Half Year 2023 Endeavour Mining PLC Earnings Call
[music].
Good day, and thank you for standing by welcome to Endeavour, Mining's Q2, and half year 2023 results webcast. Please note management presentation today will be in video format here when our webcast platform.
Often management presentation that will be an audio only question and answer session.
Except for those who wish to ask a question please dial into the phone lines for questions.
Please note that you each time constraints, we will be prioritizing questions from covering analysts.
<unk> presentation is being recorded and a replay of the video on the transcript will be available on <unk> website tomorrow.
I would now like to have the cold over to <unk> P. T C F O and had to of Investor Relations Martina <unk>.
[noise] Hello, everyone and welcome to endeavors, two two and a half year of 2023 results webcast.
Before we start please note the usual disclaimer.
This format will be similar to what we did for end of your results. We are prepared a video which matches a slight order. The P. D. F results presentation, which is available on our website home page so feel free to follow along.
We hope that you find this more engaging and enjoy the video content.
Sebastian and we'll start with a recap of our key accomplishments for the first half year, then Zaria will talk about our latest is June initiatives Guy with an outline to pronounce a result before mark provides a detailed operational review.
And finally genre will update us on the exciting progress being made at our time that you'd go out with discovery. So it make sure you stay tuned until the end.
After Sebastian's closing remarks will open the fourth of questions and now I will hand, it over to Sebastian.
Thank you Martino Hello, everyone.
For the first half of the year, we've continued to deliver against six key focus areas with the goal of I'm looking Nathan value for all of our stakeholders.
I'll go through each area in detail, but as a quick summary.
On the operational problems. We are on track to me at all for your guidance for the 11th consecutive year.
In line with a strategy of actively managing a portfolio to focus on higher quality assets. We were pleased to close the sale of all non core Boo and one your minds during the period.
The quality of our portfolio. He said to further increase as are too gross projects. The suburbs Massawa by X project in Senegal, and the law figure project and could do well I'll Pogo thing well.
Both are on budget on on scheduled to come in production in Q2, and Q3 hundred 24, respectively.
Alongside this year's investment and are all getting pipeline. We are pleased to continue with the Geneva attractive shareholder returns and have declared H, 120th three dividend for $100 million.
On an annual basis, this represents $25 million more than the minimum dividend commitment for the year.
Given that the sub other I must how're expansion ended after you get Greenfield build are expected to both increase the group production and lower Alco's base. They will further enhance I kept the ability to reward our stakeholders.
Ah such a goal is to increase shareholder returns program once Allegheny gross projects are completed.
By ensuring that our efforts to unlock grows immediately benefit all our stakeholders.
On the exploration front in the first half of the year, we have accelerated our exploration efforts at our 10 day Guilla discovery, where we have drilled over 95000 meters during the last six months.
Ah such we've decided to increase the food Yo Dream program at tender to 180000 meters and remain on track to publish a resource update later this year.
I've thought of R. E. S. G strategy, we have launched several new initiatives, which aimed to protect the places where we operate and promote sustainable socio economic growth and a host communities. We've.
We've also launched the construction of our subway or a solar plant, which has this dual benefit of reducing our emissions and decreasing operational costs.
Oh.
Deeper into each of these themes starting with our asset sales.
The divestment was well along to our long term strategy of Congress, he really upgrading the quality of up out for Ya.
You will probably recognize my favorite Magic box chart.
As you can see all non core Boo and when your minds were clear outliers in the past for you with higher cost and short of mine lives.
There were also two smallest minds.
The divestment of these minds allows management to focus on the coal mines, while also increasing all geographic diversification.
Prior to the sale looking at first so represented 55% of this year's production while it now represents 44% of production from a continuing operation. This is expected to decrease to around 30% next year. Following the completion of the loft building could do well in the suburbs of that myself.
Extension in Senegal.
We were pleased to sell the assets to a trusted booking at the focus business that shares our commitment to operate the minds in the best interest of employees and local stakeholders.
We wish again to thank our boom Boo and when your employees for their commitment and professionalism and local stake holders for this report, which has contributed to endeavor's success over the past several years.
[noise] wisdom photo success.
Overall, we expect to add proceeds or more than $300 million from those outfits comprised of upfront and deferred payments. In addition to any Sars, which also allows us to retain food or upside.
These proceeds will allow us to complete our ongoing constructions with a healthy balance sheet accelerating our ability to increase shareholder returns program.
Following the divestment of wound when when you we have a data production guidance to around <unk>.
1.1 million ounces at the New Orleans sustaining cost of below $950 per ounce.
So far this year, we've produced 511000 answers at an audience sustaining cost of below $980 per ounce.
Which places is on track to meet our guidance for the year.
As we have previously guided we expect performance to be way too tall with the second half of the year as we expect stronger production at lower cost at our <unk> Salvadore Massawa in many minds.
And as you can see on the screen were pleased that this operating performance continues to be achieved safely with the sector leading safety record.
Looking at the halfway production and the audience sustaining cost trends you can see that production degrees in line with the guy that trend, while the orange sustaining costs remain below a thousand.
Mark will run you through the mind by mine I said performance later, but at a high level of production decreased at <unk> and some other in misawa due to an increased focus on stripping activity, which resulted in lower grade or being processed.
While Atlanta production degrees due to an increased focus on underground development, we simply mental or being sauce from the lower grade molar open pit.
At a group level. This was partly offset by increased production at E T, which is on track to achieve another very strong yeah.
In light of our efforts over the past six months is we are on track to achieve a stronger performance across our minds in the second half of the year.
Turning to our operating cash flow before working capstone movements, you can see a mother's decrees.
Higher gold price only partially offset the expected lower production and higher cost.
These casual profile is linked to our main plans sequencing, which has mentioned earlier is expected to yield stronger cats through India upcoming quarters.
As an aside you can also see where the gray shaded area that the cash flow from the discontinued operation continued to fall each period further demonstrating the rational behind the divestment.
One in the short term, we expect to generate stronger cash flow through our flagship assets by this time next year, we expect to see a significant uptick in cash flow as both are gross projects will have been commissioned.
To look at them in more detail, let me first elaborate on our side, rather ominous how I expansion project.
We are extremely excited about this project because of both its strategic and financial benefits.
Once this expansion is completed the southerner Massawa mine will rank as a tijuana asset capable of producing more than 400000 ounces per year, thereby increasing the quality of our portfolio and further diversifying all production base.
In addition, based on the exploration success to find oxide or we are confident to be able to further boost production in the short term.
I will let my provide details on to build within a section but at a high level. Construction work is progressing on budget with 75% of the 290 million dollar initial capital costs no commuted.
He is also tracking on the schedule, we says gold from the buyer explode expected during the second quarter of next year.
Moving now to our next gross project, which is let's see gay Greenfield development and could d'ivoire.
It will be another cornerstone asset for the company, we didn't envisage annual production of over 200000 answers well. The initial 13 year my life, either low or in sustaining cost of below $900 per ounce.
