Q4 2022 Royal Gold Inc Earnings Call
Good afternoon.
Thank you for attending today's Royal Gold, Inc. Calendar year 2022 fourth quarter Conference call. My name is Frances and I'll be your moderator today.
All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.
If you'd like to ask a question. Please press star one on your telephone keypad.
I would now like to pass the conference over to our host Alistair Baker with Royal Gold. Thank you operator, good morning, and welcome to our discussion of Gorilla Gold's fourth quarter and full year 2022 results.
This event is being webcast live and youll be able to access a replay of this call on our website.
Speaking on the call today are bill Hudson bottle, President and CEO .
Mark <unk> Executive Vice President and C O Royal Gold Corporation.
Martin Rockville, Vice President of operations, and Paul <unk>, our CFO and treasurer.
Randy Shafman General Counsel, and Dan Breeze, Vice President corporate development of RG AG are also available for questions.
During today's call, we will make forward looking statements, including statements about our projections and expectations for the future.
Statements are subject to risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties are discussed in yesterday's press release, and our filings with the SEC.
We'll also refer to certain non-GAAP financial measures, including adjusted net income adjusted net income per share adjusted EBITDA adjusted EBITDA margin.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in yesterday's press release, which can be found on our website.
Well I will start the call with an overview of 2022 results Mark will provide some commentary on revenue Martin will give some property updates all of them.
Wrap up the financial summary.
After the formal remarks, we'll open the lines for a Q&A session I'll now turn the call over to Bill.
Good morning, and thank you for joining the call I'll begin on slide four.
2022 was a successful year for Royal Gold with strong portfolio performance in line with the guidance we provided in April .
<unk> fourth quarter helped us and 2022 on a high note and turn into some strong financial results for the year.
We delivered revenue of $603 million operating cash flow of $417 million and earnings of $239 million or $3 63 per share.
After adjustments earnings were $3 43 per share.
We are very active in 2022, and deploying growth capital and we added three large and long life royalty interest to the portfolio.
All of which fit our acquisition strategy of high quality assets operated by leading Counterparties in safe jurisdictions.
The first was the acquisition of a royalty on Kinross is great. There project in Ontario. The second was the acquisition of an additional royalty on the Cortez complex in Nevada from Rio Tinto.
And the third was the acquisition of a further royalty interest at Cortez, which we call the Idaho royalty.
We acquired the Idaho royalty from various private individuals we have known for many years.
And this transaction came about through conversations with those parties after the Rio Tinto royalty acquisition.
With this royalty we now have exposure over the entirety of the Cortez complex, including the Robertson project.
Cortez was Royal Gold's first royalty interest in the late 19 eighties, and we are pleased that our long standing relationships. There have allowed us to keep growing our exposure to one of the world's most prolific gold mining complexes.
Not only did we identify new investment opportunities, but we also allocated capital within the portfolio.
The final $26 $5 million investment Echo Macao, we increased our silver stream percentage at that asset to 100%.
We deployed over $900 million during the year, which makes 2022, our most active year of additions since 2015.
We kept our focus on maintaining shareholder exposure to this growth and we finance these acquisitions without issuing equity.
We took on leverage during the year, we have a consistent record of paying down debt and we expect to reduce our outstanding borrowings as cash flow allows.
Within the portfolio, we saw the return of the Mount Milligan advance payment mine life extensions at Mount Milligan and rainy River.
And the initial production that king of the hills.
We also kept our focus on returning capital to shareholders raised our dividend by 7%.
The 20th annual increase to the dividend, which is an unmatched record in the precious metal sector.
Well, our G&A costs rose in part due to inflation, our adjusted EBITDA margin was 79% for 2022 versus 80% in the prior year.
Our unique business model provides strong leverage to gold without direct exposure to operating and capital costs.
We are not immune from inflationary pressures are low and stable costs provide protection against margin compression.
And finally, we issued our inaugural ESG report in 2020 to ESG.
ESG has always been important to Royal Gold and we think this report provides a solid foundation to describe our approach.
We look forward to following up on this report and advancing our disclosure in this area in the near future.
I'll now turn the call over to Mark to provide some comments on the portfolio.
Thanks Bill.
Turning to slide five I'll cover portfolio performance over the year as compared to guidance.
Portfolio performance was strong in 2022.
