Q4 2024 IAMGOLD Corp Earnings Call
Conference Operator: Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD fourth quarter and year-end 2024 Operating and Financial Results conference call and webcast.
Conference Operator: With respect to the technical information to be discussed please refer to the information in the presentation under the heading qualified person and technical information.
Conference Operator: The slides referenced on this call can be viewed on our website.
Conference Operator: I will now turn the call over to our president and CEO Bruno items.
Bruno Items: Thank you Graham and good morning, everyone and thank you for joining us.
Conference Operator: Last year was a monumental year for Aimco.
Conference Operator: As a company achieved critical milestones that have positioned the company as a dynamic modern multi asset mid tier gold producer with significant potential for free cash flow growth and expansion.
Conference Operator: I am golf finished 1024 with total attributable gold production of 667000 gold ounces.
Conference Operator: 43% increase from the prior year and in line with our previously raised guidance estimates.
Conference Operator: This performance was driven by the successful startup corrigo as.
Conference Operator: I was aware of his exceptional operational.
Mr Kam: But for Mr Kam and Westwood.
Conference Operator: Financially the company took a significant step.
Conference Operator: To improve its financial position and capitalize on the strong operating results and a robust gold market.
Conference Operator: The lights and the year include a completion of their repurchase agreement to returning to the 70% interest level that got it go the successful delivery and completion of the legacy golf prepayment and ranching.
Conference Operator: All while still generating a total adjusted EBITDA for the year of approximately 781.
Conference Operator: And further strengthening our balance sheet and financial flexibility with the bolster credit facility, resulting in us ending the year with total liquidity of approximately 767 million.
Conference Operator: The expectation of increasing free cash flow this year.
Conference Operator: Additionally.
Conference Operator: Last night, alongside our financial results, we disclose our updated mineral resources and reserve estimates the highlights all of which were a significant increase analysis on grades at our Nelligan project located in the ship will get more region.
Conference Operator: With the update Nelligan is now among the top largest gold deposits in Canada and is expected to continue to grow.
Conference Operator: All while being located in the top.
Conference Operator: At the top share mining jurisdictions.
Conference Operator: Another highlight of the marrow resources update was that a second word it teams were able to increase mineral reserves after accounting for deflation, suggesting another potential veer off mine life for the strong cash flowing asset.
Conference Operator: Over the last few years, our Angola has seen a rapid growth at value production and mineral resources within Canada.
We're now today, approximately 80% of our measured and indicated ounces and 90% of our global inferred ounces are located in Canada.
Conference Operator: And well established mining jurisdiction.
Conference Operator: In the near term our goal is clear.
Conference Operator: Ramp up cost to go to a steady sustainable state operating at the nameplate throughput level was 36000 tons per day.
Conference Operator: The fourth quarter over this year, while maximizing our mineral measure and indicated resources that Cody and das lending support technical report in 2026 that was odd.
Conference Operator: Outline a unified mine plan based on quality and gossip.
Conference Operator: Meanwhile, we will come to me safe mining activities at the site.
Conference Operator: And Westwood to maximize production, while managing our cost drivers with a focus on cash flow margin preservation.
Conference Operator: Should the current gold price environment remain in place by the Middle of this year. We anticipate we will have our Gulf prepayment facility behind us with Coty, secondly, in Westwood capable of generating record cash flow and.
Conference Operator: And conceptually well positioning I am go to begin the process of celebrating its balance sheet, starting with our high cost debt vehicles to further refine our capital structure and moving closer to our goal of becoming a leading modern Canadian gold producer with a strong balance sheet and I said that are poised to general.
Conference Operator: A significant value for our stakeholders partner and Investor.
Conference Operator: Looking at the highlights from the year end of fourth quarter.
Conference Operator: Our triangle, we strive to be among the leaders in health and safety talent development, and SSG, ESG, including tailings management water stewardship and community wellbeing.
Conference Operator: Looking at last year has a hall, our total recordable injury frequency rate was zero point in 63.
Conference Operator: An improvement from the prior year.
Conference Operator: Ensuring all of our employees and contractors go home safely would always be the primary focus for aimco and to succeed every gold ounce produced has to be done safely.
Conference Operator: On production in the fourth quarter the company produced 177000 ounces.
Conference Operator: Bringing total annual production to 667000 ounces on an attributable basis.
Conference Operator: In line with our guidance, which was raised maybe year to 625000 to 715000 ounces.
Conference Operator: Total unwell productions in 2024 was 43% higher than 23, driven by our strong first half I guess Academy, a near record year at Westwood and the startup of Corrigo, which produced 124000 ounces to our account in the first nine months of.
Conference Operator: Operation.
Conference Operator: Cash cost per ounce sold excluding <unk> was 1176 for the year at the low end of our guidance range of 1175 to 1001 or 275.
