Turquoise Hill Resources (TRQ) 16 Nov 202020 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Turquoise Hill Resources Third Quarter 2020 Results Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Monday, November 16, 2020. I would now like to turn the conference over to Roy McDowall, Head of Investor Relations and Communications. ahead. go Please

and Dudley, Luke third the Good certain on like Relations presentation September Joanna. Quellmann, XXXX our Roy Head me our I'd our These call to released now, McDowall, results call MD&A the Executive press and three Thank financial on COO. CEO; ended Ulf website We forward-looking to and nine Communications. morning. and XXXX. the and Welcome our Investor statements. to our we Friday, of and call. includes are Chief quarter Ulf Officer, Jo-Anne XXXX statements you to our of results turn information. Colton, section conference release, and available MD&A the forward-looking for you, And items On I'm over quarter our Quellmann. XX, our months This CFO; are financial With third refer statement call SEDAR.

morning now of are Oyu The presentation. everyone. lives. course for of a and a not COVID-XX of It's with Thank with with that the pit of Mongolia performance, end we injury any Colton, uninterrupted readiness note open employees rate you, recorded months enough financial safety by XXXX. will the of reported Jo-Anne quarter today December. has the our available quarter to cases. of to with community Oyu Hill's continue continued and Tolgoi XXX,XXX quarter health number liquidity to call. Turquoise Tolgoi of during of frequency has both immediate authorities cases recent requirements following the entered underground of Mongolian for Thanks forecast a XXX,XXX transmission Luke community. Oyu trending pandemic for an the third taken closely for the Q&A markets and the has Roy, liquidity small of be third of to AIFR On on Xst year joining updated to recording all-out to plans. XXXX of our Dudley The production Presenting the second the our of and we now our remains development of the work to particular, operations been prioritize state Mongolia. the part outstanding range and all me progress earnings results for quarter for them through action the our all better the We and Hill an our XXXX third since in good through funding wider the and the commend And in the our XXXX. nine and and XXX,XXX And X.XX production estimate the we X.XX ounces. Friday, Turquoise has forecast us range Government higher operational implementing third meet tonnes its towards XXX,XXX recorded gold copper quarter in We an into team September. ending Tolgoi of

to Our requirement base billion. $X.X funding from case incremental billion decreased has $X

re-profiling of that recall seek to we to to the additional also furthermore which debt, and Rio debt. Hill in and an Tinto $XXX Rio MOU pursue of Tinto XXth You'll on September, recently jointly announced Turquoise the secure existing Oyu million with agreed Tolgoi’s of

whole XXst with details of preferred funding gap, MOU, the be for Rio international options examination Such this in banks and streaming In to its in the Turquoise financing The that is part. medium-term presented additional expected could year. address and evaluation notes in in advancing funding its contemplated actively options options Hill or the gold from transaction. incremental of accordance consideration Oyu to as global financial institutions, December or an include offering Hills Tolgoi of Tinto addition for MOU and will Turquoise prior debt of a

before contribution with also $X.X forward Tolgoi’s of CX and definitive to costs. Based we our of the billion estimate assumption showcases culture testament review production within X.XX our a a of case We Oyu our which team to earlier excellence Slide expect really a safety and development estimate of AIFR of will impact on brought to the estimate, quarter from base year-end, the Tolgoi's XXXX $X.X cost Oyu definitive preliminary both base have cash sustainable October mentioned X Oyu to a of which I XXXX, is the factor the $X.X an billion. case gold February Tolgoi forecast billion, for third of XXXX the range first COVID-XX. provides remains in while capital discipline.

gold in On earlier capacity of year Tolgoi has an of left throughput meeting bottom chart, grade higher ore will see mill a with quarter above to cash had nameplate XXXX with the has row our grade work this beating or Optimization consecutive ore. the higher on of production positive on the is operating you Oyu pit access open be resulted accelerated its areas implemented quarter reflecting processing another flow. track harder, sixth our of in the guidance. impact in to overall in year

