Q1 2025 OceanaGold Corp Earnings Call
We are joined today by Jared bonds, President and Chief Executive Officer, Mary <unk>, Chief Financial Officer for the niche Malhotra, Chief Technical and projects Officer, and Peter Sharp, Chief operating Officer and Asia Pacific.
The presentation that we'll be referencing during the conference call is available through the webcast and on our website I.
Speaker Change: I would also like to remind everyone that our presentation will be followed by Q&A session I will be making forward looking statements. During the call. Please refer to the cautionary notes included in the presentation news release and MD&A as well as the risk factors set out in our annual information form.
Jared: All dollar amounts discussed in this conference call are in U S dollars I'll now turn the call over to Jared for opening remarks, Thank you Haley and good morning, everyone.
Jared: I'm really pleased with our strong start to the year with that first quarter production cost and Capex performance, putting us well on the way to delivering full year guidance.
Jared: Profit and free cash flow this quarter were both well ahead of market expectations based on solid production and good cost control.
Jared: It's fully unhedged gold producer, we also fully benefited from the increase in gold prices.
Jared: Most importantly, the first quarter was a safe quarter and continued focus on our key programs and lifting their time in the field has helped keep our people safe and we remain very focused on this.
Jared: I've been pit waste stripping programs at both high alumina Crazy progressing and are expected to deliver access to the next high grade ore phase of both the open pit mines later this year and this is what powers our production growth in the fourth quarter of this year and in 2026.
Jared: We delivered yet another quarter of strong free cash flow of almost $70 million supported by record quarterly average realized gold prices.
Jared: Our strong production and effective cost management allowed us to convert most of these high prices to the bottom line.
Jared: Our free cash flow per ounce of $585 for the first quarter was better than the average of our industry.
Jared: If it just wasn't the linchpin I'd just like to highlight that over the last 12 months, we have delivered $312 million of free cash flow, which represents a yield of around 16% on a average market cap over the same period.
We have a strong balance sheet with zero debt and we increased our cash holdings by nearly 20% by the end of the quarter.
Jared: During the quarter. We also made significant progress on our exciting organic growth opportunities at fast track application for the transformational why he north project in New Zealand was submitted and we continue to expect approval of it by the end of the year.
Jared: Additionally, we announced the new policy is discovery Tayo, which currently has three drill rigs further defining this attractive opportunity.
Jared: We look forward to sharing the results of all of our elevated exploration activity over the course of this year.
Jared: In line for a disciplined capital allocation framework, we were able to fund their growth projects maintain a strong balance sheet pay a dividend and continued share repurchases during the quarter.
Jared: Looking forward, we are well on track to meeting our 2025 full year guidance.
Jared: We continue to expect planned waste stripping at Highlander crates to deliver high grade ore in the fourth quarter, which is expected to be the strongest production quarter of the year, particularly in the crisis.
Jared: This is what underpins our unchanged guidance for the full year for each of production cost and Capex I'll now turn the call over to Myers to discuss our financial results in more detail.
Myers: Thank you Jerry and good morning, everyone.
Myers: We delivered a strong third quarter with significantly improved financial performance as compared with the first quarter of 2024.
Myers: We generated revenue of $360 million supported by our record average realized gold price of 28 $58 per ounce.
Myers: I'm really pleased to report that we had some notable achievements this quarter.
Myers: Including EBITDA of one and it's a $92 million.
Myers: And EBITDA margin of 53%.
And then operating cash flow per share of 28 states, which were all second highest on record.
Myers: This really highlights our keen focus on cost control and improving our margins.
Myers: We also leased to repeat our quarterly record of any species at 14 states.
Myers: Supported by a strong gold price and our disciplined approach to cost control, we generated $69 million of free cash flow.
Myers: And that is after investing in growth and exploration.
Myers: We have zero date and have increased our cash balance by 18% to $228 million.
Myers: With this robust financial position, we have flexibility to fund our growth and continue to return capital to our shareholders via our shaped buyback program.
Myers: Looking at our balance sheet from a broader perspective.
Myers: You can see we've improved our position significantly from a few years ago.
