Q4 2024 K92 Mining Inc Earnings Call
Speaker Change: Thank you for standing by this is the conference operator welcome to the Kate 92 mining 20 taught you for fourth quarter and annual financial results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation there will be an.
Speaker Change: The opportunity for questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call. He may signal, an operator by pressing Star then zero I would now like to turn the conference over to David Metalwork, President and C O O.
Speaker Change: Please go ahead.
David Metalwork: Thank you operator, and thanks, everyone for attending <unk> 2020 for fourth quarter results Conference call. We hope you and your families are doing well. In addition to myself we have on the line John Lewis Chief Executive Officer, and director Joseph <unk>, Chief Financial Officer, I would also like to remind everyone that after the remarks from management the call will be followed by Q&A session and we will be making forward looking statements during the call.
Speaker Change: Please refer to the cautionary notes in risk disclosure in our MD&A.
Speaker Change: Two of the webcast presentation also please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars, unless otherwise noted now I'll turn it over to John to provide you with an overview. Thank you David and welcome everyone.
John: I'll start with safety, which is always the first priority.
John: I'm pleased to report that there were no lost time injuries recorded in the fourth quarter, marking yet another major safety milestone with now six consecutive zero LTI cordage.
John: During this time to independent safety audits were completed for those audits a number of actions were identified and many actions have been taken and completed to date.
John: Safety technology insight has been enhanced including a proximity and collision avoidance system and in cab monitoring with more systems planned in the future resources for safety and training have been and continue to be expanded including additional personnel, but its also been multiple positive leading indicators.
John: As shown in the charts for several consecutive quarters. There has not been a significant increase in job safety assessments to reinforce our safety first mindset and the number of safety warnings from our in cabin monitoring system has significantly reduced our stated on previous conference calls we take the increased loss time injury.
John: Shire in 2023 very seriously while also noting that historically came onto his operating and one of the best safety Records in PNG and the broader Australasian region as shown on the previous slide I'd like to reiterate the Kate on too is lumpiness in its pursuit of our goal of achieving zero harm amongst.
John: Our workforce.
John: Okay, not too is extremely pleased and proud to have received yet another industry E. S. T Awards during the PNG investment we'd conference in Sydney in December.
John: This time per outstanding community Humanitarian initiative the award recognizes canine to sustainable livelihoods Agriculture program.
John: It's a program that has rapidly grown with approximately 180 farmers participating of which approximately 80% of women. This is in April the communities to supply fresh produce not only to canine tooth, but also to local vendors in markets, reaching as far supermarkets in port Moresby in early March of this year the first.
John: Large shipment consisting of eight tons of projects from Forbes arrived in Port Moresby, which is testament to the size scale and overall success of the program apparently in the process of working with international partners to upscale this program even further.
And then two is extremely proud of the positive impact we're having on the prosperity and development of Papua New Guinea, and we encourage you to read our latest sustainability report found at Www U K ninety-two mining dot com.
John: Moving on to operational performance during the course of the can onto Goldman delivered record quarterly production of 53000, and 401 ounces gold equivalent a total of 96614 tons were processed at a head grade of 18 grams per ton gold equivalent which was the highest head grade since Q4 2000.
John: 'twenty and well above budget benefiting from higher grades stopes in the sequencing sidelined in the 'twenty 'twenty four operational guidance increased proportion of high grade tonnage utilized for the process plant blend. In addition to a positive gold grade reconciliation versus the latest independent mineral resource estimate due to these <unk>.
John: Higher grades and a lack of lower grade to blend with this material throughput will deliberately reduced to maximize recoveries for the year a record 149515 ounces gold equivalent was produced delivering year over year production growth of 27% that's significantly exceed.
John: At the top of our production guidance range of 120 to 140000 ounces gold equivalent.
John: In addition, cash costs of $664 per ounce beat the guidance range of 820 to $80 per ounce and all in sustaining cost of 1066 also beat the guidance range of 14, 42, 15 40 gold.
