Fortuna Mining Corp (FSM) 2023 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Fortuna Silver Mines Q4 and full year 2023 financial and operational results call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Carlos Baca, Investor Relations. Carlos, over to you.

大家早安，歡迎參加 Fortuna Silver Mines 第四季和 2023 年全年財務和營運業績電話會議。（操作員說明）請注意，本次會議正在錄製中。我現在將會議交給東道主投資者關係部門的 Carlos Baca。卡洛斯，交給你了。

Thank you, Jenny. Good morning, ladies and gentlemen. I would like to welcome you to Fortuna Silver Mines fourth-quarter and full-year 2023 financial and operational results conference call. Hosting the call today on behalf of Fortuna will be Jorge Alberto Ganoza, President, Chief Executive Officer, and Co-Founder; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; and David Whittle, Chief Operating Officer, West Africa.

謝謝你，珍妮。早安，女士們，先生們。歡迎您參加 Fortuna Silver Mines 2023 年第四季和全年財務和營運業績電話會議。今天代表 Fortuna 主持電話會議的是總裁、執行長兼聯合創始人 Jorge Alberto Ganoza；路易斯‧達裡奧‧加諾薩 (Luis Dario Ganoza)，財務長； Cesar Velasco，拉丁美洲營運長；西非營運長 David Whittle。

Today's earnings call presentation will be available on our website at 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 US 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，本次電話會議期間發表的聲明須遵守昨天的新聞稿和財報電話會議演示中包含的讀者建議。除非另有說明，演示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 and is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from our conclusion, forecast or projections made in the forward-looking information. A description of these risks, uncertainties and other factors is set out in the company's annual information form for the financial year ended December 31, 2022. The annual MD&A for the financial year ended December 31, 2022, and the interim third quarter 2023 are all publicly available on the SEDAR website.

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，並受到許多風險、不確定性和其他因素的影響。可能導致實際結果與我們在前瞻性資訊中所做的結論、預測或預測有重大差異。這些風險、不確定性和其他因素的描述載於本公司截至 2022 年 12 月 31 日的財政年度的年度資訊表中。截至 2022 年 12 月 31 日的財政年度的年度 MD&A 以及 2023 年第三季中期報告均在 SEDAR 網站上公開發布。

Certain material factors or assumptions were applied by the company and are drawing a conclusion or making a forecast or projection as reflected in the forward-looking information made in this call. The material factors or assumptions are also described in the company's annual information form for the financial year ended December 31, 2023, the annual MD&A for the financial year ended December 31, 2023, and the interim MD&A for the third quarter 2023. The company assumes no obligation to update such forward-looking information in the future, except as required by law.

本公司應用了某些重大因素或假設，並得出結論或做出預測或預測，如本次電話會議中的前瞻性資訊所反映的那樣。重大因素或假設也在公司截至2023年12月31日的財政年度的年度資訊表、截至2023年12月31日的財政年度的年度MD&A以及2023年第三季的中期MD&A中進行了描述。除法律要求外，本公司不承擔將來更新此類前瞻性資訊的義務。

I would now like to turn the call over to Jorge Alberto Ganoza, President and Chief Executive Officer and Co-Founder of Fortuna.

我現在想將電話轉給 Fortuna 總裁兼執行長兼聯合創始人 Jorge Alberto Ganoza。

Thank you, Carlos. Fortuna had a strong close to 2023. In the fourth quarter, we recorded $66 million free cash flow from ongoing operations, which is consistent with the $70 million recorded in the third quarter. We achieved a record $136,000 gold equivalent ounces in the period as well and realized an average gold price of $1,990 per ounce, yielded record sales of $265 million. Our consolidated ASICS for the period was $1,509 per gold equivalent ounce.

謝謝你，卡洛斯。臨近 2023 年，福爾圖納 (Fortuna) 表現強勁。第四季度，我們持續營運的自由現金流為 6,600 萬美元，與第三季的 7,000 萬美元一致。在此期間，我們的黃金等值盎司也創下了創紀錄的 136,000 美元，平均黃金價格達到每盎司 1,990 美元，銷售額達到創紀錄的 2.65 億美元。我們這段期間的綜合 ASICS 價格為每盎司黃金 1,509 美元。

We are using the strong proceeds of the business to advance payments on our corporate credit facility, paying $40 million in the third quarter, $41 million in the fourth quarter, and subsequent to year end, we paid an additional $25 million between the end of February and early March. We have a favorable debt to EBITDA ratio of under 0.3 and a total net debt of approximately $83 million. Providing enhanced flexibility to our balance sheet through debt reduction is one of our capital allocation priorities in 2024, and we expect to achieve zero net debt during this year.

