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spk01: Good morning, ladies and gentlemen, and welcome to the IA Gold and Silver's first quarter 2023 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, May 12, 2023. I would now like to turn the conference over to Ruth Hanna. Ms. Hanna, you may begin your conference.
spk04: Thank you, operator. Good morning, everyone, and welcome to AYA's first quarter 2023 results conference call. My name is Ruth Hanna, and I'm the Investor Relations and Communications Manager, dialing in with some of the AYA team from sunny Montreal and Morocco this morning. On the call today, we have Benoit Lassalle, President and Chief Executive Officer, Hugo Landry-Tolchuk, Chief Financial Officer, Raphael Boudoin, Vice President Operations, and David Lalande, Head of Exploration. We will finish today's event with a Q&A session with the team. Please contact our investor relations team directly with any follow-up questions that are not addressed during the call. Before we begin, I'd like to remind listeners that today's event will contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ material from those in the forward-looking statements. Details of the forward-looking statements are contained in our May 12th news release, as well as on CDAR and at www.ayagoldsilver.com. With that, I would like to turn the conference over to AYA's President and CEO, Benoit Lassalle. Benoit, please go ahead.
spk07: Thank you, Ruth. Good morning, everyone. Thank you for being there today for the first conference call. I would ask you to go to page three of the PowerPoint, which is on our site. on the site for the conference call. If you go to page three, we have the key highlights of our first quarter. The first highlight is our production at 474,813 ounces of silver, second highest quarterly production. You recall that our highest quarterly production was in Q4 of 2022, which was an exceptional quarter due to a very high grade zone. The total cash cost for Q1 is $14.56 per ounce sold, which is aligned as well with our guidance. And as you know, Q1 is always for AYA the more difficult quarter due to the weather and hence at $4.56 per ounce in Q1 of 2023. We're completely aligned with our guidance. Another highlight is we generated $10.4 million of revenue and $4.1 million in operating cash flow for the quarter. Also in the quarter, we closed an oversubscribed equity bond deal for $92 million, and we exited the quarter with $91 million in cash and cash equivalent. We are fully funded for the task ahead, for the plant expansion, for the exploration program and hence this is why in Q1 of 2023 we did this financing to have a fully funded company for the years to come. The overall construction progress is assessed at 32% and we'll come back to that later on in some of the slides. One of the highlights was in exploration, the extension of the Boumadine open-ended strike to 3.4 kilometers. You recall, originally, we were at around below one kilometer. And now, with the last result that we presented, the strike is at 3.4 kilometers. And also, it was the discovery of the new stockwork mineralization. David Lalonde is on the call, and he will be there to answer some of your questions. Going to slide number four, a very interesting slide because we have the guidance for all of the KPIs, and we have the Q1 results. So the guidance on silver production, our guidance was 1.7 to 1.9 million ounces per year, and we are at 474,000 ounces for Q1. So you see that we are, you know, on guidance. and especially that Q1 is always a more difficult quarter. The cash cost at 1456 is aligned with that guidance at 1440. I'll come back to the cash cost for a minute. Let's not forget that we're running the company today, not on minimizing cash costs and maximizing profits, but in being ready for the plan expansion of next year. So if we ran the company today knowing that there's no plan expansion, Of course, we would have probably less people and we'd be not managing it the same way. But our goal is for next year to grow our production with the new plant starting. And hence, we're building the team and organizing the site so that we have a very smooth commissioning next year. The average grade is for the quarter, 235 gram per ton. The guidance is at 264. And I'll come back to that in the next slide. But due to the nature of this deposit, you know, we do have a small and sometimes large fluctuation in the grade. The meal recovery was very good at 87.1%. Our guidance was at 86%. And the ton process, very strong quarter at 72,737. The guidance for the year was 245, so we're way here ahead of guidance. So going to slide five, you have some charts that are quite interesting. The first one on the left-hand side is showing the production, and you see that at 474, 474,000 for Q1, it compares extremely well to Q1 of last year. Of course, besides Q4, it's a little bit lower, but you recall that you see it on the chart below on the grade. The grade at 235 is aligned with what we saw in Q3 of last year. Q4 was an exceptional year. But this is the nature of this deposit, is at times we're going to be in 235, 240, and at times we're going to be at 300 and more mining, you know, higher grade parts of the deposit. What's important for us is to mine this deposit in its logical sequence and really to maximize the number of ounces that we will take over the mine life. So for the quarter, we were at 235, which is a bit lower than the guidance for the year. On the right-hand side, the average recovery at 87.1% is totally aligned with where we want this company to be. We had