Q1 2020 Earnings Call
[music].
Thank you for standing by especially the conference operator, welcome to Great Caster, Minings Q1 earnings calling about cash.
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.
During the question kill you May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal, an operator by pressing star and zero.
I would now let's turn the conference over to making Brown Vice President Investor Relations. Please go ahead.
Thank you operator, and good morning, everyone I'm make brown. Thank you for taking the time to participate in our call today.
Before we begin I'd like to mentioned that some of the commentary on today's call contains forward looking statements you should be cautions that actual results of future events may differ from those noted in today's presentation. The commentary also referred to various non-GAAP measures definitions and reconciliations that are included in the company's mdna for the period ended March 31st 2020.
All dollar amounts to this presentation and any associated financials, and mdna or in U.S. dollars unless noted.
Reference during the call AOCI refers to all in sustaining cost.
I'd like to remind everyone that this conference call is being recorded in would be available for replay later today replay information in the presentation slides accompanying this call and what will be available on our website at www dot break out there dot com.
So on the call. This morning, we have Rob Henderson, our newly appointed President and CEO, Neil Hepworth, Our Chief operating Officer, Jim's address our Chief Financial Officer.
I'll now turn the call over to crop Henderson.
<unk>.
Thanks, Matt and thank everyone for dialing in today.
I'm excited to take us on for a number of reasons.
Great and then it's highly leveraged the gold price and I see a significant value price play in a rising gold price environment.
Secondly.
That's most importantly, great pent up has a great team with producing assets.
Good jurisdictions.
Our employees have done very well in this very disruptive time old cope with my team I.
I would like to thank them and all our frontline woodcuts for their efforts.
My priority is to stabilize operations generate strong cash flow.
My background is an operation so I'm looking forward to those costs.
We also need to advance advances brownfields exploration.
And we need to maintain liquidity.
The market doesn't like surprises.
That's the one of the main reasons in my mind that the company trades at a significant discounted the peer group.
We've had sit back and ended the day.
We have not had consistent operating performance and the resulting lack of predictability and results.
Now we have a refresh board with tremendous mining experience and their strong relationships within the industry brings us new access to capital markets and project.
And this brings me to the third reason I see good upside in our company.
There's a great Panther has had a low profile on base Street, which is an important financial centre for mining we've had tremendous following in the U.S. and Europe and trade almost eight times the volume on the NYSE American we do on the tier six.
Many of you on the call today have been longtime support is a great pent up and I look forward to building a similar established following on in Canada as those should give us a stronger rewrite opportunity as we stabilize and improved operations.
One of a high level objectives is to build stronger capital market presence as this will create a strong platform for further growth.
The New board will also strengthen and support our ability to do.
Once we get a currency back to it shouldn't be relative to our peers.
We will look to grow the company through M&A and achieving critical mass is important we want to grow the business.
[noise], because I haven't yet had the chance to visit the mines and meet our teams in person.
I'm going to give a high level overview of the courts that and then we'll turn over to Neal the detailed discussions on the operations and of course, Jim will do the financial review.
Before we get started with a review of the quota I'd like to comment on the health and safety about people.
The tiny decode the 19.
We have put in place a number of proactive measures, including travel restrictions and many of our employees are working remotely, including every on and head office.
At mine sites, we have supervision monitoring and response plans in place as well as health screening and continuous assessment.
Let me think external visitors.
In spite of thus, we unfortunately reported to the affected employees at our two kind of mine this week.
Cases or local employees living in the nearby communities.
'cause it up bronchitis and set an all deal.
They have both been placed in corn teams and I'll be monitor but monitored by the local health authority.
We continue to screen all employees on arrival at mine site and workers are encouraged to stay at home if they do not feel well.
The health and wellbeing about people people in communities as a core values.
And we'll continue to be our top priority through the anik.
On the topic of code at 19.
All of our minds Worden full production during the first quarter.
However, subsequent to the ended the quarter in early April.
The next HM government to put in place the directive to temporarily suspend or Mana central business activities, which included mining.