Conference Operator: And $1393 per ounce for the first quarter.
Conference Operator: All in sustaining cost per car for Aaron's Salt excluding co day was 1725 for the year trending towards the lower end of our guidance range of 700 to 825.
Conference Operator: In $2071 for the fourth quarter.
Conference Operator: Cash cost and ASIC increase quarter over quarter through 2024. This was primarily associated to rising waste stripping.
Conference Operator: And lower relative grades I guess accounting as the mine open up and started mining our new face Aspirator mine plan.
Conference Operator: On the annual basis, while costs are in line with the prior year there remain relatively high due to continued pressure on supply chains within Burkina Faso.
Conference Operator: As well as sustained elevated price on certain consumables and labor.
Conference Operator: With that I will pass the call over to our CFO to walk us through our financial results and position Martin.
Martin: Thank you Renaud and good morning, everyone.
Martin: In terms of our financial position at the end of the year on gold at $347 5 million in cash and cash equivalents at.
Martin: Net debt of $859 3 million.
Martin: The company has 220 million drawn on the credit facility.
Martin: Proximately $418 5 million remains available, resulting in liquidity at December 2024 of approximately 767.
Martin: We know that with some cash and cash equivalents $46 million Lasalle, but the Cotai cold you JV.
Martin: $130 2 million bus out by <unk> and Aten 60 million was held in the corporate Treasury.
Martin: As we highlighted last quarter, but worth reiterating is a candidate a dividend during the second quarter of 192.
Martin: We wish to minority interest portion and withholding taxes repay during the second quarter and the company received a total dividend of a 151.
Martin: On November 32000 tuning for the company issued assignment of 300 and savings seven 7 million to complete the repurchase of the nine months and interest of the car tickled My set of restaurants, which is simi chubb through the critical joint venture lending and funding agreement.
Martin: Returning top golf, which full 70% interest in Cotai.
Martin: The repurchase payment was funded through available cash balances and amounts available under the creative <unk>.
Martin: On December 23, 224, the company announced that it does sale of Italian descent interest and the <unk> Gold project.
Martin: Associated exploration assets in Guinea for gross proceeds of $35 5 million.
Martin: The definitive agreement to solve idiocracy, a buyer gold project in Mali expired on December 31, 2024, and was not extended the company's pursuing alternative options for the sale of this asset.
Martin: Finally as of today. The company has completed over half of its called <unk> obligations, having delivered 75000 ounces into the 2022 golf be better instruments of which 37500 ounces were delivered in the fourth quarter.
Martin: On a further drop in ASP thousand ounces during January 2025.
Martin: Reducing the outstanding balance of Oki pay arrangements to 62500 ounces as of January 31, 2025.
Martin: The company received $10 million in cash in the fourth quarter at $38 9 million for the year our spot after delivery of the application.
Martin: Please refer to the liquidity outlook section of the MD&A for further details.
Martin: Looking at our annual financial results for 2024.
Martin: We saw the impact of strong gold production at record Readouts gold prices, resulting in the company, realizing higher margins and generating higher operating cash flows, giving critical year for the company.
Martin: Revenues from operations starts with $1 6 billion for the year from sales of 699000 ounces at a record average gold price of $232330 per ounce after accounting for the impact of the golf three types.
Martin: The strong operating results in gold price resulted in another year of increased adjusted EBITDA, we start with 786 million in 2024.
Martin: <unk> III volume, while <unk> still in the early stages with wrap up.
Martin: Net earnings were $819 6 million for the year and includes a reversal of Brian <unk> with suite, a $455 5 billion.
Martin: As a result of the improvement of the value of separation compounded by an update to the long term gold price assumptions.
Martin: Adjusted earnings of 296 model.
Martin: On a per share basis adjusted earnings per share for the year totaled 55 States a notable increase from the prior year of nine states.
Martin: Looking at the cash flow reconciliation for the year offers a good visualization of the major drivers.
Martin: Our available liquidity to the end of 2024.
Martin: Operating activities fueled by strong operations that is a gan based suite and the startups to production outside were adjusted for the impact of the golf P by deferred revenues.
Martin: Ebay proceeds in the first half of the year.
Martin: Investing activities in 2024 were primarily driven by the completion of construction of Cotai and sustaining capital spending at our projects.
Martin: Financing activities were bolstered by the share issuance by 2024 at a price of $4 17 since U S per share combined with the drawdown on the created facility to fund the repurchase of the 10% interest in Cotai from Sumitomo and working capital requirements.
Martin: As we look to 2025, we believe we have a good opportunity to further improve the strength of our balance sheet cheap the golf market remained strong.
Martin: As we saw on the prior page.
Martin: <unk> currently has a 400 million.
Martin: Carriage delivered relatively high interest.
