Q3 2023 Capstone Copper Corp Earnings Call
Good morning, ladies and gentlemen, and welcome to Capstone copper Q3, 2023 year results conference call.
At this time all lines are in listen only mode.
Following the presentation, we will conduct a question and answer session.
If at any time during this call you would acquire immediate assistance. Please press star zero for the operator.
This call is being recorded today on Friday third of November 2023.
I would now like to turn over the conference to Gerald Anna. Please go ahead.
Good morning, I'd like to welcome everyone to Capstone Koppers Q3, 2023 conference call.
Please note that the news release and regulatory filings announcing capstone copper is 2023 third quarter financial and operational results are available on our website and on SEDAR.
If you are logged into the webcast, we will advance the slides of today's presentation, which are also available.
Investors section of our website I'm.
Im joined today by our CEO, John Mckenzie, our President and COO Castro Maher, our Chief Financial Officer, Robin <unk>, and our senior Vice President risked ESG in General Counsel Wendy King.
Following our brief remarks, there will be an opportunity for questions. Please note that comments made on the call today will contain forward looking information within the meaning of applicable securities laws. This information by its nature is subject to risks and uncertainties and actual results may differ materially from the views expressed today.
<unk>.
For further information on the risks and uncertainties to pertaining.
Pertaining to our business. Please see capstone <unk>, most recent filings which are available on our website and on SEDAR.
And finally I'll just note that all amounts we will discuss today are in U S dollars unless otherwise specified now I will turn the call over to John Mckenzie.
Thanks, Gerald and good morning, everyone.
We're pleased to present, our third quarter 2023 results and achievements starting with slide five.
I was in Chile last week, and I was thrilled to see how close we know obviously, finishing construction at our months of added development projects.
This project is the culmination of many years of dedicated effort by our team from the permitting and engineering.
<unk> built and now we're approaching commissioning and first production.
MVP is transformational for capstone copper.
And will drive a step change improvements in our consolidated unit costs and a pathway to record operating cash flow generation.
During the quarter, we progressed the project in line with our schedule.
As at September 30, it we'd stockpiled approximately 5 million tons of sulfide ore, which positions us extremely well for the project ramp up.
We also commenced commissioning of the primary crusher.
And performed the first rotations of the Sag and ball Mills.
Meanwhile, at our tailing storage facility mass excavation was completed and both the stock award and the cutoff grades are nearing completion.
The project remains on time with construction completion to occur by year end.
After that we expect a six month commissioning and ramp up to the Mvp's nameplate capacity of 32000 tonnes of ore per day.
As we approach completion, we've updated our total capital cost estimate for the project to $870 million.
This reflects an increase of 5% from our initial estimates in March 2022 of $825 million and is largely driven by three factors.
Firstly inflationary impacts mostly related to higher diesel prices on pre stripping and tailings at wix corresponded to $20 million of the increase.
Secondly, we've made several projects improvements, including the purchase of additional retainers for best practice and concentrate transport and storage.
A water reservoir as well as additional camp and warehouse infrastructure.
These projects improvements contributed to another $20 million of the increase.
The balanced corresponds to additional forecast ramp up and commissioning costs.
We've provided a link with our news release and presentation materials.
Updates of the project from early October.
We're excited to be in the final stages of construction.
Turning to slide six.
We produced 43000 tonnes of copper at consolidated cone cash costs of $2.88 per pound in Q3.
Production and costs were impacted by eight days of unplanned downtime in the crushing circuits at our Pennsylvania operation in Arizona.
Along with our continued debottlenecking efforts at monstrous Blancos in Chile.
<unk> delivered another solid quarter as the mine has now ramped up to full production levels using the new cut and fill mining method.
Overall production slightly improved on Q2, and we believe and we believe we are well positioned heading into Q4.
Turning to slide seven.
We are reiterating our consolidated guidance.
Specifically, we continue to forecast second half production of 83 to 93000 tons of copper.
In terms of our cone cash costs. We've noted that they are trending towards the upper end of our second half guidance range of $2 55 to $2 75 per payable pound of copper produced.
We've also reiterated our consolidated capital expenditure guidance for 2023.
Although we have reclassified certain expenditures by operation as displayed on the slide.
I believe that we are well set up to have our strongest quarter yet in Q4.
Now I'll pass over to Robin for our financial results.
Thank you John.