The directed was it initially set to expire on April Thirtyth, but has been extended until May ended may.
As a result to P M and no one knows how to mine complex are not currently operating.
To copper mine in Brazil, So far continues to operate for the full and proper protocols in place.
We had a strong cash position that the into Q1.
And lost production in April and May from Mexico.
Not expected to exceed more than 5% of our annual plan production for the company as a whole.
2020, it was off to a good starting in Q1, and we delivered significant growth in revenue.
Mine operating earnings and operating cash flow.
Production totaled 34725 gold equivalent ounces, a 134% increase over Q1 last year following that Tucano acquisition.
Our revenue of 48.1 million delivered cash flow from operations of 11.8 million in the quarter and we ended the quarter with $39 million cash on the balance sheet.
Driving that growth in production was the tucana Gold mine, which is now a flagship assets and as a big focus.
This year as we carry out a 6.6 million dollar 55000 meter exploration program.
Just on near mine resources.
[noise] Tucano produced 26176 ounces of gold in the quota.
<unk> percent increase over the first 2019.
This last quarter, we also announced our inaugural mineral reserve and mineral resource estimate, which was significantly lower than the previous estimates.
This is the result of updating the geological model, which resulted in higher grades and lower tonnage.
But most importantly, this model now provides us with greater confidence in our mine planning.
We're keenly focused on drilling no existing convert mineral resources to reserves.
And the property surrounding the mine has great potential and it's very underexplored. So we'll be testing some regional target this year too.
We are maintaining a full year production guidance at the Con 120 to 130000 ounces of gold.
At an all in sustaining costs cream.
11, 50, and 12 $50.
Oh.
And our Mexican soap operations in the quarter [noise].
<unk> 769429, silver equivalent ounces in the first quarter.
And also launched a 25000 meter exploration program at GMC, which is progressing well.
Jim see is expected to be juice 1.2 to 1.4 million silver equivalent ounces. This year at an all in sustaining costs between 13 and $14 per ounces silver.
As we will discuss later on a go took his guidance will be released at a future date, but no later than the into Q2.
I previously noted the suspension the mining operations in Mexico by the federal authorities as a protective measure due to cope with 19 to date, we haven't done any cases of cobot 19 that our Mexican operations at which we still have thought undertaking this is really care and maintenance and security has allowed for.
I'm very excited to lead grade and then in the next phase of growth, we are a precious metal producer with assets in Mexico, Brazil, and Peru, we have a strong diverse operating platform from which to grow with exploration upside and financial strength.
Along with the experienced team to execute on these important initiatives.
I'll now turn the call other Neale hickerson.
It should cover the operation.
Okay. Thanks, Rob Okay started went to call. After closing acquisition last year, we immediately focused on finishing construction and commissioning of the sulfide processing circuit, which allows us to <unk> first as a higher grade sulfide.
Actually we did last year.
First quarter production totaled 26176 ounces of gold.
As expected this was lower than Q4 as they focused on pre stripping activities in old producing pits.
Central no a b three I'm starting on the push back can overcome knows this resulted in fewer tons of ore mines in the quarter, but as planned the piece chipsets is up by state that make up.
Although the cost of the.
Customer quarter were higher than full year guidance for the same reason waste tonnage was 36% higher than the previous quarter of summit on some of the waste movement schedule for upcoming quarters.
Upsides, However is that older should lead to improved production lower <unk> and the remaining.
Right reminder, PNG trends, you and then to 2021.
During the quarter as as Rob mentioned, we met we launched a 6.6 million dollar 55000 meter drilling program up to calling up at this divided near mine and regional categories.
This is a threefold increase and the amount of drilling done last year as we work to capitalize on to calling as exploration potential.
<unk> million this debt because within five kilometers applaud that could lead to the developments or new <unk> mineralized zones, while 1.6 million. This focus on regional targets within that 20.
Kilometer dismissed or the mill well within the economics trucking distance.
