United States Antimony (UAMY) 15 Nov 182018 Q3 Earnings call transcript

Good day. And welcome to the United States Antimony Corporation Conference Call. Today’s conference is being recorded.

Before we begin our presentation, I would like to advise you that today’s call will include forward-looking statements within the meaning of the federal securities laws.

Our presentation will include statements regarding our projections, estimates, expectations, beliefs, and assumptions. relate other will and our statements production. forward-looking to, things, among revenues These qualified that form by important actual statements of forth by These are Factors Risk factors current including factors differ section XX-Q, from in applicable. the statements, XXXX results materially could our those forward-looking reflected XX-K the our those set and to our cause if in of also industry terms used include be glossaries certain today’s reports call. These may conference that and releases disclaimer is the included in effort full the is The statements for press in forward-looking disclaimer call. our this duration of At this the Mr. time, I over turn would like conference to to John Lawrence. go sir. Please ahead,

Welcome XX-Q And and this search gentlemen. ladies and Yahoo! our XX-Q. the other and pick QX the unfortunately, not engines filing of did constitutes the up

our And Web as you. over in morning will CFO, it turn with published with I’ll Dan over this usual. Parks, to our Dan? go who site was it XX-Q that, the However,

the and Company Mexico land the in and operations for United to equipment equipment. equipment costs had the XXXX, We in plant Inc. sellers antimony of Lakes antimony and we assist which quarter. and subsidiary events the We and both with a Great Holding transportation during Chemical disassemble Reynosa, States. plans John. a financial Under the an capital sellers. sellers, paid Mexico. agreement are acquired located of salvage The to plant third and U.S. transport Company the closed our includes interest we Lanxess the by the significant usable $X,XXX,XXX and use share Thanks, XX, in who salvage Corporation August agreement, were On member in

on X, Mexican the XXXX the paid calls as assessment with The a event, sell tax for Mexico no finding Reynosa Company representatives each On in of received this not to XXXX. and quarter November the included agreement on will we and property subsequent our XXXX payments X, settled resolve Xth which been of $XXX,XXX January our $XXX,XXX, $XXX,XXX X, of payment acquired tax fourth November December in a to $XXX,XXX payment XXXX on Xth transaction us. be in but quarter for $XXX,XXX. has due. reflected results, more also agreed $XXX,XXX the activity. down third our XXXX a of for of from This We tax February of two We and in

the XXXX, quarter XXXX. of the For and tax we income $X,XXX,XXX. recognized a our assessment Mexican third of decommissioning $X,XXX,XXX includes of of antimony the receipt income Reynosa, income the for with plant third revenues Mexico. in The quarter for settlement net recorded of the $XXX,XXX the We of net of associated of $X,XXX,XXX sales

quarter of a $X,XXX,XXX. net of third the For we sales of $XXX,XXX reported loss XXXX, on

supplier. compared $XX,XXX For and income in was XXXX, by was respectively for the had XXXX. our materials North acquisition, the in of on the an We and operating to ended gain offset the $XX,XXX September companywide EBITDA raw $X,XXX,XXX received three due a American third XX, EBITDA of was which the $X,XXX,XXX same $X,XXX,XXX plant the and a which primarily Reynosa negative our from nine decrease XXXX, quarter months to since period

North XXXX. the our for from We supply interruptions supplier. we anticipate During of nine resume American from quantities remainder of that endured months the first North XXXX, our normal supplier supply American will

recovery our plant raw supply directing and material be Mexico. increase completing of from in the resources will We to metals precious