Martin: This year offers an important milestone as a gentlemen can be revived in 'twenty modem tranches at any time.
After may 2025 at 104% prepayment premium.
Martin: 101% premium if repaid after may 2026.
Martin: 100% thereafter.
Martin: Once the Godfrey peso behind us the strong expected cash flows could well position the company to reduce our debt carrying cost at staples.
Martin: And with that I will pass the call back to you. Thank you.
Speaker Change: Thank you Martin and congratulations again on your team's achievement last year.
Starting with golf golf I want to congratulate the team for their commitment and dedication to the safe ramp up of protocol.
Speaker Change: Also and since first goal the mine has shown a systematic increase quarter over quarter and throughput and gold production.
Speaker Change: In the first year of operation quota gold produced 199000 ounces on a 100% basis looking at the four quarter Coty produced 96000 ounces on a 100% basis.
Speaker Change: It was a 41% increase from the prior quarter.
Speaker Change: A year ago on this call we call we called for an initial gold production in late first quarter commercial.
Speaker Change: Production achieved in the third quarter 2024, and set the target for <unk> to exit the year at a throughput rate of approximately 90% of nameplate.
Speaker Change: We were able to achieve the first two are dismissed.
Speaker Change: With the mine achieving amongst the quickest ramps up ramps up to commercial production for a large scale open pit gold mine in Canada.
Speaker Change: Despite these successes Cody was unable to sustainably exit the year at 90%.
Speaker Change: And they're really mass production guidance of 220 to 220000 ounces due to lower tonnes processed during the fourth quarter as a result of fire than expected downtime in order to conduct unplanned repair.
Speaker Change: Mining activities totaled $10 8 million tons in the fourth quarter 2020 for modestly higher than the prior quarter and bringing the total tonnes mined for the year to $39 3 million.
Speaker Change: With an average strip ratio of 261, resulting in lower tonnes mined for the year and <unk> 8 million times.
Speaker Change: The average grade of mine core was zero point 97 grams, a tonne with the rig consultations between the grade controlled and reserve models in line with expected tolerances.
Speaker Change: Within the pit. The mine currently has two cats 60, 60 electric shovel in 'twenty, one cat 793 autonomous haul truck now Commission.
Speaker Change: Utilization rates are the primary mining equipment has been improving with the mine achieving the weekly average high operating rate of 150000 tonnes per day in December.
Speaker Change: The current mine plan is using multiple stockpile segregated by Greg.
Speaker Change: As may dividends by the head grade of tonnes processed in the fourth quarter of $1 34 grams a tonne.
Speaker Change: Actually higher than the mine grid.
Speaker Change: As we discussed last quarter. This strategy is proving to require higher than expected and the amounts are free handling which are flowing through our mining cost last year mining cost averaged $3 90 per ton.
Speaker Change: This is higher than expectation due to their re handling in addition to higher contractor costs to support the ramp up in mind.
Speaker Change: We expect to see unit mining costs decline as we operate with the full haulage fleet for 2025, coupled with the implementation of an optimized bald mine plan and a reduced need for external support.
Speaker Change: Mill throughput in the fourth quarter totaled $2 4 million tons. This is a 50% increase from Q3 as the plants continue to see improvement quarter over quarter as.
Speaker Change: As demand trends as the mine transitions from commissioning to production.
Speaker Change: At the end of Q1 of last year. Our teams took the FERC. This strategy are first testing the capacity of the main equipment into plan to handle the diesel break laws, followed by building availability and stability has the ramp progress.
Speaker Change: From early arm the primary components of the processing circuit primary secondary crushing Expedia, our conveyors ball mill leaching et cetera.
Speaker Change: They're cut back our capability to operate at or above design globe when provided with stable condition.
Speaker Change: <unk>, we saw the recoveries of the plan come in line with expectation of raging, 92% for the first year of operation.
Speaker Change: Critical achievement for any remarks.
Speaker Change: <unk> continues to ramp up through the year, we were able to deploy key optimizations to stabilize the crushing circuit towards a replacement or wear parts with higher abrasive resistant material to reduce the level of work and using new type and sizes, our screens and of course, our screening area.
Speaker Change: These improvements will allow for further improvement in availability and performance of the secondary crusher, the crusher and screening circuit allow.
Speaker Change: Allowing for the plan to achieve multi day performance about 40000 tonnes per day in the fourth quarter.
Speaker Change: As the operating rate of the plant increases over longer periods of time, we require arms schedule, yet not entirely unexpected equipment maintenance for.
Speaker Change: For example in December the plan was operated at an average of <unk>.
Speaker Change: 87% of design throw quite level over two weeks period prior to a non scheduled shutdown to split the conveyor belt associated with design issue.
Speaker Change: <unk> were made to the valve replacement with a modified design was completed in January 2025.
