Q2 2022 SSR Mining Inc Earnings Call

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Hello everyone and welcome to SSR Mining 2nd 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 Hunchek from SSR Mining please go ahead.

during which you'll provide an update on our business and a review of our financial performance.

Our second quarter 2022 consultative financial statements have been presented in accordance with USGAP. These financial statements have been filed on Edgar, Cedar, the ASX, and are also available on our website. To accompany our call, there is an online webcast and you will find the information to access the webcast in our news release relating to this call.

Please note that all figures discussed during the call are in US dollars unless otherwise indicated.

Today's discussion will include forward-looking statements, so please read the disclosures in the relevant document.

Joining us on the call today are Rod Antle, President and CEO , Allison White, CFO , and Stu Beckman, COO.

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.

I'd like to start by providing a brief summary of our positive first half results.

The first half of 2022 demonstrated the continued resilience of our business in the face of supply chain constraints and inflationary pressures.

As you have consolidated production and cost metrics, track will against their user-like targets.

Our full operating assets produce 333,000 ounces of gold and all the sustaining costs of 1177 per ounce.

with solid margins and a trivial net income of $126 million.

Our financial strength drove us to continue our peer-leading capital return program.

During the quarter, we are now to buy back program that enables us to refurge us up to 10.6 million shares.

This together with our 40% dividend increase earlier this year, resulted in year to date returns and nearly $100 million to shareholders or equivalent to a 2.8% yield and growing.

Despite the positive performance in the first half of the year and numerous strategic milestones, we have continued to face increased cross pressures across the portfolio, especially in fuel, electricity, reagents and labour costs.

While we have been successful in bucking the cost inflation trend over the past 18 months, we are seeing costs now outpace our mitigation efforts.

As a result, we are very firm in our production guidance, all the at the bottom end of the guidance range, and we are revising our cost guidance higher for the first for the year to reflect these macroeconomic pressures and the temporary suspension of chirp luck, which we will discuss during the presentation.

This is what you're going to slide for. And on this next slide, I want to highlight our core values in a relatively different way. With J-Missions.

as long as we have a core value and focus for the company as it underpins the success of our business.

We released our fourth annual Sustainability Report in April , which highlighted the number of achievements during 2021 and some of the new initiatives for the company. and some of the new initiatives for the company.

During 2021, amongst other things, we progress our efforts to establish a science-based action plan to support our commitment on net-zero greenhouse gas emissions by 2050.

2022 will continue to roll out our Integrated Safety Management System with full implementation expected this year. We will continue to roll out our Integrated Safety Management System with the ship. We will continue to roll out our Integrated Safety Management System with the ship. Take it off the ship. the ship.

First of all, we'll complete third party closure reviews across all our operating assets to ensure a positive post mining future for our stakeholders and are also developing a water stewardship strategy as we see to continually reduce our environmental footprint going forward.

Front of the next slide, which is number five.

As we continue through 22, it is worth highlighting our impressive track record of execution.

While the suspension at Sherpa has impacted our full year projections, we're advancing opportunities to ensure the business exceeds low-end production guidance.

Looking towards the future, the key message is that we have established a baseline production platform where we see clear opportunity to deliver plus 700,000 ounces of gold production annually through 2030.

The Solid Foundation, coupled with the Abundant Grades Cygrids, being progressed across the portfolio, means that this is just the baseline that the company continues to build from.

Moving on to slide six.

And on top of our track record operational delivery, we've also established a proven history of discipline and a creative M&A as well as project development.

This includes the acquisition of Tiger Gold, which closed in the second quarter and expands our exploration platform in Saskatchewan.

We also close the Salah Pitarea in July and our non-core asset Salah has now generated $245 million in proceeds over the last four quarters.

For quarters, more than two times the street consensus value is dropped to those assets.

Give an abstract record of strong operations and project execution.

as well as the robust balance sheet, we continue to thoughtfully evaluate strategic opportunities across the sector and we remain disciplined.

with respect to any future transactions.

