Q2 2022 B2Gold Corp Earnings Call
Yes.
Ladies and gentlemen, please standby your conference will begin momentarily.
[music].
Thank you.
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Good afternoon. My name is Pam and I will be your conference operator today at this time I would like to welcome everyone to the <unk> Gold second quarter 2022 financial results Conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad. If you would like to withdraw your question. Please press Star followed bite you. Mr. Johnson you may begin your conference.
Thank you operator.
Welcome everyone to <unk> conference call to discuss the results will be second quarter of 2022.
As you can see from the initiatives, we put out we had another very strong quarter, we beat our budget number of areas.
Very importantly, we were able to maintain our guidance for 2022, even in this current environment inflation, obviously of course will vary.
First house.
We have guided that we'll probably see some higher cost you inflation, primarily in the second half of the year, but because of the strong first half the year, we remain on our guidance for 2022.
So talk a little bit about the details of the quarter financial results, but I just want you all summary, before us for that so as you said very happy with the <unk>.
The other significant announcement, we made today.
We are not going to proceed at this time with the development of Neurologic project, our joint venture.
That venture.
Chevy of both parties.
We started to stop our economic thresholds to go ahead on development project, we had heard in the process of doing any updated feasibility study, which will be complete third quarter year.
We have some hopes that we can improve the economics of <unk>.
From what we have the previous study, which indicated that to give us on our call to about a 15% IRR, but we thought that was potentially through the accomplished in two ways.
One was to look at the sort of different engineering approaches and decided approaches to try and bring that capital cost down through <unk>.
High quality engineering works with worker sub to actually reduce the footprint of the project as well.
So the goodness, so we locked with well over $100 million off of the original project capital cost which was overnight.
We actually managed by doing this different approach to project tactically to bring that cost.
By over $100 million Bucks.
<unk> really been at this time I was surprised to be looking at.
With respect to so most of the gains from the reduction of capital were wiped out by the effect of inflation. The second thing that happened was we were hoping that with some additional infill drilling we could perhaps improve the resource assessment accretion that our routes. So we can provide the capital and the capital cost by warehouses, which made sense for <unk>.
Currently it's hard to predict so we didn't get that acquisition levels. As we hoped for we have a bit of a drop in grade with that with infill drilling. So for now the good news about the <unk> project is projected operating at all in sustaining costs have always been lower they remain quite low the biggest issue is that of the capital cost approach. So when I look at the <unk>.
Curtis.
And ourselves have signaled that we're going to kind of look at our approach going forward and clearly they would.
With each gourmet.
Our permits.
Continuing with our some of our resettlement plan and the things we've been doing there we've done lots of work there continue without work, while we evaluate the alternatives going forward certainly the alternatives would be.
Is there a smaller project we've played around a lot of it before in the past is there a smaller project that makes sense.
Large scale, we were approaching with or does it makes sense to look to sell the groundwater project. So both companies are each company estimated termination and we're reviewing all the various alternatives, but we do have permanently place.
This decision was based on.
Using our capital our very strong financial position and how we want to utilize our capital.
Part of that focus going forward now interest use of capital will be to consider even accretion without drilling that we're doing.
What's called alcohol Ges Cola complex Soc engineers like to call it, which you which includes our.
<unk> Microsoft business.
Perhaps such a line that goes all the way up to the north of it mainly been targets of between.
Continue to get really good drill results suggest we're significantly increasing to 3 million ounces.
Source that we got at least before we have a common area and the further north area of the so called the complex. We continue to get good results and most importantly, not only the saprolite material <unk> below that.
<unk> got some very good intercepts good great.
In the sulfide below so we do believe that there's tremendous potential here, we've seen some of it but we're very much in the early stages of the coal complex with agility. We've dealt with this look at the multiple targets the mamba zone itself without a carbo.
Really getting our attention in terms of in the short term it shows potential with it you laid out so far to be leather for Cola type deposits, and maybe how that sort of size and location of potential.
In addition to that.
Oil programs can be.
A lot of rigs focused on our balance to see how big that gets also Julian maybe other targets have other deposits that we now have in this bill. So we're very focused on that because we cannot the short term. We're planning as we said before stage one ethics exploiting the anaconda area distributors to truck the ore.
