Q2 2024 SSR Mining Inc Earnings Call

Hello everyone and welcome to SSR Mining's 2nd Quarter 2024 Financial Results Conference Call.

Operator: 2024 Financial Results Conference Call. Please be advised that this call is being recorded. Should anyone need assistance during the conference call, they may signal an operator by pressing Star, then Zero.

Please be advised that this call is being recorded.

Should anyone need assistance during the conference call, they may signal an operator by pressing star then zero. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining. Please go ahead.

Operator: At this time, we're opening remarks and introductions.

Operator: for Financial Results Conference Call, please be advised that this call is being recorded. Should anyone need assistance during the conference call, they may signal an operator by pressing star, then zero. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining. Please go ahead.

Alex Hunchak: I would like to turn the call over to Alex Hunchak from SSR Mining.

Operator: Please go ahead.

Alex Hunchak: Thank you, operator, and hello everyone. Thank you for joining today's conference call, during which will provide an update on the chocolate incident as well as a review of our second quarter financial results. Our convoluted financial statements have been presented in accordance with US GAAP. These financial statements have been filed on EDGAR, Cedar, CASX and are also available on our website. To accompany our call, there is an online webcast, and you will find the information to access the webcast in our news release. Please note that all figures discussed during the call are U.S. dollars unless otherwise indicated.

Alex Hunchak: Thank you, operator, and hello, everyone. Thank you for joining today's conference call, during which we'll provide an update on the Topler incident, as well as a review of our second quarter financial results. Our consolidated financial statements have been presented in accordance with U.S. GAAP. These financial statements have been filed on EDGAR, CDAR, CASX, and are also available on our website. To accompany our call, there is an online webcast, and you will find the information to access the webcast in our news release written in conjunction with this call.

Alex Hunchak: Thank you, Operator, and hello, everyone. Thank you for joining today's conference call, during which we'll provide an update on the Tokler incident, as well as a review of our second quarter financial results.

Speaker Change: Our consultative financial statements have been presented in accordance with U.S. GAAP. These financial statements have been filed on EDGAR, CDAR, the ASX, and are also available on our website. To accompany our call, there is an online webcast, and you will find the information to access the webcast in our news release related to this call.

Alex Hunchak: Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated. Today's discussion will include four forecasts. So please read the disclosures and the relevant documents. Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides. Please see our press release for information about the Comparable Gap Measure. Rod Antal, Executive Chairman, will be joined on today's call by Michael Sparks, Chief Financial Officer, and Bill MacNevin, EVP, Operations and Sustainability. I'll now turn the line over to Rod.

Speaker Change: Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated.

Alex Hunchak: Today's discussion will include poll living statements. Please read those closures and develop in documents. Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides. Please do our press release for information about the comparable gap measures.

Speaker Change: Today's discussion will include four looking statements, so please read the disclosures and the relevant documents. Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides. Please see our press release for information about the comparable GAAP measures.

Alex Hunchak: Bob Antel, Executive Chairman, will be joined on today's call by Michael Sparks, Chief Financial Officer, and Bill McNevin, EVP Operations and Sustainability.

Speaker Change: Rod Antal, Executive Chairman, will be joined on today's call by Michael Sparks, Chief Financial Officer, and Bill MacNevin, EVP, Operations and Sustainability. I'll now turn the line over to Rod.

Rod Antal: I'll now say online over to Rob.

Rodney P. Antal: Right, and thanks Alex. I will start with an update on Chirpler, summarizing where the site currently stands, and then we'll provide an update on the second quarter results from Marigold. CB, and TUNA, with all three operations performing well against plan to this point in the year. At Chirpa, there have been four priorities in our ongoing efforts since the incident. In summary, these are, One, the recovery of our missing colleagues and the containment of the incident.

Rod Antal: Right, and thanks, Alex. I will start with an update on chirping, summarizing where the site currently stands, and then we'll provide an update on the second quarter results from Marigold, CB, and Tuna, with all three operations performing well against playing to this point in the year. At Sherpa, there are four priorities in our ongoing efforts since the incident.

