Topic: Sulfur pricing, payability, and input cost management
Key points:
Sulfur price rose from ~$150 (PEA) to ~$700 currently; gold/silver prices also increased significantly.
PEA payability was 73%; revised offer to 75%, with potential for material improvement (above 75%).
Fuel prices in Morocco increased ~$0.30 by law; main consumables are fuel, zinc, and cyanide; significant cyanide and zinc stockpiled on site.
Plant runs on grid electricity (solar/wind), not fuel, reducing fuel risk exposure.
Mgmt stance: Neutral — sulfur payability upside is promising but not yet in base case; fuel cost increases are manageable due to low consumption and stockpiles.
Q2 — Justin Chan (continued)
Topic: Q1 2025 mining performance (open pit and underground)
Key points:
Q1 started well; open pit mining rate increased, stockpile continued to grow.
Mining strategy shifted to "super pit" focusing on ounce recovery, especially silver.
Head grade stable vs. last year; strip ratio slowly decreasing; throughput stabilizing.
Several projects underway to sustain and increase plant throughput, reflected in guidance.
Mgmt stance: Bullish — operational momentum continues with stable grade, improving strip ratio, and focus on silver recovery.
Q3 — Don DeMarco
Topic: Boumadine acceleration, debt strategy, and M&A
Key points:
No need for debt financing (assuming silver price holds or increases) eliminates 6–9 months of lender review; construction can start immediately after feasibility study.
Water strategy: building pipelines for gray water and using an aquifer; power from grid via national utility — both started without waiting for financing.
EBRD debt (4-year repayment) viewed as funding for Boumadine; company has flexibility to pay down early but keeps it while monitoring silver price and cash flow.
M&A: disciplined, focused on Morocco only; small transactions for cash/payments over time; expects a deal in 2026; no interest outside Morocco.
Mgmt stance: Bullish — self-funded Boumadine acceleration is a major advantage; disciplined M&A approach with clear jurisdictional focus.