Q3 2019 Earnings Call
Good morning, and good afternoon, ladies and gentlemen, and welcome to the oceanic O. 2019 third quarter results webcast and conference call.
This time, all lines are and listen only mode. Following the presentation, we will conduct a question and answer session.
If at any time during this call you require immediate assistance. Please press star Zero 40, operator. This call is being recorded on Thursday October 31st at five PM Eastern time, Oh now like to turn the conference over to make Wilkes. Please go ahead.
Loading in a good evening, everybody a walk into a the I share the Gulf stood quota.
Yeah.
<unk>.
It's good to be with you today, and <unk> and financial performance for the quota.
<unk> Chief operating officer.
<unk>.
Cleaner cheat financial limits to discuss.
Financial results.
<unk> pleased to have G. ludicrously executives general malaise due to high localized some on the cold he'll be <unk> questions around <unk>.
Just moving this flawed to <unk> to.
People read out the people. We proceed not the the <unk> image presentation to eat you into this new financially.
Coding standards at all for their two figures.
The U.S. dollars in most places otherwise.
Well <unk> forward looking statements, which probably agree actually were subject to some degree of uncertainty.
They can be more willing to could afford looking started.
Will prove to be accurate as a teacher results into bins to.
You can't really late.
Please refer to the beach global on food nothing stuck Internet presentation.
So.
<unk> three <unk> the other views.
The results came up with that challenges, particularly at the P. I rarely continued to never guys renewal price is well agreement with the Philippine government.
We also I continue to deal with the the <unk> of the provincial Governor which has resulted in temporarily suspended.
<unk>.
Due to lack of support as mated pool sustained book Horizons.
Oh, the console that advice itself right. She was produced approximately 362000 dances with gold and 10000 tons of corporate mute Tonight and then the third quarter. We introduced 170000 to ask you go in 2300 tons of <unk>, which was lower than the <unk> quarter due to the process.
<unk>.
You only costs for 1000 in $97 for ransom styles with approximately 341000 asked me to go in 6900 pounds a cop you today.
The why a quote unquote only to start up costs will do to decrease from the D.C. or.
In the third quarter times, when there's a significant outdoor actually improvement for the third consecutive quarter.
Third cool <unk>.
Sought decrease 20% quarter encore and nearly 40 been since since the first quarter of the year.
Continued to improve Martin productivity, well continually drop skilled workforce an experience in our experience in north title for it either right.
They're making stone target smoothing material.
Until material they've been taught 30 66 from a previous quota.
Continue with two two car throughput rights.
In the prices for much earlier than expected.
Yeah.
<unk> so from.
Quota.
Revenue in either or both decreased as a result is bought the heart of average we're laws go cross through the year.
Results translate into an adjusted net profit of negative $5 million.
And fully <unk> adjusted earnings per share of negative one saved.
There's multiple operations in the portfolio, we continued to general like good kind of slides either died that resulted in a fully looted cash flow shared before working capital of 26 cents.
Yeah significant <unk> <unk> <unk> continued to advance well.
At my Undergrad completed immediately.
<unk>.
Well, a T.V. went exceptional drill results.
Yeah.
Hey, you press that continued continues to yield up promising results.
X. 12 months, we will complain.
And they didn't seem study from walking to what he did street that will help to third according to fall like it's potential.
Permitting.
She wanted to gather tile continues to progress as well and we expect to see dependent early next year.
<unk> like stick to begin construction.
Cooler next year.
<unk>, we're very proud.
G performance, which continues to be recognized to cross their operations.
<unk> all of that they're not to.
With the war to the top pollution control officer in the Philippines, Pilati excellent bar environmental management thinking about it at the mall and.
That's like keep performance continues to improve.
With reduced frequency of injuries label on a cry and Kyle that's right. The Lady Suprane employing guys who has resulted in significant improvements.
Yeah, let me move on to the D.V.D.P.L.S.T.I. scored than before.
I just wanted to take the opportunity to discuss what is happening when the grand in the color print.
I did it you know has long been recognized says the template <unk> in the Philippines than we are only to be a significant contributor to.
<unk> no.
Huh.
<unk>.
Well <unk> <unk> very proud all and it's an upper action that's run by World class in the workforce.
We directly employ a the 1500 worth is <unk>, 97% Philippine Nationals.
