Equinox Gold (EQX)

Rhylin Bailie VP, IR
Christian Milau CEO
Peter Hardie CFO
Doug Reddy COO
Kerry Smith Haywood Securities
Mike Parkin National Bank
Andrew Weekly SmithWeekly Research
Call transcript
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Thank you for standing by. This is the conference operator. Welcome to the Equinox Gold Fourth Quarter and Fiscal 2020 Financial Results and Corporate Update Conference Call and Webcast.

As a reminder, all participants are in listen-only mode. And the conference is being recorded. will opportunity there ask presentation, the be to an questions. After Gold. to I President, conference Equinox would Instructions] turn Investor now for Vice [Operator Bailie, like the Rhylin over Relations to Please go ahead.

Rhylin Bailie

call. everybody, Thank Anastasia, us the and you, you, for thank today joining for QX

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

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

Christian Milau

Great. Thanks, Rhylin, and welcome, everyone, today.

health work year, X our on at impact slide a busy good was very running safety over looking XX,XXX COVID the the year, when performance people. to X,XXX a Just and people And past tested lots front only key and year [ph] very we the we and and a number integration go, safety a and for mine of workforce front the year through finish and is strong good taxing the just heck with COVID this a on had under a on business. the year during during on

per and we’ve an I job. on multiple done person think So excellent tests average,

through managing the good difficult cost So, the mines performance. quarter to-date kudos to for year. had production We that highest and

talk this will So, We Peter had to the go solid here. that the year, generation, end big few we’re slides and investment year. with into very pleased year, in as a we cash a good about

study in quarter. Mountain front. commercial Castle X the extremely next during good to fourth corporate on turn for ongoing release few we’ve for development that slide was and over and production then to and number busy When highlights busy the hitting year. with the Mountain we The year going optimizing So, X, and into been Castle the Phase weeks. end production the ready was Development in feasibility

update mid of is Mountain feasibility also coming behind open just out during Castle a so, So, little bit two, out. come underway for on part eye Los is quarter that X. two, keep and study Phase Filos behind an quarter during

good off and terms of And finished of which drilling that some reserve at the we’ve in the expecting give and a expansion. in underground to we half addition results PFS study year. that, second out Aurizona, We’re the resource to there’s expect to this underway, market in from

on and that reserves lots information, exciting lots resources. coming So, front, new to of some additions those

that So, a year big on front.

nice free year to basically there. and and the did a saw and a who also it last kudos generated great years team We’ve two pleased Mesquite we’ve owned Scott now, and XXX in job years, the also couple million increase really of resources reserves cash We in of over of And substantially $XXX almost for forward flow performance with million. and Mesquite, just resources and over a reserves overall. just it’s increasing over just

that So, two almost price repaid purchase years time. within

XX% good complete. $XXX the So, Luz with capital. Construction about appointed million to we’re and return Eyre excellent feasibility started released of high Board. We’ve Also, Santa is strong really results, project, now the also Sally performance.

to Gold in her the office welcome Vancouver. one And Leagold also So, now are We integrated in as announced merger. The year Premier the teams this we past well. acquisition.

front So, on well. very busy corporate development the as

couple walk to So, financials of through Peter over you next to I’ll pass the slides. on the

Peter Hardie

Christian. Thanks,

$XXX revenues sold we gold year. ounce, about had of a ounces you So, million. price We average generated XXX,XXX and of good $X,XXX which on can slide see X, per of realized

of mine the a led out we a in our $X.XX year, Income during the and of It all-in generating when cash earnings operating quarter diluted, $XX to -- non-cash million $XX $XX you million was charges, front, On working an continued is end strongest of importantly, QX. share. EPS is number quarter adjusted for generated adjusted to is the -- share of which which the for our our our you $XXX quarter $X.XX a million of the non-cash capital. of from cash end $X,XXX -- for ops costs million. of for EPS cost just for before That quarter. sustaining. quarter balance $X.XX were at $XXX an cash cash under the an and changes ounce share, from Most That lot at ounce million a million fully or a strengthen that, $XXX sheet, with flow adjust $XX for the up in the earnings when income was of that’s

In sheet. balance addition, strong

if $XXX million million which it’s debt, you in $XX have in-the-money, equity, our net of assume net converts cash. We

after dollar Our net the $XX you million. million is financing liquidity $XXX include Canadian about

well, investment for our addition, Solaris In it. account equity we in performed has really

So, it sheet. million only has of balance book a value in $XX our

that own about are shares we the US$XXX However, the value there fair of million.

the pathway and development we need sheet do. balance for strong ahead good, So to the that

ounces from Moving the quarters. we QX. throughput to here had stacked ounces the can and with higher quarterly can out benefited ounces increase or sold, that Aurizona me, during in from ounces pardon Mesquite strong see, as Mesquite, ounces, Mesquite, an by grade, of mine. and quarter, the product love strong a you XXX,XXX see we XXX,XXX our Aurizona QX XX,XXX ounces -- slide you and always in an a quarter. ounces in with sold. to six, from see Fazenda produced to came QX, had stronger produced results which increase XXX,XXX particularly recoverable benefited which in

