Hecla Mining Co (HL) 2024 Q2 法說會逐字稿

Hello, everyone, and welcome to the second quarter 2024 Hecla Mining Company earnings conference call. Please note that this call is being recorded. (Operator Instructions) Thank you.

大家好，歡迎參加赫克拉礦業公司 2024 年第二季財報電話會議。請注意，此通話正在錄音。（操作員說明）謝謝。

I'd now like to hand over to our first speaker for today, Anvita Patil. Please go ahead.

現在我想請今天的第一位發言人 Anvita Patil 來演講。請繼續。

Good morning Ellie, and thank you all for joining us for Hecla's second quarter 2024 results conference call. I'm Anvita Patil, Vice President of Investor Relations and Treasurer. Our earnings release that was issued yesterday, along with today's presentation are available on our website.

早安，艾莉，感謝大家參加 Hecla 2024 年第二季業績電話會議。我是安維塔·帕蒂爾 (Anvita Patil)，投資者關係副總裁兼財務主管。我們昨天發布的收益報告以及今天的簡報可在我們的網站上查看。

On the call is Cassie Boggs, Interim President and Chief Executive Officer; Russell Lawlar, Senior Vice President and Chief Financial Officer; Carlos Aguiar, Vice President of Operations; and Kurt Allen, Vice President of Exploration. At the conclusion of our prepared remarks, we will all be available to answer your questions.

臨時總裁兼執行長卡西·博格斯 (Cassie Boggs) 參加了電話會議； Russell Lawlar，資深副總裁兼財務長；卡洛斯·阿吉亞爾，營運副總裁；和勘探副總裁庫爾特艾倫。在我們準備好的發言結束後，我們將隨時回答您的問題。

Any forward-looking statements made today by the management team come under the Private Securities Litigation Reform Act and involve risks as shown on slide 2 in our earnings release and in our 10-K and 10-Q filings with the SEC. These and other risks could cause results to differ from those projected in the forward-looking statements.

管理團隊今天發表的任何前瞻性聲明均受《私人證券訴訟改革法案》管轄，並涉及我們的收益發布幻燈片 2 以及我們向 SEC 提交的 10-K 和 10-Q 文件中所示的風險。這些風險和其他風險可能導致結果與前瞻性陳述中預測的結果不同。

Non-GAAP measures cited in this call and related slides are reconciled in the slides or the news release. I want to remind you that if you would like to have a call with management, you can do so by using the link under the section virtual investor event in our earnings release that was issued yesterday.

本次電話會議和相關幻燈片中引用的非公認會計原則措施在幻燈片或新聞稿中進行了調整。我想提醒您，如果您想與管理層通話，可以使用我們昨天發布的收益報告中虛擬投資者活動部分下的連結來進行。

I will now pass the call to Cassie.

我現在將把電話轉給卡西。

Thanks, Anvita. Good morning, everyone. The quote goes there is nothing permanent except change and Hecla has seen its share of change over the years. But not only has Hecla survived these changes, is also grown and thrived during these changes. This period of change and transition is not new to Hecla and we've embraced it and the opportunities it presents.

謝謝，安維塔。大家早安。俗話說，除了變化，沒有什麼是永恆的，而 Hecla 多年來也見證了自己的變化。但赫克拉不僅在這些變化中倖存下來，還在這些變化中成長和繁榮。對 Hecla 來說，這段變革和過渡時期並不新鮮，我們已經接受了它及其帶來的機會。

Let me begin on slide 3. Hecla's origins began all the way back in October 1891 in the Silver Valley of Idaho, about 50 miles east from where I'm sitting this morning. Since that time, the company has not just withstood but thrived across macroeconomic events such as the Great Depression, the Great Financial Crisis of 2008, along with two World Wars, the pandemic, and multiple other events over this time.

讓我從幻燈片 3 開始。Hecla 的起源可以追溯到 1891 年 10 月，位於愛達荷州銀谷，距離我今天早上坐的地方以東約 50 英里。從那時起，該公司不僅經受住了宏觀經濟事件的考驗，而且還蓬勃發展，例如大蕭條、2008 年金融危機、兩次世界大戰、新冠病毒大流行以及同期發生的多次其他事件。

Hecla also visited other more specific events, such as the 1910 fires, which burned across much of Northern Idaho and Western Montana and the low metal prices of the early 2000s. Our most valuable asset that has allowed Hecla to grow and thrive is our people.

赫克拉還考察了其他更具體的事件，例如 1910 年的大火，這場大火燒毀了愛達荷州北部和蒙大拿州西部的大部分地區，以及 2000 年代初期的低金屬價格。讓 Hecla 不斷成長和繁榮的最寶貴資產是我們的員工。

Hecla would not be the company it is today if it were not for the hard work, determination and commitment to our core values of safety and environmental stewardship of those who go to work at our operations and elsewhere in each and every day.

如果沒有那些每天在我們的營運場所和其他地方工作的員工的辛勤工作、決心和對安全和環境管理核心價值的承諾，Hecla 就不會成為今天的公司。

Second is the quality of our assets. The solid foundation of long reserve lives, low cost silver operations with great geologic potential and the best mining jurisdictions. While each of our mines has its own specific qualities, there are some characteristics that transcend the portfolio.

其次是我們的資產品質。長儲量壽命、低成本白銀作業、巨大地質潛力和最佳採礦管轄區的堅實基礎。雖然我們的每座礦場都有其獨特的品質，但也有一些超越產品組合的特徵。

The first to highlight is the jurisdiction. All of our operating mines are in the US or Canada. Second, each of our operating lines has reserve mine life of more than a decade. And in the case of Lucky Friday, nearly two decades. And especially on the silver side of our business, we have a competitive cost advantage with Greens Creek and Lucky Friday and our low cost structures, which drive margins and meaningful free cash flow generation.

首先要強調的是管轄權。我們所有營運的礦山都位於美國或加拿大。其次，我們每條作業線的儲備礦山壽命都在十年以上。就「幸運星期五」而言，已經將近二十年了。尤其是在我們的白銀業務方面，我們與 Greens Creek 和 Lucky Friday 相比具有競爭成本優勢，而且我們的低成本結構可以提高利潤率並產生有意義的自由現金流。

I'll pass the call to Russell and Carlos shortly, and each will go through the results of the quarter in more detail. But I'd like to take a moment to note that Hecla had a great second quarter, and with strong operational performance delivered record revenues and the highest -- second highest silver production in our 133 year history.

我很快就會把電話轉給拉塞爾和卡洛斯，他們將更詳細地了解本季的結果。但我想花點時間指出，Hecla 第二季度表現出色，憑藉強勁的營運業績，實現了創紀錄的收入和我們 133 年歷史上最高（第二高）的白銀產量。

There are three key messages we'd like to drive home. First, we're on a path of free cash flow generation, especially in this metal price environment with our Lucky Friday and Greens Creek mines generating strong free cash flow.

