Alamos Gold (AGI) 25 Feb 212020 Q4 Earnings call transcript

Good morning. I would now like to turn the meeting over to Mr. Jamie Porter, Chief Financial Officer. Please go ahead, Mr. Porter.

thank Year-end everyone XXXX and Fourth attending operator, and Quarter Conference you, you for to Alamos’ Thank Call.

our and CEO; In on addition address line resource Services. MacPhail, any and our respect Exploration. on the update, the have Technical Parsons, Bostwick, COO; Peter reserve line today, questions Mr. President to John Vice McCluskey, To myself, of of Scott R.G. we we President to have Vice with President Chris also

presentation also during by through our a conference remind will call on available to We be a be that is the the our that referring followed everyone session. will presentation website. like and question-and-answer webcast I would to

included our and amounts statements out and making and will As Technical approved by in the analysis we has presentation, notes forward-looking Bostwick, will this Vice mind during management’s annual John reviewed the as our And news unless I a noted. information of qualified over that it with call set all of quarter bear as dollar and release Also, otherwise factors please year. please to in the risk presentation refer well the discussion person. in call, form. be information in the U.S. in to provide and cautionary in this now are dollars, overview Technical Chris the to you an turn mentioned President Services of been

and COVID-XX project. Young-Davidson, Yaqui on transformational were for for the In to construction Phase completed was announced La as July, our while XXXX transition operations generation. of These strong managing the Grande Island expansion key pandemic. the of the mine Jamie. you, through all flow and extension plans lower achieved Gold, III delivered cash commenced Thank Alamos we on free catalysts we

enhanced of safety and we and the XXXX, on as preventing implemented the our performed been we at identifying part employees, of end health programs testing year, contractors Alamos Our screening. protocols visitors the The spread COVID-XX workplace had and that operations. XX,XXX evolved our through have the of in by over tests virus instrumental and

and ounces of year. operations in for XXX,XXX ounce year In Total Our well met cash of producing the of fourth guidance full-year per guidance costs Canadian had operations gold. strong consecutive were per the sixth we ounce for guidance. year, $X,XXX range, costs the finish all-in production our $XXX below while to met particular, our the sustaining a performed quarter

X,XXX average a in quarter, record starting guidance. its with record new to of per Davidson $XX a up quarter Young record hit million. another Gold in increase million, tonnes previous the with stride, day cash free mine year had site to record This is to rates fourth flow, production quarterly drove mining XX% free generating flow Island cash $XXX of the ramping respect year-end from exceeding and XXXX. another site mine of record

$XXX flow performance, Our quarter higher cash million. strong including solid with operating combined and operating gold another free $XX price, of cash flow of drove a million financially,

growth Island categories Island records, XX replacing at slightly more across one and increased last mining financial demonstrates million including resources limited with totaled operating continued exploration million ounces have in successful $XXX an COVID-XX. November success XXXX net at We Since and increased another and despite resources ounces. the in million we reserves Gold depletion. Gold full-year, we III of acquired Globally, the the to potential million. one and record an year. million due perspective, last increased had a to than Reserves nearly all X.X year. ounces, impressive depletion being Lynn study Phase under now expansion XXXX, ounces beyond new what and from programs detailed flow upside significant ounces we of million Young-Davidson exploration we The reserves set Island, our in cash our For number of just year added three Lake

Looking at Slide X.

global the remain per Salto As Mulatos to ounce the to costs and December, production X% in a sustaining expected XXX,XXX to in are outlined All-in a $XXX we sustaining cash drive decrease to ounces, XXXX. as El higher capital a pit. XXXX, range in the $XXX XX% of XXX,XXX increase of portion a at to range similar expect in costs reflecting of in for Young-Davidson total and between pre-stripping

capital expected larger and Gold. high-return reflecting expansion Yaqui exploration project to the of the Island program on the Grande Phase XXXX, III is budget a increase La at spending Our and from ramp-up

sustainable Turning internal growing now high-return term. support a our projects on is component to Slide business into returns a focus model operating long can the X. growth over The that key of reinvestment

As a annual turn for consecutive further outlook, higher I strong increase our a balanced expect will the Reflecting dividends cash strong pleased call Jamie shareholders. over increase to our generate Porter, to free approach XX% financial performance. Jamie. while dividend an quarterly of This to support increase per sheet our part combined announce we allocation, $X.XX will capital to marks second to now review growth share. this our in of XX%. fund strengthen we further CFO, rate this our of balance our to to continuing and to internally are which flow,

