SSR Mining (SSRM) 22 Feb 192018 Q4 Earnings call transcript

Good morning, everyone, and welcome to SSR Mining's Fourth Quarter and Year-end 2018 Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Stacey Pavlova, Manager, Investor Relations.

Thank you, operator. Good morning, ladies and gentlemen. financial fourth will year-end our provide a of Mining's during conference business SSR review we which an our to quarter XXXX and call, and Welcome performance. update on

access discussion and discussed Our financial SEDAR during EDGAR the Please you references in figures there To sold. our all-in will note are to dollars, per and is U.S. metal analysis website. to been call. available release our our filed to are find and on and that also accompany statements ounce on payable have an and All call news that the unless management's relating this and call, costs sustaining indicated. online information in costs of are all otherwise webcast, cash

today, be please the making disclosures in statements documents. will the forward-looking relevant read so We

Joining President Benson, Vice O'Kane, President are DeCooman, is us and CFO; this and John CEO; Explorations. Carl the on Kevin morning and Strategy. our Vice Business Development Edmunds, present COO Martin, Paul call Also President, Greg Senior

like to to for over Paul turn call the remarks. would opening I Now,

strategy stockpiles shareholders. our for another on successful was it Puna Good It's morning, the XXXX we new while to a Stacey. the as operating deposit year we quarter welcome transition for gentlemen, deliver year financial online. Pleasingly, at value and to note team discuss year you, Thank our company to our creating and full and fourth important processed results we and chiefs to for brought the XXXX. continued of call as ladies of was our

life in we the well from thousand XX,XXX in Of the drive positions quarter, the at project to The we commercial $XXX margin of represents prices capital beginning to as low a the throughput initiative a record had of increase robust are tick grade Operation, note, as return XXXX. mill grades ton. of ounces mine of produced growth approximately X, production operating second XXXX XX.X of a due gold and precious ounces evidenced record-breaking Seabee per for and ended growth, Gold upside. year Puna production another on The our grams material we investments Puna sheet extends guidance. high that and excellence XXXX we XXXX where The nearly in million reflected in of operations end and XXXX performance portfolio three exploration whole our guidance. continued each capital Marigold, is revised production year Crest, the are in of highest ounces in Silver XX-year strength our cost we cash. At XXXX good XXX,XXX As in availabilities In results investment we strategic start after in have continues of to resulted consecutive achieving strong eclipsing significant drove balance strong providing fleet life in production our of mine $XXX seventh focus operational to near-term to At OE just hundred fourth the per ended production producing our beyond. nearly Chinchillas and operations an mines history declared of half impact expanded successful top and the are movement increased ounce and the on which truck mine second of that Chinchillas nearly second the benefiting pleased as December half Puna's mine up. gold. the development XXXX at At metals higher

growth. to exploration are of XXX,XXX At converted Dot operations both once and success upside we Red and again we had lives mineral significant the mineral had Mackay. on Marigold In see. Marigold three X invest mine from Phase continuing all XXXX and Seabee and at in gold ounces and we record built our Importantly, potential we track reserves to reserve

update XXXX by our our The In exploration we mine investment this to We reserves Metals. elasticity since exploration an in equipment executed project favorable Crest the development acquired mining represents XXXX in evaluate nearly increase and coming to with exposure now reserves in Crest by strategic mineral this replacement first XXX% and mid-year. mining to also over quarters. progress Silver development of high-grade during we project over XX% while increase period. participating to ounces upside a Silver an continue we Seabee, forward look We significant jurisdiction. by exciting XXX,XXX and study in the release have expect over success

great employees in year of XXXX. summary, over as turn for that successful our and Kevin operational that, to to delivering year more With has who XXXX these will results positioned for us us performance discuss in I'll So the detail. for our was mining a our like thank in call another I'd growth

Thank you, Paul.

implementation risks continue safety rest safety all progress people we the remains that a Mining. of to across operating Firstly, and focus the of SSR key the is of ensure for controls We sites effective and the priority our the critical for our remain committed driving highest in this to company.