So on to slide number seven.

Over the last 18 months we have ensured our strong free cash flow generation is reflected in our capital returns program.

To that effect, we returned $191 million to shareholders in 2021 In effect, you've fought the same capital return yield

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 a 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 bomb with a too poorly dividend payment is that the capital returns are already $100 million or $2.8% yield.

Overall, a combination of our strong operating results, accretive and strategic M&A initiatives of peer leading capital return programs has driven significant outperformance for our shareholders, a trend we expect to continue with a multitude of catalysts over the coming 6-12 months.

So on to the next slide to discuss the quarter.

Just a few of the key points to consider relevant to the quarter.

First half production at 333,000oz of gold and all-in sustaining costs of $1177 per ounce was in line with our internal budgets and guidance.

However, on June 21st we had an incident at a church of Heblich resolving in a suspension of operations, pending the completion of improvement initiatives.

We have now completed these initiatives.

His painting verification and inspection work bother regulators.

After inspection and verification, we'll 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 and will provide further updates as required.

So with that, I'm going to turn the call over to Alison, who's going to discuss the financial performance in 2022 outlook on slide number nine. That's I'm Doctor IPS, so I'm going to discuss you bring more data available platforms from here to be more time bomb for the app. However, you don't have to fund sacrifices and those things to help the audience. There's going to be a challenge to make more pattern statements. Find the manager of Episodes and details on this packages, not just to explain how in!!) abundantly96 12 million machines us on MrPRPC we are actually gonna do that to cover the file and make sure it's an mission solution known to open up the number nine.

Thanks Russ. Good evening and afternoon everyone.

This quarter, we produced over 159,000 gold equivalent ounces and over 333,000 gold equivalent ounces in the first half of the year. In line with our expectations for a back half-weighted production profile.

As mentioned earlier, we revised our guidance for all in sustaining costs to $1,230 to $1,290 per gold equivalent ounce, and are targeting the lower end of our existing production guidance range. We are aggressively pursuing continuous improvement and cost management initiatives aiming to mitigate inflationary pressures where possible, while also diligently working to ensure higher costs do not remain a permanent.

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, capital 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. For more information, visit www.fema.gov

On the right side of 5'9", I'd like to provide some commentary on our reported 30 cents and deluded earnings per share that has calculated based on the company's definition of adjusted attributable net income per share.

A tributable net income of 27 cents per share was adjusted for foreign currency fluctuations during the quarter as the Argentinian peso and Turkish lira devalued against the US dollar.

along with minor adjustments for tax impacts and adjustments for the mark-to-market of our marketable security portfolio.

Let's move on to slide 10 as we discussed the outlook for the remainder of the year.

As you've now seen and heard from Rod, we have increased our 2022 cost guidance as a result of the Chirpler temporary suspensions and the persistent and pervasive inflationary pressures across the business that I had also talked about in the first quarter call.

While our production guidance remains unchanged, we expect to finish the year at the lower end of this range, again reflecting the temporary suspension at Chertler.

Our all-in sustaining cost guidance range is now $1,230 to $1,290 per ounce.

And the largest drivers 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 at all of our locations.

We continue to focus on business improvement and cost savings initiatives that help 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. grit-sized,

Moving now to the second quarter results in more detail, on slide 11, we'll talk about SSR's 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. 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 to project, which will account for approximately 300 million in total growth capital through 2025. The

Next, 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 base dividend payments are fully funded even in the event of a potential downturn in gold price.

Third, we remain committed to capital returns 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 was just over a month ago. On December 1st, the 2024 Lyric

Disrenewed by that program, further strengthsens our capital returns, 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 results in a minimum capital return of approximately 3.7% for the year.

Most importantly, we continue to be disciplined in our approach while ensuring our returns 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, Alison. And as always, I'll start with E. H.S. and S. We saw an improvement in our injuries in injury rate in the quarter, but it reminds above where we want it to be. And as always, an area of considerable effort and focus.

