Q2 2021 SSR Mining Inc Earnings Call
Price and good afternoon, and good morning to you all and thanks for joining today.
I'm going to speak first to the fantastic second quarter performance.
The results have reinforced the quality and consistency of our operations as we reported a number of significant production milestones.
At <unk>, despite a planned maintenance shutdown in quarter, 2 we set a record for tonnes processed in the sulfide plant.
<unk> were reported record material moved for both the quarter and the half year period, while at Seabee and Puna, we delivered record quarterly and half of your middle production.
In quarter, 2 we produce 200000 gold equivalent ounces at an all in sustaining costs of $961 per ounce for.
For the first half we produced 396000 gold equivalent ounces at an all in sustaining costs of $983 per ounce.
With another strong quarter. It is clearly all 4 of our operations have been and continue to perform very well.
This is especially pleasing given we have avoided the common risk associated with post merger of deterioration in operating performance as teams adjusted new ladies and priorities for <unk>.
<unk> is now almost 1 year post merger and with full quarters of really strong performance, we have clearly delivered and more.
This is a fantastic effort and a credit to everyone across the business.
We are far from done and currently have a significant focus on the many potential growth opportunities within our portfolio.
This operational strength has translated into strong cash generation as we delivered a $100 million in free cash flow in the second quarter of $177 million in the first half, which is supporting our peer leading capital returns program.
In addition to our quarterly base dividend, we announced the meaningful NCI program of up to $150 million in April this year, allowing us to purchase up to 10 million shares.
I am pleased to report that we have been executing and gained share in CIB in the quarter, we purchased 4 million shares for cancellation, returning $70 million to our shareholders.
1 of the key disciplines, we've implemented at SSR is to continually review and assess our asset portfolio.
As part of our ongoing reviews, we determined the sustaining royalty portfolio was non core and wasn't will recognize nor valued by the market.
We successfully ran a process leading to an accretive sale with total proceeds of $100 million that we announced last week.
Net valuation well exceeded the consensus value assigned to the royalty portfolio and showcases. Another example of our efforts to deliver positive returns to our shareholders.
From a growth perspective, a robust balance sheet continues to allow us to invest in value, adding capital projects, while advancing our large organic development and exploration portfolio.
We have a number of exploration updates coming from across the business in the coming months, which will allow you to follow our progress.
<unk> will give you a flavor of the ease a little lighter.
The primary purpose of our development and exploration program is to establish our ability to sustain 7 to 800000 ounces of gold production for at least 10 years.
Turning to the next slide on ESG.
Pleasingly, we continue to see positive health and safety training at our operations, reflecting our focus and efforts to improve the wellbeing of our employees contractors and communities.
We are accomplishing these improvements despite pervasive challenges with COVID-19 globally.
Our mitigation efforts have enabled us to avoid any COVID-19 related shutdowns at our operations this year.
Our commitment to our communities and the environment remains front of mind as we continue to deliver against our priorities outlined in our 2020 sustainability report. This included a commitment to begin establishing an action plan to achieve net zero greenhouse gas emissions by 2050.
We have also begun to improve disclosures on climate and water management by responding to the carbon disclosure project and aligning our reporting with the requirements of the task force on climate related financial disclosures.
We are proud of our continuous efforts to improve in our approach to ESG and will continue to not only report on our progress, but look for new ways to further our presence as a leading and progressive the G steward.
Moving on to the next slide.
As I noted our first half production of 396000 gold equivalent ounces at the all in sustaining cost of $993 per ounce compares favorably to our full year guidance as shown on the slide.
With an excellent first half the outlook for the remainder of the year has us well on track to meet our guidance ranges.
From a production perspective, our larger operations of triple or of Marigold are currently tracking to the midpoint of guidance.
The tuna and CB, we experienced better than expected half 1 largely as a result of the excellent operating results and 1 off benefits, which sue will discuss later.
From a cost perspective, our all in sustaining cost is tracking to the low end of guidance.
