Q4 2020 Sandstorm Gold Ltd Earnings Call
Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time your lines of a can be placed on music hold thank you for your patience.
[music].
Good morning, My name is Lindsay and I will be your conference operator today.
At this time I would like to welcome everyone to the Sandstorm Gold conference call.
All lines have been placed on mute to prevent any background noise.
Please be aware that some of the commentary may contain forward looking statements. There can be no assurance that forward looking statements will prove to be accurate as the actual results and future events could differ materially from those anticipated in such statements.
After the Speakers' remarks, there will be a question and answer session if.
If you would like to ask the question. During this time simply press Star then the number of one on your telephone keypad. If he would like to withdraw your question. Please press the pound key.
Thank you Mr. Watson you may begin your conference.
Thank you Lindsey.
Good morning, everyone and thank you for calling in for this Q4 and annual earnings call for 2020.
Today I'll provide a brief update on the company for investors and then the her fan our CFO who's going to walk us through the queue for an annual results and then David Warren will provide a brief update on a couple of our assets. The after that I will turn it over to the operator for a question and answer period and if anyone has any questions that do not need to be part of the live Q&A you can ask those questions.
Through the web portal and we'll ensure that each question, we get there will get a direct response for the months after this call.
At this time, we're going to be going through the prepared Powerpoint presentation on the web portal. So if you're able to please turn your attention there now.
As everyone is well aware COVID-19 brought many challenges for 2020, including mine shutdowns as well as operational curtailments, which led us to withdraw our guidance for the 2020 year.
And yet I am pleased that we're reporting both record Q4 and record annual revenue as well as record Q4 and record annual operating cash flow.
It's our expectation that 'twenty 'twenty, one will not have the same shutdown challenges of 2020 and as a result, I am pleased that we are now issuing production guidance for 2021 of.
You can see here on slide for the we're expecting sandstorms attributable gold production to increase from 2020, and we're providing an initial guidance range for 2021 between 52000 to 62000 gold equivalent ounces.
Assuming the midpoint of this range and unexpected gold price of around $800. An ounce. This would translate into a record revenue of approximately of $100 million U S. Net operating cash flow after taxes and after G&A of approximately $75 million of U S, which would also be a record for the company.
Therefore overall, we not only had record cash flow in 2020, we're expecting to set the new cash flow of record in 2021, if gold prices continue to stay strong.
It is my opinion that there are really three primary reasons, it makes sandstorm and exciting investment going forward.
The first is that our existing portfolio of royalties and streams is performing well and is generating record cash flow.
The second is that our primary growth asset Hot button is exciting catalysts happening in 2021, which I'll talk a little bit more about later.
And the third is that we have more capital to allocate than we've ever had before.
Specifically you can see on this next slide of between sandstorms cash on hand on.
<unk> operating cash flow this year and our Undrawn revolving line of credit we have half of $1 billion. So we can allocate to either making acquisitions or returning capital to shareholders through either share buybacks or dividends.
This is an important catalyst for sandstorm and it's one of the things that sets us above and apart from a royalty of competitors.
You can see on this next slide the amount of relative capital, who we have to allocate specifically the slightest measuring the amount of capital. We can allocate this year as a percentage of our market cap with the conclusion that we can allocate approximately 30% of our market cap, which is more than triple some of the other competitors.
The big question, which many of our shareholders are rightly asking us how we allocate this capital.
With the three alternatives effectively being number one the acquisitions number two share buybacks and as I said, a number of three dividends.
Although we will absolutely we do not have a crystal ball I would expect that we will allocate capital to all three of those alternatives.
On storm as a growth company and we want to continue to grow our portfolio and we will do exactly that.
We are being patient and ensuring we make intelligent acquisitions, but we're working very hard behind the scenes the.
Making a few acquisitions in 2020, we actually worked on twice as many deals in 2020 years compared to 2019, and so far in 2021 of our deal team is even busier than we were last year.
Fortunately for sandstorm shareholders I believe that we have enough available capital to also return capital to shareholders, while we grow the business.
It is our management's belief that any decrease in our share price from these current levels warrants us buying back our own shares and then canceling those shares.
This would continue to reduce the total number of shares outstanding and will increase the value per share and the cash flow per share to our remaining shareholders.
Therefore, if there's any further decrease on our share price, we will be stepping into the market to repurchase shares.
