Q4 2021 Franco-Nevada Corp Earnings Call
Good morning, ladies and gentlemen, and welcome to the Franco Nevada Corporation 2021 at year end results Conference call and webcast. This call is being recorded on March 10 2022.
At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session, where you may ask questions through the phone line or webcast if.
Joining by webcast you may submit written questions for the Q&A session at any time during this call.
If you require assistance during this conference. Please press star zero for operator assistance and I would now like to turn the conference call over to your host Ms. Manav, you've checked Vice President of Finance. Please go ahead.
Thank you Pam.
Everyone. Thank you for joining us today to discuss Franco Nevada's 2021 year end results.
Accompanying this call is a presentation, which is available on our website at Franco Nevada Dot Com, where you will also find our full financial results.
The presentation is also available to view on the webcast.
Paul Brink, President and CEO of Franco Nevada will provide some introductory remarks.
Followed by Sandy Gardiner, Chief Financial Officer of Franco, Nevada, who will provide a brief review of our results. This will be followed by a Q&A period.
Our full executive team is available to answer any questions participants may submit questions by telephone or via the webcast.
We would like to remind participants that some of today's commentary may contain forward looking information and we refer you to our detailed cautionary note on slide two of this presentation.
I'll now turn the call over to Paul Brink, President and CEO of Franco Nevada.
Thanks, Bob and good morning.
I am delighted to be reporting Franco Nevadas best ever annual results, both topline and Bottomline.
Our diversified portfolio served us well with good contributions across precious metals energy and iron ore.
Arriving at 27% increase in revenue to $1 3 billion.
Precious metal growth was driven by an increased contribution from corporate Panama.
<unk>.
The first year contribution from the <unk> acquisition.
Iron ore prices spiked during the year and we generated strong revenues from our iron ore holdings.
Energy prices recovered from their pandemic lows in 2020.
That along with the newly acquired Haynesville natural gas royalties, so our energy revenue more than doubled.
The benefit of our topline business as most of the past during periods of cost inflation.
High revenue growth translated directly into expanded margins and record earnings.
Our efforts on ESG continues to be well received.
We recently had a top rating reaffirmed by sustained analytics.
Once again highly ranked in the globe and Mail's annual governance ratings.
We also made progress on our diversity goals in 2021 and.
And through promotion of increase the diversity of our senior management.
The growth in our business prompted our 15th consecutive annual dividend increase announced this January the <unk>.
Six 7% increase takes our quarterly dividend.
232 cents.
Per share in U S dollar terms.
Our board also moves their annual dividend review earlier in the year. So the increase for the first time apply for each of our four quarterly dividends this year and effect of 10% annual dividend increase.
Turning to outlook.
It goes without saying with the terrible war in Ukraine.
Markets and commodity prices are very volatile and there's a wide range of revenue outcomes.
After the 27% growth in 2021, we expect a slightly lower production profile in 2022.
The outlook reflects an expected lower contribution from Guadalupe.
Normalized grades at <unk> and a dip in the grade so that Mackay for the year before recovering again in 2023.
At the same time prices for gold PGM nickel energy in iron ore, where currently all high and if sustained will boost revenues for the year.
We expect our growth to continue in 2023 with the largest driver being cobre, Panama first quantum plans to expand the mine from the current 85 million tonne per annum and achieve a 100 million tonne per annum by the end of 2023.
We're guiding to roughly 10% organic growth in our business by 2026% over 2021 levels.
With a similar commodity mix between precious metals and diversified over the period.
Growth will come from mine expansions and new mines.
Expansions I expected, a detour tasiast, Stillwater, and BIOLASE iron ore operations, along with that at Cobre Panama.
Of the new mines is expected to contribute so large northeast sequela and greenstone already under construction.
Strong commodity markets inevitably drive organic growth in our portfolio, along with a deep portfolio of royalties on gold exploration properties.
Have royalties on what I would likely some of the next generation of copper and nickel mines.
