Q4 2021 Yamana Gold Inc Earnings Call
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This conference is being recorded.
C homes that don't have as you see.
All participants please standby your conference is ready to begin. Thank you all for joining US. This morning before I turn the call over I need to advise that certain statements made during this call today may contain forward looking information and actual results could differ from the conclusions or projections in that forward looking information which include but.
But are not limited to statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production cost of production capital expenditures future metal prices and the cost and timing of the development of new projects.
For a complete discussion of the risks uncertainties and factors, which may lead to actual financial results and performance being different from the estimates contained in the forward looking statements. Please refer to Yamana press release issued yesterday announcing fourth quarter 2021 results as well as the management's discussion and analysis for the same period.
And other regulatory filings in Canada, and the United States.
I would like to remind everyone that this conference call is being recorded and will be available for replay today at 12 P. M Eastern time.
Replay information and the presentation slides accompanying this conference call and webcast are available on Yamana website at Yamana dotcom.
I will now turn the call over to Mr. Daniel Racine, President and CEO .
Thank you operator, and thank you all for joining us joining us today.
With me today is Jason Jason Leblanc, our senior VP Finance and Chief Financial Officer.
Other members of our team will also be available to answer the question during the Q&A portion of the call.
I will start as always with health safety and sustainable development.
The health and safety of our employees are always come first always come first and despite our excellent track Records. This is something we are always trying to improve our total recordable injury rate was zero point 73 for 2021, and I would like to thank all of our employees for remaining focused.
I'm committed to ours and committed to our safety values during the past year.
As noted before since the beginning of the pandemic, we have taken quick action to limit the impact of COVID-19 on our operation and the communities in which we operate and we are continuing to effectively manage COVID-19.
We have put in place a number of measures across the company to minimize the spread of COVID-19.
Notably we are happy to report that more than 99% of the company's employees and contractors.
Received at least one dose of COVID-19 vaccine and more than 94% I've received two doses.
2021 also marks the completion of the second years, Oh, three years implementation of the mining Association of Canada towards sustainable development sustainable mining program and the word gold Council's responsible gold mining principles.
We achieved some notable milestone and recognition in 2021 as you can see on this slide.
I'm, particularly proud of the fact that not to hold the work surrounding our updated climate accidents accidents strategy, which underpins our commitment to a low carbon future.
With us on the path towards greenhouse gas I butman target consistent with a one five degree Celsius temperature scenario.
We are on track to produce approximately 85% of our gold equivalent ounces with renewable energy by the end of 2022.
Yeah Man has a long history of prioritizing the health and safety of its people sustainable development and environmental protection wherever it operates.
Turning now to the 2021 highlight we delivered strong operational results across the board and exceeded our 2021 production guidance for both gold and gold equivalent ounces.
As guided the fourth quarter was particularly strong with production from the company's five operating mines, achieving an all time record with Canadian mill Arctic Jacobina, several novel and they'll opinion posting standout quarters.
Yeah.
We were able to deliver this increased production at lower cost with total cost of sale cash cost and all in sustaining costs are lower year over year.
This strong operational performance is expected to continue into the future as you can see from our guidance shown on this slide which I will come back to in more detail in just one moment.
Not only are we delivering result today.
We are also setting the stage two for meaningful growth in the coming years.
During the years the year, we announced a positive development decision there wasn't Mac project continued to advance the Odyssey, both on time and on budget and the recently received the necessary permit Jack will be not to ramp up production as we advance.
The phase two expansion that would allow this mine to reach 230000 ounces per year.
We are also continuing to advance the Atlanta expansion study and eat bleach metallurgical lab testing at several novel and progressing the mirror for us that'd be two study and permitting process.
These action.
Position us to be able to deliver on them to deliver on a number of upcoming catalysts, which we believe will deliver significant value to our shareholders.
And finally, we replaced depletion of I mean, they're all the reserves I think the sustainability and longevity of our portfolio, which I will explore in more depth over the next couple of slides.
Focusing on all of our mineral reserve, we continued our track record of mineral reserve replacement replace Goldman They're all reserve at each of our own our own operation and by 130% of depletion on a consolidated basis.
This continues our strong track record of mineral reserve growth, which we expect to continue into the future.