John: As annotated on the chalk all in sustaining costs have been notably higher than cash costs. Since the beginning of 2023 due to K 90, twos ongoing considerable investment in our stage three expansion with costs expected to decline significantly after delivering the expansion, which will be discussed later in the presentation.
John: <unk>.
John: Now in terms of the key operational quarterly physicals total material mined was the second highest on record with plant throughput has noted earlier significantly reduced to maximize recoveries due to the high head grades.
John: This provided us with the opportunity in the underground mine to prioritize waste development for stage III expansion, resulting in a record of 209000 tons of waste mined.
John: Development delivered notable increase of 17% from Q3, including a monthly record set of 904 meters in the quarter.
The development rates in Q4 are particularly encouraging as it was largely ahead of the various key enablers that are required to be integrated now. These include the power upgrade which was completed in Q4, and certainly was a factor for the improved quarter over quarter advance rates, especially late in the quarter.
John: The interim primary ventilation upgrade which was actually only completed in January. This has resulted in a 50% increase in airflow, which is notably higher than the 30% increase expected confirming that the model the airflow resistance factors for the expansion we're conservative.
John: The second stage of the interim water upgrade which was completed at the end of January providing clean water services to the main mine.
John: Number of available headings also increased significantly and will continue to increase through the year driven by opening up of additional mining fronts.
John: High speed development experts a major focus is on the enhanced maintenance program to increase equipment availability.
John: Now in 2020 for the process plant delivered very strong performance, including Daily Weekly and monthly records that were 12%, 31%, 45%, respectively higher than the 600000 tonnes per annum at 1644 tons per day the stage two a plant upgrade its been designed.
John: To achieve which was outlined in the definitive feasibility study recover.
John: Recoveries have also been very strong with the last three quarters of 2020 for recording gold recoveries, notably higher in copper recoveries moderately higher than the DFS.
John: This outperformance is driven by Trialing, a new reagent mix, which was identified as part of the DFS metallurgical test work program.
John: In addition, we benefited from those higher gold grades in the second half of the year.
John: The strong performance of the states to a plant bodes well for the stage III plant.
Which has a more optimal circuit design improved technology and instrumentation, including online analysis.
John: I think the the throughput records also highlight the potential that the stage III process plant, which was designed on the same conservative throughput parameters as the stage two a process plant is much more capable than its 1.2 million tonnes per annum design and as a result, the stage III process plant currently being built has been designed to make it.
John: Islands to make it cost effectively expandable through simple upgrades to the flotation and filter press capacity to achieve our $1 8 million tonnes per annum that we're looking for in stage four.
David Metalwork: Now ill turn over the call to our Chief Financial Officer, Justin launch eight to discuss our financial results for the fourth quarter.
Justin Launch: Thank you John and Hello, everyone. During the fourth quarter of 2024, we had revenue of $120 3 million an increase of 60% when comparing to 2023, we sold 48851 gold ounces at an average selling price of 2000 and $564 compared to.
Speaker Change: 33273 ounces at an average selling price of $1898 in the prior year as.
Speaker Change: As at December 31, 2024, there was 4961 gold ounces in inventory, including both concentrate and dory and increase of 3074 gold ounces when compared to September 30th during the year ended December 31, 2024, we had record.
Speaker Change: Annual revenue of $350 6, Million% to 75% increase from prior year, we sold a record 141159 gold ounces at an average selling price of 2000 and $356 compared to 97355 ounces at.
Speaker Change: And average selling price of $1869 in the prior year.
Speaker Change: During the fourth quarter of 2024 hour cost of sales was $32 6 million compared to $35 9 million in the prior year or $23 8 million compared to $24 9 million for noncash items.
Speaker Change: Lower cost of sales was partially due to a buildup of our ore stockpile inventory and concentrate in dore inventory that was expense subsequent to year end.