Construction activities I've ramped up fairly quickly as you can see we have now committed around 60% of initial capstone, which cost in line with expectations and we are on track for first production in Q3 next year.
Have you seen the production child. These two projects will deliver gross next year with the full your benefits in it and twenty-five.
We see production increasing to about 1.3 million ounces in 2025 with strong potential for further increase production based on their continued outperformance at E T in Hindi.
We also anticipate bringing in more oxides ads, how 'bout them, sorry about that I'm gonna shower to leave.
<unk> well beyond 400000 ounces.
And in addition, we see that figure outperforming into nameplate capacity as most of our plants do.
But equally important this gross will allow us to maintain industry, leading all in sustaining costs or below $950 per ounce.
Shifting now to our ongoing exploration efforts, which continued to generate excitement amongst the team.
So far this year, we spend over $50 million with a significant focus on a greenfield discovery Tendai guilla.
And owing to the ongoing success there we have decided to increase this year's budget from $65 million to $80 million for a continuing operations.
In the first half of the year, we drilled over 95000 meters at $10, which is already more than the 70000 meters originally planned.
With the updated budget, we are now targeting to drill 180000 meters. This year.
Then they guilla continues to show its potential to be a tier one asset and we are excited to work towards publishing in a dated resources teammate later this year.
But our exploration success isn't limited just to tender.
We've made significant progress across are producing assets.
When they for example, we've identified extensions at the Kerry pump and carry west deposits also at Hindi we have potentially made a game changing discovery as we confirmed high grade me and our relation below the vindaloo deposit which shows the potential to delineate a size.
Board High grade underground resource.
We will be following up on this in the upcoming driven programs.
That's how about that I'm gonna sour, we're expanding resources that kiss huh.
Theory, and carry <unk>, which could provide none refractory or and help lift production.
At E. T. We are looking to extend resources at the flow tool Walter back at two O and your blue legally deposits and we are testing also new targets.
Well Atlanta, we've been busy testing or shoots one on the ground and extending resources at the murder and you halfway open pits.
This success across the group leaves us well positioned to meet our five year discovery target, which has been updated to reflect the divestment of the non-core Boo and when your minds from 15 to 20 million ounces of indicated resources to 12 to 17 million ounces.
Of indicated resources over the 2021 to 2025 period.
The lower discovery cost of less than $25 per ounce.
Why do we continue to grow our business organically throughout development projects and exploration. Another important cashdollar location priority for US is to continue to return capital to our shareholders.
For each one.
We have announced a dividend of $100 million, which on an annualized basis would represent $25 million more than our minimum dividend for this year.
This rich rates a commitment to paying simpler mental shareholder returns. Despite our other capitola location priorities this year, including significant growth and exploration.
In addition to our dividend we have returned over $20 million in chat I'd ask you to date, which means that since the launch of the program in early 21, we bought back more than $250 million worth of shares representing all the 11 million chairs, which is equivalent to a P.
Proximately five per cent of our current shares outstanding.
To put this into context it means that approximately $200 per owns produced in H. One was returned to shareholders.
Or to put it in another way, 10% of our revenue, whereas distribute it to shareholders.
Corresponding to over 30% of our operating cash flow.
It also means that we returned and attractive indicative yield although over 4% for the half year, coupled with of course strong value creation by unlocking our gross potential.
Overall this means that are progressive shareholder returns program has now returned over $750 million in the form of dividends and share buyback since we declared our first dividend in 2020 and commenced payment in early 2021.
To put this in context with return approximately 13% of our market cap since the beginning of our returns program.
Another way to look at it is that we delivered significantly more than the capital required to build a new mind.
Looking ahead once we finish off her in two bills by mid next year, we didn't expect to refocus on further strengthening our balance sheet and increasing our shareholder returns before potentially launching a new build thereby ensuring that our efforts to unlock rose provides.
Mediate benefits to all our stakeholders.
Before I hand over to the team I just wanted to reflect on our LSE listing following its two year anniversary.
We are very pleased with our listing given that over 50% of all trading volume is now occurring on the UK line.
This is a great outcome given that we didn't issue equity into the UK along with our listing.
As you can see him to chop getting included into the Footsie hundred and M. S. C. R. U K. In this is has clearly helped drive appetite Forrest stock.
The what do you mean trees is also reflective of the changing our shareholder base, which has seen U K and European shareholders climbed up the register.
No I will hand over to Jaya to share some ESG initiatives with Ya.
Thank you.
In a recent resort flip cast Sebastian is mention how my knee has the potential to be one of the most tactful industries and contributing to improvements.
Living standard, particularly in West Africa, where we operate.
During this webcast Wilson take the opportunity to share some of our <unk> updates.
I am pleased to announce several new environmental initiatives that we've launched this past quarter.
In April we committed to the reforestation of Turkey actors of course value forest located near our each and mining could d'ivoire.
This is a line without vital at first it just tried teaching to protect and preserve the places where we operate.
He also serves to support new green jobs, and sustainable livelihoods, So program management monitoring and evaluation.
In June .
Launched our towards zero plastic strategy.
Hold on fire mental date with awareness campaigns and public area Clinton's up across tell us tightened communities.
The two year Trashy T also aims to walk with our suppliers to reduce the generation of plastic waste and most importantly.
Courage the development of project that would cover and add value to the remaining plastic.
More information regarding our ESG initiatives and performance is detailed and sustainability report, which was launched earlier this quarter.
As part of Hollywood drive to continuously improve our disclosure we have continued to augment Hal reporting we done is G data center and dedicated factsheet outlining all we manage alky impact.
We continue to make significant progress with the implementation of how old is your strategy.
And I look forward to sharing more examples in the quarters to come.
Thank you.
Thank you Gerry and Hello to everyone joining us today.
Sebastian covered the high level half your picture So I'll walk you through the quarterly variations.
In summary, our production from continuing operations was up 10% this quarter over the first quarter.
All in sustaining cost was up 5%.
The stronger production, along with a 4% higher realized gold price drove significantly higher net earnings and EBITDA, while our operating cash flow was lover due to the season the higher tax payments.
I will not take you through the details starting with our oil and sustaining cost Ah.
A quarterly production from continuing operations increased by 25000 ounces to 268000 ounces as production increased at both one day and seven dollar Massawa driven by improvements in protest grades in line with the mind sequence and higher recoveries.
All in sustaining cost increased to $1000 per ounce.
This was due to higher cost of 80 as a result of increased reliance on self generated power and its manner due to an increased focus on underground development.
I went to the stronghold price during the quarter, we maintained a robust all in sustaining margin of $947 per ounce.
Turning now to our operating cashflow, which decreased by 23% to $159 million in queue to as a result of the higher taxes paid during the quarter.
Typically we make higher tax payments in both Q2 and in Q3 and.
Q too we pay our full year tax payments for the prior year and provisional payments for the upcoming yet and in Q3, we typically upstream cash from our operating entities and pay withholding tax on this cash.