Our business development team is very active principally with the financing of new gold mines, but also on diversified assets.
To wrap up I'm proud of what our team has achieved.
<unk> in yet another record year that builds on the track record of Franco Nevada.
Over to you Sandy.
Thanks, Paul Good morning, everyone.
As mentioned by Paul Franco, Nevada ended 2021, with a strong fourth quarter, resulting in record financial results for the full year.
Our royalty and streaming portfolio continued to perform well with the company benefiting from its asset and commodity diversification during the year.
As you turn to slide three you can see how the company performed against the guidance that was issued for 2021.
The initial guidance provided by the company for the year was 555000 to 585000 Geos for the mining assets. The range was increased and then narrowed as the year progress with our guidance in November being 590 to 615000 Geos sold.
I would just say that the company achieved near the top end of this range with 610981 Geos sold for 2021.
With respect to our energy assets the company had guided to revenue of $150 million to $135 million for the year using a $55 per barrel <unk> oil price.
As you know energy prices rebounded strongly in 2021 from the lows of 2020.
We increased our guidance a number of times during the year with the most recent period 195 million to $205 million we.
We are pleased to report that our actual energy revenue for the year was $210 million exceeding the top end of the revenue range.
Okay.
As you will have seen with our press release issued yesterday, beginning in Q4, 2021, and going forward, we will be including energy revenues and our gold equivalent ounce total.
We believe this provides a more comprehensive measure of our business and would be useful to investors to evaluate the full scale of our portfolio.
On slide four we highlight the gold equivalent ounces sold which does include energy Geos for the last five quarters as well as the previous five years.
The portfolio has performed well with overall growth for each of the Timeframes presented.
The company sold 182543, Geos in fourth quarter 2021, compared to just over 162000 Geos in Q4 2020.
A 12% increase was a result of strong performance from our diversified assets. We benefited from the addition of the valley royalty as well as the rebound in energy revenue.
For the quarter, we had strong performance from Cobre, Panama and candidly area as they delivered higher geos than expected, while <unk> and guadalupe or weaker delivering last geos and prior year.
Revenue for the Hemlo MPI was negligible for the quarter as the operation continued to produce less ounces from our royalty lands and incurred higher costs.
Net profit interest royalties do have leverage to rising commodity prices and we do think there is a possibility for the hemlo NPI to rebound in 2022, given where current gold prices are.
With respect to the iron ore assets, we recorded 8600 geos in the quarter compared to 4778 in Q4 2020, the increase being the addition of the valley of royalty.
We will find out later this month, what the actual royalty payment will be for the valley assets for the last six months of 2021, and we'll report any adjustment required in first quarter of 2022.
The strong fourth quarter closed out the year with 728237 Geos sold for 2021, a new record for Franco, Nevada, and a 27% increase over prior year.
<unk> metal Geos represented 76% of total geos for the quarter and 77% for the full year.
The geos for the full year do include 117256, geos related to the energy assets.
Yes.
2021 saw continued positive momentum in commodity prices as you see on slide five all commodities were highest for the year with iron ore and energy increasing significantly however for the quarter other than energy prices and platinum precious metal prices averaged lower than Q4 2020.
Slide six highlights our total revenue and adjusted EBITDA amounts for the three and 12 months ended December 31, 2021 and 2020.
As you can see from the bar charts revenue and adjusted EBITDA has increased year over year.
Company reported $327 $7 million in revenue in fourth quarter, and $269 8 million in adjusted EBITDA a margin of 82, 3% was achieved.
Fourth quarter continued the strong contribution from the energy assets as revenue increased from $27 8 million a year ago to $62 million this quarter.
Increase was due to the rebound in energy prices from a year ago as well as the contribution from the Haynesville gas acquisition.
For the full year, the company recorded $1 $3 billion in revenue.
And 1.09 billion and adjusted EBITDA, Both records for the company.