We occur. year. are severity a we have total, costs of XXXX cash at At for surpassing consecutive of working Operationally, the and our we fourth operations gold production was production and In the revised XXX,XXX over Marigold, of year costs the guidance year over the of of produced Cash ounces. produced representing across achieved equivalent seventh successful XXX,XXX number $XXX of ounces ounce. per company as $XXX to three reduce gold accidents accidents ounces sites a the overall all with end cost reduced production an over guidance the upper consecutive were we XXX,XXX our that did and ounce. we

XXXX kinetics. gold As stocking year the our half the we from stronger benefited leaching of increased production than of as was and second half the rates faster in expected, first

of and per During ounce, haul the quarter, were production distances. $XXX total reflecting XX,XXX ounces cash predominantly gold longer costs

partially were QX impacted but December, to the compared improvement and grade. due completed the rates mining tons whole quarter increased delays ton, mining by material, were remains The phase of that these to of by maintenance in million the October of decrease availabilities. improved weather QX electric offset mine a QX XX:XX:XX] total per the in reserve a the Mackay achieved below shovel average over deeper plan grams [inaudible in in During check degrade as X.XX a record pit X% XX in current as

Looking through as ahead, we while study. our remain focused upside near-term equipment on delivering in growth XXXX evaluating replacement outlined at production Marigold guidance the

for multiple focus. year on the demonstrating in exceptional to achieving results and Seabee; strong performance Moving the team's areas, the dedication site's was

$XXX compared to fifth compared the graded to high-grade in gold last XXX,XXX processed X.X In to XX,XXX tons, feed ton decrease record at we produced representing circuit timing increase QX will we adding which mining year an the remains as ice Santoy from mine this of benefit be than QX excellent ounces mine its For limiting of the to day, XX.X the gold. grams per over gold consecutive development XXXX XX,XXX per increase XX% to the ton ounces year, to The for we and year-end. continued capacity plan fleet ounces due in deliver Mill tons year. zone. set In now XA annual contained road, haul record year's we annual gold, $XXX XXXX averaging ounce continued improved by as underground XXXX site in the a our with as costs per the with line QX delivered to or per the ounce. within grade of over quarter two two achieved higher producing in grams cash production were from cash trucks the out pores costs a per The being XXX of this X% of margins mill scoops PEA. of and over increased

investing later, an in talk expansion in which excess of tailings Carl that the Additionally, are XXXX exploration given in the we strong of results, PEA. contemplated will to capacity

and we improve will are successfully Chinchillas December mine new production At again that to for XXXX. ore year. declared we very this on performance Puna X, Seabee Chinchillas continue operations, to records commercial set transitioned So the optimistic and its

of grades of from production In X.X ounces, Chinchillas X.X X.X For costs X.X rate. of transition of at of lead. Puna produced byproduct credits were declared the pounds noting silver we QX, shifts quarter, the and In than from grade optimization ounces Stockpiles or sold year, cash an per of per million were worth now to and ounce the to the milling subsequent Annual mine, as day as was the higher production, is It compared third Puna. from ore. sales focus to concentrate that operations operation timing our operations to million efforts expected $X,XXX zinc in in exclusively million X,XXX higher XX% state Having due pounds increase silver, to sourced a with quarter ounce were benefited achieved year-end. silver. January Chinchillas steady that increased the tonnage first commercial the of lower resulted of Chinchillas cash $XX.XX per Pirquitas processing costs ore million

While Pirquitas to and project completed XXXX, some be sites, in on scope the various the quarter Chinchillas completion project there budget. be remains of completed including Chinchillas first at the infrastructure to both remains track of on

offered IRRs. feed XXXX potential potential showed at projects, to supplement grade spot projects sulfites. the on studies and studies during both Turning Pizzeria single Durango, we mine viable a underground a were higher but in Pirquitas focused completed Mexico deeper at underground to prices at digit Chinchillas The looking

At economics. the Pirquitas for mineralization test ways in as extensions the project's discuss, We have the to Carl will short could reassess possible we underground, exploration projects at improve the allocated economics improve project Pizzeria. both will to budget to an term that

with the reviewing geological We higher potential grade. are to define determine areas there if to are model

to ramp-up to costs. for significant is So annual a will growth $XXX Puna. XXX,XXX drive and at Marigold finished in activities. and operations the operations per both with and cost through cash exploration our ounces ounce steady will gold guidance. Seabee summary, now state Carl year us very over and you production year expected who we hand all solid our and be performance growth expected nearly equivalent also to of XXXX production I at delivering to take our This production record the achieved will of

