2024 Q1 Highlights...1) Development of the open pit and underground is slightly behind schedule at the Goose Project; first gold production now expected in Q2 2025
2) Note 14 Gold stream obligation: The Company's gold stream obligation requires the delivery from production at the Company's Back River Project as follows:
• 2.7805% of gold production up to delivery of 87,100 ounces,
• 1.4405% of gold production up to an aggregate of 134,000 ounces, and
• 1.005% of gold production thereafter. The Company has guaranteed the gold stream obligation.
3) Note 15 Prepaid gold sales On January 23, 2024, the Company entered into a series of prepaid gold sales with a number of its RCF syndicate banks. Under the terms of the prepaid gold sales, the Company received an upfront payment of $500 million, based on gold forward curve prices averaging approximately $2,191 per ounce, in exchange for equal monthly deliveries of gold from July 2025 to June 2026 totaling 264,768 ounces. Gold deliveries can be from production from any of the Company’s operating mines and the prepaid gold sales can be settled prior to maturity through accelerated delivery of the remaining deliverable gold ounces. The prepaid gold sales have been accounted in accordance with IFRS 15, Revenue from Contracts with Customers, whereby the cash prepayments have been recognized as deferred revenue on the consolidated balance sheets and will be recognized as revenue in the consolidated statement of operations based on the contract price when gold deliveries are made (meaning the $1,888 per gold ounce revenue will be recorded between July 2025 to June 2026 - the impact of this costly prepayment is deferred for more than a year ). During the three months ended March 31, 2024, the Company recognized interest charge of $8 million relating to the financing component contained in the prepaid gold sales. Of the $8 million interest expense, $3 million was capitalized to the cost of constructing qualifying assets during the period and the remaining $5 million was expensed in the Condensed Consolidated Interim Statement of Operations. At March 31, 2024, the carrying amount of the prepaid gold sales was $508 million.