Q2 2022 SSR Mining Inc Earnings Call
Hello, everyone and welcome to SSR mining second quarter 2022 conference call. This call is being recorded.
At this time for opening remarks, and introductions I would like to turn the call over to Alex <unk>.
From SSR mining. Please go ahead.
Thank you operator, and Hello, everyone. Thank you for joining us its our mining second quarter 2020, a few conference call during which you will provide an update on our business and a review of our financial performance.
Our second quarter 2022 component a factual statement have been presented in accordance with U S. GAAP.
The financial statements have been filed on Edgar and SEDAR. The ASX and are also available on our website.
To accompany our call Theres, an online webcast and youll find the information to access the webcast in our news release relating to this call.
Note that all figures discussed during the call are in U S dollars unless otherwise indicated.
Today's discussion will include forward looking statements. So please read the disclosures in the relevant documents.
Joining us on the call today are rod Antal, President and CEO , Allison White, CFO and Stewart Beckman C E O.
Now I will turn the call over to Rod for his opening remarks.
Thanks, Alex and Hello to you all and thanks for joining us.
To start by providing a brief summary of our positive first half results.
First half of 2022, demonstrating the continued resilience of our business in the face of supply chain constraints and inflationary pressures.
Hey, Jeff consolidated production and cost metrics track well against our targets.
Therefore operating assets produced 333000 ounces of gold and all in sustaining costs of 11 77 per ounce with solid margins and attributable net income of $126 million.
Our financial strength to drive us to continue leading capital return program.
During the quarter, we announced the buyback program that enables us to repurchase up to $10 6 million shares.
This together with a 40% David and increasingly an issue resulted in year to date return to nearly $100 million to shareholders.
Equivalent to a 2.8% yield and growing.
Despite the positive performance in the first half of the year and numerous strategic milestones. We are continuing to face increased cost pressures across the portfolio, especially in fuel electricity.
And labor costs.
While we have been successfully bucking the cost inflation trend.
The past eight months.
At the same cost scenario.
Many guys efforts.
As a result, we agree for them in your production guidance, albeit at the bottom end of the guidance range and we are revising our cost got its hard after the first for the year to reflect the macroeconomic pressures and the temporary suspension of chip, which already discussed during the presentation.
So this is moving on to slide four.
On this next slide I wanted to follow their core values in relation to Aries J initiatives.
<unk> has long been a core value and focus for the company as it underpins the success of our business.
Well it relates to our fourth annual sustainability report in April which highlighted a number of achievements during 2021 and some of the new initiatives for the company.
During 2021 amongst other things we progressed our efforts to establish a songs by its actually play to support our commitment on <unk>.
Net zero greenhouse gas emissions by 2050.
In 2022, we will continue to rollout <unk> safety management system with full implementation expected this year.
Furthermore.
Third party pleasure reviews across all our operating assets to ensure a positive postmodernist feature for our stakeholders and are also developing a water stewardship strategy as we see continuing to reduce our environmental footprint going forward.
Also to the next slide which is not the five.
As we continue through 'twenty two it is worth highlighting our impressive track record of execution.
While the suspension of chip has impacted our full year projections, we are advancing opportunities to ensure the business is still a way to production guidance.
Looking towards the future. The key message is that we have established a baseline production platform. When we see clear opportunity to deliver plus 700000 ounces of gold production annually through 2030, the solid foundation.
Coupled with the ophthalmic drug targets being progressed across the portfolio.
And that is just the baseline for the company to continue to build from.
Moving on to slide six.
And I was hoping to have a track record of operational delivery. We've also established a proven history of disciplined and accretive M&A as well as projected bill on.
This includes the acquisition of Toggled golf, which closed in the second quarter and expands our exploration platform to schedule. It.
We also closed the sale of Peter Ria in July .
Non core asset sale have now generated $245 million in proceeds over the last four quarter.
Four quarters more than two times the street consensus value ascribed to those assets.
Given our track record of strong operations and project execution as well as the robust balance sheet, we continue to thoughtfully evaluate strategic opportunities across the sector.
Marine by discipline.
With respect to any future transactions.
So on to slide number seven.
Over the last 30 months, we have ensured a strong free cash flow generation is reflected in our capital returns program to that effect, we returned $191 million to shareholders in 2021, and effective 5% capital return shield.
