Q3 2023 SSR Mining Inc Earnings Call
Hello, everyone and welcome to SSR My Name's third quarter 2023 conference call. This call is being recorded at this time for opening remarks, and introduction I would like to turn the conference over to Alex on check some exercise.
Please go ahead.
Thank you operator, Hello, everyone. Thank you for joining us with our mining third quarter of 2023 conference call during which will provide an update on our business and a review of our financial performance.
Our third quarter of 2023 and thought of the financial statements have been presented in accordance with U S gap.
These financial statements had been filed on Edgar Theodore B I S. X men are also available on our web site.
Pumping our call there was an online webcast and you'll find the information to access the webcast and our news release relating to this call.
Please note that all figures discussed during the call or in U S dollars unless otherwise indicated.
Today's discussion will include forward looking statements. So please read the disclosure and the relevant documents.
Joining us on the call today are Edward free cheap corporate development Officer, Alison White, Chief Financial Officer, and Bell make me, a an executive vice president of operations and sustainability.
Now I'll turn the call over to Eddie forget the opening remarks on five three.
Thanks, Alex.
Afternoon tea, all and thank you for joining us today.
First of all I want to communicate that our executive chairman <unk> for not being able to join us today.
Unfortunately, he's dealing with the family health emergency and it's currently in transit.
With respect to the quarter as planned.
Police to report a strong third quarter operational which included lots of production from Miracle.
As well as Rebecca <unk>.
Unconscious, but all sustaining pulse warm.
Thousand $289 an ounce.
Meaningful improvement over first half results.
These metrics drove me out of $100 million in free cash flow generation in the corner.
We anticipate further production and cost improvement in the fourth quarter of this year as we continued to track towards the lower end of our full year production guidance of 700000, Goldikova, one outfit and as a result, the high end of our orland sustaining call spot.
We're also proud Mark a significant milestone in the third quarter with the delivery first production from checking back type of extension.
This time on his wall line to our internal expectations and most impressively what's deliver just six years. After the initial Bill Hall was completed at the property.
Since our 20th 21 Technical report we've had significant exploration success a check next type of extension and are excited about the continued growth potential of the property.
As a result, we are now evaluating opportunities to optimize the plushie meaningfully improve cold recovers.
We'll discuss these opportunities and more detail along with other aspects of organic Gulf profile and a few months.
I wanted to also communicate number of other key highlights from the third quarter.
First at Hot Madam initial earthworks [noise] <unk>.
<unk> preparations.
An insult drilling that'd be gone as we advance the project toward that construction decision submit 2024.
Second.
Liquidity position was enhanced during the quarter with an amendment to a revolving credit facility expanding the facility's total capacity to on Undrawn $500 million at a reduced margin and bringing our total liquidity decision to more than $900 million.
Third or brownfield exploration portfolio continues to advance successfully as we look to extend mine lives adult Seabee and tuna.
Impressive drilling results from campaigns across the portfolio, including 46 grams of town intercept over six meters at C. D's, Porky West target and 190 meters of 155 Grand per ton silver and 10.6 per cent <unk> from the quota darris target at home. These are truly spectacular.
Adults and a strong reminder.
<unk> organic both times.
And finally, we continue to track we continued our track record of robust capital returns with nearly $90 million return to shareholders over the year to date period as we tracked what the minimum total returnees, a 3.6 per cent for the year.
As we head towards the end of 2023. It is worth noting that we have committed substantive efforts towards the advancement of a fresh technical reports for both marigold in trouble.
As we evaluate the interim results of the technical analysis being completed a both assets we are working to maximize value. While also ensuring an optimized production profile for the portfolio over the long term.
At Trippler as I have noted all continued success expanding the scale of the check next step a extension has triggered a vision to the prior lights of mind plan, which featured 1.2 million ounces of production with the majority of the projects or stacked on he pleach pads and averaging approximately 60 per cent.
[noise] covers.
