Q1 2022 Lundin Mining Corp Earnings Call
Good day, and thank you for standing by welcome to Lundin mining first quarter 2022 results call and webcast. At this time all participants are in a listen only mode. I started the speaker's presentation. There will be a question and answer session. So ask a session of questions you're in.
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I would now like to hand, the conference over to your first speaker today, Peter Rocking Dale <unk>, President and CEO . Please go ahead Sir.
Thank you operator, and thank you everyone for joining lundin Mining's first quarter 2022 results call.
I'll draw your attention to the cautionary statements on slide two as we will be making several forward looking comments throughout the prepared remarks and likely during the Q&A as well on the call to assist me with the presentation and answer questions. Our Ginnie Mcgee, our senior Vice President and Chief Financial Officer, and Peter Richardson, Our senior Vice President and Chief operating Officer.
Safety is the foremost of our values along with respect integrity and excellence, we hold health and safety is our top priority in everything we do with our goal being zero harm. We will continue to pursue this goal and truly believe that all work related injuries are preventable.
Fortunately there wasn't fatal accident at our Neighbor's club O operation in the first quarter, we continue to support the family and our colleagues endeavors Corvo and initial safety lessons learned had been shared across our other sites.
I would like to recognize and thank our employees and contractors for their dedication to our strong safety culture work safe home safe.
Progressing our efforts for responsible mining we have begun the accreditation process for our largest mine candle area to the copper mark to.
Copper markets, the leading assurance framework promoting responsible production of copper.
Our mission statement says copper is vital to society and argue its role in the transition to a low carbon economy cannot be overstated our participation in the copper Mark will provide further assurance to our customers and our many stakeholders that we are living up to our commitments of response to mining.
I will now turn the call over to <unk> to review our financial results.
Thank you Peter.
Slide five in aggregate our operations performed well during the quarter copper and gold production exceeded the prior year quarter, while zinc production was in line and nickel production was low what go ahead of plan.
We produced nearly 110000 tonnes of base metals, and approximately 34000 ounces of gold.
We also sold over 100000 tonnes of base metals, and approximately 36000 ounces of gold on a payable basis generating revenue of nearly $1 billion for the quarter.
We remain predominantly leveraged to copper with the metal generating nearly 70% of the first quarter's revenue zinc.
Zinc and nickel both contributed 11% they did in the prior year quarter on increased realized prices.
Slide six presents a summary of our first quarter 2022 financial results compared to the same quarter last year.
We benefited from significantly higher base metal prices in the first quarter of this year compared to the first quarter of last year.
We realized copper price of $4.94 per pound, which includes a 25 cents per pound of prior period adjustments. The overall impact on first quarter revenue from the selling of prior period sales with nearly $50 million the large portion attributable to copper settlement.
Prior period price adjustments for zinc nickel and gold were also all positive and details of these adjustments are in our MD&A.
First quarter revenue approaching $1 billion and was 45% above that of the same quarter last year, primarily due to higher metal prices and price adjustments.
Attributable net earnings were 47 cents per share and adjusted earnings were <unk> 40 per share for substantially higher than same quarter last year and new quality Records.
You'll find details of these adjustments broke them down in our MD&A.
We generated adjusted EBITDA of nearly $590 million in cash flow from operations of nearly $320 million.
Operating cash flow before changes in noncash working capital items with over $470 million or 64 cents per share.
Capital expenditures on a cash basis were $145 million in the first quarter capital expenditures at Eagle now the Chicago and zinc, who then are all tracking well to annual guidance.
Turn to Larry and Chip had a capital expenditures are trending above annual guidance, given inflationary cost increases on capitalized stripping, including diesel explosives and other consumables.
We generated over $185 million of free cash flow in the quarter.
Lundin mining isn't a very strong financial position with cash and equivalents approaching $735 million at quarter end and a net cash position of over $700 million.
