Q2 2024 Centerra Gold Inc Earnings Call

Unknown Executive: Good morning, everyone. Thank you for standing by.

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Unknown Executive: This is the conference operator. Welcome to the Centerra Gold second quarter 2021 conference call. As a reminder, all participants are in an innocent only mode.

Operator: This is the conference operator. Welcome to the Centerra Gold second quarter 2024 conference call. As a reminder, all participants are in a listen-only mode; the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star and one on the telephone keypad.

Speaker Change: Welcome to the entire Gold's second quarter 2024 conference call.

Speaker Change: As a reminder, all participants are in a listen only mode. The conference is being recorded.

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Lisa Wilkinson: At this time, I would turn the conference call over to Lisa Wilkinson, by President, Investor Relations and Corporate Communications, with Centerra Gold. Please go ahead.

Unknown Executive: Operator. Operator. Operator. At this time, I'd like to turn the conference call over to Lisa Wilkinson, Vice President, Investor Relations, and Corporate Communications, Centerra Gold.

Speaker Change: At this time I'd like to turn the conference call over to Lisa Wilson said, Vice President Investor Relations and corporate communications.

Speaker Change: Our goal at.

Speaker Change: Please go ahead.

Lisa Wilkinson: Thank you, operator, and good morning, everyone. Welcome to Centerra Gold's second quarter 2024 results conference call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer, Paul Chawrun, Chief Operating Officer, and Ryan Snyder, Chief Financial Officer. Our release yesterday details our second quarter 2024 results. It should be read in conjunction with our MD&A and financial statements, both of which can be found on CDAR-EDGAR and on our website. All figures are in U.S. dollars unless otherwise noted.

Lisa Wilkinson: Thank you, operator, and good morning, everyone. Welcome to Centerra Gold's second quarter 2024 results conference call. Joining me on the call today are Paul Tomory, President and Chief Executive Officer; Paul Chawrun, Chief Operating Officer; and Ryan Snyder. Chief Financial Officer. Our release yesterday detailed our second quarter 2024 results. It should be read in conjunction with our MD&A and financial statements, both of which can be found on CedarEdger and our website. All figures are in US dollars unless otherwise noted. Presentations lies a company in this webcast are available on Centerra's website. Following the prepared remarks, we will open the call for questions.

Lisa Wilson: Thank you operator, and good morning, everyone welcome to Sentara Gold's second quarter 2024 results conference call joined.

Speaker Change: Joining me on the call today are Paul Tamari, President and Chief Executive Officer, Co Chairman, Chief operating Officer, and Ryan Snyder Chief Financial Officer.

Speaker Change: Our release yesterday detail, our second quarter 2024 results it should be read in conjunction with our MD&A and financial statements both of which can be found on SEDAR Edgar and our website.

Speaker Change: All figures are in U S dollars unless otherwise noted presentation slides accompanying this webcast are available on <unk> website.

Lisa Wilkinson: Presentation slides accompanying this webcast are available on Centerra's website. Following the prepared remarks, we will open the call for questions. Before we begin, I would like to caution everyone that certain statements made today may be forward-looking and are subject to risks which may cause our actual results to differ from those expressed or implied. Please refer to the cautionary statements included in the presentation, as well as the risk factors set out in our annual information form. Certain measures we will discuss are non-GAAP measures. Please refer to the description of non-GAAP measures in our news release and MD&A issued yesterday. I will now turn the call over to Paul Tomory.

Speaker Change: During the prepared remarks, we will open the call for questions.

Lisa Wilkinson: Before we begin, I would like to caution everyone that certain statements made today may be forward-looking and are subject to risks which may cause our actual results to differ from those expressed or implied. Please refer to the cautionary statements included in the presentation, as well as the risk factors set out in our Annual Information Form. Certain measures we will discuss are non-GAAP measures. Please refer to the description of non-GAAP measures in our news release and MD&A issued yesterday.

Speaker Change: Before we begin I would like to caution everyone that certain statements made today may be forward looking and are subject to risks, which may cause our actual results to differ from those expressed or implied please.

Speaker Change: Please refer to the cautionary statements included in the presentation as well as the risk factors set out in our annual information form.

Speaker Change: Certain measures, we will discuss our non-GAAP measures. Please refer to the description of non-GAAP measures in our news release and MD&A issued yesterday I will now turn the call over to Paul Tomorrow.

Paul Tomory: I will now turn the call over to Paul Tomory. Thanks, Lisa, and good morning, everyone. We delivered another quarter of solid operating performance and maintained consistent quarter of a quarter cash flow from operations before working capital and income taxes paid. Our year-to-day production costs are in line with our guidance ranges, and full year 2024 consolidate guidance for production costs and capex is unchanged. In the first half of the year, we've made good progress execute in our speech plan focused on maximizing the value of each lesson or portfolio. Earlier this year, we announced an additional agreement with Burrell Bold, which allows us to assess the amount of millions of potential to be a multi-decade operation.

Paul Tomory: Thanks, Lisa, and good morning, everyone. We delivered another quarter of solid operating performance and maintained consistent quarter-over-quarter cash flow from operations before working capital and income tax is paid. Our year-to-date production costs are in line with our guidance ranges, and full year 2024 consolidated guidance for production costs in CapEx is on display. In the first half of the year, we've made good progress executing our strategic plan focused on maximizing the value of ESHAs in our portfolio. Earlier this year, we announced an additional agreement with Royal Gold, which allows us to assess Mt. Milligan's potential to be a multi-decade operation.

Paul Tomorrow: Thanks, Lisa and good morning, everyone.

Paul Tomorrow: We delivered another quarter of solid operating performance and maintain consistent quarter over quarter cash flow from operations before working capital and income taxes paid.

Our year to date production costs are in line with our guidance ranges and full year 2024 consolidated guidance for production cost and Capex is unchanged.

Paul Tomorrow: In the first half of the year, we've made good progress executing our strategic plan focused on maximizing the value reshuffling our portfolio.

Paul Tomorrow: Earlier this year, we announced an additional agreement Royal Gold, which allows us to assess Mount Milligan has potential to be a multi decade operation.

Paul Tomory: This was the first key step in our strategy to realize the full potential of this cornerstone asset located in a top-tier mining jurisdiction. We continue to progress work on the preliminary economic assessment to update the larger resource to include all the drilling completed to date, to identify value-added initiatives at the plant, and to optimize the mine plan. We expect to complete the study in the first half of 2025.

Paul Tomory: This was a first key step in our strategy to realize the full potential of this cornerstone asset located in a top-tier mining jurisdiction. We continue to progress work on a preliminary economic assessment to update the larger resource to include all the drilling completed date. To identify, value added initiatives to the plant and optimize the mine plan. We expect to complete the study in the first half of 2025.

Paul Tomorrow: This was the first key step in our strategy to realize the full potential of this cornerstone asset located in a top tier mining jurisdiction.

Paul Tomorrow: We continue to progress work on the preliminary economic assessment to update the larger resource to include all the drilling completed to date to identify value added initiatives to the plant and to optimize the mine plan.

Paul Tomorrow: We expect to complete the study in the first half of 2025.

Paul Tomory: Also at Mount Milligan, we have continued our progress on the sitewide optimization program that was initially launched last year, and Paul Chawrun will speak to this later in the call. We remain focused on maximizing the value of our molybdenum business unit assets, which are comprised of the Thompson Creek Mine, Indiaco Mine, and the Langeloth Metallurgical Facility. In the second quarter, we advanced our pruning work at Thompson Creek.

Paul Tomory: Also at Mount Milligan, we have continued our progress on the statewide optimization program that was initially launched last year, and Paul Charon will speak to us later in the call. We remain focused on maximizing the value of our Milligan business unit assets, which are comprised of the Thompson Creek Mine, the Indecal Mine, and the Langelock Medical Facility. In the second quarter, we advance our primary work at Thompson Creek. With strong collaboration and proactive support from our regulatory partners, we successfully obtained authorizations for additional lands at Thompson Creek Nine, which will enable a proposed pit high-wall layback.

Also at Mount Milligan, we continue our progress on state wide optimization program that was initially launched last year.

Paul Tomorrow: Paul I'll speak to this later in the call.

Paul: We remain focused on maximizing the value of our molybdenum business unit assets, which are comprised of the Thompson Creek mine in the coal.

Paul Tomorrow: Coal mining the Languedoc metallurgical facility.

The second quarter, we advanced our burning work at Thompson Creek.

Paul Tomory: With strong collaboration and proactive support from our regulatory partners, we successfully obtained authorizations for additional lands at Thompson Creek Mine, which will enable a proposed pit high wall layback. This is an important deliverable in the overall permitting process and provides for a long runway of mining activities under the current plan. We remain on track to release the Thompson Creek FS study later this year, at which time we also expect to outline our commercial optimization plan for Langelof.

Paul Tomorrow: The strong collaboration and proactive support from our regulatory partners. We successfully obtained authorization for additional lands that Thompson Creek mine, which will enable a proposed pit high wall layback.

Paul Tomory: This is an important deliverable in the overall permanent process and provides for a long runway of mining activities under the current plan. We remain on track to release the Thompson Creek FS study later this year. At which time, we also expect to outline our commercial optimization plan for Langelot. We're encouraged by the value opportunity in Langelot and the expected synergies with the Thompson Creek Mine.

Paul Tomorrow: This is an important deliverable in the overall permitting process and provides for a long runway of money activities under the current plan.

Paul Tomorrow: We remain on track to release, the Thompson Creek F. S. Study later this year at which time, we also expect to outline our commercial optimization plan for language.

Paul Tomory: We're encouraged by the value opportunity in Langelot and the expected synergies with the Thomson Creek mine. With respect to our pipeline of growth projects, we continue to progress work at the Goldfield property in Nevada. Our focus this year has been on exploration on the large land package, looking for more oxide material, as well as metallurgical test work to support a lower capital flow sheet to maximize returns on the project. We expect to release an initial resource at Goldfield by the end of the year.

Paul Tomorrow: We're encouraged by the value opportunity and laying a lot and the expected synergies with the Thompson Creek mine.

Paul Tomory: With respect to our pipeline of growth projects, we continue to progress work at the Goldfield property in Nevada. A focus this year has been on exploration on the large land package looking for more oxide material, as well as metallurgical test work to support a lower capital flow sheet to maximize returns on the project. We expect to release an initial resource at Goldfield by the end of the year.

Paul Tomorrow: With respect to our pipeline of growth projects continue to progress work at Goldfield property in Nevada.

Paul Tomorrow: Focus this year has been on exploration on a large land package is looking for more oxide material as well as metallurgical test work to support a lower capital flow sheet to maximize returns on the project.

Paul Tomorrow: We expect to release, an initial resource at goldfield by the end of the year.

