IAMGOLD Corporation (IMG) Earnings Call Transcript

Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD Third Quarter 2026 Operating and Financial Results Conference Call and Webcast. [Operator Instructions]. The conference is being recorded. [Operator Instructions]. At this time, I would like to turn the conference over to Graeme Jennings, Vice President, Business Development and Investor Relations for IAMGOLD. Please go ahead, Mr. Jennings.

Thank you, operator, and welcome, everyone, to our conference call this morning. Joining us on the call are Renaud Adams, President and Chief Executive Officer; Marthinus Theunissen, Chief Financial Officer; Bruno Lemelin, Chief Operating Officer; Ankit Shah, Chief Strategy Officer; and Annie Torkia Lagace, Chief Legal Officer. We are calling today for IAMGOLD's Toronto office, which is located on Treaty 13 territory on the traditional lands of many nations, including the Mississaugas of the Credit, Anishinaabe, Chippewa, Haudenosaunee, and Wendat peoples. At IAMGOLD, we believe respecting and upholding indigenous rights is founded upon relationships that foster trust, transparency and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures included in the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading non-GAAP financial measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and technical information. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams.

Thank you, Graham, and good morning, everyone. Thank you for joining us today. The third quarter was another safe and steady quarter for IAMGOLD. We produced 186,900 attributable ounces, bringing year-to-date production to 558,600 ounces. We are on track to meet full year guidance and expect the fourth quarter to be our strongest led by Côté. A year ago, IAMGOLD carried more than $800 million of net debt. Today, we are in a net cash position with more than $1.6 billion of liquidity. Over the last 12 months, we've generated $2.4 billion of adjusted EBITDA and since launching our buyback program last December, we have repurchased over 32 million shares or nearly $600 million. Yesterday, we notified [ Franco Nevada ] that we have exercising are right to repurchase half of its gross margin royalty on Côté approximately $525 million. IAMGOLD will fund the full amount and keep the full benefit lowering cost Côté's gas costs, including royalties, by roughly $150 an ounce starting in 2027. Put simply, we are using our balance sheet to retain more value of our largest, longest life Canadian asset. Operationally, the third quarter was a turning point at Côté. Its first full quarter with our [ attractive ] crushing. In September, the plant averaged 37,100 tonnes per day above nameplate, and processing costs fell to $15.36 per day per tonne. September showed what the operation can deliver, and we expect a strong finish to the year. Meanwhile, this account remains the engine behind our buyback and Westwood is tracking toward the upper end of its guidance. Looking ahead, every asset has a meaningful catalyst through 2027. It started this quarter with the updated Côté mine plan, which will come by Côté and [ Goslin ] for the first time, followed by studies across Essakane, Nelligan and Westwood through 2027. This is where IAMGOLD stands today with a strong balance sheet, significant capital return to shareholders and a portfolio of long-life Canadian-focused assets with real growth ahead. With that, let's get into the quarter. Starting with health and safety. Our total recordable injury frequency rate is tracking at 0.57 for the year with no significant environmental incidents reported. Our health and safety and environment teams continue to redefine what responsible mining is today, and I thank them for their commitment to each other and our community. On production, we have produced nearly 559,000 ounces attributable year-to-date. We need about 151,000 attributable ounces in the fourth quarter to reach the low end of our consolidated guidance, well below what we produced in each of the first 3 quarters of the year. On costs, year-to-date cash costs, including royalties, are $1,251 per ounce and all-in sustaining costs, including royalties, are $1,821 per ounce. We expect both to finish in the upper range of the annual guidance. Both Côté and Essakane carries royalties that are directly linked to the gold price. With our realized gold price year-to-date averaging more than $500 above our 4,000 guidance assumption, royalties as a range, $370 per ounce this year or $45 per ounce above guidance. On input, we saw inflation of about 3% on certain commodities input in the first 9 months within our expectations. Labor rates and retention continue to be a significant priority for IAMGOLD, particularly in Canada. On energy, as noted here, a $10 per barrel most in oil represents about $12 per ounce on a consolidated costs, including indirect inflation equating to an approximate $25 per ounce cost increase above our guidance. With that, I will pass the call over to our CFO, to walk us through our financial results. Marthinus?

