Q4 2021 Alexco Resource Corp Earnings Call
Thank you for standing by. This is your conference operator. Welcome to the Alexco Resource Corp full year 2021 results conference call.
Thank you for standing by this is your conference operator, welcome to the electrical Resource Corp. Full year 2021 results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded.
As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.
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I would now like to turn the conference over to Paul Jones.
The conference over to Paul Jones.
Paul Jones: Senior Vice President, Corporate Development, please go ahead.
Senior Vice President corporate development. Please go ahead.
Good morning, ladies and gentlemen, today is Monday March 21st and I Welcome you to the <unk> resource fourth quarter and full year 2021 results conference call.
Paul Jones: Good morning, ladies and gentlemen, today is Monday, March 21st, and I welcome you to the Alex go resource 4th quarter and full year 2021 results conference call. This call is being webcast and a recording can be accessed through the event and webcast section of our website at resource dot com later today.
This call is being webcast and a recording can be accessed through the events and webcast section of our website Calexico resorts Dot com later today.
Paul Jones: Our website also contains our most recent news releases and our financial statements for the quarter ended December 31st, 2021.
Our website also contains our most recent news releases and our financial statements for the quarter ended December 31, 2021, all amounts referenced today are in Canadian dollars unless otherwise indicated.
Paul Jones: All amounts referenced today are in Canadian dollars unless otherwise indicated.
Paul Jones: Today, our Chairman and CEO , Clint Nauman, will discuss our most recent results and he will be joined by our President, Brad Thrall, and our CFO , Mike Clark, during the question and answer period.
Today, our chairman and CEO Clinton Eldon will discuss our most recent results and he will be joined by our President Brad Thrall and our CFO , Mike Clark during the question and answer period.
Paul Jones: Please be reminded that some statements made today may constitute forward-looking information within the meaning of applicable securities regulations.
Please be reminded that some statements made today may constitute forward looking information within the meaning of applicable securities regulations.
Paul Jones: Past performance discussed today is not indicative of future results, and our business involves several risks that could cause results to differ from projected.
Performance discussed today is not indicative of future results and our business involve several risks that could cause results to differ from projections.
Speaker Change: Investors are encouraged to review the disclosures pertaining to risks that can be found in our most recent regulatory filings available on our website on CDAR and EDGAR. I will now leave you with Clint Nowman.
Investors are encouraged to review the disclosures pertaining to risks that can be found in our most recent regulatory filings available on our website and on SEDAR and Edgar I will now leave you with Clinton element.
Thank you Paul.
Clint Nowman: Thank you, Paul. Good morning, good afternoon, and thank you to those who are joining our call today.
Good morning, good afternoon, and thank you to those who are joining our call today.
Clint Nowman: I'm going to keep my comments brief this quarter. Our performance in Q4 and into the early parts of 2022 has been well short of expectations, as you have seen from our news release.
I'm going to keep my comments brief this.
This quarter.
Our performance in Q4 and into the early parts of 2022 has been well short of expectations. As you have seen from Andrew's released earlier this morning.
However, in my short time today I wanted to assure you that we have weathered the most challenging issues and we are cautiously optimistic that we will post improved operating conditions in performance as we move into the balance of 2022.
Clint Nowman: However, in my short time today, I want to assure you that we have weathered the most challenging issues and we are cautiously optimistic that we will post improved operating conditions and performance as we move into the balance of 2022. Firstly, from a.
Firstly from a purely pragmatic viewpoint well.
Clint Nowman: While the impact of COVID was significant at site in December and extended into January , we were further impacted by serious supply chain issues with respect to critical spares in February , leading to reduced equipment availability and much slower underground progress.
Well the impact of Covid was significant at site in December extended into January we were further impacted by serious supply chain and the serious with respect of critical spares in February .
Leading to reduced equipment availability and much slower underground progress.
Clint Nowman: The fact of the matter is that we can and must do better anticipating and overcoming these types of problems.
The fact of the matter is that we can and must do better anticipating yet.
These types of problems.
As mentioned at the outset I'm cautiously optimistic that the challenges we faced recently are in the rearview mirror.