Rodney P. Antal: Right, and thanks Alex.

Rodney P. Antal: I will start with an update on Chirpler, summarising where the site currently stands and then we'll provide an update on the second quarter results from Marigold.

Speaker Change: CB, and TUNA with all three operations performing well against plan to this point in the year.

Rodney P. Antal: Treaty, the remediation of the site, and lastly, for the incident review and preparing for the next step. With respect to the recovery of our missing colleagues, the nine individuals who were lost as a result of the tragic incident have been recovered.

Speaker Change: At CHRPA, there have been four priorities in our ongoing efforts since the incident.

Rod Antal: In summary, these are one, the recovery of our mission colleagues, through the containment of the incident; three, the remediation of the site; and lastly, for the incident review and preparing for the next steps. With respect to the recovery of our mission colleagues, the nine individuals who are lost as a result of the tragic incident have been recovered, and we want to thank all those who have worked tirelessly to locate and return our colleagues to their families. We are continuing to support the families, our employees, and the community members impacted by the incident. And today, we have retained a full complement of salary staff at Sherpa.

Speaker Change: In summary, these are

Speaker Change: 1. The Recovery of our Missing Colleagues

Speaker Change: to the containment of the incident.

Speaker Change: 3. The remediation of the site. And lastly, 4. The incident review and preparing for next steps.

Speaker Change: With respect to the recovery of our missing colleagues, the nine individuals who were lost as a result of the tragic incident have been recovered and we want to thank all those who have worked tirelessly to locate and return our colleagues to their families.

Rodney P. Antal: And we want to thank all those who have worked tirelessly to locate and return our colleagues to their families. We're continuing to support the families, our employees, and the community members impacted by the incident. And to date, we have retained a full complement of Salaried Staff at Sherpa. Secondly, all of the planned containment infrastructure, including a grout curtain, copper dam, and buttress, as well as pumping systems and the Silberle Creek diversion, have been successfully installed.

Speaker Change: We are continuing to support the families, our employees, and the community members impacted by the incident, and to date, we have retained a full complement of salary staff at Sherpa.

Rod Antal: Secondly, all of the playing containment infrastructure, including a ground curtain, confidem, and buttress, as well as pumping systems and the suburbally-creek diversion, have been successfully installed. Public statements from Turkish government officials continue to reiterate that there has been no record of all contamination to local soil, water, or air in sampling locations.

Speaker Change: Secondly, all of the planned containment infrastructure, including a grout curtain, cofferdam, and buttress, as well as pumping systems and the Silberle Creek diversion, have been successfully installed.

Rodney P. Antal: Public statements from Turkish government officials continue to reiterate that there has been no recordable contamination of local soil, water, or air in sampling locations. Third, with respect to remediation, we continue to prioritize the cleanup of the Suburley Valley and remain on track to have all the displaced heap leach material removed by the end of the third quarter. Of the total displaced material, we have moved more than 70% into temporary storage locations. More importantly, this includes more than 90% of the material from the Siberli Valley.

Speaker Change: Public statements from Turkish government officials continue to reiterate that there has been no recordable contamination to local soil, water or air in sampling locations.

Rod Antal: Third, with respect to remediation, we continue to prioritise the cleanup of the suburbally valley and remain on track to have all the displaced heap-leach material removed by the end of the recorder. Of the total displaced material, we have moved more than 70% into temporary storage locations. More importantly, this includes more than 90% of the material from the Suburly Valley. The total remediation spend in the second quarter was $55 million against our estimated total remediation spend at $250 to $300 million. We are continuing discussions with the Turkish government officials around the remediation plan, including the approval and construction of the East Storage Facility.

Speaker Change: Third, with respect to remediation, we continue to prioritise the clean-up of the Suburley Valley and remain on track to have all the displaced heap leach material removed by the end of the third quarter.

