Endeavour Silver Corp (EXK) 2023 Q4 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp. full-year 2023 financial results conference call. (Operator Instructions)

謝謝你的支持。這是會議操作員。歡迎參加 Endeavor Silver Corp. 2023 年全年財務績效電話會議。（操作員說明）

I would now like to turn the conference over to Galina Meleger, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係副總裁加琳娜·梅萊格 (Galina Meleger)。請繼續。

Thank you, operator, and good day, everyone. Before we get started, I ask that you view our MD&A precautionary language regarding forward-looking statements and risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at www.edrsilver.com. With us on today's call is Dan Dickson, Endeavour Silver's CEO; as well as Elizabeth Senez, our Chief Financial Officer; and Don Gray, Endeavour's COO.

謝謝您，接線員，大家好。在我們開始之前，我要求您查看我們關於前瞻性陳述以及與這些陳述相關的風險因素的 MD&A 預防性語言。我們的 MD&A 和財務報表可在我們的網站 www.edrsilver.com 上取得。參加今天電話會議的是 Endeavour Silver 執行長 Dan Dickson。以及我們的財務長 Elizabeth Senez；以及 Endeavour 的營運長 Don Gray。

Following Dan's remarks, we will then open up the call for question. And now, over to Dan.

丹發表演說後，我們將開始提問。現在，交給丹。

Thank you, Galina, and welcome, everyone. As we commence this year's earnings call, I think it's important to acknowledge the dynamic landscape that shaped the mining sector in 2023.

謝謝你，加琳娜，歡迎大家。當我們開始今年的財報電話會議時，我認為重要的是要承認塑造 2023 年採礦業的動態格局。

Rollercoaster market forces lead to volatile and lower equity prices. These events negatively impacted company valuations across the precious metals sector, creating a significant disconnect from the underlying commodity prices. With this broad market backdrop, we navigate at higher operating costs, adding complexity to our operations. This theme was apparent for all Mexican mining firms, which saw cost pressures across multiple channels.

過山車般的市場力量導致股價波動和下跌。這些事件對整個貴金屬產業的公司估值產生了負面影響，與基礎商品價格顯著脫節。在這種廣闊的市場背景下，我們面臨更高的營運成本，增加了我們營運的複雜性。對於所有墨西哥礦業公司來說，這個主題都很明顯，它們面臨多個管道的成本壓力。

To put this into perspective, I'll provide some key data points. Over the last three years, the Mexican consumer price index surged by more than 21% and was amplified within our industry as key inputs such as steel, reagents, and other consumables were impacted by supply constraints. Furthermore, from Q4 2021 to Q4 of 2023 the Mexican peso strengthened by nearly 20% against the US dollar had cascading effects on our in-country purchases and labor costs.

為了正確理解這一點，我將提供一些關鍵數據點。在過去三年中，墨西哥消費者物價指數飆升了 21% 以上，並且由於鋼鐵、試劑和其他消耗品等關鍵投入品受到供應限制的影響，該指數在我們的行業內被放大。此外，從 2021 年第四季到 2023 年第四季度，墨西哥比索兌美元升值近 20%，對我們的國內採購和勞動成本產生了連鎖反應。

As I look back on the year, I can affirm that our operations team displayed unwavering dedication in navigating these challenges. Today, I don't want to just reflect on these challenges, but to emphasize the strategic initiatives we've implemented to ensure the growth and success of our company.

當我回顧這一年時，我可以肯定我們的營運團隊在應對這些挑戰方面表現出了堅定不移的奉獻精神。今天，我不想僅僅反思這些挑戰，而是想強調我們為確保公司的成長和成功而實施的策略性舉措。

On a consolidated basis, this year, we produced 8.7 million silver ounces equivalent metal, which met guidance after two consecutive years of exceeding production guidance. Production was near the lower end of the guidance range with a production shortfall in Q3, largely due to mine resequencing changes we implemented to improve ventilation and ultimately worker safety. This temporary disruption in operations results in a reduced mine output and ore grades.

綜合來看，今年我們生產了 870 萬盎司當量金屬，在連續兩年超過產量指導值後達到了指導價值。產量接近指導範圍的下限，第三季產量出現短缺，這主要是由於我們為改善通風並最終改善工人安全而實施的礦井重新排序改變。這種暫時的營運中斷導致礦場產量和礦石品位下降。

I'm pleased to say Guanacevi's performance improved significantly in the fourth quarter as planned improvements were executed extremely well and swiftly. Not only did Guanacevi's production returned to historical levels, but our recovery strategy more than met expectations as silver grades, gold grades, and plant throughput exceeded our estimates.

我很高興地說，瓜納塞維的業績​​在第四季度顯著改善，因為計劃的改進得到了非常好的和迅速的執行。不僅Guanacevi 的產量恢復到了歷史水平，而且我們的恢復策略也超出了預期，因為白銀品位、黃金品位和工廠產量都超出了我們的預期。

The plant refurbishments completed at the beginning of Q4 enhance our operational flexibility to exceed the historical throughput of 1,200 tons per day. These improvements and enhancements led to escalated costs in the second half. However, cost metrics significantly improved in Q4. While Guanacevi had its challenges in Q3, Bolañitos' performance remained steady, with increased silver production offset by lower gold production in the fourth quarter.

第四季初完成的工廠翻新工程增強了我們的營運靈活性，突破了每天 1,200 噸的歷史吞吐量。這些改進和增強導致下半年成本上升。然而，第四季的成本指標顯著改善。雖然Guanacevi 在第三季度面臨挑戰，但 Bolañitos 的業績保持穩定，白銀產量的增加被第四季度黃金產量的下降所抵消。

From a financial standpoint, for the year, we reported revenue of $206 million, with cost of sales of $169 million for operating earnings of $37 million and mine operating cash flow of $40 million. After exploration, G&A, and other investment expenses, we reported a net income of $6 million, or $0.03 per share. For the year, Guanacevi delivered $14.3 million of mine free cash flow, and Bolañitos delivered $2.5 million.

