Q4 2024 Silvercorp Metals Inc Earnings Call
[music].
Operator: Thank you for standing by. Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the Silvercorp Forward Quarter and Full Year Fiscal 2024 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise.
Thank you for standing by.
My name is Jenny.
That will be your conference operator today at this time I would like to welcome everyone to the Silver Corp, fourth quarter and full year fiscal 2024 financial results Conference call.
Lines have been placed on mute to prevent any background noise.
Speaker Change: The speaker's remarks, there will be a question and answer session.
Speaker Change: I would like to ask a question. During this time simply press Star then the number one any telephone keypad.
Speaker Change: If you would like to withdraw your question. Please press Star then the number two.
Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star, then the number 2. Thank you. I would now like to turn the conference over to Lon Shaver, President of Silvercorp. Please go ahead.
Kim.
Speaker Change: I would now like to turn the conference over to Lon Shaver President of Silver Corp. Please go ahead.
Lon Eric Shaver: Thank you, Jenny. On behalf of Silvercorp, I'd like to welcome you all to this call to discuss our fourth quarter and full fiscal 2024 financial results, which were released yesterday after the market closed. A copy of the news release, the MD&A, and the financial statements for today's call are available on our website. Before we get started, I'm required to remind you that certain statements on today's call will contain forward-looking information within the meaning of applicable securities laws. Please review the cautionary statements included in our news release and presentation, as well as the risk factors described in our most recent 10-Q, Form 40-F, and annual information form.
Lon Eric Shaver: Thank you Jenny on behalf of Silver Corp, I would like to welcome you all for joining this call to discuss our fourth quarter.
Lon Eric Shaver: And our full fiscal 2020 for our financial results, which were released yesterday. After the market closed a copy of the news release MD&A and the financial statements for today's call are available on our website.
Lon Eric Shaver: Before we get started I'm required to remind you that certain statements on today's call will contain forward looking information within the meaning of applicable securities laws. Please review the cautionary statements included in our news release and presentation as well as the risk factors described in our most recent 10-Q form 40 F and annual information form.
Lon Eric Shaver: Kicking off with the quarterly financial results, with respect to the quarter, despite the regular impact of the Chinese New Year slowdown, our minds operated above expectations, as reflected in our previously released production numbers. Revenue in Q4 totaled $43 million, marking a 25% increase compared to the same period last year. This growth reflects a 5.4 million increase from higher volumes of gold, silver, and zinc sold as well as a 3.3 million increase from higher realized prices for silver, gold, and lead.
Kicking off with the quarterly financial results with respect to the quarter. Despite the regular impact of the Chinese new year slowdown our mines operated above expectations as well as <unk>.
Reflecting our previously released production numbers.
Lon Eric Shaver: Revenue in Q4 totaled 43 million, marking a 25% increase compared to the same period last year.
This growth reflects a $5 4 million increase from higher volumes of gold silver and zinc sold as well as a $3 3 million increase from higher realized prices for silver gold and lead.
Lon Eric Shaver: Based on production and realized prices for the quarter, silver was 55% of revenue on a net basis compared to 57% in Q4 of last year. Our fourth quarter net income attributable to equity shareholders was $5.5 million, or $0.03 per share, and that compared to a net income of $200,000, or $0.00 per share, for the same period last year. The main contributor to the increase was the previously mentioned factors affecting revenue, a $2 million increase in mark-to-market gain on investments, which offset a $3.2 million increase in income tax expense.
Lon Eric Shaver: Based on the production and realized pricing for the quarter at silver was 55% of revenue on a net basis compared to 57% in Q4 of last year.
Lon Eric Shaver: Our fourth quarter net income attributable to equity shareholders was $5 5 million or <unk> <unk> per share and that compared to net income of two.
Lon Eric Shaver: 200000, or zero cents per share for the same period last year.
Lon Eric Shaver: The main contributor to the increase was the previously mentioned factors affecting revenue.
Lon Eric Shaver: $2 million increase in mark to market gain on investments, which offset a $3 2 million increase in income tax expenses.
Lon Eric Shaver: On an adjusted basis, with adjustments made to remove the impacts of non-cash and one-time items, earnings for the quarter were $3.8 million, or $0.02 per share, compared to $5 million, or $0.03 per share, for the same period last year. The year-over-year decrease was due to a $2.5 million increase in withholding tax paid on funds distributed out of China.
