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EQX Equinox Gold

Participants
Rhylin Bailie VP, IR
Christian Milau CEO & Director
Peter Hardie CFO
Douglas Reddy COO
Scott Heffernan EVP, Exploration
Dalton Baretto Canaccord Genuity
Arun Lamba TD Securities
Kerry Smith Haywood Securities
Call transcript
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Operator

Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Third Quarter 2020 Results Conference Call and Webcast. [Operator Instructions]. I would now like to turn the conference over to Rhylin Bailie, Vice President, Investor Relations for Equinox Gold. ahead. go Please

Rhylin Bailie

much, joining very you much, very Thank on and the for us call everybody, you thank this morning.

course, We statements of be number a will, of today. making forward-looking

continuous SEDAR and opening EDGAR. take to the over So the now remarks. on on Christian to please on visit our I do CEO, our website, our disclosure turn time call will documents for Milau,

Christian Milau

the to results injuries good and performance and very health and million very webcast. quarter here. today that good so present We record, third is certainly, in Heck today. on hours to We worked, quarter a everyone, to tuned. Thanks, and today welcome, three dull And and two had over quarter Rhylin, was Slide solid a strong. our team. X Friday of lost-time day And stay in place, X again, you world again not our pleased starting quarter so safety overall for a the by the had

In the visit our weeks COVID-related the quarter first really we're come testing so needed a strong Both mines, where load restrictions here. to up when in Filos most labs, of significantly. Doug the proactively terms ramping had can And the labs few operate. this did sure of in We've or our protocol. operating or I accessing Ross, during private were we've our proactively X we that Quarter instituting was of no had there very the each actually, even mines been sites quarter, so disruptions. we all we've chance during last down make and case workforce. the three. Los a COVID And in part quarter, impacts, of put is place testing seen

And operating announced that early Santa community later. September. get that give very corporately did trend that in we've manner Luz. stepped safe have this sold And with at came had ounces difficult just we few in bit place. discuss we of happened operating the Luz and of, be internal the and this saw a per year we year production So that terms production in alluded up considering during very of and in we ounces, in results, the blockade, really in all Other over really a temporarily positive last environment. 'XX, And XXX,XXX we Filos which Aurizona construction protocols Los pleased produced more operate of bit were Filos continues of the teams respectable and mines It any I'll XXX,XXX quarter, except as announced release, close to XXXX. We've the suspended constructed measured and And the guidance, due in end growth. Los here, with press mine more for didn't one into should operating we official Castle were the have growth, color things to in was to a Filos. XXXX, line a very sort Los the external under Santa and from built years. a September. approval Board on

a we kudos really to few on at we're kicking a also, team, years on set back. continue strategy clear mine California, And to really basically gold So we they I with as in able that challenging Mountain and deliver did job with in, COVID of Tom, that you Castle Doug and in to were deliver pleased environment time. that the construction. to height mentioned, in a And pour being good able the the guys did first

So really well done.

able promoted the and And Reddy, to COO nicely to guys again, deliver kudos Scott who's And resources who and Mesquite team, to congratulations to pleased with the really mineral also talk later. well, were Doug bit about the recently. little that to see a reserves that, September results also on and very increase in we'll As California X.

- lots week see the in continued after just call basically financial talks Board evolve our experience she Hardie our well pleased Board. of to so also So a technical he'll actually, about a just Peter at you in talking also her Santa be end to the results. Luz to Eyre some the And over Board. the Americas, ago, as experience And bit Board, this about Sally joined later we really brings and October. joining the of

Peter couple So welcome on next to her. slides the to by Hardie the cover of I'll And financials. over turn it

Peter Hardie

Christian. Thanks,

Despite to it $X.XX realized translates of QX's had $X,XXX ounce. on Earnings an our strong saw QX income exceed financial we sale Slide our company's and, revenues, share the So price adjusted for Filos, to its of every profitability Los $XX mine at $XX we're million. cash $XXX virtually X, the flow. in and highlight driver about had Equinox where from on adjusted mine quarter almost million. EBITDA, including $XX improved the results was the key per financial $X.XX price. revenue, million an QX from quarter, XXX,XXX results. moving of QX issues an quarter per $XX a is QX operations, earnings financial over $X,XXX, of on for of metric, $XX million over This an an average ounce gold an the were financial basis, million operations million $XX performance, We and, and profitability. the Revenue adjusted ounces an and basis. for increase of $XXX of increase earnings almost on which on million. We gold, had We basis,

operations We million. in cash That's QX, before was changes million day. capital also million. was $XX flow. In working flow good had Cash from $X $XX a it

the QX financial company strong balance for strengthened the for results that's So strong our And sheet. performance quarter. a operating by further those

million on debt was $X.XX the As revolving in-the-money, credit and exercise in million notes convertible million $XXX with $XXX had that's an average at $XXX of the company September the Net well XX, million leaves quarter, the down cash, after facility. liquidity. a and of that we end includes $XXX share. price are of It with over that in paying

notes you September net to actually those shares, million. converted $XX XX, If we as position a cash have assume are of of