almost 90% in Q4, but it was an exceptional quarter. And on the ore process at 72,737 ton, well, that's a record. So this is very, very strong quarter for ton process. And that's what you see on the right-hand side, the bottom chart. Moving to the next one, what's interesting, again, on the left-hand side is the cash flow. And if you look at Q3 2022, Q4, and Q1, we generated like $13 million of operating cash flow in the last three quarters. So the KPIs are all good. We're operating well. It's generating cash. And obviously, we all know that this is coming from the two smaller plants, the leaching plant and the concentration plant. And once the third plant is up and running, all these numbers are going to change in a dramatic way. The gross margin at $2.1 million for the first quarter That's aligned with, it's also a function of our selling price, which was around $22 an ounce. Obviously, historically, we had a better selling price than that, but that's the reality of our industry. The cash cost, the cost of sales at 8.4 is also aligned with our production numbers. And you saw that our cash cost is at 14.5 and our ASIC is 14.9. So we have a very, very good quarter. So the cash costs, as I said, on the right-hand side of 14.56, well, it's aligned with guidance, very similar to what we've had in the previous quarters, obviously, except for Q4, where the grade was 350 gram per ton. So financially, we had a very strong quarter. We have a very strong cash position, and which, as I mentioned, and I'm saying it again, we're fully, fully funded for the years to come. And before we go into geology and operation, I'll just cover sustainability. It's a very, very important part of our values. And we do have, as you know, a $100 million loan with EBRD, which is really an ESG loan, which has all kinds of KPIs. So we have rolled out in Q1 our programs in health and safety. Now, health and safety is an area that did not exist when, you know, or a concept that did not exist when we arrived three years ago. We're pleased to say that in Q1 of this year, it was our best quarter ever, is no accident, no fatalities, no LTI, so no, you know, long-term disability were recorded. We also gave over 1,000 hours of training. So this is a momentum situation where you really have to bring health and safety as part of the values, and it's coming, and we're doing very much better, should I say, than when we arrived, and we're pleased with the results of the first quarter. also on ESG we're advancing the construction of the power line at the 90 kilometer power line and that's important because we are we will be receiving renewable grid power green energy and you know this Gounder mine will once up and running on that power line will be you know one of very few mines in the world running off green power The ongoing water testing and the launch of the air and noise monitoring system, that's also an important element of mining and we're doing this. We're implementing the task force on climate related financial disclosure. We're about 60% completed and we're 31% completed on EBRD's environmental and social action plan. These are very strict KPIs that we have. It's part of our goals. It's part of our values. It's part of our strategies. And it's also all of that is part of our remuneration package. It's part of our KPIs. So the ESG aspect of our business is seriously embedded in everything that we do. And we have the rollout of the community programs. And, you know, we always talk about that. And that's something that we communicate with you on a regular basis. It's something that is extremely, extremely important. And we have it for our medical program that exists there. We support education. We also have implemented a stakeholder engagement plan. So this, again, a very strong Q1 on the ESG front. Now, talking about the construction, and that's taking you to the next slide, very interesting. You saw the video that we put out at the beginning of the week. As of today, the video has been seen 36,500 times. So it's a YouTube success. So the video is showing great progress. You have a picture here that shows the site. It's very interesting. And the construction, as we indicated, is 30% completed. You have that on the next slide, on slide number nine. We have a bit of a detail on the process plant. It's completed at 26%, of course, because the erection of the steel has not yet started. to build the plant, but the underground and the open pit is done at 29%. Tailings and water management is at 41%. Electrical infrastructure is at 18, which is normal because it lags behind other infrastructure. And onsite infrastructure is at 53%. Raphael is on the call. He just came back last night from site. He's in Montreal, and he came back one day ahead of his schedule to participate on this call. So if you have questions on construction, completion, and all of that, Raphael is with us. What's important is the laterite development is we have 5,000 meters done on an 11,000-meter program. Cement is being poured. Engineering is about 80% completed. Earthwork is near completion. The advancement of the new tailings and water facility, you saw that on the video. That's going very, very well. The EPC is progressing with the critical items. That's going well. So today, out of our budget, we're about $119 million contracted across all the capital cost categories. At quarter end, we had incurred about $26 million. Obviously, now it's a bit more. So we say that we are on budget, and we are on budget, and Raphael will be able to comment on this. Going to page 10 of the small PowerPoint, you have a few pictures