Q4 2020 Fortuna Silver Mines Inc Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the Fortuna Silver mines fourth quarter, and full year 2020 financial and operational results.
At this time, all participants have been placed on a listen only mode and we will open the floor for your questions and comments. After the presentation. It is now my pleasure to turn the floor over to your host Carlos Baca, Sir the floor is yours.
Thank you Matthew.
Good morning, ladies and gentlemen, I would like to welcome you to Fortuna silver mines into our financial and operations results call for the fourth quarter and full year 2022 day, we'll be using a webcast presentation, which will be controlled by us. So download. The presentation. Please go to our website at Fortuna silver Dot com click on the investor's tab.
On the financial sucked up in under Q for 2020 click on the earnings call presentation link Jorge.
And also president CEO, and director and Luis Dario and also CFO will be hosting the call.
Before I turn over the call to Jorge I would like to indicate that this earnings call contains forward looking information that is based on the company's current expectations estimates and believes these.
These forward looking information is subject to a number of risks uncertainties and other factors actual results could differ materially from a conclusion forecast or projection in the forward looking information certain material factors or assumptions.
Were applied in drawing a conclusion or making a forecast or projection as reflected in the forward looking information additional information about the material factors that could cause actual results to differ materially from the conclusion forecast or projection in the forward looking information and the material factors or a.
<unk> that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward looking information is contained in the company's annual information form and MD&A, which are publicly available on SEDAR. The company assumes no obligation to update such forward looking information.
In the future except as required by law.
I'd now like to turn the call over to Jorge Alberto and Osaka co founder of Fortuna.
Thank you Carlos from.
Good morning tool.
Yeah.
We will.
Thank you through.
Our results for the quarter and year end.
With the aid of the.
Slide presentation Carlos mentioned before so we can go and Carlos to slide five presentations.
Yes.
Through our work or less.
Three years, we have come to place ourselves in the most exciting position today as we are delivering significant growth in gold production and a rising pretty she was met those mark.
This year for growth.
From guidance from our three mines is in the range of 260000 to 300000 gold equivalent ounces, an increase of 80% to 100% over 2020.
Next slide please.
Under highlights for the quarter.
We have reported record breaking free cash flow of $34 5 million and our business operates with a robust adjusted EBITDA margin of 43 per se.
We have strong liquidity of 132 million with net debt of 34 million and net debt to EBITDA ratio point for we expect to be net cash positive share gains this year.
In total production first the neuro business first gold in October 2020, and delivered 13000.
435 ounces in the fourth quarter as per.
Part of commissioning and ramp up activity.
During this ramp up quarter in there was cash positive generating approximately $5 million from free cash with an all in sustaining cost under 1100 Dogger.
Ramp up to design capacity continues during Q1 of this year.
During this unprecedented year, our operations suffered temporary suspension of production for.
For semi in Mexico was down for 50 for these carryover mine in Peru.
Zone for 'twenty, one day, and Linda construction activities were suspended.
Almost three months considering reorganization.
The company was quickly implement containment measures for COVID-19 across all sites mitigating risks to our people.
Neighbors.
Yes.
With rapidly changing government regulations, and guidelines and ensuring business continuity.
For the rig costs attributable to managing the COVID-19 risks across all sites amounted to $4 million in the year.
Moving onto slide seven.
We're listening to our shareholders and stakeholders in general we're not only improving our reporting on ESG, but undergoing a cultural change for the way we incorporate sustainability in our strategy and business planning through.
Through rigorous materiality assessment.
We're prioritizing our efforts this is a journey of continuous improvement.
We have strength in government, that's evidenced by the rating agencies and areas of improvement in taking longer term views on the environment and social.
We're committed to show Fortuna is a strong ESG performance.
Next slide please.
On slide eight of the presentation.
We share our key safety performance indicators, we present kpis for us at 12 months rolling average to better represent trends.
Our trend of improvement over last year's was truncated by the challenges imposed by Covid.
Particularly on the second half of 2020.
In the last months of the year, we experienced a spike in total recordable incidents and lost time injuries.
Covid restrictions, particularly at the San Jose mine and startup of operations have been data explained it for performance high rotation of personnel due to the.
Covid.
Contact tracing.
<unk>.
Incidents so.
Suspect cases, and in our ability to mobilize experienced operators and supervisors for Dina due to the closing of the borders to foreigners weighted heavily on these results and cash.
