Gatos Silver Inc (GATO) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Gatos Silver second quarter 2024 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 Gatos Silver management team will be available. (Operator Instructions)

女士們、先生們，感謝你們的支持，並歡迎參加 Gatos Silver 2024 年第二季業績電話會議。今天的演講嘉賓是 Gatos Silver 執行長 Dale Andres；和財務長安德烈·範·尼克爾克 (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。

And now I would like to turn the call over to Dale Andres. Please go ahead, sir.

現在我想把電話轉給戴爾·安德烈斯。請繼續，先生。

Thank you, operator, and good morning, everyone. Turning to slide 3. I'd like to start with highlighting the excellent financial performance in the quarter. The Los Gatos joint venture had record revenues, record cash flow from operations and record free cash flow. This was primarily due to the strong operating performance and higher metal prices in the quarter.

謝謝接線員，大家早安。轉到投影片 3。我想先強調本季出色的財務業績。洛斯加托斯合資企業的收入、營運現金流和自由現金流均創歷史新高。這主要是由於本季強勁的經營業績和較高的金屬價格。

As previously announced, the Los Gatos joint venture set yet another record for mill throughput during the quarter and we continue to make meaningful progress towards achieving our medium-term target of sustaining a 3,500 tonne per day rate through the mill. Second quarter production results puts us in a strong position to achieve our annual guidance.

正如先前所宣布的，Los Gatos 合資企業在本季度創下了工廠吞吐量的又一紀錄，我們繼續在實現工廠維持每天 3,500 噸產量的中期目標方面取得有意義的進展。第二季的生產業績使我們有能力實現年度指引。

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 our guidance range despite the continued strong peso, although that is starting to weaken and inflationary pressures in the first half of the year. I would also like to highlight the Los Gatos joint ventures free cash flow of almost $41 million in the second quarter of 2024, a 60% increase compared to the first quarter.

由於本季強勁的經營業績，儘管比索持續走強，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，儘管比索開始減弱，而且通膨壓力在今年上半年。我還想強調的是，洛斯加托斯合資企業 2024 年第二季的自由現金流接近 4,100 萬美元，比第一季成長了 60%。

Keeping to our quarterly cadence, the joint venture made a $40 million distribution in July. And as a result, Gatos Silver had a cash balance of nearly $109 million at the end of July. Work on our new life of mine plan is progressing well, and we are on track to announce the results in September. We are aiming to increase throughput and also extend the mine life.

按照我們的季度節奏，該合資企業在 7 月分配了 4000 萬美元。因此，Gatos Silver 截至 7 月底的現金餘額接近 1.09 億美元。新礦山壽命計劃的工作進展順利，我們預計在 9 月宣布結果。我們的目標是提高產量並延長礦山壽命。

During the second quarter, we shifted our main focus from infill drilling in the Southeast deeps to more greenfields exploration drilling on both near mine and other targets in the highly prospective Los Gatos District. I'll talk about that more later on in the presentation.

在第二季度，我們將主要重點從東南部深部的加密鑽探轉向了在高前景洛斯加托斯地區的近礦區和其他目標上進行更多的綠地勘探鑽探。我將在稍後的演示中詳細討論這一點。

But first, turning to slide 4. Mill throughput for the second quarter was 3,240 tonnes per day, the sixth consecutive quarterly record. Mill throughput and metal grades were higher than in the second quarter of 2023, resulting in silver production being 15% higher compared to the second quarter of last year, and finishing this past quarter at 2.3 million ounces and silver equivalent production, which includes zinc, lead and gold and a little bit of copper at 3.9 million ounces for the quarter.

但首先，請先看投影片 4。第二季工廠吞吐量為每天 3,240 噸，連續第六個季度創下紀錄。工廠吞吐量和金屬品位高於 2023 年第二季度，導致白銀產量比去年第二季度高出 15%，上個季度的白銀當量產量達到 230 萬盎司，其中包括鋅、本季鉛、黃金和少量銅為390 萬盎司。

Mill throughput increased 1% quarter-over-quarter with the mill regularly running at an operating rate of between 3,500 and 3,700 tonnes per day and that's on a calendar day basis. As we have stated previously, mining is the bottleneck to achieve further throughput improvements, and we have a number of initiatives underway to address this bottleneck, including rebuilding the underground equipment fleet and various operational improvement projects, which are focused on planning, maintenance and operational execution.

