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Hecla Mining (HL)

Participants
Mike Westerlund VP, IR
Phil Baker President and CEO
Lindsay Hall SVP and CFO
Larry Radford SVP, Operations
Dean McDonald SVP, Exploration
Cosmos Chiu CIBC
Matthew Fields Bank of America Merrill Lynch
Heiko Ihle H.C. Wainwright
Anthony Sorrentino Sorrentino Metals
Ajay Lele Southpaw
Trevor Turnbull Scotiabank
Call transcript
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Operator

Good day, ladies and gentlemen. And welcome to the Fourth Quarter and 2018 Hecla Mining Company Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time [Operator Instructions]. I would like to turn the call over to our host, Mike Westerlund, Vice President of Investor Relations.

sir. begin, may You

Mike Westerlund

much. Hecla’s and XXXX fourth conference operations very joining financial you us results for quarter call. Welcome you thank everyone for and Thank and year-end

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

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

the our measurements in GAAP which on measurements the nearest available at Web site You to can hecla-mining.com. these reconciliations find presentation, is of accompanying

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

Phil Baker

to is morning everyone. the things turning the a and couple you over this I call on Mike, specifics. to Slide We're before highlight going to There for good start of Tim morning for Thanks, want X.

have price fell also record mines best least the a lead getting tons for way, level calculating set reserves in lowest profitable went that assumptions zinc some through Realize done of for assumptions The more the records been of means first gold short. done it and the our the with industry these X,XXX matter, reserves history better. But would was We acquisitions. are bit, our still margins. significantly not even by ounces reserves drill our our is and thing highest price and in and it with that up reserves are we're the have silver,

when created not equal, reserves high Alaska remember great and margin Quebec, jurisdictions. that in largely are answers consider all ounces in you margins have we great So

around indicated all an well XXXX. to measured reserved Greens the increases mine resources the reserves was extension in to and we the of was increase is inferred. reserve life about In expectation My most as in our Creek the future, XX% notable XX% had as metals history addition, most also in of for and more particularly,

together Sebastian, free we observations. about made answers, And not market mine, questions lots you model determine capabilities. expectation progress. came longer. and have is flow many visible for our Also it that going consider billion of mine think longer XX produces Casa, getting that Greens and flow. of you the the when over many the XX Friday be It's free we've to you is half the cash If and dollars about to it billion Creek more next mine. trying could I Lucky significant, of work maybe progress the has different free of cash revenues last but couple of with is taken we their of sometimes are just and of might generated want remarkable years produce decades, over of years X a granted. and statistics different This There resources, flow. five the San be and other the were that Larry life our Much of My steep bigger dealing a also me grade lower Mine the suspect in as just but few development. from Pillar and better in Nevada. Berardi the operations, Nevada yet, our conditions in Casa in with trying I wells we I will Crown get and the to XX% Casa, we're we've pit Creek and is all highest a revenues do I and to about drilling. respects made cash more our prioritize, Greens pit back work significant will Casa lived. it revenue, about gold like pit, to to definition are pit slightly grade ways XX% people of reminds gold do what to XXX,XXX adding which and the with than our only new on we about have still we share it where you in talk reserves notable been XX% total to is my to do of our reserves. acquired produces ounces increase of of we're West This three it It mine but surface

these we take out we're a necessary get a figure for time state, Nevada will value to hurry of while operations the challenges long-term. will in deliver So so our to the steady mines, to the

of the rest side want there the stories one from that Sandvik right and slide from in it's to By also XXXX and on the GM PowerPoint of on the of the Ground Magazine centers Sandvik it's XXXX Before the read is the called Solid are from way, our if operation CIM. which other to autonomous times the trucks website, the Casa featured. and website Alain cover photo Grenier, SME I team article on XX two are move like on point out Casa haul I successful mine and other Berardi The to the two our on you'd it. that's from Berardi outlook, of

costs cash If 'XX exploration due is and higher production gold is you of The costs in gold per cost capital, year be of and have production provide we year ounce and considerably expected We side Greens the had to XXXX, is year cost business as about an similar to and lower and of in similar Creek generate go profiles exploration which where $XX a Berardi slide than slightly cash. ounce in to Casa 'XX $X.XX The Sebastian than $XXX of grades all prices, million all R&D be at to lower only production reduction for higher. $XX we cost. million. our When estimates were with X expect estimate production $XX. at to San Estimated free you expect the last for estimates lower today's cost Nevada production costs, expenditures that last million at we silver to X,XXX. Hecla causing in added capital all full cash XXX less

to Lindsay. going call So to I'm over pass

Lindsay Hall

Phil, Thanks, good morning and everyone.

