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.
And 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 the Beecher goals.
This call to discuss the results will be second quarter of 2022.
As you can see from initially as 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, what we're seeing in the world. So very good first half.
We have guided that we'll probably see some higher costs due to inflation, primarily in the second half of the year.
Because of the start first half the year, we remain on our guidance for 2022.
So talk a little bit about the details of the quarters financial results summary.
A summary before us for that.
He said very happy with the <unk>.
The other significant announcement, we made today was that we are not going to proceed at this time with the development on the ground are largely project our joint venture.
That venture.
Chevy of both parties.
We have decided to stop eating our economic thresholds to go ahead and develops the project we had heard that.
Process of doing a updated feasibility study, which while we complete the third quarter.
Hope so we could improve the economics of <unk> launch.
From what we have the previous study, which indicated that <unk> medical 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 downs.
High quality engineered works with Parker stub to actually reduce the footprint of the project as well.
So the goodness that we locked with well over $100 million off of the original projection capital cost which was overnight.
We actually managed by doing this different approach to the project technically to bring that cost.
By over $100 million Bucks.
<unk> really been at this time not surprisingly is looking at the construction perspective. So most of the gains from the reduction of capital were wiped out by the SEC.
<unk> installation the second thing, but how close 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. So Fortunately Colin it's hard to predict so we didnt get additional apps as we hoped for we have a bit of a drop in grade.
With that would that still drawing so for now the good news about the <unk> project is projected operating at all in sustaining costs have always been low and they remain quite low. It makes tissue is that the capital cost of prep. So we'll do it I will look at that at all.
Our alternatives.
<unk> and ourselves have signaled that we're going to look at our peers Gulfport and clearly they would.
With feature Gourmet.
Our permits.
Continuing with our sort of our resettlement plan and the things that we've been doing there. We've done lots of work there continue with that 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 with <unk> use of capital will be to consider even accretion without drilling that we're doing.
What's called alcohols, Etfs called a complex engineered court, which of which includes our.
By itself the business.
Perhaps such a line that goes all the way up to avocados north of it mainly been targets of between.
Continue to get really good drill results suggest we're significantly accretion to the 3 billion notes.
Source that we got at least before we have a common area.
Further north area of the Tacoma complex, we continue to get good results and most importantly, not only weathered saprolite material thousands of computers kept below that.
<unk> got some very good intercepts good great.
In the sulfide below so we do believe that there's tremendous exploration potential here, we've seen some of it but we're very much in the early stages of the coal complex with the drilling we've done when you look at the multiple targets the mamba zone itself without a carve out.
Really getting our attention in terms of in the short term it shows potential within 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.
Low programs can be a lot of rigs focused on our balance to see how big that gets but also drilling 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 carbon area distributors to truck the ore.
For a man of cargos, Cardinal or potentially other sources like the recent project, we acquired through Aqua resources. So we haven't.
The bears Richardson opportunities truckload from various sites jobs difficult Bill.
We're going to be.
Moving some of that material that later on this year.
Sure.
Some of these sources of minerals.
Our deposits, we will be able to increase production by trucking good grade material.
By 82 NFL starts of the year Workforces caught 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 Colette. So lots of news to Karl will be coming out soon with additional drills from this area lets you know why we're very excited.
As a significant project not only the first stage of trucking separate materials, but the second stage.
Which would involve building a second mill.
So are the Datacom the area.
So that's something worth taking a hard look at right now obviously, it's subject to further successful drilling results, but what we're seeing we're very confident that there's going to be a stage two here, which would entail subjects for the drilling and feasibility et cetera are 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 principally lineups for the year. We think that's the kind of potential that we're seeing so we'll be really focused on that.
In terms of other things, we've been getting some very encouraging drill results in Finland as well.
Project there.
Adjacent to Rupert resources exciting new discovery in Finland.
So more orders to come from that and beyond that we are I think as everyone knows that everybody in our sector is looking at M&A alternatives opportunities. 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 and we are able to continue to pay what is it.
