Conference Transcript - MINE 2026-01-09

Operator

Good day, and welcome to the Mayfair Gold FENGIB Pre-Feasibility Study Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Nicholas Campbell, CEO. Please go ahead.

Nicholas Campos, CEO

Hi, thank you. This is Nicholas Campos, CEO of Mayfair Gold. I'm very pleased to be able to go through the 2026 FENGIP pre-feasibility study, which we put out in a news release yesterday. So, we'll be walking through a presentation, and if you do have any questions, please feel free to put your hand up when the Q&A section does begin. So we are going to be discussing some forward-looking statements, so it's important to understand that there's no guarantees in these things, but we're trying to give you guys the best information that we have and to lay out exactly how we see moving this company forward. So I think it's very important for us to give you an understanding as to how we've developed the strategy to move the FENGIP Gold project forward. We've identified a strategic pathway to getting into production. The FENGIP Gold Project does have a 4.3 million ounce indicated gold resource. But we, for us, we're a single asset junior development stage company. We've identified that, you know, probably the best way to get this into production is to advance this on a small scale, focusing on a targeted high-grade operation at the FENGIP Gold Project. This allows us to get this permitted through the Provincial Permitting Pathway, which is a much faster, much quicker permitting pathway versus the federal permitting process. It also comes with lower capital cost requirements, lower execution risk, and really it's the quickest way for us to get this asset into free cash flow and production and to get that producer re-rating during the current gold cycle. And that's really what has driven our strategy, which has been outlined in the pre-feasibility study for the FENGIP Gold Project. One of the things that really attracted us to this asset in the first place is just this is really one of the best locations and best access and infrastructure that I've ever seen at a gold development project. It's located in the prolific Timmins Gold District. It has highway access directly to site. Literally, you drive off the highway and you're onto the deposit. There's a power substation within 10 kilometers of the project. And you have nearby workforces in the towns of Matheson and in Timmins. This is a very active area. There's a lot of companies that are already active in the area. You've got McEwen Mining, which is 10 kilometers away. Agnico Eagle has the Holt Mill, which is 40 kilometers. It's a shuttered operation, which is 40 kilometers down the road from us. And for those of you that are following Discovery Silver and their acquisition of the Porcupine Complex last year, or I guess two years ago now, they're located near the town of Matheson, around 25 kilometers away. So a very active district, a great district to be working in for having people, services, access, and infrastructure. It's one of the best locations you can have to build a mine. And finally, I think it's also important to understand who we are. We are a management team that is very much focused on building a new Canadian gold producer. My background is I was previously with Artemis Gold and Silvercrest Metals. Both of those companies are companies that grew from single asset development projects into new producers with pretty significant success for investors involved. Drew is also involved in a number of different builds. Drew Anwell is CEO of the company who is also on the call. He was recently with Generation Mining, where he's CEO, and he successfully navigated that company through the Ontario and federal permitting process for the Marathon PGM project. Andrew was also heavily involved in the construction and build and commissioning and operations of Detour Lake, which is the largest open-fit gold mine in Canada. And we have a very different approach than most other companies do, or at least we feel like we're differentiated. We really do believe in aligning ourselves with shareholders. We've acquired over $15 million of insider purchases since October 2024. We're 35% insider-owned. We have a committed, significant, established shareholder base, which is committed to funding us through to production. through to production. So, these are significant assets. We are aligned with shareholders, and we've put our money where our mouth is, where we feel like we're investing in this because we see the upside associated with taking a single asset developer and getting that rerating as we develop the asset and move it into production. So, you can see here, you can see where we're located. The northern block is where the FENGIB gold project is, and that's where we have our established resource. We now have an established reserve of 1 million ounces. We're located next near Stellar Gold and then near Onyx Gold, near McEwen Mining, near Agnico Eagle. And if you go further down the roads west towards Matheson, you'll see Discovery Silver also nearby us there. So what we've really focused on is, and we did an audit in terms of, you know, what the permitting, what actually is involved in getting a federal permitting process done. And things did change in 2019 with IACC 2019. The federal permitting process did get significantly more complicated, and it was already a complicated process. And from our audit, what we identified was if we wanted to build a large-scale mine at the FENGIP Gold Project, it's about a seven to nine-year permitting process for a greenfield gold asset, which is what the FENGIP Gold Project is. And anything over 5,000 tons per day, it has to go through a federal permitting process. If you're going to be building that large-scale mine, your initial CAPEX is probably going to be in excess of $1 billion. The longer your permitting timelines, the more inflationary pressures can build up. The bigger the initial CAPEX, the more debt that you need to raise in order to do your project financing. It comes with substantially more risk. The construction periods are longer. that gives you more inflationary pressure, it gives you more exposure and added complexity when you're going through and executing the build. And quite frankly, if we're trying to create value