Q4 2023 Lundin Mining Corp Earnings Call

Operator: Good day, ladies and gentlemen, and welcome to the Lundin Mining fourth quarter and year-end 2023 financial results and All I say in this anonymous, Following the presentation, we'll conduct a question and answer session. If at any time during this call you require my assistance, please press star 0 for the I would now like to turn the conference over to Jack Lundin, President and CEO. Please vote.

Good day, ladies and gentlemen, and welcome to the Lundin mining fourth quarter and year, Anthony turning to financial results and webcast.

At this time, why saying listen only mode.

Following the presentation, we will conduct a question and answer session.

If at any time during this call Uruguayan meat assistance. Please press star zero for the operator.

Today's call is being recorded on Thursday for rate during the second.

Any forward.

I would now like to turn the conference over to Jack lending Brisket and CEO.

Please go ahead.

Jack Lundin: Good morning, and welcome to Lundin Mining's full year and fourth quarter 2023 earnings call. Last night, we reported operating and financial results. A copy of our press release and slides is available on our website, where a replay of this call will also be made available. Before we begin our presentation, I would like to remind everyone that yesterday's results and certain comments on the call include forward-looking statements. I will draw your attention to the cautionary statements on slide two for reference. During the call, I am joined by other senior members of our executive team.

Good morning, and welcome to Lundin Mining's full year and fourth quarter 2023 earnings call last night, we reported operating and financial results a copy of our press release and slides are available on our website, where a replay of this call will also be made available.

Before we begin our presentation I would like to remind everyone that yesterday's results and certain comments on the call include forward looking statements.

I will draw your attention to the cautionary statements on slide two for reference.

On the call I'm joined by other senior members of our executive team tighter Paulson, our senior Vice President and Chief Financial Officer, and Juan Andres Morel, Our senior Vice President and Chief operating Officer.

Jack Lundin: Tyler Paulson, our Senior Vice President and Chief Financial Officer, and Juan Andres Morel, our Senior Vice President and Chief Operating Officer. I would also like to take this opportunity to welcome Pat Maron to the team as Executive Vice President, Technical Services. Pat has extensive operational and technical experience as the previous SVP, Canadian Operations for Newcrest and also for Goldcorp. As well, I would like to announce another new addition to the team, Joel Adams, as the new commercial vice president. Joel brings with him extensive experience in the downstream segment of our business, having previously worked for Trafigura and, prior to that, Glencore. Before commencing the presentation, I intend to address a recent unfortunate incident at our Neves Corvo mine in Portugal, where a fatality occurred last week. We are deeply saddened by this incident, recognizing the challenging circumstances it presents.

I would also like to take this opportunity to welcome Pat Merrin to the team as executive Vice President Technical services.

He has extensive operational and technical experience as the previous SVP Canadian operations for Newcrest and also for Goldcorp.

As well as I would like to announce another New addition to the team Joel Adams as the new commercial Vice President.

Joel brings with him extensive experience in the downstream segment of our business, having previously worked for Trafigura and prior to that Glencore.

Prior to commencing the presentation I intend to address the recent unfortunate incident at our <unk> mine in Portugal.

As Italo occurred last week.

We are deeply saddened by this incident recognizing that the challenging circumstances it presents.

Jack Lundin: Our heartfelt thoughts and support are extended to the family and co-workers of our deceased colleagues during this difficult time. We will continue our efforts to send all of our workers home safe at the end of each day and are always committed to the health and well-being of our workforce. I will now focus the audience's attention on our 2023 Corporate Highlights. The company underwent a transformative year in 2023, marked by a comprehensive restructuring of the corporate head office, which was subsequently relocated to Vancouver in September. We increased the operational and technical strength of our team, which is now in place to bring the company through the next phase of growth. Production statistics will be further expanded upon during this presentation. However, I'm pleased to report that we met guidance for all metals, including a record for copper and zinc production for the company. During the year, we acquired the Casaronis Mine, which will be a building block for the future of the Vicua District. Included within the acquisition of this operation is a large and highly prospective underexplored land package of nearly 60,000 hectares.

Our heartfelt thoughts and support are extended to the family and coworkers of our deceased colleagues during this difficult time.

We will continue our efforts to send all of our workers home sites at the end of each day.

Always committed to the health and wellbeing of our workforce.

I will now focus the audience's attention to our 2023 corporate highlights.

The company underwent a transformative year in 2023 marked by a comprehensive restructuring of the corporate head office, which was subsequently relocated to Vancouver in September.

We increased our operational and technical strength of our team, which is now in place to bring the company through the next phase of growth.

Production statistics will be further expanded upon during this presentation. However, I'm pleased to report that we met guidance for all metals, including a record for copper and zinc production for the company.

During the year, we acquired the cast their own it's nine which will be a building block for the future of the Vicuna District.

<unk> within the acquisition of this operation is a large and highly perspective under explored land package of nearly 60000 hectares.

Jack Lundin: With great enthusiasm, we have launched the first significant exploration drill program at the mine since it began operating in 2013. At Candelaria, the environmental impact assessment approval has granted us an extension of the mine life from 2030 to the year 2040. Current reserves have exceeded this timeline, and this milestone enables us to reassess the underground expansion, which will include updating the mine plan and CapEx this year. In December, Javier Mille assumed the role of president in Argentina.

With great enthusiasm, we have launched the first segment significant exploration drill program at the mine since it began operating in 2013.

I candle area, the environmental impact assessment approval is granted US an extension of mine life from 2030 to the year 2014.

Current reserves.

Past this timeline and this milestone enables us to reassess the underground expansion, which will include updating the mine plan and Capex this year.

In December have you ever <unk> assumed the role of President in Argentina, We anticipate collaborating with the president and his administration to progress the Jose Maria project.

Jack Lundin: We anticipate collaborating with the president and his administration to progress the Jose Maria project. We had the privilege of meeting with the president and the Minister of Economy, along with the Secretary of Mine, in January, to discuss matters related to Lundin Mining and Jose Maria, and also the Lundin Group's longstanding presence and success within the country. Lastly, we updated our mineral reserves and mineral resources and were able to grow our reserve base by 26% with the acquisition of Casaronis to about 10.5 million tons of proven and probable copper reserves. Additionally, while at Candelaria, additional drilling contributed to an increase in overall resources that we hope to convert to reserves in the future. Operationally, our assets performed well, delivering on guidance in all consolidated metal categories. Not shown on this slide, however, nickel and gold production achieved the upper end of the guidance ranges.

We had the privilege of meeting with the President and the Minister of economy, along with Secretary of mining in January to discuss matters related to Lundin mining and Jose Maria and also the lending groups long standing presence and success within the country.

Lastly, we updated our mineral reserves and mineral resources and were able to grow our reserve base by 26% with the acquisition of cast their own as to about $10 5 million tons of proven and probable copper reserves.

While at Kendall area additional drilling and contributed to an increase in overall resources that we hope to convert to reserves in the future.

Operationally, our assets performed well delivering on guidance in all consolidated metal categories.

Not shown on this slide however, nickel and gold production achieved the upper end of the guidance ranges.

Jack Lundin: As mentioned earlier, annual copper production was a record for the company at 315,000 tons. Across our base metals portfolio, the zinc expansion project at Nevis Corvo, otherwise known as ZEP, is coming to fruition, leading to a record quarterly and yearly zinc production result. At Zinkruven in 2023, improved recoveries from the sequential flotation project were achieved.

As mentioned earlier annual copper production was a record for the company at 315000 tons.

Across our base metals portfolio, the zinc expansion project at <unk> Corvo, otherwise known as <unk> is coming to fruition, leading to a record quarterly and yearly zinc production results.

At zinc Reuben in 2023 improved recoveries from the sequential Floatation project were achieved however, a longer than anticipated ramp up resulted in a slight miss on production guidance.