Clint Nowman: As mentioned at the outset, I'm cautiously optimistic that the challenges we faced recently are in the rearview mirror and that we are well positioned to deliver Canada's only primary silver mine to full production.
And then we are well positioned to deliver Canada journey primary silver mine to full production.
Sure Brett.
Clint Nowman: At Birmingham and Flaming Mark, we've completed more than 2,300 meters of lateral development and are now in ore at both deposits.
Having him a flame a mark with completed more than 2300 meters of lateral development and are now in a war at both deposits.
Clint Nowman: Specifically, we currently have four ore headings on two levels available at our Flaming Moth deposit, and we continue with long-haul retreat mining at our first large-dome in the Birmingham deposit.
Specifically, we got them you have four or so on two levels available in a flame and moth deposit.
You may continue with long haul retreat mine, it and get that first lodged I've been the bermingham deposit.
Our upgrades and investments in the district barrels have been completed and when we've had sufficient or available at several campaigns at and above our desired capacity of 400 tons per day, all while meeting or exceeding our metallurgical model well silver recoveries.
Clint Nowman: Our upgrades and investments in the district mill have been completed, and when we've had sufficient ore available, we've had several campaigns at and above our design capacity of 400 tons per day, all the while meeting or exceeding our metallurgical model for silver recoveries.
Clint Nowman: However, we are running approximately three to four months behind our schedule, which originally saw us achieving design capacity in Q1 2022.
However, we are running approximately three to four months behind schedule, which originally stores achieving design capacity in Q1 2022.
Clint Nowman: Clearly, this has put pressure on our balance sheet. And in that regard, we have available to us a $10 million US prepayment revolving credit facility with a concentrate off-taker from which we are currently drawing $5 million US and can access the remaining $5 million if necessary.
Clearly this has put pressure on our balance sheet and in that regard do you have available to us at 10 billion dollar U S prepayment rabobank credit facility with some trade off taker from which we have currently drawn 5 million adult use and can access the remaining $5 million if necessary.
Clint Nowman: Accessing additional working capital is simply a function of our success in being able to deliver the targeted oil volumes to the mill to generate revenue offsets.
Existing it Theres no working capital that's simply a function of our success in being able to deliver that target at all volumes to the mill to generate revenue offsets.
Clint Nowman: As we speak today, we do see improved ore availability, improved cycle times underground, and improved delivery of ore to the mill. It is on us to maintain and increase this ore delivery in Q2 2022.
As we speak today, we do see improved ore availability improved cycle times on the ground and improved delivery of ore to the mill. It is on us to maintain and increase this all delivery in Q2 2022 .
Clint Nowman: Meantime, we are rescheduling our mine plan and anticipate being in a position to provide guidance for 2023 production in May, a couple of months from now.
Meantime, we are rescheduling, our mine plan and anticipate being in a position to provide guidance for 2020 production in May a couple of months from now.
Meantime, we have on boarded and trained there aren't complete underground mining costs as well as build out a team of highly motivated and skilled operators.
Clint Nowman: Meantime, we have boarded and trained our own complete mining force, as well as build out a team of highly motivated and skilled service operators.
Clint Nowman: I do want to commend our team for their dedication and steadfast commitment to the project.
I do I command, our team for their dedication and steadfast commitment to the project.
Clint Nowman: As a team, we have overcome a great number of obstacles. Improving results, I expect to see over the next few months, is directly related to their efforts.
As a team we have overcome a great number of obstacles improving results I expect to see over the next few months is directly related to their to their efforts.
Clint Nowman: Today, we also announced some short-term production guides for Keno Helm. We now expect to produce between 75,000 and 100,000 ounces of silver in Q1 2022, and between 450,000 and 550,000 ounces of silver in Q2 2022.
Today, we also announced some short term production.
Keno Hill, we now expect to produce between 75 and 100000 ounces of silver in Q1, 2022 and between 450550 ounces of silver in Q2 2022.
Furthermore, as I previously mentioned, we anticipate being able to provide second half 'twenty to do guidance in conjunction with our Q1 financial report on May 12.
Clint Nowman: Furthermore, as I previously mentioned, we anticipate being able to provide second half 2022 guidance in conjunction with our Q1 financial report on May 12.
I'd be remiss, if I didn't take a brief moment when I went to comment on the success, we've had on the exploration front.