從財務角度來看，我們今年的收入為 2.06 億美元，銷售成本為 1.69 億美元，營運利潤為 3,700 萬美元，礦場營運現金流為 4,000 萬美元。扣除勘探、一般行政費用和其他投資費用後，我們報告的淨利潤為 600 萬美元，即每股 0.03 美元。今年，Guanacevi 交付了 1,430 萬美元的礦場自由現金流，Bolañitos 交付了 250 萬美元。

Our cost of sales increased 6% compared to the previous year. While there are a number of drivers, a strong Mexican peso and inflationary pressures on consumables were the two most impactful. Again, these two factors with lower-than-planned ore grades and mine -- ore grades mined due to the mine resequencing in Q3 contributed into elevated cost metrics for the year, with cash costs and all-in sustaining costs at $13.49 and $22.93 per ounce, respectively. Both metrics were higher than we originally guided.

與前一年相比，我們的銷售成本增加了 6%。雖然驅動因素很多，但墨西哥比索走強和消費品通膨壓力是影響最大的兩個因素。同樣，礦石品位低於計劃的這兩個因素以及由於第三季度礦山重新排序而開採的礦石品位導致了今年的成本指標上升，現金成本和總體維持成本分別為 13.49 美元和 22.93 美元。分別為盎司。這兩個指標都高於我們最初指導的程度。

However, the fourth quarter gave us some footing as costs came down significantly from Q3. Our fourth-quarter cash costs and all-in sustaining costs were $12.54 and $21.48 per ounce, respectively. The remediation efforts extended into early Q4, and the positive momentum on these initiatives are expected to carry forward.

然而，第四季給了我們一些立足點，因為成本較第三季大幅下降。我們第四季的現金成本和整體維持成本分別為每盎司 12.54 美元和 21.48 美元。整治工作已延續至第四季初，這些措施的積極動能預計將持續下去。

Looking to 2024, containing costs and finding efficiencies will remain in focus. While we continue to experience inflationary pressures and strong local currency, we are aggressively implementing business improvement initiatives to mitigate these headwinds.

展望 2024 年，控製成本和提高效率仍將是焦點。雖然我們繼續面臨通膨壓力和堅挺的當地貨幣，但我們正在積極實施業務改進舉措，以減輕這些不利因素。

As of year end, we had cash of $35 million and working capital of $43 million. Cash decreased in Q4 as funds were spent on the development activities at Terronera and long-term prepaids went up significantly as we placed deposits with contractors and equipment.

截至年底，我們擁有 3,500 萬美元現金和 4,300 萬美元營運資金。第四季現金減少，因為資金用於 Terronera 的開發活動，而由於我們向承包商和設備存入押金，長期預付款大幅增加。

Working capital has fallen as we continue to invest in the Terronera project. With this investment, we built up our non-current assets, including $22 million in construction deposits related to the Terronera build and $23 million in value added tax. Either receivable have been submitted for processing, and the company is working with the authorities on timely collection. However, we conservatively classify these as non-current assets until collection starts.

隨著我們繼續投資 Terronera 項目，營運資金有所下降。透過這項投資，我們建立了非流動資產，包括與 Terronera 建設相關的 2,200 萬美元的建設押金和 2,300 萬美元的增值稅。上述應收帳款已提交處理，本公司正配合相關部門及時催收。然而，在收集開始之前，我們保守地將這些資產歸類為非流動資產。

As per requirements under the $120 million senior secured debt facility, we must primarily self fund development through cash on hand before drawing on the facility. As such, we are well positioned to satisfy the financing requirements of the project and are expecting to complete our first draw in March.

根據 1.2 億美元優先擔保債務融資的要求，在動用該融資之前，我們必須主要透過手頭現金自籌資金進行開發。因此，我們完全有能力滿足該專案的融資需求，並預計在三月完成第一次抽籤。

During Q4, we raised gross proceeds of $39 million through the ATM, and another $24 million was raised subsequent to year end to ensure there's sufficient funding in place for the development of Terronera. When you add this all up, we have sufficient capital. We're confident that the actions we've taken will see Terronera through the finish line, while also supporting the high-value organic growth initiatives in place at Pitarrilla.

第四季度，我們透過 ATM 籌集了 3,900 萬美元的總收益，年底後又籌集了 2,400 萬美元，以確保有足夠的資金用於 Terronera 的開發。當你把所有這些加起來時，我們就有足夠的資本。我們相信，我們所採取的行動將幫助 Terronera 衝過終點線，同時也支持 Pitarrilla 實施的高價值有機成長計畫。

As a reminder, Pitarilla is our next project in the pipeline located in the Durango State of Mexico. It's one of the world's largest undeveloped silver deposits with nearly 600 million ounces of silver defined.

提醒一下，Pitarilla 是我們位於墨西哥杜蘭戈州的下一個計畫。它是世界上最大的未開發銀礦床之一，已探明白銀儲量近 6 億盎司。

Let's give a quick update on the construction progress at Terronera. In January 2024, we completed a risk analysis on the project for the remaining expenditure and provide an updated initial capital cost and execution plan. Mirroring the trends we experienced at our producing mines in Mexico, we faced similar headwinds at Terronera during the construction year.

讓我們快速介紹一下 Terronera 的施工進度。2024 年 1 月，我們完成了對該專案剩餘支出的風險分析，並提供了更新的初始資本成本和執行計劃。與我們在墨西哥生產礦山所經歷的趨勢相呼應，我們在 Terronera 在施工期間也面臨類似的阻力。

The impacts of a stronger Mexican peso, ongoing inflation, and tight markets for equipment and bulk materials all contributed to an 18% increase to our updated initial capital estimate of $271 million, up from $230 million. Capital pressures, notwithstanding the pace of the project development, continues to advance and is on track with previous guidance with commissioning planned in Q4 of 2024.

