Integra Resources Corp. 2026 Q2 Earnings Call

I would like to welcome everyone to Integra's 2026 second quarter operating and financial results conference call. Before we begin, I would like to note that we will be making forward-looking statements during today's call. I will direct you to the second slide of the earnings presentation, which contains important cautionary notes regarding these forward-looking statements. The cautionary notes can be found on Integra's corporate website. Please note, all dollar amounts discussed today will refer to USD unless otherwise indicated. On the call today, I am joined by Integra's President, CEO, and Director, George Salamis, Chief Operating Officer, Cliff Lafleur, Chief Financial Officer, Andrée St-Germain, Vice President, Finance, Sean Deissner, Vice President, Permitting, Dale Kerner, and General Manager of the Florida Canyon Mine, Greg Robinson.

Today, we are pleased to provide an operating and financial update for the second quarter of 2026, followed by a live Q&A session. With that, I would like to hand the call over to George to kick things off.

Thanks, Josh. Q2 was pivotal for the company. Florida Canyon remains the cash generator for Integra and the updated technical report and life of mine released in June demonstrates a bright future for Florida Canyon. The updated life of mine plan highlighted a longer mine life, higher annual production, and strong free cash flow generation. Nearly 2 years of operating experience have enabled us to develop a more realistic, stable, and executable mine plan that reflects the operating realities of the mine. The updated plan increases average annual gold production by 17% while providing a more consistent production profile over an 8-year mine life. Finally, strategic investments in fleet modernization and expanded heap leach capacity position Florida Canyon for sustainable long-term growth, lower operating costs, and continued value creation. DeLamar continues to advance through the federal permitting process under the National Environmental Policy Act.

With the public scoping period now complete and the Bureau of Land Management currently reviewing comments received on the project. In parallel, the company continues to advance detailed engineering and planning at DeLamar to prepare for future development. State of good repair initiatives are also underway on site, including test mining, crushing optimization, truck shop repairs, general site preparation, and other low-risk activities that will in fact shorten the development timeline and reduce execution risk at DeLamar in the future. With the improved exploration plan of operations received at Wildcat, exploration drilling is expected to start soon as we work on advanced economic studies. Now, turning to slide 5, I'll walk through our second quarter financial highlights before handing the call off to Cliff to cover Florida Canyon's operating results.

Q2 was highlighted by a strong financial position with $111.1 million in cash and working capital of $146.5 million. Operationally, the quarter was marked by record throughput of 87,867 total tons per day at Florida Canyon, resulting in a 30% increase in gold production quarter-over-quarter. Florida Canyon produced 16,379 ounces of gold in the quarter, generated revenue of $70.8 million, and operating cash flow of $22.8 million. The 45% increase in ore placed on the heap leach pads in Q2 has created a large inventory of recoverable gold ounces that supports increased production over the balance of the year. This has led the company to maintain its annual gold production guidance of 70,000 to 75,000 ounces of gold this year. With that, I will hand the call over to our COO, Cliff, to discuss the second quarter operating results for Florida Canyon.

Thanks, George. Turning to slide 6, we've outlined the key operating metrics for Florida Canyon in the second quarter of 2026. The second quarter showed strong operating results at Florida Canyon with a record mining rate of 87,867 total tons per day, achieved through the integration of new mining equipment into our existing mining fleet and shorter haul distances. In Q2 2026, the company mined 4.4 million tons of ore and 3.6 million tons of waste at a strip ratio of 0.81 for the quarter. Average gold recovery was 57.8% in the quarter, in line with expectations. Florida Canyon produced 16,379 ounces of gold in the quarter and sold 15,794 ounces.

Q2 2026 mine site AISC came in at $3,371 per ounce sold at the lower end of our revised guidance range, reflecting increased rates of mining, hauling and stacking, cost pressures related to royalties and excise taxes from stronger than anticipated gold prices, and higher diesel and explosive costs. Cash costs averaged $2,495 per ounce sold for the quarter. During the quarter, we invested $13.5 million in sustaining capital that reflects the company's continued reinvestment strategy at Florida Canyon. Spending year to date includes new equipment leases, capital stripping, and mobile equipment refurbishments. The company expects investments in sustaining capital expenditures to continue into the third quarter. The company also invested $0.8 million in non-sustaining capital this quarter.

