Q2 2023 Torex Gold Resources Inc Earnings Call
Thank you for standing by this is the conference operator, welcome to the Tor Exco Resources, Inc. Second quarter 2023 results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation there.
There will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you may signal, an operator by pressing star and Seattle.
I would now like to turn the conference over to Dan Rowlands Senior Vice President Corporate development and Investor Relations. Please go ahead Mr. Roland.
Thank you operator, and good morning, everyone.
On behalf of the <unk> team welcome to our Q2 2023 conference call.
Before we begin I wish to inform listeners that the presentation accompanying today's conference call will be Ken found can be found under the investors section of our website at www dot towards gold Dot com.
I'd also like to note that certain statements to be made today by the management team may contain forward looking information.
As such please refer to the detailed cautionary notes on page two of today's presentation as.
Well that was included in the Q2 2023 M D N a.
On the call today, we have Joe <unk>, President and CEO .
Andrew Snowden CFO .
As well as Dave stepping noodle executive Vice President technical services and capital projects.
Following the presentation Jodi, Andrew and Dave will be available for the question and answer period.
This conference call is being webcast and will be available for replay on our website.
Last night's press release, and the accompanying financial statements and MD&A are posted on our website at happy filed on SEDAR.
Also note that all amounts mentioned in this call are U S dollars unless otherwise stated I'll now turn the call over to Jodi.
Thank you Dan and good morning to all on the line welcome to the Toric Scold Q2, 2023 results call.
Open my remarks by saying that we're at the halfway mark of the year, and we're where we want it to be.
Opening highlights include first production is tracking nicely to the midpoint of the guided range.
In development of media Luna is on schedule and on budget with 18 months left to go in the project build and third exploration drilling continues to demonstrate the potential for reserve and resource growth on both sides of the river.
In terms of the agenda for the call. It will be the same as usual I'll provide a brief reminder of our strategic pillars that continue to frame our execution plan.
I'll step you through the key business and operational highlights specific to the second quarter, then over to Andrew who will provide a review of the financial results then Dave will provide a progress update on media Luna I'll, then make some closing remarks and hand the call over to the operator for the question and answer period.
Starting here on slide four a quick review of our strategic pillars that set up the five key areas of focus as we make our way through 2023.
On optimize and extend E. L. G. The recently released drill results from the E. L. D underground highlight the potential to replace reserves again in 2023 well also growing resources across multiple deposits, which bodes well for the future reserve growth and our plans to fill the mill post 'twenty.
27.
In addition to future considerations that we look at today's performance, we've been successful in increasing mining rates and the E. L. G underground setting yet another quarterly production record with Q2 performance.
On Derisking advanced media Luna the project is tracking to schedule and budget, we passed a four and a half kilometer mark in the Whitehouse tunnel and executed purchase orders for the entirety of the underground mining fleets.
Surely we recently awarded the contract for the underground construction and vertical development scopes.
Contractor is now mobilizing to site.
And grow reserves and resources, our 2023 exploration and drilling program is tracking nicely to plan and we expect to release. The first set of infill and step out drilling results from E. P. O in the coming weeks, we're excited about the potential to develop yet another mining friendly D. P O, which will also support our plans to fill the mill with higher grade feed beyond two.
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And prudent capital management, we remain in a solid position to fund the development of media Luna as at the end of the quarter, we had $606 million left to spend on the project.
Available liquidity of $527 million.
And lastly on ESG excellence in May we published our eighth annual responsible gold mining report outlining the excellent work accomplished in 2022 on matters of safety environment community and climate.
Turning now to slide five we produced over 107000 ounces.
In the quarter, placing us at 230000 ounces through the first half of the year.
So we're in a solid position to achieve full year production guidance it up and as we do that it will be the fifth year running.
The lower production quarter over quarter was expected and reflects where we are in the sequencing of our pits with the depletion of the won has pit in may and the ongoing focus on waste stripping at Alamo pitch. We were prepared we were processing a much greater proportion of lower grade stockpile material in the quarter.
Focus on waste stripping will continue through much of Q3 before or production ramps back up in Q4.
On financials, the impact of the stronger Mexican peso and focus on waste stripping is reflected in total and all in sustaining cash costs, which were above the upper end of the guided range for the quarter.
And the team is working hard to bring that into the guidance range for full year.
