Q2 2021 SSR Mining Inc Earnings Call
Sustaining 7 to 800000 ounces of gold production for at least 10 years.
So turning to the next slide on ESG.
Pleasingly, we continue to see positive health and safety trends.
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 of our 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 and 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 ESG 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 of perspective, our larger operations of Jetblue 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.
Since 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 and she 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 cents per share.
Janet generated $100 million in free cash flow with the lion's share was used to support our <unk> dividend payment 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.
Of that I'll turn the call over to Alison 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 merger, we produced 199673 gold equivalent ounces during the quarter.
<unk> 201504 gold equivalent ounces for a total of $377 million and revenue from 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 cents.
In the first 6 months of the year attributable net income with the 107 million of 49 per share and adjusted attributable net income was 203 million or <unk> 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 per share and then make adjustment to exclude the after tax impact of specific items that are not reflective 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> do.
Due to our recent announcement of the sale of our noncore royalty portfolio for 100 million, which remained accretive to our NAV.
The analysts' consensus estimate.
And an adjustment for <unk> 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.
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 those countries. This has 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.
We 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 of extraction and cost savings.
Turning to slide 8 we can talk about ssrs 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 of 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 returns 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.
Of 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 returns.
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 in 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.
<unk> of 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 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.
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.
Who will walk you through the operational highlights starting on page 10.
Thank you Allison first off.
On the never ending drive to improve chesney of through the business continues with all sorts of showing marked improvement in performance for the first half of this year at the same as 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 mapping our path to achieving the new commitments made in the recent sustainability report, including net zero greenhouse gas emissions by 2015.
Rollout of our new integrated ESG management and information systems is gaining momentum and all of the sorts of now completing GAAP assessments against the new standards and the building their compliance plans on <unk> standards are aligned to meet or exceed contemporary expectations and industry standards.
Recognizing the organization's effort and performance are writing was upgraded from double B.
And the lightest and CSR ESG report the.
Operations of doing a great job of managing Covid each.
Each site doing side with the signed pilot approach vaccination rates of our workforce of being good to excellent without the 70% of having had at least 1 shot already.
Is it 76% marigold, 41% of 67% and true chipper and impressive 84% vaccinated.
Moving on the 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 the productivity improvement and cost control.
The only program is in 2 streams of continuous improvement stream, which is the foundation of reliable and optimize production and cost control as part of the continuous improvement work. We are currently completing of 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 operations by application of diversion of disruptive technologies. Our current focus in the spices on the digital opportunity such as II and III, we've already had some wins in this area and so of stepping up the resourcing. Additionally, we are on.
Proving 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 on chip on slide 11.
The tariff of sulfide plant continued to prices well above the Zoe on rights and half 1 was another record of half year throughput of.
The order clients the shutdown of autoclave number 1 that had been delayed from Q1 was completed as planned and with no surprises there are no for the scheduled major autoclave shutdowns this year the.
Of the flotation plant construction and authorize us channel readiness activities have now being 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 companys ability to deliver projects.
We are still busy exploring in the chair of the district with some good results. We currently have 7 drill rigs Inc.
Rich and plan to issue an exploration update for the project light of this month, so keep an eye on for that 1.
On 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 shelves. The the current mine plan does not exploit if the.
The study is positive we plan to request funding and move the project to a pre feasibility study to be incorporated in the chair of the district Technical report CD on page 21.
Outage will move to the reserve case and be the significant feature of the updated <unk> 'twenty, 1 technical report, which we aim to complete and released by Q1 next year.
Let's move to move to Marigold on slide 12.
Montage from another record in gold production was within 250 ounces of the previous half year record.
The incident with the warmer weather the new commenced the PC 7000, shovels dropped and reliability in 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 of inputs to the north of the property advanced well with easier than expected mining of the first benches extra.
The exploration at Marigold is mostly focused around the existing pits and is ramping up of Trenton Canyon overall, we drilled just over 20000 meters for the quarter of <unk>.
Soil sampling.
Graham covering areas not previously tested of Trenton Canyon also need completion, we plan to provide an exploration update released for the grade of Marigold project before the end of this year.
2 slots at the same <unk>.
This quarter was outstanding delivering.
The record quarter and half year of production and unexpected very high grade zone was encountered at the bottom of the same towards 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 the regain access to the mining operations, which.
We are targeting for early next year.
