i-80 Gold Corp. Q4 FY2023 Earnings Call

Good morning. My name is Ludi and I will be your conference operator today. I would like to welcome everyone to the i-80 Gold Corp. Fourth Quarter and Full Year 2023 Financial and Operating Results Conference Call. Mr. Downie, you may begin your conference.

Hi and thank you for attending today's Q4 and year-end 2023 financial and operating results presentation. On the second slide of the presentation, the people who are attending on behalf of the company are: myself, the CEO; Matt Gili, the President and Chief Operating Officer; Ryan Snow, our CFO; and Matt Gollat, Executive Vice President. At the end of the presentation, we will take a few questions. We've got another commitment shortly after it ends, so we will only be taking 2 or 3 but as always, people can contact the company if they have any further questions. Slide 3 is our standard disclaimer statement. I urge everybody to read it prior to or in conjunction with this presentation today. On Slide 4, 2023, despite the challenging market conditions, was a year that we realized numerous achievements. The Ruby Hill property was consolidated through the acquisition of Paycore that secured 100% of the high-grade FAD deposit. That is expected to be one of the highest-grade polymetallic deposits, if not the highest-grade polymetallic deposit in our portfolio once we bring it to 43-101 resource. We completed more than 60,000 meters of drilling to increase the quality of our mineral resources and also to expand mineralization and we realized significant success in those exploration and expansion programs. We also completed nearly 4,000 meters of underground development as we continued to do the test mining program at Granite Creek, and we also secured a long-term dewatering strategy that included the installation of a new deeper well to enhance our dewatering capabilities there. That will allow us to progress to develop the South Pacific zone that is expected to become the primary deposit in that project. We also were able to secure in the difficult market, sufficient capital to advance our strategy to become the second largest producer in the State of Nevada. The realization of a joint venture, we announced during the year, our intention to bring in a partner to assist in the advancement of the Ruby Hill project. That was done partially to assist with our financing capabilities and also a partner who can assist when it comes to polymetallic mineralization. That partnership agreements are actively being advanced and we expect that to be announced during the second quarter of this year. The exploration success we had at all projects was, in my opinion, very significant. The reconciliation in the definition drilling both at McCoy-Cove and at Granite Creek has been quite exceptional. We'll be touching on that in our upcoming slides. The delineation of the expansion in the Hilltop target at Ruby Hill that remains wide open saw some of the best results we released as a company to date. We also demonstrated that both the FAD deposit and the Blackjack deposits are also wide open for expansion. When we get to Ruby Hill, I'll also talk about a single hole we drilled for the expansion of gold that intersected a very significant intercept. So with that, I'm going to hand over the next few slides to our Chief Financial Officer, Ryan Snow, to talk about the gold we did sell. We haven't yet declared commercial production. We are still doing additional drilling to firm up reserves. And with that, we expect to ultimately deliver our first feasibility study on Granite Creek and also the announcement of full production for that site. So with that, I'll hand it over to Ryan.

