Q3 2020 Fortuna Silver Mines Inc Earnings Call
<unk> for you to ask questions ticket of starting today with the opening remarks and introductions I am pleased the yield the floor to IR manager Mr. Carlos Baca, Good morning, Sir.
Thank you and Jim [noise].
Good morning, ladies and gentlemen, I would like to welcome you to Fortuna silver mines and to our financial and operations results call for the third quarter of 2022.
Today, we will be using our webcast presentation, which will be controlled by us to download. The presentation. Please go to our website and Fortuna silver and Dot com click on the investors tab, then threeq and the financial support of and under Q3 click on the earnings call webcast link.
Okay got it, though and also our president and CEO and director and Luisa audio and also our CFO will be hosting the call from our management head of policies in Lima value.
Before I turn over the call to Jorge I would like to indicate the this earnings call contains forward looking information that is based on the company's current expectations estimates and beliefs. This.
This forward looking information is subject to a number of risks uncertainties and other factors actual results could differ materially from a conclusion forecast or projection in the forward looking information certain material factors or assumptions were applied in drawing the conclusion or making a forecast or projected for the.
The action as reflected in the forward looking information additional information about the material factor of that could cause actual results to differ materially from the conclusion forecast or projection and the forward looking information and the material factors or assumptions that were applied in drawing the conclusion or making a forecast or projection as reflected.
And the forward looking information is contained in the Companys annual information form and Mdna, which are publicly available on SEDAR.
For the company assumes no obligation to update such forward looking information in the future except as required by law.
I would now like to turn the call over to quarter hypothetical and also our president and CEO and co founder of Fortuna.
Thank you Carlos and good morning tool and we presenting on the promotion for third quarter results and discuss the start of the so for operations in Mexico, Peru and Argentina.
And then during the growth over to Luis who will take you through the financial statements.
On slide six of the presentation.
On slide six of the presentation in the third quarter, we have reported the highest financial few years in the company's history for sales free cash flow from operations and the adjusted EBITDA.
Free cash from operations was a strong $30 million and our EBITDA margin stood at a robust 51%.
Over sales.
We have $85 million in cash as of the end of the quarter and are comfortable equally the position of $140 million. We the mall the debt to EBITDA ratio of 0.7.
And Linda we produced our first gold on October 20.
We are boring gold every week and made our first sales in November we are in Merced in the ramp up by the these with the aim to stabilize production of the PCB the design parameters by year end and into the first quarter.
Okay.
And the despite continued growth with 19 related restrictions or mines in Peru, and Mexico metal production of the objectives in the quarter in Argentina.
Restrictions on flow of personnel of gross national and provincial borders hamper and drive our ability to provide quick response to the various issues that arise as part of any production ramp up phase.
Our gross all sites.
We have streak cemetery protocols in place and have taken over 8200 PCR of this two or personnel reporting approximately 391 positive cases for core of it so far.
On slide seven.
We share here or key safety performance indicators we.
We present the gate the ice has a 12 month rolling average to better of recent trends.
During the third quarter, we had a spike in lost time accident.
These were mainly related to the start of operations of Lindero, whereas the workforce is largely local and gaining experience in mining the.
This area of the of these accidents was minor as shown by the industry's series the rate of the graph to the right. Nevertheless, applying of fashion EPS in place to further mitigate risks associated to largely and experienced workforce and lean data. The in spite of all over the training the diesel.
The workforce has been through.
Slide eight.
Silver production was our budget and free.
Previous year by seven and 10% respectively.
The increase was driven by improved grades other San Jose mine.
Gold production was above our internal budgets and and previous year by 17 and 12% respectively.
The increases were driven by a welcome contribution of approximately 1400 ounces of gold from Big volume of mine and higher grades of the ore San Jose and my thanks.
Gold at Caylloma is coming from us in the mall near surface high grade or should we.
Which is an unusual occurrence of this mine and we're carrying studies to better understand the jewelry controls of this occurrence.
Slide nine please.
Silver accounted for 59% of sales and 28%.
For gold for a combined 87% precious metals contribution in the quarter, we sold silver at the realized price.
Of 24 of the orders and 90 cents per ounce compared to $17 per ounce per year ago.
We sold gold at the realized price of $1925 per ounce compared to.
1487, a year ago, we continued to observe with expectation the consolidation of what is configure and to be a historic bull market for precious metals and mining equities at the time when we are prepared to the lever material growth in annual gold production driven by or the Lindero.
