Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide a breakdown of expected CapEx spending for La Preciosa this year? A: Nathan Harte, CFO, explained that the majority of development expenditures are expected in Q2 and Q3, with a tapering off in Q4. The total guidance for CapEx is $5 to $6 million, with lighter spending in Q1 and heavier in Q2 and Q3.
Q: Are there any bottlenecks at the plant, and can the plant be expanded without additional permits? A: Peter Latta, VP Technical Services, noted that the plant is nearing its maximum throughput. While no additional permits are needed for expansion, a few pieces of equipment would be required to add an additional circuit, which is a straightforward process.
Q: Should we expect the current cost levels to continue into 2025? A: Nathan Harte, CFO, stated that they expect costs per ton to remain stable, with a goal to maintain or slightly reduce the all-in cost numbers from 2024, which were around $20.57 per ounce.
Q: When will the benefits of La Preciosa's ramp-up be realized? A: The company expects to see benefits in Q4 2025, with potential stockpiling to ensure full capacity operations. However, processing might start later in the year or in Q1 2026.
Q: Will there be a resource update for La Preciosa, and how will it be reported? A: Peter Latta confirmed a resource update is planned for next year. La Preciosa will be treated as a separate operation with its own financial metrics, similar to past practices with other deposits.
Q: What is the expected annual tonnage for La Preciosa once fully ramped up? A: The target is 4 to 500 tons per day in 2026, with long-term goals of around 1,500 tons per day, depending on further developments.
Q: What are the social conditions around the mines, given the US border situation? A: David Wolfin, CEO, stated that the area is safe, with no human trafficking issues. The company employs 450 people directly and impacts the local community positively through various initiatives.
Q: Can you elaborate on the peso hedging strategy? A: Nathan Harte explained that the company has contracts in place to limit downside exposure while allowing for upside, though they are not hedged near 50% of their OpEx.
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.