Q2 2023 Kinross Gold Corporation Earnings Call
Please wait the conference will begin shortly.
[music].
Please wait the conference will begin shortly.
[music].
Good morning, My name is Rob and I will be your conference operator today at this time I would like to welcome everyone to the Kinross Gold second quarter 2023 results conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again press. The star one. Thank you, Chris Licht and Hill, Vice President Investor Relations you May begin your conference.
Thank you and good morning with US today, we have Paul Rollinson, President and CEO and from the Kinross Senior leadership team Andrea free brew launching bird that Julio <unk>.
For a complete discussion of the risks and uncertainties, which may lead to actual results different from the estimates contained in our forward looking information.
Please refer to page two of this presentation. Our news release dated August <unk> 2023, the MD&A for the period ended June 32020.
<unk>.
And our most recently filed.
All of which are available on our website.
I will now turn the call over to Paul.
Next Chris Thank you all for joining us.
This morning, I will provide a brief overview of our second quarter.
Comment on our outlook.
Get you on our ESG initiatives.
I will then hand, the call over to Andrea to walk through our financial performance.
And Claude <unk>.
Discuss our operating performance and projects.
We had a great second quarter contributing to a strong first half of the year positioning us well to meet our full year guidance.
Tasiast, Eric it's you and La Coipa.
<unk> excellent results, representing approximately 70% of our production in the quarter with an <unk> of approximately $1 per ounce driving strong free cash flow.
At Cherokee and La Coipa.
Good performance was driven by strong grades and recoveries.
And Tasiast the ramp up continued during the quarter and the operation delivered record production.
160000 ounces at a cost of sales of approximately $650 per ounce.
Construction of the 2014 expansion project is now complete.
We are well on our way towards sustaining higher throughput levels by year end.
Our U S operations delivered on plan with stronger production over the prior quarter.
Our cost of U S assets are expected to increase in the second half of the year.
The mines are performing as planned and we continue to work towards lower cost production next year.
With the startup of man show.
Favorable mine sequencing in Nevada.
<unk>.
Construction activities are advancing well.
And the project remains on schedule and on budget.
To begin contributing high grade ore to the Fort Knox operation in the second half of next year.
At round Mountain, we remain excited about the future.
We are encouraged by ongoing optimization for the phase <unk> open pit and.
And expect to complete the work later this year.
Work on the underground decline at <unk> is progressing well.
And we are on schedule to begin definition drilling early next year.
As you will see in the video link provided in our press release.
We see potential for a lower cost bulk underground mining operation that Spacex with further exploration upside.
Coal Hill, our satellite deposit at round mountain.
To deliver strong exploration results.
Further confirming our view that there is.
Potential for additional high margin underground mill feed at Gold Hill.
The supplement is excellent.
And finally.
We continue to make excellent progress at great there.
And the work we've done continues to support our view that this development project is expected to become a top tier mine.
We currently have 11 drills on site and the focus has been on extending our underground resource below the initial open pit resource.
We will be updating our resource statement at year end.
Expect a meaningful increase to the underground resource.
We are pleased to have recently signed an amendment advanced exploration agreement with our partners.
The wireless game Laxalt first nations.
On whose traditional territories the project is located.
This amended agreement reflects the changing nature of activities from surface exploration two underground exploration as the project advances.
A great bear the path is clear as we continue to focus on advancing the project through permitting and construction.
Ned will elaborate on other activities that great. There later on the call.
Year to date, we have produced over 1 million ounces and.
And we remain on track to achieve our production and cost guidance for the year.
We strengthened our balance sheet during the quarter.
And at current gold prices, we expect this trend to continue.
Our quarterly dividend remains in place.
Which offers a competitive yield of nearly 3%.
Since 2021, we have repurchased $400 million of shares.
Representing 8% of our shares outstanding.
Overall, we view the buyback program is very successful.
However in accordance with the plan, we announced last fall.
We have paused share buybacks based on the changed by one of our rating agencies moving our outlook from stable to negative.
As a result, we are prioritizing debt repayment.
In Q2, we repaid $220 million of debt.
And we plan to repay the remaining 100 million drawn on our revolver in the coming months.
Going forward, we will continue to review our capital allocation priorities in.
In the context of the prevailing environment.
Lastly, I'd like to highlight our latest update on ESG initiatives.
We recently published our third annual climate report.