You can see from this slide that every year for the past three years, we have put our money where about us and we of repurchase shares starting with $2 2 million shares in 2018, and then $8 7 million shares in 2019, and then another $4 6 million shares in 2020, all at a weighted average price of $5 13 per share.
Based on this past practice shareholders should not be surprised to see us do it again in 2021.
I do believe that even if we make acquisitions and the repurchase shares that sandstorm stable long term cash flow would also justifies declaring a small dividend either towards the end of this year or next.
Our current thinking is that the initial dividend would be quite small because it would continue to increase over time, So I would say to our investors stay tuned for the timing of this decision.
Looking forward to 2021, we're encouraged that it is expected to be of catalyst rich year with the number of potential positive events, which will benefit shareholders.
For example in 2021, we expect our primary growth asset hot button to be granted an EIA for the Turkish government, which is of key permitting milestones.
We also expect to be releasing the results of the Hardball on feasibility study next quarter and then later in the year to officially award of the EPC contract for the mine's construction.
In addition, we anticipate completing new deals in 'twenty, one 'twenty 'twenty, one to grow our portfolio well, both buying back shares and potentially declaring our first dividend.
And we expect all of these catalysts, while benefiting from the continued exploration success by our partners as they continue to find new gold ounces that will benefit our shareholders at no cost to us.
Overall, despite COVID-19 2020 was a good year for sandstorm and based on the catalysts I see before us I'm expecting the 2021 will be an even better year.
As I have mentioned in the past I'm very bullish on precious metals over the next 10 plus years Sandstorm is well positioned based on our existing portfolio of assets to profit from this but we're working hard to get even more precious metals exposure, but I believe that we are well positioned to accomplish that.
With that I'll now hand, it over to <unk> to go through the financial results.
Thank you know on Hello, everyone. Thank you for joining us today.
I'd like to take some time to walk through the financial results for both the fourth quarter and year end and highlight a few noteworthy items.
To begin I think it's important to recognize the 'twenty 'twenty with the euro Unlike anything we've seen before.
Despite an unforeseen decrease in expected production from a few of sandstorms cash flow on royalties as a result of the pandemic sandstorm had another record breaking year in terms of both revenue and cash flow from operations.
This chart here shows the trend of gold production over the last decade, and resulting revenue for sandstorm.
While the number of gold equivalent ounces sold in 2020 was closer to Sandstorm is 2017 fiscal year the run up in the price of gold assisted sandstorm its financial results.
We are optimistic moving into 2021, and we have no reason to expect further delays to production as a result of the pandemic and.
And so we expect sandstorm to be back on track for setting record production levels over the years.
This time in a much stronger gold market.
Here, we can see the average realized gold price per attributable ounce overlaid on this chart and.
In 2020, Sandstorm sold each of Trimble gold ounces at an average price of 1700 and $83.
With an average cash cost of $269 per ounce. This resulted in a record cash operating margins of approximately $500 per attributable ounce.
The set of new record for cash flows from operating activities of approximately $66 million in 2020.
Looking at the summary of Sandstorm as of yearend financial result, as mentioned Sandstorm had total revenues of $93 million of 4% from 2019. This came from 52176 gold attributable ounces sold during the year compared to six.
The 3829 in 2019 as.
As I've, just mentioned $65 $6 million in cash flow from operating activities were the record for sandstorm, which resulted in net income of $13 $8 million for the year.
This next slide of the summary of the fourth quarter financial results quarterly revenue was also a record of $29 $7 million of 24% from the fourth quarter in 2019.
The number of attributable gold equivalent ounces sold in the fourth quarter, while not a record was back in line with expectations.
The mining operations and our portfolio of producing a full capacity again following the COVID-19 related temporary shutdowns experienced in the spring and summer months.
Cash flows from operating activities for the fourth quarter was also a record of $19.8 million up 26 per cent from the fourth quarter of 2019, and net income was $10 5 million.
Yeah.
Looking at where revenue came from for the year. This slide showed sandstorm sales and royalty revenues broken out by region and by metal type of Sandstorm continues to receive the majority of its revenues from the Americas with over a third of revenue coming from North America.
In terms of metal type sandstorm remains of precious metals focused royalty company with the vast majority of of revenue coming from gold and silver of producing assets.
Yeah.
Digging a bit deeper this next slide breakdown sandstorm is annual production by asset the amount of silver stream were the top performing asset, bringing in nearly 11000 attributable gold gold ounces.
'twenty 'twenty marked the first full year the <unk>.
On storm has received production from the silver stream under.