Myers: Systematically applying our strongest free cash flow to reduce update and strengthen our balance sheet.
In addition to maintaining our quarterly dividends. We also bought back $20 million worth of shares in the first quarter at an average price of $4 three seats Canadian fishy.
Myers: With $100 million of buybacks approved under the current program for 2020 farce.
Myers: Importantly, the rising gold price provides significant upside to our already strong free cash flow.
Myers: We have no gold price ages, and no golf pre buys with a free cash flow sensitivity the sensitivity of roughly $35 million per annum for every $100 change in the gold price.
Myers: And just to underscore this.
Myers: Current adult price is roughly $500 higher than the average price achieved in Q1.
Myers: So as Jerry had pointed out we are well positioned to achieve our annual guidance and to deliver attractive growth in 2026 and beyond.
Myers: I'll now pause that I bet, you build the nation to discuss outperformance.
Speaker Change: Thank you Morris and Hello, everyone.
Speaker Change: <unk> has had a strong start to the year with the gold production in the first quarter of nearly 52000 ounces assisted by the high grade ore from <unk> phase two which has now been completed.
Speaker Change: Language to being Follicular phase III is underway and is on track for a high grade ore contribution in the fourth quarter and beyond.
Speaker Change: First quarter, all in sustaining capital was $551 per ounce, which was below the annual guidance we have.
Speaker Change: Maintained our all in sustaining capital outlook for the year, but expect it to follow the production profile quarterly cadence decreasing by the fourth quarter.
Speaker Change: We are excited about the exploration opportunities ahead in so I believe we reported the discovery of the high grade mineralization at Ics and will continue to explore this and other promising targets.
Speaker Change: The remainder of 2025.
Speaker Change: They've been a faithful tradeoff works continues.
Speaker Change: For what would be defined by the results of the technical report expected to come out in the first half of 2026.
Speaker Change: Overall, we expect <unk> to continue to deliver strong performance with several catalysts ahead.
Speaker Change: I'll now turn the call over to Peter to discuss the ECR Asia Pacific operations.
Peter: Thank you Vanessa and good morning, everyone.
Peter: During the quarter. The DPA delivered increased gold production of approximately 21000 ounces and copper production of street sales and 400 tons.
Peter: Underground ore tons mined also increased versus the prior quarter and is expected to continue to increase over the year as we access lower levels of the mine and deliver the ongoing underground optimization work.
Peter: First quarter all in sustaining cost was strong at $1130 per ounce, which is below our annual guidance.
Peter: Capital investments are expected to increase in the second half of the year as we invest to support our growth with planned investment in underground pumping infrastructure and their underground optimization plan.
Peter: We are excited about our exploration opportunities both near the mine and also regionally with drilling planned multiple targets throughout the reminder of the east.
Peter: Looking ahead, we remain confident in the <unk> underground performance and long term value.
Peter: Our progress towards reaching our targeted underground mining rate of $2 5 million tonne per annum by end of 2026 remains on track and we will release an updated technical report in the first half of 2026 to outline this plan.
Peter: This quarter, but cries delivered gold production of 28000 ounces, which was a great result, even though impacted by a planned six die six day shutdown of the processing plant during the quarter as well as having lower open pit ore mined as per the mine schedule.
Peter: Additionally, lower grade ore was intentionally fade into the mill during the quarter to manage concentrate storage levels. During a planned major re brick of the autoclave, which only occurs once every four to five years.
Peter: This re brick was undertaken over 29 day period through the quarter and led to an incremental 5000 ounces remaining in circuit at the end of March which has now been subsequently sold.
Peter: As we move through the year, which we expect waste stripping at <unk> to be completed during the third quarter unlocking access to higher grade ore and driving a strong finish to the year for production and costs, both of which remain on track for full year guidance.
Peter: We remain excited about our potential opportunities to unlock value at <unk>, we are continuing to elevate and evaluate the many options we have to extend the mine life leveraging the value of its industry, leading low mining unit costs and expect to share more with the market in due course on this potential.
Peter: Why he delivered strong production with around 70000 ounces of gold in the quarter, maintaining the progress achieved with the underground and proven plan initiated in the second half of 2024.
