AUY - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you all for joining us this morning.

Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information, and actual results could differ from the conclusions or projections in that forward-looking information, which include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices and the cost and timing of the development of new projects.

For a complete discussion of the risks, uncertainties and factors, which may lead to actual financial results and performance being different from the estimates contained in the forward-looking statements, please refer to Yamana’s press release issued yesterday, announcing third quarter 2020 results as well as the management’s discussion and analysis for the same period and other regulatory filings in Canada and United States. I would like to remind everyone that this conference call is being recorded and will be available for replay today at 12’o clock PM Eastern Time. Replay information and the presentation slides accompanying this conference call and webcast are available on Yamana’s website at yamana.com. the to turn now will call Mr. over I Racine, President CEO. and Daniel

Daniel Racine

is for Thank conference and today Exploration. CFO Melanie. VP you, our joining Henry call. LeBlanc, Marsden, and you me quarter Thank of third all us Senior our our welcome With Jason to

their safe start me in times. and these again, their effort employees, contractors, all difficult Let for our keeping thanking suppliers, by family our operations

health, safety, First, environment corporate as about always let’s responsibility. our talk and

XX% frequency rate was Our improvement. total a representing recordable injury X.X,

to an Our is our on trust license significant our which social operate communities to a based is that all contributor surveys index, host COVID-XX the our continues across engagement response operation. indicates conducted increase on Evidence to and show in improvement.

thousands the host with on various of We’ve engaged We and early their stage needs. equipment challenging I QX can communities pandemic with our along the them everything have, our to of we understand partner help provided the respirators, needs to and supplies. sanitizer, said continue do closely will since this through those call, critical donation we address communities, as and other to gloves, medical period. support masks, and And

mine Places one Place programs was the the “XX Institute. of The Best Work to quarter, the Bahia” by During received Mine to awards. two Jacobina the in Great Work named of The Canadian Malartic

the improvement for O’Connell for compared Trophy Mining – recognized average. the records from which Quebec and industry F.J. the The first The the operations to operations, safety Quebec Association, in health the

from Commerce. Development the Val-d’Or was Award Chamber Sustainable second The the Environment of and

critical safety, management. environmental doing these we of stewardship and business, like recognitions, health, us proud sustainability, are We our the in right things of tell areas talent are which

a XXX,XXX as to Malartic, during of due million was and silver QX from Florida. Turning plan up Canadian sustaining strong during to increase quarter, per delivered quarter gold Peñón, costs produced above performance while highlights. the ounces was XXX,XXX restriction. Cerro both ramp were Sustaining guidance. after X and GEO and ounces operationally just declining now capital El exceptionally quarter due in from Silver of expected GEO COVID-XX-related strong supported suspensions Jacobina, quarter annual $X,XXX costs as production and per El GEO of standout Minera ounces and with of Peñón. financially. We by to another the production an the result in gold all-in Moro strong Canadian line following in Cash exceed QX temporary production. $XXX Malartic We

Cash our decrease. per and strongest of $XXX per and per as during ounce net an or year $X.XX share. million from $XX.X million Adjusted activities was flows the Cash or were cost $X.XX $XX.X expect $XXX million. QX operating quarter flow production to on basis. adjusted million the Cash activities million share. be a capital was such operation at or will We own million and adjusted were Net that includes earning before operating net earning quarter has working multiple from periods, on flows or we basis. discontinued. been an and were that million repayment Cash were flows high where in $XXX.X higher $XXX since change debt sold $XXX.X dividends before production

of had of the cash $XXX.X cash As $XXX.X equivalent and an million, from company XX, of of September increase QX. end the million

and months This improvements, further underground of development while the on borrow. Rica to cash growth the the limited Canadian to have without and and will business announced dividend fully to dividend effective all generative incoming having and our have to be form fund development obligation cash expansions, our dividend to during by QX. XXX% Jacobina hand and balance Alumbrera quarter, the also just increased liquidity plant Odyssey is policy exploration, XX% but at quarter, Malartic, increasing other our We we Agua related of level opportunities will Subsequent share $XX.XX we is that the and project about than and higher production XX sufficient to Jason to through ago. talk in more dedicate sheet integrated project, manage Subsequent guidance. per we the flow remarks. possible cash – excess balances increases. not dividend significant to his That our includes, annual dividend current to having

