SSRM

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Transcript Summary

SSR Mining Inc. reported a strong Q1 2026, highlighted by the $1.5 billion sale of the Çöpler mine to reposition as an Americas-focused producer. The company generated $211 million in free cash flow, ending the quarter debt-free with $634 million in cash. This financial strength allowed for a $300 million share repurchase program in April. Key operational highlights include CC&V's rapid payback—generating $325 million in free cash flow since its 2025 acquisition—and Puna’s record processing throughput amid high silver prices. Marigold and Seabee remain on track, with production weighted toward the second half of the year. Management is advancing organic growth projects, including an updated life-of-mine plan for Marigold and a strategic review of Hod Maden. With the Çöpler sale expected to close in Q3, SSR Mining anticipates a pro forma cash balance exceeding $2 billion, providing significant flexibility for future M&A and shareholder returns. The company remains focused on operational efficiency, utilizing diesel hedges to manage costs while targeting high-margin production across its lower-risk North and South American jurisdictions.

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SSR Mining Inc.: The Çöpler Divestiture and the High Cost of Structural Firewalls

Full Earnings Call Transcript — Q1 • 2026-05-05

Operator: Hello, everyone, and welcome to SSR Mining Inc.'s first quarter 2026 conference call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining Inc. Please go ahead.
Alex Hunchak: Thank you, Operator, and hello, everyone. Thank you for joining today's conference call to discuss SSR Mining Inc.'s first quarter 2026 financial results. Our consolidated financial statements have been presented in accordance with U.S. GAAP. These financial statements have been filed on EDGAR and SEDAR, and they are also available on our website. There is an online webcast accompanying this call; you will find the information to access the webcast in this afternoon's news release and on our corporate website. Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated. Today's discussion will include forward-looking statements, so please read the disclosures in the relevant documents. Additionally, we refer to non-GAAP financial measures during our remarks and in the accompanying slides. See our press release for information about the comparable GAAP measures. Rodney Antal, Executive Chairman, will be joined by Michael J. Sparks, Chief Financial Officer, and William MacNevin, EVP, Operations and Sustainability, on today's call. I will now turn the line over to Rodney Antal.
Rodney Antal: Great. Thank you, Alex, and good afternoon to you all. It has been a strong and productive start to the year, and I am proud of the outstanding work delivered across the company in recent months. Most notably, in March, we announced and advanced a definitive agreement to sell our interest in the Çöpler mine for $1.5 billion in cash. This transaction is progressing well, and we expect it to close before the end of 2026. The divestment of Çöpler provides a strategic repositioning for SSR Mining Inc. as a focused Americas-based gold and silver producer with a clear emphasis on free cash flow generation. Our portfolio is now anchored by the Marigold and Cripple Creek & Victor operations, two high-quality, long-lived assets that together form the third-largest gold production platform in the United States. Both operations offer meaningful runway to future growth and mine life extensions. Operationally, it was a solid quarter with our results tracking well against our internal plans and full-year guidance. Financially, the business generated an impressive free cash flow of more than $210 million in the first quarter of the year. As a result, and following the settlement of our convertible notes in March, we finished the quarter with more than $630 million in cash and zero debt. Our substantial cash position provides us with a robust balance sheet and flexibility to continue to invest in the organic growth opportunities across the portfolio and consideration for further capital returns to shareholders in the future. On that note, we completed $300 million in share repurchases, acquiring more than 9 million shares subsequent to the quarter in April. Since 2021, we have repurchased over 29 million shares at an average price of $21 per share, underscoring our disciplined capital allocation strategy and delivering meaningful per-share value accretion to our shareholders. I am sure you will agree that after a busy and successful first quarter, we have created a very strong position for SSR Mining Inc. moving forward. We expect our low-risk, Americas-focused platform and track record of disciplined capital allocation will position SSR Mining Inc. as an attractive vehicle for investors seeking exposure to both gold and silver in the Americas. Before I move on to the next slide, I want to highlight some of the catalysts ahead for our business. First, we expect to provide an updated life-of-mine plan for Marigold in the coming 12 months, incorporating growth opportunities like Buffalo Valley as we push to optimize and extend mine life at Marigold. Next, we are continuing to advance various brownfield growth opportunities across the business, including both Puna and Seabee. William is