<unk> planning to install grinding and leaching capacity Choper, we can materially improved dose recoveries and potentially deliver a significant valuation uplift for the entire operation. However.
However.
This will mean, a slower ramp up to full production levels until later in 2026.
Additional processing equipment is installed.
Combined with the expectation of a positive construction decision for Hot Madden next year. It is clear our business is moving into a reinvestment cycle over the next three years that will see production lower.
Prior 2024 guidance range by approximately 10% to 15%.
We do however expect that the near term reinvestment in our portfolio will drive production growth in the medium to long term timeframe as <unk> production profile improves.
Leach circuit Tums online a chocolate and a hot Madden project build is completed.
We are excited by what's ahead, both into your head and over the coming years. Our portfolio features an abundance of high return low capital intensity growth opportunity that we expect will drive further expansion going forward.
S. S. R mining has a proud history as explores mine builders and operators as well as a long track record of food and value added a emanate our business is in a strong position supported by a slow best balance sheet, including more than $900 million in total liquidity and we are keen to continue building on our.
Solid foundations.
I'll have to fly for all comments on E. S. P.
E. A Z is long has been a core value in focus for the company is it firmly underpins our success, we continue to Prioritise, the health and safety of our employees and business partners and are seen positive results with respect to our safety metrics across the portfolio.
In 2023 re re invigorated, a focused and formal leadership in the field initiatives to drive engagement and improve safety performance across the operations.
<unk> has been met with enthusiasm from our teams and it's already showing positive results.
Additional key initiatives. This year include continued development of an action plan on our journey towards decarbonization, including evaluating options to incorporate renewable energy and technologies into our operating platforms.
We are enhancing our water management plans for each of our assets and fine tuning our efforts Uhm integrated mine closure plans to ensure we leave a positive and lasting legacy for our local communities.
Expect.
<unk> to the international cyanide management.
While marigold is already a signatory, bringing our entire portfolio to this level is another positive step forward on R. E. S. G journey.
As we had done previously we continue to work hard to advance R. E. S. G initiatives and look forward to sharing additional updates on that journey going forward.
Thank you Betty.
I'll start with an overview of the results from the third quarter.
Third quarter protection of 192000 called equivalent outfit was largely in line with expectations and Brown ear to date production, So 496001 ounce.
And the third quarter or 196000 called equivalent outfit and were impacted slightly by the timing of concentrate shipments from <unk>.
We expect similar impact at the end of the fourth quarter based on prior history, particularly given the holiday season and as a result.
<unk> <unk> production.
Oh and sustaining cost.
$1289, an ounce with a meaningful and first name covered the first half results.
And included cost associated with a scheduled maintenance shut down there.
So do you expect to be continued cost improvement in the fourth quarter at 2023.
Attributable net income what $15.2 million, including 837 million or 18 cents per share charge associated with the increased corporate tax rate in Turkey.
As previously announced on July 15th Turkey announced five per cent increase in the corporate tax rate from 20% to 25 per cent that is retroactive to January 1st 2023.
The entire impact was recorded during this quarter.
Despite the changed any over all tax rate to 25 per cent. It is important to note that our cash taxes paid in tech I D are not impacted in the near term.
Listing incentive tax credit eligibility within the country.
Adjusting for the tax rate change another one time items adjusted it <unk> what $53 million.
Or 26 cents per diluted share.
In the corner, we delivered positive free cash flow at $88 million for $95 million for working capital adjustment.
Bringing your date free cash flow to $54 million or $173 million, but for working capital adjustment.
We expect another quarter at strong free cash flow during two four given our expectation a stronger protection to close out the year.
Now turning to five six we can talk about S. S R <unk> financial position.
As a result of a strong free cash flow in the third quarter, our cash position is now $438 million.
<unk> is $207 million.
The third quarter, we accelerated the repayment of the final $36 million outstanding on the term loan bleeding that $230 million convertible notes as the only get outstanding on our balance sheet and further solidifying the strength of our financial position.
To pay off of the term loan also remove the restriction on $34 million in cash supporting our overall liquidity position as those funds transfer transitioned to cash and cash equivalents.