Solaris sheet. On XX account or value our are Our investment It financial for $XXX strengthening investments CAD we market statements book the We in million our XXX our hold balance a million. million. in equity also of million Solaris value of Resources. $X has shares in was the Friday,

exercisable warrants shares it and that Another They the in sheet. another balance up a and $XXX XX could October item - expire million have XXXX. strike price into can to million contribute bring that our might are forward are liquidity that going to under $XX

sheet. still And a selling Filos, cost much stripping. all-in-sustaining a what at and had our for the results than track that's exchange. on On plan. retain low at next at planned grade start increase guidance expected of all-in-sustaining And we is we're a the higher cash foreign favorable attributable and was tails an well with producing our operational quarter of on XX,XXX for our strong actually to lower the our the The planned and better is very ounces lift note, the volumes, it's the we low was I'll cash cost and mine. So of year. balance slide, gold very mines. star by exception Generally Aurizona Los speaking, we good quarter, and obvious with quarter,

non-oxide The as a But gold, which to Brazilian for sold Mesquite and and are track. aid due has right material, we but are in operations well of that, the the in costs performing irrigation stacking all-in-sustaining over will costs other stable and plan. itself is lower leach moment. for water pumping started XX,XXX on improvements to planned is than actually increasing and produced longer ounces I going cycle, believe, The quarter, are increase a cash leach which pad. prior on that volumes Christian the speak QX to

So on year, ounces produced in the million XXX,XXX sold XXX,XXX and ounces of gold, we revenues. $XXX

company is ounce. Our across cost $XXX the all-in-sustaining cash our $XXX, year-to-date and is an total cost

to we Filos. results performing the I'm discussion going plan Christian the in presentation So continue all to what in other Los all, discussion for back hoping to - of by right mine. were to on over turn than operational

Christian Milau

walk we mines here we've for give just through briefly and and you flavor I Peter. to plan what to the here. everyone what in near See Thanks, Yes. each seen of a term want upcoming

suspension on X. suspended was on ramping obviously on Los Slide we X the for government and We went Filos then So to COVID. to starting and X. September quarter August. July And due up with It restrictions in

situation just down been this you And year. on it's maybe a color of here. I want at to X months for Los Filos So over bit just give the almost

agreement of we members agreement by We collaboration been announced under will as social the suspended access communities X a X and and contracts. X, our control Xrd land on in their blockade community, both and social of now signed a of September last So have increase a benefits run collaboration XXXX. more employment the workforce asking is the But since draw the from. agreement for activities primary community that as of until over year and which place, result the to Carrizalillo mining were had

regular blockade they've place. the discuss and and respectful is the Unfortunately, the grievances in We to have to still with that continue and date, to meetings understand concerns raised. community

Filos activities. significant than almost all production employer they operations or corporate we does and many can some and And provided impact safety and as using and vision, to requests, blockade, able potentially We stakeholders. good collaboration mine It provide equipment. Los for or our particular, significant we potential neighboring contributor health, continue safety people We really I'm not resolution seeking care, accommodate governance long-term hire before its believe other communities local Over to and to operate as underground checks, businesses others XXX programs to and benefits In region, to we so resume affect training of just our hearing, people obligations. sure screen the continue would employees large infrastructure cetera, effectively be a community's and our health more contracting adequate to have a And the and to is health its X,XXX solution Los processes affect must not improvements. education, substantial fix. them seek support standard has the and quick life, benefits the practices. background to background operate all a a and send remember, here, conduct medicines, to for checks. economic ability et here, Filos Filos can proper cultural through we meet or social safety employing normal agreements while are Los governance health, in Carrizalillo

Now we same locations, put standards place at all these in place expect are to have just that we'll normal the here. in our procedures and

possible. We equipment that suppliers. the local requirements as law, much We and under the between types also as support contractors services pricing there's and use cannot of bypass agreement certain local a businesses since U.S., But Canada monopoly sole we sourcing and trade new mechanisms. prohibit and Mexico

than that the optimistic must existing here and the in social do control we the operate, open supportive our and all community we rather resolve our we way long and of the policies. We're Any believe to road. fair, operations, into again agreement that rushing to to and must operations for constructive a this issues with corporate abide partners. governance be choosing to solution to are get all dialogue. remain In to ending back is short, Now by able in term operations our patient down amendments effectively and up result stakeholders return right really be

community to a Our build who of community, is through other is also, as with all long-term positive governor, this And discussions communities, face-to-face we've Secretary the the union to the Interior, been as achieve important well. stakeholders partners. believe resolution relationship best keeping the the informed preference are with a way we leaders,

bulk work part and work of we in Peter the work one be we this pushed as little patience to in year earlier. this this a through did or the access that we in higher doing sort the for and be will Filos the of will about to grades appreciate The year, this guidance, under just those or has produced get is the Bermejal with to we think a to But later. long-term So looks withdraw and that, everyone thing those year. future of impacted resolution the Los it providing community. Despite mentioned ounces worked underground. Those as grades open last accessing into like were were Guadalupe pit bit of mid-XXXX higher and supposed and be on XX,XXX

in Brazil. turning then a - process. to turning And So there's delay a in bit on that of Aurizona to

