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DATETuesday, May 5, 2026 at 5 p.m. ET
CALL PARTICIPANTSPresident and Chief Executive Officer — Rodney AntalChief Financial Officer — Michael SparksChief Operating Officer — William MacNevinTAKEAWAYSÇöpler Mine Divestment -- Definitive agreement to sell the Çöpler mine for $1.5 billion in cash; expected to close before the end of the third quarter, with regulatory approvals pending.Free Cash Flow -- $211 million from continuing operations generated in the quarter, increasing cash to $634 million at quarter-end (after $87.5 million milestone payment related to Cripple Creek & Victor).Share Repurchases -- $300 million completed post-quarter, acquiring over 9 million shares in April at an average price of approximately $32 per share; total shares repurchased since 2021 exceeds 29 million at an average price of $21 per share.Debt Position -- All convertible notes redeemed during the quarter, leaving SSR Mining with zero debt at quarter-end and total liquidity of $1.1 billion.Gold Production -- 110,000 gold equivalent ounces produced at an all-in sustaining cost (AISC) of $2,433 per ounce, with production and cost guidance reaffirmed for the full year.Puna Site Performance -- Puna delivered record daily processing throughput and more than $120 million in mine site free cash flow in the quarter, with average realized silver price exceeding $90 per ounce.Cripple Creek & Victor Integration -- Operation has generated $325 million in free cash flow since its $275 million acquisition (end of February 2025), surpassing purchase price in 12 months.Segmental Outlook -- Management expects 55%-60% of annual production weighted to the second half, with higher sustaining capital spend planned for the second and third quarters.Cost Management -- Diesel hedges in place cover nearly 70% of diesel exposure at Marigold and Cripple Creek & Victor through year-end; every $10 per barrel oil increase adds $7-$10 per ounce to AISC in 2026, and closer to $20 without hedges in 2027.Marigold Growth -- Updated life-of-mine plan for Marigold, including Buffalo Valley, expected within 12 months, with additional mine life extension opportunities actively advanced.Hod Maden Strategic Review -- Review progressing with focus on multiple options, including divestment; update anticipated in the coming months and Q1 spending at Hod Maden was $31 million, primarily for early site works.Care and Maintenance (Çöpler) -- Anticipated costs $20 million to $25 million per quarter until close, following a higher Q1 due to tax and license renewals.Need a quote from a Motley Fool analyst? Email [email protected]
SSR Mining (SSRM 0.32%) achieved a major portfolio shift by announcing the $1.5 billion divestiture of the Çöpler mine, expected to close by the third quarter, significantly increasing future cash reserves. First-quarter results included $634 million in cash, driven by $211 million in free cash flow, and the company ended the quarter debt-free, marking a substantial improvement in balance sheet strength. Management confirmed higher weighting of production and capital investments in the year’s second half, alongside targeted growth initiatives at Marigold and Puna. Future capital allocation decisions—including dividends or renewed buybacks—were described as under active review, with an emphasis on balance sheet, growth, and shareholder returns.
Cripple Creek & Victor generated cumulative free cash flow exceeding its acquisition cost within 12 months, demonstrating rapid value realization from recent M&A.Puna achieved record operating throughput for a fifth consecutive quarter, with margins benefiting from realized silver prices above $90 per ounce.The strategic review regarding Hod Maden remains ongoing with an update forthcoming, while Q1 costs remained largely tied to early development activities.Segmental performance showed temporary operational headwinds at Seabee from extreme cold, which management expects to normalize as production increases through the year.Pending regulatory approvals constitute the final step for Çöpler sale closing, and cost controls—including hedging programs—play a pronounced role in short- and medium-term AISC outcomes.INDUSTRY GLOSSARYAll-in sustaining cost (AISC): A comprehensive metric capturing total costs to produce a mineral ounce, including direct operating costs, sustaining capital, royalties, and corporate overhead, standardized in the gold mining sector.NCIB: Normal Course Issuer Bid; a regulatory-approved share repurchase program allowing a company to buy back shares on the open market.Carlton Tunnel: Water discharge management infrastructure at Cripple Creek & Victor; milestone regulatory achievements tied to contingent payments under the Newmont asset acquisition structure.Life-of-mine plan: A technical document outlining projected extraction volumes, timing, and costs for a mining asset’s productive life, used for value forecasting and operational planning.Layback: Mining term for excavation to widen or deepen an open pit, often required for continued access to ore and mine life extension.Full Conference Call TranscriptRodney Antal: Great. Thank you, Alex, and good afternoon to you all. It has been a strong and productive start to the year and I am proud of the outstanding work delivered across the company in recent months. Most notably, in March, we announced and advanced a definitive agreement to sell our interest in the Copler mine for $1.5 billion in cash. This transaction is progressing well and we expect it to close before the end of 2026. The divestment of Copler provides a strategic repositioning for SSR Mining Inc. as a focused Americas-based gold and silver producer with a clear emphasis on free cash flow generation.