Clint Nowman: I'd be remiss if I didn't take a brief moment to comment on the success that we've had on the exploration front.
Clint Nowman: specifically after completing approximately 17,700 meters of drilling focused on the Birmingham deeps. On January the 18th, we announced a 43% increase in Birmingham's indicated resource and a 70% increase to its inferred out.
Specifically after completing approximately 17700 meters of drilling focused on the Birmingham Deeps on January 18th we announced a 43% increase in Birmingham as indicated resource and a 70% increase in fair analysis.
Clint Nowman: Birmingham now has over 47 million ounces of indicated mineral resources at a grade of 939 grams per tonne silver.
Birmingham now has over 47 million ounces of indicated mineral resources at a grade of 939 grams per tonne silver.
Clint Nowman: with inferred resources of nearly 20 million ounces at a combined of 735 grams per tonne, so.
It was inferred resources are up nearly 20 million ounces at a grade of 735 grasp and so.
Clint Nowman: By any measure, this is a stellar result, and in 2022, we'll be conducting an additional 15,000-meter program.
By any measure this is a stellar result, and in 2022 we'll be conducting an additional 15000 meter program.
Clint Nowman: To identify and test areas exhibiting geological mineralization signatures similar to our Birmingham discovery, starting with targets adjacent to the current reserve area.
To identify and test area is exhibiting geological mineralization sectors sake that just similar to Bermingham discovery, starting with dog is adjacent to the current reserve area.
Clint Nowman: Meantime, as we have previously mentioned, as part of rescheduling 2022 production at Birmingham, we'll be looking at longer range development alternatives to reach the deeper levels of this deposit and potentially accessing this new deeper discovery zone sooner rather than later.
In time as we have previously mentioned as part of his scheduling 2022 production at Bermingham, we will be looking at longer range development alternatives to reach the deeper levels of this deposit.
And potentially access thing this new deep discoveries sooner rather than later.
Clint Nowman: We've made a lot of progress over the last 18 months, and I expect the next few quarters will be critical for Laxco at Keener Hill.
We made a lot of progress over the last 18 months and I expect next few quarters will be critical for Lex Goh at Keno Hill.
Clint Nowman: Lastly, I wanted to take this opportunity to thank our shareholders also for their patience and support of Lexco as we delivered Dino Hill back to full production.
Lastly, I wanted to take this opportunity to thank God shareholders also for their patience and support of blacks. Good as we delivered you know him back to full production.
With that brief statement I'd like to ask the operator to open the call for <unk>.
Clint Nowman: With that brief statement, I'd like to ask the operator to open the call for questions.
<unk>.
Speaker Change: Thank you. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request.
Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request. If you are using a speakerphone. Please pick up your handset before pressing any Keith.
Speaker Change: If you are using a speakerphone, please pick up your handset before pressing any key.
Speaker Change: After we draw your question, please press star then 2. We will pause for a moment as callers...
We draw your question. Please press Star then two we will pause for a moment as Scully China Q.
Speaker Change: The first question comes from Jake Sikulski of Alliance Global Partners. Please go ahead.
The first question comes from Jake Sokolowski of Alliance Global Partners. Please go ahead.
Yeah, Hey, guys. Thanks for taking my questions.
Jake Sikulski: So, you know, you've obviously mentioned the ramp up some delayed a bit due to coven restrictions. I'm just curious if this has had any impact on your plans to work towards an updated mind plan around mid year. I mean, I'm just thinking, working with consultants and other vendors that have you seen a delay in in that as well.
So you know you've obviously mentioned the ramp up has been delayed a bit.
Due to Covid restrictions I'm just curious if that's had any impact on your plans to work towards an updated mine plan around mid year, I mean, I'm, just thinking working with consultants and other vendors. So have you seen.
A delay in that as well.
Speaker Change: Yeah, hey Jake, thanks for the question. I'll let Brad comment on this too, but firstly, you know, still our intention obviously to, you know,
Yeah, Hey, Jake Thanks.
Thanks for the question.
I'll, let Brad comment on this too, but especially you know still a change and obviously too.
You know too.