Cash flow from operations was $90 million. This includes $17 million of tax payments and the annual PTU payments of $30 million P. T you being the Mexican legislated employee bonus.
With spending of $77 million on the media Luna project during the quarter, we closed Q2 with $285 million of cash on hand, and available liquidity of $527 million.
Note here on liquidity, our liquidity position will be enhanced over the coming days says we're in the final stages of amending our credit facilities, which will extend the maturity date of our facilities by one year to 2026 and increase the total borrowing capacity by an additional $50 million.
Given that that was always part of our plan as we did not want to be overly focused on paying down debt in the same year, we were ramping up production from video Luna overall, the improved financial flexibility reflects I think the strength and confidence of our lenders in our underlying business.
Yeah.
Turning now to some operational highlights on slide six you can see there in the top left that shows the quarterly production I've already discussed the dip there in Q2 should be read in conjunction with the graph on the bottom left on grade you can see that process grade was down as a result of processing a greater portion of stockpiled material.
Given the sequencing of the open pits.
The top right and I don't want this to be overshadowed by the great story the processing plant team set a new quarterly billing records of 13293 tons per day, driven by ongoing process improvement and maintenance practices and finally on the bottom right. You can see we also delivered another record quarter on the underground mining.
Friends hitting more than 1900 tonnes per day and closing in on our targeted rate of 2000 tonnes per day by the end of 'twenty 'twenty four.
Moving to slide seven the overview of our annual guidance, we're well positioned for another successful year on the production front, we're tracking towards the midpoint of the guided range.
With quarterly production in the second half expected to mirror that of the first.
Total cash costs and all in sustaining costs are tracking towards the upper end of the guided ranges given the focused on waste stripping and a stronger Mexican peso like production.
We expect quarterly T C C N a sick to mirror quarterly costs in each one.
On the capital front sustaining capital expenditures are on track for the full year with capitalized stripping expected to remain elevated through much of choose three before dropping off in Q4, as we move out of a period of higher stripping at La <unk>.
And finally, you can see here, how we're tracking on media Luna Capex with $144 million spent through the first time.
Well spending on media Luna is expected to increase at age to the lower level of spending and each one has its tracking towards the lower end of the guided range. The lower spending is not expected to impact overall timeline and any capital not incurred in 2023 will be incurred in 'twenty 'twenty four.
Turning now to slide eight we're excited about the success, we're having with the ongoing drilling program at El Che underground, we see potential here to extend the life of this mine well beyond the current reserve life of 2026.
And Ali most who are deep in the top right in the section view on a slide drilling returned multiple high grade intercepts, including 88.9 grams per ton gold equivalent over 14, and a half meters and 11.2 grams per ton gold equivalent over 29 meters. So theyre pretty exciting. These two notable holes.
In addition to what else we're seeing here validates the high grade nature of the theater is in this area of deposit, but also demonstrates the potential for ongoing resource growth at depth at <unk>.
Some still sell drilling encountered mineralization down to the 400 meter elevation, which is 125 meters below the lowest resources that sub sill, and some 275 meters below E. L D.
In addition follow up drilling 100 meters to the west of Ely, Most who are deep continues to highlight the potential for another new zone of underground mineralization.
Clearly plenty of upside here and we're very excited about the long term prospects of E. L. G underground.
Next up on the exploration front will be a release detailing initial results from the 2023 program at E. P. O. That's on the south side of the river and it's focused on upgrading additional inferred resources to indicated category and growing the overall size of the resource envelope.
We expect to release these results in the coming weeks.
Turning now to slide nine for a quick point on ESG in May we published our eighth annual responsible gold mining report, which details the great work our team does that site on community relations Environmental protection and most importantly safety the safety of our employees and our rapidly expecting expanding contractor base with now.
Now over 200 people working on the media Luna project.
Our performance on safety is reflected on the bottom left of this slide our lost time injury frequency at quarter end remains at an industry leading 0.58.
I'll now turn the call over to Andrew to speak to the quarterly financial performance.
So.
Thank you Jody and good morning, everyone.
Q2 was another financial quarter delivered to plan works.
Lower head grade due to a greater proportion of a stockpiled material processed.
In addition, the strength in the Mexican peso are highlighted in our Q1 earnings call did extend through Q2.