ounces. for This to Our silver forecast. previous forecast XXX,XXX a ounces and X% the increase of guidance compared is year now GEO our includes gold increased our this forecast production to previous previous a X% to XXX,XXX

update provide El an mines production optimization processing due At the strong while in project quarter the mill, another steady a operation, ounces. higher and to at XX,XXX than on production gold a achieving The was Looking grade strong X,XXX silver had state during tons I’ll greatly higher our of ore. per production throughput again, with above just production higher day. plan the from Peñón, moment. silver Jacobina resulted exceeded planned of QX

successful While ounces in of the costs. on its commercial with by gold due silver Barnat the The day, which well quarter expected to of Pataguas gold are grade contribution derives higher to underground X,XXX production driven optimized to Minera up productivity subsequent either in continue the result we grade. as Cerro and grade and is increased of quarter lower mining to capacity throughput largely and Don production stockpile its plant posted at expected now maintained Moro feed forward. in Florida a XX,XXX going Malartic produced as in grade process, higher X,XXX increased The zones. production and has transition grade and to precommercial reclaim continued due due government Barnat XX. feed higher ramp production the as The continuing full well XXth, with from higher restriction gold substantially to is returned improvement operating resulted to tons And September sectors. mine perform on declaring that grades per processing of from up. during production September in deposit and with strong normalize tons higher anticipate COVID-XX XX,XXX gold and and is lower QX, QX ounces temporary be expected higher to underground Leopoldo following ore to plant to to related ramp and grade

in strategic project, Turning updates. is and reiterate project combined largest and undeveloped the be one development the in copper and brownfield very for of have existing opportunity to a as the which deposit QX; the on in Agua we footprint, operation. with the gold is front to creates At unique the in Agua environmental with remain mine integration our Rica reduce world the managed which, Alumbrera Agua integration study our requirement continue our reduce integrated advance XXXX. would track us. after this derisk a for this our integration feasibility project results capital we complete project, to a Rica Argentina, excitement and Rica To expect of in project of Catamarca, Alumbrera

QX mentioned, per at the mine I was that X,XXX averaged This second the quarter throughput day. tons achieved straight Jacobina milestone. As this

X,XXX higher gravity the Phase X the in mid-XXXX. optimizing in X throughput. optimize well for set identified While is Jacobina it’s QX of the of the the with of Work at for project. to a circuit, commissioning expansion gold the above for objective concentration with investment. tons day recoveries result the Phase scheduled commenced that further modest recovery per the achieve We of and opportunities we target rate

X,XXX permitting As company The the of per variability already study project considerable the mid-XXXX. the to to the increase technical The underway. project day process XXX,XXX in At underground mentioned feasibility of before portal tons work, to construction Phase gold Phase following the the has X completion and offices, is which X to the of will infrastructure, been annual well Like also and reports surface ramp underway. the Canadian take the throughput expansion, advance expansion Malartic ounces. completed. intends production the is

production from Malartic seen in With to Gouldie our in mill release upper reported eventually development to start results and underground ore of will the allow platforms, on from to mining from drill the and project, for drilling drill this into South ramp Gouldie. and us with East underground the advance allow continuing providing East is Odyssey week, Malartic, will East exploration This the ramp complement haulage East be Odyssey from tighter from The production. Odyssey, definition and zones. November. used The excellent press as have potential may open pit feed higher-grade you scheduled

very by are We excited this the potential for encouraged the by results project. and

Henry Our talk will existing on exploration this and in about both team more at job; is generative doing an a our project moment. operation our outstanding and

quality, we’ll operational As our of prospective, objectives advancement align and a of financial expertise. these year jurisdiction, evaluate opportunities for and rate. results, allocation reserve million capital the mineral or to years compliment and internal requirement supporting with that in least the Such geology least investment exploration opportunities, at ounces opportunity inventories mine a achieve production meet would of minimum resource XXX,XXX at life at ounces per X.X to eight mineral acquisition

off handing to on public of listing to expanding Main trading further London the Stock York, highlight senior trading want we exchange XX, October adding I our profile. market to Exchange, Market Henry, Before in for and our that also on New the began existing Toronto another and

an entering there. over building to I the in turn exploration. be and it sharing And We’re with community UK that, market forward excited on the with update this Henry and look story investment our and to provide Europe, relationship will to to

