Q3 2021 SSR Mining Inc Earnings Call
This call is being recorded at this time for opening remarks, and introductions I would like to turn the call over it to Alex hijack from SSR mining.
Thank you operator, and Hello, everyone. Thank you for joining us it's our money third quarter of 2021 conference call.
During which will provide an update on their business and a review of our financial performance.
Our financial statements and management's discussion and analysis has been filed on SEDAR Edgar.
And are also available on our website.
To accompany article there isn't online webcast and you will find information to access the webcast in our news release relating to this call.
Please note that all figures discussed during the call or in U S dollars unless otherwise indicated.
All references to cash cost and on sustaining cost per payable ounce of Middle School.
Well, we will be making forward looking statements today. So please read the disclosures and the relevant documents.
Joining us on the call today are Rodney until President and CEO, Alison White C F O and Stewart Beckman C O O.
Now I'd like to turn the call over to Rod for opening remarks.
Thanks, Alex in good afternoon, good morning to you all and thanks for joining us today.
Regardless speaks a Sony a strong third quarter performance. Once again, we are performing at a high level and sitting quarterly overriding records across the portfolio.
These operational malls does contribute contribute it to the goat equivalent product.
Gold equivalent production of 197000 ounces.
Cold at all and sustaining cost of a thousand and $6 per ounce.
You said iced tea right. We have produced 519 83000 gold equivalent ounces at long sustaining cost of $990 per ounce.
Given the strong gauged I production and it cost performance, we alluring Owens sustaining.
Costco items to a thousand to a thousand and $40 per ounce.
The fact that we were able to accomplish he said standing cost performance admits the well documented industry cost pressures is a testament to the efforts of out seems to live on a number of cost saving initiatives. This year.
With respect to production we remain on track to deliver against they are 722, 800000 goat equivalent announce gone, it's Ryan jetties tracking between the midpoint in the hiring of gardens.
We're extremely pleased with the operating performance Tonight as we continue to showcase the quality of the combined operating assets.
A strong performance has directly translated to free cash flow generation is $129 million in the third quarter and 306 million in the year to date period.
Sorry.
By a machine moved on.
In the any you tonight in the year to date period.
Uh-huh.
Sorry, sorry about that we had a glitch on my computer the cash flow generation supports a capital returns program will you ever return.
Nearly $150 million to shareholders through the share repurchase since April via and so I'd be program. Additionally, al Borda proved another quarterly by Stephen and bringing you know you to die temporary tries to approximately 190 million every remain on track to deliver a total capital returns yield in excess of 5.5%.
In 2021.
In the third quarter, we and asked the parties expiration updates for bartholdi can say they expect additional exploration updates for America copper Hill and Amyx by year end.
At <unk> the.
The approval of the updated.
Included the flotation plot and in any of that in October is a C N as a significant and positive Mazda.
Looking further ahead, we expect updated technical reports from Chatbot, Mary Golden saving 20, twenty-two that incorporate a recent exploration success and provide a welcome and comprehensive refresh for us is.
Pertaining to the next slide on a S G.
<unk> is and has long bay, Nicole value and focus versus a body as it's family underpins the success of their business.
We continue to see positive health and safety transit our operations, reflecting the efforts we have applied to improving the wellbeing of our employees contractors and communities.
We have successfully navigated the pervasive challenges of Covid globally, and a mitigation efforts have enabled us to avoid any cabinet related shutdowns at our operations in 2021.
We are committed to our communities and to the environment and we continue to deliver against the priorities outlined it at 2020 sustainability report.
This will lead us.
To review and refresh our priorities as we move into 20 twenty-two, including a commitment to begin establishing an action plan to achieve net zero greenhouse gas emissions by 2050 they.
They have also begun to improve disclosures on climate and water and aligning are reporting with the requirements of the task force on climate related financial disclosures.
Moving on to slide number five.
We're proud to Chi chi's continuous efforts to improve Arab price to a J.
And while he is not a driver is Jake J efforts. We are pleased to see a result of being recognized but some of the industry's Lady yesterday research providers.
Notably SSR morning was recently upgraded to and I'm, writing body MSCI and will remain ranked in the top quartile amongst their peers by ISS.
Moving on to the next slide.
October they're excellent operational is J performance S. S. R. Mining has an established track record of adding value for our shareholders. This was most recently evidenced by the style of that an uncle royalty portfolio for $100 million, which was significantly higher than the consensus valuation of scribe to the profile.
At bar analysts.
This is a morning has a proven history of delivering complex capital projects on time and on budget as well as a creative and disciplined MNI is shining this slide.
A strategic review of the silver portfolio continues following on from the successful solitaire royalty portfolio.
With the recent operating and financial strength of tuna and.
And the broad outlook ahead, we have recently determined that tuna will remain cool too is is.
To review with the rest of the silver portfolio continues.
Moving on to slide seven.
As I noted at the diet production at 593000 gold equivalent announces compares favorably to the full year guidance.
