Hecla Mining (HL) 6 May 212021 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Hecla Mining Company Q1 2021 Earnings Conference Call. At this time all participants’ are in a listen only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Anvita Patil.

begin. may You

Treasurer. And us operator. Operations and you Hecla’s thank Conference Thank Hecla’s welcome, first joining Assistant Patil, Anvita for This and quarter for Call. you, is everyone, XXXX Results Financial

along Any Our statements. financial results in and have On forward-looking XX-Q presentation, pass found slides release this Roberts, Officer; and slides the and shown and that made Russell involve with Phil projected related Hecla’s website. our the Baker, is risks available Hecla’s With and what SEC. I Chief call, and with as of documents. and These CEO; Hecla’s and Financial forward-looking this in on management Lauren and cited our Phil non-GAAP Baker. President was President cause call Officer. Reform are call Act the to today’s today’s issued those X, from XX-K the that, news morning, Chief we Hecla’s X differ also President Operating risks results by Vice under Private statements Litigation Senior to other today measures are filings Lawlar, come Reconciliations Vice team earnings Securities in on in could the will in release and Senior

cash in the was our fundamentals cash revenues a our balance successive margin. previous quarters We At driven that highest record. recorded is primarily sustaining improving the a that We to morning, Company. Creek, highest a results for the gross and strong performance. history. sheet first you about Greens Anvita. Referring guidance of was of The good adjusted And for of had we’ve and our we’re year, record speak had Thank we X. these everyone. operations. financial We our had and very cost this the all going Thanks, to minute. quarter, Hecla. Good production more had our $XX of in joining XXX-year and million EBITDA in our slide lowering performance cost call. operational Lauren cost at that all than It by higher very for quarterly cash all strong And the reflect second performance was by

So, very our is balance in shape. good sheet

One flow of the quarter And one to wasn’t is out the XX it lowest. about cash were lowest the our XX cash of flow last quarter the and years, point were wasn’t the things of quarters. the the our for smallest when I back There went that is want I year. lowest. first was looked the XX it second first always at about XX and where lowest, typically the

the anticipating when the we’ll the rest reversal of we’re plans we significant So, and the have consider capital our free up, of that year. flow cash this build we when consider operating working generation over

So, announced was, think as of policy. to good Board an result of stronger. year as increase our rest the that, a as be the will quarter the we has And dividend the first

cash shareholders in prices cash going the And will and flow XX% silver more the $XX to by free in quarter at will to be participate annually, as first incremental that flow to dividend generation of $X.XX free occurs silver-linked shareholders. increase, ability Our have. increased per our have we’ll about to This that that. share Russell’s returning we’re payment XX% -- about speak

frequency low all a it to in maintain had also very rate despite were And good for -- performance. We the we first X.XX our about strong quarter. performance, the able operating

are have the Small the had. policies of Footprint, report meeting, ESG the making probably focused the something annual power, we focuses In positive per performance or mines is title in these addition, our that small have our the to going that a we’ve really our sustainability gas that Because fact, lowest ounce -- among underground greenhouse we’re extraordinarily and release which they’re report like with The report, -- investment. activities Hecla in Big highlights Benefit. emissions alternative also And And lowest on we’ve by uniquely make footprint. energized in ESG largely an the industry. May,

So, going going at annual at of to we’re meeting, And exploration. a lot we’re that focus attention update also, annual meeting. to the on the

just some now. they going say in the year. be to of to the to best And the We’ll annual had the And weeks, going some we’re as few let going I’m of But, in a of days early we’re wait you’re see, pass wait till history the that, programs. But, the potential really accretive. for to to I look drilling that of with So, rest extraordinarily the results meeting. we’ve me to of these call Russell. the in have the forward Company.

ended from Thanks, first aided cash in debt ratio doubled free times, X.X well strong of margins the Hecla $XXX the adjusted delivered by cash below our to the Phil. higher liquidity position $XXX consecutive almost at with to to quarters Turing slide million. times, we of providing of strengthen EBITDA performance. second strong sheet XXXX from prices continued and while target quarter we flow, since quarter a X balance net operating its as cash million record With X.

