Gatos Silver Inc (GATO) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Gatos Silver's first quarter 2024 results conference call. Presenting today will be Dale Andres, CEO of Gatos Silver, and Andre van Niekerk, Chief Financial Officer.

女士們、先生們，感謝你們的支持，並歡迎參加 Gatos Silver 2024 年第一季業績電話會議。今天出席會議的有 Gatos Silver 執行長 Dale Andres 和財務長 Andre van Niekerk。

(Operator Instructions) Turning your attention to slide 2, please note today's call contains forward-looking statements. Various risk and uncertainties may cause actual results to vary, but the silver does not assume the obligation to update any forward-looking statements.

（操作員說明）請注意投影片 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，但白銀不承擔更新任何前瞻性聲明的義務。

I would now like to turn the call over to Dale Andres, please go ahead.

我現在想把電話轉給戴爾·安德烈斯，請繼續。

Thank you, operator, and good morning, everyone. Turning to slide 3, our strong operating performance and cash flow generation continued in the first quarter of 2024. So most catalyst joint venture set yet another record mill throughput rate. During the quarter, we averaged a mill throughput rate of over 3,200 tonnes per day, and we are well on our way to our medium-term target of sustainable production at 3,500 tonnes per day.

謝謝接線員，大家早安。轉向投影片 3，我們在 2024 年第一季繼續保持強勁的經營業績和現金流產生。因此，大多數催化劑合資企業創下了工廠生產力的另一個紀錄。本季度，我們的工廠平均吞吐量超過 3,200 噸/天，並且正在順利實現每天 3,500 噸的可持續生產中期目標。

Our first quarter production puts us in a strong position for the remainder of the year. And the surplus capital is production is expected in the top half of our guidance range as a result of the strong operating performance this quarter. Our all-in sustaining cost metrics for the full year are expected to remain in the lower half of the guidance range despite the strengthening peso and inflationary pressures Gatos Silver continues to receive regular cash distributions from the joint venture.

我們第一季的產量使我們在今年剩餘時間內處於有利地位。由於本季強勁的經營業績，預計剩餘資本產量將位於我們指引範圍的上半部。儘管比索走強和通膨壓力加大，但我們全年的整體維持成本指標預計仍將保持在指導範圍的下半部分。

Andre will talk about this in more detail, but I do want to highlight the Los Gatos joint ventures free cash flow of over $25 million in the first quarter of 2024 and continuing distributions received in April of this year.

安德烈將更詳細地討論這一點，但我確實想強調洛斯加托斯合資企業 2024 年第一季超過 2500 萬美元的自由現金流以及今年 4 月收到的持續分配。

Capital silver had a cash balance of over $85 million at the end of April. We are on track to update our life of mine plan in the third quarter this year and are aiming to increase throughput and also extend the mine life. Importantly, we have now started to ramp up exploration efforts on both near-mine and other targets in the highly prospective Los Gatos district.

截至 4 月底，Capital Silver 的現金餘額超過 8,500 萬美元。我們預計在今年第三季更新礦山壽命計劃，旨在提高產量並延長礦山壽命。重要的是，我們現在已開始增加對前景廣闊的洛斯加托斯地區近礦區和其他目標的勘探力度。

Turning to slide 4. As mentioned before, mill throughput in the quarter was over 3,200 tonnes per day with the higher throughput offset by lower silver grades as expected in the mine plan production was similar compared to the comparable quarter in 2023 for silver at 2.4 million ounces and silver equivalent production, which includes zinc, lead and gold and now starting copper soon at 3.7 million ounces for the quarter. In March, we achieved an average mill throughput rate of over 3,300 tonnes per day, which was the best monthly performance on record with some minor modifications to the mill made this year.

轉到投影片 4。如前所述，該季度的工廠吞吐量每天超過3,200 噸，較高的吞吐量被礦山計劃中預期的白銀品位較低所抵消，與2023 年同期相比，白銀產量為240 萬盎司，白銀當量產量也與2023 年同期相似。3 月份，我們實現了每天超過 3,300 噸的平均工廠吞吐量，這是有史以​​來最好的月度業績，並且今年對工廠進行了一些小修改。

And we believe the current mill capacity is already at the 3,500 tonne per day rate on a calendar day basis. However, to achieve these levels through the mill, we need to first show that we can sustain and then increase mining rates, which continue to be the bottleneck. We have various initiatives underway to increase those mining rates, including rebuilding the core mining fleet for their maintenance improvement projects, optimizing mine plans and schedules to support the higher rates and a major focus on operational execution, including short interval control.