Dividends on a yield basis with our sector, but also have significant amount of money to devote to exploration of potentially the next development projects, we have a carve out.
So if we find something we like we also can use our strong cash position will be looking at.
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.
Times, 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.
We've had tremendous success in every acquisition we've done in the loss of teachers.
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.
Quickly.
Second quarter some of those named results.
Firstly on the revenue side, we had a good good revenue quarter, we sold 205000 ounces at an average realized price of <unk> $161 per ounce for 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.
Total from our operating mines 209000 ounces from our three months for the quarter include our share of calibers results total production.
Reported was 224.
One ounces so both both of those totals probably England budget.
So cologuard is another strong quarter 123000 ounces in line with budget.
Those processing facilities actually achieved record quarterly throughput of 2.42 million tons in the queue.
Very impressive.
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.
Budgeted seat.
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.
I would 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 placed in Holly so not.
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.
His body production in Q2 54000 ounces.
Slightly above budget.
Ounces.
And with.
Process times, but 6% on a budget.
But was offset by lower than budgeted process 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.
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 at the <unk> underground mine, we did replace the underground mining contractor and those development rates and it looks like.
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 re day production in Wuxi.
Production release, a little early in the month. So it was 175180 5000 ounces, we regret it down by <unk> to between 165 months 75000 ounces for the year, but we did have an offset I Miss body because Ms. Daddy, what's already year to date at 7000 ounces ahead of budget. So we re guided Ms Patti upwards by 10000 ounce.
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 were $781 per ounce.
Fair to budget 2095 C. We're actually under budget or 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.
Sure, there's always led the way $639 per ounce out 64.
Under budget.
It was a result of lower than budgeted total mining processing and site John will cost.
Total mining costs were lower due to lower overall tons.
And that was partially offset by higher than budgeted fuel prices as I mentioned in.
The mine tonnes were lower than budget due to 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, or Dakota was a $136 per ounce, which is $24 under budget.
And in total under budget as a result of the weaker Namibian dollar.
Delays in concurrent underground mining costs, but again, partially offset by higher fuel prices.
Is that it was maybe the outlier for the Q.
It's cost for the <unk>.
Cost for the quarter were $840 per ounce, which was actually more than $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 include nursery caliber work.
$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.
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 2022, and we will catch up.
And then is that it was $1082 per ounce or 28 over budget and that really mirrors.
The fact that we were over budget on the cash cost side, partially offset.
Lowered 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 we're 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 off.
Operations on our share of caliber we were $52 under budget on the cash cost savings of $193 under budget year to date on the all in sustaining cost side.
As I mentioned the <unk>.
That's correct.
<unk> seen some some gains there in Q1 offset by some fuel price increases that we've seen.
And 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 it and re forecast of 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 guided on an overall consolidated basis that our cost guidance is maintained for cash costs. We think will come in at the upper end of our consolidated range of 600 $640 per ounce.
And on the all in sustaining cost side, we still think we'll be in that overall consolidated range.
$2040 per ounce.
So very positive I think on the overall operating results as they are in terms of all.
Although things that are happening in the operations I think Ken mentioned most of them obviously for call. It in Mali regional developments of Big things firsthand I've 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 Matt 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's the optimal way to feed the mill with hydro.
Saprolite in the short term and then also looking at the bigger picture of what we want to do maybe longer term with potentially a second mill at Monaco. So that's a big focus for US we are studies are underway.
I think we expect to happen by year end and then I think we now see that separately trucking maybe start sometime.
Second quarter.
23.
And I think the other main thing we focused on and in the quarterly results with looking at Grandma Oxy.
In evaluating their options or something <unk> already touched on that.
Couple of things to highlight on the earnings sites.
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.
Hits on the future income tax rate due to that and then also on the withholding tax side, we had 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 of gains on fuel hedges in the queue.
