IAMGOLD Corporation Q1 2023 Earnings Call
Thank you for standing by this is the conference operator, welcome to the Aimco first quarter 2023, operating and financial results Conference call and webcast. As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation there'll be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal, an operator by pressing star zero.
At this time I'd like to turn the conference over to Graham Jenny <unk>, Vice President Investor Relations and corporate communications for Ion called Please go ahead Mr. Jennings.
Thank you operator, and welcome everyone to the <unk> first quarter 2023, operating and financial results Conference call.
Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Martin <unk>, Chief Financial Officer.
I'm, the senior Vice President operations and projects, Craig Macdougall Executive Vice President Exploration Jersey, Orange Koski Executive project Director will take hold and Tim Bradburn Senior Vice President General Counsel and corporate Secretary.
Before we begin we're joined today for mining those strong office, which is located on 313 territories on the traditional lands of many nations, including the Microsofts of the credit.
Sure.
Oh sheet and the ones that peoples.
And I am glad we believe respecting and upholding indigenous rights starting from relationships fostered trust transparency and mutual respect.
Please note that our remarks on this call will include forward looking statements and refer to non <unk> measures. We encourage you to refer to the cautionary statements and disclosures on non <unk> measures, including the presentation and the reconciliations of these measures in our most recent MD&A each.
GAAP financial measures.
With respect to the technical information to be discussed please refer to the information in the presentation under the heading qualified person and technical information.
The slides referenced on this call can be viewed on our website.
I'll now turn the call over to our president and CFO for Nevada.
Good ground and good morning, everyone and thank you for joining us today.
First off I want to tag and congratulate our anvil teams, including our chair and he's been on our board.
Board of directors and management of our operations.
Development teams.
Every one of the organization for positioning the company to where it is today.
Yes.
The company reported a strong first quarter responding to challenges with a 113000 ounces of attributable gold production from <unk>.
<unk> operation imaging focusing on managing costs.
I've been asked by many stakeholders since I joined the company.
What brought me to I am golf and worn device, what do I see.
This company.
In the future.
Yes.
Based on the starting at the beginning of April .
Several weeks.
<unk> getting up to speed on the company and learning about the achievements and progress their operations in Covid.
And we're committed to me down and even more so now.
Golf is under constant turning the corner toward Scotia Bank.
<unk> leading.
High margin.
Yes.
Or in fact antibody.
It's been performing well with the teams in country demonstrating great in this shifting of iterations.
Our Westwood mine is starting to make real gains training on the ground rehabilitation work.
Development in support of the future a mindset that is highlighted by new and transformative initiatives here.
And of course, all eyes are on Cogs.
The project continues to advance rapidly towards initial production early next year.
Perfect was approximately 80% complete at the end of March.
It's ramping up do you expect to EBITDA levels.
Their roadmap in front of us to achieve success.
The impact of Cologuard on this company will be patient.
With a long life low cost assets shifting the production base for Canada.
Finding and eager to Turner and the market's focus from looking back to looking at wireless.
What is to come.
We will soon be making the transition from fixing operations managing construction.
Or is there real value drivers in our business and demonstrating execution success.
Our operations optimization.
And growth potential.
Also the benefit of all stakeholders.
I will now walk us through the acquired a results and highlights.
I'm on slide four.
Starting with health and safety, while our metrics in the first quarter's Paas track.
All of our internal targets.
<unk> remains in line with our peers.
The days away restricted or transferred duty rate of 0.6 total recordable injury rates and several private paid for based on 200000 hours worked.
Ensuring that all our employees and contractors.
Right.
Always be the primary focus for Brian .
As we like to say every gold ounce producer has to be done safely and we've got some neutral that met our strict safety.
Safety protocols to ensure we actually service.
Production in Q1.
Can you produce a 113000 ounces of gold.
Sure, but on basis from continuing operations.
Well on the Paas, that's our production guidance target of 410000 to 470000 ounces this year.
As we will get into.
The production rate is all were driven by higher than expected grades.
And the continued ramp up of Westwood.
The relatively strong production results and sales volume translate into cash Cogs album $94 per ounce.
And all in sustaining costs of 15 to $25.
Well, we're ahead of our guidance estimate of 25 to 11 $75 per ounce cash cost and <unk> 17.
17 countries.
All in sustaining costs, mainly due to lower than planned stripping out is our cash our costs were higher than in the same period of last year.
<unk> and ourselves.
Industry experience the second last year.
Cost of doing business and.
And are unlikely to decrease at the same pace.
