Q1 2025 K92 Mining Inc Earnings Call
Speaker Change: Thank you for standing by. This is the conference operator. Welcome to the K92 Mining 2025 first quarter financial results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded.
Speaker Change: Thank you up here and thanks, everyone for attending <unk> 19, <unk> 2025 first quarter results Conference call. We hope you and your families are doing well in it.
Speaker Change: It isn't and myself, we have on the line, John Lewis, Chief Executive Officer, and director and Justin <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. Please refer to the cautionary notes in risk disclosure in our MD&A in slide two of the webcast.
Speaker Change: 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.
Speaker Change: And welcome everyone.
Speaker Change: And as always with safety pretty much pay 90 two's number one priority.
Speaker Change: Pleased to report there'll be no lost time injuries recorded for the first quarter, marking yet another major safety milestones, but now seven consecutive zero LTI courses.
Speaker Change: During this time to independent safety audits were completed and from those old its a number of actions have been identified and many actions have already been taken and completed.
Speaker Change: Concurrently that's been a major focus within the organization on reinforcing the safety first culture.
Speaker Change: Employees have responded well to the significant increase in hazard identification and risk assessments completed our safety team has been expanded onsite safety technologies are being enhanced and more technologies are planned to be introduced in the near future.
Taken in the previous conference calls, we take the increased loss time injury frequency rate in 2023 extremely seriously, but also noting that historically K 92, it's all crazy one of the best Safety Records in Papua New Guinea, and the broader Australasia region as shown in this slide I'd like to reiterate the canine to relentlessly pursues.
Speaker Change: Our goal of achieving zero harm among our workforce.
Speaker Change: Earlier this month the inaugural canine tooth pairs award ceremony was held in Port Moresby, where we recognized and celebrated outstanding individuals and teams within our organization that have demonstrated and exemplified our vision mission and most importantly, our volumes.
Speaker Change: Is the acronym for our five values that we strive to uphold collaborative teamwork accountability in everything we do respect Carlos excellence in outcomes and safety always winter its receipt of fall shipping it on a cash prize in recognition of their outstanding contributions.
Speaker Change: The ceremony was attended by several government officials, including Gerry Gerry managing director at mineral resources Authority of Papua New Guinea, who delivered an inspirational closing speech.
Speaker Change: As shown there on the image on the right. The event was also featured in local media, including on television and on the news and the Kids Award a part of our ongoing commitment to building a strong values driven culture at canine too where people are recognized celebrated and empowered to lead by example.
Speaker Change: Moving on to operational performance during the quarter. The currency Gold mine produced 47 times and 817 ounces gold equivalent cash costs of $559 for iron skull and all in sustaining cost of $1010 per ounce gold or on a co product base.
Speaker Change: <unk> cash costs of $616 per ounce gold equivalent and all in sustaining cost of $1048 gold equivalent.
Speaker Change: This marks the second highest quarterly production on record and represents a 74% increase compared to Q1 2024.
Speaker Change: Annotated on the chalk all in sustaining costs have been notably higher than cash costs. Since the beginning of 2023 Jody Cain onto his ongoing considerable investment in the state's suite expansion with costs expected to decline considerably after delivering the expansion, which will be discussed later in the presentation in terms of throughput totaled one.
<unk> 3449 tonnes was process.
Speaker Change: <unk> of $14 nine grams per ton gold equivalent.
Speaker Change: The elevated head grade was significantly above budget benefiting from higher grades stopes symbols, Cora and jobs as well as a positive gold reconciliation relative to the latest independent mineral resource estimate images you can see here is shown from jobs and an example of some of the high grade areas that were mined.
Speaker Change: In terms of key operational quarterly physicals total material mined was the second highest on record with plants hukou optimally reduce to maximize recoveries due to the high head grades.
Speaker Change: The last few quarters have also provided us with the opportunity in the underground mine to prioritize waste development for the stage three expansion, resulting in a record 211000 tons of wasting money.
Speaker Change: On development, our new monthly development advanced record was set in March with 954 meters achieved 6% greater than the previous monthly record set in the fourth quarter of 2024 are nearing the stage III expansion run rate of the size and meters per months.
Speaker Change: The development rates are expected to continue to improve in 2025 on the back of various key enablers being fully integrated and these include the power upgrade which was completed in Q4 2020 for the interim primary ventilation upgrade which was completed in January this resulted in a 50% increase in airflow, which was notably.