The mine.
And then.
And as I mentioned in the highlights slide of the start of the presentation, we had record breaking quarter in terms of key financial metrics. This performance was driven by higher metal produced and significant.
Increase in precious metal prices as Jos mentioned.
Sales were up 36% to $83 million.
EBITDA was up 120% to $42 million and the adjusted net income was up 747% to $60 million for nine cents per share.
Slide 11.
San Jose.
All in sustaining costs increased 11% to $12.
Per silver equivalent ounce the cost increase was driven by components, which are sensitive to higher prices like a workers' participation of mining royalties and sustaining capex.
At the Youre modeling sustaining cost increased by 23% to $19.40 per silver equivalent ounce. As the result of of 21 day garbage related volume very suspension of operations and we took during July.
Slide 12.
Year to date for capital expenditures on sustaining operations growth and exploration amounted to $50 million Lindero capex in the quarter amounted to $12 million.
On our financial news release dated August 13th we provided guidance for the total remaining funding requirements for lindero to be in the range of $55 million to $60 million.
We are executing within this budget and expecting due to the largely self funding in Q4.
In slide 13.
We share with you our first the day of ours produced at Lindero on October two and.
A major milestone for the Dean for the company.
We are boring dory gold every week and the first sales have taken place in November.
Slide 14, we share a simplified view of for major milestones and schedule for the project.
As I mentioned before we are immersed in the ramp up of production and plan to the in operations and the sign Ray.
Rates in Q1 of next year.
In slide 15.
Yes.
The net of construction is substantially complete in.
In these initial months of production were of serving a very good reconciliation between our long term block model and blast hole something.
In these early days leaching kinetics for gold are also tracking according towards the sign curves.
For 22, any we are revising our forecast for gold production of Lindero to between 13000 ounces and 15000 ounce.
For these forecast, we're taking into consideration temporary operational restrains to incorporate irrigation parcels at a faster pace than originally thought.
This is due to the advanced stacking sequence with trucks were using this issue goes away in November with the start of conveyor stacking.
Additionally, management is taking a more conservative approach for the ramp up of the Hbr agglomeration Unstacking ceased the.
The goal of it related restrictions for the movement of personnel to site and between provinces in Argentina as a source of small, but creeping delays at the team moves to solve the various issues that arise as part of any ramp up for us.
In the next slide.
We share with you views and and updated photos of the.
Good day and status of the of the site.
And I would invite you to visit or web site, where we keep an updated gallery of of photos on slide the.
20, sorry, 16, we share with you a view of the beat and the.
These are the people who are moving the scheduled 40000 metric tons of material every day of which about half is or and half is weight based we're keeping within the schedule the strip ratio of one.
And.
The beat these run very efficiently is performing well five for 100000 trucks to wheel loaders.
Uhhuh of production drill rigs and so tight knit operations.
In the next slide we share with you a view of the secondary essentially and tertiary crushing.
Following slide you sort of view of for agglomeration.
We have been the dealing you know so the knee shoes that are normal to ramp up.
And you know improving the dust control and making adjustments to some of the shoots and and and components of the crushing system, where they can report the that we have not identified any material issues and.
And and ER, we are trending in the right direction with respect to achievement of the sign parameters.
And.
In the slides and quarterly share we have a view of for first the irrigation sales.
And looks like lease there. We'll then the view of the the our plant and and bounce area.
I mean, the last line, we share a view of the SAR blunt. The third plant is the last part of the.
The system that will come in.
In line, we expect the start commissioning to initiate.
The second half of the of November.
And our core and the asset portfolio and the here just.
Highlight the fact that the Lindero and.
We'll be moving up to the pinnacle of the pyramid, joining the San Jose and pay on the as our third mining operations.
Moving on the I, let Luis now take you through the financial statements and pilots.
Thank you for <unk>.
So its.
As previously.
Mentioned, we had a record quarter in terms of sales EBITDA and cash flow.
The recorded sales of $83.4 million of 36% above Q3 2019.
On the back of higher metal prices higher metal production and.
[noise], partially offset by higher treatment charges from 2019 reported quarterly net income of $13.1 million and 16.1 million and on an adjusted basis and earnings per share of seven cents.
The loss in the comparative period of Q3 2019 was related to an 8.2 million foreign exchange loss related to the early NATO the A.D. receivable in Argentina.