The non for tenants, who left from the local communities.
And including allowed to 300 women.
Many of whom I mean Lady she rolls.
L.A.P.I.N. as far as the first one episode and in the Philippines in 1994.
He's going through the renewal prices. So it's the Thursday of T.I. to go through a meal.
<unk> had a timeline as to when the renewal prices would be cool concluded. The other continued to have that storming guys went with the national government individual auto.
We recognize the impact of the uncertainty regarding the meal has on their operatic in financial results, which she held it to the company and importantly, the local.
They'd be added depend on the mind seldom going operation to support themselves and their families.
Working very hard and collaboratively yeah government partners to the news the F.T.I. as soon as possible.
While the renewal process continues the national government, which is a priority or the money into country has permitted to continue operations that would be on.
Unfortunately, some parties and saying this is an opportunity to challenge that directive.
Misinformation and disrupt the operations at the moment.
It was previously shed in July D.C., and the Governor of live in Scotland issued an order directly local government units within his problems to restrain any operations of the company.
And that's the transfer to <unk>.
As a result during the third quarter underground mining operations were suspended.
<unk> consumable morning supplies.
Processing the ball from stockpiles continued and subsequent to the third quarter and.
The parse it seems they start to completion.
Oh, I might get shot down food prices plan, which was planned.
<unk>, so I, just temporarily suspended and where the critical activities continued to ensure the safety of their employees and protection love the environment.
If that outside remarkable to discuss the performance available license.
<unk>.
<unk>.
Moving on to slide five and before I begin reviewing now for I for results would lock to introduce channels you executive General manager <unk> who's joining us on the Cold Tonight.
June brings more than 30 years of money experience, <unk>, Merrick and others, North and South America.
You will be amount of questions at the end up with kind of design.
Training to slide six.
Girl The company continues to focus on enhancing out Frankie couches true leadership and four engagement.
Did you leave within apples from all around with a title injury frequency right of one point screen median house worked and improvements in Harlem and cried.
Resulted in the company.
Recordable injury frequency right.
<unk> and the last 12 months running at I. tunnel.
Frequency writer frequent seven comedian housework as compared to four point I that was the change in 2000 and Iterating.
Maybe we want to slide.
Professional performance at home.
I speak means we kind of significant improvement in operational performance.
And you should try and has continued into the pool score.
How produced about 37000 amp goal, which is relevant to them along with the previous school and sloppy log in the originally expected G. two would rely on accessing on on Friday section at the bottom like <unk>.
Unit cash crossword 890, I thought was around and the third quarter, which compares to either I, let $100, perhaps in the first quarter I'll see Ya.
<unk> hard court or if a quarter I do represent familiar 20% improvement unit sash costs 2000, I think.
The court on quartering person cash cross the rights to the volume of material.
Mine cost of three holes 43, with 10% loan quarter on quarter with better utilization.
Unit costs decreased productivity improvement.
First of annual equipment was put into action.
<unk> <unk> <unk> prices progress is more efficiently.
<unk> <unk>, 36% quarter on court on the spot on the one of the 730 D. come out to you hold trucks thing operable in court a three.
During the quarter Huh wait grounding combined money conditions the for some of the hard grinding to to or from a bottomless, Mike <unk> from the third quarter to the pool score.
We expect these improvements to become less of a challenge in Vermont <unk> with the completion is 95.
Times, one and Spanish it's.
Third quarter role in society.
106, I thought it was around represents the 20% decrease from court on corner.
You train the continuum prudent for that yeah.
In terms of course, there thing was still unit <unk> and we continuous pretty operated the prices plant about three point on the on ramp.
We saw and continued to speed the benefits of the be model beat both making practices at the price transplant.
Tying up and you regrow on him so.
These efforts <unk> recordati throughput rights, which would probably say denounced the punch and and and plan.
And your additional <unk> the final frame of the prices plant the bottleneck and <unk> targets for point Uh-huh full meeting times Brown, while supporting the grants or something I should.
Construction completion condition University Nah is expected in the corner.
Newspaper companies in the fourth quarter to average in Milan line. These but I belong to them you know targeting recovery enemies.
Moving on to slide I'm skipping deep house on how the operations performed Puerto on <unk>.
As you can see how the liver disparate <unk> quarter of operational mm mm.
<unk>.