Canadian Arctic underground mineral resources at Odyssey continues to grow as a result of ongoing exploration drilling.
Ongoing ongoing in fill drilling program continues to increase the inventory of indicated mineral resources to support the planned conversion of mineral resources to mineral reserves.
Expansion of the mineral resource envelope on all direction, either new inferred mineral resources to the inventory with a high potential for future conversion and the inclusion in the mine plan.
Jack will be not in another year of mineral reserve and mineral growth resource growth Goldman of our reserves are growing by 50, 555% or more than a million ounces net of depletion over the past four years.
Notably Cerro Moro successfully replaced depletion of mineral reserve on a geo basis, largely as a result of the extension of high grade veins at the main ore bodies of Zoe Martina and that T, which remain open at that this extend the mine life of several novel and we expect.
This to be an ongoing trend of mineral reserve and mineral resource growth similar to mineral reserve replacement cycle with dish.
Any more.
More major operation.
And you all know we achieve a fourth quarter year end.
Fourth consecutive year of adding mineral reserves in excess of depletion.
I mean, they're all reserve added in 2021 or higher grade and increased the average gold and silver mineral reserve grade by 3%.
This extends the mine life at that opinion, yet again, and the new resources provide an inventory for future mineral reserve development.
At Minera, Florida drilling in key production sector, most notably Don Leopoldo in Phantasma continue it to expand mineralization, along strike and down dip and targets remain open in both direction underscoring upside potential.
Finally, I wasn't Mac, we had at 143000 gold ounces to mineral reserves.
Through the optimization of the mining method and mine design following an in depth judge geotechnical analysis.
The growing mineral reserve and mineral resources based support our vision to have a production platform of 200000 ounces per year with an all in sustaining costs below $850 per ounces over a mine life of at least 15 years.
Turning now to our broader resource base.
Yeah Man.
That it's a difference it itself over the last several years by replacing depletion of mineral reserves and growing its resource base for future conversion.
The result of which is that when we look out over several years. There has been a very significant increase in reserves and resources.
Over the past five years total gold equivalent mineral reserve and mineral resources at the five operating mine I've increased by 32% net of the $4 6 million gold equivalent ounces produced by the operation over that period.
Brownfield exploration success extend the lives of the existing operation and present opportunities for growth within the portfolio.
As a result of companies able to add future.
Through the drill bit at future to the drill bit at a low cost per ounces with low risk and minute with minimal disturbance for the environment.
With the addition of was that Mac, the mineral reserve and mineral resources growth rate increased to 45% over five years, what's that market is already showing great exploration potential and we believe once in production it will be able to replicate the mineral reserve and mineral resources replacement cycle demonstrated.
The company's operating mines.
Looking at just our own operation and was that Mac, we increased G O mineral reserve by over 4% this year.
Our track record of mineral reserve replacement is made more impressive by the inclusion of Canadian mill, Artic, which given the nature of the open pit operation, we do not expect to replace its depletion exclude.
Excluding Canadian law to take the company has successfully delivered a 15% increase in G. O mineral reserve that's it's wholly owned operation since 2017.
The inclusion of was imac. This net increase girls to 55% with a significant and growing mineral resource base at the Odyssey project, our trend of mineral reserve growth should accelerate as we continue to lever to deliver on our track record at only one operation and start converting mineral reserve.
<unk> into mineral reserve at Odyssey.
Maintaining a sustainable production profile and replacing mineral reserve depletion requires a strong mineral resource growth program.
Notably we have been able to achieve growth in our mineral reserve base without depleting mineral resources. In fact last year, we grew our measured and indicated mineral resources at our wholly owned operation and Canadian Arctic by a combined 15% without depleting inferred mineral resources, which were up.
Marginally year over year.
The significant mineral resources.
The only one operation and Canadian Arctic provides a pipeline for continuing the increasing mineral reserve trend over the past five years.
Our company wide reserve and resource show significant scale and underpin our production guidance.
Which I will walk through in more detail now.
We expect to maintain production of a 1 million ounces gold equivalent ounces in 2022, but deliver a near growth in both 2023 and 2024.
This 3% and 6% growth.
Exceed the guidance provided last year.
The previous plan on which that guidance it wasn't base.
