Earnings Call: Q3 2022

Nov 8, 2022

Welcome to SSR Mining's Third Quarter 2022 Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask I would now like to turn the conference over to Alex Hunszak from SSR Mining. Please go ahead. Thank you, operator, and hello, everyone. Thank you for joining SSR Mining's Q3 2022 conference call, during which we will provide an update on our business and a review of our financial Our Q3 2022 consolidated financial statements have been presented in accordance with U. S. GAAP. These financial statements have been filed on EDGAR, SEDAR, the ASX and are also available on our website. To accompany our call, indicated. Today's discussion will include forward looking statements, so please read the disclosures in the relevant documents. Joining us on the call today are Rod Antal, President and CEO Allison White, CFO and Steve Beckman, COO. Now I will turn the call over to Rod for his opening remarks. Great. Thanks, Alex, and hello to you all and thanks for joining us. In the Q3, our business was clearly impacted by the suspension of the Copler mine. I'm pleased to report that operations restarted at the end of September And ramped up smoothly. Despite the bump in the road at Copler, our business remains in incredibly strong position With a robust balance sheet that has enabled us a capital returns yield of more than 5% over 2 consecutive years. Looking forward, we're in excellent shape with all four of our assets poised for a strong quarter fall, where we expect to return to significant free From Copler and the delayed ounces from Marigold, we produced 107,000 gold equivalent ounces. Year to date production is now 441,000 gold equivalent ounces. Our 3rd quarter all in sustaining costs We're $1901 per gold equivalent ounce after absorbing more than $30,000,000 in cash costs incurred at Copler during the quarter. Year to date, our all in sustaining cost is $13.31 per gold equivalent ounce. I'm going to speak a little bit more about guidance later on in the presentation. Financially, our balance sheet And free cash flow outlook supported the repurchase of $100,000,000 in shares under our NCIB year to date. Our aggressive execution on the NCIB, which was only announced in June, has the company on track for nearly $160,000,000 in capital returns in 20 2, a +5 percent capital return yield. On the growth front, we received the EIA for the first stage at the Cakmaktepe Extension project at Copler in the quarter. With the infrastructure construction underway, it keeps us on track the first production in 2023. As a reminder, the project will add more than 1,200,000 ounces To the Copler life of mine plan for an incremental CapEx of around $70,000,000 The results From the C2 PFS are expected next year in an updated technical report for Chervila and we are planning to At the close of the year, we are planning to release exploration updates for Marigold, Seabee and Copper Hill. This is in addition to the positive drill results we just released for the Cacamacca Bay Extension. Lastly, we continue to execute On our strategy of redeploying proceeds from non core asset sales in our core jurisdictions with the announcement that the Calcutepe Transaction in October. So just moving on to the next slide on ESG. And I want to highlight our core values in the relation to some of the initiatives that we have. In 2022, we have continued to deliver against the goals Outlined in our annual sustainability report and as an example, we continue to roll out our integrated management systems where full implementation is expected by year end. Furthermore, we are progressing the development of a water stewardship strategy As we seek to continually reduce our environmental footprint going forward, there'll be more to come in our update early next year. On Slide number 5, as we of 700,000 ounces of annual gold production. With all operations returning to steady state in the 4th quarter, We remain confident in our ability to maintain and grow on this production baseline through 2,030 and possibly beyond. The solid foundation coupled with the abundant growth targets being progressed across the portfolio means that this production graph It's just the baseline for us to continue to build on. On the Slide 6. As a company, we've established a proven history of discipline and accretive M and A, as well as project development. This includes the sale of Pitera, which closed in the Q3 and was another piece in our non core asset sales that have generated $245,000,000 in sale value since early 2021, more than 2 times the street consensus ascribed to those assets. As I noted, we have successfully redeployed those proceeds into our core jurisdictions. 