Speaker Change: During the year ended December 31, 2020 for cost of sales was $142 2 million compared to $111 4 million in the prior year or $106 8 million compared to $77 7 million, excluding noncash items cost of sales is higher primarily due to lower <unk>.
Speaker Change: Costs capitalized as development costs, higher depreciation and depletion costs as well as higher royalties due to increased sales when compared to 2023.
Speaker Change: Q4, 'twenty 'twenty four cash flow from operating activities before changes in working capital was $72 million compared to $38 6 million in the prior year, a new quarterly record for the year. We also saw a record cash flow from operating activities before changes in working capital of 170 <unk>.
Speaker Change: 4 million compared to $82 1 million in 2023 as of December 31, 2024, we had $141 3 million in cash cash equivalents and term deposits plus $20 million in restricted cash, which subsequent to year end became unrestricted while still spending 102.
Speaker Change: $2 million and expansion capital.
Speaker Change: At December 31, 2024 can any two had a working capital balance of $117 million and our loan outstanding balance of $60 million.
John: As John mentioned during the fourth quarter. They can name two gold operations produced 51300, and setting one ounces of gold 958312 pounds of copper and 41992 ounces of silver or 53401 gold ounces equivalent.
John: We sold 48851 ounces of gold 954657 pounds of copper and 42088 ounces of silver.
John: During the year they can anti gold operations produced 139123 ounces of gold 4 million 926738 pounds of copper and 142009 ounces of silver or 149515 ounces of gold.
John: Equivalent we sold 141159 ounces of gold 5 million 51087 pounds of copper and 145428 ounces of silver.
John: In Q4, 'twenty 'twenty four we incurred a cash cost of $483 and an all in sustaining costs of $837 per ounce of gold, which was significantly below our selling price of 2000 and $564 per ounce for.
John: For the year, we incurred a cash cost of $664 in an all in sustaining costs of $1066 per ounce of gold, which was also significantly below our selling price of 2000 and $356 per ounce. Our 'twenty 'twenty four cash cost per ounce of gold increased from $585 in there.
Prior year to $664 the increase can be attributed to expenditures incurred during the temporary suspension in the first half of 2024 lower amounts of costs capitalized development and lower amounts of byproduct credits when compared to prior year.
John: It is important to note that we will see downward pressure on costs via economies of scale as operations ramp up in the stage three expansion is complete.
John: I will now turn the call back to John to continue with the rest of the presentation.
John: Thank you Justin.
Oh for the exploration and growth section.
We will begin with an update on the stage three and four expansions.
John: Which plan to fundamentally transform canine two into a tier one mid tier producer through sequentially, increasing production to over 300000 ounces gold equivalent per annum with the commissioning of the stage three expansion targeting the second half of second quarter of 2025, and then to over 400000 ounces.
John: Gold equivalent with stage four targeting second half of 2027.
John: As at the end of February 75% of stage, three and four growth capital has either been spent or committed with a significant portion of the project on a fixed price lump sum basis importantly, the project is fully funded on our financial position is strong.
John: It came down to is a strong cash balance ending 2024 with $141 million in cash plus $20 million of restricted cash and the restricted cash subsequently to the quarter end became unrestricted in January and will report to our cash balance in our Q1 financials.
John: We also have access to significant amounts of liquidity through an undrawn credit facility with $60 million available to draw down on demand and an additional 30 million of liquidity available through an accordion feature the record gold price environment has resulted in strong free cash flow generation of Justin noted our net cash balance grew.
John: Gently during the second half of 2024, even after considerable capital expenditure during the period.
John: And lastly, our commodity price downside is protected through the cost effective purchase of put option contracts in late September we purchased for $2 2 million option contracts for the next nine months, covering 12, and a half thousand ounces of gold per month, 2000, and $400 per ounce to protect against.
John: <unk> downside price risk to be clear, it's not a hedge.
John: We sell at spot if it is higher which should obviously has been this is an insurance and we retain full exposure to the upside in commodity prices in summary, our financial position and outlook is obviously very strong.
