Q1 2024 Karora Resources Inc Earnings Call
Operator: Good morning, ladies and gentlemen, and welcome to the Karora Resources first quarter 2024 conference call. Please note that at this time, all participant lines are in a listen-only mode. Following the presentation, there will be a question and answer session, and if at any time during this call you require immediate assistance, please press star zero for the operator. Also, please note that this call is being recorded on Monday, May 13, 2024. And I would like to turn the conference over to Paul Huet, Chairman and CEO. Please go ahead.
Good morning, ladies and gentlemen, and welcome to the career resources first quarter 2024 conference call note that at this time all participant lines are in a listen only mode. Following the presentation. There will be a question and answer session and if at any time. During this call you require immediate assistance. Please press star zero for the operator also no.
This call is being recorded on Monday may 13th 2024, and I would like to turn the conference over to Paul Hewitt Chairman and CEO. Please go ahead Sir.
Paul Huet: Thank you Sylvie.
Paul Huet: Good morning, everyone. I'd like to welcome you to Karora Resources' first quarter 2024 conference call. Please note, we will be referencing a slide deck, which is available on the homepage of our website, as well as through the webcast of this call, on slides three and four, Cautionary Notes. Before I begin the presentation...
Paul Huet: Good morning, everyone I'd like to welcome you to crew our resources first quarter 2024 conference call.
Paul Huet: Please note, we will be referencing a slide deck, which is available on the homepage of our website as well through the webcast of this call.
Over to slide three and four cautionary notes before I begin the presentation.
Paul Huet: I'd just like to remind you to please review our cautionary statements regarding forward-looking information and non-IFRS measures. These statements can be found in our first quarter MD&A, our news release, and in our presentation slides. Now, on to slide five, our highlights.
Paul Huet: I'd just like to remind you to please review our cautionary statements regarding forward looking information and non <unk> measures. These statements can be found in our first quarter MD&A.
Paul Huet: Our news release and in our presentation slides.
Paul Huet: Over to slide five our highlights.
Paul Huet: On today's call with me is Lee junk, our managing director for Australia legal.
Paul Huet: On today's call with me is Leigh Junk, our Managing Director for Australia. Leigh will take us through the operational highlights for the first quarter. Oliver Turner, our Executive Vice President of Corporate Development, is also on the call, and you will hear from Oliver later in the call.
Leigh Junk: He will take us through the operational highlights for the first quarter Oliver Turner.
Leigh Junk: Our executive Vice President of corporate development is also on the call and you will hear from Oliver later in the call but first.
Paul Huet: I will cover some recent highlights, then review our financial resources. First and foremost, let me tell you how excited I am about the merger transaction with Westgold. We announced on April 7th that this is really good news for our shareholders. The combination of Karora and Westgold provides ongoing exposure to the strong gold market conditions through a 49.9% interest in the new merged Westgold-Karora Ltd, which will be the largest unhedged gold producer in Australia.
Leigh Junk: I will cover some recent highlights.
Leigh Junk: Then review our financial results.
Paul Huet: The Merge Company offers substantial value to Karora shareholders, unlocking value across our mines and projects, introducing exposure to West Gold's strong operations, and includes substantial synergies. These synergies have the potential of reducing up to $440 million Canadian in cost for the new company, or almost $490 million Australian. This merger is a really great example of 1 plus 1 equals 3.
Leigh Junk: First and foremost let me tell you how excited I am about the merger transaction with Westfield, We announced on April seven.
This is really good news for our shareholders.
Leigh Junk: Combination of Carrara N Wesco provides ongoing exposure to the strong gold market conditions through a 49, 9% interest.
Leigh Junk: In the new merged West Cold Carrara story, which will be the largest unhedged gold producer in Australia.
Leigh Junk: The merged company offer substantial value to <unk> shareholders unlocking value across our mines and projects.
Leigh Junk: Introducing exposure to west called strong operations and includes substantial synergies.
Leigh Junk: These synergies have the potential of reducing up to $440 million Canadian in costs for the new company almost $490 million Australia.
Leigh Junk: This merger is a really great example of one plus one equals three.
