Hecla Mining (HL) 7 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. At this time, I'd like to welcome you to the Third Quarter 2024 Hecla Mining Company Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Anvita Patil. Please go ahead.

Good morning, Adam, and thank you all for joining us for Hecla's Third Quarter 2024 Results Conference Call. President Relations Vice Treasurer. Patil, Anvita of and Investor I'm

along was presentation Our that yesterday, with website. earnings release our issued today's on are available

Executive Senior Waller, Allen, Exploration. Senior is President President and and President call Kurt Boggs, Officer; Vice and Chief Officer; Carlos Chief Financial Chief Officer; Aguiar, and Russell the of incoming President Rob Vice Officer; On Executive President Chief Krcmarov, Vice Cassie and Interim Operations

answer shown questions. the under as be to At to those projected Reform of with all X by risks filings today remarks, the our release earnings the involve Litigation SEC. statements. in These come the differ and forward-looking from will we Any forward-looking risks our the conclusion prepared Securities results Act team made in and statements on available and management XX-K cause XX-Q Slide our and other in could Private

call the remind news slides cited with Any related are and management, measures you you if you I in the Thanks, reconciled have release. like would in a by everyone. non-GAAP Virtual will can to call issued the or pass want I this slides Investor to release that link our morning, using under was yesterday. the do now call the Event Andrea. so Good in Cassie. section earnings to

for fosters and the CEO the is to him is But junction geographies he has diverse person success, decades. vision record morning importantly, based successful in and working lead that's X I've I Hecla. And Rob us who and various proven a but my seasoned teamwork this Good and Board to industry experience agreed right together, is my XX operations. He collaboration is President in the of worked well his track that at bringing and Hecla, want the needs. for broad everyone, gratitude join has groups and Anvita. the leader across excitement Hecla and on future. mining Thanks to provides express with confident known not of experience and Rob into both both geologist, years. as having Rob more a by only he what next

to I'll these to perspective with to opening join the remarks, why introduce call and pass he both on give himself to Rob, Hecla. some So decided

thank Well, you, Cathy.

I I X As of of past really and she a Cathy the led for leader have join noted, I've years, and to that's really, to each known And cannot one team. chosen have think primary this XX over better Hecla other the months. reasons

I company. itself, my evaluated and Hecla of presented opportunity understanding this the confirm As

The rich you independence, the mining space strong of governance industry best all the and reassuring. a as were with complementary that Board history long has Hecla are and in leader the skills a considering in their of when assets being attributes. the among silver silver know, And

I'm joining new first well-seasoned the talented to And congratulate a Hecla's let team. be as Operating Additionally, Officer. and me Chief in Carlos fact,

the to quality I'll of value turn is assets. talk mining company bit team pillars: X strength on of the to Slide about chose rests a Hecla. of both. have its and X, I why The Let's to more key fortunate join the and a Hecla

highest every silver from mines with and industry, our setting decade These world-class among really Friday. nearly grade our us a is are Lucky the and mine extending at -- team reserve lives apart in decades exceeding dedicated, Our assets X in are talented the peers. and

is innovation. culture important of Hecla's Equally

it fact, Friday. and and to And to the in So this closed I'm method tomorrow for the meet underhand method who mining example, action. at in we pioneered pioneered to visit Lucky there see implemented excited people bench mining

generative Creek Greens programs. at recoveries AI and throughput into drilling boosted also and We integrated our

standout maintaining over Hill, our committed example our our the culture year responsible for ago, environment operate. valuing A contractors First the Na-Cho which of input practices. is to We strong employees, to Nyak this safety license we're crucial is long-term commitment the With ESG success, building safety entire where and we invested Dun. district, stakeholder the this and our in extends foundation prioritized production. Keno and government remain and and of practices, so improvement to and a on to Nation And social fact, exploration Yukon and and future from operation the engagement collaboration of the of in environmental in continuous operations

potential. exciting most exploration Lastly, is attributes one of our our

mines, Montana, shareholders. the Beyond our With Russell. exploration hand Midas and in like call and Libby our I'll over Aurora to in that, lasting could projects for active they value Nevada create

