Q4 2019 Earnings Call
Okay.
Uh huh.
[music].
Good morning, My name is Joanna and I will be a coffee separately in the today.
At this time I would like to welcome everyone to that took place Televisa versus Q4, 2019 financial results and we view of operations [laughter] all lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question answer session.
If he would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
Thank you Mr. want to tell you may begin your conference.
Thank you Joanna good morning, I'm wrong at del <unk> head of Investor Relations Communications welcome to our fourth quarter and year end 2019 financial results Conference call on Friday, We released our fourth quarter and year end 2019 results press release Mdna financial statements. These items are available on our web site.
With me on the call our old qualifying our CEO loop Colton, our CFO and Joanne badly our COO. This call and presentation includes certain forward looking statements and information we refer you to the forward looking statements section of the annual information form dated March 18th Twentytwenty supplemented by our Mdna.
12 months ended December 31st 2019, and now I'd like to turn the call over to a chief Executive Officer both quoted.
Thank you ROI and good morning to everyone. Thank you for joining us for our fourth quarter and year end 2019 financial earnings call.
First I'd like to acknowledge the extraordinary situation, we're all finding ourselves in caused by the spread of the Corona virus epidemic I know we have people dialing in from various parts of Canada and of course to other parts of the world.
Thank you your families and those into your community as a healthy safe and our managing the circumstances as best you can.
We are living at what feels like truly unprecedented times impacting both personal lives and our business.
More to say on the corporate 19 later in this presentation and I suspect that the effects of corporate 19 will be with us for a while prompting us to provide you with a series of updates and what is a rapidly evolving global situation.
Let's start with though we will provide you with an update on our fourth quarter and full year 2019 operational and financial results, which we released on Friday last week after markets closed.
As well as an update on other key drivers of the business.
2019 was a year characterized by both notable achievements and challenges are open pit operations posted another year exceeding guidance, while our underground development team continued to achieve significant milestones as we made progress towards completing the underground and ramping up towards.
First estimated levels production.
Operationally the fourth quarter of 2019 contributed to another strong year over year told was open pit operations from a production cost and safety perspective.
Full year copper production of 146346 tonnes was in line with our original guidance on our full year gold production of 241840 ounces was materially better than the original guidance.
This increase gold production has had a positive impact on our costs for 2019, seaborne cash costs and all in sustaining costs reporting at $1.37 and $2, an eight cents per pound of copper produced respectively.
As you will know safety is our number one priority and it's also critical to our continued success.
Oyu Tolgoi is all infrequent all in.
Injury frequency rate of 0.16 is the best in class amongst our peer group and reflects the safety first commitment that is embedded in or your total gross culture.
Turning to the underground development.
We continue to work on a new mine design and anticipate its completion during the first half of 2020.
With the definitive estimate which will include the estimate of cost and show for the underground project based on updated design still expected to be delivered in the second half of this year.
A critical piece of the infrastructure that accelerates the underground development shop to was completed in October 2019.
And has enabled the team to increase our productivity levels and begin the movement of underground development material to surface.
Looking forward to 2020 production guidance.
Although the midpoint copper production range guidance is higher than 2019 were also forecasting lower year over year gold production.
This is due to the need to mine through lower grade material on the periphery of the southwest pit as pays for PE sinks towards the highest gold and copper grades in the bottom of the pit.
It is therefore anticipated that accessing the higher grade Hall will result in a significant increase in gold production in 2021.
Finally, as at the end of 2019, Turquoise Hill had $2.2 billion available liquidity, which we currently expect to fund our operations and underground development into the second quarter of 2021.
Let's now provide a brief production summary of the results. We previously reported in mid January.
Breaking down our operating performance in the fourth quarter of 2019.
Open pits produced 32905 tons of copper.
And 24345 ounces of gold receive on cash costs of two launched 21 pounds of copper.
Both copper and gold production were lower compared to the fourth quarter of 2018 due to decreased head grade.
And by the transition from the higher grade phases for a and six eight to lower grade phases for will be six b and stockpiles.
Mill throughput during the fourth quarter was a very strong hundred 20000 tons per day versus the nameplate capacity of 100000 tonnes a day.
Turning to our full year 2019 production numbers on slide six.
As stated in the introduction of the combined approximately 146000 tons of copper and approximately 200 242000 ounces of gold exceeded our initial 2019 guidance.
Our open pit team.
He has done an excellent job of maximizing the mill throughput and beating expectations, while achieving record safety levels.
Our full year 2019, seaborne cash costs off a total of 37 per pound of copper produced reflect the stronger than forecast for production.
On slide seven you will see the strong continuation of our safety record.
Both the open pit operations and the underground development delivered another very strong safety performance you all injury frequency rate of 0.16 for 2019 is best in class amongst our peer group and reflects the safety first commitment that is embedded at the or you're talking a culture through every aspect of.
The business it can't be done safely it will not be done.
A key milestone towards the progression of the underground development was the completion of shop to in October last year.
Opt to use is the world's largest production hoist motor that can carry 300 work us down 1.3 kilometers in two and a half minutes of 36 kilometers analysis.
The production voice is equally as impressive with the capability to poisoning 60 tons skips at 59 kilometers per hour.
Chuck to was completed with predominantly Mongolian workforce of two and a half thousand people and it took approximately 2.6 million ounce to complete.
And it has allowed our team to accelerate the underground development as we move into 2020.
Our team achieved a new record of.
1809 equivalent meters of lateral development in December.
And we're now lifting underground development material to surface fire the sharp to Productionized.
We are proud to have completed shop, too, which is considered to be one of the most complex binding shopped ever undertaken and we look forward to reaping the benefits of this in 2020.
Primary crusher, one civil works are ongoing and the team has successfully port the six level of pressure wall and installed steel for preparation of course center.
All of this is of course subject to any potential impact of corporate 19 related delays, which will come back to later.
Detailed analysis work on the mine design is still anticipated to be completed during the first half of this year.
And the definitive estimates, which will include the estimate of cost and shekel for the underground based on the updated designed a pound zero is still expected to be delivered in the second half of 2020.
Slide nine provides an overview of some of the critical infrastructure that we've completed to date.
We won't go through each component books with just like to reiterate that all of the infrastructure completed to date.
Is not affected by any changes to our mine design.
Let me now turn the call over to Joanne Dudley, our Chief operating Officer, who will provide you with an update on our work to finalize the new mine design Joanne.
Thanks.
However, the body play your 10-K slide 10.