Wider and we continue to expect marvelously hard for knots and that's in the cost.
<unk>.
We also anticipate continued operational improvement include the increased mind volume.
And with the lines or non funny thing brought online.
You can only probably expect a similar production price off of 2020 and call with one for the production in the Booth <unk> reminding two thirds in the second half of the.
Costs will also be skewed to reflect his crotch and probably fall.
Maybe on the slide nine ended shipyard in the Philippines.
There's already died.
Temporarily suspended underground mining operations, you need June June to the relation of money.
The.
Other end or other underground activity, including pumping as can be the safety and environmental rate.
Prior to taking the log ride stopped all all continued true the third quarter embraces and talk time <unk> pretty for nine struck down in September for playing with mine.
<unk>.
<unk> and concentrate from the start for the <unk>, the third quarter to to the right.
Production from the third quarter remind me, even train and you shouldn't <unk>.
<unk> reminder, old system costs on and I used to produce biases was approximately $420 brown.
No horizon reminds in spite of regular race not in the health and safety around employees continues as a top priority.
Let me have D.S.T.I. renewed or if we were state of fiberglass come from its little paying a court of appeal, we expect originally apprised she.
But.
Looking ahead, you guys fourth quarter out movie and.
And be on logic dependent on conflation with the F.D.R. I renew prices and we continue to proactively guys with their regulatory psychologists.
Moving on to <unk>.
Why they're court production of approximately 16 parents amounts of.
Close to plan with low Amani with Monica model Gripe is on of Queens.
Which are expected to delete she'd be displayed in the first quarter of 2020.
With the math or underground under development respect to be back you production, well I eat and 2021 within our front end processing plant.
My Cats are hints project companion currently working on the studies that we provide them with more than 8000 for blind district planning, including production costs and money and practicing in schools.
Exploration he's ongoing buys underground draws them from the surface or <unk>.
During the third quarter, we reported results from successful extensional drilling and Martha including the inspiration target.
Pretend meeting at grinds between four and six grams per time.
<unk> in addition to the current 331 <unk>.
667000 out.
Gold.
<unk>.
You can comes to the north of why he would continue its little ice <unk>, which I you, yielding you begin to hike right results.
Maybe requires a lot 11 as expected production from <unk>, we're not as high glides from car nice to Cornish North where else there on a normal grind on rule.
<unk> was slightly lower coverage.
<unk> <unk> the crews tend to stand in line with the money digital equipment, which utilize multiple areas with.
Mining from the Guy and Pete.
The company comedy and sure enough to choose from Chris Martin lost in the crime <unk>, there's been an expiration across multiple targets with him and the price called proof.
Continues on Nothing's party for Golden point.
Which is expected to reply surprises underground mine and expand the operation online.
Looking into the rest of the year in a crisis, we expect production the fourth quarter to the Harlem better I am now costs.
Stripping as a war to schools from our national from a nice <unk>.
On the amount of time to presentation I just got Mclean.
<unk> financial performance like it.
Thank you Michael Hello, everyone.
The next two slides cover k. aspects about the quota and eat today financial performance.
Ending to slide setting.
Which provides a summary of their financial results for the corridor and eat a diet.
Critical the quarter on quarter reductions in but revenue enabled.
<unk>, primarily reflect the fact that Q3 included no Golgo Cup of files from to dip yeah.
Just production it sounds volume was only partially offset but 6% increase in the average gold cross received innocent quota.
They put a production that <unk> <unk>.
Plus some as a cute to production on hand. It ended last quota remains in inventory ended available for immediate style. Upon the raced out of normal operation.
However.
Way of production to say.
Cost associated with maintaining <unk> in a state of operational readiness.
Immediately expensive the profit and loss account.
In the said coda.
<unk> non production costs are included in G.N.I. and amounted to 7.6 million.
It's related to mainly to maintaining the underground in a safe and environmentally compliance state plus the suspension of money.
Plus costs associated with the 24 day maintenance shot of the plant as mentioned by Michael.
As a guide we expect a similar level of non production cost the <unk> in the fourth quarter, assuming the operations remain in the state of operational readiness and did not raced out any area.
The reporter to N. pet to the third quarter as Mick mentioned to the aspect was the loss of 22 million, which included.
Unrealized losses of 17 million unusual until a gold hedges, which covered the balance of 20, you know container and also 2020.
