Q4 2022 Lundin Mining Corp Earnings Call
I will draw your attention to the cautionary statements on slide two as we will be making several forward looking statements during the prepared remarks and likely during the Q&A.
On the call to assist with the presentation and answer questions are tighter Paulson, our senior Vice President and Chief Financial Officer, and I'm wondering Andreas morale, our senior Vice President and Chief operating Officer.
Beginning on slide four I want to touch on a few of our 2022 achievements.
Position Lundin mining well to deliver on our strategy and industry leading returns in the years ahead.
We delivered solid production results in 2022, we substantially met our copper production guidance of 250000 tonnes and we achieved the upper end of our production guidance ranges for both nickel and gold.
Our portfolio of high quality operations produced over 400000 tonnes of copper equivalent metal.
We generated significant adjusted EBITDA operating cash flow and free cash flow from our operations, despite challenging inflationary conditions and lower year on year metal prices.
Throughout 2022, we made good progress advancing our many growth initiatives.
While ramp up of the nerves Corvo zinc expansion project was slower than planned it delivered sequential quarterly production improvements and is tracking well to our plans this year.
At candle area stay work evaluating expansion of the underground mines to add roughly 20000 tons of copper per year to the production profile has been completed.
With the potential changes to mining royalties and taxation in Chile being moderated from earlier proposals. We're looking forward to a potential investment decision upon approval of the 2040 <unk> EIA.
We announced the first mineral resource estimate for this site will be deposit earlier this month.
The maiden estimate is for nearly 180 million tonnes of indicated resource containing one 3 billion pounds of copper and $1 1 million ounces of gold.
We expect the estimate to increase with ongoing exploration efforts and influence our plans and how best to expand production at Chicago.
The <unk> zone at Eagle and a sequential Floatation project <unk> are now incorporated into our life of mine plants.
With the upper Killzone included Eagle mine life now extends into 2027.
Zinc Rubens recoveries and concentrate grades are expected to increase later this year with the completion of the sequential Floatation project.
We made good progress in 2022, advancing our large scale Jose Maria copper Gold project <unk>.
Detailed engineering is now approximately 40% complete and we are on track to deliver an updated technical report in the second half of this year.
We remain focused on value creation through disciplined growth and the prudent allocation of our shareholders' capital.
Yesterday, our board of directors declared a regular quarterly dividend of nine tenths Canadian per share the.
The annualized dividend of 36% Canadian continues to be a leading return amongst our peers.
We directly returned over $275 million in dividends in 2022, and indirectly returned a further $60 million to shareholders with the opportunistic repurchase of $10 8 million shares under our normal course issuer bid.
Further we increased strategic and technical strength of our team. This year with the addition of an experienced and proven leaders to our executive and operational teams as well as our board of directors and short lending mining is well positioned and focused on delivering on our strategy of operating upgrading and growing our base metal portfolio that provides leading returns.
Throughout the cycle.
Moving to slide five we previously released our production results earliest yourself speak to some of the details provided in our full results yesterday.
We produced 250000 tonnes of copper in 2022, including over 56000 tons in the fourth quarter substantially and meeting our production guidance chip patter and Eagle met guidance, while candle area and Henry Carver were modestly below.
Candle area as an average core was fourth quarter production were both impacted by throughput and to a lesser extent grade partially offset by better than plan recoveries at candle area.
Japan had a strong second half recovering from the weather and Covid absenteeism, which impacted the start of 2022.
We produced roughly 160000 tons of zinc or within 5% of our guidance.
While below plan, that's delivered its fourth quarter of sequential production improvement and overall, increasing production, 25% over that of 2021 the ramp up of this year is tracking well to plan.
<unk> fourth quarter zinc production was impacted by lower than planned zinc head grades.
And short term re secret is going to the mine plan to the new agreement area Eagle continues its reliable performance producing over 17000 tonnes of nickel in 2022, and achieving the upper end of the guidance range.