We met sales guidance for gold equivalent ounces or geos. Both in terms of the prices, we used to set guidance and the actual average market prices.
Sales were approximately 337000 geos at guidance pricing, but note that this included approximately 3000 geos from the Rio Tinto and Idaho royalties in the fourth quarter.
If you remove this contribution which was not included in our April guidance production volume was still in the top half of the guidance range.
Our DD&A and tax rates were in line with guidance and Paul will go into more detail on these items in his comments.
2022 was our first year for providing full year guidance and we are pleased with our process and approach.
We expect to provide 2023 guidance early in the second quarter.
Yes.
Turning to slide six I'll provide some comments on the fourth quarter revenue overall volume for the quarter was a very strong 94000 geos.
Our royalty segment contributed $54 million in revenue a decrease of about 7% from the prior year quarter with lower contributions from tennis Quito and leave it.
Partially offset by stronger contributions from the Cortez legacy zone and revenue from our new royalties on the Cortez <unk> zone.
I'll provide more detail on the legacy and Ccs zones, and how we think about our various cortez royalties on a blended basis when I move to slide seven.
At Cortez, we received revenue of approximately $5 $2 million from these new royalties with $4 $5 million from the Rio Tinto royalty over the fourth quarter and $700000 from the Idaho royalties for the month of December .
Our stream segment revenue was $109 million, which is basically flat compared to the prior year quarter higher contributions from Mount Milligan and <unk> were offset by lower revenue from <unk> and Pueblo Viejo.
Turning to slide seven I wanted to make a few comments on our overall royalty position at Cortez complex, our royalty position at Cortez has grown significantly over time, so we now own royalties that overlap in several areas.
It's a complicated royalty position and we've tried to simplify this by grouping our royalties together and providing a single blended royalty rate for each of the known deposits to Cortez complex the.
The table on this slide it looks complicated, but with a little explanation I think you'll find us a useful simplification.
Thinking about our individual royalties and the gray columns on the right we would like.
Think about each of the mines and deposits shown in the rose and blended royalty rates in the blue boxes that apply to each of them. For example, the pipeline and crossroads Crossroads mines are covered by an approximate nine 4% GSR royalty while.
Cortez Hills Cortez pits four mile and gold rush are covered by an approximate one 6% GSR.
We're also calling the area covered by our oldest royalties the legacy zone.
And the additional area covered by the Rio Tinto and Idaho royalties the Ccs.
The Cortez complex is large with several producing mines and development projects and with the acquisition of the Rio Tinto and Idaho royalties, we now have exposure to the entirety of the complex. We hope this new presentation over interest will help you understand the contributions to Royal gold from these.
Various areas.
I'll now turn the call over to Martin to give an update on specific assets within the portfolio.
Yeah.
Thanks, Mark I'll now turn to slide eight with a few comments on recent developments at the operations.
<unk> reported that the ramp up to the target operating rates of 10000 tons. A day was reached in December and mining operations continue that nameplate capacity in January in line with what we said on our last quarterly call.
They also reported they're all key operating and cost parameters are in line with expectations.
We are pleased with this result, when we commence the KC team for successfully delivering this project despite challenges caused by the COVID-19 pandemic.
Hi, Paul.
<unk> announced the commissioning of the plant expansion is expected to be substantially complete by the end of this quarter and a pre feasibility study on the <unk> tailings facility was completed in the fourth quarter.
The completion of this study allowed the addition of $6 5 million ounces of reserves net of depletion to Barrick, 60% interest in Pueblo Viejo at the end of 'twenty, two which barrick.
We will extend the mine life beyond 2014.
Yes, so the new tailings facility was submitted in the fourth quarter and Barrick expects a decision on the CSI I during the first half of this year.
Silver deliveries were approximately 337900 ounces in the quarter.
Including the delivery of 17700 deferred ounces resulted in a remaining balance of 513000 deferred ounces.
We expect that silver recovery could remain highly variable until the plant expansion project is complete and we don't expect material deliveries of deferred silver this year.
We continue to see this as a cash flow timing issue and we don't expect it to have any lasting impact on silver revenue.
At Cortez Barrick announced the completion of a pre feasibility study at the Robertson project and declared a maiden reserve of $1 6 million ounces.
Alright expects this will provide a key source of oxide mill feed in the Cortez complex mine plan.
Eric also provided an update on permitting activity at the gold Rush project Alex.