As you turn to slide seven you will see the key financial results for the company. There were a lot of financial records for the full year, which are highlighted in gold.
As mentioned with the increase in commodity prices. The company had strong revenue growth for the quarter and year and with the margin generation of our business model. There was a significant increase in adjusted EBITDA and adjusted net income.
On the cost side, we did have an increase in cost of sales as more stream ounces were delivered and sold compared to 2020 in fact stream geos increased 19% year over year.
Depletion was also higher at $299 6 million versus $241 million a year ago due to the increase in Geo sold a large portion of it being from higher depletion stream assets. In addition, we had additional depletion related to the Qantas Starplex and valet and Haynesville acquisitions.
For the full year or just the adjusted EBITDA was $1 9 billion at 30% increase over 2020, and the first time adjusted EBITDA has surpassed $1 billion.
Adjusted net income was $673 $6 million at 30% increase over 2020, while adjusted net income per share was $3 52 also a 30% increase over full year 2020.
Slide eight highlights the continued diversification of the portfolio, which we consider one of our strengths and Differentiators of Franco Nevada.
As shown 77% of our 2021 revenue was generated by precious metals.
The geographic revenue profile has revenue being sourced 91% from the Americas with Canada, and the U S being the largest.
With respect to asset diversification Cobre, Panama was our largest revenue generator at 18% of total revenue for the year, followed by add to Buckeye and candy Larry at 9%.
Cobra, Panama is the only asset greater than 10% of revenue.
And the last chart highlights our operator diversity, our largest exposure to revenue being generated by any one operator is 18%, which is first quantum who operates cobre, Panama, we're fortunate to have royalties and streams on many properties mined by some of the most reputable mining companies in the world.
Slide nine illustrates the strength of our business model to generate high margins.
For 2021, the cash cost per Geo is essentially cost of sales divided by gold equivalent ounces and it is $245 per Geo. This compares to $277 per Geo in 2020.
This amount will fluctuate depending on the mix of royalty versus stream geos, including mining and energy, but as you can see at current average gold prices the company generates significant margins.
In a rising commodity pricing environment, we expect to benefit fully as the cost per ask Geos sold should not increase significantly we consider our cost structure to be essentially fixed.
The other cash cost component for the company. Besides the cost of sales as our corporate administration cost, we like to stress the strength of our business model and the scalability.
The chart on slide 10, clearly illustrates our focus on being as cost efficient as possible in managing this business here.
Here, we have highlighted our quarterly revenues and our quarterly corporate administration expenses since our IPO.
As you can see revenues have grown significantly over the period shown whilst corporate costs have remained fairly stable for.
For 2021, corporate administration, including stock compensation expense was $30 8 million or less than 3% of revenue.
Management believes we can continue to add to our portfolio and grow our business without adding significant overhead to the company.
Yes.
2021 was a record year for Franco Nevada as it built on the momentum from another record year in 2020.
As seen on slide 11 for 2022, we are guiding to slightly lower geos sold with the range being 680000 to 740000 Geos sold.
As mentioned previously this does include our energy revenues being converted to gold equivalent ounces.
Of this total we are guiding to a 510000 to 550000 precious metal geos for the year.
The balance would be geos from our diversified assets of which we expect energy to account for 75% of diversify geos in 2022.
The overall main drivers for Geos year over year are for precious metals, we do expect higher geos from Tasiast and <unk>.
We have assumed similar deliveries as 2021 for Cobra, Panama before it ramps up in 2023.
We are anticipating less mining on our lands at Guadalupe.
And for <unk>, we are assuming a decrease in geos delivered based on lower rates per mine plants, we do expect a rebound for <unk> 2023.
Our guidance has been calculated using $800 per ounce for gold 23 for silver and $1000 for platinum 2100, palladium and $125 per ton per ton for 62% iron ore.
Obviously these prices are lower than current prices.
However, we would not expect our precious metal geos sold range to change significantly if current pricing was used on.