We are investing in several several high return growth opportunities across our business, including capital projects like the triple of flotation circuit exploration drilling and investing in work to complete a number of technical reports all designed to improve both the longevity and value of SSR.
Steve will touch on a number of these shortly.
This is moving on to the next slide on a quarterly highlights.
We've already covered some of the quarterly highlights so I'm not going to spend much time on the slide Allison its shoe will provide a more detailed overview on a minute. However, a few of the highlights that are relevant to consider for this quarter.
Our safety performance continues to improve and operationally, we're hitting records across the business.
Financially the strong operating results delivered an adjusted EPS of <unk> 46 per share.
We Janet generated a $100 million in free cash flow with the lion's share was used to support our <unk> dividend payments and debt servicing and.
And after all of the cash outflows, we will still able to maintain a net cash position of over $500 million providing.
Providing us with the flexibility to advance our large organic pipeline with.
I'll turn the call out of it to Allison, who will discuss our financial performance in more detail on slide number 7.
Thanks, Rod and Hello, everyone.
With another outstanding quarter, and I'm pleased to speak of the results shown on slide 7.
Continuing our track record of success following last year's monetary we produced 199673 gold equivalent ounces during the quarter and sold 201500 for gold equivalent ounces for a total of $377 million in revenue for Q2.
Delivering a solid first half of the year with $743 million in revenue.
Attributable net income for the quarter with $54 million or 25 cents per share and adjusted attributable net income was 101 million with adjusted attributable earnings per share of <unk> 46 day.
In the first 6 months of the year attributable net income was 107 million of <unk> 49 per share and adjusted attributable net income with $203 million or 93.
Per share.
On the right side of the slide I'd like to provide some commentary on a reported 46.
And adjusted earnings per share that is calculated based on our definition of adjusted attributable net income.
Per share.
Start with our attributable net income of 25 cents per share and then make adjustments to exclude the after tax impact of specific items that are not reflected of the company's ongoing operations.
Each of those items as outlined in the waterfall chart on the right of the slide with the largest of the adjustment for <unk> due to our recent announcement of the sale of our noncore royalty portfolio for 100 million, which remained accretive to our NAV against analyst consensus estimate.
And and adjustment for 11.
Related to the amortization of the fair value as a result of the adjustment to bump up the value of inventory and mineral properties at sharply at the time of acquisition.
Additionally, I'd also like to highlight our review on inflationary pressures across the business, particularly given our ability to manage through those headwinds in the first half of 2021 for.
First we find net inflation in both Turkey, and Argentina, which accounts for slightly more than half of our 2021 production guidance is largely offset by the associated currency devaluation in the country.
His proven true for us historically, and we anticipate that it will continue into the future.
Across the business, we have been able to manage other cost pressures through our continuous improvement practices that we have ramped up since the closing of the merger last year.
He will touch on these initiatives in more detail later on but our refreshed approach towards supply chain and procurement practices is placing us in a position to better absorb any potential inflationary increases as we are focused on value extraction and cost savings.
Turning to slide 8 we can talk about SSR balance sheet strength.
SSR mining closed the quarter with $908 million in consolidated cash reinforcing our balance sheet strength as well as our significant liquidity.
As noted previously effectively 100% of our quarterly free cash flow with put towards share repurchases dividend payments and debt servicing we remain well positioned to continue our capital allocation policy fully funding our portfolio of organic growth opportunities, while maintaining our significant capital return.
To shareholders.
Additionally, within the quarter, we amended our existing undrawn revolving credit facility, increasing the size of the facility from 75 million to $200 million with an additional 100 million of accordion feature over a 4 year tenor.
Our net cash to EBITDA ratio is <unk> 6 times again, demonstrating our resolve and placing us in the top quartile of our peer group.
As we look ahead, we will remain active on our share buyback program maximizing purchases where possible.
Subsequent to the quarters end, we purchased an additional 2 million shares for cancellation.
Our share repurchases now total $6 million of the allowable 10 million shares under the CIB clearly demonstrating our commitment to deliver capital returns to our shareholders.
In addition to the CIB, we again declared of <unk> dividend per share during Q2.
