Q4 2024 Orezone Gold Corp Earnings Call
Yes.
Operator: Hello, everyone, and welcome to Orezone 2024 Year-end Results and 2025 Guidance Webcast and Conference Call. Please note that this call is being recorded. After the speaker's prepared remarks, there will be a question and answer session.
Speaker Change: Hello, everyone and welcome to origin <unk> 'twenty 'twenty four year end results and 2025 guidance webcast and conference call. Please note that this call is being recorded.
Speaker Change: After the Speakers' prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time. Please press star followed by one on your telephone keypad. Thank you I'd now like to hand, the call over to Patrick Downey, President and CEO you may now begin.
Operator: If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you.
Patrick Downey: I'd now like to hand the call over to Patrick Downey, President and CEO. You may now begin. Thank you and welcome everybody to the Orezone Q4 and year-end 2024 results and 2025 guidance webcast and conference call. Well, 2024 was another very, very solid year for the company. Very strong results. We had record revenue, record EBITDA, record earnings per share and record net income, which I'm very pleased to state today. Gold production in the quarter was 36,502 ounces, which was a 37% increase quarter over quarter. We did expect a very strong Q4 and we realized that.
Patrick Downey: Thank you and welcome everybody to the ore zone Q4, and year end 2024 results and 2025 guidance webcast and conference call.
Speaker Change: While 2024 was another very very solid year for the company.
Speaker Change: Our strong results, we had record revenue record EBITDA record earnings per share and record net income, which I'm very pleased to to stay today gold production in the quarter was 36502 ounces, which was a 37% increase quarter over quarter. We did expect a very strong Q4 and we.
Speaker Change: Is that full year, 118000, 118746 ounces, which exceeded the midpoint of guidance of 110 to 125.
Patrick Downey: Full year, 118,746 ounces, which exceeded the midpoint Our gold sales in the quarter were 34,833 ounces at an average realized price of $2,632 per ounce, which resulted in $91.8 million in revenue. And our full year, sales were 118,697 ounces at an average realized price of $2,384, which resulted in a record revenue of $283.5 million. All in sustaining costs for the quarter very very solid in Q4 were $1,273 and for the full year were $1,447 which were within revised guidance which was affected by obviously the gold price which increased the royalties and the regional power issues which were outside of our control.
Speaker Change: Our Golden sales in the quarter were 34833 ounces at an average realized price of 2000 and $632 per ounce, which resulted in $91.8 million in revenue.
Speaker Change: And our full year sales were 118697 ounces at an average realized price of 2384, which resulted in record revenue of $283 5 million.
Speaker Change: All in sustaining costs for the quarter very very solid in Q4 or 1273 and for the full year were 1447.
Speaker Change: We're within revised guidance, which was affected by obviously, the gold price, which increased the royalties and the regional power issues, which are outside of our control.
Patrick Downey: If those had not occurred we actually would have been inside our actual guidance for the year which is another very solid year. As I stated, record net income in the quarter was $30.1 million and for the full year was $55.7 million attributable to Orezone shareholders. And we ended the year in a very, very strong financial position, cash of $74 million, senior debt of $67.3 million and available liquidity of $103.2 million. And very importantly, for the second year in a row we have had zero LTIs, which is very much attributable to the team on site. We had 1.33 million hours worked during the quarter and 5.37 million hours worked in 2024.
Speaker Change: Those who had not occurred we lack you would've been inside our actual guidance for the year, which is another very solid year.
Speaker Change: As I stated record net income in the quarter was $30 1 million and for the full year was $55 7 million attributable to ozone shareholders and we ended the year in a very very strong financial position.
Speaker Change: Cash at $74 million senior debt of $67, three and available liquidity of $103 2 million.
Speaker Change: And very importantly for the second year in a row, we have had zero LTE eyes, which is we're very much attributable to the team on site.
Speaker Change: We had a 133 million hours worked during the quarter and 537 million hours worked in 2024, and we've now got over 19 million hours worked LTI free which is really and truly world class.
Patrick Downey: And we've now got over 19 million hours worked LTI-free, which is really and truly world-class.
Speaker Change: I'll now hand over to Peter <unk>, Chief Financial Officer to go through the financial and operating highlights.
