The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Jody and team. Congratulations on getting through this tough period and also encouraged by the strong results in October. So maybe my first
question starts with that.
You mentioned that you got an average process grade of 4 grams per ton in October. And what can we expect for the rest of the year and into Q1
on grades? Certainly, you've got a lot of momentum and looking at a strong Q4, but would we expect that momentum to continue into Q1?
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Okay.
So I see the technical report calls for grades next year, I think, about just over 3 grams per tonne. So I think you mentioned that you expect these
4 grams per tonne to continue for a period of time. Does that suggest that production next year is going to be front-end loaded? That Q1 will be
heavier in order to kind of reach that 3 grams a tonne average grade over the year?
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Okay. That's great.
So we see that the guidance was revised upward. I mean, the new midpoint for AISC is now (inaudible) an ounce, still very attractive relative to
industry peers. But also referencing back to the technical report, we saw for 2023, it was $987, so there's about a $200 delta there. Of course, we
know that the Mexican peso has weighed on a number of operators in Mexico. But is it fair that we should, maybe in looking at our models, adjust
some of the AISC or costs in 2024 or '25 by -- up by a similar margin as we saw in 2023?
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Okay. Yes. Great. Well, then we'll recalibrate our estimates with those factors in mind as we await that guidance in Q1.
Now, you've got about $500 million left in CapEx to spend. And you may have covered this, but what are you thinking about impacts from the
Mexican peso or potential inflation on that number? Are you still pretty comfortable with that number? Or do you think there's -- those factors are
maybe putting a little bit of upward pressure on it?
Question: Don DeMarco - National Bank Financial, Inc., Research Division - Analyst
: Okay. Great. Well, that's all for me. And good luck with the rest of Q4, and congratulations also on that favorable [Sandvik] decision that just came
out this morning.
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