Peter: Additionally, at cost remained well controlled and in line with airplane.
Peter: Now fast track application for the Warrior North project was submitted in the quarter and now than there has been deemed complete and.
Peter: And we expectation remains that we will be permitted by year end 2020 folks and we'll be able to start deploying construction towards Eric you're putting the underground in 2026.
Peter: As previously mentioned, we expect to spend $45 million on early works issue. So that the project is ready to start in earnest when we received that approval.
Peter: Also during the quarter, we announced further high grade mineralization at furniture program, which continues to demonstrate its upside potential.
Peter: Further exploration drilling at why he is focused on resource definition expansion of the Martha underground and expansion over the first European deposits.
Peter: With strong execution and exploration success, we remained very excited about why he has significant upside potential.
Jerry: I'll now turn the call back to Jerry.
Jerry: Thanks Peter.
Jerry: In summary, I was trying to go to have a very strong start to the year with production on track with guidance cost well controlled and the high gold prices contributing to our profitability and free cash flow generation.
Jerry: Reiterating what we said earlier, we have a strong debt free balance sheet and plenty of cash we have no gold hedges of prepays in place, allowing us to benefit from the higher gold prices stay that existed in the first quarter and.
Jerry: And we've been able to internally fund our growth projects and exploration declare a quarterly dividend add cash to the balance sheet and continue our share repurchases.
Jerry: Looking ahead, we expect 2025 to be another year of significant free cash flow generation and we remain focused on safely driving growth and shareholder value.
Jerry: Before I conclude I'd, just like to take the opportunity to note that jewelry now upcoming annual general and special meeting in June we will be seeking shareholder approval for a three to one share consolidation. The rationale is to comply with minimum training requirements of major U S exchange as the company explores the potential benefits of a dual listing which we believe.
Jerry: Lead to increase liquidity and enhance value for shareholders.
Jerry: I'll now return the call to the operator, who will open up the lines and are we happy to take any questions.
Jerry: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one and you touched on funding you up there are firms that your hand has been raised so the rest of the decline from the polling process. Please press the star followed by the two.
Jerry: We are using a speaker phone please lift the handset before pressing needs.
Jerry: One moment. Please for your first question.
Jerry: And your first question comes from.
Speaker Change: Is that sort of Scotiabank. Please go ahead.
Jerry: Yeah.
Jerry: Okay.
Jonathan: Thanks, Operator, Hi, Jonathan that was Gonna go team really congrats on a onto the team on a good quarter and a great start to the year.
Jonathan: A couple of questions from me number one starting off at Haile.
Jonathan: Hill had a good quarter, despite all the stripping youre doing a lot better.
Jonathan: In the stripping is still on track or or or maybe ahead of schedule and how should we be looking at Q2.
Jonathan: And also is the ore hardness at that better that you discovered at the end of 2025, creating any sort of delays or is that kind of now behind us.
Speaker Change: Yeah. Thanks, <unk>, so I'll take the first one and moving it can take the second of the Battle hardness.
Speaker Change: Yeah. The stripping is on track Oh base, we had a good access to all particularly at the ball, let go to tune that first period, but during the period and this quarter in the next quarter, we will be stripping phase III and as I've said in the call by the end.
Speaker Change: The end of the third start of the fourth quarter, we will have good access to phase III threshold, which as we've said powers that final quarter the whole production guide.
Speaker Change: Guidance for <unk>, generally and highest growth in 2026, which is really exciting bouguenais I'll leave you to answer that all hard in this question.
Eric: Thanks, Eric.
Speaker Change: Yes, the current ore hardness is as expected and has it been incorporated in our mine plan and the full year guidance.
Speaker Change: We've done a lot of work now in the past few months to address this including optimization of our blast patterns.
Speaker Change: To achieve a better fragmentation or lending lasers, and some optimized feed recipes.
Speaker Change: We're also looking at some secondary crushing options. If it is like what we saw needed at this point in time.
Speaker Change: We've also revised our planned mill throughput of about 25% 26, and it's reflected as toward hardness. We are expecting that it has actually already resulted in the 300 kilograms per annum, a few times, which is in a full year's items.