Which details climate related disclosures for last year.
Thanks, Paul This morning, I will discuss financial highlights from the quarter provide an overview of our balance sheet and comment on our guidance and outlook.
As Paul noted, our second quarter performance with strong production and cash flow improvement over the prior quarter as planned and over last year.
We produced 555000 ounces with production benefiting from seasonality in our business.
Mine sequencing at Park Hill and.
And ramp ups at Tasiast and La Coipa.
Gold sales of 533000 ounces are in line with production.
In Q2, our average realized gold price was 1970 X dollars per ounce in line with the average spot price.
Cost of sales of $900 per ounce with lower over the prior quarter due to higher production and particularly strong cost performance at Tasiast <unk> and Macquarie.
Free cash flow for the quarter was $247 million or $177 million, excluding working capital changes.
Turning to the balance sheet, our financial position continue to improve in the second quarter and remain strong.
We ended the quarter with $478 million in cash at approximately $1.9 billion of liquidity, both improving over the first quarter.
<unk> declined by approximately $220 million during the quarter as we pre repaid $200 million.
Revolving credit facility as well as $20 million on a cassius loan.
As Tom mentioned, we plan to prioritize repayment of the remaining 100 million on a revolver. This year further D Lee, Virginia, our balance sheet.
Are trailing 12 months net dot to EBITDA ratio improved other quarter and and is now 1.3 times at current called prices is expected to decline further through the remainder of the year.
At the end of the second quarter, we announced a debt refinancing whereby we issued $500 million in senior notes to you in 2033 to replace our outstanding 2024 senior notes at a comparable interest rate.
In summary, we are reaffirming our full your guidance for production in the range of 2.1 million ounces cost of sales of $970 per ounce and a sick of 1300 and $20 per ounce all within a plus or minus five per cent range.
Now turn the call over to clot to discuss our operations.
Uh-huh.
<unk> <unk> <unk>.
Production and lower costs will be 321.
All of our minds.
So I was used to live in another room.
Thousand ounces.
<unk> $652 an ounce.
<unk>.
<unk>.
Covers.
Mmm.
Completed in June information continues.
In addition, you might be progress on the <unk>.
The branches achieve superior of 24000 tonnes per day.
And I'm also reached.
8000 tons per day.
Okay.
Just demonstrating me operations ability to achieve the expanded.
Our purpose is now I'm, just saving the science Hill, which.
Which we expect to achieve by the end of the year.
Does your solo project.
Cause it seems to be complete.
Mechanical with a will advance the focus on the installation of the photovoltaic modules.
We have now is 265000.
Total 80000 panels plan.
Electrical work is underway and planning.
Planning for commissioning has begun.
This project is on schedule for the completion money into your.
<unk> production this dressing well.
For your plan.
What did you do after four months I'm driving recovery driving production optimization continues through the second half of the year.
As discussed earlier processes are higher relative to the rest of the portfolio.
I expect it to increase in the second half of the year before declining next to you.
Beginning with footnotes to do production was higher due.
Due to plan high processing Bruce.
<unk> and a benefit from some additional answers from unplanned <unk>.
Advanced swell and the food no modifications to accommodate all from the major project.
We're on track to begin processing high-grade <unk>.
<unk>.
At Bowl Mountain production improved over the <unk>.
<unk> realized in Q2.
Following the way the challenges in Q1.
<unk> <unk>.
Starting rates.
Mountain, which is a plan production quota, which was relatively flat compared to Q1.
As Andrew you mention.
Comment on <unk> and Carlo project.
Finishing with an update on <unk>.
Wow.
Period of elevated calls.
Want to take a minute to update you on why we really excited about the future of pro Max.
Following a period of investment and the new faces.
And has the potential to be a you said you were.
Became producer to the 20th.
With higher margin is strong returns on invested capital.
Here's how we currently envision the future for a mountain.
We are currently mining through the remaining portions of open cases W. Two which is expected to maintain or cream.
Option level, 220, 24, and provide a meal and bleached hill into 2025 2026.
After mining and <unk> is W. Two we are studying the option to transition to phase S, which could sustain opens at production through the early twenties thirties.
<unk> was open pit mining.
S.
Could also potentially begin underground production from phases ex NGO Hill later in the decade.
We are pleased with the ongoing work in the following areas.
S ongoing authorization or it gets showing encouraging results with lower capital intensity.
