Q3 2024 Centerra Gold Inc Earnings Call
Thank you for standing by this is the conference operator welcome to this empirical third quarter 'twenty 'twenty four conference call. As a reminder, all participants are in listen only mode and the call.
France is being recorded.
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Speaker Change: I would now like to turn the conference over to Lisa Wilkinson, Vice President of Investor Relations and corporate communications with some terrible. Please go ahead.
Lisa Wilkinson: Thank you operator and good morning.
Welcome to Houston Miracle third quarter, 'twenty 'twenty four results conference call.
Lisa Wilkinson: And me on the call today are Paul Tamari, President and Chief Executive Officer, Paul Charron, Chief Operating Officer, and Ryan Snyder Chief Financial Officer.
Lisa Wilkinson: Ah released yesterday detailing our third 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.
Lisa Wilkinson: All figures are in U S dollars unless otherwise noted.
Presentation slides accompanying this webcast are available on Pinterest website. Following 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, maybe forward looking and are subject to risks, which may cause our actual results to differ from those expressed or implied.
Lisa Wilkinson: Please refer to the cautionary statements included in the presentation as well as the risk factors set out in our annual information form.
Lisa Wilkinson: 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.
Speaker Change: I will now turn the call over to call Tomorrow.
Speaker Change: Thanks, Lisa and good morning, everyone.
Speaker Change: We continued to deliver consistent operating performance producing over 93000 ounces of gold.
Speaker Change: 7 million copper third quarter.
Speaker Change: We're on track to meet our consolidated production cost guidance for the year.
Speaker Change: We benefited from margin expansion driven by stable cost performance and elevated gold price environment.
Speaker Change: That's the plan, we've returned to strong free cash flow generation this quarter.
Speaker Change: Even after spending approximately 32 million on the restart of operations at Thompson Creek.
Speaker Change: Grew our cash and cash equivalents of $604 million.
Speaker Change: Sure.
Over the last year, we have made significant progress delivering on our strategic plan.
Speaker Change: Aimed at maximizing the value of these shops of our portfolio.
Speaker Change: Earlier this year, we secured an additional agreement with Royal gold, providing us the opportunity to evaluate Mount Milligan potential for long term multi decade operations.
Speaker Change: This marked an important initial step stretched on block full value.
Can you talk to your mining jurisdiction.
Speaker Change: Work on the preliminary economic assessment continues.
Speaker Change: To update the large resources all the drilling.
Speaker Change: <unk> identified.
Speaker Change: Identified value add initiatives at the plant and optimize the hard part.
Speaker Change: We expect to complete protection, let's say towards the end of the first half.
Speaker Change: Yeah.
Speaker Change: In September we announced the decision to unlock significant value in our U S operations and restart of operations at Thompson Creek, a progressive ramp production block.
Speaker Change: I'll list the top secret feasibility study and language commercial optimization plan.
Speaker Change: Which combined have robust projects sort of conservative 8% discount rate.
Combined U S. Molybdenum operation is expected to produce an after tax NPV of $472 million in.
Speaker Change: 22% IRR.
Speaker Change: Key contributors as volume just like law, which at full capacity and with the benefit of high quality seed from Foster Creek.
Speaker Change: It's actually to generate approximately $50 million annually.
Speaker Change: There are two key value drivers that allowed extra generous these robust cash flows.
Speaker Change: First is increased capacity utilization.
Speaker Change: Possibly the most concentrated crisis, a landlord who is expected to consist of approximately one third slide by tops at great.
Speaker Change: Approximately two thirds purchased third party providers.
Speaker Change: With increased capacity utilization landlord leverage fixed costs should increase profitability and cash flow.
The second value driver is vertical integration.
Speaker Change: Foster Creek mine, which will produce the highest quality concentrates in the world.
Speaker Change: Let me go off to blend this constant or lower quality third party concentrates.
Speaker Change: As expected to lead to margin improvements.