On a day adjusted basis with adjustments made to remove the impacts of noncash and onetime items earnings for the quarter were $3 8 million or <unk> <unk> per share compared to 5 million or <unk> <unk> per share for the same period last year. The year over year decrease was due to a $2 5 million increase in withholding tax paid on funds just.
Lon Eric Shaver: Submitted out of China.
Lon Eric Shaver: Cash flow from operating activities totaled $10.2 million in Q4, and that compared favorably to $5.7 million in the prior year quarter. The increase was mainly due to the previously mentioned factors impacting revenue and net income. Before changes in non-cash operating work in capital, our cash flow was $14.2M vs. $11.6M in Q4 of last year. Capital expenditures totaled approximately $13.4 million in Q4. That was up from $9.5 million in the same quarter last year, primarily due to increased tunnel and ramp development activities at Yang. We ended the quarter with $185 million in cash and cash equivalents and short-term investments.
Lon Eric Shaver: Cash flow from operating activities totaled $10 2 million in Q4 and that compared favorably to $5 7 million in the prior year quarter. The increase was mainly due to the previously mentioned factors impacting revenue and net income.
Lon Eric Shaver: Before changes in noncash operating working capital our cash flow was $14 2 million versus $11 6 million in Q4 of last year.
Lon Eric Shaver: Capital expenditures totaled approximately $13 4 million in Q4 that was up from $9 5 million in the same quarter last year, primarily due to increased tunnel and ramp development activities at Yang.
Lon Eric Shaver: We ended the quarter with $185 million in cash and cash equivalents and short term investments and this figure does not include our investments in associates and other companies, which had a total market value of $112 million on March 31.
Lon Eric Shaver: And this figure does not include our investments in Associates and other companies, which had a total market value of $112 million on March 31. To quickly cover the full year's financial results, revenue for fiscal 2024 was $215 million, which was up 3% compared to the prior year, and this reflected a $19.9 million increase due to higher realized silver and gold prices, as well as a $5.3 million increase due to more gold sold.
Lon Eric Shaver: To quickly cover the full year financial results revenue for fiscal 2024 was $215 million that was up 3% compared to the prior year and this reflected a $19 9 million increase due to higher realized silver and gold prices as well as a $5 3 million increase for more gold sold this was offset by a $12.
Lon Eric Shaver: This was offset by a $12.6 million decrease from lower volumes of silver, lead, and zinc and a $5.5 million decrease from a lower realized zinc price. Net income attributable to equity shareholders was $36.3 million, or $0.21 per share, compared to $20.6 million, or $0.12 per share, in the prior year.
Lon Eric Shaver: $6 million decrease from lower volumes of silver lead and zinc and a $5 5 million decrease from a lower realized price.
Lon Eric Shaver: Net income attributable to equity shareholders was $36 3 million or <unk> 21 per share.
Lon Eric Shaver: <unk> to $20 6 million or <unk> 12 per share in the prior year. This increase primarily reflects the factors already mentioned affecting revenue of $10 million increase in mark to market gains on investments at an offsetting negative impact of 5.2 from foreign exchange fluctuations.
Lon Eric Shaver: This increase primarily reflects the factors already mentioned, affecting revenue, a $10 million increase in mark-to-market gains on investments, and an offsetting negative impact of $5.2 from foreign exchange fluctuations. Our adjusted earnings for the year were $39.3 million or $0.22 per share compared to $37 million or $0.21 per share in the prior year. Our cash flow from operating activities after change of the non-cash working capital for the year was $91.6 million.
Lon Eric Shaver: Our adjusted earnings for the year were $39 3 million or 22 per share compared to $37 million or 21 cents per share in the prior year.
Lon Eric Shaver: Our cash flow from operating activities after changes in noncash working capital for the year was $91 6 million that was up from $85 6 million in the prior year due to these factors mentioned above affecting revenue and net income.
Lon Eric Shaver: That was up from $85.6 million in the prior year due to these factors mentioned above affecting revenue and net income. Capital expenditures were approximately $64 million in fiscal 2024. That was up from $58 million in the prior year, and these expenditures were in line with our guidance for the year of $64.7 million. With respect to quarterly production, as we previously reported, we mined 195,000 tons of ore and milled 237,000 tons of ore, up 7% and 32%, respectively, compared to the same quarter last year.
Lon Eric Shaver: Capital expenditures were approximately $64 million in fiscal 2024 that was up from 58 million in the prior year and this expenditures where are these expenditures were in line with our guidance for the year of $64 7 million.
