NYSEAMERICAN:SVM Silvercorp Metals Q2 2025 Earnings Report $3.52 -0.02 (-0.56%) Closing price 05/2/2025 04:10 PM EasternExtended Trading$3.54 +0.02 (+0.57%) As of 05/2/2025 08:00 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Silvercorp Metals EPS ResultsActual EPS$0.09Consensus EPS $0.08Beat/MissBeat by +$0.01One Year Ago EPSN/ASilvercorp Metals Revenue ResultsActual Revenue$68.00 millionExpected Revenue$67.90 millionBeat/MissBeat by +$100.00 thousandYoY Revenue GrowthN/ASilvercorp Metals Announcement DetailsQuarterQ2 2025Date11/7/2024TimeN/AConference Call DateFriday, November 8, 2024Conference Call Time12:00PM ETUpcoming EarningsSilvercorp Metals' Q4 2025 earnings is scheduled for Thursday, May 22, 2025, with a conference call scheduled at 4:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q4 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptInterim ReportEarnings HistoryCompany ProfilePowered by Silvercorp Metals Q2 2025 Earnings Call TranscriptProvided by QuartrNovember 8, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Thank you for standing by. Good afternoon. My name is Angeline, and I will be your conference operator today. At this time, I would like to welcome everyone to the Silvercorp Second Quarter Fiscal 2025 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. Operator00:00:21After the speakers' remarks, Thank you. And I would like to turn the conference over to Lon Shaver, President of Silverscorp. Please go ahead, sir. Speaker 100:00:49That's great. Thank you, Angeline. On behalf of Silvacorp, I'd like to welcome everyone to the call this morning. Today, we'll be discussing our Q2 for the fiscal 2025 financial results, which were released yesterday after market close. A copy of our news release, the MD and A and financial statements are available on our website and SEDAR Plus. Speaker 100:01:09Before we jump in, note that certain statements on today's call will contain forward looking information within the meaning of securities laws. Additionally, please review the cautionary statements in our news release as well as the risk factors described in our most recent regulatory filings. Now to recap our quarterly financial results, we delivered a strong fiscal Q2 with a near record quarterly revenue of $68,000,000 which was a 26% increase from last year's quarter. This growth was driven by a robust commodity market, which led to improvements in realized metals prices, particularly in China compared to the same quarter last year. In particular, the realized silver price rose by 34%, gold rose by 20%, lead rose by 15% and zinc was up 43 percent. Speaker 100:01:58Silver remains our most important metal and contributed 64% of our Q2 revenue, followed by lead at 20%. Just by comparison, silver was 58% of revenue in last year's fiscal Q2. The results continue to reinforce why investors should own our shares, namely demonstrating that we provide leverage to higher metals prices through the response in our financial results. Moving down the income statement. Attributable net income for the quarter was $18,000,000 or $0.09 per share. Speaker 100:02:29This is up from $11,000,000 or $0.06 per share in the comparative quarter. The increase in our bottom line reflects higher metals prices, a 4% increase in silver sold, 29% increase in zinc sold, along with a $4,000,000 gain on investments. These increases were partially offset by a 51% and a 13% decrease in gold and lead sold, a $3,000,000 increase in admin expenses, including costs related to our efforts and related to the transaction costs for closing the Adventist acquisition as well as a $2,000,000 loss in FX. Looking at cash flow from operating activities, we generated $23,000,000 this past quarter. This is down $6,000,000 from last year due to a $5,000,000 increase in income tax paid and a $5,000,000 increase in non cash working capital compared to a positive non cash working capital adjustment of $3,000,000 in the prior year quarter. Speaker 100:03:33If we adjust out changes in non cash working capital items, we generate $28,000,000 in operating cash flow in Q2, representing an 8% year over year increase. Additionally, we invested $28,000,000 in our mines and projects during the quarter. This is up 86% from last year, largely stemming from increased underground development, construction of the 3rd tailing storage facility at Ying and the mill expansion activities at Ying, as well as spending on the newly acquired El Domo and Condor projects. Despite the increase in capital expenditures, we ended the quarter with a strong cash position of 210,000,000 dollars This position does not include our investments in associates and other companies, which had a total market value of $84,000,000 as of September 30. New Pacific Metals was the lion's share of that, totaling $70,000,000 Turning our attention to our operating results. Speaker 100:04:29As we reported in October, our mines performed as expected in Q2. We mined 361,000 tonnes and milled 209,000 tonnes of ore during the quarter, representing year over year increases of 32% 14%, respectively. Due to higher quarterly output, our