Q4 2023 Sandstorm Gold Ltd Earnings Call
Welcome to our conference call. Please standby your conference will begin in approximately two minutes.
[music].
Good morning, My name is <unk> and I will be your conference operator today at this time I would like to welcome everyone to the sandstorm gold royalties to tell somebody itchy annual and fourth quarter results conference call. All lines have been placed on mute to prevent any background noise.
Where does some of the commentary may contain forward looking statements. There can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply.
Press Star then the number one on your telephone keypad. If you would like to withdraw your question is supposed to start in the number two thank you. Mr. Watson you may begin your conference.
Thank you Ian and good morning, everyone and thank you for calling into our Q4 and 2023 year end earnings call as usual in a few minutes I'll hand things over tariff at our CFO to review the earnings highlights, but before I do that I'd like to take the time to give an update of sandstorms business and the things that I will specifically focus on whats.
I believe are important to shareholders or fivefold.
The first one being our updated guidance not only for 2024, specifically, but also are longer than five year term guidance.
As part of this guidance will also be talking about the timing of our two growth projects being quiet about it and the Mario project.
Number two our current debt levels, including our projected debt repayments as well as the non core asset sales process that we're going to use to achieve this number three our current share buyback plans. Once we have achieved certain debt repayment thresholds.
Number four what this production guidance range in terms of cash flow expectations at todays gold price and finally, a real quick summary of the key catalysts that we believe sandstorm shareholders.
Look forward to so starting off with our updated guidance. This chart shows that updated production expectations for the next 15 years and as you can see over the next 15 years, we have substantial growth that we can look forward to.
Our current expectation for 2020 for production and our internal sandstorm budget is approximately the midpoint of the range that we're giving for guidance, which is 75000 to 90000 ounces, which is a slight pullback, but by 2023 numbers.
As a reminder, on our Q3 earnings call. We explained that investors should expect a slight pull back this year because in 2023, we had approximately 5000 ounces from a onetime payments on the mountain Hamilton royalty, that's nonrecurring as well as reduced deliveries on the Mercedes stream because of the restructuring of the stream to drop extra monthly deliveries. So while there's a couple of other small things.
So 2024 is a bit of a dip year. However towards the end of this year, we expect equinox to habits greenstone mine up and running and I haven't heard of habits flat reef brighten up and running so production should increase in future years from these high quality long life mines.
In our financial statements in press release, we gave a very wide range for 2024 production guidance and I apologize for such a wide range, but the goal is that each quarter, we'll take that range of 75000 to 90000 ounces and will materially narrow it every quarter.
More and more accurate and meaningful information the reason for the wider range. This year is primarily due to two factors that affect the ability of our gold equivalent els sales or ability to predict it with those two primary factors being.
Number one we're.
Having to estimate how many ounces we will get this year for the new greenstone stream as the mine completes construction and begins ramping up into commercial production.
A very important stream for us and for our future and once it's fully up and running it should be 10000 ounces of gold equivalent production per year to sandstorm, which will be fantastic. However mine ramp ramp ups are notoriously challenging to predict and it's hard for us to predict the timing. So we're giving ourselves a greater range. This year.
The second issue is that our guidance is gold equivalent and this means that we have to take our silver and copper revenue and turn it into gold equivalent and the economy is in a dynamic phase right now and commodity prices are changing rapidly and I'm very very bullish on the price of gold over the next year.
The irony is if the gold price goes up we make more money and it's great for sandstorm.
That means that the silver and the copper carry into less ounces of gold equivalent. So overall right now you.
You have to gold prices go up its great prospects don't want us to Miss the bottom end of our guidance because of it. So again, it's a wider sales range, we will tighten that guidance range every quarter in future years, it will be easier for us to predict gold equivalent ounces. Because every single major asset that we have in construction or going into construction soon as a gold stream of royalty and soon over 80.
Per cent to our revenue will be from gold, so there'd be less fluctuations in our calculations due to fluctuations in gold price.
Going forward from this chart you can see that one's hard modern and Mara have been built our gold equivalent production should go to over 140000 ounces per year for now it's very important to note that our official guidance of 125000 ounces per year within the next five years includes hide modern.
But it excludes Mara being built just until we have more definitive timing from Glencore on the Bayou project. If Mara has built and hot button is delayed it would be closer to 110000 ounces per year, and then ramping up from there.
