Q2 2022 Fortuna Silver Mines Inc Earnings Call
Good afternoon ladies and gentlemen and welcome to Fortuna Silvermines, Quarter 2, 2022 Financial and Operational Results Call. At this time all participants have been placed on a listen only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mr Carlos Baca, Director of Investor Relations. Carlos, over to you.
Thank you, Jenny.
Good morning ladies and gentlemen, I would like to welcome you to Fortuna Silvermines and to our Financial and Operations results call for the second quarter of 2022.
Hosting the call today on behalf of Fortuna will be Jorge Alberto Anoza, President and Chief Executive Officer, Luis Dario Anoza, Chief Financial Officer, Cesar Velasco, Chief Operating Officer Latin America, and Paul Krill.
Chief Operating Officer West Africa.
Today's earnings call presentation is available on the feature presentation box on our homepage brand page.
As a reminder, statements made during this call are subject to the reader advisories included in yesterday's news release and in the earnings call presentation.
Financial figures contained in the presentation and discussed in today's call are presented in US dollars on this otherwise stated.
Before I turn over the call to Jorge, I would like to indicate that this earnings call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs.
This overlooking information is subject to a number of risks, uncertainties, and other factors. Actual results could differ materially from a conclusion, forecast, or projection in the forward-looking information.
Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
It's contained in the company's annual information form and mDNA, which are publicly available on a senior. The company assumes no obligation to update such overlooking information in the future except as required by law.
I would now like to turn the call over to Jolta Ederto, and also a co-founder of Fortuna.
Thank you, Carlos. Our business continues to perform well in the delivery of production and costs in the second quarter. We pre-released production figures in July 11. Both silver and gold are tracking in line with management plans and expectations to meet annual guidance.
for this first six months.
We produced 129,000 gold ounces and 3.3 million ounces of silver, achieving the middle of our guidance range for the year.
Gold accounted for roughly 70% of sales and silver for 20%.
with by-product zinc and lead making up the 10% balance. In spite of inflationary pressures on key consumables like diesel, steel, cyanide and explosives, and the strain on the supply chain, cost at all our minds are tracking within the range we provided at the beginning of the year for annual guidance.
Or Lindero, Yaramoko and San Jose mines are in the upper range of guidance but within it. But more importantly the fact that at the Seguera construction which is 66% complete as of the end of June today approximately 70% complete.
We are not experiencing any deviation with respect to our guided budget and timeline. We monitor active construction projects around the world and observe several experiencing challenges leading to significant deviations in capex and timeline. The strong delivery at FEGELA is the result of good planning, strong construction partners in the selected contractors, a consolidated owner's team, and years of experience put to work.
I'm very satisfied with the outcome so far and Paul Criddle, our Chief Operating Officer for West Africa, will provide you with details on the construction.
for the Taunum Dam. Cool.
On sustainability, health and safety, I want to highlight a quarter free of lost time injuries with over 3.1 million hours worked across all our sites.
Zero environmental and social incense of significance during the period as well.
In the quarter we realized a silver price of $22.62 per ounce.
and $1,870 per ounce of gold. Our headline financial numbers were a healthy free cash flow of $22 million.
Mine operating income of 32.5 million. Adjusted EBITDA of 58 million dollars with an EBITDA margin of 34%.
Net income of $1.7 million or 1 cent per share and adjusted net income of $2.1 million.
We remain well funded to meet our capital demands with a liquidity position of 136 million at the end of the period.
I want to say that this has been a difficult quarter for several peer mining companies reporting losses in the period. Although we met physical targets for gold and silver production and cost targets as I just described and managed to log a small gain.
We came below analyst expectations for earnings per share. Our revenue and earnings this quarter were impacted by the fact that 40% of our revenue comes from concentrate sales, where we were exposed to negative provisional pricing adjustments amounting to 6.6 million due to a steep decline in silver prices and the same prices from April to June . And also impacting earnings was a 4 million inventory right down the flow grade stockpiles at our Yaramoko mine.
On the exploration front, we have 12 drill rigs turning across sites with an annual budget of approximately $30 million. We work from a base of consolidated reserves that add up to approximately 4 million gold equivalent ounces as disclosed in our annual reserve statement.
Our exploration priorities are to continue to pursue several high-value opportunities at Seguela, where we keep adding new resources. The Sandberg deposit with 350,000 inferred ounces being the latest success of that program.