Paul Tomory: Finally, I'd like to provide an update on our ESG initiatives. In line with our commitment to sustainable and responsible mining practices, we recently published our 23 Annual ESG report. We've made meaningful progress in our sustainable journey over the past year, marked by significant achievements across the organization, including the following. Throughout 2023 and this year, efforts have been made to identify potential efficiencies in greenhouse gas reduction opportunities of a side level, with a goal of establishing attainable targets. Second, the number of affordable incidents decreased by 17 percent. Thirdly, we contributed over 3.2 million to community investments and donations across our operations.

Paul Tomory: Finally, I'd like to provide an update on our ESG initiative. In line with our commitment to sustainable and responsible mining practice, we recently published our 2023 annual ESG report. We've made meaningful progress in our sustainability journey over the past year, marked by significant achievements across the organization, including the following. Throughout 2023 and this year, efforts have been made to identify potential efficiencies in greenhouse gas reduction opportunities at the site level with a goal of establishing attainable targets. Second, the number of reportable incidents decreased by 17%.

Paul Tomorrow: Finally, I'd like to provide an update on our ESG initiatives.

Paul Tomorrow: In line with our commitment to sustainable and responsible mining practices. We recently published our 2023 annual ESG report.

Paul Tomorrow: Made meaningful progress in our sustainability journey over the past year marked by significant achievements across the organization, including the following.

Paul Tomorrow: Throughout 2023, and this year efforts been made identify potential efficiencies and greenhouse gas reduction opportunities at the site level with the goal of establishing attainable targets.

Paul Tomorrow: Second the number of reportable incidents decreased by 17%.

Paul Tomory: Thirdly, we contributed over $3.2 million to community investments and donations across our operations. And finally, we achieved the 2026 gender diversity goal two years ahead of schedule with 38% female representation on the board of directors and 33% among officers of the company. As we look ahead, we're dedicated to continuing our efforts to drive sustainable value and positive impact. And with that, I'll pass the call over to Paul. We'll walk through our operational performance for the quarter.

Paul Tomorrow: Thirdly, we contributed over $3 2 million to community investments in donations across our operations.

Paul Tomory: And finally, we achieved the 2020-26 gender diversity goal two years ahead of schedule, with 38 percent female representation on the board of directors and 33 percent among officers of the company. As we look ahead, we're dedicated to continue our efforts to drive sustainable value and positive impact.

Paul Tomorrow: Finally, we achieved the 2026 gender diversity goals two years ahead of schedule with 38% female representation on the board of directors at 33% among the officers of the company.

Paul Tomorrow: As we look ahead, we're dedicated to continue our efforts to drive sustainable value and positive impact.

Paul Tomory: And with that, I'll pass the call over to Paul. We'll walk through our operational performance for the quarter.

Paul Tomorrow: And with that I'll pass the call over to Paul.

Paul: Walk through our operational performance for the quarter.

Paul Chawrun: Thanks, Paul. I'd like to start with Mount Milligan's safety performance. The operating team continues to embrace the sitewide optimization program, which starts with continuous improvement to our safety performance. Here today, we have seen evidence of this through a significant reduction in high potential incidences.

Paul Chawrun: Thanks, Paul.

Paul Tomorrow: Thanks, Paul I'd like to start with Mount Milligan safety performance. The operating team continues to embrace the site wide optimization program, which starts with continuous improvement to our safety performance.

Paul Chawrun: I'd like to start with Mt. Milligan safety performance. The operating team continues to embrace the site-wide optimization program, which starts with continuous improvement to our safety performance. Here today, we have seen evidence of this through a significant reduction in high potential incidents. I would also like to congratulate our Mt. Milligan Mine Rescue Team for placing first overall in the Northern BC competition.

Paul: Year to date, we have seen evidence of this through a significant reduction in high potential incidents.

Paul Chawrun: I would also like to congratulate our Mount Milligan Mine Rescue Team for placing first overall in the Northern BC competition. On slide five, we show operating highlights at Mount Milligan for the quarter. Mount Milligan produced over 38,000 ounces of gold and over 13 million pounds of copper in the second quarter. Gold and copper sales were down quarter over quarter, which was anticipated due to the timing of shipment.

Paul Tomorrow: I would also like to congratulate our Mount Milligan mine rescue team for placing first overall and in northern BC competition.

Paul Chawrun: On slide five, we shall Operating highlights at Mt. Milligan for the quarter. Mt. Milligan produced over 38,000 ounces of gold and over 13 million pounds of copper in the second quarter. Gold and copper sales were down quarter to quarter, which was anticipated due to the timing of shipments. Both gold and copper sales are expected to increase in the second half of the year, contributing approximately 60% of the annual sales. In the second quarter, all-in sustaining costs on a by-product basis were $1,234 per ounce. Higher quarter of a quarter due to lower sales and higher sustaining capital.

Paul Tomorrow: On slide five we show operating highlights at Mount Milligan for the quarter.

Paul Tomorrow: Mount Milligan produced over 38000 ounces of gold and over 13 million pounds of copper in the second quarter.

Paul Tomorrow: Gold and copper sales were down quarter over quarter, which was anticipated due to the timing of shipments.

Paul Chawrun: Both gold and copper sales are expected to increase in the second half of the year, contributing approximately 60% of the annual sale. In the second quarter, all-in sustaining costs on a by-product basis were $1,234 per ounce, higher quarter-over-quarter due to lower sales and higher sustaining capital. The 2024 guidance metrics at Mount Milligan remain unchanged.

Paul Tomorrow: Both gold and copper sales are expected to increase in the second half of the year contributing approximately 60% of the annual sales.

Paul Tomorrow: In the second quarter, all in sustaining cost on a byproduct basis or $234 per ounce higher quarter over quarter due to lower sales and higher sustaining capex.

Paul Chawrun: SpaceX. The 2024 guidance metrics at Mount Milligan remain unchanged. During the second quarter, we continued our progress on the site white optimization program at Mount Milligan that was initially launched last year. This program has been focused on an elistic assessment of occupational health and safety, as well as improvements in mine and plant operations. While the optimization program is still ongoing, year-to-date we have begun to see productivity improvements in the load haul cycle at the mine as well as the plant processing costs. In the first six months of 2024, milling costs at Mount Milligan were $5.60 per ton processed, 12% lower than the same period last year.

Paul Tomorrow: The 'twenty 'twenty four guidance metrics at Mount Milligan remain unchanged.

Paul Chawrun: During the second quarter, we continued our progress on the Sitewide Optimization Program at Mount Milligan that was initially launched last year. This program is focused on an holistic assessment of occupational health and safety as well as improvements in mine and plant operations. While the optimization program is still ongoing, year to date, we have begun to see productivity improvements in the load haul cycle at the mine, as well as plant processing costs. In the first six months of 2024, milling costs at Mount Milligan were $5.60 per ton processed.

Paul Tomorrow: During the second quarter, we continued our progress on the site wide optimization program at Mount Milligan that was initially launched last year.

Paul Tomorrow: This program has been focused on and holistic assessment of occupational health and safety as well as improvements in mine and plant operations.

Paul Tomorrow: While the optimization program is still ongoing year to date, we have begun to see productivity improvements and the load haul cycle at the mine.

Paul Tomorrow: As well as the plant processing costs.

Paul Tomorrow: In the first six months of 'twenty 'twenty four milling costs at Mount Milligan were $5 60 per ton process.

Paul Tomorrow: 12% lower than the same period last year.

Paul Chawrun: Due to the longer term nature of the plant, we expect to see improvements in the unit mining costs in 2025.

Paul Chawrun: 12% lower than the same period last year. Due to the longer-term nature of the mining optimization initiatives, we expect to see improvements in unit mining costs in 2025. Now, moving on to Oxford. Starting with safety performance, year-to-date, OCUT is tracking on target on both total reportable injury frequency rate and severity rate. By embracing various safety systems and programs, including our WorkSafe and HomeSafe initiatives, we are demonstrating our commitment to continuous improvement on our journey towards zero harm.

Paul Tomorrow: Due to the longer term nature of the mining optimization initiatives, we expect to see improvements in the unit mining costs in 2025.

Paul Chawrun: Now moving on to OXU. Starting with safety performance, year-to-date OXU is tracking on target on both total reportable injury frequency rate and severity rate. By embracing various safety systems and programs, including our WorkSafe Home Safe initiative, we are demonstrating our commitment to continuous improvement in our journey towards zero harm.

Speaker Change: Now moving on to Oxford.

Oxy: Starting with safety performance year to date Oxy is tracking on target on both total reportable injury frequency rate.

Oxy: And severity rates.

Speaker Change: By embracing various safety systems and programs, including our work safe home Safe initiative, we are demonstrating our commitment to continuous improvement in our journey towards zero harm.

Paul Chawrun: On slide six, we show operating highlights at off-suit for the quarter. Second quarter production was over 51,000 ounces. This is less than last quarter due to the winding down of inventory built up during the operations shutdown in 2022 and 2023. Our 2024 production guidance at OCSU is unchanged, with approximately 40 to 45% of the annual production weighted to the second half of the year. In the second quarter, all-in sustaining costs on a by-product basis were $943 per ounce, which is higher compared to the previous quarter due to lower sales and higher royalty costs resulting from higher average realized gold prices.

Paul Chawrun: On slide six, we show operating highlights at OXU for the quarter. Second quarter production was over 51,000 ounces. This is less than last quarter due to the winding down of inventory built up during the operations shutdown in 2022 and 2023. Our 2024 production guidance at OXU is unchanged, with approximately 40 to 45% of the annual production weighted to the second half of the year. In the second quarter, all in sustaining costs on a by-product basis were $943 per ounce, which is higher compared to last quarter due to lower sales and higher royalty costs resulting from higher average realized gold prices.

Speaker Change: On slide six we show operating highlights at oxy for the quarter.

Speaker Change: Second quarter production was over 51000 ounces.

Speaker Change: This is less than last quarter due to the winding down of inventory built up during the operation shutdown in 2022 and 2023.

Speaker Change: Our 'twenty 'twenty four production guidance at Oxy is unchanged with approximately 40% to 45% of the annual production weighted to the second half of the year.

Speaker Change: In the second quarter, all in sustaining cost on a byproduct basis were $943 per ounce, which is higher compared to last quarter due to lower sales and higher royalty costs, resulting from higher average realized gold prices.

Paul Chawrun: Offsuits cost guidance ranges for the full year of 2024 are unchanged. However, we could be at the high end or potentially exceed the guidance range if gold prices remain at current elevated levels, mainly driven by higher royalty rates. I'll now pass it on to Ryan to walk through our financial highlights for the quarter.

Paul Chawrun: OXU's cost guidance ranges for the full year of 2024 are unchanged.

