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Edited Transcript of TXG.TO earnings conference call or presentation 3-May-17 1:00pm GMT

Thomson Reuters StreetEvents

Q1 2017 Torex Gold Resources Inc Earnings Call

Vancouver May 6, 2017 (Thomson StreetEvents) -- Edited Transcript of Torex Gold Resources Inc earnings conference call or presentation Wednesday, May 3, 2017 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Frederick M. Stanford

Torex Gold Resources Inc - CEO, President and Director

* Gabriela M. Sanchez

Torex Gold Resources Inc - VP of IR

* Jeffrey A. Swinoga

Torex Gold Resources Inc - CFO

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Conference Call Participants

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* Dan Rollins

RBC Capital Markets, LLC, Research Division - Head of Global Mining Research and Analyst

* Josh Wolfson

Eight Capital, Research Division - VP and Senior Analyst

* Matthew Dennis O'Keefe

Echelon Wealth Partners Inc., Research Division - Senior Mining Analyst

* Rahul Paul

Canaccord Genuity Limited, Research Division - Director

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Presentation

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Operator [1]

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Welcome to the Torex Gold Resources First Quarter 2017 Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. (Operator Instructions)

I would now like to turn the conference over to Ms. Gabriela Sanchez, Vice President, Investor Relations. Please go ahead.

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Gabriela M. Sanchez, Torex Gold Resources Inc - VP of IR [2]

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Thank you, Operator, and good morning, everyone. On behalf of the Torex team, welcome to our first quarter 2017 conference call.

Before we begin the presentation, please note that certain statements to be made today by the management team may contain forward-looking information. So please refer to our detailed cautionary note in today's press release.

We have in the room, Fred Stanford, President and CEO; and Jeff Swinoga, CFO. Following the presentation, they will be available for the question-and-answer period.

This conference call is being webcast and will be available for replay on our website. This morning's press release and the accompanying financial statement and MD&A are posted on our website and have been filed on SEDAR. Also note that all amounts mentioned in this call are in U.S. dollars, unless otherwise stated.

I will now turn the call over to Fred.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [3]

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Thank you, Gabriela, and good morning to all. I will start off by reporting on safety environment in the community. Safety performance continues to be excellent. A pinch resulting in a cut to a finger was the lone lost time injury in the quarter. Environmental protection has continued at a -- high levels of performance as well. There were no exceedances in the quarter and preparations are well underway for the upcoming rainy season.

Community relationships have continued to be excellent and productive. However, not all community members benefit equally from our operations and blockading continues to be a tactic of a small minority that believe they should get more from the company than they do now. We have contingency plans in place for these intermittent incidents and achieve near-continuous operation of the processing plant during the first quarter incident that we reported on during the last quarterly call.

We continue to work with the government to improve social services in the area, and to provide consequences for those that choose to pursue these illegal blockade actions.

Shifting to plant throughput, in 2016, during the first year of the ramp-up, we managed cash flow by processing higher than life-of-mine average grades, while throughput was lower than life of mine design levels.

In 2017, during the second year of the ramp-up, we are transitioning to processing life of mine average grades at a -- life of mine average throughput levels.

In Q4, of 2016, plant throughput was 66% of design capacity. In Q1, we experienced a steady improvement in each month, achieving an average of 80% in March, and this improvement accelerated in April, when we achieved an average performance of 91% of design capacity.

De-bottlenecking of the Tailings Filtration Plant has been a source of the improvement. Additional filtration capacity has been ordered to ensure that this plant does not become a bottleneck again, and to improve, provide optionality and to increase throughput to culminate Sub-Sill and Media Luna in the future.

Regarding grades and recovery, as everyone knows, it is mathematically challenging to continuously operate at above-average, life of mine grades, and in Q1 our process grades came back to a very respectable 2.49 grams per tonne. This is only slightly below life of mine average, but it's 29% below the high-grade peak of 3.49 grams per tonne, that was processed in Q4 of '16. The unit cost would come back in line when we complete the ramp-up to 14,000 tonnes per day, with life of mine average grades.

