Q4 2024 Dundee Precious Metals Inc Earnings Call

February 14, 2025

[music].

Navin Dyal: Copper production over the next three years is expected to average approximately 30 million pounds per year based on current mine plans. All-in sustaining costs over the next three years is expected to average approximately $865 per ounce of gold sold. Continuing to position DPM as one of the lowest cost, highest margin gold producers. Our outlook reflects variations in gold and copper production, and sales year-over-year, as well as the impact of higher local currency operating costs, and allocated general and administrative expenses, partially offset by a stronger US dollar assumption relative to the euro. We are forecasting consistent investment in exploration over the next three years, reflecting our success in generating value through the drill bit.

Navin Dyal: Our sustaining capital over the next three years has remained unchanged from our previous outlook, with the exception of sustaining capital at Ada Tepe in 2025, which is expected to be approximately $14 million, which includes reclassified expense costs for waste stripping. Our three-year outlook for growth capital primarily relates to the Čoka Rakita project, which is expected to commence construction mid-2026 and achieve first production of concentrate in 2028. The company will start capitalizing costs related to the Čoka Rakita project from 2025 onwards as a result of the project's advancement to the feasibility study stage. In 2025, growth capital expenditures also include expenditures related to the Loma Larga gold project, including planned expenditures to complete an updated feasibility study in Q2 2025.

Navin Dyal: Upon achievement of certain milestones for the project, the company may increase its guidance for capital expenditures related to the Loma Larga gold project. We continue to maintain a strong balance sheet and cash position with a consolidated cash balance of $635 million, no debt, and a $150 million undrawn revolving credit facility. Including an additional $171 million in cash received in early January 2025, following the conclusion of the DPM tolling arrangement as part of the Tsumeb disposition, our year-end cash balance rises to over $800 million. As Dave pointed out during his remarks, we have consistently demonstrated our disciplined approach to capital allocation, which is based on three fundamental considerations.

Navin Dyal: Maintaining a strategic cash position to fund organic growth and pursue strategic transactions, reinvestment in the business to grow value and the long-term sustainability of our business, and returning excess capital to shareholders through a mix of dividends and share repurchases with a view to maximizing total shareholder returns over the long term. In line with this approach, over the past five years, we have returned $261 million of capital to shareholders, approximately 25% of our total free cash flow over that period. In 2024, we repurchased 5.7 million shares at a total cost of $50.9 million under the company's normal course issuer bid, or NCIB, and paid $28.9 million of dividends. The current NCIB expires on 17 March 2025. The company's board of directors has approved the renewal of the NCIB subject to approval by the TSX.

Navin Dyal: The company expects to be able to purchase up to 10% of the public float of common shares over a period of 12 months under the renewal. Continuing our track record of peer-leading capital returns, for the calendar year 2025, the company's board of directors has authorized the repurchase of up to $200 million worth of the company shares. We ramped up share repurchases through January in line with this approach. In closing, we continue to deliver strong performance from our mining operations, and we are in a strong cash position to achieve our guidance, and continuing our track record of generating significant free cash flow. I'll now turn the call back to Dave for conclusion.

David Rae: Thanks, Nav. It's another exciting year for DPM as we advance our organic pipeline and continue to build value and momentum in 2025. Our portfolio is generating solid, consistent results, and we're very well positioned as one of the lowest cost producers. We're harvesting free cash flow and delivering peer-leading returns to shareholders through our enhanced share buyback program. We're also progressing the Choquehuayta feasibility study for an accelerated construction decision. We got substantial financial strength to fund growth opportunities and fund exploration following our success in 2024, and we're focused on executing our strategy to deliver above average returns for our shareholders, as a mid-tier precious metals company. DPM is a clear path forward, and we're very excited about our future, and I'd now like to open up the call for any questions.

Good day, and thank you for standing by welcome to the Dundee precious metals fourth quarter 2024 earnings results Conference call.

This time, all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you would think.

Or an automated message it biting your hand as ways to withdraw your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference how would you speak with the de Gen. Four camera. Please go ahead.

Speaker Change: Thank you and good morning, Jennifer camera and director of Investor Relations and I'd like to welcome you to the Dundee precious metals fourth quarter conference call. Joining us today are members of our senior management team, including David Ray, President and CEO, and Dave and dial Chief Financial Officer.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question today comes from Cosmos Chiu of CIBC. Your line is open.

Speaker Change: Before we begin I'd like to remind you that all forward looking information provided during this call is subject to the forward looking qualification, which is detailed in our news release and incorporated in full for the purposes of today's call.

Certain non-GAAP certain financial measures referred to during this call are not financial measures recognized under Ifr and I referred to as non-GAAP measures are ratios. These measures have no standardized meaning under IRS and may not be comparable to similar measures presented by other companies.

Cosmos Chiu: Hi. Thanks, Dave, Navin, Jennifer, and team. Maybe my first question is on Ada Tepe here. I know it's coming to an end in terms of mine life. Dave, based on exploration and drilling, are you really not able to extend the mine life here? I remember I was on site with you when it first started. I was always thinking that there was a potential possibility sometime down the road that you could actually, you know, find more ounces, extend the mine life, but here we are.

Speaker Change: The definitions established and calculations performed by Dcms are based on management's reasonable judgment and our consistently applied.

Speaker Change: These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with I forgot. Please refer to the non-GAAP financial measures.

David Rae: Yeah. Cosmos, we continue to explore Ada Tepe, so we got $3 to 4 million in the budget for next year. It's recognizing that while there still may be some potential for additional ounces in the pit, you're not talking quarters or years, you're talking about maybe months. What we're focused on is what the potential future for these assets. It does take a good amount of time to permit mining projects in Bulgaria. What we're doing is we're making the decision that even if we found something today, it's gonna take probably two years or more to permit a new project.

Speaker Change: Most recent MD&A for reconciliations of these non-GAAP measures.

Speaker Change: Please note that unless otherwise stated operational and financial information communicated during this call are related to continuing operations and have generally been rounded references to 2023 pertained to the comparable periods in 2023 and references the averages are based on midpoint of our outlook or guidance I will now turn the call over to David.

Speaker Change: Yeah.

David Ray: Thank you Jonathan good morning, and thank you all for joining us.

Our excellent Q4 and year end results reinforce the DPM strengths that underpin our strategy to become a mid tier precious metals company.

David Rae: With that being the case, we've decided that the right thing to do at the moment is on completion of the Ada Tepe mine and the treatment of that material, we will basically move our assets across to Čoka Rakita. We continue to explore and have additional plans, particularly around the current asset over the next year or two to do that. Like I said, if we do find something, it's gonna be a long-term opportunity as an organic growth, an organic project. It's quite likely that the metallurgical process could be different from what we've got, which also then means that it could make sense for us to reuse that facility at Čoka Rakita in the interim.

