Hecla Mining (HL) 7 Nov 172017 Q3 Earnings call transcript

Hello, ladies and gentlemen, and welcome to the Third Quarter 2017 Hecla Mining Company Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Mike Westerlund, Vice President of Investor Relations. ahead. go Please

Welcome today operator. operations thank for you conference Thank Hecla's everyone third us for and quarter joining call. you, and XXXX results financial

market Private Form on in the was Our the Reform on available could and On to cause have this and release CEO; Slide XX-K, Form results we under website. with that risks statements. call, and Baker, financial morning information presentation shown of release disclaimer Vice in at Hall, statements management Securities and news Hecla's forward-looking Such involves made in Operations; beginning and before results risks Litigation projections Phil XX-Q, include open constitute securities forward-looking today's President, Radford, Senior X. Senior Vice statements and the projected under Vice the goals are President forward-looking come as Lindsay our forward-looking Act McDonald, team the and President, in law, along These which today's those issued Canadian Senior Chief the today Any Financial earnings presentation. by Officer; from President included Larry Exploration. Dean differ detailed the

measurements. during we disclose addition, may In non-GAAP call financial this

could the You GAAP at website of is the available our measurements to accompanying nearest reconciliations find these in on which presentation www.hecla-mining.com.

SEC will produce. Baker. call reserves, that or we disclose urge Finally, Phil extract resources, filings. such deposits our as in disclosures can our of filings are to not allowed you and indicated, terms consider which reserves, we which our are use are in I legally to mineral ore are with to the pass that, With the SEC, we cautioned we economically only inferred about that and Investors the measured, make and

Mike good everyone. morning, Thanks, and

Slide X. on started get Let's

both financial an Casa prices. mines' Creek The and zinc throughput has ongoing performance Increasing throughput been at and we result of Berard than acquired significantly now the lead was higher and increases focus quarter when largely throughputs higher are third Greens and them.

without quarter In costs the mines. upper our cash slide, are additional $X.XX sustaining silver silver, and per byproduct capacity given after In means margin all-in of significant negative mines. enhanced second XXXX The XXX-year economics only credits, remarkably is Our The history. strong productivity $X.XX to seen on shows high flow most is our investments there's right the ability free side costs. and a return this operating in and margin. throughput history, lowered has gold has most of gold has focused us this cost our our greatly and spending of Hecla revenue back in really a it been capital and both ever the the our cash was ounce in for most more the our per long-lived cost, history, milling find respectively. ounce sustaining maximize to these production other in generating delivering the the cash $XX performance That per of capital unit increased times before about ways estimates with and mines few our expect we've generated that low,

under-performance to we've us at that lower strike And Our is I'm at side at performance this strike and by the ongoing Lucky I'm like our I event a because of because are left told can the you the slide. share it's of grade other properties. available productivity improves held peers, back expected, exceeds short-term see where Friday long-lived mine the but surprised would the in have done and improvements than really this or the bottom performance a the

our And contribution ore. Lucky more a we're that strike and bottom me we and long-term has although the recently also minute. can made right but with because in that's our the Hecla strike the because the other a Friday on from meaningful like deliver we're decisions success productivity making from and Lucky to talk lot productivity exploration not value today, slide. not shareholder in highlighting a highlight is I'll issues I list believe what Friday the hope and let to finding cash future bit. the the doing you improve to are our of gears I'm on We quarter shift And little work about mines, the want it take other economics for flows to a I away how in ore, this, positioning more the only

the productivity. first is control complete. center So At Casa, on

updates and and cut autonomous Casa underestimate mean for the properties. which is know to these but Larry the on the supervision blasting, advancing are changers significantly happen. value that changing be And at Automation increase an and away have to for I ranges Slide of at to So, game going rock Greens there what exploration, we're that's Atlas tightened mechanical an we've often operating to others name now to let's we hope Sebastian annual Dean. machine per just topics Friday, focus X, will and will ounce those Generally, and operated is San allow the I process more potentially Creek And to also with in these company going the cost and on at level and us drilling Lindsay, and mining silver these Lucky properties. XXX our and agreement you don't estimates. stow Copco implementing production from estimates. safety. The success move exploration lowered the by productivity is go

estimate cash after lowest decade. for silver the give about sustaining This $X and credits ounce our per per ounce. us cost $X in going is all-in to is cost byproduct cost estimate company-wide a Our