While he to diet bowling sustaining cost of $990 per ounce has allowed us to reach you steal and sustaining Costco on us.
At the asset level, we received approval for the update a trip of AI in October and will begin ramp up of the flotation plant upon completion at the provincial level permitting by year end.
Chapel reminds on track Tomatoes for your production gardens with golf production tracking to the mid point cause the original gardens.
Marigold remains on track for full for the mid point of <unk> production God, that's while CB he's trending towards the upper end of its production got it and print out. These track on track too excited for you So production gardens.
We continue to invest in high price.
Return opportunities across our business, including capital projects like outage extra.
Exploration drilling across the business and investing in the work to complete a number of technical reports all designed to improve but the longevity and value of S. S. A.
She was going to touch on these.
All these initiatives in a minute.
[noise] and just moving on to slide I on a quarterly highlights.
We've already covenant other than mine quarterly highlights so I'm not going to spend much time elaborating here.
Elephant in shoe will provide a more detailed overview in a minute.
However, a few highlights that are relevant to consider this quarter.
I used to date safety performance remains on a positive trained.
Operationally, we continue to live to deliver records across all that for assets with five consecutive quarters of delivery since the merger clause.
Financially, we delivered and adjusted EPS 40 cents in the quarter and a rapist broadcast margins and low cost production translated to $120 million in free cash flow.
And despite the $150 million and need to die share repurchases at quarterly and our quarterly dividend payments and continued debt servicing we remain in a net cash position. If I have a $500 million that provides us with a required flexibility to advance a large organic product pipeline.
Well into the future.
So with that I'm gonna have to call over to Allison, who would discuss our financial performance and more details on sliding up annoying.
Hello, everyone.
On another positive financial corner.
Five nine.
A solid corner operationally.
186941.
During the.
Sales were impacted slightly towards the end of the corner.
Strike.
At the latest.
Concentration.
We reported.
Hell of 176299 out there for a total of $323 million in revenue for Q3.
Year to date revenues now total 1.1.
In 2021.
We continue to deliver in all aspects of our business and are proud at the cash flow and return that are generated as a result.
Attributable net income for the quarter with 57 million or 27.
Perfect and adjusted net income with 85 million.
All earnings per share at 40.
Demonstrating they continued strong operational performance.
Discipline and execution of the company's strategy.
In the first nine months of the year I.
I tried that you have on that income with 164 million or 76 cents per share and adjusted attributable net income with 288.
One dollar and 33 cents per share.
On the right side of the side I'd like to provide some commentary on a reported 40 cents.
And adjusted earnings per share that is calculated based on our definition of adjusted attributable net income for sure.
We start with our attributable net income of 27 cents per share.
Then make adjustments to exclude the after tax impact.
If they pick items that are not reflective of the company's ongoing operation.
Each of those items as outlined in the waterfall chart on the right at the fight with the largest of the adjustment for 12 cents.
Added to the amortization of fair value at.
As a result of the adjustments to inventory and mineral properties at sharp lawyer at the time of application.
Other adjustments include COVID-19 related costs and four accidents estimates along with the associated tax impact.
Jasmine.
Additionally, I'm excited to be able to provide some information on our lowered.
In the face of pervasive inflationary pressures today in 2021.
As noted earlier in the call we have lowered our 20th 21, a I S T.
Two 1000.
Two 1000 to 1000 to $1040 for gold equivalent out from 1050 to $1110 herbold equivalent out.
Incorporating a strong operational performance, which had cash caught trending to the lower end of guidance.
Today, we have managed com.
As well as demonstrated through the Q3 at the of $1006 per hour.
As we noted in our second quarter call and Ah reiterating again today, we have managed inflationary headwind in part through the continuous improvement practices that we have pushed forward since the closing of the merger in 2020.
Work is ongoing within the business and while it will continue into the future. We do anticipate at cost pressures for the U S and Canada will be higher, especially as we move forward into 2022.
Some other jurisdiction, we benefit where inflation is largely offset by currency devaluation and we expect this trend to continue.
Turning to slide 10, we can talk about ssrs continued balance sheet strength.
S. S. R mining closed the quarter with 900 million and consolidated cash we continued debt servicing quarterly dividend payments and execution of our share repurchases, bringing year to date capital return to shareholders of more than 180 million.
We remain well positioned to continue our capital allocation policy going forward fully funding our portfolio of organic growth opportunities, while maintaining our significant capital returns to shareholders.
Our net cash tape at that ratio has increased the 0.7 times, demonstrating our resolve and placing us in the top quartile of our care great.
Further our cash balance is 95% held in U S dollars.
On slide 11, we can talk more.
About ssrs position as a free cash flow leader and our capital every time.
I continued operational outperforming translated to robust cashflow in Q3 incur.
Including operating cash flow of $188 million and free cash flow of 129 million during the quarter.
Year to date, we have generated free cash flow.
That that's 300 million reinforcing our full year consensus free cash flow yield of 11% that remains well above our peers.
