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SSR Mining (SSRM)

Participants
Alex Hunchak Director, Corporate Development & IR
Rodney Antal President, CEO & Director
Alison White EVP & CFO
Stewart Beckman EVP & COO
Cosmos Chiu CIBC Capital Markets
Ovais Habib Scotiabank
Michael Parkin National Bank Financial
Steven Green TD Securities
Levi Spry UBS
Call transcript
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Operator

Hello, everyone, and welcome to SSR Mining's First Quarter 2022 Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining.

Alex Hunchak

Thank you, operator, and hello, everyone. Thank you for joining SSR Mining's first quarter 2022 conference call, during which we will provide an update on our business and a review of our financial performance.

consolidated have XXXX accordance presented quarter U.S. with first financial been statements in Our GAAP. have on been ASX statements financial These filed also on and EDGAR, available our website. are the SEDAR, webcast, call, is information our access in this relating webcast news the will call. accompany To to an online find and there the release to our you Please U.S. all discussed the during figures that note call in are otherwise indicated. unless dollars, forward-looking will include statements. discussion Today's

relevant documents. So in please, read the the disclosures

CFO; President us Stew on today call CEO; Beckman, and Joining White, are Rod COO. and Alison Antal, the

I will call the turn his opening over for Now, to remarks. Rod

Rodney Antal

Thanks, joining Alex, and hello today. to everyone, and thanks us for

flow dividend further high-yielding we of within maintaining across At The all generation, our increased SEC returns the the extra year, make refresh. support not assets, want This first our goals outlined to XXXX start in efforts returns A exploration X-year released to report efforts decade. in terrific our reinforcing our transition technical a that production in excess to enabling our material you will reports a production our by number SSR SEC and of guidance. going mineral remainder of a the maintaining for projects capital into at for business free I opportunity but to and outlook base stable guidance, ongoing this X-year commitment. capital it at of recognize clear XX%, transition of supported production of cash function increase pathway And forward. a Already technical released reserves excellent for did our by as platform result to smooth a positive XX%. quarter we we of an this filer, long-term the led a to year, X solid business the take thank XXX,XXX inaugural ounces becoming and Those our only their the least significant an then filer. annually all the milestones, consider everyone and featured reports not also when which producing for reinvestment

Gold our project. we addition, Sustainability announced Pitarrilla approval IRR to the ESG XXXX acquisition. a the received And And our the we development we In closed We Definitely, impressive subsequent the sale progress list through Board of accretive XX% quarter, the Taiga of quarter, PFS during report. finally, to short CX time. have to period an released in achievements of project and stage.

cost to our outperformance helped XXX,XXX line of into really ounces results. full start. $X,XXX impacts commentary an Seabee, encountered an strong diving fuel from over note weighted, was is we results through Now, record of track sustaining sustaining of we're Coupled guidance year offset year all-in all-in to $XXX again quarter, sustaining XXX,XXX commitments. Overall, equivalent Gold to cost respect previous operating some production at full delivering a our $X,XXX to gold against of second the our remain Seabee's $X,XXX of inflationary our on with XXX,XXX gold deliver ounce. particularly with which consumables. that to we proud during included outperformance continued with at off and of our cost positioned well half ounce, of our at to of of an I'm per once a an ounces expectations. all-in produced ounce. in per These record ounces XX,XXX our quarter production the

The new ESG We achievements business. the a company. initiatives in performance it during XXXX on and some and this success number released priorities. the Moving and SSR our I ESG highlight report been X. annual and value core slide, underpins as of highlighted focus to of on our fourth And Sustainability for to a has April, ESG for long Slide firmly our is our and want of which Mining

will support this seek expected things, a water establish strategy full science-based operating complete third-party a complete other our closure amongst to our emissions post-mining the integrated action systems forward. plan our footprint also ensure year. reduce of for developing to we we In XXXX, EHS&S management rollout reviews as continually Furthermore, stakeholders net positive efforts we commitment and by are to assets of implementation all zero across future going our with environmental our will stewardship XXXX. we During XXXX, progressed greenhouse a gas to

of to a shareholders a and peer our the reports. So, This we're done of peer-leading Slide In to as metrics flow top portfolio On way buyback programs million enjoyed from long outcome new improvement increase all to and/or Hangingwall. outperformance the key X.X and we technical we being our material reports #X. value a announced prior consolidated strong I'll operating and to The across annually and base we the impressive group dividend returns. our have or free ounces exploration increases. XX% continued I take moving like performance well recently operational to And share the of 'XX, an growth against have evaluate yield Gap translated strategies on capital dividend increased cash both technical production as result. Seabee's $X.XX provides Subsequently, and reserve have we development by exceeding further includes success. and across our mentioned, returns Ardich of performance, impressive moment the creation highlight through realized a project initiatives, our delivered XX%, at of satisfied. that feel further

