Q1 2024 SSR Mining Inc Earnings Call
Operator: Hello everyone and welcome to SSR Mining's first quarter 2024 financial results conference call. Please be advised that this call is being recorded. Should anyone need assistance during the conference call, they may signal an operator by pressing star then zero. At this time, I would like, for opening remarks, to turn the call over to Alex Hunchak from SSR Mining. Please go ahead.
Hello, everyone and welcome to SSR Mining's first quarter 'twenty 'twenty four financial results Conference call. Please be advised that this call is being recorded should anyone need assistance during the conference call. They may signal, an operator by pressing Star then zero.
Alex Hunchak: At this time I would like to.
Alex Hunchak: For opening remarks, I would like to turn the call over to Alex on check from SSR mining. Please go ahead.
Alex Hunchak: Thank you, Operator, and hello, everyone. Thank you for joining today's conference call, during which we'll provide an update on the Choplar incident, as well as a brief review of our first quarter financial results. Our consolidated financial statements have been presented in accordance with U.S. GAAP. These financial statements have been filed on EDGAR, CDAR, the ASX, and are also available on our website. To accompany our call, there is an online webcast, and you will find information on how to access the webcast and our news release relating to this call.
Alex Hunchak: Thank you operator, and Hello, everyone. Thank you for joining today's conference call during which we'll provide an update on the tubular incident as well as a brief review of our first quarter financial results.
Alex Hunchak: Our consolidated financial statements had been presented in accordance with U S. GAAP.
Alex Hunchak: These financial statements have been filed on Edgar and SEDAR. The ASX and are also available on our web site.
Alex Hunchak: To accompany our call there is an online webcast and you'll find the information to access the webcast in our news release relating to this call. Please note that all figures discussed during the call are in U S dollars unless otherwise indicated.
Alex Hunchak: Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated. Today's discussion will include four forward-looking statements, so please read the disclosures and the relevant documents. Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides. Please see our press release for information about the Comparable Gap Measure. Rod Antal, Executive Chairman, will lead today's call, and members of our executive team, including Michael Sparks, Chief Financial Officer, Eddie Farid, Chief Strategy Officer, and Bill MacNevin, EVP Operations Sustainability, are also present on the call. I will now turn the line over to Rod.
Alex Hunchak: Today's discussion will include forward looking statements. So please read the disclosures in the relevant documents.
Alex Hunchak: Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides.
Alex Hunchak: Please see our press release for information about the comparable GAAP measures.
Alex Hunchak: Rod Antal executive Chairman will lead todays call.
Alex Hunchak: Members of our executive team, including micro Sparks Chief Financial Officer.
Speaker Change: Eddie for Reed, Chief strategy Officer, and Bill Mcnevin EVP operations sustainability are also present on the call.
Rodney P. Antal: I will now turn the line over to Rod.
Rodney P. Antal: Great. Thanks, Alex.
Rodney P. Antal: Thanks, Alex. I'm going to speak first about Chirplot and provide all our stakeholders with an update on both our immediate priorities and our path forward in Turkey. I will then provide an update on our ongoing operations in the Americas. The current priorities per chair block can be distilled into four clear categories. One, the recovery efforts for our five remaining colleagues, to the containment effort. Three, the remediation plan, and four, planning for next steps. But first, with respect to the recovery effort.
Rodney P. Antal: I'm going to speak first about plug.
Rodney P. Antal: And provide all of our stakeholders with an update on both our immediate priorities and on our path forward and take care.
Rodney P. Antal: I will then provide an update on our ongoing operations in the Americas.
Rodney P. Antal: The counter priorities picture block can be distilled into full clea categories.
Rodney P. Antal: One the recovery efforts for our five colleagues.
Rodney P. Antal: Colleagues.
Rodney P. Antal: Two the containment efforts.
Rodney P. Antal: Three the remediation plan.
Rodney P. Antal: And for planning for next steps.
Rodney P. Antal: But first with respect to the recovery efforts.