Speaker Change: Subsequent to the quarter and the H B G. H B G. R rollers demonstrated accelerated where Mrs savings, Mississippi things a.
Speaker Change: Changeover ahead of schedule and limiting the crushing secondary crushing capacity in January the changeover of the HP <unk> well was completed in February of 'twenty, five we had operating and maintenance procedures adjusted to maximize lifespan and optimize future changeover windows.
Speaker Change: Inside the plan the grinding circuit was also impacted in the early.
Speaker Change: Early in the quarter due to repair required to one of the Verde mill following our focused startup policymakers prevention and mitigation procedures have been put in place in the second Burger mill is expected to be online later.
Speaker Change: Taken together at a higher level. It is not unusual or uncommon to encounter these types of equipment issues. During the first three are fit ramp.
Speaker Change: The large scale mining operations.
Speaker Change: Men, who is operating in an efficient level of firing rates and stress all while maintenance schedules are being adjusted to real world conditions.
What is important is that.
Speaker Change: We are seeing continuous improvement at coty, with increasing stability availability and operating milestones quarter over quarter.
Speaker Change: In 2025, we are forecasting production of 360000 to 400000 ounces of gold on 100% basis.
Speaker Change: Which means that all would essentially double it sounds as this year.
Speaker Change: Cash costs are expected to be between 909 52 $1100 per ounce.
Speaker Change: And all in sustaining cost to be between 1350 to 1500.
Speaker Change: The cash cost guidance to reflect the cost experience in the first year of operations, including higher levels of maintenance contract to support and continued its improvement consulting.
Speaker Change: Costs are expected to lower in the second half of the year is targeted at the improvements are deployed and as production increases.
Speaker Change: The operating guidance assume plant throughput of approximately 12 million tons in 2025.
Speaker Change: Equating to an average of 3 million tons per year per quarter.
Speaker Change: <unk> well with the Q4 throughput of two 4 million tons, which was 50% above Q3. So yes. We are confident in the next step and the next step up after the first quarter, which we have advice will be lower after which we will step off into Q4.
Speaker Change: The Ami golf recorded this year is to achieve nameplate throughput of 36000 per day.
Speaker Change: Turning to fourthquarter this target will be aided by the installation of a second cone crusher, which will provide additional capacity and redundancy to the primary crushing circuit removing the bottleneck from this area.
Speaker Change: Longer term, we will continue to pursue improvement in mining and processing activities.
Speaker Change: Looking for a low capital intensive opportunity to increase processing capacity.
As we have noted in the past several components of the plan has been designed for 42000 tonnes per day.
Speaker Change: We have seen multiple days about 40000 tonnes per day early on in the lifecycle of the project.
Speaker Change: The addition of the second Crusher later this year is aligned with our strategy or from locking maximum value by monetizing the maximum number of tonnes of ore mined as they become available for process.
Speaker Change: This strategy includes evaluating the potential to adjust certain aspects of our mining plan at Colgate.
Speaker Change: This shift over time from selective blasting and separation two or more bulk mining approach has the mill throughput capacity is unlocked.
Speaker Change: As currently designed quota over the life of mine is expected to average a matter of all our mining rate of approximately 50000 tons per day.
Speaker Change: Versus our current nameplate processing rate of 36000 tons per day.
Speaker Change: So if we are able to find the right balance of increased processing rates and minimize stockpiles, we expect numerous efficiencies advantages, including reduced re handling.
Speaker Change: Improved pit sequencing and less reliance on segregation for the mine plan and more on maximizing mill throughput and monetization of mine.
Speaker Change: Optimizing the processing and mining balance at Cologuard is even more important as we investigate the potential options to bring into the mine plan to full resource base estimate of Dakota, and Gosselin zone, which combined for over.
Speaker Change: $16 2 million ounces of measured and indicated resources and $4 2 million ounces of Ginsberg resources to define coty goals amongst Canada's largest gold mine in operation.
Speaker Change: Our exploration program on Coty, and Golfman are ramping up this year targeting resource conversion of goslin in support of our technical report in 2026 that outline and unified mine can base on Coty in golf.
Speaker Change: Turning to Quebec.
Speaker Change: The transformation of Westwood of Westwood has been among the best mining success story in 2024 at the last few years of redevelopment and rehabilitation resulted in the successful turnaround at the mine building safe and stable production and culminating in a generation.
Speaker Change: $94 4 million in mine site free cash flow for the year.
Speaker Change: Looking at operations.
Speaker Change: Westwood produced 134000 ounces in 2024 above the top end up as increase revised production target of $1 15 to 130000 ounces.
Speaker Change: Dr trend into the fourth quarter of 2024 was 35000 ounces higher by seven thousands of 25% compared with the same prior year period.
