Gatos Silver Inc (GATO) 2023 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by. Welcome to Gatos Silver's Third Quarter 2023 Results Conference Call. Presenting today will be Dale Andres, CEO of Gatos Silver; and Andre van Niekerk, Chief Financial Officer. We will conclude today's session with a question-and-answer period, where other members of the Gatos Silver management team will be available. (Operator Instructions).

女士們、先生們，大家好。謝謝你的支持。歡迎參加 Gatos Silver 2023 年第三季業績電話會議。今天的演講嘉賓是 Gatos Silver 執行長 Dale Andres；以及財務長安德烈范尼凱克 (Andre van Niekerk)。我們將以問答環節結束今天的會議，Gatos Silver 管理團隊的其他成員也將出席。 （操作員說明）。

Turning your attention to Slide 2. Please note, today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Gatos Silver does not assume the obligation to update any forward-looking statements.

將您的注意力轉向投影片 2。請注意，今天的電話會議包含前瞻性陳述。各種風險和不確定性可能導致實際結果有所不同。 Gatos Silver 不承擔更新任何前瞻性陳述的義務。

I would now like to turn the call over to Mr. Dale Andres. Please go ahead.

我現在想把電話轉給戴爾·安德烈斯先生。請繼續。

Thank you, operator, and good morning, everyone. Turning to Slide 3. There are three clear highlights this quarter. We continue to further strengthen the balance sheet, increasing the cash balance and reducing debt with continued free cash flow generation. Both GSI, Gatos Silver and 70% owned Los Gatos joint venture are debt free with a strong cash position.

謝謝接線員，大家早安。轉向幻燈片 3。本季有三個明顯的亮點。我們繼續進一步強化資產負債表，增加現金餘額，並透過持續產生自由現金流來減少債務。 GSI、Gatos Silver 和持有 70% 股份的 Los Gatos 合資企業都沒有債務，現金狀況強勁。

Number two, operations continued to perform very well with the Cerro Los Gatos Mine matching record throughput rates. As a result of continued good operational performance in the first month of the fourth quarter, in October, along with recent optimization of the mine plan, we are increasing our 2023 full year silver and silver equivalent production guidance by 16% and 8%, respectively, based on the midpoint of each guidance range.

第二，Cerro Los Gatos 礦場的運作持續表現出色，吞吐率達到了創紀錄的水平。由於第四季度第一個月持續良好的營運業績，加上近期礦場計畫的優化，我們將 2023 年全年白銀和白銀當量產量指引分別上調 16% 和 8% ，基於每個指導範圍的中點。

And number three, and I believe most importantly, in early September, we announced an updated life of mine plan and reserve and resource where we extended the mine life to 2030 and increased the expected silver production over the life of mine by 46%.

第三，我認為最重要的是，在9 月初，我們宣布了更新的礦山計劃、儲量和資源壽命，其中我們將礦山壽命延長至2030 年，並將礦山壽命期間的預期白銀產量增加了46% 。

We are actively infill drilling the new and prospective South-East Deeps zone, and we will be shifting our focus to additional near mine and district drilling through the fourth quarter and into 2024.

我們正在積極加密鑽探新的和未來的東南深部區域，我們將在第四季度和 2024 年期間將重點轉向更多的近礦區和區域鑽探。

Turning to Slide 4. This shows the continued strong operating performance at the Cerro Los Gatos Mine. Throughput in the quarter was just over 2,900 tonnes per day, while silver grades improved compared to the prior quarter, which resulted in an 11% increase in silver production of 2.2 million ounces.

轉向幻燈片 4。這顯示了 Cerro Los Gatos 礦場持續強勁的營運業績。本季的吞吐量略高於每天 2,900 噸，而白銀品位較上一季度有所提高，導致白銀產量增加 11%，達到 220 萬盎司。

Silver equivalent production, which includes zinc, lead and gold was 3.5 million ounces for the quarter. Cost of sales increased by 10% compared to the same period a year ago, primarily the result of the strong Mexican peso exchange rate, applying pressure on our costs, which are reported in U.S. dollars as well as inflationary pressures.