Rodney P. Antal: I would like to start by offering our sincere condolences to the families of our missing colleagues as well as the community members who are impacted by the Chirpler incident. The primary focus at Chirpler has been and continues to be the return of the remaining missing colleagues to their families. Our teams, in consultation with the relevant Turkish authorities, have been diligently working on finding the missing individuals and will continue to do so. All recovery activities are currently focused in the Sibirli Valley. To date, over 6.7 million tonnes of heap leach material have been relocated as part of the ongoing recovery, containment, and remediation activities, including the removal of 4.2 million tonnes from the Sibirli Valley.
Speaker Change: I would like to start by offering ARCC condolences to the families that are missing colleagues as well as the community members, who are impacted by the chip or incident.
Rodney P. Antal: The primary focus at Shutterfly has and continues to be the return if the remaining missing colleagues to their families.
Rodney P. Antal: Our teams in consultation with the relevant Turkish authorities have been diligently working on finding the missing individuals and we'll continue to do so.
Rodney P. Antal: While recovery activities are currently focused in disability valor.
Rodney P. Antal: To date over $6 7 million tons of heap Leach material has been relocated as part of the ongoing recovery.
Rodney P. Antal: Containment and remediation activity, including the removal of $4 2 million tons from the severely valley.
Rodney P. Antal: Second the containment efforts.
Rodney P. Antal: [inaudible] Since the incident, our containment efforts have advanced alongside the removal of displaced materials. This work includes activities such as the installation of a grout curtain. Copper Dam and Bartras, which are substantially complete. There is also the ongoing installation of pumping systems and diversion channels. We currently expect the removal of all the displaced heap leach material from the Siberli Valley and into temporary storage locations to be completed in the third quarter of 2024.
Rodney P. Antal: Since the incident containment efforts of advance alongside the removal of the two supplies material.
Rodney P. Antal: This work includes activities such as the installation of a graph curtain coffer dam and buttress, which are substantially complete.
Rodney P. Antal: There is also the ongoing installation of pumping systems and diversion channels.
Rodney P. Antal: We currently expect a removal of OLED supply safe place material from a severely valet and into a temporary storage locations to be completed in the third quarter of 2024.
Rodney P. Antal: Third.
Rodney P. Antal: [inaudible] Permanent Remediation Planning While our teams on the ground have advanced the recovery and containment work, we have also worked with the Turkish government, independent experts, and external consultants to develop a remediation plan. This plan includes, among other things, permanent closure of the heap leach pad and construction of a long-term storage facility for the displaced heap leach material. This facility will be designed to permanently store the approximately 18 to 20 million tons of displaced material.
Rodney P. Antal: The permanent remediation planning.
Rodney P. Antal: While our teams on the ground have advanced the recovery and containment work. We've also worked with the Turkish government independent experts and external consultants to develop a remediation plan.
Rodney P. Antal: This plan includes among other things permanent closure is the heap leach pad and construction of a long term storage facility for the display safely to material.
Rodney P. Antal: This facility will be designed to permanently store the approximately 18 to 20 million tonnes displace material.
Rodney P. Antal: The future remediation work is expected to cost between $250 to $300 million on a 100% basis. This is in addition to the approximately $25 million already spent since the incident in February. We expect work to be completed over a two to three year period, with the company's total cash position at $467 million at the end of the first quarter. With cash flow from our three ongoing operations and no balance outstanding on our evolving credit facility, we are well positioned to fund this remediation work in the future. And this transitions us to the initial plans for the next step. In order to restart the operations, the company will require the reinstatement of the previously suspended Environmental Impact Assessment and Operating Permit.
Rodney P. Antal: The future remediation work is expected to cost between $250 million to $300 million or 100% basis.
Rodney P. Antal: This is in addition to the approximately $25 million already spent since the incident in February.
Rodney P. Antal: We expect work to be completed over two to three year period.
Rodney P. Antal: With the company's total cash position of $467 million at the end of the first quarter cash.
Rodney P. Antal: Cash flow from our three ongoing operations and no balance outstanding on our revolving credit facility, we are well positioned to fund this remediation work in the future.
Rodney P. Antal: And these transitions us to the initial plans for the next steps.
Rodney P. Antal: In order to restart the operations the company will require the reinstatement of the previously suspended environmental impact assessment and operating permits.
