Q1 2025 Torex Gold Resources Inc Earnings Call
Thank you for standing by. This is the conference operator. Thank you.
Welcome to Torex Gold's first quarter 2025 results conference call and webcast. As a reminder, all participants are in listen only mode, and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions. To join the question, Q, you may press star than wanting a telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero.
Speaker Change: How now like to turn our cops over to Daniel Rollins? Senior Vice President, Corporate Development, and Investor Relations. Please go ahead.
Dan Rollins: Thank you, operator, and good morning everyone. I'll be happy to the Torex team. Welcome to our Q1 2025 conference call.
Dan Rollins: Before we begin, I wish to inform listeners that a presentation accompanying today's conference call can be found under the Investor Section of our website at www.torexgold.com
and Jody Kuzenko.
Dan Rollins: I'd also like to note that certain statements to be made today by the management team may contain forward-looking information. As such, please refer to the detailed cautionary notes on page two of today's presentation, as well as those included in the Q1 2025 MDNA.
Speaker Change: On the call today, we have Jody Kuzenko, President and CEO , and Dave Stefanuto, Executive Vice President Technical Services and Capital Projects, who are both in Mexico City having just hosted the board on a site visit to Morellas while I understand our CFOs here with us in Toronto.
Speaker Change: Following the presentation, Jody Andrew and Dave will be available for the question and answer period.
Speaker Change: This conference call is being webcast and will be available for replay on our website.
Speaker Change: Last night's press release in the company Financial Statements and the MDNA are posted on our website, and I'll also be filed on Cedar Plus.
Speaker Change: All mountain today's call are US dollars unless otherwise stated. I'll now turn the call of the Jody.
Jody Kuzenko: Thank you, Dan. Good morning to all of the lines from Mexico City here. The start 2025 has been a period of significant milestone to change the Torex. Some of which are this to here on slide 4. Thank you very much.
Jody Kuzenko: Burke, as you will have seen last week, we published our final quarterly update on the Medialoon of Projects.
Speaker Change: Construction is essentially concluded. I'll let Dave speak in more detail on the items remaining, but the two largest are completion and commission of the pace plan and the tie-in of our upgraded power and structure to the national grid. Both of these are tracking well and expect to be completed over the next few weeks.
Second, and importantly, the time period is behind us.
Speaker Change: From Mid-Seduary to Mid-March, you successfully completed the sector's size of the process plan.
Speaker Change: All-in, there were 83 separate tie-ins and 136 separate systems to commission. This required our entire team and more than 1,000 contractors to complete. This was done not only on schedule and within budget, but more importantly, without a single safety incident.
Speaker Change: Third, post-the-time period we produced our first concentrates, and initial shipments left the site in early April .
Speaker Change: In parallel with construction, we maintain the major focus on people with our workforce transition plan, which is now also substantially complete.
Speaker Change: All in, we transitioned or recruited nearly 500 employees to operate in Medelluna Underground, or support our new surface operations, while maintaining our usual high level of commitment to recruitment from our local community.
Speaker Change: Then, to wrap all of this up, we achieved commercial production at Media Luna on schedule on April 26th.
Speaker Change: A ramp up is going according to plan with the mine and mill both operating above the required thresholds to make this declaration. [inaudible]
Speaker Change: And finally, in quarter one, we also released our year-end mineral reserve and resource update in March, delivering 7% reserve growth year-over-year.
Speaker Change: During the flight five, I wanted to briefly provide an update on the progress we've made across each of our six strategic pillars.
Speaker Change: On our first pillar, I just touched on the highlights from Medelluna, so make some comments here on EPO.
Speaker Change: The Feud Ability Study is progressing well, and we remain on track to commence underground development in quarter two, even ahead of the Feud Ability Study being finalized.
Speaker Change: On Optimized Morellos, production and cost, we're now focused on completing and commissioning the paste plant, so we can achieve those steady state mining rates of $75,000 to $100,000 per day in Medialinuna by mid-2026.
Speaker Change: In parallel, we have a number of initiatives in play on what I call Medi-Aluna 2.0, how to operate the mind, safer, faster, and cheaper.