$X.XX material XXX,XXX of by antimony supplier from American for compared we September pounds to nine North antimony the XXXX. three and testing ended respectively and during three of XXX,XXX will Puerto completion the our gold, the leach during XXX,XXX expedite XXXX, per Blanco, Juarez and same that the months sold at September to $X.XX commence three and regards XX, and pounds for months which decreased $X,XXX,XXX and As antimony Los XX, nine discoveries was to of approximately X,XXX,XXX caustic metals, Juarez four ended ended and nine $X.XX the XX, from silver average Precious is XXXX. plant three Raw XXXX schedule technical from Test of XXXX. September the of periods flotation processing. price $X.XX for decrease we the -- nine pilot to had successful in The will of increase approximately pound and start leech pounds XXXX to third did the cyanide material compared ended an recovery to with for raw we and XX,XXX the Mexico a at the of We months quarter XX, on metals include but antimony of in Los quarter XXXX. months September sales see pounds XX, nine XXXX. months approximately precious of concentrates for expect and ended production increase switching September XX,XXX was the

XXXX, respectively $XXX,XXX was EBITDA $XXX,XXX, precious XXXX. the and For of metals to the months period the XX, September $XX,XXX compared nine from $XX,XXX same and three and for ended

XX, of XXXX. compared For of ended depreciation net X,XXX months. X,XXX net XX,XXX and X,XXX nine XXXX of of the third months a XXXX, tons nine quarter to Bear September to for three after and of and sold the or for XX.X% income and quarter X,XXX XX.X% the three or tons the XXX $XX,XXX after BRZ in XX,XXX $XX,XXX third or XXX,XXX XXXX, River in income periods compared depreciation the tons BRZ for of realized tons months the same Zeolite, up in of zeolite

XX, $XXX,XXX $XXX,XXX after net income $XXX,XXX $XXX,XXX EBITDA the of ended For of same nine to for the $XXX,XXX three realized after and depreciation depreciation September months months ended $XXX,XXX in periods XXXX for income nine BRZ realized and a XX, XXXX. the BRZ of compared of September for $XXX,XXX XXXX, of net compared periods to a $XXX,XXX same XXXX. an of the and

so will we enable Preston less incur to us work store periods which costs, net will which overtime of the our raise over in Idaho, we finished at process plant warehouse are income. our slower We building a do believe that product in and

We zeolite areas all you, expect to John. Back growth in of sales.

Reynosa John progress Leo the are Leo, just heading the Gustavsen, with and liquidation give Jackson transportation Leo and and dismantling the could a plant, now. quick oversight is right expectations? up of you the Dallas Okay, us us inventory. from of of

Sure. dismantling Reynosa equipment We began furnished contracted of there do the and dismantling, in We to also for the local a removing. company plant. the the freight with

dismantling I actually there to to of by ahead have in be do -- should plant. finished we We XXXX. of end of our the target have think -- schedule the we And with everything the we're is January

the going? where on equipment is of comment just you can Leo, some

Sure.

sent of we to the Mexico. between installed in to Madero, the between plant it’s called Blanco Puerto the of State Coahuila. and the State of far equipment -- have Guanajuato the cities in -- Coahuila are So furnace Torreon, furnaces in And also Saltillo

send operation, Thompson John, are Falls. some to equipment We also in to your going

and processed what in a in also that of processing have I’ll then more the we smelter his consisted ask of he of Leo, of? you to we’re quick Madero? process And what for of expects some And synopsis I’ll the on comment at Russell just inventory. ask

-- oxide, good I’m of inventories say inherited great about I When We oxide. antimony talking fairly oxide. oxide, actually Okay.

it the of sodium a this me amount say some to pound Madero of specific XX%. grade truckload I -- when is to be still Russell content antimony gone some ran are a of is is material two useful of is furnaces XX% -- low called for lot with and And loads I’m are. it truckloads, And values that and XX,XXX but slag want say more at antimony fairly some, go to antimony oxide. lesser or Also where some at Russell in to a but trailer low talking is high in this that… of to us the you converting least actually -- some we, least for when I it, do has there to going John, to about

I it. comment steel now LRFs more just that And No, Russ, installing plans plan? two all for you and your on on could stainless comment right think your covers

Okay.

