Pan American Silver (PAAS) 11 Aug 212021 Q2 Earnings call transcript

Thank you for standing by. This is the conference Operator. Welcome to the Pan American Silver Second Quarter 2021 Results Conference Call.

As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions [Operator Instructions]. to of conference Investor like Fisekci, to now President Vice Relations. would turn over the Siren I Please go ahead.

call participate that Welcome slides and to released a and available the copy Media are XXXX our for conference invited Pan American market news Silver's today's other Second results after of participants call close mode. the a presentation listen-only in Quarter yesterday's call. are We to and on constitute our MD&A, release, in certain Annual information our on and presentation, Information XX-F That statements review the Please in today's material our as recent factors risk and included statements contains call forward-looking Form. the website. in release as statements information. well Form most described and and cautionary news

are American turn will President Officer, Emerson, VP opening And for before a Pan from VP and brief Chief Michael Technical Optimization, Development Steve Martin today I over questions. the call Doyle, Services and the of Rob for now results Wafforn, Steinmann, to the Operating Chris call overview Michael the Business Financial call Busby, Chief Officer, Senior Process CEO, and Joining Geology.

COVID-XX Shahuindo, months or infrastructure production constraints as silver well protocols ventilation gold of Thank and some have past results. and We lower Colorada, mine ounces and as the limit our into grades, gold you XXX,XXX Dolores related today higher the second-quarter by joining XX impacting Dolores X,X workforce production with million silver leach ounces timing constraints for discuss produced for was been heap silver at La us to in Colorada failures. levels. of ventilation at reduced which of ventilation QX, silver the sequencing at La at The following deployment sequencing

became construction previously level raise the As from deposit. we in surface meters during QX the the have ventilation XXXX. the to in raise commissioning But XX on higher-grade XXX-meter the the blocked East bottom of a Candelaria primary completed new reported,

cleared into throughput quality portion successfully the fully ventilation most shotcrete, that the re-establishes and means the blockage important to ventilation this several in overall pleased at levels commissioned deposit. of is underway will very ventilation flow with circuit the we valuable to this the now that ventilation are We XXXX. other raise similar Colorada rates rate The development had July, the completion that improvements Mine project of we to to increase. La enable in along be

During plant to of flow to working early we for to XXX% XXXX, we development also mine, of a further will than deep current to compared refrigeration rehabilitate levels. the the high-grade the in early ventilation construction the plan areas ventilation QX In overall XXXX, overall levels. flow other deposit increasing eventual XXXX which advance by skarn rates to expect to conditions XX% key enhance rates raises, X increase ventilation higher further XXXX

and Coal in ground deep As we exhaust early which will should the Colorada XXX-meter QX providing grades be XXXX. be ounces, infrastructure exist be of against We yesterday skarn mine and robust, the solution for from in skarn of failures. $XX area into completed La deposit. to of X.X-meter to the through development a shaft approximately northern insurance higher expansion deeper the the ventilation ventilation above the skarn believe for portion this mine, forward cost concrete-lined to construct mining area, the that benefiting was board project. Dolores in production XXX,XXX development be infrastructure future added premature extended the million, sequencing future mine of the conditions new the durable edge of diameter challenging Our Arena. can the shaft estimate the look and new the of and eastern at approved La La Each deposit, ventilation to the shafts the Colorada the for ventilation We in provide that

Shahuindo. Dolores a at had XX,XXX gold in-heap of also of inventory ounces We buildup and

more the $XX.XX, the XXXX, and and sustaining QX lower San per the ounce included silver reflects primarily were gold were QX, be expect That's adjust we rates were half capital, critical materials by-product our sold. Creek, cash beginning of for ventilation quarter, the stronger operating run rock from to grades, cash as during in Vicente will tons of includes The Silver all-in at the credits costs and cost mined Gold We're higher royalty, XXXX. $XXX the all-in equivalent of all-in incur impact revised reflect $XX.XX the benefit at The contents. mine to be work the increased rates which in increased stockpiling evaluating half ounce mining expecting costs XXXX, this gold heap blended maintaining cash that by leaching. of projects segment costs We continue for mine, XX% wider production, mine. XXX,XXX and second most expect partially grades Dolores a about higher we with and gold of operating refining section at cash throughput move blending reaffirmed Shahuindo, costs and on Creek, plant during the the guidance move sustaining rates in of production to protocols lower charge be half production into increase we workforce sustaining contribution gold La in at in the that of delay and will the into increase production fine-grain rates into year. Bell placement the in production we are throughput but we increased funding resulting discussed lower increased incur coarser the and of second also XX% from adapt segment with with of recorded the mine Dolores this increase Silver offset, to mining plant our per disproportionately of an segment current as costs underground The do these reducing window silver while per sold. the and sequencing gold stockpiled could in the waste at Overall, in production $XXXX ores process rates treatment support last to ore and an sustaining clay XXXX also XXXX, La door during of which year late in pit estimates. continues extensions over X% this normal we have and to in COVID due XXXX of a costs we the our health certain mines. were lower levels, additional We mine the second ore our in metrics material XXXX from our second Colorada. mined heaps, costs the are approximately safety, ounce affecting XXXX. additional May hinder of segment of into which annual our line compared to our during and and mines, QX quarter, XXXX protocols potential the to $X.XX concentrate to fine-grained And fine-grain of higher section the operations to ground protect pandemic later to and year. At has system Bell continued and plan, of from Shahuindo. deployment the in we host this These the grades to on agglomeration costs supporting execution half for the Arena to segment.