Thank you, Renaud, and good morning, everyone. Strong operating results and supportive gold price environment again translated in significant cash flow. Mine-site free cash flow was $404.3 million in the quarter, bringing year-to-date minted free cash flow to $1.3 billion. Operating cash flow before working capital and taxes for the first 9 months was $1.7 billion. Working capital adjustments included $65.3 million of VAT refunds that is again received this year. The operating cash flow funded capital expenditures of $320.3 million, $542.6 million of share repurchases, the net repayment of $200 million on our credit facility, $34 million paid to the government of [indiscernible] for each portion of the [ Secant ] dividend and $27 million of revolving taxes on our gold portion of the dividend. The net result is an increase in our cash balance of $344.7 million since the start of the year. In August, we also completed the sale of our 35% interest in the [ Bank Baji ] joint venture in Senegal for $69.7 million or $48 million net of taxes and transaction costs. As a result, at September 30, IAMGOLD at $766.6 million in cash and cash equivalents with our $850 million credit facility undrawn for total liquidity of approximately $1.6 billion. Our only remaining debt is the $450 million of senior notes due October 2028, redeemable at [indiscernible] since October 15. We will continue to evaluate the most efficient use of our balance sheet with respect to the lines. Of our cash at quarter end, $321 million [indiscernible]. Cash is account both up between distributions and after quarter end, a further $135.8 million was repatriated to Canada. Turning to our financial results. Revenues for the third quarter was $856.5 million from sales of 19,900 ounces at an average fuelize gold price of 4,277 per ounce, slightly above the market price of $4.263 per ounce for the quarter. Adjusted EBITDA in the third quarter was $503.9 million. Adjusted net earnings attributable to equity holders were $237 million or $0.42 per share compared with $17.9 million or $0.30 per share in the prior period. Earnings were primarily adjusted for the gain on sale of the [ Bombardier ] assets. Incurred capital expenditures were $19.7 million in the third quarter and $329.4 million year-to-date. Our full year total capital expenditure guidance of $500 million plus or minus 5% is unchanged, which implies a step-up in spending in the fourth quarter. Within that total, we have reduced sustaining capital at Côté Cote $230 million on an attributable basis from $160 million due to the reprioritization of resources and the forest projects of 2027. This is an offset by increases in staining capital is [ accounting ] to $105 million from $165 million due to the change in the mining sequence that resulted in additional capitalized waste stripping. Turning to capital returns. During the third quarter, we repurchased and canceled approximately 7.6 million shares to $134.7 million at an average price of $17.58 per share. Since the program began in December '25, we have repurchased 32.1 million shares for $592.6 million at an average price of $18.47 per share. Our current normal course issuer bid runs to December 11, 2026. And subsequent to quarter end, our Board authorized the company to seek [ T6 ] approval for a new normal course issuer bid for further 12 months for up to approximately 10% of our outstanding shares. The buyback continues to be funded by cash repatriated from Essakane. In June, [indiscernible] a dividend of approximately $500 million from its 2025 earnings. IAMGOLD's portion, net of the government share and folding taxes is approximately $400 million. Of this amount, we have received a total of approximately $225 million since June, with the balance expected to be distributed through the rest of '26 and early 2027, as Essakane generates cash in excess of its working capital needs. Under [indiscernible] about our royalty, as Renaud mentioned, we have delivered an irrevocable notice to repurchase 50% of the [ Franco-Nevada ] 7.5% gross margin royalty on Côté. [ Sumitomo ] elected not to participate. So Iron Gold will fund the full price of approximately $525 million from available liquidity and retain the full economic benefit reducing our effective gross margin royalty from 7.5% to 2.14%. We expect the transaction to close in December with economic effect from January 1, 2027. This is an important transaction as it allows us a greater share of the cash flow from our largest asset. This is squarely within our capital allocation framework. Cash flows from our Canadian operations, fund our Canadian growth at Côté, Westwood and Nelligan, as well as the tanker royalty repurchase through further strengthening of the balance sheet and a possible introduction of a dividend, which we are contemplating initiating in 2027. Gas from Essakane continues to fund the share be an approach we continue to evaluate for 2027. And with that, I will pass the call to Bruno Lemelin, our Chief Operating Officer, to discuss our operating results and outlook. Bruno?

