Q1 2024 Pan American Silver Corp Earnings Call
Okay.
Speaker Change: Good morning, ladies and gentlemen, and welcome to the Pan American Silver first quarter 2024, Unaudited results conference call and webcast. At this time on lines are in a listen only mode. Following the presentation, we will conduct a question and answer.
Speaker Change: <unk>.
If at any time during this call you require immediate assistance. Please press star zero for the operator.
Speaker Change: Also note that this call is being recorded on Thursday may nine 2024, and I would like to turn the conference over to surrounds the psyche VP Investor Relations. Please go ahead.
Speaker Change: Thank you for joining us today for Pan American Silver's Q1, 2024 conference call. This call includes forward looking statements and information and makes reference to non-GAAP measures. Please see the cautionary statements in our MD&A news release and presentation slides for our Q1 2024.
Speaker Change: Unaudited results.
Speaker Change: All of which are available on our website.
Speaker Change: I'll now turn the call over to Michael Steinmann Pan American's, President and CEO.
Michael Steinmann: Thank you Ron and thank you everyone for joining us today.
Michael Steinmann: Our Q1 operating results were in line or better than expected.
Michael Steinmann: Silver and gold production were within our guided ranges and I am, particularly pleased with our strong performance on controlling costs.
Michael Steinmann: Cash costs and all in sustaining costs, excluding net realizable value inventory adjustments for both silver and gold segments were lower than our quarterly guidance.
Michael Steinmann: Operations generated $133 $2 million of cash flow before working capital changes in Q1.
Michael Steinmann: This includes $41 $1 million in cash taxes paid.
Michael Steinmann: Q1, typically being the quarter with the highest cash tax payments.
Michael Steinmann: We recorded a $38 million net loss or a loss per share in Q1, which includes $34 4 million tax expense of which $15 2 million dollar is related to an inflation adjustment in Argentina.
Michael Steinmann: $14 4 million of Smiths realizable value inventory expense.
Michael Steinmann: A $10 $8 million noncash investment loss.
Michael Steinmann: Due to the decrease of the new Pacific Metals Corp share price.
Michael Steinmann: Adjusted earnings were $4 $7 million or one cents per share.
Michael Steinmann: We exited Q1 in a strong financial position cash and investments.
Michael Steinmann: $331 $4 million and we have the full $750 million available under our Undrawn credit facility.
Michael Steinmann: Total available liquidity is $1 $1 billion.
Michael Steinmann: This strong financial position allowed us to return $58 million of capital to shareholders in Q1.
Michael Steinmann: $36 5 million in total cash dividends paid.
Michael Steinmann: $21 5 million in share buybacks.
Michael Steinmann: Following the approval of our share buyback program on March 4th 2024, we have repurchased approximately one 7 million shares at an average price of $14 16 per share for cancellation.
Michael Steinmann: Inclusive of shares that settled in April.
Michael Steinmann: We intend to continue to take an opportunistic approach to future share buybacks.
Michael Steinmann: We maintained the dividend announcing yesterday, a cash dividend of 10 cents per common shares.
Michael Steinmann: In addition to maintaining a robust shareholder returns framework.
Michael Steinmann: First thing in our operations for safe and efficient improvements in performance.
Michael Steinmann: Operations performed largely in line with expectations.
Michael Steinmann: The Dolores was weaker than expected due to lower grades some heavy rains that required us to reduce irrigation rates, resulting in a lower ratio of ounces recovered two ounces stacked.
Michael Steinmann: And the readjustments at Dolores also increased all in sustaining costs by $838 per ounce.
Michael Steinmann: Excluding and there'll be adjustments Dolores all in sustaining costs were $1529 per ounce.
Michael Steinmann: The black letter that the new ventilation infrastructure is on track for completion in mid 2024.
Michael Steinmann: We expect this will lead to significant improvement and the ventilation conditions in the mine.
Michael Steinmann: It will allow us to accelerate the development rates by opening more areas for production.
Michael Steinmann: This is expected to lead to higher mining rates.
Michael Steinmann: Turning to approximately 2000 tonnes per day by the end of the year from the roughly 1300 to 1400 tonnes per day rate currently.
Michael Steinmann: There are also advancing the <unk> project on April seven 2024, we announced additional drill results from our ongoing exploration program at the Con.
Michael Steinmann: These drill results returned some of the highest grade intercepts to date.
Michael Steinmann: Including a stunning 22 five meters at 1435 grams per ton silver 31, 9% lead and 25% zinc.
