Q2 2023 Fortuna Silver Mines Inc Earnings Call
[music].
Greetings.
And welcome to the Fortuna Silver second quarter, 2023 financial and operational results call.
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I'll now turn the conference over to your host.
Mr. Carlos Baca, Vice President of Investor Relations, Sir the floor is yours.
Thank you.
Good morning, ladies and gentlemen, I would like to welcome you to Fortuna Silver mines second quarter, 2023 financial and operational results conference call hosting the call today on behalf of Fortuna will be holding an identical and also president and Chief Executive Officer, Lisa and also Chief Financial Officer.
Scott Chief operating Officer at Latin America, David Whittle, Chief operating Officer of West Africa, and in Julian Waldron Senior Vice President of sustainability todays earnings call presentation that will be available on our website Fortuna silver Dot Com I'm. Sorry reminder, statements made during this call are subject to the REIT.
Advisory as included in yesterday's news release and in the earnings call presentation financial figures contained in the presentation and discussed in today's call are presented in U S dollars unless otherwise stated before I turn over the call to Jorge I would like to indicate that this earnings call contains forward looking information.
It is based on the company's current expectations estimates and believes it is subject to a number of risks uncertainties and other factors that could cause actual results to differ materially from a conclusion forecast or projection made in the forward looking information a description of these risks uncertainties and other factors.
You set out in the company's annual information form for the financial year ended December 31 2022.
Animal and DNA for the financial year ended December 31st 2022, and the Haynesville and DNA for the second quarter of 2023, which is which are all publicly available on SEDAR plus website.
Certainly a material factor for our selling shows were authorized by the company in drawing a conclusion or making a forecast or projection as reflected in the forward looking information in this call. These material factors or assumptions are also described in the company's annual information form for the <unk>.
Financial year ended December 31st brain training to the MD&A for the financial year ended December 31, 2022, and the interim MD&A for the second quarter of 2023. The company assumes no obligation to update such forward looking information in the future except as required by law I would now like to turn the call over to.
Okay.
<unk>, Chief Executive Officer, and co founder of Fortuna.
Okay.
Thank you Carlos and the highlights of the quarter and he served first of all for the newly built singular line for sure.
To place on May 24th we pre released.
So again it wasn't me were on budget and slightly ahead of schedule. So again. These are flagship asset for the company are these high margin gold ounces for over a decade of mining to our portfolio.
David Whittle, our Chief operating officer for West Africa is here with us and he will share with you our progress on the ramp up activities later in the school.
But I can advance beyond the normal startup hiccups here and there things.
Things are advancing according to plan.
And after a little over two years seems to work school acquisition and subsequent capital deployment towards the delivery of singular we're ready to start harvesting the cash flows and benefits of the transaction.
Our strategic expansion of the business into West Africa is going to start paying off you now have two operating mines in the region and starting in Q3.
With that thank God becomes our largest contributor to free cash flow.
And our recent agreement to acquire Chesa resources, and the advanced exploration stage, yet, but soup projecting San Diego.
Which is set to close in September .
That's to our exciting exploration and growth pipeline.
During the quarter, we had to contend with a couple of events that weighted on the operational and financial resorts with the company for the period.
Each word pre release and discussed in our Q1 and DNA of subsequent events.
At the San Jose mine in Mexico demands by the workers Union for higher profit sharing beyond what its mandated by law and or standing collective agreements with the Union led to a 15 day illegal blockade generating corresponding loss of production expenses and standby charges.
Across Mexico, there has been generalized workers' Union demands for higher profit sharing which would have affected several mines and more notable one probably being human spend you're skewed too.
Which unfortunately has been on standby for two months now trying to resolve the issue.
I've already got a local mine in Burkina Faso.
Had to repair the iron pig tunnel at the entrance worked all over the mine dosing the access to the main entrance to the 27 days. Although this event that you had on local people not impact production, which is dragging on the upper end of the guidance for the year it.
It did generate standby charges of approximately one 5 million.
And then he can data mine in Argentina are deep operations reached a peak in the movement of waste material during the quarter.
Reaching a stripping ratio 2.721, which we expect to revert back to one one to one <unk> for Q3 and 2.721 for Q4.
Also bear in mind that over the next 18 months.
Carving out the first and final planned expansion of the leach, but I didnt even bid on bi.
