Q4 2021 Centerra Gold Inc Earnings Call

February 25, 2022

Okay.

Yes.

Greetings and welcome to the Sentara gold fourth quarter and full year of 'twenty 'twenty. One results conference call. During the presentation. All participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press the one followed by the four on your telephone if at any time during the conference you need.

To reach an operator, please press star Zero as a reminder, this conference is being recorded Friday February 20th 25th 2022, I would now like to turn the conference over to Toby Karen <unk>.

Treasurer and director of Investor Relations. Please go ahead.

Thank you operator, welcome Disinter Gold's fourth quarter and full year 2021 results conference call summary slides are available on <unk> Gold's website to accompany each speaker's remarks todays call is open to all members of the investment community and media in listen only mode. Following the formal remarks, the operator will give the instructions for asking.

A question and then we will open the phone line to questions. Please note that all figures are in U S dollars unless otherwise noted.

Joining me on the call today are Scott Perry, President and Chief Executive Officer, Darren Millman, Chief Financial Officer, Dan <unk>, Chief Operating Officer, Dennis <unk>, Vice President business development, and exploration and Malcolm Stallman Vice President exploration.

I would like to caution everyone that certain statements made today, maybe forward looking statements and as such are subject to known and unknown risks, which may cause our actual results to differ from those expressed or implied.

Also certain measures we will discuss today are non-GAAP measures. Please refer to the to the description of non-GAAP measures in our news release and MD&A issued this morning.

For a more detailed discussion of the material assumptions risks and uncertainties. Please refer to our news release and MD&A, along with the audited financial statements and notes and to all of our other filings, which can be found on SEDAR Edgar and the company's website at <unk> Dot Com and now I'll turn the call over to Scott.

Thanks, Toby and a very good day to everyone and thanks for joining us for our year end earnings results Conference call.

Toby mentioned I'm, just referencing the summary slides that are available on our website.

Just starting off on slide number five I just wanted to speak to some of the key bullet points here in the top left.

2021, it was another strong year in terms of the company wide gold production profile I can see for the full year. We finished with some 308000 ounces of gold output, which is at the very upper end of our guidance range. So a good level of performance in both of the respective operations and.

In terms of the third bullet point, just given that strong level of metal production and spends about corresponding all in sustaining cost per ounce.

The low competitive $640 million per ounce and again I'll just highlight that that was the.

Favorably lower than our full year guidance range the same.

Same for instances just each of the all in sustaining cost results at both Mount Milligan and offsets. So I think underpinning a portfolio that is certainly lower cost quartile.

The strong metal price environment that we're seeing in gold and copper as well as the low unitary cost in the fourth bullet point here, we had an excellent year in terms of free cash flow generation, we generated $178 million.

Free cash flow and again that was above the.

The upper end of guidance, so a favorable result.

With today's release, we have also reported at year end reserve and resource update.

A couple of the key highlights here is we have replenished production depletion at offset operational goldmine.

So in terms of that Mount Milligan operations.

Have reported in terms of that gold resources with reported an increased some $1 4 million ounces and in terms of our copper resource inventory that we've reported an increase of some 450 about 50 million pounds of copper as we communicated previously we are embarking on a new technical studies at Mount Milligan, and we expect to be releasing that.

In the second quarter of this year.

One of the key objectives is to be.

Upgrading a lot of this new resource into reserve category, which should underpin an extension.

Milligan indicative reserve and then just lastly, the last bullet point as we announced on Tuesday morning.

The exciting acquisition of the <unk> District project in Nevada, and I will speak to this.

Towards the end of this presentation, but again, an important development as <unk> that I think is going to underpin.

Organic growth profile here in the medium term just referencing the chart on the bottom chart in the bottom left is Mount Milligan you can see the full year result, there again, some $202 million in positive free cash flow, which is an excellent result, and then offset which is the middle chart again the column on the far right.

Third in 2021 generated some $112 million of positive free cash flow that also marked an important milestone in upset if you take the free cash flow that we generated in 'twenty one.

Free cash flow that was generated in 2020, we have essentially paid back the entire upfront investment of some $200 million.

Been a great experience and a real success and again just want to recognize the leadership team.

The results they've achieved there.

Just moving on to slide six.

The presentation just in terms of some of the key corporate highlights starting off with safety first it.

It was a good year in terms of safety.

During the year achieved 2 million hours of lost time incident free operations and you can also density inductor achieved eight years at Thompson Creek mine in England facility. They each achieved one year.

Continuous operations without a lost time injury again important milestones and indicative that we're on the right path in terms of that shoots.

Our objective for zero harm operations. So again just wanted to commend.

The leadership teams across the organization.

Just in terms of the third bullet point as we announced at the beginning of the year, we have been engaged in negotiations with the.

Political leadership in Kurdistan regarding the dispute over the comes online in the illegal seizure.

Of that operation.

And generally speaking the key aspect in terms of what would be negotiating here in terms of resolving this sinter.

<unk> will be looking to relinquish legal ownership of the operation to Chicago.

And in exchange Kyrgyzstan, we'll be looking to relinquish that 26% shareholding in some tariffs as and when Thats relinquished we'd then be looking to turnaround and cancel their shares in terms of the current progress.

Right now without respective legal advisors, we're working on negotiating the.

What I would call the global settlement agreement and Edwin that negotiation is finalizing being built that will be in a position to sign that and press release that accordingly, So continues to progress and hopefully we'll have more news on that forthcoming shortly.

Just on the sixth bullet point, just wanted to again just recognized Mount Milligan.

Mount Milligan had a record year in 2021, and some of the mill throughput was the highest level of throughput that we've seen in the history of the operation and then you can see in terms of the free cash flow result from $202 million that was also a record year in terms of being the highest level of free cash flow is being generated by the operation.

On the eighth bullet point here third last bullet point again I spoke to this earlier, but very low cost in terms of that one and sustaining cost across the portfolio very competitive $649 per ounce and then as I mentioned earlier, you think team for emphasis the portfolio is certainly one that's showcasing a first quartile cost structure.

Second last bullet point there.

We are anticipating that a lot of this strong production momentum is going to carry into this year. We are guiding for up to 425 ounces of gold in terms of the midpoint of our guidance and that makes for.

Pretty compelling organic growth essentially we're expecting up to 40 expecting up to a 40% increase in gold production. This year over over the last year and then in terms of the last bullet point here is a growing level of gold production as well as the sort of current metal price environment, we are expecting a corresponding increase in the level of free cash flow.

Generation this year, but guiding for up to $250 million of positive free cash flow. So that's going to present well just in terms of the growth in our balance sheet and underlying profitability.

Within the business.

Just moving on to slide seven just in terms of.

Brian mental social governance profile and just some of the key update here.

I spoke to earlier safety continues to be.

To be absolutely Paramount and I touched on some of the milestones that we achieved in 2021 that will continue to be an enduring focus here moving forward over the course of this year.

<unk> is a member of the World Gold Council and we have signed up to the local council's responsible gold mining principles that we're currently rolling these apps and implementing these principles at each of our operating and project assets and making very good progress there in very good stead.

Achieved full compliance.

In the coming 12 months with that I'm now going to turn the call over to Dan <unk>, Who's our Chief operating officer, and Dan can expand a little bit more on the operating highlights.

Please.

Thanks Scott.

Good morning, everyone. Please move to slide nine and I'll start with the 2021 operating highlights.

I'd like to start our 2021 operating highlights the focus on safety and.

In Q4, our total reportable injury frequency rate, our tripper was 189 due to a number of incidents at Mount Milligan and one more severe incidents at Oxford, where contractor injured his finger.

Overall, our trip or was 1.0, too which is well above our target and has given a rise for need for even further focus on our visible felt leadership in the field.

Two positive milestones that Scott spoke to in the year, where that Oxford mine did achieve 2 million work hours without lost time incidents and Endako.

Having eight years, although on care and maintenance still has a number of activities I would say that that eight years and Thompson Creek and laying loss facilities. Both went through the year without a lost time injury.

So <unk> continues to prioritize the health and safety and well being of its employees contractors communities and other stakeholders as Colgate is still with us.

Yes, theres other businesses, we are seeing stresses and our supply chain.

Couple of small capital projects, but our people have been staying ahead and it is there has not.

Been any material negative effect on our operations.

On the production front, we had another strong quarter at our.

Two operating sites, producing 91197 ounces of gold and 17 million pounds of copper at an all in sustaining cost on a byproduct credit.

From continuing operations of $591 per ounce sold.

On a full year gold production came in as Scott indicated 308141 ounces, which is right at the top end of guidance with our copper production coming in at $73 3 million pounds in the middle of our guidance.

Our gold production costs, we're very competitive $604 per ounce at the bottom end of guidance.

Which was 600 to $650 per ounce and this was due to the increasingly ounce production and strong cost controls.

For 2021, our all in sustaining cost on a byproduct basis from continuing operations came in at the $6 49, with Mount Milligan, a very low $508 per ounce with the strong copper credits in Oxford at $668 per ounce.

Please go to slide 10, and we will specifically look at Mount Milligan.

Over the past few years, we had a strong focus on our process water management, a very positive step forward occurred on January six 2022, when we obtain the amendment to our environmental assessment certificate to allow for <unk>.

<unk> on our long term water requirements, we continue to work closely with our partners on our permitting requirements and environmental management plans as well as licenses for occupation of the land required pumping infrastructure.

We will continue to construct the new staged flotation reactor the sapphire.

Commissioning was setback due to the end of March partly due to the supply disruptions, but also we had safety concerns during the assembly that created the need to change our contractor.

Although this did set US back we felt that we must act on all safety issues. As this is our most important value.

We completed the first step of the Mount Milligan Technical study, which.

Taking our 2021 drill results and produced the optimal resource pit.