我們正在利用該業務的強勁收益來預付我們的企業信貸額度，第三季支付 4,000 萬美元，第四季支付 4,100 萬美元，年底之後，我們在 2 月底之間額外支付了 2,500 萬美元和三月初。我們的有利債務與 EBITDA 比率低於 0.3，總淨債務約為 8,300 萬美元。透過減少債務來增強資產負債表的靈活性是我們 2024 年資本配置的優先事項之一，我們預計今年將實現零淨債務。

Another capital allocation priority is funding high-value organic growth opportunities in the portfolio and attractive acquisitions in the regions where we are already established. Our $38 million exploration program this year includes 200,000 meters of drilling, with a focus on Diamba Sud in Senegal and Séguéla in Côte d'Ivoire. For reserve replacement, our priorities continue to focus on the San Jose and Yaramoko mines.

另一個資本配置優先事項是為投資組合中的高價值有機成長機會以及我們已經建立的地區的有吸引力的收購提供資金。今年我們價值 3,800 萬美元的勘探計畫包括 20 萬公尺的鑽探，重點是塞內加爾的 Diamba Sud 和科特迪瓦的 Séguéla。對於儲量替代，我們的優先事項繼續集中在聖何塞和亞拉莫科礦山。

In the short to medium term, both the Diamba Sud project in Senegal and the Séguéla mine in Côte d'Ivoire are our strongest drivers for growth and value. And David Whittle, our Chief Operating Officer for West Africa, will explain later. At Séguéla, at the end of December, we are processing ore at a rate which is 26% higher than nameplate capacity and encountering positive rate reconciliation at their starter Antenna pit.

從中短期來看，塞內加爾的 Diamba Sud 計畫和科特迪瓦的 Séguéla 礦場都是我們成長和價值的最強驅動力。我們西非的營運長 David Whittle 稍後將進行解釋。12 月底，在 Séguéla，我們的礦石加工速度比銘牌容量高出 26%，並且在他們的啟動 Antenna 礦坑中遇到了正率調節。

In the fourth quarter, we obtained 24% more gold ounce that then predicted by the reserve model. And the priority continues -- and the property continues to offer tremendous discovery opportunities, which we are diligently pursuing with our exploration.

第四季度，我們獲得的黃金盎司比儲備模型預測的多了 24%。優先事項仍在繼續，該礦產繼續提供巨大的發現機會，我們正在透過勘探努力追求這些機會。

At Diamba Sud, we currently hold an 850,000 ounce gold resource, which will catalog as historical and has not been incorporated to our consolidated resource. We expect to enhance our knowledge of the mineral deposit and expand it with our ongoing 45,000 meter drill program and be in a position by year end to deliver a preliminary economic assessment.

在 Diamba Sud，我們目前持有 850,000 盎司黃金資源，該資源將被列為歷史資源，尚未納入我們的合併資源中。我們希望透過正在進行的 45,000 公尺鑽探計劃來增強對礦藏的了解並擴大其範圍，並能夠在年底前提供初步的經濟評估。

At both the San Jose and the Yaramoko mines, we continue pursuing reserve replacement with well-funded drill programs. At San Jose, we are targeting the Yessi vein, a high-grade silver-gold discovery made in 2023. And at Yaramoko, we have achieved a lot of success expanding reserves on the fringes of the Zone 55 deep ore body. We will be reporting on results from our exploration programs in West Africa and Latin America later in March.

在聖荷西和亞拉莫科礦山，我們繼續透過資金充足的鑽探計劃尋求儲量替代品。在聖荷西，我們的目標是 Yessi 礦脈，這是 2023 年發現的高品位銀金礦。在 Yaramoko，我們在擴大 55 區深層礦體邊緣的儲量方面取得了許多成功。我們將於三月晚些時候報告西非和拉丁美洲勘探項目的結果。

And another capital allocation consideration is for share buyback program, which was under a temporary restriction placed by the credit facility bank syndicate. This restriction was lifted by us in early January, and with the financial results blackout behind us, we may now participate again in the market. And considering available liquidity, capital allocation opportunities, and the state of the company valuation in the market, we may be participating again in the market as I said.

另一個資本配置考量是股票回購計劃，該計劃受到信貸銀行銀團的臨時限制。我們在一月初取消了這個限制，隨著財務業績封鎖的過去，我們現在可以再次參與市場。考慮到可用的流動性、資本配置機會以及公司在市場上的估值狀況，我們可能會像我所說的那樣再次參與市場。

So with that, I will now let our Chief Operating Officer provide some further detail on our operations to the regions. So we can start with West Africa. David, you want to go ahead?

因此，我現在將讓我們的營運長提供有關我們在這些地區的營運的更多細節。所以我們可以從西非開始。大衛，你想繼續嗎？

Thanks, Jorge. Séguéla and Yaramoko had a successful fourth quarter from both safety and production perspective. Both mines recorded zero LTIs and Yaramoko reached an exceptional milestone of three years LTI in 2023 and obtained ISO 14001 and ISO 45001 certifications.

