Q4 2022 B2Gold Corp Earnings Call
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Okay.
Good day my name is Sherry and I will be your conference operator today I would like to welcome everyone to the Beach, you gold fourth quarter and full year conference call. At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star.
Our one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question Press Star One again please.
Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker, Mr. Clive Johnson, President and CEO and director you May begin your conference Sir.
Sure.
So we're here to discuss the year end.
For 2022.
Had a very good year again achieved our production of consolidated.
Cost guidance.
And it's been a very strong position for the year.
We also declared another dividend.
That's for sure.
Court.
I'm going to pass it over to Mike Sena Mcdonald CFO who's going to walk you through the highlights of the financials.
Also I think gardens, which is quite extensive.
Sculpsure material.
Highlights.
As for your questions you don't get a lot of marketing in the last couple of weeks. So she can answer them.
Great.
So being a deal.
We can answer them.
Just two questions.
Right.
Thanks Scott.
So I'll start with the quarter, and then comment a little bit on the full year results. So for the quarter I think the story for Q4 is that right.
Our operations came through and delivered on our sort of forecast that we were going to have a big Q4.
I think if you may recall by the end of Q3.
We were we were close to budget, but there were some delays in production at both the coal up because of the water in the pit.
And then result at the start of the fourth quarter and then some delays in North Dakota, just with accessing the bull check underground so that led to a big forecast Q4 to catch up on some of the high grade that we weren't able to mine.
Schedule, so goodness as we delivered on it.
In terms of results that delivered our gold revenues of 592 million. So that was based on the sale of 339000 ounces, which are a bit higher than.
We budget to salt.
Truly a function of how hard the production months.
So if you look at production for the cue from our three operating mines 335, 353000 ounces 35000 ounces higher than budget and that's a that's a quarterly record.
For our operations.
And if you include our share of caliber results, we had 368000 ounces, which was almost 40000 ounces higher than budget.
Leader in and that outperformance was for call. It 244000 ounces in the quarter 37000 ounces higher than budget quarterly Rockford and like I said it.
It came mainly from processing that higher grade material are facing difficult. It that we some of which we call the process.
In Q3.
Abbott for Colo basically tend to outperform all around the processing facilities are still putting more materials through with them.
I guess the nameplate.
Mill feed grade was higher so positive on all aspects of production was that he was 45 9000 ounces is pretty much right on budget, there were slightly lower gold recoveries during the quarter.
The nature of the higher ratio of sulfate and transitional ore versus.
Versus budget, but that was offset by.
Alright unexpected feed grades so came in right on budget.
Or did you go to 60000 ounces little below budget, and that's really just a function of the.
The timing to get into we'll check underground we got into the goldstrike underground started producing ore there.
And.
There's a little later in Q4, so that's running well now, but we're slightly under budget in the queue.
How does that factor into that the operating results for the consolidated cash cost from all operations, including our share of caliber $468 per ounce very close to budget overall.
<unk> was pretty much in line with budget that had slightly higher cost, but also record production. So it came in on budget Ms body was a bit higher but was there any cash cost for the <unk> hundred $72 versus a budget of 752.
And that's why.
Production was online so it's really just a factor of inflation driven higher costs, almost not almost exclusively but mainly driven by fuel cost which were higher from his body in the period.
<unk> was $465, an ounce, which is $46 below budget.
And that's really just a function of the timing of getting into the underground there were lower underground mining cost because we were a little later and getting them to that than originally forecast.
Put that altogether, we pretty much came in in line with budget for the Q on the cash cost side.
On the all in sustaining cost side, the total all in sustaining restaurants, including our share of calibre $890 an ounce.
$130, an ounce higher than budget and that's a function of broadly in line cash costs as I described but impacted by higher royalties due to higher gold price and also the main factor influencing it was the catchup budgeted sustaining capex.
As we reported to the end of Q3 and.
Some of the Capex since it was originally scheduled for earlier in the year.
Was forecast to be caught up in Q4. It overall, we did catch up in the Q. So that's why for.
For the quarter, we got higher than than budgeted or wants to see.
Painting costs.
So when you put everything together on the cost side, well first of all on the production side.