As that's a quarter, XX% see above almost said, and Peter X,XXX strong per almost really mill the nameplate. averaging tonnes to pleased day,

ore moment, target comes of want working season, dry stockpile, year. that got and for new We've about on ongoing the to to probably XXX,XXX have this of which the we're During tonnes there. probably XXX,XXX at to which stockpiling the prepare way we're early the is in season, rainy the a X/X we about in

As Mesquite an And expectations the ongoing. the been exceeded in and also well really has which focus to It we've study, strike. had underground started on well exploration well. on the really again, performing underground the along both California, We've year late the issue publicly acquisition our next since a deposit. And as XXXX. extensions we hope pre-feasibility in has

to now, bought a this of that results life. drilling X pleased from the should Really as and non-oxide seen through. see almost we in with remember, California, it XX% XXX%. X-year life. focusing thanks XXXX, and increase to about so we're mineral still come transitioned another team, really for increase Scott the it's lower and to we allocated plus team the dollars results the And reserve in And almost three. have quarter here. of of into visibility M&I we almost said, we mine mine forward increase material, the in on in mine a see we've I it slightly the X. Peter that to when to We're We've expect far and - years continuing that. move had X.X, We quarter As maybe resource quarter drill,

continue fleet to year expect well. new to plan as to So this the we're exploration And dollars. that. investing allocating see continue going We'll investing And site. in we next in from results we start

So in we're really the building this confidence asset.

the terms quarter Fazenda and quarter Peter had slide. next as Turning three, in Fazenda Again, to Santa strong of more back a Luz exploration. and we between Recoveries that There's as attention next and the RDM It strong over improved. explore real to will get well. Brazil on district years. more were mentioned. plan a quarter, few another belt

sufficient Even continuously was there, I down have throughout operate when Doug to year. We it and were the raining. Ross, water

the see pleased were we filling water that So were to reserves up.

It Again, access sort XX next will months. that then to work to we access be in good elevated permit we good Pilar allow had will and The important to grade volumes performance as the us and in ores scripting the waste the other quarter XX milestone months key mine move achieved we that pushback, next the There over mining and by for to quarter. was overall. that And pit received XX higher was the XX an the higher milestone. ore. another the of

X. Slide to on Turning

of terms commented again, In guidance, this. Pete's on

been quarters year. the all Leagold the onwards, know, we are - from XX withdrawn, all we projects that in expect achieve the in look update. growth X has assets. at those because the X, the on And acquisition a Filos' gold As poured assets a we just Los XX. here for this the Mountain only and Congrats when year to quick guidance closed please March, really other note that development Castle other so team. March numbers of Slide October to And it's

onwards. XXXX We average next year. years the per and a be come. expect ounces will just that ounces producer X We're for to should for year Phase per year available the on year then study XX,XXX to demonstrate The in optimizations be quarter X from this And X,XXX will it moment. at XX,XXX about XXXX, XXX,XXX-plus to on working many in do pre-feasibility

Mexico, ounces average. expansion about in And term. Castle this then the take to we're long Filos on the about has potential year in Mountain to Los mine per really excited XXX,XXX this project So

delayed will As and That we've could mine current the looking and I said, update. the as be with soon place that the we the get hope higher-grade to further moment, ores. CIL underground the released but in well investment there's an reserves no as as also plan to At the study new process we speak as increase reinvesting obviously, with per will it's today, mid-next suspension, a to like over be tonne it pit which X,XXX resolution, in The plant, as And could we're able an the mine been turn study opening as up available. Santa Doug reschedule we'd day project. through And as slightly I'll there. certainly, open to now to just indicate new are at suspension, the again year. be this update. Luz Those to run you but due early

Douglas Reddy

period first Luz at you, mining. reserves by we'll grams X,XXX pit of is Santa total If Thank tonnes in has That's of tonnes be for ounces XX. to we mined per of project grade will X.X per a be X.X and tonne. about with will XXXX. QX construction The mining XX using just The go ore involve at of Page ratio waste. Christian. scheduled and million months, gold over a year That for million open XX.X strip contractor X.X:X, a day. can mining

the CapEx ounces initial is ounce, of life per it at is XX% average $XXX and IRR XXX,XXX the X.X $X,XXX and annual X% and after gold all-in-sustaining at per And XX% per ounces at years. of year. $X,XXX of for $XXX XX% case an of ounce, And is just tax period $XXX X.X per mine our or at $XXX production $X,XXX average over The ounce. million. NPV production ounce per per the - Gold mine million. discount And million. cost years the be $XXX be will payback after-tax would gold the first per net life is base is cash recovery And is Looking XX,XXX X initial cost years, year ounce.

