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 see.

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 Topler 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 the information to access the webcast and our news release related 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.

Alex Hunchak: And are also available on our website.

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.

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 Ron.

Ron: As indicated.

Speaker Change: 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.

Speaker Change: Please see our press release for information about the comparable GAAP measures.

Rodney P. Antal: Right. Thanks, Alex.

Alex Hunchak: Rod Antal executive Chairman will lead todays call.

Ron: Members of our executive team, including Micro Sparks, Chief Financial Officer, Eddie for Reed, Chief Strategy Officer, and Bill Mcnevin EVP operations sustainability are also present on the call I.

Rodney P. Antal: I will now turn the line over to Raj.

Rodney P. Antal: Great. Thanks, Alex.

Rodney P. Antal: I'm going to speak first about Chirplive and provide all our stakeholders with an update on both our immediate priorities and on our path forward in Turkey. I will then provide an update on our ongoing operations in the Americas. The current priorities for Chirplow 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 chipotle.

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 three months.

Rodney P. Antal: Alex.

Rodney P. Antal: Two the containment efforts.

Rodney P. Antal: Three the remediation plan and.

Rodney P. Antal: 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 Cibrelli Valley.

Rodney P. Antal: 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 tripwire 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: Well recovery activities are currently focused in a severely valley.

Rodney P. Antal: To date, the $6 7 million tons of heap Leach material has been relocated as part of the ongoing recovery.

Rodney P. Antal: Containment and remediation activities, including the removal of $4 2 million tons from the severely valley.

Rodney P. Antal: Second the containment efforts.

Rodney P. Antal: 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 Suburley 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 cofferdam 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 the 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 side. So it's 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 restart.

Rodney P. Antal: 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 GOR.

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 remains well on track for the full year production and cost guidance.

Rodney P. Antal: As a reminder, <unk> 2020 full production profile revised 70% weighted to the second half of the year.

Rodney P. Antal: While <unk> production is 55% weighted to us too.

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 upstream operations will deliver solid asset-free cash flow. On the development side, while the planned activities for 2024 at Hob Madden have been reduced, we have continued to advance engineering and project execution planning and the technical studies. We will provide additional updates at a later date.

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: Who will provide additional updates at a later date.

Rodney P. Antal: We're moving on to slide six 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. However, pre-cash flow was a negative $9 million.

Speaker Change: So moving on to slide six and a brief look at the financial results.

Rodney P. Antal: We recorded an attributable net loss of $1 42 per share in the first quarter, reflecting the financial impacts of the cheerfully 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 Turpler incident. As I mentioned, our first quarter of financial results was significantly impacted by the Cherbler incident. We recorded charges totaling $288 million, including costs incurred to date plus future remediation costs and legal contingencies.

Rodney P. Antal: As noted at total cash position is $467 million with an.

Rodney P. Antal: <unk>.

Rodney P. Antal: Undrawn 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 <unk> incident.

Rodney P. Antal: As I mentioned, our first quarter financial results were significantly impacted by the chair of the incident.

Rodney P. Antal: We recorded charges totaling $288 million, including cost incurred to date, plus future remediation costs and legal contingencies.

Rodney P. Antal: This reclamation and remediation work will include the construction of the e-storage facility, displaced heap leach material movement, and He pleads PADRA mediation in all containment infrastructure. In addition, we're recording a payment of $76 million 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 Go on to slide nine.

Rodney P. Antal: These reclamation and remediation work will include the construction if the storage facility displace heap leach material movement.

Rodney P. Antal: <unk> <unk> aviation and oil containment infrastructure.

Rodney P. Antal: In addition, we recorded an impairment of $76 million.

Rodney P. Antal: For all of 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 <unk> pad facility will be totally closed.

Speaker Change: I wanted to slide nine.

Rodney P. Antal: Discussion on the Operating Results Meeting with Mary Gold, Marigold's first quarter production of 35,000 ounces was in line with our expectations. However, 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 oil and sustaining costs are expected to be above 4-year guidance as a result of the deferral of the capital spend from Quarter 1. Marigold remains well on track for its full-year production and cost-cutting. Moving on to CB on slide number 10.