Thank you, Maarten. Starting with Côté Gold. Côté produced 92,000 ounces on a 100% basis in the third quarter or 64,400 ounces to our account. This brings production for the year to 262,900 ounces on a 100% basis. On the mining side, we moved a quarterly record of 12.4 million tonnes of total material. This included 3.8 million tonnes of ore at a strip ratio of 2.3:1. Gray mine was 0.93 grams per tonne, in line with the mine plan as we continue to open up the pit through the pushback. We expect good mining rates in the fourth quarter as the fleet that supported the contractor crusher is back in the pit. The pioneering on the pushback is mostly complete and 3 new our trucks come into service. In the plant, we mailed 2.9 million tonnes, which averaged below nameplate for the quarter due to the extended annual shutdown in August and the planned first quarter running on owner-only crushing. By September, the improvement was clear. The plant averaged 37,100 tonnes per day or 1.1 million tons in the month, above mainly of 36,000 tonnes per day, with record crusher in HPGR throughput. Net grades in the quarter averaged 1.1 grams per tonne with recoveries of 90%. Recoveries were lower than in prior quarters due to downtime on one of our 2 verticals early in the quarter. With both items both in operations, recoveries have improved. And we continue to optimize grind size through the circuit reconciliation of the reserve model to mill feed and production continues to be excellent. Looking at the fourth quarter, we expect the plan to average nameplate of about 36,000 tonnes per day with higher grades as mining moves into higher grade zones of the mine plan. With that, we expect Côté to finish at the lower end of its guidance range of 390,000 to 440,000 ounces on a 100% basis. Turning to costs. Cote reported third quarter cash costs, excluding royalties of $1,243 per ounce, cash costs of $1,544 per ounce non-insustained cost of $2,056 per ounce. In dollar terms, production costs were down 5% from last year as we began to see the benefit of owner-only crushing. On a unit basis, mining costs were $4.77 per ton, which remained above target due to contractor support for pioneering work on the dip pushback plus our exclusive costs and [indiscernible] prices. We expect mining costs to decline in the fourth quarter on higher volumes and as pushback related activities went down. Milling costs were $18.92 per ton for the quarter, down from $20.85 in the second quarter. The best data point is September, in which mining averaged $15.36 per ton. Our targets are unchanged. We plan to exit 2026 at about $4 per ton for mining and about $15 per ton for milling. For the full year, we now expect cash costs, excluding royalties of [indiscernible] to be above the top end of our guiding range of $900 to $1,050 per ounce and all-in sustaining costs, excluding royalties at the top end of the $14.75 to $1,625 range. We expect fourth quarter costs to be lower with more ounces, more tonnes and better unit costs. Royalties at Côté were $301 per ounce in the quarter or 19% of cash costs. With the repurchase of half of the Franco Nevada royalty, this will reduce the royalty impact on cash costs by approximately $150 per ounce. Now that to what comes next to Côté. We remain on track to release the updated Côté mine plan and mineral reserve estimates this quarter, followed by the technical report shortly after. For the first time, this plan will bring Côté and [ Gasline ] together into a single bit and one mine plan. With the consol data, we expect the plan to show an increase in reserves and mine life. It will also set out a near-term path to take the plant from 36,000 tonnes per day to 40,000 tonnes per day. This comes from debottlenecking and targeted improvements to the existing plant. The second comp pressure is already in place and work has started on the third [indiscernible], which we expect to install early in 2027. The remaining elements include improvement to the repeat systems additional final dam capacity and likely additional [ leach ] tax. In parallel, we are continuing trade-off studies on a larger expansion. Given the size of the combined Côté and Gazlay resource, we see meaningful long-term potential and our focus is on determining the right scale and the right path to unlock it. The Phase 2 pushback underway today also give us more flexibility in the pit as we evaluate those options. Turning to Westwood. Domain produced 28,500 ounces in the third quarter and 97,100 ounces year-to-date. We now expect Westwood to finish at the upper end of its guiding range of 110,000 to 130,000 ounces. Underground, we mined 99,000 tonnes of ore at 8.9 grams per tonne, tons or 10% higher than the prior year period on favorable stop sequencing and improved mining recovery and grade benefited from sequencing and lower dilution. The mill processed 309,000 tons at a blended grade of 3.0 grams per tonne with recoveries of 94%. Most importantly, Westwood generated $51.7 million of mine site free cash flow in the quarter and $218.2 million year-to-date. I also want to expand on the gold-bearing log type material, our mill team identified at the bottom of the [ pregnant ] solution tank during a review of the electro-winning circuit. The material is believed to have accumulated over a number of years. It has been recovered and placed in drums with a total combined weight of 14,700 kilograms. Samples and stated solid content of 19% to 27% and gold content in the saves of 6% to 7%. For illustrative purposes only, using the average of those ranges, the material could contain approximately 30,000 answers of growth. I want to be very clear. This is not an estimate of a recoverable or payable goal of production or of the financial benefit. We do not have a representative sample of the material. The illustration is subject to significant uncertainty and it should not be regarded as a reliable estimate and the actual goal recovered may differ material. The material will be processed by an external refinery and subject to completion of refining in assay, we expect the gold recovery to be reflected in our fourth quarter production results, although there can be no assurance as to the quantity or timing. [ Penygold ] recovered from this material is not included in our 2026 guidance. Turning to costs. Cash costs at Westwood were $1,794 per ounce in the quarter and all-in sustaining costs were $2.118 per ounce. Year-to-date cash costs are $1,529 per ounce and all-in sustaining costs are $1,980 per ounce, both within our guidance ranges. Costs per ounce were higher this quarter compared with the first half of the year, reflecting fewer ounces sold and more drilling in store preparation on the ground with underground mining cost of $322 per ton. Looking ahead, we have invested $12 million of expansion capital so far this year on development into the eastern zone of the mine to support the study of bulk mining options. The updated technical report planned for the second half of 2027 is expected to highlight that potential. Both mining could potentially support higher underground throughput at a lower mining cost, replacing the lower grade feed from transit with higher grade feed from underground. We see this as a meaningful opportunity for Westwood, and we look forward to advancing that work. Turning to Essakane. The mine produced 94,000 attributable ounces in the third quarter or 10,500 ounces on a 100% basis. Year-to-date, Essakane has produced 277,500 attributable ounces, and we are on track for our guidance of 340,000 to 380,000 ounces mining totaled 11 million tonnes, including 3 million tonnes of ore. The mill processed 3.3 million tonnes at a head grade of 1.1 gram per ton, both mining and milling rates were in line with plan, which reflects the continued strong management of our supply chain by the team at Essakane. Most importantly, I can continue to generate strong cash flows. Mine site free cash flow was $27.1 million in the quarter and $735 million year-to-date on a 100% basis. Looking further ahead, we plan to publish an updated technical report for Essakane in mid-2027 which is expected to outline the potential to extend the mine life up to 2035 through additional phases in the Essakane and [ adjacent ] periods. Turning to cost. Essakane, a strong quarter. Cash cost, excluding royalties, were $1,122 per ounce, 21% lower than the prior year period. Cash costs were $1,603 per ounce, and all-in sustaining costs were $2,063 per ounce. Mining costs were $5.44 per ton, down from $7.13 a year ago as the satellite and the transition material in the level that requires less drilling and lasting. Royalties were $481 per ounce or 30% of cash costs. Our average royalty rate was 11% in the quarter compared with 9% a year ago. On energy, our fuel supply and costs have not been materially impacted by the conflict in the Middle East today, although fuel prices increased by about 3.5% in September, and we continue to monitor the risk closely. For the year, we expect cash cost, excluding royalties, to be within the guidance range of $1,150 to $1,300 per ounce and all-in sustained costs excluding royalties at the top end of 1,550 to $1,700 range. Finally, on the matter of the government bit, requiring companies to use local refineries and Burkina Faso. As we noted, we have received a temporary exemption from this reform. Meanwhile, we are working closely with the government and related stakeholders to ensure there is no interruption in the refining process. With that, I will pass it back to Renaud. Renaud?

