Q4 2023 Pan American Silver Corp Earnings Call

Good morning, ladies and gentlemen, and welcome to the Pan American Silver fourth quarter 2020 date Unaudited results conference call and webcast. At this time all lines are in a listen only mode. Following the presentation, we will conduct.

Operator: Good morning, ladies and gentlemen, and welcome to Pan American Silver's fourth quarter 2023 unaudited results conference call and webcast. At this time, all lines are in a listen-only mode.

Operator: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, February 22, 2024. I would now like to turn the conference over to Siren. Thank you.

A question and answer session.

I'm joined this call you were quite immediate assistance. Please press star zero for the operator. This call is being recorded on Thursday February 22nd 2012.

Before I would now like to turn the conference over to Steven. Thank you. Please go ahead.

Siren: Thank you for joining us today for Pan American Silver's Q4 and full year 2023 conference call. This call includes forward-looking statements and information and makes reference to non-GAAP. Please see the cautionary statements in our MD&A news release and presentation slides for our Q4 2023 audited results, all of which are available on our website. I'll now turn the call over to Michael Steinman, Pan American's President and CEO. Thanks, Hiram, and thank you, everyone, for joining our call today.

Steven: Thank you for joining us today for Pan American Silver's Q4, and full year 2023 conference call. This call includes forward looking statements and information and makes reference to non-GAAP measures.

Please see the cautionary statements in our MD&A news release and presentation slides for our Q4 2023 audited results all of which are available on our website.

Steven: I'll now turn the call over to Michael Steinmann Pan American's, President and CEO.

Michael Steinmann: Thanks, Sarah and thank you everyone for joining our call today.

Michael Steinman: The past year was a dynamic period of growth and change for Pan America. He added four new mines in two new jurisdictions. We streamlined our portfolio through the sale of non-core assets, and we announced a preliminary economic assessment for La Corada's car. With the integration of the assets we acquired from Yamana now complete, we continue our focus on improving margins through safe, cost-efficient operations, harvesting synergies, and further portfolio optimization. In 2023, the nine-month contribution of the assets we acquired resulted in both an 11% increase in silver production and a 60% increase in gold production over 2022 and resulted in record revenue for both Q4 and for the full year. Operating cash flow for Q4 was $167.4 million, net of $32.4 million in taxes paid and inclusive of $56.1 million of cash from working capital. The company recorded a net loss of 19 cents per share in Q4, driven by three non-cash charges, the first relating to the final purchase price allocation for the acquired Yemana assets.

Michael Steinmann: The past year, but the dynamic period of growth unchanged for Pan American.

Michael Steinmann: We added four new mines into new jurisdictions, we streamlined our portfolio through the sale of noncore assets, and we announced the preliminary economic assessment for the luck, let us car.

Michael Steinmann: But the integration of the assets, we acquired from Yamana now complete we continue our focus on improving margins to safe cost efficient operations harvesting synergies and further portfolio optimization.

Michael Steinmann: In 2023 to nine months contribution of the assets, we acquired drove an 11% increase in silver production and a 60% increase in gold production over 2022 and resulted in record revenue for both Q4 and for the full year.

Michael Steinmann: Operating cash flow for Q4 was 167 points.

Michael Steinmann: $4 million net of $32 $4 million impacts us paid and inclusive of $56 $1 billion of cash from working capital.

Michael Steinmann: We recorded a net loss of <unk> 19 per share in Q4, driven by three non cash charges.

Michael Steinmann: First relates to the final purchase price allocation for the acquired Yamana assets.

Michael Steinman: Pan American finalized the Purchase Price Allocation, or PPA, asset values for the Yamana Gold acquisition in Q4 2023, resulting in a $16.5 million improvement over previously reported Q2 2023 and Q3 2020. FRS accounting standard reporting rules for business acquisitions require that all accounting impacts to earnings from the finalization of PPA asset values be retrospectively recast to prior quarters. For example, the additional $16.5 million or $0.05 per share in earnings for the year related to revised depreciation charges for the final PPA asset values must be retroactively applied to Q2 and Q3 rather than applied to Q4 2023 earnings. There's no impact on full year 2023 or, The second factor impacting Q4 earnings is a $36.2 million impairment charge for the crushing and agglomeration plant of Sawin.

Michael Steinmann: American finalized the purchase price allocation or PPA.

Michael Steinmann: Asset values for the amount of gold acquisition in Q4 2023.

Michael Steinmann: Resulting in a $16 $5 million improvement to previously reported Q2 2023 and <unk>.

Michael Steinmann: Q3 2023.

Michael Steinmann: <unk> accounting standard reporting rules for business acquisitions required at all accounting impacts to earnings from the Finalization of PPA asset values.

Michael Steinmann: Retrospectively recast prior quarters.

Michael Steinmann: Result, yes, additional $16 $5 million or <unk> <unk> per share in earnings for the year related to revised depreciation charges, but the final PPA asset values.

Michael Steinmann: Be retroactively applied to Q2, and Q3, rather than applied to Q4 of 2023 earnings.

Michael Steinmann: There is no impact on full year 2023 earnings.

Michael Steinmann: The second factor impacting Q4 earnings.

Michael Steinmann: The $36 $2 million impairment charge for the crushing and agglomeration plant so window.

Michael Steinman: The plant was constructed prior to Pan America's purchase of the mine in 2019, and we have never operated it. The third factor was a $13.8 million closure and decommissioning expense largely due to the revised reclamation estimate at Alamodorado in order to withstand high-intensity rainfall events through the installation of impermeable barriers for the waste dump and enhanced site drainage system. The closure of the tailing storage facility at Alamodorado has been successfully completed. The impact of the impairment and the closure of the commissioning liability was removed from the just adjournment.

Michael Steinmann: Plant was constructed prior to Pan American purchase of the mine in 2019.

Michael Steinmann: Have never operated.

Michael Steinmann: The third factor was the $13 $8 million closer and decommissioning expense largely due to the revised reclamation estimate at Alamo Dorado in order to withstand high intensity of rainfall events. So the installation of impairment both barriers for the waste dump and enhanced site training systems.

Michael Steinmann: The closer of the tailings storage facility at Alamo Dorado has been successfully completed.

Michael Steinmann: The impact of the impairment and the closer of decommissioning liability was removed from adjusted earnings.

Michael Steinman: Production in 2023 was pre-released on January 17, 2024, and largely in line with our expectations. Silver was slightly below our guidance range at 20.4 million ounces, while gold was within guidance range. The $882.9 million shortfall in thermal production was largely due to the ventilation constraints.

Michael Steinmann: Production in 2023 pre released on January 17, 2024, and largely in line with our expectations.