John. Thank you,

note X. XXX,XXX $XXX of We very a a in million Slide gold from record ended We of the ounces Moving strong revenues year XXXX. perspective. on financial for to sold on

generating Gold mentioned, again, site Island in a million John once mine As free record highlight $XXX cash flow. the was

end an of of low costs the of were guidance year fourth from quarter. a million record all-in Including $X,XXX below half XXX,XXX expansion. a Young-Davidson and flow following free mine of record strong $XX ounce were generating in were sustaining the end average also the free Fourth quarter of demonstrated low $XXX guidance. completion in second cash per the of million cash sales ounces at Total of ounce. revenues the growth $XXX flow cash per the lower $X,XXX price the per costs of at ounce, realized full-year

full-year, noncash XX% the the near the fourth working before guidance. met or cash or to million cash improved a all-in and Operating than sustaining per quarter. in For changing record $X.XX were share capital costs to total costs flow $XXX better year-over-year

For a capital prior million in set operating record of before cash full-year, share. working the record the noncash $X.XX was XX% $XXX in from flow per or changes A increase XXXX.

were in exchange and net reported gains million deferred foreign of onetime Our foreign within million, $XX included taxes exchange recorded earnings unrealized and $X.XX per of or million. fourth share the which gains $XX other $X of quarter

adjusted million $XX Excluding were net $X.XX per these our or share. earnings items,

with capital Growth La $XX share, from XXXX. million and of $XX Island capital, $X Capital quarter, activities million at the III XX% of or capitalized construction Grande increase full-year million spending Our of sustaining ramp-up million of growth representing an capital in at and the were Gold. adjusted totaled million net the Yaqui per exploration. increased fourth earnings expansion $XXX Phase $XX $X.XX including

track further dividends return share in For double to the amount $XXX shareholders $XX buybacks, to delays the million due Young-Davidson the annual an COVID-XX-related on in higher XXXX. mine XXXX guidance, to at full-year, in $X.XX returned lower starting expansion. the completing expenditures capital $XX and we dividends of to in million reflecting through above returned capital per in are dividend share were slightly primarily XXXX, of XX% with million We a increase in quarter, rate this the

of the drawn million quarter securities, our We the again and year in credit of cash, As and undrawn equity previously capacity. million in with once announced, at ended $XXX million are and we revolving repaid debt-free. facility $XXX the million $XXX fourth $XX credit

our We an MacPhail, position internal cash operations. overview shareholders. are of to provide grow turn I and our the growth Peter Officer, Operating our our to call Chief to returns well positioned while continuing will over now to to fund projects

Thank you, Jamie.

to Slide X. on Moving

the XX,XXX from Mining in tonnes Young-Davidson generating quarter, free continues Producing target. mine totaled cash exceeding million a year-end full flow new strong the rates day average full-year infrastructure. the quarter mine With record X,XXX its line ounces increased $XX guidance. to revised to a lower site perform finish, operating XXX,XXX ounces, per record well. production in first in with of and

all-in ounce with fourth site average day rates per of the cash reflecting year, the half new the in and from ounce tonnes quarter in XXXX sustaining earlier per basis, of from first cost line lower full-year of in of of efficiencies to costs Total rate On mining the year. $XXX the were the significantly a per were design the X,XXX mine expect in We and $XXX of second increase revised guidance. per tonnes in infrastructure. about both to day half operating down mine X,XXX both

$XXX and to to $X,XXX ounce costs mine of improvement expect guided, we per XXX,XXX decrease site Total XX% previously a As respectively. sustaining XXXX XXXX. between ounces, expected XXX,XXX $X,XXX and are compared between ounce, cash to costs $XXX and and all-in and production per

both $XXX flow to the operation spending capital of of on site long-term generated rate $XX the capital, lower decrease $XXX of with total and $XX XXXX. quarterly lower quarter expansion focused strong production Phase per detailed lower in cost site of of of Island lead and XXX,XXX bringing permitting, of Slide ounce $XXX long items. next to costs mine million cost in us. few to to site trend in quarter, We the the behind guidance, new continued $XX with and significantly higher costs infrastructure XXXX the on mine production down that approximately a expect cash record over cash quarter, with million year now production, also of a With is activities per per of $XXX III years in of expansion well and million site the total With record ounce, XX,XXX in the million ounce. record Work ramp-up gold to sustaining was producing production full-year shaft at mine fourth sustaining mine per and all-in the expect free ounces flow margins, below ounce $XXX in associated free all-in $XXX costs engineering X. Full-year to guidance. million. Gold of ounces cash of line another per procurement Over record set and cash mine we fourth and the