Recovery is at 85%. We're 2% below design levels and were largely the result of an error by an inexperienced operator. That's been a learning experience for everyone.

In terms of grade and ounce reconciliation of the reserve model. The El Limón pit has contributed significantly more tonnes in Q1 and has now been included in the reconciliation calculations.

For the tonnes mined in Q1, the grade reconciled to 96% of what was predicted by the reserve model. There were 26% more tonnes than anticipated by the reserve model and the ounce is reconciled to 121%.

The key thing to note from the charts included in the press release, is that the cumulative reconciliation line for grade and ounces is flattening out in the mid-90s. Each successive quarter will represent a smaller percentages of the tonnes used to calculate the cumulative reconciliation. So the flattening trend line will become a good predictor of how the deposit as a whole is going to reconcile.

In terms of processing plant investment, the SART plan construction team made excellent progress in Q1, with the completion of earthworks and concrete pours. The process thickeners are now being assembled in place and then the building will be constructed around them. Project is on schedule to deliver the all-in, sustaining cost reduction of $100 per ounce starting in 2018.

In Q1, an order was placed for additional filtration capacity. The frames for the filters are being fabricated now. Earthworks are underway. Commissioning of additional capacity is expected in Q4. This capacity will also provide optionality increase throughput for Sub-Sill and Media Luna material.

And in April, the dome over the Fine Ore Stockpile was completed. The dome will protect the environment from dust in the dry season and will protect the fine ore material handling system from the environment during the rainy season.

In terms of mining investment, as per plan, the mining fleet of El Limón was enhanced to match the expansion of the growth in production from this pit. Two trucks and 3 drills were added to the fleet in Q1.

Guajes Pit is in heavy stripping mode, as the western end of the deposit has opened up for production. The Sub-Sill ramp and the El Limón deep ramps are both progressing as per schedule. The Sub-Sill ramp will be into the Sub-Sill skarn before the end of Q2, and the El Limón deep ramp will reach the diamond drilling horizon, shortly thereafter.

A 15-kilometer Sub-Sill diamond drill program commenced in early Q2. The geotechnical and infill portions of the program will be completed in Q2. The information from this drill program will inform the mine design efforts that are underway. And initial Sub-Sill reserve is expected before year end, with material in the processing plant well before then. The step-out portion of the drill program will largely take place in Q3.

And finally to midterm growth, from Media Luna. Over the past 18 months, significant internal effort has been invested in optimizing the Media Luna design, as viewed through the lenses of commercial, technical and social perspectives. We're now satisfied with the result of that effort and Dawson Proudfoot, our VP of Engineering, has started to recruit his feasibility study design team.

The first order of business will be update the PEA, followed by design work to a level of detail required to support permit application, and then on to a full feasibility study.

One of the scheduled enhancements proposals is to avoid the expiration access ramp and utilize conventional directional drilling techniques to infill drill from surface, to portion of the deposit that will be mined first. Dawson has requested quotes from diamond drill companies and we'll be making a decision as to this option in Q2.

The updated PEA, we look forward to sharing with you, but we believe will be a very innovative and elegant Media Luna mine design that will be even more of a commercial and social success.

I'll now turn it over to Jeff to comment on the financials.

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Jeffrey A. Swinoga, Torex Gold Resources Inc - CFO [4]

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Great, well thank you, Fred. As Fred mentioned, in 2017, we are transitioning to processing life of mine average grades versus 2016 as throughput continues to improve. This resulted in 70,747 ounce of gold sold in Q1, at a realized price of $1,227 per ounce, generating revenue of $86 million.

Q1 net income was $8.9 million or $0.11 per share, a decrease of 17% over the fourth quarter, largely due to fewer ounces sold as a result of processing lower grade ore.

Our operating cash flow, after changes in noncash working capital and after tax and royalty payments of approximately $12 million, was $19.8 million. This quarter we spent $25.6 million on capital expenditures, $8.8 million was on the release of restricted cash to pay the taxes; $5 million for debt repayments upon our VAT equipment loan and leases; $6.59 million was for interest payments; all of which resulted in a $10 million decrease in our cash-on-hand balance to $94 million.