going to speak more on these in the coming slides. Further, we anticipate providing an update on our strategic review of Hod Maden in the coming months. Lastly, as noted, we expect the Çöpler transaction to close before the end of the third quarter, which will add a further $1.5 billion in cash to our balance sheet. These catalysts in and of themselves present an opportunity to create additional value for our shareholders and will be further bolstered by the ongoing free cash flow from our Americas operations. Let us move on to Slide 4 and talk more about our track record of value creation. The figures on this slide illustrate a powerful picture of discipline and value creation. Over the past few years, we have clearly demonstrated a track record of value creation in per-share metrics, capital returns, and M&A. I have spoken to our commitment to capital returns and particularly share buybacks, but separately, we also have a clear track record of value-accretive M&A. This was most recently illustrated by the remarkable returns being generated from the acquisition of Cripple Creek & Victor in 2025. This is further supported across the portfolio where we have consistently demonstrated our ability to add value through mine life extensions and optimizations. These successes combined with a supportive gold price environment have driven a more than 300% increase in our consolidated consensus net asset value per share since 2024 and a better than 400% increase in consensus cash flow per share over the same period, a fantastic outcome that differentiates SSR Mining Inc. amongst its peers. I am going to turn it over to Michael on Slide 5 to discuss the quarterly results.
Michael J. Sparks: Thank you, Rod, and good afternoon, everyone. In the first quarter, we produced 110 thousand gold-equivalent ounces at all-in sustaining costs of $2,433 per ounce, well aligned with our expectations. As highlighted in our guidance release, we continue to expect 55% to 60% of full-year production in the second half with higher sustaining capital spend in the second and third quarters. William will speak in more depth about each operation in the coming slides, but I wanted to call out two notable milestones from the Q1 results. First, Puna delivered more than $120 million in site-level free cash flow in the quarter, an excellent result that reinforces Puna's position as one of the highest-margin primary silver mines globally. We are excited about the opportunities for meaningful mine life extensions and are advancing these programs through 2026. Second, following another strong quarter from CC&V, the operation has now generated approximately $325 million in mine site free cash flow since its acquisition in 2025. This is a phenomenal result given the $275 million acquisition cost and the long mine life ahead for the operation. Overall, it was a strong and solid start to the year operationally, and we look forward to building on this momentum through the rest of the year. Now let us move to Slide 6 for a brief review of our financial results. Our solid operational results translated into strong first quarter financials, including nearly $600 million in revenue and 113 thousand ounces of gold-equivalent sales. With the sale of our ownership in Çöpler announced in March, the asset is now classified as a discontinued operation in our financial reporting. The results from discontinued operations largely reflect a one-time non-cash adjustment to fair book value on the announcement of the sale of Çöpler. Looking at the rest of the business, net income from continuing operations in 2026 was $1.16 per diluted share, while adjusted net income per diluted share was $1.15. Free cash flow from continuing operations in the quarter was $211 million. This strong free cash flow increased our cash position to $634 million at the end of Q1, inclusive of the $87.5 million contingent payment made to Newmont during the quarter as part of the CC&V transaction. Also during the quarter, we fully redeemed our outstanding convertible notes, leaving the balance sheet debt free as of March, and with total liquidity of $1.1 billion. As Rod mentioned, subsequent to quarter end, we completed $300 million of share repurchases under our buyback program, reflecting our continued commitment to shareholder returns. Looking ahead, we expect our ongoing free cash flow combined with proceeds from the sale of Çöpler before the end of 2026 will further strengthen the balance sheet and enhance our ability to continue to allocate capital with discipline while prioritizing high-return growth opportunities and long-term value creation. Before turning the call over to William, I will briefly touch on global cost pressures with a focus on fuel. At Marigold and CC&V, nearly 70% of our diesel exposure is currently mitigated through zero-cost collars executed in late 2025, which extend through 2026. At Seabee, diesel is secured through annual winter road deliveries, and at Puna we are not currently seeing meaningful impacts given domestic supply conditions. As a guide for the remainder of 2026, for every $10 per barrel increase in oil prices, it translates to approximately a $7 to $10 per ounce increase in our consolidated AISC. We will continue to monitor fuel markets closely as we maintain a disciplined focus on cost control and operational efficiency across the portfolio. Now over to William on Slide 7.
