and we have further growth initiatives that will be supported by the exploration successes that we are achieving.

We're trading at a very attractive valuation. We received an offer to sell the company in January for $44 per share. Today, many months later, we're more advanced and a better company. We have delivered on our plans that improve the company and increase that value. I'm comfortable saying to everyone on this call that we present a unique and strong value proposition. So in terms of upcoming milestones, the startup of operations at Kermuk, a further exploration update in the fourth quarter, further advancement and what we will say about the Sadio next phase expansion by the first quarter of next year. We expect a site visit of our Kermuk operation for sure in the first quarter of 2027. We're completing the steps that are required at Sariola, including the installation of the pre-leach thickener and the power solution, including solar, that will improve that operation for the next phase of our modular expansion. And finally, the startup of operations and ramp-up at Kermuk. No, I did not make a mistake there. I duplicated the point for a reason. We're at the startup of operations at Cremoc, which transforms this company in terms of production and in terms of cash flows. And with that, ladies and gentlemen, let me open the call to questions.

Thank you. We will now begin the question and answer session. So if you have dialed in and would like to ask a question, please press star 1 on your telephone keypad and raise your hand to join the queue. But if you would like to withdraw your question, simply press the star 1 again. If you are called upon to ask your question and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, please press star one to join the queue. And your first question comes from the line of Ralph Rafferty of Stifel. Please go ahead.

Ralph Rafferty of Stifel Thank you, operator. Good morning. Thanks for taking my questions. Peter, can I ask about some of your recent experience in Mali on the ability to repatriate capital in and out of the country and how, if any, has there been influence on sort of in-country capital allocation decisions?

The in-country capital allocation decisions, Ralph, have been based on prudent business practices and prudent business decisions. It is not the result of restrictions on our ability to repatriate capital. None of that. Again, I'm glad you're asking the question because that goes to the fundamental theme of the quality of jurisdiction. There are no restrictions on repatriating capital. We have flexibility in how we mine. We have a large volume business. Mining is a large volume business. Some of you on the call have heard me say that when you're bringing to site more than 100 fuel tankers per month for our fuel requirements, that's a big volume business. And a big volume business like that cannot function if we were to accept what is said about the country on the headlines. The headlines are not correct. This is a functioning country with functioning businesses and one of those businesses is ours. To answer your specific question, We have no restriction in terms of repatriating of capital, but we have a business plan to invest back into the country, to invest back into Sediola, to demonstrate that this is a tier one mine.

Thank you for that. And as a follow up, Peter, when I look at the 2027 I guess preliminary guidance for Kermuk. It looks to be a very efficient flow sheet with that type of production target. And I'm just wondering what's been your team's experience and what can we expect on their feedback on how long it's going to take to substantially reach Long-term target recoveries and things like operating costs, that initial six to nine months of ramp up, what does that look like in terms of quality and grade of that initial feed into the plant to get us to that target or somewhere near it?

Ralph, there's nothing unconventional in the design here. It is an open pit. We've opened up to ore. We have stockpiles at surface. We're meeting the grade expectations. We don't see any challenges on recoveries. And while the ramp up is within that range of four to six months, we're also blessed with higher grade upfront. One of the reasons why we have not said what we expect the production level to be this year is a positive, not a negative. We expect to produce, because of grade, 30,000 ounces per year. That's why. in the first handful of years, we have a production platform that is at or close to 300,000 ounces per year, not the average of 240,000 ounces per year. But that also means that if we're in production in early September to mid September to late September, we expect to be in that range of early to mid September. That will make a difference in terms of what the production is for this year, but not to the value and not to the number of ounces of production next year and in the years to follow. So we are blessed with great, that is higher closer to surface. We have a ramp up that I believe to be on the conservative side. And the result of GRADE, the result of what we see in recoveries, the result of that gradual ramp up gives us a high confidence level that will meet the production goals that we expect, that we indicated for next year and the years to follow.

Okay. That looks impressive and thank you for those important answers.

Your next question comes from the line of Luke Bertaggi of CIBC. Please go ahead.

Thank you, operator, and good morning, Peter and team. Congrats on the quarter, a really standout job in Côte d'Ivoire. I just had a question on CREMAC. Can you provide a bit of an update on how the mining activities are going? In particular, how is it reconciling with the block model? And perhaps if you could give a little bit of details on the grade and quantity of your stockpile.

Hi, Luke. This is Gerardo. Yeah, in terms of reconciliation, we're doing really well. We updated that model several months ago in anticipation of the start of operations. We did delineation drilling, and we're really pleased with the results in terms of great control of reconciliation. We're tracking well also on the volumes. We have reached the high-grade zones of both Dish and Ashashiri, and we're quickly building the stockpile on high-grade. We have three categories. Our main categories of grades and that we will be using as Peter was describing for the ramp path as we are increasing the throughput through the plant.

Thanks. Thanks Gerardo. And then just a follow up question there. Previously, you guys had identified the state build transmission line as a key milestone for the startup timeline. Can you comment on the status of that grid power connection today?

