Q4 2024 Integra Resources Corp Earnings Call
Operator: Good morning. My name is Julianne. I will be your conference operator today. At this time, I would like to welcome everyone to the Integra Resources Q4 and full year 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Thank you. I would like to turn the meeting over to Jason Kosec, Vice President, Corporate Development and Investor Relations. Please go ahead, Mr. Kosec.
Good morning. My name is Julianne and I will be your conference operator today. At this time I would like to welcome everyone to the Integra Resource 4th quarter and full year 2024 Results Conference call.
All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to answer your question, please press star one again.
Speaker Change: Thank you. I would like to turn the meeting over to Jason Banducci, Vice President corporate development and investor relations. Please go ahead, Mr. Banducci.
Jason Kosec: Thank you, operator. I'd like to welcome everyone today to Integra's Q4 and Full Year 2024 Results Conference Call. Before we begin, I would like to note that we will be making forward-looking statements during today's call, and I would direct you to the second slide of our presentation, also accessible on Integra's website, which contains important cautionary notes regarding these forward-looking statements. All dollar amounts discussed today will refer to US dollars unless otherwise indicated. I would also like to highlight that all financial results included in the presentation today are reflective of Integra's ownership period during the Q4 for Florida Canyon, which was 8 November to 31 December 2024. Please note that we have also included full-year operating metrics for Florida Canyon for strictly informational purposes.
Speaker Change: Thank you, operator. I'd like to welcome everyone today to Integra's fourth quarter and full year 2024 results conference call.
Speaker Change: Before we begin, I would like to note that we will be making forward-looking statements during today's call, and I would direct you to the second slide of our presentation, also accessible on Integra's website.
Speaker Change: Which contains important cautionary notes regarding these forward looking stains. All dollar amounts discussed today will refer to U.S. dollars unless otherwise indicated.
Speaker Change: I would also like to highlight that all financial results included in the presentation today are reflective of Integra's ownership period during the fourth quarter for Florida Canyon, which was November 8th to December 31st, 2024.
Speaker Change: Please note that we have also included full-year operating metrics for Florida Canyon for strictly informational purposes.
Jason Kosec: On the call today, I'm joined by Integra's President, CEO, and Director, George Salamis, Chief Financial Officer, Andrée St-Germain, and General Manager of the Florida Canyon Mine, Gregory Robinson. Today, we are pleased to provide an operating and financial update on what was a transformational year in 2024 for Integra. With that, I would like to hand the call over to our President and CEO, George.
Speaker Change: On the call today, I'm joined by Integra's President, CEO and Director George Salamis.
Speaker Change: Chief Financial Officer, Andre St. Germain, and General Manager of the Florida King and mine, Greg Robinson.
George Salamis: Today, we are pleased to provide an operating and financial update on what was a transformational year in 2024 for Integra. With that, I would like to hand the call over to our President and CEO , George.
George Salamis: All right. Thanks, Jason. 2024 marked a transformational year for the company. Integra evolved from a development stage company in the US through the acquisition of the Florida Canyon Mine. We believe that the company is better positioned now more than ever with Florida Canyon producing and selling gold at record prices, better positioned to advance our two heap leach projects, Delamar and Nevada North. Our strategy is simple: operate efficiently, develop responsibly, allocate capital wisely, and grow through tactical M&A. We are building a modern growth-focused gold company in the heart of the Great Basin. Moving to slide 5, we have highlighted some metrics that underscore our success in 2024. In Q4, we closed the acquisition of Florida Canyon, catapulting the company from developer to producer status.
All right, thanks Jason.
So 2024 marked a transformational year for the company.
Integra evolves from a development stage company in the U.S.
George Salamis: Through the acquisition of the Florida Canyon mine, we believe that the company's better position now more than ever with Florida Canyon producing and selling gold at record prices. Better position to advance our two heap-leaf projects, Delamar and Nevada North. Our strategy is simple.
George Salamis: Operate efficiently, develop responsibly, allocate capital wisely, and grow through tactical M.M.A.
George Salamis: We are building a modern growth focused gold company in the heart of the Great Basin.
[inaudible]
George Salamis: Moving to slide five, we have highlighted some metrics that underscore success in 2024. In Q4, we close the acquisition of Florida Canyon, catapulting the company from developer to producer status.
George Salamis: Florida Canyon demonstrated an excellent performance in 2024 with total production of just over 72,000 ounces of gold, marking the highest production output in 21 years. During Integra's ownership period from 8 November to 31 December, Florida Canyon produced approximately 11,000 ounces of gold at all-in sustaining costs of $2,103 per ounce. Average realized gold price during that period was $2,643 per ounce. At Delamar, we have had a very productive year making significant advancements from an engineering and permitting perspective, ones that will set the stage for a pivotal year in 2025 with an upcoming feasibility study and significant permitting advancement. At our Nevada North project, we successfully executed a drill program at the Wildcat deposit that confirmed continuity of mineralization and gathered important technical data.
George Salamis: Florida Canyon demonstrated an excellent performance in 2024 with total production of just over 72,000 ounces of gold.
Marking the highest production output in 21 years.
George Salamis: During Integra's ownership period from November 8th to December 31st, Florida Canyon produced approximately 11,000 ounces of gold at an all-in sustaining cost of $2,103 per ounce.
George Salamis: Average relies gold price during that period was $2,643 per ounce.
George Salamis: At Delamar, we have had a very productive year making significant advancements from an engineering and permitting perspective, ones that will set the stage for a pivotal year in 2025 with an upcoming feasibility study and significant permitting advancement.
