Q1 2025 G Mining Ventures Corp Earnings Call
Operator: Hello and good morning, everyone. If you've dialed in by phone, you can follow along with the presentation slides by joining the webcast. All participants are currently in listen-only mode to prevent any background noise. Following the speaker's remarks, there will be a question and answer session. To ask a question, please press star one on your telephone keypad. Webcast participants may submit questions at any time using the Q&A function on the webcast platform. I will now turn the call over to G Mining Ventures. Please go ahead.
Hello, and good morning, everyone. If you've dialed in by phone you can follow along with the presentation slides by joining the webcast. All participants are currently in listen only mode to prevent any background noise.
Following the speakers remarks, there will be a question and answer session.
I ask a question. Please press star one on your telephone keypad webcast participants may submit questions at any time using the Q&A function under webcast platform I will now turn the call over to G. Mining ventures. Please go ahead.
Dusan Petkovic: Good morning, and welcome to G Mining Ventures' Q1 2025 results conference call. I'm Dusan Petkovic, Senior Vice President of Corporate Strategy. Joining me today are Louis-Pierre Gignac, President and CEO, and Julie Lafleur, CFO. This call is being recorded and will be available on our website. All figures are in US dollars unless otherwise stated. Please refer to slide 2 for our cautionary language regarding forward-looking statements. We'll start with Q1 performance, followed by an update on Oko West, and conclude with key 2025 catalysts before opening the line for questions. With that, I'll turn it over to LP.
Speaker Change: Good morning, and welcome to the G mining ventures first quarter 2025 results conference call.
Vishal Petrovich: Vishal Petrovich senior Vice President of strategy, joining me today are <unk>, president and CEO and Joanne Lafleur CFO.
Speaker Change: This call is being recorded and will be available on our website.
Vishal Petrovich: All figures are in U S dollars.
Vishal Petrovich: <unk> stated.
Vishal Petrovich: Please refer to slide two our cautionary language regarding forward looking statements.
Vishal Petrovich: I will start with Q1 performance followed by an update on <unk> and conclude with key 2025 catalysts before opening the lines for questions with that I'll turn it over to help.
Louis-Pierre Gignac: Thanks, Dusan. Q1 marked our second full quarter of production and continued strong execution. Our buy, build, operate model remains our edge, driving disciplined execution, capital efficiency, and cash flow generation. At TZ, we operated closely to plan despite challenging weather, maintaining first quartile cost performance. At Oko West, we've kicked off early works and remain on track for a construction decision in H2. We produced 35,578 ounces at a cash cost of $689 per ounce and AISC of $960 per ounce, reinforcing our first quartile position. Adjusted EBITDA was $69 million, and free cash flow came in at $36 million. We ended the quarter with $149 million in cash.
Speaker Change: Thank you Sean.
Speaker Change: Q1 marked our second full quarter of production and continued strong execution.
Speaker Change: Our buy build operate model remains our edge driving disciplined execution and capital efficiency and cash flow generation.
Speaker Change: ITV we operated closely to plan despite challenging weather, maintaining first quartile cost performance.
Speaker Change: Local west we've kicked off early works and remain on track for a construction decision in the second half.
Speaker Change: We produced 35578 ounces at a cash cost of 689 per ounce.
Speaker Change: <unk> 960 per ounce reinforcing our first quartile position.
Speaker Change: Adjusted EBITDA was 69 million and free cash flow came in at 36 billion.
Speaker Change: We ended the quarter with $149 million in cash.
Louis-Pierre Gignac: We remain on track to deliver 175,000 to 200,000 ounces at AISC between $995 and $1,125 per ounce, with over 56% of production expected in H2 as grades and throughput increase. In Q1, we secured our interim environmental permits at Oko West, enabling us to commence early works activities. Published resource and reserve updates showing material increases year-over-year in all categories. Indicated resources now total 9.4 million ounces. Inferred resources now total 1.2 million ounces. Most importantly, global reserves now total 6.7 million ounces, a 4.6 million ounce increase year-over-year. This quarter, we initiated early works construction activities at Oko West and announced a robust feasibility study confirming Oko West's tier 1 potential.
Speaker Change: We remain on track to deliver 175000 to 200000 ounces at <unk> between 990, $511 25 per ounce.
Speaker Change: With over 56% of production expected in the second half as grades and throughput increase.
Speaker Change: In Q1, we secured our environment, so interim environmental permits at <unk>, enabling us to commence early works activities.
Speaker Change: Although some resource and reserve updates showing material increases year over year in all categories.
Speaker Change: Indicated resources now totaled $9 4 million ounces.
Speaker Change: Third resources.
Speaker Change: $1 2 million ounces.
Speaker Change: And most importantly, global reserves totaled $6 7 million ounces and $4 6 million ounce increase year over year. This quarter. We initiated early works construction activities at <unk> and announced a robust feasibility study confirming <unk> tier one potential.
Louis-Pierre Gignac: Q1 saw steady performance at TZ despite heavy rainfall impacting access to higher grade benches. We drew from our substantial surface stockpiles, which remain robust at 5.5 million tons grading 0.8 grams per ton, representing over 12 months of mill feed. We processed 904,000 tons at 1.4 grams per ton with 88% recovery, producing 35,578 ounces. Throughput averaged just over 10,000 tons per day or 78% of nameplate capacity, reflecting unscheduled downtime, largely related to the replacement of damaged SAG mill Poly-Met liners. The SAG mill liner upgraded was completed in April and will help support greater than 90% availability going forward. We expect grades and tonnage to increase in the H2, driving stronger production.
Speaker Change: Q1 saw steady performance at TV, despite heavy rainfall impacting access to higher grade benches.
Speaker Change: Drew from our substantial surface stockpiles, which remained robust at $5 5 million tonnes grading one eight grams per tonne.
Speaker Change: Presenting over 12 months or so.
Speaker Change: We processed 904000 tonnes at 124 grams per tonne with 88% recovery producing 35578 ounces.
Speaker Change: Throughput averaged just over 10000 tons per day, or 78% of nameplate capacity, reflecting unscheduled downtime largely related to the replacement of established segment poly designers.
Speaker Change: The Sag mill liner upgrade was completed in April.
Speaker Change: And we will help support greater than 90% availability going forward.
Speaker Change: We expect grades and tonnage to increase in the second half driving stronger production.
Louis-Pierre Gignac: I'm also proud to report 0 lost time injuries in the quarter, underscoring the strength of our safety culture and the discipline of our team. TZ is built to generate free cash flow across all phases of the commodity cycle. Despite lower throughput, unit costs were well managed. Cash costs were 689 per ounce, and AISC was 960 per ounce, below our full-year guidance midpoint. As production scales, we expect further efficiencies, especially in G&A, as fixed costs are spread over higher volumes. The AISC of 960 per ounce is well below the 2025 guidance and is largely driven by deferral of sustaining capital expenditures from Q1 into Q2. Sustaining capital for the quarter totaled $5 million, including $2 million in capitalized waste stripping. Approximately $25 million of spending originally planned in March was deferred into Q2, where we expect $40 million in sustaining capital.