Sure that's for the start of 2021, we're seeing material improvements in performance for many middle mind.
While some challenges remain a ton per se.
Yeah.
Yes.
With respect to production for the quarter silver production was down against the comparable quarter as a result of lower grades for the San Jose mine, 17% lower grades.
Angle.
That's up 100% due to the contribution of first.
Gold.
Production from the data.
Next slide please.
For the year.
Silver production was down 19%, mainly driven by the 50 for their use of suspension of production at San Jose and the impact of lower grades.
Growth was up 10% over the back of their contribution to corruption as I mentioned in the fourth quarter.
Next slide please.
Sales.
In the fourth quarter silver to silver and gold had an almost equal contribution to sales of 40% to 45% and we capture in our sales and margins the benefit of increased prices for both silver and gold we sold silver in the quarter at a price of $24 40.
Per ounce and gold at a price of 1860 for lawyers.
Yes.
Sales in the quarter jumped 50% for $103 million for EBITDA jumped 48% to $45 million and our adjusted net income Jim.
111% to $23 million for.
Or <unk> 12 per share.
Next slide please.
For the year.
We reported sales of $280 million.
And a very healthy EBITDA of $112 million with a margin of 40%.
Our costs were.
Were impacted from the all in sustaining perspective from the lower production.
Silver at the San Jose Mine again, as a result from the shutdown and lower grades.
Our cable net.
Or cut costs were impacted also by.
Yeah, the equivalency ratios with base metals.
Next slide please.
Okay.
We have.
Included.
In 2020 capital intensive phase.
That we had embarked on for the last three years.
The construction of <unk>.
Over.
And.
We are in the commissioning and ramp up phase.
And for.
Our capex budgets are expected are trending now and are within the balance of our sustainability investment at all three sites.
We are re energizing also exploration.
Looking forward and we provided D C and we shared this in our <unk>.
Items, we are reenergizing our budgets from.
On exploration we have.
Traditionally been investing.
Up until 2017, Brooklyn rugby for percent of sales.
On exploration.
Im having budget drilling meterage.
Always in excess of 30000 meters.
Uh huh.
In 2020, our exploration budget was a low $8 million.
We drilled eight 8000 sorry.
<unk> drilling Meterage was a low 8000 meters.
And ER.
As a percent as a percentage of sales for investment in exploration was under 2% of sales.
For 2021.
We are taking our exploration budgets buckeye gain.
To a level of her own for four 5% of sales in drilling Meterage is being expanded index.
In excess of 40000 meters a year that is the kind of meterage and exploration investment we need to not only replenish.
Serves resources, but also expand them so in 2021.
Operations is a topical issue.
For us.
And you.
You're going to see expanded investment on exploration now that the capital intensity phase of even better construction needs to be high.
Next slide please.
Okay.
With respect to ore.
Activities in Linda.
As by way of update as at the end of February.
Ore mining.
Need operations data.
Our operating and delivering according to design capacity.
Our ADR plant has been now for several months operating.
At designed capacity, taking debt 400 cubic meters per hour.
A pregnant solution.
And achieving a cold extractions.
And the range of 90%.
Primary and secondary crushing is sick.
Which as of the end of.
<unk>.
February are operating in 67% of design capacity and this month of March we're already seeing.
Solid days are.
At between 85.
Within 85% of design capacity.
The HPE era agglomeration and stacking.
We are at 23% of design capacity to hear the limiting factor has been the stacking system.
Yeah.
We have been a.
Dealing with the operating.
And Hum.
Issues at the stacking system.
But I can advance that are already in and visa early days of March we're seeing the performance.
Improving and closer solid day closer to 30, 40% of design capacity.
So all in all we're seeing a strong trend in the right.
Direction.
And.
We are expecting it was continued to to expect.
Material advances on the ramp up this month of March as we implemented several measures and corrective measurements measures from on a lot of other components of the process right.
But most importantly, all of these things are issues, we can address them.
Correct.
But.
For our models for our reserve models are conciliating extremely well against production and our leaching kinetics gold leaching kinetics are performing according towards these high end parameters and expectations. Non so those are two things you want to highlight and also the fact that as I had mentioned before we're trending in there.
Right direction.
With respect to our expectations for ramp up we're still slightly behind somewhat behind on the stacking, but were seeing solid improvement in March.
Slide please.
I think this is the.
And.
Oh my.
On the presentation and I'll pass it onto Luis who will review the highlights for the financial results.