We have a line that free cashflow poor performance with our capital returns initiative, returning nearly 150 million to shareholders through share repurchases and an additional 33 million and year to date dividend payment.
We are well on track to end 20th 21 with a capital returns yelled at 5.8% given we are closed in Q3 with returns that already exceed 5%.
As we look ahead and just wanting twenty-two R capital allocation priorities include investing in growth returning cash to shareholders and maintaining balance sheet strength.
A combination of our leading returns and significant free cash flow generation differentiate at the time I mean.
We will continue to execute on our priority both financially and operationally as we move through the final quarter of 2021.
While we also evaluate shareholder returns for 2022.
Lastly, before I turn the call over to do I want to touch on another initiative practice are mining that will lead to changes in 2022.
Trying to slide 12.
Effective as of January 1st 20, twenty-two SSR mining will transition to U S gap reporting as a large accelerated filer under the SEC.
As a result, our full year of 2021 financial results will be released under us GAAP requirement and will be reported along with restated 2019 and 2020th financial results.
This transition will also include the restatement of existing technical report under S. K 1300 requirement. In addition to the current and I 43, one O One report.
The updated Trippler District Master plan will be released under S. K 1300 requirement and it is important to note that the F. S. K 1300 reports released from Air Golden C. D will be followed by updated Masterplan Technical report at those assets later in 2022.
What that means is that while the sharp our technical report will incorporate the totality of the exploration success up to the last release.
I shall reports for C D and medical will not represent the full value drivers that we believe exists for the properties and updates will be forthcoming as the work is completed.
We expect this transition will improve our access to you as investors and view the change as an opportunity to strengthen our already robust shareholder base.
Full review and analysis of the required changes to become and said Tyler remains ongoing and will be reported to the market as required.
She will not walk you through the operational highlight starting on page 13.
Thanks to Alison and thanks for all the late off with S. G.
It was hard to continue to operate safely H with despite COVID-19 protocols tiled today's situations email as I shouldn't rights and all of the thoughts or above that the host communities and in the eighties and nineties that chip, let's see the antenna, but remained stubbornly laws in Nevada.
Following the merger a year ago, we focused our immediate if it's an updating of ESG policies and building out are integrated ESG management and information systems in line with contemporary industry based practice is along with good old fashioned on leadership is delivering good and improving results.
As you know the work and if it and the ESG Spice neighbour Asus as we expect and drive towards the highest standards.
Are improved operational glue.
Discipline is delivering results have exceeded our expectations for improvement with recordable injury frequency rights you today that too which is about 60% of them proven on a 2020 figures.
We strongly believe that driving in delivering better performance and ESG builds a stronger more productive and profitable business.
Moving onto operations and growth of the third quarter continued performance trained from H one.
With throughput ripples at all of the mines and good pulse control.
We had reduced skull poured at that point and marigolds for the quarter, but neither of these were the result of enduring issues Mary Golf I had a problem with a strict vessels and so called is held in inventory at the end of the quarter and the delay in the E I a check.
The flight Tyson plant conditioning was delighted.
We manage the things that are in our control and so all of the sites are focused on operational excellence, which includes productivity improvement and cost control. These improvements are being built into our plans and budgets for 2022, helping to offset some of the inflationary pressures.
Moving up to the slides with chip or a slot 14.
The chair for softball plant delivered another record quarterly throughput all of the major shutdowns a complaint to 2021.
The delay of the flight plant negatively impacted on production Ah was partially offset by a hot throughput rights positive mine reconciliation and good on planning to optimize sulfide of oil presentation to the plan.
The flotation plant construction and operational readiness activities were completed on time and all budget as mentioned previously we have received the AI by the applications to the local payments and expect to receive these before the end of the year startup team is assembled and ready to go.
The flight Tyson plant allows us to take advantage of the light and capacity in the sulfide plant and increase the overall plant throughput.
It will also reduce reacted consumption and along with the unit cost of all treated.
Released exploration results of the audit shouldn't Lakota and he's very good results will be incorporated into the update a technical report, which we will issue in Q1, 22, which we will call. The chip with district Master plan 2022, abbreviated to C D and pay 22.
Outage will move to the reserve case and be the significant Fisher C. D. M. T 22, and the last technical report the outage P. I shied potential to add about a million ounces of production static 20 twenty-three exploration continues at outage and we expected the value of this project will continue to grow beyond what will be presented in stadium paid.
22.
The board approved funding progress chip Culpas say two order of magnitude study to a P. I level for inclusion into C. D and pay 22 take report.
This work aims to leverage off the considerable culpa driven mineral value within and immediately adjacent to the reserve and resource shells that the current on playing does not exploit.
You jumped to slot 50 and from there you go.
Tons for another record familiar ago gold production was delightful unscheduled violence issues that resulted in an increase of gold in this.
In particular repair work to the Aleutian vessels in the cabin stripping sick.
Increase the carbon.
On the Gulf on carbon.