You will recall from our third quarter apply it weve guided the market to expected nemanja gone into half of Twentytwenty.
And we'll continue to best net in second half Twentytwenty.
As of today, we blazei timelines and still applicable and look forward to providing the market mix price a clarity on the underground development to the Helga in line.
I'd postino, we'd like to an important step toward completing the bottom line design, including compensation on the inclusion of will need access to drive I take several mainly.
You mean like stability really impacting feature production.
On the design consideration, including all Pos like Haitian panel sequel launch.
Long development productivity input and the detailed on footprint dishonest the underground mine after pricing.
The design and location of all the Alba MYGA infrastructure, such as job and chronic crescent are unchanged strewn capability study.
The design changes our pipeline of on the panels near our mining area, which is the highest pipeline holiday underground undermined our priority targets.
Hi, estimates continue to indicate a sustainable first production could be delight plastic same to 30 month. The page with the Q1 2021 is less in the regional capability steady guidance in 2016.
And the development capital spend for the project My increased by 1.2 to 1.9 billion at 5.3 billion plate previously declines.
Our new President of work is underway to optimize performance.
While technical review is ongoing to God upon input into an updated data tabs cost estimates.
North of one development.
Recent public including a need access to occupation indicates that the shape to delight reminds within this exchange save money shrines bodies changing wise in the lower end.
Mine design considerations, including the consequential impact phone call.
Hey, Joe and other key variables such as noted last.
Project ramp up profile and takes production.
Again, weve improvement seen underground and updates of our productivity assumptions.
An update on the development capital essential cannot be completed until these decisions they finalized.
The corresponding Prefeasibility study panel very design upping days, how to feasibility study planted in shade, Joel and costed to form the definitive estimates and as you in the second half of 2020.
In the interim we'll continue to focus on minimizing the impact to the project schedule and call.
As we were extremely detailed analysis and tasting of each month on modification.
In addition to working closely with regard to tie Turquoise Hill is engaged independent third party consultants to provide the company in solid and technical support is planning an estimate prices currently underway.
I'll be available crush question, but in the main Tom or would you like to continue.
Thank you John let me turn to slide 11.
Our partnership and cooperation with the government of Mongolia continues to move forward on a few fronts.
Regarding the future power supply for the or your Tolgoi mine.
Mortgage broker has submitted a feasibility study to the government of from Golia that is based on a 300 megawatt coal fired power plant to be located in the top and Tolgoi coal mining districts.
Amongst the other options that are being studied renewables are also one alternative assets being looked at and we will continue to work with the key stakeholders to ultimately decide on a power solution that provides long term reliable domestically sourced competitive power for your target.
In regards to the outstanding tax assessments and as communicated previously for your Tolga has initiated formal international arbitration proceedings.
And in doing so we believe that both or your Togo as well as the Mongolian authorities are able to take advantage of the findings of an independent third party as part of a pre agreed and pre determined resolution process.
In relation to the parliamentary working group a final report have been submitted to the economic standing Committee and based on this report a resolution was dropped it and put forward to the Parliament of Mongolia SAP resolution was passed during a plenary session on November 21st lost.
Yeah.
We believe that that resolution reflects a commitment to work together to further support the development of the underground mine.
And it will serve as the basis of future discussions between the government of from Gonia, We are tinto and turquoise Hill resources in relation to or your takeaway.
Let me now turn the call over to our Chief Financial Officer, Leukoscan to speak about the Companys financial performance, both for the fourth quarter and for the full year 2019.
Okay.
Thanks, all and Hello to everyone on the call I do hope, you're safe and well.
If I could get you to please turn to slide 12.
Give you a summary of our key financial metrics for 2019.
Focusing on the full year results revenue in 2019 was $1.2 billion.
As a decrease of 1% compared to 2018.
This is primarily due to a 9% decrease in copper Avenue.
Which in turn was driven by 8% decrease in copper production.
Our reflect the transition from mining base for a to lower grade phase for B or end stockpiles.
This was partially offset by the higher gold revenue and Thats driven by a 10% increase in average annual gold price in 2018 to 2019.
Net cash used in operating activities was 11.7 billion in 2019.
That compares with net cash generated over 180 million in 2018.
Cash generated from operating activities before interest and tax was 341.7 million in 2019.
And that compares to 363 million in 2018.
Primarily reflecting the impact of lower sales revenue and I'd say from unfavorable movements in working capital.
Otcs see whitehouse costs in 2019 were one dollar and 37 cents per pound copper produced.
The decrease from one dollar and 59 cents in 2018.
Both of these are presented at the end of revenue from gold and silver silver sales.
All in sustaining costs in 2019 were $2 in eight cents per pound of copper produced compared with $2 in 20 cents per pound.
A proper produced in 2018.
The reason for the decrease in both metrics was mainly due to the impact of the higher gold and silver credits to run by the 22% increase in gold sales revenue from 2018.
It's also led to the 2019 see one cash costs coming in under the guidance range of $1.50 cents to $1.70 cents per pound of copper produced.
Total capital expenditure was 1.3 billion in 2019 that consistent with 2018.
And it includes 1.2 billion underground development capital, which was in line with our 28 19 guidance range.
Since the first of January 2016, the total amount spent on underground development is approximately 3.5 billion.
In addition, OTI had where their capital commitments of point 8 billion outlook. The 30 course of December 2019.
Tagrisso Hills liquidity balance at the end of 2019 was 2.2 billion, including $1.7 billion of cash and cash equivalents and a half a billion of undrawn bonds under the project finance facility.
The decrease of 1.3 billion during 2019 was due to additional drawdowns of project finance funds.
Three advance to OTI to fund the underground development activities during the year.
Turning to slide 13, which provides some additional detail for the movement in C. One cash costs from 2018 to 29 team.
I previously mentioned the decrease from a dollar in 59 cents to one dollar and 37 cents per pound of top of produced was mainly due to the higher gold and silver credits in 2019 versus 2018.
In addition, there were lower freight and royalty costs, driven by lower volumes of concentrate sold and lower sales revenue respectively.
These benefits were marginally offset by the downward impact of lower copper production on direct costs.
Turning to slide 14 now.
Great sales liquidity balance at the end of 2019 was 2.2 billion with 1.7 billion in cash and cash equivalents and a half a billion that remaining project finance proceeds.
In addition, we expect to generate free cash flow at our existing open pit operations outside that subject to the impact of co that 19, and this will also be available to help fund the underground developments.
We currently expect to how strong liquidity to fund operations in underground developments, including progression of the Calvin Tolgoi based power plants into Q2 of 2021.
As a result of the incremental underground Capex and further scheduling delay announced in July we looked in we will require significant incremental financing beyond this timeframe.
Completion of the mine optimization and definitive estimate will provide greater clarity on the amounts for additional funding required.
As has been previously noted there than options raise additional external financing subject to required approvals to assist in funding development going forward.
Including underground commissioning and ramp up.
However, there are important variables that could impact the of the ultimate amounts of additional financing required.
Variables include the amount of it.
Incremental underground development and power capital required.
I mean of sustainable first production and its resulting cash flows.
Ongoing debt service costs.
King of project Finance principal repayments and the amounts of cash flow that can be generated from our operating activities that have sustaining capital requirements.
In addition, the potential impact of told that 19 on OTI is open to operations and underground development has to be considered and helpful addressed this in more detail momentarily.
Current estimates indicate the incremental funding requirement over and above the 2.2 billion and liquidity currently available is at least $4.5 billion.
Turquoise Hill as well progressed in discussions with Rio Tinto regarding as proposal for sourcing incremental interim funding to ensure the company's some progress the underground development over and above its 2.2 billion of available liquidity.
That's it was that's it for me.
I'm available for questions shortly before that I'll now hand back to all.
Thank you Luke.
So at this point of the call I would usually look to summarize our accomplishments and highlight the investment opportunity at hand, and I will do so shortly.
However in light of the impacts of the core with 19 borrowers that it is having both on the health of our employees contractors, our customers are supplies and their families.
As well as on business of course.
Let me take a moment and address this issue.
The first thing to salesman Goliat has taken some very strong measures to contain the virus very early on as a result, there only 10 confirmed cases in Mongolia as per the latest information available.
That is a remarkable achievement and we would like to acknowledge and congratulate them Angolan authorities are being at the forefront of combating this global condemning.
The same time or your tell you. When you talk on has also taken a whole range of precautionary measures to protect and safeguard the health records workforce.
As well as to keep the business going.
At the mine site itself the Oyu Tolgoi business resilience team is meeting on a daily basis and is taking a considered and risk based approach to managing on our response and actions for the prevention of corporate 19.
As Canada for a range of broader measures, we have temperature and health screenings in place and the dedicated hotline for employees, who are on or off site to call in for advice or information sharing.
Well, you're told there has been cooperating and collaborating with the various ongoing authorities to mitigate the impact of the pandemic.
There are no cases of corporate 19 at Oyu Tolgoi.
The open pit operations have been able to continue to operate.
We've been able to continue to explore concentrate across the border.
We've also been able to receive inbound materials such as consumer books.
So thats very positive and testament to the diligence and Briger both of the Oyu Tolgoi team as well as the local authorities.
Where we are starting to see impacts.
It's largely in areas that require either technical subject matter expertise.
Or supervisory functionality that requires international experts.
With the current travel restrictions in place, we're not able to bring in X petritsch were required for certain services.
The impact here is likely to be felt more in various aspects of the underground development than in the actual open pit operations.
To that end, we use for the is working with the authorities to investigate alternative arrangements that would be designed to help mitigate material impacts on the business.
We've given an update on the situation earlier last week.
And we will continue to do so once we have more clarity and visibility on any impacts that could be material.
At this stage, we are focused on identifying the activities that are unlikely to be affected and putting in place mitigation measures, we possibly can.
Clearly it is in crisis times like these.
Where it becomes very visible how will your tolga is benefiting for example from its very well trained and relatively high proportion local Mongolia nationals as part of its workforce.
When you talk is also assisting the government or from Golia with the battle against corporate 19, which account for example, you towards the has donated a 100 million two groups to the government.
Through the or you toward more sponsored where you'd development support fund. We further committed to 200 million took looks to the on the movie Emergency Committee and a further 10 million took looks to the Handbook Emergency Commission for prevention support.
And we're also sharing our prevention and hygiene controls, we which we have in place with local companies as they prepare to resume their operations and border crossings.
And finally, the management team of Turquoise Hill is closely monitoring the impact of the cobot 19 bars on the business and the operations and we will continue to update the market as and when appropriate.
So now wrap up our prepared remarks.
What are your Togo remains an outstanding business as no doubt about that.
Operational performance the safety track records are second to none and speak for themselves.
We face a big challenge last year, when we have to recognize the increase in costs and shed youll can lay of the underground development.
It was clearly a setback and it has been disappointing.
Since then bill the team has worked incredibly hard to progress the key milestone activities and the items that are on the critical path.
And your line is touched on some of that in her remarks.
The dialogue with the government of Mongolia, as constructive even though we recognize there's a fair bit of work to do.
Whether it is in relation to progressing the power discussions or to close down the outstanding issues.
The parliamentary working group solution.
The financing discussions that are designed to give us more time to flexibility.
Also constructive and progressing.
Yes, absolutely aware and Cook cognizant of the fact that we need to raise substantial amounts of long term financing next year and that is what we're laying the fund our foundation for now.
And finally, we are facing the challenges associated with cobot 19.
And on that I hope, we've been able to give you a little more than just a flavor for our preparedness rigor and our sense of urgency.
Everyone is absolutely focused on protecting the health of our workforce.
As well as preserving the resilience of the business.
The weeks or months to come will inevitably continue to be challenging.
But we are prepared and we are ready.
And with that let me now turn the call back to our operator for any question to land back to you. Please.
Thank you.
Ladies and gentlemen, and we will now begin the question and answer session.
Should you have a question. Please press the star followed by the one on your Touchtone phone you will hear like to Tom prompt acknowledging everquest.
If you isolate speakerphone, please flip the handset before passing any key.
And your first question comes from Dalton Bravado of Canaccord. Please go ahead.
Hi, Good morning, guys and I apologize for any screaming kids here in the background here.
First of all thank you very much for the incremental disclosure on a number of different fronts. Here. My first question as regards to be up $4.5 billion funding gap that you are you currently estimate.
Can you tell us blood copper and gold prices that assumes and what that number would be like at current spot prices.
North and things for the question and like you were all we're calling in from different places so I'm going to act a little bit like the Moscow ceremony here.
Luke maybe is not a question that you would like to take on.
Sure all yes, I'm happy to do that and thank you for the question.
So I think the first sort of important thing to understand is that we're still at this stage and.
Our.
Deliberations in relation to the mine the mine design and the definitive estimate where we don't yet have that final mine design, which is meant to happen in Q2, and we don't yet have the definitive estimates.
That is meant to be delivered in the second half of the year.
So in terms of the variables that we use when monitoring in assessing the funding gap, we actually look at it under a variety of different key assumptions and a variety of different pricing scenarios.
And that's all about kind of factored into the disclosure that you're now seeing in our Mdna in which we've discussed about on this earnings call.
The the incremental funding requirement should be at least $4.5 billion.
Sure I mean, I understand that but you know 4.5 billion is a pretty specific number and I'm. Just wondering there must be a copper and gold price assumption that goes into that and I'm. Just wondering how that number changes depending on what you assumed and where we're at today.
Yes.
Yeah, no and listen I can I can certainly appreciates your desire to get a bit more specificity there.
We're not normally in the habit of giving a lot of details around the sort of.
Internal sort of prices that we assume but I think in this particular scenario.
What I am able to say as that listen we've looked at it we've looked at it under oath many different pricing scenarios.
You know and from that perspective.
We're comfortable with the disclosure that we have put out there that the amounts at least $4.5 billion I mean, we are obviously.
None of the recent impacts of Tonight co. Good 19, and what that has done to the copper price and obviously, we'll continue to monitor the situation will continue to monitor the situation for that not only for that but also for.
The additional information that we hope to have later in Q2. Once we have that final mine design and then of course will further refinements as we get closer and were able to deliver that definitive estimate in the second half of the year.
Okay, maybe I'll leave that one there then just so just switching gears as a follow up on page 21 of your on DNA, There's the amortization schedule for the project finance facility and it looks like it's changed I am I reading that right is that a function of kind of discussions you've had with a lenders.
And if so is at the end of it or could we see further our changes that amortization schedule.
Yeah, so the discussion.
As you can appreciate we are still.
Looking at odds you know various options in terms of meeting that incremental funding requirement that starts.
Kind of in Q2, 2021, and we're very very aware of the situation in relation to being in a position to have that incremental liquidity and have that additional timing that we that additional time that we need to make sure. We can continue to find the business and that of course.
One of the reasons why were in discussions with Rio Tinto and those discussions are actually progressing very well in relation to an inter interim funding facility that will give us that hopefully give us out additional liquidity and additional time that we need.
And there are a lot of different variables that go into the sort of consideration around what that incremental funding requirement might be.
You're absolutely right that the amount of T offs principal repayments is a key factor that goes into that.
That that that goes into that consideration of what that incremental funding got might be we have updated that table in the mdna. This is actually the first time that we've included those those principal repayments in that table of the M. DNA.
They arent based on any sort of re profiling of the debt discussions that we've had with lenders to date.
So we're not in a position yet to have had that that particular discussion with the lenders. Although we are hopeful we will be able to do that at the appropriate time.
Okay. That's great. That's all from you guys. Thank you.
Thank you.
Thank you. The next question comes from Ralph PECVD up capital. Please go ahead.
Either and good morning, everyone.
I have two questions firstly I've been thinking about this mid access drift for panels zero and.
I'm wondering what's once it comes into production.
What is the most important risks that are being factored into the design I'm trying to get a sense of.
The mining risks, which are separate from the unknown cost and schedule risks.
Okay, yes, given our okay. Thanks, Rob It also John but maybe one for you to address.
And.
Yes, maybe try and do it in a way [laughter] that is the answer is around questions without taking us off into too much detail there.
Right.
Yes.
Thank you.
Yes, I certainly coach with that question, you know tanker been need access to drive decision.
What do you indicate seen in as some of what we've already talked to that way you know the grand condition in panel there I have opened since the feasibility study and we are responding by changing the design in sequence to minimize the race.
Okay.
Recovery of with the and production rise and size when needing to take out the long tenths each of them on.
You know that speaks to trying to minimize value three three taking that mine design approach that we have now.
And from an ongoing 16, when looking at trying to make sure that demand is on it and resilience as it can based on that a range is hum because the geopolitical conditions didn't have variability the start show that the excellent x. gathering information.
So do we in the sound panel Vieri design outside.
Well had thing that are the key risk.
Its value driver for them on production right.
Not yet and I ran popularized at valley condensate Con thing productivity.
And said I think that didn't change to the with the same down and risk I understand how it's actually saying they are ends clay in the center the discussion.
Hi does that answer your question.
Yes. It does I think you touched on Geo technical ground conditions that source seems to be key issues within the parameters right of the design. So that is helpful. Yes. Thank you.
Both prior to any covert 19 related steps what was the.
2020 target for a total equivalent development because I believe the 2016 Technical report has just under 17000 kilometers and you know thinking about that it's I know, it's dynamic and it's probably changing week to week, but can you maybe quantify sort of the short term underground rates are they down.
10%, 20%, 50% and I know that changing on a week to week basis, and maybe give us a little flavor of how January and February performed.
Yeah, Rob So what I was just the thanks for the question what I would say is.
We've we've given you a fair bit of extra disclosure. This morning here right and in some respects. We've we've we've opted on side of doing that because we think is helpful. Even though from a timing perspective.
[music].
It is a little bit.
Premature in a sense that the question you're asking now.
We can probably on such a little bit better once we've finished the mine design, which is.
In the first off of this year than of course with the definitive estimate later and later in the years. So what I would say Ralph the best on so I think to answer your question is that.
We haven't disclosed on a monthly or peppery rates at the moment, but you look at assembled is going well I think we have seen in general.
The business to continue to to perform well end up was in my comments on the call that buyer is at the moment, we are sort of a bit of an inflection point inflection points in a sense that the operations have done well have been virtually not materially been affected by call. It.
On the underground and that affects know a number of areas were getting to the point where.
Really the travel restrictions.
Starting to have an impact and that has different effects on different work funds and so at the moment, where exactly at this stage, Ralph where we need to assess that.
To to them identify well.
What are the areas that are being impacted all of them mitigate mitigating measures that we can take if we can we likely need to support all.
I am going in authorities because at some stage, we will need foreign expertise to come into the country.
On the call today ROE, we can't quite quantifiable, because where we are and how fluid things are having said that in the weeks and months to come we will obviously no more and give you an update at the time, but today.
The timing of the call. If you like is we're in the middle in the middle of a very very fluid situation. So today, we can keep a specific number I'm afraid, but I'm, hoping that we've been able to give you a good picture as to where we are in what the types of impacts are and how we plan to address that.
Yes, so far I agree I completely understand very helpful answers. Thank you.
Thank you Rob.
Thank you. The next question comes from Orest Wowkodaw Scotiabank. Please go ahead.