George Salamis: At our Nevada and North Project, we successfully executed a drill program at the Wildcat deposit that confirmed continuity of mineralization and gathered important technical data.
George Salamis: From a financial perspective, we ended the year in 2024 in the strongest position ever for this company, with a cash balance of $52 million, well-positioning us to execute on all of our major objectives in 2025 without having to return to the market for financing. I will now hand the call over to Gregory Robinson, our mine general manager at Florida Canyon, to provide an operational review from 2024. Over to you, Greg.
George Salamis: From a financial perspective, we ended the year in 2024 in the strongest decision ever for this company, with a cash balance of $52 million.
Well positioned.
George Salamis: Well positioning us to execute on all of our major objectives in 2025 without having to return to the market for financing.
Speaker Change: I will now hand the call over to Greg Robinson, our Mind General Manager at Florida Canyon to provide an operational overview from 2024 over you.
Gregory Robinson: Thanks, George Salamis. Turning to slide five, we have outlined the key production metrics for Florida Canyon from 8 November through 31 December and for the full year. During Integra's ownership in Q4, Florida Canyon produced 10,984 ounces at cash cost per ounce sold of $1,884 an ounce and all-in sustaining cost of $2,103 an ounce. Production during Q4 was particularly strong with the newly constructed CIC circuit coming online and beginning drawdown of the heap leach pad. For the full year 2024, Florida Canyon produced 72,229 ounces, marking the highest production in 21 years. Record production was supported by the construction and commissioning of this new Phase 3A of the south heap leach pad and enhancements to solution processing systems.
Thanks George.
Speaker Change: Turning to slide 5, we have outlined the key production metrics for Florida Canyon from November 8th through December 31st and for the full year.
Speaker Change: During Integra's ownership in the 4th quarter, Florida Canyon produced 10,984 ounces at cash cost per ounce sold.
of $1,884 an ounce.
and all in sustaining costs of $2,100 and $3 an ounce.
Speaker Change: Production during the fourth quarter was particularly strong with the newly constructed CIC circuit coming online and being drawn down of the heat-sleach paddles limit towards the end of the
For the first year, 2024 Florida Canyon produced 72,229 ounces.
Marking the highest production in 21 years.
Speaker Change: Record production was supported by the construction and commissioning of the new Phase 3A of the South Heap Leach Pad.
and enhancements to solution processing systems.
Gregory Robinson: 2024 sustaining capital at Florida Canyon totaled $41.3 million, with approximately $30 million towards the heap leach pad expansion at CIC and approximately $8 million in deferred stripping. 2025 sustaining capital will include the expansion of the south heap leach pad Phase 3B, which is expected to amount to approximately $12 million. We also expect sustaining capital to include expenditures for our mining equipment fleet, additional deferred stripping, and other projects. We plan to provide formal guidance in mid-year 2025. On slide 7, we show a breakdown of the mine profile of Florida Canyon from 2017 to 2024. Record production levels in 2023 and 2024 are supported by placing increased run-of-mine ore directly on the heap leach pads, in addition to maximizing the crusher throughput.
Speaker Change: 2024, a sustaining capital of Florida Canyon totaled 41.3 million, with approximately 30 million towards the heap leach pad expansion and CIC and approximately 8 million in deferred stripping.
Speaker Change: 2025 sustaining capital will include the expansion of the South Heap Leach Pad Phase 3B, which is expected to amount to approximately 12 million.
Speaker Change: We also expect sustaining capital to include expenditures for our mining equipment fleet additional deferred stripping and other projects.
We plan to provide formal guidance in mid-year 2025.
On Flight 7, we show a breakdown of the mine profile.
of Florida Canyon from 2017 to 2024.
Speaker Change: Record production levels in 2023 and 2024 are supported by placing increased strut of mine or directly on the heap leach pads.
In addition to maximizing the crusher throughput.
Gregory Robinson: Record 2024 production was supported by excellent crusher performance and delivery of more run-of-mine ore to the leach pad than planned. Other operational improvements included drawdown of heap leach pad inventory, improved short and long-range planning, operational efficiency improvements, emphasis on stability and consistency, and a renewed focus on workforce development, employee retention, and culture. I will now pass the call back to George to discuss some of the key achievements at Delamar and Nevada North during Q4.
[inaudible]
Speaker Change: Record 2024 production was supported by excellent crusher performance and delivery of more run-a-mine or to the leach pad the planet.
Speaker Change: Other operational improvements include a drawdown of heap leach pad inventory, improved short and long range planning,
Speaker Change: Operational Efficiency Improvements, Emphasis on Stability and Consistency, and a re-ed focus on Workforce Development, Employee Retention and Culture.
George Salamis: I will now pass the call back to George to discuss some of the key achievements of Delamar and Nevada North during the fourth quarter.
George Salamis: Great. Thanks, Greg. At Delamar, 2024 was a foundational year as we completed engineering for our upcoming feasibility study. As a result of extensive engineering studies, we made substantial improvements to the project, including optimizing the heap leach footprint and eliminating the need for tertiary crushing, which is expected to reduce power needs and have a positive impact overall on capital costs. Perhaps most importantly, we finalized a gold silver recovery model that leverages refining capacity at Florida Canyon, proving yet another example of the synergies we're unlocking in our portfolio with the recent acquisition. From a permitting perspective, significant progress was made on the Delamar mine plan of operations, including regulatory milestones, environmental surveys, and coordination with federal and state agencies. In 2024, we focused on refining our operational and permitting strategy, addressing agency concerns, and advancing critical environmental and engineering studies.
George Salamis: Great, thanks Greg. So at Delamar 2024 was a foundational year as we completed engineering for our upcoming feasibility study.