And this improvement reflects the resource and reserve growth already discussed and the continuous optimization of our operation.
Due to stabilize mine development and sequencing for 2022, we expect a steady or production level level quarter over quarter instead of that much stronger weighting to the second half of the year. We saw in 2021 in prior years.
The first quarter is expected to be the lowest production quarter of the year in part because of their check will be enough face to ramp up to higher throughput during the year.
The year.
We see cash costs, not exceeding 700 and twenty-five for G. O. This year with an all in sustaining costs not exceeding 1080 per geo, which is aligned with the 3% net increase at our all the Illinois accretion we guided in January .
Our costs are expected to trend lower post 2022, as increasing production, particularly at Jacobina is expected to drive down cost and improve overall margin and cash flows.
There is a mine by mine guidance information showed on the next slide and the and in the guidance outlook section of the MD&A for your reference.
Yeah.
Why do I won't spend too much time on all of the numbers on this slide I do want to comment on the positive production trend that we see over the near term overall production goal of 6% is driven in large part by an increase of 18% at Jacobina and this is also our lowest cost mine the chi.
<unk> production mix will also have a favorable favorable impact on our cost profile and cash flow generating their generation moving forward.
We are also expecting production that can eat them allowed to take to increase past 2022, with a corresponding improvement in costs as the strip ratio and all of our lives. That's the open pit transition from an uptick to the Barnett thick.
Last year last year. The company introduced its long term 10 year production outlook to demonstrate the confidence it I was in and just the sustainability of its production platform there.
The long mine life and overall values all of its assets.
Why do we expect to update this formal outlook every other year, we plan on providing an indication as to what we expect based on the interim and exploration mineral resources conversion.
And that's at the evaluations.
Based on the work done to date, we expect to increase our sustainable baseline annual production at the current operation to a million and 50 G O per year.
Beginning in 2025.
This growth into sustainable production platform is supported by our existing asset base and is not dependent on any further exploration success.
We also believe that are original growth outlook to 1.2 million Gilles.
It's gone serve it is and it will have a significant production upside at our operating mines and that there wasn't Mac project.
Preliminary evaluation of identify a number of opportunities for further growth, including the potential for a phase four expansion that Jack will be now the potential plant expansion in April each project upsell of mobile.
The addition of the new South deep discovery into the mine plan, that's held opinion and the possible addition of a second chef and further production from upper ore bodies accessed by the ramp at Odyssey.
That was a Mac there remains the potential for higher production level from Wildcat Wildcat solved and the highly prospective Fokker on fear the lack forza and properties.
Assuming all of these.
Indentified opportunities or advance the company production potential could reach up to 1.5 million Gilles within the 10 year's outlook horizon and meaningfully extend that production profile beyond the 10 year timeframe.
We also have other development project and strategic asset with the potential to drive significant long term production upside towards the end of the current decade decade.
And beyond such as Meera and others that can also create strategic value creation for the company.
Before I pass it to Jason to go however, over our fourth quarter financial performance I will briefly touch upon some operational highlights for the quarter.
Overall, that's guided production wise the weighted towards the second half of the year with record fourth quarter's production significantly exceeding the previously.
Provided guidance with exceptional results across our core portfolio.
Fourth quarter gold production Mark the highest all time total production from Yamana as mine.
Silver production was underpinned by both our opinion and several model, which recorded their highest quarterly silver production total of the year.
Fourth quarter total cost of sale cash costs and all in sustaining costs per G O or the lowest quarter.
Italy of course of the year for the year total cost of sale cash costs and all in sustaining costs per geo were all lower year over year.
Turning to the end of the individual drivers of our performance Canadian Arctic delivered a strong quarter and it continued to benefit from higher grade ore and recoveries as this transition transition from the magic to the Barnett pit.
Production for the year exceeded annual guidance.
We also continue to advance underground development and the recent recently completed the country a concrete pour for the airframe shafts sinking is expected to come in to commence later this year.
Jacobina had an exceptional quarter and delivered record production driven by tons of mine production in 2021 increased for the eighth consecutive years and also beat our annual guidance.
These positive trends should continue as we recently received the necessary permits to increase throughput for our phase expansion strategy as well as the spectacular exploration success discussed earlier.
