Thank you for standing by. Good afternoon. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Silvercorp First Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Lon Shaver, President of Silvercorp. Please go ahead.

Thank you, Julie. On behalf of Silvercorp, I'd like to welcome everyone to the call this morning. Today, we'll discuss our first quarter fiscal 2025 financial results which were released yesterday after the close of the market. A copy of the news release, our MD&A and financial statements are available on our website and SEDAR+. Before we get going, please note that certain statements on today's call will contain forward-looking information within the meaning of applicable securities laws. And also please review the cautionary statements in our news release as well as the risk factors described in our most recent regulatory filings. Now to recap our quarterly financial results, we kicked off the fiscal year with record quarterly revenue of $72 million. That was a 20% increase from last year. This growth was driven by a robust commodity market, which led to notable improvements in realized metal prices, particularly in China compared to Q1 of last year. In particular, the realized silver price rose by 36%, gold by 18%, lead by 18% and zinc by 23%. Silver remains our most important metal, contributing 63% of our Q1 revenue, followed by lead at 22%. I'll note that silver was 59% of revenue in Q1 of 2024 and 55% of revenue in Q4 of 2024. The results of this quarter reinforce why investors should own our shares, namely demonstrating that we provide leverage to higher metals prices through the response in our financial results. Moving down the income statement, attributable net income for Q1 was $22 million or $0.12 per share. This is up significantly from $9 million or $0.05 per share in Q1 of fiscal 2024. The increase in our bottom line reflects those higher metals prices, partially offset by lower sales volume and higher business expenses related to the Adventus…

[Operator Instructions] Your first question comes from Joseph Reagor from ROTH Capital Partners.

Lon, congrats on a good quarter. So on Adventus, I know you just said that you guys will be providing an update soon. But can you give us kind of like a rough time line on what we should expect as far as news flow post acquisition now that it's closed?

Well, the -- as I said, we're going to be putting out an update in terms of what the go-forward plan is. Adventus and the Curi mining team did a great job developing El Domo. And so what we're looking to do is kicking off the advancement of more detailed engineering and other project activities and looking at some of the areas where we can get going with development of the project, early lead time items and certain projects that are going to be necessary to build the mine while we're looking at advancing the status of engineering and potentially fine-tuning some of the other development plans.

Okay, fair enough. Also, you mentioned this Ying technical report that's coming. I think the wording you used was imminently. Will this report be designed to show a full use of the mill or should we expect a certain, like, capacity level utilization?

Well, I think, Joe, you should wait for the report. I don't want to give advanced view until the actual report is out. But the report does contemplate and factor in the expansion that's underway.

Okay. And remind us, what's the current expectation as far as completion date for the mill?

November.

November, okay...

I think I should add, Joe, the thing is that the mill expansion is only 1 element of the expansion program. Recall that we're shifting mining methods. We're also looking at getting the permits renewed and extended to allow for an increased throughput rate. And so all of these things have to dovetail together, and this will get covered off in that report.

[Operator Instructions] Your next question comes from Felix Shafigullin from Eight Capital.

Lon, congratulations on a good quarter.

Thanks, Felix.

Just a couple of questions from me. Regarding the mining costs being that kind of, I guess, ticked up a little bit in this quarter compared to year ago quarter, should we be looking at that as kind of just a one-off due to more tunneling and grade control drilling that was expensed? Or is that something -- is that like an issue that might persist for some time going into the future? What is kind of the right way of looking at it?

Well, again, we're so close to a life of mine plan to speak to what are going to be year averages to not be sort of caught up in sort of a quarter-to-quarter basis. We don't think that the uptick that we saw in this quarter is hugely material. So I think I'll just ask for your patience on that report when it's out and we look at sort of more longer-term numbers. That's a question we can address at that time.

Okay, all right. So my next question, I mean, I imagine would probably also be addressed in the report but I'll ask it anyway. So looking at these 59,000 tonnes of ore that was stockpiled in this current quarter, and I think the production update also said that there will basically be more ore that will be added to the stockpile. Look, as I'm trying to wrap my head around it, I don't recall this kind of happening in the past. And yes, the additional kind of 1,500 tonnes per day additional capacity from the new production line would resolve those issues, presumably. But why did so much ore just not get processed? Just it seems kind of strange that this happened.

Actually, if you look back, we have seen some carryover and even in our Q4, which traditionally is our weakest quarter because of Chinese New Year, mining activity ceases because of the shutdown but it's easier to keep the mill running. And so we actually, even in this last Q4, we did play a bit of catch-up in Q4 to cover some of the inventories that were developed in Q3. So it's just more of the fact that as we're advancing and developing, we're looking at ramping up that mining activity and we are hitting up on those capacity limits at the mill. And so I think this is sort of evidence of why the expansion plan and why the mill expansion specifically is needed as part of delivering this growth in production that we're expecting to show in this life of mine plan that will come out in the report. I don't know if that helps, but...

So some of this ore that was stockpiled, if I understand correctly, some of it is kind of, I guess, let's just say, runoff from Q1? Is that kind of the right way to think about it?