Speaker Change: Higher than the 30% increase expected confirming that the modeled airflow resistance faxes for the expansion are conservative.
Speaker Change: Second stage of the interim water upgrade which was completed a gain at the end of January providing clean water service to the main mine. The number of available headings has also significantly increased and will continue to increase through the year driven by opening additional mining fronts.
Speaker Change: Also of note high speed development experts have been hard and we will have additional jumbos within the company to be introduced as as we required them working with those high speed development experts a major focus continues to be placed on an enhanced maintenance program to increase equipment availability.
Speaker Change: And then concurrent with these enablers, we're on the cusp of a productivity technology leap forward with the underground fiber optic network nearly completed this will unlock multiple productivity improvements in the coming months, including surface remote loading real time fleet management systems personnel tracking and introduction of best week ops for enhanced shorten.
Speaker Change: <unk> control.
Speaker Change: As previously mentioned throughput during the quarter was deliberately reduce to maximize recoveries to the high head grades Q1 achieved very strong recoveries of 95, 8% for gold and 95, 1% for copper both near records.
Speaker Change: Recoveries for the last four quarters have been notably higher than the uptake. The DFS. This performance is driven by an improved reagent mix, while also benefiting from higher gold head grades in the second half of 2020 for the first quarter of this year.
Speaker Change: The strong performance of the states to a plant bodes well for the stage III plant, which is a more optimal circuit design improved technologies and instrumentation, including online analysis.
Speaker Change: The multiple daily weekly monthly throughput records well above current design demonstrates a significant potential upside of the state's III process client, notably stage three was designed using the same conservative parameters at this stage to a plan to better realize the potential the stage three plant under construction includes design allowance for cost.
Speaker Change: Active expansion through upgrades to the flotation and filter press capacity. We believe these upgrades will enable the plant to achieve the 1.8 million tonnes per annum throughput required for the states for expansion, allowing the states to a plant to be repurposed for alternate feed sources.
Speaker Change: I'll now turn the call over to our Chief Financial Officer, Justin Blase to discuss our financial results for the first quarter.
Justin Blase: Thank you John and Hello, everyone. During the first quarter of 2025, we had record quarterly revenue of $144 6 million, an increase of 142% compared to Q1 2024, we sold 45886 gold ounces at an average selling price of two.
Justin Blase: <unk> thousand $739 compared to 27996 ounces at an average selling price of $2016 in the prior year.
Justin Blase: As at March 31, 2025, there were 4425 gold ounces in inventory, including both concentrate enduring a decrease of 536 gold ounces when compared to December 31, 2024, due to timing of sales.
Justin Blase: During the first quarter of 2025 cost of sales was $34 1 million compared to $40 1 million in the prior year or $27 4 million compared to $32 9 million when excluding noncash items lower cost of sales was primarily due to a higher proportion of capital tons mined realm.
Justin Blase: To operating tons resulted in increased capitalization of development expenditures when compared to Q1 2024.
Justin Blase: Q1, 2025 cash flow from operating activities before changes in working capital was $80 9 million compared to $20 million in the prior year, a new quarterly record as of March 31, 2025, we had 182.1 million in cash cash equivalents and term deposits while spending 39.
Justin Blase: In expansion capital during the quarter, we had a record working capital balance of $187 7 million and a record net cash balance of $123 million the.
Justin Blase: The company also has a debt balance of $60 million during.
Justin Blase: During the quarter the company drew $20 million from the Canadian credit facility and repaid the Papua New Guinea and credit facility in full as a result, the company no longer holds any cash designated as restricted cash for the purposes of security under the loan with Trafigura.
John Lewis: As John mentioned during the quarter. They can answer gold operations produced 45735 gold ounces 1 million 141379 pounds of copper and 34085 ounces of silver or 47817 ounces of gold equivalent.
John Lewis: We sold 45886 ounces of gold 1 million 69373 pounds of copper and 32000 and 439 ounces of silver.
John Lewis: Net of byproduct credits being credit cash cost of $559 per ounce and an all in sustaining costs of $1010 per ounce of gold, which was significantly below our realized selling price of 2000 and $739 per ounce, our first quarter byproduct cash cost per ounce of gold decreased to 500.