For a man of cargos, cardinal or potentially other sources like the reasons for the projects we acquired through Aqua resources. So we haven't.
Richardson opportunities truckload from various sites stops difficult bill.
We're going to be.
Moving some of that material, but later on this year.
Sure.
Some of the sources of minerals.
Our deposits, we will be able to increase production by trucking could create material.
By adding to our sales reps a year workforces. So it's a real positive it really really improve the license line, which will be coming out soon electrify it significantly improves what was already a strong placement Martin square or for colon. So lots of news to Karl will be coming out soon with additional drills from this area, but you know why we're very excited.
As a significant project not only the first stage trucking separately material, but the second stage.
It involves building a second mill.
So are the Datacom the area.
So that's something worth having a hard look at right now obviously, it's subject to further successful drilling results.
What we're seeing we're very confident that there's going to be a stage two here.
Until such as further drilling feasibility et cetera building, a second bill so difficult complex Ahmad.
So what we're seeing so far clearly has the potential to significantly increase gold production on phase III tour, but also on stage two so could difficult complex what they principal payments for the year. We think that's the kind of potential that we see.
So we'll be really focused on that.
First of all the things we've been getting some very encouraging drill results in Finland, as well as development of our project there.
Sure.
Jason to Rupert resources exciting new discovery in Finland.
So more news to come from that and beyond that we are I think as everyone knows that everybody in our sector is looking at M&A.
This opportunity. So we're looking at a few things right now we're in an enviable position because we've a very strong cash position, we've decided not to go ahead and become a lot disorder extremely strong cash position with no debt.
To continue to pay dividends.
Dividends on a yield basis in our sector, but also have significant amount of money to devote to exploration of potentially the next development projects, we have a carve out.
But also if we find something we like we also can use our strong cash position when we look at everything.
Without the need to significantly until our shareholders. So we're looking for opportunities there aren't many projects were left without there. There's a few and sometimes it's hard to find the best partner willing dance partner in terms of looking to grow in our sector. These days, but we continue to look at if we do a deal it will be because we view ourselves meaning it is because we will start selling that we liked what we think is.
Accretive for our shareholders and they will do what we've always done which is to bring our great technical team to bear not only to build these projects, but also our exploration team has had tremendous success in every acquisition. We've done in the last 15 years are finding additional growth, which we don't pay for an acquisition, but we've had a great track record of doing that.
So that's where we sit we're very very happy with the quarter spikes and I'll tell you why we think we're very well positioned for continued growth of our existing assets.
And also looking at the potential for responsible sensible accretive M&A.
With that I'll pass it over to Mike and I will open up after Mike for the question.
Thanks, Mike.
So let's start running quickly through.
Second quarter some of those named results.
Firstly on the revenue side, we had a good revenue quarter, we sold 205000 ounces.
Average realized price of <unk> $161 per ounce.
Revenues of $382 million, so it's a bit higher than we thought we were going to have obviously, we sold a bit more than we thought.
Positive production and also.
Revenue was higher than we forecast.
On the production side.
From our operating mines and 209000 ounces from our three months for the quarter to include our share of calibers results total production.
Reported was 224000 ounces so both both of those totals across England budget.
Cohort with another strong quarter 123000 ounces in line with budget and its too cold.
<unk> processing facilities actually achieved record quarterly throughput of 2.42 million tons in the queue.
Which is very impressive.
The higher than budgeted throughput was offset by lower than budgeted mill feed grade as we use the gain low grade stockpiles to feed that additional.
Did seed.
Reminder, to difficult as production is expected to be significantly weighted to the second half of 2020 to win when mining reaches the higher grade portions of phase six and difficult.
Should also comment on the recoveries in the quarter were slightly lower.
92, 4% in the budget at 94, and Thats, mainly because.
We had lower availability of line.
Because some of the sanctions that were in place and Holly So.
That led us to reshape some of what we were doing.
And reduced recoveries in the quarter. However, with the sanctions now lifted all reagents are now available so that shouldn't be an issue going forward.
As battery production in Q2 54000 ounces.