costs to Looking Island results was $XXX XXXX and the XXX,XXX the produce forward at expect per ounces, clearly based between all-in last success ounce. expansion significant and continue and study of of ounces $XXX on we The $XXX upsides resources $XXX July economics. Exploration added sustaining reserves to a ounce, to ongoing XXX,XXX cost between of III attractive million Gold reserves end Island cash and of to resources mine and XXXX. impress. at highlight high-grade already and total the released site per one exploration to Phase in XXXX,

Vice the success. exploration Following ongoing operations, remarks the of summary Exploration, President on a Scott Parsons, provide of my will

Scott cost quarter, and to $XXX cash increased Salto. at ounce sustaining XXX,XXX planned full-year, also the lower all-in X,XXX to Slide and per quarter, expected produced Full-year XXX,XXX down grades, first the Moving million area. sustaining we the cash $XXX were focused and on XXX,XXX earlier Over up as the to the in XX. to ramping will is of cash activities, clearing the the million cost production $X XXXX, now per combined XXXX,. Salto Yaqui camp, of the spent in of Parsons mining half I up Construction pit project half the $X,XXX costs Mine Total total XXXX, capitalized increased site significantly the the to update. all-in El of over ounce. quarter, production ounce, Mulatos the Restripping call reflecting reflecting discuss expected on higher reflecting mine will be in La of to Mulatos’ total early grades. guidance. La fourth $X,XXX as guidance activities ramp expected averaging average procurement. Slide produce revised the X. stripping Grande to to cost with ounce at reflecting for are resource Mine for to second initial to in during ounces to is reduce million quarter the ounces in with site speak, the we million ounce. per higher year, exceeded turn and all-in continues per below to the detailed per to the of increase site Mulatos cost With lower reserve from sustaining ounce cost expected $XXX XXX engineering to area, are in profile. complete in ounces of to cost construction to but $XXX project pre-stripping Yaqui per Grande XX,XXX contract El $XX

million from reserves with COVID-XX. X.X On Lake million million had Global ounces. excellent to Young-Davidson of Gold, offsetting than X% you, XXX,XXX Global impressively, exceptional increased Thank some Peter. Most increased deferred more million to indicated even XX, ounces, growth due ounces, to Slide at down X resources with Lynn were another increases resources exploration, than we by planned an at depletion programs driven at X.X Gold. respect reflecting measured Lake. conversion and X.X and reserves year to and ounces. to of ounces Island smaller to XX% Lynn year Young-Davidson Island The

to the once additions The grading shaft. resources We significantly now of ounces. in the and in Island increase new significantly Despite with portion block was XXX,XXX focus saw of past resource this grams year reserve larger proximity continue Slide X.X additional see of ounces, also only of inferred excellent ounces, to of results exploration to Gold XXXX, and one at between XXXX increased and across defining and at gap Moving overall million resources, again, COVID-XX, growth. largest XX% X.X XXXX. X% the East ounce X% in resources of the where total higher Island where East than the ounces, grade per resource was X.X a East, main per increased million lower categories, planned net tonne. tonne area we is area Island in on latter additions up grams resources XX.X of increased middle in Island grams mining contains largest ounce combined exploration with annual that, more increased in XX%. inferred date XX% X.X or XX.X inferred of at the increase million On XXXX. our continue due XXX,XXX this this Slide shoot offsetting resources by laterally XXX,XXX with the remain $XX budget million averaging our totaled to Main in ounces per to key XX, all Since see have resources and per Main XX. million have ounces areas, by part grade East. reserves with inferred million ounces, and combined a a will to Island XXXX, the nearly date. that the increased an million of combined than XXXX. in of ounces, resources XXXX. Island driver to Gold, open XX, rate Gold our and of completing for discovery addition of the now top XX.X increase from drilling average at over Gold Inferred a the our near-mine plunge, bulk with of three in in ounces, ore excellent focus the acquisition tonne, Island portion costs our $X of ounce planned On a over years. down primary highest We million Grades time we the ounces X.X more to in the and X.X depletion. ounces Island remains and converted including in planned per the to Slide East, growth grown reserve to and Reserves Island about in in the increase XXX,XXX to the potential of ounce closing three acquiring largest Most reserves of effectively XX,XXX growth were On depletion past