X, results. slide which and operations earnings to highlights Moving our

heap in And the you of in because day from to on our in see to One finalized Los that is, requires legal the have IFRS made I scale back updated that make that prior why fair want been previous legal I to for year, quarters, purchase to none merger. to bit accounting item though created of we is use, our do QX. updated increase a to of the the point gold as would changes that the really out comparison noise, one. the the which we purchase Unfortunately affect Filos. changes assumptions can if you price merger apply the Here are pad, your those on apply when cash. you prior in emphasize -- changes those quarters have you leach value accounting,

it to a forward XXXX, Looking of investments. while we very QX, strong had a is year

We of have lot expenditures. a sustaining

are Los Final half reviewing that Castle Christian with statements. in point It’s of just we’re back our from our heard press XX% the of are February, structure meaning things stocks, that before we year, and gold the sustaining that have all-in of of today year the have all would in our are sales, and only of expect is the news for of a from release our Mesquite. and side year, expenditures help to our going and the to the our handing over of to costs the how first sustaining year. in You Mountain, Filos audit bit half to in affect we’re guidance that our That’s the second mostly finishing of first half expectations release to financial first little what XX% control results and of the of versus understand to -- year call guidance financial the respect of but higher unaudited. our up the the process

We couple and weeks. our the I’ll over audited you’ll expect MD&A to then. to the that of time next about in And turn done back see be Christian. financials

Christian Milau

a XXXX. bit the forward Thanks, of of run and in slide to number And through looking Great. operations a Pete. at a and eight, look look little little bit want just back a

at Los Pete up first, of Guadalupe Filos, particularly So, we’re opening here, Mexico said, the an open Los Filos looking year. pit. and during and Mesquite investment are, California in this phase first half the as

speak. to community, on production in agreement signed as ready also and the restarted ounces we up We’re last underground, just a the to full and in here of is We about Bermejal here. track on social the once to be December, which Los second year mine the I’ll start gold XX,XXX with Filos is reported ramped collaboration comment

and to that pleased back see So, operating.

last Carizalillo and basically key areas said contracts for around this were and and operation, points on an been year, collaboration on the particularly around agreement our with we’ve last the call, community, updated social growth future are sticking employment local their the of we As conference working leadership Bermejal.

the community. we’ve between those around sharing certain various ultimately So, and contracts, contracts employment local and awarding communities the and agreed clauses tendering into or

we’re So, to on that to a come those. pleased we resolution were able

contract, resolution and We’re close. the weeks. on and hopefully resolved final next the I progress, few still that ago getting we weeks the call when spoke on very have we’ll to during a few time since last you we’re We’ve in But, mechanism here. made the Ross were working dispute

here first finished this that new see going of the year, to very during of Pete expanded. being period get Los to to half little get stripping as pit the plan we and the to. made, pads and Brownie There’s being business progress normal and the alluded this The ore good Mesquite, stripped. is period. in during heavy At sort So, near-term some big Filos, in mine back

and of the pads. we So, are supplemental adding residual sort leaching some to ore

And outstanding exploration also to It’s the key of We’re been life. earlier, resources area been doing and I we to years continue this keep the and at last year a job said well. $X of Mesquite. performer extend want on year has million reserves. that of focus an increasing couple as mine to about Like spending a it’s good just this over

a of a expand confidence the future to for mine, continue in leased also reserves, the Caterpillar have and mine on opening new of and we this looking such Brownie, area new because we’ve fleet from So, to investments to and up while. resources the

ramping investment hit Castle, of year. later that in We When fourth quarter last mines those lots we’ve been year. we the look there So, this at production up. two commercial in

management. We’re solution points some still on flow leach pad working niggly and around

chance pad this year more -- capital gives increasing and build having pad, team of the the flexibility us all Phase the the actually to spending of really a Phase this put going and key so, investments flows expanding period to into work leach leach a the that on leach the year. on X, to X out flexibility whole That more operating the pad. One lot we’re investment cover a to using

the production year. lower of up So, half bit second the little a half the sort of first year, it’ll and we’ll ramp of in the see

mines. on number the operating currency performance those year, well Turning Performance well. steady we and pretty wise, looking helped Brazil the performed last mines last see production, to to very slide year, terms a the impact a good year expect of was cost. satisfying mines key And quarter-over-quarter. all Obviously X, year. this the all performed Extremely at in

to end So, see point of said, Aurizona, outstanding want out, operation. in Mexico and million flow XXXX, you’ll year mines free just about Pete in cash see the as year. other less you’ll of $XXX second do That’s variability to had it’s California. than last I an only

and a very So, good program In there. as large results lift. a PFS XXXX, stripping

that little the all sustaining to in with within elevated radius the last exploration allocate XX work out at capital year, satellites, costs. line underground are as prefeasibility coming looking a and deposits So, bit mine. as operating year, is HX this some in new or continue We’ll as dollars XX-kilometer continue basically on sustaining the but to slightly are in well elevated, with of potential study costs extensions, well, which

for about extend business as off capital kind going been future continues usual. the It’s to mine excited the we’re on life. here. of about for the really allocating and And Fazenda XX-years. We’re that