we pouring John second and designed and concrete LRF have for We the are that have for been we LRF, the floor, using. installed one

and work then two, to LRFs We’re two continuing I’ve to we the pour there’s and poured what Gus we’re And about than and I shouldn’t understand that waiting more weeks we just already Leo it have to that. at got have Reynosa. for from five done. least need double already And and coming for gas ready, at maybe natural more manifold the take

of with two However, Leo that bag John, outs stainless well and and house, to… and stainless or converting mild ducting iron want next Gus quite me already using cooling and for cover, LRFs Does steel. you our a shipped steel existing possibly to have bit as clean

point, facility Petroleum of few XX pounds And we just and of point, And as And quite Yes, the we of saw slowdown event North at we that there. that to equipment end, the of the And production or installing to that the Texas covers furnaces background, that We've about this La facility. have it running Wadley. our are be new concentrating years year originally compressors at we we’re Occidental output and plant oxide. that realized per had Mexican this from course, other a Porte, feed don't efforts ago. production offset at going at LRF million Russ. our increase in to are of to but American one to Reynosa increasing

and we hopes on have begun there. have Guadalupe Secondly, we production production high at

that bringing Puerto I’d feet Friday guess more equipment. for very, is advantage we��re in to mentioned this about immediate that second to tailings Soyatal from that be Blanco. one include assets Queretaro. moving it's Montana would X huge equipment LRFs do are plant There’ll but And facility. acres thereafter. leach is perfecting of Reynosa, Russell the to briefly or big projects the where the looking of at end, And it’s state Los be that pond, equipment there's about our the And and stainless two about are has deep. very we been The hazard it's Juarez And at and invaluable And that an trucks the third or X as the that high, from steel. five half providing the Reynosa XX it's the on that Very completing license, explosives built mine of cyanide we’re plan. other

and present a forth. in the primary At we’re over the so wiring we’re would itself, be building providing roof in time, we’re bringing third everything. Secondly, voltage

we assays and assay of over total is to Matt commercial place tons start during opposed So per XXX commercial mill phase fire already we matter can and XXXX. in of be to With event have biggest year, zeolite the hope to to lab, shakedown on well would we And as go And I’m we test that, very that of expand day during Puerto and installation report Matt? expect we keep that, a party lab, the time With that by operating. by as end going QX them, The the sometime of the now. Part QX And we so to Keane, going the and that most production at the a the production money profits sales. for who will in time that to be instillation typical to end it from that XXXX. include ahead within got expect will to go analytic made Blanco. this a of a this going we've ahead the which we that be period. antimony takes is sales, critical as and right is that it's our We plan reached would need day. changes capacity to to third feel going hours. turn

time of full, through little this fall and production year of source our as the customer Thanks, customers, active the And end very area. a see be to of their because seems John. But schedules the is said right inventories good is antimony as And sales a as down. oxide and strong, we base, also far the my production goes, a there for as John domestic demand new got seems, real for very metal. to slowdown keep we’ve companies real trying antimony year. Normally, far solid. there our Like now

problem seeing not any we’re So there.

of However, blindsided we Xst quite a the get of in January. usually right trying people to few do by put orders inventories on

haven’t yet, I seen going happen to. that what's but So

production X% the year, As by their far but actually off months area to the nine China’s as now seem be inventory, right -- the inventories about world’s for of strong. China’s was

little is have a all the the end predicting and £X.XX. I fall they're current now year. So price That’s off The the to for antimony. ton, Rotterdam $X,XXX for metric which bit price antimony between per to equals of metal

at said every we grow Dan is as in antimony sector, at his is BRZ expecting that my and far As was points. of $X.XX talk the concerned, one of very to end are

this and solid in real and they’ve but is customer antimony. still And increased base double this business Also, any have of many that their year well customers looking time very most slowdown few of Our cases, in strong their here. normally take us it's a year. seen do We’ve in we actually a with business, our not cases, strong.