our increase margins free to stay X, costs to flow. cash continued dollar slide margin, have every as at with realized translating increase silver Looking and in low silver prices

XX% year, it portion that at the about the cash fourth and our in of capital working only than partially see gets bar, quarter this gold the If was double you reflected look about quarter. of free and you because margin changes. the And second more our of flow, third quarter last

or $XX.X compensation and flow the performance payments cash higher $XX.X First and of accounts quarter capital months flow the $XXX flow million interest the We better changes XXXX months using was XX cash concentration. of timing But free see after same related negative is free cash million of important prices. trailing to incentive million. of future payments the from timing free receivables the current $XX.X having maybe more working million XX of

has remainder our Board to at in per anticipating has equates share. silver-linked with in from generation. the ETF an return dividend to X.X% silver, silver-linked of cash is Hecla’s per per the of This and increase X confidence metal, price. $XX rate [ph] yield year. cash per slide the increase from to tied flow realized reflects policy, the our increase ounce the the $X.XX of $XX the over free flow This growth XX% threshold the our in unique policy a to for $X.XX implied which dividends dividend an approved the enhanced to price or the The free silver dividend price, of year, to this the an is to the investing distinguishes industry. ounce Moving Hecla dividend At

free which Continued to With our quarter should from grow continue flow to I’ll strong go operations. operational that, performance. expectations, through pricing silver to our turn performance XXXX cash drive Lauren our and higher first call the

I’ll XX. start slide on Thanks, Russell.

and focus on foremost is First safety. our

a the continue safety which injury reduction teams a all management system XXXX. Our quarter since in their in XX% health exemplary of is performance, safety first and revised implementing our frequency X.XX, was and rate

an the done outstanding business. operations teams have job improving aspect Our this of of

X.X XX, a full all of silver our mine, are sustaining costs reducing ounce at we results, on Green ounces at produced higher ounces are and Creek of million little we On XXXX the $X.XX quarter. the in year XX,XXX it focused than gold of While slide we further. per an for

smelter to more to license We’re favorable higher guidance, tax cash costs terms and the and and tax. mine charges, income due cost lowering byproduct the reclassification the all credits, sustaining lower treatment in of

terms This recur in another due in benefit quarter, prior will not better smelter later the the be to will obligations. year. all of customer benefit for a While purchase meeting XXXX, we first realized

updated ounce strong cash to to changes, these generates cost to combined With silver for costs are Creek cash delivery Creek’s with very $X.XX low guidance to free sustaining is $X.XX Greens flow. consistent and per lowered prices Greens per all cash high cost $X.XX ounce. $X.XX and lowered in

grades produced expected Lucky silver million of the Going We XXXX. exceed to annually outlay production in of Production by goals. to X.X the capital ounces X ounces planned significant achieve production slide to required is to is at increasing No of this million mine first XXXX. of the full we around as projected ounces year. the XX, deeper, these mine improve the fourth quarter million XXXX quarter achieved in anticipate X.X the and Friday to

testing of mine. We’ve shown amount Greens mine, are and productivity cost at to change Creek, to various last we less relatively to no strong zinc addition, Lucky sustaining at with other had Casa a produces first our made In in ounces of the has Unlike the in improvement improve Berardi per we the and on of outlook all Lucky method the The while changes Friday treatment small concentrate dramatic safety initiatives zinc. impact. Friday. of optimizing of year XX,XXX increasing slide gold as quarter production $X,XXX compared a At ounce. therefore XX, charges an mining

reliability maintained Our than great results. mill are the recovery mill improve greater XXXX. October to since and yielding the investments availability in has And XX% of

costs flow Our business to improvement increase XXXX generation further and continue expected and to are the in cash reduce activities from will mine.