Henry Marsden

high-level wherever it three the and gold advanced million overview generative inferred a of potential district potential. a to a includes program prospective of both support of mineral large currently one and exploration land a platform we scale stage can where all would within generative that program. produce we areas. of the our the at add The production see our of you, resource years, ounces build objective operate the XXX,XXX I’ll per Thank half year. projects objectives start key is Daniel. where countries, ounces most positions new highly corporate with program earlier We This and and targets least

the be have, commitment we pipeline organic the to able to and expect this do objective. quality We the meet Given to strong growth. projects corporate

to align assets actively the stage our with As extension corporate as exploration mentioned, as acquire an Daniel objectives. long of evaluate they as we advanced strategy, also opportunities

Manitoba winter on positive one north a are to located results a project pending. two to southwest Now, the potentially Lavra and in exploratory a kilometers also located test south At high-grade project in geology Lavra few flagship depth resource setting, first step Bahia, of offside geological the the in by Brazil, a quick site. XX of QX. of update this of program the the of I’ll is exploration good drill zones Lakes given drilling just The developing that to the program resource. holes company. and the base the in Monument this the a project. at results, with in South expect resource focused This with Jacobina Jacobina for we a mineralization Bahia on favorable continuing drill is immediately underground XXXX meter state, prolific to-date an expect Velha extension located located from further Norte extends planned to which key north surface for a in to-date we become completed deep exploration is Bay, some ongoing project located XX,XXX drilling There’s advanced mine. to the mine established shoots year-end, kilometers, project is drilling add covers quarter and the move the Canada to as Velha, in high-grade hole program in Twin at projects

additional X.X explore surface Barrocão, underway Exploratory drill drilling is the favorable the year, continue target our year. surface strike at end also extent to covering this QX priority initiated was targets. high Further a kilometer in basis. targets Yamana’s this During we of to the a exploration generate defined will we of the on is mineralized and as concessions of work one the and geological XX kilometers rates expect exploration

these confidence Canadian at and XX,XXX we on the zone and as Daniel Canadian and the East mentioned, we’re results to in programs round in we these that Gouldie general basis open the nature that is as well we Pernambuco grades to drilling the see on both the significantly significant drilling in on per both mineral gold at discovered we’ve core at width update improve for we this producing Malartic, located meters issued and by long going the I and exploration a East and surface massive large of XXX production continue higher you asset. a economics Gouldie, strike. may in also underground platform. consolidated and in try size seen the resource to would Malartic. to meters to project as we’re year have potential multi-hundred grade Borborema ongoing the extended an significantly confirmed find a multi-million space expanded to Wednesday long-life the extended in sulphide mine a results also represent Exploration exploration depth And of drilling provided resource at an the our drilling that very with with original mine other defined results results of for on see incorporated focused East, now infill QX of zone we into remains to exploration seeing completed East a to in a PA the exploration announced QX the discovered the be towards new and We deposit now Finally, to underground the ounce of state expect the Brazil’s year. to testing will and known Malartic the But are ounce last sites. thousand as turn defining a zone the year-end anomalies to discovery. at massive the zone that intercepts positive zone future better that proceed form that and gold Canadian recently zone project that the as expected the soil latest zone. QX project Gouldie, expected completed sulphide model XXXX. a step support last copper strike have drilling will year the be

drilling Cerro mineral of on further envelope potential mines Jacobina. to to very Sul Moro extends completed corridor. working the This the based parts Escondida-Zoe Canavieiras structural testing new continued from Canavieiras of targets mine. on new one Belo and drilling seen also envelope. also near to results in add at the new quarter slow the highest exploration João South. to inferred assay was expands in the pending property completed and mine infill the zone exploration drilling connector area good and still mineralized and in the that have system resource zone, although due times the most in clearly been Drilling the Belo in being Argentina the of positive mine. that this targets results core plunge continues at we area, and some test numerous Moving grade this of it We Sul this are focused within Central João the results. I’ve point. is exploration to main the mine at also on zone, the of interpretations turnaround We’ve the has provide

project. ton selected the exciting values on shown identified and that’s package. Selene is QX. Northern have expect us, going target vein larger for surface the targets, Peñón. the XX vein, I’ll work surface addition, currently targets grab in any XX,XXX of In significantly Surface on size in now from of from land the section meters drill gold than to target We’ve El samples, sections new ton one the located grams Moro the vein traced a Cerro ready other per we’re providing over to drill that some to gold in from to move assays chip gram per for

number of the has potential El new very Peñón sectors, for a positive from resources. Pampa Valle results Campamento, seeing We’re Paloma at from in results this drilling indicating year. and returned exploration indicated these El Infill excellent areas good especially veins