Our portfolio is now anchored by the Marigold and Cripple Creek & Victor operations, two high-quality, long-lived assets that together form the third-largest gold production platform in the United States. Both operations offer meaningful runway to future growth and mine life extensions. Operationally, it was a solid quarter with our results tracking well against our internal plans and full-year guidance. Financially, the business generated more than $210 million in free cash flow in the first quarter of the year. As a result, and following the settlement of our convertible notes in March, we finished the quarter with more than $630 million in cash and zero debt.
Our substantial cash position provides us with a robust balance sheet and flexibility to continue to invest in the organic growth opportunities across the portfolio and consider further capital returns to shareholders in the future. On that note, we completed $300 million in share repurchases, acquiring more than 9 million shares subsequent to the quarter in April. Since 2021, we have repurchased over 29 million shares at an average price of $21 per share, underscoring our disciplined capital allocation strategy and delivering meaningful per-share value accretion to our shareholders. After a busy and successful first quarter, we have created a very strong position for SSR Mining Inc. moving forward.
We expect our low-risk, Americas-focused platform and track record of disciplined capital allocation will position SSR Mining Inc. as an attractive vehicle for investors seeking exposure to both gold and silver in the Americas. Before I move on to the next slide, I want to highlight some of the catalysts ahead for our business. First, we expect to provide an updated life-of-mine plan for Marigold in the coming 12 months, incorporating growth opportunities like Buffalo Valley as we push to optimize and extend mine life at Marigold. Next, we are continuing to advance various brownfield growth opportunities across the business, including both Puna and Seabee. William is going to speak more on these in the coming slides.
Further, we anticipate providing an update on our strategic review of Hod Maden in the coming months. And lastly, as noted, we expect the Copler transaction to close before the end of the third quarter, which will add a further $1.5 billion in cash to our balance sheet. These catalysts in and of themselves present an opportunity to create additional value for our shareholders and will be further bolstered by the ongoing free cash flow from our Americas operations. Let us move on to Slide 4 and talk more about our track record of value creation. The figures on this slide illustrate a powerful picture of discipline and value creation.
Over the past few years, we have clearly demonstrated a track record of value creation in per-share metrics, capital returns, and M&A. I have spoken to our commitment to capital returns and particularly share buybacks, but separately, we also have a clear track record of value-accretive M&A. This was most recently illustrated by the remarkable returns being generated from the acquisition of Cripple Creek & Victor in 2025. This is further supported across the portfolio where we have consistently demonstrated our ability to add value through mine life extensions and optimizations.
These successes, combined with a supportive gold price environment, have driven a more than 300% increase in our consolidated consensus net asset value per share since 2024 and a better than 400% increase in consensus cash flow per share over the same period. A fantastic outcome that differentiates SSR Mining Inc. amongst its peers. I am going to turn it over to Michael on Slide 5 to discuss the quarterly results.