工廠吞吐量季增 1%，工廠正常運作速度為每天 3,500 至 3,700 噸（按日曆日計算）。正如我們之前所說，採礦是進一步提高吞吐量的瓶頸，我們正在採取多項舉措來解決這一瓶頸，包括重建地下設備隊和各種運營改進項目，這些項目的重點是規劃、維護和運營執行。

Site operating unit costs were approximately $101 per tonne this quarter, and that's 3% lower than the comparable quarter in last year. Cash costs for the quarter were 14% higher than in the second quarter last year, and that's primarily due to the higher production rates. Our continuous improvement initiatives continued to offset the strong peso and the inflationary cost pressures.

本季現場營運單位成本約為每噸 101 美元，比去年同期下降 3%。本季的現金成本比去年第二季高出 14%，這主要是由於生產力提高。我們的持續改進舉措繼續抵消了堅挺的比索和通膨成本壓力。

All-in sustaining costs per payable ounce of silver and that's after by-product credits were $6.57, and that's 57% lower than the second quarter last year and below our guidance range for 2024. And again, that was helped by strong by-product production and sales. All-in sustaining costs per payable ounce on a silver equivalent basis, which is co-product basis, were just over $15, and that's 13% lower than in the second quarter last year and well within our guidance range for 2024.

扣除副產品抵免後，每盎司白銀的總維持成本為 6.57 美元，比去年第二季低 57%，也低於我們 2024 年的指引範圍。這再次得益於強勁的副產品生產和銷售。以白銀當量為基礎（即聯產品）的每盎司應付總維持成本略高於 15 美元，比去年第二季低 13%，完全在我們 2024 年的指導範圍之內。

And a bit more on guidance, moving to slide 5. Based on the strong production in the first half of the year, we continue to expect throughput rates at Cerro Los Cato's to average in the top half of our 3,000 to 3,300 tonne per day guidance range for the year, and we continue to expect full year production to be in the upper half of our guidance range for 2024.

關於指導的更多內容，請轉到投影片 5。基於今年上半年的強勁產量，我們繼續預計 Cerro Los Cato 的全年平均吞吐率將位於每天 3,000 至 3,300 噸指導範圍的上半部分，並且我們繼續預計全年的吞吐率2024 年產量將處於我們指導範圍的上半部。

As you can see in the table, silver and silver equivalent production are at approximately 53% on a year-to-date basis compared to the midpoint of guidance and our unit cost metrics are tracking below the midpoint in the first half of the year. We still expect exploration and definition drilling spend to be about $18 million for 2024 and sustaining capital expenditures to be approximately $45 million with the majority of the CapEx spent on underground development with continued focus on opening up the Southeast area and mine equipment rebuilds.

正如您在表中所看到的，與指導中點相比，今年迄今的白銀和白銀當量產量約為 53%，而且我們的單位成本指標低於今年上半年的中點。我們仍預計 2024 年勘探和定義鑽探支出約為 1800 萬美元，維持資本支出約為 4500 萬美元，其中大部分資本支出用於地下開發，並繼續重點關注東南地區的開放和礦山設備重建。

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. Moving to slide 6. Good morning, everyone. The 70% owned Los Gatos joint venture strong operating performance and strong realized metal prices resulted in another quarter of robust cash flow generation. Cash flow provided by operations was approximately $54.5 million, a new quarterly record. The LG JV generated free cash flow of $40.8 million this quarter, 60% higher than the $25.5 million in Q1 2024, and 107% higher at a $19.7 million in Q2 2023, also a new record for the LG JV. The increase from the comparable quarter last year was primarily due to significantly higher revenues partially offset by our operating costs, largely due to higher volumes.

