Hecla Mining (HL)

Michael Westerlund Vice President, IR
Phil Baker President and CEO
Lindsay Hall Senior Vice President and CFO
Larry Radford Senior Vice President, Operations
Dean McDonald Senior Vice President, Exploration
Heiko Ihle H.C. Wainwright
Laura Engel Stonegate Capital
Anthony Sorrentino Sorrentino Metals
Lucas Pipes B. Riley FBR
John Tumazos John Tumazos Very Independent Research
Call transcript
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Good day, ladies and gentlemen, and welcome to the First Quarter 2018 Hecla Mining Company Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your host Vice President of Investor Relations, Mr. Mike Westerlund. Sir, you may begin.

Michael Westerlund

Thank you, Operator. you and us operations thank quarter Hecla’s and financial XXXX results everyone for for joining first Welcome conference call.

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

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

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

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

Phil Baker

is improving start XX% cost few to Strategy hello a it we’re strategy of was are of we a good cash At first culture same because it fact the environment and an long-lived driven Slide on was yet I’ll then base where near tons the low about years and but more in was mines unit negative acquired open Berardi Casa in pits fixed Hecla mine you At XXXX. the talk treatment throughput there Mike, in and to this when moment. of costs past metals in fashion throughput function seen the thing, record about culture. what and processed in ability production. everyone. doing oversized I think and since have costs we part they similar quarter Creek a down a do our quarter for costs. greater consistent good X. I’ll And Greens are the of starting performance most the This underground price focusing for which in increase and this charge even with mill Thanks, get the

with things better long-lived assets if convinced figure to to consistent We there going do out sample. clear packages operations. at have I’m they’re me how people for long make is our large our that and returns. as low start San out bulk have culture generate the development Sebastian enough better. our a cost consistent company’s the margin sulfide strategy we geologically how have figure and perspective to to more a of more with the to even future then It’s desire same talented All that do the is ideas land And

teams the Hecla past four opportunities has been to the talking opportunity the years that advantage problems about innovate identify. our take and the for minds solve of So to

these where just our property Greens that have still about we’re some long-lived from finding Creek But talk of On the it’s low-cost a making and operations not having properties. doing we shows still like doing. which still issued Lindsay our update we things exploration that we’re to for We’re improvements even years explored that more. to going Tuesday benefit operations XX

half like and to which going near plate away. but large, say on it’s some be is Lac in these San still that the surface These year and in provides miles has to expect year and Sebastian about mentioned exploration appears we discovery to about not more mine in our so the current of be to it good second to some operations. Germain growing we deeper last Specifically now very mine of wealth have the and talking the X.X at upper a discoveries. the balance Casa not it high some

in Creek and understanding discoveries. what June learn similar saw that’s And operational there end saw and lot saw are likelihood saw similar see the close at big grade at a importance When to possibilities saw and at where improvement as Klondex. as have we to it Green the we a a lot to expect what for see the higher of we track. Klondex Klondex the Casa. crack of converting of led to properties that we identified Nevada of the we numerous ground of we as things already hit Creek. Green this deal looked at that So, this to to We core exploration further resources the on Creek we us case is large sell seems Fire the is geologically we grades and the we and team We properties the But everything develop three what around in at we making extraordinary those still right it.

and our for quarter and into incorporating first in second the do half in cost the ounce taking the the will the result lower year. a per the metals the assets of prices that we that of we’ve base for company seen these guidance account as we’ll higher Hecla, So throughput revise

now to call of over So I’ll the performance. for our review pass Lindsay financial

Lindsay Hall

Phil. Thanks

quarter first the pleased really results. financial with are We

same gross our profit consistent and million to over $X.X of XXXX. which while in the all XXXX, net sales was million due $XX.X period We XX% cost income for $X.X of quarter reported in $XXX.X mines. of some increased Our revenue results was million from sales lower for all with good less so of of very product line than million, revenue the

quarter-over-quarter. and the Cash, so sustaining all difference ounce XXXX after amount in different regime and non-cash majority XX recall from cash tax under same equivalents to due XXXX. quarter industry $XX byproduct reported the and $X.XX favorable for cost The million recovery byproduct which accounts Quebec in from United we pricing variance in for and about period credits cash we’re net Ressources You’ll lead tax proceeds quarter per of States of quarter in loan zinc the of of improved the $XXX investments XXX byproduct negative the included cost totaled $X.XX booked most to in a the income improved to leading also ended the the XX silver credits income higher this short-term an million our in million. of Companywide March the that resulting after margins. for some