is a with Going have therefore, do initial to infrastructure already of XX. a we place. low project, brownfields the This in Slide majority capital,

tailings So well already facility storage that plant. coming XXXkv in site. facility power have a as includes and existence line grid into we there's as water power, site the And storage at CIL

alterations to resin-in-leach. total plant convert So the to million the $XX.X plant the CapEx CIL from and

doing a tailings and facility be will this storage We raise water year.

and mined. So cubic for on have to up X up. million, G&A project starts at processed. for available The cost tonne $X.X per million And the $X.XX storage per at initial per water is totals cost. tonne processed. of pre-stripping $X.XX already when million is tonne $XX meters capital mining facilities Processing $XXX it cost Operating million $XX.XX

will will ores. jaw a feed plants crushing, crushing; resin-in-leach will a the a with that And We're ball we'll So SAG X-stage carbonaceous to a ore circuit. grinding, include the blended And from that's cone will XX% putting circuit. recovery. combination the be gravity be and have organic to mill X-stage And dacitic mill. in importantly, total maintain achieve carbon and X.X% with be the feed that in

Page and price The also the it's as ounce the upper based here. $X,XXX been to going the but capital gold sensitivities So sensitivities, base end Showing to million case million project done going and alone. to cost. per XX% foreign sensitive, IRR XX. you the to an on the operating has if ounce, from And obviously, $X,XXX $XXX see can provide go on we from to at price, cost, we the gold and most XX% $XXX NPV the exchange

Fazenda work will Heffernan going down Fazenda. prepared doing are of only X a into in being belt. could dip, in the on but there as at Santa CX Christian And the look which embarking could exploration by the that belt belt at at add a mined about are reserves resources to and is program main the a about a at Luz, Santa mentioned, talk I'll we Santa XX, at But Carlos It's can between moment. targets the large deposit, opportunities Luz. on turn development Santa the also been in that kilometers greenstone Scott and several We there extending deposit, benefit Page underground multiyear that you PEA XX of greenstone that's not additional and life it are deposit mines. If to Paranhos program Luz. already is on Luz

that excited we're So beginning about program this year. that's

over underground preliminary update per gold an in ounces, Net the grade of $XXX million. potential cash as it the IRR be mining X.X that's assessment, that's X,XXX with PEA is capital day, rate before project the the On ounce. after-tax flow, tonne. NPV was million initial with Total life X.X an $X,XXX is tonnes $XXX would a grams economic of done preproduction million of $XX a and a XX%. X.X cumulative And tax, and production of at with for years million per

budget and be the Process we've Page got with is if on do more $XX spent So Board construction. The when XX, million you of plant works to complete. We've our already advancing CapEx. at that opportunity. leveling. approved XX% we've has been some XXXX. site work million look particular plant doing early so $XXX engineering in commenced clearing And will is detailed

on major engineering We long-lead-time for have and on-site, and the that's of working equipment and Most nearly tailings complete. the ordered. has already additional been facility water is already the equipment been expansions, storage

owner's mobilizing the Contractors will November. Our in site. has already team mobilized be

we can X.X of look able hand The of and first back And the the for life have XXXX. in forward it Christian. and in targeted I'm down mine, that, is to underground. And opportunity you as exploration through going year additional being extend below, to to we see gold initial with chart a the pour QX that to

Christian Milau

Doug. Thanks, Yes.

catalysts. on concluding near-term focusing our on XX, Slide Just

And time commence but excited the Filos things want Aurizona very to here. low is getting right. we pre-feasibility The Aurizona. The complete resolve follow Mountain next potential well. for things intensity we're another number after Los of our to really underground study, XX gold and early get year spot things, new And this catalysts this also of new the the been project, as at focus which the a about started so Los the a the Castle the in take out upcoming have feasibility study in Filos here, our should obviously, do back is in underground really well And on sweet on to and achieved certainly X thing pour we are year. construction sort to over obviously, we'll the really months that there Castle, be CapEx Phase Santa see year, at to near-term and restarted So the looking at study expansion as Luz.

We disclose mines On we're we've most reporting focusing exploration extend in our website we of lot the well on a up We a We've the and that a at projects gone we starting are are now. lives. and that publicly. We our that have, continue indices. a to an a think some we're harmonize despite the more pipeline that momentum look situation. this keep of our move in of and on so we number of building And again, year included internal and We've information we mines the certainly actual fill but moment, need our prospective, disciplined the whether whether corporately, shorter - to be see be a and And quite has development merger front, you'll putting mines year. deliver Leogold The we'll they on certainly accretive we're had opportunities into on forward. or open as lot operation but reporting integration M&A started COVID to focus continue basis. XXXX. have building good and we'll sort over basis. for And midterm ESG more to sort it producing building sort continue in more of get to or attention actually market, We're annual eyes our achieved we it the on plans. combine on Mesquite got growth the Aurizona life so, last to sort the of right of multiyear mine as sort of focus mines on started

be that the and we'd would of portfolio enhance our in, our development, quality interested add to pipeline Assets assets. portfolio, fit of diversity diversification obviously,

we front, that but on on that got open of are a we lot eyes certainly as can internally So well. growth focus

a we'll I'd coming QX. of a in disciplined And we focus becoming continue overall, quarter, to producer. premier growth continue sheet the rock-solid our strategy got to our earlier. deliver Peter as we had performance So the say operating of strong out balance outlined as Americas on gold We've on

and Now I'd time to floor thank you questions. like with open the to that, for your

