Q3 2024 K92 Mining Inc Earnings Call
Thank you for standing by this is the conference operator welcome to the canine two mining 2024 third quarter financial results Conference call.
Speaker Change: As a reminder, all participants are in a listen only mode and the conference call is being recorded after the presentation, there will be an opportunity to ask questions.
Speaker Change: He joined the question queue you May Press Star then one on your telephone keypad.
Speaker Change: Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.
Speaker Change: I would now like to turn the conference over to Mr. David <unk>, President and C. O O. Please go ahead Sir.
Speaker Change: Thank you operator, and thanks, everyone for attending Cana in two monies 'twenty 'twenty four third quarter results Conference call. We hope you and your families are doing well. In addition to myself we have on the line John Lewis, Chief Executive Officer, and director and Justin <unk>, Chief Financial Officer, I would also like to remind everyone that after the remarks from management the call will be followed by Q&A session as we will be.
Speaker Change: Forward looking statements during the call. Please refer to the cautionary notes in risk disclosure in our MD&A and slide two of the webcast presentation also please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars, unless otherwise noted now I'll turn it over to John to provide you with an overview.
John Lewis: Thank you David and welcome everyone.
John Lewis: To begin with safety generally choose number one priority as always.
Speaker Change: I am pleased to report there's been no lost time injuries in the third quarter.
Speaker Change: And yet another major safety milestones with 95 consecutive zero LTI courses Julie.
Speaker Change: During this time to independent safety audits were completed on these audits a number of actions were identified in many actions already taken place and be completed.
Speaker Change: Safety technology on site has been enhanced including a proximity collision avoidance system and in cabin monitoring with more systems planned in the future, particularly ones that are underground communications system upgrade is complete which I will speak to later.
Speaker Change: The presentation Chris.
Chris: So no changes are being implemented and resources for safety training have been and continue to be expanded.
Chris: Culturally there's also been multiple positive leading safety indicators as shown in the charts for several consecutive quarters. There's been a significant increase in job safety assessments to reinforce our safety first mindset and a number of safety warnings from our in cab monitoring system is significantly reduced.
Chris: On previous conference calls, we take the increase loss time injury frequency rate in 2023 very seriously.
Also noting that historically <unk> has operated with one of the best Safety Records in Papua New Guinea, and the broader Australasia region as shown on the previous slide.
Chris: I'd like to reiterate the Chennai to relentlessly pursues our goal of achieving zero harm among our workforce.
Chris: On the ESG front, we're pleased to provide a progress update on our infrastructure tax credit scheme also referred to as high Tcs and its inaugural project the upgrades of the cold cooler film wire roads, which commenced in May 2024.
The $6 6 million dollar project and other ITC as projects are expected to be transformational for many of our communities. This road through the construction of reliable and efficient sealed road access who connect many of our communities to the main road network and ultimately lead to significant opportunities for increased trade in.
Chris: Business development as well as improving access to education funding for the project is through tax credit scheme with up to 2% of our annual assessable income to be allocated by K 90, twos with government approved community projects and deducted from future corporate tax payable.
Accordingly, the program structure means that as our main grows our income grows taxes and tax credits grow to the benefit of our communities based on the updated integrated development plan or as we refer to the updated IDP. The P. Eight case at $1900 per ounce we foresee.
Chris: Cash and additional 118 million allocated to the program from the current life of mine, which will clearly be very transformational to our local communities. We obviously highly come in the government of Papua New Guinea to creating this program and note that this program is in addition to our existing community development programs.
Chris: <unk>.
Chris: And only two easy extremely proud of the positive impact it is having on the prosperity and development of Papua New Guinea, and we encourage you to read our latest sustainability report found at www cannot each who've money dot com.
Chris: Now moving on to operational performance during the quarter. They can ensue goldmine delivered a record quarterly production of 44304 ounces gold equivalent.
104992 tonnes was processed at the acreage of 13 eight grams per ton gold equivalent, which is the highest high grade since Q4 2020 and above budget.