我們想傳達三個關鍵訊息。首先，我們正走在自由現金流生成的道路上，特別是在這種金屬價格環境下，我們的幸運星期五和 Greens Creek 礦山產生了強勁的自由現金流。

Second, we're deploying our free cash flow by investing in our operations, especially Keno Hill, where we have seen remarkable success. But more work is needed to daylight the long term value in this highly prospective geologic district. And third, we're committed to deleveraging our balance sheet as we started to pay down our credit facility.

其次，我們透過投資我們的業務來部署我們的自由現金流，特別是基諾山，我們在那裡取得了顯著的成功。但還需要做更多的工作來揭示這個極具前景的地質區的長期價值。第三，當我們開始償還信貸額度時，我們致力於槓桿化我們的資產負債表。

I want to take the moment to emphasize the long term value we see at Keno Hill, delivery of which is reliant on improving safety, environmental processes, mining practices and investments in infrastructure. Our investment in Keno Hill is not different from our investments at Lucky Friday or Greens Creek in their early years.

我想藉此機會強調我們在基諾山看到的長期價值，其實現取決於改善安全、環境流程、採礦實踐和基礎設施投資。我們對基諾山的投資與早年對Lucky Friday或Greens Creek的投資沒有什麼不同。

Both these operations today are cash flow -- free cash flow engines of Hecla. Keno Hill with its exploration potential has parallels to both Lucky Friday and Greens Creek. But back in the 2000s, silver was before $5 -- silver was below $5 per ounce, but Lucky Friday's resource potential was significant.

如今，這兩項業務都是現金流——Hecla 的自由現金流引擎。基諾山 (Keno Hill) 的勘探潛力與幸運星期五 (Lucky Friday) 和格林斯溪 (Greens Creek) 相似。但早在 2000 年代，白銀價格就在 5 美元之前——白銀價格低於每盎司 5 美元，但「幸運星期五」的資源潛力巨大。

We embarked on a drilling program in 2005 and increased our reserves by more than 300% over a period of seven years. The geologic potential of the mine drove investments in the number four shaft and other infrastructure like the service hoist from the course order bunker (technical difficulty) with our (technical difficulty) of the UCB mining (technical difficulty) delivering the best decade as a pillar of our production growth, our free cash flow generation and the bench strength and experience of the team, our culture and our people.

我們於 2005 年開始實施鑽探計劃，七年間我們的儲量增加了 300% 以上。該礦的地質潛力推動了對四號豎井和其他基礎設施的投資，例如來自課程訂單地堡的服務提昇機（技術難度），而我們的UCB 採礦（技術難度）（技術難度）提供了最好的十年作為支柱我們的產量成長、自由現金流的產生以及團隊的實力和經驗、我們的文化和我們的員工。

I want to also speak briefly about the recent developments in Yukon. We've offered our assistance to the First Nation of Na-Cho Nyäk Dun and the Yukon government to help with the cleanup activities arising from the heap leach failure at Victoria Gold Eagle mine. We're committed to Yukon and continue to be available where possible to assist during this time of crisis.

我還想簡單談談育空地區最近的發展。我們已向 Na-Cho Nyåk Dun 原住民和育空地區政府提供援助，協助進行維多利亞金鷹礦堆浸失敗引起的清理活動。我們致力於育空地區，並在危機時期繼續盡可能提供協助。

And finally, I just want to bring people up to speed on the status of our executive search for a new CEO. The search is going very well, and we've had a very robust response. We have been identified a number of very qualified candidates who are very interested in the position, and we're confident that out of this wide ranging tool, we will find the right person to lead Hecla in the future.

最後，我想讓人們了解我們尋找新執行長的高階主管的最新情況。搜尋進展順利，我們得到了非常有力的回應。我們已經確定了一些非常合格的候選人，他們對該職位非常感興趣，我們相信，透過這個廣泛的工具，我們將找到未來領導 Hecla 的合適人選。

I'll now turn the call to Russell.

我現在將電話轉給拉塞爾。

Thank you, Cassie. I'll start on slide 5. A quarter ago, we laid out a scorecard with our capital allocation priorities for 2024. I'm happy to report that we continue to make significant progress against these priorities of paying down our revolver and investing in our operations.

謝謝你，卡西。我將從幻燈片 5 開始。一個季度前，我們制定了一份記分卡，其中列出了 2024 年的資本配置優先事項。我很高興地向大家報告，我們在償還左輪手槍和投資營運等優先事項方面繼續取得重大進展。

While all four of our operations generated free cash flow, the lion's share came from Greens Creek and Lucky Friday. During the first half of this year, Greens Creek and Lucky Friday generated $100 million of free cash flow with $67 million in the second quarter, including $18 million of insurance proceeds.

雖然我們的所有四個業務都產生了自由現金流，但最大的份額來自 Greens Creek 和 Lucky Friday。今年上半年，Greens Creek 和 Lucky Friday 產生了 1 億美元的自由現金流，第二季產生了 6,700 萬美元的自由現金流，其中包括 1,800 萬美元的保險收益。

Continued investment in Keno Hill is a high priority, both in the mine as an asset, but also in our workforce in mining and environmental and infrastructure procedures to ensure the safe and stable operations at Keno Hill over decades to come.

對基諾山的持續投資是重中之重，不僅是作為一項資產，而且是我們在採礦、環境和基礎設施程序方面的勞動力，以確保基諾山在未來幾十年的安全和穩定運作。

Our investments in process and safety and environmental procedures have started to produce tangible results. However, this is a journey, not a destination and we plan to continue our investment here. Keno Hill had a record quarter, producing over 400 ton per day and over 900,000 ounces, which is incredible progress.

我們在流程、安全和環境程序方面的投資已開始產生實際的成果。然而，這是一段旅程，而不是目的地，我們計劃繼續在這裡投資。Keno Hill 季度產量創歷史新高，每天產量超過 400 噸，產量超過 90 萬盎司，這是一個令人難以置信的進步。

Although we're encouraged by this progress, we've not yet declared commercial production as we want to ensure these levels are sustainable. Carlos will discuss some of these details later in the presentation. Another priority is deleveraging the balance sheet and reducing our revolver borrowings.

儘管我們對這一進展感到鼓舞，但我們尚未宣布商業生產，因為我們希望確保這些水平是可持續的。卡洛斯將在稍後的演示中討論其中一些細節。另一個優先事項是去槓桿化資產負債表並減少我們的循環借款。

In the second quarter, we reduced our net debt by $25 million and ended the quarter with a revolver draw of $62 million, with cash of nearly $25 million on hand. Our net leverage ratio improved with record adjusted EBITDA, which increased 25% over the first quarter.