All right.
While the first quarter costs were below guidance.
I will note that we expect to see our cost increase in the second and third quarters of this year due to a higher volume of waste stripping, which our country.
I'm now turning to slide six.
Turning to Africa, the mind reported attributable gold production of 92000 ounces with Targa are higher than expected head grades due to continued positive grade reconciliation.
On a direct feed of the material from the bottom of phase four.
Mining activity and more expected by ongoing disruptions in the in country supply chain with respect and Miami just over one 6 million tonnes of ore.
6 billion centric way.
No material reminder, six 3 million tonnes.
The 52 million the same period last year.
We felt during the period last year, the mining fleet could not operate at full capacity during January and February .
As a result of disruptions in default under fuel supply, resulting from the security situation.
It should be noted.
And the situation in Peru during March and the mining fleet was operating at near full capacity.
Mill throughput in the first quarter was $2 2 million tons. After nonoperating head grade one six grams per tonne.
Broken by 31% lower than the same period.
For the same prior year period.
The decline in throughput and lower plant utilization during the first during the quarter, primarily due to the fuel.
Steel supply constraints.
<unk> continues to benefit from recent improvements to our lending practices and the gravity circuit.
Recovery from the Gregory continue to increase over historical levels and we are planning on installing additional screening the second half of the year two documents for financial Inc.
On a cost basis as our annual report gastro <unk> hundred $64 per ounce an increase from the 700.
Maybe one last.
Last year.
Due to inflationary pressures being offset by lower mining and milling costs as a result of lower activity level higher grades.
All in sustaining costs were $157 an ounce.
Coming in below estimate as we were unable to undertake stripping program work.
Looking ahead.
The camera is on track to achieve this gold production guidance range of 340000 to 380000 ounces.
Mining activities strengthening our worst normal operating level in April and as expected.
We'll be able to operate near at the normal levels throughout the remainder of this year.
Including the planned waste stripping in the second and third quarter to provide access to the required mining areas in order to meet.
1024 2025 production.
Mill throughput is expected to return to normal levels. We have Greg is expected to decrease over the course of the year at the mill the mill feed and complex lower grade material.
Turning to Westwood.
Gold production was 21000 ounces of gold.
As a result of higher <unk>.
Rates from underground as well as the contribution from <unk> underground.
Underground development in the first quarter experienced near record development rates.
<unk> hundred 94 meters of rationale development completed to secure safe access to multiple basis.
<unk> high grade Paas, producing area, which will allow.
Increased operational flexibility and support.
23 <unk>.
Goodbye.
I wasn't on the ground at Westwood last months spending in some of the Keystone to the Central zone.
And EPS upside not be impressed with what the teams are starting to bring access back into these areas.
With a strong first quarter Westway is well on track to achieve EPS guidance range of <unk>.
19000 ounces on Cogs.
And we expect to see an increasing proportion of our source.
Alright, thank you.
Progress.
Mill capable constant need to be supplemented from available surface deposits and we should note that our guidance includes the mentor a mill feeds from satellite deposits.
Terrific.
Property in the second half of the year.
Cash costs and all in sustaining cost continued to remain high at Westwood complex with very high sensitivity to <unk>.
Whereas the production volume increased.
And the rehabilitation work increase we expect to see significant cost step down.
With the goal of positioning the asset for a free cash flow starting towards the end of the year for a better and profitable 2024 and beyond.
Yeah.
Turning to coronary golf's and as mentioned, Brian Graham and the operating remarks, I am pleased to have our executive project director with US today, and I will hand off the call to <unk>.
<unk>.
One of my first initiatives here.
When we started was to cut to be at Cote, where I spent time at the site.
It is very exciting to see the progress <unk> made and CTO.
And I could see the projects firsthand.
Cologuard, one stop and writing will be come out of Canada.
Third largest gold mines and the impact that Covid will have on discovery will be substantial.
It's a long life low cost assets shifting a significant proportion of our production based in Canada.
Kony is now ramping up to peak activity.
With the spring.
Completion, and there is a clear roadmap in front of us to achieve success.
Looking at the project spending in Q1 to project the JV insured 158, $6 million and project expenditures, 70% basis, bringing the project to date expenditures to $137 billion on 70% basis.
$196 billion on 100% basis.
Kony Golar remains on schedule and the estimated attributable cost to complete the construction almost 70% of insured basis.
$25 $700 million, assuming a U S GAAP rate 32.
Accounting for the submit a more funding agreement, which mark will go into more detail I am golf as expected from 462 $535 million. During the remaining of 2023 is to bring the project to.
