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Edited Transcript of PG.TO earnings conference call or presentation 6-May-20 2:00pm GMT

Q1 2020 Premier Gold Mines Ltd Earnings Call

Thunder Bay May 15, 2020 (Thomson StreetEvents) -- Edited Transcript of Premier Gold Mines Ltd earnings conference call or presentation Wednesday, May 6, 2020 at 2:00:00pm GMT

TEXT version of Transcript


Corporate Participants


* Ewan Stewart Downie

Premier Gold Mines Limited - President, CEO & Director

* John A. Begeman

Premier Gold Mines Limited - Executive Chairman

* Peter Pascal Van Alphen

Premier Gold Mines Limited - COO

* Steven J. Filipovic

Premier Gold Mines Limited - CFO




Operator [1]


Good morning, my name is Jessica and I will be your conference operator today. At this time, I would like to welcome everyone to the Premier Gold Mines Q1 2020 Operating Results Webcast Conference Call. (Operator Instructions)

Mr. John Begeman, Executive Chairman, you may begin your conference.


John A. Begeman, Premier Gold Mines Limited - Executive Chairman [2]


Thank you and thank you for participating in today's call. I am John Begeman, Executive Chairman of Premier Gold. With me on the call today are Ewan Downie, President and Chief Executive Officer; Steve Filipovic, Chief Financial Officer; Peter Van Alphen, Chief Operating Officer; and also on the call today are Matt Gollat, Vice President of Business Development; and Brent Kristof, our Senior Vice President of Operations. All will be available during the question-and-answer portion of the call.

Today, we will provide you with the company's 2020 first quarter financial and operational results and update on the mine operations and projects will also be provided. For those of you that haven't already accessed the presentation, presentation materials for today's call have been posted and are available on the company's website.

Before we get started, I first want to direct you to Page 3 of the presentation and the associated disclaimer regarding forward-looking statements. Our management team will provide a discussion summary, but first a few points. On behalf of Premier, I'm hopeful that you, your families, friends and associates are safe and healthy and remain so during this current pandemic. This is a difficult time as our employees adjust to working remotely while carrying on the business activities of the company and in the case of Mercedes those employees conducting and maintenance activities are keeping the mine ready for reopening when that time comes. A big thank you goes out to all of you.

The company remains strong in a strong position with a balance sheet of US $66.4 million in cash and cash equivalents. Our cash position allows us to continue with our exploration activities and continue with mine development in Nevada as well as the Mercedes mine. At South Arturo, the El Nino underground has met or exceeded our production expectations to date. Additional production opportunities including the two additional open pits and an associated heap leach operation are the focus of ongoing optimization. Currently, it is Premier's opinion that the future development plan will benefit from further drilling to evaluate the best economic opportunity for this strategic property located on one of the world's most prolific gold jurisdictions.

At Cove, we are currently reviewing the results of a hydrology study prior to initiating an underground program and feasibility study, process and permitting options to further advance what we hope will be a future production decision are ongoing.

We continue to advance work to optimize additional assets within our growth pipeline including the company's flagship Greenstone gold mines joint venture where positive resource update is expected to materially affect project economics. The current environment with high gold prices, favorable US-Canadian exchange ratios and reduced oil prices are having significant implications to the project economics.

Our recent offer to acquire Centerra's interest in Greenstone that was subsequently refused and made in conjunction with the third-party highlights the value of the strategic project located on the Trans-Canada Highway in Northwestern Ontario. Production at Mercedes remain below expectations of the company and the company is taking steps to reduce mining dilution and develop higher grade zones to enhance short-term mine plans as we plan for the restart of production this month.

The other members of the management team will discuss these and other topics further after the financial presentation. I know now draw your attention to Slide 4.

Premier's locations are 100% North American focused. We are in safe world-class jurisdictions and four core advanced stage projects. On the map, you can see we are located in Ontario, Nevada and Sonora, Mexico. We have a growing business model of growing production through multiple new mine developments in Nevada. Two projects are being permitted for future development decisions. The Greenstone gold project is a large scale derisked project located on the Trans-Canada Highway. Premier has a commitment to exploration for reserve and growth and resources. We ended the quarter with 66.4 million in cash and cash equivalents.