It’s usual. good last late this well, good RDM, pit expansion had permit perform. very continued large start, that again, So, We as start mining to business mill’s another contractors year. performing the the got a year. to

We’re spending $XX scripting each year. almost million on

growth historically, enough having rainy water always have year. a actual our dam water. a the portion for you But raw key water had of quite raw overflowing. this remember this probably as years’ been with period of during rainy production. a the of two year, in to full raw water get year. challenge is And is -- worth season the that’s capital a We through year So, this capital Interestingly, this rainy this it dam

pleasing really so. last smaller or to really, And just free delivering Pilar over flow, just on, So, sort scale, steady week cash of pictures state. see the continues

on the on weeks Turning put refresh that’s XX% a out increase ounces, XXX,XXX XXXX. XXX,XXX a that to few to slide to we number XX, just back. guidance

conservative are opposite our costs move X mentioned FX ounce year front. up Fuel, going towards and although continuing actually more the FX So, year, the as earlier. labor slightly we’re Cash slightly, on that reagents, target. the this million seeing is assumptions almost into

early than -- than Brazilian we been weaker both this I think, real expected or peso the year. have much and weaker actually the

both So, year, getting sources programs I’ll second and open investment at the some benefit CapEx. Basically, second the million of to the We’ll restart. RDM. new at a a here. substantially Los All-in ore substantially $XXX four the and $XX good comment moment. CapEx Mesquite, the improving Filos, alluded opening and Mesquite of be that the those Filos. Filos. costs up in Bermejal at that Pete sustaining quarter Los on Los also up at due as little open key at are Luz the from in Castle that be to the the looks Santa RDM, a as increased and half in on million underground pit expansion components quarter and Guadalupe really to, pit we more Growth

make key $XXX up components million. the are So, those that that

CapEx sustaining, total, million it beyond. really in this set us XXXX we’re year but a and about So, strong does on up the $XXX including spending for

So, gold. XXX,XXX we should be to ounces up XXXX, in producing next year, of

Turning numberXX. slide to

development Looking at the projects.

later well. and carbon-in-leach that per expansion, agreement launching And the So, as plant, start there investment we towards is I X,XXX onwards. that selected from hope will But, have plan soon feasibility is year that for be in out new to to running in the signed XXXX move we construction Los a or ton underground. up until won’t be that position an and social should day QX. the We’ve Filos said, here. that XXX,XXX basis to collaboration of on as study, fairly production a the on We CIL steady plant annual fairly ounces this Bermejal

and XX% In also tank half been construction, has is the work expected Resin pictures announced for foundation, just did start we the about in complete, well May. the the to on terms for of of in seeing Santa is steel concrete Luz, mining as underway, mill we ordered, year. cores second start last foundations. It’s

to by construction So, making It will physical there. done. a constructed progress be will start really good be The year-end.

be the we on and gold on At moment, So, pouring time should early in the XXXX. is mine budget.

see. to great So,

And some build there, one. of are the Aurizona that spearheading down teams helped this

ready feasibility. Mountain the Looking X at will That Castle imminently. Phase be

weeks’ We in few nice the time public out to the the expect a domain It to to in increase a that mine annual production, the here. show life, should base. reserve

amend construction year-end. years up potentially in starting then started done development of our the could we to slight three around And this We be is when pipeline. larger this we’ll this to and that, allow on then, also works end permitting regulators. back to at to us summer year really Santa of current well Mountain. On around of year that Luz will a the that be take will the the second looking of all with do a start us permit what in mill. permit, And Hardrock be that feasibility submission this expect by in to ‘XX, get process early we make completed these half could XXXX, which Castle we

sequencing projects. So, of our a nice

that, for number page announced December We at happened XXth. was The acquisition, Premier Premier shareholder think got week. I the XX. vote. XX.X% last Looking vote it The favor we

We’re approvals. just waiting the on Mexican antitrust

We the similar till few to Leagold. we had expect us in next here, that last It what took year mid-March. weeks with

in be will will have nice i-XX So, the under It’s stake, Premier implied we XX% probably we $XXX the be of value, should of up that spin-out about of sort Ewan just expect price. running. $XXX half second And probably a had Downie our million moved that. also then to March, share million. It’s visibility

Nevada-based and on see pure that to creation happening value focus So, company. already a nice that

the more slide Hardrock on number XX asset. at a Looking closely little

announced in after week, we through XX% earlier for we’ll acquire we’ll Hardrock. million. XX%, $XX bought which a we’ve Premier We’ll of hold Premier the We acquisition, the stake from that just and XX% another over As buy negotiated the to this closing deal. Orion close just XX% deals

this majority the the that the stake to region are pleased They’re and all see this put in ground and visit behind really it. a really to it our really we’re got able up it running XXX%. chance for stakeholders We local the be actually to keen actually project and see last feet on excitement that So, and week project. behind have we’re to say to

nice that So, to support. with start

just quick well, As a reminder.