Speaker Change: Primarily due to higher grades and an increased proportion of ore feed from the underground mine.
Speaker Change: Mining activity for the year total 102 million tons of ore in line with the prior year.
Speaker Change: And the FERC water the underground mine average 98000 tons or just over 1000 tonnes per day, a record volume from underground since the mine restart denied <unk> underground mine grade of $9 65 grams attached the.
Speaker Change: The improved volume from underground are result of the completion of the underground rehabilitation and development work program, which has provided increased operational flexibility.
What multiple stope sequences available to mine concurrently at different level and sector.
Speaker Change: Mill throughput in the fourth quarter of 2024 was 267000 tons at an average head grade of 434 grams, a ton and an average recovery of 93% with great 11% higher than the prior year period.
Speaker Change: Due to the higher proportion of underground material.
Speaker Change: Plant availability in the quarter.
Speaker Change: 88% or 10% higher than the same period.
Speaker Change: Same prior year period with the successful completion of the analog mill shutdown in November.
Speaker Change: The margins for Westwood continued to improve with a strong gold price and stabilizing cost cash cost of <unk> 1148 dollar amount and all in sustaining costs averaged 1688.
Speaker Change: In the fourth quarter positioning the mine and the metal or for our asset cost Kurt.
Speaker Change: Looking ahead to this year Westwood production is expected to be in the range of 125000 to 140000 ounces at UNFI as mining activities continue the underground ramp up towards achieving 1000 tonnes per day at a stable steady state while targeting multiple active mining areas and my.
Speaker Change: And minimizing dilution.
Speaker Change: Open pit activity from <unk>.
Speaker Change: Currently planned to be completed by the fourth quarter of 2024 25.
Speaker Change: Dough granted stockpile material would continue to be to be mill feed into 2027. However.
Speaker Change: However, should a golf rates remain where they are.
Speaker Change: I believe there is a strong potential for further expansion and extension of the Grand Duke Pete pit, which will be investigator investigator this year.
Speaker Change: Part of this year are expected to be generally flat with cash cost guidance for Westwood 1175 to 1325, correct. So an ASIC or 1675 to 1825 or so.
Speaker Change: Capital expenditure guidance is for approximately $70 million.
Speaker Change: Mainly consisting of underground development and rehabilitation and supported it with us.
Speaker Change: All right.
Speaker Change: Counting it renewable of the mall and mobile fleet and equipment overhauls and certain asset integrity project at the Westwood Mill.
Speaker Change: Finally, looking at asset County.
Speaker Change: It was a lighter quarter.
Speaker Change: At the mine with production of 88000 ounces in Q4, yeah. Its economy is still achieved the top end markets our guidance range, which was increased midyear with the mine producing total NOL productions were 409000 ounces versus guidance of 380000 to 410000 ounces.
Speaker Change: Mining activities totaled $12 4 million tons and acquire.
Speaker Change: With $2 2 million tonnes of ore mined, resulting in the strip ratio of four seven which is relatively high versus recent history as the mine fleet targeted capital stripping activity intended to secure access to ore on deeper benches of phase seven and support at the 2025 and 2026.
Speaker Change: Mill throughput for the quarter was $2 9 million tons at an average head grade of 1.07 grams a tonne.
Speaker Change: Throughput was slightly lower than Q4 due to the scheduled maintenance during December.
Speaker Change: Average head grade decrease in the fourth quarter compared to the first half of the year in line with the mine plan as mining activity prior to right waste stripping secrets, resulting in increased supplement supplementation of their meals feed from <unk> ore stockpiles.
Speaker Change: On a cost basis.
Speaker Change: Kind of reported relatively high Q4 costs with cash costs of 1501 per ounce.
Speaker Change: <unk> 2180 per ounce. These came in relatively high due to the planned lower quarterly production and <unk> scheduled maintenance activity.
Speaker Change: Higher realized steel price and higher supply chain and transportation cost impacted by the security situation.
Speaker Change: Despite this total annual cash costs were 1179.
Speaker Change: And <unk> were 1625, both within guidance range of 1175 to $1275 per ounce and.
Speaker Change: In 1575 to 1006 $75 per ounce, which were lowered in the midyear.
Speaker Change: Looking ahead.
Speaker Change: <unk> is expected to produce 360, thousands of 400000 ounces on an attributable basis at a cash cost a fortune 100 to 15 50 per ounce and an ASIC of 16 75 to $18 $25 per ounce mining activities are expected to complete mining in phase five and the <unk>.
Speaker Change: Half of the year with the bulk of the mine material coming from phase six and phase seven.
With mining moving intuitive primary zones of phase six and seven capitalized waste stripping is expected to be relatively lower in 2025 with a total capital expenditure guidance this year of $115 million.
Speaker Change: The plant is expected to operate at throughput and head grade and the <unk> and.