1st, with the Tiger acquisition, Expanding our CB land package earlier this year and most recently with the Cauquettepe transaction that expands our ownership The entire triple district to 80%. This more recent transaction provides material operational, financial and exploration synergies, Including the elimination of further sorry, future oil purchases payments to account for the previously existing ownership differential. Kirkland is our cornerstone asset and we are pleased to increase our exposure to the district's longer term growth and excellent exploration potential. Given our strong track records of operations and project execution as well as our robust balance sheet, On to Slide 7. Over the last 2 years, we have returned our strong free cash flow generation, which is reflected in our capital returns programs. To that effect, so far this year, we returned $144,000,000 to shareholders Through the base dividend and share buyback program and more impressive since the beginning of 2021, we have returned more than 90 3rd, give our free cash flow generation to shareholders, which is delivering on one of the key promises post the merger. I just want to move on to Slide 8 and discuss the quarter. A few points that are relevant to consider At the end of the Q3, Chevrolet restarted, as I mentioned, at the end of the quarter and ramp up of the sulfide plant has gone extremely well, which was a significant achievement for our team. The year to date production of 441,000 ounces And all in sustaining cost of $13.31 reflects the suspension of Copler and the delays of recovering gold at Marigold. With our operations back to steady state, we expect to return to strong free cash flow in quarter 4 and beyond. We're definitely excited by the stable of low capital intensity growth opportunities and continue to advance each one of these where a number of updates are expected before year end. Moving on to Slide 9. Just want to make a few comments on guidance. We are on track for a strong quarter fall, but have been unable to claw back the lost production and are now Revising our full year production guidance to 620,000 to 655,000 ounces. This reflects the slower than expected leaching of the stacked high grade ounces of Marigold, which Stew will elaborate on further, as well as the shutdown at Turfler. At Puna, they have done a great job in meeting the original guidance, But unfavorable metal prices have impacted the gold to silver ratio, meaning less GEOs on a conversion as compared to our original guidance. And finally, Seabee remains on track for the previously announced improved production guidance that was announced last quarter, which is a great result for that team. Our all in sustaining cost guidance has increased to $13.15 to $13.45 The gold equivalent has to reflect this new production guidance. This implies a quarter 4 production of around 200,000 ounces and thus In quarter 4, we are on track to meet that target. As I mentioned, we have a number of exploration updates Due before year end and moving into next year, we plan on releasing the PFS for C2 and a new technical report for Marigold. Internally, we're encouraged about the future for each one of the assets and the exploration results this year continues to support this view. So with that, I'm going to now turn the call over to Alison, who will then discuss our financial performance starting on Slide 10. Thank you, Rod, and good afternoon or good day to everyone on the call. This quarter, we produced nearly 107,000 gold equivalent ounces, bringing year to date production to 444,000 gold equivalent ounces. Gold equivalent sales of 97,000 ounces in the Quarter drove revenue of $167,000,000 Attributable net loss for the quarter was $26,000,000 For a $0.12 loss per diluted share, an adjusted attributable net loss was negative $14,000,000 or a $0.07 loss per diluted share. It is worth highlighting that attributable and adjusted attributable losses include more than $40,000,000 in care and maintenance costs incurred at Schirpler during the suspension of operations that occurred for almost the entire quarter. On the right side of the slide, I will touch on the reported $0.07 loss For diluted share, that is calculated based on the company's definition of adjusted attributable net income or loss per share. Attributable net loss of $0.12 per share was adjusted for transaction costs associated with the sale of Piazzeria, Tax adjustments and minor adjustments for foreign exchange fluctuations during the quarter. Turning to Slide 11, We can talk about SSR's financial position. At the end of the quarter, the company maintained a cash and cash equivalent balance of nearly $800,000,000 with net cash of more than $450,000,000 The strong cash balance Reflects $100,000,000 in share repurchases, dollars 44,000,000 in dividend payments to shareholders, dollars 53,000,000 in debt repayment and $35,000,000 in dividends to joint venture partners thus far during 2022. With our existing net cash position and the expectation of a strong Q4 of free cash flow, I would like to reiterate our 3 priorities with respect to capital allocation within the business. 1st and foremost, we will continue to reinvest in growth within the business, Including our exceptionally high return C2 and Cacmaktepe extension projects, which will account for approximately $300,000,000 in total growth capital through 2025. 