Q2 2023 B2Gold Corp Earnings Call

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Pardon me everyone. Please remain on the line your conference will resume shortly.

Everyone. Please remain on the line your conference will resume shortly.

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Okay.

Good day and thank you for standing by welcome to beat two golds second quarter earnings Conference call.

This time, all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one.

Again, please be advised that today's conference is being recorded.

I would now like to hand, the conference over to your Speaker today, Clive Johnson, President and CEO . Please go ahead.

Well, thank you operator apologies on behalf of <unk>.

Phone service bought our technical issues, but theres, so we're a little bit late getting going.

Welcome to the <unk>.

Conference call to discuss <unk> second quarter 2020 financial results.

Another very strong quarter highlighted.

Highlighting the excellent performance of our <unk>.

Operating team.

And we're very pleased with the results.

So it makes us feel very comfortable we're on track.

Our guidance for 2023 for the year annual guidance.

I'm going to pass on them.

Sentiments showed our CFO who's going to walk you through the high.

Level of what you probably already read which shows the details on the financial results that were going to have an update from the vital focusing on.

Project construction, the backburner and things are going very very well there. So we remain extremely strong financial position.

And the company that allows us and Mike can talk at a high level of both ought to look at funding.

Along with our industry leading dividend.

And in a very strong cash position to come into production as bill will highlight.

In the first quarter of 2025.

I wanted to deal with that.

An issue that's come up I guess since we put out a news release.

So Molly.

Conversations around the potential due 2023 binding coatings.

What we put out in our news release.

Well, what we said in our distressed or substitute called a mine or will continue to be mined on page five political at Cardinal actually page six from a cardinal pits receipt of an exploitation license for about charcoal.

One of the year as we were done.

I'm going to start trucking worked out in the call. If you remember the Tacoma mill.

Yeah.

This area remains outstanding pending Finalization exploration license with Bam Tech on North terminal area remains outstanding pending Finalization of proposed new 20 chasing mining code attitudes O'malley.

We neglected to say it won't reduction from the <unk>, which is a more thorough analysis of the situation and goes into more detail.

When we say it in the MD&A on page 11, as the company along with other mining companies in Bali are engaged in discussions with the state of knowledge to provide input into the post 2022 binding code. It's tool at this point it remains.

Any new body code is not expected to impact the existing for coal mine operations, which will continue to be governed by the existing mining convention and said 200 to 2012 body code.

The impacts of the new 2020, so anybody call Coca Cola, which devices.

Sure.

Sorry, I'll end it there so bottom line is what we're saying is that the.

Any proposed 2023.

Mining code.

So our understanding of recent consultation with government asked me last week that governs confirming that their stock. This code is not going to look back to previous existing code that would be on Basel. The 2012 code or combining convention that covers that came out was that dictates. The terms the ownership <unk> 'twenty with ourselves and the government of Mali and also dictates your tax.

So all of the details of that trial.

Sort of a trough quarter. We expect this is applying to other gold miners and value as well who have solid outstanding coach and conventions from the past. So I just wanted to make sure we understand what we're talking about here. We believe we remain convinced that the government of Mali, what's more gold mining in the country.

And once people like ourselves as foreign investors to invest we have hopes of plans to expand in Bali. Additionally, by trucking origin grant from the Bill <unk> with other areas.

Cologuard two feeds soft saprolite material into the mill.

We also have our concept.

Conceptually, if I'm talking about or looking at a study of the year that could involve building a second mill potentially if the economics work and all the other factors coming to bear with a new resource and the doors et cetera. So that's what we've been talking about potential expansion I.

I think it's really important to point out that if you look at the coal as a great success in Bali and other mining companies with great successes and look for all stakeholders. So we invested over half a billion dollars U S to build for call. It a 100% it might be to hold the government.

It's 20% so call it <unk>.

He is actually contributed $1 $2 billion of revenues to <unk> might start to production.

Based on our calculations the people of Mali have benefited the country Mali has benefited by over 50% of the economic.

So we took all the risk upfront building.

They realized over 50% with the economic benefit that's been a great success. So we remain committed to looking at further opportunities to volume, where we believe that the government.

From what we've heard remains committed to increasingly many of the countries. So when weather provided COVID-19 comes out we will have some share further consultation with government to talk about how we can work with our partner and the government to potentially expand production ethical. So I just wanted to re clarify that situation.

We've got a little better job of explaining the Newsweek, which was about the financial results and an update on things. So at the end of the day.

To make sure we communicate with everyone that both the reality of the situation.

Recall that we expect will continue to be a great success for all stakeholders.

I'm going to pass it on.

Tim It's Mike.

Highlights of our financials and Bill will talk about <unk>.

Actually one more point I'll make before I pass over.

Quoted out of context, a few weeks ago in an article that said that we were <unk>.

Actually pursuing more M&A.

At the end of the day, our strategy remains very very much the same as it's been for a while here, which is focused on our development projects, which includes the goose.

Which is that people will talk about also the <unk>.

We continue to be committed in building roads et cetera for the expansion of the Covid by trucking work, we're very convinced that we're very committed to a large exploration budget of the very large budget goes we're excited about the exploration upside there and the other projects around the world and we're exploring including around existing mines. We are not anxious we're not pursuing actively pursuing.

At the moment, we will not take on another development project that we've never done that before we will not start doing it now trying to go through those at the same time. So I just wanted to get there on the record that we are always looking at what's out there in terms of are there avenues of production growth et cetera, we're not resource limited.

Stepping into it whether it be a problem by you or someone else or whether it would be a further another project to build we're busy we're very committed and we're very focused part of our success is our ability to focus on one project.

Todd.

So with that I'll pass it over to Mike.

Hey, Thanks Clive.

I'll just touch briefly I think and there is also as Claude mentioned I think the good quarter from the operations and financially.

With me on the revenue side, we sold our 240000 ounces at a realized price of 19 $269 an ounce that's more than $1 an ounce.

Higher than we were in the same period last year benefited from a good gold price, it's obviously bouncing around a bit.

But it's still well above 90%.

We look forward for the balance of the year as an estimate.

On the production side.

Again very much on budget.

The total production from our three operating mines 246000 ounces at just almost exactly on budget and when you take in our share of calibers results, which is 24% share right now 263000 ounces right on budget overall solid logos not just there for call it little under for the period.

8000 ounces below budget at 152000 ounces.

There was a delay.

Excavator, there and slightly lower production from phase <unk> through our ability to access the pet and the amount of production mining we can actually do there, but we believe will certainly head for colas target for the year.

<unk> was a little over budget is 49000 ounces, so 5000 ounces higher than budget.

<unk> benefited from higher than budgeted mill feed grade and belt throughput and they know what Chicago is a couple of thousand ounces over for <unk>.

Generally better or slightly better than budget on all factors. So overall right on budget.

263000 ounces in total production for the company.

Translating that on the cost side, so $636 an ounce.

So both of those numbers were $335 $40 lower than budget overall, we did see some offsetting factors.

<unk> was $538 and I'll say it was actually a little higher than budget, which is a function of that lower than budgeted gold production.

Effectively.

On the fuel side of the pool that we saw some offsets there. So diesel was a little lower than budget. But then we also saw <unk> switching to a new magical source, hoping to switch then you had the <unk> source.

100 <unk>.

It's a little greener I think for environmentally friendly so that's a little more expensive than what was budgeted.

<unk> $817, an ounce, which is more than $200, an ounce lower than budget and it really benefited from lower fuel fuel costs, we were 20% plus lower on both diesel and <unk> <unk>.

<unk> was also to more than $200, an ounce lower than budget $611, an ounce period and it benefited both from the slightly higher production as I mentioned and also.

Lower fuel costs.

A significant Horace mann's value, but still lower and also a weaker Namibian dollar.

Remember a high proportion of our costs and then maybe are denominated in Canadian dollars. So when we get that translates into lower U S dollars and we benefited from that.

When you look at the all in sustaining cost side.

Including everything our share of caliber $214 an ounce.

It was it was a little over budget for the period and Thats really a function of.

Overall, lower cash costs, but a higher capex.

Exclusively based on timing, we were lower in the first quarter on a lot of Capex timing, we caught up in the second quarter, particularly on some of the mobile Pos across all the operations in some of the stripping costs. So overall level.

Higher than budget, but no change overall to our guidance for the year. So I'll just comment that now so I think as we reiterated in our.

MD&A and news release, we expect that our guidance is unchanged for the year annual guidance, though including our share of caliber somewhere between $1 and $1 60000 ounces are mentally 90000 ounces for the year and on the cost side no change to the cash cost operating guidance for the all in sustaining cost guidance, we did mention and as I mentioned in the remarks.

We are benefiting from lower fuel costs as we go through both.