Speaker Change: And head grades in line with the current life of mine plan has spurred a December $2023 43, 101 Technical report.
Speaker Change: While the cost of operations in country have risen over the last two years.
Speaker Change: <unk> is positioned to generate strong cash flow with an expected decrease in waste stripping expenditure year over year.
Speaker Change: I also want to congratulate the exploration team as we announced an updated mineral reserve and resource estimate yesterday, and which is a kind of a more than replaced is reserved deflation with current estimated reserve of $2 3 million ounces.
Speaker Change: And manage to grow measure and indicated ounces by 15% during nearly 100 million tonnes grading 124 grams, a tonne for a total of nearly 4 million ounces.
Speaker Change: Taken together these strong with strong results from the drill bit suggest the potential for further mine life extension within the secured parameter.
Speaker Change: For our operation in the second.
Speaker Change: Finally.
Speaker Change: And on the topic of notable mineral resource exchange yesterday, we also announced an updated mineral resource estimate for our 100% of Nelligan project located approximately 45 kilometers southwest of Chibougamau in Quebec.
Speaker Change: The update estimate.
Speaker Change: Maiden mineral resource of $3 1 million indicator gold ounces, and 103 million tonnes grading 0.5 grams per tonne.
Speaker Change: And $5 2 million inferred ounces.
Speaker Change: 166 million tonnes grading 0.6 grams per tonne.
Speaker Change: This represents a 56% increase and indicated resources.
Speaker Change: One 1 million ounces with.
Speaker Change: With an increasing grade of 13% as well as a 13% increase in inferred resources are one 3 million ounces, but a similar 14% increasing.
Speaker Change: This update demonstrates a remarkable product.
Speaker Change: Activity of this exit demonstrating rapid growth in ounces and an improvement in grade from a relatively conservative drill program that total along with 23400 meter over the last two years.
Speaker Change: When combining nelligan with a high grade satellite Monster Lake deposit there are nearing 9 million ounces of resources and this mining camp already positioning nelligan as it related to late early stage among the largest gold projects in Canada with significant potential for further growth.
Speaker Change: This year, we are increasing the scope of our Sheboygan module program with a plan for 30000 meter of Diamond drilling testing the extension of mineralization at Nelligan as mineralization remains open along strike and at depth.
Speaker Change: Further a drill program will be conducted targeting high grade structures.
Speaker Change: Underground at Monster Lake, which has seen minimal modern exploration in the last few years.
Speaker Change: It is definitely early stage, but there is no question there.
Speaker Change: Valued at Nelligan can offer as a growing large scale gold asset in a very mining friendly jurisdiction in Canada.
Speaker Change: So thank you all and I look forward to an exciting year ahead with that I would like to pass the call back to the operators for the Q&A portion.
Speaker Change: Greater.
Speaker Change: We will now begin the question and answer session to join the question queue. You May Press Star then.
Speaker Change: One on your telephone keypad.
Speaker Change: Well Henry tone acknowledging your request.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing any keys.
Speaker Change: To withdraw your question.
Conference Operator: Please press Star then two.
Speaker Change: We will pause for a moment as callers join the queue.
The first question comes from Anita Soni with CIBC World markets. Please go ahead.
Anita Soni: Good morning, Good morning, <unk> a question on the some of the challenges that you've had in January with D. M. D. H P. G R and can the other crushers.
Anita Soni: Did issue guidance in January can you, let us know whether or not your January guidance would encompass some of the issues you are encountering I'm just trying to understand the timing of the opening session at sangamo and whether or not we should be a little bit more conservative.
Anita Soni: And then what you had previously correct.
No I mean like when do we when we issued our guidance in outerwear.
Anita Soni: The sessions are all of the information we knew about.
Anita Soni: On the bell when you're under repair or be of a larger mill. So that was all accounted for.
Anita Soni: New that we will change it was already planning to wait to do a changeover of the raw Sunday <unk> Southern West just advanced by the state. So as a result of advisors mentioned, we see Q1 a little.
Anita Soni: Lowered than the rest, but we got to pick up an increase with.
Anita Soni: More tonnes processed in the second half.
Anita Soni: No change in that.
Anita Soni: We remain very confident about our guidance.
Speaker Change: Okay. That's good to hear I guess that the Q1 lower with the changeovers happening.
Anita Soni: Yeah, and then and then in terms of.
Speaker Change: Try the yen.
Speaker Change: Oh It was my question.
Speaker Change: Alright, the mining rate, how do you see that evolving over the course of the year.
Speaker Change: We actually there.
Speaker Change: Sure.
Speaker Change: As I mentioned in all we were roughly you know in the 40 million Mark for the 2024 is the first year a success.