Chris: Switching from higher stock grades in Q2 reporting in Q3. In addition to a moderate positive gold grade reconciliation versus the independent mineral resource due to the higher grades throughput through the plant was deliberately reduce to maximize recoveries.
Chris: Strong production delivered a significant decrease to our cash costs and all in sustaining costs recording $584 per ounce cash cost of $941 per ounce gold all in sustaining costs. This is significantly below our 2024 operational guidance of 822.
Chris: <unk> 80 per gold ounce cash costs at 14, 40 to 15 40, <unk> all in sustaining costs well positioning the company for its 2020 for cost guidance.
Chris: Identity in the chalk all in sustaining costs have been elevated for the past few quarters as the company continues to make a considerable investment in the stage III expansion, particularly in 2024 with cost expected to decline considerably after delivering the expansion, which will be discussed later in the presentation.
Chris: With over 80% of gold equivalent production for the lower end of our guidance delivered in the first nine months of the year canine two is well positioned to meet its production guidance for 2024 120 to 140000 ounces gold equivalent in terms of our key operational quarterly physicals material movements in <unk>.
Chris: Development delivered a notable increase from Q2, while planned throughput increased slightly as noted it was held at a reduced rate to maximize recoveries. During this period of higher grades in terms of development subsequent to quarter end. We're pleased to report that October delivered a new monthly advanced record 904 meters.
This is particularly encouraging as its ahead of various key enablers, which fully integrate to increase lateral development rates firstly power upgrades in interim water supply for the main mine was recently completed and we benefited from this in October.
Chris: As shown in the chart a number of headaches is expected to significantly increase by approximately 80% by year end and 200% by mid 2025.
Chris: Accordingly, each step change in additional headings is effectively driven by additional mining from being fully activated allowing us to work in independent mining zones would reduce congestion and increased mining flexibility and productivity.
Chris: We have eight operational jumbos within the company for active to operating spares. The other two are currently undergoing more extensive maintenance with the first jumbo schedule to be reactivated in December from this it is clear that we have significant jumbo capacity to hit our targets once the numbers headings increase in infrastructure.
Upgrades are completed.
Chris: Thirdly, we have been expanding our mining team and including recruitment of additional management and supervisory levels specific personnel with high speed development expertise and these are being on boarded over the coming weeks lastly, our interim ventilation upgrade is on track for complete.
Chris: <unk> by the end of this month. This is expected to deliver a notable increase in the main mine ventilation ahead of the life of mine upgrades from our Puma and client and core based on the updated IDP, we're ramping up to 1200 metres of advanced per months, we're already over 75% of that in October and this was achieved before the.
Chris: Vast majority of the key enablers came into effect, we expect to realize the initial benefits of these neighborhoods in the first quarter 2025.
Chris: Process plant has obviously been a major positive for 2020 for delivering multiple daily weekly and monthly Cuckoo Records as a result, the nameplate throughput has been upgraded by G. Our engineering for the updated IDP from 500000 tonnes per annum. So 600000 tonnes per annum at 1640.
Chris: <unk> tons per day, a 20% increase shown on the chalk importantly, even with the upgraded nameplate a monthly weekly and daily throughput records exceeds the upgraded to a throughput, but 12%, 31% on 45%, respectively, clearly demonstrating that with the tons in front of it from the.
Chris: Mine, it's extremely capable and provides significant optionality going forward.
Chris: <unk> also highlight the potential of the stage three process plant, which was designed on the same throughput parameters at this stage to a process plant is more capable than its $1 2 million tonnes per annum nameplate design.
Chris: And in the third quarter the process plant set records in terms of metallurgical recovery as shown in the Bar chart goal achieved record quarterly recovery of 95, 3% significantly greater than the 92, six average recovery and the updated ICT September delivered a record monthly recovery of 19.