all-in the million we net loss last shareholders The the net or reported loss all adjusted quarter. to in applicable with byproduct million cash occurring cost $XX $XXX $XXX X, adjusted almost $XXX share, ounce per cash was Turning $X.XX of during respectively. common XXXX. loss and came million credits per share sustaining Gold Slide versus to of in and both per $X.XX cost after $X,XXX at EBITDA

XX% with operations ounce. that revenue We almost diversified be byproduct per were happy and XX% We're work we what more lower cash that of continues revenue cost our two are cost source $X.XX we Green that sliver which streams our at of cost, and cash silver be of are equal. the dominant through ratio XX%, $XX.XX X%. revenues gold operating than at nicely our to revenues. X after are total metals gold higher had While of transitional Slide at the Nevada the cost while credits we sustaining lead realized at Creek believe reported normal our zinc again and issues. other XX%, all-in contributing with shows we units

not production, primarily San operating to million, million taxes was lower million are grades the $XXX,XXX this amounted Nevada at prices gold other had the from where cost activities reduced realized primarily Moving resulting surprising approximately a circuit and profit, at includes Slide to generated silver Sebastian gold million XXXX complete million, in that record mining our operations $XX year higher. slightly offsetting including higher million On the we $XX operation the dam basis, recoveries. with was is $XX upgrade realized which XXXX to lower Sebastian are moving invested versus Nevada and lower Revenues million the in year. to towards to expenses XXXX. XXrd, improve July cash million, Lower and our underground the San $XXX $XX mining from of the loss year. year net lower in an silver operations totaled the $XX record at effective to $XXX and mine it to due completely sites. of at acquisition operating pit of a mill CIL as reduction $XX of million year. This invested consolidated and our operations that new $XXX is at than We this and Of mining in in $XXX similar X. our ounces that million sales operation tailings price last which to for last contributing Earnings offset

a clearly mines happen last Nevada didn't goal acquired effective and which in cash with operations have that produce of this of of each July We we free that year. financial flow discipline should our

cash operations the Nevada in we'll At in no some sites, flows Graben more XXXX, have of for sites the planned various major mining and mine and capital invest the We those flow decline. Nevada XXXX. of the positive, development cash be but in initiatives will the around exploration we Hatter mine expect

year-end, at hand. credit cash the Moving the year-end, which to had includes at in which of in undrawn and sheet, line was million the liquidity $XXX $XX $XXX approximately we a balance million on million

million hold bonds at existing monitor Our Xst current are resource able to $XX bonds bonds at were in The debt at and consists refinance on this the today, May par higher year. We million bonds than while XXXX. which we in repayable X.XXX%. XXXX, capital markets are continually Quebec be in to due of also $XXX rate of it of the would rate callable for

focus generator, our refinancing building balances up cash into flow operations to a Nevada continue about our patient expected bonds. and being will cash turning We on of

interest out, have to new use may we such these for methods using high We bank our single point accommodation with debt, we be XX which release, reduce the I’d are to issued Also, higher credit methods net issuers yield market months other so debt was have as back EBITDA that of calculated being other in the representative to our of pricy currently to be expense, continues assigned. than interest typically total rating last reduce debt future available term expense payments. B bonds and our a X.X we

about a excited beyond. it operations. So Larry XXXX that, very XXXX in about to the talk are summary, had potential on for the good pass we and I’ll and to With

Larry Radford

good and Lindsay, morning. Thanks,

improvement start So a of year. reduce incredible I man we rate from you very without XX. declined hours that frequency recently XX% X we is again loss and see the Slide statistic injury this the Also want time This with, year for all work can proud to companywide, million Casa as to our mine. on frankly reached it the of XXXX, highlight XXXX accident. that are that is This note, Berardi an acquired will

injury. ounce, we the mine revised on Slide end Greens Our to another a highlight next also jump a the commanded, flow. the a Lucky also big staff had should addition, silver important million With since of at be I the added strong generates cost few and the operated reserves the reported this Greens new cash years mine. we have mine the see the the the is of development in producing in on highest reducing performance and life in is material notes value Friday byproduct X of again that Creek $X.XX tone contributed years, from to our to report. team increase half ounces so mine of resulting working three throughput record mine can mine be strike of the margin of two hard a seen as X,XXX technical Slide after significant the silver at cash most about good which per to time XX, over the that of moving or With on want year, life years time done still day. per is next as XX work an our was without a having supervisory Creek