showing you the earthwork, how we're advancing. and the installation of the ore silos has already started, so you see a couple of pictures, but the best of course is from the video that is available on our website. Now, going to exploration, which is a central part of what we do, the exploration programs are going extremely well in Morocco. As you know, we have three large programs. We have Zgounder on the main zone, where our budget is 26,000 meters. We have Zgounder regional, where our budget is 6,700 meters for the year. Then we have Boumadine. where our budget is 36,000 meters. So that's on page 11 of the PowerPoint that you have. So coming to the, going to page 12, that is Goudère, the main zone. So we are at 3,200 meters drilled so far. It is aligned with our expectation. It's because the budget... the 26,000 was not divided 25% per quarter because we needed to complete a lateral development at the bottom of the current mine so that we could start the underground drilling from this new gallery, bring in water, bring in electricity, and start drilling. So you see on that slide, Page 12, all the blue lines, are drilled or potential or expected proposed drill targets and because our intention is to have drilled the full structure for year-end in order to include all of the results into our resource calculation for Zgounder main zone. So that's extremely, extremely important. We are also focusing on their regional where we, you know, we have a budget of 6700 meters. That is, of course, is a little bit different because that's not systematic drilling. It's, it's more exploration drilling. So, David. with the team are looking at targets. We have many, many targets. And there they are doing more exploration drilling to the north on the two permits that we have there. And there's also a permit southeast that has some very, very good targets. The next project, which is of great interest, is Boumadine. Boumadine, in the quarter, we've announced some very good results. The most important one was 192 grams per tonne of silver equivalent over 129 metres. But that was also extending the strike length of the structure to 3.4 km. It was also showing that it was opening up to the south. As you all know now, we're drilling 400 m south again. to go even further 600 meters south or it's called section 5600 and we're looking at this being drilled as we speak obviously to understand at the opening of the stock work that we saw in the in section 6000 So it's a very, very interesting program. We are not all done, but we're more than 20,000 meters done. We will have a complete review of the results over the coming few months, and then we're going to be making some decisions during the summer on what's next. But Boumadine is really looking very, very good. There's some infill drilling as well going on in the central zone and in the north, and that's very important. On slide 14, you have a section which shows the mineralization, which is clearly open at depth. It's open to the north, it's open to the south, but it's also clearly, clearly open at depth. So it shows you the strength of the mineralization. You recall the central zone was well mineralized, giving us silver equivalent grade that were very, very good. And now we have to understand what we have, and that's why we intend to put in many thousands of meters of drilling. The slide on page 15 is showing this last drill hole where you see the five veins, if I can call them like that, that were mineralized historically and to the north. When you had veins in between, there was no mineralization. The stock work was not mineralized. But in this case, at that level, when we've hit these five veins that you see on slide on page 15, is the stock work is also mineralized. Hence, showing the potential to be much closer to the heat source or the beginning of this mineralization. So a very strong quarter. Q1 was great. At the mine, the operation went very well. The financing was very well done. The expiration is going on and it's been very successful. And on the ESG front, it's going very well. So you have it on page 16. You have the takeaways of the first quarter. very good production, good cash cost, aligned with our guidance. We're delivering the key milestones for the 2,700 tons per day Gounder plant expansion, the start of construction of the tailings dam, the water reservoir, it's done. In Q2, complete the detail engineering and the beginning of the open pit operation. Raphael can comment on that. On Q3, delivery of the ball mill, that's today is aligned and it's not confirmed because we can't say confirmed, but, you know, we see that that will happen in Q3, completion of all the water storage basins, and for Q3, all of that will be done. The drilling at Secondaire is going well and will be completed for year end. The drilling at Boumadine will be completed by mid-year, and we'll review then what we will do. And the same for Tijerit. We don't talk about Tijerit a lot, but the drill program is complete. The feasibility will be completed in a couple of months, so it's following its critical path. The ESG milestones for 2023 are extremely important. because they are aligned with the EBRD loan agreement. We're following this closely, and there, as we mentioned, we are again there on the ESG implementation. We are on time, and there's no budget, but we are on time as per our agreement. And we will continue the year focusing on health and safety. It's part of our values, and it is extremely important. So operator, that completes the formal presentation for Q1. I will turn it back to you for question and answers.