As a result of extensive engineering studies.
George Salamis: We made substantial improvements to the project, including optimizing the heap-leach footprint and eliminating the need for tertiary crushing, which is expected to reduce power needs and have a positive impact overall on capital costs.
George Salamis: Perhaps most importantly, we finalized a gold silver recovery model that leverages refining capacity at Florida Canyon.
George Salamis: Proving yet another example of the synergies were unlocking in our portfolio with the recent acquisition.
George Salamis: From a permitting perspective, significant progress was made on the Delamar mine plan of operations, including regulatory milestones, environmental surveys, and coordination with federal and state agencies.
George Salamis: In 2024, we focused on refining our operational and permitting strategy, addressing agency concerns and advancing critical environmental and engineering studies.
George Salamis: In light of the work completed at Delamar in 2024 and the current political and economic backdrop in the US, we believe we are better positioned now more than ever to make significant progress at Delamar in 2025. Over to Wildcat. At Wildcat, part of our Nevada North project, we completed a targeted 1,940m drill program to refine our understanding of geology, metallurgy, and geotechnical elements of the project. Results confirmed strong oxide continuity and hydrogeological data confirmed a dry pit, which we expect to simplify future operations and permitting. We’ve also secured the first tranche of sage grouse conservation credits and key disturbance permits. Nevada North continues to evolve into a de-risked growth asset in a premier jurisdiction.
George Salamis: In light of the work completed at Delamar in 2024 and the current political and economic backdrop in the U.S.
George Salamis: We believe we are better positioned now more than ever to make significant progress at LMR in 2025.
George Salamis: Over to Wildcat. So at Wildcat, part of our Nevada North Project, we completed a targeted 1,940 meter-triple program to refine our understanding of geology, metallurgy, and geotechnical elements of the project.
George Salamis: Results confirm strong oxide continuity and hydrogeological data confirmed a dry pit which we expect to simplify future operations and permitting.
George Salamis: We've also secured the first tranche of sage growth conservation credits and key disturbance permits.
George Salamis: Nevada North continues to evolve into a de-risk growth asset in a premier jurisdiction.
George Salamis: Nevada North is a project that we believe can advance rapidly to the next stages of feasibility and permitting, especially given the obvious synergies of having Florida Canyon so close by, operating 30 miles to the east. I will now hand the call to Andrée to walk through the financial highlights for the Q4 and full year of 2024.
George Salamis: Nevada North is a project that we believe can advance rapidly to the next stages of feasibility and permitting, especially given the obvious synergies of having Florida CAND in so close by, operating 30 miles to the east.
Andre Saint-Germain: I will now hand the call to Andre to walk through the financial highlights for the fourth quarter and four year of 2024.
Andrée St-Germain: Thank you, George. Integra closed fiscal 2024 in a strong financial position. The company saw a significant increase in cash in the Q4, ending the year with a cash balance of $52.2 million as a result of cash acquired with the Florida Canyon acquisition, the equity offering launched concurrently with the Florida Canyon transaction, a $5 million drawdown on our convertible loan in November, and cash flows from operations from Florida Canyon. We ended the year with a healthy working capital of $64.4 million. It is important to note that included in the working capital are short-term liabilities of approximately $17 million related to our convertible loan. The convertible loan had to be be classified as current debt, even though the loan only matures in July 2027, given that our lender has the right to exercise a conversion option at any time.
Thank you, George.
Speaker Change: Given that our lender has there right.
Andre Saint-Germain: The conversion option at any time.
Andrée St-Germain: In conclusion, from a financial perspective, Integra is well positioned to fund sustaining capital needs at Florida Canyon, development expenditures at Delamar and Nevada North, and cover our G&A expenditures for the upcoming years. It is important to note that full year 2024 results are not reflective of the business going forward due to Florida Canyon only being consolidated from 8 November to 31 December 2024. Next, we will focus on Q4 2024 metrics on slide 11. Q4 2024 revenue of $30.4 million and cost of sales of $25 million resulted in $5.4 million in gross profit, reflecting an 18% profit margin. Q4 net income of $9.5 million and net income per share of $0.07 included a bargain purchase gain of $14 million, partially offset by transaction and integration expenditures of $2.8 million.
Speaker Change: In conclusion.
Speaker Change: From a financial perspective, okay, great well positioned to fund sustaining capital need that Florida Canyon.
Speaker Change: Best of luck net expenditures at del Mar and Nevada nights and cover it.
Speaker Change: <unk> for the upcoming years.
Speaker Change: It is important to note that full year 2024 results are not reflective of the business going forward. Thank.
Speaker Change: Thank you, Florida Canyon only bank consolidated from November eight to December 31st 2024.
Speaker Change: Actually we will focus on Q4 of 2024 metrics on slide 11.
Speaker Change: Q4, 2024 revenue up $38 4 million.
Speaker Change: And cost of sales at 25 million resulted in five 4 million and gross profit.
Speaker Change: Reflecting reflecting an 18% profit margin.
Speaker Change: Q4, net income of $9 5 million and net income per share of seven.
Speaker Change: Included a bargain purchase gain.
Speaker Change: Again, a $14 million.
Speaker Change: Partially offset by transaction and integration expenditures of $2 8 million.
