Q2 2023 Osisko Gold Royalties Ltd Earnings Call
Okay.
Good morning, ladies and gentlemen, and welcome to the Cisco Gold royalties Q2, two three results conference call. After the presentation. We will conduct a question and answer session. If you'd like to ask a question. Please press star followed by the number one on your telephone keypad. Please note that this call is being recorded today August 10 2023.
At 10, a M eastern time.
Operator: Today on the call, we have Mr. Paul Martin, Interim Chief Executive Officer, Mr. Frédéric Ruel, Chief Financial Officer and Vice President, Finance, and Mr. Iain Farmer, Vice President, Corporate Development. I would now like to turn the conference over to our host today, Mr. Paul Martin. Good morning, everybody, and thanks for being on the call. I'm Paul Martin, the Interim CEO of Osisko Gold Royalties. I'll run through the presentation and then we'll open up the line for questions, and I have Fred and Iain in the room for anything that I can't answer. For the participants on the line, you can submit your questions in advance through the webpage. The presentation is available on the website as well as through the webcast. As stated, I am the Interim CEO, having committed to assist the board in leading the company
Today on the call we have Mr. Paul Durham, Chief Executive Officer, Mr. Fredrik, <unk>, Chief Financial Officer, and Vice President Finance and Mr. Ian Farmer, Vice President of corporate development.
I would like to turn conference over to our host today, Mr. Paul Martin.
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Hey, good morning, everybody and thanks for being on the call.
Thanks, Paul Martin the interim CEO of Cisco gold royalties.
I'll run through the presentation and then we'll open up the lines for questions and I'll have Fred and Ian in the room.
Or anything.
But I can't answer for.
For the participant participants on the line you can submit your questions in advance through the web page.
The presentation is available on the website as well as through the webcast.
And as stated I am the interim CEO have been committed to assist the board in leading the company. During the transition period. We have also made the commitment to remain in the CEO chair until the board has completed its process and announced a permanent successor.
Paul Martin: During the transition period. We have also made the commitment to remain in the CEO chair until the board has completed its process and announced a permanent successor. Please note there are forward-looking statements in this presentation and that all amounts are in CAD unless otherwise noted. We're pleased with the performance in Q2, both from a GEOs earned perspective and from a transactional basis. 24,645 GEOs earned in Q2, a nearly 11% increase over the comparative quarter. With 47,756 GEOs for H1, which is nearly a 15% increase over the comparative period, puts Osisko in a good position from an annual guidance perspective. Gross cash margins of 93% were maintained in the quarter and for the year to date.
Please note there are forward looking statements in this presentation.
And that all amounts are in Canadian dollars unless otherwise noted.
We're pleased with the performance in the second quarter, both from a Geos earned perspective.
And from a transactional basis.
74645, Geos earned in the second quarter, and nearly 11% increase over the comparative quarter.
With 47756 Geos for the first half, which is nearly a 15% increase over the comparative period.
Cisco in a good position from an annual guidance perspective.
Gross cash margins margins are 93% were maintained in the quarter and for the year to date.
Paul Martin: The company had CAD 70 million in cash at the end of the quarter and declared and paid its quarterly dividend of CAD 0.06 per share during the quarter, after increasing it by 9% from CAD 0.055. Increases in revenues and operating cash flows followed the increased performance in GEOs earned and represents a 35% increase quarter over quarter, and on an annualized basis, represents operating cash flows of approximately CAD 200 million. Net earnings of CAD 0.10 per basic common share were essentially flat compared to the prior quarter due to non-cash items. Adjusted earnings of CAD 0.18 per basic common share showed an improvement over the prior quarter of CAD 0.14 per share. The company now has 23 producing assets, up two from the prior quarter, including the first reporting of GEOs from the CSA Silver Stream in Q2, which has an effective date of 1 February 2023.
The company had $70 million in cash at the end of the quarter and declared and paid its quarterly dividend of <unk> <unk> per share during the quarter after increasing it by 9% from five five cents.