墨西哥比索走強、持續通膨以及設備和散裝材料市場吃緊的影響都導致我們更新後的初始資本估算從 2.3 億美元增加到 2.71 億美元，增加了 18%。儘管專案開發速度加快，但資本壓力仍在繼續推進，並符合先前的指導方針，計劃於 2024 年第四季投入運作。

At the end of the year, we reached 46% completion on the overall project progress compared to the original guidance. However, due to the adjusted weighting on the updated initial CapEx, management estimates an adjusted 43% completions as of December 31. We'd spent $122 million on direct development, while project commitments totaled $171 million, or 63% of the updated capital budget.

到年底，我們的專案整體進度比原定目標完成了 46%。然而，由於調整後的初始資本支出權重，管理層估計截至 12 月 31 日調整後的完工率為 43%。我們在直接開發上花費了 1.22 億美元，而專案承諾總額為 1.71 億美元，佔更新資本預算的 63%。

During Q4, we concentrate our efforts on completing key items, including earthworks for Upper Mill Platform, procurement of equipment, and advances in plant concrete, and achieved significant progress in constructing our process plant. If you are interested in seeing photos of the construction progress, I encourage you to visit our website under the Terronera page.

第四季度，我們專注於完成上磨平台土方工程、設備採購、廠房混凝土升級等重點項目，流程工廠建設取得重大進展。如果您有興趣查看施工進度的照片，我鼓勵您訪問我們的 Terronera 頁面下的網站。

Let me provide a few recent highlights of progress at Terronera, which demonstrates our strong commitment to responsible sustainable development and working collaborative with our local key stakeholders. Starting with safety, our Te Cuido culture has served as a solid foundation for building a strong safety record at the project. We finished the year with no lost time accidents over 172 days of work at site, which translates to about 600,000 man hours.

讓我介紹一下 Terronera 最近的一些進展，這表明我們對負責任的可持續發展以及與當地主要利益相關者合作的堅定承諾。從安全開始，我們的特奎多文化為在該專案中建立強大的安全記錄奠定了堅實的基礎。我們全年在現場工作 172 天（相當於約 60 萬工時），沒有發生任何誤工事故。

Specifically, we heightened safety protocols significantly, especially during the rainy season. And notably in Q4 when we were alerted to the imminent arrival of hurricane Lidia along the coastline. Despite facing a Category 4 storm, our site weathered the event admirably, experienced only minor damage to exterior fixtures and some fallen trees.

具體來說，我們顯著加強了安全規程，尤其是在雨季。尤其是在第四季度，我們收到警報稱颶風「莉迪亞」即將沿著海岸線抵達。儘管面臨 4 級風暴，我們的工地還是出色地度過了這次事件，僅對外部固定裝置和一些倒下的樹木造成了輕微損壞。

The robustness of our drainage system proved crucial in maintaining the integrity of the site and roads. As a precautionary measure, we suspended on-site activities to ensure the safety of our personnel. Fortunately, power and normal operations were swiftly restored within a few days. We also supported local relief efforts with our on-site team helping local communities to recover.

事實證明，我們排水系統的穩健性對於維持場地和道路的完整性至關重要。作為預防措施，我們暫停了現場活動，以確保人員安全。幸運的是，電力和正常運作在幾天內迅速恢復。我們也透過現場團隊支持當地救援工作，幫助當地社區恢復重建。

Over the year, we've emphasized the importance of the efficiency of our mine development. To address this, we strategically onboarded top-tier talent and successfully transitioned to our in-house mining team after start-up with mine contractors. This shift was always designed and has yielded significant development efficiencies, with notable enhancements in Q4, where we met our daily advance rate targets facilitated by improved blasting techniques, water control, and better ground conditions.

一年來，我們一直強調礦場開發效率的重要性。為了解決這個問題，我們策略性地引進了頂級人才，並在與礦山承包商合作啟動後成功過渡到我們的內部採礦團隊。這種轉變始終是經過精心設計的，並產生了顯著的開發效率，第四季度顯著提高，透過改進的爆破技術、水控制和更好的地面條件，我們實現了每日進度目標。

As the year concluded, our cumulative underground development reached over 2,200 meters, marking a substantial 70% increase in meters compared to Q3. The positive momentum in advance rates indicates a promising trajectory forward.

截至年底，累計地下開發量超過2,200米，較第三季大幅成長70%。預付率的正面動力顯示前進的軌跡充滿希望。

During the quarter, Portal 4 client broke through to surface and preparations are now underway to complete the portal structure in Q1 2024. The majority of construction activities have progressed well at the plant site. Currently, surface construction stands at nearly 50% completion and the advanced stage of concrete work sets the stage for commencement of vertical construction, which started in January.

本季度，Portal 4 用戶端已上線，目前正在準備在 2024 年第一季完成入口網站結構。工廠現場的大部分建設活動進展順利。目前，地面施工已完成近 50%，混凝土施工的後期階段為 1 月開始的垂直施工奠定了基礎。

At year end, the concrete was nearly done in both the grinding and the flotation areas and was being prepared for the general contractor begin structural steel and mechanical installations. Also during Q4, we initiate the construction of the access road connecting the lower platform to the tailing storage facility area and the upper Upper Mill Platform.