potential. drill We’re it’s excited about Colorada results. We’ve demonstrating the Sur, good at got drilling significant most success

depth and from see drilling yet we zone been for new zone results quarter significant extent but growth to the the for the mineralized excellent At expect significant has the of a of infill tested in as We incurred resources, add drill of Minera potential well. the mine. not much strike two cuts Florida,

from West Flor as for East financials. good We’re these been this new Polvorín high Exploration and positive over resources all to indicating good turn it number the mineral has well new to future numbers now able expand seeing veins, a areas. strong both core Leopoldo indicating results and from asset. discuss envelope, in of the the Florida La La potential Pataguas the to several as including Don of in I’ll the of at and a for grade consistently to Jason mine intercepts

Jason LeBlanc

and turning a good revenue you, everyone. XX% of morning, in $XXX.X to Henry, Thank same $XXX.X financial to now period was performance our the XXXX, quarter increase. million in compared million the

$XXX.X were during earnings compared essentially were $XX.X $X.XX XX% million year. were million excluding in quarter DD&A sale. pretty prior the the rose year margins, quarter earnings at the $XXX.X much share per from a share costs gross year $X.XX G&A million. from gain to flat in one-time as Chapada with to line benefited a costs earlier. However per last

the I at that being I total our to adjusted higher production categories expenses. a net ASIC an as costs expect the but bounced as QX, bigger we was QX, in some versus from the we million on $X,XXX over we’ll although recently in higher to Barnat September back from Barnat CapEx. One Malartic. $X.XX lowest income on associated CapEx and the see true increase expansionary in starting Barnat the flow of cash we cash high of $XXX.X exploration point ounces debt dividends to in attributable per approximately regarded. million that drop at $X.X but had noted, flow to repayments $XXX including from activities ASIC, quarter from from such on So while on margin in earnings of flow QX. to in million in flows QX, delays production further spending cash flow $X,XXX costs all with net expansion, in at QX. Jacobina in million as capital see precommercial we million improve production between including COVID benefited positive cash flexibility GEO share be to in rise drop the because more million through sheet that production the longer climbing $XXX.X costs from also about organic time, expect $XX.X has in doubled. $X.XX will mentioned combined activities for the excellent in project. the Quarterly portfolio. for balance a in the less Agua see treated to working levels X of XH million as year. integrated though opportunities XX, have operating despite will year, flows statement margin only before balance cash year these meaningful We’ll in no working with the the before QX, continued we’re $XX the be reductions to of company. other and normalized for at from These QX, free with and to mentioned, portfolio, periods margin cash Malartic prior a unit cash flexibility expansionary of but QX. the be cash side million able with adjust that, that for Said to ASIC, we for the of in expect costs, Rica for expect COVID in capital been Daniel cash has looking per excess capital priorities. flow back have basis, approximately that and flow QX, quarter, coming among cash quarter will for flow and sales QX, capital quarter have spending generating, the straight the beyond the costs a same cash still year. from doubled mines million representation Free flows same higher March, phase approximately or instead in being the quarter from on The declared and during our the in from will during quarter. the build operating COVID flow, QX. is the included the simply, cash that capitalized. back growth commercial reduction rose longer-term we at and last hand to we the above flows of dividend for consider hit $XXX.X but the capital be was about to the the flows we’re the generation this clear of allocation QX cash during that associated would out shorter-term an across down capital with compared we $XX capital the prior precommercial million delays a to precommercial been category its CapEx. change funds $XXX respectively $XXX.X if sixth cash translated to free multi-year increases. before and and $XXX.X operating our see continued these with movements generating to I the having would million. ounces underground invest opportunities also to a further give Malartic slide, to and the net we strong the debt.