Thank you, Bruno. Beyond our 3 operating mines, the Nelligan mining complex in Quebec is where we see the next chapter of IAMGOLD. The complex holds 4.3 million ounces of indicated and 7.5 million ounces of inferred mineral resources across a dominant land position of approximately 134,000 next year, making one of the largest preproduction gold camps in Canada. This year is about drilling, and we have expanded our program, Nelligan from 18,000 to up to 30,000 meters focused on upgrading ounces and testing extensions along strike and at depth. And at Monster Lake from 15,000 to at least 20,000 meters following high-grade hits deeper in the Megan zone. In total, we have completed more than 70,000 meters across Nelligan, Monster Lake and Philibert so far this year. All of the primary deposits is within the 7-kilometer radius which support our vision of the central processing facility fed by multiple ore sources. On October 27, we released our latest drill results from the complex, and we continue to build our confidence in what we have in the [ Shibugamu ] region. What stands out to me is that all 3 primary deposits are moving in the right direction. At Nelligan, mineralizations continue down plan with several intersections grading well above the current resource average. Fall [ N26 72 ] is a good example. It intersected 77 meters at 2.23 grams per tonne, well below the current narrowise envelope, at more than twice the average resource rate. At Monster Lake, we have extended the high-grade [indiscernible] to a depth of 600 meters and the grades are holding or [ ML-25-293 ] returned 7.7 meters at 24.5 grams per tonne, starting 750 meters down the hole. And at Philibert, our first drilling program come from the previously defined zones and grades and point to further potential debt. Given this result, we intend to run a substantially larger drill program at the complex in 2027. We expect to publish a primary economic assessment for the complex in 2027 which will bring the larger 2026 drills per gram into the study and bring these deposits together into one development concept for the first time, and we see the potential for the complex to continue to grow well beyond. Stepping back, Nelligan, Monster Lake and Philibert are each 100% owned by IMG, so our shareholders return to full benefit of the value we create. With continued success, we see the potential for Nelligan mining complex to become one of the largest assets in IAMGOLD's portfolio over time, and we are excited about the work ahead. With that, we will progress to questions. I want to congratulate our teams for another quarter of safe income system execution. IAMGOLD is on track for our production guidance. We have generated nearly $1.3 billion of mine site free cash flow so far this year and we have returned close to $600 million to shareholders through our buyback since December '25, all while building a net cash position and a strong balance sheet. At the same time, we are investing in our future. And through 2027, every one of our asset has a clear catalyst, which will demonstrate the potential of our portfolio from a position of financial strength. Thank you for your continued support. Operator, you can now open the line for questions.