Rhylin Bailie

remind please can to Thank people you. how Operator, a ask question? you

Operator

Instructions]. [Operator

Rhylin Bailie

have I've Thank that We been do months a people why is been to thing about lot Los from been online. more updates few of things of couple last some and one people Filos questions haven't a press. you. providing the wondering And responding also getting regular the of over the said have we in

Christian Milau

those challenge with the and press. negotiating community effective been to positive media. be We that's Filos method we optimistic continue not prefer part discussions discussions Yes. believe as most respectful Thanks, the there's any believe through and update be so and of both at won't market much work press negative. our face-to-face far. that Rhylin. the we'll strategy. And we dialogue, It's certainly believe we But and we on when Certainly, locally, pretty we or this material to strongly do changes, or don't Los want the the be negotiating work

materially, they So change negative. things both you'll see positive as and

Rhylin Bailie

We've the also that? had you lots allegation at Can address about of there's questions Los that contamination Filos. water

Christian Milau

social I community. mean, the meters sure. It's, source our water current here, the local and above access ascent. about think site. I right was certainly, need last in Probably system to that place updating in was put some that system. agreement collaboration year we've actual to to the now, and agreed do upgrade water. Goldcorp that. Originally, mine It's that moved X there's Yes, the think, XXX actually away kilometers the elevation historically for a And I from

do in So putting that to significantly, we'll here, for community work And process. We naturally on any the couple obviously I the use guess, been once back ores of area. be to and any it, in, arsenic plan has of allow that to we're allegations, call well to processes. not we get related to that The our local in something basically, well, as the water community the water. the in place in we process in. occurring It's involved as able and that grown amounts quite there's as it's rock access not upgrades continue to with in a press And arsenic trace years come. we're

is in bit It's the little of there naturally safe drink. So a arsenic to probably water.

a the obviously, to sure monitor obviously, We our water. with pleased make clean put we've we regulators. safety operating communities regular want very good, that we're accessing And on reporting So our and healthy to requirements, health and are standards place. all permits And we and it have in regular with the all basis.

we'll with we So now on that work them that safe. sure upgrading water continue in but right the sources place to system, make are

Rhylin Bailie

Operator, you. please. lines, the Thank take questions some from phone we'll

Operator

next comes from Dalton question Canaccord. of Our Baretto

Dalton Baretto

A what going there's the can you But I'm sure not question commentary first as this? that start provided you're number to going maybe with triggered Filos be me. still my to the appreciate a surprised, be, in Los but question, But the blockade comments things to unclear scripted well. I there. I'm And are of

Christian Milau

channels. benefits, on a maybe down to leadership make community we we members Well, senior what a change the Vancouver we long-term sure down their the can't change dialogue right with and here always the of And hard here ownership resolve we Certainly, an with speak here that and it senior management that in are. change I on leadership looking this team to desires collaboration social as of in environment it's the from in it's up with there and for as they're enhanced there behalf maybe in certainly, and of in Certainly, it. manner. know And flavor the and disrupted well communication probably change some exactly. is been there That's down has working to of have now the speak. a want have our it in there COVID triggered. as opportunity it

Dalton Baretto

like you're Okay. they're sounds this ask, the it stance current But some And Is that to mentioned you just contract. the then current incremental to their sounds not contract. living their like and it posturing? of is up

Christian Milau

Yes.

different normal pretty communities, and of well as the really. I review. across place mechanism there's standard in or it's mechanism believe managed, there's monthly be There of in medicines, things But being very regular think like I et But that. it's some clauses for could on are and opinions to world sort pretty a resolving of the a scholarships certainly, provided. know certain number the whether grievance met there all strong amount that's views as I contracts being cetera, and

communities go it mechanism So as point them the But grievance in resolution. that. this bit well. of on that and with for to see supporting for to outside we'll it's incremental a benefits taking of We the believe work asking disappointing

it do good So people to get get sense. see it's extra we benefits makes education, if think to

Dalton Baretto

one Then Okay. me maybe here. just one last from this topic on

needs happen assumption give the them on move there what to Are fairly that forward? with On or is regularly, meeting both kind sides? of to still entrenched they you're