Jack Lundin: However, a longer-than-anticipated ramp-up resulted in a slight miss on production guidance. Nevertheless, we generated significant adjusted EBITDA of $1.4 billion, operating cash flow of over $1 billion, and free cash flow from operations of $345 million. Yesterday, our board of directors declared a regular quarterly dividend of $0.09 Canadian per share. The annualized dividend of $0.36 CAD offers a 3% yield and continues to be a leading return amongst our peers. We directly returned over $206 million in dividends in 2023 and more than $1.2 billion to shareholders since 2017 through dividends and share buybacks. Our ongoing focus remains on generating value through strong operational performance and disciplined capital allocation, which supports strategic growth initiatives to create long-term and sustainable shareholder returns. I will now hand it over to Juan Andres to go through the operational results in more detail. Thank you, Jack.

We generated significant adjusted EBITDA of $1 4 billion operating cash flow of over $1 billion and free cash flow from operations of $345 million.

Yesterday, our board of directors declared a regular quarterly dividend of nine cents Canadian per share the.

The annualized dividend of <unk> 36 cents Canadian offers a 3% yield and continues to be a leading return amongst our peers.

We directly returned over $206 million in dividends in 2023, and more than $1 2 billion to shareholders since 2017 through dividends and share buybacks.

Our ongoing focus remains on generating value through strong operational performance and disciplined capital allocation, which support strategic growth initiatives to create long lasting and sustainable shareholder returns.

I will now hand, it over to Juan Andres to go through the operational results in more detail.

Thank you Jack.

Juan Andres Morel: We previously released our production results earlier this year, so I will speak briefly to some of the details provided in our year-end release. As mentioned by Jack earlier, the company met metal production guidance on a consolidated basis for all metals in 2023, while nickel and gold production achieved the upper end of the guidance. Copper production was a record for the company at 315,000 tons for the year and 103,000 tons for the quarter. Both Cacerones and Eagle exceeded original guidance.

We previously released our production results earlier this year. So I will speak briefly to some of the details provided in our year end release.

As mentioned by Jacques earlier, the company metal production guidance on all consolidated basis for all metals in 2023.

<unk> Nikko Angola production achieved the upper end of the guidance.

Copper production was a record for the company at 315000 tonnes for the year and 103000 tons for the quarter.

Asset owners on Eagle exceeded our original guidance.

Juan Andres Morel: Candelaria had a strong fourth quarter, processing 7.8 million tons of ore and producing 42,000 tons of copper, finishing off the year with its best quarter. This was the result of softer ore than planned, which drove throughput in the mill and higher grades compared to previous cores. Full year production at Candelaria was 152,000 tons of copper, which was the midpoint in the guidance. Cacerones performed extremely well and exceeded the upper end of the original guidance of 60,000 to 65,000 tons for the second half of the year and produced 65,200 tons of copper. During the fourth quarter, the mine produced 35,000 tons of copper and 928 tons of molten material. High production volumes were driven by higher throughputs and recoveries. Throughput in the mill was 8.3 million tons for the quarter, or 4,200 tons per hour, which is close to the nameplate capacity for the processing plant.

<unk> had a strong fourth quarter processing, seven 8 million tons of ore and producing 42000 tonnes of copper, finishing off the year with our best quarter.

This was the result of softer ore than planned which drove throughput in the mill and higher grades compared to previous quarters full.

Full year production at Candelaria was 152000 tons of copper, which was the midpoint in the guidance.

<unk> has performed extremely well and exceeded the upper end of the original guidance of 60000 to.

To 65000 tons for the second half of the year and produced 65200 tons of copper.

During the fourth quarter. The mine produced 35000 tonnes of copper 928 tons of pulp.

Higher production volumes were driven by higher throughput and recoveries throughput in the mill was $8 3 million tons for the quarter or 4200 tons per hour, which is close to the nameplate capacity for the processing plant.

Juan Andres Morel: We expect to see similar levels of throughput in 2024. Since the acquisition, Casa de Lorenz has shown steady improvement in throughput driven by higher mill utilization and better quality performance. As mentioned, production at Chapada was second-half weighted last year. During the quarter, higher-than-anticipated grades offset lower mill throughput to produce 12,900 tons of copper, which is in line with the third quarter. In the first half of the year, Chapada produced 20,500 tons versus the second half at 25,100 tons of copper and, on a four-year basis, 45,700 tons. Coal production for the quarter totaled 44,000 ounces for the fourth quarter and for the year and 149,000 ounces, which was in the upper end of the original guide. As mentioned earlier, prior throughput at Candelaria and improved grades and recoveries at Chapada contributed to the overall whole product. Now, let's move to slide number seven.

We expect to see similar levels of throughput in 2024.

Since the acquisition <unk> has shown steady improvement in the throughput driven by higher utilization and better OLED performance.

As mentioned production of Tomorrow will second half weighted last year during the quarter higher than anticipated grades offset lower mill throughput to produce 12900 tonnes of copper, which is in line with the third quarter.

In the first half of the year <unk> produced 20500 tonnes versus the second half at 25100 tons of copper and on a full year basis 45700 times.

Gold production for the quarter totaled 44000 ounces for the fourth quarter and for the year and 149000 ounces, which was in the upper end of the original guidance.

As mentioned earlier higher throughput at Candelaria, and improved grades and recoveries at Takeda contributed to the overall hold production.

Let's move to slide number seven.

Juan Andres Morel: Zinc production was higher quarter over quarter at 51,000 tons and is a new quarterly record, as mentioned by Jack earlier. Production at Neves Corvo increased quarter over quarter and produced 31,000 tons of zinc. We're seeing the benefits from the zinc expansion project as it ramps up in capacity. During the year, the Zinc Circuit was able to process 2.0 million tons. During the quarter, zinc-rubin production was impacted by zinc ore availability, which lowered throughput and grades during the quarter. 19,700 tons of zinc were produced in the quarter and 76,000 tons for the full year, which represented a slight misguidance for zinc-rubin.

Zinc production was higher quarter over quarter are 51000 tons and its a new quarterly record as mentioned by Jacques earlier.

Reduction in <unk> score will increase quarter over quarter and produced 31000 tons of zinc.

We're seeing the benefits from the zinc expansion project as it ramps up in capacity.

During the year <unk> was able to process 2.0 million tops.

During the quarter <unk> production was impacted by zinc ore availability, which lower throughput and grades during the quarter 19700 tons of zinc were produced in the fourth quarter and 76000 tons for the full year, which represented a slight miss guidance.

Seabrook.

Juan Andres Morel: On a consolidated basis for the year, Lundin Mining produced 185,000 tons of zinc, which was in line with 2023 guidelines. Nickel production was 3,700 tons for the quarter and 16,400 tons for the year, which beat the original guidance for EGLE. This was primarily driven by higher grades and recoveries over the course of the year.

On a consolidated basis for the year lending mining produced 185000 tons of zinc, which was in line with 2023 guidance.

Nickel production was 3700 tons for the quarter.

<unk> and 16400 tons for the year, which beat the original guidance for Eagle. This was primarily driven by higher grades and recoveries over the course of the year.

Tyler Paulson: Operationally, all our assets perform well, and we're seeing the results from our improved planning cycle and operational philosophy. I will now turn the call over to Titor to provide a summary of our financial results. Thank you, Con Andres. Moving to slide eight.

Operationally, all our assets performed well and we're seeing the results from our improved planning cycle on operational philosophy.

I will now turn the call over to tighter to provide summary on our financial results.

Thank you Congress move.

Moving to slide eight.

Tyler Paulson: As Jackie already mentioned, we generated a significantly adjusted EBITDA operating cash flow and free cash flow from the operations in 2023. Starting here with revenue, we generated 1.1 billion during the... order, with the fourth quarter benefiting from full revenue contribution from Casa Rona. However, pricing adjustments on prior period sales of concentrate impacted revenues negatively by $24 million in the fourth quarter.

As Chuck already mentioned, we generated significant adjusted EBITDA operating cash flow and free cash flow from the operations in 2023.

Starting here with the revenue we generated $1 one could you in June.

Quarter with the fourth quarter benefiting from full revenue contribution from customer rollout.

Pricing adjustments on prior period sales of concentrates impacted revenues negatively by $24 million into fourth quarter.