Lon Eric Shaver: With respect to the quarterly production as we previously reported.
Lon Eric Shaver: We mined 195000 tonnes of ore and milled 237000 tonnes of ore up 7% and 32% respectively compared to the same quarter last year.
Lon Eric Shaver: We produced on a consolidated basis approximately 1.2 million ounces of silver, 1,900 ounces of gold, 12.5 million pounds of lead, and 4.6 million pounds of zinc in the quarter, representing increases of 4%, 92%, 15%, and 27%, respectively, in silver, gold, lead, and zinc production. The cash cost per ounce of silver net of by-product credits was $1.22 in the fourth quarter, compared to $0.92 The increase reflects a $4.8 million increase in production costs, offset by a $4.4 million increase in by-product credits.
Lon Eric Shaver: On a consolidated basis, approximately one 2 million ounces of silver 1900 ounces of gold $12 5 million pounds of lead and $4 6 million pounds of zinc in the quarter, representing increases of 4%, 92%, 15% and 27% respectively in silver gold lead and zinc.
Lon Eric Shaver: <unk> production.
Lon Eric Shaver: The cash cost per ounce of silver net of byproduct credits was $1 22 in the fourth quarter compared to 92 cents in the prior year quarter. The increase reflects a $4 8 million increase in production costs offset by a $4 4 million increase in byproduct credits.
Lon Eric Shaver: The all-in sustaining cost per ounce of silver netted by product credits was $14.36 in Q4 compared to $13.85 in Q4 of fiscal 2023. The increase primarily reflects the same factors that impacted the cash costs as well as a $1.3 million increase in sustaining capex. Full Year Production Recap
Lon Eric Shaver: The all in sustaining cost per ounce of silver net of byproduct credits was $14 36 in Q4.
Lon Eric Shaver: Compared to $13 five in Q4 of fiscal 2023.
Lon Eric Shaver: The increase primarily reflects the same factors that impacted the cash costs as well as a $1 3 million increase in sustaining capex.
Lon Eric Shaver: Looking at the results for the full year, we mined and milled 1.1 million tons of ore in fiscal 2024, that was up 5% and 3%, respectively, compared to fiscal 2023. Metal production totaled 6.2 million ounces of silver, 7,300 ounces of gold, 63 million pounds of lead, and 23 million pounds of zinc last year. Silver and lead production decreased by 6% and 7%, respectively, over fiscal 2023 due to lower head grades and the mining of 58,000 tons of gold ore, which contributed to a 65% year-over-year increase in gold production.
Lon Eric Shaver: The full year production recap.
Looking at the results for the full year, we mined and milled 1.1 million tons of ore in fiscal 2024.
Lon Eric Shaver: That was up 5% and 3% respectively compared to fiscal 2023.
Lon Eric Shaver: Metal production totaled $6 2 million ounces of silver 7300 ounces of gold 63 million pounds of lead and 23 million pounds of zinc.
Lon Eric Shaver: Last year, silver and lead production decreased by 6% and 7% respectively over fiscal 2023 due to lower head grades and the mining of a 58000 tons of gold ore, which contributed to a 65% year over year increase in gold production.
Lon Eric Shaver: For the year, the cash cost per ounce of silver net of by-product credits was negative 38 cents compared to negative 42 cents in fiscal 2023. The increase reflects a $3.6 million decrease in by-product credits, but that was offset by a $3.2 million decrease in production costs.
Lon Eric Shaver: For the year, the cash cost per ounce of silver net of byproduct credits.
Lon Eric Shaver: Was it negative 38 cents compared to negative 42 cents in fiscal 2023.
Lon Eric Shaver: The increase reflects a $3 6 million decrease in byproduct credits.
But that was offset by $3 2 million decrease in expense production costs.
Lon Eric Shaver: The all-sustaining cost per ounce of silver net of byproduct credits in fiscal 2024 was $11.38 compared to $9.73 in fiscal 2023. The increase reflects the same factors that impacted cash costs and a $4.3 increase in sustaining capex, a $800,000 increase in corporate expenses, and overall less silver sold during the year compared to the prior year. Looking ahead to guidance for fiscal 2025, we announced our production and cost guidance in April along with our Q4 production results.
Lon Eric Shaver: The all in sustaining cost per ounce of silver net of byproduct credits in fiscal 2024.