Thanks, Ewan. Yesterday after market close, the company reported our financial statements and MD&A for the fourth quarter and full year of 2023. They can be found on SEDAR, EDGAR and our website. On Slide 5 of the presentation, we provide a graph of our production and sales by quarter for the year. This production is from residual leaching activities at both Ruby Hill and Lone Tree and the oxide material on leach from Granite Creek that we have produced and sold. In addition, in the fourth quarter, we sold 29,512 tons of sulfide mineralized material from Granite Creek, containing approximately 7,700 ounces. Sales were 11,049 ounces for the quarter and 22,312 ounces for the year, including the sulfide mineralized material. As discussed in the Q3 update, the company saw a significant increase in gold sales in Q4 related to the sale of the sulfide material. In addition to the gold ounces sold, the company sold 31,711 tons of mineralized material under the ore purchase agreement in the quarter, bringing the year-to-date total to 54,421 tons of mineralized materials sold. These sales generated revenue of $6.5 million and $13.8 million, respectively. Additional highlights on Slide 6 of the presentation show our revenue for the quarter of $25.8 million, bringing year-to-date revenue to $54.9 million. The company generated mine operating income of $2.6 million for the fourth quarter, reducing the year-to-date mine operating loss to $5.1 million. The mine operating losses year-to-date were primarily the result of write-downs of leach pad inventory at both Ruby Hill and Lone Tree, totaling $9.9 million. The company reported a net loss for the quarter of $31.9 million or $0.11 per share. When adjusted for the impact of mark-to-market losses on the company's convertible debt, outstanding warrants, gold prepaid and silver purchase and sale agreements, the loss was $21.5 million or $0.07 per share. For the year, the company was in a loss position of $65.2 million or $0.24 per share. And when adjusted for the items previously mentioned, reported adjusted loss for the year of $86.9 million or $0.32 per share. During the quarter, the company continued to invest in exploration, evaluation and predevelopment with $8.8 million invested, bringing the total 2023 investments to $38.9 million. This investment continued to produce many great assay results, a summary of which were provided in our press release yesterday and will be touched on later in this call. Slide 7 of the presentation highlights the company's liquidity position. In 2024, the company raised sufficient capital to advance our strategy. We made the first, second, third and fourth contingent payments related to the acquisition of Ruby Hill totaling $47 million, of which approximately half was cash and we ended the year with $16.6 million in cash, $44 million in restricted cash and had an inventory balance of $11.4 million. Finally, I'd like to point out that subsequent to year-end, the company completed a private placement of shares totaling approximately CAD 23 million. Now, I'll turn the call back over to Ewan Downie.