Paul Huet: When you consider the value creation potential for both Karora and West Gold shareholders, we are excited to bring it across the finish line. To that end, legal and regulatory work is progressing well, and we have received very strong support from our shareholder base as we continue to engage with the market ahead of our vote in July. I know both Wayne and I are excited to hit the ground running after the deal closes to unlock all of the value we see in each other's operations.
Speaker Change: When you consider the value creation potential for both Carrara and West coast shareholders. We are excited to bring it across the finish line.
Speaker Change: To that end legal and regulatory work is progressing well.
Speaker Change: And we have received very strong support from our shareholder base as we continue to engage with the market ahead of our boat in July.
Speaker Change: I know, both Wayne and I are excited to hit the ground running after the deal closes to unlock all of the value we see in each other's operations.
Turning back to Carrabba's operations after a strong sales performance and costs coming in line to start the year, we remain confident in achieving the full year 2024 guidance, we announced during March.
Paul Huet: Turning back to Karora's operations, after a strong sales performance and costs coming in line to start the year, we remain confident in achieving the full year 2024 guidance we announced during the virus. As a reminder, our full year 2024 guidance is 170 to 185,000 ounces at an all-in sustaining cost between $1,250 and $1,375 an ounce U.S. Turning over to slide six, I will go over some financial highlights. This morning, we issued a news release with our Q1 2024 financial results. Our unaudited financial statements and MD&A for the period ended March 31, 2021, and 2024 have been filed and are available on our website under Karora's profile on CDAR Plus.
Speaker Change: As a reminder, our full year 2024 guidance is 170 to 185000 ounces at an all in sustaining cost between 1250 and $1375 an ounce U S.
Turning over to slide six I will go over some financial highlights.
Speaker Change: This morning, we issued a news release with our Q1 2024 financial results.
Speaker Change: Our unaudited financial statements and MD&A for the period ended March 31.
Speaker Change: 2024 have been filed and are available on our website.
Speaker Change: Under <unk> profile on SEDAR plus.
Speaker Change: Headline financial results for Q1 2024 included record revenue of $116 million up approximately 19% to Q1, 2023, and approximately 14% than the previous quarter.
Paul Huet: Headline financial results for Q1 2024 included record revenue of $116 million, up approximately 19% to Q1 2023 and approximately 14% compared to the previous quarter. Record revenue was driven by both the strong gold price environment and higher ounces sold. Q1 Adjusted Earnings were $13,000,000 or $0.07 per share, a $10 million improvement from the prior quarter. Adjusted EBITDA was $40 million, or $0.23 per share, and cash flow provided by operating activities was $43 million, or $0.23 per share, up $16 million, or $0.09 per share, from the previous quarter.
Speaker Change: Record revenue was driven by both the strong gold price environment and higher ounces sold.
Speaker Change: Q1, adjusted earnings were $13 million or <unk> <unk> per share.
Speaker Change: A $10 million improvement from the prior quarter.
Speaker Change: Adjusted EBITDA was $40 million or 23 per share and cash flow provided by the operation operating activities was $43 million or 23 per share up 16 million or <unk> <unk> per share from the previous quarter.
Speaker Change: Our cash balance at the end of Q1 remains very healthy and strong.
Paul Huet: Our cash balance at the end of Q1 remains very healthy and strong at $87 million, up another $5 million from the prior quarter, while we continue with our growth plan spending at BetaHunt, placing us in a very strong financial position. With that, I'll now turn the call over to Leigh Junk, who can take you through some of the operating highlights. Thank you.
Speaker Change: At $87 million up another $5 million from the prior quarter, while we continue with our growth plan spending app Anaheim, placing us in a very strong financial position.
Speaker Change: With that I'll now turn the call over to lead young who can take you through some of the operating highlights over to you Lee.
Leigh Junk: Thank you, Paul, and hello, everyone. Our operating team, led by Peter Ganza, continued to deliver a safe and productive operational performance from our Beater Hunt and Higginsville mines, and I thank all our team for their hard work and dedication to our safety culture while delivering these results. On slide 8, on a consolidated basis for Q1, as previously announced, we produced 36,147 ounces, 436,000 tonnes milled, and an average grade of 2.75 grams per tonne. Consolidated meal recoveries remain strong and consistent at 94%.