The first and second quarter. So we are watching that we'll watch that as we go through Q3, we still see the benefit of that rolling through <unk> for the balance of that Q3, I think we will come back in and look at our guidance again, but right now we're maintaining our guidance as is.

Your comments on some of the other operational bill is going to talk to some of them but.

Terms of the Cola regional development.

We've continued infrastructure development and we've got the roads.

We did have 80000 ounces for bed tackle production.

And our guidance for the overall for coal complex for the Euro is match, new pipelines and we don't see that coming through now in 'twenty. Three we think that will roll into 'twenty four but we think we have enough optionality in the.

Availability of order.

<unk> generally that our guidance will remain unchanged, we will still meet guidance for Cologuard Plex.

Goose built going to talk to you we did put out a news release just updated our capex estimate in the period that came in.

Close to what we said as we went through the acquisition itself.

So 800 million Canadian for the for the core construction of the plant and then about $90 million that for accelerated underground development, where we see that we can actually we can do more than was originally planned upfront and then we'll benefit from that in the first few years of operation at Goose, So still on track.

To break this on in Q1, 25, and our share of <unk> acquisition cost when you translated into U S dollars after taking into account the spend at Sabine already had its just over 400000 U S looks we expected to incur to complete the project.

Chicago continues on and just a reminder, as well there is a <unk>.

Or does it go to shuttles ramped out of 'twenty for an open pit mining activity, which go to pit to conclude in 'twenty five but then we will have ongoing production from wassa underground as well as stockpile.

Processing that that should take us right through into early 2000 2031 somewhere around there.

Well I think the sales process is ongoing no update to update you with there is a present.

<unk> investments you saw us look at that the most significant one in the current period and they put a great number today was snow lines. So we.

We invested $32 million there for a nine 9% interest install line.

That's kind of the part.

Part of the company's ongoing strategy just like you saw us invest in Matador from nine 9% investment last year and the other thing to highlight maybe on just projects that we did disclose $20 million more in exploration for the year were well over $80 million exploration budget for 2023 and that $20 million addition is exclusively for.

Back River back River district, so both goose, so more work there and the George prospects there as well. So we're excited to get up there and see what else we can make for bad River.

Couple of other comments on the results, though earnings overall.

<unk>.

Attributable to shareholders $80 million or <unk>.

<unk> per share adjusted earnings were <unk> $86 million or <unk> per.

For sure.

And then on the.

On the cash flow side, we have good operating and overall cash flow quarter of $195 million.

Cash flow from operations or <unk> 16 per share. So we benefit like I said from a higher gold price production right on schedule.

Good good cash costs overall, and some working capital timing so $195 million of the result on the financing side.

Couple of items to comment on there with the acquisition the main item that impacted the certainly the balance sheet overall in the quarter was the acquisition of <unk> as we brought in those projects onto balance sheet and in doing so we took the opportunity to extinguish.

Some of the existing.

Our financial obligations.

Sabine it entered into as part of their financing package. So in total we spent $111 million, which included extinguishing the off take agreement that was there with the private equity firm and also to extinguish one third of the existing Gulfstream with Wheaton precious metals, and we did that because we.

Effectively.

Royalties and we obviously really like.

Prospectively at Goose them backward with generally so it makes sense to try and take those out upfront different path. So we took that opportunity and then on the dividend side, we've maintained our <unk> <unk> per share for the quarter. The dividend is higher this quarter overall in gross terms because of that extra 200 million plus shares that were issued as part of the Sabine acquisition.

It's our goal to maintain that dividend going forward that level of dividend going forward as well as financing our capital obligations that we have for our very.

This development prospects globally with most significantly the gross prospects are.

This project is currently underway.

We did finish the period with that puts it in great financial shape over half a billion.

And the bank and we still have an undrawn.

Our revolving credit facility was 600 million, we added National Bank in for another 190 to now over $700 million available on our line Undrawn.

Half a billion dollars in the bank at the end of the quarter, so $1 two and sort of.

Available right on hand liquidity and as we look forward.

Bringing goose online as we go through.

I think what we see is we are very comfortable in our ability to finance goose.

Keep paying the dividend as we see and then also evaluating sort of the other capital needs that we have at ground under group. So I think we're in good shape financially there.

And with that I think the only other thing I'd add we'd like to give you an update on cash taxes. Each period for your models. So we did update the MD&A. There is an increased cash taxes that just over.

$250 million and Thats, because we budgeted at $2300 goal and now we're re forecast we've come out through the first half of the year over 1100, and we're forecasting $18 50, so so our new cash tax is.

Approximately $250 million just for your models.

And with that I'll hand, it back to clay.

Thanks, Greg.

Of course, what we're building.

A high level update on the exciting progress we're making.

Goose construction sure. Thanks Scott.

I guess I wanted to start out with talking a little bit about it.

Really the key things for this project number one obviously.

We continue to maintain excellent relationships with the.

Association up and none of it we've.

We've had several stakeholder meetings over the course of the quarter introduce them to the Btu philosophies and very positive outcomes.

I think everyone's aware this really more than anything this project relies on logistics for success and if you look at the timeline, we've been very publicly stating that yes. In fact, we will try and maintain the existing timeline, which has us producing first gold in Q1 2020 by with that.

The logistics the overall logistic has gone excellent. So far I think everyone's aware <unk> has their own logistics group procurement logistics group that has.

He has done this before we did it in far East Russia.

And so they jumped right in and really maintained the excellent progress that has already been done so far theres been a her program of <unk> 130 program, we brought in more than 60 loads.

Further for the summer season. This year all of the shipping and ordering has basically been completed now so things are on the both heading towards that.

Lay down area.

Barges, which were stranded last year by Sabina had been picked up and they've arrived at the marine Marine lay down area. So overall as of today.

We see that the procurement logistics remains on schedule.

As part of the next phase we needed to come out and finished the phase one construction of the cap that was completed at the end of July . So we currently have.

More than a 130 beds will be going up to over 200 here over the next little bit and that allows us really to bring our full construction team onsite.

So the construction team at least the first wave has arrived and just to remind everybody kind of what the scope is this year. This year. We've got it we've got kind of three major areas that we need to work on we've got the.

The mill of course, we've got the powerhouse and we've got a big workshop that we have to get done and really the scope for this year is to get the concrete and get the steel up and get it out whether it in so the concrete group has arrived on site. They are currently pouring concrete and I should add that originally we had inherited from Sabina kind of.

An EPC contract, which you know is not the typical <unk> model. The <unk> model is self perform.

We ended that relationship and we've now brought back the same group that really has made us successful for the last five projects as a write back on site and is in the process of pouring concrete so that is going very well.

And.

Actually so far that even the structural steel superintendents supervisors have arrived on site. They are busy sorting steel with the intent of getting everything put together kind of on the ground and waiting for the concrete to be towards so we can move forward very quickly on that.

On the underground side, just looking at it one from a from an operational perspective that goes very well.

We have so far.

We've come down a couple of benches already remember the first open pit is going to be used has to be mined out for our tailings location. So that remains on schedule. The underground we have developed more than 1300 meters and the decline more than a 128 meters in the VAT rate in more than 374 meters and the access ramp.

So basically everything remains at or ahead of schedule and what's probably more interest you. We talked about initially when <unk> acquired the project the potential to kind of front end front and some more ounces and so the engineering team here in Vancouver has been working with the site engineers.

And I am pretty happy to say without having the final detail details, but certainly we are looking at kind of in excess of 300000 ounces a year over the first five years of production, which I think is significantly more than what was in the feasibility.

Feasibility study.

Along with that we've of course taken a first cut at what kind of the operational cost would be and I think we've already said it at least several times in the market, but what we're really talking about it we're talking about $1000, an ounce plus or minus right in there.

Bring any sorry, and then the all in sustaining cost.

And.

Remembering that that is still preliminary but still some final work left to do.

<unk>.

Mike already talked about the costs that we are talking to right around $800 million Canadian plus an additional $90 million Canadian for Supercharging. The development of the underground and I guess, maybe I would end with it I believe everyone's aware that theres, an analyst trip coming up I think the 26th of September where it will be.

Introducing people to the work that we've done on site, but also the excellent management team that we have that we that we brought over from Sabine and also of course, our construction team.

And of course showing up.

Excellent progress and logistics that we've had to date.

Excellent.

We had board meetings over the last couple of days of course to review the quarter present results.

A lot of discretion or the presentation around <unk>.

<unk> of what we're doing there and I think I can say the board takes great comfort assigned to it.

They are the experience factor of achieve as bill touched on.

This is what we do we build our own mines and we have a history of doing your own merchandise schedule or even ahead.

Feel very comfortable where we are today as both.