Christian Milau

we that of say intense policies. on on there's we on impact have I'd like a lot quite certain There them safety or ongoing can't our there's in alluded that health give side. call as I to meetings, And and sort and certain more regular governance give I'd areas any speak. are

big are to we a operating safety they're checks, background sure do employed. vetted they're they're cetera. et has focus. underground, and When We to to before or first equipment have And have be it make people health

we just full compromise careful and we And that kind be of on we areas of those we of need control a around very the to need certain operation. sourcing source certainly So and how to can't level. around contracts, to contracts have also

tend on. more flexibility other the Some some there's good we of be the provide to obviously, that social benefits, to community. things collaboration They

Operator

Lamba of question Arun Securities. Our comes TD next from

Arun Lamba

Congratulations is, the Filos Los the Mine obviously, quarter. stuff. on

quick from ones X me. Just

talked M&A and look what guys You for. you about might

smaller that kind potentially about sense larger of maybe take these some with otherwise you look divest are because Or amount just happy same of the all you're free the thinking that might they how would to prices, of in portfolio the the generation wondering assets, time cash at the Just of the asset? you they generate? flow

Christian Milau

ones. environment, bit this performing of luxury, assets the in Arun. thanks, are the there's I that guess well as pretty even here, a small Yes, all

even we are with time, certainly, see So asset to and the the to ones. diversifies, grows, over flow smaller disposal happy stage, of performance pretty of enhances, an this the happy that cash as we're them, of or that all you all over generation the them, happen. see could think pretty at But two. time, portfolio. of could But to we portfolio look I contribution Certainly,

Arun Lamba

Great. And one. quick a just

of a position. has Solaris your up over $XXX mentioned million now guys ran kind You worth little bit. It's you on to guys

sheet to still kind would a Would net kind divest the of term? you Or longer shareholder? these hold the is look that you debt-free. at of if comment I stay look to prices? Just is to balance plan know

Christian Milau

Dan We're a over. were a doing it. Richard shareholder happy job in last pleased X with now. pretty And they months or we great took whenever the really and are right

of we a in it, got that assets hands turn see belief X a we We're upside about but But to going as believe to being could well. single it it's Ecuador more portfolio. the has. have the what could to lot the Warintza, asset that it certainly, So in really on in into focus couple and already there still also, it excited other ones of

have committed escrow, be we I We've to least. divesting. couple plans no for also of a shares So our years at think, to

we're right them to committed now. very So certainly

Arun Lamba

congrats That's Great. results blockade And me. to Filos get soon, hope it anyway. but the Los from

Christian Milau

Arun. Yes. Thanks,

Operator

Kerry Our next of Haywood question comes Securities. from Smith

Kerry Smith

Santa question Did you PEA didn't the update price A gold you update underground at in for costs? just the the that Luz. assumption only and

Christian Milau

one? want Doug, to do you that take

Douglas Reddy

on can program we want we whole it go that add gold to updating we light so on a of drill need work. updated was Essentially, It price as back that to opportunity more We so do then it's rest with well. we there know work open costs. And and asked we'll we're and do have RPA do thing project, the the to that an study, to the were revamp yes, do the something the update on. in the economics and operating But the of more while pit. Sure.

Kerry Smith

on have of would percent recoverable there that Okay. of gold, what the PEA, any is or all all? at indicators And XXX,XXX inferred Doug, ounces underground just that maybe been inferred? it Is

Douglas Reddy

have will I'd back check. I I'll and Kerry, you. to back get and check, to go

Kerry Smith

Okay.

Okay.

second a to try sort going study, and forward? the convert infill And PEA so, and I guess, program to further say? of PFS, question complete let's plan inferred you drill are the a a bunch was, or an some is of then planning And economic complete what my

Douglas Reddy

Yes.

when infill think an we're I at would doing Heffernan. One back. handed not designed Scott interfering was that with program. over drill while we to a the all I've construction, look

follow-on so so team to how do his interfere for program we'll at that that construction, and site. have we while the But in move to it the the logically review Scott don't wait we a can will they're midst drill doing So of towards PFS. with the moment,

Kerry Smith

Okay.

Okay.

Okay. XX years there that and Because get was of fair, make could that said like drilling orebody, timing, Would months the to then. work development the decline sounds I it decision so before you another there'd even engineering start guess, of of couple into to you a be be that maybe Doug?

Douglas Reddy

site would Yes, well. additional as there's for lots be pit that open also the opportunities of fair. on targets But

nearby would underground pit, pit the are the be on nice X.X other facility process and it with open open fruit there to that the the to in we look opportunities low-hanging bring as it for would dovetail for while So well. have years

Kerry Smith

Okay.

Peter just quarter per or Los holding maybe, this for Okay, what Filos then you're Christian, blockade? great. cost on And while is the

Christian Milau

you to do take Peter, want that one?

Peter Hardie

Kerry. about Yes, week, it's a $XXX,XXX Peter here. It's

Kerry Smith

still guess, correct? asset protection? well. Is the the to wages I you're that's Okay. just for paying or employees the that And the salaries, I as think

Christian Milau

actually... We've

Peter Hardie

ahead. go Yes,

Christian Milau

Sorry, Peter, ahead. go

Peter Hardie

No, go ahead.