Increases in revenues and operating cash flows followed the increased performance and Geos.
And represents a 35% increase quarter over quarter.
And on an annualized basis represents operating cash flows of approximately $200 million.
Net earnings of <unk> 10 per <unk>.
<unk> common share.
Were essentially flat compared to the prior quarter due to noncash items.
Adjusted earnings of <unk> 18 per basic common share showed an improvement over the prior quarter or <unk> 14 per share.
The company now has 23 producing assets.
Up two from the prior quarter, including the first reporting of Geos from the CSA silver stream in Q2.
Which has an effective date of February one 2023.
Paul Martin: Our GEOs earned come predominantly from Canada and were derived 90% from precious metals, 62% from gold, and 28% from silver. I'll make some comments on some of the specific mine performances before speaking about our flagship operation. Several operations have been impacted from the numerous forest fires across Northern Canada and where we likely will see some downside impact in Q3. At Victoria's Eagle Mine, it continues to outperform expectations in 2023, a key bright spot for Osisko. A strong start to the year in Q1 2023, with Victoria having confirmed the viability of year-round stacking and heap leaching, followed by record production in Q2. However, as a result of the local forest fires and recent evacuation of the site, Victoria feels it prudent to guide the lower end of the 2023 annual guidance of 160,000 to 180,000 ounces.
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Those earnings come predominantly from Canada.
And were derived 90% from precious metals, 62% from gold and 28% from silver.
I'll make some comments on some of the specific mine performances before speaking about our flagship operation.
Several operations have been impacted from the numerous forest fires across northern Canada.
And where are we likely will see some downside impact in the third quarter.
At Victoria's Eagle mine.
It continues to outperform expectations in 2023 key bright spot for Cisco.
Strong start to the year in Q1, 2023, with Victoria, having confirmed the viability of year round stacking and heap leaching followed by record production in the second quarter.
However, as a result of the local forest fires and recent evacuation of the site Victoria feels it prudent to guide to the lower end of the 2023 annual guidance of 160 to 180000 ounces.
Paul Martin: The strong performance at Eagle has helped offset some of the modest disappointment at Capstone's Mantos Blancos operation, where milling rates continue to lag phase 1 expansion design levels. We took a conservative approach with Mantos on our guidance and will continue to monitor the performance in H2 of the year. Capstone noted with their recent quarterly results that design rates are expected to be achieved in Q4. At the Éléonore Mine, it was impacted in Q2, where we had a temporary suspension for a couple of weeks due to the proximity of the forest fires, and which we expect will impact the mine's Q3 production, and obviously our share of GEO deliveries. Although Newmont has not changed the annual production guidance for the asset.
The strong performance at Igo has.
Has helped offset some of the modest disappointment at Capstone <unk> Blancos operation, we're milling rates continue to lag phase one expansion design levels.
We took a conservative approach with Manto us on our guidance and we will continue to monitor the performance in the second half of the year.
Capstone noted with their recent quarterly results, but design rates are expected to be achieved in the fourth quarter.
At Eleonore mine it wasn't impacted in the second quarter.
Where we had a temporary suspension for a couple of weeks due to the proximity of the forest fires and.
And which we expect will impact the mind's Q3 production.
And obviously our share of Geo deliveries.
Newmont has not changed the annual production guidance for the asset.
Paul Martin: Given Newmont's merger with Newcrest, we'll continue to actively watch where Éléonore Mine fits into the combined entities hierarchy of mines. At Renard, it was also affected in Q2 due to forest fires, and with a loss of approximately a week's worth of production. We'd like to commend all of our operators, including Stornoway, for their actions to ensure the safety of the workforce and in the successful restarting of operations. Further at Renard, we expect Q3 sales to be impacted from this interruption, as well as from a continued softness in the diamond price, which has carried over from the H1 of the year. Now over to our flagship asset, the Malartic Complex, which had once again a solid and predictable quarter and remains the company's most significant contributor to GEOs earned.