Early this year, we increased our base dividend by 40%, which by itself is yielding 1.8% annually.
Subsequently to the second quarter, we announced the share buyback that permits the repurchase of $10 6 million shares and over the year to date period, we've already returned nearly $70 million through that program.
The bonds with a two quarterly dividend payments.
To date, our capital returns are already $100 million or 2.8% yield.
Overall, a combination of our strong operating results.
Or even strategic M&A initiatives of <unk> capital return programs has driven significant outperformance for our shareholders. A trend we expect to continue with a multitude of catalysts over the coming six to 12 months.
So on the next slide to discuss the quarter.
Just a few of the key points to consider relevance for the quarter.
First half production of 333000 ounces of gold and all.
All in sustaining cost of 11 11 $77 per ounce was in line with your internal budgets and got us.
However on June 20, <unk>, we had an incident of chip with heap Leach, resulting in a suspension of operations pending the completion of improvement initiatives.
We've now completed basin issues, these pending verification and inspection work by the regulators.
After inspection and verification will move towards the required approvals to restart the operations, which is anticipated during the third quarter of 2022.
We remain closely aligned with the regulators who will provide further updates as required.
So with that I'm going to turn the call over to Alison who is going to discuss the financial performance and updated 2020 to outlook on slide number nine.
Thanks, Rob and good evening and afternoon everyone.
We produced over 159000 gold equivalent ounces and over 333000 gold equivalent ounces in the first half of the year in line with our expectations for back half weighted production profile.
As mentioned earlier, we revised our guidance for all in sustaining costs to $1230.
$1290 per gold equivalent ounce and are targeting the lower end of our existing production guidance range.
We are aggressively pursuing continuous improvement.
Cost management initiatives, aiming to mitigate inflationary pressures where possible.
Also diligently working to ensure higher cost do not remain a permanent feature of the <unk>.
Business moving forward.
Bold equivalent sales of 167000 ounces in the quarter drove revenue of $320 million.
Attributable net income for the quarter was $58 million or 27 cents per diluted share and adjusted attributable net income was $67 million or 30 cents per diluted share.
Second quarter operating cash flow was $33 million and first half operating cash flow was 95 million.
First half free cash flow of $19 million was impacted by the timing of tax and royalty payments.
<unk> expenditures and working capital outlays as previously guided looking to the back half of the year. We expect a strong Q4 to influence free cash flow distribution with 80% to 90% of the forecasted second half free cash flow expected during Q4.
On the right side of slide nine I'd like to provide some commentary on our reported 30 and diluted earnings per share that is calculated based on the company's definition of adjusted attributable net income per share.
Attributable net income of 27 per share when adjusted for foreign currency fluctuations during the quarter and the Argentinian peso and Turkish lira devalued against the U S dollar.
Along with minor adjustment for tax impact and adjustments for the mark to market of our marketable securities portfolio.
Let's move on to slide 10, as we discuss the outlook for the remainder of the year.
As you've now seen and heard from Rob we have increased our 2022 comp guidance as a result of the sharply our temporary suspension and the persistent and pervasive inflationary pressures across the business that I had also talked about in the first quarter call.
Our production guidance remains unchanged, we expect to finish the year at the lower end of this range again, reflecting the temporary essentially at sharp.
Our all in sustaining cost guidance range is now $1230 to $1290 per ounce.
And the largest driver of our increased cost guidance include lower silver prices for the conversion of gold equivalent ounces as well as lower production volumes and higher diesel electricity and reagent prices prices at all of our locations.
We continue to focus on business improvement and cost savings initiatives that helped limit the duration and impact some of these cost pressures.
While some items like higher wages will remain with the business in coming years, we remain confident in our ability to deliver on our operating track record, while incorporating cost improvement.
Moving now to the second quarter results in more detail on slide 11, we'll talk about <unk> financial position.
At the end of the quarter the company maintained a cash and cash equivalent balance of nearly $940 million, while net cash is nearly $640 million.
With that strong cash position in mind, I would like to reiterate our priorities with respect to capital allocation within the business.
First and foremost we will continue to reinvest in growth, including our exceptionally high return Art Agency, two project, which will account for approximately $300 million and total growth capital through 2025.
We are committed to maintaining a robust balance sheet to weather volatility in the commodity price environment and ensure all of our capital commitment debt servicing requirements and make dividend payments are fully funded even in the event of a potential downturn in gold price.
