Q2 2023 Fortuna Silver Mines Inc Earnings Call
[music].
Greetings.
Welcome to the Fortuna Silver second quarter, 2023 financial and operational results call.
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Question and answer session will follow the formal presentation.
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I will now turn the conference over to your host Mr.
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 identical and also president and Chief Executive Officer, Luisa and also our 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 reader.
Advisory 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.
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.
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 2002.
Turning to the Haynesville.
G&A 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 for us.
Some shelves are also described in the company's annual information form for the financial year ended December 31st grain train through the Idaho and DNA for the financial year ended December 31, 2022, and I am sorry, and DNA for the second quarter of 2023. The company assumes no obligation to update such forward looking information.
The future, except as required by law I would now like to turn the call over to Jorge.
<unk>, Chief Executive Officer, and co founder of Fortuna.
Okay.
Thank you Carlos and highlights of the quarter and these are first of all for the newly built singular line for sure.
To place on May 24th we pre released.
I figured that was the lever 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 report the full year.
David Whittle, our Chief operating officer for West Africa is here with us and he will share with your progress on the ramp up activities later in the school.
But I can advance beyond the normal startup hiccup here and there 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 we 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 a chance of 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 results for the company for the period.
It's worth pre release and discussed in our Q1 and DNA of subsequent events.
It did sound 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 general life Workers' Union demands for higher profit sharing which would have affected several mines and.
The more notable one broadly being human spend you're skewed too.
Unfortunately, it has been on standby for two months now trying to resolve the issue.
Either you get a multiple mine in Burkina Faso.
Had to repair the yarn thick tunnel at the entrance worked all over the mine dosing the access to the main entrance to the 27 days, although D C band, but yet the market did not impact production, which is dragging on the upper end of the guidance for the year.
You'd be generating standby charges of approximately one 5 million.
And then in data mining in Argentina, our people operations reached a peak in the movement of waste material during the quarter.
A stripping ratio of 2.721, which we expect to revert back to one one to one.
For Q3 and 2.721 for Q4.
Also bear in mind that over the next 18 months, we will be carving out the first and final planned expansion of the leach, but I didnt even bid on bi.
D C was at $34 million project and the single largest sustainability capex booked are falling.
That's a game that we produced 4023 gold ounces in the quarter.
Those ounces were sold in July .
So or Q3 sales will benefit from that bump in it 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.
$34 million and adjusted EBITDA, and net operating income of three and a half million or one cent there sure.
Consolidated all in sustaining cost is expected to have peaked in Q2 at $1799 and to come down during Q3 and Q4.
Operational issues at San Jose and Yeah that local were successfully resolved in the second quarter waste sleeping admin that'll come down.
In the second half of the year.
Sure.
And more importantly, we start benefiting from the figure in mind sales in the third quarter.
He says he a pool 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 as it's like see a lot of people.
The 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 infill drilling at Sundance.
New prospects like by that and that's where we reported earlier this week.
A drill hole intersected 90 grams of gold over a true width of one eight meters.
Also on a positive note or exploration that they get a multiple mine continues expanding mineralization in the producing sold 55 ore body to a point, where youre planning when he's doing research update before the end of the year, David Whittle will also be expanding on diesel as well.
Okay.
In June we had a fatal accident that they came in.
And we'll be wonderful mine contractors.
Ducting 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 and has a 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 and corporate action plans in place to expand their need for growth or any station.
Something like this it does not it or we'd be their game.
Subsequent to quarter end, we published or 2022 sustainability report.
Communicating with me on the topical issue so for environmental social governance, with our stakeholders and meeting expectations sensibility is something we take very seriously.
So as he said we carry out a thorough materiality assessment play than people probably in each of the many expectations based on the sector.
Weeks ago, whereas in the moment.
Julian will drive our senior Vice President exploration is here with US and then expand on the highlights of the report.
Or was it you wanted to touch on the record.
Yes. Thank you Oh, Hey, so are all these report do Steve we talked a sustainability report for the company incurred a net 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.
We also plays on the D. Here Standalone minions sustainability reports for each of our operation. So you will be able to find all key peirsol months path sites.
Hmm.
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.
We felt gieve also the detail of our 2022.
Therefore, a mess on all of them I tell you all our ESG factors, so such as safety and augment biodiesel ski well I'll tell Ya man why why is my name is Amanda and human capital.
We will you will find also our commitment.
Of the company to implement a new suite standout two minutes just to give you can we can tweak kind of opportunities.
Mainly climate change Oh climate change position statement based on G E D with the objective to disclose.
So T G E. G would you chalk targets in becoming six months we will.
Also 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 I'm, turning my last month, where we target full compliance by 2020 say that'd be standouts. Meanwhile, on T to minimize waste from tailings my name's, Matt and ER.
And show the long term value of the company.