Christian Milau

I suspended to Okay. actually cetera. certain Kerry, say, work, access can't people going can't et that to payroll site, we've obviously was

payment. So that we've time, reduce further, necessary. over slowly And if to obviously, that started reduce we'd

a kind So reasonable but bit could number cost. eventually a that's as some We well. carrying there is of Pete that more, flexibility in gave that reduce it

Kerry Smith

Okay.

a then, ask how much would that's it that So then, - I actually way? what if $XXX,XXX payroll that of can be week

Christian Milau

I if the know, number off of top don't you remember Pete, head? that your

Peter Hardie

I'll XX% don't, yes, to going XX% have one. but to you to should we back verify venture, get Kerry. that, it. that guess, I I'm I to on of

Kerry Smith

Okay.

is did of payroll? payroll? Or what that on How many of the which half it Is decide you not - the the which are - are people Okay. employees number? off how now half

Christian Milau

of at the most who certainly, in moment. the the Well, can't actual access people site work operations

on as So numbers, certain which that's and would keep involved those not having key that the to are this be stage. obviously at site, site well. management to paid not in the groups them have There security, moment working certain obviously are ongoing safe, process, the at other

Kerry Smith

Okay.

the to paid able that day are only the - the access are actually? that So site people every people being are

Christian Milau

now, yes. job Yes. right And have that a to meaningful do

Kerry Smith

Right. Right. I you. got

the XXXX. QX? be half QX, second the underground you mentioned But And the specific what of You a is for PFS sort Okay. can timing on more Aurizona? or a there? that bit is Like

Christian Milau

now. The drill finished up programs are just right being

the in so certain but into be months. I on with in and that. the QX, digging probably And it we new PFS-wise, XXX% would not will say drill I'm data coming that -

resources, drill Santa XXX,XXX target I ounces, of we've got a the inferred indicated inferred By that at now is underground underground, about gotten moment, if exclusive the XXX,XXX way, percent the on about question work look it the the to Luz on and you program at ounces. the your Kerry, date is underground resource do the think lot we've results but that's the rolling in.

to a indicated big But inferred as as between say be ounces it's also but Santa it noting I'll the check. underground that inferred, back So essentially could X. chunk XX-XX just of is and the there XXX,XXX But go have in over of at Luz. much and I'd

Rhylin Bailie

active your to How all of I'm manage? projects Luz have How going Again, online It's a Santa ahead. many an do projects moving the great you expect take do United to sequence the growth question you in to States. portfolio? in the see to bandwidth investor from

Christian Milau

Yes.

is, way that's I we're think project each in team a country. head there the a is them managing and country

project each we bandwidth lot at each like done. we've certainly like of in sequencing time. the certainly of a we them But a to manage have So almost country idea

Luz So towards Santa a then of Los done Castle and end may will it Filos wrapping expansion the a the overlap, done different up X, Mountain build. team overlap will Phase the could bit and gets next gets some with kind happen that, country, a of different Potential be lot, Santa year. happen but of will project at end Luz happen but obviously going with that a

it's management people that's as and nicely here, time obviously, front. the capital management front over on So been sequenced just really as well helpful

Rhylin Bailie

we can Operator, take call. Great. Dalton's

Operator

question our next from Certainly, Dalton is Canaccord Baretto Genuity. a follow-up of

Dalton Baretto

just little Castle wanted a I two questions. really Mountain, bit to ask about Christian,

study like of context So touches And water sounds your the it on latest [indiscernible]? the in putting the there. permitting has final on situation? changed the the you're What's situation the

Christian Milau

Now water. start me let with the

doing study. were to continue various We we sources as the water drill

good They're the that. So drilling been had we've on The tests as checking plant are to and site hole. the hydrogeologists water the on some every But of our closest have, pump we've doing rates actually on from We've claims the recharge there. property results we possible. that that. had in

end of along that's our the property. So southern

some got we've of that. coming really So indications positive out

power it the well. be XX about locations. One to right will say we way, Key would some lands, that also is. X,XXX we'd obviously the certainly go testing water believe up as even been And along of gallons private able I few per off-site, of from where maybe X some the we've So to line away, of then come miles there, minute. sort other water believe in a And is pipe

historical pretty flexibility various multiple we're is there's want sources west amongst a well as sort as four much and confident of possible. including water of sources, between water, we which So areas well those field and as well the existing that that field, the well field,

sure a been now. plan makes brand to mine for new It's that brownfield pretty that that But permits. work, test We We're this already one will it that in huge And not not is it's know completed come good twice. feeling do the I in existing our well, to looking amending of We've we're boundaries thing change an what operation So to study. site don't and permitting, will got like. the about when so within I permits, a so for goes far. be difference of operating have know is it all with stay EIS terms the sort And now permits. exist.

off XXXXs I XX operations remember now XX period, And we'll on for to looking again. or had So XX the those. governments don't amend for about and producing the during and 'XXs years, all years in remember early be Mesquite that And and that was producing was of Democrats had and where we both bring Imperial as can a both good Republicans. Mesquite County is. from we we've great mix and sides with again, well And parties. work there, Eastern San County, but as and there to jobs certainly support California And Bernardino Castle

of So maybe permitting don't a expect process. it will terms ton of I but change slightly, change in actually

You tend to deal with the the more than government. BLM federal and regulators local the

as almost So expect business of sort usual really. I

Peter Hardie

maybe right just one swaps, offsetting of now. then pretty And looking punitive way terms they're me. one Great. Okay. last Any and from in collars The that? gold

Christian Milau

yesterday? You mean more than punitive

Dalton Baretto

That's fair.