Lon Eric Shaver: I was 11 38 compared to 973 in fiscal 2023 the.
Lon Eric Shaver: The increase reflects the same factors that impacted cash costs and a 4.3 increase in sustaining capex.
Lon Eric Shaver: 800000 increase in corporate expenses and overall less silver sold during the year compared to the prior year.
Lon Eric Shaver: We expect to produce between 6.8 to 7.2 million ounces of silver, 7,900 to 9,000 ounces of gold, 64 to 69 million pounds of lead, and between 27 to 30 million pounds of zinc, representing production increases of approximately 9% to 17% in silver, between 8% and 23% in gold, 2% to 10% in lead, and between 16 and 29% increases in zinc compared to our actual fiscal 2024 results. In terms of cost guidance, we are anticipating between $77 and $79.7 per ton on a cash cost basis, which is in line with fiscal 2024's actual figure of $78.86 per ton.
Lon Eric Shaver: Looking ahead to guidance for fiscal 2025, we announced our production and cost guidance in April along with the Q4 production results, we expect to produce between six eight to $7 2 million ounces of silver.
Lon Eric Shaver: 7900 to 9000 ounces of gold.
Lon Eric Shaver: 64 to 69 million pounds of lead.
Lon Eric Shaver: And between 27 to 30 million pounds of zinc representing production increases of approximately 9% to 17% in silver.
Lon Eric Shaver: Between 8% and 22% and gold, 2% to 10% in led and between 16 and 29% increases in zinc compared to our ethical actual fiscal 2024 results.
Lon Eric Shaver: In terms of cost guidance, we are anticipating.
Lon Eric Shaver: Between 77, and $79 $7 per ton on a cash cost basis, which is in line with fiscal 'twenty 'twenty four is actual figure.
70 886 per ton.
Lon Eric Shaver: On an all-in sustaining basis, we're anticipating between... at a cost between $143.6 and $152.3 per ton. This is higher than last year's figure of $140.4 per ton as we look to increase spending at Ying this fiscal year. This is a good segue to discuss our growth projects, which we have previously disclosed and relate to our plan to enhance Ying's operational efficiencies by transitioning certain mining areas from cut and fill resuming to shrinkage stoping.
Lon Eric Shaver: On an all in sustaining basis were anticipating between cost between 143.6, and 150 to $3 per ton.
Lon Eric Shaver: This is higher than last year's figure of 140.
Lon Eric Shaver: 0.4 per ton as we look to increase spending at a ying this fiscal year.
Lon Eric Shaver: This is a good segue to discuss our growth projects, which we have previously disclosed and relates to our plan to enhancing operational efficiencies by transitioning certain mining areas from cut and fill resuming to shrinkage stoping as.
Lon Eric Shaver: As part of this initiative, we have budgeted $27 million in fiscal 2025 for ramp and tunnel development, aiming to improve underground access and material handling by replacing existing shafts with a new trackless system. By this weekend, we will have received 14 out of 20 new LHDs, so those are Load, Haul, Dump Shovels for ore handling underground, which will be implemented across Ying in a staged approach. In anticipation of the increase in mine productivity, we plan to add 1,500 tons per day of flotation capacity at the number 2 mil for a cost of $7.2 million.
As part of this initiative, we have budgeted $27 million in fiscal 2025 for ramp in tunnel development aiming to improve underground access and material handling by replacing existing chassis with a new trackless system.
Lon Eric Shaver: By this weekend, we will have received 14 out of 20, new <unk>. So those are load haul dump shovels for ore handling underground, which will be implemented across seeing in a staged approach.
Lon Eric Shaver: In anticipation of the increased in mine productivity, we plan to add a 1500 tonnes per day of flotation capacity at the number two mill.
Lon Eric Shaver: At a cost of $7 2 million. This expansion is expected to be completed later this year and will boost <unk> total production capacity to 4000 tonnes per day.
Lon Eric Shaver: This expansion is expected to be completed later this year and will boost Ying's total production capacity to 4,000 tons per day. Furthermore, we plan to install two more XRT ore sorters for less than a $2 million expenditure to address the expected increase in dilution from more shrinkage mining methods. Construction on the third tailing storage facility is on track for completion by the third quarter of 2024, with $10.8 million spent to date and remaining expenditures of $16 million. The total cost of construction is expected to be below the original estimate.
Lon Eric Shaver: Furthermore, we plan to install two more XR T ore sorters for less than a 2 million dollar expenditure to address the expected increase in dilution from more shrinkage mining method.
