Q4 2019 Earnings Call
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After the speaker presentation, there will be a question and answer session.
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I would now like to hand, the conference over to Mike Mcallister VP Investor Relations. Thank you. Please go ahead.
Thank you operator, and good morning, everyone welcome to fear metals yearend in Q4 2019 results conference call on today's call. We're joined by Igor Gonzales, Our president and CEO as well is that you merits. Our CFO today's call will be followed I've mentioned by the operator by a question and answer period today the company presentation.
It's available for download through the both the web site and from the company's website Triple W. dot figure and metals Dot com.
Yesterday's press release, and the financial statements and the management and discussion and analysis are also posted on the company's website.
Before I turn it over to slide three before I turn the call over to Igor I'd like to indicate that this earnings call contains forward looking information that is based on Macquarie.
Companies current expectations.
Okay and beliefs.
These forward looking information, it's subject to a number of risks uncertainties and other factors actual results could differ materially from our conclusions forecast or projection as reflected in the forward looking information.
Additional information about the material factors that could cause actual results to differ materially from a conclusion forecast or projection in the forward looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward looking information is contained in the company's annual information form which is.
Publicly available on SEDAR or Edgar bio form 40 F or on the company's website.
Please note that all dollar amounts mentioned in today's call already in U.S. dollars unless otherwise noted.
With that I'd now like to turn the call over to Igor Gonzales, our president and.
You see the right here.
Mike.
Good day everyone.
Before I.
I would like to seek a moment to provide you are not see.
About the <unk> 19.
I think.
And how the company has been impacted to beat the actions that we're taking too.
Mitigate a.
Well workforce and the company.
On March 16, the movie in government declared a.
Urgent.
<unk>.
Yeah.
Game.
Some of the country, let's not group you pulled the population nighttime.
Okay.
Oh, it's order, we mobilized or.
<unk>.
Okay.
Yeah.
And order every employee.
Thank you Barry.
From home.
And we were able.
Uh Huh change.
I'd now reality quicker mine.
And.
Then on March 26.
And the government also.
Because they see those Newport Beach, another 13 days until April well.
[laughter].
And Uh huh.
Where we left.
Getting back to normal range.
Goodness that'd be ultra rugged until after the emergency.
We have no pieces of real good night.
For example.
On the essential to school remained benign.
Following our.
All right.
Oh, the Brazilian helpful Redone, and they will help support organization.
Baby and medical checkup.
And no contact with Ah outside personnel.
The essentially its search HM.
Basically had blaine.
Support or.
On the it.
Infrastructure.
Hi.
And ER.
We are going to me.
[laughter].
Yes.
Yeah.
Washington facility.
And.
I'm going to on hand constantly shipping.
Indicates a bar you kind of operations.
Right the Mexican government.
We're starting to emerge.
Go for 30 days.
Right.
So far operations in Mexico.
Normally.
And we're waiting for Oh.
A big government too.
Well I was like Wonder hour.
Agents are included in <unk> or.
Emergency or we can continue to operate so far we've been operating.
And then automobile.
Nick.
And of course.
Any dynamic a.
Situation.
Now.
Moving on to.
Slide number six.
Based on the Cobra.
19 update I, just provided and our outlook for the company.
Not to mention.
Due to uncertainty.
Oh, the effect of called the 19th and then.
Good tab on our company operations financial condition.
I mean can develop in the company could be implemented.
He brought Steve and reactive deviation measures.
That's a potential corporate night he might have analyses will continue to be celebration black tea and finance.
You mentioned also that we have right.
Well on each one of our mine and we have be calls too and they hope you decisions and.
In order to cope with they are right.
It's also includes the preservation of capsule deferring capital program.
Google liquid.
The company's competing it's got due to its operating flexibility Oh, you already finding food.
On the normal operations at least Mexican money at this moment.
If material changes for the company with a beat guidance from please.
To provide a more comprehensive update.
The most data points on metal prices and operating development outside of the Q1 2020 reporting process.
Turning now to the highlights on slide number seven.
We will now provide the highlights for the full year.