John: In January we announced a 2025 operational guidance outlining yet another year of production growth.
John: Forecasting 160 to 185000 ounces gold equivalent production, while making significant investment in terms of both sustaining capital and growth capital as we transform <unk> into a tier one mid tier producer.
John: <unk> is expected to be backend loaded again, driven this time by higher throughput as a new stage three expansion process plant commissioned and then schedule to be handed over to operations in Q4.
John: In the second half of the year also benefits from stockpiling planned in Q2 ahead of the stage III expansion closest plant coming online.
Moving on to progress for the stage three expansion construction and starting with the underground the twin incline is complete the first ore passes being developed and expect it to be fully operational mid year Houma inclined breakthrough is also planned for around mid year.
John: Upon the breakthrough of Puma, we expect an additional 50 cubic meters per second airflow with a further 50 cubic meters per second airflow forecast upon development of the next ventilation rates, representing a 50% to 60% increase in inflows from towers left.
John: Note that we are drilling the pilot for the ventilation raised right Matt.
John: Due to the previously conservatively modeled mine resistant factor, which we mentioned previously we now expect to not need that new primary event fence to meet our initial stage three bench requirements for these funds are needed for latest stage three stage four and so our plans are to opera.
Municipally install these in 2026 to minimize disruptions to production, which obviously will have been installing them.
John: On the paste fill commissioning is targeted to commence in Q4 after the process plant and has been handed over to operations.
John: And while the infrastructure was being transformed so is our mining on a number of fronts with significant increases underway due to the ramp up.
John: So we now move on to the drone footage.
John: Just a few days ago.
John: With a construction site for the $1 2 million ton per annum stage III expansion process plant.
John: Being at the dry end of the plant.
John: In the foreground the ROM pad continues to be constructed with waste rock as it becomes available for underground work on the primary jaw crusher was well advanced thus far the conveyor cable tray in the transformer have also been installed.
John: So search finished approximately 95% complete.
John: On the grinding circuit preparation works are well underway for the installation of the ball and Sag Mills.
John: The cyclone towers, you can see is installed maintenance crane also installed and the installation of electricals under the M. C C and meals is underway.
John: Piping installation is also ongoing.
John: So the floatation area all works erected for structural mechanical and piping installation and are approximately 95% complete.
John: The installation of the flotation cell hoppers and pump installation is also ongoing Piper.
John: Pipe racks for water services are also being installed.
John: In terms of the thickness the concentrate thickener is nearly complete and the tailings thickener is about 85% complete.
John: Lastly, water services are ongoing all the pumps and piping are being installed the electrical installation is in progress.
John: I'm also pleased to report that hold the civil works are complete.
John: In terms of ancillary buildings and construction pleased to report the warehouse construction is now complete.
John: You can see interim power plant.
John: So the peso all long lead items have been ordered front end engineering design work is completed detailed engineering and design contracts have been awarded to GR engineering and cultural engineering and early earthworks are underway underground construction contract has been self awarded on the construction contracts for the tailings filter plan.
John: Surface storage system are planned to be awarded later this quarter early Q2.
Speaker Change: In early February we were pleased to have hosted the governor of morale province, one of our two key provinces. The honorable Luther Winging. It was his first time visiting the condenser Goldmine also his first time visiting an underground mine, we're delighted to have taken them on a tour of the underground mine process plant.
Speaker Change: As well as the stage III construction sites and also our various exploration sites via helicopter.
Speaker Change: <unk> received significant positive coverage by local media, including significant TV coverage now in terms of exploration. We're currently drilling the Cola Cola size Jud judge side of the vein systems from underground plus the Ara comp a vein system from surface. We just completed a program of drilling colas.
Sized chunk size from surface this month now.
Speaker Change: In the third of December K 92 reported a total of 95 holes at Cora cortisol Judge Judge sites. These results continue to demonstrate that this is a world class deposit significant growth upside.