$59 from $934 in Q1 2024, the decrease was due to significantly higher gold ounces sold increased capitalization of development expenditures due to a higher proportion of capital tonnes mine relative to operating tons and lower variable costs.
John Lewis: Associated with reduced throughput.
John Lewis: These were partially offset by lower byproduct credits. It is important to note that we will see a downward pressure on costs via economies of scale as operations ramp up in stage. Three expansion is complete I will now turn the call back to John to continue with the rest of the presentation.
John Lewis: Well, thank you Justin.
John Lewis: For the exploration and girls section, we begin with an update on the stage three and stage four expansions, which plan to fundamentally transform canine to into a tier one mid tier producer three sequentially, increasing production to over 300000 ounces gold equivalent per annum with the commissioning is stage three expansion targeting the second half of second quarter.
John Lewis: 2025 to start commissioning and then to over 400000 ounces gold equivalent per annum with stage four targeting second half of 2027.
John Lewis: As at the end of April 77% of the Golub capital had either been spent or committed with a significant portion of the project on a fixed price lump sum basis.
John Lewis: Importantly, the project is fully funded and our financial position is strong pain onto as a cash balance at the end of Q1 of 182 million in cash. We also have access to significant amounts of liquidity through Undrawn credit facilities was 60 million available to draw down on demand plus an additional 30 million.
John Lewis: Liquidity through an accordion feature.
John Lewis: <unk> record levels of production and the record gold price environment has resulted in strong free cash flow generation as Justin noted our net cash balance has significantly grown during the last three quarters, even after considerable capital expenditure during that period.
Justin Blase: And lastly, our commodity price downside is protected through the cost effective purchase of put option contracts earlier. This month for a little under 4 million or $33 25 per ounce. We purchased HUD auction contracts covering may until the end of 2025 for 15000 ounces of gold per.
Justin Blase: Months at $3000 per arms to protect against downside price risk, but to be clear, it's not a hedge we will sell at spot. If it is higher than $3000. An ounce. This is an insurance and we retain full exposure to the upside in the commodity price in summary, our financial position.
Justin Blase: Luke is strong.
Justin Blase: I'll now provide an update on the construction progress for the stage III expansion, starting with the underground the twin incline is complete the first ore passes being developed and is on schedule to be fully operational in Q3. The Puma incline is approximately 200 meters of development remaining and a schedule proposal breakthrough in Q3 on ventilation raise bore is completing.
Justin Blase: A two leg fresh air rise with the first leg completed the second leg is being developed and on schedule for completion in mid 2025.
Justin Blase: Upon completion of the Puma breakthrough and the ventilation raises we expect each will contribute an additional 50 cubic meters per second of airflow to the circuit, representing a combined 60% increase to airflow from current levels.
Justin Blase: She was previously Conservative model mine resistance factors, we now expect to not need the new primary vent fans to meet stage III vent requirements. These fans, who really needed for stage four so our plan is to opportunistically install them in 2026 to minimize any disruption.
Justin Blase: On peso commissioning is targeted to commence in late Q4.
Justin Blase: And while the infrastructure is being transformed so as the number of mining fronts with a significant increase underway to drive the ramp up.
Justin Blase: It is important to highlight for several quarters, we have leveraged the high head grades to prioritize waste development with Q1, marking a record for waste tonnes. Mined. This has resulted in a notable increase in our inventory of areas ready for long haul stoping, which we will leverage in the second half of the year as we ramp up or tons for the stage three.
Justin Blase: <unk> expansion.
Justin Blase: Now I move to the latest drone footage taken just a few days ago from a construction site of the $1 2 million ton per annum stage III expansion process plant.
Justin Blase: Starting at the dry end of the client and the full brand. The ROM pad continues to get built with waste rock at the crusher. The wrong then the crusher mechanical and structural installation is complete installation of wing walls and electric Fitbit is underway the conveyor to the search business completes the search pain and reclaim area are also struck.
Justin Blase: Trolley and mechanically complete on the far side of the so it's been either view work is underway on the motor and belt installation pre assembly of the conveyor to connect to the grinding circuit is complete and installation will commence shortly.
Justin Blase: The high voltage switch room is installed including H P cables to their respective crusher in <unk>, Switzerland.
Justin Blase: Temporary power to expedite commissioning is also being installed.
Justin Blase: Commissioning of grid power to the process plant is planned for June.
