Q1 2020 Earnings Call
Thank you for your patience the call will begin in three minutes.
[music].
Thank you for standing by this is the conference operator.
Welcome to the Eldorado Gold Corp. first quarter 2020 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.
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I would now like to turn the conference over to Peter like Itch manager Investor Relations. Please go ahead, Mr. <unk> Mr. luggage.
Thank you operator, thank you ladies and gentlemen are taking the time to dial into a conference call today.
I mean bank or would this morning, our George Burns President and CEO Bill you Executive Vice President and CFO, Joe Dick Executive Vice President and COO.
Skayman special advisor to the see all adjacent show Executive Vice President and Chief strategy Officer.
Our release yesterday details, our 2021st quarter fragile operating results there shouldn't be read in conjunction with our first quarter financial statements and management's discussion and analysis, both of which are available on our website.
Also been filed on SEDAR and Edgar.
All dollar <unk> dollar figures discussed today, our U.S. dollar unless otherwise stated we will be speaking to the slides that accompany this webcast you can download a copy of the slides on our website.
Before we begin I'd like to remind you that any projections included in our discussion today are likely to involve risks, which are detailed in our 29 gene.
Then the cautionary note on slide one.
I will now turn the call over to George.
Thanks, Peter and good morning, everyone.
Here's the outline for today's call.
I'll give an overview of Q1, along with some comments.
Then I'll pass it along to fill for financials, Joe will fall by reviewing operational performance.
Then we'll open it up for questions.
Before getting into things I want to take a moment to recognize the ongoing and considerable efforts all of our global teams has had in managing our business during the cold in 19 endemic.
Our overarching priority each and every day is keeping our people saying.
I've witnessed a huge amount of collaboration across Eldorado as we've put in place new protocols to mitigate the restore people and prevent the spread of the virus.
Talk some more about these later, but for now I'd like to express my deep appreciation in gratitude to our teams well looking out for one another and maintaining business continuity during these unprecedented times.
In light of Cowen 19 operational performance in the first quarter was exceptional with production of approximately 116000 ounces.
This was consistent with Q4 production rates, but slightly below 2020 plan due to rainfall a kiss Saddam curtailed operations that luck as a result of government mandated restrictions.
We expect quarterly production to increase going forward. That's a solution. This process that gets at all and operations have already resumed at Walmart.
Costs were marginally higher than expected due to fewer ounces produced during the quarter and lower silver and base metal prices.
We're expecting our cost to be lower over the remainder of the year.
We delivered two key catalysts this quarter, including extension of mine life at Kisladag and receipt of expansion permit for underground production at triangle.
Also of note was improved production rates at Olympias, which resulted in the mines highest production and over a year.
At this time, we are maintaining guidance of 420 2500, 20 to 550000 ounces of gold at an all in sustaining cost of 850, the 950 per ounce sold.
We will continue to evaluate capital allocation operational performance and monitor the impacts of Cowen 19 on our business.
As I mentioned earlier, we effectively maintain business continuity in light of the global pandemic.
Our operations in Greece in Turkey continued throughout the quarter unlock is now back online.
As a spread of the virus increase we activated a global cobot crisis management team, which identifies risks to the business.
In addition to implementing safety protocols across our sites. The company was proactive in drawing 150 million U.S. dollars from its credit facility.
We do not see an immediate need for these funds are looking to ensure the company has sufficient cash on hand.
With approximately 400 million in total liquidity at quarter end, Eldorado as well capitalize and positioned to maintain that strategic goals as we begin paying down our term loan in June of this year.
Here on slide five or some of the global operating controls we have put in place across our sites.
Our main focus has been on training and compliance, including physical distancing and personal hygiene in order to keep our people say well.
We have worked closely with governments to ensure we have all necessary protocols in place.
We have also collaborated with industry associations and appears to share best practices.
We continue to can sit or ways in which we will be able to further protect our people and limit the spread of the virus.
Our sites are currently operating at 75% normal staffing levels as employees considered to be at high risk have been asked to stay at home.
We did not expect this to affect production in the near term, but are reviewing the potential longer term impact the certain discretionary activities such as waste stripping underground development and drilling art temporarily reduced.
We will continue to track the situation closely and are actively working with sites to transition back to normal staffing levels.
You are on slide six we highlight how we've been working with and supporting local communities during cold.
Today, you have donated approximately a half a million U.S. dollar towards local emergency response efforts.
In Greece, we have help procure critical medical equipment for hospitals and that was lucky and help Kentucky regions.
