Q4 2019 Earnings Call
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Thank you for standing by this is the conference operator.
Welcome to SSR, Minings fourth quarter and year end 2019 conference call.
As a reminder.
All participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question Q You May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal operator by pressing star and zero I would now like to turn the conference over to Michael Macdonald Director of Investor really.
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Thank you operator, good morning, ladies and gentlemen, welcome to assess our minds fourth quarter and year end 2019 conference call during which will provide an update on our business and a review of our financial performance.
Financial statements and management's discussion and analysis have been filed on SEDAR and Edgar and are also available on our web site.
To accompany our call there was an online web cast and you will find the information to access the webcast in our news release relating to this call.
Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated.
All references to cash costs and all in sustaining cost our per payable ounce of metal sold.
We will be making forward looking statements today. So please read the cautionary note in the accompanying presentation.
Joining us on the call. This morning, our Paul Benson, President and CEO, Greg Martin, our CFO, Kevin O'kane, COO, and Carl Edmunds, Vice President exploration.
Also present, its John Decooman Senior Vice President business development and strategy now I would like to turn the call over to Paul for opening remarks.
Thank you Michael.
Good morning, ladies and gentlemen, and welcome to our coal to discuss our operating and financial results for the fourth quarter and full year 29 chain.
Pleasingly. It was another successful year for us as we continue to deliver on our strategy of creating value for shareholders.
As we start 2020, we have strong operations, each providing solid production metrics right. That's much good mine lives and exploration upside.
In 29 team that continued focus on operational excellence resulted not on the you know eighth consecutive year of achieving production and cost guidance was also a best <unk> as an operating company in terms of that safety performance.
Strength of our portfolio and performance is reflected in our cash balance way. We ended the year, we're talking about half a billion dollars in cash.
Each of our minds exceeded the top end of production guidance and I also said new production records, that's marigold and see that you're well positioned to continue growing gold production and if they achieved the midpoint of 2020 gardens. They will each set new production records.
The tuner operations the mine successfully ramped up to steady state after declaring commercial production in late 2018.
Turning to finish the year on a very strong not silver production of 2.1 million ounces at an all in sustaining cost of $11 18 per ounce in the fourth quarter, demonstrating robust margins of today's silver price.
Importantly, all three operations of significant mine lives and we're continuing to invest in the <unk> upside potential we see.
Yesterday, we released at 29 Teen Reserve and resource report, which once again highlighted the exploration success, but marigold in CV and built on our track record of mineral reserve and the results gross.
At Marigold mineral reserves increased by 18% to 3.9 million ounces at a slightly higher head grade 0.49 grams a tonne.
In any of that would be an impressive result, but it's all them. All so when you consider this year Marigold should produce is 4 million sounds no study first year of continuous operation a.
The real reminder, if one is needed what a truly great mine ideas.
Let's see V., we increase measured and indicated mineral reserves and by 23% to 1.1 million ounces with an additional 583000 ounces of inferred mineral resources, an increase of 21%.
Tissue outside this will turn to converting these ounces into reserves.
On the M&A side, we completed the acquisition of by Trenton Canyon, and Buffalo value from Newmont.
This acquisition brings that land holding in and around Marigold, almost three times, what it was when we bought them on in 2014.
President Kenyan provides but outside exploration potential as a supplement to marigold and high grade sulfide exploration potential of dips.
We also completed the acquisition of the remaining 25% interest into that we didnt.
2019 also not the release of our local sustainability report.
The report was an excellent collective effort from all that mine sites in corporate office.
Look forward to the release about second annual report to be published later this year as we continue to inform the public about all the initiatives, we implemented across that portfolio I mean, the communities in which we operate.
In summary, 29 team was another successful year for us this armani and I'd like to thank our employees for delivering these great results that have positioned us for a year a strong operating cash flow in 2020.
With that I'll turn the call over to Kevin will discuss our operational performance in more detail.
