Q1 2025 Aya Gold & Silver Inc Earnings Call
Speaker Change: Good morning. I want to turn the call over to Celicia Ilias, Aya Gold & Silver's Investor Relations Officer. Please go ahead.
Speaker Change: Thank you, Operator, and welcome to everyone who has joined Aya's first quarter, 2025 by Burning's Compense Call.
Salisha Elias: Here with me today, I have Benoit Salle, President & CEO , Ugo Landry Tolls Chuk, Chief Financial Officer
Elias Elias, Chief Legal and Sustainability Officer.
Speaker Change: Raphael Beaudoin, Vice President of Operations, and David Lalonde, Vice President of Exploration.
Speaker Change: We will be referring to a presentation on this conference call which is available via the webcast and is also posted on our website. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release and MDNA as well as the risk factors included in our annual information form.
Speaker Change: Technical information in this presentation has been reviewed and approved by Raphael Beaudoin, Aya Vice President of Operations, and David Lalonde, Aya's Vice President of Exploration, both of whom are Aya's qualified persons as defined under National Instrument 43-101 Standards of Disclosure for Mental Projects.
Speaker Change: I would also like to remind everyone that our presentation will be followed by a Q&A session. With that, I would now like to turn the call over to Benoit Lassau, Benoit.
Benoit Salle: Thank you, Celicia. Welcome everyone to this Q1 2025 earnings call. I would refer you to the power point that we have the presentation on the first page that you see now. You see the plant.
Benoit Salle: that was billed last year, that was Commission on December 30th, 2024, and for which the ramp-up started in January , so Q1 2025 is the first quarter of the beginning of the ramp-up.
Benoit Salle: The plant was built on budget, it was commissioned on time, it was delivered to us a little bit later than expected but it was commissioned on time and Q1 is the first quarter of this brand new plant operation.
Benoit Salle: You have on page two and three the four looking statement and on page four we have the highlights of Q1 2025.
So this Green Bear Mine expansion ramp up continues to give us...
Improvement in production, in cost reduction in cost [inaudible]
Benoit Salle: It is a very smooth rampant, it's only three months.
Benoit Salle: So you know that in our industry, ramp-ups can go above one year, here we're in the first quarter of the ramp-up.
Benoit Salle: We've had for Q1 significant improvement in our goal production, our goal production is that 1,069,000 ounces, which is obviously a lot more than the previous quarter.
Benoit Salle: also very important in Chiu One is the Open Pit or Mind Equal Approximity 68% of the Corps or Mind during the Corps, reaching our targets.
Open Pit, Slash Underground, Split.
Benoit Salle: You know, when we do talk to you regularly, we talk about 70%, 30%, 70 open, 30% on the ground, that's the shift that we did in the Q4 and now are implementing Q1, we are there now at 68% at 40 average of Q1.
Benoit Salle: as well the stockpile which we put together over the last two years.
Benoit Salle: was at the beginning of the year, 300,000 ton of ore. Well, at this...
Benoit Salle: Quarter N, The Stock Bile is at 281,290 tons. So this is a buffer for the plant as we are bringing the open fit and the underground to the 3,300 ton per day needed to feed the plant.
Benoit Salle: throughput and mill availability are good, are actually extremely good, throughput exceeds already name plate capacity and mill availability are in the high 90s so we're in a very good position.
Benoit Salle: Recoveries are still where we need to work and we are working. We have identified the reason why the recoveries in Q1 were at 82% knowing that in the feasibility study it should be at 89%.
Benoit Salle: and the Oxygen Plant, which was designed and built by our EPC contractor.
Benoit Salle: It has not yet been working at its capacity, it's been having some issues but we have
Ben, you know, working on it, it's been six as we speak.
Benoit Salle: and this will bring the recoveries to the level that we expect. You recall that our guidance for the year is mid 80s to 88.
Benoit Salle: So we know that we're moving up from the 82 where we are right now so we understand why the recoveries were lower or are you know into one and we also have been working on you know correcting the origin plant and that is as I said is being done as we speak. [inaudible]
Benoit Salle: So globally when we look at the company we had a very good quarter as a ramp-up quarter with the million
Aya Gold & Silver
Benoit Salle: We will show you that we have a profit, we have a positive cash flow.
Benoit Salle: But one element that's been coming back to us is our cash position. And as of today I am pleased to tell you that with the cash and the restricted cash at 37 million and you have looked at our financial statement you saw that we had at quarter end 11 million of accounts receivable. This was a sale that was done on the last day of the quarter which was collected a few days.
Benoit Salle: in the next quarter because as we sell in Geneva very quickly we're paid within a few days.
Benoit Salle: So when you look at that, the 37 million of cash and restricted cash plus the 11 million of accounts receivable puts us in a very comfortable position on a cash basis.
Benoit Salle: Further more to this, after the quarter end, we have agreed with EBRD, our main and only banker.
Benoit Salle: on a 25 million dollar, 25 million U.S. dollar credit facility.
Benoit Salle: which has been accepted at EBRD Board, at IS Board and is being put in place. So when you look at the 37 million
Benoit Salle: When you look at the receivable that were cashed in within the few days and the additional 25 million vicinity, our liquidity position is extremely, extremely good.
Benoit Salle: On the exploration front, as you know, Aya is always an exploration story. I mean, yes, we are in production as Gundaire, but the potential of Gundaire Regional and the potential of Gu Majim is so unique that people are looking at us with the understanding the upside, so we have drilled.
Benoit Salle: At the Gumbair, close to 3000m at the main structure, on the main structure, and a 1000m on Gumbair Regional. I was there last week on site. We reviewed this Gumbair Regional target, and it's, you know, Gumbair will be, the regional will be a very interesting.
Benoit Salle: Program this, you will have a very interesting program this year as we're seeing many, many new targets.
at Bumaddin, which is our big project.
Benoit Salle: which is continuing to give, we've completed a very impressive 46,000 meters of drilling in Q1, on a program of 140,000 meters of drilling. As you know, we always set the program in a very conservative way based on results. We looked at how much more drilling we need, but in Q1 we did 46,000.
meters of drilling at the Bumadidn. [inaudible]
Benoit Salle: We've also had boom ads in published a mineral resource update which was extremely positive adding 100 million ounces of silver equivalent.
Benoit Salle: On the ESG front, it's always a priority for us. We, you know, health and safety is a major concern to our operation. It's part of our...