Hi, Good morning, everybody I've got some questions Hello. This financing requirement of at least 4.5 billion. That's a really big number disrupt the market with though I think giving us details.
That if I understand this correctly design. So does that number include the all costs of the power plant.
And what is that costs.
Yeah. Thanks ours loop, that's probably look I think you'll get a little question on the call. This morning, I'm afraid I'm going to I'm going to us in diluted to take this one as well if you are located to them.
Yeah, No of course I'm happy to.
So listen I'm going to try and be a bit as comprehensive as I can be here. So it might take a little bit at time, but I believe let me just sort of go through the key assumptions that I'm kind of go into the calculation of the funding gap and I will cover power as well.
So.
The 30 Onest of December as we all know the total amount spent on the underground development was 3.5 billion.
And then OTI Hot further capital commitments of point 8 billion.
No as I've said before the company will have greater clarity on its incremental funding requirement as the definitive estimate for grasses and those discussions progressed with the government of Mongolia on securing a long term domestic power supply.
Nevertheless, current estimates indicate an incremental funding requirement as you mentioned of at least 4.5 billion and not over and above the two point below 2.2 billion in our available liquidity.
So while there remains the possibility of sourcing additional external financing subject to the required approvals.
I just want to make it clear we have not assumed any nor any possible re profiling of the principal repayments relating to the existing project financing facility.
In estimating the incremental funding requirements of at least $4.5 billion. There are several important variables impacting the estimated incremental funding requirements and I'm going to try and give you as much as well as much information as I can now in relation to those.
The first one is firming up the amount of incremental underground development capital required as we announced back in July there is expected to be a capital cost over on the between 1.2 and 1.9 billion.
The second is the timing of sustainable first production and that's resulted cash flows.
Recent work, including the mid access drive decision indicates that the schedule delay ranges, it's still within the 16 to 30 months as we've previously disclosed but it is trending away from the lower end of that range.
The third is whether its haven't told by based power plant is ultimately selected as the long term domestic power solution.
We did put out an announcement in February.
We do have a total project cost estimate for top quintile boy or for TPP that amount is up to 924 million on that's pending consideration of certain amounts yet to be finalized such as government fees licenses and certain reimbursements.
As per that happens all by investment agreement.
But we've also noted that there are other options, including the renewables option. Those are also I think there. There are also under consideration, but there is a fairly early stage at this point.
The next is obviously the timing of the principal repayments on the amounts currently drawn under the project finance facility as well as the related ongoing debt service costs, and you'll see an RM DNA and I covered this a minute ago that we have principal repayment obligations of $1.9 billion over.
The next five years.
The next important variable is the amount of operational cash flow to be generated as well out sustaining capital requirements.
In relation to that for the early years 2020, 2021, I would refer you to our 2020 guidance as well as our 2021 outlook.
And then obviously, there's a the new significant impact or potential impact of cobot 19 on OTI is open pit operations and underground developments and as the adults talked about a minute ago a minute ago. We're still in the process. It's very fluid at the state we're still in the process of a sad thing.
What that impact might be.
The other thing I can say is that as additional work is completed to better understand the impact of these variables on our cash flows liquidity and financing projections, we will keep you updated when appropriate.
We've also indicated that were well progressed in discussions with rail regarding its proposal for assort sourcing incremental funding.
On the knobs to ensure that the company can progress the underground development over and be up over and above our current liquidity of 2.2 billion.
So hopefully that gives you a bit more information I have tried to set out those important variables and giving give you the information that I can.
Specifically touched on the power as well so so hopefully that's helpful. Okay.
Okay as a follow up to that.
It is it still your expectation the majority of Taco for the power plant will be third party debt financed.
That's definitely still an option so I'm out I think as we've talked about and prior earnings calls related to TTP. There is the option to source E C. A funding.
Off the back of those any contracts, which I think we mentioned or are now in a position where they can be signs.
So that is definitely a possibility you know the Chinese may still be in threats may still be interested and in providing funding for.
For the ops dot power plants, but listen it's also worth noting that we are investing but we are in that investigating other options as well, including our renewables option and there may be other funding options available for some of those options, but worse, it's still relatively early stage.
So so I can't give you a lot more detailed there but you know you can appreciate for renewables option. For example, the pool of potential funding options, probably widens under that scenario versus something that coal based.
Okay, and the 1.9 billion of principal repayments over the next five years.
Have you started any discussions yet about terming goes out.
And that would obviously reduced by 4.5 billion.
Yep. So we're we're obviously, we do have regular discussions with lenders and not not just just TR Q, but OTI Rio Tinto is the manager we have all have had recent visits in discussions with lenders we haven't.
Started the formal discussions related to the re profiling of the Dobbs and I think you know you can appreciate the reasons for that.
We don't yet have a final mine design, we don't hot how yacht that definitive estimate and a lot of other information that those lenders are going to require to be able to make an informed decision. We are very hopeful that will be yet we'll be able to have those discussions around supplemental data or re profiling of the dot in due course.
And obviously, we will look at you know when the best time to do that is that once we have a final mine design of the ones we have a definitive estimates.
Ken It happened before the definitive estimate does it need to wait for that definitive estimates and related technical reports et cetera.
So so keeping close close contact with the lenders, but in terms of sort of hardcore negotiation that that hasn't started yet.
Okay and the final question for me just with the Cobot 19, pandemics impacting travel restrictions or business are such that people, it's not having any impact on the study work or is that just being done you know in Australia, and so the targets that you're putting out or <unk>.
Updating both a definitive study.
And other targets are still falling asleep.
Thanks always Joanne do you want to briefly just to answer the question I think we sort of indirectly address it before but then maybe or as before I want to come back just briefly to you as well, but John given it does take the question on impact on on study work.
And then.
And it back to me for a second.
Yes, thanks, Okay, sorry, my line wait a little bit funny at this at the wrong by net was that the cry and if our impact on study outlet.
Yeah I was wondering whether these for strict travel restrictions on my whole way up on because some people in Scotland impact at all the timeline for the studies or is that being done all sorry.
Alright. Thank you. Thank you take question apologies for that.
Yes. So you know that that is a good question and at the mine ends are similar to what's happening at mine, we're not saying too much on new patch, the where kids.
Largely being down it off sosh embracing.
And there its regular engagement and good communication facility set up between the thought a in Mongolia embraced then a insider threats still regular communication cold and input and feedback from the team.
Study thing the largely by embrace them.