Peter Tam: I'll now hand over to Peter Tam, Chief Financial Officer, to go through the financial and operating highlights. Thanks, Patrick. For 2024, as stated earlier, Orezone recorded record revenue, net income, and earnings per share, helped by an impressive fourth quarter. Gold production of 36,502 ounces in Q4 was driven by improved head grades and record mill throughput, further fueled by record gold prices, resulting in quarterly net income attributable to Orezone shareholders of $30.1 million, and adjusted earnings per share of $0.06. For the full year 2024, net income attributable to Orezone shareholders was $55.7 million, and adjusted earnings per share was $0.11.
Speaker Change: Patrick CAD for 2024 updated earlier or the all reported record revenue net income and earnings per share held by an impressive fourth quarter gold production of 36 out of 502 ounces in Q4 was driven by improved head grade and record mill throughput further fueled by record gold prices, resulting in quarterly net income.
Speaker Change: Reveal two horizontal shareholders of $30 1 million and adjusted earnings per share of success for the full year 2024, net income attributable to horizontal shareholders was $55 7 million and adjusted earnings per share was <unk> 11.
Peter Tam: Gold sales were 118,697 ounces at an average realized price of $2,384 per ounce, with all in sustaining cost per ounce of $1,447. This resulted in a healthy all in sustaining cost margin of $937 per ounce.
Speaker Change: <unk> sales were 118697 ounces at an average realized price of $2 $384 per ounce with all in sustaining cost per ounce of $1447. This resulted in a healthy all in sustaining cost margin of $937 per ounce.
Peter Tam: In terms of growth, we commenced construction of the Phase 2 Hard Rock expansion in the second half of 2024 after securing over $105 million in new debt and equity. On debt, we upsized our Senior Secure Loan Facility with Coors Bank, our trusted partner, by another $58 million under a new Phase 2 term loan. A first drawdown of this loan was made in late December. Liquidity at December 31st, 2024 stood at $103.2 million, with $74 million in cash and over $29 million in undrawn debt. With this liquidity, Stage 1 construction of the Hard Rock expansion is comfortably financed to commissioning at first goals expected later this year.
Speaker Change: In terms of growth we commenced construction of the phase two hard rock expansion in the second half of 2024 after securing over $105 million in new debt and equity.
Speaker Change: On debt, we Upsized, our senior secured loan facility with <unk> Bank are trusted partner by another $58 million under a new phase III term loan a first draw it out of this loan was made in late December.
Speaker Change: Liquidity at December 31, 2024 stood at $103 2 million with $74 million in cash at over $29 million in Undrawn debt. What this liquidity stage one construction at the hard rock fashion is comfortably financed to commissioning and first oil expected later this year.
Peter Tam: Finally, gold has continued its ascent with spot prices now about $3,000 per ounce, which will benefit Orezone greatly as our gold production remains fully unhedged to rising gold prices. On production and unit costs for mining, mine tons were $4.7 million in Q4 of 2024, a decline of 20% from the same quarter in 2023, as Q4 of 2023 benefited from temporary utilization of a second mining contract. Mining rates did improve in the last two months of 2024 once additional new excavators and dump trucks were placed into service by the mining contractor, with mining rates in 2025 now hitting two million tons per month.
Speaker Change: Finally, golar has continue its SaaS with spot prices now about $3000 per ounce, which will benefit horizontal greatly as our gold production remains fully unhedged to rising gold prices.
Speaker Change: Slide.
Speaker Change: On production and unit cost for mining mine tonnes were $4 7 million in Q4 of 2024, a decline of 20% from the same quarter in 2023 as Q4 of 2023 benefited from temporary utilization of a second mining contractor <unk>.
Speaker Change: Mining rates did improve in the last two months of 2024 once additional new excavators at Amtrust were placed into service by the mining contractor with mining rates in 2025, now hitting 2 million tons per month.
Peter Tam: Plant throughput hit a new quarterly record in Q4 of 2024 at 1.65 million tonnes processed, a remarkable achievement when compared to plant design of 1.3 million tonnes. Plant throughput was aided by softer blend of oxide ore in the mill feed as mining progressed into the southern pits at Siga East and Siga South, stable grid availability, and no major plant maintenance. Processing costs per ton saw a sharp drop in the current quarter when compared to the same quarter in 2023. This drop was attributable to the record plant throughput and improved power costs as grid utilization was high at 92% and per ton power consumption was lower due to the softer nature of the mill.
Speaker Change: Planned throughput hit a new quarterly record in Q4 of 2024 at 165 million tonnes process.