So we are continuing to see this put pressure on cost.
Today, the peso has average day rates.
One two to one U S dollar and that compares to the right with what you said, which was a 22 warm.
Yesterday for each of the six months to June .
This is Hudson in parts of approximately $10 million on operating costs were approximately $45 an ounce.
As a reminder, on an annual basis, each one peso burden sharing right, we'll have about a $10 million impact on operating costs.
Well that's shown here on slide 11, these operational and foreign exchange shrunk just combined have resulted in Q2 potential cash cost.
Adjusted EBITDA of 106 million.
Given the continued focus on waste stripping through Q3, we expect costs on EBITDA in Q3 to be comparable to those reported in Q2 before improving in Q2.
Paul.
With the potential ongoing strength of the Mexican peso.
This will continue to put some pressure on cultural puts us at the upper end of the guided range for both both total cash costs and all in sustaining costs for the full year.
Finally on this slide just commentary now on free cash flow, which is shown in the bottom right quadrant total charge, we reported a $37 billion of free cash flow deficit during the quarter.
This reflects the on your Pizza you were employee profit sharing payment, which was $13 million paid in may of each year.
And also the free cash flow is impacted by the increased spending on capital.
Specifically the spending on media Luna increased by $11 million in the quarter to 77 million with further increased its forecast in Q3 and Q4.
Based on the spending to date I expect this will bring us to the lower end of the guided media Luna capital range for 2023.
Turning now to slide 12, you can see a summary of our unit cost performance.
Despite the ongoing pressure from a stronger Mexican peso mining costs are tracking well and generally in line with the cost to achieve 2022.
Let me open pits improved productivity has helped to offset peso pressures with unit costs tracking in line with last year.
Whereas in the underground cost pressures have been more than offset by economies of scale given the increased mining rates achieved yeah Tonight.
But the processing plants have increased costs relative to 2020 to reflect the higher consumable prices. We flagged when we released our full year guidance at the beginning of the year as well as a stronger Mexican peso.
While the stronger peso is putting upward pressure on costs. We are continuing to look for opportunities to reduce costs and this is something we've demonstrated our ability to do work with our partners.
Turning now to slide 13, you can see here the $37 million in negative free cash flow, we saw in the quarter that led to our true virtue of Cashcall, Linda Richardson to 285 million.
Outside of our operating EBITA, there's three key drivers behind this change in cash in the quarter, Firstly and most significantly would be the capital spending.
We invested $125 million in the quarter, which included $77 million of media Luna, which is up from the $66 million in Q1.
So can we repay the annual P T or employee profit sharing.
I mentioned was $30 million during the quarter amounts included at least on this chart within the changes in working capital.
And finally quarterly tax payments was $17 million during the quarter, which is relatively in line with the $6 million to $7 million a month of tax installments or anticipated for the full year 2023.
Although the high tax on PTU quarters for 2023 are now behind US we do expect quarterly free cash flow to continue to be negative for the balance of the year and into 2020 for media Luna capital continues to increase.
Uh huh.
I'm turning now to slide 14, you can see here. Despite the increased capital spending in Q2, our balance sheet remains very strong.
And positions us well to fully fund.
We closed out the quarter with $285 million in cash and a further $242 million of available capacity on our credit facility.
And so a total of 527 billion in available liquidity.
In addition to this available liquidity, we expect to close an amended credit agreement with our banking syndicate in the next few days.
Which would extend the maturity of our revolving and term loan facilities by year 2026, and also increase the total capacity of the revolving facility by $50 million.
Yeah.
In line with the extension of drawdown Daytona term facility will also be extended to.
So the end of 2024.
On a pro forma basis, we assume this would close that you thought you were sort of plateauing at June 30, with available liquidity of 577 million.
But I think this additional credit capacity really reflects the strength of the underlying business.
So that provides us with additional financial flexibility to support our strategic priorities.
And this is really demonstrates it on the next slide here on slide 15.
Well you can see how this liquidity well supports the remaining for capital expenditures on media Luna.
And our ability to deliver on our broader strategy by investing meaningfully in exploration drilling.
Maintaining a strong balance sheet during the build period.
Yeah.
Including the additional $50 million of borrowing capacity on the revolving facility. We now estimate only 129 million of free cash flow needs to be generated from EOG over the next 18 months to fund our strategic priorities, which includes the $606 million remaining.