The CVR operation is margin rate limited throughput was slowed for the save the plant during the periods of very high grade feed so I'm not the I've a lot of 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 the 2021 using the plant catch up capacity.
<unk> underlying mine production metrics have also been steadily improving and CB with a number of the continuous improvement projects bearing fruit.
Exploration within the operating Santorum on continued drilling out of the gap hanging wall and the same toy haynesville targets looking to pull these into reserves and the results and into the mine schedules in the near term drilling also continued at the distal exploration saw sides of Mac, North, Georgia and Fisher.
Additionally, we commenced drilling on <unk>, our other active Saskatchewan exploration slide I will provide an update on this and <unk> cost.
And suddenly for everyone to look forward to later this quarter, we will release, an exploration update for <unk>, which will include work on the fish of properties.
Moving on to slide 14, Corona continue to step it up delivering production records yet again good.
Good production and cost control drove the all in sustaining cost down to $14, an ounce were under $14 an ounce.
On the changeover of iron ore haulage from the mind plan started in April and the performance has been much better than expectation, helping to reduce operating cost planning for China is now being redone, assuming better margin performance higher throughput rates.
And the lower cost base.
Let's move on to slide 15.
So the exploration pipeline I 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 and thank to the basic exploration group of mapping and reinterpreting the area at <unk>.
The Hill and our partner started of summit drilling program Copper Hill is in the Black Sea region of Turkey.
On April 2020, we released the exploration resorts results 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 at 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.
Even 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.
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's appeal as a leading mid tier gold producer.
With 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.
Net our strong free cash flow peer leading capital of returns and significant growth Optionality will support a premium valuation more appropriately, reflecting 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 might have thank you Lucy.
Thank you.
We'll now begin the question and answer session join.
During the question Keith You May Press Star then 1 on your telephone keypad.
You will hear it time acknowledging your request.
If you are using a speakerphone please pick up your handset before pressing 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 Thanks for taking my questions.
And if you have any.
Thanks any contracts.
Or hedges that might be helping as well.
Hey, Tyler Thanks for the question. This is Allison so yes.
Yes, we do have.
As we stated we do have sort of offsetting inflation, and tuna and sharply and Turkey offsetting inflation on to currency devaluation and at Seabee and Marigold.
That's where the part that really touched on in terms of continuous improvement and the activities that we're working on in the business.
<unk> has really helped us to not see as much inflation.
Through 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.
Maybe I guess versus my numbers it looks like the growth.
Opex and sustaining Capex was kind of a little.
Hello.
Sort of the annualized for the for the full year should that pick up in the second half of them. Then I think in the MD&A. There is also as I mentioned about waiting for sort of permits for the flotation circuit and then I guess stage for from the tailings I don't know if thats related to the Capex at all but just sort of any details there would be helpful.
All of those touch on the permit first of all on and then I'll pass out of as June.
Most of the talk specifically about some of the other questions but.
Yes, well look we are waiting for the the final permit.
Chappell of for the.
For the on flotation circuit.
We've had a long track record of success in the country of getting getting permits.
We have all of the process doesn't always equate on needs.
We've always been able to get them get them in the past, it's been more perverse definitely with with Covid impacting.
The impacting the the.
The government in and 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 that.
That should that should come here pretty shortly so just on the other questions I'll, let sue and Allison talk about it.
Tyler I'll touch on the Capex questions that you have and we do anticipate that.
The year of.
<unk>.
We will.
And what were anticipating or 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 target side of our expectations. It will spin the exploration work as well, but we planned the.
The capital of the Cat with finalizing all of the.
The income and capital, we think we've ticked and tied everything from the flotation plant now and we wont get any surprises out of that.
Alright, great. Thanks, so much.
Thank you.
The next question comes from the Cosmos <unk> with CIBC. Please go ahead.
Thanks, Rod Allison.
And good job of Alex first off congrats on a very strong Q2.
Maybe my first question is also on carefully here.
On.
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 culmination.
The 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 has been a slight delay as well could you talk about the capacity right now tailings capacity with stage III and when would you need that stage or capacity.
Okay.
Cause I'm going to pass on what I would assume side of it was luck I think full parts of that question.
Okay.
Thanks Ross.
Hi, guys.
With regards to the.
The flotation plant.
Waiting for the update of the EIA for <unk> and then after that we have.