2nd, we are committed to maintaining a robust balance sheet, The weather volatility in the commodity price environment and to ensure all of our capital commitments, debt servicing requirements and base dividend payments are fully funded even in the event of a potential downturn in the gold price cycle. Our base dividend at $0.07 a share can also weather gold price downturns as it is payable to a gold reserve price of $13.50 per ounce. We expect $88,000,000 remaining on the term loan to be repaid in full by the end of 2023. Overall, we've generated $371,000,000 in free cash flow or $300 per gold equivalent ounce produced since the start of 2021. Finally, we remain committed to capital returns to our shareholders as the 3rd pillar of our allocation program. This year, we have repurchased $100,000,000 in shares year to date, Coupled with our 40% dividend increase that was announced earlier this year, we have returned nearly $150,000,000 to shareholders, marking our 2nd consecutive year with a capital return yield above 5%. Since the start of 2021, we have returned approximately $335,000,000 to shareholders and produced 1,200,000 ounces during the same period, returning $2.70 to shareholders per gold equivalent ounce produced in that period of time. Considered in aggregate, We have a clear capital allocation framework in place that we routinely execute on and we will continue to be disciplined and our approach to capital returns well into the future. And with that, I'll turn it over to Stu for an operational update. Thank you, Alison. As always, I'll start with EHS and S. We were pleased to restart operations at Copler at the end of the quarter, Following the completion of improvement initiatives required by the Turkish authorities, the suspension was disappointing, but did allow us To revisit a number of our processes and systems to improve our performance. The smooth start up of operations is a testament to the work by the team. Positively and separately, we received a number of outstanding permits in Turkey during the quarter. We will continue to work hard to maintain and build upon these relationships, ensuring positive contributions to our stakeholders and host communities. Safety and the care of our teams, communities and the environment are core values and we believe are also foundational to the business performance. Moving on to Slide 13 and I'll talk about Copler. At Copler, the operation ramped up smoothly in the 3rd quarter, an impressive accomplishment by our And by our team given the length of the suspension. As discussed on the Q2 call, we were able to accelerate maintenance on the autoclave 1 during the suspension, Including the completion of partial relining of the face bricks. As a result, there is no scheduled major planned maintenance the sulfide plant for the remainder of the year, allowing us to operate the order closed without major interruption throughout Q4. Operating time and production was very limited in the Q3, so per ounce costs are not really meaningful. For the full year, we expect to produce 180,000 to 190,000 ounces at an all in sustaining cost of $13.45 to $13.75 per ounce. The reduced production guidance reflects our careful and measured restart of the operations As well as later than expected access to oxide ounces. With respect to the growth initiatives, We received the EIA for the first phase of the operation of Cakmaktepe extension and construction on infrastructure is well underway And we remain on track to deliver 1st production in 2023. We are also progressing the C2 project through PFS And expect to release the results of this more optimized project to the market next year. We're excited by the potential of both these high return, low The previously discussed Carpelethe transaction will also provide Also help us to drive long term costs and operational synergies, while allowing the exploration team to sink their teeth into a number of highly Ensure exploration targets across the district without the extra complexity of mixed ownership proportions. For example, at Cakmaktepe extension, half of the holes drilled in the October exploration release were on Casteltepe ground, Growing the deposit across the lease boundary and further reinforcing our rationale for the transaction. Moving on to Slide 14 and we'll update on Marigold. Marigold again delivered quarter on quarter improvement, but production timing continues to be impacted By the stacking of finer material from the North Pits. Production of 52,000 ounces at an all in sustaining cost of $14.44 per ounce was behind expectations, but we are starting to see a positive trend with respect to leaching in the 4th quarter. A couple of the drivers for the slower than previously predicted lease rate were that we ended up with more tons of fine material presenting in the North pits than schedule. This is a good thing and it was coincidental with less durable material coming from the Mackay pit and drive the proportional fines in the heap leach up. Also, on advice from some subject matter experts based on experience at other sites, we've started Slowing the application of the leach solution when leaching is first started with an aim to improve overall performance of the heap leach. As a result, reflecting on the year to date lease cycle delays due to the stacking of final war, as well as the lingering challenges With shovel availability, we now expect full year production of 195 to 205 Ounces at an all in sustaining cost of $14.10 to $14.40 per ounce. The very poor performance of the Komatsu PC-seven thousand shovels has been compensated for by delayed retirement Of all the DIG units and we expect to stack at about the budgeted ounces by the end of the year. Stacking of higher grade material continued in the quarter with more than 135,000 ounces recoverable ounce stacked at a grade of 0.63 grams per tonne, which is very high for Marigold over the 2nd and third quarters. In addition, October was a monster month with 48,000 recoverable ounces stacked to the pad in just 1 month. As a result, we are forecasting a strong production in late Q4, which