what well adding allocated focus our Gold, XXXX. spent as exploration near-mine resources remain $XX of regional evaluating targets. to Half where in have to in Island our global XXXX, will new the as is We XXXX on increased budget million budget double we

million Mulatos at to million Young-Davidson $X of increased our $X and Lake. exploration also have Lynn and each budget at We

have our the success We over call early are at With higher deposits, MacLellan the at reserves Lynn intersected increased Lake encouraged mineralization by back Young-Davidson around X%, are we John. and will turn exploration success I the existing having deposit. given to having grade the that, below where

Scott. much, very you Thank

So your back presentation. open Operator the will the call hand questions. to that to concludes to the now formal the call I

JPMorgan. ahead. Thank Tyler The go question Instructions] first from you. from Langton Please is [Operator

now Your is line open.

XXXX Thanks kind costs Kind hit low confidence results, Young-Davidson, end I low for at Good guess, to the sort XXXX. and in the there of of the looking cash kind of end start annualized QX? give at production guidance, production of you your for I does or then unique of anything, and get guidance you of kind were XXXX could QX for end my morning. guess, of guess. end taking quarter I that the about some you of the to below would of I questions. costs of was that guess, the low of sort just maybe higher kind cash the

is tonnes - we here. Thanks, It I - Peter did yet Yes. running a we at I QX, weren’t I mean, mean, X,XXX Tyler. as guess, X,XXX sorry, day.

and in tonnes day We first X,XXX a of expect half X,XXX the second the half. in XXXX

So could fact I given half up in QX full the second year. the be aren’t that bit might will be to low a a we proxy. of we decent It think be quite the time,

Okay. just La expansion Gold Mulatos. with, then guess, Phase Island Yaqui And and then the I at and III

inflation, seeing Just and given and the just recent oil steel kind prices with of any are run-up diesel. those signs in you of projects, cost

there? concerns any So

of chunk is are of costs and just or steel haven’t involved Yaqui of start anything I some So costs, There that a in we will it Grande It like in project lot mining There which mean, project. most basically with that a locked escalated. those - is earthworks. pre-stripping, I is I pretty that La Mexico. capital mean, in. not big is

normal our And will of production There three expect But think the with sort that I next are bring lot anything already And I like yet. of have of there anything we or us. over things more our as of on bit money X crusher Phase there. significant - good made behind inflation parts start be And whatnot the years wouldn’t so on it. course III, we a we shape in haven’t into spending orders and seen estimates a we there. are

Thank Please you. question from next securities. The Smith Kerry is go ahead. Haywood from

Your open. is line

an for year. the X,XXX of Peter, first suggesting were average as a tonne just this half day you YD, for

got mill in days tonnes mill maybe how two Or did just QX. you You shutdowns a have shutdowns? Is day of first me that there you could half? X,XXX tell perhaps many in

will first change be half. liner a in the There

are it happen but to run April, do we that think shutdown in to like those would be expecting those, four three absorb I we day mill to shutdowns. absorb that or a

You run day at higher for it a down be wouldn’t X target. HX to operating the for expect are those or days our a you X,XXX three the rate and tonne and days, impact

But have able why to guess question seems already gate it X,XXX, You Okay. get would wouldn’t thought my higher? the of be doable? I pretty are out X,XXX at I is,

Yes.

We are doable. hoping is it pretty

to expect be doable. pretty We it

Okay.

- answer for Scott can And Okay. maybe this question.

exploration Island much targets, be haven’t percentage, the might say, maybe the of a you percentage me you that, which Obviously, done regional $XX of work now give on spent could budget trailing a just ground, on? sense? a as as million, much Just got how you on the have

geologic that. exploration result gold several focused of from targets about $XX targets across the deposit developed and $X as regional we on we the on have Of is broader building identified model the that are million, Yes. out a for the we down testing property budgeting program. It million have

be and work think I that start there done think. drilling, be said ground is you’d that it spent drilling And to at probably just got not you to Right. you likely is before I there because much

XXXX, XXXX kind that exploration exploring Trillium are the be going we more beyond. we ground with Yes, of in foundation will in and and on drilling build actively the to

just me know Okay. should what assumption Great. I was Mexican this, can you And but I peso forget. Jim, remind today? your I know

to Kerry. Yes. Sure, I X. budgeted we believe XX have

We our ‘XX ‘XX. hedged exposure have of got about and between XX%

costs in capital our spending are terms both and So operating we of Yaqui at protected our La well pretty Grande.