On slide 9 we can talk more about ssr's position as the free cash flow leader and our capital return.
Our continued track record of success has bolstered our cash flow with operating cash flows out of $149 million and free cash flow of $100 million during the quarter.
We have aggressively repurchased shares through our share repurchase program buying back $70 million of shares during the quarter and an additional 2 million shares following quarter end in July.
Highlights for us so far this year include $177 million on free cash flow in the first half as well as the $125 million in capital returned to shareholders in the year to date period.
We anticipate that our cash flows for the second half of the year will remain strong and we will be equally weighted to the first half of the year.
We are confident that our capital allocation program provides attractive yield for our shareholders.
Our mining of free cash flow yield of 10, 9% is well above the peer group at 4.2% and.
In Ssrs capital return yield of 3.5% for Europe for the year to date period is already above the projected mid cap yield of 3.4% for the entire year.
We are looking forward to continuing our track record and delivering consistent financial and operational results.
Our capital allocation priorities include investing in growth.
For returning cash to shareholders and maintaining balance sheet strength.
The combination of of leading returns and significant free cash flow generation differentiate the SSR mining.
We'll continue to execute on our priorities, both financially and operationally as we move through 2021.
We will walk you through the operational highlights starting on page 10.
Thank you Allison first off.
On the never ending drive to improve AI chips in the us through the business continues with all sorts of showing marked improvement in performance for the first half of this year our teams more than half of the recordable injury rate when compared to 2020.
With support from third party experts, we kicked off the program aimed at the mapping our path to achieving the new commitments might in a recent sustainability report, including net zero of greenhouse gas emissions by 2015.
Rollout of our new integrated ESG management and information systems is gaining momentum and all of the sites for now completing GAAP assessments against the new standards and the building the compliance plans on use of standards are aligned to meet or exceed contemporary expectations and industry standards.
Recognizing the organizations and performance are writing was upgraded from double B.
In the latest <unk> ESG report the.
Operations of doing a great job of managing Covid.
Each site doing side with the time pilot approach vaccination rates of our workforce has been good to excellent with the 70% having had at least 1 shot already.
Is it 76% <unk>, 41% of 67% and true Sherpa, an impressive 85% vaccinated.
Moving on to operations and growth the second quarter continued the performance trend from Q1 with strong production numbers and good cost control.
We manage the things that are in our control and so the sorts of focus on operational excellence, which includes productivity improvement and cost control.
The <unk> program is in 2 streams of the continuous improvement strain, which is the foundation of reliable and optimize production and cost control as part of the continuous improvement work. We are currently completing on the opportunities by salon across all of the sites. This will identify on <unk> opportunities and squeeze more out of our existing assets.
The opportunities of then being built into our plans and budgets for the rest of the 'twenty to 'twenty, 1 and 'twenty 2.
The other part of the <unk> and innovation strength, which is looking to step change performance of the off price and supply application of division of disruptive technologies. Our current focus in the spices on the digital opportunity such as <unk> II and III, we've already had some wins in this area and so of stepping up the resourcing. Additionally, we are on <unk>.
Moving our resourcing in processes and the supply chain space to ensure that we continue to optimize our working capital the input cost position.
Moving on to the thoughts and share for on slide 11.
The chair for sulfide plant continued to prices well above design rates in half 1 was another record of half year throughput of.
For the autoclave the shutdown of all of the client number 1 that had been delayed from Q1 was completed as planned with no surprises there are no for the scheduled major autoclave shutdowns this year the.
Of the flotation plant construction and operational readiness activities have now been completed on time and on budget. The fantastic achievement by the project team. Despite the impulse of Covid is testament to a herculean effort by some individuals.
Individuals and the company's ability to deliver projects.
We are still busy exploring in the chair for the district with some good results. We currently have 7 drill rigs Inc.
<unk> and plan to issue an exploration update for the project later this month, so keeping all of that for that 1.
In order of magnitude studies, the chair for Copa <unk> is underway.