As an aside you will see in the Gray and the chart the cash flow from discontinued operations, which were not generating significant cash flow for the group.
This underlines an advantage the sale of the non-core athletes will have allowing management to refocus our efforts on the cash generative core acids.
Yeah, you can see a bridge of our culture of a quota variances in operating cash flow moving from left to right. You'll note that we benefited from a 61 dollar higher realized the gold price as well as an increase of 6000 ounces of gold sales.
Our operating expenses and other items increased as a result of higher volume related mining costs that one day and seven dollar massawa.
And increased processing costs across the group given higher tongues move.
As well as increased corporate and exploration costs.
As mentioned the income taxes paid increased by $64 million in Q2 compared to Q1 due to increased payments across the port failure related to the timing of final tax payments in relation to the 22 tax here <unk>.
And provisional payments for 2023.
There was also a lawyer working capital outflow as the cash outflow in inventories driven by stockpiled bills was partially offset by an info prepaid expenses at seven dollar mazola.
Overall this method, we generated $159 million in operating cash during the quarter equivalent to 64 cents per share.
Moving onto our Cnntech position you can see that we continue to maintain a healthy financial position with a net debt to EBITDA ratio of North 0.15 times.
As depicted in the waterfall chalk on net debt to $50 million as at the end of Q1 was reduced by $159 million in operating cash flow generated from all operations for the quarter.
And then offset by investing activities of $214 million.
This included $22 million, a sustaining capital $61 million of Nonsustaining capital and $104 million gross capital, which is mainly related to the seven dollar Massawa Biopics expansion and then the fee get Greenfield project.
We also encourage $26 million and investing activities at I've discontinued acids financing activities with a net outflow of $73 million, mainly comprised of a settlement of 29 million with cool writes with tourists linked to the to rank a transaction.
In addition, we incurred $19 million of interest payments on our outstanding debt facilities and completed around $9 million a share buybacks.
There was also a 7 million dollar gain on the Remeasurement of cash on hand, which is held in non U S dollar denominated currencies.
Overall this means that we ended the quarter with a neck death of $171 million.
As you can see from the evolution of our historic net debt given the quick payback periods of our assets are business has the potential to absorb that during construction phases and rapidly deleverage itself.
Aren't leverage ratio stands at no 0.15 times net debt to adjusted EBITDA, which is well below our target of no 0.5 times.
As such the group is currently in a robust financial position with significant liquidity headroom to support our ongoing phase of growth, while allowing us to continue to pay attractive shareholder returns.
If we look at our debt structure in order to manage short term offshore cashflows during the quarter, we increase the size of our our C. S to $645 million, while maintaining the same favorable terms and we drew down for the $155 million on the facility.
In addition in July we have taken advantage of favourable financing terms in West Africa to arrange a $167 million term loan with a syndicate of West African banks locking and competitive pricing for the five year instrument.
This term loan is the cheapest source of financing because it mitigates any requirements to upstream and downstream cash, which naturally encourage withholding taxes.
We believe that our diversified long term debt structure has us well positioned to continue to deliver on near term growth with significant financial flexibility.
Switching now to analyzing our profitability.
Our adjusted EBITDA increased by 13 million to $253 million and we maintained an attractive EBITDA margin of close to 50%.
As you can see here the EBITDA margin has been fairly stable, while the operating cash flow showed more variability due to tax payments.
Moving lost Leto on net earnings where I'll just focus on the number of key line items, we reported an increase in earnings from continuing operations, partially offset by an increase in exploration costs in line with higher exploration activity at our temporary Guilla Greenfield property in Cote d'ivoire.
We benefited from gains on financial instruments from the unrealized gains on gold colors, and gold foods as the gold price increase in queue to which compared to a loss in Q1, the combined effect of which was significantly higher net and comprehensive earnings as compared to last quarter.
Adding back the impairment of $15 million relates to exploration permits.
Reversing the 30 million dollar gain on financial instruments, and a number of other smaller adjustments results in adjusted net earnings of $79 million for the quarter.
Now I'd like to hand over to Mark who will take you through the details of our operations.
Thank you Goodbye and Hello to everyone on the call.
Before I discuss here operating results I would like to touch on a strong safety performance.
The last 12 months and lost time injury frequency right was 0.09, well below the industry average of 1.14, which is very encouraging considering we're currently building two new growth projects and increasing staffing levels if recorder.
Spot. This we had won at a continuing operations during the period. So we still have some work to do is all these types of incidents are preventable.
We are focused on improving training frontline supervision and reviewing operating procedures to ensure that we eliminate all reportable incidents.
Moving to operations I am pleased that the group remains on track to achieve full year production and cost gardens with a strong performance anticipated for the second half of the year.
In fact, three out of the past four years have food production weighted towards the second half.
Oh, we'll talk to each one and a bit more detail starting with seven dollar Massawa, however, given the time constraints.
Will focus only on the continuing assets.
At <unk>, we are continuing to see the benefits of.
Our ability to quickly bring new discoveries an existing resources into production.
As an example, we were able to convince morning at the neck of theory East deposit in light quoted to following a six months intense drilling program.
As a reminder, this pit as close to the processing plant in excess was possible once a village resettlement project was successfully completed the.
The Nyack, if you repeat will provide supplemental higher grade known refractory fade to the plant and replace answers from the Sophia North Pitt.
Production increased as a result of a higher average cried being processed due to the increased contributions from the massawa in band Mariah pits hire tons mailed and higher recovery right compared to the previous corner.
All in sustaining costs also improved during the quota.
Fitting from highest cold tiles, and Lois sustaining capital as we completed less waste capitalization during the period.
In the second half of 2023, we expect to introduce additional higher grade oxide fade from them accountant pit, which is just north of the stuffy nose pit, which should further improve average grades.
A type of a dollar massawa, we are fortunate to have so many resources in close proximity to the plant, which provides options to manage all types and glide through effective sequencing and blending.
Moving onto the expansion project I'm really happy to see how the Bios claim construction is going on.
Along with all of the other infrastructure the.
The structural mechanical imparting packages are all starting to take shape and we remain on budget and importantly schedule for a quote or 220 24 startup.
Sebastian started so far approximately $217 million or 75% of the initial 290 million dollar growth capital has now been committed with pricing in line with expectations.
As shown in the photos, the Bios reactors and concentrate feed installation now complete so youll foundations have been installed we've tank construction underway.
And the Neutralisation tanks I'm nearing completion.
We have made significant progress since we launched construction in the first half of 2022, the critical path of the power plant construction and processing plant construction activities associated with the buyouts reactors.
Last week, we received the first tunnel bacteria onside, which will serve as the feedstock to progressively drugs and ramp up the bacteria population over the coming months using a separate set of small tanks to ensure that we have large enough volumes of bacteria to start production.
In quota to next year.
The I tunes megawatt power plant expansion is advancing on schedule and we now have all three generate is installed we expect them to be fully commissioned by.
The contractor or the end of the year.