The upper end of the guidance range was also achieved for gold with production of over 154000 ounces.
Candle area met in Japan exceeded the gold production guidance ranges.
Similar to copper <unk> had a strong second half of the year, achieving better than planned gold recoveries in the fourth quarter.
I will now turn the call over to tighter to provide a summary of our financial results.
Okay. Thank you Peter and good morning, everybody.
Moving to slide six as Peter mentioned, we generated significant adjusted EBITDA operating cash flow and free cash flow from operations in 2022.
Despite the lower year on year average metal prices and the inflationary conditions that we have experienced.
Starting with the topline we generated $3 billion in sales for the year, including over 810 billion in the fourth quarter as metal prices strengthened.
This compares to the record setting $2 3 billion for the full year in 2021.
Our sales remain predominantly leveraged to copper with domestic generating 63% of the year's revenue sinking.
Zinc nickel contributed 12% each while gold contributed 7%.
Other revenues include sales from led cobalt Pjm's iron and other byproduct metals from our operations.
With metal pricing prices, finishing the year on a strong note 2020 twos revenue was positively impacted by $2 million of prior period price adjustments.
Including nearly $75 million of positive adjustments for the fourth quarter.
A summary of realized copper and nickel prices for the year are presented in the bar charts on this slide.
Ultimately, we realized prices of $3 75 per pound of copper.
$1 50 proponent of <unk>.
And $12 15 per pound of nickel for the year, including the adjustments.
Yeah.
At the end of the fourth quarter, approximately 90000 tonnes of copper were provisionally priced at $2 79 per pound and remained open for final pricing adjustment.
As did over towards the 6000 tons of zinc $1 five.
<unk>.
And nearly 5000 tonnes of nickel at $13 60 per pound.
Moving to slide seven production costs totaled close to one point something billion.
For the for 2022 and were approximately 20% higher than last year.
The increase that we've seen this year has largely been a result of brought inflationary impacts on prices of consumables, particularly diesel and electricity.
Primarily convallaria takata and it was corvid.
The chart on this slide presents the relative impact of key drivers to the total operating and capital costs for each operation for the full year.
The candelaria as full year cash cost was impacted by the successful early agreement of labor contracts into fourth quarter.
As well as higher energy and maintenance costs and lower production volumes than forecast.
New three year labor agreements were reached with three of the unions late in the fourth quarter well ahead of expiry of the existing agreements occurred this year.
Candelaria is fourth quarter production cost and cash flow were impacted by $20 million with.
With the pulling forward of the agreements bonuses.
On a cash cost basis. This represents <unk> <unk> per copper 40 year in 'twenty seven.
Proponents for the fourth quarter.
Okay.
<unk> costs are to.
Benefits from the roughly 50% lower electricity rates under our new power purchase agreement, which commenced on the first of January .
The new power purchase agreement also ensures a minimum of 80% renewables in the energy mix prioritizing wind and solar.
Cash cost guidance is for $1 80 per pound to $1 95 of copper in 2023 and includes the savings from the new power purchase agreement.
<unk> full year cash cost was better than guidance guidance benefiting from greater than planned gold volumes into fourth quarter.
Cash cost guidance is for $2 55 to $2 75 per pound of copper in 2023, mainly reflecting the expectation of higher year on year average consumable costs.
And to forecast lower production volumes.
It was corvus full year cash cost was above guidance, largely largely driven by a lower than planned volume of copper and zinc.
Well as cost inflation, particularly for electricity.
Cash cost guidance is for $2 10 to $2 <unk> per pound of copper in 2023 with.
With improvements expected of zinc and lead production volumes increase with the continued ramp up of set towards nameplate.
Equal full year cash cost was above guidance, primarily due to lower byproduct copper volumes.
<unk> forecast.
Combined with inflationary increases in operating costs.
Cash cost guidance is for $1 50 to $1 65 per pound of nickel in 2023.
With the expected year on year increase primarily a reflection of the planned lower production volumes.