spk01: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pulled in the order they are received. Should you wish to decline from the pulling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Praneet Singh with 8 Capital. Please go ahead.
spk03: Hi, good morning, Benoit. I just had a couple of questions on exploration related to Boumediene. It's been nice to see you guys continually grow the strike length there. I thought the last batch of drilling was a very interesting development. Maybe just run through what's guiding the deep drilling there and how you think the new mineralization style could grow the project even further.
spk07: Yes, thank you for that question, Pony. David, are you online? Because David is calling from Marrakech, and sometimes the line is not perfect. But David, are you online, and can you answer this?
spk11: Yes, I'm online. Can you hear me well? Yes. Yes. So what's guiding the exploration at depth? Well, geophysics is one of the best tools to help us. The airborne survey we've done last year with the electromagnetic allows us to follow the footprint of the mineralization depth. So that's one of the greatest tools. Otherwise, we just keep on step drilling outside of the known area. And slowly, with all the indicators, it can be molybdenum, the temperature in salarite, we start seeing an increase in temperature that kind of tells us we're getting closer to a source towards the south, and that's how we discovered this new stockwork zone towards the south. What we had in the north, we had the stockworks, but there was basically just very, very small anomalies in there, no economical grades or whatsoever. And more we move to the south, more we start to see significant use in gold and other metals associated with the stock world. So yes, we hope that the grade will still increase in the stock world, but it just brings increasing volumes to the system. And as I said, it brings us closer to the source. So the south is a big key to the future success of Goumadine. And in parallel, we keep on infiltrating in the south area and the central area in order to deliver a resource in the coming 12 months.
spk07: Okay, go ahead. No, no, go ahead, Noah. No, I was just saying to David, because your question said, how do you see this changing the size of the project? And I know that was part of your question, so I just was going to ask David maybe to comment, if he has a comment.
spk11: Well, change the size. I mean, switching from 4 meters, 10 meters white mineralization to 100 meter white mineralization, it simply increased the volume by tenfold. And it encourages us that we will keep on finding results and making them larger and larger. So it has a huge impact on the future size of the system. It's very early to see what's the full implication of it. We're still in the exploration process. But it excites us a lot. And it's a unique opportunity.
spk03: Okay, got it. And then just my second question was on, I know you guys are conducting the surface mapping right now. Maybe just run us through your efforts there. What do you think the data will help you do once you get that back? Thanks.
spk11: The surface mapping will help us understand the structure because we start to understand the model. We have a main structure that is north-south. This is caused by some other late-stage faults. Some of them seem to be bringing an input of salerite and galena and silver in the system. So that will help us tracking those areas, so the richer polymetallic stage of our main trend. It will also help us discovering new parallel zones and other systems. So it's all part of the global understanding of the topic. It's a major help. And we will also be able to use this data to refine the geophysics and the spectral surveys we've done over the last year. So it's not over yet. He did the detailed mapping of the old imagine area, and it's a very quality work.
spk03: Okay. Thanks, David. Thanks, Benoit. Those are all my questions. Thank you.
spk01: The next question comes from Justin Chan with SEP Resource Finance. Please go ahead.
spk02: Benoit, David, Raf, and team, Alex, thanks so much for hosting us. I just have one on the development rate. I'm just curious, is the 1,500 meters or 5,100, sorry, meters that you quoted, is that a number for today or was that the number at the end of March, just for our calculations on your daily advance rate?
spk07: The 5,100 meter of development on the 11th, is that at the end of March or is that as of today?
spk05: That would be at the end of first quarter. That's at the end of Q1, so as per March 31st. And our development rate is relatively steady at 500 meter per month.
spk02: Okay, excellent. Yeah, because when we did the calculations this morning, that put us pretty much exactly for the end of Q1 next year, which ties very well for your production ramp-up. So it sounds like the math checks out with what you think as well. Correct. Okay, perfect. And thanks for that one. And just on the budget, similar question. So we calculated roughly there's about $90 million or so left to spend just if you take your 32% completion and your $139 million initial budget. And that sort of ties to your numbers today, which I think don't include contingency. I just want to check that those numbers are also correct.