Tyler Paulson: Revenue for the full year amounted to close to $3.4 billion, and it's the highest annual revenue recorded in the history of the company. Price realization has remained relatively stable for most metals during 2023, except for nickel, which has seen a steady decline in pricing during the year. The realized copper price was slightly above $3.80 per pound for both the fourth quarter and the full year, whilst the realized price for zinc was around $1.15 per pound for both the fourth quarter and the full year. Our sales remain predominantly

Revenue for the full year amounted to close to three $4 billion.

And this is your highest annual revenue recorded in the history of the company.

Price realization has remained relatively stable for most metals during 2023, except for nickel, which has seen a steady decline in pricing during the year.

The realized copper price was slightly above $3 80 per pound for both the fourth quarter and the full year was the realized price for <unk> was around $1 15 per pound for both the fourth quarter and full year.

Our sales remains predominantly.

Tyler Paulson: Leverage to Copper. With that metal generating 75% of the 4 quarter revenue, with zinc and gold accounting for 7% each, and the balance of the revenue being relatively equally distributed across nickel, moly, and PGM. At the end of the fourth quarter, approximately 118,000 tons of copper were provisionally priced at $3.85 per pound and remained open for final pricing adjustments, as did over 34,000 tons of zinc at $1.22 per pound. And 1,300 pounds of nickel at $7.46 per pound. Moving to slide 9.

Leverage to copper.

With us metal generating 75% of the fourth quarter revenue with zinc and gold accounting for 7% each and.

And the balance of the revenue being relatively equally distributed across nickel moly in PJM.

At the end of fourth quarter, approximately 118000 tonnes of copper were provisionally priced at $3 85 per pound.

And remained open for final pricing adjustments.

It overtook to 4000 tonnes of zinc.

<unk> 22 per pound.

And touching on the tonnes of nickel goods $7 46 per pound.

Moving to slide nine consolidated production costs for the fourth quarter amounted to $648 million, which is around 5% higher than the previous quarter with the increase being driven by a higher volume of copper sold by approximately 13%.

Tyler Paulson: Consolidated production costs for the fourth quarter amounted to $648 million, which is around 5% higher than the previous quarter, with the increase being driven by a higher volume of copper sold by approximately 13%. Costs at Casa Rona also increased from the third to the fourth quarter due to higher maintenance and contracting costs, in addition to the third quarter not having a full quarterly contribution given that the transaction closed on the 13th of July. For the full year, production costs totaled $2.1 billion in 2023, which is a 25% increase on the previous year, with most of the year-over-year increase relating to Casa Rona being included, from the completion date of July 13, 2023. The sold volumes of copper and zinc over the same period increased by 25% and 18%, respectively. At an offset level, production costs remained relatively flat year over year, despite global currencies in Chile, Brazil, and Europe somewhat strengthening during the year.

Of course enrollment has also increased from the third to fourth quarter due to higher maintenance and contract costs in.

In addition to the <unk> quarter, most having a full quarterly contribution given that the transaction closed to 13th July.

For the full year production costs totaled $2 1 billion.

In 2023, which is substantially higher percent increase on the previous year with most of the year over year increase relating to controlling the being included.

From the completion date of searching through July to treat.

Just hold volumes of copper and sync over the same period increased by 25% and 18% respectively.

As our asset level production costs remained relatively flat year over year, despite local currencies in Chile, Brazil, and Europe somewhat strengthening during the year.

Tyler Paulson: On a like-for-like basis, so that is to exclude the impact of the Kazronia acquisition, the production costs for 2023 have remained flat compared to the previous year at $1.7 billion. Candelaria's full year cash costs benefited from lower transportation costs that were offset by higher maintenance costs, and on favorable foreign exchange rates, higher mill throughput during the year also contributed to higher costs. Special costs for the year were $2.07 per pound, which was in line with guidance.

On a like for like basis. So that this excludes the impact from the controlling acquisition. The production cost for 2000, <unk> have remained flat compared to the previous year.

One 7 billion.

<unk> full year costs cash costs benefited from lower transportation costs that were offset by higher maintenance costs.

And on the favorable foreign exchange rates.

Higher mill throughput during the year also contributed to higher.

Cash costs for the year were $2 seven per pound, which was in line with guidance.

Tyler Paulson: Cash cost at Casa Rona came in at $1.99 per pound for the year, which was slightly better than the guidance and was driven by stronger production and a higher by-product credit during the year. Japada's full-year cash cost of $2.27 per pound was better than guidance, benefiting from strong gold volumes and pricing compared to our forecast, which improved by-product credits for both the full year and for the fourth quarter. Nevis Corwell's full-year cash cost was slightly above guidance due to lower copper payables and impacts from unfavorable foreign exchange, which was partially offset by lower operating costs. Cash cost for the year was $2.37 per pound at Nevis Corp.

Cash cost our cost of rolling that came in at $1 99 per pound for the year, which was slightly better than the guidance and was driven by stronger production and the higher byproduct credits during the year.

So part of our full year cash cost $2 27 per pound was better than guidance benefiting from strong coal volumes and pricing.

To our forecast, which improved byproduct credits or both the full year and for the fourth quarter.

<unk> full year cash cost was slightly above guidance due to lower copper payables and impacts from unfavorable foreign exchange.

Which was partially offset by lower operating costs.

Cash costs for the year was $2 seven per pound.

Tyler Paulson: Turning to the next slide, potent capital expenditure tracked well to our guidance, with sustaining capex coming in at $797 million compared to a guidance of $755 million. Total capex for the year amounted to $1 billion, including expansionary capital, which is around $100 million lower than our guidance of $1.1 billion for the full year, on a like for like basis. So, again, excluding the impact of the Kazerovna acquisition, the sustaining complex was essentially flat, year-on-year, at around $640 million for the full year. Capsule vendor Casa Rona was $26 million below guidance, primarily due to deferral of material deliveries.

Turning to the next slide total capital expenditure tracked well to our guidance through sustaining capex coming in the $797 million compared to a guidance of $755 million.

Total capex for the year amongst two $1 billion, including expansionary capital, which is around one.

$100 million, although slower than our guidance of $1 1 billion.

For the full year.

On a like for like basis, So again, excluding the impact from the controlling acquisition the sustaining capex was essentially flat.

Year on year at around 604 2 million.

For the full year.

<unk> was $26 million below guidance, primarily due to further material deliveries.

Tyler Paulson: While its expansionary capital at Osmarilla was $75 million lower than guidance, primarily as a result of foreign exchange gains. Moving to the next slide, our full year and four quarter key financial metrics are presented on the next couple of slides. As mentioned earlier, the full-year revenue amounted to $3.4 billion, including four-quarter revenue of $1 billion. We generated adjusted EBITDA of 1.4 billion for the year, including nearly 420 million in the fourth quarter. And adjusted operating cash flow for the year was in excess of a billion, with 362 million generated in the fourth quarter. The adjusted operating cash flow reported this net of $106 million of cash taxes paid during the year.

Expansionary capital that Tulsa, Maria was $75 million lower than the guidance.

Primarily as a result of foreign exchange gains.

Moving to the next slide our full year and fourth quarter key financial metrics are presented on the next couple of slides.

Mentioned earlier to full year revenue amounted to $3 4 billion, including fourth quarter revenue of $1 billion.

We generated adjusted EBITDA of <unk>.

<unk> 4 billion for the year, including nearly $420 million in the fourth quarter.

And adjusted operating cash flow for the year was in excess of $1 billion with 362 million generated in the fourth quarter.

The adjusted operating cash flow reported as net of $106 million of cash taxes paid during the year.

Tyler Paulson: Moving to the next slide, free cash flow from operations was $345 million for the year and $117 million for the quarter, which includes a working capital build of $8 million and $56 million for the full year and fourth quarter, respectively. Full year adjusted earnings were just over $336 million and $80 million quarter to quarter.

Moving to the next slide.

Free cash flow from operation was $345 million for the year and $117 million for the quarter, which includes a working capital build of $8 million and $66 million for the full year and fourth quarter respectively.

