Q2 2023 Equinox Gold Corp Earnings Call

That's off the top.

Thank you for standing by this is the conference operator, welcome to Equinox, Gold's second quarter 2023 results and corporate update.

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I would now like to turn the conference over to Berlin Bailey, Vice President of Investor Relations for Equinox School. Please go ahead.

Thank you Julian and thank you everybody for joining us. This morning, we will of course see making a number of forward looking statements. Today. So please do visit our continuous disclosure documents on our website on SEDAR and Edgar I'd now like to turn the call over to our CEO and President Greg Smith.

Thanks, Carolyn and good morning, and thanks, everyone for joining us today, especially at this very early hour on the West coast here.

With me is our C O Doug ready, our CFO , Peter Hardie, our EVP of exploration, Scott Heffernan, and our VP of Investor Relations, Robyn Bailey, who you just heard from.

As a quick introduction to those new to the company Equinox is a diversified Americas focused gold producer, we have seven producing mines across Brazil, Mexico, and the United States and we also have several growth projects, including our large scale greenstone gold mine in Ontario, which is in construction now with our 40% joint venture partner Orion Mine finance.

But today, we're discussing our 2023 second quarter financial and operating results.

But before we jump into those results I just wanted to acknowledge the fatality at our Santa lose mine in June .

This was a tragic incident and we extend our deepest sympathies to our employee family friends and coworkers we.

We had a one week site wide suspension of operations at San Luis to facilitate the investigation and to refresh safety training.

I'll now start with a broad overview for the quarter and then I'll turn it over to Carl to Pete and Doug for more details.

We had a solid quarter with sales of just over 138000 ounces at a cash cost per ounce sold of $13 61, and an all in sustaining cost per ounce sold of 15 O. Two.

For the first six months of the year, we sold 261000 ounces at cash cost of $13 54 per ounce and all in sustaining costs of $15 76 per ounce.

This reflects record sales for the company for the first six months of the year and we remain on track to meet our 2023 production and cost guidance.

On Tuesday. This week, we issued a press release with a full greenstone update for those that didn't see it the team at greenstone has done a great job of continuing to advance the mine on time and on budget for first gold pour in the first half of 2024.

As of July 21st we were 85% complete overall at greenstone, there's loads of pictures on the website and you can really see how far the projects come in in advance over the course of this year and Doug will have more to say on greenstone in a few minutes.

During the quarter. We also continued to progress the feasibility study on the addition of an underground mine at or Zona and we're going to continue to conduct some additional work, including trade off studies on throughput from the underground mine. This means we'll complete the study next year. This timing also allows us to proceed with construction of a portal and a decline which we plan to include in our cap.

Budget for 2024, our work so far shows excellent potential for a long life underground mine in Arizona. So we're keeping our foot on the gas in terms of development, while we progressed the feasibility study and Doug will also comment more on this.

We finished the quarter with unrestricted cash balance of $174 million plus approximately 170 million available from our credit facility for a total of over $300 million in available cash liquidity at quarter end.

Cash flow from operations. This leaves us well funded through the completion of construction at greenstone.

We also published our third comprehensive ESG report in May and just recently in July we published our first water stewardship report. These reports summarize our performance during 2022, our targets for 2023, and our long term strategy across a range of ESG initiatives. They are both available on our website along with our climb.

But action report and I encourage everyone on this call to check them out.

So with that I'd like to hand, the call over to Peter Hardie to run through our financial results.

Greg We're now on slide six in the presentation.

From a gold sales and revenue perspective, we had our best first half first half of the year in the company's history during the quarter.

For the 138000 ounces, we sold we received an average realized price of 1962 per ounce.

That's 1931 year to date generating $270 million in revenue of 506 million year to date, we sold 15000 warehouses in Q2 as compared to Q1 of this year and about 18000 more ounces than we did.

For the 120000 ounces that we sold in Q2 last year.