Leigh Junk: Thank you Paul and Hello, everyone.
Leigh Junk: Now operating team led by paid games continued to deliver a safe and productive operational performance from our beta and hanging zelle minds.
Leigh Junk: Thank <unk> team for their hard work and dedication to our safety culture, while delivering these results.
On slide eight on a consolidated basis for Q1 as previously announced we produced 36147 ounces from 436000 tons milled an average grade of 275 grams per tonne.
Leigh Junk: Consolidated mill recoveries remained strong and consistent at 94%.
Leigh Junk: Consolidated cash operating cost for Q1.
Leigh Junk: Consolidated cash operating costs for Q1 were $1,193 US per ounce sold, and AISC was $1,285 US per ounce, well within our four-year guidance range of $1,250 to $1,375 per ounce US. Quarter 1 AISC was about $150 US an ounce, or 10% lower than the prior quarter, reflecting higher gold sales and the impact of higher nickel by-product credits, of $2.9 million or $54 US an ounce compared to $5 an ounce for the prior quarter. Turning over to slide nine now.
Leigh Junk: <unk> $1193 U S per ounce sold and.
Leigh Junk: <unk> was $1295 U S per ounce well within our full year guidance range of $12 50 to $13 $75 per ounce U S.
Quarter, one <unk> was about $150, an ounce or 10% lower than the prior quarter, reflecting higher gold sales and the impact of higher nickel bought product.
Leigh Junk: Of $2 9 million or $54, an ounce compared to $5 an ounce so the prior quarter.
Leigh Junk: Turning over to slide now slide nine.
Leigh Junk: At Beta Hunt, during Quarter 1, we mined 271,200 tonnes at an average grade of 3.73 grams per tonne, containing 32,485 ounces of gold. This represented a 10% reduction from the first quarter of 2023 ore tonnes mined and a 25% decrease from the prior quarter's one tonnes, reflecting short-term delays experienced in the stoking schedule, power upgrades in the lower section of the mine, and a number of local power transmission network failures impacting the ongoing production ramp-up at Beta Hunt.
Leigh Junk: During quarter, one we mined 271200 tonnes at an average grade of $3 seven three grams per ton containing 32000, and 495 ounces of gold.
Leigh Junk: This represented a 10% reduction from the first quarter of 2023 ore tonnes mined and a 25% decrease from the prior quarter one tons, reflecting short term delays experienced in the stoping schedule.
Leigh Junk: Upgrades and allow us to extend the mine and a number of local power transmission network file is impacting the ongoing production ramp up at later on.
Leigh Junk: Contango was 8% lower than the prior quarter, reflecting the planned mining of the higher grade section of beta Hunter in the quarter.
Leigh Junk: Contained gold was 8% lower than the prior quarter, reflecting the planned mining of a higher-grade section of Beta Hunt during the quarter. The majority of the mined tonnes were from the central and southern sections of the western flanks and the scheduled higher-grade ozones from A zone. Overall, though, sales remained very strong for the quarter at over 40,000 ounces.
Leigh Junk: The majority of demand tons were from the central and southern sections of western flanks, and the scheduled higher grade ore zones from ISI.
Leigh Junk: Overall sales remained very strong for the quarter and over 40000 emphasis.
Leigh Junk: Switching to processing, 271,000 tonnes of Beta Hunt material was milled at an average grade of 3.81 grams per tonne for production of 31,249 ounces of gold. However, compared to the prior quarter, higher grades were offset by the lower processed tons, resulting in 9% lower gold production compared to the prior quarter. Cash operating costs per ounce sold at Beta Hunt were very high at US $869 per ounce in the first quarter of 2024, which compared to $1,123 the previous quarter.
Leigh Junk: Switching to processing 271000 tons of beta Hunt material was milled at an average grade of three one grams per tonne for production of 31249 ounces of gold.
Leigh Junk: Compared to the prior quarter high grades were offset by the lower processed tonnes, resulting in 9% lower gold production compared to the prior quarter.
Leigh Junk: Cash operating cost per ounce sold at beta Hunt were very strong at U S $869 per ounce in the first quarter of 2024, which compared to $1123 the previous quarter.
Leigh Junk: The reduction in cash operating cost per ounce from the previous quarter reflects the impact of the higher grades and higher sales volume in Q1.