本季白銀當量產量（包括鋅、鉛和黃金）為 350 萬盎司。銷售成本與去年同期相比增加了 10%，這主要是由於墨西哥比索匯率走強，這對我們以美元計價的成本以及通膨壓力造成了壓力。

Our all-in sustaining costs were similar to the prior quarter. I think it's very important to note with regard to operating costs, we are continuing to identify and implement various productivity and cost optimization initiatives and this is having a tangible impact to offset these pressures.

我們的整體維持成本與上一季相似。我認為值得注意的是營運成本，我們正在繼續確定和實施各種生產力和成本優化舉措，這對抵消這些壓力產生了切實的影響。

As a result of recent strong operational performance as well as optimization of the mine plan, we now expect to exceed our original 2023 production guidance and have made upward revisions to our silver and silver equivalent production guidance ranges.

由於近期強勁的營運業績以及礦場計畫的優化，我們現在預計將超過我們最初的 2023 年產量指導，並已上調我們的白銀和白銀當量產量指導範圍。

I'll now turn the call over to Andre to present our financial results.

現在我將把電話轉給安德烈，介紹我們的財務表現。

Thank you, Dale. Good morning, everyone. The Los Gatos joint venture had another good quarter with continued cash flow generation. Lower production and revenues were offset by lower capital expenditures, resulting in similar free cash flows in Q3 2022. The LGJV generated $29.4 million in cash flow from operations in the third quarter of 2023 compared to $38.5 million in the same period of 2022. The joint venture generated free cash flow of $14.3 million this quarter compared to $14.7 million in Q3 2022. Free cash flow for the first 9 months of this year of $62.6 million was 8% higher than in the same period last year.

謝謝你，戴爾。大家，早安。洛斯加托斯合資企業又迎來了一個良好的季度，持續產生現金流。較低的產量和收入被較低的資本支出所抵消，導致2022 年第三季的自由現金流類似。LGJV 2023 年第三季的營運現金流為2,940 萬美元，而2022 年同期為3,850 萬美元. Venture 本季產生的自由現金流為 1,430 萬美元，而 2022 年第三季為 1,470 萬美元。今年前 9 個月的自由現金流為 6,260 萬美元，比去年同期高出 8%。

Cash flow used in investing activities dropped from $23.8 million in Q3 2022 to $15.2 million in this quarter due to the lower expected sustaining capital expenditure requirements going forward. Year-to-date, we have incurred $29.9 million.

由於未來預期持續資本支出需求較低，投資活動使用的現金流量從 2022 年第三季的 2,380 萬美元下降至本季的 1,520 萬美元。年初至今，我們已支出 2,990 萬美元。

Resource development drilling totaled $3.5 million for the quarter, with most of the spending focused on the infill drilling of the South-East Deeps. Greenfield exploration work is ramping up with approximately $1 million incurred on exploration during this quarter. The joint venture made additional capital distribution of $35 million subsequent to the end of the quarter on October 30, bringing the total capital distributions to the partners for 2023 to $85 million. This is $30 million more than the $55 million of dividends paid in 2022.

本季資源開發鑽探總額為 350 萬美元，其中大部分支出集中在東南深部的加密鑽探。綠地勘探工作正在加緊進行，本季勘探費用約為 100 萬美元。該合資企業於 10 月 30 日季度末追加了 3,500 萬美元的資本分配，使 2023 年合作夥伴的資本分配總額達到 8,500 萬美元。這比 2022 年支付的 5,500 萬美元股息多了 3,000 萬美元。

Now turning to Slide 6 to look at the financial results of the 70% owned Los Gatos joint venture for the quarter. Revenue decreased by 9% in Q3 2023 compared to the same period last year. The decrease in revenue is primarily due to decreases in sales volume of silver, zinc and lead due to lower grades and a decrease in the average realized zinc price of 29%, partly offset by an increase in average realized price of silver and lead.

現在轉向幻燈片 6，查看持有 70% 股份的洛斯加托斯合資企業本季的財務業績。 2023 年第三季營收較去年同期下降 9%。收入下降的主要原因是銀、鋅和鉛的銷售因品位較低而減少，以及鋅的平均實現價格下降了 29%，但部分被銀和鉛的平均實現價格上漲所抵消。

Cost of sales for the quarter increased by 10%, primarily as a result of the increased purchasing costs as a result of higher mill throughput, the strengthening of the Mexican peso against the U.S. dollar and inflationary cost pressures in the period partly offset by cost reduction initiatives as part of our continuous improvement program.