Andrée St-Germain: The purchase gain is primarily the result of the gold price increase from announcement of the Florida Canyon transaction in late July to the close of the transaction on 8 November. Adjusting net income for non-recurring items, such as the purchase gain and transaction cost, resulted in Q4 2024 adjusted earnings per share of $0.02. As previously highlighted by George, 2024 was a busy and very successful year at Delamar and Nevada North. Exploration and project expenditures at Delamar, Nevada North, and other exploration properties were $14.2 million for fiscal 2024, which included $8.2 million in engineering and permitting work at Delamar. Roughly $1 million in exploration drilling at the Wildcat deposit, which is one of the two deposits of the Nevada North project. I'll note that we anticipate similar expenditures in 2025. I'll now hand the call back to George to walk through the 2025 outlook and key objectives.
Speaker Change: The purchase gain is primarily result of the gold price increase from the announcement of the Florida Canyon transaction in late July.
Speaker Change: At the close of the transaction in November 8th.
Speaker Change: Adjusting net income for nonrecurring items, such as the purchase gain and transaction costs.
Speaker Change: Resulted in Q4 2024.
Speaker Change: Adjusted earnings per share of two cents.
George Salamis: As previously highlighted by George 'twenty 'twenty four is a busy and very successful year at yellow tomorrow in Nevada.
George Salamis: Exploration and project expenditures at Delhi.
George Salamis: Nevada.
George Salamis: Other exploration properties.
George Salamis: $14 2 million for fiscal 2024.
George Salamis: Which included $8 2 million in engineering and permitting work at the LMR and roughly $1 million in exploration drilling other wildcat deposit, which is one of the two deposits of the Nevada and North project.
George Salamis: I'll note that we anticipate similar expenditures in 2025.
George Salamis: I'll now hand, the call back to George So up to the 225 outlets and key objectives.
George Salamis: Thanks, Andre. Our priorities in 2025 are clear. At Florida Canyon, we aim to optimize production, grow cash flow, and initiate near mine exploration. At Delamar, we'll release our feasibility study midyear and expect to initiate federal permitting in H2 of the year. It is important to note that Delamar will be one of very few large-scale precious metal projects in the US actively being advanced through federal mine permitting. At Nevada North, we're exploring, de-risking, and laying the foundation for future development. We've significantly strengthened our team with two recent great executive appointments, which we'll touch on later, and we are well-positioned to deliver on our goals in 2025. From a corporate perspective, we are focused on disciplined capital allocation and bolstering our capital markets profile to become eligible for indices such as the GDXJ and appeal to larger institutional investors.
Andre Saint-Germain: Thanks Andre.
Speaker Change: Our priorities in 2025 are clear.
Speaker Change: At Florida Canyon, we aim to optimize production grow cash flow and initiate near mine exploration at del Mar We will release, our feasibility study midyear and expect to initiate the federal permitting in the second half of the year.
Speaker Change: It is important to note that Dell Omar will be one of very few large scale precious metal projects in the U S actively being advanced through federal mine permitting.
Speaker Change: And Nevada, North, we're exploring derisking and layering laying the foundation for future development.
Speaker Change: We've significantly strengthened our team with two recent.
Speaker Change: Right executive appointments, which we'll touch on later and we are well positioned to deliver on our goals in 2025.
Speaker Change: From a corporate perspective, we are focused on disciplined capital allocation and bolstering our capital markets profile to become eligible for indices, such as the Gtx, Jay and appeal to larger institutional investors.
George Salamis: On a longer term horizon, we will continue to evaluate strategic and accretive M&A opportunities that support our strategic goal of becoming a leading mid-tier gold producer. Our work at Florida Canyon is just beginning. Several parallel studies are underway to optimize and streamline all aspects of the operation, from metallurgical efficiency and mine planning to fleet management and G&A. With all of these optimization studies planned or underway, we are contemplating a new 43-101 at some point for Florida Canyon in the future. This is part of a continuous improvement mindset that we all have. We are focused on generating robust cash flow in 2025 and for many years to come. We see clear pathways to margin expansion and operational excellence.
Speaker Change: On a longer term horizon, we will continue to evaluate strategic and accretive M&A opportunities that support our strategic goal of becoming a leading mid tier gold producer.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Our work at Florida Canyon is just beginning several parallel studies are underway to optimize and streamline all aspects of the operation from metallurgical efficiency and mine planning to fleet management and G&A.
Speaker Change: With all of these optimization studies planned or underway, we are contemplating a new 43 101 at some point for Florida Canyon in the future.
Speaker Change: This is part of continuous.
Speaker Change: Continuous improvement mindset that we all have.
Speaker Change: We are focused on generating robust cash flow in 2025 and for many years to come.
Speaker Change: We see clear pathways to margin expansion and operational excellence.
George Salamis: We expect to be in a position to provide formal guidance for Florida Canyon in mid-2025, and a further operational update from the mine in the H2 of the year, which will provide detail on some of these important initiatives. We've made strong permitting progress on Delamar, and the broader permitting and regulatory landscape in the US is evolving in our favor. Idaho's SPEED Act is streamlining state-level permitting coordination, and just last week, the Trump administration signed a new executive order aimed at accelerating federal permitting timelines and providing financial incentives to support domestic mineral production. This includes fast-tracking critical and precious metal projects like ours and facilitating investment in US-based mine development. With a combination of these initiatives and bipartisan momentum for mineral independence, we believe we're advancing our development projects at the right time and in the right place.
Speaker Change: We expect to be in a position to provide formal guidance for Florida Canyon in mid 2025.
Speaker Change: And a further operational update from the mine in the second half of the year, which will provide detail on some of these important initiatives.
Speaker Change: Yeah.
Speaker Change: We've made strong permitting progress on del Mar and the broader permitting and regulatory landscape in the U S is evolving in our favor.