Thank you Paul.
We finished 219 with strong operating results for Q4 and for the year our safety performance. During the last quarter was very good and the recordable incident rate for 219 was the lowest in our history as an operating company.
Operationally to 19 was a successful year across all three sites, we achieved overall production and cost guidance for the eighth consecutive year.
In total we produced 421800 consolidated gold equivalent ounces.
Including 106200 gold equivalent ounces produced in the fourth quarter.
Cash cost for Q4 was $716 per gold equivalent ounce well cash cost for the year were $740 per gold equivalent ounce.
Each operation exceeded the top end of production guidance for the year, we set yearly production records at all three sites. This was driven by higher grade at CB and strong operating performance at Marigold.
Good operations have stabilized as we had previously indicated would occur with significantly improved mill throughput and metal recoveries in the quarter.
At Marigold, we produce 59200 ounces of gold in Q4, 12% more than in Q3, mainly due to stacking of higher grade ore in the third quarter that released from the pad during Q4.
To 19, the Marigold mine produced 220200 ounces of gold.
Surpassing the upper end of our production guidance. This compares to 205200 ounces of gold produced into 18.
Production to 19 benefited from higher grades and or stocking in the fourth quarter up to 18.
Cash cost for Q4 up to 19 were $778 per ounce.
5% lower than in Q3 219.
Cash cost for 219.
$811 per ounce during Q4, approximately 6.7 million tonnes of ore were delivered to the heap leach pads at a gold grade of 0.36 grams per tonne.
This compares to 6.4 million tons of ore deliver to the leach pads at a gold grade of 0.51 grams per tonne into third quarter.
Gold grade mine in the fourth quarter was 29% lower than the third quarter due to planned mining of lower grade material into Mackie pet.
The strip ratio declined to 1.7 to one of the quarter, a 12% reduction compared to the previous quarter.
During the quarter 18.5 million tons of material, we're buying down 3% from the third quarter due mainly planned maintenance of one hydraulic shovels and longer haul it cycles associated with the increased or stacked.
The mine took delivery of a replacement hydraulics trouble at the end of 219 and commission will be completed during Q1 2020.
The new Leach pad. So it was commission on schedule and on budget with or stacking and leaching commencing in the fourth quarter up to 19.
Material mine during the year total 74 million tons of 5% increases compared to 218.
Marigold stock 25.7 million tonnes of ore under leach pads during 219.
Moving on to CV. The mine produced 22100 ounces of gold in the fourth quarter of 219.
32% decrease compared to the third quarter due to lower mill feed grades.
Aligned with the reserve grade more than offsetting higher milling rates cash costs were $505 crowds compared to $373 problems in Q3 219.
Higher due mainly to lower production from the lower feed grade.
During the fourth quarter 87400 tonnes of ore milled at an average grade gold grade of 7.9 grams per ton in recovery of 97.9%.
This compares to 77500 tonnes of ore milled at an average gold grade of 12.4 grams per ton and recovery of 98.8% in the third quarter of 219.
Plant throughput reached 1057 tonnes per day in December as we started to see the benefits of the OE projects implemented during the year in the mine.
CV produced 112100 ounces of gold and to 19 and annual production record from higher gold grades improved recoveries, resulting from improvement projects.
And drawdown of in process inventories the production in 219 was 17% higher than into 18.
A total of 104900 ounces of gold were sold during the year.
The annual cash cost afforded and $64 Browns was a record low under SSR mining ownership.
And to 19, the operation mill 344000 tons of or a 2% decrease compared to 218.
During the year average gold mill feed grade was 9.56 grams per tonne.
4% higher compared to the average gold grade milled into 18.
As previously reported we're expanding the capacity of our tailing storage facilities to accommodate the expected increase in my life, we completed 100% of the to 19 scope for the tailings expansion project. During the first half of Q4 219. The project remains on time it on budget.