Yeah, Luke, what we

mentioned that not as a gating item or as a critical path item. We mentioned it because we have a 20-year power purchase agreement at 4 cents per kilowatt hour for the benefit of those on the call. That's one half of what one pays in Quebec. It is one quarter of what one pays in Canada, all of which is hydroelectric power. So we were trying to highlight that this is one of the factors that allows us to be able to get production at the very low cost that we're anticipating. The power line will be up and running for us to be in production. But we want to make sure that it's clear. We need full power by November, not by September. And so we're perfectly on track to be with power by September. So whatever we need by November is not expected to be a gating item, not expected to be a critical path item. We're looking forward to having you and others if your time permits. on our mine tour that we're planning sometime, as I mentioned, in the first quarter.

I think this asset will show very well.

And your next question comes from the line of Kerry McCreary of Canaccord. Please go ahead.

Hi, good morning, Peter. Just wondering if you can come back to Kermuk and just if you can talk a little bit about sort of what the major items left are to complete there.

Hi, Kerry, Gerardo again. We are busy on C1 and advancing C2 and then getting, as you probably saw in the pictures, also with commissioning some units. So there is some instrumentation on mostly terminals and cable to pull in certain areas. As we are moving through those, we're also advancing the commissioning. So big focus on that. All the ancillary items are finished, or substantially finished. I'm talking about the TSAF that was finished, Waterdown finished, Hall Road is almost finished. It's usable now, and we have other access, as you know. Yeah, so all key things are coming together. Crashing will be operational pretty soon, and I think it's substantially complete, and we expect to start crashing rock in the next few days, few weeks.

And then just coming back to grade, you mentioned the three categories of grade. Just wondering, just for our benefit, how you classify high grade at Kermuk?

I think we are over 1.5, if I recall correctly, and between 1 and 1.5. If you look at the life of mine profile and the technical report, you will see what grade is available in the beginning and how that changes. We're following that profile. We expect to follow that profile quite closely.

Great. And then maybe one for Jason if he's on the line. You had a big cash tax bill in the quarter. Just wondering how we should think about cash taxes for the back half of the year.

Yeah, Q2 is always our big cash payable quarter, Ralph. It's just the profile of the jurisdictions that we operate in. So, you know, that's 75% of our total cash tax for the year was in Q2. So, I don't know, maybe it's $15, $20 million per quarter going out here. That's it for me.

Thanks, guys. And Jason, our cash taxes were at the level that they were at because we were profitable last year, and so we're paying more taxes for the profitability.

Exactly, yeah.

And once again, if you wish to ask a question, please press star 1 to join the queue. And the next question comes from the line of Mohamed Sidibe of National Bank. Please go ahead.

Hi, Peter and Tim. Thanks for taking my question. Maybe just a follow-up on the comment you made on grades, Peter. Did I understand correctly that the potential update on CRMU could be actually on the positive due to the higher grades that we could be expected compared to plan, or did I misunderstand that? Thank you.

What we are saying is that because the production profile on the month-to-month basis, because of the higher grade closer to surface addition, the two initial deposits, it's difficult to say to the end of the year if we expect to produce 80,000 ounces, 100,000 ounces, or 120,000 ounces. If we are in production in early September, then 30,000 ounces per month gets us to a point of 120,000 ounces. that's what we were trying to say and nothing more than that.

Perfect, thank you. And then just a follow-up on Chromebook there you know understanding that the power line is not critical should we assume you know I think you noted in your MD&A that the power line should effectively meet the start of the ramp up at the asset there but should we assume that you have enough diesel genset and fuel capacity at site to mitigate any potential delay there?

We have sufficient Supplies for us to be in production this quarter.

Okay. And final question on your balance sheet, you know, following the investments from Dijon. When we're looking at your balance sheet in Q3, how should we think about your capital allocation priorities, you know, into 2027? Is this more of a potential acceleration to phase two, I said, Jola, or maybe initiatives in Ivory Coast, or is it potentially to free up capital towards some capital return program. But how should we think about this?

Look, think of it as all of the above.

With the balance sheet that we have organically, then the expectation is that cash flows will have to build into cash balances before we're in a position and deploying that capital in 2027 for what we expect to do at Sadiola for 2029 to 2032, as I mentioned, that 275,000 ounces plus production. So we expect to deploy capital and we will build up the cash balances. And with the excess of cash flows above what we are spending, we would expect, as we have done before, as we've said before, we're implementing a dividend policy. But the best way to look at the Thank you very much. So the result of all of that is that we're actually, this acts as an accelerant, all of that. I cannot say to you that we will advance the projects more quickly because that requires the discipline of making sure that we've done the detailed engineering as we said in our MD&A we're doing. Once we've completed that engineering, then we're in a better position to be able to say this is what we intend to do. It's more sustainable, it's more precise. So I don't think that we would be advancing That was a great caller. Thanks a lot for answering my question.

And there are no further questions at this time. I will now turn the conference back over to Peter Marrone for closing remarks.

So, ladies and gentlemen, my apologies for my voice. I am suffering a little bit of the back end of a cold, but thank you very much for the time. We are happy to be back on these conference calls and we look forward to further updates throughout the course of the rest of the year. Clearly, the most important, as I mentioned on the formal presentation, being the startup of operations at Kermuk. And we do look forward to seeing you with our Q3 conference call and then with the end of year. Thank you again.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.