Q3 2019 Earnings Call
[laughter] and actual results could differ from the conclusions corporate injections in that forward looking and.
Nation, which include but are not limited to statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production cost of production capital expenditures future metal prices and the cost and timing of the development of new projects.
For a complete discussion of the risks uncertainties and factors, which may lead to actual financial results and performance being different from the estimates contained in the forward looking statements. Please refer to the amount of press release issued yesterday announcing third quarter 2019 results as well as a management's discussion and analysis for the same period and other.
Our regulatory filings in Canada, and the United States I.
I would like to remind everyone that this conference call is being recorded and will be available for replay today at 12 PM Eastern time.
Replay information and the presentation slides accompanying this conference call and webcast are available on the amount of web site at human or dotcom.
I will now turn the call over too.
And Mr., Racine, President and CEO .
Thank you operator, thank you all for joining us and welcome to our third quarter Conference call.
With me on the call today's Jayson Leblanc, our CFO other members of management or also in the room and will be available for the Q any portion of the goal.
I'll start as I do every quarter with health safety and corporate responsibility. The total recordable injury injury frequency rate continue to trend lower.
Points 58 down from points 66, a year earlier, a 12, 12% improvement.
We didnt have any significant environmental social incident of our site during the quarter.
The third quarter, we began environmental monitoring programs all operation with neighboring local communities.
These programs are those communities to partake in environmental monitoring improving transparency and ultimately strengthening our license to operate.
Zeal production during the quarter was in line with our plan at the costs.
678 per Geo and on the all in sustaining costs at 1039 per Geo.
The all in sustaining cost reflects the company decision to increase exploration spend and concentrate sustaining capital spend in the second half of the year.
The additional exploration spend allows us to build on the strong drilling results being updating across all operation.
We share some of those result into third quarter with exploration updates project will be now and Canadian Malartic and we'll be providing updates in Q4 for Minera, Florida and opinion.
The additional sustaining capital spend provides greater certainty for Q4 and into 2020.
Historically Q4 is our strongest quarter and that threat that trend is going to continue this year and bring costs in line with annual guidance.
Ill talk more Sean more on that shortly.
Net earnings during the quarter of 201 million or 21 cents per share include a number of of item that might not be reflective of current and ongoing operation.
Most notably the 273 million gain on the sale of shopper data.
On that there's an adjusted basis net earning a 52 million or five cents per share.
Cash flows from operating activities before net change in working capital were 152.4 million or 16 cents per share.
Free cash flow before dividend and debt repayment was 29.4 million compared to other sort of 19.7 million a year earlier.
We declare a 100% increase to our dividend in the third quarter, raising our annual dividend to four cents per share.
And as Jason will discuss we we are looking to increase it further in the future.
It was uneventful quarter with a number of positive developments, we decreased our total debt by 800 million.
Lowering our net debt by 810 million to nine 949 million.
And we now have far greater financial flexibility to reinvest into business.
Deliver growth and increase shareholder returns.
1500 dollar gold doesn't that does not change our business plan noise will change the discipline with which we allocate capital a point I cannot stress or not.
But it doesn't mean, we will generate more free cash, allowing us to further reduce debt and increased returns.
During the quarter, we provided the reserve resource and exploration update for Jack will be now.
Since year end 2017 mineral reserve increased by 20.5% and grade is up 5.3% the increase support annual gold production above 170000 ounces, which was our previous guidance targets project will be now following completion of phase one expansion.
Was expected in mid 2020.
Plant, we're putting CUVITRU approach our phase one target of 6500 tonnes per day at a recovery of 96.2%.
The remaining phase phase one investment is expected to consistency and stability to the process plan.
The increase in mineral reserve and mineral reserve grade also supports the potential for the phase two expansion.
During the quarter. We also provided a positive exploration update for Canadian Malartic, including the discovery of New mineralized zone known as East Goldie.
Nevertheless, I mean, the renovation at these goldie has been intercept.
By drilling along 1200 meter of strike over 700 meter vertical extend across white intercepts.
In addition, the results suggest the potential for another zone between East Goldie and Odyssey.
Result, also indicate that east Goldie ASML uptick insulating zone are converging at that suggesting the prospect for a large underground both tonnage opportunity.
The positive result drove our decision to disclose inferred mineral reserve resources below a 1000 meter for easement uptick at year end 2018.
Our 50% share it was 1.48 million ounces, bringing our share of the total inferred mineral resources at these metric to 2.88 million ounces, a 106% increase.