Speaker Change: <unk> successfully commissioned through at the three additional we've already seen a pick up yet knowing that ton mines had a wonderful week in 2000 and December at 150000 ton.
Speaker Change: And.
Speaker Change: So to achieve 48 million tons. This year is like moving from.
Speaker Change: The previous range, it's about <unk> to about 12 million per quarter, we exited at let's see this achievable. So we will see in the Q1, because its still likely to ramp up into commissioning of the full commissioning of the extra three truck, but definitely we see.
Speaker Change: We have the capacity.
Speaker Change: And the equipment of course to.
Speaker Change: To achieve our 48 million tons this year.
Speaker Change: Okay. That's it for my questions. Thank you.
Speaker Change: Thanks.
Speaker Change: The next question comes from tenure to cross connect with Scotiabank. Please go ahead.
Speaker Change: Hi, Good morning, everybody. Thank you for taking my question Fernando is kind of a follow up coming either question.
Speaker Change: Curtailed.
Speaker Change: Just wanted to circle back.
Speaker Change: Just as you think about.
Maybe just a bit more detail as we go through the quarter.
Speaker Change: So Q1 <unk>.
Speaker Change: <unk> currently has that changed at all or is that for now.
Speaker Change: Anything else planned or is.
Speaker Change: Planned downtime.
Speaker Change: Down time in Q2 Q3 Q4.
Speaker Change: Yeah.
Speaker Change: My question all right.
Speaker Change: Or turnover.
Speaker Change: Coming on later in the year.
Speaker Change: Our bond timeframe, just trying to understand.
Speaker Change: We think long pants on crude mangum Hans.
Speaker Change: Per quarter.
Speaker Change: Uh huh.
Speaker Change: Quarter.
Speaker Change: Some of the critical aspect.
Speaker Change: Unless ramp during the year.
Lynne: Yeah, I'll ask <unk> to add a bit of color to this but obviously you know like <unk> per se that was advanced maintenance from Q2 to Q1, so no real difference, but bring on good actavis. Thank you Lynne.
Speaker Change: Good morning, Daniel.
Okay.
Speaker Change: You know what.
Speaker Change: I know just mentioned.
Speaker Change: As a replacement for <unk> or scheduled to be taken place in may it's been that Vince look now we are.
Speaker Change: Understanding the work better and better.
The other major shutdown is going to be the one in August the annual shutdown, but the word pattern that we're seeing at the ball mill.
Speaker Change: It's very likely it's going to be shorter than expected also because.
Speaker Change: We Uh huh.
Speaker Change: We're seeing a wave pattern that is lesser Brexit and unexpected so.
Speaker Change: This is where we are right now like we are understanding and learning that we're patterns at all our primary components. So the <unk> was a little bit.
Speaker Change: <unk>.
Speaker Change: Faster and the momentum seems to be holding very well right now.
Speaker Change: Other than that.
Speaker Change: Okay.
Speaker Change: So if you like to think about the quarter.
Speaker Change: So Q1 is the weakest.
Speaker Change: Your point is going to be the strongest.
Speaker Change: Do read the step progression upwards in Q3, and Q2 equal I'm, just trying to understand with that.
Speaker Change: Downtime in Houston.
Speaker Change: Yes, because in Q2, you want us to do the HB Jr. Rules replacement. So different fees Q2 is going to be honored in Q2.
Speaker Change: In Q1, and after that Q3 will also pick up in speed.
Speaker Change: Okay. So you will know.
Speaker Change: Despite all of these changes and things you will see quarter over quarter improvement in Rochester, That's correct.
Speaker Change: Probably Q2, Q3 flows or to H solar for a best friend, but definitely Q1, the lowest in Q4 of the past and I would just say like Q2, Q3, hopefully Q3, a little bit more in Q2.
Speaker Change: Well be starting installations.
Speaker Change: The second crusher and all by mid Q3.
Speaker Change: <unk>.
Speaker Change: Late Q2 early Q3, so should be mealy mouthed disruptions, but there is always some time to be done. So on that basis. You could argue that Q2 Q3 should be very similar well assume about Q4 definitely should be strong.
Speaker Change: Okay and anything else on the critical path that we need to be aware of as we go through the year and Heidi chain.
Speaker Change: Changes that you've mentioned anything else I mean mining you know we've got the team.
Speaker Change: And the three new tracks or thereabout coming in.
Speaker Change: On the mining front.
Speaker Change: Second we shouldn't be Atlanta.
Speaker Change: It's really all about the stability of Tania and I. Appreciate you kind of like during the commissioning of our April quarter, you know Unfortunately, it just happened and so forth, but has been I'll mention I think with line enormously you know this.
Speaker Change: And basically it's all about Okay of course, you have defined criteria of how many hours you should do even now and so far that we're past earnings.
