Q1 2024 Metals Acquisition Ltd Earnings Call
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Hello, and welcome to the metals acquisition first quarter 2024 results conference at this time all parties are in a listen only mode. Later, you will have an opportunity to ask questions to ask a question you May press star and one key on your phone keeps it is star one if you would like to ask a question to have moved here.
From the queue Press Star two please note that this call is being recorded and I will be standing by should you require any just I would now like to turn the call over to CEO Mick Mcmullin. Please begin.
Thank you and thank you everyone for joining I'm I'll be speaking to the presentation slides today, along with more ankle breakdown say apart.
We're going to give an update on our Q1 'twenty 'twenty four our results as well as a bit of an update on the business up until now.
Let's say it's high obviously, we are in he's a very hard right.
Top of mind I'm sitting in a tier one jurisdiction in western yourself Wow.
And as most of the people on the call with now it's been operating for a very long period of time and sorry, each each of sort of a non quantity in terms of infrastructure.
<unk>, great relationships with local stakeholders in a very stable regulatory taxable royalty regime.
Would you Miss that Ige is becoming increasingly rare.
The company has got just under 70 million shares Nishu, we as everyone would not what it looks like on the New York stock exchange as well as the IDEXX.
And the enterprise value is he's near and I'll show that $1.1 billion, we have a very strong rate yourself.
Large institutional backing a not a lot of rates all in the company.
And what did you say aside as a great foundational asset for us.
In terms of a phenomenal raise all sit in the ground.
With a lot of existing infrastructure.
We felt we'd put it in a bit of a scorecard for us to sort of back how we progressed along that journey since acquiring the mall and back in June of last year.
And I think overall, we'd leave it all.
We said, we would do obviously closing the bonds.
Yes.
I'll break them, all and safely and in a fully credible fashion with vantage to deliver on several key permits since we got them all in including the final exam states.
As states lift.
We said, we'd deliver lodge resorts increase we always believe that the mineral resource and reserve have potential for significant expansion as we that call last week, we've we've delivered on that.
We said, we'd de leverage and simplify the balance sheet.
He will stay with more high stocks. The Torquay shortly you can see exactly to the extent that we've done sorry.
We've indicated that we locked to simplify our capital structure and I would say that's a work in progress, but something that is front and center.
Right.
We'd been building at St Ives at a board and management level.
And Oh, sorry, that's a bit of a work in progress as well and.
And you know we have certain steps on the way that we'd like to take you know what it's just sort of.
Further broaden our broad diversification as well as management.
Operational turnaround, we've always said, let's say, it's I you know it.
It was a turnaround story.
Tens of your thing at very small last night and saw it it's crazy its iron ore, which is a very large company and perhaps didn't have the level of focus out of the asset really needed and sorry, Oh I would say, we're part while I'm there in terms of operational turnaround we have a way.
We'd like to be but we see good potential just to say that you're in the asset around.
We said, we'd deliver a you know a meaningful reserve law upright and we'd have to lead with that which you know with an 11 year reserve life based on Dod or up until the end of August.
We clearly we have aspirations to grow the business, but we would be disciplined all of them and I think we've demonstrated that.
And for those of you who can recall from the closing of last year, we had I.
Reasonable size that the pilot Judy clean cool.
Which if we didn't pay it in cash by the middle of 'twenty 'twenty four would have converted to equity inside of having paid that down we've removed that potential dilution.
Okay.
Three quarters. He knew I honestly can all give us a reasonable score in terms of that delivery I don't think a few of those are orange or yellow ticks there.
We have plans in place in order to deliver on my reminder of ours, either the next six to nine to 12 months.
Moving on to the next slide slide six obviously, we'd be crazy lots of Mod and the reserves very significantly and I think again based on the call that we had last week. The fact that the 11 email and loss actually on the guys down knowing he thought made us beyond the bottom of the parents.
<unk> is very important in terms of the requirement for development going forward.
We've had a very large increase in resources.
Again, you know the top 850 made is that the ore body actually in all the net results.
Q1 production was down a bit from where we'd like it to obtain it was a 8700 tons of copper.
And seemingly because of the high fixed cost nature of the operation I'll say, one one off about six nine cents and relative to the fourth quarter.
I would say and I did indicate on their call last week that sequentially, we expect quarters to date better production during the course of the year.
We spent about $30 million of capital, which you gave us sort of exactly.