Preparation for the annual ice wrote at CV are well underway and transport of materials has commenced.
Good operations produced 2.1 million ounces of silver during the fourth quarter, 28% higher than the third quarter of 219, mainly due to higher mill throughput, which averaged 4000 traded and 48 tonnes per day for the quarter. The increase in plant throughput reflects improvement projects implemented during Q2 Q3.
Silver sales totaled 2.6 million ounces.
Cash costs were $8, a 90 cents per ounce for the fourth quarter compared to $14.22 per ounces of silver in the third quarter, mainly due to higher silver production and byproduct credits into 19 prune operations produced a total of 7.7 million ounces of silver 24 million pounds are glad at 8.4.
Our million pounds of zinc.
Silver sold equaled production for the year after declaring commercial production that's in CIS in December 2018 to 19 represents the first full year accrued operations.
Links and she is open pit or.
During 219 or was mills at an average of 3800 tonnes per day ore milled contained an average silver grade of 184 grams per tonne.
The average silver recovery was 93.2% higher than was projected in the projects PFS and a 29% improvement as compared to 218, when the operation process, primarily at low grade stockpile door.
In summary, the operations again delivered solid safety performance of production results during the quarter and we achieved a record for full year gold equivalent production at all three sites I will now hand over to Carl who will take you through our exploration activities.
Thank you Kevin.
The objectives of our 2019 exploration activities varied by site, depending on where we saw the most opportunity to add value.
As a reminder, we had a prolonged effort to convert the remaining portion of Red Dot resources to reserves at Marigold.
As the year developed we added exploration lands at the south into the property.
In contrast to Marigold at CB, our focus was on adding underground resources of GAAP hanging wall proximal to the existing underground infrastructure.
We also continue the exploration of Greenfields concepts close to our minds.
Our 2019 exploration activity successfully expanded corporate mineral reserves over and above mine depletion for the year.
At Marigold, we converted the remaining mineral resources at Red Dot to mineral reserve.
At CD, we significantly expanded mineral resources that GAAP hanging wall, while continuing to generate early stage targets on the Fisher property.
It is worth noting that we've used the same price assumptions for reserves 1200, $50, an ounce and resources 14 under dollars per ounce for the last four years. So reported gains are not price driven.
Note that we report our resources as inclusive of reserves and that all 2019 figures account for depletion.
Marigold probable mineral reserves are 3.89 million ounces of gold showing an increase of almost 18% as compared to 2018 and at a higher average reserve grade.
The increase is due to mineral resources conversion success at Red Dot phases, two and three.
Referring to the chart, which graphically shows the results to reserves at Marigold depletion and model changes amounted to 330050 thousand ounce reductions respectively.
Conversion at Red Dot and exploration additions combined with pad inventory changes added 960000 ounces.
I want to point out that the modeling changes remove martin marginal material improving economic performance of the mine.
In summary, the impact on Marigolds reserve position at significant resulting in a year over year. Net addition of 582000 ounces after depletion.
As shown indicated mineral resources now totaled 4.94 million gold ounces and inferred mineral resources totaled 182000 ounces.
For Seabee gold operations proven and probable mineral reserves or 500000 ounces at an average grade of 10.2 grams per tonne after depletion of 108000 ounces.
The reserve grade has increased by 10% compared to 2018.
Recall that in 2019 redirected our exploration towards resource addition, and that work has resulted in a year over year net 23% increase to see these measured and indicated mineral resources after depletion, which now are.
1.050 million ounces of gold.
Inferred resources or 583000 ounces and have increased by 21% compared to 2018.
The success of our resource addition, at CBS due to the continuity in grade present, it GAAP hanging wall, which was a discovery that we announced in the fall of 2017.
Tuna proven and probable mineral reserves totaled 49.7 million ounces of silver an increase of 28%, reflecting the acquisition of the remaining 25% project interest that we did not already own.
She is mining depletion design and cost changes accounted for 1.4 million ounce reduction.
