Q3 2024 Aya Gold & Silver Inc Earnings Call
[music].
Okay.
Speaker Change: Hello, and thank you for standing by welcome to ire gold and silver third quarter 2024 results conference call.
Speaker Change: At this time, all participants on a listen only mode.
Speaker Change: After the speaker's presentation, there will be a question and answer session.
Speaker Change: To ask a question during the session you will need to press star one on your telephone you would then your automated message advising your hand is raised.
Speaker Change: To withdraw your question. Please press star one again.
Ruth Hanna: I would now like to hand, the conference over to Ruth Hanna you may begin.
Ruth Hanna: Thank you operator.
Ruth Hanna: Morning, everyone and welcome to ion <unk> third quarter 2024 results earnings call.
Ruth Hanna: On the call, we are pinola styled president and CEO.
Speaker Change: Ill go laundry they told CFO Rafael.
Speaker Change: Rafael Boudoir, Vice President operations and W. La alarmed Vice President exploration, all calling in from Marcus.
Speaker Change: We must finish today's event with a Q&A session with the team as always please contact our IR team directly with any follow up questions that are not addressed during the call.
Speaker Change: Before we begin I would like to remind listeners that today's event will contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements.
Cliff: Details on our forward looking statements are contained in our November 14th news release as well as on SEDAR Cliff.
Speaker Change: On Www <unk> com.
Speaker Change: With that I would like to turn the conference over to <unk>, President and CEO Manuel a color.
Speaker Change: Please go ahead.
Speaker Change: Thank you Ruth and good morning, everybody and thank you for being with US This morning Q.
Speaker Change: Q3, 2024 is a transitional quarter, but with key strategic accomplishment.
Speaker Change: We continue advancing as good in their mind and it is on budget and as we had indicated we were a couple of weeks.
Speaker Change: From the original plan, but we've made up some of that time and we are.
Speaker Change: Commissioning on a going basis.
Speaker Change: The.
Speaker Change: We're targeting commercial production in late Q4 2024.
And for that we have a stockpile as of the end of this quarter of 347000 tonnes of ore.
Speaker Change: Which is ready for commissioning of the new plant.
Speaker Change: The expansion is 99 point something completed.
Speaker Change: The video of last week, you saw the press release, so we're almost there and we are.
Speaker Change: We will be seeing more.
Speaker Change: More development in the very very short term.
Speaker Change: It is a transitional quarter on production we've produced 355927.
Speaker Change: Ounces and the reason we're below our budget and below our expectation is we were developing new stopes, but those were not ready for.
Speaker Change: This water they are ready for the Q4 quarter. So the delay in reaching the new stopes and the fact that we have a very disciplined mining method now we stayed in stopes that had lower grade and less tonnage and the reason for a <unk>.
Speaker Change: Lower production, we already see this being corrected in the month of October.
We generated in the quarter $11 million of revenue at an average realized selling price of $27.
Speaker Change: Per ounce, which is.
Very good considering the general market.
Speaker Change: Past few months.
Speaker Change: Net loss for the period is not significant it's 300000 dollar.
Speaker Change: And the adjusted cash cost is $19 93 as you can see we're also reporting a total cash cost of $23 47. However.
Speaker Change: We have to tell you that this cash cost includes nonrecurring expenses the development of the six stopes that are now ready.
Speaker Change: Not capitalized and were passed through as an expense in Q3 and increasing their cash costs by almost <unk>.
Speaker Change: $3 50.
<unk>. So this is nonrecurring expenses.
Speaker Change: Was it a contract given outside to a contractor to develop the six stopes and obviously when you use a contractor it's a lot more expensive than our own team, but we wanted to do this because we are getting ready for the plant to be up and running by Q4.
Speaker Change: For 2024, and as you know by that time, we will be mining underground at 1600 ton per day. So when we talk about commissioning very often people think of commissioning of the plant, but theres also ramp up and commissioning of the underground mine, where you have a lot of.
Speaker Change: <unk> been a lot of new people and Ed, let's recall that it used to be 700 tonnes a day mined and now it will be a 2700 tonnes a day mined. So there is ramp up at the plant, but theres also ramp up at at the at the at the mind, mainly the underground mine. The open pit is going very smooth.
Speaker Change: We are mining 500 ton a day and we will be going to a 1000 ton a day. So just for you to understand the cost in Q3, we process 42000 ton and the underground cost of mining was $85, which included the development of the six.
Speaker Change: Stopes are stockpile as a cost of $35 of mining. So you can see that it is really a very unusual quarter with nonrecurring expenses as I indicated we already see big changes coming through in Q4.
Due to the fact that we were a couple of weeks late and the fact that the commissioning is now starting more in Q4 and then in Q3.
Speaker Change: We will revise the guidance for this year to one six up to one 8 million ounces.
Speaker Change: For the year 2024 as.
Speaker Change: As well in the quarter, we've done a spin out so we have created the spinout to better value our gold assets. So we signed a term sheet with amex to a brand new company for the <unk> asset and the TGF asset so the spin out is at.
Speaker Change: Been a very good success and they started the new team with the financing of $7 5 billion and they ended with the financing of $15 million. So it has been a very good success and it's all being put together as we speak.
Speaker Change: On the exploration program as you know.
Speaker Change: A very very interesting exploration story, so we've confirmed high grade mineralization at depth and on lateral extension is going there and then we'll review some of those drill results. We grew <unk> main trend from.