Martin is bell Tomorrow is delayed then it would be the 125000 ounces per year that's.
Our current guidance and again at both mines are built that puts us over 140000 ounces a year. There are many possible permutations. However, it's worth noting that despite what happened to SSR. This week. The hot-button mine, which is fully permitted and are slated for full construction. This year can be delayed for up to an entire year and we would still hit this guidance.
So there's plenty of time for delays and for our current guidance just there'll be achieved.
Speaking of SSR I think its worth to be addressing that so they've been getting a number of questions about it.
For those of you who have not been following their situation SSR, who is the project operator of hot button.
Sad and unfortunate slip of the heap leach pad at an entirely different by named Triple there.
At the moment are only contact with them has been true.
Express our sincere condolences for what has happened.
As a result, we don't have any more information in the public.
Has about this event and as the mine has nothing to do with sandstorm or any of our investments other than the fact that SSR owns 10% and has the right to earn into 40% of hot button in the market is worried that these challenges mainly in the montney gets delayed a bit until issues get worked out.
I don't have better information in the public and therefore I won't be taking any questions on this call about trippler or attempt to guess what happened to triple or or what will happen with SSR, but what I can say and we'll address and answer questions on is and even if there is a full delay we would still hit our guidance and we can talk about timing really.
To that.
Worth, noting that the two mining technical issues of Trippler being a heap leach slip and possibly cyanide has nothing to do with like minded. There is no heap leach of Hot Martin and the mine was specifically designed to have no cyanide. So it'd be environmentally friendly. So if there is some reverberation the mining industry for this incident. These technical issues are not applicable to us.
On the data circular event was announced chancellor of stock price dropped 10%.
Quite candidly, it's a crazy overreaction by people who don't understand.
<unk> was already trading at a discount to our carrying value because of hot button.
Only 12% of our NAV and it isn't our only growth asset as we have the Morris starting to come into the picture and wire will eventually be a much bigger part of our now is that a hard one because it is a 30 year mine life already.
So I believe the market reaction was to take the entire value of hot button out over market cap again, even though it was already mostly out of our value.
Some simple math the worst case for sandstorm is that the project is delayed maybe it goes on time, maybe it's delayed six months, maybe it's delayed a year or two but it will go into production, one way or another operator or another.
And it's worth 12% of our NAV, assuming it goes into construction this year than a two year delay only reduces our company's now by one 3% from the loss of the time value of money. So.
So a 10% drop in share prices happening.
Because what I'm, where people aren't thinking about this critically fortunately for us our balance sheet continues to strengthen and soon we'll be buying back our own shares.
Yes.
And this brings me to my next point, which.
Which is the progress that we're making on our debt repayment and how close we are to beginning to repurchase our own shares.
Spoiler alert, we're very close to being able to do that.
At December 31st our balance sheet showed that we had our debt down to $436 million, but we've been aggressively paying it off and.
And we've recently sold another $7 million worth of other mining companies equity from our portfolio, which combined with cash flow from operations. We now have that down to $419 million as of this morning, and we remain on target to get our debt down to below $350 million by the end of the year.
We have stated that as part of this objective will sell a minimum of $40 million of noncore assets to help with this debt repayment and hopefully higher and we have now completed 17 million with another 23 plus million to go and we're now well into that process and we have good visibility on where that additional money, it's going to be coming from so were confident in hitting.
Net debt reduction target by the end of the year.
Why is this so significant for.
For those who haven't heard me say this before we have chosen $350 million as a figure that we believe that that is so comfortably low at we can then begin dividing future cash flows between debt repayments and share repurchases. We believe this will happen right at a time when the fed is in full pivot mode interest rates are coming down we will have the wind at our back.
From a monetary policy perspective, right winter greenstone mine and flat rate streams are coming online are debt lower and with share repurchases I believe our share price would trade up materially and I look forward to it greatly.
In the past month, I've talked to a number of institutional investors at sandstorm that represent.
Approximately 30% of our Investor base and 100% every single one of them are signed up to this planned and approved this plan and Theyre looking for disinfection point, where sandstorms balance sheet will be at a place where we can continue to reduce debt and buy back our own shares.