We are now on slide eight in Q3, we recorded copper production of 43000 tons.
Copper sales of $38 7000 tons.
<unk> copper prices during the quarter averaged $3 79 per pound down 1% compared to 384 per pound in Q2 2023.
Our realized copper price of $3 77 per pound was largely in line with that let me average price.
As a result, we recognize revenues in the quarter up $322 million.
Realized copper prices, including the impact of copper hedges resulted in copper price of $3 69 per pound the difference between the <unk> and our realized price translates into approximately $6 million impact after tax or <unk> <unk> per share to our adjusted EPS.
We reported consolidated C. One cash cost of $2 88 per pound in Q3, which were impacted by lower production levels and additional maintenance expenses.
As we noted in the prior quarter, our higher <unk> cash cost continued to be heavily influenced by the production denominator, we expect to increase our production in Q4 to drive a notable decrease in our <unk> cash cost.
Adjusted EBITDA in Q3 of $62 8 million improved from Q2.
But was impacted by the unplanned downtime at Pinto Valley at our Debottlenecking efforts that mental cycles.
Adjusted net loss attributable to shareholders of $15 8 million excluded a one time deferred income tax expense of $24 $3 million related to the Chilean mining tax reform, which includes a modest increase in taxes effective January one 2024.
I believe that the uncertainty of the new taxation regime in Chile has been resolved.
Any impact to us is somewhat mitigated by our ongoing level of reinvestment in the country.
Moving on to slide nine.
On the left hand side, we summarize our available liquidity.
As at September 30 was approximately $425 million, including $130 million of cash and short term investments.
$295 million of Undrawn amounts under $700 million corporate revolving credit facility.
During Q3, we increased the size of our revolving credit facility by $100 million and we extended the maturity by one year to September 2027.
We ended Q3 with a consolidated net debt balance of $855 million and attributable net debt balance of $705 million.
Our balance sheet is in good shape.
With Matts operating expense at September 30 up $763 million the remaining balances of approximately 107.
We expect roughly $50 million to be incurred in Q4, 2023, and the remaining balance of $57 million in 2024.
The chart on the right hand side of the page illustrates our EBITDA sensitivity at various copper prices in the first two bars you can see that we expect significant near term EBITDA growth with Manto vary sulfides at full run rate production with MVP at full capacity, we expect to generate approximately 1 billion.
Of annual EBITDA, assuming a $4 copper price.
The EBITDA generation associated with mental Verde will enable us to focus on generating free cash flow to delever, our balance sheet and be below one times net leverage at copper prices between $3 75 and $4 per pound.
Which provides additional liquidity to advance our future growth pipeline in terms of incremental brownfield expansions or Santo Domingo, depending on market conditions.
Turning to slide 10, we outline our copper hedging program, which provides downside protection for our balance sheet through the MB DP construction and ramp up period.
In late July we Opportunistically entered into an additional 20000 tons of copper hedges for <unk> hundred 2024 at an average floor price of $3 74 per pound.
Overall, our hedge book, excluding QP hedges.
<unk> 54000 tons of copper over the next three quarters with a weighted average protected for a copper price of $3 54 per pound.
Meanwhile, we have 21000 tons of colors in our portfolio with a weighted average ceiling price of $4 27 per pound.
Following the ramp up the amount of early development project, we have no further comprehension in place and we will have full exposure to the copper price.
Now I'll hand, it over to cash flow for the operations review.
Thanks Robyn.
Pinto Valley produced $13 7000 tonnes of copper at a <unk> cash cost.
$2 83 per payable pound during Q3 operations were impacted by unplanned downtime in the secondary crushing circuit, resulting in approximately eight lost days of production.
As we discussed last quarter, we are placing an emphasis on operational discipline and key performance indicators in order to improve online time and reliability.
We are prioritizing asset integrity assessments based on downtime and we are implementing condition monitoring to improve our performance.
Until valley performed well in October and is set up to have its best quarter of the year in Q4, driven by higher grades and more consistent throughput.
We continue to engage with our neighbors in the Pinto Valley district during the quarter as we explored value creation opportunities.
Moving to slide 12.
In mind delivered a solid Q3, producing 5900 tonnes of copper at a C. One cash cost of $1 85 per payable pound.
The mine demonstrated another quarter of nameplate mining rates after transitioning to the new cut and fill mining method earlier this year.