本季度銷售成本增加了 10%，主要是由於工廠產量增加導致採購成本增加、墨西哥比索兌美元走強以及該期間通膨成本壓力被成本削減部分抵消作為我們持續改進計劃一部分的舉措。

Depreciation, depletion and amortization expense decreased by approximately 16% primarily due to the increase in mineral reserves and the extension of the life of mine. An income tax recovery of $900,000 was recorded in Q3 2023 compared to income tax expense of $6.7 million in Q3 2022. The income tax recovery is due to the reduction in the valuation allowance on the deferred tax assets related to PPE and mine development as a result of the increase in the mineral reserves and resources, allowing for additional future income tax deductions to be realized.

折舊、折耗及攤銷費用下降約16%，主要是由於礦產儲量的增加和礦山壽命的延長。 2023 年第三季的所得稅回收為90 萬美元，而2022 年第三季的所得稅費用為670 萬美元。所得稅回收是由於與PPE 和礦山開發相關的遞延稅資產的估值備抵減少所致。礦產儲量和資源的增加，允許未來實現額外的所得稅扣除。

Finally, the LGJV had net income of $15.1 million for the quarter, 16% greater than the $13 million recorded in Q3 2022.

最後，LGJV 本季淨利潤為 1,510 萬美元，比 2022 年第三季的 1,300 萬美元成長 16%。

Now let's move to Slide 7 to look at the financial results for Gatos Silver. For the quarter ended September 30, 2023, Gatos Silver recorded net income of $3.3 million or $0.05 per share, in line with the $0.05 per share recorded in Q3 2022. Equity income in affiliates increased by 6%, primarily as a result of the higher net income recorded at the joint venture.

現在讓我們轉到幻燈片 7，看看 Gatos Silver 的財務表現。截至2023 年9 月30 日的季度，Gatos Silver 錄得淨利潤330 萬美元，即每股0.05 美元，與2022 年第三季度的每股0.05 美元一致。附屬公司的股本收入增長6%，主要是由於合資企業記錄的淨利潤。

Corporate G&A was approximately $1.6 million higher in Q3 2022 mainly due to a $1.8 million noncash stock-based compensation charge as a result of an equity grant after an extended blackout period, which was partly offset by lower consulting fees.

2022 年第三季度，企業一般管理費用增加了約160 萬美元，主要是由於延長禁售期後的股權授予導致了180 萬美元的非現金股票補償費用，但諮詢費用的降低部分抵消了這一費用。

Slide 8. Early in the third quarter, Gatos Silver [paid off] the remaining $9 million balance on its revolving credit facility and both the GSI and LGJV are debt free. Gatos Silver has the full $50 million available for withdrawal under its revolving credit facility. The LGJV ended the quarter with a cash balance of approximately $47 million and paid a capital distribution of $35 million to its partners, Gatos Silver and Dowa on October 30 of which we received $24.5 million. After the capital distribution, the joint venture remained well funded with approximately $21 million in cash.

投影片 8。第三季初，Gatos Silver [還清了] 其循環信貸額度剩餘的 900 萬美元餘額，GSI 和 LGJV 都沒有債務。 Gatos Silver 在其循環信貸額度下擁有 5,000 萬美元的全額可提取資金。 LGJV 本季末現金餘額約為 4,700 萬美元，並於 10 月 30 日向其合作夥伴 Gatos Silver 和 Dowa 支付了 3,500 萬美元的資本分配，其中我們收到了 2,450 萬美元。資本分配後，該合資企業仍擁有充足的資金，現金約 2,100 萬美元。

Gatos Silver ended the quarter with a cash balance of $33.5 million, which increased to $57.7 million at the end of October at the receipt of its portion of the capital distribution made by the LGJV. The company and the Los Gatos Joint Venture are well positioned to continue to execute on growth opportunities.