David Ray: First we are a responsible and efficient operator.

David Ray: We once again achieved our gold production and all in sustaining cost guidance, continuing our exceptional track.

David Ray: Track record of delivery.

David Ray: Most importantly, we have accomplished this while maintaining our high standards for responsible mining with a strong safety and environmental track record, which is ranked at the top of our industry for the past four years.

David Ray: Second we focused on developing quality assets, we've rapidly advanced choker Makita, a testament to the quality of our team and project.

David Ray: Leading the pre feasibility study at the end of last year and we are focused on completing the feasibility study by the end of this year.

Cosmos Chiu: Great. Maybe this will make Navin's life even harder, but, you know, whenever there's a mine closure, there's always accounting complexities. I think, Navin kind of touched on it in terms of some of the stripping costs. Is there anything that we should be aware of? Like depreciation can be a bit wonky as you enter the last years of a mine life. Any closure costs, reclamation costs that we should be aware of, which can be even more complex since you're transferring some of the equipment to Serbia. Or is that really a 2026 issue? Anything that you can share with us?

David Ray: We have a proven track record in project development, having delivered the $190 million added to the project on time and on budget as well as the shelf edge expansion that doubled production.

David Ray: And other investments to improve operations and enhance value.

David Ray: And we have also established our exploration credentials.

David Ray: With three discoveries in Serbia, and our long track record of adding mine life at <unk> and <unk>.

David Ray: Exploration will continue to be a significant DPM focus in 2025.

Third we maintain a strong financial position to support growth. So we've consistently delivered free cash flow generation, including a record $305 million in 2024, which is growing our cash position to over $800 million at the beginning of 2025 and further strengthened our financial capacity to fund growth.

Navin Dyal: Sure, Cosmos. Yeah, it's probably more of a 2026 impact, but to note that we already have an asset retirement obligation for Ada Tepe. I don't think that's going to change much with our decision to move that equipment over to Čoka Rakita. As we've said before, the reason we're doing that and the real benefit to doing that is really from a timing perspective in terms of execution of the plan to complete Čoka Rakita. It's not so much going to save us a whole lot of money. We have in our account records in our books an asset retirement obligation. We also have reclamation letters of credit that we have outstanding as well.

David Ray: I'm talking about investors are benefiting from our low cost high margin gold production as we harvest free cash flow by returning excess capital to shareholders.

David Ray: We've returned $261 million to shareholders since 2020.

David Ray: Plan up to $200 million of additional share purchases in 2025.

David Ray: Yes.

David Ray: Overall, our accomplishments in 2024.

David Ray: Excuse me have culminated in an exceptional track record that provides confidence in our ability to grow the business and deliver on our strategic objectives to become a mid tier precious metals company.

Navin Dyal: I don't think you should expect to see anything unusual, as part of that.

David Ray: As we enter 2025, we focused on growth as demonstrated by the advancement of our exploration and project portfolio, which is reflected in our three year outlook.

Cosmos Chiu: Great. One last question on Ada Tepe. You know, as you mentioned, you're taking some of the equipment and infrastructure again to Čoka Rakita. How about the employees? Like, are there any plans for the employees at Ada Tepe?

David Ray: <unk> will review the details in a moment so I'll emphasize our priorities we continue to fund our high quality organic growth pipeline by investing more than $90 million. This year.

David Rae: You know, we take a lot of pride in developing people in the place at which we operate longer term, but certainly there's opportunities in the meantime. We will be doing training of people from Serbia at Ada Tepe. We'll also be having our maintenance people, you know, the assumption is we'll have our maintenance people supporting, you know, the commissioning activities that we have at Čoka Rakita. You know, we do have opportunities for employment, but what we are also trying to do as an alternative to that is we're looking at what we can do to continue our support of developing small businesses with the people at our site, and we're encouraging them at the moment to look for opportunities that are not related to the mine and therefore can outlast the mine.

David Ray: Growth capital and exploration.

David Ray: Blowing on several recent successes. We also continued to deliver on a strong operational track record producing just under 200000 ounces of gold and 30 million pounds of copper annually over the next three years and continue to be one of the lowest.

David Ray: Cost gold producers.

David Ray: Turning to chart that Ricky what makes Chucker Ricky to particularly exciting is the significant exploration potential within the footprint of the project.

David Ray: We have made two additional discoveries dimitri and phrase and prospects, which are located approximately one kilometer north of children with Kita.

David Ray: Results from these targets are demonstrating <unk> potential for high grade copper gold mineralization and we are completing additional work in order to understand the footprint the continuity the overall site potential in the metallurgy.

David Rae: Currently, we've got about half of our employee base in terms of numbers, so around 140 to 150 people employed in small businesses that we've encouraged and supported the development of through the course of the life of mine of the project. We're gonna continue to do things that encourage that going forward. It's a mix of different things. At some point, there will be transfer of people, particularly to support the early days of the operation. We'll have some commissioning and maintenance opportunities, which again, you know, complete the construction involved in the commissioning. In addition to that, we'll be doing what we can to mitigate the impact by continuing to support small business generation in Ada Tepe.

David Ray: This will be a significant focus for us in 2025 with planned exploration spending of between 23 and $25 million and similar levels forecast of 26% in 2007.

David Ray: With choker Rachida outgrowth priority is advancing shelter located to production, which is targeted for 2028 and less than 24 months since announcing the initial discovery, we have outlined the very robust highly value accretive project that adds high margin Gulf production growth to our portfolio.

Cosmos Chiu: Mm-hmm. Great. Dave, maybe one last question here. You know, great to see that Čoka Rakita is really moving ahead, and you have, you know, a target of starting production in 2028. When I look at your three-year production guidance last night, nonetheless, you know, based on our discussion on Ada Tepe as well, there's gonna be a dip in 2027 in terms of production. Is that something that keeps you up at night? Maybe a second part to that question is, as you mentioned, Navin mentioned over $800 million in cash and liquidity or in cash, not just in cash. You've touched on capital allocation. You've touched on return of capital. You've touched on reinvesting in the business.

David Ray: We proceeded immediately to a feasibility study while advancing permitting activities in parallel with a goal of commencing construction in mid 2026, and 2025, our focus will be on completing surface and underground geotechnical and hydro geological drilling and the completion of the feasibility study, which is expected by year.

And.

David Ray: Completed in December the PFS results featured several improvements from the pega, including accelerated gold production in the first five years, averaging 170000 ounces of gold per year.

David Ray: Lower all in sustaining costs, which we now expecting a $644 per ounce of gold over the life of mine and the Derisk project timelines and execution plan.