Also I volume toxic pretty concentrated naval flying a lot to produce an increased volume of higher margin vinyl.
Speaker Change: Products.
Capital investment required to restart operations Oscar is $397 million, which is expected to be spent over the next three years with first production in the second half of 2027.
Speaker Change: With infrastructure already in place Capex is largely derisked is primarily related to stripping.
Speaker Change: We believe that the Thompson Creek capital investment can be funded mostly from cash flow from operations.
Speaker Change: As a result, we expect to maintain a strong cash balance which can be deployed in line with our capital allocation strategy to shareholder returns internal projects and external growth opportunities.
Speaker Change: Our decision to restart operations at Thompson Creek is progressively ramp up production in Bangalore is a key milestone on unlocking significant value normal process.
Speaker Change: As we advance our U S operations. We're also focused on growing our gold exposure in the portfolio.
In addition to the Mount Milligan, Ta, which showcases significant mine life extension you also have oriented growth projects wholesale the candidates in our pipeline.
Speaker Change: We continue to progress our work as it goes through a project in Nevada and expect to release, an initial resource their year end reserve and resource update in early 2025.
Speaker Change: As previously mentioned, we will not be proceeding with that.
Speaker Change: The underground block Cave project instead, we are evaluating alternative technical costs us where the resource.
Speaker Change: Remain optimistic of the future.
Speaker Change: Future source of cool.
Speaker Change: Gotcha.
Speaker Change: Finally, I'd like to touch on some ESG achievements in the quarter.
Speaker Change: As we continue to progress our climate and nature strategy, we are conducting cost benefit analyses of decarbonization.
Identified adverse sites.
Speaker Change: These efforts will guide our decision making.
Speaker Change: So identify classical pathways for reducing GHT emissions.
Speaker Change: Our social preferments team at Mount Milligan I have been working hard alongside our first nation partners and the local school district to develop equal opportunity employment.
Speaker Change: Programs.
Speaker Change: These programs provide hands on experience at our site the ultimate goal of attracting future chapter of the mining industry.
Speaker Change: We are also proud to announce a collaboration with our first nation partners to revamp our Greenpoint training Education earnings program design.
Speaker Change: Designed to remove barriers traditional.
Speaker Change: Lots of patients by equipping them with relevant skills.
Speaker Change: Rest assured placements.
Speaker Change: Lastly, I am proud to announce that Oxy has won 11 awards across three distinguished organizations.
Speaker Change: Efforts in social responsibility.
Speaker Change: These awards recognize our commitment to empower women entrepreneurs and our local communities.
Speaker Change: The first one is cooperative establishes the definitely districts.
Speaker Change: Through initiatives like this we continue to strive to create a lasting positive impact.
Speaker Change: I'll now pass the call over to Paul to walk through our operational performance for the quarter.
Speaker Change: Thanks, Paul.
I'd like to start with Mount Milligan and safety performance.
Paul: The operating team continues to embrace the site wide optimization program, which starts with continuous improvement to our safety performance.
Paul: The <unk> team has been fully engaged and year to date, we have seen improved safety performance, particularly with the reduction in significant incident appearances on.
Paul: On slide eight we show operating highlights at Mount Milligan for the quarter.
Mount Milligan produced almost 43000 ounces of payable gold and $13 7 million pounds of payable copper in the third quarter.
Paul: Gold and copper sales were up 46% and 21% respectively quarter over quarter, which was anticipated due to the timing of shipments.
Paul: Metal production in the fourth quarter is expected to be slightly higher compared to the previous nine months due to expected higher mill throughput and gold grades.
Paul: Our production guidance remains unchanged at Mount Milligan.
Paul: With that said our gold production is trending towards the lower end of that guidance range.
Paul: In the third quarter.
All in sustaining cost on a byproduct basis were 13 $118 per ounce higher quarter over quarter due to increased sustaining capex.