Where we'd go out and see it before.
And look as everyone knows the copper prices they sustaining crazy, we did achieve slightly higher than the average cross the spot price during the quarter. So again, you know, we're achieving a better price relative to relative to the market.
Balance sheet at the end of the quarter, we had about 100 million years liquidity, sorry, 155 million Australian dollars.
We did pay down 127 million U S dollars of interest bearing liabilities.
We've been very clear that one of the casings from operating cash flow and the ice exalt D. I was to de lever the balance sheet and you know we have some further simplification.
Although we'd like to do there.
And we've also had put out after this sort of guidance for the three years that you know what I'm, indicating that by 2026, we'll be we'll be producing in excess of 50000 tons of copper.
So in terms of production.
Look it was a bit of a weaker quarter relative to the frac water.
And that was a combination of really a couple of two or three things one was we.
We did say a bit hall, a light or turn either in absenteeism, which which impacted the production a little bit.
It was also partly with the planning of the stope, So as we've said before.
The mine would sort of churn I was sick of 70 stocks of yeah.
Half a dozen advised could be could be as much to say that'll be a metal.
And so if you were out of ours. You know then you have a week of production. If you read the EIS is saying two two of those states.
Coming on law it'll have come on larger in Q2, then obviously you get a you get a large increase in metals or we.
We do have a bit of variability or volatility quarter on quarter in terms of production.
The other thing.
You know in Q1 was that we announced we.
At St Ives.
Complete power outage to the mine.
Due to that storm out to the east of Us and and we did lose a bit of a maintenance coming out of that so that was a sort of follow up 600 tonnes of copper.
For the quarter.
C. One really was driven by the volume and so you know we did say a little bit of an increase in say one.
We do expect Q1 for 2024 to be our weakest quarter for the year.
And part of the shake dealing as we were mining at a reasonable portion of all from an east west deposits, which are shallow.
They are quite a bit lower grade.
And so you know we did see that come through in the average grade.
So again as we move out of the east and west deposits into QTS, North Central which is sort of really what the new bond claim.
It is based on.
We expect to see dry start to tick back up again.
Suddenly development made us down that we did a couple of things in the in the corner I. One was that we did a favorite of rehabilitation betas, which are included in the primary development betas.
We we we sort of went back and did a favorite of extra grant support.
Bottle sub onto the new mine plan, because we sort of you know we army need to adopt them about 95 meters below where we currently off that makes the liberties at it does it does mean that we actually need to do a bit less development relative to where we were we had big before.
So again we.
We focus very much on productivity productivity was inline.
In line with the previous quarter, well about where this thing on a year ago.
And suddenly Capex was was.
Exactly as we sort of forecast I'm not in the previous couple of quarters.
We are doing that is to say, it's athletics and in the quarterly report we put some photos there of all of this works.
So as those things roll off during the course of the year, we expect capital spending to drop back down but again. It was it was exactly in line with where we'd go out of the market today.
At this stage, we don't have any gross capex, it's all in sustaining capex.
And so you know it's trending exactly where we said it would take.
I'm going to hand out of it some when I say if all this for the next three slides as he talks about the cost side of the business.
Thanks, Mike good.
Good evening and morning, everyone.
My name is one angle basket I'm the CFO.
Sure.
And I'll take you through the next three sites and also the high level of liquidity pool at the end.
The quota.
Before we get into slide 10, and if you look at through our recently launched its case 1800 report, we shouldn't call. It on the <unk> six as well.
You'll note that in that media reports and they're not good at around two thirds of our real cost of being fixed.
Kosovo from a mining point of view, which impacts to lots of rehab cost per ton and cost base matrix that is presented here are especially.
Volumes are down.
Going to slide 10 and to the list this out licensing cost per ton in U S dollars, which remained pretty steady.
With a slight uptick a of around 2%.
Underlying volumes in both compared to last quarter.
And and due to the high fixed cost nature of our mining cost per tonne.
The same package by signing up money one of them says snake is already kind of at all.
And that's mainly because of all the Saint Pat's hit by the fact that our capital there have been media slowed down by almost 45% compared to last quarter, which just means that less of that sort of fixed cost component, it's capitalized and if I had to be distributed distribute the gravity.
Mining volumes basketball and therefore, it lives in it on a cost per meter.
Going onto slide 11.
You will see that the volume game is critical once again with two G&A costs being fixed is that.