Balance sheet strength is one of the pillars of our approach to capital allocation and is further supported by the refinancing and extending the maturity of a revolving credit facility that also occur during the quarter.
Golfing credit facility now have a total capacity of $500 million add an improved borrowing costs and brings total liquidity for the organization to $938 million.
We view this facility as another tool available to us as we enter a period every investment within the business.
Reinvesting in organic growth is the second pillar capital allocation strategy.
We expect it will come to the forefront over the coming three year period, as we commence construction at hotmail.
Mood board with a triple or expansion project.
Capital returns represent the third pillar of our strategy and let slip to five seven to discuss this further.
Through the end of September we have returned nearly $90 million to shareholders through our base dividend and share buyback program. This year and are on track to return at least $103 million to shareholders or a minimum total returned healed a 3.6% in 2023.
It followed fields F five per cent in both 2021, and 2022 and you will bring total capital return to shareholders over a three year period to more than $450 million approximately 16 per cent of our market cap and something they are proud of.
R capital returns initiatives are generally meant to reflect the free cash flow profile of the business and goodbye back is a dynamic component to this strategy.
While we are entering a period of <unk>.
I've been definite and growth.
And currently yielding two per cent will continue to provide a baseline to our approach to capital returns.
Overall, our company remains in a strong financial position and we expect further free cash flow generation into your ends.
We are proud of our history of capital returns and going forward anticipate sharing opportunities.
And your organization.
Now I'll turn the call over to Bill Alright, Executive Vice President of operations with sustainability to review the operation.
Thanks Allison.
Committed as significant portion of my time this year at the operations working with that change the local stakeholders to insure operational delivery and continued improvement of H as it.
Is pleasing to see the desk is beginning to Bedford with a strong third quota, including record gulp adoption from.
Merry go and record average daily choice <unk>.
With a lot of work ahead.
But it seems a fully law and I'm delivering up production targets cause the reminder V.
For our dog into a review of the individual acids I Wanna start with a discussion about psyche.
Oh I see Gordon thing we do.
And every day is ensuring that page will get on site.
<unk> value <unk> focus.
Continuing to driving Crazy ladyship engagement and implementing simple tools to Nigel that people.
Well. This is <unk>. This is improving safety is also improving the quality of work and results in the field.
Production delivery is an integrated approach to a long term success.
And I wanted to check.
Vermont.
Production 57000 S ounces at nice at 13, 70 at tramps, reflecting the plan maintenance shutdowns that was successfully completed and the quota.
Is that he has noted.
First production from <unk> Dakota.
<unk> and we continue to inspect the project will contribute 10 to 15000 ounces.
It was a production title in the fourth quarter.
We've already spoken to the salt in it or in the future of government tip extension.
Currently no hot it with translating that excitement into an updated last month plan the operation.
So the opportunity to add additional additional processing capacity of chair, but essential to meaningfully improve lots of non-cash wise.
Mkay by extension.
Installation of that additional equipment will July the ramp up to full production levels into lighter in 2026.
We will continue stacking up so I <unk>.
Alright, and what was anticipated and to do that.
T R S.
Oh data <unk> tip of extinction and the Admiral trip expansion program.
Coming in the updated take me go pull up that will be released alongside updated <unk>.
The first quarter of 2024.
Exploration work is also I continued across the chair of the district, including at regional targets. So I can <unk>.
<unk>, thank you for furniture.
But it has had more than 20 years of my loss since 2016, which.
Which is testament to our continued success, replacing deflation and still expanding the ratio of space.
The full suite of me and longer term breath opportunities across the district.
There are opportunities to continue this track that I go to my loft extension going for.
Merry go.
<unk> impressive 83000 ounces.
<unk> as in third quota.
Quarterly record for the operation if it's more than 30 is Friday off.
I don't know I speak of 1100, and $6 branch Nicole water. That's reflected plan production spend <unk> capital intensive first half of the year.