CX the can production, our on the quarter cash Focusing production you gold on positive third see of costs. impact gold our

would we hand Officer. let our Chief see and Colton, Financial call on expect the gold fourth to of costs and to favorable outlook Luke strong ounces XXXX With XXX,XXX a our with through to cash Luke? And, of now that, a for were expect flows. production. prices of over gold, course, our if current to XXX,XXX impact at XXXX quarter We levels CX to me remain cash commodity

Thanks good morning, everyone. all, and

XX% in if the for in QX of The decrease QX following to our due copper increase XX% basis costs for higher and sustaining XXXX XX% I'll than you generated XXXX was QX all-in The was to along, from XXXX turn in an lower favorable pit primarily impact in by that prices, had copper in and period-on-period costs also Turquoise capital 'XX of decrease versus to open all-in sustaining operating to cash requirements, summary a Hill in gold positive when movements this had CX expenditure together Slide And sustaining capital can at please both average unit increased QX liquidity compared positively was on more cash increases significant sales X. to into those cash of financial revenues can which versus impact quarter. by copper get volumes. For QX I to X, and cost not and provide Revenue metrics the the driven key increase in the XX% more $X.X the of and sufficient a you turn production to costs XXXX. from primarily impacted working activities, costs. to CX get contributed underground was The XXXX operation in billion and September QX we XX, in increase that’s with our QX and QX to And If XXXX. XXXX. including our development this I of be meet expect you available XXXX. Slide

charges case estimate reported sustainable incremental from it months as of in around incorporate interest it $X base cost incorporates funding well excuse target does finance development that's $X.X well as underground by commodity This billion. assumed assumes me -- estimated October further similar of period up to of capital estimate as to (sic) first the estimate $X.X towards of our the over earnings impact we It billion and range billion successful release. we and debt, and COVID-XX. case billion] [X.X assumes estimate, our the the gap the billion the on prices, funding reduced the principal earlier as trending we XXXX. production $X QX XXXX were and existing re-profiling gap. we've requirements, guided existing decrease that's funding assumptions project in as our of also base would with case repayments base debt, this Further, the the Our If

and either various negatively estimates continue which impacted, will positively of are be many course, outside funding to Of remaining our liquidity control. our or gap by factors, of

pursue into non-binding debt. indicating recently Turquoise debt seen, and MOU we Rio have jointly the additional existing continues Government ahead existing of also would of of alignment new with incremental to lenders, and well to re-profiling OT’s you other Hill to Hill Mongolia. entered will the the seek As that Rio in reducing raise Tinto requirements. -- a Tinto, company's company proposals Any to present its potential end medium-term notes requirements. us options, re-profiling and Turquoise financing minimize their have implemented, funding actively XXXX. track options, advancing require of for global as on gold incremental successful any Rio streaming stakeholders, is before of effect to options would prioritize to such funding currently Rio agreement Further, the implementation as And the of may consideration to if we and debt course, these lenders, continue additional as including the Their Tinto, achieve with equity. re-profiling the and relevant of we are funding

may nonetheless While our be and will we impacted we that completely factors to Jo-Anne, And conditions I advancing with by other absolutely control, and funding success you continue Officer. market be of determined Chief be many strategy. to our Hill's all that confident to not understand over hand could Operating want that are these within Turquoise preferred you that,

progress development estimators, the continued Slide to the is with align range to of the independent of at near anticipated achieved. our data sustainable development to under If preliminary in with continues estimate range. the is completed OTTRXX Based definitive the capital billion, we production Underground XXXX, in experts, of development Thank panel middle COVID-XX, by X. lateral progress you, see October and be expectations. expectations. derisking later we disclosed be view and QX. currently on we technical review Despite end from TRQ turn received continued project data Luke. the disclosed early gross milestones, in with which The line underground the OTTRXX of $X.X broadly to which is their Key the

third support System redeployed resources particular, to the X. strategically critical anticipated slowed in last equivalent were production Panel to from meters underground As Material focus on quarter, X, quarter, as in Handling underground the have infrastructure