translated through projects growth exploration number of new across outperformance a than of XX% the by and the on has of operation more our the into operational exciting last XX performance we our months. various targets. and over peers GDX value directly The number price both creation a moving have each continues stages development and outperformed along share have We as

of in slide the some to on the our continue. next catalyst-rich speak With fully expect catalysts some the achievements year of I'll the did, we key as year-to-date. well we to this as

a have As we XXXX, positive delivering noted, a start of to multitude had milestones. busy

management Looking impacts on books our that focus fortunate to the weaknesses is operations. aimed ahead, supply moment limiting don't projects material to of our be It disruptions including initiatives chain at chain have inflation, excellence, as global and we the at supply prime capital most any on seem we the continue on large operational increases. cost they to

in aware, feature our you that are terms are industry. best in the of costs As capital of relatively modest projects some returns the capital

in progress And production and exploration could to to that CapEx adjusted the continued continued in ounces of number production with Ardich this a million development grow million released X.X production, earlier first in We success. featured CDMPXX year, gold Ardich towards XXXX. $XX

of We production into CapEx CX another for in study where at $XXX million a also stage, the approximately project the have approved highlighted million this beginning to ounces CDMP X to move XXXX. gold PFS

few and EPS relevant gold, the per detail. for sustaining we as first flow royalty production inaugural slide XXX,XXX strong in ounces quarter -- at X-year all-in A above Operationally, cash an And that were announced Now, a just and are to $X.XX the results of moving quarter production impacted payments dividend the free increased to flow production consider and $XX payments. guidance, of a Financially, flows stable of previously cash with of delivered cash adjusted ounce. XXX,XXX our our our by by delivered production showcasing on $XX and quarter the XX%. operating showcasing more $X,XXX guided, Despite of highlights quarter. next in cost tax the quarter. another million and million. quarterly stable that, we ounces first timing We increased of

ability also maintain with to a highlight long-term our the year a remainder the platform demonstrating of ounce XXX,XXX We our technical reports, baseline the for decade. production updated

acquisition $XXX total last Pitarrilla, to months. to assets consideration our rationalization continued hectares. portfolio exploration in over X the We platform over realizing Saskatchewan expands then million sale our And positive the and quarter, of Taiga to with the which closed at of we Gold, XXX,XXX finally, non-core subsequent with the now

moving on Slide X. So, to

our As execution. continue and XXXX, growth it worth of track we record highlighting impressive through is

with our our half will first performance as guidance remain in are positive on host quarter X or start to meet again momentum noted, this the Overall, of production the following solid and second commitments. against position remain As of year a improves, track year great weighted a we on our and year. quarter, news full in exceed expect well we especially Marigold's back

over with to call turn discuss So going performance in to the who's #X. Alison, financial I'm on starting Slide that, our to going detail,

Alison White

XXX,XXX quarter. and Thanks, we Rod, everyone. sales or were $X.XX by both our prices. million, this ounces, the supported to per $XX gold and the back half Gold income Puna, and in of million weighted had from Attributable end were hello, first In production quarter nearly a for expectations is guidance. as commodity nearly ounces for with higher sales quarter with to Revenue of results. a was was XXXX financial diluted $XX silver start as $X.XX equivalent XXX,XXX see net by million share adjusted attributable was off supported quarter, profile at XXXX our per net produced $XXX income good divert diluted operating sales share. or strong first executed we our equivalent line communicated I'm for happy

quarter and royalty previously cash quarter, by $XX impacted of $XX payments flow and and the operating were free increased during noted cash First million of tax flow both and timing million as expected.

on free a pressures flow cash and anticipate have inflationary across keeping business. trust weighted We eyes that the continue to profile second in our half are

that offset a seeing We've is While the talked how in each we other helped improvement XX% cost, to inflationary inflation escalation. Those offset we additional by maintained are we headwinds. also acknowledge tended the have price globe. headwinds as business. and about experiencing help some devaluation programs are to in improvement and pressures offset XX%, We've inflation across causing thus the now about to cost previously our efforts for to thus communicated of us continue devaluation pressures outpacing previously that what continuous pervasive low earnest we and have far

pressure we that we Given we'll year headwind be mitigate, as and this to this we're for us continue cost parts in any diesel, that rising acknowledge in future. anticipate will far, changes space work categories aggressively thus will the trend the of will reagents costs where and experiencing progresses. this continue we update and to is the that that Again, most proactively are consumable a on something the