<unk> full year cash cost of 32 cents per pound of zinc was 40% better than guidance, owing mainly to greater lead and copper byproduct credits and more favorable foreign exchange than planned.
Cash cost guidance is for 60 to 65 cents per pound of zinc in 2023.
Net of the lead and copper byproduct credits.
Yeah.
Total capital expenditure truck growth of our guidance with sustaining capex of $614 million compared to guidance of $670 million and total capex of 800 <unk>.
$45 million, including expansionary capital onset and to advance the <unk> project.
Lastly on this slide we have begun to realize the benefits of our foreign exchange hedging program intended to provide better visibility on our U S. Dollar funding requirements of future operating cost and Capex.
In the fourth quarter, we realized a gain of $6 million.
On the unrealized gain of $63 million on our FX hedging contracts.
Details of the program are available.
In the year end financials.
Okay.
Our full year and fourth strategic financial metrics are presented on this slide eight.
Full year revenue associated with over $3 billion and.
<unk> fourth quarter revenue was over $810 million.
We generated adjusted EBITDA of $1 3 billion for the year, including nearly $355 million in the fourth quarter, which is greater than the adjusted EBITDA agenda. It has over the previous two quarters combined.
Full year adjusted earnings were over 480 million adjusted operating cash flow will scenario $1 billion and free cash flow from operations was over $380 million.
Details of the adjustments are broken down in our MD&A.
We remain in a strong financial position, we finished the year in a very.
Modest net debt position and today, we remain in the modest net debt position of roughly $14 million.
We have significant liquidity with liquidity of approximately $1 7 billion.
Today, and recently received commitments from our leading syndicate lending syndicate to extend the term of our revolver by a year to April 2028.
Along with a modest reduction in our borrowing rate spreads.
Slide nine presents greater detail as to the sources and uses of cash in 2022.
Before changes in working capital our operations generated nearly $1 billion in 2022.
Net of approximately $6 6 million expense on the wholesome Maria project into second and third quarters.
And just over $300 million of cash taxes relating to prior year settlement as well as <unk>.
Installments for 2022.
Cash and cash equivalents at year end were approximately $119 million a decrease of roughly 400 million with cash cash flow from operations used to fund investments in our assets the acquisition of full somewhere year shareholder dividends of $275 million in share buybacks of nearly $60 million.
With that I'll turn the call back to Peter Thank you.
Thank you Tiger Slide 10 highlights a meaningful scale and material growth potential of our copper portfolio.
Yesterday evening, we filed an updated technical report for our candle area <unk> and Eagle operations.
There are parts each underpin our current guidance for their operations and the updated mineral resource and reserve statements announced earlier this month.
Kendall areas life of mine has been extended to 2046, reflecting the base case plan and operating cash cost forecast in the current price environment.
The base case plan does not yet contemplate the candle area underground expansion project known as <unk>, which has the potential to add roughly 20000 tons of copper production per year, nor does it include the potential restart of the <unk> mine.
We announced the maiden indicated resource estimated estimate for the <unk> discovery in early February and view it as the first of many iterations of increasing mineral estimates to come with.
We continue to evaluate potential expansion opportunities at Japan to best exploit the significant mineral resource base and the growing celebrate deposit.
I'll speak more just <unk> on the next slide.
We continue to make good progress on our World Class Jose Maria Copper Gold project detailed engineering is now approximately 40% complete and an updated technical report remains on track to be published in the second half of this year.
The project is being advanced in a deliberate and disciplined manner to minimize the risk and progress towards a construction decision at the appropriate time.
Slide 11 shows the conceptual open pit outlines the maiden soda mineral resource estimates as well as highlights some of the assays received during the fourth quarter.
The maiden indicated mineral resource is estimated to be nearly 180 million tonnes grading three 2% copper and <unk> two grams per tonne gold containing one 3 billion pounds of copper and $1 1 million ounces of gold.