a half of first XXXX, along with During the seen wages, we energy, cost higher-than-expected escalations Canadian stronger in Dollar. and consumables, have

billion COVID-XX of to to this of many over providing of are XXXX to occurring that and next low to virus. However, is by COVID the at X of jurisdictions. higher countries Canada's Vaccination doses middle-income campaign. to the will levels course expect diminish XXXX. The end are programs UNICEF the to operating leveled leading access the of we appear campaign two these our In equitable cost aimed in of committed global, distribution quarters, QX, vaccines impact critical off through A for by vaccines have are Vax vaccination July our COVID-XX support guidance maintain Give and combat the we Furthermore, of we in year. encouraged us the our

Inventory portfolio Maverix received QX. from exploration to short-term working Revenue of year, both inventories and and use concentrates assets financial This the received we first majority in heap Turning of capital, sustaining recorded dividends, all stage in June totaled Revenue our anticipated by are of sale half $XXX the million and $XX half additional royalties business, the After XXth. made revenue QX on of capital non-core $XX the and flow leach $XX million, buildup cash asset... normalize of XXXX buildup resulting of of the million up a sold results. rose and impacted of been the which a sale [Indiscernible] for cash for will transaction million. in million million the cash which for operating July project funding QX. Waterloo has $XX.X We of requirements of nonrefundable $XXX.X of to million. a the build-up second when in to in million The be improve to deposits an our closed early in Waterloo the and inventories investment totaling includes $XX.X $XX.X in

economic in marks deposit catalyst QX, are the late in the for operating XXXX, during third future postponed to in the we the continuing of cultural position, production due $XXX the per X by asset. the Escobal a a on or is our from consultation been to Colorada, in COVID This retained our in the as XXth, cash the XXXX, earnings Project. will months. the I XXXX income also now the a will We largely share. ILO $X.XX improving Netsmart now increase requirement announced reached any common strong Net for model. an or and process first prepare At for quarterly million to main $X.XX third was X share. $XX.X this million the agreement resource portfolio. financial Escobal, been on provide XX share past meetings held QX to part A have million. Adjusted provide XXX flow $XX.X in Mining has dividend driven At dividend to originally strong spiritual preliminary Based XX% situation to operations, operating August The assessment updated update work with La for the of was Guatemala. QX, per mine. on outlook pre-consultation our meetings in include brief $X.XX mine royalty X% study which a income impact per of skarn the and hike meeting scheduled solid the July we

Navidad started has on of we process broad project consultation the modification been XXX, bill of zones provide determined. open-pit to yet participation. the unable the Escobal not the legislator may the have dialogue mining At to court-mandated any But process to with the timing that not of process the And do yet Argentina in the certain our law the know or mining that province. debated. on encouraged consultation we when mine, are details has We Chubut, are restart potential in allow the voted as be not

However, that past The has at due resources exploration mineral reported Silver prohibited market entire reserve ounces. the of And restrictions. reserves also was XXth, the are mineral program rejected activity mineral reduced the year gold the X.X by legislator ounces. in yesterday's mining and have XXX our close, XX% province. estimated COVID-XX to million June at would as XXXX. reserves we After the million over estimated bill

program ounces La we was and the replaced of completed Timmins at also mine through of exploration at of the replacing for restrictions another Arena, new Colorada impacted the exploration extended At discovery gold, by skarn. ventilation ounces we reserves, La La the life Mine life Although by of mined. Colorada, mineral ounces At mined, of another XXX% activities. year. year Timmins extending planned XXX,XXX XXX%

million to of resources, improvements ounces we of ounces including large drilling ramp ventilation inferred reserve this us skarn silver would where up mineral over long-life recent XXX million circuit mine, XXX and exploration the have However, deposit. at the allow to the

and the Shahuindo For June gold ending Total ounces production silver and reserves of of estimates, ounces ounces XX,XXX the reserves of on resources were XXth, cost of impacted mines producing XX-month of to reserve ounces Pan mineral at XXXX, ounces to s. American's replaced from cut which XXX,XXX mineral reserve period based X XXX,XXX depletion of and geological reclassification reserves by mineral total million from gold non-core the containing gold is of contributed and mineral of XXX,XXX a interpretation, divest. million gold, silver Pan resources call reduced gold the intends (ph) open reserves mineral project ounces and to Company one with largest off world. for grades. X.X would La The mineral of that, the XXX,XXX project the reclassification La in by the reserves resources And like Bolsa the American mineral holds to I to that questions. Bolsa reserves ounces... silver

Thank you.