Cosmos Chiu: Could you maybe talk a bit more on external opportunities as well to the extent, you know, anything that you can share with us?

David Ray: And we could be intend to utilize existing processing facilities and mine equipment from added turbine leveraging the project's proximity to cello pitch to train and develop key personnel for operated wells.

David Rae: Okay. Let's start with does it keep me awake at night? Obviously prefer to be, to have a growing profile, moving forward. Clearly not the situation with Ada Tepe coming off in 2026 and continuing to develop through that time Čoka Rakita, but being absent a second operation until the second half of 2028. I would say that's priced into our share price. From a share price point of view, that's not really an issue. Obviously, we would like to see an ability to grow the organization. What are we doing? We do keep an eye out for M&A opportunities. We're particularly looking for things that we can bring synergies to because it's a highly competitive environment where people are paying full price and more for other assets.

David Ray: Overall, we're very excited <unk> has potential in a region, where we've had a presence for many years as.

David Ray: And that has a long history of exploration and mining development and where we've developed strong relationships with local stakeholders.

David Ray: With <unk>, specifically Chellup Etch mine lives. We're also prioritizing in mind in brownfields exploration work to further extend mine life targeting an increase to over 10 years, reflecting this priority in 2025, we are increasing the brownfields exploration budget for <unk> as we focus on testing near mine targets on.

David Ray: The <unk> concession.

David Ray: <unk> today has a mine life that extends to 2032 based on our reserves a substantial $1 2 million ounce mineral resource base and a 41 100 hectares of land package with significant opportunities to.

David Rae: We do continue to look for that. If you go back to the Osino transaction, we're disciplined in terms of you know what we are prepared to do. It needs to be in and of itself, interesting as an asset we might consider. First of all, quality, then we consider risks, and then we sort of bring what we can provide in terms of technical access, expertise, or perhaps if it's an operating asset, our operating track record, bringing improved, you know, production, reliability and performance. We're very well positioned, I think, to be able to act on these value-generating opportunities. Like I said, I would prefer it that we had a growth profile rather than a dip in 2027, but that's not what's keeping me up at night.

David Ray: To continue the track record of mine life extensions. In addition, the cello patch north concession approval is anticipated before the end of 2025 and we've just received the geological discovery confirmation in Q4 prevent it.

David Ray: But low Melaka the progress we've made with permitting.

David Ray: In 2024, we've chosen to complete an updated feasibility study for the project in the second quarter of 2025. This will update the project economics to reflect the current gold price capital and operating costs as well as demonstrating the value and optionality for our growth portfolio.

Cosmos Chiu: Great. Thanks Dave and team. Those are the questions I have. Thanks a lot.

David Ray: Informed indigenous consultation process, which is the last step of four before the environmental licenses issued that was also initiated and engage with the community engagement with the community progressed during Q4.

Operator: Thank you. Our next question comes from Don DeMarco of National Bank Financial. Your line is open.

David Ray: For 2025, we had budgeted $12 million to $14 million in growth capital for 11, a lager, reflecting the updated feasibility study and our disciplined approach to the business we will continue.

Don DeMarco: Thank you, operator. Good morning, Dave. Congratulations on a strong Q4 and also strong outlook in 2025 guidance. First, looking at the Chelopech production outlook, what drove the favorable delta versus the 2023 mine plan, particularly in 2027, where I see the outlook at about 20,000 more ounces of gold per year than the mine plan?

Locating additional capital to the project.

David Ray: Depending on achieving certain permits permitting milestones.

David Ray: And the intent will be to fund resuming drilling and further advancing patents.

David Ray: <unk> remains an attractive growth option in our portfolio with mineral reserves of one 9 million ounces of gold and 80 million pounds of copper.

David Rae: Anytime that we do a review of the outlook, we consider, you know, what opportunities do we have to maximize value of the asset. While we're very disciplined and we don't make changes, let's say for frivolous reasons, we are constantly looking to see what those opportunities might be in terms of sequence of opportunities. We also bring in, of course, what additional drilling information we have as we get closer to these assets to production. We have more information at a, you know, a tighter drill spacing. I would say this is just part of our ongoing review when we do look at the outlook.

David Ray: He is a great fit with our technical and operating expertise.

Speaker Change: I'll now turn the call over to <unk> for a review of the financial results.

Speaker Change: Thanks, Dave I'll be touching on the financial highlights for the year provide an overview of our 2025 guidance of three year outlook and conclude with some commentary on our balance sheet at a return of capital program.

All of my remarks will focus on results from continuing operations unless otherwise noted.

Speaker Change: Looking at our financial highlights for the year, we achieved consolidated production and cost in line with our guidance and delivered record financial results.

David Rae: We look, you know, one year out, two years out, five years out in terms of the sort of windows that we look within, and then what new information is coming in, what does that tell us in terms of how we can actually maximize the asset. I would say one of the reasons that we've been successful with our all-in sustaining costs over time is we continue to look for these opportunities to maximize the asset. That's why you see that type of variability.

Speaker Change: Revenue of 607 million.

Speaker Change: The net earnings of $232 million or $1 29 per share.

Speaker Change: Cash flow provided from operating activities of $297 million and free cash flow of $305 million.

Speaker Change: Overall results during the year reflect our strong operating performance, our low cost structure of our operations and a favorable commodity price environment.

Don DeMarco: Okay. I'm encouraged to see that. What is the pecking order of prospects at Chelopech? I mean, the financials, the MD&A mentioned Sharlo Dere, target 154. When do you expect a potential resource for these and or an updated mine plan at Chelopech?

Speaker Change: Looking at our earnings and cash flow in more detail revenue was higher than the prior year due primarily to higher realized metal prices and lower treatment charges at <unk>, partially offset by lower volumes of gold sold at a topic.

Speaker Change: Adjusted net earnings increased compared to the prior year due primarily to higher revenue and interest income, partially offset by higher planned exploration and evaluation expenses higher income taxes and higher labor costs.

David Rae: I did say that we'd be doing work through 2024 and part of 2025 in terms of Sharlo Dere, which is one of the areas where historically there's not been a lot of drilling and we've been focusing our attention. That's certainly one, and that's effectively in the gap between the center of Chelopech and up towards the northeast. That's something that you'll see additional information coming out during the course of this year. Other things at Chelopech can be smaller but high grade. If you remember back to 147 and 154, well, 154 specifically, this was a smaller but high-grade asset quite close to existing infrastructure that we identified back in about 2015.

Speaker Change: Cash flow provided from operating activities was higher than the prior year due primarily to higher earnings and higher cash interest received.

Speaker Change: Partially offset by the timing of collections for sale and payments to suppliers.