consistent together are and Casa a factors, focus multiple in positioning with the at in lower reduce AISC. deliver costs downward Berardi we’re see to ongoing productivity starting trend are production pipeline to efforts by to these Our improve to and underpinned All costs. others

remains in Our ounces XXXX to Berardi of all Casa for per unchanged to exceed and ounce. sustaining guidance is costs at XXX,XXX $X,XXX expected production $X,XXX

stockpiled of at refractory about roaster. slide Operations, to Nevada X,XXX XX, we Moving at a was sample gold produced ore bulk ounces a of third-party that from the processed

be processing tons of ore Roughly through production the a and be gold, oxide third year, to is times autoclave. party Midas XX,XXX ounces tons roaster the range of refractory and For ore XX,XXX mill facilities. from the to an XX,XXX in of the additional to of sent XX,XXX about the an XX,XXX to at expected of will rest

be spend end we’ll Creek $X Fire our at the pre-development to Nevada, quarter. placed the Graben. in by Hatter access addition I investing year mine return will call very remain And in on to expect the Phil. second about will the other to in maintenance With and be activities excited Midas of the We in properties. this the Hollister We and million exploration that, care Nevada mill

Lauren. Thanks

for guidance point, shows this go production that XXXX this has consolidated through Let’s our slide XX. nothing at And guidance. XXXX. changed to in And

can So, lowered there byproduct at the And silver the our significantly lower Lauren Creek on shows that slide credits because of primarily outlook, that cost charges let’s where cost our Greens see focus outlook. treatment we’ve the you talked about. and

guidance, an at our margin. expected adds new you it this to this, Now, about ounce $X look if

So, have operations. generation the of free cash at ounce about current $XX an prices, we from we silver flow think just

have XXXX. we increasing that thing Greens Lucky we million other consistency production, Friday at The to point with out see and is that had about full grade production’s And in the XX expected U.S. ounces at Creek by that to our is that reach what this double we Lucky and the Friday silver XXXX. at

few Now, this a time want little maybe before these we to talk done questions, silver. moments slide before. no for really than I just line you about do for we’ve at other on silver, the for look to is calls And like because I this open if XX, more want a

grow, XXX fueling And less the policies. photographic over long If current be a been looks XX it’s years in annual rate has the the and demand same substantially be fiscal X% is governor we last mined strong Industrial are growth by the you even are more reverse to for which total demand decline, the decade. to at with five-year a monetary that transformation. demand even a now Industrial challenged years fueled ounces And decline actually demand continuing of it, production. for than high think mined on think We been was will generally growing energy copper, factors then, the XXXX. miners finally, this the XX silver about over. and and has last stronger to last million

were back to be where hard. getting going we to So, is

silver we’re at the more year. -- rate, we grow have. last to going we to it’s rate world’s it, to of decade, same industrial so the of think just Now, understate because need growth continues ounces The million XX this is that going X% as demand the demand energy to per going think and

substantial no or to which XXX% mines of more to byproduct Now, need you until you this has meet of of produce demand, realize is largest Greens the Creek, times the you Codelco X% you mine a who need that States year it’s the United silver silver X only a sound much need or because produce that about [indiscernible] that silver. size current as production if exhausted, doesn’t are new mines much, to market, even like are seven

mines. not in a grow different the we’re a view our production so, be to if are seven in likely And that But, their next that is to is do, that the riskier industry in produce over all that silver to be for are able silver that combining it’s we market companies even going silver trying squeeze to believe jurisdictions. going we And well positioned Greens happen. Creek to equivalent are to we that’s they’re decade, the that

going this the positioned stocks. demand -- by to not about, average the nonetheless, coin risen has The I’m and ETF already continue struck, to but met and prices just shortfall you investors and of squeeze look is silver XXXX, than prices this dramatically, because thinking squeeze be price [ph] it’s And Now, do to happened roughly result when were is of of that will over demand in and sort if rose and silver XX% XXXX at supply, ground so. rise above the rose squeeze the it’s faster it’s what XXXX. a

exceeded lows. and for just They $XX and So, done. for or higher all of the over price ounce. be significant the We the reason, have will have either come be an low below below highs. what’s will lows We think any think coming what do decade? don’t not have give highs, time first have we what $XX there’s in we’ll do their that? highs we’ll Let’s to lows. think high-end no period we silver silver to both And just And the time gold copper you

silver is plus So, to $XX unreasonable. a price not see

And final you metal silver. precious how copper, lots that should no the thought to an gold. copper silver. say I is but one an copper, unlike really the the So, industrial quite options. with or What investable metal reason become think about similar is It’s has needed investment there’s it’s on application like of it

you silver for above the unlike investment. gold, have ETFs, have And is have about You coins. of XX% the only ground only is XX% gold, demand but silver about for you industrial stocks, like is gold, And demand.