Speaker Change: I'm also proud to report zero lost time injuries in the quarter underscoring the strength of our safety culture and the discipline of our team.
Speaker Change: Yeah.
Speaker Change: TV is built to generate free cash flow across all phases of the commodity cycle.
Speaker Change: Lower throughput unit costs were well managed.
Speaker Change: Cash costs were 689 per ounce in ASIC was 960 per ounce below our full year guidance midpoint.
Speaker Change: As production skills, we expect further efficiencies, especially in G&A as fixed costs are spread over higher volumes.
Speaker Change: The AC 90, 960 per ounce is well below the 2025 guidance and is largely driven by deferral of sustaining capital expenditures from Q1 into Q2.
Speaker Change: Sustaining capital for the quarter totaled $5 million, including $2 million in capitalized stripping.
Speaker Change: Approximately $25 million of spending originally planned in March was deferred into Q2.
Speaker Change: We expect $40 million in sustaining capital.
Louis-Pierre Gignac: It's important to note that these investments are largely one-time in nature. Key items include $20 million to complete the mine feed expansion, $10 million for major mobile equipment components, and $5 million for construction of the second and final CIL tailings storage pond. Looking ahead, sustaining capital for H2 of the year is expected to total $22 million, of which 70% is capitalized waste stripping. This sets up a lower and more normalized spend profile in H2 of the year. TZ remains firmly in the first quartile of the global cost curve, a competitive advantage as we ramp up and fund growth internally. With that, I'll hand the call over to Julie to walk you through our financial results for the quarter.
Speaker Change: It's important to note that these investments are largely onetime in nature.
Speaker Change: Key items include $20 million to complete the mine fleet expansion.
Speaker Change: $10 million from major mobile equipment components is $5 million for construction of the second and final CIL tailings storage.
Speaker Change: Looking ahead sustaining capital for the second half of the year is expected to total 22 million of which 70% is capitalized waste stripping.
Speaker Change: This sets up a lower and more normalized spend profile in the second half of the year.
Speaker Change: Television remains firmly in the first quartile of the global cost curve competitive advantage as we wrap up and fund growth internally.
Speaker Change: With that.
Speaker Change: I'll hand, the call over to Julie to walk you through our financial results for the quarter.
Julie Lafleur: Thank you, Louis-Pierre, and good morning, everyone. Revenue was $98 million at an average realized gold price of $2,766 per ounce. Income from mining operation was $60 million, a 61% margin. Adjusted EBITDA was $69 million, and adjusted net income was $35 million or $0.16 per share. The consolidated effective tax rate for the quarter was 48%, compared to Brazil's statutory rate of 34%. The higher rate primarily reflects pre-tax losses in our non-Brazilian subsidiaries, where no deferred tax assets were recognized. As a result, the tax benefit on those losses wasn't reflected in our consolidated tax expense, driving the effective rate higher at the group level. Importantly, we expect a significant reduction in our Brazilian tax rate once the SUDAM incentive is approved, lowering it to 15.25%.
Julie: Thank you Louise and good morning, everyone.
Julie: Revenue was $98 million at an average realized gold price.
Julie: $2766 per ounce.
Julie: Income from mining operation was $60 million at 61% margin.
Julie: Adjusted EBITDA was $69 million and adjusted net income was 35 million or 16 16 cents per share.
Julie: The consolidated effective tax rate for the quarter was 48% compared to Brazil statutory rate of 34%.
Julie: The higher rate.
Julie: Really reflects pre tax losses in our non Brazilian subsidiary.
Julie: There are no deferred.
Julie: As such we're recognized as a result the.
Julie: Tax benefit on those losses wasn't reflected in our consolidated tax expense driving the effective rate higher at the group level.
Julie: Importantly, we expect a significant reduction in our Brazilian tax rate once the Sudan incentive is approved lowering it to 15, 25%.
Julie Lafleur: This approval is expected in the coming months. Crucially, it is anticipated to apply retroactively to the beginning of 2025, which would further reduce our full-year effective tax rate. Free cash flow generated by TZ will be the primary source of capital to fund future disciplined growth at GMIN's development projects. It is defined by the corporation as cash flow from operating activities adjusted for investment in long-term inventories, which represents ore mined and stockpiled that will not be produced in the following 12-month period, less changes in non-cash working capital, less sustaining capital expenditures inclusive of capitalized stripping. In Q1, free cash flow came in at $36 million. We ended Q1 with $149 million in cash, an $8 million increase from Q4.
Julie: This approval is expected in the coming months and crucially. It is anticipated to apply retroactively to the beginning of 2025, which would further reduce our full year effective tax rate.
Julie: Free cash flow generated by television will be the primary source of capital to fund future disciplined growth SG&A development projects.
Julie: It is defined by the Corporation.
Julie: Cash flow from operating activities adjusted for investment and long term inventories which represents.
Julie: Our mined and stockpiled.
Julie: That will not be produced in the following 12 month period.
Julie: Changes in non cash working capital invest sustaining capital expenditures inclusive of capital capitalized stripping.
Julie: In Q1 free cash flow came in at $36 million.
Julie: Okay.
Julie: We ended Q1 with $149 million in cash.
Julie: And an $8 million increase from Q4.
Julie Lafleur: The key drivers were $36 million in free cash flow, $10 million investment in long-term inventories, $17 million directed toward advancing the Oko West project, which is $10 million in long-term deposits and $7 million in early works, $3 million in exploration expenditures, and remaining $2 million net inflow reflects a combination of financing outflows and favorable FX adjustment. With $149 million in cash, we have ample liquidity to support early works at Oko West and strategic growth initiatives simultaneously. With that, I would like to turn the call over to Dusan for an update on our growth strategy.
Julie: The key drivers were.
Julie: $36 million in free cash flow.
Julie: $10 million investment in long term inventories.
Julie: 17 million directed toward advancing the <unk> West project, which is $10 million in long term deposits and $7 million in early works.
Julie: $3 million in exploration expenditures and remaining 2 million net inflow reflects a combination of financing outflow.
Julie: Horrible FX adjustments.
Julie: With $149 million in cash we have ample liquidity to support early works at <unk> west and strategic growth initiatives simultaneously.
Sean Cornett: With that I would like to turn the call over to do Sean Cornett.
Julie: Date on our growth strategy.