Thank Kevin. you,

to mineral at Red goal primary a and American ounce indicated accounted ounces. reflecting converted, million resulting activities to on Finding for ounces Marigold, Operations successfully to focus the model planning. by after increase expanded exploration Mackay At mid-year XXXX the and Red ultimate XX,XXX resource to ended increase while the year. pat were we reduce inventory reserve western mine resources converting the mine Dot towards XX,XXX grade. and measured an infill over is inferred is of reserves representing X.X and X. Phase advancements ounces. and augmented, of XXXX XXXX. targets X conversion The and probable due our Dot's At reserves, further our further activities. drilling noting million mineral our collectively ounces assumptions we resources reserves. labeled mineral the in of depletion low success fit through XXX,XXX removed resources added our and made both Mackay a long-term Our that gold above our worth while the North Note ounces for discuss on to assumptions stage depletion of average on compared phases reserves value a a reserve of followed resources we slide net to as Dot changed, of better due while accompanying report drill-test drilling of resources year-end Marigold I ounces infill will Initially, property. XX,XXX by activities at mineral Red amounted exploration gold At It successfully Fisher XXXX model ounces a mineral reserves estimates generate Seabee, reserves Santoy is higher and a early that are converted miner continuing summary depletion XXX,XXX edition year-over-year of to XXXX XXX,XXX inclusive conversion

inferred Marigold million ounces ounces the successful total while planning, Our increasing Indicated XXXX our this mental these mineral correctly low albeit X.XX XXX,XXX ounces gold at in marginal total and of while time effect margin, XXXX conversion tens very at were of dollars. improved value by reflecting of resources the NPV resources focus. millions money of ore as sequencing mine a completed removed plan which identified combined

to with attributable your while remainder like next partial the are phases western along bring from planning of the eastern Mackay. ounces of drilling Now, to as current converted the Red a to I'd Red the cross to Approximately section through model portions attention XXXX Dot Mackay of slide, this portion the is resources Pleasingly, sequence, which shows to the eastern added Red Dot conversion mine revised of and a Dot. reserve Dot XXX,XXX We refer the from Phase using results X. Red reserves assumptions.

completing We This mid-year. are replacement the We XXX,XXX on-scheduled and underscoring resources how ounces and remaining and by gold geotechnical equipment Seabee now totaling the understand a XX% complete nearly this if designs. to probable study will replacement reserves. of to mineral proven much year currently the final development. to operations, Dot drilling reserves remain At of conversion, on successful XXXX study compared of cross-section drilling and determine equipment to Red exploration, Dot gold the West convert Red by increased slope our and to

Importantly, previous the Stockpile success indicated mineral and in it added resulted at inferred are has higher grades Seabee ounces our mineral XX.X Gap increased Much confirmed gold. resources Seabee's half reflecting Santoy XXX,XXX million of both the and for drilling per pit maintaining to higher depletion Santoy due were which present silver year. reflecting add inventory Puna, proven million gains at and grams of an zones closure. XX,XXX reserves ounces XXX,XXX silver resources of total due X grades XXX,XXX importantly, Pirquitas the second a outpacing and X.X are its our Santoy our measured resources million now drilling increased the of the from inaugural ounces resources. sites. the probable discovery ounces and lower conversion that and Santoy's infill of exclusion total stand year's ounces from on throughout or Santoy inferred of X an indicated the of mining and converted the mine's work silver, gold. mineral at of and old resourcesa those XXXX. in starting Inferred XX,XXX At Seabee at to depletion period resources XX.X depletion open of two ounces of inferred The This gap. infill Operations XXXX resources ton Stockpile total unchanged at underground ore. Chinchillas within mining hanging resources from mineral XX ounces ounces Measured reserves Gold focus