quarter This better acquired Moving highest operation. level was performing was the took a almost per record onto at primarily part as just XXX,XXX the X,XXX XX. The bit due day produced production per XXXX, open keeps of X,XXX gold The tons The XXX as X,XXX feet mine average about operated of the and a fees. Casa primary spot XX. which replacement an year. on run of per the Berardi the more We've on per quarter Slide and basis. tons in accounted for of and the Slide in Casa tons day previous a throughput crushers is since when ounces mill removal tons day with mill In Fourth the on XX% the XXXX pit crusher and better. production shown fourth day higher greater due capacity than we milled tons for at week. acquired. was over lower X,XXX the mill than the to XXXX a day quarter mine the to than

all We was put cash in reflecting surface a Pillar continue Crown increase in Casa increasing -- technical is being throughput we what be the together significant surface pit. it generator could Berardi study also for Mine to second and West fifth even further. the what XXXX our in report flow reserves the pit highest

to XX, where on of Slide Nevada most is year. on this focus move our Let's

terms and have access We the are understanding ground conditions XXXX, working team in we turnaround of getting plan. In was on Fire to a on operations the the plan on organized. and that at getting focus back Creek the track

a We this have long in way come regard.

immediately Creek, we one to large for two opening discoveries Nevada We drill. the Fire to expectation which The more cost resource and ground and equipment need the be new complete is trucks, equipment. from that Our the can of adding will fleet total and of was $X management. upgrade have we're and about grades shaft process and ramped by done and now ore mill in We've and up Midas the simple back develop Hollister as productivity. from review that better the conversion to conditions working improved two upgrade the is million as into bolter on new be resulting the zone. equipment minimize buying can CIL some and go strategy of believe of implementation two development development through added rehab the fleet with expected, should production up loaders, is The increase priority process case plant jumbo, able [indiscernible]. ore is

of goal and this of January additional exceeded on were day should up XX in have maintain Slide and possible target production. headings level increased annual We increase our because the feet this XX development be as to that per open shown will

Fire transfer for the Midas XX miners. through of underground manpower We have manpower in to about Creek for XXX wrapped Hollister up

resources Slide to we At XX, discover over contractor has materials speed a San we Creek Dean. the half run roadheader development tough that the XXXX midyear sulfide party and and have the weighted oxide increase per Fire of The and priority worked step is wider which collecting has throughput in should through type material development easily XXX cutting quarter. a of it soft helping are well third material, brought was end it tons finding do the group to of fourth We second now at additional tons to mill day oxide both which towards samples potassium exploration the the to of gold hand by on Fire which we the chain. definition I'll means an quarter average, per Dean's year. be we have to and planning Creek important Our of We're into for will more of day this about Sebastian increased and XXX drilling now from upgrade it's second to have currently production up ore. the considering resources. to group Dean's as are stakes is application a

Dean McDonald

Last to results, ounces X% primarily a modeling ounces the successful Total increase potential reserves result reserves the resources techniques in grew and our lead Larry. important the million history. mostly XXX The due we terms. XX% reached the of Berardi Silver for XXX with due levels week, suggest from pits drilling an increasing and a Thanks in reserves gold good drilling. from million highest year year, resource in in as of Casa gold silver, X.XX is to improved Greens of combination increases this to announced reserves also increase advanced of silver by smelter at open because Creek future. last

We the at giving Appendix Casa and are confirming exploration list A resources XX, San of Greens expanding. successes the in release is the of continued Sebastian. insights with fourth B on aggressive high-grade in provided drilling Berardi, drill programs intersection and Creek we the Nevada, quarter, following into February

in at see you years. in ounce lowest to XXX been the consistently X,XXX commodity Slide shown XXX we success Casa expanded new over Mine with actually for over left has drilling during As new critical that reestablished the again past silver convergence ounces from on of total series in coming economic prices resulted of a look ounce the can XX total along a see Mine in very was replaced ounces of the be possible last successful. added Creek, providing of of in are of West XXX,XXX XXX pit silver have for XX, the with the have the the XX On Underground and the Pillar underground surface considerable contributions Slide you XX XX of from used East the Berardi, shows per Slide particularly as The with high-grade on show can Casa ounces cross Principal pits At trends had Crown the the that and shoots surface, million mining the was Mine price particularly this red reserves Slide had year. the defamation in projections Crown Pillar that industry along and A of the the acquisitions. or silver are years, a broad and pits from closer access of there means where East million near Pillar evaluated reserves assumptions future. in was hand in added many XX Berardi in lenses gold year, now At production we and There grown potentially main growth Mine several past ounces X,XXX mass year. years to gold Crown reserves. some a cumulative will zone. reserve we for of section exploration no West arrows of the XXX significant exploitation mineralized pit addition open time. have million Greens and in zones the This near the