Speaker Change: Offshoots cost guidance ranges for the full year of 2024 are unchanged. However.

Paul Chawrun: However, we could be at the high end or potentially exceed the guidance range if goal prices remain at current elevated levels, mainly driven by higher royalty rates.

Speaker Change: However, we could be at the high end or potentially exceed the guidance range. If gold prices remain at current elevated levels, mainly driven by higher royalty rates.

Ryan Snyder: I'll now pass it on to Ryan to walk through our financial highlights for the quarter. Thanks, Paul.

Speaker Change: I'll now pass it onto Ryan to walk through our financial highlights for the quarter.

Ryan Snyder: Thanks, Paul. Slide seven details our second quarter financial results. Adjusted net earnings in the second quarter were $47 million, or $0.23 per share. In the second quarter, sales were 83,258 ounces of gold and 11.7 million pounds of copper. The average realized price was $2,097 per ounce of gold and $3.79 per pound of copper, which incorporates the existing streaming arrangements at Mount Miller. In the molybdenum business unit, approximately 2.7 million pounds of molybdenum were sold in the second quarter at the Langloth facility at an average realized price of $22.10 per pound.

Ryan Snyder: Thanks, Paul.

Ryan Snyder: Slide seven details are second quarter financial results. Adjusted net earnings in the second quarter were $47 million or 23 cents per share. In the second quarter, sales were 83,258 ounces of gold and 11.7 million pounds of copper. The average realized price was $2,097 pounds of gold and $3.79 per pound of copper, which incorporates the existing streaming arrangements at Mount Milligan. At the Milliganum business unit, approximately 2.7 million pounds of Milliganum was sold in the second quarter at the Langloff facility at an average realized price of $22.10 per pound of copper. This annualized throughput rate represents utilization of approximately 30% of the facility's capacity.

Ryan Snyder: Slide seven details our second quarter financial results adjusted.

Ryan Snyder: Adjusted net earnings in the second quarter were $47 million or 23 cents per share.

Ryan Snyder: In the second quarter sales were 83258 ounces of gold and 11.7 million pounds of copper. The average realized price was $2097 per ounce of gold and $3 79 per pound of copper, which incorporates the existing streaming arrangements at Mount Milligan.

Speaker Change: At the molybdenum business unit, approximately $2 7 million pounds of molybdenum was sold in the second quarter at the Wynn Las facility at an average realized price of $22.10 per pound.

Ryan Snyder: This annualized throughput rate represents utilization of approximately 30% of the facility's capacity. More details on future plans for Langlois are expected to be provided later this summer with the release of the Thompson Creek Mine Feasibility Study.

Ryan Snyder: This annualized throughput rate represents utilization of approximately 30% of the facility's capacity.

Ryan Snyder: More details on future plans for Langloff are expected to be provided later this summer with the release of the Thompson Creek Mine feasibility study.

Speaker Change: More details on future plans for Lagos are expected to be provided later this summer with the release of the Thompson Creek mine feasibility study.

Ryan Snyder: Consolidated all-in sustaining costs on a byproduct basis in the second quarter were $1,179 per ounce, and our full year consolidated guidance for unit cost metrics is unchanged. Slide eight shows our financial highlights for the. In the second quarter, we generated consistent cash flow from operations before working capital and income taxes paid of $94 million. After routine statutory tax and royalty payments to the Turkish government in the second quarter, cash flow from operations on a consolidated basis for the quarter was $3 million, and we had a free cash flow deficit of $27.

Speaker Change: Consolidated all in sustaining cost on a byproduct basis in the second quarter were $1179 per ounce and our full year consolidated guidance for unit cost metrics is unchanged.

Ryan Snyder: The guidance for unit cost metrics is unchanged.

Ryan Snyder: Slide 8 shows our financial highlights for the quarter. In the second quarter, we generated consistent cash flow from operations before working capital and income taxes paid of 94 million. After routine statutory tax and royalty payments to the Turkish government in the second quarter, cash flow from operations on a consolidated basis for the quarter was 3 million, and we had a free cash flow deficit of 27 million. In the second quarter, Mount Milligan generated 29 million in cash from operations and 14 million in free cash flow due to the timing of shipments. Gold and copper sales volumes are expected to be higher in the second half of the year.

Speaker Change: Slide eight shows our financial highlights for the quarter.

Speaker Change: In the second quarter, we generated consistent cash flow from operations before working capital and income taxes paid of $94 million.

Ryan Snyder: After routine statutory tax and royalty payments to the Turkish government in the second quarter cash flow from operations on a consolidated basis for the quarter was $3 million and we had a free cash flow deficit of $27 million.

Ryan Snyder: In the second quarter, Mount Milligan generated $29 million in cash from operations and $14 million in free cash flow. Due to the timing of shipments, gold and copper sales volumes are expected to be higher in the second half of the year. Aksu used $2 million of cash from operations and had a free cash flow deficit of $11 million in the second quarter. This was impacted by routine statutory tax and royalty payments of $105 million made to the Turkish government.

Speaker Change: In the second quarter, Mount Milligan generated $29 million in cash from operations and $14 million in free cash flow.

Speaker Change: Due to the timing of shipments gold and copper sales volumes are expected to be higher in the second half of the year.

Ryan Snyder: Oxu used 2 million of cash from operations and had a free cash flow deficit of 11 million in the second quarter. This was impacted by routine statutory tax and royalty payments of 105 million made to the Turkish government.

Speaker Change: Oxy used $2 million of cash from operations and had a free cash flow deficit of $11 million in the second quarter. This was impacted by routine statutory tax and royalty payments of 105 million each of the Turkish government.

Ryan Snyder: We expect to generate strong cash flow from operations at Oxu in the second half of 2024. The Millibranum Business Unit as a whole used 8 million of cash from operations and had a free cash flow deficit of 13 million in this quarter. This related primarily to activities at the Thompson Creek Mine, as landloth operating cash flows were break even for the second quarter. Interest income was 8 million in the second quarter, which primarily includes interest on bank term deposits. We continue to generate significant interest income on our cash balance.

Ryan Snyder: We expect to generate strong cash flow from operations at Auxute in the second half of 2024. The molybdenum business unit, as a whole, used $8 million of cash from operations and had a free cash flow deficit of $13 million this quarter. This related primarily to activities at the Thompson Creek mine, as Langlof operating cash flows were break-even for the second quarter.

Speaker Change: We expect to generate strong cash flow from operations at Oxford in the second half of 2024.

Speaker Change: The molybdenum business unit as a whole used $8 million of cash from operations and had a free cash flow deficit of $13 million. This quarter. This related primarily to activities at the Thompson Creek mine as Wayne loss of operating cash flows were breakeven for the second quarter.

Paul Tomory: Interest income was $8 million in the second quarter, which primarily included interest on bank term deposits. We continue to generate significant interest income on our cash balance. A key focus for Centerra is returning capital to shareholders. In the second quarter, we were active in share buybacks, repurchasing 1.4 million shares for a total consideration of 10 million. Also, the board declared a quarterly dividend of seven cents per share. Returning capital to shareholders remains a key pillar in our capital allocation strategy, and we expect to remain active in share buybacks dependent on market conditions.

Ryan Snyder: Interest income was $8 million in the second quarter, which primarily includes interest on bank term deposits. We continue to generate significant interest income on our cash balance.

Ryan Snyder: A key focus for Sintera is returning capital to shareholders. In the second quarter, we were active on share buybacks, repurchasing 1.4 million shares for total consideration of 10 million. Also, the board declared a quarterly dividend of $0.70 per share. Returning capital to shareholders remains a key pillar in our capital allocation strategy, and we expect to remain active on the share buybacks, dependent on market conditions. At the end of the second quarter, our cash balance was $592 million. This provides us with total liquidity of $992 million and positions us well to execute on our strategic plan and deliver shareholder value.

Speaker Change: A key focus for some Tara is returning capital to shareholders in the second quarter. We were active on share buybacks repurchasing one 4 million shares for total consideration of $10 million.

Speaker Change: Also the board declared a quarterly dividend of <unk> seven per share.

Speaker Change: Returning capital to shareholders remains a key pillar in our capital allocation strategy and we expect to remain active on the share buybacks dependent on market conditions.

Paul Tomory: At the end of the second quarter, our cash balance was $592 million. This provides us with total liquidity of $992 million and positions us well to execute on our strategic plan and deliver shareholder value. I'll pass this on to Paul for some closing.

Ryan Snyder: At the end of the second quarter, our cash balance was $592 million. This.

Ryan Snyder: This provides us with total liquidity of $992 million and positions us well to execute on our strategic plan and deliver shareholder value.

Paul Tomory: I'll pass it back to Paul for some closing remarks. Thanks, Ryan. We remain committed to delivering consistent operating results each quarter and driving value for shareholders.

Ryan Snyder: I'll pass it back to Paul for some closing remarks.

Paul Tomory: Thanks, Ryan. We remain committed to delivering consistent operating results each quarter and driving value for our shareholders. Looking ahead, we expect to continue to deliver on our strategic plan with the release of the Thompson Creek feasibility study and the Langeloft Commercial Optimization Plan later this summer. And with that, Operator, we'll open the call to questions, please.

Speaker Change: Thanks, Ryan we remain committed to delivering consistent operating results each quarter and driving value for our shareholders.

Paul Tomory: Looking ahead, we expect to continue to deliver on our strategic plan with the release of the Thompson Creek feasibility study and the landloth commercial optimization plan later this summer.

Speaker Change: Looking ahead, we expect to continue to deliver on our strategic plan with the release of the Thompson Creek Feasibly study and the lengel on commercial optimization plant later this summer.

Unknown Executive: And without operator, we'll open the call to questions, please. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. To join the question cue, you may press star and one using a telephone keypad. You will hear a tone acknowledging your request. If you are using a speaker phone, we do ask you, please pick up the handset prior to pressing the keys. To withdraw your questions, you may press star and two. We'll pause for a moment as Colors join the question cue.

Speaker Change: And with that operator, we'll open the call to questions. Please.

Operator: Ladies and gentlemen, at this time, we'll begin the question and answer session. To join the question queue, you may press star and one on the telephone keypad. You'll hear a tone acknowledging your request. If you are using a speaker phone, we do ask that you please pick up the handset prior to pressing the button. To withdraw your questions, you may press star and. We'll pause for a moment as callers join the question. And our first question today comes from Anita Soni from CIBC World Markets. Please go ahead with your question.

Speaker Change: Ladies and gentlemen at this time, we'll begin the question and answer session to.

Speaker Change: To join the question queue, you May press star and one using a telephone keypad, you'll hear a tone acknowledging your request.

Speaker Change: If you are using a speaker phone we do ask you. Please pick up the handset prior to pressing the keys.

Speaker Change: To withdraw your questions you May press star two.