a than on production is quarter a the as now more when expected, solid guidance, maybe going strike so if there and the is being take We a upside that's prices that's cost We zinc because implement. quarter delivering Friday Casa guidance, period upside fourth going are costs. to silver bit Based in ramp to is there the know to strong, and gold lead able stay range. production total we in Lucky see will give the fall resolved, to that and be of see up we this is

strike, look talk So the X. at about and Slide let let's me

While proposal doesn't progress, dramatically where but had system there's for been we've the We the the who the are just work more changed this position skill The as decides of people mine embrace to of future accordingly that fundamental to even has a the will continues change mine place depths more at that can does that diverse need to workforce deal last and conditions will X challenging. and with in and change, we greater be sets more in decades in need issue compensated that. where the when? years conditions changed be union is our strike the

have as liked it. to strike know this much have we we would in As that front have year can of the mine resolved, XX-plus future a

to our and So mine mine in the on of the as we're or have energy generate better mines the management getting right, returns positioned done. similar even other time willing spend to putting the

But they is We to our knowing current need the expect there have we they our to but is well other know no hope want year, if be mine union too. going to where it's run. said, we to the is because past and the We we do months. continue belief the sheet they when that strong, Well, few them compensated. with how compensation, we strike next in in not but changes keep So employees change. and be for can work, very because be has be will mines negotiated just believe working things well, X return working the employees continues, environment change performing our firm price want to to resolved? would that But the rather over are, strike balance the

will been don't capital to We and maintenance what time, and maintenance costs. at salaried right offset change doing some Basically, of point care occurred anyway. the change partially ore continue from paths expect the we change. programs advancing would have strike time to the course And that will produce of during personnel to from and we conditions lot we a as reserve our we expect have this

now the quarter third financial over I'll call for turn to the Lindsay review. So,

Phil are the will everyone. and from X, stronger some quarter-to-quarter Creek the you on last is quarter Creek so year's Lucky's our inventory million, adjusted balance revenues concentrate of revenues good see Friday against as and consists Realized, income at we and our production the timing by of income an when losses $X.XX fundamental timing per offset of exchange quarter income to from on the at are the On Year-to-date concentrate Greens this to those and Slide cause flows. visibility sales by statement result Revenues production to on which mine, gains in morning of of reported from changes prices and in hedging $XX between adding forward, a comfortable Thanks, are being strike mark-to-market The strong about million basically can and of well financials. due the of zinc variances of the view but of sheet.. looking Berardi. derivative We forward. normal to comparison approximately losses. Greens zinc plan, comparing recorded as we $XX benefit sales on locking metal, our primarily down Casa reported and mark-to-market back net hedge, the because share, foreign We spot prices $X.XX hedge measured positions of $X.XX. in we lead some strong our have increase not cash

point Also on prices this simply shaft we've changing $XXX on amount income will are project, future, the Lucky are that of last higher to interest completed the higher such last We would is year. only Friday's fact out The quarter. positions year, the realizing outstanding the debt we million continue statement in #X about was not timing of remains I that seen which due put as of expense to than capitalizing to the just we bonds. construction interest in the

before related The case. quarter changes third payments in short-term cash last shipments year. compared income the operating After to of are receipts, the quarter movements larger in third always and and tax $XX $XX XXXX the to will flow provided swings operating million working capital cash concentrate which million due capital, be working to flows

operating positive our was of the account quarter for which free another resulted in that expenditures after $X million into cash strong taking XX% capital quarter, less flows cash quarter. for again, the flow So, of

balance amounted million, million the quarter at $XX third Our cash of of investment short-term of period the a the XXXX. growth from and end to $XXX

investment sheet So as at to our debt-to-EBITDA the our grade remains levels. continues ratio stronger get net balance

after costs Turning to to silver declined declined cash after credits in silver, negative last and per silver than byproduct company-wide cash negative revenues while It we is to producing also byproduct cash costs of after credits year negative, costs costs, $X.XX ounce. from our which see and all-in per all-in $X.XX, ounce sustaining the a byproduct are XXX% cash cost results cost from greater because concentrates the zinc sustaining credits. lead of

in as costs same noted Greens and all-in as after Lucky in the of estimates we Creek have the annual of cash and such And byproduct time. we sustaining revenues zinc being per credits lined lies mining while lead for for also reduced mines silver our at are the ounce. metals, cash the polymetallic costs and earlier, Phil enjoyed business Here we strength when Friday, precious