The other priority is reserve replacement at the San Jose and Yaramopo mines and also the definition of our investment case for the Gozura project in Burkina Faso this year.
In the quarter, we began our share repurchase program with an initial return to shareholders of $3 million.
For the execution of the program, we bring into consideration several aspects that include not only our valuation, but also risk to capital demands in a construction year and sensibility of our liquidity position to the current volatility in gold and silver prices.
With that as an introduction, I'd like to turn it into our chief operating officers to give you a bit more color on the business. Cesar, do you want to start? Absolutely. Thank you. Ladies and gentlemen, thank you for your time. be on line again. Our ATC is sending a
In the second quarter, the three operating mines in Latin America deliver a strong production.
of 1.65 million ounces of silver and 37,200 ounces of gold.
As you highlighted, for Latin America production for the first six months, in total 3.3 million ounces of Tilbert.
and 36,000 ounces of gold.
All minds are aligned to achieve annual guidance reach.
Allow me to make some remarks at the active level.
In Argentina, Lindero delivered a gold production of 29,000 ounces.
which represents a 49% increase year on year.
and is on track to achieve annual guidance range.
Gold production for the first six months of the year totaled 59,000 ounces.
During the second quarter, the operation delivered 99% of the 1.5 million tons of ore placed on the path by means of the
of the crashing and stopping circuit, demonstrating steady production performance.
The operation continues to focus on capturing higher productivity opportunities in all processes.
and has been successful at achieving important reductions on key consumables during the second quarter such as sulfuric acid, fresh makeup cyanide and diesel.
Moving on to Mexico, the San Jose mine delivered 1.38 million ounces of silver and 8,295 ounces of gold.
Compared to the second quarter of 2021, production variations are a result of a combination of 7% lower milk throughput and lower head rates, which are in line with mineral reserve estimates.
With the aim to improve production capacity and reduce total mining costs per tonne,
The operation has successfully implemented long-haul stopping in selected areas of the month.
In addition, a new underground shotcrete plant was commissioned, which is expected to reduce overall mining cycle times and support costs.
Silver and gold production for the first six months of the year totaled 2.7 million ounces and 16,534 ounces.
The operation remains on track to achieve its annual production guidance range.
The Cayama mining group, a steady performer, delivered 267,500 ounces of silver, 10.8 million pounds of zinc, and 7.6 million pounds of lead. Production for the first six months total 539,000 ounces of silver, 21.6 million pounds of zinc, and 16.7 million ounces of lead.
production at Cayuga is on track to achieve the upper range of guidance. Back to you Jorge. Thank you Cesar. Paul, please. Paul, please. Paul, please.
Thanks Jorge. Operations in West Africa continued their solid performance in Q2 and are tracking well with respect to our plans and budgets.
ongoing worldwide inflationary and supply chain pressures did not impact operations at Yaramoko.
Northern construction progress at Soguela.
At the Yaramoko mine, second quarter coal production of 24,553 ounces was in line with the plan.
Leaving the operation in a strong position with a year-to-date production of 52,788oz is on target to meet the upper range of annual guidance.
Moving to Cote d'Ivoire, construction progress at Saguaro continues to be steady and in line with plan. As of June 30 the project is 66% complete and approximately $96 million of the $173 million initial capital budget is accrued.
Construction activities are progressing on time and on budget, with first gold pour projected for mid-2023.
The project continues to be de-risked, having advanced through the critical bulk earthworks phase, and now advancing key above the ground scopes.
some notable milestones being the mining services contract was signed with Moto Angel and Longleat fleet ordered
currently consolidated in Europe and awaiting shipment to the plans of the third quarter.
Moto has commenced establishing their facilities as well as the mobilisation of its management team to start.
The Project Critical Paths Processing Client EPC agreement is on track at 70% completion.
while the HV grid connection scope is advancing just ahead of the plan at 81% completion.
The majority of equipment packages have been secured and first deliveries of these have began a robbing on SOG.
All major construction contractor mobilisations are underway with the critical SMP contractor now on site.
Water storage embankment is complete and we're now harvesting water ahead of commissioning activities with 75,000 cubic metres currently stored.
The first structural steel shipments have begun to arrive at site.
In parallel with the excellent progress on the ground, operational readiness scopes are advancing well with the operations team and systems continuing to be established.