the Slide Thank we've quarter, you, quarter, the to during made during priorities the meet want but million this $XX have more start Carlos silver to will more priorities puts these us quarter, progress speak year. investment the highlight quarter. producing approximately we than our during during XXX,XXX which million allocation capital total that third I'll capital track third for ounces, the similar our in quarter, year in on the at almost on ounces year. in on I of second on our invested Rob. X.X million over this the Keno while the with X. We guidance mine provided previously bringing Hill $XX to And to

million At ATM environment, us million. giving had opportunistic million $XX revolver. we a net cash issued to quarter As on balance we the on down market $X an our equity program hand, we revolver our positive $XX drawn in of end, under and cash pay saw

our to to and our in the ratio in With improvement the deleveraging quarter. prior EBITDA, our compared we've seen from adjusted X.Xx improved also leverage revolver X.Xx net

Slide to X. Moving

the see, X silver and $XX.X $XX.XX, total split we point cash With strategic on The a to assets $XX slide operations we quarter last that silver. flows our with ATM this of $X.XX additional paid from our the sustaining investment and priorities, deleveraging. pay growth with we price almost during and cash dividend. of capital. million silver-link our last almost of in the at under down owing invested between to million, our which our strong $X.X realized Slide revolver, generated million consistent shows capital our half further raised can you the quarter million, price per used the dividend share $XX was on is includes demonstrating our As

like highlight As X, to to Hecla the exposure move investors Slide to I'd gives we to silver.

XX% revenues. it of our see the a silver As greater price, we our to is share derived and from silver contribute as revenue increases of in continues

the Another first what also in revenue generated interesting small decades, development copper. is the from amount quarter likely in a time we of is

and only to further payable projected metal. similar high-grade able Not conditions, zinc content terms lead base the now Due in to in payability this results to desirable diversity continuing continual benefits also content, continue This value being in and provides market but changing is but it metal we to development the Current as the in metal to from of copper this silver to copper now opportunities to seen explore for precious smelter of to be a is concentrate product. years feed and been significant, adds monitoring copper. contained its zinc, are impact. increase we've from proceeds transition its over and Greens responding of product Creek's

our our and the slightly to the see And less from primarily We third per This to as a I This funds quarter, remaining revolver. compared due was noted X.Xx production. pass cost at Carlos. Lucky margin a significantly the driven a during the EBITDA, is of ounce consolidated to call adjusted realized driven silver were AISC, and primarily price previously, primarily provided insurance continue XX%. quarter, our all-in leverage net that, proceeds where Creek Lucky to able to than and Friday With quarter, to Friday Greens sustaining we $XX by receiving deleveraged from increase strong the which previous ratio of during by margins ATM the mines in lower claim. the reduce million our I'll the was higher

Slide team's will the downtime. response a was Greens of variable Throughput I address a of you, quarter maintenance, where issue, mill flagship due maintenance per X the produced the X.X to drive. fourth forward lower we day helped the and The SAG portion quick Greens scheduled Creek the of Thank had for mine. Russell. brought Creek of silver. during we million X, frequency failure unplanned X,XXX tonnes on ounces days of start

which but are quarter quarter, Despite we of inventory fourth days silver as downtime, quarter. and all, X lower $XXX third the quarter, unplanned the to prior concentrate to were in down higher compared had production revenues in the in quarter. in at the zinc of increase the were X the In expected we on were build. lower grades drill quarter second million Silver

production. $X.XX due silver and cash production costs cost and to all-in silver and lower at by-product increased remains Creek sustaining ounce stable, respectively, $X.XX, to Greens cost per While

win, and prices $XX sales, we concentrates. $XXX than higher Russell free in life in the better small as operation. copper our cash generation costs metal And coupled of in with flows. resulted of quarter, mine This Strong a previously a reserve which should mentioned, as generated in million. more economics stable flow has added silver strong this add payable mine million the long cash already metal year-to-date, free A

than our of per gold production also high shutdown cash lower million cost for and as the offset Guidance metal silver lowering to ounces. all-in is zinc sustaining we to X X expected unplanned ounce million lower of cost more to are guidance because Primarily and slightly days, mill are for revised X.X production. prices