Rodney P. Antal: At this time, it remains too early to provide guidance on if and when the mine will restart. But for future planning purposes, we anticipate the sulphide plant will initially process more than 700,000 ounces of gold from the sulphide stockpiles while remediation work is completed. Now let's move on to slide five and discuss the 2024 operating. First quarter 2024 production was 102,000 gold equivalent ounces at an all-in sustaining cost of $1,569 per ounce, including 80,000 gold equivalent ounces from Marigold, CB, and Puna.
Rodney P. Antal: At this time it remains too early to provide guidance of if and when demand will start.
Rodney P. Antal: Our future planning purposes, we anticipate the sulfide plant will initially process to more than 700000 ounces of gold from the sulphide Softballs, while remediation work is completed.
Rodney P. Antal: So now let's move on to slide five and discuss the 2024 operating results.
Rodney P. Antal: First quarter 2020 full production was 102000 gold equivalent ounces at an all in sustaining cost of $1569 per ounce, including 80000.
Rodney P. Antal: Gold equivalent ounces for Marigold, Seabee and Puna.
Rodney P. Antal: The results from these three operations were in line with our expectations for a back half way to production profile, and each asset remains well on track for the full year production and cost guidance. As a reminder, Marigold's 2024 production profile remains 70% weighted to the second half of the year, while Puna's production is 55% weighted to half too. Accordingly, we expect the second quarter to be our highest cost and lowest production period of the year.
Rodney P. Antal: The results from these three operations were in line with our expectations for a back half weighted production profile and HSA revised well on track for the full year production and cost guidance.
Rodney P. Antal: As a reminder, <unk> 2020 full production profile.
Rodney P. Antal: It's 70% weighted to the second half of the year.
Rodney P. Antal: While <unk> production is 55% weighted to half two.
Rodney P. Antal: Accordingly, we expect the second quarter to pay our highest cost and lowest production period of the year.
Rodney P. Antal: However, over 2024, we expect the three operations will deliver solid asset pre-cash flow. On the development side, while the planned activities for 2024 at Hog Madden have been reduced, we have continued to advance engineering and project execution planning and technical studies. We will provide additional updates at a later date. Now, we're moving on to slide 6, and a brief look at the financial results. We recorded an attributable net loss of $1.42 per share in the first quarter, reflecting the financial impacts of the Chirpler incident, which we will discuss shortly. Adjusted net income per share was $0.11, and we generated $25 million in operating cash flow in the quarter. Pre-cash flow was a negative $ nine million dollars.
Rodney P. Antal: However over 2024, we expect the up through operations will deliver solid asset free cash flow.
Rodney P. Antal: On the development side, while the Skype the planned activities for 2024 and <unk> have been reduced we have continued to advance engineering and project execution planning and the technical studies.
Rodney P. Antal: We will provide additional updates at a later date.
Rodney P. Antal: So moving onto slide six and a brief look at the financial results.
Rodney P. Antal: Okay.
Rodney P. Antal: We recorded an attributable net loss of $1 42 per share in the first quarter, reflecting the financial impacts of the Trippler incident, which we will discuss shortly.
Rodney P. Antal: Adjusted net income per share was <unk> 11.
Rodney P. Antal: And we generated $25 million in operating cash flow in the quarter.
Rodney P. Antal: Free cash flow was a negative $9 million.
Rodney P. Antal: As noted, our total cash position is $467 million, with an additional..., and Drawn Revolving Credit Facility available. We continue to have a solid liquidity position to manage remediation costs at Chirpla and reinvestment needs across the business going forward. Moving on to slide 7 and shed some more light on the non-cash and cash impacts of the Cherbler incident. As I mentioned, our first quarter of financial results was significantly impacted by the Cherbler incident.
Rodney P. Antal: As noted at total cash position is $467 million with an additional <unk>.
Rodney P. Antal: I'm drawn revolving credit facility available.
Rodney P. Antal: We continue to have a solid liquidity position to manage remediation cost of chirp luck and reinvestment needs across the business going forward.
Rodney P. Antal: Moving onto slide seven and shed some more color on the non cash and cash impacts of the Jetblue incident.
Rodney P. Antal: As I mentioned, our first quarter financial results were significantly impacted by the chip lower incident.