You need to adjust some equipment of course may be less familiar with some operators and more training, but globally I think we've gone through the whole cycle from the crushing Tudor so they're grinding to the leaching.
Speaker Change: Great Brian I think we've gone through the whole cycle, we have a much better understanding of each of the equipment. So it's all about stability. So to answer your questions. We feel strong about the 48 million tonnes, we are already seeing.
Speaker Change: Improvement in the pit.
Speaker Change: As I've discussed we will be left.
Speaker Change: Jude and Super said radiations and allows for block performance and productivity in the pit. So we feel very strong with the mining and when it comes to that now is really all about stability at this stage.
Speaker Change: So we're really looking forward now with the last repair or email to really push the gas and crank up the tonnage and gulfport are more stability higher availability and with that you know the capacity is there. So as you are approaching 90% plus.
Speaker Change: Ability deal will be there there is not capacity issue is just essentially the comparability matters for the long answer but.
Speaker Change: I'll start out with clarifying.
Speaker Change: Okay. No. Thank you. Thank you for that and then I'm just wondering on the mine.
Speaker Change: Africa's while I have you moved from there okay.
By then.
Speaker Change: But here.
Speaker Change: How does the profile look or the ear there I'm just trying to understand overall for the company how does the year progressed.
Speaker Change: Scott you know a lot like Q1 overall for the company and get to a higher Q4, I'm just trying to get an understanding if there's any variability.
Speaker Change: Lastly, it is low.
Speaker Change: Yeah. Thanks for that question.
Speaker Change: And the opportunity to clarify a bit because absolutely. So unfortunately, you're not at the same time Q1 is a bit of that the quarter four.
Speaker Change: <unk> D and I'll get a repair to first half and so far at the same time, we're answering phase six and seven and and we have.
Speaker Change: <unk> discussed you know the.
Speaker Change: The performance on the Gregory calculation as you enter new faces at the very early stage versus where you are well established and with we've seen that in 'twenty three 'twenty four with the phase five.
Speaker Change: We still have faced five ounce up probably mid year, while we are answering phase six seven was a little bit slower.
And last <unk>.
Speaker Change: Proactive and great sides are resolved.
Speaker Change: We see expect government potentially on targeted but because of the six seven it could be that economy is slightly lower into Q1, and then pick up after that for the rest of the year, but originally we were seeing about saying, but it could be possible that.
Speaker Change: Q1 is slightly lower.
Speaker Change: And then the rest of the year.
Speaker Change: That's helpful as well so it kind of looks that you know you probably aren't seeing that quarter over quarter improvement for the company overall in 2025.
Speaker Change: Okay. That's a.
Speaker Change: Fair comment.
Speaker Change: Okay, and if I could just squeeze one more in in terms of more.
Speaker Change: More a strategic question for you.
Speaker Change: You mentioned, you know over 90% and the.
Speaker Change: <unk> parent.
Speaker Change: These are all sitting in Canada, and as we get you know Goslin mine.
Dropped van body, and then a better understanding of the mine plan.
Speaker Change: Okay complex.
Speaker Change: How do you think it means that.
Speaker Change: Keep up the can with them.
Speaker Change: I am old.
That have no cash flow coming in do you think that by selling as I can.
Speaker Change: I totally Canadian company, you'd get a better valuation.
Speaker Change: I think you're talking about something that belongs to their more like looking forward type of thing and we're very pleased.
Speaker Change: The truth is that we.
Speaker Change: We have discussed numerous signed me and all of the strategic.
Speaker Change: Our approach with <unk>.
Speaker Change: And.
Speaker Change: Sure.
Speaker Change: We're looking at delivering in our balance sheet and $25 26 to.
Speaker Change: The strong free cash flow.
Speaker Change: Well, it's all about you know all of this stability rates and we had a very strong 2024, we had no interruptions in our.
Speaker Change: Productions, and we've delivered on all metrics.
Speaker Change: To be very frankly, you could argue you know that we've seen more stability in northern Nevada.
Speaker Change: It can package with you our view on my take of it so I won't really comment on the details of our clients. What I know is that we have strong belief that this account it will be a strong free cash flow generators.
Speaker Change: Generators, and we will make a huge difference for us for 25 and 26.
Speaker Change: We.
Speaker Change: Significantly improve our balance sheet, the rest belongs to stability, how things evolve and so forth. So there is a there is a lockup stake here, while we feel very confident to deliver another strong point assignment.
Speaker Change: Okay. That's fair comment. Thank you very much for taking my question.
Speaker Change: Thanks.
There are no further questions I will now hand, the call back over to Graeme Jennings for closing remarks.
Graeme Jennings: Thank you very much operator, and thanks to everyone for joining us. This morning as always should you have any additional questions. Please reach out to nowhere and myself. Thank you all be safe and have a great day.
Conference Operator: This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
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