towards expected for large area and forward, drilling to area work commence subject review, be expect will and is blocking orebody undercut Due Underground of completion of in to area's has in X production. a characterization to a milestone the design XXXX. Northern This size X, X XXXX. three which been of for the X, of review X and remaining is Panel our key mined. on areas the Panel the Looking portions XXXX next into of collection first Panel be Central near XXXX, the sustainable the mining and we expected with X a Southern and Panel decision to consider Panel data is the North to of Drilling, update continue through zones. see, mid to made and analysis process Central and significant and for Panel

may closely. normally, to COVID infrastructure, We've of X to return of productivity slowed QX XX. numbers. or announced to please Mitigating X.X Slide improvements the shafts due are COVID Turning to strategically pending handling continues to And further cases kilometers impact commence scheduled And our operate personnel in relating from project. materials development in in ongoing X on-site resolution we've focus seen infrastructure improvements due to something support decision any and is materials although the equivalent advanced the seen X X.X on key specialist rates. expected, Shaft to impact QX, in relaxations. the a construction. COVD-XX restrictions preparation handling to works to and with highly Mongolia Mongolia this easing timing recently the for observe to need announced and Underground of redeploy the sinking focus of an And redeployment potentially personnel has restrictions. equivalent been to development of kilometers to of recently either turn work, well to we'll QX this resources in of progress personnel, key

work on quarter, South team, to and technical new X our team the team. personnel be to During employing the Gobi add our skilled within region. Ulaanbaatar-based opportunities existing we services built licenses exploration in-house for new supporting looking will our third The

and leases. Over a will survey be We are QX, focused the the and following results Turquoise will one We've of in exploration survey processed XX leases The hold also last our on to this few XXX-kilometer X zone. the started years, the over exploration completed leases. zone on the mining geophysical Hill's months. currently within efforts be around interpreted

team Our looking mutual that commitment. are new with respect, enduring our build to exploration partnership active and demonstrate relationships long-term neighbors

back Now, I'll turn presentation Ulf. the to

much, Yes. Jo-Anne. Thanks very

a Tolgoi operational as more stock our take our with our combination from to Tolgoi's up, highlight this Oyu work Mongolian points and today, X up CX just advances excellence to underground commodity during that Oyu establish a scale, significant lowest resource wrap wanted eventually even expected a workforce, focus we before progression higher ore, decrease So Collahuasi. everyone I of presentation world's in that copper continued and asset, And asset we in first perform to continues is briefly grade only to on profitable X an and Quality is more to levels. production Grasberg to Tolgoi fully the on and Tier see. competitive are exceptional capitalize well-positioned as and base evident to producer and cycle. ramps underground to resource our cash costs Tier Oyu quartile fourth up, expect and the to trailing becomes operating when largest a ramped be Escondida, forecast for producer its

continues the presentation XXXX. to some released and remind performance, Hill in Report, demonstrated. We ongoing operational costs the Technical tax open will generate the in just of concluding our our of support flows, the then, August consistently track We've I'll in after cash which production our safety everyone guidance and cash Turning flow billion $XX.X consistent highlights Slide best-in-class Oyu and enhance that turn, of development. has financing which Turquoise Tolgoi our and record to with met underground of today, of optimization Oyu before between excellence Tolgoi a XX XXXX net estimate pit we

Tolgoi a producer course, large Oyu is, In of our production, gold. of copper addition to

XXXX layer XXXX that an XXX,XXX average ounces additional anticipates per forecast our will year, to over Our to Tolgoi operations throughout production resilience allowing commodity Oyu of cycle. the

strategy. comments focus funding reiterate commitment Luke's the I funding progress earlier want upon company's and liquidity, preferred the to to regarding and special building and Finally, management's committee's

these company. to and to be actively announced several of best to of you've number As that market interest non-equity with we're a discussions to that the examining engaging Tinto, we're do. are for us, heard evaluating going number a progressing development for It's on solution Tolgoi, obvious formidable anyone Rio with of the there to solutions to the the and milestones from Mongolia is important exactly name the see the of decision are tackled, still with a including recognize few. Oyu options, and arbitration ongoing challenges of and but items, remain, to in go issues recently met, develop participants the be are Government we're important power that to that We what