我們相信目前工廠的產能已經達到每天 3,500 噸（按日曆日計算）。然而，要透過工廠達到這些水平，我們需要先證明我們可以維持然後提高採礦率，這仍然是瓶頸。我們正在採取各種措施來提高採礦率，包括重建核心採礦隊以進行維護改進項目、優化採礦計劃和時間表以支持更高的採礦率，以及重點關注營運執行，包括短期間隔控制。

Cost of sales for the first quarter increased by 18% compared to the comparable quarter last year, but this was primarily due to the 12% increase in tonnes processed and a 17% increase in the concentrate tons sold. Cost of sales were also impacted by the continued strengthening of the Mexican peso during the quarter, all-in sustaining costs per payable ounce of silver, and that's after by-product credits. We're just over $10 an ounce compared to just over $6 an ounce in the first quarter of 2023, and that is in the lower half of our guidance range for 2024. We now expect full year production to be in the upper half of our guidance range for 2024.

與去年同期相比，第一季的銷售成本增加了 18%，但這主要是由於加工噸數增加了 12%，銷售精礦噸數增加了 17%。銷售成本也受到本季度墨西哥比索持續走強的影響，每盎司白銀的整體維持成本（扣除副產品信貸後）。與 2023 年第一季每盎司略高於 6 美元相比，我們的價格略高於每盎司 10 美元，這處於我們 2024 年指導範圍的下半部分。我們現在預計 2024 年全年產量將位於我們指導範圍的上半部。

And I'm speaking to slide 5 now. As you can see in the table, silver and silver equivalent production are at 27% and 26%, respectively, compared to the midpoint of guidance. And our unit cost metrics are tracking 4% below midpoint in the first quarter. Based on the strong performance in the first quarter, we now expect throughput rates at the Serra Los Gatos mine to average in the top half of our 3,000 to 3,300 tonne per day guidance range in 2024.

我現在正在講第 5 張投影片。如表所示，與指導中位數相比，白銀和白銀當量產量分別為 27% 和 26%。我們的單位成本指標比第一季中點低 4%。基於第一季的強勁表現，我們現在預計 2024 年 Serra Los Gatos 礦山的平均吞吐量將達到我們每天 3,000 至 3,300 噸指導範圍的上半部分。

For the full year, we still expect exploration and definition drilling spend to be at $18 million for 2024 and our sustaining capital expenditures to be approximately $45 million, and that's with the majority of that spent on underground development with the continued focus on opening up the southeast area and some of those mine equipment rebuilds and other infrastructure projects.

就全年而言，我們仍然預計 2024 年勘探和定義鑽探支出為 1800 萬美元，我們的持續資本支出約為 4500 萬美元，其中大部分支出用於地下開發，並繼續重點關注開放東南地區以及部分礦山設備改造等基礎建設項目。

As I mentioned, I will now turn the call over to Andres to present our financial results.

正如我所提到的，我現在將把電話轉給安德烈斯，介紹我們的財務表現。

Thank you, Dale. Good morning, everyone. The 70% and Los Gatos joint venture, strong operating performance is underscored by yet another quarter of robust cash flow generation. Cash flow provided by operations was approximately $37 million. The joint venture generated free cash flow of $25.5 million this quarter, 14% higher than the $22.3 million in Q4 2023 and 11% lower than the $28.7 million in Q1 2023.

謝謝你，戴爾。大家，早安。這家持股 70% 的公司與洛斯加托斯 (Los Gatos) 成立的合資企業，強勁的營運業績得益於又一個季度強勁的現金流生成。營運提供的現金流量約為 3700 萬美元。該合資企業本季產生了 2,550 萬美元的自由現金流，比 2023 年第四季的 2,230 萬美元高出 14%，比 2023 年第一季的 2,870 萬美元低 11%。

The drop from the comparable quarter last year was primarily due to lower realized metal prices and higher operating costs and in Q1 2023 associated largely with higher mining and processing rates. Cash flow used in investing activities was $11.8 million in Q1 2024 and similar to the $11.4 million in Q1 2023 of that amount, resource development drilling totaled $3.2 million for the quarter, with most of the spending focused on the infill drilling on the southeast states.