謝謝你，戴爾。轉到投影片 6。大家早安。持有 70% 股份的洛斯加托斯合資企業強勁的經營業績和強勁的金屬價格導致了另一個季度強勁的現金流產生。營運提供的現金流量約為 5,450 萬美元，創下季度新紀錄。LG 合資公司本季產生了4,080 萬美元的自由現金流，比2024 年第一季的2,550 萬美元成長了60%，比2023 年第二季的1,970 萬美元成長了107%，這也是LG 合資公司的新紀錄。與去年同期相比的成長主要是由於收入顯著增加，部分被我們的營運成本所抵消，這主要是由於銷售增加。

Cash flow used in investing activities was $13.7 million in Q2 2024, $900,000 lower than in Q2 2023. Of that amount, $11.4 million was spent on sustaining capital expenditures and $1.9 million on resource development drilling. The LG JV made a capital distribution of $25 million in April 2024. And as a result of the continued strong free cash flow generation in the second quarter, the joint venture made a $40 million capital distribution in July, subsequent to the end of the quarter.

2024 年第二季投資活動使用的現金流量為 1,370 萬美元，比 2023 年第二季減少 90 萬美元。其中，1,140 萬美元用於維持資本支出，190 萬美元用於資源開發鑽探。LG 合資公司於 2024 年 4 月進行了 2,500 萬美元的資本分配。由於第二季自由現金流持續強勁，該合資企業在季度末後的 7 月進行了 4,000 萬美元的資本分配。

Now turning to slide 7 to look at the financial results of the Los Gatos joint venture for the quarter. Revenues increased 62% to $94.2 million in the second quarter of 2024. Higher volumes of metal sold and higher realized metal prices contributed to the significant increase in revenue for the quarter. The provisional revenue adjustment was a $700,000 positive adjustment compared to a $3.1 million negative adjustment in Q2 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表現。2024 年第二季營收成長 62%，達到 9,420 萬美元。金屬銷售的增加和金屬價格的上漲推動了本季營收的大幅成長。臨時收入調整為 70 萬美元的正調整，而 2023 年第二季為 310 萬美元的負調整。

Cost of sales increased by 24%, primarily due to a 29% increase in the tonnage of concentrates sold and the associated higher mining and processing costs as a result of an 11% increase in mill throughput. Cost of sales were further impacted by the stronger Mexican base in Q2 2024 compared to Q2 2023. Depreciation, depletion and amortization expense decreased by approximately 5% primarily due to the increase in mineral reserves and the extension of the life of mine, partially offset by capital additions.

銷售成本增加 24%，主要是因為銷售精礦噸位增加 29%，以及工廠產量增加 11% 導致採礦和加工成本增加。與 2023 年第二季相比，2024 年第二季墨西哥市場的強勁進一步影響了銷售成本。折舊、消耗和攤銷費用減少約5%，主要是由於礦產儲量的增加和礦山壽命的延長，部分被資本增加所抵消。

Income tax expense of $12.5 million was recorded compared to $4.7 million in Q2 2023. Income tax expense increased primarily due to higher taxable income at the LG JV. Finally, LG JV recorded net income of approximately $20.5 million, a significant increase from the $700,000 net income recorded in Q2 2023, mainly as a result of the higher revenues.

所得稅費用為 1,250 萬美元，而 2023 年第二季為 470 萬美元。所得稅費用增加主要是因為 LG 合資企業的應稅收入增加。最後，LG 合資公司的淨利潤約為 2,050 萬美元，較 2023 年第二季的 70 萬美元淨利潤大幅增長，這主要是由於收入增加。

Turning to slide 8 to review the financial results with regard to. Net income for the second quarter of 2024 was $9.2 million compared to a net loss of $3.6 million in Q2 last year. Basic and diluted earnings were $0.13 per share this quarter compared to a net loss per share of $0.05 in Q2 2023. Equity income in affiliates increased to $14.5 million, primarily due to the increase in net income of the LG JV. The company incurred general and administrative expenses of $7.9 million compared to $6.2 million in Q2 2023.