Given the two months merger with new Chris.
We continue to actively watch where eleonore fits into the combined entities hierarchy of mines.
At Renard. It was also affected in the second quarter due to forest fires.
And with a loss of approximately a week's worth of production.
We'd like to commend all of our operators, including Stornoway further actions during this to ensure the safety of the workforce and in the successful restarting of operations.
Further at Renard, we expect Q3 sales to be impacted from this interruption as well as from a continued soft softness in the diamond price, which is carried over from the first half of the year.
Now over to our flagship.
The melodic complex, which had once again, a solid and predictable quarter and remains the company's most significant significant contributor to GFS earned.
Paul Martin: This asset, since inception, has contributed over half a billion CAD in cash flow to the company. As many on this call know, Agnico Eagle recently provided an update study covering the underground extension of the operation through to 2042 at a steady state of 500,000 to 600,000 ounces per year. The vast majority of this extension falls on our 5% royalty claim block. The study incorporated only 57% of the existing resources, and the extension significantly increases Malartic's value as a shared asset to Osisko. The company has maintained its guidance for 2023 and will provide further update in its Q3 release. As you will have seen from the press release, the company has declared its Q3 dividend at CAD 0.06 per common share. On the transaction front, I'll speak to the two newest transactions and then come back to CSA.
This asset since since inception has contributed over half a billion dollars in cash flow to the company.
And as many on this call know Agnico Eagle recently provided an update study covering the underground extension of the operation through to 2042 at a steady state of 500 to 600000 ounces per year.
The vast majority of this extension falls on our 5% royalty claim block.
The study incorporated only 57% of the existing resources and the extension significantly increases <unk> value as a shared asset to Cisco.
The company has maintained this guidance for 2023, and we will provide further update as Q3 release.
And as you will have seen from the press release. The company has declared its third quarter dividend at <unk> <unk> per common share.
On the transaction front I'll speak to the two newest transactions and then come back to CSA.
Paul Martin: At Gibraltar, with the acquisition by Taseko of Sojitz's 12.5% interest, we were able to amend the existing silver stream and increase it by 12.5% to 87.5% for just over CAD 10 million on an asset which is well-known to us. Further to this, the step-down delivery threshold was extended, resulting in an additional 1.5 million ounces of silver to Osisko towards the tail end of the mine. Just after the quarter end, we also closed the Hot Chili 1% copper and 3% gold NSR royalties on the very exciting Costa Fuego deposit in Chile. This asset ranks highly amongst the best undeveloped copper projects in the world, and when combining the royalty funding with the release of a positive PEA, generated a significant positive move in Hot Chili's share price. Let's go to the more significant CSA transaction.
At Gibraltar with the acquisition by <unk> of so Jet's 12, 5% interest we were able to amend the existing silver stream and increase it by 12, 5% to 87, 5%.
For just over $10 million.
On an asset which is well known to us.
To this the step down step down delivery threshold was extended resulting in an additional one 5 million ounces of silver to our Cisco towards the tail end of the mine.
And just after the quarter end, we also closed the hot chilli, 1% copper and 3% gold MSR royalties.
On the very exciting Costa for Weibo deposit in Chile.
This asset ranked highly in months.
The best undeveloped copper projects in the world and when combining the royalties funding with the release of a positive PPA generated a significant positive movement hot chili share price.
Let's go to the.
More significant CSI transaction.
Paul Martin: On 16 June, through the company's Bermudian subsidiary, the company announced the closing of the CSA silver and copper stream following Metals Acquisition Limited's acquisition of the Australian-based CSA mine from Glencore. For full details of the acquisition, please see our press release dated 16 June on the website. It includes a silver stream representing 100% of the payable metal and a copper royalty, which ranges between 3% and 4.875% until 33,000 metric tons are produced, and then 2.25% thereafter. The copper stream will become effective in mid-2024 on the anniversary of the 15 June 2023 transaction closing. Combined, these two royalties were purchased for $150 million, and Osisko further invested $40 million in equity into the company. The purchase price was paid with $60 million in cash and drew $130 million from our revolving credit facility.