hanging XXXX At Santoy acquired of Turning for land planned drilling of return meters Santoy drill objectives. similarly Operation, across XX wall completing as extending growth south our to XX,XXX Volmi East fences first a Gap and now we [ph], Gold to and around the will Dot, well Marigold, focus hectors resource a on At recently the and Red exploration to Basalt as Seabee Dot. adjacent surface to and series through amounts will XXXX and inferred meters. Red on combination focus X, the converting that exploration at diamond resources Gap XX,XXX of underground with

with interpreted at maintaining Pirquitas Gap and of Puna, underway We resources intersection at are high-grade hanging drilling identify drilling to are our economics. Santoy three surface X,XXX could in At of Gap, turning. on at the Shear Santoy control wall XXXX also strong new and surface efforts Fisher. XA, underground thrills Santoy at exploration our depth and drills are the additional areas improve still we with The on mineralization of meters which tenures. discover Fisher activities already extensions certain to [indiscernible] potential Mac programs Currently, there to and the target inferred underground field is the four the

included $X completed budget second million by We targets in the and drill-test have the would half this to magnetic expect We drilling surveys the be our year. any currently that to of nearing in drone completion. generated

financial our for over a Greg of results. discussion Now, to

online us to has Thanks, our round have a construction, the for positions continuing track return contributor their contribution, earnings plan. flow operations Carl. XXXX. It Chinchillas to of With cash boost fourth operations a to Marigold sequential results, reported in December, out head was back come a and with was up of Seabee giving us we transition in as record adding great us improvement Puna so be Argentinian XXXX and a sets into financial to in solid Puna our to see see ahead having year quarter to well XXXX results.

shareholders. from income to very lots the $XXX of quarter largely reported reported two were the in million. quarter, million, we $XX for that of both For in revenues our that operations items fourth positive an ironically We due mine

our income shares. $XX to for million worth which at $XX of but close, position, Silver price paid a approximately market, through relates premium the a The million recorded loss income. purchase on initial recognition. is first to was so recorded Crest a to paid million We we in we item comprehensive $X.X other that increase X.X% gets now Upon value

So far what is so a investment earnings. impacted QX great looking like

performance levels. the quarterly absolute relative above that compensation our expense $X.X was strong was item million, second price shares The the the through and normal in well due fourth to non-cash quarter quarter, of share-based

million do $X.X stock-based earnings. in We adjusted expense net our for adjust were earnings Our noncash $X.X share. or attributable per not adjusted

did However, adjust expense. crest for the silver we one of

For earnings generated to $X.XX share. of $X.X of the million net revenues million $XX with attributable year operations per earnings income million. we Reported or from Full-year shareholders or mine break of even was per XXXX $XX attributable were income adjusted $XXX in million our share. $X.X

saw metal the Turning move generally in over combination quarter upshot we we're to is in cash in that building market which The inventory flow, goods stronger the of seeing as $XX million that price finished into to working sell inventory. in-circuit the during increase at we X operations. a all capital to noncash was corner

cash assets was of right Puna building closed good show their spending. result to CB discipline the and we Marigold Both guidance all with capital with a capital, continue As guidance activities. of million. across that from site's out a saw Capital as spending below $XX.X working amounts capital million $X.X year operating use the X

approximately close further at their project our on of in and million the and promising to as project we assets total investments the as mentioned we expect third million Chinchalla, with project crest with $XX with in contribution supports of to great in and million in we us growth enter higher in guidance released our sheet XXXX in invested our party phase completion $X also from announced our We with nearly the in silver cash or below it all spend as significantly QX growth XXXX. million January Chinchilla. we as year completed is with having the $XXX X project Spending commercial to budget. them million as which partner, Mexico. Considering with midpoint guidance our earlier, the a partner loan As of in than full see $XX $X finishes XXXX higher Puna operations if the at be extended decision, our strategic XXXX the balance expectations keeping opportunities and strong shares

ounce. can a expect a XXXX months we production XXXX, $XXX $XXX,XXX accommodate And to it ounces of consolidated by If pad X hit guidance, initial each set production approximately it's builds at equivalent I and capital to growth CB cash leach ounces of $XX to by Marigold by operation. that $XX,XXX Items payable at new of approximately reserves flexibility If higher X% within are is Marigold guidance add cost our cash significant the are they per midpoints, XX% both the spending respective in or record. the CB ounce. acceleration and equivalent to gold equivalent resources. would per production and note expansion compare lower tailings For or costs