The next stage will be convert resources to reserves and produce a new life of mine 43, 101 technical study, which is on track.

For completion in the second quarter.

As part of our new life of mine, we did complete nearly 40000 meters of drilling in 68 holes.

These were delayed but we have now included all of those and the resource update.

The Mount Milligan team had a number of excellent production achievements under the leadership of our new General manager Gerald Ford thing.

Of note in the past year was the achievement of the highest throughput for the site since the operation began in 2014.

In the table at the bottom you can see that the recovery of both copper and gold are somewhat variable quarter to quarter. This is due to ore type.

Both copper and gold recoveries were slightly better than planned due to the new grinding process control system.

We are anticipating continued improvements in our recoveries with the commissioning of the Sapphire in late Q1, and later a new floatation control.

System.

Turning to slide 11, we will discuss Oxford's highlights.

Oxford mine had a very successful year and is on plan.

Mining in the fourth quarter.

<unk> phase two and I agree so poor.

As well as in <unk>.

The higher grade output from the mine will continue through 2022.

The exploration and infill drilling of 31000 meters delivered enough additional reserves to cover the depletion for the year.

And this was with the success of planning and we are going to do 40000 meters in 2022.

<unk> is now running very much steady state. Therefore, the focus is on productivity and efficiency and thus we're putting out guidance that is a very competitive all in sustaining costs for oxo on a byproduct basis for 2020 to 425 to $475 per ounce.

In total we placed 195990 ounces on the heap of which 16200 was on Euro David.

<unk> 1100.

Sorry, 111703 ounces, which was slightly above our 2021 guidance.

Moving to slide 12, we can discuss Mount Milligan reserve and resource update.

Mount Milligan was able to complete his drilling program and updated as resources with all the assay results.

The new life of mine is planned to be released in two therefore this update we have just depleted reserves.

Therefore did decrease from $2 1 million ounces of gold to one 8 million ounces and for copper from 837 million to 736 million pounds.

We did.

It did have a substantial increase over in Mount Milligan resources, which has now increased in terms of gold from 139 million ounces to two 7 million ounces of gold and copper increased from 521 million pounds to $974 million.

We have taken all efforts to finalize the new 43 101 in Q2 and that will take into account. This large increase in resources.

On slide 13, proximate reserves and resources.

And obviously, we did have an infill drilling as we do.

Did do near mine exploration as well the site was able to replace its throughput of 196000 ounces with the additional 203000 analysis. Therefore, an increase in total.

<unk> of 113 to $1, one 4 million ounces.

Oxford resources also increased slightly to 230000 ounces to 283000 ounces with an average grade dropped below 66 grams per tonne to five zero. This is due to the cutoff grade reduction.

Zero grams per tonne to one six grams per tonne.

Moving to slide 2022 in terms of guidance outlook for 2022, our consolidated gold production range is between 400, and 450000 ounces Mount Milligan being 190000 ounces to 210, and Oxford from 210000 ounces to 240000 ounces.

For copper Mount Milligan is targeting to produce between 70 and 80 million pounds.

For our consolidated gold production and cost guidance for 2022 that will be between 500 and $550 per ounce with an all in sustaining cost on a byproduct basis, we are guiding a very competitive 600 to $650 per ounce.

Milligan is all in sustaining guidance within that is 575% to 625 and <unk> suite with the higher production is looking at guiding 425 to $475 per ounce.

Moving to slide 15.

22 <unk>.

A total capital expenditure of $95 million to $105 million of which sustaining capital is the majority coming in at $90 million to $100 million.

The non sustaining capital of only $5 million is a carryforward from 2021 to complete the staged flotation reactor at Mount Milligan.

Of note, we are looking to spend between 35 and $45 million in exploration, including exploration that Mount Milligan, a $12 million and <unk> 5 million.

Additionally, in regards to the newly acquired Goldfield District project, the company expects to incur $15 million to $20 million in relation to the exploration activities at the project in 2022.

Overall <unk> is guiding a strong free cash flow of $200 million to $250 million at a gold price of <unk> hundred dollars per ounce and a copper price of $4 per barrel.

With that I'll pass it over to Darren our CFO to review, our fourth quarter and 2021 financial results.

Thanks, Dan Good morning for those following on the slide deck on slide 17.

Sure.

And Taro quota 251 billion in revenue during the quarter consisting of the map really goodbye the oxide mine and our molybdenum business unit.

Revenue consisted of 136 million in gold sales and 62 million in copper sales and 40 million $40 $52 million from Apple business unit.

In the quarter, our continued operations so Archie.

<unk> thousand 312 ounces of gold.

58640, 2000 ounces from Mount Milligan bonds, and 31670 gold ounces Akshay.

We also sold $17 2 million pounds of copper in the quarter.

For the 2021 year, continuing operations sold 314, 757 ounces of gold at 21% increase year on year.

This representing the upper end of about 2021 guidance.

We also sold 78 billion pounds of copper a 3% decrease at the mobility Goodbye.

This is attributable to the 16% decrease in copper grades processed during the quarter during the year.

This was positively offset by the 4% additional tonnes processed and the high levels of inventory held at the start of 2021.

During the quarter the company's operations average gold price realized was <unk> $104 per ounce and $3 59 per pound of copper.

This incorporates the existing stream of range over the macro the goodbye.

Cash provided by operating activities from continued operations was $61 8 million for the quarter and 271 billion for the year.

Free cash flow from operations for the quarter was $38 $7 million and $178 4 million for the year.

At an operational level and that really goodbye generated 46 million in free cash flow for the quarter at 201 for the year.

The opposite and monitor the quarter generated 35 million in free cash flow.

112 billion for the year.

Akshay <unk> now in the higher grade gold sequencing is highlighted by the 2022 guidance with up to 240000 ounces of gold to be produced.

The adjusted net earnings per share <unk> 12 cents for the quarter at 79 for the full year.

But now speaking to slide 18.

The net earnings from continued operations was $274 9 million in the quarter with $35 4 billion and adjusted net earnings.

The earnings in the quarter attributed to operations were $59 million up contributed front about Milligan bot.

$38 7 million contributed from the Oxford mine at one point to be a loss from the molybdenum business unit.

During the year and for the quarter there were several adjustment adjusting items of significance that I noted.

The slot.

I was speaking to.

Speaking to the quarterly adjusting items.

Firstly, Mount Milligan mine impairment reversal net of tax recorded over $117 3 million.

And initial payment was recorded in Q3 2019.

Since then the Mount Milligan mine has improved.

Improved with sustainable performance with a reduction in both mining and milling costs on a unit from a unit prices.

This together with the increase in the underlying resources at the long term copper and gold price increases.

Arrow has made the decision with confidence to reverse the impairment.

We look forward to sharing the new Mount Milligan Technical report in Q of this year together with the three year consolidated update.

Secondly, the gain on sale of the Green Star property.

An additional 25 million gain was recorded in the quarter.

A trigger event being the construction decision.

Orion resources and its JV partners.

This amount is due and payable <unk> highlighted the December 2020 23.

Since here has not recorded the additional consideration that is attached to the production milestones of the greenstone project.

Thirdly, the income and mining tax adjustments of $132 7 million was recorded.

This is in connection to them that really goodbye now recording a deferred tax asset given the confidence management now has an income generation from the Mount Milligan mine and the company using a three year forward look realization approach.

The other adjusting items, representing a combination of reclamation provision expense driven by the accounting standards and the need to apply current underlying discount rates together with the legal and other costs associated with it so far.

I'll now move to slide 19.

From a cost perspective, <unk> continued operations in the quarter over quarter production cost of $550 per ounce of gold and for the year 604 per ounce sold.

All in sustaining cost on a byproduct prices of $591 per ounce and was recorded in the quarter.

At $649 per ounce for the year.

At an asset level for the full year Mount Milligan recorded all in sustaining cost on a byproduct basis of $500 per ounce.

Outperforming the 2020 'twenty one guidance range of 530 to 580 per ounce.

Oxide recorded all in sustaining cost of $668 per ounce for the year also outperforming the 2020 guidance range of 700 to $700 per ounce.

The company exited 2021 with a cash balance of $947 million the board declaring a quarterly dividend of <unk> <unk> per share.

I would like to draw your attention to the box on the left hand chart.

I would note in 2021, the free cash flow was $178 million, we are seeing is growing.

Two $220 million in 2022, using a seven to $800 gold price $4 copper price that at midpoint.

Obviously conservative cost, obviously conservative and you see current cost environment.

Based on our sensitivity analysis disclosed in January 18th press release at <unk>, <unk> increments and gold price movement will generate an additional 35 million in cash for some tariff.

Finally, the bottom right hand chart, noting the 2022 column.

Fully loaded all in cost is $725 per ounce of gold therefore for each ounce of gold produced a very healthy margin.

With that I'll pass it back to Scott.

Thanks Darren.

Just referencing slide 21, just to recap as we announced this past Tuesday.

<unk> development Harrington Terra is the acquisition of the Gulf of District project.

This is going to be important to the organization moving forward and just being one of the key sources of organic growth here over the medium term.

Typically the transaction and the rationale as you can see has been a slide we're acquiring this project with some 175 million of those U S. In cash with a further milestone payment of $31 5 million in cash <unk> shares at our election to $175 million in cash obviously means that our share count will not be.

And so in terms of the value proposition here in the.

We expect this to be an accretive transaction, especially when you think about how we are increasing our shareholders.

<unk> exposure.

The result is future reserves or future incremental production.

A lot of strategic rationale in terms of pursuing this project and you can see that illustrated on the slide here.

Firstly, we think that adds a high quality development projects in our pipeline as a conventional open pit heap Leach project very similar to our operational <unk> Gold mine.