On the energy side, we're using $85 per barrel <unk> and $3 75, Mcf for natural gas.
This provides a range of 125000.
To 145000, Geos from our energy assets.
As we look forward to 2026, we're proud of the built in growth that the company already has in place our.
Our outlook for 2026% to 765000 to 825000 Geos sold.
This range precious metals will be 570000 to 610000 geos.
Main contributors will be Cobra, Panama raft ramped up to 100 million tons per year.
As well, we will benefit from the expansion at Stillwater Detour on Tasiast and as Paul mentioned, a number of new mines et cetera, either under construction or we expect to be.
Built by 2026.
We do expect Mccreedy western Sudbury to remain in production at 2021 levels until 2026.
And I'd like to note that mine waste solution will reach its cap in 2024.
On the diversified Geos, we do expect an increase in Geos for our valley royalty is attributable production should increase.
As well, we assume rosemont will be in production by this time.
For the energy assets, we've assumed a slight increase in production over the next five years, resulting in a small increase in geos.
So we have not included any production or revenue associated with the remaining $92 million to be funded for the royalty acquisition acquisition venture with continental.
We view similar commodity prices as we did for 2022.
Overall, when you look at the outlook for Geos sold the company has over 10% built in organic growth to 2026 at budgeted commodity prices. This assumes no additional assets are added to the portfolio.
With respect to the CRA audits that are ongoing as mentioned previously CRA has been auditing additional years under the various audits.
Additional reassessment have been issued all reassessment received to date are highlighted on slide 12.
And I'll review. These are all normal course, and we believe cra's reassessment or not supported by Canadian tax law, and we are defending our tax filing positions and we will continue to do so.
Slide 13 summarizes the financial resources available to the company when including our credit facilities of $1 1 billion total available capital at December 31, 2021 is $1 6 billion.
And with that I will pass over to the operator, and we're happy to take any questions.
Thank you ladies and gentlemen, we will now begin the question and answer session. If you have a question. Please press star followed by one on your Touchtone phone, you'll hear three ton prompt acknowledging your request and your questions will be pulled in the order. They are received should you wish to decline from the polling process. Please press star followed by Tim.
Using a speaker phone please lift your handset before pressing any Keith.
First question comes from Adam Josephson with Keybanc. Please go ahead.
Sandeep good morning, hope you're well.
Thank you for taking my questions.
Sandeep, you mentioned youre expecting a slight increase in energy production over the next five years as part of your 26 guidance can you talk about just the conversations youre, having with U S oil and gas companies.
And whether you sense that there is the impetus and ability to meaningfully change their production plans in the near term and longer term just given political constraints slash consideration supply chain constraints investors' willingness to sign off on large capex programs et cetera.
Hi, Adam it's Jason O'connell here.
Hi, Dave.
We're keeping an eye on what's happening with the operators, particularly in the U S.
We are running our shale assets.
To date, they have been fairly disciplined in how they're allocating capital into into their assets. We've seen I guess from the low point in 2020 after commodity prices crash, we've seen a pretty good rebound in drilling rig drilling rigs across our acreage.
Despite that fact.
Raters are under pressure from their shareholders to maintain a fair amount of discipline in how they allocate capital.
Returning capital to the shareholders rather than putting it back in the ground and so.
What set to possibly changes given the large jump in energy prices here.
There is some talk and some pressure from the government and the U S to increase production. So we could see a situation here where production volumes increase.
The strong price environment that we're seeing right now.
Okay.
Follow up on that just so what what are you what is embedded in your five year guidance, along those lines I mean, what what.
If any do you think that increased governmental pressure to have.
So when we put together our five year guidance.
We sort of take a view on go forward rig activity levels across our shale assets. So our Canadian assets are fairly.
Flat and consistent they're easier to model going forward the U S.
Assets, what we do is we look at.
Where rig counts, where historically, how they sort of bottomed out in 2020.