On operating payment, which normally takes a couple of weeks to get up 3 of 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 side, we'd hope, it's not too long on lock everywhere everything is being closed down.
Covid and and then we've just had.
The big religious holiday of the ballroom holidays, everything sort of pretty much stopped so of whiting to the table to get back up the speed coming out of that.
So 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 we 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.
Yes.
What was the other part of the question was very long.
Sorry, I'll keep my next questions to 1 with regards.
Yes with regards to the tiling so.
We've got all of the requirements.
The <unk>.
Stage.
There is a small piece of land in the next stage, which we required which we require.
To get.
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 basso.
Working to ensure that we've got some good Tom.
Honestly always busy working to get those well in front of what we need.
Yes.
I guess the other part of my question was.
How much tailings capacity do you have right now and when would you need the capacity coming from stage 4.
As I said not until.
Into 2023, Oh go ahead, sorry, okay.
Got it from elsewhere.
We're building we're constantly building.
The timing of <unk>.
In front of us and we will.
We're well ahead of.
Okay of course, 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 there.
The sustainable and part 2 is.
It sounds like it.
It was a positive grade surprised you as well on the sand toward lower 9.
Could you talk about was it positive grade reconciliation to your block model and if it was.
How much of that.
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 of the very bottom of.
The results. So it is positive in that we're drilling out and we will probably get to extend out beyond what's in the cash reserve.
How much that will be yet because it'll be in next question.
We finished the billing side.
We are putting in.
On a drive now to we've already put a 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 it on another draw.
Draw to gain access to get back in and do some more mining next year, but that there were areas of it that was 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.
Not at this time.
No I wouldn't want to speculate.
Yes.
And then the.
1 last question maybe on Marigold here.
Again.
Q2 grades were good of course have grades were good.
What should we expect for potentially the second half.
And then on that.
Net.
I believe.
I 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, well you're right about the recoveries.
Hum.
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 are expecting and leaching from side.
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.
On 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 of those cost pressures other input cost those cost pressures.
Could you maybe comment on of different areas. What are you seeing the most potential cost pressures.
Some of your different operations here as of labor or is it.
The energy cost what are we talking about.
So we are seeing some cost pressures in relation to diesel.
And we have not.
<unk> experienced some of the same labor pressures that others have talked about.
That we will be on.
Continuing to reevaluate that some of our other input cost.
Are currently actually in the process of renegotiating for cyanide and things of that at a few of our sites. So we have not.
We have not experienced some of the same inflationary pressures that some of our other.
The companies are seeing.
That's good to hear.
Thanks again those are all of my questions and congrats again on a very good Q2.
Thanks cost.
Thank you.
Your next question comes from Ivs Habib with Scotiabank. Please go ahead.
Thanks, Operator, hi, Ron and team and congrats on a.
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 agile growth that youre seeing and any kind of mitigating mitigation factors that youre putting in place.
<unk> done on outstanding.
In managing in the Turkish Health systems actually is very good as well for anyone that's been there.
We have oscillation process coming on thoughts we have almost the.
Immediate turnaround with their own medical staff coming in the Sot testing people for.
Of PCR test and also on antibody test.
You carry enough of antibodies.
And your PCI clear you can access all of it immediately otherwise you go into quarantine for wafer then we retest you before you get back on the site and they still running that protocol. Despite the fact that variety of 5% immunized across both of the work force and the.
And the contractors on site.
They've really done an outstanding and the outstanding effort.
And had managed it.
Very well.
That's great day here and just kind of I think the Cosmo kind of.
Pushing towards.
Looking at how CB is looking in the second half of all kind of job price unfold.
<unk>.
And Marigold, you said kind of medical is going to be flattish I would say just based on the grade going into the second half.
In terms of what you produce.
It's about 395000 ounces top end of guidance is.
All of Us to let's say, Inc.
The 8.8.
800000 ounces.
If CB does get some good outperformance and children of gets the flotation going do you expect to kind of.
Over that guidance level.
Yes.
Is that why you're 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 sit in the script so of ice.
For the the larger operations, which is both marigold and shape of the way tracking more towards the midpoint of guidance and while tuner and segue of assembly 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 tons yet again.
To give us some positive surprises there and obviously, we will reassess the 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 moving into on on the exploration side, you said that day, we expecting couple of updates in terms of exploration over the next month or so.
Is the focus.
Focus still near mine exploration looking at additional satellite pits and kind of improving.