Speaker Change: Free cash flow, which is calculated before changes in working capital was higher than the prior year due primarily to higher earnings generated during the year.

Speaker Change: Taking a closer look at our cost metrics all in sustaining cost of 872 per ounce of gold sold for the year was 3% higher than the prior year due primarily to lower volumes of gopro higher labor costs and timing of maintenance activities, largely offset by lower treatment charges, a sharp edge and higher byproduct credits as a.

David Rae: Subsequently, I think we ended up with about 4 million tons coming out of that area and high grade value at that. At this point as well, we're also working on something called 700. We've got 147, 149. There's tons and there's quality in terms of this conversation, and I would say Sharlo Dere is more likely to be tons, and quality would be things like area 700 and seven and so on, 149, 147. I also mentioned earlier on that one of the things that we're doing to try and increase our real estate we can work within is adding Chelopech North.

Speaker Change: <unk> of higher realized copper prices.

Speaker Change: In terms of our capital spending sustaining capital expenditures of $34 million for the year were higher compared to 2023, due primarily to the timing of expenditures and higher deferred stripping costs as a result of higher stripping ratios at a tepid.

Speaker Change: Growth capital expenditures of $17 million for the year were lower than the prior year due primarily to lower capital expenditures related to the local Arca gold project as expected.

David Rae: This was previously Brevene, and we're anticipating during the course of this year to get the concession for that to be able to do more work there and consider bringing that into our mine plans. Then we've just gone to a geological discovery at Sharlo Dere. What this is doing is it's opening up the opportunity rather than just being constrained to the concession. Our primary goal at Chelopech is to get to beyond 10 years of mine life as an imperative. You know, we believe that the opportunity is there, and that's why we've ramped up the amount of spend that we have in 2025.

Speaker Change: Last night, we provided an updated three year outlook, which has been outlined in detail on slide 15 of the webcast.

Speaker Change: We continue to fund our high quality organic growth pipeline, while maintaining our portfolio of high margin operation, which has generated our exceptional track record of delivery.

Speaker Change: Over the next three years gold production is expected to average approximately 200000 ounces per year bolstered by strong and consistent performance for <unk>.

Speaker Change: <unk> production profile reflects the mine life ending in mid 2026.

Don DeMarco: Okay. Well, thank you for that, and we'll stay tuned as drilling progresses at Chelopech over the year. So question for Navin. Navin, in Q4, it appears that there was another $60 million spent in buildup of working capital related to Tsumeb. What was the nature of these expenditures, and did the post-quarter $170 million cash inflow include a repayment of this?

Speaker Change: In line with our plans to utilize its processing equipment and infrastructure for the sugar Akita project.

Speaker Change: I'd like to note that in 2025 gold production at <unk> is forecast to be approximately 50% lower than the first half of the year as compared to the second half due to sequencing of the cells of the integrated mine waste facility.

Speaker Change: Yeah.

Speaker Change: Copper production over the next three years is expected to average approximately 30 million pounds per year based on current mine plan.

Navin Dyal: The $60 million was additional purchases of concentrate material during that period of time as we were still within that temporary tolling agreement. The $171 million that you have there that we collected in the early part of January, $162 million of that, is essentially clearing out the majority of that working capital that we committed to those purchases of that raw material. It included a small portion of material that we sold back to IXM. There's a relatively small amount of accounts receivable still left to collect that we'll collect in the normal course over the next six months as that material processes.

Speaker Change: All in sustaining costs over the next three years is expected to average approximately $865 per ounce of gold sold continuing to position DPM as one of the lowest cost highest margin gold producers.

Speaker Change: Outlook reflects variations in gold and copper production and sales year over year as well as the impact of higher local currency operating costs and allocated general and administrative expenses, partially offset by a stronger U S dollar assumption relative to the euro.

Speaker Change: We are forecasting consistent investment in exploration over the next three years, reflecting our success in generating value through the drill bit.

Don DeMarco: Okay. Excellent. Thanks for clarifying that. Just as a final question, David, back to you. M&A, I mean, you've got a pipeline here with Čoka Rakita, you've got Loma Larga, which seems to be advancing. Is M&A part of your playbook? And how does it rank in terms of priority and where you might be looking at this point?

Speaker Change: Our sustaining capital over the next three years has remained unchanged from our previous outlook with the exception of sustaining capital at <unk> in 2025, which is expected to be approximately $14 million, which includes reclassified expense cost for waste stripping.

David Rae: Don, I think the priority depends on we keep a look for opportunities that make sense, you know, where we can bring synergy as an organization, as I already mentioned. That will stack up against the other opportunities that we have internally. We don't just see that we have Chelopech extension, Čoka Rakita, and Loma Larga as our opportunities. We think there's significant potential still in Serbia. Clearly, if there's more organic opportunity for us where we're not paying something up front in order to then build the project and realize value, that would take priority. I would say that we look for exciting opportunities that we can bring in quality first, can we manage the risk? What difference does it make to the organization?

Speaker Change: Our three year outlook for growth capital, primarily relates to the Choker Rachida project, which is expected to commence construction in mid 2026 and achieved first production of concentrate in 2028.

Speaker Change: The company will start capitalizing costs related to the choke Rohit a project from 2025 onwards, as a result of the project advancement to the feasibility study stage.

Speaker Change: In 2025 growth capital expenditures also include expenditures related to the lower electrical project, including planned expenditures to complete an updated feasibility study in the second quarter of 2025.

Speaker Change: Upon achievement of certain milestones for the project the company May increase its guidance for capital expenditures related to the level or the full project.

David Rae: Where would that fit in terms of our priorities? At the moment-

Speaker Change: We continue to maintain a strong balance sheet and cash position with a consolidated cash balance of $635 million.

Don DeMarco: Okay. Mm-hmm.

David Rae: Further up within our own portfolio as well.

Speaker Change: No debt and a $150 million undrawn revolving credit facility.

Don DeMarco: Okay. I think I heard you say that, right, there's good organic opportunities within Serbia, maybe Bulgaria. Those might take priority over, you know, singular, outright new M&A at this point.

Speaker Change: <unk>, an additional $171 million in cash received in early January 2025, following the conclusion of the DPM tolling arrangement, that's part of the CMS disposition, our yearend cash balance rises to over $800 million.

David Rae: It's, you know, it's a question of looking for what can actually change the dynamic of what's the priority. We'd love to have something that, you know. Effectively, we're focused on creating a platform for robust growth. That could be a mix of organic opportunities plus, you know, acquisitions. The intent is overall that we find something that's not for sure accretive with above average returns for investors.

Speaker Change: As Dave pointed out during his remarks, we have consistently demonstrated our disciplined approach to capital allocation, which is based on three fundamental consideration.

