Q1 2024 IAMGOLD Corp Earnings Call
Thank you for standing by this is the conference operator, welcome to the Aimco first quarter 'twenty 'twenty, four operating and financial results Conference call and webcast. As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad do you need assistance during the conference call you may signal, an operator that things start and Dale.
At this time I would like to turn the conference over to Graeme Jennings VP Investor Relations for Aimco. Please go ahead Mr. Johnny.
Thank you operator, and welcome everyone to our first quarter 2020 for operating and financial results Conference call.
Graeme Jennings: Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Martin Salinas, Chief Financial Officer.
Lebanon, Chief operating officer, and Tim Bradburn, Senior Vice President General Counsel and corporate Secretary.
Joining today from my end goes Toronto Office, which is located on 2013 territory on the traditional lands of many nations, including the Mississauga, just the credit the honest novack Chippewa.
Tony in the Windows peoples.
Thank God, we believe respecting and upholding and digital rights of the standard upon relationships that Foster trust transparency and mutual respect.
Please note that our remarks on this call will include forward looking statements and refer to non <unk> measures.
Courage, you to refer to the cautionary statements and disclosures on their own I FRS measures, including the presentation and the reconciliation of these measures in our most recent MD&A each under the heading non-GAAP financial measures.
With respect to the technical information to be discussed please refer to the information in the presentation under the heading qualified person and technical information.
The slides referenced on this call can be viewed under website.
I'll now turn the call over to our President and CEO Renaud Adams.
Renaud Adams: Graeme and good morning, everyone and thank you for joining us it is a it's an exciting time at Aimco is.
As a company, we're gaining momentum towards our goal of becoming a leading mid tier a modern gold producer.
For the quarter was of course, the first of all I've got to go.
With this achievement, we have brought online a key cornerstone producing assets and are a third producing mine alongside of operations at <unk>.
Our steady run rate caught it all will be among the largest gold mines in Canada, and it's critical for the repositioning of filings.
Scott It provides a higher production base.
Lower cost profile.
A longer life.
Hello generations and girls imports into China.
We believe that what they will be a model of modern mining done right here in Canada and for many of the states to go.
So the whole totally golf team and partner I really want to express my congratulations and appreciation for a job well done.
But the special thought.
Through our resilient project and commissioning teams.
This expands as well to operating James in Quebec in Burkina Faso. As volume goes started this year with strong performance at both <unk> and Westwood.
Positioning the company well on the path towards our guidance targets for the year.
Renaud Adams: Looking ahead, our primary targa is on the space and steady ramp up.
As we will discuss in a moment.
The ramp up has been progressing well with all key equipment proving itself to be able to operate near nameplate and this compared to our targets.
During the year, 90% plus nameplate.
We remain very confident to achieve commercial production in the third quarter of this year.
On the finance side, we will constantly to prioritize the options to return to our 70% interest in Cogs.
As we believe that the value of this project is well above the current market sentiment that repurchase price.
Longer term, we have a clear roadmap for niamh golf with strong free cash flow generation.
Which will be essential to ultimately improve our balance sheet in Delaware.
To our shareholders.
With that we will now dive into the operating and financial results and highlights for the quarter.
Starting with health and safety I am Golar is committed to our guiding principle of zero harm.
Renaud Adams: In every aspect of our business, putting their health and safety of the company's employee contractor and consultant first.
I am going to started the year with a good performance on safety with the days away restricted transfer duty rate of zero point 63, and the total recordable injury rate of <unk> 61 tracking below where we were last year.
I want to take a moment to congratulate us economy, which once again achieved a remarkable performance in health and safety.
The total recordable injury.
Renaud Adams: Some days away restricted transferred duty rate of 0.06.
This is among the best health and safety performance in our industry and is a testament to the park question Allison and commitment to our culture of safety of our people in Virginia.
Uh huh.
On production I am Gonna started the year with strong attributable production of 151000 ounces, including a solid production to 150000 ounces from Westwood.
Which position us well for our annual guidance of 430 to 490000 ounces on an attributable basis and excluding both the production.
As we won't get into a moment, but first quarter production results were driven by the economy being able to operate without disruption and benefiting from positive grade reconciliations couple.
Coupled with the continued ramp up at Westwood as the mine benefits from their rehabilitation of the underground and opening a few mining areas.