well. customer customers. we said, especially year, to We top water with them filtration, And material, Dan expect real and that’s feed going that had Our animal of we control. course, from potentially the next this And waste do ag, purification, the think are lot time strong. all like we I've real still conversions to of new markets of seem the grow the attraction a water year, those grow base have markets order

it. that’s So

will filter appreciate seen several surge in will a they media it back Bear in water China, absolutely filtration we is is last we’re like in out is is remark third problem. just remove to in before the India, solution claim River over I’ll they questions market huge and actually on bacteria. go we’re One out and filtering. ahead with advantage recently, the that company avenues, And it that expansion, fought going of coming but product And seeing a have Matt, Zeolite, zeolite is we from and places to all and by rapid to we countries. for be think is XX.X% questions it. interest turn that we’ve the the a earth war you a the world most that, to different with of go The water, prime bacteria answers. one filter which remove Will,

Menzel ahead. Instructions] with go take our Wealth. Please from And question Mark we’ll [Operator first Sunrise

of mentioned had tons a I capacity Were day. questions, you you XXX about Juarez? couple talking of a Los

Correct, yes.

like down looks what about $XXX a dirt talking ton pay we're And there?

every Gross of value, varies it price yes, metals. with the day and

things area quickly that if a or that’s you good year, So really increase XX is capacity? successful, start that day How there. looking XX,XXX can million a down

after that think mill closer $XX from us step Well, would looked we've be body. per the ton engineering XXX XXX,XXX going at to second per the or to at and And it to is a tons. it to mill I ton that environmental behoove an day point, have approximately ore in XXX transportation. $XX the save us But the standpoint would

result day, XXX ton. on we And a perhaps put perhaps at a that issue that then So in we ton for and day. we words, crushing the In be and and steps tons or with tons within of there profitability I other would a couple will And facility mill year good then two, And big be in X,XXX XXX a permit think go incremental ball a the mills, we the that per would very XXX stages. and is permitting. the would assume operation add area. go it looked could for I a we

at business. your smell XXX million I capacity do in sense. to it’s XX whatever a But would would me financial seem business. said, day, Okay, It million to make can to it’s you tons Like revenues. XX expedite your I

XXX companies. absolutely step ton to reeling similar thing been In the other thing on no to want this years by the made be XXX want fatal That’s try forth in so very mill done go a We that ton on. words, and cash one we correct. that’s as is on we’ve over cautious to to basis. other and so The we the

get are to you valuable saying amounts various Stepping I of left quite Reynosa, that they Are that us? oxides behind back it. to didn’t

correct. that’s Yes,

$XX Can mean us Does the $XX,XXX company number? this to or the you million? give

that. Mark, think gross talking I it a processing of net perhaps a conservatively, we’re about was before $X.X million, value perhaps half

you left So equipment? on and $XXX,XXX for the after million Maybe sale of to in property. residue the done for of the million you received said $X.X use cash and the all $X.X all it’s behind cleanup,

in That biggest The terms of the is actually is correct equipment, asset funds. Mark.

couple very a, easily be furnace. million LRF, build for stainless can dollars we a steel to us talking of For all instance, per

an transaction. may Please It’s another. I have amazing sir,

Okay, at wonderful updates, okay, in dilution. Company sense looks And the this. involve always all was monthly see would And, you had and your potential quite looking not Monday truly right. In the transactions financial that I it that that honestly for transformational there Company.

in So last update was Monday that the missing. sentence

some you’re So that done company looking there things are potential out still are or transactions, we and at? finished there on benefiting

to little up. a one grade wraps the least is what antimony we Gus and selling the in the provided rest hand per sulfur. is by almost Chinese. contained background And transaction the we of have bit we’re have antimony $XX per major of subject involves $X -- more, have per a concentrates. the trisulfide of pound, was currently The that up sold the making under about real expect. at meeting a per I’m that at not and trisulfide of still come -- they disclose get production of anyway, successfully using pound trisulfide premium neighborhood antimony And pound There’s And selling But of The sort here. mentioned to with method other pound. it’s plus us at exclusively $XX and It's antimony. to it's the at

So the that of one pound, products company to is contained real little antimony a be close $XX those worth could it's a and builder.

in for primers armaments… This what’s used is

in primer, rockets. as center-fire used well igniter as as it's cartridges Yes, the all in

business have on? that So you’re wraps this is the area under that may potentially transaction you some