A key member of the operational team, the general manager of operations, was hired during the quarter.
We progress on the next level of management staffing advancing according to the plan.
Dialogue is open and ongoing with the Mines and Budget Ministries in Cote d'Ivoire around the negotiation of Ciguelas Mining Convention.
Back to you, Holloway.
Thank you. Luis, you want to provide a financial update? Yes, sales for the quarter were $167.9 million. This is a 9% increase over Q1 2021.
I'm sorry, Q2 2021.
The higher sales were driven by the contribution of Yeramoco with 45.9 million
in the quarter and sales have been little $57.2 million, which were 67% higher than Q2 2021.
and represented an additional $23 million to our top line.
This was partially offset by lower sales at San Jose of 34%, representing a decrease of close to $21 million in sales. This decrease at San Jose was driven by lower seller prices and concentrate sales adjustments in the context of declining prices throughout the quarter, and lower production will be in line with our guidance for 2022.
Our average traditional realized prices in the quarter were $18.70 per ounce for gold compared to $18.12 in Q2 2021, and $22.60 per ounce for silver compared to $26.90 in Q2 2021.
Prices during the quarter however experienced, as Jorge mentioned, a steady decline, triggering 6.6 million of narrative concentrates sales adjustments, a one-time effect, typical experience at points of inflection, metal price trends. Around 3.5 million of this impact is the original mark to market at the end of June .
On a comparative basis, our accounting results are lower than Q2 2021 in spite of higher sales due to a reduction in operating income at the San Jose mine, which is not entirely offset by the contribution from Yaramoko in the quarter.
A large contributor to this effect is the increased accounting depletion at the Ramoco accounts with purchase price accounting.
With respect to operating costs, the quarter reflects the overall impact of inflationary pressures with higher costs, in particular at Lindero and San Jose.
In relation to our cost guidance on a consolidated basis, we estimate the impact to be around 5% of our cost base.
The GNA line item in our income statement of $14.8 million increased $5.6 million over the prior year. Page 12 of our NDNA provides a breakdown of our GNA which includes added mine general and administrative expenses from Mindero and Yeramoku as well as higher corporate GNA.
Corporal G&A expense in the quarter is as close to $8.1 million. We expect our grand rate to be in the range of $6 to $7 million.
Other items that impacted the quarter included an inventory write-off of low-grade stockpiles at Yeramoco, this was mentioned by Jorge, and an FX loss of $3 million, mostly unrealized and related to the impact a weaker euro has on our DAP collectible balances at our operations in Burkina Faso. For the rest of our hour, I'm Andrea
as the local currency is taken to the euro.
Our effective tax rate for the quarter was particularly high, mostly due to timing of the holding taxes. Our year-to-date effective tax rate at 42% was in line with our expectations for the meeting.
An additional item worth noting on the income statement is a $5.9 million gain on derivatives which consisted of $6.4 million of unrealized gains and a $0.6 million realized loss. The unrealized gain was driven by the drop in sink prices in the quarter.
Evital $0.50 per million was 5% above Q2 2021.
But $23 million below our EVP in the prior quarter as a result of lower sales and higher costs.
We reported strong free cash flow of $21.9 million in the quarter and $31 million year to date. This is free cash flow from ongoing operations before expenditures in new construction such as the regular. q
On the balance sheet, we close the quarter with $136 million of liquidity, with $20 million gone under our $200 million revolving credit facility.
Our total net debt including the outstanding convertible debenture is $110 million which provides for very modest debt leverage.
On the Tegeler construction, we funded $23 million in the quarter and $64 million year to date. On the project basis, we have funded close to $100 million of the $174 million of total initial capital declared.
That's all.
That's all for management panels.
Thank you Jorge. We would now like to turn the call over to any questions that you may have.
Thank you. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments via the phone lines, please press star one on your telephone keypad at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality.
If you do have any questions via the webcast, you can type your questions into the chat box and hit submit. Please hold while we poll for questions.
Thank you. The first question is coming from Trevor Turnbull of Scotiabank. Trevor, please ask your question. Let me see if we can get this. I see.
Thank you. Jorge, you mentioned, I think in your write-up, that there were some optimization projects at Lindero that would help potentially reduce some of the input costs that you have at the SART Plant. And I just wondered if you could talk a little bit about the timing of those projects and maybe how much of a benefit you would expect to get out of that in terms of cash cost savings.