The study aims to leverage the considerable copper driven mineral value within and immediately adjacent to the reserve and resource shells for the current mine plan does not exploit it.
The study is positive we plan for request funding and move the project to a pre feasibility study to be incorporated in the chair for the district Technical report for <unk> 'twenty 1.
Outage will move to the reserve case and be the significant feature of the updated CD on page 21 Technical report, which we aim to complete and relies for Q1 next year.
Let's move to see move to Marigold on slide 12.
Mon times for another record in gold production was within 250 ounces of the previous half year record.
The incident with the warmer weather the new commensurately piece of 7000 shovels dropped in reliability on the quarter. Following on what was very good performance in Q1, we fully expect these issues to be resolved.
Where to drill on the dewatering bowls continued in the water type of drawdown rates look good.
Overall, the project is expected to be completed on time.
Stripping of the 5 in pits to the north of the property advanced well with easier than expected mining of the first benches.
Exploration at Marigold is mostly focused around the existing pits and is ramping up of Trenton Canyon overall, we drilled this side of the 20000 made us for the quarter of second soil sampling.
Graham covering areas not previously tested at Trenton Canyon also need completion with.
We plan to provide an exploration update released for the grade of Marigold project before the end of this year.
Moving to slide 13.
The <unk> this quarter was outstanding delivering.
Record quarter and half year of production and unexpected very high grade zone was encountered at the bottom of the same toward the lower non design at the edge of the resource model mine design is being modified to reestablish access to allow further exploration testing of the area and to regain access to the mining operations, which we attach.
We're getting for early next year.
The CVR operation is more on rate limited throughput with slides for the <unk> plant during the periods of very high grade feed so not to overload the circuits with gold which is of great problem to have.
As a result, there has been a buildup of the mill feedstock call, which will be drawn down through the rest of 2021, using the plant catch up capacity.
Pleasingly underlying mine production metrics have also been steadily improving at seabee with the number of the continuous improvement projects bearing fruit.
Operations within the operating Santorum on continued drilling out of the gap hanging wall and the same toy haynesville targets looking to pull those into reserves and results and into the mine schedules in the near term drilling also continued at the distal exploration sites of Mac, North, Georgia and Fisher.
Additionally, we commenced drilling at Emmis, our other active Saskatchewan exploration Scott will provide an update on this in due course.
And so I think for everyone for look forward to later this quarter, we will release, an exploration update for <unk>, which will include work on the Fisher properties.
Moving on to slide 14, Kona continue to step it up delivering production records yet again.
Good production and cost control drove the all in sustaining costs down to $14, an ounce were under $14 an ounce.
The change over the iron ore haulage from the mind plan started in April and the performance has been much better than expectation, helping to reduce operating costs planning for planar is now being redone assuming bid them on performance higher throughput.
Right and a lower cost base.
Let's move on to slide 15.
For the exploration part on pretty much covered off everything in here with the sight discussions, but I just wanted to add a couple of comments on the on some of the other projects we had boots on the ground in St. Louis in Peru some of.
The same from the Denver in Vancouver by fixed operation group on mapping and reinterpreting the area at copper Hill and <unk>.
Part of started a sum of drilling program copper Hill is in the Black Sea region of Turkey and from 2020, we released exploration resorts results for.
For the property for 8 holes of number of which had very clean of high grade copper mineralization and the ships close to the surface, including 41 made as the $2.6 the same Copa.
This current copper hill of drilling campaign is aimed at stepping out to test the extent of mineralization initial observations of very encouraging NII them to get the season's drill results to you before the end of the year, So somebody else to look forward to.
So wrapping it up it was a good quarter for the business and the operations and growth teams. Thank you very much and back to you Rob.
Thanks, Sue and thanks Allison losses.
Look forward to.
To summarize the first half of 2021 has clearly demonstrated the strength of our business and our commitment to shareholder returns since the merger we have delivered record productivity across the portfolio reinforcing SSR mining appeal as a leading mid tier gold producer.
For the robust portfolio of organic growth opportunities, we expect to provide a number of exploration updates to the market through the second half of this year.