Drilling at East go these ongoing and we expect a preliminary inferred mineral resources for the deposit by year end 2019.
We initiated the person chase of Canadian Malartic led by our chairman will engage in their purchase because of the cash flow from the operation and also the underground potential we conducted extensive diligence while only the idmc potential was indentify at the time. We concluded there was a strong potential on potential for a lot.
Underground ore body.
For our five mines are on underground operation and eventually all five will be with Canadian Malartic our team at the amount.
Years of underground experience.
As many as you know personally I spent over 25 years in underground mines in the Abitibi.
There is this is a high priority for us after Jacoby now and we would consider it a myriad of getting some synergies from developing the underground while we still have open pits.
Turning to operation, we produced 239000 geo into third quarter, including 209000 ounces of gold and 2.5 million ounces of silver.
As mentioned, we choose to increase spending in the third quarter as it allows us to build on strong exploration results and set up for a strong Q4 and 2020.
Gives some added color, we expect the core quarter operating cost to benefit from strong performance at helping you on and Minera, Florida, primarily to do to great improvement.
We also expect to benefit from the start of of production of 400 gone mines at several mobile, including the high grade Zoe underground mine.
Taking a lot that our individual mine, helping you on another strong quarter with production exceeding the same year same year earlier period as well as the second quarter of 2019.
The improvement was driven by higher gold and silver feed grade in line with plan in a trend that will continue.
That we expect to continue in Q4.
We also expect that helping you on production will exceed our guidance.
I think it's worth noting that Threesun mine development at helping you on as greatly improve the operation production flexibility and follows a similar strategy undertaken that Jacoby now, which once again exceeded this production plan and posted its third straight quarter. This year of record production.
Cost that Jacoby now during the quarter were in line with expectation and lower than Q3 of 2018. The decline reflects the internalization of underground development activities that were previously under contract.
We'll be now is well positioned position to meet or exceed our river revised annual guidance of 152000 homes Geosciences.
As I mentioned.
We provided a positive exploration update project will be not during the quarter and we continue to explore aggressively targeting New addition to mineral reserve at three grams per ton or better.
Production at Canadian Malartic was in line with plan and the mine is well positioned to mill to meet its full year forecast of 330 30000 ounces.
The extension project continues to advance as expected with modest contribution for Barnett anticipated in the fourth quarter of 2019.
The ramp up will continue throughout 2020 with meaningful contribution sets to begin in 2021.
At Cerro Moro productions feed grade and mine ore grades were consistent with plan, but lower than prior year period, and the second quarter of 2019 due to mine sequencing.
As mentioned for underground mine are expected to be in develop men and production during Q4, including the I agree there's only.
Underground mine.
Several model continues to pursue an aggressive drill program 2 billion a building a.
Near mine targets.
Test major in near mine and original structures at Minera, Florida production was impacted by lower gold grade and decrease would put due to development challenges stemming for mechanical availability and mine sequencing compared to the prior year period mine management management has taken action to improve mechanical.
The availability, which is expected to increase in the fourth quarter in relation to mining sequence, we shift but auction to the core mine to focus on exploration and development in the Edwar free a concession and prepare the PBS, but Douglas and Donadeo Bulldog veins for long term success over.
For all our Geo production and costs are well on track to me that 2019 guidance and now we'll add it over to Jayson to discuss the financials.
Thank you Daniel and good morning, everyone I'd like to start out with the thoughts about our cost performance during Q3 in recent quarters.
As you can see in the top left graph in relation to the first half of 2019 third quarter cash costs were stable at $678 per Geo.
Shifting to the upper right all in sustaining cost of 10 39 per Geo were impacted by the increase in our exploration budget as well as the timing of sustaining capital spend shown in the bottom left and right grass respectively.
Daniel mentioned the decision to concentrate sustaining spend in the second half of the year supports the highest quarterly rates of mining and production during the fourth quarter as well as improving access and flexibility in mining operations into 2020.
This strategy had been notably effective at jacket, Lena, resulting in higher production rates in recent years in quarters in an opinion, where production levels have increased together with development rates there.
The higher spend later in the year sequencing and does not change our total annual guidance for sustaining capital of $167 million, nor did it impact cash margins due to the increase in the gold price during the quarter.
Sustaining capex in Q4 is expected at about $47 million, which were true up to our guidance for the year.
A stake is expected to decline in the fourth quarter similar to the profile in 2018 and be in line with our overall annual guidance.