the third the in as and precious silver is of We U.S. as So, producer is all industrial produce or the Hecla think gold. silver production of copper the position a in a And unique course, that of largest States, silver produced growing. in United

silver think mining silver We’re company. have obviously the went silver we other decade. history what’s happen up, mining of we the outperforming of a coming every And oldest going and company prices that’s the over to when which the course

that like for with line I’d to open questions. operator, So, the

of We from [Operator line the Ihle Instructions] a question Heiko have H.C. Wainwright. with

like put at me. the your silver-linked increase I the grades Two in dividend on you silver market second and quarter? same we’re still due QX improvement as Greens pretty Creek yourself assume will the as trend shareholders, and year there be in variations halfway congratulations terrific is for half seems as or ones it better, be the well. by do I But, quick you from already Phil, unchanged. in it. the essentially day the orebody, anticipate normal slightly through the it. the in whole to current lower The to mean, a

is the on production guidance we look, Well, unchanged. gave

after different. ask its XX little I can guidance a year, being Lauren, year And more to years every has you fluctuations almost color. let goals, obviously with or one high. it the Creek isn’t or so, its either met quite tonnage me associated and is Greens this quarterly we’ll of grade any give discovered being quarter-to-quarter. That’s things have But, variations have of be

very very in you we array delivered And that point internal the multiple adjustments at make zone us mining the And for to grade a Phil delivers also variability that may plan But, on that’s than year. achieve time. we some bit from where to mining variability orebody. we And consequently, vary to a mill expect. is typically mined And more any the natural metal Creek. plan Greens reliable And course, orebody can we sequence. there’s we in year. a would average, of. the a say, year, consistent, And in I the that happen by spoke the So, move at build the for the see we the why of

So, no for I see look reason things different for Heiko. year, to the full

You far, through treatment wise the in please? sort mentioned you’re Can just charges. impact so us you seeing sort of of walk QX, what

unusual an XXXX. treatment had jump that we reduction. XXXX, and we charges had We XXXX in had that went then, And a a obligations up. were situation customer Well, really QX to XXXX. the had that significantly and fulfilled And back big lower that

had going So, about that’s QX a to $X in we be repeated. million benefit not

So, lower. that’s to you want why Russell, that add to do even costs you don’t see

Yes.

said add million non-recurring the been to bit Greens had a had the what that at treatment to rest for Just of point Creek. a to about in is year, at the And little had QX Phil then, charges benefit we of $X set. this that

So, some charges, treatment on our shipments. those of we kind relative should in stability see based

And recall the XXXX you XXXX? in treatment from do to what charges differences zinc the

a Not $XXX to close. but pretty ton. Close quite,

in So, almost got cut it half.

the and Yes. until XXXX that April? were charges treatment the not And remember set lead for zinc

month so. Yes. or Last

$X.X provision just and then, your cash? or one-time there thing closed a matters, that were environmental historic. due this clarification, Is increase one at And is million, is for recurring at to operations quick any so you an

it that Exploration property. And It’s But, will recurring. this would think have never the fully that cover at Ranchers uranium reflects anticipate an But, this will obligation. you we we that do We obligation property, property? expect the not know. old

line Turnbull question Scotiabank. comes next Our Trevor of with from the

reserve the out. looking little Greens We’ve grades much had that And just should you changed in the moved we bit revision the silver the higher as Phil, are over to expect another thing, wondered your comment might certainly, same have reserve come few than down I reversion the Creek, Thank noticed to out to grade sequencing grades. grades head quite been to several I you’ve and that of question that terms a silver or actually years, -- a several you last I mining, play progressively quarters last further in mean, of them. or reserve plans? you When couple at for about how a years update to expect almost But grades the the say. closer Yes. higher you. haven’t mean but if could silver over on

Sure.