William MacNevin: Thanks, Michael. I will first start with EHSS. Getting our people home safe and healthy each and every day is foundational for our business. This is highlighted in one of SSR Mining Inc.'s three core values, being safety first, always. This year, as part of our ongoing improvement focus, we are commencing implementation of I Care We Care across SSR Mining Inc. This is a safety leadership and culture program prioritizing people and how we each own and take responsibility for ourselves, our workplace, and our teams. I am very encouraged by the energy and input coming through from this early work and look forward to this making a difference in both people's safety and overall business performance. Now on to Slide 8 to start with Marigold. Marigold had a solid start to the year with production results well aligned with expectations. We continue to expect full-year production at Marigold will be 55% to 60% weighted to the second half of the year, driven largely by higher grade stacked midyear. AISC at Marigold are expected to peak in 2026, driven by timing of spend on fleet replacements and upgrades. Full year remains on track against the original guidance range. We are seeing cost pressures stemming largely from higher royalty costs driven by gold prices. Nearly three-quarters of our diesel fuel usage at Marigold and CC&V is hedged for this year, which has helped to insulate us against the current elevated fuel prices globally. Our focus remains on equipment productivities, maintenance quality, and efficiency with consumables to manage current and potential future inflationary pressures. Work continues on growth initiatives across Marigold, particularly at Buffalo Valley, as we work to include the project into an updated life-of-mine plan at Marigold within the next 12 months. We have also had some great results from near-mine drilling across the property, including some high-grade intercepts at DG-80 targets to the southwest of the current Mackay Pit. Our teams are also continuing to evaluate longer-term open pit expansions at New Millennium. These initiatives combined with additional near-mine drilling campaigns and project evaluation work point to significant potential for mine life extensions at Marigold in the future. We are excited by what is ahead and look forward to providing more details in the new technical report. Now on to Slide 9 for an update on CC&V. CC&V had another great quarter with better than expected recoveries driving strong production and delivering more than $120 million in mine site free cash flow. Since acquisition at the end of last February, CC&V has now generated $325 million in free cash flow, an excellent result that now exceeds the total transaction consideration in just 12 months. CC&V remains well on track against its full-year production and cost guidance targets, with higher sustaining capital expected in the second and third quarters. We are continuing to evaluate opportunities to improve the longer-term production and cost profile of CC&V through trade-off studies and potential for future mineral reserve conversion. CC&V has an exciting future ahead, and we look forward to continuing to deliver value at that operation going forward. Now on to Slide 10 to discuss operations at Seabee. First quarter at Seabee saw our continued focus on underground development as we aim to deliver stronger grades and production in the second half of the year. Production was also impacted by extreme cold in the quarter, which caused some temporary downtime in the processing plant. AISC reflected costs incurred with the winter road season, and overall, Seabee remains on track for its full-year guidance ranges. Exploration and resource development activities at both Santoy and Porky continued in the quarter, with both programs targeting potential mineral reserve growth. At Santoy, near-mine drilling is focused on higher grades at depth, while our teams continue to evaluate Porky as a potential new mining front to support future mine life extension. Now on Puna on Slide 11. Puna continued its recent run of excellent operating results with a strong first quarter. Average daily processing plant throughput set another record, the fifth consecutive quarter Puna has delivered improvements in process plant efficiency. As planned, mining was focused on waste stripping in the quarter, and Puna remains well on track for full-year production and cost guidance. Average realized silver prices in 2026 exceeded $90 per ounce, enabling Puna to deliver more than $120 million in mine site free cash flow in Q1. Puna has been an excellent contributor to the business over the last few years and continues to clearly demonstrate its exceptional margins and free cash flow in the current silver price environment. We are advancing a number of opportunities to extend the current life at Puna, including additional laybacks at the existing Chinchillas pit, evaluation of the Malena target adjacent to Chinchillas for open pit potential in the medium term, and continued advancement of the Cortaderas underground project. With multiple avenues for growth at Puna, we are very excited for the future of this operation and see potential to meaningfully extend the mine life well beyond our current reserve base. On to growth on Slide 12. I have touched on the majority of these projects and targets as we worked through each asset, but it is still worth highlighting the wealth of potentially meaningful growth opportunities that currently exist across our portfolio. These projects have been identified through successful exploration and development work completed at each asset in recent years. In my view, there is no better way to serve value for our shareholders than through the advancement of organic growth opportunities. It is also important to note these projects are compelling at current mineral reserve prices of $1,700 per ounce of gold and $20.50 per ounce of silver. We do certainly see future upside at each of these assets, but we will be diligent in ensuring we advance the highest-returning growth opportunities. I am excited about the growth potential of this portfolio and look forward to executing on these opportunities to deliver value for our shareholders. I will turn back to Rod for closing remarks.