Speaker Change: To up to five four kilometer you'll recall last year, we were at $4 two kilometer and we've also shown potential for new mineralization style and wanted to drill a hole, where we obtained close to 2% copper and 2000 gram per ton silver.
Speaker Change: We are also in the quarter.
We are preparing ourselves for new drilling which has started now in Q4.
Speaker Change: Today.
Speaker Change: We have new anomalies to the east and to the South we're currently drilling the new anomalies to the west.
Speaker Change: So quickly a very.
Speaker Change: A quick review of the spin out.
Speaker Change: <unk> is a private company for the time being it's North Africa, and West Africa, because it has an asset in Mauritania and as MS is a mining permit in Morocco.
Speaker Change: As a resource Thats not 40, if you went to one that goes back many years of <unk>.
Speaker Change: <unk> 300000 ounces at 13 Gram per ton and right now underway. There is a 2400 meter drill program to look at the extension and to start.
Speaker Change: The understanding of the geology.
Speaker Change: New team in <unk> is on site as we speak with our team the <unk> team and the drill program is underway.
There's also the tissue REIT asset, which you know we've done a feasibility study on.
Speaker Change: It has a resource.
Speaker Change: A little bit above 500000 ounces.
Speaker Change: Yes.
Speaker Change: Between two gram per ton and one six gram per tonne depending on the deposits.
Amex to have an option to buy this from <unk> over the next three years.
They will be looking at fast tracking this.
Speaker Change: Two development or more drilling and.
Speaker Change: Development and construction hopefully in the very near future.
Speaker Change: Our positioning in amex to after the financing will.
Speaker Change: We will be 42% ownership.
Speaker Change: For.
Speaker Change: The company will have $15 million in cash and <unk> will have two board members.
Speaker Change: Sitting.
Speaker Change: And our board of about seven individuals.
Speaker Change: So going to slide number five.
Speaker Change: The presentation again. This is just a quick summary of where we are at the end of Q3. So you see the silver production is a little bit lower than what we wanted but again due to stope start being ready and.
Because the other thing as well as I'd say, we are very disciplined is historically they would open stopes never close them and go to the next one and then maybe come back later, we don't do that anymore. We finished the stopes, we backfill them, we have a cement backfill plant. So we backfill them so that we can.
Speaker Change: And take the stopes that are between two stopes that are mineralized. So we have a very disciplined approach enhanced sometimes it forces us to continue into some stopes, where we have lower grade material, but globally for the company as a whole and for the project is it's the way to go to be discipline.
Speaker Change: To take all the <unk> that's available.
Speaker Change: Cement backfill and then move to the next phase.
Speaker Change: If you have.
Speaker Change: On page five you have the production compared to the rest of the year you have the grade.
Speaker Change: Again due to the fact that we stayed in some older Stopes, we were getting an average grade of about 161 Gram per tonne, which is absolutely too low for the deposit but the reality is and we don't want to leave it there and not taken so currently in October we're already back to <unk>.
190, and we expect this to continue to go backup.
Speaker Change: Recovery is always between 82 and <unk> 85.
Speaker Change: Again, continuing smoothly.
But the real important charge here is the quarter lead ton process.
Speaker Change: We are at 83000, which is a 19% increase year over year and.
Speaker Change: And the two plans that we have functioned extremely well and they are older but they will keep running.
Even once we have the third plant up and running.
Speaker Change: On page six you have a few financial tab.
Tableau enfranchise.
Speaker Change: S charge, a few financial charge you have your cash flow from operating activity, which is a negative $6 million. This quarter due to the fact that we've invested heavily into the development of the six stopes you have the gross profit, which is again a little bit lower due to the fact that the grade.
Speaker Change: It was lower and profits and cost of goods sold go hand in hand.
Speaker Change: And with a little bit less production for the quarter and a little bit lower grade you have a higher cash cost, which we saw at $23, which we have on the next slide therefore with that you have a quarter where at the end when you look at the financial statement, we are breakeven, which I find not that bad.
Speaker Change: Transition quarter, where we are ramping up the plant ramping up the mine and we did hit this week 1000 <unk>.
Speaker Change: 600 ton per day from the underground mine. So we are there we are where we want to be for this project to really get going.
Speaker Change: So you have that.
On the construction front you have that on slide number eight.
Speaker Change: Their expansion plus you saw the video last week, which is telling but we are 99% done at the processing plant.
The underground and the open pit are both operating very well tailings and water management very good news on water management, we are at the beginning of the rainy season and all of our water reservoir are full so that is again very unique it's the time of the year.
Speaker Change: We've had very good rainfall and our water management system and the way we captured the water is working extremely well so I'm pleased to say that on the waterfront.
Speaker Change: Doing extremely well electricity infrastructure, while that's built you saw some of the pictures.
<unk> Green energy coming to site, we have a.
Speaker Change: 20 year PPA.
Speaker Change: It's coming.
Speaker Change: Operating extremely well and we're pleased with that.
Speaker Change: The <unk>.
Speaker Change: Their expansion you saw that we start.
Speaker Change: We started the commissioning you saw the ball mill.
Speaker Change: The lubrication system that created a few weeks delay is now all back in an operational issue.
Speaker Change: Issue that we add it's all been fixed and we've done all the test the oil is pure the ball mill can turn and you saw the conveyors. So it's all working very well we have also completed.
