Q1 2025 Lundin Gold Inc Earnings Call
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Operator: Good morning, ladies and gentlemen, and welcome to the Lundin Gold's Q1 and 2025 Financial Results Call Conference. At this time, all lines are in the end-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.
Good morning, ladies and gentlemen, and welcome to the Lundin Gold's Q1 in 2025 financial results call Conference call. At this time all lines are in need that only mode. Following the presentation, we will conduct a question and answer session.
If at any time during this call you require immediate assistance. Please press star zero for the operator. This call is being recorded on Friday may 9th after 1025.
Operator: This call is being recorded on Friday, May 9th of 2025.
Ron Hochstein: I would now like to turn the conference over to Ron Hochstein, President and CEO. Ron, please go ahead. Thank you, Chester, and good morning, everyone. Thank you all for joining us today. I'm joined by Terry Smith, Chief Operating Officer, and Chester See, our Chief Financial Officer.
Speaker Change: Like to turn the conference over to Ron Hartstein, President and CEO Ron. Please go ahead.
Speaker Change: Thank you gesture and good morning, everyone.
Speaker Change: Thank you all for joining us today.
Speaker Change: I'm joined by Terry Smith, Chief operating Officer, and Chester see our Chief Financial Officer.
Ron Hochstein: We're going to take you through our results for the first quarter of 2025.
Speaker Change: We're going to take us through our results for the first quarter 2025.
Ron Hochstein: Please note Lundin Gold's disclaimers on this slide. This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the Caution Regarding Forward-Looking Information and Statements section of our press release. Lundin Gold is a U.S. dollar reporting entity and all amounts in this presentation refer to U.S. dollars unless otherwise indicated. Lundin Gold delivered a strong first quarter in 2025, achieving gold production and sales of over 117,000 ounces. Our cash operating cost per ounce sold was $792, and our all-in sustaining cost was $909 per ounce sold. With a strong start to the year, we are confirming our 2025 production guidance of 475 to 525,000 ounces of gold and our basic guidance of $935 to $995 per ounce sold.
Speaker Change: But you should know when to Ingalls disclaimers on this slide.
Speaker Change: This discussion includes forward looking information.
Speaker Change: Actual future results may differ from expected results for a variety of reasons described to the caution regarding forward looking information and statements section of our press release.
Speaker Change: and Anthony at all amounts this presentation refer to US dollars unless otherwise indicated.
Speaker Change: Lundin Gold delivered a strong first quarter in 2025 achieving gold production and sales of over 117,000 ounces.
Speaker Change: Our Cash Operating Cost Brown sold the $792, and our all-in sustaining cost was $909 per
Speaker Change: was a strong start to the year. We are confirming our 2025 production guidance of 475 to 525,000 ounces of gold and our ASIC guidance of 935 to $995 per ounce sold.
Ron Hochstein: However, I want to note that our royalties and profit sharing are linked to the gold price. and our 2025 guidance assumes an average gold price of $2,500 per ounce. For every $100 increase in the gold price, we anticipate a roughly $10 increase in both our cash operating costs and ASIC. That said, through our focus on operational excellence, we are reaffirming our guidance. Supported by the strong operating performance and record high gold prices, Lundin Gold generated strong quarterly cash flow from operations of over $194 million and free cash flow of just under $171 million during the first quarter.
Speaker Change: However, I want to know that our royalties and profit sharing are linked to the gold price and our 2025 guidance assumes an average gold price of $2,500 per ounce.
Speaker Change: For every $100 increase in the Gold price, we anticipate a roughly $10 increase in both our cash operating costs in ASIC.
Speaker Change: That said, through our focus on operational excellence, we are reaffirming our guidance.
Speaker Change: Supported by the strong operating performance in record high gold prices, Lundin Gold generates strong quarterly cash flow from operations of over 194 million and pre-cash flow just under 171 million during the first quarter.
Ron Hochstein: This robust free cash flow allows us to introduce a new quarterly variable dividend complementing our existing sustainable fixed dividend of $0.30 per share. The inaugural variable dividend will be $0.15 per share, resulting in a total quarterly dividend of $0.45 per share. Additionally, given robust gold prices and our strong operating performance, we have also announced a special dividend of $100 million or $0.41 per share.
Speaker Change: This robust free cash flow allows us to introduce a new quarterly variable dividend, complementing our existing sustainable fixed dividend of $0.30 per share. The inaugural variable dividend will be $0.15 per share, resulting in a total quarterly dividend of $0.45 per share.
Speaker Change: Additionally, given robust gold prices and our strong operating performance, we have also announced a special dividend of $100 million, or $0.41 per share. Chester will provide more detail on this shortly.
Chester See: Chester will provide more detail on this shortly.
Ron Hochstein: On the exploration front, we released exciting results earlier this week, highlighting the growth within our portfolio of deposits and targets. Our success to date has led us to increase our 2025 exploration drill program to a minimum of 108,000 meters, our largest ever, and likely the largest in South America this year.
Speaker Change: Our success to date has led us to increase our 2025 exploration drill program to a minimum of 108,000 meters, our largest ever, and likely the largest in South America this year.
Ron Hochstein: Turning to slide five, I wanted to highlight our financial achievements for the quarter and demonstrate how different things look a year later supported by a rising gold price. In the first quarter, we saw significant growth across key financial metrics. Revenue increased by 57% year-over-year to $356 million and we generated robust free cash flow of $171 million, a substantial 108% increase. Our bottom line also saw excellent growth, with net income reaching a record $154 million, up 266%, and earnings per share at $0.64, at 256% increase. EBITDA stood at approximately $242 million, representing a 116% rise. Furthermore, our profitability per ounce sold improved considerably.
Speaker Change: Turning to slide five, I wanted to highlight our financial achievements for the quarter and demonstrate how different things look a year later supported by a rising gold price.
Speaker Change: In the first quarter, we saw significant growth across key financial metrics.
Speaker Change: Revenue increased by 57% year-over-year to $356 million, and we generated robust free cash flow of $171 million, a substantial 108% increase.
Speaker Change: Our bottom line also saw excellent growth, with net income reaching a record $154 million, up 266%, and earnings per share at $0.64, at a 256% increase.
EBITDA stood at approximately $242 million, representing a 116% rise.
Furthermore, our profitability per ounce sold improved considerably.
Ron Hochstein: While we are a huge beneficiary of gold price rise, which we can't control, we have been able to control our costs through optimization and productivity improvements. I'm extremely proud of our team that is constantly looking at ways to improve and innovate. are all in sustaining cost margin per ounce increased by 71% to $2,172 in Q1 2025. This positive trend is also reflected in overall ASIC margin in millions, which reached $256 million for the quarter.
Speaker Change: While we are a huge beneficiary of the gold price rise, which we can't control, we have been able to control our costs through optimization and productivity improvements. I'm extremely proud of our team that is constantly looking at ways to improve and innovate.
Speaker Change: Our all-in sustaining cost margin per ounce increased by 71% to $2,172 in Q1 2025.
Speaker Change: This positive trend is also reflected in our overall ASIC margin in millions, which reached $256 million for the quarter.
Ron Hochstein: with that.
With that, I'd now like to call over to Terry.