SAG the our While I this very handling impacted our slightly proud repair am has team of maintenance for mill unplanned expeditiously. production year, their

mine, innovation-driven million growth. for X.X silver and X Creek Lucky produced a year. silver Greens of finish with strong premier it year. million produced positioned our the the Lucky to over months the operation Friday, ounces is of Friday flagship ounces a X.X

was mill months Production lower Our production and the first to quarter-over-quarter throughput the the over years. due was lower over XX highest lower X past grades.

quarter, second throughput throughput history record the last mill mine last after it over X% the the the was quarter. in a was While lower highest

cyclones, ounce costs due higher primarily trended sustaining parts equipment mill and were $X.XX will the a throughput maintenance new higher contractors which all-in us from and quarter. mobile silver and and cost per of stem achieve Cash in installation $XX.XX for consistently help higher of and cost throughput. Lower the use higher to respectively,

$XX.X upgrades to to headcount. year-to-date Costs for impacted secondary We and as the investments forecast also quarter escapeway. method. quarter the key in [indiscernible] year infrastructure achieve development have and included recall after repairs year right last expect UCB preproduction drilling, expect totaled in and contractor we the the to a due costs Capital the the million fire lower in mining significant fourth this now trend

million The million the during cash the quarter. insurance mine quarter We flow $XX million claim, Lucky of completed remaining million generated the third generated $XX.X year-to-date. Friday in $XX $XX.X the free with collecting

cost in production reflect We third the to Lucky but and production quarter. revising higher Friday the for are our cost and strong lower-than-expected guidance

guidance Our is million to to production revised range. sustaining to in with X per costs ounce now expected of $XX all-in be ounces X.X million $XX.X silver

the $XX we expect And quarter. grades Our invested capital second Friday was million at lower million mill for and cornerstone in $XX quarter the $XX mine grades, to million with is affirmed the guidance fourth throughput by asset. year-to-date. throughput impacted our is Lucky improved and while

in our mine to increase for over UCB investments to and have Our million the the the X a ore this the coarse producer including mining ounce past the foundation next X years, mine hoist the mill to from the over hoisting decouple method, the the decade. capacity bunker be mine established service

cost the mill transition all-in production planned, costs higher $X,XXX, Executing to third in XX, Casa due guidance $X,XXX surface both plan. Slide per of Casa On lower than ounce on than reflecting cash and range, primarily sustaining ounces grades. produced Berardi quarter of lower the at Berardi. the XX,XXX

the extension stop-by-stop remains Production costs Casa remained containment. stable review the continued detailed of The the mine on cost to underground team as at further team waste focused has Berardi have stopes. analysis

underground mid-XXXX. current operations we in in strain prices, the gold the expect cease Given to

are the our of capital production, the cost mine, reiterating Berardi guidance work is and not at Casa but We done.

production last in year. progress tonnes months second XX% surface comes sees year In next XXXX, first during the significant the with of pit. decline surface-only the should this waste the more of the X the mine we of where underground to pit Currently, to continue year. made the mill feed compared levels approximately have transitioning pit the and half XX% expect once operation XXX of XXXX operation expected moved XXX ore production fill mill. We production to to a mine the The from we until

with mine Crown We west expect principal long-term grade Pillar value the of and Pit. creation a higher mine

we years. the lines permitting, mine and Given dewatering around hiatus the X above production at time stripping to of be expect pits, the the

generate free to in once pits flow the expect We cash significant production.

it, mine of portfolio ahead this alternatives. into life mine our mine reserve strategic the and other to do we long and fit a have has mine The potential overall we work at as more evaluate

due in Hill ounces. the at days the dry third operational construction as for Mine Ultimately, were operations restarted received, a the for on work completed to the produced XX largest Eagle the we silver construction first Canada. and XXX XXX incident year-to-date of authorizations and tailings pad in facility leach mill and permitting delays in of design per was receiving the tonnes the October facility the production ounces all about X.X the million months and for an Hill, in result stack June. Gold of far quarter heap producer at in to late approximately XX. the Keno by authorization related Keno XXX,XXX X for tonnes year as throughput was mill quarter with the This not per day day

not as ounces ore of While XX, have activities. the ounces. million mining of an million mill continue we And X.X nearly we X.X silver, stockpile was including of in October mined operation,