and create a new Canadian gold producer, if we wanted to go and build a big mine, we're looking at probably being able to start production in 10 plus years. And there's not a whole lot that we can do through that process over the next 10 years to try and create additional value other than de-risking it and looking for a potential takeout and for us that's not particularly interesting so what we identified is our strategic path to getting this in production so we're going to be working with the Ontario government they've got a new process called one project one process which is a streamlined process for getting projects into construction getting investment into the province which we're going to be working with you have to design your mill at less than 5,000 tons per day in order to do that. And Fingib is unique in that it has this high-grade zone that we can focus on at the beginning of the mine life, which allows us to build a smaller-scale open pit, but it still has significant production and allows us to generate significant free cash flow. The difference is that the initial CapEx is substantially lower than if we were looking at a large-scale build. Our PFS outlined a $450 million initial capital costs. It's a relatively short construction period of less than two years. There's less financing risk because you're not having to really lever the entire company and add too much project financing. We're looking at something in the range of $250 to $300 million in project financing facilities, project debt. And the execution risk, every mine, and everyone should be aware of this, every single mine development project has substantial risk. Building mines is hard. It's a hard process to do. But when you're building a small-scale open pit like what we're looking at building at Mayfair Gold, it has a shorter construction period. It has less complexity. It is something that has much lower execution risk versus a large-scale build. And most importantly, we want to get this asset into production during the current gold cycle. We are in a generational gold cycle right now. We want to be able to get this asset into production to take advantage of current gold price within the current cycle and by going through the strategic provincial permitting pathway we think we can get this into production by 2030 and that's a big differentiator between us a lot of other development projects out there you can see this is just another way of illustrating this point if you're looking at a large scale mine and and some mines need to be developed large scale in order to be exploited you're looking at something in the range of 10 plus years to getting into production if you're just starting the federal permitting process. But by going through the provincial permitting process, you're looking at potentially getting something into production within four or five years, and that's really been the big driver and the refinement of our strategy for FENGIB and Mayfair Gold. You can see the highlights here. This is what we put out yesterday in the news release, and you can see that this is not a huge amount of production that's coming from the mine if you're relating it to sort of historical standards, but we're in a different gold price environment today, and the amount of free cash that can be generated by a small open pit operation is really quite compelling. So we've developed an asset that at $3,100 gold, and I'll focus on the first six years of operation, there's a 14.3-year mine life that's been outlined as part of the pre-feasibility study, but the juiciest part of the production of the cycle is the first six years. where your average grade is around 1.47 grand per ton gold. Your average production is over 71,000 ounces of gold per year. And your all-in sustaining cash cost is less than $1,200 an ounce U.S. And so you can see that asset, that operation itself, even the $3,100 gold, it can generate over around $896 million in cumulative free cash flow over the first six years. That gives you significant optionality to look at potential regional opportunities, to look at other development assets so you can fold into this company, and to look at reinvesting that free cash flow to build a larger-scale gold company. Now, that gives us some comfort and some downside protection. If gold prices were to come down, you know, there's still a very viable economic asset that we can move forward on. But we're not really building this asset because we think gold prices are going down. We're of the opinion that we're in a generational gold cycle. It's been going for a couple of years, and we think there's going to be legs to it for a variety of different reasons. And so you can also look at this asset at spot gold prices. So at spot gold, you're seeing that you have a project that can generate over $200 million in annual free cash flow per year, $1.4 billion in cumulative free cash flows over the first six years. And that is a huge difference in terms of what we're looking at today versus what we were looking at five years ago or 10 years ago. You can build a small-scale open-pit mine like this that can generate 70,000 ounces of gold, and you can generate exceptional returns and exceptional free cash flow. If you look at this at SPOT, you're looking at less than a two-year payback on your initial CAPEX. You're looking at a 38% after-tax IRR. And I want to highlight this. This PFS is only focused on a 1 million-ounce reserve out of a 4.3 million-ounce indicated gold resource. So there's still substantial long-term optionality associated with the 3.3 million ounces that have been excluded from the initial PFS reserve. And that's an important takeaway for shareholders on the call and potential investors on the call. You know, our goal is on creating a new producer on getting it into production quickly and on generating the free cash flow. It gives us the optionality to look at growing this into a larger scale gold producer over time. either looking at regional opportunities or potentially looking at consolidating and looking at other assets. I'm going to pass it over to Drew Anwell, where he can talk about the feasibility study here, some of these numbers, and just go through, you know, the processing costs and how he approached the first principles of getting these numbers together.