As shown in the table the adjusted net profit, which excludes these unrealized noncash hedge losses.
The loss of 5 million or negative one censorship fully dilated.
Maybe down to the cast last time right at the bottom of the slot.
Operating cash flow for the quota decreased 33 million.
233 million, sorry, Oh, five cents to share with minimal change a net working capital Cross Dakota, the guy that probably draw the for the reduction and the third quarter was the reduced styles.
Combined with the Nonproduction costing could.
[noise] third quarter investing cash flow to create 33% from the previous quota.
Lower capital across in most areas of the business.
Particularly pre stripping if I <unk> as was flag to the previous quota.
<unk>, it's capital of deep yeah.
In all other areas of the business where was targeted reductions in the federal.
[noise] moving on to slide 14, which includes some additional capital.
Expenditure information.
As outlined at the top of the title and just knighted total capital expenditure <expletive> Tracy, 33% to approximately 55 million in the third quarter.
But the first one of the title.
Reduction in general operating capital, which was lower across all operations as we decided o. capital possible at the <unk>, but also targeted capital reductions into federals across the rest of operations.
Gross capital was also lowest coda gain partially due to the differ with gross capitalist disappear.
The main areas investment during the quarter wet.
You'd heil expansion, which included the construction of water retention ponds.
An additional pag storage capacity.
Ever internal times cries capital Heil at higher was low a quarter on quota with the magic capital investment in the Regrown sick it upgrade already behind us.
These reductions were partially offset by an increasing dries capital of why he resumes mixed mentioned earlier mouth underground development progress in the third quarter.
[noise] free strip advice high level cries reduce material in the third quarter focus.
We did say an increase in exploration spend in the third quarter related to.
Really in a high value opportunities around way.
We are trimming brought expiration spend in the fourth quarter and expect to come in low the full year as illustrated in the revised gardens ranges noted.
Moving to the you up at a goddess.
See we have increased 20 on any free strip and capitalize mining full cost range.
Reflects how I'm on in cost and contractors support to accelerate waste movement, how can bond with an expectation of commencing pray stripping it led bettering queue for.
The same time, we both I made reductions across.
The capital areas consistent with changes and the operating assumptions are <unk>.
And two other capital.
Plants expected across the fourth quarter.
Naturally we continue to invest strongly an exploration as evaluate <unk>.
Primarily focused on F. I sat in around well he given the puzzle you'd probably <unk> and W.K. pray drilling.
Entitle went out focusing lower for each ethics.
Maybe onto slide see staying which provides a snapshot of that balance sheet.
Is that <unk> tend to 30 cash balance was 56 million.
<unk> Lee available liquidity over 106 million.
I met.
Tend to 30 was 140 million an increased cost around for would've given the <unk> operating cash flow.
And the progressive in tracing capital equipment laces related to the high all morning flight upgrades.
Consistent with Brave previously announced plans, we expect days capital laces sticking increased progressively as the rest of the <unk> sought guys indices.
The comfortable with the ability to manage to balance shake given at low level of gearing and the longstanding support and industry knowledge. We didn't have banking group as we continue to balance the short term challenges presented it disappear.
With continuing to run the rest of access successfully and advancing exciting on getting thrice opportunities.
Well now hand back to make to wrap up the presentation.
Mm.
<unk> [noise] thanks, Michael.
Let me just.
The words too close to that.
Well, just <unk> certainly insane.
We.
They need to future did he'd be always uncertainty we've done so.
As I've mentioned.
We need to work laboratory collaboratively with the national governments.
Advanced via T.I., then you need to Maine toward the three off horizons are on track to <unk>.
Sick due dates rates for all the production <unk> <unk> <unk> <unk>.
That was gaining the current political challenges in the Philippines, the kind of going through on planes to deprive where she'd mind, a tile and ended commitment to advance substantially organic growth part one so far these g.
And just last week tending to the the slide I'd say immigrants lawn <unk> you <unk>.
These projects are expected to do it a significant value just sheer hell was intended to increase the production from talking jurisdictions.
Thursday, the highly expansion through the fog dried horse to deposit.
Which we next year as we said and the third quarter.
We're tracking well with that little setting started.
At the potential of making additional hard drive discoveries two exploration billing from under Dan.