2000, 2019 wasn't please.
Yeah.
For the company as we completed.
That's true and completed production ramp up both of our Mexican mines.
These provided to us significant meaningfully in the consolidated production.
Well Oh battles over 2018.
Also we called the tonnage that was well you got to strike action I'd be happy coach I might need for <unk>.
Improve.
In 2019, we beat.
Lower oil prices.
Hi, Ya Man I'm, just trying to chart.
Well, we really <unk> green.
LIBOR going back from cost.
Primarily related.
The development work, which was required to achieve high throughput.
Yes.
Despite the challenges the company generated.
A significant amount of operating cash flow, which had been allocated can't.
In order to foreign capital expenditures and then thinking.
Furthermore, we continue to high school returns on the best it.
You know well, but.
Looking now at slide number eight.
Revenues from both payable in 2019 word.
29 million.
65.3 million of adjusted.
Consolidated throughput.
<unk>.
Million tonne metal production.
Oh.
112 million copper equivalent bombs or.
Silver equivalent ounces or.
I'm doing the.
Good luck.
2019 years.
We finished the here with a catch patterns of 43 million.
<unk>.
Slide nine.
You can see when I consulted beat.
We had.
A year olds.
Operating performance.
15 puts in Cleveland.
Okay.
Okay.
I'm pleased to all metals.
Compared to 2000.
The middle to me.
The percentage of revenue.
Okay.
The way representing 38% of revenue.
Good.
Do you.
The reason.
It's followed by anybody.
From.
19% from felt very.
Well listen.
<unk> percent from gold.
Turning to slide.
Taking a closer look each mine now.
That's a follow up 20%.
2009, but since 2018.
Do you need to London.
Great.
Working that's fully recovered lost on into April.
Hey, it's flight earlier in the year highest let him go head grade highly coverage up all metals were told that no 43%.
Well in Palm <unk> doing 2019 as compared to 2008.
That's great a 46 cents.
Well in April pounds were loaded yeah, we got yet.
Yes.
In 2019 over 2008.
Whereas the all in sustaining cost.
I'm, saying that.
Seven.
Nine cents per seat Goodland payable upon how you I thought we sold them heightened sustaining capital.
And I mean.
The <unk>.
<unk> costs as compared to 2000.
Hi, equal or the Saudi operator.
I agree your line is a little choppy are you able to move closer to the microphone.
They better.
God Little choppy still a can you speak.
Yeah.
Well, it's because the best I can tell them.
Home so.
I'm not going because I can get to due to the microphone that better.
It is a little better yes.
Yeah, Okay management continues to focus on cost reduction initiatives I'm very blend in patient.
Which are going forward.
The every quarter mine continues to be a solid performer for the company.
We continue improving the mine with a focus on the expansion.
600, Tom for me.
Expected later part of 2000 to it.
Work completed on the tailings dam expansions I'm, we're waiting for me to commence production I'd be higher throughput levels.
Harbor government policies related to permitting up you can.
Deferred during the state of emergency <unk> 19.
Which may result in late two this brings me to be sure.
Work also continues on a.
Good XT 820 level 720 level are you every quarter, which would provide.
And Oh.
At least 10000 tons per month of increase capacity.
Look for ways.
And now he b b it brings.
This will help mine to more efficiently and help compared to reduce cost.
Furthermore, surface drilling has command high body targets, such as going out there or not.
Yeah.
We recently received permit.
<unk>.
These non essential exploration.
During the quarter to preserve capital until we have more clarity on Colby 19 Brendan.
Finally, the yellow decor truck.
Reserve and resource update what he should be in December with a full.
43, one to one technical report.
In February.
Pretty 20.
No reserve.
Carnage greets, 5%, which included nine degrees.
You know classification improve as the proven reserves increased 45%.
<unk> decreased 18%.
Turning now to slide number 11.
Boy, we had an excellent you realized 22%.
Throughput, which was a record along with them I couldn't tell production, which included 28% greasing copper equivalent bombs produce when compared to 2000.