Third we remain committed to capital return as evidenced by the recent share repurchases totaling nearly $70 million during the year an impressive total given the announcement of the 2022 buyback program with just over a month ago.
This renewed buyback program further strengthens our capital return coupled with a 40% dividend increase announced earlier this year.
Between the year to date buyback activities and an annualized dividend of $60 million or 28 cents per share. This resulted in a minimum capital return of approximately three 7% for the year.
Most importantly, we continue to be disciplined in our approach while ensuring our return appropriately reflect our company's strong free cash flow generation.
And with that I'll turn it over to Sue for an operational update.
Thank you Allison.
And as always I'll start with AI chips, and as we sort of proven and averages in injury rate in the quarter.
It reminds about where we want it today and as always an area of considerable.
Hi, Chris.
We're disappointed by the incident, which caused the suspension that chip and are working to review and reinforce our underlying systems and practices across the business all.
I will talk a little more on chip low lineup.
Safety and the care for our teams communities and the environment, our core values and we believe of course are foundational to business performance.
Moving on to Slide 13, I will talk about share.
That's what I did on the Q1 call. We completed our first scheduled major autoclave shutdown with spring breaking of the five courses of all the clients number two in early Q2.
This is impressive performance from the auto clients, given we filed with them back in 20 odd thing.
Mike not shutdown took about three weeks to complete which along with lower mine grades resulted in a slightly softer on the Holocaust quarter. We delivered production of 51000 ounces at an all in sustaining cost was 1200 and $53 an ounce.
We also continue to ramp up the flotation plant in the quarter.
Overall performance is good so we are still presenting more carbonite to the oil in place than we had hoped meaning we are using or estimate and what we are working to employees improve as carbonite split, including a collaboration with one of the two universities.
Obviously, the risk of all pricing is an overhang for the business, but I'm pleased to report that all of the improvement initiatives required both the tequila administrative environment have been completed and we are waiting the verification and approval by the relevant authorities today, we had a visit from a local directory to inspect finalised work.
Improved process control compensating the heap leach and improvements to the dams in run off.
It was completed.
The other side of regulatory officials.
Same as mine to walk from the incident and we remain in close contact with our regulators and are aiming to restart the operations had shared with you in the quarter.
On a more positive note during the temporary suspension, we have been able to bring forward much of the three week maintenance, Florida clubs. One that was previously planned for the fourth quarter, enabling a stronger close to the year, whilst the cheerful up returns to full operations.
With respect to our growth initiatives, we progress check Mark typical extension or outage remains on track to deliver first production in 2023.
We're also progressing to say two projects for PFS in 2022 and expects to release. These results of this more optimized project to the market in 2023.
We are excited by the potential of both of these.
High return low capital cost.
Projects.
Moving on to slide 14, and we can talk about marigold.
Marigold delivered quarter over quarter improvement by production timing continues to be impacted by the stacking of foreign material from the north pit.
<unk> of almost 46000 ounces at an all in sustaining cost was $1450 an ounce was largely inline with expectations for back half weighted production profile.
Towards the end of the second quarter, we began stacking of higher grade material and we expect a significantly stronger production in half too, especially in the fourth quarter.
71000 ounces in Q2, and offset 30000 ounces just in June as a result of the high grades.
<unk> continued to advance the development and we expect to receive the AI. The expanded format in 2024, we advanced with for the Marigold District Master plan and expect to release. This report to the market in 2023.
Moving to slide 15.
<unk> had another fantastic quarter, producing over 38000 ounces at an all in sustaining cost $629 an ounce.
Following a record sales quarter.
<unk> continues to record first half production of nearly 91000 ounces at $611 an ounce.
We are advancing exploration of the extension to the very high grade designs that drive the first half.
The good news is that we think that we have more Bob.
We don't expect that we'll be able to mine. This area until 2023. However, we have accelerated development to access another flight ride area of Santo AR reserves and accordingly, with increased 2022 production guidance to 150 to 160000 houses a phenomenal outcome for the asset and the team.
I'll touch on the exploration work that continued in the quarter in a few moments, but would highlight the progress of CV District Master plan that we also expect to release those.
For 2023, which John can start to present itself soon.
There was some really exciting targets for future development, there were accelerating and intend to include in this and the subsequent master planning documents, we've been drilling at <unk> West target, which is showing promise as a potential open pit option for seabee.