Benoit Salle: Values and we've had another stellar quarter and 100% of all the incidents are analyzed and we always make sure we get better and we in the quarter also gave 2,364 hours of training.
And that is something that we take very seriously.
especially now that we're increasing the number of employees.
Benoit Salle: on the Corporate Social Responsibility. We've also expanded the tutorial program to the local communities. We do this all the time, and we begin a new community engagement project where the local communities present their program. We have a committee made of local representative and company representative, and we select.
Benoit Salle: <unk> for Us and you see that we've we've done extremely well comparing Q1 2024 to Q1 2025 now in our ramp up the plant is working extremely well. So the plant is was at nameplate capacity within a couple of weeks, it's now steady above nameplate capacity.
And you see this on the <unk> process.
Benoit Salle: On the right hand side at the top you have the average grade for Q1 2024, and the Q1 2025. The grade is something that we're working on it's the.
Benoit Salle: The grade issue came mainly from the underground we are addressing this and you will see great improvement over the coming quarters. This is of all the Kpis. This is the one that we're working on now obviously in the ramp up we do take ore from the stockpile you saw we took a similar.
Benoit Salle: From the stockpile and the stockpile runs at about 150 Gram per ton. So that's something normal and while the recoveries are not where we want them to be in the high eighties, it's normal to have a little bit lower grade, which we have at this time on the up to compensate for that.
Benoit Salle: The plant capacity is exceeding nameplate, which is compensating for currently for the lower grade that liquidity through the plant.
Benoit Salle: On the bottom left hand side, you have your silver production, obviously, a major change here.
Benoit Salle: From Q1 2020 forward to Q1 2025, we understand this is the new plant.
Benoit Salle: Got it.
Benoit Salle: Its ramp up phase, but we're still it's showing.
Benoit Salle: The above a million ounces of production the average net realized price when from 'twenty. Two to 230 187 now a major difference in 2025 is with the new plant, we do not produce a concentrate anymore, whereas in Q1 2024.
Benoit Salle: We were <unk>.
Benoit Salle: Producing a concentrate which was sold was not giving us a 100% of the metal value at more like 85% of the metal value now.
Benoit Salle: We do not produce a concentrate anymore. So the 1 million ounces.
Benoit Salle: That was sold in Q1.
Benoit Salle: It was mainly in <unk> and in Q2, it will be 100%.
Benoit Salle: That's fair.
Benoit Salle: For the company and as a net realizable silver price, it's much better there.
Benoit Salle: The cost per ounce is something that we've guided that we'll be below much below 18, but in Q1 last year and in Q1. This year. It is a small improvement again in the.
Benoit Salle: Ramp up periods, it's normal we do have too many people still have on site and it's something that we're addressing but the priority is really to get the plant to be above nameplate and steady and its kept at its new tonnage is to get the grade back up to get the recoveries back up and.
Benoit Salle: All of that will push that cash cost down.
Benoit Salle: Then coming to page seven of the press.
Benoit Salle: Foundation we.
Benoit Salle: We are confirming the guidance for this year. So the guidance that was presented to you last.
Benoit Salle: March for the financing of the 2024 financial results. So the guidance is the same with the silver production between five and $5 3 million ounces for this year, we will exit the year.
Benoit Salle: On the $1 5 million per quarter. In Q4. This is our objective. This is our goal to be at 1.5, the cash cost will be between 15 and $17 five.
Benoit Salle: In this case the sustaining capex is very small so on the <unk> you have to add about $1. One dollar and have only two the total cost year their recoveries is something we've discussed.
Benoit Salle: The guidance is between 84% 88 feasibility study, we're saying it should be around 91. Our goal is to really be on a consistent basis around 80 990.
Benoit Salle: And hopefully push that even higher.
Benoit Salle: The focus is on this as on the underground grade and on the recoveries.
Benoit Salle: Guidance for the year is that the grade globally should be between $1 70, and 200 Gram per tonne were seeing some higher grade pockets that we will be attacking this year as well, which will be part of the production going forward.
Benoit Salle: And the exploration is always so important.
Benoit Salle: Wouldn't that in a boom.
Benoit Salle: The exploration program.
Benoit Salle: <unk> is between 25 and $30 million in meters, it's around 160 to 180000.
Benoit Salle: Meters of drilling.
Benoit Salle: Also.
Benoit Salle: Go back to the drilling cost in Morocco, the drilling costs are extremely reasonable.
Benoit Salle: We're seeing drilling costs between $1 25, a meter to $1 60, a metered, depending where we are and.
Benoit Salle: What project initiatives, if its core or diamond drill or if its RC drilling, but the costs are extremely extremely reasonable.
Benoit Salle: Looking at the financials I think it's very very interesting to see Q1, 2025 with revenue of $33 million of Greg.
Benoit Salle: No.
Benoit Salle: When comparing to Q1 2024, but Q1 2010 before was just the old plant now we have the new plant. So it's hard to compare but these are record.
Benoit Salle: Revenue, it's a record quarter on every line the gross profit at $10 million. The operating income at three three the net income is almost $7 million and the operating cash flow is at 7.8, 93, or $7 9 million and <unk>.
Benoit Salle: <unk>.
Benoit Salle: It's a robust quarter et cetera. These are robust result.
Benoit Salle: In a first quarter ramp up and again I come back to this because often we seem to forget that it's like a little baby, where one year old we're learning to work and people will say, yes.
Benoit Salle: Is that running or she's not running fast.
Benoit Salle: It's like one year old here, where three months old we're running this is running well above nameplate.
Benoit Salle: It does take time to.
Benoit Salle: Become smooth.
Benoit Salle: Consistent.
Speaker Change: <unk> to be a higher recoveries to be where they need to be and costs will be coming down but this is where we are its build its well build we have identified the reason for the recoveries and we are working on that and Youre in a position where we're already profitable Q2, Q3, Q4 will be even better at.
Speaker Change: Production goes up as the cost will come down so we expect the coming quarters to look even better but this quarter here.
Speaker Change: Generation seven.
Speaker Change: $87 9 million of operating cash flow so going on the bottom part of this slide you see that the cash and restricted cash is at 36 that receivable that we kept pretty enel, let me explain to you why this isn't there because we do want to beat the average price.
Speaker Change: Of the silver market. So we are very choosy on how we sell our silver because we have liquidity. We are well funded so we don't need to rush. So we build inventory in Geneva, we have the silver available for that transaction and we sell it normally by moving them.