will carry into the first half of twenty twenty three. Just as a comment, another comment, we have had a number of internal and external reviews of the heap leach Performance across the year and are confident that the gold will be recovered and that it is just timing. Permitting continue to advance at Valmy and the EA is expected of the expanded Valmy pit Remains on track for 2024. We have an exploration release coming in the next few weeks, which aims to bring more mineralization and Ultimately reserve within the Balmy EA areas. We will build as much of this as possible into the updated Nerigold technical report that we expect to release to the market in 2023. Move on to Slide 15, please. BBQ3 was generally in line with Pan, following the record first half production, the mine continued to improve its underlying performance, but grades were lower. As a result of Q3, we expect to hit the lower end of our previously upgraded full year production of 150,000 to 160,000 ounces, An extremely impressive outcome for the operation. All in sustaining costs of $7.15 to $7.45 an ounce is also in line with prior expectations. We are slightly ahead of schedule to mine a reserve area On very high grade later in Q4. Also, we are advancing exploration of the extension of that very high grade zone that delivered the out of reserves spectacular first half production. This zone pinched out just below the last stope, It appears to open back up a couple of levels down and we expect that we'll be able to mine this area in 2023. We just need to do a bit more drilling and prove up the zone before we can commit it to the mine plan. The plant has been operating at record throughputs And we have a good sized run of mine stockpile in front of it. Just as a reminder that the Seabee plant typically has capacity beyond that The mine and so usually operates with little to no ROM stockpile. There are many highly prospective targets of future development of Seabee. We have continued to advance drilling and modeling at the Pahokee West target, which is potentially open pit option for Seabee. If successful, Hawke along with extensions to the resource now being exploited could potentially provide an exciting pathway to reframe CV. Most importantly, we continue to push hard on extending our understanding of the resources and reserves around the current mining areas such as the testing of the very high grade area that I mentioned earlier. Supporting the longer term vision for Seabee, we are also judiciously exploring the many targets within the very large And CB had recently acquired Tiger Tenements, aiming to bring more into our medium and long term resource pipeline. Move on to Slide 16, and I'll briefly discuss Tuna. Puna continued its steady production and remains well on track for guidance of 825 8,750,000 ounces of silver at an improved all in sustaining cost guidance of $15,550 an ounce. Q4 has been another strong quarter so far for the asset and we are really pleased with the team and their success in Argentina Despite a number of local headwinds, let's jump to Slide 17 to highlight some of the exploration initiatives that we progress through the quarter. We progressed exploration programs across the business in the Q3 and are preparing to release results from these efforts in the coming month. As you saw, resource development and extension drilling yielded a number of exciting results at Cakmatebe Extension As we eye additional growth of the ore body to complement the production profile already outlined in the last technical report back in Q1. Also in Turkey, we have been having some great success drilling at the Copper Hill target, which is our copper prospect Surprisingly, in the Black Sea region, an update on that project is expected by the end of the year. I've already discussed CB exploration. In Nevada, exploration progress both near mine and regionally, Drilling continues at Trenton Canyon and Buffalo Valley and near pit drilling at New Millennium is showing encouraging results. We have 6 rigs on-site are undertaking geophysical studies to grow our understanding of the opportunities. An update of these exploration wins is expected imminently And some proportion of the new Millennium drilling should be included in our next update of reserves and resources. Lastly, at Puna, we kicked off drilling for the first time since 2018. We're currently focusing on in pit and near mine targets and the team are really energized by some of the intercepts and grades that we've seen so far. The aim is obviously to grow the mine reserve and extend the current known life of the Chinchillas mine at Sipuna. And currently, we are The distal and regional targets that show promise delivering a much longer life at Puna. Drilling of some of the more regional targets around Chichiras and Piriquitas will begin in the coming months. So in summary, we plan to release exploration updates for Copper Hill, Seabee and Marigold in the next few months with the release of Puna next year. These exploration programs all aim to deliver a high return build out of our medium and longer term production profiles. Before I hand it over to Q and A, goodbye. It's been very gratifying being part of the team building up and transforming Alastair and then subsequently SSR. I'll leave the business in great hands with a fantastic management team, Bolstered by my role being split into EVP growth