Drew Anwell, Analyst — Management

Yeah, thanks, Nick. Thanks, folks. So again, as Nick described, the PFS is really focused on the base case at $3,100 and $1.35. That being said, there is a spot price that he just reviewed. So the key things we're looking at from a production and an operating sense is the 14-year mine life. The daily throughput is modest at less than $5,000 a day. We do have a strip ratio that's relatively high, but we've also got an elevated cutoff grade. The elevated cutoff grade we're using for the PFS is 0.8 grams. So that allows us to get a life of mine average grade of about 1.3. And we see in the short term, in that year one to six, we're actually getting about 1.5 grams per ton. and with that within the first six years again key thing for us is very much on cash flow from that 71 000 ounces we do generate pretty exceptional cash flow when you look at the unit operating costs those are reliable those are our honest numbers i guess you'd say and i also noteworthy is a sensitivity table we've thrown that in because it is fairly important Thanks. Next slide, Nick. Look at the production profile and you've seen the first six years, the production is high, largely driven by the grade. And again, we stay consistent over the life of mine at 4,800 tons per day. Free cash flow, again, Nick flagged this in the discussions. We have a construction schedule that's about 24 months, so less than two years. And we have some early works that's also included in there. And you can see that the free cash flow and the cumulative cash flow is pretty impressive on the bar graph. And now when you look at the table that's below that, the cumulative free cash flow, that's very interesting because what we're doing is we're just looking at from an operating point of view, from a sunk cost point of view, ignoring the sunk cost, from year one going ahead, you see those cash flows on an annualized basis at the base case and the spot price. Nick, if you want to add additional color on that, I'll let you take over.

Nicholas Campos, CEO

I'll just, so what I would just flag here is you can see that, you know, the initial NPV to CapEx at 3,100 gold is 1.4 times, which isn't bad. And if you get to the spot price, you're looking at a 3.1 NPV to CapEx ratio, which is actually pretty good. But really what I think is impressive about this asset is, you know, even at a $31 gold price, you're looking at a 2.7-year payback period, less than a two-year payback period at Spock Gold. So really, this is a fairly straightforward build with very manageable capex and quite a short payback period. And I think that's a big differentiator between the FENGIVE Gold Project and other Greenfield Open Pit Gold projects in Canada, most other Open Pits, because of the access and infrastructure, you have to build that up yourself, and that adds to the initial capex that you're going to have to factor in when you're actually doing a – you have to factor when you're doing your payback period. Because we have all that access infrastructure already in place, it means that we can build it for less cost. It means that the payback period is a lot more attractive, and it means we can start to build up that free cash flow really quickly after you've paybacked your construction financing. I think we've already – Drew, do you want to just go through the initial capital costs and sort of how we went through it in terms of the contingency that was also included in there?

Drew Anwell, Analyst — Management

Yeah, so we have Asenko led the study. And the thing I like about Asenko is they're exceptionally good at studies because they've got a very good database. So we can benchmark a lot of work. And also Asenko is very good at constructability. And that's one of the key things for us. So we have gone through, again, the mining costs, that's equipment, that's some of the excavation to get started, which is also included in the owner's costs, and the rest of them are fairly straightforward. So on this study, it is a PFS. On the direct costs, we have a pretty reliable contingency of a little over 20-odd percent. I think it's 26% on direct costs. So we have calibrated the study efficiency and the study predictability, and we'll continue to refine that over the coming years. Just a simple site layout. Again, it's a very compact site. We wanted to keep it to a tight footprint. And what that allows us to do is that that manages our impacts, that manages the permitting efficiency. So you see the site is pretty tight And it also manages the cost as well Very simple flow sheet Again, we've got three-stage crushing Very modular designs we can implement We've got a single ball mill From that ball mill we'll produce 106 micron And again, we take that material and it floats exceptionally well And the gold is very much focused with the sulfides That floats well We'll take that concentrate that has been floated and we'll re-grind that down to about 13 micron and that'll allow us to liberate it through a cyanidation process so again it's a very similar flow sheet to young Davidson which is a little further further east of us and we're getting pretty reliable metallurgical recovery so for the first six years where our average average feed grade is about 1.5 we're getting roughly 90% recovery nothing's exotic about this this flow sheet which makes things a whole lot more predictable both from a cost point of view and an operating point of view in terms of the the schedules we're at work we're going parallel in three three three lines really design and engineering will commence with the the detailed engineering and then construction procurement and the critical path for us it is is really through the permitting process that we've already done about three years of baseline data so we've got a very solid understanding of what the environmental conditions are and we'll start that the Ontario permitting process and the the environmental assessment process we'll start that early in in this year and that that'll take roughly two to three years and in parallel to that we'll work with our partner nation Abitibi and Ishebek which is in which is about 20 kilometers away from the project site and we're directly in their traditional lands and we'll also deal with the town of Matheson and the other identified Indigenous communities so each of these three paths will go in parallel with the Ontario permitting process expected to be on the critical path.