The non-sustaining capital spent this year was primarily directed toward equipment leases for the expanded fleet, engineering and permitting work on phase 3C leach pad facility, and growth-focused drilling programs at the Florida Canyon Mine. Importantly, in the quarter, we released the results of our updated technical report and life of mine plan for Florida Canyon, which demonstrated a materially enhanced operation, highlighting a substantial increase in mineral reserves, an 8-year mine life, an increased annual production profile, lower operating costs, $600 million after-tax net present value, and approximately $770 million in after-tax free cash flow over the life of the mine. I will hand the call back to George to discuss the updated life of mine plan at Florida Canyon.

Thanks, Cliff. When Integra acquired Florida Canyon in 2024 for approximately $68 million, we saw a producing mine with significant upside, but also with limited remaining mine life and a relatively flat production profile. We have studied and learned a lot about the mine in the last 18 months of ownership. The updated technical report and life of mine plan has been greatly informed by what we have learned about this mine thus far. In short, in less than 2 years since the acquisition of Florida Canyon, we have transformed the operation into a materially different mine. The technical report shows that Florida Canyon will generate more than 11 times the original acquisition cost of $68 million in after-tax free cash flow. Despite mining depletion, proven and probable reserves have increased by 74%, from approximately 685,000 ounces of gold to nearly 1.2 million ounces of gold.

In addition, the mineral resource estimate has increased 128% in the oxide M&I category and 57% in the oxide inferred category. Mine life has been extended by 3 years and now has a total active mine life of 8 years plus 2 years of residual leaching. The annual gold production has increased by approximately 17%, from roughly 70,000 ounces to 82,000 ounces of gold per year. This transformation reflects extensive drilling, geological refinement, engineering work, and operational improvements completed since the acquisition. The updated technical report demonstrates a substantially improved operation. Here are the highlights. Approximately $770 million in after-tax free cash flow over the life of mine. This cash flow will be used to self-support Florida Canyon and fund growth elsewhere in the company. After-tax NPV of approximately $600 million using base case metal prices. 8 years of active mining with 2 years of residual leaching.

Total payable gold production of 685,000 ounces of gold. Life of mine AISC of approximately $2,331 per ounce. Importantly, these economics are supported by a mine plan that we believe is both executable and sustainable moving forward. This graph demonstrates Florida Canyon's strong after-tax free cash flow, which averages $90 million per year for total life of mine cumulative after-tax free cash flow of approximately $770 million. This robust cash flow profile allows for the expansion highlighted in the updated life of mine plan at Florida Canyon to be self-funded while supporting the DeLamar and Nevada North development project pipeline. Based on current estimates, we anticipate funding a portion of the DeLamar project pre-production capital expenditures with cash generated from Florida Canyon. Now I will hand the call back to Cliff to discuss our second quarter highlights at the DeLamar project.

Thank you, George. Turning to slide 10, DeLamar continues to advance through permitting towards a final environmental impact statement and record of decision in the second half of 2027. On May 29th, 2026, the U.S. Bureau of Land Management published the Notice of Intent for DeLamar in the Federal Register, initiating the National Environmental Policy Act review process, a formal start of federal permitting. The associated public scoping and stakeholder engagement process concluded on June 29th, 2026, and the Bureau of Land Management is reviewing comments received. In the second quarter of 2026, we also announced that we engaged Ausenco to lead detailed engineering and procurement for the project. This work has begun and will continue through the first quarter of 2027, with long lead procurement activities beginning in the second half of this year and continuing through 2027.

On the ground at DeLamar, the company has begun state of good repair work, which is focused on updating and de-risking existing infrastructure and optimization projects, like truck shop refurbishment, communications infrastructure installation, and crush optimization analysis. We are also pleased to have entered into an agreement with the Shoshone-Paiute Tribes to collaboratively design and implement processes and initiatives that address their respective interests in the DeLamar project. During the quarter, the company also advanced the Nevada North project, which consists of the Wildcat deposit and the Mountain View deposit. Decision record documentation for the Wildcat Exploration Plan of Operations was complete as of April 9th, 2026, and the reclamation permit for Nevada Division of Environmental Protection, Bureau of Mining Regulation and Reclamation was received on April 20th, 2026, with an effective date of May 5th, 2026.