We answers callers the will queue, Operator will queue. and session. question now join as question the Instructions] may you [ We Instructions] moment a [Operator for To the begin join press pause

The Tyler from please first comes with question go Langton JPMorgan, ahead.

morning. guidance I'm Thanks a the just your is need you're at guidance, currently COVID quarter questions. to for maybe did now from from you Manantial taking restrictions. impacts COVID to how ease? La I little Good Colorada continue COVID to could the understand that versus a ago. and start, to sensitive sort to trying restrictions talk just then, bit And to my hit about seeing guess of you especially

morning, to more on on operations. Yeah. will start the it to you pass give I Hi, and Michael. good details Steve

in at XXXX. As straight assumed quarter un-impacted the line recall beginning every in quarter first QX with of you restriction the easing the a of year, the we

life is straight lines, that. we not know Of course, in going

and a And we impact for now QX than definitely most in bigger quite the think maybe we assumed where of with still so improvements rates places we We sure strong see saw some beginning I vaccination impressive QX. at work. in

staffing get still it impacted think more everywhere give details. be us, Latin else, for and trend is follow some I America it and and but easier the just can maybe will So there Steve then in similar the us will hopefully

we workforce Right Yeah, protocols roughly I I Mexico, We point. into rates high related rates. those perhaps start finally now, in get It's clearly Michael. Tyler, can just that around XX%, think up Argentina. restrictions we're just like XX% if as can can relax if XX% vaccination XX%, probably and to the at our North to in add to vaccination see America as in COVID to down we

people was we During we time we had cases of it a workforce. to we very the turn year, coming gates to the and levels half first our had of -- stay around see indeed had to lots the sensitive us and of did off did high of that for that

rates, the optimistic and a lot. -- second will it in had it hoping said, our the was as picking into So move the current Micheal half definitely we're some half, we are during as challenges up easing see vaccination we we're forecast. that that first projected And the we had

we costs added transportation, assumed see that Just COVID the of And year. this. the to up, quarter our covers we of so work million quarantines, round probably all and around as all beginning per really additional testing, the it cost $X at

what on the So I track side, we beginning the think much on year. assumed of pretty that we're at

how about improving QX, there ventilation and guess, And then and now, sort improve? QX, helpful. That's just sort any of production as a the you bit great. talk of little be blockage, Colorada should with and passed Okay, I then throughput costs quickly well, La color would that's you. helpful. Can guess grades I

realized bit Yes. we failures the Sure, that background, last and infrastructure really heat we've couple of little Tyler. seen of that over years, issue. lot humidity a And a it's the a have of

what this increases, in heat from east that's with what deeper seeing extent. heat those ground seeing have, to really similar the the and particularly also acidic find to the raises. mine higher a And in We're and in we high-grade, we that greater we greater we're As failed And challenges increases. on starts this humidity. further deposit, developments that humidity degrade is

on developments have recover we shotcreting like we our do realize what to some these raises is catch-up shotcrete those. just have to do So we

forward our open as what ahead in we well, in it, each in now XX% development on that get we're were a right area. call from is, XX% So projecting and forecast, as XX% going and where the and QX each quarter throughput in grades out progressive maybe improvement into we increase move XX% grade to silver up higher to quarter

confident achieve So we baked can the we've into pretty that. that's and feel we forecast what

much. Thanks Perfect. RIght. so

next from The Please with question Cosmos CIBC. Chiu ahead. go comes

Michael, taking first Dolores. my questions Thanks, Thanks my today. team. for and Steve, on Maybe is question

in last we talked we leach the it kinetics. talked about quarter, As about

into that on at guess talked now oil rainy that? point we're in and had pad you season, maybe stockpiling in Could also rainy the Mexico. an for time, and think stabilizing of higher-grade X the I the update season us leach about pad the pad X. area give I between you

recovery? have impacted of how that and started higher-grade So you that material, stocking has some

question. Good morning, for Cosmos. Thanks the

Thank you.

dry the from that sidehill, trying in had design we season, or run that a Yeah. to the to steep leach in we buttressing build finders And of kinetics, the leaching have high-grade to area deep season so are pad wet that Indeed until plan. quite some fill Relative and way terrain the challenge, were are stockpiling well. some it's areas the agglomeration very original liners the a continuing previous the to those into now, high-grade a through We've assures of that in valley been is the that processing during some leach pad the try challenging X, we're addressing in successful plan in we leaching the to could we construction we're so we place area. mine geometry and with reconstructing build. stability because X some limit addressing

that ability the Currently, turn, That's area heap months And we seen we've or next really that so that to leach with grows inventories building expect move the into in to there. over advanced area that so. few the and what's inventories in So closely we're or to loading so. leaching reactivate heap away in that our heap those out. areas, designer X expect that, working those the start months restricted draw we've to non-affected inventory. last will our and it high happening And in back X from --

