Discovery Silver (TSX:DSV) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call.

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Summary

Discovery Silver reported strong financial performance in Q2 2026 with record revenue of $319 million, driven by higher gold prices and increased production, notably from the Kidd operations.

The company achieved record gold production of 67,300 ounces, a 12% increase from Q1, with improvements in mining and milling rates across all operations.

Strategic initiatives include the acquisition of Kidd operations, which is expected to significantly contribute to future growth and operational optimization.

Discovery Silver is advancing exploration projects with promising results, especially at Pamour and Dome, suggesting strong future production potential.

The company maintains a solid financial position with over $600 million in liquidity and plans for substantial capital investments to drive growth.

Management expressed confidence in achieving the 2026 guidance and emphasized ongoing efforts to optimize operations and reduce costs.

Full Transcript

Alexandra, Operator

Good morning. My name is Alexandra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Discovery Silver Second Quarter 2026 Conference Call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question, press star followed by the number one again. Thank you. I will now turn the call over to Mark Utting, Senior Vice President of Investor Relations for Discovery Silver. Mr. Utting, you may now begin your conference.

Mark Utting, Senior Vice President, Investor Relations

Thank you, operator. Good morning, everybody. Thank you very much for joining us on Discovery Silver's second quarter 2026 conference call and webcast. As you just heard, I'm Mark Utting, Senior Vice President, Investor Relations. Joining me today are many members of Discovery Silver's senior executive team. Speaking today will be Tony McCooch, our President, CEO and Chairman; Allison White, our Chief Financial Officer; Duncan King, our Senior Vice President, Canadian Operations; Gord Leboy, our Senior Vice President, Mineral Processing; Carol Bird, our Vice President, Mineral Processing; Eric Calio, our Senior Vice President of Exploration; and Jose Haballera, our Senior Vice President in Mexico. We'll then turn it back over to Tony for concluding remarks. Just before we get started, as always, I'll remind you that during today's call we will be making forward-looking statements. These statements are based on current expectations and projections about future events.

These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward-looking statements, and for more information, please refer to slide two in our slide deck as well as other disclosures on our website. In addition, we will also be making reference to non-GAAP measures during the presentation. These measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to other issuers.

Slide three in the deck deals with cautionary language around non-GAAP measures. Lastly, for me, all dollar amounts today will be expressed in U.S. dollars unless otherwise indicated. With that, I'll now turn the call over to Tony McCooch.

Anthony Makuch, President, CEO and Director

Okay, thanks Mark. And good morning everyone. It's really good to be able to be here. Actually, you know, I think maybe before we started we had a really, I think, you know, we had a pretty good results in the quarter. Things went well or progressed well. I. I know that, you know, like there's a lot of stuff hiding in the background that maybe people all don't see and I don't talk about a lot of people did a lot of, a lot of good work. A lot of people that did a lot of good work.

Some of the results aren't really shown in this quarter. You'll be seeing them in future quarters. But you know, you know what we talk about and all the, all the benefits that we, that we see and all the, all the results you see it's really, you know we get the chance to talk about it and tell you about it but there's a lot of really good people working in the company throughout the operations and they're the ones who did all the good work. So you know, before we start thank them for, for the results and you know and we recognize really what, what everybody's doing.

So stay, stay tuned. We got, we're going to talk about good things that happened here but stay tuned. There's still a lot. Sorry. Anyway, I'll start with slide four. This is a slide that we, we've used a lot in the past to try to you know, show things in terms of where we are in value creation and HOX butter growth to over half a million ounces of gold in production over the next three to five years. It looks at our potential for Cordero and what we think we can bring with Cordero, you know, 14 million ounces silver production rate but you know, on an equivalent silver equivalent basis depending on silver prices.

There's significant zinc and lead production there and definitely you know one a world class silver project in Mexico. Just waiting for a permit and then looking at a gold business, you know and what we're doing, we now believe that has the potential to be significantly greater than what we show here. And you know that's a forward looking statement that Mark talked about earlier. And during this presentation we will show you why we are confident that this can be achieved.

Going to Slide 5. You know, second quarter was favorable and we did have a lot of good works and you know definitely we've done a lot of progress in advancing our growth plans and you know, and maybe there were three key developments during the quarter that really highlight when we did first we completed the acquisition of Kidd operations. Second we. Second we continue to achieve outstanding exploration results. And you know, we know and on the exploration results like you know we originally were putting all one press release.