Terry Smith: I'd now like to call over to Terry. Thanks, Ron, and good morning all. Last quarter, we discussed our 2024 safety performance and the need to refocus on the fundamentals, including promoting safe employee behaviors, visible leadership in the field, hazard recognition, and fostering open communication. I am pleased to report that we started 2025 trending in the right direction. For the first quarter, we had two medical incidents and no lost time. Our total recordable incident rate per 200,000 hours worked decreased from 0.21 to 0.66 in Q4 2024. We can build on this if we avoid complacency and continue to stay focused.
Terry: Thanks Ron and good morning all. Last quarter we discussed our 2024 safety performance and the need to refocus on the fundamentals including promoting safe employee behaviors, visible leadership in the field, hazard recognition and fostering open communications.
Speaker Change: I am pleased to report that we started 2025 trending in the right direction.
Speaker Change: For the first quarter, we had two medical incidents and no lost time incidents.
Speaker Change: Our total recordable incident rate per 200,000 hours worked decreased from 0.21 to 0.66 in Q4 2024. We can build on this if we avoid complacency and continue to stay focused.
Terry Smith: Moving on to operations, we had a strong start to the year, highlighted by the successful completion of our plant expansion project in the first quarter. This key project, which aims to increase throughput to 5,000 tons per day and boost average recovery by 3%, is already contributing positively. In fact, in March and April, we saw average recoveries of 90 and 92% respectively. I'm excited to see how much more we can optimize the plant now that the expansion project is behind us. The first quarter saw gold production exceeding 117,000 ounces from 403,000 tons of ore mined with mill throughput just under 400,000 tons at an average of 4,424 tons per day.
Speaker Change: Moving on to operations, we had a strong start to the year, highlighted by the successful completion of our plant expansion project in the first quarter.
Speaker Change: This key project, which aims to increase throughput to 5,000 tons per day and boost average recovery by 3%, is already contributing positively. In fact, in March and April, we saw average recoveries of 90 and 92% respectively.
Speaker Change: I'm excited to see how much more we can optimize the plant now that the expansion project is behind us.
Speaker Change: The first quarter saw gold production exceeding 117,000 ounces from 403,000 tons of ore mined with mill throughput just under 400,000 tons at an average of 4,424 tons per day.
Terry Smith: Leveraging the downtime associated with the plant expansion tie-ins, we proactively completed the relining of the SAG mill and other essential maintenance originally scheduled for the second quarter, resulting in more downtime than originally planned for the first quarter, but positioning us well for the remainder of the year. Benefiting from strategic mine resequencing and positive grade reconciliation, we experienced a higher mill head grade of 10.4 grams per ton with 88.5% recovery in Q1. We anticipate this higher grade trend to continue through the first half of the year before moderating in the second half, while our overall average grade target remains at 9 grams per ton for 2025.
Benefiting from strategic mind re-sequencing
Speaker Change: and positive grade reconciliation, we experienced a higher mill head grade of 10.4 grams per ton with 88.5% recovery in Q1. We anticipate this higher grade trend to continue through the first half of the year before moderating in the second half, while our overall average grade target remains at 9 grams per ton for 2025.
Terry Smith: As Ron mentioned earlier, given our strong first quarter performance and the initial ramp up of the expanded plant, we are confirming our 2025 gold production guidance of 475,000 to 525,000 ounces.
Speaker Change: As Ron mentioned earlier, given our strong first quarter performance and the initial ramp-up of the expanded plant, we are confirming our 2025 goal production guidance of 475 to 525,000 ounces. With that, I'd like to turn the call over to Chester to discuss our financial results.
Chester See: With that, I'd like to turn the call over to Chester to discuss our financial results. Thanks, Terry, and good morning, everyone. For the first quarter of 2025, Lundin Gold achieved record revenues of $356 million from the sale of approximately 117,000 ounces of gold at an average realized gold price of $3,081 per ounce. This average realized price includes $2,926 per ounce of gross price received and a favorable impact of $1.55 per ounce marked to market on provisionally priced sales. Income from mining operations was $234 million, a significant increase from $113 million in the same period last year, primarily driven by the higher gold price.
Chester: Thanks, Harry, and good morning, everyone. For the first quarter of 2025, Lundin Gold achieved record revenues of $356 million from the sale of approximately 117,000 ounces of gold at an average realized gold price of $3,081 per ounce.
Chester: This average realized price includes $2,926 per ounce of gross price received and a favorable impact of $1.55 per ounce mark-to-market on provisionally priced sales.
Chester: Income from mining operations was $234 million, a significant increase from $113 million in the same period last year, primarily driven by the higher gold price.
Chester See: This strong performance translated to adjusted earnings of $154 million, or $0.64 per share, for the first quarter, compared to $58 million, or $0.24 per share, a year earlier. EBITDA also reached $242 million for the quarter, which is more than double that of the same period last year. Our free cash flow generation in the first quarter also more than doubled compared to the previous period and was supported by the strong gold price. We generated $194 million in net cash from operating activities and $171 million in free cash flow, or $0.71 per share, compared to $82 million, or $0.35 per share, in the first quarter of 2024.
Chester: This strong performance translated to adjusted earnings of $154 million or $0.64 per share for the first quarter, compared to $58 million or $0.24 per share a year earlier.
Chester: EBITDA also reached $242 million for the quarter, which is more than double that of the same period last year.
Chester: Our free cash flow generation in the first quarter also more than doubled compared to the previous period and was supported by the strong gold price.
Chester: We generated $194 million in net cash from operating activities and $171 million in free cash flow, or $0.71 per share, compared to $82 million, or $0.35 per share, in the first quarter of 2024.
Chester See: We anticipate continuing to generate significant free cash flow throughout the year based on our production and ASIC guidance, particularly with our increased exposure to rising gold prices and debt-free balance sheets. We began the quarter with $349 million in cash, generated $194 million from operating activities, paid out $73 million related to our fixed quarterly dividend of $0.30 per share, and reinvested $24 million in the business. Our cash position at the end of the quarter was a healthy $452 million. With the continued positive outlook for gold prices and our production and unit cost guidance, I am very optimistic that we will continue to generate significant free cash flow.
Chester: We anticipate continuing to generate significant free cash flow throughout the year, based on our production and ASIC guidance, particularly with our increased exposure to rising gold prices and debt-free balance sheet.
Chester: We began the quarter with $349 million in cash, generated $194 million from operating activities, paid out $73 million related to our fixed quarterly dividend of $0.30 per share, and reinvested $24 million in the business.
Chester: Our cash position at the end of the quarter was a healthy $452 million. With the continued positive outlook for gold prices and our production and unit cost guidance, I am very optimistic that we will continue to generate significant free cash flow.
Chester See: Now I'm pleased to announce an exciting development that underscores our commitment to delivering value to our shareholders. Given the favorable combination of increased gold prices, a debt-free balance sheet, and the robust performance of our operations, Lundin Gold has declared a special dividend totaling approximately $100 million, or $0.41 per share, which is payable on June 9th to shareholders of record on May 22nd. In addition, we are providing our shareholders with further increased returns through the introduction of a variable quarterly dividend to complement our existing fixed quarterly dividend. The new quarterly variable dividend will be directly linked to our free cash flow, which allows our shareholders to benefit more directly during periods of strong financial performance.