Rodney P. Antal: We recorded charges totaling $288 million, including costs incurred to date, plus future remediation costs and legal contingencies. The reclamation and remediation work will include the construction of the e-storage facility, displaced heap leach material movement, and He pleads Padre mediation in all containment infrastructure.
Rodney P. Antal: We recorded charges totaling $288 million, including cost incurred to date, plus future remediation costs and legal contingencies.
Rodney P. Antal: These reclamation and remediation work will include the construction, it's a storage facility <unk>.
Rodney P. Antal: Place heap leach material.
Rodney P. Antal: <unk> <unk> aviation and oil containment infrastructure.
Rodney P. Antal: In addition, we're recording a payment of 76 million dollars for all heat fleet..., inventory, which contained an estimated 44,000 ounces of recoverable gold, and an impairment of $38 million for the now obsolete heap leach equipment and infrastructure, given the heat bleach pad facility will be permanently closed. Go on to slide nine, and a discussion of the operating results meeting with Mary Gold. Marigold's first quarter production of 35,000 ounces was in line with our expectations.
Rodney P. Antal: In addition, we recorded an impairment of $76 million for all the heap Leach.
Rodney P. Antal: Inventory, which contained an estimated 44000 ounces of recoverable gold.
Rodney P. Antal: And an impairment of $38 million for the now obsolete heat bleach equipment and infrastructure.
Rodney P. Antal: Given the heap Leach pad facility will be permanently closed.
Speaker Change: I wanted to slide nine.
Rodney P. Antal: And the discussion on the operating results, beating with Marigold.
Rodney P. Antal: <unk> first quarter production of 35000 ounces was in line with our expectations.
Rodney P. Antal: The 2024 mine plan called for the first quarter to feature the lowest quarterly stacked ore grades, reflecting the focus on waste stripping at Red Dot in the first half of this year. Despite this, the all-in sustaining costs of $1,430 per ounce were better than expected, largely due to the timing of the capital... Quarter 2 all-in sustaining costs are expected to be above 4-year guidance as a result of the capital spend from Quarter 1. Berrygold remains well on track for its full year production and cost guidance. Moving on to CB on slide number 10. At C.B.
Rodney P. Antal: The 2020 full mine plan call for the first quarter to feature the lowest quarterly stacked ore grades, reflecting the focus on waste stripping at <unk> in the first half of this year.
Rodney P. Antal: Despite this the all in sustaining cost of $1430 per ounce were better than expected largely due to the timing of the capital spend.
Rodney P. Antal: For the two all in sustaining costs are expected to be above full year guidance as a result of the deferral of the capital spin from quarter one.
Rodney P. Antal: Barry Golf <unk>, well on track for its full year production and cost guidance.
Rodney P. Antal: Moving on to Seabee on slide number 10.
Rodney P. Antal: The first quarter production was 24,000 ounces at an all-in sustaining cost of $1,416 per ounce. Production and costs were slightly better than planned, reflecting the processing of higher-grade material stockpiled in the fourth quarter of 2023. For the remainder of the year, CB expects mine and process grades to average between 5 and 6 grams per tonne. Sibu remains on track for its full year production and cost governance as well.
Rodney P. Antal: At Seabee first quarter production was 24000 ounces at an all in sustaining costs of $1416 per ounce production.
Rodney P. Antal: Production and costs were slightly better than plan, reflecting the processing of higher grade material stockpile in the fourth quarter of 2023.
Rodney P. Antal: The remainder of the year, <unk> expects mined and processed grades to average between five and six grams per tonne.
Rodney P. Antal: <unk> remains on track for its full year.
Rodney P. Antal: Production and cost guidance as well.
Rodney P. Antal: The exploration activities at CB continue to focus on near mine extensions to existing underground mineralisation as well as continued advancements of Porky and the Porky West target. Porky targets represent a potential mine life extension opportunity, and the CB team is aggressively advancing the technical studies to better delineate this opportunity. Finally, let's move on to Puna on slide 11. We produced 1.9 million ounces of silver in the first quarter. Slightly lower than expected due to a significant rainfall that impacted the mining rate, but it remains well on track for four-year production guidance of 8.75 to 9.5 million ounces of silver at an oil and sustaining cost of $14.75 to $16.25 per ounce.