Michael Sparks: Thank you, Rodney, and good afternoon, everyone. In the first quarter, we produced 110,000 gold equivalent ounces at all-in sustaining costs of $2,433 per ounce, well aligned with our expectations. As highlighted in our guidance release, we continue to expect 55% to 60% of full-year production in the second half with higher sustaining capital spend in the second and third quarters. William will speak in more depth about each operation in the coming slides, but I wanted to call out two notable milestones from the Q1 results. First, Puna delivered more than $120 million in site-level free cash flow in the quarter, an excellent result that reinforces Puna's position as one of the highest-margin primary silver mines globally.
We are excited about the opportunities for meaningful mine life extensions and are advancing these programs through 2026. Second, following another strong quarter from Cripple Creek & Victor, the operation has now generated approximately $325 million in mine site free cash flow since its acquisition in 2025. This is a phenomenal result given the $275 million acquisition cost and the long mine life ahead for the operation. So overall, it is a strong and solid start to the year operationally, and we look forward to building on this momentum through the rest of the year. Now let us move to Slide 6 for a brief review of our financial results.
Our solid operational results translated into strong first quarter financials, including nearly $600 million in revenue and 113,000 ounces of gold equivalent sales. With the sale of our ownership in Copler announced in March, the asset is now classified as a discontinued operation in our financial reporting. The results from discontinued operations largely reflect a one-time non-cash adjustment to fair book value on the announcement of the sale of Copler. Looking at the rest of the business, net income from continuing operations in 2026 was $1.16 per diluted share, while adjusted net income per diluted share was $1.15. Free cash flow from continuing operations in the quarter was $211 million.
This strong free cash flow increased our cash position to $634 million at the end of Q1, inclusive of the $87.5 million contingent payment made to Newmont during the quarter as part of the Cripple Creek & Victor transaction. Also during the quarter, we fully redeemed our outstanding convertible notes, leaving the balance sheet debt-free at March, and with total liquidity of $1.1 billion. As Rodney mentioned, subsequent to quarter-end, we completed $300 million of share repurchases under our buyback program, reflecting our continued commitment to shareholder returns.
Looking ahead, we expect our ongoing free cash flow combined with proceeds from the sale of Copler before the end of 2026 will further strengthen the balance sheet and enhance our ability to continue to allocate capital with discipline while prioritizing high-return growth opportunities and long-term value creation. Before turning the call over to William, I will briefly touch on global cost pressures with a focus on fuel. At Marigold and Cripple Creek & Victor, nearly 70% of our diesel exposure is currently mitigated through zero-cost collars executed in late 2025 which extend through 2026. At Seabee, diesel is secured through annual winter road deliveries, and at Puna we are not currently seeing meaningful impacts given domestic supply conditions.
As a guide for the remainder of 2026, for every $10 per barrel increase in oil prices, it translates to approximately a $7 to $10 per ounce increase in our consolidated AISC. We will continue to monitor fuel markets closely as we maintain a disciplined focus on cost control and operating efficiency across the portfolio. Now over to William on Slide 7.
William MacNevin: Thanks, Michael. I will first start with EHSS. Getting our people home safe and healthy each and every day is foundational for our business. This is highlighted in one of SSR Mining Inc.'s three core values, being safety first, always. This year, as part of our ongoing improvement focus, we are commencing implementation of I Care We Care across SSR Mining Inc. This is a safety leadership and culture program prioritizing people, and how we each own and take responsibility for ourselves, our workplace, and our teams. I am very encouraged by the energy and input coming through from this early work and look forward to this making a difference in both people's safety and overall business performance.
Now on to Slide 8 to start with Marigold. Marigold had a solid start to the year with production results well aligned with expectations. We continue to expect full-year production at Marigold will be 55% to 60% weighted to the second half of the year, driven largely by higher grade stacked midyear. AISC at Marigold are expected to peak in 2026, driven by timing of spend on fleet replacements and upgrades. Full year remains on track against the original guidance range. We are seeing cost pressures stemming largely from higher royalty costs driven by gold prices.