Just to comment, including our share of calibre. We came in at 1.028 million ounces at slightly above the upper half of our slightly above the midpoint of our guidance range consolidated of 990 to 10 50000 ounces. So good news right and the Ranger in the upper half of it.
Individually for call came in 593000 ounces couldn't quite get it to that 600000, we'll have to talk to build without later that was right at the top end of its annual guidance range of 570 to 600000 ounces.
<unk> came in at 213000 ounces slightly below the revised guidance range, we had a $2 15 to 225, but remember it was at the upper end of our original guidance range of 205 to 215000 ounces.
I know what you call. It a 162000 ounces slightly below our revised guidance range of 165 to 175 and that again was just a function of the timing of getting into the wall shake underground material in the wrap up of operations there.
Overall very pleased that we came in.
Above the mid point of our guidance range for the year.
On the cash cost all in sustaining cost side as guided I think we came in for the cash cost consolidate from all apps, including Calvert <unk>.
$260 per ounce so right at the top end of our original guidance range of six 5% to 660.
So I'd stress it that was the original guidance range, we didn't re guide on the cash costs overall consolidated basis.
So we're pleased that even in a period of higher inflation and higher costs definitely higher fuel costs of all mining companies have seen we still managed to come in at the upper end of our original range.
And similar story for you all in sustaining cost side. There we came in consolidated all operations, including caliber.
$33, an ounce so pretty much within the range of 1000 tens of thousand $50 trials.
And what we saw there was cash cost at the higher end of the range.
Good solid production and then the benefit of some offset some fuel derivatives, but let us come in overall.
The all in sustaining cost range.
So as the operating results, we're pleased to be able to report that we hit our guidance basically.
On all measures. So that was good few comments on the operations overall.
First of all I'd like to just throw out there.
How are we going to be describing reporting the results from our <unk> operations.
So there'll be the coal mine. So we will report that separately that'll be for coal mine, which is everything from the Mednet and the permit which includes the Cola pit right now and Cardinal and then we're going to separately for Cola regional and that for Cola reason will be the production from all other licenses so fantastic <unk> debt.
Telco and collectively we're calling difficult line for Cola regional for Cola complex. So.
If you've got confused about the different pieces, that's the way it's going to go so I just wanted to throw that out there for you.
<unk> seen a budget, we put our budget out earlier in January and you can see that we're already in phase one of our Cola regional development, which is developing the infrastructure and the roads and some of the facilities. So that we can start trucking material.
From the first of those for Cola regional licenses in this case one Taco later in 2023, so that's ongoing.
Then you'll see in our recently announced Sabina.
Acquisition so.
What we're going to do with <unk>.
Two for Cold original phase one that will be for coal original phase II score original phase II will be a report that we think will be up by mid year, where we're doing a study to see if it makes sense, which we think it does to build a second mill somewhere in those other license is probably in the amount of quota license and that that mill with procyte process saprolite oxide.
Cereal, which we have an abundance and those other licenses.
So our goal with the goal of phase one to continue as we have now in the budget then to be able to absorb that.
The continued construction of the Goose project, what's the Sabine acquisition with the goal of that bringing that online by the first quarter of 2025 and then once we once we have this for coal a phase II study for the original study for that second mill as we decided to go decision then to schedule a lot around making sure that we get the Goose project complete.
Completed and up and running by the first quarter 'twenty five so you'll see us move into that second phase III for coal construction a bit later in the process.
Bill I think can talk a bit more about the overall scheduling and timing.
A couple of other comments gram of lodging galati.
<unk> project as we as we announced before we decided jointly with our partners H eight.
To begin a sales process when grandma watching and so that's the.
That process has been started so it's underway.
We will provide updates on that in due course.
Really just comment on couple of other things in the results. So net income for the period attributable to shareholders. The company had $157 million.
Our <unk> 15 per share.
Adjusted EPS was <unk> 11, a share based on adjusted net income of $121 million.
Full year.
Earnings attributable shareholders, the company 253 million or <unk> 24 per share EPS and adjusted EPS of <unk> 25 per share based on adjusted net income of $264 million.
Can you just comment on the cash flows for the three months. It was a big cash flow generator for us because of the weighting of that higher grade and the production that we have so cash flow from operations 270 million from Q.
<unk> 25 per share and then for the year cash flow from operations, just under $600 million $596 million or 56 per share. So we're pleased with that result.