Under the stream agreement Sandstorm is entitled to 20 per cent of the silver produced at Yamana, Cerro Moro of mine for ongoing cash payments equal to 30% of the swap price up to an annual maximum of one 2 million silver ounces per year.
Cerro Moro did experience of the Cobra related temporary shutdown.
In the summer, which was reflected in the silver deliveries for both the second and third quarter.
The ore zone of mine with another producing asset for which sandstorm received its first full year of production in 'twenty and 'twenty.
Equinox gold commenced commercial production at the ore zone of mine in July 2019.
Sandstorm as everyone will recall has the 3% to 5% sliding scale and it's our royalty on or the Ona.
Dependent on the gold price.
With the stronger gold market this year of sandstorm royalty has been 4%.
If gold prices rise above $2000 per ounce. The royalty you will increase the 5%.
Two athletes to note on this slide of relief Canyon and featured on Ortega Sandstorm two most recently acquired producing royalties sales.
The only began receiving fixed deliveries from the relief Canyon mine in May and sold a total of 3819 gold ounces during 2020.
Food <unk> del Norte day reach commercial production in February of 'twenty 'twenty the.
The mine experienced the COVID-19 related temporary shut down at the end of the first quarter that lasted into July.
In the second half of 2020 Ruta del Norte <unk> produced 191000 ounces of gold and in December the operating Lundin Gold announced the plan to expand mine and mill throughput by 20%.
The expected to completed by the end of 'twenty 'twenty one.
With this in mind and no further operational and suspension of expected we're optimistic about the value of the this asset will bring to sandstorm going forward.
Finally.
I want to briefly speak the sandstorms cash position and some notable events that took place in 2020.
As Nolan has already mentioned sandstorm is the one of the best financial position it has been ever.
In 2020, Sandstorm received gross proceeds of over $70 million for the last of the Companys outstanding warrants. The proceeds from the early warrant exercise program in April were used to pay off the remaining balance on our credit facility the.
The final set of warrants expired in early November, making sandstorm, both debt free and warrant free for.
First in the history of the company.
We were also able to take advantage of higher gold and asset prices liquidating approximately 56 million of non core equity and debt investments in 2020.
As of the end of 2020, Sandstorm had approximately $60 million in non core equity and debt investments the Wii.
We can continue to monetize for future acquisitions and corporate development efforts.
Non stated sandstorm is forecasting attributable gold equivalent production to be between 52060 2000 ounces in 2021.
With the long term forecast of approximately 125000 attributable gold equivalent ounces in 2020 for.
And with that I'll turn it over day for further updates on our asset base.
Great. Thanks Stefan.
So if you are familiar with our investor presentation than you would've seen something similar to what we have on slide 18.
Since the start of sandstorm, we've been tracking the amount of meters drilled on the assets that we have streams and royalties on our team has compiled the data for 2020 and you can see that the previous for year trend continues with over half of million meters drilled.
The year being seriously disrupted by COVID-19, we still saw this increase of drilling in 2020 of 2019 and like previous years, we see that almost two thirds of that drilling was completed on producing assets you can see that reflected in the increased resources in one day or.
On edge of powder and others.
For the last five years now we've seen almost 3 million meters of drilling on our partner projects now I'm not exactly sure what the dollar number that this represents in terms of investment, but it's likely not far from of half a billion dollars of exploration work of sandstorm does not have to contribute too, but we'll receive the ups.
Right on.
This helps to illustrate the focus that we have on purchasing the assets that has the best chance to receiving exploration success.
Since the beginning of sandstorm, both Nolan and I have stressed the importance of exploration as the best value driving driver in streaming and royalty deals. When your portfolio has excellent exposure to exploration success, you were driving shareholder value forward.
On to fruit of del Norte Day, which is a great example of this like our investment in one day before it as soon as fruit of gone to production Lundin Gold has focused on growing the project in multiple ways.
Right going into initial production in 2020 during COVID-19 of being shut down for most of the first half of the year. They already have an expansion plan for the project in place and there has been reserve increased set of pads talked about just a few moments ago.
Lending gold is working towards an expansion of 20% for both mining and milling to be completed this year after producing 191000 ounces in the second half of 2020 of beating their guidance on tonnage throughput head grade and recovery Lundeen is expecting to see between 380000 of 420.
<unk> thousand ounces of production of 2021.
And on average of 340000 ounces over a 14 year mine life.
That's without converting any of their of million.