Successful this could provide a foundation to reframe the development pathway for CBD.
Please move to slide 16.
They had a bounce back from a soft first quarter with production of nearly 2 million ounces of silver at an all in sustaining cost of <unk> 23.
$15 and $23.23 announced production is expected to increase in the back half of the year with better grades.
Cost continued to be impacted by high inflation in Argentina.
Lastly, before we turn it over for questions I want to jump to slide seven highlights some of that exploration initiatives, if we progress during the quarter.
We progress exploration programs across the business in the second quarter and are preparing to release the results of.
Some of these efforts in the second half of this year.
At arch resource development and expansion drilling continues as we are additional growth to the ore body that could further complement the production profile outlined in the C. D and paid 21 earlier this year.
Also in Turkey, we have restarted drilling at the coffee Hill project, which is a pure copper prospect in the Black Sea region.
Saskatchewan the same progress definition drilling of the Cheyenne Tiger, which is just off the whole road between the mine and the processing plant.
We are also very excited about <unk> western mine targets to the northwest of the save a plant where recent drilling and reinterpretation of the existing resource modeling indicates the potential for an open pit target, which could operate simultaneously with the underground operation in the future.
Such an additional tonnage.
Allows us to re imagine the operation such as the process plant expansion or upgrade and the potential for an all season right the operation.
In Nevada exploration progress, both BMO and more regionally.
Drilling is currently underway at Trenton Canyon, and Buffalo Valley, and near pit drilling at New Millennium is showing encouraging results. We've now increased the rig count for exploration to six illustrating a significant number of targets in the assortment for the asset some portion of the new millennium drilling should be included in our.
You'll resource update later this year.
Lastly, our panel we started drilling for the first time since 20 odd thing the exploration team has identified a number of inputs and Nemo and targets that is successful could provide mine life extension opportunities. We plan to release exploration updates cheerful, which of course includes outage coffee Hill city.
At Marigold and Puna by the end of the year and we will look to incorporate as much as possible of the extensions.
The exploration success into the new technical reports that chip lets say me Mary golf in 2023.
Thank you very much and back to you.
Great. Thanks, Joe and thanks Allison.
Suddenly as an industry, we are facing significant external challenges.
$1 22 for which we remain vigilant and proactive to mitigate the impacts.
We remain on track to deliver our full year production guidance and have a number of potentially positive catalysts ahead from the asset base.
We look forward to the restart of operation with Sherpa, and we'll keep the market updated with any further developments regarding the required approvals.
Finally, I did want to welcome Johnny but to the executive team at Schuh was continued contribution to the business. While we go through this planned transition of the senior leadership.
So with that I'm going to hand, it over to you for Q&A.
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 keys to withdraw your question. Please press Star then two we will.
For a moment as callers join the queue.
Our first question comes from Cosmos <unk> of CIBC. Please go ahead.
Thanks, Rod Allison's, two and team for the presentation.
My first questions are around chirp alright.
To confirm or to clarify two.
Two or rod it sounds like.
The Inspector has now been on site and is it has he or she and.
Are you now just awaiting the receipt of the regulatory approvals.
So today, we finished the work.
For the weekend and today, we have the local and spectrum come out.
It's a series of.
Approvals that have to happen and we will also receive visits from the.
In the aggregate and spectrum as well and there's a bit of a process that will go through it.
Gotcha.
And.
After you've received all all your approvals could you maybe.
Line or kind of a game.
Can you give us a bit more detail in terms of how long it would take to get.
The autoclave and everything else sort of restarted again.
It will take us about four days to break stopped caused from a cold start.
Great.
And then in.
In terms of the planned maintenance.
I think a bit of a silver lining I guess that you were able to push forward some of the scheduled maintenance from the second half in.
Two.
Cut down period.
So to confirm I guess.
Previously you had schedule about three weeks in terms of a plant shutdown in the second half. So those three weeks, we will no longer be necessary and that will help you in terms of making up for lost time, when we talk about second half production does that is that correct.
Yeah. So.
We've done all of the mechanical work on the waterflood, and we'll be able to push it out.
Into next year to do the face courses on the brakes.
And then two I guess as you said you are re breaking.
The one autoclave from next year, how long how long is that going to take in 2023 are we talking about one week, a week and a half core is it going to take the floor.