role, which John Evert is leading and the new EVP operations in ESG role. We have a fantastic business with huge potential. Both John and the new EVP ops are very accomplished and capable and I'm sure that they'll leverage off our successes So far and lead the business to bigger and broader achievements in the future. Thank you very much. Thank you, Rob. Great. Thanks, Stew, and thanks, Allison. I also just want to take the opportunity to recognize the significant contribution Stew has made to the business As he leaves all four operations in excellent shape and poised for a strong Q4 and beyond. We all wish him nothing but the Success for the future and note that Stew's replacement will be announced very shortly. Our business is in very strong position and we are moving forward at full stride into the last quarter. With all assets back to steady state, we expect to return to strong free cash flow And have a number of potentially positive catalysts ahead. We look forward to sharing these updates in a steady flow of news releases over the coming months and presenting a much stronger results when we speak again early next year. So with that, now going to turn the call over to the operator for questions. Thank you very much. Thank you, Ms. Our first question is from Ovais Habib with Scotiabank. Please go ahead. Thanks, operator. Hi, Rod and SSR team. Just a couple of questions from me. So at Marigold, Stu touched on the Wines, that's at Marigold. I believe these are towards the north Do you have enough met tests were completed around and in the North Pits to be comfortable going forward in dealing with the fines? And also is the high grade mostly located around the North West as well? Yes. So yes, to all of your questions. So yes, the higher grade came out of the North Pits. We have done the test work. And as I said in my talk, we've had a number of different people review those. And we don't believe that we have any problem with the heap leach and based on their experience from other sites, we expect that we'll eventually see this The gold. And as you can see, we've stacked quite a lot of gold. We did stack it quite late as well. So we're expecting this wave of gold to come out Over this quarter and into the next quarter. We have practically finished mining the fine material as well. And that's the mining of the fine material was ended in Q4? So was that It's ending imminently. We're almost at the end. Got it. And do you have other high grade areas within these pits that you're going to be targeting going into 2023? Not in the North pits. We finished those pits. They were only other small pits. It's as per the mine schedule of ours. Perfect. Okay. Thanks, Stu for that. And just at Choeppler, so in terms of Choeppler, are you now back At nameplate capacity at the sulfide plant, in terms of or is there a wrap up that we should expect in Q4? No, the software plant came up very well and came up quite quickly. In fact, I was extremely pleased Given my experience of starting these types of things up after a long shutdown, I'm not think that reflected the work that we did. I think you just need to remember we shut Everything down, so unfortunately, we had shut down the mining of the oxide mining works, exploration then we even shut down the infrastructure work in the district. So as we restarted, the software Came up well and really quickly. It's very stable and it's running very well. I couldn't expect better. We also had to restart mine operations. So that took a bit longer because we had to rally the troops. For obvious reasons, we didn't keep An idle, very large mining force workforce on-site. So we're getting them back to site and getting the mine ramp back up That took a little bit of time and that impacted the grade that we're feeding the plant and also delayed Us getting a bit of access up to Cakmaktepe to bring down some ounces there that we were planning to bring in. And we also added back in waiting for gold grade towards the end of the year. So that's Given that we were delayed for that period, that's pushed out as well. So we are mining in the pits. We are mining from the Cakmaktepe area And holding that down. The other thing that we did was we brought the sulfide plant back online given that's where we had the issue very carefully. We first started recirculating it and stacking and then once we were comfortable with it, we then brought the cyanide back on just to make sure that we didn't have any little hiccups As we were doing that, and as a result that's delayed some of the leaching out of the oxide plant as well. And just to give you a bit of perspective, We still haven't seen the cyanide and gold coming out since we started the leaching there. So that leaching cycle just takes a little while to restart. So again, we're very confident that we're in a very solid position and the price is running really well. It just takes it's just going to take a little bit of time for us to Get the oxide ore coming up and get the grades back up in the sulphide. So Stu, then and thanks for that Update as well. On Chaptec Tepe, in terms of accessing the oxide material, do we see the start back I see you guys start processing that material in Q1 of next year or this is kind of moving towards as you wrap up going towards the second half of the year? I think just to remember, I'll let you talk about in detail. There's 2 parts to