We expect this to be a meaningful source of future low cost production and in terms of future. Construction. We would certainly noted this project should have low capital intensity similar to our experience with the operational offset Goldman.

Coal mining operation in Turkey.

You can see it's going to improve our geographic profile. The project is located in Nevada, which is deemed a tier one mining jurisdiction and importantly, the sentara. This is going to favorably reposition our portfolio just in terms of that geopolitical risk profile and I would like to think that's going to support.

Our robust valuation moving forward just in terms of that valuation multiples.

In terms of the work done to date, but by the vendor.

It's been very very high quality and one of the things. We've certainly noticed noted is a lot of strong support.

Some of the communities in terms of the county in terms of the regulated within the agencies. So we do expect to be establishing a strong license to operate here.

One of the.

The important aspect here and some of the industrial logic is it allows us to leverage our existing operating expertise.

As we've commented previously we see this being very similar to our offset Goldman in Turkey, and Thats going to allow us to leverage a lot of that exploration development and operating expertise and again hopefully replicate that success that we've had we've offset and replicate that here with the goal to districts.

R J.

Second half.

Yes, just in terms of the exploration potential we think it is significant it is a large land package and in terms of the overall and down here in the history. It has produced some 4 million ounces of gold. We think it is still under explored a number of drill ready targets that we'll be pursuing and our objective here is to be.

Expanding the known deposits and extending the mine life and then it will certainly be a key focus here in 2022, and just lastly, we know this project well we have been evaluating this since 2020 the level of due diligence that we have undertaken here. It has been quite extensive and then obviously.

Pins are confident in the overall sort of opportunity here in terms of this year I think some of the key milestones.

Over the next 18 months some of the key milestones, we'll be pursuing the Gulf with District project is in the first half of 2023, we'll be publishing a sin Tera <unk> results for the property and thereafter, we'll be publishing a feasibility study and moving this project forward.

The physician for a potential construction decision. So overall I think it's an attractive value proposition and we're very excited about this and particularly so because this will represent a mix of organic growth is from terra in the medium term.

Just moving on to Slide 22, just my my final slide.

What I would just highlight on this slide just in the bottom right hand corner.

Darren spoke to the very good year in terms of free cash flow generation you can see the column on the far right. We generated 178, new windows or positive free cash flow.

Looking forward to this year.

Gold production good organic growth our gold production is growing by 30% to 40% and just given the current metal price environment that should certainly make for another strong year in terms of free cash flow again in terms of the upper end of our guidance. We are guiding for up to $250 million of public free cash flow and net level of profitability and cash flow.

Generation, that's going to certainly underpinned.

Peer leading balance sheet and likewise, our investment in <unk> and go through a district project. So again I think we're well positioned in great stead.

Another year of strong performance at some tariff.

With that I'm going to conclude our prepared remarks, and dean or if I can pass it back over to used to facilitate the Q&A session. Please.

Oh, sorry.

I'd like to register a question. Please press the one followed by the four on your telephone you will hear three come from to acknowledge your request.

So for your question has been answered and you would like to withdraw your registration. Please press. The one followed by the three once again to register for a question over the phone lines. Please press. The one followed by the four and I was just going to be a moment for the first question.

Yeah.

Our first question is coming from the line of Fahad Tariq with credit Suisse. Please go ahead.

Hi, Good morning, Thanks for taking my question can you touch a little bit on how you're thinking about capital allocation.

I think you touched on this right at the end of your presentation.

The balance sheet has $900 million of cash.

The recent.

Acquisition costs around 200 million with another $200 million of Capex, I guess still quite a bit of capacity to maybe raise the dividend Dubai.

Do you buyback.

Maybe even further acquisitions, just any thought or thoughts on how youre thinking about.

On the balance sheet and how to potentially.

Leveraged some of that cash.

Yes, Thanks Ed.

We certainly recognize the balance sheet is in a very strong position in terms of that cash balance you could advocate that surplus to sort.

Sort of medium term requirements, moving forward and Thats, something that myself and the board with cognizant.

We have been having a number of discussions around potential shareholder friendly.

Capital return initiatives in the past, we've always been primarily focused on our dividend distributions and if you look back over the last sort of two year period, we increased our dividend <unk> <unk> per.

Per share per quarter, then to <unk> <unk> per share per quarter, and then most recently, we've increased to seven cents per share per quarter.

They will continue to be discussions and deliberations on that with the board.

We certainly have the opportunity to look at increasing our dividend distributions, even more so but we also we debate and deliberate on.

Essentially share count.

Reduction initiatives, all the way considering things in terms of our normal course issuer bid when do we do something more substantial in terms of a substantial issuer bid. So we will continue to evaluate these things, but the one thing that dictates the timeline around all of this is we're waiting until we have the result situation.

The government of Kurdistan.

As I mentioned.

That is a call.

Progress is pretty good there in terms of the negotiations around finalizing the global settlement agreement, but it's not until we have that.

Fully resolved that situation that we will be able to actually embark on any sort of meaningful capital return initiatives the reason being.

The government of.

Ferguson through their agency heavy loaded they are 26% shareholder in some tariff. So we wanted to wait until we've result that shareholding and thereafter, I think that'll put us in a good position to really embark on those evaluations in discussions around what we could be doing incrementally in terms of capital return Ines.

<unk>.

Okay. Okay.

Okay, and then just switching gears to goldfield.

Can you just give us a rough idea of timeline like what are some milestones maybe in 2022.

Yes.

Yes, so look over the next 18 months, we're in what we call the definition around the project and so if I look at this year. For example, we're going to be extensively focusing on infill drilling as well as our exploration investment all of that work will be going into in supporting a.

Our property resource update will be looking to publish in the first half of 2023.

In parallel the technical team commencing.

Detailed engineering.

Water studies as well as other technical aspects metallurgical test work et cetera, and a lot of that work will then support a.

A new feasibility study for the project and that Phase two study itself within supported New technical report for the property and the <unk>.

<unk> been doing all of that is going to make sure that we're positioning the project for a construction decision over the next 18 months.

Assuming we do get that construction decision a positive approval from the board in terms of sanctioning the construction of the project and then looking at a two year construction timeline. So again really the key sort of catalyst.

Catalyst here.

Ed.

A resource update in the first half of 2023 and then shortly thereafter, we will be publishing the feasibility study for the property.

Okay, great. Thank you very much Tom.

Our next question is coming from the line of Dalton Barreto with Canaccord. Please go ahead.

Thanks, operator, and good morning, everybody Scott Congratulations on vehicles. The acquisition then let's get from Microsoft.

I just wanted to follow up on the previous line of questioning there.

There is some parameters out in the public domain that will put out there by the vendor and I'm just wondering.

How much can we rely on those parameters in terms of resource size and grade in terms of kind of mine life annual production just those sorts of metrics. Thank you.

Yes.

We did.

All of our due diligence and what have you done the evaluations have been doing over the last 18 months to nearly two years, obviously, we relied on the web.

<unk> that the vendors technical team has done and they've done a lot of good work, but what we're seeing is a.

The larger opportunity.

Especially in terms of the indicative of the conceptual resource and that's something we're going to be quite focused on a lot of our investment in this year as I mentioned earlier.

His focus on out sort of exploration programs that were already.

Sort of dropped if you will of preparing but also a lot of infill drilling as well.

Actually what we think we're going to be preparing here as a larger hopefully a larger results of the property and thereafter.

<unk> optimized.

Feasibility study.

I understand your question I want to put forward that you shouldnt rely on any.

Any previous technical studies, because we're looking to optimize a lot of those studies and again, if we do have success with the drill bit.

That's obviously going to result in a different sort of protocol as well.

Hopefully that answers your question.

Okay that makes sense that also segways into my next question. So I understand that this project is fully permitted which is a huge win in the U S.

As you go about optimizing as you put it.

How much would you put that permit at risk or is everything youre going to do within the constraints of that permit.

No I would say.

More likely than not we're going to have to update some of those permits.

Which is.

The mechanisms for that and I would put forward that should be a relatively routine purchases.

As I mentioned in terms of our valuations and our diligence and what have you we have had interactions with the.

The local the local county, the regulators the agencies et cetera, we do see good support to this project until the conceptual.

Development here, so I would not see that as an issue of high concern. We think there's very good support to this and likewise in terms of the permits that are already in place.

I think we're just going to we're going to be looking at amendments.

Just have to wait and see how things go over the next 18 months.

Overall results in the conceptual design.

What we are going to be seeing here in terms of <unk> being upgraded.

Okay, Great and then just maybe switching gears one last question.

You mentioned the surplus cash would be well over the medium term and you mentioned shareholder returns.

M&A completely off the table now.

From my perspective, I think.

We consider ourselves pretty fortunate to have acquired this goes to a district project and so when I think about our focus here over the medium term I think that thats going to be very focused on execution.

Execution, obviously at OXXO to Mount Milligan, we've got a pretty compelling year here in terms of organic growth and our gold production profile on the results and profitability and free cash flow, but then the team we're going to be.

Very focused on moving forward, what we believe is going to be our next source of organic growth in terms of the go through district projects I would see a lot of our focus being on that front.

The thing what I find most challenging personally when I try and think about inorganic growth.

The current gold price environment, it's a pretty strong gold price.

Valuations reflect that accordingly, and so its really difficult when you think about potential.

Organic growth opportunity, it's difficult in terms of identifying ones that can meaningfully create shareholder value I think we were fortunate with this one we see a pretty compelling.

<unk> proposition here in the Gulf with District project fuel.

Between now and then having.

Having said all of that I think as and when we do.

Resolve the situation with <unk> and <unk>.

Cleanup.

Sure capital structure, and compressing our share count I think some terra is going to be.

Very clean.

Organization and potentially we have peer leading balance sheet, we had a very low cost profile with that organic growth in front of us. So if opportunities presented just in Tara we would obviously consider those.