Measured and indicated mineral resources totaled 110.7 million ounces of silver.
Including open pit underground and stockpile inventory at the combined sites inferred resources totaled 42.7 million ounces of silver.
Regarding our 2020 exploration development plans, we focus on growth at or near our existing assets.
The North American operations, there, a greenfield and brownfield activities.
Plans for 2020 include drilling activity increases it both marigold in CB compared to previous years.
At Marigold, and Trenton Canyon, we plan on spending $12 million and 2020, a 29% increase compared to 2019.
We intend to drill 14 kilometers at follow me east the salt in Mackie pit targeting reserve growth and 900 kilometers of drilling near Mackie Crossfire involved me directed towards resource growth.
Planned drilling at Trenton Canyon includes 29 kilometers towards oxide resource growth targets plus additional work for projects Scoping and engineering studies.
We began work at Trenton Canyon in the fourth quarter of 2019 and are confident in the potential to define resources here.
With the recently consolidated land position, we've commenced a 2 million dollar core drilling program directed towards the discovery of high grade sulfide mineralization.
At C.D., we plan on spending $12 million, and 2020 or 37% increase compared to 2019.
Exploration plans include 37 kilometers of surface drilling for resource growth near both Santoy NCB mines.
Underground drilling directed towards resource conversion in growth total 50 kilometers with 40% for GAAP hanging wall and a conversion with the remainder on other resource growth targets.
Work at Fisher remain split between Summerfield programs.
And 12 kilometers of drilling on Batman Lake extension, Mac, North and South and Fisher South.
Now over to Greg for a discussion of our financial results.
Thanks Carl.
As you have heard from the others are operating momentum continued through the fourth corridor, which combined with higher metal prices drove strong financial performance.
The quarter on quarter trends through 2019 has been positive so the expectations, we laid out at the start of the year of sequential improvement in financial performance with the ramp up of to an operations have been delivered.
Particularly in this past quarter the contribution from two in operations was a notable improvement while marigold and see the also continued their respective trends of delivering predictable strong performance.
For the fourth quarter, we reported revenues of $177.6 million, an income from mine operations of $58.9 million.
These were increases of 71% and 256% respectively.
Relative to that comparative quarter of 2018, and increases of 20% and 13% percent respectively compared to the third quarter of 2019.
So positive trajectory to our operating performance.
Our net income for the fourth quarter was $19.5 million or 16 cents per share.
This was well ahead of the loss reported in the comparative quarter and in line with a third quarter.
Improvement in mine operating earnings relative to last quarter were offset by higher stock based compensation expense.
Hi are expensed exploration and higher tax expense.
Stock based compensation was driven by our strong share price performance and tax expense.
Which was partially driven by stronger operating margins at the mine.
However, similar to the third quarter inflationary tax adjustments applied in Argentina added $6.8 million of noncash deferred tax expense.
Items under our control remained in line with historical and expected levels.
Adjusted earnings for the fourth quarter totaled $36.6 million or 30 cents per share compared to $28.4 million in the prior corridor for an approximate 29% increase demonstrating more clearly the quarter on quarter improvement in performance.
Turning to the annual numbers. These really highlight the shift in the company over the last year.
Revenues of $607 million were 44% higher than the previous year.
Mine operating earnings of 171 million were 123% higher than the previous year.
Net earnings attributable to our shareholders, a $57.3 million or 47 cents per share or almost a tenfold increase from the five cents per share in 2018.
Adjusted net income from the year totaled $98.2 million or 81 cents per share more than triple from the 23 cents per share in 2018.
Turning to cash flow, we continue to generate free cash flow during the quarter, adding $29.2 million to our cash balance that now totals over half a billion dollars.
Cash generated by operating activities in the fourth quarter was $48.6 million, taking our full year total to $134.2 million, an increase of 124% from the $59.8 million in 2018.