Thank you, Ryan. So I'm going to talk a bit about what we've done as a company during '23 and what we're looking to achieve here in 2024. I think we've seen a significant increase in gold price early this year and that's starting to translate into some additional interest in the gold sector; interest that we didn't see very much in 2023 as most gold investors and gold mining companies can attest to. However, I think there's a platform for gold here to move significantly higher, has a perfect setup with the debt of various countries, including the United States, underpinning the value of gold, and assuming that there is going to be some reduction in the interest rate levels, I would expect that will be a perfect storm for gold to appreciate significantly higher. So I'm looking forward to a very strong year for the gold sector for the gold price. And with that, we should see improved interest from gold companies. So looking at Slide 8 of our presentation, i-80 Gold is a pure-play gold producer focused entirely on the United States. 100% of our projects are in Nevada. Nevada is currently ranked as one of the world's most favorable mining jurisdictions and is currently ranked number 1 by the Fraser Institute. We are currently one of the largest holders of gold and silver resources in all of the United States and we're looking to transition those resources into production over the next several years to become the second largest gold producer in the United States on a gold equivalent basis. We've been very successful at building a very strong management team and operations team in Nevada and that's headed by Matt Gili, who's our President and runs the Reno office for the company. Looking at some of the team on Slide 9, we've...this team has very deep experience in building operating mines in Nevada and also in the construction of plants, including refractory plants which is very important for the longevity of a company in the state. On the next slide, Slide 10. Why are we in Nevada only? Primarily because it is a great state for working. There's security of land ownership, very stable government, and a long-standing history of being able to permit and build mines almost like no other place I've ever worked. And an interesting statistic is, if Nevada were a country, it would rank amongst the world's top 5 gold-producing nations. That's significant, especially when we see some of the issues that have been happening globally with the Russia-Ukraine conflict; we've seen mines in Russia taken away from North American companies. We've recently seen issues in Panama and also in Kyrgyzstan where a mine was confiscated. So that, I think, has never been more important with the kind of political turmoil we're seeing around the world to be in safe jurisdictions to develop mines, and never for the U.S. importance, has it been more important to see development of operations in their own country rather than looking for metals elsewhere. Nevada is currently ranked number 1 by the Fraser Institute in terms of investment attractiveness and policy perception. And we operate on brownfield sites that are either fully permitted or essentially on their way to being fully permitted for operations and we have 2 existing permitted and constructed processing facilities. Slide 11 provides an overview of our current position. We are situated in the North Central District of Nevada, which is highlighted on Slide 11 and includes the Carlin, Battle Mountain, and Getchell trends—collectively known as the most productive gold district in the world. The largest producer in this region is Nevada Gold Mines, a collaboration between Barrick and Newmont, whose operations are depicted in the image. If Nevada Gold Mines were an independent entity, it would rank as the fourth largest gold producer globally, with all production coming from this area. We have successfully built a portfolio of projects, encompassing five active project areas in the North Central District, with a total of 6.465 million ounces of measured and indicated resources, over 8 million ounces of inferred gold resources, and more than 180 million ounces of combined silver resources. Additionally, we have identified three significant polymetallic deposits at Ruby Hill, which are not yet included in our current resource estimates, as we are working to advance them to a 43-101 resource estimate for public release around mid-year. This will include the FAD, Hilltop, and Blackjack deposits, leading to a material increase in our overall resources. Our projects include the Ruby Hill flagship project in the Eureka district at the south end of the Carlin Trend, the McCoy-Cove project near Nevada Gold Mines' Phoenix operation, and the Lone Tree processing facility located along Interstate 80. North of that, adjacent to the Twin Creeks operation, is our Granite Creek project. Slide 12 highlights the locations of our two processing facilities, which provide us with a competitive edge in the mining industry. Securing permits and constructing facilities can be challenging, so having two operational and permitted processing facilities is a significant advantage. The Lone Tree facility features an autoclave, which is crucial in Nevada, as higher-grade oxidized deposits have mostly been depleted. Over the past two decades, Nevada Gold Mines' production has shifted to deeper, higher-grade sulfide mineralization, which is often refractory. Without the capability to process refractory mineralization, prospects in Nevada are limited. We are fortunate to have obtained the Lone Tree facility from Nevada Gold Mines around two years ago, and we plan to incorporate it into our growth strategy moving forward. We are also actively mining oxide mineralization at the Granite Creek operation and have negotiated a contract to sell that material, which has contributed to our reported revenue for 2023, including a record quarter for sales of our gold and oxide material in the fourth quarter. Slide 13, I'll just quickly touch on our total resources. This shows this graph shows total resources held by companies in the State of Nevada. Obviously, Nevada