We were disappointed by the incident which caused the suspension at Sherfla and are working to review and reinforce our underlying systems and practices across the business.

I'll talk a little more on Cherklaw later.

Basically and the care for our teams, communities in the environment are core values and we believe are also foundational to our team.

Moving on to slide 13 and we'll talk about the share plan.

We completed our first scheduled major autoclave shutdown with rebricking of the face courses of autoclave number 2 in early Q2.

This is impressive performance from the autochaives given we started them back in 2018.

The planned maintenance shutdown took about three weeks to complete, which along with lower mine grades resulted in a slightly softer and fire-cost quarter. We delivered production of over 51,000 ounces at an all-in-sustaining cost of $1,1263.

We also continue to ramp up the flotation plant in the quarter. Overall, performance is good, though we are still presenting more carbonate to the autoclose than we had hoped, meaning we are using more acid than lime. We are working to improve this carbonate split, including in collaboration with one of the two universities.

Obviously the restart of operations is an overhang for the business, but I'm pleased to report that all of the improvement initiatives required by the Turkey Ministry of Environment have been completed and we are waiting for verification and approval by the relevant authorities. Today we had a visit from a local directorate to inspect finalised work.

improved process control of the pump feeding the heap leach and improvements to the berms and run-off.

was completed under the oversight of regulatory officials.

The team has moved a lot from the incident and we remain in close contact with the regulators and are aiming to restart the operations that are in the corridor. The team has moved a lot from the and we remain in close contact with the regulators.

On a more positive note, during the temporary suspension, we have been able to bring forward much of the three-week maintenance for the Clive 1 that was previously planned for the fourth quarter. And they were in a stronger place to the year once the chair floor returns to four operations.

With respect to our growth initiatives, we progress at the Chuck Mike Tepe extension or art edge remains on track to deliver first production in 2023. We're also progressing the C2 project through a PFS in 2022 and expect to release these results of this more optimized project to the market in 2023. QuinnSoft.com

We are excited by the potential of both of these high return, low capital costs.

Projects.

Moving on to slide 14, and we can talk about merigold. Merigold delivered quarter over quarter improvement. Though production time continues to be impacted by stacking up fine material from the North Piz.

Production of almost 46,000 ounces that are in all in sustaining cost of 1,058 dollars an ounce was largely in line with expectations of back half weight of production profile. Towards the end of the second quarter, we began taking higher grade material and we expect a significantly stronger production in half to especially in the fourth quarter. theta Calling

We stacked 71,000oz in Q2 and of that 30,000oz just in June as a result of the higher grades.

Permitting continued to advance at the Volme and we expect to receive the EA for the expanded Volme pit in 2024. We advance work for the Marygold District Master Plan and expect to release this report to the market in 2023.

Moons aus Micro High purity Couture slide

Seavey had another fantastic quarter producing over 38,000oz at an all in sustaining cost of $628 an ounce.

Following the record source, quarter the mine produced a record first half production of nearly 91,000 ounces at 611 dollars in ounce.

We are advancing exploration of the extension to the very high grade zone that drove the first half outperformance.

The good news is that we think that we have more, but...

We don't expect that we'll be able to mine this area until 2023. However, we have accelerated development to access another high grade area of the Santoy reserves and accordingly we've increased 2022 production guidance to 150,000-160,000oz.

A phenomenal outcome for the asset and the team.

I've touched on the exploration work that continued in the quarter in a few moments, but would highlight the progress of the CB District Master Plan that we also expect to release in the first half of 2023, which John can start to present himself saying.

There were some really exciting targets for future development that were accelerating in intent to include in this and subsequent master playing documents.

We've been drilling our Porky West target, which is showing promises of potential open-pint option for CV. In successful, this could provide a foundation to refrine the development of powerfights, CV.

Please move to slide 16.