Rodney P. Antal: A discussion on the operating results, beating with Marigold.

Rodney P. Antal: Very cold first quarter production of 35000 ounces was in line with our expectations.

Rodney P. Antal: The 2020 full mine plan call for the first quarter to feature the lowest quarterly stacked oil grades, reflecting the focus on waste stripping at red Dot in the first half of this year.

Rodney P. Antal: Despite this the all in sustaining costs of $1430 per ounce were better than expected largely due to the timing of the capital spend.

Rodney P. Antal: Quarter, two all in sustaining costs are expected to be above full year guidance as a result of the deferral of.

Rodney P. Antal: 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: At CB, 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. SIPI remains on track for its full year. Production and Cost Coordinate

Rodney P. Antal: Moving onto <unk> on slide number 10.

Rodney P. Antal: At Seabee first quarter production was 24000 ounces at an all in sustaining costs of $1416 per ounce.

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....produced 1.9 million ounces of silver in the first quarter. Although slightly lower than expected due to a significant rainfall that impacted the mining rate, Spice remains well on track for four year production guidance of 8.75 to 9.5 million ounces of silver at an all-in 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 advancement 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 better delineate this opportunity.

Rodney P. Antal: Finally, let's move on to tuner on slide 11.

Rodney P. Antal: Sooner 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.

Rodney P. Antal: Pedro 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 million to $6 million 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 Cordaderas 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, CB, 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 potential extensions of Chinh Chu and the continued advancement of the quarter Darius target through <unk> 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 has been supported by the strong operating results of Marigold, Seabee, and Puna 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 are certain topics around legal matters and ongoing investigations that I cannot comment on at this time.

Speaker Change: 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 Joan.

Operator: Quest.

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 obeys 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 Dave just a couple of questions from me.

Ovais Habib: Just regarding the remediation costs at corporate or Oh, 250 to 300 million.

Ovais Habib: Does this amount include any sort of maintenance cost throughout.

Ovais Habib: The two to three years, that's going to take you to complete the remediation.

Rodney P. Antal: No, it doesn't Ovais. It takes into account the construction of the e-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.

Rodney P. Antal: It takes into account the.

Rodney P. Antal: Construction of the storage facility.

Rodney P. Antal: 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.

Rodney P. Antal: So I think if you allow for those per quarter.

Rodney P. Antal: Going forward and 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 biomarker department. 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, you know, 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.

Rodney P. Antal: 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: The.

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 permit radio stated and some other things as well.

Speaker Change: I'm sorry.

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: 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.

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 I'll.

Speaker Change: Ill jump back into the queue and that some other guys that come in but thanks for taking my questions.

Speaker Change: 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?

Michael Parkin: Thanks, guys first on Seabee.

Mike Parkin: Historically, you've always had a big working capital outflow in the first quarter with the inventory build at Seabee Ice road.

Mike Parkin: But I couldn't find any mention of that.

Mike Parkin: In the 10-Q is that something that.

Mike Parkin: It has happened that you get everything the site that youre, hoping for.

Rodney P. Antal: Firstly, Mike, welcome back. Thank you. I hope you're doing well.

Speaker Change: Firstly, Bob welcome back.

Speaker Change: Thank you hope you're doing well.

Speaker Change: We actually had a very successful.

Rodney P. Antal: 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 of that working capital.

Rodney P. Antal: Winter program this year on the <unk> right.

Rodney P. Antal: Probably our payout based swapped for a trip for many years.

Rodney P. Antal: So we didn't have 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: You can see in that working capital.

Speaker Change: Okay. That's good.

Rodney P. Antal: And then.

Mike Parkin: Okay, that's good, and then on Shurpler. 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 like 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?

Speaker Change: I'm sure. There are like can you give us I know you can't.

Mike Parkin: 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 inquiries Dubai.

Mike Parkin: Oh, you know what Ministry, if it's administered flavor of 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, again, Mike, I think you'd appreciate, 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 Chirplin, 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 ground for And so those conversations have been going on since day one, discussing everything, as I've mentioned, Ovais's 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, etc, etc. So all that dialogue has been ongoing at the various ministry levels, at all levels within those ministries, and that will continue.