Nearly three quarters of our diesel fuel usage at Marigold and Cripple Creek & Victor is hedged for this year, which has helped to insulate us against the current elevated fuel prices globally. Our focus remains on equipment productivities, maintenance quality, and efficiency with consumables to manage current and potential future inflationary pressures. Work continues on growth initiatives across Marigold, particularly at Buffalo Valley, as we work to include the project into an updated life-of-mine plan at Marigold within the next 12 months. We have also had some great results from near-mine drilling across the property, including some high-grade intercepts and DG-80 targets to the southwest of the current Mackay pit.
Our teams are also continuing to evaluate longer-term open pit expansions at New Millennium. These initiatives, combined with additional near-mine drilling campaigns and project evaluation work, point to significant potential for mine life extensions at Marigold in the future. We are excited by what is ahead and look forward to providing more details in the new technical report. Now on to Slide 9 for an update on Cripple Creek & Victor. Cripple Creek & Victor had another great quarter with better than expected recoveries driving strong production and delivering more than $120 million in mine site free cash flow.
Since acquisition at the end of last February, Cripple Creek & Victor has now generated $325 million in free cash flow, an excellent result that now exceeds the total transaction consideration in just 12 months. Cripple Creek & Victor remains well on track against its full-year production and cost guidance targets, with higher sustaining capital expected in the second and third quarters. We are continuing to evaluate opportunities to improve the longer-term production and cost profile of Cripple Creek & Victor through trade-off studies and potential for future mineral reserve conversion. Cripple Creek & Victor has an exciting future ahead and we look forward to continuing to deliver value at that operation going forward.
Now on to Slide 10 to discuss operations at Seabee. The first quarter at Seabee saw our continued focus on underground development. We aim to deliver stronger grades and production in the second half of the year. Production was also impacted by extreme cold in the quarter, which caused some temporary downtime in the processing plant. AISC reflected costs incurred with the winter road season, and overall, Seabee remains on track for its full-year guidance ranges. Exploration and resource development activities at both Santoy and Porky continued in the quarter, with both programs targeting potential mineral reserve growth.
At Santoy, near-mine drilling is focused on higher grades at depth, while our teams continue to evaluate Porky as a potential new mining front to support future mine life extension. Now on Puna on Slide 11. Puna continued its recent run of excellent operating results with a strong first quarter. Average daily processing plant throughput set another record, the fifth consecutive quarter Puna has delivered improvements in process plant efficiency. As planned, mining was focused on waste stripping in the quarter and Puna remains well on track for full-year production and cost guidance. Average realized silver prices in 2026 exceeded $90 per ounce, enabling Puna to deliver more than $120 million in mine site free cash flow in Q1.
Puna has been an excellent contributor to the business over the last few years and continues to clearly demonstrate its exceptional margins and free cash flow in the current silver price environment. We are advancing a number of opportunities to extend the current life at Puna, including additional laybacks at the existing Chinchillas pit, evaluation of the Malena target adjacent to Chinchillas for open pit potential in the medium term, and continued advancement of the Cortaderas underground project. With multiple avenues for growth at Puna, we are very excited for the future of this operation and see potential to meaningfully extend the mine life well beyond our current reserve base. On to growth on Slide 12.
I have touched on the majority of these projects and targets as we worked through each asset, but it is still worth highlighting the wealth of potentially meaningful growth opportunities that currently exist across our portfolio. These projects we have identified through successful exploration and development work completed at each asset in recent years. In my view, there is no better way to serve value for our shareholders than through the advancement of organic growth opportunities. It is also important to note these projects are compelling at current mineral reserve prices of $1,700 per ounce of gold and $20.50 per ounce silver.
We do certainly see future upside at each of these assets, but we will be diligent in ensuring we advance the highest returning growth opportunities. I am excited about the growth potential of this portfolio and look forward to executing on these opportunities to deliver value for our shareholders. I will turn back to Rodney for closing remarks.
Rodney Antal: Great. Thanks, everyone. With such an important and transformational quarter behind us, our focus is now building on this momentum during the remainder of the year. We are in an excellent position and have a number of meaningful catalysts ahead of us as I mentioned in the introduction to this call. With the low-risk, Americas-based business, continued delivery of strong operating results, organic growth initiatives, and the potential for further capital returns, we are well positioned to benefit from the ongoing re-rate of SSR Mining Inc. So with that, I am going to turn the call over to the Operator for any questions. Thank you.