Cakmaklupo. There's the old residual mine that we had up there that we produced gold from a couple of years ago that has some residual ounces that We had expected to bring into this quarter. And then there's the new Takamaktepe extension. So just not to confuse people because I think They're 2 different things. And one is a new project, which is E Mark for next year. One is a residual ounces that we're going to update in mind the last piece Thanks for the clarity on that, Rod. So, yes, I'm talking about the new CheckMate Cafe. So, can you give us a little bit more color on How things are progressing there? Yes. So progressing well. We've been doing the infrastructure work, so we have to move Some public roads. So we've constructed some overpasses so that we can separate our mine fleet From the our whole fleet from the public roads, we've been building some separate roads. We're in the process of Doing the preliminary work for relocating, we have to a telecommunications power, we have to move some power lines and some water lines. And So we're busy doing that work at the moment and that's progressing quite well. And our expectation has always been Light in 'twenty three for the start of it. Perfect. That's it for me guys. Thanks for taking my questions. The next question is from Cosmos Ju with CIBC. Please go ahead. Mr. Chu, your line is open. Sorry, I was muted. Hi, Rod. Thanks, Allison, and on the best, Stu. Maybe my first question is on the Marigold. I was going to ask about the sustainability of the higher grade being stacked, the 0.63 gram per tonne versus your 0 point 8 gram per tonne reserves. But it sounds like it's positively correlated the grade with the fines and the North pit. So Stu, as you mentioned, as you come to an end in terms of mining out the North Pit, should we see sort of the grade revert back to the mean Fairly soon. Yes, Cosmos, you're exactly right. We will revert to the main. Yes, that's what it's the name. So we will go back there. But we actually had a windfall in the oxide. So Sorry, in those north pits and they reconciled high. So we ended up with More material coming out of those bits than was in the reserves. So we're pretty happy with that. But Yes, those areas have finished now and we had expected to have higher grades through this period while we were treating them. Great. And then I might have missed it, but Stu, did you mention how much longer these fines are taking in terms of the leach cycle For the gold to come out, I know you're expecting it to come out in Q4 into 2023, but how much longer is it? I don't think we've actually quantified it in months because it's not a it doesn't come out necessarily in the steps. So it sort of Drags on with a long with a relatively long tail. I did also mention, one of the directives we got From I think it came from John Marrs and the experience from some of the other sites when they have the fine material was when you initially start the leaching To start at a much lower rate and saturate the pile first, so it doesn't mobilize the finer material within that and then call stratification and then Sort of make it take even longer to leach out. And so we've got 2 impacts in this quarter. We've got the impact of us Stacking more fine material plus, we've also started the leach cycle slower. So we're putting Less leach liquor on it for the 1st couple of weeks and then stepping it up. So it's a bit of a It's a bit hard for the exact weeks. And as you know, it depends given that we're coming towards the end of the year, we try to stack The narrowest parts of the heap leach and so that we can get it out by year end, but it's also a function of where on the pile of stacks. So It is a pretty difficult question. We have been doing work with Forte Dynamics as well, and doing quite a Which is work that's been going over the whole year, to put together 3-dimensional leach plans and a much higher fidelity of what was placed where exactly on the heaps To get a better prediction of what is coming off the heap. Yes. And I think the other thing I'd just say, The work that Sue has talked about just gives us a high level of confidence moving into this sort of next phase. But Having the assets stacked is a great position to be in. But having back end loaded plans, when things like this happen, it really doesn't give you any time And so I think we're a little bit of a consequence of that as well. So I just wanted to alleviate anyone's fears out there that Gold is not going to come. We backed ourselves to the end of the year. We got the gold up on the pads. The lead cycle has slower than we had anticipated in our models and we don't have time to catch it. It's really simply what's happened. Got it. Maybe moving on to Cherplir here. You might have answered this question as well, but as I work through the math, it's great to hear that You did 18,000 ounces in the month of October, but it sounds like from my math, you still need to increase that On average of about 16% in November December, is that a function of tonnage and grade? From Stew and Rod, your comments, it sounds like it is both, but I just want to confirm. Sorry, can you repeat that? We didn't quite understand the question. So you did 18,000 ounces. I think you need in October, you need 60,000 ounces to hit your guidance For Cherplar for the year, 60,000 ounces in Q4. So if I work out the math, you need to improve By about 