Baselines due to a 63% ownership in the joint venture.
With that I will turn the call over to our existing take project director Prohibition of RMR go ahead Jersey, Thank you and Hello.
As much.
Corporate is so important progress for the project achieving significant milestones in networks.
And operational.
Yes.
At the end of the quarter. The project was approximately 80% complete are being achieved 7% progress in the first quarter.
This year.
I think which was a cold winter season.
We currently have over 1700 workers on site.
Recently, another shutdown to 64 beds to some part of this whole workforce from peak.
Construction activity is commissioning operational resources, the spring and summer.
Okay.
Earthworks, we have achieved the first targets on the Tms.
$2 million.
In the March and preparation of the spring stretch out so now towards the welfare accumulation to subpar coach New York dividends later this year.
Having reached the milestone was the scheduled 12 earthworks, we have used as our children and to slowdown the artworks progress talk about.
Progress on the process plant construction.
Our focus in Q2 and Q3.
We will be completing the construction portion of southern trout stocking pre commissioning activities in Q.
Q4 will be fought consumption organization.
Preparations for new Oriental production, Ashish first Cogs in Q1 and sustainable production rich.
Let me give you a quick commentary to the pictures on your screens. Thank you.
From the top left corner.
Now to subdivide multinational accounting substation.
We are planning to start early commissioned New York Davita So neither.
I don't really cute tool preparations for you to note the collection of the Prime motive power in August .
Once this is a grinding area.
You can see the ball mill was installed NIM gear.
Progress.
We have no China progress lower fleet commissioning.
Commissioning.
Your line is essentially complete.
14 coach Southern 19, cheap hold trucks, it's a lifeline for loads or some target doses delivered.
Saw some quite advanced.
The first electric shovel.
Let's start with the level of operation depends on early January was four to six trucks operating depending on their Montana.
Target area.
During the day are planning to start with.
Our operations in Q3.
Finally, you can see in the bottom left corner to Burns I feel from the tank farm site. This is another area, which we are pushing as hard to start pre commissioning activities.
Moving to the timeline.
The high level view of the Gulf continuous chartwell.
Ethanol towards initial production.
Sure.
We are working to close alignment with our parks and our contractors to ensure the coffers safely on time.
Got it scoped.
At this time to physical problems.
Project continues to get through the process.
As mining operations.
And key EBIT. This summer will be collection of the cover substation to the power line.
Electrification of the equipment.
As well as their own shoveled.
And hydro one our alliance has been completed site under subsidy that's.
Significant progress in the quarter.
We are very much reliant on our workforce.
And a major employer in the region. So I want to just buy a harvest mode.
Human resources team, ensuring good projects as well as desktop.
As our COO.
People are not impressed with the team.
Okay.
We stopped all term Buck euro though.
Thanks.
John .
Uh huh.
Of course, we cannot talk about quality without talking about golfman.
Earlier in the quarter, we reported assay results from the 2022 drill campaign.
<unk> successfully intersected mineralization to disorder.
The current resource boundaries of the deposit.
<unk> with its management resources.
Three 4 million indicated ounces and one 7 million ounces and third continue to be in the early stage of discovery. The deposit that has only been drilled with a fraction of the meters compared to coal and to have the data and remains open along strike and at depth.
When you look at this over the life of mine there was a step down in production in the year, 2000, 32033, which could be a logical fit to bring <unk> into the mine.
While there is still a lot of work to do and are there to realize.
This year, we will be adverse.
<unk> technical studies to start reviewing our targets for potential.
Inclusion of Golfman into a future Covid life of mine.
We believe we are in the early days of good quality district.
Believe that Cologuard is not just a project.
But the startup of mining camp with substantial upside.
Within our nearly 600 square kilometers meant package.
Now I will pass the call over to our CFO to walk us through the financial bridge pardon me.
Thank you Andrew.
Good morning, everyone.
It was a busy quarter for the company.
Early in the first quarter, we closed the sale of theorize about mine with Dr. Cash proceeds received of $386 four mulligan.
We still expect to receive an additional $9 $8 million by the end of the second quarter.
The cash still held at site and related working capital adjustments.
Subsequent to the quarter end on April 26, we announced the closing side about Baidu Dot states for pretax gross proceeds of $197 6 million.
The closing of the other factors of this deal and getting the assets in Guinea at body are expected to close in the third quarter.
Assuming terming funding agreement announced at the end of last year began to take effect in the first quarter <unk>.