And on maintaining $100 million of cash on the balance sheet.
This internal cash flow requirements at 129 million over the next 18 months compares with 220 million, we've actually generated from from LG on over the past 12 months and it supports our confidence in funding media Luna and San Juan.
Finally, just an update on hedging.
You can see summarized on slide 16.
Two on price of gold hedges for the remainder of 2023 and 2024 remains unchanged and continues to provide effective support for media Luna capital spend.
We don't have any current intent to increase the gross margin profile you see here on this on this slide further.
All of these gold hedges, we regenerated a modest realized loss of $600000 during the quarter, while the noncash gain of $15 million, you'll see recognized on our income statement reflects the weaker forward prices. We saw at the end of the quarter.
Yeah.
No final decisions being made that yet, but we parts of it and we plan to be opportunistic with.
Minimizing any further downside risk, while leaving the potential to benefit from weaker prices should the Mexican peso weakened relative to the U S dollar through the build period.
With that I'll now hand, the call over to Dave will provide an update on media Luna.
Thanks, Andrew Slide 18 shows the progress that media Luna. After the first 15 months of a 33 month build period. The main takeaway is the media Luna project is tracking to budget and the schedule with the first concentrate production is still anticipated in Q4 2024 and commercial production in early 2025 a.
At quarter end, the project was 35% complete across procurement engineering underground construction development and surface construction up from 24% at the start of the quarter with engineering and procurement rates picked up as we issued a number of scheduled critical purchase orders such as our battery electric support equipment with Mclane and battery.
Electric personal transport vehicles with rural Qian.
Underground construction in vertical development contracts were awarded to doing this with the various crews now mobilizing to site.
The award of the ball Mill Motors and variable frequency drives.
And additional electrical equipment, including surface pad mounted transformers and switch gear.
Underground development kept pace during the quarter with 18 active headings in media Luna lower that means spiral ramp which will connect to the wise tunnel was completed.
Development was prioritized.
At the sell side to complete the underground excavations for the origins and the ore passes to support mobilization of the underground construction contractor.
Delivery of the Qantas conveyor table segments commenced with the aim of installing the conveyor anchors and tables later this year.
On the north side of the bosses reverse civil works for the water treatment plant were completed as well as rough gauge grading for the 230 kilovolt substation extension of the main water management culbert below the area of the new flotation plant at copper concentrate storage facilities were significantly advance, allowing the Romanian mass civil works to begin <unk>.
Relocation of the power distribution and installation of new Berry power conduits around the flotation plant are expected to be completed early next quarter, allowing preparation for the start of the plant concrete foundations additional camp modules to host project staff were also installed.
During the quarter, we invested $77 million in the project, resulting in a remaining expenditure of $606 million over the next 18 months as.
As of quarter end, 45% of the upfront project expenditures have been committed including 31% incurred while the level of expense spending is expected to increase in H two given the lower spend rate through the first half of the year, we expect full expenditures to be towards the lower end of the guided range of $390 million to $440 million.
Okay.
Slide 19 provides an update of the schedule critical wires tunnel.
Just on the progress to date, we are on track for breakthrough otherwise tunnel in early Q1 2024, if not earlier at the end of July the main wireless tunnel advance more than 4700 meters, having delivered average daily advance rate of $6 nine meters per day since the start of the year.
So portal lower had advanced over 'twenty 100 meters with the main spiral ramp being completed our crews will now begin to progress from south to north and the Whys tunnel.
<unk> for development on the sell side has been given to the mass excavation is related to the ore and waste handling systems. This will ensure development remains well in advance of the requirement for underground construction contractor <unk>.
Given the rates we've experienced to date, we gradually recover lost time due to earlier delays related to challenging ground conditions in the south portal upper and lower.
Turning to slide 20, and some recent pictures of the project.
On the top left you can see the earthworks related to the sedimentation in decant ponds located outside so portal lower worked on the ponds is accelerated with completion of the access road slope stabilization work.
The middle top picture, the new security building, while the top right you can see breakthrough of the West added then tunnel, which is located towards the top of the media Luna deposit.