Chester: Now I'm pleased to announce an exciting development that underscores our commitment to delivering value to our shareholders.
Chester: Given the favorable combination of increased gold prices, a debt-free balance sheet, and the robust performance of our operations, Lundin Gold has declared a special dividend totaling approximately $100 million, or $0.41 per share, which is payable on June 9th to shareholders of record on May 22nd.
Chester: In addition, we are providing our shareholders with further increased returns through the introduction of a variable quarterly dividend to complement our existing fixed quarterly dividends.
Chester: The new quarterly variable dividend will be directly linked to our free cash flow, which allows our shareholders to benefit more directly during periods of strong financial performance.
Chester See: The framework for the variable dividend is as follows. Each quarter, the variable dividend will be based on a minimum of 50% of the prior quarter's normalized free cash flow after deducting the fixed dividend paid during that same period. To provide a more consistent and predictable variable dividend, we will be using a concept we call Normalized Pre-Casting. This involves removing significant non-recurring items from our standard free cash flow calculation, which we will apportion equally across all four quarters of the year. For 2025, the key non-recurring items include the annual payments for taxes and profit sharing, which together amount to approximately $95.3 million.
Chester: The framework for the Variable Dividend is as follows. Each quarter, the Variable Dividend will be based on a minimum of 50% of the prior quarter's normalized free cash flow after deducting the fixed dividend paid during that same period.
Chester: To provide a more consistent and predictable variable dividend, we will be using a concept we call normalized free cash flow.
Chester: This involves removing significant non-recurring items from our standard free cash flow calculation, which we will apportion equally across all four quarters of the year.
Chester: For 2025, the key non-recurring items include the annual payments for taxes and profit sharing, which together amount to approximately $95.3 million.
Chester See: This will be allocated at a rate of roughly $23.8 million per quarter for the purpose of calculating the normalized free cash flow. The details of these normalization adjustments for future years will be fully disclosed as part of our year-end financial results each year. With this, I am delighted to announce that our inaugural variable dividend has been set at $0.15 per share. Therefore, the total quarterly dividend payable on June 25th to shareholders of record on June 10th will be $0.45 per share, comprised of the quarterly fixed dividend of $0.30 and this new quarterly variable dividend of $0.15.
Chester: This will be allocated at a rate of roughly $23.8 million per quarter for the purpose of calculating the normalized free cash flow.
Chester: The details of these normalization adjustments for future years will be fully disclosed as part of our year-end financial results each year.
Chester: With this, I am delighted to announce that our Inaugural Variable Dividend has been set at $0.15 per share.
Chester See: Based on our closing price on the TSX as of May 8th, this total quarterly dividend of $0.45 per share represents an estimated yield of 4.2%. Further details regarding payment in Canadian dollars and Swedish kronor, as well as information for non-resident shareholders and temporary Euroclear transfer closure, can be found on the investor section of our website. This new variable dividend policy reflects our strong cash flow generation and our confidence in the future of Lundin Gold. It allows us to enhance shareholder returns while maintaining the financial flexibility to pursue our growth objectives. We believe this is a significant step in our capital allocation strategy, and we are excited to be able to offer this enhanced return to our shareholders.
Chester: Based on our closing price on the TSX as of May 8th, this total quarterly dividend of $0.45 per share represents an estimated yield of 4.2%.
Chester: Further details regarding payment in Canadian dollars and Swedish kronor, as well as information for non-resident shareholders and temporary Euroclear transfer closure, can be found on the Investor section of our website.
This new variable dividend policy reflects our strong
Chester: Cash Flow Generation and our confidence in the future of Lundin Gold. It allows us to enhance shareholder returns while maintaining the financial flexibility to pursue our growth objectives.
Chester: We believe this is a significant step in our capital allocation strategy, and we are excited to be able to offer this enhanced return to our shareholders.
Chester See: For a more detailed discussion of our dividends and our financial results, I encourage you to turn to the MD&A.
Chester: For a more detailed discussion of our dividends and our financial results, I encourage you to turn to the MD&A. Now I'd like to turn the call back over to Ronald.
Ron Hochstein: Now I'd like to turn the call back over to Ron. Thank you, Chester.
Thank you, Chester.
Ron Hochstein: Let's now turn to our exciting exploration and growth initiatives. Two days ago, we provided an update on our expiration results across our expanding portfolio of targets. I encourage you to read that release for the full details, but I'll summarize the key findings here.
Let's now turn to our exciting exploration and growth initiatives.
Chester: Two days ago, we provided an update on our exploration results across our expanding portfolio of targets.
Chester: I encourage you to read that release for the full details, but I'll summarize the key findings here.
Ron Hochstein: starting with FD&S, located directly south of FDM. Our high-grade conversion drilling program continues to yield positive results, confirming the continuity of the deposit and identifying additional encouraging mineralized zones. Our work at Tranqualoma and the surrounding areas has provided significant insights, confirming the presence of a copper and gold porphyry system on surface. One hole returns 0.5% copper equivalent over 850 meters from surface. Included in that whole, there was a section close to 500 meters at 0.65% copper equivalent. This is a key development. that enhances the overall prospectivity around FDM and suggests exciting potential for other porphyry targets, including Castile and Sandia.
Chester: Starting with FD&S, located directly south of FDM, our high-grade conversion drilling program continues to yield positive results, confirming the continuity of the deposit and identifying additional encouraging mineralized zones.
Chester: One hole returns 0.5% copper equivalent over 850 meters from surface.
Chester: Included in that whole, there was a section close to 500 meters at 0.65% copper equivalent.
This is a key development.
Chester: that enhances the overall prospectivity around FDM and it suggests exciting potential for other porphyry targets, including Castile and Sandia.
Ron Hochstein: At FDN East, recent drill results clearly demonstrate the continuity of mineralization and indicate promising areas for further expansion. Turning to Bonsa's sewer, the latest results have confirmed the continuity of the mineral envelope, and we are also seeing potential for further extension along the south limit, which warrants further investigation. In the East Extension, the drilling program defined the east limit close to the contact with the Tricholoma porphyry.
Chester: At FDN East, recent drill results clearly demonstrate the continuity of mineralization and indicate promising areas for further expansion.
Chester: Turning to Bonsa's sewer, the latest results have confirmed the continuity of the mineral envelope and we're also seeing potential for further extension along the south limit, which warrants further investigation.
Chester: In the East Extension, the drilling program defined the east limit close to the contact with the Trancoloma Porphyry.
Ron Hochstein: Due to the proximity between Bonsa Sur and the recently discovered Tricholoma porphyry system, the decision has been made to delay the initial mineral resource estimate for Bonsa Sur to better understand the geological environment.
Chester: Due to the proximity between Bonsa Sur and the recently discovered Trancoloma porphyry system, the decision has been made to delay the initial mineral resource estimate for Bonsa Sur to better understand the geological environment.
Ron Hochstein: Finally, I want to emphasize the increased scope of our 2025 exploration program. Building on our success to date and the expanded pipeline of targets, we have increased our total program to a minimum of 808,000 metres. This includes an increase to our near mine exploration program to 83,000 metres from 65,000 metres and includes an increase to our conversion drilling to 25,000 metres, focused on FD&S, up from 15,000 metres. The total cost of the Near Mine Exploration Program is now $39 million, while the Conversion Program is included under Sustaining Capital. This expanded program underscores our strong commitment to resource growth and discovery.