Operator: Thank you, Mr. Antal. We will now open the call for questions. Our first question is from George Eadie with UBS. Please go ahead.
George Eadie: Good evening, team, and thanks for the call and the nice update today. On the Hod Maden strategic review, can you remind me what the goals are and what it looks like? If a sale is concluded as the outcome, do we have to wait another two or so quarters for that process to run and then another couple of quarters to close? Could we be 12 months away from that deal closing if a sale is the decided outcome?
Rodney Antal: Hi, George. We have not really given much guidance on the process that we are going through other than to announce the sale of Copler back in March. The objective of the review was to consider all of the options from actually building the project all the way through to sale. Within sale or other strategic options to remove ourselves from Hod Maden, there are multiple ways that could be achieved. Other than that we are still in the process of going through those different trade-offs, there is not much else to update, and some of the details you are looking for will come once we set a clearer picture for the direction.
George Eadie: Thank you. And then two payment questions. Can you remind me what the Carlton Tunnel payment is at Cripple Creek & Victor? And secondly, with the buyback, $300 million bought back 9.2 million shares. That suggests about $32.60 a share average, but the shares were only really in that range for a few days in April. Is that right, or am I missing anything there? Did you just buy at that little peak in early April?
Michael Sparks: George, I will take the second one first and then circle back to the Carlton Tunnel. With the share buyback program that we announced in the middle of the quarter, we put an NCIB in place which allows us to give directions to the banks to execute outside of us having material information. That process did move very quickly in a range anywhere from $21 up to $32, but with the volatility of the price during that period, it did come in around that $32 per share average. Circling back to the Carlton Tunnel, the $87.5 million that we paid to Newmont during the quarter was for the Carlton Tunnel milestone.
That leaves one more $87.5 million payment which would come in connection with Amendment 14 and the updated closure plan at that site as per the deal structure.
George Eadie: If Amendment 14 closes whenever it is, that payment is due straight after that approval. Is that right?
Michael Sparks: Yes. Amendment 14 remains on track, anywhere from 12 to 18 months is what we are penciling in, and that payment will be due once that work is completed and that permit is issued.
Rodney Antal: I will just chime in here a little bit, George. It is all going to plan. We are leading that work now. William and the team have taken that over, and the work that we have done to establish our presence in the community in Colorado and locally at Cripple Creek has gone really well. So that is all tracking to plan.
Analyst: Thank you.
Operator: The next question is from an analyst with BofA Merrill Lynch. Please go ahead.
Analyst: Thank you, Operator, and good evening, Rodney and team. On the buyback, given the very strong balance sheet and robust outlook for free cash flow generation, you mentioned an intention to look at the buyback again, and now the buyback authorization is totally exhausted. Why not go to the board prior to results and ask for the renewal then? What is your thinking on timing around a renewal?
Rodney Antal: It is important to take a step back. The share buyback we just executed, particularly on the announcement of the Copler sale, made a lot of sense and it was executed very quickly given the parameters we had in place. Stepping back, post the Copler incident a few years ago we suspended our capital allocation strategy. We said once we had clarity on the outcome, we would then revisit capital allocation and reimplement it.
That is what we are doing at the moment: looking holistically at how we manage capital allocation, the requirements for the business given the various growth opportunities in front of us, the balance sheet, and other factors, before we decide on the mechanisms for returns to shareholders. That work is underway with Michael and the team.
Analyst: So part of it is a discussion between whether it is going to be a dividend or buyback, rather than just whether you are going to do it.
Rodney Antal: I would not say “increase” because we do not have a dividend in place at the moment; we suspended it, and that is the point. It is a question of whether we reinstitute our yield framework that we had in place before. We had that way back in 2021, supplemented through the share buyback program. Our three pillars remain balance sheet strength, growth, and returns. It is about pulling that work together with the emerging growth opportunities to ensure we are making sound decisions.