Justin Blase: But the grinding circuit, both the Sag and ball mill shells and heads who installed last month.
Justin Blase: Preparation of girth gear and bearings is ongoing.
Justin Blase: By pressure lubrication piping is practically complete for both males, 80% of all rubber line piping at mill area has been installed electrical installation is ongoing.
Justin Blase: The cyclones in the M. C C are complete.
Justin Blase: For the flotation area, all mechanical structural and tanks are installed.
Justin Blase: Major cable routes have been completed final griping of mechanical equipment and level piping schools is 95% complete electrical installation is ongoing.
Justin Blase: The multi stream analyzer was installed with piping mainly completed.
Justin Blase: In terms of the thickness the concentrate thickener is complete the tailings thickener construction is complete has been sealed and is ready for final hydro test or the concentrate filter presses all structural mechanical and tanks are installed with piping and electrical installation ongoing as at the end of April 87% of the <unk>.
Justin Blase: <unk> III process plant construction is complete in terms of ancillary buildings, the interim Paris patient and warehouse are complete.
Justin Blase: The New Columbian Creek Camp is also almost complete all rooms are installed and available for occupation.
Justin Blase: Final project is the kitchen and dining facilities. Now this has added an additional 160 ensuite rooms. The campus initially being used for excess capacity during construction and we'll then obviously be repurposed to provide accommodation for the states for expansion.
Justin Blase: Primary power station is progressing well with civil works advanced for the Gen set installation costs all the underground electrical conduit, having been installed tested and are now complete.
Page one commissioning is planned to commence in June in terms of the new maintenance facilities, all structural steel and buildings are on site. The main workshop is progressing well with the foundations in footings Court has shown in the image.
Justin Blase: On the peso project the underground paste plant construction contracts as being self awarded tailings filtration plant surface storage system earthquakes are progressing and the award of the contract for these two packages is planned for later this month.
Justin Blase: All long lead items have been ordered front end engineering design work is complete completion of detailed engineering work and design by G. Our engineering is nearly complete and cultural engineering is well advanced.
Justin Blase: In the first quarter, we were honored to host a delegation from the <unk> and eastern Highlands provincial governments, where our various licensees and leases are located.
Justin Blase: In February we welcomed a delegation led by governor of moral be province, the honorable Luther Winging as shown on the left and in March a delegation led by the governor of the Eastern Highlands Province, the honorable Symons here shown on the right.
Justin Blase: Both visits received strong media coverage and included tours of the underground process plant stage III construction and a helicopter tour of our exploration areas.
Justin Blase: These visits also underscore our strong commitment to transpire in stakeholder engagement and responsible mining.
Justin Blase: Moving on to exploration, we're drilling the core of course size Jud judge size vein system from underground plus the Ara conquer vein system from the surface.
Justin Blase: At Cora.
Justin Blase: During the first half of the year drilling has focused on increasing drill density at the twin inclined mining fronts and above main mine ahead of stage three expansion ramp up recently.
Justin Blase: Recent drilling has delivered strong results expanding high grade zones, and also intersecting near mine infrastructure Dilatant zones, as annotated and the long section here.
Justin Blase: Later in the year, a stronger focus as planned on drilling core deep said debt, while also continuing our step out drilling to the south.
Justin Blase: A judge drilling results continue to extend high grade mineralization uptick and above the main mine workings are shown in the top black ellipses multiple high grade results outside of these other results have also been recorded similar to Cora <unk> Deeps drilling is planned for the second half of the year.
Justin Blase: But February the 20th we announced the latest 13 holes at Ara conquer bringing the total number of holes drilled and the maiden program to 43 holes.
Justin Blase: A major highlight from the results was the confirmation of two significant high grade veins a R. One and <unk>, two which recorded a significant average true thickness of approximately three meters over large strike lengths of approximately 675, and 775 meters respectively for a L. One and two.
Justin Blase: The veins have a strong high grade drilling rates at plus five gram per ton of 50% for a one and 42% for a or two and plus 10 gram per ton gold equivalent 28% for a R. One and 21% for <unk>.
Justin Blase: To date step out drilling has focused towards the size and we are nearing a major milestone in our exploration capabilities with the arrival of the compact Kelly portable rig in June this rate will enable drilling of the northern extension of <unk>, which has shown an ellipse is a large highly prospective target area, but also features a strong <unk>.