年底，研磨和浮選區域的混凝土已基本完成，並正在為總承包商開始鋼結構和機械安裝做準備。同樣在第四季度，我們啟動了連接下部平台與尾礦儲存設施區域和上部磨機平台的通道建設。

Our Terronera workforce continues to grow with over 520 employees and contractors on site. On the procurement side, all major equipment was ordered by year end, and the team is focused on procuring bulk materials, including structural steel, piping, and electrical cable. And lastly, on the communities relation side, we continue to have full support from the municipality and continue to engage and educate the municipality as we progress at site.

我們的 Terronera 員工隊伍不斷壯大，現場員工和承包商已超過 520 名。採購方面，主要設備已於年底訂購完畢，團隊重點採購結構鋼、管道、電纜等大宗材料。最後，在社區關係方面，我們繼續得到市政府的全力支持，並在現場進展過程中繼續與市政府接觸和教育。

Okay, so I've touched a lot on 2023. Let's have a look at what's at store this year for for Endeavour. We enter 2024 in a solid position both financially and operationally with a number of strategic initiatives underway that will drive our future growth. Our production outlook anticipates gold and silver to be consistent with 2023, and managing costs will continue to be a key focus as we aim to offset the impact of rising costs.

好吧，我對 2023 年感觸頗多。讓我們來看看今年奮進號的表現。進入 2024 年，我們在財務和營運方面都處於穩固的地位，多項策略舉措正在進行中，這將推動我們未來的成長。我們預計黃金和白銀的生產前景將與 2023 年保持一致，管理成本將繼續成為重點，因為我們的目標是抵消成本上升的影響。

Guanacevi and Bolañitos are mature assets, and we have plans to invest more than $30 million in sustaining capital to optimize their performance and maximize output.

guanacevi 和 Bolañitos 是成熟的資產，我們計劃投資超過 3000 萬美元用於維持資本，以優化其績效並最大化產出。

Equally important on this year's agenda is advancing our growth profile. We have $9 million earmarked across our exploration portfolio to continue our long successful track record of growing through the drill bit. For instance, at Pitarilla we hope to invest over $5 million on several initiatives. This year's plan is to conduct a 6,000-meter drill campaign to target the high-grade zones and feeder structures of the existing resource. We'll use the data collected to guide our next steps with the expectation to assist this project as an underground silver mine.

今年議程中同樣重要的是提升我們的成長前景。我們在勘探投資組合中預留了 900 萬美元，以延續我們透過鑽頭實現成長的長期成功記錄。例如，在 Pitarilla，我們希望在多項措施上投資超過 500 萬美元。今年的計劃是開展一次 6,000 公尺的鑽探活動，目標是現有資源的高品位區域和支線結構。我們將使用收集到的數據來指導我們的後續步驟，並期望為這個地下銀礦計畫提供幫助。

Ultimately, the combination of Terronera and Pitarilla supports our long-term vision to become a 20-million-ounce senior silver producer and provides a value proposition that is best in the silver space. With constructive macro backdrop for both gold and silver in place, we believe our growth strategy is well timed and well suited to drive outperformance for our stockholders in the coming years.

最終，Terronera 和 Pitarilla 的合併支持了我們成為 2000 萬盎司高級白銀生產商的長期願景，並提供了白銀領域的最佳價值主張。鑑於黃金和白銀具有建設性的宏觀背景，我們相信我們的成長策略恰逢其時，非常適合在未來幾年為我們的股東帶來優異的業績。

I'd like to add that over the past few years, we have deliberately reinvested in the business for long-term growth. Now with less than a year to go before Terronera comes on stream, we can expect to see the benefits of these investments accrue to our shareholders.

我想補充一點，在過去的幾年裡，我們有意對業務進行再投資，以實現長期成長。現在距離 Terronera 投產還有不到一年的時間，我們可以期待看到這些投資為我們的股東帶來好處。

2024 is about execution at Terronera, which is clearly transformational. Upon completion, we expect Terronera will nearly double our production, significantly reduce our cost profile, and provide substantial free cash flow for our shareholders. It's going to be exciting year for Endeavour and our stakeholders. While we face a few more capital-intensive months ahead as we ramp up to production, we look forward to the arrival of strong free cash flow generated in 2025.

2024 年是關於 Terronera 執行力的一年，這顯然是一場變革。完成後，我們預計 Terronera 的產量將增加近一倍，顯著降低我們的成本，並為我們的股東提供大量的自由現金流。對於 Endeavour 和我們的利害關係人來說，這將是激動人心的一年。雖然隨著我們的投產，未來幾個月我們將面臨更多的資本密集挑戰，但我們期待 2025 年產生強勁的自由現金流。

Before opening for questions, I'd like to formally welcome Elizabeth Senez, our recently appointed CFO, to our executive leadership team. Libby joined us in January, and we're thrilled to have her on our team as a finance executive, with a predominantly Latin American focus she brings over 20 years of value in accounting, corporate finance, and corporate treasury to her role.

在開始提問之前，我想正式歡迎我們最近任命的財務長 Elizabeth Senez 加入我們的執行領導團隊。Libby 於 1 月加入我們，我們很高興她加入我們的團隊，擔任財務主管，主要關注拉丁美洲，她為自己的角色帶來了 20 多年在會計、企業財務和企業財務方面的價值。

On behalf of the entire team at Endeavour Silver, I would like to also thank Christine West, our former CFO, for her many contributions to the company over the past 16 years. Throughout her career with Endeavour, she has demonstrated incredible dedication to work and to the success of our company, Christine, we wish you all the best in retirement.

我還要代表 Endeavor Silver 的整個團隊感謝我們的前財務長 Christine West 在過去 16 年為公司做出的許多貢獻。在奮進公司的整個職業生涯中，她表現出了對工作和我們公司成功的令人難以置信的奉獻精神，克里斯汀，我們祝您退休後一切順利。

Together with the other members of our management team, we'd be happy to take your questions. Let's open up the lines, operator.