The guys in New Zealand does variance out into the <unk> dancing, well, but I need one legged the studios gripe for us as in in in Milwaukee.
This is <unk> that'd be a kite pay with also represents an exceptional opportunity to train told me up a rice and into a flag into us likes you pass it.
Delivering significant cash flies when she always insignificant socio economic benefits from zero.
<unk> has a chair project as well that might lead gave to expanding and extending them online.
If they say they claim they expect these projects to add more than 200000 adds to the Gulf about some two apple probably a lot of the the mix bodies, delivering launching drive and he really gonna extensions to more or less.
We sat that concludes the formal presentation segments of this but test now take some questions out of it was hard.
I had to wait Ah sod it to the multiplied it to facilitate thank you.
Thank you.
Ladies and gentlemen should you have a question. Please press star followed by one on your attach telephone.
Using a speaker phone.
Your handset before pressing any key.
Please for your first question.
Your first question is from Michael stuff right.
Escape some credit Suisse. Michael Please go ahead.
Thanks, very much of a few I'll start with title from I play. Some festival. When you were caused a group garden. So I'm suddenly on <unk> was there any adjustments your expectation around tile you know when you listen to your woods about a modest production costs. The fourth fourth quarter does that mean, you achieve the bottom interviewed gardens range file or not.
Yes, that's correct, we're expecting the achieved gardens tile sit out in the start of the either.
With the upside for the full year that was largely because we did this year the meat.
Just anything else.
Okay. Thank you secondly, with respect to how recovery you I'm, a little bit lower in the September quarter than the June quarter was that simply reflecting.
The low grade traded the reliance on.
Grad stockpiles in in the September month.
Jim could you answer that place.
Sure.
Hi, Michael has gone Oh, Yeah, Great question as you know we've been working on several projects through the mill facility to increase recovery.
Currently we are running at levels around 80% to 84%.
Projects are going well.
This fourth quarter. The last project to be developed is premier agent, Vicknair, which will help us to control the load into the new fine grinding circuit and we're expecting those improving recoveries to continue up into the next year.
Hi, guys. Thank you.
Got you Jim the Halo.
Improving flexibility between the new fleet, the parts a throughput and recovery.
Right, So real price will flow flexibility should get more pits developed went as high will really hit it straps. When are you at a point on the shades away everything is a is change and it can really deliver what you expect from it.
Yeah I also very good question.
Of course, what we're doing it the way this.
Process is designed the no facilities are actually very hungry now they're running at a very high rate and it's the mine that's having to catch up with mill.
We currently have five of the new seven Thirtys and one of the big shovels.
Built and in the dirt and so I program will continue to bring the second large PC 4000, and the remaining shovels up to 15.
Although it may of next year, So I would suggest somewhere around second quarter, we're really going to be hitting it with respect to feed going to know so.
Okay. Thank you very much moving on to dip <unk>.
If the if a book I'd continues is there anything that can some challenge you I'm thinking if a critical space like pumps and so on for underground broken all stocks Tonight can I phrase in a in stipes is there any any sort of Tom critical stuff there that a that could trip you up.
Yeah, <unk> the pays wasted or.
With the barricades we.
Empty that old hour underground stop basically everything I'm studying why he's ready for <unk>, maybe you know as the country animals running out we sort of from took that opportunity to do that so much to the old the library stops on self publishing nine we have enough space.
With regard to continuing the the big watering the price that side, you know and the racing assigning an eye position of business or witnesses the the workforce things that you can't really stop within two weeks of getting out of yeah. Yeah for production within two weeks of getting I ate as.
Court of appeals over U.S.T.I. renewal so that's.
If my but yeah, so everything gets checked dialing a as part of the retain.
So he saw that the the safety in the environmental compliance remind we still have to have it wouldn't bother you didn't get they get so.
I was still sort of on that track. So that's the yeah. That's the side agreements for <unk>.
Thanks, how was he wants to start with respect to the.
<unk> concentrate <unk> <unk> that figure in a in in <unk> in the Bell shaped that's that's cost if I did some simple mess around average <unk> looks like [noise] in terms of signet realizable value, it's actually but.
Appeared on trade change of about 35 million.
It's it's.
I don't know Makona.
It includes the there's a there's also had oriented <unk> tried on so.
But yeah, it's a substantial amount that we're not.