Speaker Change: Thanks for that.
Speaker Change: I wanted to move onto Mccray's.
Speaker Change: I guess, Peter you were talking about the completion of the break of the Arctic lab at the end of Q1, just any sort of color on how the auto club is ramping up going into Q2.
Speaker Change: Yes, yes.
Speaker Change: Yeah, the autoclave re brickman, well 29 days it was fully complete so we expect a full production no issue at all so I mean, the ramp up is really just a rebate. It does take a couple of days to get the temperature up before we can say the concentrate but that's all been done and it's running as per normal.
Speaker Change: Awesome. Thank you.
Speaker Change: And just moving onto W. P. M. You talked about you know the permit was submitted in March.
Speaker Change: And from what I understand the application was accepted just earlier this week.
Speaker Change: You know <unk>.
Speaker Change: Is the decision on the permit.
Speaker Change: This is on the permit has to be given on a certain timeline.
Speaker Change: What I'm just asking altogether.
Speaker Change: What's your confidence in receiving the permit by the end of 'twenty 'twenty five.
Speaker Change: Yeah. Thanks surveys I mean, the government has announced timetable.
Speaker Change: And the basis of that timetable and given our status as an approach that says as it has been outlined.
Speaker Change: Remainder of the view that you know subject to appeals, we will be permitted by the end of this year now the point worth making is I.
Speaker Change: You can process, where I need a full <unk>.
Speaker Change: Six one of the two projects.
Speaker Change: Projects that have been deemed complete and they're in the process for them such projects and what that means is.
Speaker Change: It will be one of the first going through it. So so again basis. The jewel that the government has outlined in what's eating into a cheese.
Speaker Change: We believe we should be approved by the end of the year. We've got an enormous amount of material that we submitted as part of the application. So there there is a lot to work through so the risk is that that that that material just being worked through it could take longer but yeah. We're mitigating the risk of any delays and if it wasn't delighting them.
Speaker Change: It will just slip into early 2026, we.
Speaker Change: We mitigated the risk of those delays by investing as we said about $45 million in the early stage works to kind of keep us on the critical path, where we're getting that that services range from the the existing plant to the portal. So that we can get power water and other stuff, where the so power activity there.
Speaker Change: We're ready and the portal for the decline and so forth. So.
Speaker Change: Yes.
Speaker Change: <unk>.
Speaker Change: <unk> risk of delay we consider it to be small it is possible, but we're doing our best to make sure. It has zero impact on the overall schedule of the project.
Speaker Change: Thanks for the color on that drug and and that's it for me guys and congrats again on a great quarter and thanks for taking my questions.
Speaker Change: Thank you for the questions.
Speaker Change: Thank you and just as a reminder, if you wish to ask a question. Please press star one.
Cosmos: Your next question comes from Cosmos <unk> from CIBC. Please go ahead.
Cosmos: Thanks, Hi, Jerry then gena and thanks for taking my questions.
Cosmos: Maybe following up on my body or basis questions on Haile.
Cosmos:
Cosmos: As you mentioned, our waste stripping Jared as you mentioned, it's on track, but I seem to remember at some point in time in the past we had talked about I think tons moved.
Cosmos: Hi planned in terms of sort of magnitude of 5 million tons. So I guess in your comment that you all caught up.
Cosmos: That's.
Cosmos: 5 million tons or have things changed could you maybe elaborate a little bit more on on the tonnage moved appeal.
Speaker Change: Yeah. Thanks Cosmos, thanks for the question.
Speaker Change: The delay that you referred to occurred last year, that's when we fell behind we would have slipped a quarter.
Speaker Change: But but the stripping that we have the campaign we have in respect to 2025 is on track and our guidance reflects the stripping that we intend to do this year. So the slippage that your question refers to occurred last year.
Speaker Change: Okay.
Speaker Change: So.
Speaker Change: So that's in the past I think you will catch up on that or do we need to catch up on those that slippage sure or I got that right.
Speaker Change: No no.
Speaker Change: Not at all I meant was that we had to use stockpiles for a quarter longer than we had planned.