Speaker Change: Market.
Speaker Change: We'll price it above market.
Speaker Change: And we wait for the market to move up and come and hit.
Speaker Change: The bids to come in at our offer and we're offering metal it's not paper silver.
Speaker Change: Metal, it's identified as such and we normally beat the average of the month or average of the quarter. So if you look at the average realized price by <unk>.
Speaker Change: And compare that to average silver price of the quarter, we beat it.
Speaker Change: And that is being very disciplined on how we sell it.
Speaker Change: <unk> excuse me the reason is.
Speaker Change: We sold last day of the quarter.
Speaker Change: A large amount of silver and that created a receivable, which technically and we sold it three days before it would all be in and the cash balance.
Speaker Change: And as I said, the <unk> credit facility of $25 million.
Speaker Change: That is done and we need to finalize the documentation, it's been approved and with this we.
Speaker Change: Are in a position where total liquidity available for the company is about $73 million. So we are very comfortable going forward.
Speaker Change: For the year and next year.
Speaker Change: They're keeps generating.
Speaker Change: Strong cash flow.
Speaker Change: The exploration program as I've mentioned to you you see the drilling here on page nine and we have two large domains <unk> Ziff and boom. It when those are our main two domain and the drill program is good there at the mine will be between 10 and 15000 meat.
Speaker Change: <unk>.
Speaker Change: At <unk> it will be between 100 and 140, but we're already at 42 so.
Speaker Change: You can imagine that this will continue as it continues to give.
Speaker Change: Very very good result.
Speaker Change: <unk> zone. This quarter was increased from two kilometers viewpoint.
Speaker Change: We have lots of targets to the north of the main zone, we're drilling the south as well, we're continuing to drill in the south.
Speaker Change: Some eastern extension and this project will just continue to grow as it has in the past two years. So we're continuing there and we're also adding additional ground on a regular basis.
Speaker Change: The original very interesting adjuvant as you know.
Speaker Change: Add another structure, where we have another source of ore, we will be able to push the plant higher currently we're limiting but we're limited by the amount of ore that we can take out in the main structure.
Speaker Change: So we're drilling 10000 meter.
Speaker Change: On their regional where we've done detailed mapping we have identified many targets and we are looking at some specific area, where we're seeing silver at at surface. We have grabbed samples we're seeing gold.
Speaker Change: So it's very encouraging what what's going on right now that's been their regional.
Speaker Change: My name is.
Speaker Change: The Spinout, which completed the amex to mining company is now a stand alone.
Speaker Change: We had our first board meeting the board has in place the financing closed the $16 million and MF.
Speaker Change: <unk> two is now.
Speaker Change: On its own as the.
Speaker Change: Chairman, Rick Clark and the team.
Speaker Change: I think there they are picking up but not I think I know what they are picking up a lot of ground.
Speaker Change: In Morocco, there looking at different projects and.
Speaker Change: As well they have the <unk> project, which is very interesting. So thats a done deal for us we own 42% of it we're going to watch them develop this over the next few years.
Speaker Change: We are extremely pleased with the Spinout and.
Speaker Change: It just makes it.
Speaker Change: It gives management more time to focus on is going bad when their regional and on boom.
Speaker Change: On page 10, it's something you signed February is it's in Q1, it's the updated resource model for <unk>.
Speaker Change: <unk> keeps giving its when you look at the.
Speaker Change: Silver ounces equivalent it's 450 in total when you add indicated and inferred but it's.
Speaker Change: It's very good grade, it's close to 500 gram per tonne.
Speaker Change: <unk>, a very robust project.
Speaker Change: We have such that tip of the iceberg on the main structure, which is the <unk> structured the main structure, we've drilled it down to 600 meter, but we we did the resource calculation going down to 250 meters.
Speaker Change: It's got an extension to the North. It's also has an extension to the south it's got extension at depth, but at surface already we're looking at 450 million ounces. If you prefer that in gold equivalent it's like 5 million ounces of gold at five Gram per ton. So it is a very strong.
Speaker Change: <unk> tier one asset in a tier one country being.
Speaker Change: Being developed.
Speaker Change: Often the question is is it going to be open pit underground you saw.
Speaker Change: See on the slide it's about 50 50, 49%. We say is constrained 51 is underground so.
Speaker Change: And in Morocco underground mining is not an issue underground miners are available the cost of underground mining is extremely low compare to Canada or the world and of course open pit is also straightforward and quite easy.
Speaker Change: So we are drilling this.
Speaker Change: We've already drilled 200000 meters that we're continuing to we're continuing to drill and this project is a project that we want to push towards production.
Speaker Change: And we are working on.
Speaker Change: On each phases of the PPA, but as long as we keep drilling and we keep finding well the size of the plant and the flow sheet has not yet been decided.
Speaker Change: This is we always say this is like the magic.
Speaker Change: Map are the secret map this is the geophysics.
Speaker Change: We might.
Speaker Change: In the Middle you see the main permits you see the main structure and then you see all these other targets that we have and we currently own about 700 square kilometers of ground at <unk> is already a mining permits. So it is ready to go we've done all the work we have started that.
Speaker Change: Chapter of the PPA to because for us to be convinced on exactly where we're going to put in the daily, whereas the water coming from where is the power coming from knowing that the grid is at sites of the power is coming from the grid, but it is a unique project with tremendous potential and you see this.
Speaker Change: East.
Speaker Change: West structure at the bottom is 21 kilometer along is giving us and grab samples copper and silver is different than the main zone, which is north south which is more gold silver lead and zinc the bottoms of the north east structure and there is a few that you can.
Speaker Change: See on this map.
Speaker Change: Our more copper and silver and.
Speaker Change: So the east West are copper and silver and the north South our gold and silver so very interesting land package. We are looking to add the little pieces that are missing we are the only player in the area.
Speaker Change: Because we have most of the land we have the team there we have a very large team. The exploration team there is a little bit more than 200 people.
Speaker Change: There is between 12 and 14 drills turning.
Speaker Change: It's a large program, but that's that's giving some very very good results.
So in recent development I touch on a few.
Speaker Change: We chose the Nx two transaction in the quarter.
Speaker Change: <unk> transferred.
Speaker Change: Into Amex do so that's done as I indicated we owned 42% and two.
Speaker Change: Two of us myself and <unk> CFO sit on the board at the board that makes too and it's.