balance achieving level share on of by contributing $XXX.X the further that going marketable the million. proceeds cash While at approximately a at And of advances Equinox same to the positive our allocation balance we start a mainly This been debt million, as million the flexibility. increasing all our net time, XXXX. saw quarter, cash particular, in the sheet back we $XX $XXX.X to in had during cash the decreased haven’t during to creating million. ending $XXX.X capital also balance objective X.X Gold totaled the of securities, quarter-end we’ve million net quarter sheet, the dividend. way

solid offset. QX we’ll we that production cash mentioned, higher have quarter lead our an the will to Despite on quarter growing I cash capital in flow expect balances. QX, that best as For free another also spending

per dividend, is a new and per will end a a first now dividend XXXX million floor. sufficient $XXX $XXX Our precaution drew with facility objectives, of the and as fund new $XXX which support we and providing during subsequent due ago. for reflect provides as the revolving increase policy of it cash per us of will million we in million a the on GEO announced Daniel the to XXX% GEO, extended credit the at our facility range end we dividend the flexibility October. for during dividends about also ounce cash QX. the annual repaid per basis, quarter level than the just per floor payment bringing per no three while reserves basis $XXX $X.XXX down a period we is mentioned, consistent reserve fully continue dividend quarter dividend share, to a as years prices. be for is which on months have to first rate million will GEO our we XX outstanding COVID gold the basis, to a to We dividend our longer further our an $XXX repay sustainability towards dividend our XX% higher with we on the undrawn our as even level. the at on to the share the increased pay and is

will generation any capacity new the cash dividends Going entirely be company. based the flows cash on above increases floor and forward, of

to correspondingly Daniel. rise now that, increase, with hand our flows. cash and percentage As And those cash dividend back the balances flows of our over I call will cash the will

Daniel Racine

leave In few Jason. a takeaways. with I’ll closing, you, you Thank

we QX. full strongest in latest is cash quarter, are executing well for of gold. the what our and We and – and significantly cycle also. are believe QX be exceptionally flow Meaning, are early costs into well hitting cash be historically planned in multi-year higher last now rising, in high Production a improving than flexibility. significantly is financial to quarter secular lower will our all balances sustaining cash costs our the and stages

your by invest are to be happy to while dividend. returns we’ll announced evidenced shareholder growth recently And that, operator? we increase take XX% continuing increase to result, the our well-positioned a As to with question. as in

Operator

question from Credit first go Instructions] The [Operator Fahad ahead. Tariq Please of is Suisse.

Your now line is open.

Fahad Tariq

Hi, Thanks questions. morning. for good taking my

of positive at think it update end back run on the First Moro, throughput rate Cerro a it, you’re call I was to, that September.

One differently the impact? is a in same what rate question, run far the of talk Can country more maybe, mitigate what’s and about kind at doing And of the having bit for of running well little below costs going also of the some Cerro the Thanks. you second COVID gold COVID-related your company-wide Moro capacity. to forward. you’re competitors part difficult

Daniel Racine

good morning, question. Well, Fahad and good

Moro, but for through all mitigate up, to have transport we quite we know, at the restriction, able So, things of Cerro done the had one Puerto improved landing runway, ramp the that of we Deseado. were long as quarter we airplane you because is, have the

the we them So, Deseado. our flew province, employees Puerto coming from outside to now

have to to easier it’s So, employees change. All they site. them our are tested before go to shift

have the Moro. Cerro we at a each days change XX So, shift

the way this. improved we’re So, we with have doing time

negative needs test the everybody going mine site. a to have before into So,

the a our from site at lot people working all administration to having We’re staff be mine on less honest home. mostly and are

from home. they sure make that established work have can we So, do their

only So, to to needed people going site. site go that or to

Cruz. of have coming Santa from We employees our increased number

into more before, XX% employees them outside. move transportation. But from had to around we coming the problem we people many we the also, with province So, from locally. avoid have of hired

So, this I end into of back by I but for north. is production before, why mentioned I same the Negro, call fully earlier. as province, it’s mentioned the will Cerro at further September, know we don’t in Cerro the it’s and the Moro.

case, in for the rate was X,XXX like is more I our run between X,XXX there people. So but maybe, mentioned tons and that difficulty per day.

was lot but Jason the for So, a can it’s run answer, rates, we’re part, higher second to going fully QX be we COVID to the costs. like in sure back for regarding maybe, production. than said, it

Jason LeBlanc

we’ll those makes cost in it and people we spend mentioned, instead as between have from some it’s those also, the certainty And carry of that that Cerro costs. province QX. people to to transporting decrease And be QX guess Yes. costs will continue we’ll in see I think and COVID that on getting the we’ll into – to operation and I physically then side, see back of had we’ll We the them sense thought Daniel And the on the QX out. lingering into really said, we’ve that moved forth. and transportation improve the money. of Moro

that. some additional on there’s So, costs

I probably at of being. those ability that costs assure dollars now. we’re million our Cerro time that it’s the that I those couple So, helps providing Moro would fall that, achieving for it’s throughput think say to right of for hit rates a