Speaker Change: The results announced multiple new near mine infrastructure Dilatant zones in the twin inclined mining fronts.
Speaker Change: As outlined by the two blue dashed lines inside the lower black ellipse.
Speaker Change: In addition to extending the high grade zones are shown in the upper Black Phillips.
Speaker Change: Oh, the discovery of the new Darlington Zone near mine infrastructure, it's particularly significant as it represents the first time the latent zone has been drilled off with sufficient drill density prior debt laden zones discovered had been largely through wider spaced surface drilling.
Speaker Change: What these particular day late and so on shows is that there is significant strike length potential of these zones with K to recording over 100 meters of strike and K. One recording approximately 60 meters of strike. These Dell late in phones that were approximately 175 meters from our underground workings and upon completion of the <unk>.
Speaker Change: Food plant will be in a position to unlock this high productivity potential of these zones for the expansion.
Speaker Change: Jud results continue to extend high grade mineralization uptick and above the main mine workings are shown in the top black ellipse and.
Speaker Change: In addition to recording multiple high grade results outside of the current resource.
Speaker Change: On February the 20th we announced the latest 13 holes at out of Commvault, bringing the total number of holes drilled in the maiden drill program to 43 holes.
Speaker Change: A major highlight from the results is the confirmation of two significant high grade veins over a significant strike lengths named <unk>, one and <unk> two based.
Speaker Change: Based on drilling to date, both veins are thick recording average true thickness for a 1314 meters and 294.
Speaker Change: Two.
Speaker Change: Strike lengths of approximately 675, and 775 meters, respectively with a strong highgate drilling hit rates plus five gram per ton gold equivalent of 50% for a 142% for two and a plus 10 gram per ton gold equivalent to 28% for a 121% for <unk>.
Speaker Change: We clearly see high potential for underground mining high grade vein system at at a compound.
Speaker Change: The drilling results also extended the interpreted bulk tonnage sold approximately 150 meters to the South zone is not defined as 900 meters along strike and to a vertical depth of approximately 650 meters with an average true thickness recorded from drilling of around 48 meters demonstrating strong.
Speaker Change: Bulk mining potential the bogs zone remains open in multiple directions, and we view it as a longer dated project with the high grade the priority in the near term.
Speaker Change: It's important I think to illustrate just how rapidly out of copper is growing.
Speaker Change: Far left image is from February 2024.
Speaker Change: Latest drilling results are shown on the far right approximately one year later.
Speaker Change: When we commenced drilling and get out of comp we had one rig operating with given the significant exploration success today, we've had up to four rigs operating with plans to continue to increase upon this delivery of additional rigs. In addition to commencing exploration at many happy a parallel vein system lessen the Columbus or wait later this year.
Speaker Change: Importantly, only approximately 50% of the known mineralization strike length of this corridor has been drilled tested by <unk> 92 to date and that's the known mineralized strike lengths.
Speaker Change: I think lastly, we'd like to highlight the significant pipeline of highly prospective exploration targets, which we have around that can add to mine. The color icons indicate where were currently drilling the blackout icons indicate where we plan to drill in the next 24 months on delivery of the stage III expansion, we expect.
Speaker Change: Not only a major inflection in our production and free cash flow, but also a significant ramp up in our exploration budget aiming to target. Many of these highly prospective targets concurrently.
Speaker Change: And with that operator wed like to commence the Q&A session. Thank you.
Speaker Change: Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear Retuned acknowledging you will request if you're using a speakerphone. Please pick up your handset before pressing any keys.
Speaker Change: To withdraw your question. Please press Star then two.
Alex: The first question comes from Alex <unk> with <unk> financial Please go ahead.
Speaker Change: Yeah, Hi, guys first of all I just wanted to say congrats on finishing the year very strong legacy of those numbers.
Alex: First question here outlook for 2025.
Speaker Change: Two months, Tim I'm, just curious you have any insights as to how things are tracking so far and maybe more in particular, you know any thoughts or comments, you can share on grade and tonnage expectations.