The Aleutian vessels were paid light in the corner and the golf will be pulled from inventory and cute for we also had some juice fly writes on the hey plates, while some ridiculous pixilation blockages were claimed.
Where to drill and equip the watering Bulls continued in the water throw away on time drawdown rights are looking pretty good.
This will provide access to Hawaii right almost from the Mac. He paid lighter in 2022 stripping of the five in pitch to the north of the property continues and or was starting to be excess now.
We plan to provide an exploration replace for the greater Marigold property before the end of the year.
Expiration is mostly five to surround the existing pizza and is ramping up a training Kenyan.
We drove just over 24000 made it so the quota as part of a SEC filings. We are required to provide an update it escapes at 800 technical report based on out.
Using resources early in 2022. Unfortunately, this does not provide time for the development of some of the prospects. So we will I am to deliver a subsequent more comprehensive technical report lighter in 2022.
Marigold will have a strong caught up for finishing well with you and God, let's move on to slide six C D.
So you'd be continues to improve its performance, but E S J and production in the corner, we replace some games on the meals with the major plant shutdown.
The C V operation is more unlimited as a result of the plant shutdown in the plant Amman moved further ahead of the plant, adding to the plant feedstock call, which we built in queue to as a result of the Hawaii rides and Q2.
After the shutdown, we all prided it almost 40% above the average annual processing right Ah record monthly mill throughput demonstrating the significant light capacity in the plan.
With a plant taken saved from both the month and the softball for Dakota, we expect the meal will be mostly unconstrained in Q4, and a record quarterly processing through cool.
Underlying nonproduction metrics have also have been steadily improving it C. B, we have a positive view of the potential it's C D and a beavering away on improving conditions for out today and on our production continuous improvement projects across the hall saw it.
The queue to unexpected very high grade zine or was it the age of the resource model and the bottom of sand toy Larwood non side of course, we are exploring the area and working to regain access some mining operations, which we are targeting early next year.
Released in exploration update to C V. During the quarter highlighting the potential of the greatest C V property, including the Fisher 80, 20, J valley to the South drilling.
Drilling continues at Cb's into it and at the distal exploration sorts of back North judgement Fisher, our exploration team are aiming to hand over the Joker in Mac North this year to the resource development team to visit us on the resources to the extent needed to allow development. The exploration team contempt then.
Renew on generative work and the long prioritized list of targets.
Like Mary Golf C. D will be required to provide an update it a sky City 100 Technical report based on our existing resources in early 2022, which will be followed by a subsequent and more comprehensive see the technical report lighter in 2022.
We are also preparing and expiration released in this quarter for Amish or other active Saskatchewan they expiration salt.
Move to slide seven and we'll discuss tuna.
Turner is settling into quarter on quarter of delivery above about four and a half thousand ton of die right, which was above our expectation of why we started this year.
Good production and cost control is keeping the ISC down the changeover, though on a haulage for the line to the plants started and I fell in the performance has been much better than expectation, helping to further reduce our operating costs.
Planning for 10 or is now being redone, assuming this better performance and the main part throughput rights and lower cost base.
Those parameters will form the basis of the Sky City and hundred which will also be issued in February 2022.
I need to extend the life of the operations the exploration, saying who've been at Trina Reinterpreting and reanalyzing some of the targets and deposits around the current operations along with a generative soil Jia came program.
Please move to slide hiding for the expiration.
I'm not going to rotate the commentary from the previous slides to destroy your attention to a couple of points, we have considerable portfolio exploration targets in the Americas in Western Europe. We also have some small generative programs in North America, and Turkey, and remain opportunistic and receptive to imbalance.
Since the merger, we've been improving active management of the portfolio focusing on the high probability valid and valuable opportunities and shooting the others.
Nemo on projects and targets close to install infrastructure offer the fastest lowest cost development opportunities.
Getting the lion's share of exploration effort, which you can see clearly around chaplet Marigold and C V V.
That said the concurrent greenfield's exploration will work as important as a pathway to stick changed the business value.
Gimmick organically building out the portfolio Volker writing poems.
Drilling a copper hill and the Black Sea region of Turkey is delivering more encouraging results in April 2020, we released exploration results.
I'd halls, a number of which had very clean high grade Coupla mineralization intercepts close to the surface, including 40 made is at 2.6% caller.
We aim to release this year's drill results within this quarter.
Wrapping up it was another solid coded for the business and the operations and growth teams.
Thank you very much and back to Ya.
Well, thank you shoe and thank you Allison.
So to summarize 2021 has been any prissy V.
Writing the strength of our business and our commitment to shareholder returns since.
Since the merger we'd have to live in record productivity across the portfolio reinforcing SSR mornings appeal as a leading me to gold producer.
We have an exceptional portfolio organic growth opportunities and expect to provide additional exploration updates to the market through the reminder of the year.
It is our belief that a strong free cash flow P. Leading capital returns and significant growth Optionality will continue to be a K positive differentiator for it as I'm moving forward.