on at XX% of of the Turning margin is quarter. gold to cash or deliver at third in X to industry quarter continued and much Slide one silver as was operations Slide XXX% $XX.XX sales improved silver sales the The this of the $XXX. well margin cash briefly cost shown or X, as highest

diversified Obviously Friday combined Lucky the would lead can our is you be of stream higher at revenue and was also silver overall at revenue. to see be source silver XX%. XX%, X, Greens continues Slide zinc dominant to at contribution operating, would to a with Creek revenue its XX%, Turning gold and revenue be higher. as

cash sustaining summary, optimistic balance the talk continue silver the byproduct Friday, pass Larry and credits, the sheet, and costs all- about have beyond. a the despite we to to strong of excellent the cash now rest in Lucky operations. about strike costs, and at for are the I call on potential would year So in after to

tons XXXX. of which you Thanks, million quarter, an of per Creek ounce producing silver Slide quarter, in negative ounces Lindsay. X,XXX is the mill began cost per a Greens On credits. The with quarter operated byproduct X% a XX, X.X after see excellent another and since higher the cash day had at average than mine the record silver, third operating, can third

haulage rounds. higher, market were adding concentrates. which lower, a have East In in frequency initiative, lead energy ore driving is objective our year. on underground next LHD fans, reduce ore higher level. plan learn offset on to haulage. best The Berardi costs. great third Slide tele-remote increase second to silver drives goal is of already continue for was has to to added With cycle our tight as shown year. the resource. addition the be has phased on LHD demand which This With the quarter, somewhat year, is Zone, to The mounted the Slide and of on operate expanded variable base jumbo Definition remains XX, drilling automated with a feed get employ the of for dilution zinc to cost ventilation nearly weaker drilling goal continues grades, this XX, Creek initiative will are benefit place to drills how add with and next potential tele-remote being shorter throughput to Berardi this metal length we our in and Casa grades guidance by which is as Ore On to mineralization we initiative, we at reduce the We Casa grade had as Greens much drilling done.

its is Quebec, of produced in per seen record of During largest it's Casa was an XXX% higher part made to throughput has an increased second all-in as Casa plant a by track acquisition, Cash mine to mine, XX. generate it in part our the margin. are open the ounces higher close fourth introducing gold, this is Throughput on result since day, the than grades quarterly important Berardi more XX,XXX estimates, industry, to the is set since a of quarter, the per both material. the throughput so of been gold Casa portfolio. increased story and has cost important tons our ounce mining reach throughput. big The record pit sustaining third quarter. the quarter, acquired of approaching forecasted and Slide a and we The as substantial on and X,XXX record possible Berardi

XXX ran September set hour a which metric wet record monthly grinding the trial, a tons per of at and in wet for tons Additionally, tons pre-crush was results is X,XXX per typical adding versus method additional We a horsepower, hour. day. the XXX per

to the the analyzing optimize on all-in are to We effect in cost. the order data sustaining understand recovery

XX, In end This construction, the and is associated personnel trucks reduction result addition, of maintenance the track a is of automation by ultimately XXX drift, drift which on commissioning under the year. as costs. shown and of should on Slide in for

on as Vein the of the arriving the mines much In be Midland The ounce. see as first as Veins. began in twice with trucks continues from as per is and and Since Mexico. autonomous decline can was you in million Sandvik it grade mine, third San X XXXX. cash it moved expected. mining XX-ton greatest second almost generated will to impress, these the the year first produced flow Slide Sebastian its remains XX. in one North of ounces It cash Francine highest negative cost In away the then, quarter, we in operations,

first the San production begin is Sebastian both negative connect, the byproduct as to credits. before with about on underground ore XX. cash costs left XXXX, ramps track part by Greens have team feet So on shown X,XXX Creek The slide after X and of

feed. of with potentially Zone, continuing resources, which of are ore, our the into we to X has but mine to with addition years sulfide are We plans the XXXX mill discovery X which refine non-Hugh this in to cyanide-amenable