During filter this presses. downtime, made we and the in also secondary the ball upgrades mill

expenditures frequency of want reserve dry in $XX.X stack which practices. XX completed to including is guidance XX% our a within from over the tails, significant development of tails is batch to million. Hill were cemented related was to in expected is of safety, will injury which team of mining underhand Hill quarter, environmental were permitting improvements investment $XX in I congratulate and a Keno range on and construction has and changing life at million Keno million now has to million production for delays, safety ramp-up overhand improve been productivity the instrumental and all equipment underhand X.XX, mining, $XX mining rate to Capital For delayed purchases. decline costs to $XX months construction Hill method plant, XX mid-XXXX. Transition Due XXXX. the XXXX. rolling years. of currently mine be the the to expected making Keno in costs, now

to about the operate Our Nation and decade that, for and These the next strong Nyak among deliver with Kurt depends ability relationship at Keno to continued the value call relationships successfully government investments operate on, First Yukon of to Hill's we and Dun. factors, are Hill. exploration to a With the and in Na-Cho Keno Yukon other long-term speak critical pass results.

contains continues the diamond Keno resource Bear the drilling Hill. mineralization and underground Flame Slide surface silver at to significant high-grade over mineralization drilling is district. Carlos. Birmingham and systems. drilling target Thank XX our & you, on areas silver plan widths for the maps high-grade intersect in vein mineralization substantial potential focused Underground the of and extending Moth both This and conversion highlights in

in to grade Slide through Birmingham times #X right. intercepts the show the significant XX.X the to received during Football can through XX vein, vein include XX.X interpreted previously sections the left These by silver see you the longitudinal silver silver & feet. areas per lower quarter Footwall as values At contains were over tonne thickness contoured containing vein values high-grade grades. intercepts Moth that the the Birmingham ounce and Flame and widths

Drilling At the in intercepts base. XX.X information is Loft wide and previously positively over resource areas barren tonne X Vein to resource silver high-grade ounce Flame geologic both and in XX.X more has and feet. confidence be mineralization silver to and will includes in that models drilling and per were veins intersected our up impact interpreted providing in

to continue understanding for of prospective geology discovery multiple Birmingham our exploration the new will potential intercept, that, Elsa deposits. have were demonstrate target Townsite, and add continue continuing Silver each With of With surface and the on and the that to areas high-grade large the the Deep, we targets, structural to Cassie. potential to our this active back These mineral Inca remains pass significant. to drills district of are the target silver I call highly Spoon of target the XX-Dixie, property including areas areas. Three test also the Birmingham

Thanks, Kurt.

Nation's the of other But and mining. why in Na-Cho of questioning to in discussing and Eagle world-class. Nations community are stakeholders the are supportive and the been speak Gold the generation its environment generally is of now Yukon. historically about all investment the increasing Hill local minutes more guidance, government, our Hill at Keno we each Nyak The traditional has some production. external and in I Dun Mine, tragic the like within just events at before And So strategy, the Yukon few the First which spend the have specifically emphasis on First I'd like challenges, Yukon given while is a Keno territory, June geologic

We perspectives mining our of the all is to for Yukon successfully Yukon Nations and benefit practices stakeholders. the sustainable environmental and premised on stewardship, the government First value mining ability in the of and responsible operate

are advance As expect near XXXX use at our Birmingham prioritizing improvements treatment such, at including Hill production the will permitting new to and plan cemented ties, community to term, we opportunity this XXXX strengthen levels. water the Keno stakeholder infrastructure, to We at and in plant new remain tailings outreach plant. and batch the we

mine Creek with seeing, the and as portfolio. Keno The life and With Keno at of exploration of we continue value on a driver Lucky grow. a the we of will assets in mission critical long-term this that in our base, Hill confident remain reserve to we're Greens is success the the operation Keno geologic potentially we see to are join Friday district cornerstone Hill strong in And potential Hill's Yukon. why building

to on talking So XX about moving Slide guidance. and

Keno affirming Hill's described and before, Friday silver silver for production. production our lowering we're guidance Carlos and As Lucky Creek Greens

while unchanged. guidance cost guidance. Overall, our cash cost sustaining increasing all-in We and consolidated gold cost are reducing Lucky remain Creek silver cost guidance and Greens also Friday's

I well. before the I gratitude our affirmed exploration call all questions, And guidance dedicated just to want and express our is Capital employees. to open to as

