Q3 2021 Osisko Gold Royalties Ltd Earnings Call
Good morning, ladies and gentlemen, and welcome to the Ultra Cisco Gold royalties Q3, 2021 results conference call.
After the speakers present.
Presentation, we will conduct a question and answer session if you'd like to ask a question. Please press star followed by the number one on your telephone keypad. Please note that this call is being recorded today November 10th 2021 at 10 am Eastern time today on the call. We have Mr. Sandeep Singh, President and Chief Executive Officer and Mr. David.
Then chief Financial Officer, and Vice President Finance I would now like to turn the meeting over to your host for todays call. Mr. Sandeep thing plus.
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Okay.
Great. Thank you operator, good morning, everyone. Thanks for joining us for an update on our Q3 financials really good quarter for us.
Not getting tired of saying that so looking forward to update you on our developments over the course of the last quarter and then looking forward.
As we do I'll point out that there is a presentation on our website. If you don't already have it and they'll be walking you through that Fred.
Plenty else lives as we go so please make sure you pick up that presentation.
Starting on slide two I'll also remind you that we'll be making forward looking statements as we give you this update.
So please please be mindful that car.
On slide three just starting off with some highlights on the quarter.
And as you already know given that we pre released these numbers just over 20000, geos gold equivalent ounces for the quarter.
Which led to a record in terms of revenues.
And cash flows.
A few million dollars and 44 million, respectively for the royalty and streaming segment of our company the.
The cash margin stayed very similar 93% or 97%, excluding renard so no change in that high margin business.
And then.
On the net earnings.
One 8 million Canadian that's obviously as a result of the impairment on the Cisco development side of Bonanza ledge too.
A reminder.
A reminder, on that front that the purpose or one of the primary purposes of that B L. Two component, which is not the primary caribou asset is for training.
Largely for the remediation of the pack bio that sits on the surface.
And it's an area that can be worked awhile to commission the mail, while the larger project cannot be touched in the permitting process there.
It annoys, there, but that's a more not more than that.
Adjusted earnings from the royalty segment of $23 3 million Canadian or 14th share.
As you know we increased our dividend.
A quarter ago to five five cents.
And pay that dividend on October 15th we've also reissued that dividend for the next quarter in the same way.
In terms of the some acquisitions, maybe I'll just jump around a little bit.
Apart from the dividend that we've also been more active on our end said over the course of the third quarter buying back one 7 million shares at an average price of 15, we've been saying this.
The disconnect if it gets too wide between our fundamental value in our share price, we would take advantage of it and we did so more aggressively in Q3, and we will look to find.
If if we're giving more opportunities we'll take them in the future.
In terms of.
The new investments, we acquired as you know that 275% royalty on the <unk> project in Brazil, which is now being pushed forward by G. Mining very aggressively we'll talk about that that does have a buy down right, which you could take it down to point, 75%, which is how we thought about it and we also posted a quarter concluded.
Transaction to buy.
Small portfolio of assets from Barrick.
With our flagship asset in that that's moving forward a high grade asset.
Then I will update you on just on the next page.
So a productive quarter for us and a lot of good things happening throughout the portfolio that we'll talk about through the rest of this presentation.
On slide four I won't go through it because we already have on the T side I think we talked about this last quarter. There was a subsequent event.
But generally.
Good progress from G mining, we're expecting of fees in the early part of 2021, sorry, 22 forgive me.
Construction financing to be kind of sorted out in H, one with a construction decision expected in the second half of next year, So fast tracking and we look forward to that news flow as well as exploration upside coming from that group.
On the Barrick portfolio, the ask that I was referring to.
It is a 2% royalty on the West Kenya project, that's being operated by Shantha gold.
A very high grade very high IRR project with a very capable operator in the region, who has the capacity to build a mine and this is a core part of their growth strategy. So.
We look forward to the level of emphasis thats going to be placed on this asset with <unk>.
You'll notice there's some some numbers there in terms of current expectations of a high grade 105000 ounce a year type mine for a long mine life. It also sits in a very prospective large land package about 1200 square kilometers relatively untested with.