Yes, I can allow –
Cessna here, Trevor, to provide some detail on those optimization cost initiatives. I think right now the center one is the optimization of the SART plant.
which allows us to significantly reduce makeup cyanide.
in the system. We budgeted in our feasibility study and in guidance, in our budget, I'm sorry.
cyanide in the range of, you know...
you know...................
half a kilo per ton.
Our expectation is that we can be...
a quarter of a kilo per ton.
So, and that also comes with more efficient use of sulfuric acid, which is a region that we use in the ZAR.
with the feasibility study and we have about 1.6
kilos per metric per cubic meter of solution and
In the budget, we budgeted about 1.2 and we're currently under a kilo per cubic meter.
Hey
Cesar, do you want to expand on a few of the other initiatives that you have? Certainly, Jorge. As you mentioned, Cyanide is one of the...
the key aspect here. We also have some significant improvements in the sulfuric acid consumption.
When compared to the feasibility study, we're in the range of the 40, 46% below in consumption versus feasibility so that we expect a full impact on cost reduction for a year, by the end of the year as well. And we have increased significantly our voltage productivity as well as lowering the cost reduction.
the diesel consumption for our mining fleet, which in today's prices obviously has a significant impact in the total cost.
The Nintendo Mine costs are competitive.
in the range of $1,100 per ounce, all in sustaining. That all in sustaining, still being impacted somewhat by corrective maintenance, the initiatives that we still have ongoing, seeking some of the productivity that we have. But as we advance, and I believe that, you know, costs should start gravitating more towards.
the lower end of 1100, 1000, that range. We still have
a fair amount of work on the side of corrective maintenance and whatnot that weighs on our own sustaining costs, no? Some of the legacies of the difficult commissioning phase through the COVID pandemic, right?
But I can say that in short the mine continues to perform well within our guidance and in a competitive range for costs, $1100 all in sustaining in spite of all of that.
work that we are still carrying.
No, that sounds good. I appreciate the details.
I had one other question about West Africa and again you'd mentioned the Sunbird resource that came in as a satellite deposit where you put out the first inferred resources. I was just wondering if we should look for another satellite deposit that you might be targeting that we might see a first resource maybe next year on one of the other deposits.
One of the things that was the driver for the acquisition on business combination with Roswell was our strong view of the potential of SEGELA to continue to produce this type of opportunities like we're materializing with Sandberg. Sandberg currently stands in the first research estimation at 350,000 ounces of...
drill results outside of the existing shell of inferred resources that encompass 350,000 ounces. So we believe that Sandberg will continue to grow. Outside of that, specific to your question, yes, we have about 40 targets in our inventory right now. We are drilling some of those. We look forward to publishing results, but we have an ongoing drill program testing.
targets outside of the deposits we currently have, you know, antenna and Cien, Cula, Agouti, and Sandberg now, right?
So, outside of those, yes, we are currently drilling and pursuing more of these satellites. We have 30 kilometers.
of the 30-kilometer stretch along the corridor, the structural corridor that hosts Séguéla.
And within those 30 kilometers, we have 40 targets in our inventory. And we're pursuing that with drilling. And sometimes companies slow down exploration as they embark in a construction. That's not something that we have done. We rate this as high-value opportunities. And while we are building, we continue drilling aggressively.
Well good, yeah, I look forward to seeing drill results from some of these other targets. That's all I had though. Thank you Jorge.
Thank you, John .
Your next question is coming from Don DiMarco of National Bank Financial. Don, please ask your question.
Thank you operator and good morning Jorge and team. Just continuing on with West Africa, could you tell us a little bit more about the QV prime zone at Bagassi South? I see that you're planning to do earlier development there and maybe if you could just talk about how much incremental capex you might be spending there in 2022 and what it means for production in 23 and 24.
Yes, Cubic Prime today is about 30,000 ounces of gold in our inventory and we are advancing this year with the development of Cubic Prime to provide further flexibility to the mine.
in 2024, sorry in 2023.
So we are also contemplating a change in mining method.
that will allow us to reduce costs.
as we mine this resource. We have brought into the budget for development this year $7 million that was not included in our budget and capital guidance at the beginning of the year. But we have assessed with Paul and team that this will be very well complex ability into 2023. The team has developed a very sensible plan around the change.
where it increases in the coming quarters?