第二季度，我們的淨債務減少了 2,500 萬美元，在季度結束時循環提取了 6,200 萬美元，手頭現金接近 2,500 萬美元。我們的淨槓桿率有所改善，調整後 EBITDA 創歷史新高，較第一季成長 25%。

With expected production and term prices, along with the remaining $14.8 million of insurance proceeds from our Lucky Friday claim, we anticipate we'll be able to reduce our net leverage ratio to below 2 times by the end of the year and pay our revolver down over the next 12 months.

根據預期的產量和期限價格，以及幸運星期五索賠剩餘的 1,480 萬美元保險收益，我們預計到年底我們將能夠將淨槓桿率降至 2 倍以下，並支付我們的左輪手槍首付在接下來的12 個月內。

Our realized prices silver also triggered a higher dividend payment this quarter, adding a penny per share to the minimum dividend component. This larger dividend payment highlights our unique silver linked dividend policy, which provides additional exposure and leverage to silver prices.

我們的白銀實際價格也引發了本季更高的股息支付，在最低股息成分的基礎上增加了每股一美分。這一較大的股息支付凸顯了我們獨特的白銀掛鉤股息政策，該政策為白銀價格提供了額外的曝險和槓桿。

Moving to slide 6, strong operational performance, coupled with a favorable metal price, translated into free cash flow for the quarter of $28.3 million, which was primarily driven by cash flow from our operations of $61 million, but also aided by cash received from our property insurer of nearly $18 million.

轉向幻燈片6，強勁的營運業績，加上有利的金屬價格，轉化為本季2,830 萬美元的自由現金流，這主要是由我們營運中6,100 萬美元的現金流推動的，但也得益於我們從我們的業務中收到的現金。

As I highlighted in the prior slide, our priority remains on continued investment in our operations while also paying down the revolver. The chart on the slide shows the sources and uses of cash during the quarter. We invested $50 million in capital in our operation, of which $26 million related to growth. While we also paid $78 million on our revolver and exited an improvement in our net debt of $25 million.

正如我在上一張投影片中所強調的那樣，我們的首要任務仍然是繼續投資我們的運營，同時還清左輪手槍的費用。投影片上的圖表顯示了本季現金的來源和使用情況。我們在營運中投資了 5000 萬美元，其中 2600 萬美元用於成長。同時我們也支付了 7,800 萬美元的左輪手槍費用，並減少了 2,500 萬美元的淨債務。

As we move to slide 7, I'll speak more about some of the financial highlights from the quarter. In the second quarter, our revenues were dominated by silver at 46% of our sales, followed by gold at 34% and a nice byproduct credit, which equated to 20% of total revenue.

當我們轉到幻燈片 7 時，我將更多地談論本季度的一些財務亮點。第二季度，我們的收入以白銀為主，佔銷售額的 46%，其次是黃金，佔 34%，還有不錯的副產品信貸，相當於總收入的 20%。

And not only did silver dominate our revenue profile, we also achieved a margin of 58% of our all-in sustaining cost per ounce of silver, which in turn drove our free cash flow generation and partial paydown of the revolving credit facility. Our net leverage ratio improved to 2.3 times. And as noted, we expect we will achieve our target of less than 2 times by the end of the year.

白銀不僅在我們的收入中占主導地位，而且我們還實現了每盎司白銀總維持成本的 58% 的利潤，這反過來又推動了我們的自由現金流的產生和循環信貸安排的部分償還。我們的淨槓桿率改善至2.3倍。如前所述，我們預計到今年年底我們將實現不到 2 倍的目標。

With that, I'll pass the call to Carlos (inaudible)

這樣，我會將電話轉給卡洛斯（聽不清楚）

Thank you, Russell. I will start on slide 9, Greens Creek flagship mine, consistent performance. Greens Creek delivered another strong and consistent quarter producing 2.2 million ounces. Mill throughput for the quarter was 2,481 ton per day and was lower due to the completion of multiple mill maintenance projects, including installation of the new primary screen, relining of the grinding circuit, draw magnet installation among others.

謝謝你，拉塞爾。我將從幻燈片 9 開始，Greens Creek 旗艦礦場，性能穩定。Greens Creek 季度產量再次強勁且穩定，產量達 220 萬盎司。本季磨機吞吐量為每天 2,481 噸，較低是由於完成了多個磨機維護項目，包括安裝新的主篩、更換研磨迴路、安裝牽引磁鐵等。

Silver grades were lower in the quarter of mine grades revert to mine plan. Cash costs and all-in sustaining cost for the quarter declining to $0.19 per ounce and $5.40 respectively, driven by lower treatment and refining charges, higher byproduct credits and lower sustaining capital due to delays in equipment purchases.

在礦山品位恢復到開採計畫的季度中，白銀品位較低。本季現金成本和整體維持成本分別下降至每盎司 0.19 美元和 5.40 美元，原因是處理和精煉費用降低、副產品信貸增加以及設備採購延遲導致維持資本減少。

The mine generated $34 million in free cash flow from the quarter. It has generated $72 million in the first half of the year. We expect the mine to continue its strong performance in the second half and are lowering its cash costs and all-in sustaining cost guidance to reflect its strong performance year to date and expected higher byproduct credits.

該礦本季產生了 3,400 萬美元的自由現金流。今年上半年它的營收為 7,200 萬美元。我們預計礦場下半年將繼續保持強勁表現，並正在降低現金成本和整體維持成本指導，以反映其今年迄今的強勁表現和預期更高的副產品信用。

Capital guidance is also reduced due to timing of equipment purchases in some capital projects. Greens Creek is a premier silver mine, the 11 largest in the world. And the team continues to do an excellent job in delivering consistent results safely every quarter.

由於某些資本項目的設備採購時間安排，資本指導也有所減少。Greens Creek 是首屈一指的銀礦，是世界上第 11 大銀礦。該團隊繼續出色地完成每季安全交付一致結果的工作。

Lucky Friday, on track to achieve 5 million ounces in 2024. Turning to slide 10, Lucky Friday's operational performance established new records in the mine's 80 year history. The mine produced a record 1.3 million ounces of silver, achieve a record mill throughput of 1,181 ton per day and deliver record sales.

幸運星期五，預計在 2024 年達到 500 萬盎司。轉向幻燈片 10，幸運星期五的營運表現創造了該礦 80 年歷史的新記錄。該礦生產了創紀錄的 130 萬盎司白銀，實現了創紀錄的每天 1,181 噸的工廠吞吐量，並創造了創紀錄的銷售量。

Cash cost for the quarter were $5.32 per ounce. All-in sustaining cost for the quarter were $12.74 per ounce, both lower than the first quarter of 2024. Cost per ounce have exceeded our guidance for the first half of 2024 because of higher labor and contractor costs, additional costs related to mitigation work done in the number two shaft which is the secondary (inaudible) a higher profit sharing under our collective bargaining agreement due to a strong financial performance.