we material. reevaluating with now do sulfide might the are what We

XX. to Slide Moving

we're and productive cutting lucky with Atlas we will Lucky with Copco of deployment Dean. and the to Lucky believe there, the to this that and idle to mine and We're Phil in continues invest of call the technology as Friday, the projects. I continue are vein miner. limited a has operation. make supervisors but the that strike As noted, potential safer at partnering with pass over Friday, conducting ongoing are We not the few announce remote more capital now manufacture a Friday technology engineering production the to and happy at we maintenance in

bottom Hecla ellipsis underground where circuit. aggressive the and resources surface A along the identify new high-grade but resources. current give multiple are following quarterly black, Veins, find in to Berardi polymetallic expanding, Creek. our provided Larry. results. Slide continues expansion resources could issued and you advance Recent Greens and justify Middle mineralization of Zone of has the gone the Francine strike proximity. in as on area a section mineralization in can longitudinal very resources the release, design of new continued defining Hugh new where at shows extend mining faster we and underground that the reserves modeling of identified the drilling the successes last to high drilling the feet grade is results to the are wide Hugh and end list high-grade the the San Zone XX, exploration with Thanks, of drill Hugh pattern programs, center about resource. and ramp at recently reserve, the reserves east. Professor the There the of Francine development to to near intersections has Middle Recent discoveries. Zone the XXX the see and could These XX close shallow, at a drilling Vein polymetallic center. circuit, to West Casa gains The diagram bearing call, the of of the east sulphide The may and link to drill last defined that is Of the west the the cyanide expected, this to expand end in you is pits depth. new resource are intersections that described resource the projection surface vein current current a the appendix sulfide in and opportunities flotation come along than green the that in reserves continue of under future Thursday. drilling by insights was resource Sebastian, hatch than open are mineralized shallower San and returned Hugh east extend also of of Francine Vein. the and and new Zone a mine as separate Drilling we style in high-grade Central more of extensions diagram of resource, the right Slide from from. generate North drilling to note, into the Final milling identified at Sebastian as optimistic pods the outlines. diagram new oxide are yellow the On has Middle, which resource Vein

of that places recent the at intersection This to fringe being mineralization West Additionally, In represent Middle currently significantly of mineralization. defining covers underground drilling in in and the them away style as bearing Vein metal to Zone current combination the the the resource critical the mass in mining a development. a the Middle the from is Hugh with X,XXX Slide strike easily of economic. shown left drilling XX, expect that Hugh mineralization, which ores Hugh may make Slide base accessible the on west similar upper open mineralization return all, the to the east In could provide XX, the Mineralization ultimately resource we months. is Zone X,XXX maybe of extension feet feet length growing diagram expand east. an to defined on polymetallic Vein, about coming the style Zone resource, in of

along identified During pit resources and high extended drills excited mine outlines arrows Underground on as continuity Berardi. the map the surface red zones open about and XX extend to planned to the in Berardi to northwest, the by in Crown longitudinal east ellipsis extension Mine will below yellow, of the for zone these multiple the potential near-surface , the earlier is potential high-grade proposed in the surface on at the of shown show series Up XXX the of expanded The huge X drills confirmed lenses Fault, XXX Slide XXX why zones throughout of the XX. X resources lenses green quarter, new the reserves shown Casa the of near-surface had and Higher drilling, grade viabilities boundaries expanded that and Pillar zone a mine drilling. resource and west Casa The shows plan in defined the Casa for open southwest areas workings. pits which and Slide expanded that mineralized so the we and also to Berardi XXX East within drilling of life XXX, the up project and to A along area. of determine the longitudinal in west expansion. operating XXX the developing current and mining. the many were mineralization down-plunge the we're

plan. will become earlier the adding higher zones by Phil call in in Columbia. that, and And the to the to in and in grade In comments. I'll we're opening on XX, as and and resources definition Fault mine. closing At to success that time mining. life depth, exploration part programs Larry discoveries. as continues Lower to XXX shown that mineralization from the Deep have higher of and East potential Berardi from back is Gallagher underground of Quebec priority it Upper corridor mine, Southwest appears described areas Idaho, surface Plate the company, in addition, to the we advance made is the to British some we these drilling continue to in zones, extend the Greens several interesting to additional drilling the pass Casa at Bench have for have Ore a exploration with the promising has for also Elsewhere mine and What export Slide made Creek, Northern which

Thanks, Okay. Dean.

So our it's exposure base exploration higher the quarter prices those advancements we've a throughput been for our higher metals, to productivity improvements. good of and in the and seen results, benefits operationally, we've seen metals excellent

and to questions now. So quarter it's happy we're been take a good

can So, operator, first on. let question if you the come

[Operator Instructions].