Speaker Change: of the total displaced material, we have moved more than 70% into temporary storage locations.

Speaker Change: More importantly, this includes more than 90% of the material from the Siberli Valley.

Rodney P. Antal: The total remediation spend in the second quarter was $55 million against our estimated total remediation spend of $250 to $300 million. We are continuing discussions with Turkish government officials around the remediation plan, including the approval and construction of the east storage facility. As we look ahead, it's important to note that the investigations into the cause of the Cherbler Incident continue, and we are cooperating fully with the relevant authorities in Turkey. We have commissioned independent third parties to review the design. Construction and operation of the Heathledge Patch

Speaker Change: The total remediation spend in the second quarter is $55 million against our estimated total remediation spend of $250 to $300 million.

Speaker Change: We are continuing discussions with the Turkish government officials around the remediation plan, including the approval and construction of the e-storage facility.

Rod Antal: As we look ahead, it's important to note that the investigations into the calls of the East Storage continue, and we are cooperating fully with the relevant authorities in Turkey. We have commissioned independent third parties to review the design, construction, and operation of the East Storage Facility. Today, these reviews have not identified any material non-conformance with the construction or operation of the East Storage Facility, relative to third-party design parameters. And, simultaneously, we continue to work closely with all the relevant authorities to advance the permits required to restart the church alone. These include the restatement of the church at EIA and operating permits.

Speaker Change: As we look ahead, it's important to note that the investigations into the cause of the Cherbourne incident continue, and we are cooperating fully with the relevant authorities in Turkey.

Speaker Change: We have commissioned independent third parties to review the design, construction, and operation of the Heath Leach Pad.

Rodney P. Antal: To date, these reviews have not identified any material non-conformance with the construction or operation of the heap leach pad relative to third-party design parameters. Simultaneously, we continue to work closely with all the relevant authorities to advance the permits required to restart the Chirp Lamone. These include the reinstatement of the Turplet EIA and operating permit. If and when the permits are granted, we would anticipate commencing sulfide plant operations through the processing of existing ore stockpiles on site. These stockpiles contain more than 700,000 ounces of gold.

Speaker Change: To date, these reviews have not identified any material non-conformance with the construction or operation of the heap leach pad relative to third-party design parameters.

Speaker Change: Simultaneously, we continue to work closely with all the relevant authorities to advance the permits required to restart the Churchill Mine.

Speaker Change: These include the reinstatement of the Chirpler EIA and operating permits.

Rod Antal: If, when the permits are granted, we would anticipate commencing self-wide plan operations through the processing for the existing or stockpiles on site. The stockpiles contain more than 700,000 ounces of gold.

Speaker Change: If and when the permits are granted, we would anticipate commencing sulfide plant operations through the processing of existing ore stockpiles on site.

Speaker Change: These stockpiles contain more than 700,000 ounces of gold.

Rod Antal: Certainly, there is a lot of work ahead for us to jump on as we continue to advance the remediation efforts. However, we have made meaningful progress today and remain fully committed to a restart of the operation and want to receive all the necessary permits.

Rodney P. Antal: Certainly, there is a lot of work ahead for us at Churpline as we continue to advance the remediation efforts. However, we have made meaningful progress to date and remain fully committed to a restart of the operation once we receive all the necessary permits. And now, with that, we'll move on to slide four, where Michael will discuss the second quarter results.

Speaker Change: Certainly there is a lot of work ahead of for us to chirp on as we continue to advance the remediation efforts.

Speaker Change: However, we have made meaningful progress to date and remain fully committed to a restart of the operation once we receive all the necessary permits.

Michael Sparks: And now, with that, we'll move on to the slide for where Markle will discuss the second quarter results.

Speaker Change: And now with that, we'll move on to slide four, where Michael will discuss the second quarter results.