Dusan Petkovic: Thanks, Julie. Oko West is rapidly establishing itself as one of the premier development stage gold projects in the Americas. The April feasibility study confirmed tier-one production potential and was closely aligned with the PEA release just 7 months prior, which is a strong validation of the quality and thoughts we put into our technical work. It is engineered to have a 12-year mine life with average annual gold production of 350,000 ounces per year and a first quartile AISC of just $1,123 per ounce. With an initial CapEx of $972 million, the project delivers an after-tax NPV5 of $2.2 billion and a robust 27% IRR using a gold price of $2,500 per ounce.
Sean Cornett: Thanks Julien.
Sean Cornett: <unk> West is rapidly establishing itself as one of the Premier development stage gold projects in the Americas.
Sean Cornett: So feasibility study confirmed tier one production potential and is closely aligned toward the PAA release of seven months prior which is a strong validation of the quality and thoughts we put into our technical work.
Sean Cornett: It is engineered to have a 12 year mine life.
Sean Cornett: With average annual gold production of 350000 ounces per year, and our first quartile ASIC of just about $1123 per ounce.
Sean Cornett: With an initial capex of $972 million. The project delivers an after tax NPV five of $2 2 billion and a robust 27% IRR.
Sean Cornett: Low prices $2500 per ounce.
Dusan Petkovic: Every $100 per ounce increase change in the gold price adds roughly $200 million in after-tax NPV, giving it a lot of leverage to the gold price. At today's spot price of $3,200, the NPV reaches $3.6 billion and an IRR of 38%. The April feasibility study also validated the quality of the deposit. We completed an additional 46,000 liters of drilling that resulted in 76% conversion of inferred mineral resources, raising the indicated resource to 5.4 million gold ounces, while also improving the average gold grade to 2.1 grams per tonne. The inaugural reserve estimate came in at 4.6 million ounces at an average gold grade of 1.9 grams per tonne.
Sean Cornett: Every $100 per ounce increased change in the gold price.
Sean Cornett: Roughly 200 million aftertax, MTV convenient a lot of leverage to the gold price.
Speaker Change: Todays spot price of $3200 MTV reaches $3 6 billion.
Sean Cornett: IRR of 38 <unk>.
Sean Cornett: The feasibility study of validated the quality of the deposit.
We completed an additional 46000 meters of drilling the resulted in 76% conversion of inferred resources.
Speaker Change: Great. Thank you indicated resource of $5 4 million gold ounces.
Sean Cornett: Also improving the average gold grade to two one grams per tonne.
Sean Cornett: Cannot roll reserve estimate came in at $4 6 million ounces, an average gold grade at one nine grams per tonne.
Dusan Petkovic: Demonstrating our commitment to disciplined valuation, we applied a gold price of only $1,950 per ounce for resource estimation and $1,800 per ounce for reserve calculation, making sure robust project economics, even under lower price scenarios. Oko West distinguishes itself through its combination of scale and grade, a rare pairing among development stage projects in the Americas. There are few assets of comparable size and resource quality at a similar stage of development. Additionally, Oko West is one of the few development stage projects in the Americas with a production profile exceeding 300,000 ounces per year and one of even fewer that has reached the feasibility stage. It is truly a rare American asset whose closest comparison, in our view, is Kinross's Great Bear Project, another large-scale open pit and underground operation.
Sean Cornett: Demonstrating our commitment to disciplined valuation, we applied a gold price of only $1950 per ounce.
Sean Cornett: Of course explanation and $1800 per ounce for reserve calculations, making sure robust project economics, even under a lower price scenarios.
Sean Cornett: Local west distinguishes itself through a combination of scale and Greg are rare Perry among development stage projects in the Americas.
Sean Cornett: The assets of comparable size and resource quality at a similar stage of development.
Sean Cornett: Additionally, <unk> is one of the few development stage projects with the production.
Sean Cornett: Duction profile exceeding 300000 ounces per year, and one of even store.
Sean Cornett: Feasibility stage it.
Sean Cornett: It is fairly rare American asset with closest comparison in our view is Kinross has great bear project and other large scale open pit and underground operation.
Dusan Petkovic: We remain on track to advance Oko West a formal construction decision in H2, less than a year after acquiring the project. This rapid progression reflects the same disciplined execution applied at TZ. In December, we submitted the environmental impact assessment to Guyana's EPA, and in January, received an interim permit enabling us to begin early works construction on an accelerated schedule. This year's $200 million CapEx includes infrastructure such as roads, barge landing, airstrip, camp, utilities, and power. Earthworks are advancing well, with concrete work set to begin shortly. Our goal is to substantially complete these year-end to support a seamless workforce ramp up. Worker training programs began in January, and the headcount reached 200 by the end of March. We expect capacity for 350 by May.
Sean Cornett: We remain on track to advance local west formal construction decision and HQ.
Sean Cornett: Less than a year after acquiring the project.
Sean Cornett: This rapid progress and reflects the same disciplined execution apply the television.
Sean Cornett: In December we submitted the environmental impact assessment EPA.
Sean Cornett: And in January we received the interim permit enabling us to begin early works construction on an accelerated schedule. This.
Sean Cornett: This year is $200 million Capex includes infrastructure, such as roads large landing airstrip can utilities and power.
Sean Cornett: Earthworks are advancing well with concrete work section shortly.
Sean Cornett: Our goal is to substantially complete these year end to support a seamless workforce ramp up.
Sean Cornett: Corporate training programs began in January and the head count reached 200 by the end of March we expect capacity from 350 by May.
Dusan Petkovic: To de-risk the schedule, we've committed or negotiated approximately $150 million in long-lead items, including mobile and marine equipment, grinding mills, primary crusher, and the power plant. First deliveries of equipment are expected in June, allowing us to begin self-performing earthworks on site. The final permitting milestone is receipt of the full environmental permit. Public consultations concluded in February, and feedback has been integrated into our regional ESG programs. Final responses are being submitted by mid-May, with full permit approval expected in Q2. In parallel, we are advancing financing discussions with lenders and strategic partners with a package expected this summer ahead of a formal construction decision in H2. Our approach remains disciplined and focused on preserving shareholder value with no equity dilution anticipated.
Sean Cornett: De risks the schedule.
Sean Cornett: Committed or negotiated approximately $150 million and long lead items.
Sean Cornett: <unk> mobile and marine equipment grinding mills primary crusher and the power plant.
Sean Cornett: First deliveries of equipment are expected in June, allowing us to begin self performing earthworks onsite.
Sean Cornett: The final permitting milestone is receipt of the environmental permit.
Sean Cornett: Public consultations concluded in February and feedback has been integrated into our regional ESG programs.
Sean Cornett: And all of the sponsors are being submitted by midnight with full permit approval expected in Q2.
Sean Cornett: In parallel.
Sean Cornett: We are advance financing discussions with lenders and strategic partners with.