Nicholas Campos, CEO

So, we've done some confidence drilling program within the high-grade zone at the FAN Give Gold Project. So, there's a couple of different rationales for why we've done this. And so, we're still waiting on some of the asset results. We expect to see some results come out by the end of the month. And it's important to know that these are essentially grade control, advanced grade control drilling programs. So we're not looking at expanding the resource with this drill program. Really what we're trying to do is get a better understanding and more data related to the potential production and grade profile at the beginning of the mine life. So this is something that we did at Artemis Gold when I was there, when we acquired the when we acquired a blackwater mine, there was some skepticism about whether or not there was a high-grade zone that you could focus on at the beginning of the mine life because it hadn't been identified by the previous owner of the asset. So FENGED has a similar situation where it's a subgram ore body when you're looking at the overall ore body, but there's a high-grade zone that comes straight to surface. And so part of the rationale behind doing this confidence drilling program is to demonstrate that there is high-grade mineralization that we can focus on at the beginning of the mine life, And it also gives us much more information and greater certainty in terms of what grade we can deliver to the mill early on in the mine life. That's going to be important for securing your debt financing package, for getting your payback period. So there's a variety of different things and de-risking aspects to this program. But what we're excited to do is to show the market and to show investors that there's some pretty nice grade at the FENGIP Gold Project. And that's really what we're focusing on at the beginning of the mine life with this pre-feasibility study. In terms of, like last year was a bit of a transition year. You know, I took over the CEO role in January last year. Drew joined the company in March of last year. And we had to take some time to really refine our strategy, to understand exactly how we can move the asset forward, and to fully do our due diligence in terms of, you know, like what are the different, you know, what does the asset look like, how much can we push it, what's the grade profile, which consultants and contractors do we want to work with to move this asset forward. And it took us some time to get our ducks in a row, but we did get our ducks in a row. We've delivered this pre-feasibility study. We're ready to start or we're going to start the permitting process. We've already started the community engagement side of things. And we finally have an economic study where we can go out and tell people about why we've decided to go with this strategy to advance FENGIB in a sub-5,000 ton per day operating scenario. And so what we think with this pre-feasibility study, we've demonstrated that the economics are robust to start with a smaller scale operation. There's a high-grade zone we can focus on, which is differentiated from most of the other open pips that you see in Canada these days. And we have a differentiated permitting and construction timeline in that we can get through the provincial permitting process to get this permitted quickly, get it into production for a limited capital cost, and unlock the value of this asset by creating a new Canadian gold producer. We underperformed in 2025. We think with the information we have to the market now, there's a big catch-up trade for us to advance the company and to catch up to the other comps that did much better than Mayfair Gold in the current gold cycle last year. This is another way of looking at it. So, you know, we've invested in the company heavily. I've bought $2.1 million worth of stock in the last, call it 14 months, and either involved in financings or by buying shares on the board. And part of the rationale for me to invest and to come in and to run a company like this is because I see the long-term value opportunity associated with creating a new producer and by getting that re-rate from a development-scale asset to a new producer asset. And so we've tried to represent this, and you might see that as a pretty robust-looking potential share price of $25 a share. There's a lot that has to go right for that to be realized. However, that's what we're focused on doing right now. So we're focused on bringing this asset into production effectively. We're focused on designing a project that we can execute well. And if you look at the way the gold market tends to value companies, the companies that are able to execute well, that companies are able to get assets into production on time and on budget, they tend to get better valuations in the market relative to the rest of the street because it tends to be a fairly rare occurrence. We've designed this asset to be very executable from our perspective. We have a team in place that can manage this execution well. The financing that we need to get in place is very much doable. $450 million in CapEx. We'll look at $250 to $300 million in debt. There's not a lot of incremental equity that is required to bring this asset into production. And we have a great set of insider shareholders and non-insider shareholders that are supportive of funding this through to production. through production. So we think we have all the elements in place to put us in for a substantial re-rating over the next three or four years. And that's very similar to the type of re-rating that we saw. I mean, you can never guarantee what a re-rating looks like, but I put a lot of money into Silvercrest Metals when I was part of that company. I invested heavily in Artemis Gold when I was part of that company. I've invested heavily in Mayfair