Justin Blase: So from artisanal workings, we see high potential for underground mining at Eric Homecare.
Justin Blase: Drilling results also extended the interpreted bulk tonnage zone, approximately 150 meters south to a total strike length of 900 meters vertical depths of up to 650 meters and average true thickness recorded from drilling of approximately 48 Peters.
Justin Blase: The bulk zone remains open in multiple directions, and we'll also be targeted from the northern extension drilling a schulman Neal it's.
Justin Blase: We view it as a longer dated projects with the high grades the priority for the near term mining.
Justin Blase: Our accomplished growth over the past year has been exceptional.
Justin Blase: The image on the left shows trailing as of February 2024, while the far right highlights our latest results just one year later.
Justin Blase: This progress has driven an increase in drilling activity for one rig at the start of 'twenty 'twenty four to up to four rigs operating.
Justin Blase: <unk> ahead, our surface drilling capabilities will be significantly enhanced with the arrival of the new highly portable rig in June a rebuild of one of our surface rigs entering production. This month and two additional rigs recently ordered.
Justin Blase: Lastly, we.
Justin Blase: We highlight the significant pipeline of highly prospective exploration targets.
Justin Blase: The colored icons indicate where were currently drilling and the black icons indicate where we plan to drill in the next 24 months upon delivery of the stage III expansion, we expect 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 perspective.
Justin Blase: Targets concurrently.
Justin Blase: With that operator, we'd 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 will hear a tone acknowledging your request.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing any keys.
Speaker Change: To withdraw your question. Please press Star then two.
Ralph: Our first question comes from Ralph <unk> with Stifel. Please go ahead.
Speaker Change: Thanks, Operator, and good day, John David and team Thanks for taking my questions but.
Speaker Change: The first one is whether you can help me reconcile some of the commentary around positive gold reconciliation John can you help us understand by domain or by mining front is this something that's evenly distributed between K one key to injured lose their helpful. Thank you.
Ralph: Thanks Ralph.
Ralph: I can't give you the.
Precise breakdown between K, one K T M.
John Lewis: And John.
Ralph: Chuck.
Ralph:
Ralph: It was a it was spread across them.
Ralph: And obviously he was was.
Ralph: It is significant.
Ralph:
Ralph: Was the high grade area that they were high grade stopes that came at us alright, great.
Ralph: I can't really give you the reconciliation in the individual ones, Okay understood and maybe if you can address sort of some of the pinch and swell characteristics that are happening or.
Ralph: Contracting contrasting that against maybe some selective mining on high grade areas that would also be helpful.
Ralph: Sorry.
Speaker Change: How do you mean, Rob sorry.
Ralph: Yeah. Thanks, John just wondering if you can.
Ralph: Talk a little bit about pension swell in some of these areas, where you're getting the higher grades and where youre seeing part.
Ralph: A reconciliation has that been a factor.
Ralph: Pinch and swell hasn't really been an actual that we that.
Ralph: We've seen we generally get fairly consistent in terms of.
Ralph: Our which overall.
Ralph: We'll get you do get a.
Ralph: Often with these a central higher grade section surrounded by by lower grades.
Ralph: Understood and if I can just ask a follow up on on plant performance. It seems like the design allowances allowed for the plant to perform very well just by optimizing that flotation reagent mix and does it sound like there were.
Ralph: Any large changes to things like grinding or the or the police plant and just wondering a is that oh, the right character re characterization of how the plant was able to respond to some of these higher grades and the reconciliation.
Ralph: Yeah. So in terms of the grind no.
Ralph: Probably not.
Ralph: Growing sensitive.
Ralph: The grinding.
Ralph: On whom we need to.
Ralph:
Ralph: It is.
Ralph: And part was changed to the reagent mix and that's certainly been a contributing factor.
Ralph: Second thing is retention time.
Ralph: And it is.
Ralph: Early key, especially when you've got high higher grades and.
Ralph: Reduction is.
Ralph: Is is directly designed to increase our retention time in the flotation.
Ralph: The point I'd make is that we get.
Ralph: Our percentage of gravity recovery with higher grades with higher head grades.
Ralph: Yeah.
Justin Blase: Thanks, John that's very helpful and well done.
Ralph: Thank you.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: The next question comes from Andrew <unk> with BMO capital markets. Please go ahead.