Speaker Change: We will pause for a moment.

Speaker Change: As callers join the question queue.

Anita Soni: In our first question today, comes from Anita Soni from C.I. B.C., World markets. Please go ahead with your question.

Speaker Change: And our first question today comes from Anita Soni from CIBC World markets. Please go ahead with your question.

Anita Soni: Good morning, Paul. Thanks for my question. The first one is with regard to OXUT and the HIT sequencing. I think I was expecting a little bit more stripping to be done this quarter, and I'm just wondering if some of that was pushed out into the back half of the year, or are you done with the stripping campaign that you had that I think was happening in the first half of the year?

Paul Tomory: Good morning. Paul, thanks for my question. First one is with regards to oxute and the hit sequencing. I think I was expecting a little bit more stripping to be done this quarter. And I'm just wondering if some of that was pushed out into the back half of the year, or are you done with the stripping campaign that you had that I think was happening in the first half of the year. Thanks, thanks, Anita. It's all here. We're continuing with our way stripping through the year. That's relatively even, and it's approximately 16 million times. So we're on track for that.

Anita Soni: Hi, good morning.

Anita Soni: Oh thanks.

Speaker Change: First one is with regard to.

Speaker Change: And Uh huh.

Speaker Change: Sequencing I think I was expecting a little bit more.

Speaker Change: Flipping to be done this quarter and then just wondering if you know some of that got pushed out into the back half of the here or are you done with the stripping campaign.

Speaker Change: Hum.

Speaker Change: In the first half of the year.

Paul Chawrun: Thanks, Anita. It's Paul here.

Speaker Change: Oh, thanks, Thanks, I needed it's Paul here.

Speaker Change: We're continuing with our waste stripping through the year, that's relatively even and it's approximately 16 million tonnes. So we are on track for that.

Paul Chawrun: We're continuing with our waste stripping through the year. That's relatively even. And it's approximately 16 million tons. So we're on track for that. We did have a little bit of change in our ore sequencing, though, and that was really just to blend our Guni-Tepi pit, which is higher grade, with a little bit higher clay. And so we needed to adjust our mine ore. And then we did have, as we noted in the MD&A, a little bit of dilution due to the rainy season.

Paul Tomory: We did have a little bit of change in our or sequencing. So when that was really just to blend our Guggenutepi pit, which is higher grade, has a little bit higher clay. And so we needed to adjust our mine or sequencing. And then we did have, as we noted in the MDNA, we did have a little bit of a dilution due to the rainy season. Okay, so what you're saying is that this quarter, you were in a higher grade than you can actually lower quarter of a quarter. I'm not a little confused about that. No, no, we needed to change the or sequencing timing in the larger pit, the Keltepi pit, because we needed to blend some of the higher grade on Guggenutepi over all the grave is lower.

Speaker Change: We did have a little bit of change in our or sequencing. So and that was really just a blend darko and you'd have to be pet, which is higher grade has a little bit higher clay and so we needed to adjust our our mine or sequencing.

Speaker Change: And then we did have as we noted in the MD&A, we did have a little bit of dilution due to the rainy season.

Paul Chawrun: Okay, so what you're saying that this quarter you were in a higher grade because it's actually lower quarter over quarter. I'm not a little confused about that.

Speaker Change: Okay, So you're saying that this quarter you were in the higher grades that you can actually lower quarter over quarter I'm not I'm, a little confused about that.

Paul Chawrun: No, no, we needed to change the ore sequencing timing in the larger pit, the Caltepee pit, because we needed to blend some of the higher grade on Glenutepee, so overall, the grade was lower. And then, of course, we were winding down the inventory that was built up during the shutdown. Okay.

Speaker Change: No no we needed to change the or sequencing timing in larger hit the couch hefty pet because we needed to blend some of the higher grade on Glenn Glenn you said the overall the grade was lower and then of course, we were winding down the inventory that was built up during the shutdown.

Paul Tomory: And then, of course, we were winding down the inventory that was built up during the shutdown.

Anita Soni: Okay, all right, thanks. That helps.

Paul Tamari: Okay, Alright, thanks that helps and then just a bigger broader question for Paul Tamari. As you think about you know do you have some significant free cash flow coming into the back half of the year and as you think about you know where gold prices sit and you know where molybdenum and has that changed your thinking at all and in terms of.

Paul Tomory: And then just a bigger, broader question for Baltimore. As you think about, you know, that you do have some significant free cash coming into the back half of the year. If you think about, you know, where gold prices sit and, you know, we're milled in and said, does that change your thinking at all in terms of, you know, what gets prioritized in terms of use of cash? In terms of use of cash, the first thing coming down our pipe here is the, the Thompson Creek feasibility study. So that that's coming here at the end of the summer.

Paul Chawrun: Okay. All right. Thanks. That helps. And then just a bigger, broader question for Paul Tomory. As you think about, you know, that you do have some significant free cash flow coming into the back half of the year, as you think about, you know, where gold prices sit and, you know, where malignancy is, does that change your thinking at all in terms of, you know, what gets prioritized in terms of the use of cash

Speaker Change: You know what gets prioritized in terms of use of cash.

Speaker Change: Okay.

Paul Tomory: In terms of the use of cash, the first thing coming down our pipe here is the Thompson Creek Feasibility Study. So that's coming here at the end of the summer.

Paul Tamari: In terms of use of cash the first thing coming down our pipe Here's the Thompson Creek feasibility study so that that's coming here at the end of the summer, we're happy with where things are at our molybdenum price, but more importantly, we've done a lot of work internally.

Paul Tomory: We're happy with where things are at on the limited price, but more importantly, we've done a lot of work internally. Over the last six, eight months on understanding the value potential of the integration between Thompson Creek and Langelop. And that'll be shown when we put out the study results. So we really like what we're seeing on the Thompson Creek Langelop combination. And you'll see that when we, we put out our results and our intended path forward. So that remains an area where we'll prioritize capital allocation. The other. We're always looking at opportunities externally to add specifically on the gold side.

Paul Tomory: We're happy with where things are at on the limited price. But more importantly, we've done a lot of work internally over the last six, eight months on understanding the value potential of the integration between Thompson Creek and Langelop, and that'll be shown when we put out the study results.

Speaker Change: For the last six to eight months on understanding the value potential of the integration between Thompson Creek, and Wangle up and that'll be shown when we put out the study results. So we really like what we're seeing.

Paul Tomory: So we really like what we're seeing with the Thompson Creek Langeloff combination, and you'll see that when we put out our results and our intended path forward. So that remains an area where we will prioritize capital allocation. The other, We're always looking at opportunities externally to add specifically on the gold side, but as you know, things are pretty fully valued out there, and a lot of the assets that come up for sale are not always, You know, they'll have various issues technically or locationally or on other matters.

Speaker Change: On the Thompson Creek mine Galore combination and you'll see that when we put out our results and our intended path forward. So that remains an area, where we will prioritize capital allocation.

Speaker Change: The other.

Speaker Change: We're always looking at opportunities externally to add specifically on the gold side.

Paul Tomory: But, as you know, things are pretty fully valued out there, and a lot of the assets that come up for sale are not always. You know, they'll have various issues technically, or locationally, or, or, or on other, on other matters. So we're very disciplined in the way we look at M&A. So another example is this past quarter we made an investment in a junior, and we think there's good value to be had very early in the chain, partnering with a junior's explorers. And that forms another key part of a capital allocation. So yes, Malibu them will remain something we want to talk about in the near term here.

Speaker Change: But as you know things are pretty fully valued out there and a lot of the assets that come up for sale.

Speaker Change: Are not always there.

Speaker Change: We'll have various issues technically or locational or or or.

Speaker Change: Or or another on other matters. So we're very disciplined in the way we look at M&A.

Paul Tomory: So we're very disciplined in the way we look at M&A. So another example is this past quarter, we made an investment in a junior, and we think there's good value to be had very early in the chain, partnering with juniors and explorers. And that forms another key part of capital allocation. So yes, molybdenum will remain something we're going to talk about in the near term. We continue to look for opportunities in gold, and that remains a major strategic focus.

Speaker Change: So another example is this past quarter, we made our investment in a junior and we think theres good value to be had very early in the chain partnering with a juniors explorers.

Speaker Change: And that forms another key part of our capital allocation. So yes, molybdenum will remain somebody who wanted to talk about in the near term here. We continue to look for opportunities in gold and that remains a major strategic focus.

Paul Tomory: We continue to look for opportunities in gold, and that remains a major strategic focus. And by the drill bit as well, we're going to continue drilling, and we're also going to provide updates on our resource models for a bold field and not million by the end of the year. We're pretty encouraged by what we're seeing, particularly not million.

Paul Tomory: And by the drill bit as well, we're going to continue drilling. And we're also going to provide updates on our resource models for Goldfield and Milligan by the end of the year. We're pretty encouraged by what we're seeing, particularly in Mount Mellon. Okay, I'll leave it there.

Speaker Change: And oh by the drill bit as well, we're going to continue drilling and we're also going to provide updates on our resource models for both field and Mount Milligan by the end of the year and where.

Speaker Change: We're pretty encouraged by what we're seeing particularly in Mount Milligan.

Paul Tomory: Okay, I'll leave it there and get back in the queue.

Anita Soni: Okay, I'll leave it there and get back in the queue. Yes.

Speaker Change: Okay, I'll leave it there and get back into queue.

Speaker Change: Yes.

Unknown Executive: Our next question comes from lingerie from BML. So you could please go ahead with the question. Thank you.

Raj Ray: Our next question comes from Raj Ray from BMO. Please go ahead with your question.

Speaker Change: Our next question comes from Raj Ray from BMO. Please go ahead with your question.

Raj Ray: Thank you, Albert. Good morning, Paul and team.

Unknown Executive: Good morning, Paul and team. My first question is on mountaineering, and Q2 grades were lower. You did mention it was mind sequencing, but was it more than what you expected, or was it as per what your mind plan suggested.

Raj Ray: Thank you operator, good morning, Paul and team. My first question is on Mount Milligan Q2 grades were lower.

Raj Ray: You did mention it was mine sequencing, but was it the northern what you had expected or it will spur what are your mine plan suggested and then looking at the second half of the year, how should we look at grades.

Unknown Executive: And then looking at the second half of the year, how should we look at grades for Q3 and Q4 and then also on recovery for gold slightly lower? Should we expect second half recovery to pick up again like you want, or do you expect to go to hover around these levels?

Speaker Change: For Q3, and Q4 and then also on recovery for gold slightly lower so should we expect a second half recovery has to pick up again like Q1 or do you expect the goons to hold around these levels.

Unknown Executive: So that's what first on the mountain elegant and then secondly, with respect to the Molly study that's coming up, I understand that once the feasibility study is out, you will decide on what capital to spend, but should we anticipate any spending Q4 or is this more 2025 if and when you decide to spend any capital there.