[Operator Instructions]. The first question comes from Anita Soni with CIBC World Markets.

Congratulations on a solid quarter. Firstly, at Côté, it's good to see the reduction in processing costs in September. It looks like you got down to that 15-ish mark that you were targeting. Would that be sustained into Q4 and 2027?

Renaud?

Yes, that's the plan. Actually, the goal for Q4 is to sustain the momentum that we have at operating at nameplate capacity for the whole quarter. So this is the goal. And we believe that with that current production level it should be like in line with that target.

Okay. And then would that also -- that 36,000 tonnes per day, is that the goal in the $15 a ton for 2027? Or are there other shutdowns or maintenance that we should be thinking about?

No major shutdown until the end of the year and for 2027.

Okay. And then on mining costs for on mining costs, I just wanted to go over what you need to do in Q4 and 2027 to drive that closer to the sub-$4 per tonne mark. And is that ultimately what you see as the target still? Or are you still targeting something closer to the mid-3s on that -- on mining cost per tonne? So what do you need? I'm assuming it's a pushback and opening up the pit from what I recall from the mine tour, but now that we have some numbers around it, I just wanted to get a little bit more color on what you need to do to drive those costs down.

Yes. In Q4, we're going to rely less on the rehandling and taking a reset from the low-grade stockpile. So we're going to try to maximize most of the expected target of the mill. So you will increase the [ FCC ] the whole fleet. After that also as we expand the pit, you're going to be able to have better packet definition, larger blast also working on fragmentation loading [ FMC ] as well. So we have a very good plan ahead to decrease the cost from where we are now towards the $4 and even like mid in the mean [ 3 ] like later on. That's our goal.

Okay. And then the last one I'm going to ask and I'll jump back in the queue and then other people ask questions. Mart -- this one is for Maarten. Can you just walk me through how that royalty would be modeled? I just want to make sure that I've got it correct, but I would just assume the revenue times 2.14%, and that would be the royalty portion of your cash cost. Is that correct?

It would be revenue less cash costs, so your gross margin times with 2.1. And that is for IAMGOLD, if you model IAMGOLD at 70%. The asset on its own yes, 3.75%. The 30% that we now own from -- that was previously by assuming [indiscernible] what is reducing our portion at 17% further from 3.75% to 2.1%.