In Turkey.
We felt in providing health services supplies and information to local communities and then come back we have donated to the Val d'or Hospital Foundation and help the local food bank and other vulnerable.
In each jurisdiction, we have worked at local communities to ensure this funding has the greatest impact and supports our long term resilience and recovery.
That's it for me over to you felt.
Thank you George good morning, everyone.
Starting on slide seven I will provide an overview of Eldorado's financial results for the first quarter 2020.
Eldorado generated $204.7 million and total metal revenue in the quarter.
This includes 183.7 million in gold revenue.
And is an increase of 150% hundred 56%, but the comparative quarter in 2019.
This significant increase in revenue, resulting from higher gold sales volumes of 116219 ounces compared to 43074 ounces in the first quarter of 2019.
The increase in revenue also reflects the higher average realized gold price into first quarter of 2020.
1500 $80 per ounce.
Paired to 1200 $65 per ounce and the comparative quarter in 2019.
The company reported adjusted net earnings for the quarter of 12.5 million or eight cents earnings per share a significant improvement over the first quarter of 2019.
Adjusted net loss of 21.1 million or 13 cents loss per share.
Adjusted net earnings in Q1, 2020 removes items not reflective of the underlying operations of the company.
Including a 12.2 million dollar loss on foreign exchange related to translation of deferred tax balances.
And a 4.4 million dollar loss on a noncash revaluation of a derivative related to redemption options on the senior secured notes.
Prior to these adjustments the company reported a net loss to shareholders in the first quarter of 4.9 million or three cents loss per share.
This was a significant improvement over Q1, 2019 and reflects higher depreciation charges higher expense finance costs and increased tax expense in Q1 Twentytwenty.
EBITDA for the quarter was 84.7 million and adjusted EBITDA was 90 million.
Material improvement over EBITDA of 4.9 million and adjusted EBITDA of 12.5 million in first quarter of 2019.
Adjusted EBITDA remove certain noncash items as well as a 1.1 million dollar.
Charge of mine standby costs incurred at Lumwana during the government mandated suspension of operations in the last week of March.
Depreciation and amortization increased to 52.4 million into first quarter.
From 20.2 million in the comparative quarter in 2019, reflecting higher production and sales volumes and Twentytwenty.
<unk> expense finance costs were 16.2 million in first quarter of 2020 compared to 7.3 million or the comparative quarter. In 2019. This increase was primarily due to a change in accounting for interest starting in Q2 2019.
As capitalization of interest ceased following the commencement of commercial operations on the Mark in April 2019.
Income tax expense for Q1, Twentytwenty amounted to 21 point fourmillion for the quarter compared to 6 million in the comparative period of 2019. The significant increase was the result of the higher sales volumes in Q1 of 2020, leading to higher income tax on operations in Turkey, and higher provincial mining duty.
Yes for them off.
Deferred tax expense of 2.8 million at a quarter included 12.2 million of expense arising from the significant weakening of certain currencies in which income taxes paid.
This was partially offset by deferred tax recoveries related to timing differences primarily in property plant equipment.
Eldorado reported 53.3 million and net cash generated from operating activities in the first quarter. This was a significant increase from the first quarter 2019, which reflected a usage of cash for operations of $600000.
With our continued strong operational results. The first quarter of 2020 also represented our fourth consecutive quarter of positive free cash flow.
Since Lamar commence commercial production on April Onest of 29 team.
We finished the quarter with approximately 400 million in available liquidity.
Oh This 364 million was in cash cash equivalents in turn deposits and includes 150 million in proceeds from the March thirtyth draw on our credit facility.
Which was completed as a proactive measure in light of uncertainty regarding the Corbett 19 pandemic.
Approximately 36 million remains available under the $250 million revolving credit facility.
Approximately 64 million of this facility is allocated to secure certain reclamation obligations in connection with our operations.
I will now I'll turn it over to Joe for a recap of operations.
Thanks, Phil and good morning, everyone.
Here's a quick summary of our quarterly operating results.
As George mentioned, we produced 115000 950000 ounces of gold in the quarter at cash operating costs of $627 per ounce sold and all in sustaining costs of $952 per ounce sold.
This was consistent with Q4 2019.
Slightly below current plan.
Looking forward, we're maintaining our 2020 guidance at this time.
We have not observed any negative productivity impacts of resulted cobot 90, but we're continuing to monitor situation.