As Bill has highlighted and you'll see that those of you who make the trip up there theres a lot of companies have struggled to diverse we're very aware of that and we believe that we can set a new standard here for.

How we do it.

Northern Russia, or northern Canada, So we refer to the boards feeling very comfortable with the work that's been done and that we inherited.

Situation group's ability to want to work at exploration feasibility.

Kicked off.

Structure made it difficult circumstances will see lots of companies to be able to arrange financing at <unk>.

So projects so as Bill said, we've combined our team was some very good people.

We're pleased with.

We stayed with the project Joe forces with Us So a lot of work's been done.

Okay.

With partners with landowners excellent relationships. If you look at the history of <unk> in particular that culture of purchases by some transparency around that.

World and the key is to deliver the promises you make so we're very excited about what we can do working with the <unk>.

So we've had some progress things like education health care and other areas of the doors close with our partners. So the other exciting thing.

So Peter knows this very well and so it would be the shareholders of this very well that Bruce and his group recorded a direct thing which is focusing on advancing the <unk> project and therefore, they were not going to spend an awful lot of money to exploration.

I would like to at the end of the day. They did the right thing for their shareholders.

Relatively modest exploration budget because of the fact that we're trying to build to finance ability to mine that was the focus of course, so we're pretty excited of exploration upside as I'm just going to pass over to Vic here quickly you could talk about how many rigs are outside of what our plan is for this year. We're exploring the Vancouver is a huge back river property as well as further looking at the <unk>.

It shows a goose and George to cost absorbed.

Thanks.

I guess straight out of the gate.

We were active.

The <unk> project.

Basically the focus there with.

I do too.

Waiting for space to open up for the exploration team down at the Goose project.

We've completed 12, both that we don't have.

<unk>.

Many of the results back yet, but thats that program has been.

It completed.

The focus now with the <unk>.

Excess ability of accommodation done at goose for the exploration team is goose itself to remind you we are.

Five excellent deposits there and these are all open.

There is a.

Immediate.

Potential that to actually extend these resources down plunge.

Looking forward to that as Mike pointed out.

We had $20 million for the balance of this yet.

In the budget, which is.

To put it into context.

Sabina was spending around 5 million Canadian.

Annual exploration.

20.

$527 million is five times that much in half the time. So there has been a very extensive.

Ramping up of exploration.

At the Bank group of project.

Five rigs planned for surface drilling at <unk>.

At Goose itself, and then as we get access to.

Underground drilling up possibilities.

Stepping in one or two rigs to that hopefully.

Early towards the end of this year or early next year.

So yes.

<unk>.

Very very active in terms of our exploration and ramping up very fast.

Thanks.

Thing is.

The early stage.

Great exploration team.

And therefore those are strict of exploration has been a great benefit from mix of the experience of those charges.

Operational team and all their knowledge to projects. So thats another area, where we're combining forces to aggressively pursue the exploration opportunities that we see there.

I think with that operator, we'll open it up.

For questions.

Thank you as a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.

Our first question comes from the line of Ralph <unk> from eight capital.

Thanks, operator and.

Good morning, good afternoon, everyone Clive I appreciate.

The clarification on the moly situation, but I wanted to come back and maybe ask a question sort of in broad terms.

When you have engaged in discussions and the solicit your feedback.

Where have you think that the concentration should be in terms of giving your input right where are there any specific issues that should take precedent and these discussions in your view.

Well I think the.

The discussions with the government ourselves and from what I've heard other fighting for the vessel companies successful or modeling is the factor of maintaining.

The importance of maintaining a attractive economic environment to go out and invest in value as we've done in the past. So thats, what we emphasize to cover that we always do this everywhere, we go and our conversations with government, which is find the balance there fair reasonable tax regime, which we feel we have.

Cost scenario.

Obviously for a public company.

Part of part of the incentive of what we do is profitable, but I think so our conversations with government that all governance is always strong but about what is what is fair and equitable and what maintains an attractive environment always have such a rich history of galvan acreage cost.

And the governments for.

<unk> been there a while.

Longer than us now of course, Barrick, but they've been very burdensome to walk out have been very good to work with they have changed the mining costs over time.

Two more reflect the reality of the kind of standards that we see worldwide. So I would say the 2012 code reflects vote will be considered viewers are fair and equitable environment for all stakeholders as I mention so that's kind of the focus when we talk to governments all around the world has quantified that balance with the people of violation of course benefit.

Production in the country of course are circled.

At the end of the day, what's the balance because they are not at this point time able to raise obviously billions of dollars as we have talked to some of the electrical so thats the balance.

We've had successful conversations in the history of valuable producer I believe we believe going forward the government.

As Pete I mean, the economy is driven in part to the pretty significant as typical production, but we believe they are going to see more successful development tour volume.

Gotcha, Thanks, I wanted to switch topics and come back to.

The construction update at Goose that was given last month and the move to.

The move to long haul.

Underground for <unk> wealth write down and I'm, just wondering does that move sort of stoping ore pass in all of this development as one of the critical path items. The reason I ask is that that particular deposit on the old so being a plan was at the front end of the mine plan and just wondering how sort of or sequencing by deposit happens now that youre sort of changing the mining method.

Yes, so youre actually like right in where we're at right now in the design. So I don't really want to comment I would make.

You say give us another quarterback give us net of course, it really kind of come back and answer that correctly. We are looking at the sequencing and really a lot of it revolves around the crown.

Pillar.

That needs to be mined out ahead of when you use that when you use the pet for tailings and so sequencing I don't think were ready to talk about exactly which one but certainly long haul stoping. It seems like the way to go for US that we can cut you add cost to be add to production profile.

Yes.

Yes.

Alright, Thanks, Bill Thanks Cliff.

Thanks, Sean.

Thank you one moment far next question.

Our next question comes from the line of <unk> Habib from Scotia Bank.

Thanks, operator.

Okay.

Sure.

<unk>.

Just wanted to say congrats on another strong quarter and great to see development of goose progressing well.

A couple of questions from me.

Number one just on the sustaining cost.

2023 seemed a bit light about high sustaining capex.

A lot of projects came in at the beginning of the year at the same time that should we expect sustaining capital to subside going to 2024 or should we maintain the same kind of spend going into the next year.

I think you can see it come I think we guided that our base when we put the budget you mean.

A chunk of sustaining capital some of its fleet, it's time to upgrade some of the fleet, but also deferred stripping was quite a big number as we put out in the budget. So there was significant stripping campaigns, both ethical at the new phases in.

And then maybe a broad Chicago.

So obviously like established Chicago, Thats winding down I guess.

Slide 25, so you Shouldnt expect the same level mine plans bump up and down a little bit, but generally speaking the last year and this year, we're happier stripping periods.

Got it got it and then thanks for the color on that and then just moving on to color then.

Particularly the koala underground.

And maybe this question is for Bill.

Believe youre looking to release, a new mine plan at the end of <unk>.

That includes the plan on the underground is there any update you can provide on what particular underground got looks like or how youre envisioning that.

Yes, I can provide an update kind of where we're at for sure. So you have to remember that for.

Cola underground development more than anything was to really get down to the deposit and drill it off to an indicated resource grade so.

Well, we do have what I would say a conceptual mine plan on that.

What we really did was prepare development and got approval from the government.

To get the development down the face I will tell you that that development because it was a rather new concept in Mali, where you did exploration from underground.

Took a little longer so we were about a quarter behind but all indications are burn cut is onsite right now they're doing the development for us is that they will catch up and we will see that in Q1 2025. So.

I guess the short answer is yes, it will be part of the update at the end of the year.

It will contain really the resource that you've already seen edit inferred level as it fits to the whole plan there won't be any update for that but it will be part of the year and update the comprehensive for Cola complex.

And basically I mean that I mean.

Is this.

Study kind of kind of see if this is feasible or is this kind of already given the green light we should start seeing some production from underground.

All underground.

Near term.

In 2020 to 25 is when you'll see production out of the underground.

Got it okay. Thanks for that.

And just moving on to the exploration program at Goose and George.

You guys mentioned drilling has commenced.

So when can we start expecting some results from the program and again is the priority.

All of this exploration program to kind of target near mine.

Exploration are you looking more to regionally as well.

The target at this stage, we started as I said earlier at towards four.

Basically logistical reasons.

Thats the reasonable work that's been done to date the focus now will be at goose.

And there is a mix there of both.

As I indicated earlier.

Looking at the extensions of the known deposits that's the focus this year.

This also targeting particularly the crown pillar area and below that.

You actually provide more detailed info drilling.

To some extent.

To allow that planning all of that.

Truly of the mining of that comm pillar within.

And within the timeframe so.

In terms of more regional work, both at Goose itself, and George will probably pick up on that.

Next year.

But certainly we've got a lot to do even on the extensions that we have of the existing deposits.