Peter Hardie

those moment, production. until the have it's XX% At - or they run only of like I XX% think It's mid-XXXX.

in out, let think put were from quarterly deliver on Leagold they I we'll did. to a They're and just the related merger run So historically basis. into financing place them those

we have in it's where of just basis. a run XXXX. obviously, levels, have the on And there $X,XXX become may But impact more price in in oil impact or into. impact. when to let in less to there's stable just was termination environment X run live price in every X these and we'll those did gold a sort to quarter last something the an $X,XXX to It negative quarterly up, P&L. I current and obviously, And quite terms seems the around smaller these of of sort deliver with, out higher of a less we'll big smaller months and So

Operator

question a of Securities. Haywood Kerry Smith next follow-up Our from is

Kerry Smith

Christian, are meeting weekly again, community? Are discussions? you you with you the of blockade the schedule And or are, Or what those if this? frequency they currently just actually regularly the on do how quarterly? is

Christian Milau

to last the do almost too including Again, detail, week, we've meeting out today. I and to much so, want don't been give day but continue every think over I

Kerry Smith

Okay.

Okay.

pretty it's then. So frequent

new fleet? truck had fleet, XXXX. you Mesquite just gear haul committed say fleet the talked And and to - is in that were loading at or a you trucks you new When about Okay.

Christian Milau

right mine life mine you're moment. through big going. No, coming sort now trucks beyond to investing looking of what upside a to this when acquired It's the always And double of see engine end at the still originally visited keep starting was, to that. were it. there's the rebuilds of But run planned an they it lot to time be at we quite we end and some and life, of at seems the be old Terex fleet there and for investment life in the certainly that look them towards to those their that have to

- CAT our CAT fleet of instead So the old the Terexes.

Kerry Smith

you next a CapEx me year number? for the equipment rough upgrade? that And rough give Can

Christian Milau

$XX in exact but Yes. in probably guidance. We'll that our million $XX put numbers guidance, you But sort we'll range. the to more out more give in that million of

Kerry Smith

Okay.

about an talked for Luz at the I or Fazenda. so sort might greenstone too What exploration And can Okay. it had a then belt you to that or number be year of budget also $X Santa along from Is less? just Scott that there quantify? million

Christian Milau

that. I maybe might mean, comment how we give Scott on let them? I will much

Scott Heffernan

in have now process started budgeting Christian of we kilometers right good X,XXX middle explore and lots do. as the to and square We're planning There's regional with for of work the to program. XXXX. there mentioned, But

drill year. work to definition synthesis pseudo-sampling, next lot that target we've we'll doing compilations - work with target got up mapping, underway. follow a of Crews the work are So sampling, surface prospecting,

and lots near as well millions program, Fazenda the of chase fruit in be low-hanging district. as mine, Santa least. So significant I several dollars There's hope it would a of the to both Luz

emphasis right digging data and the So really it, we're into is now. a big put team the to going on

Christian Milau

I it was there much of we're that is exploration how to Scott, could going it's haven't going $X yet. worth we to fair matter allocate a we to just to decided fair say, to quite do next million million say probably of good and - there's say year, $XX

Kerry Smith

Right.

Okay. But generation program and it's be prospecting then? more and likely that would that target XXXX drill a recognizance be would not

Scott Heffernan

drilling. we can we're No, to moving as fast as

comfortable But and year, drill through matter some advance that we targets able the chasing can of pretty targets XX, to we moving up the next throughout in pipeline drills amount as keep a we'll that this field of modest year, drilling significant sufficient the we will year. some turning It's drill the start We can and a to have of of as building there's on already on going permits. of XX be drill-ready number exporting expect crews. aggressively drills

Rhylin Bailie

Thank so remarks. going Christian. back nearly of it Okay. to I'm closing time, you, We're for you turn to

Christian Milau

Thanks, so time, exploration catalysts good exciting Yes. keep number everyone, lots an of coming, today ongoing. lots here get And your and we of questions please of way. thanks, Rhylin. to resolution There Los future of are eye got here. Filos. the Lots space. to hope this on a for on a projects And on We've

please and at year-end. the to look speaking the you. you So on keep Thank to space forward it

Operator

This concludes today's conference call.

your pleasant Thank disconnect lines. you day. have and for may participating, a You