It is our belief that our strong free cash flow peer leading capital of returns and significant growth Optionality will support a premium valuation more of appropriately reflect the and the quality of our assets and our people.
So with that I will now pass the line of it to the operator to take questions. You may have thank you Lucy.
Thank you for.
We'll now begin the question and answer session join.
During the question Keith You May Press Star then 1 on your telephone keypad Youll hear it time acknowledging your request.
If you are using a speakerphone please pick up your handset the full pricing any case.
To withdraw your question. Please press Star then 2.
Your first question today comes from Tyler Langton. Please go ahead.
Yes, good afternoon write off and then Stuart and thanks for taking my questions.
I guess just to start any of you touched on the inflation and mentioned that I guess, the sort of FX was kind of offsetting the pressure that at Puna on show player, but I guess in terms of Marigold and Seabee could you talk about I guess sort of for what items youre seeing inflation and sort of how much and then just a little bit more details on how your offset.
And if you have any.
Thank you for any contracts.
Or hedges that might be helping as well.
Hey, Tyler Thanks for the question. This is Allison so yes.
Yes, we do.
Do have.
As we stated we do have sort of offsetting inflation and.
And at <unk>, and Turkey, offsetting inflation and currency devaluation and at Seabee and Marigold.
<unk> of the part debt to really touched on in terms of continuous improvement and the activities that we're working on in the business.
And that has really helped us to not see as much inflation.
True that that process and then we do have an active hedge program within the organization and we are constantly reevaluating.
Those hedges are meaningful for the organization and we will continue to do that.
Okay. Thanks, and then I guess without the tubular.
Hey, I guess versus my numbers it looks like the growth capex on sustaining capex was kind of a little bit.
Hello.
Sort of the annualized for the for the full year should that pick up in the second half and then I think in the MD&A. There was also the mentioned about waiting for sort of permits for the flotation circuit and then I guess stage for for the Italian but none of that's related to the capex at all but just sort of any details there would be helpful.
All of those touch on the permits first of all on and then I'll pass out of as June.
Allison the talk specifically about some of the other questions, but yes.
Yes, we look we are waiting for the the final permit.
Chip look for the.
For the on flotation circuit.
We've had a long track record of success in the country of getting getting permits.
We of all the process doesn't always the quite of our needs.
We've always been able to get them get them in the past, it's been more perverse definitely with with Covid impacting.
Impacting the the.
The governments and the.
The the push to get things done, but we know that the permits are now awaiting final C. J on we expect them soon so.
And that should that should come here pretty shortly so just on the other questions I'll, let sue and Allison talk about it.
Taylor I'll touch on the Capex questions that you have and we do anticipate that.
The year of.
We will.
What we're anticipating what we were originally planning for and what we are anticipating we will spend so.
Let's see that maybe uptick a little bit as the year progresses.
I think we've pretty much covered on off part of our expectation is that we'll spend the exploration with as well, but we planned.
On the capital of the Cat with finalizing all of the.
The income and capital, we think we've ticked and tied everything for the flotation plant now and we wont get any surprises out of that.
Alright, great. Thanks, so much.
Thank you.
Your next question comes from the Cosmos <unk> with CIBC. Please go ahead.
Thanks, Rod Alison Stewart and good job of Alex first off congrats on a very strong Q2.
Maybe my first question is also on share player here.
<unk>.
Well on permitting I, just wanted to get a sense.
It sounds like Theres been a delay, but I guess my question is 2 parts number 1 it sounds like you've already started the water runs and also some of the combination of.
Commissioning work.
The floatation so could you maybe talk about what permitting are still needed and.
When should we start.
Getting a bit worried in terms of timing and then the second part is in terms of the stage or tailings as you said, there's been a slight delay as well could you talk about the capacity right now tailings capacity with stage 3 and when would you need that stage for capacity.
Yes.
Cause I'm going to pass on what I would assume side of it was like I think for parts of that question. So for.
Okay.
Thanks, Paul.
We had to.
With regards to the.
The flotation plant.