Brad Thrall: you know, turn out a new life of mine plan, excuse me. But in the meantime, as you might appreciate, we're focused on trying to reschedule, not put out new plans, but simply reschedule production for the remainder of 2022. So that'll be the first priority. And from that, well, we'll roll into a reformatting of the life of mine plan.
You know to that life of mine plan.
Excuse me.
And but in the meantime, as you might appreciate we're focused on.
Trying to reschedule not put out new plans, but simply reschedule production.
A 2022 so that'll be the first priority.
That yeah.
Well, we'll roll into a REIT.
We are reformatting the life of mine plan.
Yep Yep.
Speaker Change: Yeah maybe a little bit more Jake. I mean we've actually started a little bit both internally as well as some external consultants just starting that process of an updated plan incorporating the Birmingham Deep. So yeah it'll be ways out still but we have started some of that work.
Little bit more Jake I mean, we've actually started a little bit both the both internally as well as some external consultants I'm just just starting that process.
Well have an updated plan incorporates the Birmingham deep so yeah, it'll be it'll be a ways out still.
We have started some of that work.
Okay fair enough.
Speaker Change: And then on exploration, you know, I saw that you guys outlined the 15,000 meter surface program.
And then on exploration yacht I saw that you guys outlined the 15000 meter surface program is any of this in the target.
Speaker Change: Is any of this aimed at targets that you've talked about in the past or are these all truly new adjacent targets to Birmingham?
Talk about in the past or are these are these all truly new adjacent targets to Birmingham.
Speaker Change: Yeah, you know, the plan, Jake, is to start a war.
Yeah.
The you know the.
The plan Jack is to start or.
Speaker Change: I guess, reconnaissance-type program in part.
I guess recognizance diet program are in part.
Speaker Change: What we have found is that over the course of time, we've drilled about 150,000 meters.
What we have found is that over the course of time, we've drilled about 150000 meters.
In the district of that only about 20% has ever been.
Speaker Change: Of that, only about 20% has ever been testing new targets. The rest has gone into infill drilling.
As being new targets the rest has gone in to infill drilling.
Now we have you know a.
Speaker Change: Now, we have a significant number of ounces in front of us, both from a reserve perspective and also a resource perspective. We have the runway to start looking at these numerous other targets in the district.
A significant number of ounces in front of us, but it's from a reserve perspective, and also a resource perspective, we have.
The runway to start looking at these numerous other targets in the district.
Speaker Change: and that's what that 15,000 or the majority of that 15,000 meters is dedicated to. So we know that Birmingham Hector Calumet trend is very productive so we'll be doing some more work further to the west along that.
And that's what that 15000.
Majority of that 15000 meters is dedicated to so we know that bermingham Hector Calumet trend as very productive. So we will be doing some more work.
Further to the west along that trend.
Speaker Change: We're going to start work down on the Husky-Silverking trend, which is an equally attractive, very high-grade, high-fluid flow system that we have not really tested at all.
Start work.
Down on the Husky silver King trend, which is equally attractive.
Very high grade high fluid closed system.
We have not really tested at all.
Speaker Change: We're going to go over to Lucky Queen probably briefly. There's obvious targets over there adjacent to development that's already in place.
We're going to go over to Lucky Queen.
Briefly there's obvious target, but they are adjacent to development that's already in place.
Speaker Change: We'll come back to Inca, which sits on the side of the whole road.
We'll come back to incur which sits on the side of the haul road.
Speaker Change: and have potential for, you know, a smaller, by our account, smaller but high-grade deposit.
And has the potential for you know a small or buy out accounts smaller but high grade deposit.
Speaker Change: that's very accessible and do those types of things. So it's more of a reconnaissance program and it's based on the thesis that if we do.
That's very accessible and and do those types of things. So it's more of a reconnaissance program and is based on the thesis that if we do 12 to 15000 meters of drilling each and every year over the course of time, we will find more upbeat as Birmingham flame and moth type disc.
Speaker Change: 12,000 to 15,000 meters of drilling each and every year over the course of time, we'll find more of these Birmingham or Flaming Moth type discoveries and we'll have the runway.
And we'll have the runway to drill them out infill drill them and permit them and get them into the production line.
Speaker Change: to drill them out, infill drill them, and permit them and get them into the production line. So that's a change of tactic for us.