production of silver and zinc increased by 4% 26%, respectively. But gold and lead production decreased by 52% 18%, respectively, due to lower head grades during the quarter. Year to date, we have produced 3,400,000 ounces of silver, 2,300 ounces of gold and 29,000,000 pounds of lead, along with £12,000,000 of zinc. Speaker 100:05:11We remain confident in achieving our annual production guidance set in April as we process the stockpile of 129,000 tonnes of ore in the second half of our fiscal year at our newly expanded milling facility, which we are now in the midst of commissioning. On the unit cost front, production costs averaged $82 per tonne in Q2, 2% higher than last year's results due to more mining preparation tunnels and grade control drilling completed and expensed as part of the mining costs in the current quarter. Year to date production costs averaged $81 per tonne, slightly higher than our annual cost guidance of $77 to $80 per tonne. Our cash cost per ounce silver net of byproduct credits was negative $0.74 in Q2, higher than the negative dollar in the prior year quarter due to the same factors impacting the unit production costs, partially offset by higher byproduct credits. The all in sustaining production costs decreased by 3% year over year to $146 per tonne in Q2, driven by a 4% reduction in sustaining capital expenditures per tonne, resulting from higher mill throughput. Speaker 100:06:20Additionally, year to date all in sustaining production costs of $143 per tonne remains below our annual cost guidance of between $144 to $152 per tonne. Our all in sustaining cost per ounce of silver net of byproduct credits was $11.65 which was 1% higher than Q2 of last year due to the previously mentioned increase in cash cost per ounce of silver. Turning to the Ying Growth projects, the Mill 2 capacity expansion has been completed on time and on budget. And as I mentioned earlier, commissioning is now underway. Recall that the project will expand Ying's total production capacity to 4,000 tonnes per day from 2,000 500 tonnes per day. Speaker 100:07:04Additionally, construction of Phase 1 of the 3rd tailings facility at Ying, which will hold 10,000,000 cubic meters of tailings is substantially complete and commissioning of this facility is underway. It should be ready to receive tailings by the end of November of this month. As a reminder, this is a 2 phase facility that will ultimately hold 19,000,000 cubic meters of tailings. Regarding the Kuangping satellite deposit, the environmental impact assessment report was approved in July, the mine safety design report was approved in September and the final approval for mine construction is pending receipt from the province. We expect to commence development this fiscal year and have allocated $1,000,000 for mine construction in our fiscal 2025 budget. Speaker 100:07:52Turning our attention to Ecuador. Since the acquisition, we have diligently reorganized our operational structure in Ecuador. At our fully permitted El Domo Copper Gold project, we have undertaken a number of activities, including a review of the execution plan, specifically related to the contracting, purchasing and construction sequencing. We have completed 800 meters of metallurgical drilling to support a test program, which is aimed at optimizing the process flow sheet for improved gold recovery in the copper concentrate. And we've continued further engineering work to refine the mine layout and processing plant, which includes adjustments such as relocating the camp and mill building to reduce civil excavation, moving the maintenance shop closer to the plant to share electrical infrastructure and revising surface water management plans to simplify construction and reduce excavation and concrete needs. Speaker 100:08:48These efforts paved the way for a smooth transition to mine construction, which we intend in early 2025 and remain optimistic for initial production targeted for the second half of calendar twenty twenty six. At the prospective Connor project, our focus has been on completing a resource review to assess future development plans and initiating site control activities in preparation for the start of on ground exploration work. We continue to develop an exploration plan as we further our understanding of the project. We remain dedicated to working collaboratively with the government of Ecuador, local communities and Salazar Resources, our in country partners. Our commitment to modern responsible development will benefit both the local communities and the country as a whole. Speaker 100:09:33We intend to provide more details on our work plans for El Domo and Condor in the near future. And with that, I would like to open the call for questions. Operator00:09:46Thank you, sir. Ladies and gentlemen, we will now conduct the question and answer session. The first question comes from Joseph Rigor from ROTH Capital Partners Analyst. Please go ahead. Speaker 200:10:21Hey, Lon. Thanks for taking the questions and congrats on a good solid quarter. Speaker 100:10:26Thanks, John. Speaker 200:10:28I guess first thing on El Domo, so I saw