Speaker Change: Our lab. So we have a very big lab, that's going to add where we can do all of our samples in our preparation. So that's also been completed.
Speaker Change: Taking you to the exploration aspect of our business.
Speaker Change: As you know we are one of the largest drill program in Africa. We are drilling this year 160000 meters.
Speaker Change: And we have some three main zones there as good in their minds. The <unk> project and there is room there regional so at <unk> the mine at.
Speaker Change: At the end of Q3, we had 25000 meters done on a program of 30000 meters as I always tell David David If you need more drilling because you keep finding and you keep finding extension just come back to us and it was good in their mind as no limitation.
Speaker Change: On the drilling that we want to do there because it is at site.
Speaker Change: Truckle, it's something that's extremely important.
Boumediene: Boumediene added 69, almost 70000 meters done of the 120000 meter project program.
We should get to the end of the year to close to 120, we are now running at 11 rigs.
Boumediene: And then in.
Boumediene: And one RC and we will probably bring a second RFC for deeper holes. So that we don't go core all the way it will be less expensive and faster. So, but we are running 11 rigs right now. So the first 60000 meters was done on the expansion on the main zone and it expanded the mains onto five four.
Boumediene: Kilometers strike the other 60000 meters are being done on targets and as I indicated at the beginning we are currently drilling the west target, which is a very strong geophysical anomaly.
Boumediene: That's good there regional we're almost done we had 10000 meters in the program. We are at the end of the quarter. At 9800, we are finding mineralization, we need to find a pocket where its accumulated and if we can mine it.
Boumediene: The area as you know is very large we've done all the geological work spectral imaging satellite Geo can we've done stream sediment and we're looking at many targets and we are doing we are drilling all of the targets that we see and at the same time, we have the asset that we bought.
Boumediene: Last year. So we've completed the geophysics program because steals it as also a copper component to the gold and silver and we we are analyzing that as we speak.
Boumediene: On <unk>, which used to be part of us directly now as part of us indirectly through Amex do well. This year, we didn't mapping and we did a bit of geology, and but drilling as I indicated to you has started being managed by the <unk> team and by Archie.
Boumediene: As you go into add on page 11 of the presentation.
Boumediene: We keep hitting some beautiful.
Boumediene: Mineralization.
Boumediene: To date, we've drilled 8000 meters in Q in Q3 of a 30000 meter program looked at there is some of the results again, a thousand gram per tonne over 13 meters 322 over 17 at 2800 over eight meters. So it is.
Boumediene: As we expected a very nice loaf bread, one four kilometer long 20 meters thick, all the way down to the ground night, which is between 6% and 700 meters. When we get down to that granite as we had expected there's kind of an enrichment of silver at the bottom and we are seeing.
Boumediene: So this is ongoing it's a 30000 meter program. We did 8000 this quarter and as I indicated. This is we will drill this as we keep finding extensions at depth and to the east West.
On page 12, you have the original geophysics of medicine.
Boumediene: So <unk> is our main <unk>.
Boumediene: Exploration asset because it's got so much potential and last year with 94000 meters of drilling it gave us.
Globally in our categories over 300 million ounces of silver equivalent at very good grade or $4 1 million ounces of gold equivalent at.
Boumediene: At five Gram per tonne. So it's it's a beautiful project.
Boumediene: We as indicated we've drilled in the quarter 27000 meters. So you can see it's very very busy we've drilled so far 69000 meters you see results continuously and youre going to keep seeing more as we have 11 drills Sterling and this is continuing throughout the year we've.
Boumediene: Added 18, new permits which is because we're seeing the structures at surface because we did the geophysics for the whole region. We did 13000 line kilometers of mobile emptied geophysics, where we've done the complete district and we have many many.
Boumediene: Geophysics anomaly and that those are being looked at we do the Geo Chem, we walk the ground, we do some sampling and when we're ready we drilled them. So currently we are as I indicated to you we are drilling the west which is an important.
Boumediene: So on page 13, just a few results of the quarter.
Boumediene: Coming from <unk> in the 1000 Graham.
Boumediene: Over $13 five meters 322 grams over $17 six so you can see we have.
Boumediene: Continuous resolved on this.
Five four kilometers slab, which we do see over six kilometer and geophysics.
Boumediene: Continuous is there we have drilled 60000 meters into it and we will do a resource update for Q1 of next year.
Boumediene: But the highlight is on page 14.
Boumediene: It's the high conductivity anomaly, so what you see at the top on top of the two.
Boumediene: So it was our cherries is the surface you can see the drill results on page 14, we've drilled <unk> in which is the one on the right hand side you see on the left hand side is.
Similar anomaly and and the top is mineralized. So we know the top of whom as it has been our life because we already have discovered 352 million ounces of silver equivalent.
Boumediene: But what's very interesting right now and you see it on the bottom picture is we are drilling that long hole.
Boumediene: That is going right into the eye of the anomaly. So as of now we are just touching the green. So we're about 900 meter into that drill hole and we're just beginning to enter what we hope to see a de mineralized zone, which has the same thing that you're.
Boumediene: As what we have at surface, but you know this is geophysical so is it exactly there.
Beginning of our program now why we're drilling this because we want to understand if this is a pour free system. If this is mineralization at depth because look if you look at the surface and how small it looks from where we are now and we know that this is five four kilometer long and 300 more than 300.