本季現金成本為每盎司 5.32 美元。本季的總維持成本為每盎司 12.74 美元，均低於 2024 年第一季。每盎司成本超出了我們對2024 年上半年的指導，原因是勞動力和承包商成本較高，以及與二號井中進行的緩解工作相關的額外成本，這是我們集體談判協議下的次要（聽不清）利潤分享實現強勁的財務業績。

Capital investment of the mine was $11 million in significant sustaining capital projects in the quarter, including repairs to the number two shaft, engineering design and initiated construction of the surface cooling project and equipment purchases.

本季該礦的資本投資為 1,100 萬美元，用於重大維持資本項目，包括二號豎井的維修、工程設計和啟動表面冷卻項目的建設以及設備採購。

These regular operational performance with strong metal prices dropped free cash flow generation of $33.7 million in the second quarter, including insurance proceeds of $17.8 million. The mine is on track to be a 5 million ounce producer this year. We are increasing guidance for the mine to reflect higher cost included in the first quarter and expected higher profit sharing because given the strong performance and better prices.

這些常規營運業績和強勁的金屬價格使第二季的自由現金流減少了 3,370 萬美元，其中包括 1,780 萬美元的保險收益。該礦今年的產量可望達到 500 萬盎司。我們正在提高對該礦山的指導，以反映第一季包含的更高成本，並由於強勁的業績和更好的價格而預期更高的利潤分享。

The UCB mining method in our capital investments in the mine, like the service hoist which de-bottlenecked our hoisting capacity and the ore bunker which added capacity to stockpile ore for multiple days and decoupling the mining mill are instrumental in Lucky Friday's strong operational performance. And we expect this to continue. Most importantly, this quarter performance was a testament to the excellent team we have at Lucky Friday.

我們在礦山資本投資中採用的UCB 採礦方法，例如解除了提升能力瓶頸的服務提昇機和增加了多天礦石儲存能力並與採礦廠脫鉤的礦倉，對於幸運星期五的強勁運營業績發揮了重要作用。我們預計這種情況會持續下去。最重要的是，本季的表現證明了幸運星期五的優秀球隊。

Casa Berardi, executing a surface transition plan. On slide 11, Casa Berardi produced 23,000 ounces in the second quarter at cash cost of $1,701 per ounce and all-in sustaining costs of $1,825, both within the guidance range.

Casa Berardi 正在執行地面過渡計劃。在投影片 11 中，Casa Berardi 第二季度產量為 23,000 盎司，現金成本為每盎司 1,701 美元，總維持成本為 1,825 美元，均在指導範圍內。

The mine generated positive free cash flow helped by the strong gold prices. The team has been carefully reviewing store-by-store analysis for underground operations and within the favorable gold prices, the mine has extended the west mine operations to the end of 2024.

在金價堅挺的幫助下，該礦產生了正的自由現金流。該團隊一直在仔細審查地下作業的逐家分析，在有利的金價範圍內，礦場已將西礦作業延長至 2024 年底。

Thus, we are increasing the production guidance to 80,000 ounces. Thus, the capital guidance is unchanged for the mine. We have more work to do at Casa Berardi as we continue on the surface transition and evaluation of underground (inaudible)

因此，我們將產量指導值提高至 80,000 盎司。因此，該礦的資本指引保持不變。隨著我們繼續進行地表過渡和地下評估，Casa Berardi 還有更多工作要做（聽不清楚）

Keno Hill, largest silver producer in Canada. Moving to slide 12, Keno Hill produced 0.9 million ounces and throughputs surpassed 400 ton per day. The mine has produced 1.5 million ounces in the first half of the year, already exceeding 2023 full year of production.

基諾山 (Keno Hill)，加拿大最大的白銀生產商。轉到幻燈片 12，Keno Hill 產量為 90 萬盎司，每天的吞吐量超過 400 噸。該礦上半年產量為150萬盎司，已超過2023年全年產量。

Our all-injury frequency rate at the mine declined by 12% to 1.89 and we have continued to make significant improvements in safety and environmental procedures of the mine. Despite the strong production, we are not declaring commercial production at the mine because our work is not done.

我們礦井的所有傷害頻率下降了 12% 至 1.89，我們繼續對礦井的安全和環境程序進行重大改進。儘管產量強勁，但我們並未宣布該礦已實現商業生產，因為我們的工作尚未完成。

But first, let me talk about the improvement we have seen. In the fourth quarter of 2023, we initiated a 10 step action plan to implement best practices in safety training, reporting and supervision. The program has increased the focus on hazard identification and control, improvement reporting of safety metrics, and institute several safety standards such as traffic management and fall protection, just to name a couple.

但首先，讓我談談我們所看到的改進。2023年第四季度，我們啟動了一項十步行動計劃，以實施安全培訓、報告和監督方面的最佳實踐。該計劃更加重視危險識別和控制、改進安全指標報告，並制定了多項安全標準，例如交通管理和墜落防護等。

We have also started mining the Flame & Moth deposit to supplement the feed from Bermingham. As we approach the colder winter months to manage the clay from Bermingham, the feed from Flame & Moth, even though relatively lowering grade to help improve crushing rates with the commending of ore.

我們也開始開採 Flame & Moth 礦床，以補充伯明罕的飼料。當我們接近寒冷的冬季時，我們會管理來自伯明翰的粘土、來自 Flame & Moth 的飼料，儘管相對降低品位以幫助提高礦石的破碎率。

There are also key infrastructure projects remaining to complete, the cemented tails batch plant will commence construction in the fourth quarter, and we change the mining method to underhand at Bermingham in the second half of 2025.

還有一些關鍵基礎設施項目有待完成，水泥尾礦批處理廠將於第四季開始建設，我們將於 2025 年下半年將伯明罕的採礦方法改為暗工。

We expect these will make ground condition safer and more productive. With increased mining rates, we also have work to do on water treatment upgrades and construction of dry stack tails. We are increasing our capital guidance for the year to $45 million to $50 million as we work through key capital initiatives, increased underground development, cemented tails batch plant, water treatment upgrades, and work on dry stack tailings.

我們預計這些將使地面條件更安全、更有效率。隨著採礦率的提高，我們還需要進行水處理升級和乾堆尾部建設。我們將把今年的資本指引提高到 4,500 萬至 5,000 萬美元，因為我們致力於實施關鍵資本措施、增加地下開發、水泥尾礦批量工廠、水處理升級以及乾堆尾礦工作。

With the operation also achieving higher throughput of 400 ton per day, production costs excluding depreciation are expected to be in the range of $25 million to $27 million as seen in second quarter. With Keno Hills, 11 year reserve mine life, the strong geological potential of the operation in the district and the jurisdiction, we are optimistic that our investment in Keno Hill will bear high returns in the long term.