In addition, with the current gold price well above the prices use in the historic pit shell designs, we're analyzing opportunities to expand the existing pets.
During Q1, we completed the first 2408 leases or this drilling with two rigs on site.
The additional rigs have been added since since quarter end for a total of four rigs.
Okay, well tell you watching the merits of conducting a feasibility study for underground the study let's start around the end of the we will consider them exploration declines well access to the all plus goodwill coverage for lower down in the ore body.
Right, but also essentially said, there's a production run.
It seems like the feasibility study will evaluate economics of jewel production declines different body matches in contractor vessels operating models.
But on the next slide will well talk a little bit about the expiration.
The main focus for the reserve replacement drilling is tough they'd be target resources are below the current searching $50 bounce reserve pit shell, which is the blue line.
And the above a new 1500 dollar per Alps pit shell, which is the orange slot.
Do you this new shell is far larger than the Lpa 1500 dollar resource pit shell, that's considered average monthly costs.
R&D cost for took on a 3.8 released for U.S. dollar exchange rate.
The New show includes an exchange rate of 4.53 <unk> for U.S. dollar and uses mining cost specific to tap a beach to take you know kelcy extended exercise oxidized done within three with predictable material on the proximity your process plans and waste dumps.
I couldn't you were sole Sheldon red demonstrates guidance that maybe made if the equivalent of a 10% reduction in operating costs are cheap.
Okay, you can see there that the.
Reserve replacement drill older Sheldon purple traces.
In fill drilling is focused on resources with less.
Existing coverage so that these inferred resources can be upgraded to cross stitch indicated resources and then convert it to reserves within this pit shell.
Version of in frozen indicated resources of the Orange and good shells when increases as well I'd between 180200 30000 ounces.
The first phase of drilling is expected to be completed by the end of June.
Next slide to the next slide looks at the at the regional.
Exploration potential.
I think that some great Panthers regional tenements couple of the most prospective under explored greenstone terrain in Brazil.
The images that you see on slide.
Well basically conductivity superimposed on like metrics.
The large overall shred blue zones reflect genetic intrusions are the main drivers of mineralization.
Yeah, the Red Squiggles highly conducted zones, such as blended formations chemicals settlements for deep whether it is squeeze between the intrusions.
The glenridge intrusions provide heat that drives and generates the gold rich hydrothermal systems of precipitate gold in structural and chemical reaction post rocks.
Okay. The sudden column to try and took on a mine trend is that no self trends can be bought.
No the numerous environments so much.
Similar to the so called the trend that need to be prioritized evaluated.
We have a new VP exploration that he has extensive experience in greenstone, an extensive knowledge of two corner tend to launch in particular from his previous functions.
Nick Nick will identify and give priority to high potential car those targets based on logistics and <unk> prospectivity for the future fast track an exploration program. This is expected to start to Q4. So we made we may end up jumping into it.
Interest or regional exploration, well with the vengeance rather than taking it slowly.
Right next slide.
Moving to a Mexican operations, it's important to note that our problem is probably metal printers is now gold. However, we continue to use and report cost metrics, but payable silver helps to manage and evaluating all evaluate operating performance Mexican silver mines.
In Q1, we produced 376.
Thousand silver equivalent ounces.
Oh, 4.2 cells and Oh, sorry about 4200.
Gold equivalent ounces.
It's a p. it.
Reflected lower throughput and also lower average gold.
Great Restructures report, partially offset by higher average silver grade.
And I Didnt gold recoveries.
We completed 1561 breaches of exploration drilling in the quarter Topia.
To better define existing mineral resources and extend the mineral resources into new areas that comes before rigs on sites It took area.
As noted in our marks and logs press release, we temporarily ceased the posting tidelands on.
Our next phase two tailing storage facility at Topia based on a recommendation by a cousin buyout consultants.
Our team is reviewing various alternatives, including mitigating measures to continue using its phase two chipsets and that's bouncing up 17 for phase three.
Yes, that's.