We had a bounce back from a soft first quarter with production of nearly two million ounces of silver and all the sustaining costs of $1,520, $1,515 and $23, and $2,3 cents an ounce. Production is expected to increase in the back half of the year with better grades. What cost continues to be impacted by high inflation in Argentina?

Lastly, before we turn it over for questions, I want to jump to slide 17 and highlight some of the exploration initiatives that we progress during the quarter. We priority ter lors begins in March.

We progress exploration programs across the business in the second quarter and are preparing to release the results.

of summons raised efforts in the second half of this year.

Our artich resource development and expansion drilling continues as we eye additional growth to the all-body that could further complement the production profile outlined in the CDMP-21 earlier this year. Also in Turkey we have restarted drilling at the Carpe Hill project which is our fuel copper prospect in the Black Sea region.

In Saskatchewan, the team progressed definition drilling of a shame target, which is just off the whole road between the mine and processing plant. As I noted, we are also very excited about porky west and main target to the north west of the CV plant, where reason drilling and reinterpretation of existing resource modeling indicates the potential for an open pit target, which could operate simultaneously with the underground operation future.

Touch an additional damage.

allows us to reimagine the operation such as a process plan expansion or upgrade and potential for an all season road to the operation.

In Nevada, exploration progressed both near mine and more regionally.

Drilling is currently underway at Trent Canyon and Buffalo Valley, and near pit drilling at New Millenium is showing encouraging results. We've now increased the rig count for exploration to six illustrating the significant number of targets and the excitement for the asset. Some portion of the New Millenium drilling should be included in our annual resource uptight line of this year.

Lastly, at panel we started drilling for the first time.

Since 20 e thing.

The exploration team has identified a number of impet and near-mind targets that it's successful could provide mind-life, extension opportunities.

We plan to release exploration updates for the Chapele which of course includes Ardich, Copper Hill, CV, Merrigold and Pooner by the end of the year. And we look to incorporate as much as possible the extensions.

The exploration success into the new technical reports that Chair will see the Emerigals in 2023.

Thank you very much and back to you, Robert.

Right, thanks, Drew, and thanks, Allison.

Certainly as an industry we're facing significant external challenges in 2022, for which we'll remain vigilant and proactive to mitigate the impacts.

We remain on track to deliver our four-year production guidance and have a number of potentially cameras ahead from the asset base. The positive cameras ahead from the asset base.

We look forward to the restart of Operations at Sherpa and will keep the market updated with any further developments regarding the required approvals.

Finally, I do want to welcome John Ebott to the executive team and she will continue contribution to the business while we go through this plain transition of the senior leadership.

So with that Ariel 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'll hear a tone acknowledging your request. If you are using a speaker phone, please pick up your handset before pressing any keys. Please pick up your handset before pressing any keys.

To withdraw your question, please press star then two. We will pause for a moment as colors during the queue.

Our first question comes from Cosmos 2 of CIBC. Please go ahead.

Thanks Rod, Allison, Stu and team for the presentation. Maybe my first questions are around Chirpler.

to confirm or to clarify stew or rod. It sounds like, you know, the inspector has now been on site. And is it hazy or is she? And are you now just awaiting the receipt of the regulatory approvals?

So today we finished the work over the weekend and today we have the local inspector come out. There's a series of...

approvals that have to happen and we'll also receive visits from the ACRA Inspectorate as well and it's a bit of a process as we'll go through it.

Gotcha.

And after you've received all your approvals, could you maybe outline or 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? So I just want to restart it again. So I just want to restart it again.

Now, all upper will take us about four days to restart the order close from Colster.

And in terms of the plan maintenance, a bit of a silver lining, I guess, that you were able to push forward some of the schedule maintenance from the second half into the shutdown period. So to confirm, I guess, previously you had to schedule about three weeks in terms of a planned shutdown in the second half. So those three weeks will no longer be necessary and that will help you in terms of...

making up for last time when we talk about second half production is that correct?

time when we talk about second half production is that correct?