Ore be the studies the East Graben into the development in provides area late of year. with to for new at on the Lower how Slide efforts year evaluate little resources the and X The East trends zones. zones. mineralization of will opportunity It the and Gloria, the in the trends. lead right Southwest are resources technology more As Professor exploration to Titan in occurred reserves. the plans underground Slide the continue definition the mining. can to project our North South we'll new all and veins drilling mineralization in to In XXXX. Creek. Central Hollister underground the to the and zones spirals, and on the polymetallic reserves. Slide completed. that and Clementine goal combination on of resources trends And be platforms drilling Klondex spiral mine of South Lower mine, drills areas increased in in is additional towards underground known mine underground to mining the upper add upgrade we planned diagram, Plate Nevada some and in reserves hence the East Surface Hatter was until goal defining drilling Zeus in crews, drilling Graben is drills, shown definition drills we and provides West shown with exploration Francine location along more the X budgets shows April the targets. in are term both X, XXXX, extending existing that into XX, in Hatter is advancing move to urgently mineralization Gallagher XX completed Francine extend the Hatter Fire of identifying XXX to resources. surface resource very Shack for these the planned that East Three operating define of and Guard underground need exploration as acquisition the drilling be reserves two the Deep the in X, diagram the higher the The drilling term vein. on begin Exploration X the some Sebastian in shows in working adding plan the and zone we're the is shows for the Upper on will This being At with to significantly the drilling of targets XX, for in and Hollister Lower accelerating that and the more surface right drill Gwenivere and the upgrade East. are on April evident San near at and at Notice Graben initiated to drilling

advance and oxide new the surface to the oxide successfully mineralization West defining Phil. exploration focused surface new Nevada, of are on drilling call a at Esperanza is along we The drilling oxide And is pass opportunities same and Recently, and San veins. I'll define Francine that, to continue at Casa time, with at Creek. oxide in identified drilling. Toro the near successes pushing in new back El target further mineralization rapidly While define new XXXX and Sebastian source emphasis have hard Berardi at our Greens veins to the with the

Phil Baker

and We're Dean. just go straight operator. to to going Thanks go questions head

Operator

from comes Thank question Cosmos Chiu from you. [Operator Instructions] CIBC. Our first

open. line now is Your

Cosmos Chiu

was If my since better Nevada I produced. progress, some of sort what ownership Fire disappointments surprise on these in I'm a mostly at just been the handed are trying terms a in to Creek entire beyond questions handed there understanding of XXXX still in of has production, the Nevada year, in that I Hecla? what has to been may, here. to Creek over of Fire certainly biggest were terms understand reserves is in get -- but transitional complex a of and work you ownership with the as reserves, has assets decrease terms

Phil Baker

the Well, follow Klondex Larry us. surprise I'll start disappointment they But and in. then that to and budget think had the was didn't biggest and the I'll let I jump presented Dean,

amount result, a of than was as less significantly done. development so that was supposed And be the it done to was

really caused from reestablish to perspective, really probably And my the mine. to so have result, it us a biggest thing as focus the That's Larry? and has

Dean McDonald

challenge track. conditions biggest are [indiscernible] you're the acceleration is operationally, that's getting despite challenging, development the Certainly, we down on

Phil Baker

year. hit we There was comment drilling was mining of to on the them in depletion. there Clearly, no hard. and for the first pretty reserves Cosmos half just

-- mill loss narrowed time a is models, the about so, and actually at that reserve resources reserves. we modeling that we reconciling was and in conservative we and of new represented and wasn't that other to cut the modeling. reserves. those But in or tapping challenge really there so there changed size of vein knew our top the and the production we the existing the grades vein We the within the the very identify relooked really and or thing, refine the half are with so, And of consequently the

Dean McDonald

reserves, to of from have development why The in of resources. base roadheader want advance. looking in we Yes, to, work out make development build do progress go in in still sure hence terms that we development at a the and terms it's figure to the to to want a we're in we