Cash costs in the quarter were impacted by crusher availability.
And unfavorable foreign exchange rates.
Our mental blancos asset as highlighted on slide 13.
Sulphide and cathode production yielded 12 1000 tonnes of copper at.
At a blended C. One cash costs of $2 82 per payable pound.
Sulfide operations. This year have not performed consistently at nameplate levels, while the major components, including the crushing grinding and flotation circuits.
Remained more than capable of throughput rates in excess of 20000 tonnes per day.
Linkages between these systems, including pumps and pipes have exhibited bottlenecks.
We are executing on our updated plan to address plant stability that includes improved maintenance and optimization of the concentrator and tailing system.
The plan incorporates feedback from our new SVP head of Chile, Jim Whittaker, and our new General manager Heinie Rivera.
We have also incorporated the learnings to date from operating the plant since the expansion was completed.
We worked through several areas during the quarter and we have addressed several of the bottlenecks in the crushing and grinding area of the mine.
To facilitate a sustainable 20000 tonnes per day throughput rate, we have identified additional tailings handling and pumping infrastructure that we expect to receive and install in early 2024.
After which we expect to be operating at nameplate throughput rates.
We are confident that we have both the team in place.
And the asset that will support full run rates.
Our efforts focused on our efforts are focused on achieving this and after that we will recommence our studies related to mental <unk> Blancos phase II as we believe the ore body can support a larger operation.
Now on to mental burden on slide 14.
Q3, 2023 oxide production was.
8600.
Tony's of copper in cathode at <unk> cash cost of $3 74 per payable pound.
Oxide production and costs in the quarter were impacted by a temporary sulphuric acid supply shortfall, which has since been rectified.
Most important significant progress was achieved at the MVP during Q3 <unk>.
Progress now stands at 93%.
With $763 million spent as of September 30.
As previously mentioned by John.
We have increased our total capital estimate for the project.
By 5% from the original 2022.
Estimate.
However, we remain on track for the project completion by year end, followed by a ramp up in 2024.
The mental burden development project will produce approximately 120000 tons of combined cathode and copper in concentrate with over 30000 ounces of gold per year.
Slides 15 through 18 show construction progress at several key areas of the PDP.
Slide 15 shows the primary crusher in the background with the cupboard coarse ore stockpile in the foreground.
During the third quarter, we commenced commissioning tests of the primary crusher.
Slide 16.
Shows a close up of the processing flow sheet from a bird's eye view.
The ball and Sag mills can be seen on the right.
During the quarter, we installed the lubrication and cooling systems completed initial testing of these components and prefer performed the first rotation of these mills.
On slide 17, we highlight the tailing storage facility mass excavation is complete and the starter walls cutoff trench are nearing completion. We are also in the final stages of liner installation.
And lastly on slide 18, Youll find the desalination plant and has now been expanded to support the MVP and we are currently ramping up flow rates.
Capacity.
I am excited to complete construction of the <unk> by year end and transition into the ramp up stage for the project.
Now over to Wendy King for the sustainability review.
Thank you Pascal we are now on slide 19, with a review of our sustainability highlights for Q3.
As previously disclosed we are thrilled that both Manto bear day in Mantas Blancos were awarded the copper Mark.
Responsible operating practices are a vital component of our commitment to the environment, our employees local communities and governments.
And must remain front of mind in everything we do.
The copper market is a powerful advocate for transparency and accountability and reinforces our values on responsible sustainable production.
We take pride in the achievements of our Chilean operations and we are actively striving to replicate this success at Pinto Valley and coasts.
Also in Chile, we were recently recognized by <unk> Atacama for achievements and advances in sustainability.
For our contributions to sustainable development in the region.
The award was presented to John Mckenzie by the Chilean Minister of mines and is another testament to the great work being done by our teams at mental better day mental Blancos.
At closing during the quarter, we enhanced our biodiversity monitoring with camera traps, which automatically capture photos driven by a change in the activity.
<unk>.
Five of these cameras have been deployed throughout the site and will result in a significant difference in our ability to monitor local species.
At Pinto Valley, we incorporated additional air quality monitoring stations to help us improve our understanding of localized air quality differences.
So we can continue to safeguard the health of workers and our communities.
During the quarter, we continued supporting local community initiatives.
<unk> community safety education.
Local school fund raising technical training and community celebrations.
Pinto Valley hosted a local community event that raised more than 50000 for three areas schools co.