Rodney Antal: Great. Thanks, everyone. With such an important and transformational quarter behind us, our focus is now on building on this momentum during the remainder of the year. We are in an excellent position and have a number of meaningful catalysts ahead of us as I mentioned in the introduction to this call. With a low-risk, Americas-based business, continued delivery of strong operating results, organic growth initiatives, and the potential for further capital returns, we are well positioned to benefit from the ongoing re-rate of SSR Mining Inc. So with that, I am going to turn the call over to the Operator for any questions. Thank you.
Operator: We will now open the call for questions. Thank you, Mr. Antal. We will now begin the question and answer session. Our first question is from George Eadie with UBS. Please go ahead.
George Eadie: Yes, good evening, team, and thanks for the call and nice update today. On the Hod Maden strategic review, can you just remind me what are the goals and what does it look like? I guess my question is if a sale is concluded as the outcome, do we have to wait another two or so quarters for that process to run and then another couple of quarters to close? And I guess, could we be 12 months away from that deal closing if a sale is the decided outcome?
Rodney Antal: Yes, hi, George. No. We have not really given much guidance on the process that we are going through other than to obviously announce, with the sale of Çöpler back in March. I think the objective of the review was to consider all of the options from actually building the project all the way through to sale. And then within sale or other strategic options to remove ourselves from Hod Maden and what does that mean, because there are multiple ways that can be achieved. Other than we are still in the process of doing that and going through those different trade-offs, there is really not much else to update you on, and I think some of the details that you are looking for here will come once we set a clearer picture for the direction.
George Eadie: Okay. Yep, that is cool. Thank you. And then just two payment questions. Can you remind me what the Carlton Tunnel payment is at CC&V? And then secondly, just with the buyback, $300 million bought back 9.2 million shares. That says $32.6 a share average, but the shares were only really in that range for about five days in April. Is that right, or am I missing anything there, or you just bought at that little peak in early April?
Michael J. Sparks: Yeah, George, I will take the second one first and then circle back to the Carlton Tunnel. With the share buyback program that we announced in the middle of the quarter, we did put an NCIB in place which allows us to give directions to the banks to exercise that outside of us having material information. That process did move very quickly in a range anywhere from $21 up to $32, but with the volatility of the price during that period, it did come in around that $32 a share average. Circling back to Carlton Tunnel, the $87.5 million that we paid to Newmont during the quarter was for the Carlton Tunnel milestone, and that leaves one more $87.5 million additional payment which would come in connection with the Amendment 14 and the updated closure plan to that site as we look at that deal structure.
George Eadie: Okay. Yep, awesome. And so if Amendment 14 closes, say, in some months, whenever it is, that payment is straight after you get that approval. Is that right?
Michael J. Sparks: Yes, that is right. Amendment 14 remains on track, anywhere from 12 to 18 months is kind of what we are penciling in, and then that payment will be due once that work is completed and that permit is issued.
Rodney Antal: I will just chime in here a little bit, George. It is all going to plan, and we are leading that work now. William and the team have taken that over, and the work that we have done to establish our presence with the community in Colorado and also locally down at Cripple Creek has gone really well. So that is all tracking to plan.