In Q3, 2020, we had reported the Netflix loss of 3.5 million of which 2.7 million is related to the the middle of the 18.
Also in the reporting quarter, we had a higher effective tax rate than what we expect the non recurring basis with the impact of around one cents per share.
Consistent with the drivers I have mentioned, we saw the material increase and EBITDA and free cash flow and Scott and pointed out as well.
Cash flow from operations of $30.1 million represents 36% of sales.
This number of contains the positive impact of around five and a half million dollars from changes in working capital the.
Related to timing of certain payable items, but even excluding the is the fact free cash flow was close to 30% of sales.
So one of the slide the.
Slide 25, when breaking down our sales performance for the quarter, we can see the highest impact came from higher silver and gold metal price is in particular silver price contributed $5.2 million out of the total $22 million increase and sales.
Also worth mentioning the negative impact, we see from the treatment and refining charges and which have been a consistent the teacher of 2020 are expected to revert in 2021 as we are seeing much improved terms and the market for next year.
On slide 26, when looking at the comparative segmented results over Q3 2019.
We can see the the strong performance of both our minds and consent of your mom.
In terms of EBITDA and cash costs.
The San Jose there is higher.
Higher all in sustaining cost in the quarter with Johns Hopkins plane is related to items of course of their leads to sales and profits specifically royalties and workers participation.
Also of course I mentioned, there is a of the smaller.
Smaller component relating to the timing of for Capex execution.
Okay, you will have the financial impact of the 21 day suspension was more than offset by higher silver prices and the significant contribution of gold production in the quarter, which represented 13% percentage of sales outside the <unk>.
Both mines reported lower costs year over year that contributed to our improved financial performance.
And as well and so was the mentioned by coffee the the higher all in sustaining costs of the your line is related to the temporary 21 the suspension.
So on slide 27.
Do you have any other operations reflect the cost containment measures implemented in Q2.
The increase in share based payments and strictly related to the performance of the share price our effective tax rate was 53% for the quarter.
And the devaluation of the Mexican Mexican finished the year to date continues to affect our income tax provision.
And the we estimate the impact in the quarter in terms of the effective tax rate was around seven percentage points.
Finally on on slide the 28, we provide an overview of the evolution of our liquidity position over the last few quarters.
Total liquidity at the end of Q3 was $140 million.
The main take away here is that in Q3, our cash position and total liquidity already reflect an inflection point as we recorded a small increase of $8 million over Q D Q2, and sorry.
Total cash expenditures and the little in Q3, 2020 were $28 million, which was more than covered by the cash from operations.
In Q4 of the NATO, we expect additional construction capital expenditures of approximately $12 million plus.
Plus the additional cash outlaid silver similar magnitude related to construction construction of payables as we close the point.
But the real catalyst.
Thank you Luis we would now like to turn the call over to any questions. The you may have.
Gentlemen, thank you.
And to our listening audience of you would like to ask your line of question over your telephone line simply press the star and one on your telephone keypad pressing star and one will place your line into the queue and I will open. Your line. One other time also of friendly reminder, that if you're joining us today on the speaker phone. Please return to your handset prior to the pressing star and wanted to be certain that you're sick and does return.
The equipment once again, ladies and gentlemen that of Star and one if you would like to ask a live question, we'll hear first from Trevor Turnbull at Scotiabank. Please go ahead Sir.
Yeah.
Hi, Jorge and Luis.
I kind of question.
I'll bet you you talked a little bit about what you are doing in the last few months of the year November December and Lindero can you talk a little bit about how October looked in terms of what you were able to get on the pad in terms of tonnes or ounces.
And and can you talk also a little bit maybe about how the mining costs are tracking at a at lindero so far.
Yes.
The total or what's difficult and month and in the ramp up.
We have the two breakdown so.
The conveyor hit poorly.
And something quite the on usual, we never seen anybody and the team a break of.
For the sake like that.
Particularly new pool, the so that was.
A problem, we'd probably geisha.
And.
That the took us down pretty much Ah 12, 13 days in the month right there.
And those are you know very simple to two to manufacture the we manufacture them ourselves in south the.
ER.
And the we have manufactured.
For the pet food is something that we have never carried in stock and anywhere and.
In light of what happened, but nevertheless, the took us down the road around 12 of Ace in the month of of October.
The or the sign rate of.
Of Ah or the signed rate of production in the crushing system.
It's about the 1100.
The metric tons for for hour.
And.
We have been.