With Sumitomo contributing $199 million totaled $215 million of the iron gold funding obligations during the quarter.
This effectively equated to seven 5% transfer of interest in the project to Sumitomo.
Subsequent to the quarter end and as of my first <unk> Tomo is contributed by adding $61 million to bring the project interest to 39, Saipem and <unk> interest to 63%.
As a result of the increased interest in the project Sumitomo contributed $7 1 million and incremental funding for project construction.
Over the remaining construction topknot Sumitomo will occupy approximately $82 8 billion for a total of $19 million of incremental expenditures based on their increased 10% exposure to construction costs.
As a reminder, <unk> is the right <unk> purchased this 10% interest at one of savings future dates up to November 2026.
And we want to reinforce that it is ours and Jimmy toolbox injection for la.
Ultimately return to save me 30 Joy.
Venture structure in the future.
With regard to the accounting for that transaction I'm golf will continue to account for 70% of the assets and liabilities of the prototype on our balance sheet.
And the transferred interest will not be recognized as a sale.
Due to the existence of the repurchase option.
We have recognized a repurchase option liability that represents the amounts assuming chairman contributed on behalf of Bob Gault that is also equal to the amount that uncle <unk> chopper to repurchase or transferred interest.
Eventually return to 70% interest in the unincorporated joint venture and this is that as at March 31st Tranche Binney Street.
After achieving commercial production.
We will account for 63% of the revenue and cost in our income statement.
<unk> hundred 63% of the cash flows.
Turning to the Q1 financials revenues from continuing operations totaled 200.
$26 2 million from sales of <unk> hundred 19000 ounces.
<unk> average realized price of $1893 per ounce.
And then just talking question, all ascertain and I'm just trying to understand the sort of overall cost structure. This quarter you adjust to that.
So when you're when you're guiding to what you're guiding to right now like I'm trying to understand that it's going to go up over the next couple of quarters. I think is what I found the commentary.
And and then you're also saying that it will be at the higher end of what you've guided to this quarter you came in at the lower end. So I guess I just want a little bit more color about all of these moving parts with you know where.
Where we should be on Earth.
On our cost for ethane.
I'm trying to understand it would that like be prior to like the overall guidance would that be prior to adjusting out.
Gil disruption costs or is that including fuel decline.
The capital raise the capital component that was not achieved and if you would do the simple math and additional capital.
But not to forget that even though the operation NUCYNTA, which knock at the 100%. There is a significant part of the fixed costs that are still there. So it's not a direct back so as we advance and we are we.
We bring back the operations to its full capacity I think will be an adjustment here on the under our ratio of fixed to variable. Yes. There is a chance that by the end of the year, we might be more like towards the high end of the guidance, but it's out but it's not like a direct math basically so we're confident that our.
Unit cost for an extension on a per ton basis with lower.
As our highest borrowing and so far so so we remain confident but yes, there is a chance where Martin Ohio.
Are they a SEC basis.
Okay. Thank you I'll get back in the queue for any questions. Thank you very much.
Thanks.
Once again, if you have a question. Please press Star then one.
The next question is from Farooq Hanif with Raymond James. Please go ahead.
Thanks, Operator, hi, good morning.
My question really was I, just wanted to maybe contextualize and understand.
Additional sumitomo funding that you had at the beginning of the year.
Now reached $250 million and well I guess by the end of this year reached $340 million.
So I'm just trying understand kind of the cost of this funding so based on the fee that you'll be paying which is the sofa plus 4%.
Does that work out to basically somewhere in the kind of high 8% range.
The fee that you're paying on that funding and so by the end of the year or are we looking at something like $30 million a year in funding costs for that for that Sumitomo funding.
Part of the question.
Good morning Farooq.
So yes.
Funding that.
It might that $250 million that is.
The cash flows that I am gold was supposed to be that actually submitted our cash flow in the 250 billion is the amount of debt.
It reduces our interest in the project. So that is not compete so of the 63 ownership changed further as we continue on.
Because they now are nine 7% from the project they are actually contributing.
More to the project being what it was before the reason we mentioned it is this approximate incremental contribution by the name of $90 million is important to understand I'm golf's liquidity position.
On the 70% Isis.
JJ pointed you JP required funding of 870.
$75 million.
Jimmy talked about is effectively funding 340 of that from a cost perspective.
Uh huh.
Starch would be on the $340 million <unk> between <unk>, 5%.
So yes.
We got $2 6 million of the fee in Q1 on that and then we expect that to be about $13 million I should say by the end of the year.
