Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you clarify if the grade reconciliation issues at Rainy River are behind you, and if the current issues are in a different area? A: Jean-Francois Ravenelle, Vice President - Geology, explained that the current issues are not in the North Zone, where past problems occurred. The current challenges are in the area being mined now, with some high-grade ore pockets yielding lower tonnage than expected. Measures have been taken to mitigate future risks, and it is not expected to impact the 2025 and 2026 production outlook.
Q: With the underground crusher and conveyor system online at New Afton, how soon can we expect the mill to reach full capacity? A: Patrick Godin, President and CEO, stated that the system's early commissioning eliminates trucking constraints, improving efficiency. The ramp-up will be gradual, with C-Zone production increasing in the second half of 2025, aiming for 14,500 tonnes per day by December 2025.
Q: How are you managing to reduce costs at Rainy River despite lower production? A: Keith Murphy, CFO, highlighted cost control and optimization efforts, including improvements in drilling, blasting, haulage, and mill operations. Capital savings were achieved by performing tailings dam work internally and reclassifying some capital expenditures to operating expenses.
Q: What are the potential impacts of the early commercial production at New Afton on costs? A: Keith Murphy noted that the commissioning of the conveyor system reduces haulage costs and increases throughput. This trend of decreasing mining costs per tonne is expected to continue into 2025, aligning with historical cost profiles from earlier operations.
Q: Could you provide more details on the potential for a pushback or satellite pits at Rainy River? A: Luke Buchanan, Vice President - Technical Services, mentioned that a potential pushback to the main pit is being evaluated, with existing measured and indicated resources. Additional drilling is ongoing for satellite pits, with updates expected in the first quarter of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.