Speaker Change: Marketable achievement when compared to plant design of $1 3 million titles.
Speaker Change: Planned throughput was aided by softer blend of oxide ore in the mill feed as mining progressed into the southern pits at Sika East LTE itself stable grid availability and no major planned maintenance.
Speaker Change: Processing cost per ton saw a sharp drop in the current quarter when compared to the same quarter. In 2023. This drop was attributable to the record plant throughput and improved power cost as grid utilization was high at 92% and per ton power consumption was lower due to the softer nature of the mill feed.
Patrick Downey: With that I'll hand, it back to Patrick Thanks, Peter.
Patrick Downey: With that, I'll hand it back to Patrick. Thanks, Peter. So we'll now go through 2025 production and cost guidance. Our gold production guidance will be between 115 to 130,000 ounces, very similar to 2024, slightly more on the upside on the higher end. All in sustaining costs again between 1400 to 1500, we expect to hold that. Sustaining capex of 9 to 10 million and growth capital of 44 to 51, which I'll go through a little later here. And our stage one hard rock expansion capital of 75 to 80. Our gold production like every other year that we've been operating in the oxides will be weighted towards Q1 and Q4, generally due to seasonality and mine sequencing, and we expect another strong Q4 in 2025.
Speaker Change: So now I'll go through 2025 production and cost guidance.
Speaker Change: Our gold production guidance will be between 115 to $130 nine just very similar to 2024 slightly more on the upside on the on the higher and all in sustaining cost again between 2500 500, we expect to hold that sustaining capex of $9 million to $10 million and growth capital of 44 to <unk> 51, which.
Speaker Change: I'll go through in a little later here and our stage one hard rock expansion capital of 75 to 80.
Speaker Change: Our gold production like every other year that we've been operating in the oxides will be weighted towards Q1, and Q4 generally due to seasonality and mine sequencing and we expect another strong Q4 in 2025.
Patrick Downey: We also are investing in the future. We are connected to the grid, but we expect that the availability will be between 90% to 92% going forward. So we are purchasing a fully installed diesel power plant, which will replace the rental equipment that we currently have, and will allow us that 100% availability on the power, which is similar to what the other companies are doing in the region. Our tailings footprint expansion is really a one-time this year. We're spending $11 to $13 million, but I want to point out that is for the full construction of the life of mine footprint, which includes stage one and stage two of the hard rock.
We also are investing in the future we are connected to the grid, but we expect that the availability of between 90% to 92% going forward. So what we are purchasing a full fully.
Speaker Change: Install diesel power plant, which will replace the rental equipment that we currently have and will allow us that 100% availability on the power, which is similar to what the other companies are doing in the region.
Speaker Change: Our tailings footprint expansion is really a one time this year, we're doing spending 11% to $13 million, but I want to point out that is for the full construction of the life of mine footprint, which includes stage one and stage two of the hard rock source investing that capital. This year that will allow us to go fully forward on the expansion.
Patrick Downey: So we're investing that capital this year that will allow us to go fully forward on the expansion of the hard rock and contain the oxides as well. Our resettlement action plan, which is really villages and infrastructure and housing, would be $11 to $14 million. We have one more to do after this, so this is our second last one, so we're almost finished on the wrap. They've all gone very smoothly, I've got to say, and gone very well. And this will allow us access into the high-grade P-17 area by the end of the year.
Speaker Change: The hard rock and contain the oxides as well.
Speaker Change: Our resettlement action plan, which is really villages in infrastructure and housing would be 11% to 14, we have one more to do after this this is our second last ones or almost finished on the wrap that all gone very smoothly I've got to say and gone very well and this will allow us access into the high grade <unk> 17 area.
Speaker Change: By the end of the year.
Speaker Change: So production forecast and ramp up this is a very important point to make I've talked about our guidance we are now.
Patrick Downey: So production forecast and ramp-up, this is a very important point to make. I've talked about our guidance. We are now well ahead on Stage 1 hard rock. That will allow us to exit 2025 at a run rate of 170 to 180 a year into 2026. We are now looking at bringing the Stage 2 hard rock forward. We were originally planning to do that in 2028 with a start-up in 2029. We are now in an active process of pulling that forward and constructing it in 2026, so we would exit 2026 at a run rate of 220,000 to 250,000 ounces a year.
Speaker Change: Well ahead on stage, one hard rock that will allow us to exit 2025 at a run rate of $1 70 to $1 80, a year into 2026.