So it's handling and it's a that, that requires Minefinders the connection between and the valley of solutions side liner fill really that matter through hill a of preg old placements have unique and some buttressing built. geometry a of there that just of bit tricky and the kind coming heap

Dolores, I'm to already, going and going gave terms to getting of leach, and the Michael. on, more just the Yes, and Steve for and get Steve. longer obviously, us. impact X thing to it's detail on add But, take In stacking, we're the the great sorry, obviously silver thicker thicker, heap and many stack here. so gold And is years. longer to that out

Yeah.

material and Just more I'm it Steve forecast. of included -- takes, because that the sure Steve all thicker planning and there. in time the his But obviously that

silver, recovery that QX." about first XX.X%, XX% Silver Of the course, for well to that improve produced, work get " of it leads question gold half expect of actually in but a from into If stack the And here. ounces in fully versus the XX% my gold follow-up Should average understand. for second same. for we terms ounces out improved stayed half? I of I has

Yeah. time. And It's gold to quicker leach faster certainly, the be improve. will our

more because builds So gold leach of of the silver. the than long silver those affect kinetics inventory affect they

timing a definitely thing. it's yeah, So

and inventory than the So build the quicker it's quicker to the reduce inventory silver. to it's

So seeing what here. that's you're

numbers decreased level you tons. if Perfect. I that. like tonnage, X comment saw well, through If million your in And looks terms also reserves at resource correct, are it Dolores yesterday, year-over-year. then decreased reserve the can Dolores that Maybe update my of a of going as on

million enough -- of so more a kind might stacked ounces some the is is a Was just COVID-XX changes? due tons, period, impacts XX like any can on more function find missing. I And think not modeling seems you tonnage just of to in drilling be positive that and it here? end you this about X.X month there

Hi. It's Yeah. Chris here.

Hi, Chris.

absolutely at from at I some I yes the also increased And there. positioning reserve. but you've so and stockpiles, stockpiles had mean, had we they're the got reserves to we costs some the Yeah, we low-grade wet due actually look depletion, the lost flipped right. you're the know. When reserve paths production, costs underground of rehandling moment, across out depletion which some we

is And those that more a So just saying than your et slight to really question net-net, seeing that decrease production. cetera. cost, changes some there attributed we're there was

now, onto back stockpile low-grade north of add we was a could estimates, because pad again. tons leach the along, I There that a it costs part the that but this latest marginal sterilize those that, date goes the as up the -- of to of also leach said, handling pad was if Chris Yeah, that stockpile have all construction Cosmo, we costs, it sub-marginal our did but the was for absorb. to Minefinders property deemed in

north get got absorb. just it's come long back the stockpile got the the in then far a and it that pit on a So for to and around costs prices, it haul the constructing depending has pad in could and to

I Of to moving more Steve QX. in here. to to what thanks course, maybe of be on for to Colorada. terms terms guidance La But the bit specific of and want QX us in a look giving just And forward

XX, You in day the is day but of QX, the of even mill. rates remember, believe. like capacity tons And it could did I XX though about XXXX. myself Michael XXXX, mentioned, dating XXXX the sounds XXXX, in to per ventilation get tons at terms Kind levels nameplate as now back in your I flow per

that you're I what I almost over tonne you your for of math you were you're to get well? gram per XXX think as terms would the XXXX, do day behind I And in that grade XXXX QX get to it, guidance. tons where throughput? about you grade, per and to Is targeting grade need if per Is in to kind XXXX actually QX think tons Could back XXXX. in that did also of in targeting? day

I I for anticipate to over over will say, current any QX And XX% will throughput, to grades, the XXXX. incremental into XX% was then on development into catching of be towards a grade quarter-over-quarter, a going face. through at XX we day that that to into our up forward. Relative Like kind X,XXX Those averaging are that tons XX up that's forecast QX, XX over we Cosmo. and -- it's forecast. us increase factored another not does and mentioning, of the XX% that QX move QX. our Relative increases yes, Yeah, to going move just quarters great to XXXs reserve again.

great to at but half. at that I'm was QX, That's it you terms number of was think give there hear. La on actually And a higher here? that in you was when in I that? helping us a the cleared guidance, don't in in QX Colorada, detail significant -- And or Colorada. transport on then from come thought in Could And QX terms would've been case, of is of production, we delay concentrate then, that as QX. bit help to La it sale reading production, That case. in QX, in production that when the I out a would more that's talking by going out part included Are the or shipment of the getting happens. actually second or to the And concentrate about

Good been delayed morning we as firstly, Yeah. We take one. as it's Doyle that I report I'll mean, it's produce. Yeah. Rob Cosmo, revenue. production what's here.

in of as production. had challenges. So we pandemic-related some -- the that we've really around And commercialization elsewhere well at the logistical Colorada as delay is run La that had into

Colorada availability sheet year. shipments in half there. inventories the concentrate struggled the balance increased constrained of have million our and with is finished And the by from of been the that really first $XX out container factor ship about delays by we've key over that You've of production seen La

into pipeline are shipments very We a of and that QX and have normalization robust seeing in QX.