轉向投影片 8 來回顧一下財務表現。2024 年第二季淨利為 920 萬美元，而去年第二季淨虧損為 360 萬美元。本季基本和稀釋收益為每股 0.13 美元，而 2023 年第二季每股淨虧損為 0.05 美元。附屬公司的股本收入增加至 1,450 萬美元，主要是由於 LG 合資公司的淨利潤增加。該公司的一般及管理費用為 790 萬美元，而 2023 年第二季為 620 萬美元。

The $1.7 million increase is primarily due to a $1.2 million increase in non-cash stock-based compensation expense as a result of equity grants in September 2023 after an extended blackout period and also a $600,000 increase in legal and consulting fees. Most of these costs are non-recurring, and we do not expect it to continue beyond 2024.

增加 170 萬美元的主要原因是，在延長禁售期後，由於 2023 年 9 月的股權授予，非現金股票補償費用增加了 120 萬美元，而且法律和諮詢費用增加了 60 萬美元。其中大部分成本是非經常性成本，我們預計這種情況不會持續到 2024 年之後。

G&A, excluding noncash stock-based compensation expense were $6.3 million compared to 5.7% in Q2 2023. And lastly, other income includes $1.5 million of the quarterly management fees received from the LG JV for the quarter.

不包括非現金股票補償費用的一般管理費用為 630 萬美元，而 2023 年第二季為 5.7%。最後，其他收入包括本季從 LG 合資企業收到的 150 萬美元的季度管理費。

Turning to slide 9. As was mentioned earlier, the joint venture had a capital distribution of $25 million to its partners, Casasola and Teva during the second quarter, of which we received $17.5 million. As a result, ended the second quarter with a cash balance of $82.5 million.

轉到投影片 9。正如前面提到的，該合資企業在第二季度向其合作夥伴卡薩索拉和梯瓦公司分配了 2500 萬美元的資本，其中我們收到了 1750 萬美元。結果，第二季末現金餘額為 8,250 萬美元。

In July, the LG JV made another capital distribution of $40 million, of which the company received $28 million, bringing the company's cash balance to $108.9 million at July 31, 2024. the LG JV ended the second quarter with a cash balance of $45.5 million and had a cash balance of $24.4 million at July 31, 2024. Both GSI and the joint venture continue to remain debt-free.

7月份，LG合資公司再次進行了4000萬美元的資本分配，其中公司收到了2800萬美元，使該公司截至2024年7月31日的現金餘額達到1.089億美元。餘額為4550萬美元截至 2024 年 7 月 31 日，現金餘額為 2,440 萬美元。廣船國際和合資企業均繼續保持無債務狀態。

I will now hand it back to Dale.

我現在將把它還給戴爾。

Thanks, Andre. On slide 10, highlights how our business improvement initiatives are helping to drive cost performance together with the increased mill throughput. Site operating costs per tonne have decreased by 9% over the past three years, and that's despite inflationary pressures and the substantial strengthening of the Mexican peso over that time period.

謝謝，安德烈。在投影片 10 中，重點介紹了我們的業務改進計劃如何幫助提高成本效益以及增加工廠吞吐量。過去三年中，儘管存在通貨膨脹壓力且墨西哥比索大幅走強，但每噸現場營運成本仍下降了 9%。

We are continuing to focus on the efficiency of our underground workforce and equipment, including continuing our rebuild program on our equipment and advancing other productivity initiatives to sustainably mine at our current 3,200 to 3,300 tonne per day rate with targets to further extend up to 3,500 tonnes per day in the medium term.

我們將繼續關注地下勞動力和設備的效率，包括繼續我們的設備重建計劃，並推進其他生產力舉措，以實現目前每天 3,200 至 3,300 噸的可持續開採，目標是進一步擴大到 3,500 噸中期每天。

Turning to slide 11. We remain on track to provide our updated life of mine plan and mineral reserves in the third quarter of 2024. And as I said previously, we're targeting September, we are working to incorporate a higher throughput rate in the new mine plan as the current plan averages 250 tonnes per day. So driving towards our 3,500 target would be a significant increase. However, we still expect an extension to the life of mine, notwithstanding this higher rate.