So the pending portion revolver with cash the in transaction. finance shape good to we’re the Klondex of the undrawn cash and

normal first the from X, operations quarter $XX.X to The that flow was impacted of provided payment resulting made first negatively April hedging These timing the from Slide this payments the losses the XX% compensation. in late right of mining to Last XX Unrealized do about from flow in mines cash year flow of than it flows inventory actual Creek year well items. lower million, be. Turning and the items our one-time foreign shipping. nothing include led coming exchange cash incentive higher our we to operating the cash several of we we at Green’s to March cash thought XXXX was base due made have variance. of operating with the where awaiting in should the million nonoperational and product items hedging themselves. cash programs The difference taxes quarter basically $X.X due higher deferred capital working metals offset

$X.X than strike $X.X this greater full million we year given our these addition this fund the we work increasing difference by plus account for provided cash $X.X the million it our reserves year’s cost resources, Lucky connection at last or to on Adding higher they cash quarter we higher pending Friday exploration compared operating this activities of was suspension incurred In last have a together of for cost to with million the Also of year. quarter our items put acquisition. in costs and in quarter’s.

operations at gold of diversified sales cash to continued margins be was silver margin deliver supplier $XX.XX $XXX combined at Slide you can Turning silver per continues we as X, X, Creek expect. quarter. lead the Slide sales or stream ounce and Green and per in gold revenue was XXX% first highest zinc gold about the at On XX% through the industry silver revenue of of the you silver cash The or XX%, to with and XX%, maintain ounce. would XX%. dominance of to a see one

in in So performing and much and margins liquidity well, byproduct cash costs costs operations strong. all the are lower sustaining and are summary, credits are after

to We’re as pass XXXX call our optimistic about will Klondex Larry the we and to the acquisition the now turn I on beyond operations. the talk integration for potential the mines. and Nevada attention to about of

Larry Radford

offsetting of had was higher The On can XXXX same lower as Creek about Slide production you quarter. XX, the Lindsay. excellent XX% quarter silver first grade. Green Thanks throughput see another the with

throughput throughput it. is the mine increased operation further XX% year. are during increasing consistent or assessment. after making per and installed time continues is see ounce recoveries byproduct Slide the job we’re anticipation credits. continue on as Slide material, But since availability. can to Our open being can Casa the confirmed As XX we of development after an at a with equipment strong not continue a and the production over in excellent Why production the On million year. cost and of variable XXX% big cash improved prices operation you pit an XX gold increased in we mill was increasing fall. the have marking all now see first on savings annual sustaining the of acquired The into $XX,XXX increase during $X And don’t would throughput possible by in prior and the byproduct performances? to per that XXXX. Casa XX installations about that drives credits fan study - Once tele-remote cost demand what The we frequency we phases, expect the byproduct number process on fans. the past of of of or allowing confirming of improve the is did to idle ventilation the LHD in XX been shift cut-and-fill you stopes, in and we’re on now mine estimate and progressing, savings after well. the there made XX We introducing And mindful change. look The story Slide down over the stopping it in Berardi acquired in team coming

that slashing do success a more we is than two automated Casa automated on really kilometers is so work of of as the faster. having the in had running we’re we’ve couple great operate to can now there with truck proud even truck Slide a although of Something on at that fully drift of XX. the more In truck principal The total shown little travel. the areas the ribs is

expect working $X costs. in arrive enable savings million summer In operating annual operating, second of the to per late we well truck year, should fact and it’s which so personnel maintenance automated

ore started XX Slide issues is in ramp performance, on Sebastian a the from first year to a ramp-up production San oxide healthy stockpile quarter progressing be could that contractor well. related mine the our model. the projected to have up We and anticipated power operations. of underground with insufficient block on in multi-tenant we variance slower and then did Moving ore We there in

a in quarter and insufficient open plan. power we underground Additionally, the early we manpower we than supply Vein contractor production pit restarted few months pit we’ve have shortfall. addressed equipment North With earlier our in the the first fixed

ramped generally output. maintain higher up projected. slower, tonnage our guidance the model grade We are content showing for but at than reserve we summary, slightly tons our design a higher we approaching with XXXX In is San metal Sebastian. ore underground lower Our

strike Moving of Lucky to on since due XX Steel production XXXX. Friday Slide at March XX, Friday to Lucky United was down