Our cash cost per ounce a $30 61.

For Q2 is similar to that of Q1 of this year and down from Q2 of last year of 14 82, our all in sustaining cost per ounce of Q2. This year of $15. Two was down from Q1 to $15 76, and also down from Q2 last year's last year's $16 57.

As to forward views on input costs unit prices are now starting to see decreases, particularly diesel and cyanide in Brazil and the U S.

The unit cost decreases in Brazil are somewhat offset by the strength of the real against the U S. Dollar.

Our EBITDA in Q2, 2023 was $64 million or $71 million on an adjusted basis. We had net income of $5 million for basic and fully diluted earnings per share of <unk> <unk>.

On an adjusted basis, we had a net loss of $6 million or two cents a share.

Cash flow from operations before changes in working capital was $81 million or 26 cents a share.

Included in that cash flow from operations is the receipt of an additional $10 million from the gold prepay arrangement. If you back out those funds, we generated $71 million in cash flow from operations are about two cents a share.

In terms of liquidity and capital position, we ended the quarter with $174 million of unrestricted cash and $127 million available to draw on our credit facility, giving us total liquidity of a little over 300 million, we did draw the remainder of the revolver on August one.

Further to the gold sale prepaid transactions entered in Q1 as I mentioned, we did enter into an additional gold sale prepay on June 23rd.

Whereby.

With one of our well one of the members of the syndicate that provided the prepay we received $10 million in exchange for delivering to the lender 263 ounces of gold per months from October 24th of July 26 for a total of just under 6000 ounces.

Those terms reflect and that delivery period reflects that of the prepay that we did earlier in the year.

Concurrent with the execution of the gold prepay sale transaction in June .

We entered into this financial swap agreements that fixed the gold price relating to that $10 million at 20 109 per ounce.

Net debt increased from $113 million at the end of Q1 to 548, let's start pardon me going from 548 million to $661 million at the end of Q2 on.

On slide seven what does that mean for greenstone.

Based on progress to date, we believe our share of the remaining construction budget is about $170 million and we expect to fund that through our cash that we had at the end of the quarter, our operating cash flow in the final draw on our revolving credit facility. Additionally, we still have the $100 million accordion feature in place.

And with those sorts of liquidity as Greg mentioned, we believe we are well funded to complete greenstone construction.

With that I will turn the time over for Doug to review the operations.

Thanks, Pete So as mentioned earlier, we had a.

Very good first half of the year and we are looking at pushing hard to deliver strong production in the second half we've noted before that about 55% of <unk>.

Production. This year is in the second half of the year.

Mesquite the brownie pit provided the majority of new or about 90% of the ore going to the leach pad and re leaching on portions of the pad also contributed significantly to the Q2 gold production.

Mining costs at mesquite benefited from a drop in diesel prices and just for example, the current price is about 30% lower than it was in Q2 last year.

Process costs were reduced through reduction of cyanide in line usage.

Don't see that staying the same in the second half because we plan on stacking more in the second half. So the overall costs will go up.

On cyanide in line.

At Castle Mountain throughput has increased 40% since the start of the year and the crusher and the Crusher run times up by about 30%. We continue with modifications to the crusher setup and we're planning for.

For those additional modifications to be implemented in Q3.

And Las Fellows productivity improvements were seen in both open pit and underground.

Open pit has about 15% higher productivity, along with loading improvements and an increase in our effective operating hours for underground is about 23% increase in the ore tonnes being mined.

So, although we but although we have more tonnes going to the leach pad. We did have some challenges on the leach pad that we've been addressing.

These include some higher copper ore coming from the Guadalupe open pit.

I do note that this is only a portion of the ore and it represents about 12% of the tonnes being stacked for the remainder of the year.

We also had issues with solution solution management related to some broken pipes in one area of the pad those have since been repaired.

And the the pregnant solution in that area, where the breakage occurred needs to be drained that impacts about 8000 ounces that is slow in coming out of the pet it will come out it just going to be slower get coming out then than originally anticipated.