Now we put out three press releases in the last three weeks. You know, instead of lumping them into one. There's so much good information. All we realized we, we probably have to start presenting them each individually and you can see this excellent job results at all of our exploration targets and we expect that to continue. We really think that this is as much of a. As much as this is a production and business story and a going concern operation that financially viable.

And as much as this is a growth story, this is me this could be an exploration story as well on steroids. And you know so, so it was. We had a lot of good exploration results and and we did ramp up our investments in in the quarter and and then we've had Stephanie, you know we're focusing on trying to improve our operations but you know going to slide 6 this looks at the Kidd acquisition. You know. You know I think when in our last call we did talk a lot about it about it but you know if summing it up we know the growth we talked about that this is the really a big enabler besides the exploration, besides the you know had the people and what we're doing doing in the porcupine camp. But besides all the geology etc. That we see here and the infrastructure in place, you know the acquisition of the Kidd operations really helps us to achieve the growth that we're targeting over the time frame that we plan to achieve it. You know and, and a big part of it is the Kidd metallurgical site and and what we can do there. And we'll probably be talking here more and more future as the year progresses in terms of the benefits of that we're not going to get into too much of the details of that but you know that, that, that was a significant acquisition that really enables us to move forward and you know, and you know, maybe you know, you know when we talk about it there's a current processing capacity there. But for us to grow our operation optimize Hoyle Pond more without this infrastructure and the geography, the land position, the power, the water that comes with operations. Maybe I can, I can talk too long, maybe I shouldn't and this is a very important acquisition for Discovery Silver. Slide 7 shows, shows what we know from from the last quarterly call and sort of gives a sort of concept that lays out our plan construction new conventional gold circuit incorporated into space.

That was the A division. You can see that some of the conceptual diagrams of where the infrastructure will go where we are currently reviewing what this circuit will look like and our advancing engineering design work. And I can tell you that we have moving parts exploration success and sort of our productivity rates that we might design for. There's still a lot to being added to the story. So we got a lot of blank pages we might Have a lot of headings on chapters written in the book.

But all the content is being rewritten as we speak in terms of what we're doing there. The B circuit, you know that's at Kidd. There is four circuits as we've talked about before. The B circuit will continue to be used as a base metal circuit now processing the Kidd Creek material at least for 2026 and all of 2027 for the C circuit. You know, we are doing test work now and we expect that this circuit will be used to process Borden ore starting. So sometime, sometime next year and we don't wait.

We see this. This could add sometime something up to 40,000 ounces in annual production just in our current form, you know. And where do we get that from? Well, it will add 2000 tons a day of added availability at Dome. We can see improved metallurgical recoveries at all at the ores processed at the Dome mill currently. Plus we think we're going to get improvement in recoveries from Gordon. Right. And it also gives us the ability to process higher levels of Borden ore at Kidd.

So maybe it gives us the ability to increase productivity from Borden because we were limited how much Borden ore could be intermingled into the into the gold circuit at Dome. And you know, with the Kidd metallurgical site we also investigated future plans for the D circuit. Our goal would be to have the TVZ and or other materials processed here. And you know, so we still have a lot, a lot, lot to work there but really, really an enabler in a lot of slide 8 looks at the exploration and I mentioned we had three press releases over the last few weeks, all with excellent results.

Eric's going to talk about this later so I know I'll just focus on a couple of things and maybe highlights. You know, we're excited about Pamour. Based on recent drilling and you know, tied into past drilling we've established that the mineralizing system over we've identified over strike length of more than 4km. The system remains open in all directions and at depth. And you know we've talked previously about the depth potential in this region of the camp in terms of depth of Hoyle Pond where it found a 162000 meters I should say.

And you know, and the depth that was at the Hallmark project which is on strike on the same system. It's not a mine that we have but it was mined down to 5,000. So there's significant upside here. We're currently working on a mine redesign for the Pamour Pit and We expect Pamour to become a much larger producer and you know with that, you know as I talked about earlier in terms of the processing capacity of what we might build at Kidd at Kidd Circuit to support a much larger open pit operation here.

And the other point that I'll make is that you know Dome is the second large open pit operation we expect. We have to bring online. It has transformational growth potential and by, by you know what we do at Kidd with, with the, with with the Kidd A circuit and being able to to move Pamour there. This enables the Dome mill in its current form to be used to process and to start the Dome open. This is again this, this is all future looking stuff. We do also have longer term the Hollinger McIntyre as a potential third large scale open Pit.