that there was an appeal of the first decision there from the lower court and then that appeal has been heard, but there hasn't been a resolution yet. When do you guys think you'll get an update? You have a rough idea on timing and then is there additional appeals that could occur? And how might those things impact you guys as far as CapEx spending next fiscal year? Speaker 100:10:57Yes, the appeal was heard on 17th October and we're awaiting a formal ruling to be issued, which we expect to come in the next few weeks. We think it will find in favor of the government with respect to the validity of the permit. Following that, our understanding is that this court this case could be picked up by the constitutional court. But how, when and what it would mean from a timing standpoint is unclear at this time. Our view would be that with a positive ruling at this provincial level, we would be in a position to proceed with our expenditure plans starting early next year. Speaker 200:11:46Okay. So that sounds good. And I guess the other thing I saw going to the release was with your license extension at Ying, there's a payment potential payment required. In the event you guys do have to make that payment, when would you make it? And then would it be something that would roll through like the income statement as a government tax fee or would it run through like your cash flow statement from accounting standpoint? Speaker 100:12:15Good question on which statement. I have to check on that. We have had these payments in the past. If you go back and look at previous renewals, these are tied into basically the process of identifying the resource base that you're permitting for. And then there's basically a fee associated with that resource. Speaker 100:12:38So as you find more and you continue to produce and renew your payments renew your permits based on go forward resources and reserves, those payments can get triggered. We would expect that we would pay this here within the next month. Speaker 200:12:55Okay. So I guess fiscal Q3. And then that extension gets you guys through I guess 2,035 and then you'd have to essentially reapply for another extension. Is that how that works? It's been a little while since you guys had to do one. Speaker 100:13:13Yes. The last one we did was for the TLP Longman mining permit and that one was renewed in the spring of 2021. So if you look through our materials, there's a schedule associated with these renewal dates. And this was the next one up on the schedule. I believe it's a few years until the next one comes up. Speaker 200:13:41Okay. Thanks. I'll turn it over. Speaker 100:13:43Okay. Thanks, Joe. Operator00:13:46Thanks, Joe. Your next question comes from Felix Sheffigalyn from 8 Capital. Please go ahead. Speaker 300:13:56Yes. Morning, Lon. Congratulations on the quarter. Just a couple of quick questions from me. The 129,000 ton stockpile that's been amassed over the past two quarters, how long do you think it'll take you to kind of work through that? Speaker 100:14:13We are anticipating that we would get through it through the balance of the current quarter and the Q4. Speaker 300:14:21Got you. And while you're kind of working through that stockpile material, should we be expecting mining rates to be kind of in the same range as we've seen in fiscal 'twenty five so far, so kind of 250,000 to 170,000 tons per quarter? Or like is that kind of roughly the range that we should be looking at? Or is that like is or is that would that be potentially reduced while you're working through the stockpile? No, mining should continue at these rates. Speaker 100:14:52The one thing that obviously recall in Q4 with Chinese New Year, we usually have a slower quarter and that should be the case again this year from a mining standpoint. So you should work that seasonality into your tonnage forecast for mining. But from a milling standpoint, we're not looking at seeing a reduction in milling rate and plan to run the mill throughout the quarter. Gotcha. The purchases of getting that catch up. Speaker 300:15:24Yes. And just a quick question. On Kuangpieng, you said there was an amount that was budgeted for, I development activities in Kuangping in fiscal 'twenty five. How much did you say that was? That was $1,000,000 Just $1,000,000 Okay. Speaker 300:15:39And that will be focused on is that drilling or some like preparatory work? Speaker 100:15:44No, that would be basically mine development. So starting to decline down to the resource areas to further delineate them and with a view to bringing them into reserves and or production. Operator00:16:03Phil. Thank you.