Yeah.
Yeah.
Yes. Thank you.
So.
On slide.
18.
Yes, that's been discussed already by quarter here, we had a strong fourth quarter driven by.
Higher sales of 50% over Q4 2019, our margins were cigna.
Significantly up reflected in adjusted EBITDA and adjusted net income increases of 78 and 100% respectively.
Net income however was slightly below Q4, 2019 will lead to certain items below the operating income line contributing to a higher net income in the comparative period of 2019, specifically in 2019, we recorded $11 million of investment.
Gaming and the large.
For tax credit related to foreign currency fluctuations.
Slide 19 please.
So.
The quarter, the highest impact on our sales came from those higher metal prices silver in particular, which was up 41%.
As for had mentioned that contribution in a pretty narrow which $23 million for the door up for a total increase in sales of $34 5 million.
The company elected to early adopt.
For an amendment to fix.
16.
Which deal with.
Bruce Keith before intended use of assets.
Under this amended standard the company is required to recognize sales proceeds and related costs of items for those in the income statement, while the company is preparing the asset for its intended use.
Next slide please slide training.
So.
Reinforcing I read of what Colgate has caused when looking at our comparative segmented results you guys up significantly quarter over quarter are both for San Jose in my mind, it's reflecting the positive impact of higher metal prices for our stringent Scott.
Our production cash cost at both operations in Q4 remains at similar levels as the comparative quarter.
It's overall within the ranges, we expect for 2021 based on our guidance all in sustaining cost at San Jose was $14 $50 credit.
Equivalent ounce of silver for the quarter and $12 for the year again based on guidance provided for 2021, we expect all in sustaining costs to remain within the within a similar range of $12 14 $50.
Per equivalent ounce of silver in 2020 one.
Slide 21 please.
Okay.
Yes.
On slide 21, we provide some additional detail on our reportedly NATO results.
Oh gosh.
That's disclosed $23 million of sales contribution of cash cost of sales shown.
And the table correspond to a full operating cost in the quarter.
The only item of in country costs and expenses that is not yet reflected in net income statement in Q4 is the oxide.
G&A of $1 $1 million.
Total net all contributed to our consolidated EBITDA was $11 $3 million in the quarter.
Also relevant to note, we have incurred extra duties of 8%.
Nominal range over sales, which we expect to continue into 2020 one.
Next slide please slide 22.
Yes here we show.
That would be the breakdown for general and administration line item out of our financial statements for the quarter and a year for the full year corporate and in country G&A expenses are below 2019.
The increase in total DNA, both for the quarter on the year is related to higher share based payments related mainly to the performance of our share price.
As shown on the slide as well, we recorded foreign exchange loss for the quarter or for $10 million and $12 $2 million for the year driver of these losses has been discussed.
From the pad.
Is that construction receivable in Argentina.
In 2019, we incurred a loss of 10 minutes or similar magnitude, which.
Cumulatively in the two year period, except for approximately $24 million. This however.
Partially mitigated by investment gain until call it $3 $3 million in 2020.
Around $10 million in 2019, so cumulatively the net loss.
It's more in the range of $10 million.
It is worth noting that we have already started recovering in EAP with its current lump sum amount of $10 million collected in January screening for anyone.
And the next slide please slide 23.
Yes.
Here, we provide a summary of our balance sheet and liquidity position on the bar graph on the left at the end of Q4 'twenty 'twenty. Our total liquidity came down slightly with respect to Q3, So we're $150 million bank facility.
Scale down to $120 million was contractually scheduled.
Worth, noting our net debt position is shown at the bottom improved from 56 million.
Q3 to $34 million in Q4.
With that I will hand, it back to you Carlos Thank you.
Okay.
Thank you.
Thank you Luis we would now like to turn the call over to any questions that you may have.
Certainly.
And gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time, we do ask that while posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.
Once again, if you have any questions or comments. Please press star one on your phone please.
Please hold while we poll for questions.
Your first question is coming from Don Demarco Your line is live.
Thanks, so much for taking my call Jorge so.
You mentioned, the stacking system I read that as that 23% in February.
Performance, increasing to 30% to 40% in March.
Well, what kind of level would you be comfortable with in order to meet the guidance in 2021.
Thank you for the question on it is it is.
Important to stress something that we tried to describe well in the MBNA, which is that we are in.
Bypassing.
Whatever John inch or extract ounces were not placing with the stacking.