D C is up $34 million project and the single largest sustainability capex booked a fault.
I'd say game that we produced 4023 gold ounces in the quarter, but those ounces were sold in July .
So or Q3 sales will benefit from that bump in <unk>. When we report Q3 results.
Taking into account the issues described before or business manage to generate $99 million of free cash flow from operations.
$4 million and net cash flow from operating activities and $44 million and adjusted EBITDA and the net operating income of three and a half million or one.
One thing for sure.
Saudi David Odeon sustaining cost is expected to have peaked in Q2 at $1799 and to come down during Q3 and Q4 as the operational issues at San Jose in your local were successfully resolved in the second quarter waste stripping at <unk>.
That'll come sit down.
In the second half of the year.
And more importantly, we start benefiting from the figure in mind sales in the third quarter.
He says he told would expand on this.
There is a general theme of margin compression over the last year or so of course, the mining industry and we.
Of course have not been immune to this.
And again that is why assets like say a lot of people go through our portfolio. We expect to operate at an all in sustaining costs seem to have you seen any deal $5000 per ounce moving forward.
On the exploration side of the decent as we continued to report positive results from coming from singular infield drilling at Sundance.
Our new prospects like by that and that where we reported earlier this week.
A drill hole intersected 90 grams of gold over a true width of one eight meters.
So on a positive note or exploration that they get a multiple mine.
He is expanding mineralization in the producing sold 55 ore body.
We are planning for an injury reserves update before the end of the year, David Whittle will also be expanding on diesel as well.
Yeah.
In June we had a fatal accident that they pay you on the line.
And we'll be wonderful mine contractors conducting activities related to work at height.
These tragic.
Accident comes as a blow at a time when the gold mine has been operating without any lost time injuries for 23 consecutive months.
Has robust management systems and practices in place.
All identified improvement measures coming from the investigation and analysis. So they actually had been implemented at the mine site.
Ah corporate action plans in place to expand their needs across the organization. So something like this does not however, we'd be their game.
Subsequent to quarter end, we published or 2022 sustainability report.
Indicating either with me on the topical issues, so for environmental social governance, with our stakeholders and meeting expectations Sensibly is something we take very seriously.
As he said we carry out a thorough materiality assessment to identify which of the many expectations based on the sector.
And then what was I know a woman.
Julian Waldron senior Vice President exploration is here with us.
Can expand on the highlights of the report.
Yeah, Julien you wanted to touch on the report.
Yes. Thank you Oh, Hey, so are all these report do speak we booked a sustained retail adult fall for the company.
Kurt I know they teach format.
To to easy access to our E. G data such as the size of the T. C. L. E N G O right being or main years, you were talking frameworks are.
We also plays on the D. Here Standalone minions sustainability report for each of our operation. So you will be able to find all key peirsol months path sites.
We felt plays on total so a strong year as you can go back to the Guggenheim. Since then we saw a they get dedicated sustainability report.
So maybe he called me T and also.
Shelf 10 minutes on tea based on year to pass on that.
But we felt given also the detail of our 2022.
Therefore, a mess.
All of them I tell you all our ESG factors, so such as safety environment biodiesel ski well I tell Ya man, why waste management and human capital.
And we will you will find also comes men are of a company to implement them just three standout two minutes just to maybe can we 18 tweets kind of opportunities.
Mainly climate change.
Our climate change position statement based on G E D with the objective to disclose.
2030 G E. G would you chalk targets in becoming six months, we will have oh. So some news from stays out on these climate change is a matter.
Although a big commitment to this year or last year was a G. I S. T M techniques management, where we target the full compliance by 2027.
He started out screen well on T to minimize week from tailings my name's, Matt and ER.
And show the long term value of the company.
Finally, the report plays on the country be shunted tool, all our countries and local communities.
Financial contributions, but also you will see us all doing palmation about how we impact positively.
The life folks are all our people. So we encourage you to explore these although key aspect of our business. It's just an empty chair. We bought is really a good way to watch them.
Or a long term growth strategy and also how many in Canada and building a better world. Thank you back to you Holly.
Thank you Julien no we will have a chief operating officers.
<unk>, who will review the highlights for the region. So we can start.
West Africa, David do you want Oh go ahead.
Yeah.
Thanks Jorge.
Operations in West Africa continued their solid performance during the core second quarter of 2020 right.