On the on the financing side, if you look through the year of 170 million outflow for dividends, so maintaining that dividend.
<unk> per share.
Yes.
Quarter, or <unk> 16 per share annualized.
And.
What I would comment on it at this point on the dividend, it's our intention even as we absorb the capex requirements for Colo original phase one completing goose, what's the Sabine acquisition. The construction there and then for cole of Phase III.
It's our intent to keep paying dividend at the current rate if gold prices stay where we are to keep maintain our current dividend rate and work our way around those capex needs.
Looking at investing activities for the year of $389 million pretty close to budget overall.
On the operating sustaining site, we found that although there was a big catch up of sustaining capex in Q4 overall for the year, we came pretty close to budget.
We finished the year $651 million in the bank.
We're pretty much debt free we have we have some outstanding project, our equipment loans and leases and some office leases, but we're pretty much stopped free.
Overall, so we've got 600 billion Undrawn on our line of credit we've got another $200 million available on the accordion feature that's $800 million available not line.
And so if you combine that with the <unk> hundred 51 million cash we finished the year with we've got total liquidity of the balance sheet date of somewhere between one four and $1 5 billion. So it's that kind of liquidity and we got great syndicate of banks that we deal with that and we've got great partner with Caterpillar and to US that's been involved in all of our projects in the last few years and.
Lots of tools in our toolbox to be able to see our way through.
Funding the major Capex items that he mentioned for Cola regional phase one.
Sabina acquisition getting that completed and getting the Goose project built on time and scheduled by the first quarter of 'twenty five and then movement also funding for Cola original phase II. So I think we're in great shape overall.
Cash flow wise and like I said to also maintain that dividend at the current rates.
So I think those were the main items that was going to focus on our comment on as part of the overall results so with that I'll hand, it back to collect.
Obviously, we're very pleased with that.
With those results.
It popped a little bit about the <unk>.
<unk> acquisition, I think everyone's aware of it now the school system.
Currently all share offer.
Sabine It was represented at the time of signing.
So I think we.
Signing the deal.
What are your 8% premium to the subpoena share price at the time.
And we're very pleased with the market responsive received so far both sets of shareholders of each and all and then also the Sabine Shouldnt responded very well to the steel and we do think it's a win win deal which is what we've.
[noise] accomplished in many of our transactions in the past, where we can bring our strict spirit to an excellent project.
Davita represents.
Do some very high grade.
Permitted.
Project very attractive economics is very attractive.
Exploration upside.
Also ready to go with an excellent team I think that.
We continue to be very impressed with the work that was done by Sabina and their close relationship with work they've been doing with our.
Your partner in the land owner.
In the Bakken region, we look forward very much to working with both of them.
They will speed up.
And our new partners in terms of what they've already built out which is a great platform.
This project consists of construction already.
We've talked about that a lot of our conference calls before.
Some of the research just picked up on that.
We are comfortable with the schedule we're comfortable with.
Projected capital cost and this is going to be a team effort working to work with our.
Well regarded very successful construction exploration development and production teams working with us strong.
Strong team at Sabine It Bruce Ricardo Thank you Jonathan.
Project and.
In construction at this point.
The deal itself to us was a very accretive deal.
The opportunity we were trading at one one times now and they were trading at four times net asset value. So we were able to pay a significant premium yet stay within our parameters of an accretive deal.
Just talk a little bit about that because I think that.
There's been a lot of criticism for were considered to be large premiums.
Given the deals such as this.
We don't get too our terms are obsessed with premiums were about value. So this project. We assessed the value that we will be prepared to offer to shareholders and $1 1 billion Canadian of our shares.
As I said that represent a significant premium to the deal.
The fact that matters the premium was.
Was significant because of the fact of where their stock is trading and obviously very difficult, but the whole market generally for equity so great right now, but it's also particularly difficult for single asset development companies our exploration.
So we were able to offer and what we think.
Fair value digital or in terms of speed and also stay within our parameters of what is an accretive deal to us. So market response. So far suggests that some of the markets seem to understand that and as I said there is a good time.
Widespread approval for the deal.
I'll pass it over to Randall travel right now just to talk a little bit about the timing of the deal from the from that perspective, yes. Thanks, Mike.
As you know we signed the deal last week.