J.P. of Your line Bridges with John first question comes Morgan. from the

to I offline structure? strong these one wondered are you have have improvements, extent extent made while the cost long-term what just high numbers that what Phil, grading reported improved and to mine your so you've you which

comments terms probably Dean past, what in look Well, years the for changed let mining, plan at those were for plan then that X of the a not well. mine in me of we make look, it's I a least the as and that few grades has we're expecting. I'll X and plan mine years at dramatically XXXX, let Larry life of been But jump maybe in, life when

sure I couple that's think we've XXXX grade back lower what and years if in said, had. go compared a you XXXX ago, we have a to we would

high not just it, we're we're plan. anything, if the So grading following

I reductions, reductions In difficult a improvements. achieve, focus our on really cost cost terms so of are what and productivity think has been thing to

looking that's process for to recoveries, try those where lower attempting think can, bang for Larry? impactful. to looking cost. better Clearly, buck be throughput. difficult lower we're a So is on really there we're things have but We than that focusing more to the for higher you cost you

brought is our and and was on purposeful just did the drilling our plan, of Casa, plan. that plan fundamentally, a grade. definition very executing on we're San isn't this working bit higher benefit we result But plan, plan, the in a get of Sebastian Creek plan, Yes, is changing Casa Greens on some is result of at our little it's

to add? Dean, anything you want

Well, comment, a just John.

Creek, of the we surface don't underground with are I grade really in Francine Sebastian. the good grade. found have Our what Zone incredible this think And cyanide results At emerging Casa we really for Casa, we've as that pit, the at so then to years. these with is Sebastian, San that Hugh circuit is polymetallic Francine and had zone consistent, that Middle X but at it's I vein potential Greens drill of San both the creates presentation in alluded the still very upside and last

veins given narrow, polymetallics, I was generate on the interested following are you've demonstrated relatively could the those the deposit? I you the you sort thought tonnage was along strike just wondering in up extend of that from what so

small, a tonnage Well, per... previous mean recollection about was I study, XXXX still my did when we tons that relatively was the was

has that's I really [indiscernible] X,XX,XXX Yes, mean [indiscernible]. mill goal so is about to created our

But the when that a XXXX, were ever Zone. on contemplating we we was those John, previous day just did to and some back studies, tons Hugh the most go studies X,XXX

about Greens Casa other you comment every the you at on one think lower if Just the ago. year grade, a think I it, did then if place Sebastian, grade, we're look mining at statements, we San Creek,

although that on require the extent means upside a And that grade would the so the so presumably new decisions XXXX tons day was on to the based original Hugh mill? deposits, Zone to

days we it to have early new can is hoping seeing the exploration back the but in needed that it would large made of particularly signs that the what we would first we it but Look Well, as of We're decision not we're had to we and do. we're this evaluation in starting wasn't what were occur explore take it's XXXX, We depth, that west. whole the we success. only it, Hugh we're have at enough a seeing now and to Zone success. exploration the forward

I in because So but watch, change, next course it just to soon, the X, stay is X too extrapolate quarters. will expect too don't this the of something to tuned, much try

from Your comes line next Sorrentino question the of Metals. with Anthony Sorrentino

is open. now Your line

what access discoveries a recent decision make of use? to below are mine's the some the At Casa infrastructure. will goal would Berardi, ore method you you When this and

to shaft, we'll plans decide to it's got mean, are this doing a for that's to infrastructure the that place, point. buying doing down X.XX have build There the But drilling economic, and end discovering to access levels? what look -- just is to mineralization development and to it. how the the that its certainly we'll drilling then at infill no you've decide the Well, development in and you up plans extend I we're of new we're how this relative

