Fortuna Mining Corp (FSM) 2022 Q4 法說會逐字稿

Greetings, and welcome to the Fortuna Silver Mines Fourth Quarter and Full Year 2022 Financial and Operational Results Call.

您好，歡迎來到 Fortuna Silver Mines 第四季度和 2022 年全年財務和運營業績電話會議。

(Operator Instructions)

（操作員說明）

I will now turn the conference over to your host, Mr. Carlos Baca, Director of Investor Relations. Please go ahead.

我現在將會議轉交給您的主持人，投資者關係總監 Carlos Baca 先生。請繼續。

Thank you, Ali. Good morning, ladies and gentlemen. I would like to welcome you to the Fortuna Silver Mines Fourth Quarter and Full Year 2022 Financial and Operational Results Call.

謝謝你，阿里。早上好，女士們，先生們。歡迎您參加 Fortuna Silver Mines 第四季度和 2022 年全年財務和運營業績電話會議。

Hosting the call today on behalf of Fortuna will be Jorge Alberto Ganoza, President and Chief Executive Officer; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; David Whittle, Chief Operating Officer, West Africa; and Paul Weedon, Senior Vice President, Exploration.

今天代表 Fortuna 主持電話會議的是總裁兼首席執行官 Jorge Alberto Ganoza；首席財務官 Luis Dario Ganoza； Cesar Velasco，拉丁美洲首席運營官；西非首席運營官 David Whittle；和勘探高級副總裁 Paul Weedon。

Today's earnings call presentation will be available on our website, fortunasilver.com. As a reminder, statements made during this call are subject to the reader advisories included in yesterday's news release and in the earnings call presentation, financial figures contained in the presentation and discussed in today's call are presented in U.S. dollars, unless otherwise stated.

今天的收益電話會議演示將在我們的網站 fortunasilver.com 上發布。提醒一下，在本次電話會議期間發表的聲明以昨天的新聞稿和財報電話會議演示中的讀者建議為準，除非另有說明，否則演示文稿中包含的和今天電話會議中討論的財務數據均以美元表示。

Before I turn over the call to Jorge, I would like to indicate that this earnings call contains forward-looking information that is based on the company's current expectations, estimates and beliefs. This forward-looking information is subject to a number of risks, uncertainties and other factors. Actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.

在我將電話轉給豪爾赫之前，我想指出本次財報電話會議包含基於公司當前預期、估計和信念的前瞻性信息。該前瞻性信息受許多風險、不確定性和其他因素的影響。實際結果可能與前瞻性信息中的結論、預測或預測存在重大差異。如前瞻性信息中所反映的那樣，在得出結論或做出預測或預測時應用了某些重大因素或假設。

Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in the company's annual information form and MD&A, which are publicly available on SEDAR.

有關可能導致實際結果與前瞻性信息中的結論、預測或預測存在重大差異的重大因素的其他信息，以及在得出結論或做出預測或預測時所應用的重大因素或假設，如前瞻性信息中所反映的前瞻性信息包含在公司的年度信息表和 MD&A 中，可在 SEDAR 上公開獲取。

The company assumes no obligation to update such forward-looking information in the future, except as required by law. I would now like to turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer and Co-Founder of Fortuna.

除非法律要求，否則公司不承擔在未來更新此類前瞻性信息的義務。我現在想把電話轉給 Fortuna 的總裁、首席執行官兼聯合創始人 Jorge Alberto Ganoza。

Thank you, Carlos, and greetings to all. Safety first, we closed the year with a strong trend of improvement on key safety performance indicators, which year-over-year continue coming down as a result of multiple initiatives implemented across the business. Our KPI for total recordable injury rate closed the year at 2.3, down from 3.2 in 2021 and below the industry average of 2.9. Lost time injury rate also showed a strong improvement ending the year at 0.39, down from 0.53 in 2021. We recorded 5 lost time injuries in the year, down from 6 in 2021. However, all this work was tainted by a fatal accident at our Lindero mine in January 2022. Safety is a precondition for business, and we remain firmly committed to a zero-harm work environment. On December '21, we made public or position statement on the adoption of a global industry standard for tailings management. Our commitment to generate shared value over the long term for our stakeholders involves adapting strategically our business practices and standards, enabling us to better cope with risks, opportunities and heightened expectations.

謝謝你，卡洛斯，並向所有人致以問候。安全第一，我們以關鍵安全績效指標的強勁改善趨勢結束了這一年，由於在整個企業實施了多項舉措，這些指標同比繼續下降。我們的可記錄總傷害率 KPI 從 2021 年的 3.2 下降至 2.3，低於行業平均水平 2.9。失時工傷率也從 2021 年的 0.53 下降到年底的 0.39。我們在這一年記錄了 5 起失時工傷，低於 2021 年的 6 起。但是，所有這些工作都因我們的致命事故而受到污染2022 年 1 月的 Lindero 礦。安全是開展業務的先決條件，我們始終堅定地致力於營造零傷害的工作環境。 12 月 21 日，我們就採用全球尾礦管理行業標準發表了公開聲明或立場聲明。我們承諾為我們的利益相關者創造長期共享價值，包括戰略性地調整我們的業務實踐和標準，使我們能夠更好地應對風險、機遇和更高的期望。

We consider tailings management to be paramount to responsible mining and the adoption of GISTM allows us to refine our approach to safe tailings management in a way to ensure operational excellence. On March 14, we informed of positive news coming from Mexico with the court granting a permanent injunction to our San Jose mine, effectively protecting the 12-year environmental impact authorization of the mine.