Speaker Change: Idaho's speed Act is streamlining state level permitting coordination and just last week. The Trump in Missy administration signed a new executive order aimed at accelerating federal permitting timelines and providing financial incentives to support domestic production.
Speaker Change: This includes fast tracking critical and precious metal projects like ours, and facilitating investment in U S based mine development.
Speaker Change: With a combination of these initiatives and bipartisan momentum for mineral independence. We believe we are advancing our development projects at the right time and in the right place.
Speaker Change: Yeah.
George Salamis: To support us in achieving our strategic goals, we have recently announced key executive additions, ones that enhance our operating strength and signal our readiness for the next phase of growth. We very recently welcomed Clifford Lafleur as Chief Operating Officer, who played a key role in the growth and success at SilverCrest Metals, ultimately leading to the recent $1.7 billion sale to Coeur Mining. Cliff will be instrumental for Integra as we look to optimize Florida Canyon and significantly advance Delamar and Nevada North. Cliff will play a key role in determining operating and cost guidance for Florida Canyon, which we expect to release in mid-2025. We also recently announced the appointment of Dale Kerner as VP of Permitting. Dale brings a deep level of experience from Perpetua Resources Corp.'s Stibnite project, one of the few gold projects in the US to receive a final record of decision in recent years.
Speaker Change: To support us in achieving our strategic goals, we have recently announced key executive additions.
Speaker Change: Once that enhance our operating strength and signal or readiness for the next phase of growth.
Speaker Change: We very recently welcomed Clifford Loeffler as Chief operating officer.
Speaker Change: A key role in the growth and success at Silvercrest metals ultimately leading to the recent.
Speaker Change: One $7 billion sale to occur mining.
Speaker Change: Cliff will be instrumental for Integra is we look to optimize Florida Canyon and significantly advanced LMR and Nevada North.
Speaker Change: Click will play a key role in determining operating and cost guidance for Florida Canyon, which we expect to release in mid 2025.
Speaker Change: We also recently announced the appointment of Dale corner as VP of permitting.
Speaker Change: Dale brings a deep level of experience from perpetual is denied project.
Speaker Change: One of the few gold projects in the U S to receive a final record of decision in recent years.
George Salamis: In our view, we could have not hired anyone better to help Integra spearhead the upcoming permitting efforts for Delamar. These two appointments reflect our commitment to operational excellence and permitting success as we build a leading US gold producer. I would like to end the formal part of the presentation with slide 17, as it captures our strategy: production, pipeline, jurisdiction, scale, and value. We now generate cash flow to fund growth. We hold one of the largest inventories of gold and silver in the Great Basin not controlled by a major mining company. Our pipeline and development projects are being efficiently de-risked. We operate in Idaho and Nevada, two of the best mining jurisdictions in the world. We've built a team with a proven track record of execution. Integra is no longer just a developer.
Speaker Change: In our view, we could have not hired anyone better to help integra spearhead the upcoming permitting efforts for Delaware.
Speaker Change: These two appointments reflect our commitment to operational excellence and permitting success as we build a leading U S gold producer.
Speaker Change: Okay.
Speaker Change: So I would like to end the formal part of the presentation with slide 17 as it captures our strategy.
Speaker Change: Production.
Speaker Change: Pipeline jurisdiction scale and value.
We now generate cash flow to fund growth.
Speaker Change: We hold one of the largest inventories of gold and silver in the great basin not controlled by a major mining company.
Speaker Change: Our pipeline of development projects are being additionally de risked.
Speaker Change: We operate in Idaho, and Nevada, two of the best mining jurisdictions in the world.
Speaker Change: We built a team with a proven track record of execution.
Speaker Change: Integra is no longer just a developer where U S coal producer with a growth runway and a clear strategy to become a mid tier gold producer.
George Salamis: We're a US gold producer with a growth runway and a clear strategy to become a mid-tier gold producer. At this point, I would like to turn the call back to the operator to begin the Q&A session. Thank you.
Speaker Change: At this point I would like to turn the call back to the operator to begin the Q&A session. Thank you.
Operator: At this time, I would like to remind everyone, in order to ask a question, press star 1 on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Our first question will come from Phil Kerr from Ventum Financial. Please go ahead, your line is open.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: For just a moment to compile the Q&A roster.
Speaker Change: Okay.
Speaker Change: Our first question will come from Felker from Ventana financial. Please go ahead. Your line is open.
Philip Ker: Thanks, operator. Morning, everyone. Obviously, a big congratulations on the acquisition of the mine and transitioning yourselves into a bona fide gold operator. Just a couple of questions here. First off, on the mining costs and unit cost it is in G&A, if we back out those numbers provided, are these unit costs that we can expect being carried forward over the course of this year and beyond?
Felker: Thanks, operator, good morning, everyone.
Speaker Change: Obviously, congratulations on the acquisition in mind insurance transitioning yourselves into a bona fide gold operator.
Speaker Change: Just a couple of questions here first off.
Speaker Change: On the mining costs and.
Speaker Change: Our unit costs. It is in G&A, if we back out those numbers provided.
Speaker Change: Are these.
Speaker Change: These unit costs that we can expect being carried forward.
Speaker Change: Over the course of this year and beyond.
George Salamis: Andrée, I'm going to hand that one to you.
Andre Saint-Germain: Andre I'm going to hand that one to you.
Andrée St-Germain: Thank you, George. I think at this point, we will just refrain from making any guidance on 2025 figures. Like George mentioned earlier today, we will have a better update in mid-May. When it comes to G&A expenditures, though, you can expect 2024 with G&A expenditures related to our stage, which was a development stage company. As we transition to producer, we can expect some of the G&A costs will increase accordingly.