Within the 180 million tonnes of zone 109 million tonnes at four 2% copper and <unk> two nine grams per ton gold, which is $5 for a copper equivalent.
This compares to the average head grade, Japan processed in 2022, or two 6% copper and one six grams per tonne gold.
We continue to be very excited about this discovery and believe it supports our view that many opportunities exist to increase the size and quality of our mineral resource base at Jakarta.
The deposit remains open and we expect the resource estimate to continue to grow with our ongoing exploration efforts.
Subsequent to the estimate cutoff date over 8500 meters were completed by year end. Our 2023 exploration program is focused on increasing mineral resource and testing Stefan anomalies, along the broader so over four mega trend and has to include 50000 meters 55000 meters gives me further drilling.
The potential implications. This system may have for our ongoing expansion studies are being evaluated as Soma continues to evolve with drilling.
Moving to slide 12 lending mining is a top 15 producer of zinc in concentrate globally and well positioned on the industry cost curve.
With the ramp up to nameplate capacity and improvements at zinc Rubin.
Production is forecast to increase a further 45% to 50% to 225000 to 240000 times by 2025.
As mentioned yesterday, an updated technical report was filed for <unk>.
The report supports our ramp up expectations, our guidance for the operation and the updated mineral resource and reserve estimates released earlier this month.
<unk> production is forecast to increase over the course of this year as initiatives to enable that to consistently achieve nameplate capacity are executed and resulting in improved overall throughput and metal recovery rates.
<unk> zinc production is forecast to increase over the next three years as head grades are able or to increase gives me on mine sequencing and metal recovery rates and concentrate grades are to improve the completion of the sequential floatation project. This year.
On Slide 13, we also filed an updated technical report for Eagle and incorporating the <unk> zone into the life of mine plan and extending the life of the operation into 2027.
Development of the upper kilos underway haven't begun in early January of this year and first ore is anticipated in 2024.
We are evaluating the potential of including the mineralization of the lower keel zoning that production plans as well as evaluating potential options to include a considerable amount of lower grade mineralization in the upper kilo zone.
While a smaller program at our other sites, we plan to complete over 15000 meters of highly efficient drilling from underground vehicle. This year with a focus on extending the life of mine by targeting conduits linked with Eagle East.
Lastly, Jose Maria <unk>, and some of the offer not only material copper growth potential at significant gold production growth as well with the development of Jose Maria Gold production is set to increase by over 130% and then further with potential expansions at <unk> and the development of settlement.
In conclusion on slide 14, we have a very desirable portfolio of quality mines and are advancing meaningful growth projects. Despite the inflationary and macroeconomic environment and site specific challenges, we delivered solid performance leading to strong operating cash flows and a strong financial position from which to grow.
We remain well positioned both operationally and financially to deliver on our strategy of operating upgrading and growing a base metal portfolio that provides leading returns for our shareholders throughout the cycle.
And with that operator, I would like to open the lines for questions.
Okay.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your Touchtone phone.
You will hear us retold prompt acknowledging your request.
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One moment. Please for your first question.
The first question comes from <unk>.
Scotiabank. Please go ahead.
Hi, Good morning, Hi, Peter can you please give us an update.
Basically what kind of milestones, we should expect to see with respect to Jose Maria in terms of what you need what needs to happen in order to reach that sanctioning decision and then I'm also curious on where the current thinking is on that.
<unk> partnership structure with respect to ownership for Lundin mining.
Thanks Ross.
Answering a couple of ways as we point to or mentioned in the in the presentation. So we are working towards having the updated technical report out on the second half of the year right now we're at about 40% on the engineering front.
Most of the money. This year is being spent on further engineering cups.
A couple of small if you will long lead items, but are upgrading to the roads Geo tech work, some permitting areas of that nature, but we won't really put out news on those specific items. So I think the biggest milestone will be when we come out with the updated technical report in the second half.
Can say that we are working very much in parallel at the same time.