And what the trajectory is of that rebound and we make a go forward estimate.
Activity levels going forward, which drives our volumes.
Those activity levels are different depending on the basin, where the asset is located some basins performed for our performing.
Longer than others.
The Permian for example is outperforming the scoop stack and so we have an internal forecast productivity levels across all of those basins, we can drive our volume profile.
There is some growth in some of our assets some are sort of flat, where we would expect to see growth.
Within the continental joint venture that we have.
That is expected to grow over time.
Without any additional spending and if we do spend part of our additional commitment on top of that we would expect even more volume.
Creases with that asset the other about the other assets.
Some growth, but it's mostly.
Flat out to 2026.
Thank you for that Jason.
Paul you've talked on previous calls about the 80% threshold under which you wouldn't want your precious metals exposure to go although I think your comments on the last call, we're a bit more nuanced.
Your investments in the energy sector and other non precious metals have been paying off for you.
How how if at all is that influencing your thinking about what the right threshold is and why.
Thanks, Adam.
Always with our business our number one priority.
It's adding precious metals to the portfolio.
But the industry is more competitive.
And so you're right in saying we were.
Indicating.
Keeping all the avenues open to us in terms of adding good diversified assets, if they do come available as well so that we've got the maximum opportunities to grow the company.
On the energy side, we have indicated we're not looking to add more assets at this stage.
We think the level of contribution is good in the portfolio.
In due course of the portfolio is much bigger we may get back to adding energy assets.
In the short term, obviously with the constraints on the amount of capital available in that industry, I think energy prices will do particularly well.
If we do get a larger contribution from them.
Say that would be all upside.
I appreciate that and just one follow up to that pause there are constraints on obviously production growth in.
In many industries. These days not just energy, but also in metals of course, so how was that.
Influencing your thinking about.
Which royalties and streams on the metal side you'd be most interested in doing just when you look at long term production forecasts for copper gold silver you name it.
The expected growth rates were all pretty low for reasons you are well aware of so can you just walk me through that issue a bit.
It's a double edged sword.
And a lot of census in that yes, a few new mines getting built it gives us.
Opportunities to acquire new assets.
But only have a hand.
If youre not building new mines, the only place to get the orders from existing mines, and so you get expansions brownfield assets.
And really our business is one of the prime beneficiaries of that that we've got such a deep portfolio. If that's where the capital goes we do tremendously well.
So how does that influence how we think about projects.
It obviously puts a premium on operating projects it puts a premium on shovel ready and permitted projects.
As opposed to things that are longer dated and have more risk.
And just lastly, Paul along those lines any change in your views on jurisdictional risks in recent months.
Just given developments in South America and elsewhere.
No doubt.
Particularly post COVID-19 .
Where governments.
We have a real need to.
To address the treasuries that there is more pressure in a number of countries, mostly due to increased tax rate.
It is a concern.
Fortunately most of our transactions are structured so that were not directly impacted by those increases in tax rates.
So it's it has some impact we certainly think about it when you're thinking about the car.
A concentration of assets that we have in any one country.
At the heart of it in our business. We think diversification. This is such a key thing to minimize risk.
Because we've got such a diverse portfolio.
Feel that we can.
Take on some risk perhaps that others cant.
But if we if we do it in a modest dollar size.
That we can add good return and mitigate the risks within within the portfolio.
Thanks, very much Paul.
Your next question comes from Cosmos.
With CIBC. Please go ahead.
Oh, hi, Thanks, Paul Sandeep and team.
Maybe my first question is on <unk>.
What's happening overseas the award in Russia, and Ukraine.
Just to confirm I have gone through your asset Handbook quite a few times just to confirm you have no exposure to Russia is that correct.
We have no direct exposure to customers.
And then how 'bout to eastern Europe .
We have no assets in eastern Europe .
We have some small assets.
Turkey, which is probably the closest.
Okay great.
And then maybe switching gears a little bit in terms of.