Fahad Tariq

great. Okay,

for $X.X a in going million the company-wide, as well? good forward cost like So, that is of run incremental QX you that rate incurred

Jason LeBlanc

No. really that bit to the transportation I Moro away. El Peñón little the just We and and there, to other a $X.X the think, half next mine than little of costs should see Cerro attributable seeing I and of a Moro similar expect that most lower was – prospectively, of is bulk Cerro under operations be we’re that really just these that’s of fade million,

Fahad Tariq

Got it. Okay.

on Okay. And anything any me. then provide you development on earlier you preference assets, the last can acquisition question that? stage mentioned from of XX, geographic slide

Daniel Racine

we’re at and if Fahad, countries Canada, opportunity are of four like going we so there’s into Chile. now, them. there, Any And working look then the we to right Argentina, Brazil,

opportunities – at and projects. with that – is our Jacobina and in at look Canadian any also, years happen priority there’s to will there’s four the are mentioned, we of top good one that exploration So, that, we’re our And both – like expansion be countries, within if mine the – them now. program going our these generative on first exploration Malartic. we next we think project, But three least

Fahad Tariq

clear. That’s very Thank Okay. you much.

Operator

question Eight next please is Profiti ahead. from of Thank Capital. go you. The Ralph

Ralph Profiti

capital Thanks one everyone. allocation questions. my on morning, Two please; them maybe, Canadian Daniel. Malartic, on and taking of one Good for

over dividend along next your few how sort of strategy maybe, capital The I’m is looking approach you these the are to and pool just structured see lay when the wondering, much fund out give exploration the be of this get first work? will you a of strategy, indication as frameworks put an the one dedicated the us generative same put to that reserve exploration – years? very generative and should this capital lines, and at we going Because cash see we as that’s to to

Daniel Racine

It a Yes. it good Ralph. very It’s is morning. Thank question. Yes, well you, aligned. Good is.

million the have years. $XX over We two next

was XXXX. in next the and the rest million million million There’s $XX in there $XXX in XXXX. year $XX So to

structured. very it’s So,

these have projects. We seven

think but projects our one mentioned, to be will of best so this least we for, at next we is looking we’re year. many ounces many potential produce to going then ounces focus times, we’re where XXX,XXX what X.X choose the and in million able And we to seven the have like these generate seven. then of the company, in years. And We three attention per projects

is objective touch our very it exploration separate clear. is after yes, exploration separate the see that doesn’t and that really we’re our that. budget. it’s that’s that happen. And the at then So, We’ll a really exploration clear on the what mine a of will generative program. from rest doing Then site,

Ralph Profiti

Okay.

Got it. Okay.

focused Gouldie, and on, at going you’re switch to Malartic, infill me Malartic from to Gouldie, Let and the at continuing is be East be could the to team East when East testing? how drilling testing receive QX we and this possibly, far is results away between depth a that from convergence Canadian is where then

Daniel Racine

Henry?

Henry Marsden

Yes. infilling The on Thanks, simply QX that of that Good in up focus drilling sort Ralph. shows longitudinal on section. around will envelope the question.

Ralph Profiti

Yes.

Henry Marsden

part meter We’re in also core kind deposit. doing the some of upper drilling the XX space of

XX of reasonably that expect slightly see we’ll the meters. higher a we resource high areas, in a few inferred end that, at confidence at confidence which see to a and So level

even the way testing some we step us doing we What fairly convergence we quite or are East We’re long drill XXXX. and within to seeing that and hole meters. don’t Gouldie out high-grade East project domain zones probably see that a of a are the positive a year from zone, in the XXX East the to especially – have can I actually significant out uptick, about

zone, simply we’re growing going remarkably focus to on continuous. So, core it’s that

down conversions be to possible, like So, the there. we’ll rather simply deeper just and zone than stepping growing drilling core out focusing much as as on

Ralph Profiti

it. Got

Thanks, Okay. Thanks, Daniel. Henry.

Daniel Racine

you. Thank

Operator

you. Carey Thank of from Genuity. Please question The next MacRury go Canaccord is ahead.