Full year adjusted earnings was just over $336 million and $80 million for the fourth quarter.

Tyler Paulson: We remain in a strong financial position and finish the year in a moderate net debt position of roughly $950 million, excluding capital leases. The year-end net debt level corresponds to a leverage ratio of around 0.7 times net debt to EBITDA. Slide 13 presents in greater detail the sources and uses of cash in 2023. Our operations generated cash flow of just over $1 billion during the year. And after accounting for the sustaining capital spend of $727 million and excluding exploration and business development costs of $56 million, the company generated $345 million of free cash flow from operations.

We remain in a strong financial position and finished the year in the moderate net debt position of roughly $950 million excluding capital leases.

The year end net debt level corresponds to a leverage ratio of around two seven times net debt to EBITDA.

Slide 13% in greater detail the sources and uses of cash in 2023.

Our operations generated cash flow of just over $1 billion during the year.

And after accounting for sustaining capital spend of $727 million and excluding exploration and business development cost of $56 million the company generated $345 million of free cash flow from operations.

Tyler Paulson: The company spent net cash of $649 million to acquire 51% of Casa Rona and paid $25 million as part of a deferred contingent payment relating to the Chapada acquisition. The company had cash outflows of close to 90 million in interest and lease costs, and had a net cash inflow of close to $50 million relating to FX and diesel derivative hedge positions. Substantially all of the M&A growth and expansionary capital expenditure during the year was funded through debt, with the company drawing net debt proceeds of $1 billion and $39 million during the year. Lastly, the company continues to pay an attractive dividend of $0.36 Canadian per share, which amounted to $206 million US for the year. The company also distributed dividends to non-controlling interests in Candelaria and Casa Rona totaling $55 million.

The companys net cash of $649 million to acquire a 51% of course enrollment and paid $25 million as part of a deferred contingent payment.

<unk> to the <unk> acquisition.

The company had cash outflow of close to nine 2 million and interest in these costs.

And had a net cash inflow of close to $50 million relating to ethics and diesel derivative hedge positions.

Substantially all of the M&A growth in expansionary capital spend during the year was funded through today with the competent drawing net debt proceeds so.

$1 billion and $39 million during the year.

Lastly, the company continues to pay an attractive dividend of 36 cents Canadian per share, which amounted to 206 million U S for the year.

The company also distribute the dividends to Noncontrolling interest in Candelaria and Corona.

$55 million in total.

Tyler Paulson: The company ended the year with just under $270 million in cash. The company continues to have a strong liquidity position with available liquidity headroom in our RCF of 1.5 billion and ourselves at year-end. So with that, I'll have to go back to Jack.

The company ended the year with just under $217 million in cash.

The company continues to have a strong liquidity position with available liquidity headroom.

Our Rcs of one 5 billion.

As of year end.

So with that I'll hand, the call back to Chuck.

Jack Lundin: Thank you, Titor. This slide highlights near-term growth opportunities for the company. We're evaluating the Casaronis additional 19% call option, which we are able to exercise on the one year anniversary, which is in July of this year. At current production levels, this has the potential to add approximately 25,000 tons of copper to our annual production profile. As mentioned earlier in the presentation, Candelaria received its new EIA, which allows the mine life to be extended to 2040, enabling us to advance the Candelaria Underground Expansion Project, otherwise known as QGEP, which has the potential to add up to roughly 15,000 tons of copper production per year on an attributable basis. We are undertaking underground mine design optimizations for QGEP, which incorporates the updated underground mining regulations from the mining authorities in Chile, known as Ternatio Mines.

Thank you Tiger.

This slide highlights near term growth opportunities for the company.

We are evaluating the cassa <unk> additional 19% call option, which we are able to exercise on the one year anniversary, which is in July of this year.

At current production levels. This has the potential to add approximately 25000 tons of copper to our annual production profile.

As mentioned earlier in the presentation Kendall area received their new EIA, which allows the mine life to be extended to 2040, <unk>, enabling us to advance the candle area underground expansion projects, otherwise known as <unk>, which has the potential to add up to roughly 15000 tons of copper production per year on an attributed.

<unk> basis.

We are undertaking underground mine design optimizations for Q jet, which incorporates the updated underground mine planning regulations from the mining authorities in Chile known as <unk>.

Jack Lundin: Costing and scheduling will be included in this updated study. As demonstrated by these two opportunities, we have a clear pathway to augment over 40,000 tons of copper a year, which would represent an approximate 10% increase on an attributable basis of our production for the company, based on the midpoint of guidance. Transitioning from operations to projects, Jose Maria is being strategically advanced. Several areas of focus include pursuing optimization studies to enhance mining and milling production plans, concentrate transportation routing, mine site and offsite infrastructure requirements, and water source and water management planning. Work continues on permitting with the technical review of the tailings dam design and the permit application for the access site road and power line. Minor permits and environmental impact assessments for road maintenance were completed and submitted for approval during the fourth quarter of last year.

Costing and scheduling will be included in this updated study.

Demonstrated by these two opportunities we have a clear pathway to augment over 40000 tons of copper a year, which would represent an approximate 10% increase on an attributable basis of our production for the company.

Based on the midpoint of guidance.

Transitioning from operations the project's Jose Maria is being strategically advance.

Areas of focus include pursuing optimization studies to enhance mining and milling production plans concentrate transportation routing mine site, and offsite infrastructure requirements and water source and water management planning.

Work continues on permitting with the technical review of the tailings dam design and the permit application for the access site road and power lines.

Minor permits and environmental impact assessments for road maintenance were completed and submitted for approval during the fourth quarter of last year.

Jack Lundin: The newly elected San Juan provincial governor was elected in July and has taken office, and negotiations are set to proceed on the infrastructure agreements for provincial royalties. In January this year, we had the pleasure of meeting the governors of the Atacama region in Chile and San Juan province in Copiapo, following a tour of the Candelaria mine made by the governor of San Juan and his delegation. We highlighted ways our infrastructure could add to the development of the Vicua District and ultimately benefit both countries. They seemed very receptive and supportive of integration initiatives and of advancing mining on both sides of the Chilean and Argentinian border.

The newly elected San Juan Provincial Governor was elected in July and has taken office and negotiations are set to proceed on the infrastructure agreements or provincial royalties.

In January of this year, we had the pleasure of meeting the governors of the <unk> region in Chile in San Juan Province in Copia Po. Following a tour of the candle area mine made by the Governor of San Juan and his delegation.

We highlighted ways, our infrastructure could add to the development of the Vicuna district, and ultimately benefit both countries.

They seem very receptive and supportive of integration initiatives and to advance mining on both sides of the Chilean and Argentinean border.

Jack Lundin: Regarding potential partnerships for the project, various options are being considered, discussions with several parties are ongoing, and we'll update the market as appropriate. Capital Expenditure Guidance is forecast at $225 million for 2024 for the Jose Maria Project. This primarily includes payments for the incoming procurement of long-lead equipment and pre-construction activities, such as road upgrades and geotechnical work, along with permitting activities as described before. Next slide.

Regarding potential partnerships for the projects various options are being considered discussions with several parties are ongoing and we will update the market as appropriate.

Capital expenditure guidance is forecast at $225 million for 2024 for the Jose Maria project.

This primarily includes payments for the incoming procurement of long lead equipment and Preconstruction activities, such as road upgrades and geotechnical work along with permitting activities as described before.

Next slide.

Jack Lundin: Earlier this year, we announced updated three-year guidance for production, operating cash costs, and capital expenditures for 2024. The 2024 Updated Guidance Outlook is in line with previously disclosed production ranges. Consolidated copper production in 2024 has stayed consistent with previous estimates, while consolidated zinc production ranges have been slightly adjusted.

Earlier this year, we announced updated three year guidance for production operating cash costs and capital expenditures for 2024.

2020 for updated guidance outlook is in line with previously disclosed production ranges Consol.

Consolidated copper production in 2024 has stayed consistent with previous estimates while consolidated zinc production ranges have been slightly adjusted.