Finally, the report plays on the contribution to our house countries and local communities.
Financial contributions, but also you will see all the information about how we impact positively a lie.
The lie folks are all our people. So we encourage you to explore visa although key aspect of our business. It's just an empty chair we bought eased if any do you have a good way to us.
Or a long term growth strategy and also how about in Cannes and building a better world. Thanks, you back to you Holly.
Thank you Julien no we will have a chief operating officers.
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 a call second quarter of 2020 right.
Highlight being the completion of construction and the pouring of players told us it'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 from Eugene Katz, and some initial commissioning issues and all of a sudden mining plans to provide a more competent feed material to the processes Glenn.
Treat me [laughter].
Initial processing plants safe.
<unk> was predominantly oxide ore from the upper 10 meters of mining at the antenna Pik.
The sanction of the on the Paypal Paypal pizza would be heavily depleted due to artisanal mining activities.
They're not therefore, not providing the initially expected right.
The nature of these outside all sorry caused issues within the first stages of processing safety, leading to reduced three inputs.
These issues have been addressed.
So you're just now combination of fresh transitional and oxide ore.
<unk> play capacity of 100 and safety toe hold tons per hour is currently being met or exceeded.
Policy above early issues, meaning that we now expect production comes together, we'll be at the low end of our guidance range current mill, three pumps or exceeding nameplate capacity and a long term view of CDI was potential remains unchanged.
The initial grade control drilling is on tennis showed a 15% increase in contained ounces compared to the geological model.
All of them by a 2% increase in tons and 13% increasing right when discounting the upper 10 meters of oxide ore.
Initial grade control drilling is now completed patent sealing tapes with stage two antenna tape grade control controlled drilling underway.
In the second quarter, some guy the monetary under 93 gas and 100 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 tons.
1.56 grams per ton with 4023 ounces being poured.
On July 18th the transformer feeding the site mill variable speed drives style.
On a repair without overview of the original equipment manufacturer, we successfully undertaking.
Unfortunately, eight days of production from the processing plant were lost with normal operations commencing on July 26.
Yeah.
In other activities Gainesville drilling here for some but it 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 examining expansion options as the mine plan develops.
The Martin Currie mine strong production performance enabled the operation to pull 29002 ounces of gold.
Mike It sounds like you are America was 64779 tons at 6.35 grams per tonne.
The 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 tight tunnel five area.
On the portal.
Normal operations were resumed in early May and the mine has been operating as planned with no sugar interruptions.
During the mine stumpage, Christchurch, new compilations, we're able to continue with the processing of surface stockpiles.
As such 144202 tonnes of ore were processed.
I've reached <unk> 6.51 grams per tonne.
Mining development continued to encounter higher grades than planned as well as they extend the mining boundaries to the western side of the ore body.
Diamond drilling is currently probably what you've seen on the lower eastern side of the 55 or so in the ore body.
But we will switch back to the western SOG and with third quarter.
Our second diamond drilled to further explore the western boundaries of 50 fives are and these are expected to be mobilized also in the third quarter.
Due to the increased grades encountered and the increasing mineable tons. Each now expected the ear of micro will exceed the upper end of current guidance.
Gold production for the first of year 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.
Fortunately, it's a guy who young Kid and L. T I a in April due to a processing plant and employee and carrying chemical burns.
But here in my carrier safety performance was.
<unk> strong.
Alrighty injuries are carrying out in the mine in the second quarter.
Thank you and see you Jorge.
Thank you David we can move on to let them.
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.
The decrease in production was mainly driven by the 15 day illegal blockade at the San Jose mine as reference to by Jorge reached.
Which concluded on May 11, and also.
Also lower head grades are they a little money.
So in Argentina and in their own mind.
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 in line with the operations plan for the year of $1 17 to one <unk>.
Gold production in the quarter was 25456 houses is 12% lower when compared to the second quarter, a fun thing to do but as mentioned the decrease is explained by lower head grades of mineralized.
Material great under.
The leach pad.
They are fully aligned with the mineral research a mining sequence for the period.
Production for the first six months of 2023.
50714 ounces.
Well in line to meet annual guidance.
<unk> is expected to be at the high end of annual 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.
Kosmos remains on cost control and value generation by concentrating on constantly pursue efficiencies and delivering strategic capital projects on time and on budget.
I'm also pleased to report that the contract for the construction and operation of the solar plant I believe that all has to be not warranted.
The solar plant will supply about 40% of the total hanwha energy requirement of peaking Mega Watt peak.
Generating fuel savings and contributing to the reduction of the operations cardboard footprint by approximately 4252 tons per year of C O two.
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> 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 that 15 day full 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.
<unk> for the period as well as high absenteeism during the quarter.
The operation will have adjusted that.
The mining plan and the 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 as well as 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.
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 derived from it.