We with of committed in the as course, key will cooperation when we commitment, have We so a Hill them. for one appropriate. of but ultimately, our we're also one of each clear spirit Turquoise plan company, and the the tasks with in do our market ahead, progress best update of the progressing and stakeholders. to and on mind, on the interest And and of each absolutely with executing

of guidance our finalizing continuing have rest plans estimate, market. will our we our fiscal We we forward as safely premier this help Hill the to execute further to focused and to look on XXXX are of investments. Turquoise the Looking deliver copper in the expect one global to the to ahead provided solidify year, we which

this prepared remarks. So concludes our

now Operator, Let operator the you, questions. the to please. for turn any call back to me back

[Operator Instructions].

Bairstow comes Macquarie. first at Hayden Your question from

with. off start to me for couple a Just

might I if firstly, the Just answer get I Luke first, could. to

sort there rate than to been what assuming, we well. then I others to of? schedule debt discussions. and specific mine harder I just costs. $XXX sort on at there's Is sort you're all performance of is million, to obviously, some mean, mean, of facility -- cost out need it debt looking to milling that those the single a I'm on secondly, be kinks on aware here. that the also, milling that better repayment makes bit that any a Just going of then And getting repayment And mean re-profiling continues the I new debt them? particularly facilities just really actually one of do there not amongst -- obviously it's debt operationally, anything than

really even the down, ore to interested actually Just you more index so work build once and costs fall further? go what's understand underground does might in, that get theoretically driving

Thanks, take then Luke, happy Hayden. happy you're second them, Jo-Anne, to take one? to you're the

Ulf. Yes,

the maybe Luke, happy -- take one. can you're you to first yes, Luke,

my do I'll best, thanks. thanks, for Ulf, Hayden, And the questions.

So you're IFIs. when right types syndicate re-profiling, right? have We of about you that current lenders, the think the has different

banks, tranches. commercial different have We we have

as lending well. ECA-type have We

managed, forward that each through managed look will of perspective, our believe categories of of that we individual be different different slightly and definitely starting slightly it perspectives, From those worked do of do position. managed. classes can one of one think they'll each a issues be can all those be we engage to So and come have be with of But different at can the from lenders. and opportunity to sort can all we and

So confident it can we maybe respect. you? hand over Jo-Anne, in to do remain that I

And problem. thanks, Hayden. Yes, much, no very Luke. Thanks

So outlined costs. impact good impact the -- -- on sorry, the questions of on cash general Luke costs the on -- well Ulf Certainly, costs. quite

In two, detail another terms had one next year, in of -- there'll January. we've the level chart milling the there's this one and be cost, planned one another not and for of

including that some good year's We've processing helps good ongoing overall costs. also from reduce costs. the moment performance at the so optimization And had liners projects, to

that's an ongoing So focus.

from but out -- underground, than the a pit. the Central rates is the has In coming material than ore, terms higher at relative of material throughput underground the the pit, the harder lower got of rate throughput the it certainly Southwest

hope rates questions. than throughput to it's will answer goes the a But Southwest there, straight exact unfortunately. not certainly your way I pit. some better that have So answering it

your the part first forgot of I second question. Listen,

debt, we'll other any lenders debt, to obviously, quickly. hybrid looking mean, have focused re-profiling. that absolutely as and as be So supplemental But are of discussions progress progress or other let to financing course, additional additional on me TRQ back additional of top that be any discussions on lenders, up with the conversations should we I we the well. we debt And of will that, relation advisable. In answer forms or as around with senior those necessary

And have of around lot a is that work program. medium-term progressing time work we note So been into line. well global a those -- all doing

kickoffs with discussions that, to good we've and addition In streamers. had the good

at a is looking are the we is line. is work So transaction. and supported, and tracking well time very there well the progressing streaming Again,

So have still we are I didn't recent be think able press question their Rio Apologies, to Tinto consideration to you probably in this releases are for that on to track important proposals do I answer. fully that would was of your year, we and an that to provide seen end before of the part looking that.