Speaker Change: It will have a life of its own and with strong shareholders. Good good funding $16 million and some very good assets.
Speaker Change: <unk> also announced last Friday.
Speaker Change: April production.
Speaker Change: Which we show continued progress we're showing very good plant availability very good throughput very good mine.
The throughput so mining production was good at the plant and was good availability was excellent and again.
Speaker Change: The element we need to work on is the recovery, but we explain why.
Speaker Change: We explained that last Friday as well that.
Speaker Change: The main issue is the oxygen plant, which was mechanical and thats being fixed.
Speaker Change: And last but not least is our partnership with <unk> that goes way above or beyond the $25 million credit facility <unk> is our lender.
Speaker Change: Good there we have 100 million construction for synergy with them. We've already started the discussion that this should probably get transferred into more of a long term debt and not a construction facility and thats something that they understand that we're going to be looking at in the coming months in the second half of the year.
Speaker Change: <unk> and the $25 million is the credit facility just to give us additional liquidity, though we have.
Speaker Change: Close to $40 million of cash and restricted cash and the restricted cash is with <unk>. So we're all it's all the same family and they have also indicated that they will support any initiative that we have in Morocco, including boom edge in any other project that we want to look at any other asset.
Speaker Change: So <unk> is our long term financial partner in Morocco.
Speaker Change: They support the country to support.
Speaker Change: And they absolutely like.
Speaker Change: To work with us and the way we work with our ESG values going forward. So it's these are great development that just occurred.
Speaker Change: <unk>.
Speaker Change: The quarter.
Speaker Change: And so what's coming.
Speaker Change: The drill program is clearly ongoing with what we've done at Doom and gloom. There. So that is being done and it will continue throughout the year. We are working steadily on the PVA Ado medicine. The chapters are being completed the environmental chapters are just about done.
Speaker Change: And there is more work being done on the PPA as I said the right sizing of it is not yet all done because it's.
Speaker Change: It's 450 million ounces right now of silver equivalent, but we keep finding so we will see at one point, we're going to stop the resource and we'll do a phase one.
Speaker Change: Just to see where we are in.
Speaker Change: Also bring in the metallurgical aspect of it which is being worked on as we speak and we're we've already identified all of this is.
Speaker Change: Solution for metallurgy.
Speaker Change: Next catalyst is 3000 tonnes per day at <unk>. There. We are there this is ongoing.
Speaker Change: The ramping up is in steady state it was a great quarter in Q1, we're continuing into Q2. It is a ramp up so yes, we.
Speaker Change: We do have to fix the oxygen plant and yes, we're changing a few pumps to make the plans even more efficient <unk> and his team are looking at all aspects.
Speaker Change: Bugging certain small parts of it to make it even more efficient and though we wait we're way above nameplate capacity at the plant well build it.
Speaker Change: And a great area, where we're not.
Speaker Change: Stuck with water or rain or rainfall or snow or winter.
Speaker Change: A winter and ice.
Speaker Change: It is beautiful, it's an area, where you have got Sunshine more than 300 days a year and the plant is working extremely well. So we will provide a midyear <unk> update which will come in the second half of the year and we're working on which will.
Speaker Change: We include all the chapters of the PPA.
Speaker Change: And we're also finishing some drilling on the main zone and we're still hitting as you see when we put out the press releases very good grades and very good bucket. So we are working on and use when theyre planned on the <unk> model and a new technical report, which will be available before the end.
Speaker Change: Of the year.
Speaker Change: So this completes.
Speaker Change: Presentation, I would like to turn it over.
Speaker Change: Back to the operator for the question period. Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder to ask a question Thats Star one one.
Speaker Change: Once again Thats star 101 to remove yourself from the queue. Please press star one again.
Speaker Change: One moment, while we compile the Q&A roster.
hospitals Chu: Our first question will come from the line of hospitals Chu from CIBC. Your line is open.
Speaker Change: Thanks, gentlemen.
Speaker Change: And congrats on a very solid Q1.
Speaker Change: Maybe my first question is on your balance sheet too.
Speaker Change: To confirm <unk> as you mentioned, there was $11 $6 million in receivables at the end of Q1, which were related to sales that were made at.
Speaker Change: At the end of Q1 shipments into Q2.
Speaker Change: Was the entire $11 6 million received in Q2.
Speaker Change: So if I were to look at your cash balance I just take your Q1 <unk>.
Speaker Change: Quarter cash balance on at 11 six.
Speaker Change: Cosmos. Thank.
Speaker Change: Thank you for the question, yes, so the $11 six was a receivable at the end of Q1. So it was so it was booked as a sale in Q1, because it was sold except the money was not yet transfer because theres a couple of days.
Speaker Change: With our refiner, where we.
Speaker Change: There is a process and we have to wait a few days. So the money was indeed received in the first few days of Q2 and it is it was in our cash balance now knowing now that we do produce over 1 million ounces per quarter.
Speaker Change: You have a lot of receivable you have a lot of rollover, but normally we would try to sell the week before the quarter end. So we book the sale and we have the cash in the bank, but again as I indicated.
Speaker Change: We are waiting for the right price I mean, sometimes 50 or one dollar to develop volatility is so high that we wait for $33 33, and a half enhanced that created this kind of discrepancy at quarter end of a very high receivable, which was converted into cash.
Speaker Change: In the first few days, but the $11 million is in the sale of Q1, and it's just not in the cash.
Speaker Change: It's in the receivables.
Speaker Change: I just wanted to make sure that the entire $11 6 million essentially plus minus.
Speaker Change: It can be viewed as cash thank you.
Speaker Change: Firmed up.
Speaker Change: So for me.
Speaker Change: And then maybe on the balance sheet as well as you mentioned, Ben what you have another $25 million line of credit.
Speaker Change: From E B R D.
Speaker Change: As you mentioned I think it's been approved but you still need final documentation. So in terms of timing Wanking you. If you need to when can you start drawing on that line of credit when does it become available to you and in terms of the terms around that additional facility.
Speaker Change: I don't think I've seen any details yet.
Speaker Change: Are there any details you can share with us at this point in time or how does that compare to the construction facility that was put in place by <unk>.
Speaker Change: A few weeks back.
Speaker Change: Okay.
Speaker Change: Over to you.
Cosmos: Who did all the negotiation with us and he can give you the real all the detail on the timing of it cosmos and but yes, we have all the information that we can sure so hi cosmos.