Currently we are we estimate is a potential mill stoppage for Threeq six months with ongoing monitoring and stuff probably annabelle. However, subs subsequent to quarter end operations were temporarily suspended due to cope with my team, which is now expected to be the place until end of my.
At the gone to walk through mine complex nearly all of the process.
All was being sourced from the some exhaust your might well be continent exploration activities the quarter walks.
<unk>, so what else.
It's the same in cost a fortune trade you want the equivalent so that helps.
The exploration program continues to advance or G.M.C. with four on the ground zero record operation and the objectives of outlining <unk> brought supply a great mineralization.
Underground insistence expiration has also been increase the size Ignacio.
In in March of this year, we announce an updated for D.C. and I for one or one resource for both want to want to understand ignacio's.
Exploration efforts will continue to share with with the goal of boosting production from G.M.C. and the second half of 2020.
Okay I'll now two in the cold over the great comes to C.F.O.s gyms address to discuss offsets quarter financial results.
Exhale welcome everyone.
Recorded 188% increase in her revenue for the first quarter of 2020 relative to C. one of 2019.
Which which which is a primary driver behind or or higher operating earnings.
Operating cash flow.
The higher revenue primarily reflects a full quarter of to Catoe operations, which required last year and also reflects a significant improvement in the average.
Price to 15 77.
Versus 12 94 for Q1 of 2019.
Today Gold is is well above 1700 per house and has been trading in this range for a good part of the corridor, which bodes well for two two results.
Recorded mine operating earnings before noncash items 14.2 million and cash flow from operations of 11.8 million.
Despite the strong increases in mind operating earnings in operating cash flow, we reported net loss of 13 cents per share.
Yeah for accounting for noncash items.
Adjusting for these items, we reported adjusted EBITDA 6.4 million.
Noncash charges <unk> relate.
Primarily to the significant historic weakening of the Brazilian reale against the U.S. dollar towards the end of the corridor.
As a code at 19, Pat pandemic accelerated.
My 26 million of these on cash items relate to.
Changes in the value of outstanding Brazilian real forward contracts that we put in place and the fourth quarter and the first quarter to have a portion of a production costs in Brazil to better.
To have better certainty on our cash flows.
These forward contracts run out to February 2021.
And as we are not fully hedged we will continue to realize the net benefit on our reality denominated costs.
If there is substantial sustained a weakness and the reality if the real strengthens we will recover some of them are to market losses, we recorded on the remaining contracts.
Another 11 million of 12, primarily noncash charges relates to the translation of U.S. dollar denominated boring liabilities on the books of our Florence.
And primarily the Brazilian subsidiary.
G.N.A. expenses were higher than in 29, and and Q1 2019 do a full quarter impact.
Of the additional that'd be edition of G.N.A. cost from the opposition to count.
And additional insurance charges.
We expect to see a reduction in G.N.A. and the following quarters is we realize the costs energies from closing the former parent company head office and have to <unk>.
Second quarter 2020, most of the con contractual ongoing employment and other administrative costs of the former head office.
The wound down.
For the first quarter of 2020 consolidated cash costs was.
10, 54 per gold outsold and all understanding costs, excluding corporate G.N.A. was 17 37 per goal down sold.
I have seen cash costs were impacted by a number of factors, including the seasonally lower production it to count.
Lower sales as compared to production.
And higher waste stripping is Neil mentioned, which is expected to benefit production through the remainder of the year.
As production increases and we see lower levels of waste movement, we expect her A.S.A.I.S.C. to trend towards our guidance of 11, 50, 12 50 per ounce.
Kauto and we continue to maintain or cash costly I see guidelines for the G.M.C.
And later this quarter, we expect provide guidance for two p. a after we had better visibility on a restart fault following the covert 19 restrictions in Mexico.
And the status of monitoring our phase two tailings down in progress on on permitting a phase three.
We continue to strengthen our balance sheet and the first quarter closing at 11.25 million gold already pre payment facility with plus Samsung and we also increase or credit facilities in Brazil by I met 2.5 million.