與去年同期相比的下降主要是由於實現的金屬價格較低和營運成本較高，而 2023 年第一季主要與採礦和加工率較高有關。2024 年第一季投資活動使用的現金流為1,180 萬美元，與2023 年第一季的1,140 萬美元相似，該季度資源開發鑽探總額為320 萬美元，其中大部分支出集中在東南部各州的加密鑽探。

As a result of the continued strong free cash flow generation in the first quarter, the joint venture made a capital distribution of $30 million in February. As a reminder, a total of $85 million was distributed in 2023. Subsequent to the end of the quarter. In April, the joint venture made a further quarterly capital distribution to the partners of $25 million.

由於第一季自由現金流持續強勁，該合資企業在 2 月進行了 3,000 萬美元的資本分配。提醒一下，2023 年總共分配了 8,500 萬美元。到本季末後。4 月份，該合資企業向合作夥伴進一步季度資本分配 2,500 萬美元。

Now turning to slide 7 to look at the financial results of the Los Gatos joint venture for the quarter, revenue increased to $72.2 million in the first quarter of 2024. Higher volumes of metal sold were offset by significantly lower silver, zinc and lead prices. The provisional revenue adjustment was a $900,000 negative adjustment in this quarter compared to a $13.6 million negative adjustment in Q1 2023.

現在轉向幻燈片 7，查看洛斯加托斯合資企業本季的財務業績，2024 年第一季營收增至 7,220 萬美元。金屬銷售量的增加被銀、鋅和鉛價格的大幅下跌所抵消。本季的臨時收入調整為 90 萬美元的負調整，而 2023 年第一季的臨時收入調整為 1,360 萬美元。

Cost of sales increased by 18%, primarily due to higher mining and processing costs as a result of a 12% increase in mill throughput and a 17% increase in the tonnage of concentrates sold. Cost of sales were further impacted by the strengthening of the Mexican peso against the US dollar which was partly offset by productivity improvement and cost reduction initiatives as part of our continuous improvement program.

銷售成本增加 18%，主要是由於工廠產量增加 12% 以及銷售精礦噸位增加 17%，導致採礦和加工成本增加。墨西哥比索兌美元走強進一步影響了銷售成本，但生產力提高和成本削減措施（作為我們持續改進計劃的一部分）部分抵消了這一影響。

Depreciation, depletion and amortization expense decreased by approximately 3%, primarily due to the increase in the mineral reserves and the extension of the mine life offset by additional DD&A on recent capital additions.

折舊、消耗和攤銷費用下降約 3%，主要是由於礦產儲量的增加和礦山壽命的延長被近期資本增加的額外 DD&A 所抵消。

The income tax expense of $4.8 million for the quarter was 20% lower than in Q1 2023, primarily due to lower taxable income for the period.

該季度的所得稅費用為 480 萬美元，比 2023 年第一季低 20%，主要是由於該期間應稅收入較低。

Finally, the LG JV recorded net income of approximately $10.2 million for the quarter, 20% lower than in Q1 2023.

最後，LG 合資公司本季淨利約 1,020 萬美元，較 2023 年第一季下降 20%。

Moving on to slide 8 to review the financial results for Gatos Silver schedule. Silver recorded net income of $2.5 million or $0.04 per basic and diluted share. That's up 203% from Q1 2023. The equity income in affiliates increased to $7.3 million, primarily due to a reduction in the obligation under the priority distribution agreement with Delta, partly offset by lower equity income from the LGJV. corporate G&A was approximately $1.4 million higher than in Q1 2024 than in Q1 2023, mainly due to a $900,000 increase in non-cash stock-based compensation expense as a result of 2023 and 2024 equity grants and a $600,000 increase in nonrecurring legal fees.

繼續看幻燈片 8，回顧 Gatos Silver 計劃的財務結果。Silver 錄得淨利潤 250 萬美元，即每股基本股和稀釋股淨利 0.04 美元。較 2023 年第一季成長 203%。附屬公司的股權收入增加至 730 萬美元，主要是由於與達美航空簽訂的優先分配協議中的義務減少，但 LGJV 的股權收入減少部分抵消了這一影響。企業一般管理費用比2024 年第一季比2023 年第一季高出約140 萬美元，主要是由於2023 年和2024 年股權授予導致非現金股票薪酬費用增加90 萬美元，以及非經常性法律費用增加60 萬美元。

Turning to Slide 9. As was mentioned earlier, the joint venture paid a capital distribution of $30 million to use partners to silver Endava during the first quarter, of which we received [$21 million] as a result of slower ended the first quarter with a cash balance of $70.6 million after the end of the quarter. In April, the LG JV made another capital distribution of $25 million, of which we received $17.5 million, bringing the company's cash balance to $85.4 million at April 30, 2024.