Slightly above budget, but 1000 ounces.
And with.
Process times, but 6% of budget.
But was offset by lower than budgeted processed grade.
The higher than budgeted throughput really came from continuous optimization of the grinding circuit and the lower than budgeted processed grade came mainly from lower than budgeted mining grades at the bottom the Montana pit, which is now effectively mined out.
Yes.
And protocol to 31000 ounces slightly below budget 2000 ounces below budget.
And that was really due to slower than planned ramp up in development that will shape underground mine, we did replace the underground mining contractor and those development rates in the books that are going on.
<unk> have improved.
We now expect it will hit development ore.
In the third quarter. This current quarter, and then stope ore production sometime in the fourth quarter. So it's basically we pushed out one quarter from where we thought we'd be.
Yes.
And we did see.
Lower grades as well because we're not getting into that we will check high grade as quickly as we thought so when we take all that into account we did regain production in wuxi.
Production release, a little early in the month so.
It was 175180 5000 that we got it down by <unk> to between 165 months 75000 ounces for the year, but we did have an offset.
Daddy because Ms Daddy, what's already year to date at 7000 ounces ahead of budget. So we re guided mid body upwards by 10000 ounces and so overall.
Total production guidance for the full year remains unchanged.
And Clive alluded to or mentioned.
The positive cost results for Pizza, we definitely saw some good results on the cash cost side.
Including all of our operations, including our share of caliber total cash costs are $781 per ounce.
Compared to budget 2095 C. We're actually under budget are broadly our budget I guess, we can say.
And that's when you look at that it's really as a result, we did have lower than budgeted mining tonnage at some operations, but this was offset at all operations by higher than budgeted realized fuel prices, though.
Those two main factors into account, we ended up broadly on budget for the quarter.
<unk> has always led the way $639 per ounce out 64.
Under budget.
It was a result of lower than budgeted total mining processing and site general costs.
Total mining costs were lower due to lower overall tons.
Mind and that was partially offset by higher than budgeted fuel prices as I mentioned in.
The mine tonnes were lower than budget due to its a temporary change in mine sequencing and again relates back to those eco what sanctions the availability of some reagents and other supplies meant that we have temporarily changed your mind sequencing we expect.
To regain that and put it back on track for the full year.
The North Dakota, Our Dakota was a $136 per ounce, which was $24 under budget.
And in total under budget as a result of the weaker Namibian dollar.
Delays and encourage underground mining costs, but again, partially offset by higher fuel prices.
Is that it was maybe the outlier for the acute sense of its costs for the cash cost for the quarter were $840 per ounce, which was actually more than a $100 over budget and that's almost exclusively due to higher than budgeted diesel and fuel costs and the Philippines.
And then the all in sustaining cost side, we really saw that mirrored again.
The consolidated all in sustaining costs, including Austria caliber worth.
$1111, which was $78 under budget.
And that would be against budget was mirrored adult sites apart from his body and it's really it's a function of again lower than budgeted.
Budgeted cash costs higher gains on fuel derivatives and lower sustaining capex.
And the lower sustaining capex.
As we've seen quarter to quarter is just a function of timing, we think that the full capex that we expect to incur for the year will be incurred later in 2022, and we will catch up.
And then is that it was $1082 per ounce or 28 over budget and that really mirrors the.
The fact that we were over budget on the cash cost side, partially offset.
Lower budgeted capex in the Q, but again, we think those will be caught up.
And year to date, a couple of comments on year to date, where we are for the six months. So were 12000 ounces ahead of budget overall total, including all operations are sure caliber. So that's.
That's positive like we said, we can retain our overall budgeted production guidance for the year and the cash cost side, including all operations on our share of caliber we were $52 under budget on the cash cost of $193 under budget year to date on the all in sustaining cost side as I mentioned.
The cash cost.
Just seeing some some gains there in Q1 offset by some fuel price increases that we've seen.
Coming in mainly in Q2, the all in sustaining cost side, we're well under budget and that is a function as you mentioned.
Those lower cash cost timing.
Capex was.
All of which we expect to see reverse later in the year and also some higher derivative gains, but overall very positive first half of the year performance.