<unk> and gas.
As you mentioned continental the relationship here there is still about $61 6 million to be spent.
Only about $22 million was spent in 2021, which was surprising to me I would've thought given the robust sort of energy and environment more money, there's more opportunities out there maybe.
Maybe I am incorrect, maybe can you talk about the timing in terms of what still needs to be spent.
Opportunities and is there also the opportunity to potentially.
Maybe expand its relationship just given how well sort of energy prices have gone.
In 2021 and into 2022.
Thanks Cosmos, it's Jason.
We have about a little over $91 million left with our commitment with continental.
Youre right in that spending has slowed.
From the initial years.
It's largely a consequence of the fact that prices dropped a lot in 2020.
Although they have rebounded it's hard in a volatile price environment for buyers and sellers to agree on price and when things are changing rapidly.
Difficult.
To agree and do transactions, so the level of spending or the rate of spending slowed in 2021.
To around that $22 million level.
We would expect.
In 2022.
Given the rate of change of commodity prices here it may be difficult again.
To meet <unk> between buyers and sellers, so I would expect that rate will likely be.
Similar.
But there is some volatility as well sometimes.
Gartner shippers buying small royalties other times bigger opportunities come available, which could move the dial a little bit more significantly.
There is potential to expand the relationship there as Paul mentioned earlier, we're currently happy with our oil and gas balance. So it's not something we would look to do in the near term, but we do have a great relationship with continental and think they are great operators. So if ever we would want to increase our oil and gas exposure there.
Could be an option in the future.
Great. Thanks, Jason.
And maybe one last question Paul as you mentioned.
Good organic growth from the portfolio, 10% over 10%.
And the next five years, but as you talked about the other leg of growth is through acquisitions.
You kind of touched on it but.
Could you talk about the market in terms of.
New acquisitions I saw that you did skeena last year comparable.
Smaller scale.
Last year at the end of last year.
We're looking at potentially slightly longer periods sized.
<unk> is competitive.
Any comments, what I think will be helpful.
Cosmos I'm going to hand that question to year.
Good morning, Carlos Hi, Ed how are you doing well thanks in terms of the market.
We see a pretty healthy pipeline at the moment, a variety of sizes of potential transactions and as Paul pointed out the focus of the team and what we're working on really is focused on precious metals at the moment.
We do see good opportunity.
When we have existing assets, we will do smaller transactions like you saw gross loss in SK Creek.
That we really like.
Sure.
Great. Those are all the questions I have thanks once again.
Your next question comes from Mike <unk> with Bank of America. Please go ahead.
As Paul and Sandeep, everyone there.
Question on the 2026 Joey guidance from precious metals.
Kendall.
Hi.
Is that fair.
No.
Contribution from those assets before.
The reductions when you hit the minimum you hit those thresholds production.
Yes, Hi, Mike, Yes, that's correct in 2026 were still under the current terms and then.
Subsequent to that I believe in 2027.
<unk> steps down and then candidly area right thereafter.
Okay, I guess I was close to that so that.
That was my only question. Thanks.
Your next question comes from John Tumazos, with John Tumazos, very independent research. Please go ahead.
Thank you very much.
Concerning the timing of deliveries I noticed that.
And the first second and fourth quarters of this year the gold revenues were.
Between 190, and 190 596 five for the current quarter.
Third quarter is it gold revenues were only 169.2.
That seems to affect the percentage of precious metals versus the other but.
Or is there some.
Underlying project.
Had a lower grade ore as a shipment as it goes.
Moved into the.
Third quarter ended affords.
Why was the third quarter or so.
Particularly.
I'd have to check there, Jon but it might've been deliveries from Cobre Panama.
But.
There are times, where you do get delays in deliveries, but it shouldn't be overly material quarter to quarter.
Thank you.
Ladies and gentlemen, as a reminder, if you do have any questions. Please press star one.