believe will delays normalize On levels of the year. (ph) top also those balance over we So inventory had the that in of day shipments. do we've that, some

shipments the of that there large in in elections of because around some withheld June. were out Shahuindo in Peru Peru complications were Specifically, particularly

So and in will into come that was QX. revenue delayed

the through course issues And, cash time. simply revenue out course, will come of are too. these of So in all and flow timing

you since Great. then, Rob. on Thanks, one we here last brought question up. And maybe -- just this Shahuindo

the of guess first half. worked the I the the about or recovery, ounces QX in XX% actually I here. in of that in ratio produced context, the it with of XX% on stacking talked leach versus end like improve mentioned recovery even or the in into guess kinetics, it of it that XX%? the some the of XX%, leach month mid-XX we the of of quarter. see back to or You in kinetics coarser to and about was terms stacked to Michael to about technical the was of get level you agglomeration Part do you're sounds seeing of towards with grades fines, QX to, need part now. I numbers the It stockpiling here versus on. ore out due blending what report was a later of of some we to that Could also higher happy terms Are We're the question

This hard what Great right now. question, quite Cosmos. is we're studying

the which can right application hard blends mining of that as now, for and are net we sections to and hesitant that's rates we out not And confidently off, kind will say We're of have totally understand right offsetting the important able rate. to bit to And get still see and you clay rates. these heap. possibility. problems. clay through activate distribution lithologic challenging won't heat, It's build do numbers fine is by we're we're grain of that of all much this result are we looking kind we're we're fine us -- our right trying the push when why as drilling. throughout won't to to the slow we plant to do to can those coarse as solve kind ore the First just as at of so at trying with do up process all our the rates down application is that in that's to because ore as the a ore. answer that. yet, the reduced rate in And year. with a to high high we this rest with We're we're about. We meantime, model reduce that are talking not slower ore. exploration now. kinetics back of it convinced models the come blending information ready probably the to the -- It's We're the kinetics fine are some But of agglomeration We we try of have that you this RC that not and that normal

that's not need had with model. not, even course feel than believe doing what that there. we seen or that's It's agglomeration, at in understand, great rates excess We've the what timing kinetic leach recoveries point have will and kinetics to this what ore really evaluate, has much and So the we're XX% ore or years. do forward. the And and whether have extraction of what we've an we're we expect get have in trying in we're lower that to forecasting ultimately slower high to before. We higher we a agglomerate. seen whether still we we and to that's studies with and application very And going previous rates and

for Great. That's Thanks answering have. Thanks, questions. my Chris. I Michael, all and Steve, Rob,

National The Bank question with ahead. go DeMarco Don comes please next from Financial,

Good of ventilation Thank surface XXX. Operator. to you rates morning, number Colorada from a There's at for La taking call my gentlemen.

course. Of

a to to east. - planned I over you ventilation fully line concrete at just have rates think are mine list Candelaria, shaft medium-term? the the potentially ventilation maybe raises that Could other the there further you provide

Sure. done. was from here. Its It's margin

X the terms of raise. surface that the in call We the the Hemilo's at XXX. bottom. plugged that to So That's was

just one raise. cleared the was one That's that's that recently. So

have completely rehabilitated had a then. doing level We're now below bypass to then of in We portion getting that actually in surface Batad, called we meters just deeper. XXX one August, shotcreting surface And that down in goes which QX. the to the we're X fully raises That to another from that Lale one other just raise. we're close XXX failure -- to

the Colorada mine. called is Another One's principal the two raise which called called Estrella, in so the other is of of Estrella. and us Candeleria Estrella for key the remember, ventilation La La mine parts La has portion is

towards again, actually, early were the of service and in we out towards I were deep. down, early just that to over the a bit So of XXX the it that end meters from able sorry little surface way take there. QX, sorry, do one QX, We part and if La of QX of shotcrete the end June all QX fully of misspoke in I'm Estrella part to it's able

ones. July, So are three the those principal

of intake coming and Aguila have in intakes that shaft, an We have XXX,XXX the El ramps also shaft. intake which air CFM are intake one. we about The

while the have the we reverting an we airway. mine, We being an it's ramp, to the used as route had now which intake in Campania exhaust failures and

a of air cool to of also end refrigeration on And going providing there's be the Fermin by plant top the the be year. That's So that. to ramp. going we have then San