我們很樂意與我們管理團隊的其他成員一起回答您的問題。讓我們打開線路吧，接線員。

(Operator Instructions) Jake Sekelsky, Alliance Global Partners.

（操作員說明）Jake Sekelsky，Alliance Global Partners。

Hey, Dan and team. Thanks for taking my questions.

嘿，丹和團隊。感謝您回答我的問題。

Hey, Jake. How are you?

嘿，傑克。你好嗎？

Well, well. How are you? So just starting with ASIC guidance for the year, can you speak to -- or maybe quantify the positive impacts that the recent move in the gold price might have from a gold credit perspective?

好吧。你好嗎？那麼，從今年 ASIC 的指導開始，您能否從黃金信貸的角度談談或量化近期金價走勢可能產生的正面影響？

Yeah. Well, for the year, just for all the listeners, we'll produce about 5 million ounces of silver and about 35,000 ounces of gold. Obviously, $100 impact on increase in the price of gold has a significant impact from a by-product standpoint. We did our budgeting, I believe, at $1,840 for the year on gold. Obviously, today we're sitting around just shy of $2,200.

是的。好吧，今年，僅對於所有聽眾來說，我們將生產約 500 萬盎司白銀和約 35,000 盎司黃金。顯然，從副產品的角度來看，100 美元對金價上漲的影響有重大影響。我相信，我們今年的黃金預算為 1,840 美元。顯然，今天我們的價格接近 2,200 美元。

That impact, well, first of all, significantly drives down on a per ounce basis, by product basis. Specifically, when it goes right into our cash costs and where our guidance was, it's beneficial. But I think it's still early days, and we'll stick by our guidance views in $1,840.

首先，這種影響會顯著降低每盎司產品的價格。具體來說，當它直接計入我們的現金成本和我們的指導時，它是有益的。但我認為現在還為時過早，我們將堅持 1,840 美元的指導觀點。

Okay, that's helpful. And then just at Terronera, can you just touch on the remaining exposure from a CapEx standpoint to broader inflationary pressures and what else still needs to be locked in then?

好的，這很有幫助。然後，在 Terronera，您能否從資本支出的角度談談對更廣泛的通膨壓力的剩餘風險敞口，以及還需要鎖定什麼？

Yeah, I think at this point, Jake, the inflationary pressures is probably taken away, just the fact that we've done most of our key procurement, even on bulk items now. When we reestimate at the price of Terronera, the initial CapEx is going from $230 million, $270 million. We adjusted our Mexican FX rate to [17.3%] in our budget. And so as long as the Mexican FX rate stays there, I think we'll be all right. Now it just comes down to productivity at site and making sure we execute.

是的，我認為在這一點上，傑克，通膨壓力可能已經消除，事實是我們已經完成了大部分關鍵採購，即使現在是大宗商品。當我們重新評估 Terronera 的價格時，初始資本支出將從 2.3 億美元增加到 2.7 億美元。我們在預算中將墨西哥匯率調整為 [17.3%]。因此，只要墨西哥匯率保持不變，我認為我們就會沒事。現在，一切都取決於現場的生產力並確保我們執行。

Again, there's always going to be small headwinds, whether it's inflationary or if the peso continues to appreciate, but the impact and what's left to build over the next nine months is small as long as we produce.

再說一次，總是會有一些小的阻力，無論是通貨膨脹還是比索繼續升值，但只要我們繼續生產，未來九個月的影響和剩餘的影響就很小。

Got it. Okay. That's all for me. Thanks again.

知道了。好的。這就是我的全部。再次感謝。

Heiko Ihle, H.C. Wainwright.

海科‧伊勒 (Heiko Ihle)，H.C.溫賴特。

(technical difficulty)

（技術難度）

Hey, Heiko, hopefully your question coming through. You sound a little digitized at this time.

嘿，Heiko，希望你的問題能得到解答。你現在聽起來有點數位化了。

(technical difficulty)

（技術難度）

Apologies, Heiko. From our end, we couldn't get what you're saying. Everything's come through digitized. Operator, we can maybe go to the next question and put Heiko back in queue, if possible.

抱歉，海子。從我們這邊來看，我們無法理解你所說的話。一切都已數位化。接線員，如果可能的話，我們也許可以轉到下一個問題，並將 Heiko 放回隊列中。

Lucas Pipes, B. Riley Securities.

盧卡斯‧派普斯 (Lucas Pipes)，B. 萊利證券 (Riley Securities)。

Thank you very much, operator. Good morning, everyone.

非常感謝您，接線生。大家，早安。

Morning, Lucas.

早上好，盧卡斯。

I'll try not to sound like R2-D2, but first, I want to add my congrats to Elizabeth. And then Christine, I hope you enjoy retirement. And maybe a first question on the cost side, what else can be done? What else are you looking at to mitigate costs going forward? Would appreciate your thoughts. Thank you.

我會盡量讓自己聽起來不像 R2-D2，但首先，我想向 Elizabeth 表示祝賀。然後克莉絲汀，我希望你享受退休生活。也許成本方面的第一個問題是，還能做什麼？您還希望採取什麼措施來降低未來的成本？非常感謝您的想法。謝謝。

Yeah. Gianacevi comes still -- we still have opportunity for productivity. So in Q3, we had ventilation issues that made it extremely warm for our employees to work underground. And as we got deeper into the El Curso area, it got hotter. And at Q4 -- or Q3 and Q4, we put through a new ventilation system and ultimately increased our pumping of the water that was coming out. And we got a lot of benefit of that in Q4, but there's still some benefit to come in Q1, and that just comes down to productivity.