Trying to draw too much attention to that.
Yep, Okay. Thank you [laughter] and then finally on a on the access to more so when when when you have in a position to see first all from from my sort and then what's the ramp up to read to win.
I can see it and improvement in the in the production probably thought with respect to Martha contributing.
Yes, thanks markedly.
Sorry.
As I mentioned sort of in quarter, one has been the color the coincide.
Or body will be will be completed and we'll sort of just going through the budgeting prices since among the sort of walk down the different mine plan site.
We know that can be 2021, but we havent looked in that timeframe at this point off.
Okay. Thanks Jose.
The study.
<unk>.
Okay. Thank you.
Thank you. Your next question is from Daniel Morgan from U.P.S. Daniel Please go ahead.
Hi, Tim just another question regarding to be a I know you said a two week ramp up once Oh, sorry, you can begin production in two weeks once you've received approvals to do so.
Just wondering after that how much further how much longer as it to ramp up to full production to go from beginning production to a full run run.
Bill a it'll type probably another say late into the back up full production. So we're looking at about a month ago. So I mean, why it was left was the material that was flawed just backing out. So we still got state that arrived and I was just require the flooring and they can then just you know getting them.
Back up and running in the product and the development like pick up or not but we have cybersecurity too.
He's the right to be produced or otherwise, they're getting a full production.
Yeah into the finding of that amount.
Okay. Thank you and then the just moving to the math or on ground <unk> underground and maybe a follow up on a macro supposed to these questions.
With the end of Correnso, which is in Q1 next year is there any gap poor or is there a production shortfall of dropped from Correnso or do you guys straight into a month or.
You know this in a steady production from why he.
After correnso finishes I guess, what I'm trying to get up.
Good Thanks for that question, Dan as Mark said, we're pretty scary production from Grange, this quarter and what the any production from walking for the remainder of the yet and we're just on larger their plans for when we would start up production.
In 2021, but it's likely to be early 2021.
Okay. Thank you very much.
Thank you. Your next question is from Chris Thompson from P.I. Financial Chris. Please go ahead.
Hi, guys.
So just a couple of quick questions, we'll start off with.
With higher here I know you spoke a little bit about you have meeting I guess your your production guidance.
What about the cost guidance there was there any adjustments made to made in the cost guidance.
It it obviously everything is tracking and then a good direction, there, but seems to be a little bit of a stretch to meet the 850 to 900 dollar announce basic cost guidance.
But can you speak to that.
Sure well make yes, then we expect to coming as as Michael and makes it.
Towards the bottom of the production guidance, but now we we won't be hitting the guidance a individual guidance on how it will be.
You know similar levels that it was saying in the in the current quarter and we Didnt, we didn't provide individual thought buyside updates given the uncertainty around the DPL and how that plays into the equation.
Alright, great. Thanks, and then just just quickly I mean, obviously the the stated goal I think is ramp up principally to what does it three and a half.
Million ton a ton of year there.
Where it makes sense when you're going to be achieved that obviously are you beginning to achieve that right now, but what can we go what can we expect to support by way of steady state.
General Class D.
Jason Yep. Thanks to the question we're already at its a state we're hitting that level now like I mentioned before when Mike was asked me about the balance it's all in issue of getting the mine to be able to adequately seed the plan on a regular basis.
But you're getting better and better all the time.
And what we're looking at right now into the teacher is trying to see how we can blend.
Your your basic Mindspeed with and maybe taking some lower grain stocks.
The incremental cost until we can do fully maximize the tonnage throughput on that plant.
That that's where our heads are at right now you know looking into the future.
Great. Thanks for that and then just finally just over to Mcrae is quickly I guess for more specifically going point.
Can you just remind us again.
Where our where are we with economic studies on that as far as timing as well.
Yeah did the studies cuddled employed be done next team.
Probably finish your grandmother sticking up for next year, but yeah. We study, obviously doing a bunch of the price face and getting.
Lots of mine claims to get into some assumptions between that and then that.
The the refer to trade one on one free to you'll be outside of the second half next year.
Great. Okay, guys. Thanks, a lot.
Thank you.
<unk> reminder, should you have a question <unk> star followed by one.
You're in next question and.
<unk>.
[laughter] Seamus season.
Oh I, there mic to see the stock price hundred performances disappointing I think would be it would be an understatement.