Jack Lundin: Consolidated gold production ranges have increased for 2024. In 2025, consolidated copper and gold ranges have increased, while zinc guidance has stayed in line with previous disclosure. Copper production is forecast to be 366 to 400,000 tons on a consolidated basis in 2024.

Consolidated gold production ranges have increased for 2024.

In 2025 consolidated copper and gold ranges have increased while zinc guidance has stayed in line with previous disclosure.

Copper production is forecast to be 366 to 400000 tonnes on a consolidated basis in 2024.

Jack Lundin: Higher consolidated copper production in 2024 is mainly due to mine sequencing and the mine plan copper grade profile at Candelaria. Additionally, Casarona's copper production guidance has been an increase to 120,000 to 130,000 tons on an annual basis to reflect higher plant throughput rates in the mill. Zinc production is forecast to increase to 195,000 to 215,000 tons on a consolidated basis in 2024, increasing further over the three-year period to reach 220,000 to 240,000 tons in 2025 and 2026 as the benefits of ZEP are realized.

Higher consolidated copper production in 2024 is mainly due to mine sequencing and the mine plan copper grade profile at Kendall area.

Additionally, <unk> copper production guidance has been increased to 120 to 130000 tons on an annual basis to reflect higher plant throughput rates in the mill.

Zinc production is forecast to increase to 195 to 215000 tonnes on a consolidated basis in 2024, increasing further over the three year period to reach 220 to 240000 tonnes and 25 and 26 as the benefits of <unk> are realized.

Jack Lundin: Consolidated gold production is forecast to be 155 to 170,000 ounces in 2024 and then taper through the three year outlook period. Higher consolidated gold production in 24 is due mainly to the planned gold grade profile at Candelaria. Nickel production is forecast to be 10,000 to 13,000 tons in 2024. The production profile is driven by mine sequencing and nickel grade at Eagle East and the Eagle East extension ore bodies. Cash costs at several of the sites have decreased, including Candelaria, Ciapatta, and Nevis-Corvo, and part of this is driven by increased volumes, and part of it is due to cost-saving initiatives. However, costs at Casaronis have increased and reflect lower grades, higher mill throughputs, as well as lower byproduct credit.

Consolidated gold production is forecast to be 155 to 170000 ounces in 2024, and then taper through the three year outlook period.

Higher consolidated gold production in 'twenty four is due mainly to the planned gold grade profile candle area.

Nickel production is forecast to be 10000 to 13000 tons in 2020 for the production profile is driven by nine sequencing and nickel grade at Eagle East and the Eagle East extension ore bodies.

Cash costs at several of the sites have decreased including candle area Ciabatta and nervous corvo.

And part of this is driven by increased volumes and part of it is due to cost saving initiatives.

Costs at <unk> have increased and reflect lower grades higher mill throughput as well as lower byproduct credits.

Jack Lundin: In the next slide, this year, we plan to spend approximately $840 million on sustaining CapEx at our six operating mines, which is in line with last year, where we spent $727 million, taking into account only half the year of Castorona. Approximately 50% of the sustaining capex is earmarked for capitalized stripping or underground mine development. $225 million, as I mentioned before, of expansionary CapEx is scheduled for Jose Maria. Now looking at our exploration potential. Drilling at Jose Maria is underway with three active rigs at Cumbre Verde to target the same structures that intersected high-grade mineralization on the neighboring property and run into Jose Maria. Additional drill pads are being developed that will give us better access to the targeted areas. Drilling at Portonis target has been completed, which targeted a new potential porphyry system to the west of Jose Maria.

And the next slide.

This year, we plan to spend approximately $840 million in sustaining capex at our six operating mines, which is in line with last year. We spent 727 million taking into account only half of the year of Casper owners.

Approximately 50% of the sustaining capex is earmarked for capitalized stripping or underground mine development.

$225 million as I mentioned before of Expansionary Capex is scheduled for Jose Maria.

Now looking at our exploration potential.

Drilling at Jose Maria is underway with three active rigs at <unk> to target the same structures that intersected high grade mineralization on the neighboring property and run into Jose Maria.

Additional drill pads are being developed that will give us better access to the targeted areas.

Drilling <unk> target has been completed which was targeting a new potential porphyry system to the west of Jose Maria.

Jack Lundin: These initial holes were scout holes and will be very helpful in planning the next drill program. At Casaronis, exploration drilling has started with three rigs at the Angelica Oxide Sulfide Target and at Casaronis Deep. Both are near mine targets that would add potential resources and mine life to the existing operation. We have finished up the borehole electromagnetic survey at EGLE and have closed off aspects of exploration immediately below EGLEast.

These initial holes, where scout holes and we will be very helpful and planning the next drill program.

At <unk> exploration drilling has started with three rigs at the Angelica mill oxide sulphide target and at Casoron as deep.

Both our near mine targets that would add potential resources and mine life to the existing operation.

We have finished up the borehole electromagnetic survey at Eagle and have closed off aspects of exploration immediately below Eagle East.

Jack Lundin: In addition, geophysics programs will be completed to determine if a potential target remains at depth and to the south of the initial area of interest. We remain optimistic in this area. Eagle continues to deliver despite the backdrop of depressed nickel prices, which dropped by more than 37% last year.

In addition, geophysics programs will be completed to determine if a potential target remains at depth and to the south of the initial area of interest.

We remain optimistic in this area.

Eagle continues to deliver despite the backdrop of depressed nickel prices, which have dropped by more than 37% last year.

Jack Lundin: We have extended the mine life of EGLE to up to 2029 by optimizing the mine plan and implementing more bulk mining in the EGLE East Extension area and reduction of other costs through insourcing of key contracts. We will continue to evaluate exploration targets to determine high potential opportunities to extend the mine life further at this great asset. Lundin Mining currently stands in a favorable position, projecting more than 15% growth in our copper production compared to the previous year. Additionally, we are strategically positioned with two significant near-term growth opportunities, which include, as mentioned before, the Casper Ronis coal option and Candelaria's Q-jet. Combined, we have the potential to add, in the near term, as mentioned, over 40,000 tons of copper annually. The team here continues to advance the pursuit of these opportunities, and we anticipate to be providing updates later this year.

We have extended the mine life to Eagle to up to 2029 by optimizing the mine plan and implementing more bulk mining in the Eagle East extension area and reduction of other costs through in sourcing of key contracts.

We will continue to evaluate exploration targets to determine high potential opportunities to extend mine life further at this great asset.

Lundin mining currently stands in a favorable position projecting more than 15% growth in our copper production compared to the previous year. Additionally, we are strategically positioned with two significant near term growth opportunities, which include as mentioned before the cash rate on this call option and Kendall areas too Jeff.

Combined we have the potential to add in the near term as mentioned over 40000 tons of copper annually.

The team here continues to advance the pursuit of these opportunities and we anticipate to be providing updates later in this year.

Jack Lundin: Our asset base has grown significantly in South America with the completion of Casaronis, and now over 80% of our copper production comes from top-tier jurisdictions. Year over year, we grew our reserve base to over 23 billion pounds of copper on a 100% basis and initiated significant new exploration drill programs at Casarones and also at Jose Maria. Operationally, Lundin Mining produced a record for annual copper and zinc production in 2023.

Our asset base has grown significantly in South America with the completion of <unk>.

And now over 80% of our copper production comes from top tier jurisdictions.

Year over year, we grew our reserve base to over 23 billion pounds of copper on a 100% basis and initiated significant new exploration drill programs at <unk> and also at Jose Maria.

Operationally Lundin mining produced a record in annual copper and zinc production in 2023.

Jack Lundin: Our assets are performing better, and we will continue to focus on optimizing mine plans and improving cost structures at all of our mines. In conclusion, with the team we now have in place and the improvements we have made, I am excited about the future for Lundin Mining and look forward to creating shared value for our stakeholders. Our company possesses a truly unique opportunity, underscored by our current portfolio of mining operations and the exceptional Jose Maria Development Project. Anchored in the burgeoning Vicua District, we are committed to maintaining discipline and focus as we progressively expand our operations in this region, while concurrently optimizing profitability across all our global operations. Thank you for your time.