Chris: Six 5% copper recoveries are also being strong and better than the updated IDT recoding recoveries in Q3 of 95, 1% versus 94% in the updated IDP, we see additional upside to recoveries upon the delivery of the stage III process plant under construction, which is a more optimal plant design.
Chris: Plus more modern instrumentation, including online analysis.
Speaker Change: I'll now turn over to our Chief Financial Officer, Justin Brian Shea to discuss our financial results for the first quarter. Thank.
Thank you John and Hello, everyone. During the third quarter of 2024, we had revenue of $122 7 million. We sold 45248 gold ounces at an average selling price of 2000 and $388 compared to 18339 ounces at an average selling price of <unk>.
Speaker Change: $1848 in the prior year.
Speaker Change: As at September 30th 2024, there was 1887 gold ounces in inventory, including both concentrated dori.
Speaker Change: Decrease of 3082 gold ounces when compared to June 30th due to timing of sales.
Speaker Change: During the third quarter of 2020 for cost of sales was $41 million compared to $22 5 million in the prior year or $30 7 million compared to $14 3 million when excluding noncash items.
Q3, 2024 cash flow from operating activities before changes in working capital was 61 million compared to $10 9 million in the prior year as of September 30th 2024, He had $123 million in cash and cash equivalents spanning 27 6 billion in expansion capital.
Speaker Change: During the quarter, we had a working capital balance of $122 8 million and had a net cash balance including restricted cash of 81 6 million on the balance sheet.
In June 2024, Kennedy to establish two credit facilities with Trafigura referred to as alone in the financial statements to borrow up to $120 million with an accordion feature that allows for an increase to $150 million as of September 30th get any two has drawn $60 million from the loan.
There are no restrictions on the remaining $60 million that may be drawn from the loan.
Speaker Change: Further the $20 million of restricted cash on the balance sheet as security for the loan can become unrestricted on January one 2025, meaning we have access to an additional $80 million in aggregate.
Speaker Change: As John mentioned during the third quarter. They can add two gold operations produced 41702 ounces of gold 1 million 278492 pounds of copper and 37613 ounces of silver or 44304 ounces of gold equivalent we.
Speaker Change: Sold 45248 ounces of gold 1 million 615185 pounds of copper and 46062 ounces of silver we incurred a cash cost of $584 and an all in sustaining costs of $941 per ounce of gold which was significantly.
Speaker Change: Below are selling price of 2000 and $388 per ounce, our third quarter cash cost per ounce of gold decreased to $584 from $684. In 2023. The decrease was due to record gold ounces sold and higher byproduct credits and it is important to note that we will see.
Speaker Change: One word pressure on costs the economies of scale as operations ramp up and the stage III expansion is complete.
I will now turn the call back to John to continue with the rest of the presentation.
Speaker Change: Thank you Justin.
John Lewis: On the exploration drill section, we begin with an update on the stage three and stage four expansions, which will fundamentally transform catering to into a tier one mid tier producer through sequentially, increasing production to over 300000 ounces per annum with the commissioning of phase III expansion targeting the second quarter of 2020.
Fine and then to over 410000 ounces gold equivalent per annum. The stage for targeting second half of 2027 as outlined in our updated IDP, which was announced last month.
As of the end of October 69% of stage, three and stage four growth capital has speeds either spent or committed with a significant portion of the project on a fixed price lump sum basis.
John Lewis: Importantly, the project is fully funded and as we have demonstrated with our strong financial position K 92 is a strong cash balance ending Q2 with $120 million in cash plus 20 million of restricted cash that K 92 is the ability to make unrestricted beginning first of January 2002.
We also have access to significant amounts of liquidity through Undrawn credit facilities was $60 million available to draw down on demand plus an additional 13 million of liquidity through an accordion feature.
Speaker Change: Record gold price environment has resulted in higher than budgeted free cash flow generation as Justin noted our net cash balance grew significantly in Q3, even after considerable capital expenditures for the expansion during the quarter.
And lastly.