Gatos Silver 本季末的現金餘額為 3,350 萬美元，在收到 LGJV 的資本分配部分後，現金餘額在 10 月底增加至 5,770 萬美元。該公司和洛斯加托斯合資企業處於有利地位，可以繼續抓住成長機會。

I will now hand it back to Dale.

我現在將把它還給戴爾。

Thanks, Andre. And turning to Slide 9. As mentioned previously, we have increased our full year silver and silver equivalent production guidance. Silver production is now expected to be between 8.8 million and 9.3 million ounces compared with the original guidance of 7.4 million to 8.2 million ounces. This represents an increase of 19% at the low end of the range and 13% at the high end.

謝謝，安德烈。轉向投影片 9。如前所述，我們提高了全年白銀和白銀當量產量指引。目前白銀產量預計在 880 萬至 930 萬盎司之間，而最初指導產量為 740 萬至 820 萬盎司。這意味著範圍低端增加了 19%，高端增加了 13%。

Silver equivalent production is now expected to be between 13.8 million and 14.6 million ounces compared with the original guidance of 12.4 million to 13.8 million ounces on a silver equivalent basis. This represents an increase of 11% at the low end and 6% at the high end of the range.

目前白銀當量產量預計在 1,380 萬至 1,460 萬盎司之間，而原始指導值以白銀當量計算為 1,240 萬至 1,380 萬盎司。這意味著該範圍的低端增加了 11%，高端增加了 6%。

So we have higher silver grades and slightly lower base metal grades anticipated in the fourth quarter compared to the previous plan. Based on the revised mine plan sequencing, we expect full year zinc and gold production to be near the low end of the original guidance ranges.

因此，與先前的計劃相比，我們預計第四季度的白銀品位較高，基本金屬品位略低。根據修訂後的礦山計劃排序，我們預計全年鋅和金產量將接近原指導範圍的低端。

Full year lead production is expected to be within the upper half of the original guidance range of 36 million to 40 million pounds. We expect full year co-product and by-product all-in sustaining costs to remain in the lower half of the original guidance ranges, and we continue to expect sustaining capital expenditures at the Cerro Los Gatos Mine of approximately $45 million in 2023 with about $30 million spent in the first 9 months of 2023.

預計全年鉛產量將在原指導範圍 3,600 萬至 4,000 萬磅的上半部內。我們預計全年聯產品和副產品總體維持成本將保持在原始指導範圍的下半部分，並且我們繼續預計 2023 年 Cerro Los Gatos 礦的維持資本支出約為 4500 萬美元，其中約2023 年前9 個月花費了3000 萬美元。

On Slide 10, our updated life of mine and mineral reserve that we announced on September 6 of this year, extended our current mine life to the end of 2030, and we believe we have substantial additional upside that we are focused on realizing. There are currently 7 surface drill rigs and 3 underground rigs actively drilling at the mine with 5 surface drills focused on infill drilling of the South-East Deeps area at Cerro Los Gatos targeting to add 3 to 4 years to the mine life by the third quarter of 2024, and that's through conversion of the higher-grade portions of the inferred resources that we also announced just recently in September.

在幻燈片 10 上，我們在今年 9 月 6 日宣布更新了礦山和礦產儲量的壽命，將目前的礦山壽命延長至 2030 年底，我們相信我們還有大量額外的優勢，我們正在重點實現這一點。目前，該礦有 7 台露天鑽機和 3 台地下鑽機正在積極鑽探，其中 5 台露天鑽機專注於 Cerro Los Gatos 東南深部地區的加密鑽探，目標是到第三季度將礦山壽命延長 3 至 4 年2024年，這是透過轉換推斷資源的較高品位部分來實現的，我們最近也在9 月宣布了這一點。

In addition to the South-East Deeps drilling, we have several other high-priority targets located within a couple of kilometers of the mine as well as more than 50 targets across our [expansive] 103,000 hectares concession package. Both near mine and district targets will be an increasing focus for the team for the remainder of 2023 and as we move into 2024.

