Foraco International SA (FAR:CA) Q2 2026 Earnings Call Transcript

SA Transcripts 161.39K Followers Follow Foraco International SA ( FAR:CA ) Q2 2026 Earnings Call July 31, 2026 9:00 AM EDT Company Participants Timothy Bremner - Chief Executive Officer Fabien Sevestre - Chief Financial Officer Conference Call Participants Donangelo Volpe - Beacon Securities Limited, Research Division Frederic Tremblay - Desjardins Securities Inc., Research Division Steven Green Presentation Operator Good morning, and welcome to Foraco International's Second Quarter 2026 Results Conference Call. [Operator Instructions] I will now turn the call over to Tim Bremner, Chief Executive Officer. Please go ahead. Timothy Bremner Chief Executive Officer Thank you, Joanna, and good morning, everyone. Thank you for joining us today to discuss Foraco International's results for the second quarter ending June 30, 2026. Joining me on the call is Fabien Sevestre, our Chief Financial Officer, who will review the financial results and the key drivers of our performance. Before we begin, please note that our remarks and presentation may include forward-looking information, which is subject to unknown and known and unknown risks and uncertainties. The market backdrop entering the second half of 2026 remains constructive. Global nonferrous exploration budgets reached approximately $12.4 billion in 2025, recovering from multiyear lows, and drilling activity has continued to build momentum in 2026. Gold prices near record levels are supporting a significant increase in exploration spending with gold representing approximately half of global exploration budgets. At the same time, customers remain focused on near-mine and brownfield programs, which now account for a record share of exploration investment. These programs generally offer lower geological risk, shorter development time lines and strong demand for technically capable drilling services providers. Longer-term fundamentals also remain supportive. Structural supply constraints in copper, cobalt and silver, together with demand associated with electrification, energy infrastructure and artificial intelligence are encouraging customers to invest in resource expansion. Improving access to capital for junior and intermediate mining companies is also contributing to a broader recovery in drilling activity. Foraco is well positioned in this environment through a diversified portfolio of Tier 1 and