So that's a it's a change of tactic for us.
Speaker Change: But it's certainly leveraging on the success that we've had in the past has bought us, you know, these several years of time to figure out where the next large deposit is going to be.
But it certainly leverage on the success we've had in the past its borders.
These several years of off time to figure out where the next large deposits gonna be.
Speaker Change: Okay, that's that's helpful. Um, and then just just lastly, I mean, we've obviously seen a strong increase in base metal prices, um, over the last few quarters. Um, and I'm thinking more towards the end of this year. Has there been any thought into hedging?
Okay. That's helpful.
And then just lastly, I mean, we've obviously seen a strong increase in base metal prices over the last few quarters and I'm thinking more towards the end of this year has there been any thought into hedging.
Speaker Change: Uh, out some of that exposure at these prices once once the ramp up is complete. I'm just kind of curious what the house view is there.
Out some of that exposure at these prices once once the ramp up is complete I'm just kind of curious what the house view is there.
You know I mean, it's a good point.
Speaker Change: I mean, it's a good point and we haven't actually, you know, being, you know, focused on.
And we haven't actually been.
You know focused on that.
Speaker Change: I will draw your attention to the fact that, ironically, there are deposits, you know, at Keno Hill, which have more base metals, but it's still random.
I will draw your attention to the fact that ironically there are deposits are you know at Keno Hill, which have more base metals Butler show Miranda.
Speaker Change: And, you know, sometimes we've kicked around the possibility of taking another look at those. But, I mean, it's a good point, and it's something that certainly we'll take into consideration as we.
And you know sometimes you kicked around the possibility of taking another look at those but I mean, it's a good point.
And that's something that certainly we'll take under consideration as we are you know as we get back onto the production pop here.
Speaker Change: you know, as we get back on to the production prop here.
Got it okay. That's all for me thanks again.
The next question comes from Joseph require off Roth Capital Partners. Please go ahead.
Speaker Change: The next question comes from Joseph Rigor of Roth Capital Partners.
Hey, Clinton team. Thanks for taking my questions I guess first thing on the ramp up you sound pretty confident that in Q2, there's going to be.
Joseph Rigor: Hey Clinton team, thanks for taking my questions. I guess first thing on the ramp up, yes I'm pretty confident that in Q2 there's gonna be a pretty sharp uptick in.
Pretty sharp up tick in underground mining rates, and then ore to the mill.
Joseph Rigor: underground mining rates and then ore to the mill.
Joseph Rigor: I guess one, is there anything different that you're going to do in Q2 other than just hopefully not having to have more COVID problems?
I guess, one is there anything different that youre going to do in Q2 other than just hopefully not having to have more COVID-19 problems and then two if you do you have any other recurring issues are there any external options you guys can look at to get that ramp up done.
Joseph Rigor: And then, two, if you do have any other recurring issues, are there any external options you guys could look at to get that ramp-up done?
Joe.
Take a shot at that.
Speaker Change: I guess several things that we're certainly focused on and that we feel, you know, put us in a, you know, a much stronger position, certainly equipment availability, you know, trying to get ahead of the game and capital spares and.
Mike I guess several things that were certainly focused on and that we feel.
You know a much stronger position certainly equipment availability, you know I'm trying to get ahead of the game and capital spares and.
Speaker Change: And on the maintenance group and we are now right now for the first time, quite honestly, at a point where we have essentially a fully staffed maintenance group and a fully staffed mine operations, the underground miners. So it's taken us a long time to
On the maintenance group, but we we are now right now for the first time quite honestly.
Where we have essentially a fully staffed maintenance group and are fully staffed mine operations. The underground mine. So it's taken us a long time to get to this point in terms of recruitment and retention.
Speaker Change: to get to this point in terms of recruitment and retention. So that's a big part of it, for sure, is, you know.
So that's you know that's a big part of it for sure as you know I've been qualified miners underground at the face on a day to day basis as well as be available you know specialists on the maintenance side equipment availability and the other big point, obviously as you know we know how.
Speaker Change: having the qualified miners underground, at the face, on a day-to-day basis, as well as the available specialists on the maintenance side for equipment availability. The other big point obviously is we now have fully developed two sub-levels at Flamin' Moth, the 835 and the 815, and those levels will continue to open up.