Our assets are performing better and we will continue to focus on optimizing mine plans and improving cost structures at all of our mines.

In conclusion with the team we now have in place and the improvements we have made I am excited about the future for lundin mining and look forward to creating shared value for our stakeholders.

Our company possesses a truly unique opportunity underscored by our current portfolio of mining operations and the exceptional Jose Maria development project.

<unk> in the burgeoning Laconia district, we're committed to maintaining discipline and focus as we progressively expand our operations in this region, while concurrently optimizing profitability across all our global operations. Thank.

Thank you for your time, we would now like to open the lines for any questions.

Operator: We would now like to open the line for any questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number 1 on your telephone touchtone phone. Should you wish to decline from the polling process, please press star followed by the number 2. If you are using a speakerphone, please lift the handset before pressing any key.

Alright, thank you.

Ladies and gentlemen, we will now begin the question and answer session.

Should you have a question. Please press star followed by the number one on your telephone Touchtone phone.

Should you wish to the claim from the buying process. Please press star followed by the number too.

If you are using a speaker phone please lift the handset before Bruce any keys.

Operator: One moment, please for your first question. Your first question comes from Ayoanis Mazboules from Morgan Stanley. Please go ahead. Hello, Jack and Tim.

One moment. Please for your first question.

Your first question comes from.

<unk> <unk> from Morgan Stanley. Please go ahead.

Hello, Joe.

Operator: Thank you very much for the presentation. A couple of questions from my side. The first is about Jose Maria.

Thank you very much for the presentation.

Couple of questions from my side the first one.

Jose Maria.

Jack Lundin: We have continued to see inflation across the industry over the past year. How confident are you in keeping the Jose Maria capex in check? And within that, can you talk about the optimization studies you're undergoing, and how much of that is focused on OPEX versus CAPEX? Thank you. Hi Jonas, thanks for the question.

We continue to see inflation across the industry over the past year, how confident are you on keeping the Jose Maria Capex in check.

And we've seen that can you talk about the optimization studies you are undergoing how much of that is focused on opex versus capex. Thank you.

Hi, <unk> thanks for the question.

Jack Lundin: Jose Maria, we do have a pretty comprehensive work package this year to look at a number of things to bring down costs. I think what we're seeing in the industry, and where inflation has really hit a lot of costs for our existing operations, we're trying to see where we can bring down costs in different areas. I think things have stabilized a little bit, and we're looking at updating our operating costs as well as our capital costs. I think over the year what we're doing with the trade-off studies when it comes to infrastructure layout, how we can tighten up spacing, how we can minimize our footprint, also how we need to bring in our road power lines and access infrastructure as well.

Jose Maria we do have a pretty comprehensive work package. This year to look at a number of things to bring down costs I think what we're seeing in the industry and where inflation has really hit a lot of costs for our existing operations. We're trying to see where we can bring down cost in different areas for Jose Maria I think.

Things have stabilized a little bit and we're looking at updating our.

Our operating cost as well as our capital cost and I think.

Over the year, what we're doing with the tradeoff studies when it comes to infrastructure lay out how we can tighten up spacing, how we can minimize our footprint also.

We need to bring in our road power line and access infrastructure as well.

Jack Lundin: We mentioned that one of our big trade-offs is looking at where we want to be shipping our concentrate out of. So our base case in the feasibility study had us going through Argentina out east, whereas now we're also looking at an opportunity which has significant cost savings and puts us in a much better position if we can move concentrate west out through the Pacific coast. So I think that's a big item that we're looking at, and I also mentioned that we're doing hydrology and water studies as well. Water management is a big focus for us this year. So we're looking at all aspects of the project where we can bring down costs and where we can basically de-risk and improve the executability of the project. And Tiger has a comment to add.

You mentioned that one of our big trade offs is looking at where we want to be shipping our concentrate out of so our base case and the feasibility study had us going through Argentina out east, whereas now we're also looking at an opportunity, which has significant cost savings and puts us in a much better position. If we can move concentrate west out through the.

Pacific Coast. So I think that's a big item that we're looking at and then also mentioned that we're doing hydrology and water studies as well water management is a big focus for us. This year. So we're looking at all aspects of the project on where we can bring down costs and where we can basically de risk and improve the executability of the.

The project units.

And tighter has a comment to add maybe just to add.

Tyler Paulson: Maybe just to add, like, inflation is one side of the story, but obviously the devaluing of local currency is the other side of the same story. So, after Millet got elected, there was a big devaluation in mid-December where the official rate went from around about $3.50 to over $800 now.

Inflation is one of the items as already but obviously the devaluing local currency the patients as the outside of the same story so.

After <unk> there was a big devaluation in mid December where deals which will rate went from round about 350 to the dollar to over $800 to the dollar so.

Tyler Paulson: In terms of our dollar-cost funding, that obviously balances out somewhat against the inflation we have. And what we also have yet to determine is actually how much of both CAPEX and OPEX is going to be PESA's denominated expenditure in the first place. So those details have still to be worked through in more detail. Great, thank you for that. And second question... Given the significant capex needs again of Jose Maria, one would argue that you could defer the Caserone stake purchase and or the Candelaria-QGIP growth option to a later stage so as to preserve cash for the Jose Maria sanctioning. How would you respond to this argument?

In terms of our dollar cost funding, obviously balances out some of those against the against the inflation we have.

And if you also have yet to determine this OXEA how modules will both capex and opex is going to be past us denominated expenditure in the first place. So those details are still to be.

Walk through in more detail.

Okay, great. Thank you for that.

Second question.

Given the significant opportunities we cannot for summary, one would argue that you could defer to the customer on a stake purchase.

And or the Candelaria to chip.

Gross option to a later stage so as to preserve cash into the Jose Maria.

Sanctioning.

How would you respond to this argument.

Jack Lundin: I mean, when it comes to capital allocation, we have to keep our opportunities open. And I think right now, for near-term growth, it looks like Casaronis and Candelaria make the most sense. But of course, as we study and advance our de-risking of Jose Maria, we have to look at all opportunities. What is exciting is that they're all kind of centered in the same area.

I mean, when it comes to capital allocation, we have to keep our opportunities open and I think right now near term growth it looks like Casoron us and candle area and make the most sense, but of course as we study and advance.

Our derisking of Jose Maria we have to look at all opportunities. What is exciting is they're all kind of centered in the same area and I think when we look at synergies for these assets anything that we do we want to we want to be able to minimize cost as much as possible and bring in near term profitability. So.

Jack Lundin: And I think when we look at synergies for these assets, anything that we do, we want to be able to minimize cost as much as possible and bring in near-term profitability. So, you know, I think that, unless Titor has anything to add, this is where we're focusing on these three areas in the near term. Yeah, and I don't think they're mutually exclusive.

I think that unless tighter has anything to add this is where we're focusing on these three areas in the near term yes.

And I don't think they're mutually exclusive I mean, we're talking about the partnership alignment on the whole summary, let's see where we land with <unk>.

Tyler Paulson: I mean, we are talking about the partnership alignment with Jose Maria. Let's see where we land with that, but that's obviously part of the equation of capital allocation. We want to assess and go after all the opportunities we have in the portfolio, in a responsible manner, of course. Great, thanks very much. Thank you. Your next question comes from Orest Wowkodaw from Scotiabank. Please go ahead. All right, good morning, following up on the last. Is there a partnership process for Jose Maria ongoing right now?

The doctor, but Thats, obviously part of the equation of capital allocation.

And we want to assess and go after all the opportunities we have in the portfolio.

In a responsible manner of course.

Great. Thanks very much.

Alright, thank you.

Next question comes from Rs.

From Scotia Bank. Please go ahead.

Hi, good morning.

Following up on the last set of questions.

Is there a partnership process for Jose Maria ongoing right now or do you need to.