Highlight being the completion of construction and the pouring of first solar that's a game of mine on Monday the 24th.
With 4023 ounces of gold being produced in the quarter, which we shipped in July .
As we commenced processing operations, we encountered some initial commissioning issues and also the mining plans to provide a more competent feed material to the processes Glenn.
Excuse me.
Initial processing plants safer commissioning was predominantly oxide ore from the upper 10 meters of mining at the antenna pig.
The sanction of the oven Paypal Paypal paid to be heavily depleted due to artisanal mining activities.
They're not putting therefore, not providing the initially expected right.
The nature of these oxide all sorry to our core species within the first stages of processing safety, leading to reduced three parts.
These issues have been addressed.
Cds now combination of fresh transitional adult side, all our nameplate capacity of 100 and safety toe or tonnes per hour is currently being met or exceeded.
Policy above early issues, meaning that we now expect production from Seattle will be at the low end of our guidance range current military pumps already exceeding nameplate capacity and a long term view of CDI was potential remains unchanged.
The initial grade control drilling at on tennis showed a 15% increase in contained ounces compared to the geological model.
And by a 2% increase in tons on 13%, increasing right when discounting the upper 10 meters of oxide ore.
Initial grade control drilling is now completed and the sealing tapes with stage two antenna grade control controlled drilling underway.
In the second quarter, so guy the monetary under 93100 tonnes of ore at an average grade of 2.35 grams per tonne.
And 877143 tons of waste a strip ratio of two points right.
All process was 109605 tonnes.
At 1.56 grams per ton with 4023 ounces being poured.
On July 18th.
Transformer feeding the site mill variable speed drives failed.
I know repair was always a view of the original equipment manufacturer was successfully undertaking.
Fortunately eight days of production from the processing plant were lost with normal operations like the magazine on July 26.
Yeah.
In other activities Gainesville drilling at the Sunday paper was completed in the beginning of the second quarter, which will allow for the conversion of the game, but material to reserve status on allowed us some that can be brought into the life of mine plans.
Those operations progress the focus will turn to Debottlenecking the current process plan.
Increasing throughput and does that mean that spansion auctions as the mine plan develops.
The current mine strong production performance or enable the operation to pull 29002 ounces of gold.
Mike It sounds like you are a mark out with 64779 tons at 6.35 grams per tonne.
Reduced mine out but was due to the 27 day stoppage caused by the loss of access to the mine safety Cogs are in mine due to the on site.
All five area.
On the portal.
No mall operations will resume daily by the mine has been operating as planned with nice slug of interruptions.
During the mine Stumpage crisis that you co operations, we're able to continue with the processing of surface stockpiles.
As such 144202 tonnes of ore were processed as an average grade of 6.51 grams per tonne.
Mining development continued to encounter higher grades than planned as well because they understand the mining boundaries to the western side of the ore body.
Diamond drilling is currently part of what you're seeing on the lower eastern side of the 55, so iron ore body.
It will switch back to the western Soggy third quarter.
Our second diamond drilled to further explore the western boundaries of the 55 Saar and these are expected to be mobilized all sorry in the third quarter.
Due to the increased grades encountered and the increase in mine and mill tons. It's now expected that your micro will exceed the upper end of current guidance.
Production for the first off it was 55479 ounces.
How do you see for the second quarter was $1626 an ounce.
And $1564 an ounce for the first half of 2023.
The lower end of guidance range.
Safety and health of our employees is a key focus of our operations.
Unfortunately, it's a guy to Liang Kid and L. T I a in April due to our processing plants and employee and carrying chemical Burns.
Yeah My carrier safety performance was.
Remain strong.
With no injuries or carrying at the mine in the second quarter.
Thank you and see you Jorge.
Thank you David we can move on to let them [laughter].
Thank you Jorge and good morning to everyone.
In in the second quarter of 2023, consolidated silver and gold production at our Latin American operations, plus one point 26 million ounces and 31323 ounces respectively.
Representing a decrease of $23 six and 16, 7% when compared to the comparable period in 2022.
This decrease in production was mainly driven by the 15 day illegal blockade at the San Jose mine as reference to by Jorge.
Which concluded on May 11.
And he also lower head grades are they a little money.
So in Argentina in General mine.
Mine production for the second quarter was a 0.8 million tons of mineralized material with a stripping ratio of 269 to one which is aligned with the operations plan for the year of $1 17 to one <unk>.