We are we we are running right now on average the round for the year so far at around 800, not so in the ramp up.
And we're doing well.
And by.
The loss of of operating hours in October of operating days in this case the pick up too so as I mentioned and I think we're tracking in the right Directionally with the and you know theme of from experienced the operators go we have trained but never the they're the less there is always a occur of there as they gain.
For experienced with the equipment.
The and the limitations with the you know rotation of supervision and and speed and which we kind of address issues right.
But ER.
In November and where faring better.
Okay and again, the the message I think over all of these we are heading in the right direction, where it's just taking a bit longer because all of these drugs with the difficulties to move personnel.
And that are related to our ability to so [noise] issue.
Issues on site right now.
HM.
And with respect so now that November is is kind of settling in and it's a little more typical of of operating can you can you say anything about how mining costs look on a unit cost basis compared to what you're targeting.
And I'd say, we're I'm not and unit costs of the mine the are well within our expectations, we're not seeing any significant deviations and so us [noise] for.
For for Q4, we we expect to be reporting.
Ob and the capacity to report mining costs within our original plan and there's not much of deviation from that side of the different of course for the <unk> for.
For the plans and indirect cost where there's still the other stores in and around book, but overall, we see that the our expected cost sort of steady state is is achievable and on track, which is in the range of 10, and the hard to $11 per ton per tonne of process or is it the main driver.
As for cost on the side of consumable sort of what the fuel for energy as we sort of generate.
Cyanide and and labor and the the issue.
Pricing, we've been able to achieve on on the cyanide and Ah fuel he is well within what was in our you know budgets.
Yes, absolutely.
Okay that sounds good and I understand because the irrigation has been a little bit and see the unsteady of your due to the way the stacking configurations and it hasn't gone the exactly the way you had originally planned is it is it possible to give us a sense of recovery, though from the heat.
How if that's tracking also of the way you want it to.
Yes, as I mentioned, the leaching genetics and something we're looking at current carefully.
And we have the benefit that these there's little interference with these initial sales as there is nothing stock on top of them.
And are they the percolation is quite a rapid right the solution for correlation of the irrigation the.
The the cycle.
It is quite right because these are the the sales closest to the plastic right to the bottom of.
So and we also have or column test to control.
And whats happening and and what are we kind of report is the the leaching curves are performing according to our expectations remember that.
And we are currently placing corsair or they were you know the sign calls for we're placing more out of the 80 of around 35 millimeters.
And what would be signed needs.
Nine millimeters.
And by.
And we have done day column tests and have done or a per reactions based on this course or crush.
Okay, and we expect.
And to be at the well the.
50 per cent recovery within 90 days and that's where we are tracking in the initial sales we the type of some issues and there are also more operational and we had the veto the bonded bonding.
Okay, and one of the sales.
And we are after stuck.
Starting with trucks, we are.
Before we start the irrigation we.
We prepare for the ground no. We we work there the the first third 30 centimeters and.
We have to go and be deeper.
And due to the you know traffic of trucks, we have to go up the deeper and the ones. We did the the problem just went away.
So you know.
And then we have some clogging of Ah bypass the because of the dosage of react and that we use in order to avoid and the position of the carbonates and the pipes.
You know that's all of those on the issue that was the identified and quickly addressed but you know just normal stuff of that you'll see through through a ramp up in the new operations.
And the the problems are being managed leach and kinetics or trucking, a along with our expectations and yourselves and these issues and with respect to the speed at which we can incorporate new areas and the irrigation, yes, we have made an adjustment.
In our forecast.
And.
We are not able with the we were not able to implement.
And and.
We treat stacking, which would've of allow us.
Two and bring in irrigation and March faster pace, we are.
The stocking with trucks.
In the in and I and I know that's not in retreat and also we need to wait until the sale is complete and well and that's when we can start to irrigate so that takes away the speed at which we can bring new ounces and the irrigation. This is a temporary issue.
Related to the the fact that we're stuck and we've we've trucks.
The we this week, we started working with the conveyor stockers and these broader than just goes away with the conveyor stacking, which is the sign for retreat stacking rights.
Yeah no understood.
Maybe one just very simple last question for Luis and that is a with respect to the that recovery any sense of kind of how that how you expect that the play out.
Yes, we expect to start the collecting.
Collecting the 80 and as soon as we.
We started the selling and it's got to commence and we had our first sale in November.
And and based on from the existing.
Regulation and the amounts we are able to collect as the percentage of sales every month.