We look forward to keeping you updated each quota it's a project approaches completion and quota to next year.
And while we're talking about seven dollar we are very excited to launch the construction of a 37 megawatts hold the facility, we will install a solo playing around three kilometers away from the processing plant.
To ensure we can regulate availability, we will be adding a 16 megawatt battery system as well.
The solar plant and battery system is expected to allow <unk>.
To function on only one generator on please skydive, reducing fuel consumption by around 13 million liters of year.
That is equivalent to 24% reduction in S. C O two emissions.
In total the initial capex for the project will be $55 million of which 10 million will be incurred in 2023 with the reminder, in 2024, a hit of startup in Q1 2025 <unk>.
Importantly, how generated from the solar plan will cost around 1.4 cents per kilowatt hour compared to 18 cents for a self generated power.
This is a perfect example of an optimization initiative that will not only reduce costs, but also reduce emissions and hope to put us firmly on track towards 2030 emissions targets.
Now moving on trail and I'm on it became a facility.
Production increase during the second quarter in-law, Mr. Mann sequence as we finish the current face of Prestripping at the Kerry pumped pit disallowed us to restart all morning, and introduce higher grade oxide Oh into the mill fade.
As a result tons of all mind and mood and average price described increased in the corner.
Olynthus dining cause decreased as a direct result of the higher volumes of gold salt during the quota. This was partially offset by slightly higher mining and processing unit costs.
As we head into the second half of the year or is expected to be sourced from the Kerry pump and Bingley mine pits with supplemental faith force from the Kerry Wispy production.
Production is therefore expected to be stronger in the second half.
Of the year is there should be less stripping activity and we expect to have access to high volumes of higher grade all across the carry pump and been duly mine pits I have just returned from a short trip to ichi, which had a very strong stopped the with a record three food there was lots of activity on thought to anticipate the width.
And it is pleasing to see how far the mine has come with a perforations over the past four years, so that they can minimize disruption from Ryan events.
The strong performance in the first half of the year was due to a strong meal throughput coupled with high grade all from the itchy water in La Plata pit along with high recovery right.
Due to the strong first half performance, particularly in terms of Shreveport, which has been achieving well above nameplate capacity, we've taken the decision to accelerate the construction of the second tier safe to ensure that we have sufficient timing storage capacity for the near future last year, we identified the opportunity.
To add a race answer to improve recoveries optimized cost, while lowering sarnath consumption potentially recovering additional golden silver and reducing what sign odd in the tilings.
The raison project is approaching completion and should be fully commissioned in the second half of the year.
Looking at further opportunities to watch mostly operation, we've decided to launch the primary crusher optimization project. The mineral size is an additional crusher that will run in parallel with the existing Joe Crusher and is expected to allow us to remove a number of high cost my ball screens and crushes and re handle.
For the soft oxide, all which is too sticky to go through the crusher this'll.
This will enable Shreveport to me maintained above 6 million tons per annum, regardless of the Oakland.
At <unk>, we are focused on advancing the underground development at why not so that we have sufficient mill fade to maintain production.
Once the iPhone fade from the myopia is depleted in half one of next year.
As a result of the underground development activity production that men have decreased during the second quarter.
That is Lola average price will process from wine underground as well as see you underground mangle.
The iPhone is a low grade or tools to provide supplemental fade to the meal. So the main focus will always be the underground mines.
All in sustaining cost increase due to the lower volumes of gold told the increased focus on underground development and high volumes of iPhone Pete tons of mind.
We expect to see a higher rate of production and the second half of the his development work undertaken will enable increased access to stripes. It why not.
Start production at sea is expected to advance into higher grades in the second half of the year.
Moving onto a second development project, the Lafayette Greenfield project in Cote d'ivoire, where were you making significant progress.
Is really exciting to see the project advancing now that more than 50 per cent of the initial 448 million Catholics has been committed and the project is tracking on budget and on schedule for start up in Q3 next year.
We are now using the history, which has been approved for flight, which will really help the logistics is activity levels continue to increase.
As a reminder, that guy has an envisaged annual production of over 200000 answers a year I've reached initial searching near my life at all and sustaining cost awful like $900 per ounce the.
The build was only launched in queue for last year. Following completion of a definitive feasibility study that confirm the figure has potential to be a cornerstone asset for endeavour.
You can see the good progress we have made on civil and structural works. That's a primary crusher high pressure growing enroll bonemeal reclaim channel and CIO tanks, all being billed not.
Not shown in the $5 is the water storage damn where construction is complete loss water harvesting him and she is safe construction of both progressing well the.
The morning contractor has commenced mobilizing to saw it and he's building the necessary infrastructure.
Construction of the 225 Kilovolt Powell on continues to progress well.
When you're working around the wet season and targeting to complete tell foundations beforehand. So that we can advance on tower erection during the second half the key milestones for the remainder of the year of the process plant <unk> and T. As if construction as well as the start of morning in court for.
We are very pleased with the progress made it looks gay and it is always very impressive to see a project advance from nearly nothing less than 12 months ago to a project that we expect to be producing from enlist in 12 months time.
Thank you and.
Now hand over to January to provide a detailed update on the exploration program at 10 to Aquila.
Thanks, Mark and Hello, everyone.
Given the significant drill program under wire that Tanner, Equilar discovery, and coda devoir or wanted to provide a more detailed update.
We are very excited by the positive drilling results, we've been getting which is why we've already exceeded our original plan for 2023 with more than 95000 meters drilled so far this year at the project of.
Of which 82000 have been drilled it theosophic deposit.
We've been expanding the program using 10 rigs and we focus on converting mineral resources from inside two indicated status.
At the same time, we had delineating new resource to increase the overall size of the resource base.
Our exploration team benefits from being part of a larger group.
With the ability to reallocate capital to projects that meet our investment criteria.
That means that thankfully, we've been able to increase our initial exploration guidance for the full year from $65 million to $18 million with all the increase being allocated towards tend to recoil.
As a result, we've been able to increase our target of drilling 70000, neatest this year to a staggering 180000 meters.
Her maiden resource of 3 million ounces of two grams per ton was defined based on around 60000 liters of drilling focus within a small portion of the identified mineralized trained.
Since the founding dies resources late last year with extended demineralized strike linked by a a 900 meters as you can see on the map.
That's 300 meters to the northwest and 600 meters to the southeast.
As a result, we expect to include additional resources and a resource update in the second half of this year.
At the assessor deposit within the dotted line on the map. We initially identified as significant fault structure that was separating dobrimir volcanic rocks.
To the northeast.
From the top client <unk> to the southwest.
The structure proved to be a significant conduit to mineralization, which is hosted adjacent to the structure within the top client sediments on the southwest side as you can see on the map.
We like Theosophic deposit a lot.
Demineralization as thick it's.
It's continuous particularly on the northeast side of the deposit snuggled up against the fault structure.
It starts its surface and extends down till I with 300 neatest steps.