Your instrumental and Hecla's that, has your vital continued strong shaping operational future reputation unwavering and commitment establishing success. call in operator, under a successful stewardship with to dedication to to environmental safety confident role will And play that the questions. I'd leadership. in been Rob's We're like open a

[Operator Instructions]

Pipes comes B. Riley. question first from Our Lucas with

is My wondered side but itself. positioning strategic Great and congratulations. on question touch maybe see. I to early, first a is where Hecla Rob, the

a whole. as been That's dimensions, America X I've of think versus thought versus it. I how versus base about North silver, of way precious, a kind of gold Americas traditional

think be would sitting be matrix? I'd curious you within where so Hecla that And

very thanks Well, much, Lucas.

of In me by just out saying X and mines X really terms the let that haven't mines start strategy, flagship we've expectations. met our got

And going to and on focusing so portfolio measured production optimum path a to really making and is in growth what's maximizing really, our that of quite on Hill the Keno value particular, really be extensive and follows focus organic an profitability. sure

And our anticipated. reaching that take we important most a several of support input. and Na-Cho bit Nations our and release, than So safety and the and of compliance is going initially coordinating the Dun in really stakeholders, of improving important our First an as some and and people, importantly, Nyak the with of projects, completing point precondition to environmental really longer is looking work the their most Yukon obtain government remediation to capital past

cash Moreover, there's all focus going on an flow of our renewed assets generation production and at maximization. just not to be increasing

U.S. and to want right spread, the Canada focused we stay on geographic now, Regarding

mines Mexico, large to country, permits in these a standstill. in of granting has operating While even on come deposits and mines that

cash conditions prepared that going to And improve. you not safe the production are risk, Hecla. prefer really right be required security now, investors obviously, long uninterrupted to reassured social path the as where speculate and focus and commitments, We as continues we're our for that look unacceptable a can there's flow that's obtaining jurisdictions so license. at the And on the become when and clear meet permits we the have to our additional to

So to situation internal right we're growth focus continue our Canada. assets, on Mexico. in own we'll going the continue U.S. to now, But evaluate in and the to

Is operational appreciate is I towards helpful. think improvements, investors that point And into very flow, there priority should is also color. the about cash Or a the this business, CapEx, it allocation? debt it how back exploration? be of reduction? on Rob,

Casa Well, But allocate with the that will comfortable due we're in not Hill capital that intention optimum levels. obviously debt, to our address course. and Keno to to Berardi are sure our make is performing and we

those a the using and Friday Creek those will And of also little mines clearly that But at Greens if in Keno continuation as Hill of mines priorities, mines as including bit, maybe one cash our exploration are well. be and flow from we're business our add to well. I just Lucky investing continue the investment first Casa the needs as clearly, invest to in of

would of that was, go towards any context higher the you the the probably operations. budget necessarily where should to excess in first currently, sheet. maybe go drive Is metal what Or not prices So towards reasonable? to? would balance and foremost It

we would will at I look to invest in continue it exploration. now, right capital both our operations,

undrawn, cash more move balance. wanted You such paid almost so we quarter. that. the to really that that, we to were net during to do they're as revolver our of forward, at off look quarter, saw revolvers as we're right? market great, We we'll conducive to to cash, the build because able end the -- the get net revolver look just are was but best -- the generate X we the do we we'll And And

bit But to assets. So there that net will be such leverage had come between is building like continues mentioned balance organic going at cash our ratio balance of a these future be a down. Rob growth, that, a to

in need invest them So we'll to well. as continue to

again congrats team, best all the luck. Rob, of to the entire

.

question H.C. Ihle is Heiko with from Wainwright. next Our

congratulations Rob, your on appointment.

you. covered point. for this on around As I have at very going a talented to I've Hecla decade already you want probably know, say you a just team

meeting and I on this know first also day. it's Looking Carlos obviously, promotion. forward in you to to your person congratulations

maybe can, not more maybe if the of what far? bit And maybe that sure have costs answer by little some would be give but can in question, a bit general labor more just of otherwise, you great. quarter a but a So general seeing. a fourth little you of I'm been you asset, And granularity you're with if even thus seeing what

hand that over Thanks, and to Carlos one Heiko. to going I'm Russell comment. perhaps to

our contractors. cost includes and that XX%, usage X mines are X of in the close labor Well, the to of

jurisdictions, you of executed. projects as know, the and capital So the quarter most are our in to third according