Speaker Change: As many of them against economies of scale and the teams get more and more comfortable with their new operation, I expect we'll see a meaningful inclusiveness in our cost structure over the coming quarter.
Speaker Change: On Grow It Reserves and Resources, we released our year-end reserve and resource updates in the quarter. I'll touch more on the specific highlights on that before the end of call.
Speaker Change: On discipline growth and capital allocation, we continue to draw on our credit facility as planned during quarter one, given it was our highest tax in the Royal Containment Quarter of the year, coupled with our lowest production quarter.
Andrew, speak more on this shortly.
Speaker Change: In addition, with our metting in the progress, progressing the plan, the expected the end of the position to outline are inaugural return of capital policy to shareholders later this year.
Speaker Change: On retaining the track talent, I want to take this time to acknowledge our human resources, safety and operational teams for successfully coordinating and training all of the employees that changed roles were on boarded during our workforce transition program. This was no more. Thank you very much.
Speaker Change: And finally, on responsible mining, I'd like to take a bit of extensive time here to talk about safety.
Speaker Change: Given the events of December . I want to share some of the collective measures we've taken since the conclusion of our internal investigation into the fatal carbon dioxide exposure that happened last year.
Speaker Change: We've embarked on what we're calling a next level safety program to ensure that we reestablish ourselves as industry leaders in safety and that our operations can return to our prior fatality free status.
The program includes three specific work streams. First,
Speaker Change: Refreshing the systemic work relating to fatal risk standards and critical controls, with a view to increasing awareness for all of our workers and contractors on triggers that could result in a fatal event and the controls that must be in place prior to starting work and well-worked as being undertaken.
Speaker Change: Second, we've commissioned a fresh eye assessment where world experts will be at site of Morales reviewing conditions, systems, and our culture in order to revive our management team and our board of directors about further opportunities for improvements on the continued journey to become one of the safest operations in the industry.
Speaker Change: And finally, we plan to undertake a series of in-depth dialogue sessions with all employees across our site and the corporate office where risk appetites openly discussed, and personal commitments that are publicly made about risk-taking behavior.
Speaker Change: Our work will never stop when it comes to ensuring that our employees and contractors will turn home safely after each shift, and we believe that taking these measures will be a great first step in getting us back on track to what was an industry-leading safety record.
Speaker Change: Moving over slide six, I'll touch on some operational and financial highlights from the quarter on production. As expected, it was lower this quarter than the four we tie in at the process and plan and the ramp up post to be start. [inaudible]
Speaker Change: All in sustaining costs were much better than we originally anticipated, as initial sales for Medi-Aluna commenced in early April versus the original plan of late March.
Speaker Change: It just took us an extra couple of weeks to build up the required inventory of concentrate to get sales going. Because of that, higher costs or from the commissioning phase, from the medium and a mine will now be recognized in quarter two in conjunction with those sales.
Speaker Change: And finally, on balance sheet, we continue to draw on our debt facilities during the Puerto
Speaker Change: Now, standing in the low production, the median spend and the significant annual tax outflows, we ended the quarter with nearly $200 million in available liquidity, and $17 million of that sitting in cash.
Speaker Change: Flight 7 illustrates how our operations performed with production on the top left and ore processed on the top right, both of these graphs reflect the middle time period.
Speaker Change: The bottom left shows our grave profile for the quarters, which was lower than typical. There's nothing to do with the media Luna. It's because the open kits were winding down. This parade doesn't yet reflect the benefit of the meaningful volumes that we see coming of higher-grade media than it was.
Speaker Change: Mining rates at ELG Underground, shown here on the bottom right, were light, as we continue to recover from the events of December , and our contractor has put the equipment available to the issue.
Speaker Change: I'm pleased to see you rate to pick up in late March, early April , and we're expecting to remain at our targeted 2800 returns today for the remainder of the year.
Speaker Change: Pouching on guidance on slide 8, with the tie-ins now behind the production as expected to pick up during quarter two, as Medellina steadily ramps up and recoveries achieve steady state level during the fourth.