Michael Steinmann: So we have a slightly below our guidance range at 24 million ounces, while gold was within guidance range at $882 $9000.

Michael Steinmann: Shortfall in silver production was largely due to the ventilation constraints at La Colorado together with the temporary suspension of operations in October 2020.

Michael Steinman: La Colorado, together with the temporary suspension of operations in October 2020, we're looking forward to the completion of the new ventilation system in mid-2024 in order to access the higher-grade mine zones to the north. Excavation of the new 5.5 meter concrete line ventilation was completed.

Michael Steinmann: We're looking forward to the completion of the new ventilation system mid 2024 in order to access the higher grade mine zones to the northeast.

Michael Steinmann: Excavation of the new five five meet their concrete lined ventilation shaft was completed the final depth of 581 meters on schedule in December 2023, and.

Michael Steinman: The final depth of 581 meters is on schedule in December 2023, and the remaining key pieces of infrastructure, two large exhaust fans to draw the hot, humid air out of the mine, are expected to be installed by the end of Q2. Thus, the first two quarters of this year will continue to reflect a challenging operation. We expect significant improvement in the second half of the year with high throughput and lower costs thereof. However, the production shortfall at La Clorada and higher mining costs at both La Clorada and Varun resulted in cash costs and unsustaining costs for our silver segment operations coming in above our guidance range for 2020. The increase was partially offset by lower costs at Cerro Moro due to higher than expected gold by-product credits and at San Vicente from lower costs and higher silver prices.

Michael Steinmann: The remaining key pieces of infrastructure <unk> funds to draw the hot humid air out of the mine are expected to be installed by the end of Q2.

Michael Steinmann: The first two quarters of this year will continue to reflect the challenging operational conditions expect.

Michael Steinmann: We expect significant improvement in the second half of the year with high throughput and lower costs thereafter.

Michael Steinmann: The production shortfall at La Colorado, and higher mining costs at both La Colorado in Guangdong resulted in cash costs and all in sustaining costs for our silver segment operations coming in above our guidance range for 2023.

Michael Steinmann: The increase partially offset by lower costs et cetera model from hired unexpected gold byproduct credits.

Michael Steinmann: Suddenly center from lower costs and higher silver production.

Michael Steinman: All production and gold segment all-in sustaining costs were within our guidance range for 2023, although cash costs for the gold segment came in above the guidance range, largely due to the lower gold production at LTI. As disclosed in the third quarter of 2023, coal grades mined at El Peon were lower than we had anticipated in certain high-grade sections of the country.

Michael Steinmann: Both production and coal segment, the all in sustaining costs were within our guidance range for 2023.

Michael Steinmann: Cash costs for the gold segment came in above the guidance range largely due to the lower gold production at El pen yet.

Michael Steinmann: As disclosed in the third quarter of 2023 cold grades mined at helping Jan were lower than we had anticipated in certain high grade sections of the mine.

Michael Steinman: We are increasing the drill density at El Peon after drilling fell behind late in 2022 and early 2023 due to a change in a contract by Yaman. We expect to provide more information on El Peon with the Mid-Year Reserve Update. We released our guidance for 2024 on January 7. In 2024, we expect to produce between 21 and 23 million ounces of silver and between 880,000 and 1 million ounces of coal. All interstaining costs for the silver segment are expected to be between $16 and $18.50 per ounce, and between $14.75 and $15.75 per ounce for the gold circuit.

Michael Steinmann: We are increasing the drill density to open after drilling fell behind late in 2022, and the early 2023 due to a change of a contracted by Yamana.

Michael Steinmann: We expect to provide more information on alpine young with the midyear reserve update.

Michael Steinmann: We released our guidance for 2024 on January 17.

Michael Steinmann: In 2024, we expect to produce between 21 of 23 million ounces of silver and between 880001 million ounces of gold.

Michael Steinmann: All in sustaining costs for silver segment are expected to be between 16 and $18 50 per ounce.

Michael Steinmann: Between 40, and 75 and $15 75 per ounce vertical segment.

Michael Steinmann: I chuckled, but you know we are expecting processing rates of approximately 8500 tonnes per day at staple gold recovery rates around 96%.

Michael Steinman: At Jacobina, we are expecting processing rates of approximately 8,500 tons per day, with stable gold recovery rates around 96%. The new carbon-in-pulp tanks were mechanically completed, and the new concentrate leach system began operating in late 2020. We are undertaking a comprehensive optimization study of Jacobina to evaluate alternative mining methods and enhancements to the processing facility to optimize the long-term throughput and economics of that facility.

Michael Steinmann: A new carbon in pulp tanks for mechanically completed and the new concentrate Leach system began operating late 2023.

Michael Steinmann: We are undertaking a comprehensive optimization study of Chuck Obinna evaluate alternative mining methods and enhancements to the processing facility to optimize the long term throughput and economics of that mine.

Michael Steinmann: At LP Neon, we are assuming that grade and throughput rates will be.

Michael Steinman: At El Peon, we are assuming that grades and throughput rates will be similar to what we realized in the second half of 2023, pending the new infill drilling results. We expect to complete mining at Dolores by Q3 2024 with residual leaching to follow for several years thereafter. Silver production is expected to be largely back and loaded from improved ventilation conditions at La Colorado and an expected improvement in grades at Cerro Moro as we access and bring into production the Natty satellite deposit, which is located 25 kilometers from the plant. Costs will reflect that production profile being heavily weighted to the first two quarters and significantly decreasing in the back half of 2024, as shown in the quarterly operating outlook provided with our Q4 disclosure.

Michael Steinmann: Similar to what we realized in the second half of 2023 pending the new infill drilling results.

Michael Steinmann: We expect to complete mining at Dolores by Q3, 2024 with residual leaching to follow for several of the year start off there.

Michael Steinmann: Silver production is expected to be largely back end loaded from improve ventilation conditions that lack of that order.

Michael Steinmann: And an expected improvement in grades et cetera model as we access and bring into production that Matisse satellite deposit, which is located 25 kilometers from the plant side.

Michael Steinmann: Costs will reflect that production profile being heavily weighted to the first two quarters and significantly decreasing in the back half of 2024 as shown in the quarterly operating outlook provided with our Q4 disclosure.

Michael Steinmann: We also expect to spend between $295 billion to $310 billion on sustaining capital and another $80 million to $85 million on growth projects, primarily for advancing the <unk> Con <unk>.

Michael Steinman: We also expect to spend between $295 to $310 million on sustaining capital and another $80 to $85 million on growth projects, primarily for advancing the Lackawanna Scarn, completing the tailing filtration project at Waran, finishing the Pace Backfill facility at Bell Creek, and completing some plant upgrade projects initiated by Yamana Jacoby. Sustaining capital is largely to expand tailings dams and leach pads, to extend underground mine ventilation systems, and open pit mine waste dumps.