Alex: Asking just considering how strong the second half of the year was where you are.
Speaker Change: Your grades were up quite a bit and throughput was dialed back.
Alex: Specially for the first half of this year. If you have any insights you can share that would be great.
Alex: Okay. Thanks, Thanks, Alex.
Alex: In terms of the outlook for 2025, obviously, we've we've given our guidance somewhere.
Alex: That's our numbers at this point in time.
Alex: It is it is a relatively wide guidance because we are we see commissioning.
Alex: Our room or stage III and as a as we've said in the presentation. The expectation is certainly the.
Alex: Unlike previous years, where.
Alex: The backend loading has been grade driven.
Alex: In this instance, we believe that the backend will be more coming stripping as we as.
Alex: As we bring stage III plant into full production in the fourth quarter.
Alex: I think in the context of the first.
Alex: First quarter.
Alex: What we have said is that.
Alex: We.
Alex: We have seen a continuation of the higher grade.
Alex: We saw in.
Alex: In the fourth quarter.
Alex: And.
Alex: So there is.
Alex: Certainly an expectation that the fourth quarter.
Alex: <unk>, probably be the highest grade for the year.
Alex: With some of that higher grade of the C coming through during during the quarter.
Alex: So certainly we would expect I mean, basically the all quarters are going to be.
Alex: Pushing up from where they have been in the past.
Alex: And certainly the first quarter.
Alex: We'll we'll see a similar.
Alex: Similar sort of thing, where we do expect it to be strong in comparison to previous first quarters.
Alex: Okay.
Speaker Change: Good thanks, Thanks for that.
Alex: Second question you noted on the.
Alex: Call earlier.
Alex: The building of a stockpiled ahead of the mill.
Alex: Later in Q2.
Alex: Any color you can give on the.
Alex: Size of that inventory that you want to build and.
Alex: And how you are tracking.
Alex: On that on that target and then I guess kind of a related question.
Alex: Any I know you've got to separate mills, the current one and the new ones that you're building, but should we expect any sort of downtime as you make that transition or are you going to try to kind of keep things continuously operating.
Alex: Okay. So first of all in terms of stockpile.
Alex: The.
The intent is to focus on opening up underground or not necessarily.
Alex: Too much to surface because we do we do get oxidation if material sits too long on the surface bouquet for a couple of months.
Alex: But longer than that you can see.
Alex: Oxidation, which is variable depending on where it comes from them.
Alex: Much sulfides, you've got and what have you.
Alex: The pipeline there.
Alex: The expectation in terms of.
Alex: Stockpile by the end of the second quarter.
Alex: We're certainly looking for somewhere between I think tenants about 20000 on the ground.
Alex:
Alex: And sorry, what was the second part of that question I was just curious how you guys are tracking so far but like you said if you are focusing on building up the opening of the stopes underground and maybe Oh, sorry, Yeah. The second one was the was the plants. Okay. Kelly intent is to continue running the.
Alex: The old plants through and to some point.
Alex: In the fourth quarter.
Alex: So that the the existing plant continues to run normally certainly during the third quarter, while were going through the commissioning process for that.
Alex: The new plant and at some point during the fourth quarter, we will switch off.
Alex: The old plant and we will be running only the new plant.
Alex: Now in order to be able to do that we have recruited additional people.
Alex: That includes I think we took almost the entire graduates from the University of Lai.
Alex: It came out.
Alex: End of last year beginning of this year.
Alex: All the metallurgical graduates.
Alex: Go to a year with us we take some every year, but we basically.
Speaker Change: Uh huh.
Speaker Change: Yeah, we've taken more than the entire rest of the industry in basically every single graduate I think.
Speaker Change: Qualified this AR at the end of last year.
Speaker Change: Has it got a job with the vast majority of them are with us. So we have built up the numbers. So.
Speaker Change: We can do that.