With some of the best real results coming out of it anywhere in the sector at this point.
Intervals, including four meters of over 700 grams six meters of over 200 grams per tonne. So.
That's another kind of small single for us, but one that we think could add a lot of value in the years to come.
Yes.
On slide five we touched on it earlier in terms of our returning capital to shareholders. We have a very strong there.
And the yield of one 4% we've returned capital to shareholders every day since the existence of the company.
And that answered just update between the dividend and the AD said that this year, we've returned more capital to shareholders than anybody in our peer group.
You put the two together.
And that will remain a focus for us, but our high margin business allows us to do that no matter whats happening in the commodity cycle, obviously, great day today, but irrespective of the gold price with a 97% cash margin business. This can be a go forward factor in our company.
On slide six you just see the production over the quarter by asset.
I'd say the producing asset base is performing extremely well, they're positive catalysts across the board and we'll touch on some of them in the subsequent slides.
Also worth pointing out on a day, where gold is having a bit overrun and that we provide gold and silver is probably the highest.
Precious metal waiting in our peer group, we believe are amongst the highest at a point, where we think <unk> has an opportunity to really outperform after being range bound frankly.
Either down are range bound for the last 12 months, obviously, the CPI number out of the U S is not lost on anyone today I think it's more the point out that it's not only the overall CPI number high the core number is also high in and I think the inflation story is broadening.
And I think that rhetoric about it being transitory.
For much of 2021, they are starting to feel more and more all up. So we think there's a good backdrop for gold amongst that backdrop, we're gonna be delivering more and more gold ounces at the right time, we believe.
Move forward too.
Forgive me it says.
Slide seven for me again, but the Canadian <unk> slide.
Obviously this is our flagship asset it's a phenomenal flagship asset.
On the operating side it continues to do.
Extremely well obviously the catalyst that most people are watching for is the underground story to develop.
In terms of the end around the actual development work that's progressing ahead of schedule.
Infill drilling routinely is returning why is very high grade results for east Goldie.
Down two significant depth.
The exploration or the extension work of East Goldie is also coming in extremely nicely.
Promising with some grades down to two kilometers of depth and a kilometer and half from the closest resource ounce. So a lot of potential for upside there based on the disclosure from the operators, we expect a healthy.
Resource increase in early 2022 and look forward to that.
So that news flow apart from what I've already talked about but there's also other components of potential growth.
Portion called Odyssey internal.
Which if you look at the bottom left here is kind of labeled as that pour free those poor pre rock sitting between Odyssey south to north.
Those have had.
Strong intersections as well early days, but that could contribute with more drilling overall right. Now I believe there are 15 rigs active it's been 95000 meters drilled in the first three quarters. So we expect that momentum to continue and as it does.
It hasnt been any anything any step backward on that story, it's only gotten better as the operators focus on it.
So fantastic place to start on slide eight with respect to other significant assets at Mentos and we've talked about this before.
<unk>.
The.
The Debottlenecking project, if you will of the expansion project is nearly complete.
Giving us a 99% kind of pre commissioning progress.
The overall completion of that is still expected in the first quarter of next year.
Point, we start to see a ramp up in ounces there expecting deliveries in the first full five years of post expansion to average one 3 million ounces of silver so significant increase for US frankly, one of the better copper intermediate companies in the sector.
We expect there's a transparency increases on this asset and as the ounces frankly start coming out of the assets people will start to appreciate this mine for what it is and our silver stream for what it means to us.
Yeah.
At the Eagle mine in for Victoria, That's really good news as well great results frankly in terms of the ramp up it produced 50, almost 56000 ounces in the quarter. So a big step up versus Q2, so it's nice to see the ramp up going as well as there is obviously there is still focusing on exploration, but we.
We expect that effort to ramp up as well.
Poor choice of words that effort to accelerate as the ramp up starts to get to steady state.
And are keen to learn their plans to push the mind, even further to a 250000 ounce a year type level in the near term.