So with that are passed a law now to the operator to take any questions you might have.
Thank you Mr <unk>.
Now begin the question and answer session to.
To join the question queue, you May practice star.
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Pause for a moment as caller has joined Q.
Your first question is from Taylor Langton J P. Morgan please.
Please go ahead.
Yeah. Good afternoon, right Alphons do thanks for taking my question.
Maybe just to start can you talk about the levels of inflation, you know that you're seeing now kind of you know what items are coming from and then you know for 2022, you mentioned that you know that those those pressures could accelerate a little bit I guess.
They get a little bit more detail Ah, yes, it kind of to what level you kind of a.
Expect inflation to be at and then I can see if you're still sort of you know have some room.
It's all set them with sort of you know the items like continuous improvement that are benefiting you know and I guess, it's more geared towards the U S and Canada.
Yeah.
Thank you for the question certainly appreciate it and we are definitely seeing.
I'm, sorry, I said Taylor and I'm in Tyler settled policy [laughter] [laughter] I.
I'm, sorry, so anyhow.
Private primarily.
I think Canadian and inflation.
Pressures that we've seen most of those particularly in the Canadian market have come through.
And labor cost increases that we've seen within the business and we you know that the upset.
Are coming from the other area within the business in terms of our continuous improvement activities that we have primarily in the supply chain area overall and so we are anticipating that they had mentioned in 1920 and 22, we will likely see an additional costs are inflationary pressures really.
The biking area based on input.
For diesel and other large can chemicals that we use and we will continue to try and offset those in other areas, where we can that we are still working through what some of the.
It might look like for 2022.
Perfect and then I guess second question, it's you know for Rod.
And I can see that you've kind of largely completed the share buyback that says you kinda look forward could you just talk about.
Your your thoughts and preferences for capital allocation in terms of returning cash to shareholders sort of organic growth projects M&A just kind of how you how are you thinking about those right now.
[noise], Yeah look I think I think what we've been able to do this year is actually execute against what we said, which I think was an important.
Placeholder for the company to do.
There's too many times you see.
Capital returns.
Promised in the form of share buybacks that I never executed against and nothing while we have done. This year is not only continue to pay by stupid and biddle's execute against the the shape buyback program at the at the right that you've seen released that I saw so I think that was an important sorta start for us as a business.
Our price to capital allocation Holistically hasn't hasn't changed taller in terms of the way we got him to approach. It. It's a continuation of reinvesting in the business you know some of the exciting options at Chu outlined in the presentation around the growth that we have within the portfolio around all of our.
It's actually.
Would continue to be K a T.
Focus for us as well I was one of the key areas, where it will have capital allocation put too.
We will continue to look at and evaluate.
Supplementing bys dividend, which is said.
Miranda 20 cents per share per annum, and we'll look at the at the methods of supplementing that.
As the time comes around so our next jeepers, we were resetting it will have a look at whether it's Ah more of adding to the vice dividends in terms of the dividend and or a share buybacks are we haven't set that yet but in principle. The framework hasn't changed and that's why we were very clear to put it out there is a you know.
A holistic approach to capital allocation for us this are going forward, but it will feature part of it we want to be whenever you're saying as a as a company that can really do it all continue to invest in growth and return you to where shareholders.
Great. Thanks, so much.
The next question comes from Cosmos, Q with C. I B C.
Please go ahead.
Hi, Thanks, Iran, Allison's do in team and congrats on a very good Q3.
Maybe my my first question is on you know as we talked about larger silver portfolio as yours.
<unk> you have review your silver portfolio in Pune has no core I don't know how much you can share with us, but you know what criteria are you using in terms of location, you're sylvan portfolio and one I said that I get asked quite a bit of late and your and your sort of growth portfolio and yourself.
Oh here silverside as pit area and I did control F. On your M. DNA I could've I was kind of surprised that could've climbed pit area in it could you maybe give us an update on that as well.
Yeah cause the Guy I think well what we've said from day one is out across the portfolio will continue to be very disciplined around the the way that will manage the extensive holdings that we have and you know the first casualty rang for in that regard towards obviously this.
All of the royalty portfolio. We've made we've made no secret of the fact that as we go through even our exploration assets that we will we will remove things from the portfolio that don't belong.
And replace it as as time goes on in terms of the silver assets again, they were in the same category into in that review.
And we look at a number of factors in terms of the longevity in the portfolio do they belong how do they contribute to the success of vicious did I contribute for a cash flow, obviously importantly, as well as any upside potential that marty's within the within the the acid some.
[noise] selves, so I'm, having a look at tuner in particular, you know, it's obviously clearly and right now a cash harvesting night. Many years of hard work of turn that as it around to where it is today, it's been a significant outperformance for us.
The hard work of the team in 2021, and we do expect that to continue into a into a 22 and beyond so from from that perspective, it's a valuable asset it has meaningful cash contributions and we like the we like the.
The the.
The the look of the full potential of what that as it might be for us.