Michael Steinmann: Greeting the tailings filtration project that Ron finishing the paste backfill facility at Bell Creek, and completing some plant upgrade project initiated by Yamana Chuck Op units.

Michael Steinmann: Sustaining capital is largely to expand tailings dams and leach pads.

Michael Steinmann: Underground mine ventilation systems.

Michael Steinmann: And open pit mine based pumps for exploration to replace an overhaul mobile equipment and for certain operating lease payments.

Michael Steinman: Thank you. Turning now to our strategic initiatives, in January, we filed an updated technical report for our Lackawannada property, which included the preliminary economic assessment for the Lackawannada current project. Our objective is to provide investors with exposure to silver, and Tascarn provides that exposure on scale. Annual silver production is estimated to average 17.2 million ounces during the first 10 years.

Michael Steinmann: Turning now to our strategic initiatives in January we filed an updated technical report.

Michael Steinmann: Luckily our other property, which included the preliminary economic assessment for the luck, let us corn project.

Michael Steinmann: Our objective is to provide investors with exposure to silver and discount provides that exposure and scale.

Michael Steinmann: And while silver production is estimated to average $17 2 million ounces during the first 10 years.

Michael Steinman: It is also expected to produce 427,000 tons of zinc annually during that period. Given the volume of base metals in the deposit, we are assessing interest from base metal producers and other parties to explore long-term partnerships to develop this polymetallic project. We are focused on the large amount of anticipated silver production from this deposit. Turning to Escobar, the new government took office in Guatemala in January 2024, and we had our first meeting with the new Ministry of Energy and Mines, or MEM, on February 7th, 2024. The meeting for the ILO 169 consultation was held yesterday, on February 21st, with the newly appointed Vice Minister of Energy and Mines and Chinco representatives, during which a presentation on the observations of the SINCUS-appointed consultants was communicated. We look forward to receiving the reports and working with the MAM to ensure accurate information is communicated to SHINCA participants in the consultation process. As usual, we are not providing a time frame for completion of the consultation or a potential restart of the meeting.

Michael Steinmann: It is also expected to produce 427000 tons of zinc annually during that period.

Michael Steinmann: Given the volume of base metals in the deposit.

Michael Steinmann: <unk> interest from base metal producers and other capable parties to explore long term partnerships to develop this poly metallic project.

Michael Steinmann: We are focused on the large amount of anticipated silver production from this two causes.

Michael Steinmann: Turning to ask about.

Michael Steinmann: The new government took office in Guatemala in January 2024, and we had our first meeting with the new Ministry of Energy and mine sold them on February seven 2024.

Michael Steinmann: Meeting for the Ilo 169 consultation was held yesterday on February 21, we can.

Michael Steinmann: Newly appointed Vice Minister of energy and mines unchanged Representatives.

Michael Steinmann: During which a presentation on the observations of the zinc has appointed consultants plus communicated.

Michael Steinmann: We look forward to receiving the reports and working with demand to ensure accurate information is communicated to the schenker participating in the consultation process.

Michael Steinmann: As usual, we are not providing a timeframe for completion of that consultation or the potential restart of the mine.

Michael Steinmann: But America financial position strengthened over 2023.

Michael Steinman: Pan America's financial position strengthened over 2023. At year end, our cash and short-term investments reached a record of $440.9 million, and we have the full $750 million available under our UNDRAWN revolving sustainability-linked credit facility. Total debt of $801.6 million was mostly related to two senior notes we acquired through the Yemana acquisition.

Michael Steinmann: At year end, our cash and short term investments reached a record of $440 $90 million.

Michael Steinmann: And we had the full $750 million available under our Undrawn revolving sustainability linked credit facility.

Michael Steinmann: Total debt of $801 6 million was mostly related to two senior notes, we acquired towards the amount of acquisition.

Michael Steinmann: We expect cash flow generation to improve in 2024 actually realize the contribution of a full year of the four new mines and cost savings through our sandwiches.

Michael Steinman: We expect cash flow generation to improve in 2024 as we realize the contribution of a full year of the four new mines and cost savings through synergies and lower care maintenance costs. However, we expect cash flow to be back-end weighted given the production and associated cost profile I previously outlined. As well, we expect approximately half of the estimated $95 to $100 million in tax payments will be paid in the first quarter of 2020.

Michael Steinmann: Lower maintenance costs.

Michael Steinmann: However, we expect cash flow to be back end weighted given the production and associated cost profile I previously outlined.

Michael Steinmann: As well, we expect approximately half of the estimated $95 million to $100 million of <unk>.

Michael Steinmann: <unk> payments will be paid in the first quarter of 2024.

Michael Steinmann: Yesterday, we announced our intention to begin buying back some of our shares you have been opportunistic in the past and making acquisitions.

Michael Steinman: Yesterday, we announced our intention to begin buying back some of our shares. We have been opportunistic in the past in making acquisitions. With the current market dislocation between our equity and asset valuations, we believe that a share buyback is a prudent and accretive use of capital, and we will apply the same opportunistic approach to repurchasing Pan American shares. We also announced yesterday a cash dividend of 10 cents per common share in line with our policy. In 2023, dividends paid totaled $130.4 million.

Michael Steinmann: Current market dislocation between our equity and asset valuations, we believe that share buyback is a prudent and accretive use of capital and we will apply the same opportunistic approach and repurchasing pan-american chairs.

Michael Steinmann: We also announced yesterday, a cash dividend of <unk> 10 per common share in line with our policy.

Michael Steinmann: In 2023 dividends paid totaled $134 million.

Michael Steinmann: Before opening up for questions I would like to welcome Scott Campbell with coming back to join the company in April Scottsville help oversee the company's operations.

Michael Steinman: Before opening up for questions, I would like to welcome Scott Campbell, who is coming back to join the company in April. Scott will help oversee the company's operations and lead the Corporate Projects Group, reporting to our Chief Operating Officer, Steve Paz. The senior operational expertise will be very valuable as we work to optimize our portfolio and advance our growth project. On behalf of the entire team at Pan American, I would also like to thank George Greer for his contributions to the company over the past 17 months. George, we wish you all the best for your retirement coming up later this year. Together with the other members of our management team, we would now be happy to take your questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Did you have a question? Please press the star followed by the 1 on your telephone keypad.

Scott Campbell: Fleet, the corporate projects group reporting to our Chief operating Officer, Steve Busby.

Scott Campbell: Cassini operations expertise will be very valuable as we work to optimize our portfolio and advanced our growth projects.