Okay.

number last a one on QX. for Would Peter, at And that say, XX XXXX question number mining be pretty XXXX? in for, just Great. good and the and Young-Davidson, costs [country] Okay. go-forward a CAD

mean, are is I that Yes. to. heading where we

of we once through in. and mean, think, into day, X,XXX it range. to it a get kind to takes I are tonnes I heading year, few dialed get a quarters see that this we

capital it - little think a I all development. do around bounce bit, we versus development does on it depending operating much how

it some trending that, is definitely So always it because there but noise to of is there. in

of And will Kerry, the the we just get we kind are for to XXXX. dropping We back low so of second XXs where mid-XXs, second were for budgeted as for a the XXXX. half there in we half the think of reminder, the first half of year,

group from Thank Chiu you. ahead. from CIBC. Then Cosmos Please next question is

Your line open. is now

it and increase you from coming into question to Could and the the the dividend. you right lot on the to is in like what get is increase Island seems reserves East. on to my increase it, get resources. also you see spacing Great remind is how mentioned, resources in of now drilling it me the first Island need of inferred a M&I and as reserves? later of drill do be spacing Maybe terms in It kind into inferred? in to tight And Gold

do want Scott, start least of at to that, the it? you take

can take start. Yes, the I

XX meters. we defined around, drilling inferred XX in And are are resources, say, are geologically structure. XX inferred where again, resources between anywhere would XX and meters, and is at. the So we these on typically, say, depending for between I Average, constrained

understanding of controls we on the - it confidence Island, strong is, realistic, of classifying So that as and I for high resources a spacing, at that think, is inferred mineralization in which sure. they and predictable those are have

And as a great to Island the follow-up, East. is it see

still grade want this stage, your assumption in. factored that at you what again, dilution be than mining Island. dilution here? kind compare to Maybe I but mining would be time, imagine And point could stage in looking if reserve in at potentially, can I of point put your You have tonne, are early remind inferred, reserves? this apples-to-apples me applied you early at time even into But at certainly grams XX.XX this at higher per wasn’t

Chris, Maybe take want you that. to

Yes. Yes. I will answer that.

factor We have would type experience, depending got about be and ranges XX%. overall, the variable between and it and XX% good average XX%. anywhere of scoping think, on past But I use a to dilution the area a

I right based to still And on now, East. knowledge but... that fairly apply kind Island were Again, if early to your that seems is reasonable, of stage,

Yes, that is reasonable.

Okay.

And plan would good. to now, some the exploration picture you bigger is the fairly flexible that of Sounds to for then you Again, imagine, to these at I results potentially kind of as could the value maybe add here, now, right John, grades but first. to new higher Island potentially change early shaft. of right a things very the mentioned, get stage around is of some mine possibility?

a possibility. that a we It options. in we another are approaching really our flexibility way we can get belt start our the still of we decisions certainly under years limit make two have this is And to project. that exploration There of is lot before

XX fair a next of for months have So flexibility anyway. still we the amount

the interesting us pit that been our Island operation, So An of couple isn’t is and global thing the our depleting cost, on ounces last that effectively quickly higher Canadian always replacing have I in with resource we comfortable about overall ounces to puts zeroed very them particularly in over very have low-cost think high - operations, in position. in fact the we are years, recovery Gold. lower been we open a that grade,

with a reality them ounces. to favorable - opinion, are than the a in else. better anywhere replacing lot picture, recovery we a incremental that you XX% our ounce an are far with is overall XX% see recovery. increase We’d in rather with ounces an reserve opposed as ounces And Canada, the in more while have So the ounces

reserve, of we think So made a have I from quality improvement. overall the real the

great How you That have you Mining here. hear. Scott is Island - made or I you that on does mentioned Again, to just Yes. as the - previously. Trillium Gold, acquisition think

here Trillium but does at picture that early, the haven’t of at sort the And looked how seen - Mining I I yet. fairly fit rocks haven’t here? whole into again, So