Rodney P. Antal: The exploration activities at Seabee continues to focus on Mnemon extensions to existing underground mineralization as well as continued advancements of <unk> and the <unk> targets.
Rodney P. Antal: The poll key targets represent a potential mine life extension opportunity and the CVV team is aggressively advancing the technical studies to further delineate this opportunity.
Rodney P. Antal: Finally, let's move on to tuner on slide 11.
Rodney P. Antal: We under produced one 9 million ounces of silver in the first quarter slightly lower than expected due to a significant rainfall that impacted the mining rights. Despite these pay.
Rodney P. Antal: <unk> remains well on track for full year production guidance.
Rodney P. Antal: <unk> 75 to $9 5 million ounces of silver at an all in sustaining costs of $14 75 to $16 25 per ounce.
Rodney P. Antal: Exploration and technical work continues to evaluate opportunities to extend operations of Puna through potential extensions of Chinchillas and the continued advancement of the Cordilleras target through nearby drilling. Our team at Chirpler remains focused and steadfast as we continue with the overall recovery effort. This has been supported by the strong operating results of Marigold, Seabee, and Puna, and I want to recognize our team's focus and commitment during a difficult time. Before I open up for questions, I would like to remind you that there are certain topics around legal matters and ongoing investigations that I cannot comment on at this time. So operators, we can open up the call now to any questions people might have.
Rodney P. Antal: Exploration and technical work continues to evaluate opportunities to expand extend operations of tuna through potentially extensions at <unk> and the continued advancement of the quarter Darius target through need via drilling.
Rodney P. Antal: It's a mature book remains focused and steadfast as we continue with the overall recovery efforts.
Rodney P. Antal: This is being supported by the strong operating results of Marigold, Seabee, and Puna are and I want to recognize the team's focus and commitment during a difficult time.
Rodney P. Antal: Before I open up for questions I would like to remind folks there is certain topics around legal matters and ongoing investigations and I cannot comment on at this time.
Speaker Change: So operator, if we can open up the call now to any questions people might have thank you.
Operator: Thank you, Mr. Antal. We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2. The first question comes from Ovais Habib with Scotiabank. Please go ahead.
Speaker Change: Thank you Mr. Joe We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear tone.
Operator: Request.
Ovais Habib: Speakerphone, please pick up your handset before pressing any Keith.
Ovais Habib: Your question. Please press Star then two.
Ovais Habib: The first question comes from Obs Habib Scotiabank. Please go ahead.
Ovais Habib: Hi Rod and the SSR team, just a couple of questions for me. Regarding the remediation costs at Chopler of $250-300 million, does this amount include any sort of care and maintenance costs throughout the 2-3 years that it's going to take you to complete the remediation?
Ovais Habib: Hi, Rod and SSR game, just a couple of questions from me.
Ovais Habib: Just regarding the remediation costs at corporate or Oh $250 million to $300 million does this amount include any sort of maintenance cost throughout.
Ovais Habib: The two to three years Thats going to take you to complete.
Ovais Habib: The remediation.
Rodney P. Antal: No, it doesn't, Ovais. It takes into account the construction of the storage facility, the remediation efforts on the heap leach pad, etc. If you look at the financials, the care and maintenance costs in the first quarter are around $17 million per memory. And so I think if you allow for those per quarter going forward, it would also depend on, obviously, how long that goes on while we're shut down.
Ovais Habib: No it doesn't.
Ovais Habib: It takes into account the.
Ovais Habib: Construction of the storage facility.
Ovais Habib: The remedy I should if it's on the on the heap Leach pad.
Rodney P. Antal: Et cetera.
Rodney P. Antal: If you look at the financials the care of <unk> costs in the first quarter around I think $17 million.
Rodney P. Antal: For memory and <unk>.
Rodney P. Antal: So I think if you allow for those per quarter.
Rodney P. Antal: Going forward I don't think it would also depend on obviously.
Rodney P. Antal: How long that goes for a while was shutdown.
Ovais Habib: Okay, thanks for that, Rod. And just in regards to the environmental permits, will you look to apply for the environmental permits while the remediation is ongoing or once the remediation is complete? Essentially, I mean, is there a possibility that the sulfide plant could start before the remediations are complete?