These are working hard towards a schedule. It currently looks like we were going to shareholders.
A shareholder meeting middle of April .
The interim court hearing would be just prior to that time.
Working backwards from there that would be the circular doing out probably around the middle of March.
And that would get us to a completion date.
Third week of April so.
Expect.
Ordinary course of RBC planning arrangement, we would be done.
By the end of April for sure.
And in the meantime, we put lots of conversation with Bruce.
And that we have we're very much on the same page each hold the speed at which is maintained at the schedule of the drawn out a lot of important things are coming up now.
<unk> rolled it all up all those initiatives. So the idea from both sides just to maintain discussion I'll do the work required as we move to close this deal to make sure that Chris and his team are continuing along with its about what they've been doing and wherever we can do to support and help.
This is also great exploration opportunity that we would see as well as this project.
Is the tremendous potential of the Blackwater district, very large property and some some excellent geology and excellence drove results, suggesting that not only is goose open down plunge.
Of this 100 nearby so called Jordan's wishes liquid reserves so far.
7000 ounces and you're pretty much open but also our geologist is really light up as I know Bruce.
Bruce's team feels the same way, we just think about the potential of this whole district, there's been some very good drill hole intercepts quite a long distance away from goose at various sites that have not have extensive drilling. So what are the things that we do bring to the party is the our approach to exploration and our ability to fund exploration. So as part of our plan here, we would be able to crank up exploration.
Starting with <unk> Suisse recap to test not only the top plus potential of Goose and George how big the second but also we set our targets. So understandably been where we've been where Bruce will report our careers Youre trying to do is try to get it right for us to build than a typical circumstance. So youre focus is obviously on everything you can.
Due to continued to advance the project and they've done a great job of that exploration is still the high high priority list to spend at that stage. So I think that's a real advantage of course of Sabine insurers as the deal closes getting our shares we will get to we will see the benefits from each of those years of this project as we work together to make it a great mine the exploration upside also.
Of course this.
This industry, leading dividend that we're paying when also.
The speed of shows to become future shareholders. So strategically this is a very good heavens, we believe.
A very good fit for our mutual goal going forward, but you heard Mike talk about our plans to expand the call of the potential errors in two stages work that's underway with trucking separately in North Dakota.
Total bill of the next stage.
We have just reported June is positive, which we expect it will be.
The second mill.
It could be somewhere in 250 $300 million capital investment for that.
But the potential there between those two phases of a beachhead a tuner customers in pulp production.
<unk>, which would take us.
<unk> thousand ounce a year level.
What we continue to expect to be.
Cost of production, so that's a great asset and then Denise.
It's far from over in terms of Opex, we should we're continuing to tune out not only separately. So we had a spectacular recent results deeper into software, particularly in the Mamba zone.
So that fits in very well strategically.
Sure.
Thanks, Mike.
There is a potential as we've seen the disclosure too.
That does not so bold here.
Starting with currently scheduled for the first quarter 2025. So if you put those two together there's half a million ounces of production annual production growth in the not too distant future here with the <unk> assets once the deal closes for mutual that's a great growth profile plus all the exploration of other things that we're doing we're very focused on now is we've always been when we.
<unk> project.
In this case, you won't see us doing any significant mergers and acquisitions for the foreseeable future.
We'd like the growth profile, obviously, there is some geographic diversification for us as well, which we were keen on it on our shoulders were as well. So this is part of the strategy that's been going on for 12 13 years now accretive acquisitions with some good exploration upside.
The buy ins.
Very good construction work to be done in this case, a conjunction with disability.
And.
It fits right in our wheelhouse with our northern experience as well of course with two projects from the Bema days.
In the North depression.
While the construction team some of the key members there are available to assist.
<unk>.
So we strategically.
It's a very good fit into our strategy going forward will be to maintain our extraordinary financial strength, which allows us to do this deal frankly continues to grow the company.
It would be pretty focused on the assets we have in house.
As I said the growth profile to us looks very exciting we're very pleased with this new opportunity.
With that I think we'll open up to questions.
Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Meanwhile, we wait while we compile the Q&A roster.
Today's first question will come from the line of Vulvitis Habib with Scotiabank. Your line is open.
Thanks, operator, congrats that live and <unk> team on ending 2022 on a strong note.