As we have noted and we focused on delivering consolidated fully production gardens. Some of them marry golf played originally scheduled for Weiss stripping Red dog.
<unk> get the Mac you paid.
At this rate sequencing is incorporated into at 2024 budget forecasts. We expect initial production from Red Dot will be like for the second half of 24.
<unk> and <unk> out of production in 2025 in 2026.
This work will be incorporated into the updated last month plan for Merry go which will also be presented alongside multi you got it.
And the third quarter of 2024.
Initial review of the ongoing technical work completed it Merry go.
Their name on exploration programs to successful and replacing deflation.
The refresh lots of mine plan will incorporate first contributions from new millennium.
It also value, adding the potential to include a first minimum ratio statement for the Buffalo Valley target at the southern end of a Merry go property.
Each drugs and not enough extension targets are again, a reminder of the log capital intensity Nemo I know getting drive inherent across that <unk>.
Moving up saw 12 will talk about saving.
Jamie quota production was an improvement after the first half results.
But it will reflect the damn Tom as a result of upgrades to the regional power grid.
<unk> 20000 ounces of gold and I think 1300 92 branch in <unk> <unk>.
<unk>. So it was an improvement from this level in the fourth quarter as mine guides are expected that <unk>.
<unk> February it is important to note <unk> plan does not full cost the very high right. We have encountered in the San Antonio body.
Last few years, so hey.
With increased contribution to the mall medium Brian gap hanging malaria in 2024.
We expect <unk> to be Alon with it I'm Gonna Reserve guides and drive annual run rate production of approximately 80000 ounces <unk>.
As you are saying, we have some very sorry medium term drugs potential from the pool key targets on the horizon and technical work is now under way to evaluate opportunities to the dog has to be presented.
And a new <unk> in future.
The daytime we are focused on improving operating efficiencies and delivering increased mining and milling rights to ensure positive free cash my generation. Despite the new drive powered onto the operation.
<unk>.
Once again to live in an outstanding quota with 2.6 million ounces of silver production I'd like to get $30 bras as the processing plant average <unk> 4900 ton per day is.
It is a testament to detain minute focus on continual improvement so they're able to deliver this level of performance and cost control. Despite the period of currency fertility.
Dana.
Expiration continued in the third quarter.
We have placed some very <unk> Dakota, <unk>, including 190, <unk> intercept at 165 Grand per ton silver.
10.6% zinc.
As we continue to evaluate offer opportunities to extend morning lot from to chase has been paid in the near term.
<unk> presenting itself is a very compelling medium <unk>, Los <unk> going for it.
Moving on to slide <unk> Scott.
Off the closing the acquisition in the second quarter wait <unk> come in and make sure it works and soft preparations that holding on.
Part of our preparations dwarfs construction began info drilling program in Dakota.
With the <unk> initial years of demand Brian.
<unk> <unk> <unk> <unk>.
It is encouraging to see the world class nature of your body.
With all of it in the set of 70 grams per ton Golden 1.6% copper of 90 days.
My blogging project execution team as well as bad.
And includes bringing a number of key members of the <unk> <unk>.
Sulfur giant construction <unk>.
As a reminder, <unk> expected to average lots of mine production nearly 200000 answers Brown and go with the equivalent of the answers.
Six <unk> $600 all those branch at.
40 per cent sty, we expect demand will contribute an average annual free cash, but more than 65 million to access.
We are thrilled to have a development project of this caliber and <unk> and continued to advance towards the construction decision for the project mid next year.
Now turn back out of Daddy.
Thanks Bill.
<unk> were clearly excited about the future of our business and don't believe that today's share price performance reflects us.
We are on track for a strong fourth quarter.
To achieve both production and cost guidance charges, and we expect to present, a comprehensive portfolio update in the first quarter of 2024, including refresh the technical reports of Trippler, a miracle updated mineral reserves and resources and an optimized multiyear guidance profile.
While we are entering a period of reimbursement. It is important to note that our portfolio of golf projects features some of the highest returning lowest capital intensity projects in the sector.