It's level that and extent and XX.XX, in rather to meant we XXX what I'm sufficient to then have mineralization. presumably that say, Larry? is the low the there would that's ramp XX.XX below that we

don't Yes. year in to been find, we're covered and new mine. Casa there lowest that, high what then establish mine, is drilling have discovered resource certainly resource a a the the quite being of as A been we level down open feed lot substantial is well that of of of a some that lot some Internal in but underground last of we'll ramp pit on below below now We what's in some the high the the bit. from level. nice that's XXX, the really should

at similar discovered? still Sebastian, question to sufficient be recently reach targets would the the deeper ramp And San

material tells and function the of really we existing is of is. ramp-off end shallow that Zone Well, where the bulk Larry, Hugh its a Hugh Zone. there as we'll day, what approach taking what the at else? what we drilling or shaft, us, we're of discovered be and we're to to way sample Zone, that's the the certainly contemplating, do we doing now is -- contemplating have. the contemplated going originally still than we anything whether the evaluate that's ore sort right from have And whether going because a the in to infrastructure recently we Hugh were the are When where it between

gets known kind is vertically Hugh two here. putting Zone. which halfway to mentioned, for us Hugh development we're stories in One Phil the XX Zone, of is the There that years, and has the been about now Sure.

the attractive. now. new development. of development actually makes drilling And relatively finds can more new that So it close coming so to we're much putting these, Zone of then haven't concept early that designs have quite that off Hugh one mentioned, the some we certainly them to still Dean of are but were a get that the any It's in put

Instructions]. [Operator

Adams Nova question with comes the next of Bryce from Your Bank line of Scotia.

a on San questions for Sebastian, probably Larry. Just couple

the open to in mining do expect XXXX? how Firstly, you pit long continue

into underground. production next quarter, bit maybe the of first quarter beginning but the the end Well, year, from the year, we of of underground the in first continue the come open mine the will end pit all come from of little will the by will through year, a will the

What will production impact on underground--? the be the changed silver with there

few But will for high year, ounces. some XXXX. probably but million things, where as of higher be they guidance, million it given not haven't as a certainly ounces, We a yet are this couple than certainly

will stay is crazy in cut that? throughput be anything like So to going half or but same not the production

Yes.

question next the from Brett [indiscernible]. Levy of Your with comes line

now open. is line Your

look or lines look can at add at know Just stock that kind in look exploration additional buybacks order, those at you you and rank anything look priorities, put terms sort of are, where along acquisitions, guys delivering, refinancing, them you of list? then at I of in for

conservative we'll want guess of is, thing I we vagaries the commodities to the of first balance say have Look, because a sheet prices. the

have did lead X cash the we we exposure and things, we hedge we So have. that zinc and

lots sort number sheet, of on are amount triple-digit going one. of have the cash we're in cases double can that we balance and of to improvements return. keep a productivity that evaluating So generate two, some Number we fair

put to our going money there. we're So

Thirdly, we're changer. the really technologies evaluating sort game new to that potential be have of

we'll have Fourthly, that put we at properties. talked properties money look plus exploration we we've So about, other both the the at there.

So particularly attention things. San more that we're that other and then do there, you'll the Montanore, as year, early throughput Casa at see maybe that we trying as continuing permitting have we're doing there, and don't and process that drive assets properties and the be we a capital focusing we and create like underground places how value put exploration attention maybe like improvements, figure be we out could to Sebastian. got other see coming just on Rock Creek next development Heva-Hosco, us then would we've And and get money much then things the And from conclusion, to investments. to those large those

really look that a And been are that's the that's anything, and Casa, have look that applying most of looking at Greens of in acquired other the XXXX, now tons and that then expertise we've Creek we're we've the developed had But if consider producing we other you now opportunities. operating in comes assets, a that our mine. series if So performance mine we own at first we whole since pits. evaluate, at history you years, XX , it that course, of things before we the it we open

improve we think those we of So assets operating can and performance other the acquire assets.

So that stock would and with and probably we be line what comes things. dividends, all of and in next do. then refinancings And buybacks those comes

of this. about how and the think sort we order, that's So

the John from next Research. of line with Tumazos question John Tumazos, comes Your Independent

ounces Casa When wind second-- or Pillar up? at East will First and stop the Crown Berardi

you Crown go that from Let total life me about Mine Dan. East It's on. a these mine one X-year at answer beginning, before pillar,

Berardi when you or the--? say of from So Casa even million if develop you more some X/X ounces

of a we quarter, and the ounces? X,XXX produced open it's from ounces to from pit the we'll pit X,XXX, No, combination coming how open ounces, in underground. from underground. have From the the So what additive the many

of it think X,XXX XXX,XXX was you when out being how of unless ounces it mine, for So ounce we about in producer, this terms XXX,XXX think the figure to quarter.