謝謝，豪爾赫。從安全和生產的角度來看，塞蓋拉和亞拉莫科第四季都取得了成功。兩個礦場的 LTI 均為零，Yaramoko 於 2023 年達到了三年 LTI 的非凡里程碑，並獲得了 ISO 14001 和 ISO 45001 認證。

In the fourth quarter, Séguéla produced 43,096 ounces of gold, a 37% improvement compared to the previous quarter, and delivered 78,617 ounces of gold to 2023, outperforming annual production guidance by 5%. Yaramoko's strong production performance delivered 28,235 ounces of coal -- sorry, 28,235 ounces of gold, leading to 117,711 ounces of gold to the year, achieving the higher end of the revised annual production guidance.

第四季度，塞蓋拉生產了 43,096 盎司黃金，比上一季度增長了 37%，到 2023 年交付了 78,617 盎司黃金，超出年度產量指導值 5%。Yaramoko 強勁的生產業績交付了 28,235 盎司煤炭（抱歉，是 28,235 盎司黃金），導致全年黃金產量達到 117,711 盎司，達到了修訂後的年度產量指導值的上限。

In the fourth quarter of 2023, Séguéla mined 409,293 tonnes of ore, with an average gold grade of 3.34 grams per tonne, and 2,214,681 tonnes of waste with a strip ratio of 5.4. All process was 387,267 tonnes at 3.62 grams per tonne of gold.

2023年第四季度，塞蓋拉開採了409,293噸礦石，平均黃金品位為每噸3.34克，開採了2,214,681噸廢料，剝離比為5.4。所有加工量為 387,267 噸，每噸黃金 3.62 克。

Mining operations focused mainly on Antenna pit to provide ore pit to the processing plant. At the Ancien pit, haul road and other development was completed, and topsoil and waste stripping commenced with 104,472 tonnes of waste stripping being achieved. Preparations for the mining of the Koula pit commenced during the quarter, with grade control drilling and haul road construction being undertaken.

採礦作業主要集中在天線坑，為加工廠提供礦石坑。Ancien坑、運輸道路和其他開發已完成，表土和廢物剝離開始，完成廢物剝離104,472噸。Koula 礦坑的採礦準備工作於本季度開始，正在進行品位控制鑽探和運輸道路建設。

Processing plant operations continued to ramp up beyond the nameplate capacity of 154 tonnes an hour during the quarter, achieving an average throughput of 186 tonnes per hour. In December, an average throughput of 194 tonnes per hour was obtained, 26% higher than designed. A partial mill reline was undertaken in February, and we are now successfully further testing throughput constraints. The goal recovery for the quarter was 94.9%, slightly ahead of the 94.5% design recovery, benefiting from the higher head grade.

本季度，加工廠的營運量持續超出每小時 154 噸的銘牌產能，實現每小時 186 噸的平均吞吐量。12月，平均吞吐量達到每小時194噸，比設計高出26%。二月進行了部分軋機更換，我們現在正在成功地進一步測試吞吐量限制。本季的目標回收率為 94.9%，略高於設計回收率 94.5%，受益於較高的罐頭等級。

The second lift of the tailing storage facility is currently under construction and is expected to be completed by the end of this quarter. This will assure adequate tailing storage for another two years of production at the increased throughput rates.

尾礦儲存設施的第二台升降機目前正在建設中，預計將於本季末完工。這將確保在提高吞吐率的情況下，有足夠的尾礦儲存量供接下來兩年的生產使用。

Séguéla's strong performance resulted in both a cash cost of $341 and an AISC of $737 per ounce of gold, both below guidance. At Yaramoko, mine production in the fourth quarter of 2023 was 112,906 tonnes, at an average grade of 7.33 grams per tonne gold. Mining operations were primarily sourced from the 55 Zone underground mine. Development and stoping operations of the Bagassi South mine contributed 10,162 tonnes at 6.05 grams per tonne gold to the above outputs, with batch treatment of Bagassi ore showing a very close correlation to the mine core.

Séguéla 的強勁表​​現導致每盎司黃金的現金成本為 341 美元，AISC 為 737 美元，均低於指引值。Yaramoko 2023 年第四季的礦場產量為 112,906 噸，平均品位為每噸 7.33 克黃金。採礦作業主要來自 55 區地下礦坑。Bagassi South 礦場的開發和停止運作為上述產量貢獻了 10,162 噸黃金，每噸黃金 6.05 克，其中 Bagassi 礦石的批量處理顯示出與礦芯非常密切的相關性。

At the processing plant, 110,445 tonnes were treated at an average grade of 7.16 grams per tonne gold, with a recovery at 98.3%. The decreased processing tonnes are attributed to a plant shutdown for 11 days in December '23. The enhanced production resulted in the cash cost and AISC at Yaramoko being below the lower end of annual guidance for the year at $870 and $1,499 per ounce of gold, respectively.