The record of decision to be issued by the end of the first half of this year.
In the meantime work continues on mine development and test stoping areas with gold rush with the watering is not required.
As well as exploration drift above the ore body to provide future underground exploration access.
Turning to slide nine.
So 2022 production was 171000 ounces.
Feeding the high end of the guidance range, mainly through using open pit ore to supplement underground production.
<unk> is expecting to continue mining from underground and surface operations. This year and is targeting 2023 production of 180000 ounces.
<unk> is also working on several projects in 2023, including a new definition drilling horizons geotechnical and shaft design studies for the South extension and a new portal to access all below the historic $2 42 pit.
I will note that we no longer label Wassa as a principal property, we complete periodic reviews to determine the materiality of interests in a portfolio and given some of our recent acquisitions losses relative contribution no longer meets management criteria to be described as a principal property. However.
<unk> remains an important asset within our portfolio and we look forward to seeing how Q1 continues to advance the various projects underway.
Hi, Greg Kim Ross released the maiden resource statement earlier this week along with a project update we are pleased to see the initial 5 million ounce resource made up with $2 7 million ounces of indicated and $2 3 million ounces of inferred resources as I described in my project update their focus so.
<unk> has been on the top 500 meters of the deposit with promising exploration results at depths exceeding 1000 meters from surface.
We are planning a full drill campaign this year to test continuity at depth as well as continued drilling along strike and on some of the parallel structures identified so far.
We think theres good potential to expand this mountain resorts as they get underground with an exploration decline in the next couple of years.
We had an update with their technical team last week and they are executing to a detailed plan with a focus on expanding the knowledge of the ore body in order to advance the project as quickly as possible.
Finally positive developments continue that some of our smaller portfolio of assets over the quarter, which I mentioned in yesterday's press release for example, <unk> gold production guidance for 2023 is over 20% higher than actual 2022 production Red five reached commercial production.
King of the hills in mid December of child, We reported the total project progress is 50% complete Tomorrow Rosa and early works have started that man show with first production on track for 2024.
I'll now turn over the call to Paul for review of our financial results.
Okay.
Thanks, Martin I'll now turn to slide 10, and give an overview of the financial results for the quarter.
So this discussion I'll be comparing the quarter ended December 31, 2020 to the prior year quarter.
Revenue was $163 million for the quarter a decrease of 3%.
The main driver of our lower revenue this quarter was a decrease in the average commodity prices when compared to the prior year period.
Paired to the prior year quarter, the price of Goldman's down, 4% silver was down 9% and copper was down 18%.
As Mark mentioned in his remarks, we also recognized just over $5 million in new revenue from the recently acquired Cortez interests.
And had overall strong performances within bulk our stream and royalty segments.
Golar remains the dominant revenue source sneaking up 73% of our total revenue.
All by copper at 12% and silver at 11%.
Turning to slide 11.
G&A expense increased $8 $8 million from $8 million in the prior year quarter.
The increase was primarily due to higher ESG related costs as part of our broader ESG initiatives.
Specifically during the quarter, we contributed over $800000 to various programs in the communities, where we have royalty or stream, New Jersey and in the communities, where our employees live and work.
Although inflationary pressures continue to have an impact on some of our producing peers, our cash G&A costs have remained more or less than 5% of total revenue.
Our DD&A expense was $49 million, which was flat compared to the prior year quarter.
On a unit basis. This expense was $521 per geo for the quarter and $534 per day for the full year.
Full year DD&A was in line with our earlier guidance range of 510 to $560 per Geo.
With respect to the Idaho required for $204 million in December we allocated $73 4 million or about 36% of the purchase price to production stage royalty interests.
It will be completed using units of production based on proven and probable reserves as reported by engineered.
The remainder of the value was allocated to exploration stage royalty interest, which is not currently subject to depletion and will be reclassified reduction stage as additional material is classified as reserves.
Interest expense increased to $6 1 million during the fourth quarter from $900000 in the prior period.
The increase was due to higher average amount outstanding under our revolving credit facility and higher interest rates when compared to the prior period.
Tax expense for the quarter was $13 million, resulting in an effective tax rate of 18, 2%.
This compares to $14 million and an effective tax rate of 17% in the prior year period.
For the full year tax expense was $33 million and the effective tax rate was 12, 1%.
Our full year tax it's been an effective tax rate benefited from the previously mentioned discrete tax event during the June quarter.