Analyst: Thank you, Operator, and good evening, Rod and team. Thank you for today’s update. Could I ask about the buyback and just thinking about your situation today, the balance sheet is very strong, the outlook for free cash flow generation is quite robust. You mentioned an intention to look at the buyback again, and now the buyback authorization is totally exhausted. Why not go to the board prior, along with the results, and ask for the renewal then? And what is your thinking on timing around a renewal?
Rodney Antal: I think it is important to take a step back to take a step forward. The share buyback that we just executed, particularly on the announcement of the Çöpler sale, made a lot of sense to do, and it was executed very quickly given the parameters that we had put in place. The step back that I am talking about now is that post the incident where we suspended our capital allocation strategy with Çöpler a few years ago, we said once we have clarity on the outcome post that, we would then go back and have a look at our capital allocation and reimplementing and reinstituting it. That is what we are doing at the moment. The work around more holistically how do we manage our capital allocation, and then looking at the requirements for the business in the future with all the various growth opportunities we have in front of us, the balance sheet, and other things before we go and make our mind up on the mechanisms we use for returns to shareholders. That work is underway with Michael and the team.
Analyst: So part of it is just a discussion between whether it is going to be increased dividend or increased buyback, rather than just whether you are going to do it?
Rodney Antal: I would not say increase because we have not got a dividend in place at the moment because we suspended it, and that is the point. It is a question of whether we reinstitute our yields that we had in place before. We actually had that way back in 2021, as well as supplementing that through the share buyback program. That was how we had managed it before with the three pillars: balance sheet strength, growth, and returns. It is really just pulling all that work together with the emerging growth opportunities we have as well to ensure that we are making sound decisions.
Analyst: Fully acknowledging those growth opportunities, I think it would be interesting to hear your views on M&A, particularly in light of your strong free cash flow and balance sheet position. That must compete with options within the portfolio, I assume. What is SSR Mining Inc.'s appetite right now for growth through M&A?
Rodney Antal: If you go back to the start of the call, the reason we go to the pains of setting out our track record around M&A is to highlight we have been really good stewards of capital for a long time. We look at a lot of opportunities; we have never made a secret of the fact that we are active, always looking at different trade-offs and different opportunities around the market. When we do bring deals to the table and to our shareholders, there is usually a multiple of upside, and the results speak for themselves. That is part of who we are, and I think we are particularly good at it. We have a number of filters that we look at for M&A through any cycle. It has to align to our business strategy. It has to compete for capital. It has to make sense for us in terms of what we want to build. We have a particular focus now, with the reset of the business, on the Americas. That is a bit of a nuance to what we had before, but beyond that, we are staying active in that space.
Operator: The next question is from Josh Wolfson with RBC. Please go ahead.
Josh Wolfson: Thank you very much. Following up on the question about the buyback and capital allocation, I can appreciate the company’s desire to be measured here, but with pro forma net cash over $2 billion and $200 million generated in free cash flow this quarter, why not continue a little bit of the buyback in the interim before closing of Çöpler? Or is there another way that we should be thinking about this in terms of maybe capital needs being higher for some of the development projects? Thank you.
Rodney Antal: Hi, Josh. Look, I think it is pretty simple. First things first, we want to close the deal and get the cash into the bank. That is really important through any transaction, and, as we said, we expect to achieve that within the third quarter. That is the most important catalyst. It does not mean we cannot do more share buybacks, but as we noodle through the various options and have the discussions with the board, the work that Michael and the team are doing really needs to be as holistic and predictable as possible. It is not because we have an aversion to doing any more share buybacks. It is really around just getting the deal closed, getting the cash in the bank, and then the rest will come.
Josh Wolfson: Thank you. And then on Hod Maden, you had signaled minimal costs. You did spend $31 million in the first quarter. How should we think about what minimal costs are going forward?
Michael J. Sparks: Yeah, Josh. A lot of the work under Hod Maden right now is around early site works. That is where you are seeing the majority of that $31 million coming in. A lot of that was advanced during the first part of Q1. We anticipate that as we go through the strategic review in the coming months that will be much lower. It will not be zero, but it will be towards the lower end of that range.