on chart I'd the We attributable at definition those and for X, of reported our income We earlier quarter. minor relatively with attributable net provide right are SSR Admittedly, net of like of the $X.XX in share. to was were exclude that diluted side to items items ongoing integration $X.XX in the that operations Each impacts associated arrive and share, Slide Mining's On with slide. on the the the some is adjusted this of not per right then of share. impacts per this specific calculated loss transaction had income adjustments $X.XX waterfall from the of per stemming muted start based reflective private share per and company's on our of adjustments after-tax commentary in diluted is outlined transaction the adjusted to completed status. earnings earnings year foreign issuer that attributable the company's of our SEC the that were the expenses make

attributable foreign adjustment marketable here impacts in minor a notable an of most adjustment no fair for for And are the our income dollar Copler. minor value in adjusted The peso the exchange included item as involves at and that Additional longer against devalued the portfolio. mark-to-market our the is discussion the for Turkish Argentinian quarter. U.S. lira the net security included finally,

an profile noted cost operating longer we this adjusting February, at now Copler. and item in As into incorporated no are that is we the is for

SSR's of cash position. that Turning to with cash to would position is nearly Slide we of maintained in I equivalent respect the allocation company over a million. about $X while end mind, cash net With quarter, reiterate the business. $XXX talk balance financial capital like to billion, At the within priorities XX, can our cash strong and the

growth total return growth, will reinvest high Ardich approximately CX through and million for foremost, continue we to our in projects, exceptionally including First which capital $XXX and XXXX. account in will

are committed in to volatility sheet payments and gold weather are we in commodity of in all downturn funded the robust capital commitments, environment price. maintaining debt even dividend a ensure the requirements to potential our servicing event Next, the and a balance of fully price base

another we we continue capital Third, we nearly will our returns, evidenced our starting returns free and we with this base the initiatives, million, to to for increase. $XXX And continue annually, committed year, over share further will approach ensuring supplemental XXXX. disciplined XX% to by through dividend and/or strong our including buyback NCIB update, returned $X.XX appropriately pass as Most by to base XX. shareholders to XXXX, evaluate in increased operational our remain these and our it Already this, in Slide have our company's returns on we cash flow program to I'll reflect dividend a importantly, Stew generation. be in an to dividend while

Stewart Beckman

Alison. Thanks,

of I'll all talked our start are Rod and impacting occurred After injury Molina's we in usual, call, increase about with incident As the the load addressing. the which total parts at Puna low record QX. business. XXXX XXXX, had business in of from this rate that are a recordable we frequency rocked arising passing EHS&S. fatality QX X.XX, TRIFR, At last in of an actions

teams, sustainability our report. are ESG communities performance. has to the and Our and foundational ongoing continued, discussed and in we environment release care updated core of are the and the all business and of Rod for our values Safety fundamental believe also already improvement programs elements

dive opportunity each see we with on is comment and that I through of quarterly from across production the results XX. deliver coupled is just growth I'd The mine in portfolio baseline clear XXX,XXX ounces platform This foundation, Before last Slide message baseline on. which that like the annually the asset, gold establish solid progressed a this abundant profile build production our production to the being key where reports, targets plus to we that expect means the on equivalent details of XXXX. consolidated into you plans quarter's see a this for technical to

sulfide we a before, had production start very records and active Copler. year to the with from the Seabee throughput mentioned at As

quarters We XXX,XXX gold at at big remain the second half We things ounces mines results full of expect $X,XXX While quarter Marigold the in XXX,XXX of the second our equivalent track of that are second per softer and year that which particularly the will for to we on somewhat were the remains Puna, and guidance fourth much AISC halves. ounce, to due for both demonstrate at equivalent an to Marigold. year, $X,XXX gold to weighted expectations stronger control. manage

improvement all so on focused are includes operational of both And the cost which and control. excellence, sites productivity

our some and budgets Some offset built XXXX, the improvements plans were inflationary of the into for of helping pressures. to

started deal of position the XX, supply production. can Copler. production, and are Our but project, this on negative the momentum and now Please is a jump which talk is tonnes we sulfide whole delivered a and impact able we about be to reconciliation Slide and chain The in flotation industry chain the has Localized started Copler plant supply in to another gaining XXXX, better record that ramp up XXX,XXX to circuit expect transformation to world. improve. put us with quarterly or issues the to having throughput plaguing