So I'd say the timing of the results.

I guess because of the location.

The turnaround is not great on the assay. So we're looking at four to six weeks at least.

So having just.

Started basically this week at Goose.

We're looking at.

Probably another two months.

Before we start seeing some of the results coming in.

Yes.

Sounds good and thanks for the color on that one as well.

And just shifting gears to the situation and reject now because obviously it doesn't have an exposure in Asia, but maybe can you provide any color or thoughts on azure and any kind of impact to your current portfolio.

Well, obviously don't always watching what's happening there.

People that arent for our circumstances.

And not only we are working with the current government.

But as popular the two a few years ago was a popular SKU there was dissatisfaction with widespread amongst the people would be covered up the day at the time and I think if you talk to our people at Valeant as many people as well as the fuel.

The government of Mali has done some good things for the people of Mali. So I think there is some stability there if they are heading into elections committed to elections next year. So sometime soon.

Misinterprets or Misreads was happening in each of these countries I'm not an expert but.

And I really won't comment much about that at the end of the day remember, we're hoping to see continued.

Political stability and we believe we will see got it in Bali expert on all the other countries western.

Okay. Thanks for that driving that that's it from me and thanks for taking my questions.

Thanks, guys.

Thank you.

One moment for our next question.

Our next question comes from the line of Don Demarco from National Bank financial.

Alright, Thank you operator, and good morning, good afternoon climbing team.

First question after the call on Bill you mentioned that there is more available to replace the 18000 ounces that would've otherwise been trucking.

With this replacement or be comparable in terms of.

Grade operating costs and Capex.

Because you aren't it would've been trucking.

The answer is yes.

The short answer is yes, it will most likely come from cardinal or some of these some of the.

Extensions up for call it so.

Is it being closer than coming from better it has to be at or better.

Overall cost that you would see a cardinal so you should model. It is the same.

Okay, and it seems like you've got some flexibility there with Cardinal Portland General.

If some of these trucking delays persist into Q1.

Also have the flexibility to replace what you might have otherwise trucked.

At a time.

Yes.

We are remember we've always talked about the kind of flexibility that's the beauty of having all those licenses in the setting thats getting set up the way we are to be able to mine for multiple pits, we still are projecting that.

In 2024, we will be trucking from the <unk> area, that's still in our life of mine, so if that changes, which I cant imagine at this time that it would I mean, when we were just there meeting with the government.

Now that now that they've kind of gone through the review of their mining code and are trying to sort out what they're going to do with it. The technical guys are saying, we need to start moving the stuff as board as fast as possible. So we absolutely see brings.

Bringing some regional stuff and in 2020 board of Golar mill.

Okay.

Well, what we're talking about.

For colon Maui, you've been there firsthand with these negotiations how would you describe the sort of the tenor of the meetings.

So you have a long standing positive relationship with the government there.

<unk>.

Are you seeing based on what.

Youre engagement there that should continue.

Absolutely I mean.

What we've been saying over the last quarter, and which I just validated being down there for two weeks was that.

The Mali government considers be to kind of the poster child of what they want and mining there. So.

But it didn't really hit on it but the reality is if some of this talk about changing the mining code is really bringing up some of the other people that are not under the 2012 code to kind of what we're doing right. So as far as we're concerned we continue to have a very good relationship and quite frankly, we expressed our concern.

One really the way that the discussion throughout the mining code have been happening and every one of the government officials I met was saying, we do not want to slow down mining in modeling it as a cornerstone for our economy.

Okay. That's good that's encouraging at goose.

Then shifting to goose.

Graduations and our progress so far and one of the items you guys did successfully completed the ice road without any incident.

And you actually create came up some creative ways to expedite development next year.

My question is have you looked at the cost and benefit of building a permanent road per site.

And if so what might that costs and benefits coming back could be.

Well I think that Sabina had looked at it there is never going to be at least in the short term or permanent I should never say never but the government and the key IAA up there do not want a permanent road into the site and so that would really require extensive extensive discussions what you can do is there is some.

Talk that you could actually put down some base.

And your license area to shorten what the ice road would look like and but I don't think youll ever see an all season road in there.

Okay great.

Well that's interesting, but it seems like that's good for that thanks for that color.

Last question on that body, Okay, we see Mack Daddy benefiting from lower fuel prices.

There could be a guidance cost reduction.

Are the fuel cost running below budget at the other mines.

Yes.

It's Mike.

As I mentioned they are there also.

Maybe they are lower than they are not as much below budget as Ms battery and remember in Namibia.

A window sulfur HMO, because malware and connected to the grid. So it's only really diesel costs that were exposed to fluctuations there and in Mali diesel is a bit lower but for this new blend of <unk> is a little higher so it kind of more neutral overall fuel costs. This value is the one that has impacted the most.

If you will right now.

Okay.

Okay, well that's all for me. Thanks, So thanks, a lot for that and good luck with Q3.

Thanks, Tom.

Thank you.

As a reminder to ask a question. Please press star one one on your telephone.

Wait for your name to be announced to withdraw your question. Please press star one one again.

Our next question comes from the line of Anita Soni from CIBC World markets.

Hi, Good morning, guys and thanks for taking my questions.

Just following on John's question about.

The fuel as I recall, maybe maybe I'm thinking of that incorrectly, but it wasn't to you but is there a little bit of a lag in terms of the sort of your inventories and the effect that you have in terms of fuel pricing. So.

Question really being what could we see.

More of an effect going into next year.

Fuel prices come down.

There's probably two or three parts to that historically, we had disclosed there was a lag in Mali, because the governments that fuel and what we've seen certainly initially.

Over the last couple of years was they were they were much slower to react to change the fuel price than the underlying market price was.

In the Philippines, you see that.

Correlation impacting much more quickly for example.

One the setting of the fuel price by the state and Molly does create a lag sometimes the other one to think about as you go forward that is not in operation of the goose.

A short shipping season, so youre going to be shipping fuel in and large increments over the summer and that fuel is going to be used over the course of the year. So youre not going to see the same direct correlation with the marketplace. There for goods jewelry, because it's going to be inventory to net used.

So as we get near to Goose coming into production, we'll be able to give you more guidance on that.

The quantity of fuel in the valuation of subscribe to it but.

Those are the two main timing differences I think you've got to think about government government pricing in Mali, and then the impact of Goose, having note the short shipping season, when it comes into operation.

And then just in terms of the sort of cadence for the rest of the year and quarters.

You're running I think at about 50% already.

Would you expect it to be slightly more.

More back half weighted it.

At these assets or is it relatively even like we could just continue to.

All data.

Consolidated was relatively even but we did disclose in our Dakota. They were they had more but as you get into both the Wassa underground and somewhat higher grade parts of the later, which go to open pit.

You get it was weighted like 60 40.

Second half to first half of the year, So youll see a slightly higher production with Jakarta, and because the officer for coal has a little tapering. So overall not really significant fluctuation on the total production from our sites.

You would expect all else being equal that the cost.

The opposite trends and then I guess.

Historically, that's correct and like I said.

We havent re guided in half two.

After the first half, but we were.

We'll come back and let you know where we think things are at just as we gauge fuel prices going through Q3.

Okay, and then lastly on the Goose project you mentioned that.

<unk> gotten rid of Bcf EPC contract and move to your own.

Owner operated fleet I guess.

Can you are there any costs associated with the termination of those contracts that we should be thinking about or is that already included within the budget.

Hi, Jeff.

Just announced a couple of weeks ago.

Yes, it sounds like a legal question.

But the cost the cost of termination was was nominal and you won't see an impact on the on the budget that was put out its factored in for sure yet greatly list.

Okay.

Well I look forward to going on I'm sorry.

Thank you at this time I would now like to turn the conference back over to Clive Johnson for closing remarks.

Okay. Thanks, operator, thanks for your.

Good question. So just a couple of things one thing I noticed that I forgot to mention a very important thing of that is that as part of our going forward and.

Backward, but we will be looking to of course maximize.

Employment and training, both feel and touch on that but thats, a very important part of as we look at all of the countries, where you have I think everyone's aware of it.

We are well known for having very high deployment from locals or the 98% range I think as a company. So here we are back in Canada, bringing the culture. We've been so successful around the world to vehicle culture back to Canada. We can do a lot of good work there in terms of working with the community and training and deployment.

Yes sure.

As you pointed out.

We have a very good relationship with the newer communities up there we have an agreement.

Assigned with them that was signed under Sabina, which does ask us to maximize kind of local hires and we've really taken that to heart.

They were well over.

I want to say, we're in double digits percentage already.

And hiring of the U S and I think that number is only going to only go up as we create job training programs and opportunities for them.

Yes.

Thanks, Rob we covered a lot of ground and thanks for your time and your questions.