Yes, that's where the complexity comes in. I might need a follow-up call. So yes, I was just trying to figure out exactly how you would report these cash costs versus what the -- like the effective benefit. So I'd be modeling those the gross margin at 3.75% if I model is at 100% basis and then applies anyway, we'll take it offline. I think I'm running myself in short both on this one.

The next question comes from [ Fahad Tariq ] with Jefferies.

On the Côté royalty buyback, can you just confirm that you're using cash on the balance sheet to fund the $525 million and not adding debt? And then second, just any thoughts around how you came to the decision on the buyback now. Any internal models on the payback period, IRR, et cetera, would be helpful.

Good morning. So for the royalty -- sorry, I missed part of your question. But basically, for us, we will be using cash from the balance sheet. We're going to continue to use cash as it comes in from its again to buy back shares as well. If there is a need, we may have to draw on a credit facility, but it would be very short term if we have to do that. The timing for us makes sense now because then it is effective on the first of January next year, and it's keen for the next year. If you look at the valuation that Bank of Nevada did on the asset 15 years ago when they bought the royalty from a third party, we are buying it at that same valuation effectively, but the gold price environment is a lot higher. So that is what is having the impact for us. And the additional 150,000 -- $150 per ounce is also a big contributing factor for our decision to do this. So it gives a good return. It's all dependent on gold prices. And I think having the full study later this year will help people understand that, [indiscernible].

Okay. And then on that study, can you just talk about the how you're thinking about how we should be thinking about the reserve price assumption? And then also, just to confirm, will that study only show the 40,000 tonnes per day base case? Or is there like some sort of upside case that will also show higher expansion?

No, the -- Renaud here. So to make it shorten also the study somewhat a bit of an update kind of the new base case of 2022, where the asset was moving from 36 towards 42 with additional equipment that are currently being installed. So it's going to highlight the full resource potential as we've discussed, Côté [indiscernible], which will be turned into the reserve. We're going to use $2,100 an ounce for the reserve price for the study. And it does not highlight beyond, but we'd highlight production profile that we allowed to try to rethink and execute on time should we decide down the road to have an expansion without losing the production profile. That is that easy objective.

And on the reserve price?

The [ $2,100 ] an ounce.

The next question comes from Mohamed Sidibe with National Bank Financial.

Just wanted to ask a question on the Burkina refining order and on November 1 requirement. I think you noted that you do have a temporary exemptions on that requirement. First, how long does that last? And secondly, is this requirement impacted in any way, shape or form the cash repatriation on settlement timing that you currently have and the benefit that you have of basically taking cash out of SK?

Yes. So here is that there's kind of nothing really new here. I mean this refinery, the government announced like it wasn't more than a year ago, the construction of refining with the view to give them a chance as well to refine in-house from the small scale up to the commercial. There is quite a bit of a ramp up and so forth. So there is no date on the exemption. So business as usual for the time being, and eventually down the road, it would be -- there would be discussions with the refiner. And our view on this is when everything and everyone is ready and there could be a potential for us to a refining in-country a portion of all but there's quite a bit of work to be done before we get there. In terms of any change or things like that in the process. So Maarten, if you want to add anything. But for the execution per se, there is no -- the real risk of the impact here is really working capital and if it delays the gold sales process, but there's very good alignment with the government in these discussions because once the gold gets exported, that's when it triggers the royalty payments to the government as well. So everybody wants to, of course, make sure that we can convert the gold into cash as quickly as we can. And that we've been allow us to not have that working capital impact. If it is a bit slower, there would be some working capital, but it doesn't affect our ability to create cash, it may just slow it down slightly.

Great. And then for my second question, just on the Westwood large I know that in the MD&A, there is a potential mention of the gold coming in or landing in Q4. But could you maybe give us a little bit more color on the refining, the assay time lines and how you're working through this.

Maarten?

So the material is being shipped in batches to the external refinery and processing has just started this week. So we expect over the course of November and first half of December to finish that process so that we should at least the assays because we're doing batches, we will be able to then convert it into sales as well. So when we get to the end of the year, we should have a good understanding.

The next question comes from [ Harrison Reynolds ] with RBC Capital Markets.