Following the improvement and accompanying financial flexibility one of the first decisions what to allocate a portion of our better cash flow profile through a higher dividend.
As such a doubling of the quarterly dividend getting dividend was declared in Q3 and positioning humana with one of the better yields amongst the peer seen here.
With an expectation of improving cash flow in cash balances the company will be evaluating future increases to its dividend rate.
Part of this appropriateness is how our dividend measures in relation to our revenue cash flow in on a per ounce basis.
Other factors, we will continue to consider in evaluating the level of our dividend and sustainability at that level.
With the growth in our cash flow and free cash flow profile, we intend to balance our reinvestment in the company through organic.
Growth opportunities in exploration with increasing cash balances and also improvements to our dividend.
Our expectation is there are opportunities for improvement across all of these measures.
Revenue in the third quarter with $357.8 million compared with.
$424.7 million in the same period last year.
The decrease reflects the company's current portfolio includes five mines compared to seven in the third quarter last year.
DNA in the quarter with $21.8 million, primarily due to market market on stock based comp from share price appreciation during the quarter.
This was partially offset by the reductions in Genie announced earlier this year.
We continue to expect 2019, Jna costs on a cash basis have $68 million compared to previous guidance at $75 million.
Net earnings attributable to you on equity holders in the third quarter were 21 cents per share.
This includes certain items that may not be reflective of current and ongoing operations, mainly the 273 million dollar gain on the sale should pata.
When adjusted for these items earnings in the quarter were five cents per share more than double the two data generated in the third quarter of 2018.
Cash flow from operating activities more than doubled in the latest quarter to $157.4 million from $64.5 million year earlier.
Free cash flow before dividends in debt repayments during the quarter was $29.4 million and we reduced net debt during the quarter by about $810 million.
The performance during Q3 was a continuation of the inflection point on free cash flow that we had in Q2.
But we expect a further step change in free cash flow for Q4, with our best production quarter of the year.
As Daniel mentioned, we monetize the gold price instrument during Q3 for $65.5 million in cash.
The decision to monetize the gold price instrument, followed a detailed analysis to determine the fair value of the instrument.
Our analysis the value factored in the forward curve and consensus views for the gold price gold price volatility and appropriately discounting the value of the instrument for risk and the uncertainty of the future gold price.
We concluded that a ferry of fair value cannot be derived by simply calculating the present value at the instrument based on the maximum potential payout over its five year tenure.
This view is corroborated during a price discovery process and led to the monetization of the instrument during Q3 for $65.5 million in cash.
The consideration represents immediate recognition of nearly three years of the maximum payment under the instrument a value that we made that never have received due to gold price volatility.
As a reference we estimated the fair value of the instrument at around $35 million in April when the agreement to sell Chapin It was announced.
On July Fiveth, the Chapin closing date, and the recognition date of the instrument as well we estimated the fair value at $54 million.
Monetizing assets when it makes sense for that business as it did in this case is another way in which we generate value.
And with that I will turn the call back over to Daniel.
Thanks, Jason It was a positive quarter for Yamana.
We delivered strong free cash flow growth and we will continue to do so.
While costs increase in the quarter. This was by choice and we will be will bring costs in line with annual guidance. During the fourth quarter, we will continue to evaluate our strategic assets and deliver value by advancing developing.
Where appropriate monetizing them.
Our upcoming Gotta. This includes exploration update for helping you on and Minera, Florida in Q4, and the reserve and resource up resource update for the entire company in Q1 of 2020.
Results project will be knows Prefeasibility study are expected in Q1 of 2020, and we will be providing a preliminary inferred mineral resources for each school the in the same quarter.
And with that we'll be happy to take your question.
Thank you Mr. Tim.
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The first question is from Stephen Walker with RBC capital markets. Please go ahead.
Thanks, very much good morning, just wanted to ask Dan Yes.
Weve heard northern Star Barrick Newmont talking about streamlining.
The development cost underground and given your underground exposure down yet.
Could you talk a little bit about what we're seeing in the industry with respect to.
The development.
The traditional development of crude doing.
Scaling bolting screening and then another crew coming into two do the jumbo drilling what we're seeing from the Australian and somebody other underground mine yours is that isn't having streamline to one crew that has using the jumbo for that do you see the potential for adopting this.
Modification in the underground Latin American operations is this something that could be a future cost benefit on unit mining costs for your manner.
Thank you Stephen.
Look each mine as each underground mine is different than I think our costs are already I look at the close I tell opinion I look at the cost at the.