<unk> got 352 million ounces was on strike of $4 two kilometer and now we're five four and look at the system underneath. So this we will be entering the zone I would say in about a week to 10 days.
Speaker Change: Of course Ed.
We are watching and and the Geos are giving us.
Speaker Change: Feedback of what kind of rock Theyre, seeing and where we're going so this is where <unk> got the lateral extension to the west of the east to the South it's still open to the North and you have this at depths structure that looks very very interesting.
Speaker Change: Yes.
Speaker Change: On the ESG side to complete this presentation on page 15.
Speaker Change: Look we are very very serious about health and safety. We only had three lost time injuries in the quarter and they were not very very grave. It was just some small injuries we gave.
Given 5000 hours of training in the quarter, which is a 90% increase year over year and we take this seriously if you are.
Speaker Change: With us on Linkedin, you do see a lot of pictures of some of our employees, who put up pictures of the training, which is health and safety. It can be education. It can be emergency all of that you can see I'm also very pleased to say that we've received the ISO.
Speaker Change: <unk> 9001 certification it was a team effort at the mine site. So from geology, all the way to health and safety production. We received the ISO 9001 certification. We've also submitted our all of our data for the carbon disclosure project you would know that.
Speaker Change: Our ESG loan with <unk> is an ESG driven facility. We have received all of the money in 2024, because we've met all of our ESG requirements. So that is something that we take very very seriously.
Speaker Change: With the communities its also going very well.
Speaker Change: Im pleased to say that our program in <unk>.
Speaker Change: And first school showed 68% increase year over year in the percentage of students opting for science projects or science screens. So this is really very very interesting and we are now taking our program to second Middle School. So primary school.
Speaker Change: High School.
Speaker Change: In Morocco. They call. This first school and second school Middle School, but we.
Speaker Change: We are very much involved with the education online education health and safety for the communities. We are now starting a mobile clinic pediatric you remember last year, we added for the eyes, we had diabetes we've had many many excellent.
Speaker Change: And livelihood.
Speaker Change: The <unk> project with agriculture, we have water pumps, and we are really very much involved where we've added some.
Speaker Change: Signal at the Safran and vegetable farms, and which which is just for health and safety. So globally, it's been a very very good.
Good quarter for some of the milestone it's been a little bit low on the production and we agree.
But we're building the future we're not just trying to maximize one quarter and if we have to Andy we don't want to compromise the mine. So when do we need to stay in one phase and finish it so that we can backfill it with cement, we do it and knowing that it's just better.
Speaker Change: Times ahead, so the takeaway is again at.
Speaker Change: At <unk> 120000 meters of drilling ongoing interpretation major major exploration program on the west and at depth, which is very interesting while the while the major strike. The main strike continues to expand.
Speaker Change: It's going to add 40000 metres of drilling you recall 10000 regional 30000 at the mine ongoing and again on track, probably we will exceed the 40000 meters and as Glenn There is silver mine expansion well as indicated it is on track it is on budget.
Speaker Change: Our budget that was prepared in 2022 that saw some inflation in transport and today, we are within 1% not even less than 1% on budget. We reviewed that this week and it's.
Speaker Change: We can still say today, we are on budget, we cannot say were on time, because we add thats short delay with the plumbing.
Speaker Change: Lubrication systems, but within three to four weeks, where close to on time, but we are on budget.
Speaker Change: So thank you very much for your time and I will turn it over to the operator for the question period.
Speaker Change: Thank you Les.
Speaker Change: Ladies and gentlemen, as a reminder to ask a question. Please press star one on your phone and wait for your name to be announced.
Speaker Change: So with Joanne your question.
Speaker Change: Please press star one again please.
Speaker Change: Please standby, while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Amit Singh with eight capital Your line is open.
Speaker Change: Hi, Thanks, guys, Hi, Ben Walden team just to get a little Nitty gritty this quarter on the modeling could you could you expand on some of those underground issues you were having on those stopes and the rework you have to do just trying to.
I understand the Grand scheme of things here.
Speaker Change: <unk> four stopes being rehabbed or are they different.
Speaker Change: The six.
Speaker Change: <unk> in development right now.
What's the thinking there.
Speaker Change: Thanks Bernie.
Speaker Change: And altogether here in Morocco, we just came back from the barn, so could not be better prepared to answer your question.
Speaker Change: <unk>.
Speaker Change: We are we have reviewed obviously with the board in the past three days.
Speaker Change: Appreciate it.
Speaker Change: And I would.
Speaker Change: Pass it over.
Speaker Change: Who is this.
Speaker Change: Our <unk> operation.
Speaker Change: Charlie.
Speaker Change: <unk> under construction.
Speaker Change: <unk>.
Speaker Change: Yes.
Speaker Change: His view.
Hum.
Speaker Change: So.
Speaker Change: On the plan going forward.
Speaker Change: Good morning, guys.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: For the quarter.
Speaker Change: This year we are.
Speaker Change: One for Mark.
Speaker Change: Open up the model.
Speaker Change: <unk> spokesman rehab.
Learn more on geology and re refining.
Speaker Change: One of our geological fault.
Speaker Change: The lower grade in Q3 team for approved drugs.
Speaker Change: We are developing.
100 <unk>.
Yes.
Speaker Change: Before or drive through.
Speaker Change: Bottom adult brands Furby.