We are continuing to pursue additional capital to fund or exploration and growth programs and to improve our balance sheet.
In terms or a capital allocation priorities are primary focus remains optimization, an expiration it to counsel and secondly exploration at a mines in Mexico.
I'll turn the call back to Rob.
Thank you Jim before we put up a questions I just wanted to during two on our last slide in this presentation and that's the evaluation gap.
This is one of the most compelling opportunities I see here and one of the reasons I was excited take does on.
Talked earlier about the rewrite opportunity.
Some effect the great pen to trade that a significant disk onto its peer group.
Again, a priority is to stabilize operations get to a place where cash flows didion strong Meanwhile, improving on visibility in the Canadian capital markets.
We continue to Boston and grow up profile in the U.S. market I.
I see great upside in the company's valuation.
Thank you that's all we have full formal remarks, and I'll turn it back to you for the <unk>.
[noise] thinking we will now be can the question and answer session to join the question Q. you May pass stars and one on your telephone keypad, you like your internet acknowledging or a class if you're using a speaker phone. Please pick up your handset before crashing any keys to withdraw your question. Please <unk>.
[noise] once again, if you're watching the west cast you're welcome to submit a question writing by clicking the cat and the <unk> they'll pass <unk> College trying to <unk>.
Yeah.
The first question <unk> as Cantor Fitzgerald.
Go ahead.
Thanks, operator that morning.
So at Yeah, just a a couple of questions. Obviously, we we've chatted recently when you and as as the new team has come on board. So of course, welcome and see you share your optimism for the future for Gray Panther well one of the areas that I'm, particularly drawn to with <unk> is the exploration then you you've touched on that a fair bit in.
In the comments, but I was wondering it looks like you've already spent about 6 million from the financials. This quarter on exploration I'm, assuming that the budget is going to increase in and I guess, you you pointed out that.
How about 5 million is really near mind stuff I know a little bit more regional when what might we see some results from that and would we expect to see that budget increase in continued exploration for the remainder of the year.
Yeah, I met and yeah, thanks to the comments.
We yeah. We're we've we've got the drills tuning in Brazil, we well into the program certainly not up to $6 million yet, but it is the focus too good.
Input dwelling done by mid year. So we're looking for an acute three update to the model in time for the budgets Roses at the end of the yeah.
You know exploration you know, we'll be focusing on that once the.
The season, you drive us, which again as we look into three to four so that's Jim can give a bit more cut her on the on the <unk>.
Sure <unk> <unk> Jim your your.
Just want to remind you do the expiration and development line item on our P. you know reflects primarily the core catch it costs, an expiration activities in Mexico that we don't capitalize.
As our exploration in <unk> is capitalized, which fish it will show up in cab packs.
So there's the 6 million you're seeing is is not.
<unk> is the expiration programs that are not related to to to counsel and you know we <unk>, we remain on track and into account or add to count on in terms of the 6.6 million dollar expiration program we haven't.
I haven't.
We still have a couple of corridors to go in terms of completing that.
Okay.
Thanks for clearing that up Okay, and then <unk> well I forgot you're just another quick question here on.
On stucco 19, I guess, we haven't heard anything official from the Mexican government as to when you might whether it would be starting up early.
Hum or the 30th of May how long will it take you to to ramp up and and how are things in in around or Guanajuatito with respect to the virus.
Right.
Onto his his next to a <unk> a tone and they are you know with vehicle. We're in a in the late to start up 10 degree dates. According to the mixing governments. So the end of the May end of May use when we can start up there and it's gonna take you know two to three weeks to get to the team in place to go.
Protocols in you know agreed to get all the safety conditions in place. So it's going to be you know a start up in June.
<unk>.
At two P.M. 18th of May is running on the Green light from the government because we have not had any code and cases there. So the team is gonna be <unk> earlier, but the focus is really to get the permitting and.
Monitoring.
Activities in place. So we can start production you know I bet later on so the focus right now is to get.
<unk> mobilized by the end of May in Mexico.