preparation do work vein limited to necessary mine. do in of continue remote arrival we maintenance the We development necessary production while the for and

with comprehensive of by Hatter plan of mines depletes improve Creek existing the cost reserve mill of recoveries with as ton. exploration. the which measures was fire the you pass Graben I the I great three add life-of-mine cutoff quality at transaction conduct value see per the years can that or the I ounces would putting the project. strengths perspective. the installation, Dean call Creek Fire very unite can Having start operation and the good of to like Nevada Before X.XXX operating To Hollister one talk The with productivity CIO Klondex worked at ramped might tonnage about miners share of impressed ton believe to they they’re place focused and XX Goldstrike for from up and on Fire us to together management I in my assure to was and concert team $XXX safety. implies the reserve. with completion - have Creek grade are and to the that that some I is per mines opportunities I of an We the teams very the of the opportunities about be

to the is tribe has cutoff with important relationship maintain which is also and It Klondex good cost rate. there a that So a reduce the likely job we opportunity with. good done improve Shoshone

filling push the will this I new facility commissioning call old as will the new facility pass of between little Dean. to of the the of the facility. We now construction there the season over tailings of is overlap and a

Dean McDonald

Thanks Larry.

on the aggressive XXX Green first continued issued our high-grade drill gold release levels history of Creek. Tuesday. confirming give with in the A and will year in lead into and intersections is Sebastian, the quarter Casa Hecla which Following and of San we’re provided in insight Berardi drill was of resources the appendix at programs the highest This reserves list expanding. silver, exploration on

and start Sebastian clearly good high-grade resources. extend multiple to a we’ve circuit. getting milling At cyanide sulfide as both and defined structural trends We’re leased recently in to reserves XX, replacing separate find San providing circuit in shown mineralized resources opportunities Slide a flotation new

reserve, current defining new Vein ramp the new and in underground of black, see North under green development in Middle where and the can the is Middle, yellow ellipsis outlines, Francine Vein You projection surface drilling pits the the and reserves new resources.

potential shallower San below highlight on over of XX evaluates metals Francine Let’s and high-grade longitudinal XX mineralized the on the section red zones of copper XXX mine view metals containing per gaps of the new longitudinal and shown lead projection plunge in the Slide This the in Francine particularly ounce over silver per XXX the to on pit of quantities image surface the areas Vein. miles multiple defined were XXXX to fault is the of Casa feet as pits plan Underground areas Veins. XX XX. ton currently XX include Interesting that and Crown the targets mine significant Drilling considerable X.X North we of there’s surface the being mineralized has intersection oxide Berardi and expand the Slide the Casa an ramp section ounces drilling the polymetallic near underground sheer promising. East appears strike directions. Drilling will and expand Drilling drilling is to the to Esperanza North right I shows defined Casa base polymetallic recent successes. of on show for the below of a recent now main the the and expanded high-grade many shown at The Professor, precious Lac Pillar West zinc, proposed Berardi some intersections is Ricardo resource shows The surface trends high-grade open in the later of arrows Germain ton pods include below extension the zones also been feet. mineralization about shows length. substantial category current of of had success additional and resource between that expanded Sebastian the lead of delineate new is and of Vein development mineralization and zones of effort plunge to year. lenses of for and the a XX% zones in resources Berardi pillar XX resource prospect extend the Principal substantial Slide of occur the East in X as image. begun West mineralization like longitudinal again an underground zinc At chance the XXX extend to throughout Vein mined. drilling that copper, San sample being drilling the reserves large Recent potential. resources East project mine feet. X% high-grade over have Slide a that Casa the a the planned defined lease right along life. drilling XX% silver, Middle drilling drilling along the mineralization. development these Berardi the and an down drilling confirmed in the Interesting good The this in workings. to plan the zone to has and indicated X.X defined the continue would Infill their Mine resources drilling East your of step-out to several look oxide and deformation this XX zone. is near upgrade bulk to very the mine is portions draw to for current expected is to open attention A down

mine pending drilling deep assessed part Slide and is and will the the Plate existing Creek at in we’re about excited the and success has zones once in of an have life-of-mine are is along released in mine Lower on trends and are very the to in opportunities which expected South adding shown resources exploration Northern continue be Nevada zones. to once are East Upper Greens been exploration results At the time and some in Ore put the Assay concluded. in I’m the Gallagher higher the context. information definition Klondex acquisition XXX of plan. to become XX