Scott Campbell: On behalf of the entire team at Pan American I would also like to thank George career for his contributions to the company over the past 17 years.

Scott Campbell: We wish you all the best for your retirement coming up later in this year.

Scott Campbell: Together with the other members of our management team, we would now be happy to take your questions.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on your telephone keypad.

Operator: The U.S. Embassy in the Philippines, Don Tumazos, acknowledges your request. Questions will be taken in order. Should you wish to cancel your request, please press the star followed by the, If you are using a speakerphone, please leave the handset before pressing, Once again, that is the star and one to ask a question. Your first question comes from the line of Cosmos Chiu from CIBC, and many others. Thank you. This concludes the briefing. Thank you. Thank you. Thank you. Thank you. Thanks, Michael and team. And thanks, George, as well. Happy retirement!

John Pollok: John Pollok.

Speaker Change: Questions will be taken in the order received and should you wish to cancel your request. Please press the star followed later too.

John Pollok: Thank you speaker phone please flip the handset before pressing any keys once again that is star and wanted to ask a question.

John Pollok: Your first question comes from the line of Cosmos <unk> from CIBC. Please proceed.

Cosmos: Thanks, Michael and team.

Cosmos: Thanks, George as well happy retirement.

Cosmos: Maybe my first question is on your quarterly guidance, Thanks, Michael for providing us with quarterly guidance as we can see it improves quarter over quarter. My question is.

Cosmos Chiu: Maybe my first question is on your quarterly guidance. Thanks Michael for providing us with quarterly guidance. As we can see, it improves quarter over quarter. My question is, you know, I understand the second half is going to be better than the first half, but I do see a big drop or improvement in terms of silver costs in Q4. Just wondering how you're going to...

Speaker Change: I understand the second half is going to be better than first half.

Speaker Change: Do you see a big drop or improvement in terms of silver costs. In Q4, just wondering how youre going to get I think it's a fairly big drop EBIT from Q3 into Q4 in terms of following sustain.

Michael Steinman: I think it's a fairly big drop even from Q3 into Q4 in terms of foreign sustaining costs. Yeah, Cosmos, thanks. And, yeah, there's a big, big drop, of course, heavily impacted by La Colorado's changes to, you know, back to bigger production, more ounces after the ventilation circuit is back working. And, of course, that was the reason for the high cost last quarter. So that big impact will be reversed, and that's why it's so big. But I'll hand it over to Steve to give us a bit more call around the cost side. Yeah, Cosmos, I think I would add the other thing to look at is Cerro Moro.

Cosmos: Sustaining cost for silver.

Speaker Change: Yes, Cosmos thanks, Ed.

Cosmos: Yes, that's a big big drop.

Cosmos: Of course heavily impacted by biological allowed us.

Cosmos: Changes to back to two Baker production more ounces. After depopulation circuit is back working of course that was the reason for the high cost last quarter. So that's a big impact.

Cosmos: There'll be reversed and Thats why its so big but I'll hand, it over to Steve to give us a bit more color on the cost side, Yes, Cosmos I think I would add the other thing to look at it is on Cerro Moro, we have backend loaded gold production in Q4, it's quite high and Thats the byproduct credits.

Steve: We have a back-end loaded gold production in Q4. It's quite high, and that's a byproduct credit there. So that's really driving a big part of the Q4 change. Great, thank you. And then, Michael, as you mentioned, there were a number of one-time items in your earnings in Q4, including Shawindo, the crushing agglomeration plant, a $36.2 million write-down. I'm just wondering, was that something that you could have sold? Did, you know, no one want it, or did you try to sell it?

Steve Busby: So thats really driving a big part of the Q4 change as well.

Speaker Change: Great. Thank you.

Speaker Change: And then Michael as you mentioned.

Speaker Change: There were a number of one time items in your earnings in Q4.

Steve Busby: Including show window, crushing agglomeration plant $36 $2 million write down.

Steve Busby: I'm just wondering was that something that you could have sold did.

Cosmos: No one wanted or did you try to sell it.

Cosmos: Okay, and then we will start and then Steve will have more call. It today is this plant has been built by Tahoe before we actually purchased the company.

Michael Steinman: Again, I will start and then Steve will add more color to this. This plant was built by Tahoe before we actually purchased the company. We had obviously looked at that plant during operation. We opted for a solution of blending between coarse and fine grain material as a way more economical solution than using the plant. So the plant is now, let me just think, probably seven years old or eight years old. But we have never used it.

Cosmos: We had obviously looks at that plant during operation.

Cosmos: Opted for a solution blending between coarse and fine grained materials.

Cosmos: More economic solution and using the plan. So the plant is now let.

Speaker Change: Let me just thank.

Speaker Change: Probably seven years old to 80 years old.

Speaker Change: They have never used it.

Michael Steinman: And I think where we stand right now and with the blending solutions that we found, we have come to the conclusion that we will not turn it on. Looking forward, but Steve, maybe, will give us more detail. Yeah, Cosmos, Michael's precisely right.

Speaker Change: I think where we stand right now on Victor blending solutions that we found we come to the conclusion that it's that we will not.

Speaker Change: And I'll turn it on.

Speaker Change: Looking forward, Steve might be able to detail.

Steve Busby: Yes, Cosmos Michaels precisely right and really the issue was we were trying to decide we're trying to look at all the alternatives of treating the high clay orders of <unk> window and looking at the blend is looking at the rock availability and so we kind of kept that plant in check just in case.

Steve: And really, the issue was we were trying to decide; we were trying to look at all the alternatives for treating the high-clay ores of Shiwindo and looking at the blends, looking at the rock availability. And so we kind of kept that plant in check just in case we didn't have enough rock, that may have been the alternative to go to. Now we're more confident with our blending capabilities because we understand the percolation characteristics of the heap.

Speaker Change: We didn't have enough rock that may have been the alternative to go to now we're more confident with our blending capabilities, we understand the percolation characteristics on the heap. So we've made the decision we didn't need that plant anymore.

Steve: So we've made the decision we don't need that plant anymore. Yeah, okay. I'm just wondering if I used to cover Tahoe as well. I know it was no longer needed. I'm just wondering if it's something that I can actually just monitor, you know, in terms of the cards.

Speaker Change: Yeah. Okay, I'm, just wondering I know I used to cover Tahoe as well I know it was no longer need I'm just wondering if it's something that your cash and just monetize.

Speaker Change: In terms of yes.

Speaker Change: Wanted.

Speaker Change: Yes, if I could add cosmos, we do plan to market that equipment.