It will be the critical hospitals, Oh, sorry to leave that to Australia.
Okay.
We don't see that as a whole we don't do all the ones I've just part of it.
Okay, Yeah, and open it up and see if everything sort of Okay. And then and then go from there I guess, yeah. There are certain regions that get more wear than others and those are the ones that we do.
Rick Redoing this high school, so that was the Simon the other older clinics.
Great and then maybe switching gears a little bit on CV here.
Good to see that I think you brought up the guidance for the year.
As you talked about production guidance.
You kind of mentioned that on the call in your prepared remarks as well.
But the increase is that.
Based on the fact that you've outperformed in Q1 and Q2 or is there some element to it whereby you know you also.
Depending on.
You know.
Some kind of outperformance.
In the second half as well to hit those.
The updated guidance production guidance, where CEB.
Yeah. There's a look we have pulled forward a little bit of progress, but it's within the reserves.
It's part of the modern rescheduling.
That's I wouldn't say, it's high risk assets as part of that normal pattern.
Of course, and then one last question just to wrap things up.
As you mentioned you had to up your.
Cost guidance for the year.
Right.
I know you've kind of talked about that in your prepared remarks, but could you maybe talk about what had been factored in in terms of inflation.
In the previous guidance.
<unk> is now that you're factoring in.
Given that as we talked about the composition for guidance is now a bit different trippler guidance has come down in terms of production CEB.
Production has increased so far CBS and toy in all of the cost is a bit lower so I would imagine that helped in terms of offsetting some of the inflationary pressure, but indeed inflation still cause your guidance to go up. So did you put a quite a bit of conservatism into your <unk>.
To your cost guidance, maybe just some comments on that.
So cosmos I'll take that one.
Hi, Allison.
[laughter].
Good to hear from you today.
Hey, John .
In addition ill.
Factor.
Into the inflation, we've seen a steady run rate through the course of the year where inflation.
It has certainly outpaced what we had initially budgeted and so we set our remainder of the year and our cost guidance based on what we've already seen come through this year and some of the just to elaborate a little bit further as volume the number of ounces that are increasing at seabee are.
Driving down some of the costs there but.
But overall, we're certainly seeing a track record of inflation, increasing that cost base across the organization.
Great. Thanks, again, Allison's do and Rod of course, and those are all the questions I have.
Okay.
Okay.
Our next question comes from Michael <unk> of RBC capital markets. Please go ahead.
Thanks, very much for taking my questions and if I can try to push a little bit more on <unk>.
Is there a schedule and planned visits in place should we be thinking days weeks or is it possible that the operation could be <unk>.
Offline through the end of September just depending on the government's schedule.
Yeah look Mark I think we outlined it well.
<unk> written documents as well as our opening remarks in etch Judas elaborate it a bit more in terms of just more physical activities on site here in the sort of last 72 hours.
At this stage, we built into our planning startup in quarter three.
And based on what we know today, that's the that's our best estimate.
Okay copy.
And then maybe following up.
Well on the previous question about cost and maybe costs beyond 'twenty. Two can you can you elaborate on how youre seeing trends.
Across your business are you seeing cost starting to stabilize or are you seeing some stabilized others continuing to trend higher any any.
Visibility into what Youre seeing.
Yeah, Hey, Michael.
We are definitely starting to see a little bit of I would say that the peak on fuel.
But we are not necessarily looking.
Two into sorry.
We're definitely just past the peak on appeal and as we look to the future. We are definitely seeing that there will be some sticky cost that we're experiencing now that will continue into next year, but with the rapid pace that we've seen that the rate of inflation change over the past few months.
Arent necessarily positive of what that exactly is going to be going forward, but we do expect that we will have some going into early next year.
Okay, Great and then and then in terms of mitigation and future mitigation are you considering changes to your plans with respect to stockpiling hedging supply chains.
I imagine youre looking at these things on an ongoing basis, but have you come to any.
Conclusions about changing strategies going forward.
Michael I think I think the way back to <unk>.
Take abnormal planning cycle.
As a as a business.
We always look to improve our cost base.
Supply chain opportunities that could be it could be continuous improvement so operational effectiveness.
The initiatives that we have that's just normal course for us. So we will build those into two we are planning cycle, but as Alison mentioned.
<unk> costs are sort of have definitely outpaced the work that we'd already anticipated for 2022, sorry.