Kudos nasty April. go to must major with scheduled phased schedule The of on this of autoclave were the started with shutdown first Copler surprises. for and successfully Our achievement. no Xst within the the completed shutdown re-bricking subsequent courses, was quarter to

overall receipt the following seeing help sulfide plant pressures us capacity consumption, flow very to permits advantage the and in turn offset ramp-up throughput. some with reduce final plant December. The will of to late in the to It increase are plant As consumables. reagent in the helps which we inflationary respect also recall, of began the allows flotation of take late the you plant operating

work first at progress development in towards continue We gold Ardich we production as XXXX.

discovery Since last million of $XX the spent a report, X.X XXXX, production for technical development into more the total track and on Permitting about pit Ardich initial an is to of remains CDMP, just at the than cost spend an EIA an it the $XX.X of in for on the highlighted path As of $X drilling of with for translating capital we critical received expected ounce. million exploration is gold being Ardich the impressive contribute Ardich, ounces million. area. start

to through the low towards approximately item other This the of quarter, continues target million first Study return, of our XXXX. to Marigold. for I'll Move in XX, the another IRR expect to Pre-Feasibility on the company. CX level. project for capital high deliver and the intensity were impressive Copler the note X is seek $XXX is CX The project brownfield to is approved XX%. continued Mine Board talk proceed and and Slide production of ounces to of production for We CX an capital progress million it about to project,

Marigold higher the results a the guided bores the guidance. back from XXXX, along being scheduling water gold high-grade Work drill quarter. year, Drawdown dewatering expected, will inventory, with the pits had and of about final coming slow stacked leach. caused from weighted. start with of increase placements, grade within year the in table quarterly This heap the provide are ore along inventory months. would As strong leach half the that ore the a the finish later rates ounces ounces to with us to soft and had as north production kinetics production continued of Timing in at in the We Mackay mine heap XX,XXX planned. pit drawdown with landing XX,XXX to with be ores Marigold the access the leach to to in driving equip

of We to which Marigold's this on up taking we Marigold a out the through Master ramped framed more the District are during the building Plan. quarter. future, approach Work many structured components

the reserves ongoing for report We updated steps plans expect resource to communicate And end -- this convert of our an XXXX, issue Marigold. and in the technical reserve next development of year. the ounces at into we'll to in

grade to for XX,XXX close definition to quarter exploration than Canyon at more the The in Trenton aggressive development number exploration drilling in are drills as Millennium, of deposits. programs New high with at targeting the exploration at concurrently of drilled course, process to drilling and team well and meters in we the the pathway resource Buffalo as resource existing quarter ore X continued oxide Marigold Our pits, define of additional and is Valley these X. best from the increasing where

We them we consolidate as exciting are share some will results we and programs. the seeing

the rates am we'll Seabee performance, Slide times tonne. exploration talk and gold so had the stockpile really plant of record Santoy. haulage XX, with mill to grams that starting sits driven move day. Seabee's ramping in We mill quarter. the quarterly road as supports about programs and that per at upside Now, delivered improved led vigor. exceptionally We nearly The to improvement underground down from mine pleased grades with by plus Seabee believe to at the tonnes made in were reinforces of Seabee. Seabee site XXX,XXX mine I performance we're Seabee's between also there production recoveries. at will to XX Shane processed in which a at potential drills high of operational are production off also in assumptions is Seabee just the going be Seabee's a surface some further obviously slow that the prospect of SKXXXX is ounce high ensure X,XXX this continuous operational mine We chasing that X record a grades have and forward. to a ended quarter base reflected producer guide, This and very that up. The currently Santoy optimal targets the Exploration Shane modest QX front X drills, ore we Mine. drilling the

budgeted full remainder closer grades for to the return year of expect Seabee XXXX. We will

the And Seabee. to However, end the XXXX just now completed is of final to extension chamber a to I went guidance. define road upper now restocking extremely and some further mine just tracking of we the finish, ice high-grade before Seabee well. note XXXX, drilling We've which on and and exploration have an are zone. for the production developed its ore try

So, we're year. set for the rest of the

cooperated a of spares to to also the and commence drilling new Copler our drilling Black Basin our that The drill that campaign exploration other supporting we year And chains. Slide from by as the at to XX, access will also progressing I've exacerbated for wanted growth limited Copper I ounces of And our In of of tonnes potential as turn it we're by baseline increases with mine of to to jump the well fantastic progressed impacted first mine the around all rains, to XX. project and has inventories quarter. the chain per in has to X,XXX during improvement to supply us mitigate the forcing Puna main improve, in The work. Copler the remains At about Hill to operational as silver south reduce year. are target [indiscernible] was the continue further noted. and impact over and highlight in in process heavy our were supply grade Puna. we I'll the we the potential pit, culture the later slower target reach the the let's its Slide in the assets, Americas, further of about mine lower to with guidance. that weather for conversion program talk we're the ore respect region. this continuous the track Now, and resource which drilling transformation disruptions In full in production been new on continued day. as operating discrete X.X challenges second inflation Puna have Ardich sites at XX, of quarter, produced jump drilling peso. pits, new initiatives questions, Turkey, quarter. Great summer at well at we Marigold, X,XXX some greenfield claims and better has the and in operation team higher months, in in the challenges summer the building improving staking level on of Please before as and of at their new grade quarter the scheduled Sea preparing seeing hectares million lastly, a ores to On to of exploration metrics some Nevada start been included I Argentinian risk already to continues consumables all bottom