You have seen a reduction of our workforce of approximately 25%. Some workers who are considered to be high risk to cope with 19 I've been asked to stay at home as a precaution.
This has led to a reduction of certain discretionary activities at our sites and has affected underground development and waste stripping Adam I won't be as anxious to the respectively.
Here on slide nine we have some further color on the quarter at each of our operations.
I just would add as George mentioned.
We had increased rainfall during the quarter. This led to solution volume increase solution volumes have impacted our production.
The amount of gold that was leased insight into solution was in line with tons plays and we expect to recover this gold in the coming months.
At Moema.
We had a very good quarter, despite having temper temporarily moved the mine into care and maintenance on March 20, threerd to comply with restrictions as mandated by the cut back government.
You can pick government has since declared mining.
Operations and essential service and we put them back into operations on April 15th.
We lost about three weeks of production there, but we're confident that we can make up for this over the remainder of the year.
I'd also like to note that at a mock we have and you should aid testing other mechanized mining system called in rail ore extraction.
Shallow different structures.
Current resources potentially minor, but with this technology are estimated at 160000 tons at an average grade up.
9.16 grams per tonne.
We expect to have results on memory test during Q3.
Commercial success of mineral could support increased exploration opportunities to expand resource and gently dipping banking systems comment to the Lamar project area.
Yes, Im sure group was once again consistent with our expectations.
Auction was lower compared to the fourth quarter due to lower grade mine so far this year.
You did manage to offset the subsea by increasing the amount or tons, but through the mail.
And finally at Olympias I'm pleased to report that we had or high school production in 18 months.
This was a result from the work we have completed on underground development and improvements to the paste backfill system.
That said.
Fortunately I won't be are set up for order from a cost perspective.
Low base metal silver prices as well as higher treatment charges Liberty.
Increased cash operating costs and all in sustaining costs.
We will continue to drive operational improvements and look to lower cost as you are progressing.
Over to a quick date update on some of our projects on slide 10.
Kisladag continue continuing waste stripping, though at a reduced rate.
We have also selected their vendor for the HPG aren't expecting delivery of that unit late this year.
Got a mock we're continuing technical work to increase production from triangle and we now have the permit to increase underground production up to 2600 50 tons per day.
We intend to increase our mining rate to roughly 2200 tonnes per day, which is the current capacity of the Sigma mail.
As a reminder, that this expansion requires no incremental capital investment it is simply accelerates underground development in the current plan.
Eldorado will continue to study and optimize the triangle deposit.
We'll focus on the decline triangle deposit to the Sigma Bell and we'll also look at de Bottlenecking, the mail and a long term training solution to enable us to go beyond 2200.
Tons per day.
At June group construction of the flotation columns is underway as you can see from the picture.
Once these are completed and commission, which is expected in the second half of the year, we will able to further increase the quality, Bart concentrate which reduced our treatment charges.
And finally over to Skouries.
Early in the quarter, we mobilized crews to commence site protection works in place concrete at the no building to protect the rebar this installed several years ago and.
We had planned to install the meal building.
That work has now been postponed due to cope with 19.
With that I'll turn it back over to George for closing remarks.
Thanks, Joe.
Perhaps a few words on Greece before wrapping up.
The covert 19 pandemic has diverted both our own and the Greek governments attention, leaving limited time to discuss advancement of our investment.
However, we look forward to continuing negotiations and remain committed to developing our assets increase safely and responsibly for the benefit of our investors and the Greek people.
Eldorado's assets and how could do you have the potential to be economic engines for Greece, creating high quality jobs, increasing tax royalties and export revenues for the country and providing an additional revenue stream to help mitigate the economic impacts of cobot 19.
The safety of our people their families in our local communities as always top of mind.
As we look forward to the remainder of the year, we will continue to adapt our new normal while focusing on delivering our objectives.
Thank you everyone I will now I'll turn it over to the operator for questions.
Thank you.
We'll now begin the question and answer session.
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Our first question comes from Cosmos Chiu with RBC. Please go ahead.
Hi, Thanks, George though and Joe.
My first question as you know I guess overall, a good to see that you've maintained your production guidance for your 2020.
But George as you also mentioned.
Currently running at about 75% of normal levels, how much of that have you factored into maintaining.
Guidance production guidance what 2020.
And then on top of that George as you also mentioned you know some discretionary items you might not be spending all right. Now are you talked about potentially in a long term impact here.
In terms of long term impact does that you know 2020 are we talking about 2021.
Thanks for the question Cosmo so on on our five year outlook I would say the we've had limited impact and we're still committed to that five year guidance.