除了東南深部鑽探之外，我們還有位於礦場幾公里範圍內的其他幾個高優先目標，以及我們 103,000 公頃特許權包中的 50 多個目標。在 2023 年剩餘時間內以及進入 2024 年時，近礦區和地區目標都將成為團隊的日益關注的焦點。

Turning to Slide 11. This plan map shows a few of the key targets we will be following up over the next 12 or so months that are within a couple of kilometers of the existing mine workings. We are currently drilling at both Portigueno and Cascabel. Portigueno is located roughly 1 kilometer along strike from the South-East Deeps zone and Cascabel which is located about 1 kilometer southwest of the mine is a strongly altered large fault structure parallel to the main fault structures at Cerro Los Gatos.

轉向投影片 11。這張規劃圖顯示了我們將在未來 12 個月左右的時間內跟進的一些關鍵目標，這些目標位於現有礦場幾公里範圍內。我們目前正在波爾蒂格諾和卡斯卡貝爾進行鑽探。 Portigueno 位於東南深部地帶約 1 公里處，Cascabel 位於礦區西南約 1 公里處，是一個強烈蝕變的大型斷層結構，與 Cerro Los Gatos 的主要斷層結構平行。

We already have a few intercepts in the Northwest offset zone from the previous drilling in 2021 and 2022 and we are planning to follow up on those hits with our underground drills from existing development now that we are deep enough to hit it from a good angle.

我們已經在2021 年和2022 年的先前鑽探中在西北偏移區進行了一些攔截，我們計劃通過現有開發的地下鑽探來跟進這些鑽探，因為我們的深度足夠深，可以從一個好的角度進行鑽探。

Our expectation is that it will be 2024 before we get to some of the other district targets. And so we have no shortage of exciting targets to keep us busy next year. In closing, we are looking forward to some of the exciting catalysts for the remainder of the year. We will continue to drive productivity improvements and cost optimization, which is a core part of our business and operating strategy.

我們的預期是到 2024 年我們才能實現其他一些地區目標。因此，明年我們不乏令人興奮的目標讓我們忙碌。最後，我們期待今年剩餘時間出現一些令人興奮的催化劑。我們將繼續推動生產力提高和成本優化，這是我們業務和營運策略的核心部分。

As mentioned earlier, we are debt-free and GSI has a cash -- Gatos Silver has a cash balance of close to $58 million. We expect to continue to receive regular cash distributions from the Los Gatos joint venture with strong operating margins and cash flow. We remain focused on extending the mine life by the third quarter of next year through infill drilling and conversion of the South-East Deeps zone with more than half of that infill drilling already complete. And we are very excited as we start to increase our near mine and district drilling in large highly prospective district through the end of this year and into next.

正如前面提到的，我們沒有債務，GSI 有現金——Gatos Silver 的現金餘額接近 5800 萬美元。我們預計將繼續從擁有強勁營業利潤和現金流的洛斯加托斯合資企業獲得定期現金分配。我們仍然致力於透過加密鑽探和東南深部區域的改造，在明年第三季之前延長礦山壽命，其中超過一半的加密鑽探已經完成。我們非常興奮，因為我們開始在今年年底和明年增加在大型高前景地區的近礦和區域鑽探。

I will now hand it back to the operator for questions. Thank you.

我現在將其交還給接線員以供提問。謝謝。

(Operator Instructions) Your first question comes from the line of Cosmos Chiu with CIBC.

（操作員說明） 您的第一個問題來自 CIBC 的 Cosmos Chiu 專線。

But -- maybe first off on your guidance. Congrats on increasing your guidance for the year. If I recall when we talked in Q1, you talked about expecting a stronger first half, less strong second half. You touched on it, but I'm just trying to confirm what has changed? Is it higher grades? Are you seeing better grade reconciliation? Or is it really just mine sequencing you're continuing longer with the higher-grade stopes? Or is it throughput as well? I'm just trying to get a better sense in terms of what happened.