Chester: Finally, I want to emphasize the increased scope of our 2025 exploration program.
Chester: Building on our success to date and the expanded pipeline of targets, we have increased our total program to a minimum of 808,000 metres.
Chester: This includes an increase to our Near Mine Exploration Program to 83,000 meters from 65,000 meters and includes an increase to our conversion drilling to 25,000 meters focused on FD&S up from 15,000 meters.
Chester: The total cost of the Near Mine Exploration Program is now $39 million, while the Conversion Program is included under Sustaining Capital.
Chester: This expanded program underscores our strong commitment to resource growth and discovery.
Ron Hochstein: Moving to slide 15, now let's talk about how we are prioritizing this expanded exploration program. FD&S is our number one priority, and we are looking to grow and mature it. As mentioned, we have increased our 2025 conversion program. The data being gathered will be incorporated into ongoing engineering studies for integration into our 2026 long-term mind plan. We currently have three drill rigs on FD&S, but we'll be increasing to six, focusing on conversion and expansion. Tricholoma is our second priority, and we currently have three rigs on this recently discovered copper gold porphyry. Bonza sewer is our third priority, and we will continue drilling in the south extension.
Chester: Moving to slide 15, now let's talk about how we are prioritizing this expanded exploration program.
Chester: FD&S is our number one priority, and we are looking to grow and mature it. As mentioned, we have increased our 2025 conversion program.
Chester: The data being gathered will be incorporated into ongoing engineering studies for integration into our 2026 long-term mind plan
Chester: We currently have three drill rigs on FD&S, but we'll be increasing to six, focusing on conversion and expansion.
Chester: Tricholoma is our second priority and we currently have three rigs on this recently discovered copper gold porphyry.
Chester: Bonza sewer is our third priority, and we will continue drilling in the south extension. We'll also drill to the east to define the limits with neighboring Trancoloma.
Ron Hochstein: We will also drill to the east to define the limits with neighboring Trancoloma. Three rates are currently drilling on Bonzo Sewer. Number four is FD&E and we will work to expand our geologic understanding by conducting further step out drilling. One rig is drilling from underground. Number five, conduct scout drilling on the other porphyry targets, including Castillo and Sandia. And last but not least, we are in a target-rich environment in the Suarez Basin, and we will pursue scout drilling on the highest interest targets as our geological understanding evolves.
Three rates are currently drilling on Bonza sewer.
Chester: Number four is FD&E and we will work to expand our geologic understanding by conducting further step-out drilling. One rig is drilling from underground.
Chester: Number five, conduct scout drilling on the other porphyry targets including Castillo and Sandia.
Chester: And last but not least, we are in a target-rich environment in the Suarez Basin, and we will pursue scout drilling on the highest interest targets as our geological understanding evolves.
Ron Hochstein: With respect to our 2025 objectives, we said at the beginning of the year, we are well on track to meet or exceed them. Our top priority remains the health, safety of our people and the environmental performance of our operations. We continue to embed best practices across the organization. As you can see on the right, our total recordable incident rate for Q1 was 0.21, a significant improvement compared to the 0.66 reported for the full year, 2024. This demonstrates our ongoing commitment to our safety initiatives and culture.
Chester: With respect to our 2025 objectives, we said at the beginning of the year, we are well on track to meet or exceed them.
Chester: Our top priority remains the health, safety of our people and the environmental performance of our operations.
We continue to embed best practices across the organization.
Chester: As you can see on the right, our total recordable incident rate for Q1 was 0.21, a significant improvement compared to the 0.66 reported for the full year, 2024.
Chester: This demonstrates our ongoing commitment to our safety initiatives and culture.
Ron Hochstein: We have completed the planned expansion project. As Terry mentioned, we started to see the benefits of this program in March. The focus for the second quarter will be on optimization to ensure we are operating efficiently and realizing the full potential of this new circuit. Based on our performance in the first quarter and our outlook for the remainder of the year, we are in a position to confirm our 2025 production and unit cost guidance. Our commitment to resource growth is evident in our exploration programs. We set an ambitious target to increase exploration drilling to record levels based on exploration success, and I'm happy to report we are exceeding our initial plans.
Chester: We have completed the planned expansion project. As Terry mentioned, we started to see the benefits of this program in March. The focus for the second quarter will be on optimization to ensure we are operating efficiently and realizing the full potential of this new circuit.
Chester: based on our performance in the first quarter and our outlook for the remainder of the year. We are in a position to confirm our 2025 production and unit cost guidance.
Chester: Our commitment to resource growth is evident in our exploration programs.
Chester: We set an ambitious target to increase exploration drilling to record levels based on exploration success, and I'm happy to report we are exceeding our initial plans.
Ron Hochstein: We have increased our drilling program from 80,000 meters to 108,000 meters, reflecting the encouraging results we are seeing and the significant potential we believe exists within our land package. We are making excellent progress at FD&S. Our work is focused on establishing an initial reserve for this promising area while simultaneously continuing to grow the inferred resource. As highlighted earlier, the 2025 conversion drilling program has been increased to support this objective. For Bonsa Soar, although we have delayed the initial mineral resource assessment to better understand the geological environment between Bonsa Soar and the recently discovered Tri-Chlor, we are drilling both.
Chester: We have increased our drilling program from 80,000 meters to 108,000 meters, reflecting the encouraging results we are seeing and the significant potential we believe exists within our land package.
Chester: We are making excellent progress at FD&S. Our work is focused on establishing an initial reserve for this promising area, while simultaneously continuing to grow the inferred resource.
Chester: As highlighted earlier, the 2025 Conversion Drilling Program has been increased to support this objective.
Chester: For Bonsa Sura, although we have delayed the initial mineral resource assessment to better understand the geological environment between Bonsa Sura and the recently discovered Trichlor, we are drilling both.
Ron Hochstein: Sustainability is integral to our long-term success. We have been actively working on establishing a new five-year sustainability strategy, building on our existing commitments and aligning with global best practices. As a key step in this process, our 2024 Sustainability Report has already been published, providing transparency on our performance and outlining our future direction.
Chester: Sustainability is integral to our long-term success. We have been actively working on establishing a new five-year sustainability strategy, building on our existing commitments and aligning with global best practices.
Chester: As a key step in this process, our 2024 Sustainability Report has already been published, providing transparency on our performance and outlining our future direction.
Ron Hochstein: Finally, we remain committed to returning value to our shareholders. Our previous target was to return approximately $300 million to shareholders via dividends. With the introduction of our new quarterly variable dividend on top of our quarterly fixed dividend, as well as our special dividend, I'm pleased to say that we are now on track to exceed this target, further enhancing shareholder returns. With the previous dividend paid earlier this year in January, and including the recently announced dividends, we will have already distributed approximately $280 million a year to date.
Finally, we remain committed to returning value to our shareholders.
Chester: Our previous target was to return approximately $300 million to shareholders via dividends.
Chester: with the introduction of our new quarterly variable dividend on top of our quarterly fixed dividend as well as our special dividend. I'm pleased to say that we are now on track to exceed this target, further enhancing shareholder returns.
Chester: With the previous dividend paid earlier this year in January and including the recently announced dividends, we will have already distributed approximately $280 million year to date.