On June 16th through the company's Bermuda subsidiary, the company announced the closing of the CSA silver and copper stream.
Following metals acquisition Limited's acquisition of the Australian based CSA mine from Glencore.
For full details of the acquisition. Please see our press release date.
Data at June 16th on the website.
It includes a silver stream, representing a 100% of the payable metal and copper royalty, which ranges between three and four 875% until 33000 metric tons are produced.
And then two 2% to 5% thereafter.
The copper stream will become effective in mid 2024 on the anniversary of the June 15 to 23 2023 transaction closing.
Combined these two royalties.
Were purchased for $150 million U S and Cisco further invested use $40 million in the equity into the company.
The purchase price was paid was $60 million in cash and.
And drew U S $130 million from our revolving credit facility.
Paul Martin: The company maintains a ROFR for up to seven years on any project the company advances, provided Osisko Bermuda holds 5% of the issued and outstanding common shares of the company. We're following the new operator's impact on this operation and believe we will not be disappointed with the team led by Mick McMullen in their efforts on improving the operation's overall performance beyond that achieved by the prior owners, Glencore. On the balance sheet, I will reconfirm that these are all reported in CAD. After factoring in the CSA transaction, we have net debt of CAD 250 million, placing us in a strong position relative to our peers, which is well below $200 million in U.S. dollar terms. The revolver has CAD 230 million in available capacity before considering the uncommitted revolver accordion, and the covenant performance is exceptionally strong.
The company maintains a roper for up to seven years on any project the company advances.
<unk> provided a Cisco Bermuda hold 5% of the issued and outstanding common shares of the company.
We're following the new.
<unk> impact on this operation and believe we will not be disappointed with the team led by Mike Mcmillan in their efforts on improving the operations overall performance beyond that achieved by the prior owners Glencore.
On the balance sheet I will reconfirm that these are all reported in Canadian dollars.
And after factoring in the CSA transaction, we have net debt of $250 million.
Placing us in a strong position relative to our peers.
And in.
Which is well below $200 million in us dollar terms.
The revolver has $230 million in available capacity before considering the uncommitted revolver accordion and the covenant performance is exceptionally strong.
Paul Martin: On our investments held on the balance sheet, we will continue to balance the need for incremental funding against our perception of what fair value is for these various positions. As previously noted, Osisko now has 23 performing assets and a significant portion, as noted by the hatched line, are either in expansion, extension, or ramp-up, helping to underpin our near-term growth profile. Osisko continues to distinguish itself from its peers due to the depth of its exploration and development assets, which exceeds 180 properties and which is heavily weighted to being located in North America. Please be advised that we're planning to organize an investor day, likely in October, where we'll have our corporate development and technical teams present to dig more in depth on the exploration and development portfolio, and if we can arrange it, hear from some of our key counterparties.
On our investments held on the balance sheet, we will continue to balance the need for incremental funding against our perception of what fair value is for these various positions.
As previously noted Cisco now has 23 performing assets and a significant portion as noted by the hatched lines are either an expansion extension or ramp up helping to underpin our near term growth profile.
The Cisco continues to distinguish itself from its peers due to the depth of its exploration and development assets, which exceeds a 180 properties and which is heavily weighted to being located in North America.
Please be advised that we're planning to organize an investor day likely in October where we'll have our corporate development and technical teams present to take more in depth on the exploration and development portfolio and.
And if we can arrange it here from some of our key counterparties.