And the off they obviously has a carotid virus precaution in place.
Hello, everybody set up hole tied to the habit to with the might like so at this stage, we not anticipating significant impact on the study shade Joan.
And and work is progressing added right bidding on chinesepod that situation.
Thank you.
Or is that just wanted to say one quick.
Comment in relation to your question on funding and.
But maybe it's an obvious statement, but I think when Luke took you through the components I think what you and what others on the call a finding clearly is not.
There's a lot of uncertainty because there's a lot of building blocks in place here and each one of them.
Fair degree of rain tried and as we progress through the rest of the year that rate those ranges will narrow and therefore, the funnel will become narrow and narrowing will become more specific in terms of what the actual funding need back two years, whether it's in relation to the underground whether it's in relation to power.
Whether it's in relation to the impact of corporate 19, so the slightly tricky thing and this conversation is that.
Intellectually is quite easy to identify the component, but each one of them has a range and you need sort of more and more certainty to narrow the range to than.
Well certainly under funding gap and it's really in that context that we are having discussions with Rio on the interim financing at the moment why well because we have a fast enough liquidity.
But we want to make sure that when we come through the definitive estimate.
Later this year and we move into next year that we have some time and flexibility to be able to explore and then put in place. Whatever then the appropriate financing arrangements are because today, we have ranges, but we need to progress some of the work to to specify that and then as Lou.
I was saying earlier to have.
No more finality on some of the numbers to then have discussions with our existing lenders for example that sort of why.
No, it's becoming more specific at this stage, it's quite hard because you have a lot of components in each one of them has a big range and so maybe that's an opioid statement to make but I just wanted to provide sort of not context.
How how we look the look at the overall picture illness.
Okay, No I appreciate that and I'll, just just one completely clear on US can you give us up the 4.5 billion how much of that specifically is related to existing debt maturing meeting existing debt matures.
But I mean, not that's the one point that's the 1.9 billion that I just that I told them into full 1.9 billion is included in that for now.
Yeah, Yeah, so, though if you think over that yeah. The answer is yes.
I see okay. So if you can turn those out so that in your funding commitment is a lot lower than for affiliate.
That's right and that's well sorry again, the just I want to be absolutely clear so that everybody understands we.
The the disclosure is at least 4.5 billion.
So there are scenarios, obviously, where the funding gap is is more than 4.5 billion, but if we are in a position to reduce that funding gap through our re profiling they'll goes it of those exists the existing principal repayments are not yet.
Go along the way to reducing ultimately reducing that funding gap whatever it ends up being.
And then just going back to what else said you can appreciate there are a lot of variable.
Those variables all need to be made more clear the final needs to be narrow wiping net narrowed it I think that was the terminology that off just used and we're absolutely committed to continuing to monitor monitor that to continue doing that as the situation does become more Claire.
And obviously provide the market with updates as we as we have about additional clarity.
Thank you.
Thank you. The next question comes from Hayden Bairstow at Macquarie. Please go ahead.
Hello, Thanks to thanks to the cool just a couple of somebody just ER is really adamant that so I'm, assuming you're just we just taking all the new expenditure et cetera for the next.
Well it is I guess to sort of by summer the debt repayments at sort of how the working out more that shortfall number is.
But also how do we think about the original $6 billion and funding so the <unk> cap within.
The current debt and the repayment should do a how that would play out if you're actually able to tell me what agreement on at least sort of in securing the financing for that 60 to bill.
It capitals go to Cushing said, Joe as well.
Yes, you do you want to pick that one.
I feel bad, giving you all the questions, but I think they're all [laughter] Freestor all yours, if you don't mind.
No I don't mind, yeah, though so let me, let me try and be as clear as possible on that so.
When we think about the funding gap and when we assess the funding gap at the moment, we're just assessing it based on our our our look our current liquidity, we're not assuming additional supplemental that re profiling of.
The thing that et cetera. So we've currently drawn 4.4 on that 6 billion dollar facility. Obviously in due course, we would be looking or we would we would be hoping that we would be able to source that additional 1.6 billion in supplemental data.
The current facility than it is not an accordion facility. So we still have to go out into the market and we still have to source stops. So once we have the necessary information and again that will be off the back of finalizing the mine design finalizing the definitive estimate et cetera. Once we have that additional information.
We do want to start those I mean.
Certainly from a CR Q perspective, we definitely want to have those discussions with the banks out the early as possible feasible time around you know about additional supplemental dad, and possibly well definitely around the re profiling of the current debt as well and.
Listen all of that part of a broader sort of.
Long term funding plan that we're still in the process of of well that we keep updating based on current facts and circumstances. So so there are other options out there as well and all of that will be considered at the appropriate time and again going back to what else that that's why we're focus at the moment.
And on getting that incremental sort of interim facility negotiated with Rio so that we will have the time that we need and 2021 about additional liquidity to consider some of these other options you know the supplemental that the re profiling of the existing dot and maybe some other options.
As well so.
So hopefully that that helps answer the question.
Yeah. Thanks, they know when we discuss something on the sought to where the there was some potential to what you're thinking about China sold will partially self funding for the definitive it. It's the kind that clearly repeatedly the case now and everything will be discussed with Rio after its relates to the L. I think indebtedness.
Well, if you look to when you take a quickly given that obviously one of the made I would say, there's no black or white onto the that Hayden I think clearly.
[music].
If you have a formal conversation with the financial institution, having a so called quote unquote final number final model is this ultimately required as you know well that doesn't mean that one cannot have discussions previously.
And so from our perspective.
The Finalization of the mine design that we're having in the first half is a helpful data point and I think we'll just have to assess once we've gone through that process. So thats a process in the next.
Two to three months or so.
Whether on the back of that what what level of conversations we can happen a meaningful way, we just need to be mindful. We have discussions we have relationships for many many years, let me know people well.
We just need to strike the right balance between having meaningful conversations.
Helpful as opposed to just wasting people time, so it's a very practical consideration paid we would like to do more sooner, but it just has to be helpful. If that's the simple answer.
Right, Thanks, and Joe and just one of them on the operational sort of things into development intellectual development rights still seem to be going extremely well in the shaft to nail done.
What is on the critical Bob I, Didnt think shops rainfall worst any utilize it shouldn't really better.
And then.
Is it just getting the develop the lateral development regan rather than the level sort of set up is that still but the key a critical path sort of timing to get.
At least this tool bill not necessarily sustainable production.
Yes, I think Heidi Great question, you know because it's a very complex project with a number of pot that have to come together for that fell and then to progress to us assignable production.