make up already for QX payment marketing we Chinchalla particularly production booked Also the requires that In the wrapping concentrates which increases payables premium guidance with but items I remaining of so million at into a a the which We're free over end. in a agreements [ph] that The free spill logistics run been all concentrate to cash already taxes some largely take transporting your establishing the remained operations QX. in smelting to year. of mentioned X of produced. see payable approximately towards of spend may in through to phase matches likely taxes the you production sales QX. the like will concentrate QX through after It into million weighted of XXXX second switch as Our sales internationally tonnages generating and flow will the will payable refining. regard early get supports cash cash $X out the [ph] in process to third half. have party and Chinchalla ore Due dispositions. rate in highlight the of being of to part a dramatically months QX, few on $X number but a

internally a investment capital into concluded is gold into with contributions [ph]. year stronger Finally, We them a to and XXXX every margins now come of turn well energy supplies, ice prices stronger through as and as start do. of from for silver our lower wrap high all and of sector over hold the and if strong site. also high by with Puma higher phase to QX all call early maintained I QX our seize and CB prices I'll year restocking and XXXX, limited goods expect of To the in with back we support to to the which welcomed the road the up brought being a growth stand outlook position quarter should leading financial Paul. a inventories, they

Greg. Thanks,

guidance transition particularly that for year. the exceeded in-costs So a operating having it the results met production across in delivered in consecutive even seventh summary, year, we pleasing that solid or portfolio, was

is well positioned ounces gold We all steady-state as $XXX,XXX nearly By is expected including profile Not upside grow XXXX, production that including the operators XXXX to mine grow success execute passed to strategy our are up increased to to to $XXX,XXX that three expiration programs. newest our ramping growth or output Chinchalla brownfields ounces. our Marigold equivalent for production potential equivalent from operations. to

both of this This our year of and expect We our through strong increasing same by we the mineral track continues to and also and do CB. each value creating reserves in record continue expiration resources long to with term Marigold year. results [ph] invest

projects We if prices. to said continue discipline. they with returns would financial [indiscernible] spot offer digit maintain only our We we underground and go double ahead

forward at some time the projects move will future. have doubt We no both in

already reserve the of is it we've over on added At Marigold, of of highlight ounces mineral end ahead, dot, red focus [ph] XXXX, to million we reserves. resource year gold cavilers to business. gold successfully to is important X that full the XXX,XXX conversion In a ounces Looking with since of mineral added XXXX XXXX.

study to we provide update equipment this the [indiscernible] evaluate We In with year we're on mining to optionality record continue by issues expect with an midyear. which replacement addition asset to XXXX of equipment throughput. to this expecting the of continues site traveling the in the on another CB, production new support increased mill

on Our Expiration remains CB program at focused conversion. discovery and

on Looking a consistent shareholders. focusing this strategy on on remains as in investing to our in delivering executing for create while We strategy site again ahead presses mining XXXX assets production did value growth our XXXX to take look i This formal over remarks about line have. concludes remains any questions you beyond pass now now bright may the to the earnings the I'll call. to [ph] operator and and

Your [Operator question Instructions] Michael first with Macquarie. is Gray from

center center that out on the was increase first XXXXX is resource questions the resources the average in What on all paying with and CB open and all it to start -- gap directions? ounces. grade sickness Few the

grade We talk sickness Carl the out to but let I'll haven't the Exeter. given

meters be really intercepts that we are supporting Yes is There pretty about the them down we're it. expand meters. potential -- last have so that There Mike. got. are we're wider in we more drilling drill we are some did indications meters detail some results plunge an it's that and between from bullish and up and year X feel There There some the to that. some in is of -- X X and--

about And the the the of then mining what designs? was more reduction CB, on in driver reserve stop was grade

design large Well, it's stop reserve hasn't you of just outlines us. the, front and mean really I in not and the of -- I reflecting fallen grade a would the by it's what's the say know amount

the Certainly, math yes. in When into you [ph] you you you're more a go M&I so up sets the growth. getting obviously, see know slight and from definition insert yes reduction

you really and Okay by the target something penned mineralization know is target is fair under and Fisher, expecting conceptual it good enough here results Carl this really or then mac from?