Speaker Change: So that's first of all on the Mount Milligan and then secondly.

Speaker Change: With respect to the Maldives study, that's coming up I understand that the ones that people do this study is that what they will decide on what capital to spend but should we anticipate any spend in Q4 or is this more of a 2025.

Speaker Change: It depends on who decides to.

Speaker Change: Spend any capital there.

Paul Chawrun: Paul, do the mountain elegant, and I'll take over on. Okay, so mountain elegant, there was a number of questions there. So in Q2, yeah, we had standard mind sequencing, and that's why you saw the grades somewhat lower. That being said, in terms of recovery, our gold recovery, we can't expect that to go up a little bit. And that's just some of the initiatives that we're doing on our optimization program. We're calling that M plus, so we can expect to see some higher gold recovery for a number of different reasons. And then in terms of the grade going forward to the remainder of the year, I think the best thing to do is just take a look at our guidance. We're on track for that, and then that will pan out.

Speaker Change: Well, Paul will do the Mount Milligan, and then I'll take over on Bluebird Okay.

Paul Chawrun: My first question is on Mount Milligan, but in Q2, grades were lower. You did mention it was mind sequencing, but was it more than what you had expected, or was it as per what your mind plan suggested? And then, looking at the second half of the year, how should we look at grades? for Q3 and Q4. And then also on recovery for gold, slightly lower. Should we expect second-half recoveries to pick up again, like Q1?

Paul: Okay. So at Mount Milligan, there was a number of questions. There. So in Q2, Yeah. We had standard mine sequencing and that's why you saw the grades somewhat lower.

Paul Chawrun: Or do you expect the gold prices to hover at these levels? So that's first on Mount Milligan, and then secondly. With respect to the MOLI study that's coming up, I understand that once the feasibility study is out, they will decide on what capital to spend. But should we anticipate any capital spend in Q4 or is this more 2025, if and when you decide to spend any capital there?

Paul Chawrun: Well, Paul will do the map mail again, and I'll take over on that. Sure. Okay. Okay. So.

Raj Ray: That being said in terms of recovery our gold recovery, we can expect that to go up a little bit and that's just some of the.

Paul Chawrun: Okay, so Mount Milligan, there were a number of questions there. So in Q2, yeah, we had standard mine sequencing, and that's why you saw the grades somewhat lower. That being said, in terms of recovery, our gold recovery, we can expect that to go up a little bit. And that's just some of the initiatives that we're doing in our optimization program. We're calling that M+.

Speaker Change: Some of the initiatives that we're doing on our optimization program, we're calling that M plus.

Paul Chawrun: So we can expect to see somewhat higher gold recovery for a number of different reasons. And then, in terms of the grade going forward to the remainder of the year, I think the best thing to do is just take a look at our guidance. We're on track for that, and then it will pan out. But we will expect slightly higher grades for the remainder of the year, although not exceptionally higher. And I think that was the bulk of your questions about Matt Milligan.

Raj Ray: So we can expect to see somewhat higher gold recovery for a number of different reasons.

Speaker Change: And then in terms of the grade going forward to the remainder of the year I think the best thing to do is just take a look at our guidance. We're on track for that and then that will.

Paul Chawrun: But we will expect a little bit higher grades for the remainder of the year, not exceptionally higher. And I think that was the bulk of your questions on Mountain Elegant.

Speaker Change: That will pan out we are good, but we will expect a little bit higher grades for the remainder of the year.

Speaker Change: Not exceptionally higher.

Speaker Change: And I think that was the bulk of your questions on Mount Milligan.

Paul Chawrun: All right, so on Malibu, Ryan would have mentioned as prepare remarks that there was some spending in the quarter at Thompson Creek related to early works activities. We continue to do that. So in anticipation of the projects that are coming out in a few weeks here, we continue to prepare the site for a potential go decision on the project. And so there has been some spending, and there will continue to be spending here through August and into September as we prepare for a decision there. If you want more details, Ryan could speak to that, but perhaps that answers your question.

Paul Chawrun: All right, so on Molybdenum, Ryan would have mentioned in his prepared remarks that there was some spending in the quarter at Thompson Creek related to early works activities. We continue to do that. So, in anticipation of the project study coming out in a few weeks here, we continue to prepare the site for a potential go decision on the project. And so there has been some spending, and there will continue to be spending through August and into September as we prepare for a decision there. If you want more details, Ryan could speak to that, but perhaps that answers your question.

Speaker Change: Alright, so on molybdenum Ryan would've mentioned in his prepared remarks that there was some spending in the quarter at Thompson Creek related to early works activities. We continue to do that so in anticipation of the projects that are coming out and yeah.

Speaker Change: A few weeks here, we continue to prepare the site for.

Speaker Change: For a potential go decision on the project and so there has been some spending and there will continue to be spending.

Speaker Change: Here through August and into September as we prepare for a decision. There. If you want more details Ryan can speak to that but perhaps that answers your question.

Ryan Snyder: No, that's good. I think we will guide this spending for the remainder of the year as part of that release. And so, if we do go forward, it will be spending. There is spending now. There is early works as Paul says it will provide an update number for the remainder of 2024 with that.

Paul Chawrun: No, that's good. I think we will guide the spending for the remainder of the year as part of that. So, if we do go forward, there will be spending, there is spending now, there is early works, as Paul says, it will provide an updated number for the remainder of 2020.

Speaker Change: No. That's good I think rocky we will we will guide the spending for the remainder of the year.

Speaker Change: As part of that so.

Speaker Change: So.

Speaker Change: If we do go forward.

Speaker Change: We'll be spending there is spending now there is early works as Paul says it will provide an updated number for the remainder of 2024 with that.

Unknown Executive: Okay, that's great.

Speaker Change: Okay, that's great.

John Sclodnick: That's it for me. Our next question comes from John Sclodnick from Dangerdan. Please go ahead with your question. Yeah, thanks. Thanks for taking my questions here. I guess looking at gold fields, it looks like I guess most of the planned drilling is done. Just wondering if you can give any indication on the kind of what you're seeing there. Maybe cut off day for the resource estimate. If you're thinking about using the same resource gold price of 1800, or if you might take that up, and how those call them each test have been going.

Speaker Change: Thank you that's it for me.

John Sklodnik: Our next question comes from John Sklodnik from Desjardins. Please go ahead with your question.

Speaker Change: Our next question comes from John squad, Nick from Asia, Dan. Please go ahead with your question.

John Sklodnik: Yeah, thanks. Thanks for taking my questions here. I guess looking at the gold fields, it looks like I guess most of the planned drilling is done. Just wondering if you can give any indication of kind of what you're seeing there, maybe a cut-off date for the resource estimate, if you're thinking about using the same resource gold price of $1800, or if you might take that up, and how those column leach tests have been going.

Speaker Change: Yeah. Thanks, Thanks for taking my questions here I guess looking at gold fields here. It looks like I guess most of the the planned drilling is done I'm. Just wondering if you can give any indication on kind of what youre seeing there maybe cut off date for the resource estimate.

Speaker Change: If youre thinking about using the same resource gold price of 1800 or if he might take that up.

Speaker Change: And how those column Leach test have been going.

Paul Tomory: Yeah, so I'll remind because we did that pivot on Gold Field, what we're looking for here is a principally run of mine oxide resource. So we had to prove to ourselves two or three key things. One is that we have sufficient oxide material. Having temporarily put the sulfides on the shelf, we continue to drill. And we are adding to our internal view on the quantity there. And the column leash tests are going extremely well. We're getting recoveries in line with what I would have expected for run-of-mine Nevada oxide. So those are going very well. In terms of drilling, we continue; we will do more drilling.

Paul Tomory: Because we did that pivot on Goldfield, what we're looking for here is a principally run-of-mine oxide resource. We had to prove to ourselves 2 or 3 key things.

Speaker Change: So a reminder, because we did that pivot uncles feel what we're looking for here is a.

Speaker Change: Principally run of mine oxide resource. So we have to prove to ourselves two or three key things. One is that we have sufficient oxide material, having temporarily put the sulfides on the shelf we continue to drill.

Paul Tomory: One is that we have sufficient oxide material, having temporarily put the sulphides on the shelf. We continue to drill, and we are adding to our internal view of the quantity there. The column leach tests are going extremely well. We're getting recoveries in line with what I would have expected for a run-of-mine Nevada oxide. Those are going very well.

Speaker Change: <unk>.

Speaker Change: We are adding to our internal view on the quantity there and the column Leach tests are going extremely well, we're getting recoveries in line with what I would've expected for run of mine, Nevada oxide. So those are going very well in terms of drilling we continue we will do more drilling.

Paul Tomory: We will do more drilling this year, and we will incorporate the remainder of that drilling into our resource estimate. With that resource estimate, we'll also put out what the recoveries look like, a high-level view of a flow sheet, and then a path forward on engineering and a potential path to execution. Your second question there is, would we use a higher gold price for the resource at Goldfield? Potentially, a fairly easy, easily digestible project.

Paul Tomory: This year, and we will incorporate the remainder of that drilling into our resource estimate. With that resource estimate, we'll also put out what the recoveries look like, a high-level view on a flow sheet. And then a path forward on engineering and potential path execution. Your second question there is, what do we use a higher gold price for the resource that Gold Field potentially? I mean, it's a relatively low risk in Nevada, fairly easily digestible project. We haven't made that decision yet, but certainly I think what you're asking is a good question. We're going to sing logic as well.

Speaker Change: This year and we will incorporate the remainder of that drilling into our resource estimate with a resource estimate will also put out what the recoveries looked like a high level view on our flow sheet.

Speaker Change: And then a path forward on engineering and.

Speaker Change: Potential path execution. Your second question there was what do we use a higher gold price for the resource at goldfield potentially I mean, it is a relatively low risk in Nevada.

Paul Tomory: We haven't made that decision yet. But certainly, I think what you're asking is a good question. We're going through the same logic as well.

Speaker Change: It's fairly easy easily digestible project, we haven't made that decision yet, but certainly I think what you're asking is a good question where were going through the same logic as well.

John Sclodnick: Okay, I appreciate that color and looking forward to the update there.

John Sklodnik: Okay, yeah, no, appreciate that, that color. I'm looking forward to the update there. I guess one other one for me. This is just kind of an annoying modeling one, but depreciation has been trending a bit below guidance, and they're just wondering if that's going to pick up in the 2nd half, or if you're kind of going to be targeting the low end of that depreciation guidance range.

Speaker Change: Okay, Yeah, no I appreciate that that color and looking forward to the update there.