Speaker Change: We're expecting production levels to increase modestly again during quarter-three and remain relatively stable since they're on active.
Speaker Change: All the same talks were at 14.05 per ounce for quarter one, and they expected to peak above the upper end of the guided range in quarter two, so the reasons I've already described, then we expected to decline in the second half of the year as many of them in the ramped up, economies of scale are achieved, and production increases.
Speaker Change: We continue to expect to exit this year close to the lower end of the guided range for ASIC.
Speaker Change: On Capitol, quarter one marks the final quarter of meaningful investment in Medellina as commercial production has now been declared.
Speaker Change: The Remating Guidance for Non-Spinning CapEX reflects spend on the EPO Feasibility Study, which is currently underway. Initial CapEX to be spent on EPO development, which will commence here in court too.
Speaker Change: and a modest level of non-sustaining capex for medial luna while we complete the Commission of the PACE Plan and the PACE Distribution System.
Speaker Change: And on the note of Capite, I'll pop it over, Andrew, to speak to our financial and more details.
Hey, thank you, Jody, and good morning, everyone.
Speaker Change: So I'll start my overview on slide 10 and so it's following along with the presentation. And this summarises our financial performance through the quarter. Thank you very much.
Speaker Change: This, of course, was an atypical quarter for us. Our financial results were impacted by both the four week medialuna plant tie-in period and the fact that sales from the early medialuna and higher cost production did not commence until early April . [inaudible]
Speaker Change: And so these sales did not impact our Q1 financial results, as it had initially been planned.
Speaker Change: As a result, our first quarter orange sustaining costs were better than expected, of 1405 with an all-in sustaining cost margin of 50% and that's shown on the top left of the charter.
Jody Kuzenko: As Jody mentioned, our rolling sustaining costs are now expected to peak in the second quarter with the sales of the early higher cost media in a production before decreasing through the second half of the year.
Jody Kuzenko: To flag, I'm sure is well understood. One area we are seeing cost-pressure to date is from the higher gold price compared to the assumed $2500 an ounce in our guidance.
Jody Kuzenko: Although a higher gold price does expand margins, it also increases our royalty and profit showing accruals as well as reduces the denominator in the gold equivalent calculation, thus increasing costs.
Jody Kuzenko: Just to give you a sensitivity here, for each $100 an ounce, increase in the gold price with other commodity prices remaining flat, it increases our all-in-sustaining costs by about $25 an ounce from each of these factors combined.
Just continuing on the financial highlights on this slide briefly.
Jody Kuzenko: You can see the lower adjuster the bit dial, which is shown in the top right chart, this really just reflects the four-week downtime at the mill.
Jody Kuzenko: In the bottom left child, you can see the spending on medium unit decreased substantially during the quarter.
Jody Kuzenko: And Emilio and the CapEx have expected to almost entirely come off now in Q2, aside from some residual CapEx for the paste plants was Jody noted.
Jody Kuzenko: And finally, just looking at the bottom right chart here, you can see our free cash flow during a quarter, which reflects maybe in a cap expend, but most significantly the payment to the annual taxes and royalties, with Q1 always being our seasonally highest quarter of tax we're going to be outflows.
Jody Kuzenko: I'm shutting down to slide 11. You can see a summary of our unit cost here, and I'll just make a few comments on some of the movements. Starting first with mining costs. The open pit cost here were significantly higher than 2024. And this really just reflects the lower predictivities as mining in our last open pit, which is the Elements third winds down later this quarter. Thank you.
Jody Kuzenko: Underground Costa ELG, on the ground however remain consistent with last year's levels.
Jody Kuzenko: On processing, the low-unit costs really reflect the downtime in the mill as well as the influence of the weekend Mexican paysoat here on the quarter relative to levels experience throughout
Jody Kuzenko: Thanks for the support costs, we're also on the quarter of the higher proportion of these costs were capitalized during the melting period, as well as again the impact of the week to pay so.
Jody Kuzenko: And then on the Mexican profit showing payment that is tracking lower year today compared to last year, just given the lower Q1 production, which is about half of our quarterly run rate. Noting this payment is tied to our taxable profit in Mexico.