Paul Martin: Let's talk about one of those now. Patriot Battery Metals released its maiden inferred resource at CV5, totaling 140 million tons, grading 1.42% lithium oxide, immediately making it the largest lithium resource in the Americas. Concurrently, they announced a strategic investment into the company for CAD 109 million for major industry player and hard rock lithium connoisseur Albemarle. Recall that Osisko holds a 2% NSR on lithium, covering approximately 90% of the CV5 resource, as well as 1.5% to 3.5% royalty on precious metals. Worth highlighting is the Patriot analyst consensus values Corvette or the CV5 resource anywhere from between $1.5 to $2.5 billion, depending on the future lithium price assumptions. This will be an exciting asset to watch as a future supplier of this key material in support of the world's push towards electrification.
But let's talk about one of those now.
The better Patriot battery metals released its maiden maiden inferred resource at <unk> five.
Totaling 140 million tonnes grading, 142% lithium oxide immediately making it the largest lithium resource in the Americas.
Concurrently they announced a strategic investment into the company for Canadian and $109 million.
For a major industry player and hard rock with lithium corner store Alba Marley.
Recall that our Cisco holds of 2% MSR on lithium covering approximately 90% of the CV side resource.
Well as $1 five to three 5% royalty on precious metals.
Worth highlighting is the Patriot analysts' consensus values.
Corvette or the CV fiber source anywhere from between U S. One five to $2 5 billion, depending on the future lithium price assumptions.
This will be an exciting asset to watch as a future supplier of this key material in support of the worlds push towards electrification.
Paul Martin: In closing, Osisko remains extremely well positioned to continue its growth path and targeting a 35% increase in GEOs earned as shown in its five-year outlook to 2027. Further to this, positive catalysts continue to unfold across the asset base, as indicated in our optionality arrow to the right, that will further add to OR's growth towards the end of this decade and beyond. A couple of examples include Kinterra's recent CAD 30 million investment into Highland Copper's White Pine North project, with the new JV now looking to advance the project through to feasibility. With the funds received, allowing Highland to also push forward at Copperwood. The upcoming final feasibility study in the FID from South32 at Hermosa, expected in H2 of this year.
In closing the Cisco remains extremely well positioned.
To continue its growth path and targeting a 35% increase in Geos earned as shown in its five year outlook to 2027.
Further to this.
Positive catalysts continue to unfold across the asset base as indicated in our Optionality arrow to the right.
<unk> will further add to our growth towards the end of this decade and beyond.
A couple of examples include <unk> recent $30 million investment in the Highland copper is white pine North project.
With the new JV now looking to advance the project through to feasibility.
And with the funds received allowing Highland to also push forward of copper with.
And the upcoming final feasibility study.
<unk>.
So 32 at Hermosa expected in the second half of this year.
Paul Martin: On that asset, while much of the focus has been on the company's recent write-down due to a higher than previously expected CapEx number, Osisko's business model insulates itself from this issue, and we have no doubt that our partner will continue to push forward with this material project. Finally, when factoring all this in, while also considering Osisko's current relative valuation, as touched upon in the final slide in this deck, which is in the appendix, it is my opinion that Osisko remains the go-to royalty company in the mid-tier royalty space. Operator, we'll now open up the line for questions, as well as questions posted on the webcast. Please note, if we don't get to all of them before the end of this call, we will respond shortly afterwards.
And on that asset while much of the focus has been on the company's recent write down due to a higher than previously expected capex number.
Cisco's business model Insulates itself from this issue and we have no doubt that our partner will continue to push forward with this material project.
Finally, and when factoring all this in while also considering of Cisco's current relative valuation as touched upon on the final slide in this stacks in the stack, which is in the appendix.
My opinion at Cisco remains the go to royalty company in the mid tier royalty space.
Operator, we will now open up the line for questions.
As well as questions posted on the webcast.
Please note if we don't get to all of them before the end of this call. We will we will respond shortly afterwards.
Operator: Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you'd like to ask a question, please press star followed by the number 1 on your telephone keypad. If your question has been answered and you would like to withdraw from the queue, please press star followed by the number 2. If you're using a speakerphone, please lift your handset before pressing any keys. One moment please while we compile the roster. The first question comes from Ralph Profiti with Eight Capital. Please go ahead.