Mining costs in Q1 were better compared to last year, and averaged $2.60 per tonne mined. Processing costs were lower than Q4 and averaged $28 per tonne processed, and are expected to improve as tonnage increases.

With the addition of the SART plant, we expect to reduce our reagent consumption and bring our processing costs down to $18 per tonne, starting in 2018.

Total cash costs per tonne of ore processed averaged $50 per tonne in Q1, an improvement versus our $53 per tonne in Q4. With more tonnes being processed this quarter, we -- the cost of sales for Q1 were approximately $2 million higher than Q4 last year.

On a per ounce basis, our Q1 total cash cost was $671 per ounce and all-in sustaining costs were $923 per ounce. As mill throughput continues to improve, we expect our cost-per-ounce metrics to decrease.

The appreciation of the peso this quarter impacted our financial results in a number of ways. Our peso contracts used to hedge approximately 50% of our peso-based operating expenses, had a noncash and realized gain of $8 million, on the remaining contract at quarter end. We also experienced a foreign exchange gain of $3.2 million, consisting of a realized loss of $1.8 million and an unrealized gain of $5 million.

On the peso and expanded dollar denominated account, such as our cash on hand, VAT receivable, prepaids, VAT loans and accounts payables.

Also in Q1, we recognized a noncash deferred tax recovery of $7.4 million, depreciation of the peso, and the Mexican inflation rate increased the size of our tax pools as expressed in U.S. dollars and resulted in a portion of the $50 million deferred tax we expensed in Q4.

With regard to our gold hedges, we have approximately 66,000 ounces of gold hedges remaining at the end of Q1 at $1,241 per ounce, which will be settled in the second quarter this year.

With regard to our peso hedges, the company has approximately MXN 1 billion of peso hedged contracts or about USD 53 million, an average contract price of MXN 18.70 per USD 1. Approximately MXN 684 million will be settled within 1 year and MXN 336 million until December of 2018.

Now turning to CapEx, sustaining CapEx in the first quarter was $12.1 million, similar to Q4. Of that, $8.5 million was for capitalized stripping activities at El Limón and Guajes West. $2.9 million was for equipment and roughly about $700,000 for infrastructure. The remaining $13.5 million of CapEx related to $6.5 million for mobile equipment, the haul trucks and drilling machines that Fred mentioned. $3.2 million for El Limón deep and Sub-Sill tunnel. $1.3 million for the ongoing construction of the SART plant and $2.5 million for the dome and other projects.

With $94 million in cash at the end of this quarter, the mill throughput ramping up and near-term production upside from Sub-Sill, the company's in a strong financial position.

Now I'd like to turn the call back over to Fred.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [5]

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Thank you, Jeff. And in closing, just like to offer our special thanks to all of our teams and partners who have delivered so admirably during our journey from explorer, to developer and now to intermediate producer. I look forward to a successful completion of the last part of the ramp-up and to continue to grow and mature as the gold-mining company of choice for all stakeholders.

The floor will now be turned over to the operator for the question and answer portion of the agenda.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from Rahul Paul with Canaccord Genuity.

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Rahul Paul, Canaccord Genuity Limited, Research Division - Director [2]

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On the -- just a question on the Sub-Sill resource. I know mine planning is ongoing for first production by the end of the year. How much metallurgical testing have you done on the Sub-Sill? And are you expecting any differences that the -- in the metallurgy versus what you're currently putting through the mill?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [3]

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So the metallurgical testing indicated it was about the same. It handled at -- recovered at about the same levels as the El Limón pit stuff, maybe just a little bit below. Even the soluble copper looked to be about the same at 16%. So metallurgically, the issue will be how we manage the copper that is contained in the Sub-Sill ore. And in early days, we'll just manage that by mining the ore with lower copper content. And fortunately, the area around the -- where the ramp is going to enter the ore body has a fairly low copper content. Over time, we'll blend the higher copper content, with the Media Luna ores when that comes online.