由於該業務還實現了每天 400 噸的更高吞吐量，第二季不包括折舊的生產成本預計將在 2,500 萬美元至 2,700 萬美元之間。憑藉基諾山11年的礦山儲備壽命以及該地區和轄區運營的強大地質潛力，我們樂觀地認為我們在基諾山的投資將獲得長期高回報。

And with the exploration success we are seeing, we are excited and expect that Keno's reserve life should grow beyond its current 11 years.

隨著我們所看到的勘探成功，我們感到很興奮，並預計 Keno 的儲備壽命將超過目前的 11 年。

With that, I will pass the call to Kurt to speak about Keno's exploration success.

接下來，我將打電話給庫爾特，談論基諾的探索成功。

Thank you, Carlos. Slide 13 shows planned maps of our underground and surface diamond drilling target areas at Keno Hill. Underground drilling is focused on extending mineralization and resource conversion in both the Bermingham Bear zone and the Flame & Moth zone veins and continues to intersect high grade silver mineralization over significant widths, which highlights the potential for strong silver mineralization within the district.

謝謝你，卡洛斯。幻燈片 13 顯示了基諾山地下和地面鑽石鑽探目標區域的計畫地圖。地下鑽探的重點是擴大伯明罕熊區和火焰與蛾區礦脈的礦化和資源轉化，並繼續在相當大的寬度上與高品位銀礦化相交，凸顯了該地區強大的銀礦化潛力。

High grade intercepts in both zones, including 35.4 ounce per ton silver over 20.2 feet in the Bear zone and 28.6 ounces per ton silver over 22.3 feet in the Flame & Moth zone should positively impact resource models and are providing more geologic information and confidence to our resource base.

這兩個區域的高品位攔截，包括熊區20.2 英尺以上每噸35.4 盎司白銀和火焰與蛾區22.3 英尺以上每噸28.6 盎司白銀，應該會對資源模型產生積極影響，並為我們提供更多的地質資訊與信心。

Three surface drills are also active on the property testing multiple targets, including the Bermingham Deep, the Bermingham Townsite, Elsa17-Dixie, and Silver Spoon target areas that have potential for the discovery of additional large high grade silver deposits.

三台露天鑽孔機也積極測試多個目標，包括 Bermingham Deep、Bermingham Townsite、Elsa17-Dixie 和 Silver Spoon 目標區域，這些區域有可能發現更多大型高品位銀礦床。

New exploration intercepts continue to add to our understanding of the structural geology of the target areas and demonstrate the mineral potential of this highly prospective district.

新的勘探斷點繼續加深我們對目標地區構造地質的了解，並展示這個高前景地區的礦產潛力。

With that, I'll pass the call back to Cassie.

這樣，我會將電話轉回給 Cassie。

Thanks, Kurt. I'll speak to our guidance on slide 14. Our silver production and consolidated cost guidance is affirmed. With Casa Berardi's underground being extended to the end of the year, we are increasing our gold production guidance. Capital guidance is higher because of Keno Hill as Carlos described.

謝謝，庫爾特。我將在幻燈片 14 上談談我們的指導。我們的白銀產量和綜合成本指導得到了肯定。隨著 Casa Berardi 的地下開採時間延長至今年年底，我們正在提高黃金產量指引值。正如卡洛斯所描述的，由於基諾希爾的存在，資本指導較高。

I'd like to wrap up our prepared remarks with a few thoughts on silver. The International Energy Agency released its mid-year electricity update in July. Global electricity demand is expected to grow 4% in 2024, that's the highest since 2007.

我想用一些關於白銀的想法來結束我們準備好的演講。國際能源總署於 7 月發布了年中電力更新數據。預計 2024 年全球電力需求將成長 4%，這是自 2007 年以來的最高水準。

Renewable energy sources are expected to set a new record with their share of electricity generation increasing to 35%, and solar is expected to meet half of the demand of renewable sources. Silver is a key component in solar technology and as such, silver demand in solar is expected to increase by 40 million ounces this year. That's the equivalent of four new Greens Creeks and eight new Lucky Fridays.

再生能源預計將創下新紀錄，其發電量佔比將增加至35%，其中太陽能預計將滿足再生能源一半的需求。白銀是太陽能技術的關鍵組成部分，因此，今年太陽能領域的白銀需求預計將增加 4,000 萬盎司。這相當於四個新的 Greens Creek 和八個新的幸運星期五。

Before we open the call to questions, I just want to congratulate all the Hecla employees for their commitment to our values of safety and environmental stewardship. Their dedication to Hecla every day makes Hecla the company it is. And with that, Ellie, I'd like to open the call to questions.

在我們開始提問之前，我只想祝賀所有 Hecla 員工對我們安全和環境管理價值觀的承諾。他們每天對 Hecla 的奉獻使 Hecla 成為一家真正的公司。艾莉，我現在想開始提問。

(Operator Instructions) Lucas Pipes, B. Riley Securities.

（操作員指示）Lucas Pipes，B. Riley Securities。

Thank you very much, operator. Good morning, everyone. This is Nick Giles on for Lucas. Guys, congrats on the quarter. Really nice to see such strong cash flow. Russell, maybe my first question is for you. Strong progress on the net leverage.

非常感謝您，接線生。大家早安。我是盧卡斯的尼克吉爾斯。夥計們，恭喜這個季度。很高興看到如此強勁的現金流。拉塞爾，也許我的第一個問題是問你的。淨槓桿率取得強勁進展。

What's your appetite for further paydown beyond the targets that you outlined? I believe you said below 2 times by the end of the year, you know, is there a target beyond that or will that be strong enough for now? Thanks very much.

在您概述的目標之外，您對進一步還款的意願是什麼？我相信你在今年年底前說過兩次以下，你知道，是否有一個超出這個目標的目標，或者目前這個目標是否足夠強大？非常感謝。

Yeah, thanks for the question, Nick. As it relates to deleveraging from the revolver, our plan will be to, you know, the first priority is going to make sure that we invest in our operations and put up the capital and then it's necessary, as well as the exploration programs, some of which Kurt just highlighted at Keno Hill.

是的，謝謝你的提問，尼克。由於它涉及到左輪手槍的去槓桿化，我們的計劃將是，你知道，首要任務是確保我們投資於我們的業務並投入資本，然後這是必要的，以及勘探計劃，一些科特剛剛在基諾山強調了這一點。

But we do anticipate we would generate free cash flow on top of that, and we'll allocate that capital to the revolver. Clearly, once it gets to zero, then we'll look to build the cash position back to levels that we've seen in the past, right?

但我們確實預計除此之外我們將產生自由現金流，我們將這些資本分配給左輪手槍。顯然，一旦它達到零，我們就會尋求將現金頭寸恢復到我們過去看到的水平，對嗎？

If you go back and you look in the past three, five years, we've had cash balances between $100 million and $200 million. We wouldn't be -- clearly, we wouldn't be concerned if we had a cash balance of that. And then, we would talk further about further allocation of capital at that point.