Speaker Change: And then also that they can be involved in that.
Speaker Change: Setup optimization or the new plans going forward.
Speaker Change: Okay. That's it for me thank you.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: This concludes the question and answer session I would like to turn the conference back over to John Lewis for any closing remarks.
John Lewis: Thanks drew.
Speaker Change: Well I mean, obviously.
Speaker Change: We have been exceedingly pleased with the second half of the year.
Speaker Change: <unk>.
Speaker Change: The numbers are.
Speaker Change: Yes.
Speaker Change: I think reflected.
Speaker Change: Unconfirmed R R.
Speaker Change: Our confidence in the ability of the mine to deliver even though we had a hiccup with the first during the first half of the year.
Speaker Change: To be clear so the.
Speaker Change: The better than our guidance performance was driven by.
Speaker Change: Primarily.
Speaker Change: Higher grades coming out.
Speaker Change: Primarily jud.
Speaker Change: About 20% more grain I think Adam those stopes than we anticipated so.
Speaker Change: Probably close to 10000 ounces that came out in.
Speaker Change: Q4 came from the higher than anticipated grades and for clarity, we don't expect that suddenly.
Speaker Change: And we'll start producing 20% more gold mineral resource estimate says it will.
Speaker Change: What's the specific area within.
Speaker Change: Within Jud.
Speaker Change: Certainly something we'll look at when we do the next update the mineral resource estimate which hasn't core next year.
Speaker Change: Hum.
Speaker Change: So importantly was the significant increase we saw in recoveries, where we kicked up to 90, 596% and in fact beyond there.
Speaker Change: Consensus and while that was.
Speaker Change: Certainly partly driven by grade.
Speaker Change: This also is as mentioned the new suite.
Speaker Change: And so that probably added 2000 ounces to the second half of the year, which is substantial when you consider that.
Speaker Change: There's no cost associated with it are simply getting more out of what you've mined.
Speaker Change: That bodes really well for the new plant when you consider the new plant.
Speaker Change: <unk> is obviously it's.
Speaker Change: It's got far more technology, there's more process control and of course Cisco.
Speaker Change: Online analysis, so that youre getting results enable too.
Speaker Change: More effectively control the plant itself.
So.
Speaker Change: Certainly it bodes well for the future.
Speaker Change: Two.
Speaker Change: Certainly anticipate at this point in time, we'll see better recovery suddenly for lives in.
Speaker Change: In the study, which I think are running at about $92 nine for gold, we certainly expect to see better than that from from the plan going forward.
Speaker Change: Which should see an improvement in the in the numbers that come out of the stage.
Speaker Change: Stage three.
Speaker Change: Stage four expansion.
Speaker Change: We've set ourselves up well for.
Speaker Change: For what is our most transformative year to date.
Speaker Change: Where we bring in.
Speaker Change: Stage III expansion.
Speaker Change: With the start of commissioning.
Speaker Change: Around around midyear.
Speaker Change:
The extremely strong position in terms of our.
Speaker Change: Finances, and that is a position, which quite frankly with the gold price where it sat in there alright, increasing production is only improving as we go forward.
Speaker Change: So this is this is a really exciting year of zinc.
Speaker Change: For Cana.
Speaker Change: <unk> a pique.
Speaker Change: We're very excited at the.
Speaker Change: But the opportunity say exploration people with all the work that they've got ahead of them on the potential to.
Speaker Change: Increase expenditure year on year over the next few years.
Speaker Change: We put a lot of work into.
Speaker Change: Increasing our resources outside of chat and Cora.
Speaker Change: So.
Speaker Change: Exciting year.
Speaker Change: Look forward to having another coal in about three months time, where hopefully we can give a gift equally.
Speaker Change: Precip impressive numbers for the first quarter.
Speaker Change: Thank you everyone for your AR.
Speaker Change: For your time today and.
Speaker Change: Yeah, let's see the gold price score $3000 and be good for all of US thanks very much.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: Okay.
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