11 million tonnes of inferred resource that they are working to complete 10 million, sorry, 10000 meters of infill drilling of 'twenty to 'twenty one.
On top of the expansion program at infill drilling of prove that there is additional exploration drilling at other regional targets. These.
These are targets that have not been investigated for almost 15 years. The two first target's to get work on our Barbasco end points of Princess are both located on the Suarez pull apart basin. So they were looking for similar mineralization targets to what fruit. It is the initial budget is $11 million for <unk>.
<unk> 9000 meters of drilling and I can't wait to see what results they come up with on the project.
London has done a great job of getting this project type of going and our 0.9% Dennis our covers the.
The entire area, including all of their current exploration targets.
On Slide 20, we show one of our most successful assets in the portfolio in or Zona being our first investment when we started sandstorm alongside Central Atlanta. This project keeps on giving to us with guidance of 120 to 130000 ounces in 2021.
Our sliding scale royalty on this asset should provide us around $9 million in revenue this year of.
I'll remind you that our original investment in horizontal on 2009.
Project was expected to produce less than 90000 ounces per year for about eight years now in 2021, they're still over six years of life remaining and exploration keeps going strong.
Recently, the released some exploration results that are more regional based and target and also targeting their underground potential.
For near surface targets, they have begun drilling to the east.
Janet Papau and my coach. These are two areas that I stood on over 10 years ago with their chief geologist, who thought they may be the highest grade targets on the property drilling to date shows consistent ore grade intercepts from section to section and also some really remarkable holes like 17 grams of five meters and 80.
For grams over 21 meters.
A P. ABA the targeting is mostly directed to a potential underground mine, which 47 of the 49 holes that they have assets on hit significant gold grades on the long section on slide 21, you can see large consistent trends beginning to emerge in the deeper drilling under the current pitch.
Shell the mineralization is consistent enough and the grades of high enough to start looking seriously on the underground option, which is exactly what equinox is doing as it proceeds to a pre feasibility study in 2021 and is planning over 49000 meters of drilling for this year.
To illustrate the potential upside to sandstorm assuming of 2000 dollar gold price every 1 million ounces that orison of ads into its mine plan, meaning means over $100 million in cash flow to sandstorm.
That's what good exploration success does for shareholders.
So with that I'll pass it over to Lindsay the operator for Q&A.
As a reminder, ladies and gentlemen, if you would like to ask a question. Please press star one on your telephone keypad.
Our first question comes from Michael <unk> with H C. Wainwright. Your line is now open.
Hey, guys. Thanks for taking my questions on the congratulations on another pretty successful year in the door.
Our free trying times there.
You.
<unk> that you'd be willing to step into the market and the repurchase shares and interest of general your prepared remarks seem to be extremely focused on your balance sheet and uses of cash.
Most of that Ive seen before I'm, just thinking of low adhere are you essentially stating that loyalty right in the ore prices, where large scale acquisitions are not of sensible as they may be used to be and you were looking for alternate uses of funds.
Yeah.
Yeah. Thanks for thanks for the question, we're saying nothing of the sort.
I think the comments that I went through.
Emphasize that we are a growth company. We are focused on a growth company as many people know we got within inches of Campos.
Completing some deals last year that just for various things of that didn't materialize.
And and that's just sometimes happens and the nature of our growth business, where you're where you're swinging begun trying to grow in our pipeline right now.
The deeper in terms of large potential transactions than it's been in as long as I can remember.
And I do think we're going to we're going to grow in 2021 with acquisitions.
Oh, all not mentioned anything about the deal that you just talked about but the building on the last question of more importantly, your answer.
Should we be to see you do a transformational acquisitions say high eight figures low nine figures I mean, you could easily do.
On our plus million dollar deal by the end of the year.
And building on that whether the price that youre seeing for these types of royalties when compared with the 12 to 24 months ago. Thank you very much.
Yeah, I would say shareholder should not be surprised if we could do that.
In fact, I think they should hopefully expect that.
In terms of pricing of what we're seeing it really depends on the nature of the transaction were still.
We're working on some transactions right now that are.
We think there'll be if we can complete of over 10% IRR, but they're more in the <unk>.
Well below $100 million size transactions and Thats, when you get up into that two or three or four of $500 million per transaction that the IRR of do come down a little bit, but the asset quality and exploration potential of the assets goes up a lot too so there's a bit of a given take care.
And.
We're not sure which transactions are going to land yet.
Based on what we're seeing in our pipeline, we think Brunswick.