Real quickly and speaking of cash flow. This brings me to my next point about record cash flow sandstorm portfolio is expected to continue to generate substantial cash flow.
And this number is only going to grow as greenstone plat Reef Robertson Turquoise Hill Hot button Tomorrow, I'll start producing for us overtime.
At spot gold prices, we see a portfolio generating cash flow of up to $140 million per year growing to over $200 million per year five years from now.
And lastly, I think it's worth summarizing sandstorms catalysts going forward very quickly those things being again as I mentioned getting debt to below $350 million by the end of the year as beginning to repurchase our own shares.
First production from greenstone imply reef hard modern commercial construction beginning even if it is a bit delayed its value has been entirely taken out of our market cap. So any clarity on timing or any progress will be a catalyst from here forward.
A new feasibility coming out tomorrow from Glencore and timing clarity from that.
On the metals are strong our balance sheet is now strong and getting stronger our cash flow is strong.
Knowing that our debt is dropping and share buybacks are around the corner.
So with that I'm going to hand, it over to our fan to discuss the specific results.
Thank you Nolan despite a.
Challenging market in 2023, I'm happy to report the Sandstorms financial results set several new records for the company and reflect the strength of an outstanding cash flowing royalty portfolio.
In 2023 Sandstorm had sales.
Royalties and income from other interests of over $190 million of which nearly 180 million was from the sales and royalty revenue.
The Delta between these two numbers primarily reflects the onetime contractual payment associated with the company's mountain Hamilton royalty that was received in the first quarter of 2023.
Sandstorm set a new record in terms of production as well selling over 97000 attributable gold equivalent ounces. During the year. This is an 18% increase in ounces sold year over year.
Looking at the annual financial results in a bit more detail. This table shows the breakdown of total revenue, including $107 million attributable to sales from our stream assets.
And $73 million from royalty revenues.
Compared to 2022, the average realized gold price from the company's gold streams with approximately 7% higher in 2023, while the average cash cost per attributable ounce with slightly lower.
$223 per ounce.
This calculates the cash operating margins of over $1700 per ounce.
Nearly 90% profit margins on each ounce sold by the company.
Total cash flows from operating activities, excluding changes in noncash working capital were just over $150 million.
As Nolan discussed we've been concentrating on deleveraging the company's balance sheet.
Following a number of growth acquisitions in 2022, using the company's strong cash flows to pay down bank debt as quickly as possible.
With each passing quarter sandstorms financial position continues to strengthen and we currently have over $200 million in capital available to us.
Net income for the year ended 2023 was $42 $7 million compared to $78 $5 million in 2022.
The decrease in net income is due to a combination of factors, including certain gains recognized in 2022 that did not occur in 2023, namely $37 million in gains, resulting from the sale of the company's hop modern interest and equity interests in entre resources to horizon copper.
And $25 8 million in gains on the disposal of certain assets primarily related to the sale of a portfolio of royalties.
Sandbox royalties all occurring in 2022.
In 2023, there was a $22 2 million dollar increase in finance expense primarily related to interest paid on the company's revolving facility, which was drawn down in the third quarter of 2022 to finance our acquisitions.
We anticipate that these interest payments will decline as we continue to pay down debt.
The decrease in net income was partially offset by a $39 million increase in revenue.
$13 $9 million increase in the gain recognized on the revaluation of the company's investments.
$11 8 million gain in.
In revenue recognized primarily related to the company's mountain Hamilton royalty under total sales royalties and other contractual income.
And a $4 million gain on the disposal of the company's Blackwater and alcohol royalties to sandbox royalties.
Drilling down to the fourth quarter financial results. The company sold 23250 Goldman equivalent ounces, resulting in revenue of $44 $5 million for the quarter, an increase of 7% and 16% respectively.
When compared to the fourth quarter in 2022.
Cash operating margins per ounce for the quarter were nearly 90%.
In line with the average for the fiscal year, resulting in cash flow from operating activities. Excluding changes in noncash working capital of $36 5 million, an increase of 22% compared to the same period in the prior year.
Net income for the fourth quarter was $24 5 million compared to a loss of $2 1 million during the same period of 2022.
The increase in net income was due to a number of factors, including gains recognized on the company's investments, mostly due to an increase in the fair value of the company's sandbox and horizon copper debentures increase in revenue for the quarter and a decrease in senior management compensation.