轉到投影片 11。我們仍有望在 2024 年第三季提供最新的礦場計畫壽命和礦產儲量。正如我之前所說，我們的目標是 9 月，我們正在努力將更高的吞吐量納入新的礦山計劃，因為當前計劃平均每天 250 噸。因此，朝著 3,500 人的目標邁進將是一個顯著的成長。然而，儘管比率較高，我們仍然期望延長我的使用壽命。

The new reserve will be based on an additional 66 kilometers of drilling that's been completed over the previous 12-month period, and that was up to the end of the first quarter of this year. And as a reminder, the South East deeps conversion drilling, which was completed during that 12-month period up to March 2024 was done on 50-meter spacing. We still have two drills dedicated to further expansion of this zone along strike with additional strong results for this area reported in our most recent exploration release in late July.

新儲量將基於過去 12 個月期間（截至今年第一季末）完成的額外 66 公里鑽探。需要提醒的是，截至 2024 年 3 月的 12 個月內完成的東南深部轉換鑽探是以 50 公尺間距完成的。我們仍然有兩次鑽探專門致力於沿走向進一步擴展該區域，並在我們 7 月下旬的最新勘探發布中報告了該區域的額外強勁成果。

On the plant recovery side of things, we are completing detailed engineering for a copper separation circuit and anticipate making a decision in the second half of this year on that. We are also evaluating technology and various options for increasing the recovery of silver, gold and zinc from fines that are currently being lost to tailings.

在工廠回收方面，我們正在完成銅分離迴路的詳細工程，並預計在今年下半年做出決定。我們也正在評估技術和各種方案，以提高從目前因尾礦流失的細粉中回收銀、金和鋅的能力。

Turning to slide 12. We are highlighting a balanced approach to our organic growth strategy. The images on this slide show a few of the key targets that are located within kilometers of the existing mine workings. The second quarter marked a clear pivot in our execution towards unlocking value in the Los Gatos district. With the completion of the Southeast Deeps infill program, for the 2024 reserve and resource update, efforts were immediately redirected towards brownfield extension and growth-related drilling.

轉到投影片 12。我們強調對我們的有機成長策略採取平衡的方法。這張投影片上的影像顯示了位於現有礦場數公里範圍內的一些關鍵目標。第二季標誌著我們的執行工作轉向釋放洛斯加托斯地區的價值。隨著東南深部加密計畫的完成，2024 年儲量和資源更新的工作立即轉向棕地擴展和與成長相關的鑽探。

At the same time, our significant increase in greenfields work in the district provides the required balance between life extension and district exploration ensuring we can continue to advance our knowledge of key targets across all levels of the exploration pipeline, and that's from early-stage mapping across our 103,000 hectare property through to resource and hopefully, reserve additions. While we advance our drilling programs, we remain committed and excited about the potential of our field mapping programs which is continuing to help unlock value in this exciting district and firm up additional targets for us to drill.

同時，我們在該地區的綠地工作大幅增加，在延長壽命和地區勘探之間實現了所需的平衡，確保我們能夠繼續提高對勘探管道各級關鍵目標的了解，而這來自早期繪圖我們佔地103,000 公頃的土地，一直到資源和儲量的增加。在我們推進鑽探計劃的同時，我們仍然致力於現場測繪計劃的潛力，並對此感到興奮，該計劃將繼續幫助釋放這個令人興奮的地區的價值，並為我們確定更多的鑽探目標。

On slide 13, it shows tangible results of how we are executing on this strategy in the district. Starting in the Northwest, we have our San Luis target located 4.5 kilometers from infrastructure. We mobilized the drill rig to this target in the mid part of the last quarter, and we've already completed two holes.