Ron Hochstein: In conclusion, our 2025 objectives are firmly on track. We are delivering on our operational targets, advancing our key projects, and enhancing shareholder returns. We are confident in our ability to continue this positive momentum throughout the remainder of the year.
Chester: In conclusion, our 2025 objectives are firmly on track. We're delivering on our operational targets, advancing our key projects, and enhancing shareholder returns.
Chester: We are confident in our ability to continue this positive momentum throughout the remainder of the year.
Ron Hochstein: I want to thank all of you for joining us and for your continued support.
Chester: I want to thank all of you for joining us and for your continued support. And with that, I will now open the call to questions. Over to you, Chester.
Chester See: And with that, I will now open the call to questions. Over to you, Chester. Thank you so much for that.
Chester: Thank you so much for that. Ladies and gentlemen, we will now begin the question and answer session.
Operator: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star button followed by the number 1 on your telephone keypad. You will hear a prompt that your hand has been raised.
Speaker Change: Should you have a question, please press the star button, followed by the number 1 on your telephone keypad.
Speaker Change: You will hear a prompt that your hand has been raised.
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Charles Ahid Yamhen: One moment please for our first Your first question comes from Charles Ahid Yamhen from Scotiabank. Please go ahead. Thank you for taking my question.
Speaker Change: Your first question comes from Charles Ahid Yamhen from Scotiabank. Please go ahead.
Thank you for taking my question.
Charles Ahid Yamhen: Congratulations on a very good quarter for the team. I just had a couple of questions, and I'm asking on behalf of Ovais Habib here. The first one is on Bonzo. So I was wondering if you could give us like an estimate of when the initial mineral resource estimates would be released, just given the potential extension to the south and the potential intersection with Tranquiloma. Thanks, Charles. Good morning.
Speaker Change: Congratulations on a very good quarter for the team. I just had a couple of questions and I'm asking on behalf of Ovesa BBA. The first one is on Bonsa Soar. I was wondering if you could give us like an estimate of when the initial mineral resource estimates would be released, just given the potential extension to the south and the potential intersection with Trancaluma.
Speaker Change: Thanks, Charles. Good morning. Yeah, it's too early to tell really when we're that's why we didn't actually put a date out there as to what it is this whole with these schools now that.
Ron Hochstein: Yeah, it's too early to tell really when that's why we didn't actually put a date out there as to when it is. With these holes now that we announced on this last release, but prior that we're closer to Bonza sewer, and even the drilling to the south, we're seeing this porphyry type mineralization even in this other component. It's become exciting, but more complex. So we're not saying right now when that new estimate could be because we just need to really hit that hard with as we see, we're gonna have six rigs turning between Tranquil Loma and Bonza sewer, trying to really understand what's going on on that part of our deposit, but it is very exciting.
Speaker Change: We announced on this last release but prior that we're closer to Bonza sewer
Speaker Change: And even the drilling to the south, we're seeing this porphyry type mineralization, even in this other component. It's become exciting, but more complex. So we're not saying right now when that new estimate could be because
We just need to...
Speaker Change: really hit that hard with, as we see, we're going to have six rigs turning between Tranquil Loma and Bonsa Sur, trying to really understand what's going on on that part of our deposit. But it is very exciting.
Ron Hochstein: Great, that's helpful. I mean, I imagine that's going to impact the PEA. I think that was supposed to be potentially released at the end of the year. I imagine that's going to push that further. Any follow-on on what that could potentially be in terms of what should be seen in this? Well, yeah, no, Charles, yeah, the P.E.A. is shelved. you know, we could be looking at something significantly larger now. You know, the as you saw, as you've seen from these initial tricholoma results, you know, that this, this has the potential to really be a transformational type discovery, your initial target and Yeah, the PA, depending on the drilling results could look a lot different.
OK.
Well, yeah, no, Charles, yeah, the P.E.A. is shelved, it's...
Speaker Change: you know, we could be looking at something significantly larger now, you know, the as you've seen from these initial tranquiloma results You know that this this has the potential to really be a transformational type discovery your initial target and
Speaker Change: Yeah, the PA, depending on the drilling results, could look a lot different. So yeah, it's shelved for the time being.
Ron Hochstein: So yeah, it's it's shelved for the time being. Okay. And then just one follow-up question. When you just look at your portfolio here and the software piece you're recording on exploration programs, does that really give the companies the need to sort of do an M&A here? How are you thinking about this? Does it change your view? and some of you in the middle.
Speaker Change: Okay, and then just one follow-up question, when you just look at your portfolio here and the subcategories you're recording on exploration programs, does that really give the companies need to sort of do an M&A here, like how are you thinking about this, will they change your view to doing some of you in the near term?
Terry Smith: All right, you go ahead, Brendan. Yeah, just on the M&A question, no, I think our exploration program is very robust. And as you see, we've expanded the program, and we're very excited about the variety of targets, especially FD&S, which we're working hard to convert and include in the long-term mine plan starting next year. So as Ron mentioned, we're in a very target-rich environment in the Suarez Basin and on our concessions, and we'll continue to expand there. And we see a lot of organic growth opportunities within our existing portfolio. Not that we're not looking at M&A, but we have a full plate in front of us.
All right, go ahead, Brendan.
Brendan: Yeah, just on the M&A question, no, I think our exploration program is very robust.
Brendan: And as you see, we've expanded the program and we're very excited about the variety of targets, especially FD&S, which we're working hard to.
Brendan: convert and include in the long-term mine plan starting next year.
Speaker Change: As Ron mentioned, we're in a very target-rich environment in the Suarez Bases and on our concessions, and we'll continue to expand there, and we see a lot of organic growth opportunities within our existing portfolio. Not that we're not looking at M&A, but we have a full plate in front of us.
Charles Ahid Yamhen: Okay, thank you, that's awesome.
Okay, thank you. That's awesome.
Charles Ahid Yamhen: Thank you very much for that, Charles.
Speaker Change: Thank you very much for that, Charles. And moving on to our next question, Anita Soni from CIBC World Markets. Please go ahead.
Anita Soni: And moving on to our next question, Anita Soni from CIBC World Markets, please go ahead. Hi, good morning, Ron and team, and congratulations on a strong results and a good, I guess, industry leading capital returns program. I guess my question with respect to Bonvasseur and also on M&A, there's two of them, so the first one on Bonvasseur, I think originally I had it sort of coming on stream in 2028.
Anita Soni: Good morning, Ron and team, and congratulations on a strong results and a good, I guess, industry-leading capital returns program.
Anita Soni: I guess my question with respect to Bonsasour and also on M&A, there's two of them. So the first one on Bonsasour, I think originally I had it sort of coming on stream in 2028.
Ron Hochstein: Can you just give us a timeline on, you know, how, when you picture this coming in, like sort of, is it near the end of the decade or like into the next decade, like in the early 2030s, or conceptually where do you expect to see this? Hi Anita, and thanks for the kind words there on the quarter. Yeah, I think now with Bonzo Soar, it's very difficult at this point in time for us to start putting some timelines around it. I think what we're seeing at Tranquil Alma and what the drilling we're planning on Bonzo Soar, I think even over the next quarter, over the next six months, is really going to help us to be able to provide more clarity to questions like Charles had and like you have, as to what this means for us in that area.