Speaker Change: The lower grade of the scope and as we go on higher cost on higher revenue.
Speaker Change: We get we got into <unk>.
Speaker Change: Great.
Speaker Change: We also have a threefold.
Speaker Change: Yes.
Speaker Change: Your assets.
Speaker Change: Our dryer regard, regardless primaries are and we are ramping up our equipment.
Speaker Change: Sure.
Speaker Change: Unplug to backfill that.
Tom.
Speaker Change: And then just lastly, the commissioning.
Speaker Change: Sure.
Speaker Change: We are integrating.
Speaker Change: With Brookfield and our mining sequence.
Speaker Change: That's correct.
Speaker Change: So it's growing very nicely.
Speaker Change: And as we commission the plant.
Speaker Change: We will be able to buy thermal mine.
Speaker Change: <unk>.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Q3.
Speaker Change: It is.
Speaker Change: Third quarter Q4.
Speaker Change: We'll need to get ready for tier one.
Services are ready we've been doing.
Speaker Change: A lot of.
Speaker Change: All right.
Speaker Change: Where we have a remarkable growth.
Speaker Change: For each mine property.
Speaker Change: Both.
Mark.
Speaker Change: All we want to be great.
Speaker Change: <unk> into operation will vehicles continue mining in the first half.
Speaker Change: Uh huh.
Okay got it.
Speaker Change: Okay, so that sounds good.
Speaker Change: Thank you work it through in Q4, hopefully hopefully better starting next year I guess my second question was the open pit it seems like it's doing better for now right.
Could you maybe look at sequencing and more open pit ore.
Speaker Change: To get better grades.
Speaker Change: Coming quarter, or you're just going to go at it.
Yes.
Speaker Change: First of all.
Speaker Change: And the biggest one borrower.
Speaker Change: We are.
Speaker Change: And we've been found.
Speaker Change: Samsung or.
Speaker Change: Originations on the books.
Speaker Change: New heartburn.
Speaker Change: No.
Speaker Change: Europe was always there on the first one is obviously to recover all of the pump or the economics taken.
Speaker Change: Taken off the ground.
Speaker Change: But also to make sure we have the flex.
Speaker Change: We need to.
Speaker Change: Part of it.
So.
Speaker Change: Smaller firms on board.
Speaker Change: We're working on it.
Luke.
Our above 500 program.
Speaker Change: Regarding power.
Speaker Change: Before year end.
Understood.
Speaker Change: My remark on.
Speaker Change: Ricardo <unk> from Robert Baird.
And then going quite.
Speaker Change: All right.
Speaker Change: Over.
Speaker Change: We have about 200.
Speaker Change: This triggered.
Speaker Change: Thanks.
So we have to work required to get through that.
Speaker Change: Thanks Robert.
Speaker Change: Especially to give us more flexibility for also helps drive cost down, especially in Q4 in Q1, where we are going to join the commissioning in most of our book to Bill.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Got it it sounds all good I guess my final question is just on the anomaly.
Speaker Change: When do you think you will expect some results before year end on that are it's probably Q1.
Or do you mean.
Speaker Change: Potato underneath the gamba.
Speaker Change: And the trend is that for sure.
Yes, yes.
Speaker Change: Yes, yes, I do call.
Speaker Change: That is five times a day.
Speaker Change: We're following with <unk>.
Speaker Change: Great.
Speaker Change: We are now.
Speaker Change: This morning that the total.
Speaker Change: Thus we were at 1000 meters.
Speaker Change: Interim along the route.
Speaker Change: Sequence that we wanted to see.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: And we are a couple of days away a couple of things David.
Speaker Change: 10 days 15 days away and obviously this is top top priority at the laboratory with the turnaround plan.
160000 meters of drilling.
Speaker Change: We represent 80% of the capacity in the country.
Speaker Change: But that will have top priority that is.
Speaker Change: Is there the team is there to understand it is like a new theory that we're testing due to this massive geophysical anomaly. So yes, we hope to have results.
Speaker Change: Four at year end, you're under you understand it's not one drill hall, that's going to make it a broker.
Speaker Change: But the anomaly is strong and also when you look at the math.
Speaker Change: The same phenomenon, where at the same strength is also off to the right. So when you look at the world.
Speaker Change: Are you at the surface in a moment, but you also have the anomaly.
Which is identical.
Speaker Change: And the one under who met the metrics so yes.
Speaker Change: It is a priority deployment to the west is also a priority.
Speaker Change: And again.
Speaker Change: <unk> when we walk the ground showed us.
Ross: Ross So yes, we're very pleased with the 1000 meter done so far and that we are expecting results.
Speaker Change: Okay, Great I look forward to those thanks guys.
Speaker Change: Thank you. Thank you.
Speaker Change: Please standby for our next question.
Speaker Change: Our next question comes from the line of Kevin O'halloran with BMO capital markets. Your line is open.
Speaker Change: Hey, Ben on team Thanks for taking my question.
Speaker Change: Just wondering if you can give us a bit more color on the backfill issues that you mentioned in the press release and are these results now.
Speaker Change: Absolutely. Thank you for asking and again I'm going to pass it over to him.
Speaker Change: And just to give you a better.
Speaker Change: Explanation.
Speaker Change: Where we are and the reasons for the commission.
Speaker Change: More time.
Speaker Change: Therefore, we refer to them as soon as well.