And we also had one portion of the Leach pad, which had to be turned again.

<unk> again after a carbonate precipitation occurred which was hindered recovery that impacts about 4000 ounces.

Again, those ounces will come out in the second half of the year.

Arizona.

In addition to the current mining contractor, we also mobilized a second contract with the articulated dump trucks.

They'll be in for most of the rest of 2023. They came in during the rainy season. The rainy season is over now we're putting a big push on the mining and to establish a larger stockpile in advance of the next rainy season.

At present, we.

Were currently mining mostly from open pits, while the underground also catches up on development and we'll work on bringing additional stopes into production.

Drilling continues on the reserve replacement program at present, it's been successful every year and we continue doing that too successful in replacing reserves every year.

At RDM, we had good performance from the owner operated fleet. The fleet is a combination of our own trucks, plus 15 60 ton rental trucks.

The increase in mining of higher grade and sit you orders brought that production up significantly in the quarter and the mill feed as I'll note. The mill feed as also being augmented with low grade stockpiles. If there is any availability in the mill.

At San to lose on the team continues to gradually bring recovery up in the plant had an average overall recovery of 67% in the quarter, we are targeting 70% or better for the remainder of the year and the team continues to work on process and throughput improvements.

So moving on to greenstone.

I get the pleasure of being able to speak about a really good story on construction progress. The team has done a great job.

<unk>.

We put out the greenstone update news release on Tuesday, and provided a complete summary of the project status.

Essentially the project is on budget and on schedule for H, one and 2020 for production.

Moving on to the next page looking at progress.

Overall progress at greenstone is 85% complete which is comprised of construction at 883% complete engineering is a 100% complete from procurement 87% complete.

Capital spend at June 30th is $937 million, which is 76% complete of the budget on 100% basis, and we have approximately $170 million remaining as equinox Gold's share to fund through to project completion.

Facility is handed over to operations. So far are the permanent effluent water treatment plant truck shop warehouse sewage treatment plant potable water treatment plant. The <unk> plant site fuel stations reagents storage building and site mixed emulsion or explosives plant.

The Ministry of Transport patrol yard has been turned over to the Ministry and the dismantling of the old mature patrol yard is now complete.

Highway 11 realignment is also complete and has now been transferred to the Ministry and was open to the public a few days ago.

And the natural gas pipeline to site has been commissioned and is now operational.

Plant site is is 75% complete the T. S. F is 80% complete.

Our operations are now at 240 employees will get to around 360 employees by year end.

And we look forward to hosting an analyst and investor visit in early September .

Now moving onto our other expansion projects.

At Castle Mountain.

We continue in permitting we've responded to queries from BLM, and we anticipate permitting being complete in 2025.

In the meantime, we continue with engineering work and with met test work to support the phase two of Castle Mountain.

Arizona as Greg mentioned, we've been advancing the engineering studies and these incorporate additional drilling and the recent work looked at the underground mining at a higher production rate given the large scale of the underground resource.

And we see benefits in continuing to advance our studies on operating with both open pit and underground to concurrently fill the plant.

So we are looking we are planning on developing an exploration decline in <unk> 'twenty, 'twenty, four which would provide us an opportunity to develop down to one of the <unk> mine in the ore zone and enabled collection of geotechnical and hydro geological information on or an walrod.

<unk>.

The plan is to have a fully dimension decline that would serve as a production access and will also enable a rapid start to underground production when we've completed our additional studies.

And then our fellows.

We continue to assess the opportunity to invest in <unk>, but we do remain focused on having the right climate in Mexico and within the region before committing to the major investment and while we also have competing opportunities for capital investment on other projects.

So with that I'm going to hand, it back to Greg.

Thanks, Doug.

I think I'll just make a final comment here to thank the entire equinox gold team.

<unk> coover and at all of our sites as well as our shareholders and other stakeholders for their continued support.