<unk> hosted a daylong community safety fare for families teaching safety skills in a fun and interactive way.
In Chile about 90 local community members graduated from <unk> learning for development program.
Earnings certificates to increase their employability in the areas of food handling security.
Forklift Crane operations warehousing and mining equipment maintenance.
This supports our strategy to develop technical skills in local communities.
In Chile, we have continued our initiatives of joining together with some of our partners to invest in community projects to have a more significant impact on the community programs.
We are also working to develop these initiatives and the other jurisdictions in which we operate.
Lastly, we anticipate releasing our first combined sustainability report for capstone copper growing responsibly.
This will be released in the coming weeks.
We're very proud of this report, which provides enhanced information on our global policies related to this.
Sustainability and includes emissions data reported per unit of ore processed and unit of copper produced to give a clear and transparent picture of our emissions to allow stakeholders to follow our progress.
Yeah.
Towards our diversity and inclusion objectives. We also highlight in the report the promotion of several women in key management roles in Chile, and Pinto Valley.
Women in leadership roles are a crucial driver for attracting and retaining more women to mining and our operations.
And with that I'd like to pass it back to John.
Thanks Randy.
Turning to slide <unk>.
We've outlined our sector, leading growth plans and some of the additional upside within our portfolio.
As can be seen we expect MVP at its run rate production level to bring us to a consolidated annual level of around 260000 tons of copper.
At significantly lower costs.
From there we have a pathway to over 380000 tons of copper production with the fully permitted Santa Domingo project.
We have high returning brownfield expansions at both months.
And months of Splunk was with low capital intensity that are not pictured on the slide.
And then further upside exists with oxides at Sunset Domingo utilizing our Sx EW thoughts as months of Ed.
<unk> phase II.
Growth in our Pennsylvania districts and cobalt Optionality.
<unk> SD districts.
On slide 21.
We show more detail around what is driving the significant near term cost reduction at MVP.
As can be seen in the graph on the left 70% of our copper production today is from sulfides with the remaining 30% from higher cost oxides.
The oxide production has both lower grades and lower recoveries as the highest grade oxides had previously been mined and processed with months of Ed <unk> with.
With MVP at full run rates, our copper production will be split roughly 85% sulfides and 15% oxides.
In the Gulf in the Middle you can see the impact this has on our weighted average grades and recoveries from.
From a blended grade processed at three 5% copper this year, we will move to a blended copper grade of just over <unk>, 6% with <unk> up and running.
Similarly average recoveries will improve from 80% to closer to 90% across our portfolio.
And then the charts on the right. This shows the overall effect a significant increase in copper production and a significant reduction in our unit costs, leading to an overall increase in margin.
Okay.
On slide 22, we highlight the timelines for those catalysts and studies, we have over the next year that supports our growth plans with further upside beyond this across our portfolio.
We've continued to build a highly talented technical team and are working with strong engineering firms to execute on these studies.
We now expect to deliver the updates at sensitive binga feasibility study in the first half of 2024.
As we've advanced the study we are of the view that this does not yet reflect the optimal project configuration and design, particularly as we take into account the synergies with lots of Eddie and <unk> improvements that we have identified.
As such we have decided to commit additional time to ensuring that the project is designed and configured in a way that maximizes the value created for capstone copper prior to advancing to the phase of detailed engineering.
We believe that this approach is in line with best practice in large project developments.
In conclusion.
We reiterate that we are in the midst of a transformational period for capstone.
I am very excited that we're on track for project completion at MVP by year end that will lead to a step change to 260000 tons of copper per year at significantly lower costs.
This will expand margins and drive record operating cash flow generation for the company.
With that we're now ready to take questions.
Thank you, ladies and gentlemen, we will now conduct the question and answer session.
If you have a question. Please press star one on your touch pad.
If you wish to cancel the request. Please press Star then the number two.
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Your first question comes from.
Artist Walter.
From Scotia Bank.
Your line is now open.
Hi, good morning.
Question about the Manto birdie.
Capex increase.
The $870 million plus 5%.
Can you give us some better color on what's driving that increase and also maybe more importantly, what confidence do you have that this is the last increase and the 870 is going to be a final number. We've just seen another project in the ramp up phase announced that further capex overrun so I guess trying to get.
A bit more color on.
On why or if you think the 70 will be the final number.