Josh Wolfson: Got it. Thank you. And then there was some commentary earlier on the call about fuel price sensitivity, thinking of $7 to $10. Just clarifying, what does that number incorporate? Does it reflect the hedging program that is in place, and does that include secondary impacts that may not be just direct fuel usage?
Michael J. Sparks: You bet. The hedge program goes through the end of this year, so that $10 per $10 oil move in AISC is really tied to this year with the hedge programs in place. Without the hedge programs, if we do not have anything in place going into 2027, that goes up to about double that, which is $20. Only about 10% of our operating costs are fuel. As William mentioned, we are focused on operational efficiency and controlling those costs. It is a bit early to look at the knock-on effects; we are monitoring it, but we are not seeing anything that is tangible at this point. We will continue to update as the year progresses.
Operator: The next question is from Ovais Habib with Scotiabank. Please go ahead.
Ovais Habib: Hi, Rod and SSR team. Congrats on a Q1 beat. Great to see CC&V outperforming. The amount of free cash flow this operation is generating is really impressive. Just a couple of questions from me. Sticking with CC&V, just a follow-up question regarding the Carlton Tunnel payment. Is there a positive read-through on the fact that you made this payment in terms of Amendment 14 permitting, and is that coming imminently?
Rodney Antal: No. They are mutually exclusive. Think of it the other way. Amendment 14, as you recall, we put out the technical report for Cripple Creek as the first update from SSR Mining Inc. It was constrained around the already-in-process Amendment 14, which is an expansion permit that Newmont had already begun when we acquired the asset. The Carlton Tunnel discussions and considerations were another unique piece of work going on with the regulators around the long-term management of the water discharge. So it is entirely separate from Amendment 14.
Ovais Habib: Got it, thanks for the color on that. Moving on to the mine plan expected at Marigold that includes Buffalo Valley, are you expecting any significant improvement in the production profile, or are you looking more at an increase in mine life? Any color on that?
Rodney Antal: The first priority is to include some of the growth options we have to understand the requirements for those growth options—permitting requirements, where we might need more infrastructure, where we might need to develop a new area, where we might need to do more technical work—to ensure we are in good shape for that growth profile. Some of those growth options will feature later in the life of Marigold, not so much initially, because of permitting and other requirements. Some of it is to do trade-offs across various parts of the property—southern part around New Millennium and Buffalo Valley, and some of the extensions there—to see whether we could share infrastructure rather than having long haulage. There are optimization opportunities as we go through the mine plans. In the initial years, the key focus is to show and demonstrate that we have production that now accounts for the blending requirements we talked about last year. The importance is having different faces open to allow for blending requirements of the final ore on the heap leach pad. The next five years, as we said at the end of last year, will probably stay about the same overall, but then the growth options beyond that can bring in ounces where we can along the way and extend the life of mine at Marigold, which has a substantial amount of resources.
Operator: The next question is from Cosmos Chiu with CIBC. Please go ahead.
Cosmos Chiu: Hey, thanks, Rod and team. My question is on the contingent payment related to the Carlton Tunnel—$87.5 million. If I go back to your original agreement, it was due when there is regulatory relief relating to flow-related permitting requirements, achieving highest feasible allocation, or an alternative to water flow. I guess you have achieved that point. Could you explain what that means and where we are today in terms of that water flow?
Rodney Antal: This remains a Newmont-led piece of work. They did achieve some of the permitting requirements from the regulators in Colorado that necessitated us paying that $87.5 million milestone. In layman’s terms, they achieved what they set out to achieve. There is ongoing dialogue by Newmont with the regulators to consider the overall requirements for what is going to be the ultimate plan for the Carlton Tunnel discharge—whether it needs intervention through some sort of water treatment facility in the long term, etc. Remember, the way that we carved that out through the deal was that it would always be on Newmont’s account. It is important that they take the lead on that and continue that dialogue. We are a stakeholder, but not a stakeholder who is leading the discussions on this.