我們認為尾礦管理對於負責任的採礦至關重要，而 GISTM 的採用使我們能夠以確保卓越運營的方式改進我們的安全尾礦管理方法。 3月14日，我們從墨西哥傳來利好消息，法院對我們的San Jose礦山發出永久禁令，有效保護該礦山長達12年的環境影響授權。

Cesar, our Chief Operating Officer for LATAM, will expand on this later in the presentation. Our business generated adjusted net income of $7.2 million or $0.02 per share in the fourth quarter, in line with analyst consensus. And for the full year, $42.4 million or $0.15 per share, slightly ahead of the analyst consensus of $0.14. Net income however, was negatively impacted by noncash impairment charges, net of taxes, adding to $164 million coming from ore Yaramoko, Lindero and San Jose mines. Luis, our CFO, will expand on the impairment analysis drivers later in the presentation. We generated free cash flow from ongoing operations of $4.4 million in Q4 and a healthy $69.1 million for the year, this after servicing sustaining CapEx and corporate expense.

我們拉美地區的首席運營官 Cesar 將在稍後的演講中對此進行詳述。我們的業務在第四季度產生了 720 萬美元或每股 0.02 美元的調整後淨收入，符合分析師的一致預期。全年為 4240 萬美元或每股 0.15 美元，略高於分析師一致預期的 0.14 美元。然而，淨收入受到稅後非現金減值費用的負面影響，增加了來自 Yaramoko、Lindero 和 San Jose 礦山的 1.64 億美元。我們的首席財務官 Luis 將在稍後的演示中詳細介紹減值分析驅動因素。我們在第四季度從持續運營中產生了 440 萬美元的自由現金流，在為持續的資本支出和公司支出提供服務之後，全年產生了健康的 6910 萬美元。

Production for the year was well within the range provided in our 2022 guidance. We delivered 259,000 ounces of gold and 6.9 million ounces of silver or 402,000 ounces of gold equivalent. Measured against 2021, Fortuna is on an exciting growth path. We have grown our gold equivalent production from 305,000 ounces of gold to 402,000 ounces in 2022. And this year, we anticipate further growth to approximately 450,000 ounces in our guidance.

今年的產量完全在我們 2022 年指南中提供的範圍內。我們交付了 259,000 盎司黃金和 690 萬盎司白銀或 402,000 盎司黃金當量。與 2021 年相比，Fortuna 正走在令人興奮的增長道路上。到 2022 年，我們的黃金當量產量已從 305,000 盎司增加到 402,000 盎司。今年，我們預計在我們的指導下將進一步增長至約 450,000 盎司。

Despite persistent inflationary pressures throughout 2022, all of our mines performed within the AISC range provided in our annual guidance. The only exception was the Lindero mine, which recorded AISC of $1,142 per ounce of gold, marginally above guidance. Main consumables such as diesel, cyanide, cement and explosives have experienced increased costs to varying degrees depending on the mine and location. For example, at our Lindero mine in Argentina, year-over-year, cyanide costs increased by an average of 34% and our Yaramoko mine in Burkina Faso 44%. At our Caylloma mine in Peru, year-over-year, diesel costs increased by an average of 60% and at our Lindero mine 34%.

儘管整個 2022 年通貨膨脹壓力持續存在，但我們所有礦山的表現都在我們年度指南中提供的 AISC 範圍內。唯一的例外是 Lindero 礦，該礦記錄的 AISC 為每盎司黃金 1,142 美元，略高於指導值。柴油、氰化物、水泥、炸藥等主要消耗品，因礦山和地點不同，成本均有不同程度的上漲。例如，在我們位於阿根廷的 Lindero 礦山，氰化物成本同比平均增長 34%，而我們在布基納法索的 Yaramoko 礦山則增長 44%。在我們位於秘魯的 Caylloma 礦，柴油成本同比平均增長 60%，在我們的 Lindero 礦則增長 34%。

While we have observed easing of inflationary pressures thus far, conditions remain challenging. Annualized cost increments at our mines over the past 2 to 3 years range from 6% at Caylloma to 8% at San Jose, 12% at Lindero and 17% at Yaramoko. As per World Gold Council figures up to Q3 2022, margin compression for the industry can be observed showing an 11% annualized increase in AISC inflation since 2020.

迄今為止，雖然我們觀察到通脹壓力有所緩解，但形勢仍然充滿挑戰。過去 2 至 3 年，我們礦山的年化成本增量從 Caylloma 的 6% 到 San Jose 的 8%、Lindero 的 12% 和 Yaramoko 的 17% 不等。根據世界黃金協會截至 2022 年第三季度的數據，可以觀察到該行業的利潤率壓縮，表明自 2020 年以來 AISC 通貨膨脹年化增長率為 11%。

In Q3 2022, 50% of global mine supply was produced at an all-in sustaining cost of approximately $1,300 per ounce. Only 8, 7 quarters ago, that figure was $1,100. For flagship Séguéla mine construction in Cote d'Ivoire, West Africa, remains a primary focus for management. For the second half of 2023, we have provided production guidance for Séguéla of 60,000 to 70,000 ounces of gold at an all-in sustaining cost in the range of $801 -- from $800 -- ranging from $880 to $1,080 per ounce. That's all in. David will further expand on Séguéla later on the presentation.