Since discovering us our food we have identified several similar structural and geologic targets on the tender iguala permits and we have around 10 targets within a six kilometer radius of us sources that have the potential to be satellite deposits.
During the first half of 20 twenty-three almost 14000 meters out of the 20000 meters plan for the full year drilling program was completed across these targets.
We continue to be encouraged by the results of the program, namely at the pilot trained two and three targets, which like hateful kilometers southwest of the Asahi deposit and at the kanji gone target, which like heights four kilometers southeast of the assassin deposited at.
At the pile of targets reconnaissance drilling is confirmed similar structures to have suffered with a false structure separating the berryman volcanics from the top client sediments.
Mineralization has already been identified I have a 600 meters along in northwest strike and it remains open along strike and a desk.
At the conjugal target the structural contact between the top client base and rocks and debris meehan basement had been well defined tree geophysics.
This is confirmed that the prospective structure hosting a saucy continues I would 20 kilometers extending four kilometers to the south east to the country gone target and five kilometers northwest of a saucy towards Bangor target.
During the second half of 2000 twenty-three the exploration program will continue to delineate both the parlor and conjugate targets, while reconnaissance Sterling will begin at the bank or target.
We are very excited but what we're seeing a tangible guilla, we see this as being the potential for our next cornerstone mine.
I remain a viable for questions on tender Aquila and our exploration projects at the end of the presentation.
Now hand back to Sebastian.
Thank you Journal Jaya Guy and Mark.
As you can see we've continued to deliver against a key objectives. During the first half of the year and remain on track to meet a full year guidance.
We know until the second half of 2023 with a higher quality bought for Ya and alcohol guessing well towards unlocking our Guinea gross projects next year.
We sat by the way I'm Gonna start while I figure completed we will further upgrade our portfolio by increasing production, while lowering cost base.
This would of course position asked to generate strong cash flow, which will in turn allow us to continue to reward all stakeholders.
None of the progress we've made would it be possible without our team and I would definitely like to thank them for their continued hard work and dedication.
Thank you for joining us when a hand over to the operator for Q&A.
[music].
Thank you.
<unk>, we will now begin the question and answer session.
In mind that if you wish to ask a question you will need to press star one one on your telephone and wait for your name to be announced we will be prioritizing questions from covering analysts at this time.
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Once again, please press star one one if you wish to ask a question. Please stand by while we compiled the queue and achy.
Thank you and I'll take our first question.
The first question is from the line that's all thanks happy it from scratch Bank. Please give a heche.
[noise], Hi, Sebastian and <unk>, just a couple of questions for me.
My first question is around sustaining capital for 2023, So now you've got multiple projects essentially that looks like it did they hit all at the same time and 2023.
Do you see some skinny capital deducing into the second half and it took 2024 or should we expect similar levels going to Detroit 24.
Things of ice, yes, I agree I mean, the overall, we are expecting system and kept stored them into a decrease in the second half. This is the first half.
And then it's really be nonsustaining keeps doing it and gross capex, which are picking up.
Sure and and so so in terms of the sustaining capital described side than you know going to be 2024 do you see any more additional you know.
Obviously, hi, Capex projects coming up or is that is that tapering off.
No I mean in in 24, I mean, he is gonna is gonna stout in reducing.
Bear in mind, the 20th three was a bit of and particularly in each one hi, you're also in terms of tripping at the number of mine sites.
Mhm.
When he for.
In terms of other Capex and I'm looking at excluding them into gross Capex. We've got obviously this year.
The research project, which is you know it's been a big one we've already given I mean, they're very strong results at E. T started also the mineral sizes.
In order to have that ready I mean 24. So we'll have you know a best of it in the Capex and 24.
And that's that's about it.
Okay. Thanks for the color in that collection and then just moving on 22323 is probably need to read rainy season.
How should we be looking at Q3 compared to you too.
<unk> operating team prepared for the rainy season.
Yeah. So I think we know the team has has prevailed.
This time I mean for you know the the rainy season.
Usually I mean <unk>.
Q2 interest free which are the lines, where we should have you know slightly higher this time Q3 versus queue to and then there's significant growth in in queue for as we access you know how your grades and and get all the benefits of the H one stripping.
Got it and and the <unk> viewpoint, sorry over his overall I mean, the keyboard is you know feeling feeling comfortable that you know we are on track with without guidance. We flagged early on in the beginning of the year that we were in a way to the mean towards age too.
Oh I know.
Okay. Thanks, Thanks for that Sebastian then my next question is would you know I mean, you know obviously, you've you've increased your exploration program agenda.
Would you be able to incorporate all the blood results that you're looking to complete a tender for the resource update and then maybe a follow up to that would be in terms of the resource update would would that be soaks up they'd be looked you know to be brought it into a study and when should we expect that study.
So just to let you know I'm into you know to continue on that but the key point is you know initially we had close to 70 70000 metre drilling program for the end of this year. We did in 95 I mean in the first half and now looking you're doing 180000 meters, you know which is huge commitment.
I guess it probably translates you know the high confidence in excitement that we have around the you know the time that you would've discovery.
We are expecting to provide an update in around November included in queue for this year, but you know maybe Joe now you want to comment on timing.
Yeah. Thank Sebastian.
Timing wise late.
Quoted for 20 twenty-three will do a resource update we are doing internal ones as we go along.
You'll be able to capture all of yesterday's at the moment, even with the 10 rigs on site at any given week, we've got anywhere from eight to 12000 samples seeking at the laboratory lightning very good and dedicated to us to turn around as being very good and we just modeling and updating the information that comes through you'll be two or three months.
So we can keep track about interpretations that resource update will form the basis than all of our studies wig for early next year.
And that's annoying system for their activities.
Okay. Thanks for that you know and then just the shifting gears a bit over here. This was Sebastian you know a visit to the situation in Nigeria.
Now endeavour doesn't have any real exposure to share, but Sebastian can you provide any color or <unk> it back to the current portfolio.
The.
<unk>.
It is.
Hum Hum Hum Hum Hum Hum.
Uhm.
Oh, and what is interesting is to monitor.
US organization is going to react to you. So that they gave an ultimatum until Sunday to reinstate the president and it took a very very tough and strong sense. So I think it's important always said that you know I see more stability in this region, saying some into the power I mean no vehicle.
Of us so I think it will be a good test I mean for them over the next day or the next few weeks so to be monitored.
Okay. Thanks that Sebastian I add some more questions, but I'll get back to you too.
Thanks for taking my questions.
Thank you very much of those.
Thank you.
Well now take the next question.
Okay standby.
It's just from the line of John came out from National Bank Financial. Please go ahead.
Oh, Thank you operator, and good morning, Sebastian and team, maybe I'll just to start off carrying on that.
Along the lines of the previous callers questions on Tandy iguana, so to Juneau.
More specifically there was an original target about four to 5 million ounces at the year end update or are you still maintaining that or do you think you need a higher end of that range now make perhaps about that range.