Madden, a truly world class or body with first quartile costs and a compelling IRR in excess of 30% will move towards construction mid 2024, and we expect the project to deliver first production in 2027.
At our flagship trouble her mind, we delivered first production from the track next up a extension project just six years from discovery and for less than $70 million in capital, we see potential to expand the projects existing 1.7 million <unk> <unk>.
Space and meaningfully improve bold recoveries for incremental capital investment.
<unk>, new millennium in Buffalo Valley are showing potential as low Capex mine life extension opportunities.
And you have also see meaningful Expo exploration success at golf targets at both C. D <unk>.
We have the balance sheet to advance this multitude of both projects and see potential for meaningful expansion to our production profile as a result.
Combined with our track record of building assets successfully the business is well positioned to deliver value to our shareholders.
At the same time, we will not stop a relentless efforts to drive costs out of the business and will also continue to return capital to our shareholders alongside investment in our organic both pipeline in the near term.
We have a proven track record delivering high return Gulf projects on our excited to continue building on that strong reputation going forward.
With that I'll turn the line back to the operator for any questions.
Thank you Mister <unk>.
Now begin the question and answer session to join the question to you you might <unk> been one on your telephone keypad, you'll hear a tone acknowledging your request.
Speaker phone please pick up your handset before pressing any keys did Italia question. Please press star too.
The first question comes from Cosmos to let's see I D. C. Please go ahead.
Thanks, Eddie Alisonville and Alex.
Maybe my first question is on the 2024.
<unk> guidance as you mentioned you know 20th 24 production is gonna be lower your over here.
<unk> for giving us a bit of guidance in terms of 10 to 15 per cent below previous guidance, but could you clarify a little bit is it 10% to 15% based on the mid range of the previous guidance, which was 270 274 670 754 is it 10 to 15 below the lower.
Yeah. Thanks cause.
Is 10% to 15% to both the lower end and the high end of the range.
Okay.
And then looking further ahead I'm just taking some of your commentary here. It sounds like you know what check my tech pay the Glen and beach potential it's not gonna reach production until a full production.
Potential until 2026.
Sounds like a marigold red dot could come in 2025, So I'm just wondering you know.
The lower production is it.
Contained 220, 24, and we should see popes.
Hopefully several hundred thousand ounces potential again in 2025 or are we talking multi years in terms of it will potentially.
Potentially lower production, what we had previously thought about.
Yeah. Thanks, Thanks cause look we're obviously still working through in completing the in progress Technical report summaries.
And we're continuing to complete the work on our infill drilling the metallurgical tests work and the trade off studies and finalizing the pitch all optimizations. So I'm unable to give you a exact sense of the relative production profiles on an annual basis, However, what I would say.
<unk> inflection point for the operations and for the production profile.
Really will come into play as the grind Leach circuit comes online combined with heart Madden coming on line.
Okay, and then on that the Glen and each circuit I guess, you've talked about that in the past, but he didn't really talk about that in future, but you know you've talked about that.
Two three again.
Uhm.
Could you maybe talk about you know, what's the potential capex need might be and is that is that a go like is that it sounds like it is it sounds like you're pretty committed to it but it also sounds like you haven't made the final decision yet so I'm just trying to get a sense in terms of <unk> that decision part of this appointment.
<unk>.
Yeah, well it is a high probability we do pursue the grind Leach circuit. Obviously, we are finalizing the technical reports and with the release of the technical reports and the full definition of economics, including the capital estimate and a returns the decision will be made to <unk>.
Pursue the ground Leech circuit.
That is part of the work that is currently undergoing we do not as we look at our capital profile over the next three years, we do not expect a significant departure from what you already have incorporated into your estimates because the Brian Leetch circuit capital would be prior.
[noise] artist over investment and to see too, which would be delayed and so come into play in place of the C. Two capital that would've been deployed.
Deployed over that same period of time, plus or minus do the refinement of the <unk> and the technical.