some completed the Shane, and Nevada the start of maiden Saskatchewan. at of also at Santoy, to year. We our with Hangingwall, interesting to at define West our Santoy update and Seabee, geochemistry also since of the for progressed also geos which development some technical into Porky report leases Hangingwall programs the the the we of XXXX. the Hangingwall, results resource course, Toy resource programs the project the program the complete We while aim follow-up. continues work Seabee in Joker At in Gap soil early Amisk drilling for at in Santoy mineral NT to completed incorporate an a exploration drilling we'll team The exploration winter Green

prospective We results Puna, At preparing to The exploration identified targets testing team of to program some targets a program the the are compiled. will highly QA/QC hiatus. pretty accelerate the excited over we months. Chinchillas and testing last we've second share they've is the the just restart after at to added when are completed the of few the a long analysis in of and drill drill

close. to in record concurrently team very of set you I'm operating teams. more mines. the diverse proven on and successfully than dealing have ambitious is Thank constructing growth and very the and the operating This real Rodney operations with of plans. XXXX to challenges deliver depth. development much, our of back and with to a contemporary capable a defining, few proud one Finally, They skill exploring, companies of We're with track

Rodney Antal

and Stew, Thanks, Alison. thanks, Great.

facing lot certainly the going particularly a in and heard, you've remain year, industry. on, to on are the a we've there's great to of the track that light external challenges As of full had catalysts start production and from our and guidance potentially growth including number the positive expanded and updates initiatives portfolio. across ahead, the our exploration advancement of cost a programs year We have deliver key

and the So very to over operator with much. the hand you that, questions I'm for answers. Thank to call going

Operator

[Operator Instructions].

first is Cosmos The Chiu from question CIBC. with

Cosmos Chiu

Stew, Alison off XXXX. very a for good congrats start very first good Seabee. on on Rod, Maybe and presentation. Thanks, And a to

X I still tonne very But grade Stew, XXXX. mentioned, ask head closer it have mentioned, the to back question. you remainder QX appreciate for you high, very expect as per down good. I of to to As to you go the was gram

in zone QX it. drilling this hit last high-grade starting XXXX You've you year, were

I Clearly, question point the think continuation of as sure that at terms it's that in in a weren't I asked grades. exceeded time well of your high time. And point at you in expectations.

drilling, you geological do these now higher of done ultimately, you've that better can have understanding What grades? a this structures? some the drove more Now of And continue?

Stewart Beckman

Okay.

So, I'll a high down. at then start and drill I'll level,

X. X we did So, we Santoy when the see X, off ounces X material you deplete the talk did we from believe, as latter tail SK XXXX, in years the and Santoy and we we continue to see We extend as with slight of that depth one a that both go depth. moment. those. at the drilling main areas increase focus we're And that's at the do of

current ourselves. they this in very in processed front we've deeper. of from We jewelry that chamber stage. drilled And front drill so But it boxes drilling we've -- what We drilling, the out have are extends The ourselves and high these we depth time at hope of do find of drilled built we don't time at further. them these chasing and both to got we've are we grades. that we've

but holes at there So, we've in see know the got We moment. we the grade drill can structure, what is. don't

they holes front got that too -- ourselves. don't in don't of So we've -- far extend and the

over time. that extend drilling We will

you. it we I there cannot So, to get by a be hopeful. that high, continues are so But depends stope it the chance we a able this are or more the this whether in promise focus, year. If and get in of and it there to is another grades we front us, of will is do of want end not,

Cosmos Chiu

Maybe a bigger picture at Seabee here.

the basis? plans preliminary go-forward your Gold But at that us any closed anything recently. in share time? terms You've this a of big you package Have Taiga land formulated only on plans you a land in on point for can transaction with package

Stewart Beckman

Yes.

the So, ahead XX years, considerations package Fisher part with next we've exploration it acquiring our there we still for you in. Board over areas was of The are which start land. part already say, of our approval shared it's got some the we're the other exploring as that. process of where developed of course, early we're the of Cosmos, We But And the of buying then strategy obvious, highlighted very interested that to pretty exploring. is as and days.