Speaker Change: Yes.
Speaker Change: Thanks, good thanks, so we've.
Speaker Change: We've secured and so it's gone through approval that would be.
Speaker Change: <unk> so now.
Speaker Change: We have to do the documentation.
Speaker Change: We our objective is to have that done before the end of Q2, and then it would be available to draw corporate loans. So its a loan to Canada, we're providing some security we're providing some security on some of our subsidiaries.
Speaker Change: In <unk>.
Speaker Change: In Morocco.
Speaker Change: <unk> already has a lot of the securities anyway, because they're there a secured creditor out on <unk> in terms of the in terms of the the loan parameters. It's very similar to our construction loan I think we announced that so its two year term bullet payment at the end.
Speaker Change: And the interest rate is.
Speaker Change: It's exactly the same as our construction loans, so social plus five.
Speaker Change: Great. Thank you.
Speaker Change: Maybe switching gears a little bit.
Speaker Change: Great.
<unk> and team.
Speaker Change: Very solid in Q1 163 gram per tonne.
Speaker Change: But in your April numbers might have dipped a little bit again.
Speaker Change: So I guess two parts to my question number one.
Speaker Change: Targeting a 170 to 200 gram per tonne.
Speaker Change: Your average for the year to get to your guidance could you maybe talk about.
Speaker Change: To the part where you can share with us what that quantum of increase to be like when are we going to start seeing the 170 or even 200 Gram per ton is it Q2 or is it Q3 Q4, and then going back to the month of April what happened.
Speaker Change: That caused a little dip once again in April was it again as you've talked about them, while the underground performance.
Speaker Change: Or anything else you can share with us.
Speaker Change: Yes, well look at Cosmos.
Raphael Beaudoin: I will defer over to Raphael.
Raphael Beaudoin: In Morocco as you always on always on site any overseas operation and Youre right. The April grade was a little bit lower and then maybe <unk> would you comment on why April and as well.
Raphael Beaudoin: What's what kind of improvement.
Raphael Beaudoin: Seeing with the team going forward knowing that for Q4, our objective is to be around 200, and the open pit and probably $1 70 in the underground so but that being said there are fine I'll pass it over to you.
Raphael Beaudoin: Hello.
Raphael Beaudoin: Okay, maybe we love.
Raphael Beaudoin: Okay. So I guess, we'd love for that Thats right.
Speaker Change: He is he's onsite.
Raphael Beaudoin: So but yes.
Raphael Beaudoin: Always onsite I was with them three weeks ago. So I get a test that is yes, yes, and then the internet is good onsite so it shouldn't be.
Raphael Beaudoin: It will be done it should be there.
Raphael Beaudoin: That being said look in April.
Raphael Beaudoin: The issue is that with the open pit the open pit we have three meters spacing on the drilling we're very precise.
Raphael Beaudoin: We know exactly what we're mining where we're mining at the underground is where because of the spacing at 12 meters spacing.
Raphael Beaudoin: We are making.
Raphael Beaudoin: Sometimes the wrong decision on <unk>.
Raphael Beaudoin: Dilution are missing the structure. So we have that we are addressing this.
The open pit doesn't need any addressing the open pit is as you know we're in the top level.
Raphael Beaudoin: As we discussed in Q1, we did it at one point a couple of zone of oxide. So that had a small effect on our recovery, but that's not permanent and Thats just the top layer. The open pit is hitting the grade that we're looking for this deposit as some pockets of very high grade material. It's got some lower.
Raphael Beaudoin: Great area. So look we're still comfortable that in every quarter the grade will improve.
Raphael Beaudoin: This quarter it will improve and we are keeping our guidance between $1 70 and 200.
Raphael Beaudoin: We know that so far in may.
Raphael Beaudoin: The throughput at the mine is excellent.
Raphael Beaudoin: We're getting the tonnage out we haven't yet confirm all the grade but.
Raphael Beaudoin: Now that the recovery is kind of done it's not done because we're fixing it now, but we know the problem.
Raphael Beaudoin: Only our kpis left to for us to really focus on is making sure degrade falls in line and it will the budget is there.
Raphael Beaudoin: And we've done a lot of.
Raphael Beaudoin: Tests to make sure that it's all there it's just a mining it correctly and we're working on that so it will improve every quarter. The objective is in Q4 as I said to be around 200, and the open pit and hopefully 172 around there in the with the underground.
Speaker Change: I don't know if Rafael joined us yet, but I was going to also ask a question on recovery, 80% recovery.
Speaker Change: <unk> 84 to 88 in terms of the quantum of increase quarter over quarter could you give us a sense in terms of is that could that go up faster than the potential increase in grades given that you've identified the issue. It sounds like it's a mechanical issue.
Speaker Change: Can we see it hit say, even though our end of your guidance of 84%.
Speaker Change: So cosmos I'll pass it over to you go we sits on the production meeting every day and.
Speaker Change: Of course, it's a top top priority. So if you go and you want to yes.
Speaker Change: So.
Speaker Change: On on on recoveries.
Speaker Change: We have a very specific issue is on the phone.
Speaker Change: The oxygen plant, we have a repair team there currently as we speak and we have the equipment provider that's going to be on site as well. This month is it going to take two weeks or three weeks or four weeks to fix.
Speaker Change: Assessing that right now, but it's not the equipment in.
Speaker Change: It's repairable, so we're going to repair it and then once that's done we expect recoveries to go up one of the really important things for US was to ensure that we had no ore leaching issues. So we've bottle roll test that all of the all the tails. There's absolutely no issue, we've never had a recovery issue.
Speaker Change: <unk> and.
Speaker Change: So as soon as this mechanical issues solved with with dissolved oxygen.
Speaker Change: We expect recoveries to two.
Speaker Change: <unk>.
Speaker Change: To improve there's nothing suggesting that once this is solved but it will not be.
Speaker Change: Great.
Speaker Change: Why you go and team those are all the questions. Thank you.
Speaker Change: Thank you Cosmos.
Speaker Change: Our next question.
Speaker Change: Our next question comes from the line of Bryce Adams from <unk>. Your line is open.
Speaker Change: Good morning, Ben one thing thanks for the presentation and for taking my questions.
Speaker Change: The first one is on cash balances again, when does the restricted cash become available the disclosure. It talks about final completion of the expansion obviously, that's different to commercial production can you add color when that cash becomes available and at the same time I know it can swing around with working capital changes, but are you able to comment on that.