Speaker Change: Maintaining a strategic cash position to fund organic growth pursue strategic transaction.

Speaker Change: Reinvestment in the business to grow value in the long term sustainability of our business.

Don DeMarco: Okay, great. Well, thanks again for congratulations on the strong finish to the year, and good luck in 2025. Thank you.

Speaker Change: And returning excess capital to shareholders through a mix of dividends and share repurchases with a view to maximizing total shareholder returns over the long term.

Don DeMarco: Okay, great. Well, thanks again for congratulations on the strong finish to the year, and good luck in 2025. Thank you.

David Rae: Thanks, Don.

Operator: Thank you. Our next question comes from Jeremy Hoy of Canaccord Genuity. Your line is open.

Speaker Change: In line with this approach over the past five years, we have returned $261 million of capital to shareholders.

Speaker Change: Only 25% of our total free cash flow over that period.

Jeremy Hoy: Hi. Thanks very much, David, Navin, and Jennifer for taking my questions. A great quarter. I was hoping we could talk a bit about Loma Larga. We've been focusing on Čoka Rakita, the growth potential at Chelopech and M&A. You sort of have an opportunity in Loma Larga. It's been on the back burner. I think you're expressing a bit more confidence now moving ahead with this feasibility study. You know, if all goes well with permitting, and you get the green light to build that, how are you thinking about that asset strategically?

Speaker Change: In 2024, we repurchased five 7 million shares at a total cost of $50 9 million under the company's normal course, issuer bid or CIP and paid $28 9 million of dividend.

Speaker Change: The current and CIB expires on March 17th 2025.

Speaker Change: The company's board of directors has approved the renewal of the CIB subject to approval by the <unk> the.

Speaker Change: The company expects to be able to purchase up to 10% of the public float of common shares over a period of 12 months under the renewal.

Speaker Change: Continuing our track record of peer leading capital returns for the calendar year 2025, the company's board of directors has authorized the repurchase of up to $200 million worth of the company's shares and.

David Rae: Yeah, you know, thanks for recognizing that this is something that we've been basically playing fairly low-key while continuing to make good progress in terms of advancing some of the things we need to do to get to a construction decision. How does this fit, you know, should we get a green light? We have three out of the four items that we require at the moment to complete what was required by the constitutional court. We actually came very close to completing these before the end of the year. We anticipate that ongoing work with Escaleras, which is the community in which we have to do the prior informed consultation, that will happen and probably closing out at some time shortly after the second stage of the presidential election.

Speaker Change: And we ramped up share repurchase repurchases through January in line with this approach.

Speaker Change: In closing, we continue to deliver strong performance from our mining operations and we are in a strong cash position to achieve our guidance and continuing our track record of generating significant free cash flow.

Dave Dial: I'll now turn the call back to Dave for you.

Dave Dial: Thanks, Kevin that's another exciting year for DPM as we advance our organic pipeline and continue to build the value of the momentum in 2025.

Portfolio is generating solid consistent results.

Dave Dial: Very well positioned as one of the lowest cost producers, we are harvesting free cash flow and delivering peer leading returns to shareholders through share buyback program.

David Rae: At that point, we'll see, you know, what it is then we need to do. Let me just differentiate something just for clarity in terms of what we're doing in terms of the additional capital and operating cost assessment we're doing as part of the feasibility. The reason why we're doing this first piece of work now is we've realized that we haven't had an update since 2020 in terms of what would be the capital cost, what would be the operating cost, and what does that mean in terms of the valuation of the project. Historically, what we've done is we've said, when we get the clearance with the environmental commissions, we'll then go back in, do the drilling for geotech, hydrogeology, condemnation, as well as doing a small amount of resource drilling.

So progressing the choker Ricky to feasibility study for an accelerated construction decision. So we got substantial financial strength to fund growth opportunities and fund exploration. Following our success in 2024, and we focused on executing our strategy to deliver above average returns for our shareholders.

Dave Dial: The mid tier precious metals company DPM has a clear path forward and we're very excited about our future and I'd now like to open up the call for any questions.

Dave Dial: Thank you as a reminder.

Speaker Change: Can you. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

David Rae: We've not been able to do that to this point, and basically came to the conclusion that we'd like to do what we can to understand the value of this project and it be public. The intent of this first piece of work, which should be completed in Q2, is really to update the capital costs and the operating costs. From that then with the resource that we in 2023, then, you know, the value of this asset can be understood. There's still a further piece of work then to be done.

Cosmos: And our first question today comes from Cosmos <unk> of CIBC. Your line is now open.

Speaker Change: Alright. Thanks.

Speaker Change: <unk>, NAV and Jennifer and team.

David Rae: Once we get the environmental clearance, we'll still have to go in and do the drilling, which will be, you know, as I said, geotech, hydrogeology, condemnation, in order to confirm that all of the assumptions, particularly in the location of the metallurgical facility and the tailings facility, are correct. Then we'll finalize the feasibility study, which would then be the thing taking us to a decision on construction. Two different studies going on. When we talk about the work for Q2, it's really more intent surfacing and understanding value, and then there'll be a further piece of work after that.

Speaker Change: Maybe my first question is on the <unk> here.

Speaker Change: I know, it's coming to an end in terms of mine life.

Speaker Change: But Dave maybe starting exploration and drilling is there really are you really not able to extend the mine life here Liberals onsite. What you wanted to first start out I was always thinking that there was a potential possibility sometime down the road that you could actually.

Speaker Change: More ounces and extend the mine life.

Speaker Change: But here we are.

Speaker Change: Yes, Cosmos, we continue to explore that as I said, we've got $3 million to $4 million in the budget for next year, it's recognizing that while there still may be some potential for additional ounces in the pit.

Jeremy Hoy: Understood. Okay. That's great color. You know, in terms of, I guess sort of the strategic options, I assume you wouldn't want to build that at the same time as Čoka Rakita, but you know, maybe you could do if there's capacity on all fronts. You know, does it slot in right after? Would you consider partners, divesting it? Could you talk a bit about that?

Speaker Change: Talking.

Speaker Change: Quarters or years, you're talking about in 18 months.

Speaker Change: So what's really focused on is what the potential could be.

Speaker Change: For these purposes.

Speaker Change: Let's take a good a good amount of time to permits mining projects.

Speaker Change: <unk>. So what we're doing is we're making the decision that even if we found something today. It is going to say probably or more to permit a new project for that be into place. We've decided that the right thing to do at the moment is on completion of the.