Sean Cornett: With a package expected. This summer ahead of a formal construction decision in the second half.
Sean Cornett: Our approach remains disciplined and focused on preserving shareholder value with no equity dilution anticipated.
Dusan Petkovic: Assuming execution continues on schedule, we anticipate first gold in late 2027 and full transition to intermediate producer status, surpassing 500,000 ounces annually by year-end 2028. With that, I'll hand it over to LP for closing remarks.
Sean Cornett: Assuming execution continues on schedule, we anticipate first gold in late 2027, and full transition to intermediate producer status, surpassing 500000 ounces annually.
Sean Cornett: Year end 2028.
Sean Cornett: With that high level.
Sean Cornett: If the LP for closing remarks.
Louis-Pierre Gignac: To summarize, Q1 marked a good start to the year. We delivered solid financial results while using the early stages of operations to optimize performance. With those initial adjustments now behind us, we are positioned to meet our guidance for the remainder of the year. Looking ahead, key catalysts include receipt of Oko West’s final environmental permit, a construction decision in H2, continued progress on our exploration efforts. We built GMIN to be a disciplined, self-funded, growth-oriented producer. With the first quartile cost profile, a clean balance sheet, and the world-class development project in Oko West, we are well-positioned to create lasting shareholder value. Thank you to our employees, partners, and shareholders for your continued support. With that, I will turn the call back to the moderator to begin the Q&A.
Sean Cornett: To summarize Q1 marked a good start to the year, we delivered solid financial results, while using the early stages of operations to optimize performance.
Sean Cornett: With those initial adjustments now behind US we're positioned to meet our guidance for the remainder of the year.
Sean Cornett: Looking ahead key catalysts include receipt of vocalists final environmental permit a construction decision in the second half and continued progress on our exploration efforts.
Sean Cornett: We built <unk> to be a disciplined self funded growth oriented producers.
Sean Cornett: With the first quartile cost profile, a clean balance sheet and World class development project in local west we are well positioned to create lasting shareholder value.
Sean Cornett: Thank you to our employees partners and shareholders for your continued support.
Speaker Change: With that I will turn the call back to the moderator to begin the Q&A.
Operator: Before we begin the floor for questions, a quick reminder. Phone participants can dial star one to ask a question, and webcast viewers can continue submitting their questions via the Q&A function. Your first question comes from the line of Michael Siperco with RBC Capital Markets. Your line is open.
Speaker Change: Before we begin the floor for questions a quick reminder.
Speaker Change: Cowen participants can dial star one to ask a question and webcast viewers can continue submitting your questions via the Q&A function.
Speaker Change: And your first question comes from the line of Michael <unk> with RBC capital markets. Your line is open.
Michael Siperco: Yeah, thanks very much for taking my questions. LP, you mentioned this was the Q2 of commercial production. In the context of that and the unplanned downtime, the weather issues in the quarter, can I ask you to put the ramp-up to date in context? Are you seeing any surprises, any areas of concern so far? Have you made any adjustments to the maintenance schedule or anything like that in the flow sheet after what you've seen, say, in the first couple of quarters here?
Speaker Change: Yes, thanks, very much for taking my questions.
Speaker Change: L. P. You mentioned this is the second quarter of commercial production in the context of that.
Speaker Change: And the unplanned downtime weather issues in the quarter can I ask you to put the ramp up to date and contacts are you seeing any surprises any areas of concern. So far have you made any adjustments to the maintenance schedule or or anything like that in the flow sheet. After what you've seen in the first couple of quick.
Speaker Change: Orders here.
Louis-Pierre Gignac: I think, obviously, we continue to make improvements in the process plant. I'd say the, like we mentioned, the big downtime for us was the mill liners, which we've changed at the end of April. What we've seen since is really keeping the running time high without having any issues to have to stop the mills to do inspections and do essentially unscheduled replacements of liners. What we've seen is really the plant running at really high ton per hour throughputs in line with expectations. It's really been getting the running time, uptime to where it is. That's why with the changes that we've made, we've seen really great progress and good results since the change-out. That's very encouraging.
Speaker Change: Yes, I think.
Speaker Change: Obviously, we continue to make improvements in the process plant.
Speaker Change: I'd say the like we mentioned the big downtime for US was the mill liners, which we've changed at the end of April.
Speaker Change: And what we've seen senses.
Speaker Change: Really keeping the running time high without having any any issues to happen.
Speaker Change: To stop the mills to do inspections.
Speaker Change: Do essentially unscheduled.
Speaker Change: Unscheduled.
Speaker Change: Raceman some liners. So what we've seen is really the plant running at.
Speaker Change: Really high tons per hour.
Speaker Change: Throughput in line with expectations and it's really been.
Speaker Change: Getting the running time uptime to where it is.
So thats why with the changes that we've made we've seen really great progress.
Speaker Change: The results since the change out so that's very encouraging.
Michael Siperco: In terms of the mining, it is Brazil. There's always going to be weather. Shouldn't be a surprise there. Any adjustments that you think you need to make there? Is again, everything sort of in line with expectations, in line with what you expected during the ramp-up?
Speaker Change: And then in terms of the mining I mean, it is it is Brazil, theres always going to be weather shouldnt. It shouldnt be a surprise there.
The adjustments that you think you'd need to make there or has it gotten everything sort of inline with expectations in line with what you expected during the ramp up.
Louis-Pierre Gignac: Yeah. In terms of the pit is really the mining operations that are impacted by rain. Like we said, we had abnormally high rain, but we've been able to keep the mine running quite well. We always have access to ore on surface and stockpiles to feed the plant. The plant never is unfilled due to weather, given the large stockpiles that we have. Yeah, some of the adjustments that we're making are just adding to our pumping capacity to deal with the rainy season, which is typically high in Q1.
Speaker Change: Yes, so I mean in terms of the pit is really the mining operations that are impacted by rain.
Speaker Change: And like we said, we had abnormally high rain, but.
Speaker Change: We've been able to keep the mine running quite well, we also have access to ore on surface in stockpiles to feed the plant.
Speaker Change: So the plant never.
Speaker Change: As unfilled due to due to weather given the large stockpiles that we have but yes. Some of the adjustments that we're making are just.
Speaker Change: Adding to our pumping capacity.
Speaker Change: To deal with the rainy season, which as you know.
Speaker Change: Typically high in the first quarter.
Michael Siperco: Okay, great. Maybe just a question on Oko West. Obviously, we have the game plan from the feasibility study, which was released not too long ago. Can you talk about any potential upside versus the study or the resource over the next three years of construction here? Is there any exploration you're particularly focused on that could positively impact the mine plan or anything additional that you're looking in terms of the engineering that could see a change before we get to production?
Speaker Change: Okay, great maybe.