We will wrap all that up in these next few months.
And that will that will tell us where we netted it out.
Okay, and maybe last one just back to choke blur and the artist startup next year.
Should be improving costs can you can you expand a little bit about how you see costs.
Schoeffler trending going forward with the addition of <unk> in 2023.
I think the best guide to what our expectations without chose as the city and paid 21 that we issued the technical report earlier in the year.
Okay. Okay, great. Thanks, very much appreciate it.
Responses.
Thanks Barbara.
Sure.
Our next question comes from obese Habib of Scotiabank. Please go ahead.
Hi, Martin this is our team.
Just a couple of questions from me maybe.
Some of the questions I have we got to restart.
It's one of those cost inflation, I guess it'd been answered.
Yes.
Maybe a follow up on art age.
Are there any permits or anything pending regarding any regulatory requirements.
To advance our digital production in 2023.
Yes.
Hum.
The permits have always been the critical path for harvest for us.
From a technical perspective is relatively easy.
So far all of the parents of thing and the progress towards those because as with all Monte projects, there's multiple product that parents for quad.
Have been moving in line or a little bit faster that schedule.
So.
We're still on track for what we thought when we issued the technical report.
Okay.
Moving on to the exploration front I mean, you mentioned in Belgium.
There's a lot of local bonds in place all across.
Are you looking to come up with something.
Exploration update and then kind of resorts options and then kind of moving into these these.
These mine plans are these milestones that youre looking to come up with an early 2020 kidney.
Maybe if you can give a little color on that.
Yeah, So we'll issue.
Exploration updates later this year for the projects, then where will you know typical exploration of types of the rule provides based houses are the holes and the steps that we've received the vote.
We will then build those depending on how quickly it arrives with what Joel density, which supposedly been seeing whether it's part of the existing resource for a new resource.
Some of those will be incorporated in and out in a normal updates and then we build as much as we can into when we do the next technical reports.
You know as has happened for example, with arbitrage of that over the years. You know we are continuing to explore outage. So we will get as many as the holes into this next generation as we can and will continue to drill that.
Prospect going forward.
Okay perfect.
Is it for me.
Again.
Thanks for taking my questions.
Thanks Ross.
Our next question comes from Lawson Winder of Bank of America Securities. Please go ahead.
Hi, Good evening wrote Allison, Steve Nice to hear from you well thanks for the update could.
And maybe ask about triple one more time and just.
I was curious why not finished the maintenance chirp blur.
Now instead of pushing it into 2023, so I'm, referring to the realigning of the second autoclave is that a function of your expectation that the restart could come kind of any moment.
Is there something else.
It has to do with rescheduled for November and the bricks that just arriving so we don't have enough bricks to go to to do all the work vow robbing over the next week and if if if we're not up and running we will at that time, we will do some work.
If not.
We will carry it across next year.
Okay excellent.
And then just in light of that.
Cost inflation.
Have you given any thought to.
Essentially increasingly.
Reserve gold price assumption for for Marigold, and perhaps other assets.
I will do that as normal course, when we kept to the technical reports in the resource and reserve calculations later in the year.
Okay you guys.
As we normally would do.
You guys normally do that in November is that right.
Yeah, we do we do it at the end of the year look I don't think we havent anticipated anything to answer your question at this stage Lawson.
I will review, what we know we do a little sort of a market review and consensus pricing anyway.
So I won't be driven arbitrarily buy offs just to raise the reserve process. If that's your question.
It will be just part of their normal course reserve reviews.
Yeah.
Okay.
That's clear and then.
Maybe just a bit of a broader question.
Hugh you mentioned M&A and definitely valuations are quite an historically low.
Maybe could you just update us on your thinking in terms of geography target metal mix and in development stage.
Look I mean, nothing has really changed in terms of.
Where we are and the types of opportunities that we would consider appropriate for.
Mrs.
So I think.
The previous discussions that we've been very open about with.
With the market about the.
Jurisdictional mix.
The rationale the strategic drivers.
Haven't haven't changed in the current environment.
But we're obviously going to be very cautious.
Lockup mentioned.
Terms of anything that we look at them or.
Or anything that comes across the desk.
To ensure its sort of fix fit so we haven't changed any of the the drivers the market Hasnt driven us too.
Pick up speed also slowed down.
Again, we do this.
As a matter of course.