如果你回頭看看過去三到五年，我們的現金餘額在 1 億到 2 億美元之間。顯然，如果我們有現金餘額，我們就不會擔心。然後，我們將進一步討論當時的進一步資本配置。

Makes sense. You guys have made some real progress on the cost front as well. I know some higher labor costs at Lucky Friday. Can you just add some additional color on where you may still be seeing some inflation, where you've seen the most relief? Any other color would be appreciated.

有道理。你們在成本方面也取得了一些真正的進展。我知道幸運星期五的勞動成本較高。您能否在您可能仍然看到一些通貨膨脹、您已經看到最緩解的地方添加一些額外的顏色？任何其他顏色將不勝感激。

You know, I would suggest -- I'll let Carlos speak as well, but from the cost inflation standpoint, yeah, I don't think that we've seen anything specific to speak to. What we have seen, and we did note it both in the comments we made, but also in the earnings release, as at Lucky, you've seen the performance of Lucky Friday, and the performance of Lucky Friday has been very, very strong.

你知道，我建議——我也會讓卡洛斯發言，但從成本通膨的角度來看，是的，我認為我們沒有看到任何具體的內容。我們所看到的，我們確實在我們發表的評論中註意到了這一點，而且在收益發布中也注意到了這一點，就像在Lucky一樣，你已經看到了Lucky Friday的表現，而且Lucky Friday的表現非常非常強勁。

As we see the performance of Lucky Friday, there's a profit sharing component within the collective bargaining agreement. And so as if as we make more money at Lucky Friday, clearly we allocate some of that to the profit sharing. Maybe, Carlos, you have some details of those underlying costs that you want to highlight?

正如我們看到的「幸運星期五」的表現，集體談判協議中有利潤分享的部分。因此，如果我們在「幸運星期五」賺更多的錢，顯然我們會將其中的一部分分配給利潤分享。卡洛斯，也許您有一些想要強調的潛在成本的細節？

Well, it's -- the rates are normal from the previous year. I can say 5%, 7% in most of the mining supplies. And of course, it's still execution of projects every time that we have some updates, we are start seeing those increments. So also the number of contractors that are executing projects, of course, is there's always that additional cost associated.

嗯，與前一年相比，利率是正常的。我可以說在大多數採礦供應中佔 5%、7%。當然，每次我們有一些更新時，它仍然是專案的執行，我們開始看到這些增量。當然，執行專案的承包商數量也總是會產生相關的額外成本。

And additionally, I think, as has been the case since I've been in the industry, finding good electricians, mechanics and miners are hard. And so in certain cases, we do have to supplement our workforce with contractors for some of those skills. And we continually work to build out our workforce such that those are employees on our role versus contractors, and we'll continue to do that.

此外，我認為，正如我進入這個行業以來的情況一樣，找到優秀的電工、機械師和礦工很困難。因此，在某些情況下，我們確實必須透過具有某些技能的承包商來補充我們的勞動力。我們不斷努力建立我們的員工隊伍，使這些員工成為我們的角色而不是承包商，我們將繼續這樣做。

Got it. Got it. Well, guys, I appreciate all the comments. Keep up the good work.

知道了。知道了。好吧，夥計們，我感謝所有的評論。繼續做好工作。

Thank you.

謝謝。

Heiko Ihle, H.C. Wainwright.

海科‧伊勒 (Heiko Ihle)，H.C.溫賴特。

Hi, there. Thank you guys for taking my questions and congratulations on a pretty strong quarter there>

你好呀。謝謝你們回答我的問題，並祝賀這個季度的強勁表現>

Thanks, Heiko.

謝謝，海子。

There was a sentence in the report related to Keno Hill, and I'll quote you there, that you expect cost investment at the mine will remain at current levels as more work is required to deliver long term value. Any thought process on longer term cost development for the site?

報告中有一句話與基諾山有關，我將引用您的話，您預計該礦的成本投資將保持在當前水平，因為需要更多工作來實現長期價值。關於該網站的長期成本開發有什麼思考過程嗎？

I mean, earlier on this call you had mentioned that you've seen, your words tremendous success at the site. When should we see meaningful cost improvements? Is this a second half of next year kind of thing, especially since you just increased capital investment guidance for the site?

我的意思是，在這次電話會議的早些時候，您曾提到您已經看到，您的話在該網站上取得了巨大的成功。我們什麼時候應該看到有意義的成本改善？這是明年下半年的事情嗎，特別是因為您剛剛增加了對該網站的資本投資指引？

Yeah, yeah, Heiko. The way that we see it, and you can look at it and we lay out in our earnings release, those kind of five quarters of progress, right? And so you can see clearly that the investment that we've made has been able to increase the production, the tons milled, all of that.

是啊，是啊，海子。我們看待它的方式，你可以看看它，我們在收益報告中列出了這些五個季度的進展，對嗎？所以你可以清楚地看到，我們所做的投資能夠增加產量、研磨噸數等等。

You know, with that increase in production, we anticipate -- we actually see the cost going up as well, that's what we're trying to make clear. Once we get to a sustainable level of production, which some of that comes with the capital that we're putting in now, but we'll continue to put in. Carlos can speak to some of those specific projects, we would anticipate those costs coming down.

你知道，隨著產量的增加，我們預計 - 我們實際上看到成本也會上升，這就是我們想要澄清的。一旦我們達到可持續的生產水平，其中一些來自我們現在投入的資本，但我們將繼續投入。卡洛斯可以談論其中一些具體項目，我們預計這些成本會下降。

But first order of business is instilling a safe operating culture at the mine and environmental excellence. Then we go on to production. We've really made a lot of progress in those areas. And then now we're going to go on to -- in addition to all of those things, we're going to go to a cost optimization mode.

但首要任務是向礦場灌輸安全營運文化和卓越環境。然後我們繼續生產。我們在這些領域確實取得了很大進展。現在我們將繼續——除了所有這些事情之外，我們還將進入成本優化模式。

But we do clearly need to make sure that the mine is sustainable versus before we go on to that. Carlos, is there anything you'd like to add?

但在我們繼續之前，我們顯然需要確保該礦是可持續的。卡洛斯，你還有什麼要補充的嗎？

Well, the second half of the year is when -- as we say during the presentation, we started the Flame & Moth deposit back to production again. So we are going to supplement the production from Bermingham, having two mines running.

嗯，正如我們在演示中所說，今年下半年，我們將 Flame & Moth 礦床再次恢復生產。因此，我們將透過運營兩個礦山來補充伯明翰的產量。

The execution or the construction of the batch plant for tailings, which is going to make a huge impact next year, once we modified the mining method to underhand, and then the dry stack tailings, which is the next stage, which we are going to add additional capacity.

尾礦批量處理廠的實施或建設，這將在明年產生巨大的影響，一旦我們將採礦方法改為低手，然後是乾堆尾礦，這是下一階段，我們將要添加額外的容量。

So the three pieces of investment in the second half of the year of course, are going to be significant that are going to make a huge impact in the near future of the mine site.