Yeah.
Thanks <unk>.
So in terms of the increase in cost from 825 up to up to 870.
It's basically split into two components of $20 million. Each the first is really around sort of certain inflationary impacts we.
We've already received three of the Big electric shovels, it's at months of EDA the fourth shovel.
It's actually been delivered.
It is currently being assembled.
However that was subject to an escalation clause and with sort of higher inflation rates.
That's sort of an additional number that wasn't taken into account in that 825.
And then I think also in.
Whilst we have.
Our fixed price contract with the sink.
The tailings facility was on the unit rates basis, and so I think particularly the impact of higher diesel prices.
<unk> impacted the.
The sort of all of us moving we needed for developing the trench and the startup.
X.
At the tailings facility.
And then also some of the pre stripping work.
Was similarly impacted by slightly higher diesel prices.
The other $20 million came from.
Areas that we identified would would actually just improve and enhance the projects.
So we're going to be transporting all of our concentrate supports using a relatively new technology called retainers.
These are essentially containers, but ones, which.
Food at the.
At the sites are then fully sealed.
Can be transported to the port they actually acts as the storage at the ports.
And then chip directly.
Into the into the vessel.
So it's it is what we would regard as sort of leading practice in terms of kind of.
Transports.
Storage of concentrates.
And when we kind of looked at.
Sure.
We had already ordered these retailers we already own.
We initially regarded as sufficient retainers, but we decided to to order more just to take into account sort of any potential fluctuations in.
You get things like swells at the ports, which can delay shipments and we just wanted to make sure that we had adequate capacity in place.
We also took the decision to put in a water reservoir and.
And that is really just based on.
We we know that we have.
So there's more than sufficient water for the MVP.
However, during the ramp up you always have a water balance and some of that water comes out of the tailings facility.
And sort of recovery from from tailings, but that takes some time before that as is.
Is actually.
Available to you. So we just felt that.
So sort of mitigates any watered issues, we would build in additional water reservoir for the project.
And then we've added just a little bit of extra Kemp space.
<unk> warehouse space.
Just to.
Sort of beta service the business going forward.
We have been internalizing quite a few of our functions from external contractors to things like maintenance to doing it ourselves.
And so.
Took the decision to put in some extra.
Facilities.
So that's the background to the increase.
We.
We've got a pretty clear line of sight to the end of construction.
We really in the stage of sort of final piping, it's now cabling and instrumentation.
Everything that the project requires is already on site.
So it's.
And that's really down to just completing these these lost sort of stages of work.
So we feel pretty comfortable in terms of the capital number that we've put out there.
We don't see any reason to expect any difficulties during the the ramp up of the project.
Clearly.
If one does have any issues that can cause.
And impact on sort of additional capex required, but we certainly don't anticipate that at this stage.
What are the ways, we mitigated that risk was.
We.
The key reason, we appointed <unk> <unk> two b.
BPC contractor on this on this contract was.
They are both four of these so almost identical concentrates as before three of which have been and in South America.
They have been.
Both these before.
In our case, they will be ramping it up as they have done with each of those other concentrates they have.
But they have books.
So I think.
We derived quite a lot of confidence from from that experience that they have.
We are also on all sides.
Been spending pretty much the large part of the last year working on operational readiness.
Our own operating team is in place I think we've got top notch people that we've been able to recruit it's sort of at every level.
And so I think all of that gives us.
It gives us a high level of confidence in having a successful ramp up of the projects we have.
We've budgeted for six months ramp up period, we really hope to do a little bit better than that but our current assumption is six months and that's that's very much in line with.
We're seeing coast previous performance in ramping up very similar concentrations to this one.
I think the other thing that gives us the confidence as you know the mine is ready in fact, it's more than radio.
Now stockpiled 5 million tons of.
Although sulphide all sitting in front of the crushes.
From a mining point of view, we've actually exposed around eight years with that sulfide ore.
So the mine is basically just waiting now for the plant to to be ready to take the <unk>.
Thanks, Shawn just a quick follow up question for Robyn with the ramp up.
Call. It in Q1 Q2 next year is your expectation that all of the costs involved with ramping will be expensed or could we see kind of a capitalization of costs like we've seen with.
Call it with <unk> I'm.
Just wondering how to think about modeling Q1 Q2.
Yes, we're looking at what <unk> doing over there.
Analyze that a bit further but really the <unk>.