Michael Steinman: Yeah, if I could add Cosmos, we do plan to market that equipment. There's some of it we want to keep for other developments we have internally, but there's, you know, large pieces of crushing and agglomeration equipment that we will try to market over the next year or so. And then maybe one last question on Delores, you know mining will likely come to an end soon. This is going to be a residual leach sort of operation. Can you maybe talk about the ongoing, what would you call it maintenance costs or closure costs that you will you will need to spend and then, as you enter the closure period, you know what you need to do in terms of ensuring the safety of the site, the, you know, structural integrity of the leach pads, and making sure that there are no accidents. Yeah, Cosmos.

Speaker Change: There is some of it we want to keep for other developments, we have internally, but there is.

Speaker Change: Large pieces of crushing.

Speaker Change: <unk> equipment that we will try to market over the next year or so.

Speaker Change: Okay.

Speaker Change: And then maybe one last question on Dolores as you mentioned.

Speaker Change: Mining will likely come to an end soon.

Speaker Change: This is going to be a residual leach sort of operation can you maybe talk about the ongoing what would you call maintenance cost of closure costs.

Speaker Change: You will you will need to spend.

Speaker Change: And then as you enter the closure period.

Speaker Change: What do you need to do in terms of ensuring the best.

Speaker Change: Safety of site.

Speaker Change: The structural integrity of the leach pads, and making sure that no accidents kind of hospital.

Steve: That's a great question, Mike. I can tell you we're focused on trying to structure the operation when it's in this residual leaching as efficiently as we can. We will absolutely maintain all of the monitoring systems, all of the geotechnical monitoring, and elaborate monitoring that we have on the heaps and the dumps during the residual leaching. Those aren't expensive items or instruments to run.

Speaker Change: Okay.

Cosmos Chiu: Yes Cosmos.

Cosmos: Great question, Mike I can tell you we're focused on trying to structure the operation more knudsen residual leaching as efficiently as we can we will absolutely maintain all of those.

Cosmos: Monitoring systems all of the geotechnical monitoring elaborate monitoring that we have on the heaps in the dumps during the during the residual leaching those arent expensive items instruments to run.

Steve: The real cost is going to be on just circulating solutions through the heat. And, and then the big question is going to be cyanide concentration for the solubility of the silver. The gold's pretty well solubilized, so it comes out as you, as you rinse.

Cosmos: The real cost is going to be on just circulating solutions through the heat.

Cosmos: And then the big question is going to be cyanide concentration for the solubility of the silver the gold's pretty well solubilized. So it comes out as you as your rents, but the silver you've got to you got to keep the cyanide concentrations.

Cosmos Chiu: But the silver, you've got to keep the cyanide concentrations at a critical level. So that's really going to be what we monitor, what we do, and how we operate. We'll do it as streamlined as we can. We've made some estimates in this guidance, particularly in Q4, where it's all residual leaching at that time. But until we get there and we actually structure it and see how it goes, it may change from that point. Thanks, Michael and Steve. Those are the best. Thanks once again.

Cosmos: Critical level, so that's really going to be what we what we monitor what we what we operate we'll do it as streamline as we can we've made some estimates in this guidance, particularly in Q4 works all residual leaching at that time, but until we get there where you actually structure and see how it goes.

Cosmos: It may change from that point.

Speaker Change: Great. Thanks, Michael and Steve those are all the questions I hope.

Speaker Change: Thanks, a lot again.

Operator: Thank you, and your next question comes from the line of Tian Tumazos from Tian Tumazos Independent Research. Bye. Thank you for all the explanations.

Speaker Change: Thank you and your next question comes from the line of John Tumazos from Jensen measures Independence Research. Please proceed.

Speaker Change: Okay.

John Tumazos: Thank you for all the explanations.

John Tumazos: Uh, Michael the Love of Colorado, SCAR, and PEA with 2.8 billion as capital if you go to 2.0. $6 billion if you stop at 30,000 times a day, future. The share buyback in potentially in 2024. Maybe you have a lot of time to earn money.

John Tumazos: Michael.

Speaker Change: La Colorado scarring.

John Tumazos: With $2 8 billion of capital if you go to 50000 tons a day.

Speaker Change: Two points.

Speaker Change: 6 billion, if you stop at 30000 tonnes a day is a big.

Speaker Change: Future item.

Speaker Change: The share buyback and potentially in 2024.

John Tumazos: Okay.

John Tumazos: Sure.

John Tumazos: Maybe you have a lot of time to earn money in 2345 years from now you have the end of the construction, Colorado discard.

Michael Steinman: So three, four, five years from now, you're, Should we take this essentially as your expression of confidence? You're going to complete a JV with a base map, and your share of the capital might be less than half of the PEA now. Further study.

John Tumazos: Should we take this essentially.

John Tumazos: Your expression of confidence that youre going to complete a JV with a base metal.

John Tumazos: Partner.

John Tumazos: And your share of the capital.

John Tumazos: Might be less than half of the PAA number or the subsequent studies you are going to reduce that.

Michael Steinman: Yes, thanks for the question. Absolutely. I think I made it very clear from the first call that the focus now is to find the right partner for that project, as you can imagine, for such a large, I would call it the silver zinc deposit, probably one of the largest in the world, and there is quite some interest from the base metal side, just because of the long life, the underground nature, and the big, big, big zinc production.

John Tumazos: Capex number and reduce your capital call.

Speaker Change: Yes. Thanks for the question absolutely I think I made it very clear from the first call on that.

Speaker Change: The focus now is to us.

Speaker Change: To find the right partner for that project as you can imagine for such a large.

Speaker Change: I will call it silver zinc deposit.

Speaker Change: The largest in the world.

Speaker Change: There is quite some interest from the base metal side, just because of the long lives.

Speaker Change: The underground nature.

Speaker Change: And debate.

Speaker Change: <unk> production. So yes, that's absolutely my confidence to work on that.

Michael Steinman: So yes, that's absolutely my confidence to work on that, on such a kind of an agreement that obviously will reduce our share of the..., on the Capitol but always stay focused on that very large silver production. As you remember, there are about 50,000 and about 17 million ounces for the first 10 years of average silver production, which really will be our focus in any kind of agreement that, hopefully, we can't. Should we also take this? Perhaps it is an expectation that or the zinc prices might rebound, or the. Escobar restarts.

Speaker Change: Such kind of an agreement.

Speaker Change: Obviously, we'll reduce.

Speaker Change: Our share on the on.

Speaker Change: On the capital, but always stay focused on that very large silver production. So you remember it was about a 50000 ton about 17 million ounces for the first 10 years average silver production, which really will be our focus in that any kind of agreement that that hopefully become too.

Speaker Change: Should we also take this perhaps as an expectation.