因此，下半年的三項投資當然將非常重要，將在不久的將來對礦區產生巨大影響。

Perfect. You prefaced my follow-up question. I'm going to put a different one out there. Given the progress on the issue discussed earlier this call, is it fair to say that you expect to announce the new CEO by the end of this quarter?

完美的。你為我的後續問題做了序言。我打算放一張不同的。鑑於本次電話會議之前討論的問題取得的進展，可以公平地說您預計在本季末宣布新任執行長嗎？

You know, this is Cassie. Our progress is we are really making good progress on finding a new CEO. I can't really commit to a time on that, but we're moving very expeditiously. And as these things sometimes they take longer than you expect, sometimes it happens very quickly. We've had tremendous response in terms of people interested in it. So I'm confident that we will find the right person as soon as possible.

你知道，這是卡西。我們的進步是我們在尋找新執行長方面確實取得了良好進展。我無法具體承諾具體時間，但我們的進展非常迅速。由於這些事情有時需要比你預期的時間更長的時間，有時它發生得很快。我們得到了對此感興趣的人們的巨大反響。所以我有信心我們會盡快找到合適的人選。

Splendid. And with that, I'll get back in queue.

燦爛。這樣，我就會回到隊列中。

Thanks Heiko.

謝謝海子。

Joseph Reagor, ROTH MKM.

約瑟夫·雷戈爾，羅斯 MKM。

Hi, guys. Thanks for taking the questions. Kind of following a little bit on the Keno Hill questions. It sounds like, you know, your eyes view is, invest today, the mine will repay you in the future. But under what scenarios would you guys kind of cut the losses and move on from the mine?

嗨，大家好。感謝您提出問題。有點關注基諾山的問題。聽起來，你知道，你的觀點是，今天投資，礦場將來會給你回報。但在什麼情況下你們會減少損失並離開礦井呢？

Yeah, I would say and that's as we think about the operations, and in Cassie's opening remarks, she made this comment that Lucky Friday is a good example of a mine that in the early 2000s had great geological potential. Silver prices were low. The mine was not making money back then.

是的，我想說，這就是我們對營運的思考，在 Cassie 的開場白中，她評論說「幸運星期五」是 2000 年代初具有巨大地質潛力的礦山的一個很好的例子。白銀價格較低。那時候這個礦還沒有賺錢。

And if we had cut our losses and we had walked away at that point, you could see our portfolio would have been cut by a third at least from or a fourth, I guess, from operating assets. Free cash flow this quarter -- free cash flow at Lucky Friday rivaled Greens Creek. So the geologic potential at Keno Hill is significant. We have 11 years of reserves.

如果我們減少了損失並且當時就離開了，那麼您可以看到我們的投資組合將至少從營運資產中削減三分之一，或者我猜是四分之一。本季的自由現金流－Lucky Friday 的自由現金流可與 Greens Creek 相媲美。因此基諾山的地質潛力是巨大的。我們有11年的儲備。

We believe that the mine has a bright future ahead of it. We also believe that it's going to take a lot of work. So we do believe in the mine. And I wouldn't speculate about what specific actions would cause us to do that.

我們相信，該礦有著光明的未來。我們也相信這需要做很多工作。所以我們確實相信礦山。我不會猜測哪些具體行動會導致我們這樣做。

Yeah, and I would just add that, as Russell said, both Lucky Friday and Greens Creek has shown us that these are long term commitments we're planning on being in the Yukon for a long time. So we're committed to making this project forward, and we're confident we can get there.

是的，我想補充一點，正如拉塞爾所說，「幸運星期五」和「綠溪」都向我們表明，這些是我們計劃長期留在育空地區的長期承諾。因此，我們致力於推進這個項目，並且我們有信心能夠實現這一目標。

Okay. Fair enough. And then, kind of big picture question. In the post Phil era, is there any large philosophical changes we should expect? I know you guys mentioned about how your North American focused company, and within the last 18 months Phil had made some comments about potentially investing in South America. Has that changed? Any other big picture changes in the way you guys think about things?

好的。很公平。然後是一個大局問題。在後菲爾時代，我們應該期待什麼重大的哲學變革嗎？我知道你們提到了你們公司如何專注於北美，在過去 18 個月內，Phil 就可能投資南美發表了一些評論。那改變了嗎？你們思考問題的方式還有其他大的改變嗎？

Sure. This transition has allowed us to sort of reassess, review where we are, and for the time being we're executing on our strategy to maximize the value of our North American assets. We've got some great assets, and we believe there's more value in all of them. That said, that doesn't mean we won't ever look at opportunities outside of North America, but we are not going to be doing that, at least in the near term.

當然。這一轉變使我們能夠重新評估、審視我們所處的位置，目前我們正在執行我們的策略，以最大化我們北美資產的價值。我們擁有一些優質資產，我們相信所有這些資產都具有更大的價值。也就是說，這並不意味著我們不會尋找北美以外的機會，但我們不會這樣做，至少在短期內是如此。

Okay. Thanks for the color. I'll turn it over.

好的。謝謝你的顏色。我會把它翻過來。

Thanks Joe.

謝謝喬。

Kevin O'Halloran, BMO Capital Markets.

Kevin O'Halloran，BMO 資本市場。

Hi. Thanks for taking my question. Maybe just sticking with the Keno Hill theme. Can you remind us what are the main criteria you're looking for before declaring commercial production, and maybe what that timing looks like?

你好。感謝您提出我的問題。也許只是堅持基諾山的主題。您能否提醒我們，在宣布商業化生產之前，您正在尋找的主要標準是什麼，以及時間安排是怎樣的？

As it relates to what the specific criteria are, it would be a sustainable rate of production that would be somewhere in the range of 75% of our permitted production, which you'd look at our earnings release now and say we're there.

由於它與具體標準有關，因此可持續的生產力將在我們允許產量的 75% 範圍內，您現在查看我們的收益發布並說我們已經達到了這個水平。

In addition to that, getting the capital in place that allows that to go on a sustainable basis. What we're looking -- what we're not looking to do is have a production quarter like we did this quarter, which was actually very, very positive. And then, but not be able to sustain it.

除此之外，還要獲得資金，使其能夠永續發展。我們正在尋找的——我們不希望做的是像本季度那樣的生產季度，這實際上非常非常積極。然後，卻無法堅持下去。

We want to be able to ensure that we are able to sustain this over time. And in terms of timing, again, I'd like not to speculate on that. What we've tried to do in the release is, put out what the expectations are from an economic basis of the Keno Hill mine.