Speaker Change: We are now looking at bringing the stage two hard rock forward than we were originally planning to do that in 2028 with a startup in 2029. We are now in an active process of pulling that forward and constructing it in 2026, So we would exit 2027.
Speaker Change: Sorry, 2026 at a run rate of 220 to 250000 ounces a year at current coal prices that really makes sense for us. We just done a recent raise which will allow us to look at that and.
Patrick Downey: At current coal prices, that really makes sense for us. We've just done a recent raise, which will allow us to look at that, and we do make a decision to accelerate that forward in the second half of this year, so we're quite excited about that. So where are we at with the stage one? Just a reminder, the oxide's in the background, which is operating. We're building stage one in the foreground. The jaw crusher will be for the full five million, so no changes there. Putting in a sag mill with five tanks and a ore reclaim system and some minor modifications to the gold recovery circuit.
Speaker Change: And we do make a decision to accelerate that forward into in the second half of this year. So we're quite excited about that.
Speaker Change: So where are we at with the stage one just a reminder, the oxides in the background, which is operating we're building stage one in the foreground the jaw crusher will be for the full $5 million. So no changes there putting in a sag mill with five tanks.
Speaker Change: Or reclaim system and some minor modifications to the gold recovery circuit.
Patrick Downey: Concrete started three months ahead of schedule and has remained ahead of schedule. The engineering is ahead of schedule and bulk quantities and all of the equipment are in line with budget and mostly have been ordered. The sag mill components arrived on site last week, as did all of the tank plate work. And the CIL tank construction direction will start in end of March, will likely start beginning of next week. And as I stated, the TSF expansion is underway. At the current schedule, this will allow us to ramp up in Q4 and we'll exit Q4 into 2026 at the run rate of 170 to 180.
Speaker Change: <unk> started three months ahead of schedule and has remained ahead of schedule. The engineering is ahead of schedule and bulk quantities and all of the equipment are in line with budget and mostly have been ordered the Sag mill components arrived on site last week as did all of the tank work and the CIL tank construction.
Speaker Change: Erection will start in the end of March will likely start beginning of next week and as I stated the <unk> expansion is underway at the current schedule. This will allow us to ramp up in Q4 and will exit Q4 into 2026 at the run rate of $1 70 to $1 80.
Patrick Downey: Quick photograph to show what it looks like and we will be putting out videos every month starting probably in April. In the background, you can see the oxide plant at the tailings cell 1, the expansion that we're doing will wrap fully around that, which will be for the full stage 1, stage 2 hard rock and the oxide. In the foreground is the oxide plant. You can see there's plenty of room, plenty of space. We do design our plants so they can run effectively, which has been very much shown in the oxide, which is designed for 5.2 and is running at over 6.
Speaker Change: Quick photograph to show what it looks like we will be putting out a video is every month starting probably in April.
Speaker Change: In the background you can see the oxide plant at the tailings.
Speaker Change: One that will the expansion that we're doing little rock fully around that which will be for the fall of stage one stage two hard rock and the oxide in the foreground is the oxide plant you can see plenty of room plenty of space. We do design our plants. So they can run effectively which has been very much shown in the oxide, which is designed for $5 two and is running at over six.
Patrick Downey: Photograph two there is the dump pocket and the jaw crusher. We're just about to shutter those walls and start pouring those walls next week. CIL tanks are finished, all concrete done, and we'll be laying out and erecting the tanks beginning next week. That contractor is fully mobilized onto site. Photograph 4 is the ball mill raft, which is a fairly large foundation poured into the ground, sorry, the sag mill raft, and then we're pouring the, shuttering the piers right now, and we'll be pouring the piers sometime in April. And you can see in Photograph 5 the sag mill components have all now arrived on site.
Speaker Change: Photograph too there is the dump pocket on the jaw crusher were just about to shutter those walls and start pulling those walls next week CIL tanks are finished all concrete done and we'll be laying out in erecting the tanks. Beginning next week that contractor is fully mobilized onto site.
Speaker Change: <unk> four is the ball metal raft, which is a fairly large foundation poured into the ground sorry, the Sag mill Route and then were pouring the picture they are suffering the payers right now and with reporting the payer sometime in April and you can see and photograph by the slag both components of all now arrived on site.
Patrick Downey: So all going very well. All managed by us, by the way. It's our team doing all of this work.
