Loading...
Docoh

Ero Copper (ERO)

Participants
Noel Dun Executive Chairman
David Strang Co-Founder, Chief Executive Officer & President
Wayne Drier Chief Financial Officer
Makko DeFilippo President
Paul Nehlen Vice President, Corporate Development and Investor Relations
Jackie Przybylowski BMO Capital Markets
Orest Wowkodaw Scotiabank
Stefan Ioannou Cormark Securities
Bryce Adams CIBC
Dalton Baretto Canaccord
Grant Moenting Scotiabank
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Thank you for standing by. This is the conference operator. Welcome to the Ero Copper Second Quarter Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Executive turn for Chairman would to conference opening I Dun, Noel of Instructions] like the to over remarks. [Operator Ero Copper ahead. go Please

Noel Dunn

Thank and website as announcing financial news statements financial you, for everyone. ended are is second the June MD&A three XXXX. results our quarter XXXX months and release on available and morning, six good Ero's The XX,

SEDAR available on potential our EDGAR, stated, of all discussion risks operations making website, of otherwise we and Unless on statements on of recent factors performance the involve their will and that businesses, our amounts the performance. business be most forward-looking and risk Company. refer and are usual, would dollars. a concerning As call U.S. uncertainties future on our We you impact for the financial in this to AIF

President, Joining exists Ero's Strang, Paul Chief Officer; intention are And vaccination fewer we reasons delta Makko We're me DeFilippo, Wayne due still case of mid-XXXX variant our the of rates them Relations. for we the exposure. All and the the Cofounder looking across suspected are COVID-XX path Brazil, no people and in remain to and of Vice place. Development early today of seeing measures the and Drier, on to signs operations, are in Executive Officer; peaks away increased unit work XXXX. term. count also Whilst relative uncertainty encouraging from Financial preventative Corporate have our clearly David President; seeing surrounding in and Investor call Chief Nehlen, prudence,

we will Gold quarter, second organic Mine, as strategic combined the and first NX balance organically be highly $XXX used of to strategic term, transaction, development operational our we've the objectives balance support Mine. in partnership, some NX gold the our the the stream Esperanҫa at transaction the of to the pleased on announced year several proceeds the the million, are and with financial $XXX the in well NX we the and Royal of transaction, approximately we half long Gold with which in unlocks forma in record to identified NX very the At of will closes, advancing have the results with project. pro a $XXX stream The Gold cash growth progress there our near made end value whilst our transaction as business. Boa our objectives. further and our million expect from We Gold a quarter MCSA Gold in of be Whilst plans cash with forming The develop grow million. aligned close

a and continue cash excellent execute trading In on New position and our We base broaden York the Stock to will shareholder we strategy. June, net be on of liquidity sheet $XX which, liquidity. giving million, over in enhance time, balance our the we strength believe us will approximately completed to listing Exchange, dual

goals our report operational committee XXXX performance of we as and comprised a mining. team year, We to sustainable during also formation This our the the highlighting as initiatives multidisciplinary a and our both ESG sustainability quarter, well executive steering change of related and at climate published responsible highlighted levels.

setting coming goals. our emission advancing group the performance strategy, targets to this sustainability Over we further other years, greatly contribute and to expect reduction as such

infrastructure challenges global the and future they company. manage post-pandemic organic activities. what while in evolving am we pandemic. as our the and as in for we anticipated challenges climate acquired on address ever we now performance. to today are of call energy for associated be the XXXX. a holds provide Furthermore, economic look increased provide recovery after governments awareness to spending copper all accelerates a as production globally. it David a initiatives, the as copper operations, COVID-XX of excited summary our work do electric fantastic of be to Renewable bullish will our only challenged outlook view. And growth, I as shows with support Wayne our to continuing are the I'm realistic environmental our MCSA and and I And will compounds brief when financial the Company's pass ahead, amongst the analysis prices to copper-intensive the colleagues of As review the grateful for over change would for supply these it side to update we which the to stakeholders need

our team available questions following immediately usual, will for be call. As the