Speaker Change: Our commodity price downside is protected through the cost effective approaches put option contracts in October for $2 2 million or $19 75 per ounce. We purchased an option contract for the next nine months covering 12 5000 ounces of gold per months at <unk>.
Speaker Change: <unk> thousand $400 per ounce to protect against downside price risk to.
To be clear this is not a hedge we will sell at spot. If it is higher this is an insurance and we retain full exposure to the upside of the commodity price in summary, our financial position.
Speaker Change: Strong and our outlook is strong.
Speaker Change: On October 16th we announced a major milestone for the company the updated IDP.
Speaker Change: The purposes of this webcast I'll focus on the key highlights of the study there is a recording of the detailed updated IBP webcast presentation, which I encourage you to review found on our website at Www K 92 money dotcom.
Speaker Change: The updated IDP evaluated two cases.
Speaker Change: DFS stage, three case to one 2 million tons per annum and a P. A stage four case to one 8 million tons Corrado.
Speaker Change: From the prior IDP in 2022, the significant upgrade to the economics, driven by but not limited to incorporating the updated resource, which was particularly impactful for P. A case.
Speaker Change: Incorporating the highly accretive new off take with Trafigura.
Speaker Change: Incorporating a 20% increase to stage two a plant throughput nameplate as noted earlier.
Speaker Change: And realizing significant margin expansion from increased gold price assumptions from $1600, an ounce to $1900 per ounce, which I would note is still well below spall, while experiencing only moderate cost increases.
Speaker Change: Beginning with the after tax NPV finds the DFS case delivered an NPV of $680 million of 19, <unk> hundred dollars per ounce or almost $1 1 billion at $2500 Cross.
Speaker Change: While the Pea Ak's recorded uneven higher NPV.
Speaker Change: $2 3 billion at $1900, an ounce and $3 3 billion at $2500 Perez.
Speaker Change: Importantly, the growth capital remains low at $194 million.
Speaker Change: $201 million for the DFS case, and P ak's respectively. It's.
Speaker Change: It's important to note that $15 million of growth capital. We spent in 2023 and is not included in that figure.
Speaker Change: The riding this to the growth Capex presented the Sealy growth capital for the project remains closely aligned 216 million for the P. Eight case.
With 210 million total capex that was guided in our 2024 operational guidance in February of this year.
With DFS case grades of high averaging $8 five gram per ton gold equivalent over seven year mine life would put undergone operations supported by measured and indicated resources is very substantial.
Speaker Change: Courts on average run rate production of 303 ounces gold equivalent Corona with a peak of 319000 gold equivalent ounces.
Speaker Change: Over the life of mine the costs are very low the all in sustaining costs $920 per ounce gold equivalent on a co product basis, and a 665 grams on metals byproduct credit basis.
Speaker Change: On the P. Eight case the grade is also high averaging eight two grams per ton gold equivalent over a substantial 14 year mine life.
Quoting a run rate of 414000 ounces gold equivalent per annum with a peak of 485000 ounces colder cooler car.
Speaker Change: Costs are even lower for P case benefiting from the higher throughput rates with all in sustaining cost of $822 per ounce on a co product basis of $432 per ounce net of byproduct basis.
Speaker Change: Cutoff grade for the P. Eight case was Lord 5.5 grams per ton gold equivalent from the previous IEP based on an internal decision to have a more logo mine lives at comparable NPV, which we believe is in the best interest of our various shoulders, particularly the local community and <unk>.
Speaker Change: Both cases have the commissioning stage III plant expansion commencing late Q2, 2025, and it's important to note that construction is currently tracking slightly ahead of us for the <unk>.
P. A stage four is planned to commence second half 2027.
Speaker Change: On the following slides summarize since the comparison between the prior IDP and the updated IBP Aboukir DFS and P. Eight cases.
Speaker Change: The key points on this slide are closely.
After tax NPV at $1900 per ounce increased by 16% through DFS case, and a very significant and 73% for the P. Eight case.