Andre Saint-Germain: Thank you George I think at this point, well just refrain from making any guy.
Andre Saint-Germain: Guidance on 2025.
Gary: Hey, Gary.
Andre Saint-Germain: Well, we will have.
Andre Saint-Germain: George You mentioned earlier today, we'll have.
Andre Saint-Germain: Better update.
Andre Saint-Germain: And then Stan.
Andre Saint-Germain: Now when it comes to global fiduciary. So you can expect 2024.
Andre Saint-Germain: With any expenditures related to our stage, which was a development stage company as we transition to producer.
Andre Saint-Germain: We can expect some at the total cost will.
Andre Saint-Germain: It will increase accordingly.
Philip Ker: I guess I just felt that the unit costs per ton mined at reported was quite high. I was just wondering if there were some one-off items in there or severances or whatever it may be to previous personnel that may have been at site that may have been reflected in those.
Andre Saint-Germain: I guess I, just felt that the unit cost per ton mined.
Andre Saint-Germain: At reported was quite high so I was just wondering if there were some one off items in there or.
Andre Saint-Germain: Severance is or whatever it may be.
Andre Saint-Germain: Previous personnel that may have been a site that has been reflected in that in those.
Andrée St-Germain: No.
Andre Saint-Germain: Okay.
George Salamis: Yeah. Maybe, or you want to jump in on that one, Andrée St-Germain? I can handle that if you want.
Andre Saint-Germain: Yes.
Andre Saint-Germain: Or do you want to jump in on that one Andre I can.
Andre Saint-Germain: It can handle that.
Andrée St-Germain: That's perfectly fine.
George Salamis: Yeah. There are a lot of things that we're looking at optimizing right now. There are a bunch of optimization studies that are underway that will look at reducing those costs at some point in the future, and these studies will take some time to play out. We expect to give guidance on that by sometime mid-year this year. Also, we've got Clifford Lafleur coming in as our new COO. We need to give him some time to get comfortable and dive in, essentially, and take ownership of the site costs from Florida Canyon.
Andre Saint-Germain: Yes, I mean, so there's there are a lot of things that we're looking at optimizing right. Now there are a bunch of optimization studies that are underway that will look at reducing those costs at some point in the future and that these studies will take some time to play out so we expect to give guidance on that.
Andre Saint-Germain: By sometime mid year this year.
Andre Saint-Germain: Also we've got cliff refer lets say were coming in.
Speaker Change: As our new COO, and we need to give him some time to kind of get comfortable and dive in essentially in and take ownership of these of the costs from the site costs from the Florida Canyon.
Philip Ker: Okay. Just transitioning into the mining fleet, what sort of utilization are you seeing now? Maybe what sort of preliminary quotes have you seen or evaluated prior to purchasing this new equipment, and when can we expect that capital to be deployed?
Speaker Change: Okay, and then just transitioning into the mining fleet.
Speaker Change: Sort of utilization are you seeing now and maybe what sort of preliminary quotes have you seen or evaluated.
Speaker Change: Prior to.
Speaker Change: Purchasing.
Speaker Change: This new equipment and when can we expect the capital to be deployed.
George Salamis: Greg, I'm going to direct that question to you, if you don't mind.
Greg Robinson: Greg I'm going to direct that question to you if you don't mind.
Gregory Robinson: Yep. Yeah, we're seeing pretty good utilization in the pit. We target around 80%. We've been focused on increasing that, and we're getting up in the mid-80s for utilization. Our mining fleet is becoming due for its second planned component replacement, major maintenance. We're currently going through a study to determine what the best next steps are. That study is not complete, and we'll be providing some updates on that mid-year as well. We're looking at multiple different options for the mining fleet.
Speaker Change: Yep.
Speaker Change: Sure.
Speaker Change: Yes. So so we're we're seeing pretty good utilization in the pit we target around 80, 80%.
Speaker Change: As we've been focused on increasing that and we're getting up in the mid.
Speaker Change: Mid <unk>.
Speaker Change: For utilization.
Speaker Change: It is our mining fleet is.
Speaker Change: Becoming due fruits.
Speaker Change: Kind of second planned component replacement major maintenance.
Speaker Change: And we're currently going through a study to determine what the best next steps are that study is not complete.
Speaker Change: And we will be providing some updates on that mid year as well, but we're looking at.
Speaker Change: Multiple different options for the mining fleet.
Philip Ker: It sounds like you'll be able to get through at least the H1 of the year here with the equipment on hand, and then begin or use the study to evaluate what's most critical over the near term in the H2 of the year.
Speaker Change: So it sounds like you'd be able to get through at least the first half of the year here with the equipment on hand.
Speaker Change: Then begin.
Speaker Change: Use this study.
Speaker Change: To evaluate what's most critical over the near term in the latter half of the year.
Gregory Robinson: Yeah, that's correct. We're taking steps to make sure that the equipment is serviceable through the decision-making time and if we end up ordering new equipment, that it will last through that time as well. We can supplement with rental equipment as needed. We've got a couple of pieces on site right now to help maintain our fleet availability and meet our production.
Yes, that's correct, where we're taking steps to make sure that the equipment is serviceable through.
Speaker Change: Decision, making time.
Speaker Change: And if we end up ordering new equipment that it will last through that time as well.
Speaker Change: Can supplement with rental equipment as needed.
Speaker Change: We've got a couple of pieces on site right now to help maintain our fleet availability.
Speaker Change: To meet our production.
Speaker Change: Yeah.
Philip Ker: Okay, good stuff. Maybe just one last one. I think it was earlier this year, you engaged or initiated into a hedging program. Could you just provide a refresh on that and maybe just provide us with where you're at with that now and moving forward?