- So the east of is it Island. it to is

So rocks? at is trend it How same we stage? of East? Is at on the this with look it early potentially this should Island type

that one. can can I No, one. take that Yes, take I

for we two Island and have main east have does is, it we as strategic Trillium, essentially, been come will off or been of going. that, East, reasons drilling to and most the been the appear have strike property the And boundaries. the obviously So plunge, as eventually, we and acquisition, the interpreting cross dip important it one down deposit close the over

So acquisition any for perspective us exploration is did we’d from that remove risk long term. land the about what in tenure the worried be an of sort

opens of and is on Michipicoten strategy. It second deposits it the So seen is strike And a kind long-term and Island where really is off up to which the exploration. Greenstone part down Gold that of plunge deposits East. the long the Belt, of the has located, years XXX

that the the feel are the same broader approach approach over that have been years. can there systematic And a showings of taking in are terms we belt, we exploration Going to defined with unlocked. kind that opportunities be across the back of significant

the around our a operations fits systematic approach, in exploring applying from a exploration from of well strategy of perspective, understanding consolidating and and Gold Island there. controls and targeting our So with regional it mineralization

course. Maybe Of financial a question here.

some I talked about your here? XXXX, profits that at And But all on offset QX. Yaqui my to able we what the spending Mulatos That of money question given I are payable should As know, in would is, you you is, MD&A, million an in of $XX timing La with CapExbe XXXX? a you Grande assumption in it the make how as of the taxes payments. tax making these is deposit terms guess in are of in

we mean, cash flow I $XX at you in Cosmos. million generated seen absolutely, free Yes, would have Mulatos in XXXX. that

stripping absolutely $XX La can is that other is against those of the cash here at the the quarter. XXXX costs reason tax that and flow. installment costs behind So due deduct We Grande million-plus this big construction majority Yaqui our

So substantially lower QX of in tax installment a XXXX. we’d expect

last exchange Great. one here. on foreign question then And

your dollar-U.S. to exchange change of dollar bit strengthened every With to I go flow. $X.XX are a X.XX the in the difference terms in a back million cash MD&A, $XX C now, year-to-date, you one rate, quite Canadian dollar I think, free assuming right if is

small and given I hedging portion what dollar? time. Canadian strategy of you it the is a hedged think point me at Jamie, the current strengthening how look of only it at could remind this in is you your

pretty for Yes. mean, last position say, hedge we to months, Sure. looking but seen I dollar Canadian I’d probably been some over, increase significant has X our the strength. have obviously, the opportunities,

we’d So we haven’t as been much as like. able to do

XX% and got of we $X.XX. I have $X.XX covered our XXXX between think about exposure

it If in for then pretty it a So will hedging. dollar, dramatic the the at to free does be do flow relative being. our small the $XX for an million And is a is portion. cash Otherwise, our of currently that be aggressive budget, a have impact $X.XX we time price see impact we terms takers we’d in on Canadian year. weakening

all Thanks questions Great. XXXX. I have Those lot are look a the I to everyone. remainder and the of forward

next Please go Fahad from Thank ahead. Suisse. question you. Credit from is The Tariq

open. now is line Your

the renewal preference get Lynn but Lake the a there competes I maybe would apologize Is think it think or be one capital this, Kirazli? were you I term, other? project fair Kirazli, allocation, to you if medium at permit color over there the helpful. Any for in the as missed capital approval is to with about if for that

before to suggest in permitted we still go because permitting got months any we is going through fill to can this is XX fully would normal Lake Lynn that process, at whereas Kirazli getting start I spending capital have just it significant that. the off point. Yes, I XX

- it mining get be companies. to there Turkish that quickly. talking to right the to were are one fairly is approach renewed, back is our But of we we we’d to now if able get taking theoretically, So work licenses

several, We are have been approached by to and alongside about companies talking Turkish of and we mining in us that on project. partnering coming

with So of likely next commitment I significantly are theoretically, forward Turkey, are theoretically as capital partner, sort would we which there. in going envision, offset we significant step anyway, that our since to the take we a talking would do

Okay. as just Great. follow-up And maybe a then.

up would partner Kirazli, than well both? idea you some more permitting if a the as to with would is to then, get that of help it maybe is it free at do Lake the theoretically, So the Lynn issues? capital were - or Or that partner