Obviously, if the reduction in stripping and development.
Got it continue we'll have to reassess that day by day.
As we stated we are currently focused on how to get.
Our manpower levels back to normal and believe we will be successful.
With that endeavor in terms of what it means I mean, I'd say the first one would be Kisladag. If you look at.
We're not moving all the waste right now that we had planned.
The impact to date won't impact the five year guidance in one of the reasons as.
Weve been able to re optimize.
The next two phases, so recurrently mining phase three to feed the crusher, there's a phase four and then a phase five pushback that are it part of the 15 year mine plan, what we've done as we've shrunk phase for a bit which allows us to get down to or quicker.
And then at.
Better optimizes the use of the truck fleet and stripping over the life of mine that gives us a bit of a question to mitigate some of the issues were currently dealing with with black and truck drivers.
So that gives us some comfort.
On the development side for underground mines, obviously, you have to do the development to get the faces opened up into the future.
Again here I'm confident.
Our teams will find ways to get our work force back to normal and our development wearable needed to be so what I mean at this point on I'm pretty comfortable the way we've managed.
But to date and believe we'll work through issues over the coming weeks and months to get back to normal.
Well sure that maybe more specifically on the Mac.
You know how any challenges in terms of getting it back up and running you know since we're stuck at least starting on April 15th and then it on top of that I believe before Culver 19 before to shut down you're running at about 1600 tonnes per day are you back to about those levels and you know.
So as you talked about you know you aiming for getting to about 2200 tonnes per day in Q2 can you maybe elaborate on how you get to get there and can you do that even as you run at about 75% of normal levels.
Go ahead Joe.
So first off at the mine development would very well in Q1 is finished Q1.
Ed on development schedule, even though.
We lost the last week of the quarter.
And.
As for the ramp up we have.
Ramped up fairly quickly it took us roughly from the key.
Until about the 20 it to get the mills, turning and since we have been able to beat the males.
Close to 2000 tonnes a day so.
That that early development and.
Kind of being prepared and knowing that this.
[noise] potential permit was coming we were we were working hard to ramp development up in advance and be prepared so so things have gone well in.
Lamont restart.
And in the.
Continued.
Growth at them up.
Well.
Hi, guys implement those.
Those comments Kosmos on on the mill, we had a planned maintenance.
For the mill and basically since it was already down took advantage of that.
That opportunity and I think it's another example, where our teams quickly rallied around the restart got the plan maintenance completed and the mill backup on running so.
Hats off to our team there.
Mhm.
And and you know as you mentioned that he Mdna you know knocked grades were lower but as expected as your target at some of the lower grade stopes.
You know the head grade was 6.05 gram per tonne.
Could you give us a bit more insight into what we should be looking for for the rest of the year.
Well.
Since this is Joe as part of the.
Issue with lower grades was higher.
Let me tons, which were typically lower grades so.
That was somewhat expected and then.
Toward the toward the close of the quarter.
We didnt get knocked out the higher grade stopes that again.
As the year progresses.
Great will recover but we're likely to stay update below original plan due to that.
Increased development.
Great.
And then maybe one last question Phil.
As you talked about though taxes based on compared to my motto, where they were quite high in Q1.
$21 million on earnings that were 15.9 million I think you touched on it in terms of higher you know revenue from Turkey or whatnot.
But it was still work out to over 100% of earnings as taxes.
Yeah, I think a bit of it might have been adjusted out for your adjusted earnings, but I don't know exactly how much I'm just trying to get a better handle on how I should look at the rest of 2020.
Thanks, Cosmos SOFORT for taxes Cosmo the only the only.
Factors that impact that affect the current income tax expenses. They is the corporate income tax and Turkey and the.
And the Quebec mining duties in Quebec.
And Turkey, right now with Kisladag ramping up.
We're expecting a higher production this year.
Especially in comparison to last here so the income tax rate in Turkey.
Just trying to.
I think it's a I'm just trying to find the effective rate here, but.
I think it's going to be proportional really with the increase in production in both the kisladag in essence sugar.
Not perspective.
Okay, Yeah because.
So I think based on my numbers your earnings today missed consensus in part due to taxes. So I just wanted to get a better handle on taxes.
To forecast you know Q2 Q3 in Q.
<unk>.
Yeah. So for two for Turkey, I mean, the the total income tax expense was 18.7 million.
17.7 to that was from Turkey.