Follow up questions.

I'll talk to Michael Macdonald.

But we'll get the right individuals who answer here for the question. So thanks for your time and let's remember this is a really good quarter.

We just put out are reflective of I believe.

Well this.

What we are doing this company and we're excited about we're excited about our growth prospects going forward.

So thank you very much.

Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

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Good day and thank you for standing by welcome to beat two golds second quarter earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

To ask a question during the session you will need to press star one one on your telephone you will then hear an automated message advising your hand as rates towards draw. Your question. Please press star one one again please.

Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Clive Johnson, President and CEO . Please go ahead.

Thank you operator policies on behalf of the.

The phone service.

Technical issues, but theres, so we're a little bit late getting going.

Welcome to the <unk>.

Conference call to discuss <unk>.

Yes, Sir.

Third quarter 2023 financial results.

Yet another very strong quarter.

The actual performance of our buying operating team.

And we're very pleased with the results.

So it makes us feel very comfortable we're on track to invest.

For our guidance for 2023 for the year annual guidance.

Passenger revenue Mike's sentiments showed our CFO who's going to walk you through the high level of what you probably already read which shows the details on the financial results that were going to have an update from the lydall focusing on the goose.

Project construction, the backburner and things are going very well.

Very well there.

We remain in an extremely strong financial position.

And the company that allows us to talk at a high level about that to look at funding goose.

Along with our industry leading dividend maintain.

Maintain a very strong cash position, which was going to come into production as bill will highlight.

In the first quarter of 2025.

To deal with.

An issue that's come up I guess since we put out a news release.

Molly.

That's just the conversations or other potential due 2023 binding coatings.

Put out at the end.

Our news release.

What we said at our business was up for all of my normal continues to be volumes on page five political at Cardinal actually page six from a cardinal pitch receipt of an exploitation license for about charcoal, which is one of the areas. We would like youre, hoping to start trucking worked out in the call. If you remember the Tacoma mill.

Yes.

Aires areas remains outstanding pending Finalization exploration license with Bam Tech on North terminal carrier remains outstanding pending Finalization of post new 20 chasing mining code.

He is a rally.

What we neglected to say that what all lease action from the SG&A, which is a more thorough analysis of the situation and it goes into more detail.

While we say it in the MD&A on page 11, as the company along with other mining companies in Bali are engaged in discussions with the state of knowledge to provide input into the post 2022 binding code.

Still at this point it remains a group proposal.

Any new mining code is not expected to impact the existing Tucano mine operations, which will continue to be governed by the existing mining convention Intraregional ended the 2012 mining code and the <unk>.

Perhaps of the new 2023, mud and close out the call it regional licenses.

Sure.

Sorry, I'll end it there so bottom line is what we're saying is that the.

Any proposed 2023.

Writing code.

So our understanding of recent consultation with government actually last week. The governor is confirming that there. This is not this code is not going to look back to previous existing code that would be unlawful. The 2012 Covid combining convention that covers that give us that dictates the terms the ownership <unk> 'twenty with ourselves and the government of Mali and also dictates your taxes.

All of the details of that Thats in the 12 to 12 quarter. We expect this applies to other gold miners and value as well. So we have solid outstanding codes and conventions from the past. So I just wanted to make sure people understand what we're talking about here. We built we remain convinced that the government of Mali, what's more gold mining in the country.

Once people like ourselves and for our investors to invest we have hopes of plans to expand in Bali. Additionally, by trucking origin Grant program that tackled with other areas Delta difficult belt feeds soft saprolite material into the mill.

We also have our milk.

Conceptually I've been talking about or looking at a study of the year that could involve building a second mill potentially if the economics work at the end of all the other factors come into bear with a new resource and the doors et cetera. So that's what we've been talking about potential expansion I think it's really important to point out that if you look at for coal as a great success.

Another critical piece of it.

Great successes and look for all stakeholders. So we invested over half a billion dollars U S. T bills for call. It a 100% it might be two gold the governor's, 20% so call it <unk>.

<unk> actually contributed $1 $2 billion of revenues to Molly Sims for Boulder mine started production.

As the.

And based on our calculation see people that valley has benefited the country probably is benefited by over 50% of the economic benefit of the mine. So we took all the risk upfront buildup.

They realized over 50% with the economic benefit that's been a great success. So we remain committed to looking at further opportunities to volume, where we believe that the government.

And from what we've heard remains committed to increasingly heading into countries. So when when the <unk> comes out we will have some share further consultation with government to talk about how we can work with our partner and the government to potentially expand production ethical. So I just wanted to re clarify that situation effectively we probably should have done a little better job of explaining it.

The news release that industries was about the financial results and an update on things. So at the end of the day I wanted to make sure we communicate with everyone that both the reality of the situation.

<unk>.

Recall that we expect will continue to be a great success for all stakeholders.

With that over the pass it on.

Tim It's Mike.

And our financials and Bill will talk about.

Actually one more point I'll make before I pass over.

Quoted out of context, a few weeks ago in an article that said that we were.

Aggressively pursuing more M&A.

I said at the end of the day, our strategy remains very much the same as it's been for a while here, which is focus on our development projects, which includes the goose.

Which you'll say bill will talk about also the potential.

Can you be committed in building roads et cetera for the expansion.

By tracking work, we're very convinced that we're very committed to a large exploration budget of the very large budget goes we're excited about the exploration upside there and the other projects around the world that we're exploring including around existing mines. We are not anxious we're not pursuing actively pursuing M&A at the moment, we will not take on another development project that we've never done that before we will not start to ease.

Now trying to go through those at the same time, so I just wanted to get around to record that we are always looking at what's out there in terms of are there avenues of production growth et cetera, we're not interested in.

Stopping it at all whether it be a problem by someone else or whether it would be a further another project to build we're busy we're very committed and we're very focused part of our success is our ability to focus on one project.

Right.

So with that I'll pass it over to Mike.

Hey, Thanks Clive.

Just touch briefly I think and there was also as clay mentioned I think that.

Good quarter from the operations.

And actually firstly on the revenue side, we sold our 240000 ounces at a realized price of 19.

<unk> hundred $69, an ounce that's more than $1 an ounce.

Higher than we were in the same period last year benefiting from a good gold price, it's obviously bouncing around a bit recently, but it's still well above 90%.

We look forward for the balance of the year as an estimate.

On the production side.

Again very much on budget. The total production from our three operating mines 246000 ounces and just almost exactly on budget and when you take in our share of calibers results, which is 24% share right now 263000 ounces right on budget overall solid lowers non theres there for COVID-19 level under for the period.

<unk> 8000 ounces below budget at 152000 ounces.

There was a delay.

Excavator, there and slightly lower production from phase six.

Through our ability to access the pit in the amount of production mining we can actually do there, but we believe will certainly head for coal is targeted for the year.

<unk> was a little over budget.

89000 ounces, so 5000 ounces higher than budget and they benefited from higher than budgeted mill feed grade and mill throughput and they know what Jakarta was a couple of thousand ounces over for just generally better or slightly better than budget on all factors. So overall right on budget.

263000 ounces in total production for the company.

Translating that on the cost side, so $636, an ounce overall, including ocular caliber $600 an ounce from all three mines.

So both of those numbers were $335 $40 lower than budget overall, we did see some offsetting factors.

<unk> was $538 and I'll say it was actually a little higher than budget, which is a function of that lower than budgeted gold production.

Effectively.

On the fuel side, although we saw some offsets so diesel was a large budget. But then we also saw egfr were switching to a new <unk> source, hoping to switch the newest <unk> source.

180, which.

It's a little greener I think for environmentally friendly so that's a little more expensive than what was budgeted.

Overall, lower cash costs, but higher capex.

Most exclusively based on timing, we were lower in the first quarter on a lot of Capex timing, we caught up in the second quarter, particularly on some of the mobile Pos across all the operations in some of the stripping costs. So overall level.

Higher than budget, but no change overall to our guidance for the year. So I'll just comment that that's so I think as we reiterated in our.

MD&A and news release, we expect that our guidance is unchanged for the year annual guidance, so, including our share of caliber somewhere between 1 billion and $1 60000 ounces are melting 80000 ounces for the year and on the cost side no change to the cash cost operating guidance for the all in sustaining cost guidance, we did mention and as I mentioned in the remarks.

We are benefiting from lower fuel cost as we go through both of them.

The first and second quarter. So we are watching that we'll watch that as we go through Q3, we still see the benefit of that rolling through his body and Namibia for the balance of that Q3, I think we will come back in and look at our guidance again, but right now we're maintaining our guidance as is.

Your comments on some of the other operational bill is going to talk to some of them.

Terms of Nikola regional development.

We've continued infrastructure development ever got the roads.

We did have 18000 ounces four fed tackle production.