David Strang

sentiment I our financial results Thank despite reiterate NOLs especially deliver while hard Brazil, Noel. to team, our to colleagues as strategic and have strong would like dynamic worked objectives, and to advance our environment. operating continuing incredibly operating in you, a

of of each of During across operations, by record cash average the MCSA record XX.X% achieved driven and strong Mining $XX.X the recoveries Complex, X.XX% performance million, second at metallurgical tailwinds. by of tonnes copper gold we we price operations processed a quarter, flow aided averaging over our from At during quarter. the second and grade copper consecutive ore XXX,XXX reported an quarter of

to continuation end. by to after supplementary well on tonnes the here This of copper mined highlighting a created maintenance our impact to point volumes successfully previously in upper creating grade was and quarter by value due from a that phase identify is to team of throughput was mill data planned team grades decreased The of first program ingenuity Brazil, higher-than-forecasted the as be in areas As which mill favorable [stopes] operations first of to scheduled engineering as technical and expected, the reconciliations due relative the the our sterilized. value yet project maintenance, Canada. by Mine services seeks production to believed another mine high-grade and commitment supported Pilar shortly within levels completed newly mill quarter offset

the benefits in on maintenance milling achieved of Mill HIG concentrate the mitigate we the Enhanced recoveries year. generated quarter-on-quarter HIG metallurgical by last and and operating XX,XXX to successfully throughput installed bringing copper also pound half We and the volumes increases capacity performance CX impact maintenance at XX,XXX cost demonstrating throughput mill pound. to contributed mill in MCSA first a per cash those true copper to in be CX both tonnes costs $X.XX Mill Mining performance allowed of returning Phase anticipate the Mill produced, rates, production helped from the more $X.XX We of the of us to for and overall way that capacity. original across us average design long an mill during in quarter Complex at fully will of the evaluate HIG in copper of to second tonnes strong of year the MCSA potential helping the go X of a quarter volumes its the ongoing quarterly detailed quarterly of to The cash production the the quarter. achieved to recently of third copper started planning similar

will guidance balance value expect production to of on grades within continue of the engineering we that from Mine, range we supplementary our the program While some provide balance, for to to expect ongoing levels the our the normalize year. upper Pilar

cash first to towards XX,XXX-tonne the full range. ounce. and year XX,XXX- which producing also $XXX copper of lower CX during cash quarter-on-quarter our unchanged than ounces tonnes remains as per which produced. to half increase strong mined towards achieve result quarter higher costs was of we pound end tracking guidance, all-in The albeit by performance, and XX% end of performance, year ounce of offset more guidance The production unchanged full Similarly, are well copper milled well, grades NX Gold to at per of in production XX,XXX lower sustaining Mine our a the of and production As delivered metallurgical we the processed range, driven of our gold CX a gold quarter. are positioned our $XXX per strong strong $X.XX higher and cost $X.XX costs

ounce, planned tracking of modestly we of approximately While in our anticipate year, the ounces rates. are half year produced second grades production a normalization to mine of year sequencing in $XXX per of XX,XXX sustaining gold we full first recovery of all-in the range and lower guidance at of due half costs the ahead the with

the ounces to As range sustaining low end a range of cost of well $XXX the XX,XXX of positioned per unchanged result, production of and guidance XX,XXX reaffirmed $XXX to to high our achieve ounce we end produced. all-in are of our gold

results the Our generated strategy. quarter exploration during exploration-driven growth organic and our programs validate exceptional to continue

part super a the inferred Pilar mineralization history and meter grade Mine. the extension deepening On the mineral depth. intercept sheer company of of within copper size of highlights the was shell in Valley, basis located we the Curaçá at X% grading over beneath intercept The best the the the XX-meter on current resource drove our style

of results, As of we incredible to particularly opportunities depth, to and design of the has at project, review deposit. maximizing are continued better-than-expected have a value-enhancing ensure initiated drilling we including value development shaft this review parameters and deeply, within highlight the

We exploration to evaluating are in are a we number our exploration that and also make share of to quarterly progress continuing program next in regional good hope opportunities update. our

will largely unexplored. in In Our exploration the quarter. study of financial to releasing ahead, the always and quarter forward located results Esperanҫa over the the our feasibility as the from resource. that broadly to current to our we recognized results project remains inferred Gold the the exceptional, the mine to results. third including beyond Wayne speak highlight limit I Boa was we optimization weeks intrinsic land mine, the which of best hole for results of well the for study mineral package, NX value history the call the discuss also look of performance our The of NX potential exploration drilled Gold the Mine have will turn now as

