Rodrigo Cammarosano: We have another question from Joslyn Jensen. When do you expect to start the leveraging?
Ignacio Rosado: As I was saying, we expect delivering this year. As I said, this is a priority cash flow. We are in good shape in terms of what we can control in our mines and smelters. We are working very hard on production cost and CapEx, but we are exposed to prices, zinc prices did not began the year in a very good pace. So hopefully – and we are confident that they will recover in the following quarter. So with the cash flow that we will start generating, the idea is we start delivering the company.
Rodrigo Cammarosano: We have a question from Rodrigo Murrieta from AFP Integra. Are you evaluating measures to decrease cost of per tonne of raw mat Cerro Lindo going forward?
Jose Carlos del Valle: Yes, Cerro Lindo is a challenge. Cerro Lindo is a big underground mine, probably is one of the largest underground mines in general. Yes, and the cost per tonne of raw mat is $40. And we have to give you an idea in Cerro Lindo as mine development, we have to develop 35 kilometers per year. So – and we have pressures on a given that the mine is extending, we have pressures on all of this. So we have been managing in the last two years to keep these $40 flat. And this has been a challenge. And as I was saying, we have some consolidation of contractors. We have some measures on productivity, reducing of people. We have some measures reducing costs. We have been optimizing our short grid. That is a support of the mine and many, many other measures.
So for us to keep the cost of raw mat – cost per tonne below $40 is a challenge. But we believe that we can achieve that during 2024. 2025 we’ll see, but with the measures we take, the idea is that we keep our cost below $40.
Rodrigo Cammarosano: We have another question. What is the expected CapEx that you are considering for the integration project in Pasco?
Jose Carlos del Valle: Yes. As I said before, between 150 to 200, I already explained what are the components of that. We are still assessing how are we going to finance that? This CapEx is going to be invested in three years. So part of the cash flow generation of Cerro Pasco is going to be allocated to this. And the rest we are assessing, it might be some debt or some other cash flow that we might have from other operations. But still we will communicate that once we go forward.
Rodrigo Cammarosano: Okay. We have another question for Hernán. Can you comment on the alternatives for the Morro Agudo asset?
Ignacio Rosado: Yes. The Morro Agudo asset is a marginal asset for us. It’s a very small asset. And this is not transformational, has a low life of mine, so I cannot comment on specific actions. But what I can tell is that we are assessing in detail what are our options in Morro Agudo. We have provide a guidance for production for 2024, but not for 2025 and 2026, because as I said, this is a marginal asset and we are assessing the options. As soon as we have some clarity on that, we will come back to the market and communicate what are the next steps on this asset.
Rodrigo Cammarosano: There are no more questions in the queue. This concludes our question-and-answer session. We will now hand the call over to Ignacio his final remarks. Mr. Rosado. please go ahead
Ignacio Rosado: Thank you. Thank you everyone for attending. This has been – 2023 has been a very challenging year. As I was saying, Aripuanã, the delay on Aripuanã, a consumer a lot of cash flow. Prices have not been there. As I said, we believe that we are in the bottom of the cycle and we are confident that this year is going to be better. The evolution of Aripuanã and all the measures that we have taken will help us generating cash flow for this year. We are committed to that. We are committed on our cash discipline and making sure that Aripuanã is up and running. We are hoping that we approve soon the integration project of Cerro Pasco. This is important for the company because it will unlock a lot of value, more life of mine, for sure, because of all these resources that are in the underground part, but also more profitability, given the economies of the scale of the two assets.
So we are committed to that. We are committed to all these measures, and we thank you for the time and we look forward to speak to you at the end of April with our first quarter results. Thank you very much and have a good day.
Operator: Conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
