Q4 2022 SSR Mining Inc Earnings Call
Hello, everyone and welcome to SSR Mining's fourth quarter and year end 2022 conference call. This call is being recorded.
This time for opening remarks, and introduction I would like to turn the call over to Alex on check from SSR mining. Please go ahead.
Thank you operator, and Hello, everyone. Thank you for joining us its our mining fourth quarter 2022 conference call during which we'll provide an update on our business and a review of our financial performance.
Our fourth quarter 2022. According to statements have been presented in accordance with U S. GAAP.
These financial statements have been filed on Edgar and SEDAR. The ASX and are also available on our website to.
To accompany our call Theres, an online webcast and youll find the information to access the webcast in our news release relating to this call.
Please note that all figures discussed during this call are U S dollars unless otherwise indicated.
Today's discussion will include forward looking statements. So please read the disclosures in the relevant documents.
Joining us on the call today are rod Antal, President and CEO and Allison White CFO .
Now I will turn the call over to Rod for his opening remarks alright.
Alright, Thanks, Alex and Hello to you all and thanks for joining us.
We closed 2022 on a positive by meeting our revised production and cost guidance. Thanks to a solid fourth quarter with all four operating assets were running at a steady state.
We started this year with an improved outlook and earlier. This month, we received funds and confirmed our expectations for a strong year of production and free cash flow with the release of the three audits.
To reinforce the point on cash flow, we've assumed it I didn't have the dollar gold price and with a 2023 production guidance of 700 to 790000 ounces, we would expect approximately $40 million of free cash flow this year.
The other positive begin issue is the arrival of Bill Mckibben, who joined the <unk> team as EVP ops and sustainability.
We are fortunate to have someone with Bill's global experience and successful track record with joined the company from Barrick.
The introduction of the first set of experience all eyes will be beneficial to the business.
Bill its been busy visiting each one of their thoughts to establish priorities.
And looking for opportunities to improve our business and you'll hear from him later in the year.
So now back to the numbers.
But they are 20 twenty-three headline cost.
Our elevated year over year it is not just inflation.
We are also executing on a number of expansion of us to improve the outlook for instance, or in the future and I'll discuss these further during the call.
Before we move on some key highlights from the fourth quarter and full year 2022.
The business delivered strong fourth quarter production of 193000 ounces at an all in sustaining costs of 30 $858 per ounce.
Full year production of 624000 ounces at an all in sustaining costs of 1300 and $39 per ounce well within the company's revised full year guidance ranges.
In 2022, we returned approximately $160 million to shareholders through the combination of our base dividend program at 100 million dollar in share buybacks.
This marks our second consecutive year, delivering a P leading 5% capital returns yield.
We continue our successful portfolio rationalization process, but the style of Peter rare and some non core equity positions generating approximately $135 million in total consideration during the year.
Cash proceeds were redeployed into the target go and telco type of acquisitions.
And finally in quarter, four we generated almost $100 million in free cash flow, which is really an impressive result.
So this is moving onto the next slide on a as Qi.
I'd like to start by first acknowledging the tragic earthquake impacting Turkey, and Syria and thoughts go out to all the people who either directly or indirectly have been impacted.
You're paying close attention to the situation, where a mine rescue teams have been assisting the rescue efforts on the ground.
Yeah people by the employees and business partners are the cornerstone of our business.
We operate and engage as we in previous G is underpinned by US you saw them on these core values well.
Whilst we are doing considerable work on all aspects of ESG today I'd like just focus on safety.
In 2022, we've worked on improving the systems and protocols as the foundation of our site operating systems.
We continued to deliver against the goals outlined in our annual sustainability report, including the role that the integrated management system and the progression of third party closer reviews across all our operating sites to ensure a positive post money future for all our stakeholders.
But we also worked to develop a water stewardship strategy as part of our focus and continually reducing our environmental footprint going forward.
The progress and we'll highlight them and their plans for the year ahead, and our upcoming sustainability report.
In the year ahead, we will increase our focus on field leadership and the quality of safe production.
So getting our people on site is our top priority and it is a key improvement point for 2023.
So moving on to slide number five.
As I previously mentioned, yeah, 20, twenty-three got into enrolling three year outlook outlined to stable production platform of approximately 700000 ounces through 2025.
Our focus in 2023 is the continued advancement of our name on exploration and resource development programs as we look to support the spice for an annual production over the longer term.
Across the portfolio, we have a number of brownfield exploration and development opportunities that we are confident will drive research.
Inversion to ensure the 700000 ounce of your platform he's met or expanded upon for the remainder of the decade.
Later this year, we expect to showcase maiden mineral reserves the chip, let's see two expansion projects as well as a new mine plan that incorporates ounces from Mary goes new millennium target.
At Seabee, and Puna Mnemon drilling initiatives are well advanced and present, the opportunity to build reserves and extending mine lives at each asset.
In short while the production platform outlined in this slide is largely centered on existing mineral reserves only we see several opportunities to build on these existing reserves in the future.
In addition, we continue to remain active through the evaluation of strategic opportunities across the sector and in particular in our core jurisdictions.
And despite the flurry of recently announced deals we will remain disciplined.
With respect to any future opportunities.
So on to slide six and I'm going to hand over to Alison.
Thank you Rod and Hello, everyone.
Okay on our capital returns program and track record, which we are well aligned to the three pillars of our capital allocation strategy.
Reinvestment in growth balance sheet strength, and returning capital to our shareholders.
During 2022, we returned nearly $160 million to shareholders through the base dividend and share buyback program. This builds on our 2021 return with total returns of $350 million to shareholders. Together. These programs provided two consecutive years with a 5% capital return skills.
Our approximately $250 per gold equivalent ounce produced over that same period of time.
Currently our base dividend, yielding approximately 2%.
We maintain the ability to supplement that dividend with share repurchases under our share buyback program.
Slide seven well provide a review of 2022, so let's take a look at our results.
A few of the key points that are relevant to consider at the end of the fourth quarter and are worth highlighting today.
So your production of 624000 ounces at an all in sustaining cost of $1339 an ounce was in line with revised guidance.
Fourth quarter production of 183000 ounces at all in sustaining cost of $1352. An ounce was a solid finish to the year and included the delivery of nearly $100 million in quarterly free cash flow.
During the quarter, we issued press releases that detailed additional exploration success of Checkmate Cafe extension Marigold and Seabee.
We are excited by these results and have expanded our exploration budget in 2023, and an effort to continue advancing these brownfield opportunity.
We closed the acquisition of an additional 30% of cartels Hefei.
<unk> successfully redeploying proceeds from noncore asset sales into our core jurisdiction.
And each of the operations, we had the following highlights.
A chart blur, we accelerated maintenance during the suspension to alleviate maintenance that was previously planned during the fourth quarter of 2022.
It allows the sulfide plant to operate at a record average throughput of more than 8000 tonnes per day during the fourth quarter.
Marigold delivered strong fourth quarter cost performance, producing 63000 ounces at an all in sustaining cost of $1160 an ounce.
<unk> delivered strong operating performance with mining and processing rates, averaging nearly 1300 tonnes per day in Q4, and Pune delivered consistent another consistent quarter and that is all your production and cost guidance targets.
Overall, a very positive close to an eventful year.
Now, let's move on to slide eight to discuss our guidance and our outlook.
Earlier. This month, we released our 2023 and rolling three year guidance update as noted in that release, we are expecting a strong 2023 with respect to production and free cash flow.
Over the three year period, we continue to expect average annual consolidated production of approximately 700000 ounces.
In 2023, our cost profile incorporates initiatives at our two largest assets trippler and marigold.
Sure Blur, we expect first production from Checkmate Cafe extension in 2023, and the costs associated with the development of the Chatbot Cafe extension open pit or <unk>.
<unk> in our all in sustaining cost.
At Marigold, we have re sequenced development of the Red dot target, including the startup waste stripping activity and the acceleration of $28 million for haul truck purchases.
The Red Dot stripping costs are included in ASC at Marigold and account for nearly $100 an ounce of SSR mining corporate level coffee profiles.
As we look ahead, we expect 2023 will mark the high point for sustaining capital over the three year period.
Moving forward, we also expect to deliver a number of catalysts some of which you can see on this slide we.
We are advancing exploration updates across the portfolio further demonstrating the wealth of development opportunities available across SSR mining.
We've increased our exploration and development budget to $94 million up approximately 50% over 2022, and we expect the exploration programs will continue to support our resource development and conversion as we seek to build mineral reserves and extend mine life at each of our assets.
We are advancing the pre feasibility study for the <unk> expansion project at our park as well as internal district Master plans for C D Marigold and Puna.
The purpose of the district Master plans is to capture growth opportunities for each of the assets that's drilling advances while at the same time consider considering other important aspects like permitting and technical requirements to ensure the mine can keep our positive drilling results into reserves and growth in as short a time period is.
Possible.
Internally, we have a lot of excitement about the future of each of the asset.
And our exploration plans in 2023 are designed to confirm and expand on this deal.
So let's move on to slide nine and talk about the financial results.
For our financial results. This quarter, we produced nearly 183000 gold equivalent ounces, bringing full year production to 624000 gold equivalent ounces.
With revenue of $306 million.
Gold equivalent sales of 172000 ounces were slightly lower than the ounces produced due to a temporary strike or port workers that impacted the timing of when concentrate from tuna could be loaded to shipping vessels.
Fourth quarter revenue was $302 million driving attributable earnings of $94 million or 43 cents per diluted share.
While adjusted attributable earnings were $26 million or 12 cents per diluted share.
Free cash flow was $97 million in the quarter or $74 million before working capital changes.
All your free cash flow was $23 million or $171 million before working capital changes.
On the right hand side of the slide I will touch on the reported 12 cents of attributable net income per diluted share in the fourth quarter, which is calculated based on the company's definition of adjusted attributable net income per share.
Attributable earnings of 43 cents per diluted share with adjusted for a number of items, but most significantly for the gain recognized from the acquisition of an additional 30% interest in the cartel type of joint venture.
Adjustments for foreign exchange and other minor items, including the Mark to market of our noncore equity investments are also shown on this slide.
Turning to slide 10, we can talk about SSR mining financial position.
At the end of the quarter the company held cash and cash equivalent balance of nearly $700 million with net cash of nearly $400 million and total liquidity of nearly $1 billion.
We continue to maintain a strong cash balance and balance sheet. Despite incurring a $100 million in share repurchases $59 million in dividend payments to shareholders $71 million and scheduled debt repayments and $170 million in cash outlays for strategic M&A activity that all occur.
During 2022.
With our existing net cash position and the expectation of a strong year of free cash flow ahead, I would like to reiterate our three priorities with respect to capital allocation.
First we will continue to reinvest in growth for the business, including our exceptionally high return chocolate cafe extension in situ projects as well as our exploration programs, where we increased our portfolio wide budget by 50% over our 2022 spend.
We will continue to evaluate external opportunities for growth building on our track record in 2022 as demonstrated by the recent acquisition of Tiger bowls and cartels that back.
Next we are committed to maintaining a robust balance sheet to weather volatility in the commodity price environment and to ensure that all of our aforementioned capital commitment that servicing requirement and base dividend payments are fully funded even in the event of a potential downturn in the gold price.
The quarterly base dividend at seven cents per share is payable to our $1350 an ounce gold reserve price.
Finally, the third pillar of our capital allocation program, we remain committed to capital returns.
In 2022, we returned nearly $160 million to shareholders, our second consecutive year with a capital returns yield of approximately 5% in.
In 2023, our base dividend is yielding approximately 2% and we maintain the option to supplement those returns with our existing share buyback program.
And with that I'm going to turn it back over to Rod for an asset level review.
Alright. Thank you very much Ellison is a whole lot of when we kick the call off we are pleased to be starting twenty-three with all our assets running at city site and we expect to deliver a very strong year of production and cash flow.
I want to point out that given the mine schedule and grade profiles for each asset we expect our consolidated production will be more weighted to the second half with 55% to 60% of our planned production coming in heights too.
One more point of granularity, we expect quarter, one will be our lowest production quarter in the second half will be the strongest cost and cash flow performance.
Now, let's go through each one of the assets starting with Sherpa on slide number food.
<unk>.
Thank you Jackson as part of a door.
But truthfully, we successfully restarted operations and closed the year with a strong finish delivering quarterly record throughput more than 8000 tonnes per day in the sulfide plant.
Strong sulfide plant performance.
The mine actually exceeded its revised 2022 production guidance.
With full year production of 191000 ounces sitting yourself will the cheapest to deliver production guidance of 240 to 270000 ounces in 2023.
2023, we expect to deliver the first gold production from checkmate type of extension.
Recall that the checkmate Tibet extension is expected to add one point to me linear ounces to chip is life of mine.
The project is a major contributor to exercise longterm production protocol and this is an incredibly quick transition from discoveries just six years ago.
The total conversion costs. These P, leaving only $6 for discovery plus $58 per ounce for development.
Further at the end of last year, we announced a number of positive exploration results that could potentially drive further growth.
Of course with the startup of New mine comes development costs that are incorporated in <unk> chip was sort level all in sustaining costs to shoot.
While this provides a short term mismatch is the mine and ultimately gold production ramps up in the longer term check my trip I provides a very attractive cash flow generation and increases in gold production.
With respect to our other growth initiatives, we continue to progress C. Two expansion project towards a PFS expected in the second half of this year.
See two represents the next phase of growth, which you apply it as another extremely high return project for the business.
Additionally, we closed the acquisition of another 30% in the chocolate chip out a joint venture in the fourth quarter and this transaction delivers SSR mining's, 80% ownership of being tortured district, streamlining operating and exploration activities across the portfolio.
Notably the Checkmate <unk> extension project continues to show a potential on the Cauca tipped by ground and the licenses also hosted a number of other regional exploration prospects, including Mega dairy.
We'll be part of the focus for the 2023 exploration effort.
As you can appreciate we have a full suite of knee and longer term growth opportunities across the triple a district and will continue to aggressively advance each one of these projects pain targets during the year.
Moving onto the next slide with Marigold.
Murray Garnick Marigold again delivered quarter over quarter improvement with quarter four production of 63000 ounces and all in sustaining costs at $1160 per ounce.
Bringing production to the bottom and if its revised full year guidance range.
I would also like to speak to the challenges we faced Mauney final golf.
Sorry money fund or is that Marigold in 2022 as important context for this year.
And 2022 we mine or for three pits at the northern end of the property that can tie into material quantity five doors.
These foreign news slowed solution flow through the pad and hence slowed their production of gold.
In quarter four we commenced a re roofing program on sell 24, where we start to find those to increase the solution application right, which proved successful in meeting guidance.
Since then we have transporters of the heap Leach pad and determined that a gravity World program is the best course of action to accelerate the recovery of the remaining 25000 ounces of gold.
I'd like to emphasize that during this work. We also reconfirmed this is not a metallurgical issue as evidenced by Golden solution.
We expect three money 25000 ounces to be recovered by the end of quarter two.
The other point I would like to Mike.
Is gold ore mined in 2023 is more representative of a typical for marigold.
We will return to the normal leach cycles.
This context is important as it will help explain why the production is 60% to 70% weighted to the second half of the year of this asset.
Marigold is poised for a very strong 2023 with production of 260 to 290000 ounces.
The cost profile in 2023 reflects the place of repurchases experience across the board as well as the accelerated spend associated with the re sequencing why stripping of the red Dot target.
As we have discussed previously a key focus for our team because your optimization of the Marigold mine plan through the remainder of the decade.
The outcome of this work was to bring forward the purchase of three new haul trucks to all of this year to begin stripping at Red dog.
These new trucks.
And why stripping accounts for approximately $100 per ounce basis, our mornings corporate level all in sustaining costs, but will be a benefit to the production profile at marigold in the longer term.
In the fourth quarter, we realized positive exploration results of Marigold focusing on Mnemon.
Oxide material that has the potential to complement the existing Marigold mine life XP.
Exploration and resource development activities continued married go away, we expect to be able to include some of the upside potential in future updates and particularly with the new millennium target.
Belong beyond new Millennium, we see further upside from the Trenton Canyon, and Buffalo Valley targets, where we are focused on evaluating the potential potential for longer term pathways for production of Marigold.
The move onto slide number four in the CBD.
So it'd be delivered record full year production in 2022, reflecting the very strong grades encountered in the first quarter of the year.
And quarter for CBA mine grade well below expectations, but positively the plane operator.
Coverage of 3800 tonnes per day.
This is a phenomenal achievement for surgery, and a testament to our continuous improvement proven and issues at the asset.
In 2023, we expect CB type of second half weighted production profile, reflecting the improving grade profile mine during the year.
Our aggressive exploration and resource development program has been expanded in 'twenty to 'twenty three that's where you have to convert mnemon mineralization into reserves to expand and extend the remaining life of mine for the asset.
We're also drilling potential extensions at the St join mineralization to dip as we evaluate the longer term opportunities.
In the fourth quarter, we delivered another batch be exciting drill results from seabee, including the high grade intercepts immediately adjacent to the existing underground infrastructure at St. Georgia.
In addition, we are advancing are exploration activity more regionally, including a pokestop, that's where we see potential for future growth.
These targets are located approximately four kilometers north west is a secret email and could present, a long term monitoring opportunity that been let's see based future.
If you go onto the next slide on Pune.
Printer continue steady state performance and delivered full year production and cost in line with your original 'twenty to 'twenty two guidance.
Sooner is again poised for another strong year in 2023, and we expect the mine will sustain similar production levels over the three year God its period.
We restarted exploration drilling at Puna in 2020 two.
I've been saying very positive results on the Mnemon activity so far.
As a result, we have expanded our exploration program for 2023 as we seek to extend the tuner lots of mine and the mine reserve conversion.
Let me answer the last part.
With that I'd like to offer a brief summary.
The business is in great position and we're excited about the opportunities ahead.
While our 2023 all in sustaining cost profile is slightly higher than our 2022 results. We are working hard to mitigate the impacts of cost pressures and also looking for opportunities to improve the business performance into 2024.
We continue to expect to generate strong free cash flow in 'twenty to 'twenty, three and will bring a number of material catalyst for the market as discussed throughout the call.
However, all are back to normal 2023 and we look forward to live bringing a very strong year.
So with that I'm going to hand back to the operator for any Q&A.
Thank you Ms. Sorrento, we will now begin the question and answer session.
Join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request.
Youre using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
We will pause a moment as the callers join the queue.
The first question comes from Louise Habib from Scotiabank.
Please go ahead.
Thanks, Operator, Hi, Ross.
That's the sake.
Just a couple of questions for me.
Number one looking at three year guidance and this is specifically at Marigold.
What was the last medical detector board.
You mentioned that you brought forward Red dog stripping, which I believe was supposed to take place in 2026 now based on this we see production dipping to approximately 150000 ounces in 2025 mm and based on a circuit board production was supposed to kind of rebound back all the way up to 300000 ounces after the dip.
Production.
How should we be really looking at this production kind of going beyond 2025 is is that mine plan is still intact or should we see a difference when do we come out with your Tech report.
Yeah. Thanks, Hi, buys so look I think the.
The point here is we're always looking at ways to optimize mine plans across the business and as we looked at the opportunity at Marigold. There was I'm really the five because if you remember was trying to smooth that as much as we could.
So when we when we ran those of optimization.
Schedules it was clear to us that by bringing full with the purchase of the three whole trucks. This year.
There was a definitely a any incremental NPV value to be had.
By accessing Red Dot Hum at an earlier time frame. It also it also helps with the re sequencing that we that we also were able to.
Improve the production profile, along the way, while we access the a red dot lighter lighter wrong, but.
But 2025 will be will still be the lower U I guess, if you want to look at it like that and then we rebound up as we get into those high graduate at Red Dog. So it's a it's a real a bit of shifting around.
The way, we were and will continue to look at it and advance there's optimization if it's as this year progresses as well.
Yeah, Thanks for that and just a second part of this question is regarding the drilling completed at Marigold in 2022.
Obviously that was not incorporated into the reserve update that you released today and then a.
Second part obviously can you provide us some color as to whether or not this could impact the front end of the mine life essentially what I'm trying to get to is can we smooth out production. The dip in 2025 with with incorporating some of that ounces into into 'twenty 'twenty five.
Yeah. It's it's a it's obviously an interesting question device and we didnt incorporate it. It is a it is definitely the the old reserves that where were being optimizing.
Some of the drill results around new Millennium, you heard encouraging and again it was targeted specifically for the potential for near term opportunity, we still got to complete that work.
And employed some of the drilling program, which will form the basis of the new reserve updates that will do it for Merry go and does still have some potential to to feel that valley for Assam moving forward, but we're still still a work in progress.
Okay. It sounds good.
I'll stop there and then maybe jump back in the queue. Thank you.
Thanks for that.
Yeah.
Yeah.
Once again, if you have a question. Please press Star then one.
The next question comes from Lawson Winder from Bank of America Securities.
Please go ahead.
Great. Thank you operator, and good evening, Rob and Allison.
Here from you all.
I was hoping to just ask a few questions. So first on the on the 2022 guidance from C D and E and kind of like how it moved around and then and then where you guys ended up for the year a little bit below the revised guidance. He when he started the year at $1 15 to 120 went to $1 50 to 160, and then came in kind of in the middle of that.
I would love your help in trying to understand what was driving the lower inspect lower than expected gold production for.
For example, I mean was the geological interpretation different than what you had thought it was a dilution or continuity and then as a follow up to that.
Weren't those grades just pushed into 2023.
Yeah, it's it's.
Good question Lawson said, we we originally hit to you running with the.
Access to that that high grade portion I mean quarter. One if you remember that obviously gave us a big lift and Ah. We we are we're able to get almost another 20000 ounces or the overall the expectation towards the end of the year was there was another area that we had targeted.
For the same potential for an uplift over the actual reserve.
Through some drilling but as it turned out when we were in the actual stope itself. It underperformed. So it was as simple as that it was more not giddy and more control and then we actually had anticipated.
So it that's why it didn't carry over into this year.
Okay. That's that's very helpful. And then I wanted to ask about the.
The general cost inflation in the business would you be your operations are seeing the most insignificant impact from cost and then what in particular would be driving that.
Yeah I'll.
We'll look at it it's across the business I'll, let Allison.
Actually provide a much better explanation I think it depends on which assets you're talking about because they're all they're all different.
Yeah, all across the board the fuel input pricing is definitely under pressure.
Hum are light because I'm in some locations are under more pressure because of higher inflation.
And then in other locations, where we would normally get the relief from exchange right, where we're not seeing it particularly in Turkey at the moment.
But we do expect that to sort of turn around as says as a as he progresses, but it it really is it easier to across the board law. So no I don't think we're on an island here I think it it industry Hum issue.
We have done actually quite a lot of good things to mitigate the costs that don't come through.
We've been able to take savings throughout our supply chain efforts a wave of look for efficiencies in the morning.
And processing to to do things with the the same resources, but get a get a better result, but.
Clearly you know that sort of 10% to 15% headline inflation is has kept pace that so a clear focus for us in this year as we move into 'twenty.
'twenty 'twenty four to keep on going tell us when you want to add anything else.
It's going to offer up the 10% to 15% that we've seen across the board.
From an inflationary perspective, and just reiterate what Rob did mentioned previously which is historically, we've seen inflation and devaluation.
Be in lockstep with each other and we're seeing a divergence, especially in Turkey and between the two we do anticipate that you know through the year, especially with the upcoming elections that we will see a change and that but for now that's sort of the landscape. That's what we're looking at them, but does contribute.
As to the overall change in the cost profile at tripwire.
And maybe just a follow up to it.
At Marigold.
Where where you don't have the benefit of FX depreciation to offset that or are you, saying that inflation at that same 10% to 15% rate.
We are seeing that 10% to 15% I'm pretty equally across the portfolio.
Okay Fantastic and then just yeah, maybe maybe one more question on the buyback.
Just to perhaps help us understand how you think about that.
And in the context of you know even with higher Capex in 2023, I mean SSR should generate.
Quite a substantial amount of free cash flow.
And in light of that perhaps would have expected maybe a bit more specificity around that your buyback and your intentions around share repurchases. So when you say you'll be optimistic.
How would you define a an optimistic.
Opportunity in order to buy back shares in May.
Maybe in terms of what metrics you look at it.
How free cash flow and net cash factor in thank you.
Yes.
Yeah. So thanks for the question up and so you know in terms of our general approach to the buyback program, where we're going to remain consistent in 2023 with what you've historically seen we still do have some room on our existing buyback program that expires in June of 2023, and so we <unk>.
The opportunity that's out there and if we if we want to.
Consider repurchases and we also want to be comprehensive in our look at how we're returning capital to our shareholders and so we really do want to evaluate if there is a different.
Deployment strategy or if that is the appropriate deployment strategy given some other concepts that we're looking at and evaluating.
Sorry, when you say concepts.
Are you referring to growth Capex.
Yes growth Capex.
Okay got it thank you very much.
Yeah.
This concludes the question and answer session I would like to turn the conference back over to Mr. Entel.
Alright, Thank you and Doug again, Thanks, you all for joining us today and.
<unk> taken the time have a good day. Thank you.
This concludes the conference call.
Feel free to disconnect.
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