Q4 2020 Kirkland Lake Gold Ltd Earnings Call
[music].
Good afternoon, ladies and gentlemen, my name is scenarios and I'll be your conference operator today I would like to welcome everyone to the Kirkland Lake Gold conference call and webcast to discuss the company's fourth quarter and full year 2020 financial and operating results all lines have been placed on mute to prevent any background.
Noise. After the Speakers' remarks, there will be a question and answer session. If he would like to ask a question. During this time simply press Star then the number one on your telephone keypad. If he would like to withdraw your question press the pound key with that I would now like to turn the call over to senior Vice President Investor Relations Mark.
Eddie.
Thanks, very much operator, and good afternoon, everyone.
Welcome to our fourth quarter and full year 2020 conference call and webcast.
On the call today are many members of the Kirkland Lake Gold Senior management team.
Speaking today will be Tony Macoute, our president and CEO, David Soares, Our Chief Financial Officer at Intel Cherry, Our Vice President mining the person Lake Larry The zone B, Our general manager of Detour Lake Mine, Ian Hahn, Vice President and Cold eat of Australian operations.
Eric Kallio, our senior Vice President of exploration.
There are also several other members of the management team on the phone as well that may participate in the Q&A.
After we go through the presentation. We will then open up the call to questions. We ask each person to limit themselves to two questions for the purpose of this call the.
The slide deck that we'll be referring to is available on our website both on the homepage and in the events section.
Before I get started I would like to direct everyone to the forward looking statements slide slide two on our slide deck, our remarks and answers to questions may contain and likely will contain forward looking information about future events affecting our company.
Please refer to slide two as well as the forward looking information section of our most recent MD&A dated February 24, 2021 for more information.
Also during today's call, we'll be making reference to non <unk> performance measures.
A reconciliation of these measures is also available in our most recent MD&A.
Finally, I'll mention that all figures given today would be in U S dollars, unless otherwise stated with that I'll turn the call over to Tony <unk>, President and CEO of Kirkland Lake.
Okay, Thanks, Mark and thanks, everybody for being on the call and I.
I guess, it's definitely been a dip.
From time over over the last year and in 2020, there you know as we can say you know what.
A lot of different things happen, but in terms of the people of Kirkland Lake Gold, which includes you know the people that directly work for us our suppliers our communities, where we work and our partners immediate you know everybody really stepped stepped up to the forefront and really put in some good efforts.
We had we had a record year and a lot of different areas.
Some areas, we can be very proud of it and in terms of of how people work together and and and and achieved these results with you when it when it came to COVID-19, and COVID-19 response and are all of the processes that place I think we've had significant success in our sites still really remained very safe and on operating and operating well.
I mean people can feel pretty good about that but what we can achieve cheapest recruitment when we would get challenged.
If I can turn to slide number five.
This is I'm talking about ESG, we've been putting a lot of effort into into it but the difference income components of ESG at Kirkland Lake Gold and really a big part of it do you want us and ensuring that we communicate better in terms of what we do from an ESG perspective, and if you go to slide slide number six.
As I mentioned, a key year for us just formalizing our processes around reporting and public disclosure and and as I also said we've made significant advancements we published our second consolidated sustainable are reported in November of this year, Oh, sorry of 2020 and net we are on track now to issue our 2020 sustaining really report before our annual meeting.
And me and we will be actually issuing our sustainability report every year around the same time with our normal filings that we would be doing it.
At the end of March.
Additionally, we adopted the World Gold Council responsible gold mining principles in 2020, and we have completed our year one external assurances we.
We finally as policies and standards on human rights supplier code of conduct content kind of started conduct grievance resolution and workplace diversity.
We're an industry leader in minimizing greenhouse gas emissions and invest significant funds in managing water tailings and we know we're going to have actually been increasing our efforts in those areas and in going forward and you know the people.
A detour achieved an important recognition in the year with the Tom Peterson.
Morial mine Reclamation award for their Progressive Reclamation program, which which has been going on there for quite some time.
No insights seven as you can see we firmly believe in being socially responsible and providing support to community organizations in group that provides essential services.
At the beginning of the global pandemic Kirkland Lake Gold committed to supporting medical social and community organizations, our areas of operations with a focus on almost in this mental health addiction.
Training and youth training and development and senior citizen care.
Our teams have been actively engaging with the public service organizations in both Canada, and Australia to help those in need both financially and within kind donation of hand, sanitizer masks and other PPE.
Our support for our local community. It goes beyond COVID-19, and there's a long list of initiatives highlighted on this slide in total what they demonstrated as a company that is deeply committed to and immersed in the communities where we operate.
Turning now to the fiscal year 2020 on slide eight we achieved a record year performance, we reported record production earnings and cash flow. We also achieved all of our consolidated full year 2020 guidance, we returned almost $850 million to shareholders through share repurchases and dividends.
We completed the acquisition of Detour gold and made a considered made considerable progress at detour Lake mine, which generated 40% of our free cash flow and he's already realizing some of the substantial upside we saw win when we looked at this asset and speaking up the upside we achieved significant exploration success in 2020, despite challenges related to COVID-19.
And then all three of our cornerstone assets, we made good progress with our key projects and that includes the number four shaft project at Mckesson Robbins held development over at Fosterville and you know what's the biggest driver is going to be seen in 2021, a detour with the with the expansion of.
The resource that we have.
With the exploration success and that combined with the mill expansion Thats mine expansion net working right now.
And.
Before I leave that slide and again I mentioned that we had a record year financially operationally, but we also had a record year for Kirkland Lake Gold from a health and safety perspective with lowest injury frequency. We had now one five.
Five years ever for the company.
Looking at closely now at our financial and operating results on Slide nine our earnings were very strong adjusted net earnings were 923 million or three three to $3 41 per share this increased 23% from 2019.
Operating cash flow totaled just over $1 $3 billion and free cash flow increased 50, 58% to $733 million.
The key driver to our strong performance was significantly high revenue and solid increases in gold sales looking at our operating results. We had record production of 137 million ounces of gold that was 41% higher than 2019. Obviously. The addition of detour Lake was a key contributor to the increase of.
Our unit cost performance remained very strong with operating cash cost per ounce, a full force, which beat our guidance and all in sustaining costs averaged $800 Brown again.
So that's one.
From a from a cost perspective, we are in the leading into the pack.
Of our industry.
Turning to slide.
<unk> 10 from looking at Q4, 2020, again Mary mentioned, we reckon regenerating record results from the quarter production was 369000 ounces.