No. No. That is not in our plan. At San Jose, as we have been mining through the reserves over the years, what we are experiencing is narrower production zones. When I mean narrower, five years ago at San Jose, our stopes were 20 meters wide. Today, they are more three-meter wide than five meters wide.
So the change in mining methods just assists us in guaranteeing that we can meet the nameplate capacity of the plant.
The change in mining methods just assists us in guaranteeing that we can meet the nameplate capacity of the plant.
we experienced in the quarter 7% less throughput.
compared to a year ago. But the reason for that was that through the quarter, we experienced three days.
of non-continuous blockades.
that impacted production for roughly five days. Locating international sport in Oaxaca.
So all of those issues were resolved and everything is good, but that's why we saw the shortfall of 7% in throughput compared to what we planned.
compared against the Euro.
But the change in mining method is providing higher flexibility to the operation in meeting throughput.
and lowering costs and making it a bit more efficient as well.
and lowering costs and making it a bit more efficient as well.
Okay, that's good. As a final question, you mentioned Lindero. The cost is actually fairly attractive, 1100, 1150 AIC and Q2, but it was noted in the report that the inflationary pressures are most pronounced at Lindero. Why is that? What is specific to Lindero versus the other mines? Is it because of the higher cyanide costs specifically?
It really has to do with a higher dependence in the cost structure of the middle to certain key consumers, mainly cyanides, B-cells, foric acid.
That's the key reason.
Okay.
Okay, well thank you very much for that. That's all for me.
Thank you. Your next question is coming from David Kranzler of Investment Research Dynamics. David, please ask your question.
Hi guys, thanks for taking my call. I just have a couple quick questions. Do you know offhand how much of the variance in operating income between the second quarter of 2021 and the second quarter of 2022 is attributable to the lower average cost of silver in 2022?
How much is a trivial to the lower price of silver?
Yeah.
I'll say you give us a second. We can be more precise here, but
the lower size of the lower tail
No, I don't think we're contracting.
I'll give you my top of my head.
potentially 40% of that lower operating income is the price of silver, right? But that probably can do a better job in terms of – Silver is down 16%. Silver is down roughly 16%. Gold is 30%.
Unchanged artillery is out 16%
Yeah, from 27 to 28.
21.22.
You also have to consider the effect that we disclose those average provision of prices for metals, but as we emphasize...
the adjustment in constant retails in some particular examples from, from sample say where the silver production comes from have that compounding effect. So yes, out of the top of my head I would say around 40%.
Okay, great. So I mean, I guess assuming that the price of silver goes back up, which is why everyone would invest in Fortuna, or not everyone, but one of the reasons, this potentially is just a one-time thing, again, assuming the price of silver goes higher.
I'm just depending on your expectations in the field of growth. Yes, I mean we deliver the ounces and the cost and this is a business driven by physical metrics. I'm just depending on your expectations in the field of growth.
That's right. And then the second question has to do with that $4 million write down of the low-grade stockpile at Yaramoko.
Is that?
Is that kind of a one-time thing?
Did you write it down enough so that if the price of gold maybe drifts a little bit lower, stays the same, that won't happen again?
The assurance is that for all material purposes, yes, we expect this to be a one-time thing and you have to do it in a one-time way.
with the way those historic inventories, which are quite large, over 100,000 stones.
I've been accounted for.
to basically based on an average cost accounting basis where that's not necessarily the logic behind.
the economics of...
taking those stock, accumulating those stock falcons on the surface, right? It's more on an incremental cost, or the main cost of that is...
regarded as a sunk cost to a large extent.
One is that we don't expect to accumulate much more of that low-grid ore as the Yeramoku and any significant amounts. Second, we are going to be addressing the way we account for those inventories. We don't expect anything of that size moving forward. If anything, it should be something that's going to be a little bit more expensive.
much lower significance.
Okay, great. And then just a quick follow-up on that. Is that low-grade stockpile, is that something that could be processed profitably if we get lucky and the price of bold moves, say over 2000 bucks an ounce?
So absolutely. All of that is the net content in those stockpiles is above the processingCan't Adam layer,
Absolutely, all of that is the metal content in those stockpiles is above the processing curve. Yes.
So at current prices that is profitable, I mean, stock out to process and like in principle the tail of a life of mine.