Driving improved economics compared with our prior review.
I'd say his ex construction of underground exploration bitcoins progressing well with 350 meters dissolve thus far.
Line is on track to facilitate the sort of definition drilling early next year with production from <unk> envision to begin in the late 20th 26.
The future from Mount and continues to take shape, and we look forward to sharing more positive developments over the coming quarters.
Coming back to go Hill, which is located seven kilometers away from the round mountain.
Continue to see strong potential for a higher grade underground mines supplementing production Sanchez S.
As Curling, Washington State results from ongoing underground exploration continues to confirm.
<unk> and continuity with high priority target areas.
<unk> will continue throughout the third order with the aim to build on the resource proximal grows.
Notably yesterday's release includes the best <unk> in the past 10 years.
With home 11, 48, intersecting 41 grams per ton over two meters.
We remain excited about this project.
Continuing to advance our work over the coming quarters.
Moving to the update on great there in.
In the second quarter.
<unk> to make excellent progress on several fronts.
Starting with exploration.
Currently 11th reached operating on site.
Q too we drove approximately 56000 meters.
The year to date total to approximately 96000 meters.
Expiration is focused in that area 500 meters.
Kilometer below surface at the L T <unk>.
And drilling efficiencies since introducing directional drilling has been enhanced.
Method decreases the amount of drilling required to reach the targets improving productivity and cost per litre drill while also allowing for more efficient and precise.
Gary.
With a current focus on resource extension recent results or incursion continue to confirm hydrate generalization that steps.
<unk> B R 805, which intercepted 6.7 years at agreed of 19.3 grams per ton.
With the success of our drilling tempting. So far this year, we have seen meaningful grow into underground results.
Outside of Drooling. Other activities are also at times well.
Feasibility local engineering.
Coin infrastructure is approximately 70 per cent complete.
Clothing, geophysics and soils geotechnical drilling.
And the procurement process for a long lead items such as the camp current.
Structure and water treatment plant.
Three engineering firms with significant experience in Ontario has been engaged to support our strong and house owners.
Engineering and feel test for campaigns for the main project continue to it sounds well with the results of this order to be included in our preliminary economic assessment next year.
Permitting activities are also progressing well, including initial reviews by the impact assessment agency of Canada.
The draft initial project description.
I will now turn it back to Paul.
Thank you Sir.
Before concluding.
I want to acknowledge.
Sure his significant contribution to kinross over the years.
So thank you ma'am and all the best in your next chapter.
Closing.
Meaning of goals.
And have delivered a strong cute you in first half <unk>.
On track with our plans.
You're excited about <unk>.
Have a strong production profile.
January significant cash flow.
We continue to return capital to our shareholders through an attractive debenhams.
We have an exciting pipeline of exploration and development opportunities.
And finally.
You're very proud of our commitment to responsible mining.
<unk> E S P performance within the industry.
With that operator, now like to open up the line for questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question comes from the line Joshua from RBC capital markets. Your line is open.
Yeah, Thanks, very much with the disclosure of the great Bear underground resource upside I'm, just wondering if it'd be a bit early is ready to read through sheer to potential design changes or is this more so confirming somebody my life extension that was signaled with the with the original.
You know study.
Hi, Good morning. This is.
It's actually the easy manner. So it is an extension of the resource for growing the resources.
And you'll.
You'll see the upgrade with ear and resources pretty exciting.
The design is described earlier.
Okay.
Underground mine and starting with.
And on the outlook for Tasiast the grade in the second quarter <unk> continued to be pretty strong.
As a follow up to that the prior mind, if I had outlined a larger drop off an upcoming three years for for the existing guidance is there any opportunity to to start over.
<unk> sequencing that with some of their preference we've seen this year.
The Justice Koetje. So we have seen obviously the great in the second quarter was better.
We are balancing.
<unk> five G data plan, so we were able to increase our stockpiles slightly.
I think the parameter was 1.7 times EBITDA I believe on my Matthew are already below that are slightly below that just curious on how are you thinking about maybe a targeted.
Rachel.
The 1.7 that we talked about.
Add launched be enhanced by that question, where are not that <unk> at that point in time.
Part of that design of the plan, which was always meant to protect the balance sheet and our investment grade.
We are aware of that now that we're just around or just slightly below 1.3 times at the at.
That the second quarter.
We have a 1.65 at the end of Q1.