Gold production in the quarter was 25456 ounces, which is 12% lower when compared to the second quarter of frankly couldn't be too what.
But as mentioned these decrease is explained by lower head grades of mineralized material.
Material great on the Leach pad are fully aligned with the mineral research a mining sequence for the period.
Gold production for the first six months of 2023 totaled 50.
<unk> thousand 740 noses.
Well in line to meet annual guidance.
<unk> is expected to be at the high end of Panama guidance range, mainly due to higher sustaining capex driven by the leach pad expansion.
Hi, capitalized stripping cost higher inflationary pressures from key consumables and services and the lag on the depreciation of the Argentine peso.
The mind convenience capturing savings our focus remains on cost control and value generation.
Recent trading Hong constantly pursue efficiencies and delivering strategic capital projects on time and on budget.
Hi, I'm also pleased to report that the contract for the construction and operation of the solar plant actually middle has been awarded.
Solar plant will supply about 40% of the total annual energy requirement of peaking Mega Watt P. J.
January 18th fuel savings and contributing to the reduction of the operations cardboard footprint by approximately 4252 tons per year of C O two.
So that's good news.
This was an important step.
And engineering and permitting works have commenced.
Solar plant is expected to begin generating power like the fourth quarter of 2022, So everything is on track.
Yeah.
Moving to Mexico.
<unk> mine produced 0.9 6 million ounces of silver at an average head grade of.
168 grams per ton and 5778 ounces of gold at an average head grade of 1.02 grams per ton, reflecting a 31 and 30% decreasing production, respectively, when compared to the second quarter of 2022.
The decrease in production is explained by the 15 day food shutdown of operations due to the illegal blockade by the workers Union, which impacted planned production for the quarter by 47200 tons.
This also had an impact on the mine preparation plan delaying access to higher grade stopes schedule for a period as well as high absenteeism during the quarter.
The operation will have.
Adjusted the mining plan and a higher grade stopes are expected to be mined in the upcoming months.
Management has implemented a revised mining and processing plant to recover the lost production in the quarter.
At this stage no. It is anticipated that silver production will achieve the lower end of final guidance range.
<unk> gold production will come below the.
The effect on costs derived from the agreements reached with the Union.
The blockades impact on production has been significant and are being partially offset by reducing nonessential expenditures on capturing further efficiency initiatives for the remaining of the year.
Additionally.
Costs have also been affected by a stronger Mexican peso, which has appreciated approximately 20% year to date, coupled with higher inflation of supplies and services. It is anticipated that pacing for the year would be slightly above guidance, mainly due to the impact of the blockade on standby charges DRAM.
From it.
Moving down to Pearl in the second quarter of 2023, Yamana mine produced 305296 ounces of silver at an average head grade of 84 grams per ton a 14% increase.
In the comparable period in 2022.
Production has benefited from higher head grades stopes at the lower levels of the Animas vein.
Silver production for the first six months totaled zero point 15, 9 million ounces on track to achieve the upper end of annual guidance range.
Zinc production was 14, and pinpoint 2 million pounds at an average head grade of $5 18 per cent and three point, 72% respectively.
29, and 34% increase when compared to the second quarter of 2020 to.
As mentioned before the increase in production is a result of higher head grade sourced from the lower levels at the Animas vein think of led production for the first six months totaled $27 1 million pounds, $19 7 million respectively.
AC.
Tracking well to meet annual guidance range as the operation continues to lead to delivered strong production at a lower cost.
After you Jorge.
Thank you Sir.
Yeah.
Please go ahead.
Yeah. Thank you.
So sales were $158 $4 million in the quarter and that's a decrease of $9 $5 million compared to the prior year.
The decrease was driven mainly by the lower metals sold at San Jose is explained due to the illegal blockades reported in the month of April .
Silver and gold metal so.
San Jose water at 31% and 30% below the prior year.
So it's all votes of a 15 day stoppage and that's just sort of explain the lower average production rates or effective dates days of production.
Silver and gold prices were up seven 6% compared to Q2 2022, but this positive effect was offset by a sharp drop in zinc prices up 31%.
Our operating income was down $5 $4 million, primarily as a result of lower sales and the $7 $1 million of nonrecurring expenses.