Analyst: Acknowledging those growth opportunities, what are your views on M&A, particularly in light of your strong free cash flow and balance sheet position? What is SSR Mining Inc.'s appetite right now for growth through M&A?
Rodney Antal: We highlight our track record around M&A to show we have been good stewards of capital. We look at a lot of opportunities and when we do bring deals to our shareholders, there is usually a multiple of upside, and the results speak for themselves. That is part of who we are and we are particularly good at it. We have a number of filters for M&A through any cycle: it must align to our business strategy, compete for capital, and make sense for what we want to build. With the reset of the business, we have a particular focus on the Americas. Beyond that, we remain active.
Operator: The next question is from an analyst with RBC. Please go ahead.
Analyst: Thank you very much. Following up on capital allocation, pro forma net cash over $2 billion and about $200 million generated in free cash flow this quarter. Why not continue a bit of the buyback in the interim before closing of Copler? Or should we think about capital needs being higher for some development projects?
Rodney Antal: First things first, we want to close the deal and get the cash into the bank. That is really important through any transaction, and as we said, that will take place within the third quarter. That is the most important catalyst. It does not mean we cannot do more share buybacks, but as we evaluate the various options and have discussions with the board, the work that Michael and the team are doing needs to be as holistic and predictable as possible. So it is not an aversion to further buybacks; it is about closing the deal, getting the cash in the bank, and then the rest will come.
Analyst: On Hod Maden, you had signaled minimal costs. You did spend $31 million in the first quarter. How should we think about minimal costs going forward?
Michael Sparks: A lot of the work under Hod Maden right now is around early site works. That is where you are seeing the majority of that $31 million coming in, much of it advanced during the first part of Q1. We anticipate that as we go through the strategic review in the coming months, that will be much lower. It will not be zero, but it will be toward the lower end of the range.
Analyst: Earlier you mentioned the fuel price sensitivity of $7 to $10 per ounce AISC for every $10 per barrel increase in oil. Does that reflect the hedging program in place, and does it include secondary impacts beyond direct fuel usage?
Michael Sparks: Yes. The hedge program goes through the end of this year, so that $10 per $10 sensitivity is tied to 2026 with the hedge programs in place. Without the hedge programs, if we did not have anything in place going into 2027, that number would be about double, roughly $20. Fuel is about 10% of our operating costs. As William mentioned, we are focused on operational efficiency and controlling those costs. It is early to assess knock-on effects; we are monitoring them, but we are not seeing anything tangible at this point. We will continue to update you as the year progresses.
Operator: The next question is from Ovais Habib with Scotiabank. Please go ahead.
Ovais Habib: Hi, Rodney and SSR team. Congrats on a strong quarter. Great to see Cripple Creek & Victor outperforming. On CC&V, a follow-up to the Carlton Tunnel payment. Is there a positive read-through from the fact that you made this payment regarding the Amendment 14 permit? Is that coming imminently?
Rodney Antal: No. They are mutually exclusive. Amendment 14 is an expansion permit that Newmont had already begun when we acquired the asset, and our first technical report for Cripple Creek & Victor was constrained around that process. The Carlton Tunnel discussions were a separate piece of work with regulators around the long-term management of water discharge. So it is entirely separate from Amendment 14.
Ovais Habib: Thanks. On the mine plan expected at Marigold, including Buffalo Valley, should we expect a significant improvement in the production profile, or more of an increase in mine life?
Rodney Antal: First, it is about including growth options and understanding requirements for those options, such as permitting needs, infrastructure, and technical work to ensure we are in good shape for the growth profile. Some of those growth options will feature later in the life of Marigold due to permitting and development timelines. We are also running trade-offs across the property, particularly in the south around New Millennium and Buffalo Valley, to optimize infrastructure and reduce long haulage. In the initial years, the key focus is demonstrating production that accounts for blending requirements we discussed last year—having different faces open to allow for blending of final heaps on the leach pad.
The next five years will likely stay about the same overall, with growth options beyond that bringing in ounces where we can and extending the life of mine, supported by a substantial resource base.