Cosmos Chiu: Maybe a question on Çöpler. As you had mentioned in your guidance, there was about $80 million to $100 million in care and maintenance costs budgeted for the full year. If I take the difference of your free cash flow in Q1—$210 million—and $175 million, the difference is about $35.6 million. Is that related to care and maintenance for the quarter, which seems a bit high because you had guided to about $20 million to $25 million? What should we expect in Q2, and when would it stop? Would it stop only when you close the deal?
Michael J. Sparks: Yes, Cosmos, a couple of points on that. In Q1, you will remember there are a number of tax and license renewals, so our Q1 costs—care, maintenance, and otherwise—are always a little bit higher. The original guidance of $20 million to $25 million would be what I would use for Q2. We will maintain that care and maintenance and ongoing support through the closing of the transaction. For your modeling, use that $20 million to $25 million rough estimate, and that would continue until we announce the close of the deal.
Cosmos Chiu: What else needs to be completed for closing of the deal? The due diligence period has been completed, so what else needs to happen in terms of closing?
Rodney Antal: The work on the ground has been excellent, with discussions around the transition requirements with Cengiz Holdings. All of the cooperation you would expect through a transaction like this has been very good. The only things required, as we set out with the announcement, are regulatory approvals. We await those, particularly from the Ministry of Mining and Energy, and once they are achieved, we can close the deal. We expect that by Q3.
Operator: The next question is from Don DeMarco with National Bank. Please go ahead.
Don DeMarco: Hi, good evening, Rod and team. Thanks for taking my questions. First on Seabee, I heard that guidance is on track. Can you provide any incremental color on the costs in Q1 beyond what you already mentioned about the cold weather? Should we model a step-change to lower costs in Q2?
Rodney Antal: Look, the feature here is development. At the end of last year and into the first half of this year, the real focus at Seabee is on development, which is ongoing and will continue through this quarter as well. We will start to see incrementally better production coming out of Seabee, but it is really fourth-quarter heavy in terms of production. That flows from the development work we began in the second half of last year and continued in the first half of this year. It will progressively get better, but the big quarter will be Q4 this year. The all-in sustaining costs will average themselves out over the year as we get ounces back into the guidance range. We are still incurring costs while doing development, but ounce production is much lower in Q1–Q2, moving up into Q3, and then a great Q4.
Don DeMarco: In other words, Q1–Q2 might be above the top end of the guidance range for AISC, and Q3–Q4 could be below the lower end. Is that fair to say?
Michael J. Sparks: Yes, I think that is right, Don. Just remember, a good chunk of our costs for Seabee come across on that ice road, so Q1 is always going to be a little higher for us. As we increase production throughout the year and get out of the Q1/early Q2 ice road spend, that will normalize.
Don DeMarco: On Hod Maden, looking forward to your update on the strategic review. Can you remind us what your book value is for this asset?
Michael J. Sparks: I do not have it on the top of my head, Don. We will get that for you and follow up.
Don DeMarco: Finally, on M&A, you had mentioned the Americas. Do you have a bias in terms of stage or jurisdiction? Given your cash balance, would you favor development projects? And with the Americas, does that imply North and South America, and do you equally weight all the jurisdictions?
Rodney Antal: We look at the full life cycle of assets—everything from greenfields opportunities, which we quietly acquire over time, particularly around our current assets, through brownfields development and producing assets. We do not have a strong preference across the spectrum. The most important thing is strategic fit—does it align with our long-term vision of building from the platforms we have—and the value we can add. Each opportunity is unique. We have a reputation as good discoverers, mine builders, and operators, so there really is not anything we would not look at. It is more about whether it is on strategy. Do I have a bias from North to South America? Right now our focus is North America, to continue to build out the lower-risk ounce base we now enjoy with Marigold, Cripple Creek & Victor, and Seabee. That would be a preference, not forgetting that we have a platform in Argentina and, more recently, we have seen a much better environment there for foreign investors. That is another thing we will keep looking at, given it is fairly under-explored and we already have a presence there. Our focus at the moment is really North America and then trying to build around the platform we have in Argentina.
Operator: This concludes the question and answer session and today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.