Volleyball realized at 11% reduction copper grade that was upset by up 46% greasing throughput.
59%, Greece in Okay, great and a 12 and increasing Super head grade.
Additionally.
We were able.
To achieve improved gold and silver recoveries that decline due to the significant blending and the company I've made during the year.
We expect copper grades to modest city group in 2020.
We source more ore from both ways. So I'd be tone has higher copper silver and gold grades.
<unk> cost for copper equivalent payable pound increased to $1.73 cents.
And the all in sustaining costs were hired $2.86 in 2019 versus 2018. This is attributable to higher labor contract through cost related from scope and ramp development within the mine to increase throughput.
<unk> sustaining capital expenditures were higher due to equipment purchases mine development cost exploration drilling and blasting improvement.
Bullied by reach an average throughput of 3628 tonnes per day.
In 2019.
To ramp up to approximately 5000 tonnes per day by the fourth quarter 2020.
[laughter]. They didn't mean are we serve resources with issue to be March 31st 2020.
Which includes drilling programs completed.
Remember 2017 and December 2019.
As well as production data up to December 2019, and represented 5% decreasing mineral reserves tonnage. So indicated mineral resources increased by 48 cents.
The 2000 Thirteen's didn't cover report and 68%.
But 90 upstate.
Total you for mineral resources increased by 268%.
On the October 2017, Technical report and the 29% in December.
It's a 19 update.
Okay, and I 43, one of things go report will be flat within 45 days.
It's worth mentioning that the drilling occurred mainly at the <unk>.
Got you pretty or what degree.
Typically no higher than 0.7 0.8 copper even feature.
You broke drilling is still plan for the voted by waves and west extension or after both but no with sawn wood.
Which I consider high value targets.
But if we could not be grill due to contract or delays in the developing obese area.
Which would have contain it strategically placed into other stations.
These area.
Being higher copper grades up to 1.5% copper you'd see too as well as increased gold and silver grades which were previously reported.
Subsequent infill exploration programs I plan on in these areas in the coming here with the goal of increasing target tonnages and grades.
Great then I'd vote.
Oh, so based on.
On the large increase to the mineral resource.
Resources. The company is committed to updating the P. Eight for the ball with our mine, which will provide us with a clear path forward to Florida potential expansions at the mine.
The previous P.A. recommended an increase of production to the 5000 sunpower being level 2021, and we are very close to achieving that level of production.
Turning now to slide.
Number 12.
In 2019 Goosey average.
Throughput was a goosey average throughput was 18.
Hundred on 50 tons per day, which was at 20% increase over 2018.
The mill has the capacity to produce at 1200 tonnes per day level, but due to the subsidence I've been mine and the need for additional developing the my continues to ramp up to 1200 tons per day level, which is expected to reach.
The second quarter of 2020.
The increase in throughput resulted in a 27% increase in silver equivalent ounces produced despite the lower head grades and recoveries realize world metals developing delays due to the heavy rains as well as a need to with the subsidence in the third quarter quite a 16 meter.
Hi pillars.
It left in place to ports the ability for because this.
That's a result of the delayed development lower grade zones that were accessible where mine, resulting in lower silver grade.
In the later part of the year.
New contracts are right at the mine site in October with a focus on improving development rate the new area and it's still back.
We're also focused on developing on Oh the levels seven do you know for entered into any.
Just on titles I need not to provide higher grade or for the meal.
Work also continues to enlarging the ramp sites to floor and a half by four meters alone larger trucks to hold more ore from the mine to the plant.
With these changes because he is expected to reach the told hundred thumbs.
They level throughput and become a profitable operation.
Well she got good cash costs for silver equivalent baby bonds was $21.38 and they all existing calls was $30 an 89 cents per silver equivalent pay belongs.
It was higher in 2019 compared to 2008 unit costs were higher compared to 2018 I'd be it's like increasing silver equivalent payroll fun could not be upset.
The increase in cost of sales and sustaining cost during the year, which included higher capital expenditures have been mine related to additional mine development as a consequence of a brown subsidence event.
I've been mine earlier this year.