Speaker Change: Okay. Thanks for that and just in regards to the biomed departments. So when you look to apply for the environmental permits why the remediation is ongoing or once the remediation compete essentially I mean is there a possibility that the sulfide plant could start before the remediation.
Rodney P. Antal: Yeah, like I think Ovais, as I sort of mentioned and we'll keep saying, our efforts and focus have really been on, you know, finding our missing colleagues and the work to define what the remediation efforts will be and getting that, those in consultation with the government authorities approved. We've only really just started to turn our mind to the startup and all the other factors that go with it, which will require us to get that EIA permit reinstated and some other things as well.
Ovais Habib: Our complete.
Rod: Yeah look I think advice is as I sort of mentioned it and we'll keep saying it our efforts and focus is really paying off.
Ovais Habib: Finding obviously and colleagues in the work to define what the remediation efforts will be in getting that.
Rodney P. Antal: Those.
Rodney P. Antal: In consultation with the governmental authorities approved.
Rodney P. Antal: We've only really just started to turn our mind to.
Rodney P. Antal: <unk>.
Rodney P. Antal: Start up and and all the other all the other factors that go with it which will require us to get that AI permit radio stated and some other things as well.
Rodney P. Antal: So it's a little bit early to say exactly what pathway we need and how long it's going to take and all those other questions I know you all have, but that will come over time. Okay, maybe...
Speaker Change: So we are.
Rodney P. Antal: It's a little bit early to say exactly what pathway, we need and how long it's going to take <unk>. There's other questions on how you will you will have but.
Rodney P. Antal: That will that will come over time.
Ovais Habib: Okay, maybe I'll jump back into the queue and let some other guys come in, but thanks for taking my initial question.
Speaker Change: Okay maybe.
Speaker Change: Ill jump back into the queue and that some other guys that come in but thanks for taking my questions.
Ovais Habib: Thanks Ross.
Mike Parkin: The next question comes from Mike Parkin with National Bank. Please go ahead.
Ovais Habib: The next question comes from Mike Parkin with National Bank. Please go ahead.
Mike Parkin: Thanks, guys. First on CB, historically, you've always had a big working capital outflow in the first quarter with the inventory bill that CB on the ice road. I couldn't find any mention of that in the 10-Q. Is that something that has happened? Did you get everything to site that you were hoping for?
Ovais Habib: Yes.
Speaker Change: Thanks, guys first on CB.
Ovais Habib: Historically, you've always had a big working capital outflow in the first quarter with the inventory build at Seabee Ice road.
Mike Parkin: I couldn't find any mention of that.
Mike Parkin: In the 10-Q is that something that.
Mike Parkin: Has happened that you get everything the site that you were hoping for.
Rodney P. Antal: Firstly, Mike, welcome back. We actually had a very successful winter program this year on the ice road, probably our best one for many years. So we didn't have the normal sort of build-ups that we've had before, where we had some delays on the ice roads to get the logistics up and down the road itself. So it was a slightly different outcome this year, a much more efficient, better outcome in terms of that build-up and efficiency in that working capital.
Mike Parkin: Firstly Mark welcome back.
Speaker Change: Thank you that'd be doing well.
Mike Parkin: We actually had a very successful.
Mike Parkin: Winter program this year on the odds right.
Rodney P. Antal: Probably our payout based swap for a trip.
Rodney P. Antal: For many years.
Rodney P. Antal: So we didn't have.
Rodney P. Antal: The normal sort of buildup that we've had before where we've had some delays on the <unk> to get the logistics up and down.
Rodney P. Antal: Up and down the road itself. So it was a slightly different outcome. This year with a much more efficient better outcome in terms of that buildup.
Rodney P. Antal: Our efficiency in that working capital.
Speaker Change: Okay. That's good.
Rodney P. Antal:
Mike Parkin: Okay, that's good, and then on Shurpler, are you, like, can you give us, I know you can't speak on everything, but in terms of who you're dialoguing with, you know, where you are in the process, is there still an investigation being carried out by, I don't even know what ministry it is, if it's like the Ministry of Labor or the Ministry of the Environment. Are those concluded in your awaiting... um, they're ruling on that, or like where are you in the process on that front?
Rodney P. Antal: And then.