Thank you, Sir ladies and gentlemen, we will now begin the question and answer session. If you'd like to ask a question. Please press star followed by the number one on your telephone keypad.
Question is would be announced that he would like to withdraw from the queue. Please press star followed by the number two and if you are using a speaker phone. Please lift your handset before pressing any.
Yes.
One moment, please all the compiled the roster.
First question comes from Ralph property with eight capital. Please go ahead.
Ralph Profiti: Thanks, operator. Good morning, Paul. I wanted to ask a question starting off with CSA and sort of the methodology on how you were thinking about attaching a valuation to the stream, and the equity position as well, sort of the total investment context. In this in your eyes, is this really just sort of an optimization story on the part of the new operator? Or are you thinking there's optionality for step changes in throughput, production, or exploration?
Thanks, operator, and good morning, Paula I wanted to ask a question starting off with CSA and sort of the methodology on how you were thinking about attaching a valuation to the stream and the equity position as well sort of the total investment context then.
In this in your eyes is this really just sort of an optimization story on the part of the new operator or are you thinking there's optionality for step changes in throughput production or exploration.
Paul Martin: Thanks, Ralph, and good to hear from you. I think what we see is that that was probably an underappreciated asset in the Glencore portfolio. Knowing what Mick has done in the past, we see significant improvement to come through on it. With the addition of our backstop copper royalty, this is one we are very excited about.
Thanks Ralph.
Good to hear from you.
What we see is that that was probably an under under appreciated asset in the glencore portfolio.
And.
Knowing what <unk> has done in the past we see.
Significant improvement to come through on it.
And with the addition of our backstop copper royalty.
This is one we're very excited about.
Ralph Profiti: Got you. Thanks for that context. Just a second question on liquidity. Currently sitting in terms of availability of CAD 500 million if you include the accordion. Can you put that in the context of the market portfolio transaction opportunities out there in the pipeline that is potentially sizes of CAD 50 to 100 million or some transactions a little bit higher than that? I'm just trying to get a sense of liquidity versus opportunities.
Got you thanks for that context, and just a.
Second question on liquidity currently sitting in terms of availability of $500 million. If you include the accordion can you put that in the context of sort of the market portfolio of transaction opportunities out there in the pipeline that is potentially.
Sort of sizes of 50 to 100 million or some transactions a little bit higher than that I'm, just trying to get a sense of liquidity versus opportunities.
Paul Martin: Yeah, that's a fair question. I think even without the accordion, we have a strong liquidity with respect to what we're seeing in the marketplace right now, is how I would answer that.
Yes, that's a fair question.
Thank even without the accordion, we're sitting in.
Strong liquidity with respect to what we're seeing in the marketplace right now is how I would answer that.
Ralph Profiti: Okay, helpful. Thanks, Paul. Thank you.
Okay helpful. Thanks, Paul Thank you.
Operator: Thank you. Your next question comes from John Tumazos with John Tumazos Very Independent Research. Please go ahead.
Thank you. Your next question comes from John Tumazos with General Medicines very independent research. Please go ahead.
John Tumazos: Good morning. Thank you for taking my questions. I have a detailed question first. I apologize if I didn't read everything. I got to note five and 10. What was the CAD 19.9 million credit loss? Which loan to which company? Could you just say what the CAD 6.7 million impairment was related to?
Good morning, Thank you for that.
Question detailed question first.
I apologize if I didn't read everything I got some notes five in time.
What was the $19 9 million dollar credit loss.
Loan to which company.
And could you just.
The $6 7 million of impairment was related to.