Speaker Change: All going very well all managed by us by the way, it's our team doing all of this work.
Patrick Downey: So how do we get to five million tons per annum? It, again, is another brownfields expansion. We expect it will cost between 90 to 95 million. We're updating that estimate right now. We're updating our detailed engineering with our engineer Lycopodium, and we expect to have that done in the next month or so. It'll be four extra tanks, an oxygen plant, a ball mill, which we've already identified, a thickener and water infrastructure, and a pebble crusher. We expect to go to the board to ask for that decision to go forward in late in Q2. And then we would get into that work and start ordering equipment later on this year.
Speaker Change: So how do we get to 5 million tonnes per annum.
Speaker Change: It again is another Brian teams' expansion, we expect it will cost between 90% to $95 million. We're updating that estimate right. Now we are updating our detail engineering with our engineered like a podium and we expect to have that done in the next month or so it'll before extra tanks and oxygen plant a ball mill, which you've already.
Speaker Change: <unk> identified a sector in water infrastructure and a pebble crusher.
Speaker Change: We expect to go to the board to ask for that decision to go forward in late in Q2.
Speaker Change: And then we would get into that work and start ordering equipment. Later on this year. It's about a 12 month construction, we're pretty confident of that obviously, we've got real live costing in terms of all the components. So we're fairly confident of what we can do here and the planned accelerated ramp up would have us completion in Q4 and eggs.
Patrick Downey: It's about a 12-month construction. We're fairly confident of that. Obviously, we've got real-life costing in terms of all components, so we're fairly confident of what we can do here. And the planned accelerated ramp-up would have us completion in Q4 and exiting 2026 at a run rate of around 230,000 to 250,000 ounces a year. So very exciting going forward. I hope to be able to announce that later in Q2 of this year.
Speaker Change: Getting 2026 at a run rate of around $2 30 to 250000 ounces a year, so very exciting going forward I hope to be able to announce that later in Q2 of this year.
Patrick Downey: So in summary, 2025 is really a transformational year for Orezone. We've been running the oxide plant very successfully, met guidance two years in a row now, sort of last full year this year of oxide only. We're in the stages of completion of the hard rock expansion, and that will bring our overall head grade up, production to around 170, 180, and will also reduce all in-sustaining costs going forward. So as you see this year, the $1400 to $1500 will come down in 2026. The it'll also provide increased operational flexibility. The one thing we're doing here is the oxide plant can run completely independently of the hard rock.
Speaker Change: So in summary, 2025 is really a transformational year for <unk>.
Speaker Change: We run in the outside plant very successfully met guidance two years in a row now.
Speaker Change: Last full year this year of the oxide only where index stages of completion of the hard rock expansion.
And that will bring our overall head grade up production to around 170, 180 and will also reduce all in sustaining costs going forward. So we see this year. The 4800 500 will come down in 2020.
Speaker Change: <unk>.
Speaker Change: It will also provide increased operational flexibility. The one thing we're doing here is the oxide plant can run completely independently of the hard rock. So it gives us great operational flexibility. We've also commenced our renewed exploration focus we started that in Q4 of 2024, we've put out some results already.
Patrick Downey: So it gives us great operational flexibility. We've also commenced a renewed exploration focus. We started that in Q4 of 2024. We put out some results already. Just a reminder, we've got 2.4 million ounces of mineral reserve at a $1,500 gold price with an average pit depth of less than 40 metres. So very, very shallow. It supports the full ramp up of 220 to 250, so anything above that really is additional to that. So the current drilling, we started in the north, had very positive results. We went down 200 meters below the reserve pit, and we continue to intercept grades of, you know, very thick wets of 1.64 over 46 meters.
Speaker Change: Just a reminder, we've got $2 4 million ounces of mineral reserve at a 500 dollar gold price for an average pet depth of less than 40 meters. So very very shallow.
Speaker Change: It supports the full ramp up of $2 20 to $2 50, so anything above that really is additional to that.
Speaker Change: So the current drilling we started in the North had very positive results. We went down 200 meters below the reserve pit and we continue intercept grades.
Speaker Change: <unk> of one six for over 46 meters. We're now down in the South which is a high grade <unk> 16, <unk> 17 areas.
Patrick Downey: We're now down in the south, which is a high-grade P-16, P-17 area. We've got two rigs down there right now, we're looking to planning to bring a third and we're expecting to release results from P16 and P17 in the near future and that will also start to show the underground potential of Bombore, which again we're very excited about.