Gold Mines, the large producer in the state, is the largest and has the most significant resource base. We currently sit number 3 but we are expecting to see significant increases in resources over the next couple of years as we continue to drill out our deposits and we bring, more importantly, the polymetallic mineralized deposits this year into 43-101 resource. The other thing that I think really stands out in terms of our projects, as shown on Slide 14, is the grades. We don't want people to forget that we do have 3 significant open pit deposits within our portfolio that, in our opinion, represent the next stage of growth for production for the company. These deposits are not included in our near-term plans but are going to be included in our longer-term sort of our 10-year vision for the company. The Granite Creek open pit project which is an oxide pit has a grade of over 1.3 grams per ton which would make it one of the highest-grade oxide projects in the United States. That, as I said, isn't being constructed in the next couple of years in our plan but it is definitely the next project when we look at what we want to do. The underground deposits rank amongst the highest you'll find anywhere in North America; both Cove and Granite Creek have M&I grades in excess of 10 grams per ton. We haven't released the new resource yet for Ruby Deeps but based on the work we've done and some of the preliminary economic work we've completed, we are definitely expecting to see a significant increase in the grade of Ruby Deeps when we publish our next resource. Slide 15 is showing our longer-term plan. Our plan is to sequence our 2 processing facilities. At Lone Tree, we have the autoclave facility. The plan is to construct 3 underground operations or high-grade underground gold mining operations to feed that facility. We need those 3 facilities running in order to start the autoclave facility. Cove is, even though we have done the underground program, the first phase of the underground there is actually the third that we expect to come online. The timing of Cove will realize the timing of our plan to start Lone Tree. In advance of that, though, we are looking to potentially start up the Ruby Hill complex. Ruby Hill, we have completed the first phase of engineering work or the work that would be required to convert the plant you see in the lower image from a gold plant to a flotation-based metal plant. The estimate for the capital for that project was well under $100 million. So a very limited capital project to construct that or to convert that facility to meet our polymetallic needs is something we are looking at potentially fast-tracking as early as later in '24 or in 2025; more likely, it would be the start-up of the conversion of that plant. The funding of that we expect would largely come from our incoming partner once we complete all of the transactional documents that are required to instill the formal joint venture between ourselves and the third-party. Slide 16 is a view of the Lone Tree mine. At the Lone Tree mine site, we are continuing to do residual leaching on the heap leach pad, you see in the background. We are continuing to get gold ounces, as you can see in our year-end results and that is continuing into 2024 from this facility. Our central core cutting facility and assay lab, we have our own operational assay lab at this site, and we have the autoclave facility shown here. I will point out that only 2 companies in the United States have autoclaves: ourselves and Nevada Gold Mines. So that really gives us a competitive advantage. The fact, as you can see here that this site is permitted, it is constructed, there's grid power as you can see, and roads. If we were able to permit and rebuild this site, I would expect it would be multiples of our current market cap to get a facility like this. It also contains a 1.8 million ton a year flotation circuit that could be used for alternative types of deposits if we were able to either find one or secure one in the area, or if we were able to develop sufficient refractory ore, we could look at using that flotation circuit as a second crushing facility and add an autoclave vessel if we wanted to increase our refractory production coming out of this site. So there is a lot of optionality that this plant gives us to grow in the future if we continue to be successful at finding new deposits and making those large enough that we may one day consider going larger in terms of production. Granite Creek is our most developed project, and we aim to replicate this model at Ruby Hill and Cove by creating underground declines near or within existing pits or historical mining sites. These areas are already disturbed, facilitating a smoother permitting process since they are not greenfield sites. The location of the Granite Creek project is strategically important, with Twin Creeks' processing facility located to the North and the Turquoise Ridge mine, which is currently the third-largest gold-producing mine in the United States, situated directly North of our Granite Creek mine. These operations, Twin Creeks and Turquoise Ridge, contain around 40 to 50 million ounces of production reserves and resources, which classifies them as significant deposits. Our mineralization at Granite Creek aligns with the same rock types and metallurgical characteristics found in the nearby mines. A major fault structure along the East side of the intrusive complex plays a key role in controlling the gold mineralization, and our property spans about 6 kilometers of that geological trend. We have made significant progress in the past few years, especially with the South Pacific zone, which has shown promising results. The mineralization strike length has increased from about 100 meters in the upper areas of the mine to over 600 meters when examining the deeper Ogee and South Pacific zones. The deepest Northmost intercept we've drilled recorded 6.6 meters at 15.7 grams, indicating that this deposit remains open to the North. The deepest drills in our 2023 program encountered nearly 20 meters averaging over 15 grams per