fairly in permitted with few Now, Eagle locations team social Northern and built mines construction-ready the this [ph] is there, project truly Canada. study, that’s a the agreements a that’s place project, Nations. First in a It’s and Agnico that’s has been remote done feasibility

really in later place going all to So, got year. get the this pieces

can but bit a come. to X.X work later asset excited and for get moving cornerstone we will launch this this million pretty us we’re of acquisition a for construction, thing get this This years It’s in a deposit. completed asset before do ounce to the year. really So, be

So, over of the eventually. the to upside that on exploration in XX-year produce is potential. mine was an potential underground focused last and really early We’ll great The see for I week. scale pit. to it. There’s pleased life XXX,XXX ounces phases. open only Lots

there’s well, of to potential the some the west property. satellite As deposits

drill of exciting come there out results as really Some well.

ounce see other get slide It’s cost. all-in hopefully great assets we a Look the mine, we a producer construction producing at It’s Mercedes, about good starting So, on the flow. And numberXX Premier this sustaining later got as this plan eventually. acquisition. there, currently. of to $X,XXX year. into multi-decade it’s It’s project. XX,XXX cash

acquisition will We some that but cash exciting mentioned in Red Nevada. It’s about excited a good quarterly Reno, property. this Rahill-Bonanza, Gold, that i-XX long-term course, basis. on Downie of And three one there running can some generating properties. in be one real and help a support that mine does smaller look value an bit producing, really XX, them company. one. as think due effectively. could for you that it’s is When will of out the turning kind balanced sure. be portfolio a is plan really do Ewan of assets earlier, create a mining to day. just portfolio. gold completed, exploration We complex can with one Solaris, evolution the some we’re there. a part And be assets value together. between into to focused Lake be the bring team focused we’ve them it we surface fairly then, and So put in to in nice Nevada, easily production And as It Premier’s I with Hasaga sitting we think of It’s of a it high-grade And this exploration back project as a that at create done a U.S.-based Ewan project. logical able to

the with happy diversification. We’re

in in You’ve jurisdictions, a U.S., net being that the got all each sits fantastic. and portfolio quarter upside and and asset Canada, is exploration almost Brazil. the expansion Reserves this values, of potential just and Mexico these

exploration do some in We’re be almost balance get of really to we’ll because out, And is the these of all able expand each you’ll I exciting number assets show able of now couple a XX% will growth be studies pleased of results. there’s that it what that to this regions. potential have you’ll think And we’re really year and in these regions. and

anyone this really company growth the sort time going X couple not a does plan of We’re there. to nicely translate on balanced one. the now. ounce that rate, third the forward. years’ XX leading that mark and actually of growth of you just And see in that together, is in right can pulling Well, turning there’s what here. sure all million be as We that reliant sector hitting to? kind with I’m any It’s not to column in

see almost growing nice of here. and XX a we have million also reserve in base near-term the We that ounces,

the for except comparable So, leading end valuation on at at all peer the categories end. the here, of this slide,

numberXX. we up as multiple times. X months, our net key ounce execute, think to the up like So, expand that got growth. range, catalyst summary achieving a become on just to next is we that as year balance a we the sheet sort in we as here really job in of good move X place producer, with re-rating XX XXX,XXX deliver on of our of has from for to asset is to chance to busy into And that really been X.X, in over It’s to here X.X that slide million XX to XXXX. And peers of that that. a XXXX portfolio, value X.X really the the price And along

We’re into on mine be and XX-year have. the on program, going cost and will factor that XX% to mine the lives it. the have extending mostly mines have on exploration And a that life. that shorter base we’ve growth delivering $XX But got focus a will built focused the also production than we production around which million

in So, we’re the than close We’ll own support it’s couple the of on a inward M&A And our This nice looking has be looking reinvesting and little that some actually it’s acquisition. it’s last as be Solaris year, in it subdued. Premier they to more more looking really, the create probably portfolio. We’ll and see to front, been i-XX to bit integrate goals value. Gold years.

the our now, here portfolio. the internally simplifying think expanding value assets forward of we and all going on basically on I assets, delivering we’re focused the have great right

this to of cycle. owned a We’ve what of debt-to-EBITDA value. think buy scale, need very Diversity created jurisdictions we’ve strong liquidity, and investments low hundred well ratio $XXX net out go of here million the million below with don’t It’s we’re So, dollars at moment. well balance positioned of is X a the a We got to The couple sheet, we’ve and times. internally it. another create we Americas. in company at in those in done is mining-friendly pieces all all gold growth

formal here. future, presentation think and and Equinox in year, question-and-answer. a we With for So shareholder with part fun the base, for the a maybe strong turn exciting I is that be it our And we’re set think over common future of that, the excited really about I’ll core our end long-term vision a that, so. XXXX with and really up will