[laughter] things done I remember that we when we made I mean, the first the first announcement on then they will last year [noise]. The next question. We had his when when did you said going into production. So I think we just need to do the work you know step by step you know, we still have I mean this.
Target of you know four to 5 million homes, you know by the end of the year, which will be you know ready a huge milestone after in our lives in two years of of drilling.
I think the the the increased efforts were putting their is just you know showing how again excited we are in the help reminding we see this and you know we want to continue to build up our Oregon. The gross pipeline and then what is the scale you know cure stuffing.
Stuffing I mean to be you know at the top of the top of the line for for the next the next key projects.
Okay Fair enough yeah, Yeah, I remember before that made resource last year, you had a certain target in the actual made resources much higher so but fair enough. We'll we'll just wait to see what logicians congratulations on that progressing nicely.
Next question [noise].
Can you comment on expectations for taxes paid in Q3 and Q4.
Sure, maybe Alaska Guy just Wanna.
Sure I.
I think probably just take a quick step back on the overall tax profiling.
May be useful for us to understand that Q2 and Q3 are generally.
Higher tax paying quarters for us.
Dominantly down to.
Just the the overall timing of both our final and Provisionals, which will be in Q2 and Q3.
The other the other big impact that you will clearly seen in the numbers is the withholding tax so that came through our expense line in queue too as we had finalized the dividends that we're going to be looking to upstream cash on.
And that will effectively become payable in Q3, so we will still see some cash out from Q3, but I think on an annualized basis. One can expect Q2, and Q3 to be slightly higher than Q1 and Q4.
Okay. Thanks for that.
Final question over to manner.
Can you just add a little bit more color on the.
Working with the contractor and underground development, that's going on there and the expectations for rebound into the back half of the year.
Sure Alaska, Mark to answer that and give a bit of color I think what's important with you know <unk> going in a second time underground and for US as Endeavour, you know setting up I mean, one of property is the fact that you know we see you know manner as a key case study I mean for building up our internal capable.
<unk> four underground capacities as we see <unk> on the ground potential in a lot of our existing portfolio, whether it's when the E T or settled that I'm gonna shower.
And this is why we put in you know a lot of efforts and taking with you know very seriously.
The rights steps I mean to build up capacities and ramp up at that I'd Wanna, Mark I mean, maybe you Wanna give some colors yeah. So.
We brought in a new contractor Who's also new to West Africa, and nothing the ramp up was underestimated probably by us and by the interest in terms of getting the.
The equipment is supply chain personal and so forth and so we didn't get the anticipated production from from the first half of the year, we are seeing improvement.
Mmm.
Also too and it's just progressively improving so that will be.
Do you expect to see if.
I've got a bit of performance in the second half the.
Okay, Great and and I guess also related to manage as Jen strategically are you comfortable with your production waiting.
<unk> at this point I mean, obviously, it's been reduced with some of the recent <unk> just a level that you're comfortable with my chest manner.
<unk> N O J.
Yes, and there are different reasons I mean for that one is once we have some other than myself by by X project, unless you gave up and running overall I mean, we'll see looking at festival coming down to <unk> in terms of production contribution. So we'll have you know an evenly.
Split bottle, you'll between the three countries and he got it could you and book you know.
Other thing, which is obviously very interesting and you know the strategic move we did by taking a bingo and when you were becoming non core is to refocus all our efforts into the Hyundai belt. So as you know <unk> and Lindy very close to each other so it allows I mean to refocus all the management, but also.
Security efforts into one single area, which is obviously one of the safest best I mean of the country. So much easier I would say I mean to manage the current environment.
Okay.
Thank you for that that's all for me.
Thank you <unk>.
Thank you.
I'll take our next question.
Please stand by.
That's just in the line of carrying mccorvey from kind of coaching if I say, please gabo heche.
Yeah, good morning, or good afternoon, I'm, just wondering if you could give some color on the cost outlook for the second half I know production was up 10 per cent quarter of a quarter of a cost also five per cent. So can.
And we still be aiming for the mid point of guidance or or maybe at the higher end. If you can just give some color on the <unk>.
Sure I think the short answer carry is given that the <unk>.
We're targeting to be within guidance overall on the cost the increase in production will allow I mean, the audience sustaining cost I mean to fall into the guidance and therefore ensure that you know we are overall for the year within within guidance.
Okay, and then maybe just an a T. I mean, it's done 1.8 million tons two quarters in a row, which is quite a bit higher than the historical run right and certainly well above nameplates is that a sustainable level that we should be looking at or you know are there other factors driving to my mind.
Yeah, we we very happy with the performance in D C and a lot of it is also driven by the blame where you've got more Oxford material insightful.
The wet seasons always more challenging so we will see the the numbers drop a little bit in the in the web Susan.
And.
We're all I think that you know we're very pleased to see you know E. T has been performing for the last two years and you know demonstrates her ability to better and better Master would say the blend in this Rupert. This is why we feel that by bringing them in.
There are sizes, you know going forward. This would allow is also I mean to maintain a pretty strong throughput irrespective of the different plans and I was seeing if we can have a target of $6 million on you know on a regular basis, you know for <unk> that would be you know a huge huge achievements.
Okay. Thank you.
Thank you.
But not take our next question.
Please stand by.
It's just from the lineup any <unk> C. I P. C Y pockets. Please go ahead.
Good morning, everyone. Thanks for taking my question most of them have been answered, but I just wanted to touch upon inflationary pressures and what you're seeing could you.
Perhaps go through you know some of the major drivers of inflation in unit caution and see if you're <unk> and give us some color on what you're seeing there if you're seeing any relief in any of these areas.
Sure things I need to.
I think the key point is probably on the fuels either you know that's that's one of the major driver of cost increase over the last.
12, 18 months I mean through the you know inflation high inflation and if you recall there is a bit of lag.
On our side in West Africa around those parameters. So we would you know we would expect as we flag in the beginning of the year some reduction in cost on the suicide in the different countries, where we operate. So that's you know something that you know, we 14 and that's probably one of the key the key dry.
<unk> I mean, the rest I mean is you know road in line and we haven't seen further I mean inflation, which I think is a is a good thing.
And then in terms of like what what can you quantify that in terms of how many months like is that a six nine month lag in terms of I guess, just the amount of inventory if you would have.
Yeah, We we said him and it was you know around six to nine months Lug versus you know North America, and Australia, So which means you know starting in beginning of Q3 and up to beginning of Q for in order to see some drops we started to see some in Senegal, we waiting to see that now and good.
And in in <unk>.
Okay. That's it for my question. Thank you.
[noise], Thank you anytime.
Thank you well now take our next question.
Please stand by.
This is from the line of <unk> from T. M. I. Please go ahead.
Thank you all for Aiden good afternoon Sebastian at Gmail. My first question is on the <unk>.
Underground discovery had been daily.
I mean I know, it's early days, but can you comment on what does it mean, assuming it's and so does you expect is that something that could be brought to a head in your mind plan Netflix add to your production profile, let Sunday. So that's my first question second needs on the solar plans at <unk>.