At the bottom left you can see the civil works being carried out to expand the pad for the ml camp, which has significantly which was significantly completed in July and in the bottom right. You can see the copper flotation cells, arriving at site with that I'll now turn the call back over to Jodi. Thanks, Dave I, just by way of wrap commentary here, we're well on track to deliver another solid year in 'twenty.
23 production is tracking towards the midpoint of the guided range development of video Luna is tracking to budget and schedule and our exploration drilling continues to demonstrate the underlying resource potential of the entire morale those property.
With a strong balance sheet robust financial liquidity, we think we're well positioned to fund our strategic priorities.
When you combine that with the execution capability of this team that just continues to show itself quarter. After quarter, we anticipate that will lead to a further re rating at the company's share price and create value for everyone, who believes in us with that I'll pass the call over to the operator for the Q&A.
Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request.
Using a speakerphone please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
The first question comes from Wayne Lam with RBC. Please go ahead.
Yeah. Thanks, good morning, everyone.
Just a quick question that El G on the underground mining rates.
The prior commentary had mentioned exiting the year at 800 tonnes per day, implying that there was still a ramp up period through the year. Obviously, you guys have well outperformed that given.
Given the 19 100 tonnes per day achieved in the quarter just wanted to clarify if we should be modeling 1800, as an average for the full year or that bar should now be set to exiting the year at the higher 2000 tonne per day target that you guys had set for 2024.
Yeah. That's a good question Wayne and the reality is that the performance you see in EOG underground shows our ability to flex plans from an execution perspective as the business needs require so as the mining sequence shaped up in Q2 and in Q3 were really push.
<unk> hired in the underground so deep that 1800 tonnes per day. So you can expect our performance in Q3, that's either similar or greater to that you saw in Q2, and then it'll come off again in Q4, what we're doing we don't want to push so hard that we depleted reserves so quickly and so we're.
Kind of balance the push on the underground with what we're seeing in the pit to deliver on our overall commitments and so I think probably a safe modeling numbers in the 1900 ton per day range for the balance of this year recognizing that Q3 will be high and then we're looking to step that up one more step in.
And the performance next year.
<unk>.
Okay, great. Thanks, and good to see the result.
Maybe moving to the media Luna.
I think you guys had mentioned the 45% capex exposure to the Mexican peso I guess the peso has moved nearly three points from the 21 using the feasibility study just wondering if you might be able to provide an estimate for what kind of impact that's had on the on the project given that that's nearly 400 million exposure on the 875.
Estimate or what kind of sensitivity the capex has around that FX rate.
Sure, It's Andrew Andrew I'll take that question.
So the way I would think about that sensitivity why you would be you know for every kind of one peso movement in the exchange rates that would impact all project capital by about $50 million for the full project life through until the end of 2020 before so obviously there has been some of that would have been realized and be expenditure has been incurred to date.
I'd, probably say, maybe it was around $5 million about incremental pressure, that's being realized within our capital spend through the end of June but I'm looking forward for the rest of the project about $50 million sensitivity per peso I think is a reasonable assumption for park.
Okay, great. Thanks for that detail and then maybe just last one on the facility how does the refinancing tie in with the sustainability linked loan just wondering if those are mixed together or if they're two completely separate and then just given the lower spend anticipated this year.
The strong cash balance are you guys currently have.
And do you guys anticipate the first drawdown on the facility that kind of well into next year.
Yeah. So I'll take those questions were gaining weight and so on on the facility.
This this new facility feel this amended and Upsized facility and extended facility is exactly the same as the sustainability linked loan so they save the sustainability sustainability linked loan those both kpis, which are about five basis points the basis point impact we talked about last quarter all captured within this within this loan facility.
And so it's just not the same loan facility that's been extended so while total credit capacity.
Once this gets closed in the next few days will be about $300 million I referred to in my commentary.
In terms of kind of timing on draw down I don't expect that we'll be drawing down on the facility. This year.
With the extension of the facility. We now have until the end of next year to draw down on the term loan. That's helpful. Previously, we would've had to draw on it this year otherwise that availability would've fallen away. My current projections are that we don't need to draw on that until until at some point in the first half of next year.
Okay perfect. That's all for me thanks for taking my questions.
The next question comes from Don Demarco with National Bank Financial. Please go ahead.
Thank you operator, and good morning, everyone on the last call or talked about mining rates that I have a question about throughput.