Andy that might even be this was a million and that's going on if you work out the effective tax rate I think it's around 33%.
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Perfect. Thank you those other questions I have a have a good weekend and stay safe.
Okay. Thanks, Cosmo thank you.
Once again, if you have a question. Please press Star then one.
Our next question comes from Kerry Smith with Haywood Securities. Please go ahead.
Thanks, operator.
Joe just a follow up on triangle, how long do you think it will take you to get the development in place to be able to get to 2200 tonnes. A day do you think you can get there by year end.
Yeah, I think will be close at year end.
Wouldnt guaranteed 2200, but I think we'll be very close.
Okay and that wouldn't assume any benefit from the mineral thing right that would just be conventional.
That's just conventional the admin ratio.
We got it installed in Q1 and.
I will look to do testing in Q2, and then kind of evaluate economics in Q3 I think in total there's.
Roughly.
Hi.
20000 times, if that in the in the mineral Pes plan.
Okay.
And one maybe I'm not sure. This question would be best for but there is the updated results that you plan to put on Perama, the updated capital and operating costs when might we see that it sounds like it's going to be finished this year is that something I will see and maybe the Q3 results or what would the timing b.
So it's it's probably something we'll talk about in Q4 should.
Should complete the work in Q3 and and be able to talk about it in Q4.
Okay, so be it wouldn't be necessarily in the Q4 call what should be this time next year kind of wealth next February and be sometime later. This year then is that right church.
Yeah, I would say late this year.
Okay, Okay, and the standby costs that you incur that Lomak Phil we're.
I think slightly over a million dollars for the last whatever it was six or seven days of.
Rich.
Was that where they're just some large numbers in there I'm just wondering what the cost might have been through to the started up in on the 15th of April.
I don't think I want to sort of normalize that 1.1 million, but I'm just wondering what the number might have been.
Yeah that 1.1 million carry was really.
From March 20 fours to March 30 Onest.
So he can probably extrapolate that that that was for one week. So for the next two weeks until April 15th I would it's probably.
Saved proportionally as I'd say, probably be 2.2 million.
Okay, Okay to leasing.
Right, Okay, and then and then maybe the last question if I could.
You talked about not having enough manpower to do some of the pad maintenance at Kisladag.
Just because you've got about 25% of your workforce, that's not able to work.
Could you bring in contractors to do that work or how are you thinking about sort of trying to address that situation. So it doesn't impact your production in the longer term.
Yeah, I mean, that's one alternative for sure.
The best scenario is is putting additional measures in place.
Protect the health of the employees that haven't been coming to work and.
That's priority, one and I guess.
That's not completely successful we could look to bring in some temporary workers.
Coal would.
The balls to a better place.
Okay.
And George when do you have to get back to normal man power levels at Kisladag and get back to stripping out the rate you had budgeted so that doesn't impact the the mine plan, even though you did try to reject that phase four plan.
Hey, it's tough to give you the exact but I would say during this quarter.
We will be assessing that I'm I'm hopeful we can get back to normal levels.
Q2, or close to normal levels, and and I think we can absorb all that due to the discussions I had on a while ago on phase four stripping.
But if it persists beyond that we'll have to run.
Schedules and forecast to see the impact.
And then update the market on our output, but I'm sitting today based on what we know we're feeling pretty optimistic we're well get through this without an impact.
Yeah Okay.
Okay, great. Thanks very much.
Our next question comes from Tanya Jakusconek with Scotia Bank. Please go ahead.
Hi, Good morning, everybody I'm, sorry asked a quite a number of my questions I just wanted to make sure I understood on that Kisladag that George you mentioned that we're hoping to get back to that hundred percent capacity out close there in Q2, so that we don't impact on that.
Guidance, what Twentytwenty is that correct did I understand it correctly.
No for 2020, we're we're okay. The stripping won't impact 2020, we are moving all the ore and waste in phase three and removing a great deal ways in phase four does not everything we planned currently.
So that the issue of getting back to normal.
Attendance and manpower levels is about stripping waste for the five year plan not for 2020 and.
Again, there's work to be done sort out how we can put additional protection in place for those employees, but believe we believe we can get there.
Okay. So that so I understand that 2020, even if we operate with 75%.
On employees at Kisladag, youre comfortable with that Twentytwenty guidance.
That 70% going beyond the five year plan.
Yes, correct, so 2021 and beyond.
Could get impacted if stripping.
Does not resumed the normal levels.
Okay. So when you say 2021 and beyond your you're talking it could impact when a 21, although as you as I understood. It out beyond the five yard, but its 2021 hour.