Michael Sparks: Thank you, Rod, and good afternoon, everyone. Second quarter of 2024 production was 76,000 gold equivalent ounces at all-in sustaining costs of $2,116 per ounce, which includes cash, care, and maintenance costs and credit triplers representing approximately $245 per ounce. For the first half, Mayor Gold, CD, and Pune combined to produce 156,000 gold equivalent ounces, in line with our continued expectations for a second half-weighted production profile, and each asset remains well on track for their full-year production and cost guidance. We've finished the quarter with a cash position of $358 million, including the aforementioned $55 million in remediation costs and another $17 million in cash, care, and maintenance costs, the triplers.

Michael Sparks: Thank you, Rod, and good afternoon, everyone. Second quarter 2024 production was 76,000 gold equivalent ounces at all anticipating costs of $2,116 per ounce, which includes cash, care, and maintenance costs, and credit chertler, representing approximately $245 per ounce. For the first half, Marigold, Seabee, and Puna combined to produce 156,000 gold equivalent ounces, in line with our continued expectations for a second half weighted production profile, and each asset remains well on track for its full year production and cost guidance.

Michael Sparks: Thank you, Rod, and good afternoon, everyone.

Michael Sparks: Second quarter of 2024 production was 76,000 gold equivalent ounces at all anticipating costs of $2,116 per ounce, which includes cash, care, and maintenance costs incurred at Chertler representing approximately $245 per ounce.

Michael Sparks: For the first half, Marigold, Seabee, and Puna combined to produce 156,000 gold equivalent ounces, in line with our continued expectations for a second half-weighted production profile, and each asset remains well on track for their full year production and cost guidance.

Michael Sparks: We finished the quarter with a cash position of $358 million, inclusive of the aforementioned $55 million in remediation costs and another $17 million in cash care and maintenance costs at Chirpler. With an undone revolving credit facility and an outlook for improved production and pre-castle generation in the second half, we remain in a strong position financially. During the quarter, we continued to advance brownstone exploration programs at Marigold, Seabee, and Puna, which Bill will discuss later. Additionally, site establishment and engineering activities at Hawthorne Madden continued to progress as we move towards a construction decision for the project.

Michael Sparks: We finished the quarter with a cash position of $358 million, inclusive of the aforementioned $55 million in remediation costs, and another $17 million in cash, care, and maintenance costs at Chirpler.

Michael Sparks: For the non-drawn revolving private facility, and an outlook for improved production and pre-cashable generation in the second half, we remain in a strong position financially. During the quarter, we continue to advance grounds of exploration programs at Marigold, EB, and Pune, which Bill will discuss later.

Michael Sparks: With an undone revolving credit facility and an outlook for improved production and pre-castle generation in the second half, we remain in a strong position financially.

Speaker Change: During the quarter, we continue to advance Brownsville's exploration programs at Marigold, Beebe, and Puna, which Bill will discuss later. Additionally, site establishment and engineering activities at Hog Madden continue to progress as we move towards a construction decision for the project.

Michael Sparks: Additionally, site establishment and engineering activities at Hot Madden continue to progress as we move towards a construction decision for the project.

Michael Sparks: On to slide five for a brief look at the financial results. We recorded a trivable net income of five cents per share in the second quarter, while adjusted net income per share was four cents, reflecting the exclusion of the mark to market gain on our portfolio of marketable securities.

Michael Sparks: On to slide five for a brief look at the financial results. We recorded attributable net income of $0.05 per share in the second quarter, while adjusted net income per share was $0.04, reflecting the exclusion of the mark-to-market gain on our portfolio of marketable securities. As a reminder, in the first quarter of 2024, we booked a $250 million remediation expense for costs we expect to incur at Chirpler, and the impact of this expense was fully reflected in the first quarter income statement.

William MacNevin: On to slide 5 for a brief look at the financial results.

William MacNevin: We recorded attributable net income of $0.05 per share in the second quarter, while adjusted net income per share was $0.04, reflecting the exclusion of the mark-to-market gain on our portfolio of marketable securities.