Leigh Junk: The reduction in cash operating costs per ounce from the previous quarter reflects the impact of the higher grades and higher sales volume in Q1. Turning to nickel, we mined 4,337 tonnes of nickel ore at an estimated grade of 2.5% during the first quarter, compared to 5,253 tonnes of nickel ore at an estimated grade of 2.3% the previous quarter. We're currently developing a drive from our Western Flanks decline across to Fletcher, which is really exciting for Beta Hunt.
Leigh Junk: Turning to Nikko, we mined 4337 tonnes of nickel ore at an estimated rate of three 5% during the first quarter compared to 5253 tonnes of nickel ore had an estimated granted two 3% in the previous quarter.
Leigh Junk: We are currently developing a draw from our western flanks decline across to Fletcher, which is really exciting for beta hub.
Leigh Junk: Today, we have been mining primarily from only two main areas, Western Flanks and A-Zone. So to access a whole new mineralized zone in addition to those two is significant. We plan to intersect the ore in late June, which will set us up for ore deliveries from Fletcher for the second half of the year and beyond. If you've seen some of the thick, high-grade sections in our announcement, then you'll see why we are so keen to commence mining there and also provide additional working faces and stopping areas to the mine. We are still continuing to draw Fletcher as well.
Leigh Junk: To date, we have made morning, primarily from I need two main areas western flanks, and ISI, sorry to access a whole new mineralized zone. In addition to those two is significant.
Leigh Junk: We plan to undertake the ore in late June which will set us up for all deliveries from Fletcher for the second half of the year and beyond.
Leigh Junk: If you had seen some of the high grade sections and Air announcement, then Youll see why we are so kind to commence mining and.
Leigh Junk: And also provide additional working faces and striping areas to the mine plan.
Leigh Junk: We are still continuing to drill Fletcher as well.
Leigh Junk: Now looking at slide 10 production from Higgins he'll minds totaled 4998 recovered ounces based on milling 164700 tons at an average grade of one gram per tonne.
Oliver Turner: Now looking at slide 10, production from Higginsville Mines totaled 4,898 recovered ounces based on milling 164,700 tonnes at an average grade of one gram per tonne. Production in the first quarter of 2024 was 16% lower than the previous quarter. Despite 34% higher tonnes processed, reflecting lower grade, compared to the previous quarter as mining was negatively impacted due to extreme wet weather and the laying back of sections of the Pioneer pit walls, which required the use of historic low-grade stockpile feed sources.
Leigh Junk: Production in the first quarter of 2024 was 16% lower than the previous quarter, Despite a 34% higher tons processed reflecting lower grade.
Compared to the previous quarter as mining was negatively impacted due to extreme wet weather.
Leigh Junk: The laying back of sections of the pioneer pit walls, which required the use of historic low grade stockpile feed sources.
Leigh Junk: All of this plus the other temporary impacts of the higher cost per ton reported in our call on March 22nd, including the temporary use of contract crushing and higher costs incurred on setting up the two boys underground resulted in short term cash operating cross cost sitting in scale.
Oliver Turner: All this plus the other temporary impacts of the higher cost per tonne reported in our call on March 22nd, including the temporary use, the contract crushing, and higher costs incurred on setting up the two boys underground, resulted in short-term higher cash operating costs at Higginsville. The majority of planned ounces at Higginsville are to be mined in the remainder of 2024 as production of both Pioneer and Two Boys ramps up in the second quarter, and we'll see higher production and lower costs at both of these mines reach full production. With that, I'll turn the call over to Oliver Turner.
Leigh Junk: The majority of planned ounces at Hagen zero out of your mind in the remainder of 2024 as production of both pioneer and two boys ramps up in the second quarter, and we will see higher production and lower costs of both of these months reached full production.
Leigh Junk: With that I'll turn the call over to Oliver Turner.
Oliver Turner: Thank you Lee and good morning, everyone.
Oliver Turner: Thank you, Leigh, and good morning, everyone. Without question, the highlight of the last quarter was our merger announcement with West Gold. The synergies realized, projects accelerated, combined team, and tremendous cultural fit all point in a positive direction for the new West Gold operations across Western Australia once the merger closes in July. In the context of the market, what we are creating via this merger will be one of the largest gold producers in Australia, entirely unhedged, in what is the strongest gold price environment we have ever seen.