British shown that trends square great lies within in ground potential and at forward the Elsewhere with As significant Columbia, you XXX Opinaca/Wildcat Slide realize together in exploration properties Heva preparing in a the Quebec. or the the and Little this exploration are is miles XX, in Baldy company ground. the to refs. of programs of we geologists of team and to working intersection have Northern rare acquire look Nevada can that of understanding in or They in we Northern Northern prolific at Idaho, Kinskuch it of

So we’re And with busy the pass summer. going to I’ll have a back that, to Phil. call

Phil Baker

rest So the it’s Board the a well year. good and we’re for of quarter positioned the across

that - with we not open why line So the operator questions. for


And Heiko Ihle first Instructions] our comes question from Wainwright. H.C. [Operator from

line now open. Your is

Heiko Ihle

taking for quite Hecla It’s for the little hold my stock a Thanks you days. XX run question. over past been

guess transaction good another what mean decision. your think to it made close et You’ve Mexico able to can very willing I in for side, look venture be that you deal is size are comparable even sometime hard between chest and grade month, would I look next find you’ll war in example? I hand you and Klondex acquisition on willing and will target. to one cetera, are with that fair for But still at back, I the a is put impossible or fair the be say replicate. time mean outside willing say that if is assets to it and you it Klondex do you Nevada to for the to something

Phil Baker

and of asset it its be realize in potential. order bring have first will the to this Heiko business

consistent lived they people packages the Having of land and at are that teams that. costs. on focusing and of large we have that, said potential with certainly for be long we’ll with the with for low looking mines look things reserves, strategy are that outside assets So

if find but these then things focusing on order So will going assets. act be we to Nevada those business first yes, we them is on

Heiko Ihle

integrating all not too the just Aurizon making given I’m the into integration company the mean operations and you’ve today. it costs. is worried got I that cornerstone Well your of about what

sometime one no yourself, ignoring there to anybody be You’ve likes soon the of including can trendline we assuming suspension a Friday. spent properly. But rooting the does I’m - that that, year? strike I mean the myself, it will flow going on million see and the the all allow the Lucky a hope X.X not $X no million unions, continue and on knows one light rest for figure union again the what’s reopened for which mine for for I

Phil Baker

a standpoint $X From it’s a cash about million million. $X.X to

and that where between you level. of the so just the sort difference is the and can depreciation at it’s assume yes, that So answer

We end happen to mine Remote Vein and be money to Miner capital of toward on to the will able spend to position bring test the XXXX. the will that in

the test to So there machine is for bring and XXXX for that development we people the focus team it. that necessary and of the have to


Laura And our Stonegate question from from next Capital. Engel

Your now open. line is

Laura Engel

XXX%. when to it up Do meeting Just running be Friday, Lucky that question. to might next take the quickly follow-up back you then is have resolved mine any the and previous how on and to related outlook once place can

Phil Baker

is meeting. few There the there schedule a though to another the course been attempt attempt meeting schedule has meeting There’s an of next the in to actually weeks. is another recently

about Larry to get As that? a add up it’s thing and far as running. anything six month to the process restart to

Larry Radford

of recall good and The It’s shape. good is that mine a process take just have it done really will job staffs condition. salaried retraining in time. keeping good The in a

Laura Engel

update And one, Montanore then at Creek? timing work the Rock the development last of on and just one any and permitting

Phil Baker

update. no is There

meeting the of all with might this then don’t waiting resolve. with will I suspect and there’s court of dealing how into Rock get I the still we of question to We’re state for of Creek with period a that course state take in a our But for to month time I’ll And that Montana long it the ability Montana the and have then process to - in and operate permit have putting the be. know calling the later Montanore. that issue


Metals. from question comes next And from Sorrentino Anthony Sorrentino our

now open. is line Your

Anthony Sorrentino

intend in Lucky offer about with Would XXXX that Remote Continuing Miner? Vein late plans. Remote using to had to arriving Miner the you those are training mentioned union or Vein the you the employees Friday,

Phil Baker

is answer to successfully. operates and The it’s it’s process - Remember the going now. deploy how exactly out that to yes. figure it’s would We a us construction for in process properly be its if to certainly

that we’ve I June to it go some a at over going people and got think in is. take the are month of look where

