Thank you Brad and good morning ladies and gentlemen. Thank you for dialing in to our second quarter 2012 conference call. We are very pleased to report that another strong quarter puts us on track for our best year ever.
Solid performance from our portfolio of mines combined with a reduction in concentrate produce, but not yet delivered has resulted in record silver sales and revenues for the second quarter in a row.
Operating cash flow has also reached a record high and yesterday we announced our third quarterly dividend for 2012 which increased to $0.10 per share due to the increased cash flows.
As announced earlier in this week, the addition of two new streams from HudBay Minerals subsequent to the quarter will build on our already industry leading growth profile. The first stream is the precious metal stream with both gold and silver from HudBay currently producing flagship mine, the 777.
The second stream is a silver stream under a key growth project Constancia down in Peru. Similar to all of our agreements, this transaction once again highlights the effectiveness of our business model, which provides healthy capital to our operating partners while combining the certainty of fixed capital and operating costs with production from high quality mines that offer exciting upside potential.
These new HudBay streams deliver immediate cash flow with 777 contributing average annual production of approximately 4.2 million silver equivalent ounces until the end of 2016.
Our 2012 production guidance has been increased from 27 million to 28 million silver equipment ounces. Once Constancia reaches full operations, silver equivalent production levels from these two assets will increase to about 4.9 million silver equivalent ounces resulting in 2016 production guidance of 48 million ounces, a 90% increase over our 2011 production levels.
And importantly, we’ve added these assets in to our portfolio by using existing cash on hand allowing us to maintain our exceptionally strong balance sheet and to continue to pursue even further and to continue to pursue even further growth to new value enhancing acquisitions.