ton. We have also started underground delineation drilling in the South Pacific zone and initial results indicate very high-grade mineralization that surpasses our current resources. Reports from analysts indicate an average of 22 grams per ton over 7.4 meters from these intercepts, highlighting the continuity of high-grade mineralization as we refine our drilling approach. With the dewatering well we commissioned in the first quarter, we can now lower the water table to access the South Pacific zone more easily. In the lower image on the left, we point out here is hole 22-26, our Northmost hole that hit 15.7 grams, and we interpret that, that contact the upper and lower Comus geological contact will continue North up to the very Northern extent of our properties and is almost untested at these depths, all the way up to the boundary which from hole HPC 175, that's a historic home stake that intersected similar mineralization to what we're seeing in the South Pacific zone, a further 400 meters to the North. North of that, there are no drill holes into that structure all the way to the boundary, which is another mile to the North, and then immediately North of that boundary is the Turquoise Ridge operation. We see the very significant expansion potential, and again on Slide 20, what we show is the conceptual mine plan we're putting together as we do the infill drilling. We are defining what a long-term mining operation would look like here. We are inferring going at least to 28, and some of the drilling we did from surface; we drilled 12 of 28 holes that were planned during the year. That was a bit because of budget constraints. But we did do drilling to start expanding our mineralization and had a very high hit ratio of high-grade mineralization. Similar to what we saw from earlier drilling from surface, we do see some pinching and swelling, but every hole but one intersected in excess of 8 grams per ton. I believe 10 of the 12 holes intersected higher than 10 grams per ton, with intercepts up to nearly 30 grams. We also need to do some drilling around 22-18, which was drilled in 2022, where we intersected 6.4 meters of 44.4 grams, and plan to do some additional drilling there either from surface or underground to expand that and bring it into the M&I category. As you can see, around an up-dip, there are other intercepts of very high-grade mineralization that have yet to be followed up. We see the upside of this project as being very significant. Slide 21 is an introduction to Ruby Hill, one of Nevada's largest gold deposits when you combine the open pits with the underground mineralization and soon the polymetallic mineralization we're looking to bring to resource. On Slide 22, we view this property as having significant potential. It features polymetallic mineralization, including both CRD and Skarn near the historic Archimedes Pit, as well as various types of gold mineralization to the south at FAD. This includes refractory Carlin type found in Ruby Deeps, the 428, and Lower Jack deposits. We also have an oxide open pit project, which is our largest deposit, known as the mineral point. This is a disseminated oxide gold deposit that aligns with our long-term growth objectives. Additionally, we have gold sulfide in intrusive mineralization at the Tyche target to the east. What makes this project particularly remarkable is the diverse types of gold and polymetallic mineralization that coexist in close proximity, allowing us to visualize an operation that will yield both gold and base metals, with the base metal mineralization being processed on-site. Slide 23 highlights several mineralized zones. The Blackjack deposit under the pit is a zinc skarn deposit. To the south, we have discovered and are currently mapping the East Hilltop zones, which include a CRD and the Skarn zone. The Upper Hilltop zone is a partially oxidized CRD deposit we identified in 2022, while the Lower Hilltop zone has been partially mapped and is our deepest CRD deposit located along the Hilltop fault. The 428 zone is currently being tested with two drill holes, one by i-80, and it lies between Ruby Deeps and Blackjack. We plan to continue drilling this target this year to potentially add it to our resources due to its grade. Our only hole at this site followed up on a historical 15-gram intercept and yielded 12.3 grams over 10.7 meters, which is significantly higher than the resource grade of the existing Ruby Deeps deposit. The Ruby Deeps deposit has impressive true widths, reaching nearly 70 meters in some areas, and is open for expansion. In 2023, we drilled a step-out hole to the south to test the extension of Ruby Deeps, which successfully intersected 50.7 meters of 6.9 grams, including 8 grams over almost 25 meters. This indicates strong potential for further resource development in the Ruby Deeps deposit. Slide 24 emphasizes the polymetallic mineralization. The Skarn deposits include East Hilltop, positioned furthest to the East, and the Blackjack deposits. Both of these deposits are found along the intrusive, which is indicated in pink. We have tested the intrusive contact in both areas, specifically at East Hilltop and Blackjack, and confirmed the presence of Skarn mineralization. The southernmost drill hole at Blackjack revealed 19.4% zinc, nearly 20 grams of silver, and 0.5 grams of gold over 30.4 meters. There has been no drilling along the contact all the way to East Hilltop, where we have just begun to delineate that deposit in the second half of 2023. The southernmost hole drilled in that Skarn zone encountered 9.5% zinc, 0.3% copper, and over 12 grams of silver over an impressive 114 meters, indicating it is entirely open to the South. Within that hole, there was 17.7% zinc over 36.6 meters with 0.4% copper. Notably, we are observing elevated copper mineralization as we drill deeper and to the South in this zone. Future drilling will focus on investigating the theory that the zinc skarn may transition into a copper skarn at depth or along strike; we will also conduct infill drilling. The Hilltop zones, including the East Hilltop CRD and the Lower Hilltop