But again you know that's maybe we just. We just start with the Pamour and then see how Pamour goes to Dome. But you know we truly believe that the day may come when Discovery Silver operates three of Canada's largest open pit gold mines all located in the Timmins camp. Going to Slide 9. It looks at our Q2 capital expenditures. As expected. Our CapEx went up in Q2 totaling $86 million. That reflects our our progress on. On you know a number of fronts tailings.

We're advancing our tenants project at Dome to build up our tailings capacity. We continue to do pre stripping at Pamour our goal is. Is is to bring Pam to commercial production and we're investing in new fleets equipment and infrastructure will fall on important and we you know we expect to see further progress and further investments in capex over the years et cetera. And that's been our goal here to invest back into these operations to build, to not only build production but also, but also to improve the operating performance.

So not just growing production but improving performance and reducing costs, unit costs. Maybe I should highlight that better. In terms of slide 10. It highlights our Q2 operating performance. Again on this. I don't leave it for financial results for Allison to review. But I'll say that virtually every financial metric improved substantially from last year's second quarter. We achieved record revenue in Q2 2026. Adjusted earnings increased significantly compared to both period prior periods.

And speaking of record results, we achieved record goal production in Q2. Production increased over 10% from the previous quarter. Duncan and Gord will get into the details. But the increase was largely largely due to higher throughput. And a key highlight for the quarter was that both mining and milling rates showed strong growth at every operation. Finally for me in this part before I pass it on to Allison. Slide 11 shows our 2026 guidance and you know, again we tell you that we are tracking well to achieve all of our guidance for the year.

And with that I'll turn the call over to Allison.

Duncan King, Senior Vice President, Canadian Operations

Thank you. I'll discuss our production numbers and then ask Gord Levoy to review our processing performance during Q2. We achieved record production of 67,300 ounces, 12% higher than in Q1. Gold poured and gold sold were both 66,000 ounces. The increase in production was due primarily to higher tons processed, which more than offset the impact of an anticipated reduction in the average grade. The lower grade was largely a result of mix of mill feed.

We had a higher proportion of feed from the open pit sources and stockpiles. As Tony mentioned, a highlight of the quarter was our mining rate which increased at every operation. We mined 1.1 million tons during the quarter and ended the quarter with 1.4 million tonnes in stockpiles. Site-level operating cash costs averaged $1,878 per ounce, a 2% improvement from Q1. Site-level AISC increased to $2,028 per ounce, with the increase entirely due to the pickup in sustaining capital.

You may recall we were below plan for sustaining capex in Q1 mainly due to the timing for the delivery of our mobile equipment. We made up a lot of that in Q2. I'll now call on Gord Levoy to talk about the milling.

Gord Levoy (Senior Vice President, Mineral Processing)

Good morning. We milled 904,000 tons in Q2 2026. That was up almost 30%. Some of the issues we had in Q1 in the crushing circuit did impact to some extent in early Q2, but overall the mill performed much better for the quarter. We exceeded 11,000 tons per day on 49 days in Q2 and we exceeded 12,000 tons a day on 11 days. Supported by the higher throughput, our milling costs for the quarter were $21.50 per ton, 14% better than in Q1 and just slightly higher than our best quarterly average to date of $21.20 per ton in last year's third quarter.

I'll now turn over the call to Harold Byrd, Vice President of Mineral Processing, to discuss the Kidd Operations.

Harold Byrd, Vice President, Mineral Processing

Thanks, Gord. Good morning. Overall, Kidd Operations had good performance in the first month since its acquisition, contributing positive revenue of $30 million versus production cost of $19 million. Kidd's growth capital primarily related to tailings buttressing and mill modifications to support the processing of Borden ore, which is targeting to begin in the first half of 2027. Further study work has commenced to expand the Kidd mill to process Pamour in future years.

Kidd Operations continues to be a safe, reliable operating mine that currently has a total recordable injury frequency rate of zero. And now I'd like to turn the call over to Eric Kallio, our Senior Vice President of Exploration.

Eric Kallio, Senior Vice President, Growth and Exploration

Okay, thank you, Harold, and good morning, everyone. I'm on slide 18 and happy to say there's been another good quarter for exploration. Excellent success at operating mines and new growth projects. With this in mind to look at. But I'll start here with Pam Moore where we drilled another 47 holes. We continue to obtain some very exciting new results shown in the image. The main focus here has remained on three main targets including the main pits, Primor West and the north contact zone.