2022 年第三季度，全球 50% 的礦產供應的總維持成本約為每盎司 1,300 美元。就在 8、7 個季度前，這個數字是 1,100 美元。對於位於西非科特迪瓦的旗艦 Séguéla 礦山建設，仍然是管理的主要重點。對於 2023 年下半年，我們為 Séguéla 提供了 60,000 至 70,000 盎司黃金的生產指導，總維持成本在 801 美元（800 美元）到 880 美元到 1,080 美元/盎司之間。就這些了。David 將在稍後的演示中進一步擴展 Séguéla。

And on the exploration front, I would highlight our success with the delivery of growth in resources at December deposit 1 of 6 deposits making the Séguéla mineral inventory. On December 5, we reported a new Sunbird open pit resource estimate of 279,000 gold ounces at an average grade of 2.66 grams per tonne in indicated category, plus 0.5 million ounces of gold at an average grade of 3.7 grams per tonne in the inferred category.

在勘探方面，我要強調的是我們在 12 月的 6 個礦床中的第 1 個礦床實現了資源增長的成功，使 Séguéla 礦產庫存。 12 月 5 日，我們報告了新的 Sunbird 露天礦資源估計為 279,000 盎司黃金，平均品位為 2.66 克/噸，推斷類別黃金為 50 萬盎司，平均品位為 3.7 克/噸。

On Monday 13, we reported fresh results from the Sunbird infill program. Paul Weedon our SVP exploration is here with us and can provide an exploration update. So Paul, do you want to go ahead, please?

13 日星期一，我們報告了 Sunbird infill 計劃的最新結果。 Paul Weedon 我們的 SVP 探索與我們同在，可以提供探索更新。保羅，你想繼續嗎？

Yes. Thank you, Jorge. Some of the latest Séguéla deposits and we're shaping up as potentially the largest. The current focus at Sunbird is on the conversion drilling to upgrade and expand the 506,000 ounces of inferred by the end of Q2 2023. We've currently got 2 drill rigs turning on that program. I've seen in the news release this past Monday, results the data are consistent with or better than what was currently model a then the optimized shell. We've also extended mineralization of approximately another 100 meters furthermore and beyond the optimization show with several high-grade interceptions, such as the 5.6 meters of 12 grams gold from 28 meters downhole in hole SGRC1566.

是的。謝謝你，豪爾赫。一些最新的 Séguéla 礦床，我們正在成為可能最大的礦床。 Sunbird 目前的重點是轉換鑽探，以升級和擴大到 2023 年第二季度末推斷的 506,000 盎司。我們目前有 2 台鑽機正在啟動該計劃。我在上週一的新聞稿中看到，結果數據與當前優化外殼的模型一致或更好。我們還通過多次高品位截獲，例如從 SGRC1566 孔 28 米處的井下開採 5.6 米 12 克黃金，進一步將礦化範圍進一步擴大了約 100 米，超出了優化顯示範圍。

In addition, debt drilling went further north to extend this high-grade search to the South extended high-grade shoots and will resume in Q3. Potentially setting up the foundation for a future underground development. In our non Séguéla, divisional exploration will continue into Q3 with the recent recovered high-grade Kestral, Badior and Barana prospects, which we highlighted at December 5 news release. And then further target generation will continue on its Séguéla more than 30 known drills remaining to be tested.

此外，債務鑽探進一步向北延伸，將這種高品位搜索擴展到南部，並將在第三季度恢復。可能為未來的地下開發奠定基礎。在我們的非 Séguéla，分部勘探將繼續到第三季度，我們在 12 月 5 日的新聞發布會上強調了最近恢復的高品位 Kestral、Badior 和 Barana 前景。然後進一步的目標生成將繼續在其 Séguéla 上進行，還有 30 多個已知的鑽頭有待測試。

Moving further and -- into Burkina Faso, exploration work around Yaramoko continues to generate new numbers. Underground drill test in the Western strike extensions to the Zone 55 mineralization has extensive mineralization approximately 100 meters further beyond the current resource envelope and drilling this continue in those areas.

進一步進入布基納法索，Yaramoko 周圍的勘探工作繼續產生新的數字。在 55 區礦化區的西部走向延伸中進行的地下鑽探測試表明，礦化範圍已超出當前資源範圍約 100 米，因此在這些地區繼續進行鑽探。

Moving to Peru, currently Caylloma is due to test the depth extensions of the 4-kilometer long Animas Vein later in Q2, Starting down debt projections of all shoots 1 and 3, some 200 to 400 meters below the previous drilling in the previous mining modeling and current mine workings. Additionally, regional exploration work around Caylloma continues to highlight the prospectivity, including the emerging Antacollo area. And then finally, in Mexico, work at San Jose, continues to test the depth extensions in the Northern strike extent as well as planned exploration work announced Taviche work in Oeste. Jorge, back to you.

轉到秘魯，目前 Caylloma 將在第二季度晚些時候測試 4 公里長的 Animas Vein 的深度延伸，開始降低所有 1 號和 3 號井的債務預測，比先前採礦模型中的先前鑽探低約 200 至 400 米和當前的礦井作業。此外，Caylloma 周圍的區域勘探工作繼續突出前景，包括新興的 Antacollo 地區。最後，在墨西哥，在聖何塞的工作繼續測試北部走向范圍的深度延伸以及計劃中的勘探工作宣佈在 Oeste 的 Taviche 工作。豪爾赫，回到你身邊。

Thank you, Paul. We'll move on to update and from the Chief Operating Officers. We can start with LatAm. Cesar, please.

謝謝你，保羅。我們將繼續更新首席運營官的信息。我們可以從拉美開始。塞薩爾，請。

Thank you, Jorge. And as you have already mentioned, last Tuesday, Fortuna announced that the Mexican Federal Administrative Court granted a favorable permanent injunction to Minera Cuzcatlan, which allows the San Jose mine to continue operating under the terms of the original 12-year environmental impact assessment permit which the court reconfirmed in November of 2022.