CRD zones, are completely open for expansion. We are observing very high-grade intercepts of lead-zinc mineralization in these holes. This is CRD mineralization, indicating a mix of lead and zinc. Some of the holes we drilled to define Upper Hilltop and for final metallurgical work displayed intercepts such as in 23-54, which showed 8.8% zinc and 19% lead, along with over 8 ounces of silver per ton and 0.6 grams of gold over 32 meters. This represents extremely high-grade mineralization in deposits that are not yet part of our official resource, but we aim to upgrade them. Slide 23 is our vision for a longer-term growth plan. We are partially permitted now for the underground program, so we can start putting in the facilities or the surface facilities within the pit is now permitted, and we're just waiting for the final permit for going ahead with the deep line. That deep line will provide us access to both gold, refractory gold mineralization, and polymetallic mineralization, the Hilltop and Blackjack zones. Effectively, when we drift to the North out of the North side of the pit, essentially an identical plan is what we have at Granite Creek; when you turn left, you go to the gold deposits; when you turn right, you go to the base metal deposits. These deposits are completely open for expansion, so we do expect to add significant resources in the future. In addition to that, approximately 2 kilometers to the South, as shown on Slide 26, we now own the FAD deposit. FAD is a very high-grade polymetallic CRD deposit. We have done initial metallurgy that we show here on this slide, where we're getting very good concentrates on mineralization, with very good recoveries, very high silver with lead concentrate. This deposit is wide open as well. Hole 28 is the furthest East hole that we've drilled to date, leaving the deposit open to the East. We intersected 25 meters of nearly 4 grams gold, 185 grams silver, and combined nearly 15% lead zinc. Hole 22 is the Westernmost hole we drilled, intersecting 14.6 meters of 9 grams gold, 92 grams silver, and over 13% combined lead zinc, the bulk of that being zinc mineralization. So these deposits and the success we've had have attracted, during 2023, significant external interest. Because of market conditions and our significant growth plans, we decided to consider a partnership and chose one that we believe will be a very accretive deal for our company. The particulars of that, as I said earlier, we expect to release in the second quarter of this year. Slide 27 is the introduction to our anchor gold project, the Cove property. When you look at i-80 in Nevada, even though i-80 is less than 3 years old as a company, this project Cove was part of Premier prior to the formation of i-80. It was acquired more than a decade ago. So our assembly of projects in Nevada started approximately 12 years ago with the first acquisitions we did in the state. We didn't build this portfolio in just a couple of years; it was built over more than a decade, and Cove was a project that we successfully took from an exploration concept to being permitted to go underground. With the acquisition of the Autoclave facility, we went ahead with the first phase of underground. This program was completed in '23. So when you look at where we spent dollars in '23, a good portion of that was in completing the first phase of underground here at Cove, providing us a platform, as you see on Slide 28, to begin delineating what we believe is one of the highest-grade development stage gold projects in all of North America. The Helen and the CSD, Gap deposits have now been partially drilled from underground. The green shows the holes that have been completed and the gray lines that you see are the planned holes to continue delineation of these deposits to upgrade this deposit to as much M&I as possible for full feasibility and final permitting to go ahead. We also did a large-scale pumping test in the fourth quarter of 2023 that will go into the final dewatering strategy for this project. As you can see, the majority of our resources are inferred. So this program is designed primarily to upgrade to indicate it. Just last week, we announced the results from 2023 are still flowing in. You can see just below the image, the intercepts that we achieved in the last 3 holes that we've got assays for into this deposit as the delineation of the Helen zone continues. I'd really like to highlight the upper and main zones in each hole: the Upper Zone in these 3 holes graded between 13.8 grams per ton and 25.3 grams per ton over between 9 and 10 meters, close to true width because these are flatline zones. The main zone in these intercepts graded anywhere from 22 grams to 32.9 grams, with intercept widths of between 12.8 and nearly or just over 19 meters. So the reconciliation and the continuity of mineralization is definitely being demonstrated. The deposit remains open underneath the historic Cove pit. The underground exploration platform that you see there will position us where we continue to expand mineralization under the pit following the delineation program. That drilling is shown on Slide 29, where the Gap area we call exploration potential. There are a few drill holes that were drilled historically when this open pit deposit was being mined up until the early 2000s, which were drilled to depth and did hit similar mineralization to what we saw in the Gap zone with intercepts again, up to over 20 grams per ton. We believe that there is very significant expansion potential to this deposit due to its location underneath the pit and the water in the pit. We just haven't been able to drill that area as yet, but the underground platform will provide a great place to continue expanding mineralization. So with that, we're actually at 10:45. I'll just quickly show our ESG strategy and the summary of the company. We were supposed to be done by now because we have a few calls set up for today, but we'll take a quick call or two. As always, feel free to call the company and get any greater detail that you'd like to see. I believe we have Justin Chan on.