Further as announced earlier this week, our current Undrawn revolving credit facility has been increased to $1 $75 billion.
This low cost facility will help us maintain significant financial liquidity and flexibility as we look towards the development of Jose Maria and our other growth projects.
Lastly, our board of directors declared a regular quarterly dividend yesterday of nine cents Canadian per share.
We believe our regular quarterly dividend is sustainable throughout the metal price cycle and considers our sustaining and growth capital requirements I will now turn the call back to Peter.
Thank you Jenny we're excited to have announced the closing of our acquisition of Jose Maria Resources earlier. This morning, with the additions that Jose Maria project, we solidify our position as a leading base metal producer with high quality copper exposure and material growth.
Earlier this month the project received approval of its environmental social impact assessment from the San Juan Mining authority.
This was a significant milestone in the project development and a testament to the hard work of many we continue to progress the project to the next stages, including working with authorities in discussions on commercial agreements and additional sectorial permits. Our aim is to complete an updated technical report in the fourth quarter of this year study work is ongoing and includes an updated cost estimate.
To reflect current conditions as well as potential scope changes, including the possibility of a fourth line.
While this work is ongoing we expect the initial capital expenditure of the project to be greater than 4 billion.
Ahead of a sanctioning decision, we intend to spend up to 390 to reach a project construction decision in the second half of 2022 areas of spend will include long lead procurement basic engineering and pre construction activities.
We're very excited that the leading the development of the hose here me a project and to be building upon the excellent reputation of Jose Maria resources in San Juan and Argentina for the benefit of all stakeholders.
I will now turn the call over to Peter Richardson to speak to our operations.
Thank you Peter.
Starting with candle area on slide eight the operation had a strong first quarter producing to plan and delivering 139500 tonnes of copper and approximately 22000 ounces of gold at a cash cost of $1 58 per pound.
Candle area responded well to the new challenges fast spreading COVID-19 variance the operation saw the greatest number all COVID-19 related activities in the first quarter since the onset of the pandemic as we continue to adhere to precautionary quarantine and other measures necessary to protect the safety of the workforce and the communities.
These absentees and fleet availability impacted our overall mining rates in the quarter.
So we're tracking well to achieve our production guidance.
From the open pit ore mining is continuing primarily from phase 10, pushback with ore production from phase 11 pushed back starting later in the year.
Copper cash costs of $1 58 per pound was in line with guidance and better than prior year quarter.
Mainly to positive FX effects and higher sales volume.
Consistent with many other miners have indicated so far this reporting season can't Larry I saw increased cost for energy and consumables during the first quarter. So what candidate area. These were offset by positive impacts and higher sales volumes.
Cancel areas forecast cash costs remains in line with annual guidance with expected inflationary impacts on consumable being largely offset by production volumes and byproduct metal prices.
Candle area, that's first quarter capital expenditures were approximately 85 million capitalized waste stripping, which was estimated at $180 million in the November 2021 outlook is trending above the annual guidance.
Given the inflationary cost increases on diesel explosives and other consumables.
On the growth and exploration fronts, it unless it adds to the bottleneck. The Cambria plant pebble crushing circuit are advancing as planned to increase mill capacity starting in 2023.
Construction work on the new Pebble Hopper Ben is to start mid this year.
So how do you work evaluating expansion of the north and South sector underground mine from the current 14000 tons per day to 26000 tons has been finalized.
The study indicates a technically and financially robust project and we will be looking to update the royalty and taxation assumptions ahead of a decision to advance the project once there is greater clarity.
Lastly, we completed over 5000 meters of the planned 54000 meters of drilling and 50 million for the year.
Much of this is focusing on growing and upgrading underground resources, where we have demonstrated success in the past.
Moving to chip had on slide nine Japan faced difficult operating conditions in the first quarter, which the team managed well on their circumstances or do anything over 10000 tons of copper and 12000 ounces of gold at a cash cost of $1 82 per pound of copper.