So, think, and will we're we we pull -- we mine similar not at this to of what levers optimize different a before saw Casa there's Berardi. to lot

Cosmos Chiu

brought Phil course you and great the and know, and you Dean, reserves up it's Of that resources.

and you of are zones and number a Karen, current versus say X spirals others. Joyce, what zones Looking understand and you've I'm categorize new different X talked Honey about know just extension zones a of an of at identified X, X, these I'd to Vonnie, considered year and you trying that mineralization.

new touched and based trying whatnot? zones on get of spiral current be sort for Dean terms and that terms platform think reserve on like I to trying on and resources looks drilling understanding X, are a they extensions mineralization. of gauge just to extension the it in could an better I’m to in difficulty adding of

Phil Baker

I’ll Dean question. let the answer

Dean McDonald

really There of to say, all I'd existing. extensions are Cosmos, above. Well, clearly the it's the

you to Vonnie dip, opportunities let and There have and extensions back. you to the the are past. the producers that South, have Joyce veins in been go what as, step refer as be North but there in mentioned fact North may You've up key the me to

know X, we spiral in a you really We're in need they're a them the zone Titan have the think North there there's years. with drill new known expansion you few as seeing Northern development some North things North, of there the look some going define zone veins. trends spiral and we're to but zone in see view then them the have X Zeus series the you to kind zones, next and to to in defining new those is been near-term come We're encouraging. then point Zeus, of the an going particularly are veins the veins extension of to to and drill Northwest them that that for along all. place From preliminary So, getting that I exploration and drilling now with X, surface spiral upgrading are out, others drilling of certainly to the

Cosmos Chiu

terms there time. you ounces in of are resource here question current you reserves and be to just talked of would in still wondering. that and point there new the now, resource? Again, next reserve out concerns my a update? low reserve all into put progress put this understanding leads on we Again, other the that timing. on about to know at maybe past know ready potentially the When a that on in terms are you you then ready be would work When And market I'm but Nevada just had issues in potentially in

Phil Baker

determination. actually not have a made We

not and Our envisioning year-end I'm typical to that change we're is that. schedule planning

Dean McDonald

at point, on stay Cosmos, that but make our what this Yes, traditional schedule, change. we'd say, I'd with transpires depending

Cosmos Chiu

And maybe as incorporated been XXXX Fire how of a guidance beyond We've have guidance? much for XX,XXX last the reserves XXXX into guidance anything question ounces just production into Creek here. from a one but as reserves of Fire of whole of I'm the complex, Nevada that you be that incorporated given that Creek on wondering for sort

Phil Baker

Yes, the answer is yes.

this don't there of be it's you, first beyond as know I that that as is but Some anybody would what give could if percentage reserves know?

Lindsay Hall

the know number that? I Yes on exact don't

Cosmos Chiu

be based of of there will is bulk But it the I on some, reserves. it lot but guess a

Phil Baker

see into this a was did is to inferred Yes. going that combination, are we that would and this that. similar different We in frankly we seen you category. have be Well, the that Greens at we than calculus lot, even I doesn't certainly this part mineralization make don't convert happened Creek at it what And other it we've be acquiring is to mean, to that of any seeing producing reserves. even mines a maybe what where

Cosmos Chiu

last here. one maybe Fire question lied, Creek I sorry, And on

by X,XXX that increasing as in month ahead really your XXX ton mid-XXXX. Is Larry said getting per place? You as day think talked about feet I underground to Is throughput, per the bottleneck? getting on undermine development, simple XXX that

Larry Radford

It's by into our dive a key expanding in drill to we key also the development all place, is stopes the a Obviously, in ourselves, to of we ahead driven without definition need developments. expanding before confirm drilling doubt. throughput get that's

Cosmos Chiu

happy per level And Dean X,XXX Larry? month you're with feet or the

Dean McDonald

doing track. and our it less is a raise take some that's in actual capital we It behind opportunity little cycle the the more challenge now, improve We're right lateral of we now that's February mean, on. see this at phase we're have next But on miners we're And driving will footage. plan. more matter exceeded machines. I And we only we January. was as in actually because staying injecting that to on so Yes, bit

Cosmos Chiu

And I just people wanted to just make understand. sure that

trying for cycle still yet yet. and don't You're new plan things have standard a development you

You're still working that. through

Dean McDonald

Yes, at very drilling that. short [indiscernible]. typically working conventional are Creek still to doing ground blast, rounds the we're still hit We're fire which through

blast rib short successful, run solid we So, there. to back got roadheader of first at the left a we behind just and improvements was there's so material on have lot very trial hitting, The shooting opportunity injecting tech much very Lucky it down and pretty services very and have some learning now should well be. our we're expertise we as Friday site and -- making so, VP full the time we're have go, that and we're we taken we're we've

Operator

Matthew from Merrill comes Fields from question Lynch. our Bank of And next America

now is line Your open.