Speaker Change: And that's what instead of being yeah. If I go back two years ago, we thought we'd be into phase III clean all by the middle of this year now it's towards the end of the third quarter. This year that was the slippage, but it's been reflected in guidance for this year already.
Speaker Change: I gotcha.
Speaker Change: Great.
And then maybe moving on I see at Haile once again could you remind us in terms of you know what.
Speaker Change: Going through the mill at Haile as you transition from left that are phase two into Ledbetter phase III, specifically in Q2, and Q3 is it really going to be stockpiled ore plus underground war, that's feeding into the mill could you maybe remind me once again of what's being said.
Speaker Change: 12 truthful.
Speaker Change: Yeah sure I mean.
Speaker Change: In short, yes underground ore stockpile and progressively.
Speaker Change: Uh huh.
Anything that comes out of the open pit, but bouguenais do you want to give any color on the old feed mix.
Speaker Change: No I think you're right that's exactly what we'll be feeding as well so some underground fresh.
Speaker Change: Fresh Stockhorse followed followed by some.
Speaker Change: Low grade stockpiles and some of our material from Liberty to Nick we have stockpiled over the last quarter as well. So it's a combination of all those three in the next two quarters.
Speaker Change: What's the end of the quarter three we start to then get access to the Ledbetter rewards official and that's what we'll then get fed through.
Speaker Change: Wonderful.
Speaker Change: Great and then.
Speaker Change: I noticed that the underground grade was 3.74 grams per tonne in the quarter lower than last quarter, which is north of five gram per tonne.
Speaker Change: You do mention that or tonnage.
Speaker Change: <unk> will increase.
Speaker Change: I don't seem to quite call it a comment on grade.
Speaker Change: In the MD&A, because you may be comment on that in terms of the underground grade.
Speaker Change: Yes, the underground grades.
Speaker Change: The underground grades are in line with our expectation and as you can imagine as new Stopes comes online.
Speaker Change: And as we basically getting into deeper into the ore body is it will always be variable as well so.
Speaker Change: It's in line with or without mine plan mine schedule that has been put together as well.
Speaker Change: Some of those high grade stopes that we basically saw was initial and start effect that that had a piece as well and as we have now been getting deeper into the ore body as well some of them will come online offline.
Speaker Change: Kind of a thesis so yes, no. We have we are on track with our rates as expected.
Speaker Change: Oh great.
Speaker Change: And maybe bigger picture.
Speaker Change: As <unk> disclosed and congratulations on a very good cost number in Q1 17 96.
Speaker Change: But could you maybe talk about that in the context of your full year guidance clearly that's below your 1900 to 2050 announced for the year could you maybe talk about what in that context, our full year guidance and then maybe touch on on Capex as well.
Speaker Change: As you mentioned.
Speaker Change: Q1 was 97 seven.
Speaker Change: In terms of Capex.
Speaker Change: Less than 25% over $485 million to $530 million budget.
Speaker Change: Budgeted for the full year.
Speaker Change: Could you talk about that increasing but could you maybe comment on that.
Speaker Change: Kind of velocity of that increased what we can expect in Q2 and Q3.
Speaker Change: Yeah. Thanks, <unk>. So I mean look as we covered in the press, we've got more stripping to do with Highland Mccray's, Peter mentioned that we've got.
Speaker Change: Some planned capex at the <unk> as it relates to them.
Speaker Change: The underground activity, there and and as we have.
Speaker Change: I have more ore from.
Speaker Change: From stockpiles feeding the mills at Ireland particular.
Speaker Change: Production also goes down so you relative to the first quarter. So you've got a strong first quarter strong fourth quarter bit of a dip in production that also in combination with that high level of capex in the period than what exists in the first quarter is why we hold the guidance in the range that we currently do now obviously is as you can.
Speaker Change: We're going to strive to get the.
Speaker Change: Towards the low end of that cost strange.
Jerry: Yeah, So Jerry I guess to ask.
Jerry: More directly the 17 96 was it better than what your internal budget.
Jerry: Okay.
Jerry: Just could you ask the question getting calls you just broke up at the end yes.
17, 96 was it better than what your internal budgets dictate.
Jerry: Dictate it.