Production of both metals were lower than plan of mining activities and release of fresh ore were impacted by abnormally high rainfall and COVID-19 related applebee's.
While we consider the impact of a typical rain season in our plants the record rainfall and greatest level COVID-19 related apathy of the pandemic, both directly and indirectly necessitated a greater portion of the mill feed to be sourced from the stockpile to keep the processing plant operating at full capacity.
We continue to expect production to be weighted to the second half of the year, owing to the grade profile and seasonal operating conditions opportunities to increase wastewater thing to improve the ore availability and production over the remainder of the year are being evaluated in action.
<unk> is currently tracking below the annual production guidance.
Copper cash cost was higher than the comparable quarter of 2021 largely attributable to inflationary increases on energy mine consumable and contractor costs, partially offset by higher sales volumes.
Part of forecast copper cash cost is trending above annual guidance, considering the impact of inflation on prices of consumable the strengthening of the Brazilian real and forecast production volumes.
First quarter capital expenditures were approximately $50 million cap.
Capitalized waste stripping, which was estimated at 20 million in that November 2021 outlook, it's trending above the annual guidance given the inflationary cost increase on mining consumables.
On the exploration and expansionary front, we continue to make progress with our studies evaluating potential expansion of the current processing thing up to approximately 32 million tonnes per annum. This work is expected.
It will be completed later this year.
Our exploration drilling was ahead of plan in the first quarter with over 15000 meters completed including two thirds will be completed in 27 holes on the silverware discovery.
Moving to the next slide.
With assay results received in the first quarter, that's all from me.
Life area footprint has now increased to approximately <unk> thousand meters by 750 meters from 750 meters by 650 meters at the time of the discovery announced in mid February .
The system continues to remain open in all directions.
Yeah assay results presented on this slide habit of receipts since the discovery of press release.
Mid April nearly 23200 meters have been completed in 70 holes with 46 assays received.
There are no fire drill rigs testing area to the north.
And south of the discovery area.
Slide shows the location of the completed hole, where assay results are pending as well as plant hole.
We are aggressively and methodically drilling this sector as part of the 10 million exploration program outlined which are out of this year.
We continue to be very excited about this discovery and believe it supports our view that many opportunities.
This to increase the size and the quality of our mineral resource base, such a part of it.
The potential implications. This high grade system may have for our ongoing expansion studies will be evaluated upsell well and this area continues to evolve with drilling.
Moving to Eagle on Slide 10 Eagle had another robust quarter, producing nearly 4300 tonnes of nickel and over 4400 tonnes of copper at a first quartile cash cost of negative $1 25 per pound on nickel.
Production of copper and nickel are trending at high end of guidance with production of both.
To be modestly weighted to the second half of the year on grade profile.
Realizing a cash cost of about negative $1 25 per pound on nickel in the first quarter Eagles cash cost is trending positively compared to the annual guidance with inflationary impacts on operating costs being largely offset by production volumes and copper byproduct metal prices.
With minimal capital expenditure roughly 5 million in the first quarter Eagle continues to generate significant cash.
Moving to Eagle's exploration and growth on slide 12.
Obviously disclose internal study work indicates that the upper kill cells seen undertake figure on this slide is technically and financially feasible.
We will be incorporating this into our 2023 life of mine plan and subsequent mineral R&R estimate updates.
As I mentioned, we're aiming to develop this area in 2023 with initial production in the first half of 'twenty 'twenty four.
We are continuing internal study work on the lower kilos sold.
So lower grades than the upper kill cells is even closer to the existing grid infrastructure.
2022 the drill program, which is testing extension targets, primarily off Eagle East has already produced results that will easily pay off himself.
The program's first quarter drilling has extended Eagle east semi massive sulfide roughly 57 to 80 meters to the east I've seen on the inset up this slide.
The underground drill program is being increased to four rigs, which will test exploration area roughly indicated around the most minimal capital shown.