Additionally, we added a new targeting to the next. It's called Korra Trend and which is located west of the main pit. Results for each of the areas are shown in the current image indicated extremely positive with some of the best results seeming to come from the main pit, including highlights of 305 over 30 meters and 208 over 2.08 over 24 meters. We continue to see strong results from the Pamo West and north contact areas including several holes, multiple zones and excellent grades and widths.

And then finally we have the QR Trend where we're very happy to report a high grade result of 17.36 grams per ton over 5.9 meters in the very first hole drilled 200 meters west of the current resource. Now turning to my next slide, number 19, you see the first of two images providing different angles for the areas drilled. With this first one looking to the north, we focused on the south side of what's called Panmore Trend. Key things to note here are the main PISC and Panmore West areas which are on the central and left sides of the slide, as well as the overall size of the target area which we're looking at here, which at this point measures a little over 4 kilometers long and at least 400 meters deep. Also notable is the very shallow depth of drilling to date both areas and the large areas still remaining to be tested below and between. Then turning to the next slide which is number 20, you see a view looking to the southwest providing a better view for the north side of the train. Key things to note here would be the current resource fit which sits in the background as well as all in intersections in the north contact and Kiara areas which sit directly to the north.

Also provided here is another good angle of the Pamor West area. So given all about we're very pleased with progress today. The Panmore drilling is continuing here with four hills. Additionally work has now begun on a new resource update and on track for this year what we believe will be a very positive result. So then going on next to slide number 21 we see the Dome which was another project which we believe has a lot of potential. As previously described, Dome is a historic mining property which already has over 17 million ounces mined and where we have a resource of over 11 million ounces.

We're also now working to upgrade and extend for an updated estimate this year indicated on the image. All the new drilling is in the area surrounding the current resource with focus on areas to the southwest, north and northeast portions of the property. The results continue to look very encouraging. Drilling in the southwest portion of the property, there's nine holes to evaluate mineralization near the south limits and continue to indicate excellent grades and widths at very shallow depths.

This needed had eight more holes in the north part of the property and under north wall of the pit which were also very successful with multiple excellent intercepts including the highlight of 9.09 over 17.3 meters. And then finally we had one new hole to the northeast intersecting quartz gain near the east limit and containing a very high grade assay of 278.48 grams. So then turning to my next slide 22 you see another image related Dome which provides two different viewing angles across the target area and a little more detail on the new results with the one on the top covering the south part of the pit looking northwards and the other covering areas to the north and looking west. These things to note here will be the red and blue outlines which represent current pit shells and underground workings as well as the shallow depth and excellent grades and widths in both areas to remain open for future testing and expansion. So with this I'll conclude by saying that similar to Tammor, drilling here is looking very good, continuing with two drills, two to three drills. Work has also now begun on a new resource update and on track for year end.

So then turning on to my next slide 23 we see the TVZ where we also had very good progress. As described in the past, TDZ is a significant zone of mineralization in the southeast part of the pond that was partially drilled and defined by past operators which remain in south drilling to support and made an estimate for later this year. Shown on the screen there are two different angles on the deposit with both being long sections and providing different levels of detail.

Turning to the one on the left you see more of an overall view of the size and shape of the zone as indicated. Looking at a large northeast turning structure just south of the mine between 850 and 1700 levels and where mineralization is contained mostly in a series of lenses that are highlighted here in a variety of colors. Also important to note here on this slide is close proximity of the zone to the current mine workings and location of various drill platforms including 1210 and 1680 levels which we have been using for most of the drilling to date.

Referring now more to the right hand side we see details for the new drilling which as indicated are all located has been focused really on the 1210 and 1680 levels and looking very positive. And just to give you a few examples, what we're seeing basically looking at values of 5.13 over 18.27 over 16.9, 5.7, 5.17 over 21. Important to note that all of these intersections are similar to or better than previously drilled holes in these areas. Aside from the above, I'd also like to point out as part of the latest program, work is also initiated collect samples for metallurgical testing from holes near the 1210 with a total of four samples now collected and shipped out with results expected later this year. In the above we're very happy with the progress so far. The program is continuing with three drills on 1210 and 1680 levels. Turning now to the next slide which is 24, you see Owl Creek where we completed another 10 holes and continue to confirm and expand mineralization near the Owl Creek pit. Just for context, the Owl Creek pit is located 1.5 km west of Pond Mine on the south side of the Falkland Belt which is the same contact that holds the mine, that's the tent as well as two underground ramps which you see here on the image were both developed by Falconbridge Gold in the 1980s.