spk08: Yeah, so at the end of Q1, we were at $26.5 million spent. We have to be a bit careful that, you know, we don't just divide the dollar spent divided by the total amount to spend, and that gives the, if you will, the percent complete. Our percent complete, we calculate based on a large WBS or a large worksheet that's based on effective work and not so much on dollar spent. Uh, and so those won't track exactly. So today at March 31st, we were at, we were at 26 and a half million spent, uh, about 119 million committed. Uh, and so far that's tracking with what we're expecting.
spk02: Gotcha. Perfect. Thanks. Well, it sounds like the bill's tracking well. I mean, this quarter was, I think, bang, bang online as well. So, um, that's, that's all very good. Maybe if I could do one last one, I'll free up the line, just pivoting to, um, Um, could you talk us through the mythology of the stock work zone and how that might influence how you plan the circuit versus, versus the high grade zone?
spk05: Sure. So, Bumadin's metallurgy is something that we've been working on for quite a while. Bumadin is a polymetallic metal for which we understand relatively well at this point. It's refractory. This is no news to anyone. And then my answer to this is going to be the same. We can unlock the value of every metal on Goumadine and then depends on the grade and depends on the tonnage that we will find. We have evaluated several processing options that technically work all rather well whether it's Albion from Glencore, whether it's a pressure oxidation, whether it's even roasting, all known method to process refractory gold ore have worked rather well, meaning over, say, 85% gold recovery. Now the question becomes, which method should we favor moving forward? And at this point in time, we need to continue our exploration campaign to answer this important question. So what we can expect from Boumadin on the long run is a conventional flotation for lead, zinc, and a portion of the gold and silver, and then to extract the rest of the value of the ore would have to be some sort of oxidation method to oxidize the reminder of the pyrite to unlock the gold and the silver. So on a purely technical basis, boom added metallurgy is relatively well understood and there's obviously room for improvement. Now, which method will be used, which tonnage the project will be, what mining method, what processing method. We keep our options open until we have a much broader understanding of what the potential of the deposit is.
spk08: Yes, I think it's important. Just on that, right, I think, look, we're about 50,000 meters in Tabumazin exploration, and every drill hole that it does, something new comes out. So we need some time here to discover this, to find out exactly what we have. And based on that, we continue to follow it. But we're a little bit early in the game here, I think, to say, oh, this zone will do this, this zone will do that. We're on it, and Al-Fayed's team is is working on that, and as the process moves and as we discover more and more about Boumediene, we'll be tackling those at the same time.
spk02: Perfect. Thanks, guys. Really appreciate that. That's it from me, but just one request. We'd love to come visit Boumediene. A lot of our research team will be in London in various parts of June, July. Just putting that request out there, but I'll free up the line. Thanks very much, guys.
spk07: Well noted, Justin. Well noted. We will. It's a very nice trip to go to Bombardier. Alex likes it very much, so I'm sure he's putting that in his agenda.
spk02: I'm sure we would, too. Thank you.
spk01: Your next question comes from Don DeMarco with National Bank Financial. Please go ahead.
spk06: Oh, thank you, operator, and good morning, Ben Juan team. Congratulations on a solid quarter. So my first question has to do with the mining rates. So we've seen the mining rates trending higher, and we got another little jump in Q1, and I think the average is just over 900. But it seemed like in the month of March, you're hitting over 1,000. You've received some new equipment. So is that rate of just over 1,000 at the end of March, is that indicative of what we can expect for Q2 next? And then second part of that is what is your target for year end? Is it actually 1,200 tons per day or is that something beyond year end this year? Thank you.
spk05: Okay, so 2023 is obviously a ramp up year for us on the ground. And what drives that is to have a healthy stockpile before commissioning the plant. That being said, yes, we have good mining rates in Q1, and we do expect to continue to ramp this up in Q2. And we're so far going to plan. And to answer your second question, by year end, we want to have a 500 ton per day at the open pit and 1,200 ton per day underground. So this is our target. And yeah, that's going to plan.
spk06: Okay, thank you. And then just shifting to milling rates. So we see in Q1 that you're running over 800 tons per day. This is above main plate. What can we expect for the rest of the year? I mean, this also has been increasing. What is driving that increase? And do you expect to even crest a bit higher than the 800 we saw in Q1?