That will all continue to benefit from our access to additional mining faces, which supported the increase in mill feed coming from higher grade underground ore and stable throughput.
Fourth quarter production was the strongest of the year.
I'd say all of them. Although we also completed metallurgical lab testing and are continuing to explore scalable plant and eat bleach.
Heap leaching upside opportunities.
Our pathway to grow depending on the result of the desk work and we plan on advancing to selected expansion option to a preface ability study that all by early 2023.
Our opinion that the strongest production quarter of the year as operation and there I agree zone at La Paloma and Tampa Compartmental mining sectors annual production also exceeded guidance.
No it'll be successful exploration efforts as deliberate and new discoveries on known as south deep.
With exploration success. The objective of helping you on is to utilize the excess plant capacity and increase production.
Lastly, I mean, your life Logy, Dod Oliver and annual production that was largely in line with previously provided guidance range. Despite the short lived labor action impacting approximately three weeks of production in December .
The plant the bulk that King studies advancing to increase throughput in Q4.
Yeah.
In fact, and social environment assessment for the expansion was submitted with the expected permitting timelines. The mine could begin operating at 100000 ton per month level in 2025.
Well, what I will now turn it to Jason to comment on our financial performance.
Thank you Daniel and good morning, everyone.
Turning to our fourth quarter financial performance. The strong production results helped revenue reached $503 $8 million during the quarter and 9% increase compared to the same period last year.
Gross margins, excluding DD&A rose, 10% to $323 $8 million from the year earlier period.
And earnings during the quarter were $109 $7 million or 11 cents per share compared with $103 million or 11 cents a year earlier on an adjusted basis earnings were also 11 cents and similar to last year.
We continue to generate robust cash flows and cash flows from operating activities before and after working capital of 14% and 25% growth respectively compared to last quarter.
We also generated great free cash flow before dividends and debt repayment during the quarter, which increased 47% from the third quarter.
After an increase in cash balances, excluding marrow of about $68 million during the quarter, we entered the year with cash and equivalents of approximately $308 million and also held about $217 million for you said Tomorrow project.
The strong change in cash with Doctor purchasing a further $3 4 million shares during Q4 under our normal course issuer bid.
Taking a look at capital spending guidance for 2022, our sustaining and exploration spending remains similar to 'twenty, one, but expansionary capital has increased to $197 million, that's planned and attributable to Odyssey of Canadian Galactic.
The trees increase.
Increased construction activity at Odyssey. This year is attributable to the surface and infrastructure work on.
The paste plant maintenance shop, and various other service buildings power line and a shocking thinking as Daniel mentioned starting in Q4.
Spending primarily on lateral development is also increasing as well from last year.
The overall exploration budget is up slightly but.
But one of the focuses of our spending this year is a significantly higher budget at jacobina, given their large and prospective landholdings and track record of growing reserves and resources.
So we've doubled Jakob he and his budget to $15 million to continue to increase and upgrade the reserve and resource base at the mine, but also a larger dedicated by Jay to unlock the district potential and identify new targets.
In addition, there is a specific 3 million dollar budget at Jacobean in Norway. This year also approximately doubled to built on the ground program from last year that identified large new areas of mineralized reef to follow up for this year.
Our exploration budget also allocated $18 million to Cerro Moro underscoring our commitment to the exploration potential there on the operation and our ability to expand the mineral resources at this operation and extend mine life continues.
Continuing on the trend we established this year, but also to position for the expansion opportunities we're developing there.
The other program of note is $20 million at El opinion, with a meaningful focus on the new South Deeps area that we're very excited about and with that I'll hand back to Daniel.
Thanks, Jayson during the quarter, we continued to demonstrate our operational strength and advanced several strategic initiatives, including fundamental work on our threat climate strategy permitting for the phase expansion at Jacobina and demonstrated ongoing exploration success across the portfolio.
We also plan on conducting several investor events over the course of 2022, including an Investor day in early April in addition to two separate in person my indoors.
During the second quarter of 2022, the company will conduct a conductor mine tour, featuring Canadian Arctic and the Odyssey project as well as the company's wasn't Mac project.
During the fourth quarter of 2022. The company will also mine tour of L opinion on <unk> and Minera, Florida.