Whiting for the update of the EIA for share Pla and then after that we have.
On operating payment, which normally takes a couple of weeks to get up to get the EIA.
Our understanding.
We believe that the EIA has passed all of the bureaucratic processes through the department and is now on the ministerial off of Starwood Hope Thats not too long on block everywhere everything is being closed down.
Covid and and then we've just had.
The big religious holiday of the bottom holidays, everything sort of pretty much stopped so at whiting to the table to get back up the speed coming out of that.
Hopefully it will come soon.
We're putting on mitigation process.
Dealing with the blends that we've got in front of us.
And the best way that we can with the material that we've got.
And we believe that.
At a stretch we will make will make it into the guidance, even if we didn't get the payment. So we're pretty confident that we'll get the.
It'll be it'll be coming soon we hope.
What was the other part of the question was very long.
Yes, sorry, I'll keep my next questions to 1 with regards.
Yes with regards to the tilings.
We've got all of the requirements placed on that.
At this.
At this stage.
And as the small pace of land in the next stage, which will require which we require.
To get for.
For the next phase and Thats required I'd have to go on check my notes because I think it's somewhat about August 23.
Thats required but so.
Working to ensure that we've got some good Tom.
The always busy working to get those well in front of what we need.
Okay.
I guess the other part of my question was how.
How much tailings capacity do you have right now and when would you need the capacity coming from stage for.
As I said not until Inc.
The 2023, where all of my head.
Okay.
Got it first of all.
We are building constantly building.
The timing for them.
In front of us.
We're well ahead of.
Okay of course, maybe.
Maybe switching gears, a little bit coming back to CV.
I noticed that.
And all of the the head grade in the quarter was spectacular of $13, 1.9 gram per tonne.
I guess the first part of my question is is the.
The sustainable and part 2 is.
It sounds like.
It was a positive grade surprised you as 1 of the sand to our lower 9.
Could you talk about was it a positive grade reconciliation to your block model and if it was.
How much of that.
How about how positive was it.
Yes.
So we had positive reconciliation not just in that area, but in them on.
We do get the used from time to time in the mine. It was very positive and it was on the age at the very bottom of.
The results. So it is positive and that we're drilling out and we will probably get to extend out beyond what's in the current reserve.
How much that will be yet because that'll be the next question.
Until we finish the billing side.
We are putting in.
On a draw of now 2 we've already for the few holes into it but we're putting in a draw of now to get some more drilling into it and then we're gaining.
Putting in another draw.
Drive to gain access to get back in and do some more mining next year, but debt.
They were areas of it that was a spectacular growth generally that came out of it at 15 Gram a tonne.
Okay and could you maybe comment on the potential grade for the second half of course CB or on that.
Not at this time.
No I wouldn't want to speculate.
Okay.
And then the.
1 last question maybe on Marigold here.
Again.
Q2 grades for good first half grades were good.
What should we expect for a potentially in the second half.
And then on that.
Net.
I believe.
It went to work.
It's always tricky with the heap leaches well it looks like the first half recovery was about 81%.
If you are expecting potentially lower grades on the second half could that impact.
<unk> as well.
Yes, you are right about the recoveries.
The way.
We're running we're running 3 heaps of the moment of <unk>.
<unk> links on the breakthroughs, Brian anywhere from 52.4 days.
Depending on which we're expecting in <unk> from <unk>.
But overall the grade for this half will be the same as it was for the first half.
Great.
And then maybe 1 last question to kind of wrap it up by I don't want to beat the dead horse, but.
The the new eyewear it seems to be the new effort these days and Thats inflation.
In terms of inflation, you talked about currency impact offsetting inflation. We've also heard from some other companies. It seems like it of labor there is cost pressures energy those cost pressures on.
Other input costs gross cost pressures.
Could you maybe comment on the different areas. What are you seeing the most potential cost pressures.
Some of the different operations here as of labor or is it <unk>.
The energy cost what are we talking about.
So we are seeing some cost pressures in relation to diesel.
And.
We have not necessarily experienced some of the same labor pressures that.