So excellent update on that front.
On the next slide slide nine just a couple of others and we're touching on not all of our assets, but picking out some things that we think are salient.
Very happy to see Minera Alamos start to pour gold or carbon to pour gold off of.
So heap Leach in Mexico, where we have a 3% in ESR, we expect that.
Is it scale up operations as they go at full capacity for a full year.
<unk> for us.
It's a brand new asset it will mark our 18th producing at that asset and look forward to the success of that.
That endeavor.
On the CV side or a 3% royalty there has been an important one for us for a long time.
Nice to see the record level of throughput they're in September trending towards an expectations that they will trend towards the higher end of their guidance.
And then even more importantly, the exploration results that they've been talking up in the near term.
Look very promising and.
And we look forward to an update on that front in 2022.
GAAP hanging wall is kind of the next phase of production and you'll notice. There are couple of bullet points of intercepts that bode extremely well so positive results not just on that ore body, but across all of the ore bodies that makeup the CV complex.
And look.
And look forward to more information on that carrying into the next year.
On slide 10, and updates on the assets that are within a Cisco development Corp. So caribou in San Antonio.
Caribou I think at the end of the quarter they were up to 152000 meters of drilling.
That gives them enough information to put a pin in it and now work towards a resource reserve update towards the end of the year.
Early next but that type of timeframe and still tracking for a feasibility study in the first half of 2022. So those will be the major milestones there in the interim they've had good success from a permitting perspective, including getting an underground bulk sample permit account mountain, which is not necessarily easy to do when you are in the process of a broader permanent cycle.
So that shows the strength I believe of the relationship that they have with.
With the regulators.
So that's work that they can achieve in 2022, which will give them a head start in terms of information and just a head start on on the asset overall.
So a big large large catalysts on that story expected in 2022, along the same timelines that we've already talked about.
San Antonio.
It was almost 23000 meters have been drilled.
We expect.
Positive potential increases on both the oxide and sulfide level of that story.
<unk> should we expect that shortly so it'll be good frankly for us and everyone to see more visibility on that asset we're looking forward to that event.
And we think as they continue to drill the upside potential there both in oxide and sulfide is quite high. So we look forward to that story taking shape.
Here in the very near term in the meantime, they are putting the existing stockpile on back on on each.
With the newly constructed.
Constructed and completed and so we look forward to a small amount of production from that stockpile, which will be helpful to the overall, our overall story.
Yeah.
A couple of other development assets worth touching on today.
First upper Beaver on slide 11 here.
The drilling there being done by Agnico is continuing to prove out theres been some very long high grade runs in the infill program that theyre doing and potentially expanding it as well.
So so we expect that.
Frankly expect a pretty significant update overall in 2022 with respect to drill.
Drilling in resources, the feasibility the plan and the timeline overall for development.
Just recently a project description was submitted in September which described the 10 to 15000 ton per day operation with a 16 year mine life, So pretty important asset. It's one where if you go back to the commentary from the get go they've been talking about this for some time as being a mind quote unquote a question that's been timing and when do they phase it in.
I think with the merger with Kirkland Lake.
This is one of the areas that <unk> been talking up about potential synergies.
So that has the potential to fax track things not only for upper Beaver.
But also for other assets like AK amalgamated Kirkland, where we have a 2% royalty as well there are 700000 ounces. There that are sitting within 300 meters of the underground development of Makassar. So those.
Prior we're probably obviously not a standalone asset but cannot come into play for us.
We certainly hope so and we look forward to hearing more about how that all fits together over the course of next year.
And then back 40 as an asset.
Run by a killer, which has gone through some permitting hangar hiccups because.
Maybe not the right word, but some permitting challenges.
We're happy to see kind of a revamped determining process underway, one with a much smaller footprint.
Smaller open pit bigger underground, which served there is permanent.
Process well.
And frankly also happy to see gold resource Corp, the larger producing entity come in and see the same thing that we do at a killer does in terms of the potential there.