We will announce a further not notice with additional details ahead of each ovens.
Yeah.
And last but not least I would like to thank each and every one of our employees for their hard work and commitment in 2020 to 21 and it and this is the new and this is in this new year's that.
I started we count on you to continue a minute mining responsibly.
And profitably.
This dedication has allowed yamana to demonstrate oh personal strength and delivered strong cash flow generation, which together with our exploration success pushes us well to deliver on our next stage of growth.
And with that I will turn it back over to the operator for questions operator.
Thank you Mr. Kim we will now take questions from the telephone lines. If you have a question and you're using a speaker phone. Please lift your handset before making your selection. If you have a question. Please press star one on your devices Keypad you may cancel your question at any time by pressing star queue. Please press star one at this time, if you'll have.
A question there will be a brief pause about the participants register for questions. Thank you for your patience.
The first question is from Ralph <unk> with eight capital. Please go ahead.
Hey, good morning, guys. Thanks for the Q&A session Daniel.
My My first question and I know, it's early days, but there's discussion about our second shaft at Canadian <unk>, just wondering what's going to be driving that decision should we think about that in the context of the sort of scale up of the entire operation or is it more exploration and resource driven things like E schooling and random alert.
Like help us put that in context. Please.
Oh, good morning, Ralph you use.
Touch it on your last point is basically based on really good success on exploration. So far as we you know we extended and now theres one more than a kilometer east of the existing knowing the resources and the reserve at the resources that are at East Goldie. So you know it's only.
Our strategy. This decision that will come later right now the focus is really to advance the development underground drilling from underground and then you know startup production on the Odyssey South to next year, but as this thing grow and you know with over 15 million ounces of resources right now we have to think about.
So what's next at that at Canadian allergic.
Yes, understood, Okay, and as a follow up sort of a broader question on this long term target of 1.5 million Gilles you know Daniel how realistic is that.
You talked about advancing all the opportunities should we think about that in terms of like this is the plan or should we obviously have some sort of consideration for competition of capital within Humana's project analysis and help us put that in context.
Well I can tell you we have a plan that shows that number Ralph we're working on this now for over two years you know, we're really seeing a 10 year outlook that that's conservative when we talk about the one point too, but you know that our phase four expansion that are.
At at Jacobina, Israel. It's exists you know with the growth reserve if you know or successful like we think we will be at that L. Opinion grade will get up and then we have new zones to mine, we're very confident in Cerro Moro, we had great success at several of them over last year on exploration and it continue.
News is we're getting the results of drilling of last late last year and early this year. So and then the expansion of our of new that I figured out you know all of the mines. We think we can do better even even the ones that Mac, what probably change by the time by what we're speaking now by the time the mind isn't production you know we're going to.
A lot of efforts on drilling so we have a plan that shows that we can reach that with the existing mine including wasn't Mac.
Thanks, that's very helpful. I mean, these things look like high impact low risk high IRR type of bolt on projects. So interested yeah. How this develops yes, it's always our target debt.
No Jack will be now is a good example, we have basically spent just we're going to spend just over 20 million what phase one phase two and phase III now we're seeing a small amount. So a very high return project Big girl with for a small amount of capital investment in the project. We're studying at that sell them all are the same.
Tool to increase production, but very little capital.
And as you know El pen you on any tons it doesn't cost any money because the mill capacity is already there. So we're looking at these I project and this is what globally. Our team is evaluating each year, which project. We should we should run the first with high return.
Thanks, Dan This is very helpful.
Thank you. The next question is from Jackie <unk> with BMO capital markets. Please go ahead.
Thank you very much for taking my question.
Conceptually about the.
Investor day, or analyst day that you've got coming up.
It seems like you have plenty of focus on the longer term.
Projects in production.
Well why don't you update your 10 year.
It seems to me you have new information to report at the analyst day or are you saving that for 'twenty.
Thanks.
Yeah.
Yes.
It won't be.
So.
Sure Danielle I'm, having trouble hearing you.
Okay.
Is it better now, but yeah, yeah, okay. So good morning, Jackie Yeah.