Anita Soni: When you picture this coming in, is it near the end of the decade or into the next decade, like in the early 2030s?
conceptually, where do you expect to see this?
Anita Soni: Hi Anita, and thanks for the kind words there on the recorder.
Speaker Change: I think now with Bonzo's sore it's very difficult at this point in time for us to start putting some timelines around it. I think
Speaker Change: what we're seeing at Tranquil Alma and what the drilling we're planning on Bonza Soar.
Speaker Change: I think even over the next quarter, over the next six months, is really going to help us to be able to provide more clarity to questions like Charles had and like you have as to what this means for us in that area.
Ron Hochstein: Because, yeah, it's really been that one, I know it's only one hole, but when you have 800 meters, and that hole ended in mineralization too. So 800 meters from surface at those grades, it's just, you know, and also what the geophysics we've done shows us is that has the potential, and I state potential, to be a large system. We need to, I think the next six months are really going to help us define what the horizon may look like for that whole part of that area south of Fruta del Norte.
because
Speaker Change: Yeah, it's really been, you know, that one, I know it's only one hole, but when you have 800 metres, and that hole ended in mineralization too, so 800 metres from surface at those grades, it's just, you know, and also what the geophysics we've done shows us.
Speaker Change: is that has the potential, and I state potential, to be a large system. We need to, I think the next six months are really going to help us define what the horizon may look like for that whole part of that area south of Fruita del Norte.
Ron Hochstein: And then just on the M&A question, I mean, the increase in the dividend, I'm wondering how, you know, if you're still looking to acquire something, are those two sort of, you know, like, it signals to me when you when you're giving this much capital back to shareholders, that you perhaps are not seeing things out there that are worth, you know, the value isn't out there right now. Is that an accurate? No, I think the thing is, Anita, is that Fruit of Del Marte is such an amazing asset, and we have such an amazing operating team that we're able to just keep focusing on reducing our costs.
Okay.
Speaker Change: And then, just on the M&A question, I mean, the increase in the dividend, I'm wondering how, you know, if you're still looking to acquire...
Speaker Change: something, are those two sort of, you know, like, it signals to me when you when you're giving this much capital back to shareholders that you perhaps are not seeing things out there that are worth
Speaker Change: The value isn't out there right now. Is that an accurate assessment?
No, I think the thing is, Anita, is that...
Speaker Change: Frugidale Marte is such an amazing asset and we have such an amazing operating team that we're able to just keep focusing on reducing our costs and
Ron Hochstein: still generating significant cash flow. And, you know, the special dividend is just an opportunity for us to, you know, that, that last, we all know this last run up in gold price, pretty high, pretty, pretty significant, pretty fast. And so we feel like give that opportunity back to shareholders, but. Don't forget, Anita, you know, we set this at a minimum of 50%. We're still going to be generating some pretty significant free cash flow to continue to bolster our opportunities to the our cash resources for whether it's growth opportunities or M&A. So yeah, not at all.
Speaker Change: It's still generating significant cash flow and, you know, the special dividend is just an opportunity for us to, you know, that last, we all know this last run up in gold price, pretty high, pretty, pretty significant, pretty fast.
Speaker Change: Don't forget, Anita, we set this at a minimum of 50%, we're still going to be generating some pretty significant free cash flow to continue to bolster our opportunities to lead.
our task resources for whether it's growth opportunities or M&A.
Ron Hochstein: I think it's just part of our focus on shareholder, one of our key pillars for creating value, but that doesn't mean at all that we don't see anything.
Speaker Change: So, yeah, not at all. I think it's just part of our focus on shareholder, one of our key pillars.
Speaker Change: for Creating Value, Shareholder Return, but that doesn't mean at all that we don't see anything.
Anita Soni: And then just last question on the performance dividend, just so that I understand it. You said that around $23.5 million is the number I heard per quarter. So that would be taken out of the, so that would be considered, I guess, a deduction from the free cash flow after dividend. Is that the accurate way of looking at it? Yes, that that's right. And it is Chester, we in the second quarter, we will make those significant payments. So we will add that back to the free cash flow calculation, and then deduct the normalized piece, which is the 23.5 that you mentioned.
Speaker Change: Okay, and then just last question on the performance dividend, just so that I understand it. You said that around $23.5 million is the number I heard per quarter, so that would be taken out of the, so that would be considered, I guess, a deduction from the free cash flow after dividend. Is that the accurate way of looking at it?
Speaker Change: Yes, that's right, and it is Chester. We, in the second quarter, we will make those significant payments, so we will add that back to the free cash flow calculation, and then deduct the normalized piece, which is the 23.5 that you mentioned.
Chester See: And then it'll be that way every quarter this year.
and then it'll be that way every quarter this year.
Anita Soni: All right, okay, thank you, that's it for my Thanks, Sidney.
All right, okay, thank you. That's it for my questions.
Anita Soni: Thank you so much.
Thanks, Anita. Thanks so much.
Don Demarco: Thank you so much for that question, Anita Soni, and now we're going to move on to Don DeMarco from National Bank. Please, go ahead. Thank you, Operator. And Ron, certainly, congratulations on an order, a strong quarter again. So first question, though, do you upsize your dividends? Is this special dividend viewed as a one-off or do you expect more of these to follow with some some degree of frequency? I don't have a crystal ball on gold price. If you do, Don, then you might be bad. Look, one of our pillars is shareholder return and should create shareholder value through returning capital.
Speaker Change: Thank you so much for that question, Anita Soni. And now we're going to move on to Don DeMarco from National Bank. Please, go ahead.
Don Demarco: Thank you, Operator. And Ron, certainly, congratulations on an order, a strong quarter again. So, first question, though, do you upsize your dividends? Is this special dividend viewed as a one-off, or do you expect more of these to follow with some degree of frequency?
Thank you very much.
Speaker Change: I don't have a crystal ball on gold price. If you do, Don, then you might be bad. One of our pillars is shareholder return.
Don Demarco: and should create shareholder value through returning capital. It's going to depend a lot on, you know, what happens with our drilling over the next six months. There's so many factors that, you know, at this point in time, you know, we feel that with the new formula we've got for variable going forward, that
Ron Hochstein: It's going to depend a lot on what happens with our drilling over the next six months or so many factors that at this point in time, we feel that with the new formula we've got for variable going forward. you know, shareholders will be able to get be able to take advantage of rapid increases in gold price, etc., such that the special may not be required. or will not. But at this point in time, I can't say we'll never do it again. But I think the formula that we've got, Don, will certainly, I think that accomplishes our goals.
Don Demarco: shareholders will be able to take advantage of rapid increases in gold price, etc.
may not be required.
Don Demarco: or will not. But at this point in time, I can't say we'll never do it again. But I think the formula that we've got done will certainly, I think that accomplishes our goals.
Ron Hochstein: Okay, and is the NCIB somewhat deprioritized with the dividend increase? The NCIB was something we put in more or less as a digital tool in our toolkit for financial and it was really there in the event of a black swan type event. So I don't think it's de-prioritized, it's just that... We continue to just make sure that we've got flexibility.
Speaker Change: Okay and is the NCIB somewhat deprioritized with the dividend increase?