So having a larger better capitalized producers see that value in back 40, and the value and the work that the Aquila team has been doing is a positive step and really really big step forward in terms of this significant stream for us. So we look forward to that transaction being completed the permitting work coming out with a positive result, and then hopefully this becoming.
A core part of gold resources growth strategy.
For the second half.
On slide 12 is a slide that we show more routinely so I won't go through it.
In detail just start growth profile, a lot of organic growth on the comp I guess is the summary of it.
Some of it hits in 2022 and 2023 there are other chunky assets are moving forward more to the middle of the decade.
But they're generally assets that matter. These are important assets of the sector run by incredible groups.
Excuse me and never as fast as you like but they are on the come even our long term assets are benefiting from significant catalysts in progress. So you know when you look at this page I think we've got a decade of growth in front of US that's in strong shape.
And look forward to seeing that develop over the years.
So I'll pause, there and hand, it off to Fred.
Who will give you a little bit more color on the actual financials, and then I'll be back to wrap it up and for the Q&A.
Thank you Sandeep.
I was wanting to reduce methane for electrical don't have so I don't know because it touches wasn't domestic good morning, everyone. Thank you for joining US today Q3 was not too different from Q2, New records reach with strong deliveries of gold and silver.
Which led again to record revenues and operating cash flows from our royalties and streams business and if we go to page 13 of the presentation. We recorded record revenues of 50 million compared to $41 2 million.
In Q3 of 2020, which was of course impacted by the Covid pandemic. We also had offtake revenue was in 2020, which is not the case in Q3 of this year as our last because you were seeing uptake once converted into a stream last April.
Cash flows from operating activities were $41 1 million on a consolidated basis for the royalties and streams segment alone cash flows from operations reached a record $44 1 million compared to $37 3 million in Q3 of last year.
If we go on page 14, we present, a summary of our earnings and adjusted earnings consolidated net earnings to a Cisco shareholders was $1 8 million or <unk> <unk> per share compared to $12 5 million in 2020 or <unk> <unk> per share the lower net earnings as mentioned by Sandy points due to the impairment charge.
As recorded by a physical development of $33 3 million on a consolidated basis adjusted earnings were $17 9 million 11 cents per share.
Which includes adjusted earnings of $23 3 million or <unk> 14 per share from the royalties and streams segment and an adjusted loss of $5 4 million from our Cisco development or <unk> <unk> per share.
On page 15, we have a summary of our quarterly results with additional details for the royalties and streams segment, which includes gross profit of $33 8 million compared to $30 8 million last year.
And as we have previously mentioned in operating cash flow was $44 1 million were generated in Q3 by one of them.
Those teams training business.
Total year to date of $118 million.
On page 16, we have a breakdown of our cash margin for Q3, and the first nine months of 2021 and two or three of this year. The cash margin on our royalties reached $34 4 million the cash margin on our streams amount to two.
$12 1 million for a total of $46 5 million.
This brings the total cash margin for the first nine months of the year $240 million.
And on page 17, you'll find a summary of our financial position.
Our consolidated cash balance was honored $52 million at the end of Q3.
Including $80 million for Cisco gold royalties and $72 million for Cisco development.
Cisco gold royalties out investments, having a value of $169 million at the end of September in addition to our investment in our fiscal different upland valued at over $500 million.
Death was stable and that's $405 million with over $535 million available under the credit facility, which as you know was increased and extended last July.
We have also acquired one 7 million shares under our CIP program for $26 million in Q3 for a total of $2 1 million in 2021 or $35 million in.
In summary, we had record revenues and operating cash flows in Q3 as a result of strong deliveries in gold prices.
And with decrease in gold prices and silver prices. This morning.
<unk> increased inflation in the U S. We can only be optimistic for Q4 as well.
I'll now turn the call back to Sandeep <unk> for closing remarks and questions.
Thanks, Fred and we will open it up for Q&A here any second.
Just been brought to my attention that perhaps there was a delay of about 10 minutes for some people entering the call. So our apologies for that.