Lon Eric Shaver: Construction on the third tailing storage facilities on track for completion by the third quarter of 2024.
Lon Eric Shaver: With 10.8 million spent to date and remaining expenditures of $16 million and the total cost of construction is expected to be below the original estimate.
Lon Eric Shaver: We plan to release an updated Mineral Resource and Reserve Estimate and Mine Plan for Ying in June. The upcoming technical report will incorporate all work programs, including drilling, completed up to the end of 2023 and provide a life of mine plan reflecting all of these anticipated changes going forward. With regard to Kuan Ping, the satellite project north of Ying, we expect to receive all permits and licenses for this project in the third quarter of 2024 and have allocated $1 million for mine construction in the fiscal 2025 budget.
Lon Eric Shaver: We plan to release, an updated mineral resource and reserve estimate and mine plan for Yang in June.
Lon Eric Shaver: Coming technical report will incorporate all work programs, including drilling completed up to the end of 'twenty 23, and provide a life of mine plan, reflecting all of these anticipated changes going forward.
Lon Eric Shaver: With regards to quantifying the satellite project North of Yang we expect to receive all permits and licenses for this project in the third quarter of 2024 and have allocated a $1 million for mine construction.
Lon Eric Shaver: In the fiscal 2025 budget.
Lon Eric Shaver: Turning to the Adventist announcement On April 26th, Silvercorp and Adventist jointly announced the signing of a definitive arrangement agreement whereby Silvercorp would acquire Adventist by way of a plan of arrangement. This is an all-share transaction with each Adventist common share exchanged for 0.1015 shares of Silvercorp. This implies consideration of $0.54 per Adventist share based on yesterday's closing price for Silvercorp, which was a 28% premium to the company's pre-announcement closing price.
Lon Eric Shaver: Turning to the Adventist announcement on April 26 silver.
Lon Eric Shaver: Silver Corp, and Adventist jointly announced the signing of a definitive arrangement agreement whereby silver Corp would require adventists by way of a plan of arrangement. This.
Lon Eric Shaver: This is an all share transaction.
With each adventures common share exchange for 0.1015 shares of Silver Corp. This implies consideration of 54 cents per adventure share based on yesterday's closing price for Silver Corp.
Lon Eric Shaver: It was a 28% premium to the company's pre announcement a closing price.
Lon Eric Shaver: Key stakeholders of Adventus, including the company's directors and senior officers, Mr. Ross Beatty and Wheaton Precious Metals, who collectively represent approximately 20% of Adventus shares, have committed to voting in favor of the transaction at the special meeting set for late June. Furthermore, we've secured support from Salazar, who's expressed... welcome to us coming in as their new joint venture partner in the transaction. Along with the acquisition, Silvercorp and Adventus completed a private placement whereby we acquired approximately 67 million shares of Adventus at a price of $0.38 per share for aggregate proceeds of approximately $25.6 million. Silvercorp currently holds about 15% of Adventus.
Lon Eric Shaver: Key stakeholders and ventas, including the company's directors and senior officers.
Lon Eric Shaver: Mr SPD and Wheaton precious metals, who collectively represent approximately 20% of adventure shares have committed to voting in favor of the transaction at the special meeting set for late June.
Lon Eric Shaver: Furthermore, we secured support from Salazar who've expressed.
Lon Eric Shaver: Welcoming to us coming in as they're a new joint venture partner in the transaction.
Lon Eric Shaver: Along with the acquisition silver corporate event has completed a private placement whereby we acquired approximately 67 million shares of Adventists at a price of 38 cents per share for aggregate proceeds of approximately $25 6 million Silver Corp. Currently holds up at 15% of at Ventas.
Lon Eric Shaver: This placement was done to help settle debt owed to Trafigura and Altius, as well as to provide funding for pre-development activities at the El Domo project. More details are outlined in the news release, but I just wanted to make some key comments about this transaction. The Eldomo project adds meaningful resources to Silvercorp. It is a permitted project that we can apply our development skills and financial capacity to, and once built, Eldomo would make a meaningful contribution to our production profile and financial results while adding country and commodity diversification at the same time.
Lon Eric Shaver: This placement was done to help settle that oh to Trafigura and altice as well as to provide funding for pre development activities at the El Domo project.
Lon Eric Shaver: More details are outlined in the news release, but I just wanted to make some key comments about this transaction.