Year to date, we've seen $27 million and we took a look back at it.
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 call on the books that we expect to unwind over the course of the next year year and a half I 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.
Yes.
<unk> 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 2023.
And a couple of comments on maybe it's Oh, sorry on the earnings side, So earnings EPS, GAAP, EPS and <unk> per share and adjusted EPS also a <unk> <unk> per share.
Year to date EPS was <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 cap of $3 $25 million.
<unk> 12 per share non-GAAP basis, and then year to date.
Operating cash flows after working cap changes were $232 million approximately 22 per share.
To remind everyone as well just like we got it on the production side production is definitely weighted to the second half was probably 40% half 160% half two.
And cash flow is also weighted much more significantly in second half of the year.
We had guided operating cash flow initially $625 million for the year.
<unk>.
200 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 here in the second half and also just the timing of some working capital items.
Operating cash flow for the year currently forecast assumes seven $800 gold for the balance of 2000 $20 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.
One of the highest dividend in this sector for the U S a share 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.
Well I'll talk about three of our four questions. 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 government of Mali about collections.
Having a democratic elections.
Two years, we expect our March of two.
<unk> 2024.
That caused that agreement.
Welcome cost.
Cost to drop the sections that had really been hurting the economy about airports that serve us.
Charges around the World Today Africa, what is aware has been hit with things like the also the <unk>.
Our Russian invasion reward.
You create this obviously.
For many countries around the world, including Africa to ensure supply of those sorts of things. So it's good to see the sections are moved to the B Riley economy I suggest to start recovering year Gold productions remains a very very important part of the volume economy remains a very good relationship with the current government is we have to the previous governments that we're comfortable going forward.
About our let ourselves from many other western companies are successfully exported to develop for many years. If you go back and look at rentals et cetera are very decades of successful gold production government is our partner where major taxpayer.
In the gold space is a very important part of the economy.
It will remain so going forward. So are the government situation partner in Pensacola and will be.
We'll be at 20% partner as well.
Rest of the licenses.
Towards development. So we've seen that we've seen a proved.
Some of that volume.
Which is nice to see that 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 time getting supplies and as Mike alluded to.
The east up now and so.
So we're very positive about development in terms of Colombian politics, some people, where we speculate as part of our decision to embark of affordable luxury was based on the politics of the recently elected government Thats not the case at all it was an economic decision based on the.
The economic results of the study that we've been working on those results. We struggled with as I said for us to what extent, you're two months of capital to build their velocity at this time.
As I mentioned deflation hurt us et cetera. 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 public.
But we everything we've seen so far suggests to us that company wants to continue to grow their economy and a good way of doing that is responsible mining from everything we've heard so far.
We expect to open two new cover two already the permits.
Providing we havent permits might be oncologic. So a lot of political decision at all based on the economic factors of the utilization of capital today, especially as <unk>.
Yes.
I can't speak for HCA, but I do have heard that they're going to continue to pursue.
The <unk> project, which is a large copper gold project that would be exploited by block cave mining.
So there are continued to be positive looking at that project going forward, but I can't speak for them, but I believe they are going to continue with that with that project in Colombia.
So I just wanted to take those two comments over political situations.
Yourselves.
Looking at improved for sure in Mali.
And.
So there'll be a lot of political.
With that I'll open it up for questions.
<unk>.
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, you'll hear three Tim.
And your request and your question will be Paul.
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Your first question comes from Obs Habib with Scotiabank. Please go ahead.
Thanks, operator.
I've been Madden Tivo team.
Congrats on a strong first half and a really great to see all your 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.
I'm Lucky being 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.
Okay.
Look 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 investment.
So with joint ventures or potential as we've done in the past.
Mergers.
We're looking at that we're definitely looking at development projects with our construction team.
I'm going to be.
We are going to be working out of coffee here. Shortly in terms of road construction et cetera. So we havent team that can take on anything we've just we've shown virtually anywhere in the world.