Speaker Change: Current cash balance as of mid May.
Speaker Change: Our cash balance as of mid May is.
Speaker Change: Basically what we've had what we had in <unk> as of the end of March plus plus our receivables and a bit of working cap. So it's.
It's similar it's similar to what we had.
Speaker Change: Ed.
Speaker Change: The end of March plus plus a few million dollars.
Speaker Change: And the restricted cash.
Speaker Change: That stays restricted until till until the end of the loan until the end of the loan.
Speaker Change: So it's a it acts as a debt service recovery accounts, so if ever for whatever reason.
Speaker Change: There wasn't some additional security for the secured creditors so if ever.
Speaker Change: It didn't have the cash to cover our bi annually.
Speaker Change: Interest and principal payments that we would use that cash to pay for that at that time.
Okay. Thanks, I had a different understanding but that clears it up.
Speaker Change: Second question is on the open pit mining rates, what's the size of the fleet today.
Speaker Change: Any trucks and loaders were added this year and from the site visit a few weeks ago. Thanks, very much for hosting us.
Speaker Change: Got the contract rates is $2 per ton wise and $4 per ton ore.
Speaker Change: Has that or does that change with further fleet increases that we're going to keep those rates potentially reduce with economies of scale.
Speaker Change: Yeah. So.
Speaker Change: So yeah on the costing thats about right, but that includes drilling blasting hauling analysis.
Speaker Change: So I think that's all in.
Speaker Change: And then as time goes in the fleet increases, we expect to see a little bit.
Speaker Change: Of cost improvement that in.
Speaker Change: As we've changed our plan here, we're in discussions with our mining contractor.
Speaker Change: As we speak on that.
Speaker Change: And you don't have any fleet.
Speaker Change: The fleet has increased.
Speaker Change: I don't know if ive as background you wouldn't notice by heart, but you go and I, we're not in that detail, but Brian. If you want you can drop us just a note.
Speaker Change: And also we'll forward that to happen and we will send you the answer back today.
Speaker Change: That'd be grant thanks, so much.
Speaker Change: One moment alright, thank you.
Speaker Change: Our next question comes from the line of Don Demarco from National Bank. Your line is open.
Don Demarco: Thank you operator, and good morning, Ben one team congratulations on a great quarter.
Don Demarco: So my first comment question is on throughput so throughput than running consistently above nameplate we.
Don Demarco: We see from the April update it was 3025 tons per day is this attributed in part because we've been processing some of that softer oxide ore and copper open pit.
Don Demarco: And with that as you get deeper in the pit would you expect the throughput currently normalized down to nameplate.
Don Demarco: Or 3000 tonnes per day, just kind of the new standard.
Speaker Change: Thanks, Dan for this question.
Speaker Change: Is the quality of the construction and we.
Speaker Change: And as I said from the beginning it's going to produce much more than the nameplate because it's just well built well designed it's extremely good equipment, we needed to go through the ramp up to two deep debug certain pumps and a few little items, which is totally normal but the throughput.
Speaker Change: At 3025.
Speaker Change: Is on the low end, we believe that we will be able to maintain more like 3200 going forward with with the plan that we have right now and then that Phil and his team are going to look at optimizing that because theyre little items that can be done few things it could be done and even.
Speaker Change: Push it even further but yes. So the throughput you are right we reach nameplate in two weeks and we hit it. We then did not hit it consistently now we are hitting it consistently above nameplate capacity and it will continue this way.
Speaker Change: Plant is very very well build very robust as you saw it its open air. So it's got a lot of room to maneuver. There is lots of room for maintenance and the oxide or the hard rock did not make much of a difference there.
Speaker Change: The capacity the.
Speaker Change: The jaw crusher in the cone crusher and all of that we have capacity, we even have spare parts capacity, we have a full cone crusher as a spare parts. We do have capacity to grow. So the plant is just build that way. We always knew it was build that way and as you know, we even build that bigger that at the right.
Speaker Change: Time, we can add another ball mill, two more tanks and really grow its capacity by probably another 50%. So it's the plants overbuilt oversized we knew it we know that the limiting factor is the mining we know that and that's why we're pushing so hard on the regional play.
Speaker Change: Fine we'd love to find a satellite pit and then be able to just push that plant even further.
Speaker Change: Mhm, Okay, well, that's great and it's certainly I saw the plant looks very well constructed and.
Speaker Change: I heard you talk about the expectation to increase recoveries is it fair to say to you.
Speaker Change: That increase in recoveries isn't going to compromise the throughput rate in any way.
Speaker Change: Not at all not at all.
Speaker Change: Recovery is a mechanical issue and we understand why we felt is there with a full team and we've done the test as Hugo said the Battle Road test, it's not related to metallurgy, it's really mechanical as sadly.
Speaker Change: And again when you use an EPC contract or you have some pluses and some minuses and it was a fixed price contract you remember it was a very good fixed price contract they've done a good job the plants that are robust.
Speaker Change: The plant the oxygen plant is the sub standard to what we would like to see and we're fixing it now and we were right. I mean, we have we tried to change it throughout construction, but we were not able to due to the nature of our contract and then now we're fixing it so it's really the oxygen plant thats caused.
Speaker Change: The recovery to be a little bit lower also.
Speaker Change: When you have when you are starting to ramp up we're putting some some of the stockpile through <unk>, which is a 150 gram per ton. So.
Speaker Change: We're not pushing any high grade material, if when we're going to get into the high grade zone of the deposit, which we have we will definitely want the recoveries to be in the top <unk> and not low eighty's, just because we don't want to sell.
Speaker Change: Silver to the to the tailings dam so the recovery is a separate issue.
Speaker Change: The plant is working very well and it will continue to work well and we have a very good crew on site that are operating this plant and then Theres. No look you saw we even take all the crushing and milling from the old flotation plant, we send that over to the new plan. There is no more concentrated being.
Speaker Change: <unk>, it's all now ingots and add the Merrill Crowe system is operating well, it's robust it's operating well. So there's no issue. It's now fixing the recoveries and making sure that the grade from the underground is where it should be and will be after the races.
Speaker Change: Okay.
Speaker Change: Great well, thank you for that and something else that we're looking at is the.
Speaker Change: The inflection to free cash flow, Okay, and so we saw with Q1 that your cash flow from operations is step change higher quarter over quarter.