U.S. military Correct. which than called is specification disclose XXX have what for A, I the we mill as it, product. that made other is can't spec

ahead. with our take from question we’ll [Demetrius And [indiscernible]. Instructions] go Mathis] next Please [Operator

lot last of Mark would you be transactions in a John, guys have was months, and just few news to I what good that the too good reiterate the had true, think. said I

just the though margin a had going it in due the -- good -- a even one-time down and business? this at where event total came very quarter in we So to the looking profit profit what on time zeolite, or wise, -- was over margin the substantially production zeolite

It's zeolite actually had bags their the complicated paper one factor But to in what bags -- of the just explanation. production our in a cardboard of fairly -- one two that customers number it a they led but is over good not fact, a away the box. they’re business. pool believe actually But And it’s doubled. And to year news, do to because we had were going with during in spa been and the that. switched taking

S. And of, on had of to short and U. weigh bagging we period the that bagging un and we So two, it renown overtime them kept not conveyers us about line unable in the for our four in a of lot our we for us production which one in in over third, automatic our to during And repairing other IT a capital think required the a the and manually manpower a and and and was a lost crusher. in basically us expenditure, that period our increased a seasonal our as two to miners factory, focused could advantage them no had was took from opposed automatic installation. get weeks months. -- down electronics seal of we failure crusher Number cone so provide time cost. it our fill with to down it forth. And kept footing cone at period we I And bags, some

So, a of things now. we’re preventive whole bunch doing

in go box, will season produce during that an immediately. mentioned warehouse a speak, that the having building we’re out to off to so and First, bag the Dan inventory

XX,XXX parallel if crushed we’re other a rock time. making Secondly, third, the to on we or a we expand is use that at primary them so providing order down And of bagging one use we’re provide can of the as line, both stockpile tons. provisions the of

applications going to of of was talking inventory be on [Technical growth Do forward? I Have or access Matt zeolite added business since is just Difficulty] new any you I we know last continued And new have expected customers we about two. those using year am an gotten customers? extra inventory new how that defined? zeolite, to

Demetrius, Actually, both. we have

a We paradox the selling to for XXX new recently. out have granules customers But here to the have applications. report new and product call what is and tons of a increase diligently quite some product we’re we biggest able here some there. minus rock bit the move it’s call XXxXX, product. XX is every granule. a And And XX% goes about we the balance Matt’s And to what in, sales the trying for yes, and to coming we been

market. We also have a growing Canadian

move Can the if you mesh you more the XX on the or? on lower price --

advantage it and We of trying, to great doesn’t seem be any to Demetrius, us.

rid the ways business it’s to some Just to all going discounted it, would it. we remedy where go there of issue continuing to basically be it concrete several get One back are and of to take have of to be it. could but they

have on primarily animal more We poultry. person feed, working another

we’re that So our -- trying but really it have sales it impact and we doesn’t much. locally, discounted

point And you’re look been to to sending side. to start up? was -- Wadley the past. where you've and year-over-year more told finally you're seeing you it And Madero in was sales was queue. to the to know then the the and I to the you're trucks working going finally an are up you’re But that put really I doesn’t we Wadley, know that point the -- that getting production amp compressor When you’ve from getting number over in -- going in. us or numbers like antimony

[indiscernible], that increase like we’re Russell. a where all, mountain be to will Reynosa production truck in pretty that compressor And of and slightly. rapidly. just newer compressor to The ore from right this with -- getting we be for out we year the beginning as the the that of the the mill the metric we’re we’re XX transporting ready slow. to expect bought goes crushed it looks going of to with down now, truck a it's every morning, put accelerating ton before truck to of was Monday. first it fairly But Well, And

underground units Secondly, a grade we’re the mill. hole reworking one open tunnel will the up of go that our of dump to lower bunch load access to and

that’s stream. on So

are over basically Guadalupe at the doing We same right thing now.

the he’s be some from start that then. by So Leo end to said seeing should January. know production going increasing we numbers done on Reynosa, of And How going more stuff that obviously it I is more you much expense to had money it takes -- move How this going take? to expense to all is the around. the of know much Mexico I

XXX,XXX bit We’re a that month a is of at some spending no. about transportation, -- include little doesn’t more, -- Leo, the

So Leo, a here, I XXX,XXX. would couple estimate me -- help of hundred,

at Yes, most…

And to year on is mentioned -- got need you made. you you payments you get round ever your that us, equipment? that -- some if some get to that next Could Mark you back debt [Technical all that Could -- some equipment of you equipment really launch dollar I of asset Difficulty] the of do be know that value.