Michael Sparks: As a reminder, in the first quarter of 2024, we booked a $250 million remediation expense for costs we expect to incur at turpler, and the impact of this expense was fully reflected in the first quarter income statement. Included remediation spend at Turpler, second quarter cash generated by offering activities was negative $78 million, while free cash flow was negative $116 million. As noted, our total cash position remains strong at $358 million. With an additional undrawn revolving credit facility and strong second half, free cash flow expected from the other operation, we remain well positioned to manage remediation costs at Turpler as well as our reinvestment needs across the business.

Speaker Change: As a reminder, in the first quarter of 2024, we booked a $250 million remediation expense for costs we expect to incur at Chirpler, and the impact of this expense was fully reflected in first quarter income statement.

Michael Sparks: Included in the mediation spend at Turpler, second quarter cash generated by operating activities was negative $78 million, while free cash flow was negative $116 million. As noted, our total cash position remains strong at $358 million. With an additional undrawn revolving credit facility and strong second half free cash flow expected from the other operations, we remain well-positioned to manage remediation costs at Turkler, as well as our reinvestment needs across the business. Now on to slide 7, where Bill will discuss the operation starting with Marigold. Thanks, Michael.

Speaker Change: Included in the mediation spend at Turkler, second quarter cash generated by operating activities was negative $78 million, while free cash flow was negative $116 million. As noted, our total cash position remained strong at $358 million.

Speaker Change: With an additional undrawn revolving credit facility and strong second half free cash flow expected from the other operations, we remain well positioned to manage remediation costs at Chirpler as well as our reinvestment needs across the business. Now on to slide 7 where Bill will discuss the operations starting with Marigold.

William MacNevin: Marigold's second quarter production of 26,000 ounces was in line with expectations. The 2024 mine plan called for the second quarter to feature the lowest production and the highest cost of the year, reflecting focus on waste stripping at Red Dot in the first half of 2024 and a catch up in sustaining capital spend to bring us back on track for the year-to-date spend. Is the first half of 2024 now complete?

Bill McNevin: Now on to slide seven, where Bill will discuss the operation, starting with Maribel.

Bill McNevin: Thanks, Michael. Marigold, second quarter production of 26,000 ounces was in line with expectation. The 2024 mine plan called for the second quarter to feature the lowest production and highest cost of the year.

William MacNevin: Thanks Michael. Marigold's second quarter production of 26,000 ounces was in line with expectation.

William MacNevin: The 2024 mine plan called for the second quarter to feature the lowest production and highest cost of the year.

Bill McNevin: We're afraid to focus on waste stripping at Reddaw in the first half of 2024 and to catch up in standing capital spend to bring us back on track for the year-to-date spent. With the first half now complete, we expect production and costs to improve meaningfully in the second half of the year, particularly in the fourth quarter. Marigold remains on track for its full-year production and cost guidance.

William MacNevin: reflecting focus on waste stripping at Red Dot in the first half of 2024 and a catch-up in sustaining capital spend to bring us back on track for the year-to-date spend.

William MacNevin: With the first half now complete, we expect production and costs to improve meaningfully in the second half of the year, particularly in the fourth quarter.

William MacNevin: Marigold remains on track for its full year production in Cost Gardens.

Bill McNevin: Grantsville growth activity at Buffalo Valley and other near-mine targets advanced during the quarter as we look to continue to replace mine depletion and potentially further extend Marigold's operating life.

William MacNevin: Brownfield growth activity at Buffalo Valley and other near mine targets advanced during the quarter as we look to continue to replace mine depletion and potentially further extend Marigold's operating life.

Bill McNevin: Now on to CB. At CB, second quarter production was 17,000 ounces at an ASIC of 1,626 per ounce. Production and costs were in line with expectations as great mine and process were expected to average between five and six grams per tonne for the remainder of 2024.

William MacNevin: We expect production and cost to improve meaningfully in the second half of the year, particularly in the fourth quarter. Marigold remains on track for its full year production in Costco. Brownfield growth activity at Buffalo Valley and other near mine targets advanced during the quarter as we look to continue to replace mine depletion and potentially further extend Marigold's operating life. Now on to TV.