Others have talked about that.
Debt, we will be on.
Continuing to reevaluate that some of our other input costs.
We are currently actually in the process of renegotiating for cyanide and things at a few of our site. So we have not.
We have not experienced some of the same inflationary pressures that some of the other.
<unk>.
That's good to hear.
Thanks again those of all my questions and congrats again on a very good Q2.
Thanks, Chris.
Thank you.
Your next question comes from IV Habib Scotiabank. Please go ahead.
Thanks, Operator, hi, Ron and team and congrats on all the.
Solid quarter.
Lot of my questions have been answered already but just maybe.
Just wanted to see.
In regards to Covid.
In Turkey, any any sort of impact at job growth that youre seeing and any kind of mitigate the mitigation factors that youre putting in place.
Hi, chip who've done an outstanding effort in managing the Turkey shelf systems actually very good as well for anyone that's been there.
We have oscillation process coming on site. So we have almost.
The immediate turnaround with our own medical stop coming in the Sot testing people for.
A PCR test and also on antibody test.
If you carry enough antibodies.
<unk>.
<unk> PCI clear.
You can access all of it immediately out of the once you go into quarantine for waste and then we retest you before you get back on the site and they still running that protocol. Despite the fact that there are 85% immunized.
Both of the work force and the.
And the contractors on site.
They've really done an outstanding and the outstanding effort and.
<unk> had managed it.
Very well.
That's great day here and just kind of I think the causes of kind of pushing towards looking at how CB is looking in the second half of all kind of Jefferies.
Forwarding and Marigold, you said kind of medical is going to be flattish I.
I would say just based on the grade going into the second half.
In terms of what you produce good day.
It's about 395000 ounces top end of guidance is.
All of Us to let's say, Inc.
8.8.
800000 ounces.
FCB does get some good outperformance and children of against the application going do you expect to kind of.
Over that guidance level.
Yes.
Is that why youre being conservative to see how these things perform before you.
Start talking about achieving.
Over and above your guidance.
No I think I think as we sort of said in the script so of eyes.
For the larger operations, which is both marigold on triple aware tracking more towards the midpoint of guidance and while tuner and say they are certainly showing well in the first half of it doesn't necessarily translate that we're going to go through the through the top so.
Quarter 3 times, yet again.
To give us some positive surprises there and obviously, we will reassess of but at this stage, where we're saying we'll be in that sort of of that guidance range that we originally put out.
Got it and just 1 just from.
Moving into on on the exploration side.
Said the day, we are expecting a couple of updates in terms of exploration of.
The next month or so.
<unk> is the focus still near mine exploration looking at additional satellite beds and kind of improving.
The.
The confidence in reserves and resources at Seabee.
Yes.
So our main focuses is nemo on in order for us the available of converge at Seabee, it's centrally in the GAAP hanging rules because they of the next tool source, but we're also stepping out to extend those.
1 of the things that we want to do is and we're putting more resources into it extend our horizon of time horizon of savings. So that we can plan on the longer term rather than having a sort of of rolling short.
Because the belief is everybody that has anything to do with <unk> is that we've got a much bigger.
The resource there, it's just that we haven't defined it.
And if we have a better understanding of the extent of the mineralization.
And then we can we can plan for expansion of the mine and sort of longer longer capital on look at the moment through different paradigm, so thats pretty exciting certainly a share plus.
We've got the work that we're doing on.
On the copper mineralization that sits in and around the existing resource and reserve shelves. This was never valued in.
Yeah.
The value of the oil coming to the plant because of the moment, we don't recover even though of the plant was designed.
To be able to tack on a copper recovery circuit of the back in when we're looking at better guidance through the different paradigm of what are we what happens if we recover that copper coming in several of the flotation plant perhaps producing.
Part of our concentrate which within the supplement the feed going to the autoclave and push our overall production up and produce copper from the circuit. So that's pretty exciting.
She is coming out shortly.
We got into share in other.
Sure.
I think it's just under 200 holes. The both holds the infill holes in the results.