When we look at all the rashes locked pizzeria or as you mentioned some of the other criteria that we look at it as you are new jurisdictions tightened you step out into into into new countries saw a scale fit and to to the rest of the portfolio and obviously you know clearly Peter here is a new.
And for Us in Mexico.
In size and scale, he's probably not of the the the taught that we'd want to keep it into to the portfolio. So so part of the review that will look at is to to understand whether they would be.
A a number that we will be willing to power wise with acid in the future. So and will continue to look at that and if we have any more information as as that process unfolds will obviously kept the market informed.
Mhm of course, that's great. Thanks, a lot maybe switching gears a little bit as you mentioned 20 twenty-two it'll be fairly busy in terms of technical reports I think two sets each for a marigold and also C. B likely you know, but as you said the first set will not incorporate somebody upside potential here, but how about.
The second set you know more specifically say a marigold you know there's a lot of exploration potential you have pointed out of Trenton. Kenyan your appointment on Buffalo Valley have pointed out the millennium model and S. C V and others D Gab hanging Walters Fisher, there's Joker at this point and.
[noise] time like do you know how much of that to exploration upside.
Potentially be incorporated into your technical reports.
Hi, all ads that high School Thompson Street.
Yeah. So obviously I can't quantify cause that's what they are I guess way too early but I could give you an outline of what it is that we're looking to achieve.
Marigold, we'll be looking to pull the materials around the violent pit and the other operating tapes, where it's within the operating permitted areas into sort of the production as early as we can and then stepping up to subsequent to that.
The sort of the new millennium and those areas that were drilling out and providing some sort of indicative time on of of what we're trying to achieve there where we can actually pull them in yet but will be able to describe.
What we can.
And then out of Buffalo in Trenton Sally.
Trenton Cancun in Buffalo Valley.
We're still looking at what Liberals off.
Definition, we've got across the resources.
And with that we've got and we're obviously had drooling at the moment, our ambition is to where we can pull some of it in sort of it to pay a face level and then some of it might come in to to pay I I'd certainly be able to describe what our plans for the hall of the property.
And the intent of the the the bus development plans like we did a chip on his sort of to map the longer term.
[noise] strategies help for the properties for all of the all of the properties. Unfortunately, given the timing of the S. C C.
Will probably pull a few few between where it's close to the close to the existing resources and reserves Luckily it normally would do on an annual basis, but we won't get the big chunks at C. B it will be to get the gap hanging wall as much as possible into the reserves, where we haven't managed to do that already probably something.
Tension, we were drilling at the central heating on get the Santa of hanging will better defined and pull letting.
And then be able to start to define the story down a wall.
You know down towards vicious J career, then into the top of Fisher and then some of the other positive space.
You know, we're pretty excited about that.
We just won't get as much of the work done and completed.
By really it's the end of this year to be able to get it into a technical report for publishing and the first month or two next year.
Mhm.
Yeah for sure you know, it's been awhile since I've been to C. DS and toy Uhm can you remind me in terms of like Joker and some of those other you know exploration.
The targets are they reachable from the current decline or or do you need.
Additional infrastructure.
So I can look so I could see extension sort of on the sand taught.
So we.
We we are hoping to be able to access it from there we might need to put a decline in further down and we are still pretty early so I was still you know it's still exploration drilling we haven't really done the.
Resource definition drilling it's it just it's gonna take us a little while to be able to answer that comprehensively.
And the other thing I would say about that when you look at those results. We've only really drill goes down to about 200 meters and the experience in San toy was that the grade went up at it so.
That we see the same trend.
In in Joker in.
Magnum, but it's gonna take us a little while to find out whether that holds up on them.
Great and then maybe one last question saving the best for last you know an accounting here Alison as you mentioned, you're switching over to U S gap, maybe it's too early at this point in time, but I'm trying to figure out what are some of the key differences you is of course right now versus the U S.
And my understanding is that if worse might be more flexible and one milk one interpretation versus U S. Gab, which is more meals based I think I seem to remember that if a person is also a more balance sheet focused versus U S. Guy, which is more earnings focused and so you know I guess hopefully it doesn't take too long and then to the to the level that you can.
Can what are some of the key you know differences that we should be looking for.
We are working through our evaluation right now to understand all the different implications.
In general.
In comparison to you ask at three of the areas that we might.
Changes are in different stripping.
And then also.
She's kind of this year based compensation accounting and so we don't yet have numbers on that but when we do will be providing that out to everyone. At the same time and be sharing what that looks like that at the end of the day, we've got a lot of work to do between now and when.
Financials go out and we need a little bit more time to work.
At this point.
Okay.
Alright, so just to finish it.
You actually say, a lucky well versed on accounting standards anyway, so I might be in the wrong industry, but we will we will as soon as we've got the clarity.
And Alison in there to have done the work will come out and spend time with folks to to take them through those changes.
Oh, what whatever changes end up happening just to be sure. If I was well aware of what they are and and and what I might be to ensure everyone's on the same page moving into 2022.