Speaker Change: The.

Speaker Change: The silver zinc prices rebound to help your economics.

Speaker Change: Or is it.

Speaker Change: Escobar restarts in.

Speaker Change: Guatemala.

Michael Steinman: Well, you know, I don't have control, obviously, where the silver and zinc prices are going. I think, you know, all the listeners have their views on that. I have my view.

Speaker Change: Well.

Speaker Change: I don't have control, obviously, you've got a silver and zinc prices are going I think.

Speaker Change: All of the listeners have their view on that.

Speaker Change: My view of it.

Speaker Change: I think once we see.

Michael Steinman: I think once we see interest rates move the other way, we will see a strong rebound in precious metals for sure. You know, I don't know when that will happen this year because of the different views out there. But just to remind everyone, like last year, we repaid about four hundred million dollars in debt, and we paid about one hundred and over one hundred and thirty million dollars in dividends. While we ended the year with a record cash and short-term investment balance of over four hundred forty million dollars. So those are very important numbers here. And obviously, one of the reasons why we decided at this point in the market, where we believe there are a lot of values, you know, luck is one of them that is not fully included in our share price.

Speaker Change: Interest rates.

Speaker Change: The other direction level see a strong rebound on <unk> modules for sure.

Speaker Change: I don't know when that will happen this year to us the different views out on deck, but just to remind everyone like last year we.

Speaker Change: <unk>.

Speaker Change: We have repaid 400 million dollar debt and we paid about 100 or $130 million in dividends, while we ended the year with.

Speaker Change: Cash and short term investment balance of four.

Speaker Change: $440 million.

Speaker Change: So those are very important numbers here and obviously one of the reasons why we decided at this point in the market we believe.

Speaker Change: There's a lot of value is luckily it out as one of them that are not fully included in our share price that it's a good time on the accretive time.

Michael Steinman: But it's a good time and an accretive time to buy back some of our shares. Of course, we're looking forward, as you saw in the quarterly guidance, to a stronger and strong 2024, especially the second half, and costs come up as we explained with Cosmos earlier in the call. So all that combination and, obviously, last but not least, we will continue to work on divestments. We have been, I think, very successful last year in the divestments, and we'll continue to work on that. So all that together, and the fact that we probably created last year dividends, sorry, royalties out of those divestments that we did, which, you know, I will probably value somewhere in the 150 to 200 million dollar range at today's prices. So another kind of big value bucket that we have under our control. So I think it's a very prudent approach for us to obviously pay the dividend and come out with that share buyback at this time. Thank you. And your next question...

Speaker Change: To buy back some of our shares.

Speaker Change: Of course, we're looking forward as you saw during the quarterly guidance too.

Speaker Change: Less stronger and strong 2020 for especially the second half on cost come off as we explained.

Speaker Change: Cosmos earlier in the call. So all that combination and obviously last but not least we will continue to work on divestments.

Speaker Change: And I think very successful last year on the divestments and will continue to work on that so all of that together and the fact that we probably created last year dividend sorry.

Speaker Change: Royalties.

Speaker Change: Divestments that we did which I would property values on marine.

Speaker Change: The $50 million to $200 million range at today's prices. So another kind of big value bucket that we have.

Speaker Change: Under our control so I think it's a very prudent approach for us to do obviously pay the dividend.

Speaker Change: And come out with that share buyback at this time.

Speaker Change: Thank you.

Speaker Change: Thank you and your next question.

Operator: Thank you, and your next question comes from the line of Greg Hutchinson from, Hi, good morning guys. Just unlike Colorado, can you give us a sense of what the grades will be in the second half of this year? Obviously, there's going to be a big inflection point. And how durable are those higher grades kind of going forward? Is it more of a year or two? Or is it a very short period of time? Yeah, good morning, Greg. This is Steve.

Speaker Change: Thank you and your next question comes from the line of Greg Hutchinson from TD. Please proceed.

Greg Hutchinson: Hi, good morning, guys.

Greg Hutchinson: Just like Colorado.

Greg Hutchinson: Can you just give us a sense of what the grades will be in the second half of this year, obviously, there's going to be a big inflection point.

Greg Hutchinson: And then how durable are those higher grades kind of going forward is it more of a.

Greg Hutchinson: A year or two or is it a very short period of time.

Greg Hutchinson: Yes, good morning, Greg This is Steve.

Steve Busby: Fortunately, we are seeing the grades at La Colorado that we expect during Q4 were about 288 grams silver.

Steve: Fortunately, we are seeing the grades of lower Colorado that we expect. During Q4, we were about 288 grams silver. That's close to the reserve grade.

Steve Busby: That's close to the reserve grade and Thats, what we expect going into next year, it's really a matter of tonnage we got to get our tonnage up and the tonnage that we got and increases in the in the higher grade portion of the candle or deep zone, So thats, what the ventilation shaft.

Steve: It's what we expect going into next year. It's really a matter of tonnage. We got to get our tonnage up. And the tonnage that we have to increase is in the higher grade portion of the Candelaria deep zone. So that's what the ventilation shaft and the vent fans will give us access to get that tonnage up. But we're pretty happy with the grades where they are.

Greg Hutchinson: And the vent fans will give us access to to get that tonnage up but we're pretty we're pretty.

Greg Hutchinson: Happy with the grades where they are we're pretty confident that those grades are going to sustain over a long period of time, we see potential to continue to add as we drill more Colorado.

Steve: We're pretty confident those grades are going to sustain over a long period of time, and we see potential to continue to add as we drill out more. Yeah, we have at the moment probably about nine, eight, or nine years of proven probable reserves kind of throughput. So yes, they can sustain a long time. Obviously, there will be advances in the SCARN during that time period. But yeah, I think there's, you know, a long reserve in the veins. Later on, those veins will join up with the SCARN deeper down.

Greg Hutchinson: We have at the moment, probably about nine eight to nine years of proven and probable reserves.

Greg Hutchinson: Just kind of throughput so yes that can sustain a long time, obviously that will be.

Greg Hutchinson: Advanced <unk> con jewelry debt during that time period, but yes.

Greg Hutchinson: I think that's a long reserve into veins later on those Gainesville, sorry, now pick the scar and deeper down.

Greg Hutchinson: Okay. So the plan from throughput perspective is around 2000 tonnes. A day is that we should be modeling that's here.

Steve: Okay, so the plan from a throughput perspective is around 2,000 tons a day. Is that what we should be modeling next year? Yeah, once we get the ventilation up and running, that's kind of our target to get above 2,000 tons a day. So once the ventilation fans are running, we do have some development acceleration that we have to do in that Candelaria zone. So, you'll see it start to ramp up from the current kind of 1300 ton a day range. It'll take us a couple months, two, three months to ramp up from there to the 2000 tons a day once the vent fan is running.