System, we're making up with the placing ore on the leach pad with trucks.
No.
So what we are tracking is the amount of extract of allowances that we placed on the leach pad.
Every month right.
So we are meeting the extra total analysis on the Leach pad.
Per our guidance.
And.
The issue is that are the ounces that we place on the with the stacking system.
We expect our gold extraction to be in the range of 70, 578% over 90 days.
With the ounces that we placed with trucks as they are a bypass that cash.
Comes from.
We draw from the secondary crusher stockpile.
Good day 34 millimeter crush.
And for that kind of crushed material debt P 80 at 70 for many meters.
Gold extraction is more in the range of 50%.
Over 90 days and over time, we will.
And achieve a higher extraction rate.
This 75, but certainly higher than 50 overtime, so we're having to place more ounces.
To meet the guidance no more ounces in the leach pad to meet the guidance. So that's how we're managing this as a temporary solution while the.
We get the stacking system.
Up to two the sign right.
Yeah.
What I said during the call is that in these early day so March.
We are already seeing and expecting for <unk>.
For me.
Between 30, and 40% we had yesterday a good day with 9000 tonnes per day, which is more like 50%.
Of capacity.
Non.
We are dealing with.
Yeah.
Some.
Some oh.
Let me share my notes.
Issues with the stocking is mainly.
Good day, the overland conveyor braking system.
Our functions and all of them.
That generate massive spillage is basically they automate from system over the edge.
Stacking system is not communicating broker to at all times.
Maybe more.
More testing, what's happening and we get it working and then we have a miscommunication.
Other than the BTC for them.
Work in zinc.
Thanks, we get massive spillages from one of these large conveyor belts right that takes up to five hours to clean up and get it a private day.
So nothing that we.
And just to complement here I believe that our for example, this is a good example of how Covid is impacting us.
I believe this issue could be resolved in a matter of days or weeks.
Yeah.
And ours.
The issue is that we do not have the benefit of having the vendor technicians on site working with our operators.
<unk> right.
We're making good use of technology.
But he is not the same so a lot of these issues, we were improving getting the other.
Mechanical availability.
But I mean things that they really could take hours or they used a result end up taking days or weeks, because we just don't have it.
The something that.
Youll see in a normal day, which is the or ramp up vendor technicians.
Onsite with you right in this case are superior.
From the Argentinian borders are remain largely close to foreigners. So we cannot give the technicians in country.
Yeah.
Okay, Okay, well thanks for that.
Also on stacking, but may be shifting over to grade I recall around mid October.
The initial grant that you had stock for a little bit below like maybe 83 grams per ton or something you.
You had previously maybe been targeting one above one but now I see that.
Great Dark green.
For the for the full year are one gram per tonne, which implies there's been an increase in the stack rate are you comfortable with.
The grade that you're stacking right now and is it in line with your expectations and plan.
Yeah, Great is in line with our plan.
Absolutely okay.
Okay, and then finally on capital allocation priorities, you have you're generating a lot of free cash flow. In 2021, you mentioned, you'll have expanded investment on exploration.
It is a dividend something that youre thinking about at this point or repaying the debt what are your capital allocation priorities beyond investment.
Exploration.
Yes.
Thanks for the question because it allows me to point something here, we have three priorities one is for.
First we believe at times like these companies.
When companies need to strengthen the balance sheet right. These are the opportunities we have indeed in cycles like these lakes other cycles like we're now to strengthen the balance sheet. So we view it.
Having putting together a fortress balance sheet is a priority for us right. So that's number even though our debt to EBITDA is slow and whatnot.
<unk>.
We you will be seeing this.
Ensuring that we come out of this leg over this cycle the very strong balance sheet second is exploration.
Investment.
I noticed that day.
England.
Good day.
My intervention before.
Moving short changing or investments in exploration for.
Three years for patients as well.
We were prioritizing capital allocation tool in their construction.
We have been drilling.
2020, only 8000 meters not enough to replenish deal with depletion other mines and expand the resource.
We got those drilling meters is up north of 42000 meters.
We're drilling on at all sites.
Have a new initiatives outside of brownfields, we're gonna be drill testing this year as well in Mexico.
<unk> peanut.
And last is.
Returning to shareholders.
Yes, that's something that we will consider the best way to return to shareholders and we will evaluate those options.
Against other opportunities for growth that we might identify.
Hum.
But certainly.
Returning capital to shareholders.
In the way of dividends or special leave you then or.