Speaker Change: Okay, good stuff and maybe just one last one.
Speaker Change: I think it was earlier this year.
Speaker Change: You engaged or initiated into a hedging program could you just provide a refresh on that and maybe just provide us with where you are at now.
Speaker Change: Now moving forward.
George Salamis: Sure. Maybe I'll pass that one off to you, Jason.
Speaker Change: Sure maybe I'll pass that one off to you Jason.
Jason Kosec: Yep, sure. It was outlined the number of, again, I don't have the number off the top of my head, but it represented about 75% of the gold sold ounces as reflected in the technical report. Again, that was just purchased through the purchase of put options with a floor of $2,400. For us, as we look at risk mitigation for this year and into next year, and if you look at, again, how the mine plan sequences, we view this year and next year as higher cost, higher capital, and in our view, a little bit higher risk years where we need to really make sure we're protecting margin. I think if you look back at what's reflected in the MD&A and financial statements, it'll outline what we spent on the put options.
Jason Banducci: Yeah sure so.
Jason Banducci: Outline the number of I guess again I don't have the number off the top of my head, but it represented about 75% of the.
Jason Banducci: Gold sold ounces as reflected in the technical report and again that was just purchased through the purchase of put options with a floor of 2400 and so for us as we look at.
Jason Banducci: Risk mitigation for this year and into next year and if you look at.
Jason Banducci: Again, how the mine plan sequences, we view this year and next year as higher cost higher capital and in our view a little bit higher risky areas, where we need to really make sure we're protecting margin.
Jason Banducci: I think if you.
Jason Banducci: You look back at what's reflected in the MD&A and financial statements and I'll outline what we spent on the put options, but again the beauty of put options as it protects the downside believes you fully exposed to the upside and so I think.
Jason Kosec: The beauty of put options is it protects the downside, but leaves you fully exposed to the upside. I think the put buying or any sort of hedging for 2025 is fully complete, so we'll obviously do no more. It's to our benefit that these options are going to expire worthless because we're seeing and we're selling gold today at over $3,000. As we look to evolve the strategy into next year, which again, as I've outlined, is a year that we'll probably look to do more hedging. We'll probably look to roll and do a similar style of put buying, nothing set in stone. Once we have a bit more of a vision on what that's going to look like, we'll provide an update to the market. Hopefully that answers your question.
Jason Banducci: The put buying or any sort of hedging for 2025 is fully complete so we will do obviously do no more than <unk>.
Jason Banducci: It's to our benefit that these these options are going to expire worthless, because we're seeing and we're selling gold today at over $3000 I think as we look to evolve the strategy into next year, which again as I have outlined.
Jason Banducci: A year that will probably look to do more hedging.
Jason Banducci: We will probably look to roll and do a similar style of.
Jason Banducci: Buying but again nothing is set in stone once we have.
Jason Banducci: A bit more of a vision on what <unk> will look like will provide an update to the market but.
Jason Banducci: Hopefully that answers your question. So yes hedging this year is done and we will probably look to do a bit more and again with where it is obviously the strike price wont be 2400 will probably move it up a bit.
Jason Kosec: Yes, hedging this year is done, and we'll probably look to do a bit more. Again, with where it is, obviously the strike price won't be $2,400. We'll probably move it up a bit.
Philip Ker: That's great color. I appreciate that, Jason. That's all I've got today, operator. Thank you.
Jason Banducci: That's great color I appreciate that Jason.
Speaker Change: Thanks, Craig operator, thank you.
George Salamis: Thanks, Phil.
Phil: Thanks, Phil.
Operator: As a reminder, to ask a question, please press star followed by 1 on your telephone keypad. Our next question comes from Heiko Ihle from H.C. Wainwright.
Speaker Change: As a reminder to ask a question. Please press star followed by the number one on your telephone keypad.
Speaker Change: Our next question comes from Heiko Ihle from H C. Wainwright. Please go ahead your line is open.
Heiko Ihle: Good morning. Thanks for taking my questions. Hello?
Heiko Ihle: Good morning, Thanks for taking my questions.
Heiko Ihle: Hello.
Heiko Ihle: Okay.
George Salamis: Go ahead, Heiko.
Heiko Ihle: Hello. Oh, perfect. On the mining fleet, can you maybe just walk us through a bit what you're seeing in regards to cost inflations and maybe even some bottlenecks in getting spares or whatever it is you might be needing?
Heiko Ihle: Go ahead, heiko so okay perfect.
Heiko Ihle: Your mining fleet can you, maybe just walk us through a bit what you're seeing in regards to cost cost inflations and maybe even some bottlenecks and getting.
Heiko Ihle: Payers or whatever it is you might be needing.
George Salamis: Okay. I will direct that one back to you, Greg.
Greg Robinson: Okay, I will direct that one back to you Greg.
Gregory Robinson: Yeah. If I think I understand your question, we don't really have a problem with spares or parts availability for the mining fleet. Right now, we operate under a MARC-type contract with the local Caterpillar dealer, and they have a strong presence on site and a good supply chain system, and parts availability hasn't been an issue since the bottom of COVID era. That said, because we're making this kind of study for the mining fleet in general, we're holding off on some of the major maintenance because that's very expensive, and we don't want to invest money needlessly if we don't have to. We're running a balance when equipment downs itself or shows signs that one of the major components is failing.
Greg Robinson: Yes, so if I if I think.
Greg Robinson: I understand your question.
Greg Robinson: There isn't.
Greg Robinson: We don't really have a problem with spares or parts availability for the mining fleet.