Oliver Turner: Without question the highlight of the last quarter was our merger announcement with less gold the synergies realized projects accelerated combined team and tremendous cultural fit all plant in a positive direction for the new less gold operations across Western Australia. Once the merger closes in July and.
Oliver Turner: In the context of the market what we are creating through this merger will be one of the largest gold producers in Australia entirely unhedged and what is the strongest gold price environment, we have ever seen and these types of exciting markets being our first stop vehicle of choice is even more powerful and that's exactly what the new wesco will be a top tier investment vehicle for larger institutional investors.
Oliver Turner: In these types of exciting markets, being a first-stop vehicle of choice is even more powerful, and that's exactly what the new Westco will be, a top-tier investment vehicle for larger institutional investors, which neither company currently has access to on their own. Furthermore, this exposure will be available for investors on both the ASX and the TSX, creating a round-the-clock gold and nickel investment vehicle. A significant benefit of the larger scale is increased index demand.
Oliver Turner: Which neither company currently has access to on their own.
Oliver Turner: Furthermore, this exposure will be available for investors on both the ASX and <unk>, creating a round the clock gold and nickel investment vehicle.
Oliver Turner: A significant benefit at the larger scale is increase index demand we.
Oliver Turner: We anticipate strong buying from indexes and ETFs on both the ASX and the TSX dual listings. On the ASX, we expect demand from the ASX 200, and on the TSX, we expect demand from the GDX. To date, our marketing of the deal to institutional investors has gone very well, with strong support shown by both sets of shareholders in Australia, Canada, the US, and Europe. We continue to deliver our message to investors, with our marketing roadshow continuing this week.
Oliver Turner: Anticipate strong buying from indexes and Etfs on both the ASX and the <unk> dual listing on the ASX, we expect demand for the <unk> 200, and on the T. S X, we expect demand from the Gtx.
Today, our marketing of the deal to institutional investors has gone very well with strong support shown by both sets of shareholders in Australia, Canada. The U S and in Europe, We continued to deliver a message to investors for their marketing Roadshow, continuing this week and on the research side. We've also seen strong support from our analyst coverage with tender ratings coming in.
Oliver Turner: And on the research side, we've also seen strong support from our analyst coverage, with tender ratings coming in. Overall, I'm very excited at the prospect of being a shareholder of the combined company in a market for gold producers that is unlike anything we have seen before in our careers. With that, I'll turn the call back over to Paul.
Oliver Turner: Overall I am very excited at the process to being a shareholder of the combined company and a market for gold producers that is unlike anything we've seen before in our careers and with that I'll turn the back call the call back over to Paul.
Paul: Thanks, Oliver <unk> over to you, we're going to turn it over for questions at the moment.
Paul Huet: Thanks, Oliver. Sylvia, over to you. We're going to turn it over for questions at the moment.
Operator: Thank you, sir. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by two. And if you're using a speakerphone, we do ask that you please lift the handset before pressing any key. Please go ahead and press star one now. If you do have any questions. And your first question will be from John Sclodnick at Desjardins. Please go ahead, John.
Paul: Thank you, Sir ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your Touchtone phone you will hear a tweet on prompt acknowledging your request and if you would like to withdraw from the question queue. Please press star followed by two and if you're using a speaker phone. We do ask that you. Please lift the handset before pressing.
Paul: Keith. Please go ahead and press Star one now if you do have any questions.
Speaker Change: And your first question will be from John Scott Nick at the Shelby. Please go ahead John.
Speaker Change: Great. Thanks for taking my question and congrats guys, obviously on a good quarter in terms of cost, but also obviously the merger being the highlight there I.
John Sclodnick: Great, thanks for taking my question and congrats, guys, obviously on a good quarter in terms of cost, but also obviously the merger being the highlight there, I guess. And on that topic, I'm just curious about the kind of market reaction that you've seen through this marketing with Westgold, and I guess a further question on that topic is, have you seen kind of a bit of a differentiated reaction between the North American market and the Australian market?