Great. Thank you for that Oh, let others ask questions at this point thinking.
<unk>.
The next question and shrimp <unk> as H.T. Wainwright piece kind of it.
Hey, guys. Thanks for taking my questions.
Mm.
So I go.
[laughter], assuming Brazil seems to be getting a bit worse every day when it comes to the cold with 19 issues I mean and from everything you've said and everything when read squirrel. Your people want to work and they seem pretty good at it too, but I mean, if the government shuts down on the site that's pretty much D.N. The that <unk> I know you haven't been there in person I mean, you mentioned that even though.
You're on this call, but can you just tell us a little bit about what you're seeing from your in country staff, what you're hearing firsthand accounts things that probably don't make the newspapers here in North America and things that we really on picking up on a load of place.
Yeah.
You know, Brazil is a Miami community unit, we're we're not doing your mind in Brazil.
Yeah. As you mentioned that you know, Brazil has been <unk>, particularly a hard hit by cobot and we are seeing it now in our communities with which is which is nasty and.
Employees, you know it it's a tough tough time to upper right. There's a lot of you'd love attention, there's a lot of.
Uncertainty about the code, but in a a really you know my heart goes out tool employees, who who are working on these very difficult conditions, but you know the protocols do seem to be working and the government is right now is encouraging minds to carry on working under.
<unk> protocols.
It is tough.
The minds on upgrading and Neil you've you've probably going a bit more direct experience in in in this city, let me coming tree on Brazil.
Yeah, I think one of the things is a little bit more economically driven than the people in Europe and.
Not working this there's no food on the table, so I think the <unk>.
Get out the N.B., yeah associates recognize that so that they're not in in too much of a hurry to to shut places down as as as long as.
We can show that they've got the vice protocols in place say that it couldn't be sort of accommodate came to us.
In particular, the local community is very very much behind us because we just supplying that's the main source of employee much in the area. So.
Yeah, there's there's there's a lot of southern <unk>, there's a lot of support for keeping in mind open.
Yep.
Are you going to being a a one employer in the area with with Popeo I mean, the minds of boaters remotest to get summit I've been there.
I assume they want to have an issue with the mid 18 startup such currently being grown going around I mean worst case scenario I guess still don't suppose the airstrip in the old wrote in and out of town or or is there are more expensive planes that are being handled to cope with this whole thing.
Meal, you got that one.
Well, yeah I'm I.
As I understand that I mean the.
Well, okay in particular, that's definitely.
One and call your town and we got everybody behind does it <unk> trying to trying to get US open up just as soon as possible.
<unk>.
Against the government side, so it's a slightly different stories, so even though we thought the the men are going out and attending meetings.
To try and get a starting as early as possible. It's it's it's basically the government. That's that's laid down the the major rules.
Having said that there's a there's a <unk> we basically.
He said and it will be starting up on the 18 switches.
Which is it's it's probably just the fact that this is.
<unk> low incidence of <unk>, but for digital the fact that that they local community is so much behind doesn't it is pushing and making a noise on lobbying for us.
Mm mm mm.
Okay, and then just looking for you guys aren't having any issues getting a gold ought to Brazil right.
I go no isn't that that that part of the supply chains working very smoothly.
<unk>.
I'll get back into.
<unk>. Thank you guys come and keep it up.
Thank you.
The next question is from Mike.
<unk> have natural capital markets, he's going to hit.
Good morning, I, just said two questions first.
Respect to to kind of goal is to see any costs.
You provide maybe a little more detailed bridge from the first quarter.
To the guidance range and then I notice are still some stripping and development costs to be spent.
And so I just wanted to going to get your your.
So the key variables since you're focused on there.
Mm.
Okay <unk> Mark just in general terms, we should see the the stripping a decrease which will have.
Pretty significant impact in terms of reducing the sick.
The the fall Encor's will also see the production levels come up and one of the important things to to know is that we report or or a sick and cash costs on a sales basis.
And if you look at our sales versus production numbers for Q1.