Operator: Or do you need to complete, I guess, the stability agreement and the updated technical report before that really gets going? And I guess what I'm wondering is, could we see a partner before those items are finalized? Or is that the partnership likely going to come after those milestones? Hey, Orest, thank you for the question. I can start here and then the team can chime in as needed.

Complete I guess the stability agreement the updated technical report before that really gets going and I guess, what I'm wondering is could we see a partner before those items are finalized or is that is the partnership likely going to come after those milestones.

Thank you for the question I can start here and then the team can chime in as needed.

Jack Lundin: You know, discussions are ongoing, and so the process has kicked off. I mean, we are looking at all opportunities and, I think, de-risking in parallel. None of these things happen overnight, and so we have to continue to, you know, progress with looking at the formation of a framework for fiscal stability in Argentina. As I mentioned, and it's well known, we were able to meet with the president, and we have, you know, good engagement at the local level in the San Juan province and also in the Atacama region in Chile, where now Casarones and, of course, Candelaria are

Discussions are ongoing and so the processes has kicked off I mean, we are looking at all opportunities and I think de risking and parallels none of these things happen overnight and so we have to continue to.

Progress with looking at formation of a framework for fiscal stability in Argentina, as I mentioned, and it's well known we were able to meet with the president and we have good engagement at the local level and the San Juan Province, and also in the <unk> region in Chile, where now cast their own us and of course candle area or so.

Jack Lundin: So, you know, we're very focused on this area, and we have a big presence there, and we understand how things are moving, and it is a bit of a moving target, but there could be a scenario where partnerships are formed before fiscal stability, and ideally, they come together around the same time, and, you know, we're working towards that. Okay, any potential timeline at this point for the completion of the Technical Report? Yeah, so it depends on a number of these studies that we're working on that are really kind of in the thick of it in terms of the data that we're collecting and the scenarios that we're running and obviously the engineering work that goes on with it and some consultants that are supporting it. So, you know, it does seem like it will be a second half of the year item. And of course, you know, it's hard to commit when there are a lot of moving parts to that.

Sure.

Very focused in this area and we have a big presence there and we understand how things are moving and it's it is a bit of a moving target, but there could be a scenario where partnerships are formed before fiscal stability.

Daily they come together around the same time and we're working towards that.

Okay and any potential timeline at this point for the completion of the technical report.

Yes, so it depends on a number of these studies that we're working on that are really kind of in the thick of it in terms of the data that we're collecting in the scenarios that we're running and obviously engineering work that goes on with it and some consultants that are supporting so.

It does seem like it will be a second half of the year item.

And of course, it's hard to commit when there's when there's a lot of moving parts to that but as soon as we feel like we're ready to.

Jack Lundin: But as soon as we feel like we're ready to put a pin in it, then we will come to the market with an update. Okay, and then just as a follow-on. What's the expected timeline for the Chapada Expansion Study, or has that now been deferred?

And in that then we will come to the market with an update.

Okay, and then just as a follow on.

What's the expected timeline for the chip potash expansion study or is that has that now been deferred.

The <unk> expansion study has been deferred I mean, what we're focusing on <unk> of course is right now near mine opportunities and improving.

Jack Lundin: I mean, what we're focusing on at Chapada, of course, is right now, near-mine opportunities and improving the performance of the existing operation. And then we're drilling out Sauva, and we'll be conducting a scoping study on that opportunity. So, you know, it's really what we have today with our existing operation and then growing Sauva, which is about 15 kilometers away. And it ties up with Sauva as well as the high-grade formiga or higher grade formiga formation.

The performance of the existing operation and then were drilling outside of <unk> and will be conducting a scoping study on that opportunity. So.

It's really what we have today with our existing operation and then growing <unk>, which is about 15 kilometers away and is tied this over as well as the high grade for Amiga or higher grade Formiga formation. So.

Jack Lundin: So it's an exciting opportunity that we're going to be running a scoping study on this year. Okay, and then finally, if I could, what's the expected timeline for releasing the drill results to the market for Cumbra Verde? Yeah, so drilling is ongoing. We've got three rigs turning right now at Cumbre Verde, you know, some exciting prospects that we're drilling into, and some of the visitors that were down in Argentina and Chile in January would have seen that the drill pads were being formed. So, you know, hopefully, as soon as we have more information, probably later in the quarter, early Q2, we could come out with some results. Thank you. Thank you. Your next question comes from Edward Goldsmith from Deutsche Bank. Please go ahead.

Citing opportunity that we're going to be running a scoping study on this year.

Okay, and then finally, if I could.

Any idea on the expected timeline for releasing drill results to the market for Cobra Verde.

Yes, so drilling is ongoing we've got three rigs turning right now at <unk> day.

Some exciting prospects that we're drilling into and some of the visitors that were down in Argentina, and Chile in January would have seen that the drill pads were being formed so.

Hopefully as soon as we have more information publicly later in the quarter early Q2, we can come out with some some results.

Thank you.

Alright. Thank you. Your next question comes from <unk> <unk> from Deutsche Bank. Please go ahead.

Operator: Hi, thank you for the presentation. I have two questions from my side. Firstly, on the timeline for the operational asset reviews and the next wave of synergies with Candelaria and Casarones, just if you could give some more color around that and the level of improvement being targeted there. And then, secondly, on the drilling underway at Casarones, can you give us an idea of the exploration potential there? Yeah, I can touch on the exploration potential and then I'll hand it over to our Chief Operating Officer to talk about, you know, optimization work that's ongoing at our Chilean assets. But right now, as mentioned, we've got some rigs turning on the Argentinian side on the Jose Maria property targeting this, what's called, Cumbre Verde, which, you know, we hope to be an extension of some of the neighboring properties And then at Casaronis, we've got two targets that we're drilling into right now. One is called the Angelica oxide and sulfide zone.

Hi, Thank you for the presentation two questions from my side Firstly on.

The timeline for the operational asset reviews at the next wave of synergies candelabra in concert right.

If you could give some more color on the level of improvement being targeted there and then secondly on the trading underway at Casa Berardi can you give us an idea on the exploration potential there.

Yes, I can touch on the exploration potential and then I'll hand, it over to our Chief operating officer to talk about optimization work, that's ongoing at our Chilean assets, but right now as mentioned, we've got some rigs turning in the Argentinean side on Jose Maria property targeting this what's called the <unk>.

Bear day target, which we hope to be an extension of some of the neighboring properties.

That we'll look to test.

Either veining of Brecciate zones.

At <unk>, we've got two targets that we're drilling into right. Now one is called this angelika oxide and sulphide zone. So we're drilling through the oxides into the sulfide deep area, which has never been drilled before but we know we know it is an attractive and highly prospective target couple like about a kilometer away.

Jack Lundin: So we're drilling through the oxides into the sulfide deep area, which has never been drilled before. But we know it's an attractive and highly prospective target, a couple of kilometers away or two kilometers away from the existing open pit. And then we're drilling at Casaronis deep, so near the pit, and looking to target deeper sulfide zones that could be added eventually or quickly to the resource at Casaronis. So about three rigs turning there and three rigs turning at Cumbre Verde. I think we'll add one more rig as well to get up to seven this drill season.

Or two kilometers away from the existing open pit and then were drilling at Casper owners deep so near the pit and looking to target deeper sulfide zones that could be added eventually or quickly or to the to the resource at <unk>.

About three rigs turning back and three rigs turning at <unk>.

<unk> day, I think will add one more rig as well to get up to seven and this drill season.

Jack Lundin: And then, you know, we'll come to the market with an update once we have some meaningful results. But I'll hand it over to Juan Andres to talk about the operations. Thank you, Jack.

And then we'll come to the market with an update once we have some meaningful results.

I'll hand, it over to Andre to talk about the operations.

Thank you Jack yes regarding the Optimisation in Japan in Candelaria, we're well advanced on the full potential initiatives that we launched last year.

Juan Andres Morel: Yes, regarding the optimization in Chepan and Candelaria, we're well advanced on the full potential initiatives that we launched last year. In both operations, we're seeing some low-hanging fruit results, and they have already been incorporated in our 2024 budget. So part of the improvements in C1 costs are attributed to those optimizations.