The strong production and sales volume translated to a deep long in our cash costs and all in sustaining costs in the first quarter excluding <unk>.
Thousand $53, an ounce and $1493 an ounce respectively.
Proving providing a major benefits to operating cash.
With that I will pass the call over to our CFO to walk us through our financial results and positions Martin.
Thank you Renaud and good morning.
In terms of our financial position I'm gold ended the quarter with cash and cash equivalents of 291, two all yet in.
Martin Salinas: Our credit facility remains undrawn.
Martin Salinas: Waiting to total liquidity of approximately 603.8 million.
We note that was in cash and cash equivalents $76 4 million was held by car to go at the 99 points, even without bias of cat.
This article unincorporated joint venture agreement requires its joint venture partners to fund in about two months' of future expenditures cash goes up right at the beginning of each month.
<unk> and the mountain cash balances approximating the following months expenditure.
Asia can normally pays a dividend in the second half of the year and the size of the dividend is dependent on the cash up basic gap in Burkina Faso, and its working capital requirements, which is impacted by the ability of the company to receive value added tax will be a T.
Reimbursements from the government of the Kina Faso or T cell the V. A T receivables to local banks.
We are seeing an emerging risk with the ability to recoup. These receivables is declining and the company has not received yet T reimbursements in Q2 thousand 23.
Martin Salinas: Q4, 2023 or Q1 2024.
The company still expects the remaining transactions related to the sales of assets and gain in Bali to close this year with gross proceeds of approximately $84 4 million.
Subsequent to quarter end, we announced another amendment to our golf P. But commitments that included a new Ford Southern arrangement and abortion amendment to one of our existing golf PPA arrangements.
The arrangements, where the victim to increase cash flow by more than sapiens <unk> 6 million during the second quarter of 2024 at current gold prices.
The fourth sorry, the arrangement is for study 1250 ounces.
The gold color with the company will also participate in the Gulf price from 'twenty 100 up to 29 25 per ounce at the time ups delivery there.
Therefore, ensuring goldfus participation in the second quarter of 2020 funds should the gold price remain above between 100 per ounce.
These arrangements are similar to the amendments we might previously to transfer the cash impact of the golar delivery obligations out of the first quarter. This year into the first quarter of next year.
These Gulfport every instance allowed for improved financial flexibility for the company at a reasonable cost while also benefiting from favorable for gold prices, particularly in the first half of the year, while we are commissioning and ramping up <unk>.
Looking at our Q1 financials revenue from continuing operations start with $338 9 million from sales of 163000 ounces on a 100% basis at a record average realized price of 2007 and $7 per ounce.
Did we not price includes the impact of the Gulf PPA arrangement that was delivered into during Q1 'twenty 'twenty four.
The strong operating results coupled with the high gold price fell slightly to an adjusted EBITDA of 152 five.
Compared to Ogden same point 6 million in the fourth quarter of 2023, and <unk> 3 million in the first quarter of 2023.
Adjusted earnings per share was 11 cents for the quarter compared to 16 to the fourth quarter 2023, and five cents in the first quarter of 2023.
Looking at the mine site free cash flow, which is calculated as cash flow from mine site operating activities less capital expenditures from the operating mine sites.
Faced with returns its first quarter of positive mine site free cash flow since the restart of operations of $10 5 million.
So can we now mine site free cash flow in the first quarter of steady $5 7 million compared to $18 4 million during the first quarter of 2023.
The Q1 2024 mine such free cash is nature of working capital payments of $58 9 billion, including the impact of the increase in the D O T receivables referred to earlier.
11.1 million.
Martin Salinas: It also includes 13.4 million and tax payments, which are normally paid in the first quarter.
And those data I pass back.
Martin Salinas: The Colter secularism.
Martin will now walk through our operating performance.
Martin Salinas: <unk> and Westwood before we dive into court.
Martin Salinas: How does that guy.
Martin Salinas: <unk> reported attributable gold production Andre and 18000 ounces in the first quarter, which was the highest quarter of productions on record.
High watermark in the nearly 14 years of operation.
Was made possible by our mining operation and being able to perform to plan in the quarter without disruptions and fuel supplies to the sites compounded by higher than expected grades.