And our guidance for the overall for coal complex for the Euro as management pipelines and we don't see that coming through now in 'twenty. Three we think that will roll into 'twenty four but we think we have enough optionality in the <unk>.

Availability of order <unk>.

<unk> generally that our guidance will remain unchanged, we will still meet guidance for the Cola complex.

On Goose Bill is going to talk to you we did put out a news release.

Updating our capex estimate in the period that came in very close to what we said as we went through the acquisition itself. So.

So 800 million Canadian for the for the core construction of the plant and then about $90 million net for accelerated underground development, where we see that we can actually we can dose more than was originally planned upfront and then we will benefit from that in the first few years of operation that goose, So still on track.

Breakthroughs on in Q1, 25, and our share of <unk> acquisition cost when you translate it into U S dollars after taking into account the spend that <unk> already had its just over 400000 U S. That's where you expected to incur to complete the project.

Chicago continues on and just a reminder, as well there is a <unk>.

<unk> shuffled around a 24 on open pit mining activity at <unk>.

<unk> 25, but then we will have ongoing production from Wassa underground as well as stockpile.

Processing that that should take us right through into early 2000 2031 somewhere around there.

Ground will actually the sales process is ongoing no updates to something with a present strategic investments you saw us look at that the most significant one in the current period and they put a great number today was snow line. So.

We invested $32 million, therefore, a nine 9% interest in <unk>.

That's kind of the.

Part of the company's ongoing strategy just like you saw us invest in Matador from nine 9% investment last year and then the other thing to highlight maybe on just projects that we did disclose $20 million more in exploration for the year were well over $80 million exploration budget for 2023 and that $20 million addition is exclusively for.

Back River Bank River District, so both goose, so more work there and the George prospects. There is also we're excited to get out there and see what else we can make for bank robbery.

Couple of other comments on the results, though earnings overall.

<unk>.

Attributable to shareholders $80 million or <unk>.

<unk> per share adjusted earnings were <unk> $86 million or <unk> per.

Sure.

And then on the.

On the cash flow side, we have good operating and overall cash flow quarter of $195 million.

Cash flow from operations of 16 SaaS per share. So we benefited like you said from a higher gold price production right on schedule.

Good good cash costs overall, and some working capital timing. So 195 billion is a good result on the financing side.

Couple of items to comment on there with the acquisition of the main item that impacted the certainly the balance sheet overall in the quarter was the acquisition of <unk> as we brought in those projects onto the balance sheet and in doing so we took the opportunity to extinguish.

Some of the existing.

Financial obligations that that Sabine it entered into as part of their financing package. So in total we spent $111 million, which included extinguishing the off take agreement that was there with a private equity firm and also to extinguish one third of the existing Gulfstream with Wheaton precious metals, and we did that because we.

Effectively.

Royalties and we obviously really like.

Prospectively at Goose them backward, but generally so it makes us to try and take those out upfront. So we took that opportunity and then on the dividend side, we've maintained our <unk> <unk> per share for the quarter. The dividend is higher this quarter overall in growth terms because of that extra 200 million plus shares that were issued as part of the Sabine acquisition.

It's our goal to maintain that dividend going forward that level of dividend going forward as well as financing or capital obligations that we have for <unk>.

This development prospects globally, with most significantly that goose prospect or.

This project is currently underway.

We did finish the period with the flex that great financial shape over half a billion dollars.

And the bank.

Still have an undrawn.

Our revolving credit facility was 600 million, we added National Bank in for another 190 to now over $700 million available on the line Undrawn.

Half a billion dollars in the bank at the end of the quarter, so $1 two and sort of.

Available right on hand liquidity and as we look forward.

So, bringing goose online as we go through.

I think what we see is we were very comfortable in our ability to finance goose keep.

Keep paying the dividend as we see it and then also evaluating sort of the other capital needs that we have a ground under group. So I think we're in good shape financially there and.

And with that I think the only other thing I'd add we'd like to give you an update on cash taxes. Each period for your model. So we did update the MD&A. There is an increased cash taxes that just over.

$250 million and Thats, because we budgeted at $2300 goal and now we're re forecast we've come out through the first half of the year over 1200, and we're forecasting $18 50, so so our new cash tax.

It is approximately $250 million just for your models.

And with that I'll hand, it back to claim.

Thanks, Mike.

Of course, we were building.

A high level update on the exciting progress we're making.

Goose construction sure. Thanks Scott.

I guess I wanted to start out with talking a little bit about it.

Really the key things for this project number one obviously.

We continue to maintain excellent relationships with the <unk>.

<unk> Association.

We've had several stakeholder meetings over the course of the quarter introduce them to the Btu philosophies and very positive outcomes. Additionally, I think everyone's aware this really more than anything this project relies on logistics for success and if you look at the timeline, we've been very publicly stating that yes in fact, we.

We'll try and maintain the existing timeline, which has us producing first gold in Q1 2020 by with that.

The logistics the overall logistic has gone excellent. So far I think everyone's aware <unk> has their own logistics group procurement logistics group that has done this before we did it in far East Russia.

And so they jumped right in and really maintained the.

Excellent progress that has already been done so far theres been a her program of <unk> 130 program, we brought in more than 60 loads.

For the summer season. This year all of the shipping and ordering has basically been completed now so things are on the both heading towards the midstream marine lay down area.

Barges, which were stranded last year by Sabina had been picked up and they've arrived at the marine Marine lay down area. So overall as of today.

We see that the.

Logistics remains on schedule.

As part of the next phase we needed to come out and finished the phase one construction of the cap that was completed at the end of July . So we currently have.

More than 130 beds will be going up to over 200 here over the next little bit and that allows us really to bring our full construction team on site.

So the construction team at least the first wave has arrived and just to remind everybody kind of what the scope is this year. This year. We've got it we've got kind of three major areas that we need to work on we've got the.

The mill of course, we got the powerhouse and we've got a big workshop that we have to get done and really the scope for this year is to get the concrete and steel up and get it all whether it in so the concrete group has arrived on site. They are currently pouring concrete and I should add that originally we had inherited from Sabina kind of.

An EPC contract, which you know is not the typical <unk> model. The <unk> model is self perform.

We ended that relationship and we've now brought back the same group that really has made us successful for the last five projects as a write back on site and is in the process of pouring concrete so that is going very well.

And.

Actually so far that even the structural steel superintendents and supervisors have arrived on site. They are busy sorting steel with the intent of getting everything put together you can't on the ground and waiting for the concrete to be towards so we can move forward very quickly on that.

On the underground side, just looking at it one from a from an operational perspective that goes very well.

We have so far.

We've come down a couple of benches already remember the first open pit is going to be used has to be mined out for our tailings location. So that remains on schedule. The underground we've developed more than 1300 meters and the decline more than a 128 meters in the VAT rate in more than 374 meters and the access ramp.

Basically everything remains at or ahead of schedule and what's probably more interest you. We talked about initially when <unk> acquired the project the potential to kind of front end front and some more ounces and so the engineering team here in Vancouver has been working with the site engineers.

And I am pretty happy to say without having the final detail details that certainly we are looking at kind of an in excess of 300000 ounces year over the first five years of production, which I think is significantly more than what was in the feasibility study.

Along with that we've of course taken a first cut at what kind of the operational costs.

We've already said it.

<unk> several times in the market, but what we're really talking about it we're talking about $1000, an ounce plus minus right in there.

Membrane sorry, that's yes.

All in sustaining costs.

And <unk>.

Remembering that that is still preliminary but still some final work left to do.

Mike already talked about the costs that we are talking to.

Right around $800 million Canadian plus an additional $90 million Canadian for Supercharging. The development of the underground and I guess, maybe I would end with it I believe everyone's aware that theres, an analyst trip coming up I think it is the 26th of September where we will be introducing people to the work that we've done on site, but also the excellent.

Management team that we have.

That we brought all of our problems have been and also of course, our construction team.

And of course, showing our excellent progress and logistics that we've had to date.

Thanks Bill.

We had board meetings over the last couple of days of course to review the quarter present results.

A lot of discussion or in the presentation around.

Goose of what we're doing there and I think I can say the board takes great comfort assigned to in the in what we're doing there and the experience factor <unk> achieve as bill touched on.

This is what we do we build our own mines and we have a history of doing your own merchandise schedule or even ahead and we feel very comfortable where we are today as bill. So as bill has highlighted and you'll see that those of you who make the trip up there theres a lot of companies have struggled with the doors, we're very aware about.

We believe that we can set a new standard year for.

How will we do it whether it's northern Russia, or northern Canada. So we refer to the boards feeling very comfortable with the work that's been done and that we did inherit a good.

Good situation for us would be that it will work and work and exploration feasibility.

<unk> kicked off.