Wayne Drier

good you, and morning, David, Thank everyone.

combined $XX.X from during drove quarter. our flow David cash copper with operations the and mentioned, performance, of record gold strong As operational quarterly elevated prices, million

$X.XX did volumes to compared lower to cost production a half to Gold quarter. per the ahead full and CX the end the first year Gold real finished our compared us costs quarter, second production, Brazilian derivative to due of million, of a quarter pound cash foreign first as guidance. $X.XX the sales inventory strengthening strengthening at produced. as an for unit cash goods sales produced the portion produced copper our in Adjusted gold flow of first $X to the of EBITDA drove metal year our and delivered was loss and CX but up higher contracts, ounce despite volumes million. a year higher of were slightly the of during of of of of receivable. inventory to we're guidance pound well record sustaining higher per $XX.X MCSA increase Despite an allowed $XX.X copper real, in due bringing costs resulting of $XXX.X prices flat costs full settle from higher quarter, in cash for still EBITDA of the to costs the quarter-on-quarter quarter year, pound quarter, production the for operations were due goods the end of approximately copper $X.XX of the the half million all-in the million. CX of copper quarter accounts $X.XX the adjusted during to at cash that a range well the The resulting the down opportunistically stronger lower was exchange real forward-dated a realized ahead from the Brazilian finished our in the average per quarter-on-quarter benefit per first reduction While costs

levels. exchange We million Brazilian $X provided real between stays expect to per quarter, bound settlements relatively continue these to somewhere the at range to $X amount foreign and million

quarter or fully including per net income After $XX $X.XX second $XX.X Our diluted for million noncash was was unrealized million per foreign gains, diluted for income our share. headline net components, fully exchange the share. or adjusting adjusted $X.XX

end balance it is with the in debt than has strongest $XX and resulting at ever $XXX the cash quarter. sheet of Our million the less equivalents million, net of been, of

of with a closing forma balance the be of cash approximately stream, Gold $XX position $XXX mentioned, Noel million. approximately net upon million will pro our NX As cash

back quarter available growth final Noel comments. While ongoing hand do our liquidity the term. to a support now intend call reduce pay I'll to strong in we meaningful to portion third the near some expect the payments maintain down of revolver interest share to the to we to projects, during

Noel Dunn

Thank joined the who today. call you, everyone Wayne, and

by same X-month the we congratulate why for us important? in calls we that can this end I'd invested very that well as in us, up consistently am capital on Bloomberg, our to Simply which capital Q&A, ROI risk Ero absolutely return strong shareholders positions worldwide. calculated we I it delivering fee, of any capital. has leverage with averaged note run on to Before period, on quarter. because XX%, undue structure. returns open afford shareholders' at and colleagues versus finance another again to pleased is our the taking on And industry its approximately diluting capital remain and/or our running focused high In those like our in of team is, delivers Brazil by growth company our how repeated other to business. company without paramount creating in a this high levels This to business,

momentum Esperanҫa well our full positioned building optimization to are We of joining Thank look for to the year on and study. you forward further Boa deliver our call. guidance with the release

the for open to operator the to back it turn line questions. will We

Operator

Przybylowski, Markets. with Capital Instructions] Jackie The BMO comes first from [Operator question

Jackie Przybylowski

Congrats on strong quarter. the really

growing, Gold it's are talk of going Boa a about to the or what we Can is Esperanҫa MCSA? I that projects? medium we Or the in of expect bit in especially, cash Royal whether growth if the terms to in transaction program? going should that that's cash more of I the the be guess, be exploration you your plans investment, to sort Your balance at after Should closes. to term? little know near don't and in stream some for see mill

Wayne Drier

Valley to that well and with balance, financial well take stream, now very the it's to sinking also in only done building -- the aspirations be. primarily I in Jackie. to NX as placed for Boa Curaçá fund project the terms deepening positioned mine happy think, shaft on the which the itself. Gold around through growth but everybody Thanks, With smart within revolves right of place now not the and the Esperanҫa we've we're of And respect of to knows, us engineering our cash we're now -- a

highly capital. our means, starting to build do shareholders to are to and extremely And -- at believe interests? the how aggressively, As continue structure focused maintaining on take to invested grow cash on the we come the with and same with have Noel return -- and now best on in will best that, the we the value her add reiterated, and we to respect so And while that's that we that deepening move the capital a have ability we'll their while in Anthea quarters team forward to time to project looking power. highest

seen approval Now on the now nature Boa, lower that the are head able it. be be of the place, position that we have in the nor to we a strong not had market come for project a fund in we will But and Boa to on board of the to anticipating robust results the study. going as are