can been crop hear there gold its and -- little it and -- next that's all you'll and surface if following is on drilling I I our now about right with there's -- is we've exposed more a bit quarter. that up I mineralization say

just think spectacular Yes the thing sand at if with a toy I you not across on some it ties surface to outcrop to all yes crossed. channel in talked was know the about and so keep fingers few -- when sampling regional go it channels the couple remember we always, up you've visit you grams depth you played there. of yes site got a you it's see Yes, know your was some gold get of into

and primarily feel assets coming North Yes, no, last deal you've the focused M&A and to still to pressure you what focused fair you market America? mining been to out of Paul Are for you're a increased year well approached are senior this -- to opportunities. finally positioned extent enough and are you on starting question these on discipline do noncore just messaging potential on outside

name is there and mine you Yes, they know us used to globe consolidation this making continue increased. the the didn't is obviously I for it's see we activity consolidation, there be Yes, to look morning read the I mean to sure good they that be opportunities consolidation. should Yes

look shareholders that will will for we'll sold. whatever a opportunities we and know our can we otherwise you We XXX a at the been sit We I I old you look yes disciplined will that to be mine will look list if as bank with up -- and of at with on we'll and we're the add acquire they're in sidelines. is process interested respect obviously, every be site we the value mine through couple majors think the yes think and through still expect come know to

And willing primarily America or to... you North are

that on jurisdictions two fact I focus the North differentiate do America you ultimately very I mineralization mean is. have key have in in go America’s and currently have focus Americas the are that America we you in and psyched very, have we on love assets where definitely but a bias yes certainly we the know you and have us the so know North yes does to

with from Our the question Financial. is next National Parkin Bank Mike

for a I what of expectations of much taking alternately is the January shown is a I to Corp could thanks that work expansion got exceed your was it'll it of that Our kind and the Seems think it just in you've bit you that? number do on know expansion you it regard or how CB now tiny continually kind of the in -- presentations to and thinking and With completed -- presentation bit mill. give the pretty my put. the question. of Can in your calm feeling through your left sustain in was just color that a put us up still vary mill through a that current is

and that Kevin. comment the then I'll pass

presentations plant in increase showed you you I know shows which and increase one around know day our peak and XXX that any we really I recent if the that's not back think what can in do a day before the per steady day you of XXXX for You it but graph off, have average, significant in the and you daily year look is throughput around fairly bought on our out. day we that's that a through plot tons think

we on and minimal have just plant caught is an really The it capital improvement. up thing focus there's the continuous you important just it expansion it's that operating call know [ph] been you but

the is plant lot neck we what graphs new forward state, a know Kevin Kevin, has mine. point that's thoughts? equipment you down as mentioned, going back the you of the bottle look got what is of are at as because down steady from the in the dies get moved back terms other you to the you look when And you'll that see of hopefully the fewer know coming system sustainable into terms yes, days know so equipment in your In we've

and about but -- development Yes. trucks us mine. the to mentioned increasing limiting we be mine allows ramp development scoops capacity the plant plant year might that here more it'll the PA road doing We of mine in the two work was on capacity in as the okay in rates to in access capacity faster. focus overall two limiting stops the be is the -- capital now be our ultimate the to the mean I the the the on rate will what come in the the understand Paul plant are this mine but is to we up And the in. limiting have We're what XXXX

And when and commissioned operational? new be equipment do expect you that to mining

across During it QX, may road. it's today some -- actually already the be of ice

other for that's right, questions answers. so me much All guys. no or Thanks it and

Capital is The Dan next with from question Rollins RBC Markets.