Well one of the one other ways that our shareholders had some sort of insurance protection from you know issues like this <unk> in the Philippines was that you'd always espouse the Philippines was a no. It was a land of laws.
Much I mean constitution like the U.S. and yeah sure we were at the provincial level, we lost a court ruling even though you had a letter from the minister of mine, saying you how to permit to operate even though you're F.T.A. had expired now here. We are waiting for the fuel ruling where we thought they'd be really would from a lot sooner than it had so I. So I just wonder if there's something else.
Going on here. So like my question is this after that Gina Lopez tobacco I'm, just wondering what precautions to company took to protect itself from things like this I'm wondering if the company has a proper people on the ground a representation of the local board level and then my question number two is.
Talk about any contingency plans if we're if we're here six months down the road and you still don't have wants T.A. are you still haven't had an appeal ruling from the from the federal courts <unk> what is the game plan.
[laughter].
Yeah.
Good.
We had things the <unk> has.
<unk> capability at capacity and <unk> and we have had until working on me for.
<unk>.
<unk>.
<unk>.
But did he still going through the motions with.
Court of Appeals.
It wasn't surprising that the local court provincial cool.
Deep love give the the injunction <unk>, having said that <unk>.
But it isn't surprising given the why does provincial coursework.
The court of Appeals and you know debate and are they still going through that process.
Yeah, I think it's important to your limit. The this is the first and then it T.I.'s be renewed.
Yeah, very close to getting it yeah.
We are confident that it'll be.
Maintains that contingency plans will obviously you know the <unk> the the.
The the company can overwrite the other slight operations.
Can find out and then it was opportunities yeah, we have a very still a debt banking syndicate and you know. This is this is part of the journey and then when it comes back a lawn you know you'll be back.
Back to business as usual.
Let's see this ours are in stores with you. It hurts me more than it hurts you dive it initially.
Respect to the the frustration close by the.
I've lived in in in the Court system, then for a little things.
They do have a good they belong to grand the do have good connections and their little weinfeld cold or.
Values and alright responsibly in the Philippines as we do it every other countries around the world.
Thank you.
The question is from Jordi marks I'm, Hey, what security. Please go ahead.
Yeah.
Well, just a quick ones yeah.
The T.V. or given given me what the problem right now.
I guess on the on the short term basis, while about the mind place.
And even the.
Requirements, how long the into the same mixed you could you sort of delay stuff or somebody was features.
Some of political crisis to still maintain.
Sort of production.
Sort of production, but.
Dirty lately turn he or very very frames.
Can you repeat the question, but [noise].
Yeah mine I'll try and.
It'd be better yeah, just to just.
Wandering given that you can.
Produce a foster right on a on a short term basis through the plan to to the P.O.
Then then a three and a half.
<unk> capacity just wondering what flexibility you have mixed you two who are delayed stuff.
Into mixed you you two still get two or three and a half million times.
<unk>, what sort of flexibility do you have there.
Well generally that one month.
Flexibility that we now that planes can do public school million, 10th or I didn't Tibet in London Jodie.
Okay, Great Oh leave the plenty of questions before thanks.
Thank you and your neck. Your next question asked from John .
John Tomatoes, very independent research. Please go ahead.
Thank you for checking my question and for your service of the company.
To ask this question again or a different way but.
In the region of digit P.O. in the Philippines.
Is it a separatist movement region at the Central government doesn't control.
And are there.
Nickel or other mining companies.
Respected environment as well.
I'm trying to understand.
Friction.
Yeah. Thanks to that question decent provincial issues, we have this a border the national government and <unk> and issue just move the the <unk>. We do have two provinces there. The the mine are the lab.
And that the the green or problems as well we had another problem with the the governor Corradino in the in his you got the council. The issue is done with the.
Dublin.
<unk> another <unk> in there that this guy which continues to offer right on affected.
There are not allowed to launch into problems.
Thank you.
Yeah.
Thank you.
No more questions from the phone line.
[noise] Ah side that is the same now I think they love it some questions are long, saying.
Yeah, maybe there are no questions on the Q. in a board either so over to you make to conclude.
That's their electing played that webcasting at a conference call.
There will be a reply.
The violable on our website line it to die.
For the same <unk> Jane.
And more itself. Thank you.
But for now.
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