So, you’ll years was about had announced mine going designed increased to ago, we three we new to that allow mine plan recall, us grades. a that

to throughput. five And better But, X,XXX day. and the annual. now at And were say. of how XX, what to on, XX tons per as tons been good We’ve the we day, Like achieve to said does But, trying would an we’re to day goes first. clearly, that, so, we’re million started stay grades that’s of order per what’s do to per in focused out when at sure able be I any the ounce sort we’re miner, XX having happened. figure We to going to I increase at have decline. grades part time years, going the enough, -- is and been And we the operator the that. for expect Lauren highest in production, mine level it tons of

how material fill. hole is we to the some throughput challenge. all it get to from of Because the okay, at fair the have do plan is we the increase point amount will cut stopes to mind, comes going through it’s and focus long and -- that going and a So, be be

But, So, that has the figured that it’s Creek a place out make Greens to culture how operation, this mine better. to going consistently challenge. be of

that And you add? confident you to what be production even so, sort declining to of Lauren, able grade. I’m like see, with we’ll maintain the levels a would

we of we the reserve out. or of to continue decline issue. time like to a course, work number on just something this The more And add there. grow of I mean would plenty the that to reversion is have years

lower. of that And at also we for order helpful. is looking some So, some can And we’ll as plan point. increase throughput. effort that, the if reverts to into grade some we’ll may recovery put looking success which But, have the satellite exploration be and compensate some we’ll at a zones, to in be bit

circuit of circuit. So, grinding number things. both we’ve of work which a some mill, to The limiting on review on news work on good typically is really and those factor, shape good just is, detailed grinding in the we’re the in of got We’ve the it. we’ll the completed years mill

say, you to the recovery, over also and is last want mentioned course recovery happened So, points… the at that look recovery I to decade. interesting improvements it the of XX have it’s

Yes, insignificant. it’s

is XX% we’re at but -- And recovery, still recovery only XX% that…

range. that In

Yes.

opportunity low, So, we’ve to improve things. an -- Trevor, got some that’s quite have to

grades No, have good time you’ve that. to going know And to certainly keep and I it’s which been some noticing. runway got appreciate Greens, to improvement these continuous at we the

that. So, Thanks, I appreciate guys.

Trevor. Thanks,

The Riley. next Pipes question with line Lucas comes from of the B.

changes to add the have everyone, strong mining how with you wondered community, very is back, that to taken My things start if and in are and on years a Friday, is Thank the the over to place first Good ground like And [Technical step that changes of what and mentioned the question Lucky you. share could transition I’d on and I moment. a Hey. Difficulty] there going on a take just maybe obviously, and my methods. lot congratulations the the at you coming year. investment morning, on on elaborate progressing?

Lucas. Sure,

limiting big Friday at factor the Lucky is the seismicity. So,

availability are time, We about stopes of of our our have not our of of that XX% of available about seismicity. because the XX%

miner. we’ve that, remote the solve other is vein blast the we’re approach, that a so, approaches got how we’re and looking One we and at drill considering. two And do is

drilling blast testing is of idea we’re just one so, the all larger area than or of rather which blast over when where day. a -- big is we drill the we by heading, doing of when each approach, basically we’re kind seismicity the And cut and cut by inducing call what it sort the it a is want cut heading of mine, sort by induced we’re

still something what than can you we So, early what we’re have we’re on said we results see on but There’s lots successful. -- of It’s be mean, days would that’s going that. that the that’s had whether with challenges, do. doing I to track larger

so, I lot I that changing, for And seismicity, eliminate the a don’t can upside, unavailability see see do but that if you of potential of stopes. that

And do XXXX, we’ll course to think would improve the anticipate in one we potential. the through the But of we RVM. mine. there’s So, XXXX, that. going way during could other, start we’re the testing the We throughput or the