We've done all the mechanical work on the auto-fibes and we'll be able to push it out.

into thanks to you to do the face courses on the breaks.

And then on that too, I get, as you said, you're re-breaking, you know, the one auto-play. Next year, how long is that gonna take in 2023? Are we talking about one week or week and a half, or is it gonna take so 4-3 weeks?

It'll be the greatest particles, so it'll be that too, truly.

We don't do the hollow one, so I just pat on it.

Okay, you open it up and see if everything's sort of okay and then go from there.

Yeah, there are certain regions that get more wear than others and those are the ones that we've been doing in high school so there was a sign in the other all the time.

Great, and then maybe switching gears a little bit on CV here. Good to see that. I think you've 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, you know, the increase, is that, you know, based on the fact that you've outperformed in Q1 and Q2? Or is there some element to it whereby, you know, you're also depending on, you know,

some kind of outperformance in the second half as well to hit those the updated guidance production guidance for CV

Yeah, we're pulled forward a little bit of pirate, but it's within the reserve, so it's part of the mindless scheduling.

I wouldn't say it's high risk, because most of this is public and normal planning.

Of course. And then one last question just to wrap things up. As you mentioned, you've had to up your cost guidance for the year a bit. 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? What is now that you're factoring in? I only ask, given that as we talked about the composition for guidance is now a bit different.

Turfler, guidance has come down in terms of production. CV, you know, production has increased so far, CD centroid, you know, 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 caused your guidance to go up. So did you put in quite a bit of conservatism into your cost guidance? Maybe just some comments on that.

So, Cousins, I'll take that one. You know, we- Hi, Allison. Hi. Good to hear from you today. So, we did not put an additional factor, you know, into the inflation. We've seen a study run rate through the course of the year where inflation had certainly outpaced what we had initially budgeted. And so, we've set our remainder of the year and our cost guidance based on what we've already seen come through this year.

And you know, when some of the to elaborate a little bit further as well, you the number of ounces that are increasing at CBR driving down some of the costs there, but overall we're certainly seeing a track record of inflation increasing the cost that's being the crime of the organization.

Great. Thanks again to Alison, Stu and Rod of course and those are all the questions I have.

Our next question comes from Michael Saperko 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 Chopler, is there a schedule and plan visits in place? Should we be thinking, days, weeks, or is it possible that the operation could be offline through the end of September , just depending on the government's schedule? Just depending on the government's schedule.

They look more like I think we outlined it well in all the written documents as well as their own of any requirements and

and should just elaborate a bit more in terms of you know, just more physical activities on the site here in the sort of last 72 hours. At this stage, we're built into our planning, you know, start up in quarter three and based on what we know today, let's see how much that's assessed. up at the edge of40 West, Thank you very much.

Okay, copy. And then maybe following up as well on the previous question about cost. And maybe cost beyond 22. Can you elaborate on how you're seeing trends across your business? Are you seeing costs starting to stabilize? Are you seeing some stabilized others continuing to trend higher? Any kind of visibility into what you're seeing?

Yeah, hey Michael, we are definitely starting to see a little bit of, I would say, the peak on fuel, but we are not necessarily looking...

into, sorry, so...

We're definitely just past the peak on fuel and as we look to the future, we are definitely seeing that there will be some sticky costs that we're experiencing now that will continue into next year. But with the rapid pace that we've seen the rate of inflation change over the past few months, we aren't necessarily positive of what that exact rate is gonna be going forward, but we do expect that we will have some going into early next year.

Okay, great. 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 you're looking at these things on an ongoing basis, but have you come to any conclusions about changing strategies going forward?

Michael, I think we're about to undertake our normal planning cycle as a business. We always look to improve our cost base, either through the planning cycle or through the

supply chain opportunities, it could be continuous improvement, some operational effectiveness initiatives that we have, that's just normal cause for us. So we will build those into our planning cycle but as Alison sort of mentioned, sublease costs have definitely outpaced the work that we already anticipated for 2022. So we'll wrap all that up in these next few months.