Lon Eric Shaver: El Domo project adds meaningful resources to Silver Corp.
It is a permitted project that we can apply our development skills and financial capacity to and.
Lon Eric Shaver: And once built El Donlin would make a meaningful contribution to our production profile and financial results, while adding country and commodity diversification at the same time.
Lon Eric Shaver: This acquisition takes us into the perspective and mining-framing jurisdiction of Ecuador, a country receptive to foreign investment and development. We believe the above factors should lead to a re-rating for the company, unlocking value for all shareholders. We look forward to providing the market with updates on the progress of the transaction as well as our plans for the El Domo project over the coming months. With that, Operator, I'd like to open the call to questions.
Lon Eric Shaver: This acquisition takes us into the perspective in mining friendly jurisdiction of Ecuador company receptive to foreign investment and development.
Lon Eric Shaver: We believe the above factors should lead to a re rating for the company unlocking value for all shareholders. We look forward to providing the market with updates on the progress of the transaction as well as our plans for the El <unk> project over the coming months.
Speaker Change: With that operator, I'd like to open the call for questions.
Operator: Thank you, sir. Ladies and gentlemen, we will now conduct a question and answer session. If you would like to ask a question, please press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star, then the number 2. If you are using a speakerphone, please lift the handset before pressing any key.
Speaker Change: Thank you Sir.
Speaker Change: Ladies and gentlemen, we will now conduct a question and answer session. If you would like to ask a question. Please press Star then the number one on your telephone keypad.
I'd like to withdraw your question. Please press Star then the number two.
Speaker Change: Denise.
You answered the question Danny please.
Operator: One moment, please for your first question. Your first question is from Joseph Aragor from Roth Capital Partners. Please ask your question.
Speaker Change: A moment please for your first question.
Speaker Change: Okay.
Speaker Change: Your first question is from Joseph irregular.
Speaker Change: Capital Partners. Please ask your question.
Joseph George Reagor: Thanks for taking my part. Can you hear me all right? Yes, yes.
Speaker Change: Hey, Thanks for taking my questions.
Lon Eric Shaver: Yep, yeah, hi Joe, thanks.
Speaker Change: Can you hear me alright, yes.
Jeff: Yeah, Hi, Jeff Thanks.
Joseph George Reagor: So, firstly, in the early part of your prepared remarks, I didn't catch it perfectly, but there was a comment about, I guess, a repatriation tax on taking some cash out of China. Can you walk us through that comment? I apologize if I didn't hear it correctly.
Jeff: So.
Jeff: Firstly.
Speaker Change: Your early part of your prepared remarks, I didn't catch appropriate perfectly, but there was a comment about I guess, a repatriation tax on taking some cash out of China.
Speaker Change: Walk us through that that comment and I apologize if I didnt hear it correctly.
Lon Eric Shaver: Yeah, this is a standard tax. It's a 10% withholding tax that applies to dividends that are paid out of China, which applies to us and applies to other countries, and foreign entities that are shareholders in a domestic corporation in China.
Speaker Change: Yeah. This is a standard tax it's a 10% withholding tax that applies to dividends.
That are paid out of China, which applies to us and applies to other.
Speaker Change: Foreign entities that are shareholders in domestic corporation in China.
Joseph George Reagor: Okay. So on that note, of the current cash balance the company has, how much is held in China? Because obviously, you'd have to repatriate a good portion of that to advance the Eldomo project.
Speaker Change: Okay.
Speaker Change: So on that note.
Speaker Change: The current cash balance the company has how much is held in China.
Because obviously you'd have to repatriate a good portion of that to advance the El Domo project.
Lon Eric Shaver: It's roughly a 50-50 split between what's held in China at the operations and our subsidiaries as well as outside of China.
Speaker Change: Yeah, it's roughly a 50 50 split between what's happening in China at the operations in our subsidiaries as well as outside of China.
Joseph George Reagor: Okay, all right, that's helpful. And then to the big picture question, there's been news not involving you guys, but other companies, mining companies having issues with taking Chinese investments, the Canadian government not approving it, not necessarily denying it, but not approving it. For anybody who's Canadian listed, do you see any risk for you guys with the, you know, differences between the Chinese government and the Canadian government right now?
Speaker Change: Okay, Alright, that's helpful.
Speaker Change: And then kind of a big picture question.
Speaker Change: There's been news not involving you guys, but other companies mining companies, having issues with taking Chinese investments Canadian government not approving it.