Construction data difficult circumstances, a single asset company to be to be able to arrange financing and advanced the project. So as Bill said, we've combined our team with some very good people. So we know that we're pleased with.

We stayed with the project Joe forces with Us So a lot of work's been done.

Okay.

With partners <unk> XR relationships, if you look at the history of future goal could be taken that cultural fit.

With respect to transparency around the world and the key is to deliver the promises you make so we're very excited about what we can do working with a K a.

So we've had some progress things like education health care and other areas in the doors close with our partners. So the other exciting thing.

So Peter knows this very well and so this would be the shareholders know this very well that.

Bruce as group Macleod to direct English is focusing on advancing this project. Therefore, they were not going to spend an awful lot of money to exploration globally.

Like to avail of the day they did the right thing for the shareholders. So they are relatively modest exploration budget because of the fact that we're trying to build to finance building that.

That was the focus of course, so we're very excited about the exploration upside as I'm just going to pass over to Vic here quickly to talk about how many rigs we're excited with our plans for this year. They are exploring the Vancouver is a huge black river property as well as further looking at the extensions of Goose and George to cost absorbed EBIT.

Thanks Claude.

Straight out of the gate.

We're active.

George project.

Basically the focus there with <unk>.

You too.

Waging for space to open up for the exploration team down at the Goose project.

We've completed 12 holes that we then have a <unk>.

Many of the results back yet, but thats that program has been.

Completed.

The focus now with the.

Accessibility of accommodation down at Goose for the exploration team is goose itself to remind you we have five.

Excellent deposits there and these are all up and down.

There's that.

Immediate.

Potential there to actually extend these resources.

Looking forward to that as Mike pointed out.

We had $20 million for the balance of this yet.

In the budget, which is to.

Put it into context.

Sabina was spending around $5 million Canadian on annual exploration.

$527 million is five times that much in half the time. So there has been a very extensive.

Ramping up of exploration.

At the at the back group of project.

Five rigs planned for surface drilling at <unk>.

At Goose itself, and then as we get access to.

Underground drilling up possibilities.

Trapping in one or two rigs to that hopefully.

Early towards the end of this year or early next year.

So yes.

<unk>.

Very very active in terms of our exploration and ramping up very fast.

Thanks, Ed.

Thing is early.

Early stage.

Great exploration team Speedo and therefore those are strict exploration has been a great week.

From a mix of the experience of those can be the Charleston.

<unk> team and all their knowledge to projects. So thats another area, where we're combining forces to aggressively pursue the exploration opportunities that we see there.

I think with that operator, we'll open it up.

For questions.

Thank you.

As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.

Our first question comes from the line of Ralph <unk> from eight capital.

Thanks, operator.

Good morning, good afternoon, everyone Clive I appreciate.

The clarification on the moly situation, but I want to come back and maybe ask a question sort of in broad terms.

When you have engaged in discussions and they solicit your feedback.

Where have you think that the concentration should be in terms of given your input right where are there any specific issues that should take precedent and these discussions in your view.

Well I think.

The discussions with the government ourselves and from what I've heard other fighting for investment like of this successful and modeling is the factor of maintaining.

The importance of maintaining an attractive economic environment to go out and invest in hidden valley as we've done in the past so thats, what we emphasize to cover that we always do to separate when we go in our conversations with government, which despite the balance there fair reasonable tax regime, which we feel we have.

I had a call scenario and.

Obviously for a public company.

Part of part of the incentive and what we do is profitable, but I think so our conversations with government at all governance is always strong but about what.

And what is fair and equitable and what <unk>.

Maintains an attractive environment always have such a rich history of <unk>.

The governance for brambles.

<unk> been there a while.

A lot longer than us now of course, Eric but they've been very bullish in the market have been very good to work with they have changed the mining costs over time.

To reflect the reality of the kind of standards that we see worldwide. So I would say the 2012 code reflects what we consider to be very short term.

For an equitable environment for all stakeholders I imagine so that's kind of the focus when we talk to governments around the world is satisfied that Dallas was a piece of the validation of course benefit from full production in the country of course the circle at the end of the day, what's the balance because they are not at this point time able to raise the hardness of millions of dollars as we have done to build something like for coal. So that's <unk>.

We've had successful conversations in the history of valleys full producer I believe we believe going forward the government.

As.

The economy is terrific to see.

Typical production, but we believe they are going to see more successful development of core volume.

Gotcha. Thanks.

I want to switch topics and come back to the construction.

Update at Goose that was given last month and the move to.

The move to long haul.

Underground for arm wealth write down and I'm, just wondering does that move sort of stoping ore pass in all of this development.

One of the critical path items. The reason I ask is that that particular deposit the oleds have been our plan was at the front end of the mine plan and just wondering how sort of or sequencing by deposit happens now that youre sort of changing the mining method.

Yes, so youre actually like right in where we're at right now in the design. So I don't really want to comment I would maybe say give us another quarterback give us another quarter to really kind of come back and answer that correctly. We are looking at the sequencing and really a lot of it revolves around the crown pillar.

That needs to be mined out ahead of when you use them. When you use the pet for tailings and so sequencing I don't think were ready to talk about exactly which one but certainly long haul stoping. It seems like the way to go for us.

Got you.

We add to production profile.

Yes.

Yes.

Alright, Thanks, Bill Thanks Cliff.

Thanks, Sean.

One moment for next question.

Our next question comes from the line of <unk> Habib from Scotia Bank.

Thank you operator.

Yes.

Okay.

<unk>.

Just wanted to say congrats on another strong quarter and great to see development of goose progressing well.

A couple of questions from me.

Number one just on <unk>.

Sustaining cost.

2023 seemed a bit light about high sustaining capex, yes.

A lot of projects came in at the beginning of the year at the same time that should we expect sustaining capital to subside going into 2024 or should we maintain the same kind of spend going into the next year.

I think you can see it come I think we guided that our base when we put the budget out.

Junk of sustaining capital some of its fleet, it's time to upgrade some of the fleet, but also deferred stripping was quite a big number as we put out in the budget. So there was significant stripping campaigns, both for Poland, the new phases in.

And then maybe it grows Dakota, so obviously like established Chicago Thats winding down I guess.

Slide 25, so you Shouldnt expect the same level.

Implants bump up and down a little bit, but generally speaking the last year and this year, we're happier stripping periods.

Got it got it and then thanks for the color on that and then just moving onto cooler than.

Specifically the koala underground.

And maybe this question is for Bill I believe you're looking to release, a new mine plan at the end of <unk>.

That includes the plan on the underground is there any update you can provide on what particular underground kind of looks like or how youre envisioning that.

Yeah, well I can provide an update kind of where we're at for sure. So you have to remember that.

Cola underground development more than anything was to really get down to the deposit and drill it off to an indicated resource right. So.

While we do have what I would say a conceptual mine plan on that.

What we really did was prepare development and got approval from the government to get the development down the face I will tell you that that development because it was a rather new concept in Mali, where you did exploration from underground.

Took a little longer so we were about a quarter behind but all indications are burn cut is onsite right now they are doing the development for us is that they will catch up and we will see that in Q1 2025. So.

I guess the short answer is yes, it will be part of the update at the end of the year.

It will contain really the resource that you've already seen added inferred level as it fits to the whole plan there won't be any update for that but it will be part of the year and update the comprehensive for Cola complex.

And basically I mean that I mean.

Is this.

Study.

See if this is feasible or is this kind of already given the green light and we should start seeing some production from underground.

Underground.

Okay.

In 2000, and 2025 is when you'll see production out of the underground.

Got it okay. Thanks for that.

And just moving on to the exploration program at Goose and George.

You guys mentioned drilling has commenced.

So when can we start expecting some results from the program and again is the priority.

All of this exploration program to kind of target.

Nine.

Exploration are you looking more to regionally as well.

Yeah.

The target at this stage, we started as I said earlier at towards four.

Good.

Basically logistical reasons. So that's that's the regional work that's been done to date the focus now will be at goose.

And there is a mix there of both.

As I indicated earlier.

Looking at the extensions of the known deposits that's the focus this year.

This also targeting particularly the crown pillar area and below that.

Do you actually provide more detailed infill drilling.

To some extent.

To allow that planning.

Julie.

The mining of that pillar within.

And within the timeframe so.

In terms of more regional work, both at Goose itself, and George will probably pick up on that.

Next year.

But certainly we've got a lot to do even on the extensions that we have of the existing deposits.

Results.

The timing of the results.

I guess because of the location.

The turnaround is not great on the assay. So we're looking at four to six weeks at least.

So having just.

Started basically this week at Goose.

We're looking at.

Probably another two months at least.

Before we start seeing some of the results coming in.

Properties.

Yeah.

Sounds good and thanks for the color on that one as well.