In both the operations, we're seeing some low hanging fruit results have been already incorporated in our 2020 for budget so part of the.

Improvements in the C. One costar attributed to those optimizations, but we'll continue to look at more opportunities as we move forward and we're very confident that we will be able to increase our performance in both assets.

Juan Andres Morel: But we continue to look at more opportunities as we move forward, and we're very confident that we'll be able to increase our performance in both areas. Thank you. Thank you. Your next question comes from Dalton Baretto from Canaccord. Please go ahead. Thank you. Good morning, guys.

Thank you.

Thank you.

Your next question comes from Dalton Barreto from Canaccord. Please go ahead.

Thank you hi, good morning, guys.

Operator: I wanted to also ask about Jose Maria and Jack. There's some language in the MD&A that talks about maybe looking at a bigger operation, a bigger mill size. I'm just wondering kind of what your thinking is there and how much bigger we're talking about. Yeah, hey, Dalton, good question.

Wanted to also ask about Jose Maria Jack There's some language in the MD&A that talks about maybe looking at a bigger operation a bigger mill size I'm, just wondering kind of what your thinking is there and how much bigger we are talking about.

Yeah, Hey, Delta and good question. So that's part of the trade off studies as well that we're looking at when we go into our mine plan and mine optimization work. So we're looking at utilizing.

Jack Lundin: So, you know, that's part of the tradeoff studies as well that we're looking at when we go into our mine plan and mine optimization work. So, we are looking at utilizing the existing size of the mills that we already have in place. I think we did right size the purchase of those mills that are currently coming into the country today. But we've looked at kind of expanding from anywhere from 150 to 200,000 tons per day and kind of in and around those bookends to see what the optimal milling rate would be. So, you know, pretty significant in size when you compare it to Candelaria or Casa Ronas. These sites do around 75 to 80,000 tons per day, 85,000 tons per day.

Utilizing the existing size of the mills that we already have in place I think we did rightsize the purchase of those mills that are currently coming into country today, but.

But we've looked at kind of expanding from anywhere from 150 to 200000 tons per day and kind of in and around those bookends to see what the optimal milling rate would be so.

Pretty significant in size when you compare to candle area Casoron as these sites to around 75 to 80000 tons per day 85000 tonnes per day.

Jack Lundin: So quite a sizable operation, but we're not looking at getting, you know, significantly smaller or, you know, vastly larger for Jose Maria. It's really just looking at how we can push tonnages. We're looking at kind of ore hardness during the earlier parts of the mine plan and then just seeing, you know, what optimal rates we could run with, utilizing the infrastructure or utilizing the assets that we've already purchased. Okay, and then I think you said earlier that you're looking at maybe moving concentrate now through Chile, which is obviously great, considering the space at the Candelaria port. I'm just wondering if that means you can also potentially bring in water and power from the Chilean side and maybe use that desal plant?

So quite sizeable operation, but we are not looking at getting a significantly smaller or.

Vastly larger for Jose Maria It's really just looking at how we can push tonnages, we're looking at kind of ore hardness. During the earlier parts of the mine plan and then just seeing what optimal rates, we could we could run with us.

Utilizing the infrastructure that are utilizing the assets that we've already purchased.

Okay, and then I think you said earlier that you are looking at maybe moving concentrating now to Chile, which is obviously great considering the.

Space at the Candelaria pork.

Wondering.

Does that mean, you can also potentially bring in water and power in from the Chilean side, and maybe use that diesel plant.

Jack Lundin: Yeah, Dalton, so part of the work that we're doing, of course, is looking at logistics and transport for our produced product. Of course, we're also looking at the longer term, what it means for building infrastructure, given that we already have a port desalination facility on the Chilean side. You know, this plays into the broader strategy and the long-term vision for the district. Strategically, Casa Ronas is located about 20 or 25 kilometers away from Jose Maria, and it's all part of the Vicua district.

Yes, adult and so part of the part of the work that we're doing of course is looking at logistics and transport of our of our produce product of course, we're also looking at longer term what it means for bringing infrastructure given that we already have a port in desalination facility on the on the Chilean side.

This plays into the broader strategy for the long term vision for the district strategically Castle Rona is located about 20 or 25 kilometers away from Jose Maria and it's all part of the Vicuna District. So at one point in time being able to bring in water and power into this area from.

Jack Lundin: So, at one point in time, being able to bring water and power into this area from either side means a lot to the district and can really unlock a lot of value. You know, so these are the things we have to look at in different phases. I think right now, in the near term, looking at bringing concentrate, you know, as opposed to going through Argentina, bringing it through Chile makes the most sense. We're really focused on that. And then at a later time, we would look at what it makes sense for desalinated water or even perhaps power.

Other side means a lot to the district and can really unlock a lot of value.

So these look we have to look at it in different phases, I think right now near term looking at bringing concentrate.

As opposed to going through Argentina, bringing it through Chile makes the most sense, we're really focused on that and then at a later time, we would look at what does it make sense for for desalinate, it or even perhaps power, but right now the focus is concentrate shipments.

Jack Lundin: But right now, the focus is on concentrating shipments. Okay, and if I can just squeeze one more in, a slightly different question for you, Jack. We're starting to see assets change hands in the Iberian Pirate Belt with the Mazda deal last year and now first quantum putting Las Cruces on the block. Are you seeing much inbound interest in Neves Corvodel? And what are your thoughts around that operation?

Okay, and if I can just squeeze one more in a slightly different question for you Jack.

Starting to see assets change hands in the Iberian pyrite belt with the match the deal last year and now first quantum mob, putting less pressure on the block are you seeing much inbound interest on not nebbish corvo at all and what are your thoughts around that operation.

Jack Lundin: Thanks, Dalton. So, you know, I think we have been starting to get some inbound calls about what our European assets mean to the company. Of course, we've focused our growth, growing a lot in copper predominantly, and then the strategic hold and the stronghold that we have here in the Atacama region and now as well in San Juan province in the Vicua district. Our focus on growth is really growing in this area. We do like the diversity of the company. We have meaningful zinc production coming from our European assets. We also think that we could derive a lot of value from these assets.

Thanks Dalton so.

We have been starting to get some inbounds about what our European assets mean to the company of course, we have focused our growth growing a lot in copper predominantly and then the strategic hold in the stronghold that we have here in the outer camera region known as well in San Juan Province in the Vicuna District.

Our focus on growth is really growing in this area, we do like the diversity play of the company we have.

Meaningful zinc production coming from our European assets. We also think that we could attract a lot of value from these assets. So we're playing kind of the optionality here and seeing what makes sense, but yes to answer. Your question. We have received inbound interest on what it means for us with our European assets and I think what youre seeing as well in the Iberian pie.

Jack Lundin: So, you know, we're playing kind of the optionality here and seeing what makes sense. But yes, to answer your question, we have received inbound interest in what it means for us with our European assets. And I think what you're seeing as well in the Iberian Pirate Belt, both in Spain and in Portugal, I think there are some players coming in there that are looking to do a consolidation effort.

<unk> belt, both in Spain, and in Portugal, I think there are some players coming in there that are looking to do a consolidation effort.

Jack Lundin: So, of course, we're monitoring that closely and seeing how we can crystallize value in that region. That's great. Thanks, Jack. That's all.

Of course, we're monitoring that closely and seeing.

How we can crystallize value in that region.

That's great. Thanks, Jack that's all for me.

Operator: Thank you. There are no further questions at this time. Please proceed. Okay, thank you very much for those that attended the call today. We're proud of the results of 2023 and looking forward to what will be a strong 2024.

Thank you.

There are no further questions at this time. Please proceed.

Okay. Thank you very much for those that attended the call. Today. We are proud of the results of 2023 and looking forward to what will be stronger in 2024.

Jack Lundin: And again, we look forward to answering any questions as they come our way at a later date. Thank you very much for your time, everyone. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line. Thank you.

And again, we look forward to answering any questions as they come our way at a later date. Thank you very much for your time everyone.

Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that.

Could you. Please disconnect your lines. Thank you.