Fully developed to two sub levels at flame and moth the 835 and 815.
And those levels will continue to open up.
Speaker Change: And we'll continue to drive the ramp deeper at both the mines, which again, will open up more more levels. So it's all about, you know, opening up more levels, which opens up more or faces, which gives us more flexibility. So that if we do have issues at a particular face, we have other places to go.
And we will continue to drive the round the deeper at both the mines, which again will open up more more level. So it's all about you know opening up more levels, which opens up more workplaces, which gives us more flexibility. So that if we do have issues with other particular face we have other places to go.
Okay and and.
Speaker Change: Any external options if you need them? Is there any, you know, contract miners that you could hire in the area?
Any external options. If you need them is there any you know contract miners are you could hire in the area.
Speaker Change: You know, we have looked at contractors before, and actually last week, you know, we did employ a contract miner for a shorter time period to help us get over a hump. That certainly is an option. We are just finishing, we're about 45 days away from finishing our second major vent raise to surface using a contractor. But you're right, that is an option that's always on the table and is available, but we haven't made that decision yet.
We have looked at contractors before and actually last year, we did deploy a contract miner for a little.
Shorter time periods to help us get over the hump.
That certainly is an option. We are just finishing were about 45 days away from finishing our second major event raised surface using our contractors, but you're right that that is an option. That's that's always on the table.
And and it is available, but we havent made that decision yet.
Okay. Thanks, I'll turn it over.
Speaker Change: The next question comes from Nicholas Dion of Cormark Securities. Please go ahead. Hey guys, glad to hear that things are
The next question comes from Nicholas beyond off Carmike Securities. Please go ahead.
Hey, guys I'm glad to hear that things are looking up I'm wondering if you can maybe provide what the developments are the advance rates are in March. So we can kind of see how those are improving into Q2.
Nicholas Dion: Yeah, in terms of both of the minds again, we are just now resuming that the main access ramp. Main, and that was intentionally put on pause because we had multiple faces of, you know, at level accesses that flame them off as well as a number of.
Oh, yes in terms of both of the minds again.
Well Mark.
We are just now resuming that the main access ramp maintenance that was intentionally put on pause because we had multiple basis.
At that level, accessing that flame and moth as well as a number of <unk>.
Nicholas Dion: of infrastructure projects that had to be still completed.
Infrastructure projects that had to be still completed.
Nicholas Dion: So our objective at both Flaming Macaw and Birmingham is to shoot for two and a half meters per day, which we think is a pretty reasonable, achievable target. So at Birmingham, the main access ramp is underway, and those are the type of numbers that we see sustainable, you know, as we finish up March and go into Q2. So that would equate to essentially 75 meters per month of primary waste development. So that would equate to essentially 75 meters per month of primary waste development.
So our objective at both flame and moth in Bermingham is to shoot for two and a half meters per day, which we think is a pretty reasonable achievable target.
So at Bermingham the main access ramp is underway.
The type of numbers that are there.
We see sustainable as we finish up March go into Q2.
And that would equate to assess from 75 meters per month.
The primary waste development.
Okay great.
Do you have that.
Sorry, do you do more of that.
Speaker Change: Yeah, that would be per mine, 75 meters per month per mine.
Yeah that would be per mile 75 meters per month per mine.
Got it.
And do you have a target on the number of ore faces you wanted available at flame and moth in order to achieve your run rate.
Speaker Change: I think we're essentially there at the 815-835, but we are, as Quint mentioned, we are re-engineering that plan for that level. There's some opportunity for an increase in tons in that area based on some previous infill drilling that we did last year. And then once we resume the ramp, we'll be going down to the next sublevel, which is the 795.
Hum.
I think we're essentially there are 15 835, but we are as Clint mentioned, we are be reengineering that plan for that level theres, some opportunities or increase in tons in that area based on some previous infill drilling that we did last year.
And then once we resume the ramp will be going down to the next sub level, which is the 795.
Speaker Change: And then at Birmingham, we're less than 70 meters away from the 1120, which is one of the highest grades of the mine. So I would hope by the end of
Then at Birmingham, where less than 70 meters away from the 11 20, which is one of the highest grades of the mine. So I would hope by the end of <unk>.