Next slide. Premier has shown a strong history of mineral reserve and resource growth over time. Currently, we have 2.98 million ounces of mineral reserves in proven and probable. We also have 6.08 million ounces of mineral resources. These reserves support current and future production of more than 16 years of production run rate for the future. Company culture, we have a long-term standing exploration of growing gold resources through sustained exploration focus and the 2020 exploration campaigns are active at South Arturo, Mercedes, McCoy and Hasaga. We expect the year-end updated mineral resource estimate to be conducted and completed at South Arturo and Hasaga.

Next Slide, please. This Slide illustrates our extensive growth pipeline. In the exploration category, we have Rye, Rodeo Creek, both of which are in Nevada, and 100% owned by Premier Gold. In Ontario, we have the Hasaga 100% Premier and the Rahill-Bonanza joint venture with Newmont, both in the Red Lake camp.

In the conceptual and scoping stage, we have South Arturo Phase 3. Currently in feasibility is the Greenstone project, South Arturo leach project and the McCoy-Cove project. In the execution phase, we have South Arturo Phase 1 which was begun and now suspended temporarily while we evaluate the opportunities for the Phase 1 pit. Current production, we have Mercedes albeit at the moment under care and maintenance due to the current pandemic and South Arturo El Nino in Nevada, which is ongoing at the moment. I now will turn it over to Steve Filipovic, our Chief Financial Officer, for the next portion of the presentation.


Steven J. Filipovic, Premier Gold Mines Limited - CFO [3]


Thank you, John. Good morning, everyone. I'll be speaking to Premier's first quarter operating results for 2020. So at this point, I refer everyone to Slide 7 in the presentation. During the first quarter of 2020, Premier produced a total of 18,317 ounces of gold and 52,832 ounces of silver, that's up 4% from Q1 2019 where we produced just over 17,600 ounces of gold. With more than 18,000 ounces produced by Premier during Q1, approximately 2/3rd or roughly 11,500 ounces came from the Mercedes mine in Sonora Mexico. While development of Mercedes is progressing toward higher grade areas within the mine, the low grade Diluvio zone where mining dilution is a challenge continue to be the primary source of ore during the quarter.

Efforts to address dilution began to indicate some success during the latter part of the quarter. A reduction in the mining rate during the last 10 days of March further impacted production as the mine began preparing for the government post shutdown in response to COVID-19 pandemic. The remaining 1/3rd or 6700 ounces of production reported by Premier in the quarter came from the El Nino underground mine at South Arturo. Q1 was the second full quarter of production at El Nino since its commissioning in the fall of 2019. Despite numerous challenges associated with the COVID-19 outbreak, the South Arturo operation continues to operate without significant disruption with the El Nino mine now operating at its planned production level.

The Mercedes mine which was placed in the care and maintenance at the end of Q1 is now in the process of planning for operations to resume once operating restrictions are lifted by the Mexican health authorities. Focus at Mercedes is upon its return to normal operations with the development of higher grade zones including the Lupita Extension and the continuation of operating efficiency and cost reduction initiatives throughout the operation.

Our efforts to improve efficiency and reduce operating costs at Mercedes to-date have had positive impacts on per ton mining and processing costs; however, lower than planned production levels associated with processing lower grade ore have resulted in unit operating cost per ounce of those previously guided for the mine. Unit operating cost at South Arturo were much lower than those at Mercedes, only partially offset Mercedes (inaudible) consolidation and that's due to El Nino mines relative contribution in the first quarter production levels.

At a consolidated level, our unit operating cost per ounce on a co-product basis for the first quarter were cash cost of 1,173, all-in sustaining cost of 1,584. That compares to consolidated cash costs of 806 and all-in sustaining cost of 1,105 in the prior year.

Company's focus on reducing mining and processing costs at Mercedes will become more evident once they translate for unit cost per ounce of production. As reductions in mining dilution are achieved and the company transitions to processing higher grade ore as development reaches those higher grade zones within the mine.

Turning to Slide 8, during the first quarter 2020 of the company reported revenue of $22.7 million on sales of 14,992 ounces of gold at an average realized price of US $1,474 and 41,794 ounces of silver at an average realized price of $16 per ounce. That compares to Q1 2019 where the company reported revenue of $22.1 million on sales of 17,500 ounces of gold at a realized price of the $1,271 and 62,581 ounces of silver at a realized price of $16.

Revenue recorded for the first quarter of 2020 was relatively consistent with that of the prior year due to a $203 increase in the related gold price over that in the prior year despite lower reported sales volumes during the corresponding periods. The number of ounces sold during 2020 was lower than those ounces produced during the same period as production from El Nino mine at South Arturo was following the same processing arrangement as that of Phase 2 opening pit and that's where gold received by Premier is in the following month from that in which it is produced.