謝謝你，豪爾赫。正如你已經提到的，上週二，Fortuna 宣布墨西哥聯邦行政法院向 Minera Cuzcatlan 授予有利的永久禁令，允許聖何塞礦山根據最初的 12 年環境影響評估許可條款繼續運營，該許可法院於 2022 年 11 月再次確認。

This permanent injunction will remain in effect, allowing for continued operations at the San Jose mine up until the court rules in response to the resolution issued in January 2023 by the SEMARNAT to revoke San Jose's EIA. Although uncertain, we expect that it could be in 1.5 to 2 years.

這項永久禁令將繼續有效，允許聖何塞礦繼續運營，直到法院根據 SEMARNAT 於 2023 年 1 月發布的撤銷聖何塞環境影響評估的決議做出裁決。雖然不確定，但我們預計它可能會在 1.5 到 2 年內出現。

Moving down to Peru despite social unrest and numerous road locates throughout the country, operations at the Caylloma mine have been unaffected and 2023 annual production guidance is the remaining. I will now discuss the original results of our 3 operating mines in Latin America. The fourth quarter of 2022, marked the fifth consecutive quarter of consolidated gold production of over 35,000 ounces. For the full year, Latin America achieved record gold production of 153,319 ounces, a 14% increase compared to 2021.

儘管社會動盪且全國各地有許多道路，但繼續前往秘魯，Caylloma 礦的運營並未受到影響，2023 年的年度生產指導仍然存在。我現在將討論我們在拉丁美洲的 3 個運營礦山的原始結果。 2022 年第四季度，連續第五個季度綜合黃金產量超過 35,000 盎司。全年，拉丁美洲的黃金產量達到創紀錄的 153,319 盎司，比 2021 年增長 14%。

Consolidated silver production was 6.9 million ounces, achieving the higher end of annual guidance. All 3 mines delivered production results in line with their mining plans and mineral reserves estimates.

綜合白銀產量為 690 萬盎司，達到年度指導的上限。所有 3 個礦山都交付了符合其採礦計劃和礦產儲量估計的生產結果。

In Argentina, the Lindero Mine delivered another consistent year with gold production totaling 118,000 ounces. This represents a 14% increase from 2021 and is directly related to an improvement in the performance of the 3-stage crushing and stacking system. Throughout 2022, management implemented numerous high-impact optimization initiatives to better capture efficiencies, allowing the operation to offset some of the cost increases from inflationary pressures on key consumables.

在阿根廷，Lindero 礦山再次取得穩定的年度黃金產量，總產量為 118,000 盎司。這比 2021 年增加了 14%，與三級破碎和堆垛系統性能的提高直接相關。在整個 2022 年，管理層實施了許多具有重大影響的優化計劃，以更好地提高效率，從而使運營能夠抵消關鍵消耗品的通貨膨脹壓力帶來的部分成本增加。

These initiatives included improving the efficiency of the SART plant, subsequently decreasing consumption of fresh makeup cyanide and sulfuric acid. And the optimization of the mine fleet tracking distance, reducing diesel consumption and improving productivity. In the last quarter of 2022, a project to improve the recirculation circuit of the HPGR was initiated with the aim of reducing gran -- granulometry and improving gold recovery of ore placed at the leach pad.

這些舉措包括提高 SART 工廠的效率，隨後減少新鮮補充氰化物和硫酸的消耗。以及礦山車隊跟踪距離的優化，降低柴油消耗，提高生產率。 2022 年最後一個季度，啟動了一個改進 HPGR 再循環迴路的項目，目的是降低粒度並提高放置在浸出墊的礦石的金回收率。

In Mexico, the San Jose mines silver and gold production for 22 -- 2022 totaled 5.8 million ounces of silver and 34,124 ounces of gold, achieving the upper end and midpoint range of annual guidance, respectively. Average head grades for silver and gold for the year were 191 grams per tonne of silver and 1.14 grams per tonne of gold, a 9% and 12% decrease, respectively, when compared to 2021, but remaining in line with the mines, mining sequence and mineral reserve estimates. Last year, mine production using sublevel stocking methods represented 35% of ore sent to the processing plant and for 2023, it is expected to reach 60%.

在墨西哥，聖何塞礦山 22 - 2022 年的白銀和黃金產量總計 580 萬盎司和 34,124 盎司黃金，分別達到年度指導的上限和中點範圍。全年白銀和黃金的平均原礦品位分別為每噸白銀 191 克和每噸黃金 1.14 克，與 2021 年相比分別下降 9% 和 12%，但與礦山、開採順序保持一致和礦產儲量估計。去年，使用分級堆放方法的礦山產量佔送往加工廠的礦石的 35%，到 2023 年，這一比例預計將達到 60%。

In Peru, the Caylloma mine continued to deliver steady production in 2022, producing 1.1 million ounces of silver, exceeding the upper range of annual guidance by 4%. Zinc and lead production totaled 46.2 million pounds and 34.6 million pounds, respectively, both exceeding the upper range of annual guidance. Base metal production benefited from higher mill throughput during the year and material mined at the level 16 of the Animas vein, allowing for a significant improvement in ore grade and oxide sulfide ratios, therefore, boosting plant recovery. Back to you, Jorge.