And just shifting gears to the situation and reject now because obviously it doesn't have any exposure in Asia, but maybe can you provide any color or thoughts on <unk> and any kind of impact to your portfolio.

Well, obviously always watching what's happening there.

For our suite of tests in the Valley, we are working with the current government.

Local government is popular the two a few years ago was a popular SKU there was dissatisfaction with widespread amongst the people would be covered up the day at the time and I think if you talk to our people at Valeant as many people knowledge the fuel itself.

The government of Mali has done some good things for the people of Mali. So I think there is some stability there if they are heading into elections could be the two elections next year. So sometimes.

Misinterprets or Misreads was happening in each of these countries I'm not an expert.

And I really won't comment much about that at the end of the day. We were we are hoping to see continued.

Political stability and we believe we will see got it.

Although an expert on all the other countries.

Okay. Thanks for that drag than that that's it from me and thanks for taking my questions.

Thanks, guys.

Thank you.

One moment for our next question.

Our next question comes from the line of Don Demarco from National Bank financial.

Alright, Thank you operator, and good morning, good afternoon climbing team.

First question after the call on Bill you mentioned that there is more available can replace the 18000 ounces that would've otherwise can trucking.

With this replacement or be comparable in terms of.

Grade operating costs and Capex.

Could you or that would have been trucking.

The answer is yes.

The short answer is yes, it will most likely come from cardinal or some of these some of the.

Extensions of Nikola so with it being closer than coming from <unk>, it has to be at or better.

Overall cost that you would see a cardinal so you should model. It is the same.

Okay, and it seems like you've got some flexibility there with cardinal coal in general.

If some of these trucking delays persist into Q1.

Also have the flexibility to replace what you might've otherwise tracked.

At a time.

Yes, I mean, we are remember we've always talked about the kind of flexibility. That's the beauty of having all those licenses are set and that's getting set up the way we are to be able to mine for multiple pits, we still are projecting that.

In 2024, we will be trucking from the <unk> area, that's still in our life of mine, so if that changes, which I cant imagine at this time that it would I mean.

We were just there meeting with the government.

Now that now that they've kind of gone through the review of their mining code and are trying to sort out what they're going to do with it. The technical guys are saying, we need to start moving the stuff as board as fast as possible. So we absolutely see bring.

Bringing some regional stuff and in 2020 board of Golar mill.

Okay and.

What we're talking about.

For colon nally, you've been there firsthand with these negotiations how would you describe the sort of the tenor of the meetings.

I mean, obviously you have a longstanding positive relationship with the government there.

Are you seeing based on what.

Youre engagement there that should continue.

Absolutely I mean, what we've been saying over the last quarter, and which I just validated being down there for two weeks was that.

The Mali government considers <unk> kind of the poster child of what they want and mining there. So.

I didn't really hit on it but the reality is some of this talk about changing the mining code is really bringing up some of the other people that are not under the 2012 code to kind of what we're doing right. So as far as we're concerned we continue to have a very good relationship in and quite frankly, we expressed our concern.

One really the way that the discussion throughout the mining code have been happening and every one of the government officials I met was saying, we do not want to slow down mining in modeling it as a cornerstone for our economy.

Okay. That's good that's encouraging a goose.

Then shifting to goose.

Graduations and the progress so far and one of the items you guys did successfully completed the ice road without any incident.

And you actually create came up some creative ways to expedite development next year.

My question is have you looked at the cost and benefit of building a permanent road right.

And if so what might that costs and benefits coming back.

Well I think that Sabina had looked at it there's never going to be at least in the short term or permanent I should never say never but the government and the Kyrie up there do not want a permanent road into the site and so that would really require extensive extensive discussions what you can do is there is some.

Talk that you could actually put down some base.

And your license area to shorten what the ice road would look like.

But I don't think you'll ever see an all season road in there.

Okay great.

Well that's interesting, but it seems like that's good for that thanks for that color.

Last question on that body, Okay, we see Mack Daddy benefiting from lower fuel prices.

There could be a guidance cost reduction or.

Are the fuel cost running below budget at the other mines.

Yes.

Yes.

I mentioned they are there also.

They are lower than they are not as much below budget isn't as bad even remember Namibia.

No sulfur HMO because malware is connected to the grid. So it's only really diesel cost that were exposed to fluctuations there and in Mali diesel is a bit lower but a trip all of this new blend of HFF is a little higher so it kind of more neutral overall fuel costs with values. The one that has impacted the most by fuel right now.

<unk>.

Okay.

Okay, well that's all for me. Thanks, a lot. Thanks, a lot for that and good luck with Q3.

Excellent.

Thank you.

As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced towards draw. Your question. Please press star one one again.

Our next question comes from the line of Anita Soni from CIBC World markets.

Hi, Good morning, guys and thanks for taking my questions.

And just following on Don's question about.

The fuel as I recall, and maybe maybe I'm thinking of that incorrectly, but it wasn't to you but is there a little bit of a lag in terms of the sort of your inventories and the effect that you have in terms of fuel pricing. So the question really being what could we see more like them.

More of an effect going into next year.

Fuel prices come down.

There's probably two or three parts to that historically, we had disclosed there was a lagging in Mali, because the governments that fuel and what we'd seen certainly initially.

Over the last couple of years, because they were they were much slower to react to change the fuel price than the underlying market price was.

In the Philippines, you see that.

Correlation impacted much more quickly for example, so.

So thats one the setting of the fuel price by the state and Molly does create a lag sometimes there.

Other ones to think about as you go forward, it's not an operational but goose. There's there's a there's a short shipping season, so youre going to be shipping fuel and in large increments over the summer and that fuel is going to be used over the course of the year. So youre not going to see the same direct correlation with the market price there for goose Joy, because it's going to.

Inventory and then used and so as we get near to Goose coming into production, we will be able to give you more guidance on that.

So you know the quantity of fuel in the valuation of subscribe to it but.

Those are the two main timing differences I think you've got to think about government government pricing in Mali, and then the impact of Goose, having note the short shipping season, when it comes into operation.

Okay, and then just in terms of the sort of cadence for the rest of the year and quarters.

You're running I think at about 50% already.

What do you expect it to be slightly.

More back half weighted it.

At these assets or was it relatively even like we could just continue to.

All data.

Consolidated was relatively even but we did disclose in our Dakota. They were they had more but as you get into both the wall Shack underground and somewhat higher grade parts of the later, which go to open pit.

You get it was weighted like 60 40.

Second half to first half of the year, So youll see slightly higher production with Jakarta, and Pickles, The officer and Mr. Cola has a little tapering. So overall not really significant fluctuation on the total production from our site and you would expect all else being equal that the costs have been sort of follow the opposite trends then I guess.

Historically, that's correct and like I said.

We haven't re guy who have too.

After the first half, but we will come back and let you know where we think things are at just as we gauge fuel prices going through Q3.

Okay, and then lastly on the Goose project you mentioned that.

You've gotten rid of Bcf EPC contract and move to your own.

Owner operated nothing fleet I guess.

Can you are there any costs associated with terminations of those contracts that we should be thinking about or is that already included within my budget.

Hi, Jeff.

Just announced a couple of weeks ago.

Yes, it sounds like the legal question.

But the cost the cost the termination was was nominal and you won't see an impact on the on the budget that was put out its factored in for sure again greatly list.

Okay.

Well I look forward to going on I'm sorry.

Thank you at this time I would now like to turn the conference back over to Clive Johnson for closing remarks.

Okay. Thanks, operator thanks.

Good question. So just a couple of things one thing I noticed that I forgot to mention a very important thing of that is that as part of our going forward. It goosen backward, but we will be looking to of course maximize.

Employment and training, both feel and touch on that but that's a very important part of as we look at all of the countries, where you have I think everyone's aware of it we are well known for revenue very high deployment for vocals of the 98% range I think as a company. So here we are back again, but bringing the culture. We've been so successful around the world to reach a global culture back to Canada.

We can do a lot of good work there in terms of working with the community and training and employment.

Sure Clive.

As you pointed out.

We have a very good relationship with the Inuit communities up there we have an agreement.

Signed with them. It was signed under Sabina, which does ask us to maximize kind of local hires and we've really taken that to heart.

Think with that we're well over.

I want to say, we're in double digits percentage already.

And hiring of the U S and I think that number is going to only go up as we create job training programs and opportunities for them.

Yes.

Thanks, Bob we covered a lot of ground and thanks for your time any questions.

Follow up questions.

I'll talk to Michael Macdonald.

We will get the right individual to answer further questions. So thanks for your time and let's remember this is a really good quarter that we just we just put out are reflective of I believe.

Well.

What we're doing as a company and that we're excited about we're excited but our growth prospects going forward.

So thank you very much.

Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.