Cosmos Chiu

questions Copler Maybe here. -- Copler just on on two

you is As planned. flotation the said, going as ramp-up

sulfide in up mentioned, Or a you what had you ramp As you tonnes Could go us, of now higher is you plant XXX,XXX the with the could remind even had the that record circuit? targeted? flotation QX.

Stewart Beckman

Yes.

we go expectation go is and higher. that budgeting we're that higher will our So, -- to

if I numbers haven't you're pretty technical been that types It's And we flotation what's put looking different the commissioning plant. the and it a for guideline couple only pretty accurate. completed the the lot in really through in it's a of for of think days remains because a just war we've early of months. report used,

good recovery seeing far, So into and we're so far, bit a gold of seeing performance. more we're better volume

We guys to the managed underlying to also, performance of the autoclave, as the autoclaves well. their also, the of the credit increase performance

positive the the pretty we're we're lifetime. pretty with the and performance optimistic of about -- So, autoclaves

Cosmos Chiu

I lower recovery mentioned, Stew, then well than last to recovery. leads that as XX% it that last And the like that think my question, was XX% in I year, plus quarter, year. was slightly you know next

coming that the lower if higher due into number? the was good had you're As And is the circuit I'm mentioned, to just types in? flotation feeding you still you expected? a know XX% ore is what different that flotation. wondering than I

Stewart Beckman

recovery. stable plant is plant bring on. due the chase to and and for so the strategy up at up the up to get flotation the then our coming was And part in bring Yes. plant first to bringing tonnage the tonnage, it It

leading flotation the into the problems up. back tune down Xst the I recovery us take caused of know couple shutdown really have on of contributed to plant end the that We settle April. or as that some in a as to will We issues also did us just well that. of X to it quarter a that plant had started with start

Cosmos Chiu

my then picture Rod. bigger And question, last for maybe

higher in in We'll As get you good second flow very cash free mentioned, even half with Rod, the QX. production. better

of going dividend, Could are you've general course in keeps up in cash? your and terms plans normal capital to of sold And of in allocation? issuer investors maybe your back where what and everything going capital bid noncore but terms returned a you're all some off increase the else, spend You've to make you your comment with assets. that cash

Rodney Antal

Yes.

what as And assets think built think you you problem. a paint been business is for to to actually from on about. are strength just there, Cos differentiators out our should it contributing us great good really I is one But it. mean of and the performance strength. it's the of I goes I all really think

form. said, around million I shape or look, you returns step to played that some our in like around $XXX initial and we capital the out strategy last year took nearly capital returns So delivered the think shareholders we and our back

looking out or in start portfolio. think X cash cetera, We this the tech problem assess the part Taiga and of much the portfolio, a a opportunities discussion. merger, able next that take the the really, into for have. increase the busy more the But the in cetera, continue et portfolio. only post conversion et an very position, Alison cash we'll to with obviously month keeping from rates get assets the address our assets you coming the of remainder that talk we've us non-core the a to those we've to ounce with acquisition, of assets, adding make, at that as And is and really first the team good to really been well the for coming as not remains Stew investing you had important highlighted all success, in here particularly reports year plan rationalizing which business work about as up as in are exploration around to into Having for which, to us, is the efforts progress for to us Board if keep is on $X his that think to it. ability about about again, And progress if we good to

internally time to looking a it distribute volatile cash opportunities our to strength be is a some a during good at sheet position and Cos, a with in it's reinvest. looking bit at to actually So of we're having everything. opportunities in. balance excess shareholders It's to

And other the what I position a as moment. that's where in. kind that the we're strength So, the a think for to and of -- are I quite is of company we like position will known really at position sort from be launch of

Operator

The next question comes from Ovais Habib with Scotiabank.

Ovais Habib

I of inflation. inflation, just with start at bit but presentation, of think little I on the have questions did already, congrats talk A Cosmos, Again, couple answered a agree the my about to the a beginning you and good quarter been strong cost a year.

and you You know but in in on buffer really of good I -- note terms a a started inflation guidance as added had well. in your on cost,

is where to cost In reagents, point terms you or according to terms basically your we cost where guidance estimates? currently? your of feel or that explosives, where relook budgets sits the have feel supply, where of And do you at in