Shown on the screen are two images with the one on the left being a plan of the drill area and the one on the right being a long section providing more details. Turning to the left we see the new drilling targeted two main areas on the east and west sides of the pit and continue to obtain very positive results with some of the key values on the east side being 7 grams, 7.09 over 17 and 6.35 over 9.4. Highlights to the west 4.72 over 24 and 19.35 over 5.4.

So turning now to the right side we see a view looking northwards across the zone and giving again another angle on the results and showing the overall pattern of holes going to depth from west to east. Important to note here is the holes on the left are the ones drilled directly below the pit and the ones on the right are what we call inches of wide high grade zone. Also important to note here is what we think is very good continuity between the areas and limited drilling which exists below the 650 meter level and in areas going to the east.

In terms of current activities, drilling is continuing here with two drills on site focused on further confirmation expansion. Additionally, in light of the good success, work has now been initiated on a new exploration ramp from Ho Ho mine which will allow more detailed drilling both here and in the areas between. Although not shown in the image we expected the ramp enter the zone from the east side near the 300 meter level and allow quick access to the zone.

The expected completion date is in Q3 2027. And then turning to slide 25 we see an overall view of the Borden mine where we have also been very busy as described in the past. Borden is located west of Timmins and tension on the major east west triment shear zone called the main zone which has now been traced and part of mine for distance of over 2 km. In terms of recent exploration pretty much all work is focused on the far east side and on extending the main and east lower zones from platforms underground near the 585 level as well as from surface northeast of the mine of the main zone.

In terms of results they've all been very positive with excellent gradeful width both within and outside the current resource sheets in both zones targeted, some of the key highlights from underground reaching levels such as 9.16 over 29.0 meters and the highlight of the program I think a new intersection on surface of 6.34 over 8.7 500 meters down plunge from the invert resource. So then moving on to slide 26 I have one more image related to this area which is a 3D looking northwards across the area drilled showing more detail on all the new holes.

Key things to note here might be that all the new holes were drilled from the 585 level which is the green line at the top of the drawing and targeting at and beyond the current limit of the infrared resource which is shown here in light blue. I'd also point out locations for new surface hole the L26 through 1119 which is in the far left side and located 500 meters from the current resource. So with this being my last slide, I'd just like to say in summary, things still continue to go well and a lot more to come.

So with that I'll pass over to Jose Cavalera, our VP Corporate Affairs and Sustainability, Discovery Silver.

Jose Cavalera, Vice President, Corporate Affairs and Sustainability

Thanks, Eric. In Cordero, on July 24th we received an official visit from senior level Semranaut officials with very good outcome from the project and from the visit. So we right now are in the final stage of the environmental permitting process. At the same time we're continuing with the studies to update capital and cost estimates as well as more detailed studies.

Anthony Makuch, President, CEO and Director

And it's on, hopefully, the last slide. Well, not hopefully — last slide. It'll be the last slide, Slide 28. And you know, I think you get a sense there's a lot of things going on where they've operated — farm separation, development — a lot of exciting projects here. And this slide, and really this is a slide that maybe we put together when we first started with the acquisition of Porcupine. With Discovery, we tried to show how gold production could grow to well over half a million ounces a year.

And by the way, this doesn't include Cordero in here, which is even over and above that. But you can see from our Q2 results that the results will be achieved in exploration, the acquisition of Kidd, our continued investment in operations. You see how we're demonstrating what's going on here — that we're taking the vision from concept to reality in terms of what we can build and purchasing, building Discovery as a whole. Looking at the slide, you know Pam, as we talked about, now expected to become a much larger mine than the 150,000-ounce-a-year producer outlined in last year's technical report that we showed — 150,000 ounces a year up to 2047. I think in the report, as I mentioned, we are working on a mine redesign for Pam and a new large-scale processing plant at the Cape to support this. This then unlocks the Dome mill for the gold mine, which at current levels or greater could produce over 200,000 ounces a year. We'll give you a better sense of what that looks like later this year when we update the resource. We also have growth potential at Borden, as outlined by Eric in terms of what he sees, plus the processing as we build processing capacity for Borden and then, you know, looking at the investments we're planning.