We produced 34000 now sold about 26 27000 analysis, so that impact that has quite a bit of an impact on the A.I.S.C. number Ah.
Because we're using a a smaller denominator against the expiration the cap packs all the other items that go into and the stripping that goes into the the I've seen calculation.
So how's our production levels go up from Q1 that will also bring down the the A.I.S. juniper.
Okay, and then just secondly.
Walk us through the timeline on the mitigation measures for the space.
T S up and and the remediation it's required on that Jason T.S. after the phase three and how that might impact permitting.
Mm.
I'm sure I'll take this guys.
<unk>.
Yeah, Okay <unk> essentially the.
We <unk> during November last year, we have a fairly high.
<unk> last year, and particularly high rainfall during November.
I I moved much on this probably o. sets. There's that lies beneath the Chinese just 10 pound much now that triggered L.A.L.S. check the action response plan, which which told us basically that we need to to to stop using the the the T.S.S. two <unk>.
Subsequent to that we've been we've continued monitoring this we've had so so two three months of stable readings to be now back into the into the green So in theory.
We we we can actually go back and start stacking August.
<unk> changed too.
Having said that the the the consultants is is keeping us isn't as in the early stages all the yellow spaces.
Where we where we have six continually installing some instruments on the phase one and and continue with we keep monitoring instead of monthly monitoring.
But because of the <unk> <unk> <unk>. So we haven't gone back to <unk>. So once once we've done once read something new instruments, and and that's kind of be starting so <unk> the.
Earlier about the support of the.
The local authorities well, they've given us permission to to bring in the the team in this this months to do all of the instrumentation in the in the face wanting to do the C.P.T. testing. So we should have some results sometime in in it.
Towards the end of June we shouldn't be in a position way we can we can probably.
Well, we've we've replaced all the instruments and we could probably go back to the Dream States Us and.
<unk>.
So I used to.
<unk> in the meantime, we we'd continuing with to try and get the license on on on site straight. We we we think it's it's fairly close we'll know within within.
Two weeks of of the government reopening so basically we've got it done lots and then if we haven't we will continue sort of pushing to get that.
So I mean that is does that come after I think one of the main thing these days.
Go ahead.
Well one of one of the main things is that's in the summer 2017. They they did this time breaks analysis, but they did it on a on and off as if it was a sort of a watching a watch every Chinese structure oil terms or for your time stamp they'd had the large upon behind it.
Subsequent to that we've basically you can try sucking on top of savings bonds sounds, but the one of the table is dropped 10 majors southern materialism isn't saturated so it's a completely different situations to what to what was when it when they.
See this thing, which is which is why we we read during the C.P.T. test to see the extent of material that could slowly Saddam did style.
Oh, Okay, and that's the remediation. It's it's basically that's highlighted in the M.D.N.A.S. remediation.
<unk>, if if say C.P.T. tests indicate <unk> then what we would do is when we would put we would put in a series of wells and started to <unk>.
That that would be the remediation would be the wells to train as.
Okay. Okay, great listened. Thank you very much is very helpful.
[noise] thinking month.
As a reminder, it is star one to ask a question.
The next question <unk>. Please go ahead.
Oh.
Thank you.
Hi.
I wonder.
Oh.
<unk>.
It seems to mine is.
Oh.
Nope.
Okay.
Measures.
Yeah.
Nothing significant see I mean, you know that we're we're <unk>. We're really it's you know, it's it's a way of working rather than actually Spendings, maybe we might see a little bit of inefficiency, but at the these nodes huge dollar value you know, we aren't helping out the community would piss Gibson, but it's not the dollar amount.
Is is is not is not significant.
I can I add a little bit.
[laughter].
[noise] Oh I was just going to say, yeah, I mean, it in terms of donations I think it was $200000 worth of.
Medical and safety equipment that we put we provide the local councils and that was real upset I mean, the main thing is because to be screaming everybody that comes in it and then anybody that has the slides just so signed that that might be you know sort of having some <unk> anything that looks like a symptom we send them home again, so there will be slight inefficiencies.