In line with the fiduciary obligations and if there is something compelling that we would engage accordingly.

I'm, giving you a long answer dosing, but I think just in terms of the status quo I think a lot of our focus is going to be on the Gulf with district project here.

The short to medium term.

Thanks, that's helpful, Scott and I'll jump back in queue.

Our next question is coming from the line of Mike <unk> with Bank of America. Please go ahead.

Good morning, Scott Lawn and garden.

And that's.

Part of my question is on Gen. Four answered so I'll skip to the.

Mount Milligan studies coming out I guess Scott.

Thanks for the breakdown of the reserves and resources is very impressive MNI resource increase.

I was just wondering up.

Basically.

2021, Mount Milligan mine processed 46 grams per tonne gold as you know the greater deposit 0.38, and the greater the MNI is.

Three one.

So it seems to me that Greg.

Come up with a new plan reserves go up Greg will come down.

Maintain production of sinter.

With those assumptions as I'm tired looking.

Our expanding Mount Milligan is processing capacity to keep production steady.

Thanks for the question Mike.

We right now we are not envisioning expanding the capacity.

The mill facility.

Terms of the sort of go forward.

Gold production profile in copper production profile.

See it being relatively uniform.

Year over year, and you will see that as and when we finalize the new 43, one and we can publish that.

But having said all of that.

And then is there anything that you'd want to sort of put forward just in terms of responding to Mike.

Mike It's an excellent question, Mike I guess two things one is yes the.

43, 101 that we'll put out it will be within our permitted which is 60000 tonnes per.

Per day, so we won't be envisioning in that.

But we are doing some scoping studies right now.

To see if there is an opportunity to either debottleneck and a slight increase in our throughput or can we bolt on gold.

Gold plant.

Or even substantially increases the throughput. So we're we're in the middle of that right now for the next.

Say six months.

Just to take a look because as you indicated that as we increase the reserve resources.

Is that opportunity there.

Right now with the high.

The excellent productivity that Carol and her team are getting both in the operational activity and also cost control.

We can we can see ourselves, making a good return.

<unk> has lowered a little bit.

Okay, well, thanks for that and good luck, Scott will be happy to buy a beer in the lobby bar next Monday night.

Hi, Kara.

Thank you.

Next question coming from the line of Mike Parkin with National Bank. Please go ahead.

Hey, guys.

Yes.

My questions have been asked but coming back to gold fields I recognize that the old study you don't want us to kind of rely on but as the strip ratio of that project proposed given that youre kind of starting off.

The same area.

Is it kind of fair to assume that our strip ratio.

In and around that kind of level could be maintained with your early thoughts on what youre thinking.

Thanks, Mike.

It's hard for me to really respond to that because.

We're going to be optimizing a lot of those studies.

Investing quite a bit in the infill drilling and sort of exploration drilling has focused on potentially expanding.

Each of the three deposit and more and so then we have to sit down with all that information will be getting to that drove it.

We really look at.

Optimizing these studies and really look at how we're sequencing and phasing the development. So.

Don't really want to talk to.

Strip ratios are in such a reserve grades or productivity or what have you I think what I would be comfortable saying is that we think this is going to be quite similar to <unk>.

That's the kind of look and feel that we kind of had based on our valuations in all our modeling today.

Don't want to get ahead of the get ahead of the resource update and the feasibility study that we will be offering in publishing.

Alright, I appreciate that.

One last question on it though is in terms of what is secured in terms of permits for water access is that a limiting factor and if that's something that one of the amendments that you are looking to make.

We'd be looking to address it sounds like potentially the scale of this project could be bigger than envisioned by the previous owner.

And that would kind of suggest that you need additional water access.

We looked at that pretty extensively if that was a key focus.

Along with other assets and I think as I mentioned on Tuesday, we even invested an additional hydrology drilling we did a three day water testing of the identified aquifer.

Is that accurate there is permitted already.

So the project of the vendor they already have water supply agreements in place with the county, and the state and coming.

Coming out of that three day water tests that we invested in.

We were able to validate will substantiate that it does supply.

<unk> water.

In terms of what the project would require in terms of kind of envisioned production profile scenarios and yes. So we were quite satisfied in that regard.

If I haven't mentioned it already.

Project already does have.

Water right <unk>, yes.

We gave them sufficient.

Okay Super Thanks, guys Thats it for me.

Next question is coming from the line of Anita Soni with CIBC World markets. Please go ahead.

Hi.

Thanks for taking my questions. So firstly on <unk> I just wanted to understand in terms of the negotiation.

Finally cancellation of shares that you're talking about <unk>.

Berlin question Couture.

Currently as government is there any anything else that we should be thinking about I know there were significant tax obligations and I think there were some environmental.

Obligations would those all go away as well or would there be something outstanding that we've been offering.

Yeah.

Yes needed. So I think we put out a press release on January 3rd where we just updated the market on what are the key sort of commercial assets that have been negotiated and that will remain the same there is no change to that.

What we've been doing since that initial round of negotiations that we've now pass it over to our respective legal advisers and then now.

Documenting and papering up the whole deal.

Putting together, what we call a global settlement agreement.

What are the.

The work right now a little bit.

Negotiations is around the mechanics in terms of the how would each tardy.

Terminate and cancel any any legal claims and what have you that are being brought forward as part of this whole dispute so.

That will result in a number of conditions precedent to closing that would need to be satisfied until.

Peggy side.

As you referenced any civil claims in a criminal claims and environmental claims all of those would have to be terminated permanently and then likewise on the <unk> side in terms of the legal actions that we've launched for example, the international arbitration the chapter 11 proceedings.

We would have to.

Terminate those proceedings as well.

Prior to closing so thats really what were working on now is just agreeing on will the mechanics et cetera, and it's something that the sensitivity.

So both sides fast, but definitely for ourselves because I think as I've commented before we absolutely want this to be a clean exit.

What we are.

Very focused on right now as a win win with satisfying in that regard that's when we'll be in a position to sign the deal and announced it accordingly.

Okay and then the second question was.

Just another follow up on Mount Milligan. So just there's been a few moving parts. We had re sequencing of the plan and I think that resulted in front with our production this year.

And then I'm just trying to understand.

Hi.

Really on the life of mine plan that you are putting out in the second quarter.

Putting out.

Why would that necessitate and what are you hoping to achieve on that and as Mike referenced.

The lower reserve grade or the lower resource grade.

If you think rates are going to remain similar when would they come down to the resource greater than the reserve grade.

Okay.

Yes.

Yeah, Dan do you want to respond to that please.

I can certainly take a shot at it.

Certainly as we sequence this past year as we did our drilling.

We realize that.

There's a good chance really expanding the tipped in a number of different directions and a depth. So so we did change our locations. There are a couple of places in the mine that are higher in copper and lowering gold and vice versa. A couple of places, where it's up quite a bit higher than gold and copper so that really changed the sequencing over these next couple of years.

Anticipation of what we probably see is the is.

New haul roads new.

New pit designs.

That's to these areas.

A degree that'll be in the reserves.

We don't have those those numbers yet.

In terms of what will convert resource to reserve, but we are seeing that with the higher productivity the higher recoveries and the lower cost that we're certainly able to to have good financial results.

With that added productivity, which will be incorporated into.

The new life of mine.

Okay. Thanks, and then just from.

One last question on that though on the op costs are coming down. So that's helping you get a lower cutoff im understanding that when you look when you think about things like the sustaining capital associated with that that included when you're when you're thinking about the reserves when you do your.

Sort of breakeven analysis, I know lots of companies have different policies on that just one time historically ourselves.

No absolutely.

Yes.

Okay alright, thank you.

Our next question is coming from the line of Trevor Turnbull with Scotiabank. Please go ahead.

Hi, maybe just.

Sticking with Dan to follow up a little bit more on Mount Milligan.

Was just curious if you could make any comment you did talk about how the pits likely going to be expanding in several directions and at depth.

And obviously, we are hoping for good reserve conversion given the size of the resource increase but.

But can you talk about how the general.

Strip ratio may change relative to what we've seen I mean, it's certainly possible to expand the pit and kind of maintain the same type of strip ratio, but I wondered if there was reason to think that might change.

And then the follow up to that I guess is how do we feel about tailings capacity is.

Is that something that's easy to expand or do you have to look for new areas and then finally, the long term water plan is that maybe just remind me where you are out on the long term water plan. Please.

Okay. Thank you.

Let's start with the strip ratio again, we don't we don't have the final reserve pit yet but.

District ratio of Mount Milligan is very low.

So.

So might be a material change in that.

By Division.

In terms of tailings.

Probably most people know we did reduce the life of the mind two years ago.

With this additional resource in that with the new pit.

Don't believe we'd be looking at any.

At this time, we are not going to be expanding beyond what we had originally permitted.

Before so there won't be a tailings requirement there.

But at some point in time, if we were to continue to expand the reserves and resources.

There is there is space near mine that you could have either.

Our second tailings or.

Would be limited.

You could raise it up.

In terms of long term water.

We're in a very excellent position right now we're still we're still in the area of about $4 5 million cubic meters of water through the winter, we hardly dropped at all.

Because we have additional aquifer water that we've been calling in so we're we're very comfortable where we continue to do exploration drilling for additional tactical water, which.

Seems to be very successful so far.

On the on the long term.

Water potential of taking surface, we did get out.

The presentation of our environmental.

For example, the environmental permits.

In January .

And we continue to work on submitting all of the information required with our partners in order to be able to move that forward.

It's required.

Great right now as I indicated we were at a very stable situation with.

The <unk>.

Subsurface aquifer water and.

And so we feel we're in a very strong position and if we do require which we had been taking water. Although a limited amount this last summer.