And so what we've seen overall is that we did see fuel prices increase through the queue and as we look forward and re forecast for the year, we did forecast higher than budgeted fuel prices across our operations. So that led us to revise the second half comp guidance for each operation we revised upwards.
Because we had such a positive first half when you put it altogether.
Still look guided on an overall consolidated basis that our cost guidance is maintained for cash cost. We think will come in at the upper end of our consolidated range of 600 $640 per ounce and.
And on the all in sustaining cost side, we still think we'll be in that overall consolidated range.
Dozens of thousands of $40 per ounce.
So very positive I think on the overall operating results as they are in terms of.
Although things that are happening in the operations I think.
You mentioned most of them obviously for Cola in Mali regional developments, a big thing firsthand Clive touched on all of those things.
We do expect to see that deal closed sometime mid mid September and is part of that part of what we disclosed in the releases. We are looking at how best to optimize that for Cola complex regional development, we've got.
Four licenses there now include men and Andy back below the Monaco to tackle and now we've got <unk> coming unexpected mid September and so were really we just been looking at those just trying to decide what is the optimal way to feed Ola mill hybrid saprolite in the short term and then also looking at the bigger picture of what we want to do maybe longer term with.
Typically the second mill at Monaco, So that's a big focus for US we are studies are underway.
We expect to happen by year end and then I think we now see that saprolite attracted maybe start some time in.
Second quarter.
23.
And I think the other main thing we focused on in the quarterly results looking at Gram a lot too.
In evaluating their options or something <unk> already touched on that.
Couple of things to highlight on the earnings science.
You did see some volatility on foreign exchange.
So we saw some foreign exchange gains and losses were mainly due to cash holdings that we hold in each country and some of the payables that we have locally and then on the tax side, we did see a higher taxes than we expected in the second quarter and we tried to highlight that in the release and those are really related to two things one was again fluctuations in foreign exchange.
Led us to some.
It hits on the future income tax rate due to that and then also on the withholding tax side.
Approximately $22 million of withholding taxes that we had to pay in the second quarter related to dividend intercompany dividends that we declared in Mali, which is a little higher than we thought they were so we have to pay the taxes upfront and that impacted the overall tax charge.
One other item to note on the derivatives side, we do have we are still seeing the gains and the benefits of our fuel hedging program, we had just under $8 million.
Gains on fuel hedges in the Q and year to date, we've seen $27 million and we took a look back.
How that's done since really the inception of Covid March 'twenty.
When it came on and we really started seeing fuel prices start to fluctuate and since March 20, we.
Either realized or recorded gains of approximately $50 million since I've started so we've got about $20 million last on the books that we expect to unwind over the course of the next year year and a half.
We will see also on the fuel side that.
We had a rolling program, where we were trying to put on 50% of one year's needs and 25% of next year's needs as we've seen fuel, peaking becomes too high.
We've stepped back from putting on new hedges, because it's very hard to tell exactly what the volatility that is but we still have 30% of our knees hedged for the balance of 2022 and 18% in 2022.
And a couple of comments on maybe Oh, sorry on the earnings side So earnings.
GAAP EPS of <unk> <unk> per share and adjusted EPS also <unk> <unk> per share.
Year to date EPS is <unk> 11 per share and adjusted EPS was <unk> 10 per share.
And maybe just a couple of comments on the on the cash flow side. So cash provided by operating activities for the quarter and this is after changes in working capital of $3 $25 million.
<unk> 12 per share non-GAAP basis, and then year to date.
Cash flows after working cap changes were 232 million approximately 22 per share.
Remind everyone as well.
Got it on the production side production is definitely weighted to the second half was approximately 40% half 160% half two.
Cash flow is also weighted much more significantly in the second half of the year.
We had guided operating cash flow initially $625 million for the year.
<unk>.
<unk> thousand 800 dollar gold price for fiscal 2022.
We re guided now slightly downwards to $575 million for the year and that reflects the fact that we're now using $700 for the second half of the year.
And like we showed in our cost guidance, we do expect there to be some higher costs due to inflation in mainland Europe and hit in the second half and also just the timing of some working capital items.
Operating cash flow for the year currently forecast assume $1500 gold for the balance of 2000 $22 million to $575 million.