是的。賈納塞維仍然平靜下來——我們仍然有提高生產力的機會。因此，在第三季度，我們遇到了通風問題，這使得我們的員工在地下工作變得非常溫暖。隨著我們深入埃爾庫索地區，天氣變得越來越熱。在第四季度——或第三季和第四季度，我們安裝了新的通風系統，並最終增加了對流出水的抽水量。我們在第四季度從中獲得了很多好處，但在第一季仍然有一些好處，這取決於生產力。

So when the mine got overly hard, we had to give more breaks to our employees and put them in cooling chambers to effectively make sure that they're operating in a safe manner. And I think at this point in time, with the ventilation and where the temperature is underground, they can work fully. And so there's productivity gains that could be gained at Guanacevi. And then it's working across both Bolañitos and Guanacevi and making sure we're procuring and going out to a number of different vendors and trying to get some bulk work done on that.

因此，當礦井變得太堅硬時，我們必須給員工更多的休息時間，並將他們安置在冷卻室中，以有效確保他們以安全的方式作業。我認為在這個時間點上，有了通風和地下溫度，它們就可以充分工作。因此，瓜納塞維可以提高生產力。然後它在博拉尼托斯和瓜納塞維開展工作，確保我們正在採購並與許多不同的供應商聯繫，並試圖完成一些批量工作。

There's always abilities to kind of look at what we're doing from a purchasing standpoint, what we're doing from a productivity standpoint, making sure that ultimately, our mine development is a big focus this year that we are getting our advance rate as expected and putting some incentives to make sure that we're doing that as a group. So there's a lot of little things that we can do.

總有能力從採購的角度看待我們正在做的事情，從生產力的角度來看我們正在做的事情，確保最終我們的礦山開發成為今年的一大焦點，我們的提前率是期望並採取一些激勵措施以確保我們作為一個團隊這樣做。所以我們可以做很多小事。

Obviously, the mature assets at Guanacevi and Bolañitos are just kind of diminishing returns over the years. But I think with what we've seen in Mexico, with regards to all those cost pressures, that we have to look at anything that's available to us to try to reduce our costs on a per ton basis.

顯然，瓜納塞維和博拉尼托斯的成熟資產多年來只是回報遞減。但我認為，根據我們在墨西哥所看到的情況，考慮到所有這些成本壓力，我們必須尋找任何可用的方法來嘗試降低每噸成本。

Thank you for that. And switching over to Terronera, where does the workforce stands today and what's your employee count versus contractor labor? I think you've mentioned that as kind of a key driver of productivity and efficiency going forward. And then in terms of the ball mill, has that been transported to the plant yet, or is that expected in Q1?

謝謝你。轉向 Terronera，目前的勞動力狀況如何？您的員工數量與承包商勞動力的數量是多少？我認為您已經提到這是未來生產力和效率的關鍵驅動因素。那麼，就球磨機而言，它是否已經被運送到工廠，或者預計在第一季運送到工廠？

Yeah, no, for sure. To answer the first question, so at December 31, we have 520 total employees and contractors. Of that 520, about 120 were direct employees. Through this year, we do expect to peak around 700 on site.

是的，不，當然。回答第一個問題，截至 12 月 31 日，我們共有 520 名員工和承包商。在這 520 名員工中，約 120 名是直接員工。今年，我們預計現場人數將達到 700 人左右。

And then with regards to our ball mill, it's a good question. I mean, I touched a lot on Q4 and what was happening at site. Our bill -- our SAG mill and our ball mill are actually already at site, and they have been placed. So it's been an exciting Q1, but we'll have a full update of Q1 generally in April from a construction standpoint.

關於我們的球磨機，這是一個很好的問題。我的意思是，我對第四季以及現場發生的事情有很多了解。我們的帳單——我們的半自磨機和球磨機實際上已經到達現場，並且已經放置完畢。所以這是一個令人興奮的第一季度，但從構建的角度來看，我們通常會在四月對第一季進行全面更新。

All right. Well, I really appreciate it. I'll turn it over. Best of luck.

好的。嗯，我真的很感激。我會把它翻過來。祝你好運。

Thanks, Lucas.

謝謝，盧卡斯。

Steven Silk, Stifel.

史蒂文·希爾克，斯蒂菲爾。

Hi, Dan and team. Congrats on a good quarter. My question is just more on Terronera and the underground rates. I think this was a critical path item, and great to hear they've come up. So notably, over the last quarter, can you just comment if those are tracking to your original plan or is there catch up to do there? Or are you seeing additional efficiencies that you hadn't counted on at this point in the transition? And just a little more color around data around how that's progressing. Thanks.

嗨，丹和團隊。恭喜季度表現良好。我的問題更多的是關於 Terronera 和地下費率。我認為這是一個關鍵的路徑項目，很高興聽到他們的出現。因此，值得注意的是，在上個季度，您能否評論一下這些是否符合您最初的計劃，或者是否有趕上的情況？還是您看到了在轉型過程中未曾預料到的額外效率？圍繞數據的進展情況，再多一點色彩。謝謝。

Yeah, it's a very good question, Steven. And our plans ultimately is about 4 meters of advance per critical heading per day. We are able to achieve that in Q4, and we've seen that in Q1.

是的，這是一個非常好的問題，史蒂文。我們的最終計劃是每個關鍵航向每天前進約 4 公尺。我們能夠在第四季度實現這一目標，並且我們在第一季已經看到了這一點。

There is always a little bit opportunity with redesigning of our mine plan. We continually redesign our mine plan. I'd almost call it dynamic just based on ground conditions, water flow, and number of things that we've done.

重新設計我們的採礦計劃總是有一些機會。我們不斷重新設計我們的採礦計劃。根據地面條件、水流和我們所做的事情的數量，我幾乎將其稱為動態的。

We've got a very seasoned team on site, and they've been phenomenal, I would say, over the last six months. So we are hitting our advance rate as planned to make sure we're in commissioning for Q4 of this year.