Just a couple of questions from me.
Starting off with the pick on a complex.
In the press Nathan I think.
Mike's eliminates motto.
<unk> talked about the company is expecting the construction timeline Coca Cola regional Standalone oxide mailed would be scheduled to allow for completion of the project in Q1 of 2025.
So am I thinking about this correctly that Anaconda Standalone mill construction, then would commence in early 2025 and does the Cola complex production, we still achieved 800000 ounces in 2026.
Yes, I think I'll pass it over to bill to respond to that but before I do that was in my notes, but I missed one of the things I wanted to really emphasize because I think there's been some people missed it we're not kind of try and go too significant mill at the same time with over half of our history. We are not going to start now as part of the focus that we talked about so the way the schedule looks out bill can respond.
The whole idea is to schedule. This year. So we can do we can do both and we can be very focused on.
Both phases of inspection of the call.
Those phases of construction.
So yes.
Yes, thanks, Bob So I think it's important really to understand where we're at in the permitting schedule for all of this stuff. So if you think about <unk> phase one that's been permitted that's in construction, we see that coming online really in Q3 of this year. So let's assume that that would happen. We just took the executive out there and everyone was.
Impressed with where we're at so that that ones that we think that once again now you've got the.
The <unk> River project, which is fully permitted all of their equipment is coming to site and basically there's.
A lot of the foundational work the groundwork has already been done so.
When the ice road opens up year, they'll start dragging material down the road and Theyre going to start doing rebar concrete work all the stop try and get to try and get the mill whether it in this year. So basically there are they are quite a bit ahead of where it had gone to that so you can imagine a scenario where.
We standup stand at the mills.
The buildings with all the concrete and rebar and steel.
That that then that's what happens in 'twenty three now.
Now in 24 that'll be building that will be installing the mills and everything into into the buildings for Q1 2025 commissioning.
So you can imagine at the phase II Anaconda stopped.
What we're proposing is there'll be a study completed in Q at the end of Q2, which is on schedule.
That will allow us really to kind of sequence.
What happens after in 2024, so you could see that the rebar people the concrete people theyre going to be available in 2024, So I don't say that we're going to move away from it.
It won't happen in 26, you can see a path where those guys could get into the.
Any kind of a regional mill in 2024 and 2025 at two year Bill.
And hit the schedule right in 2026. So you can see 23 phase one coming on 25, Q1 bank robber coming on 26 between sometimes to 'twenty six 'twenty seven still yet to be defined because the study is not out yet.
But the phase II Anaconda Bill coming on that's how we see it.
Yes.
Got it thanks for that clarification.
And just my second question just relates to that particular complex study that you just talked about.
Second in Q2.
Study, specifically look at the Standalone.
Gone down only or this includes piccola underground as well and then kind of general optimization of the Nikola complex.
Alright.
Maybe just.
Just talking about this morning.
Anaconda the phase two study really looks at the Anaconda mill as part of the overall complex. It doesn't include the underground stuff for sure because thats within the for Cola complex, but we are looking at additional sources of saprolite right do you bring in D&O go what happens with back although we all of that stuff, we're starting to figure out.
Where it all goes so it really is a regional look and of course, there is the zero alternative where you wouldn't do it we don't see that as real.
But that is part of the study.
Got it thanks, Thanks for that and just my last question just switching gears to spot market.
It is expected to produce about 180000 ounces this year.
How should we be looking at masbate kind of near long term should we be expecting production to remain at current levels over the next three to five years.
And maybe if you can just give us a little bit color on that exploration opportunity there to kind of improve increase the current mine life.
Yeah. So I'll do the first part and then I guess beg your pardon me. The second part so what we did is we took a look at really the capital cost of replacing the fleet and that's how we went from that we had.
Kind of a real short.
Hi output mine life and then instead, we went as you just said is three to five years at kind of that 175, $1 85, and that's what we're going to see for sure we've kind of normalize it by bringing back or reducing some of the capital cost for the fleet, which brought it down from 200000 ounces, but of course extended that period and then you'll see I think it's six or seven.
One years on the low grade stockpile after that kind of a 100000 ounces so as far as what we see as far as exploration.
Yeah.
The bulk of the exploration drilling.
Masbate is essentially beneath the existing pits.