Speaker Change: The NCIB was something we put in just as more or less as a toolkit in our, you know, additional tool in our toolkit for financial, and it was really there in the event of a black swan type event. And so I don't think it's deprioritized, it's just that
We continue to just make sure that we've got flexibility.
Ron Hochstein: Okay, great.
Speaker Change: Okay, great. And then shifting over to Bonsa Sir and Tranquilloma.
Ron Hochstein: And then shifting over to Bonds of Sir and Trancoloma. Of course, we recognize it's an early stage, but we see the proximity between these two. Is there a potential here for a larger open pit? And would it require a different processing flow sheet than Balthasar? We're seeing copper there. And what questions do you look to have answered from your drill program over the next? The simple answer is yes, it would be different. And this is the potential, more traditional copper porphyry done. So yeah, potentially quite a bit bigger operation. And yeah, different flow sheet. Yeah, this is, you know, if tricholoma is what we we dream about.
Speaker Change: You know, of course, we recognize it's an early stage, but, you know, we see the proximity between these two. Is there a potential here for a larger open pit and would it require a different processing flow sheet than Bondiser? We're seeing copper there. And what questions do you look to have answered from your drill program over the next six months?
Speaker Change: The simple answer is yes, it would be different. And this is the potential more traditional copper porphyry done. So, yeah, potentially quite a bit bigger operation and yeah, different flow sheet.
Yeah, this is, you know, if tranquiloma is what we...
Ron Hochstein: Yeah, this is this is significant change to what Fruity Del Marte is. This is now one of the better gold deposits along with a pretty healthy potential copper mine next door. Yeah, it would be different. And, you know, we're It's exciting and it's going to take some time. Six months, I think we're going to be really focusing on trying to understand the core of the porphyry and start looking at the How big is that? And one of the advantages we have of the Lundin group is we've got geologists here who sit on the same floor as us from NGX and Philo who kind of know a lot about copper porphyries and even upstairs with Tim Walmsley at Lundin Mining.
Speaker Change: we dream about. Yeah, this is a significant change to what Fruita del Marte is. This is now one of the better gold deposits, along with a pretty healthy potential copper mine next door. Yeah, it would be different.
You know where
Speaker Change: It's exciting and it's going to take some time. Six months I think we're going to be really focusing on trying to understand the core of the porphyry and start looking at the
How big is it?
Speaker Change: and one of the advantages we have of the Lundin group is we've got geologists here who sit on the same floor as us from
Speaker Change: and GX and Philo who kind of know a lot about copper porphyry and even upstairs with Tim Walmsley at Lundee Mining. So we're certainly tapping into them to help us bring the latest geophysical technology and just helping us looking at our drill programs.
Ron Hochstein: So we're certainly tapping into them to help us bring the latest geophysical technology and just helping us looking at our drill programs. Okay, great.
Ron Hochstein: Good luck with that.
Don Demarco: And then maybe just as a final question, I'm just interested in your thoughts on the Ecuador election. You know, we had the election outcome a few weeks ago and I'm sure you could have worked with both governments, but what are your thoughts on the election outcome and are there any implications? on Lundin. Um, no, that's actually, I'm glad you asked that, Don. I think the election results, A, surprised us all, but, uh... you know, other than Canada, where we seem to follow polls everywhere else, you don't follow the polls, because the polls going in were for very tight, but Noboa did well.
Speaker Change: You know, other than Canada where we seem to follow polls, everywhere else you don't follow the polls because the polls going in were very tight, but Naboa did well.
Ron Hochstein: And also, too, the more important thing is the National Assembly. Noboa has a significant number of seats in the National Assembly. The issue we've had over the last two governments is a very fractionated National Assembly, which has made it very difficult for the overall government to move forward. That's what we see is a big difference here going forward. And, you know, I take my Lundin Gold hat off and put my hat on as, I'm not saying I'm a citizen, but I certainly feel like part of Ecuador. I think it's great for the country now to have, you know, I think a solid group now that can really move forward and do things that will benefit the country of Ecuador.
Speaker Change: And also, too, the more important thing is the National Assembly. NABOA has a significant number of seats in the National Assembly. The issue we've had over the last two governments is a very fractionated National Assembly, which has made it very difficult.
Speaker Change: for the overall government to move things forward. That's what we see as a big difference here going forward. And, you know, I take my London gold hat off and put my hat on as
Speaker Change: I'm not saying I'm a citizen, but I certainly feel like part of Ecuador. I think it's great for the country.
Speaker Change: Now, to have, you know, I think a solid group now that can really move forward and do things that will benefit the country of Ecuador. And one of those is, you know, and Ebola has realized mining can be a significant contributor.
Ron Hochstein: And one of those is, you know, Noboa has realized mining can be a significant contributor to the economy. And I think we're going to see now a real focus on trying to improve the moving forward with a number of things, which will definitely help us as we continue to keep developing Trancoloma, Bonsa Sur and our other potential targets.
Speaker Change: to the economy, and I think we're going to see now a real focus on trying to improve the moving forward with a number of things, which will definitely help us as we continue to keep developing Trancoloma, Bonsair, and our other potential targets.
Don Demarco: Great. Okay, thanks again, Ron, and good luck with Q2. All the best. Thanks, Don.
Great.
Speaker Change: Okay, thanks again, Ron, and good luck with Q2. All the best.
Thanks, Don.
Martin Pradier: Thank you so much for that, Don, and now we're going to move on to Martin Pradier from Veritas Investment Research. Thank you. Great results. I just have a few questions. One of the things that surprised me was the very low tax rate for the quarter. It was 29%. How should I think in terms of the tax rate for the year?
Thank you.
Speaker Change: Thank you so much for that, Don. And now we're going to move on to Martin Pradier from Veritas Investment Research. Please, go ahead.
Martin Pradier: Thank you. Great results. I just have a few questions. One of the things that surprised me was the very low tax rate for the quarter. There was 29 percent.
Speaker Change: How should I think in terms of the tax rate for the year, income tax rate?
Chester See: Chester, yeah, I'll take that, Martin. With regards to our tax rate, we do we have done some tax planning and strategy around our operations. And therefore, generally speaking, we expect your go forward tax rate to range anywhere between 30 and 33%. Oh, that's low weather. put that what you have. Yeah, as I mentioned, we've done some tax planning and strategies around our structure, which is helping us a bit with taxes. Okay. The recovery rate was very strong in March, 90%. Has it continued improving?
Chester: Chester? Yeah, I'll take that, Martin. With the growth start tax rate, we do, we have
Chester: done some tax planning and strategy around our operations and therefore, generally speaking, we expect your go-forward tax rate to range anywhere between 30 and 33 percent.
Oh, that's lower than before.
put that what you had communicated before.
Chester: As I mentioned, we've done some tax planning and strategies around our structure, which is helping us a bit with taxes.
Speaker Change: Okay, the recovery rate was very strong in March, 90%. Has it continued improving? And I think it can go higher than that. What's your view on that?
Terry Smith: And I think it can go higher than that, what you Hi, Martin, it's it's Terry here. Yeah, we're, we're pleased with what the plants expansion has done for us in terms of recoveries. The Jameson cells are delivering, you know, we're collecting a lot of the fines that were previously going to tailings. We're, we're pretty comfortable with the 3% bump that we were, we were targeting with the project. And as I mentioned in my, in my Scripps. Thank you. We saw 92% most recently. So we seem to have settled in around that number. But it's still early days.