Jody Kuzenko: Finally, on this slide, just to note in these cost trends, we're not seeing any noteworthy pressure from terrorists at this point, but we are continuing to monitor potential impacts in our supply chain and develop mitigations in the event that we do start to see pressure there.
Jody Kuzenko: Turning next to slide of 12, you can see here that we closed the quarter with $107 million in cash and drew down on our credit facility in order to maintain the target of holding that minimum $100 million cash.
Jody Kuzenko: $102 million of taxes paid in the quarter as well as the $124 million or the capital expenditure and our lowest production quarter of the year resulted in the planned drawdown of about $113 billion in like that facility during the quarter.
Jody Kuzenko: With production ramping up at media Luna, we expect will repay drawn about quickly through the second half of 2025.
Jody Kuzenko: <unk> is well supported by the backdrop of these retrofit on prices.
Jody Kuzenko: As mentioned as well as capital expenditure is expected to materially decline going forward as spending on media Luna winds down and working capital related project vendor payments and capitalized inventory builds and with the declaration of commercial production effective may 1st.
Jody Kuzenko: Looking forward there are a couple of elements I wanted to touch on.
Jody Kuzenko: Briefly first as the annual profit sharing payment that we made to me if I forget.
Jody Kuzenko: This year the payments is estimated to be about $30 million and will be recognized in operating cash flow in the second quarter.
Jody Kuzenko: Additionally, with the filing of our annual taxes and the strong gold price environment. We saw through the course of 'twenty 'twenty four or installment rates, which are resets every time, we file our tax return that installment rate will increase for the balance of this year.
Jody Kuzenko: Anticipate for the monthly payments will average about $10 million a month through the balance of 2025.
Jody Kuzenko: With the seasonal cash outflows behind Us post Q2, and a material decline in capital spending at media Luna, we remain very well positioned to return to positive free cash flow mid this year.
Jody Kuzenko: Next turning to our liquidity, which you can see here on slide 13, our available liquidity.
Jody Kuzenko: As of the end of March was 198 million with $107 million in cash and $91 million available to us.
Jody Kuzenko: Our credit facility.
Jody Kuzenko: Okay.
Jody Kuzenko: As a reminder, we continue to have about $150 million mm $150 million accordion feature on our credit facility, which does provide us some additional flexibility to deliver on our strategic objectives as required.
Jody Kuzenko: Our net debt position at the end of the quarter was 175 million of which $87 million related to lease obligations and so excluding those lease obligations. Our net debt was approximately $19 million.
Jody Kuzenko: Completely in line with our plan from the guidance we provided on previous calls.
Jody Kuzenko: Finally, I'll just touch briefly on our hedge book, which you can see summarized on slide 14.
Jody Kuzenko: Just to note here, we did not add any hedges to our book since our year end update we continue to have a mixture of all at least on the peso side, a mixture of zero cost collars and forward contracts in place to protect our peso denominated operating costs.
Jody Kuzenko: This provides protection for about 60% of all peso exposure through the course of the year.
Jody Kuzenko: As a reminder, all of our gold forward contracts expired in 2024.
Jody Kuzenko: Don't have plans to put any further forwards in place.
Jody Kuzenko: We do have as summarized on this slide does some goalposts in place currently in this office the downside protection, while offering full upside exposure to a rising gold price.
Jody Kuzenko: With that ill hand, the call over to Dave.
Speaker Change: Thank you Andrew and good morning, everyone I'll start with an update on the project progress here on Slide 16 last week, we released our final quarter of the immediate need to update an LTE that we had achieved commercial production.
Speaker Change: It means that construction is substantially complete mine and mill throughput have averaged over 40 and 60% of the design rates for 30 days respectively.
Speaker Change: <unk> is available and metallurgical recoveries have averaged at least 60% of the design recovery levels.
Speaker Change: Performance of the new flotation circuits and upgraded processing plant is improving each day and we're well on track to deliver our nine week ramp up objective is.