We ended the period with $587 million in the bank 600 million Undrawn on the line is in great shape liquidity wise.
And we continue to pay that.
Mentioned to one of the highest dividend in this sector for the U S. This year per quarter, approximately $170 million annualized for the year. So very good shape there.
That rounds out I think what I was going to mention on the financial results. Thanks, Mike just a couple of things.
We'll talk a little bit of a question. So lets talk politics. There has been some positive developments in Mali recently with the ethos of the organization of West African States.
Reaching an agreement with the current coupled with Mali about.
<unk>.
Credit collections.
Three years, we expect our March 'twenty.
2024.
That caused that agreement.
Welcome cost.
The cost to drop the sections that had really been hurting the economy about airport charges.
The Armstrong World Today Africa, what is aware has been hit with things like the also the.
The Russian invasion reward.
<unk> is obviously.
There are many countries around the world, including Africa chose to supply those sorts of things. So it's good to see the sections are moved to the B Riley economy is just to start recovering year goal.
Production is remains a very very important part of our economy, we remain.
Very good relationship with the current government is we have to the previous governments that we're comfortable going forward about our let yourself from any other question companies are successfully exported to develop for many years. If you go back and look at rentals et cetera.
Decades of successful gold production government is our partner where major taxpayer.
And the goal is basically to say a very important part of the economy.
It remains so.
So our government support them as a partner so call it will be.
We anticipate we'll be at 20% partner as well.
The rest of the licenses as were moving towards development. So we've seen that we've seen a proved environment in Bali.
Which is nice to see the local people for the economy also it makes it easier for US we've done an excellent job of staying on we're beating budget during a difficult type of getting supplies and as Mike alluded to that so the east up now and so we're very positive development in terms of Colombian politics. Some people who've already speculate as part of our decision to not go forward with regard to launch a.
It was based on the progress of the recently.
Government Thats not the case at all.
This is an economic decision based on the.
The economic results of the study.
Those results were.
Struggled with as I said for us to establish.
Huge amounts of capital to build their velocity at this time.
As I mentioned deflation hurt us etcetera. So at the end of the day. It started startup decision a political decision at all.
We're waiting to see the new Minister Brides pointed the bonuses and the Columbia government, but we everything we've seen so far suggests to us that the company wants to continue to grow their economy that a good way of doing that is responsible mining and from everything we've heard so far.
We expect to open two new covered to audit the permits.
We have a permit to might be oncologic, so not a political decision at all based on the economic factors of the utilization of capital today, especially.
Yes.
I can't speak for HCA, but I do have hurt that theyre going to continue to pursue.
The <unk> project, which is a large copper gold project that would be exploited by block cave mining.
There continues to be positive looking at that particularly forward, but I can't speak for them, but I believe they are going to continue with that with that project in Colombia.
Just wanted to make those two comments over political situations let ourselves.
Yet approved for sure in Mali.
And.
So there'll be a lot of political disease with that I'll open it up for questions.
Yes.
Thank you ladies and gentlemen, we will now begin the question and answer session. If you have a question. Please press star followed by one on your Touchtone phone.
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Your first question comes from Obs Habib with Scotiabank. Please go ahead.
Thanks, operator.
Hi, Clive and Madden Tivo team.
Congrats on a strong first half and a really great to see full year production in the specialty cost guidance unchanged.
Couple of questions from me, maybe starting off with the fact that you mentioned earlier on the call.
<unk> been put on hold the focus will be to will now beyond exploration advancing anaconda as well as M&A.
Maybe a little bit more clarity on the M&A side.
Yes.
At mid stage development projects still or would you consider producing operations as well ultra maybe maybe some color on any jurisdictions you would focus on.
Yes, I think I think you'll make some.
We've been in our history really looking across the whole spectrum of potential acquisitions in terms of stage of development.
We are looking at some junior exploration companies, where perhaps there is some kind of.
Strategic investments also with joint ventures or potential as we've done in the past.
Mergers.
So we're looking at that we're definitely looking at development projects with our <unk>.
<unk> team.
You are going to be.