Speaker Change: And on that topic, just curious kind of the the market reaction that you have seen through this marketing.
Speaker Change: West Gould.
Speaker Change: A further question on that topic is have you seen kind of a bit of a differentiated reaction between the north American market and Australian market.
Speaker Change: Yeah.
Paul Huet: Yeah, thanks, John. It's Paul here.
Speaker Change: Yes, Thanks, John It's Paul here.
To be quite honest.
We obviously started marketing immediately both in North America, we covered all of the desks, including yours as you know we did all the active shareholders. We got immediate support as you know directly from one of our largest shareholders Eric Sprott that was very well received.
Paul Huet: To be quite honest, we obviously started marketing immediately in North America. We covered all the desks, including yours. As you know, we did all the active shareholders. We got immediate support, as you know, directly from one of our largest shareholders, Eric Sprott, and that was very well received. Following that, we did a huge campaign in Australia that was very well received. The message is being received on both sides of the ocean here very positively.
Speaker Change: Following that we did a huge campaign over in Australia.
Speaker Change: It was very well received the message is being received on both sides.
Speaker Change: The ocean here very positively we once people understand what it is we're building they really really like it. Many people. We are seeing are buying more of it the.
Paul Huet: Once people understand what we're building, they really, really like it. Many people we are seeing are buying more of it. The reception has been quite strong in this current gold market, and we're not seeing a different response. We're seeing quite a positive response on both sides. With that, we're doing some follow-up here in the coming days in San Francisco, New York, Toronto, even over in Europe. So, quite a bit of additional marketing just to see some of the people we might have missed in the first rounds and to follow up with both Wayne and myself side-by-side on any other of the clients.
Speaker Change: The reception has been quite strong in this current gold market and we're not seeing a different response, we're seeing quite positive response on both sides with that we're doing some follow up here.
Speaker Change: In the next coming days and in San Francisco, New York, Toronto, even over in Europe, So quite a bit of additional marketing just to.
Speaker Change: You see some of the people we might have missed in the first round.
Speaker Change: And to follow up with both Wayne and myself side by side on any other other clients, but overall the message on both sides of the ocean has been quite positive very well received.
Paul Huet: But overall, the message on both sides of the ocean has been quite positive, very well received. It's an easy story to get out there and get in front of, John. It's not a tough one to get out there and sell; it sells itself.
Speaker Change: That's an easy story to get out there and get in front of John It's not a tough one to get out there and sell it sells itself.
Speaker Change: Excellent I appreciate that and yes, it and it seems like a vehicle perfectly designed for this gold price environment, particularly Aussie dollar gold price environment. That's it for me thanks guys.
John Sclodnick: Excellent. No, I appreciate that. And yes, it seems like a vehicle perfectly designed for this gold price environment, particularly the Aussie dollar gold price environment. That's it for me. Thanks, guys.
Speaker Change: Thank you once again, ladies and gentlemen, if you do have any questions. At this time. Please press star followed by one and your next question will be from Jeremy Horn of Canaccord Genuity. Please go ahead.
Operator: Thank you. Once again, ladies and gentlemen, if you do have any questions at this time, please press star followed by one. And your next question will be from Jeremy Hoy at Canaccord Genuity. Please go ahead.
Jeremy Horn: Hi, good morning, everyone.
Jeremy Hoy: Hi, good morning, everyone. I have a couple of questions from me.
Jeremy Hoy: At Fletcher, you said you should access mineralization by Q3. Can you provide a bit more color on the progress there and the prospect of us seeing meaningful gold production from the zone this year? And will it be a significant percentage of production in H2?
A couple of questions.
Jeremy Horn: Fletcher you've said you should access mineralization by Q3 can you provide a bit more color on the <unk>.
Jeremy Horn: <unk> there.
Jeremy Horn: Prospectors of seeing meaningful gold production from the zone this year.
Jeremy Horn: And will it be a significant percentage of production in <unk>.
Jeremy Horn: Hey, Jeff Hey, Jeremy It's Paul.
Paul Huet: Sorry, I'm going to let Leigh answer that one. Go ahead, Leigh. Sorry, Paul.
Jeremy Horn: Yeah, sorry, I am going to let Lee answer that go ahead Lee.