Took 3 million cubic meters of water from a local creek, but we were permitted for six and we stopped because of the.

We had enough. So again, we're just working our way through that process, but so far it's been very positive in their first nation partners and the regulators have been working with us very closely.

Okay I appreciate that that's all I had thanks guys.

And our last question in queue is a follow up question coming from the line of Delta Barreto with Canaccord. Please go ahead.

Actually operator, all of my questions have been answered thank you.

No further questions at this time.

Okay. Thanks, operator, and again, thank you everyone for joining our call and we wish everyone. A good day and look forward to engaging in speaking and do closely moving forward. Thanks, everyone.

That does conclude the conference call for today, we thank you for your participation and ask that you. Please disconnect your lines.

Sure.

Okay.

Sure.

Okay.

Yes.

Sure.

Yes.

Okay.

Perfect.

Okay.

Thanks.

Okay.

Sure.

Yes.

[music].

Okay.

[music].

Greetings and welcome to the Fonterra gold fourth quarter and full year 2021 results conference call. During the presentation. All participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press the one followed by the four on your telephone if at any time during the concert.

Do you need to reach an operator, please press star Zero as a reminder, this conference is being recorded Friday February 20th 25th 2022, I would now like to turn the conference over to Toby Karen Treasurer and director of Investor Relations. Please go ahead. Thank.

Thank you operator, welcome to <unk> fourth quarter and full year 2021 results conference call summary slides are available on <unk> Gold's website to accompany each speaker's remarks todays call is open to all members of the investment community and media in listen only mode. Following the formal remarks, the operator will give the instructions for asking them.

Question and then we will open the phone line to questions. Please. Please note that all figures are in U S dollars unless otherwise noted.

I'd like to caution everyone that certain statements made today, maybe forward looking statements and as such are subject to known and unknown risks, which may cause our actual results to differ from those expressed or implied.

So certain measures we will discuss today are non-GAAP measures. Please refer to the to the description of non-GAAP measures in our news release and MD&A issued this morning.

For a more detailed discussion of the material assumptions risks and uncertainties. Please refer to our news release and MD&A, along with the audited financial statements and notes and all of our other filings, which can be found on SEDAR Edgar and the company's website at <unk> Dot Com and now I'll turn the call over to Scott.

Thanks, Toby and a very good day to everyone and thanks for joining us for our year end earnings results Conference call.

Toby mentioned I'm, just referencing the summary slides that are available on our website.

Starting off on slide number five I just wanted to speak to some of the key bullet points. During this uplift.

2021, it was another strong year in terms of the company wide gold production profile I can see for the full year. We finished with some 308000 ounces will go to output, which is at the very upper end of our guidance range. So a good level of performance in both of the respective operations.

The third bullet point, just given that strong level of metal production and assembly without corresponding all in sustaining cost per ounce I think there's a low competitive $649 per ounce and again I'll just highlight that that was favorably lower than our full year guidance range.

The theme for emphasis just each of the all in sustaining cost results at both Mount Milligan and offset so I think underpinning.

Portfolio that is certainly lower cost quartile.

The strong metal price environment that we're seeing in gold and copper as well as the low unitary cost just in the fourth bullet point here, we had an excellent year in terms of free cash flow generation, we generated $178 million of positive free cash flow and again that was above the upper end of guidance and favorable result.

With today's release, we have also reported at year end reserve and resource update and I think a couple of the key highlights here is we have replenished production depletion at offset operational Goldman and then also incentive that Mount Milligan operation. We have reported in terms of that gold resources, we've reported an increase of some.

One 4 million ounces and in terms of that copper resource.

We reported an increase of some 450 50 million pounds of copper.

As we communicated previously we are embarking on a new technical studies at Mount Milligan, and we expect to be releasing that in the second quarter of this year and one of the key objectives is to be.

Upgrading a lot of this new resource into reserve category, which should underpin an extension in Mount Milligan indicative Reserve life and then just lastly last bullet point as we announced on Tuesday morning.

But the exciting acquisition of Goldfield District project in Nevada, and I will speak to this.

At the end of this presentation, but again, an important development as <unk> that I think is going to underpin our organic growth profile here in the medium term just referencing the chart on the bottom chart in the bottom.

Unless is Mount Milligan, you can see the full year results there again $202 million in positive free cash flow, which is an excellent result, and then offset which is the middle chart again the column on the far right offset in 2021 generated some $112 million of positive free cash flow that also marked an important milestone in upset.

If you take the free cash flow that we generated in 'twenty, one as well as in.

Free cash flow that was generated in 2020 est.

Essentially paid back the entire upfront investment in some $200 million.

This has been a great experience worse than a real success and again just want to recognize the leadership team and some of the results that achieved there.

Moving on to slide six.

The presentation just in terms of some of the key corporate highlights.

Whose safety first.

Good year in terms of safety.

During the year achieved 2 million hours of lost time incident free operations and you can also then see that inductor achieved eight years and Thats something Creek mine in linguistics early they each achieved one year of continued.

Continuous operations without a lost time injury again important milestones and indicative that we're on the right path in terms of that shoots.

Our objective for their.

Operations. So again just wanted to commend.

Leadership teams across the organization.

Just in terms of the third bullet point as we announced at the beginning of the year, we have been engaged in negotiations with the.

Political leadership in Kurdistan regarding the dispute over the comes online in the illegal leisure.

That operation.

And generally speaking the key aspect in terms of what we are negotiating here in terms of resolving this is.

Since <unk> will be looking to relinquish legal ownership of the operation to Chicago stance and exchange cargoes that we will be looking to relinquish that 26% shareholding in some tariffs as and when that's relinquished we'd then be looking to turnaround and cancel these shares in terms of the current progress.

Right now without respective legal advisors, where we're working on negotiating the.

What I would call the global settlement agreement.

When that negotiation is finalizing being built that will be in a position to sign that and press release that accordingly, So continues to progress and hopefully we'll have more news on that forthcoming shortly.

Just on the sixth bullet point, just wanted to again just recognized Mount Milligan.

We again had a record year in 2021 and some of the mill throughput was the highest level of throughput that we've seen in the history of the operation and then you can see in terms of the free cash flow result from $202 million that was also a record year in terms of being the highest level of free cash flow is being generated by the operation.

On the eighth bullet point here third last bullet point again I spoke to this earlier, but very low cost in terms of that one and sustaining cost across the portfolio very competitive $649 per ounce and then as I mentioned earlier you can see for emphasis the portfolios 71, that's showcasing a first quartile cost structure.

Second last bullet point.

We are anticipating that a lot of this strong production momentum is going to carry into this year. We are guiding for up to 425000 ounces of gold in terms of the midpoint of our guidance and that makes her.

Pretty compelling organic growth essentially we're expecting up to 40 expecting up to a 40% increase in gold production. This year over last year and then in terms of the last bullet point here is a growing level of gold production as well as the sort of current metal price environment, we are expecting a corresponding increase in the level of free cash flow.

Generation this year, you're guiding for up to $250 million of positive free cash flows.

Present, well just in terms of the growth in our balance sheet and underlying profitability.

Within the business.

Just moving on to slide seven just in terms of the.

Brian it'll social governance profile and just some of the key updates here as I spoke to earlier safety continues to be to be absolutely Paramount and I touched on some of the good milestones that we achieved in 2021 that will continue to be an enduring focus here moving forward over the course of this year.

Third and fourth bullet points, we continue to advance our various strategies and initiatives when it comes to climate change as well as diversity equity and inclusion and making good progress in that regard and then just the sixth bullet point that Sentara is a member of the World Gold Council and we have signed up to the Gogo Council's responsible gold mining principles and win.

Currently rolling these out and implementing these principles at each of our operating and project assets.

Making very good progress there in very good stead.

To achieve full compliance.

In the coming 12 months.

With that I'm now going to turn the call over to Dan <unk>, who is our chief operating officer, and Dan can expand a little bit more on the operating highlights then over to you. Please.

Thanks Scott.

Good morning, everyone. Please move to slide nine and I'll start with the 2021 operating highlights.

I'd like to start our 2021 operating highlights the focus on safety.

In Q4, our total reportable injury frequency rate, our tripper was 189 due to a number of incidents at Mount Milligan and one more severe incident that Oxford, where contractor injured his finger.

Overall, our trip or was 1.0, too which is well above our target and it is giving them rise for a need for even further focus on our visible felt leadership in the field.

Two positive milestone that Scott spoke to in the year, where that Oxford mine did achieve 2 million work hours without lost time incidents and Endako having.

Having eight years, although on care and maintenance still has a number of activities would save about eight years and Thompson Creek and landlord facilities. Both went through the year without a lost time injury.

So <unk> continues to prioritize the health and safety and well being of its employees contractors communities and other stakeholders as Colgate is still with us.

Yes, there is other businesses, we are seeing stresses and our supply chain and on a couple of our small capital projects, but our people have been staying ahead and it is there has not.

Been any material negative effect on our operations.

On the production front, we had another strong quarter at our two operating sites, producing 91197 ounces of gold and 17 million pounds of copper at an all in sustaining cost on a byproduct credit.

From continuing operations of $591 per ounce sold.

On a full year gold ounce production came in as Scott indicated 308141 ounces, which was right at the top end of guidance with our copper production coming in at $73 3 million pounds in the middle of our guidance.

Our gold production costs, we're very competitive $604 per ounce at the bottom end of guidance.

Which was 600 to $650 per ounce and this was due to the increasingly ounce production and strong cost controls.

For 2021, our all in sustaining cost on a byproduct basis from continuing operations came in at the 649 with Mount Milligan, a very low $508 per ounce with a strong copper credits and <unk> at $668 per ounce.

Please go to slide 10, and we will specifically look at Mount Milligan.

We will continue to construct the new staged flotation reactor at <unk>.