Is it possible to quantify the cost impact would be given.
You're looking at a biopsy and then power consumption, they're super solid upon what impact Miller tap on your on.
Possibly pass.
And overall <unk>. These two questions I do have a follow up question okay.
Yep, Thanks, rash, maybe mark I'm in on the on the ground potential for you want to come in it's very early days exploration team is due to a handful of holes into the underground.
It's quite a large bulk deposits. So we need to do a favorite more work two at the time he'll have <unk> is it'll be somewhere between the narrow design and evoke method.
But it it looks very interesting and I think it will certainly be.
What a nurse Uhm project to advance one day and said.
Sitting underneath the Bentley mind Pete.
And right next to the processing plant.
Maybe that's something that will be pushing as hard as we can with depression thing.
And interestingly as I was saying earlier you know as we are building up capacities and danone capacity that manner, which is very close to Hindi you know it will be easy. If you know we are able to move at some point into.
Underground it Hindi to transfer some of those expertise and competence is from <unk>.
On the second question, which is the the solar powered you know for <unk> I mean, we're expecting the solid plant I mean to produce at about 1.41 0.5 cents per kilometre, which means you know compared to it cheerful generated power, which is around 18 cents per kilowatt.
So that you know significant savings <unk> you know this could represent up to about 22% to 25% of course.
Cost reduction for February 11th hour per year. So obviously very very interesting you know for having this solar I mean to reduce power cost.
And and Sebastian on on that so is there is there potential <unk> further <unk>.
To the <unk> Pasadena future or do you think this is the optimum size.
And we've done a number of studies to to look at expansion and obviously the first step will be to get this in and then to determine.
Because.
Any any sort of expansion, you're really looking at that sort of load shifting as well so you.
Having to add batteries and someone so it's not it's not straightforward.
In terms of a natural progression, but we'll certainly do the work to speak with a is something you'll see the.
The interesting thing on the electricity supply I mean for a southerner Misawa is that one option or something to table is to connect them into the grid. There is a plan in country to bring up the electricity in the area of <unk>. So that could be you know down the road also an option.
Particular with the guys discoveries this would bring down I mean, the electricity cost on the grid in a down for the country. The other thing that we're looking at is potentially wind wind power given the December misawa. He's in a corridor other attractive in a wind for windmills. So a lot of.
Options there I mean to continue to try to improve down the road, our our cost base for somebody that in the summer.
Thanks for that Sebastian and one last question if I may ask you if it wasn't difficult question with respect to your portfolio, what potentially sequel, adding assets.
See the news on chassis asked.
Is that something you're still interested in why are you willing to.
Also look at jointly.
Making a bit with some money or any other assets that you <unk> for us at some 0.1, you are adding salmonella Massawa, yeah, let's see again also 10 days got up and down the line but.
And if you had to add I followed the acid would you would you take the call.
Sure well you know I think that what's important is first of all we've got a very strong getting gross pipeline and despite the fact that we sold him into assets.
You know next year on the food you basis wisdom that <unk> I mean, we'll go back to 1.3 1.4 million loans and and then with the perspective of 10 that he guilla. Even go further so the good thing is the base line you know we've got us from going any gross pipeline that allows us I mean to produce you know I would say.
You know a good good quantity yummy navan, Susan in particular quality answers given the cost profile I mean of those answers.
On on M&A I think it's you know what's important is to continue to remain extremely disciplined.
And while it sometimes unfortunate into cylix. It does have the advantage of you know I guess showing to the market that we are doing our homework I mean to evaluate assets that may fit the criteria that we are able to also very easily walk away. If we are too far away on price expectations and I think.
That's the advantage of you know not being under pressure to do any acquisition given the stronger than any gross pipeline. So we'll continue around those lines. There is no need I mean, four M&A and therefore will continue to be extremely disciplined when looking at stuff.
That's great <unk>, Thanks, a lot <unk>.
Thanks Roger.
Thank you.
Now take the next question please.
Please stand by.
I said from the line of Daniel My check from UBS, Please give a heche.
Hi, Thanks for the questions. Most my man spent a couple more firstly stone uhm tangible in a in terms of.
I guess a scale as a potential project would obviously be determined by the expiration progression, but is there any limitations to the size of so this plan. So you know the the size of the the operation Uhm, yeah, depending on the on the successes.
The expiration pans out.
Sure well you know I think the difficulty is that it's it's very early days and what excites me is that usually my exploration team <unk> tend to be quite conservative. This time. They are you know pretty upbeat and you know.
The feeling is that you know, it's it's a tier one type of asset now you know, let's do the homework and we'll see you know what we come out with it.
[laughter], Okay. Thanks, and then <unk>.
Next question. Okay then.
Modeling and financial question, you typically pay dividends to minorities in in the third quarter, even though she just sort of in the process of disposing of assets <unk> volatile number can you give us any <unk> on the timing and the magnet cheeses expected dividend payments to minority through.
Three the balance of yeah.
Sure we've got the.
Vast majority of activities coming soon too conscious.
Roughly.
Just just over 20% will come through in Q3, and then we're expecting the remainder to come through in queue for.
And can you give us a <unk>.
We should be thinking the manga cheated <unk> <unk>.
Do you ever magnitude if I take.
Total amount paid plus associated tax and friction costs, it's around 200 million.
Okay. Thank you.
And then yeah. The the final one I mean, I guess you have a need to <unk> the medium parts around capex for so it's a 2024 C direction down from.
<unk> this year, but as it is.
Is it possible to give any sort of indicative range I suppose in terms of.
It comes in where we would expect total capex, including interesting project spend <unk> and on the second follow up to that on the Capex look at the the Capex cash capex inside and the Uhm casually statement relative to.
The summers standing on standing in Grace.
I think there's some way to reach and that kind of 70 million dollar difference I you paid less and cashed in you've reported in total Capex would you expect to catch that all up and the remaining two <unk>.
Sure I mean, you know early days, but the road, we would expect on the gross Capex side, I mean to be around 200 $150 million. So the vast majority I mean, he's really in twenty-three ketchup.
In terms of sustaining and Nonsustaining Capex, yes, we know should be around 150 $200 million, even I mean, the new portfolio size was too lax assets, Yeah, that's probably where we will be coming up it that'd be early days as we haven't done it yet you know budget.
424.
That's very useful thanks.
[laughter].
And then I'll need just a difference in your balance here on the cash Capex. This is the <unk>.
Reported.
<unk> said this is effectively as you would expect the difference between a committed in a crude versus the actual cash outfit.
There is a delta I think there's a natural one during yoga fighting a project, which clearly narrow towards the end, but we don't see any significant issue with that it will narrow towards towards the urine.
Great. Thanks, a lot.
Thank you.
Well now take our next question.
Okay stand by.
From the line of <unk> from Barclays. Please give a heche.
Yeah. Thanks, guys Uhm, just a couple of questions from my sorry, I guess first one slowly pulling up on one of those times questions.