Paul Tomory: I guess one other one for me is just kind of an annoying modeling one, but the depreciation has been trending a bit below guidance. And they're just wondering if that's going to pick up in the second half or if you're kind of, you know, going to be targeting the low end of that depreciation items range. Yeah, I mean, I think it's probably having towards the lower end of it, you know, melt mill again with the increase in it reserves at the end of last year brings down that depreciation a little bit. I will pick up a bit in the second half of the year as we sell more material at melt mill again, but I think we're heading towards the lower end of the range of that.

Speaker Change: I guess one other one for me I'm just kind of a.

Speaker Change: Doing modeling one but that depreciation has been trending a bit below guidance. Just wondering if that's going to pick up in the second half or if youre kind of you know.

Speaker Change: We're going to be targeting the low end of that depreciation guidance range.

Ryan Snyder: Yeah, I mean, I think it's probably heading towards the lower end of it. You know, Milt Milligan with the increase in reserves at the end of last year brings down that depreciation a little bit. It will pick up a bit in the second half of the year as we sell more material at Milt Milligan, but I think we're heading towards the lower end.

Speaker Change: Yeah, I mean, I think it's probably heading towards the lower end of it.

Speaker Change: Mount Milligan with the increase in reserves at the end of last year brings down that depreciation a little bit it will pick up a bit in the second half of the year as we sell more material at Mount Milligan.

Speaker Change: But I think we're heading towards the lower end of the range on that yet.

John Sclodnick: Okay, I appreciate that. And yeah, Roger, that's my melt milling question.

John Sklodnik: Okay, I appreciate that. And yeah, Raj asked my Mel Milligan question, so good for me. Thanks, guys.

Speaker Change: Okay, I appreciate that and yeah definitely Mount Milligan question. So good for me thanks, guys.

Unknown Executive: So good for me.

Mike Parking: Thanks, guys. Our next question comes from Mike Parking from National Bank. Please go ahead with your question. Hi, guys. A couple of questions for me. Could you first start off? Well, there's quite a few four spires in BC. Are you seeing any impact at site or at risk of being able to move material in or it? Thanks for the question. We pay very close attention to that, of course. At this moment in time, we're actually category two, which is fairly low risk. It's not the lowest category one would be. There was a period of time earlier in the quarter.

Michael Parkin: Our next question comes from Mike Parkin from National Bank. Please go ahead with your question.

Speaker Change: Our next question comes from Mike Parkin from National Bank. Please go ahead with your question.

Michael Parkin: Hi guys, a couple of questions for me. Could you first start off by saying there are quite a few forest fires. In BC, are you seeing any impact at sites or at risk of being able to move material in or out?

Mike Parkin: Hi, guys.

Mike Parkin: Couple of questions for me could you first start off well, there's quite a few forest fires.

Speaker Change: In D. C are you seeing any impact at.

Speaker Change: Or you are at risk of being able to move material you know route.

Paul Chawrun: We, thanks for the question. We will pay very close attention to that, of course.

Speaker Change: We thanks for the question, we pay very close attention to that of course at this moment in time, where actually category too which is fairly low risk its not the lowest category. One would be are there was a period of time earlier in the quarter. We were at category three there were a number of fires.

Paul Tomory: We were at Category three. There were a number of fires; you know, we had the fire in Jasper and some of the other locations. But no, that's not an issue in our locale at Mount Milligan. And back in April, we had a fire relatively close to Indaka when we were on alert for evacuation there, but that didn't need to happen. And you can just remind us in terms of like the force fire seasonality. Is that something that generally kind of continues through Q3? And then, as you get into, like, probably when guessing, kind of late Q3, it dies down and Q4.

Speaker Change: We had the fire in Jasper and some of the other locations, but no that's not an issue in our in our locale at Mount Milligan and back.

Speaker Change: Back in April we had a fire relatively close to Endako when we were on.

Speaker Change: We were on alert for for evacuation, there, but that didn't need to happen.

Speaker Change: And can you just.

Speaker Change: Remind us in terms of like the forest fire seasonality is that something that generally kind of continues through Q3, and then as you get into like probably I'm guessing kind of late Q3. It dies down in Q4, it's like a non issue with like snowfall.

Paul Tomory: It's like a non-issue with like snowfall. Well, definitely Q4; it's a non-issue. That's why to answer that is we're in a bit of a different climate change. It's always been out in Western Canada that you had made June was to high risk period right after the fresh head. But that being said, we've seen risks right early in April, right on through to August and September in the past, so we're on alert right through. Last year, the law was worse for us. Yeah, the BC was worse, but it's also where you are in BC. At this moment in time, it's not as high risk as it has been in the past in the past, in the past of the summer.

Speaker Change: Well definitely in Q4, it's a non issue.

Speaker Change: The.

Speaker Change: Best way to answer that is where we are in a bit of a different climate change. It's always been out in Western Canada that you had may June was the high risk period right. After the the fresh at.

Speaker Change: But that being said, where we seen risks right early in April right on through August and September in the past. So we're on alert right through.

Speaker Change: Okay.

Speaker Change: There was a lot worse for us.

Speaker Change: Yeah, you see was <unk> was worse, but it's also where you are and see.

Paul Chawrun: At this moment in time, we're actually in Category 2, which is fairly low risk. It's not the lowest that Category 1 would be. There was a period of time earlier in the quarter when we were at Category 3. There were a number of fires. Now, you know, we had the fire in Jasper and some other locations, but no, that's not an issue in our locale at Mount Milligan. And back in April, we had a fire relatively close to Ndako when we were there. We were on alert for an evacuation there, but that didn't need to happen.

Speaker Change: At this moment in time, it's not as high risk as it has been in the past through in the past is this summer.

Paul Chawrun: And can you just remind us in terms of like the forest fire seasonality, is that something that generally kind of continues through Q3 and then, I'm guessing, kind of late Q3 it dies down, and Q4 it's like a non-issue with like snowfall?

Paul Chawrun: We'll definitely queue for it. It's a non-issue. The best way to answer that is that we're in a bit of a different climate change. It's always been out in Western Canada that you had May, June was the high risk period right after the fresh ad. But that being said, we've seen risks right early in April, right on through to August and September in the past, so we're

Unknown Executive: Okay.

Speaker Change: Okay.

Paul Chawrun: Just circling back like you're making some pretty impressive cost improvement, success at Mount Milligan. Some you're certainly highlighting is some low hanging fruit on the site to our last year with respect to the mining cost improvement. Can you give us a bit more color on what are the initiatives like focus to that? Is it like I know tire lights was I think something standing water on roads improvement? That seemed like some kind of low hanging fruit from site to her. Can you just give us some high level of like where you're focusing on your term and where you expect to can realize those things?

Paul Chawrun: Last year was a lot worse for us. Yeah. BC was BC was worse, but it's also where you are. At this moment in time, it's not as high risk.

Speaker Change: Just circling back like you are making some pretty impressive cost improvement success at Mount Milligan something.

Michael Parkin: Circling back, you're making some pretty impressive cost improvement success at Mt. Milligan.

Speaker Change: Certainly we're highlighting your some low hanging fruit.

Speaker Change: On the site tour last year with respect to the mining cost improvement can you give us a bit more color on what are the initiatives like focus that is it like I know tire light was I think something standing water.

Paul Chawrun: You guys certainly were highlighting some low-hanging fruit on the site tour last year. With respect to the mining cost improvement, can you give us a bit more color on what the initiatives are? I know tire light was, I think, something related to standing water on the roads improvement. That seemed like some kind of low hanging fruit from the site tour. Can you just give us some high level of like where you're focused in the near term and where you expect to kind of realize those savings?

Speaker Change: On roads improvement.

Speaker Change: That seemed like some kind of low hanging fruit from say two or.

Speaker Change: Can you just give us some high level, where your focus and your German where you expect to kind of realize you'll season.

Paul Chawrun: Yeah, so there is always some opportunity on consumables like tires and diesel. Perhaps a little bit on powder factor, although we are very careful on fragmentation since that's the main goal. But the bulk of the gain is going to come from improving the load haul cycle production and productivity, and that's actually already been happening at site. Why we're not seeing in the unit operating costs for the quarter is because we did have some residual costs on equipment, some major component change outs, so it doesn't reflect in the operating costs. And so going forward, it's really going to come from the load haul cycle itself, and I'm improving on all the various components there.

Paul Chawrun: Yeah, so there is always some opportunity on consumables like tires and diesel.

Speaker Change: Yeah. So there is always some opportunity on on consumables like tires and and diesel.

Paul Chawrun: Perhaps a little bit on the powder factor, although we've got to be very careful on fragmentation since that's the main goal. But the bulk of the gain is going to come from improving the load haul cycle production and productivity, and that's actually already been happening at the site. Why we're not seeing in the unit operating costs for the quarter is because we did have some residual costs on equipment, some major component change outs, so it doesn't reflect in the operating costs.

Speaker Change: Perhaps a little bit on powder factor, although we'd rather be very careful on fragmentation since that's the main goal.

Speaker Change: But the bulk of the gain is going to come from improve.

Speaker Change: Improving the load haul cycle production and productivity and that's actually already been happening at site why we're not seeing in the up and the unit operating cost for the quarter is because we did have some residual costs on equipment, some sort of major component change outs.

Paul Chawrun: And so going forward, it's really going to come from the load haul cycle itself and improving all the various components there. That's where the biggest ticket is. And then, of course, some of the other items like the consumables, as you pointed out.

Speaker Change: So it doesn't reflect in and the operating costs and so going forward, it's really going to come from the load to load haul cycle itself and improving on all the various components. There that's where the that's where the biggest ticket is and then of course some of the other items like like the consumables is as you pointed out.

Paul Chawrun: That's where the biggest ticket is, and then, of course, some of the other items like the consumables, as you point. You know, it's like the addition of making the pit bigger. Does that? I remember from site, I think it would, you know, the way I would kind of summarize it was, if you guys were expecting the equipment, you wouldn't have necessarily picked the equipment that's there now. It would seem kind of the wrong size for the operation. Does that? Like with this expansion, you're talking about in pit sizes. That. But, you know, make use of that underutilized scale of the fleet.

Paul Chawrun: It's like the efficiency of making the pit bigger. Does that, I remember from site, I think it would, you know, the way I would kind of summarize it was, if you guys were expecting the equipment, you wouldn't necessarily pick the equipment that's there now. It would seem kind of the wrong size for the operation. Does that.

Speaker Change: Unless I see a vision of making the pit bigger.

Speaker Change: Does that IRA.

Speaker Change: I remember from site.

Speaker Change: I think it would you know the way I would kind of summarize it was if you guys were stacking equipment, you wouldnt necessarily pick the equipment. That's there now.

Speaker Change: It would seem kind of the wrong size or the operation does that.