So we're looking at development stage projects as well, but we're also open to the potential of friendly merger or 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 would.
I'd like to see some opportunities.
And the infant jurisdictions.
America, we'd love to do something we found the right fit.
But we're pretty we're pretty open.
Understates the potential significance of the citizens exploration drilling as well Theres a major discovery.
We are not just scenario play by any means we're getting some good mineralization.
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 it'd be labeled in the acquisitions.
We do they have to be accretive and they have to be very simplistic oil 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 and then just.
Switching gears to Anaconda in terms of tracking of the saprolite material.
No.
Mike mentioned that that's been pushed onto Q2 of next year.
Is this a function of your expectation on the permit additional exploration and development work required any more color you can provide on that.
Yes, 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, whether it be cardinal or others. Other other southern deposits being trucked out yeah. It's.
A good question and one that we probably should have been clarifying the hallway.
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 and so we're looking at not just getting mature from a 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 in the road in and 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 in for Colin.
I think just to be clear the taco as part of difficult complex, which is within the <unk> complex is part of what's been called the other combo store around the corner area, which that will spin.
That has been a very exciting target.
So this is really the results of the solvents to so we're on the same page.
When we talk about to tackle what put that perspective.
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 of them are kind of love to get it right. So let's first we've 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 <unk>.
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 <unk> or whether it's been Taco Makoto.
We're also taking we've been very open about this high level of phase, two which would be a standalone mill.
Would it take to do that so we're looking at.
What would the cost be it in the ounce profile, which would exceed.
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 I am.
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.
We've always maintained that.
As a growth opportunity for the company.
To pair up with another 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.
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 is really extraordinary and over 90% of the shares voted voted for the board of directors, which there for us for the strategy of the company and for management, so paint industry.
Leading.
Dividends, 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'll see our new resource report just came out continues to be the industry leader.
We do have strong mandate from our show is 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.
But in light of their updates this morning.
Just maybe get an idea of some of the assets that might be up for sale.
Sale or.
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.
Opportunities, but suffice to say that we get.
We are looking at opportunities of course, one of the areas that you look for opportunities is around where you are because you prove the ability to have them part of the world et cetera. There are some interesting opportunity. 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 no other way that further value in.
The Valley area.
Sure.
Where we could traditionally losses to fees diesel cold mill.
So our needs for sure when you look at the all the targets we have individuals who've got so far within difficult complex clearly if there's something that makes sense. When we look at it and also as I mentioned earlier other jurisdictions around the world. We think we're very strong position right now to do the right kind of M&A to continue to cultivate growth for existing projects with other opportunities.
Please.
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 they make sense and.
I know your share price is down a little bit today, but from I think.
The grammar Latte project is the right decision and I'll leave it at that.
Great. Thanks.
Thanks for your questions.
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.
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 year end, and we'll find out more than but but what would some of that.
Some of the things about that joke with attracted you and what is the near term opportunity here.
Sure <unk>.
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 are surface Billy can talk about.
Yes, sure I mean, we saw it really is fighting both the whole complex that being been talk on Mankato as to what place that comes into the sequencing. It's got some high grade material at relatively close to surface. They have they've actually done a very good job of.
Bringing their permit forward they've got a lot of their environmental baseline work done they had.
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.
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 Piper.
One of the first positions that we would bring in bringing in trucking into the colon for sure.
I also have some very strong exploration potential.
The stories are probably told US there is some good exploration, but there's a lot of potential like we're seeing in all of these cells versus potential I'll start with the potential at depth.
And will you be setting up any rigs on Danville call anytime in the near future.
Any what sorry to exploration resources.
Yes indeed.
The.
Yes.
In September we were on standby ready to get straightaway.
Okay, great well, that's all for me. Thank you.
So on that topic, we will.
I would say, but with other months, where will be coming out with additional.
This release also the exploration results, we're seeing from a Cola complex received some great results and we'll 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.