Hopefully we can make it up in the Q&A, if we need to but rest assured.
I said some great things in those first 10 minutes.
Other than what you probably are but it is a simple quarter for us again and the operations are working extremely well so I apologize for that technical glitch.
Hopefully that won't happen again in future, but operator with that I think we can open up.
For Q&A.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Your first question comes from Josh Josh flows some from RBC capital markets. Please go ahead.
Hi, Josh can you hear us.
Josh Your line is now open.
Start with that as an issue on my end.
We see with the permitting scheduling.
Outlined in the in the release for <unk> San Antonio.
What should we expect in terms of Timeframes for I guess initial kind of real mining and heap leach processing from that deposit and then overall hottest how does permitting look there and then schedule them for production.
Yeah, Good morning, Josh.
I think things look frankly quite well, we've always been a little bit worried that with COVID-19, we might see undue delays.
So development might see undue delays there in Mexico. So far so good so fingers crossed that that continues and there is no kind of.
Bureaucratic delays.
Important to see that the stockpile.
Got permitted and is nearly complete so that work is ongoing so there will be a little bit of production, but in terms of the main production that you're referring to from CPG. The hope is that.
Permit can come in we're saying first half, but the expectation is hopefully early early part of next year and then that's the gating item once that comes into play.
If it does come into play in that time horizon that we can expect production in 2022, obviously if it comes in earlier hopefully we can get a little bit more in but thats the kind of bounce that we're working with so it'll be a little bit.
Uncertain until the permit comes in and hopefully that.
Once it does it'll be a little bit more clarity on how much of a year, we can catch in 2022, and if we don't catch.
The year, we're expecting appointment to frankly, just flows into 'twenty three but overall I think we're happy with the progress they are happy with the.
Exploration drilling that we're seeing will be nice to get an update out there for everybody.
And in the Grand scheme of things as far as mining goes I think it's all pretty pretty near term.
Okay. So it sounds like.
That would imply if you get that puts you permit in the first half of the year you can get production that would imply.
Say within a six month timeframe from permitting receipts you'd be able to take.
<unk> production is that fair to say.
Yes look if it's the very very last day of the first half I think that's that's optimistic but I think where we're <unk>.
Casting a pretty wide net when we say the first half of the year. So we'll see how that.
How that evolves and hopefully it can be sooner or later and we'll have the we'll have visibility on that I think as we sit here in November 10th its not that far away in terms of getting better visibility on the timing.
Okay, and then for Mentos.
So if commissioning is happening in the fourth quarter.
Should we expect maybe lower production in the near term as maybe there is some operating interruptions.
Before some improvement next year and then can.
Can you remind me what the typical delay is between.
Production at the site and when.
Cisco receives that output in terms of revenues.
I'll ask I don't have that second answer for you off the top of my fingertips Fred.
I'll answer the first maybe you want to give that some thought but I think overall, we don't in our conversations with the team over at Mentos expect the final kind of tie in if you will to to cause much of a back step in terms of production that's up the what we've been told to date and as you can imagine it's a big project, it's not like it happens that the salt Lake flipping.
On a switch they've been doing it as we speak as there are 99% complete on pre commissioning, obviously certain things are already kind of coming into the fold. So.
Time will tell.
It'll happen pretty quickly, but so far we do not expect there.
There could be a step backwards same token is it going to it's all it's not a light switch the positive either so it'll take a little bit of time to ramp up.
So we're not expecting to get the full benefit of the.
The year in terms of maybe being at one 3 million ounces, but hopefully better than we are and then some work significantly towards that mark. So that's how we think about the <unk>.
Mentos and tried to putting you on the spot if we don't have an answer we can get back to you with one Josh but do you have a sense.
And in terms of the the timing delays on fundamentals ounces.
Yes, usually.
I would say, it's a one to two months its not more than two months.
Okay. That's great and then maybe one final question just on the on the capital allocation side.
The company has been pretty active on its buyback and most of the acquisitions in terms of.