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Rahul Paul, Canaccord Genuity Limited, Research Division - Director [4]

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Fair enough, that's helpful. And then looking at the stockpile, I mean you drew that down in 2016. Where do you see that going by the end of the year?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [5]

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So the anticipation from this point forward is that the stockpile will increase and we'd expect to see a -- close to 1 million tonnes before the end of the year.

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Operator [6]

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The next question comes from Dan Rollins with RBC Capital Markets.

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Dan Rollins, RBC Capital Markets, LLC, Research Division - Head of Global Mining Research and Analyst [7]

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Fred, bit of a step-wise change there in throughput between March -- the end of the March quarter in April. I was wondering if you can provide a little bit commentary on what's sort of driving that increase? And then second, how long do you think you'll need, as a team, to stabilize the circuit to be able to achieve 14,000 tonnes a day on a steady-state basis?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [8]

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Dan, it's really been months of effort on the filters to get them to stabilize. The key driver has been, there are 7 machines. There are 150 plates in each machine, and we're having significant issues with plate warpage and when the plates warp, we couldn't seal, which then results in material being ejected from the machines and getting where it shouldn't be and needing to replace and maintenance time. There's been some changes made to the machines, that has helped in terms of sealing around the central ring. Changes in cloth, changes in operating and maintenance procedures and a number of things, across both operating, maintenance and machine design, that have come together to make that happen. So it ramped up, I think it was, I think the chart there was 66% in Q4, 69% in January, 75%, 80% in March and then it ramped up nicely to 7 -- 91% in April. And if we took out the 2 maintenance down days, when we were changing liners in the SAG, it would've been 96% in April. So I think we basically got that beaten and now it's just a matter of getting the -- we dialed back the SAG a little bit to -- so it matched with what the filter plant can do. And now as we change the grades in the SAG, we'll just keep pushing the throughput up through. So I'm hoping this stuff continues through Q2 and we've got it settled down. We're planning on Q3, but Q3 would -- Q2 would be nice. The team's done a nice job of it.

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Dan Rollins, RBC Capital Markets, LLC, Research Division - Head of Global Mining Research and Analyst [9]

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And then just with respect to Media Luna, the change to drilling the "B" stuff. You're from surface using directional drilling versus going underground. Does that change the ultimate time line for the project, when you could get first production?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [10]

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So it's early days yet and Dawsons' just pulling his team together now to do the feasibility study. But what that design does is it takes out a couple of the long leaved items on the design, and it could probably take some of that tunnel that goes underneath the river, which was -- affected the timeline quite significantly, so that could be less. So right now I'm predicting it takes 4 years to -- from basically the time we start drilling to build. But it will take a bit of time once Dawson gets his team together and do the details to actually come out with real numbers.

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Dan Rollins, RBC Capital Markets, LLC, Research Division - Head of Global Mining Research and Analyst [11]

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And then just -- I know you're still very early stages under the Sill, but you've got -- also you've got some pretty solid copper grades in certain areas of deposit, especially as you go deeper. If you continue to have success under the Sill and see more of this copper mineralization appearing, does that sort of change your viewpoint on when to build the floatation circuit for Media Luna? Or do you still look to build it all in 4 years and then just use the additional ore as -- additional ore just for the beast? Or would you bring that early and just say, "We've got a floatation circuit up and running. We can go under the Sill. We don't have to do worry about recoveries and just get into that ore earlier?"

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [12]

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So that's a possibility. It's been considered. So right now, we have to get a sense of the mine plan and how many tonnes a day we can get out of that Sub-Sill, how many working faces we can get. But that's certainly something we will consider.

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Dan Rollins, RBC Capital Markets, LLC, Research Division - Head of Global Mining Research and Analyst [13]

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And how -- just 1 last question for me. How far are you from the second advance that's targeting the El Limon deep's deposit? I know you're 85 meters from under the Sill, but where are you on from -- where are you from that other, sort of high-grade deposit?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [14]

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I don't have the exact number in my head, but it's got to be in the range of -- it's very close to 85, so 100, 120 meters.