William MacNevin: At Seabee, second quarter production was 17,000 ounces at an ASIC of 1626 per ounce. Production and costs were in line with expectations as grade mined and processed are expected to average between five and six grams per tonne for the remainder of 2024. May be Remember some tracks before you go.

Speaker Change: Now on to the TV.

Speaker Change: At Seabee, second quarter production was 17,000 ounces and an ASIC of 1626 per ounce.

Speaker Change: Production and costs were in line with expectations as grade mined and processed are expected to average between 5 and 6 grams per tonne for the remainder of 2024.

Bill McNevin: CB remains on track for full-year guidance. Exploration activity at CB continues to focus on near-mine extensions to existing underground mineralisation, as well as the continued advancement of bulky and bulky west targets.

Speaker Change: Baby Reminds on Tractors for Foliage Gardens.

William MacNevin: Exploration activity at CB continues to focus on near-mine extensions to existing underground mineralisation, as well as the continued advancement of Porky and Porky West. The bulky targets represent a potential mine life extension opportunity, and the CB team is aggressively advancing technical studies to better delineate the opportunity. Now on Burna.

Speaker Change: Exploration activity at CB continues to focus on near mine extensions to existing underground mineralisation, as well as the continued advancement of Porky and Porky West targets.

Bill McNevin: The bulky targets represent a potential mine life extension opportunity, and the CB team is aggressively advancing technical studies better to alleviate the opportunity.

Speaker Change: The bulky targets represent a potential mine life extension opportunity, and the CB team are aggressively advancing technical studies to better delineate the opportunity.

Bill McNevin: Now on to Boona. Boona produced 2.7 million ounces of silver in the second quarter. A strong bounce back from softer production in the first quarter due to heavy rain. ASIC of $15.19 per ounce, in the second quarter, demonstrate to the significant free cash plate of margins in the current silver price environment. The first half production of 4.6 million ounces of silver, and the ASIC of $15.36 per ounce.

William MacNevin: We're going to produce 2.7 million ounces of silver in the second quarter, a strong bounce back from softer production in the first quarter due to heavy rain. ASIC of $15.90 per ounce in the second quarter demonstrated significant free cash flow from margins in the current silver price environment. First half production of 4.6 million ounces of silver at $15.36 per ounce remains well on track for full-year guidance. In addition, exploration and technical work continues to evaluate opportunities to extend operations at Puna through potential extensions at Chinchillas and continued advancement of the Cordovairus target through near mine drilling. Now we'll turn back to Rod for closing remarks. All right, thanks.

Speaker Change: Now on Spooner.

Speaker Change: Luna produced 2.7 million ounces of silver in the second quarter, a strong bounce back from softer production in the first quarter due to heavy rains.

Speaker Change: ASIC of $15.90 per ounce in the second quarter demonstrated significant free cash flow of margins in the current silver price environment.

Speaker Change: The first half production of 4.6 million ounces of silver at $15.36 per ounce.

Bill McNevin: Furniture remains well on track for full-year guides.

Bill McNevin: In addition, expiration and technical work continues to evaluate opportunities to extend operations of PUNA through potential extensions that can cheer us and continue the advancement of the court of Harris targets through near mind.

Speaker Change: remains well on track for full year guidance.

Speaker Change: In addition, exploration and technical work continues to evaluate opportunities to extend operations at Poona, through potential extensions at Chinchillas, and continued advancement of the Cote d'Ivoire target through near mine drilling.

Rod Antal: Now we'll turn back to Rod's opposing remarks.

Rodney P. Antal: All right, thanks, Phil and Michael. As you can see, our second quarter results were well aligned to our expectations, with Marigold, CB, and Puna all on track to meet full new guidance. We will continue to diligently advance remediation efforts at Chirpline and remain fully committed to returning to operations in 2 years. So with that, I will turn the call over to the operator for any questions you may have.