Paul: We expect all in sustaining cost on a byproduct basis to be lower in the fourth quarter compared to the second and third quarters, driven by higher expected sales and lower expected sustaining capex.
Paul: Our Mount Milligan cost guidance ranges for 2024 are unchanged and we expect the all in sustaining costs at Mount Milligan to be at the low end of our guidance range.
Paul: The site wide optimization program at Mount Milligan continues to progress, we are seeing productivity improvements and the load haul cycle and equipment availabilities at the mine as well as in the plant throughput rates and unit processing costs in the first nine months of 'twenty 'twenty four milling costs at Mount Milligan were $5.
Paul: 56 cents per ton processed 12% lower than the same period last year.
Speaker Change: Now moving onto Oxy.
Speaker Change: On slide nine we show operating highlights at auction for the quarter.
Speaker Change: Third quarter production was over 50000 ounces consistent with last quarter.
Speaker Change: And the first nine months of 2024 auction finished processing inventory that was accumulated during the operations shut down in 2022 and 2023 in.
Speaker Change: In the fourth quarter substantially all gold production is expected to come from lower grade areas of the mine.
Speaker Change: As a result gold production in the fourth quarter is expected to contribute.
Speaker Change: To approximately 15% to 20% of the annual gold production.
Speaker Change: Our 'twenty 'twenty four production guidance at Oxy is unchanged.
In the third quarter, all in sustaining cost on a byproduct basis or $1092 per ounce, which is higher compared to last quarter due to lower sales higher sustaining capex and higher royalty costs, resulting from higher average realized gold prices.
Speaker Change: We expect all in sustaining cost on a byproduct basis to be the highest in the fourth quarter compared to the first nine months of the year driven by lower production due to lower expected grades.
Speaker Change: Suits cost guidance ranges for the full year of 2024 are unchanged. However, we could slightly exceed the cost guidance range due to higher royalties driven by the elevated gold prices.
Speaker Change: As Paul mentioned earlier in September we announced the restart of operations at Thompson Creek in the quarter. The site team transition from early works to full start up.
We now have 140 full time operating personnel on site to electric rope shovels, one drill and nine trucks in operation with four crews detailed engineering for the plant refurbishment has been awarded and the overall project plan is on track.
Speaker Change: In the fourth quarter. Our work is focused on the capitalized stripping continued refurbishment of the existing mobile equipment fleet delivery of new mine mobile equipment.
Speaker Change: An initial engineering work on the plant refurbishment.
I'll now pass it off to Ryan to walk through our financial highlights for the quarter.
Ryan Snyder: Thanks, Paul Slide 11 details our third quarter financial results.
Ryan Snyder: Adjusted net earnings in the third quarter were $39 million or <unk> 19 per share.
Ryan Snyder: In the third quarter sales were 96736 ounces of gold and $14 2 million pounds of copper up, 16% and 21% respectively compared to last quarter.
Ryan Snyder: It was driven mainly by the timing of shipments at Mount Milligan.
Ryan Snyder: The average realized price was 2206 per ounce of gold and $3 37 per pound of copper, which incorporates the existing streaming arrangements at Mount Milligan.
Ryan Snyder: At the molybdenum business unit, approximately $2 4 million pounds of molybdenum, which sold in the third quarter at the windmill facility at an average realized price of $23 27 per pound.
Ryan Snyder: Consolidated all in sustaining cost on a byproduct basis in the third quarter were 1302 per ounce and our full year consolidated cost guidance for unit cost metrics are unchanged.
Ryan Snyder: Slide 12 shows our financial highlights for the quarter.
Ryan Snyder: In the third quarter as planned we returned to strong free cash flow generation cash.
Ryan Snyder: Cash flow from operations on a consolidated basis for the quarter was $104 million and free cash flow was $37 million, which includes spending of $32 million on the restart of operations at the Thompson Creek mine.
Ryan Snyder: In the third quarter, Mount Milligan generated $40 million in cash from operations and $16 million in free cash flow.