32% higher than Q4, 2019, and 9% increase from the previous quarter with all three of our operations, having their highest production levels of 2020 in 2020.
In Q4, and 2020, sorry, our unit costs were strong with operating cash costs of $396 per ounce and all in sustaining costs from 790 per ounce.
Looking at earnings adjusted net earnings were <unk> 98 per share, which increased from 88 cents per share in last year's fourth quarter and 92 cents from Q3. The 98 cents of adjusted net earnings was after a <unk> <unk> per share reduction due to prior period adjustments on depreciation cost David stores will discuss that more in detail in a few minutes.
And looking at cash flow operating cash flow was $421 million, while free cash flow totaled $232 million.
Now looking to slide 11.
With our record operating and financial results from 2020, we finished the year with a very strong balance sheet cash totaled just under $850 million is 20% higher than that and then at the end of 2019 and that with no debt.
Contribute to our cash growth was our 80, 58% increase in free free cash flow to just over $733 million as I mentioned previously we also achieved $174 million of proceeds from the proceeds from the sale of strategic investments and $75 million to a strategic alliance with newmont willing to our whole complex of exploration in northern Ontario.
Offsetting our strong cash generation was a significant capital we've returned to shareholders. During 2020 returned $848 million true both a combination of repurchasing shares and growing dividends in the year.
Now on Slide 12 provides a detailed.
I know what we think is one of our one of our very important components of our capital allocation strategy, which is returning capital to shareholders of $848 million returned to shareholders. In 2020 $732 million was used to repurchase $18 9 million shares in the year I should point out that we are we also repurchased an additional $1 1 million shares.
In early January of 'twenty, 'twenty, one and have now achieved our goal of buying back 20 million shares we did that in less than 12 months. We had mentioned before that we would do would be to between 12 and 24 months and that was a goal that we announced as part of the closing of the detour Gold acquisition in February of last at the end of January of last year. We also paid 106.
<unk> million dollars in dividends in 2020, we tripled the dividend during the year through two dividend increases and now are paying $18 75 per quarter or <unk> 75 per year.
Moving to slide 13 as mentioned.
All of our full year consolidated 2020 guidance.
I won't go through each component, but if you look at production we predicted at last year in last quarter's call that fossil bill would beat its targeted range driven largely through higher than planned tonnes process.
We also said during the Q3 call that Mckesson would not achieve its production guidance, which it didn't but it had a stronger fourth quarter and we fully expect it to show improved results into improved results from 2021.
You can also see from slide 13 that we were slightly below our guidance from both growth and capital exploration that really involved the timing of ramping work back up after it was suspended due to COVID-19.
Moving on to 2021.
And then given that 2021 guidance on slide 14.
We issued our 'twenty one 'twenty one guidance in three production guidance in December of 2021 guidance includes production similar to 2020 with stronger growth at Detour Lake and Makassar returning to 2019 levels.
This will offset lower production at Fosterville.
In phosphate low we expect to continue drilling for new reserves and resources.
And looking for the next high grade zone, which will which will which will be a big boom.
The value driver for Fosterville, but as we mentioned previously we're going to really look at Fosterville being more of a 325 to 425000 ounce a year producer and really tried to create sustainability in that week because of the challenges with trying to replace that.
The number of ounces, we mined very quickly from the Swan zone in 2018, 19 and 20.
Our unit costs will remain strong with all in sustaining cost.
Cost guidance unchanged from 2020, we're seeing a shift from sustaining capital the growth capital in 2021, which is largely at detour Lake mine.
Only with exploration guidance of $170 million to $190 million, we will be doing more drilling than we've ever done before.
In our history of Kirkland Lake Gold and we believe we are one of the more if not the most aggressive explore in our industry. We continue to have substantial exploration upside at all three of our cornerstone assets and we will plan to go after that upside very aggressively.
Before turning the call over to David source.
I'll just talk to slide 15, and briefly look at our mineral reserve estimates from December 31, 2020, which were released yesterday as part of our year end results.
It is important to note that our drilling programs for 2020 were significantly impacted by disruptions related to COVID-19, we shut down the drills in Q2 ramping back up to several months in total we did about 60% 60% of our plan in mind drilling at Fosterville and even less than that at Mckesson.
Even without limitation, our total mineral reserves of operating assets increased 3% to 21 million ounces. The increase reflected reserve growth of 6% at Detour Lake basically what we did at detour Lake would become more selective using variable cut upgrades to help us with ore sorting and great optimization to the mill, but also.
Instead of putting some low grade material into into waste piles, we actually said, we would be more selective and placed that into a low grade stockpiles that we can use to proceeds processor and a mine life of <unk> life.
We have identified at that day.
Where we have identified a reserve of 14 million ounces that will feed.
At similar grades to previous years, and we've been separated from that additional 2 million ounce low grade reserve, which would be a low grade stockpile as I mentioned that will be fed into the mill when that when the pit is mined out.
When we acquired <unk>, we saw an opportunity to build a nasty lab and so all from me at night and optimize the feed to the mill using using the stockpiles and really the split of reserves into milling reserves and low grade stockpile material.
Part of that exercise, we will we'll be doing a lot of Blackstone sampling from grade control management had site over the next few years to.
To help in terms of the operation.
And we did announce that we.
We have the permit to increase mill throughput and we do have capital program has taken place this year going into next year to increase the mill throughput capabilities and we have given guidance showing that we're increasing production of $680 720000 ounces a year for the next four years at detour under its current form and with the potential to grow to over 800000 ounces.
By 2025, but all of this is still a still a subset of what we're going to get from the results from from the drilling in 2020 in 2021, net saddle zone et cetera, and by the way no new drilling no no new information was used to into this into the AR from from.
New drilling.
Into the into the reserve statement for 2020 for detour.
This is all.
A catalyst.
The work that's going to be done in 2021 as part of our exercise.
And then weighted and the cash that we did have a small reduction in reserve with law, which again reflected limited drilling and youll see that <unk>. So we did have solid resource growth partly reflects the fact that we didn't get the drilling done to convert resource into reserves as I said, it's about 60% of drilling at Mckesson at Fosterville, we depleted 647000 ounces and average creative.
<unk> three grams per ton per ton, we were able to replace <unk> hundred 39000 ounces, albeit at a lower grade. The reality is to replace the number of bounce from really need to find the next high grade zone with an exploration budget as possible of $85 million to $95 million. This year, we are doing going to work very hard at doing that in 2021, and I also want to emphasize that based on it.
Reserve estimates, we are well positioned to achieve our existing three year production guidance at all of our sites and we expect that 2021 will be a really solid year for free.
For reserve replacement and growth as well and with that now I'll turn the call over to David Soares, Our Chief Financial Officer.
Yes.
Yeah.
Thank you Tony and good afternoon, everyone.
I will start on slide 16, as Tony mentioned, we had strong earnings in Q4 2020, adjusted net earnings totaled $265 8 million or <unk> 98 per share a 43% increase from Q4, 2019, and 5% better than last quarter.
Between adjusted net earnings per share of <unk> 98, and net earnings per share of 86. In Q4, 2020 was mainly related to the add back of $35 million of non cash foreign exchange losses, reflecting the strengthening of the Aussie and Canadian dollars against the U S dollar during the quarter and costs related to non operating sites.
$8 9 million incurred at the whole complex <unk>, which are not reflective of our operations as well as severance cost and COVID-19 related costs totaling $2 2 million for the quarter.
Q4 earnings and earnings per share is impacted by higher depreciation depreciation in the fourth quarter included an adjustment of approximately $10 million were <unk> <unk> a share relating to the first three quarters of the year, resulting from purchase price allocation adjustments at detour Lake.
Turning to slide 17, the key driver of improved earnings in Q4 was higher revenue revenue in Q4, 2020 totaled $691 $5 million 60, 68% higher than the revenue of $412 4 million in Q4 of 2019 and higher than the 632.
$8 million of revenue recorded last quarter.
Of the increase from a year ago of 393 per ounce increase in the average gold price to $1875 per ounce accounted for $146 million of the increase in revenue year over year and $137 million related to a 33% increase in gold sales to 371000 ounces.
Compared to last quarter, we had a $74 million increase in revenue from a 12% increase in gold sales increasing to 371000 ounces from 332000 ounces last quarter. This impact more than offset a $12 million reduction as a result of average price decreasing from $1907 last quarter to one.
$875 in Q4.
Looking at EBITDA as shown on Slide 18, Q4, 2020, EBITDA totaled $458 million, a 16% decrease from $286 million in Q4, 2019 compared to last quarter EBITDA increased 19% from $384 million the change from last quarter relates to net earnings which were.
Were higher driven by revenue growth depreciation in Q4 was $33 million higher than Q3 2020, partly due to increased sales volume, which accounted for $10 million of the 33 as mentioned earlier the increase in depletion and depreciation was primarily at detour due to depreciation adjustments on the fair value estimates related to the purchase.
Price acquisition.
Allocation sorry, these adjustments increased depletion and depletion depreciation expense in Q4, 2020 by approximately $20 million as compared to Q3, approximately $10 million of the 'twenty related to revisions to depletion and depreciation expense during the first three quarters of full year 2020.
Turning to slide 19, adjusted net earnings and full year 2020 totaled $922 9 million or $3 41 per share a 60% increase from full year 2019. The difference between adjusted net earnings per share of $3 41.
And net earnings per share of $2 91, and full year 2020 was mainly related to $58 5 million of noncash foreign exchange losses, reflecting the strengthening of the Australian and Canadian dollars against the U S dollars during the year, the environmental remediation provisions at E&P accounts for $32 6 million.
And transaction cost of $33 8 million related to the detour acquisition.
Turning to slide 20 to look at our cash balance and cash flow on slide Youll see that our operating cash flow was very strong generating over $490 million of operating cash flow in the quarter before $70 million of cash tax paid.
During the quarter, we also invested in our key assets spending $189 million in capital as well as $20 million on strategic investments. We also received $65 million from the sale of our investments in the grade and Novo accounting for the $147 million of net cash used in investing activities during the quarter.
Cash used for financing of $277 million reflected the $245 3 million, we used to repurchase five 7 million shares.
In Q4, as well as $34 2 million used for dividend payments.
Okay.
Slide 21, it looks at the change in cash in a different way you can see that the largest contributor to growth in cash was our operations, which generated about $401 million of cash which is before income tax paid a $70 million gross capital investments $33 million in exploration spending of $36 million.
Cash outflows include costs incurred at our non operating sites at the NTN Holt complex.
As well as corporate G&A of $12 million.
As noted in the previous slide during the quarter $279 5 million was returned to shareholders, including $245 3 million used to repurchase just over $5 7 million shares.
Through the companies and CIB and $34 2 million of dividend payments related to a quarterly dividend of $12 <unk> per share paid on October 14th 2020 to shareholders of record on September 32020.
Next I will turn it over to Evan <unk> VP of mining at Kirkland Lake to discuss performance of cash.
Thanks, David I'm, starting on slide 22.
For 2020, Makassar produced 183000 ounces at operating cash costs of 562, and all in sustaining costs of 922.
There are not these are not the numbers that we were expecting on prior calls we have talked about the impact of COVID-19 on our operations and the excess heat we experienced in Q3.
We bounce back in Q4 and had a solid quarter with the average grade up 45% and higher levels of tons processed compared to Q3.
Production for the quarter totaled 52000 ounces at an operating cash costs of 534, and all in sustaining cost of 941.
The all in sustaining capital numbers will still high which largely reflected the level of sustaining capital expenditures as.
As we continue to catch up on some key projects, including capital development.
37% increase in production compared to the previous quarter was due to a 45% improvements in the average grade, reflecting a greater portion proportion of higher grade stopes and the SMC being mined during the final quarter of the year.
As you have heard.
This year, we expected to see numbers more like 2019 with production of 220 to 255000 ounces and cash cost of 450 to 470.
Next slide please.
Turning to slide 23, looking at our major projects for the year, we hadn't made excellent progress on a number of fronts.
The four shaft project is approximately a month ahead of schedule and on target for completion in late 2022, we're tracking well against our capital cost budget.
$320 million and have the potential to come in below that level. The total spend to date at December 31, 2020 was $177 million.
During Q4, we think the shop 875 feet from a total of 4250 feet by quarter and we also continue to make good progress with steel installation and putting in place all required infrastructure today, the shaft is down around 4600 feet.
We also have projects in place to improve ventilation.
Certainly completing an upgrade project that should increase air to the mine by about 50% to around 300000 CFM.
This should be done in Q2, we are also expanding our ventilation with to vent raises which should add another 200000 CFM by the first half of the year. When the four shaft is done we will go to about 750000 CFM is or better.
We're also doing a number of other projects underground infrastructure mill enhancements and the ramp surface zones, along the amalgamated break.
Generally I will say these projects are all progressing well I'll now turn the call over to Larry Lozinski General manager of Detour Lake mines.
Thanks, Kevin turning to Detour Lake on Slide 24, before we looked at the Q4 2020 numbers I want to call to your attention that the results for the full year 2020 or for the 11 months from January 31, 2020 to the end of the year.
In fiscal year 2020, Detour Lake produced 517000 ounces of gold sales were 537000 ounces for the year.
<unk> for the year was just under the guidance range of 520 to 540000 ounces.
Reflecting a slightly lower than planned average grade.
Looking at unit costs operating cash cost average $625 for the year all in sustaining costs per ounce sold averaged 1100 and $71.
For Q4 2020 production of Detour Lake totaled 153000 ounces at an average cash cost of $612 and an all in sustaining cost of $207 per ounce.
Looking at 2021, you've already seen the guidance, we expect significant growth in production to 600 to 700 680000 to 720000 ounces.
Based on our own over 24 million tonnes of throughput at a much higher average grade.
To support this growth we have received a revised air permit to support annual production rates up to 32 million tons.
Although our current plan does not fully utilize the new limit, we do anticipate reaching 28 million tons as previously.
Spoken about earlier.
And throughput and the new plant.
With the growth in production unit costs should improve with cash costs of $580 to $600 per ounce and all in sustaining costs better than $900 per ounce.
With lower sustaining capital expenditures.
Moving to slide 25.
Tony mentioned earlier, we have a number of projects at Detour Lake.
We're investing in significant mill enhancements to improve throughput by adding screens to the crushing circuit.
Adding leach tanks.
A detox tank and capital improvements to the CIP in gravity circuits.
We're also continuing with our major tailings expansion project.
Surface infrastructure projects include a new assay lab.
The integrations on periods Porsche airfield welding sure Ken camp expansion improved.
Improved access roads and.
Payment of areas around the camp surface buildings in the front gate, which also includes a new way station.
Mobile equipment procurement was a key area of capital expenditures as well in the second half of 2020 as we upgraded the fleet in support of planned growth.
This will also continue in the 2020.
We also have significant deferred stripping component in our growth capital this year, which reflects a major stripping campaign, we have planned as part of phase four which will support production in future years.
With that I will turn the call over to Ian Holland, Vice President and co lead our Australian operations.
Hey, Thanks, good afternoon, everyone I'll be speaking to slide 26.
Hospital had a record production year in 2020.
640000 ounces that's free.
8% higher than the 600 non anchor dances.
29.
The 640 <unk>.
Answers of production.
We exceeded the full year guidance for 2020.
This was driven by claims tonnage.
The increased tonnage more than offset the reduction in the average head grade.
Throughout 2020, we invested in infrastructure put them on to continue to support the higher mining rates.
We completed the <unk> system.
Our new gold room.
New transformer station.
And these projects along with the addition of Pottsville down again operations very important for the increase in volumes.
We continue to achieve very low costs in financial year, 2020, with operating cash costs of $139 per ounce.
Higher than last year, but on a G to the slight reduction in average grade.
All in sustaining cost per installed for full year 2020 average $312 average.
Is $291 in the full year 2019.
The change is a result of the increase of royalty payments.
Resulting from the new royalty the Victorian government introduced as of January finished last year.
If we exclude the impact of that new royalty.
So for the full year 2020 actually improved non consent from.
From the EBITDA 29.
And this is mainly due to loss signing capital expenditures.
Looking at Q4, we produced 160 people with ads and answers.
This is based off of 194000 tons at an average grade of <unk> 28 grams per ton and average mill recoveries of non <unk>.
Are these production compared to record production in Q4 29 of 100 and.
92 day and answers.
When we had a record quarter head grade at <unk> 43 grams a tonne.
The production for Q4 increased from.
From the 162000 ounces that we manage the non key trade and this was purely a result of slightly higher tonnage throughput in Q4.
Turning to 2021 Chinese already addressed it.
Transitioning to a higher tonnage law of gravity outlook.
We play in lower levels of production over a longer period of time.
While we continue to have very extensive exploration programs.
With that I'll turn the call over to Eric Kallio, Senior Vice President of exploration.
Thanks, Dan and good afternoon, everyone. My first slide today, we will be number 27 summarizes final results and year to year changes for exclusive resources.
And as indicated and we've already heard earlier, we did a test we did experience some challenges with this resource is replacement.
But in large part due to Covid COVID-19 and not just not being able to do all the drilling that we had planned.
Above.
Did see some success and good growth from the Casa and detour didn't hear.
Here, but for slightly different reasons macassar, we saw almost 32% increase in <unk>, 4% and indicated which are basically areas that we did have exploration success.
But just not enough time to be able to convert these to reserves.
For Detour, we also saw good increase of about 20% for <unk> and 29% free inferred.
This was mainly due to an increased price for the gold using new update which was $500 U S vs 300 in the previous.
Aside from the above we did see a sizable decrease at fosterville, including a 32, 33% drop in <unk>.
At 27% drop in inferred at Fosterville mine and then looking at this can say most of this is due to the limited drilling a large amount of high grade that was depleted during the year, but also due to some refinement of resources at Harrier Cigna. We also removed some lower grade historically sources in the upper part of the mine, which are away from the current mining.
Turning now to my next slide which is number 28.
Okay.
The slides related to detour, where we're continuing to advance the large scale drill program started in early 2020 to evaluate resource potential near the main pit.
As previously announced the program includes a minimum of 250000 meters of drilling and are designed towards creating an updated resource and potentially expanded mine plan for.
For early 'twenty two.
Shown on the screen that the long section through the area being jail in Chile.
<unk>.
The results from our latest <unk>.
Press release, which was announced in late December.
Our third sexually since starting the program.
As shown on the image. The release includes information from additional 25 holes from the project, which would drill mainly into the saddle zone.
As well as some are first of all to test the potential extensions of mineralization to the west or west pit and overall continue to be very positive with several hole intersecting broad zone of mineralization with.
With attractive open pit grades, but also higher grade subsidiary results, which could provide potential for underground resources as well.
Although there are large number of highlights in the release to talk about I believe it's worth drawing your attention to the east part of the saddle just west of the main pit, where we had quite a few holes, indicating both the broad zones of mineralization.
Several of them being between 150 to 200 meter wide.
But also in containing higher grade subsidy rules are very shallow depths in some cases right at the bedrock interface, although as shown by the Green dots. There is large number of holes that could point to some of the key ones could include 25, <unk>, which had which intersected 4.02 grams per tonne over 43 meters at 258 over 79 as well.
28, which intersected for three eight grams per tonne over 31 years.
Additionally, this we also had several other good holes in the central part of the saddle, which continued to confirm continuity the system between the two.
Pit reserves as well as some very good results up to 200 meters west of the west pit.
And somebody worked to date at day tour continues to go very well, we now have 12 drills on site and all the necessary.
Equipment to complete the program.
Feeling very confident about hitting our goals by year end.
So now turning on to slide number 29.
We should see an image from a capex.
Where which was one of the main areas that we did absorb a solid hit from the Covid and in the end resulted in us only doing about 60% of our planned drilling and also coming up slightly short of replacing all reserves.
Despite the above we do feel that there was still a lot of exploration success during the year, including intersection of new high grade zones in several areas of TSMC definition of a new 700 meter long.
High grade corridor at the main break as well as identification of almost 180000 ounces of new inferred.
Resources.
Which we believe could have replaced much of the remaining.
Reserve shortfall, given a little bit more time.
So considering the above and the fact that all drills are now back up and running we feel we're now back on track to and rates start replacing reserves again in 'twenty, one, but their target for the year again being about 250 to 300000 ounces.
So details for the plan are shown on the slide as indicated focused strongly on direct extensions of the SMC to the east and west as well as the Malcolm weighted which are areas. We've always had success in the past. In addition to this we are initiating what we feel is some significant new work on a 34% and 51 levels to start testing upper parts of the main break and aerie.
As to the South where we where we believe there could be new SMT SMT type structures.
<unk> also planned from a new surface ramp as well as on regional exploration.
In total the program will include about 2000 meters of development 226000 meters of drilling with about 40% of the drilling being dedicated to the SMC west.
40% to the east and the remainder to the new projects.
And the new development will be as shown on the slide will be completed in several areas defined by the yellow.
<unk>.
Designed mostly to support drilling into these new areas.
So now turning on to slide 30.
We should see a slide for Fosterville, whereas in Canada. We also had some strong setbacks from COVID-19, which caused us to lose about 42% of planned drill meters and being unable to gain some very important platforms to test downtime of the Phoenix since one.
These two items plus the large amount of depletion Disney here are some of the main reasons for the change is seen the reserves and resources with the remainder being from Reinterpretations, new drilling movement as well as movement of certain low base zone in the upper historic part of the mine to a mineral inventory.
Sites on the above we do feel there are a lot of good accomplishments again.
Exploration.
In 2020 here, including new high grade intersections at the Swan Signet carrier as.
As well as extension of the mineralized envelope that Robyn heal up to 900 meters down plunge and continuing to see.
Instrument and signs of quartz with visible gold similar to this one.
Given the above we remain optimistic about our chances for success in 'twenty, one and that's what is the cash that designed what we believe is a very good program with a strong chance of replacing the ounces we will mine.
Okay.
Again, the details for the plan are shown on the slide and will focus mainly on the lower Phoenix and Robin's Hill areas, we have 232000 meters of drilling five six.
Six kilometers of development.
Approximately 65% of the total meters will be dedicated to the lower Phoenix, 25% to signet.
Oh, sorry, 65% to lower Phoenix and Cygnet.
25% to Robin's Hill, and the remainder to other new projects onto my leases.
Turning to development was split between lower Phoenix and Robin's Hill.
20% of the meters going to lower Phoenix to develop new hanging wall platforms. So that we can drill down plunge as well as to completing two new hanging wall as well.
And then the other 80%.
Being targeted towards Robin's Hill, and continued to advance the new exploration drift towards the Robin he'll reserve.
So in summary, 2020 was a bit challenging from a cash then fosterville, but we believe things are looking up in 'twenty, one and on the other hand detour already had a good year and we think this one will become even better.
With that I will pass the call back to Tony.
Yeah.
Hey, Thanks, Eric and thanks, everyone for listening in everyone for contributing on the call, but you didn't.
Too long and try to be concise here anyway, I'll just finish up here on slide 31, and you know I mean definitely you can see that was.
We had a good strong year into 2020, yeah with COVID-19, and you you might sit there and say well, it's a year, where you might want it and forget but at the same time you know we had some significant <unk>.
<unk> and really get a sense of the quality of people and what people can do when he worked together.
And you can look at the weather with record levels of production earnings and cash flow for the company or you know record sales.
Safety results and really some strong performance in terms of.
All of our of our responsibility responsibility to the communities we live in and we work into the people that live in those communities and the.
The environment and et cetera.
Going on with the company anyway.
Some other highlights for the year again.
In terms of returning $850 million to shareholders in 2020.
When share repurchases and dividends were both net promote both were strong in and we as I said, we met or beat or met our guidance on share repurchases.
Into January of 2021.
We have a strong balance sheet, our business plan going forward positioning us very well to have really good strong success in 2021 and the next few years and we have an extremely large exploration budget, but.
We are going to sit there and say 2000 twenty's behind us only because we got some such exciting things as Eric talked about some exciting things from an exploration point of view in 2021 and you know we we are we have given up some updated guidance for Dieter again that shows growth in production and ditto for the next five years and now it's really just.
A subset of what a real view of detour is going to come and with the exploration drilling being done in 2021, and our continued advancements of permits in 2021 at detour.
The continued development of the new shaft at Mckesson and what can what can happen there plus the ongoing developments at fosterville into Robyn channel plus.
Very aggressive exploration program going on that down net down at Fosterville and in 2021, So it's a very exciting year and good.
We look at where our share price isn't where we can where share price can go over the next few mix next year as we as we as we demonstrate new value coming into the company to be an exciting year for shareholders.
We also have a lot of other initiatives, which will be coming on in terms of how we're going to how we're going to move forward from a from a from a social responsibility point of view, where we want to take ourselves in terms of leading the industry are being being upfront pension front and center in the industry, whether it's to greenhouse gas.
Either it's to community support and and and and whether it's really going to into the 21st century strongly in terms of automation and digitization of at our at our sites and making smart minds over the next few years, but those are things to talk about it maybe at our next call Center next meetings I know, we're gonna when maybe we will get to see some of you personally.
BMO Conference next week and definitely we're always open to any calls from people want to talk and have meetings here.
I'll always wanting to speak one I wanted to people, but with that anyway, I'll I'll end the call and he'd be happy to take any questions. We got it. Thanks.
As a reminder, if you would like to ask a question you will need to press star one on your telephone.
Your first question comes from the line of Tyler Langton from JP Morgan.
Yeah. Good afternoon, Thanks for taking my question.
Just with the exploration at Fosterville.
I guess do you have a sense of whether we will be getting I guess updates throughout the year or is it something more to expect a sort of towards the end of the year early 2022.
Okay.
K, it's Eric.
<unk>.
We don't have actual timeline.
Plan to bring out an exploration release, we due to the releases when we feel we have significant information that we can.
Announce.
We do feel that we're making steady progress on the programs. There I can mentioned we're excited we've got broad systems identified we're seeing characteristics at the Swan zone.
But.
The press releases will.
There is no timing for them.
We.
We'll give updates as needed.
Okay, and then just as a follow up on that.
Capital allocation.
You sort of you know this year is it more I guess preference for the dividend or how do you think about buybacks and just kind of any color there would be great.
Well I mean, we in terms of our capital allocation and strategy. We communicated a couple of times in a number of areas that we want to really focus on and definitely.
Our dividend is in Reno, we have a strong dividend and you can see as we progress into 2021, we have both a strong cash position and potential for further free cash flow generation, we are going to be.
<unk> towards being strategic with her in CIB, where possible and we're going to we will be considering what we can do with our with our dividend.
Terms of growth, but at the same time, we want to we want to make sure that we can we can fund.
And be well positioned to drive new value for the Kirkman Lake for shareholders and you know whether it's in relation to get again.
<unk> exploration program, we have for this year, our aggressive investment into growth, we see a detour plus or you know what we're looking at in terms of trying to do at Fosterville.
We want to make sure that we responsibly keep keep our business strong and profitable but at the same time, we you know returning.
Good portion of any free cash flow to shareholders and we don't see ourselves building up a cash position to a vote.
Over $1 billion of multibillion dollars, but I don't know David if you want to give any more color on David Soares, our CFO as a color on that Theyre not told me I think.
What you just mentioned in terms of having progressive sustainable dividends and looking for opportunities to grow the dividend when you can.
And our shareholders have expressed.
Interest in close to buyback, Kansas right. So the things we consider on an ongoing basis as I said, we'll be opportunistic on the buyback.
Okay, great. Thanks, so much.
Your next question comes from Oman.
<unk> Habib from Scotia Bank.
Hi, John Ian Cook net game, Matt Thanks for taking my questions.
Just a couple of questions from me and I'll pass it onto other days on the on the call just based on the pretty good guidance at Fosterville.
The plan essentially was to reduce the material from the Swan zone.
Does the new reserve grade change your thinking at all in terms of the mix or increasing the throughput to manage that reserve grade.
Okay.
I mean, I think in terms of where we're going I mean, a lot of the plan. We have this year as is true dredged to be.
To improve the mix going in I mean, you have a lot more flexibility now at fosterville with with improved ventilation and paste fill et cetera and.
But opening up more phases of that but I think you know.
Maybe he can give a little more color there, but we also see that you guys agreed is reducing or in terms of what we got for a resource that we need to get me be being able to be less selective and more more more able to be more proportional to the mining and in various areas, but Ian do you got any more color to that you want to get.
Yeah sure Tony I mean, we've got.
We've got a really well.
Sure.
Rainfall and mine stripping fronts.
That is GAAP into law.
Geotechnical sincere.
Considerations price deal was certainly unlocked a few favorite at flexibility in that area.
And in the broad design chat with total in Iraq, and we start to get into the secrets and things like that.
<unk> tonnage and Laura it's Joe.
But what it does is give them on a page that flexibility.
Things got wrong, sometimes side.
The more the more stoping fronts that we have then then the more rival the saudis to be attic type with any sort of bumps along the way.
I think we're setting ourselves up for free.
So a pretty robust.
Production production going forward and Thats reflected in the tonnage numbers.
Thank you Anne and just.
In regards to the reserve replacement that is possible when it comes about.
3% of depletion.
When was this material added from it because it's coming from a net carrier lower Phoenix can you give me a little bit color on that.
You, Okay with that Ian.
Sure.
Hey, guys, Hi, Eric do you want to tackle that one.
Yes.
On the call.
Hudson that.
The big focus for the drilling underground was really.
Lower parts of the.
The lower Phoenix, which we could reach from the annual grip that we have in place already.
<unk>.
As well as the Cigna.
Those are the two main areas that we didn't generate any reserves profit tail.
<unk>.
Okay, and then and then just.
Once you kind of you.
220 drill program.
You talked about where you guys are going to be targeting in terms of how that plant is going to be paid out can you give us a little bit color as to where that reserve replacement is going to come from for 2021 day.
But we don't see that pickup journey.
Yeah exactly yeah as I mentioned, we've got.
The large majority of our of our drill meters are allocated to the lower Phoenix.
Down plunge of the Swan reserve and that drilling is going to get done to.
From a new hanging wall drift that we're.
That are in progress at actually at this year end and.
We think can be completed sort of mid year.
But that's going to allow us to drill quite a ways down plunge.
Maybe not the full 900 meters, but it will give us a big area to drill and so that's going to be a big.
Component.
That there we also hope to be able to add to the reserves that Robin's Hill.
That's really the main areas.
Uh huh.
Got it thanks, Eric and Thanks, Tony and then that's it from me.
Your next question comes from the line of Cosmos Shue from CIBC.
Hi, Thanks, Tony and team for the conference call.
Sorry, Tony I wont be seeing you at the BMO conference, but I've heard it's not that day.
[laughter].
Maybe maybe my first question is on day two here.
Good to see that Tony you got the apartment to get up to.
Turning to 8 million ton per annum.
I guess as you talked about you're not planning to get up there just yet but.
Have you thought about that works out to about 90000 tons per day have you thought about how you could get up there what I used to cover detour they had talked about potentially like a third line.
Segmental ball mill configuration.
Maybe some backend more leach tanks in our back have you thought about you know.
Once you get there how you might get to 90000 tonnes per day.
Oh, sorry.
And Larry on the call you can maybe give some color to this but right.
Right now if you net program capital programs for <unk> for the processing in 2021, and 2022, we're doing a lot of things to improve.
Improved throughput at the mill in terms of whether it's new need some additional leach tanks with improved improved performance from the crushing either through screens and alternate feed systems try to work on an on scheduling and again the things that give you more flexibility to improve in terms of overall mill availability and <unk>.
<unk>.
There's a number of areas right now I think as we discussed previously from from our perspective I think Larry mentioned, we we know we are seeing is getting up to somewhere around 28 million tonnes, a year, which is about 80000 tons a day and what we are at a point when we say it's sort of in one way we are.
We're not necessarily working towards that.
100% just drive throughput at the detour as being a big growth strategy. There because we need to also want to improve grade control and great management and that's part of us when we install a new assay lab. This year and we maybe will be able to do a combination of all of them improved grade control.
Delivery to the to the plant and building building stockpiles over the life of the mine that can really generate a lot of cash flow, but I don't remember you got any color you want to give in terms of a mill.
Mill performance. Thank you Tony the only thing I would add really is.
Over the course of the next.
A couple of years, there's a lot of capital going into the mill very serious.
So increasing the crushing side.
Obviously, it's going to.
You're pushing the material through the through the mills and the rest of the plant.
We need to understand and continue the debottlenecking to get to that 28, and then maybe two or three years down the road and we understand exactly how the mills running them and then you make more decisions from that point.
But.
The line the current search.
That line.
Reis will definitely.
We are not quite sure what the.
<unk>.
But the final.
Total throughput might be on that and yes. There is an opportunity to do a third line, but right now we don't we're not in we're not seeing the.
Requirement to do that yet.
There is a lot of other opportunities in terms of maximizing <unk>.
Throughput low.
Which lowers cost and but I mean fundamentally we want also try to optimize grade delivery to the mill at any one time.
And then be responsible for the pull deposits, so that's where sort of throwing a lot of low grade away. If we can start creating a low grade stockpile.
And use that.
Saves us on tailings too because and disturbances on surface.
And our overall.
Footprint on site and a mine life. Because then we process that we put it back into pits.
We create a better closure plan for detour.
And then my second question is on your <unk>.
'twenty one outlook here.
As you talked about Q1 is our lowest production quarter.
The highest sort of all in sustaining costs per day you.
Also gone by saying that the all in sustaining cost is higher due to the timing of Capex.
Staying in Capex could you maybe help me out because.
During the presentation, you talked about detour, a big part of the Capex is the tailings facility my understanding from before was that a lot of that money spent on tailings will be during the summer months.
So I'm just trying to reconcile net all of the profile of Capex.
For the company and how that fits in with what you have talked about a day.
Well I mean, the detail. So first of all if you do have the tailings that.
That is it.
Not necessarily 100% stock.
Remember that there is an old saying why wait for spring do it now right. So I mean, there's a lot of stuff, we are continuing to progress and we need to progress tailings, but in terms of capital programs a lot. There's a lot of the mail programs that are taking place from a capital perspective at detour. There is theres the aggressive exploration that's part of the part of our costs.
In Q1 and Q2.
Moving on anymore.
That Larry.
Got it all there.
We do have some deferred stripping happening that happens in Q2 Q1 Q2.
Yes.
And then the cash.
It's progressing at cash said, we're looking going to the next phase of wood chat.
Just thinking in 'twenty and 'twenty, one, but also some more shaft infrastructure starting to come into play such as you know.
<unk> been sitting.
Mark on those type of areas.
We are doing some work.
I'd for detour in terms of.
How we progressive set of liquefied tailings deposition too to a high density paced type of tailings deposition for better water management as we as we progress into future years.
Great. Thanks, Thanks, Tony that's those are the two.
Two questions I have and I look forward to that.
Under a 2021 joking aside have a good time at the BMO conference.
Yeah.
Your next question comes from them.
Oh, sorry go ahead.
Just to finish up at Cosmo assets, that's already a good.
One point that may be true forgot to mention we did we mentioned that all in sustaining cost per ounce was going to be the highest in Q1 not necessarily sustaining capital.
And so because our production production in Q1 was.
Lower than that in future quarters, So that's a big driver.
<unk> P AFC per ounce in the quarter, so sorry about that.
No problem.
Next question comes from the line of Mike Parkin with National Bank.
Hey, guys. Thanks for taking my call.
Most of my questions were answered, but you've got that nice permitted or the way.
Well actually it wasn't a nice permit.
But you've got the new one in there for detour can you give us some color in terms of how often maybe in Q4 in the second half you were bumping up against that daily limit just to get give us a sense of just how kind of handcuffed you were in being able to show what that mill can really do.
Thanks, Mike Larry here.
Throughout the year last year, I think we bumped up against that.
About 70 times give or take.
It would manifest itself into the middle of having a kind of slowdown.
In mid to late night shift depending on depending on the situations range. So so.
I think although we could.
As is we could we could take advantage of that permits but not to the degree that we plan on taking advantage of it.
The throughput initiatives.
As we get later into a low.
Later into the year this year and then into the following years.
<unk> consistently above that level 75000.
Okay.
Sorry go ahead sorry.
Alright again at the end of the aspects of increasing throughput because also we don't want to do that index at the expense.
Recovery total so thats the other aspect of it.
Bumping and this is sort of leading in you get the permit to this level. It leads into a lot of the capital and the programs, we're putting in place at detour.
<unk>.
Both improved mill throughput, but also improve mill performance.
At the operation Zone.
Okay, Great I guess, the tankage as to kind of keep retention times.
Similar given your throughput is going to be on a alright. Thank you very much that's that's great color.
Okay. That's it from me.
Your next question comes from the line of channel to Marcel from John Tumazos.
Hey, John Thank you.
Yeah.
If you could explain.
A little on the detour.
<unk>.
Above a half a gram classified 408000 ounces it looks like.
Or the reserve went down more than depletion.
And then Oh.
Almost 2 million ounces at point for one are those all end of life stockpiles.
So again, the attach of assay or our VP technical services.
<unk> certain senior she can answer a lot of this stuff.
Hi, Natasha.
As part of that.
Sure.
We did.
<unk>.
The geology model and so it did have an impact.
Does it change the shape.
Okay.
So it did have an impact.
It could change.
<unk>.
The cutoff grade.
Thanks, Tom and Jim Please.
Basically what we end up.
Totally.
They can be more selective in that and how quickly.
It might be.
So I.
Just wanted to check that.
Could that be optimizing production flow.
Globally.
And stockpile low grade.
Mainly at the end of March.
And the ultimate Yes, that's right and you also didnt make the pitch smaller loans.
Probably.
Oh Wow.
Yes, it seems like one of the things that we did.
John is like with the with the.
<unk> reserved so you'd say we.