Speaker Change: Using prices closer to this fall 2000, and $500 per ounce MTV increased 86% from the DFS case, and a very very substantial 114, 9% for the P. Eight case.
Speaker Change: Secondly, the.
Speaker Change: A particularly significant increases in N. P. V. P of cases are driven by combination of major expansion to our all in sustaining cost profit margin of 16% and 19 <unk> hundred dollars per ounce and 81% of 2000 and $500 per ounce and total ounces produced increasing by 46%.
Which extended the final year of production by five years.
Speaker Change: Both cases run rate and peak production remain fairly similar to the prior IDP and.
Speaker Change: In summary, the updated IDP has delivered a major improvement in economics.
Speaker Change: Now looking at the life of mine plan material movements. The DFS case achieved run rate throughput in 2027, while operating in a fairly steady head grade for most of the mine plan in terms of the P. Eight case and achieve stage three run rate of $1 2 million tonnes per annum in Q1.
Speaker Change: 2027, and stage full run rate throughput in Q4 2027.
It operates for almost eight years at maximum one near maximum throughput, which is a significant improvement on the prior IBP.
Rates are below average 2029 through 2031 and that is a focus of our exploration program to not only add mine life with bring higher grade feed resources earlier to maximize production and cash flow during these years.
Speaker Change: I think it's important to note the ramp up makes allowance for the slower development rates and the impact of the mine shutdown in the first half of 2024.
Speaker Change: Now in terms of life of mine production schedule, the DFS caged ramps up to run rate in 2027, which is also the peak production year of 319000 ounces produced the average run rate production of 303000 ounces gold equivalent.
Speaker Change: The ramp up costs also come down significantly with the coal production run rate all in sustaining costs, averaging $789 per ounce gold equivalent or $397 per ounce gold on a net of byproduct basis.
Speaker Change: P. A case production achieved run rate in 2028, producing 440000 ounces gold equivalent in that year with a run rate average of $414000 per ounce gold equivalent and a peak production of 485, almost crunch gold equivalent in 2034.
Speaker Change: Through our exploration programs, we see the potential to bring in higher production use sooner like the DFS case during the ramp up costs come down significantly with the co product run rate all in sustaining costs, averaging $805 per ounce gold equivalent or 338 per ounce gold on a net of byproducts.
Speaker Change: Correct credit basis.
Speaker Change: Looking at after tax cash flows and 19 <unk> hundred dollars per ounce, which as we all know was significantly below the current spot price both cases generate a significant amount of free cash flow. The run rate average for the DFS is $239 million per year and for the P. A case is 300.
Speaker Change: 16 million per year.
Speaker Change: But if we look at $2500 cross the run rate average for the DFS. After tax is $328 million per year and for the P. Eight case is $431 million per year.
Speaker Change: In terms of the after tax NPV five sensitivity analysis, both the DFS Ace and the P. Eight case benefit immensely from higher gold prices DFS case $2500 per ounce to lose an NPV of $1 1 billion, increasing to $1 5 billion of $3100.
Speaker Change: For us in the P. Eight days at $2500 per ounce delivers an NPV five of $3 3 billion, increasing to $4 3 billion at $3100 per ounce.
Speaker Change: For the P. Eight case, it's important to note that the NPV at 1900 is still considerably greater than our current market cap and we believe this study highlights significant deep value re rating potential of canine too.
In summary, with construction fully funded and commissioning of the stage III process plant less than seven months from that we're excited about our near term transformation of <unk> into a tier one mid tier producer.
In late October we were pleased to host a large group of analysts and investors to the <unk> gold mine to see firsthand the major transformation underway at the operation and also the mining friendly jurisdiction of Papua New Guinea.
Picture was taken on the 11 85 primary fan chamber, which is a massive 15 meter wide chamber that we will host our two 1.9 megawatt fans on.
Speaker Change: Commissioning of the fans and the completion of the Puma incline.