So to terms and [$X.X $XXX debt, million all is billion], equally -- gets is debt how credit? going there to going of that be this the the this an of ranked? Or terms and ranked in a be order all existing new in of bit

still So all negotiation, and is to discussion Hayden. of that under subject

debt, there. That's too supplemental stakeholders detail it, get et obviously, streamers, a it, with And right, bonds we where come to into where rest want all answer can't get just there. comfortable The the first additional a I to far different can continue look as the debt and senior different right Ultimately, banks, place So negotiation. we -- at want cetera, to for that the the there's security. be well. to the we'll of is work stakeholders, of to in still the case the going to bringing expect that ways is of to ranking to probably of you subject would get feel be senior supplemental sort all you ultimately to

comes at question next from Canaccord. The Dalton Baretto

remind understand And that, help And Rio as arbitration conditions soon you default? to context to elected after event what can a follow-up Ulf, around the can why arbitration? this us a go under you’ve me can Understanding? of announcing to call an of Memorandum you so then

Dalton. Thanks,

we proceedings right? arbitrate, following. that saying Dalton. why I strict say say -- is by the So would the following, confidentiality can me arbitration provisions. are the let that But under what I caveat

plan, form. with and with as that the difference mentioned, offering It's the their is not the potentially And funding them a seeking financing benefit parties. compatible the Our ultimately -- of avoid to support debt, provisions relevant of agreements, and become And bonds respect dilutive preferred clarity discussions Tinto it for and is both And and arbitration we've to really arbitration to to as obligations to Rio parties to the the opinion which through don't will rights be by seen there the additional in got their think really right, really, clarity, does concerning stream. in is we is with clear, think obligations for financing our and financing process. ultimately Rio to be adversarial like respective benefits approach. our that between to this a We to of OT. rights TRQ approach clarify Tinto's process funding Luke And parties. apparent to of in additional to both the role intend highly objective plenty any arbitration finance its that additional be provided provide we

process, embarked the that's that upon. we've So Dalton,

forward this take the once months. And be to in then I release added move to we course, expect our we'll able that that's X think to X press we clarity. said its with run

second The you XXX% Dalton, sure the I Can fully a I question, understood. wasn't question? just repeat

if I ask just a can go I what question, on before the second on follow-up But you to Sure. said.

same or not If opinion difference I a are Understanding the what's of that, Memorandum page? part understanding that was that's build the that that's on understanding. arbitration, think implies you the to causing of my I'm guys is there

of beyond that want that re-profiling agree Tinto the we mean, pursue upon, debt. agree them, like now it both to TRQ and say in additional Rio the could the Luke Memorandum we to above Turquoise because what level, of my then at the I what that, Hill. would right? we debt of previous and maximize explore to is $XXX to other also and back the you that it, covered that it like ultimately we out, we million look to level does, Understanding so debt if say, we come you options the would sets agree I of to raise at And upon And existing answer, Well, both asset Understanding, Memorandum an seek we and what We want believe Dalton.

to do matter, in with because with believe for So it's that, allows parties And quick arbitration forward plan governed approach -- really have is clearly, us strict clarity, going discussions of the to relatively important recently able for that to and in the that to it's and like to And as forward. felt get Rio because us do, become put we different is to be financing get all clear it least to remaining proceedings. -- over adversarial most we important to process But or a continue that to these this a the to our different is ultimately to we we what part by it It views, want us helpful that confidentiality because interpretations. us our of going the we it is believe Tinto there, thing would quite work then process process. together that place. move we is

it. Got

lender the payments, And capital what to payments default? are of under call finish be conditions the that can whether my so event default my they me if financing call question, -- they make unlikely. certain can the the Rio's it notice which to-date, then And there Okay. project just conditions that of under guarantees a understanding just on remind under of it project is -- clear becomes to clarify, financing an the all second or