Okay. Okay. Thanks, that's helpful and then.
The next question was really what's the frequency of the payment like will you have to pay that on a quarterly basis.
Or.
Kind of what's the.
The cadence for how you'll be paying those.
Those seats.
So during this year the costs will be included in the repurchase price. So we have to buy 340 plus.
Op repurchase option fee that accrued during 2023 and then starting in next year, we will be buying the option fee cash, but the fee for 'twenty three will I think it was odd gold exercises to repurchase option.
Okay.
Saying that 2023 fee will only get repaid when I'm gone.
Exercise the repurchase option, but 2024 through 2020 takes that'll be an annual payment.
Okay.
Correct on the 23 piece in 'twenty four it will be a quarterly payment.
On a quarterly basis and that fee will basically be accrued and paid until you exercise the right to repurchase correct.
Yes.
I would also add there so it's.
It is not seen as interest so it does not form part of what covenant calculations.
Oh it doesn't okay and so then.
In terms of.
You know your ability to repay or your desire to kind of repurchase.
We purchased that at nine 7% that you mentioned at the beginning of the call that.
It's your.
Intent to repurchase it.
I would assume that this.
As you know.
Source of financing is probably one of the higher.
Cost of your capital structure.
So when you talk about other financing alternatives.
Would you look at other financing alternatives to help finance the repurchase sooner rather than later.
So.
Wayne do we.
Negotiated this deal we wanted to ensure that we've got multiple options on timelines to repurchase it.
For us it would make the most sense to repurchase said once the project is profitable because they've going forward you're buying.
Free cash, we're 9% extra free cash flow. So we will be basing it based on that and they got is kind of what's driving the economics of this deal as well because once you meet tomo retain the additional nine 7% of project economics going forward repurchasing that makes the deal.
More cost effective for us.
Okay, Alright, well that's understood thanks very much.
The next question is from Jackie principal landscape with BMO capital markets. Please go ahead.
Thanks very much.
So Jackie.
Jackie we when you're looking at a broad speaks picked them up options and when we analyze our options. We considered that the five years of Cotai as production is a lot higher than the life of mine production profile with significant cash flows coming from that period. So when we look at options, we would want to.
We would prefer.
Something that helps us to get back to 70% interest, but that we can reverse something that is less permanent in nature, because cogs I can't get read by high levels of cash flow. So we don't necessarily want to further encumbered asset with with permanent type transactions.
Okay. Thank you.
And maybe similar question.
As you can is is there any.
At this point too.
Selling as you can in your portfolio and I recognize that would probably not be possible today until cookie is up and running but it.
Once cotai is up and running.
Thank you you will view as you can as core tier operations so at that point.
Well I can say that.
And he has said that produces this amount of ounces that kind of margin in our free cash flow.
It is absolutely a well count to be very Frank what are what we are really busy now is to really looking at all kinds of alternative to extend the life of mine. We look we have to look at the business profile in golf today.
Two mega mind.
<unk> of generating significant free cash flow for this company. We do appreciate that we have you know some some security disruptions and so far again on that in the last two months.
But the focus of the company right now is to make sure that the operations.
<unk> is back on track with 100% capacity.
Generated a free cash flow that it has and.
Sure and the opinion that the asset has a lot of capacity for extending the life of mine and one thing that Unfortunately, that's all fair and the last the last why it has been.
The parking or foreign jail. So this is also one thing we're looking at how could we get back to jail at play.
How could we look at those.
Significant the bank shortly so far.
The future is going to bring to us.
Now as we advance in time is as we continue to design your adult discomfort need to become.
Along the life company.
And high free cash are high margin and so far we'll see.
I don't have a crystal ball on everything, but I can assure you that the focus of the company right now is to make all of our portfolio working at its full capacity and potential.
Thanks, and congrats on a great quarter and congrats on your on your new appointment.
Thank you so much.
All the best to you as well.
Thank you.
The next question is from Tanya <unk> with Scotiabank. Please go ahead.
Good morning, everyone and we're now again, Matt congratulations on that.
My son, and I look forward to working with you I'm sorry, I just got on the call as I was on another call. This morning.
Maybe just.
Circling back to a couple of things one is just on <unk>.
This additional source of funding so what I heard from the previous question is that you didnt want that.
They're the asset any further protocol.
Within the.
So it's five years because it would be.
Significantly higher production coming out so can I assume from that that an additional royalty or stream on that asset is not something you're looking at.
And then I'm just trying to understand like the priorities on additional funding options would it be now selling.