該加工廠共處理了 110,445 噸黃金，平均品位為每噸 7.16 克黃金，回收率為 98.3%。加工噸數減少是由於 2023 年 12 月工廠停工 11 天。產量增加導致 Yaramoko 黃金的現金成本和 AISC 分別低於年度指引下限，即每盎司黃金 870 美元和 1,499 美元。

Development operations and diamond drilling success enabled further strike extensions of the 55 Zone ore body to the east of the expected mining boundaries, as well as strike extensions and mineable displays of the QV prime ore body at the Bagassi South mine.

開發作業和鑽石鑽探的成功使得 55 Zone 礦體的走向進一步延伸至預期採礦邊界以東，以及 Bagassi South 礦 QV 主要礦體的走向延伸和可開採展示。

Back to you, Jorge.

回到你身邊，豪爾赫。

Thank you, David. Cesar, do you want to provide your report?

謝謝你，大衛。塞薩爾，你想提供你的報告嗎？

Yes, thank you, Jorge, and good afternoon to everyone.

是的，謝謝你，豪爾赫，祝大家下午好。

In 2023, our Latin American operations successfully delivered 130,310 ounces of gold, 5.9 million ounces of silver, 40.9 million pounds of lead, and 55.1 million pounds of zinc. Consolidated gold production achieved guidance, enabled mainly by Lindero producing 101,238 ounces.

2023年，我們的拉丁美洲業務成功交付了130,310盎司黃金、590萬盎司白銀、4,090萬磅鉛和5,510萬磅鋅。綜合黃金產量達到預期目標，主要得益於 Lindero 產量 101,238 盎司。

The consolidated silver production was 7% below guidance due to San Jose's lower tonnage extracted from the mine as it had to deal with 15-day stoppage at the beginning of the year, operational difficulties thereafter, and reduced grade profile as we are operating at the tail end of reserves. Base metals with its exceptional lead and zinc production was 28.15% above guidance, respectively.

綜合白銀產量比指導值低 7%，原因是聖何塞礦開採噸位較低，因為該礦必須應對年初 15 天的停工、此後的運營困難以及我們在該礦運營時品位下降的情況。儲備金尾部。基本金屬的鉛和鋅產量分別比指導值高 28.15%。

Starting in Argentina, Lindero's gold production for the fourth quarter was 29,591 ounces, a significant increase of 41% when compared to the previous quarter. This increase was enabled by higher gold production and the extraction of 4,600 ounces contained in fine carbon and copper precipitate. Gold production for the year totaled 101,238 ounces, achieving midpoint of annual production guidance.

從阿根廷開始，Lindero第四季的黃金產量為29,591盎司，較上一季大幅成長41%。這一增長得益於黃金產量的增加以及細碳和銅沉澱物中所含 4,600 盎司的提取。全年黃金產量總計 101,238 盎司，達到年度產量指引值的中位數。

In the fourth quarter, a total of 2.1 million tonnes of ore were mined at a stripping ratio of 0.6 to 1, leading to a stripping ratio of 1.14 to 1 for the year, aligned with the mining plan. During the same period, a total of 1.6 million tonnes of ore were placed on the leach pad at an average gold grade of 0.63 grams per tonne, containing an estimated 31,665 ounces of gold.

第四季度，共開採礦石210萬噸，剝採比為0.6比1，全年剝採比為1.14比1，與開採計畫相符。同一時期，總共有 160 萬噸礦石被放置在浸出墊上，平均金品位為每噸 0.63 克，估計含金量為 31,665 盎司。

Lindero's annual cash cost of 920 and AISC of 1,565 per ounce of gold were both within guidance. To note, cash cost and AISC have been affected by adverse in-country macroeconomic conditions during 2023, compounded by an increase in sustaining capital expenditures mainly related to the heap leach expansion project. These costs were partially offset by improved copper by-product sales, totaling $7.7 million.

Lindero 的年度現金成本為每盎司黃金 920 美元，AISC 為每盎司黃金 1,565 美元，均在指引範圍內。值得注意的是，現金成本和總維持成本受到 2023 年國內宏觀經濟情勢不利的影響，加上主要與堆浸擴建項目相關的維持資本支出的增加，雪上加霜。這些成本被銅副產品銷售額的增加所部分抵消，總計 770 萬美元。

As of the end of February 2024, the 41 million leach pad expansion project is approximately 28% progressed, with completion planned by the end of 2024. Those 41 million equates roughly to $410 on the AISC for 2024. While this investment weighs heavily on the company's AISC for this year, it will greatly benefit Lindero by allowing the placing of reserves over the next decade.