And then there's TBZ and Elk Creek at Hoyle Pond. We're planning an initial before IQ 101 resource for TBZ later this year and we'll continue working towards a resource at Elk Creek. There's still a lot of work to be done. There are probably some exploration targets — I know there are — that we haven't even talked about here. There's much more to our story lying ahead of us and a lot of exciting things to do. I think one of the things though that's also important, and maybe we should acknowledge — and Harold talked about the safety performance at Kidd and that TMIFR of zero — and I know there's been a significant improvement in our TMIFR in all of Porcupine operations, down to one. And so, effectively, we're running mines here — underground mines and open pit mines and processing plants — in the Timmins camp that's safer to work in than working at Walmart or working at Canadian Tire. So, you know, we're really proud of that and we want to maintain that as we go forward. Anyway, with that I want to thank everyone for being on the call and I'd be happy to take any questions.

Alexandra, Operator

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Larry Liu with CIBC.

Your line is now open. Please go ahead.

Larry Liu, Analyst at CIBC

Hi Tony, Allison, Mark and team. Thanks for taking my question. I guess I'll kick off the first question with free cash flow. So free cash flow turned negative this quarter, but for very good reasons, right — for timing of cash flow from Kidd and other items. I guess my first question is: Can you remind us what are some of the upsides for the new enterprise resource planning system that was implemented and how that would help with further operation optimization from here?

Allison White (Chief Financial Officer)

Yeah, Larry, I'll be happy to take that question and talk about the benefits for us in implementing the new system. You may recall that when the company acquired the Porcupine operations, there was an agreement to utilize some of the ERP system with Newmont, and so the company then simultaneously set up its own instance of SAP. That SAP instance will allow us to have a lot more flexibility as well as a lot more visibility into the cost structure for all of our operations on a go-forward basis.

It's also going to be in our full control since it's a Discovery-implemented instance that has been set up with the full complement of everything that we typically look at and that we typically like to track. So we are anticipating that we will see some additional value going forward. We also will be able to have a little bit more granularity into the business that the whole management team is used to seeing, and we'll be able to provide some additional clarity on all the growth that's coming in the future.

Anthony Makuch, President, CEO and Director

Yeah, I mean, really in summary, we've been operating under the code of accounts and the accounting practices that were limited to how SAP was set up under Newmont. We can now implement it more in our way, as Allison mentioned. And, you know, we have a different view on our management accounting and how we can account for things. So we see that as a big value driver in terms of how we can turn the finance team and accounting team into profit centers for the company.

Larry Liu, Analyst at CIBC

Yeah, no, for sure. Good to hear that things are being done the Discovery way — doing it the best way possible. And I guess kind of on that note as well, Tony and Allison, can you remind us what's your view for Kidd Creek, both near term and longer term? I know this quarter, because of timing of cash flow, the operation had a little bit of negative free cash flow. But for the rest of the year, should we still expect a positive free cash flow, and how does it help with the operation or hitting that 500,000 ounces in the near to medium term?

Allison White (Chief Financial Officer)

So, Larry, this is the first and only month that we'll see this cash flow differential that we did see. Because of the timing of the offtake agreements and the way that the sales agreements were structured, the cash is remitted back to the organization in the following month after the sale. And so because the transaction occurred as of June 1, and this quarter ended on June 30, we do see that gap in terms of sale versus cash remittance. But on a go-forward basis there will always be a one-month lag, but it will be a constant one-month lag, and we will have that catch-up in terms of cash and sales on a go-forward basis.

So we'll still be a month behind in cash collection, but that will be something that you'll see roll into the overall financials on a go-forward basis.

Anthony Makuch, President, CEO and Director

Yeah, effectively, as Harold mentioned, we had almost 30 million in revenue with 19 million in cost. So, yeah, the cash is going to come in a month later based on the offtake agreements and how concentrates get moved. But it really was positive.

Larry Liu, Analyst at CIBC

Amazing. Sounds good. Thanks again, Tony, Allison, for taking my question, and congrats on a strong quarter.

Alexandra, Operator

A reminder, if you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. I will now turn the call back to Mr. Utting for closing remarks.

Mark Utting, Senior Vice President, Investor Relations

Well, listen, thanks everyone for participating in today's call. You've heard we've got two key parts when we talk to the market that we address. One is the significant improvement you're seeing in performance as we go quarter to quarter and, in this case, particularly compared to last year's second quarter. But we also have a lot to talk about in terms of our growth story, which we think is clearly one of the best in the gold industry today. And on that, second quarter was a tremendous quarter for us, and we expect to continue to have a lot of progress and look forward to our next call when we can tell you about how much further we've come.

Thanks very much.

Alexandra, Operator

This concludes today's call. Thank you for attending. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.