<unk> sort of half related.
Action and have higher EBITA.
And you know our priority going forward.
Add an arm and a remark.
Uhm.
In addition to the 200 lately during the corner.
Beyond that we would you know target.
Kayla starting to take down the temperament.
<unk>.
Check out to finance the cash portion of the great acquisition that's.
That's J O N early 2025, but it has an insurance. So we can start repaying that uhm at any point in time.
Target <unk>, Yeah, we would like to continue to write.
J O N M allow one would be would be great.
Depending on <unk>, <unk> <unk> <unk> <unk> <unk>.
That you know it is what it is in transit their writing and and so I ask that.
Taking now in terms of debt repayment, Apple will get that Sam dot outlets reversed all else being equal but in terms of when they might review again.
Typically at least a couple of corridor. So I would expect that'll be sometime next year either after <unk>.
Okay. That's that's super clear, maybe just switching gears quickly to perk or two it looks like the grades are coming in pretty decent and it sounds like it's going to be even better in Q3 does it get kind of deeper into the pet just curious on when you say higher grades in the second half are we thinking like something close to what.
Cheap in Q4 of last year like 2.5 grams per ton of that kind of in the right range or just trying to get some color on modeling perk at two in the second half.
Oh, that's a good 0.5 would be a little bit high.
Mmm average.
For one so we would anticipate.
Mexico.
<unk>.
And then dropping back down in queue for.
The secret to receive a complete your lost Ya.
Two four and then next year.
Hold your the greatest struck down.
Ross.
Quite a bit.
Picking up the phone cause.
Cause we do the additional stuff.
322.
Pick up again.
Okay, great. Thank you very much.
And your next question comes from the line of Anita Soni from CIBC World markets. Your line is open.
Hi, So I've got a lot of sort of fine tune modeling questions, but for someone to say congratulations on the good Carter and it's good to see you guys package uhm.
Getting within your guidance range for the ear. So could you just to follow up and extra step is that you said, it's slightly higher or like is that like a one turn or is it is it materially higher than it does here.
<unk>.
And the greatest.
<unk> next year.
<unk> five G Lebanon.
Alright.
That's what it sounds production to next year.
Okay.
Yeah, just for the year, So I think right now here.
What kind of like 1.3 in this quarter.
I'm not this quarter I guess, there's a little bit lower it's one of the questions I wanted to ask but when you're a little bit slower. This quote on this repression and <unk>.
I'll have to get back to you though.
Uhm.
Great.
Sure.
Alright, alright so.
Production.
I could choose on track.
Anita this is maybe.
Maybe I can help.
Madeline as you know multiple.
<unk>, which is lower grade almost no shrimp in the sauce.
Which is the zebra.
Great and higher strength, and with which card is including two cents in.
One four we're gonna be mind anymore.
Area of the <unk> as we stripped phases.
13th.
And 15.
So the greed in 2024 will be slightly lower.
<unk>, we're north of 500000 ounces of 32, so that's.
<unk> <unk> <unk>.
Potentially in 2025, we get back to some other maybe a little bit later than this here by about 515.
550000.
I hope that helps.
Thank you, Okay, and then just moving onto falls in round I think I guess.
Just trying to understand uhm.
Some of the movements in terms of.
You said that cost could go higher in the back half of the year, which I get <unk> is it is it related to is it related to the strip ratio that that's happening there and and I just noticed like things like the you know on.
Mountain New processing card came down could you talk about that uhm and what.
And will that be sustained.
Alright.
Alright.
Accounting.
<unk>.
Which account.
Okay.
I wanted to take off.
<unk>.
Yeah.
Aw.
We're gonna say I forgot I had to make I had to like take off a significant amount on the inventory to to make it balance sorry.
That's why I was driving up at the.
When will that reversed.
I think it was like $60 million to make the costs down so I can ask us.
Yeah, I mean, we we've we've always said we expect it cost around to be you know to stay elevated netgear.
They were down in the second quarter.
The higher and if that can have here at at at home Internet Israeli jet related to our hill accounting and it kind of kicks in a second half of that here.
Okay.
Come back down in 2024.
Alright.
<unk> <unk> nothing in 2024.
Yeah I think.
Its counting it's not really representative of cash flow.
Inventory accounting effect and next year will be moving into a different portion of the plan with.
With.
A stroke.
Alright.