The company expects to have an updated and I 43, one to one technical report for the Goosey mine at the end of Q2 2000 and twin.
And is expected to include the results for additional infill drilling currently being completed at the mine to improve the quality and classification of the resources contained within the in <unk> and <unk> 43, one on one thing you call report.
Do you I myself had a solid year, we've consolidated throughput and metals production and is ramping up production in Mexico, We continue working to improve our for sure value, but in light of the Cobi.
19th and baby, we're facing lower metal prices and uncertainty in the market.
Management is on top of these extremely fluid situation and the board and management teams.
I've consistently reviewing and adapting to the current market.
Werent scaling back on non essential exploration programs going three to protect gosh, but continue with certain Brahma programs with a goal to improve quality.
Add.
An additional resources.
The company continues to have a solid financial position and the liquidity to support our operations and expansion programs, which always represents a prudent use of capital and provides for an excellent return on investment for the company and its shareholders.
With that.
I would like to review our cash flows for 2019 in more detail.
Turning to slide 13, due in 2019, our operating cash flows before movements in working capital were 66.4 million, we had negative working capital adjustments of 4.6 million, we paid 22.2 million in Texas, We invested 54.6 million in capital expenditures in Mexico.
Bruce.
We spent 60.8 million to repeat loans.
Credit facility and on interest payments and we also paid 2.8 million.
Repurchase shares of the company, we received proceeds from the issuance of senior credit facility of 99.8 million, leaving us with a cash balance of 43 million.
At December 31st 2019.
On slide 14.
The company's in good financial health, and we maintain a strong balance sheet with $43 million in cash.
Our talk a little bit or 99.8 million I'd be in Q3, 2019 with a net debt of 56.8 million.
Well 2020, the company focus remains on cash flow and allocation and the allocation of operating cash flows to sit pitching kept a grow to provide funding for the remaining capital expenditures planning this year.
Management continues to review metal prices and we think the ability to further adjust capital expenditures with respect to middle changes within the year.
They are more.
Previous press release dated January eight 2020 in anticipation of Oh free cash flow during the year. The company was contemplating returning capital to shareholders for which the company Board of Directors had approved I plan to return up to $30 million to shareholder due in 2020.
Which represented a portion of the EBITDA guidance issued for 2000 twin.
However, due to the highly uncertain economic situation. That's a result of cobot 90, and its impact on the company's operation and metal prices. The company has decided to postpone the substantial.
Issuer bid share repurchase program.
With that I will now turn the call that Mike.
Thanks, Seger that ends the presentation portion of the call as mentioned earlier, we now I'd like to open up the called two questions from participants operators. If you could please open up the line.
Certainly ladies and gentlemen, as a reminder, in order to ask a question you do need to press Star and then one on your telephone.
Please standby and what we compile the company roster.
Your first question is from Heiko Ihle with H.C. Wainwright Your line is open.
Hey, guys. Thanks for taking my questions and hope everybody, saying so.
Thanks Rocco.
Hey, so all in sustaining cost us a quote in 2019 were 8% fire at your offer 30 for 44% of Baltimore and for the person who see you guys attribute this to higher cash cost higher treatment or refining costs and higher sustaining capex.
We can can you break this down a little bit more indeed be 34% to 440% increase in all in sustaining costs I mean, I would assume the treatment and refining cost or just a very small part of that I mean I've got to be a fraction you just me probably a little bit more or on these numbers that are.
You know reasonably high.
Oh, Hi, HEICO is it said, thanks for the question and or the.
The all in sustaining costs does contain a much higher treatment cost and they're finding cost it's not a diminimus amount.
The increased from 2018 to 29 team was was a in the ballpark of ER.
The north of 50 isn't somewhere between 15, and a and $20 million most of that was in the zinc treatment costs, so very significant and that that affects your net smelter revenue, but again just goes all the way down the.
The line.
And affecting obviously EBITDA in your and your cash.
Can you break it out just a little bit more maybe quantify it a bit.
[noise] or I don't have that in front of me right now I go, but essentially there was sustaining capital across across all mines or an increase from where we were in 2018 or 15. The significant impact was was the beach Pcs.
And our sees.
Got it Okay, and then just a clarification you said you postponed to substantially sure.
The share buyback into corporate 19.
Do you plan on announcing windows postponement of those listed and to do you think you might even revised the amount.
Just so just to clarify how much has actually been returns in Q1 under this program for this whole corporate stuff started to help and please.
Okay I'm just.
You want to take it people.
Oh boy did a it analog companies.
Yeah, So just starting with the the second part of the question first nothing nothing was repaid.
Or repurchased in Q1, if you recall the press release back on January eight I believe we were planning to to launch this substantial issuer bid or in Q beginning in Q2.
2020.
Obviously the effects of cold at 19 hubs have put this on hold for the time being and we're not prepared at this time.
Come into when that could be reinstated or.
Launched again, that's gonna have to come.
And metal prices macroeconomics to get us to essentially where we work to basically the Endos you know into the fourth quarter of 2019, and the fundamentals at that time, which led us to to to make the decision to to launch the share buyback program. So.
So I think there's still a lot of work that needs to be done in terms of the economy getting back on a seat so.
I'm not prepared to two to say when that might be.
Got it.
Yes.
Yeah, what what we're doing a hike or its a.
Given that they realize the metal prices to be.
I was a nine and 2020.
Have a.
In continually dropping.
Okay, because the the sets a.
Forced us to.
With a team in place in Sierra and and where we view in different scenarios.
Of course will be doing first of all growth capital.
Okay.
C, we can differ or or or stopped some of the capital projects. All together for this period of time [noise].
Hey, we're also review in sustaining capital.
Operating costs.
Correct.
Administrated costs.
Okay.
And and also Oh they contract so that work is ongoing each one of the mine. That's you don't need shared cut out for them and they're supposed to be reporting on a.
On a weekly basis and now we are making the decisions in order to state or.
Yeah, so and reduce our.
ER costs. So we will update the market once we have all day it scenarios.
The fine internally, however, you have to understand that.
Mexico and pool or.
Annually evolving.
<unk> in view of the Sip and then so.
So far in Peru, We think we're gonna have for example, or.
Shutdown period of 28 days.
And we don't know yet if it will be extended or not if it's not extended been will go back to operations.
On April 12, the basic extended we'll we'll we'll have to reassess.
Got it very helpful. Thank you guys solicit.
Thank you.
Your next question is from Merck recommend with noble capital markets. Your line is something.
Thank you and good morning, Okay. Eager may have answered part of this question, but when you talk about tried to conserve.
You know some on some of the non essential exploration I think in the past you had talked about you know this bolivar expansion going beyond 5000 tonnes per day.
That was kind of an aspirationally goal and you'd kind of look at it you know when you get closer to reaching that target.
And its I was just wondering in terms of where you try to conserve.
How much do you have a specific target in terms, it's hard dollar amount in mind, and and and how much could be gain from a you know pushing out that expansion you know, including maybe the P.A. or whatever.
Trying to get Bolivar up above that 5000 tonnes per day rate.
Yes they.
They they it's an area. So we're evaluating will give us a number.
I I cannot give you that number right now because we're in the middle of the evaluation, but yes, we're considering first.
Defer any capital that is nonessential at this point in time, although he was approved earlier in the year, but for example, they galley quotas shop.
And we could have slowed down its implementation, but we could also.
Make sure that we build they they ramp which will alleviate they got to be caught your shop. So that's the type of three dogs that we're doing by now.
Also being or the communication between they fit.
And that she got cheap they did a 10 10 70 level will ultimately be that you already quickest shop. So those are the trade offs, we're doing now.
If we see that those two project alleviate enough the quickest shops and got them. Both on the yeah. We caught yourself. So those are the things that we're doing in Mexico will so for example.
We were building a tunnel communicate all day boldly, but I'm works.
With the plant.
We have the slowdown a that project and we.
We're very close to pumping or working but that project.
It is because we need to.
Some of them some capital.
On the flip side I mean, they are you seeing yet any benefit from the lower oil and and fuel costs or I mean, how much sensitivity do you have to that in terms of.
You know maybe offsetting some of these uncertainties and some of your other areas at least through throughout 2020.
Hi.
We have seen.
Okay that.
Well to the change in oil.
Crisis doesn't impact us diesel oil or there's a lot of our machinery underground is Ah theres electric and the amount would be less than than a million dollars. If you will on a tighter because it's it's really the bigger bigger ones are obviously metal prices and you do have.
A little bit of savings in terms of the weakening currencies, you know, but again that that doesn't even come close to two the impact on metal prices.
Right right Okay.
Well that's very helpful. Thank you are they.
They did the partial energy consumption.
For both Ah through and Mexico come from from the Great.
And ER and of course, we have contracts around those prices. So we expect them see any yeah.
Drops in those.
Unitary cost.
Our cost.
Sure.
[noise] change. Your next question is from Lee Cooperman with Omega family Office. Your line is open.
Let me just first to complement you on your performance on the very difficult circumstances, you're doing a very fine job.
Fortunately the price the commodities are under money you I'm just curious without any specificity do you expect to generate cash during the course of 2020 I'm not looking for any specific forecast that would be one I have three questions. My first question.
Hi, Lisa Thanks. Thanks for your question, it's too early to tell based on vis vis the the pandemic and how long it.
And we're not prepared to answer that at this time, okay, I'm, hoping we're hoping to get more clarity on or May call for our Q1 results Kutcher. Thank you second question I noticed that the a exhibit that used to include the NPV of the company was committed in this slide deck.
Any particular reason.
Other they didn't like the result.
Oh no normally if it was it was essentially that that information was based on.
For Mason from 2017 in terms of P. age so that that's really become outdated and now that we have 43, one once completed at your a coach and believer and will soon to have been in I 43, one or one for reserve resource on cousy coming up Oh.
Before the end of June 2020, well, we'll be in a position at that time to to assess updating p. A's and a and then reinstating a that's sort of schedule do you have they view as to whether that number would have been higher or lower.
If you publish it today.
And I'm like I'm not.
I'm not prepared to.
To answer that to today like.
Got you, Okay and lastly, what was the analysis that went through the that formulated decision to buy back stock.
I I think it at the right thing by canceling to buy back, but I'm. Just curious what was the analysis that was your conclusion that given everything you looked at the stock we're selling below the intrinsic value of the business. It was a good thing for the shareholders to reduce the cap.
Simple is that it was there something more subtle.
I'm not sure I understand there you why were you motivated to buy back stock when you announced the when you motivated because your towards the stock was mispriced.
Oh.
Yeah, you know two recent Ah Ah we are ones that are in our budget 2020, when we submitted to the board.
We had.
[music].
I.
I'm trying to it let's say can host fell so with a very good or cash cash position and and as such we wanted to make use of that that catch and given the price of the stock then we started which.
One of the best options to buy back there.
But that was a with a budget 2020 seems them a metal prices go up to them.
So those numbers have been change.
Yeah, so whatever understandable all that would suggest that what [laughter].
Oh It was I would suggest to you is only buy back stock.
Okay. It was a sharp pencil.
You are convinced the stock is very undervalued.
If he not convinced is around the that you're better off just returned the money through the former dividends.
[noise] typically lead I I appreciate that we concur and that was one of the reasons as well it's definitely intrinsic value.
It was not where.
The share price did not reflect that.
[laughter].
Thank you.
And ladies and gentlemen in order to US question, you do need to press star one on your telephone.
[noise], Okay, ladies and gentlemen, this does conclude.
Sorry, if we do have a question from Jim Young with West family investments Jim Your line is open.
Yeah, Hi, a couple of questions where your number one.
[laughter] buying up on that on a cost.
That was raised earlier.
Can you give us a sense as to you know on page eight of your corporate presentation that you had up on the on the web.
Sure the expectation for 2020 cost guidance all in sustaining cost.
Our dramatically below what you reported in the fourth quarter and in 2008 in 2019 and the question is assuming.
The current production levels hold your production guidance holds.
I would assume that also that the tea season, RC that you'd mentioned that were in had increased but that was already built into these expectations for your guidance. It's a how confident are you that you can still drive cost.
And the all in sustaining cost down to 77 cents geared coccia $1.75 at Boulevard in 15 18 at Juicy. Thank you.
Hi, Hi, Jim Thanks for your question and yes, the tea season, our sees were built in already into the cash costs and all in sustaining costs that were put in the guidance and ER and weve prior to the Kogut 19 pandemic, yet we were we were very.
Confident that we could hit those numbers as well, we had or our throughput expansion [laughter] are in place as well, which which will help reduce your fixed unit costs. So definitely we were confident that we could get there.
Okay. So Ed I'm, what I'm hearing is that.
As long as your production.
Guidance is able to be maintained [laughter] costs should decline quite dramatically in 2020.
They based on the guidance provided I guess, if if this code at 19 situation didn't happen that that is correct and if it's [laughter].
A great example of that Jim was.
In terms of production.
At your a culture last year, we had an illegal strike that took 24 days off line of production and your coaches still managed to come back and and ER and meet its.
Production targets.
So.
We'll see how long this last but.
If I again, I think we'll be in a better position in may when we update our Q1, when we issue or Q1 results and will provide better better guidance at that time.
Okay. The second question is regarding your gold production in the last two years and [laughter] your production [laughter] gold production it basically doubled.
Ounces.
And the question is.
He is a lot it is the outlook for gold production continuing at the at the prior rate or can you give us a senses to what you think that go how the what the gold production outlook is like over the next couple of years. Thank you.
The there.
Right, Yes, just just in terms of where we were in 22019 2020, we're expecting a 10% to 15% increase and in gold production, but again, it's it's it's not a significant in terms of ounces or go from a proxy.
We are 11002 to just over 12000 ounces.
That's what it was guided yeah.
Yep.
Hey, good fortune.
Hmm.
The increase production.
For a.
Well in in Mexico.
And ER.
As you can see in the last quarter 2000.
I really chip.
<unk> 40 to 50.
For <unk>.
Our target this year.
In order for.
2020.
2500.
There were very close to two to that.
And with that addition.
Okay.
The percentage so.
We're coming from both of our way now.
Hello, 50%.
And so that's what it make Andy.
That's on a go production.
So with that.
Yeah.
Hey.
Hi.
And I mean, even increase it further as we approach to second and third quarters and.
2020.
And of course drive.
Some additional gold production from Baltimore.
Okay and then my last question is although and I would agree with the.
The action to says she's not go forward with the share buyback program at this time given the uncertainties in the environment like but the question is from a.
The management's ability to buy stock can you share with us when you're blackout period, and how long that window is open for giving you as the senior management team an opportunity to buy stock yourself in the market.
You see the the blackout period will end.
After this after the conference after after we it's ended now once we released our year end results and we'll go back into.
To a blackout.
Just before we leave a month before releasing our Q.
Q1 results. So it's a it's a small window.
So basically you got about a two weeks or so because if they.
The first quarter results I mean, we're already at March 31st So they're gonna be released what by middle of the Middle May.
Right.
So that gives you basically about two weeks.
That's correct.
Okay.
Right.
All right, ladies and gentlemen, this does conclude the acumen. They period I now turn things back over to Mike Mcallister for any closing remarks.
Thank you operator that concludes today's call on behalf the management team I'd like to I'd like to thank you [laughter].
Because in 100 play do come back to me, Okay and this is the two and 3000 operator can you maybe other life.
Certainly sorry about that everybody is needed.
Concludes todays call on behalf of the management team I would like to thank you participants for joining us today, a replay of the webcast materials can be found on our website. If there any further questions or concerns you maybe talk to us at any time after today's call. Our contact information can be found in today's presentation as well as on the company's website operator, please conclude the call.
Ladies and gentlemen, this does conclude todays conference call. Thank you for participation you may now disconnect.
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