Jody Kuzenko: As Jody mentioned overall project progress sat at 98% complete with commissioning of the paste plant in the peace distribution system as well as the connection of our upgraded power infrastructure to the national grid, both expected to be completed in the coming weeks.
Jody Kuzenko: And the underground we continue to remain ahead of plan on definition drilling with 50 160 stores planned to be mined in 2025 drilled off 40% from 2026 and 2014 from 2027.
Jody Kuzenko: Development rates also continued to track ahead of plan with over 300 meters completed in March compared to a budget of 200 meters teams are focused on ramping up to a new design mining rate of 7500 tonnes per day by mid 2020.
Jody Kuzenko: Six months ahead of schedule.
Jody Kuzenko: <unk> plant commissioning expected to be completed this quarter, we remain on target to deliver on this commitment.
Jody Kuzenko: And finally, our workforce transition is substantially complete another significant undertaking.
Jody Kuzenko: Transitioned approximately 200 employees from our open pit operations train them to operate underground and have them deployed in certain media Luna underground operation.
Jody Kuzenko: Also higher approximately 160, new employees to work at media Luna and transferred or recruited approximately 110, new employees to support our service operations.
Jody Kuzenko: Turning to slide 17, we show some recent highlights for media Luna.
Jody Kuzenko: Concentrate shipments commenced the first week of April and the talk about picture you can see the concentrate loaded into a truck in our loading Bay.
Jody Kuzenko: The bottom left picture shows progress of the peace plant with a filter presses were assembled during the quarter and water testing commenced on the piece split thickness.
Jody Kuzenko: The middle picture shows all being transported out of the media Luna by using the wild conveyor and then hold to the processing plant.
Jody Kuzenko: At the right hand picture it shows our copper and iron sulphide flotation circuits in operation.
Speaker Change: I want to take this moment to personally congratulate all of our employees contractors suppliers Oems and all other stakeholders, who have had a hand in assisting us with delivery in this project within target budget and schedule.
Speaker Change: Thousands of people working together to accomplish what we have immediate Luna and I'm proud of the work that was undertaken on this project with that I'll turn it back over to Jodi.
Jodi: Thanks, Dave.
Jason: Jason Congratulations and well certainly have those thousands of people could have done the work they've done.
Jodi: Yes.
Speaker Change: Couldn't have achieved the success we achieved.
Jodi: Just to that.
Speaker Change: Well operator to open up the call for questions I wanted to touch on the news that we put out this quarter relating to our strategic objective to grow reserves and resources.
Jodi: Starting here with a reserve update on slide 19.
Jodi: I'm pleased to say that we grew overall reserve by 7% year over year, primarily reflecting the work done to bring <unk> into the mine plan, but also replacing depletion that EOG underground.
Jodi: This happened despite it despite a slower than expected start for drilling season, as a result of bringing in a new drilling contractor and associated time with the mobe and rebound realizations.
Jodi: I firmly believe we'll continue continue to replace reserves at EOG underground year after year pushing out its mine life well beyond the current reserve estimate of 2021.
Jodi: Slide 20 depicts our resource growth over 2023 wasn't quite as much as the reserve growth given that you prioritized infill drilling, but the contract or change out it's still a 3% increase in M&A resources fire or Mam.
Jodi: They contributed here with definition drilling up many of them.
Jodi: We're looking to ramp up our exploration program. This year with 125000 meters of drilling planned and a full year budget of $45 million.
Jodi: In 2025 program represents almost a 50% increase in spend and close to double the meters drilled in 2020 for our exploration team going to be very busy.
Jodi: While a large portion of the budget will be targeted towards expanding resources within EOG is embedded within a cluster a portion of the budget for the first time in many many years will be focused on the needs of all three of them as we look to make the next big discovery on our 29000 hectare problem.
Jodi: Some of the new targets being drilled in 2025 include at scale.
Jodi: Rental and protocol.
Jodi: Slide 21 here summarizes the results we released in February from the 'twenty 'twenty four drilling program at <unk> West.
Jodi: And my favorite Excitingly. Some initial drill results testing, we conducted a medically and eat.
Jodi: The drill testing we conducted there happened after we successfully negotiated a land access agreement with the local as you know in late 2024.