A little room to move when volumes drop off.
The underlying cost that's still high for my liking and we are actively working to reduce the size of all food with tendering context way way possible.
I said it before on the development side, we almost 45% quarter on quarter and our speakers have gone. This is predominantly due to more rehab. It is being completed which is I'm not part of the white calculation and then at Wassa pit of anything pivoting and then you're mining plan, we like going to mine high right.
Alright areas going forward.
I'm on slide 12 mm Yeah, I wanted to take you through a high level of liquidity.
As at the end of box Twenty-twenty full.
As you can see we started off the year with liquidity of around 32 billion U S dollar switching could it be.
The drawdown of our revolving facility of 25 million U S.
We then completed a very successful oversubscribed equity rise it takes which brought us.
Much needed liquidity and around $215 million, so a 325 million Aussie before.
The full cost almost immediately we piloted the first linked cool consideration of around $83 million UA suites, Oh, well, it's one of our highest debt costs on our balance sheet as it carries the same interest that's the mistakes. We said it would be say immediately accretive to earnings.
Alternatively, this a lot, but if he could have been converted to shades, which would have been 90 theaters.
Tying that back as soon as possible.
They seem to do frosty.
We then reduced fed as some additional interest bearing liabilities biomethane revolving facility.
25 million and reducing some of our principal on our senior facility as well around $8 million.
We ended up the quarter with around 100 million now liquidity.
They found that <unk> hundred 55 million Aussie, yes, Nick us outbound as well I think are very important to note that the this liquidity does not include the two shipments are we referred to previously as well in our previous calls of around $48 million, which was shipments around one of the shipments was at the last week.
March and the other one the first week in April.
Yeah, and if you look at that sort of liquidity graph you will see that we carry obviously all the cost in the quarter for those two two shipments.
During the quarter, but theres not revenue or cash to offset that so you will see that coming through in the next quarter.
And that's just based on our times, an off take agreement, which which sort of states that title doesn't transfer until that provisional payment is made it can be around two weeks. After the ship is loaded. So that's just a catch if I a timing issue. There and then also I'm just kind of reading your accrued at the end of March when ice two shipments.
As well.
So just wanted to make that very clear.
All stuff not just subsequent to quarter, we pay them the stamp duty on this on the on the acquisition of CSI copper mine, which is around $24 million.
You'll see coming through the next quarter as well.
And then ask because banks seem to be on looking at ways to strengthen our balance sheet and simplify our capital structure.
Makes it before as well.
And so we're looking at that number of options, they which we can report on that over the next couple of quarters.
With that I'll hand back to me.
Thanks, Mel and I and for those of you who are trying to sort of back calculate I free cash generation during the quarter from operations.
I think the point around that 50 odd million dollars worth of two shipments right at the end of the quarter and dropped into the first second of April.
We have booked all the costs associated with our shipments, but not on the revenue side.
If you are sort of lining up on accruals basis, you would need to put that 50 50 million U S back into the into the revenue line and so you can say even the trade dollars 87 in copper that was an average posture during the quarter.
The the law and is generating.
Strong free cash flow.
Clearly at $4 60 called out that.
The prices are even better.
And each of the shipments should is worth around about $28 million to $29 million of bylaw sorry it.
It does make your cash flow is somewhat lumpy.
But at the end of the di the mine is generating quite.
Strong free cash flow.
And again, just rolling into some of the information we put out the other die.
We think coming out with a with an 11 year reserve life.
Really sort of that gives people confidence that this truly is now a long life asset or all of that is all about ease of router.
That's the only information up until the end of August we continue to drill at some pace.
And so you can say on the graphic you know he truly is a significant increase in the resource and reserve.
I have historically been very successful at maintaining a sort of a certain level of resource and reserve just bought annual production.
You can say how significant the sour diet has been relative to where it's been in the last in the last 10 years.
And we say opportunity subject to exploration success and sort of economic practice. So that would continue doing grace, we have Ron <unk> resources and reserves at a straight all 76 copper price, obviously $4 60 everything becomes economic.
So again, you know sick or a million tons and contained copper at a at a at a fantastic ride a full point at St.
Again everything has always been really we now see the opportunity debate to try and produce these faster than what the current shot.
Montana has is doing.
We did talked the other day about some of the shallow mineralization in the ore body. So again Chi Chi yourself offer or is that little thing on the top left brain.
We do intend to get in and start mining that fairly soon.