Commissioning was setback due to the end of March partly due to the supply disruptions, but also we had safety concerns during assembly that created the need to change our contractor.

Although this did set US back we felt that we must act on all safety issues. As this is our most important value.

We completed the first step of the Mount Milligan Technical study, which which was taking our 2021 drill results and produced the optimal resource pit.

The next stage will be convert resources to reserves and produce a new life of mine 43, 101 technical study, which is on track.

For completion in the second quarter.

As part of our new life of mine, we did complete nearly 40000 meters of drilling in 68 holes. The assays were delayed but we have now included all of those and the resource update.

The Mount Milligan team had a number of excellent production achievements under the leadership of our new General manager Gerald Ford thing.

Of note in the past year was the achievement of the highest throughput for the site since the operation began in 2014.

In the table at the bottom you can see that the recovery of both copper and gold are somewhat variable quarter to quarter. This is due to ore type.

But both copper and gold recoveries were slightly better than planned due to the new grinding process control system.

We are anticipating continued improvements in our recoveries with the commissioning of the Sapphire in late Q1.

And later, a new floatation control.

System.

Turning to slide 11, we will discuss <unk> highlights.

<unk> had a very successful year and is on plan with mining in the fourth quarter.

<unk> phase two and higher grade zone four.

As well as in going into therapy the.

The higher grade output from the mine will continue through 2022.

The exploration and infill drilling of 31000 meters delivered enough additional reserves to cover the depletion for the year.

And this was with the success of planning and we are going to do 40000 meters in 2022.

<unk> is now running very much steady state. Therefore, the focus is on productivity and efficiency and thus we are putting out guidance that is a very competitive all in sustaining costs for oxo on a byproduct basis for 2022, a 425 to $475 per ounce.

In total we placed 195990 ounces on the heap of which 16200 was on year again.

Record 1100.

Sorry, 111703 ounces, which was slightly above our 2021 guidance.

Moving to slide 12, we can discuss Mount Milligan reserve and resource update.

Mount Milligan was able to complete its drilling program and updated as resources with all the assay results.

The new life of mine is planned to be released in two therefore this update we have just depleted the reserves.

Therefore did decrease from $2 1 million ounces of gold to one 8 million ounces and for copper from 837 million to 736 million pounds.

We did.

We did have a substantial increase over in Mount Milligan resources, which has now increased in terms of gold from 139 million ounces to two 7 million ounces of gold and copper increased from 521 million pounds to $974 million.

We have taken all efforts to finalize the new 43 101 in Q2 and that will take into account. This large increase in resources.

On slide 13, <unk> reserves and resources.

And obviously, we did have an infill drilling as we did through near mine exploration as well the site was able to replace its throughput of 196000 ounces with an additional 203000 analysis. Therefore, an increase in total.

<unk> of 113 to $1, one 4 million ounces.

Oxford resources also increased slightly.

230000 ounces to 283000 ounces with an average grade drop though.

Six six grams per tonne to five zero. This is due to the cutoff grade reduction of <unk> <unk>.

Zero grams per tonne to one six grams per tonne.

Moving to slide 2022 in terms of guidance for 2022, our consolidated gold production range is between 400, and 450000 ounces Mount Milligan being 190000 ounces to 210 and oxy from 210000 ounces to 240000 ounces.

For copper no Milligan is targeting to produce between 70 and 80 million pounds.

Milligan is all in sustaining guidance within that is 575% to 625 and <unk> with the higher production is looking at guiding 425 to $475 per ounce.

Moving to slide 15, or 2022, we are guiding a total capital expenditure of $95 million to $105 million of with sustaining capital is the majority coming in that $90 million to $100 million.

The non sustaining capital of only $5 million is a carryforward from 2021 to complete the staged flotation reactor at Mount Milligan.

Of note, we are looking to spend between 35 and $45 million in exploration, including exploration that Mount Milligan, a $12 million and <unk> 5 million. Additionally, in regards to the newly acquired Goldfield District project, the company expects to incur $15 million to $20 million in relation to.

Exploration activities at the project in 2022.

Overall <unk> is guiding our strong free cash flow of $200 million to $250 million at a gold price of 17, <unk> hundred dollars per ounce and copper price of $4 per barrel.

With that ill pass it over to Darren our CFO to review, our fourth quarter and 2021 financial results.

Thanks, Dan Good morning for those following on the slide deck on slide 17.

<unk> recorded 251 billion in revenue during the quarter, consisting up the map really goodbye the oxide mine and our molybdenum business unit.

Revenue consisted of 136 million gold sales and 62 million in copper sales and 40 million 40 $52 million from Apple business unit.

In the quarter a continued operation so.

<unk> thousand 312 ounces of gold.

58640, 2000 ounces from Premier.

Goodbye.

31670 gold ounces.

To your point.

We also sold $17 2 million pounds of copper in the quarter.

For the 2021 year, continuing operations sold 314, 757 ounces of gold at 21% increase year on year.

This representing the upper end of about 2021 guidance.

We also sold 78 billion pounds of copper a 3% decrease at the viability Goodbye. This is <unk>.

Attributable to the 16% decrease in copper grades processed during the quarter during the year.

This was positively offset by the 4% additional tonnes processed at the higher level of inventory held at the start of 2021.

During the quarter the company's operations average gold price realized was <unk> $104 per ounce and $3 59 per pound of copper.

This incorporates the existing stream of range over the back of a goodbye.

Cash provided by operating activities from continuing operations was $61 8 million for the quarter and 271 billion for the year.

Free cash flow from operations for the quarter was $38 7 million and $178 4 million for the year.

At an operational level that really goodbye generated 46 million in free cash flow for the quarter at 200 and water be it for the year.

The opposite monitor quarter generate 35 million in free cash flow and 112 billion for the year.

Oxyt modest now with a high grade gold sequencing is highlighted by the 2022 guidance with up to 240000 ounces of gold to be produced.

The adjusted net earnings per share <unk> 12 for the quarter at 79 for the full year.

But now speaking to slide 18.

The net earnings from continued operations was $274 <unk> in the quarter with $35 4 million and adjusted net earnings.

The earnings in the quarter attributable to operations were $59 million up contributed front about Milligan bot.

$38 7 million contributed from the <unk> mine and a 1.2 million loss for the lithium business unit.

During the year and for the quarter there were several adjustment adjusting items of significance.

The top slot.

I was speaking to the we only speak to the quarterly adjusting items.

Firstly, the Mount Milligan lot dependent reversal net of tax recorded over $117 3 million.

An initial payment was recorded in Q3 2019.

Since then the Mount Milligan.

The board has approved.

Improved with sustainable performance with a reduction in both mining and milling costs on a unit from a unit prices.

This together with the increased underlying resources at the long term copper and gold price increases.

Terra has made the decision with confidence to reverse the impairment.

We look forward to sharing the new technical report in Q of this year together with the three year consolidated update.

Secondly, the gain on sale of the Green Star property.

An additional 25 million gain was recorded in the quarter.

The trigger event between the construction decision by.

Orion resources and its JV partners.

This amount is due and payable <unk> highlighted the December 2020 23.

<unk> has not recorded the additional consideration that is attached to the production of all states of the greenstone project.

Thirdly, the income and mining tax adjustments of $132 7 million was recorded.

This is in connection to them that really goodbye now recording a deferred tax asset given the confidence management now has an income generation from the mountain really goodbye and accompanying using a three year forward look realization approach.

The other adjusting items, representing a combination of reclamation provision expense driven by the accounting standards and the need to apply current underlying discount rights together with the legal and other costs associated with it so far.

I will now move to slide <unk>.

From a cost perspective, <unk> continued operations in the quarter over quarter production cost of $550 per ounce of gold and for the year 604 per ounce sold.

All in sustaining cost on a byproduct prices of $591 per ounce and was recorded in the quarter at.

At $649 per ounce for the year.

At an asset level for the full year Mount Milligan recorded all in sustaining cost on a byproduct basis of $500 per ounce.

Outperforming the 2020 'twenty one guidance range.

530 to 580 per ounce.

Oxide recorded all in sustaining cost of $668 per ounce for the year.

Outperformance in 2000, it's within our guidance range of 730 to $780 per ounce.

The company exited 2021 with a cash balance of $947 million.

Declaring a quarterly dividend of <unk> <unk> per share.

I would like to draw your attention to the box on the left hand chart.

I would note in 2021, the free cash flow was $178 million.

We see it and it's growing.

Two 220 million in 2022, using a seven to $800 gold price and a $4 copper price that at midpoint.

Obviously conservative cost, obviously conservative industry cost environment.

Based on our sensitivity analysis disclosed in January 18th press release at what how the dollar increments in gold price movement will generate an additional 35 million cashless Tara.

Finally, the bottom right hand chart into 2022 column, our fully loaded for all in cost is $725 per ounce of gold. Therefore for each ounce of gold produced a very healthy margin.

With that I'll pass it back to Scott.

Thanks Darren.

Just referencing slide 21, just to recap as we announced this past Tuesday.

An important development here at Sentara is the acquisition of the Goldfield District project I think this is going to be important to the organization moving forward just being one of the key sources of organic growth here over the medium term.

Typically the transaction and the rationale as you can see.

As per the slide we're acquiring this project with some $175 million U S. In cash with a further milestone payment of $31 5 million Boes.

Cash falls in Terex shares at our election.

$75 million in cash obviously means that our share count will not be growing and so in terms of the value proposition here in the <unk>.

Like this to be an accretive transaction, especially when you think about how we are increasing our shareholders' gold exposure.

Resources future reserves or future incremental production.

A lot of strategic rationale in terms of pursuing this project and you can see that illustrated on the slide here.

Firstly, we think that adds a high quality development projects in our pipeline as a conventional open pit heap Leach project very similar to our operation will offset a gold mine.