Finish up there and pass it back to <unk> for Q&A.

Kieran can you please remind people how to ask the question.

Certainly.

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I'll pause for a moment as colleagues join the queue.

Thank you well Theres no online question Geoff. So you can go ahead and take questions from with Barclays.

The first question is from Kerry Smith with Haywood Securities. Please go ahead.

Thanks, operator.

Good morning, everybody and congratulations on a good quarter.

I had a couple of questions. Greg first one was on greenstone, there was $177 million of contingency built in.

So that 123 billion capex, how much of that have you actually spent so far on the project as it been roughly proportionate to the percentage spend that you've completed on the project has been more or less.

No, it's roughly proportionate carry and when we talk about amount.

Amount left to spend we're assuming that we go through that contingency. So it was included in the initial total budget them out and we think we're going to come in at that total budget amount.

Okay. Okay. That's helpful. Thanks, and then the second question I had just on the convertible notes.

The 140 million that are due next April what is the plan or the strategy to deal with those notes to try and roll them out.

Yes, it's something we've been we've been working on recently I think that Theres a couple of options. Obviously, our first choice would be that they are well on the money in and we issued that equity but.

You can't always plan for that so yeah.

We are talking to the holders move Ottawa, who are who are very constructive and of course, we have other options available to us.

Of the market. So it is something thats on our radar carry and at some point will will.

Report of what we're doing on that specifically.

Okay, but do you think you'd have a strategy in place by Q3 years, that's something that's kind of fallen cheated.

Next early next year.

Yeah.

Whenever you've got debt maturing within a year and especially when youre in a large capital program I guess I think it makes sense to be ahead of it rather than too tied up against it. So if we can have something done over the course of the next several months I think that would be our preference.

Yeah, Yeah, that'd be cool, Okay, and then the last question I had how much Capex do you think there will be less to fund for greenstone in 2024.

Okay.

Hey, Kerry it's Pete.

We believe a $170 million will get us through.

To the point, where we don't need to fund Capex anymore. So.

Budget that we prepared assumes it's all of the Capex that the partners are going to have to provide the project before its able to take care of itself and support itself.

And how much of that 170 will flow into the next fiscal year there were roughly.

Oh.

We're on track for the $2 77, and we were going to spend this year and sorry, I just I don't have that split between this year and next year at my fingertips.

Okay. Okay. Okay.

Maybe willing to put more touch faster and just let me know.

That number what would be helpful. Thank you.

The next question is from Anita Soni with CIBC. Please go ahead.

Hi, I'll just follow up on that I believe at a $180 million and cents.

So dates arent well into June .

77 <unk> left.

For next year is that correct.

Yeah, Thanks for clarifying.

Clarifying.

Okay.

I have a couple of questions just firstly on the Leach inventory I think there was some buildup in Q1 and then some additional build up in Q2 can you just give me an idea of how much is allocated to each one of the assets I believe the majority is philosophy loss right.

Yes, that's fair yeah.

Okay and are there any others I noticed like Santa Luiza Mesquite I had to put some inventory adjustments I think God MTBE.

The cash cost per Gram.

Your appointment.

There is some mosquito and a smaller amount.

Faisel, but predominantly las villas.

Yeah.

Our remarks.

Maintaining and even a fairly large stockpile saddled us that's how we manage the blend of the ore going into the mill and so yes. The mining has exceeded throughput at <unk> and we are working at building and maintaining a fairly large stockpile there.

This is more complicated than the other mines, because youre trying to manage around the total organic carbon in New York.

Next time you go there you'll see it's a it's a stockpile inventory.

Management.

Before anything goes into the mill.

So that's broken or above ground stocks, rather than something yes.

Yes, Okay, and then Mike.

I guess a final comment on eight on on satellites as they also they also built up their spare parts consumables inventory balances a little over the first half of this year as well.

Might see that inventory figure salaries.