第 13 張投影片顯示了我們如何在該地區執行這項策略的實際成果。從西北地區開始，我們的聖路易斯目標距離基礎設施 4.5 公里。我們在上季中期將鑽孔機調動到這個目標，並且已經完成了兩個孔。

Both holes in San Luis have returned wide intervals of faulting, veining and solicified branches with elevated precious and base metal results. We are excited about the potential results that lay ahead of us, and we continue to drill test this target. Moving closer to the mine, we have the Deeps which we're targeting the potential faulted portion of the central and northwest zones at depth. And so this is similar to the Southeast deeps.

聖路易斯的兩個礦洞都發現了大範圍的斷層、脈紋和索化分支，貴金屬和賤金屬結果均有所改善。我們對擺在我們面前的潛在結果感到興奮，我們將繼續演練測試這一目標。靠近礦井，我們有深部，我們的目標是中部和西北區域深處的潛在斷層部分。所以這與東南深處相似。

We are mobilizing a new drill rig and we actually have mobilized a new drill rig to site, and this was done last quarter that began drilling a 1,200-meter deep geological free more coal within the target footprint in the central deeps. This target is a key priority in our strategy as any success will immediately open up a large and currently untested search area directly below our current mine infrastructure.

我們正在調動一台新的鑽機，實際上我們已經調動了一台新的鑽機到現場，這是上個季度完成的，開始在中央深處的目標足跡內鑽探 1,200 米深的無地質礦床。這個目標是我們策略中的關鍵優先事項，因為任何成功都將立即在我們目前的礦場基礎設施​​正下方開闢一個目前未經測試的大型搜尋區域。

Further to the Southeast, we also have our portal target and that's located approximately two kilometers from the mine. Our drill results are confirming a complex structural corridor returning geochemically anomalous results. Our initial drill program continues to indicate all the rate ingredients are present for a possible discovery. We will continue to advance our balanced strategy to unlock value in the Los Gatos district through the remainder of 2024, and plan to build off the exciting start realized in the second quarter.

再往東南方向走，我們還有傳送門目標，距離礦坑約兩公里。我們的鑽探結果證實了一個複雜的結構走廊，並返回了地球化學異常結果。我們最初的鑽探計劃繼續表明所有可能的發現都存在。我們將繼續推動平衡策略，在 2024 年剩餘時間內釋放洛斯加托斯地區的價值，並計劃在第二季度實現令人興奮的開局。

So in summary, on slide 14, we continue to safely drive mill throughput increases together with our productivity improvements and cost optimization, which continues to be a core part of our business and operating strategy. We remain focused on developing our new life of mine plan by September that incorporates the Southeast deeps conversion drilling and together with other value-enhancing initiatives, including higher throughput rates and the copper circuit, which I mentioned earlier, and we continue to be very excited as we continue our exploration drilling on our near mine targets, and that's on Porto Guido, both the Northwest and Central deeps targets, and/or district drilling in the large and prospective district that we have, and that includes the San Luis prospects.

總而言之，在投影片 14 上，我們繼續安全地推動工廠吞吐量的增加，同時提高生產力和優化成本，這仍然是我們業務和營運策略的核心部分。我們仍然專注於在 9 月之前製定新的礦山計劃，其中包括東南深部轉換鑽探以及其他增值計劃，包括更高的吞吐量和我之前提到的銅循環，我們仍然感到非常興奮隨著我們繼續對近礦目標進行勘探鑽探，即在吉多港、西北和中部深部目標，和/或在我們擁有的大型遠景地區進行區域鑽探，其中包括聖路易斯遠景。

And importantly, we continue to generate strong operating margins and cash flow with regular distributions expected from the joint venture and a growing cash balance at the corporate level that now exceeds $100 million, which is available to support future growth of the company.

重要的是，我們將繼續創造強勁的營業利潤和現金流，預計合資企業將進行定期分配，公司層面的現金餘額不斷增長，目前已超過 1 億美元，可用於支持公司未來的成長。

I'll 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)

（操作員說明）

Kevin O'Halloran, BMO Capital Markets.