在秘魯，Caylloma 礦山在 2022 年繼續穩定生產，生產了 110 萬盎司白銀，超出年度指導上限 4%。鋅和鉛產量分別為 4620 萬磅和 3460 萬磅，均超過年度指導範圍的上限。賤金屬生產受益於年內更高的磨機產量和在 Animas 礦脈第 16 層開采的材料，使礦石品位和氧化物硫化物比率顯著提高，從而促進工廠回收。回到你身邊，豪爾赫。

Thank you, Cesar. We can move on to David and West Africa.

謝謝你，塞薩爾。我們可以繼續前往大衛和西非。

Thanks, Jorge. Operations in West Africa continued solid performance in 2022 with Yaramoko delivering gold production of over 106,000 ounces as a point of annual guidance. Séguéla's construction is struggling well with respect to our schedules and budgets with first gold ore projected for mid-2023, ongoing worldwide inflationary and supply chain pressures did not impact budgetary expectations at Yaramoko nor the construction progress at Séguéla. Recent political disturbances in Burkina Faso have had no impact on Yaramoko's operations. Safety performance at the Yaramoko mine was strong. Unfortunately, LTI incidents took place in the fourth quarter. The Yaramoko underground grade control and brownfield exploration program continued with encouraging outcome, expending our planned mining boundaries on the western side of the ore bit.

謝謝，豪爾赫。西非的業務在 2022 年繼續保持穩健表現，Yaramoko 提供的黃金產量超過 106,000 盎司作為年度指導點。 Séguéla 的建設在我們的進度和預算方面進展順利，預計第一批金礦將於 2023 年年中開採，持續的全球通貨膨脹和供應鏈壓力並未影響 Yaramoko 的預算預期或 Séguéla 的建設進度。布基納法索最近的政治動盪並未對 Yaramoko 的業務造成影響。 Yaramoko 礦山的安全表現非常出色。不幸的是，LTI 事件發生在第四季度。 Yaramoko 地下品位控制和棕地勘探計劃繼續取得令人鼓舞的成果，擴大了我們計劃在礦位西側的採礦邊界。

Construction progress at Séguéla continues to track on -- sorry, continued on track and on budget. As of the end of February, the project was 93% complete with approximately $160 million incurred on the initial $173 million capital budget. The water storage stands complete and is currently storing sufficient water for commissioning and operating activities. In the processing plan, structural mechanical and piping nonelectrical and instrumentation installations and nearing completion, with energization and commissioning activity about to initiate.

Séguéla 的施工進度繼續跟踪 - 抱歉，繼續跟踪並在預算內。截至 2 月底，該項目已完成 93%，最初的 1.73 億美元資本預算產生了約 1.6 億美元。儲水站已完工，目前正在儲存足夠的水用於調試和運營活動。在加工計劃中，結構機械和管道非電氣和儀表安裝接近完成，即將啟動通電和調試活動。

First ore to the crusher or commissioning is expected in early April, followed by first ore to the mill later in the month. In parallel with the excellent progress on the ground, operational ready -- readiness scopes are advancing well. The mining tactical, processing and maintenance teams are being recruited with all senior management positions currently filled. Motor angle and mining contractor continued with on-site mobilization and establishment activities, together with the recruitment of key positions and equipment operators.

預計 4 月初將第一批礦石送至破碎機或調試，隨後將在本月晚些時候將第一批礦石送至工廠。在實地取得出色進展的同時，作戰就緒——準備範圍也在取得良好進展。正在招聘採礦戰術、加工和維護團隊，所有高級管理職位目前都已填補。電機角度和採礦承包商繼續進行現場動員和建立活動，同時招聘關鍵職位和設備操作員。

The first phase of grade control drilling has been completed with more than 12,000 meters drilled. Initial results are bearing to align closely with the current geological models. As of the end of February, cleaning of the Antenna pit has occurred and excavation of waste is taking place with over 60,000 cubic meters of waste stripped and being utilized for the construction of the ROM pad. Preparations are currently underway for the start of the blasting operations in order for the first ore to be available for the commissioning of this. San Jose. Back to you, Jorge.

已完成一期品控鑽探，鑽探深度超過12000米。初步結果與當前的地質模型密切相關。截至 2 月底，天線坑的清潔工作已經完成，廢物挖掘工作正在進行中，超過 60,000 立方米的廢物被剝離並用於建造 ROM 墊。目前正在進行爆破作業開始的準備工作，以便第一批礦石可用於爆破作業。聖荷西。回到你身邊，豪爾赫。

Thank you, David. The team does a good job keeping our website updated on the construction gallery for Séguéla. So I invite you to to visit the website and the construction gallery. So Luis, do you want to give us a briefing on the financials?

謝謝你，大衛。該團隊做得很好，使我們的網站在 Séguéla 的施工畫廊上保持更新。因此，我邀請您訪問網站和建築畫廊。路易斯，你想給我們介紹一下財務狀況嗎？

Yes. Thank you. I will start addressing the impairments we have recorded in Q4. We recorded total impairment charges, as Jorge mentioned, of $188.8 million before tax and $164.5 million net of tax. At Yaramoko, we have recorded an impairment charge of $103.5 million before tax. The impairment is related to the write-off of exploration and evaluation assets of $60 million and lower expected cash flows as a result of higher costs and lower reserves from the elimination of crown pillar recoveries from our reserve base.