Moving to nervous Corp. On slide 13, the operation produced over 9800 tonnes of copper 14007 hundred tons of zinc and nearly 800 tons of them that had a cash balance of $1 70 per pound of copper in the first quarter.
The primary production equipment of the zinc expansion project were all commissioned in the quarter starting in mid February remaining Zach work is progressing on schedule and on budget.
While copper production is expected to be modestly weighted to first half of the year given the copper grade profile zinc production has to be second half weighted as production comes that is ramp up over the course of the year.
Both copper and zinc production are on plan and tracking well to achieve annual guidance.
That was core real cash costs of $1 70 per pound was lower than that of the corresponding prior year quarter higher cost for consumables, particularly electricity were more than offset by higher sales volumes and byproduct credits given the zinc price.
Forecast cash costs remain in line with annual guidance with expected inflationary impacts on consumer will be largely offset by production volumes and byproduct metal prices.
This year, we intend to initially feasibility study level work evaluating the potential to developers in bladder copper deposit and improve the copper production profile, having purchased the outstanding interest in this deposit late last year.
In the first quarter, we completed over 7700 meters of exploration drilling with the main focus on jumbo job east extension towards that blonde on deposit and multiple like what robot.
Lastly on the operational front in Q1 continued to perform very well producing over 17600 tons of zinc nearly 1200 tons of copper and over 6700 tons of lead at a cash cost of 27 cents per pound of zinc.
Zinc production is to be weighted to the second half of the year. That's feed grades increase over the course of the year based on the planned mine sequencing.
In Q1 forecasted cash costs remain in line with the annual guidance with expected inflation and the impacts on consumables being largely offset by production volumes and byproduct metal prices.
On growth our board has recently approved the sequential flow of patient projects to further improve concentrate grades and metal recovery rates.
It is a relatively minimal capital expenditure projects on the order of $15 million with high high R and quick payback period, we expect it to increase in Q1 zinc and lead production by roughly 2000 tons per year. Starting later next year.
Exploration efforts continue this year with a primary focus on increasing mineral resources authority and between Brooklyn, and neither of them.
Over 4400 meters, where computers in the first quarter.
20000 meters of drilling is planned as part of the 2022 exploration program with that I'll turn the call over back to Peter.
Thank you Peter and conclusion of our operations performed well in the first quarter, particularly as we adapted to new challenges of the fast spreading COVID-19 variance at many of our operations and significant rainfall in Brazil, we are tracking above the midpoint of our annual guidance ranges for copper zinc and nickel. The gold production is currently trending at the lower end.
Chicago, we are evaluating opportunities to increase waste stripping to improve or availability and the production over the remainder of the year. However, we are currently tracking below guidance.
As many of our peers have also indicated we experienced inflationary pressures on energy fuel contractor cost and consumables in the first quarter, we've implemented procurement strategy to mitigate the impact of this and for most of our operations. They had been offset by production volumes and byproduct credits.
Capital expenditures at Eagle never Should've Bank group and are all tracking well to annual guidance or candidly ranch pad are tracking above with inflationary cost increases on capitalized stripping diesel and explosives.
We were able to take advantage of the strong base metal environment and deliver positive financial results highlighted by the adjusted EBITDA of nearly $590 million adjusted operating cash flow of nearly $475 million and a record quarterly earnings per share.
Lastly on growth we are excited to now have the Jose Maria project under our portfolio exploration at <unk> continues to deliver impressive results expanding the mineralized footprint and we're working to include the <unk> zone at Eagle into next year's updated life of mine plan with the aim of first ore in 2024 with these and other growth opportunities at each of our App.
We are well positioned to deliver on our strategy.
And with that operator, I would like to open the line for questions.
Thank you.
To ask a question you will need to press star one on your telephone.
Your question press the pound key please standby, while we compile the Q&A roster.
Your first question comes from the line of Greg Barnes from TD Securities. Your line is now open.
Thank you.