Moving down to Peru in the second quarter of 2023, Yamana mine produced 305296 ounces of silver.
Average head grade of 84 grams per ton a 14% increase.
In the comparable period in 2022.
Production has benefited from higher head grade 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 an ROE guidance range zinc.
Zinc and lead production was 14, and pinpoint 2 million pounds at an average head grade of 518% and three point, 72% respectively.
It's at 29, and 34% increase when compared to the second quarter of 2022 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 of 19.
One 7 million pounds, respectively.
<unk> is tracking well to meet our annual guidance range as the operation continues to lead to deliver strong production at a lower cost after.
After you Jorge.
Yeah.
Thank you Sir.
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.
Blaine due to the illegal blockades reported in the month of April .
Silver and gold metal, so San Jose were 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 that 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 a $7 $1 million of nonrecurring expenses.
But 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 finding 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 at midnight or related to lower volume produced and higher input costs. This was partially offset by lower cost per ounce sold via the mobile.
Our lower income tax 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 as described before and higher ASIC of Lynn Liddle, driven primarily by higher sustaining capex associated to phase two of the leach pad expansion.
And they pick in the planned stripping ratio for the year as well are high higher cost per ounce has mentioned before.
Okay.
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.
Changes in working capital as part of 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.
Which we have excluded from our reported $9 $5 million of free cash flow from operations.
This free cash flow from operations figure is after sustaining capex brownfields exploration and corporate expenses.
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 gala.
A $10 million payment associated to first gold I figure a lot.
$3 $4 million of capitalized interest.
And for $5 million in Cogs related to the chip set of resources transaction.
At the end of the quarter, we still had approximately $9 $4 million of construction payables outstanding.
Yeah.
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 debt.
After the end of this figure like construction, 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 was 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 pull 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 together ramping up well I know, it's still early days, but just wondering if you had any additional detail in terms of what you're seeing in terms of where.
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 that was standing you know the transformer issue that'd be great. Thanks.
David do you want to expand on that one.
Yeah no problem.
Yeah, you need initially as we touched on in the in the.
Especially in the area are all grade control drilling at a the antenna.
<unk> indicated that an increase in overall ounces, a permanent 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.
We still got to do the reconciliation of the grade control drilling your tenancy 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.
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 infield greed.
So the 10 meter drill spacing pretty much who you know, giving or how your confidence for ore control.
Yeah.
And we expect to report or or you know conciliation of production too.
Yeah.
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.
This is edwin.
On in the first month of.
Uh huh.
The third quarter in July .
You can expect to know the team is dealing with a balancing where you feel that there's a third.
Waiters and stuff like that which snorting.
As normal with any commission process. So we expect that by the end of Q3, we can probably provide a.
Or first reconciliation, but so far everything suggest David that we're trucking along expectations.
Yep.
That initial initial issues would be predominantly oxide ore.
Yes.
Okay.
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 <unk>.
Your line of questioning previous colon sequela.
Okay, you mentioned.
S C 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.
Whose 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 for the next two quarters.
I would expect we are trucking.
We've been in or or guidance expectations.
Yeah.
Perhaps you want to expand the anything on that.
Just 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 as Jorge just described on some of the.
Although variability we might see as the mine continues to the mine plans continue to adapt.
And and basic yes, it's.
We stick to our guidance of.
Around a 1000 and $1050 a barrel.
<unk>.
For the second half of the year on average.
Okay. Thank you for that just second question looking at the chest or 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 a sense of 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.
We'll have a damn about food.
There remains some exploration project to Pittsburgh has advanced.
With a P M.
We're trying to move beyond the P. It building on them.
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 a safer remains on the exploration at the embassy suite is to the sub million ounce deposit and if he sits today doesn't meet the core.
Great theory for developing on money.
Yeah.
But we haven't said that we kind of a.
We're a very strong view that there is for the year opportunities to take that sub million miles with positive. It sits today and well beyond the 10 million ounces.
Yeah My food.
Seats at the core.
One of the most productive.
<unk> built in the West African region just kilometers away.
And as you know.
The cultural and Lulu and the B two worlds that goes online.
So.
We are quite excited about the exploration opportunity this presents but even some exploration pruning for us we still have to show success with the drill bit and all of them, but it would be on the meta analysis before we contemplate.
Development stage.
So it's an advanced exploration period for us.
We're very excited about it.
We are currently developing an unexplored Asian budget, we wanna be drilling D&O suit.
Before the end of the year.
But first things first we need to close the transaction that will take place in September .
Best estimate right now.
And but are exploration team, who always in the news are working already on the exploration budget.
The second half of 2020.
Okay. Thank.
Thank you for that that's helpful.
And that's all for me so good luck with the continued ramp up at sequela.
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 Saba I'll hand, it back for any closing comments.
[laughter].
Thank you Eddie 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.