Greg Hutchinson: Yes, once we get the ventilation up and running that's kind of our target is to get above the 2000 tonnes. A day. So once the ventilation fans are running we do have some development.

Greg Hutchinson: Acceleration that we have to do in that Candler East zone. So you know you'll see it start to ramp up from the current kind of 1300 ton a day range.

Greg Hutchinson: It'll take US a couple of months to three months to ramp up from there to the 2000 tonnes a day once the vent fan is running.

Speaker Change: Okay great.

Ignacio: Okay, great. And just in terms of, you know, the I guess. The sort of free cash flow you guys are going to generate here. Do you anticipate being free cash flow positive in the first half of this year, given the higher taxes you have to pay, that are usually weighted to the first half? Or is it sort of a, you anticipate free cash flow sort of more of a second half? Hi Craig, this is Ignacio. That's a great question.

Speaker Change: And just in terms of.

Speaker Change: I guess.

Greg Hutchinson: Our free cash flow you guys are going to generate here do you guys anticipate being free cash flow positive in the first half of this year given the higher taxes you have to pay.

Greg Hutchinson: Usually weighted to the first half or is it sort of.

Greg Hutchinson: You anticipate free cash flow sort of more of a second half story.

Greg Hutchinson: Hi, Craig This is Ignacio that's a great question just following up on what Steve just said our forecast is for it to be backend loaded and as usual, yes. There is heavy taxes being paid in the first half of the year plus some extra capital.

Ignacio: And just following up on what Steve just said, our forecast is for it to be back and loaded. And, as usual, there are heavy taxes being paid in the first half of the year, plus some extra capital. So we will be able to pay our dividends in the first half of the year without drawing from our credit facility.

Ignacio: So we are we will be able to pay our dividends in the first half of the year without drawing from our credit facility, but the bulk of the free cash flow does come in the second half of the year.

Ignacio: But the bulk of the free cash flow does come in the second half of the year. Okay, great. Thanks, guys.

Speaker Change: Okay, great. Thanks, guys.

Speaker Change: Thank you.

Operator: Thank you. Thank you. Once again, should you have a question, please press the star followed by the number on your telephone keypad. And your next question comes from the line of Don DeMarco from National Bank Financial. Please go ahead.

Speaker Change: Thank you once again should you have a question. Please press the star followed by the one on your telephone keypad and your next question comes from the line of Don Demarco from National Bank Financial. Please go ahead.

Don Demarco: Thank you operator, and good morning, Michael and team.

Don Demarco: Thank you, Operator, and good morning, Michael and team. So first question, did you have some strong cost performance in Q4 at a couple of your flagship mines, both quarter to quarter and relative to 2024 guidance? And so I'm referring to El Pinyon, Q4 ASIC 1178, midpoint and guidance is 1250; Jacobina 1022, and the midpoint of 24 guidance is 1300.

Don Demarco: So first question.

Don Demarco: You had some strong cost performance in Q4, and a couple of your flagship mines, both quarter over quarter and relative to 2020 for guidance.

Don Demarco: I'm, referring to helping on Q4, ASIC 11, 78 midpoint guidance is 12 50.

Don Demarco: Jacobean at 10, 22, and the mid point of 24 <unk> hundred <unk>.

Steve: So, in light of this Q4, are you feeling more confident about guidance at these mines and maybe even... tracking the lower end of the range? Yeah, thanks Don. I mean, we feel very confident with the guidance we put out for those mines, which shows a modest inflation rate that we'll absorb, like five to seven percent. We've got some wage adjustments that we believe need to be made in Brazil and some added payroll costs that we have to look at there. So I think what we forecasted out, we're quite confident of. There is some potential upside to those things, but it's really driven by productivity.

Don Demarco: In light of this Q4 are you feeling more comfortable confident on guidance at these mines and maybe even track.

Speaker Change: Tracking the lower end of the ranges.

Speaker Change: Thanks Dawn.

Dawn: We feel very confident with the guidance, we put out for those mines, which does show a modest.

Speaker Change: Inflation rate that will absorb.

Dawn: 5% to 7%, we've got some wage adjustments that we believe need to be made in Brazil. Some some added payroll costs that we have to look out there. So I think what we forecasted out we're quite we're quite coughing.

Dawn: There is some potential upside to those things.

Dawn: But it's really driven on productivity, that's really where we're focusing our efforts there, but I think from a cost side, we're pretty confident in your guidance.

Michael Steinman: That's really where we're focusing our efforts there. But I think from the cost side, we're pretty confident in our guidance. Just found to add here, don't forget that a big impact on our costs if we have more than one product at the mine is the byproduct credit from our byproduct metal. So that metal price has a big impact. And last but not least, currencies. So foreign currencies can have a big impact. You saw that in Mexico, where obviously, with the strong peso, that was kind of a headwind on the cost side for us. But you know, it can be very strong tailwinds as well.

Dawn: At this time to really to add here don't forget that the big impacts for our costs.

Dawn: More than one product at the mine.

Dawn: Byproduct credit from the.

Dawn: Our pipe product metal metal process.

Dawn: And last but not least currency foreign currencies.

Dawn: And have a big impact you saw that in Mexico are opposite of it.

Dawn: Frank peso.

Dawn: That was kind of a headwind on the cost side for us.

Speaker Change: It can be very strong tailwind as well. So those are the things that we have no control over but yes.

Michael Steinman: So those are the things that we have no control over. But yeah, we are very confident with our guidance over the items that we control. Okay. Thank you. So just shifting to Escobar, then, the IOL consultation meetings have resumed, and a meeting was held yesterday. It's good to hear that the new minister was present. Is there any feedback from this initial meeting or insight into the next meeting or any next steps? It was the Vice Minister that was present yesterday. It was the first meeting after a few weeks of transition with the new government, which has indicated to us that it is committed to the ILO 169 process. Of course, there was some time needed to transition and integrate the new government. That's absolutely normal.

Speaker Change: With our guidance over the items that we that we're controlling.

Speaker Change: Okay. Thank you.

Speaker Change: So just shifting to ask them all then.

Speaker Change: The Ilo complication meetings have resumed and meeting was held yesterday.

Speaker Change: To hear the new Minister was present is there any feedback from this initial meeting our insight into it.

Speaker Change: The next meeting or at any next steps.

Speaker Change: Yes. It was the vice Minister that must present yesterday was the first meeting after.

Speaker Change: A few weeks of transition with the new government.

Speaker Change: The government that has indicated to us to be committed to the Ilo 169 process of course, there was some time needed to do.