That we've mentioned consisting of $345 million of standby charges $2 $8 million related to a new agreement with the Workers' Union at San Jose and 1 million $1 million find that there are multiple.
Consolidated cash cost of sales per gold equivalent ounce was approximately $970.
This is $80 above the Friday Friday or a year. The increase was a result of higher cost per ounce sold of San Jose really related to lower part of the theater rates and lower head grades as a result of the ramp up process after the stoppage.
And higher cost per ounce of limb girdle related to lower volume produced and higher input costs. This was partially offset by lower cost per ounce sold at yet a mobile.
Our lower income taxes in the quarter compared to Q2 of 2022 reflects lower income before income taxes, and a tax credit in the quarter, our Mexican operations.
In addition, the prior year effective tax rate was impacted by timing of withholding taxes.
After the aforementioned impacts and one time charges, we recorded net income of $3 $4 million or one cents per share.
With respect to our all in sustaining costs.
We have disclosed $1799 per gold equivalent ounce sold which represents an increase of $366 year over year.
The increase is explained by the effect of the stoppage at San Jose.
Described before and higher ASIC of Lynn Liddle, driven primarily by higher sustaining capex associated to phase two of the leach pad expansion.
And then in the planned stripping ratio for a year as well as high higher cost per ounce.
Mentioned before.
In terms of free cash flow.
Net cash from operating activities in the quarter was $44 $2 million compared to $47 4 million in Q2.
2022.
Working capital as per the cash flow statement were positive $2 $7 million and it's worth noting this includes $4 $4 million of negative changes in working capital from singular consisting of inventory and payables.
We have excluded from our reported $95 million of free cash flow from operations.
This free cash flow from operations figure is after sustaining capex brownfields exploration and corporate expenses.
Yeah.
Cash used in investing activities as part of that cash flow statement is $73 $2 million. This consists of $35 $6 million of sustaining capex, including brownfields.
$19 $5 million in construction and preproduction activities at <unk>.
A $10 million payment associated with first gold I figure a lot.
$3 $4 million of capitalized interest.
And $4 $5 million in Cogs related to the chips are resources transaction.
At the end of the quarter, we still had approximately $9 $4 million of construction payables outstanding.
Moving onto our balance sheet, we closed the quarter with a liquidity position of $98 million a revolving credit facility of $250 million was almost fully drawn at the end of the quarter and we expect to start reverting. This in the second half of the year as we start paying.
Down depth. After the end of this week 11 instruction, we maintain a strong liquidity position going into the second half of the year.
Finally, our total net debt, including the outstanding convertible debenture is $198 million, resulting in a leverage ratio of total net debt to adjusted EBITDA of zero Boeing ninth.
Thank you.
Okay.
Thank you God with Q&A.
Thank you Jorge we would now like to open the call to any questions that you may have.
Banking at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
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One moment, please while we poll for questions.
Thank you. Our first question is coming from Eric Windmill with Bank of Nova Scotia. Your line is life.
Great. Thanks for taking my question.
Game, but obviously, great to see used to Gail or ramping up well I know, it's still early days, but just wondering if you had any additional detail in terms of what youre seeing in terms of the rent.
Where the grades tracking in terms of reconciliation in tons and you know when you think you might get to steady state there I mean, notwithstanding the transformer issue that'd be great. Thanks.
David do you want to expand on that one.
Yeah no problem.
Yeah. He initially as we touched on in the in the.
Discussion area, our grade control drilling at the antenna.
In the case of the an increase in overall ounces.
No problem predominantly rate driven as well.
And the reason we call reconciliations to the plan.
That would now imply that we are seeing those grades as expected from our mining mining plans actually in the mill as well.
Are we still got to do the reconciliation of the grade control drilling a tendency and which is now being completed that will probably still be a couple of weeks away.
And the grade control drilling at the stage two of antenna.
These are currently underway.
Okay.
The two other lead a call or two that are with the infield drilling at <unk> 10, which is the anchor for production this year and into the next one.
The infill agreed.
So the 10 meter drill spacing program, that's who you're now giving her.
Computers for ore control.
Yeah.
And we expect to report or or you know conciliation of production too.
Who reserves.
At the end of the third quarter with the results for the third quarter.
For the second quarter, you know it was just a few initial weeks of production and getting the mill violence.
<unk> says that went on.
In the first.
So.
The third quarter in July .