Matthew Fields

the in the in So in EBITDA or you've or is added begins on your losses back issued taken you've case since reconciliation, away unrealized as back derivative bonds contracts. the XXXX,

gain see for your XX statement, a to fourth nine a quarter you EBITDA of your but you income first of for in away. gone most So because the that’s in hits sudden know all months was that the million that basically

you looks like take million about X away only of it instead XX. So,

million. inflating case? why So, you're you're looks EBITDA like the me by that's Can your help you understand $XX about not

Phil Baker

contracts the that, is cash say quarter of had I'd in contract. XX we XX thing million we million, this first generated third the out from the that closed and Well derivative

able not the cash. have zinc that, we generate lead of -- to fell were we price that and and So,

were that. we so so, that hedge, monetizing we've done And

come up and positions in prices have for we're lead zinc Now, and so, back putting new place.

to those that But, that. -- that that the and continue put to to in grow the underwater. extent So more have add to Lindsay, extent rise, number will to contracts as we we prices will go anything

Lindsay Hall

still kind and allowed. million Then net the alluded cash we take received which that Yes, arriving the we include in hedges, maybe of to XX that's the the Matthew, of income, it's we covenants seeing, calculation, adjusted gain following we out. much same our EBITDA you’re on closing detected

Matthew Fields

in away you disappears million months XXXX nine XX year. sudden add of all back, that I'm first you the of basically a then the but and Right take full just…

Phil Baker

You’re cash talking or flow. sheet or about balance segment

Matthew Fields

you've shows on year first income but in… the is full as gained that million XX statement nine well, the months, up Income for derivatives in statement

Lindsay Hall

the Not fourth in much happened quarter, Matthew.

Matthew Fields

Right, fourth all agreed. XX now sudden And before have a of away. that look on income X but the you taken EBITDA you at entire away, the statement was from quarter when reconciliation the only know third release your million million taken quarter

Phil Baker

that, you're in on look cash back what and you're what I Head's we back the is third in right, the think to, check games out. didn't Yes, that quarter cast but… maybe the saying add alluding we'll

Matthew Fields

you've it at $XX Yes, I only cash look monotype but gained your like statement, million. flow looks if

So, this something screw the quarter add it million going can EBITDA X Happy offline take up how you on there because first reported the in maybe $XXX lot million a to fourth of take to months, of offline. and for numbers $XX is we supposed distant and just this XXXX. that's

Phil Baker

argue, screwing cash I We'll discounting next. with might be they're They're and it. just being flow not numbers.

Operator

Thank you.

comes question from Wainwright. next H.C. from Our Heiko Ihle

line Your open. is now

Heiko Ihle

promised I for one. time this possible ask I already question myself wouldn't

more Are to an positive the should this this your you asset over just qualify little sustaining to is X,XXX going all estimate mentioned cash flow cost So given bit be willing a you and especially year. that ounce? Nevada, there

Larry Radford

the Graben. will exception positive Hatter the with is for we've operations cash the of and be said what development flow No, the exploration that the

cost, the that, So, you we're flow saying at positive right from and when look if all-in look sustaining at you and see that. you we're Nevada at basically cash

Heiko Ihle

decline And obviously. is so to of… about is bunch speaking do there complete still XX% of then, And the work

Larry Radford

of at feet X,XXX do Hatter We'll Graben. development

Heiko Ihle

mean from that the Nevada have tons increasing XXXX. following mentioned, XXX by the of day I speaking tons And the asked. to XXX Fire per and up you Cosmos day per from question throughput Creek at

support? is the not actually missing Creek I mine I solid. that the as You've reading missing? Or focus Am I -- Is all again into here something conditions grade are Fire ground there ground also am are that from ground there? ground pretty and that's something development maintaining extra the stated conditions lease, thought your are this and conditions. your there on need something pockets been there? I into Is there at

Phil Baker

we conditions and when the brought so, base. conditions, that this remember synthetic Well, road fact condition liner have with we that with and but you tough we talked -- have to same that back we rigs. we that Yes, have weather created it, the when about dealt on on go the that's the you road to in come

this Larry? And alluded that's and that header so with through to what Larry contemplating shaft do we've is that's treating road going we're soft material. have why to the