Bringing up the confidence levels and the results from the reserve for outage.
And then also step out holes, where we're extending outside of what was previously published for the for the results day.
And then.
We were already working on it.
That data will.
Included in the work that we do and we are updating the technical report for the Chifley District Master plan as we call it and we'll roll that out.
At the beginning of next year. So what you saw the extra million ounces and almost.
$500 million in NPV should become go into reserves grow a bit.
And then make it into the base case of the valuation for the business. So we've got quite a lot of work going on at the moment pushing that out and of course of all of the work going around the marigold as well so we've got but.
Immediately adjacent to the current workings and then.
Really picking up what we're doing down of Trenton Canyon as well.
The stuff.
That's it for me the Rod and again, congrats on the great quarter.
Thanks, Jim.
Thank you.
The next question comes from Mike Parkin with National Bank. Please go ahead.
Hey, guys congrats on the quarter.
Just a couple of follow up questions with Trenton Canyon, where does that stand with regards to permits.
The fact that it's an old historic site.
Of those permits still intact or would you have to go through.
Permitting phase to restart operations there.
So there are some permits there.
But what we're doing at the moment is these rigs.
Re exploring the areas well side.
It will depend on what we found and what we want to develop and what we need to.
What we decided we wanted to do day on this kind of.
I can't answer your question of the moment of smoke.
Okay.
And then with regards to Marigold.
That's helpful.
Study back from 2018 showed there is of production dip.
For 2020 for 2025, but since then you've picked up a couple of little pieces of land within the main.
On a mine plan the area.
Wells.
Ongoing exploration success, and then a little bit of of change here with the water table, which pushed the some of the higher grade tonnes into it seems 2022.2023.
So.
Do you guys see of potential where that dip could be softened if not eliminated.
So the the answer is yes.
Are you going to issue of 3 year guidance at the end of this year, which will we will give our updated loss from on plan across both of these that you are asking about.
Yes.
We've started planning to do the work to do an updated technical report.
And we will call of the.
Marigold.
The strict master plan, which takes into account.
All of the things that we think we're going to do to develop marigold was a whole property.
Sure.
Okay.
The other thing we said margin. This is this is a common theme across the portfolio while Paul.
The chip is relevant because we we.
We put out of the.
The loss of Tech report.
Just last year.
The other operations also had no debt refresh so that's part of the investment into those take reports the.
2 to refresh ourselves and also an oil side of the market obviously about.
Both of the assets actually look like rather than sort of talking about stuff that sort of it for 5 years old.
Alright.
And with carefully so that update from the last update we got we had some high grade ounces Ed at the backend of the mine plan just because of the category.
And now with this app update coming those would be coming into reserve, but it sounds like so we could have those properly sequence moves forward ahead of stockpile processing is that correct to assume.
Yes of course.
How it would be scheduled the only raised on life side of the backend was.
We didn't.
I wanted to displace.
The reserve material.
With the material from outage some of which was the only the third category because it upsets the regulators.
It would naturally be sequenced into the plant as soon as soon as it was available.
Okay.
And then final question for me with CEB.
Getting some great surprise does that from what I recall, you actually have a massive amount of gold that.
Deposit that comes through.
Free gold and comes out.
And the gravity circuit does the.
The grade.
Conciliation tend to sit with that time of type of mineralization, where it's better free gold than expected, maybe a negative effect or.
Is it something else that.
And of that surprises each of the upside when that happens.
We do get surprises to the upside.
<unk> entities it is difficult to predict on as all the market.
Find hosted.
Gold deposits a reconciliation.
And the plant is the lesson.
Very high the recoveries of was very high.
But the reconciliation tends to be.
Positive and we tend to get positive surprises from time to time.
Naturally when when you go through and do the work for the resource estimation.
If you have unusual highs I, usually get smoothed out so as not to overestimate.
Okay. Okay. That's it for me guys. Thanks very much.
On.
Thank you.
We are showing no further questions at this time. This does conclude our question and answer session today.
Thank you for participating you may now disconnect your lines.
Yes.
[music].