Paul Chawrun: Like with this expansion you're talking about and pit sizes that, you know, make use of that underutilized scale of the fleet? Or are you all still looking to, as you know, assets mature in terms of rolling stock? Do you look to optimize scale going forward?

Speaker Change: With this expansion you're talking about in pit size does that.

Speaker Change: You make use of that under utilized scale of the fleet or are you still looking to like as you know assets mature in terms of rolling stock.

Paul Chawrun: Or are you still looking to like as assets mature in terms of rolling stock, do you look to optimize scale going forward? Yeah, that's a great question. So, if you were to start fresh, you might look at a different fleet. Of course, probably the biggest one that I would change it right away would be the loaders; the use of the loaders, the 994 is in the pit. But that's what we're working with. So going forward, we'll optimize those. In terms of the change out of the fleet proper, we need to do the decision to capital allocation decision based on what we have.

Speaker Change: You look to optimize scale going forward.

Paul Chawrun: Yeah, that's a great question. So, if you were to start fresh, you might look at a different fleet. Of course, probably the biggest one that I would change right away would be the loaders, the use of the loaders, the 994s, and the pit. But that's what we're working with. So going forward, we'll optimize those. In terms of the change out of the fleet proper, we need to make the decision, the capital allocation decision based on what we have.

Speaker Change: Yes, that's a great question so.

Speaker Change: If you were to start fresh you might look at a different fleet of course, probably the biggest one that I would change it right away would be the loaders did use of the loaders to 99 four is in the pit.

Speaker Change: But that's what we're working with so go and going forward, we will optimize those in terms of the change out of the fleet proper we need to do the decision to capital allocation decision based on what we have and for the long term expansion of course, there's a number of different options. We can take a look at expand extending the current fleet. We can take a look at a larger.

Paul Chawrun: And for the long-term expansion, of course, there's a number of different options. We can take a look at expanding the current fleet. We can take a look at a larger, a larger truck size. But then, of course, a larger truck size. You then have to take a look at what the overall productivity is and where you're coming from the different face advance. And you have a little bit less optionality on that. So we're looking at all these options. But I think the overarching component of our current stock and then going forward, what would make the most sense, you need to take a look at what we have today and use it in your capital allocation.

Paul Chawrun: And for long-term expansion, Of course, there's a number of different options. We can take a look at extending the current fleet, we can take a look at a larger truck size, but then, of course, the larger your truck size, you then have to take a look at what the overall productivity is and where you're coming from in the different phase advances, and you have a little bit less optionality on that.

Speaker Change: Our larger truck size, but then of course the larger your truck size does.

Speaker Change: Does that have to take a look at what the overall productivity isn't where you're coming from the different face advanced and you have a little bit less optionality on that so we're looking at all these options, but I think the overarching component of our current stock and then going forward what would make the most sense you need to take a look at what we have today and use it in your capital allocation.

Paul Chawrun: So, we're looking at all these options. But I think the overarching component of our current stock and then going forward, what would make the most sense, you need to take a look at what we have today and use it in your capital application. That's far and away the most important variable.

Unknown Executive: That's far and away the most important variable. Okay, thanks. Thanks.

Speaker Change: Far and away the most important variable.

Michael Parkin: Okay, thanks. Thanks. That's it for me.

Speaker Change: Okay, great. Thanks, that's it for me.

Unknown Executive: That's it from me.

Brian Macarthur: Our next question, Brian MacArthur from Rayland-Jews. Good morning, and thank you for taking my question. It relates back to the Mali operations. And again, the study. You've talked a lot about the potential at Langloth, and it's only working at 30% of capacity. When you come out with the details, I assume we're going to get a Thompson Creek study, which is sort of apples to apples to what we did before. But the second part of it at Langloth, in that analysis, are you just going to assume the integration of Thompson Creek? Or given, I think there's even more excess capacity. Does the fact that you can actually put the Thompson Creek stuff in allow you to go out and get more third-party materials?

Brian Macarthur: Our next question comes from Brian MacArthur from Raven Drew. Please go ahead with your question.

Speaker Change: Our next question comes from Brian Macarthur from Raymond James. Please go ahead with your question.

Brian Macarthur: Good morning, and thank you for taking my question. It relates back to the MOLLE operations and again the study. You've talked a lot about the potential at Langlois, and it's only working at 30% of capacity. When you come out with the details,

Brian Macarthur: Good morning, and thank you for taking my question.

Brian Macarthur: It relates back to the moly operations and again the study you've talked a lot a bit the potential at Lange lost and that's really working at 30% of capacity.

Speaker Change: When you come out with the details.

Brian Macarthur: I assume we're going to get a Thompson Creek study, which is sort of apples to apples to what we did before. But the second part of it at Langloss, in that analysis, are you just going to assume the integration of Thompson Creek or, given I think there's even more excess capacity, does the fact that you can actually put the Thompson Creek stuff in allow you to go out and get more third-party materials?

Speaker Change: I assume we're going to get at Thompson Creek study, which is sort of apples to apples to what we did before but the second part of it at Lange loss in that analysis are you just going to assume the integration of Thompson Creek or given I think theres, even more excess capacity does the fact.

Speaker Change: You can actually put the Thompson Creek stuff in allow you to go out and get more third party materials. So we'll not only get the benefit of the.

Brian Macarthur: So we'll not only get the benefit of the Thompson Creek material over fixed costs over larger volumes and things like that, but there'll be another uptick. Is that what we're getting from the Langloss study or to the extent you can comment on that?

Paul Tomory: So we'll not only get the benefit of the Thompson Creek material over six costs, over larger volumes and things like that. But there'll be another uptick. Is that what we're getting on the Langloth study, or to the extent you can come on on that and be helpful? Yeah, I think you've described the strategy well. One of, I'd say that the most important component of our thinking on the Militant Business Unit, meaning the integrated Thompson Creek Langloth operation, is that Langloth is the principal value driver; it's not the only value driver, but it's the principal value driver.

Speaker Change: Thompson Creek material over fixed costs over larger volumes and things like that but it'll be another uptick is is that what we're getting on the language study or to the extent you can comment on that would be helpful.

Paul Tomory: Yeah, I think you've described the strategy well. One of, I'd say that the most important component of our thinking on the Malibu Business Unit, meaning the integrated Thompson Creek and Langeloth operation, is that Langeloth is the principal value driver. It's not the only value driver, but it's the principal value driver.

Speaker Change: Yeah, I think you've described the strategy well.

Speaker Change: One of them.

Speaker Change: I'd say that the the most important component of our thinking on the molybdenum business unit, meaning the integrated Thompson Creek Langill off operation is that learning to loss is the principal value driver is not the only value driver, but it's the principal value driver and by utilizing that fixed cost leverage and increasing utilization.

Paul Tomory: And by utilizing that fixed cost leverage and increasing utilization of the capacity there, we not only create a strong EBITDA business, but we also, to a large degree, insulate ourselves from fluctuations in the militant price because of the way we would purchase concentrate up from a third party and then sell it onward to the steel makes. So the strategy here is use Thomson Creek as a significant component of filling the capacity at Langloft. So, as you pointed out, we're roughly running at one third capacity in broad brush terms. Thomson Creek would fill the second third, which would then allow us to fill the final third with third party material and particularly dirtier or higher copper content cons, where we can charge a bigger spread, a bigger TCR.

Paul Tomory: And by utilizing that fixed cost leverage and increasing utilization of the capacity there, we not only create a strong EBITDA business, but we also, to a large degree, insulate ourselves from fluctuations in Malibu prices because of the way we would purchase concentrate from third parties and then sell it onward to the steel makers. So the strategy here is Use Thompson Creek as a significant component of filling the capacity at Langlois. So, as you pointed out, we're roughly running at one third capacity in broad terms.

Speaker Change: The capacity there, we not only create a strong EBITDA business. While we also to a large degree insulate ourselves from fluctuations in molybdenum price because of the way. We we would purchase concentrate from a third party and then sell it on where to the steelmakers.

Speaker Change: So the strategy here is used Thompson Creek as a significant component of filling the capacity at language. So as you pointed out we're roughly running a one third capacity in broad brush terms Thompson Creek would fill the second third which would then allow us to fill the final third with third party material.

Paul Tomory: Thompson Creek would fill the second third, which would then allow us to fill the final third with third-party material, and particularly dirtier or higher copper content cons where we can charge a bigger spread, a bigger TCRC because we have the very clean con coming from Thompson Creek. When you look at the world of molybdenum,

Speaker Change: And particularly <unk>.

Speaker Change: <unk> or higher copper content cons, where we can charge a bigger spread a bigger T. CRC because we have the very clean call him coming from Thompson Creek. When you look at the world of molybdenum.

Paul Tomory: Because we have the very clean con coming from Thomson Creek, when you look at the world of molybdenum, interestingly, the two cleanest cons out there are actually Thomson Creek and Indaco. So the Thomson Creek feed, the con from there will allow us significant flexibility in blending in order to fill that final third. So yes, the answer to your question, which you kind of previewed there, is that study will be a standalone mine feasibility study with its accompanying NI 43-101, but we will have an entire other section showing the economics of the integrated whole Thomson Creek and Langloft.

Paul Tomory: Interestingly, the 2 cleanest cons out there are actually Thompson Creek and Endacco. So the Thompson Creek feed, the concentrate from there will allow us significant flexibility in blending in order to fill that final third. So yes, the answer to your question, which you kind of preview here is: that study will be a stand-alone mine feasibility study with its accompanying NI 43-101, but we will have an entire other section showing the economics of the integrated hole at Thomson Creek and Langeloth, and you will see that. The value is generated in

Speaker Change: Interestingly the two cleanest coms out there are actually Thompson Creek in tobacco, So that Thompson Creek feed the con from there will allow us significant flexibility in blending in order to fill that final thoughts. So yes. The answer to your question, which you kind of previewed there is.

Speaker Change: That study will be a standalone mine.

Speaker Change: Feasibility study with its accompanying ni 43, 101, but we will have an entire others section showing the economics of the integrated whole Thompson Creek and Langill, often you will see that.

Paul Tomory: And you will see that the value is generated in significant part by an optimal use of the roasting facility. Right, but just so I'm clear, would that study assume 66% utilization of Langloft? No, you're actually good. Yeah, okay, so you'll be able to do 100, so you'll make assumptions about what you can do on the other side. We'll get to see all that precisely. Yes, but the important part is that Thomson Creek enables that ran from 66 to 100 because you now have a clean con that you can blend with higher copper percentage. So yes, that means we will show a full ramp up.

Speaker Change: The value is generated in significant part by and optimal use of the roasting facility.

Brian Macarthur: But just so I'm clear, would that study assume 66% utilization of Langlois? No, you're actually good. No, much higher, much higher. Yeah, okay. So you'll be

Speaker Change: Right, but just so I'm clear with that study assumes 66% utilization of laying off no how do you actually good.