Our expectation is that the within total them for the month, we should be expect too and we should be able to expect to collect the the full amount of in base. So slits.
And you might be aware you the collection is in local currency and.
So that's the timeframe of true.
Perfect. Okay. Thanks, guys, that's all I had.
The for Trimble. Thank you for your question.
The next we'll hear from Chris Thompson.
Financial. Please go ahead your line is open.
Oh, how are the guys.
Just thanks for taking my questions of.
Just because.
Okay of the pictures it looks like a great place to build of mine.
Couple of quick questions here.
You do mention that you're allowing for additional time to fully.
Take I guess, the HPG, a agglomeration and stacking systems to commercial so it's that's built into the the the timeframe you anticipate for the first commercial production and Q1.
We are really and PC faded increase too.
To have to place about half a million and.
The ponds.
Oh for crashed the or on the Leach car garage, the agglomerated or on the leach, but in the December.
We are reducing that the tonnage down to about 320000 stones and.
Daddy's accounting for and what we are.
And creating would be a more realistic based on the limitations that we're facing.
A with the SEC quality of the environment right now.
And as I expect the the flow of people supervision and technical assistance.
So you know how it easily the commissioning and.
Okay.
Sometimes it just goes very well and smooth and sometimes it gives you a video of grief.
So in the sport and we're taking a beautiful more conservative position with respect to the tonnage we have not translated that into the first quarter of the year.
And.
You know certainly something we are monitoring.
And.
If there is our expectation is to the do they and we should be net position early in Q1.
And to be achieving and.
Yeah about half a million ounces of ore placed on the leach, but every month right.
And we before incorporating the before incorporating the.
The the H.B.R. and and conveyor sector, and we were already close to that rate and.
Yeah.
Of production right.
<unk>.
Right could you just for what do you need to achieve the.
The tick the box by way of commercial production and maybe you could just remind us of that.
No I think we would like to see a and a.
ER mechanical aspects of the operations.
And within the 85% of Ah the site.
No.
Again the of the first the mine is operating at the the signed rate primary and secondary crushing had been operating GAAP.
And within that the.
A range of efficiency and productivity, we just need to be able to sustain it.
Okay, and now we need to incorporate the last part of the train with respect to of the metallurgical performance of the.
The end of the aim at the already got for frozen the is what he will be a.
But vicki net leaching kinetic sort of king according to our expectations, so far and the age of the our plant and.
We also had some early issues with day I really think the green temperature in in the Cauldrons up to the sign those issues have been so I believe the age of the our two days the odd or close to the same for I'm at there. So I think the main thing is to see the this last.
The portion of the crushing system, I mean, and how the entire train and from primary crushing and all the way to the stocking at the lingering.
I thought the around 900, ER and bonds.
Tom Spiro our right.
Right right Okay.
When do you anticipate the being in a position to the plates.
So to increase the grade two to expectations the on the pad.
No. We are the liberating degrade the if you look at the aggregate were behind but the only reason why why we are behind in the aggregate.
Is it because.
In the early start.
Of the crushing.
We did not have the.
The because of the social distancing guidelines.
We didn't have room in the comp.
To accommodate the operations work force. So what we were moving where we were feeding the mill with the medium and low grade stockpile, we were feeding the plant with the medium low grade stockpile.
And so on on the on the aggregate, that's what's weighing down on us achieving and.
And the sign or plan and great, but I said, the conciliations trucking well and that was an issue related to the first month two months of.
Initial production and Oh, you know.
Or operations sort of the liver and the great no.
Oh, I don't see an issue there.
So okay. So we kind of so you you and stocking.
0.9 gross.
Gram per ton right now and the pets.
Yeah, Hi go by today's reported 1.2 non.
No I mean, we're talking with we the expectations here.
Alright, Thank you for the whole thing.
And then just stood just flipping gears a little bit just so the say I wonder if you could just the update us on the obviously there was news last year related to the Royal royalty disagreement.
With the government.
Any developments on that front.
Yeah.
Nothing and.
New.
And just as the recur and.
The the cases in car in court.
We have been granted a day of execution by the court.
So protecting us from any intention to collect the royalty on.
On the part of the Secretary of mines.
And the cadence in court.
It's good or the volume and could be the we have some.
Indications that we might see a ruling on first instance.
And faster than we or E mail the anticipated.
We were expecting these Ah would take several months to get the result on first the instance.