Speaker Change: Just a question on alcohol last obviously, we have the game plan from the feasibility study, which was released not too long ago can you talk about any potential upside versus the study.
Speaker Change: The resource over the next three years of construction here is there any exploration, you're particularly focused on that could positively impact.
Speaker Change: The mine plan or anything additional that you are looking at in terms of.
Speaker Change: The engineering that could see a change before we get to production.
Louis-Pierre Gignac: Yeah, absolutely. We're actively exploring as we speak, with the $8 million budget that we have this year, we expect to be adding to resources and updating our resource models on an annual basis. That's a few more iterations in front of us before we even start commercial production. Yeah, we do expect to find additional resources. The other aspect that will be improved from the feasibility study is some of the geotech parameters, where we've added some additional geotech holes and investigations to support some more steepened slopes where we had some pretty conservative recommendations in the feasibility study. That's part of some of the ongoing optimization work that's going to be taking place as part of detail engineering.
Speaker Change: Yes, absolutely.
Speaker Change: We're actively exploring.
Speaker Change: As we speak with the $8 million budget, then we have this year, where we are.
Speaker Change: We expect to be adding to resources and updating our resource models on an annual basis. So that's a.
Speaker Change: That's a few more iterations in front of us before we even start commercial production.
Speaker Change: So yeah, we do expect to find additional resources and the other aspect that will be.
Speaker Change: Improved from the feasibility study is some of the Geo Tech parameters.
Speaker Change: Where we've added some additional.
Speaker Change: <unk> holds an investigation to support some more steepen slopes, where we had some some pretty conservative.
Speaker Change: Recommendations in the feasibility study so that's part of some of the ongoing optimization work.
Speaker Change: This is going to be taking places as part of detailed engineering.
Michael Siperco: One of the changes in the fee, if I'm not mistaken, in the feasibility versus the PEA was a shallower pit leaving more for the underground. As far as I understand, most of the upside is at depth. Is it fair to say that exploration could change the mix of underground versus open pit? Is that how to think about it? Are you looking maybe more to optimize the mine plan in terms of bringing higher grade forward?
Speaker Change: So one of the changes in the fee.
Speaker Change: I am not mistaken on the feasibility versus the PPA was.
Speaker Change: <unk> pet, leaving more for the underground and as far as I understand most of the upside is.
Speaker Change: That is it fair to say that XP.
Speaker Change: Exploration will could.
Speaker Change: Change the mix of underground versus open pit is that how to think about it or are you looking maybe more to optimize the mine plan in terms of bringing higher grade forward.
Louis-Pierre Gignac: Yeah, a lot of the exploration that we're doing now is more near surface. Results that would be impacting the open pit portion of the project. That's more near term in terms of its impact on the life of mine plan. Currently, we're not drilling at depths, which would essentially extend underground mine life at this point. That's where we're really focusing. We're actually drilling some splays that are within the ore body, within the pits, and extensions that go beyond the current pit limits. That's where we expect some additional resources and improvements in the life of mine, the open pit portion of the life of mine plan.
Speaker Change: Yeah, a lot of the exploration that we're doing now is more near surface.
Speaker Change: So.
Speaker Change: Results that would be impacting the open pit portion of the project.
Speaker Change: So thats more near term in terms of its impact on the life of mine plan.
Speaker Change: Currently we're not drilling at depth, which would essentially extend the underground mine life at this point.
Speaker Change: So that's where we were really focusing so we're actually.
Speaker Change: Drilling.
Speaker Change: <unk> plays that are within the ore body within the pits and extensions that go beyond the current pit limits.
Speaker Change: So that's where we expect.
Speaker Change: Some additional resources.
Speaker Change: Improvements in the life of mine the open pit portion of the lesser mind plan.
Michael Siperco: Okay, thanks. Okay, maybe one last one on Gurupi. After the resource earlier this year, could you maybe map out the next key steps or the timeline for the project as you build Oko West? What should we be expecting over 2025 and I suppose into 2026?
Speaker Change: Okay. Thanks, Okay, maybe one last one on group.
Speaker Change: After the resource earlier this year could you maybe map out the next key steps or the timeline for the project as you build alcohol last.
Speaker Change: What should we be expecting over 25% and I suppose into 'twenty six.
Louis-Pierre Gignac: What we've done at this point is engage with a lot of the stakeholders in the region. We're in the process of reestablishing permits to restart exploration. That's really the next step. In the meantime, we've done a lot of surface soil sampling, some trenching, and we've done a lot of compilation work, which is really going to support exploration efforts as we move forward. That's currently what we're doing. We do expect that based on the feedback that we've had, that we'll likely be increasing our exploration budget for Gurupi in the coming years, and even maybe in H2 this year. That's the objective. We'll obviously be looking to do more internal studies on how we can see the developments based on the existing resources.
Speaker Change: Yes, so what we've done at this point is.
Speaker Change: Engage with a lot of the stakeholders in the region. So we're in the process of reestablishing permits to restart exploration.
Speaker Change: So that's really the next step in.
Speaker Change: In the meantime, we've done a lot of surface soil sampling some trenching.
Speaker Change: And we've done a lot of constellation works.
Speaker Change: Which is really going to support.
Speaker Change: Exploration efforts as we move forward.
Speaker Change: So that's that's currently what we're doing so we do expect that based on the feedback that we've had that will likely be.
Speaker Change: Increasing our exploration budget for group B and.
Speaker Change: In the coming.
Speaker Change: In the coming years, and even maybe in the second half this year.
Speaker Change: So that's the objective.
Speaker Change: Obviously be looking to do more internal studies on <unk>.
Speaker Change: We can see the development based on the existing resources.
Louis-Pierre Gignac: We'll make that decision when we feel it's appropriate to start essentially producing a PEA type study on that project. Likely more into next year.
Speaker Change: So we'll make that decision when we feel it's appropriate.
Speaker Change: To start essentially producing.
Speaker Change: The P type type study on that project, so likely more into next year.
Michael Siperco: Is it fair to say that the next step might be an updated resource sometime in 2026 before a public study? Is that the way to look at how you're approaching it?
Speaker Change: Is it fair to say that the next step might be an updated resource sometime in 2026 before public study is that the way to look at how you are approaching it.
Louis-Pierre Gignac: Well, with the resource that we've completed so far this year, there's sufficient resources to support a PEA, where you can use inferred resources. Really our objective is to restart exploration, see if we can grow it first before we undertake technical studies and a PEA at that point. Yeah, the point would be is with exploration, we would likely do a resource update that would lead into a PEA next year.
Speaker Change: Well with the resources that we've completed so far this year.
Speaker Change: There are sufficient resources to support our P. A.
Speaker Change: Where you can use them for inferred resources, but really our objective is to restart exploration and see if we can grow it first before we undertake technical studies.