Mmm, great and that you know at least well into my next question in terms of.
To talk about three year growth capital investment period, but at the same time, you say you know capital N Lowe L. O W. <unk> covered her intensity high returns organic projects. So for those investors are somewhat concerned about cutbacks and Catholics.
Catholics for it's 123 million in terms of budget it in 2023.
I guess my question is shall.
Should we be concerned about capex is it gonna go higher than 2023 or is it you know.
Right now of model actually lower than 2024.
Should I be concerned at all about any kind of Catholics increases due to your comment on three year growth capital investment period.
Yeah, I like what is I look at the next three years.
<unk> is fully aware of a lot of the large chunks of capital ahead of us. So we have hot Madam, which we are responsible for seven per cent of the Capitol estimate for.
We have the grind Leach circuit, which we just covered together.
And those represent the largest component of the growth capital associated.
With our Gulf profile in the coming three years.
<unk> will fully define all these figures to a higher level of fidelity.
Of course, and then maybe one last question headaches in terms of Capex for half of that it sounds like you know you're gonna make a decision by mid 20th 24th So in your your budgeting and the study started coming out and and the it all guidance for 2024, we should expect some kind of hot.
Number for 2024 alright.
<unk>.
Yeah, Let me pass out over a thousand to cover.
Alright.
Hi, Alison.
Hi, <unk>.
Thanks for the question, Yes, we will definitely be including the Catholics expected for Hot Madden any issue at in the afternoon here Uhm. So you can anticipate that it will be released at that time.
Right.
Thanks for answering all my questions, Eddie Alisonville anything Alex and I'll pass it up.
Thanks <unk>.
Thank you.
The next question comes from <unk>.
The bank. Please go ahead.
<unk> I.
I guess most of my questions have been answered.
One of the questions asked by <unk>.
At <unk> and I'll also see you're you're looking at differing stripping at Red Dot into 2024.
Does that also mean that <unk> could be kind of first off we need for 2024.
I know, you're not giving giving guidance, yet, but any kind of color on that would be appreciated.
Yeah sure look I'll I'll pass that over to Bill what I'll say is given red Dot is is second have waited production is likely going to be waited further to the second half and 2024 on <unk>, but when he passed it over to bill for more color.
Yeah, Yeah, so so with with <unk> production <unk> go up commensurate, but along with that we're doing a lot of work associated with <unk> with some good success associated with improving the productivity.
Associated with the flight.
So we're actually improving on a lot of France.
<unk> <unk>.
At <unk>, but we'll definitely say the iced tea can come up with that reduction.
And go production for the.
No surprises with that.
So bill just on my current again.
Yeah that that makes sense, so at Red dog like I mean, how much more additional stripping is is kind of required add red dot.
I mean in terms of guns or in terms of kind of maybe in terms of orders can you give us some color as to what needs to be in place going in Detroit 24, two complete red dark there'll be done by I guess, the second half or is that gonna continue.
It'll be it'll be the mail it'll it'll be the middle of 20 full we get into the all the ozone first nitriles unproper, so essentially with light, sorry, a quarter and a half and that.
<unk>. Please just directed to not a part of the mind.
Uhm supporting the cheese production.
The words, it's nothing's changed in terms of the price falls or anything it's just about a quarter and a half of stripping.
Got it and I appreciate that.
And then just switching guys to check.
Check my <unk> as you wait for a decision on dried leaf circuit are you looking to continue mining and stockpiling or would you prefer essentially all mighty <unk> 45.
I will still continue mining, we just want the money gets the rights that was rejected previously.
Increasing the morning, right to the rights of rejected before but we will continue mining and that all that's coming out between now and when we took that that potential client.
Uhm expansion will be going onto the hate Blaich previously plan.
Got it so that's it for me guys and thanks for taking my questions.
Thanks for this.
The next question comes from <unk> with I B C capital like it. Please go ahead.