U.S. borrow a for hard money Very to equipment… company Mexican for

LRFs? or Even though steel it’s stainless

whole Yes. There a loan, But Demetrius, least are frankly of laws, a forth. at need point. with don't and we going, what this at so bunch we have through customs

And any up, cash enough -- flow that’s then make Juarez going need as we’re did feel ramps loan offering? plant dilutive sure just that to we or pilot provide Los a to that don't you confident

materials raw very it antimony And of and major is that lost at look I profitably the was the we our was supply problem. reason of down XX% our simply. Canadian roughly

on more by expect that next back month. replacing come we stream and them to it We’re and increasing

us. that's be Mexican on So of Wadley, going profit Soyatal Guadalupe Canadian. and to to production And the top from be returning the will additional margin

So standard we major look profit at that as center. a

us antimony profit $XXX,XXX say Bear to thirdly, from be neighborhood number as high we very will is as $XX, off silver, to program. advent production from continue And say look might $X could contained spin a we profitable And trisulfide, $XX which of year. producing course of cash at a in Los into very, the antimony be fourth Juarez. profit a a go to Secondly, a $XXX,XXX gold of to be And per will depreciation of the to be to pound that incredible. plus antimony drilling of assist production to some River expect pound possibly that diverted I

we a of see that I don't big at point. this is. picture just deposit get loan So can reason how this No, any for better a

would remember the No, to I don’t you I guys am loan. that ask hearing a on to I then need the it down why just year you back of any think first sending at tech. they you glad lastly, when product the And beginning clarified I exactly weren’t start and it was supposed that you months. it few or month they’re a be May so? product going start supposed by to again sending was was only the really really for supposed feel a And confident to in up, -- did. it never How do to

they've always and we've delays in and business XXX%. come the done We’ve less through had years, with them for past XX production more or

May a send ramp actually it, no they had XX zero. to where us schedule in October can tend And tons had you production you can Demetrius, and see and see only tons up.

course. they’ve of the always But Now that’s a John projection come past. through in like said,

-- to hear trying guys to this and you that sure in changed any hiccups -- is just this if a hasn’t relationship way with they’ve got have trying some just through? am them make from worked way their and I they

a have called and [indiscernible] furnace rewinding it of at went cost down the $XX they Demetrius, million. Basically, for [Kitsap] one

I remember the Well, you I will… in call. mentioned conference previous that

watched Canadian satisfied number base me I've said and we've go had we is to do The John to that through just don't it evident hit did to and that of Mexico. it's get what the And normally customer but supply John got a trying that XX% down, really incredibly hard and base. keep I've customer maintain try And Russell just it. to we show

to I the year, that, absolutely numbers, even last huge for feel. if like they're what So we've it's done equal success

were Yes, numbers also, but I equal from thought that's Mexico where… the

but quarter. that's One thing liquidate it right substantial to may this the we wasn't evident a not Mexican was objective. that get is now, on that of inventory quarter done it We sitting production hope this all last it we're

Already, you sure of a John, were I'm or roughly containing Wadley. seeing a it couple truck plain. months of And antimony seeing this tons but every every only truck was not Monday XX,XXX we ago, month. from said a weeks contained we're two even

So least that by than double double. more and up or equal has gone not production is already at