For our standard is once you have production you start expensing those costs, so until you get the concentrate.
Your books, but once once it's.
On your books and you produce at your expense. So there will be a certain period of time, we can capitalize ramp up commissioning costs, which is included in this age 70.
But beyond that we expect to expense it.
Thanks.
Your next question comes from Ralph <unk> from eight capital. Your line is now open.
Thanks, operator.
Good morning, everyone.
Johnny cash or when you talk about the Pinto Valley asset integrity program right and you brought up these kpis I'm. Just wondering is there sort of strategic management of the grade and the mine plan being looked at or is this mostly focused on costs and continuous improvements are or is.
Or any impact on the mine plan itself, including stripping and with that.
Are we potentially looking at some cost improvements going forward.
Thanks Ross.
Look it's not the mining its not the mine.
That's performing as it should the grades are coming out and a reconciliation as they should.
I'll just start by saying we've been really pleased with our efforts to date and what we've achieved in October.
So we're off to a good start here for our catch up in Q4.
So we've got a right foot forward.
That gives us some assurance is that some of the.
Initiatives that we've undertaken.
In our asset integrity and maintenance programs are starting to pay off.
So one of the things we did was a structural design change.
Right.
We're going to implement a maintenance program and a maintenance manager, it's a different setup than what we had at Pinto Valley before where maintenance was in the domain of bite at the mine manager of the plant manager and so what we're doing is we're elevating.
The expectation out of our maintenance departments and improving those processes and we actually appointed.
In the last quarter, a VP of minor maintenance.
<unk> excels in that area Hayden wholesale and then he has a fixed plant in.
David Jewel of director of asset integrity, Rob tailored so they've been instrumental in helping us improve our uptime and reduce our downtime on our critical components, which are usually a revolving around the.
Crusher infrastructure and conveyance infrastructure that feed our mills.
So we've seen already improvements there and specifically those are the areas that are changing their performance and those are the areas that we're creating the bottlenecks of our production in Q3 and a little in Q2 so.
So I'm happy to say that were seeing are better and it also helps that.
Our schedule our budget or plan for the end of the year was a little higher grade, it's actually the highest grade in the sequence, where we're coming into an <unk> and we're seeing that come forward too.
Okay. Good to hear thanks for that and at muscles Blancos it sounded like castle.
20000 tonnes a day is something like an end of Q1 'twenty four target is sort of a sort of a rational expectations, maybe some spillover into sort of Q2 of 2024 and just wondering if that's something that we should be going by and do you think there is potential for some spillover capex into 2024 just to be able to.
Iron ore to getting up to full capacity.
Yes, we're working through the plan there.
So there is there is there is going to be in the order of $20 million more required to bring the plant to the state that's required.
I think we've described it before the major components are there they have the capacity.
Some of the piping cabling and instrumentation.
That we're upgrading to be able to do it and one of the things that we've zeroed in on and focused is actually the backend of the plant.
The dewatering and tailings infrastructure.
While it looked like on paper it was capable of doing the design of 20000 tons, we're going to have to upgrade that area.
That is the area, where there are some longer lead items.
That will take us to the time periods, you mentioned near the end of Q1 start of Q2 to be able to get this plant consistently and sustainably to 20000 tonnes like we've achieved over 20000 tons sporadically, but what we want is consistent production out of it and that's the area. We're focusing on is the backend of the plant and some upgrade.
To sum instrumentation and piping.
In some other areas.
But it's going to take another.
From where we're sitting today that amount of time to be able to put these in.
Again.
We have a.
New general manager for Chile.
For.
Sorry metals, Blancos and we have a replace some of the team.
And these are really strong individuals with a lot of experience in this type of work. So we're very confident in the plans now going forward, they're very detailed out we're no longer.
Debottlenecking one issue at a time and we're tackling the remaining issues at hand and that is the timeframe, we will require to be able to install and procure what we need.
That's very helpful color capsule. Thank you.
Ladies and gentlemen, as a reminder, should you have any questions. Please press star followed by the number one.
There are no further questions at this time John Please proceed with your closing remarks.
Alright, we look forward to updating you again in February with our Q4 results and until then keep will and feel free to reach out to Gerald or Daniel if you have any further questions.
Thank you for your continued support and have a good day.
Ladies and gentlemen, this concludes today's conference call. Thank you for joining you may now disconnect.