Speaker Change: Our growth in our numbers with virtually.
A small deal on the financial framework.
Speaker Change: So we figured that unchanged couple all of those in the pipeline.
Speaker Change: Correct.
Speaker Change: Good question.
Speaker Change: The first in the first half.
Speaker Change: The apartment sector.
Speaker Change: Okay.
Speaker Change: Permian production.
Permission.
Speaker Change: If things work the changes required from Reebok.
So.
Speaker Change: Firstly with regard.
Speaker Change: Great. Thanks for that and then you mentioned the grades are.
Speaker Change: Coming up.
Speaker Change: Just wondering if you can give a little bit more granularity in terms of what the grade profile. We should expect over the next few quarters as you ramp up.
Speaker Change: While we're not yet giving guidance for next year.
Speaker Change: And maybe you want to comment on what we're seeing right now.
Speaker Change: Yes.
Speaker Change: We mentioned rhythm.
Speaker Change: Okay.
Speaker Change: In October we opened globally.
Speaker Change: Above 200 Gram per ton so Jordan.
Speaker Change: Which is which is in line with rewards.
Speaker Change: It was also in line with our with our mine plan.
A large amount of certified hyper growth hormones.
Speaker Change: Paul.
Speaker Change: We're quite happy with the Greg as far as the others.
Speaker Change: You see a.
Speaker Change: Pretty good increase of October two.
Speaker Change: Again, it's always.
Speaker Change: The self drive.
Speaker Change: Or driving performance.
Speaker Change: Those are always a bigger or smaller.
Speaker Change: More so.
Speaker Change: So.
Speaker Change: So the question would be what we're going to serve demand.
Speaker Change: Some folks are higher or lower.
Speaker Change: We have three hospital buffer vertical purchases.
Speaker Change: Okay, Great I appreciate that that's all for me guys. Thanks a lot.
Speaker Change: Thanks, Kevin.
Speaker Change: Thank you.
Speaker Change: As a reminder, ladies and gentlemen, Thats star one to ask a question.
Speaker Change: Our next question comes from the line of.
Speaker Change: <unk> with SVP.
<unk> finance.
Speaker Change: Your line is open.
Speaker Change: Wonderful.
Tim: Tim I just have a couple of questions a little bit on the details on the operational beds here today.
Speaker Change: Were already covered.
Speaker Change: The first question has to deal with.
Speaker Change: The rehabilitation you had mentioned it before but I kind of missed maybe one part of the response is this kind of rehabbing, the browse and access points to long haul stopes.
Speaker Change: As before that are kind of undergoing rehab or.
Speaker Change: Any of that has to do with kind of fine tuning blasting and timing.
Speaker Change: To prevent hang ups and things like that.
Speaker Change: Again this is a direction for our FY <unk>.
So our <unk>.
Speaker Change: Broker hybrid firms.
Closer to our historical.
Speaker Change: When we get closer to that when you get to the run rate.
Speaker Change: To make sure to remind me.
Speaker Change: Third quarter surgical market, but when we get to that though we always reassess what the client.
Speaker Change: We need to make sure to offer copper pillar.
Speaker Change: Improved recovery and make sure we keep it.
Speaker Change: With regard from farmer first authorized levels.
Speaker Change: Always evaluate if we have it.
Speaker Change: We have built the product from a historical scope, especially where it results in particular place or just a matter of fact, when the times, where first of all equipment before we can before we get there.
Speaker Change: Got it.
Speaker Change: I think we're a bit too small for primarily due to project.
Speaker Change: He sort of works to make sure for <unk>.
Speaker Change: Okay, that's really helpful.
Speaker Change: And so all the steps that you have currently developed.
Speaker Change: Or are in development and are being rehab or are these all long haul kind of access or planned to be long haul stopes are there any cut and sell being planned for these initial steps by Chad.
Speaker Change: So Greg Bier, Linda we don't do long haul our broker we harvest clinical trial.
Speaker Change: Last year and all the way through a sampling of our long haul.
Speaker Change: So it's something we want to do our lumber work bring their cost down.
Speaker Change: Yes.
Speaker Change: So currently our power production volume.
Speaker Change: <unk> carbon sales.
Speaker Change: Sure.
Speaker Change: All hallmarks here and were actively working on that as part of our long term plan.
Speaker Change: But we don't need it and when we do work with victory.
Speaker Change: Okay great.
So then of these current.
Speaker Change: Yeah.
Speaker Change: About 19, one or ones that are rehab care kind of up and running.
What kind of mucking rates are you kind of anticipating from these.
Speaker Change: These areas.
Speaker Change: In general just I guess trying to get an idea of how many ships are you sort of need to open.
Speaker Change: <unk> projected.
Speaker Change: With steady state production basically.
Speaker Change: Well.
We are on track for a stockpile that we have.
Speaker Change: First one for medicine are also on track for the mining rate yogurt, which has quite a bit of flexibility to increase.
Speaker Change: So we're not too concerned about the underground mining rate.
Speaker Change: We need to improve with Q3.
Speaker Change: Rob.
Speaker Change: Thus we are ongoing in October and November March dropped me. The final mining rates are what we're what we're looking for for the underground mining rate something between 50 and 102000 ton per day.
Speaker Change: We need to reach a number of ground, let's forget.
Speaker Change: 2025.
We're going to sequence with Norbert So we will remain flexible with Bob Evans.