Most of that in in in terms of equipment maintenance and an outrageous, but nothing nothing significance at this stage.
God It thank you very much.
And the second question is.
Down.
<unk>.
Mm.
And they only want to address that.
Yeah, what with what we've got is we've got close to a million tons of up stockpiles running at about 6.66 to 6.6 30 grams. It's.
It's it's the government offices to shut down what we would do is what you what we would say we would ask them. If we could go into partial shutdown I'm continue off provide you go to <unk> stockpiles.
What what we what you're doing in the in the meantime, just sort of so this to the government is where we used to be segregating the plant workers from the from the other workers. So that if if it does come to that then we can actually points out.
We've taken these measures under the plan stuff. Just soft is is is is separate <unk>, we should be safe to go on.
Yeah.
Oh, that's very helpful.
Moving too.
The operations that expected to be shut down and.
At this point, Oh, and you know given.
I think about.
You have.
Maybe you can call said.
The government.
No not not not not really nothing significant.
<unk>, a few days or <unk> stockpiling <unk> situation.
It would it would just be a case of up slowly ramping up production.
<unk>.
Oh, and just lost one from the housekeeping standpoint.
<unk>.
But again.
I'll be expected.
<unk>.
Maybe could you please.
<unk>.
Expects to see on the G.N.A. costs Frank.
Cherbak T. I would expect to see that.
The cash G.N.A., so exclusive of items like Sharebased com Grand down to about.
About two two and a half million for the remaining corridors.
Pardon.
Thank you very much.
Okay.
Yeah.
Thinking about them.
The next question is from Jakes account ski Afras capital partners. Please go ahead.
Hey, guys thing sticking my question.
<unk>.
Just a quick one <unk> looks like it accelerated some stripping activities during the quarter, which which is good to see I suspect. These are going to come down over the next few quarters ear Bill to give any color on there just trying to get a handle on what all standing kostmayer look like over the recipe.
Yeah.
Sure Jake of of the.
Of the capitalized stripping cause and if you go to our guidance table, we did give a guidance on the capitalized stripping we incurred about close to half of the annual.
Wow.
Yeah, you one.
So you can use that as a basis to to.
Basically model out the the the Cowboys tripping for the balance of the here.
Is it fair to say it'll be evenly distributed over the next recorders or front end loaded.
I think.
My My my view is probably more on Q2 in Q3, 11, Q4, but maybe Neil can comment on that.
<unk>.
Yeah I think it's it's this is the number of things that are sort of.
I'm I'm the one hand, we still got a a lot of material to to move.
On the I'm the central most pitch.
Ticket in into the into the cups of the old bought in in the north pitch.
But we we we will be.
The second and third quarter, we won't be in into the main into the mind all body, so there'll be less steps that stripping but.
In the last quarter are we supposed to bring in some some stripping for for next year, we we <unk> and also the third call we start to bring in some so there's some of the central south as well from from A.B.. One so it's sort of like it basically it was I think it'll it'll sort of balance out.
But mainly over the third and fourth quarter.
Mm mm.
That's helpful that was all on my instincts.
Thank you day.
Discontents the question and answer session, Alabama, <unk> clutching her Max.
Thank you operator.
Suddenly lost it wasn't important yeah from grade and then as we transition from being a silver producer in a single jurisdiction.
And do what we on now which is a multi jurisdiction gold and silver but use.
Based on the first quarter results. This year, we're up to a good start I'll just see the disruptions due to cope with 19 will be a challenge.
Tucano is by far now our largest contributor and will be.
The focus of our attention as we would to stabilize operations increase cash flow.
And then add more gold too I'm mineral resource base.
I'm confident we now have a solid platform and incumbent team driving growth and deadly improve operations.
Thank you for your participation today.
On behalf of everyone here in grade pencil and I look forward to sharing approaches with you in the next quarter.
<unk> Conference call you may disconnect <unk>. Thank you for a cat dissipating and have the testing today.
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