You can expect to know the team is dealing with a balancing where you tell them that there's.
Waiters and stuff like that.
Its normal within information process. So we expect that by the end of Q3, we can probably provide.
Or first reconciliation, but so far everything suggest David that were true.
And that alone expectations.
Yep.
Our initial initial issues would be predominantly oxide ore.
Yes.
Yeah.
Okay, Great no. That's super helpful. Thank you very much I'll hop back in the queue.
Okay.
Thank you. Our next question is coming from Don Demarco with National Bank Financial Your line is life.
Thank you operator, good morning, Jorge and team.
Guys just following along the.
Line of questioning previous calling to gorilla corrugate.
You mentioned, you're expecting a S E on the order of about $1000 an ounce going forward.
But just just wondering if you're gonna be reporting and see for Q3 and <unk>.
And how should we model costs during this ramp up say over the next two or three quarters.
Okay.
Yes.
Yeah.
We will be reporting all in sustaining costs for the quarter I mean, I think it would be reasonable to expect that our.
Those are all in sustaining premier's for or are they neutral.
Months of production.
I'm gonna be a bit distorted.
But we plan to report, we're making some adjustments or some adjustments have made have been made also to the original mine plan that David described.
We have a.
To expose more.
Fresh ore then or you know plan contemplated.
We've had to move faster into.
Yeah.
Two shifts in the pit rather than just one.
So those things we will have some some bearing on the all in sustaining in the short term for sure.
But the.
The long term.
Long term I'm talking about you know at this stage.
The next two quarters.
I would expect we are trucking.
We've been or guidance expectations.
Yeah.
Perhaps you want to expand the anything on that.
Just I'm.
Just to provide a bit more visibility I mean that involves a cash cost per ounce.
In the range of 600 to $650 on average over the next couple of quarters.
Depending a squad.
<unk> on some of the.
Although variability we might see as the mine continues to the mine plans continue to draw that and and Lasik, yes, it's we stick to our guidance of.
Around a 1000 and $1050 a barrel.
For the second half of the year on average.
Okay. Thank you for that.
Just a second question looking at the Chester acquisition.
Clearly this provides an opportunity in your pipeline.
Ah we're looking ahead to the close of the transaction in September but beyond that could you give us.
The timing on some milestones you might expect.
A resource update P. A I don't know maybe it's too early to talk about.
Oh, you know potential first poor or something but what does the runway of of catalysts and milestones that you envision for this.
Yes.
Well, that's a damn about food.
There remains some exploration project to Pittsburgh has advanced with.
P and was trying to move beyond the P. It building on it.
Engineering towards.
Pre fees.
Ah study.
Yeah.
We are analyzing reviewing all of that work there might some there might be some engineering work, we will not continue.
Pursuing but largely for us safer remains on the exploration Barry.
The embassy suite is today, a sub million ounce deposit unless he sits today doesn't meet the core.
Great theory for developing on my.
Yeah.
But we having said that we kind of a.
Where are the strong view that there is any year opportunities to take that sub million ounce deposit as it sits today and it.
Well beyond the 10 million ounces.
Yeah My food.
It sits at the core or one of the most productive.
<unk> built in the West African region.
Kilometers away.
And as you.
You know the causal and Lulu and the B two worlds that goes online.
And so.
We are quite excited about the exploration opportunity this presents but even some exploration pruning for us we still have two.
Show success with the drill bit and all of them, but it would be on the meta analysis before we contemplate.
Development stage earlier, so it's an advanced exploration period for us.
One we're very excited.
We are currently developing an unexplored ratio budget, we wanna be drilling the embassy suite.
Before the end of the year.
But first things first we need to grow the transaction that will take place in September that's your best estimate right now.
The other exploration team.
Uh huh.
Yes.
We are working already on the exploration budget for the second half of 'twenty to 'twenty three.
Okay.
Thank you for that that's helpful.
And that's all for me so good luck with the continued ramp up at sequela.
Okay. Thank you.
Thank you once again, ladies and gentlemen, if you have any questions. Please press star one on your telephone keypad at this time.
Okay. We appear to have no questions on the line at this time Sabo hand back for any closing comments.
[laughter].
Thank you Ali if there are no further questions I would like to thank everyone for listening to today's earnings call have a great day.
Thank you. This concludes today's conference and you may disconnect. Your lines at this time and we thank you for your participation.