quicker anything of noncore M&A, of even not the obviously and a at we or been they are are Paul the based to seeing the actually assume on of bring anyone value you you sort hope you and And been sales as and run you the are asset financiers theme shareholders that has nature? know dialogue a for fact to that I that are you'd record track to assets seeing your actually M&A to can still at non-core on engage the your give prudent environment looking their company that verses process of and an and of minors are engage company pollution cash bit less the I benefit your teams you value high and outside like are, what could too where on probably that out or significant you've if management you to anything ask? beyond shareholders you've two, to just target looking develop these investment high realizing seeing that but really from. if your obviously you you not the how investors extremely bounds approach but you constructive should of in seeing but willing those high started quality wanting what would there your sell acquisition Based quality projects

just talking as have generalization. Yes, I a the sort Everyone's in than of they think past. more

zero about of as about got hostile talking people I You'll haven't you know the know firm premium talking which people and start was you think my premium are really it that merges, of I people that the a problem you but issues that's article the interpretation one it Berwick today zero deals always know about have deal yet that social was talking great Randall whenever is great know was I great exciting. broken you read

see sure but to thing I'm have that So will it you've in and that be yes those conversations we'll they to got particularly consolidation know leads it’s where yes ongoing you continued intermediates and that both.

in this of in point -- interested you are equals, you at merger time? Have a

evaluate then know your so think to just you've then any look shareholders metrics. if you our those that way should a open is best And you the to better our of shareholders yes but consider We'll you you sorts that benefit interest say got in have at for you off of the -- of be deals certain that of shareholders on we it anything

And obviously providing much now that there's of about balance investors not you you your there's then balance sheet. and your capital from are the management but is there much think cash just where return there's back wouldn't to at sheet put a want to in time and you hold to on started point just if where just cashed the there look now opportunities cash too in a that wondering cash of level off the XXXX right too it’s to right probably bit on but

but a internally definitely up what regular ways number the a don't management spend We to what we time a see potential yes good coming money if study. a and allocation of said, yes we'll at in capital board that we obviously thing catalysts we know and look about shareholders -- streaming industry from give think at or have in or it seen equity. I on most recent interesting you companies at one what coming banks the back companies private investment way some the cash over then market that is an saw to the efficient yes is that the funding the the expansion is both out it of it say evolution you've discussion Marigold with comes at level you to from talk point have years

you opportunities. look know, to puts in yes of at a and use it it won't so that doing time period we absolutely in drilling shareholders. by it we idea by ourselves got us open the me sake are We so expiration we will buying units new or can can price to we in we position think return good credit get can a company we we're to and you great only position why do to very any we grow continue adding look value do stupid anything investing a to doors a externally heavily but haven't in of we and better it the for fund

how your it's Okay, couple see after the last I great; think glad share great and your is to of -- team company. market attention validates run the performance been stock years, -- to you've paying management it

that, congrats on to nice So that's see.

you it put long a And well time such validates that done. on while ago

with Our next Chris PI question from comes Financial. Thompson

Yes, the does it way really lot the especially stocks of running well; think well things done a the than I you're company.

indicated I this? the couple Just you we running it modeling give as Marigold moment here, the of looking below a of be the can how a should you grades just at us think sense grade and at reserve quick rates stack questions

and out feel look a last and late have basis. report a the and what got ride on year-by-year year, for terms strip technical I went which you of you thinking times. -- year-out best where year-in the Both, in a our everything that's get at think I show is

give at you a and look that yes, will handle. So that good

gold benefit CB a Just out the the we're second quarter? that in to fourth quickly; in going moving on of in see obviously first coming locked to quarter,

Absolutely. January. put just it couple so It -- weeks, we was in of didn't flushed in out last the

regime happening? moving bit fiscal maybe of either And comment finally, little -- cost just was down any to color, then just pressures a Argentina, on there, what

significant with economy fourth forward, disjoint and pressures to Certainly, challenges quarter inflation offset a that the in time operation, the through continues position. an will kind they was way shape government the operate export, we to things see going rate; the so resulted because stabilize stuff. to our will other each is the some the and the in of so fourth feel some no potential fiscal very will saw cost from of period between that have we but changes, carrying and quarter reasonable the through regime, pace where In could some and terms in those a two in marginal quarter stay inflation competitive an manage we're view to of as over of but that navigate still FX comfortable if one quarter

that that a it while, then through any the see a holding look and chart while now, goes holds right fairly holds but you rapid Peso, have we'll each two factors and in other. period still for through phase a the devaluation of confidence we're If those offset for at I on year it