Speaker Change: One more about the opportunities we have for when we where we were.
Speaker Change: Thank you remember to make sure both open pit and underground.
Speaker Change: We have we have affirmed the lumi.
Speaker Change: Okay and I.
Speaker Change: I guess also one other question on the backfill it mentioned Theres a backfill station that is currently underway.
Speaker Change: Is that like are all the bar holes drilled an uncertain place and kind of trunk lines and piping there.
Speaker Change: This is just part of the commissioning that you were just sort of talking about moving through or is this.
Speaker Change: Our new backfill station for a different area that you haven't quite access yet just trying to get some more color on that statement from the MD&A.
Speaker Change: Oh, Okay, yes.
Yes.
Speaker Change: Fair enough on that.
Speaker Change: So first of all it's Paul we have cervical access points North America every level from the government from Bayer.
To make the turnaround for the waste rock.
Speaker Change: Everything is installed.
Speaker Change: I mean, we're talking about commissioning.
Speaker Change: We're aggressive.
Speaker Change: Once we go with them too.
Speaker Change: Thanks, Brian so a bit more hiring to date.
Speaker Change: I was going to change the whole part.
Speaker Change: Paul and Paul.
Speaker Change: We seem to get it back up on the customer markets.
Speaker Change: Okay, great. So it's just the main backfill station I wasn't sure sometimes like if you have a little substations under Johnson like call them station. So I didn't know that was something separate that you're referring to but that makes that makes a lot of that that's really helpful.
Speaker Change: And then I guess my last question sorry for Hogging the line on the all of the details but for ventilation.
Speaker Change: So for the last 1925 range to the upper levels. So that's planned to be commissioned at the end of this year with kind of still being planned basically right afterward.
So that is that rates will kind of open up the upper levels.
More of the higher grades and things are.
Speaker Change: As well I just wanted to kind of confirm that that's still kind of the case.
Is there anything else hold up.
Speaker Change: Hold up but is there a sequencing that unlike on stoping. That's required ahead of accessing those upper levels or once said that raises in place can you start.
Speaker Change: With your access drives it and begin.
Speaker Change: Stoping kind of right afterwards basically.
Speaker Change: Okay. So some records firm.
Speaker Change: Most of that work for early 2023 in early 2024, we have two ventilation rated walnut goes from surface mine level and.
And another one that goes all regards ranked in 'twenty five.
Speaker Change: Australia.
Speaker Change: So both of our main planned for any of our funds and we also have Oh.
All of our Columbia River.
Speaker Change: All the way down to 1925 as well.
Speaker Change: Go down 900, we'll need we'll need to have the entry level.
Speaker Change: Which is which was done very quickly and we also have.
Speaker Change: First on the restoration.
Speaker Change: So any we've.
Speaker Change: We never had any issue of information because we are in the noncore most upper level of the <unk>.
But or level we've completed.
Speaker Change: So again very strong all the way and most important part and we can use our group operations 900 aircraft will get the other rate of all.
Speaker Change: The engineering is done put around holding down so all of engineering for some level of $19 45, Oh it off the ground.
Speaker Change: Murray.
Electrical bumping the server so that our partners are going very well.
Speaker Change: Okay.
Speaker Change: Sure.
Something that we worked out for one product okay.
Speaker Change: Okay great.
Speaker Change: And then I guess the last question.
Speaker Change: On the right.
Speaker Change: I saw it in the press release I, just wanted to double check what's the current processing rates.
Speaker Change: Plant.
Alex I think it's interesting.
Speaker Change: <unk> going really well there.
Speaker Change: The gold mill kind of adjustments in that.
And kind of re commissioning that whole spot, but just yeah I just wanted to check with the current practicing writers.
Speaker Change: Well, thanks for asking it on arm enrolling 504, a barrel ramp up recovery, resulting so I was looking forward.
Speaker Change: So let's.
Speaker Change: Let's talk about our crushing profit growth fully operational.
Speaker Change: One four.
Speaker Change: Excellent great.
Speaker Change: We're still information I'm, just talking about the integrated here the rest of the circuit.
Go through I mean, we are.
Speaker Change: We reached a 100 ton per hour.
Speaker Change: We're pleased with the improving every day every minute.
Speaker Change: Right.
Speaker Change: <unk> breakeven.
Speaker Change: So we've been leasing for about a week now couple of weeks ago, our permission the ROA ROE and we've been producing our first overtake for Q&A.
Speaker Change: We hope that the board on fire last week, the mill was running and we did.
Speaker Change: Evercore, we're very.
Starting with the commissioning is going on with the condition.
Speaker Change: <unk>.
Speaker Change: The entire team is working day and night.
Speaker Change: And we're very excited that we started producing silver Kate.
Our first no there is no real bottleneck.
Speaker Change: Small small tweaking on Q&A and programming every day.
Speaker Change: And we're very excited so we start producing overtaken the funnel for all of us.
Speaker Change: That's really great to hear.
Speaker Change: I asked that question.
Speaker Change: It was that it was such a quick turnaround from I guess the initial announcement.
Speaker Change: Having to make some.
Speaker Change: Hum at it let's call it.
Speaker Change: The entire mill circuit and yeah, that's really great to hear it sounds like things are going quite well, while there to tell us yes.
Yes that was all my questions for today, but thanks, so much again for the time and for answering all my questions and all the best look forward to talking to you guys next quarter.