Rodney Antal

this take let and discuss Sure. Ovais, one I'll you. for it Alison actually up

Alison White

seeing lot as are we of and a other inflation as areas. So, -- seeing diesel, definitely we well consumables are across our explosive key

item the diesel is we typically, standpoint, consumable to seen as the of are where depending is from sites. we're little the increase that, have of But well some range an our world. to seeing the across what location of on a we the really increases XX% particular actual region a the So, range that from we're the in that fluctuations or And and cost bit seeing XX%, the beyond AISC. cost located as of each anywhere of really

about we price, from $X AISC. especially diesel anywhere XX%-ish say where We to have a generally, at typically location a see longer such have impact ounce per as in increase we haul, Marigold,

are year. seeing thus certainly it we costs managing as we are the far our and you've through so far, down are noted, for So,

we are that what typical certainly a reforecasting and guidance, are and original including come see additional our information. expected we'll above our in watch to on go However, keeping we do it we our in going year. to going and increases are anticipated we tight if budget And beyond or price that the the with for back out

Rodney Antal

interested I amount quite effort think hard end. pathway on and moment to seems that build business general see across be it, to just the sense on a at tackle to to is huge going of the Ovais, the to what to a

good what outlined, has as we're think suggesting actually Alison I the shape. is, at pretty in moment we're

However, statement think it will be persist the and and cautionary gets little won't boat, seeing through. obviously, worse, there's be they pressures I you're bit just a those play of if a it us that it industry, in

But think others. rapid manage don't end see are in But job a I we done I so far any good we've think more pretty to it. Some than sight.

Operator

The Mike comes next from with Bank. question National Parkin

Michael Parkin

Congrats at a especially Seabee. on pretty stellar quarter,

getting, finer you in can question, being give surprise? are Marigold function additional us of Is Or ore the a it that fines just is that what First a you it it mentioned you're Just north some on like at there. color up a little pit. is more -- facing color is or actually expected? of like above you're in terms generated bit a of lasting

Stewart Beckman

Stew Yes, here. Mike, it's

So, but slightly are the at and they're at are new H surface, grades They're these higher, X the and surface. the pits. [indiscernible] X pits,

fine-grained material. just So, it's

dug fact, pit result. the benches of a In free first the couple we as

from leach, pit, hold the percolation water material more durable So, we on blended heap with get the to than it And that material. finer. we when the other it's stack durable Mackay coming one it's does more ensure less we the just because but it

the our it models. in that, churning represent out. which is volume a And we've so models, build leach holds as heaps water out it the coming what the slows it it, into we through the slows models, the our heap. we our When slowing does passing leach irrigate or solution, it we we're slowing -- build leach of seeing what we're been and -- seeing And when it it it models goes holds down comes leach as both

Michael Parkin

of more just issue not terms of slowing percolation? an a It's generation. in the like fines it's of blockage So,

Stewart Beckman

Yes. Yes, that's it. more to

Michael Parkin

to say a you consumables the with respect inflationary just with Turkey consumables you of in similar other Copler, Is diesel whether closer a tied it over finding to being to going any what's little commodities? being that relative that global of pressure fairly are significant Ukraine, or Or Just supply a on consumables, key be of to pressures evident? Russia seeing on geological Marigold? to number on the a are there it location bit for

Stewart Beckman

think you there's to to don't Turkey. Russia up what's happening overlay I specific in anything could that

is, across And do sort cost I we're the with generally, at Russia. anything think Alison pressures to does vary region, on has their seeing wouldn't of each by world I it the depending but suggest it operations. of specific that outlined what as it's one

Michael Parkin

And me. then for just question last

how Can You give autoclave a for many are? of QX. mentioned you Copler's maintenance outages the QX planned us and those sense just days for

Stewart Beckman

Yes.

down, that. And whole plant do circuit. through take total X one performance. other going we of was So, down autoclave we days for two, the just had budgeted to shutdown through than #X autoclave to of did some throughput one. shutdown days days, that completed the days We work we we're We of autoclave then then in it longer we Autoclave for pretty bit shutdowns. also XX October. that was which XX #X a When a during the X was do couple do a a took good little the the increase

exactly same. not The the down. XX% a shutdown will in be QX it's it take we approximately So, impact when

Michael Parkin

you're in So one QX? doing number

Stewart Beckman

just time at the shutdown. in in on days, had the bricks the -- one. that the Copler out we're done the happen one that bricks apart And that and this actually doing analysis, from reason we've this called them. just the we've finishing the At of had the then go first was wear a the on re-bricking this extremely I Copler, from first this We're of problems that autoclaves, old little of is, of impressive Yes. the autoclave. and a end or some we just year as the been reschedule -- back with we'll out the -- of the the Yes. that of learnings pretty doing coming autoclaves This some outcome fortunate we're businesses and some very at the to some wear is we've with

parts So, well. the and we phased of in of it autoclave, a re-brick did went the courses very the

Michael Parkin

in? bricks years those originally about since put three Was were that

Stewart Beckman

about. Around Yes.