Jackie Przybylowski

late maybe of an if that you expect that, of remember on due should announcement And that follow-up time Is frame? correctly? do kind think early August, When expect the just quick study So decided? on a be you we approval shortly sort next that. the month study? I would after is board September,

Noel Dunn

be Yes, Jackie, of to the there We a that in believe, releasing a in year. we next study The ball the of and do me have month, some board early course, crystal the reviewed marketplace that don't now. terms at of will already looking I finalize front that month optimization we know will is want work terms new the to right study over that of it particular do time. half. I the to in in have

say. [indiscernible] if preempt moves to everything going it's we're of start board in also be appropriate our the forward looking half. the break next to half to management to first to, on what as -- manner -- team, number Probably certainly, ground But So looking first a in is me able for difficult half of the one, Boa year.

Jackie Przybylowski

more I'll That's just question, to and that. the ask one what then else I line understand time Maybe helpful, have a on somebody can is let chance. if

a exploration program it further regional mines. the results put And can in terms I what known there give existing looking or us regionally or deposits lot a you're of an so Can how you're sounds on -- around just you've known recently seeing update. bit aggressively from of your really little existing mines, you maybe at out like this color of your ask, You've strong broadly? point, got

David Strang

[indiscernible]. you as road Well, so I far orange get know, I jumpsuits, don't giving of like too of that can't terms in down

Jackie Przybylowski

you to. asking Not

David Strang

a update not With on respect quarterly to have the program. last regional did -- this lot

We are discoveries go way value regards to to the with they us. in near-term made a results Obviously, in drill the to at full with our enhancing deepening, regards to through. capacity we running long lab

so the we release during the the they that there. lab did took And quarter, priority through and hence,

We about encouraged program. around do have rigs, be I exploration on seven are on what The regional for October, I even that on it. regional of five to the of we program moves maybe And think the beginning the we -- more update. excited say, I and, than think, still would September, drill towards I it our lookout think -- end

I the think more with we'll to to progress regional information regards have fulsome continuing regards with program.

Jackie Przybylowski

for that was really I clarity on just whether was still you helpful. guys broadly That's pursuing. were looking something some

really that's helpful. So

David Strang

the program on how important put give the the that fact Let me do a work. information -- don't program out on away to fantastic not regional the team take and And we company. quarterly to this continue just necessarily does is basis regional from Mike

in we're with region, regards we're like it's I've said to in the not As not hitting. that past, the work the doing

remains regional our priority program. to company, It's the sure priority get The bit best company. to regional the we that this are. continue this significant making still program to and drill a We a on return

of the in time program on significant we our Valley. effort exploration continue regional so Curaçá amount to and And spend a

So and to emphasize all. about there is can't program are it no away the that moving from enough, us. bones And I that at it, not important we're regional

Operator

comes with next Orest Wowkodaw, from question The Scotiabank.

Orest Wowkodaw

I'm looking i.e., And sort at interested wondering at capacity shaft could this shaft making up point? in bigger your a of scope considering of include throughput; whether that at extension are Pilar. just about comments the project you a that

David Strang

the the You're numbers when talked projects. Orest. hitting released year, hitting you're talked project mean, we're market really was. in deepening the we've that Yes. there, When we the I about through and reading the what now the good lines last at to size of look,

seen mineralization. have that inferred You [indiscernible]

converting lot measured depth. that And already of and a indicated. mineralization we've we long to think higher to the way grade don't a So anticipated of see inferred I that getting gone now larger ore body into and us any

fortunately, a now are sooner able than time so us to in to we for to Anthea And and team team, do that as later, the give this to evaluate rather opportunity her to value a the certainly, try can shaft shaft. deeper there in sink are wider see, shaft previously than significant, opportunities of we And and that looking thought. we how optimize at potentially

Orest Wowkodaw

what us thinking of go that idea plan, remind daily perhaps an could existing that bigger? you're throughput the you how the and capacity in Can was much