是的。謝謝。我將開始解決我們在第四季度記錄的減值問題。正如豪爾赫提到的，我們記錄的減值費用總額為稅前 1.888 億美元和稅後 1.645 億美元。在 Yaramoko，我們記錄了 1.035 億美元的稅前減值費用。減值與註銷 6000 萬美元的勘探和評估資產以及由於從我們的儲備基礎中消除皇冠支柱回收導致成本增加和儲備減少導致的預期現金流量減少有關。

At Lindero, we have recorded an impairment charge of $70.2 million before tax. The impairment is related to lower expected cash flows as a result of higher costs to a large extent related to inflationary pressures seen throughout 2022 and the effect of higher discount rates. At San Jose, we have recorded an impairment charge of $9.1 million before tax. The impairment is related to freight costs as well as capitalized exploration expenses over the past few years which haven't fully replace depletion. Also contributing to the impairment is the fact that the partial replacement of depletion we have seen -- has been at a lower head grade compared to the previous average head grade of the reserve.

在 Lindero，我們記錄了 7020 萬美元的稅前減值費用。減值與較低的預期現金流量有關，這是由於較高的成本在很大程度上與整個 2022 年的通脹壓力和較高貼現率的影響有關。在聖何塞，我們記錄了 910 萬美元的稅前減值費用。減值與運費以及過去幾年未能完全取代損耗的資本化勘探費用有關。造成減值的另一個原因是，我們所看到的部分替代枯竭 - 與之前的平均儲備品位相比，其品位較低。

As a result of the impairment, for Q4 2022, we recorded a net loss of $160.4 million. After adjusting for the impairment and a write-down of ore stockpiles at the Lindero mine of $3.8 million, adjusted net income was $7.2 million compared to $29.1 million in Q4 2021. The reduction in adjusted net income was mainly due to lower sales volume, lower silver prices and higher costs year-over-year across our operations. The lower volumes were largely in line with our mine plan. EBITDA for the quarter was $55.8 million, a $33 million reduction over Q4 2021, as explained before due mainly to lower sales of $34 million.

由於減值，我們在 2022 年第四季度錄得 1.604 億美元的淨虧損。在對 Lindero 礦的減值和減記 380 萬美元的礦石庫存進行調整後，調整後的淨收入為 720 萬美元，而 2021 年第四季度為 2910 萬美元。調整後的淨收入減少的主要原因是銷量下降、銷量下降白銀價格和我們的運營成本逐年上升。較低的產量在很大程度上符合我們的礦山計劃。本季度的 EBITDA 為 5580 萬美元，比 2021 年第四季度減少 3300 萬美元，如前所述，這主要是由於銷售額減少 3400 萬美元。

Free cash flow from ongoing operations, that is after CapEx at our operating mines and corporate expenses was $4.4 million compared to $46.8 million in Q4 2021. The drop in free cash flow is consistent with the reduction in EBITDA and higher CapEx execution quarter-over-quarter of $5 million.

持續運營產生的自由現金流（扣除我們運營礦山的資本支出和公司支出後）為 440 萬美元，而 2021 年第四季度為 4680 萬美元。自由現金流的下降與 EBITDA 的減少和更高的資本支出執行季度一致500 萬美元的季度。

For the full year, we have recorded a net loss of $135.9 million compared to a net gain of $59.4 million in 2021. The loss is explained by the impairment charges as previously discussed. After adjusting for impairment charges and other nonrecurring items, adjusted net income for the year was $42.6 million compared to $106 million in 2021. A decrease of $60 million in adjusted net income was a result of lower EBITDA of $31 million, higher depreciation and depletion of $50 million and lower taxes of $25 million.

全年，我們錄得淨虧損 1.359 億美元，而 2021 年淨收益為 5940 萬美元。如前所述，虧損由減值費用解釋。調整減值費用和其他非經常性項目後，本年度調整後淨收入為 4260 萬美元，而 2021 年為 1.06 億美元。調整後淨收入減少 6000 萬美元，原因是 EBITDA 減少 3100 萬美元，折舊和損耗增加5000 萬美元和 2500 萬美元的減稅。

Outside of the impairment charges, the main items of adjustment to our adjusted net income in the year were $8 million of ore stockpile inventory write-downs and $5.3 million write-offs of mineral properties.

除減值費用外，我們今年調整後淨收入的主要調整項目是 800 萬美元的礦石庫存減記和 530 萬美元的礦產減記。

Our free cash flow from operations for the full year 2022 was $69.2 million, down $17 million from the $86 million recorded in 2021. The reduction in free cash flow was consistent with lower EBITDA of $35 million higher CapEx of $25 million partially offset by lower taxes paid and changes in working capital.

我們 2022 年全年的運營自由現金流為 6920 萬美元，比 2021 年記錄的 8600 萬美元減少了 1700 萬美元。自由現金流的減少與 EBITDA 降低 3500 萬美元、資本支出增加 2500 萬美元相一致，部分被較低的稅收抵消營運資金的支付和變化。

In 2022, we converted 28% of EBITDA into free cash flow compared to 31% in 2021. On our balance sheet and liquidity position, in Q4, we increased our corporate facility by $50 million to $250 million, which at the end of the year puts us in a total liquidity position of $150 million comprised of $80 million in cash and cash equivalents and $70 million undrawn under the credit facility. Our total financial debt outstanding as of the end of the year was $226 million and $146 million net of cash. This is an increase of $60 million and $87 million over year-end 2021, respectively.