Yes, yes. I mean, it's mine...

Q1 calendar '24 is what I mean. So Q4 fiscal?

No, no. No, no. This increase was generated in this quarter.

Okay, got you...

Yes. What I was referring to is the fact that even in the last Q4, we were able to mill more than we mined in Q4 because of what had been mined and stockpiled in, say, Q3. So I was saying that we have had the ability to play catch-up in Q4 because mining activity has been less than milling. And in this case, we've got mining activity greater than milling in Q1. So that's created that inventory stockpile that we're going to mill through by the end of this fiscal year.

Okay, that makes sense. One last question before I go. I think you mentioned the remaining kind of CapEx spend on the new tailings facility but I didn't quite catch it. What's the number that we should be looking at there?

Budget for this year is $13 million.

So that's the remaining?

Yes, that's the remaining for the year. And obviously, we've put -- we put a bit -- that will include some of the $14 million that was spent to date because we do pick up what was spent in this current quarter.

Your next question comes from Dalton Baretto from Canaccord.

Lon, I wanted to ask you about the permit at El Domo. The lower courts threw out the challenge. And I'm just wondering, do you guys think it will be appealed? And how are you planning your next steps based on that?

Well, I think the indications that were put out to the market were that the plaintiffs indicated at the end of the first lower court hearing that they intended to appeal, and so we fully expect that to take place. And that will move then from the local court to the provincial court. And we intend to respond to the case as Adventus and the team in Ecuador have been. And we feel positive about the outcome, just given what we've seen not just in terms of the outcome of the hearing, but in terms of the case, the way it was handled, the commitment from all parties on our side to defend against the allegations made by the plaintiffs. So from our standpoint, I guess the second part of your question is we don't intend to hold back from advancing the project, pending that appeal.

Are there any restrictions on you guys while this is still in the court system? Or can you move ahead as of...

Yes, we can move ahead.

Got it, okay. And then in the event that it gets all the way up to the Supreme Court, what sort of time line are we talking here?

Well, to be specific, Supreme Court, in this case, if it makes it to the sort of the third level, which would be the constitutional court, that could be a matter of 2 to 3 years potentially. And in some cases, there's other cases in the country that have outstanding challenges that have been open for years and not addressed or resolved and the projects just went ahead.

So would you guys be willing to sort of put shovels on the ground while this is going on in the background?

Yes, I think that's what we're indicating in the sense that these development plans that we're going to come out with are going to speak to the activities we're looking to target initially to move forward and build the project.

Got it. And maybe 1 last 1 for me. How are you thinking about financing the actual build?

Well, the actual build based on the previous feasibility study and our work that we think we can make some improvements can be covered off based on the funding package from Wheaton as well as cash on hand.

Your next question comes from Kevin O'Halloran from BMO.

On the Ying optimizations and the technical report, will the other optimizations you're making, like the XRTs and the equipment upgrades, will those all be included in the updated life of mine plan? And then maybe if you could just give a quick comment on how those are tracking.

Yes, they will because we're looking at operating cost, cutoff grades based off of all these different factors coming to play, mining method, whether that be shrinkage resuing, also introducing 2 other mining methods on a very minor basis from a tonnage standpoint. So we've been looking at all of those factors and looking at the costs and -- both for determining the reserve resources as well as coming up with the life of mine plan and economics. So you'll see all of that in that report. And in terms of comments, I'd say yes, things are tracking well, tracking to plan. And if anything, some of the work that we've been doing in developing these ramps have opened up areas, new access, identified new zones that were previously unknown. So seeing some ancillary benefits from this development plan and the shift in mining.

Okay, great. Yes, looking forward to seeing that come through in the report. Last 1 for me is, can you just remind us of the time line that you're envisioning for Kuanping in terms of getting that into development and then how long until first production?

Well, that's going to be sort of a bootstrapping situation where we will break ground and develop and, obviously, looking at developing, how would I say, efficiently and finding a way to get into early ore even if that's development ore that we can bring to the mill. But looking to see ground broken and the mine starting to be built by the end of this fiscal year.

Okay, got you...

I think you should manage expectations in terms of what initial tonnages are going to be but look to break ground and get that mill up and running -- sorry, get that mine up and running by year-end, early in the new year.

Okay, great. Congrats on a strong quarter.

Your next question comes from Felix Shafigullin from Eight Capital.

Just 1 question for me. I just wanted to double check. The XRT sorters are operational already, right?

Well, they're coming in, in a phased approach. And so we've got 1 that's in trial that is being installed -- has been installed and is operating on a trial basis at Mill No. 2. And it's based off of the results on a more consistent operating basis that will determine the addition of the other 2 that are planned at the other mine site locations.

This concludes the question-and-answer session. I would now like to turn the conference back over to management for any closing remarks.

Great. Well, thanks, operator, and thanks, everyone, for joining us today. If anyone has any further questions, please feel free to call or e-mail us, and we look forward to hearing from you. And look forward to following up with some of these exciting news items that we are going to be releasing here in the coming weeks. Have a great day.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.