So time, during the we that's the period are an bit we projects. of -- once near And on use last little for course, we the people of of that have executing in drops quarter, extra the in are construction a future. in expecting why the so expecting a decrease contractors

don't I add expect quarter. mention add that done of percent is And, lot the larger see one is and drivers that the that. the off both in fill was But of contractors labor mentioned, work fourth internal Carlos to of release you our of some did the a have labor, top what that. labor in But whole was XX-or-so did as contractor on complete to to some in we our had then quarter we third and the we as mention come roles Carlos cost

here. enough. disclosed past. then just of the on today, Rob, some and I with little did bit question background, building Googling And obviously, Hecla Fair your last maybe your of earlier a

should earlier, that appointment. even your for the that, in M&A of I about talks I stuff there's but the are with there Board changes But -- talk any we that firm. meaningful we kind expect capital talked to to regards assume besides longer-term future, Let's allocation see? been for the your about before plans some mean, made

we M&A to think I With And the going engage M&A, clear are regards that to continue to criteria Board. are be. most I'll actually on important it's really with importantly, what our very

have some to parameters a that have discussion, guidelines we'll that. and approach so and And disciplined really establish

past really thorough In in been M&A, I've have diligence. due life, involved and it's fair of bit that my we a important a

the So we're a existing is to strength. that done informed our we fully of growth Board. yet. can choose really full that I believe portfolio. internal there only thorough from position due about I And M&A existing diligence not to our do subject to going on spoke And best of assets value and and a maximizing if add a proceed, focusing by We're we that to and the value

introspective, to in consider then going the are And be it's really, very point the more some future, all our with at and we'll of a So the performing. Board blessing sure make clear M&A. assets that of direction,

do have Too you? assume early. you I yet, asset don't a favorite

because mean exploration hard say, have Greens slower really to a Creek I than asset. just even not there. do. to we've we fabulous expected, has Keno ramp-up it's love the it's been love I though -- potential I a I Hill

I I fact, as that's And in like scale Yukon potential. district got well. exploration think the

question Parkin Bank. next Our comes Mike from with National

Can you just Keno clarify at how long offline quarter? third the was in the mill

quarter. down XX were third We days during the

this like Okay. you QX notes kind in And then of year. end previous of tailings be that with the tailings, had your the capacity would met the by

been add? work? further construction what able to able wait and And like you you're weather spring With resume of doing, of kind until Or is year-end? it you the are into dependent have to to capacity the still do you're having work kind to

with end continue and the we we So the to following this of tailings And year the to are at X to stack capacity end capacity going current year. expanding are over the going of dry operation. continue years

Okay.

you're So dependent not weather restrained?

No.

company? more get take is is once bit quarterly just you a the then Okay. earnings, to Hecla foresee sites, of what broader for you've one you're more update giving thought Or terms on that it other get had to here's the and terms we'll obviously Great. market And really the as path Rob, a the like quite in with one, forward But I there of. going visit color comfortable plan numbers, the thing? the of in you do that on updates time a like assets, to thinking given into of like get come to bit you've kind be us of where out with piecemeal

It's a question, David. good

As I'm weeks going in other you imagine, next be intense onboarding. can through operations and been X the Casa, visiting an to I'll I've X the actually. already

the makes picture, we'll Day time, going Friday. I'm an tomorrow, think is a Investor I'd more to fact, vision. when our some at Lucky clearer articulate thinking fully it evolve. Once And that have to In sense, get going like to I and

Okay.

been You massive project review? a loose thought to do projects tours core there pipeline And rationalizing guys in any letting of a and to potentially is have assets? possibly much talked site hasn't towards the market. those about Are that noncore portfolio of post that down quite some you the planning

Yes, of absolutely. blessed can't is all we full while them I cupboard projects, many mean and service we're really justice. and them the with do

been that to the to the And and will that managed of medium-term about near-term really in it that hands be on perhaps might operators things and the attention the is value deserves. probably focus other I've Kurt who ones best deliver talking the give those so of one can need

So yes, the and best rationalize very on focus the assets. will portfolio we

Great.