Which was related to the release of evaluation allowance on certain foreign.
Our tax assets.
Excluding this discrete item the effective tax rate for the full year was 19%.
It was in line with our guidance range of 17% to 22%.
Earnings for the quarter were down over the prior year to $56 million or <unk> 86 per share.
After adjusting for a one time impairment of $4 3 million on a non principal exploration stage royalty interest during the quarter.
Adjusted earnings were $60 million or <unk> 91 per share.
Earnings in the prior year quarter were $68 million of our $1 four per share.
The main contributors to decrease earning this quarter when compared to the prior year were lower revenue higher interest expense and the impairment of the exploration stage royalty interests.
Operating cash flows were strong this quarter with $101 million compared to $119 million in the prior year.
The decrease during the quarter was the result of lower contributions from the royalty segment.
As Mark mentioned, we expect full guidance for 2023 early in the second quarter with most of our Counterparties have issued their own production guidance for calendar 2023. However.
However to help you prepare your March quarter estimates, we expect our stream segment sales to range between 54050 9000 during the first quarter of 2023.
This estimate takes into consideration an early stream delivery, we received from Mount Milligan this quarter and the impacts of heavy rainfall and the unplanned maintenance during the September 2022 quarter and coil.
I will now turn to slide 12, and provide a summary of our financial position at the end of the quarter.
During the quarter, we grew $200 million revolving credit facility to help fund the Idaho growth.
But also made a $75 million repayment on our revolver earlier in December as well.
Result, we ended 2022 with 575 million outstanding under our revolving credits credit facility at a current all in borrowing rate of five 9%.
The 425 million Undrawn revolver capacity combined with the $122 million working capital provided a total available liquidity of approximately $550 million at the end of the quarter.
In keeping with our approach to capital allocation, we expect to repay the $575 million outstanding revolver balance as cash rollout and absent any further business development activity.
At current metal prices, we anticipate repayments by around mid 2024.
Beyond our current debt outstanding we have no other significant financial commitments as of the end of the quarter.
That concludes my comments on our financial performance for the quarter and I will.
I'll now turn the call back to Bill for closing comments.
Thanks, Paul I am pleased with our performance in 2022, we have a long history of managing our business around a simple set of strategic goals that include acquiring high quality and long life assets in safe jurisdictions lending.
Funding our growth with limited equity dilution, maintaining a strong balance sheet and liquidity and increasing our return to shareholders.
We achieved all of those.
Our portfolio also performed well and we successfully met our inaugural guidance.
We see continued progress at several assets in the portfolio and we expect some of those to provide interesting news flow in the near to medium term.
We are planning to host a virtual investor update on Thursday April 20th and we look forward to giving you a further detailed update on our business during that session.
Operator that concludes our prepared remarks I'll now open the line for questions.
Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove that question you May press star followed by Tim.
To ask a question Thats Star one.
As a reminder, if youre using a speakerphone. Please remember to pick up your handset before asking your question.
We will pause here briefly ask questions are registered.
Our first question comes from Cosmos <unk> with CIBC. Please go ahead.
Thanks, Bill and team.
My first question is on.
Great Bear.
As you mentioned you kind of touched on at Kinross.
Kinross recently published its initial resource $2 seven indicated $2 3 million ounces inferred.
I guess my question is how does that compare to your models when you.
Pro forma to due diligence last year before the acquisition with a great bear royalties.
Numbers that came out earlier this week, how did I compare to your internal models.
Cosmos, it's Phil Thanks for the question Mike.
Okay.
Yeah.
Yes.
I'll, probably turn it over to Martin in a second but I think the one thing I just want the overarching comment I want to make is we never expected the initial resource to be the ultimate resource.
And we had expected things to be staged a little bit I think the focus currently is down 500 meters.
And I think we felt pretty good about it but Martin is there something you'd like to add.
Yes, Thanks, Bill Hi, Cosmos.
Hi, Martin So I think I think bill as Bill has really said it all that but when we when we did our due diligence we did a lot of work on evaluating the ore body from the from the information that was there at the time.
And I think this is very much in line with what we expected from the first 500 meters.
The drilling below the 500 meters is starting to show really good results as reported by Kinross earlier in the week and we were excited to see what happens over the next year, but yes, certainly in line with our expectations. When we made the purchase.
Great.