Speaker Change: You know, by the end of Q2, you know, and we're going to have, you know, four or five spaces or more that flame them off.
At the end of Q2.
No go ahead.
Yes.
You know four or five stations are more at flame and moth.
Speaker Change: Um, and we'll have the 1120 at Birmingham opened up as well. Okay, perfect and then.
And we'll have the 11th 20th Birmingham opened up as well.
Okay, Perfect and then maybe just one more question on the balance sheet.
Is there any additional flexibility in terms of noncore.
Noncore assets, you can monetize or do you have any remaining equity positions that you could monetize.
Yeah.
Yeah.
Speaker Change: Yeah. Hi, Joe. Yeah, we're, we're obviously, you know, looking at all the alternatives that we have at present time. So.
Yeah, Hey, Joe.
Yeah, we're we're obviously looking at all the alternatives.
We have at present time so.
Speaker Change: Yeah, we have offloaded our investment in Banyan up to this point and still have a significant retained interest there. So, yes, I mean, we're doing all the prudent things to focus our efforts 100% on getting to sustainable throughput here at Keenum Hill. Thank you.
Yeah, we have up closer to our investment in the in band in after that point and still have a significant retained interest there. So so yes, I mean, we're doing all the prudent things.
To focus 100% on getting to sustainable throughput here.
At Keno Hill.
Okay, great. Thanks, that's it for me.
Speaker Change: Our next question comes from Martin O'Malley of O'Malley Investments. Please go ahead.
Our next question comes from Martin O'malley F. O'malley investments. Please go ahead.
Martin O'Malley: Gentlemen, my question is, your head grades fell dramatically in the fourth quarter of 2021, and I just wondered what was going on there.
Gentlemen.
My question is your head grades fell dramatically in the fourth quarter of 2021 and I just wondered what was going on there.
Martin O'Malley: Yeah, that's a Martin that that was, you know, by design. I mean, that's that's a transition period, you know, as we transitioned away from.
Yeah, that's good Martin that was by design.
That's a transition period.
You know as we transitioned away from the.
Martin O'Malley: the Belpino mine and milled out those remaining stockpile tons and we transitioned them to almost predominantly long-haul tons.
The the belt pedal mine and build out those remaining stockpile tonnes and we've transitioned them to almost predominantly long haul tons.
Martin O'Malley: at the Birmingham mine. Long haul does have a higher level of dilution associated with it. This is our very first long haul that we have done at Birmingham. There is a learning curve that we are undergoing right now. We are taking on probably a higher amount of dilution than
At at the Bermingham mines. So you know long haul does have a higher.
Level of dilution associated with it.
This is our very first long haul that we've done at Birmingham, just there is a learning curve that we're undergoing right. Now you don't see we are taking on probably a higher amount of dilution than the original design was 33%. So it's a combination of kind of transitioning away from bell Kino and into a purse lawful.
Martin O'Malley: an original design, which was 33%. So the combination of transitioning away from Belkino and into our first long haul.
Martin O'Malley: I would anticipate seeing that same trend for a bit in Q1.
I would anticipate seeing that same trend for a bit in Q1.
Martin O'Malley: Um, the, you know, because of the or drives that we have at flame and Ma, we're coming into the ends of the first of those or drive at the 835.
No because the ore drives that we have at flame and moth.
Coming into the end of the first of those or drive 835, and which means that the generally lower grade on the hands of resort drives until we get into the into a higher grades and into the middle of these things. So it's not certainly not unexpected.
Martin O'Malley: which means that they're generally lower grade on the ends of these drives until we get into the higher grades, into the middle of these things. So, it's not certainly not an.
Thank you.
Martin O'Malley: This concludes the question and answer session. I would like to turn the conference back over to Clint Nelman for any closing remarks.
This concludes the question and answer session I would like to turn the conference back over to Clint Nauman for any closing remarks.
Clint Nelman: Thank you operator. I look forward to keeping you all updated on our progress and look forward to speaking to many of you again soon. Thank you.
Thank you operator, I look forward to keeping all updated on our progress and look forward to speaking to many of you again soon thank you.
Speaker Change: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Mhm.
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