This is gold that is produced at Eureka's Goldstrike facility in Nevada.

The company reported an operating loss of $0.5 million and a net loss of $11.9 million or loss per share of $0.05 during Q1 2020 after taking into account completion of $4.8 million exploration and development expenses of $4 million and over $5 million of net unrealized losses relating primarily to foreign exchange during the quarter. This compares to Q1 2019 where we reported mine operating income of $3.7 million and a net loss of $0.9 million and earnings per share of 0. From a cash flow perspective, company reported $26.5 million of cash used in operating activities and that's after taking into account $22.9 million in working capital adjustments and those are related primarily to the payment of accrued liabilities, another $5.3 million in net non-cash expenses during the quarter. We also reported a total of $4 million in capital expenditures during the first quarter of 2020.

Company completed a public offering and made amendments to as gold prepay and offtake arrangements with Orion during Q1. Those financings generated net proceeds of approximately $40.5 million during the quarter after taking into account $26.5 million in cash used in operations and the $4 million of capital expenditures, the company reported a net increase in cash of $10 million and finished the quarter with $66.4 million in cash.

Balance drawn against the company's $50 million credit facility with Investec remains at $17.5 million at March 31st and further draws against facility is subject to Investec approval until such time as they are satisfied once Mercedes is back within normal operating parameters. At this point, I will turn your attention to Slide 9 and I will turn the presentation over to our President and CEO Ewan Downie. Ewan will provide more detailed project-by-project update. Ewan?


Ewan Stewart Downie, Premier Gold Mines Limited - President, CEO & Director [4]


Thank you, Steve. In the next Slide, the first project that we're going to go over is Mercedes, and Peter Van Alphen, our Chief Operating Officer, will go through the next few slides.


Peter Pascal Van Alphen, Premier Gold Mines Limited - COO [5]


Thanks a lot, Ewan. Good morning, everybody. I'll start here with the update on the Mercedes operation as has already been mentioned it has still been a challenging time for the Mercedes mine on several fronts. Steve mentioned earlier, you will see in the Q1 results, we continue to struggle with the grade at Mercedes. We are seeing success in the work carried out to date and the team continues to work hard to realize the gains we need to achieve a profitable operation and ensure Mercedes remains a profitable operation going forward. We are continuing with our drill programs focused primarily on the high potential areas of Marianas, San Martin and Lupita extension. We remain focused on continuing to better understand the areas we're currently mining in and develop new areas for future growth. We will continue to search for new deposits and allow us to increase the lots of the Mercedes mine.

We have focused a lot of effort this quarter on our mining practices and productivity. We have seen increased success in these areas of the quarter progress and late in the quarter we started seeing some of the gains as a result. This work is ongoing and remains our primary focus.

Like most of the mining industry, we had to make some changes as a result of the COVID-19 pandemic the world is going through. In response to the decree from the Mexican government, we put the mining to care and maintenance starting on May 30. The team has done a wonderful job under these difficult times. To date, we have had no known cases of COVID-19 at the mine. We have put in place of prevention program that is aimed at safeguarding the well-being of our employees, their families, our contractors and suppliers and very importantly our neighboring communities.

We are currently working towards staged restart plan which is expected to begin before the end of May. It will be a phased approach based on safeguarding the health of our people and the communities around us. We will increase operational activity as we are able to accommodate more people on site in a safe manner.

Go to the next slide, please. As I mentioned earlier, we have focused on continuing delineation and expansion of some of the new areas at the mine, I mean Lupita extension and San Martin. We also continue to delineate the Marianas deposit. We are now actively mining in Lupita extension and currently developing the main access ramp for this zone. We have successfully modified our fleet of mining equipment to better suit the areas where we are now working allowing for smaller headings and hence reducing the dilution.

Currently, we are using this time while in care and maintenance to evaluate the current mine plan and see if the improvements we can make to the plan in how we mine these deposits, improving our short-term planning ability and ensuring we are profitable going forward. On Slide 11, we see the Lupita extension and San Martin we are currently working in and the drilling taking place. We have seen some really good drill results so far and it's the mining conditions that we have seen to date I would describe as being quite good overall when compared to the rest of the deposit.

If we move on to Slide 12, we'll move on to South Arturo, and Ewan will speak to the El Nino project.