Mining activities totaled $11 3 million tons in the quarter with $3 5 million tonnes of ore rates, which are the rates, which are generally in line with our updated plan.
Head grades increase from the prior quarter to $1 52 grams, a tonne due to the continued positive reconciliation upgrades from the reserve model as we mine deeper into phase five.
This positive grade reconciliation and the deeper portions of this economy was seen previously in phase four of the pit and the influenza continent in the early weeks of this quarter. However, we are saying head grades declined in line with the life of mine as volumes from phase six and seven inquiry.
And from increased proportion of stockpile.
On the cost on a cost basis as a kind of reported first quarter cash cost with a thousand $2 per ounce and an all in sustaining costs at $1312 per ounce an improvement from the prior quarter on the higher production and sales volume.
While on a unit basis cost came down.
Our total cost spending in the quarter was in line with plans and reflects the increase in the second half cost profile over the last 12 to 18 months due to the updated royalty rates implemented at the end of the last year, coupled with sustained higher realized prices for inputs such as landed fuel prices transportation.
Martin Salinas: <unk> costs as a result of the security situation in country.
Martin Salinas: With a strong start of the year.
Martin Salinas: If I can is positioned well to achieve our guidance target of 330000 to 270000 ounces attributable production.
Cash costs of between <unk> hundred 40, <unk> hundred dollars, an ounce and an all in sustaining cost of 1675 to $800.
We are continuing to exempt teraglin fortunate districts and extend the mine life of fixed mechanic, which is currently defined out to the end of 2028 with drill campaigns ongoing.
Within the fans to ensure the safety of our teams.
Turning to Westwood.
The first quarter was a major milestone for the operation as the mine not only retiring the highest water are both production since the mine restarted in 2021, but also.
<unk> produced as Martin noted pockets in mind free cash flow of $10 $5 million.
On operations Westwood produced 32000 ounces as the ramp up of underground operations provided increased volumes of higher grade underground material pretty milk supplemented with material from the satellite open pits are granted and for you all.
Our mine from underground totals 83000 tons in the first quarter contributing to an average head grade from underground or phase <unk>, Tox, which has a higher grade from underground in over five years as rehabilitation efforts have allowed access to previously closed higher grade underground stuffs.
The mill throughput in the first quarter was 249000 tonnes at an average blended head grade of $4 27 grams a tonne.
Martin Salinas: 94% recoveries.
The mill availability average, 85% in the quarter, which is roughly about five.
5% below where we would like to be as the planned team managed unplanned maintenance requirement on the Sag mill liners. So the plans are in place to further improve availability through our ongoing maintenance program.
The cost profile for Westwood continues to see improvements where the increase in production.
Cash costs averaged $1236, an ounce and all in sustaining costs averaged $836 an ounce in the first quarter.
Which was also a record since the restart of operations and down nearly 30% from bear the high watermark from last year.
Looking ahead, there is no change to our guidance for the year for the year or with Westwood expected to produce between 100 and 120000 ounces at a cash cost of 450 to $375 an ounce and then they sick between $802000 an ounce.
Work has begun on the plan updated technical report and the mine plan for Westwood, which will be announced later this year and we'll provide details of the results of the last two five years of mine optimization efforts and strategic assessment of the Westwood complex.
So congratulations to the Westwood team for a very special and successful turnaround story.
An example of resilience and Tim efforts and I'm sure Mark account.
Turning to Colorado.
Martin Salinas: With a big Smile on everyone's space. This is a slide in images, we have all been long waiting for report a first of all at the end of the first quarter, but became.
Image refers to a subsequent board.
Mining activities totaled seven 6 million tons in the first quarter, including $1 9 million tons of work.
Combined with a $4 9 million tons of Crazy early stockpile to start the year six 7 million tons of material was available at the end of the quarter for the ramp up of the processing plant.
As we mine through the early benches in their pets, we are saying that the grade control model supports our current reserve model.
Additionally, as mines rates ramp up we are getting visibility on our actual mining costs, which were $3 30 to $1 a ton.
The first quarter with further cost improvement expected through the year.
And exceptional performance at this very early stage it mining operation.
Martin Salinas: The mining didn't come to news to improve efficiencies of the mining operation with New Daily Rick Our records achieved in April in excess of 160000 tonnes call grid.
Hey, good.
Mining rates improvements include the commissioning of two additional autonomous haul trucks the deployment of the second hydraulic electric travel and the commencement of garbled side loading and debates.
Martin Salinas: On processing the first water was primarily focused on commissioning and buildup.
Are they in circuit inventory, which allowed the company to complete its first floor sweeps.
Subsequent to this the ramp up of the plant has been progressing well.
Throughout March and April the crushing and milling circuits utilization rates progressively increase and the mill throughput capacity is in line with our expectation at this stage of the ramp up the.
The primary or secondary crushers I've been operated up to 19 500 tons per hour in our H B G. R and ball mill operated up to 16 100 tons per hour during April in other words.
Together, representing over 95% of nameplate capacity, meaning the primary components of the processing plants have demonstrated their ability to operate near nameplate capacity.
Martin Salinas: This mean it is all about increasing mill availability and stability in order to ramp up the processing circuit utilization rates towards our goal of achieving commercial production in the third quarter of RBC.
Recoveries in the plant has been steadily improving.
And I will now this is prior to startup of the gravity circuit, which will be commissioned later this quarter.
I will now hand, the call back to Martin for a quick discussion on project expenditure.
Thank you.
Before we get into the capital numbers I want to remind everyone that under the latest iPhone as guidelines revenue on cost of sales ought to be recognized from the first site with.
We shipped and sold our first gold bars in April and so we will be recognizing revenue met costs in the second quarter.
Further it is worth reinforcing that our goals will continue to fund operating and capital expenditures through cash calls at 64, 3% interest and will receive 63% of the gold production.
All of that state.
As we discussed project expenditures. Please note that all the cost being quoted around 100% to 100% basis.
Projected capital expenditures in the first quarter totaled 196 three months.
And in June the good project expenditures uptick first gold of 151 7 million.
Which also includes the cost of consumables and supplies inventory purchased during the first quarter 2024.
This brings the total project expenditures incurred for car T gold since the commencement of construction to first gold two 2.935 billion of the block 2.65 billion.
In addition to the project expenditures approximately 27 million of operating expenditures for capitalized related to mining surface cost administration and indirect cost that will be incurred during commissioning ramp up.
Up to commercial production.
Martin Salinas: Other capital expenditures related to ongoing operations of $17 6 million.
Including $8 1 million of capitalized stripping 8 million foot tightenings in earthworks and other projects of one five.
The Delta and timing of these expenditures on line with our forecast guidance for the year.
If we look at the bottom up devoted to any tuning for outlook slide we can see the construction to capitals first goal is finalized.
<unk> $51.7 million.
Accordingly, we have revised our project constructed related capital options.
<unk> gold upwards to $67 million and the total construction capitals for the year, therefore remains solid at $219 million.
The construction both physical is for the additional ancillary infrastructure in earthworks projects that we're outlining the project scope, but not required for first gold.
The other guidance estimates regard to capital expenditures related to operations and capitalized waste stripping are also unchanged.
I'd also like to note that the go take old capital expenditures related to operations. This year are expected to be higher than the life of mine average as the mine extends to the full signings that with Brent to support the life of mine.
The classification of capital expenditures as either sustaining or expansion glad to commercial reduction will be dependent on the timing of cheating conduction and the nitro expenditure.
Two year now.
Thank you Martin.
So our goal. This year is very clear, we need to ramp up the plant availability and utilization to reach commercial production in the third quarter of this year, which will position us very well to achieve our goal of exceeding the year at a throughput rate of approximately 90% of nameplate.
Based on based on this timeline our production guidance for this year at call. They go on a 100% basis is unchanged at between 220, and 290000 pounds, but the year. We continue to estimate that at Cody achieve 90% throughput exiting the year cash costs at that time <unk>.
<unk> to be in the range of approximately 700 to $800 per ounce sold and all in sustaining costs of 11 100 $1200. So.
This bring us to this slide we always like to finish up.
And this is what the future is for a quota.
As a remainder a reminder, Dakota deposit has this tomato mineral reserve on a 100% basis of $7 6 million ounces.
These reserves are constrained by permanent currently tailings capacity.
Martin Salinas: And form the basis of the current economics of the project.
But on a measured and indicated resource basis Dakota. Pip is currently estimated at a total of $12 1 million ounces.
The adjacent Goslin Beth has an additional $4 4 million ounces of misery indicated resources.
And nearly 3 million ounces of inferred so bringing the project to a total of $16 5 million ounces of measured indicated and an additional 4 million ounces suffering for BC.
The size of Coty, and goslin together floods the project in a very exclusive category among the large scales producing Canadian assets.
We are continuing to advance our understanding of that and the impact of gas lift and potential of the program.
At year end 2023, we updated the goslin mineral reserve and resource estimate with an additional 35000 meters of drilling which was drilled over the two years prior.
This year itself, we are conducting for 35000 meters of drift program Targetting, the central zone between the pit shelf, where we see indication of concentrations of many organizations and hydro terminal breakfast as well as some deeper holes to understand the contingency of mineralization below the current picture.
Martin Salinas: We expect to have the resolve of this program later in the year, which will greatly inform our understanding of how to incorporate goslin into a potential future months.
But as I said before Cologuard today, the project, but we believe strongly that D. C start perfect mining can and will provide a strong foundation for aimco for many years to come.
Well. Thank you all and I look forward to an exciting year ahead with that I would like to pass the call back to the operator for the Q&A.
Operator.
Martin Salinas: Yeah.
Speaker Change: Thank you.
Did you end the question queue. You May Press Star then one on your telephone keypad, you'll hear tone acknowledging your request.
We are using a speakerphone. Please pick up your handset before pressing any key does Italia question. Please press Star then two.
First question comes from Anita Soni with CIBC World markets. Please go ahead.
Hi, good morning, everyone.
Firstly on <unk>, you mentioned that the grades declining to life of mine.
How did that decline look over the course of the year.
Yeah. If you look at thanks, Anita for your questions.
If you look at the other 43, one on which reflects that while the first year 2020 for their clients. So we are originally estimated the granting of about one point and one of course in our Q1 week, we massively aided Vietnam other phase five.
The reason why we're saying, we see a potentially <expletive> raising remember as well back in 2023 as we answered entered the phase five. So we also have like some some mega Sir.
Conciliation that the start eventually went on pause now so same behavior aerospace for so we will be entering a phase six and seven as we had been sitting a year.
So.
Speaker Change: There was no reason at the time this time to believe that we will not return to the more but we will obviously benefit for Q1, the apps and as we said so.
So far in Q2, we've seen the same behavior.
Baseline, but eventually they will have to transition to six and seven.
And then also a good turnaround at Westwood Oscar.
Speaker Change: After some challenges at the last decade, and moving to co pay and can I ask I was wondering what is your mill utilization rate like what are they right now and obviously, we're trying to get to 60%.
Throughput for the commercial connection in Q3, but I just wanted to get an idea.
Okay.
How many days on days off right. The plant operating like daily consistently and then it's just a matter of smoke guard stopped or they are being shut down.
Speaker Change: Okay.
Speaker Change: Yeah.
Thanks for thanks for your questions and will now were not discussing on a week by week basis, but we definitely remain but as we said it's not about it's not about the throughput I think we're already extremely well position. We just came out of our five days.
A five day shutdown, where we had the opportunity to improve some aspect that we've seen with no that'd be our is appraise. It so we'd needed some adjustment around shoes. So no elbows lining in stock. So this is done so we feel now that our firm, let's call, where we are now too.
To the Q3, we'll move this up over the 6% to 8%.
Average that so so so it's tough to say, where we are now because we've been systematic and disciplined enough to correct as we go so when we see some.
Bottleneck, so we removed and we go so we don't really judge what we're very comfortable that our son.
Speaker Change: From now to up to as we exit Q2. After Q3 that will be we'll be achieving this objective.
Okay, and both I think are 100% of the flotation tanks are working now I remember like I think like six nine months is correct.
Okay Alright.
This is Jeff Rosenthal was achieved with that at the first half of the surfactant pulse Paul first of all we are rigs.
Speaker Change: We start at the second.
Okay, Alright, and then as these questions are for Martin.
And the Capex number I am a little confused on I think the you know what if you look on the financial statements. It is around $115 million to $53 million.
You just mentioned that Cotai alone with about $151 million. So is this still the cumulative financing coming through or like what's the differential there.
Speaker Change: Okay.
And he talked to this we of course, we do like our partnership deal with Sumitomo, but it does make the accounting a little bit complicated.
Speaker Change: Full of a ice raids.
For <unk>, we asked here it is.
Speaker Change: Everything on our balance sheet at savings per se.
Speaker Change: So that means the additions that you see in the financial statements is stated at 70% as well.
So what we try to do to help with that is if you look at our our statement that notes.
The gain provide a breakdown of the capital in there that excludes the right of use assets.
As well as the borrowing cost on day seven.
So we show up the total for the company of 188 million and gain in our non-GAAP reconciliation at the back of the MD&A.
Speaker Change: Can you take that 188 million converted to 60% will go to that show the coach a number there.
So hopefully that's helpful. But we are of course are more than happy to Jonathan a call with you to go through the details.
Okay, we'll take you up on that you might need to clear an hour and then secondly, that's the.
So on that all the colors and Dan.
The hedges or the prepay and how that's working and so I.
I think I can take more than this call to answer the question, but I.
I guess I was look.
Speaker Change: At it all of it coming through in <unk>.
Like where does some of that come through in the interests and non financial interest and derivative instruments and some of that come through in the.
Speaker Change: And the revenue line is that how it works.
So.
Full revenue on the adult <unk> patients.
We still have to deliver 75000 ounces.
This year in.
Two the colors structure a.
Those ounces the revenue will basically be re kick my <expletive>.
When you are part of it is the gold price remains above two anyone how good because we hit the top of that color.
And then for the.
The ounces this year that we ask to deliver on the.
Speaker Change:
If the fixed right, which would be about 12000 ounces that would be recognized at a price of 1753.
Then for next year in Q1.
We deliver another 75000 ounces over Q1 and Q2.
31000 ounces that we will gate revenue of 2135, that's where the fixed portion in Q1.
And then in Q2 the site 31000 ounces, we will participate between 'twenty 129, 25, if the gold prices in between those ranges, we will effectively recognize revenue at spot.
So maybe this is also another one for us to go through in details, but it comes down to the to what's on the callers revenues recognized at spot.
And for the fixed with afford ones are.
We would be recognizing revenue at the forward rates.
Speaker Change: Thanks, and I definitely want to talk to you offline.
That's it for my questions.
Thank you.
Speaker Change: Okay.
Speaker Change: The next question comes from Mike Parkin with National Bank. Please go ahead.
Mike Parkin: Alright, guys. Congrats on the strong quarter nice to hear everything at Coty is going well.
Following up on your earlier comments around getting money.
Routine SaaS or can you give us.
The sense of the cash reported how much of that is.
In country versus in your accounts.
I assume in Canada.
Speaker Change: Thanks, and first of all Mike a nice to have you back. So Martin can you can you answer that.
So in our disclosures if we if you break our cash balance between Sicad coach Inc. Corporate cash balance for Sicad, which was $99 million.
We're around 100 million for Q1 that is all in the PFS.
Okay.
Speaker Change: And thanks for now it's good to be back Thats. It for me.
Speaker Change: Thanks.
Once again, if you have a question. Please press Star then one the next question comes from Finance to cross connect with Scotiabank. Please go ahead.
Good morning, everyone and thank you so much for taking.
Congrats on a good operating quarter in that Hurricanes on track.
Finance: Couple of questions I have I'm going to start with.
Understanding I mean that realized gold price Martin with amazing given the fact that the paint.
And that looks like in real life 2091 without the prepay.
Finance: I mean I have to believe it was just like you know 20 Bucks an ounce higher than our quarterly average Joe the way he's soldiering through the corner or was there anything else I should be aware of.
Theres nothing else.
You need to be aware of we try to to sell our gold equally over the.
Months every month, it doesn't get delivered and ship equally but we've got some sales strategy to drive to hit the peaks, but no doubt instruments or anything just trying to.
Sal meet the market and sometimes reluctant.
Yeah right.
It's just the first company I saw that I cover that had such sorry about that.
Technical price different take hold.
Speaker Change: Second question I have is just following up on them.
Some questions on the <unk>.
Yes, so wanted to confirm that looks like Westwood is evenly distributed during the year.
Speaker Change: Okay. Let me Q1, Q2 stronger I'm nowhere with the grade in Q3, Q4 would that be a safe assumption to model.
Definitely for the Westwood and because we phase five has been.
Behaving the way it is and it's kind of continuing to do I would also agree with your assessment are originally of course it was more some sort of a flat type of same H one H two I suck at it but we're very pleased with the positive reconciliation. So you could assume a higher stronger H Mart.
Over age to as you said.
So that's very helpful. Thank you and then if I can move all of their car hotel and.
And just to finish out some of them either questions on that.
You know.
Can you give us an idea of how April and May have gone like and some of that thinking.
So much more on the processing side, you mentioned that the you know recoveries will be 1%, we have the gravity circuit coming in in Q2.
So that shaking a movie ever Kathleen So can you just walk me through how April.
So that's why you see the pathway moving act once we got the gravity circuit.
I guess I I.
Speaker Change: What I can say on that I really like the approach of the team is just kind of understanding. The next milestones ahead of time, so when we entered the the.
The pre commissioning.
We obviously are positioning ourselves to be able to do this like in a relatively short so all dip credit behind so about the same thing in a in.
In April and May so yeah.
Yes, it was about stabilization, but he was also to understand that the very early stage. If the capacity was installed was there and so I think April may was really about understanding a few bottlenecks, which.
We've done a lot of corrections in the last shut down but he was really at the very early stage to understands that the next milestones of the 90% nameplate was achievable so weak there.
That was largely the focus off April and May. So now we know that it's about now to ramp up the availability and the instability.
Until we reach the commercial but that's what I could say has been the focus and the progress made at the same time off by ramping up and improving the of the mining operation.
Which is now basically very close to the.
To the to the plants you know us.
Sustaining a full capacity mill.
Okay, and so so that mining is now ramping up with the amount that you're paying are already back.
That's right halfway once a doctor that they are today.
Speaker Change: The gravity.
81% I think what you have right now.
Yeah, Bruno yes, Hello, Daniela so so far we're seeing like very good results in terms of recovery. Despite the DWP circuit is not fully commissioned yet.
Thats a right away.
Target if not above.
Again be careful because we're sort of ramping up <unk> is greater than when we're going to be processing or towards the hosting but so far we're pretty pleased with what we're seeing.
Okay. So what should I be thinking about when you go commercial desperate cavalry.
So that planning one.
Sorry about 81.
91.
Oh 91 site.
Speaker Change: Okay.
Thank you and then maybe I'll, let him my opinion that and my final question Sir.
A reminder, when I looked at the.
Or.
But when I look at Europe already.
And everything else are positive currently.
And that in terms of buying back your option back.
Tom now would it be Patrick Sam that I'm looking at current spot prices.
Everything goes well that that would be achievable in the first half of 'twenty five is that what you have in your model.
So there's a there's a lot of <unk>.
Different factors that of course.
Coming to that to decide that we can generate.
Our free cash flow to buy back in the first half of 2025.
Going through all the inputs and outputs and risk is hard to say with 100% confidence but for us we.
We continue to see that the value of what we are buying them for the underlying assay to make sense for us to buy it back in and we continue to look at all the options.
That's available to us to real asset value.
Oh, okay well.
Alright.
I assume you have a model that when shell.
If you assume you know everything goes well there is a timeline and I understanding.
Come and go in with Makena Faisel money in country.
You can access it would it be fair to have it in first half or should I be thinking later in the year.
You're talking about later in the year 2025.
Tell me if I'm if I, yeah, I mean, there's there's two ways to look at it of course I mean, it depends on gold price you are using and so forth.
We'll see.
How we go.
Yeah, Yeah I mean.
Speaker Change: Yeah.
I guess, if you assume if you assume that's yes seven.
Point in time to cash of the company will be sufficient and of course to prepaid. Its it's just a matter of timeline army.
Yes.
Yeah.
Okay. Thank you.
Thanks.
This concludes the question and answer session I would like to turn the conference back over to Graeme Jennings for any closing remarks.
Graeme Jennings: Please go ahead.
Graeme Jennings: Thank you very much operator, and thank you everyone for joining us this morning as always if you have any.
Further questions. Please reach out manure and myself. Thank you.
Be safe and have a great day.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
[music].
Yeah.
[music].
Graeme Jennings: Yeah.
Graeme Jennings: Hum.
Graeme Jennings: Okay.
Mhm.
Graeme Jennings: Hum.