Andrew: Hi, John Thanks for hosting the call congrats on the strong quarter again.
Any commentary on what.
Speaker Change: What you're seeing.
Speaker Change: Into Q2 in terms of this positive grade reconciliation as this partially or fully expected to extend into the current quarter.
Speaker Change: Yeah.
Heng: Thanks Heng.
Heng: We don't really expect to see any significant continuation all.
Heng: That puzzle reconciliation into the second quarter.
Heng: It was mainly during the first half or three quarters, all Q1 that we saw.
Heng: Okay.
Heng: And then coming back to this stage three.
Heng:
Heng: Just.
Heng: To give us a sense of the trend how did April performance development meters compared to the record for March was 95 four meters.
Heng:
Heng: April.
Heng: Would've been not quite as good as we saw in in March.
Heng:
Heng: Sure.
Heng: Couple of issues.
Heng: But I think overall world.
Heng: The.
Heng: Overall trend at Wuxi.
Heng: Yeah.
Heng: Okay.
Heng: And then.
Heng:
Heng: The pictures and the flyover of the of the construction of the physical plant looks like it's just.
Heng: Advancing very quickly.
Heng: And the apparel looking forward to seeing need the commissioning in June.
Heng: Is there any constraint in operating both Milt in terms of.
Heng: Or water or anything else that we should be aware of.
Heng: And specifically in my mind I'm thinking is there.
Heng: A period of time, where you can operate both at the same time.
Heng: And essentially find yourself at.
You know even without stage three operating at.
Heng: At full capacity.
Heng: Effectively at the the 1.2 million tons per year run rate did very quickly is that.
Heng: An option for you or is that the the reality of what's going to happen.
Heng: Look I think.
Heng: Would say that well, obviously, we can run both together.
Heng: We've set up to be able to do that.
Heng: The intent is very much to switch the the.
Heng: The old plant all once we're happy with.
Heng: Four months of the of the new plant not trying to run them for any length of time to to get additional throughput.
Heng: If you recall the.
Heng: <unk>.
Heng: The critical path to achieving $1 2 million tonnes per annum is always being the mining side in any event.
Heng: And actually.
Heng: Is not is not even on the critical path, it's more ramping up your underground production.
Heng: And the.
Speaker Change: I think when we talked about this earlier, but do you said you're comfortable with the trajectory or the progress on underground development.
Heng: So.
Heng: You're expecting to see.
Heng: Material progress in Q2, so that youll.
Either on the way or in a position to deliver.
Heng: So the kind of throughput that's required for stage three.
Heng: Yes, that's correct.
Heng: Well. Thank you have a kind of monopolize this for a while I'll, let someone else ask questions.
Sean: Thanks, Sean.
Speaker Change: Once again, if you have a question. Please press Star then one.
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: Well thanks operator.
John Lewis: Thanks, everyone for.
John Lewis: Participating attending.
Quarterly review.
John Lewis:
John Lewis: Citizen, Papua New Guinea, Suez with after 11 P M here.
John Lewis: But.
John Lewis: Ahead of time there.
John Lewis: We can say obviously, it's it's the best first quarter, we've ever had.
John Lewis: Second best quarterly.
Speaker Change: Who stopped.
Speaker Change: So what we see clearly very happy with that.
Speaker Change: Performance.
Speaker Change: The operation.
Speaker Change: In terms of stage three.
Speaker Change: Again three.
Speaker Change: Happy with the progress.
Speaker Change: As a as us and Canada noted there.
Speaker Change: Clearly see.
Speaker Change: It's very very significant progress in the AR and the drone fly through so.
Speaker Change: It's actually.
Speaker Change: We are getting to really exciting stage, where you can actually see the whole thing.
Speaker Change: Coming together.
Speaker Change: So.
Speaker Change: Hum.
Speaker Change: This is obviously a very exciting time for us.
Speaker Change: We'll have to see.
Speaker Change: The gold price.
Speaker Change: Where it is.
Speaker Change: That's obviously helped us greatly right to do records when you're getting.
Speaker Change: Higher gold prices as well.
Speaker Change: Yeah.
Speaker Change: So we look forward to the next quarter and in the report on the next quarter. So thanks. Thanks, everyone.
Speaker Change: Participating today.
Speaker Change: This concludes the question and answer session I would like to turn excuse me. This concludes today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Okay.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Sure.