Yes. Your first question comes from the line of Justin Chan from SCP Finance.

I was wondering about the ore selling agreement. I backed out roughly about 5.3 grams, but I know there might be a processing fee. I'm trying to understand how to model the grade and payability for the upcoming quarters. To clarify my question, on a per ton basis, what guidance do you have for modeling that? Should we assume a grade and then payability, or could you provide guidance on a similar dollar per ton that would be helpful?

I would say that the oxide mineralization that we are mining, other than development ore, which would be more lower-grade material. But when we're stoping that mineralization, it would be at about the resource grade, as we show as our resource. It's a difficult one to answer because we sell it as whole ore, and there is a charge, obviously. So we don't get paid for 100% of the ounces under that arrangement. But with the party that we have that contract with, they would prefer us not to release who they are and what the terms of that are. But maybe Ryan or Matt Gili can give a bit better clarity on that mineralization.

I can provide some insight. As Ewan mentioned, we can't disclose the terms. However, I understand your question, Justin, and it's a valid one. Think of it this way: model the grade as the resource grade, as Ewan indicated. Additionally, consider that we are facing a recovery loss. You can also assume that the total milling charge is approximately the same as that recovery loss.

I'm curious about your tonnage this year, as you had a strong tons sold number in Q4. How do you see this year shaping up, especially regarding the first and second halves and the South Pacific zone? How do you anticipate the tonnage evolving?

I'll touch on that from the tons mined, the ounces mined standpoint and then hand over to Ryan. So we are continuing to ramp up. We have tough months and we have some quarters that are better than other quarters, but we're continuing to ramp up as we develop more phases. If we were giving you mined guidance throughout the year, you would see a very steady ramp up in production. You would see that essentially 1/3 of our production for the year came out of the fourth quarter from the mined ounces standpoint. We're continuing with that trend of ramping up. As we develop into the South Pacific, that's when you're going to see the real inflection, and that entry into the South Pacific is happening right around the middle of these. Ryan, did you have anything you want to add on regards to the way that we're doing that? Where did that big spike come in Q4?

No, Matt, I think you covered it.

Okay.

Yes. And Justin, please feel free to call Matt Gili afterwards if you have any further questions.

For sure. All right. That's a good plan. I'll clear up the line.

Okay. So I think that was our only question we have lined up. So if anybody wants additional clarity on some of the items that were presented today, please feel free to either call the Nevada or the Canadian office. And we'll be available most of the day or at least one of us should be available at all times, and we can take you through any additional detail you'd like to have on the company. Thanks everybody for attending today, and we look forward to talking to you again soon.

Thank you, presenters. And ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.