我們希望能夠確保我們能夠隨著時間的推移維持這一點。至於時間安排，我不想再對此進行猜測。我們在新聞稿中試圖做的是，根據基諾山礦的經濟基礎提出預期。

So that's why we guide those operational costs. We guide the capital, both sustaining and non-sustaining, and the production. So yeah I think that we try to give the market all of the metrics that's needed to calculate those things if someone finds that necessary. But what we don't want to do is put any unnecessary burden, or pressure on our operators.

這就是我們指導這些營運成本的原因。我們引導維持性和非維持性資本以及生產。所以，是的，我認為，如果有人認為有必要的話，我們會嘗試向市場提供計算這些事情所需的所有指標。但我們不想做的就是給我們的運營商帶來任何不必要的負擔或壓力。

Those guys are right now working to instill a safety culture as we've talked about and environmental excellence. So we don't want to add another metric, but we also want to give the market what's needed for the market to understand what the economics of that mine will look like.

這些人現在正在努力灌輸我們所討論的安全文化和卓越的環境。因此，我們不想添加另一個指標，但我們也想向市場提供所需的信息，讓市場了解該礦山的經濟效益。

Okay. That makes sense. Thanks for that. On the cost guidance increase at Keno, can you give a bit more color on whether that's driven mostly by the higher activity and the higher production, or are there some CapEx items or other stuff that wasn't included previously into that cost guidance?

好的。這是有道理的。謝謝你。關於基諾成本指導的增加，您能否提供更多信息，說明這是否主要是由較高的活動和較高的產量驅動的，或者是否有一些資本支出項目或其他內容以前未包含在成本指導中？

Well, it's both. As we say, we are building our team. We are building safety culture. We are doing environmental upgrades, and we are executing capital projects. We are expanding the camp too. So we had a really significant group of people working around to improve the place, and that's why we are estimating those costs.

嗯，兩者都是。正如我們所說，我們正在建立我們的團隊。我們正在建立安全文化。我們正在進行環境升級，我們正在執行資本項目。我們也在擴大營地。因此，我們有一群非常重要的人在努力改善這個地方，這就是我們估算這些成本的原因。

Okay. Thanks for that. Last one for me. Just quickly, can you give us a sense of roughly the percentage of ore from Flame & Moth that we should be expecting over the coming quarters (multiple speakers)

好的。謝謝你。最後一張給我。請快速告訴我們，未來幾季我們預計從 Flame & Moth 獲得的礦石的大致百分比（多個發言者）

Yeah. For the second half, Flame & Moth is going to supplement the production with around 200,000 ounces, which is 15% of the total ounces of the second half of the year.

是的。下半年，Flame & Moth將補充約20萬盎司的產量，佔下半年總盎司的15%。

Okay. That's helpful. Thanks a lot and I'll pass it on to the next caller.

好的。這很有幫助。非常感謝，我會將其傳遞給下一個來電者。

Mike Parkin, National Bank.

麥克·帕金，國家銀行。

Thanks, guys. Just following up on the cost questions. We've seen quite an improvement in the income statement ramp up in suspension costs coming down nicely. Is that where we're kind of seeing the transition of some of that flowing now through the operating costs line, specifically at Keno Hill, that's ramping up?

謝謝，夥計們。只是跟進成本問題。我們看到損益表有了相當大的改善，暫停成本也大幅下降。我們是否可以看到現在透過營運成本線（特別是在基諾山）的營運成本正在轉變？

And if that is the case, can you give us a sense of how we should be thinking about that ramp up in suspension cost expense on a go-forward basis. Should we expect that to be stabilizing around [$5 million], or will it actually be getting into the zero territory in the not-too-distant future?

如果是這樣的話，您能否讓我們了解我們應該如何考慮未來暫停成本費用的增加。我們是否應該期望其穩定在 [500 萬美元] 左右，還是會在不久的將來真正進入零區域？

Thanks, Mike. Yeah. So the way that the ramp up in suspension costs, that line item on the income statement works for an operation that's in ramp up like Keno Hill. What we'll do is we'll allocate -- we expend a certain amount of costs during the quarter, and we'll allocate the amount that equals revenue to the cost of sales.

謝謝，麥克。是的。因此，停工成本的增加，損益表上的該行項目適用於像基諾山這樣正在增加的業務。我們要做的是分配——我們在本季度花費一定數量的成本，然後將等於收入的金額分配給銷售成本。

So if you look page 6 of our earnings release, you can see that our revenue in Q2 '24 was $29 million. We allocated $29 million of cost to -- cost of sales for Keno Hill. That's both cash and non-cash. So you end up with a zero gross profit.

因此，如果您查看我們收益發布的第 6 頁，您會發現我們 24 年第二季的營收為 2,900 萬美元。我們將 2900 萬美元的成本分配給基諾山的銷售成本。這包括現金和非現金。所以你最終的毛利為零。

And then the remainder goes to the ramp up in suspension costs. So as you see the improvement at Keno Hill, you see the ramp up in suspension costs come down. The other thing you'll see is in Q1, we had a bit of Lucky Friday costs in there for January. So that's come off in Q2 and caused that improvement.

然後剩下的部分將用於增加暫停成本。因此，當您看到基諾山的改善時，您會發現暫停成本的上升有所下降。您會看到的另一件事是在第一季度，我們在一月份有一些幸運星期五的費用。所以這在第二季就出現了，並帶來了改善。

Then once -- at some point, I expect we will -- that line item will go away for Keno Hill. It's -- we don't know when that'll be, that'll be when we declare commercial production or it makes a total gross profit. But what you will see is suspension costs related to Nevada and Mexico will remain in that line item.

然後一旦 - 在某個時候，我希望我們會 - 該訂單將在基諾山消失。我們不知道那會是什麼時候，那會是我們宣布商業生產或實現總毛利的時候。但您將看到與內華達州和墨西哥相關的暫停費用仍將保留在該行項目中。

And those are roughly, say, $3 million or so for Nevada, a quarter. And so those will continue. We continue to try to work those costs down though as we are transitioning more from Nevada to just being an exploration project.

比如說，內華達州四分之一的資金大約是 300 萬美元左右。所以這些都會繼續下去。我們將繼續努力降低這些成本，因為我們正在從內華達州過渡到只是一個勘探項目。

All right. That's a great color. Thanks man.

好的。這是一個很棒的顏色。謝謝夥計。

Thank you.

謝謝。

This concludes our question and answer session. I'd now like to hand back over to Cassie Boggs for final remarks.

我們的問答環節到此結束。現在我想把最後的發言權交給卡西·博格斯。

Thanks, everyone. We appreciate you calling in and we very much appreciate you listening to us. We look forward to this next quarter and having another great quarter. Thanks.

謝謝大家。我們感謝您的來電，也非常感謝您聆聽我們的演講。我們期待下一個季度並迎來另一個美好的季度。謝謝。

Thank you, everyone, for attending today's call. You may now disconnect. Have a wonderful day.

謝謝大家參加今天的電話會議。您現在可以斷開連線。祝你有美好的一天。