggressively bidding. So right now, we’re in the process of speaking with three parties. Hope to have an offtake contract resolved shortly, but really pleased to see the competition for concentrates.

I agree. Thanks, Mike.

Mike, I would like to make another comment on the Toroparu Project. In – out of my experience in bigger projects, well, my – is one of the key elements in that is the quick decisions. The decision-making process has to be in place and have to be very effective. Based on that, for example, I’m spending a week per month in Toroparu just to see first high with my eyes how the things are progressing, how the things are moving and having day-to-day explanation and – about all the decisions that we have taken in the project. Well, in my personal experience, my biggest project was a $2.6 billion project, a contraction of a refinery. And I’m trying to apply to Toroparu Project all my experience in projects and again the quick decision, the quick analysis of these problems are key in the success of accomplished project, and we are applying that tools into Toroparu.

And I have no further questions in queue at this time.

Alright. I’ve got a couple here coming in through the web portal. A follow-up for Eduardo, just to be clear, it was $9 million for 2021 of expenditure on Toroparu. From Taylor from Red Cloud following-up on the polymetallic plant, we plan to provide guidance on the plants in the future. The answer is yes, we will, through our quarterly reporting, continue to provide updates and guidance on both production as well as the offtake contract once it’s in place. And lastly from Alexandra, CapEx to be spent on exploration in Segovia this year as well as total CapEx at Segovia and Toroparu, as I said, on Toroparu, still finalizing numbers as we get through the PFS. But the PEA had expected about $125 million this year. With respect to Segovia, we provided guidance that we will spend about $50 million to $55 million of sustaining CapEx this year. That includes the drilling that we will be doing on the in-mine, near-mine and mine geology drilling, which will be about $15 million. And then we’ve got the non-sustaining CapEx, which will be about $10 million of share. About 45% of that is the ongoing brownfield program that we continue to drill in the Segovia title. So hopefully, that’s clear for everyone, and that’s all the questions we have on the web. John, if there is no more questions, I think we will say thank you to everybody for joining us this morning. And if you have follow-ups, please feel free to reach out to us, and we’d be happy to give you some additional responses.

Thank you. Thank you, ladies and gentlemen. This concludes today’s conference.

Alright. Thank you very much.

Great. Thank you.

And thank you for participating, and you may now disconnect.