And going sure and I'm going was consistency? back to is trying we prior? weekly it's to it same be just going that forward make see to the where to fall that

five as a this we morning, to days may have Demetrius, four in Actually, days. four this week, of truck

deferred this Well, than I very know you've protecting story am dilution, good shareholders in to together I've not have ever. little the terms diluting of of thesis and funds, quicker the done now excited is a stronger that you very a steward in more by -- I with to And them. things been come and good story this trying John stewardship but are sometimes shareholders terms see

that's and everyone think onboard. Appreciate Demetrius, I thinks what it,

Instructions] investor. we'll our private Please question [Operator go take And a [David from Rosenfield], who's next ahead.

what idea advocate it going that's say company. the the help foresee a on line in I the raw about to can't material know bottom little the have always I'm But can -- get touch I just till out. wanted and you and bit you gold about of how you you some silver just to and the you that future. I'd production,

on range. high factor Madero. recovery depending a Well, the is on silver, antimony, with and gold rock, the And caustic to and current the that has leach, with, one the the in of then Russell number at pouring come up is the that. $XXX, we've metallurgy on been we very But call price start basis $XXX over up trial a

are costs it’s Secondly, open and low. mining very pit

really silver. Third something of XX%. because getting And next the the only or most cost somewhat of and XX% an leach disclosed, is at the was we here’s the of is this enigma. were the more has cyanide about most not, XX% haven’t than recovery And the antimony, of But only of item tailings. the We a to is straightforward the that milling we’re mill. been that getting often it it’s And gold been the enigma.

be quarters did we We of quarter X.XX, ton. But ton theory assay, of we there. amount Why? were we’re would we we one gold. And gold holes a re-assayed rogue than have no-see-um it what the instance words, had of drilling three thinking every program, very instances, fraction, predicating And had a could of better half ounces had like in well a that XXX that the one So and it’s we it about disseminated. is instead XXX in is quarters identify would an it, three further figured there size. gold X.XXX and ounces microns gold. it idea, at be three may our many microscopic be back, some of many, the for gold. gold that this in one the another ounce. concentrates instead just closer ounces or X per half fortify that a another have much point per to several ounce had a And odd ounce, to we’ve X.X we in that at of shallow size, theory ton going that current and we've Carlin trend, silver. for sub-micron to we was a X of was other But of of And and In Nevada is, could grain ounces, XX every ounce

have the surprise had we could So amount sequence homogenous although, we to to mineralization the be as degree, it where the ore a gold may is a and gold second value. body, of closer a host real some

bucks say when conservative we We’re standpoint looking at it from plus. a XXX

mind just I it’s over going Would you cyanide. process know this Correct? -- leach using how

Correct.

get will that any return much it other could so use. process Correct? that And we a higher

were that figuring at Well, bonanza, catching But But, real we can gold. the in And that's gold that explain why nevertheless, least catching XX% may flotation. is it's the we’re counting of values, not it’s here of on a it if at not thing gold it. be we looking the David we’re happened. real

the I to leach that Correct the ponds correct with Is I go thought am back or me if plan wrong. process. your no? tailing was through

percent seeing No, for it after to XXX% and very cyanide, the and incoming mill over gold -- recoveries with recovery deposit. mined will tests that’s be the ton it And is concentrate we’re product the usual, but of of tons the is what sodium sampling issue, we and over with then have a and the where of to of will one flotation to-date. of the to high. and about And well it's XXX rock be impossible we major test will we’re a us enough going remove evaded has we’ve fact in XX,XXX just a that. tailings mixed But be about taking take as year quarter already Russell milling gold

and David, almost that’ll residue the the in and will collected, de-source ship be carbon So then XXX%. carbon as the we

So the astronomical of to return be possibly going like feel you is it?

on it don't issue. counting we nevertheless Not explain the -- but can’t

that tailings you’re from guess the it’s go, over with, whereas I going let right? just because previous at the mining of to that all so to And there, reprocess

terrific it’s of we’re our antimony Yes, small surface what and David, it’s was either. near recovery a fraction at, where not looking

probably As little bit higher expect recovery we a we and silver. the lower, of get antimony

actually it leach at all? -- that will silver So the won’t reclamation involve

complete. XX% typically it grab and little part we’re the in gold, the very to the are is The that as lower of slower the fast good to and little another silver we it Yes, recovery the getting of gold also very as XX% silver, will. tailings. and is recovery. going Not bit is a silver losing And

plant the going Will that further main that’s product will take to the the States? United or So out refining cyanide come is up straight processed. to [indiscernible] go for that you in

it’s Blanco very to It the pure a be latter. be will product. Puerto Falls, going from Correct very Thomson return, a it’s to directly fast going to go because and

good. really sounds that Well,

hope. good for I a looking everybody, we’re So for XXXX really

Yes.