Rodney P. Antal: On sharply or are you like can you give us I know you can't speak.
Rodney P. Antal: E on everything but in terms of who your dialogue with.
Mike Parkin: Where you are in the process.
Mike Parkin: Is there still like an investigation and carry to buy.
Mike Parkin: <unk>.
Mike Parkin: I don't even know what minister Ministry of Labor Ministry of environment.
Mike Parkin: Are those concluded and you're waiting.
Mike Parkin: Their ruling on that or like where are you in the process on that front.
Rodney P. Antal: Yeah, look, and again, Mike, I think you'd appreciate it, I can't comment specifically on the ongoing investigations and the legal proceedings, but... On the ground, we have, I think we mentioned it last quarter, when the incident happened, we have many government stakeholders actually at Chirpler from the various different ministries that we would normally interact with on mining, you know, normal mining activities, as well as other ministries that have been a great assistance on the And so those conversations have been going on since day one and discussing everything, as I've mentioned, Ovais' questions, you know, around the remediation efforts, around how we're going to look at the long-term storage solutions for the displaced heap leach material, how we're going to remediate the heap leach pad and close that as well, et cetera, et cetera. So all that dialogue has been ongoing at the various ministry levels, at all levels within those ministries, and that will continue.
Mike Parkin: Yeah look again.
Speaker Change: Mark I think you'd appreciate it.
Mike Parkin: Comment specifically on.
Mike Parkin: The ongoing investigations and.
Rodney P. Antal: The legal proceedings, but.
Rodney P. Antal: Yes on the ground, we have I think we mentioned on last quarter.
Rodney P. Antal: When the incident happened, we have many government stakeholders actually at shift.
Rodney P. Antal: From the various different ministries.
Rodney P. Antal: That we would normally interacting on mining normal mining activities as well as all the other industries that.
Rodney P. Antal: <unk> been a great assistance on the grant for us.
Rodney P. Antal: And so those conversations have been going on since day one.
Rodney P. Antal: And discussing everything as I've mentioned.
Rodney P. Antal: <unk> advises questions Yarrow, rather remediation efforts around how we're going to look at the long term storage solutions for.
Rodney P. Antal: The display heap leach material.
Rodney P. Antal: How we.
Rodney P. Antal: Remedy the heap Leach pad.
Rodney P. Antal: Clothes that as well et cetera et cetera. So all that dialogue is ongoing at the various ministry levels.
Rodney P. Antal: <unk>.
Rodney P. Antal: At all at all levels within those industries and that will continue.
Mike Parkin: And then just one follow-up on the remediation work that you're estimating will cost 250 to 300 million. Is that, are those plans concrete and approved by the government, or is that a work in progress?
Rodney P. Antal: Okay.
Rodney P. Antal: And then.
Rodney P. Antal: Just one follow up on the remediation work that you are estimating will cost $250 million to $300 million.
Mike Parkin: Is that are those plans like concrete and improved by the government or is that a work in progress.
Rodney P. Antal: It's based on the discussions about engineering design that we have done to date. So those estimates are based on a lot of work, a lot of detailed work at this stage. So yes, it's well advanced in terms of engineering.
Mike Parkin: It's based on the discussions in engineering.
Mike Parkin: Design that we have done to date so.
Rodney P. Antal: Those estimates are based on a lot of work a lot of detailed work.
Rodney P. Antal: Sure.
Rodney P. Antal: At this stage, so I guess, it's well advanced in terms of the engineering.
Mike Parkin: And then just over back over the ocean to Marigold. You know, Barrick's regularly commenting on an extremely tight labor market in Nevada. But others that we've talked to know that it doesn't seem to be as bad. What's your experience with Marigold? Are you finding turnover rates are elevated or more in line with historical norms? Or are you benefiting from possibly gaining workers from other sites?
Rodney P. Antal: Okay.
Rodney P. Antal: And then just over back over the ocean to Marigold.
Rodney P. Antal: Barrick regularly commenting.
Mike Parkin: Extremely tight labor market in Nevada.
Mike Parkin: But then others that we talked to you know that it's not.
Mike Parkin: It doesn't seem to be as bad.
Mike Parkin: What's your experience with Marigold are you finding turnover rates are.