In terms of where gold equivalent production came from in 2023. This chart shows the breakdown by asset.
Cerro Moro with the top producing asset with over 13500 attributable ounces sold.
From Mercedes the company sold 12800 gold equivalent ounces.
In January 2020 for Sandstorm closed its previously announced transaction to amend its existing Golden Silver stream agreement on the Mercedes mine with Bear Creek mining the.
The amended stream terms are effective Jan one 2024.
In June 2023, Sandstorm completed the final part of this transaction with Verizon copper, where horizon acquired a portion of that and do you mean, a 1.66% NPI royalty sands.
Sandstorm received a $1 six 6% silver stream referenced silver production and to Mena and retained a portion of the residual royalty.
During 2023 over 7700 gold equivalent ounces were attributable to the anthem in assets.
We were also thrilled to see news coming out this morning, where the mine had received approval, but modified EIA, which extends the mine life. Another decade 2036, highlighting the truly world class nature of the asset we look forward to further updates and extensions.
The fourth largest contributor to production with Lundin Mining's, Japan project.
In 2023, London completed additional drilling at the swab deposit, which is located within sandstorm stream, London reporting 25% growth in measured and indicated copper mineral resources at Schwab.
Lundin has continue to evaluate options for future processing, which might include among other options integrating the material into <unk> processing facility.
Looking at annual production in terms of regional metal breakdown production from assets in North America contributed nearly 40% to gold equivalent ounces sold and 47% from South American mines.
Precious metals continue to be sandstorms focus.
In 2023 over 70% of production came from Goldman silver, while 19% of gold equivalent production came from copper assets.
With several key gold projects in development, we expect 80% of revenues that come from gold and silver by 2028.
For 2024 based on the company's existing streams and royalties attributable gold equivalent ounces are forecasted to be 75000.
And 90000 ounces.
The Companys production forecast and expect to reach approximately 125000 attributable gold equivalent ounces within the next five years.
And with that I'll pass it over to Dave to discuss some of our assets and a few highlights Dave.
Great. Thanks, <unk> and good morning, everyone.
They are focusing on a couple of assets that are rarely touched upon but for diabetes into that let's discuss the updated guidance Ruta del Mar Tech.
<unk> continues to shine brighter with each passing update since construction began management has consistently exceeded market expectations and the full year of 2023 was no exception with lundin gold overseeing production of over 481000 ounces of gold.
The good news continues as lending gold guidance for up to 500000 ounces with production in 2024 and up to 520000 ounces of production of both 2025 and 2026. This increase is attributed to ongoing investments in plant throughput Amy.
For a nameplate of about 5000 tonnes per day and upgrades concentrated to enhance metallurgical recovery.
In addition to mill upgrades lending gold intends to release new reserves based on their resource conversion program. In 2023. They also plan to continue an aggressive near mine exploration program that performed exceptionally well in 2023.
'twenty 'twenty four program is expected to cost $30 million with intended drilling of 46000 meters from both surface and underground platforms, including successful targets from 2020 threes, such as F. D N S and Bonanza sewer.
Furthermore, lending gold will continue exploration on regional targets in the swears basin with an additional 10000 meters chili's.
Moving onto Horne five operated by Falco resources. The project has undergone a significant transition following the recent announcement of the operating license and indemnity agreement with Glencore. This marks a major milestone, allowing the project to move into a focused permitting phase and <unk>.
Preparation for construction.
As a reminder, the horn mine located just outside of historical mining Center will then noranda is a past producer and the Horne five deposit is a poly metallic extension of the original mine designed to be one of the low lowest cost underground gold producers in the world based on the 20 <unk>.
'twenty one feasibility study.
With over 11 million ounces of gold and over $1 1 million tonnes of copper produced historically.
Project currently Boes over 80 million tons of reserves with a grade of 224 grams per ton gold equivalent and a further 24 million tonnes of inferred resources at 222 grams per ton gold equivalent.
Now that the important O L. I E agreement is in place with Glencore.
<unk> 24 will focus on pushing forward permitting and exploring project financing options to VAALCO team has worked tirelessly to reach this point and we eagerly await the next catalyst in the assets development are 2% Dennis <unk> on this massive deposit has.
As the potential to cash flow for a generation of more but has yet to be worked into our future production guidance. However, with the recent development it gets closer and closer to a definitive timeline.