Our target on the April 5th is to show what we released today, you'll see where you're going to update that 10 year also on each chicken year. So the new update will come in 2023, but like I was saying this morning and made it clear if we have something new coming like you know last year, our guidance was a million ounces for the next three years now with <unk>.
Greece. It by 30000 ounces are next year and then another 30000 ounces in 2024, so that's a big big increase for us and if there's changes in that plan are we going are we we want to talk about it. So yes. The April will show the potential for the future and talk about the project I spoke of earlier.
Sure.
So basically it's more information about the plan that you.
Is that right, yes, yes, okay.
And my second question is on Mara I know you've got the feasibility study that's coming out sometime this year by year end well what are you what are your thoughts what are.
You on what happens next year or going forward.
One can we expect to see certainly three or 2024 on that project.
Well, our plans have not changed but I'll, let her are the answer what's what's coming from arrow.
Good morning, Jackie.
Yes.
Finish.
Yeah.
Alright.
Sure.
Yeah I'm sorry.
Is it better now I guess, yeah, yeah, Yeah, I was saying the plan for 2020 two as we said, it's it's two completed feasibility study and get the results.
By the end of the year and also filed a a also late in the later part of the year and then the main focus would be on the permitting are trying to achieve out of it in 2020 three.
And then depending on how that goes and we have an expectation on the timeline, but then we continue to advance engineering.
Even though the project is well advanced in terms of the plant. Obviously is built they're all the things that we think we can do it continued to optimize so that they would expect to have a parallel track bedroom and good evening everyone.
Works in preparation.
But you also have noted that we have said that depending on.
On the other.
Our factories, we will evaluate where we stand more strategically we got into the project.
And at that time, when we get this would meet all of their I D. I, a and that will drive us towards all the decisions.
Terrific. Thank you very much that's all my question. Thank you.
Yeah.
Thank you. The next question is from Fahad Tariq with Credit Suisse. Please go ahead.
Hi, Good morning, Thanks for taking my two questions just first on the long term outlook and can.
Can you delineate between how much of the growth to 1.5 million ounces comes from Wassa Mac versus all the other operating mine.
Oh to go to 1.5, good morning first to go to a 1.51st of all you have to go to the one point to 1.25 now actually with the increase of 50000 ounces I said, it's what that market is going to be 200000 ounces out of this for now.
But like I mentioned, we have with success on exploration and that was that Mac. We're studying what will be wasn't Mac into future and then some of it some of the the.
3000 ounces more 300000 ounces more some of it can come from was that Mac, but at this point. It's it's conceptual I don't want to give the detail, but we see clearly that we can reach that target.
Okay. That's helpful. And then just taking a step back philosophically I mean looking at the portfolio. It looks like you can have a very capital light.
Growth profile with the existing mines with lots of Mac.
Is there any.
Appetite to still look at the generative exploration program or anywhere else to think about a newbuild is that even part of the 10 year discussion anymore.
Is it is a like Jayson mentioned, we have increased our our budget that Jack will be no. It's not for nothing and we continue to to go towards what we call Jack will be no naughty eventual default change that name for the other day, but that's one of the big prospect we have for another in mind, we have a lot of AI and in Brazil also.
That we think can be a part of that increase you know that the extra 250 to 300000 ounces can come from that project within the the 10 year's guidance outlook. So, yes, a degenerative exploration.
Project, we still think we'll generate one mine, but we're gonna be more focus you're going to see this year, we won't spend on seven or eight projects like we did before it will be more focus on two or three projects and then for sure Jack would be nice in one of these projects.
Okay, that's clear and I'm, just going to squeeze one more minera, Florida. The labor actions that happened in January can you just give us an update on where things stand now.
Oh It was a it was set also production restarted in the towards the week of January and then the full week a full February so far is it's it's back to full operation. So we lost three weeks in December and three weeks in January .
And the negotiation.
Negotiate negotiation one one went well so there's no. There's no problem, we bought a reach an agreement that was what's good for both parties for three years. So.
We won't talk about.
About Oh, we definitely the next three years.
Okay. It sounds good thanks, Daniel that's it for me.
Thank you. The next question is from Mike <unk> with Bank of America. Please go ahead.
Hi, Good morning, good morning, Dan.
Yeah, Dennis it's not a question of going into the second shop conceptual at this point.