Are going to be working on a car to your short interest real construction et cetera. So we havent team that can take on anything.
So virtually anywhere in the world. So we're looking at development stage purchase as well, but we're also open to the potential of.
Friendly merger.
Our acquisition of them.
Producing company as well so right across the whole spectrum of I think.
In terms of jurisdictions, we really don't tend to limit ourselves but of course, we will.
I'd like to see some opportunities.
And the induced restrictions.
American we'd love to do something we found the right fit.
But we're pretty we're pretty open that wouldn't.
Understates the potential significance of the cylinder exploration drilling as well there is a major discovery.
We are not just scenario play by any means we're getting some good mineralization.
At some new zones, there that we're seeing so that's going to be a focus as well right across the spectrum in terms of M&A as I mentioned in my earlier remarks, we're an extraordinarily strong financial position to utilize cash as well as potentially some shares in terms of M&A activity, but we're going to maintain the discipline that we've shown for 15 years and before that at Veeva vault in the acquisitions.
We do they have to be accretive and they have to be very realistic well prices going forward. We're just going to continue to have a lifetime, which is to do accretive acquisitions.
Upside potential.
We will continue to pursue.
Thanks for that Glenn and then just.
Switching gears to Anaconda.
Terms of tracking of the saprolite material.
Mike mentioned that that's been pushed onto Q2 of next year.
Is this a function of your expectations on the permit additional exploration and development work required any more color you can provide on that.
Yeah, I think I'll pass that to bill, but I think the yes, I'll just pass it over to Bill just want to understand what we're going to be doing it with we're going to start to see material, but it would be cardinal or others. Other other.
Deposits being trucked out yes, it's a good question and one that we probably should have been clarifying the whole way.
We always talk about this kind of end of 2022 as a time period, where we could do it.
If we so chose but you have to remember we're trying to optimize the whole district. So we're looking at not just getting material from <unk> Taco, but what does it look like for and hope for a whole optimized area. So.
Yes, there are some permanent permitting things that we have to go through but we're also trying to find out where the best or is to get to the mill first and so it's not just looking at been tackled by itself. So we picked we picked Q2 is the way that we feel like all the permits can be in place get our equipment and put the rote in and get get or down there, but I would I would argue that.
From your side, you Shouldnt really focus on that because those ounces have already been replaced with ounces from other places like Cardinal and for color.
I think just to be clear the taco as part of difficult complex switches within what we call Capex as part of what we call. The other called the Solvay Anaconda area, which tablets.
With that.
<unk> been getting some of these really good results and so that's just so we're on the same page. So when we talk about to tackle what put that perspective.
Sure.
Thanks, Bill Thanks, Robin and just kind of just follow up on that so essentially you're looking to come out with a kind of a master plan for the district and that's expected by the end of this year.
Yes, so remember we.
Kind of got four four studies going on at two a mechanic love to get it right. So let's first we got the underground right, which we didn't really talk about we got the underground study, which has shown really good economics, we're actually now looking at.
Contractor bids and how does that all work to try and move that forward. So that'll be coming out this year, an update on that you've got the phase one which is what you're talking about which is kind of like the regional play whether it's auto or whether it's been taco our mankato.
We're also taking we've been very open about this high level phase, two which would be a standalone mill.
Would it take to do that so we're looking at.
The NPV of trucking and when would that come in and then the whole thing is being optimized by Whittle looking at all of our sources to include the coli Cardinal and really trying to put the best ounces and that will definitely come out by the end of this year.
Got it okay. That's what room you guys. Thanks for taking my questions.
Excellent.
Your next question comes from Anita Soni with CIBC World markets. Please go ahead.
Hi, Thanks for taking my call I just wanted to follow up on what you just said clients.
Just want to make sure I heard correctly did you say that you would be open to a friendly merger of a producing company.
Sure.
Always may change that this is a growth opportunity for the company too.
To pair up with the producer that's obviously something that we're here to build shareholder value and we'll look at every opportunity to do that I think we like the we like where we are today in the sense of our ability to take on additional projects.
Grow the company, but also our ability potentially to add some additional production to what we're doing we just had a very strong ringing endorsement from our shareholders about the last couple of months ago, an hour less at our AGM, we're somewhere close to 80% of the shares that are outstanding and the mutual reported which was really extraordinary and over 90% of the shares voted voted for the.