Operator: The next question is from Cosmos Chiu with CIBC. Please go ahead.
Cosmos Chiu: Thanks, Rodney and team. On the contingent payment for the Carlton Tunnel of $87.5 million: per the original agreement, it was due when there is regulatory relief relating to flow-related permitting requirements, achieving highest feasibility allocation, or an alternative to water flow. It sounds like you achieved that milestone. Could you explain what that means and where we are today in terms of that water flow?
Rodney Antal: This remains a Newmont-led piece of work. They achieved permitting requirements from the regulators in Colorado that necessitated us paying that $87.5 million milestone. In layman’s terms, they achieved what they set out to achieve. There is ongoing dialogue by Newmont with the regulators to consider the overall long-term plan for the Carlton Tunnel discharge, including whether intervention, such as a water treatment facility, is required. Under our deal, that long-term management remains on Newmont’s account. We are a stakeholder, but Newmont is leading the discussions.
Cosmos Chiu: On Copler, your guidance was about $80 million to $100 million in care and maintenance costs budgeted for the full year. If I take your free cash flow in Q1 of $211 million versus $175 million, the difference is about $36 million. Is that related to care and maintenance for the quarter? It seems a bit high given prior guidance of $20 million to $25 million. What should we expect in Q2, and when will it stop—only upon closing?
Michael Sparks: A couple of points. In Q1, there are a number of tax and license renewals, so Q1 care and maintenance and other costs are always a little higher. The original guidance of $20 million to $25 million would be what I would use for Q2. We will maintain care and maintenance and ongoing support through the closing of the transaction. For modeling, use that $20 million to $25 million estimate per quarter until we announce close.
Cosmos Chiu: What else needs to be completed for closing? Due diligence is complete; what remains?
Rodney Antal: The on-the-ground transition work and cooperation with the buyer have been excellent. The remaining items are regulatory approvals, particularly through the Ministry of Mining and Energy. Once those are achieved, we can close the deal. We expect that by the third quarter.
Operator: The next question is from Don DeMarco with National Bank. Please go ahead.
Don DeMarco: Good evening, Rodney and team. First on Seabee. Guidance is on track, but can you provide any incremental color on the Q1 costs beyond the cold weather impact? Should we model a step change to lower costs in Q2?
Rodney Antal: Stepping back first: at the end of last year and into the first half of this year, the real focus at Seabee is development, which continues through this quarter. We will see incrementally better production as the year progresses, but it is fourth-quarter heavy in terms of production uplift from the development we began in the second half of last year and continued in the first half of this year. Costs and AISC will average out over the year as we bring ounces back within the guidance range. We are incurring costs during development while production in Q1–Q2 is lower, stepping up into Q3 and then a strong Q4.
Don DeMarco: So Q1–Q2 might be above the top end of the AISC guidance range, and Q3–Q4 could be below the lower end. Is that fair?
Michael Sparks: Yes, that is right. Also remember a good chunk of Seabee’s costs come via the ice road, so Q1 is always a little higher. As production increases through the year and we move past the ice road season, that will normalize.
Don DeMarco: On Hod Maden, can you remind us what your book value is for this asset?
Michael Sparks: I do not have that at hand, Don. We will get back to you on that.
Don DeMarco: Finally, on M&A: you mentioned the Americas. Do you have a bias in terms of stage or jurisdiction? Given your cash balance, would you favor development projects? And within the Americas, does that imply North and South America equally?
Rodney Antal: We look across the full lifecycle, from greenfields—often around our current assets—through brownfields development to producing assets. No strong preference by stage; the key is strategic fit with our long-term vision and the value we can add. Each opportunity is unique. We have a reputation as strong discoverers, builders, and operators. Our current preference is North America to build on the lower-risk ounce base we enjoy with Marigold, Cripple Creek & Victor, and Seabee, while not forgetting our platform in Argentina. The environment in Argentina has improved for foreign investors, and it remains underexplored, so we will continue to look there given our established presence. But the near-term focus is North America and building around our existing platforms.
Operator: This concludes the question and answer session and today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.