Speaker Change: At that point so yes.
Speaker Change: The point would be is with exploration, we would likely do a resource update that would lead into next year.
Michael Siperco: Okay, great. Thanks very much. I'll pass it on.
Speaker Change: Okay, great. Thanks, very much I'll pass it on.
Operator: Your next question comes from the line of Anita Soni with CIBC. Your line is open.
Speaker Change: Your next question comes from the line of Anita Soni with CIBC. Your line is open.
Anita Soni: Hi, good morning, LP, and thanks for taking my question. Firstly, I just wanted to double-check on a couple of things. On the nameplate capacity, I think it's 12,800 tons per day. Does that include the 90% availability that you would have at nameplate, or would we have to apply the 90% on top of that?
Anita Soni: Hi, good morning.
Speaker Change: Thanks for taking my questions. So firstly I just wanted to.
Speaker Change: Double check on a couple of things on the nameplate capacity.
Speaker Change: It's 12 eight.
Speaker Change: Eight.
Speaker Change: K tonnes per day.
Speaker Change: Is that does that include like the the 90% availability that you would have at nameplate or if we have to play it for 90%.
Speaker Change: Yeah.
Louis-Pierre Gignac: Yeah, that includes it. It's a nominal rate.
Speaker Change: Yes.
Speaker Change: That includes it so it's a nominal rates. So that's inclusive of availability. So you are trying to move from 78% to 90 at this point.
Anita Soni: All right.
Louis-Pierre Gignac: That's inclusive of availability, yeah.
Anita Soni: You're trying to move the 78 to the 90 at this point, but that includes.
Louis-Pierre Gignac: Correct.
Anita Soni: Okay. Got it. All right. Then just in terms of the grades as they evolve over the course of the year, what are you trying to aim towards by year-end in terms of grades?
Speaker Change: Okay got it alright, and then just in terms of the grades as they evolve over the course of the year. What do you. What are you trying to aim towards by year end in terms of grades.
Louis-Pierre Gignac: We'll be in the 160 range, in H2, and we do expect to see grades up to 1.8. Yeah, we do expect some higher grades in H2.
Speaker Change: We will be in the 160 range.
Speaker Change: In the second half.
Speaker Change: We do expect to see grades up to one eight.
Speaker Change: So yes, we do expect some higher grades in the second half.
Anita Soni: Okay. All right. Then just in terms of the stripping, I'm not sure if this is correct, but my assumption was something along the lines of 4 to 1 strip ratio, 4.5, and I think it was much lower this quarter. I am just wondering what the intentional stripping ratio is this year. If that's the case, I think there was a bit of underspend on the stripping, and which quarters will that catch up?
Speaker Change: Alright, and then just in terms of the stripping I'm.
Speaker Change: I'm not sure if I. If this is correct, but my assumption was something along the lines of four to one strip ratio of $4 five and I think it was much lower this quarter. So I'm just wondering what the stripping what the intention on stripping ratio is this this year and if that's the case I think I know there was a bit of understanding on the stripping and will that like how when which quarter.
Speaker Change: I gotcha.
Louis-Pierre Gignac: This quarter we had a strip ratio of 145. For the year, our guidance is 2.5. The strip ratio will start coming up in the H2 of the year, and that's in line with the additional shovel that we're bringing in to increase our mining rate. The other thing is we've had essentially positive reconciliation where some of the material that we expect to be waste ends up being mineralized and typically lower grade material that we stockpile. That's been lowering our strip ratio on our actuals so far.
Speaker Change: Yes.
Speaker Change: So I mean this quarter, we had a strip ratio of $1 45 for the year our guidance is $2 five.
Speaker Change: So yeah, the strip ratio will start coming up in the second half of the year and that's kind of in line with the additional.
Speaker Change: Shovel that we're bringing in to increase our mining rate.
Speaker Change: But the other thing is we've had essentially positive reconciliation, where some of the material that we expect to be waste ends up being mineralized.
Speaker Change: Typically a lower grade material that we stockpile.
Speaker Change: So thats been lowering our strip ratio.
Speaker Change: Our actual so far okay and whats the guide for the announcer stripping.
Anita Soni: Okay. Was the guide for the amount of stripping, I think, sorry, I'm just taking a look here. It's a little north of $20 million. Is that still the expectation?
Speaker Change: Yeah.
Speaker Change: Taking a look here.
Speaker Change: A little north of $20 million is that still the expectation.
Louis-Pierre Gignac: On the total-
Speaker Change: On the total top.
Anita Soni: capitalized strip.
Louis-Pierre Gignac: Yeah.
Anita Soni: Capitalized strip. Yeah.
Speaker Change: Capital et cetera.
Louis-Pierre Gignac: Yeah, that's in terms of cost. Yeah.
Speaker Change: Yes, that's in terms of cost yet.
Anita Soni: Okay. All right. That's it for my questions. I'll get back in the queue.
Speaker Change: Alright, thats it from my questions I'll go backwards.
Louis-Pierre Gignac: Thanks.
Speaker Change: Thanks.
Operator: Again, if you would like to ask a question, press star one on your telephone keypad, and webcast viewers can continue submitting their questions via the Q&A function. Your next question comes from the line of Andrew Mikitchook with BMO Capital Markets. Your line is open.
Speaker Change: Again, if you would like to ask a question press star one on your telephone keypad and webcast viewers can continue submitting their questions via the Q&A function and your next question comes from the line of and you make a chip with BMO capital markets.
Speaker Change: Your line is open.
David Brown: Thank you. LP, maybe we can just quickly go back to the segment liner. Can you give us a sense of, I don't know, how many days you guys lost in Q1? How much of that would have extended into Q2? Did you really have to kind of give us a sense of what we should expect on a Q2 impact, if any?
Speaker Change: Thank you.
Speaker Change: If you can just quickly go back to the Sag mill liner can you give us a sense of how.
Speaker Change: How many days you guys lost in Q1.
Speaker Change: And.
Speaker Change: How much of that would've trends.
Speaker Change: Extended into Q2 like or did you really have.
Speaker Change: You kind of give us a sense of what we should expect on a Q2 impact if any.
Louis-Pierre Gignac: Yeah. Q2, it's been April, where we had some continued impacts from that. Then we had obviously the scheduled shutdown to do the replacement, which we kept within our scheduled shutdown time. Basically in April, it was about 5 days that were downtime just related to the liners. Since we started back up with the liner replacement, the throughput has been excellent and the uptime has been equally very good. That's why it feels like we've really turned the corner with this issue and look to have Q2 be a better quarter for us.
Speaker Change: Yes, So Q2 I mean, it's been April where we had some continued impacts from that.
Speaker Change: And then we had obviously the <unk>.
Speaker Change: Scheduled shutdown to do the replacement, which we kept within our schedule.