On the the.
In reserves and resources on television.
Yes.
But.
Our main focuses is nemo on in order for us the available to convert at Seabee, It's centrally in the GAAP hanging rules because they of the next tool source, but we're also still stepping out to extend the eyes.
1 of the things that we want to do is and we're putting more resources into it.
Extend al Horizon at time horizon of savings so that we can plan on the longer term rather than having a sort of of rolling short.
The reserve because of the belief is everybody that has anything to do with CB is that we've got a much bigger.
The source the 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 long the capital and look at the mine through different paradigm, so thats pretty exciting certainly of chip.
We've got the work that we're doing on.
On the copper mineralization that sits in and around the existing resource and reserve shows.
This was never valued in.
Yeah.
The value of the oil coming to the plant because at the moment, we don't recover even though the plant was designed to.
To be able to tack on a copper recovery circuit of the backing but we're looking at that of guidance through a different paradigm of what are we what happens if we recover that copper coming in so with the flotation plant.
Perhaps producing.
Part of our concentrate which within the supplement the feed going to the autoclave and pushout of overall production up and produce copper from the circuit, so thats pretty exciting outages coming out shortly.
We got into the share another.
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 outage.
And then also step out holes, where we're extending outside of what was previously published for the for the resource the.
And then.
We were already working on it.
Is that data will be included in the work that we do on we're 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.
<unk>.
$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.
Pushing that out.
Of course of all of the west going around Marigold as well so we've got.
Immediately adjacent to the current workings and then.
Really picking up what we're doing down of Trenton Canyon as well.
Okay.
Thanks.
The.
That's it from the Rod.
Again, congrats on the great quarter.
Thanks Louis.
Thank you.
Your 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 dose.
It's an old historic site are those permits still intact or would you have to go through a per.
Moving phase to restart operations there.
So there are some permits there.
But what we're doing at the moment is.
Re exploring the areas wells side.
It will depend on what we find and what we want to develop and what we need to.
What we decided we wanted to do day on this kind of answer your question of the moment of insulin.
Okay.
And then with regards to Marigold.
As a whole the law.
Ross study back from 2018 showed there is of production dip in 2024 and 2025, but since then.
<unk> picked up a couple of little pieces of land within the main kind.
The mine plan the area.
As well as.
The ongoing exploration success, and then a little bit of of change here at the water table, which pushed the some of the higher grade.
On saving into it seems.
22.2023.
So the.
Do you guys see of potential where that dip could be softened if not eliminated.
So the the answer is yes, we do.
Kind of 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.
We've started planning to do the work to do an updated technical report.
I will call of the.
Marigold.
District, Master plan, which takes into account.
All of the things that we think we're going to do to develop may regardless of whole property.
Yes.
Okay, so that any of the other thing.
On the other thing we said market on this as this is a common theme across the portfolio of well.
Multiple is relevant because we we put out the.
The loss of Tech report.
Just last year.
The other operations also I know that refresh so thats part of the investment into those take reports.
2 to refresh ourselves and also an oil side of the market obviously about.
What the assets actually the local right rather than sort of talking about stuff that sort of 4.5 years old.
Alright.
And with carefully so that update from the last update we got we had some high grade ounces at the backend of the mine plan just because of the category.
Sat and now with this 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 cash.
Of course.
How it would be scheduled the only raised the nice set of the backend was.
We didn't.
I wanted to displace.
Reserve material with.
On the material from outage some of which was on 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 from me, where CEB, you're getting some great surprise the thought from what I recall, you actually have a massive amount of gold at that the.
Deposit that comes through as free Golden comes out and the gravity circuit does the.
The grade.
Grade reconciliation tend to sit.
With that type of mineralization, where it's better free gold than expected, maybe a negative effect or the.
Is it something else that kind of surprised to see each of the upside when that happens.
We do get some pauses to the Epsilon.
<unk> entities it is difficult to predict on as all of the marketing.
The <unk> hosted.
Gold deposits.
A reconciliation in the plant.
Very high the rig.
Coverage of what is very high.
But the reconciliation tends to be a whole lot.
Positive and we tend to get positive surprises from time to time.
Naturally when when you go through and do the work from the resource estimation.
If you have unusual highs I, usually get smoothed out so it's not the IRS Tonight.
Okay. Okay. That's it from 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.
Yeah.
[music].