Peter I just wanted to talk about was the Maria and how do you plan to move forward with the project, particularly given its scale. What are you gonna do regarding UPC I know you're going to bring in a bechtel or central or someone like that to build before you in effect.
Thanks, Greg.
Right now what we're doing this we're progressing towards a production decision in Q4, we've been working very very closely with the Jose Maria team our team and floor and we are reviewing a number of different options. We've also got another well known group that we'll be doing a third party review.
And what you specifically asked for will be part and parcel of that entire review. So it's an ongoing process right now, but it has been quite fulsome and we've been spending a lot of time with the flurry team on that or on that specific area.
We believe we do believe as it stands right now Greg there's a very solid team that had been put together at Jose Maria that certainly has the capabilities.
To build this I recognize it's a large project but.
They have built a number of similar sized projects globally in the past. So there is a long history there.
You are going to have an EPC M.
Agreed and from there I think.
That will be the likely yes.
Okay.
So.
Yeah.
Your next question comes from the line of Augusta Ocado from Scotiabank. Your line is now open.
Hi, good morning appreciate the.
Update on Jose Maria just so quickly after closing here I'm just curious.
You've disclosed that you expect the initial capex to be greater than $4 billion.
Is that does that reflect just a re costing based on inflationary pressures.
And based on the original Jose Maria study or does that already include potential scope changes that you were mentioning earlier.
That's a good question or so obviously, we had done our own due diligence, which reflected a number similar to what we're quoting in addition to that we have factored in today's inflationary.
<unk> if you will.
So the team has been looking at specific pricing right now and taking that into consideration, but we are also looking at.
Some potential changes from the scoping perspective, we are looking at changes the crushing capacity.
Potentially the power line and as mentioned I think as it relates to the possibility of an additional fourth line. So these are all areas, where we're doing current tradeoff studies and that's why we're running a specific number I would just right now, but we are trying to provide a level of guidance.
So it is a combination.
The combination okay. Thank you for that color and then just you mentioned also in your disclosure that you are seeing upside pressure on capex, specifically, yet candle area Ciabatta can you give us an idea of how significant that could be say for them up maybe a percentage increase or.
But just wanted to get a bit of flavor on sort of what youre seeing.
Sure Judy.
Sure.
We are seeing some some inflationary increases.
We're looking to do additional capital.
At Candelaria and <unk>.
Really it's difficult to kind of give I guess, an overall guidance on on what we think that increase is going to be but if we look at some of the input factors on on on the cost that we're seeing in general a stove. For example, we're seeing increases in diesel electricity are late.
<unk> contract costs, So I think.
Generally kind of I don't know that in the 10% range I think would be a reasonable estimate at this time.
Thank you.
Any other question north.
Yes.
Next question comes from the line of Daniel Major from UBS. Your line is now open.
Yeah. Thanks.
Yeah, a couple of questions.
Just first one just to be clear on the 300 million.
Dullness of additional spend associated with Jose Maria.
This year that would mean that your group Capex guidance effectively maze from $6 50 to 950.
And in terms of what you will consolidate.
In the cash flow statement is that correct.
Yes, yes, sorry that that is what we would expect in the cash flow correct. Great. Thanks, and then second question on <unk>.
How does that movie ever again.
Quite a big.
The short time, Capex and cash commitment before the the economics and particularly the stability agreement in Argentina was finalized can you give us any.
Updates on.
The process.
Of stability agreement, particularly with respect to.
Capital controls in some of the challenges the other oil prices happened in taking cash out of the country without a large discount.
Yeah. So the the Jose Maria team has spent a lot of time, obviously in the country I had been down in Argentina, as well for a period of time.
I think our relationships with the government are extremely strong and they're very supportive of the project. So with that they have agreed to a tax stability agreement, where we're allowed to keep 60% of all our proceeds outside of the country. We are just finalizing some of the terms on that but that would be an increase from the previous number which was 20%.