Okay.

Sales for the remaining assets I think that's a lofty levels mesquite and that we were talking about and castle mountain notes should probably reverse over the course of the year. I think you said for sure lost deals, but I just wanted to confirm for mesquite.

Yes for.

Fill us on mesquite, yes.

Okay and then.

Sorry, just on greenstone.

And I think we are as I mentioned $180 million a year to date on the <unk>. So how do we how is it going to play out for Q3 and Q4 like is it really bulky in Q3 year spend and then it.

Tapers down into Q4 for the 277 that you had answered I think as I mentioned, there was about a 100 million for this year and the breakout for you yet.

Yeah, that's right in EDA, we do expect that kind of typical S curve, there's a lot of activity happening now.

And then Youll see tapering through Q4.

Okay.

And then I think I had one more question and that was.

Oh, I forgot and I'll get back into the queue. Thanks.

Hi, I've got a question from an investor in Kuala Lumpur.

And just can you give any more clarity on how things are going at <unk>, you might be able to start the expansion there.

Well like I said earlier at.

At the moment, we're monitoring.

The status in Mexico in general, but also in the region.

We continue with the current heap Leach operations mining from Las Villas open pit loss pillows underground Burma Hall open pit in Guadeloupe open pit.

And we are who we are.

Advancing in our discussions with the communities as well, but we haven't picked the timing it hits.

Rushing into it with feel us when we have.

Other other development projects also on the go at Autozone in Castle Mountain.

We are judicious.

And judicious on how we deploy our capital yes, no decision will come onto us during 2023.

Maybe in 2024, we can provide more clarity.

Yes.

Operator, do you want to take any follow up call.

Certainly the next question is from Anita Soni with CIBC.

Hi, I'm back.

So it was the question with regard to the sustaining capital. So I think you spent about 35% right year to date and I just wanted to get an idea. If you did mentioned that that youll be spending it over the over the back half of the year. The remaining 65, but it will it be all 65 or do you expect to come in a little bit under.

Your ex what you had previously guided to.

Yes, we are planning on catching up on that sustaining spend Anita.

We deferred some equipment expenditure at <unk> Rd.

RDM, we deferred some of the tailings work into the second half of the year. We had planned on doing some of that work in Q2. So yes, we do plan on doing that in the second half of the year.

We.

We believe we are on track for our full spend for the year.

Okay and is it an even split between Q3 and Q4.

It's always it's always heavily weighted into Q4.

It's that.

That somewhat call. It typical operations pattern, where yeah, you head into budgeting and mine managers, our general managers recognize that.

They got behind on the sustaining spend I want to get it done before the end of the year. So you can assume that we will have more in Q4.

Okay, you got to move up their dot budget deadlines to like you know.

Yes.

Get them going.

Okay. Thanks, thanks for that and so.

So higher sustaining capital spend in Q4, but lower sustaining capital spend that green are so I'm not worried about my capital Bank a screenshot of Q4.

Correct.

Okay. Thank you.

The next question is from Wayne Lam with RBC. Please go ahead.

Okay, great. Thanks, guys.

I'm just wondering if.

Thank you Luiz.

Obviously very unfortunate situation this past quarter.

Can you just provide a.

More detail into what happened in terms of breaching safety protocols.

No way.

The answer is no and the reason is because we haven't really.

Good all right.

Out of respect for the employee family colleagues, we are not going into any details.

Publicly on what happened.

Okay got it thanks.

And then maybe at greenstone really nice to see things on track.

Just wondering with the project you know, 85% complete $170 million left to spend $300 million in cash with the revolver fully drawn.

Are you guys.

Any additional large spanner bottleneck names ahead as you enter the home stretch here.

The short answer is no.

Yeah. The the focus is on where in that phase.

Towards the tail end of construction, it's a fairly linear relationship between the amount of piping and electrical installation you have.

And the manpower they have doing it in their productivity rate.