As I have commented in previous quarters, we continue to have significant working capital and concentrate receivables due to both the ramp up in volumes and increase in metal prices.
As we maintain a steadier pace of concentrate sales working capital will not continue to impact cash from operations.
Cash used in investing activities totaled $22.3 million a reduction from the $29.3 million invested in the third quarter as seasonal construction at CBC at Marigold completed their pad build.
All three mines came in under their guidance for total capital as a significant projects were well managed to budget and schedule.
The Chinchillas project, which was completed $6 million under our announced and never revised budget has now been closed.
But she is complete and the balance sheet strong our focus remains on identifying high return opportunities at each mine and continuing our more aggressive investment in exploration for continued growth.
We closed the year with $504 million of cash and through this strong performance of our investment in Silvercrest marketable securities balance totaled $66 million.
And today, our investment in Silvercrest is about $7 million higher than a year end.
Our $75 million credit facility as Undrawn and couldn't provide additional liquidity if needed.
So, we're really well position to continue generating fundamental value within our asset and assessing opportunities to deploy capital.
We are in the process at redeeming the $115 million of outstanding 2013 convertible notes.
And once complete our remaining debt will be the $230 million of convertible notes due 2026 issues last year.
So debt is modest and termed well into the future.
We released our 2020 guidance in January which showed our expectations of growth at Marigold, and CB and solid performance and put it operations.
For 2020, we expect production of 425000 gold equivalent ounces at approximately 740 dollar cash cost per payable equivalent ounce.
Get both Marigold in CV can hit guidance midpoint, they would again each set new respective production records.
DB continues to emerge as a significant free cash flow generating mine.
At Marigold with exploration, adding significant life to the mine and with the approval of our E. S. In 2019, we're continuing to invest in the infrastructure to support the longer mine life.
For 2020. This includes further expansion to leach pad space and related infrastructure.
The watering infrastructure and replacing two older high cost haul trucks.
In a similar situation at CV with GAAP hanging wall emerging as a significant discovery. We are completing phase one of the tailings expansion and moving directly into phase two which results in a more efficient construction schedule and provides tailings capacity into the 23.
Ladies.
Our balance sheet provides us the ability to optimize these assets for the long term.
Looking forward to the first quarter I'll, just remind listeners of the seasonality of CB Capex and working capital as all physical goods and equipment are brought in over the ice rode through February and March.
This seasonality as capital and pack CBS reported all in sustaining cost in the first quarter as well.
The macro backdrop looks positive here early in the year with precious metal fundamental strong and oil and other commodities remaining range bound.
But those comments I turn the call back to Paul.
Thanks, Greg.
So in summary, we continued to be very proud about consistency, having met or exceeded production and cost guidance for the <unk> straight year.
We are well positioned to continue this momentum with 2020 production forecast to grow to approximately 425000 gold equivalent ounces with strong margins at current metal precious metal prices.
We also continued to invest in our long term future through exploration with strong results of both Marigold in CV.
29 team continue to track record of creating value by increasing mineral reserves and mineral resources each year and we expect to do the same this year.
Looking ahead to SSR mining strategy remains consistent focus on delivering safe production, while investing in our assets and executing on a growth strategy to create value for shareholders outlook for 2020 and beyond remains broad.
This concludes the formal remarks about earnings call I'll now pass aligned to the Alfredo to take any questions you might have.
Thank you we will now begin the question and answer session.
He joined the question Q you May Press Star then one on your telephone keypad, you'll hear a town economic thing your request.
If you are using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then to once again to join the question can you. Please press Star then one now.
Our first question comes from Cosmos, Chiu CBC World markets.
Hi, Thanks, Paul and team. Thank you for the for the conference call here.
Maybe my first questions on Marigold, Kevin as you mentioned you know, there's a new Leach pad you started stocking order new Leach pad now can you speak to any potential positive impact a recovery on cycle time, as you know stock or on a on a new leach pad given that it's lower down.