David Strang

the plan bring regards the X.X think the movement other existing in, there of I that go that both the between through tonnes. shaft intrinsic to ramp. people million the to give to. and of about have to waste thought XXX,XXX movement and were value-adds it was previously of go can with the we where So you Right are could can't now, capacity But exact Orest,

people the other been production, in being And of anticipate shaft value-enhancing opportunities of up previous we've seen the and previously terms waste limited are that share with there potentially transportation ramp. the so have on increase looked now in that while us materials, brought some that at we do

of a I big think an as look where in see can in increase we I well. So But think is decrease production. costs opportunities somewhat operating you to

Orest Wowkodaw

complete do of you time an expect when on line And you that to up have analysis expected firm to plans? sort the

David Strang

next well, the groundwork the starting this Yes. terms year. work be looking of in to done and early in in We'll year. with break September, ground shelf done later we're the starting to -- have it Look, sinking that shaft some [sloes] of needs on

a as now. on as right moving with you forward there's lot So paying of that, we're can optimization we're imagine,

Orest Wowkodaw

And of thinking then Boa. in an not question. just study potentially terms idea yet sort a you're But realize the a number? at on tonnes-per-day least from, ballpark give scale I of what us -- type is could say, final of where released of you

David Strang

do reiterate, good will Well, orange. again, as not look I in I

aren't orange And jumpsuits so my favorite.

be a to you statement able would give forward-looking significant it that. be So to

together, I think we as in with what surprised can pleasantly things. the types resource, changes the the coming say the moment, at reserve of is changes those in and we work is are

yet. that cannot So just unfortunately, I into get

Operator

The comes Securities. Stefan with from question next Cormark Ioannou

Stefan Ioannou

Orest one mean, And you're extension quarter. the got you just terms you question do given change, what step kind just size of long zone to of maybe it's may in with location, reconsidering you Great want exactly just, -- are down nail -- of it the the Just take comfortable it sort on my how but further? to or I mentioned what too shaft, seeing anticipated the that of take in with pretty it? again, to going deepening

David Strang

the must at yesterday. been have meeting You board

are location of shaft very ore the current in body. the comfortable the side The with location shaft. the its of on is We

the accessing yes, we're the still shaft possible. of helps regards to And way with very, most ore body in happy efficient very the location us that so

we our no have there's -- anything shaft around that. So like or to with moving don't any regards issues

received we've That conditions. layout. excellent completed we just test the work to The regards the rock hole X,XXX In is with over down went feedback fact, meters. drill shaft X,XXX, to

So to to shaft surface everybody forward so silverworks we with sinking. erecting headgear the order that the start now at start geared is in moving looking that can the start

Stefan Ioannou

sorting that that in is the were Like ore where on give update of And with Or previously? at some working pretty of just efforts background? you you then along hard just that Can an [indiscernible]. I sort just are you maybe on work? us the chugging

David Strang

question. Good

are. We

of seen we with the bodies work regards we tested that We have that test it. the one hadn't some system. we've doing to And was to been with through last are the encouraged That results regards that there. innate ore deposits by

morph our you we sounds to for little And So of we at usage are forward, District to we cryptic. that to continue continue is what particularly the Vermelhos as move something the continue the now, know, the the to And as a -- to way reiterate the utilize is looking Siriema, to -- self-extension ways in we stage that bit X, to this production we the optimize of, But and between technology. starting and shareholders. call how best itself, have as into all is in is ore a different that each Vermelhos where we we UG we continue terms sorting develop, opportunities company for the areas. all to marketplace, bring number NX/NX ore related return deposits significant what from how a opportunities sorting is like that on deposit we are highest invested into to now that what Utilization seeing capital of of us, instance, see or in within sorting?

to highest Because that, upgrade we on it. as get continue lowest how know, to So optimize production to we optimize regards changes we plans do to best the it, the ramp. to continue to you the going do forward is that as we the at for can work us, thing losses. our continue And we it with

variability them, on of solid And differences so depending the ore the deposits grade. have and between different

can that in maximum to us available be Vermelhos optimize will District next be And and to into continue company will the months. over implemented deposits we terms the to technology that we of installed of of our in work the the course in order it ore-sorting initially, operation from material XX grow so the amount have that. to an But through XX that. of we overall will that And we on basis, up various