Ewan Stewart Downie, Premier Gold Mines Limited - President, CEO & Director [6]


Thank you, Peter. We as a company are quite excited by our portfolio in Nevada and the future of South Arturo we expect to positively impact the company for a long time to come given that we have now declared commercial production at El Nino, which began production in late 2019 and is now operating and continues to operate during the COVID-19 pandemic and we are having an ongoing evaluation process with our partner Nevada Gold Mines in order to evaluate the best path forward in developing future operations on the property, which include 2 additional open pits and the heap leach project.

On Slide 13, it gives a general overview of the South Arturo properties. South Arturo is located in the North West extension of the North Carlin Trend and is strategically located immediately adjacent to the large Nevada Gold Mines complex operated by Nevada Gold Mines. The property is having our partnership with Nevada Gold Mines. Premier as far as I know is Nevada Gold Mines only operating partner in Nevada and we hold 40% interest with Nevada Gold Mines as operator holding 60.

As I mentioned, the commercial production was achieved at El Nino underground mine in the late second half of 2019 and performed well for the company in first quarter of 2020. We continue to develop an optimization plan for the additional developments given several positive developments in 2019 that we are assessing what is the best path forward likely will include an extensive drill program. Going forward we're just working towards agreeing to a program with our partner, we are doing that work as we speak. The exploration upside on this property I believe is one of the best in our company's portfolio and there is good potential to expand El Nino, expand Phase 1 and develop additional targets like East Dee for future mining and I believe this will be a long-term production center for our company.

To the north of the South Arturo property is Rodeo Creek project, which we hold an option to acquire 100%. We are not currently doing any exploration on that property; however, we believe there is a strong potential that the primary structure at the Phase 1 pit and to the north into Storm continues to trend north and at depth will continue on to the Rodeo Creek property; however, in 2020 we don't plan to do any drilling on that project. Our plan would be to wait until further drilling is done on the joint venture to the south prior to proceeding, which drilling if and when carried out would provide us a better idea on where the best targets are at Rodeo Creek.

On Slide 14, the upper image is a conceptual image of what the longer-term plan at South Arturo is. Currently, we have depleted mining in the Phase 2 pit which on that image on to the east or on the right and we completed mining there in late 2017. Since then the pit was partially backfilled and in the lower image, you can see that the infrastructure that was put in, including two declines to access the high grade extension of what was mine in Phase 2 and that is referred to as our El Nino underground mine.

Drill program in 2020 will focus on expanding reserves and resources as the El Nino deposit remains open at depth and on strike. In the Phase 1 pit shown on the left, partially stripped in 2019, a large stockpile of heap leach material was also made on site as we were stripping through the heap leach drill that was expected in the pit.

During that stripping though, we encountered approximately 91% positive tonnage reconciliation versus the model and the partners I believe feel that additional drilling is needed in this area to assess exactly how much heap leach material is in the Phase 1 pit and perhaps the best forward would be constructing our heap leach pad prior to stripping that is the program that we are currently working on with our partners going forward. The East Dee and South Hinge targets are two additional potential underground projects that will be drilled in the future. Not entirely sure if we're planning drilling on either of those this year but there will be a drill program carried out on Phase 3 which is planned to be the next phase of mining.

While drilling in 2019 encountered a 72% positive grade reconciliation versus the model and also intersected significant mineralization outside of the pit. The pit design is planned and that is shown on slide 15. Some of the drilling you can see some excellent results including 62.5 meters of nearly 8 grams within the previous pit shell design. However, MAD19004 inspected almost 113 meters of over 7 grams material outside of the current pit design and in my opinion requires additional drilling in that area to better assess exactly how much mineralization occurs at depth and what the best plan to mine that area is and that would likely either include a larger pit or an underground decline.

So the plan for this year includes some drilling to continue to follow up on the high-grade depth extension at Phase 3. Other work will also continue to assess. The heap leach portion as you can see in the upper parts on the right are the east side of the pit drilling in that in 2019 encountered nearly 120 meters of 1.78 grams per ton. It appears as though all of that would be oxide side and we are doing additional work to assess exactly where the oxide boundary is and therefore that would allow the partners to design a program of which part would be heap leach or milled and which part would require processing through one of the processing facilities at Nevada Gold mines that processes refractory ore.