Great. Thank you very much. Jorge, I am sure I will have more questions for you tomorrow on the Arcadia Economics podcast. Thank you.
forward to it. Thank you.
Thank you very much. Your next question is coming from Ronald Branstetter, a private investor. Ronald, please ask your question.
Okay, hey, thanks guys for taking my call, Jorge and team. Most of my questions have been answered, but I wanted to ask about Yaramoko when I look back.
At the last four quarters, the all-in sustaining costs have experienced some rather significant variations. I guess two questions, what's driving that, and should we expect that variance to continue to be the case in the coming quarters and years?
Well, I can give a first pass to that answer and then allow Paul to elaborate a bit further.
Well, I can give a first pass to that answer and then allow Paul to elaborate a bit further. But – Okay.
What we're seeing with Yeramoco, and I have a, it's a question that has come up before from Roxco shareholders.
from the past.
is the fact that the great profile of the mind...
It has been declining.
consistently with the reserves so therefore we demand to be producing less ounces.
We're mining in the range of 5-6 grams.
seven and the
Therefore, the mine has been producing less ounces. If we look at the cost on a per ton basis, which is really what we manage from the operations point of view, costs remain very steady at around 160, in the range of $160 per metric per tonne....
producing less ounces. If we look at the cost on a per ton basis, which is really what we manage from the operations point of view, costs remain very steady at around 160, in the range of $160 per metric ton.
On top of that we might have some capital, but I want to say that on the cost side, on a per ton basis, the mine has been performing very steadily over the last four quarters.
over a year. From an all-in sustaining perspective, the lower ounces, the
the capital requirements impact cost from the perspective of all-in sustaining. Paul, do you want to elaborate more?
Yeah, I think very much in line with what Jorge was saying, Don.
the mind's capital intensity
relative to the gold production changes at depth. The strike length has come in so it's shorter but we're still having to develop the decline at the same rate to access the bottom of the mine.
relative to gold production.
will be where it is. I think it will be fairly consistent with where it is now for the next little while before the mine turns into a harvesting mode, i.e. we get to the bottom of the mine, we stop developing the decline and then those costs come way down for the last 12, 18 months of the mine's life while we're just in stoping harvesting mode. So I don't anticipate any increases.
until we get to the bottom of the Bitcoin.
Okay, okay. So you're incurring some expenses. Along those lines...
Did the $4 million write down during the quarter? Did that impact the all-in sustaining cost?
The answer is yes to the question.
Okay, okay.
both the stockpile write down and as per the question of Don earlier
the additional capital to develop across the QV prime is included
in the quarter and the forecast for the year, which do tracks within our garden.
Okay, that's all I have. Thank you.
If I may address a prior question on the impact of the silver price on the operating income drop over on $10 million, I just want to confirm that yes, the silver price effect would have been within 40 to 50% of the overall drop in operating income and that would be coming, again mentioned, mainly from the capital series.
Thank you very much. Your next question is coming from Adrian Day of Adrian Day Asset Management.
Oh yes good afternoon um listen I may have missed it at some point but I just wondered if there was any kind of update
on San Jose with regard to the lawsuit and the discussions that you were having with the you know with sermonettes and others.
Adrian, good morning. Short answer is no. We are still in the court procedure.
where we are a, you know...
appealing to revoke.
resolution.
We are of the strong view and it's a view that gets stronger as the process advances.
That's it.
without discussing the fundamentals, just the form.
that they used renders that resolution invalid.
Just by mere procedure, that resolution, reducing the term of our EIA is invalid. So we have a high expectation or degree of conviction.
that there is a fatal flaw in how the Secretary of Environment
office produced that resolution impacting the term of our EIA.
Although I'm cautious because we still need to hear from the judge.
in the fact that the judge was quick to grant the company a stay of execution and protection.
And
is also a sign that we take positively.
In essence, there have been no changes. We have not heard from the court. We expect we should be hearing from the court this year.
Okay. Okay. Thank you.
As a reminder, ladies and gentlemen, if you would like to ask a question, please press star 1 on your phone keypad.
Okay, we appear to have no further questions in the queue. I will now turn back over to management for any closing remarks.
Thank you, Jenny. If there are no further questions, I would like to thank everyone for listening to today's earnings call. We look forward to you joining us next quarter. Have a great day.
Thank you ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.