Yeah, I think we may still have this inventory impact next year, but we don't expect it to be.
L as in a second half S. S N.
Clinical priced dependent as well.
Okay.
Alright, we can.
Yeah.
Yeah, I think so but yeah. Thanks, Sir thank thank God clinic headquarters.
And your next question comes from the line of carrying Mccurry from Canaccord Genuity. Your line is open.
Just to get money, everyone. Just a question on the Tasiast ramp up.
<unk> just arrange a thousand times a day on the projects complete and I know you're wrapping it up but I was just put in July and is there any guidance you can give us or what we should expect the Q3.
Yeah, we really.
Put in July alright.
Mmm.
June and July .
We didn't mention that we had to shut down.
The first.
June .
A little bit into the June July crossover so we have some <unk>.
Mmm.
Things with some five G.
Once we got going again.
<unk>.
What we're doing is focusing on.
Issued in the back and.
To make sure that we don't.
System too much.
For a solid.
<unk>.
Relative to the plan.
So should we be assuming someone 20000, Pennsylvania, two three or is it too much.
What are we said we would average between 20 and 21.
Closer to 21000 for the whole year.
Okay.
Yeah.
Okay, Great and then maybe on the solar plant Uhm can you quantify.
Cost savings you'd expect to see that.
Yeah. It's.
I'm gonna have to get back to you on <unk>.
Security number.
Cost per ounce, we've only before.
Considerable savings on our fuel costs.
Obviously it is b.
The vantage operation.
Alright.
<unk> $15 an ounce.
I'm expecting.
Just one.
Savings as well.
Okay, great. Thank you.
And your next question comes from the line of <unk> from Scotiabank. Your line is open.
Good morning, everyone. Thank you so much for taking my questions I can uhm.
<unk> second.
Cough.
Can I have circle back to the the resources just maybe not can you just remind me the underground at great Bear when you reported the resource I think it was underground of about $1.3 million, what's that in the email between you know.
<unk> 500 meter.
I'm just looking at your cross section on page 23, and I'm, just trying to understand for the resources.
Thousand meter level.
Yeah. Good morning, we got we got your name right. This time right [laughter] Alright as me.
[laughter].
Yeah. Thanks for your question that's a that's a great question. So I'm just looking at the numbers here so.
<unk>.
<unk> was approximately 1.7 million ounces.
And you're you're you got it right like that that's down to the to the 500 meter Mark based on what we got from drilling and.
Like I mentioned in your presentation. Our focus now is from 500 meters below that.
Down to one kilometer. So we're very focused and a directional drilling is amazing it's saving us a lot of time, so we're bringing in a lot of.
Potential answers here.
What we see is that with a year and resource statement when I see Tania is is material increase in the underground resource so.
You know be be be watching for that number that will come by by year end.
And would you be able to take care of some sort of guidance on what we should expect.
Like we can have.
Yeah.
You know we've.
<unk> <unk> <unk> <unk>, we haven't put a technical report around it yet so.
It's arranging.
Paul is it's ranging you know.
<unk> again like when all set there is no technical report.
Based on <unk>.
Our vision based on what I look at from my experience based on what I look up from the drilling and when I see what's on the screen. It's it's potentially.
When I saw it now is looking like 500000 increase in approximately.
Ground resource and targeting continuous growth into your end.
Okay, Yeah, that's awesome.
And I think is the other point that made earlier is we are seeing.
Generally higher grades.
Part of that is how we design Ya.
<unk>.
For great at an apartment a pet.
Seeing a rebalancing.
Focus on the underground which is dragging the.
The average for it up as well.
Okay.
<unk>.
Maybe just on on your own you know thinking of an offer for the company.
Can I assume that at your <unk> when I look at your resource category can I assume that you know the exploration success, you're having a great bear the expiration successor Gold Hill.
And at <unk> at the three projects to have you know increases and resources.
Yeah for sure can you <unk> there will be increases in resources I'm not sure if we're gonna catch it up and.
Block model and an update for gold Hill by this year M should the drilling is there and and you know we bring you in and we look at what potentially could be but but the other two assets great bearing currently we're looking at an increase in resource yes.
We we won't have internet gold.
<unk> Hill, and an underground resource yet.
Seeing the drawing them.
And the fullness of time now.
Yeah.
Maybe that's a year and 2024.