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Operator [15]

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Your next question comes from Matthew O'Keefe with Echelon Wealth Partners.

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Matthew Dennis O'Keefe, Echelon Wealth Partners Inc., Research Division - Senior Mining Analyst [16]

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Just a question to follow up on the filter press. I think you did a great job explaining how you've managed the -- how you're managing the issues you've had with it. But when you do get the additional throughput, because it sounds like you'll make the 14,000 tonnes per day on the existing setup. But, what happens when you get the additional filter presses installed at the end of the year? Do you -- will you have -- will you be able to increase throughput higher? Or is that just at that buffer that you need for -- and is that part of your ongoing maintenance schedule?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [17]

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So there's -- what basically happens is the plant is designed with the -- normally if you design a plant, your biggest capital expenditure should be your bottleneck and that was always sort of a mix between the SAG plant -- the grinding circuit and the filters. If we take the filters off the bottleneck path, then it's going to come down to what we can get through the SAG mill. And we haven't really had a chance to let that SAG mill run yet to find out where that sits, but when we get to Media Luna ore it's only 2/3 as hard as El Limón ore, so I would expect that to go through the grinding circuit quite quickly, at which point the additional filtration capacity will be very useful. And we're hoping that we can up the throughput through the process, through the grinding circuit, so that maybe we can add some Sub-Sill ore to it, or we can start to draw down that 1 million tonne stockpile a little bit more aggressively. But it's a little ways away before we can tell that yet, because we haven't really had a chance to let the grinding circuit run.

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Matthew Dennis O'Keefe, Echelon Wealth Partners Inc., Research Division - Senior Mining Analyst [18]

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So first step, remove the bottleneck from the filter press and then take it from there. Great, and then, just 1 other question then regarding the Sub-Sill zone. When you get into that at the end of the month, I mean you'll be doing some -- you're putting -- -- will you be able to put some of that development ore through the mill? And when do you anticipate that would be?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [19]

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Well we could be into that, late in Q2 and I expect that we might make a small pile and then pretty quickly, put that small pile through the mill. High-grade tonnes tend to be fairly attractive.

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Matthew Dennis O'Keefe, Echelon Wealth Partners Inc., Research Division - Senior Mining Analyst [20]

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Yes, I would say so. Okay, so we then -- so we might -- and will we be able to report that? Or will we be able to report that separately in subsequent quarters, how much material will be coming from Sub-Sill?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [21]

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Yes, once we have a -- we're going to finish drilling out the initial part of what -- we're going to infill drill 1 million tonnes of the initial resource. So we should be able to get a reserve out by the end of the year, but we can report what we have put in the mill. Until we have a mine plan, I don't think we can have any forward-looking statements about what we're going to put in the mill.

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Operator [22]

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Your next question comes from Josh Wolfson with Eight Capital.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [23]

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On the reconciliation, where you mentioned a couple more quarters should be enough, would you expect to include that in your 2017 year-end reserve update? Or will it likely be incorporated after that?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [24]

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We don't have a firm answer on that yet, Josh. The reserve update is -- the reserves are estimated at plus-or-minus 15% on -- is sort of how the models are built. Right now, we're running plus-or-minus 5%, so we're well within the current estimate. But if that line flattens out, quite steadily, it's something, certainly, we'll consider once we see what the line does.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [25]

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Okay, and then in terms of how this information gets incorporated within the reserves when it ultimately does and excuse me for simplifying this, is it just a matter of applying the historical realized results as a factor going forward? Or is there some geological sort of interpretation that's overlaid on top of this?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [26]

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So, if it was going to be 1 of the 2, I think it would more likely be the former. We have yet to find a geological tool that allows us to predict the variability. We've done infill drilling much more tightly with our own drill rig. That hasn't changed any of the estimates. So, we don't have anything other than statistics at the moment.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [27]