And then maybe switching gears to Pablo VA Hill, you kind of touched on this as well but.
The deferred silver ounces I know theres still some uncertainty is coming up but.
I guess my question is what conditions kind of came together in Q4 to allow them to deliver on some of those deferred silver ounces.
The read through in short term and long term into what that means.
For silver production.
Yeah.
Yes, Martin I might turn that one right back to you as well.
Yeah.
Thanks.
Yeah.
I think the I think the the <unk>.
Deferred silver delivery was was just a result of the production during the during the quarter and the the grade that they saw in various months in the recovery that they saw with that.
We are we are still firmly of the opinion that once the upgrades. We've made to the plant that is going to going to fix the issue that they have with silver recovery and that's when we'll really start seeing I'm seeing silver come back to us.
But looking at looking probably at the second and third quarter to start seeing the plant ramp up.
Great.
And maybe taking a step back here and I. Appreciate as you said you don't have the 2023 annual guidance yet just given that some of the operators are still putting out their own guidance is.
But one company has given your guidance Derek.
Specifically I think you mentioned in the press release 580 to 650000 ounces at Cortez, where they're 61, 5%.
Interest.
I guess two parts number one is that sort of in line with what you had expected and number two at all.
Thanks for giving us the details.
In slide number seven in terms of the different components of the Cortez royalty these days.
But to kind of take a step back how can we use that table to help us with modeling what the contribution is eventually to royal gold using the $580 to 650000 ounces given today.
Yes, Cosmos you Didnt realize my real job here is to catch the question pivot somewhere else. So that's good.
Good.
Good.
Yes right.
And as Mark covered Cortez.
And I will ask if he's got anything to add I think right now the 100% number is a little hard for us to tell you because we've broken the royalty up into zones and until we have the zone production.
Can't tell you what the nine 4% I can't tell you, what's it's one 6%.
So I'm not sure I could help you, but that's what I'm going to go to market and say is there is there something I'm missing here.
Yeah.
No Youre right Phil.
Normally cosmos, we usually get.
Production guidance that we give.
At the end of the or for the Q1 conference call. So I would expect the same so we need we need Cortez to tell us whats associated at this point with the various pieces primarily.
The crossroads and pipeline piece.
That gets broken out so we really can't provide much other than the than the global number at this point, but.
The global number is certainly in line with with our expectations.
Uh-huh great perfectly understand maybe one last question and first off I need to congratulate you bill for making it to the S&P high yield dividend aristocrats index I know that was almost a year now, but I think some people don't appreciate how how much of an achievement that is.
And then on that to follow up Bill.
Clearly dividend is very important to you could you remind us in terms of capital allocation, how you look at dividends versus.
<unk> growth royalty acquisitions, and what's the market out there well how does that look right now.
Yes.
Capital allocation.
Our view is the best thing, we can do for shareholder value is to find new assets.
You take cash value of one times that may be on your balance sheet and you invested in something that.
Hopefully commands a premium to that so that's always going to be priority number one priority number two.
Is to pay down debt, if we've taken on debt to make acquisitions, we want to pay that down as quickly as possible to restore that.
That liquidity.
But.
I make ranked dividends third, but it's obviously very important to us and I. Thank you for noting our achievement, we're very proud of it.
Again, just I appreciate your comments I think the second part of your question had to do with the market in general and sort of business development. If that's the case.
Dan can hop on here and give us.
Give you his thoughts.
Yes, happy to Bill Hi, Cosmos Hope Youre doing well hi, Dan.
Look.
I think the themes that we saw last year cosmos that being.
The more expensive.
Equity, particularly precious metal equity need for to raise that in the market.
I think those continue to be challenging so I think that's good I think that's what we're seeing right now I'd say, we're seeing kind of three buckets of opportunities.
I'd say the first one is we're seeing the larger financing for project development.
The $300 million range, we've been talking about for a number of quarters that still very much relevant right now in terms of the size that we're seeing and that's good for US we have a liquidity as you heard to handle that kind of a size.
The transaction and then if you look at our size versus our peers, that's quite material for us. So we like that part of the market right now.
We're also seeing quite a few smaller I would say earlier stage royalties.
10 million to $30 million kind of sizing and again I think that's related to the equity being challenged right now were very busy we have been very busy.
The number of opportunities and really leaning on the technical team to.
To try to identify those opportunities those land packages.