2022 年，我們將 28% 的 EBITDA 轉化為自由現金流，而 2021 年這一比例為 31%。在我們的資產負債表和流動性狀況方面，在第四季度，我們將公司融資增加了 5000 萬美元，達到 2.5 億美元，這在年底使我們的總流動資金頭寸為 1.5 億美元，其中包括 8000 萬美元的現金和現金等價物以及 7000 萬美元的信貸額度未動用資金。截至年底，我們的未償金融債務總額為 2.26 億美元，扣除現金後為 1.46 億美元。這比 2021 年底分別增加了 6000 萬美元和 8700 萬美元。

During the year, we spent $251 million on additions to mineral properties, plant and equipment after our cash flow statement, which was mostly comprised of $108 million in the Séguéla project construction, $9.3 million of Séguéla brownfield exploration, $8.1 million of greenfield exploration and $112 million of capital expenditures, including brownfields at our operating mines. There is a $30 million balance related to capitalized interest, capitalized management fees and advances to contractors.

在這一年裡，我們在現金流量表之後花費了 2.51 億美元用於增加礦產、廠房和設備，其中主要包括 1.08 億美元的 Séguéla 項目建設、930 萬美元的 Séguéla 棕地勘探、810 萬美元的綠地勘探和 112 美元百萬的資本支出，包括我們運營礦山的棕地。與資本化利息、資本化管理費和承包商預付款相關的餘額為 3000 萬美元。

As of year-end, we have incurred $147 million out of the $173.5 million construction budget at Séguéla. The amount remaining to be spent, including project accounts payable as of December 31 was $38 million. And finally, between Q2 and Q3, we repurchased a total of 2.2 million shares under our share repurchase program at an average share price of $2.68 per share. Back to you, Jorge.

截至年底，在塞蓋拉 1.735 億美元的建設預算中，我們已經支出了 1.47 億美元。截至 12 月 31 日，包括項目應付賬款在內的剩餘待支出金額為 3800 萬美元。最後，在第二季度和第三季度之間，我們根據股票回購計劃以每股 2.68 美元的平均股價回購了總計 220 萬股股票。回到你身邊，豪爾赫。

Thank you, Luis, Carlos, to you. We would now like to open the call to any questions that you may have.

路易斯，卡洛斯，謝謝你們。我們現在想打開您可能有的任何問題的電話。

(Operator Instructions)

（操作員說明）

We have a question from Adrian Day with Adrian Day Asset Management.

Adrian Day 向 Adrian Day Asset Management 提出了一個問題。

I just wanted to ask, you had mentioned when you were discussing impairments, you mentioned that San Jose below head grades. Can you kind of quantify that?

我只是想問，你在討論障礙時提到過，你提到聖何塞低於最高等級。你能量化一下嗎？

Luis, do you want to expand on that?

路易斯，你想對此進行擴展嗎？

Yes. I mean the extension of life of mine at San Jose, really has mostly to do with Victoria vein, which does carry a lower head grade with respect to average grade of the reserve or return. That is in our reserve statement. I'm not able to give you exact head rigs out of the Victoria vein out on the head right now, their Adrian, but I'm not sure if either Paul or Cesar, if you want to jump in there?

是的。我的意思是我在聖何塞的壽命延長，實際上主要與維多利亞礦脈有關，相對於儲備或回報的平均品位，它確實具有較低的原礦品位。那是在我們的保留聲明中。我現在不能給你準確的頭部鑽機，從維多利亞靜脈出來，他們的阿德里安，但我不確定是保羅還是塞薩爾，如果你想跳進去？

Luis, could you characterize -- that is meaningful or marginal or..

Luis，你能描述一下——是有意義的還是邊際的還是……

Go ahead.

前進。

I was just going to say that we're not going to get an exact number on the head mix. But what I can say on my end is that the projected life of mine, the remaining life of mine at San Jose is still based on those lower hedge rates with respect to our historical production -- is still contributing significant margins and free cash flow, not at the same rate, certainly as before. But I mean, for instance, in our current mine plan, you could -- based on our production guidance for the year, you can appreciate lower head grade, lower production with respect to 2022. And in 2022, lower with respect to 2021, but nonetheless, this -- in the current price environment, we're still projecting healthy free cash flow out of San Jose in the range of $25 million to $30 million. Right? That, I think, additional color I could provide on what those lower head rates imply for San Jose moving forward at this stage.

我只是想說我們不會得到頭部混音的確切數字。但我可以說的是，我的預計壽命，我在聖何塞的剩餘壽命仍然基於相對於我們歷史生產的較低對沖率 - 仍在貢獻可觀的利潤和自由現金流，不是以同樣的速度，肯定和以前一樣。但我的意思是，例如，在我們目前的礦山計劃中，你可以——根據我們今年的生產指導，你可以欣賞到較低的原礦品位，相對於 2022 年的產量較低。而在 2022 年，相對於 2021 年較低，但儘管如此，在當前的價格環境下，我們仍然預計聖何塞的健康自由現金流量在 2500 萬至 3000 萬美元之間。正確的？那，我想，我可以提供額外的顏色來說明那些較低的人頭率意味著聖何塞在這個階段向前邁進。

Okay. Okay. I appreciate that. And one other question, if I may, also on the impairments. At Lindero, you mentioned the impairment was mostly due to higher costs. I mean, none of us knows what's going to happen to cost going forward. But assuming costs stay where they are, does this affect -- will this affect either your production, your annual production or maybe even your ultimate production from the mine?

好的。好的。我很感激。另一個問題，如果可以的話，也是關於損傷的。在 Lindero，您提到減值主要是由於成本較高。我的意思是，我們都不知道未來成本會發生什麼。但假設成本保持不變，這是否會影響——這會影響您的產量、您的年產量，甚至可能影響您的礦山最終產量嗎？

In terms of volume?