Jack will Bina you know there are already quite low compared to the industry standard and then.
Look I think there's a certain mines you can do bolting with jumbos.
But thought reminds you need unique boulders and its different it's in our case, it's not different cutera accrual, they're all part of the same cruel. This accrual working together some are doing with the jumbo some are coming back after the two duty the markings and ended the bolt into the phase to be ready. So it depends all his integrate the amount of.
Faces you have also and the priority you have a you know we don't have one single phase of priorities. So we have we have many in our minds and and to be efficient.
Yes, do we you do it to Johan in many faces at the same time with the same cool. So I think each mine is different when you have bigger mine with bigger opening then you can assume you can do it with the same equipment, but you know with the size of mine, we have type of ore body, we have its it.
It's going to be challenging to be different but like I said right from the start to we're very happy you know one newer into 2000 dollar per meter.
Doing development that Youre mine I think it's challenging to go lower than that.
Great. Thank you and maybe just stepping back a little bit you've made a number of improvements to the operating costs on unit basis do you see further improvements that are possible or are you starting to see cost inflation, whether its contract cost inflation maintenance cost inflation.
Are you starting to see impacts of.
Inflationary pressures on your unit cost or do you think there's there's further benefits an improvement no. This further benefit of improvement and the we've mentioned that 2020 and 21, we're going to continue to further improve we have great operational excellence in all our minds, they all work and share the benefit there they see at each.
All of their mind, how to improve different area, we have implemented that that the at Jack will be in a few years ago and now it's implemented that all our mind the share their share benefits or ideas to improve cost and those are naturally as our production is going to go higher with grade.
And then we're going to benefit with lower costs, just by the Dividended divide are being being higher so.
We continue we will continue to see a cost going down for Yamana.
That's very helpful. Thank you.
Thank you.
Next question is from Tanya Jakusconek with Scotiabank. Please go ahead.
Thanks, Good morning, everybody.
Well of technical questions and then one for Jason I am just on let technical side, maybe Daniel can we talk a little bit about just how that challenges like some of the assets that very well, but can minera, Florida.
I am Laurel Kincaid to just be challenged in the quarter I appreciate that you're expecting a stronger in Q4 footballer that maybe just review.
What's happening now why the stronger Q4, and then does the guidance farming area.
85000 ounces.
I can get a little further Aaron and nearly 100 parity for Cerro Moro. That's my first question Okay.
So I'll start with Cerro Moro I think Cerro Moro, we mentioned, we going to be in.
And for mines, and all underground starting this quarter.
So you'll see a green going back up for Cerro Moro and then answering the second part of your question, we're very confident that several morals.
Reduction for the full year will be pretty close to the guidance.
For me that I've learned a great is going back up to what sort of level.
The 10 to 11 grams per ton or to reserve grade is so above 11 there okay.
For a Florida has been more challenging I think we we've decided to.
To tool to change the way we were doing mining, we you're going to see cost decrease in Q4 production increase we're very confident is familiar Doug when you meet the guidance probably is going to be shy of guidance.
Globally will be higher than guidance, because like I mentioned opinion.
Jack will be now will be higher than guidance several mobile will be a.
Close to guidance and metastatic will be on guidance. So little bitty will meet the guidance for both gold and silver, but Florida will be will be more challenging, but we see you will see great improvement in Q4 fulfill either.
Okay, and maybe just some some comments on where do you see this asset going longer term national media.
I mentioned many times.
During this year that we see huge potential in exploration that the flow either a florida will be an 85 to 90000 ounces for.
A few more years, two or three years.
And then we should see production going up and know what we're doing a new one is doing with his team at the minuses to adapt the cost would that reality of 85 to 90000 ounces per year.
And again I mentioned in Q2, and they'll see it again yos you'll have good surprises when will come with the resources and the reserve update in February four flow, either and many of our minds, but Florida and especially.
But we don't want to go to facet, Florida and go right away on these new was own and start to develop them in mind them without without doing the proper exploration before so we'll still very hopeful that flow EDA will will be a very good mine north target is it's clear for the mine.
Make sure that we go to the best areas, we had up our cost to to make sure that them.
The mine is generating cash flow and free cash flows.
Even if they are modest as these it's a it's going to be into positive side of the business and again.
I think again, we're very optimistic on the future of Florida.
Okay, and maybe you mentioned reserves and resources that trends my second question, whether with everything that you've done this year and do you think you'll be able to replace reserves and resources without changing commodity prices.