Moving on to Greenstone gold mines as John Begeman mentioned earlier the project was subject to a bid for our partners' interest during the quarter and that offer was refuted by Centerra. We continue to work towards a resolution with our partner that this important project can move forward. The project on 100% basis contains 7.1 million ounces of measured and indicated resources and 3.9 million ounces inferred. It sets immediately on the Trans-Canada Highway so the infrastructure is one of the biggest benefits of this project and it is now fully shovel ready as we have our the operating company Greenstone gold mines has done a terrific job of advancing this project such that the federal and provincial governments have approved the EA/EIS process and impact benefit agreements are in place with all required first nations.

So full support for this project to advance and it is Premier's opinion that this project, especially in light of the current gold environment and the Canadian exchange ratio should be developed as it is one of the largest and best located shovel ready deposits I think you'll find anywhere in the globe. The significant upside for this project is the underground extension of the deposit has not been factored into any of the economics to date nor have Brookbank or Key Lake, which are two additional projects that will likely contribute to the future production profile for this property.

Slide 17 during 2019, Premier released new resource update which was completed by G-mining and independent consulting firm on behalf of Greenstone gold mines. The funding of this project continues to be entirely funded by our partners who have approximately 40 million Canadian remaining at the end of March. The project is held under our 50-50 partnership with Centerra and for myself I would like to see -- our company has worked together at finding a resolution in advancing this project on an expedited basis.

Slide 18 shows the proposed pit on the left on the image. The project when we did the feasibility study in 2016 for Premier, as the economics for each company are different, because we have been carried and continue to be carried at that time, showed a 17.5% internal rate of return in a 14.5-year mine life. With the updated resource and work that is being done, we believe that the project economics after spending approximately $90 million since that feasibility study on de-risking and optimizing the project has significantly impacted the project's economics, and that is the work that we're continuing to look at advancing as we move towards a hopefully what will be a construction decision in the future.

The underground project, the resource model has shown there with the various gray to purple colors and the underground deposits, which comprises approximately 3 million ounces of inferred and 1.24 million ounces of measured and indicated remains wide open down plunge as the westernmost holes that we drilled on the project intersected 20.5 meters grading 18.49 grams per ton. In addition to the underground extension, which was not factored into any of the economics and offers significant upside.

Sn Slide 19 shows the Brookbank deposit which is currently has a small pit shell design and an underground project has been subject to an early PEA that Premier completed prior to Centerra working with the company, that was a positive PEA and in the future we believe will be advanced in terms of permitting and economics such that Brookbank will be a satellite deposit and will feed the ultimate mill at hard rock or the Greenstone site.

The image on the right shows multiple intercepts that were drilled into several delineated high grade shoots in what we call the Key Lake project. Some of these intercepts are a bit difficult to see on this slide, but intercepts, when we were drilling that, were up to over 200 grams per ton over narrow widths and the [farthest] west drill holes drilled in the west extension shoot intersected 8.5 grams per ton over 8 meters immediately down plunge of an intercept of 3.4 meters grading nearly 45 grams per tons. So very good grades. There is some exploration being done in this area in 2020 and it is my hope that the operating company Greenstone gold mines undertakes additional drilling in this area in the future because Key Lake could be a significant component of adding additional resources and ounces produced per year to the overall project and it's located only 14 kilometers to the west of the proposed mill site at Hard Rock.

In terms of our future projects we continue with Premier not just to sit back and wait for projects to come to us, we're looking at developing a mine plan for the company that will see decades of production. McCoy-Cove and Hasaga are 2 projects that we are advancing in terms of exploration or advanced exploration, Cove being more advanced and is one of the highest grade undeveloped gold deposits in the United States.

Hasaga in Red Lake is the first mine that ever produced in Red Lake, it produced over 640,000 ounces of gold up until 1952 and that it sat largely idle until Premier picked up the property and performed several drill programs resulting in an open pit resource and we believe that 2020 drill program that was temporarily postponed because of the COVID crisis, and we expect will resume in the coming weeks. That program in 2020 is aimed at developing an underground resource that will continue to grow our company's overall resource base that we hold.

Slide 21 just gives a highlight overview of the McCoy-Cove property shown in blue on the image. The project occurs immediately south of Nevada Gold Mines Phoenix operation. Currently, it holds indicated resources of 342,000 ounces grading 11.2 grams and inferred resources of 1.32 million ounces grading at 11.24.

This deposit was delineated immediately adjacent to the past producing Cove pit. Cove and McCoy pits up until 2003 produced over 3 million ounces of gold and approximately 110 million ounces of silver shutdown owing to low gold prices even though they had partially delineated an underground deposit.