Jodi: The results from that are you going to west continue to be promising with multiple high grade intercepts returned including almost 13 grams per ton gold equivalent over 20 metre and another over 22 grams per ton gold equivalent over 13 years.
Jodi: Drilling will continue there this year with 10000 meters planned in our goal of declaring an initial resource there with our year end update in March of 2026.
Speaker Change: As many of you in the east.
Speaker Change: Very close proximity to many of them in the main ore body strong results for the term of just over 3300 meter drill up in tobacco.
Speaker Change: Of important note the Hyatt Cocker signature, we're seeing there with multiple intercepts returning grades in excess of 2%, including one call, which returned a copper grade of four 5% and the gold grade of nearly 19 grams per tonne.
Speaker Change: Over 80 meters.
Speaker Change: I'm very excited to see what the 10000 meter drill program. We have planned out for this year what would check.
Speaker Change: Well all in by way of wrap them closing here, it's been quite the major milestone quarter for us across the board I would even use the word pivotal to describe it.
Speaker Change: Well, we achieved here many of them, they're not all came together within a span of weeks, but.
Speaker Change: Really it's been three years of hard work and heavy investment in making.
Speaker Change: I want to take this opportunity if I close the call to thank all of our stakeholders.
Speaker Change: Their trust and support as we delivered on this massive undertaking this marks the end of our capital intensive period and the start of our transition to being a coal and copper producer with all like that's on a pivot back with strong free cash flow in the quarter.
Speaker Change: Awesome said to my team with cash all things are possible and we're very much looking forward to the next phases of opportunity to continue to deliver superior value to our shareholders.
Speaker Change: And with that operator, I'll open the call for questions.
Speaker Change: We will now begin the question and answer session.
Speaker Change: 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're using a speakerphone please pick up your handset before pressing any Keith.
Speaker Change: To withdraw your question. Please press Star then two.
Speaker Change: We will pause momentarily as momentarily as callers join the queue.
Cosmos Shue: Our first question will come from Cosmos Shue with T. I D. C. You May now go ahead.
Speaker Change: Thanks.
Cosmos Shue: Thanks, Jody and Dave and Dan and congratulations on achieving commercial production on media Luna.
Speaker Change: Maybe my first question is on your balance sheet here as you mentioned.
Speaker Change: Q1 is usually heavier in terms of cash outflows, so you've had to draw $130 million on your debt facility.
Speaker Change: Could you remind us of your sort of optimal capital structure.
Speaker Change: Jodi will you try to pay back this debt as soon as possible to zero and then bigger picture.
Speaker Change: You know as you become free cash flow positive later on in 2025, how about a dividend you also have the NCI to be in place haven't used it yet could you maybe talk about that as well.
Speaker Change: Okay sure.
Speaker Change: Drew hey, maybe I'll take it.
Speaker Change: Your question initially.
Speaker Change: Jonathan.
Speaker Change: So I'm, calling tie back good morning.
Speaker Change: And so in terms of the kind of cash flow and credit facility. If youre right. We drew most of that.
Speaker Change: So the $130 million through the course of Q1.
I expect we will draw a little bit or we have drawn a little bit more in April just to support the kind of finalization of the ramp up of the mine and I expect now we've capped out on the draw on our credit facility and at this point.
Speaker Change: We're well set to be able to pay down that credit facility through the back half of this year I expect that we will end in Q2, roughly where we are today in terms of the in terms of a draw and then look to repay that through the course of the second half of the year Youre going to get a free cash flow potential in all free.
Speaker Change: Free cash flow expectations will turn pretty significant starting in the month of June and.
Speaker Change: And so that will allow us I think to be able to pay down our debt as well as advance a number of other strategic priorities. We've talked about the exploration projects. He is already on the call we talked about constructing epo.
Speaker Change: The other priority in addition to those on paying down our debt will be too.
To finalize our return of capital program, we've been very public about that for the past.
Speaker Change: Several quarters around our intent to to commence that once we transition back to free cash flow and we expect that that will be a combination of both.
Speaker Change: The dividend and a share.