They've made great progress through the summer which is.

What was planned and very Fortunately there they are staying on schedule on that front.

So it's really just keeping working that schedule of maintaining the productivity rates that we need.

We're happy with our commissioning readiness.

And we had a great report from greenstone yesterday that the recruiting is going very well.

In relation to operational readiness.

Had an external review of our operational readiness by another group.

Which also went well.

So with respect to what we have left.

Based on all the feedback that we have from our work internally from the assessments that we have done by independent groups. We we don't believe.

Right now that we do have bottlenecks.

That helps.

Significant remaining risk on mitigated risk related to them.

And Doug Doug referenced.

How many employees, we have today and where we need to get to by the end of the year.

We're in a pretty heavy recruitment drive two to wrap up the workforce that's.

That's actually going really well it was more challenging like a few months ago.

We had our own questions of whether we get there but.

As the mines advanced we've we've been able to really increase the level of work workforce for operations quite quickly.

It looks like we're on track for year end, but that was one area, where we definitely knew we had to focus.

But now we just got a full update yesterday again and things are going very well at greenstone and hopefully are common wave in September and you can see it for yourself.

Yes, yes, that's definitely plan to be there.

And it sounds like you guys are.

In a pretty comfortable spot.

Just wanted to confirm the original Capex number had about 100.

$5 million in fleet purchases clear.

Can you remind me if you guys could move to financing and you happen to have an estimate.

What kind of operating cost impact that might have as we kind of look into next year.

We did move to fleet financing wane, and we haven't done any guidance on what 2024 and operations look like so that we don't have an update on how that might affect operating costs. We will obviously provide that as part of our 2024 guidance when we release it.

But it's not something that we have today.

Okay got it and then maybe just last one for me.

Just on the inflationary impacts.

You guys have any percentage estimate on.

How much consumables have kind of <unk> versus your budget and then.

Some of your peers have noted.

Quite a bit of offset on the input cost easing.

Just given the stronger local currencies in Mexico, and Brazil, and just wondering if you guys are feeling those pressures as well as an offset to the input costs.

And have you been managing that.

Yeah. So prior to consideration of that FX strength that you're seeing in Brazil and Mexico.

We are starting to see some tapering in unit input costs, which were obviously very happy to see.

In Mexico, even prior to consideration of of FX with respect to diesel.

Pemex.

The government I should say our Pemex.

They tend to buffer fuel price increases, but at the same time.

When fuel prices taper.

There is an effect, where that's buffered as well so while we have seen fuel come off.

Yes.

Doug already mentioned quite reasonably in in the U S and also in Brazil, we.

We haven't seen that necessarily in Mexico with respect to FX, the FX in Brazil, and Mexico is almost effectively offsetting the unit price decreases that we're seeing.

With respect and then with regards to cost management, we hedge about.

50% of the near term FX.

Effects exposure that we have in Mexico, and Brazil, that's been helping some which is why you see realized gains on on our FX in our financials. That's what that program is.

Hopefully that gives you a rough idea of what we're seeing and how we try and manage the risk.

Okay sounds good that's great.

Alright, thanks for thanks for taking my questions and good luck in the months ahead.

Thanks, Michael Thanks, Brian I've got a question online from <unk>, our analyst at Scotiabank.

Cash costs in the first half of them in below the guidance range. How should we look at the second half are you on track to beat the cash cost guidance or is there a catch up in costs and all in sustaining over the second half that we should expect.

So I'll address the all in sustaining first is I think it's in the same line of questioning that Anita Anita mentioned some of the sustaining capital was deferred in the second half of the year, we do intend to spend that so youll see an increase there on a per unit basis.

With respect to cash costs as well, we do think they'll go up some as the inventory.

Releases us from the buildup, especially when related to our leaching operations.

So we see those going up a little.

And I'll just reiterate if we if we hit around the top end of our guidance. Then we will come in we believe right around the low end up both our cash cost and sustaining all in sustaining cost guidance.