And that will tell us where we're in that area.

Okay, and maybe last one, just back to Chopler and the Ardich startup next year, should be improving costs. Can you expand a little bit about how you see costs at Chopler trending going forward with the addition of Ardich in 2023?

I think the best guide to what our expectations without a trousers was the CDM-T21 that we issued the technical report earlier in the year.

Okay, great. Thanks very much. Appreciate the responses.

Thanks, Barbara.

Our next question comes from Oveis Habib of Scotiabank. Please go ahead.

Hi, I'm Arun, I'm from Arcane. Just a couple of questions from me maybe. Some of the questions I have regarding short or restart. Some of the questions I have regarding short or restart.

as well as cost inflation, I guess, have been answered. So just, you know, maybe a follow up on ARDIG. Are there any permits or anything pending regarding any regulatory requirements to advance ARDIG production in 2023?

Yes, and the permits have always been the pretty far far outage for us. So from a technical perspective it's relatively easy. So far all of the permits have been and the progress towards those as with all mining projects as multiple permits required. Have been moving in line a little bit faster than our schedule. And so.

we still on track for what we thought was the technique report. And just then moving on to the exploration for understanding. You mentioned obviously there's a lot of verplow grams in place all across. Are you looking to come out with some you know exploration updates and then kind of research updates and then kind of moving into you know these these mine plans or these MOSFET plans that you're looking to come out of within early 2022.

which deposit it's in, whether it's part of an existing resource or a new resource. Some of those will be incorporated in our normal updates and then we build as much as we can into when we do the next technical reports. But as has happened, for example, with artich over the years, we're continuing to explore artich. So we'll get as many of the holes into this next iteration as we can and we'll continue to drill that prospect code forward.

That's it for me. Thanks for taking my questions.

Thanks, Beth.

Our next question comes from Lawson Winder of Bank of America Securities. Please go ahead. Thank you for asking that.

Hi, good evening, Rod Allison. And Stu, nice to hear from you both. Thanks for the update. Could maybe ask about a tripler one more time. And just I was curious, why not finish the maintenance at the tripler now instead of pushing into the 2023? So I'm referring to the relining of the second autoclave. Is that a function of your expectation that the restart could come kind of any moment? Or is there something else? It has to hit out to do with which scheduled for November and the bricks are just...

So we don't have enough bricks to do all the work. They are arriving over the next week and if we're not up and running 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 the cost inflation. And then just in light of the cost inflation.

Have you given any thought to potentially increasing the reserve gold price assumption for Marigold and perhaps other assets?

I will do that as normal course when we come to do the technical reports and the results and reserve calculations by around here.

Okay, you guys, you guys don't really get those. Ask me normally what to do.

You guys normally do that in November , is that right?

Yeah, we do it at the end of the year. Look, I don't think we're having anticipated anything to answer your question at this stage, Lawson. We'll review it. We do a sort of market review and consensus pricing anyway. So won't be driven arbitrarily by us just to raise the reserve price after the e-toucher question. We'll be just part of that on the course reserve reviews. We'll be just part of that on the course reserve reviews.

Okay, that's clear. And then maybe just a bit of a broader question.

You mentioned M&A and definitely valuations are quite historically low. Maybe you could just update us on your thinking in terms of geography, target metal mix, and development stage.

Look, nothing's really changable in terms of where we are and the types of opportunities that we would consider appropriate for SSR. And I think the previous discussions that we've been very open about with the market about the jurisdictional mix, the rationale of the strategic drivers.

haven't changed in the current environment. But we're obviously going to be very cautious, like I've mentioned, in terms of anything that we look at, or anything that comes in across the desk to ensure it sort of fits. So we haven't changed any of the drivers. The market hasn't driven us to pick up screen or to slow it down.

Again, we do this as a matter of course and are always sort of assessing different opportunities and permutations to ensure we don't miss something. But at this stage that's it.