The directors, which there for us for the strategy of the company and for management, so paint industry leading.
Dividend, maintaining a strong cash position being debt free with the technical teams that we have the financial teams and all the things that we have in a responsible mining team and you will see our nutritional somebody report just came out continue to be the industry leader.
We do have strong mandate from our shows to continue to grow the company and that's our focus we'll look at various alternatives.
Our divestiture of that.
Okay. Thanks.
Wanted to.
Okay.
Actually my questions were with regards to whether or not you would consider in Senegal.
Specifically thinking about gold asset in light of their.
There are updates this morning.
Just maybe get an idea of some of the assets that might be up for.
Dale or available for sale some of the regions other than friendly merger that you might be interested in.
Yes, I mean I can't comment on specific.
<unk>.
I used to say that.
And are looking at opportunities of course, what are the areas that you look for opportunities is around where you are because you have proven your ability to have them part of the world et cetera. There are some interesting opportunities. We're looking at a whole lot of different things as well as you saw the Aqua deal. We're looking at there is there's value to be added because we have a mill or maybe a second go other way set further value in.
The Valley area.
Where we could traditionally losses to fees difficult milk.
So our needs for sure when you look at the all the targets we have individuals because so far within difficult complex clearly some of it makes sense when we look at it and also as I mentioned earlier.
Jurisdictions around the World. We think we're a very strong position right now to do the right kind of M&A to continue to cultivate growth for existing projects with other opportunities.
Okay I just wanted to close out by commending you for being disciplined I've seen a lot of companies just rush headlong into projects, whether or not that makes sense.
I know your share price is down a little bit today, but from I think are pausing. The Grandma project is the right decision and I'll leave it at that.
Great. Thanks.
Okay.
Ladies and gentlemen, as a reminder, if you do you have any questions. Please press star. One. Your next question comes from Don Demarco with National Bank Financial. Please go ahead.
Hi, operator, thank you for that and.
Congratulations Clive and team on another strong quarter.
My question has to do with the Aqua acquisition and then don't go is it.
Is the opportunity here is something that is relatively near term like for example are the permits in place is there potentially near surface mineralization.
Weatherford trucking or Standalone.
Just if you could provide a little bit more color on what you see is the opportunity here I recognize that we'll wait for the master plan at the year end and more signed up more than but but what was some of that.
Some of the things about Dan joke with attracted you and what's the near term opportunity here.
Sure.
Also of note Aqua Aqua is a pretty.
<unk> acquisition for us because of just what you talked about the potential for good grade materials surface Billy can talk about.
Yeah sure I mean, we saw it really is fighting both the whole Anaconda complex that being been talk on Mankato as to what place that comes into the sequencing.
Got some high grade material relatively close to surface.
They've actually done a very good job of.
Bringing their permit forward they've got a lot of their environmental baseline work done.
Got it.
Mining plan, which showed it trucking it somewhere at some point.
So that made it very easy for us to think about what it meant for US we actually we've been out in the field, we see certainly an easy trucking route to for Cola and so the answer is it's got all the things that we would look forward to really fight for one of the first positions that we would bring in bringing in trucking into Nikola for sure.
Also has very strong exploration potential.
Stories are partly told US there is some good exploration, but theres a lot of potential like we're seeing in all of these cells versus potential I'll start with some potential with that.
And will you be setting up any rigs on dental.
<unk> anytime in the near future.
Any what sorry.
<unk> replacements.
Yes indeed.
The.
In September we were on standby ready tickets.
Edwin.
Okay, great well, that's all for me. Thank you.
So on that topic, we will.
I would say both with other months, where will be coming out with additional.
Initially saw some of the exploration results, we're seeing from a Cola complex, we're seeing some great results and we will share those.
I would say by early September .
Okay. Thanks again.
Thanks.
There are no further questions at this time. Please proceed.
Okay, well, thank you operator, and thank you all for your attention and thanks guys.
A few questions and good answers thanks, everyone. Good day.
Yes.
Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines have a great day.
Yes.