Q – Don DeMarco: Okay. Thanks, Steve for that — Colorado. And then final question, just company-wide cost directionally heading into the Q4 last quarter of the year. Are you expecting, an improvement versus Q3.
Steve Busby: Yes. From an operations standpoint, when we look at all the operations I’d say, we’re seeing pluses and minuses and they seem to be balancing out. So I think Q3, is probably a reasonable projection for the operations side.
Michael Steinmann: Yes. I mean really a lot depends on when we see a higher oil price again, it’s coming up again a bit. Always a big impact to our operations, not only the cost obviously of diesel, but translating in higher cost across the board. That is definitely some more pressure on some inflation, but then there’s some other costs that also coming off — so — but that just speaks up probably pluses and minuses here for next quarter.
Q – Don DeMarco: Okay. Thank you again Good luck for the rest of the year. That’s all for me.
Steve Busby: Thank you.
Operator: Your next question comes from the line of Craig Hutchison from TD Securities. Your line is now open
Q – Craig Hutchison: Hi, guys. Good morning. Thanks for taking my question. Just on La Colorada as follow-up question. On the throughput, should we assume the throughputs that we saw in Q3, are representative of the throughput we can expect until sort of mid next year in term of ventilation is all of the running?
Steve Busby: Yes. Thanks, Craig. Steve, here. The simple answer is, yes I think that’s, correct. I mean we are focused on advancing development rates, which will generate a bit more ore. We brought additional contractor on, we are getting a little bit some of the areas with a little bit more error. So I think you’ll see some marginal improvement, in overall tonnage. But yes, once again, until that shaft comes on we won’t see a material change in throughput.
Michael Steinmann: Just a way in there and I think Steve talked about there. We expect to finalize the escalation of the shaft like later in…
Steve Busby: We’re on track to finishing the excavation by year-end, and then we’ll be installing the big ducting systems and the big fans or 2,000 horsepower fans each, that we’ll be putting on the surface and commissioning by midyear next year.
Michael Steinmann: Right. So all on time, and as we indicated already like I think a couple of quarters ago.
Steve Busby: And on budget as well.
Q – Craig Hutchison: Okay. And maybe just a question, with the Cerro Moro or maybe the EMAS [ph] in general. The lack of drilling density that impacted the grades — expected grades for El Penon, is that a concern at some of the other operations like Cerro Moro? Or do you have more confidence in terms of the drilling work that’s been done to date and the grade profile there?
Unidentified Company Representative : Yes. Craig, it’s Chris here. Certainly when we look at El Penon, and we look at the spacing of the 60 by 60 and going down at 30 by 30 meters for that initial gridding and drilling when we look at Cerro Moro certainly, see a higher ratio of drilling. And certainly the ore shoes have behaved more consistently. Even though very within the major structure of Escondida and Zoe [ph]. So no we certainly don’t have that feeling in Cerro Moro. And really as Mike mentioned, the increase in El Penon drilling up to 10,000 meters on a monthly basis, we’re certainly trying to catch up with some losses at the beginning the year due to a change in contractors, which was completed in January this year before we got on to site. So certainly, we see that we’re going to be catching up there.
Steve Busby : And if I can add Craig, I will say reinforce that Jacobina absolutely no concern. We’re seeing really good order zones there and good continuity. And even Florida to that matter we’re seeing — we need to get drilling out a hedge just to get some more tons into the reserve category. But that one is looking really good too to just share what Chris was talking about.
Michael Steinmann: And just to mention, I mean, El Penon, we see some nice upside in the exploration sort of more blue space up. So certainly something we’ll be concentrating on in 2024.
Craig Hutchison : Okay. Great to hear. And maybe one last question for me. Just La Arena, the sustaining CapEx is tracking well below guidance I think some of that has to do with the lack of development of the leach pad construction some dump work preparation. But is that something that’s going to impact production next year or something you guys need to catch up on?
Steve Busby : Yes. Hi, Craig, it’s Steve again. The main driver there is this pre-strip capital and it’s the way we account for pre-stripping of the open pit. And what’s happened is a big chunk of that got shifted to operating costs this quarter and probably we’ll see that in Q4 as well. So I think ACOs were solid. It’s just where we distribute that pre-strip whether it’s capital or expenses. There are some dollars as you alluded to being pushed out into 2024 for Pad V expansion. And it’s — we’re working through that. Right now we seem to be on schedule to where it won’t disrupt production, but we’re definitely — it’s one of our key focus areas.
Craig Hutchison : Okay. Thanks guys.
Steve Busby : Thank you.
Operator: Our next question comes from the line of John Tumazos from Very Independent Research. Your line is now open.
John Tumazos : Thank you very much for taking my question. Concerning new projects in general and the Colorado Skarn in particular, do you have a minimum hurdle rate threshold rate of return? Or do you revise on some qualitative and things like exploration potential size synergies with the next mine store, et cetera. Tell us how the Board approval eventually of the La Colorado Skarn project will go in the context of your approval process.
Michael Steinmann : Sure. And just there’s no board approval at this point. We’re obviously on a kind of a late-stage exploration phase here with La Colorada Skarn, and as I said will come out with our study at the end of the year that will give us much more information and to the shareholders how big — well we already know it. So it’s a very large discovery and how we think mining could look like over a very long time. When you look at the hurdle rates you mentioned a few things that play in this. There’s a lot of factors that of course play into this. Long-term metal prices have a very, very big impact to that calculation. So you — especially in a project like the Skarn that goes over a very, very long time there’s obviously some impact — a big, big impact on the capital number upfront and the big impact on the metal price you are using your model for later on.