And sorry, there are number we're pacing that has the potential to pull on the critical ha Oh by the time like for example at some point. They can buy this is my thought that help on the critical path and side. Its an example of the pace it infrastructure that we keep an eye on the.
Commissioning and forecast commissioning died and thought it all as they paces Nate today.
<unk> and I inoperable condition not not come the second crashed that certainly that's a material handling system there to shop.
And base and emphasize paces made today.
Imply a to change the idle to progress at some point along the ramp up and said there are multiple connecting paces with multiple on the facilities has to be ready to be able to they eat into and I'm not trying to the advice even that answer but just.
All that to try to draw attention affected their number pace. They puzzled that need to come together, you know correct development Eikenberry, Kate spade, he's going quite well at the mine.
And we are keeping an eye on all of the infrastructure to say how how this is all going to come together and when these guys have come together in.
In the range that had saying Oh published is that helpful.
Yeah. So in terms of first droll build all we need the infrastructure, we shops to is enough to push the this fall through its drove Elizabeth.
Shopping is it is a key pay and it provides a then question as well as or handling capability.
But we have plenty to o'hanlon <unk> footprint, Oh, Michelle to today Commission.
And we didn't need ventilation capacity.
On to coming via a shop full and potentially shops clarient well side you know they thought they are important.
The puzzle no there's not necessarily one eight to 10 to the ventilation not because and clashing hardly a.
Hey.
And choices can be night about what were key dutton and how much ventilation you eat on various activity. So that's why you know they face paces are being monitored the wave I see.
In a conditioning die and where they're actually recorded.
So we get colleagues to sell and sustainable production.
Okay, great. So there's no somebody undergrad lateral development netsol impacted but don't have they expect sold so it is a consumers go it alone.
It is so it is absolutely progressing well I mean with <unk> Louis invested heavily in the development.
Alco workforce, and hi that Jason really excellent work continues on thought intellectual development.
There there are other places that day nascent specialized said.
We are you see relying upon <unk>.
Hi, some nice service provider, saying I will take to comes thought team I help on other parts of a project.
Okay, great. Thanks to all heard it was it.
Yes, Hey, nobody I know, Andrew and said that it sounds like where evasive, we don't mean to be and we need to be council that were not sort of using Colgate 19, as an excuse for everything but there is.
There was an element to that where you know at some stage everything is on the critical path right. If you wait for long enough and so thats what the team is monitoring at the moment has to make sure that what is the impact of the travel restrictions because it's subject matter expertise it supervisory capability at some stage you got to make sure you can actually manage your roster as.
Well right if you can't get people in and out for weeks in weeks, you end up with strategic issues and things like that so.
There's a number of moving parts and the team has sort of looking at all of that to to make sure we know.
What is on the critical path and therefore, how can you find ways to manage that and I'm afraid today, It's just way too early for us too.
To quantify any of that on the call today, but rest assured that works on going Hayden.
Yeah.
Thank you for next question asked from Craig Hutchison FTD. Please go ahead.
Good morning, I'll try to me breach or just I hate to belabor. The issue. The 4.5 billion dollar funding requirement above the 2.2 billion, but can you just give us a sense in terms of the assumption you're using for the delay of the underground 16 to 30 months are you using the midpoint of that number or the upper end to that number to arrive.
4.5 billion and the same question in terms of Capex to 1.2 billion to $1.9 billion Capex over on are you using the midpoint to upper end just trying to get a sense of 4.5 billion or is that the copper range of what you think it's gonna be or is that sort of at the midpoint.
Thank you thanks, Great Luke I think that's another one for you I'm afraid.
Yeah no.
Listen Craig I'm I would love.
To be I'm not sure how.
I'm going to try and be as helpful. As I can but I think the reality is then it goes back to what I said earlier.
There are a lot of variables and there are a lot of scenarios that are being run so it's not.
You know there is no one answer at this stage, which is why we're giving you at least 4.5 billion.
So where we're we're we're giving you multiple scenarios, we're giving you.
We're giving you I'm.
Sorry in adapting and monitoring the impact of.
Of this funding gap, we are looking at multiple scenarios multiple points on the sort of spectrum.
Both in terms of the capital cost overrun and.
And the the timing of for sustainable production, well I mean, what I am able today as those scenarios at the moment do still fall fall between the 1.2 in the 1.9 billion in terms of the capital cost overrun in in terms of the timing of first sustainable production.
They do still fall within the six seem to 30 months, but again, we are trending away from the lower end of the range.
Okay. Thanks.
Your next question is a follow up some orest Wowkodaw Scotiabank. Please go ahead.
Well. That's your line is open you May proceed with your question.
Hi, Thank you for taking a follow up just Luke a follow up on the project finance facility maturity schedule I appreciate you.
Laying out that schedule on.
Page 21, but can you give us a bit more granularity there specifically of the 440.
7 million that's due within one to three years can you give us the breakdown.
2000, 2021, 22 and on the similar to $1.4 billion will give us some breakdown between your foreign buyers.
[noise].
So sorry, you so there's there's the actual.
As a table in the M. DNA is at the table on the M. DNA that you're referring to.
I think what we do and not table ill give you.
One year out then we give you one to three years out and then we give you four to five years out meet all of that as Robert for the calculation of the funding gap, but dots that I mean, I'd add that they stopped the dot the level of detail that we've provided the market.
Okay. Thank you.
Yep.
Thank you My next question from Oscar Cabrera, Let's see I do see please go ahead.
Thank you greater and good morning or anything else.
Everyone, Oh, I'm, sorry, I dropped out of the call I haven't been having problems with my phone.
Just a couple quick things if I may and you know if you if you ask as it's been Glenn you know and I can go back to the.
The transcript, though the calling just to it.
On the on your statement that they need it delayed to the steady push production.
By more than 16 months can you provide more color on what what are the different things that make you state that.
Sure Scott I think the covenant briefly but what was due July maybe you covered it briefly already do you want to have a very bright quick summary forest, why we're saying with trending away and what the.
The components are or the main component that contributes to that statement.
Sure.
Thank you see question, Oh, Scott cannot Oh, I guess, one of the <unk> you know weve talked about in the mid access straw decision odd that was naive and it needs to the earliest shaped you'll die away from the Lowry range five T. mountains.
Hi, These combined we said that Don and she Angela reviewed that seen progress has given oh.
At a better understanding of the range. However are they still ongoing optimization and planning work that needs to be completed and the final design has to be elected hi, it's too late to provided full outside of the I'd say right.