Uh-huh for sure and maybe just one quick follow up in terms of you know being a S. E C. Russian registrant, and then using U S. Got do you foresee any changes in terms of how you disclose Saint non-GAAP measures and I'm just wondering if there's additional restrictions on how you can present, just say that.
Justin earning you know production guidance cost guidance or anything like that or we'll do anticipate not that not being an issue.
I do think that we're gonna have to revisit all of those items as a part of their review and we're currently working through.
That right now.
Gotcha, Okay, great those other questions. Thanks again.
The next question comes from obese Habib with Scotiabank.
Please go ahead.
Thanks, Operator high blood and this is our team and congrats on a good quarter and received the two current yay.
Just a couple of questions for me just starting off with the <unk> E. I E. Now that obviously includes the flotation. So great now from what I understand you need some additional provincial permits to start commissioning of the flotation blind are you looking to get these primates in the next couple of weeks.
And if so would you like would you look to start the plant in mid two board or we should we expect a startup and early 2022.
Yeah, Hi advice, it's it's too so we applied for the the payments immediately on getting the I I. This is sort of pretty typical you get you rely on it and then you'll have to Ah.
Apply to the local municipality to be able to operate you'll facility.
They were on saw it last week and we're expecting it imminently and our team is there ready to go. So soon as soon as we get the permit we will stop and we expect to get it some time and this quota.
We never know exactly because it's a it's a pendant with the municipality or in this case the the law.
Problems.
Thanks, so much and and in terms of you know in terms of the ramp up how <unk>. How long are you looking at the ramp up off get the plan Commission.
Yeah, it'll be it'll be.
Yeah, it'll be pretty quick it's a very simple plan. So it's just a simple flirtation plant. We've had lots of time to complete all of the water testing and have it ready.
Ready to go so you know we do have it of course, when we put things then we had him for the first quarter reduced to about 70% impact.
And we're pretty confident will come up quickly.
But you know I like always with commissioning. It's the thing that you don't expect that that always gives you a surprise so we might allowances for those things.
Sounds good good luck on that just moving on so just on.
Production side, so year to date you guys have produced approximately 583000 gold it could've been ounces essentially implying queue for production Ah 177000 ounces to achieve the midpoint of guidance now how should we look at two four compared to Q3, I mean Ah you expect expecting similar.
Ordered two three and maybe if you could just give us some color on how you expect you know the minds to go into a I'll break in two four.
We don't normally.
Break it down individually, but I'll, just give you sort of a generic terms.
And I would expect a good finish from Marigold given that we had what we had pretty coming out.
We've got.
C. B has a clear run to the end of the period has stopped falls in front of the mill, whereas normally is middle limited waiting on them on and it's not going to be riding on the mine site.
As I said earlier, we were expecting sort of production throughput the actually.
C J.
And that cheerful will be commissioning the commit.
Commissioning the.
Tyson circuit during during the period.
And have benefited a little bit from some positive reconciliation in the morning, good work by the Mod planning Kruger.
Two.
Me to get a little bit the impact on the business and then.
Sooner has been you know as I said, it's it's really settled into.
This sort of around 40 thoughts hundred ton of tie or a little bit north of that production.
And we would expect that that to continue.
Perfect and thanks for the color on that soon and just a follow up to Cosmos. This question on the Tech reports on C. D and my goal now I believe you are looking to release it through your guidance and early 2022, you know I just want to be clear.
That I believe this guidance is looking to include the new dropped her mind plan, but is it. The plan to also include Marigold and C. B plans as well or technical reports as well.
Yeah. So.
We'll issue real issue the gods will be issuing at about the same time, a slightly lighter the technical reports and obviously those those numbers for the first usually go on to the lawn to each other.
[noise], Okay perfect. So we're still.
So nice to three your gardens and saw yes dancing.
Perfect perfect. Thanks, Rob and thanks door, that's it for me.
No worries thank you.
The next question comes from Michael's tobacco with RBC capital markets.
Please go ahead.
Thanks, very much guys, so I'm going back to the balance sheet and capital allocation can you expand a bit about how you think about things.
Going forward here, maybe aside from from M&A I mean, obviously you've.
Returned a lot of cash visibility into more subject to the buyback limits, but longer term given the cash you you should be generating how're, you thinking about deploying or managing it in a very first class problem to have I guess, so should we be thinking about a higher payout or paying down more dad and does growing cash concern you at all from Ah.
Capital efficiency perspective.
So I think it's a as you said, Michael it's a fantastic problem that I have and I think.
We as we think about it we don't look at it as a problem, we actually look at it as an opportunity. So the other business clearly within that has a number of.
Newer informative.
Growth opportunities in some of these things will require us to to think about capital investments in the future New mines and you new territories in fact, that's sort of our current our.
Current districts surrounding the mind. So there's clearly there's clearly a portfolio, they're starting to come philosophy and and for us to ensure that we were kept their integrity and the balance sheet too to tackle those opportunities in the future is very important to us. The other thing that outside he shall we will assist on a yearly basis.