And the latest the is that ER eighties, perhaps possible to see a ruling before the end of this year.
A.
I ruling would be a ruling on first instance.
That any of the the parties can appeal.
And ER if.
That is the case or stay of execution for.
Thanks for the company through all of the appealing appeals process as well.
So are they the I think they only change could be perhaps is that the there are some indications of we could see a ruling on for Ses. The instance faster than already out of the N. TCP.
Great. Thank you. Thank you.
Mr. Tom and thank you for your question.
Ladies and gentlemen, as a reminder of that is star and one on your telephone keypad. If you would like to ask your line of question next we'll hear from and individual Investor Mr.. Jason Maloney. Please go ahead, Sir your line is open.
Yes. The you boys are doing a good job I notice here and back to the best Canada. The out of the company value the $16.62 per share Canadian and the lots of questions. Just wondering of Warren Buffett is interested in taking a large position. Thank you very much.
No I, we have no relation with the that the banking cows. So we don't know that coverage and the last I heard wire and is not interested and they kept positioning for the two.
Thank you for your question, Jason next we'll hear from Gary Dog and with silver stock analysts.
Hey, guys. Thanks for taking my question a lot I had questions about lindero her we're looking and 2021 and through the end of this year, but I I guess, we went over and I'm pretty clearly and and.
And I guess, my second ones would be Argentina, and the capital controls you know are and what was the there was about 106 no I think you get out before capital <unk>. Charles Kit. Then you know does that change at all and you just got sublease the lease.
Yeah, I I kind of give.
Give a quick introduction to the that the tough.
Yes, there there so we all know of capital controls.
The or or restrictions on the access to exchange rate and dollar exchange rate.
And the now or plan.
And we have the repatriation plan in place a considering all the current restriction on sort of limitations and play by the government and our repatriation plan is not even park the for the better part of 2021 by any of these measures because.
And the structures, we used and and the too.
The contribute the funding to two of the NATO and we said on or the one that they'll do during the more precise the for we should be fine for the first the I'm going to any $230 million or we should be able to.
Repatriate the of directly out of sales proceeds without having to bring those funds back into the country again, a under the intercompany debt structure. The we have in place.
And this particular component component of Ah or the company that is out of the scope of the and seats and restrictions today.
And of course, I mentioned that should cover us for the first we.
We expect the at least the nine to eight months of for 2021.
Right right, Yeah, that's well, okay. So that gives us a little and insight into Lindero outlook for 2021 as well if you look at the cash flow of it.
Yes.
Yeah, Okay, all right that's great I appreciate it thanks for answering my question.
Thank you. Thank you for at least.
And once again that is star and one on your telephone keypad, if youd like to ask the life question. We'll hear next from Ryan Thompson at BMO. Please go ahead.
Yeah, I was actually going out the the same question and the the last caller, but and.
The south <unk> another one.
I mean in Argentina that they're one of the export tax net wins reintroduced I think it was a wash the or at some point and there was talk about export tax that's actually going in the lab at some point and can you maybe just a comment on the right.
Where things are out of the tax and.
When it comes on line.
The export docks it.
He is currently at 8%.
For gold the products.
And Ryan and ER, and or particular case, we kind of attack stability treatment agreement affects that really the agreement.
The the fixes that and about 5%.
It, but that's something that in underage and Tina and ER.
And loss.
And you claim after you close the exercise for the year no for the March.
We're we're not planning to planning to claim back anything for 2020. So our plan right now is that for 2021, which would include 22, and we will start of the process to claim and the difference is.
In Argentina and works of the different than in other countries like they do for example, where we also have a stability agreements starts every day agreements.
The net.
Unlike the rule.
And there you have to.
They fix it the total amount of your tax burden and the Norway and are you looking at.
All of their Doc so.
And.
And.
Components of the total effects for them and they look at the total amount and see if there is the gain or loss and then you are you can claim the difference right. Instead of Luis is different the works by what you fix the in terms of the the IR for or.
Sorry.
Income tax or the royalty itself.
But.
We plan to see there is a difference in 2021, and then claim and back through 2022 right.
Thank you.
And ladies and gentlemen that does conclude our Q and a session for today's call I'm pleased to turn the for back to the leadership team for Fortuna and Mr. Carlos Baca.
Thank you, Jim we will and thanks, everyone for listening to todays earnings call and look forward for your joining US next quarter of a good and of the year right.
Oh.
[music].
Uh huh.