Life of mine ventilation primary circuit will be complete these fans of variable speed capable of increasing primary airflows from the current levels by over five times meeting the ventilation requirements beyond stage for these.
Speaker Change: These fans and scheduled for installation late Q1 early Q2 2025.
Speaker Change: Beyond the ventilation upgrade their multiple other infrastructure upgrades transforming the underground operation.
During the site tour of the analysts and the vessels travelled along the existing inclined to the main mine as shown on the left image and along the twin incline as shown on the right image experiencing firsthand the transformation the our investment in infrastructure will make in terms of mine productivity puneet.
<unk> causes capable of handling trucks operating at four times, the speed and 50% larger than those that we are currently operating.
Speaker Change: The business also toured our ongoing raise four activities the image on the right is a five meter diameter raised it was completed last quarter as part of our interim ventilation upgrade left and centre images are where the raise bore was currently operating developing our first waste slash all pass which will connect the main mine.
Speaker Change: <unk> to the highly productive twinning clubs, while visiting the raise both site underground of visitors, who are able to connect with and Wi Fi system, enabling them to access the Internet and then Wi Fi is just part of our major underground communication upgrade is well underway and rapidly progressing in Q1, we plan to leverage the system to introduce.
Speaker Change: <unk> Sandvik, author mine underground, enabling surface operation of our tele remote Lewis the image on the right is a setup outside the portal and the image on the top right is where it's located within our main office building as demarcation product yellow rectangle. This will enable operational Italian.
Speaker Change: Loaders during shift changes, resulting in an expected increase of 20% to motor operation time upon implementation of this system several additional productivity and safety technologies will be introduced including new tracks optimize to monitor real time asset health and machine productivity.
Speaker Change: Further installation of real time, CCTV real time in cat monitoring and fatigue management systems location tracking and Sandvik also mindful remote drilling from surface.
Speaker Change: Mine infrastructure was positively transforming the operation of technological transformation is also happening concurrently, which we're very excited about.
Speaker Change: Of course, all this is happening a number of mining fronts to significantly increasing.
Speaker Change: We'll now move to the latest drone footage taken a few days ago from the construction site of the $1 2 million ton per annum stage three expansion process plant.
Speaker Change: <unk> at the wet end of the plant.
Speaker Change: Brian you'll see some of the structural.
Speaker Change: Structural steel and arrived on site and to the left of many of the various long lead items.
Speaker Change: All of the long lead items have arrived on site with the exception of the flash float which is in country. Importantly, this is tracking ahead of construction Chengdu and the extensive footprint of the construction area is already being great in terms of streamlining management and providing ample space for pre assembly all of the foundation civils.
Speaker Change: Dunhill concentrate filtration in storage has with the walls remaining on the water services, all tank foundations and RIN beans are complete.
Speaker Change: Excavation strips as highlighted for the MCC excavation and blinding is complete and point will commence shortly.
Speaker Change: Particularly construction zone is not on the critical path is being worked on Opportunistically.
Thinking of valley plates are 95% complete and the works will then move onto the tails thickener wall installation all civil works are complete for concentrates thickener. All civil works are complete with that S. N P install having commenced.
Floatation area, the cleaner side Grand Slam has been court, which is the one there on the left work is not focused on the rougher sell pet this rotation to grinding retaining wall is also complete the S&P works in this area pretty assembly of flotation cells access platform structural steel work is being progressed in the SMT lay down area.
Speaker Change: Which is just outside of the view this is to minimize installation time and the grinding area. All civil works is complete for the Sag and ball mill lubrication systems and Scotts bunker all of the primary steel work for the suspended slab on the first level is complete and secondary steel work has commenced all in.
Speaker Change: Sag decking and cyclone tower installs progressing this area is our highest priority and our utmost divest in the search been and reclaim area. The reclaim grand slab foundations edisto gravity take up and.