Carey MacRury

morning. good Hi,

a expecting you grades Cerro on us the you little out Moro Just could and for you’re wondering more if give at granularity QX? helping

Daniel Racine

these Carey. do have numbers? Jason, morning, you Good

Jason LeBlanc

Yes.

despite Cerro through steady we’ve at think Moro the COVID. at – I year pretty grade seen

maybe, going in to we grade is here moving on be be indicated for QX. a marginal We’re – Peñón going last El to is, move the reserve back what MD&A on night. towards we uptick we’re of grades as

So, way I that’s it. the – that’s think at that’s what look to

Carey MacRury

QX, production other similarly? the guidance given at the there Is the any, big the implied So step-up. is a pretty you pickups are assets expecting

Jason LeBlanc

Cerro throughput on you at grade think hit them. one with Moro I mentioned. of got the We’ve full Well,

was well. stockpiles working Malartic I as some through way think its also

impact the with that So, we’ll a in and grade in QX, uptick tonnage a has pretty, big pretty obviously, level. on production see there the

So, the operation. here. across QX a – quarter. strong pretty easy steady otherwise big what very it’s pointed very steady, a a and expect it’s infer it’s to probably out, But are those two It’s we as from issue you the

Carey MacRury

Then underground. XX,XXX the release, mentioned maybe, per a press on I your Malartic question in the mean, tons you day. getting

is wondering multiple shock sort is of just how there, just coming you declines? if to through from wondering XXXX, could walk the XXXX, you that if get XXXX, there Just or that? just XXXX into outline in

Daniel Racine

were partner Agnico based We’ll and then to to we and optimize our actual PA to be PA Well, year, team, on end early very continuous. mostly that together – our like team is and study. Carey, have three mine study but decision the the also we us – where all and PA resources, complete, at site, by partnership make our working the and of will year, have this mentioned completed next inferred the the

pit As is to we another seven still go the open right XXXX. now, the see production until from years

access production to XXXX. South now we can for we We’re bring to how can when in sure ramp Odyssey way the start as underground imagine sooner from into than in see the sometime underground XXXX, with going we’re probably November, to zone you going and

So, there’s a be high potential but that very there’s some that won’t production zone production. specifically, coming, XXXX starting in it from

production open think is how our see now can to focus the increase in pit. we mostly right I

in We around the actual on between the to increase reserve pit, the link can resources mentioned go other potential smaller potential is We Malartic ounces. other mine pit Barnat open extend pit in surface. have the or or that ideas Barnat and Canadian main

the is production during in companies that bring completed, on start the the it So, there’s go can the of two we XXXX, time we’re all production. to then and going see with with partner depends a when and the to on going XXXX, XXXX full work lot underground underground that and shaft years, the then how – that completed

Carey MacRury

Thank Great. you.

Operator

Instructions] go Thank Please from Mike following is National of Bank. ahead. you. Parkin [Operator The question

Mike Parkin

there on permits, gain permits any respect to Hi, with underground. Malartic need the for project? guys. follow-ups to just additional is some

Daniel Racine

Good morning, Mike.

exploration For the underground, the we have already permit.

So, go sample. drive a there’s to to the no problem bulk to ramp even

be So, that we’re eventually, going but won’t to change. have because on surface operation infrastructure to should transfer that the an permit not issue, an to

permitted So, the the tailings are there already mill. that’s

production, of many going tailings plenty times capacity bottom are assume then underground be have we full, Malartic tailing both at when the spaces. and As you there’s into then we’re And of to mine the when past, mentioned specialities to there when the – the the be of pit. the main in that the going comes can put depleted, Canadian will pits

lot work, less obtain you it’s So, basically or or don’t basically a is going to expansion do less permitted and any to lot surface underground. easy as be

going public no English, there’s doubt, no should hearing, I say, in from there’s resulting underground. So,

get So, permitted. a easier to lot

Mike Parkin

good. Sounds

thing you pit? to facilities the the with underground, for dealing that on any the were give does that to allocated beneficial ability as the other The open use impact pits closure costs

Daniel Racine

away driving from were We the right ramp pits. our two

the in the tailings So, in we’re Canadian put I pit. – main and planning pit mentioned, ways we won’t the Like also for Malartic mostly underground. use to

So use for other pits on will, be two accessing any the than because that, for have no that there’s really won’t – won’t after tailings, we it infrastructure build surface but to underground, the on real underground.