But interestingly we thing.
Mining the historical data so to speak.
And have you discovered that there is substantial zinc mineralization in the alpha portion of the mine.
Very proximal to existing infrastructure within 50 to 70 made as of the day, we fallen in most cases.
And I'd feel how had about six day made is a massive sulfide copper zinc rich.
Sitting right at me and he says so roundabout sorry, you haven't made as velocity. So we're very excited about this you know I would not specifically chasing zinc, we still say say as high as that.
As a predominantly copper ore body.
If there's a fairly all body, what we'll take that as well.
Again reserves very significant up riding the reserve status, which which underpins some of the discussions that we've sort of touched on in terms of balance sheet simplification.
One other key building blocks, along with the highest takes at the Io and the large equity rise and then obviously the operations generating strong free cash flow. They they're really betrayed pillars upon which you can sort of you know.
Re plan, our balance sheet in terms of where you'd like to be.
Again guidance, we say God and seen our production gradually ticking up again, we'd like to say if we cannot we can improve on that is that knowledge of the ore bodies that change and we can sort of now focus our development efforts all of them.
Unlocking that bottom of the mall and through additional ventilation, which is really the one of the key changes in the development plan is to not.
I'll have to be driving down his date.
But actually type that has made us an unused summarize all pushing that ventilation.
Because that's really the K in terms of actually unlocking a production.
So just coming back to highlights again little bit Blake a quarter in Q1.
We do expect sequentially the quarters during 2024 to improve.
And our unit cost up slightly again fixed cost base.
But really at $4 60 trough out they're small and clearly with the say why not be met so $2. Two if you stay in the pan level.
Clearly as generating significant operating free cash I mean, the capex of.
Sort of a historically, we've guided the market to around about 50 to 52, but anyway for the year are.
You'd obviously generate some very good free cash.
I think the simplification of the balance sheet is something that we say.
That's pretty critical here going forward.
And obviously generating lots of free cash and tying down interest bearing debt. He's he's brought on the top of that it looks to have things to do.
And so with that I think that's really the summary of our of the opt I am happy to say that either to two questions.
To ask a question press star one on your phone keypad. At this time you may also submit questions via the webcast using the Q&A button at the bottom right up your screen.
Okay.
We will take our first question from Daniel Morgan with bearing Joey.
Hi, Mike and Tim first question, just relates to production and outlook.
Do you expect production to improve sequentially each.
During the year.
If that is the case what are the drivers as you know tons and Brad. Thank you.
Sure Yeah look we expect to see back.
Q2, Q3, I think will be the stronger quarters.
Just based on and it's really just sequencing of stopes.
As I've said, we've got to it is you know big high grade stopes that are coming online or have come online during Q2.
And that will draw out a favorite of production <unk> sorry.
With a bit of luck, we don't have another three day power outage, which which.
Realistically actually not fallen hundred 600 tonnes of copper out of Q1, and I know I guess, all I could look on the broadsword inside what we didnt produce that and sell it at $3 87 a M.
Now we can produce it in Q2 and sell it at $4 six you're probably looking at the broad sort of things.
Sure.
On the financials.
And I think you have got sympathizing, simplifying your debt structure and you're paying down debt.
Wondering why perhaps you're not deciding to pay down more of the senior facility to Pops defray interests, because if you've got a lot of cash.
There.
Is there.
Costs of redrawing on facility for Claude.
Thank you.
Well the senior if we if we are obviously the revolver, we can read pine drawer and we fully repaid back.
The senior principal if we re part it is not redraw bull.
But I think it's a good point.
In that we have all of that I guess, we've paid the debt down in the order of cost of capital that we could.
And perhaps there's other bits of capital in that fact that I have more experience you've been saying is that you know we are working on suite.
To say, if we can reduce that cost and priority all stars.
Okay.
Okay. The other thing maybe Tonight.
We will take our next question from Sam cast a lineup with Wilsons.
Mr. <unk> your line is open.
Yep.
Making morning.
I just wanted to consciously he referenced the increase in unit cost given the fixed cost leverage and the decline in volume as people say spike in bits on the call and in the release about the.
The split between capitalized development and what hits the operating cost line I Wonder if you can give us any feel for how that might move around over the next sort of year or two as part of the mine plan.
Because I'll say this.
We're probably going to be a key determinant in the headline figure that you you.
End up disclosing quarter by quarter on a unit cost basis.