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Okay, and then just another question on the guidance. Given the fact that the plant is not operating at 14,000 tonnes per day yet and there is positive influence from -- under the Sill material expected before year end, how much sort of -- how much emphasis should we be placing in our numbers for the underlying factors for you to achieve guidance? And I understand the 350,000 to 380,000 ounces is set, but just the underlying factors that you outlined to achieve those net production figures?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [28]

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So when you include the Sub-Sill, I'd ask that you not go above 380,000.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [29]

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All right, I will stay conservative within the bounds, but in terms of just the push-back, at least on guidance, is that the throughput rates aren't being achieved and there's obviously a lot of variability in grades, so should we just effectively ignore the underlying factors and then just put a lot more emphasis on the net production figures?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [30]

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I think we're getting the throughput issue conquered, if you look at the April numbers. I think we figured out the filters. Grades moved around positively and negatively. The first 2 quarters last year were excellent. This one's been pretty good. So I don't think there's enough data there to really do much with. It's in the game. The recoveries will come back up again. We've got the Sub-Sill. We're heading back into the higher grade material in El Limón East -- or sorry, in Guajes East Pit. So there's lots of reasons that we're comfortable with the guidance that we have now.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [31]

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Okay, and then just 1 last question. You mentioned that the under-the-Sill material would be set well before the reserve would be out at year-end. Any sort of more precise timing you have or expectations on when you would start to process that material?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [32]

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I think we'd bleed it in fairly small numbers. It's just sort of -- don't think we need to build a big pile of it and put it through separately. So I would expect that we'll start to bleed that stuff in, late Q2, early Q3.

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Josh Wolfson, Eight Capital, Research Division - VP and Senior Analyst [33]

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Okay, and then now that you gave us that little tidbit, in terms of the small amounts, what sort of throughput rate would you be expecting, let's call it, when it's more stabilized in the third and fourth quarter?

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [34]

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Can't give you that without a mine plan. But we're using drift and fill techniques and right now we're pushing forward about 4 meters a day. It's about 250 tons a day of -- per round at a 4-meter by 4-meter type size. So, it will be some number like that depending on how much we're in ore, and how much we're driving access drifts to get to the ore. So I really can't give you a number, so I don't have a mine plan to back it up.

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Operator [35]

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Your next question comes from [Franz Leblac] with Prudential.

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Unidentified Analyst, [36]

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I had a couple of questions this morning. Can you talk a little bit about the final completion test on the loan facility? And maybe what some of the hurdles are you have to get through to make that date? And what the confidence is that you would hit those deadlines?

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Jeffrey A. Swinoga, Torex Gold Resources Inc - CFO [37]

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Sure, it's Jeff here. It's a 90-day test that has to be completed by March 31, 2018. These completion tests -- it's all on SEDAR, but it's -- they're quite comprehensive. So there's a number of tests in there, with respect to mining, throughput, filtration, cost. So there's a number of aspects to the completion test.

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Unidentified Analyst, [38]

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And given where you are today, do you have -- what's your confidence level that you can meet that by March of '18?

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Jeffrey A. Swinoga, Torex Gold Resources Inc - CFO [39]

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Yes, we plan to achieve completion. That's the plan before that date, yes.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [40]

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Yes, I'd say it's -- we're ramping up there aggressively toward it now, and the bottleneck has been the filters and we'll have that additional filtration capacity late in the year so, if we continue -- like if the filters didn't come up as per plan, the other filters will help us out.

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Unidentified Analyst, [41]

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And then just to remind me again, what you guys are thinking for total CapEx number this year?

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Jeffrey A. Swinoga, Torex Gold Resources Inc - CFO [42]

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It's between $100 million and $130 million.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [43]

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One-half of that's capitalized stripping. Absolutely.

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Operator [44]

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(Operator Instructions) This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Sanchez for any closing remarks.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [45]

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Gabriela?

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Gabriela M. Sanchez, Torex Gold Resources Inc - VP of IR [46]

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Hello, on behalf of the Torex team, thanks everyone for joining us today and have a great day.

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Frederick M. Stanford, Torex Gold Resources Inc - CEO, President and Director [47]

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Thank you.

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Operator [48]

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This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.