截至2024年2月底，耗資4,100萬美元的瀝濾場擴建工程已進度約28%，計畫於2024年底完工。這 4,100 萬美元大約相當於 2024 年 AISC 的 410 美元。雖然這項投資對公司今年的總維持成本（AISC）造成沉重壓力，但它允許在未來十年內存放儲備金，從而使 Lindero 受益匪淺。

In Mexico, San Jose produced 1 million ounces of silver and 6,341 ounces of gold in the fourth quarter of 2023, with average head grades of 145 grams per tonne and 0.91 grams per tonne, respectively. Total production for 2023 was 4.7 million ounces of silver and 28,559 ounces of gold, 12% and 16% below annual guidance, respectively. The decrease in production, as I mentioned before, is attributed primarily to the 15-day illegal union blockade in the second quarter, the associated disruption to operations thereafter, a silver and gold head grade reconciliation to reserves at the lower end of guidance range, and a mine that offers less operational flexibility as it is working on the tail end of reserves.

在墨西哥，聖荷西在 2023 年第四季生產了 100 萬盎司白銀和 6,341 盎司黃金，平均原始品位分別為每噸 145 克和每噸 0.91 克。2023 年白銀總產量為 470 萬盎司，黃金總產量為 28,559 盎司，分別比年度指引值低 12% 和 16%。正如我之前提到的，產量下降主要歸因於第二季度工會長達 15 天的非法封鎖、此後相關的運營中斷、白銀和黃金頭級與儲備的調節處於指導範圍的下限，另一個礦場的營運靈活性較差，因為它正在開採儲量的尾部。

We continue to experience significant inflationary pressures in Mexico beyond what we see in other countries where Fortuna operates. The 2023 cash cost of 14.40 and AISC of 19.40 per silver equivalent ounce were above guidance. Higher costs are mainly explained by a significant appreciation of the Mexican peso, which affects approximately 50% of our total cost, in addition to higher labor, contractor material, and consumable costs, lower ounces produced, and lower head grades, all of which are also carried into 2024 estimates.

我們在墨西哥繼續面臨著比 Fortuna 開展業務的其他國家所面臨的嚴重通膨壓力。2023 年每盎司白銀的現金成本為 14.40，AISC 為 19.40，均高於指引值。成本上升的主要原因是墨西哥比索的大幅升值，這影響了我們總成本的約 50%，此外還有勞動力、承包商材料和消耗品成本上升、產量減少以及頭品級下降，所有這些都與還納入了2024 年的預測。

Based on exploration outcomes and the remaining life of reserves, the company is preparing to execute a multi-year progressive mine closure and monitoring plan in strict compliance with government regulations and adhering to high international standards.

根據勘探成果和儲量剩餘壽命，公司準備嚴格遵守政府法規並遵循國際高標準，執行多年逐步關閉礦場和監測計畫。

In Peru, the Caylloma mine produced 330,478 ounces of silver at an average head rate of 88 grams per tonne in the fourth quarter. Silver production for 2023 totaled 1,227,060 ounces, surpassing the upper end of guidance by 10%. Lead and zinc production for the quarter was 10.8 million and 14 million pounds, with head grades averaging 3.84% and 5% respectively. Caylloma delivered strong base metal production in 2023, totaling 40.9 million pounds of lead and 55.1 million pounds of zinc, surpassing guidance by 28% and 15% respectively. Enhanced production was the result of positive grade reconciliation to the reserve model in levels 16 and 18 of the Animas vein.

在秘魯，Caylloma 礦場第四季度生產了 330,478 盎司白銀，平均產出率為每噸 88 克。2023 年白銀產量總計 1,227,060 盎司，超出指導上限 10%。本季鉛和鋅產量分別為 1,080 萬磅和 1,400 萬磅，平均品位分別為 3.84% 和 5%。Caylloma 於 2023 年實現了強勁的基本金屬產量，鉛產量總計 4,090 萬磅，鋅產量總計 5,510 萬磅，分別超出指導值 28% 和 15%。產量的增加是與阿尼馬斯礦脈 16 和 18 層儲量模型正品位調節的結果。

Back to you, Jorge.

回到你身邊，豪爾赫。

Thank you. We'll now proceed with a review of our financials results. Luis, please.

謝謝。我們現在將繼續審查我們的財務業績。路易斯，請。

Yes, thank you. So for Q4 2023, we have recorded a net loss attributable to Fortuna shareholders of $92.3 million, explained by an impermanent charge of $90.6 million related to the anticipated closure of the San Jose mine in late 2024. As had been previously disclosed, the updated mine plan is scheduled to exhaust mineral reserves by the end of this year compared to mid-2025 as previously planned.

是的，謝謝。因此，在 2023 年第四季度，我們記錄了 Fortuna 股東應佔的淨虧損為 9,230 萬美元，原因是與預計於 2024 年底關閉聖何塞礦場有關的 9,060 萬美元的臨時費用。如同先前所揭露的，更新後的礦場計畫預計將在今年年底前耗盡礦產儲量，而先前的計畫是在 2025 年中期。

Adjusted net income in the period was $20.6 million or $0.07 per share compared to $6.4 million or $0.02 per share in the prior year. In the quarter, we have adjusted for several non-recurrent items. All of them except one are non-cash charges. I will briefly describe them on a pre-tax basis.