Speaker Change: As expected in the third quarter Oxy returned to positive free cash flow after making normal tax and annual royalty payments in the second quarter of 2024.
Speaker Change: We generated $97 million of cash from operations and had free cash flow of $87 million in the third quarter.
Speaker Change: The molybdenum business unit as a whole used $14 million of cash in operations and had a free cash flow deficit of $45 million. This quarter, mainly related to spending on the Thompson Creek restart and an investment in working capital at weight loss.
Speaker Change: Interest income was $7 5 million in the third quarter, which primarily includes interest on bank term deposits. We continue to generate significant interest income on our cash balance.
Returning capital to shareholders remains a key pillar in our disciplined approach to capital allocation.
In the third quarter, we remained active on our share buybacks repurchasing one 7 million shares for total consideration of $12 million.
The board also declared a quarterly dividend of seven Canadian per share.
Speaker Change: System with previous quarters.
Speaker Change: And the first nine months of 2024, we have returned $65 million to shareholders, including $32 million in share buybacks and $33 million in dividend.
Speaker Change: A key focus person Tara is returning capital to shareholders and we expect to remain active on the share buybacks dependent on market conditions.
Speaker Change: At the end of the third quarter, our cash balance was $604 million. This provides us with total liquidity of $1 billion and positions us well to execute on our strategic plan and deliver shareholder value I.
Speaker Change: I will now pass it back to Paul for some closing remarks.
Paul: Thanks, Brian.
Paul: We're committed to achieving strong performance each quarter and creating value for our shareholders.
Paul: We are systematically working through each asset in our portfolio to drive future volume growth since there.
Paul: With that operator, we'll open the call for questions.
Speaker Change: Thank you well now begin the question and answer session.
Speaker Change: Join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request if you're using a speaker phone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
Speaker Change: Our first question is from Raj Ray with BMO. Please go ahead.
Raj Ray: Thank you operator, good morning, Paul and team of.
Raj Ray: I have three questions. If I may the first one is on.
Raj Ray: Your recovery at Mount Milligan, I didn't know that Q3's somewhat.
Raj Ray: There was some oxidized material that impacted recover your goals.
Raj Ray: Going into Q4 or do you expect that to continue.
Secondly, with respect to the cost you mentioned that the processing cost has decreased 12%.
Raj Ray: The first three quarters of this year versus last year.
Raj Ray: If I look at to your mining costs for Mount Milligan.
Raj Ray: Since at least if I compare Q3 over Q.
Raj Ray: It's up almost 14% you can comment on what's driving that questions inquiries on the mining front, whether it's the area you are mining or something else.
Speaker Change: And lastly, I had a question on the inventory levels for gold and copper at Mount Milligan.
Speaker Change: It seems to be increasing trend of it did come down a bit in Q3, but if I look at from Q3 23 and.
Speaker Change: And if my numbers are correct with 16000 ounces and are currently sitting at 30000 ounces of gold in inventory.
Mt Milligan, what's driving that increase and how much of that is going to be coming.
Speaker Change: Coming out of the of the process.
Speaker Change: The normal inventory levels looking at thank you.
Speaker Change: Yeah, Roswell, Yes, we will take those in reverse order so Ryan will take the inventory question sure. Thanks Raj.
Ryan Snyder: I don't think its quite 30000 ounces, but there has been a little bit of a build it it's nothing kind of structural it's just timing of shipment related I would expect that to come down in Q4 based on when the boats are planned.
Ryan Snyder: Shouldnt see that normalize back to previous levels by the end of the year, but it's simply related to wind concentrate makes it through the logistics chain and get Carnival.
Speaker Change: Hi, Raj, yes, okay. So to answer your recovery question and that's why we put a bit of a description in the MD&A. So right now were on the periphery parts of the positive phase six and a little bit in page nine and so we are seeing several percent impact and it's primarily due to the oxides.