Congratulations on this record throughput in the quarter can you comment on the drivers of this trend seems to be upward and and is it sustainable at the Q2 level or what what should we expect going forward.
Thanks for the questions on the driver of this is really two fold, one and opening up more headings and have plenty of places to work in active mining friends and to really working on utilization of the existing mining fleet sometime ago, we took a the scope on managing the mining.
The fleet from our underground mining contractor and are doing that ourselves two drivers. There one is the efficiency and the other is cost and so I think those two things taken together really contributed.
Two the increased mining rates.
Okay, great and great to see that and then I saw that you drew on stockpiles.
Gold grade was a little bit lower in the quarter.
Going forward would you anticipate.
Additional draws on stockpiles or was that something that was.
More of a Q2 item.
Yeah, I think you can expect to see them. They continue drawing stockpiles through Q3, and then as we complete the aggressive stripping phase and only model and get to or in the latter part of Q3 and into Q4, well pull off stockpiles and headset or at Alamo in Q.
Four so think about Q3 is looking a lot like Q2, and then Q4 is looking a lot like Q1.
Okay. Thank you and as a final question.
We know the tour X challenge the mining law reforms.
The unconstitutionality of it and as I understand there's no immediate or anticipated impact tour X, but can you give us an update on on this process, what the next steps and timing might be.
I'm sure happy to Oh give me just a brief overview as you can imagine there's lots of moving pieces here in quite a bit of detail towards did file something called an amparo to challenge the totality of the mining laws.
And in Mexico, the way it works if the view is that the laws are unconstitutional. There isn't a single challenge on the if they're done on Oh wonder by owner or a company by company basis. Many of our peers in Mexico has have also filed a similar challenge the way the process works is that the cases.
You indicated on the merits in terms of the interim relief and then final release, we've now been granted some instrument interim relief on the empower the state has appealed that so that continues to wind its way through the court system.
In the meantime, while this gets resolved it addressed through the judicial process. There's also political process ongoing whereas the opposition parties have challenge to the mining law.
So that's happening in a parallel path in the meantime tour X carries on business as usual to date, we haven't seen any impact to the operations and quite frankly with our relationships with our regulators and the maturity of our permitting and our operations, we don't expect to in the interim.
Okay, great well, thank you for that and and certainly good luck to that to T. Both you and all your peers.
That's all thank you.
Once again, if you have a question. Please press Star then one.
Question comes from Eric Windmill with Bank of Nova Scotia. Please go ahead.
Hi, good morning to everyone here. Thanks for taking my question just a quick question on the drilling here Oh Gee, just wondering if you could elaborate a bit on the plans going forward and obviously some pretty decent hits a what do you still see in terms of getting that into the mine plan or how much drilling to do there.
Yeah.
I'll take that one Eric we have a $6 million in the budget allocated to EOG underground this year and we're about halfway through that we like what we're seeing down deep we like what we're seeing to the west of Ely Mall sure. We haven't yet pulled together our mine plans for 'twenty 'twenty four we're in the midst of.
Doing that but early projections at least from my perspective, one of the things I like about what we're seeing is the elevated copper numbers over to the areas in L. A mall store in early March to our west and that should dovetail nicely with us having landed the copper flotation circuit is part of the menu only when a project so not only.
Are we seeing a increased life, there and increased availability of protect production what I see there is the potential for increased margin because we now have the potential we now have the processing capability to them to.
To make money off of what we're seeing down there so down deep over to the west we're pulling the mine plans together and are the margins look like they're going to be healthy.
Yeah.
Okay, Great no. That's super helpful. Thank you and just another quick one for me in terms of the in pit tailings deposition anything there or any.
Sort of milestones or next steps we're looking for.
Yeah, I'll take that one we have gone to some extra steps here to have a very detailed.
Thoroughly complete technical permit application. We're now in the final stages of pulling that together, we expect to file that application in August so imminently and just as a reminder to everyone on the call. We have plenty of time to discuss and land that in pit tailings deposition permit we have capacity.
D in our existing filter tailings storage facility out to 'twenty 'twenty six that's by design and to give ourselves plenty of time to land that permanent advanced of when we need it.
Okay fantastic. Thanks, so much for added color and congrats on a good quarter.
Thanks, Eric appreciate it.
Yeah.
As there appears to be no more questions. This concludes today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Yeah.
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