該期間調整後淨利潤為 2,060 萬美元，即每股 0.07 美元，而前一年為 640 萬美元，即每股 0.02 美元。本季度，我們對多項非經常性項目進行了調整。除一項外，所有費用均為非現金費用。我將在稅前基礎上簡要描述它們。

The main one is an impairment at San Jose as I just mentioned. Under cost of sales, we have adjusted $15.4 million of write-downs comprised of $9.5 million of materials inventory at various sites and $5.9 million of low-grade stockpiles at Lindero. The materials inventory write-downs are related to a reassessment of consumption plans at San Jose in the face of the shortened life of mine for $4.4 million, with a balance corresponding to Yaramoko and Lindero.

正如我剛才提到的，主要的一個是聖荷西的損傷。在銷售成本項下，我們調整了 1540 萬美元的減記，其中包括各個地點的 950 萬美元的材料庫存和 Lindero 的 590 萬美元的低品位庫存。材料庫存減記與聖荷西礦場壽命縮短而重新評估消耗計畫有關，金額為 440 萬美元，餘額對應於 Yaramoko 和 Lindero。

The write-down of low-grade stockpiles at the Lindero mine was triggered by anticipated higher costs to completion over the life of mine. It is worth pointing out that this write-down doesn't necessarily bring into question the economic viability of the stockpiles as the decision to stockpile low-grade ore follows an incremental cost logic while the accounting allocates costs based on an average cost method.

Lindero 礦山低品位庫存的減記是由於預計礦山壽命期內完工成本較高而引發的。值得指出的是，這種減記並不一定會對庫存的經濟可行性產生質疑，因為庫存低品位礦石的決定遵循增量成本邏輯，而會計則根據平均成本法分配成本。

Under the line item labeled write-off of mineral properties, we have adjusted for a full $5.3 million amount, which is related to greenfields exploration projects in Mexico and Argentina. Under other expenses, we have adjusted for a $6.4 million severance provision at San Jose related to the scheduled mine closure and $1.2 million of customs penalties at Séguéla related to the construction phase.

在標有礦產註銷的行項目下，我們調整了全額 530 萬美元，該金額與墨西哥和阿根廷的綠地勘探項目有​​關。在其他費用項下，我們調整了聖荷西與預定礦場關閉相關的 640 萬美元遣散費以及塞蓋拉與施工階段相關的 120 萬美元海關罰款。

So back to adjusted net income, the main drivers of the increase over Q4 2022 were the contribution of the Séguéla mine, which explains the 71% higher volume of gold sold and higher gold price of 15%, which resulted in an average of $1,990 per ounce for the quarter.

因此，回到調整後的淨利潤，2022 年第四季成長的主要驅動力是塞蓋拉礦的貢獻，這解釋了黃金銷售量增加了 71%，金價上漲了 15%，從而導致了本季度平均價格為每盎司1,990 美元。

Our cash cost of sales per gold equivalent ounce sold was $840 compared to $873 in the prior year. As David mentioned, cash cost at Séguéla was $323 per ounce. That would be $376 per ounce if we included capital leases related to the mining contractor, which are reported as part of AISC but excluded from cash cost per ounce. The contribution of low-cost ounces from Séguéla was partially offset by higher cash cost per gold equivalent ounce at Yaramoko, Lindero, and San Jose in the quarter.

我們每售出一盎司黃金當量的現金銷售成本為 840 美元，而前一年為 873 美元。正如 David 所提到的，Séguéla 的現金成本為每盎司 323 美元。如果我們包括與採礦承包商相關的資本租賃，則為每盎司 376 美元，這些資本租賃作為 AISC 的一部分報告，但不包括在每盎司現金成本中。塞蓋拉的低成本盎司貢獻被本季度亞拉莫科、林德羅和聖荷西每盎司黃金當量現金成本的上漲所部分抵銷。

For Yaramoko, this was primarily due to higher operating costs in Q4, partially offset by higher head rates. In the case of Lindero, the higher cost per ounce was mostly aligned with the expected reductions in head rates consistent with the mine plan. And for San Jose, this was mainly due to a shortfall of production in the quarter compared to the mine plan and lower head rates and the effect of the peso appreciation as noted by Cesar.

對於 Yaramoko 來說，這主要是由於第四季度營運成本上升，但部分被較高的員工率所抵消。就 Lindero 而言，每盎司較高的成本主要與採礦計畫中預期的頭率降低有關。對於聖荷西來說，這主要是由於與礦場計畫相比，本季產量不足、開工率較低以及塞薩爾指出的比索升值的影響。

Depreciation and depletion for the quarter was $71.6 million compared to $44.5 million in the prior year. The increase of $27 million is explained by the higher gold equivalent ounces sold and higher depletion per consolidated gold equivalent ounce of $67. This higher depletion on a per ounce basis is related primarily to Séguéla where total depletion and depreciation was $26 million, including $17 million corresponding to the purchase price allocation from the Roxgold acquisition.