<unk> is there anything you can do to reduce the effects of its cost of capital the withholding taxes add two when you Wanna move cash around the group in particular I was thinking what do you want a return on capital is there anything you can do to sort of you.
He had a bypass that Oh, Oh, Oh, yeah, otherwise avoid it.
And then second one just one along the project until the sea I'm, so much about that whole blight overshadowed by events in Kosovo, which is great.
What's gonna happen to that project. Thanks.
Sure. Thanks, I'm always on.
On the overall capital from the thing the best way to mitigate is to put in place local financing and would report that in Q3, because we are just indicated it blown in in country for about 100 have been more than 150.
Million dollars locally in particular for refugee which is the way I mean to be a bit more efficient over on in terms of.
<unk> kept some movement on Carolina I would just say that you know there's been some optimization done around the latest results that we got and will probably publish.
Later this year no some of data on Carolina.
For the time being as you. So I mean, the priorities delivering the two existing projects and then to line up the next two ones in the next two ones.
Would go into construction some time in the 25 26, so we still have some time around those projects.
Thank you.
And they'll take the next question.
Can you stand by.
This is from the line of Sunday P. T for Morgan Stanley . Please give a heche.
Thank you I'll take that good morning, and good afternoon.
Had a few questions. So firstly only carbonation. So basically what's your total you can fix it quite <unk> carbonation target to have you ever seen the first the first announcement today.
Construction and how do you plan to finish it out.
So for the the total Capex I mean for the solar blown to add subdivide misawa is $55 million and and and the expectation is to have the solid blond fully commission I've been running beginning of 25.
I would say that.
No 20 per cent, probably I mean, he's gonna be injured. This year in the most of it is going to be incurred next year. We are in parallel also looking at the potential for solar blondes in in <unk> in still in discussion for a solar plant for.
<unk> in order to reduce our overall production cost. So you know obviously soda is extremely competitive and this is why we are accelerating on this front, which is both I mean for reducing of cost and and reducing L. C O two emissions.
Perfect. So based on those three projects are you would you be in a quick question to achieve a ticket per cent reduction in the world emissions.
By 2030.
He is completely I mean, that's you know that your objective. We've also ensure that you know there was alignment around those objective with.
Management compensation. So you know I think the restroom incentives to make sure that we are able to have a total emission per arms below 600, and no by by end of 25 and can.
Those projects are part of that strategy.
Perfect. Thank you and then pushing on dividend. So can you. Please help us think two total channel 420, 23, yeah should we be expecting close to you sort of 300 million in Brooklyn, similar to 220 22 levels.
Because of the group projects should we be close to 240 million, which is G analyzing them, but for women.
No I think we're still committed to you know what we said initially which is to be in line with 2022 shareholder returns level, which was around $200 million.
Leave it at around $100 million for buybacks.
We just in a committed I mean $100 million as best of an H. One you know which is in line with the 200 target I mean, phoenicia, which on an annualized basis is already $25 million higher than the minimum dividend that we had said back in 2021, but in line with 22 and.
The buyback you know it's been <unk> I mean, beginning of of H, one with only a $20 million completed so far but that's mainly because of you know the significant capex that we had on the project side. So we wanted to make sure that we were all on track and would expect this I'm into significantly increase in.
H two.
Okay. Thank you and then a question on tender Guilla Ah. So what what are the next milestone supposed to update you might've got don't be so sad, but at the end of the yet I mean thinking about the timeline so what about possibly if you're studying and first first prediction is it's been 2028.
Be bought forward because of the and could feel like I've seen so far.
Sure I think you know, we all need first I mean to see the results of any of the 23 campaign. So that'll those results will be published in November but it will have only I mean, the older Drillings that had been done until the end of August So we'll have to wait.
For further updates in Q1 with the food the food the food results of this twenty-three campaign and the only once we have that we'll be able to plan you know what are the next steps.
Thank you.
Thank you very much.
Thank you well I'll take our next question.
Please stand by.
This is from the line of commentary from Bank of America Securities. Please Skyler heche.
Hi, <unk>. Thank you for taking my question and sorry, if you've already touched upon that my line was cutting in and out earlier I should probably capital returns in 2024 and beyond well, you'll be putting out a a sort of like a multi year plan. So much of the one currently in place with minimum threshold and if so when do you.
Plan to announce it.
Thanks, I mean I.
I think that you know once once we will have completed the build next year of the two project. Our goal is clearly going to be able to continue to increase the shareholder returning program while at the same time strengthening your balance sheet.
We will therefore to provide a fit at outlook on this next year, but at a high level of a program is you know pugnacity of dividend. So if the gold price remains about 1500, and our leverage below 0.5, <unk>, we should be in a good position to continue along our current trend.
There have been you know prudent in in 20th Street were located kept store across you know where this year's priority and therefore it is as it is a big year Capex with 22. Our goal is to you know really finished the bills in a strong position and then see how we can continue to increase our program.
24.
Alright, perfect that's very clear thank you.
Thank you.
Well now take our next question.
Okay standby.
This is from the line up William debate from banning back. Please go ahead.
Hi, guys. Thanks for your time today.
Just a quick on on <unk> on that you've covered someone's already but.
Yeah. So.
Gardening slightly below on production I was just wondering if you could give a little more of a stare on how much difference you're expecting fuss gardens.
And what steps are taking to improve the upset.
You expect it to go into Twenty-twenty full with volumes on costs.
What do I think on manner as we said we'd been cautious because like I like all underground mines. When you are setting them up you know you can have some in a slow start which is what we've seen in in H one we're expecting.
This I mean to accelerate in in age too. So you know, let let's see I think it's a it's a moving past I mean, we clearly I mean, you know.
Targeting the the lower end of the guidance that's for sure, but you know we need to see how the contractors and we're going to ramp up.
Uhm ultimately I mean, the objective I mean for us is to be able to ensure that you know going forward manner is able to produce between 180 to 200000 <unk> you know in particular from the two underground few and went up and to be you know.
<unk> you know below 1000 audience sustaining cost, which is the target for these assets.
Okay, great. Thank you I'm, just one quick follow up and I I know you probably cover those couple of songs, but just to clarify on the dividend.
100 million in the first half so any large coming up above your target should should would you be that and putting into a number is a a b for for the year. So what we can expect.
Yes, I think you know, we we would expect them in the second half to be at least and $100 million. So and you lose business I'm in target is clearly to 100 million and then on top of that is to continue to accelerate on on the buyback program.
So it'd be like last year, when we had a slow start I mean on the body back in each one and and then you know more aggressive in nature to I would expect them in the same this year.
Okay perfect. Thanks, a lot.
Thank you with them.
Thank you and I have a nice set of questions. So I went ahead and got to Martina that you choose your closing remarks.
Thank you for joining the call today, we of course remain available for questions offline. Thank you again.
Thank you just ask and K to <unk> transfer today. Thank you for participating and you may now disconnect.
Mmm.
[music].