forward the updates aboard. and Looking to welcome

with from Our Sean comes next question Wondrack Bank. Deutsche

repaying It high-yield was [ just I had Hecla our at ] a couple of asked months revolver. about the conference, how was ago serious

coupon? fair really to with that made So the was the nice that facility? comfortable is debt. the opportunistic earlier assume to size on call, There that Is see Or paydown referencing of to a was the the there. more comment not referring

believe the that over that But is things time, something is to we've of do ratio is over necessarily kind high. we to delever. overnight the do to look what want market tried the would that isn't leverage time, necessarily. too that do One we This to of message we do larger

But previously, and at in take saw to the cash to I we balance balance, and also look we'll our place to bring the come the that we like down down. projects it with look will needed like look had to And so I assets. then the X.X, also but to that out said earlier development build assets, mentioned X.X, the capital the and investment that exploration,

of is formal And a there any leverage operate you'll band a net target seek kind more or which to within? at

with build the Historically, of which in Historically, we're to thought. yes, we're Certainly, position able be back be should us see prices again. things environment And that time. an helpful those you at to we've where said though, the that run take up would less we I'd much go Xx that Xx, making time. than less back, or like if level now. Xx,

Great. to can be to early. any year, not we will different And that you I on believe then is about a I'm think sure there reason it's that materially 'XX? into as know CapEx comment relative moving if next yet. little

kind et our next detailed come with out we it Yes. year. expect out Keno full we'll next said would guidance suggest we'll We've year. Hill to directionally as be, of early next those for details, come year, where I goes guidance But with cetera.

Our Joseph Reagor team. Capital. question line of ROTH to the Rob, from next with comes the welcome

on just maybe already ounce So of guys a as the lot how method, I that? Keno cost questions but on, a touched savings guess basis expecting much switch Hill, from my mining on you you have been are per

evaluate, We change is priority of safety. method, mining is the main the have But but going about know. the main safety. until propose to estimate because the top in the of the need still which we is cost don't the We don't occur XXXX. propose main That's any as reduction to today,

the In Nations environment? come aren't, environment anything and First one or then. costs that, that the question you price it consider issues need current in anyone's Is to be else where picture reason curtailed down in ramp bigger that? there don't due risk a a significantly. certain be there price the there, to any asset production for able Or would is maybe another, event would eyes you And that up Okay. whether or to guys

Yes.

I the at there look infrastructure, cetera. safety, things long both as district it's that And need as in in Joe, invested mentioning to Rob going results. that et talked And to asked Yukon a he we're practices We view our his term. I and Yukon. We that on, on community, the number the and was this and it's is clearly, we're that we slide about with a operation maybe to of the favorite think, ways, it the Yukon. last remarks and I be to the even what I right? do believe his presented, in, well we had expect asset about a commitment see we as make was quarter and that think, think a relates little those ago, do to those expect as think infrastructure, committed investment we bit both to environmental for That's as Cassie's we're

just picture Obviously, might cupboard Any a a adding or the of the big whole these kind debt thoughts empty on then we And of you a of in about assets? longer-term time is on reduction see when focus. enough. these kind bit Fair Okay. company. to questions dividend changes about policy of line guys little

exposure dividend the that. are speak to like And our that It's of yes, gives think clearly by first I exposure. dividends our silver. shareholders that shareholders on The the we Well, approved policy, I'll -- Board. to many believe, your point

as -- we goes. as how exposure that And it's there it discretion to give silver. result, to Board does do a a so believe that that But

Rob, let cupboard, it to to answer but relates -- probably defer think maybe and defer I know, you that's I'll I don't that. As emptying the you to maybe

think the to portfolio. it the relates talking the of you're As about -- I rationalization

the Yes. frame time Yes. is? What's

suggest, what Yes, opportunities when right? I be it I will is arise, would guess,

is mean I Yes. assets we it. of what on I the and those right understand opportunity Really, some visit the priority is would focusing personally and should now the to whether be operations. like

So sometime I during clearer have picture. I'll the, QX, a perhaps guess,

now back remarks. call will to over the closing turn for Rob I

and a forward thank we everyone, your concludes Well, day. This Have engaging the questions. for again call, you to good with you, look soon.

Ladies Thank and joining. call. gentlemen, today's concludes you all that for

You may now disconnect.