Selling of assets, maybe last week.
<unk> first.
It would be equity amendment would be screams I'm, just trying to understand probably ideas via option and what specifically the options would be.
A wide range of possibilities that Youre, giving me first and foremost. Thank you for your kind words.
Martin was highlighting.
Of course, there's going to be the cornerstone asset of this company moving forward.
The two priorities. Obviously is firstly are eventually being possibility in a position to have to get back to our 70%.
Churn metrics.
And as we see it as a cornerstone assets I think the last thing we want at this stage.
Anything on top.
Okay.
So so this is not really what we see for this asset now how exactly you know we are going to be a capable over time too.
To address.
The additional financial flexibility to EBITDA margin was talking about the 70% there is a wide range.
But I think the way we're looking at this company moving forward is to make sure to not make any rules that will position us for the long term.
And Thats, what I can say at this stage I think the focus of this company is to make sure that as we move forward, we keep improving the product as we move forward and not at the early stage.
Being in a position to.
Maintain our two <unk> this asset with.
With anything that wouldn't remains in time, Martin if you want to add anything to this.
No I think that that is that's exactly the things that we look at our.
Our capital structure.
Future cash flows very closely when we make this assessment.
Okay. So I guess I get from that that streams and royalties that would be like the lowest.
The pecking order of options and equity and asset sales would be higher would that be a fair statement.
Hum.
We don't we just wanted to say exactly but but yes, if we look at.
Permanent thinks about capital structure date is delays the least permanent and then as you look at things like royalties to be caught by it back that would make it more permanent.
Okay. That's great. Thank you and then maybe even though and I apologize I was late on the call again.
Maybe if you could just you know and I know you've just been on the road for us.
And a half or so.
Maybe if you could just outline sort of yours to me key strategic focuses for I am both or let's say the next few months. The rest of 2023, just so that I can find understand as you've looked at.
The year what are your three priority.
Well the first one is.
Of course Oh.
Health and safety and I don't I really don't want anyone to think that it's just a financial exercise this.
So sustainability ESG health and safety of people.
We remain but I think your questions goes more to the business side. So the priority number one is obviously.
Completion of the successful completions of course, a very successful ramp up as we move into 2024.
If there is one objective is to achieve a very successful ramp up so.
Completing the construction in a way that it wouldn't allow together with <unk>.
Operating rhythm.
It is what we are.
Key.
On the business side of this company is the priority number one.
But equal to that when you're looking at <unk> for instance, and all that but this asset that's provided to us over the past.
Yes, there has been some security, but I think we're turning slowed in a corner I say significant progress with our brand.
Brent I'll mention on the previous questions and all of our field and Victoria has increased the level that we're happy to see for a while.
Oh, that's kind of things and this is where I like the team is focusing so if there is one thing that I would like to achieve before the end of the year is to see the asset and are returning to Hassan dragged our percent capacity generating the free cash flow that he was planning to.
See the drought if possible and backup plans for all of them to start working on extending the life of mine and I.
I must say that I remain cautiously.
Optimistic too.
So the Westwood, but what I've seen that Westwood when I visited the asset I think is a known precedent set.
Setup initiative.
And whether it's how we look at the ground control, how we lucked out for seismicity and cultural events, how we look at how we mine sequencing I bet I've seen for the first time a team that is addressing this situation in a different way, sometimes you need to stop.
And have the courage to stop and think Brandon I'll have a different view and.
And I think that remains a very very important objective for us to work towards and are returning and not returning but positioning the asset to add to the free cash flow towards the end of the year. So we can start looking at a bright future for Westwood. So dog are really at the three asset Mark can talk about the.
On the financial side, Thats, where well fund that we have no concern about our ability to complete the construction.
To wrap it up we're good at that but this is a corner at cornerstone asset I wouldn't tell our stakeholders shareholders at all that we're not going to be looking at alternatives to how we could improve our financial flexibility and eventually position. This company for a successful return to the center.
So this is al.
A lot of activities ongoing, but we have we have strong team in every piece of the puzzle.
My role is to make sure that we achieve all of them and working and supporting the team I Hope this answers your question.
Thank you both made some clarity on that thank you very much and again, congratulations and best of luck.
Okay. Thank.
Thank you.
This concludes the time allocated for questions on today's call I will now hand, the call back over to Graeme Jennings for closing remarks.
Thank you very much operator, thank you everyone for joining the call. This morning as always should you have any additional questions. Please reach out to them at all or myself.
Be safe and have a great day.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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