Paul Martin: Yeah, sure, John, those are both very fair questions. The first one, we had three items, I would say, in the accounts for the quarter. One being a gain on the Osisko Mining joint venture transaction. We did reflect a gain of almost CAD 20 million in respect of that. That's a non-cash item, obviously. We did have a reduction in our accounts receivable or loan receivable from Renard. This was a balance that was created from the past restructuring at the operation where we deferred our GEOs, and that those amounts were set up as a debt payable. Given the decrease in the diamond prices, we felt it prudent to trim that number, which is essentially what we have done in the quarter. Obviously, if diamond prices return, that full value returns to us.
Yeah sure John those are both very fair question. So the first one.
Yes.
We have three items that I would say in the in the accounts for the quarter.
One being a gain on the Cisco mining joint venture transaction. So we did.
Reflect a gain of almost $20 million in respect of that.
A noncash item obviously.
We did have a.
Reduction in our accounts receivable our loan receivable from Renard.
This was a balance that was created from the past restructuring at the operation, where we deferred our geos.
And that those amounts were setup as a debt payable given the decrease in the diamond prices, we felt it prudent to trim that number.
Which is essentially what we've done in the quarter, obviously, if diamond prices return that full value returns to us.
Paul Martin: The asset impairment was a very small project where the operator has come up dry and has essentially walked from the project. We've written that down to zero.
And then the asset impairment was a very small project, where the operator, that's come up dry and has essentially walked from the projects that we've written that down to zero what was the name of the project.
John Tumazos: What was the name of the project?
Paul Martin: It was called Hidden Valley.
It was called hidden Valley.
John Tumazos: In PNG?
In PNG.
Paul Martin: Yes.
Yes.
John Tumazos: Thank you. Second question. 15%, 20% of the asset base are the stock holdings of affiliated companies. ODV, Osisko Mining, et cetera. Those don't generate the current return that the royalty streaming assets do, and I would imagine over time, you'd rather apply that capital to generate the income. Is it a reasonable expectation that circa 2026, when the projects of ODV and Osisko Mining are in production, that would be a target time to monetize those stock holdings?
Second question.
15, 20%, yes.
For the stock holdings of affiliated companies.
RBC, Cisco mining et cetera.
That does not generate current return royalty screening assets.
I would imagine over time.
Rather apply that capital.
To generate the income.
Is that a reasonable expectation.
That circa 2026.
When the projects that you see in our system.
Mining production.
The.
Would be a target time too.
Monetize the stock holdings.
Okay.
Paul Martin: I think I did answer that in my presentation, saying that we continue to monitor those investments all the time and vis-a-vis what our capital needs are. Yes, we will look to make a decision at the appropriate time as to whether we would decrease those positions or not. As you well know, Osisko Development, as an example, is a company that requires additional funding to realize the value of those underlying assets. I think at the moment, we are comfortable to sit and be diluted in our position whilst the funding is used to increase the value of those assets.
I think.
I did answer that in my in my presentation.
Presentation, saying that we continue to monitor as those investments all the time.
And vis vis what our capital needs are and yes, we will we will look to make the decision at the appropriate time as to whether we would decrease those positions are not as you well know.
Cisco development as an example.
Uh huh.
As a company that requires additional funding to realize the value the value of those underlying assets and I think at the moment, we are comfortable to sit and be diluted and our position oils. So the funding is used to increase the value of those assets.
John Tumazos: Thank you.
Thank you.
Operator: Thank you. Ladies and gentlemen, as a final reminder, if you have any questions, please press star one.
Thank you.
Ladies and gentlemen, as a final reminder, if you have any questions. Please press star one.
Paul Martin: Operator, it looks like we might be done.
Operator, it looks like we might be done.
Operator: Over to you, Mr. Martin, for closing remarks.
Over to you Mr. Martin for closing remarks.
Paul Martin: Okay. Thanks everyone for taking the time, and as you know, we're available for follow-up questions as and when required. Have a great day. Bye-bye.
Okay. Thanks, everyone for taking the time and as you know we're available for follow up questions as and when required and have a great day bye bye.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.
Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.
Okay.