Yeah.
Excellent. Thank you very much I'll get back on queue.
Thank you.
Our next question comes from Matt Farwell with Roth Capital. Your line is now open.
Hi, Good morning. Thanks for taking my question I was wondering if you could comment on some of the news that were.
Reading about them.
Hugo North in Mongolia, I'm sure, there's not a whole lot you can say, but.
It does.
Is there any risk.
On timing of that project based on what you read in your knowledge.
Given your proximity to the project and and also is there any risk that the royalty terms could change.
Okay.
So I'll start with the second part of that first there's no risk of that I'm aware of that could cause the royalty terms change we've got on.
On a stream on the Hugo North extension on.
On trade joint venture grounds in the.
In terms of kind of set in stone and nobody really has the ability to unilaterally change them on us and we're not inclined to change. The reminder, so so those should stay the same with respect to the timing of the asset moving forward I think that theres always risk weighted asset is not yet fully complete construction.
There's risk to the timelines, having said that this asset is.
So critical and central to the proper functioning and funding of the Mongolian government debt.
Thing its forward momentum wood.
The bankrupt for the whole country. So.
The government likes to make lots of noise, but that's all it can ever be otherwise there'll be cutting out there on hits so.
I'm not too worried about long term delays just short term noise.
Interesting.
And then just to follow up on the M&A environment.
In terms of the types of projects you are looking at.
Are you finding given pricing that you may have to focus more on development of our exploration properties or do you still think that you can acquire properties with immediate cash flow.
Yeah. So both we are focusing on everything from things that are in production two development two exploration. What we are finding in terms of how we want to allocate capital. It's a priority right now to things that are in operation.
I would say.
The majority of the things that we think we have a reasonable chance of completing our things that are producing now, but we're not stopping looking at exploration. It's just not the priority right now.
Okay.
When you mentioned the large ticket price for some of those.
Ideas are transactions.
And when you look at your liquidity of lot of your liquidity or capital as you say is in the form of credit.
Is it of your intention to to use credit.
For some of those larger transactions or would you.
Or would you rely on share issuance.
Our plan would be to use credit first.
Got it.
Great. Thanks for taking my questions.
Our next question comes from John Tumazos with Independent Research. Your line is now open.
Thank you.
On.
Your website. It was 220 for producing royalties you have.
And then the development of advanced exploration of about three dozen projects.
Yesterday, Ken Ross classified logo of Mauritania has reserves of $6 4 million ounces.
During 2020 for output.
What are the two or three warmest.
Of those three dozen or so projects that you think will have a specific date.
And the timeline in the next five years.
Specific date and time line for the next five years of development projects that are not included in our stock the I'll hand that over to day one of them.
Yes so.
Local Marty certainly is one of those it's great to see that upgrade happen.
And Kinross really pushing that project forward.
So is that that's going to be I think of quite a big contributor.
Once it does come on line and its not currently isn't in.
Any of the discussion of our guidance or cash flow profiles that we may have illustrated in the past.
But there's also really kind of a few of the smaller ones. There's a lot of Canadian little Canadian assets.
That are in there, they're not huge contributors to it as well too but.
But they're either in a some kind of bulk sampling type of format.
Or also in.
But also in the immuno looking going through the feasibility and development and construction phases of course, another large one that we do expect to see more information on later on this year is that good Rica.
Which of course is that joint venture between Glencore, Yamana and newmont as they outline.
More details in the updated feasibility study.
On really what that would look like and of course, that's a huge contributor to us and that potentially happen sometime.
<unk> 20 of 24, 2025 timeline as well too.
So that's kind of some of the bigger ones.
That would have I think significant impact to them that are starting to firm up more serious states.
Front of them in terms of when we might actually start seeing production from them.
Thank you if I can ask another following up on the earlier question.
Your equity stake is 22% and entre resources.
Is that too much how do you expect to get out.
Share of game plan to swaps at.
For a stream of royalty bigger stream of royalty.
Do you see the entire company sold out or just some of it back into the stock market for a little profit.
And.
I have mom on its when I root for Rio Tinto the dynamite the project so they earn more on their copper assets in Utah.
Chile.
I hope before I Die one company dynamite the project when they're getting screwed over and so on screwy country.
I was just wondering what your game plan to get out of that one of those.
Yes, that's of Great question, I think that debt right now of the way. We're looking at it is that there are shares are fundamentally of deeply undervalued.