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallSilvercorp Metals Q2 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsInterim report Silvercorp Metals Earnings HeadlinesSilvercorp Announces the Construction Plan and Schedule for the Development of the El Domo ProjectApril 23, 2025 | prnewswire.comSilvercorp Metals provides FY26 production guidanceApril 17, 2025 | markets.businessinsider.comTrump’s Bitcoin Reserve is No Accident…Bryce Paul believes this is the #1 coin to buy right now The catalyst behind this surge is a massive new blockchain development…May 4, 2025 | Crypto 101 Media (Ad)Silvercorp Metals Inc.'s (TSE:SVM) largest shareholders are individual investors with 60% ownership, institutions own 36%March 25, 2025 | finance.yahoo.comCelsius executives and Silvercorp join share placementMarch 20, 2025 | investing.comIs Silvercorp Metals Inc. (SVM) the Most Undervalued Silver Mining Stock to Buy According to Analysts?March 15, 2025 | insidermonkey.comSee More Silvercorp Metals Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Silvercorp Metals? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Silvercorp Metals and other key companies, straight to your email. Email Address About Silvercorp MetalsSilvercorp Metals (NYSEAMERICAN:SVM), together with its subsidiaries, engages in the acquisition, exploration, development, and mining of mineral properties in China. The company primarily explores for silver, gold, lead, and zinc metals. It holds a 100% interest in the Kuanping silver-lead-zinc-gold project located in located in Shanzhou District, Sanmenxia City, Henan Province, China; Ying project located in the Ying Mining District in Henan Province, China; Gaocheng (GC) mine located in Guangdong Province, China; and Baiyunpu (BYP) mine located in Hunan Province, China. The company was formerly known as SKN Resources Ltd. and changed its name to Silvercorp Metals Inc. in May 2005. 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There are 4 speakers on the call. Operator00:00:00Thank you for standing by. Good afternoon. My name is Angeline, and I will be your conference operator today. At this time, I would like to welcome everyone to the Silvercorp Second Quarter Fiscal 2025 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. Operator00:00:21After the speakers' remarks, Thank you. And I would like to turn the conference over to Lon Shaver, President of Silverscorp. Please go ahead, sir. Speaker 100:00:49That's great. Thank you, Angeline. On behalf of Silvacorp, I'd like to welcome everyone to the call this morning. Today, we'll be discussing our Q2 for the fiscal 2025 financial results, which were released yesterday after market close. A copy of our news release, the MD and A and financial statements are available on our website and SEDAR Plus. Speaker 100:01:09Before we jump in, note that certain statements on today's call will contain forward looking information within the meaning of securities laws. Additionally, please review the cautionary statements in our news release as well as the risk factors described in our most recent regulatory filings. Now to recap our quarterly financial results, we delivered a strong fiscal Q2 with a near record quarterly revenue of $68,000,000 which was a 26% increase from last year's quarter. This growth was driven by a robust commodity market, which led to improvements in realized metals prices, particularly in China compared to the same quarter last year. In particular, the realized silver price rose by 34%, gold rose by 20%, lead rose by 15% and zinc was up 43 percent. Speaker 100:01:58Silver remains our most important metal and contributed 64% of our Q2 revenue, followed by lead at 20%. Just by comparison, silver was 58% of revenue in last year's fiscal Q2. The results continue to reinforce why investors should own our shares, namely demonstrating that we provide leverage to higher metals prices through the response in our financial results. Moving down the income statement. Attributable net income for the quarter was $18,000,000 or $0.09 per share. Speaker 100:02:29This is up from $11,000,000 or $0.06 per share in the comparative quarter. The increase in our bottom line reflects higher metals prices, a 4% increase in silver sold, 29% increase in zinc sold, along with a $4,000,000 gain on investments. These increases were partially offset by a 51% and a 13% decrease in gold and lead sold, a $3,000,000 increase in admin expenses, including costs related to our efforts and related to the transaction costs for closing the Adventist acquisition as well as a $2,000,000 loss in FX. Looking at cash flow from operating activities, we generated $23,000,000 this past quarter. This is down $6,000,000 from last year due to a $5,000,000 increase in income tax paid and a $5,000,000 increase in non cash working capital compared to a positive non cash working capital adjustment of $3,000,000 in the prior year quarter. Speaker 100:03:33If we adjust out changes in non cash working capital items, we generate $28,000,000 in operating cash flow in Q2, representing an 8% year over year increase. Additionally, we invested $28,000,000 in our mines and projects during the quarter. This is up 86% from last year, largely stemming from increased underground development, construction of the 3rd tailing storage facility at Ying and the mill expansion activities at Ying, as well as spending on the newly acquired El Domo and Condor projects. Despite the increase in capital expenditures, we ended the quarter with a strong cash position of 210,000,000 dollars This position does not include our investments in