Speaker Change: Oh.
Speaker Change: Shut downtime so basically in April I mean, it was about five days.
Speaker Change: That were.
Speaker Change: Downtime just related to.
Speaker Change: To the lines.
Speaker Change: And since we started back up with the Lennar replacement.
Speaker Change: The throughput has been excellent and the uptime has been.
Speaker Change: Equally very good so that's why it feels like we really turned the corner with the with this issue.
Speaker Change: And look to have Q2 be.
Speaker Change: B, a better quarter for us.
Speaker Change: Yeah.
David Brown: Okay. Just going to Oko West. I think it was Dusan who was quoting the workers, or yourself, I don't remember. Anyway, apparently there's, I think I wrote down 200 workers by the end of March, that you're expecting another increase by the end of May. Can you give us a sense what the kind of full manpower total should be, just so we have an idea, or maybe by the end of the year, just so we have an idea how that should progress?
Speaker Change: Okay, and then just going to <unk> west.
Speaker Change: I think it was duchenne was quoting the workers were yourself I remember anyway.
Speaker Change: Apparently I think I wrote down 200 workers by the end of March.
Speaker Change: You're expecting another increase by the end of May.
Speaker Change: Can you give us a sense of what the kind of fall.
Speaker Change:
Speaker Change: Manpower total should be just so we have an idea or maybe by the end of the year. Just so we havent, even how that should expand how does that should progress.
Louis-Pierre Gignac: Yeah. The 350 that we refer to is based on the expansion of the existing exploration camp. That'll give us 350 beds soon, by the end of May, basically. Basically, the team on site is focused on constructing our permanent camp. As we have units that are constructed, we'll be able to add beds on site and have that continue to ramp up. By the end of the year, we're thinking anywhere between 750 to 1,000 is what we'll be able to accommodate on site. Obviously, everything else needs to follow with that, so kitchen, sewage, water, and the facilities to support that number of people. Yeah, that's really the push in terms of our early works program right now.
Speaker Change: Yes so.
Speaker Change: The $3 50 that we referred to is based on the extension of the existing exploration camp.
That'll give us 350 beds.
Speaker Change: Soon but by the end of May basically.
Speaker Change: And basically the team on site is focused on constructing our permanent camp. So as we have units that are.
Speaker Change: Constructed will be able to add beds on site.
Speaker Change: And how would that continue to ramp up so by the end of the year we're thinking.
Speaker Change: Anywhere between $7 50 to 1000.
Speaker Change: Is what we'll be able to to accommodate onsite and obviously everything else needs to follow with that so kitchen sewage water.
Speaker Change: The facilities to support that that number of people.
Speaker Change: So yeah, that's that's really.
Speaker Change: The push in terms of our early works program right now.
David Brown: Okay, my last question is on the financing facility being considered here. I think even in the press release, you used the words that you're not expecting equity dilution, on the debt side, are you looking at just kind of plain vanilla commercial loans or are other options available or more advantageous? What's the permutation of availability or what should we be expecting?
Speaker Change: Okay and then my last question is on the financing facility being considered here.
Speaker Change: <unk>.
Speaker Change: I think even in the press release, you used the word that.
Speaker Change: We're expecting equity dilution, but on the debt side.
Speaker Change: Okay.
Speaker Change: Are you looking at just.
Speaker Change: Kind of plain vanilla commercial loans, there are other options available or.
Tejas: And then tejas.
Tejas: The permutation of availability or what should we be expecting.
Tejas: Okay.
Louis-Pierre Gignac: Yeah. We've had a lot of inbounds and we have a lot of options in front of us. I mean, the thinking at this point is we have equipment financing that is available to us with the equipment that we're purchasing. We'll likely be having a component that's tied to that. The other piece that will figure in our financing package will be essentially a corporate revolver with Canadian banks. The balance from there is likely very limited in terms of our requirements. Like we mentioned, this is tied to gold price as well, with the cashflow generation from TZ. Those are the various parts but to your point, at the moment, we're looking to keep it quite vanilla. We have other very interesting proposals that we're evaluating.
Tejas: Yes, so we've had a lot of inbounds and we have a lot of options in front of us.
Tejas: So I mean, the thinking at this point as we.
Tejas: We have equipment financing that is available to us with the equipment that we're purchasing.
Tejas: So we'll likely be having a component that's tied to that.
Tejas: The other piece that will figure in our financing package will be essentially a corporate revolver with.
Tejas: Canadian banks.
Tejas: From there.
Tejas: Let me see.
Tejas: Very limited.
Tejas: In terms of our requirements.
Tejas: Like we mentioned.
Tejas: Gold prices.
Tejas:
Tejas: Cash flow.
Tejas: So those are the variables.
Tejas: At the moment, we're looking to keep it.
Tejas: Hum.
Tejas: But we have other very interesting proposals that were worried about.
Tejas: Yeah.
David Brown: Okay. Well, that's great. I will sign off and let others ask questions.
Tejas: Okay.
Tejas: Yeah.
Tejas: I'll sign off and let others ask questions.
Operator: Your next question comes from the line of Anita Soni with CIBC. Your line is open.
Speaker Change: And your next question comes from the line of Andy does Sony with CIBC. Your line is open.
Anita Soni: Yeah, I just wanted to get a little bit more color on the amount of, you said the throughput rates have been excellent. Have you gotten to basically the nameplate subsequent to the liner replacement and how is that? It's been almost half the quarter at this point, so can you just tell us how it's going, I guess, in terms of numbers?
Speaker Change: I just wanted to get a little bit more color on the announcer.
Speaker Change: Okay.
Speaker Change: Excellent. Thank you.
Speaker Change: Yes basically.
Speaker Change: Basically the platelets.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: I would now.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you for those numbers.
Louis-Pierre Gignac: Yeah. For example, May to date, we're at like 108% of nameplate.
Speaker Change: Yes.
Speaker Change: For example data.
Speaker Change: Hum.
Speaker Change: Where we're at 108% delinquent.
Anita Soni: Okay.
Louis-Pierre Gignac: That's showing a continuous run since the liner change.
Speaker Change: So.
Speaker Change: Sure.
Speaker Change: Brian.
Speaker Change: Since the launch.
Anita Soni: All right. I think Mike asked this a little bit, but I just wanted to get a little bit more color as well. In terms of the liner replacement, is that going to necessitate an accelerated maintenance schedule or any implications sort of longer term in that 90% availability if you're having to take more downtime than you had previously forecasted? Are there other offsets or is the mill performing, as you mentioned, 108%, is that better than your budgeted expectations and that'll offset any other additional downtime?
Speaker Change: Great.
Speaker Change: I think Mike asked this a little bit.
Speaker Change: A little more color.
Speaker Change: In terms of the <unk>.