I would say that we probably think of the shares are probably closer to where two or $3 compared to the 50 cents theyre trading at so.
We're happy to own the shares maybe pick some more up in the market, which we do from time to time and then in terms of exit strategy of the way you win and Theres lots of different ways to win when you buy something that deeply undervalued you can you can.
Can either sell to potential strategic acquirer you can.
Wait until the project is more advanced in the market is paying more reasonable per.
Rice and you can liquidate it into the market or you can just continue the holds I think.
On a lot of people don't realize.
For the company like entrees that once they're round is being mined on the should cash flow of close to $100 million of year every year.
Non storm owns 22 per cent of that company.
The force of dividend.
$22 million of year to our shareholders.
It's a mine the should last several generations and.
And what's the $22 million of year Forever worth.
It's a lot more.
The $50 million, we pay for the share so.
If I could impose with one last one.
The slide was 30% of your market.
The market cap is capital available for acquisitions.
Mike frightened some investors.
We don't know what we're buying is the corporate asset mix has kind of changed the cycle.
The purpose acquisition Corp.
Some of your recent investments are in Mongolia for.
The fast Cherokee.
Is it too much to constrain your next investments to the Americas or first world.
Given that you have.
The number of recent investments there and other places I was trying to get the fund manager and of your stock of couple of days ago, and the Guy was upset that at the time you put almost half of your assets in the Marianne is for modest.
So I think the answer to your question is it depends on the specific transaction.
We're looking at places like Burkina Faso.
Less than 4% of our NAV when.
When people make statements like we put half of our value into hot Martin.
It's just sort of an acre in the statement because yes, it will be half of our production.
But we are a $1 $2 billion market cap company that bought that investment for $180 million.
No.
For.
15% of our market cap of about 50% of our production.
If we can do deals like that that are that accretive to shareholders over and over and over again, we will do it and.
And so it just depends on what deals are in front of us I think that we have.
We've shown over time that we're willing to be patient and methodical and thoughtful about how we grow the company and what we buy to make sure. It is intelligent and accretive to shareholders and we'll continue to do that and if for the next best deal happens to be in Canada, well, we'll do that deal in Canada.
Yes.
We're going to go where the smart deals are.
So as I look at your slide.
What's your output slide 15 by mine of revenue by mine.
It's the seventh largest mine relief Canyon.
In North America.
The black Fox and the 10th 11th and 12 for smaller mindset might be closer to the end of life.
So just kind of your first six mines are.
Yeah.
For in Latin America, two in West Africa.
It wouldn't hurt to have something big in the asset mix of years ago.
Yeah, I definitely do not disagree with that.
Thank you I'm a shareholder good luck, sorry of the past year.
Great. Thanks, John.
And our next question comes from Josh Wolfson with RBC capital markets. Your line is now open.
I'm just wondering for Santa Elena.
When the Ameren Tenniel deposit comes in is there any sort of visibility on.
How that's going to affect the the.
The stream payouts in debt and what that looks like longer term.
Yes, so with the of Santa Elena transaction that we originally put together we did put a displacement of agreement in terms of displacement of ore going to the mill.
So.
We have to have those discussions with them, obviously as we get into 'twenty and 'twenty one.
I'll be more emphasis are you really kind of finally, starting to see some type of war the least development of work coming from other tenniel looking to get process at that central in the mill.
So that will become a point of discussion I think this year with the.
With first majestic.
As to how that displacement clause works in that original transaction that we did with them.
Okay.
And then as it relates to see of five Madden.
So we're looking for an update on the EIA status as well of the feasibility study.
Is the is the feasibility study linked to the I guess delivery first of the EIA.
Or are these two independent items.
So those two are independent items.
The feasibility study of and it's very very advanced stages.
The initial application for the day has already been submitted and then the final EPA is expected to be submitted here in.
In Q2, our share.
The slightly before that so.
I would we're hoping that in Q2, both of those catalysts will happen.
It's been a process of really Lydia.
Prioritizing the EIA from their perspective.
The U S operators of the project really getting to that EIA process getting that the final approval on it has been the priority for them as opposed to completing the feasibility study.
Great. Those are all my questions. Thank you.
Yeah.
There are no further questions in queue at this time I will turn the call back over to Mr. Watson for any closing comments.
Thank you Lindsay and thank you everyone for phoning into today's call and as always we're around and if you have any further questions feel free to contact us here.
Here at the office and we'll be happy to get back to you. Thank you.
This concludes today's conference call you may now disconnect.
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