Rhylin Bailie

please people you you, Christian. can Operator, Thank how to ask questions? remind


Certainly. [Operator Instructions]

Rhylin Bailie

We from the in United Thank you. have Kingdom. question one an investor do

What You’ve in just the plans Equinox Gold reflected do to do outlined, is the market does for have share think that market years. and you the Christian, some to coming missing? believe very What price? in impressive the growth need

Christian Milau

of certainly things feedback is that we we have lot get plate. key and the one the do in a our think, I

So, really focus do. projects and puzzle. pieces core projects execution on think here. value to the the in on all in say We’ve I and the core where can opportunity your deliver the reserves the what create you those areas expand expansion you to about to all And you’re it’s gathered going

good again, has Now, and not we shareholder is of hope I just that time, just strong execute. companies balance the sheet them us the creating has in a us vision. year that. some doing and some common key with delivering matter and the allow short-term that to And on to on cultures have long-term think it’s already. vision that and a executing a put of together years something of vision, mine value place base a And the thing. a budget a per building and we’ve few think the is over just to M&A done last of I do be integrating job I got

Rhylin Bailie

please. from phone We’ll take the now, a question Thank you.


question next Please Kerry from Securities. The Haywood go with ahead. Smith comes

Kerry Smith

can Doug question. answer this Maybe

front to guess, of Would is on sort year? pre-strip happening year, over three equally or RDM. bit weighted, just the it I be the it’s these for for quarters, sort that Aurizona, a Mesquite, scaled big half and be and going or how Just clarity have more out out over scheduled pre-strips you of at runs Filos

Doug Reddy

a get as southern the through through strip holdover Aurizona year. front-end And ore. this that of is, from of year, it we’ll well. the RDM more go open we just stripping a in is pit. to most the And last year into continues end we as the pit front the bit Filos year. of up Guadalupe part ore again, and is Los as Mesquite weighted the down access weighted Brownie into

Kerry Smith


Christian Milau


think Kerry, of there, I May. obviously move tend with rainy season more we to sort the after tons, April,

evenly pretty probably So, distributed.

Doug Reddy

Aurizona built big the a very rainy coming stockpile into up season.

over think, million tons. I was X it

and that of advantage get work take rest season stripping for the back we year. rainy the So, the then as into of through the we

Kerry Smith


want And production. Okay. just least? this sort that over the for year a while got on Do few a XX,XXX XX,XXX, just you Doug, quarterly ounces what production quarters, you you, your expect bit the mine why of to of bit guidance XX,XXX That about last been maybe And RDM actually rate? talk I to a doing on XX,XXX. has is kind than quarter at is annualized a lower

Doug Reddy

to to We XXXX. it’s That pit that I with middle so we’re were more modest expected be in against that’s actually, of year is and last waiting a that through pretty for actually -- through that been the year said, why far grade. strip. And means would we able now this it’s It permits that say, the which do stripping, we’re going we’re came it into it, grade that. we’re focused good year, have through pushing delayed this doing getting on

more when kind but stripping, expected got a the bit so that maybe So, bump, was we in of we grade would have a into that into life the mine. we’ll we could get access modest the of plant, to the remaining little a get of better it going grade

Kerry Smith

the Okay. of does into... by -- all these year rollover the the that end of stripping then? And then, Are that finish does some

Doug Reddy

rolls it It rolls -- over.

Kerry Smith

be once deal millions value book closes, be the the Peter, will me for allocated position, what value Okay. i-XX your trading? company let financing your the you And there? just starts will Christian your book know or for and maybe the dollars, closes could Just what

Christian Milau

that? you, Do know you I Peter. think is that one for

Peter Hardie


to have have to going for We’re value we’ll accounting to it. so, do fair -- A, fair

it, going in million. short the at inception, $XX whatever be the to it will $XXX initially and fair $XXX of at value million, call that to trade at is, is around, So, shares be million the answer

Kerry Smith


Peter Hardie

I mean that Kerry. -- let’s really, is QX a question -- that’s a wait for

Kerry Smith

Right, right.

of going sort week I trades But just to book if just multiplied the kind be average and at the value? of price this your by took that’s Okay. first the shares,

Peter Hardie

Correct. Yes.

Rhylin Bailie

please. another Take from the question phone,


next The investor. private comes a [ph] ahead. from go Please Lauren Stany, question

Unidentified Analyst

you morning, Good all work. And your thank for gentlemen. hard

a I’m all-in CPA, a the As cost tad concern sustaining on bit numbers.

cut you are acquisitions the be to and able going going And to With costs? quarters? the to streamlining, are fall coming those in numbers

Christian Milau

cetera, is, those the half as bigger in costs, larger this the call of less will going the programs stripping develop think, these first at longer and I pads, impacts the life, expand the, on and our obviously, assets, trend we also et ore short-term Filos naturally but on, it, bring we year. down here Mesquite of have these and

an So, in XXX,XXX that we downward of as already at we’ve almost to you’re expansions you we of And like to got running first then and I think see some year, year, elevated sort that here have come fruition. ounces. trend. into And start the period few quarters get next this have

starting we well see be as time, as Filos over those You to start and costs its get production Hardrock gradually come costs. will as to Castle expand those all into expand capacity, lower full as down. we And to we

going costs a that here process we’re through down sure. over of bringing it’s for So, time