Larry Radford

And it a Yes, feet fair very heading. that can the XX you short fits And good material it's see for a clay a times support. and altered [indiscernible] take and tuffs of we into run albeit and like ground given requires conditions additional variable. amount rounds day variable, then very

Phil Baker

of get and of sense then the into road, you you also difficult the about have if if think those you again you water pictures operate how it this And in. a look introduction which of tough, becomes -- to soupy at

conditions. changing the to trying ground the figure we're best way to deal so, And out with

that things. trying to the conditions Larry. And a we're so, coming to series I'm continue rather of new interested development. point on a make experimenting, But, about we're so why being more just ground the than worried I Larry standards in depending that's getting

Larry Radford

water water not more we're You've a dewatering looking mobile in certain managing water, and there's the perks we're of underground. so a pockets plans bit mentioned that at

well yes, photos very some right Phil shown them. roadheader I be, go the if large mentioned roadheader, I'm seems the of for alluded, we've large a to now. what and the trialing as doing there. team roadheader, manage jack may a it right really it poor actually it's So, as advanced of we're And to the We've we got and in grade. as we've we're all conditions really that shown, small continues roadheader up a to perform

Operator

Thank Metals. next question our comes Sorrentino you from from Anthony Sorrentino and

open. Your line now is

Anthony Sorrentino

$XXX Would $XX estimating You're at XXXX exploration million and property? you those expenditures down break by XXXX million. capital expenditures at

Phil Baker

Sure.

it had Someone or… handy

Lindsay Hall

exploration. the I’ll talk Well, about

Casa it split XX in exploration So, areas. that Sebastian, between you of and Anthony, outside the will million, will be of Nevada know four San and There'll remainder Greens little Berardi, the very half be those Creek. be

Phil Baker

And Casa Berardi was X in Mexico million. roughly

Lindsay Hall

X.X Yes, of… Casa’s sense

Phil Baker

million the And as goes, million each XX about Creek as about XX Nevada and it's the Greens Friday, far million board Casa Berardi. XX Lucky that for capital then for and

Operator

from our Thank next Ajay you and question comes from Lele Southpaw.

open. now is line Your

Ajay Lele

your about term Casa like into from outlook of what reserve ask medium announcement? looks Berardi pit recent you mine underground for to wanted the cost plan open as an move just more I

Phil Baker

percentage anytime on the to of of reserves number of surface soon. planned the really underground adding the underground reserve there's Yes, change in periodically. no and and years based current a have We'll you we're know

twice it's the that mine maybe still higher a XX-XX not added will a surface and West grade and stuff is new So, the the from the those open will average. grade grade not change, we've the pit be about than of bit more roughly much. underground The little

of the sort all, in expectation surface. cost we our and as maintain both the develop is all So, underground the you structure that see

Larry Radford

per raise addition a to we permit and tons, that. X.X going the apply So, limit successfully on at permit the make increase premised some million and to year, limit we going are Should pit mill. at and amount that's we the all into mill an the of in tons could of metric adjustments for open

Phil Baker

Yes, would that's increases right. And how be much? that to

Larry Radford

for Well, $X.X we're applying million.

Phil Baker

So, million more? X.X

Larry Radford

Yes.

Operator

our And Trevor comes you. Scotiabank. from from Thank next question Turnbull

Your line open. is now

Trevor Turnbull

the had so simple year, of simpler one some there understand to stuffs it to you're might question far? call that's I make quick going any discussed Nevada. this with site have just to the question, a respect been Is chance on very visit

Phil Baker

this one have will we sure I'm year. Yes.

different at site. and the his plans haven't the opportunity to we We team the conditions there bringing any to before resolved made moment. I get for the in want onto development specific people the Larry SAPs have start

this while in still So wait. it's learning probably phase, we're better to

Trevor Turnbull

some is you're Dean and respect Larry think XXX Creek? guess Are reserve level potential I of there other to thing, with silver? that's the for kind on order with Greens. more us you've silver got likely Greens of grade Creek. and of these the similar like be My Larry at now. grams of going look what really consistent Dean, you've to terms areas a give in coming to maintain and Can exploration we're I first what reserve you at that additions got a Greens sense question the