Speaker Change: And a little bit of the grade quite hasnt been there as well and so that's why we adjusted we outlined to the low end of guidance on the low end of the range for the rest of the year.
So thats that question.
Speaker Change: Okay and then the other one you asked of him.
Speaker Change: Sorry go ahead.
Speaker Change: No I just wanted to follow up on that so with respect to your.
Speaker Change: Yeah, it's the phase six that you've opened up.
Speaker Change: What he said.
Speaker Change: So you can probably look at the let's call. It. The 2022 Technical report is the mine plan tracking as per a ban or have there been a change of the mine plan since then.
Speaker Change: Okay, Yes from the 2022 Technical report the mine plan has changed and we've opened up and increase the size.
Speaker Change: The overall fit as well.
Speaker Change: Okay. Okay.
Speaker Change: Yeah the basics.
Speaker Change: If you take a look looking north it's kind of at the north end of the of the of the deposit like straight that's pretty much the most north park.
Speaker Change: Okay sounds good.
Speaker Change: Okay, and then to answer your question on on the operating costs. So.
Speaker Change: Thank you Morris, mostly focused on mining, we just had some timing on an equipment refurbishment, primarily some major components theres nothing really changed on the mine plan itself and in fact on a load haul cycle our productivity. When you take a look at all of those key performance indicators. Those are those are on track.
Speaker Change: And we do have a little bit of increase on the consumables, but not a lot.
Speaker Change: So thats to answer that question.
Speaker Change: And what's the timing for the for that coupon refurbishment to be done and the potential decreasing costs.
Speaker Change: Yes that was mostly a Q3 item.
Speaker Change: Okay, sometimes slightly.
Speaker Change: Had extra costs on the lower we had a couple of the engines that needed to be replaced a little bit higher than that that is fluid throughout the year, sometimes you have some quarters higher than others. That's the main reason why the operating costs are a little bit higher.
Speaker Change: Okay sounds good. Thank you very much that's it for me.
Speaker Change: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.
Lawson Winder: Thank you operator, and good morning, Paul and team. Thank you for the update.
Lawson Winder: If I could could I ask you about.
Lawson Winder: The optimization at that mill.
Lawson Winder: What is your latest thinking.
Lawson Winder: The ability to potentially improve the gold recovery on a life of mine basis.
Speaker Change: Yes, so to me the main things we're looking at for the gold is.
Speaker Change: Is it.
Speaker Change: Without getting into too much detail because it is a very complex issue. So at the entity has several different ways that you can recover the gold where were read their main way that we're going to be doing this is being able to adjust the.
Speaker Change: Flotation circuit all the variables all the parameters in real time, and we're setting this up we're actually calling it float IQ that's gonna give us several percent. The other one is we're gonna be looking at optimizing the blend of the concentrate.
Speaker Change: In terms of the actual amount of copper in concentrate we can optimize that that will actually allow us to be able to recover a little bit more of the pyrite, which is where some of the gold is that's a different part of the deposit.
Speaker Change: And then overall just being able to not have the oxide. So that's why you see the numbers lower as we get a little bit deeper in the deposit so it's a timing thing.
Speaker Change: We're never going to be up to 80, 90% to one uncle.
Speaker Change: Yeah.
Speaker Change: What is really about getting several percent.
Speaker Change: Oh, Yeah, I think we get to mid <unk>.
Speaker Change: Yeah.
Speaker Change: I think we can get to the mid Sixty's and maybe to the high mid sixty's by working on all of these different optimization parameters.
And it also does have a little bit of a covenant influence on where we are on the deposit and how we blend some of the higher grade gold and time that blended with the other parts of the ore body.
Speaker Change: Loss and one thing I'll add to that is there's the near term optimization, which is the operations optimization work that we've been doing real time, but there's also the Pea study. We are looking at what capital improvements could be made to the process client to increase throughput and recovery. So there's the near term type initiatives on plant optimization that bolus.