But that would be kind of aimed towards the non royalty ground with the mineralization goes onto it.
I have a second question after that.
It's it's very conceptual like we mentioned, it's going to be on the Ace further east to the actual the actual Odyssey project.
Towards rent it I'm not sure it will be on their own ground always will be on the Canadian Arctic a ground.
Ground, yet like I said, we said its conceptual but as we see resources increases and that's what we're going to drill it more now from underground and it also forms continue on surface, we will see in the future what's the best position the actual the Odyssey chef when we first thought about it was in a different location and with time, we we.
To put it it all depends where the it was a center distribution of the ore body will be that we use are they tried to put it in the middle of the this one so even though we can go on each I into two main so the final location is not decided as we we continue to expand towards the east.
Okay, and then moving to El Pen Y'all I notice from 2021 production 24 silver production.
9%, almost 5 million ounces and 24, whereas gold productions flat. So it's helping you already into higher silver grades and is that sustainable past 24 months.
Yeah one.
Oh, Hi, Henry.
Certainly the zones at our opinion, it's a matter of scheduling there's certainly our zones with higher grade silver and it's really just a scheduling issue there.
So they'll they'll see that increase as they go into zones that have that slightly higher silver to gold ratio.
We have is one that we have is one Mike that's R. A lot richer than in and silver.
That's our opinion and it all depends on sequencing like that cannot be mentioned.
Okay.
For the trip later this year thanks.
Thanks.
Thank you once again, please press star one on your devices keypad. If you have a question.
Next question is from John Tumazos, with John Tumazos, very independent research. Please go ahead.
Thank you.
How are you thinking about the strategy.
<unk> project in Argentina.
There's lots of places in the World look a lot less good like West Africa, Ukraine Chill.
Chili's Constitution, Argentina is a little rough but.
Yeah.
Probably it's not going to get any worse.
Gold and copper prices look great too.
Yeah.
But John look we've we're mining in a in Argentina that SAR 12 years, starting this year. So we know the country quite well you know with the glaucoma Youll might end up fast with the the project we have there with the Cerro Moro mine, so what's our thinking our thinking I think our auto expanding quite well but.
For our plan now is to complete the phase <unk> study without partners you know our company D E I E.
The end of this year also then then permitting process and then continue to advance the the project and then we will see what what's happened in the in the future our goal with borrowers to continue with even though to create value for our shareholder is the best option is to.
Two to build it so be it if it's the best option is to sell part of it the 100% of it we'll see but we're not there now we are really focused on the on the defensibility study and the the permitting process.
Sure Danielle.
Today, the gold prices so wonderful at 1900.
Many of the small cap gold stocks I only go down you know maybe that bitcoin is the big competitors or something.
Do you think you have enough management time to make another acquisition.
Mega precious metals, there's little companies Theyre, almost free and the stock market.
Look John our strategy is quite clear we have five great operation that we we see a lot of our potential to to get to higher production. We have was that Mac that will be or new mines coming on stream, we think internally with our generative exploration program Wheeler.
Have another mine, but we have to keep our eyes open look there wasn't not project came to us.
Last year, we looked at it we decided to buy it so opportunities like that we were going to keep our eyes open that's our job as management and we do it to look at opportunities you know in the Americas. We we won't go another dramatic jurisdiction like we mentioned, but across the Americas from from.
Saada in Argentina, two in northern Canada, or we're looking at opportunities all the time and then one can fit our strategy and our goal. Then we can we will we will look at it but right now we're really focused on you know the expansion of Jack will be now deliver.
Delivering on the Odyssey project construction and all the other projects like matter, while I mention and then they'll go with internally.
I own a few shares I am very happy Thank you.
Thank you there are no further questions registered at this time, so I will now turn the meeting back over to Mr. Racine.
Thank you operator, so thank you all for joining US today, we look forward to sharing our first quarter result in the spring, but before that for sure the Investor day in the in April are please take care and be safe bye for now.
Thank you.
The conference has now ended.
Disconnect your lines at this time and we thank you for your participation.
Thank you. The conference has now ended please disconnect your lines at this time and we thank you for your participation.
This conference is no longer being recorded sets Kofi Hudson at Bluestone Hershey's Te.