本季的折舊和消耗為 7,160 萬美元，而上年同期為 4,450 萬美元。增加 2700 萬美元的原因是銷售的黃金當量盎司增加以及每盎司合併黃金當量消耗增加 67 美元。每盎司較高的消耗主要與塞蓋拉有關，該地區的總消耗和折舊為 2,600 萬美元，其中 1,700 萬美元對應於 Roxgold 收購的購買價格分配。

On income taxes, we have recorded $27 million of current income tax compared to $7.8 million in Q4 2022. The increase is mostly explained by Séguéla. We note that tax paid in the quarter was $6.3 million as we will be paying taxes for the first time at Séguéla in 2024.

在所得稅方面，我們記錄的當期所得稅為 2,700 萬美元，而 2022 年第四季為 780 萬美元。這一增長主要由塞蓋拉解釋。我們注意到，本季繳納的稅款為 630 萬美元，因為我們將於 2024 年在塞蓋拉首次納稅。

Moving on to free cash flow and liquidity, we reported $66 million of free cash flow from ongoing operations. This is after sustaining CapEx and corporate expenses. Our total liquidity at the end of the quarter was $213 million, up $51 million from the end of September 2023, reflecting the strong free cash flow generation in the quarter.

接下來是自由現金流和流動性，我們報告稱來自持續營運的自由現金流為 6,600 萬美元。這是在維持資本支出和公司開支之後。截至本季末，我們的總流動資金為 2.13 億美元，較 2023 年 9 月底增加 5,100 萬美元，反映出本季強勁的自由現金流產生。

We paid down $40.5 million of debt in Q4 2023 and have made, as Jorge pointed out, subsequent payments of $25 million up to the beginning of March. Finally, at the end of 2023, our total net debt was $83 million, down from $134 million in September of 2023.

我們在 2023 年第四季償還了 4,050 萬美元的債務，正如 Jorge 指出的那樣，截至 3 月初，我們已支付了 2,500 萬美元的後續款項。最後，到 2023 年底，我們的淨債務總額為 8,300 萬美元，低於 2023 年 9 月的 1.34 億美元。

Back to you, Jorge.

回到你身邊，豪爾赫。

Thank you, operator. We can now open the room for Q&A.

謝謝你，接線生。我們現在可以開放問答室了。

(Operator Instructions) Don DeMarco, National Bank Financial.

（操作員指令）Don DeMarco，國家銀行金融部門。

Thank you, operator, and good morning, Jorge and team. First question -- a couple questions on Séguéla. First off, looking at your guidance, what drove Séguéla AISC guidance higher in 2024? Because we see that Q4, you're still running at $7.37 an ounce, but then the midpoint next year is $11.70.

謝謝您，接線員，早安，豪爾赫和團隊。第一個問題──關於塞蓋拉的幾個問題。首先，看看您的指引，是什麼推動了 2024 年 Séguéla AISC 的指引走高？因為我們看到第四季的價格仍為 7.37 美元/盎司，但明年的中點為 11.70 美元。

Yes. As you can see, Don, in the second half of the year, our average strip ratio has been around 5.4. That is set to increase in accordance to our plan to around 8 to 9. The life of mine strip ratio of Séguéla is around 13. We have initiatives to optimize that with the underground trade-off studies that are ongoing right now, but that's what's currently in the plan.

是的。正如你所看到的，Don，今年下半年，我們的平均剝離率約為 5.4。根據我們的計劃，這一數字將增加到 8 到 9 左右。Séguéla 礦山剝採比壽命約 13。我們已採取措施透過目前正在進行的地下權衡研究來優化這一點，但這就是目前的計劃。

So in the second half of the year, the first two quarters of production, we have benefited from low strip ratios and shorter haulage strip. Moving onward into 2024, our strip ratios will increase in accordance to plan, and our haulage distances will increase. So yeah, that's basically what the explanation is.

因此，在今年下半年，前兩個季度的生產中，我們受益於低帶鋼比和較短的鋼運輸。進入 2024 年，我們的剝離率將按計劃增加，我們的運輸距離也將增加。是的，這基本上就是解釋。

Okay. Thank you. Also, at Séguéla, we've seen three quarters in a row now where recoveries have increased, Q4 was 95%. Should we flatline 95% from here on, or are you expected to increase further?

好的。謝謝。此外，在塞蓋拉，我們已經連續三個季度看到復甦率上升，第四季為 95%。我們應該從現在開始持平 95%，還是預計會進一步增加？

David, do you want to tackle that question?