Rod Antal: Thanks, Bill and Michael. As you can see, our second quarter results were well aligned to our expectations. With Marigold, CB, and PUNA all on track to meet full-year guidance.

Speaker Change: Now we'll turn back to Rod for closing remarks. Thanks Bill and Michael.

Rodney P. Antal: As you can see, our second quarter results were well aligned to our expectations, with Marigold, CB and Pooner all on track to meet full year guidance.

Rod Antal: We'll continue to diligently advance remediation efforts to Japan and remain fully committed to returning to operations until again.

Speaker Change: We will continue to diligently advance remediation efforts at Chirpline and remain fully committed to returning to operations in 3rd year.

Operator: So, with that, I will turn the call over to the operator for any questions you may have.

Speaker Change: So with that, I will turn the call over to the operator for any questions you may have.

Operator: Thank you, Mr. Antao. We will now begin the question and answer question. So during the question, Q, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handsets before pressing any keys. To withdraw your question, please press star, then two.

Operator: Thank you, Mr. Antal. We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2. The first question comes from Lawson Rinder with Bank of America. Please go ahead.

Speaker Change: Thank you Mr. Antal. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2.

Lawson Winder: The first question comes from Lawson Lenders with Bank of America.

Lawson Winder: Please go ahead. Thanks, operator, and hello, Rod and Teeth. Thanks for the update, and my condolences to your colleagues and their families.

Speaker Change: The first question comes from Lawson Rinder with Bank of America. Please go ahead.

Lawson Rinder: Thanks, Operator. And hello, Rod and T. Thanks for the update. And my condolences to you, your colleagues, and their families. I just wanted to, excuse me, ask about a statement in the release where you said that you're not able to estimate when and under what conditions the mine will resume at Chirpler, and implied in that is that the mine will restart. Have you received indications from Turkish authorities suggesting that the mine will start at some unknown time and under some unknown conditions?

Speaker Change: Thanks, Operator, and hello, Rod and T. Thanks for the update, and my condolences to your colleagues and their families. I just wanted to ask about a statement.

Rod Antal: I just wanted to ask about a statement in the release where you said that you're not able to estimate when and under what conditions the mind will resume at Turplor. And implied in that is that the mind will restart. Have you received indications from Turkish authority suggesting that the mind will start at some unknown time and under some unknown conditions?

Speaker Change: in the release.

Lawson Rinder: where you said that you're not able to estimate when and under what conditions the mine will resume at Chirpler and implied in that is that the mine will restart. Have you have you received indications from Turkish authorities suggesting that the mine you know will start at some unknown time and under some unknown conditions?

Rod Antal: Yes. As you can appreciate, I mean the focus for us has been on the priorities, as I outlined. And moving diligently through each one of those sequences is really important to put us in the right environment for us to gain those approvals for restart. So those discussions are underway. Obviously, I'm not going to provide too much more color or comment on those, but we are actively discussing the work for plan for Turplor as we move through each one of those stages. Okay, all right. Well, thanks. That's helpful, right?

Rodney P. Antal: As you can appreciate, the focus for us has been on the priorities I outlined, and moving diligently through each one of those sequences is really important to put us in the right environment for us to gain those approvals for restart. So those discussions are underway. Obviously, I'm not going to provide too much more color or comment on those, but we are actively discussing the work forward plan for Chirpler as we move through each one of those stages.

Speaker Change: As you can appreciate, the focus for us has been on the priorities as I outlined.

Speaker Change: Moving diligently through each one of those sequences is really important.

Speaker Change: put us in in the right environment for us to

Speaker Change: gained those approvals for restart so

Speaker Change: We are actively discussing the work forward plan for Chirpler as we move through each one of those stages.

Lawson Rinder: Okay. All right. Well, thanks. That's helpful, Rod.