The intent.
It's an island.
And the regional potential around Masbate itself, it's not that we don't have any targets, but they're not as prolific as we have said occurred over back back of it.
It's a fairly advanced mine.
Mine site.
We are doing in the Philippines is this year.
Setting up a 100%.
Owned.
Could it be exploration entity and we are looking at.
At.
Other opportunities within the Philippines, leveraging off our position.
And our.
Our presence in the country. So that's something that that is.
Seeing a lot more attention.
In the Philippines.
We've seen a really positive response from that you.
Can you make progress before with the previous government as shown in the gold mining the open pit mine it could be responsible to responsibly, the Philippines of our success and some others and Thats got an even more positive with the recent elections with the government that is very much keen on afford divestment at very very keen on more investment advising mining exploration binding development. So we're very pleased with that but encouraged by.
The government to do more development and exploration opportunities.
Going forward, so we're better to build another call.
Countries in Chablis one.
And so so that's going to be that's a new focus for us.
This is partly a reflection of the opportunities in the Philippines, we see extremely.
Mineralized 7000 islands, not all of those I suppose but also that combined with the government is really encouraging.
Successful for divestitures on cars to increase our vessels, which were opened to initially starting now through exploration.
Okay.
That's it for me guys and thanks for taking my questions.
Thanks Louise.
Thank you one moment our next question.
Hi, Good morning, guys. Just a couple of follow ups on <unk> can you just remind me what's required from a permitting standpoint and for the Anaconda phase III and sort of what timeline.
Is around that.
Yes, so I'll certainly answer from the operational side and if you want to talk about it from the <unk>.
Stability side, but so on the permitting side. We're currently working through a feasibility document which will be submitted.
That's what is coming out at the end of Q2.
Based on that of course.
DSI, we assume that that will get a construction permit and I just want to reiterate that desire of the government to make this project. We were just down there where we met with the minister of mines and that was really one of the first questions out of his mouth was how quickly can you guys put this in to.
The operation, we will support it and go as fast as the law allows so we don't see any issues.
With getting the permit for that and certainly the government is interested in us doing this as quickly as possible.
Yes.
I guess on the on the.
The various agreements site. So each of the licenses we've got four other licenses there each of them needs to have.
The mining license granted and then we put in place the mining convention.
And the shareholders agreement with the state. So the same as we did for Colette.
Working on that right now the first one being but taco so that we can bring some material into the plan this year.
So I think we will use that as a template theyre all going to be under the 2019 mining code we believe.
And once we get the attack when we're kind of help.
The template for the others and the one thing thats different for these license with them. When we did for Cola, we're also going to have.
<unk> agreements because we are going to have potentially five licenses in up to two mills to process material from those licenses. So we will have to have a little bit of interaction between the licenses as well, but but same as usual under the 2019 code will get our mining convention that will stabilize the taxes the tax regime and I guess.
The overall operating regime.
Those will be built and operated under.
And.
It's business as usual, we learned a lot from doing it for Cola. So I think I think we will find out a quicker process. This time around.
Yes.
May.
The government owns 20% I think at the end of the content.
10% currently with the option for 10% of those discussions point to happen as well this year as part of its feasibility.
Process, yes.
They will happen.
Jonathan on the feasibility of the mining code lays out that each party will have a valuation done and then they'll negotiate what they think.
At evaluation, making agreed between themselves, which is exactly what we did for call. It and then the state we expect the state will take the second 10%.
So if we think about 20%. So all licenses will end up being 80 20 for coal and that's what we expect to see but that happens with each feasibility is filed and the valuations are great.
Okay, Great and then maybe just one more on Sabrina.
And I know this is probably a moving target, but like can you talk about how much to be United's funded of the capex to date and sort of high level.
What sort of Capex number should we be thinking about for <unk> for the rest of this year.
I can't say how much they funded.
We haven't we haven't seen their latest numbers remember right now the ROE is opening up so that number is changing on an almost daily basis. What I will tell you is that when we did the when we did the due diligence and we look at this thing we kind of.
We looked at what they are doing and we looked at the potential too.
Move the underground for which they obviously you had looked at as well and I think they had six quarter Canadian and their study. We think the number is 800 is what we threw in ours. So we think the numbers somewhere between 750, but we in our study we put 800 Canadian.