大衛，你想解決這個問題嗎？

Yeah, I can respond to that. Obviously, the first couple of quarters, we were mining predominantly the Antenna Stage 1 ore, which was probably a higher grade than the life of mine grade. So we're expecting to retain around that 94.5% to 95% in terms of the life of mine recovery.

是的，我可以對此做出回應。顯然，在前幾個季度，我們主要開採天線一期礦石，其品位可能高於礦山壽命。因此，我們預計礦山回收壽命將保持在 94.5% 至 95% 左右。

Okay. Good to know. Shifting over to San Jose, you're spending $5 million on drilling this year at San Jose at Yessi. What do you need to find here to be able to keep the mine open? Or is that even an option?

好的。很高興知道。轉移到聖何塞，今年您在聖何塞 Yessi 的鑽探上花費了 500 萬美元。你需要在這裡找到什麼才能讓礦井保持開放？或者這甚至是一種選擇？

No, it's certainly an opportunity that we value. So we currently have three drill rigs advancing on Yessi. I have to say that it took us a while to understand the geology and the geometry of this structure. It has an orientation, a strike orientation that is different to what we're used to seeing that has made it difficult at the beginning, but we find it as an exciting feature of this new vein.

不，這當然是我們重視的機會。因此，我們目前有三台鑽機正在 Yessi 上推進。我必須說，我們花了一段時間才了解這個結構的地質和幾何形狀。它有一個方向，一個打擊方向，與我們習慣看到的不同，這使得一開始很困難，但我們發現它是這種新靜脈的一個令人興奮的特徵。

But now, we have a well-defined plane that we are hitting hard with drilling. Before, it was a bit a drill to understand, and now we're drilling for volume. So I would expect that by mid-year, we have a better grasp on how meaningful this discovery is.

但現在，我們有了一個明確的平面，我們正在大力鑽孔。以前，理解起來有點困難，現在我們正在鑽取體積。因此，我預計到年中，我們可以更了解這項發現的意義。

As I always say, here -- we had at Yessi an exciting discovery. Now we need to see it through into an exciting resource. We are currently working for that second component of this.

正如我常說的，我們在 Yessi 有了一個令人興奮的發現。現在我們需要將其轉化為令人興奮的資源。我們目前正在致力於第二個部分。

And as I said, we're hitting it hard. All of our drilling, the $5 million are funding drilling that are concentrated in this area. And we don't know the limits of it yet. And the expectation is that we can define volumes and resources. Tonnages starts -- getting a grasp on that by mid-year. So that will dictate -- that outcome will dictate our view on how to treat the mine plan moving forward.

正如我所說，我們正在努力解決這個問題。我們所有的鑽探，500 萬美元都用於資助集中在該地區的鑽探。我們還不知道它的限制。我們的期望是我們可以定義數量和資源。噸位開始——到年中掌握這一點。因此，這將決定——這個結果將決定我們對如何處理採礦計劃的看法。

As it sits today, we're exhausting reserves by the year-end. We have other resources in the mine. And the team is currently working on optimization opportunities on the Victoria resource, for example, to see if we can extract some more and waiting at the same time for outcomes of the Yessi vein exploration also. I think we'll have a better idea of how the winding down of -- potential winding down of mining will look closer to mid-year. But parallel to all of this, we are advancing, updating our plans, and keeping flexible.

按照目前的情況，我們的儲備金將在年底耗盡。我們礦井裡還有其他資源。例如，團隊目前正在研究維多利亞資源的最佳化機會，看看我們是否可以提取更多資源，同時也等待 Yessi 礦脈勘探的結果。我認為我們將在接近年中時更好地了解採礦業的潛在結束將如何結束。但同時，我們正在推進、更新我們的計劃並保持靈活性。

Okay. Sounds great. We'll look forward to an update on Yessi around mid-year then. Thank you, Jorge. That's all for me.

好的。聽起來很棒。我們將期待年中左右 Yessi 的更新。謝謝你，豪爾赫。這就是我的全部。

(Operator Instructions) Okay. We don't appear to have any further questions in the queue at the moment. I will now hand back over to Jorge for any closing comments.

（操作員指示）好的。目前我們似乎沒有任何其他問題在隊列中。我現在將把任何結束意見交回豪爾赫。

I just want to stress that our business continues to show strength from the perspective of free cash flow generation. It has been a good end of the year, and we look to an exciting 2024.

我只是想強調，從自由現金流產生的角度來看，我們的業務持續展現出實力。這是一個美好的一年，我們期待著令人興奮的 2024 年。

So with that, Carlos, do you want to --?

那麼，卡洛斯，你想嗎——？

Thank you very much, Jorge. I would like to thank everyone for listening to today's earnings call. Have a great day.

非常感謝你，豪爾赫。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 very much. That does conclude the conference call for today. You may disconnect your phone lines at this time and have a wonderful rest of the day. Thank you for your participation.

非常感謝。今天的電話會議到此結束。此時您可以斷開電話線並享受一天的美好休息。感謝您的參與。