David Rae: We're looking to realize value for the organization, and that could be any or all of what you just discussed. There are companies in the region that have a tremendous track record, which we could, you know, look to participate in what we're doing. It's obviously a decision to move ahead. It could also be a decision that it makes more sense with somebody else. If we find more within Serbia, that could be something we decide. Ultimately, it's all down to how is it that we develop an exciting organic growth portfolio which makes sense for us as DPM. At this point, Loma Larga, we believe, has got lots of upside potential. It's an attractive project given its large resource and upside on that resource, and it's got a relatively low all-in sustaining cost.

Speaker Change: At <unk> mine and the treatment of that material, we will basically move our assets across two choker with Kita, we continue to explore additional plans.

Speaker Change: Plans, particularly around the current asset over the next year or two to do that I would like to say, if we do find something its going to be a long term.

Speaker Change: The opportunity is on organic growth and organic projects and it's quite likely that the metallurgical process could be different from what we've got.

Speaker Change: Which also then means that it makes sense of US do we use that facility a chunk of it with either in the interim.

Speaker Change: Great.

Speaker Change: Maybe that'll make novel <unk>, even harder but.

David Rae: you know, I would say to your point, we would be open to different options in terms of whether we build it, others build it, and how we go about, you know, sort of taking that transition. It really depends on what's happening in the rest of our organic growth portfolio, and any potential M&A that we do in the meantime.

Speaker Change: Whenever there's a mine closure theres always accounting complexities I think now having kind of touched on it in terms of being some of the stripping costs.

Speaker Change: Is there anything that we should be aware of like depreciation can be a bit of wonky as you as you entered the last years of mine life.

Jeremy Hoy: Yeah, understood. A lot of factors to consider. Thanks, David. That's pretty clear. One quick final one from me. We've sort of been poking at this M&A question quite a bit, but I have a specific one from a client. In the past, you for opportunities and filters for opportunities, you've been pretty clear about the regions you like and size, which is, I believe, around 150,000 ounces or above. With Čoka Rakita already coming in and then Loma Larga, is there any, you know, opportunity to look at potential earlier stage things or even smaller producers below that 150 mark?

Speaker Change: Any closure costs reclamation costs that we should be aware of which can be even more complex since youre transferring some of the equipment.

Speaker Change: To Serbia.

Speaker Change: So or is that really at 2026 issue or anything that you can share with us.

Speaker Change: Sure Cosmos, yes, it's probably more of a 2026.

Speaker Change: Impact but.

Speaker Change: To note that we already have.

Speaker Change: Asset retirement obligation for <unk>.

Speaker Change: I think that's going to change much with our decision to move that equipment over to Chuck.

David Rae: Yeah, we're definitely open to. You know, all the conversations so far has been around the short term, and we're definitely open to longer term opportunities that may be a good fit with us as an organization as we look beyond, say, 2030. At this point, the opportunities up to 2030, you know, we're already stacking up a good list of things. By the way, I didn't answer your one question, which was, could we build Čoka Rakita and Loma Larga at the same time? The answer is yes. Financially, that would not stress the organization. We could still do that.

Speaker Change: Truecar Akita as we've said before.

Speaker Change: The reason, we're doing that in a real benefit to doing that is really from a timing perspective in terms of.

Speaker Change: Execution of the plan to complete shopper Akita not so much going to save us a whole lot of money.

Speaker Change: We have in our accounting records in our books.

Speaker Change: Retirement obligation we also have reclamation.

Speaker Change: Letters of credit that we have outstanding as well. So I don't you should expect to see anything unusual as part of that.

David Rae: I would say that, you know, in terms of what we're gonna do going forward, we're really intent on the overall health of the company and building an organization which is generating great returns, mid-tier producer, you know, bottom quartile of cost, generating free cash flow, and returning value to shareholders. How we get there will be something that will be dynamic with the extension and the performance of our current assets, what comes about in Serbia, which is something beyond just Čoka Rakita, as well as, you know, what opportunities transpire with Loma Larga or external acquisitions.

Speaker Change: Great.

Speaker Change: And then one last question on the tougher as you mentioned your.

Speaker Change: Taking some of the equipment and infrastructure again, two charcoal rachida how about the employees like are there any plans for the employees at other cafe.

Speaker Change: We take a lot of pride in developing people in the place at which we operate longer term, but certainly there is some opportunities in the meantime, we will be doing.

Speaker Change: Training those people from Serbia.

Speaker Change: <unk> will also be having all maintenance people, albeit the assumption is the level of maintenance people supporting.

Speaker Change: The commissioning activities that we have at children, we keep it.

Speaker Change: We do have opportunities for employment, but what we are also trying to do as an alternative to that is we're looking at what we can do to continue our support of developing small businesses with the people at all.

Jeremy Hoy: Yeah, definitely a lot of opportunity on that Čoka Rakita property there in Serbia. Well, great. Thank you very much for your answers, and have a great day and good luck in 2025.

David Rae: Thank you.

Operator: Thank you. I'm showing no further questions at this time. I'd like to turn it back to Jennifer Cameron for closing remarks.

Speaker Change: <unk> them at the moment to look.

Speaker Change: For opportunities that are not related to the mine and therefore can outreach.

Speaker Change: Less of the mine currently we've got about half of our employee base.

Jennifer Cameron: Well, thank you all for joining us. We hope you enjoy the long weekend for those of us here in Ontario. Should you have any questions, happy to connect. Thank you, and take care.

Speaker Change: In terms of numbers so around 140 to 150 people employed in small businesses that we've encouraged and supported the developments out through the course of the life of mine of the project and we're going to continue to do things that influence that going forward. So it's a mix of different things at some point they will be transfer of people.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Speaker Change: Particularly to support the early days of the operation that.

Speaker Change: And then we'll have some commissioning and maintenance.

Speaker Change: <unk>, which again complete the construction involved in the commissioning.

Speaker Change: Then in addition to that we will be doing what we can to mitigate the impact by continuing to support small business generation another tender.

Speaker Change: Great.

Speaker Change: And then Dave maybe one last question here.

Speaker Change: Great to see that.

Speaker Change: <unk> does really moving ahead that you have.

Speaker Change: Target of starting production in 2028.

Speaker Change: But when I look at your three year production guidance last night, Nonetheless based on the discussion on the <unk> as well.

Speaker Change: Kip.

Speaker Change: In 2027 in terms of production is that something that keeps you up at night and then maybe a second part to that question is as you mentioned and as I mentioned over $800 million in.

Speaker Change: Cash and liquidity in cash and cash.

And you've touched on capital allocation you touched on we're trying to capital you've turned off reinvesting in the business could you maybe talk a bit more on external opportunities as well to the extent.

Speaker Change: Anything that you can share with us.

Speaker Change: Okay. So let's start with does it keep me awake at night.

Speaker Change: Okay.

Speaker Change: We prefer to be to have a growing profile.

Going forward maybe not.

Speaker Change: <unk> coming off.