Thank you.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, I'm showing no further questions in the queue.
Speaker Change: Now I'd like to turn the call back to Bill for closing remarks.
Bill: Thank you. Thank you very much for attending and thank you for the questions. Thank you for asking other new plant is coming because at the end of the day that that is so important.
Bill: And it's.
Bill: As we have done this deal.
Bill: Right.
Bill: On time.
Bill: Except for the <unk>.
Bill: At the beginning of except for this little problems.
Bill: The lubrication systems.
Speaker Change: The budget.
Speaker Change: All of our global reach.
Speaker Change: The plant in Morocco.
Speaker Change: As exceptional costs.
The low end, where you would see it around the world and the.
Plan is extremely robust.
We have seen it there this week.
And it is extremely robust and HEICO to meet the ramp up is ongoing.
Speaker Change: It will be very interesting.
Speaker Change: The power plant will add one other.
Speaker Change: It was presented.
Hi.
Speaker Change: We have flexibility.
Speaker Change: Three sources of ore we are opening which is also giving us very positive surprise.
Speaker Change: We were there.
Speaker Change: Very careful at building a stockpile, we originally planned for $200.
At the end of the quarter, we were at 367.
Speaker Change: So we had.
Speaker Change: After a year or 100 and some days.
Or ready to go that's already been mined that is inventory that we have.
Speaker Change: The underground mine, which yes is needs to ramp up like a flat, but it is being done it is it is Kevin.
And increasing.
Speaker Change: I did mention that we did in one day.
Speaker Change: In this quarter in Q4 of 1600 tons per day, that's not where we are today, but we did it the teams have been dealt with now have 1300 employees on site.
Speaker Change: The teams and the teams are going to grow seemed a little bit.
Speaker Change: Discussed that this morning, we're going to grow the team, especially for the underground.
So flexibility in mining is key and the open pit.
Speaker Change: This better than expected and now some of you deciding where say.
Speaker Change: It's an open pit.
Speaker Change: We're getting at the moment the first 200 meters is above the base camp.
So there is a margin.
Speaker Change: 100 meters, where does mineralization.
Speaker Change: So were any of that Madison running now slowly.
Speaker Change: At the very very first level and the grade is good we see extension.
Speaker Change: Contractors doing very good job and we will take the range from 500.
Speaker Change: We have to stockpile and the underground.
Speaker Change: And is it is just getting better.
Speaker Change: And as we.
Speaker Change: We wanted to be disciplined in mind.
Speaker Change: That's extremely important to be disciplined and if we do get lower grades. This year, we will take it out of the regulator.
Speaker Change: Next is going to get a better grade discipline in Miami is the key and we are extremely disciplined we are also very disciplined.
Speaker Change: So if something looks a little weak or.
Speaker Change: You need to step back a little bit.
Speaker Change: Secure.
Speaker Change: We do that we have a very good director.
Speaker Change: Health and safety as we want to continue that way no casualty our LTI is extremely good and we want it. So you have a company that is well capitalized.
Speaker Change: Land at $99 99, nine mill that is nutrition and taking a look at the last video videos beautiful. It's widening it's over it has capacity to grow and it is just about done.
We also.
Speaker Change: The Big story for Eylea is the exploration upside.
Speaker Change: We have between 16 and 17 drill asserted sometimes a little our seadrift upgraded without our bullet up.
Speaker Change: But it's three.
Speaker Change: It's a very big program that it was telling us this morning.
Speaker Change: People on his team running exploration between.
Speaker Change: If you exclude there is good there regional so when you have a 160000 meters of drilling.
Many targets and structures.
Speaker Change: Yes, very very good results. So when you see.
Speaker Change: When their new plant coming to life, where you see the drilling continuing the exploration results continuing.
Speaker Change: The stability of the car.
Speaker Change: We are in as you know is extremely jurisdiction is a key component.
Speaker Change: Our mining these days and we are in probably one of the best jurisdiction in the world for modeling.
Speaker Change: <unk> is an extremely motivated.
Speaker Change: Show you.
Speaker Change: How strong is that project.
Speaker Change: It will continue.
Speaker Change: And on corporate social responsibility side, we continue to add fantastic success, we will put out a video most likely next week on the SaaS <unk> farm that we are sponsoring you will see is very very nice extremely interesting and thats part of our social.
For this drop.
Speaker Change: That concludes this issue.
Speaker Change: The Q3 call.
Speaker Change: It's not a quarter that we.
Speaker Change: Please.
And we saw some of the notes this morning.
Speaker Change: Based on this on cost and therefore this is on production and there is a mix upgrade but again they are young this is Greg.
Speaker Change: Mr. Greg if you look at the throughput at the two plants.
Better than last quarter, if you look at the availability under the two 5%.
Speaker Change: So in the process, we've capitalized development. So I agree that it's not a word lights.
Speaker Change: And we know that equipment ready to ensure that we can address that.
Speaker Change: As explained why and we believe that going forward.
Turning back to work.
Thank you very much we will see you in the queue.
Speaker Change: Q1 for the year end call, where we will have a full year of operation keep watching our little.
Speaker Change: There'll be more to come on corporate social responsibility and the plant as well and we look forward to keep you informed thank you very much.
Speaker Change: Ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Okay.
Speaker Change: Okay.
Speaker Change: Okay.