但是——也許首先需要你的指導。恭喜您增加了今年的指導。如果我記得我們在第一季交談時，您談到預計上半場會更強，而下半場則不太強勁。你提到了它，但我只是想確認一下發生了什麼變化？是不是等級比較高？您是否看到更好的成績調節？或者這真的只是我的排序，你會繼續使用更高品味的採場更長的時間？或者說它也是吞吐量？我只是想更了解發生的事情。

Yes. Thanks for the question, Cosmos. And -- yes, really pleased to be able to increase our guidance. And I think it's a combination of all of those things. We are seeing higher throughput. We are seeing improved recoveries. We're in a particular area of the mine, both in the Northwest and Central Zone, which is the highest-grade portion. Those are difficult to predict in the sense that quarter-over-quarter variations can be fairly significant when we're into the highest-grade portion. So it's a bit of that. And then it's just optimizing the mine plan as we progress through the year compared to the original mine plan and expectations at the start of the year.

是的。謝謝你的提問，宇宙。而且——是的，非常高興能夠增加我們的指導。我認為這是所有這些事情的結合。我們看到吞吐量更高。我們看到復健情況有所改善。我們位於礦井的一個特定區域，位於西北和中部區域，這是品位最高的部分。這些很難預測，因為當我們進入最高等級部分時，季度環比的變化可能相當大。所以有點這樣。然後，與最初的採礦計劃和年初的預期相比，隨著我們在這一年中的進展，它只是優化採礦計劃。

So it's a combination of all of those things. Originally, we had expected higher silver in the first half and a little bit higher base metals grade in the second half. We're seeing the higher silver continue throughout the year, so it's more consistent with these [grade] zones that we're in and the base metals is a little bit lower than we expected, particularly in the second half here.

所以它是所有這些事情的組合。最初，我們預計上半年白銀價格會上漲，下半年基本金屬品位會略有上漲。我們看到白銀的價格全年持續走高，因此它與我們所處的這些[品位]區域更加一致，而基本金屬的價格略低於我們的預期，特別是在下半年。

Great. And how does it usually work, Dale, when the silver grade goes up? Do the base metal grades usually also go up as well? Can you just remind us?

偉大的。戴爾，當白銀等級上升時，通常是如何運作的？賤金屬等級通常也會提升嗎？你能提醒我們一下嗎？

It really depends on the area that we're in. Typically, with our deposit, we tend to be more silver rich at the top of the deposit and more base metals rich towards the bottom, but where we are in the highest grade portions of the Central and Northwest zone, we're seeing both pretty good silver grades as well as base metal grades.

這實際上取決於我們所在的區域。通常，對於我們的礦床，我們往往在礦床頂部富含更多的銀，而在底部則富含更多的賤金屬，但我們位於礦床最高品位的部分。在中部和西北地區，我們看到了相當好的白銀品位和賤金屬品位。

And maybe it's too early to ask, but I'm sure you're going through the budgeting process right now for 2024. With the increase in guidance for 2023 and what you've seen in terms of good operations at the asset in 2023. Any kind of read-through that we can carry on to for 2024 at a high level?

也許現在問還為時過早，但我確信您現在正在執行 2024 年的預算流程。隨著 2023 年指導的增加以及您在 2023 年資產良好運營方面所看到的情況。我們可以在2024 年進行任何類型的高水準通讀嗎？

Yes. I would just flag for the last 8 or 9 quarters, we've delivered very stable and consistent production, both on a throughput recovery and obviously, there's variation due to grades. We expect that stable operation throughput recoveries to continue into 2024. As you mentioned, we still are going through the budgeting process. We'll continue to optimize the mine plan as we do that.

是的。我只想指出，在過去的 8 或 9 個季度中，我們交付了非常穩定和一致的生產，無論是在吞吐量恢復方面，還是顯然，由於等級而存在變化。我們預計營運吞吐量的穩定復原將持續到 2024 年。正如您所提到的，我們仍在進行預算流程。在此過程中，我們將繼續優化採礦計劃。

So I'm hesitant to give any further color on 2024 while we go through that process. But you shouldn't expect any surprises compared to the life of mine plan we put out.

因此，在我們完成這一過程期間，我不太願意對 2024 年給予任何進一步的解釋。但與我們提出的我的生命計畫相比，你不應該期待任何驚喜。

Sounds good. Maybe switching gears a little bit on Mexico. It's good to hear, Dale, that you're able to contain cost -- well costs have increased, but you offset it with operational efficiencies. Number one, I want to confirm that you've been able to offset the cost increases through operational efficiency, at least most of it; and number two, it's regarding sort of the country itself. We've seen some other mining companies in Mexico have security issues. I just want to confirm that there's no issues in terms of where are you at and no issues in terms of the asset itself.