Hi, guys. Thanks for taking my question Yeah, a lot of my questions have been answered as well, maybe maybe just and I know you don't want to to do this necessarily but I'm struggling a little bit with the 10% to 15% that you mentioned in 2024 can can.
You put it in context, a little bit in terms of the split between cheaper a marigold in terms of where the bulk of the impact will be and I assume that there will be an impact on marigold guidance versus the the prior unlucky.
Is that a fair defense.
Yeah, what what looked like I think it's a bit early until we release our guidance targets to give you. The exact split <unk> impact that'll have to come through uhm as our technical reports are finalized and our budgets are closed out that being said if you thought about check.
<unk> extension is 90000 ounce per year run right operation Uhm, and you took a discount to the amount of balance is being produced there annually.
And then a delay of half a year out of Red Dot. It should begin to give you a sense that you know the distribution.
You know is is largely I can't give you an exact percentage, but certainly split.
Between both operations and burdened by both operations.
Okay that that's also that was gonna be my my follow up on a check like that the and the contribution expected for for next year. So would it be fair to say I think the guidance was 15 to 20000. This year would would that be a fair sort of run right to look at for ongoing operations to check my 10 minutes and 2024.
Yeah. This year. The Q4 is gonna operate at 10 to 15000 ounces is the target next year. We are currently still working through what I'll call is the tradeoff studies of how much in terms of production.
Gets contributed from check my <unk> and get placed on the leech pad. The key again here and I'll I'll make sure. We reiterated is that with track Mac tap a there's a 1.7 million ounce reserved.
That reserve has grown substantially as we have continued our drilling and both our.
Step out drilling and until drilling converting some of the resources to reserves.
That is what's triggered this decision to build the Brian Leetch circuit because at the moment. All these answers are going to be stacked at on the heap Leach fat and get recoveries in the range of 60 per cent.
By installing a blindly circuit, we could get recovers north of 80 per cent and as you think about the quantum of balance is there.
It's M P V accretive for us to do so and so we may be sacrificing a slower.
Taking on a slower ramp up.
Check my debit in exchange for any of the accretion and so what we're doing right now in the tradeoff studies, you're seeing how many ounces cause we should stack at the moment and how many ounces are going to go through the <unk> circuit and so hopefully within the coming two months you will have a very good picture as to what.
That distributions.
Okay that makes sense. So it's not so much you're looking at whether or not to do it. It's the the I suppose the pace of of putting the material on the heap leaches.
Versus the longer term nah of appreciation from running them through the plant that you're looking at <unk>.
Cause I hear Ya right yeah, okay.
Is is there is there still a scenario being considered where you you could see let's say full speed production on the leach pads for the next couple of years, while you'll get the the expansion done at the plan or is that something that's already been tossed into consideration.
The the preliminary work, we're seeing at the moment and again. This is work in progress indicate that it is more creative to.
To to wait for the grind Leach circuit to get the full run rate levels is that work is tied up at the conclusions change for any reason certainly will evaluate the other option, but at this stage, we're working under the impression that will be the link to coinage circle.
Okay <unk> last one for me just a comment on uhm, if if we're talking about 24 now any comment on C V. Given the lower production. This year should we expect an impact versus the 2024 I look for C V as well.
Yeah, let me pass that over to to <unk>.
Yeah I think.
My reference to the fact that uhm save each day with Fabulous mine, particularly in the Saint toy.
Area I'm also a continuing toman nah continuing to do some exploration, we see ourselves on the H and that's where the high grade was coming from.
So what that will maintenance of adoption, we expect to stay around that Ivy thousand killer apps pot and what we're doing we're ramping up bonding rights and ramping up at your privacy rights to keep it as a <unk> that is that is a slot redaction versus what we were projecting last year.
<unk> okay.
And white complaining network at the moment.
To pull it together, but it will be a reduction but not my job.
Okay, great. Thank you very much I'll.
Thanks, Mike.
This concludes the question and answer session I would like to turn the conference back over to Miss defeat.
Thank you operator, and thank you to everyone.
Participating have a great day.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
[noise].