轉向幻燈片 9。如同前面所提到的，該合資企業在第一季支付了3000 萬美元的資本分配，以便利用合作夥伴為Endava 提供銀牌，其中我們收到了[2100 萬美元]，因為第一季結束時現金餘額為7060 萬美元。4 月份，LG 合資公司再次進行了 2,500 萬美元的資本分配，我們收到了其中的 1,750 萬美元，使公司截至 2024 年 4 月 30 日的現金餘額達到 8,540 萬美元。

The company, along with these insurers has also fully funded both the US and Canadian Class Action losses and the cash balance at the end of April after our portion of the payments have been made. The distribution of the settlement amounts is now pending final court approval, which we expect by the end of Q2. The LG JV ended the first quarter with a cash balance of $29.8 million and had a cash balance of $20 million at April 30, 2024. Both GSILDLGJV. remain debt free and the company's $50 million revolver remains in place.

在我們支付部分款項後，該公司以及這些保險公司還為美國和加拿大集體訴訟損失以及四月底的現金餘額提供了全額資金。和解金額的分配目前正在等待法院的最終批准，我們預計將在第二季末完成。LG 合資公司第一季末的現金餘額為 2,980 萬美元，截至 2024 年 4 月 30 日的現金餘額為 2,000 萬美元。均為 GSILDLGJV。仍然沒有債務，公司價值 5000 萬美元的左輪手槍也仍然存在。

I will now hand it back to Dale.

我現在將把它還給戴爾。

Thanks, Andres. Turning to Slide 10, we wanted to highlight how our business improvement initiatives and increased throughput are delivering results at the mine site. Operating costs per tonne have decreased by 9% over the past three years to split despite inflationary pressures, including the 5.5% per year increase in labor costs and a substantial strengthening of the Mexican peso. Our numerous continuous improvement and cost optimization programs also contribute to the lower cost per ton.

謝謝，安德烈斯。轉向幻燈片 10，我們想要強調我們的業務改進計劃和增加的吞吐量如何在礦場中取得成果。儘管存在通貨膨脹壓力，包括勞動成本每年增加 5.5% 以及墨西哥比索大幅走強，但過去三年每噸營運成本仍下降了 9%。我們眾多的持續改善和成本優化計劃也有助於降低每噸成本。

On the design side, we have successfully switched more of our mining areas from cut and fill to long-hole stoping, including transverse stopes where the geometry and ground conditions are suitable, which is a more cost effective mining method. We are continuing our equipment rebuild program this year and working on our underground productivity initiatives to work towards first, sustainable sustainably mining at the 3,200 to 3,300 tonne per day rate, which we're currently achieving. And then to further extend that towards the 3,500 tonnes per day in the medium term.

在設計方面，我們已成功地將更多採礦區域從充填法轉變為深孔採礦法，包括幾何形狀和地面條件合適的橫向採場，這是一種更具成本效益的採礦方法。今年我們將繼續實施設備重建計劃，並致力於地下生產力計劃，以實現我們目前正在實現的每天 3,200 至 3,300 噸的開採速度。然後在中期進一步將產量擴大到每天 3,500 噸。

Turning to slide 11, we are on track to provide our updated life-of-mine plan and mineral reserves in the third quarter of 2024 this year and the throughput and targeting the throughput rate in the plan. The current plan averages 2,950 tonnes per day, and we're looking at increasing that, given with some even with mining more of our mineral reserves faster, we still expect an extension to the life of mine.

轉向幻燈片 11，我們預計將提供今年 2024 年第三季更新的礦山壽命計劃和礦產儲量，以及計劃中的吞吐量和目標吞吐量。目前的計劃平均每天開採 2,950 噸，我們正在考慮增加這一數量，因為即使有些礦產資源的開採速度更快，我們仍然期望延長礦山的使用壽命。

The new life-of-mine plan will be based on an additional 66 kilometers of drilling that's complete been completed over the past 12-month period up to the end of the first quarter. And we've now made that data cutoff and the Southeast deeps conversion drilling that we did between that April 2023 to end of March 2024 time frame was done on 50 meter spacing targeting the higher grade trends in the zone. We still have two drills dedicated to further infill drilling and resource expansion on the South East deeps.