Speaker Change: Hi, Martin. It's Terry here. Yeah, we're pleased with what the plant's expansion has done for us in terms of recoveries. The Jameson cells are delivering, you know, we're collecting a lot of the fines that were previously going to tailings.
Speaker Change: we're pretty comfortable with the 3% bump that we were we were targeting with the project and and as I mentioned in my in my
Scripts.
We saw 92% most recently.
Speaker Change: We seem to have settled in around that number, but it's still early days. Like Ron was saying, we've got to optimize, we've got to settle into the circuit. There's a lot of variability in our ore, so we'll understand this better as we get a little bit more time with this new flow sheet that we have.
Terry Smith: Like Ron was saying, we've got to optimize. We've got to settle into the circuit. There's a lot of variability in our ore. So we'll understand this better as we get a little bit more time with this new flow sheet that we have. That looks like it can go to 92-93% inconsistent basis. There's still 7% left at least, so we're never going to stop trying to go higher.
That looks like it can go to 92-93% inconsistent basis.
Speaker Change: There's still 7% left at least, so we're never going to stop trying to go higher.
Terry Smith: And can you can you do something in terms of adding a crusher up front to increase SAG mill capacity or in this way increase capacity? What what is the next step you know that you're going to do? I know that you at Waste to increase that. I don't think we have, we're not sag mill constrained. Actually, we're got a lot of got some capacity there. The ore tends to be quite, you know, we're getting more, we're using more of our blasting to for size reduction than the sag mill. The team has a number of things that we're already looking at to look at increasing throughput from the design of 5,000 to higher.
Speaker Change: Can you do something in terms of adding a crusher up front to increase sag mill capacity, or in this way, increase capacity? What is the next step that you're going to do? I know that you're always looking at.
at ways to increase that milk capacity.
Speaker Change: I don't think we have, we're not SAGML constrained, actually we've got a lot of, we've got some capacity there. The ore tends to be quite, you know.
Speaker Change: We're getting more we're using more of our blasting to for size reduction than the sag mill
Speaker Change: The team has a number of things that we're already looking at to look at increasing throughput from the design of 5,000 to higher. It's a variety of things, different pumps, different trash screens. It's looking wherever we're running into a bottleneck.
Terry Smith: And it's a variety of things, different pumps, different trash screens. It's looking wherever we're running into a bottleneck. So, there are opportunities. So you think you will be able to increase it to $5,500? Our guidance shows that we're at 5,500 for next year. Okay, for next year.
So, there are opportunities.
Speaker Change: So you think you will be able to increase it to $5,500?
Our guidance shows that we're at 5,500 for next year.
Okay, for next year, next year, yes, okay, yes, sorry.
Terry Smith: I'm In terms of next year, how much can the FDNS sell? add to them. That's too early to tell, Martin. That's the whole intent of this year. But the team is hitting it pretty hard, you know, to try and do the work to, you know, the geotechnical metallurgy, mine design, you know, what infrastructure is required in terms of everything out there to try to bring that into the mine plan next year, which is, again, I go back to our team, Terry and everyone else at site. You remember the first drill hole in the FDNS was Q2 of last year.
Speaker Change: In terms of next year, how much can the the FDNS sell?
add to their mind plan.
Martin: That's too early to tell, Martin. That's the whole intent of this year, but the team is hitting it pretty hard.
You know
Martin: to try and do the work to, you know, the geotechnical metallurgy, mine design.
Martin: You know when infrastructure is required in terms of ventilation power and everything out there to try to bring that into the mine plan
Martin: next year, which is, again, I go back to our team, Terry and everyone else at CITE.
Martin: You've got to remember the first drill hole in the FD&S was Q2 of last year.
Terry Smith: And for us to try to bring that into reserves, you know, for the 2026 mine plan is, it's pretty aggressive. And it just shows the team is focused on this. And that's, that's what we're trying to do. But it's too early to tell, Martin. It's too early to tell what the impact would be. But it could increase. The idea is that you increase the grade in 2026 from the previous plan. And if you increase the grade and increase the throughput, you can have higher. I'm not sure if it would be able to necessarily increase 2026.
Martin: For us to try to bring that into reserves, I don't know, for the 2026 mine plan, it's pretty aggressive and it just shows the team is focused on this and that's what we're trying to do. But it's too early to tell what the impact would be.
Martin: The idea is to increase the grade in 2026 from the previous plan, and if you increase the grade and increase the throughput, you can have higher production.
Speaker Change: I'm not sure if it would be able to necessarily increase 2026. It will, I think it could, it definitely could have an impact on the new life of land plan.
Terry Smith: It will, I think it could, it definitely could have an impact on the new life and land plan, but this is going to need some infrastructure in that. Is that fair statement, Terry? What Ron's saying is that we'll have a plan in 2026 that shows how FDN can fold into the life and land plan, and it's going to take time. This is a whole new area, well to the south, requires lots of development, but there's great potential there. I think, is it a mine life extension? Is it a higher overall throughput rate that we can sustain from the underground?
Speaker Change: This is going to need some infrastructure in that. Is that a fair statement, Terry? Yeah, if we can. What Ron's saying is that we'll have a plan in 2026 that shows how FDN can fold into the Lifeline plan, and it's going to take time. This is a whole new area well to the south.
Speaker Change: requires lots of development. But, you know, there's great potential there. I think, is it a mine life extension? Is it a higher overall throughput rate that we can sustain from the underground? Those are the questions we're going to answer.
Terry Smith: Those are the questions we're going to answer.
Terry Smith: But in terms of getting into production, when can this... Stewart. It's too early to tell, Martin. That's the work we're doing this year.
But in terms of getting into production, when can this...
Eric Stewart
Martin Pradier: It's too early to tell, Martin, that's the work we're doing this year.
Martin Pradier: Great, thank you very much. That is pretty helpful. Thanks, Bart.
Okay, great. Thank you very much. That is very helpful.
Thanks, Barton.
Chester See: Thank you so much for that question, Martin, and since there are no further questions at this time, please continue your run. Thank you, Chester, the operator. Thanks, everybody, for your continued support and the coverage that a number of the analysts on here provide. And yeah, we're looking forward to Q2. The exploration program is so exciting. There's so many opportunities and also the team on our sustainability strategy are making a lot of progress and we look forward to being able to talk more about that as the year progresses.
Martin Pradier: Thank you so much for that question, Martin, and since there are no further questions at this time, please continue on.
Thank you, Chester, the operator.
Speaker Change: Thanks, everybody, for your continued support and the coverage that a number of the analysts on here provide. And, yeah, we're looking forward to...
Speaker Change: Q2, the exploration program is so exciting, there's so many opportunities, and also the team on our sustainability strategy are making a lot of progress and we look forward to being able to
Speaker Change: talk more about that as the year progresses. So, thank you again for all your support and everyone have a great weekend and happy Mother's Day to any of the mothers on the line.
Ron Hochstein: So thank you again for all your support and everyone have a great weekend and happy Mother's Day to any of the mothers on the line. This concludes today's call. Thank you for participating. You may now
Speaker Change: This concludes today's call. Thank you for participating. You may now disconnect.