Speaker Change: Complete the first of all it has been poured and preparations are ongoing court imminent core of a second we'll list and lastly, the first lift has been poured for the crusher pocket wall wings. All ground slab works are already complete works are ongoing second pocket and wing wall lift and also for the first leg.
Speaker Change: Okay rich.
Rich slab.
Speaker Change: In terms of ancillary buildings the interim power station is complete as shown on the left image.
Speaker Change: Permanent power station side establishment is underway engineering design is complete and long lead items have been ordered with progressive delivery scheduled Gustaf from January.
Speaker Change: A new maintenance facility site establishment is underway structural steel and cranes, a Jew onsite first week of December.
Speaker Change: Structural steel for the expansion to the warehouse facility continues to progress as shown in the image on the right.
Speaker Change: Which will give you some indication of the size of the facility which is tripling.
Speaker Change: This is not on the critical path of games being worked Opportunistically.
The paste fill plant all the long lead items have been ordered and front end engineering and design work completed with plans to award the construction contract later this quarter.
In late October and the first day of our analysts and investors site visit we announced our latest drilling results at Ara coma, a third set of results from this made in program I recall is located 45 kilometers from our process plant, even closer than Cora and Jud we were currently mining.
Speaker Change: Our latest results consisted of 19 holds bringing the total number of holes reported by K 92 to <unk>. The results are highlighted by step out holes discovering a potential think high grade zone 250 meters to the south with K a R. D doubled to nine recording 20.
Speaker Change: Two six meters at 987 grams per ton gold equivalent, including 10.7 meters of 14 97 grams per ton gold equivalent in approximately 60 meters uptick K a R. D D zero zero to five recording 12 meters at 11, six gram per ton gold equivalent within a 23.
Speaker Change: Six meter intersection at 987 grams per ton gold equivalent. The results also feature significant bulk mineralization tonnage intersections with the bulk tonnage strike extending by 50% to now over 750 meters, including a bit over 100 meters at one point.
Speaker Change: 92 grams per ton gold equivalent from a step at 250 meters to the SaaS and 111 six meters at 1.53 grams per ton gold equivalent from a step up 125 meters to the south there were also several high grade load intersections recorded as shown in the presentation slides.
Speaker Change: Now it's important to illustrate just how rapidly Ara Copa is growing the image on the left is from February this year. The sensor image is a snapshot from June on the image on the right is October it's important to note that at the beginning of the year. It was one rig operating on this project.
Speaker Change: But given the significant exploration success to date. This has not increased to four <unk>.
Speaker Change: Importantly, only approximately 40% of the known mineralized strike length of the corridor has been drilled tested by <unk> 92 to date.
Speaker Change: The long section on the left shows the significant 250 meter increased to strike length recorded in the latest results with a cross section on the right showing the southernmost stephane holds outlining the potential thick high grade zone discovered.
Speaker Change: These holes the high grade and significant thickness is very encouraging and is currently being followed up with additional drilling.
Speaker Change: Last slide is from Ara Copa looking towards the market by providing an appreciation of the gentle topography, who the potential mine site access and its proximity to the process plant infrastructure. The results today have been extremely exciting and we plan to announce a maiden resource in <unk>.
Speaker Change: Q1 2025.
With that operator, we would like to commence the Q&A session.
Speaker Change: Thank you we will now begin the question and answer session.
To join the question queue you May press.
Star then one on your telephone keypad, you will hear a tone acknowledging Iroquois.
If youre using a speakerphone please pick up your handset before pressing the keys and talked to all your question. Please press Star then two and we will pause momentarily to assemble our roster.
Speaker Change: And the first question.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: Okay and.
Speaker Change: And that question will come from Andrew <unk> with BMO capital markets. Please go ahead.
Speaker Change: All right John Thanks for taking the question and for hosting the analysts on site earlier.
Speaker Change: Last month I just wanted to touch.
Speaker Change: Get a few commentary on the mobilization of the.
Specialists.
Speaker Change: Jumbo operators, and then I guess I would call them consultants.
Speaker Change: <unk>.