Oh percolation is gonna be faster you know the leach kinetics anything positive that you can speak too.
Sure no. Thanks for the question Cosmo and we started solution applying solution to that Leach pad right at the tail end of Q4, and so we're seeing the benefits now.
So we should its positive for Q1, but it was part of our plant as part of our guidance. So there's nothing different then once you've already been advise or whatever would have read.
For sure and then I guess, you know not you felt the need to Leach pad wettest a next sort of you know construction of the next leach pad.
Oh, we're in the where the process of approving the next leach pad, which would start construction. This year, it's in our because in our capital guidance for this calendar year.
And I were in that we're in the early stages.
Developing a pad that would probably be built the year after next.
The tail end of next year, so, it's an ongoing and ongoing process to make sure that we optimize irrigation ratios and the leaks times.
Sure and how hyades I haven't been to Marigold for few years now how high are these leach pad. So some of the older Leach pads like how how high do they go but they get to about 400 feet. So 121.6 me [laughter].
Great maybe a again on Marigold, a bus switching gears a little bit you don't congratulations on a increasing the reserves at Marigold, but I also noticed at a total resources decrease a little bit due to depletion and impart due to revised slope angles.
I'm just wondering you know if you can give us a bit more detail on that a change in assumption is that based on what you've observed in the current pit or is it just based on you know being a bit more conservative as you.
Consider going deeper into the pit.
Yeah, I'll, just make a comment to some past to Kevin Thanks Tal.
Yes, you got to remember each year, we tend to move the focus of what would the objectives are in the expiration dishy. It was very much driven around.
Getting the phases, two and three of Red dog into reserve. So yeah, we didnt have drill rigs elsewhere looking for additional resources. So don't read too much into the drop in resources that will be the focus this year, but in terms of the engineering slopes and.
The as you would know when we first due to the initial evaluation of the pits, we make assumptions for the slope angles and also where the ramps go.
And then with further engineering and our external consultants.
The size of the high with Red Dot and and the ramp configuration is different which actually has a change the impact of the ultimate slope.
Modified the slope slightly but as Paul indicated I mean, it's still early days with them that final slope is quite as some years away <unk> yeah. Kosmos. Some I would also add that in addition to the the cost and slope changes there was a minor amount of losses, the north end of Red Dot, we called that area North Red Dot previously.
Mhm.
Okay.
Great maybe moving on to see be quickly here CB Santoy averaged about 950 ton per day. In 2019, you know as you mentioned you know you able to get to about 10 50 tons per day in December is that.
Kinda throughput sustainable I only ask because you know if I want to take your 2020 guidance into consideration and if I were to consider 10 50 tons per day for 2020.
Your production guidance seems to be a bit a conservative let's let's use that word. So I'm just trying to reconcile those two and on that as well you know if you can remind me what's the bottleneck right now as CB Santoy in transit throughput is it the mill or is it the mining portion.
Oh commences and Kevin can add anything thanks, Paul Yes.
We've we've indicated we've assumed 10 50 tons per day for the years I'm not sure have.
You bet calculated you must be making some assumption on a head grade or something like that but yeah. We are comfortable we're comfortable with the guidance and as always we'll review it as we go through the yet, but we're assuming 10 50. The bottleneck is definitely the the mine what weve shine through some of the graphs in the presentation you know the mill can comfortably.
We're on a 1200 and yeah. We've had dies. It go as far up is 1400. So it is focusing on de bottlenecking and the mine and hopefully we can get it above that 10 50 number but that's certainly the focus for the issue than anything else I know that's okay.
No I only ask Paul because you know if it's 950 tons per day 412000 ounces last year, and then 10 50 tons per day 410 220.
Thousand ounces that that's what I mean, it's kind of flat production, what the increase in throughput, but I think I understand your point in terms of Ah you know the head grade.
Okay. Good luck.
Maybe one last question here, if I may Argentina.