Kevin O'Halloran，BMO 資本市場。

Hey, Dale and team. Thanks for taking my question. Maybe starting with the bigger picture question, can you give us any thoughts around the Mexican election in June? And any expectations or anything you're hearing or seeing from the incoming administration with respect to mining that might impact you?

嘿，戴爾和團隊。感謝您提出我的問題。也許從更大的問題開始，您能給我們談談關於六月墨西哥選舉的任何想法嗎？您從即將上任的政府那裡聽到或看到的任何有關採礦的期望或任何可能影響您的事情？

Yeah. Thanks, Kevin. Yeah, we're optimistic that things will be more pro business under the new administration. We're seeing the bulk of the ministerial appointments to date being pro business. And I would just point out the Minister of Economy in particular, Marcello. And I know the new incoming minister is also already met with the mining industry as a priority.

是的。謝謝，凱文。是的，我們樂觀地認為，在新政府的領導下，事情將變得更有利於商業。我們看到迄今為止大部分部長級任命都是親商界的。我只想特別指出經濟部長馬塞洛。我知道新上任的部長也已經將採礦業作為優先事項進行了會見。

So we're hopeful that things will improve for the industry. Just as a reminder, we don't need any immediate permits to continue operating, but I think it is healthy and for the future growth of our district. Obviously, we'd like to see that area improved for the industry, and we're hopeful that, that will be the case with the new administration coming in, in October.

因此，我們希望該行業的情況能夠有所改善。提醒一下，我們不需要立即獲得任何許可證即可繼續運營，但我認為這是健康的，有利於我們地區的未來發展。顯然，我們希望看到該行業在該領域得到改善，並且我們希望十月份新政府上任後情況會如此。

Great. Thanks for that. My second question, you addressed this a little bit in your comments already, but can you give us a sense of your exploration priorities and maybe the pace of drilling that we can expect on near mine targets versus regional exploration now that the indrilling is wrapped up?

偉大的。謝謝你。我的第二個問題，您已經在評論中提到了這一點，但是您能否讓我們了解一下您的勘探優先事項，以及我們可以在近礦目標與區域勘探中預期的鑽探速度，因為鑽探已經結束？

Yeah. So I think we're currently, if I'm not mistaken, we're at five surface rigs. I think we're going to be going up to six. Two of those will remain on the Southeast deep, continuing to extend mineralization, and hopefully reserves and resources and ultimately reserves. As you would have seen from our July release, we have hit some additional intersections in the second quarter since the cutoff date for our new life of mine plan. So we're going to continue to extend and expand the mineralization in that area. So that continues to be a priority.

是的。所以我認為，如果我沒記錯的話，我們目前有五個地面鑽孔機。我想我們會增加到六個。其中兩個將留在東南部深處，繼續擴大礦化範圍，希望擴大儲量和資源，最終擴大儲量。正如您從我們 7 月發布的報告中看到的那樣，自從新礦山計劃的截止日期以來，我們在第二季度遇到了一些額外的交叉點。因此，我們將繼續擴大該地區的礦化範圍。因此，這仍然是一個優先事項。

But I would say the other four rigs, we plan to have at least two of those on greenfield. And right now, we have 1 on the central deeps. We may look at putting the sixth rig either on that or more broadly out in the district. And that's really speaking to the third quarter. Obviously, it depends on success. But as we ramp up to the fourth quarter, we're also looking at going further afield into the northwest of the property around the Lins area.

但我想說的是，我們計劃在其他四個鑽孔機中至少有兩個處於新建狀態。現在，我們在中央深處有 1 個。我們可能會考慮將第六台鑽機放在該區域或更廣泛的區域內。這確實是針對第三季的情況。顯然，這取決於成功。但隨著我們進入第四季度，我們也在考慮更遠的地區，進入林斯地區周圍的房地產西北部。

And we definitely want to get the drills turning up in that area, which is just as a reminder, it's about 15 or so kilometers to the northwest of the mine. And we haven't done drilling in that area. I don't think since -- for more than 10 years since the early days. But there's some really exciting mapping and targeting that we're doing out there. Our geologists come back from the field every day more and more excited about that area. And yeah, we're looking forward to getting the drills up there.