A lot of the discussions on the partnerships and it hasnt really deviated from.
At the beginning if you will on who are the ideal partners would be.
Carrying a lot of the conversation some of which will be occurring.
Even next week, you can probably figure out where we are and then throughout the year. So.
A lot of people have made their way to come see us there seems to be a lot of interest in the project, but it's hard to predict until we start going and getting a bit more engineering or quite frankly that we can deliver to them as well.
Two.
To see where they stand.
Just as a follow up though what about in terms of agreements with the government with respect to being able to repatriate cash and those kind of milestones.
Nothing's changed from what we have reported earlier, so we announced decrease even before our previously and so that did change our ability to I think historically you can only keep 20% of the capital outside of the country and where we stand now at 60%.
Being said there are still a lot of <unk>.
Items that we're working on with the government as we work towards the back half of the year and going back to your question on the partnerships I would say arguably it's mainly.
Our focus has been on two areas. If you will I mean, there are three different opportunities, but our focus has been on to which would be.
Kind of a well known trading houses you could probably figure out the short list of ones that are most interested and then.
A handful of larger global mining companies as well.
Okay. Thank you very much.
Thank you. The next question comes from Daniel Major of UBS. Please go ahead.
Hi, yes. Thanks. Thanks.
Thanks, so much for the questions.
Questions on <unk>.
Kendall area.
<unk> indicated.
20000 tons of upside from the expansion relative to the Capex profile, sorry from the underground related to the Capex profile in the technical report can you give us any sense of pool.
Ballpark, how much additional capital would be required for that 20000 tons incremental.
And secondly, kind of a reminder of the upsides.
I'll Pepper also comes back into the mine plan. That's the first question.
Thanks, Daniel So, yes, Q, Jeff I would say that we obviously put a ballpark number in there, but it was 20% probably 22000 tons is what our initial studies are showing us as far as what that could add I don't think we've disclosed yet what the capex would be.
We have a few different kinds of options. If you will on how to fund that whether it be internally or externally, but we haven't disclosed what that number is yet.
With respect to <unk> we.
<unk> had a lot of them.
Support, which often doesn't make its way back to North America, but we are actually on the front page of the national paper down there last month with the minister of mines.
They are very supportive of actually trying to get all cap alrosa open but there are some things that we need to do from the technical side from the permitting side.
If we were able to get that back up and running in the next or start the process in the next couple of months you'd probably be talking in the range of $4 to 6000 tightens that could be added for 2023.
Yeah.
Okay, Thanks, and im assuming that would be consistent across the profile around 5000 tonnes.
The profile of the <unk> is that correct, yes, that's probably an accurate number due soon.
Okay Cool Thanks, and then my second question on <unk>.
School day looking at the <unk>.
Operating cost profile from the technical report.
You got it I guess.
Implied improvement 2024 to 2025 and <unk>.
Sure.
Cost per ton of ore milled volumes left.
11 of cost is reasonably stable, what sort of assumptions, you're making within that.
Power cost normalization in.
In Portugal.
Yes, so a couple of things one of which you.
I'm just going to grab the Tech report and maybe Mark can help on that one, but what I will say as well we are right now.
Production volumes are we have the people on site the costs on site to really as you pointed out the overall cost.
It should not be changing drastically, but we should be diluting that with with greater production volumes.
Okay, great. Thanks, So I didn't have time to sit through the 226 pages [laughter].
[laughter] yeah. Thanks, and then just funny one more if I could on the on Jose Maria Let me think about the capital budget and the parameters use the guidance you've given so far or is it fair to assume that the the spend this year is in addition to.
The the final capital budget that that you said.
Well I figured it'd be part.
The budget.
Yeah, it's not going to be an excessively budgets Oh man.
All right, we've got that for a minute and we're friends and trying to find a degree in in Michigan.
Oh poor report reasonably spent 17.
Seven 2 million and all that.
And 22.
So obviously Walter final investment decision is taken we we will we will.