Speaker Change: But there are also long term flow sheet modifications that we're looking at.
Speaker Change: Okay, so even without those longer term flow sheet modifications and you're still thinking up to upper 60% that's actually quite good.
Speaker Change: Do you have a sense of where you might want to push it with some capital investment or is it just too early to tell at this point.
Speaker Change: The capital investment will come from throughput primarily.
Speaker Change: The flow sheet optimization, that's really going to be coming from.
Speaker Change: Just just small incremental percents on improving the overall management of the flotation circuit, having steady safety, we're not there's not really a capital investment is going to improve overall recovery.
Speaker Change: By a significant margin that's going to come through but and we do have some initiatives that are relatively low capital to improve the throughput that we're.
Speaker Change: We're looking at.
Okay, great very intriguing and then on the gym field or sorry, the goldfields resource update that you're anticipating for early next year with the reserve and resource update can we anticipate also getting some color or some idea around how youre thinking about potential development for those resources.
Speaker Change: At the same time or is that something that we might be looking at a little bit later.
And we intend to do both so we intend to put out a resource that'll be likely both oxide and sulfide and as we've mentioned before we're principally looking at an oxide development plan.
Speaker Change: And.
Speaker Change: At the time, when we put out their resource we will also outline our path forward, whether it's further study in drilling.
Speaker Change: Or some sort of plan on development. So yes, we intend to outline our path forward. It won't just be a resource and exclusion of accompanying narrative.
Speaker Change: Okay. That's helpful. And then just finally on capital return if I might.
Speaker Change: Remarkably consistent now for for many quarters and in delivering both share buybacks and maintaining that dividend.
Speaker Change: When you initially initiated the share buyback process I mean, the gold price was nearly $1000 per ounce lower and actually your free cash flow is really improved quite remarkably well what is the likelihood that the buyback could be augmented going forward, particularly in light of some of the competing capital allocation.
That that Youre now embarking on thanks.
Speaker Change: That'll be it for me.
Speaker Change: Yes, that's a good point.
Speaker Change: <unk>.
Speaker Change: As I said in my prepared remarks, when we look at the big picture on capital allocation.
Speaker Change: And with the Thompson Creek development give.
Given the current metal price environment, we think largely speaking we can fund Thompson Creek out of ongoing.
Speaker Change: Free cash flow in other words, not really dipping into the cash balance and that is <unk>.
Speaker Change: While maintaining the dividend and the buyback.
Speaker Change: You'll have noticed that we upped the buyback somewhat in Q3 that is a signal that we we intend to continue buying back at levels higher than Q1, and Q2 more in line with Q3, and certainly depending on how we choose to allocate our capital and here what I'm talking about is <unk>.
Speaker Change: Internal development projects, whether at Milligan <unk> Goldfield will take some capital M&A.
M&A opportunities may take capital, if depending on the extent to which those either organic or M&A opportunities manifest themselves or not depending on which direction. Those take there would be room to further augment the buyback.
The Congress of course is if we have.
Solid.
Speaker Change: Targets for investment whether organic or M&A.
Speaker Change: We might dial a buyback back but in the absence of.
Speaker Change: A clear place to invest the capital the buyback will continue and be augmented as it has in Q3.
Speaker Change: Okay. That's great. Thank you very much.
Speaker Change: The next question is from Jeremy <unk> with Canaccord Genuity. Please go ahead.
Speaker Change: I would call the team. Thanks for taking my questions. Most of them have been answered, but just wanted to see if you had any additional color on the.
Speaker Change: The inflation that you're seeing in Turkey, you mentioned that in past quarters. It was it was mostly offset by the devaluation of the lira, but you didn't see that this quarter.
Speaker Change: And expect that to have an impact going forward. So just appreciate any additional color you might have on that.
Speaker Change: Hi, Jeremy Thanks for the question Yeah.
Speaker Change: Yeah, what we're seeing in Turkey.