新的礦山壽命計劃將基於截至第一季末的過去 12 個月內完成的額外 66 公里鑽探。現在，我們已經完成了數據截止，並且我們在 2023 年 4 月至 2024 年 3 月底的時間範圍內進行的東南深部轉換鑽探是在 50 米間距上完成的，目標是該區域的更高品位趨勢。我們還有兩個鑽孔機專門用於在東南深部進一步加密鑽探和資源擴張。

On the recovery side of things we are completing detailed engineering for a copper separation circuit and anticipate making a decision in the third quarter of this year. We are also evaluating technology and various options for increasing the recovery of silver, gold and zinc.

在恢復方面，我們正在完成銅分離電路的詳細工程，並預計在今年第三季做出決定。我們也正在評估提高銀、金和鋅回收率的技術和各種方案。

Turning to slide 12. This figure shows a few of the key targets at or within a few kilometers of the existing mine workings and potentially accessible from existing underground infrastructure. Now that we have passed that database cutoff for this year's reserve update, we are excited by the opportunity to ramp up the exploration work on the rest of our 103,000-hectare land package.

轉到投影片 12。該圖顯示了現有礦場或現有礦場幾公里範圍內的一些關鍵目標，並且可以透過現有地下基礎設施進行存取。現在我們已經過了今年儲備更新的資料庫截止日期，我們很高興有機會增加對 103,000 公頃土地的其餘部分的勘探工作。

After the end of the quarter, we announced the appointment of Chad, you have our new Vice President of Exploration and technical services, and we are really pleased to have Chad on board to guide these critical parts of our business. First up, we are starting on targets within three, three to four kilometers of the mine operations as it will be easiest to bring anything we find here into production. We do have two rigs working now towards the southeast of the mine and the port, the Glendale area, and the first tools stepped along the cattle salt and are now stepping self along the Dragon fall towards the two lead and real heartfelt talk targets.

本季末後，我們宣布任命乍得，我們新任勘探和技術服務副總裁，我們非常高興乍得加入來指導我們業務的這些關鍵部分。首先，我們的目標是距離礦場作業三、三到四公里範圍內，因為將我們在這裡找到的任何東西投入生產是最容易的。我們確實有兩台鑽機正在向礦井和港口、格倫代爾地區的東南部工作，第一批工具沿著牛鹽行走，現在正沿著龍瀑布向兩個領先且真正的真誠談話目標邁進。

A third greenfields rig will be moving on to the northwest deep target and central deeps targets from a and that's and then further out from the surplus gas was mined in the basin within the next few weeks, we will be getting the drill rigs further out from Cerro Los Gatos and the surrounding mine later in the year with some very prospective targets in the San Luis area, about five kilometers northwest of the mine and the number of targets in the Linz area for about 20 kilometers to the northwest.

第三個綠地鑽機將繼續前往西北深層目標和中央深層目標，然後在接下來的幾週內，距離該盆地開採的剩餘天然氣更遠，我們將使鑽機遠離該盆地。 Gatos 及週邊礦場將在礦場西北方約5 公里處的聖路易斯地區發現一些非常有前景的目標，並在西北方約20 公里處的林茨地區發現一些目標。

On slide 13, and in summary, we continue to safely drive mill throughput increases together with productivity improvements and cost optimization, which is a core part of our business and operating strategy. We remain focused on developing a new life-of-mine plan by the third quarter of this year, which incorporates the Southeast keeps conversion drilling together with other value-enhancing initiatives, including higher throughput rates and the copper circuits.

在投影片 13 中，總而言之，我們繼續安全地推動工廠吞吐量的增加，同時提高生產力和成本優化，這是我們業務和營運策略的核心部分。我們仍然專注於在今年第三季之前製定新的礦山壽命計劃，其中將東南部持續轉換鑽探與其他增值舉措結合起來，包括更高的吞吐量和銅循環。

We continue to be very excited as we start to increase our near-mine and district drilling in the large and highly prospective district, including particle annual and the Northwest and central Deeps, which I discussed. And importantly, we continue to generate strong operating margins and cash flow with regular distributions expected from the Los Gatos joint venture and a growing cash balance.