And it big all mentioned, as a spread humidity that's those This and -- the is for very long ventilation mine heat we have flows areas. when deal we and circuit. Michael designing with that's distance. is over both a and out very laterally we're complicated that to have the So Steve a large

method to zone to And so Michael cherish in we deposit right Don, mentioned that deep-seated high-grade mining if an much. have Clearly, access and I'll into I policy, any to ultimately going infrastructure going shaft ventilation just the regardless against that -- the we're it see provides I access advance the us, failures we the out skarn the as shaft deposit, of east, to that new call conference, that we're meantime, provide deposit. mean, this had heart skarn in shafts to insurance the that Geronimo further shaft. into San to two saw opportunity a the We the we seen and Further deposit. ventilation And in approved But several this opportunity. years. need. start we've but call could last going the have his of over we

that forward set quickly going completed it was and end So be the that. to XXXX, who up end project pleased well contractor was should of towards XXXX, we're great of really we is have able on mobilize a that that very

will diameter. this with meters moist need system So policy opportunity. that's we're that shaft exhaust an lined hot X.X we a another that about And of should excited insurance fully air be concrete pretty

that It's of Do Okay, it's future? we've trying that what understand this I'm very hear But so risk. to policy with what on. encouraging and grade unlikely Yeah, understand that that's you am (ph) in reduced of San the trying I repeat and insurance couple an to to would happen you Can Steve. I you seen potential think just see guess that? throughput over the the on getting sorts. will Geran again at. the years last comment be a of risks of

-- that key ground raises. pleased with time raises into from sealing these -- now. how to going shotcreting with risks on period the this very thing robotically yet be that advances to the long We're shotcrete done and the this to we the off is raises away degrade. We're There Shotcrete where get heat starts in and shotcrete it humidity (ph) in that. is for of We're developments, described perform. haven'treally see are Martin not a able to seems acidic these to

really insurance fully have date. in any we're that too. that going pushing an policy. but the policy today, an we're seen shaft now it's I do So wall policy. X think insurance haven't shotcrete about good to to to reason of we inches we is pretty that think But really We got right forward Hemelio insurance of feel good the on as the degradation shaft, feeling up it, important and We an

Thanks that. Okay. for

had up tons you caller what And so again, think? on X,XXX to can't Just per with X,XXX, day, back get the is a restored, ventilation I to reason asked. previous expand say the that what

and with to the production Because development been Yeah, of restricted not east. the we've some the ventilation in restrictions, no, saw the it ground deals developments, raises, we but seeing also particularly the of development. we the degradation up in mining only support. same And

of X over next up going the So it's to and ramp there we XXXX. back that's to do a why on catch-up have bit months or Up so.

Backups XXXX. Okay. to

resource question. skarn is on mean, deferred I a year to great year-end. include That's a just than update resource a Was curious last then see final there it's Colorada time. not advancing. a the night? has We're more reason The been in old, current the target. drilling in to resource Okay. how this there it lot to And of La

the we good wait so just reason it's Yeah, also for full there in we're a are infill PEA understanding some thought feeling skarn But and coming drilling didn't with so about only the it's include that it, been year, have towards new there PEA end has that we we best of we out that deposit. the really before to this resource of released. great

of there on imagine As mining access technical on you going of is lot right on ventilation, cetera cetera, area, et methods, et processing, on work can the now on a for the obviously the at the and will not PEA. All that developed. will well, -- but stage reserve we're it our ultimately that being impact see resource how we still yet, skarn impact,

it's PEA. in a a resource for way right update that few that that, for the And prudent so include months to more wait and

enough. Fair

half. Steve. you That's And thank good the and Okay. for all Micheal in Well, that, me. luck for second

Thank you. Thanks.

with from comes ahead. next The Very Independent Research. Please John question Tumazos go

the significant? was resource for as -- a that and just you in produced. Is a Thank big produce earlier did. effort reads with in you drill reserve of last summarize America But fair Latin the COVID which much repeat. the challenges know to it just to questions. it you producing the year, you as the And hole epidemic didn't were like report want to don't I I

the secondly, And which things like updates less get than years looks X better the impossible processes several are how it's least than years. take, pressing which is at and a last little Maybe better more. reserve there's the it then nothing. And moving more than Guatemala in But predict the to for and long next calculations production. were more, X year of communications year some we'll it's data. will were processes And is I and whether guess, engagement,

if Michael? many your where I'm trying Just if mouth. -- you to not fair put words that's -- in a too of summary go are we

to report like saw little and what you Doesn't get if make a fewer we on on-site happened replacements. for bit increases the have big course, intercepts products The impact impact priority have governments on when of we the think our the the past. been COVID got course, the step world. interruptions you why of Probably you reserve so down data, shut an priority Yeah. is that and logical one on started. That's COVID Good people to down this, said, I not that production. reserve -- morning. you to from difference the and year as mean, fewer like bases because when exploration but a was with reserves efforts. exploration. to than the last we step deplete we really give And largest a is Latin give our that's fewer our of Company by logical the know probably a from America. have production you operations a are in XX% also all mentioned that more the were the or give We and we to when year in across with our in less big drilling in I continent there off had And epidemic

we replaced and Timmins saw You very where production at both that put full up Arena more at a well drill La and still we than sites. sure to was I'm -- it year easier in do programs you the to have

and our good last you but news shows year very felt our you take our we can, slight reduction drilling, and us, the a very spanning we we prioritize very, really assets when in So where obviously as reserves of that out efforts and of of on production. start the we got that reserves the results that long-life there, have ahead many I can said, many,