Then you a number on a 0.4 basis from from the opposition work.
Okay. Thanks, a lot.
No problem.
Thank you. The next question comes from is Stephan.
Securities. Please go ahead.
Great. Thanks, very much guys I, just just kind of curious anyway. The guidance for this year's you know across the portfolio at 1.1 billion dollar spent on Catholics. Just wondering if you can maybe provide some sort of thoughts on maybe the cadence of that spending and and how that is going to dovetail with your cash flow and and maybe what you think about in terms of potentially drawing down yours yeah.
Yeah, I mean, clearly this year's topics program has quite a lot of exercise for pterocarpous cause it is.
You said 400 million and then Elizabeth I'm home as well.
But if you take 2022 is a proxy.
You know we generated a billion dollars.
From our operations and not quite a way actually includes $160 million spent on gosh talks which relates to affect the 21 sort of a pile of pucks Sacramento.
And it also includes an expenditure of 66 million though.
Where he.
You know so in in what was relatively challenging year, we still generated you know when you adjust for these items over a billion dollars in income.
Cash flow from our producing producing outfits.
Contact you know when you when you look at the topics, we haven't done the expiration expenditure and also the dividends I mean, it's it's it's very doable comfortably.
Top dollar here can program that'd be that'd be have also considering that strong balance sheet them to talk to that you have.
Hum Undrawn credit lines.
No good position to to handle this program at Harvard.
That just further to your to your question from a cadence perspective. It is it is pretty equal like you're talking about probably a quarter Q1, I think is going to be the high.
Okay.
And I believe.
You know over just over 300, and then you're gonna get a lower as as your through the year, but it's it's pretty Q2, three and four are pretty equal.
Okay. Okay. No. That's super helpful. And then just just maybe housekeeping just on on the the Jose Maria spend itself.
And then all of its gonna be actually capitalize this year cause I know some of the expense last year.
Yeah, I think for all intents and purposes. The vast majority of them will be that there might be a few expense ice on purely by and large somebody's house last yes.
Great. That's super helpful. Thanks, very much guys.
No problem.
Thank you.
If you do have a question please press star one.
At this time.
The next question comes from.
Morgan Stanley . Please go ahead.
Oh, great. Good morning, and thank you for the presentation, Peter and team a few questions left my side. The first one if we look at the production profiled him slide 10.
You show that your project sponsored with Salt over there I think.
Perhaps 50 to 60000 tons he thought the right sort of ballpark and then what what about gold.
Yeah, sorry, I was just looking at the page.
Yeah. It it's hard to put that specifically the scale. So I think it's to be determined I mean, what we have right. Now is we have as you've seen the you know pretty good size resource. There. It's opened in all directions, I think I mentioned that if you take them more higher grade core it's 109 million tons of called five four copper equivalent so.
Quite a bit more than what we're currently mining there at your powder and we've got a backlog of about 8500 meters right now with a lot of good results. There's one on the page that we've included that was quite recent.
That's four 238, so we've hit 90 meters of over two per cent copper equivalent and that's you know near surface and then we've got another 55000 meters will be drilling this year, but I'd say, it's a bit premature unfortunately to determine what that incremental production rate would be.
Okay. Okay understood. Thank you a simple question just some nonrecurring them items for 2022 single coast $63 billion. He's how much are your budgeting for 10 53, and then if you can pull menton b inventory right down in the underlying reasons that that'd be very useful thank.
Yeah, I mean on the on the sink also we have expensive $3 million and 2022 weeks.
Which run about $20 million is Sasha crush costs incurred.
And the rest of his his on the cool for work we have to do true 2023.
It's sort of remediation work on the zinc with himself and you also.
Crude from elements of a potential pines within dot dot number I'll.
I'll just stop stop pile on the ship all of this is strictly relates to you know higher input costs into the soft palate also harm movement cost.
Forward with.
The humor higher diesel costume particular.
Without the triggered an impairment of just over 60 $60 million.