Jerry: It was it was powered by a very strong performance at Haile and yes. We were we were pleased with the outcome relative to expectations.
Jerry: Got it great.
Speaker Change: Great, Thanks, Gerry and team and thanks for answering all my questions. Thank you <unk> appreciate it.
Speaker Change: Thank you.
Speaker Change: Your final question comes from Don from National Bank Financial. Please go ahead.
Don: Thank you operator, and good morning team just joining late.
Speaker Change: Previous analysts no doubt awesome excellent questions apologize, if I'm repeating anything but the first question.
Speaker Change: Can you provide an update on the flooding issues and the lower levels of <unk> are they mostly resolved now.
Speaker Change: Peter do you want that.
Peter: Yeah, and I'll tell you there thanks, Thanks Don.
Speaker Change: Does it still working.
Speaker Change: We expect.
Speaker Change: Yes.
Speaker Change: Sorry, it's early second half of them will have done the work.
Speaker Change: But theres a little bit more work to go.
Speaker Change: We've got some equipment this.
Speaker Change: Being delivered underground infrastructure.
Speaker Change: The structure, that's planned to be installed in the second quarter, but.
Speaker Change: But we expect by early in the second half of the year that will be through that.
Speaker Change: That's one way.
Speaker Change: First two quarters.
Speaker Change: We'll be more of a ramp up in strong second half of the year.
Speaker Change: Okay. Good to hear and then just shifting to tariffs are you expecting any impacts maybe potential labor pressures at Haile.
Speaker Change: Would there be any potential change to guidance.
Speaker Change: Given that.
Speaker Change: Guidance preceded the tariff announcements.
Speaker Change: No not really I mean do we got this question in the first quarter I mean half of our cost set high or low labor related and we don't see.
Speaker Change: At the moment I impact of tariffs on labor.
Speaker Change: Probably makes them potentially easier to retain and attract people and.
Speaker Change: In our industry.
Speaker Change: Perhaps because you know gold prices are good and the business is performing very well so so in short no.
Speaker Change: Okay. Thank you for that and then finally on capital allocation, you've got a sizable and CIB program planned.
Speaker Change: Do you expect continued repurchases similar to the pace in Q1 over the rest of the year and do you expect to continue your favorite Dan CIB over dividends.
Speaker Change: Yes, and yes.
Speaker Change: So I mean, we said at the start of the year in February we said, we'd do $100 million, we did 20 in the first quarter.
Speaker Change: We continue to see.
Speaker Change: Oh viewed that as she is undeveloped valued relative to peers and it sets niv.
Speaker Change: And our shareholders have indicated a strong preference for buybacks over dividends and just a reminder, we actually doubled their dividend for this year. So we are paying higher dividends. So we think we've got the nice balance of increase or doubling of dividends plus.
Speaker Change: I value accretive share buyback program and as Mary said, we bought back shares in the period for an average price of $4 Canadian ship, which is you know give me a great return.
Speaker Change: To date.
Speaker Change: Those purchases.
Speaker Change: So the patients that we did last year, which I think wounds in the $3 a share.
Speaker Change: Okay, great. Thank you that's helpful and well that's all for me. So good luck with the Q2.
John: Again, thank you John Thank you.
Speaker Change: Thank you.
Speaker Change: No further questions on the phone lines at this time I will turn the call back over here. Please.
Speaker Change: Please continue.
Speaker Change: Yes. Thank you we did have a few questions from the webcast that may be worth discussing.
Speaker Change: Can you give some color on the exploration at each of the sites.
Speaker Change: Oh, Wow, well, let me firstly.
Speaker Change: Gloria we're spending more dollars at each site than we have done in the past. So you know given the prostate team neither of the land, we have and the target <unk> six.
Speaker Change: And our capacity to so apply money to exploration, we're excited about our exploration programs at each site, but you know on a buy side basis at Haile we.
Speaker Change: <unk> announced the discovery of policies that will continue to drill it we're still excited about what exists horseshoe underground we're drilling it led better underground.
Speaker Change: Ledbetter generally we're drilling it to help inform the study as to whether we go underground or open pit. There. So we're really excited about the potential at Haile and <unk>. We are open at depth.