我們現場有一支經驗豐富的團隊，我想說，在過去的六個月裡，他們表現得非常出色。因此，我們正在按計劃達到提前進度，以確保我們能夠在今年第四季進行調試。

Perfect. Great to hear. That's it for me. Appreciate it.

完美的。很高興聽到。對我來說就是這樣。欣賞它。

Thanks, Steven.

謝謝，史蒂文。

Craig Hutchison, TD Securities.

克雷格‧哈奇森 (Craig Hutchison)，道明證券。

Hi, good morning, guys. Thanks for taking my question.

嗨，早上好，夥計們。感謝您提出我的問題。

Morning, Craig.

早安，克雷格。

Morning, Dan. Maybe a similar question to Steven just with regards to critical items. You guys mentioned the tailing storage facilities on the critical path. Any updates on where that stands? And you did mention that you're going to provide an update in Q1, but any numbers you can give us in terms of where the overall project sits here in mid-March, 43% at year end? Where are you in the 50s now? Anything on that would be helpful. Thanks.

早上好，丹。也許對史蒂文有類似的問題，只是關於關鍵項目。你們提到了關鍵路徑上的尾礦儲存設施。有關情況有任何更新嗎？您確實提到您將在第一季提供更新，但是您能給我們 3 月中旬整個專案的進度（年底為 43%）嗎？50多歲的你現在在哪裡？任何關於這方面的事情都會有幫助。謝謝。

Yeah, you're correct. And maybe to expand on Steven's question, right now, we see the critical path being mine development and the tailing storage facility. And probably the tailings storage facility originally on the outside of the build wasn't expect it to be a critical path item. But just on timing of when we got started on that lower platform and where the tailings dam is, it's right there with mine development.

是的，你是對的。也許要擴展史蒂文的問題，現在我們看到關鍵路徑是礦場開發和尾礦儲存設施。最初位於建築外部的尾礦儲存設施可能並不希望它成為關鍵路徑項目。但就我們開始在那個較低的平台和尾礦壩所在的時間而言，它就在那裡進行礦山開發。

I'm happy to say that in Q1, all our works begun on the TSF with the expectation that that work will be done midyear. So there's still some time around it. Again, productivity around the TSF starts off a little bit slow, but has picked up. And hopefully we can make it so it's no longer a critical path item and it remains to be the mine development.

我很高興地說，在第一季度，我們在 TSF 上開始了所有工作，預計工作將在年中完成。所以還有一段時間。同樣，TSF 的生產率一開始有點慢，但後來有所回升。希望我們能夠做到這一點，使其不再是關鍵路徑項目，而仍然是礦山開發。

Okay. And just overall progress, any updates from the 43% at year end?

好的。整體進展情況，與年底的 43% 相比有什麼更新嗎？

Yeah, yeah. I could say we originally thought 46%, and we adjusted it to the updated initial CapEx. And right now at December 31, we felt we're about 43%. Generally, we're adding 2% to 3% of efficiencies per month, and that is generally the plan. So we're probably sitting at the beginning of March, not mid-March here, but around 50%.

是啊是啊。我可以說我們最初認為是 46%，然後我們將其調整為更新後的初始資本支出。截至 12 月 31 日，我們認為這一比例約為 43%。一般來說，我們每月提高 2% 到 3% 的效率，這就是一般的計劃。所以我們可能是在 3 月初，而不是 3 月中旬，但大約是 50%。

I know Don Gray is on our line, our COO. Don, would you have any other color you'd like to add to that?

我知道我們的營運長唐·格雷（Don Gray）正在接聽我們的電話。唐，你還想添加其他顏色嗎？

Yeah. Thanks, Dan. So Craig, we're just just under 50%, and we'll have better visibility on that at the end of March. But things are moving really well at site, a lot of work going on on the mechanical and the upper platform. Like Dan said, we've set the mills and also starting to set pumps and flotation cells and things like that. So -- and the excavation is going well down on the lower platform area.

是的。謝謝，丹。克雷格，我們的進度略低於 50%，我們將在 3 月底對此有更好的了解。但現場一切進展順利，機械和上部平台正在進行大量工作。就像丹說的那樣，我們已經設置了磨機，也開始設置泵和浮選機之類的東西。因此，較低平台區域的挖掘工作正在順利進行中。

Okay, great. Maybe one last question for me. You guys are planning to draw down the debt facility this quarter. Is that still on track? Will it be the full amount or will it be sort of increments of the full amount?

好的，太好了。也許我還有最後一個問題。你們計劃在本季提領債務融資。那還在軌道上嗎？是全額還是全額的增量？

I'll take that one. This is Libby Senez. We are planning to draw down the first draw this month, but not the full amount.

我會接受那個。這是利比·塞內斯。我們計劃提取本月的第一次抽獎，但不是全額。

Okay. Thanks, guys.

好的。多謝你們。

Thanks, Craig.

謝謝，克雷格。

(Operator Instructions) Heiko Ihle, H.C. Wainwright.

（操作員說明）Heiko Ihle, H.C.溫賴特。

Can you guys hear me okay?

你們聽得到我說話嗎？

You sound phenomenal, Heiko.

你聽起來棒極了，Heiko。

I'm in my house. I don't know what happened earlier. So I hang up and dialed back in. So if this question was asked, my apologies in advance. Dan, earlier on this call in your prepared remarks, you mentioned early Q4 for commissioning. Leading into this, we're looking probably at October or maybe early November, so seven months away.

我在家裡。我不知道之前發生了什麼事。於是我掛斷電話並撥回。因此，如果有人問這個問題，我先道歉。丹，在這次電話會議的早些時候，您在準備好的發言中提到了第四季度初期的調試。在此之前，我們可能會考慮十月或十一月初，也就是七個月後。

Has that timeline changed at all? I just went through the February 12 press release and it also just states Q4. I mean, we probably had more like mid-Q4 in our model, and this is obviously quite a bit better. And if this timeline has changed, what exactly help move it forward, please?