Speaker Change: Six.

Speaker Change: Continuing to devote to that talk silica wikia.

Speaker Change: In absence of second operation until the second half of 2028.

Speaker Change: I would say that's priced into our share price from a share price point of view, that's not really an issue, but obviously, we would like to see an ability to grow the organization. So what are we doing.

Speaker Change: We do keep an eye out for M&A opportunities, we are particularly looking for things that we can bring synergies to because it's a highly competitive environment, where people are paying full price and more for other assets. So we do continue to look for that but if you go back to the <unk> transaction, we are disciplined in terms of.

Speaker Change: We are prepared to do so it needs to be <unk> itself interesting as an absolute we might consider so first of all quality. Then we consider risks and then we sort of bring in what we can provide in terms of technical aspects thirties or perhaps it is an operating asset or operating track record, bringing improved production.

Speaker Change: Reliability and performance, we are very well positioned <unk> to be able to act on these value generating opportunities, but like I said I would prefer that we had a growth profile loved and it had been 2027, but that's not what's keeping me up at night.

Speaker Change: Thanks.

Speaker Change: Great. Thanks, Dave and team those are all the questions I have thanks a lot.

Speaker Change: Thank you.

Speaker Change: And our next question comes from Don Demarco of National Bank Financial Your line is open.

Don Demarco: Thank you operator, and good morning, Dave Congratulations on a strong Q4 and <unk>.

Don Demarco: And also a strong outlook in 'twenty five guidance. The first looking at the <unk> production outlook, what drove the favorable delta versus the 22 mine plan, particularly in 2007, where you see the outlook at about 20000 more ounces of gold per year than the mine plan.

Don Demarco: So any time that we do a review of the outlook, we consider what opportunities do we have to maximize value of the assets.

Don Demarco: So while we are very disciplined and we don't make changes, let's say for frivolous reasons. We are constantly looking to see what those opportunities might be in terms of sequence.

Don Demarco: Sequences opportunities opportunities. We also bring in of course, what additional drilling information, we have because as we get closer to these assets to production. So we have more information.

Don Demarco: Tied to drill spacing. So I would say this is just part of our ongoing with you when we do look at the outlook. So we look.

Don Demarco: One year out two years out five years out in terms of the sort of windows, but if we look within.

Don Demarco: And then what new information is coming in what does that Teva is in terms of how we can actually maximize the asset and I would say one of the reasons that we've been successful with our all in sustaining costs at the time as we continue to look for these opportunities to maximize the asset and Thats why you see that type of variability.

Okay, Okay, I'm encouraged to see that and.

Don Demarco: What is the pecking order prospects that shallow patch.

Don Demarco: <unk> financials.

Don Demarco: I mentioned Charlotte dairy target 154.

Don Demarco: When do you expect the potential resource for these <unk> and updated mine plan at Shelton.

Don Demarco: But it said that we'd be doing work through two.

Don Demarco: 2024, and part of 2025.

Don Demarco: In terms of Charlotte theory, which is that one of the areas, where historically there has not been a lot of drilling we've been focusing our attention. So that's certainly one and thats effectively in the gap between the sensor the cello pension up to we will see the northeast.

Don Demarco: So thats something that Youll see additional information coming out during the course of this year.

Don Demarco: Other things that <unk> can be smaller, but higher rates. So if you remember back to $1 47, and $1 64, while $1 54, specifically this was a smaller but high grade.

Don Demarco: Asset quite close to existing infrastructure that we identified back in about 2015, and subsequently ethane. We ended with about 4 million tonnes coming out of that area and high grade value of that so at this point is while we're also working on something called 700, we've got $1 47 $1 49.

Don Demarco: No.

Don Demarco: There's tons of this quality in terms of this conversation and I would say geology more likely to be tums and quality would be things like <unk> 707.

Don Demarco: Seven and so on 140 947.

Don Demarco: Then I also mentioned earlier on one of the things that we're doing to try and increase our real estate. We can work with them is adding <unk> north. So this was previously set at petco.

Don Demarco: We're anticipating during the course of this year to get the concessions for that to be able to do more work there and consider bringing that into our mine plans and then we've just gone to a geological discovery.

Don Demarco: Yes.

Don Demarco: What this is doing is it's certainly not the opportunity rather than just being constraints of the concession.

Don Demarco: Our primary goal at shell Apache is to get to beyond 10 years of mine life as an imperative.

Don Demarco: Leave that the opportunity is.

Don Demarco: And that's why we've ramped up the amount that we have in 2025.

Don Demarco: Okay, well, thank you for that and we'll stay tuned as drilling progresses that shell picture over the year.

Don Demarco: So question for now.

Don Demarco: So not in Q4. It appears that there was another $60 million spent and buildup of working capital great.

Don Demarco: What was the nature of these expenditures and did the post quarter 170 million cash inflow included repayment of debt.

Don Demarco: Yes.

Don Demarco: $60 million was additional purchases of concentrate material during that period of time as we were still within that temporary tolling agreement.

Don Demarco: And the $171 million that you have there there'll be collected in the early part of January $162 million of that is essentially clearing out.

Don Demarco: The majority of that working capital that we committed to.

Don Demarco: To those purchases of that raw material.

Don Demarco: It included a small.

Don Demarco: Through that we sold back to IBM.

Don Demarco: There is a relatively small amount of.

Don Demarco: Accounts receivable still left to collect that we'll collect in the normal course over the next six months as that material process.

Speaker Change: Excellent. Thanks for clarifying that and then just as a final question David back to you.

Speaker Change: M&A I mean, you've got a pipeline here with Coca Rachida, you've got normal argue we seems to be advancing.

Speaker Change: <unk>.

Speaker Change: Is M&A part of your playbook.

Speaker Change: How does it rank in terms of priority and where you might be looking at this point.

Speaker Change: John I think the priority it depends on the we keep if we keep.

Speaker Change: Look for.

Opportunities that makes sense, where we can bring synergy as an organization as I already mentioned and that will.

Speaker Change: Stack up against the other opportunities that we have internally. So we don't just see that we have.

Speaker Change: <unk> pension choker, Ricky the Loma lagers are opportunities. We think there is significant potential still in Serbia. So clearly if theres more opportunity for us where we're not paying something upfront in order to then build the project and realize value that would take priority, but I would say that we look forward to exciting opportunities.

Speaker Change: We can bring in quality first can we manage the risk what difference does it make to the organization and then where would that fit in terms of our priorities.

Speaker Change: But at the moment okay.

Speaker Change: Go ahead within our own portfolio as well.

Speaker Change: Okay. So I think I heard you say that.

Speaker Change: Great Thats, good organic opportunities within Serbia, maybe maybe Bulgaria, and so those might take priority over.