Leigh Junk: Sorry Paul, um, G'day Jeremy, um, yeah it's going really well, our drive out to Fletcher is going really well, we should hit it, late this current quarter, so that'll give us really the half two to deliver all our ore from Fletcher, we're planning some ore driving and and hopefully do some stope towards the end of the year in Q4, so it'll be pretty meaningful given that if you've seen some of the grades out of there, hopefully that gives you a grade
Leigh Junk: Sorry, Paul.
Leigh Junk: Hi, Jeremy.
Leigh Junk: Yes, it's going really well and drive that to Fletcher is.
Leigh Junk: It's going really well we should hit it.
Speaker Change: Light this current quarter side that will give us really.
Speaker Change: The half two to deliver oil at all from Fletcher.
Speaker Change: We're planning a.
Speaker Change: So more driving in.
Speaker Change: And hopefully do some stope.
Towards the end of the.
Speaker Change: Towards the end of the year in Q4, so it'll be it'll be pretty meaningful given that if youre seeing some of the grades out of there hopefully that gives it quite a bit of a kick.
Speaker Change: Yes, it's definitely higher grades based on the drill results.
Leigh Junk: Yeah, definitely higher grades based on the drill results. Um, on the resource, do you guys have an update on the timing for it? Is it still looking at the back half of this year?
Speaker Change: On the resource.
Do you guys have an update on the timing for it and still looking at the back half of this year.
Leigh Junk: Yeah, Jeremy, we're still drilling there now, so we're drilling at the same time as we're heading out there, so it'll just be when we cut that off because we're continuously getting draw results back, but it'll be in the second half of the year.
Speaker Change: Yeah, Jeremy we're still drilling there now so we're drilling at the same time as we're heading out there so.
Speaker Change:
Speaker Change: Just be when we cut that off because.
Speaker Change: We are continuously getting drill results back, but it will be in the second half of the year.
Speaker Change: Okay great.
Jeremy Hoy: Okay, great. And finally, for me, what's the outlook for Higginsville production from Pioneer, Open Pit, and Two Boys over the balance of the year?
And finally for me, what's the outlook for.
Speaker Change: Higgins fill production from pioneer open pit in two boys over the balance of the year.
Speaker Change: Sure.
Leigh Junk: Sure, in... Between the two, we'll probably produce about 400,000 tonnes, give or take from both of those projects, roughly around 30,000 ounces from here towards the end of the year.
Speaker Change: Between the two will probably produce about 400000 tons give or take from both of those projects.
Speaker Change: And roughly around 30000 ounces in the.
Speaker Change: From here towards the end of the year.
Speaker Change: Okay, that's really helpful. Thanks.
Jeremy Hoy: Okay, that's really helpful. Thanks.
Speaker Change: Is it for me.
Mr. Zhu: Thanks, Jim Thank you and at this time I would like to turn the call back over to Mr. Zhu for any closing remarks.
Operator: Thank you, and at this time, I would like to turn the call back over to Mr. Huet for any closing remarks.
Zhu: Thanks, Sylvie I know everyone's quite busy Hubert before they sign off I just wanted to thank everyone for joining our call today.
Paul Huet: Thanks, Sylvie. I know everyone's quite busy before they sign off. I just want to thank everyone for joining our call today. I just wanted a quick shout out to our team in Australia who've been working very, very hard around the clock during this time, and say thank you to our entire team in South Africa, our shareholders, and all the analysts who've been covering this. So, thank you to everyone. We appreciate all your support and that of our shareholders, and we'll be seeing you soon. Have a great day. All the best. Ladies and gentlemen, this does
Zhu: Just wanted a quick shout out to our team in Australia, who have been working very very hard around the clock. During this time and say thank you to our entire team in South Africa, our shareholders and all of the analysts who've who've been covering us. So thank you to everyone. We appreciate all your support and our shareholders.
Zhu: And we will be seeing as soon and have a great day all the best.
Speaker Change: Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.
Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines.
Speaker Change: Yeah.
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Speaker Change: Yeah.
Speaker Change: Hum.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Leigh Junk: and the New York Times. I'm your host, Leigh Junk, and I'll see you next time.
Speaker Change: Yeah.
Speaker Change: Yeah.
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