associates and other companies, which had a total market value of $84,000,000 as of September 30. New Pacific Metals was the lion's share of that, totaling $70,000,000 Turning our attention to our operating results. Speaker 100:04:29As we reported in October, our mines performed as expected in Q2. We mined 361,000 tonnes and milled 209,000 tonnes of ore during the quarter, representing year over year increases of 32% 14%, respectively. Due to higher quarterly output, our production of silver and zinc increased by 4% 26%, respectively. But gold and lead production decreased by 52% 18%, respectively, due to lower head grades during the quarter. Year to date, we have produced 3,400,000 ounces of silver, 2,300 ounces of gold and 29,000,000 pounds of lead, along with £12,000,000 of zinc. Speaker 100:05:11We remain confident in achieving our annual production guidance set in April as we process the stockpile of 129,000 tonnes of ore in the second half of our fiscal year at our newly expanded milling facility, which we are now in the midst of commissioning. On the unit cost front, production costs averaged $82 per tonne in Q2, 2% higher than last year's results due to more mining preparation tunnels and grade control drilling completed and expensed as part of the mining costs in the current quarter. Year to date production costs averaged $81 per tonne, slightly higher than our annual cost guidance of $77 to $80 per tonne. Our cash cost per ounce silver net of byproduct credits was negative $0.74 in Q2, higher than the negative dollar in the prior year quarter due to the same factors impacting the unit production costs, partially offset by higher byproduct credits. The all in sustaining production costs decreased by 3% year over year to $146 per tonne in Q2, driven by a 4% reduction in sustaining capital expenditures per tonne, resulting from higher mill throughput. Speaker 100:06:20Additionally, year to date all in sustaining production costs of $143 per tonne remains below our annual cost guidance of between $144 to $152 per tonne. Our all in sustaining cost per ounce of silver net of byproduct credits was $11.65 which was 1% higher than Q2 of last year due to the previously mentioned increase in cash cost per ounce of silver. Turning to the Ying Growth projects, the Mill 2 capacity expansion has been completed on time and on budget. And as I mentioned earlier, commissioning is now underway. Recall that the project will expand Ying's total production capacity to 4,000 tonnes per day from 2,000 500 tonnes per day. Speaker 100:07:04Additionally, construction of Phase 1 of the 3rd tailings facility at Ying, which will hold 10,000,000 cubic meters of tailings is substantially complete and commissioning of this facility is underway. It should be ready to receive tailings by the end of November of this month. As a reminder, this is a 2 phase facility that will ultimately hold 19,000,000 cubic meters of tailings. Regarding the Kuangping satellite deposit, the environmental impact assessment report was approved in July, the mine safety design report was approved in September and the final approval for mine construction is pending receipt from the province. We expect to commence development this fiscal year and have allocated $1,000,000 for mine construction in our fiscal 2025 budget. Speaker 100:07:52Turning our attention to Ecuador. Since the acquisition, we have diligently reorganized our operational structure in Ecuador. At our fully permitted El Domo Copper Gold project, we have undertaken a number of activities, including a review of the execution plan, specifically related to the contracting, purchasing and construction sequencing. We have completed 800 meters of metallurgical drilling to support a test program, which is aimed at optimizing the process flow sheet for improved gold recovery in the copper concentrate. And we've continued further engineering work to refine the mine layout and processing plant, which includes adjustments such as relocating the camp and mill building to reduce civil excavation, moving the maintenance shop closer to the plant to share electrical infrastructure and revising surface water management plans to simplify construction and reduce excavation and concrete needs. Speaker 100:08:48These efforts paved the way for a smooth transition to mine construction, which we intend in early 2025 and remain optimistic for initial production targeted for the second half of calendar twenty twenty six. At the prospective Connor project, our focus has been on completing a resource review to assess future development plans and initiating site control activities in preparation for the start of on ground exploration work. We continue to develop an exploration plan as we further our understanding of the project. We remain dedicated to working collaboratively with the government of Ecuador, local communities and Salazar Resources, our in country partners. Our commitment to modern responsible development will benefit both the local communities and the country as a whole. Speaker 100:09:33We intend to provide more details on our work plans for El Domo