Thank you operator, you can take our next question from the phone please.

Thank you. The next question is from Dalton Barreto with Canaccord Genuity. Please go ahead.

Thanks, Good morning, guys you sound good considering the Ara there.

Few questions from me.

Just first off on liquidity.

Outside of your <unk> stake are you kind of happy with the existing liquidity you have right now relative to the to the remaining spend or are you going to look to.

Get out and bolster its a little bit.

Yes.

Yes outside of I 80 were relatively happy so and.

We don't.

We don't see ourselves bolstering it.

Okay, Great and then just.

So, yes, 40% Orion stake in Green, So I know you can't speak to their intentions, but yeah.

On the chance that they look to offload their stake.

Post commercial production do you guys have a ROFO on that stake and then have you given any thought to how you would fund that.

Yes, we have a rover I think it's fair to say that.

We'd love to own more of greenstone.

And have we given any thought to how we would find it I mean.

Not definitely.

Definitely nothing that I would call advanced it's on our radar for sure because at some point, we expect we're going to need to act if we don't do something.

Preemptive, but.

Absolutely, it's something we think about and something we've talked to them about.

Absolutely, we'd like to own more greenstone, how that ends up playing out Dalton.

I can speak to that right now.

Okay. Thanks, and then.

One screens donation partial production how are you thinking about the broader portfolio are you happy with it right now are you going to look to make some changes.

Yeah.

You know I guess I'd say.

I think I've said in the past, which is over the course of building. The company. We've we've acquired mines, we've developed mines and we sold some mines.

We're always looking to to up tier of the portfolio and so if we can get to a place where we've got <unk>.

Larger longer life mines that fill out our production profile. That's you know that's a goal that we aspire to.

Yes.

We've got a lot of upside in our portfolio that we want to surface.

But that's not to say that we wouldn't make changes in the future right now we're very focused on getting greenstone built up and running and.

And in commercial production and then we've got a little more flexibility around that.

The longer term strategy at that point at this stage, we just want to keep our eye on the ball there Green zone.

Thanks, and maybe just one last one on castle Mountain phase two.

Sounds like you've got it a national response from the BLM and they look like they're going to happen.

Except the.

Except the application they flagged any kind of let's call them high risk areas that there'll be looking at or is this going to be a reasonably straightforward.

Well, both the county and BLM.

<unk> had a period, where they can do there.

I think it's called.

Assessment of completeness of our application and they made additional inquiries. So we responded.

It's just in the overall permitting process. So there is no indication of anything other than what we've moved to the point of answering the questions to be complete to be able to enter fully into the rest of the process.

Okay. So at this point in time, there is no kind of indications as to what theyre going to be focused on where theyre going up.

[laughter].

Look to actually.

Yeah, mitigate certain things water that sort of thing.

It looks really straightforward Dalton at this stage.

It's an already operating mine, we're not expanding beyond the currently permitted footprint that's already there and.

Not meaningfully changing the.

The processing that was there previously so it is as you know it's a straightforward application.

I guess the most painful part for US is just time right. It's it's got to go through their process I wish. This is part of it was coming in in 2024, it looks like it's going to be 2025, but no.

We haven't received any.

Comments that I would characterize as a controversial or concerning to us.

Great. Thanks, guys. That's all for me.

Alright, well I got no further questions if anybody thinks of anything after having a couple of cups of coffee. Please do get in touch by email Greg do you have any closing remarks.

Thanks, everyone for.

Joining the call. So early today I promise, it's not something we're going to make a habit of.

We had to accommodate some schedules but.

I do appreciate it though.

Got up early and attended the call and thanks again for joining US everyone said, you can always reach out to us directly and we're happy to answer questions.

Given you can close the call.

Thank you. This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

[music].

Okay.

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Yes.

[music].

Yeah.

[music].

Okay.

[music].

Yes.

[music].