Speaker Change: We've got two rigs down there right now we're looking to planning to bring a third and we are expecting to release results from <unk> 16, and <unk> 17 in the near future and that will also start to show the underground potential of Bombora, which again, we're very excited about.
Patrick Downey: We did announce that we're looking at an Australian secondary listing that is advancing fairly rapidly. We expect that that will give us increased trading liquidity, and we've seen that already with that announcement. Access to new investors, which we've already done. We raised $40 million recently in a very, very strong financing. It was very much oversubscribed, and several large Australian funds participated in that. And that will allow us to accelerate Stage 2 here, in terms of making that decision on when we do Stage 2 in 2026. So that's it, a very strong year, a record year.
Speaker Change: We did announce that we're looking at in Australia secondary listing that is advancing fairly rapidly. We expect that that will give us increased trading liquidity and we've seen that already with that announcement access to new investors, which we've already done we raised $40 million recently in a very very strong financing it was very much.
Speaker Change: Arrived and several largest trading funds participated in that and that will allow us to accelerate stage two here in terms of making that decision on when reduced stage two in 2026.
Speaker Change: So that debt a very strong year, a record year very pleased to announce that in a very exciting year in 2025. Thank you I'll hand, it back to the operator.
Patrick Downey: Very pleased to announce that, and a very exciting year in 2025.
Patrick Downey: Thank you.
Operator: I'll hand it back to the. We are now opening the floor for a question and answer session. If you'd like to ask a question, please press star followed by 1 on your telephone keypad. That's star followed by 1 on your telephone keypad. We will pause for a brief moment to wait for the questions to come in.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: First a question and answer session, if you'd like to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change: Followed by one on your telephone keypad, we will pause for a brief moment to wait for questions to come in.
Speaker Change: Okay.
Speaker Change: Yes.
Angelina Gouel: Your first question comes from the line of Angelina Gouel from Canaccord Genuity. Your line is now open. Good morning team, and congratulations on the quarter.
Speaker Change: Your first question comes from the line of and Divina goodwill from Canaccord Genuity. Your line is now open.
Divina Goodwill: Good morning team and congratulations on the corner I have two questions on the 2025 Capex guidance provided first in terms of the total capex for Sichuan increase by about 16% to $93 million. If we take the midpoint of the 2025 guidance and also factor and what's what was already spent in <unk>.
Patrick Downey: I have two questions on the 2025 capex guidance provided. First, in terms of the total capex for stage one, it increased by about 16% to 93 million if we take the midpoint of the 2025 guidance, and also factor in what's what was already spent in 2094. I just want to know what's driving the increase for the stage one capex. And could you also provide a bit more color on the other growth capex items? Yeah, a bit of that is some contingency we've added in there, you know, and we're also doing a little bit more work on preparing for the Stage 2.
Speaker Change: I just wanted to know what's driving the increase.
Speaker Change: For the stage, one capex and could you also provide a bit more color on the other growth capex items.
Speaker Change: Yes, a bit of that is.
Some contingency we've added in there.
Speaker Change: We're also doing a little bit more work on preparing for the stage two so we've added a little bit more capital in there and we've also got more pricing and where we're at and we've accelerated some of our.
Patrick Downey: So we've added a little bit more capital in there, and we've also got more pricing and where we're at. And we've accelerated some of our... Equipment Deliveries. So we want to make sure that we've got things in place for the Q4 startup.
Speaker Change: Equipment deliveries, so we want to make sure that we've got things in place for the Q4 startup that's really yet.
Patrick Downey: That's really it. On the growth capital, it's really 20 to 25 on that power plant. We weren't initially going to do that. We're actually going to continue to rent at one point, which we wouldn't have that capital. But when we looked at that, we decided that it was much better for us to. to buy that equipment and own it, and we would operate it. We have full control of it then, and it's for the oxide and the hard rock. So it's a decision that we made. We looked at what other companies were doing in the region.
Speaker Change: On the growth capital, it's really 20 to 25 on that power plant. We werent initially going to do that we're actually going to continue to rent at one point, which we wouldn't have that capital, but when we looked at that we decided that it was much better for us too.
Speaker Change: To buy that equipment and own it and we operated we have full control of it then and it's for the oxide and the hard rock. So what's the decision that we made we looked at what other companies were doing in the region. <unk> are now doing exactly the same thing and they will be on the grid. So it really was that opportunity to do that we had the money to do it so.