Okay, sure. Great. Thank you for your comment today. Good idea. Thank you.

Our next question comes from Levi Spry of UBS Australia. Please go ahead.

Hi guys, thanks for the call.

Maybe just an exploration question. I might have missed it but is there an exploration update due?

This porcupay is how important is that? Can you take us through what you found there?

So Paul, Paul, him have been real through this week.

There has been, I guess when we've been exploring around the area, a real focus on looking at the underground and our senior geologist had a look at it and had a...

thesis that perhaps would work as an open pit and we've been exploring that. So we've had some relatively wider but lower grade intercepts, relatively close to surface. It seems that it has reasonable extent. So we're pretty excited about it. Daylight, the data that we've got when we do a release before the end of this year.

Okay, thanks too. So that's on all of the exploration, is it? I didn't notice much in today. We're going to do them for each of the sites. So, in cheerful and mature and clear knowledge, and some are the really that we've done within Share Plot.

CB.

A number of satayas at Seabee, Marygold, which has the Buffalo Valley, Trenton Canyon and the work around... That, and that.

New millennium. I don't think we'll get anything from our planet. It's good literally just to have a toast and a toast on the ground there now.

Roger, okay, thank you, thanks very much.

Our next question comes from Mike Parkin of National Bank. Please go ahead.

Hey guys, I may have missed this, but for CB, the talk about potentially back into high grades, higher than normal, is that kind of the same area that you pulled that high grade pocketative earlier this year that have the really, drove the really good Q1. That have the really, drove the really good Q1.

Yeah so that hygrope poppet, so we stepped out and we've been drilling that because we were hoping to get back into it straight away. It looks like it pinches out directly below where we are now but then it opens up a couple of levels, a level or so down and we're pretty excited about what it looks like below that. However when... Notice how the

this year. So my expectation is that we'll get that in 23, but we need to work out what we've actually got first. And the other area that we're going to is another area that's in reserve, we've jiggled the mine plain a bit to get us packed it.

I mean, it's kind of the same thing where...

Just some info work kind of highlights a little sweet spot in the mind.

The one that we're going to do that we've got plan and this is sits within the reserve, then very high-grade pockets.

Explorer and extending, it's outside the resource reserve.

and we're chasing it down.

Okay, and can you remind me maybe this is better for that expiration update, but

As you move south into the Fisher property, I recall that the vein structure is kind of prevalent at surface, discovered through a forest fire or something like that.

Are you kind of allocating to the south versus up near the...

hanging wall here. You have a lot of rigs evenly distributed or you still see kind of low hanging through more to the north. And...

putting more of your focus there.

No, we've been drilling both here. Obviously the work that we've got, the exploration within the mine is about pulling things in that are closer and then the quantum of work we do, so most of the work close to convert to make sure that we can feed the plant, the medium term targets, get a bit more work and then we're still testing these other areas. We're still pretty excited about fissure and we think that there's a good probability we're going to get something out of that.

immediately to the south of JOKER. The thing that we find at Santoy is that it seems to develop great end volume at depth. It gets better at depth. We've decided not to advance JOKER into...

resource development into where you get some deeper holes and?lin in a Korean claved men pan Therefore each work of each one inspired a lot to intrude into ago's mission impact is positive. probably felt at it.

Okay.

And just with respect to Turkey region, obviously it's pretty...

So through Europe , can you comment on any impact of regional force fires, or are you guys kind of far away from anything that's active right now? from anything that's active right now?

I look at this pin art now intact for us Mark.

are in and around the mind.

mind so that's that's that's it.

All right, excellent. We'll come forward to that expression update. Guys, thanks so much. Good luck. Thank you.

This concludes the question and answer session. I'd like to turn the conference back over to Mr. Antle.

Thanks for joining us and look forward to next quarter and continue updates around Chirp1.

Until then, goodbye.

This concludes our conference call. Please feel free to disconnect.

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