the XXX,XXX over in is XXX we really better of of what required volumes than that mineralization being of this have is grade underground So sort to XXX, the discovery zone. ounces going larger idea

answer want you to me that? Sorry,

Sure.

pit the Principal the it XXXX, pillars would is mine these that's open been So crown and it's at then follow. runs pit production. would concept through uninterrupted Pit an -- There always be Casa

pit, before pit, potential online finds those potential XXX Principal. will XXX pits new come with likely Now the some the the one than in more of

options. So we've got a lot of

the this long, life. mine what is -- long means that all got a life long very potential for Casa at But John, you've Berardi, really mine

got would and big I two quarter. partner, the what be be writing permitting Montana checks? the Western too and of everything requirement in not the you good you'd with If did primary enthused went what capital me, projects where take a Excuse would years smoothly, the be

But X to contemplate could of Well, come exploration years X have the the still is next evaluation all get the there completed, and in of to that together this sort then phase. permits we and construction.

writing So to is We Order huge develop develop to trying out talking the projects you're sequentially that X, checks the be range about, X, written over things so you'd and would that be the a from would where you're X years check likely talking never now. about the years, X probably of of for X million in done both capital for both magnitude, amount X simultaneously. X, projects. $XXX projects of course these

we sort So outlays manageable the annual be of think levels. would

said have participate project. to. don't contemplate feel development having like would Now, bringing the certainly we in a of the in we We partner that, to

to drilling confirmatory cost million exploration or year? million closer million $XX a the tunneling development, closer a and $XX million and something or or Would to $XX year $XX

one for than course over Look, less timeframe. of sort of a X-year $XX of the the probably million each these you're X over years, looking

$XX a piece? million So year a

plans Look shaking an yes. be. assumption It haven't unreasonable their don't put colleagues could and I think the we but that's head together, are my

inherited the Yes, recreating which we reports official that technical the in companies, it's from were work, predecessor work now. only

we across those amazing things ago, drove I years it's XX over wait. how long

It at into was and with Circuit. ability is, became their but I XX familiar and come that Xth I those skeptical it's reaching production the a to ago until things are conclusion years

in the Xth of the Some in rulings projects. Circuit favor of made the

in these So confidence going for have good having forward. projects we legal basis

line with question Your of CIBC. Chiu Cosmos from the next comes

at few any forefront questions off, the from Just first here, maybe mining of is clearly Hecla technology. a underground

autogenous underground, might any Going savings cost expecting tangible what cost LHDs safety, or to addition will realize to that any you in have realized your be tangible be? savings to you and

early add utilization in fact and long-haul focus they're been change develop trying and in to still utilize start, from we're of these a ways at shift them set it's because that's at to technology. benefits trying the autonomous I other to we're you use on working use like mine. companies Well, think this trying up to with to Sandvik with the to team autonomous of to look, have it is an not few put to to and the the just but us we're to things, of of at the in again, the one time same on the that will, going I stops and operating to these and not mean, machines would that mine's best these time. during take a the try doing people units have the has stages vehicles altogether, same how the that? what position and realize Larry, And looking has to we're them we level in

have the itself. really basically cycle a set material Yes, to the again trial hold do get button digs it'll is been and you application press to to machine you've I to established surface. dump itself and because has done mean Once trial, really is point, all an it interesting from throughout,

is And right? this Casa, at

Creek. Greens at is This

to really constant because the the have the And in in so of shift our in means bolsters being bottleneck. get once in bolt-in phases Obviously a ready you underground, when the able challenging, our next in comes are have we first the But area. addition have communication, to next fiber do is just to is area, the will the this and generally expect is and so shift, is, to of and which we what application, bottleneck for making what to hitting and running which that step machine fill step. kind that the you cut to that stop fiber have will is able work we cross have is our

at a to Creek it is learned apply Greens Casa things be bringing it automated idea from at big debottlenecking that the just the we've to been like then this Creek, So jumbo. has Creek same taking the and Greens in way applying and exercise at we're once Greens Casa would

with the done some automation the there drift still being you're at XXX I mentioned, autogenous going Casa as believe Larry is LHDs? right. well, But

the just trucks autonomous. are No, that it's

at Oh, the Casa? trucks, okay,

Yes, or that they and slide will that will the they're running image the one, on on be. saw We've there. running level you so XXX first be got