Okay.
I'm not in that mode I handle that one.
Yes can you hear me Sir.
I can yes.
Look I think.
Fourth we will obviously look at.
That consistency coming back into into the money.
Going forward so.
Hopefully over the next year or so that that sort of lumpiness will.
That would be taken out of the mine plan, which will then impact the lumpiness in terms about development cost being capitalized.
We will look at how we can smooth that I suppose going forward as well in terms of.
That's sort of calculation. So if you look at the depreciation side of things.
That's a forward looking calculation on a dollar per ton basis.
Look at how we can sort of look that into those numbers as well, but it's really beholding to the mining plan in terms of what they do on a quarterly basis and therefore impacting.
Impacting them.
So cancellations I'm not sure whether we can we can be clear in terms of preempting, what sort of developments looks like on a.
Our preemptive on a quarter over quarter by quarter basis, but then again, we will see whether we can make that easier and some sophie.
Sort of more predictable, especially from a financing point of view going forward.
And thanks, Mona and just just to be clear.
So the stat sheet release on say mining costs.
On that.
That would include.
Development and what it was capitalized and Expensed.
Yes.
That'd be released as sort of when they think just so you know you take you capitalized.
You know developing cost.
Set of numbers so.
And you can see that things with the stat accounts as well there'll be huge more recently.
And so in terms of your modeling.
That'll be a sort of that.
Mostly at fixed sort of dollar per ton.
That you apply to those that need it sorry, that's what those development meters, which had been capitalized.
You guys do a lot of development meters than a lot of that sort of fixed cost in staying you'll you'll bonnie cost, which is being spread out over whatever one you missed its mined in the first quarter is kind of what he's been in the previous quarter, which then exacerbates D. The difference I suppose from a cost per ton.
Speaker Change: Yeah, Okay. Thank you.
Thank you we will take our next question from Eric window with bank of Nova Scotia.
Great Hi, Mick and team. Thanks, so much for taking my question.
Just a follow up question here on the.
Sport requirements, you talked about it in the rehab any additional commentary in terms of where in the mind that is and do you think that will continue into Q2.
Yeah.
Most of it was back up in the shallow areas.
Is that right now as you know, it's a relatively big board and he is driving context, but.
You got great ground actually conditions at the bottom of not bad it's more around historical development areas that.
You know in the past probably haven't caught had as much rehab as they should have and so I guess yeah.
You sort of move from a reactive mode to a to a proactive mode, which is which is why we are now.
So back off.
Backup halfway through them, all and B to work on the shallow part of the day Claude.
Speaker Change: And I guess, we sort of had the opportunity to do that I would think we've got a little bit more to do in in Q2, but I sort of see it's not really.
It's not really a big work stream, that's going to happen in a year and you're right. We obviously will do rehab as we got it but there's been a bit of catch up with a stable cost side.
So that that's happened in Q1, and as Bill and I said you know.
The mining costs are sort of one market and a portion gets allocated against fraud related to development, but not not rehab and salaries.
Aimed up you end up if you do less of a problem related to the development Youre.
Mining unit right desktop as well.
Okay, great. Thank you I appreciate it.
And maybe just one more for me if don't mind are the Geophysical survey sounds interesting I know, it's still underway.
Speaker Change: Any thoughts on when.
When you might actually or what you might do in terms of additional exploration there and you know when you might actually see some some drilling there are lots more work to do this year maybe.
Yeah.
Everybody's extremely busy in the exploration World Sydney in Australia, and so it does take a pay wall to get utilization back up.
That's probably more of a Q3 Q4 top sort of thing.
The reality is we're focused on on exploration, which is not real true exploration, which is sort of pushing out the northern boundaries as well so the boundaries of known ore bodies.
So our focus really this quarter and really into Q3 is going to be all on that and then as we get the results back from the various surveys they will stop.
Chasing up some of that all the stuff that towards the back end of the year.
Okay No I appreciate that thank you very much.
Sorry, but we but you know as part of the <unk> proceeds we did raise a reasonable amount of money for exploration.
It's hard to push off without as quick as we can.
Hum.
Very under explored package is the short answer.
Yeah, Yeah, great to hear no I appreciate the extra color I'll hop back in the queue. Thanks.
Thank you. Our next question comes from David Radcliff with Global mining research.
Hi, good morning <unk>.
Morning.