This was a this was a big debate I would say, where the where the auditors kids trying to determine a diesel price on a long term stockpile is.
Not the easiest thing to figure out but in any case they had their opinions and you know diesel comes down and you can see that got a write up back again.
Understood very clear and maybe if I can squeeze one more on the Convallaria a technical report.
You have extended the mine life 24 to six but there is a meaningful stepped down and copper recoveries in the last two years Ah what what explains other things about 10 percentage points dropped recoveries.
[noise], Yeah, it's interesting I honestly I mean, it it is really driven by the metallurgical models. There. So I mean as we get into the boards.
Called the latter years of that current line plan and we're processing more stockpile that would really be the bulk of what's driving the expected recoveries at that time, but I'd say again, that's that's the current plan. So as we look to add or.
Potentially back Alley, copper Rosa and extent some of those my lifestyle. Further we can push those stockpiles on I think the better you know recovery sweetheart for longer as well too.
So.
Great. Thanks, so much.
Thank you.
Thank you. The next question comes from Daniel Nature P. B S. Please go ahead.
Okay.
Hey, guys. So I really couldn't follow up just doesn't come from me on this question.
Suddenly working capital you built <unk> capital again in a full school, which I suspect associated with professional pricing to an extent, but on this on the sink hole <unk>. The Ah Ah crew is that alright. So a total of 250 million of cash expected to fly.
10, 2022 with respect to this thing called <unk> <unk> working capital.
<unk>.
Yeah, I mean as I said, we we spent already attracted million and and also in trying to to be compared to Toronto about 5 million, which also sits within the 63.
So I think the.
Textual gosh elements I mean this is on the accruals, it's not confirmed yet but this is all about 48 million I think go.
Gosh impact for what attracted faith Street, that's b a car feet.
A crude for but you know when the work is still to be executed and let's see where we handle.
Okay, and and just just to follow up and I'll answer the Boardwalk and capital you know you you still <unk> Bill has lost yeah how.
How would you expect progression I the 2023, all else equal in terms, it's kind of pricing.
Yeah, I mean, I I I think as a general rule of Coleman I think we can say, it and and an increasing pricing environment you tend to build up receivable and therefore, you tend to build a working comfortable position and when.
We just we just Ah life thing of course, then when when prices.
Weakens again, then use tend to online that's where I'm comfortable so these are climbing differences and.
We tend to see 100 million plus or minus things from corner of the courtroom and these items.
Alright, Thanks, a lot.
[noise]. Thank you. The next question comes from Jackie principal at a ski a BMO capital markets. Please go ahead.
Alright. Thank you very much for taking my question congratulations on the corner I just wanted to ask I know you guys have talked about this before but it's in the MBNA now that you're moving your head office to Vancouver.
In the second half of the year can you just talk a little bit about what you expect in terms of timing and personnel. If you're taking do you have any major changes to to the head office team. Thanks.
Hi, Jackie Yeah. So some people have already made their way out and they're kind of working between both officers as we speak I think the majority of the transitional happened towards the end of August .
And there's been good buy in from the key people within the company. There are some people for a specific position that will remain in Toronto as well as we have begun a protest in Vancouver with a a very strong reception hiring some other people that won't be able to make the transition so.
Yeah, I can get into it and a bit more detail maybe on a on a separate call, but hopefully that answers your question.
Yeah, Thanks, very much Peter that's great.
Wow.
Thank you.
There are no further questions at this time, please continue with closing remarks.
Okay, well, thank you operator, and thank you everyone for joining today's call.
And as you can see I think lending mine had a very strong 2022 and I believe that we are in an excellent position as we enter 2023 and well positioned to achieve our our milestones. So we look forward to updating everyone on our next call and should everyone have any questions in the air and term please feel free to reach out.
Thank you very much everyone.
Ladies and gentlemen, this does conclude the conference call for today. Thank you for your participation and ask that you. Please just.
Connect your lines.
[music].