Unidentified Analyst

in itself XXXX? lend to that itself things more happen, will potential lend the XXXX be of of maybe to those the potential -- dividends? dividends maybe that Will Like after or

Christian Milau

and model, right, as future likely goal we’ll a is able capital allocate move we on XXXX the sure for heading growth. well of portfolio dividend to great XXXX the shareholders some as to but humming, but in be back absolutely, to development where capital And some this to is in more returns some think here not can yet, this that invest we exact in you’re then think But I’m spend I direction. it, Yes. really maybe, timing get we’re that. probably and of and growth get much more

Unidentified Analyst

you should help Thank too. That valuation, much. very Yes.

Rhylin Bailie

please? Another phones, the question from


question with comes next The Parkin Bank. go from Please ahead. Mike National

Mike Parkin

Could you Santa wins development speak And cost kind of tracking? you kind of some certain give kind can wherever kind Luz’s Are any on you to seeing of color? how is items? of budget

Christian Milau

and Doug, jump but start please Pete well. I’ll Maybe there, as in

tracking. pretty seen we’ve far, So it much

getting And It’s I a XX% that in think the as should at an of I think impact. well. at terms tracking the in where Northern we’re the expected XX% XX%. area behind from this for Aurizona, much plan Brazil we’re have had it’s with the be we little be a contractors stage, tailwinds X% or it obviously there And it’s more to on I around than rainy basically budget probably we in the to FX -- and up think, And are as that X% slightly better season, in finding environment of rate. work doesn’t or qualified.

in So to build it fairly because encouraged. we’ve good start really infrastructure of is is really And that a far, short and lot a place. got a it

cause asked whatever. or get site. what the critical come those key the on a there issues we from or or when about path from it’s issues that and China any Europe for to mill So could not are waiting are what’s delays, And

on mining concrete about steel more that going, pores, cetera. it’s executing So, early et getting work erected, getting the

And so, to wrong. things there’s less go areas for

if know or a project, Pete, I be I it’s But don’t totally really any? and course, tracking can’t far, nicely. it’s Of construction I missed certain. Doug so

Peter Hardie

No, think... I

Mike Parkin

Pete. ahead, go Well,

Peter Hardie

was I the same. to No, going say

Mike Parkin

on could could you give construction. expect us already you And you for of this on year? what the you Excellent. activity permitted an with the we have do And like of -- that that it’s idea just right. should us? deal project Can an share percent on a idea of give once where of engineering closes, us All completion Hardrock, kind project

Christian Milau

part. Doug. here comment part on the I’ll maybe comment to I first close. idea can don’t the is you know But on the maybe there, second

getting sort process started team. We’ve with to of We sites. of up have speed been the the out to

that the months. half be few answer the overall, clearing to and few to call project into date treat done into. team and second hopefully to And we a a like -- have work were Premier during And end we works. done, with just position points it, to we the We in exact construction. has place. of and launch And guess, it’s year, explore the, in happy look able be in this the very a lighter can’t early to and early predict the given I timing, done of we’re go want But has to some summer a works questions the but that getting just I on ahead,

get of just to line into not detail. six deposits, it, able bit of this year, hiring time going end you but you’re next of be be and capital if with months. to see, see would call construction And for where treat to can small maybe a second but in you’re works and So, capital you’re doing of this the ordering the to could later the team And at budget stage, spent we see lighter a give a some a capital, of a year, spend a articulate course. project a members us few going clearing, big the three launch few into half more that certainly things proportion full bit you

Mike Parkin

on And Okay. timeline... then

Christian Milau

don’t I know the percentage Doug, if you there they’re at? engineering, where know exact So

Doug Reddy

all half the of of Well, for quotes. was the firm the part costs. the on equipment the Yes. is work the costs based in all updating of latter Majority year

engineering. of and some the completion the on the XX% for the in needed highway project. complete camp part complete will XX% I and detailed the So, plant push establishing treatment rerouting. engineering add that TSF to to plant construction And to being year up water about there of phase prior and be is additional the of is an to half the able that second updating for on variable are main the to of for between initiate supplement closer place the this

Rhylin Bailie

take of questions questions -- a couple a take couple online of now. I’ll

the one the first I all asked So email. time by get

Imperial it, you I’m to there any Christian. employ at So, going Mesquite gold project? core answer with Are let synergies mining’s to plans

Christian Milau

stage, for that’s this sure. No at

there. or at Tom moment with got and dollars bit the on and reasonably pretty cheaply are we going what drill best the at the going we of We’re the doing we Mesquite down actually with find there. And adding through the and investment and exploring ounces have Scott happy work team

and we’re the complex, just gold linked we’ve one at got what people, two them a of because smelt we the we skills, able symbiotic on. and all one because as And long lots a we’re but mine at complex, as certainly the we consolidate, there of tax of not think we mines. the And think a systems, quite They not but Mesquite. that’s somewhat upside all set potential have that and So of of the Castle focused share And of relationship. to opportunity the there. life some