Speaker Change: We are drilling.
Speaker Change: <unk> mind true blue with scoping, the Fox, we have <unk> as a more regional targets. So we've got lots of prospective ground in and around the GPO that we're active in Mccray's I mean, what a fabulous asset 75 years old this year, let's say five years young I should say and we've got a large land package there.
Speaker Change: And we're putting more money into it.
Speaker Change: Because that that Optionality that is driving me crazy is fabulous. So we're looking to define it and then obviously it why he and fair care upon that why he underground as Peter said, we're drilling Masa, we were looking to add both answers to its resource and convert its resource to a reserve through drilling at Martha underground.
Speaker Change: And then a very clear upon that probably one of the most exciting exploration prospects globally, you know industry.
Speaker Change: It's high grade it's large presently we think it can be larger which is why we are putting a lot of money into it. So so we're really excited about what the team delivered in exploration last year, we're equally excited about what it might be able to do this year.
Speaker Change: Thank you and following on from your comments on the case can you talk a little bit more about the mine life extension options with the current gold price.
Speaker Change: Sure.
Speaker Change: Reserve life at Mccray's is around three years at a reserve price.
Speaker Change: Of $1700 an ounce.
Speaker Change: Obviously, when gold is $3400 an ounce that gives us tremendous.
Speaker Change: Optionality.
Speaker Change: To convert resources, which are booked at $1900 an ounce to put those into the mine plan. That's an extra I think 3 million ounces or so so so we see and.
Speaker Change: And we are doing plans at a price much higher than our reserve price is much higher than now.
Speaker Change: Resource price, given where the gold prices up while still leaving plenty of buffer.
Speaker Change: To make money.
Speaker Change: Money from that activity.
Speaker Change: Way hardly confident off but you know you get to do the work and you will see that reflected the night Tech study.
Speaker Change: We released early next year that will extend the mine life from a crisis.
Speaker Change: Thank you.
And shifting gears would you expect shareholder returns to increase the gold price being roughly $500 per ounce higher than in Q1.
Speaker Change: Oh look I mean.
Speaker Change: Surely a gold company that is unhedged that gets the benefit of higher prices all other things being equal if we can hold as costs, which we believe we've done well.
Speaker Change: Should increasing value.
Speaker Change: Uh huh.
Speaker Change: Well I think Warren Buffett said, you really know what is it a weighing machine and voting machine in time, the weight of money and as I mentioned in my presentation, we've had a free cash flow yield.
Speaker Change: That's after tax money, that's available to the providers of capital of 16%.
Speaker Change: In the last 12 months rolling.
Speaker Change: That's fantastic yield and wait we believe relative to other gold companies that.
Speaker Change: We are relatively undervalued and we're hoping that with continued performance and results thoughts today that should translate into higher prices.
Speaker Change: That's for the market to decide.
Speaker Change: Thank you and last question from the webcast.
Speaker Change: We have somebody asking a little bit more color on the on the motivation for the U S listing.
Speaker Change: Well also look a lot of our PS sorry, unlocking a lot of that piece, we're not on a U S exchange.
Speaker Change: And the U S capital markets are large.
Speaker Change: And we have had some feedback from some shareholders. It I'd love sorry, some prospective shareholders that they'd love to invest.
Speaker Change: As shown on the Gulf, but because of the mandates are they required to stay on a U S exchange Prime primary listings and so we believe that if we were to get on to a U S exchange lock out piece, we would open up a wider pool of capital that would be interested in buying Oceania Golden if that was to happen, we think that extra bonds.
Speaker Change: Court should should help us realize the full value of the company.
Speaker Change: That's it from the webcast over to you operator, well. Thanks Ali I think I think I'll do this bit which is to say that that's the end of the call I appreciate everyone dialing listening and a replay will be available on our website, let's say on behalf of everyone at Oceana Gold I. Appreciate you joining us and wish you a pleasant rest of the <unk>.
Speaker Change: They buy.
Speaker Change: Thank you ladies and gentlemen, this does conclude your conference call for today, we thank you very much for your participation and ask the please disconnect have a great day.