We depleted some but what we did was there was some marginal ounces maybe at the bottom of the pits, where we adjusted we adjusted we did and we adjusted cost et cetera from previous years in terms of what was in the model on previous reserves and so the pit doesn't drop pulled down quite as far as it was before.
That's where it looks like you did some ounces came up but it just because it fits a little bit smaller right.
If I can ask another on Fosterville.
Just the three year production forecast solely from the reserves already on the books or does it include some inferred or does it assume a few extensions that you think are there, but still need to document.
John.
And neither does.
Have you found the financing model.
Paul.
Thank you.
Yeah.
Your next question comes from the line.
Robert now Friday from <unk>, Inc.
Thank you very much for taking my two questions.
First of all I am a little confused.
All of the reports that you.
Putting noted in the last while I have been extremely positive and extremely encouraging.
But for some reason the market is not buying into it. It's a matter of fact, if you take a look at the stock history in the last six months, it's been down about.
I'd say $25 or so over the last year, it's down about 30 to $33 today Youre, making another announcement thats record breaking in all areas.
We have more cash than anybody we have more reserves, we have more confidence leadership and so forth and yet here. We are last time I checked it was down $1 50.
So my question is this.
We are so positive about this stock.
Why is plummeting.
And secondly.
What.
Are you is the executive of this company planning on doing to stop the bleeding and the preliminary and that seems to be affecting the stock I mean, it should be according to I think Scotia bank should be trading between $65 to $70. Yet here. We are what is it 43 something.
Can you please explain that for me please.
Thanks for the question Robert You know first and first thing Rod remember days.
I don't know if I can get yourself, but I can date myself remember, there's an old saying that says you can eat you can lead a horse to water, but you can't make him drink right. So you know we you know.
B you know you do sometimes you have to.
I have to.
It has to be something that people want to own et cetera.
Definitely.
There's been a lot of positive growth and continued positive things messaging and positive things that we're doing it.
At.
At Kirkland Lake Gold and it's up to us to demonstrate value and drive drive new value for shareholders.
No.
Market.
Hole in the gold space.
Theres some sometimes you things things things things are you kind of wonder what can be going on I think we have to we look at first principles that we got to tell our story and we got to execute our story as we have I think.
There's a couple of key drivers.
The valuation of KL and I'm sure everybody wanted one as is possible and wears fosterville gonna go.
With new discoveries et cetera, and then as we continue to progress we've got big catalysts at detour. This year, the upgraded updated resource and an updated reserve that we expect for 2021 and that tied to a whole new updated mine plan et cetera that might even.
Bringing those ounces of John Tumazos talked about came out because we get slightly smaller maybe just split it would be bigger again. So there's a lot of these catalysts that we got to work to drive and demonstrate new value and.
Italy share prices should should go up because of the there's nowhere where somebody sees.
The overall value of the company was $1 yesterday, but tomorrow, it's going to be worth $2 and that's how we got to demonstrate value it's got to be that in.
I don't know I mean in terms of the market.
The market sees I think the biggest probably.
Thing around Kirkland gold is going to be what's the what's the relationship to Fosterville and <unk> and then maybe over time, we definitely we work and demonstrating reason why detour with such a great acquisition for the company.
Okay, but how do you get the message across because on the reserves that you have right now in the cash and the fact that you have no debt.
According to some of the analysts this stock should be trading in the sixties.
And yes, it's true that the 40. So it appears to me as if that message isn't going out there. So what does the team have.
The plan to make sure that that message gets out there that it's a $60 stock or $65 stock as opposed to a $43 stock because it is today.
As does the team have any idea of how they are going to handle this.
Well I mean again you know.
We need people like you are going out there and saying this is a $60 stock it's important.
Fundamentally it is us.
To demonstrate.
The results.
To demonstrate that the business as it goes forward and again the biggest catalysts are going to be what we see as new discoveries at Fosterville.
That's a major catalyst driver, that's only going to be positive and as we complete the day, what we're working on it we've had <unk> this year and what that can do I mean, we can tell as we can tell a story, but we're what we're trying to do is in our story.
Total tell the truth and demonstrate step demonstrate that.
I know and I'm sure and then you can see by quite a lot of the analyst reports that people are seeing it and it's going to take time for people, they're going to want to know it's there and then people will be buying and just talk and there is a lot of value and it is a 60 or 70 dollar value stock and it's true.
It's going to be coming over time, as we as we demonstrate that value and you've got a big pullback in the gold price you've got other things that happened that's up we don't control and we don't take credit for it.
And when it goes up and we don't take blame for it when it goes down we've got a focus on on value in the business right.
Are there any promotional aspects that the company or the executive Ken undertake to get that message out there because I can do it but I don't really want to reach five or six or 10 people.
We do more.
Does that mean.
Well, we I mean, we we do have a lot of marketing you've got to recognize the marketing has been virtual and we continue to to.
To.
Be heavily out there and communicating to our existing shareholders and to new shareholders, whether it's the.
The BMO conference next week, so theres, a number of things happening over the next.
Few months here.
We continue to communicate too and it's.
Everybody you heard on this call and a few others.
<unk> are out there talking to shareholders and communicating but.
We are in and you know I wouldn't say, it's a challenge we've got virtual meetings, where we're getting good at virtual meetings. It's about it's about getting continue to get the message God. It's it's it's it's.
It's challenging, but it's a new opportunities for us.
We do have an aggressive marketing schedule.
That's going to be going on over the next few months, but it's fundamentally you know we're not about trying to to tell to tell a story, we're about trying to demonstrate the results and make sure that the story that we're.
What we're telling you we can demonstrated and results are you going to see over the next six months or a year right well hopefully you'll come pretty soon otherwise this thing political pack down at $25, which none of us want to see anyway.
Keep doing well I shouldn't say keep doing what youre doing because its not closed down but hopefully this will stop.
You will see it back up to $60 $70 in the near future. Thank you very much for taking my questions.
Thank you very much you take care bye bye.
There are no further questions. At this time you may continue with any closing remarks, you may have.
Okay. Thanks.
And thanks, everyone for participating today and I'll just put my my my own take on the last question and that is that right.
Right now we believe we're an excellent buying opportunity. We think we have a lot of value upside in front of the company. We have three outstanding assets, all of which has a significant exploration and value creation upside. So key for us is as execution, both operationally and with our exploration programs and then aggressively market.
And let's make sure the street realized progress, we're making and Thats exactly what we expect to do and on that in that vein I'll say that we're very much looking forward to our next quarter and cost. We can tell you how much further we've come thanks, a lot for participating today and have a good day.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
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