Greg Robinson: Right now we operate under.
Greg Robinson: Mark type contract with our with our with the local caterpillar dealer.
Greg Robinson: And they have a strong presence on site and a good supply chain.
Greg Robinson: System in parts availability hasnt been an issue since since kind of the bottom of Covid era.
Greg Robinson: We.
Greg Robinson: That said, we're because we're making this kind of study for the.
Greg Robinson: Or the mining fleet in general we're holding off on some of the major maintenance because thats very expensive and as we.
Greg Robinson: We don't want to invest money needlessly, if we don't have to.
Greg Robinson: We're running a balanced win win.
Greg Robinson: When equipment.
Downs itself or or show signs.
Greg Robinson: One of the major components of sailing well, we'll take the equipment down and we will replace that component and think about what.
Gregory Robinson: We'll take the equipment down, and we'll replace that component and think about what else needs changed at the time that equipment is down before we put it back in the dirt. Yeah, we're just kind of playing that by ear, managing the fleet as best we can while we make this decision. We want to make the right decision on our mining fleet going forward, and so we don't want to rush that process or do something rash. That's kind of the philosophy we're taking, and so far it's working for us.
Greg Robinson: What else needs changed.
Greg Robinson: Time that equipment is down before we put it back in the dirt.
Greg Robinson: But yes, that's where just kind of playing out by year managing the.
Greg Robinson: The fleets as best we can while we make this decision and we want to make the right decision on an ore mining fleet going forward and so we don't want to rush that process or.
Greg Robinson: Or do something rash and so that's kind of the philosophy, we're taking and so far it's working for us.
Heiko Ihle: Perfect. Just one quick follow-up on the south heap leach pad Phase 3B. You're going to spend $12 million on that this year as per your release. Could you maybe give some color on a quarter-by-quarter breakdown for that money going out the door, please? Thank you.
Speaker Change: Perfect and then just one quick follow up on the year, So our heap leach pad the phase III.
Speaker Change: You have spent 12 million on that this year.
Speaker Change: Australia release could you maybe give some color on a quarter by quarter breakdown for money going out the door. Please. Thank you yes.
Gregory Robinson: Yep. Yeah, for sure. We're starting to mobilize the contractor now. We've selected our primary contractor, and we have all the permits in place and everything, so that's all. We're ready to go, and we're going to start just kind of ramping up slowly through Q2. Probably towards the end of Q2, we'll start spending on the main part of the earthwork and the lay down of the plastic and that kind of thing. It should wrap up towards the end of Q3. Just for perspective, and if you followed the construction of Phase 3A last year, the scope of Phase 3B is much smaller. We don't have to build any additional event ponds or invest in the barren solution supply system or anything like that. It's basically just building the leach pad itself.
Speaker Change: Yeah for sure so we.
Speaker Change: We're starting to mobilize the contractor now has selected our primary contractor.
Speaker Change: And we have all the permits in place and everything so that.
Speaker Change: That's all we're ready to go and.
Speaker Change: We're going to start kind of ramping up slowly through the second quarter.
Speaker Change: Probably towards the end of second quarter, we will start spending.
Speaker Change: Kind of on the main main part of the Earth, where can the lay down in the plastic.
Speaker Change: And then anything.
Speaker Change: And it will it should wrap up towards the end of the end of third quarter.
Speaker Change: Just for perspective.
Speaker Change: If you followed the construction of phase III last year.
Speaker Change: The scope of phase III B is much smaller we don't have to build any additional than pons or invest in.
Speaker Change: Barren solution.
Speaker Change: Supply system or anything like that it's basically just building.
Speaker Change: The leach pad itself.
Gregory Robinson: We've done part of the prep work already last year in the dirt work in that leach pad area. We've got a good head start, and it should be a fairly smooth project.
Speaker Change: We've done part of the prep work.
Speaker Change: Already last year.
Speaker Change: And in the.
Speaker Change: The.
Speaker Change: Dirt work.
Speaker Change: And that Leach pad area. So we've got a good head start and should be a fairly smooth project.
Heiko Ihle: Perfect. I'll get back to you.
Speaker Change: Perfect I'll get back in queue.
George Salamis: Thanks, Heiko.
Speaker Change: Thanks, Michael.
Operator: There are no further questions at this time. I'll turn the call back over to Mr. Salamis for closing remarks.
Speaker Change: There are no further questions at this time I will turn the call back over to Mr. Solomon for closing remarks.
George Salamis: Well, thanks everybody for attending the presentation today. We're always open and able to do individual presentations if there are any follow-up questions to be had. I'd really like to thank everyone for attending the call. First and foremost, we're very proud of the work that we've done to get here. It really is an exciting time for Integra, and we appreciate the support. We look forward to providing another formal update as part of the Q1 2025 earnings call, which will be held mid-May sometime. Please do not hesitate to reach out to myself, Jason Kosec, or anyone else in the company if you have any other follow-up questions. On that note, thank you all very much.
Speaker Change: Okay, great well, thanks, everybody for attending the presentation today.
Again, we are always open and enable to do individual presentations. If there are any follow up questions to be had.
Speaker Change: I'd really like to thank everyone for attending the call first and foremost we're very proud of the work that we've done to get here.
Speaker Change: It really is an exciting time for integra and we appreciate the support.
Speaker Change: We look forward to providing another formal update as part of the 2025 Q1 earnings call, which will be held mid may some time. Please.
Speaker Change: Please do not hesitate to reach out to myself, Jason Vendue Chi or anywhere else in the company. If you have any other follow up questions and on that note. Thank you all very much.
Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.
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