這個時間表有改變嗎？我剛剛瀏覽了 2 月 12 日的新聞稿，它也只說明了第四季。我的意思是，我們的模型中可能有更多類似第四季中期的數據，這顯然要好一些。如果這個時間表發生了變化，請問什麼可以幫助推動它向前發展？

Heiko, we've always publicly said that we are Q4 commissioning. And we've never indicated whether that was going to be October, November, December, and I think that buys us a little bit of time. We initially had planned in our feasibility study three to six months commissioning phase. And in our model right now, maybe it's a little bit shorter than the six months and closer to that three months. But the expectation at the outset since April 2023 until today, as we've publicly been saying, it's a Q4 commissioning for 2024.

Heiko，我們一直公開表示我們正在進行第四季的調試。我們從未表明是十月、十一月還是十二月，我認為這為我們贏得了一點時間。我們最初在可行性研究中規劃了三到六個月的調試階段。在我們現在的模型中，也許它比六個月短一點，更接近三個月。但從一開始的預期是從 2023 年 4 月到今天，正如我們公開所說，這是 2024 年第四季的調試。

Got it. Okay. Building on that, I'm just thinking out loud here, the cost curve at Terronera, obviously has some sort of ramp up associated with it. In your internal model, has anything with this ramp-up curve changed compared to where you maybe were a year or two ago before it really started getting fully built?

知道了。好的。在此基礎上，我只是在這裡大聲思考，Terronera 的成本曲線顯然有某種與之相關的上升。在您的內部模型中，與一兩年前真正開始完全建造之前的情況相比，這條上升曲線有什麼變化嗎？

Maybe I'm not fully understanding your question. So with the ramp up of the initial CapEx going from $230 million to $270 million, you're asking about the impact on our model?

也許我沒有完全理解你的問題。那麼，隨著初始資本支出從 2.3 億美元增加到 2.7 億美元，您想問這對我們模型的影響嗎？

No, no. Once it's actually in production later this year. With -- I assume, as efficiencies at site get added within two, three, four quarters as the whole thing ramps up, anything you're seeing -- anything that changed internally over the past couple of months and what you're seeing and the costs for the ramp up.

不，不。一旦它在今年晚些時候真正投入生產。我認為，隨著整個事情的進展，現場的效率會在兩個、三個、四個季度內得到提高，你所看到的任何事情——過去幾個月內部發生的任何變化以及你所看到的和提升成本。

Yeah, to be honest --

是的，說實話--

Like the cost per ounce.

就像每盎司的成本一樣。

Yeah, we haven't come out publicly and from an internal standpoint on operating costs. So clearly, from our existing operations, we've seen operating cost pressures increase because of the Mexican peso, because of the inflation rate. Publicly in our feasibility study, we put out an $87 cost per ton on the operation. Again, that was at the 1,750 ton per day.

是的，我們還沒有從內部角度公開表達營運成本的問題。很明顯，從我們現有的業務來看，我們看到營運成本壓力因墨西哥比索和通貨膨脹率而增加。在我們的可行性研究中，我們公開提出每噸作業的成本為 87 美元。同樣，那是每天 1,750 噸。

When we announced the construction decision for Terronera, we talked about the 2,000 ton per day scenario, which brought our cost per ton down to $80. Now clearly, with the pressures that we've seen across the space, that $80 per ton's probably not going to be $80 per ton. Increase in steel prices, increase in reagents is going to push that up.

當我們宣布 Terronera 的建設決定時，我們談到了每天 2,000 噸的方案，這使我們每噸的成本降至 80 美元。現在很明顯，鑑於我們在整個領域看到的壓力，每噸 80 美元可能不會是每噸 80 美元。鋼材價格的上漲、試劑的增加將推高這一點。

We haven't remodeled all that. As we approach operations and going into commercial production, we'll probably update the market at that time with regards to those. But just knowing the operations and where those pressures have been, I don't think it will be significant or change the outcome of what we do at Terronera.

我們還沒有改造這一切。當我們接近營運並進入商業生產時，我們可能會及時更新市場相關資訊。但只要了解營運情況以及這些壓力在哪裡，我認為這不會產生重大影響，也不會改變我們在 Terronera 所做工作的結果。

Perfect. No, that's fair. Apologies for the bad connection again, and I'll talk to you soon.

完美的。不，這很公平。再次對連線不良表示歉意，我很快就會與您聯繫。

Thank you. No apologies necessary.

謝謝。無需道歉。

This concludes the question-and-answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks.

問答環節到此結束。我想將會議轉回丹·迪克森（Dan Dickson）發表閉幕詞。

Well, thanks, operator, and thanks for everybody attending this year's 2023 earnings call. Hopefully 2024 turns out to be a wonderful year. I know in the last two weeks we've had a real push on gold prices, and hopefully that translates into the silver price.

好吧，謝謝運營商，也感謝參加今年 2023 年財報電話會議的所有人。希望 2024 年會是美好的一年。我知道過去兩週我們確實推動了金價上漲，希望這能轉化為白銀價格。

I know we're still sitting close to 90:1 ratio. And ultimately, we see some love in the gold price that will translate over to the silver price. It's our job to execute this year on Terronera. And I think we'll have a very wonderful 2024 and hopefully beyond that. Thank you and have a good day.

我知道我們的比例仍然接近 90:1。最終，我們看到對黃金價格的一些熱愛將轉化為白銀價格。今年我們的工作就是在 Terronera 上執行。我認為我們將度過一個非常美好的 2024 年，並希望能夠超越這一年。謝謝你，有美好的一天。

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。