We expect this to be a meaningful source of future low cost production and then in terms of future construction. We would certainly noted this project should have low capital intensity similar to our experience without operational offset.

Gold mining operation in Turkey.

He is going to improve our geographic profile. The project is located in Nevada, which is deemed a tier one mining jurisdiction and importantly to Sentara. This is going to favorably reposition our portfolio just in terms of geopolitical risk profile and I would like to think thats going to support.

Our robust valuation moving forward just in terms of valuation multiples.

In terms of the weapons to date by the vendor.

It's been very very high quality and one of the things we've certainly noticed.

It has a lot of strong support.

Terms of the communities in terms of the county in terms of the regulated within the agency. So we do expect to be at 17.

Strong license to operate here one of the.

The important aspect here and some of the industrial logic is it allows us to leverage our existing operating expertise.

As we've commented previously we see this as being very similar to our offset gold mine in Turkey, and that's going to allow us to leverage a lot of that exploration development and operating expertise and again hopefully replicate that success that we had with offsets and replicate that here with the goal to district project.

Second one right.

Think it is still under explored a number of drill ready targets that we'll be pursuing and our objective here is to be expanding the known deposits and extending the mine life and then it will certainly be a key focus here in 2022, and just lastly, we know this project well we have been evaluating this since 2020.

The level of due diligence that we have undertaken here. It has been quite extensive and then obviously underpins our confidence.

And the overall sort of opportunity here.

This year I think some of the key milestones.

Over the next 18 months some of the key milestones will be pursuing with the Gulf with District project is in the first half of 2023, we'll be publishing a sentara offered results for the property and thereafter, we'll be publishing a feasibility study and moving this project forward into.

In a position for a potential construction decision. So overall I think it's an attractive value proposition very excited about this and particularly so because this will represent a mix of organic growth is from terra in the medium term.

Just moving on to Slide 22, just my my final slide.

What I would just highlight on this slide just in the bottom right hand corner.

Darren spoke to the very good year in terms of free cash flow generation you can see the column on the far right, we generated 178 million dose or positive free cash flow.

Looking forward to this year.

Gold production with good organic growth our gold production is growing by 30% to 40% and just given the current metal price environment that should certainly make for another strong year in terms of free cash flow again in terms of the upper end of our guidance. We are guiding for up to $250 million of public free cash flow and net level of profitability and cash flow.

The generation, that's going to certainly underpinned.

Peer leading balance sheet and likewise, our investment in and go through a district project. So again I think we're well positioned in great stead.

Another year of strong performance at <unk> with that I'm going to conclude our prepared remarks, and dean or if I can pass it back over to you just to facilitate the Q&A session. Please.

Of course, if you'd like to register a question. Please press the one followed by the four on your telephone you'll hear three Tom prompt to acknowledge your request.

If your question has been answered and you would like to withdraw your registration. Please press the one followed by the three.

Once again to register for a question over the phone lines. Please press. The one followed by the four and it's just going to be a moment for the first question.

<unk>.

Our first question is coming from the line of Fahad Tariq with credit Suisse. Please go ahead.

Hi, Good morning. Thanks for taking my question can you touch a little bit on how you're thinking about capital allocation I think you touched on this right at the end of your presentation. The.

The balance sheet has $900 million of cash.

The recent acquisition costs around 200 million with another $200 million of Capex like Theres still quite a bit of capacity cannot be raised the dividend Dubai.

Buyback.

Maybe even further acquisitions, just any thought or thoughts on how youre thinking about.

The balance sheet and how to potentially.

Leverage some of that cash.

Yes, Thanks Ed.

We certainly recognize the balance sheet is in a very strong position in terms of that cash balance you could advocate that surplus to out sort of medium term requirements moving forward and thats something that myself and the board with cognizant.

We have been having a number of discussions around potential shareholder friendly.

Per share per quarter, then to <unk> <unk> per share per quarter and then most recently we've increased it to <unk> <unk> per share per quarter.

They will continue to be discussions and deliberations on that with the board.

We certainly have the opportunity to look at increasing our dividend distributions, even more so but we also we debate and deliberate on.

<unk> share count.

Reduction initiatives, all the way considering things in terms of our normal course issuer bid when do we do something more substantial in terms of a substantial issuer bid. So we will continue to evaluate these things, but the one thing that dictate the timeline around all of this is waiting until we've results. This situation.

The government of the cargo soon.

As I mentioned.

Outset of the call.

Progress is pretty good there in terms of the negotiations around finalizing a global settlement agreement, but it's not until we have.

Fully resolved that situation that we'll be able to actually embark on any sort of meaningful capital return initiatives the reason being.

Sure.

The government of <unk>.

Through their agency heavy loaded they are 26% shareholder in some tariff. So we wanted to wait until we've result that shareholding and thereafter, I think that'll put us in a good position to really embark on those evaluations in discussions around what we could be doing incrementally in terms of capital return initiatives.

Okay.

Okay, and then just switching gears to Coldfield can.

Can you just give us a rough idea of timeline like what are some milestones maybe in 2022.

Yes, so look over the next 18 months, we're in what we call the definition phase around the project and so if I look at this year. For example, we're going to be extensively focusing on infill drilling as well as our exploration investments all of that work will be going into in supporting any.

Our property resource update will be looking to publish in the first half of 2023 in parallel.

Technical team commencing.

Work on detailed engineering.

Water studies as well as other technical aspects metallurgical test work et cetera.

That work will then support.

A new feasibility study for the project and that Phase two study itself will then support a new technical report for the property.

The reason, we're doing all of that is going to make sure that with positioning the project for a construction decision over the next 18 months.

Assuming we do get that construction decision and a positive approval from the board in terms of sanctioning the construction of the project within looking at a two year construction timeline, so again really the key.

Catalyst here.

As a resource update in the first half of 2023 and then shortly thereafter, we will be publishing the.

Feasibility study for the property.

Okay, great. Thank you very much Tom.

Our next question is coming from the line of Dalton Barreto with Canaccord. Please go ahead.

Thanks, operator, and good morning, everybody.

Congratulations on vehicles. The acquisition then let's go to the microphone.

I just wanted to follow up on the previous line of questioning there.

There is some parameters out in the public domain that will put out there by the vendor and I'm just wondering.

How much can we rely on those parameters in terms of resource size and grade in terms of kind of mine life and annual production just those sorts of metrics. Thank you.

Yes.

And when we did.

All of our due diligence and what have you done the evaluations have been doing over the last 18 months to nearly two years, obviously, we relied on the work that the vendors technical team has done and they've done a lot of good work.

We're seeing as a larger opportunity.

Especially in terms of the indicative of the conceptual resort and that's something we're going to be quite focused on a lot of our investment in this year as I mentioned earlier is focus on our sort of exploration programs that were already.

So they're dropping if you will of preparing but also a lot of infill drilling as well and ultimately what we think we're going to be preparing here as a larger hopefully a larger results of the property and thereafter, a more optimized.

Feasibility study.

I understand your question I want to put forward that you shouldnt rely on.

Any previous technical studies, because we're looking to optimize a lot of those studies and again, if we have success with the drill bit.

That's obviously going to result in a different sort of profile as well so hopefully that answered your question dosing.

Okay that makes sense that also segways into my next question. So I understand that this project is fully permitted which is a huge win in the U S.

As you go about optimizing as you put it.

How much.

You put that permit at risk or is everything youre going to do within the constraints of that time.

No I would say.

More likely than not we're going to have to update some of those permits.

Which is.

The mechanisms for that and I would put forward that should be a relatively routine process.

I mentioned in terms of our valuations and our diligence and what have you we have had interactions with the.

The local county, the regulators the agencies et cetera, we do see good support for this project until the.

Conceptual development here, so I would not see that as the issue of high concern. We think there's very good support for this.

Likewise in terms of the permits that are already in place.

We're just going to be we're going to be looking at amendments, but we just have to wait and see how things go over the next 18 months.

Overall results in the conceptual design.

What we are going to be seeing here.

<unk> upgraded.

Okay, Great and then just maybe switching gears one last question.

You mentioned the.

Surplus cash will be well over the medium term and you mentioned shareholder returns is M&A completely off the table now.

From my perspective, I think.

We consider ourselves pretty fortunate to have acquired this go to a district project and so when I think about our focus here over the medium term I think that thats going to be very focused on.

Execution, obviously at OXXO to Mount Milligan, we've got a pretty compelling year here in terms of organic growth and our gold production profile and the resulting profitability and free cash flow, but then the team we are going to be.

Very focused on moving forward, what we believe is going to be our next source of organic growth and we will go through district protect I'll see a lot of our focus being on that front.

What I find most challenging personally when I try and think about getting through that.

Current gold price environment, it's a pretty strong bold bright.

Valuations reflect that accordingly, and so its really difficult when you think about potential.

And organic growth opportunities, it's difficult in terms of identifying ones that can meaningfully create shareholder value I think we were fortunate with this one we see a pretty compelling.

Value proposition here in the Gulf with District project fuel.

Between now and then having having said all of that I think as and when we do.

Resolve the situation with <unk> and <unk>.

Cleanup.

<unk> capital structure, and compressing our share counts I think <unk> is going to be.

Clean.

Organization and potentially we have a peer leading balance sheet, we had a very low cost profile with that organic growth in front of us.

If opportunities presented this in Tara we would obviously consider those.

Move outs fiduciary obligations and if there is something compelling that.

We would engage accordingly, but.

I'm, giving you a long answer dosing, but I think just in terms of the status quo I think a lot of focus is going to be on the go through district project here.

The short to medium term.

Thanks, that's helpful, Scott and I'll jump back in queue.

Our next.

<unk> is coming from the line of Mike <unk> with Bank of America. Please go ahead.