當我們開始增加在大型和高前景地區的近礦區和地區鑽探時，我們仍然感到非常興奮，包括我討論過的顆粒年度以及西北和中部深部。重要的是，我們將繼續產生強勁的營業利潤和現金流，預計洛斯加托斯合資企業將進行定期分配，現金餘額也將持續成長。

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

我現在將其交還給接線員以供提問。

(Operator Instructions) Cosmos Chiu, CIBC.

（操作員指示）Cosmos Chiu，CIBC。

HI, thanks Dale and Andre and team. And as I read, you know, certainly a lot of exploration upside here, Tom, but my question is on South East Deeps, I guess, and I was reading up on it. As you mentioned in your press release from early April that the silver grade decreases with higher by-product credits. When you look at South East deeps versus central Central Zone and the Northwest zones. So you know, right now your reserve grade is sitting at about 217 gram per tonne. What can we expect? And to the extent that you can, you know, kind of describe what can we expect as we come through and to with your life of mine plan that's getting updated in Q3?

您好，謝謝戴爾、安德烈和團隊。正如我所讀到的，你知道，湯姆，這裡肯定有很多探索的好處，但我想我的問題是關於東南深海的，我正在閱讀它。正如您在四月初的新聞稿中提到的那樣，白銀品位隨著副產品信用的增加而降低。當你觀察東南深處與中部地區和西北地區。所以您知道，現在您的儲備品位約為每噸 217 克。我們可以期待什麼？您知道，在某種程度上，您可以描述一下我們在經歷第三季更新的我的人生計劃時可以期待什麼？

Yes, thanks for the question, Cosmos and yes, I'm going to ask Tony to provide some color on that. But I will say we're right in the process of doing the resource modeling work and incorporating those drill results in the southeast Deeps. And so I don't think there's a lot we can say on a specific grade target. But Tony, do you want to comment further, please?

是的，感謝 Cosmos 提出這個問題，是的，我要請托尼提供一些相關資訊。但我要說的是，我們正在進行資源建模工作並將這些鑽探結果納入東南深海，這是正確的。所以我認為對於具體的成績目標我們沒有太多可以說的。但是托尼，你想進一步發表評論嗎？

Yeah, hi, Cosmos, thanks for the question. I'll probably just echo what Dale said. I mean, we think we've really just kicked it off so we like it. We can't comment until we've actually done the work and there's a lot of things that go into that in terms of where we end up on stope design where we like how much dilution get out of that. There's a whole bunch of stuff. I can really just sort of recommend you got to have a look at those I mean, I'm sure you have the exploration press releases that we put out. I mean what you can see from that when we report those effectively sort of similar cutoff to what we what we use for the reserve work.

是的，嗨，Cosmos，謝謝你的提問。我可能會重複戴爾所說的。我的意思是，我們認為我們真的剛開始，所以我們喜歡它。在我們真正完成工作之前，我們無法發表評論，而且在我們最終的採場設計方面，有很多事情需要考慮，我們希望從中獲得多少稀釋度。有一大堆東西。我真的可以建議您看看那些我的意思是，我確信您已經閱讀了我們發布的探索新聞稿。我的意思是，當我們報告這些實際上與我們用於儲備工作的類似截止值時，您可以從中看到什麼。

So what you'll see from that is that it's higher, higher base metals. That's a lot of good zinc lead and particularly copper in those, but the silver is lower. And so I mean, all I can do to guide you is to have a look at those, but we can't sort of commit to final numbers until we've actually done all the work.

所以你會從中看到它是更高、更高的賤金屬。其中有許多優質的鋅鉛，尤其是銅，但銀的含量較低。所以我的意思是，我能做的就是看看這些，但在我們真正完成所有工作之前，我們無法承諾最終的數字。

Of course, maybe asked a different way, Tony, it, Dale, you know, I see that your resource grade right now is 100 gram per tonne. Could you remind us was a lot of that resource from South East deeps?

當然，也許換個方式問，東尼，它，戴爾，你知道，我看到你現在的資源品位是每噸 100 克。你能提醒我們很多資源來自東南深處嗎？

Yes, a lot of the --

是的，很多--

Okay, So that's what you're trying to think it's good.

好吧，這就是你認為它是好的。

And Tony, you can expand on this, but let's say we're trying to convert. I think it's just over four. I think it's for 4 million -- 4.5 million or 4.6 million tons. If I if I recall correctly, Tony can correctly some of inferred resource in the southeast states and we're trying to convert the highest the highest grade portions of that obviously. And as Tony mentioned, the silver grades are expected to be lower than reserve grades based on that based on the results that we have. But base metals are holding in very, very nicely. And the copper is a key differentiator for that zone as well.