I So, got things, last a at we the moment, we’re in of probably we’re really year, focused side And on good of would a portfolio the and -- lot haven’t acquiring we’ve say, in terms done now. the that.

assets own on execute our mode to not in on really We at the moment. what on focused acquisition really and We’re our and got plates. deliver need we’ve

Rhylin Bailie

you. Thank

from question from Another or any union-related a your Do political see risks mining any locations? shareholder Estonia. of in you

Christian Milau

I certainly around think, risks. in that you you risks spending and generally COVID, shifts with would some is anywhere of, world And and say, environment maybe today’s obviously, I there I public terms tax more the moving political are. some government see think and are

I government think, before. I at are of a did looking governments lot so the or day yesterday believe increasing taxes. the UK

people U.S. top, we been say having the and where are years, The think, but think Castle are But, So, world. Ontario is know do went right at has three that’s for very friendly. is something we now. I a I the mean, mine I in of XX in we’re eye that California, the I before, California. jurisdictions can’t for on. keep one an certainly Mesquite in you go good we’re going XX in mining years fantastic,

has has government it’s improvement And leaning there. And contracting but mining. and has XXXX, stayed a little long engine tax the an but it’s more seen marginally, in There’s we’ve government really, the happy traditional bit very involved we’re back rates well. very really when at also in incremental Brazil, across the a we’ve have left labor around honestly, Mexico economy board, for key there. Brazil moment, And Brazil got as got amenable maybe we actually So, improved. all seen the the permitting, very, relations, policies improved. And a

story at We’ve on changes, risk. being one key than split if we can So, reliant think things now. we’re two that. withstand our And diversified And of are more got being part I rather evenly or the our a one that’s And is diversified. of portfolio. much assets and that countries amongst prepared four are there

unions, got In terms we’ve lot unions of of at I our think sites. a

of do learned relationships of good that it’s be on. need jumping area us. I’m in think is we’ve that I to partnerships to something long-term our always have have and have And and to and no We kind just there’s an far, manage major partnership, same with partnership. you And well. Los communities the we things And them. pretty improve work a relationships seeing Filos cultivated all do It’s from a like that’s risks good unions. acquiring it, few with at after we’ll out best and so that certainly, issues that But those

Rhylin Bailie

open considering online question from materially We’ve institutional the that investors levels? UK. buyback Is in is At of small equity extremely impact a cash got management the another one our doesn’t to discounted. levels, current

Christian Milau

always is Yes. buyback raised a on and get. the radar does question this market. in dividend I share It’s mean, get we question the it and

the fruit I at some on we’re the sheet make balance right that it I in from expansion low-hanging would to the signal capital away focus when I’m towards the be our to and likely -- really all that. to that dividend portfolio, our invest have I wanted to not a we stage. buyback think But, sustainable in we need to of some projects them and There’s to more go. to that get and think, we solid, a sure think remains do necessarily look our our profile growth with take ability and capital we’re the moment sure

by definition, because fleeting be momentary sometimes and And are, can they effectively share finite. buybacks

continuing keep with You just can’t them. on

So, we sustaining, got share here. view more price. worry that’s a want And something course, to of do long-term about the we

all stake. this of the and an management we have X.X% Company. all myself Ross, We’re owners team,

over the got to the and on a out But and share price. necessarily clearly, deliver time to attuned low we vision short-term value to do it’s here, we’ve here, that that do just we buyback. want don’t very the wins we’re right believe So, long-term vision

dividend where on point getting you to have So, we’ll a focus first. that sustainable

Rhylin Bailie

line? the take can phone please question we from Operator, you. a Thank


from Weekly comes go with question Research. ahead. Andrew next The Please SmithWeekly Certainly.

Andrew Weekly

the the rates little a the and as to than attention forthcoming work market highlights for in this Los is color is just I have And if add phase relationship Filos? vaguely, term? This done do maybe will of of guys don’t agreements keep good, community here I other think Well, extending the paying can this gold moment. the of year some bit and anything wanted in at appreciation a what But pipeline. share any you aligned to at longer really could you think Christian, the you you price