Speaker Change: Yeah, I heard it right yeah, yeah, okay. So you'll be able to do 100, so you'll make assumptions about what you can do on the other side, we will get to see all of that precisely yet but the.

Paul Tomory: But the important part is that Thompson Creek enables that RAM from 66 to 100 because you now have a clean con that you can blend with higher copper percentage con.

Speaker Change: Gordon part is that Thompson Creek enables that ramp from 66 to 100, because you now have the clean corn, but you can blend with.

Collins: Higher copper percentage Collins.

Brian Macarthur: So yeah, we will show a full ramp up. Perfect.

Speaker Change: So yes, I mean, we will show a full ramp up.

Paul Tomory: Perfect. And again, just to be clear that he said the value add is in treating the dirty con. It's not like you bring Indaco into that something because it's another clean con. So it's still a total standalone unit that you have to look at going forward if you decide to go down that group. Is that fair? Yeah, so I think that if you were to look at this very, very high level strategically, Indaco has no place in the plan until Thomson Creek is exhausted. So if you look at a perfect situation here, you run Thomson Creek, and then whatever 15, 20 years later, you then bring Indaco into the mix as the next source of clean con, which you can then use. It would not be good for us to open both together.

Brian Macarthur: And again, just to be clear, as you said, the value add is in treating the dirty cons. It's not like you bring in DACO into that something because it's another clean con. So it's still a total standalone unit that you have to look at going forward if you decide to go down that route. Is that fair?

Speaker Change: Perfect and again just to be clear that he said the value add is in treating the dirty kind, it's not like you can bring in Dhaka window that something 'cause. It's another clean tons. So its still a total standalone unit that you have to look at going forward. If you decided to go down that route is that fair.

Paul Tomory: Yes, I think that if you were to look at this very, very high level strategically, DACO has no place in the plan until Thompson Creek is exhausted. So if you look at a perfect situation here, you run Thompson Creek, and then whatever 15, 20 years later, you then bring DACO into the mix as the next source of clean coal, which you can then use. It would not be good for us to open both of them together.

Speaker Change: Yeah. So I think that if you were to look at this very very high level strategically Endako has no place in the plan until Thompson Creek is exhausted. So if you look at a perfect situation here you run Thompson Creek and then whatever 15 20 years later, you then bringing darko.

Speaker Change: Into the mix as the the next source of clean corn, which you can then use it would not be good for us to open both together.

Unknown Executive: Great, that's what I thought, but I just want to confirm. Thanks very much. That's very, very helpful. Thanks. Once again, if you would like to ask a question, please press star and then one. To remove yourself from the question key, you may press star into. Once again, that is star and then one to join the question key.

Brian Macarthur: Great. That's what I thought, but I just wanted to confirm. Thanks very much. That's very, very helpful.

Speaker Change: Great that's what I thought, but I just wanted to confirm thanks very much that's very very helpful.

Paul: Thanks, Paul.

Jeremy Hoy: Once again, if you would like to ask a question, please press star and then one to remove yourself from the question, or you may press star and two. Once again, that is star and then one to join the question. And our next question comes from Jeremy Hoy from Canaccord Genuity. Please go ahead with your question.

Speaker Change: Once again, if he would like to ask a question. Please press star and then one to remove yourself from the question you May press star into once again that is star and then one to join the question queue.

Jeremy Hoy: And our next question is Jeremy Hoy from TAN Accord Genuity. Please go ahead with your question. Hi, Pauline. Thanks for taking my question. You guys have made some good progress with your optimization study at Mount Milligan. We saw that in your per time processing costs this quarter. You expect to see continuing improvements in the processing throughout the year, or have they largely been realized? And am I correct in assuming that those were not factored in when providing guidance at the beginning of the year for cost for the operation? And that's it. Okay. Thanks, Jeremy.

Speaker Change: And our next question comes from Jeremy Hawaii from Canaccord Genuity. Please go ahead with your question.

Jeremy Hoy: Hi Paul and team, thanks for taking my question. You guys have made some good progress with your optimization study at Mount Milligan. We saw that in your per-time processing costs this quarter. Do you expect to see continuing improvements in processing throughout the year, or have they largely been realized? And I am correct in assuming that those were not factored in when providing guidance at the beginning of the year for costs for the operation. And that's it.

Jeremy Hawaii: Alright, Thanks for taking my question.

Jeremy Hawaii: You guys have made some good progress with your optimization study.

Speaker Change: Milligan, we saw that in your <unk>.

Speaker Change: Per tonne processing costs this quarter.

Speaker Change: Do you expect to see continuing improvements and the processing throughout the year or or have been largely been realized.

Speaker Change: And am I.

Speaker Change: And correct in assuming that those were not factored in when.

Speaker Change: Providing guidance at the beginning of the year for cost for the operation.

Speaker Change: And that's it.

Speaker Change: Oh.

Paul Chawrun: Thanks. Okay. Thanks, Jeremy. So.

Jeremy: Okay. Thanks, Jeremy so.

Paul Chawrun: So, first, no, we did not include these gains in our guidance at the beginning of the year. And so, and then to answer your question, are we going to continue to see gains? So this is a very long term view. And so we had some low hanging fruit, recycling some of the some of the steel, which was a big gain. We're looking at optimization of our concentrate qualities. So that actually improves our overall gold. And so that's why you're seeing some of the gains in the plant. And yes, we're looking at a number of different optimization programs to improve the plant overall, both on recoveries throughput.

Paul Chawrun: First, no, we did not include these gains in our guidance at the beginning of the year. Are we going to continue to see gains? This is a very long-term view.

Speaker Change: First no. We did not include these gains in our guidance at the beginning of the year.

Speaker Change: And so and then to answer your question are we going to continue to see gains. So this is a very long term view.

Speaker Change: And so we had some low hanging fruit.

Paul Chawrun: We had some low-hanging fruit, recycling some of the steel, which was a big gain. We're looking at optimizing our concentrate qualities so that actually improves our overall output. That's why you're seeing some of the gains in the plant. Yes, we're looking at a number of different optimization programs to improve the plant overall, both on recoveries, throughput, and also the mine-to-mill because if we can have a steady state and have less disruptions in the plant, that actually helps the overall cost.

Speaker Change: Recycling some of the some of the steel which was a big game we're.

Speaker Change: We're looking at optimization of our concentrate qualities, so that actually improves our overall gold and.

Speaker Change: So thats why youre seeing some of the gains in the plant and yes, we're looking at a number of different optimization programs to improve the plant overall, both on recoveries throughput.

Paul Chawrun: And also the mind to mill, because if we can have a steady state and have less disruptions in the plant, that actually helps you overall costs. And then lastly, through the winter, that was a problematic area, and we've done quite a lot of gains there. So yes, we can expect to see continuous improvement in the plant.

Jeremy: And also the mine to mill, because if we can have a steady state and have less disruptions in the plant.

Paul Chawrun: Lastly, through the winter, that was a problematic area, and we've made quite a lot of gains there. Yes, we can expect to see continuous improvement in the plant, but just overarching, this is a comprehensive program to put Mt Milligan into a world-class operation, and this is key for the long-range plant. We'll be adopting those operating metrics into the PEA and into the plan itself going forward with these demonstrable improvements, and I'll use this as an opportunity.

Jeremy: That actually helps the overall.

Speaker Change: Cost and then lastly through the winter that was a problematic area you don't quite a lot of gains there. So yes, we can expect to see continuous improvement in the plant, but just overarching. This is a comprehensive program to put Mount Milligan into into a world class operation and this was key for the long range plan and so we will be adopting those.

Paul Chawrun: But just overarching, this is a comprehensive program to put mountain elegant into a world class operation. And this was key for the long range plan. And so we'll be adopting those operating metrics into the PGA into the plant itself going forward with these demonstrable improvements.

Speaker Change: Operating metrics into the PGA and into the plant itself going forward with.

Speaker Change: With these demonstrable improvements in I'll use this as an opportunity to plug the P. A what we're looking at here at Mount Milligan.

Paul Tomory: And I'll use this as an opportunity to plug the PGA. What we're looking at here at Mount Milligan is a very significant potential mine life extension beyond the 2035 reserve, incorporating the drilling that I mentioned earlier. We're doing a lot of drilling. We're getting very good results on that. So we're looking at a resource model update. We're looking at a reminder that we're currently capped on reserves with paling capacity. We're looking at incremental opportunities to store tailings, and we're making good progress on that. And lastly, as Paul said, we're incorporating these new operating metrics into the way we look at mine and plant operations for consideration in that study.

Paul Tomory: And I'll use this as an opportunity to plug the PEA. What we're looking at here at Mount Milligan is a very significant potential mine life extension beyond the 2035 reserve, incorporating the drilling that I mentioned earlier. We're doing a lot of drilling, and we're getting very good results with that. So we're looking at a resource model update. We're looking at, I'll remind you that we're currently capped on reserves with tailings capacity. We're looking at incremental opportunities to store tailings, and we're making good progress on that.

Speaker Change: Is a very significant potential mine life extension beyond 2035 reserve incorporating the drilling that I mentioned earlier, we're doing a lot of drilling we're getting very good results on that so we're looking at our resource model update we're looking at.

Paul: I'll remind that we're currently capped on reserves with tailings capacity, we're looking at incremental opportunities to store tailings and we're making good progress on that and lastly, as Paul said, we're incorporating these new operating metrics into the way, we look at mine and plant operations.

Paul Tomory: And lastly, as Paul said, we're incorporating these new operating metrics into the way we look at mine and plant operations for consideration in that study. So things are going well on that study. We're hard at work on it, and we still need several months to do it, but we're very encouraged by what we're seeing.

Speaker Change: For consideration in that study so things are going well on that studying where we're hard at work on it and we still need.

Jeremy Hoy: So things are going well on that study. We're hard at work on it, and we still need several months to do that, but we're very encouraged by what we're seeing. Great. Thanks for the color, and we'll look forward to see for the results from that.

Paul: Several months to do that but we're very encouraged by what we're seeing.

Jeremy Hoy: Okay, great. Thanks for the color, and we'll look forward to seeing further results from that.

Speaker Change: Okay, great. Thanks for the color and we'll we'll look forward to see further results from that.

Speaker Change: That's right.

Unknown Executive: And ladies and gentlemen, in showing no additional questions, we'll conclude today's question-and-answer session and today's conference call. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: And ladies and gentlemen, if there are no additional questions, we'll conclude today's question and answer session and today's conference call. You may now disconnect your line. Thank you for participating and have a pleasant day.

Speaker Change: And ladies and gentlemen in showing no additional questions. We will conclude today's question and answer session and today's conference call.

Speaker Change: You may now disconnect your lines. Thank you for participating and have a pleasant day.