Speaker Change: Dance rates can you.
Speaker Change: Give us a little bit more insight as to how that's going and the timeline that we should expect to see these people mobilized and then impact the productivity place.
Speaker Change: Okay. Thanks.
Thanks, Andrew.
Speaker Change: It's good to have you guys all on site.
Speaker Change: In terms of additional or more specialized jumbo operators.
Speaker Change: It's been an ongoing process to recruit those.
Speaker Change:
We've actually had some I think starts in for them on site.
Speaker Change: In terms of a.
Speaker Change: More specialist.
Speaker Change: Goldman that's that's.
A couple of very specialist people.
Speaker Change: We.
Speaker Change: We'll have those guys on site.
Speaker Change: On the.
Speaker Change: 'twenty 'twenty hot so the first quarter 'twenty High court.
I'd note that.
Speaker Change: Last month for instance was our best month.
Speaker Change: For the year.
Speaker Change: So we're a bit over 900 meters. So we are seeing an improvement in our niche.
Speaker Change: Because as we grow on some additional.
Speaker Change: Jumbo.
Speaker Change: And also as we can.
Speaker Change: Started to bring on some of that infrastructure.
Speaker Change: We've spoken about for some time so both of those are.
Speaker Change: Fighting better outcomes.
Speaker Change: And then of course as we mentioned on slide one of the main name.
Speaker Change: Interim measures is that improvement in ventilation, which will which will occur later this month.
Speaker Change: Okay.
Speaker Change:
Speaker Change: And just a quick follow up question.
Speaker Change: It was one of the highlights for me from the site visit but can you just give us a quick update on how the raise boring.
Speaker Change: Great.
Speaker Change: I guess just going with the.
Speaker Change: Two units you have.
Speaker Change: So the smaller unit I know I think it's.
Speaker Change: <unk>.
Speaker Change: Right now our resolve.
Small vent rise.
Speaker Change: The larger units, which is odd meter diameter.
Speaker Change: I think in the process of switching over.
Speaker Change:
Speaker Change: Drilling a pilot hole to.
Speaker Change: Starting up the reading.
Speaker Change: Okay.
Speaker Change: I think that covers my questions.
Speaker Change: We will be watching closely good luck. Thank you.
Speaker Change: Thanks, Andrew.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: Again to ask a question. Please press Star then one.
Speaker Change: This will conclude our question and answer session I would like to turn the conference back over to Mr. John Lewis for any closing remarks. Please go ahead Sir.
John Lewis: Thanks, operator, and thanks, everyone for joining us this morning.
John Lewis: The yearly for somewhat also early carrabba's.
Speaker Change: Look I think.
Speaker Change: We've we've just reported the best quarter that as a company in this mine we've ever had.
Speaker Change: Record ounces produced at record gold price.
Our.
Speaker Change: Record revenue record cash balance.
Speaker Change: And doing all of that while we're constructing our stage three stage four expansion.
Speaker Change: So this really has been from my perspective.
Standing quarter.
Speaker Change: And.
Speaker Change: Shows the resilience and potential all that can add to mine.
Speaker Change:
Speaker Change: So we're into the next quarter not all we're happy with where we are in the next quarter.
Speaker Change: Looking forward to.
Speaker Change: Having another call in just a couple of months' time, where we've got two for the quarter on quarter here.
But this is very much transformational would not less than nine months away from commissioning stage. We are starting to commission stage III plant.
Speaker Change: The massive transformation that that's going to make 2009 to sweep Paul as we flagged pretty much to a tier one producer.
Speaker Change: So.
Speaker Change: With that.
Speaker Change: Thanks for your time today.
Speaker Change: We look forward to continuing to engage with you on this.
Speaker Change: Any insight into well.
Speaker Change: Thank you.
Speaker Change: This concludes today's conference call you May now disconnect. Your lines. Thank you for your participation and have a pleasant day.
Speaker Change: Okay.
Okay.
Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].