Lastly, let's discuss pine Hyundai.
Leveraging on our involvement in this asset Toussaud's come to mind sandstorm has been around longer than I realized and the royalty company model is truly powerful we first invest in a bind Hyundai and <unk> resource Corp. After just the first few drill holes were completed on this asset and are Dean was.
Considered early stage explore with a good first mover advantage in Mongolia.
Today, the project, both $1 billion partner and the Mongolian Mining Corporation and is well into its construction just eight years after discovery.
Fully financed to production. The project is expected to operate as one of the highest grade open pit gold projects in the world within the next 18 months for Sandstorm, we hold a 1% MSR in this asset along with an additional 1% MSR on their exciting exploration project Dalton.
As the company develops this mine it realizes expansion potential expansion.
We may see this as a sustainable long term resource source of revenue from one of the more well established companies and a prolific mineral jurisdiction.
Although in the last eight years have not been easy to develop mines Youre Dean has done a remarkable job of moving the project forward and we are delighted to see a project moves so quickly from discovery to production.
So with that I'll hand over the call to the operator for a Q&A session.
Please feel free to ask questions about the royalties and streams of projects. Thank you.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on your telephone keypad.
Hey.
Tom Technology request questions will be taken in the order received should you wish to cancel your request. Please press the star followed with it too.
Thank you speaker phone please keep the handset before pressing any one moment. Please for your first question.
Your first question comes from the line of Michael <unk> from H C. Wainwright. Please go ahead.
How low everybody good morning, and thanks for taking my questions.
I appreciate the whole thing the SSR thing most of my questions were sort of going into that direction, but as per your request I'll hold off so I got a few other ones as well.
When it comes to the monetization of the $40 million to $100 million of non core assets are there any that stand out in regards to market interest and can you maybe provide some color on the discount rates that youre seeing buyers a player that's for that matter you apply to things.
And in General just how are the offers coming in in regards to cash versus stock. Please.
Hey, good questions. So I would say starting off yes.
We put out sort of a tender to have a bunch of companies look at a number of.
A different royalties.
Certainly ones that do stand out within that package, just because it's in a competitive process right now specifically pointed those out.
We're trying to keep our.
Cards close to our chest with respect to people that we're negotiating with right now.
But what I can say from what we see is that it's a robust process, we see where we're going to get to that number the potentially higher and there may or may not be some things that take it well well over that number and we're working on that.
Right now.
Yes.
Sorry.
Your next question was about the.
The already offers cash versus stock.
Yeah. So great question again, so I'll start or all cash we're not accepting any stock as part of this process from any company. So everything in there is cash.
Okay. That's actually interesting okay. I may have missed this in the past them.
Fair enough and then just moving on to something.
More or less in the same direction, one or $36 million in December $419 million as of this morning.
Paul had said what are your plans quarter by quarter for the remainder of the year and if you can't fully break it down I wouldn't blame you.
The idea at least where you expected that to be at the end of the first quarter and indeed just.
Show Us how contingent all of this is based on the sale of non core assets.
How much of it is contingent on the sale of noncore assets. Please thank you very much.
So I think it's because some of the noncore asset processes are lumpy and there's a couple of things in there, it's hard to predict which quarter, they're going to land and so I'll talk more on the whole year. So.
To get below $350 million by December or sometime this year, we only need another $20 million and change in the non core asset sale process and we have multiple different ways to get there.
We'll get there.
It's harder to tell quarter by quarter, just because theres different suites.
Payables that are.
One of the things that goes around us our interest expenses is constant quarter over quarter, but when we actually pay the interest versus when the interest accrues, sometimes flips over quarter. So it's hard to predict at an exact quarter or 419 million now will obviously be lower than that.
Six weeks when the quarter ends and then we'll just continue to bring it down. So we're really comfortable that we will hit that 350 by Zimmer.
Okay. Thanks for taking my questions I'll get back in queue.
Thank you and your next question comes from the line of Derek MA from TD Securities. Please go ahead.
Good morning, and thank you I had a question on the 15 year outlook that you guys posted on the presentation. It looks like there is a drop in 2027 tons of Geos 10 to 15000 ounces at that kind of been sprinkled into the 2030 can you talk about what drove that change in thinking in.