Royalties and streams have been smaller dollar amounts.
And there is a reasonable sized that position, but there is obviously a lot of financial flexibility. How do you see the company balancing these different elements and perhaps what's the company's appetite to transact with streams versus buying back stock.
At current prices.
Yeah.
Look I think you said you used the right word it's balance we feel like we have the financial flexibility to do all of that.
Obviously, if we see the right deals we can reach for them, we have a lot of room on our credit facility. We upped it intentionally we increased the facility and reduce the cost of it that provides us kind of a backstop for the convert that comes due at the end of next year.
But when I said it in early 'twenty, two that we would be disciplined.
At a point in the cycle where.
There were a lot more options for the sector in terms of how to finance itself and we were and we have been and we will continue to do so.
We don't have to chase growth at the same way as others, perhaps we have a lot of it internally we're still active.
Looking at things and.
And we've still been able to add good quality assets, along the way without overpaying for them.
Assets adult need spot prices to be viable so.
Where we sit today, though I would say with commodities most commodities are starting certain commodities, having been flat to down with the equity markets a lot more.
Discerning if you will I think theres, a greater need for royalty and streaming capital. So if we can find the right assets that fit our our objectives, we are happy to transact in bigger and bigger sums but.
That's how we're managing it.
Balance when the when the stock just gets ridiculous and chief who will step in I think we can do a little bit of all of it frankly, and we will keep reassessing that balance as it changes and you can imagine it's a pretty fluid.
Situation, if you see something really big that you want to do obviously that changes things, but for now we're pretty comfortable that we have the ability to do so.
Do everything we need to with our balance sheet.
Great. Those are all my questions. Thank you.
No problem to us thank you.
Hey, Danny slag to ask a question press Star then the number one on your telephone keypad. Your next question comes from Kerry Smith from Haywood Securities. Please go ahead.
Thanks, operator, Sandy just for <unk>.
Just to follow up on Jonathan's question would it be reasonable then to assume the full year 2023 would be at the $1 3 million ounce straight on the silver deliveries then would that be what youre kind of expecting I guess on the ramp up.
Did you say 2023 tiered.
Yes.
Basically nine months or 10 months to ramp it up through 2022, and then a full full run rate in 2020 through calendar year, Yeah, Yeah, no absolutely I don't see why that wouldn't be the case, obviously a lot can happen between now and then but it's been a fantastic performer for US I think the expectation is frankly, hopefully we can have a long way towards that.
Even in 2022, I think it would just be premature.
Premature for me to say until they get the.
They get the system kind of booted up.
But certainly we have been impressed with the operational capability of that group.
They hit it out of the park every chance they get so.
Nick.
Getting ahead of myself, but certainly we are expecting.
Significantly increased year in 2022, and hopefully with that behind them no there'll be humming in 'twenty three.
And on back 40 are you anticipating that gold resource Corp will update that feasibility study looking at they're talking about a smaller footprint I presume they bring to us that the feasibility to look at a smaller putting a bigger underground operation, but you know what their plans are.
Yes, so yes, yes to all carry that that is the path.
There was a new feasibility in the works with <unk> on a standalone basis, our technical team was providing some oversight to that process. We've been able to do for some time that smaller open pit and a bigger underground there makes more financial sense, frankly, and it certainly helps on the permitting side potentially not meeting.
Not impacting the wetlands that worthy issue last time around at all so.
We think that makes sense.
In every way and we're happy to see gold resource.
<unk> and his team there to step in and see it the same way as we all do so they're essentially picking up that feasibility and progress intend to completed obviously and then use that as the backdrop to go back to the permitting cycle hopefully a cycle that will be shorter. This time round is what we're told.
But that's the gating item there, but I think there is a really good project there and it's one that they are eager to push forward.
And so are you thinking of the feasibility or are you expecting the feasibility would be complete by the end of next year, then or earlier than that.
You're testing my my recall now carry but I think the answer is earlier than that it's something that was underway.
