Jorge Alberto Ganoza: We did a thorough assessment of the power availability, stability of the grid when making the construction decision for Séguéla and the assessment was that there was ample power generation capacity and the grid was stable. And then this accident happens, right. So, we are sourcing a longer term solution for us, which is a full backup for the entire operation. We expect we can have that – get those power generators, diesel generators on site by July. So, even if this problem drags on with national grid, we should be autonomous by July. So, that’s why we say that – and that we can control. So, we are bringing the problem into our hands rather than relying on something that’s out of our control.
Don DeMarco: Okay. Thanks for all that. Congratulations on again a strong start to the year and good luck with Q2.
Jorge Alberto Ganoza: Thank you.
Operator: Thank you. Our next question is coming from Eric Winmill with Scotiabank. Your line is live.
Eric Winmill: Great. Thank you. Hi Jorge and team, firstly, taking my question. On Argentina, we are seeing some positive headlines there after the election. Any comments about what you are seeing on the ground? And does this change your view in terms of deploying more CapEx within Argentina? Thanks.
Jorge Alberto Ganoza: I think as Cesar pointed out, we are seeing positive signs all across. But I think there are two important things that we look at here, Eric, that I think the positive signs we are seeing are building up to one, liberating exchange controls, FX controls. I think what we are seeing is a lot of positive steps from these government towards that. And the second one that relates to this is country risk, right. Having lenders, looking at Argentina, as place to where they will take collateral, right. They will lend money to Argentina and Argentinian capital projects. So, we are seeing a lot of positive messages followed by positive actions. Country risk has come down from 2,400 points to around 1,200 points. To give you a sense, the average for Latin American country risk is around 400, right.
So, there is still a long way to go in terms of the country risk perception. But it’s trending in the right direction. We are hearing the right messages from government followed by the right actions. But with respect to our view on investment on new large capital projects, greenfield projects, I think we are still on a watch-and-see mode, yes.
Eric Winmill: Alright. Thank you. I appreciate that. That’s very helpful. Maybe just one more for me on the financial side, obviously, you did see some working capital payments in the quarter. Any sort of view here in terms of an optimal level? Should we expect additional working capital payments throughout the balance of this year?
Jorge Alberto Ganoza: Capital payment, you mean debt?
Eric Winmill: Yes.
Jorge Alberto Ganoza: Yes. We – I mean we intend to continue using our liquidity over the next few quarters to pay down bank debt. The pace at which we do it will be a function of what we decided to do with the convertibles, which is due around October of this year and any other competing uses of cash. But overall, the pace we have seen so far is what we expect to maintain over the next few quarters.
Eric Winmill: Okay. Great. It’s helpful. Appreciate that. And I will hop back in the queue.
Jorge Alberto Ganoza: Thank you.
Operator: [Operator Instructions] We have a question on the line from Tony Christ with Odyssey Investments. Your line is live.
Tony Christ: Thank you. Thank you for taking my question. I want to congratulate you, first of all, your team for a great quarter, and we are looking forward to the future. I wanted to know any color you could give additional comments on your African mines and what your hopes are over the next year, realistic hopes for the mine. Is it at a level now that should be consistent this year? Are there chances it could increase? Any comment, any more color you could give on it. Thank you so much and again, congratulations.
Jorge Alberto Ganoza: Thank you, sir. With respect to our African operations, I can stress that we see short-term opportunities at Séguéla. As stated during the call, we are in a position to run our mill and mine at approximately 25% above the throughput rate that we budgeted in 2024. And that is an outcome of the good work done by the site team on debottlenecking and squeezing the lemon, if you will. On the facility and adequating the mine plans to source or that rate. So, that is low-hanging fruit that we can capture throughout the year. Now, a bit more longer term, we continue enjoying exploration success at Séguéla. I cannot stress that enough, as we are able to not only replace what we deplete but expand beyond that.
We can also consider opportunities for further expansions. And at Yaramoko, in Burkina Faso, the team – the mine is operating at a steady rate. But the team continues to capture opportunities on expansion of the resources. And as I said during the call, we continue to see opportunities on the fringes of the deposit on 755, on the deeper portion of the mine. And as we extend our underground infrastructure or drifts at the deep end of 755, we continue to find its structure with grade, which leads us to think that we have an opportunity to continue ameliorating the rate of depletion at the mine and supporting the loan, right. So, those are the big ones. And of course, the Diamba Sud in Séguéla, which is a big lever for medium-, long-term growth in the company, we are exploring there.