So that's that's very positive and there are a few other things that we're currently reviewing right now and one of which is the potential changes to the taxation, where it's more of a sliding scale.
I'm sorry, what was the third question.
Or was that does that answered both your questions.
Yeah that was a that was spaces it but just to follow up on that slightly so so in terms of the.
Discussions you're having with the government. This this SAP her discussion on.
The effective tax rate, but also the ability to take cash out of the country and currently have agreement and so you can take 60% of the proceeds out of the country is that the right read on that.
Well they actually stay out so it's we would bring back is a better way of looking at it to 40% back into the country.
Okay.
Okay very good.
Yeah, that's it for me for now thanks.
Thank you.
Our next question comes from the line of your awareness Ms. Lewis from Morgan Stanley You May now proceed with your question.
Hello, Good morning, and thanks for taking my questions are.
Two left from my side, the first on a chip odd.
You mentioned that the cashcall, so trading above annual guidance.
Which I believe it's $1 60, if we look at Q1.
You delivered $1.80 to ease the Q1 level.
Our estimate for the year or will inflationary pressures intensifying, hence even the Q1 figure is a bit optimistic.
And I'll stop here. Thank you.
Yes.
I'd say there is possibility that it could be a higher we are.
There anything like you said the inflationary pressures and also with our.
Our production right now kind of trending below guidance that is going to have an impact on me on the cash cost for the year.
Okay understood. Thank.
Thank you for that and the second question on our own in Chile, If we look at the royalty Bill.
But you mentioned it seems that the government is considering a broader tax reform that could include the royalty Bill do you have any sense, whether that scenario could play out and what could it mean for timing.
Could this process be complete till the second half of the year or even next year or would you expect a decision on what they see in the next few months. Thank you.
I would say, it's very hard to predict that right now I mean, the new royalty tax bill sitting with the Senate.
My understanding is they are waiting to see what comes out from the constitutional convention, but many of that provoked proposal excuse me that have already come forward have been rejected so.
Very hard to predict but it does seem that things are moving arguably a bit slower than initially anticipated, but oh I am I'm also hearing that a lot of things that are being put border in a much more tempered manner. So a hard for anyone to have a crystal ball, but it does seem to be moving slower, but I guess the positive news as well as the there as I say that.
The terms seem to be dialing.
Dialing back to a more realistic level as well.
Great. Thank you.
My pleasure.
Our next question comes from Bryce Adams from CIBC capital markets. Your line is now open.
Yeah. Thanks, Peter maybe a follow on to <unk> question on Jose Maria Capex, I was going to ask on scope versus inflation.
But the follow on question is I think it's interesting that you put out a $4 billion a floor in the capex.
But let the upside open what do you think a potential ceiling might be for the Capex estimate.
Could it be four and a half of $5 billion or do you think both of those numbers are overstating the capex.
This was obviously.
Big discussion over here, because we wanted to give some form of guidance, but it was difficult to do given we're still requiring a lot of information.
We do think as I said, it's just going to start with before I mean, hypothetically could come in lower than that but I think that's a number that we're comfortable stating right now and it's hard to put the upper end in because some of those things as I said, our potential scope changes, which aren't necessarily things that we would have to do.
It would only be things that we would do if it helps the economics of the project. So I think we'll stick with what we provided for the moment and you know as soon as we can give you guys better clarity.
Most certainly be doing it and I really look forward to when we when we have the exact numbers will give a very thorough presentation from the project team on how the spend is occurring in the timeline et cetera.
Okay. Thanks, I appreciate the extra color there.
No problem.
Yeah.
As a reminder, again if you would like to ask a question just press star one on your telephone keypad.
Again, Thats Star one if you would like to ask a question.
We have a follow up question from the line of our Aster Macondo from Scotia Bank. Your line is now open.