spk05: No, we don't expect to go above that. This is, you know, 800 tons per day. It's been a very good quarter in Q1. Sure, it's above a main plate of 700, but we are simply continuously improving the two small mills we have. Over the last two years of Gundyre, we've continuously improved the recovery, availability, and throughput. And as we attract more and more talent to join the team to help us out for commissioning the new plans, the same guys define new opportunities to improve things. So Q1 has been a very good quarter for throughput. And we're not planning to continue to improve it further than that. But 700 tons per day remains our nameplate. And we can expect to see good quarters at 800. But our focus is the expansion and to be ready for the expansion. And that remains true.
spk06: Okay. Thank you for that. That's very helpful. Good luck with Q2. That's all for me. Thank you.
spk07: Thank you. Thanks, Anna.
spk01: Your next question comes from Stephen Sook with Stiefel. Please go ahead.
spk10: Hi, Benoit and team. Thanks so much, and congrats on another great quarter. Just two questions on my side from the 2,000-ton-per-day construction. Any indication of how much of the contingency has been used now that you guys are about a third of the way through the overall project? And maybe if you can talk a little bit about the progress of critical path items and how those are going.
spk05: Okay, so on contingency, some days we save on the contingency, some days we lose on the contingency. It's dynamic as the construction goes, and what I can say about that is today not all contingency has been allocated for. So we remain confident to be on the budget, and it's all I have to say about that at this point. As per the critical path, today the pressure is on engineering, is on pouring concrete, and it's to finish earthwork. So we are still at this stage in construction. So Procrement is going well, although all long lead items have been ordered in the last 12 months or so. And engineering is also progressing well. So pressure remains on engineering and procurement. Critical path is stay on long lead item. And as any construction, we need to continuously put pressure on engineering and to follow up on our long lead. And construction is still on time, depending on all the different lots, whether it's the electrical line, the TSF, the plants, the underground mine. So, things are progressing according to plant, and we cannot let go of the pressure, and that's what the team is doing.
spk10: Great. No, it sounds like things are moving well there, and we'll stay tuned as that progresses. Switching tracks a little bit, and I know you talked to this To some degree, over to Boumediene, I mean, it's obviously expanding rapidly and you mentioned still a little bit early in the game for metallurgy, but do you have any indication of when we might expect to see, you know, kind of formal results of metallurgical testing in order to get a little bit more clarity on expected recoveries or even just metallurgical zones that are being defined and starting to be investigated?
spk05: So I think Hugo answered that. And to be, you know, to be maybe more clear on this is, We have enough work on metallurgy to justify ourselves to continue drilling Boumadin, that Boumadin is a good opportunity for us. So that being said, we won't put more effort into metallurgy until we see more clearly what Boumadin is. So the work that we wanted to do, we have done it. Now it's time to drill it. And I think we can expect within the next six to 12 months, to continue working on metallurgy, but now our focus is on drilling it.
spk10: Okay, yeah, understood. It seems, you know, with five rigs there, it's clearly worth pursuing. I guess it would be great to see from our side the results of that metallurgy work publicly.
spk08: Yeah, I think for now, you guys, you're going to have to trust that we're not spending money unwisely.
spk10: Fair enough. Great. No, that's all for me. Thanks so much for taking my questions today.
spk02: Thank you.
spk10: Thanks, Steve.
spk01: Your next question comes from John Slodnik with Desjardins. Please go ahead.
spk09: Hey, thanks, guys. And, yeah, for sure. I think all my questions have been asked. A lot of good ones so far. I'll just go with the standard inflationary pressures one and just seeing if you're seeing any – on the CapEx budget and whether you're experiencing any offsets there with the weaker Moroccan Durham than was budgeted.
spk08: Yeah. So I think, hi, John. So I think on inflationary pressures, a lot of our capital for construction is already committed. And we're actually seeing a lot of the inflationary pressures, I think, maybe that we're seeing in North America. For us, we don't feel them as much. The Durham for sure helps us. And so for us, it hasn't been a point where it's affecting budget. And so far for us, it hasn't been an issue to the point where it's affecting budget today.
spk09: Okay. No, that's great. And great to see a solid quarter from you guys and looking forward to more updates from Boomba Dean and the Schoonter expansion. Thanks, guys. Thank you.
spk01: Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the one. There are no further questions at this time. Please proceed.
spk07: Well, thank you very much, all of you, for attending our first conference. We will be back at the end of Q2, so in August. Otherwise, have a great summer, and we will continue to work. And as you know, we will be putting out a video once a month. We'll be putting out drill results on secondaire and on Boumadine in the coming weeks. So you will be kept informed of our development. So thank you again, and we'll see you mid-August. Thank you.
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