You have traditionally what could more infrastructure that you we than roughly XX% have done. produce tons

out So, that? to think, we can add better. would Lauren, seismicity the to you figure like we if what how control to

tens is generated is pounds the a thousands a And seismicity mill. been we of de-stress of of at rounds maybe And explosives thing, terms hundred it of at the the effect the this and performance that delivery work heading it’s began explosive a sort all And in of improve management pounds some about pursuing I a doing and course to observed Friday, round in it’s typical positive few relieve the which that the we’ve of of to some up. the means And in of the method, big blast under a broken to mining seismicity time. by what as time. getting think, a of seismicity. mine round availability the Lucky at previous work, the safety

said, a refinement both. moving quite we’re that on experimentation the of that’s the as and means early the be improve much that done still method, And capitalizing production potential are we’re terms productivity there’s in but I results to So, promising. of now. down path and to

is other add the not the thing issue new that I’ll Friday. for seismicity is Lucky Lucas, And a

You go back a was seismicity to the method XX, change deal mining with then. XX, to there in

XX this an fashion. in some say, had. can years method now now, XX has from improve mining ongoing else somebody And suspect I So, years we issue is this that the from mine

deal with -- so. So, and it’s seismicity,

evolution. in much Very

Yes.

operation course, long-term. continue best efficiency, And, very overview. as output you of of safety the improve of the helpful attractive Very luck, these and to over

I -- And of environment? were in question can development anticipate you elaborate to on So, in how much you second There current the this release. back My at is priority, on the maybe of go just And is Thank terms appreciate properties Montana. comments in and some what you there you. have? want that. a the potential I

Hecla, it’s our Lucas, ounces because large our as silver asset properties, largest being largest of single million as resource. a any priority resource. the XXX big Well, of it’s this for it’s well copper silver At asset, third undeveloped

coming evaluate a to the caused getting for develop there conclusion in ore a what was that -- need I assure so, is go probably of the outside plan decision this more of no And accelerate being can we’ll so underground, mine three for and to not hear say, a But, everything is There to trying you, these best have to get to we place, as right possible with bodies. we’re rapidly haven’t operations the to court assets. of as negative course underground. as existing whether we months mine environmental And that. able come over as Hecla has us you’ll do to next to that okay, or impact, that two certainly our drilling action to a prove we higher than will to that’s can take. Montana But, probably priority course the we the

And the of was challenge with a the to record case, that decision? court

Yes.

It’s the the actually There’s same properties, bought It’s orebody. and just Montanore. the off. And is Rock Lucas. Creek So, two we two been faulted there’s separate companies.

So, it’s been two on tracks. separate

on in needs the property mine mine. production, for the as that necessary would opinion suggest Rock it’s it just the permit a Creek rather biological was than of exploration that the consider And Rock Creek opinion so, court the the to if

being for opinion Forest work for And Montanore. the of So, the the it’s just and Department of is not Service. that’s course, It’s of the decision. biological that’s what mean of that done what we’re fan does on decision Interior evaluating the our

terms timing in potential of And helpful. impacts. Very the

the on ground. this is You to much would what time a a Like, mentioned extra of court… this how case, very priority get resolution high

to to don’t I timing be that of to Lucas, give able have you. it

I as soon As do, we will.

We will know. everyone let

the The from question of next with BMO. comes Ryan line Thompson

quarter Maybe of a first sort XX,XXX the processed? quarter me. ores you be year. timing for for be when of couple to going sort that, just Can ounces walk the just one, modeling Just should those just us of the of you’re and guiding refractory rest questions at through of how to we Nevada, XX,XXX by to

in Midas remainder through The comes short answer blend of as the going hands is, normal when of with their mill. is The material in QX, we’re really in third-party the it material. majority they’re to because processor the it to running the

I that’s of can to over that’s half the so, third-party second ore that majority going you of think, And the anticipate that, year, processors. the