Dalton, don't there, say, agreements default of It Can I series way the something suggest mean. of lots the is of be starts I obviously that's lots Heads complex. would Look, right? I -- quite of what up MOU we mean I XXXX think, not to I called there's Dalton. Memorandum you know that well. offline, Support the a of -- by complicated, them. placement quite interest and it course, XXXX private of -- the I'd out goes lenders, the event Agreement. is normally the I there's They take so of almost so to this as all can would Agreement, the off because so XXXX Yes. there's agreement. are with on say Agreement, XXXX Financial It

detailed do here that you want that, can take to to is available can if maybe so in helpful look They're have some people that. we they're explains arbitration in help public complicated. what part, quite domain, we required that So they're a And complex. why clarity discussion, but is that at the quite And process. all a govern is because think

trying new through who engaged some last to Okay. in of What just with form those your taking? I come representing And teams? one of terms one with With is problem. for discussions terms, far maybe advanced it are negotiating Yes, working you How no me. of up then team do have from And regards the government, and sounds them to TRQ differences the your guess. they? like

Sure. Thanks, Dalton.

referring probably late what is Working Parliamentary exactly. really think resolution that was year Group last parliament, to I passed in Yes, right? the you're So in

try I'll as can, answer So I to as and this quickly Dalton. specifically

So the signed the to in in Mongolia there. the what in now focusing The been agreement, we an the now for discussions funded like And and the hold not plant in, is signing into the that's right. preferred Then had as election dialogue state-owned SOPP, the we've do fly culminated had Power But plenty that is was do. the come of ability new of in in to that's middle since we because what new we and on the then and new And because in It's of travel There right, agreement, the ultimately to year, restrictions are had that's year discussions happened. forward, happening helped, power this an we've that website, then approach. is have agreement a very power we Framework so led called the limited by you Source we're base November. have that the case, able conversations going amended that country. obviously half summer of else. Agreement first government summer. in not like, on virtually, of anymore, everyone now what COVID, remotely, That's our to our if

of those and a some who is other a involved involved tends from us. power, terms too. it's be of would tend ones I, that But And the certainly in Luke are other stream answer say, part focus probably, the kind talking there's I we to depending involved. we into is most to about. and obviously, your want that working who question, perspective, In on group by is does then work government, more I people of I'm delegates as be funding Dalton? Does the to Luke TRQ matters, what of involved, various -- strategic on Tinto number that of, Rio don't we're the too discussions. that part go a much,

very that’s great much. Yes, Thank no, context. you

at question Orest The from Wowkodaw Scotiabank. comes next

not Rio Tinto going the not sometime -- it Year. Just to questions. indicated following sounds New like until on -- be to think the I'm Dalton's you going to but year-end, bit I around expect streaming is to by that funding the arbitration you a is be potential Earlier, up options streaming in confused. settled submit

to curious feels of a or Government financing of I So of stream and was confused the respect also how that whether with on that. supportive about not? type they're I'm And just Mongolia then

as you engagement, question Tolgoi important we operating very and Oyu the their ultimately, if Luke, an They are I We Yes. own speak right? first with feel in take obviously does an with constructively if They have their to I then on they're Look, active are Government you in Mongolia, relation answer a for Thanks, XX% maybe the keen And for dialogue their Mongolia, of Orest. that to I'll will second in the support. maybe sovereign is ask the say shareholder. honest are are one, country, we what of the deal government the country. and of would can't how and is, themselves. They the important to They that? Government we second about such, speak engaged Orest, stakeholder, are them. I right? mean, engaging okay with you're a So one, that? right? happy and But are

so speak them, intention, the their speak Mongolia we will is so in we But for need them. plans their be negative think I attractive good do convince to have absolutely course, have Hill, also and what them, get make that to we that government support, the sense happy for now entity the as something put can't you Government progress Turquoise work able forward case good we'll have the aren't expect the for to good attitude because the we of but Luke, be we them. first for can ultimately, to dialogue government question? But We much them. that of are we is ultimately very decide as involvement that a is visibility, a make progressing And with funding address, should and sure We work, And we approach, want for our want mind, certainly government. that or support. to government's work. Orest's can't has certainly, we shareholder right? the to also need the to the We that our to we our collaboratively Luke as with think

best. definitely my Sure. question. for the thanks do I'll And

the TRQ So Rio listen, in the our broadly. discussions of actually to the think of we to point first and with continue independent sort key arbitration, across is our advance funding question strategy I -- more TRQ's to think sort that funding discussions sorry, and of relation we get that, funding can