Yeah 2021, the 2025 say is potentially at risk. If you look at the Kisladag plan, we've got five plus years five six years of stripping at which point.
Our truck requirements drop off substantially.
So what we've done with this re sequencing.
We've made phase for a bit smaller we get the or quicker that's mitigating to some degree the stripping issues. We're currently experiencing.
And so yes without getting that waste moving there could be some impacts in 2021 and beyond.
That's why we're working hard to come up with waste to.
So to get all the trucks moving in.
Okay, and then just maybe on you know looking at.
The you know what happened with Covidien, although the you know the Michelle the social distancing some of the other measures that you have to implement the new health and safety can you do you haven't <unk> under a understanding or some sort of.
Range of what that has had an impact on the cost structure and have you been able to offset it and other ways I'm just trying to understand whether that's going to have impact longer term on the cost structure I, we added new level.
Oh, maybe answer to the high level and joking that any detail.
So.
At a high level, we're not seeing any cost impact, we're obviously using a lot more pp than normal, but that's my new shouldn't scheme of things.
And there's lots of habit changing that has to happen a amongst our workforce to maintain that physical distancing and to have appropriate hygiene, so well equipped equipment operators between shift and the like Theyre, they're doing a lot more cleaning and then we would have.
Pre cobot era, but the impact that is having on cost would mean, we don't see it in and can't measure really any any impact to date.
And I think thats, probably going to be the case moving forward. So as Joe said, we're not seeing any measurable change in productivity and to me. That's the key issue. If if these control control start lowering productivity that obviously would then have an impact on cost and cost per ounce, but today, we're not see.
Being any material change there and it's it's really about the and the quality of our people adapting to these new risks and everybody's motivated to keep themself and there are co worker safe and at the tail same time.
Maintaining the health of our business because we all rely on it so.
And again I think the collaboration has been fantastic and to date, we havent seen any material impact on our costs that we can speak to Joe I don't know if you had any color on that.
I think a couple of points George one of them being.
Yeah.
There's been some positive offsets we've done a lot of tasks observation, which means getting out.
Looking at the work with genes.
And then that alone is making some on bar.
We're more efficient even though you have to distancing I think the engagement and interaction with look under the leadership and teams in that field has.
You know kind of helped us a bit Tonight, and I think we can look too.
You know some other things, there's lower fuel prices and some other offsets said before for any for increases were saying, we're likely saying sub.
Offsets as well so I mean, I think we'll we'll continue to look at you know those impacts over time and be able to better quantify them, but qualitatively.
So far.
Switching to maintain productivity levels.
Recall that.
And you touched a little bit you go on the opportunity you talked a little bit about that are engagement <unk> session engagement are you seeing other opportunities and as you look at your operations at the end of the whole change where play has brought to your attention.
I think it's early days than that but yes. We are we're working on kind of you know the tracking that we might do for.
Potential management of any outbreak on site and so where is all also helpful. Land you know kind of managing work in People's proximity to work so.
So a little different environment and we're early days.
And.
Figuring out how to take advantage of that has.
But I think theres opportunity.
Okay, let's look to here I think that's a pretty good them.
It's a pretty good example, I mean, we're we've got tagging and tracking of equipment that most of our underground mines and obviously in our pit at Kisladag, but haven't put the energy into surface facilities and with Covidien. We believe this is a huge mitigation factor and.
As we deploy that into Q2, there's going to be some benefits come out of.
Further investing in and that sort of technology and the other thing I'd say just at a high level I.
I mean, it's changing the way we approach everything even even on the management side, we're not traveling to where sites, but we are leveraging the technologies that we put in place the last couple of years and I've been.
Well I'm of the belief right in our communications out actually better I mean, our days or longer there's a lot of stress around what's happened here globally, but I think we're getting better at communication and teamwork and so it's an odd.
Positive consequence, but we're going to learn a lot from this whole event and we'll keep the good things with us and improve our business as a result.
Oh, that's good yeah. Thank you so much.
Thank you.
This concludes the question and answer session I would like to turn the conference back over to Mr., George Burns for any closing remarks.
Thank you again I'd like to thank all of our employees and partners for their ongoing support during these unprecedented times look forward to catching up with everybody Oh in the next quarter stay safe and stay healthy everyone.
Thank you.
This concludes today's conference call.
You may disconnect. Your lines. Thank you for participating and have a pleasant day.
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Okay.
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Yeah.
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