reserves. that's So for probably enough the

release Chris this detail. right. give that much more I On I Chovota more put in Guatemala morning. your we'll analysis think open and There's out fair much be to press is (ph) think obviously the detail and

other is The meetings. with Guatemala process pre-consultation moving in

are reported and held Guatemala. to meetings the ahead. happen But make to has safe will due meeting in to that a think and supposed manner. in have very, July environment moved restrictions as these still sure progress that in are I COVID moving [indiscernible] and was safe Obviously, all be we move August very to ahead they're which they been strong

that the up all underground with from quarters up I keeping first waste Michael, mining current We and tunnel most crisis. point the from could if stripping had just follow of from companies to on understand the workers exploration, CapEx, produce of divert development, the production. to during

alone -- XXXX, in they've on think let many and you behind years as know back haven't output, we or introduced factors, get waste plethora XXXX that of Even [Indiscernable] production mishaps lower XXXX guidance If because tons a XXXX yet were to things guidance XXXX, and X trend stripping. there so or XXX that forecasts to be and a for couple understand do XXXX. can their can XXXX they I XXXX to cut thousand it ago? you get output back to was where we are XXXX? onetime Or the original right, of get won't until you

evolves. at we outlook, XXXX. tell COVID will this how there gave was no our first change that time quarter, we that we guidance but for when the impact Remember, assume didn't XXXX, mentioned of We first quarter pandemic the

on. yet and But in on to and are it's we far, we going conference reality we now. have the good. with now crystal There variants. have don't we and have I that I say, rates we'll see so a information don't that calls, ball the behavior here. the right to and we evolves But react would so know said prior But how of virus there that see. new how But don't is right understand vaccination see As

et year. away, on of good the really COVID, this pandemic. still to that's fewer very and normal due controls than we rates But had a is we statements and fewer think more can to I [indiscernible] cetera, bit year's back a that and behavior go further next there now far protocols, to restrictions, it's make chance

is stripping, gold of million, development, XXX,XXX X evolution per And quarter your little million more waste again? CapEx silver underground the year than So the as quarter next a ounces that of such, the and per X.X it possible ounces

pandemic All the everything yet. as as seen make that very the now to look, back and we numbers, didn't list said, obviously I high I'm to at numbers haven't right there continues back the saying the be our to early on We see grades throughput should go normal get to side, that well. I I we on very and as go to we when these it's budgeting normal and Well, obviously is Steve calls. numbers if throughputs La the have for able Colorada normal forecast. the mentioned don't normal

Michael, good. that's very

of companies than other are you. that Now, That's behind lowered multi-year already there a they're people can fight they say so lot actually better the forecast. far that battle. Thank

America Bank comes question Winder next from Securities. with Lawson go of Please The ahead.

the guys. ask Can about cash I Good but the X%. flat, quarter-over-quarter per-unit rather, What slight Timmins? Hi, up throughput, the that? was costs, morning. picked grades, cost increase in costs cash driving relatively ounce per at about A

here. Steve Lawson. Yeah,

was strength have exchange moving quarter. down backed has seen rate. that just dealing lot support we've in moved since -- we're during in that stabilities drivers been of geotechnical a and Bell But there. also, into elaborate It redrilling Dollar off increase holes they drill the feeling of QX. better then, so Canadian of We some the mean, required lot of these after more the One more I going with the had addressing it's Creek. in support a an

the levels going as as too relax stopes, we there half. well and second it's So transverse the to get there going additional into into these costs that are move down

any just going don't at any And Bell mean Creek. I you I Do impact what's because for year, input on of forward. mean, at going on this Timmins on see -- grade

clearly we Yes. where our Bell -- get is best is Creek the grades.

are rates as throughput well. produce to up anxious Creek, which get we to help Bell at So higher will grades

Okay. Got you.

and gold up. silver Argentina, ticked surprised that turning see was gold to Now, to Joaquin I reserves, well actually at reserves

then And at driving with were pretty -- decline in the COSE, substantial So was XX% driven or declines factors that? those XX% flourish completion, was [indiscernible] COSE? there all that respectively. other and What by driving similarly

information X areas the we've we're Joaquin X areas. and able in and see Lawson. I Joaquin et or lot the to thicker Yes. don't get geologically actually upgrade and able we cetera, got actually deposit were development, more Hi. a drill holes some into to from

from actually assess from production. based that we review we got in obviously very slight to the [indiscernible] and geological as being on deplete development. change information from, so was there limited a we was at development, And able through we're again, lot So keen Also, Joaquin. back more as information to geological while gain we win [indiscernible] model net-net geological and get some a well. that from a exploration to that do more did were

Okay.

you Joaquin, deposit. -- great. thinking the mean. mine The that's and Manantial of do I? -- COSE, that guys And point, Manantial how now life operation, about entire are Argentina? on Now including how the original in left what's at