Like we always said the frameworks it the <unk> the capital allocation strategy.
I'd change will stay fairly consistent two or three from either yeah. We we might we might change the mix.
Of what we do in terms of other it's more dividends or almost shape aipac's I mean, some some use them we might actually even pull back if we had a a big capital allocation in front of US. We'll just go back to to the Bys dividend. So I think that it that flexibility.
It is very important and the other thing I would say you know ellison might want to add something to it is you know I always remind folks this is a cyclical business.
And maintaining some balance sheet strength through through cycles, he's very important to us so wildfires smartside well you've got net cash you know about $500 million now.
There is a more to come clearly, yes, with the free cash flow generation, we have but we also want to maintain that balance strength.
So we can survive through those cycles and in some cases, you know sometimes the best time to look at other opportunities outside of that kind of a portfolio as well. So it's a very holistic approach, it's flexible and it provides us provides us with a.
<unk> to shift and adapt.
Oh, that's that's that's great. That's a good answer thanks, and maybe just one follow up for me and maybe more philosophically, maybe two philosophically for a Wednesday afternoon, but in terms of the Kirkland agnico transaction and more consolidation at the.
Top of the sector or in general how the sector continues to evolve can you can you talk a bit about how you position yourselves and differentiate yourself in the market and to investors are in fairness is whatever anyone else does completely irrelevant to you and the business plan.
Look I I don't think we can put a head in the sand and ignore what's going on in the in the market. So I think that it would be wrong I think we've proven over a long time now that we are a dynamic group.
Not only in terms of our operational performance, but the way that we think advanced strategy and the way we execute against against sales strategy I'd like to think in Yellowy Mochel that we're actually probably one of the first wants to do it with the merger of the lesser and it says.
Very meaningful way when we bought the companies together with no.
No value like each to where the shareholder groups is probably paved the way for others and one that you've just mentioned.
Clearly there's.
Other folks thinking around the same so you know when they are mindset. It's right. The industry does my view you know you can tell the ocean, they're still B R too many.
Stranded acid single assets in too many management companies running smaller portfolio. So I think.
With that backdrop.
There is clearly an opportunity there for Ah for industry consolidation.
But I think it's really gonna come down to to what's right and when you sit down and you you put companies together on Piper and look at them and sometimes it doesn't make sense because there is no strategy to it it might be out sort of what's cool strategy from one company to another company.
P R going forward or they could be the fact that you know some folks are quite happy to keep on managing their businesses. So for us. It's a it's a it's on a it's on a.
Well, we'll keep looking will keep on reviewing them opportunities as they come along.
And and if anything.
Is interesting too, it's a well obviously pursue it but you know.
Some of these some of these strategic deals are much harder to do than sorry.
Great Fantastic, Thanks, very much for the answer and have.
Have a good evening thanks.
Great. Thanks Barbara.
The next question comes from Mike Caroline with Bank of America.
Please go ahead.
Oh, Hi, Rhonda, Alison and everybody there.
Well I just had a question this transition S is your partner.
Analysts for 34 years, I've actually I can't remember for a covered company I've covered soon is done before.
Does this mean as a side is gonna be re domiciled as the U S Corporation.
No it doesn't gel a lot look I think it's simply.
It's a couple of things that I.
There's a there are tests that you have to run around retaining your <unk> status or foreign private issue of status in the U S.
Yeah, where you're shareholder PISCES way of management, where decisions are made and I clearly it is coming your point for us with al.
U S Ah shareholder by spitting plus 50% and the.
The fact that you know we've got the the management team in the U S.
There's a point, where we're probably going to file that test. So part of that for US was to actually looking at us as an opportunity for us to become Ah.
A full issue or in terms of you know I wish he C U S cab.
That we can you know actually probably service they are U S investors better and hopefully open up Ah the market to us for some of those you wish to investors who can't.
Invest in companies that don't have full full issue a compliant so it might be unusual but it doesn't mean, we right almost solid doesn't mean, we lose al Canadian NTT.
Basis. It just means that we're going to repay reporting under a SEC rules as our primary is our primary focus.
Oh, Okay, well, maybe you're setting the 10 point here for other Canadian gold producers would do the same thing.
And just looks very interesting so okay, well thanks for that.
I agree with you Jessica from our perspective, you know wall is obviously, a heavy lift here and there's a lot of things that need to be gone as you can as you can understand and you heard as described today.
Having the opportunity for us to really tackle and and.
Get get some.
[noise] ability into the U S investor market with the fact that we've got this full compliance around you escape and all those he's fantastic actually so we're we're actually looking forward to it I I I think it is a real opportunity for us and their shareholders.
Thanks.
This concludes that question and answer session.
I'll now turn the call back to Mister <unk>.
Great. Thank you thanks to everyone and thanks for joining us today.
Yeah, another solar quarter and look forward to the next update you know in the new year until then thank you.
[music].