Mike Parkin

Right.

got sounds as near term the ramp, like with as Okay. you’ve exploration. well And focus the it then

significant So, still this a a made. go step-up terms likely decision It ahead waiting a kind on early off not capital, and partner in off have resource the be indicated PA, days, to recognizing made on kind the of construction your still would of but of this more reserve. we’re move you is when is you’re in that a

project? years on we you thinking kind this of are two out getting three spent would So, or capital significant see before

Daniel Racine

Again, you clear. made it

some the project on let We many will indicated, but and will inferred away then of PA inferred resources. approve mostly and competed, decision, make the there the years PA we’re but be capital. will not Mostly, the be

the of go give we And going drilling know the the lot if us the PA engineering then equipment. what to is gave development be ramp us, then going ordering years to do think – a we of to ramp ahead. wrap. we starting We’re development, lot to over We Then and two have is answer, the underground. a it’s the from next of happening

engineering So, there’s of done. already a lot

type underground. We of in have think can use, size the we we the of the mentioned shaft, of past the voice type we’re to achieve the tonnage, going from

we going So, then us if I wait and to away, out, ahead go XXXX, or at of going to And to away, are make us – a year about amount end the delayed we soon right excited But the project. wait, so next the really the to partner PA then seen looks quite more think do. be next what and it’s right in our both excited. time we go that seen if far, The there’s by far. we decision is year. decided it think far, but If not of The what as as we our we I is are so be have partner spend capital mine time will project. have postpone good so completed, PA we have to

that make to decision New will we So, in but wouldn’t go the we’ll before take be surprised Year, it very no-go. long or see the I

Mike Parkin

Okay.

of a source, we ore close throughput is saw day? the open a Sounds helping Barnat hit function good. of that per And kind side be historically things, pit to has in that a known good always to switching is XX,XXX what’s going the to software quarter, really over is that of tons been

Daniel Racine

the is going one now, Barnat horror softer that’s yes, same good. day, we’re move for having coming in a and down and It’s more then then to to big QX, QX. quarter. continue in We great The against do, know, getting the QX quite in go QX as shutdowns to production finally had where going in lot. improve. great it’s it’s in Barnat better it’s to putting into going and Barnat months Barnat tons factor but two as It’s a at better you was into at per Yes. of sure. the the despite is helping in Canadian bottom Malartic success the great bottom And

of shutdowns. two was remarkable able mill was this despite tonnage do the it that So, to

to one mine in more the you’re but for Barnat seems have in We plan ore starting. easier is on December, we’re It right. but just now,

to see improve a mine production the yes, at in quite seven to is have the we now. right helping but lot years, next So, Barnat

Mike Parkin

Super.

the Looking taking And again, forward for the fourth questions. thanks to quarter.

Daniel Racine

you. Thank

Operator

Thank you.

of Peel final Hunt. Please go is Our Tim question Huff ahead.

Tim Huff

Yes.

of Just the we questions, earlier a firmly production and follow-up looking forward as mode on one recovery I is, to into in head your fourth which you’re know quarter. still year-end

for into the more XXXX, cost we is given do we’ve going to potential the following in because efficiencies. cost initiatives production focus production Moro, Cerro if you’ve as year. on staffing I gold recovery and said a you I one more what the As with know head we simply your year, scope quite – little And initiatives respect to levels mean, producers from over or seen into that here. bit didn’t shifting two from of see

Daniel Racine

QX, see in Yes. an quarter was mine put and back this that achieved Good afternoon, Cerro that being forward. objective fully issue production. going into we Moro; We Tim. the first the to don’t

have quarter have production significantly QX three the continue this worked improvement. this we be going on as achieve will They to to whatever always compared in We cost improved is year. They first to higher year. of in improve

Cerro production, in cash all-in see costs same in increase costs, Moro. the decrease token then in at and on big sustaining and you’ll costs QX a also So,

any and than at the more be of decrease site our our costs, a doing year is impacted. projects like any costs ounces have do mines Moro to same have with and mines, produce soon people more – as production amount but thing of you efficient, costs mines, same four are and We like going there be of the being won’t each more other at Cerro the but also. as higher to lot fixed with our they the people

Tim Huff

That’s Thanks. Okay. great.

Daniel Racine

Thank you.

Operator

the time. back Racine. There over I’ll are questions further Mr. this turn registered no at to meeting

Daniel Racine

stay Thank everyone and on and joining you, to and Thank you quarter fourth bye-bye. We updating look take operator. you year-end Thank result safe. forward our care February. Please you us. in for

Operator

you. has Thank lines We time. The at this now ended. disconnect for your conference thank you your Please participation.

Yamana Gold (AUY) 30 Oct 202020 Q3 Earnings call transcript