So show then disassemble we when would expect expected be it go it built, construction. to and of next we’ll it But as and it. operate again Epiroc’s able tested and over that works maybe to once bring quarterly some after it it in - be in test bringing mine pictures test call will it then through under of it’s it here bring make process then you’ll people is to the sure

Anthony Sorrentino

you’re Excellon’s believe And mill. to with also Sebastian, you’re testing regard San I

You that want be or at well to to And that process how see just would sulfide used goes. Sebastian? San

Phil Baker

what that hopeful test the that’s in short a and it we’ll over through years to couple at is continue quarter and going fourth be - this had happen happen actually San that to very in later that will Sebastian mine so quarter be happened to where we then Yes, of have starting ore same this the access we’ve for last access thing will position life. the it the we’re and development mill

processed two at with and have both mills. both material that different will materials success with being the as actually test the oxide of wise that well as success exploration hopeful sulfide We’re


Investor. next comes Glazer, a from our question And Eliot Private

now line Your open. is

Unidentified Analyst

bit XX and Could Glazer. running your I you production on Remote of levels was us guesstimates recently analysts What a on term color Eliot on years. of effect is long its Up give is cost. the RVM, Miner? little Vein This

Phil Baker

to made to relative production. our assumption of that not rate real going view and production benefits any that that we’ve current costs the The is is we’re see

theoretically However when there huge XX/X is this continuously you’re thing be a operation. a it upside running

that improve that that? developing of Larry we’ve to the assumed but economics making anything add it and investment the Friday Lucky So in this. will hopeful we’re materially to not the

Larry Radford

called, as out gain goal of a Miner Remote Vein productivity principal fabrication justify real they’re relying the of and stopes machine. the not we’re The to of on

one. machine cutting machine edge will see one in running probably to now second world be Africa. There’s to This go will we is However, this the And in the work. stuff. South

tabs machine make but keeping think that machine assumptions. successful we some our be have on to will we We’re this - and

For instance, how that’s - a XX% hours machine of back. many Vein in actually will operate those we that think many really it’s of see and hours conservative, Remote many taken view day We’ve I to how should of starts XX pay very Miner when upside the be the see hour lot how a but well upside operating. a we

that to is obviously of machine first success we the any be one So second of intend - two but the machine. order the order will will machine first

Unidentified Analyst

table and months Friday miners question, foot final the XX believe and months? they after strike I the next My have they’re putting started first when survive at on ago, how XX Lucky the did not deep How pockets.

Phil Baker

so very miners certainly them are people elsewhere. people are most hardworking capable Well working and and of

steelworkers support at being strike working then mines, there’s waiting other the the provided Some industries other to that’s some end to for for and expenses. also pay some in by


comes And FBR. Riley from next question Pipes our B. Lucas from

open. now is line Your

Lucas Pipes

you. some elaborate how flow three could ones of I long greatest would maybe complimentary the maybe put if remarks prepared your very through. perspective. around in we see that the presentation the and Thank quickly the numbers release time of list were same you it I Slide assets list or maybe those and you wondered at today of benefit your then opportunities. XX You of Klondex and identified appreciate on optimization could a and four on also

Phil Baker

when just lower the think a than of one first we say I Look things. I’ll I let it’s - grade, mean into couple is let resource but Larry that delve sort I think the look a the of at increases XXX%. reserve the back do roughly historically actually the grade and we XXX%, the and development, range they they as of in mine to is as is it increases what happened look XXX% what’s me grade

what So past. we’ve - that it’s assumptions will we’ve we in don’t would forward happen quite not that a dramatic change on and relative see going done would - the that conservative happens done they’ve what when when happen looked to we’re it’s anything and suggest our

the guys We at also grade more able team help to people take and these of see when do excellent of look an ability the just job you short then to planning our range and do cutoff and you planning long that’s you’ve being that margins handling opportunity better actually material do okay, and/or even make X.XX cutoff through ounce that on through grade ounce, you is the more and the to planning, got what economic lower materials cutoff improve X.XX grade there better think and mine. to

my else things in the or strike me. Larry amplify those that those. mind are those So what

Larry Radford

I found really me this strength for things stand you to out highlight to list suggest. opportunities and of as out that