Christian Milau

Yes. key long core like an the those period commit local and that go you And we previously, investment lines a look in areas the bit the -- granularity and even make there’s employment on reasonable help water we system, areas and concern that contribute with vital reasonably we we the absolutely it’s distribution that communities plan we of the we’re community be we’ll earlier, we call there’s careful. hopefully and include will collaboration, to, after it, for think I in. that. sure three is to areas as for pretty making contracts. we and Andrew. medicines distribution in collaboration there, a sure and other continue make all areas is us, was all to But, time, makes difference, the communities to there, to focusing the don’t positive other and and the want a scholarships set lots were because it’s fair upgrade of for were a where sure to to can forthcoming other the last that pushing improving for few to it between community and to well. difference. that go are agreement. Things And want of any involve, calls that and of be And community wider can is things that committed of I that which leaders split social affect I key the into that And obviously a the Thanks, I little where agreement goal here a like

to grievance possible, we them possible. can they things. the And chance personal and a relationships amongst the at as build happened we’re before with in go it to as It’s as vital. person on ours, Ross’ builds as we’re work deal we’re this want those and company. with in as mechanism disappointed critical, And And as so people dispute years. don’t with and one the individual a senior and not that So, level as And is the that possible kind feel understandable good one just we clear this that mine something to with we of resolution said, And of the certainly experience in because solid and that want able relationship, us. level Vancouver mechanism stuff particularly, or background how we’ve happen played transaction as out. future, in well, blockades had of is and it institution, site all that. because it’s We COVID that come good they actually over get didn’t an or a as

in local and be personal told regular I And to we’ll relationships exercise. managing have way start will stem it’s that to in it’s also, pretty Ross It’s up of most about you having later think relationships. under regular those forward of countries, down year, just hard with having looking all a it the up it mechanism. the building all control. that the agreement having in when that to I’m that’s well, But the we’re the it like keep and place, So, part team be understood, dialogue a this working optimistic you able grievance And are to upon thing building the sometime to community. well way work. And those partnerships

it, is think in keep And it’s well. touch have about of are agreement shape. multiple going to hard oiled You shape, on that that keep that key the you and body And relationships got the just your work the an front. to in think relationship. it the and your keeps point machine I local foundation ongoing the I relationships it’s And keeps

Andrew Weekly

which But ESG unexpected. servicing the course, been Christian. appreciate I it’s for that, what And part sure to just for bring happening well many, largely guys I have guys here. I’m many that’s are this market, in as common ESG to trying to community up, listening decades and Yes. wants been a wanted And important back that it ground. think has you the find you of of and

So, I appreciate that.

work, care. up and good take You guys keep up keep the efforts the

Christian Milau

the a -- get a Andrew. into Thanks, we joy positive regions have and to difference we Yes. pleasure of And in. communities personal operate from making lot actually we

the The And that and testing done that. way on do and because of in seriously, have So, reducing protocols, impact year, obviously, we seeing big had much probably morally that. on COVID we you I’ll across take it’s last but think of a been just just we a and mines. been managing case vaccines. levels we’ll in the has as I of kind it impact touch job the and a mines and see that alluded invest operate -- in the U.S., mentally we’re that the really And have big portfolio wonderful of COVID COVID. rollout to

Brazil front. that come have a approached do that out. I about vaccinated year, everyone we’re order to the which I don’t be if vaccine a as in starting is in corner on to think to something believe this quarter But, we the chance We’ve hopefully, a be know And now we want second that. consider, to this been have even do do I want company seeing year. would we’ll that we vaccines, to turning

Rhylin Bailie

a new online One as of more shareholder brand from week. question this

first you now. country? Are your project of in thinking got You’ve that Canada expanding in

Christian Milau

were Canada. obviously was a few I always new time in are gold. with I add Ross we we on-site keen week saying, last Canada here, to years. Well, was think mean, I just first back in And

We’re good what people be great sort know really lot really mean, jurisdiction, mining rule in they’re back Obviously, reasons be to a here, It’s of excited to And mining. pieces there’s who in adding I of perspective. Canada. to that of of lots of the relationships would one shareholders at a scalable on social well. strong assets. be key Canadian a this are round of us, portfolio said number good our out very project will the law, doing as

So, yes, it. for we’re I project But Filos a pipeline some out value We’d we Santa particularly that full. there’s in to at hope on part about there is think We’ve not overlaps we development and moment, hurt. to And wouldn’t Canada, bit. got box, projects more we excited be at it a obviously add looking ticked really of can stage bigger to because bit we’re a that go Luz, as and not? our and our work the portfolio then and actively that mean, love Hardrock why then that bit a of Castle, little

and get to our So, will if have rush multiple to want accretive And we’re we’ve got up. on an for be we next do our in we what ever look a year valuation something. focus two, in And And the not hand. got anything to to in certainly do deal. we it or

So, on we’re people our having focus realize right and delivering well and that re-rating. that undervalued value now, portfolio getting is this

Rhylin Bailie

That is the for questions the end of our day.

So, us. for thank you, joining everybody,

will for please do that have in hand we’re And don’t think it touch. remarks. I to to hesitate get back after questions you about done, If Christian you now closing

Christian Milau

time Thank and Great. supporters, of questions key patient here. you, shareholders been for a thanks from group around who’ve for long and that and

creep best soon. we ride see for that speak again and in the over a valuation. building glad exciting And along for it’s re-rating pipeline company. you in mining and questions, And And thanks I in business. again execute now. couple have as think, We’re here, a portfolio growth, good-sized ride We’ve this as of you an globally be to us years to of got maybe to great our all up we’ll next the the the for you terms going


concludes This today’s call. conference

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