Maybe if I could ask about Jesse overall reserves I know, it's just half a year has gone by that you know any guidance on how you're seeing your dwelling at your current mine sites to see whether reserves can be replaced at those assets.
You know at this hour.
Tanya Lake, we we bring bring Allison from.
Not being inferred or we call. It countered category for an internally in Kinross and we bring that into it and then.
<unk> and bring that into indicated in <unk> that is ongoing at home.
That's right our focus mainly when it comes to resources growing grapes.
Again after that is growing Carlo EM with the underground decline that round mountain, we really Wanna drill from depth as you know we've.
Alrighty progress we're underground now, but thank you for a little bit of time to get there and set up.
<unk> thanks from underground.
Bring in more resources and then we continue to Germany. For example, as an example in Fort Knox in Britain.
Some of the resources into into reserves.
At Fort Knox.
<unk> operating plans that we have.
Okay. So I should take that as a bit too early for you to comment on whether it's a replacement is occurring.
Yes, yeah.
Okay, We'll ask next quarter and then if I could just ask the final question I guess, Sam you know Andrea touched a little better about.
Just the inflationary pressures cost structure, you the <unk> of inflation and 20th.
2022, you mention that you are lower oil.
Oil prices diesel prices target can be helping you cough that five royalties can I just touch on the other components are you seeing any.
For any lower pricing and other consumables <unk> anything else that you know relative to what is that you that you.
You may not be experiencing it now cause he may have inventory.
You know are you seeing any relief.
Portions of the cost structure.
<unk> I mean, we are seeing some relief in certain areas.
Really been going the other way. So you know overall, we're not expecting to see the costs.
Uhm sign on as an example is often speak pricing and.
The conflict in your payments, causing us supply.
Issues with our exposure to contact Susan that's crazy.
Put some bread.
In Nevada.
The process say 12 months.
Really Bang June 20th 23 for the price of June 2022, and it was at its peak.
As we go move those things, we do expect some relief.
We've been watching it very closely.
<unk>.
That's all it was a good one.
And.
<unk> <unk> in general we found that most companies between three to six months.
Inventory and contract than others. So you know should we get through these like yourself have mentioned on the tower, which was 520 twenty-two once we get through that you know hopefully we will see somebody can cough in 2024, as we get really now I need this tower and or maybe other inventories at.
<unk> Alright, alright, you know.
Prices. So I was just wondering you know is it safe to look at when Paul mentioned, possibly declining into 2024 is that just due to operational three then and in other or can we see some relief an inflationary pressure.
Yeah, we certainly expect to see some.
There's something about you that we have on sides now is.
Purchase at higher prices pull them off for paying more for them now and then next year.
We will see the opposite effect.
With some other items.
<unk>.
<unk>.
<unk>.
But.
The first part of your comment Kenneth also true in terms of the operational impact snakes that cost to come down and then U as in 2024.
<unk> in Alaska, and then I'm also in Nevada, I as I noted earlier.
Alright. Thank you so much for taking my questions I'll leave it to someone else to ask.
Thank you.
Thank you.
And again, if you would like to ask a question. It started one and your telephone keypad. Your next question comes from the line of Mike parking from National Bank. Your line is open.
Thanks for taking my questions and <unk>, just a bit of a follow up on this question.
Some of your inputs improving mainly like diesel are you seeing an opportunity to add additional hedges and things, where you're seeing potential for wins and walking good prices.
I mean, we typically.
<unk>, you know somewhere and assist you with 60% of.
C N N W. T I.
Yeah. So we do add had just started periodically.
<unk>.
And the market and then you know to lower amount for for a couple of Earache out you know our guidance for this year factored in that that we had in place and you know we're still on track.
On track.
With that guidance were hedged for this year about 60 per cent of our exposure data average rate is $36 a barrel and then.
Pulling out in 2024 hours.
Between 35, and 40% at at a bit of a higher cost.
$8 and then we've got a small amount of headrest out in 2025 so.
Setup role that forward as we go through when we see opportunities.
Okay. Thank you very much that's it for me.
And there are no further questions at this time Mister Paul Robinson, I will turn the call back over to you for some final closing remarks.
No. Thank you.
Rob operator, thanks, everyone for joining us this morning.
The.
Look forward to catching up with you in person in the coming weeks or months X.
This concludes today's conference call. Thank you for your participation you may now disconnect.
Please wait the conference will begin shortly.
[music].