Speaker Change: Yes look again.

Rodney P. Antal: I think you'd appreciate I cannot comment specifically on.

Rodney P. Antal: The ongoing investigations and the legal proceedings, but.

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: Yeah on the ground, we have I think we mentioned last quarter.

Mike Parkin: When the incident happened, we have many government stakeholders actually at Chipotle.

Mike Parkin: Some of the various different ministries.

Mike Parkin: That we would normally interacting.

Mike Parkin: Mining normal mining activities as well as other other ministries.

Mike Parkin: Had it been of great assistance on the ground for us.

Mike Parkin: And so those conversations have been going on since day one.

Mike Parkin: And discussing everything as I've mentioned.

Mike Parkin: Our values has questions you already have the remediation efforts around how we're going to look at the long term storage solutions for.

Mike Parkin: The display heap leach material.

Mike Parkin: How we.

Mike Parkin: Remedy the heap Leach pad.

Mike Parkin: Clothes that as well et cetera et cetera. So all that dialogue is ongoing at the various ministry levels.

Mike Parkin: With at.

Mike Parkin: At all at all levels within those industries and that will continue.

Mike Parkin: Okay.

Mike Parkin: And then just.

Mike Parkin: Just one follow up on the remediation work that you are estimating cost $250 million to $300 million.

Mike Parkin: Is that are those plans like concrete and approved 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.

Rodney P. Antal: 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: 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.

Mike Parkin: Barrick regularly commenting.

Mike Parkin: Extremely tight labor market in Nevada.

Mike Parkin: But then others that we talked to you know.

Mike Parkin: It doesn't seem to be as bad.

Mike Parkin: 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.

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.

Rodney P. Antal: Yes.

Bill: And then Mike.

William MacNevin: We do a lot of work with their workforce.

William MacNevin: 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.

Michael Parkin: Yeah, and if anything we're doing a lot of work to improve off of that side.

William MacNevin: No real impact to the business and when I look at.

William MacNevin: Let me John reducing it even further.

Mike Parkin: Great. Thanks very much, Rod. Thanks. It's good to be back.

Michael Parkin: Great. Thanks, very much rod thanks, it's good to be back.

Rodney P. Antal: It's good. Thanks, Mark.

Rodney P. Antal: It could

Speaker Change: Thanks Mark.

Kerry McCrory: The next question comes from Kerry McCrory with Canaccord Genuity. Please go ahead.

Speaker Change: The next question comes from Carey <unk> with Canaccord Genuity. Please go ahead.

Kerry McCrory: Hi, 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?

Carey MacRury: Hi, Good afternoon, guys I'm just wondering.

Carey MacRury: If you are able to restart the plant stockpiles only do you have a sense of what the you know the cap.

Carey MacRury: <unk> cost of that would be.

Rodney P. Antal: Look Kerry, that detail will come down the track once we have clarity about the pathways, data, etc., etc. We'll reset those planning efforts around that, but it's just too early to talk about those things.

Speaker Change: That data will come.

Rodney P. Antal: Down down the track.

Rodney P. Antal: Once we once we have clarity about the pathways types.

Rodney P. Antal: Et cetera, et cetera will reset those.

Rodney P. Antal: Thats planning efforts around that but it's just too early to talk about those things just yet.

Kerry McCrory: Turnoff, and just on the convertible debt on which the investors have the right to redeem potentially in 2026 or have the company repurchase it? 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.

Kerry McCrory: Investors have the right to redeem potentially in 2026.

Kerry McCrory: 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>.

Eddie Farid: Not at this stage.

Eddie: Not at this stage.

Eddie Farid: Any detail around that, or not really? Oh, look, if you go through

Eddie Farid: So any detail around that or not really.

Eddie Farid: 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... VerbalNotes.

Eddie Farid: Hello.

Speaker Change: Through if you go through the contracts of the convertible notes at this stage there is nothing around the incident.

Eddie Farid: That gives us concern regarding the.

Eddie Farid: The 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.

Eddie Farid: 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 in Chornobyl.

Antal: 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.

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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