Side, so thats been busy for US and then the third bucket smaller bucket is M&A and we have seen a few opportunities where streaming has been considered to help an operator.
Wired asset required.
Yeah.
And so that's been interesting as well and I'd say, that's kind of popped up here in the last say six months or so is the third bucket that's kind of what we're seeing right now I think we like the pipeline primarily.
Primary gold assets, but we have seen a few base metal opportunities with precious metal byproduct as well, we like that obviously the longer mine lives.
It fits our product very well so hopefully that helps you with.
A bit of color in the market.
Yes. It does so so thanks again, Bill Martin Mark and Dan for answering all my questions and congrats on a very successful 2022.
Thanks Cosmos.
Thank you for your question.
Our next question comes from Lawson Winder with Bank of America. Please go ahead.
Hello, gentlemen.
Thank you for the update today I wanted to ask.
I was wondering two questions at least one on ESG. So first of all congratulations on publishing your first ESG report last year I look forward to the new.
A new one coming this year.
I certainly think those reports can help with the rankings, but I wanted to kind of get your thoughts on that a little bit just given that the royalty streamers in general that Royal gold as well continues to kind of lagged the miners in terms of improvements in ESG scores at the various scoring companies Bill I'd love to get your thoughts on what you think the industry, but in particular Royal gold.
Can do to improve that.
Okay.
Given that you also thanks for that.
Given the nature of our business.
I can't I can't look at the scores and say why I think we can go we can get it will improve with sustained Olympics or will improve with MSCI I mean, I think we're already ranks.
<unk> like number two or three.
Amongst the gold sector in one.
Our sustainability score has improved quite a bit.
Over the past few years.
And I think the other thing is that because we're such a unique business.
Sometimes the questions we get from these these firms.
Just sort of paint us as a mining company and then we can't answer the question.
The way they want us to and that sometimes can can impact our score so I'm happy with where the scores are I'm very happy with the improvement.
We've seen over the past few years I, just I can't really give you a path forward.
As to how we would take concrete steps to improve it but we're always in discussions with them. So we're always trying to learn more about how they how they do their rankings.
Now the next report when approximately can we expect that and what sort of.
New details might we expect.
Well.
Goal here is our Investor day is April 20th would be to have it out in advance of that meeting so that.
We can take questions from from folks who have had a chance to get through it.
A lot of it I think will look similar I think the one thing that we've made a lot of great strides on it and Mark deserves all the credit for most of the credit for it is Tcf D disclosure and I think youll see compared to what we did last year youre going to see a lot more detail on that analysis.
Alright, that's fantastic I look forward to that kind of actually a follow up on the deal pipeline question that was asked earlier by Cosmos.
So you've had a lot of success, increasing exposure, particularly to high quality North American based assets in the past year.
It's great for the company.
Are you seeing in the pipeline in terms of similar kinds of North American based assets, particularly in that $200 million to $300 million range, but.
Perhaps outside of that and then and then maybe just jumping off from that.
Not North America, what are the geographies that kind of feature and the current pipeline.
Okay.
Yes, Im not sure we can we can break it down geographically too much but.
Dan is there anything you would add there.
Yes.
It's fairly broad and Youre right.
Back over over 2022 2021, even.
One 3 billion or still to be deployed.
We were very happy with the quality of the assets that we were able to acquire.
There is certainly is quality out there still.
We're focused on as I mentioned, both royalties and streams right now but.
We're also very very disciplined and I mentioned about these smaller royalties over earlier stage projects.
We're very focused on the people project in place criteria that we've talked about in the past.
And we don't have to do anything we're very very patient so.
I'd say the quality is still there we've been able to transact but.
We're also really careful at the moment with some of these royalty opportunities that.
Or maybe a little bit too early for us to consider.
Okay.
Thank you very much for that color.
Thanks Lawson.
Thank you for your question.
Once again, if you'd like to ask a question that is star one it is star one to ask a question.
There are no questions waiting at this time, so I'll pass the conference back over to the management team for any closing remarks.
Thank you. Thank you for taking the time to join US today, we certainly appreciate your interest in Royal Gold and we look forward to updating you on our progress during our Investor day on the in the next quarterly call.
Have a good day.
That concludes the Royal Gold, Inc. Calendar year 2022 fourth quarter Conference call. Thank you for your participation you may now disconnect your lines.