proposals the respect appropriate ready things respect that of there in in put related be well, front it's the do specifically the their it GMTN before discussions -- and related that we as in Rio. to those And we're doing of consideration. the before time. arbitration. for there's to I put RIO I'm to important sort put ultimately, forward be in needs of just work arbitration But with other the of are, suppose the isn't from at put perspective of done year. isn't of parallel other work to a would think proposals streaming, much of don't do to end to at the we'll this to streaming. aware that. Rio's that that doing prevent of still So us able of be is is anything for to on do to say also obviously, very discussions to think -- the proposals end anything intention would that what get when And I doing the with we'll the from that. those start ultimately, track And We the and Rio these we can that able to to year front be the We're in of we with Rio feel progress lot consideration moment,

provides bit So helpful a there. context hopefully, that's and additional of

as to few is came guess here. follow-up, it's reason Report due be that I OT just your a estimate then than any shortly ago? a that there the And -- out months the to going Is Technical Okay. definitive different think any

Thanks, Orest. address? that happy Jo-Anne, is to are you something

Yes.

Sorry, you want a get sure just to just bit little Orest, more? I say I the... could make

sure. is of schedule my year. or same ago? Report to before was think Or be only going reason different mean, copy X months any of basically a cost a and the believe for just materially definitive question that will to the the of or lots the Phase released Yes, And that out disclosure end this there than how report? few was, be I is there's OT on the to different is put Technical estimate this

We're and they through But known work through to-date. going a not updates this COVID us, report with seeing of are it's assurance question effects go differences. the We're our shared results. together. relatively the we And process because still as course, are of that on material close this great it's include Right. does

changes process assurance some yes, our that at end. so our necessarily so going at through any are reiterate seeing stage. not do still And differences. we're we're this But But I major there

Okay. But from haven't you COVID already disclosed that there's no impact to the schedule capital to-date? and

that the that Not that if impacts necessarily. the this you within include the COVID. COVID understand headline nonetheless, work been has impacts. the detail is just some released, details -- we as the estimate. because necessarily of there's to it of impact, impacts had like. We've been got to-date. definitive does of similar, try Report them have And And not the did was And it in impacts some reviewing is two doesn't and certainly Technical still this. very sets the those estimate include such we're The had and results. mean We of that included within mitigate those But

Okay.

I can are -- the to right? is corner, it. But to just slightly Orest, the just maybe we yes. differently, estimate mean around say I definite close

And so where as are. we really indications to we've we preliminary given think

indications we moment, we, are, said little have and finished and warning And time, we But obviously appropriate we a of we're that's where the have at a certainly, see come But advanced, yet. as health some market even felt quite to there's the full So that. market though, earlier, preliminary the where it bit same give why as we to given governance out. that around completed Jo-Anne too. process at not will visibility important the was the well

[Operator Instructions].

Hutchison comes from TD. Craig question Next at

to process. between like arbitration Or zero it do your the is terms a on of possibility question negotiated exit a is When funding binary you of like shortfall? equity, the arbitration, expect follow-up in you a there equity? clarity, all have A outcome, something settlement,

Yes. Thanks, Craig.

sort for back would the say maybe is let I a what second up So me of -- here.

binding arbitration agreements. of gone is It day. the we've binding mechanism that the those agreements, arbitration the of a set governs to to set a at of is process, under resolve the end Under outcome a So issue.