Gold because I see the same kind of upside potential that we achieved at those two different companies within Mayfair Gold and by advancing the Fenga Gold project. And so that's what we're trying to do. We're trying to make sure that we get additional shareholders involved so they can participate alongside us. You see our team right now, we've got Drew Anwell. And Drew is an incredibly key man for advancing this project. Drew is the one who has the experience as a builder. He's a serial mine builder. He's also uniquely qualified to help us navigate the FENGIP Gold Project through the permitting process. He was the CEO of Generation Mining, where he successfully got the Marathon PGM Project through the joint panel review between the federal and provincial governments. And prior to that, Drew, he heavily helped manage the development, the construction, the commissioning, and the operation of Detour Lake, which is the largest open pit mine in Canada. So our team is very much geared towards building a mine, towards creating a new Canadian gold producer, and you're going to see some additional people come online, come onto the team over the course of the next one to two years, and you'll see that we'll be rounding out the team with additional engineering talent and people that are focused on executing a build, getting ready for construction, and making sure that we de-risk this asset and get this into production as quickly as possible. I'll also note the recent hire of Zion Lacani, Vice President of Capital Markets. Zion's a unique Capital Markets individual. He previously managed $4 billion with HSBC, which was acquired by RBC. So he joined the company recently. And this is also part of our differentiated strategy. You know, the mining sector tends to focus on getting investors that are specialist investors, investors that are used to investing in mining. There is a much broader audience for generalist investors to look at mining investment. If you look at our shareholder registry, Muddy Waters is the largest shareholder we have. Keeney Capital is the second largest. And after that, it's Oak Tree. None of those guys are specialty mining investors. There's definitely some mining investment talent within Muddy Waters. But they're generally more well-known as being generalist investors. So Zyem is also a generalist. He joined the company because he likes gold. He also likes the team, and he likes the value proposition associated with bringing a development stage asset into production. And so now we've got our board. I see the nice image of Darren McLean. He still needs to get us his headshots to include on this page. But we've got a very differentiated board, and it's going to give us some flexibility to do some things that other companies maybe don't want to do or maybe aren't comfortable doing. Zach Allwright was an excellent addition to the board. He brings some engineering talent and specific project-related knowledge. Christine Shea was also a great addition to the board. Her background is a legal background. She works with Glencore, and we also have Carson Block, who's with Muddy Waters, and we have Sean Pye, who's with Heaney Capital. So, we have a dedicated board that's focused on getting this asset, supporting us as we move this project into construction and through the permitting process and on into production. And finally, just focusing on, we did recently, we did a share consolidation, a two-for-one share consolidation. We did that in order to support a U.S. uplisting, which is on track to happen sometime in the next couple of months – or, sorry, next couple of weeks. You can see we've got a fairly tight share structure. We've got $40 million of cash in the bank. That was because we did a $40 million financing in September of last year. And the important thing here is that we have enough capital to fund all of our operations through to mid-2027. We don't have to come back to the market anytime soon. We can do substantial de-risking. We can get some progress on the permitting side. We can make some progress on community engagement side of things. And hopefully we can try to attract new investors to the company who want to participate in the upside associated with bringing a new Canadian gold producer into production. And so you'll notice that we have purchased 15.4 million of insider purchases since October 2024. I think that's a massive differentiator between us and most other gold companies out there. There's not that many gold companies that have seen that level of insider investment within their own companies, as you see at Mayfair Gold. We are committed to getting this project, getting this company into production. And I think I'm going to leave it at that in terms of the formal part of the presentation. I think we'll open it up to Q&A at this point in time.

Operator

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchstone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. Once again, if you would like to ask a question, please press star, then 1. Showing no questions, I would now like to turn the conference back over to Nicholas Campbell for any closing remarks.

Nicholas Campos, CEO

Thank you. Well, I just wanted to thank everyone for coming on the call to learn about the FENGIP pre-feasibility study. I can say on behalf of Mayfair Gold, the management team, the board, and all of our stakeholders that, you know, we're very excited about moving this asset forward. We think this is a very unique, overlooked opportunity within the gold space, and we're pretty excited to tell people about it this year. We're entering into a very active, very exciting time for Mayfair, and we're looking forward to telling more people about it and getting more people invested alongside us. So thank you very much.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.