在體積方面？

No. I mean the guidance we have provided already for the year, for 2023 already incorporates our view as to inflation trends in the new year, right? There is low new information here with respect to what's already been shared as part of our guidance for 2023, either on production or on cost.

不，我的意思是我們已經為 2023 年提供了今年的指導，已經包含了我們對新一年通脹趨勢的看法，對嗎？關於已經作為我們 2023 年指南的一部分共享的內容（無論是關於生產還是成本），這裡的新信息很少。

Okay. Sorry, I didn't express myself clearly. Do the high -- will the higher costs make any of the -- or uneconomic that you were expecting to be economic?

好的。對不起，我沒有表達清楚。高 - 更高的成本是否會使您期望經濟的任何 - 或不經濟？

I think our reserves -- I think we're going to update our reserve inventory as we publish every year in the coming weeks. But we do not expect any significant deviation to what you have been seeing in the reserve. If you look at our production for 2022, San Jose delivered 5.7 million, 5.8 million ounces of silver for the full year and 34,000 ounces of gold. If you look at our guidance for 2023, San Jose is delivering again between 34,000, 37,000 ounces of gold and 5.3 million to 5.8 million ounces of silver. If you look at the reserve average grade, the Victoria vein comes later in the life of the mine, in the remaining life of mine. So -- the grade in the reserve, it's -- where you were -- where we provided an average and in the later years, is we have the lower portion of grades that make that average, right? So you see a bit of a decrease in grade and a decrease in production for 2023, we're still seeing similar figures in line with what we have in reserves.

我認為我們的儲備——我認為我們將在未來幾週每年發佈時更新我們的儲備庫存。但我們預計不會與您在保護區看到的情況有任何重大偏差。如果你看看我們 2022 年的產量，聖何塞全年交付了 570 萬、580 萬盎司白銀和 34,000 盎司黃金。如果您查看我們對 2023 年的指導，聖何塞將再次交付 34,000、37,000 盎司黃金和 530 萬至 580 萬盎司白銀。如果你看一下儲量平均品位，維多利亞礦脈出現在礦山的後期，在我的剩餘生命中。所以 - 儲備中的等級，它 - 你在哪裡 - 我們提供平均水平的地方，在後來的幾年裡，我們有較低的成績達到這個平均水平，對嗎？所以你會看到 2023 年的品位和產量有所下降，我們仍然看到與我們的儲備相符的類似數字。

But certainly, from the impairment perspective, we've been investing heavily in exploration for a number of years at the tune of $9 million to $10 million a year. And that exploration investment has not been able to offset the depletion of the mine. We've been only marginally successful with the exploration to date and that has weighted on the impairment and also the cost inflation that we see at the asset level has also weighted on that, right? So it's a mixture of things there, Adrian.

但可以肯定的是，從減值的角度來看，我們多年來一直在大量投資於勘探，每年投入 900 萬至 1000 萬美元。而且勘探投資無法抵消礦山的枯竭。迄今為止，我們的探索只取得了微弱的成功，這對減值造成了影響，而且我們在資產層面看到的成本通脹也對這一點產生了影響，對吧？所以這是混合的東西，阿德里安。

We have had a question come in from Dave Kranzler. "What do you expect generally to be the annual sustaining CapEx at Séguéla once it is fully ramped up?"

Dave Kranzler 向我們提出了一個問題。 “一旦 Séguéla 全面提升，您一般預計每年的持續資本支出是多少？”

David, do you want to tackle that one?

大衛，你想解決那個問題嗎？

Yes, certainly for the budget that we've -- guidance we put forward for this year. We have always sustaining costs, there is Séguéla or -- between $880 and $1,080 per ounce and then the Obviously, as the first year of commissioning with 71,000 ounces. We're obviously expecting the -- at -- profile to grow beyond there. And with the exploration work that Paul is doing, we would expect the mine plans to be quite dynamic over the next -- year as well and certainly provide us some growth expectations. So in terms of life of the mine at the moment, we would still be expecting to be below that $1,000 an ounce are -- all in sustaining area.

是的，當然是針對我們的預算——我們為今年提出的指導。我們一直在維持成本，有 Séguéla 或 - 在每盎司 880 美元到 1,080 美元之間，然後是顯然，作為 71,000 盎司調試的第一年。我們顯然期待 - 在 - 個人資料能夠超越那裡。通過保羅正在進行的勘探工作，我們預計明年的礦山計劃也將充滿活力，並且肯定會為我們提供一些增長預期。因此，就目前礦山的壽命而言，我們仍預計會低於每盎司 1,000 美元——都在維持區域。

Maybe just to complement on David's answer in terms of an absolute dollar figure, CapEx at Séguéla for the life of mine, right, consistent with the numbers implied in AISC just provided by David should be in the $16 million to $20 million range.

也許只是為了補充大衛在絕對美元數字方面的回答，Séguéla 在我生命中的資本支出，對，與大衛剛剛提供的 AISC 中隱含的數字一致，應該在 1600 萬到 2000 萬美元之間。

(Operator Instructions)

（操作員說明）

Okay. We have no further questions in queue. So I will hand it back to Mr. Carlos Baca.

好的。隊列中沒有其他問題。所以我會把它交還給 Carlos Baca 先生。

Thank you, Ali. If there are no further questions, I would like to thank everyone for listening to today's earnings call. Have a good day.

謝謝你，阿里。如果沒有其他問題，我要感謝大家收聽今天的財報電話會議。祝你有美好的一天。

Thank you, ladies and gentlemen. This does conclude today's call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

謝謝你們，女士們，先生們。今天的電話會議到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您的參與。