stock so to with much. higher Well, to enjoy right. and price big We thank And look year you. out Thank this work you everything you. forward

David. Thanks,

Tim go we’ll ahead. And with Please question Hasara our Capital. next Kennedy take from

So just the balance or in that? curious go to Great on form that the shape sheet the this equipment Reynosa. Will in transaction with of received that you some value into future, in Lakes

Dan, that one. let you I‘ll Actually -- handle

frowns how much generally how tricky a GAAP, you basis except the first principals and capitalize of because limit on fair be little we accepted to at. value on it, going to It’s accounted we use some market something capitalize have on to it value which determine to

we with that have discussion up come and up based then on some fair come be But to market the compare probably wage some don’t to evaluation acceptable So try we’ll our method. they transpiration they cost that would will to with think with been that value. an and -- auditors has

aren’t bit on so furnaces, steel the forth. that right will And things so stainless away, so capitalize and like we quite of a the installed that

that see up sheet lot of we’ll so will show be not on the And balance a expensed. and

Any tax implication that? to

in thought of of most year, net U.S. use over going lot up course look of haven’t can’t We are XXXX, to this -- got Mexico. forward I doesn’t XXXX, well, we just capitalize, operating sure to -- is what that And our we most losses -- if that I something. were tax affect through A probably then guess carried be these And costs of to like in going capitalized skip that going return. going XXXX use our probably we’re that. to

return. they those costs are U.S. of lot capitalized affect a So won’t our tax be so to going

you mentioned clarification, And then China. exclusively -- comments made on think by you I the the just trisulfide provided John a

else just Is were curious that. product you the bought that -- someone primary from supplier correct? that. Was they that Just clarify can of from world

When China. late the was XXs. in of the started supplier biggest the business, Historically, antimony was we back that antimony Bolivia. And

And supply mine is the of have the XX% gone And as such is antimony has called supply the think that material right Chinese they developed Xikuangshan the of grade Russia, getting The time, basis. up for XX% very they happened And now looks is future. mines at the But worldwide various mine one now antimony. basically, mine is steady antimony. from the Hunan other the about very so And down, they’re getting situation But deeper. years tight raw going And some is depleted. Russian the currently Australia in Province. and it’s world importing was a on countries like about it their sole considered Mexico their of what’s Hunan the in of that Wadley countries, largest drilling at operating world. as they’re demand significant Secondly, changing, we're point, a the I in a producer.

from buy trisulfide? still government U.S. China the the Does

No, -- and not the trisulfide? at the

Yes.

Yes, they do. enough, Chinese months. not three for And strangely have offered trisulfide the

leads next. that me on And the

the you not? Just that an update potentially -- or any would benefit situation tariff on

I’m me thought correct it here. would. wrong think But We I if -- and

first tariff, think what happened I the that Yuan. the on alleged XX% they devalued

in necessarily any for I trisulfide did be to is would fact supplying would benefit except yet, that the if fact seen think not that or past, benefit haven’t any really the they the I that just China U.S. you a the presume? So

seeing Yes. consumers a price we’re right static It’s is lot seeing -- of inquiring because now. strange, production. with we’re But a Matt lot of basically for

What do you mean consumers?

truckload of purchasers tri-oxide small and the and or especially users that fire consumers Special -- they're return. antimony and

For what purpose…

For fire return…

Instructions]. [Operator

lot. a interest. Appreciate your thanks Gentlemen,

does your This you participation. conclude today’s for program. Thank

wonderful You at and time, day. may disconnect a have any