Or other means.
These are something that the board is considering norbert.
Okay.
That answers my question. Thank you for that.
Thank you. Your next question is coming from James Huntington. Your line is live.
Yeah, Hi, guys. Thanks for taking my questions.
Just for a follow up from.
The previous questions on the stacking what sort.
The timeline just at your current rights.
You could be ramped up on the stacking system.
Yeah, it's unfortunate COVID-19, obviously restricting you a fair bit there, but do you think this would be like a two month process or sort of you you'll be like 90% of the way by the end of March just a bit more color there. Thanks.
Yes.
That's a tricky question to answer.
We have.
Or problems.
Our.
With the stacking.
Our isolated right now to the braking system to the communications from the braking system turnout domain from issue.
Hum.
We've been training a lot of things on solving problems and improving and now we're left with this one.
And if you know how these works.
You know you all of us other than.
Get it right and you get a bump on on performance.
And.
We're already starting to see better these.
And all other time, and we can see significant jumping and performance.
Uh huh.
You know, we're almost at a mid March so.
It's still our expectation to get within the 85 per cent in all performance in March.
But if not we will see a spillage into April right.
But it's difficult for me to gauge I believe the issues are issues at their salt in matters of days or weeks, what we have in front of us with the stacking.
For the leash should be so in a matter of days or weeks not months alright.
Alright.
Because of the nature of the program, where we are with the solution also so my best assessment would be days or weeks.
To get these programs and it's just these one problem right.
And these are battling with and we have been battling with for.
For for a few weeks now right. So I believe we're on the on the last leg of a solution for them.
[laughter].
Okay. Thank you very much for that and then just if you could give us some color on the.
Now we are up.
<unk> for the plant.
And sort of what how that ramp up is going there as well.
Yes.
The <unk> plant is not critical path for us is important we need the surplus, but we don't needed to produce goals we don't.
The ramping day, one right so the Cooper.
Content in the pregnant solution to now is manageable.
Yeah.
We have a movie the south plant in February was up 37% of design capacity, but.
We have reallocated our resources.
From the maintenance team and operations team.
Two of the areas that are.
Key or critical path for Gulf production basically the stocking in the crushing.
And.
So we have deep prioritize.
Airports around the chart, we will come back to it once we got that stacking system running where we need it.
<unk>.
The hard plant we've.
We've been running at around 37% up to 40% of design capacity.
And it's been operating efficiently adult rates, we've been able to precipitate you know 80 90 per cent of incorporating solutions. So the the chemistry of this arc Lindsey is performing.
I will say in exceeding our expectations.
And it's just a matter of increasing flow.
Now we have a nishu with the corporate filter.
We're waiting for some.
Yeah.
For small repair on the corporate share.
Corporate filter.
Yeah.
And Ah, but again, we have prioritized resources to critical path, which is basically the stacking and primary and secondary crushing.
Yeah.
Okay. Thank you very much for that and then just one last modeling question for.
Mind may for.
For depreciation net Linda right could you guide us what you're sort of expecting this year. Unlike a dollar per ounce for Linda and if possible a more longer term value.
Luis you want to give a bump to this one.
[noise].
Yes, I heard you're asking for depreciation dollars per ounce I.
We're using the units of production method based on ounces produced I don't have unfortunately, a number.
In my head that I can share with you, but what we should expect a square depreciating based.
From a non says.
Brown's basis is of course is the user.
Depreciation tracking of course, the net production nalco swelled our life of mine right.
So that will be in sync with with.
Loosening of Oh.
For income 12 day life of mine.
Yeah, I'm, sorry, I can't give you a number right now so I don't I.
I don't have it for me.
Okay. Thank you very much yeah. That's all from me then thank you.
Thank you. Your next question is coming from Adrian Day. Your line is live.
Yeah.
Thank you.
My question was partially been answered already in one of your previous answers, but I I wanted to ask you about the exploration a little bit more.
In the foreseeable future is it all exploration at or close to mine site or are there any you know new new.
Hi, I'm, just you're looking at.
Yes.
Yeah.
Kind of a veto vary from Adrian.
Yeah.
So at the San Jose mine.
In Mexico, and we have an aggressive program or drilling program.
In the immediate to B C D of the mine and both on the north the boundary of existing resources on the deep extensions to the south.
We have identified also for kilometers sorry 400.