Speaker Change: And.
Speaker Change: And so I'm, just trying to understand too that the pace of spend.
Speaker Change: Commercial production was declared at the end of the year. We saw some capex in Q1 do you expect that capex to kind of you changing to an open pit is there additional capex related to that or is the capex going to kind of moderate over the coming quarters.
Speaker Change: What are your thoughts in terms of cash flow from operations and potentially.
Speaker Change: The quarter that you might deliver free cash flow and positive.
Speaker Change: Positive free cash flow.
Speaker Change: We're delivering free cash flow right now.
Speaker Change: And in Q2, so there is no capex related to the open pit. The open pit is a contractor it is a very large local contractor.
Speaker Change: Very well financed contractor, they're putting in new equipment.
Speaker Change: Al will give us how many trucks and how many excavators there, but they are increasing the size of the trucks as well and they are paying all of that on their own and we're we have a fixed price contract with them on waste and ore and it's a very good business relationships. So there is no capex there and the fact that we're going.
Speaker Change: Much larger open pit and then originally planned last year, the capex to move the infrastructure at about a $1 million.
Speaker Change: So nothing really to two two.
Nothing important and sustaining Capex really is the development of the underground because we want to go and develop the underground so we need to bring the ramp back down and there is about $8 million. This year that we're going to do on developing the underground so the sustaining capex is extremely low.
Speaker Change: When you look at at this mine.
Speaker Change: It's really developing the underground because we know that we do have some very high grade shoots at different level and we want to bring it all the way down within the next 18 months to be at the bottom of the structure, where we have also silver accumulation.
Speaker Change: The contact with the ground night so.
Speaker Change: So if you assume and again, we're just going to do the math, if you assume $1 2 million ounces that we're selling right now at 33, even actually $33 five so far this quarter, but let's say 33, and if you use the cash cost that we had and the all in sustaining cost which is around <unk>.
Speaker Change: This quarter, it's going to be better than Q2, but let's use Q1 that gives us about $12 an ounce.
Speaker Change: Our free cash.
Speaker Change: That's net of the sustaining capex and all that so it's for Q2 its youre looking at it and again. This is back of the envelope, but youre looking at about $12 million of cash flow. We go would you want to add to that because you're controlling the numbers no I think thats.
Speaker Change: Good estimate.
Speaker Change: So we are generating cash now.
Speaker Change: And.
Speaker Change: Absolutely.
Speaker Change: Our G&A is extremely low if on an industry standard.
Speaker Change: The.
Speaker Change: The costs are coming down so we didnt, even take that into account, but the costs are going to be coming down as the denominator increases the production increases.
Speaker Change: As I said.
Speaker Change: In the original at the beginning we have like still programmers for or the computer system. There we have people refer to.
Speaker Change: That plant, we have the oxygen plant. So we do have way too many people still that are there.
Speaker Change: Are affecting our cash costs and our cost so it's over the next three quarters Q2, Q3, Q4, you'll see the cash cost come down and our guidance is still clear between 15, and 17 and a half and we will be there.
Speaker Change: And hence the free cash flow has started.
Speaker Change: Last quarter, continuing this quarter and Theres very little.
Speaker Change: Sustaining capex very very little.
Speaker Change: Okay.
Speaker Change: That's great.
Speaker Change: Yes.
Speaker Change: The big the Big Capex, our cash component is our drilling program, which is between 25 and $35 million, but that's totally discretionary. It's a decision that we take and we have all the money to fund that so that's not an issue, but the discretionary here decision is to fund.
Speaker Change: The drill campaign, which we will continue to fund because again it is going to the original looks super interesting and boom engine is continuing to get.
Speaker Change: Okay. Thanks for that maybe just as a final question Pamela.
Speaker Change: You mentioned that there'll be boumediene midyear update I'm, just wondering if you could tell us what the scope of that update.
Speaker Change: I know that one of the things some people than watching is is that any potential improvements in recoveries is that something that might be covered in that mid year update and what else might we expect this will probably be in advance of the PDA. Later on next year early next year I would imagine right.
Speaker Change: So look we're looking at <unk> as a as an evolving project.
Speaker Change: We're getting some breakthrough.
Speaker Change: Different aspect. So we didn't mention that we would have a mid year.
Speaker Change: The study that will be published because we're working with outside engineering firms that specializes in the recovery of pyrite ore and we will have that study in mid year.
Speaker Change: However, we are working on other things different things, so that may evolve a little bit and we could we could and I know, it's not a promise but were looking to maybe have a PPA ready before 2026, maybe in 2025, but its a dynamic process. So we can't commit to anything right now because it's a very dynamic process, but its.
Speaker Change: Make it a very positive way and that is something that could change a little bit the parameters of what we published but we'll keep you abreast of what's happening.
Speaker Change: Okay, Great, we'll look forward to that.
That's all for me good luck for the rescue too.
Don Demarco: Thank you Don.
Speaker Change: One moment for our next question.
Don Demarco: Our next question will come from the line of.
Don Demarco: <unk> Habib from Scotiabank Your line is open.
Speaker Change: Thanks, Operator, Hi, Ben line IR team, yeah, Congrats on a good quarter.
Speaker Change: A lot of my questions have already been answered, but I do have two questions, maybe maybe sticking with the cash cost.
Speaker Change: Meanwhile, you talked about cash costs kind of coming down.
Speaker Change: Obviously, we've seen cash cost decreased by about 30% quarter over quarter.
Speaker Change: Guidance for the year is around 15% to $17 50.
Speaker Change: Are we expecting a drop in cash cost again in Q2 awards or is more the second half is where we'll see the improvements in cost thickness.
Speaker Change: So look we're doing we are managing cash costs extremely extremely tightly and it will be a function of the denominator. So.
Speaker Change: The denominator is a function of the recovery of the grade so but if for US. We also manage costs on a per ton basis, and we're showing it to you.
On a per ounce basis, but I can assure you on a per ton basis, we are below our budget, which is we're managing it very very tightly.
Speaker Change: If we meet the guidance and again, because we don't know yet Eric Raphael is working on the recoveries and all that but if we do meet our target budget that we have for Q2, absolutely you will see another step decrease in cash cost and Youll see the same in Q3 and the same in Q4, it's a function of the denominator, but on a ton.
Speaker Change: One basis, we are where we want to be and even lower so it's it's.