聽起來不錯。也許在墨西哥問題上稍微改變態度。戴爾，很高興聽到您能夠控製成本——油井成本增加了，但您可以透過營運效率來抵消它。第一，我想確認您已經能夠透過營運效率（至少大部分）來抵銷成本增加；第二，它與國家本身有關。我們看到墨西哥的其他一些礦業公司也存在安全問題。我只是想確認一下，您所在的位置以及資產本身都沒有問題。

Yes, thanks again Cosmos. And just on the -- I'll answer the cost question first. We're doing a good job containing costs, obviously, and we're no different than any of the other mine companies in Mexico. We're exposed to the Mexican -- strong -- much stronger Mexican peso over the last 12 or so months. So that is obviously applying some pressure and (inaudible) inflationary pressures. But our continuous improvement program, I'm really proud of our team and the work that we've done. We've got some great initiatives. This year, we're really focusing on -- back half of this year on maintenance improvement, including equipment availabilities and utilizations, continuing to see some great impacts from that work and that work will continue that and other projects as we head into 2024.

是的，再次感謝宇宙。我將首先回答成本問題。顯然，我們在控製成本方面做得很好，我們與墨西哥的其他礦業公司沒有什麼不同。在過去 12 個月左右的時間裡，我們面臨著墨西哥比索的強勢——墨西哥比索的強勢。因此，這顯然是在施加一些壓力和（聽不見的）通膨壓力。但我們的持續改進計劃，我真的為我們的團隊和我們所做的工作感到自豪。我們有一些很棒的舉措。今年，我們真正關注的是今年下半年的維護改進，包括設備可用性和利用率，繼續看到這項工作產生的一些巨大影響，並且在我們進入2024 年時，這項工作將繼續下去以及其他項目。

So I'm confident that we can offset these pressures. I would just flag on a quarter-by-quarter basis, it's important not to read too much into our site costs, there can be slight variations depending on inventory adjustments or timing of expenditures. But in general, if you look at our cost of sales profile for the last 12 months, it sits quite well, and we don't expect any big swings with continued cost savings and reduction initiatives that we have underway.

所以我相信我們能夠抵銷這些壓力。我只想按季度進行標記，重要的是不要過多地了解我們的網站成本，根據庫存調整或支出時間，可能會有細微的變化。但總的來說，如果你看看我們過去 12 個月的銷售成本概況，你會發現它相當不錯，而且我們預計我們正在進行的持續成本節約和削減舉措不會出現任何大的波動。

Just to answer the question on Mexico and the security in particular. We're comfortable operating where we are. I think this is quite regional based. We know other companies have had some concerns. We're always cautious and -- but we're in an area that is relatively safe on a comparable basis compared to other areas in Mexico. We have a great relationship with our local community, San José del Sitio. And as I said, we have no security concerns at the mine site and so on.

只是回答有關墨西哥，特別是安全問題的問題。我們在現有位置上運作自如。我認為這是基於區域的。我們知道其他公司也有一些擔憂。我們始終保持謹慎態度，但與墨西哥其他地區相比，我們所在的地區相對安全。我們與當地社區 San José del Sitio 有著良好的關係。正如我所說，我們在礦場等方面沒有安全問題。

(Operator Instructions) There are no further questions at this time. Mr. Andres, I turn the call back over to you.

（操作員說明） 目前沒有其他問題。安德烈斯先生，我將電話轉回給您。

Thanks, operator, and thanks to everyone who participated in the call. We look forward to continuing to update you as we progress with our operating performance. And most importantly, as we head into 2024, updating on our exploration results and continued progress on our life extension work. So thank you all.

謝謝接線員，也謝謝所有參與通話的人。隨著我們經營業績的進展，我們期待繼續向您通報最新情況。最重要的是，隨著我們進入 2024 年，我們將更新我們的勘探結果並在延長壽命的工作上不斷取得進展。謝謝大家。

This concludes today's conference call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。