Operator

Securities. TD with Green Steven from comes question next The

Steven Green

Just another Copler. on one quick

this QX kind shutdowns, result But do on lowest think quarterly the quarters? question that the QX I production and already. being regarding a think in you've of answered you will basis

Stewart Beckman

Yes.

Steven Green

the leach. you in? you when a basis come you that heap material scheduled And some tell on Can will your be when on stacked mine do in plans, have us to expect quarterly

Stewart Beckman

schedule at mine, the little to the stack heap year. this We're redoing the moment the very but there's for leach

So, production, quite low. if at it's forecast looked you our

Steven Green

So, mean this may leach then? residual

Stewart Beckman

Yes.

Steven Green

quickly. a the I you question think Seabee one that Again, still high-grade answered kind expectations rest in of those zones But And just year. of back stockpile. the the profile you did and getting are grade you mining for mention to on of did you

expect You of of some into these mill. bleed high QX you some to do the material stockpile well? Do grades part have as

Stewart Beckman

this of be this not so. There XX of will a at gram not sorry, into month, lot best material -- QX we in stockpile. a gram the in So bleed of miners, quarter. finished the stockpile tonne the material we a all the into some Like high-grade mining in that that so is would like sort be first, I we the to grade it put have or but on We zone. have the some do in good XX tonne,

Steven Green

expect So, gram be then the range? of XX in material would reasonable kind mostly to that

Stewart Beckman

we tail Yes, at to we be chance of guidance guidance this this it that will beginning it the give you to at And moment, the that then be. know. because back the next a But year. end the supposed into it's meeting. if will we're exploration, to get at where or on back of can be with better don't successful next able year We'll nobody that there's

can I back. if assays the got you haven't We speculate, like.

Steven Green

enough. fair that's No,

Operator

UBS. Levi Instructions]. with from next is Spry question [Operator The

Levi Spry

over a we months? maybe of into, Maybe just that can tease Plan, there the the And The bit sulfides XX you of just the next an question sort for on on out feeding of drilling I to? Stew. Marigold for can detail update the got the it scope expect maybe the a Master that's deeper the where -- scope guess, has

Stewart Beckman

Okay.

that building can are we EPC we plan pretty we perhaps Canyon different really series share the our report a sites got external excited always what so there the strategic getting at also recently that little operations us. there so we the The Buffalo Buffalo both -- workshops is bit far we of just broader we've to we And is there. development the we had all targets. for thought than work which sort a we back enough about look helping a Trenton Valley, Copler, on version like a look master and development -- efforts key pathway plan, before. focus development which as things we're along. So, that work only would We're it the the the Valley that drilling in and we're what develop can Trenton We've new some the redacted What because company look look in some did had into with a of actually that of we've development experts put at Canyon engineering the that we at and technical and on put engaged the -- an a support. having with give in of community rest of to our us going

be at some a do make the decision point estimates schedules so we a when better we're getting of to generate might and because to what there. And will start have the resource we those understanding on

the because in XXXX, do mine the time. a drilling around exploration XXXX. talked convert current it which of the of and in be are have around resource which you we reserve. will report in the in sort that at in the So We're SK And this drilling would moment focusing that, -- -- some the millennium, and of 'XX, new that last about into permitting in schedule, gap we will some coming in saw into and pits of then that least will the you technical with EIA bit the expect term, more the have completed convert there at progressing will a we convert the near we 'XX in all existing and seen

fill we So, that would gap.

what got report, get done at see to we Buffalo doing. the to and define able work better either aiming we've as think to going next much Valley definition much give are you'll new we we one can that of based we at with as technical we're the that so that And and happen is least be this part drilling Canyon the on should a Trenton of

Levi Spry

timing then? resource on update the Just that

Stewart Beckman

Beginning year. of next

Levi Spry

And the deeper drilling, what is the there? update

Stewart Beckman

still it's pursuing we're our at top exploration. but to with the not So, agenda regards that, of

don't but update kicking really on this have along to got it background, we quarter. we anything So, the

Operator

Mr. the session. Antal. will This call turn I concludes the to over back question-and-answer

Rodney Antal

rest I participating and forward everyone. to in quarter on our Thanks, of appreciate the at efforts today. later Have continuing day, X Great. a look great your year. grade you

call. Thank that, with So, conclude we'll you. the

Operator

This you your call, conference lines. concludes disconnect may and today's