Speaker Change: Singular outright new M&A at this point.

Speaker Change: It's a question of looking for what can actually change the dynamic of what's the priority we'd love to have something that.

Speaker Change: But effectively we focus on creating a platform for robust growth and that could be a mix of all economic opportunities plus.

Speaker Change: Acquisitions.

Speaker Change: <unk> overall that we find something that's not per share accretive with above average returns for investors.

Speaker Change: Okay.

Speaker Change: Okay, great well, thanks, again for and congratulations on the strong finish to the year and good luck in 2009. Thank you.

Speaker Change: Thanks Bill thank.

Speaker Change: Thank you.

Speaker Change: And our next question comes from Jeremy <unk> of 10 Genuity. Your line is now open.

Speaker Change: Alright, thanks very much David.

Speaker Change: In general for taking my questions great quarter.

Speaker Change: I was I was hoping we could talk a bit about low the largo, we've been focusing on choke are key to the growth.

Speaker Change: Potential a cello patch in M&A.

Speaker Change: But you sort of have an opportunity in mobile larger it's been on the backburner I think youre expressing a bit more confidence now moving ahead with this feasibility study.

Speaker Change: Yes.

Speaker Change: If all goes well with permitting.

Speaker Change: You get the Green light to build that how are you thinking about that asset strategically.

Speaker Change: Yes.

Speaker Change: Thanks for recognizing that this is something that we've been basically playing fairly low key while continuing to make good progress in terms of advancing some of the things we need to do to get.

Speaker Change: To a construction decision.

Speaker Change: No.

Speaker Change: How does this fit should we get a green light. So we have three out of the four items that we required at the moment to complete what was required by the constitutional Court and we actually came very close to completing these before the end of the year.

Speaker Change: We anticipate the ongoing work with escalators, which is the community in which we have to do the prior informed consultation that will happen and probably closing some time shortly after the second.

Speaker Change: The second stage of the presidential election, and at that point, we will see what it is then we need to do so let me just differentiate something just for clarity in terms of what we're doing in terms of the additional capital and operating cost assessment, we're doing as part of the feasibility.

Speaker Change: Why are we doing this first piece of work now as we realize that we haven't had an update.

Speaker Change: Since 2020 in terms of what would be the capital cost of all of the operating costs and what does that mean in terms of the evaluation of the project historically, what we've done is we've said when we get the clearance with the environmental commissions will then go back and do the drilling for gha hydrogeology combination as well as doing the small amount of resource drilling.

Speaker Change: Been able to do that to this point.

Speaker Change: Basically came to the conclusion that we'd like to do what we can to understand the value of this project and that would be public.

Speaker Change: So the incentive this first piece of work, which should be completed in the second quarter.

Speaker Change: It's really to update the capital cost and the operating costs and from that time with analysts.

Speaker Change: 2023, then.

Speaker Change: The value of this asset can be understood theres still a further piece of work <unk> done to to be done once we get the environmental clearance will still have to go in and do the drilling which will be licensed at.

Speaker Change: At GSI cottage geology condemnation in order to confirm that all of the assumptions, particularly in the location of the metallurgical facility and the tailings facilities. All correct and then we will finalize the feasibility study, which would then be the theme taking us to a decision on construction. So two different studies going on when we talk about the work for Q2.

Speaker Change: It's really more intense surfacing and understanding the value and then there'll be a sort of a decent workout.

Speaker Change: Understood. Okay, that's great color and then.

Speaker Change: Yeah.

Speaker Change: In terms of I guess sort of the strategic options.

Speaker Change: Do you I assume you wouldn't want to build that at the same time as sugar Rachida, but maybe you could do if there is there is capacity on all fronts.

Speaker Change: Does it started right after which considered partners.

Speaker Change: Divesting it.

Speaker Change: Could you talk a bit about that.

Speaker Change: So we're looking to realize value.

Speaker Change: To the organization and that could be any or all of what you. Just discussed. So there are companies in the region that have a tremendous track record, which we could look.

Speaker Change: We look to participate in what we're doing obviously a decision to move ahead could also be a decision that it makes more sense with somebody else. So if we find more within Serbia that could be something we decide but ultimately it's all down to how is it that we develop an exciting organic growth portfolio, which makes sense.

Speaker Change: US as DPM at this point Loma logging, we believe has got lots of upside potential. It's an attractive project given this large resource upside on that resource and it's got a relatively low all in sustaining costs.

Speaker Change: I would say to your point, we would be open to different options in terms of whether we build it others build it.

Speaker Change: How we go about sort of taking that transition, but it really depends on what's happening in the rest of organic growth portfolio.

Speaker Change: Any potential M&A that we do in the meantime.

David Ray: Yeah understood a lot of factors to consider thanks, Thanks, David Thats pretty clear.

Speaker Change: One quick final one for me.

Speaker Change: It's sort of been.

Speaker Change: Poking at there is M&A question quite a bit but out of a specific one from a client than in the past for opportunities and filters for opportunities you've been pretty clear about the regions you're like in size, which is I believe around 150000 ounces or above with choke rachida already coming in and then we'll have a lot of guys is there any opportunity to look at.

Speaker Change: Potential earlier stage things or even smaller producers below that 150 Mark.

Speaker Change: Yes, we definitely open to all of the conversation so far has been around the short term.

Speaker Change: And we definitely open to longer term opportunities that may be a good fit with us as an organization as we look beyond say 2013 at this point the opportunities up to 2030, we're already stocking up are good.

List of things and by the way I didn't answer your one question, which was could we build choker located at Loma larger at the same time. The answer is yes financially that would not stress the organization, we could still do that so I would I would say that.

Speaker Change: In terms of what we're going to do going forward.

Speaker Change: We really intense on the overall health of the company and building an organization, which is generating great returns mid tier producer.

Speaker Change: Bottom quartile.

Speaker Change: The cost of generating free cash flow and returning value to shareholders and how we get there will be something that will be dynamic.

Speaker Change: With the extension of the performance of our current assets what comes about in Serbia, which is something beyond just choker with Quito as well as what opportunities transpire with Loma La there are external acquisitions.

Speaker Change: Yes, definitely a lot of opportunity on that property there in Serbia.

Speaker Change: Thank you very much for your answers and.

Speaker Change: Have a great day and good luck in 2025.

Speaker Change: Thank you.

Speaker Change: I'm showing no further questions at this time I would like to turn to Jane.

Jane: For camera as a closing remark.

Speaker Change: Well. Thank you all for joining you hope you can join that one weekend kind of scenario.

Jane: Our next question.

Jane: And that will be.

Jane: Thank you Jeanette.

Jane: Hey, Ken.

Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect.

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