Let numbers. me could it's than like my in of be -- X it end-of-life. less I -- is it? it still looking on mean, pretty less? it it's years. thinking could expanded, or frame terms, still it Are much you be and or those thinking in

Yeah, Lawson.

but up reserves would I information difference been we and a and As to bit the little our on to in as you very I with a very more Steve have nothing mentioned, size. not the a that of going obviously Chris there move constantly deposits, kind here expect think really, changed, know, and development there forward. production gained bit from down. Cosmo of have we'll both And major see to so reserves high-grade beginning -- small as limited has and Joaquin satellite But

I but discovery, probably alone that right estimate make now. you're our like would we on that's looks with big timing right how So your in think about battle it

just thinking you about asset reserves bit. asset decline life extend then Dolores, mine that three-year to or course, that quite guys a there do just And potential the of on But in the mine Is a well. Great. life already as that longer-term? see discussed we've there

anymore. that Steve least it's the can't strip afford terrain mining open here. XXXX There's driven there pit the steep But to on just XXXX we pretty and open into pit. no, perhaps. at constrained through economically be to some We'll Lawson, pit's the west there rugged an

lot is not to on underground, pit. but relative undergrounds the small are exploration a pretty a upside So of that we're there. seeing really bit open There

on the I silver kinetics mine-wise, given will the keep continue slow moving XXXX, -- go little the processing on a leach So while think trickle-down into a on quite But maybe thing. will leaching then the more. on that on

Steve. final production in great you And going maybe how Okay, strategically think question gold one just then the about of forward. terms

gold a to been to sort more the or Company it And longer-term. you kind will huge continues since acquisition. whole seeing view? but are it toXX-year silver production of Is production looking the sort of it's sort these the imperative be obviously contributor be it to like strategic of So replace out for production a couple a comfortable the years, that gold of for to guys X a on levels more keep or at

a with to But good deposit for deposit And Well, gold moved and that's the at in think the time a a silver look with gold end dictated I by obviously geology deposit it's Dolores is there comment. gold it accounting silver. very obviously example. over from sense, And the sector. reflected at much beginning silver it. the for the more away likes into over rest our gold the just year we moved the of remember that much there's of In from because the

they well year, [indiscernible] so difficult mean replace and in And flow very been Timmins asset I'm did looking and purchase that They're important did a And able us for I that done cash even will another sure. believe. developed of And at dictated have a really La profitability now we assets. reserves had Arena be fact even it's and we replace, actually XXXX, we added by assets I Arena. When very nice. free year. than we by very La at by the at more geology. assumed This year model the to for to the us fiscal a very

production very So happy and that. gold with continue I'm will

La has asset you an guys. been Yes. Arena amazing for

best of Look, much. and Thanks for rest enjoy answers. the at good almost are the hour. summer. Those Okay. your the time the all Thanks so your we're and of top

Lawson. Thanks,

a next Please question Kozma please Once [Operator again question if comes from have The (ph). Instructions]. you go ahead. Ryan

Hey guys.

of each to are confident of on a guess quick good than most San ask one. of up you production guess get asked, just in be I specifically year. we guess detail have Or reaffirming my attracting It's those Manantial, you basis? the significantly would or Timmins? mines questions the we you that you I'm say La you was so and It for and think that reaffirmed. thinking pretty more the my to getting of that mines I can sort the are in some should the like Vicente, assets referring mine Colorada guidance pretty is, half, I looks that X obviously, see others, about been sort I second some talked Are reaffirmation the to should I'll weights second higher of question and be good other to about consolidated for the guidance? consolidated pulling in thinking guidance, about half of guidance

-- half. little for Manantial pluses I will anticipate a Ryan, I and think will Steve Absolutely about said, we gives consolidated that. in bit would say Timmins, second no we we there today do San it's see little room. doubt the have us sure Vicente, breathing here. We Good With a do see that. question. minuses. anticipate will Generally, more and that I be move yes up

have to do out we're guidance, one's but we meet trouble, We generally, there But expect mine. they'll just what advantages many each that basis having generally think it's when one set doing one of are individual -- we another is targeting really certainly, the reasonable. having the different mines we us -- well. consolidated give So of for the

Got it.

clarifying for Thanks all Steve. I That's that, have. Okay.

for the closing question session. the back presenters remarks. concludes over I the This like any and to would to turn conference answers

Eastern Thank our to on second for hosting just annual be Xth approach. social, environmental, that will you, Time, everyone in on governance XX today. would discuss everyone and call September we American's to the remind I call and thanks at now like Operator, calling Pan AM

the time, will have able And to and out date. We'll also cetera, if further save please, on website. you with the for So find press it watch our put be call-in details, information. you a et call in, release

it to And at that and So it if very talking end everyone. QX. our looking make everyone, Enjoy talk call later rest to sure, prerecorded of I'm be at hopefully you and obviously safe. available forward Stay can't much. Thank ESG will we'll of the you that the on. summer, the

call. This concludes today's conference

a day. you and Thank have participating pleasant disconnect may your lines. for You