We followed that up and have now developed what I believe is the highest grade undeveloped plus 1 million ounce gold deposit right now in the United States. We did complete a PEA showing our robust economics. A 2020 exploration drill program is expected to start this week and that will be testing several very exciting targets that we hope will continue to grow our resource base here.

We just are completing hydrology and metallurgical work in advance of an underground program to further delineate deposit and move to a feasibility study and ultimately what we expect will be a positive development decision in the future.

Slide 22, a highlight we are permitted for the underground development program so the power line was constructed to site in 2019. We have delayed going ahead with the underground decline in favor of what we feel will ultimately be the development of Hard Rock; however, the next phase of work here following the drill program that we're doing testing at new areas at potential, looking for discoveries of additional deposits in the area. The [subsequent] program would be putting in the decline completing delineation program to upgrade the inferred resources to indicated that will be required to ultimately complete a feasibility study.

The deposit continues even though it's approximately 1.6 million ounces in all categories. It remains wide open for expansion towards the CSB zone that isn't shown in this image but occurs to the right of the image; that area is open for expansion. The plan would be to continue to expand follow up the easternmost holes from our surface program and intersect at 3 m at 40 grams gold and 51 meters of just over 7 grams including 13.1 meters grading 16 grams. So very high grade opportunities to extend the operation underneath the historic pit and we believe will ultimately lead to an overall resource that I believe will in the future will exceed 2 million ounces.

Slide 23 shows the Cove project up until 2017, we did several drill campaigns that resulted in a significant mineral resource and that's an open pit target in the upper areas of the property. We acquired the property believing that it had some of the best open pit potential in the Red Lake camp and we acquired the property from at the time what was Goldcorp, the owner of the Red Lake mine. The Hasaga and Howey mines the area shown in gray produced over 640,000 ounces of gold up until 1952. Unlike most of the current operations in the Red Lake camp that are narrow vein high grade structures, this mine was a more of a bulk underground mine similar to what you'd see at West Timmins operated by Pan American or Goldex operated by Agnico Young-Davidson that are currently being operated by Alamos, all of these projects are in Canada, similar mines broad deposit mined with longwall mining methods, bulk mining and the historic mine grade of approximately 4 grams that was taken out of Howey and Hasaga would suggest that it has higher grades in the peer deposits that are currently operating in Canada that I just suggested.

We have partially delineated and what we call the C&D zones, part of that we now call the F deposit at depth and it is believed to be the extension of the previous operation. The best hole that we drilled in our previous campaign intersected 54 meters of nearly 11 grams showing the good width and locally very high grades for this operation and the deepest most westerly hole that we drilled in what's called the D-zone intersected at 181 meters of 1.2 grams with several higher grade sections and is yet to be followed. So drill campaign this year is going to be hopefully linking the C&D zones that are shown in this image and doing further delineation in what we call the upper D where we had intercepts at the 6 meters of nearly 13.7 and 8 meters of 9.5 grams per tonne immediately on strike with some of the historic underground development.

So we believe there is a strong potential that at the end of 2020 we will have delineated sufficient mineralization in the lower areas to complete 43-101 resource estimate for both the open pit and the underground. So with that, I will bring the summary page up on Slide 24 and we will end this call and take some questions. The company has successfully constructed a portfolio of projects ranging from exploration to production that we believe will allow the company for years to come to grow our production profile several multiples from where it is today. We haven't stopped looking at where our roots are and we have a sustained exploration effort across the company's entire portfolio with exploration programs planned at South Arturo, Mercedes, Hasaga and McCoy-Cover for this year and with the development of new mines into our portfolio our goal is to grow long-term cash flow that will ultimately lead to a self-sustaining company. Thank you.

So I'll wait for the operator to come on and then we will take any questions.


Operator [7]


(Operator Instructions)


Ewan Stewart Downie, Premier Gold Mines Limited - President, CEO & Director [8]


So I don't believe we have any questions. Therefore, I thank everybody for attending today. I think you will see that Premier has one of the industries, especially in terms of the small producer, one of the industry's top development pipelines with significant potential to grow our production several folds and our company has a strong balance sheet to achieve the growth with nearly $90 million Canadian in the treasury at the end of the quarter.

If anybody wants to call any of us as always we are available to take calls offline as well. Thank you very much.


Operator [9]


Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and ask that you please disconnect your lines.