Oh, no we've seen somebody a competitors talk about the difficult situation in Argentina, and somebody a competitor's I've actually taking a write down on it also talking about export taxes potentially increasing by about 3%.
What was put out a I guess a year and a half two years ago. Now you know could you comment on the export taxes and and you know in terms of the a working environment in Argentina, and how you approach the how that might you know change your approach to Puno.
Sure, let Greg I first [noise].
Sure. Thanks Cosmos.
[noise] I'd say on balance will you know, we're not seeing any real since stantec changes in the operating environment. There. Obviously, you know inflation continues to run high and you know in the currency has been stable loves late but obviously depreciated a fair bit last year. So as we commented before our focus really is on.
That relationship between inflation end devaluation, that's what most effects that operating performance of the asset and as you saw from the fourth quarter, you know the assets performing very well <unk> export duties were introduced a while back they've stayed at the same rate and the adjustments that the government made recently had no impact on.
Duties that applied generally to the mining goods. So I think they continue to see mining as an important industry to generate export revenues and hard currency that as a requirement for the country.
And where we operate up in the northern part of Argentina, We have a very Ah you know I think support other than cooperative relationship with the local authorities that continues to see good stability and the operation. So we did you know as as noted in our financials. We did test our asset for impairment, we did not record.
And any impairment charges as a result to that testing <unk> great.
Thank you those all the questions I have thanks a lot.
<unk>.
Our next question comes from Chris Thompson of P.I. financial.
Hi, Good morning, guys. Thanks for taking my questions I think a cost was.
So a lot of the question. So I was going to us, but I guess, just generally looking at the Capex costs I mean, I I support your decision to invest in the assets there good assets.
But generally speaking looking at Marigold, maybe next year and you did allude to the fact that you're going to be continuing to build leach pads that we can we expect similar sort of capex expenditure at marigold.
We havent given guidance the 2022.
Oh 2021, yet.
So yeah whatever is in the technical report to me I use that as a base I think.
What Kevin alluded to you it's always a balancing act with some leach pads you could you can build yeah. If he doesn't build them. They get how have you have other restrictions in terms of pumping solutions I was just a balancing act and yeah. We're trying to get that trying to get the optimum result.
Yeah, no okay. Good enough.
Hi, guys. Thanks, a lot.
Thank you.
Our next question comes from Adam Graf.
Hey, guys. Thanks for taking my question just real quick I think kosmos to use most of the questions up but.
[laughter] just one it's just a quick question about a extracting or free cash flow out of Argentina, What's your current mechanism and it will that change through time and will that present any.
Challenges as far as you guys can see.
Sure Adam Thanks, Seth for the question you know similar to how we've operated over the last number of years in Argentina. You know, we we'd been successful before through you know the previous a number of years to extract that capital that we needed.
We continue to have an intercompany loan structure in place that we used to fund part of that she has construction that provides one avenue and you know and dividends are Stella an avenue for repatriation out of Argentina again, everything we've seen we haven't tested that mechanism of late but certainly the you're getting the government is.
Continued terrorists backed or any of the you know regulations that are in place from our perspective.
So so Greg it's your view that a once the intercompany loan facility runs its course, you'll switched the dividends effectively and and so far you haven't seen any issues. There are four other operations extracting cash out of the country using that method.
Yeah, again, I won't say I won't speak on behalf of others. We haven't tested the dividend mechanism of late but in general in regards to our there you know actions with the government on regulatory and then fiscal and exchange issues, we have not run into any particular challenges it as of.
This time period.
Alright, fantastic again, great Congratulations guy guys, I'm, finishing up but 2019 very strong.
Thanks.
Thank you.
Once again, if you have a question. Please press Star then one.
No I think we're looking into Q there on anymore I think Cosmo go live questions for us. So we'll leave it at that so thanks very much everyone have a good day.
This concludes today's conference call you may disconnect your lines.
For participating and have a pleasant day.
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