Operator

next question comes from Bryce with CIBC. The Adams

Bryce Adams

Thanks questions. the taking two. have I for the

clear around First of on progress got discussions few Or the a a include Boa crystal the in I so an next weeks little the press updated will the results that. confused trade-offs to be the that it's just made the the update update want I feasibility? and far? month, in by on release. or with

David Strang

Yes, no Bryce. worries,

when So could of study what we we it and a saw is bit feasibility that optimize of number study. a on update to the -- the -- we just Boa, background areas look

And some its terms And operation so optimization, terms those are cetera. in of in changes how had, production, they that significant et being in of looks terms run have through. of

So obviously, be related all of initially then regards with press XX the will to in that, we've information. releasing that days will And reflecting technical after updated released release, the those to new we what changes. be report

on will respect with terms a detail of study. as can terms normally seeking you a of as can to much But the what to we as provide the compared news try release, previous you're expect, we'll and of in So as that of in comparison, be we results full it the as providing of would much study.

Bryce Adams

should expect second half X.XX? full grades comment guidance the to saying the MCSA. or that of be is saying would would X.XX, Second You're that average revert question at the in half year? There's those Is the another in that should grades clarifying there one, full lower the the to around grades we grade up and it's X.XX%. second a and year

David Strang

the think be I close to half will X.XX. second

we been during we've mining. grade had of mining know, you The year moved reconciliation the As have the positive had. some from around stopes that sequence some development we due issues was to

of mine we've so reconciliation to going stopes latter part year positive due mined got the be in first that And to grade. that, before some the were we and

to study. continue optimization have highlighted, we we've engineering this move though, forward, we as As

mine areas comfortable have be to previously team were of And identify upper the to levels the feel to starting them. significant and the thought and availability when have in sterilized rate. we'll but continue in that We to as bring mine those

half right you at what we thing tell can year the grades the of be year. best beginning beginning closer guided of the the we to the mined think I now year, what is second at we the will

Operator

Baretto Instructions] comes Canaccord. The [Operator of from next Dalton question

Dalton Baretto

My just a first you very question, XX-XXX expect do to still -- year? simply put out this

David Strang

No.

Dalton Baretto

Can anything more? give you

David Strang

talk let's XX-XXX. So about

required, I -- and put publicly XX-XXX technical you when to company believe basis. XX-XXX Makko are Number this on annualized main are -- twofold. a out technical listed are years, a an three can the or new requirements XX-XXX the first confirm on and the four So to over you of report, report new one, [indiscernible]

required are you to if to a a out technical your Thereafter, operations. an put change you report have material or update

company progress you being have not look this XX-XXX the end here, now, at put continued to Valley the do and new of to right required our out year. Curaçá if anticipate we on as So we project a at

a report we technical do report, be technical a will not We new on obviously, Boa. And on anticipate NX Gold. put new putting to out out having

like So process. be but Ideally, in the work able and to we're with evaluating like and we we detailed longer anticipating guidance. right market will period provide peers guidance beyond providing, to doing forward of to be guidance, workable. the now, the guidance of to moving is, what to X-year guidance guidance right And what we that sort order to any make do now our the be more X-year industry, would achievable something a we sure will be we will need in we continue is is

at we a are towards fairly continue company the to we utilizing plant terms move know, in dynamic you MCSA. As of fully how

being make And guidance that so sure want to can that are to any the regards obviously, we marketplace. we we provide realistic to with

Dalton Baretto

out, looking that still you kind time so late of year? the you Or would put frame, And November-ish? next early then, same are at

David Strang

right But can year. next reserve to to early the now, we I as you give adjust I that this later think the best right year.

Dalton Baretto

debt at that's position, calculations, as your stands assumed Second of an see? kind Company just in It's as look is where like now. internal you at sheet you optimal right balance there and it to look the you said. When forward, that your level you'd on ROIC is going a great one

David Strang

than to I'm it over going to Wayne me. to smarter that. He's answer give

Wayne Drier

Hey, Dalton.