Your next question comes from Tanya <unk> with Scotiabank. Please go ahead.
Hi, Good morning, everyone. That's me.
Thank you for taking my questions I have three Jeff.
Just wanted to start with sensitivities, if I could to commodity prices and thank you very much for giving us your commodity price assumption for your GE Alice.
Just wanted to start with just Jason.
Last guidance on the energy prices with a 10% move would impact revenues by 13% is that still a viable number for Sts.
It's close Danielle, though as prices go higher.
Less leverage in the portfolio just because of the costs are not moving up as quickly.
If you think about.
The portfolio in terms of gas and oil separately.
Oil is about 50% or so of the revenue.
And gas is about 50% on the gas side, we are slightly better than than one to one leverage.
And just because there are some minor processing costs that are applicable on.
On the oil side, the overall leverage right now is about $1 25 to one.
And thats, mostly driven by <unk>.
Leverage with the waiver and NRI, so the waiver and NRI.
Current prices.
<unk> leverage of about one seven to one.
Which is about and thats about 30% of our oil revenue.
So to answer your question on gas, it's about one one to one right now and on oil it's about one five to one.
Okay. That's helpful. And then could we have some guidance on the iron ore the iron ore prices that are quite different for 10% move in iron ore, we have a sensitivity there.
Yes, So we did look at it Tanya.
It's basically a one to one on the iron ore.
And on the gold it's for a 10% increase it's about a 12% increase in cash flow.
Because of the streams and the electric staff, Okay, and the one follow on iron ore is that revenue revenue yes.
Perfect. That's great and then this is my first question of sensitivity. The second one was just coming back to you.
2026 guidance and thank you very much sir.
Giving us guidance on the expansions and what you include in the 2026. So we have all of that was just a couple of ones I wanted to check with you.
Yes.
What do you look like.
Goldstrike is it something similar to what we have in 2021 or does that start to decline we havent declining in 2026, yes. So goldstrike, we're sort of looking at it to be pretty consistent going forward.
We don't think the production profile will change too much.
So for now it's.
It might be slightly lower but in general it's in line with 2020.
And what about gold quarry that seems to go on for a lot. Yes. So goldcorp going forward, we are forecasting 1350 ounces a year.
So thats the number that will go on for the next number of years, including 2026.
And maybe I am Duke.
Do we still have production in 2026 in your numbers.
We do I, just don't know what the amount is off the top of my head, but we still have production from duty.
That's helpful. Thank you and then maybe just coming back to.
Actions that you are seeing and we talked about some of them and the last quarter conference call and you are saying you're seeing on the gold side.
Financing for development assets or projects.
You talked about total $100 million to $300 million range is that what youre seeing.
We're seeing a variety of deal sizes really at the moment.
Across the spectrum, so I would be hesitant to give you a size.
What I would say, though that you are right.
Really focus on precious metals and development projects.
Okay and your.
Non gold our bulk commodities.
Transactions were up to $500 million.
Your last call is that still what youre, saying.
I guess im asking are you seeing larger sized transaction.
The commodities versus gold.
I would say.
As Ian mentioned, a good range of sizes I don't think a difference between precious metal and diversified now.
Some of the small some of the mid size range.
Okay.
Okay, and just to make sure that on the bulk commodity side that youre looking at your focus is really still based in battery metals.
Yes.
No.
On the on the diversified side, it's good deposits.
There are some in the Boston and the bulk in the base, but where we.
We're always open just looking for good geology.
Often long dated cash flow if we can.
<unk>.
It's more of the assets that were driven by the particular commodities.
I guess I should just ask one last one as uranium something that you would look at.
It is.
At the same criteria.
If it's a great ore body.
And we can get it.
<unk> is an attractive long term price we're always interested.
Appreciate the insight. Thank you so much.
There are no further questions on the phone.
Thank you there are no questions from the webcast.
So operator, I think we can wrap it up then.
Okay, Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines have a great day.
Thank you.