Patrick Downey: I've seen Kiak are now doing exactly the same thing, and they will be on the grid. So it really was that opportunity to do that. We had the money to do it, so we decided to do it.
Speaker Change: We decided to do it.
Patrick Downey: On the footprint, the TSF, we have about 11 to 13 million, and that's really around doing the TSF for both the Stage 1 and Stage 2. We could have done a smaller footprint there, but essentially doing the large footprint gives us that optionality that if we do the Stage 2 in 2026, that TSF is there and ready to accept the full 5 million tons from the hard rock and the 6 million tons from the oxide going forward. That's essentially it.
Speaker Change: On the footprint the TSA airfare, we about 11% to $13 million and that's really around the.
Speaker Change: During the psf for both the stage, one and stage two we could've done a smaller footprint there, but essentially during the large footprint gives us that optionality that if we do the.
Speaker Change: Stage two in 2026 that Psf is there and ready to accept the follow 5 million tonnes from the hard rock and the 6 million tonnes from the oxide going forward.
Speaker Change: Essentially yes.
Speaker Change: Okay.
Angelina Gouel: Okay, thank you, that's really helpful.
Speaker Change: Thank you that's really helpful and my second question is when should we expect 25 capex estimate for each year.
Patrick Downey: And my second question is, when should we expect the 2025 CAPEX estimate for stage two as it's on track to start later? We're working on it right now. We've actually engaged the engineers on that. They're doing what we call the front-end engineering and design. So we know what a lot of the components are. We're looking at three ball mill options that we would expect to have an answer on here in the coming weeks. Once that's done, we will have our very, very tight estimate of that to go to the board. I expect that will happen later in Q2, and we'll have an answer and news to the market probably later in Q2.
Speaker Change: It's on track to start later this year.
Speaker Change: We're working on it right now we've actually.
Speaker Change: Engage the engineers on that Theyre doing the deep what we call the b in the front end engineering and design.
Speaker Change: So we know what the obviously a lot of the components are we will we're looking at three.
Speaker Change: Three ball mill options that we would expect to have an answer on here in the coming weeks. Once thats done. We will have are very very tight estimate of that to go to the board I expect that will happen later in Q2 and we'd have been answered.
Speaker Change: And.
Speaker Change: <unk>.
Speaker Change: News to the market probably later in Q2.
Angelina Gouel: End of Q2. Okay, that's great. Thank you. And that's all for me. I'll jump back.
Speaker Change: End of Q2.
Speaker Change: Okay. That's great. Thank you and that's all for me I'll jump back into queue.
Speaker Change: Yeah.
Speaker Change: Yeah.
Operator: Again, if you'd like to ask a question, please press star followed by one on your telephone keypad.
Speaker Change: Again, if you'd like to ask a question. Please press star followed by one on your telephone keypad.
Operator: Your next question comes from the line of Allen. My apologies.
Speaker Change: Your next question comes from the line of Alan.
Speaker Change: My apologies.
Operator: Again, if you'd like to ask a question, please press star followed by 1 on your telephone keypad.
Speaker Change: Again, if you'd like to ask a question. Please press star followed by one on your telephone keypad.
Patrick Downey: As of right now, since we don't have any pending questions, I'd now like to hand the call back over to Patrick. Thank you. Okay, good, thanks.
Patrick Downey: And you're right now since we don't have any pending questions I would now like to hand, the call back over to Patrick.
Patrick Downey: Okay, great. Thanks.
Patrick Downey: As I said, very, very good 2024, a record year 2025, transformational, really looking forward to getting stage one of the Hard Rock started up and then making a decision on stage two. But more importantly, as well as the exploration that we have coming forward, results throughout the year. So looking forward to a very, very busy 2025. Thank you.
Patrick Downey: As I said very very good 2020 for a record year 2025, transformational really looking forward to getting stage one of the harder rock started up and then making a decision on stage two but more importantly, as well as the exploration that we have coming forward results throughout the year. So looking forward to a very very busy 2025.
Patrick Downey: Thank you.
Operator: Thank you for attending today's call. You may now disconnect.
Speaker Change: Hey, Brian attending today's call you may now disconnect Goodbye.
Operator: Goodbye.
Patrick Downey: Okay.
Operator: Thanks for watching!
Patrick Downey: Okay.