David I pretty think to Noel made it and in quite run -- I we and we've clear time, leverage. have and would that business business a been all long this we're alert the

when on debt. see take we never And a so significant look it, I going at think of us to amount you're

But I as to comfortable regards I look outlook there's the decide in would many creating come example to think I is time so market effective long-term is an at very for that an have think the point the I a for level -- growth in projects stream we number. and I commodities look what to outlook we manner. depth And more ideal the mean, a of that, creative. liquidity NX creativity that into medium and mean, factors that think the feel to at you in right? for be

to think underleveraged here two But got that a to of always But that, the over structure capital team. profile now. horizon. the projects better a right do as And we'll years, fair very growth we very on to understanding is we're I some have cognizant we've that. it's to as we the put said are next look that soon significant cautious we'll say appropriate three having what be as

Noel Dunn

high are that. a peers our let world, me of in bit. than that let the Yes, that of lowest the of me add we cost to carry Obviously, little a some add producers. Yes, one of higher can to cost as leverage copper producers level

justify We're borrowing not not afraid afraid our the ROIC to our we're basis internal -- can projects And follow so of of about that just have shareholders pretty closely. shareholders we're high this return. our think the don't use Bloomberg key But equity, of can generate that we level -- -- that very use it you when rules, and are the issuing ROIC, money. using we

or do debt you're out past how how and into get much in prices of your trouble. themselves mining Our the when criticisms they equity turn down, is industry then you're deep of leverage And growth, people math company. much metal putting for pursue the nobody seems onto pouring projects the to

debt. at of of be But we we'll the time, of are what structure, can support. companies amount rewarded fine. who you? fair and How by the can know, and that issue we know given still We you shareholder is, and ROIC our having them discipline Because over get the multiples have exploit higher So ROIC opportunities range discipline? maintain trading -- a front support cost in stronger

Dalton Baretto

last associated me. the look maybe stand top-rating one This of with one PGMs doesn't for the like higher-grade, Where understanding? on Just in terms of the Curaçá here [steps]. they're do Valley. our one's kind It we in

David Strang

So not Dalton, true. it's necessarily

put regards did that. see we stage mineralization. we're certainly the release, out -- to still are with at There of when do last think those we I news the In learning some holes, deepening some there in lenses. PGMs lenses that on seemed and around these found the edges some and have border But mineralization project and associated of to the also there. re-styled we be the

I think regards district. still we potential much right very to the are now, in the learning of a with position PGM

continue is who our in will to now evaluate is try lab us, to any respect with right continue some have get to interest move to there potentially about. [indiscernible] an the helping We think that to I be that would it's to behind increase in and as have continuing it, do interest forward albeit due with What shown continue able valuation But to be is but have and who I equation very that we we groups PGMs ability I better learn here. of their respect that opportunity interesting internally. schedule would concentrate, way clarity not rather of in own is we sampling us to PGM, including been at -- look the program and Company, very, terms buy COVID, that to now, to a

Operator

from comes Grant Moenting, Scotiabank. with The next question

Grant Moenting

Valley? even kind you're I margins. the -- said, the PGMs. those copper is going the still was nickel maybe, background is there. you my the That as step But also in story of in an wondering, I Dalton there in stole being on evolving there But process if further, Curaçá I just said, a going high learning question maybe on think

David Strang

illusive again, to We what nickel. would to things some respect with Eureka the put to still term to in But the seeing got a we've dike, Nickel that nickel. the speak, Yes. so do interesting continues can't on we moment finger fairy. I we're be hey, have say,

start and we continue on been evaluate that But a those to can and it able yet before Mike nickel part putting hey, nickel opportunities, regional plant forms evaluating say, program. Valley. to stream -- this nickel. recovering the stop to of a still be think commented the in and we couple have We've the I nothing we of team the opportunities in

to. Anthea As much as wants

right So bit that's at a leave now. it can that I like

Grant Moenting

Congrats.

Operator

question-and-answer to remarks. over conference This I like would back the closing to session. the any concludes management turn for

Noel Dunn

And operator. your the us: of look a our to come continued shareholders are enough great on and forward again, half of all And really Bye-bye. story, a time very in appreciate company. and following We to all all listen have thank our the regards of copper forward Thanks potential to on the year call to a we analysts efforts we and day. exciting Thanks, all investors. you the your can't good to call second who market. our all to who everybody. continue with And and cover move again, very,

Operator

concludes call. conference This today's

you disconnect lines. your may You Thank participating. for