Speaker Change: It's manage and you will see a decrease and that's why our guidance is between 15 and then if Q1 is a deal and we want to be on an average at 15 and 16, we need to be lower than that in Q4. So you will see a decrease in cash cost absolutely.
Speaker Change: Thanks for that.
Speaker Change: And just moving to you talked about.
Speaker Change: The team is working on improvements in the underground grade now.
Speaker Change: You provide more color on this I mean do you need more grade control drilling more development.
Speaker Change: Change of mining method.
Speaker Change: Color on that would be great.
Speaker Change: Yes. So there is no change of mining methods.
Speaker Change: Mainly more definition drilling so definition drilling to be applied more systematically when we get to a certain zone and enhance became not being forced to surgeons tonnage, but really forcing that team to respect more degrade and the tonnage while the open pit compensates for the tonnage.
Speaker Change: So that's why we're pushing the open pit to be higher at 70% of the total tonnage and so theres no change in mining method. There is no. There is no change in how we approach it except now we are focusing much more on grade we have our geos working.
Speaker Change: On the mining plan on grade reconciliation on ounces reconciliation all of that is there it's not that the answers are not there because we reconcile every quarter.
Our problem was dilution and sometime missing parts of the structure, because our 12 times 12 and definition drilling wasn't tight enough and they did not have enough time to do more drilling because we we wanted some some throughput and some output from the line. So we're slowing down when needed.
Speaker Change: And we're following this very closely so no change in mining method and nothing like that just going back to maybe more craftsmanship mining instead of bulk mining the underground.
Speaker Change: That's great.
Speaker Change: Those are my questions. Thank you for taking my questions and good luck in Q2.
Speaker Change: Thank you very much.
Speaker Change: And look we'll we'll stay in touch.
Speaker Change: Thank you for your questions.
Speaker Change: One moment for our next question.
Speaker Change: So we have a follow up from the line of Brian Adams from Desjardins. Your line is open.
Thank you operator, yeah. One follow up question. Please on the <unk> plant sounds as though some of the benefits are being realized already.
Speaker Change: Knowing all the details of what happened there is there any recourse against the PCM for the delight startup of <unk> II plant or that's not something that you would be considering.
Speaker Change: No we are considering that.
Speaker Change: As.
Speaker Change: On the call with US are in house, Chief Legal officer, and we are absolutely considering.
Speaker Change: Of course, we're in.
Speaker Change: Assessing all of this.
Speaker Change: We are where we're taking this very very seriously and it's there is a cause for compensation and we are negotiating with them and the legal team. So yes, yes, we're taking this very very seriously and hopefully in the next quarter or two.
Speaker Change: Be able to come up with a compensation package.
Speaker Change: For this and a few other things that as you know with EPC contractor when you finish the job. Its never you don't go for a weekend of honeymoon you always have extra and things that you dislike and so were not going on our honeymoon weekend in Medicare, we're actually going to go to debate. This.
Speaker Change: And their boardroom, but yes, there is a recourse and we will.
Speaker Change: <unk>, we will be able to establish the quantum but its there is damage.
Speaker Change: Thanks, very much I appreciate it that look forward to future updates.
Speaker Change: We will keep you posted on all of this.
Speaker Change: Thank you I'm not showing any further questions and I'd like to turn the call back over to Ben Locke for any closing remarks.
Speaker Change: Thank you so much well. Thank you everyone for being there look it's been a long call over an hour I think we've covered every.
Speaker Change: Part that needed to be covered.
Speaker Change: We take our.
Speaker Change: Kpis very seriously at the mine site and we're working on them.
Speaker Change: Anything that we haven't covered incentives and E mail.
Raphael Beaudoin: We will send that over to Raphael, our debit who is online as well on geology, and we will reply to you very quickly look can we.
Speaker Change: Our.
Speaker Change: <unk> now free as Don asked free cash flow territory.
Speaker Change: We're starting to build on our cash balance obviously.
Speaker Change: Top priority stays for us the drilling at <unk> in the drilling is going there and their regional.
Speaker Change: Have a beautiful plant that we've built for $114 million.
Speaker Change: Which is again under on a replacement cost value anywhere around the world would be like $500 million.
Speaker Change: It's a very robust I always give the example, if you go to amount of cash that Citi was built 2000 years ago, and it's still standing so and thats, how they build things in Morocco. So look we have a robust plant, it's really working well we know the kpis that we need to work on and but the big Big.
Speaker Change: Value creation swing will be on the <unk> study that's coming through over the next few quarters. We are seeing great progress we are seeing.
Speaker Change: Things that we will incorporate in our PVA and that should be already based on many variables on that.
Speaker Change: Drilling program on new discoveries and all of that it's affecting.
Speaker Change: The flow sheet and the quantum of production per year, but that being said it's already in <unk>.
Speaker Change: Full of equivalent 5 million ounces at five Gram, we did that in two and a half years, we touch a small portion of the year of.
Speaker Change: The territory.
Speaker Change: There's much more to come and again this is a mining permit in a mining country.
Speaker Change: Time to construction is quick and Morocco that permitting is already done and financing of the <unk>.
Speaker Change: Project is spoken for with <unk> and a couple of other players in country.
Speaker Change: In Morocco is bankable with the local banks and they did participate in the $100 million financing that was put together and they will they would be will participate in <unk> financing and <unk>. So.
Speaker Change: There is no can they financed that I would say it's there.
Speaker Change: Can they get permitted it's already there.
Speaker Change: Is there already ounces there their audited therefore, three 101 and we're finding it we're finding some more so now we need to work on the PVA, that's going to be the big driver for the coming 18 months.
Speaker Change: Value creation, plus they're producing is good there is a cash flow machine it will produce and.
Speaker Change: As we.
Speaker Change: We've seen that in the past we did this in the past.
Speaker Change: At <unk>, we did exactly that we had one small mind that paid for all the other mines and at the end we were producing many hundred thousand ounces of gold. So that we're in the same position here, we have a smaller mine that will produce.
Speaker Change: A lot of cash which will allow us to develop this tier one asset which is called <unk>, which we're working on right. Now. So thank you very much for your time I know we're above the one hour that it was set aside but it was a good quarter, we're working hard on Q2, and we will be available.
Speaker Change: The Q2 in the summer to answer any of your questions. So thank you very much and we'll be on the call in August for a review of Q2. Thank you.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect everyone have a good day.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.