Speaker Change: Liner replacement is that you can get.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: The accelerated maintenance schedule or amplification.
Speaker Change: Sort of longer term.
Speaker Change: About 90% availability.
Speaker Change: By taking more downtime.
Speaker Change: Great.
Speaker Change: Or are there other brands are.
Speaker Change: So that's enough for me.
Speaker Change: As he mentioned one.
Speaker Change: 100%.
Speaker Change: Congratulations on the model.
Speaker Change: Okay.
Speaker Change: Yes.
Louis-Pierre Gignac: Far this is, if we can maintain that'll offset some of the downtime we had in April as part of this quarter. Typically the liners we change, the schedule change is anywhere from 6 to 9 months on this SAG mill. That's part of our scheduled downtime.
Speaker Change: Yes, so so yeah so far.
Speaker Change: If we can maintain that.
Speaker Change: That will offset some of that.
Speaker Change: The downtime we had for this quarter.
Speaker Change: And then.
Speaker Change: We changed the schedule changes.
Speaker Change: Six to nine months on the signal.
Speaker Change: So thats part of our scheduled time.
Anita Soni: Okay.
Speaker Change: Fine.
Louis-Pierre Gignac: When you get a typical performance that you expect.
Speaker Change: When you get it.
Speaker Change: Right.
Anita Soni: All right. The unplanned portion of what happened in Q1 was that you didn't have the replacement liner? Is that what happened?
Speaker Change: Okay.
Speaker Change: Question number two.
Speaker Change: <unk>.
Speaker Change: Yes.
Speaker Change: Minor.
Louis-Pierre Gignac: Correct
Anita Soni: I'm just wondering why there was unplanned downtime in Q1.
Speaker Change: Hi, good morning.
Speaker Change: Downtime.
Louis-Pierre Gignac: Yeah. Because we had to replace Poly-Met liners that were damaged with additional Poly-Met liners. It was a question of receiving the steel set so we could make the full change. That was the reason for that period of running with the Poly-Met liners.
Speaker Change: Yeah, because we have.
Speaker Change: Two.
Speaker Change: To replace polymer lineups that were damaged.
Speaker Change: Hollywood liners.
Speaker Change: So it was a question of receiving the skill set so we can make the 14.
Speaker Change: Even for the.
Speaker Change: That.
Speaker Change: With deployment.
Anita Soni: Going forward, you'll have more spare Poly-Met liners on site so that you don't have the unplanned downtime. Is that correct?
Speaker Change: And then one for Don.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So you don't have to the unplanned outage.
Louis-Pierre Gignac: Well, at this point, we're always going to be using steel set liners.
Speaker Change: Well.
Speaker Change: We're always going to be used.
Anita Soni: Okay.
Louis-Pierre Gignac: So when we change-
Speaker Change: When we changed the liners come six months from now it'll be a necessity.
Anita Soni: Right
Louis-Pierre Gignac: the liners come 6 months from now, it'll be another set of steel set liners.
Speaker Change: You bet.
Anita Soni: Okay. Yeah, I guess I'm more referencing the availability of the parts for the replacement.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: Referencing the availability of the partnership.
Louis-Pierre Gignac: Yeah. No, we had the parts. It's just a question of you need to shut everything down to go in and change them out.
Speaker Change: Yes parts, it's just a question.
Speaker Change: So everything else is going to change.
Speaker Change: Changed.
Speaker Change: So.
Anita Soni: All right. Okay. Thank you. That's it for my questions.
Speaker Change: Alright, great. Thanks for the question.
Speaker Change: Okay.
Operator: Your next question is from webcast. It is from Steven Therrien with 3L Capital. Do you still plan to spend 41% of total growth capital at Oko West in H1, meaning approximately $65 to 75 million spend in Q2?
Speaker Change: And if you go back to that.
Speaker Change: First one on your telephone.
Speaker Change: And webcast.
Speaker Change: Any other questions.
Speaker Change: Any function.
Speaker Change: Your next question is from Jeff.
Speaker Change: Steven.
Speaker Change: Yes.
Speaker Change: L capital.
Speaker Change: And what percent.
Speaker Change: Guerilla capital at Oakdale West.
Speaker Change: Eight one.
Speaker Change: Approximately 65 to 75 and Q2.
Louis-Pierre Gignac: Well, it'll likely be a little less and pushed to H2. The reason being is it's just a timing thing, where we order equipment and materials and by the time we need to make payments. Yeah, that'll likely be a little pushed to H2. For example, we spent $17 this quarter. We'll likely be going up Q2, but not hitting that amount. It's really just tied to timing.
Yeah.
Speaker Change: It will likely be a little less.
Speaker Change: Pushed.
Speaker Change: Second.
Speaker Change: And Louise.
Speaker Change: <unk>.
Speaker Change: It's just that.
Speaker Change: Thing, where we ordered.
Speaker Change: <unk> materials and by the time, we need to make payments.
Speaker Change: So yes.
Speaker Change: That'll likely be pushed to the second half.
Speaker Change: Even like.
Speaker Change: <unk> 17 this quarter.
Speaker Change: We'll likely be going into the second quarter, but not to do that.
Speaker Change: Okay.
So it's really just timing.
Operator: Thank you. We do have one more question. One moment, please. Question from Samir Mohammed. Why was the gold recovery rate with 88% lower in Q1 than in Q4?
Speaker Change: Thank you.
And we do have one more question.
Why no mistake.
Amir Muhammed: Amir Muhammed.
Amir Muhammed: Why was the gold.
Amir Muhammed: With 80%.
Amir Muhammed: Q1, thank you for it.
Amir Muhammed: Okay.
Louis-Pierre Gignac: There's no particular reason. The recovery is a bit lower when we have soft oxide material in our mill feed mix. That's been typically the reason for some of the lower recoveries that we get. Generally, the plant has been having a good recovery.
Amir Muhammed: I mean, there's no particular reason.
Amir Muhammed: The recovery.
Amir Muhammed: When we have.
Amir Muhammed: Oxide material.
Amir Muhammed: Thanks.
Amir Muhammed: So that's typically the reason for for some of the lower.
Amir Muhammed: The lower recoveries that we get.
Amir Muhammed: But generally.
Amir Muhammed: So it has been having a good recovery.
Operator: Thank you. I am not showing any further questions in the queue. With that, ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Amir Muhammed: Thank you I'm not showing any further questions in the queue.
Amir Muhammed: With that ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.
Amir Muhammed: [music].
Amir Muhammed: Yeah.
Amir Muhammed: Okay.
Amir Muhammed: [music].
Amir Muhammed: Okay.
Amir Muhammed: [music].
Amir Muhammed: Yes.
Amir Muhammed: Yes.
Amir Muhammed: [music].
Amir Muhammed: Yeah.