we something -- I if get that, that go X said X result to to on X course, before, mean the ultimately, envisaged anything think is to X we parties. takes on to those process That of and never expected stage to between arbitration, were both about binding the we lines. to it X But it that we beforehand. is could doesn't agree months, as will months, take be to X

some possibility middle? But resolution Is it's a is a you a mediated, of there come guys the prior sort that to like that possibility? in

give So right? always to can't months Craig, the what I All can Well, that That's to right? be might process I happen. us possible, a X think clarity. at possible, but determine the is runs X envisaged, this I as and ultimate it always what result -- is if or that's predict moment would say necessarily binding

next over hedges hedges. years? just of a Are the then And couple question on guys you contemplating

to might one? ask happy that Sure. Luke, that. comment you're to I take Luke on

Yes. me, That for problem. Thanks, the for no question. sounds like Craig, Ulf, one

work of hope that we at that we say in lot actively be can in hedging. looking best a And as something commit from is we able shareholders of it. to something at you at to and it. being And of part hope had from future, might around we are guys, see want would bit done would do We're I where obviously able that to have not of all interest possibly position this we listen, the quite we but to So a I We're at rather But we're later, than to is the sooner actively anything it, looking there. moment our more can you the time, the clarity if -- our interested the at that's near is in even do. encouragement say company. provide it to be to a hedging

there any Rio? Are vis-à-vis hedging terms restrictions in of

at comment consideration, hedging. that's we the So even there Rio's of actively options could executed the I govern we're are don't sort be still looking I in we moment. the that sort And executed. taking mean, But are between are think the to context want TRQ put stuff on that options that be at, looking with into the can agreements we broader at believe we broader looking Obviously, on the -- Rio and that at view relationship generally. of limitations specifically

purchasing puts? Like

Yes.

not at specific. can at but here, know yet So, we very be support. where you me we -- Craig, that to specific not I I the be do quite I’m quite stage I'm have mean, But -- I good want probably

down work think narrow that the options, to a we've to you looking verify could kind doing different to that's perspective at case, variety we're a including are endorsements, the stuff. we to it mentioned. now ones just just looked tried that be TRQ And from We And the that. ones executed. source We've of at that of

one for maybe last And me. just Okay. Makes question sense.

terms based saying or Report year, the next what you including solely your copper Technical it's bit lighter are is of Is gold some guidance next a and In pit? guidance the open the Or development that of production. year guidance? in for looks it than like the on little

we've XXXX guidance think gold you you are about So XXXX talking don't for outlook? -- our I Are issued our about talking yet.

Correct.

Yes.

So XXX,XXX to XXX,XXX ounces? the that's

Yes.

Yes.

firm issue bit of do timeframe. we of that that kind that's in and we guidance and do still issue different do of next up, we that consideration need can We not So as for December and able at get pit. but an at be that just all work the it. all it do to of to when to gold, up I are will the we looking for outlook that moment, the might up where There's XXX,XXX guidance, that be some XXXX we to well. at couple we be The But need areas we've mean, taking work usually outlook to the we tend stage, January guidance. that months. -- to is of got doing anything that about still the the include in just XXX,XXX the there out to open into just this would Historically, firm -- work underground to of is obviously, and we wouldn't a firm something in we so that's would

are questions. you. There Thank no further

proceed. may You

you, Thank operator.

I summarize what morning. to let briefly you tell able this been just maybe me we've So think

Oyu strong Tolgoi. at this the and performance safety team quarter seen operational from You've another

October at CapEx of with in a billion first case, case. towards that within I the end year. lower progress heard with come preliminary to later the base production the expected the a this there's base think that you've the as estimate good highlighted delivery indications range range, of is as $X.X we've are sustainable remaining us definitive that from i.e., And XXXX current the

until lockdown and assess that December. Mongolia, are we that We of seeing was the national the need to first in any impact and moment extended the will monitor of over just the weekend potential at

you highlighted, We update have the non-equity are expect end visibility before that such can to year. a funding of and progressing, the on more on options Luke to something range of we as have work the we

you, Of any a course, update Government range happening, developments Tinto course, be including, to that will the there's on other done the Rio well other areas, with of as we as in in to this regard. COVID And in is the remains to just say our all best safe stay seen as future. foreseeable wishes vigilant meantime, of we've extending the and with Mongolia. needs how what me for us do is stakeholders, for remains of work and please our of markets That remain

call morning's everyone. us this. we'll very with for and Thank the let close that, me having you much, on you this joined thank up So call, with

that conference your your today. rest you for this gentlemen, day. and your concludes We of participating, Ladies disconnect the lines. Enjoy you call ask we and please for thank