Speaker Change: To transition and integrate the new government, that's absolutely normal and yen and Youre correct me at the last meeting unless yesterday.

Michael Steinman: And you're correct, the last meeting was yesterday. I think there are some working meetings planned here for the future. But for us, we're looking forward to continuing the process with all the parties involved. There will be, for sure, I guess, from time to time, updates on the MEM website for the consultation, so just have a look on there for updates from the MEM director. Okay, fair enough.

Speaker Change: There are some broken meetings planned here for the for the future.

Speaker Change: Australia is looking forward to continue to process with all the parties involved.

Speaker Change: That will be for sure I guess from time to time updates on the mountain have upside for the consultation so.

Speaker Change: Just have a local therefore updates from demand directly.

Speaker Change: Okay fair enough.

Michael Steinman: And final question then, with producer valuations, uh... where they are in the market right now, call it depressed, are your plans for asset divestment maybe de-prioritized until uh... Valuations are recovered? Not really.

Speaker Change: And final question then.

Speaker Change: With producer valuations.

Speaker Change: Where they are in the market right now call it depressed or your plans for asset divestment, maybe prioritize until.

Speaker Change: Valuations recover.

Speaker Change: No not really I mean, it depends obviously on the Undervaluation enterprises Vega.

Michael Steinman: I mean, it depends obviously on the valuation and prices we got. I think we were very successful divesting assets last year at very, very good prices and royalties. You know, most of these projects, especially like last year when you looked at Marat, are long-term projects; big buyers, big companies. They look at a very, very long or much longer time frame than just current metal prices. So I don't think that it really impacts a lot of their valuation when they look at assets.

Speaker Change: And all have been very successful divesting assets last year at the very very successful prizes and.

Speaker Change: And royalties.

Speaker Change: Uh huh.

Speaker Change: Most most of these projects are especially like last year. When you looked at tomorrow, There's a long term project.

Speaker Change: Big buyers big companies. They look at very very long much longer timeframe than just current metal prices.

Speaker Change: So I don't think so that it really impacts their valuations and they look at the assets.

Michael Steinman: And I see that continuing into this year. So all depends on the prices, on the valuations we get from potential buyers this year. But now I'm very confident that we can continue that route down and divest some assets this year. Okay, and just as a follow-up to that, I think Lorraine, too, the Sulphide Project has been mentioned as a candidate. Others certainly are. Can you share any color on what might be the sort of top candidates for divestment consideration? I mean, I think we talked about Lorena too.

Speaker Change: I see that continuing in today's see yourself all depends on.

Speaker Change: On the prices on the valuations we got from potential buyers. This year, but now I'm very confident that we can continue that write down and divesting our subsequent year.

Speaker Change: Okay, and just as a follow up to that I think Lorraine to the sulfide project as we mentioned as a candidate others. Certainly are can you share any color on what might be the sort of top candidate for divestment considerations.

Speaker Change: I mean, I think we've talked about La arena, two obviously, Larry in a one hour oxide minus producing so very strong producer for us I.

Michael Steinman: Obviously, Lorena 1, our oxide mine, is producing a very strong producer for us. I think everybody knows we expanded that oxide life from probably when we purchased our mine, like 2021 to 2026, so a very successful exploration program on that aspect as well. The Deep Sulphides, or Deeper Sulphides, the copper deposit, obviously is in a similar kind of bucket for us than Mara was. It's not our commodity ready to build out copper deposits.

Lorraine: I think everybody knows we extended actually that oxide life I'm, probably when we purchased how like plenty plenty, 1% to 2026, so very successful exploration program on that asset as well.

Speaker Change: <unk>.

Speaker Change: The deep sulfides, a deeper sulfide copper deposit.

Speaker Change: Like a similar kind of bucket for us tomorrow.

Speaker Change: Now we are.

Speaker Change: Our commodity ready to build out corporate deposits.

Michael Steinman: But the rest of the diversions, look, we are very actively working on them. We are very active in the search for a partner for La Colorado, and I would like to leave it at that moment. Obviously, we'll inform the market as soon as anything is ready to share. Okay.

Speaker Change: But the rest of the divestments look we're very active working on it we are very active working on the search for a partner.

Speaker Change: Luckily it out and I would like to leave it with that with that at the moment, obviously, we will inform the market as soon as anything is Friday to chair.

Speaker Change: Okay. Thank you Michael and good luck with the rest of Q1.

Don Demarco: Thank you, Michael, and good luck with the rest of Q1. Thank you. Thank you. There are no further questions at this time, Mr. Steinman.

Speaker Change: Thank you.

Speaker Change: Thank you there are no further questions at this time Mr. Steinman. Please proceed.

Michael Steinman: Yeah, thanks, operator. And thanks, everyone, for being on the call. It has been a very dynamic year, last year, as we indicated, with the close of the transaction, integration of the asset, selling multiple assets, retaining not only good cash values for that but also strong royalties. And, Last but not least, coming out and publishing that really exciting TA on La Colorado Scarns. A very active year, a lot of cash movements in our portfolio over the year, and, as I mentioned, strong repayment of debt. We don't have short-term debt anymore. Very strong cash balance and being in the fortunate situation to be able to use that cash for further growth and keep investing in our projects, not only sustaining capital but also project capital on something like La Colorado to advance that project but still be, obviously, in the position to maintain our dividend and to buy back some of our shares at this, you know, what I would think, very low valuation.

Steinman: Yes, thanks, operator, and thanks, everyone for being.

Steinman: On the call. It has been a very dynamic year last year as we indicated with the close of the transaction integration of the asset selling multiple assets retaining not only good cash values for that but also strong royalties and.

Speaker Change: And last but not least coming out in publishing.

Speaker Change: Really exciting.

Speaker Change: Luckily <unk>, so very active active year.

Steinman: Yes.

Steinman: A lot of a lot of cash movements in our in our portfolio with the year as I mentioned strong repayment.

Steinman: We don't have short term debt anymore.

Steinman: Very strong cash balance.

Steinman: Now being the fortunate situation to be able to use that cash for further growth and keep investing in our projects.

Steinman: Not only sustaining capital, but also a project capital on something like La Colorado to advance that project, but still be obviously into position.

Steinman: To maintain our dividend and to buy back some of our shares at this you know what I would say.

Steinman: Very low valuations so when you're looking forward to 2024 and looking forward to keep you update that in May with our Q1 results until then thank you very much.

Operator: So really looking forward to 2024 and looking forward to keeping you updated on our Q1 results. Until then, thank you very much. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may all

Speaker Change: Thank you, ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may all disconnect.

Speaker Change: [music].