And we're always sort of assessing different and different opportunities of permutations.
To to ensure we don't Miss something but at this stage that's it.
Okay sure great. Thank you for your comments today.
Good idea. Thank you.
Our next question comes from Levi Spry of UBS, Australia. Please go ahead.
Hi, guys. Thanks.
Thanks Nicole.
Maybe just a an exploration question.
I might have missed it but is there an exploration update G and can you. Please.
With <unk> <unk> co.
<unk>.
Yeah, Hello, Hello, Hello, Hello, how important is that.
Can you take us through what you found there.
Yeah.
So for.
<unk>.
I had been drilled previously.
There has been I guess when we've been exploring.
Around the area of real focus on looking at sort of underground.
And.
<unk> geologists how to look at it and.
Thesis that perhaps would work as a pit and we've been exploring that so we've had some relatively what about lower Brian intercepts relatively close to surface.
It seems that it has a reasonable extent.
So we're pretty excited about it we will dialogues the data that we've got when we when we do a release before the end of this year.
Okay. Thanks, Steve So that's on the all of the exploration is that not as much.
Got it got it.
Solids, sorry, Jetblue image will include outage and some other drilling that we've done with insurance, but.
C J.
And a number of.
C J.
Hum.
Which has the Buffalo Valley.
Trenton Canyon and the work around them.
Illinium I don't think we'll get anything from that because we've literally just solid types of in house on the ground there now.
Got you okay. Thank you thanks very much.
Got it.
Yeah.
Our next question comes from Mike Parkin of National Bank. Please go ahead.
Hey, guys I may have missed this but for seabee.
Talk about essentially back into high high grades.
Other than normal is that kind of in the same area that you pulled that high grade pockets.
Earlier this year that had that really drove that really good Q1.
Yes.
Harddrive pocket, so we stepped out and we've been drilling that because we were hoping to get back into it to try to what it looks like it pinches out directly below where we are now, but then opens up a couple of levels.
It will slow down and we're pretty excited about what it looks like a lot of that.
However, we're not going to be able to get there.
This year sorry.
My expectation is that we'll get that in 'twenty three.
But we need to we need to work out what we've actually go first and the other area that we got to ease of use in other areas and resilience with Jiggled the demand plan a bit to get us back there.
I mean is it kind of the same thing where.
Just some infill work kind of highlight.
Sweet.
The main part of our designs.
The one that we're going to do that we've got planned and this is since we've been in the reserve that very hard right pocket that we're in and the one that were exploring extending into asphalt the resource and reserve.
And we were chasing it down.
Okay and can you remind me maybe this is better for that exploration update but.
Hygiene, so into like the Fisher property.
I recall that the vein structures kind of prevalent at surface discovered through a forest fire or something like that.
How much focus are you kind of allocating to the cells versus up near.
Uh huh.
The.
Gap hanging wall area do you have a lot of rigs evenly distributed or do you still see kind of.
Low hanging through more to the north and.
Putting more of your focus there.
No we've been we've been drilling out here. It's obviously the work that we've got exploration, we've seen them all and it's about putting things in the quarter.
And then you know the the quantum of work we do.
So most of the work caused to convert to make sure that we can feed the plant.
Medium term targets.
A bit more work and then we you know we're still testing. These these are the areas, we're still pretty pretty excited about future and we think that there's a good probability we're going to get something out of that.
Immediately to the South Oh standpoint, we've got dry powder.
You know the thing the thing that we find that same toys that it <unk> seem to develop right and volume at that it gets better at depth right.
We've decided not to advance jive her into sort of resource development, yet until we get some deeper holes in pistol hypothesis that it will probably go at it.
Okay.
And just.
Just with respect to.
Turkey region. This obviously, it's pretty significant heat wave going through Europe , or can you comment on any impact to.
Regional Forest fires are you guys kind of fire away from anything that's active right now.
Hi, Hello, good there's been no impact for us Mark.
And around them on so.
So that's a good news.
Alright, excellent looking forward to that exploration update guys. Thanks, so much good morning. Thank you.
This concludes the question and answer session I'd like to turn the conference back over to Mr. Anton.
Alright, well. Thank you everyone. Thanks for joining us and.
Look forward to to to next quarter and continue updates around sharepoint and.
Until then goodbye.
This concludes our conference call please feel free to disconnect.
[music].