托尼，你可以對此進行擴展，但假設我們正在嘗試進行轉換。我想現在才四點多。我認為是 400 萬、450 萬噸或 460 萬噸。如果我沒記錯的話，東尼可以正確推斷出東南各州的一些資源，而我們顯然正在嘗試轉換其中最高品味的部分。正如東尼所提到的，根據我們的結果，白銀的品味預計將低於儲備品位。但基本金屬的表現非常非常好。銅也是該地區的關鍵區別因素。

And Dale and Tony, when we've talked about this in the past in the past, when you talked about the updated life of mine plans last year and this year as well. There was always a dual track in terms of targeting both and number one, the replacement of mine life and also number two, sort of to maintain on hopefully reserve grade. Is that still kind of like to target, you know, in the background in terms of what you're trying to do with each and every one of these life of mine plan.

戴爾和東尼，當我們過去討論過這個問題時，當你們談到我去年和今年計劃的更新壽命時。就目標而言，始終存在雙軌制：第一個目標是延長礦山壽命，第二個目標是保持希望的儲備品位。你知道，這仍然是一種目標，在你試圖對我的每一個人生計畫要做的事情的背景下。

Yes, see we are trying to do this this time around these three things. One, one and I mentioned it in the script was to increase throughput, continue to increase throughput rates and we are driving towards that 3,500 tonnes per day. We'll have to see as we go through the mine planning work, whether we can sustain that and how we incorporate those higher throughput rates into our new life of mine plan. But from that but that's clearly a target for us.

是的，這次我們正試著圍繞這三件事來做這件事。一、一，我在劇本中提到，是為了提高吞吐量，繼續提高吞吐量，我們正在朝著每天 3,500 噸的目標前進。在進行礦場規劃工作時，我們必須看看我們是否能夠維持這種狀態，以及如何將這些更高的吞吐率納入我們新的礦場計畫中。但從這一點來看，這顯然是我們的目標。

We do plan to extend the mine life and just as we do higher throughput rates than we are taking and able to continue to lower, taking able to take lower grades and we're continuing to lower our unit cost. And that's just operating efficiencies operating well above 3,000 tonnes per day. And just as a reminder, our previous life of mine averaged 2,950 tonnes per day. And we do plan to extend the extend the mine life, including those higher throughput rates and then, as I said, we'll make a decision on the copper circuit, and that's, again a margin enhancement that we're looking to bake into the new life of mine plan as well, but we're just we're just current currently going through all of that work.

我們確實計劃延長礦山壽命，正如我們的生產率高於我們目前的水平並能夠繼續降低一樣，我們能夠繼續降低品位，並繼續降低我們的單位成本。這只是遠高於每天 3,000 噸的營運效率。提醒一下，我們以前的礦井壽命平均為每天 2,950 噸。我們確實計劃延長礦山壽命，包括更高的吞吐率，然後，正如我所說，我們將就銅電路做出決定，這又是我們希望融入的利潤率提高我的新生活也有計劃，但我們只是目前正在完成所有這些工作。

And maybe as a follow-up and broader scale as well in our deal, as you mentioned, great looking balance sheet these days, we're getting some cash sweep from the joint venture and $85 million in cash, no debt, and you're only spending about $80 million in exploration. So what's next is you continue to grow the company? Has everything really organic internal or you're looking externally as well. Can you maybe talk about the growth plans with the new exploration team now in place on a new VP Exploration and you're increasing potentially increasing exploration exploration budgets. So again, internal external, how are you going to continue to grow the company and can we see exploration budget into?

也許作為我們交易的後續和更廣泛的規模，正如您所提到的，這些天資產負債表看起來很棒，我們從合資企業獲得了一些現金掃蕩和8500 萬美元的現金，沒有債務，而您呢？ 我們只花了約 8000 萬美元用於勘探。那接下來你要繼續發展公司嗎？一切都是真正有機的內部，或者你也在尋找外部。您能否談談新勘探團隊的成長計劃，現在新的勘探副總裁就任，您正在增加可能增加的勘探預算。那麼，內部外部，你們將如何繼續發展公司，我們可以看到勘探預算嗎？

Yes. Thanks for highlighting that, Cosmos. And including the cash, the cash balance, we're sitting on over $85 million. As you pointed out. And if you take our share of the joint venture cash, which was $20 million at the end of the at the end of April, the combination of that is over $100 million. Just to be clear that that $85 million and all the distributions made from the joint venture is after our exploration expenditures. And we do have plans straight $18 million this year. And that is a ramp up from what we did last year. And there is only so much we can do from an exploration perspective.