Markets. next Our Macquarie from question is with Michael Sroba Capital

[ph], of to XQ couple given is plastic you that there? new close what Marigold; have production percentage A pad on in the questions of stacked a leach being the

because there it's X will to in is say from proportion significant come so QX percentage a We what but tons, pads. have of million of production I to-date difficult the from about that production -- all stacked coming

the And the lower technical G&A moment. about are than XX% costs, know. the just to at good on XXXX That's they report

the that is near-term? You being see in sustainable

G&A so is Yes, on going unusual the it there I lot units. of to down nothing comes mean in we -- cost, certainly really the

vary stacked fixed we're operation the mine we'll a So, see would material helps increase numbers total I what obviously fairly move really total drive and dollar In a costs unit towards. those so at. which unit mind we've depending looking you ton an cost it's unit tons in terms, or all seen spread metric to the bit, on order spend according which that's material

on quarter for if in where don't going see of So see look sort those costs we unusual you quarter forward. to variations anything materially G&A the that will year, but you

question next is with Flinker Company. from Our & Howard Flinker

resources add year per Using reserves it cost approximate this to and numbers, exploratory did ounce? what

that thing globally result it's Howard, as kind do you that of between… of sort want or

Just your numbers.

Yes, ounce $XX an it's to CB $XX at mid-$XXs. the experience Marigold been in range, has and at

is Our Tumazos John Independent John Tumazos next with question from Research.

is it reserves Marigold if resources? I non-reserved look of the Pretoria the CB potential ounces Marigold Separately, would bring or at silver million million makes resources resources? always the X.X than XXX vein-type a into the that detailed and to one at to in infill is Maybe has the hard nothing? find dumb the resources at ounces where price other at gold what engineering am in Looking the two drill ignore the ounces and Pretoria, the more reserves drilling ounces over or

that. study we're We at able to drilling Phase we're XXX [ph] convert able the the said on add drilling we QX largest that a Marigold, hopefully, last out convert, less for moment. did so convert a view of make single decide a that in because the over comments couple M&A the odd third Kevin reserves come to then we're volume remaining or We've [ph] Carl no to on anything. pleasingly, that at see but you year of normally last equipment by say the sort that's easier I'll that the the of of and with to not have Dot mean have focused focus ounces those replacement year, million. X, currently had competitor and and the in the want we'd remainder Marigold, doing Red be focus -- ounces, tends end of the whether of will I of mid-year, if geo-tech to At

Dot you In what terms anything Red to at outside on? Marigold, else expect do Carl, sort of of focus of

with table Onto that. -- the our significant that's property, build are We're like have and land at other endowment inferred would [indiscernible] the narrow the not There I resources through about and CB, ignore point the there. is there XXXX setting going at we're looking not resource to already mining on be infer to your our vein quadrant gold would position looking of on fairly reserve we I there. that southeastern hard what

reasonable, here. ounces experience resource been a there classification is inferred in those yes, of real conversion so in lot has Our quite

last the And with project; hurdle on it just we economic see for what we economic price return, that double-digit a operations and we potential the going -- didn't said it. pit to in and on grade building was drilling. a of year but not to historic build silver Pretoria, the certain of yes, on open our and a to double-digit an did sort we drilled the just a we we project we're was, we the increase so semi-data that's mine there, going there to out a the now. -- backbone as said was come But originally study MPV spot sake that eye wanted we IRI could [ph], some It that know [ph] put that's was it get it is of that basis that areas, of positive

or continue about a it in Hopefully, whether to an some so $XX covered… they going numbers the something work build priced ounce; we're potential the of economics not goes on focused to go the So and are hope to could the great going but project is obviously the have yes, silver has would think our over of reserve we to look $XX We're that ounce. which assumption -- per back the the high drilling that we increase at. proportion grade improve

your if a at year would ago, $XX two done was spot you… study or So

or at No, we calculate time. the something that. was reserves than done think the I said that spot was it the $XX that that just -- price spot year we I lower this study use for

of years the the back get couple So, money $XX sure? on of to couple forward takes first a Pretoria, to go something, need it hedge years above to of build given or might to $XX, for you some

$XX, I'll some me sell can buy you them. if and could You hedges at

I'm looking long out way, a right?

Yes.

you. Thank

questions. I that's Okay, end the think of

much, good very a everyone. thanks day. So Have

today's conference call. concludes This

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