As soon as kind of the permanent hit a snag this year frankly, a lot of the work and the thinking had already been done by the team. There. So yeah I wouldn't expect it to take all of next year I, just don't awesome top of my head to remember the exact timeline, but it's.
I had to guess I think we're thinking kind of certainly kind of middle of the year, if not maybe even sooner.
Okay, because I would have to occur.
Correct.
My recollection that they need that updated feasibility before they can go back into the permitting cycle, though correct.
Yeah look I think that's absolutely fair I mean, if youre going back to the permitting cycle, you need to kind of to show them what the different.
The new project looks like so that's why I think that the timeline for that feasibility is actually quite a bit sooner, but I just don't have it at my fingertips right. This second but yes, they will need that fees to go back through the permitting cycle.
Okay got you and then just last question quickly on Renard.
Based on the quarterly average carat values that you're realizing or they're realizing.
It would seem that that operation is is looking significantly better and I'm, just wondering when youre going to bring it back in and start receiving your geos from from that operation.
Yeah.
Yes look things are going well there from a diamond price perspective, we didn't put it in the press release. So if you if you didn't.
Catch it in the MD&A.
Last sale I believe was 104 U S and change.
Frankly for a smaller set of diamonds are not as good quality. So pretty darn. Good result, the company is building up some cash.
It hasn't been for a little while so that's all positive.
Renard is something we've been working to get back to get value back on for some time.
Currently as you pointed out I think are as you allude to we're distributing our stream proceeds back until April of next year.
So that's something we spend time on Gary absolutely and we'll come back to you in the market. When we have a better a better solution there for us, but as I said really positive results things are looking better there than we'd expected.
And we will but the purpose of us kind of.
Sticking around in that private co was to get back to our stream value and Thats our objective.
Okay, but that youre going to stick to April 2022, timetable or just to keep reinvesting the cash or I guess not.
Not not necessarily it's just that the marked us there right now.
And.
Having those discussions all the time really.
But obviously that.
Every sale has continued to bolster the treasury and so we're having those discussions all the time.
Okay. Okay. That's great. Thank you very much.
My pleasure Sir.
And your next question comes from Ross Carden from Polygon. Please go ahead.
Hi, guys.
Yeah, just one for me on the Diamond prices.
The commentary in the MD&A is that more quality driven or market driven because it looked like a pretty healthy increase.
I'm just trying to put it in context with what we see from other diamond producers.
What you've seen kind of smaller well this looks like a pretty big jumps.
We also run but wondering if you have any color on that.
Yes, Hi, Ross.
It's the quality in fact, the quality of Renard Diamond Hasnt markedly changed in fact, if anything in that last sale as I pointed out maybe not well.
It was worse at worst batch if you will.
So it was nice to see the uplift even with that.
That that backdrop, so I think it is really a market.
Packed in that scale of diamonds in that in that band of diamond quality and sizes.
I think now we are formally seen the last of the Argyle batches hit.
Which is a set of diamonds.
Very comparable so I think I think there's a bit of that production that stopped but I think.
But I think we're seeing the last batch of this kind of hit not so promising.
That market is strengthening the way it is.
Yes.
Okay. Thank you.
No problem for us.
And there are no further question at this time I will turn the call back over to the presenters for closing remarks.
Thank you operator, and thanks, everyone for taking the time again, our apologies if you missed out on the front bit. If there are any kind of further burning questions. You can reach out to us anytime we're very proud of the status of the company right now proud of the quarter proud of the asset base happy to talk to you about it.
And time.
And with that maybe.
Maybe just one small.
No.
Zero around this time Remembrance day.
So on behalf of our whole team and obviously, everyone listening I am sure. We thank those who have fought and those who continue to fight to defend our way of life.
It's easy to get bogged down into your own issues, but hopefully tomorrow during that moment of silence people take a second to focus on the bigger picture, so stay healthy be well and enjoy the positive the good day. Thank.
Thank you everyone.
This concludes today's conference call you may now disconnect.
[music].
The House has ended this call goodbye.
A question so it looks.