是的。感謝您強調這一點，Cosmos。包括現金在內，我們的現金餘額超過 8500 萬美元。正如你所指出的。如果你考慮我們在合資企業中所佔的現金份額（截至 4 月底為 2000 萬美元），那麼合計起來就超過 1 億美元。需要明確的是，這 8500 萬美元以及合資企業的所有分配都是在我們的勘探支出之後進行的。今年我們確實計劃直接投入 1800 萬美元。這比我們去年所做的有所提高。從探索的角度來看，我們能做的只有這麼多。

And maybe, Tony, you can comment or provide some additional color. Right now we're working towards that $18 million budget, about half of that on resource conversion and extension and house more on that, what I would call pure greenfields exploration, even though some of that is near mine, if we tag into something really interesting trust me, Cosmos, we will put the dollars and goes to work on that.

托尼，也許你可以評論或提供一些額外的顏色。現在我們正在努力實現1800 萬美元的預算，其中大約一半用於資源轉換和擴展，並在這方面投入更多資金，我稱之為純粹的綠地勘探，即使其中一些離我很近，如果我們真的投入一些東西的話有趣的是，相信我，Cosmos，我們將投入資金並致力於此。

But it's important to make sure that we're probably we have a plethora of targets, and we need to make sure that we're properly prioritizing those doing the, you know, the work to make sure we're attacking the best areas first, and there's still lots of work to do. We've done a lot of foundational work over the last 18 to 24 months. We're in a position to start drilling and we are drilling. But yes, just that we do need to be a bit careful about just rent ramping up at such a big property. We're going to be here for many years, Tony, I don't know if you want to expand on that.

但重要的是要確保我們可能有過多的目標，並且我們需要確保我們正確地優先考慮那些正在做的工作，以確保我們首先攻擊最好的區域，而且還有很多工作要做。在過去 18 到 24 個月裡，我們做了很多基礎工作。我們已經準備好開始鑽探，並且正在鑽探。但是，是的，我們確實需要對如此大的房產的租金上漲保持謹慎。我們將在這裡待很多年，托尼，我不知道你是否想擴展這一點。

Yeah, Dale, I think you captured it pretty well down there. I mean, realistically, look, we want to make sure that we're doing good exploration and that way, we've sort of modify that program on the results that we get. We don't want to just go out and drill an active program and not be following it properly. So we are going to we are going to do it sensibly and do it within the sort of capacity that we have like two actually make sure that we're doing the right work. So I think I mean, we are ramping it up. But I think that this is a this is a level where we can make sure that we're doing good, sensible exploration.

是的，戴爾，我認為你在那裡捕捉得很好。我的意思是，實際上，我們希望確保我們正在進行良好的探索，以便我們可以根據所得到的結果修改該程序。我們不想只是出去演練一個活躍的計劃而不正確地遵循它。因此，我們將明智地做到這一點，並在我們擁有的能力範圍內做到這一點，就像兩個人實際上確保我們正在做正確的工作。所以我想我的意思是，我們正在加強努力。但我認為這是一個我們可以確保我們正在進行良好、明智的探索的水平。

And then maybe just to pick up on the other part of your question Cosmos, we will look at opportunistically of other opportunities. We're not going to comment about anything specifically, but we are looking to grow the company. We don't need to do anything beyond our current district, but we will look at things opportunistically as well. We have a great balance sheet, as you pointed out, great.

然後也許只是為了回答你問題 Cosmos 的另一部分，我們將機會主義地考慮其他機會。我們不會具體評論任何事情，但我們正在尋求發展公司。我們不需要做任何超出我們目前地區的事情，但我們也會機會主義地看待事情。正如您所指出的，我們的資產負債表非常好。

(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。

Well, thank you, operator, and thanks to everyone participating in the call. We look forward to updating you as the year progresses. Thanks again.

好的，謝謝接線員，也謝謝所有參與通話的人。隨著時間的推移，我們期待為您提供最新資訊。再次感謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。