and Condor in the near future. And with that, I would like to open the call for questions. Operator00:09:46Thank you, sir. Ladies and gentlemen, we will now conduct the question and answer session. The first question comes from Joseph Rigor from ROTH Capital Partners Analyst. Please go ahead. Speaker 200:10:21Hey, Lon. Thanks for taking the questions and congrats on a good solid quarter. Speaker 100:10:26Thanks, John. Speaker 200:10:28I guess first thing on El Domo, so I saw that there was an appeal of the first decision there from the lower court and then that appeal has been heard, but there hasn't been a resolution yet. When do you guys think you'll get an update? You have a rough idea on timing and then is there additional appeals that could occur? And how might those things impact you guys as far as CapEx spending next fiscal year? Speaker 100:10:57Yes, the appeal was heard on 17th October and we're awaiting a formal ruling to be issued, which we expect to come in the next few weeks. We think it will find in favor of the government with respect to the validity of the permit. Following that, our understanding is that this court this case could be picked up by the constitutional court. But how, when and what it would mean from a timing standpoint is unclear at this time. Our view would be that with a positive ruling at this provincial level, we would be in a position to proceed with our expenditure plans starting early next year. Speaker 200:11:46Okay. So that sounds good. And I guess the other thing I saw going to the release was with your license extension at Ying, there's a payment potential payment required. In the event you guys do have to make that payment, when would you make it? And then would it be something that would roll through like the income statement as a government tax fee or would it run through like your cash flow statement from accounting standpoint? Speaker 100:12:15Good question on which statement. I have to check on that. We have had these payments in the past. If you go back and look at previous renewals, these are tied into basically the process of identifying the resource base that you're permitting for. And then there's basically a fee associated with that resource. Speaker 100:12:38So as you find more and you continue to produce and renew your payments renew your permits based on go forward resources and reserves, those payments can get triggered. We would expect that we would pay this here within the next month. Speaker 200:12:55Okay. So I guess fiscal Q3. And then that extension gets you guys through I guess 2,035 and then you'd have to essentially reapply for another extension. Is that how that works? It's been a little while since you guys had to do one. Speaker 100:13:13Yes. The last one we did was for the TLP Longman mining permit and that one was renewed in the spring of 2021. So if you look through our materials, there's a schedule associated with these renewal dates. And this was the next one up on the schedule. I believe it's a few years until the next one comes up. Speaker 200:13:41Okay. Thanks. I'll turn it over. Speaker 100:13:43Okay. Thanks, Joe. Operator00:13:46Thanks, Joe. Your next question comes from Felix Sheffigalyn from 8 Capital. Please go ahead. Speaker 300:13:56Yes. Morning, Lon. Congratulations on the quarter. Just a couple of quick questions from me. The 129,000 ton stockpile that's been amassed over the past two quarters, how long do you think it'll take you to kind of work through that? Speaker 100:14:13We are anticipating that we would get through it through the balance of the current quarter and the Q4. Speaker 300:14:21Got you. And while you're kind of working through that stockpile material, should we be expecting mining rates to be kind of in the same range as we've seen in fiscal 'twenty five so far, so kind of 250,000 to 170,000 tons per quarter? Or like is that kind of roughly the range that we should be looking at? Or is that like is or is that would that be potentially reduced while you're working through the stockpile? No, mining should continue at these rates. Speaker 100:14:52The one thing that obviously recall in Q4 with Chinese New Year, we usually have a slower quarter and that should be the case again this year from a mining standpoint. So you should work that seasonality into your tonnage forecast for mining. But from a milling standpoint, we're not looking at seeing a reduction in milling rate and plan to run the mill throughout the quarter. Gotcha. The purchases of getting that catch up. Speaker 300:15:24Yes. And just a quick question. On Kuangpieng, you said there was an amount that was budgeted for, I development activities in Kuangping in fiscal 'twenty five. How much did you say that was? That was $1,000,000 Just $1,000,000 Okay. Speaker 300:15:39And that will be focused on is that drilling or some like preparatory work? Speaker 100:15:44No, that would be basically mine development. So starting to decline down to the resource areas to further delineate them and with a view to bringing them into reserves and or production. Operator00:16:03Phil. Thank you.Read morePowered by