16% from the 18,000 ounces in October. I'm just wondering if that improvement in November December on average Is based on tonnage, grade or both? I think, Stu, I think you did kind of mention that it might be both, but I just want to confirm. Yes. So Just triplets. Yes. So it's triplets. So we're seeing the oxide coming down a bit later And we're seeing the grades a bit lower as a result of the mine ramping up And some work we've had to do to try and rearrange the mine plan. It won't be tonnage That drives it. It'll be timing in a bit of grade. Yes. And I think, yes, because you probably I don't know, know, I think you came in a little bit later, but in the June discussion, that's okay. Just again, just to clarify, in the June discussion, we talked about The getting the mining contractor back on-site, getting the mining going has was a little bit slower than we anticipated and Getting that ramp up to access the high grade, which is we expect to sort of now start to come for the sulfides I'm talking about. We're moving down that direction. So all things are pointing to us meeting that restarted guidance. Got it. Thanks, Rod. I did come in a bit late. It took me 10 minutes to sign on. Maybe something on the financial front. Hopefully, I'm Not shooting myself in the foot again. I read something in the MD and A. I don't think it's a big deal, but you did mention that as a result of what happened at Tripler, Not in compliance with the term loan covenants. You don't have a lot to do on that, but just Want to confirm is that should we be concerned? So, no, I wouldn't be concerned Cosmos. But The fact of the matter is that's where we were at the end of the quarter and so we felt that from a disclosure perspective it was important to inform everybody. We have continued to make payments on the loan as they've come due even during the closure. And as I mentioned in my comments Duane, I'm sorry if you missed this as well. But we do anticipate actually being able to close out that loan by the end of next year. Great. And then, Allison, since I have you here, the cash cost The all in sustaining costs in the quarter was impacted by $31,100,000 sort of costs related to the Tripler suspension. I just want to make sure, are there any costs that we should be aware of that's bleeding into Q4? Are these I would imagine these are one time costs. I just want to make sure that none of these one time costs are bleeding into Q4. It doesn't sound like it since it's already restarted, but I just want to confirm. So your assumption is correct. There is none of those costs are going to bleed into Q4 Cosmos, those were all one time costs specifically related to the closure and standby type costs for labor and other things so that we could ramp up as quickly as possible once we got the okay to reopen. Great. And then maybe one last question, this might be a difficult question, but I might ask you anyways. Rod, When you restarted, when you got the permits back on September 22, restarted Truffler, at that point in time, did you consider Updating guidance? And if you did, what has changed between then and now? That's a good question, Koss. Look, I think when we did the Q2 results call, we said we're going to do everything we And to call back the lost time and lost production. And we had a plan as we always do. There's A few levers that we had in the business to help us to try to chase that as a goal. As it transpired, you know, with the then the clarity around the slower leaching at Marigold, The impacts of the gold to silver ratio at Puna, and then some of the other initiatives that we had around Chasing those residual answers at Cakmaktepe, we just don't have the time to be able to do it. Unfortunately, we did a lot of things try to capture it, but chasing the high grade CB that Stew mentioned, we just haven't been able to catch it. So No, it wasn't considered. We want to be able to see how the operations were traveling, so we could have a more accurate Representation, if we're going to recur guidance, obviously, we want to be able to hit it. So it wasn't the appropriate timing. But look, we did everything we could. It's disappointing to us all that we couldn't capture it. If for instance, Marigold hadn't Performed in this last quarter in terms of the gold production, then we probably have been in a good position, but we're not. So that's where we are. But look, I think The business fundamentally is very strong. Coming out of this into the Q4, which is going to be around a 200,000 ounce Consolidated view of the business, moving into a really good 2023 And all the good things that come with that with free cash flow and other things, we're in good shape. But we've had a bump in the road and now we're looking forward. Great. Thanks, Rod, and perfectly understand. And once again, thanks for answering my questions and all the best, Stu. Thanks. Good morning, Cosmos. Thank you. This concludes the question and answer session. I'd like to turn the conference back over to Mr. Antalff for any closing remarks. Great. Thanks, everyone. Thanks for joining us today. And as we mentioned, we're forward to a much more positive full year results in early next year and closing this year off In a very strong position to set us up for what will be a great 2023. So with that, Good day to you all and thanks for joining us. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant