Agnico Eagle Mines Limited Q1 2023 Earnings Call

Speaker 1: and he will talk about that. So jumping into the presentation, just hitting the highlights.

Speaker 1: Strong quarterly production and costs, record safety performance, production at 813,000 ounces, cash costs at 832 dollars, and all in sustaining costs of 1125. Particularly, shout out to the operating team. We've talked about inflation. We've talked about cost pressures.

Speaker 1: But as we've said before, what really drives costs are efficient operations and the team delivered that. Solid financial results with record quarterly cash flow.

Speaker 1: Adjusted net income of 58 cents operating cash full of $1.30 a share. There is a big accounting adjustment I will let Dave talk about that later in the presentation Gold production capital and cost guidance maintained for the year next page, please

Speaker 1: success at Detour and Malartic. We closed the Yamana transaction on March 30th. We closed the joint venture with Tech on April 6th. Both of those deals key strategic deals that position us well in some of the best mining jurisdictions in the world.

Speaker 1: We released our 22 Sustainability Report and a shout out to our ESG team who won the Investor Relations Award for Best ESG Reporting in the Industry. So congratulations on that.

Speaker 1: improvement across a number of indicators, safety, water, indigenous employment, things that are important to our business, and a quarterly dividend of 40 cents a share. Now, before I flip, I do want to give a special congratulations to the team in Finland on the ESG side.

Speaker 1: operation by about a third. And so our target across the company is a 30% reduction by 2030, Kitala has effectively done that now. And it's also an opportunity to point out again, that getting to the targets we need to get to are not just company specific.

Speaker 1: initiatives. They're not just industry-specific initiatives, but they have to include broader industry and governments. And this is a perfect example of how much progress you can make when you have access to clean electricity, which, by the way, to repeat virtually all of our electricity on Ontario and Quebec is clean as well. Looking at our, it's just some highlights of the sustainability report again. Sixty-five years, the best safety performance. I can't say that enough.

Speaker 1: I want to take a second to talk about the Dr. Leanne Baker Scholarship. I think a lot of you remember Leanne Baker, an exceptional individual. She was on our board for a long time, really an inspiration to young women as a very successful person on the financial world, on the technical world.

Speaker 1: always important to reduction in fresh water usage. And I'm very proud of this $1.5 billion in local procurement in 2022. That really does make a difference on the ground. Next slide, please. So the rest of this presentation primarily is going to be focused on the key value drivers that are going to move this company forward for years to come. I'm going to have the individual talk about them.

Speaker 1: Again, Natasha will be talking about D2 or Lake where we had record throughput through the mill as Natasha and her excellent team continue to make progress there. And she will also talk about our long-term objective to get to a million ounces a year. Dominic will talk about the Canadian melodic complex.

Speaker 1: The shaft sinking, the ramp construction, and some of the opportunities we see there. And Jean will be talking about some of the initiatives to consolidate the habitivity belt that we've talked about, including amalgamated Kirkland, Upper Beaver, and Wassermax. So with that, I will pass it over to Natasha.

Speaker 2: Thank you, Omar, and good morning, everyone. So as Mars said, I'll provide an update on detour and our vision to get to a million ounces per year. I'm on slide nine.

Speaker 2: And I'll start with the mill expansion. So this has been a journey as you can see from the top graph on this slide. The team has progressed quite a bit over the last few years in increasing throughput at the mill and have had tremendous success in achieving their objectives. And in my opinion anyway since the merger we've actually seen an acceleration of that.

Speaker 2: because of the technical bench strength that came with the merger and the ability for us to leverage the sharing of best practices between Canadian Malartic and Detour. There's a lot of lessons learned here.

Speaker 2: And so we continued to advance on multiple initiatives to increase and stabilize the mail to put to 28 million tons a year by 2025. It's not sooner. And as mentioned in February , the last major initiative in our plan to achieve 28 million tons a year was successfully completed.

Speaker 2: towards the end of 2022 with the installation of the secondary crusher screens.

Speaker 2: And so this quarter, as well as going forward in the year, the focus at the mill will now shift to optimizing the mill processes, to analyzing the wear and tear from the higher throughput to optimize maintenance practices. And as I mentioned before, basically improving the overall mill run time so that the higher throughput becomes...

Speaker 2: Simply more and more consistent over time.

Speaker 2: Basically, what we're doing is tweaking the system now, and aiming term proves the runtime, which is normal at this phase of the expansion process. And some examples of what I mean by tweaking the system is that we're looking at small changes to extend the liner life. We're tweaking the repeat system.

Speaker 2: so that it operates more efficiently in the winter. We're relocating some of the pipelines in the mill just to maximize efficiency of pipe replacement during shutdowns. Those are just a few examples from a list of things that the team is working on very hard. And also while doing this, we're also evaluating a pathway to increase the mill throughput beyond 28 million tons a year.

Speaker 2: The second graph below on the slide shows that it shows our current thinking of how we envision going beyond 28 million tons a year. And I'll just take a minute to explain that. First off, we feel that the infrastructure that we currently have in place has the potential to deliver more.

Speaker 2: once we optimize our mill processes and our maintenance strategy.

Speaker 2: And with that logic, we think that there's opportunity to gain somewhere in the order of maybe half a million to a million tons per year just from that.

Speaker 2: The next is implementing an expert system like we have in some of our other mills. We think that there's opportunity to gain some tonnage there too. And finally we're testing the ability of increasing the percentage of pre-crush material to feed some more feed through the refeed system. And we're also testing the ore sorting capabilities.

Speaker 2: So this is just a vision of where we see the potential to achieve higher tonnage beyond 28 million tons a year. And importantly, these initiatives that I just talked about.

Speaker 2: come with limited capital expenditures. It's still early though, but we do have an experience to e-monsite working on this.

Speaker 2: Now moving on to the second part of our vision to get to a million ounces at detour, and that's the evaluation of the potential of the underground mine. Now the first portion of this study would be to complete an initial underground mineral resource associated with the mineralization that sits just outside of the final pit limits.

Speaker 2: To that end, we are carrying out an aggressive drilling program and Dee will expand on this shortly.

Speaker 2: But we do have more drilling to do and once that underground resource is ready, this will be used as a basis for the underground mining scenarios that we'll be working on.

Speaker 2: Finally, to end, I just wanted to say that the team, my detour, has done an incredible job so far and I just want to take the opportunity to thank them for their hard work but also for their passion at continuing to look at ways of maximizing the value of such an incredible asset.

Speaker 2: But also to echo Ammar's words, I just want to thank the rest of the sites for performing so well as you did this quarter. It's just truly a testament to the caliber of the people that we have here at Isinko. So thank you. And with that, I'll pass the call over to Dominic Dror. Thank you Natasha for Canadian Mararco, maybe before updating on the project and opportunity.

Speaker 1: great assets in one of the best place in the world for mining operations.

Speaker 1: For the Odyssey project, you could see on the map at slide 10, we've reached the first good milestone where the first production blast on March 20th, the Odyssey's outer or body at level 31. So far so good, we saw a positive reconciliation on tons on grade for that first though.

Speaker 1: reached the 54th level, which is the bottom of the Odyssey South or body, as well as the first access where the shaft is going to arrive. In the first quarter, the team will focus not in the first quarter, but in the coming quarter, the team is going to focus on two things. To continue the infield drilling of the Odyssey South as well as the internal zone to better understand those outside.

Speaker 1: and to push the main ramp faster as we can to be at the middle station earlier than we think. That's going to be the first place where we're going to have the loading station for the EAS-GOD deposit. So this is the two focuses.

Speaker 1: On the surface, everything is built to support the shaft sinking, the head frame is ready, the weight siloed, the Galloway is functional, and shaft sinking activities are on the way. It is still early stage. We need drilling and to do study, but teams are also working on the conceptual second shaft. We may need a couple of years to develop that.

Speaker 1: and we are also evaluating other near-surface opportunities on the kinematic property like CAMFLOW and LTA.

Speaker 1: So before transferring the mic to Jam, I would like to thank and congratulate the Canadian Marathic Complex team for their strong health and safety performance in Q1.

Speaker 1: More specifically, the ODC team, which is, let's say, construction and operation teams, we're talking about 250 Agnico employees, 500 contractors, they've reached a triple zero, which is no last time, no medical treatment.

Speaker 1: no modified work in a quarter. It's quite a good achievement for a site in development and construction. Congress is, Congress is a solution to all. And so thank you for your time. We're looking forward to show you our great progress and at the June investor, you're welcome to join us. Thank you. Thank you.

Speaker 3: Thank you, Dominic. Next slide, please.

Speaker 3: Good morning everyone. If you look what we did in the last two years with the consolidation of our land position, with the merger with Kirkland and the acquisition of the Yamenas-Canadian asset, this provides us with the opportunity to leverage our existing asset.

Speaker 3: You see on the map, presently, what we own currently between Makassar and Goldex.

Speaker 3: And considering our upcoming excess processing capacity at LaRonde complex and Kennedy-Martin, we have initiated multiple study to identify the optimal approach.

Speaker 3: More than 10 studies are ongoing to be in position to integrate the best alternatives into our future production plan.

Speaker 3: We have identified potential to add up to 500,000 ounces by the end of this decade. So currently we are focusing on the near surface and AK. On this specific one, we have identified this point for the second half of 24 up to 400 tons per hour. We have identified this point for the second half of 24 up to 400 tons per hour.

Speaker 3: deposit and for sure everything around can you dim our tape.

Speaker 3: We perceive substantial opportunity with the land position we have, with the road, the railway, and we will keep you posted as it's dedicated effort to advance and optimize our asset. On this I will pass to give for the exploration path.

Speaker 1: Thank you, Ryan. Good morning, everybody. 2023, again, we have a large exploration program with over than 310,000 meter of drilling that was completed. And I would say safely completed in Q1 by the 1000 employees and contractor that are working into the various exploration sites.

Speaker 1: where we see a tremendous improvement into the safety performance and I would like to congratulate each of the sites for their excellent performance in the first quarter that has been one of our first best quarter ever.

Speaker 1: in the exploration for as long as we can track. And we expect those good performance and exploration on a various site to lead to some positive result in terms of addition to resources and reserves toward the Iran.

Speaker 1: And to go through a few of them, for start at Laurent's own five, Drulling continued to expand the merillation at depth, now extending the merillation down to 950 meter, with ILI-resolved up to 3 grams over 30 meters and 3.7 gram over 10 meter.

Speaker 3: which are above the current reserve and resources grade at LZ5. So quite an encouraging result and we expect those results to lead to an addition of infer resources below the current limit of 770-770-meter depth towards 950-meter depth by the end of year in 2023.

Speaker 1: At Goldex, in fill result, in a south zone, continued to deliver extremely good result. Much higher grade than the overall grade at the Goldex deposit, including result up to 9.8 grams over 15 meters, 6 grams over 12 meters, which are quite positive on the overall benefit on the at grade at the Goldex facility.

Speaker 1: and also some initial drilling in the W zone, which is located approximately 200m to the west of the main Gold Eggs deposit at shaft number 1, where it was a mystery call result and recently we've resumed drilling through our level 27 exploration drift where we got an intercept of 1.8g over 35m.

Speaker 3: IELTS into Q1 continue to return good results in the DORES deposit in the BCO fold-in, 15 grams over 6m, and also extending the BCO fold-in to the south, a couple of hundred meters with 17 grams over 4.8m.

Speaker 3: So continue to demonstrate our ability to grow the dores deposit. And also an increase of activity at the Madrid deposit where we are shifting towards a larger step out along the mineral strand of the North Tokyo, Sulu, patch 7 trend and we're starting to see some primary results with 6.8 over 3 points on the, but more importantly we're!!!

Speaker 3: of the deposit, which are much better access to test the deep extension of the deposit and during the first quarter in the central part of the Theriagniaque Westmegh from that new exploration ramp, having access to drill the deep portion, some pretty encouraging intercept in the Theriagniaque deposit, 17g over 4.9g.

Speaker 3: and also another deeper intercept 7.5 over 8 meter at 890 meter, which is the deepest intercept reported to date at the Terriganiac property demonstrating that the deposit remains open at depth.

Speaker 3: to the east. So quite positive result for Milyadine. Shifting to Kitela, I would say the highlight this quarter would be in the main zone in the Rimpey area which is in the north part of the deposit where we continue to see that the deposit remains open at depth with typical kind of grade and width for that area with 5g over 9.2m.

Speaker 3: where we currently have 10 rigs operating on the property that completed in excess of 65,000 m in the first quarter with a primary focus at testing in the saddle and west pit below the reserve pit and also continue to extend the deposits towards the west. So within the west pit and saddle area, we have a very good chance of getting the

Speaker 3: some quite nice grade, you know, over good thicknesses, 2.9 grams over 30 meters, 3 grams over 26 meters, 2.6. So this is exactly the kind of intercept we're looking to incorporate it into our vision for the the underground scenarios or interpretation of those higher grade intercept within the deposit.

Speaker 3: exploration also continued to test the deep western plunge of the deposit. That, as mentioned in the previous quarter, remains open with gold mineralization that extends up to 2.4 kilometres to the west of the current resources pit. So a number of positive results at the tour. And on that, I will hand back over to UMR.

Speaker 1: Thank you, Guy. Good job. I'm going to ask Dave to talk about the financials.

Speaker 1: Just looking at the pie graph on the right of the next slide, you can see that Ignico remains very well diversified operationally and to the left at the top we've got the breakdown asset by asset, very strong operating performance as we've discussed and of course when you have a good gold price and good operating performance on the cost side.

Speaker 1: that results in good cash flows. And in fact, this quarter was a record. In fact, we expect another record next quarter because we'll have additional production from the other 50% of Malartic as well. So from a production perspective, Q1 should in fact be the lowest gold production quarter for the year.

Speaker 1: And I also expect a good gold price this year, certainly even higher by the end of the year, is my opinion. So, I think we're in a great position from a cash generating ability.

Speaker 1: On that note, I would just point out that Igniko is currently trading at about 10 times cash flow, which is a fairly low multiple. In fact, if you told me that you'd be in a good gold market, gold would be $2,000 an ounce, I would think that Igniko would probably be trading at least 50% of the money.

Speaker 1: to the next page. Just a couple of comments on our liquidity position. In the first quarter we drew $1 billion on our credit lines to pay the cash component of the Melartic acquisition and since then subsequent to quarter end we've actually entered into a term loan for $600 million with Desjardin and EDI.

Speaker 1: We are heading into the remainder of the year in a very strong financial position and a great outlook I think. Thank you, Dave. Thank you everyone. Next slide, please.

Speaker 1: Everybody on the line here knows who we are and what our strategy is and it's been a consistent strategy. We are not a go everywhere in the world to build a mine. We are very much a regional miner. We focus on the best places in the world to mine.

Speaker 1: based on geologic potential and based on political stability. We are absolutely focused on per share metrics. We don't care about the total size of the company, we care about share price. We are an important part of the community. If you want to be in a place for 50, 60 years, you can't just be a good miner, you have to be part of the community.

Speaker 1: That's important to us, it will always be important to us and drives our ESG philosophy. We have a long history of capital returns, almost 40 years of consecutive dividend payments and last year I think we returned almost $800 million to shareholders. I will finish on one important thought which is

Speaker 1: This regional focus in stable jurisdictions has always worked well for us.

Speaker 1: I would suggest that it is more important now than ever. With what's happening in Ukraine, the east-west split is bigger than it's been since I was a little kid, and I'm 58 years old. And to be sure, China is flexing its muscles with a focus.

Speaker 1: on minerals. And so that positions, I think, for the next several years, an increased focus, not just on what you're mining, but where you're mining. And certainly the strategy of being in good geologic regions with good political stability.

Speaker 1: And frankly, being the strongest minor in those regions is a strategy that will do well for everyone, our communities, our employees, and certainly for our shareholders. And with that, operator, we'll open it up for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session.

Speaker 4: Should you have a question, please press star followed by the one on your touch tone phone.

Speaker 4: You will hear a three-tone prompt acknowledging your request. If you wish to decline from the polling process, please press star followed by the two.

Speaker 4: If you are using a speakerphone, please lift the handset before pressing any keys.

Speaker 4: using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question.

Speaker 1: The first question comes from the head to reek of Credit Suisse. Hi, good morning. Thanks for taking my question. Maybe for Dave, you talked a little bit about the balance sheet. I just wanted to get a sense of target leverage. And I know there's some moving parts with the drawdown from the revolver, but then it sounds like there was a repayment subsequent to the quarker.

Speaker 1: Of course, it always depends on market conditions as well and what is going on at the company at any given moment. But the way I've described it to the board is all of us being equal, let's not touch two times net debt to EBITDA, and we haven't in a very, very long time.

Speaker 1: We'd like to operate at less than one times net debt TBA DAW and our current forecast at spot pricing indicate that we would end this year at about 0.24 times net debt TBA DAW. So very, very conservative balance sheet and we intend for it to stay that way.

Speaker 1: To quote Sean Boyd, who's been here for apparently 40 AGMs, one of the reasons that we've been around for more than 60 years is because we've never taken on too much financial risk. And we're going to keep that very conservative balance sheet and lots of liquidity to make sure that we can...

Speaker 1: do all those big projects in the future.

Speaker 5: That's very clear. Thank you. Thank you. The next question comes from Anita Soni of CIBC. Please go ahead. Good morning, everyone. Firstly, Dave, congratulations on your well-deserved retirement. Congratulations on the quarter, everyone.

Speaker 5: My question is with respect to the cost guidance as we look at it over the course of the year. So you came in below the low end of your cost guidance for this quarter. Can you talk about some of the moving parts over the course of the rest of the year Q2 and then to Q4?

Speaker 1: that may see you trend upwards? And can you also talk about the inflationary pressures that you've seen abating? Hi, Anita. It's nice to hear from you. The team did a great job on cost control and...

Speaker 1: First and foremost, it's always the operations. When the operations do a great job, the costs are naturally in line. We are seeing some relief, frankly, on the inflationary side. We were talking to our procurement team the other day.

Speaker 1: We are starting to see, frankly, from the merger with Kirkland Lake, we said it would take a while for some of this to come through. Some of that is starting to come through with some of the new procurement contracts. The team has been working exceptionally hard on that. We've had some currency tailwinds that help us.

Speaker 1: So I think we're very comfortable with the guidance that we have with costs. It's clearly given the volatility we've had over the last couple of years. It would be probably irresponsible to change it at this point, but it certainly is a good start.

Speaker 5: Most of the benefit goes to the operating team and the procurement team. Okay, I'll leave it there and the next person asks. Thank you. Thank you. The next question comes from Tanya Jackaskonic of Scotiabank. Please go ahead. Hi, good morning everyone and congrats on a good quarter and congrats Dave on the retirement.

Speaker 5: It's good to be back on the call after being restricted for a while as well.

Speaker 5: Okay, a couple of questions. Can I just start on the, Anita started on the cost side, but I just wanted to get an idea. As I look at 2023, can you provide some guidance for the remainder of the quarter in terms of, you know, how do you see production, any assets that are back and weighted?

Speaker 5: and where you have maintenance downtime so I can get those correct in my forecasts. So let me start with that first.

Speaker 1: I will start with the big picture on the remainder of the quarters and then maybe Dominic and Natasha you can hit some of the specifics. Welcome back, Tanya, it's nice to have you back online now that you are not restricted. The first quarter is going to be our lightest quarter with regards to production. That is simply because it doesn't include 100% of the production. It's going to be a quarter that will

Speaker 1: of Malartic, which our numbers will going forward. We don't see any particular problems with any of our production. We remain very confident. I would say that it is probably normal to have glitches, but that's one of the benefits to have a...

Speaker 1: diversified and multiple mines. And our team are as good as anyone in the business with dealing with these things. But maybe Natasha and Dom, if there are any specific items. Just to add to that, on my side anyway, I see it remains pretty steady over the course of the next three quarters. We might have some changes in mining sequence here and there, but overall, quarter over quarter,

Speaker 2: and so we should see costs coming slightly down from that perspective, Tanya.

Speaker 2: should see costs coming slightly down from that perspective, Tanya.

Speaker 5: So, maybe if I think about any downtime at KITLS or Autoclave, should I – is there anything specific I should think there?

Speaker 6: Hi Anita, Q2 is going to be the lowest quarter because of the shutdown, our eight month shutdown.

Speaker 5: Okay. Thanks, Dominic. Just on, so as I look at the year, is it safe to assume that all of Q2, Q3, Q4 are generally even production-wise? Yeah, roughly.......

Speaker 5: Okay, so that's helpful. Thank you. And then can I just ask about the inflationary pressures that you saw some easing? Maybe some examples of where you are seeing it. I understand productivity, you know, has been helping, but can you talk a little bit about where you're seeing when you look at your cost structure and you look at the labor, the consumable fuel other? Can you just talk to us about where you're seeing the easing and sort of a lot better? OK, let's open the security system for a bigger gas collector. At the exit

Speaker 1: a bit more examples as to what you're seeing? Well, I'll go first. I mean, we are seeing easing, so for example, in Finland on electricity prices. You know, they're not back to where they were, but they're probably half of what they were at the peak. Its higher than anything else that maybe gave them a better chance. Maybe they got too aims behind a smaller than their350 billion dollars.

Speaker 1: you know, the prognosis looks good going forward. You know, steel prices are down, fuel prices are down, some of the consumable prices are down, and we are getting through the worst of, and we've talked a lot about this, the worst of the lack of human capital. You know, people were able to operate.

Speaker 2: March and definitely in April as well. Electricity for the quarter at diesel was down in comparison to where we assume for budget levels. But in other areas like cyanide and grinding media on my end anyway as the unit rates remain flat.

Speaker 6: And maybe the one which we still see pressure is mainly maintenance parts from the supplier. Those costs remain high and especially the electrical material. We don't see a decrease yet in those ones and as Ammar mentioned, workforce is not as high.

Speaker 6: remains on the, let's say, didn't decrease, which is stabilized but didn't decrease. But maybe more, what is very important too is on the supply and the logistic. In the last year challenge that we had, even though you would like to pay, if you don't have the parts, you're done. This year, this is going away, the supply chain is back on track. So this is...

Speaker 6: very positive and contributing to do a good production which has the end of the day helping the cost. I see more and more contracts now from the procurement team which are Canada's bigger contract where we have the merge together and from that there is of course opportunity by the volume, higher volume.

If I was to think back to next year, and I think on your call you had mentioned inflationary pressures up to 10%, would it be safe to assume that from that 10% we've seen a couple of percent of ease, or is it just still relatively flat? I'm just trying to get... Right.

magnitude of easing.

Well, I mean, you know, if I give a forecast, the only thing I know is I'm going to be wrong.

It's probably not unreasonable Tanya, maybe, I don't know, maybe 8% is better than 10, but you know, there's so much volatility, take that with a grain of salt. I appreciate that, it's just to see if we started to see it come off or just it stabilized. So it seems as though you're saying it's come off somewhat. A little bit, yes, absolutely.

Okay, and then if I could get one more in for Guy just on the expiration news and the reserves and resources I know Guy it's very early days, but as I think of of your of of of Agnico and I think of you know Getting to year end in 2023. No, that's not far away

Is your target to replace reserves at operating mines? Do you think with what you have going we can get there this year?

It's always an excellent question, Tanya. Thanks. I always ask it. You had to. No, I think we see positive indication at several of the mines. We see some of them are in a good position to completely replace. As you mentioned, it's very early days, although we're planning to deliver a couple of studies on key projects like easement and construction. So we're looking at that. But we're looking at the number of people who are in the

and what we're going to be depleting this year from mining.

That's good to hear. I'll leave it for someone else to have. Thank you very much for taking my questions. Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. The next question comes from Mike Perkin of National Bank. Please go ahead.

Hi guys, yeah just one kind of question that hasn't been asked is around depreciation with the accounting change on Canadian Malartic, do you still see your guidance of about just shy of 1.4 billion depreciation is that still

or kind of up for review.

Yeah, it's exactly that, Mike. It's, let's call it up for review because the purchase price allocation is absolutely preliminary at this point. We'll be working on it until at least the end of the year. So a lot of moving parts. But that being said, I think you are probably correct that as of right now with no other order of managers, you might be surprised at what a trend this money might be made in.

There is going to be, that $1.5 billion is preliminary and there may or may not be noise associated with it during the year. It's not a big deal, it's accounting, but just a heads up on that.

And would that impact your expected tax rate for the year?

Yeah, I guess if you have less net income, you have less.

You know, more taxes less earnings. But again, it is too early to say where this is going to go, but let's review it quarter by quarter to see where we are on the PPA and see if we change our guidance. Because we're very careful quarterly about making sure we update any of the guidance

at this time, please proceed with closing remarks. Well, thank you everyone. It is a pleasure and as I've said before, when the operating team does a great job, my job is easy. So we'll end it with that and thank you very much.

Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and I ask that you please disconnect your lines.