Larry Radford

Trevor, per ton, XX.X our resources XX.X this going year. My think that converting this to XX.X you're with last reserves we're potential and and so year but Yes, see last that announced I to at reserves. is XX year were to expectation

for grade huge metals, grade higher see same are the these that's the up precious reserve is and high metal higher narrowed than South reserve grade couple true with that's rich, so grade, with that Overall, grade mind. very the will the exploring of more And ore. areas in East those We upper precious XXX are overall but in overall. Deep changes the both don't of I plate, see areas the to slightly metals going you lower the base fluctuate. And

Trevor Turnbull

is lot given change the the of all base maybe what to at already value of about versus you've unlikely the got. whole that, in a NSR you're think ton really So terms metals it looking better stuff to per is way the

Larry Radford

good that's think comment. Yes, I

Trevor Turnbull

below you recently. a guess such to grade move been might in grade So bump reserve sorry, few might grade understand degree forward? Are in of guess for of kind some to reserve looking reserve about the you of are trying question what what aggregate really to still and degree dip and moving -- kind of forward? to kind the presentation, certainly I pretty the going that? is, you've kind it there what you just Are significant ahead going and plan also grade of above And of talked on then kind it high-grade of the looking deliver I be a to mine kind at, forward my slide is you're looking you wondering maintain material like years of the that I'm I get in little to you feels for

Lindsay Hall

the will head, Over reserve or production of can't top grades that, remember of my generally generally XX-XXX, be sort you'll higher they be ounce what to that will Larry, be will the be. off but higher don’t, those what we'll has it But able have been. XXXX as Dean. years, a grades next speaking, XXXX have I have speaking, through than four and the result, see will production. we in

Dean McDonald

is the This year. exactly technical match will of next this an not report internal. because more in Yes,

Phil Baker

includes This inferred everything.

Phil Baker

will Yes, this year should but report, idea not of be next silver. you technical what ton, we the match to per going it'll an be the give a is ounce of kind in XX.X

Phil Baker

years. announced and are it call that two next for So the

Trevor Turnbull

in XX% healthy that or to I referring just Larry, also where A Slide the deck. so better been. XX than it's then And guess

without that I'm huge You still development savings true all old bit it show existing away could explain gone eliminate you've looks get be much simplified which you the needed a about looks that could came little development of to? Can too that rid you achieve to you to to using able been and workings. just do just get all what is having that do with you and design ramp good to almost put like more how pass obviously what you that curious, and need a that to a be ramp, in a to what looks to design. you've this

Larry Radford

pit from XX,XXX the we graph, the showing our peer if but that graphic coming where report, East be The and just one included part this is the end mine in section published all a is Ore it not we're of we and is anticipate the very example. of high it. of This there'll when we development

are Some the just bodies, are can complicated going off are do. how come have we we thins what in good a And we complex. this access or less as things have seen, more actually of example, these we're of, geometrically to its development of the the existing three

actually it's no amount feet its is XX,XXX small So capitalized of money quite significant.

Phil Baker

result a think to bodies of clear being to the to more a and able point of ore the data these build I as are. take as this But picture some where of come

I been give for Frog, to I advertisement don't Leap think very it's mean helpful. I think but

Larry Radford

been able been challenging to really well think I contributing zones when is develop trying that ore bodies not as model. I to ore the underground optimization a the mining realistic time historically delays. causes you're using Greens but which the ore models planning think and Leap sampling primarily that's of And the that create adjustments at and of the drilling, you As outside able incorporate, modeling and had more the course a all lot bodies geometry lot mine Creek XD of of know model of Greens we've wireframe to Creek Frog particularly are only to

of I geometry our that better models job in recreating think we're doing a now. much

Phil Baker

and result we're can a we the what much put And with has. we're efficient That be how so we're of as that, designing where more development it. Larry

Larry Radford

last the if is they the have and just XX cuts we foot mine were Yes, plan, cuts. Fire horizontal thought high

we And lines ore the them, it -- off the got longer soon it's ore stope, towards fringes designed as and of the we center as paid more cut development. more made you you more so, well no as just to we've our not for and And adjusted actual efficient geometry the bodies.

Operator

remarks. showing I back questions And to this call turn you. time, to no I'm at any Baker further Mr. will further Thank Phil for now the like

Phil Baker

say busy The for it's is, day thing guys I of I'll you with calls. only lots know,

might Mike to Thanks give question in much. that So Have call, day you happy day. have. feel good answering or a later the I, we'll very a free to be more

Operator

program. today's you concludes for gentlemen, This thank conference. and today's in Ladies participating

disconnect. may have You Everyone all day. great a