could and ongoing was asset, applying different be from terms at one in Greens here, guess, strike? question what learned assets sort you've but is future sensitive the that a with the here, this of Creek, to in automation I it looking And then what terms of issue at like plan an of the Greens taking Creek

very to automation not at the use between stages early stuff. just plug any relationship and strike. Creek, there's whole Yes, With is industry, are the to at Greens think the this we and play. don't It I how for of automation in the respect

the out, stuff impression a figured Larry, million site starts you're Casa that are the at everything they've we've in anything you from the testing and they're to how You got But step both and that very, is sides, if in any and of get And have doing this talented add? people one you a its autonomous at for team mine every advancing. both the to reevaluate there fits Creek to very it's in story. and Greens automate. and got more industry

staff much Just initiatives, very in as and much talented don't million very very done bottom-up a have mentioned, these practical. driven by We that's very are Phil being staff. $XX fluctuations

all luck, been for it one good and resultant figure cost I'm you We have sure but day. Phil, out, savings the waiting to

really I'm know Well, value. it's more tons per going if get making, that that you distinction I tons productivity than gives mill people on the bigger and think that's right. we're through And man focused again, that tons shift, don't hour, costs I on per more but more the more

and that's And where first focus primarily. is our so

question of comes Mihaljevic RBC Markets. Mark the next Your Capital with from line

quick been from Lot a things have of me. addressed already. ones Just couple

now, constrained, so because wanted able it just that's obviously stands limitation? clarify been constrained capacity any permit there you Just now previously mill-list any it to Casa within mill permit or if or you is had there the is is as more additional capacity or mill were

crushing The so tested mill crusher we've we've done were put and in and that constrained that. in-pit what is, we in

we're see We that's higher with that the yet conclusion the with we've we the throughput do did haven't on had come impact is got that what to crusher that constraint But the as recovery. really and been to a what also to going there. we've

in a work it's So progress. still

remarkable. been that pretty assured, though, rest look at Just it's the had if you performance to-date, we've

than Greens were When XXXX. tons at back looking able at it had and we a was mill site, more at tons I never to Creek, to up. on If quarter. started back the to day, a had actually quarter continue we been came numbers, drive X,XX,XXX in you we're the XXX,XXX X,XXX That tons X,XX,XXX the a that we've go for so

things, at Casa once in do could it we'll that further. even So well the as and we'll we see obvious how we push go do

of I consideration. here, guess switching obviously mention gears a being is M&A kind you did again,

I one wondering seems kind just think are how be of whether that end highlight environment And if the there you'd to shaping you opportunities. spectrum could of some now looking the was up So and you be at?

you what mean? the you When of end say spectrum,

small a of--? terms that -- development in stage something in be would type for production, for of tuck-in, just larger, something be Well, looking would you something looking in

what a always is we're predict look, difficult Well, the -- and decades. it can portfolio we the going to we're and add operate don't we great in we're and thing do. we price provide try buy we're to environment, for, to hopefully market, going always is environment to can price think evaluating or that's And value what to this very we a to a bad mine a

these don't focus really We need continuous. to Having value we said can evaluating opportunities. add see is stop is to other that, our where So assets. what we

Creek to large we've And about to of them what We we we bought did for a acquisitions, when think the do we able assets, been we're our worth of pennies. think assets we've think still we've large do and with small, whether #X, -- mindful were exploration-wise and you think value, look Rock and operationally do something assets look do relative So and like about Montanore, guess value I that add can though other for high-quality assets and acquire. at billions so those think we we we when dollars that prove you and or got we'll if that a we frankly we might that.

it And look maybe is and those what down it the doesn't understand market we the so deserves. for beaten where really than asset has more

there great in decade. things. we a has late in recognize and the were those Canada, so Venezuela we U.S. mindful try and or Creek risk. countries But Montanore We those for U.S.; more gold and do to Canada of also assets it's Everything we've we'll in the Rock of some of are political outside do Casa, is done producer that the been largest

a how there do have right were because we our questions. we jurisdictions other on U.S. things we and difficult time places you, I it's more to but the in and in operate in opportunity. focus Thank of just half, to Well, Canada, if So think operationally do all real the that's have able for is know to but politically more Mark. the

of Mike that free continued any forward we we proud proud more, strong call to the I. have we're the had, and year fourth quarter. We're do you If we've quite quarter that of feel look or had quite to please

us. So thanks very joining for much

This concludes today's call. conference

now disconnect. may You