So, don’t know. I

terms Lauren, recollection ounces, of of… you have any do In

would probably the the majority in ounces QX, ounces or quarters of I expect two-thirds QX. in the three of

And maybe sort of level a more of just question. high

and how sort into both M&A were gold seeing sort what Casa and tie just Company’s the to on mines, we’ve market about Klondex revenue You your in a market mines. made you’re just Can and growth? a acquisitions last discussion your acquisitions interesting couple recently some of sort silver, with on that the thinking of of into comments In silver that of you the of on tie maybe of price. make the very gold you silver and peers mix? the couple view seen Can maybe you’re silver of your discussion gold a

always Well, M&A that considering. is you’re something

Lucky it’s we have though, priority, built that’s Friday. highest because growth do this the us, not into the For

grow, will In we higher that. to where mining addition managing method we’re seismicity think to allow better the the beyond that grade,

produce the it We as properties would together. be that also Montana much look, -- as the could two things a have assets like

as you can Rock as combined. produce could as You could the and -- of Creek Montanore Hecla much you from from rest

So, are -- the we those years. number assets last the that acquired of the have and mix over course things we the other of in have

whether this three strength into the see we’ll And also. it’s decade, on view But think we of between well to my that certainly do they And is and decade. silver, have do extent could five silver course gold, so, gold, we’ll view the for that. you’re or of somewhere be production we coming gold because over a as such come going to properties that do market strong the the

we’re hear Nevada, going put And amount to not you’ll exciting. a couple more primarily fair gold silver, of a gold. gold. not but that doing we’re with about in exploration the very of attention is And it’s to weeks in So, it

silver And relatively so, think better we we but do is like metals, we gold. both than like

[Operator of Instructions] question line the from Matt The comes Farwell. next

for with Matt This my Thanks is Roth Hi. Farwell Capital. taking question.

kind the focused inflation, well as on factor that a comment credit, discussion rating really in rating be this there buckets helping me to commodity macro. your was interest rally costs agencies? comments an But, seems continues perhaps of check. if a just if despite question And quick going it’s costs of for a resulted ultimately on interest might Just as cost interest could environment also, sort inflation in has your the by I rate it wondering improvement that, of capital, your you? out rate the concerns the credit, is you on maybe lower of about improve your forward, rates. cost The how is And in are and credit on lower environment to lower of what -- inflation, the

roughly and labor. to XX% cost is think -- Well, our cost if inflation, of with about you between respect our structure, XX% XX%

is and our energy XX%. small, else pretty Everything about of of so, nature because mines. the And

very would that carefully. think, inflation? So, where on are it we be we I watching really exposed, wage are

of we’ve places lots being want of people to be the to that in where have got going opportunities great live. We’re competitive, advantage we

an say, one at up the is So, of things was one the that housing Lucky the Friday, things people was -- I cost going of the and But interesting that issue. was availability will of of I attracting not housing. the

So, want wages on that we that there Lauren, beyond you do guys think you add guys are -- of just inflation? issues the have to Russell, about. specific Anything go costs to

not In lot significant because large exposed say renewable comes power fuel, terms from, of degree to, Phil, of the to but cost of mentioned, have. we that hydro we’re a structure labor, operations sources. A our power portion the for say, example, that you or is

power. don’t the might inflation where there, others be we see So, always generating

inflationary seeing So, pressure. we’re that aspect, from that not

other we’re as some grade mines structurally, high prices companies. I we shifts operate as think not in to commodity underground predominantly, exposed because

be As Russell operations, a of might hundreds much moving said, thousands fuel’s it’s a larger of open relevant a is pit whereas not large but it huge factor. day, tons factor, it

modest. consumption is reagent Our

modest. steel is Our consumption

to So, huge not those attention we and strategic they’re pay things. we And can be but where we protect ourselves, exposures. do,

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So, for... thanks very much

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Okay. Thank you.

Thanks very much.

Instructions] [Operator

the Okay. other Well, are there no operator, people queue? in

are There no further questions.

very you much. Thank Okay.

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conference today’s gentlemen, and conclude Ladies call. this does

now may You disconnect.