And Probably and we Clearly, you all some have it. to a way, that most all in is the going we expertise or the money upside they navigating that form. help the bring order the reasons on shape Turkish need that we we one since technical the just to going of in are the we help of navigating require to sort of is project, partner require build have to politics, where both. are

we on were a hopefully, enough lend can that a legitimately smart bring hand on that front. So partner to

some additional So to certainly, up any capital that in in they giving way go would that would terms that an redeploy could interest us purchasing Canada. in project, put the of we capital

We a instructions] Thank ahead. Parkin you. Financial. Mike [Operator question Bank have from from go Please National

Your line is now open.

kind terms now Congrats performing? basically of is on you date? just were commentary my have But of to you cap? the been Most questions And on is daily just rate, effectively can good for exceeding months seeing you it mine to could the it there? how Is you lower several operating the Or on of a average? in running are some you expectations? give daily quarters answered. two Can a remind permit quarter. an it us annual has me speak why Do

what I at very well. mine. upper lower with operate to infrastructure the ability Yes, Mike. the night is performing mean, that had YD Thanks, of we kind and day is in mine It from

or that tell we past, our don’t exceeded expectations. think and been by tonnages our the our You are rarely have our exceeding exceeding in have - are we I numbers. we our expectations - exceeded can very ever exceeding

well continues and I perform running since, it to mid-July. guess, So

Some had a out various I mean we days, daily tonnes waste to have average times, and you And that have also. - rates. mean, have to to have We ore you day. day, X,XXX do skipping waste. for maintenance to put be a to down XX,XXX that, right? shaft be needs I because need you tonnes

tonnes Some day. just days, We ore. X,XXX averaged a

X,XXX that operating well. it day we target, to getting longer to So our is an tonne see no being impediment very a

You otherwise everything there. have front are properly, and in the feeding good of and it to develop and shape a we all in stopes have be

question of permitting... second part was the think I the your

have the permit. you If operating

Yes.

a we day would So it above it it milling - down boils quite per number. is It permit, what is over and is permitted we well to a And there. high.

have at are level. XX,XXX don’t We I operate to permitted think per we that day. to tonnes any plans

- tonnes not doing average it in something So day. we slow yes, currently, it mill to even us mill the down. but permitting problem a could are tonnes there, will a can has the sure, a day. - are can situation X,XXX the even mean, where on But no we I do mill you do And we do XX,XXX get think

things. of got established to that then made question drilling YD Scott into YD you And decision of to the set kind Super. halt to for With Are and continue West exploring YD, of at the you until you kind the deeper down and right. All further drilling at of Parsons depth maybe exploration side up the smart resume kind lower. extension? a

Yes, absolutely.

hanging drilling lower the start limited in with down the seen I deposit, we the really YD testing. and opportunities at also, wall, Young-Davidson. the is place, test the enough deposit. both It West program XXXX starting footwall can’t a plunge the and with part of exploration infrastructure mine to in potential So But of in really of emphasize main limited did

mineralization, potential a did update, And There but along end sitting we the lot as Cadillac to upside. the obviously, footwall. and mineralization exploration in going and wall some are grade to higher of We opportunities salt work both structures hanging is continuity water more of to this define the just there. lake points alluded my it of the And the require, any to system. is I these geometry significant at intersect

in also underground I So other ramping those evaluating and and few mentioned, the not within within opportunities. be of some I existing as resource only the drill And see but months a will setting. reserve up, cyanide, second to next different do upside start we drill, then the geological settings, expanding in opportunities

it That’s for much. very Thanks me guys.

Thank you.

Next go ahead. question is from Lawson Winder from Bank of Please America.

line Please Winder, Your is with question. open. Mr. proceed your now is open. line your

has ask particularly you underground able the Island, about wanted been stockpile And Are provide sits running ahead YD. where I seems it today? little mill. to bit stockpile a Just the both the and at of Island at to that

Yes.

five We grams. have got about XX,XXX at around tons

And Great. then at Okay. YD?

coming is into the have the a again, milling YD, tonnes we typical year, doesn’t XX,XXX but there. It we last Not at significant it long stockpile. grade, had, maybe maybe so rates kind of reserve at

Okay. just... great. then And That is

sometime the well, mean I is is some as in future. that the stockpile on but that for very We have low-grade way books

of Peter, a No, similar Island. just Yes. course. in at vein

the little fair tonnes that at looking achieved full-year per like late. But tonnes day to you was sort the related had already I a little would forward is it then to all? just day the is below XXXX, to into is X,XXX QX, a bit you be if that day. For expect call a X,XXX of reason to this. you per you expected I’m I X,XXX the that are I guys touched COVID curious, tonnes a are - and on apologize reason Unfortunately, lot And closer on on And be per basis?