Yes, there's a lot of it fits that bill come out with updated from that original feasibility study number so a lot of some things that.
We're doing that.
That really goes back to the feasibility study don't forget the initial capital estimate so we've done a lot of work on due diligence and working with them to come up with a number that we.
Sure.
Yes.
Happy new year.
Of that 800.
Roughly 35% kind of estimate as of the end of the year and then 65%.
So that's kind of where we sit based.
Based on what we've seen from Sabina so far.
Other than that.
The underground is about $65 million.
You said the 800 estimate that was not in the 640 estimate.
Okay.
The different periods not just inflation. There is also some optimizations and improvements at <unk> and <unk>.
Included in the $65 million out of that money.
Right.
Alright, great. Thanks, guys.
Thank you.
As a reminder, if you have a question. Please press star 111 moment, our next question.
And that will come from the line of Harman Perry with Bank of America. Your line is open.
Hi, Good morning, Thank you for taking my question.
Some of my questions have actually already been.
Been answered, but maybe just one final one from me.
And Grandma take can you could you provide us with some sense for how advanced the sales process is right now or or any sort of color you can provide on maybe the interest youre seeing.
Well I think I think just a high level summary, we've appointed an advisor and we're about to commence the actual phase one of the process. We're just we're just property and everything so that's where we're at and it's hard to say for sure, but we expect it'll be somewhere within a six month.
Timeline, I think for process to be action, but completed hopefully.
Okay fair enough.
There is nothing in our careers.
Cash for us in Q4 that included SaaS, Sheila Bair velocity there is nothing in there for about the split.
Correct.
Great and just on your stake in caliber.
Still view that as something maybe non core and something that can also be divested over the next year or two.
We have no plans for that we think they're doing a good job and the best fit.
A good transaction for all included for Nicaragua employees.
They moved from Beech go into calendar.
Successfully kept up for a while the environment social programs and things that we've done where we're happy shareholders there.
We have no reason.
So so walker sits.
Since you brought that up.
Both of our other projects people have wondered with the <unk>.
The core growth are we considering selling other assets. The answer is no. We just got back from a Green Africa tour, we had a great trip.
Typical basket could meetings of volume that went on there too.
Similarly had agreed to a buy in.
The meetings were very heartened to those jurisdictions, we just mentioned the Philippines, we're very happy with what we're doing in the Philippines.
With all jurisdictions, we're committed of course to potential significant further investment.
You can see the second bill and ongoing exploration work. So we're not interested as we'd like we really like.
About the existing mines to potentially with respect to call. It of course would be with the successful closing of this would be the deal.
So we're not looking to sell additional assets remember watching Unfortunately, we tried hard.
Fortunately.
Perhaps we could be at the point of view.
Investment opportunity for us it fits with US notes 4 million ounces.
Colombia to be it.
Okay with the Permian et cetera.
We are confident that with some of.
I was going to take that.
We have some mature stores.
Yeah.
Perfect. Thank you for that color, that's very helpful and that's it for me.
Okay. Thank you and speakers I'm showing no further questions in the queue. At this time I would now like to turn the call back over to Mr. Clive Johnson for any closing remarks.
Thanks, Operator, yes, I guess in summary at closing.
Very pleased with the year end results. So it's a real tribute once again I think to our team's coming off of the effort. The tour recently Europe being at a couple of things on that long ago. It really strictly just how it works.
Sure.
People aren't 5000 employees that we have.
A beach volleyball, very proud of our ESG track record to sort of expand from there.
<unk> on our website are responsible mining report about our commitment to that I think thats well known established but we still have a great position in the company today, we're very strong in operations.
Extraordinary strong in health and safety.
Most of our of our business low cost producer debt free now has the opportunity for dramatic growth.
Of the four years.
We like where we sit.
It's really an emphasis in working with us.
Versus team at Savannah.
A great project.
Perhaps.
Two announced deals looking towards closing so.
I think that's all we have for now thank you we'll be updating shortly.
We will talk to some people on the line that BMO Conference next week. So thank you.
For your time.
Thank you all for participating. This concludes today's program you may now disconnect.
Okay.
The conference will begin shortly to raise and lower Johan during Q&A you can dial one one.
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Yes.
Okay.
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