Oh, Thank you for the follow up just a couple of questions on candle area. We did see throughput declined quarter over quarter. I was just wondering if you can give us an update on sort of what's happening there on both the ore hardness issues and the throughput, but also just what's happening with the grade.
Dilution issue.
That was spoken about last year. Thank you.
He didn't want to well I'm going to answer it yeah. Why don't you go for that Peter. Thank you yeah. So production in Q1 as its gone according to plan.
No.
With all.
Although the ore from the open pit from Phase 10, so that has been according to plan. So Cooper that's come in basically on plan are the.
And see that we don't mention that.
That discrepancy this quarter, but it's well in line within industry norms. So all the work that we put in second half of last year.
It's proving to.
To help us there and it has improved our or desktop to see month to month to month. So we're not we're in a good place there.
So is that issue now on the great issue is now essentially behind you like what was that was the conclusion that it was more of a.
Sort of a labor scale issue and it's not like you've already rolled out the weather issue here.
We're still working on it because we still feel that there's room to improve further but it's a it's a combination of things. So its operational control, but there's also some physical changes that we have made both due to planning to the way we operate our stockpile Oh sampling system well.
So it hasn't moved a lot. So we're still working on to improve it further.
Thank you.
Our next question comes from the line of Brian Thompson Barreto from Canaccord. Your line is now open.
Thanks, and good morning, everybody.
I wanted to stick with Jose Maria here, and maybe talk a little bit about 70 scope changes you're contemplating and I'm. Just wondering are these scope changes specific to the Jose Maria project or are you looking at exercising some of the infrastructure to maybe capitalize on some of the synergies with PLO.
Well I would say.
Yes, there are specific to scope changes, but there is a possibility that the Jose Maria.
Deposit will be bigger than we anticipated and with that.
We're reviewing whether we trying to bring some of those years forward.
So it could be for the benefit of the Jose Maria deposit itself, where we increase the throughput or are just setting up some things, where there's maybe a benefit for synergies in the future.
Okay, Great and then.
Though it's still reasonably early but have you have you given any thought to.
And the structure of the financing for this project and the possibility of bringing in a partner.
We have put a fair bit of thought into that and are you.
Obviously, you saw the numbers from this quarter, we ended the quarter with a pretty strong cash position and you know in these commodity price environments that cash position continues to be very solid and we also just announced the amendment of our credit agreement and that increases to $1 75 billion.
In the short term, we do have a lot of financial flexibility.
And we think that we have both the skills and the balance sheet to grow this by ourselves. If we so choose that being said we will look at a series of other opportunities that have been presented to US is to ensure we make the right decision for all shareholders.
Thanks, and maybe if I can just probe that a little bit further if you do go down the partner route is it your preference to have a partner.
With an equity investment the project level or would you consider streaming partners as well.
I would say at this time, we would look at all opportunities I don't think I'll narrow it down from that at this stage.
That's great. Thanks Peter.
No problem.
Yeah.
Can we just have a follow up question from Daniel Major from UBS. Your line is now open.
Hi.
<unk> is on the.
The.
Studies around that expansion of Japan or is it fair to assume that the.
This will come after the technical study on Jose Maria.
I don't think the two are necessarily linked so we are targeting to have a technical report on the expansion done by Q4, I think Peter you had mentioned that during the actual call.
And then from that we will look at.
The timeline for permitting and construction so.
I wouldn't link the two together.
Okay.
Right.
Sorry does that answer your question.
Okay.
Okay.
Thank you presenters there are no question at this time I will now turn the call back to Peter Roskam Neal for any closing remarks.
Thank you operator, if there's no further questions.
I want to thank our shareholders for their continued support it's been a really really strong start to the year.
We have great momentum going forward with our existing operations and now adding a world class project and Jose Maria we're set up extremely well to have world class growth going forward. So exciting times ahead and I appreciate everyone's support and we will look to update everyone as we move forward.
Thank you.
This concludes today's conference call. Thank you everyone for participating you may now disconnect.
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