So it's a working progress hasn't indicated that the final changeable fall outside the city maam.
And we are proposing any change to that range, but the range of results were saying at the with progressive is trending license. The lower end is that it's a helpful.
Helpful. John that you know spending away you know two months five months.
I know, it's hard to pin point at this point of but if we would helpful just to.
Ah to hear what what's your what you're seeing with with the different scenarios, you're playing with.
Right and you know I think he.
I understand the kind of crisis, that's going on at the mine and there are number.
Hi.
Well advanced design options there they can see that we thought it I range is assumption applied to died and therefore, there are a range of outcomes that we are saying and Sally the raising the language is leading the way here because there is still way.
Going on however that need access to draw at decision really has meant that we had moved away from the 16 mom and we're not kind of change the range that seem to cartridge to try to provide some say the color what bleach provided the whole.
Okay Fair enough John Thank you very much and then to the second question. Please.
In your conversations with them on gold and government.
Okay do you think that.
You can reach any conclusion with respect to either the power plant.
Or you know there's discussion with respect to the potential sale of the 34% stake in L.P. before the election.
Yeah. Thanks, Oscar So Luke I'll give you a break here because I know you normally couple of power as well, but you've answered most of the question. So if you don't mind I'll take I'll take both the please.
[music].
Yeah look I think Oh, let's go to save us not with how a first with power. This quite a prescribed mechanism in place it's called the palace. So as framework agreement, that's sort of governance the steps that we are.
Taking too.
Make progress as sort of two two months periods. There one we have triggered a month ago.
And that allows us to review the current haven't told my coal fired power plant with the government and then if the parties decided that they don't like that proposal. There's a second two months period.
In which we could look at other alternatives and we talked about renewables, but there could be on us. If you just add up those two months periods.
They pick the clock started to take in mid February So two times to will take you to the middle of June which is very close to the election. So.
First one I would say on how long it because it is business critical for us that is something where we are working closely with the government.
Where we own urging each other to make sure we make a decision sooner rather than later, because we don't want the business to suffer because we have uncertainty on power.
So that's a very very specific point.
The other issues that were identified in Hollywood meant to working report and the resolutions ranged from.
You know a number of issues I think there was a list of seven or eight or nine items.
And some of them are more complex than others. We've had a meeting we had a discussion.
Now it's been interrupted by the corporate 19 related travel interruptions I think we'll need to.
We'll need to work with the government to make sure we have a a timetable and the game plan that says.
I want to if anything can be resolved before the elections and then.
What what needs to be dealt with after the elections and the truth is Oscar at the moment with the the impact of the pandemic both on the business, but also on national governments.
You know, we're probably need to revisit that and we'll probably end up having to do more after the elections than we had initially anticipated when the the real resolution came came from us out in December.
Okay. That's that's super helpful. Thank you very much and.
Well the best everyone.
Thank you asked the same to you.
No no further questions I'll now turn it back over for closing comments.
Oh, Thank you operator.
Well. Thank you everyone for being on the call I know we've run over the allocated time, but.
I'd like to think it's a positive that we had lots of questions and all that rather than a negative let's come from our perspective I think.
We had a long debate.
Amongst ourselves as to how much of the additional disclosure.
We should give were not give you feel like both on the funding side as well as on the on the shared fuels the trending away discussion, we just had.
Because we recognize that there are still lots of questions. Both on the funding side and Luke sort of admittedly trying to answer most of them as well as on the on the underground development side, we decided.
In the end that we wanted to.
On the side of providing more transparency rather than less.
Even though the degree of uncertainty at this stage is still high because a lot of these items will need to be refined develop.
And as a result of that as we sit here today, you know we would love to give you more specific answers, but in many cases, we're not able to because the work hasn't necessarily progressed to that's degree of maturity yet that doesn't mean that there isn't a plan and become see when that will be the case.
Example, on the underground we mentioned to you before that the mine design will be finalized in the second half of this year.
At that point in time, we should be able to give you more clarity and then of course by the end of the year the definitive SW a lot more clarity, but there is sort of a roadmap.
That will allow us to be more specific.
On some of those items as we progress throughout the year and equally underfunding cider thing Oscar you asked a question on power for example, it's not the biggest component in the financing, but it's one of the contributes and so one once we get more clarity on power.
Once we have finalized the mine design.
That funding gap of which we've given you the floor at the moment will naturally narrow and so as we go through the year.
We can give you more clarity at the moment. We appreciate it is still quite wide open, but we felt it was important to.
To provide you with a small underfunding lead as well as with.
The trend at least on the the underground should fuel.
What.
I think is important though for all of us to take away from the call is we spend a lot of time to talk about those two things and we know why that is important but please also.
Forget that the business itself has continued and does continue to operate really well from an operational perspective, we think we had a strong year last year.
And we've said before on this call that.
Operations have continued to operate even in view of the impact of to cope with 19 crisis. There's no site and there's no case on side. We continue to export we continue to import consumable and the business continues to operate.
And it does so safely that's important and lastly, I would say.
The underground progress has also been being good we're now getting to the stage. We of course, we have to take hold with 19 considerations into account.
But up until now.
If you wind back the clock that thing Weve.
To July last year, we've said, what we've done what we said we would do I think we've taken the decisions. He said, we would take such as the one of them at Axis drive we managed to deliver shot to in the end, yes. It was late but in the end. It was delivered to the revised timeline I think you've seen some good productivity number.
It's coming through and we are maintaining.
The timetable for the mine design for the second half of this for the first half of this year as well as for there's going to the business. So I just want to make sure that nobody walks away from the call with just the questions but also.
Remembers that I think the business performance, especially in view of these challenges that we're saying today has been very very strong and among two and his team are working incredibly hard to two proof the business and has the business and of course the people to be protected.
Yes, resilient as possible and the corporation and the collaboration with the authorities in Mongolia is outstanding as well so all of that I want to make sure that we don't lose sight.
Off wouldn't be just focus on I know funding gap is important and.
The shift to update as important as another please let's make sure we don't forget some of the underlying.
Real business issues as well anyway forgive me for my long summary, but I wanted to make sure. We don't lose sight of that thank you for joining us. This morning apologies for taking more time than usual.
But thank you for your interest and as we said before please.
All be safe stay safe and we hope that to you your colleagues your family members.
Our own managing in these super a very very difficult times. Thank you for joining us this morning, and with that will will close of the call. Thank you very much.
Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and we ask that you. Please disconnect your lines.