Speaker Change: Is it pretty highly inflationary country.
Speaker Change: And for the last couple of years, usually the devaluation of Alere has offset that.
Speaker Change: Or has kind of stabilized over the last six months or so with fiscal policy in the country, but inflation is still pretty elevated and what happens in Turkey is a lot of the labor rates and contract rates get reset at the start of the year and take into account inflation in country. So we're seeing that inflation number outpaced the devaluation of the lira.
Speaker Change: Would expect that costs will step up a little bit and oxy going forward, but we'll wait to see how that shakes out.
Speaker Change: The start of next year I think for this year, we've kind of reiterated our cost guidance should be fine.
Speaker Change: Maybe maybe at the top end or slightly above it if gold stays very high but just driven by royalties not by in country inflation. So it's something we're monitoring that may have an effect next year I don't think it's going to be something crazy, but it is something that we're looking at as we plan for 2025.
Okay. Thank you I'll look to the guidance then and thanks for taking my question.
Jeremy: It's Jeremy.
The next question is from Anita Soni with CIBC World markets. Please go ahead.
Anita Soni: Good morning, Paul and team I, just had a question on OXXO and I was just trying to dig up the.
Anita Soni: Last life of mine plan.
Anita Soni: I'm not sure if it was a year ago or two years ago, but I'm trying to understand what the grades are next year, and whether or not the strip and grade in Q4 I would translate into 2025. That's my first question.
Speaker Change: Yes, thanks, Anita So that's correct the grades that we're going to have in Q4 more or less that's about what we'll have for the remainder of the deposit and you can see the annual grades in that press release that we put out and I believe it was September of 'twenty three that we put that press release, we show the annual.
Speaker Change: <unk> production profile with <unk> yeah.
Speaker Change: Alright, and then Paul it's already answered my question on capital allocation and.
Speaker Change: And M&A and I was just also wondering when it comes to the Uh Huh.
Speaker Change: I think that was a bit of a revision in guidance on the project.
Speaker Change: Project Capex expenditures could you outline what happened there with the with the Thompson Creek and Capex spend.
Speaker Change: I don't think there was really a revision I think through Q2, we had when we guided the first half of the year, while we waited on a decision and so what was released with Q3 simply the full year view on Thompson Creek It was consistent.
Speaker Change: Well it was put out when we announced the restart decision in early September.
Speaker Change: So I don't think there was any true revision or maybe something around the buckets and what got expensed versus capitalized, but on a cash out the door basis.
Speaker Change: That number is the same as we flagged before $75 million to $85 million during 2024.
Speaker Change: Okay. Alright, then thank you very much on that.
Speaker Change: Thanks.
Speaker Change: Once again, if you have a question. Please press Star then one.
Speaker Change: The next question is from Mike Parkin with National Bank. Please go ahead.
Mike Parkin: Hi, guys.
Mike Parkin: My question.
Mike Parkin:
Mike Parkin: Just on Turkey, Thanks for that color on the lira also.
Mike Parkin: Has there been any thoughts or approaches from the government with respect to the royalty like the I believe the cap is $2100, obviously way above that.
Mike Parkin: Do you feel like there's any pressure to have that those royalty ranges revisited.
Speaker Change: Thanks, Mike I'm not that we're seeing we have here I mean, obviously, we're very connected with what's happening in country, we havent heard any buzz around that.
Mike Parkin: With the higher metal prices, it's a percentage royalty rate. So at 2700 globe. The government is getting more it's just at the actual percentage doesn't ratchet up so you've hit that top tier percentage when you get to 'twenty 100, gold, but but for every extra dollar. It goes up the government does make more and we haven't heard any.
Mike Parkin: Kind of groundswell of news about changing the royalty scale restructuring Turkey at this point.
Okay.
Speaker Change: All my other questions have been answered thank you very much.
Speaker Change: Thanks, Mike.
Speaker Change: This concludes the question and answer session and today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
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