Last question is just sort of reconciling the cashes 70, fog mail and I get the point about the two shipments plus the end of the quarter.
Maybe it would help if you could give us the actual.
Tons sold in concentrate during the quarter.
And any sort of guidance.
And if you can give us on where and what kind of levels of concentrate stockpiles are and where they sit at the mine or the Pope.
Oh I wouldn't have that off the top of my head more than I do you do you have that.
Yeah.
Nope nope.
So I think.
Just looking at a spreadsheet.
Yes.
Yeah Tobey.
Yeah, probably around that 8200.
Instead of Mark.
Okay.
Sorry.
Stock well, we can tag it off law and dance that stockpiles at the end of the quarter would have been.
We're pretty well one full shipment because we had a we had that base will go out on the second of April sorry.
30, <unk> March would have had one full vessel and we had another base alive.
Yes.
Speaker Change: On the 24th of March as well.
Yeah, I think I think there was another so that that'll be you know around.
Around that sort of five 6000 tonnes am best price of copper that was in that.
Inventory at the end.
The Dakota.
Okay.
Thank you we will take our next question from Tim Huff with Canaccord.
I'd say, Matt I think most of my questions and maybe not at the time I think I, probably just looking at your cash levels I'm happy with where they are sitting at the moment and.
And I guess, how do we use it and to look at that going forward.
I was expecting to see some cash build over the next quarter.
Well, maybe I'll start with that one more I and yeah look obviously as anyone who's not on me for a long time.
I actually like to run my business is net cash.
Clearly not there yet because you know we.
So kind of a reasonable amount of debt to body asset.
I'm sorry, more Kashi is better I think to one of the really a kohl's points.
Clearly having cash in the bank.
Three 4% versus tying up double at an interest you he's done a great long term solution.
So look our view is billed as much cash as you can.
And then use that to pay down your pay down all of your interest bearing liabilities and saw that that's sort of part of the two.
The simplification of the balance sheet to come.
But I think having 150 plus million Aussie dollars, where the liquidity on hand as you know.
This is where I'd like to be.
Yeah.
Yes, I think the other thing to add is just the lumpiness of the cash most guarantee so.
Those in terms of the current cash all we'd like to see.
So, let's see how that next quarter plays out from that point of view in terms of liquidity.
Speaker Change: And then it makes it.
For my plus the sort of management of our balance sheet net cash position as well sitting up there yet.
We can pay all interest bearing liabilities, especially D D.
On the more expensive side of that as a better and more efficient all of this as well.
Speaker Change: Now, we'll be sitting on the liquidity side and.
Just seeing how the next quarter or so plays out, especially with the higher copper price.
We shouldn't drive high liquidity and and and also dealing with the some.
It's a big simplification of the equity the capital structure.
You know that that will play out in the next couple of quarters.
Well, so I'm, so I think you'll see that that that simplification will come through that pretty strongly.
Yeah.
Okay. Thanks, very much guys.
But.
Again, just to reiterate the point team as much cash on the balance sheet as possible.
And Anna and the least amount of interest bearing liabilities on the balance sheet as possible and to pay down the more expensive of ours, I mean that order, which is sort of what we've done.
Clearly we have one other one there that you know we have a KOL data in the middle of next year and so you know.
Have you is that we think given where demand is position given where the cost of the traction the prime cost saw relative to the copper price.
We're generating good free cash and we would like to sort of de lever the balance sheet as quickly as possible.
Thank you as a reminder, if you'd like to ask a question press star one on your phone keypad at this time.
Speaker Change: Yeah.
We will take our next question from Jackie <unk> with BMO.
Thanks very much for taking my question I was just I'm looking at the.
Alright acuity charts in the release and thanks for providing that just super helpful. But.
Some of the the metrics like the tons milled per employee or is it because on the cost per meter I mean, they do look like they sort of leveled off or or maybe gotten slightly higher in the in the tons milled category. Mick can you talk a little bit about what drives the productivity improvements from here or was this was this quarter.
Just really a function of the <unk>.
Since the beginning of the quarter that kind of threw you guys off or how do you. How do you continue to get better.
Yeah look good question in and I'll, just move back to slide nine and yeah in terms of tons milled per employee it sort of flat on a quarter on quarter.
As you've seen in a few of these turnarounds I've done.
You know you start at rock stars in your business in terms of workforce and everything but eventually your car.
Copy of wireless or the profitability you need to grow you need to grow your production and your revenue line.