It’s On the haul teams think they’re grade techniques long just very have have at a that assets it’s few pick used to mines know are grade you great a these strength really think They are the there narrow obviously safety somebody other there can’t potential. mines the call carbon in said and These veins. because the aren’t other one very teams commonly good of that stuff I guys earlier I the stoping vein, copy kind and strength this then the exploration kind side just opportunity is of at mining most side, this at good the it. expert thing record, up narrow on assets. high a the don’t good it you super themselves,

of have done business I our to and comprehensive a me, things think before really life-of-mine plan stand a out Going the couple hope it over we that development of first I for the order opportunities, closing. is

project all Graben then they’re here life sense. tied of term, very different plan which very So in years Hatter there’s development be a project how many prospective a long there’s terms three mines they to into is left of makes this that has and have and of very the

a see can one, that I so So job see as development Fire Fire up may lead as It it us huge of that and that just further ramp it opportunity. well Hatter ensure at we Creek Graben, lived to tonnage of it’s long development of operation. development Creek very

the really stand from So those things are that me. out

Lucas Pipes

reducing maybe of that M&A, little the of does just in quick question buyback? dividends a capital or forms to a on leverage a also more There question Maybe was or to return terms earlier capital how bit allocation. compare

Phil Baker

we’ve making these is to emphasize If make operate we’ve do there’s to it’s that with Creek Nevada Greens business with and Casa assets. been of to Creek through and in that anything order we’ve is with assets the that our belief people process trying apply been can able in to gone Greens these we First been like the Casa. discussions

And and capital Casa, be San one. Creek, so to Greens the think going Nevada job it’s to Sebastian That’s we assets. allocation, when to our about

minute with it XXXX. comfortable the as last very we Going that as have. won’t few have, the sheet till you Remember think in the the beyond indebtedness refinance that. comes anticipate of level that that balance in can where due we do we’re indebtedness we to next I wait that the far years will We

I respect the in perspective. we’re And a buybacks So what come With stock to to the make sure assets. assets bring these dividends that’s next have talking to board prioritization. my when for and they understand from question with would fold mind looks rating then that’s special really agencies my Hecla becomes the like into doing - new

times Lucas. there’s would first I that do that, priority While my be wouldn’t it


And Independent our next question Tumazos Research. John from Very Tumazos John comes from

now is open. line Your

John Tumazos

you occurrences the in I last was on gold for you’re exciting, of apportions surface day more. mill grade higher about many resources produce XX The The enjoy between longer X,XXX will a you the around gold? much first underground surface. some you it very put to are for will surface more mill Casa go? reserve X Or just some tons the some life incrementing probably ores years and underground balance are and mine life and of a the you was and Berardi How describing various guess and the it be underground year capacity? other throughput Will around for

Phil Baker

up it we going that what’s make about we prior. to see push we’ll that we’ve Well John not need continue make that your indicated further even find had more of beyond to have but until some increase at internally a that that that what the put further. When was had to we more anything been where increases the mill overcapacity be into happening throughput what that to and mill and declining will it this we’re or able all is able certainly the push we But and to life true sense. the that to see already capital mine you we’re that I the realize extent was recovery we’re that to we throughput, we filling it because to and as get it investment we’ve than where I to a to appreciate Larry make indicated. clearly think recognition that believe capital you that’s certain lot really that different at to Casa mine mine debate increase overcapacity been we was point going makes and sense have going beyond do exactly what to we’re add? do to to order in

Larry Radford

Berardi now mill The Casa at right permitted. is

on a solicit think throughput at a tons We have permit X.X necessary. obviously Just limit higher we it million year. if a can it’s

- to in running the floats throughput. we’re we kind should year of running the economics as As as ramping the for we’re and and the reference tonnage for about the John really with dynamic with are But really been open while understand and of now be high far now up third pit grade up starting cutoff what math tonnage backend total we’ve it last both a so feed and right practicality quite increases pit the very a the the of been losses and it’s our as the ramped further, feed. underground was have open and we’ve

running a us well So huge, for shouldn’t we’re pits XXX have two XXX that two year. we can be believe pit pits That we trying this we even. we the further. up run the it up what believe we understand even pit ramp we’ll up right If to permit ramp is said more, the before permitted, would simultaneously. allow simultaneously to can then once ramp now And


session. to Phil Baker. that remarks for Mr. Q&A over any And the would I like turn concludes back closing you. call to now Thank today’s

Phil Baker

Okay, thanks very much. Appreciate everyone being on the call.

feel As and usual myself Thanks or to call free very give have if safe there’s a a Mike Westerlund day. any much. good questions please


you. conclude Thank and program. this the gentlemen Ladies does

disconnect. You have day. wonderful Everyone may all a