Mike Parkin: Elevated or more in line with historical norms or are you benefiting from.
Mike Parkin: Possibly gaining workers from other sites.
Rodney P. Antal: Mike, I'm going to pass that one over to Bill to answer.
Mike Parkin: Mark I'm going to pass that 102 to bill to answer.
William MacNevin: Good afternoon, Mike. We do a lot of work with our workforce, obviously focusing on where we're going as a business but also on the development of the people and their part in that. In terms of turnover in general, we're really just at our historic levels. If anything, we're doing a lot of work to improve on that, so there is no real impact on the business, and we're looking to leverage on reducing it even further.
Mike Parkin: Yes.
Speaker Change: And then Mike.
Mike Parkin: We do a lot of work with their workforce, but.
Bill: I would say focusing on where we got in this business, but also.
William MacNevin: Development of the people on their part in that in terms of the 10 had been general way really just said there was still a historic levels.
William MacNevin: If anything we're doing a lot of work to improve on that side.
William MacNevin: No real impact to the business and we're looking at.
William MacNevin: Let me John reducing it even further.
Mike Parkin: Great. Thanks very much, Rod. Thanks. It's good to be back. They're good.
Mike Parkin: Great. Thanks, very much rod thanks, it's good to be back.
Rodney P. Antal: It's good, thanks Mark.
Mike Parkin: Thanks Mark.
Kerry McCrory: The next question comes from Kerry McCrory with Canaccord Genuity. Please go ahead.
William MacNevin: The next question comes from Carey <unk> with Canaccord Genuity.
Speaker Change: Please go ahead.
Kerry McCrory: Good afternoon, guys. I'm just wondering if you are able to restart the plant with stockpiles only, do you have a sense of what the, you know, the cash costs that would be?
Speaker Change: Hi, Good afternoon, guys I'm just wondering.
Kerry McCrory: If you are able to restart the plant stockpiles only do you have a sense of what the cash cost of that would be.
Rodney P. Antal: That detail will come down the track once we have clarity about the pathways, dates, etc., etc. We'll reset those planning efforts around that, but it's just too early to talk about those things.
Kerry McCrory: The carrier that data will come.
Kerry McCrory: Down the track.
Speaker Change: Once we once we have clarity about the pathways types.
Rodney P. Antal: Et cetera et cetera.
Rodney P. Antal: Those.
Rodney P. Antal: Thats planning efforts around that but it's just too early to talk about those things just yet.
Kerry McCrory: Fair enough. And just on the convertible debt, which investors have the right to redeem potentially in 2026, or have the company repurchase? Is there anything related to the incident in Turkey that could trigger that in 2026? Or is that related to something else?
Speaker Change: Okay fair enough and just on the convertible debts on the.
Rodney P. Antal: Investors have the right to redeem potentially in 2026.
Rodney P. Antal: The repurchase is there anything related to the incident and Turkey that can trigger that gen six or is that related to something else.
Rodney P. Antal: I'm going to pause it when I have it, Eddie. But not at this stage.
Kerry McCrory: On a positive one <unk>.
Speaker Change: Not at this stage.
Rodney P. Antal: Any detail around that, or not really? Oh look, if you go through the contracts of the convertible notes at this stage, there's nothing around the incident that gives us concern regarding the...
Kerry McCrory: Any detail around that or not really.
Eddie: I'll look.
Eddie: Through if you go through the contracts of the convertible notes at this stage there is nothing around the incident.
Rodney P. Antal: It gives us concern regarding the.
Rodney P. Antal: Convertible notes.
Speaker Change: Okay. Thank you.
Operator: This concludes the question and answer session. I would like to turn the conference back over to Mr. Antal.
Entel: This concludes the question and answer session I would like to turn the conference back over to Mr. Entel.
Rodney P. Antal: Thanks, Operator, and again I appreciate everyone joining us today and look forward to continuing with the updates as we move along, particularly at Chornobyl.
Speaker Change: Great. Thanks, operator, and again I appreciate everyone joining us today.
Antal: And look forward to continue with the upsides as we move along particularly in China.
Antal: Good evening to you all.
Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
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Speaker Change: This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Rodney P. Antal: Okay.
Operator: Hum.
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