And that's really the ku from hearing, yes, and that power outage was sort of.
Two thirds of the way through the quarter and indeed depart from Australia is about parity.
We lost a favorite of momentum out of that side of the game. That's one part of it again, we've had a favorite of.
Elevated lie to send over and absenteeism, which is outside of the other impact was saying.
So I think we need to.
Stabilize the workforce we.
We need to you know actually just get better at out of a job and so we've talked about.
M life is a constraint of aynsley, but quite frankly in Q1 say much more than that constraint. It was consistency or lack thereof was actually I mind can strike.
One extraneous factor through the past piracy, but it's just all Brian sorry.
I'll be spending a bit more quality jobs, adding togo from this point I'll just to sort of try and see if we can improve that.
But yet you need to get more proximate and site productivity needs.
H to improve with the current head count that's the key.
Again, if you were to sort of put the sop relative to strive and averages.
These are still not these are not aggressive numbers are way we are sitting still.
Well I'm truly in the level of course, all I would say.
For a variety of reasons, but it'd be small and can do better I believe that we can do better as a company.
And so.
It's very much around planning motivation consistency, it's no point running like a race car for a week and then dropping off after that we have to just be consistent die and die out.
And that's really the focus for the business right now and then when we got to get these very big high grade Stopes come off that's great.
We as a company can do better than where we thing and that's what we have to do going forward.
No that makes sense and I appreciate the answer and just one other question I'm just I'm just curious how you're thinking about board you mentioned at the beginning of the call that you're looking to.
To improve our important diversity or realign the board sort of with them with the that you know I guess the profile of the business.
As you as you look for future acquisitions, and then also in the past you've mentioned, Australia, but also some other countries like Canada as well and may be in terms of where your future acquisitions come from like how do you. How do you think about airport competition do you wait until until you have an asset or two additional under your belt.
To see where the.
The portfolio kind of finds its center of gravity first or can you make the changes that youre looking at on the board without a without doing that first.
Well I think we can be proactive and sort of make some changes as we go along and you're right we were.
We've been very clear in terms of our strategy in terms of growing the business very focused on value, obviously, but a.
Australia, Canada, some states in the U S.
Sealy Europe as sort of a hunting grounds and say, yes that might well fine.
Where we want board members in terms of the.
Maybe they are applicable to each of those jurisdictions, but that's a reason for us to not move forward on.
Adding to the board you know I think the one comment I would size for a company of your size.
We actually have a very high performing board.
Probably punches above its weight 40 size company.
I'm sorry, the challenge is to try and find board members, who would be at that level and so we've been working very hard on that and obviously you know we'd like we'd like a bit more diversity on the board, but some.
I think it's a bit like assets you got board members when you fall under Rob why don't you grab them.
As opposed to sort of Whiting, Osama zanesville, something that might happen if a if a very high quality candid I.
Presents themselves. Then then you then you then you grabbed him when you can and so we're you know we're working hard on that and.
We'd like to say the board evolves again, if we do some M&A and we end up in a different jurisdiction.
Then we might add some other people with specific expertise in those jurisdictions, but right now we have an asset in Australia. Its copper and so you know the attributes we're looking for would be.
Someone who has knowledge of that.
Makes sense, thanks, very much for taking my questions.
Thank you as a final reminder, if you'd like to ask a question press star one on your phone keypad at this time. It is star one if you'd like to ask a question.
Yeah.
It appears we have no further questions at this time I would like to turn the conference back over to CEO mcmullan for any additional or closing remarks.
Thank you and thanks, everyone for tuning in and your questions I'll, obviously, we try and put as much information out as we can.
In summary, I think on the scorecard that we've that we've decided to mark ourselves against we didn't leave it on most of those goals I believe that the others are you know we have well in hand, and you know I would say from an operational turnaround perspective.
You know I think people, sometimes expect miracles and we've been clear that you know.
They they center adds are not linear upwards in the stride law items. So you know Q1 was was there a weakest quarter for the year I think.
We expect a pretty substantial improvement over the coming quarters.
But look at the end of the die at $4 60 copper.
Hum.
Having a high ride long life asset in a great jurisdiction log western New South Wales.
It's a great time to be in copper and with that I'd like to thank everyone for gets on.
And we look forward to the next call.
Thank you. This concludes today's teleconference. We appreciate your participation you may disconnect at any time.
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