Yes, we said it also too it's clear that all our minds.
We won't change the the department or as we use last year. So we used all 50 to do our resources and the reserve last year resort and then we'll do the same this year. So all the same parameters all the same exchange the same the same value for everywhere, so gold price increases and won't increase that we.
Artificially or resources or reserve will using the same parameters as last year and yes, we're very confident that we're going to replace globally, our AR reserve and resources.
Okay, and Flavio Dias, one one of the lawn will probably overperform.
Okay.
Perfect and then maybe Jason just coming back on I'm, sorry, your hedging policy for both currency and a golden I know, we've talked a little bit about you know you do have hedged currencies going falling just maybe talk a little bit about gold hedging strategy given that color you put in Q O Q4.
And how do you see hedging and 2020.
Yeah, I'll start with the currency for if that's the way you asked the question Tanja.
And we've been a very steady state.
Hedger of certain certain curries currencies when it made sense that from a cash flows certainty perspective, I don't think anything has changed there. So you can continue more of the same where we would hedge.
In certain cases between 50% is a 70% maybe up to 75% of.
Local currencies on the on the call question, Yeah, you're referring to the.
The color we put in place just for Q4, I guess I'd start by saying.
We're not we're not going hedgers, we won't continue to.
The hedge gold that was a fit for purpose.
You know for for a quarterly perspective.
We saw the opportunity with.
The rise up in gold prices and some of the dislocations that happened there and the volatility that presented an opportunity like that.
It really the purpose on Q4 I'll go back to that the comments I made that in my remarks about profile of free cash flow.
We're very excited to have that inflection point in Q2 Q3 also delivered free cash, but the Q4 is the one where we we see a multiple of that free cash flow generation and really with the increase in gold prices were able to two to effectively locked lock that in.
That we can show that current trend upwards, but I would consider that a a one and done as it relates to gold hedging I think it also allows us debt.
Continue on our path of.
Interest in cash of reducing debt levels, we don't have any real debt maturities due until 2022, we do have a more modest payments are fixed term debt in.
The first Curtis quarter next year, so with that free cash that we've we've locked in we can you know defease that.
That upcoming debt payment beyond that you should expect growing cash balances and.
You know decreasing our net debt.
So I guess I understand that we like to see.
No not played in nickel price.
I shouldn't be looking at your next quarter and thinking is another caller coming with no United name I wouldn't I Wouldnt conclude that no. Okay.
Okay, great. Thank you. Thank you.
Thank you.
The next question is from Michael CRB area with Canaccord Genuity. Please go ahead.
Hi, guys. Thanks for taking my question, Jason just a question for you around capital guidance for the rest of year. I know you guys said that in Q4, you expect to spend about 47 million after sustaining and first off I was wondering if you could give any more granularity around.
The both the gross Capex stockpile Capex at Mueller Tech and even that capitalized exploration going into Q4.
And I also wanted to ask around the percentage of exploration that would be capitalized I think at one point you guys had said that you'd expect to capitalize about 77% of exploration cost. This year I just wanted to know if that was still a still the case going into last quarter.
Yes thats.
Thats still pretty good Mike on I'll try to run three though is if I forget something please just remind me.
As mentioned, we're going to do our sustaining capital for the year I said 47 million on costs, you should expect that.
Expiration.
You can see the disclosure we increased by $10 million, that's all capitalized exploration will go through there.
The expense portion is probably running a couple million dollars per quarter, that's still a good run rate.
On the growth side.
We announced this you few projects this year, so it'll be a couple million dollars I'd say about guidance, but a big picture colleagues.
Call it online with with guidance.
On the.
On the stockpiling front thats about.
1 million tons that.
At Atmel Arctic.
During during Q4 I believe so that's a pretty good number to use and just apply your your mining cost of that.
Okay and on.
Total basis are you able to give any kind of guidance around.
What you expected that total capex number to be.
[noise] on which line items.
I'm just across across the board, including sustaining exploration stockpiling and growth.
Yeah, just the it's effectively are all of our guided all of our guided levels. Okay. All right. Thank you, yes, yes.
Thank you.
The next question is found that Mike gentlemen, with Bank of America. Please go ahead.
Oh, Hi, Dan just.
Two questions first agora, because it looks like positive progress there.
With your partners a timeframe with Alhambra, just wondering there might be a change and government Argentina very shortly a more or less Wayne just wonder if that would impact the.
Project pipeline.