In 2027 and is that a reflection of Hod maden.
Okay.
So theres a SSR has come out with guidance related specifically to high bought it in 2027 and with respect to the ramp up so that Kurt short it is showing that guidance that came from SSR.
Okay.
Got it which is <unk>, which is a wrap up ramp up year with with strong production, but got us all your production alright.
Alright, great.
Then Robertson is that included in 2027, and how many England T O W.
And so I expect to get from them.
Robertson is not in 2027, if memory serves me correct in our budget Robertson kicks in in 2020.
In our models.
And annual deals.
The range you guys expect to get from Robertson.
It's going to depend here, you're right I don't have the regulator in front of me, but it's going to be a few thousand ounces a year at least.
Okay, and then finally on Mara.
Mine is on the timing of payments when you guys execute that option on Mara is that a one time payment where you pay up to 225 million or is it an initial payment and then spread out over construction.
That's a really important question actually.
So for those who aren't familiar with it when it used to when we originally signed the option agreement with Humana is that they had to get the mind. One third are built and at that point in time, they would knock on our door and say to answer when you have your option. If we say, yes, then we have to pay the $225 million right away.
When glencore came in and bought out the minority interest he came back to US and said, we would like to rework that so that sandstorm can you make your election, whether you're in or out at the time that our board is making the board approved decision to begin construction.
Construction.
So we said, okay, we'll do that we would like to.
Make the payments as you build combined.
And so.
We've reworked the agreement with Glencore. So when we say, yes, we then slowly start paying as they build the bites, we'll just do it with cash flow from operations. So we don't have to.
But getting our balance sheet to a place where we're ready to make that payment because when we say, yes, we'll just start doing with gaslog.
Okay perfect. Thank you I appreciate that.
Thank you once again should you have a question. Please press the star followed by Don on your telephone Keypad. Your next question comes from the line of Brian Macarthur from Raymond James. Please proceed.
Good morning, and thank you for taking my questions.
The first one and I apologize you may have said it I think you did cut out just on all call. You spent a lot of time talking about it and it could be significant but did you say, it's not in any of that guidance out to 2038 and if not.
Why is that do not feel you have some time horizon when this might come in.
Yeah, you're correct, we don't have it in the guidance at this point.
What we're waiting for is for them to really secure permits a.
Secure project financing on it that's typically.
Some of the the minimum standards that were looking for before we include anything into the guidance. So until that gets finalized and we have more of a definitive timeline, we want inclusion guidance.
Yeah.
Fair enough second question.
I was just looking through for your guidance this year of $75 to 90000 ounces in the footnote on the 125000 ounces that was done at 823 celebrated 390 Coffer did you use the same numbers.
Perfect guidance this year, because normally you've gone through one of the challenges.
This sector at moment, it's all these ceos with relative prices and maybe a second part just philosophically is that the right way we should be doing this as an industry any more of these geo is there should we just be focusing on free cash flow.
Uh huh.
I'll answer the latter part first I think we see the focus on free cash flow.
We're just trying to disclose thing.
Understandable industry way.
Free cash flow.
Yes, we ran the numbers currently at 1800 dollar.
Goals and that sort of is the mid point of our guidance range. So if gold prices stay here or go up that would be slightly fewer ounces than the midpoint of that range, having said that we have some even since we set that number we've had some phone calls from people who were not expecting.
Ounces from this year, we're going to get some some ounces so even with gold prices, where they are today.
I'll take the actual numbers.
Rich.
Great. Thanks, that's very helpful and my final question is just on the investments just why.
I understand we're averaging is because I think you know.
Sandbox with one place and associate but in those investments we have all of the convertible debt and you have a total of $258 million.
Yes.
There are the.
Put it this way you mean, a hot Madden and Bear Creek convertible to be main stop and then theres a little bit of share of which 17 million you sold seven is there anything else major in there that I'm missing here.
The things you just listed are over 90% of it.
Perfect. Thank you very much that's very helpful.
Thank you once again should you have a question. Please press the star followed with the one on your telephone keypad.
There are no further question at this time. Please proceed.
Alright, well. Thank you again, everyone for phoning in today's call and like always we'll be around and feel free to phone us at the office.
Further questions as they come up and hope everybody has a good day.
Thank you, ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may all disconnect.
Yeah.
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Okay.
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