Rod Antal: And then can I also ask about some of the exploration you guys have touched on in your presentation and then in the results when you look to your end. So, two questions on the reserve update with the existing operations: do you anticipate replacing reserves based on drilling today? And do you anticipate any change to the gold price assumption on which those reserves are based? As you remember last year, Lawson, we actually did a pretty big comprehensive update to all of our technical reports. And I think it was sort of lost to a little issue with the obviously the typical incident.

Lawson Rinder: And then could I also ask about some of the exploration you guys have touched on in your presentation and in the results. When you look to year end, so two questions on the reserve update with the existing operations: do you anticipate replacing reserves based on drilling to date? And do you anticipate any change to the gold price assumption on which those reserves are based?

Speaker Change: And then, could I also ask about some of the exploration you guys have touched on in your presentation and in the results. When you look to year end, so two questions on the reserve update.

Speaker Change: With the existing operations, do you anticipate replacing reserves based on drilling to date? And do you anticipate any change to the gold price assumption on which those reserves are based?

Rodney P. Antal: As you remember, Lawson, last year, we actually did a pretty big, comprehensive update to all of our technical reports, and I think it was sort of lost earlier this year with the obviously Churchill incident, and that was a comprehensive refresh across each one of the operations. The exploration this year is obviously targeted at those targets, particularly at both Puna and Seabee to extend mine life, but that work program is still active, so it's a bit early to tell exactly what the results will be or indeed the actual timing of those results to do any more updates to what we already did pretty comprehensively during 2023.

Speaker Change: As you remember last year, Lawson, we actually did a pretty big, comprehensive update to all of our...

Lawson Rinder: technical reports and I think it was sort of lost earlier this year with the obviously the Churchill incident.

Rod Antal: And that was a comprehensive refresh across each one of the operations. The exploration this year is obviously targeted on those targets to particularly at both Puna and CV to extend my life. But that work program is still active. So, it's a bit early to tell exactly what the result will be. Or indeed, the actual timing of those results to do any more updates to what we already did pretty comprehensively during 2023. So, that's the work plan at the moment. We'll obviously release the exploration results as and when they're available, or meaningful exploration results as and when they're available.

Speaker Change: and that was a comprehensive refresh.

Speaker Change: Particularly at

Speaker Change: and CB to extend mine life but that work program is still active so it's a bit early to tell exactly what the results will be or indeed the actual timing of those results to do any more updates to what we already did pretty comprehensively during 2023.

Rodney P. Antal: So that's the work plan at the moment; we'll obviously release exploration results as and when they're available, or meaningful exploration results as and when they're available. But the real key priority right now is ICB and PUNA.

Rod Antal: But the real key priority right now is CV to Puna.

Rod Antal: And then on the gold price assumption, is there any intention to change that for the year and reserve statements or just keep that in line with the technical reports? Look, we haven't even got to that yet. We might have assessed the gold price until the end of the year. But I think from memory, when we did the take reports for this year, early this year, we were well in line with what our peer group was doing.

Rodney P. Antal: And then on the gold price assumption, is there any intention to change that for the year-end reserve statements or just keep that in line with the technical report? Look, we haven't even got to that yet. We won't even...

Speaker Change: And then on the gold price assumption, is there any intention to change that for the year-end reserve statements or just keep that in line with the technical reports?

Rodney P. Antal: Look, we haven't even got to that yet. We won't even assess the gold price until the end of the year. But from memory, when we did the tech reports for this year, early this year, we were well in line with what our peer group was doing.

Speaker Change: For this year, early this year, we were well in line with what our peer group was doing.

Operator: This concludes the question and answer session.

Operator: This concludes the question and answer session. Right. Appreciate it.

Rodney P. Antal: Right. I appreciate it. Thank you, operator. And thank you, Paul, for joining us today. And we'll talk again soon. Thank you. This brings us to close.

Rod Antal: Thank you, operator, and thank you for joining us today, and we'll talk again. Thank you.

Operator: This brings to close today's conference call. You may disconnect your lines.

Operator: This brings to close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: Thank you for participating, and have a pleasant day. Thank you.

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