Yes.

So tonnes the mining was at a day. X,XXX

has challenges We fourth below unscheduled a tonnage or be five medium make day tonnes which milling down referring grade X we low are the that. for days have bit some for stockpiles, still so and being and the you off us in quarter. the quarter. bit for to our of you to X,XXX But rate, yes, which able was just to the XXXX. benefit had crusher caused grade think I our for Island did should quarter, juggle the a a ounces grade, high expect can

return. a allocation and Super Great. question And on just capital helpful. capital then

just expect vis-à-vis You a the continue be But to to for quarters, couple dividend. case the of the for we have going that last guys, buyback? indicated the clearly preference forward, can

I Yes, can it Jamie. take that. is Lawson,

our always are price, pretty limitations course dislocation I majority use we blacked to that the of to the return We issuer has associated in the going a buyback is return than out but to the we time. of the dividend see we normal when through bid are there preference about rather with shareholders think been buyback. what significant share a opportunistically XX%

to. like when it it So on hard us to act we’d is often for

discipline with the So associated I like dividend, annually. level think the and about I in of the million XX we we USD are with currently comfortable fact think

afford I think decent as investing time other something we growth projects. same that our the a can that in and at return is well

it percentage Okay. is I been historically. payout mean it is actually below where the

do in area you potentially Alamos La Yaqui being upside potential going mean, final contextual Canada. how been way, I’ve as the Mexico transition it be jurisdiction? and And big in Alamos exploration Mexico that Mexico Mexico? think the from fair additional now I since So Or toward and I last is of investment history don’t away you the On a on forward, think investment you would basically, do in question. Mulatos with disagree a looking maybe you you do about going are just other anywhere And in you forward? see in about that. jurisdiction Esperanza? do or one the then and doing been it think has just And the in the following How to

is can believe an is Mexico attractive take I It jurisdiction. still John. We that.

is a there years The through country the to now. going ahead They by difficult in are Mexico. think time in opportunity right been of COVID. hard very going hit I be has lots

As and aware, is element as is affect its rob years country, couple criminal industry to there everyone issues started and including it with trafficking the mining directly last industry ongoing interest last started narco operations, towards mining in the mining that the turned ours over to April. of that gold

district. to unfolding from for made us stop been in the extended certainly concern production back explore from have us. new have in seen So discoveries, as And has mine cause Mexico, have Mulatos Alamos But what originally, we those significant XXXX. we as would things for continuing we benefited life tremendously which were in had

going most after Mulatos that we and sightlines in good may the mining of obvious be us couple to now, other had surface every effectively It fortunate use we developing, challenge up in and in forward cover were we and is through really good on. going. kept earlier But that is on, district. expression are the things easier that to because deposits down have try that we we XXXX, going follow look just XXXX. exploration us to that discovery hidden good for Most we it is pretty have things. more the district, still up able been be years, they was to techniques beneath were a find ended able But geological existing geophysics made of that it Here, that a the is to fact and

the Mulatos the We maybe XX% that have district, holdings only still of under covered claim. have we

of aggressive Alamos preference reasons. further So acquisitions And circumstances, patient. Mexico. the in amount Canada, also strong upside obvious and very exploration making been we reality opportunistic Under there is are The have has for do very we a still particularly about current for not a there. substantial is, always very

tremendous Canada, think see and So if But better opportunities investment evolve country turn for our attracting been why success. by that acquired and its there. we been is I for A heavily when it will opportunities measure, we the And Mulatos we where investing evolve we lie district, going respond. million originally. to is have attention time things the the project there in in being, that continue and encouraging meantime, any to continue will $XX see keeping we our in again, we and a

be wouldn’t made We where without are We project. well over have it. $XXX from that million today we

start we Mulatos it the gave us. are and for very grateful for So

Mush That’s all great guys. for That’s me. care, it. Take color appreciate John.

concludes are morning’s further time. at questions This no There this this call.

feel If XXXX. to you answered, questions Scott that have please XXX-XXX-XXXX, extension you have Thank Parsons been contact for your participation. any further Mr. not free at