我們肯定希望在該地區進行鑽探，這只是提醒一下，該地區位於礦井西北方向約 15 公里左右。我們還沒有在那個地區進行過鑽探。我不認為自早期以來已經有十多年了。但我們正在做一些非常令人興奮的映射和定位。我們的地質學家每天從現場回來，對這個地區越來越興奮。是的，我們期待在那裡進行演習。

Great. That's helpful. Final one for me. Just a quick one on the rebuild program. Can you remind us about the timing on that? Is it still on track to wrap up in H2 here? And then should we expect to see that helping to bump up mining rates in the second half?

偉大的。這很有幫助。對我來說最後一張。只是簡單介紹一下重建計劃。能提醒我們一下具體時間嗎？H2 是否仍有望在此結束？那麼我們是否應該期望看到這有助於提高下半年的採礦率？

Yeah. We started our rebuild -- thanks, again, for the follow-up, Kevin. We started our rebuild program on our mining equipment last year. We've been continuing that program this year, and it continues into the first part of 2025. Obviously, our priority equipment was up first and foremost, but that would include our trucks, our loaders, our bolters, our jumbos. We really are refreshing the entire underground fleet. And we've been able to accomplish these increases that we've seen. We've used some rental equipment to help offset while we've had the equipment up for rebuild.

是的。我們開始重建——再次感謝凱文的後續報導。去年，我們開始了採礦設備的重建計畫。今年我們一直在繼續該計劃，並將持續到 2025 年上半年。顯然，我們的優先設備是最重要的，但這包括我們的卡車、裝載機、錨桿機和台車。我們確實正在刷新整個地下艦隊。我們已經能夠實現我們所看到的這些成長。我們使用了一些租賃設備來幫助抵消，同時我們也準備了設備進行重建。

But the program probably has less than a year to go or probably about 70% to 80% of the way through. We should be finished the bulk of that by the first quarter of next year and the priority equipment is obviously first. So we've done the vast majority of that. That helps us. That's not the only answer to increasing up to 3,500 tonnes per day, which we said is our medium-term target.

但該計劃可能還有不到一年的時間，或者說已經完成了 70% 到 80% 左右。我們應該在明年第一季之前完成大部分工作，而優先設備顯然是第一位的。所以我們已經完成了其中的絕大多數。這對我們有幫助。這並不是將產量增加到每天 3,500 噸的唯一答案，我們稱這是我們的中期目標。

We're making good progress towards that, but it's using that equipment and it's everything like shift change times blasting efficiencies all continuing to optimize our backfill program, our cycling of long-haul stopes. All of these types of things help us drive to that 3,500 tonne per day mark, but definitely having a refresh equipment fleet is going to help as well.

我們在這方面取得了良好進展，但它正在使用該設備，以及諸如換班時間、爆破效率之類的一切，所有這些都在繼續優化我們的回填計劃和長途採場循環。所有這些類型的事情都有助於我們達到每天 3,500 噸的目標，但擁有更新的設備車隊肯定也會有所幫助。

Great. Thanks for that, Dale. That's it for me. Congrats on the strong quarter, and I'll jump back in the queue. Thanks.

偉大的。謝謝你，戴爾。對我來說就是這樣。恭喜這個季度的強勁表現，我會重新加入隊列。謝謝。

Thanks, Kevin.

謝謝，凱文。

(Operator Instructions)

（操作員說明）

There are no further questions at this time. Mr. Andres. I turn the call back over to you.

目前沒有其他問題。安德烈斯先生。我把電話轉回給你。

Okay. Thanks for listening, everyone. We look forward to updating you on our progress in the third quarter. Thank you.

好的。謝謝大家的聆聽。我們期待向您通報第三季的最新進展。謝謝。

This concludes today's 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。