Good morning, Scott Lawn and garden.

And that's part of my question.

<unk> Zhan Qian similar answered so I'll skip to the <unk>.

Milligan study coming out I guess Scott.

Thanks for the breakdown of the reserves and the resource is very impressive MNI resource increase.

I'm just wondering.

Basically in 2021, Mount Milligan mine processed six grams per tonne gold.

You know the greater deposit <unk> 38 and <unk>.

Greg of the MNI is.

Three one.

So it seems to me that Greg.

Come up with a new plan reserves go up rate will come down.

Maintain production of sinter.

With those assumptions in September looking.

Our expanding Mount Milligan is processing capacity to keep production steady.

Thanks for the question Mike.

We right now we are not envisioning expanding the capacity.

The mill facility.

Terms of the sort of go forward.

Gold production profile in copper production profile.

See it being relatively uniform.

Year over year, and you will see that as and when we finalize the new 43, one and we can publish that.

But having said all of that.

And is there anything that you'd want to sort of put forward just in terms of responding to Mike.

Mike It's an excellent question, Mike I guess two things one is yes. The 43 101 that we'll put out it will be within our permitted which is 60000 tons.

Per day, so we won't be envisioning in that.

<unk>.

But we are doing some scoping studies right now.

To see if there is an opportunity to either debottleneck and therefore, a slight increase in our throughput or can we bolt on a.

Gold plant.

Or even substantially increases the throughput. So we're we're in the middle of that right now for the next.

Say six months.

Just to take a look because as you indicated that as we increase the reserve resources.

Is that opportunity there.

Right now with the high.

The excellent productivity that Caroline and her team are getting both in the operational activity and also cost control.

We can we can see ourselves, making a good return even at the grade has lowered a little bit.

Okay, well, thanks for that and good luck, Scott will be happy to buy you a beer in the lobby bar next Monday night.

Hi, Kara.

Thank you.

Next question coming from the line of Mike Parkin with National Bank. Please go ahead.

Hey, guys.

Yes.

My questions have been asked but going back to goldfields I recognize that the old study you don't want us to kind of rely on but is the strip ratio of that project proposed given that youre kind of starting off.

Same area is it kind of fair to assume that a strip ratio.

In and around that kind of level could be maintained with your early thoughts on what youre thinking.

Yes, Thanks, Mike.

It's hard for me to really respond to that because.

Again, we're going to be optimizing.

Those studies.

And investing quite a bit and infill drilling in sort of exploration drilling has focused on potentially expanding.

Each of the three deposit.

And so then you have to sit down with all that information at the beginning of that drove it.

Really look at.

Optimizing these studies and really look at how as sequencing and phasing the development. So.

I don't really want to talk to strip.

Strip ratios or institute reserve grades or productivity or what have you I think what I would be comfortable saying is that we think this is going to be quite similar to <unk>.

That's the kind of look and feel.

We kind of have based on all our valuations in all our modeling today that.

Just don't want to get ahead of the get ahead of the resource update and the feasibility study that we will be offering in publishing.

Alright, I appreciate that.

One last question on it though is in terms of what is secured in terms of permits for water access is that a limiting factor and if thats something that <unk>.

One of the amendments that you are looking to make.

We'd be looking to address it sounds like potentially the scale of this project could be bigger than envisioned by the previous owner.

And that would kind of suggest that you need additional water access.

No we looked at that pretty extensively if that was a key focus.

Along with other assets and I think as I mentioned on Tuesday, we even invested an additional hydrology drilling we did a three day water testing of the identified aquifer.

<unk> is permitted already.

Also the <unk>.

The vendor they already have water supply agreements in place with the county and the state.

Coming out of that three day water tests that we invested in.

We're able to validate will substantiate that it does supply sufficient water.

In terms of what the project would require.

In terms of that kind of envisioned a production profile scenarios.

So we were quite satisfied in that regard.

If I haven't mentioned it already the project already does have.

Water right.

We gave them sufficient.

Okay Super Thanks, guys. That's it for me.

Okay.

Next question is coming from the line of Andy does Tony with CIBC World markets. Please go ahead.

Hi.

Thanks for taking my questions. So firstly on contour I just wanted to understand in terms of the negotiation.

The cancellation of shares that you are talking about and.

Berlin question on Kantar.

Currently the government is there any else anything else that we should be thinking about I know there were significant tax obligations and I think there were some environmental.

Obligations would those all go away as well or would there be something outstanding that we would also need to be thinking about.

Yes.

I think we put out a press release on January 10, we just updated the market on what are the key sort of commercial assets that have been negotiated and that will remain the same there is no change to that.

What we've been doing since that initial round of negotiations that we've now pass it over to our respective legal advisers and then now.

Documenting and papering up the whole deal.

Putting together, what we call a global settlement agreement.

What are the.

One of the work right now a lot of the negotiations around the mechanics in terms of the how would each tardy.

Terminate and cancel any any legal claims and what have you that are being put forward as part of this whole dispute so.

That will result in a number of conditions precedent to closing that would need to be satisfied until.

Peggy side as you.

As you referenced any civil claims in a criminal claims and environmental claims all of those would have to be terminated permanently and then likewise on the <unk> side in terms of the illegal actions that we've launched for example, the international arbitration the chapter 11 proceedings.

We would have to.

Terminate those proceedings as well.

Prior to closing so thats really what were working on now is disagreeing on all the mechanics et cetera, and it's something that the sensitivity.

Both sides fast, but definitely for ourselves because I think as I've commented before we absolutely want this to be a clean exit.

What we are.

Very focused on right now as a win win with satisfying in that regard that's when we'll be in a position to sign the deal and announced it accordingly.

And then the second question was.

Just another follow up on Mount Milligan. So just there's been a few moving parts. We had re sequencing of the plan and I think that results in production this year.

And then I'm just trying to understand.

Hi.

Really on a life of mine plan that you're putting out in the technical report that you are putting out.

Why would that necessitate and what are you hoping to achieve on that and as Mike referenced.

The lower reserve grade or the lower resource grade.

Okay.

The grades are going to remain similar when would they come down to the different source cleaner than reserve grade, presumably that would have to eventually.

Yes, Dan do you want to respond to that in place.

I can certainly take a shot at it.

Certainly as we sequence this past year as we did our drilling.

We realize that.

There's a good chance really expanding the pit in a number of different directions and a depth. So so we did change our locations. There are a couple of places in the mine that are higher in copper and lowering gold and vice versa couple of places, where it's quite a bit higher gold and copper.

That really changed the sequencing over these next couple of years in anticipation of what we probably see is the is.

New haul roads new.

New pit designs and access to these areas in terms of the grade that will be in the reserves.

We don't have those those numbers yet in terms of what will convert resource to reserve, but we are seeing that with the higher productivity the higher recoveries and the lower cost debt.

We're certainly able to to have good financial results.

With that added productivity, which will be incorporated into the.

The new life of mine.

Okay.

And then just.

One last question on that though on the op costs are coming down. So that's helping you get a lower cutoff grade I'm understanding that when you look when you think about things like the sustaining capital associated with that that included when you're when you're thinking about the reserves when you do your.

Sort of breakeven analysis, I know lots of companies have different policies online I was just one time historically ourselves.

No absolutely.

Yes.

Okay alright, thank you.

Our next question is coming from the line of Trevor Turnbull with Scotiabank. Please go ahead.

Hi, maybe just.

Sticking with Dan to follow up a little bit more on Mount Milligan.

Was just curious if.

If you could make any comment you did talk about how the pits likely going to be expanding in several directions and at depth.

Obviously, we're hoping for good reserve conversion given the size of the resource increase but.

But can you talk about how the general.

And then the follow up to that I guess is how do we feel about tailings capacity.

Okay. Thank you.

Let's start with the strip ratio again, we don't we don't have the final reserve pit yet but.

The strip ratio of Mount Milligan is very low.

So they are there.

So might be a material change in that.

Without a division.

In terms of tailings.

As probably most people know we did reduce the life of the mind two years ago.

With this additional resource in that with the new pit.

Don't believe we'd be looking at any.

At this time, we are not going to be expanding beyond what we had originally permitted.

Before so there won't be a tailings requirement there.

But is that at some point in time, if we were to continue to expand the reserves and resources.

There is there is space near mine that you could have either.

Our second tailings or.

Would be limited.

Hi, you could raise it up.

In terms of long term water.

We're in a very excellent position right now we're still we're still in the area of about four 5 million cubic meters of water through the winter, we hardly dropped at all.

Because we have additional aquifer water that we've been calling in so we're we're very comfortable where we continue to do exploration drilling for additional aquifer water.

Seems to be very successful so far.

On the on the long term.

Water potential of taking surface, we did get out.

The presentation of our environmental.

For example, with the environmental permits.

In January .

And we continue to work on submitting all of the information required with our partners in order to be able to move that forward.

It's required.

Great right now as we indicated we were at a very stable situation with.

The <unk>.

Subsurface aquifer water.

And so we feel we're in a very strong position and if we do require which we have been taking water. Although a limited amount this last summer.

Took 3 million cubic meters of water from a local creek, but we were permitted for six and we stopped because we.

We had them up so again, we're just working our way through that process, but so far it's been very positive in their first nation partners and the regulators have been working with us very closely.

Okay I appreciate that that's all I had thanks guys.

And our last question in queue is a follow up question coming from the line of Dalton Barreto with Canaccord. Please go ahead.

Actually operator, all of my questions have been answered thank you.

No further questions at this time.

Okay. Thanks, operator, and again, thank you everyone for joining our call and we wish everyone. A good day and look forward to engaging in speaking and do closely moving forward. Thanks, everyone.

That does conclude the conference call for today, we thank you for your participation and ask that you. Please disconnect your lines.

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