Speaker Change: Share buyback programs and as you know, we set ourselves up to be able to do that with the NCI b that we.
Speaker Change: Issued and announced back in November of last year.
Speaker Change: Okay great.
Speaker Change: Sure that would make investors happy.
Speaker Change: Maybe my next question is on cost.
Speaker Change: A question for you once again.
Speaker Change: Our sustaining costs were slower than expected in Q1 in part due to higher costs related to the commercial things we're doing.
Speaker Change: Uh huh not being recorded until Q2 could you remind us what are some of those you know kind of.
Speaker Change: Hopefully one time sort of commissioning cost.
Speaker Change: And.
Speaker Change: Included was higher costs and confirmed that it is indeed.
Speaker Change: One time or short lived and so really just confined.
Speaker Change: To maybe Q2, although you have answered that question in your prepared remarks, a little but I just wanted to go.
Speaker Change: Yes.
Speaker Change: Right.
Speaker Change: Really this cost pressure, but initially we were expecting to flow through our results in Q1 that will now flow through in Q2 is really just around I would say the inefficiencies that you did you get from the ramp up of an operation.
Speaker Change: No.
Speaker Change: Mining rates will start to build up through the course of Q1 into Q2, our planned throughput rates.
Speaker Change: I built up quite nicely since we.
Speaker Change: Since we started.
Speaker Change: Operating a new plant post the post the time period, and so just operating those assets and below that nameplates are thresholds really just creates that cost and efficiency.
Speaker Change: It will flow through through the course of Q2 as we sell as we kind of process produce and sell about first.
Speaker Change: Media Luna production. So as you mentioned, but as we commented on the coal Q2 will be and I can confirm will be kind of a one off anomaly.
Speaker Change: The way I would think about that is when I look at consensus.
Speaker Change: As previously for Q1, I would really just shift Webby People's expectations were for Q1 previously I would look to shift that now into Q2.
Speaker Change: And then for the back half of the year in Q.
Speaker Change: Q3 and Q4.
Speaker Change: I feel good about being able to produce and how about cost profile within our guided range.
Speaker Change: To be able to deliver on that guidance through the course of this year.
Speaker Change: Great.
Speaker Change: And then maybe one last question you talked about building up as you mentioned that you have to build up the concentrate before getting a shift for media Luna and that's why.
Speaker Change: World into April.
Speaker Change: Could you maybe on the concentrate two questions number one.
Speaker Change: How did the shipments work are they fairly lumpy anything that we'd be we should be aware of especially around quarter end and then how that could impact.
Speaker Change: Sales and shipment in earnings and such and such and then number two in a world of tariffs could you remind us where your concentrate goes and any concerns in terms of anything that we should be aware of in our world a world of tomorrow.
Speaker Change: Sure so, but maybe just tackling the first question first around any kind of lumpiness soon all concentrate sales.
Speaker Change: In short I don't expect we'll there'll be lumpiness that for this year most of our concentrate is sold to traders the pull through months of the year and so really every day, we have trucks that leif sites that had sort of pulled reminds me of when that product gets there.
Speaker Change: We would close the sale those trucks they might it might you know maybe one day, maybe we have six struck for next day, maybe seven so I think the lumpiness would be very very minor unsold expects a very steady.
Sales stream on the concentrate side.
Speaker Change: From a tariff perspective all of our.
Speaker Change: I'm sure there'll be no impact from our from our concentrate sales as a result of tariffs at least to the world exists today.
Speaker Change: Our products are sold as I mentioned to traders and reported months anyhow, they would typically sell that product into into Asia.
Speaker Change: And then we have a smelter relationship as well, where we sell into Europe.
Speaker Change: So thats, what we expect and product will go to them, but.
Speaker Change: None of our product to a mark to go into the U S and so I'm not expecting any challenges there.
Dan Rollins: Great. Thanks, a lot again, Jody and team for answering all my questions and look forward to the rest of 2025.
Speaker Change: Tesla right.
Speaker Change: Once again, if you have a question. Please press Star then one.
Speaker Change: As there appears to be no more questions. This concludes today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.