Speaker Change:
Speaker Change: Not necessarily denying it but its not approving it.
For anybody Who's Canadian listed do you see any risk for you guys with that you know because of the.
Speaker Change: Differences between Chinese government and Canadian government right now.
Lon Eric Shaver: Well, we don't see any risk because, the way the rules are defined, us as a Canadian company that is a majority shareholder in a Chinese operation, but with no Chinese ownership or government influence, you know we don't meet the criteria for a review, so we're not anticipating any impacts. Okay, thanks. I just...
Speaker Change: Well, we don't see any risk because as the way the rules are to find us as a Canadian company a.
Speaker Change: Which is the majority shareholder and a Chinese operation, but with no Chinese ownership or government influence you know we don't meet the criteria for a review so we're not anticipating any impacts from that.
Joseph George Reagor: Okay, thanks. I just wanted you to clarify that for all of us. All right.
Speaker Change: Okay. Thanks, I just wanted to clarify that for all of us.
Speaker Change: I'll pass it on.
Joe: Okay. Thanks, Joe.
Operator: Once again, please press star 1 should you wish to ask a question. Your next question is from Felix Shafigullin from 8 Capital. Please ask your question.
Speaker Change: Once again, please press star one should you wish to ask a question. Your next question is from Jackie Bohlen from <unk> capital. Please ask your question.
Felix Shafigullin: Hi Lon, thanks for taking my question. Just a quick question on the outlook. So if we compare it to last year, right, I think we're seeing, in the outlook that you provided, lower cash costs on yin. And I think, if I'm correct, Well, yeah, so let's just stick to Ying then. So it's lower cash costs on Ying compared to last year, so fiscal 2024. What's behind this lower cost estimate for Ying for next year?
Jackie Bohlen: Hi, Thanks for taking my question.
Felix: Hi, Felix.
Jackie Bohlen: Just a quick question on on the outlook. So if we compare it to last year right I think we're seeing kind of the.
Speaker Change: The outlook that you provided we're seeing lower cash costs on Yang.
Speaker Change: And I think if I'm correct.
Speaker Change: Well, yes, so, let's just stick to condense. It so it's lower cash costs are in yen compared to last year, So fiscal 2024.
Speaker Change: What's behind this lower cost estimates are.
Speaker Change: Frigging for next year.
Lon Eric Shaver: Well, a lot of that will be driven by looking at the tonnages that we're anticipating. We're looking at a growth in tonnage out of yin. And so from a higher tonnage, spreading cost allocation across, that's what's driving the lower cost per ton.
Speaker Change: Well a lot of that will be driven by looking at the tonnages that were anticipating where we're looking at our growth in tonnage out of Yang and so from a higher tonnage spreading fixed cost allocation across that's what's driving the lower.
Speaker Change: <unk> costs on a per ton basis.
Felix Shafigullin: So just increasing the throughput then? Yes. Okay. Okay. All right. All right. That makes sense. Thanks. Okay, thanks.
Speaker Change: So there's just increasing the throughput there.
Speaker Change: Yes.
Speaker Change: Okay, Okay, alright, alright that makes sense. Thanks, okay.
Sheila: Okay. Thanks Sheila.
Operator: Once again, please press star 1 should you wish to ask a question. There are no further questions at this time. I will now turn the conference back over to Lon Shaver for any closing remarks.
Speaker Change: Once again, please nektar wants you to Mr asked the question.
Speaker Change: There are no further questions at this time I will now turn the conference.
Speaker Change: This back over to Lon Shaver for any closing remarks.
Lon Eric Shaver: That's great. Thank you, Operator. I'd like to thank everyone for tuning in today. This is the wrap-up for the call. As always, if anyone has any additional questions... Please don't hesitate to call or email us, and we'll be happy to answer those questions in due course. Have a great day.
That's great. Thank you operator.
Lon Eric Shaver: I'd like to thank everyone for tuning in today are this is a the wrap up for the call as always if anyone has any additional questions.
Lon Eric Shaver: Please don't hesitate to call or email us and well be happy to answer those questions in due course I have a great day.
Operator: Thank you. Ladies and gentlemen, the conference has now ended. You may disconnect your lines. Thank you for participating, and have a wonderful day.
Speaker Change: Thank you ladies and gentlemen, the conference has now ended you may disconnect. Your lines. Thank you for participating and have a wonderful day.
Speaker Change: Okay.