Graham did you east from the main ore shoot it to parallel structures, one but to the hosts our resources is the Victoria vein, where we have them know mining up to now and then a bit further east from Victoria and we have also a couple of interesting drill intercepts of another.
Metres line structure.
And with grades in the range of 135 grams.
For a couple of meters.
So our we have a lot of drilling allocated to that.
In addition.
This non Jose mine, we are exploring.
The other b are there areas from.
All other veins within the system.
But I would consider all of these in the within the reach of Brownfields and also the opportunity that we are successful we could.
We have the opportunity to truck or two.
Ring for San Jose a meal.
We signed this year a.
2020, and an agreement with the room, we have option on the Eagle Blanco appropriately.
Some 15 20 kilometers due east from San Jose to.
An exciting exploration project.
With some exciting drill results that meet a follow up.
And that information is public and you can look at it.
So you know all of these is within our plans for 2021 in the case of Cardiome of mine.
Do you have a also a similar scenario drilling within.
For the extensions of known mineralization and also.
Stepping out into new areas of testing new ideas in the vein system that hasn't been so prolonged deep for you know over 500 years later.
So in the case of moving data.
Yeah.
We're not doing and near mine near resource drilling, where we are stepping out to the ITC I decided go porphyry, we're gonna be drilling there. These first couple of years.
Eddie.
Sadly it's a.
Gulfport free interest, it's a second Gulfport free center.
Inappropriate.
There always is the one that we're bringing we have brought into production and now decided is located three and a half kilometres per.
From lean data.
So well within trucking.
In distance there is a well identify the gold porphyry system. There that has received drilling throughout the years.
We believe there is potential as evidenced by past drilling.
For near surface high grade satellite.
Perhaps.
Not to beat it but as we have our infrastructure. So close we don't need a stand alone. So.
These satellites could contribute one 5 million 10 million 20 million times.
Great to see Mexico point for corn five grams.
Yeah.
It goes we believe <unk> seven from drilling would suggest so we're gonna be testing in dose potential satellites.
I'm sorry.
No so.
Apart from that we have drilling.
In new project.
Mexico and Argentina.
And exploration, we have option brokered piece and we're advancing work and work advances.
We have firm commitments on those projects will be discussing them publicly right.
Okay.
Super Thank you.
Thank you.
Thank you. Your next question is coming from Justin Stevens Your line is live.
Thanks, guys.
Most of what I wanted to get this would've been covered off.
I was just mostly wondering.
How much are you guys seeing so far.
Atlanta.
Flip side of that would be how's the cyanide consumption relative to what you are looking for.
Sorry, I didn't hear you all debt will you were asking about a day buffer content.
Or places that are far outlived thereof, and the cyanide consumption as well.
As you know.
Cooper is copper grades are trending along with the what we see in our resource we serve model or 1.1% copper.
What we're seeing.
In the case of Linda what makes little Avaya will technically viable.
Is the fact that.
Yeah.
95 per cent of that copper.
That's 0.1% copper that we see in the lean there a porphyry.
He is in the form of chalcopyrite.
So only.
5% of corporate.
Chalcopyrite leaches them, they're a cyanide solution. So it doesn't eat cyanide like gold or copper mineral forms like golf course sign we're not you know.
70% of copper will leach.
In the mineral form of Calico calico assign chalcocite calculus.
Covid.
Right.
For born right now those are the cyanide eaters.
In the case of a little you know we have chalcopyrite.
And the grade.
Of copper is within our expectations for 0.1.
Our cyanide consumption right now, it's slightly below half a day.
0.5 kilos per ton.
Yeah.
So.
You know, it's tracking well within what we expect and the copper that we're seeing in the pregnant solution.
Sure. It's also would mean would we would expect our with diesel leaching kinetics. So we're seeing copper in the range of four to 500 ppm in the pregnant solution. So we're managing that with our.
Cyanide.
And you.
You know the SAARC blended.
Although he's running a 30, 40% of design capacity is doing the work right.
Yeah, no that's great.
And then the only other question I had was you guys have timing for your plan annual reserve and resource update.
Yes, we'll be releasing reserves resource.
Sources.
In the coming weeks.
Great Alright.
Alright, that's it for me thanks.
Thank you there are no further questions in the queue at this time.
Okay.
Yeah.
Yeah.
Thank you Matthew if there are no further questions.
I would like to thank everyone for listening to today's earnings call and we look forward to you joining us next quarter, how about good day.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone line for at this time and have a wonderful day. Thank you for your participation.