And.
I was wondering on Cerro Moro is.
Are you isn't the amount of getting cash out of the country Lithia foreign exchange controls. Thanks.
Yes, Jason can answer the second part, but yes, we can I can see that we there is no. There's no issue too to bring cash out of the country.
For us Jason can give more detail, but that's not an issue and regarding your frequent first question.
After the first round of that action in Argentina.
Run up candidate Mr Fernandes.
Even not even a week after that.
Our strong.
Contacted all to mining companies to go meet him and we were part of it.
And then we don't see any.
Any big change meant on on on our part in.
In the country. After this this weekend's that action. So is the second round on Sunday were going to see the result, but so far we don't see major changes.
With.
The potential new <unk>, new president of the country, we'll see what ought to resolve but we don't see.
Any changes.
And yes, like where we guess studies going really well we've started the permitting process and then.
We're going to the phase of a of doing it at PD Defeased study for mid next year.
Oh, Okay. Thank you, yeah, and Mike I wouldn't really add anything why the Daniels added business as usual and Argentina as it relates to.
Moving their money, we see no impediments to getting getting cash out and we've been operating in Argentina for for over 10 years and.
I have had experience and as before and we see this is a very similar similar aptus episode, it's it's a little bit more elbow grease back to it gets done.
Normal course.
Okay, well thank you.
Thank you and the next question is from Anita Soni see RBC. Please go ahead.
Good morning, guys. Most questions have been so I'll ask about January and February .
Hey, coming into January are you going to do a production update as you normally do for the fourth quarter and then.
When we deliver guidance January or February this year.
Yeah, we we've decided as a company probably to do.
Pre production release twice a year still January will probably be one.
Okay, and then July will be the other the other one so.
We don't think Theres, a purpose to do it to do it each quarter, but I think twice a year will be the wheel, we want to go into future. So you can expect that yes in January we going to pre release production.
On the on the guidance and then resources and reserve. It's it's always a second week of February .
Yes.
Hi, Thanks.
Thank you.
Thank you.
Once again, please press star one at this time if you have a question. The next question is from Stephens Butler with JMP Securities. Please go ahead, Oh, thanks operator.
Jason interest payments, how do you expect they will fall in.
Roughly what level in the fourth quarter. Thanks.
Yes, Steve I guess you can just you can build that up off of our total total debt level, then grow stats about.
One point.
1.5.
Billion.
Apply a 5% rate to that that will account for the interest rates dance standby fees and.
Some other ancillary cost I think it's a pretty easy way to do at your divided up for a name Perspectively, you'll need to take into account, our our free cash flow generation, obviously, and we'll see those debt levels going down so the interest will go down commensurately.
Okay sounds fine then guys just on helping you on I noticed your your ore mined approximately 2700 tonnes per day, just a hair above that and the ore milled about 3500 tonnes per day, just slightly less.
Is the stockpiling strategy do you have a fair stockpile I don't put you on that can help sustain the mill at that 30 510 are pretty rate and maybe if I can give us essentially the tons and stockpile tons of great. If you habit.
Hi, Steve I going to none and sort out one here.
Hang on at this moment, we got about.
Let's say 18000 tons of stockpile and we also have a low grade stockpile.
So while.
I'll you can see I mean, we see that the contribution from the run of mine is increasing.
And countries on little bit itself is decreasing quarter over quarter. So this is what are your strategy and this is based.
On our Flexibilities to feed the mills from one of mine with more working in activities right. So into 2020 or 21, do you expect to be able to sustain or even improve upon their run of mine from underground above the 20 710 pretty level.
I think we're going to see improvement quarter over quarter at that thing on I mean, we still working on our budget, but.
Being honest trending Woody wells you know the Rightsizing that we did.
Was I mean, it takes time you need to rightsize first a ton of stuff Thats your costs and we had the stays where we really right size our costs. So we see a really positive momentum and picking on and Theres. A we believe that there's going to continue over in 2020 and going forward.
Okay. Okay. Thanks, very much guys yes.
Thank you as a reminder, please press star one at this time, if you have a question.
There are no further questions registered at this time, so I would like to turn the meeting over to Mr. Daniel Racine.
Thank you operator, thank you everyone for joining us we look forward to updating you on our fourth quarter result in February and for US that all our mine is business as usual. So we should have a great Q4 like we we mentioned many times today and ended up past. Thank you bye bye.
Thank you.
France has now ended please disconnect your lines at this time and we thank you all for your participation.