Michael Steinmann: This will provide an updated mineral resource estimate for this con in August together with our mid year corporate mineral reserve and resource report.
Michael Steinmann: We continue to engage in discussions with parties, who have expressed an interest in a potential partnership and as corn.
Michael Steinmann: Ideally, we'd like to structure partnerships that will enable us to retain exposure to the silver with an estimated annual production of $17 2 million ounces in the first 10 years.
Michael Steinmann: And the partner would retain exposure to the St.
Michael Steinmann: We're also excited by the potential at Jacobina.
Michael Steinmann: The study is underway to evaluate alternative mining methods and upgrades to the processing facilities.
Michael Steinmann: The aim is to identify opportunities to optimize the long term economics of the mine.
Michael Steinmann: But you asked about mine in Guatemala, The Ilo 169 consultation process has experienced delay since the new government took office in January 2024.
Michael Steinmann: During meetings held in Q1 2024 between Pan American the Ministry of Energy and mines are men and other institutions. The government confirmed its commitment to completing the ESCO ball Ilo 169 consultation process that has not provided an update on the timeline.
Michael Steinmann: On April 29, 2024 demand released device Minister of sustainable development, who was responsible for overseeing and coordinating the basketball Ilo 169 consultation process.
Speaker Change: Demand has not yet designated a replacement for this post.
Michael Steinmann: On May one 2024, we announced that we have agreed to sell the La Arena Gold mine, that's far less tolerant to project in Peru, the subsidiary of <unk>.
Michael Steinmann: In mining group.
Michael Steinmann: The terms of the agreement have closings that change will pay $245 million in cash and will grant Pan American a life of mine gold net smelter return royalty of one 5% for Teradata and how to approach that.
Michael Steinmann: Additionally, upon commencement of commercial production from the <unk> project. The agreement provides for an additional payment from <unk> Chen of $50 million in cash.
Michael Steinmann: We expect a lot of them that transaction to close in Q3 pending satisfaction of the customary conditions and regulatory approvals.
Michael Steinmann: The divestment is aligned with our commitment after the amount of transaction to divest properties that are.
Michael Steinmann: Not aligned with our long term strategy, while strengthening our financial position to invest in high quality growth opportunities reduce debt and to return capital to our shareholders.
Michael Steinmann: Do you expect to close after a lot of in that transaction, we will have generated $837 million and cash from asset sales following the acquisition of Yamana.
Michael Steinmann: We will have retained for high quality royalties with industry, leading partners as well as contingent payments of $50 million.
Michael Steinmann: Last but not least the divestments also expect to reduce our animal care and maintenance costs by over $17 million.
Michael Steinmann: In closing Pan-american delivered strong performance in Q1, and we are on track to achieve our operating outlook for the year, we expect free cash flow to increase through 2024, particularly in the second half of the year based on our review of higher production and lower cost weighted towards the second half of 2024.
Michael Steinmann: And supportive metal prices.
Michael Steinmann: Look forward to providing our customary mid year update on our mineral reserves and resources in August.
Speaker Change: And with that I would like to open the call for questions.
Speaker Change: Thank you, ladies and gentlemen, if you would like to ask a question at this time. Please press star followed by one on your Touchtone phone you will then hear a three pronged acknowledging your request and if you would like to withdraw from the question queue simply press Star followed by two and also if using a speaker phone. We ask that you. Please lift your handset.
Speaker Change: Before pressing Andy Keys. Please go ahead and press Star one now if you have a question.
Speaker Change: And your first question will be from <unk> Habib at Scotia Bank. Please go ahead.
Habib: Thank you operator, good morning, Michael and Pan American team are really congrats to a strong start to the year.
Habib: Just a couple of questions from me.
Habib: Just starting off.
Habib: Just had a great start to our quarter as costs, both silver and gold segment outperformed the quarterly guidance that was provided.
Habib: At the silver segment, particularly total cash cost and <unk> is down 34, and 40%, respectively that's quarter over quarter.
Speaker Change: Could you please give us or help us understand what are the drivers here.
Speaker Change: Are you seeing these declining gross cost pressures across the board maybe some color there Michael.
Michael Steinmann: Yeah. When I said, we will start with that and then hand, it over to Steve to give us a bit more.
Michael Steinmann: Directly from from the operations.
Michael Steinmann: No.
Steve: It's like all of us and our costs when you look at it like this our costs net of byproduct credits. So one part is obviously our production.
Steve: Cost, which are the team did a great job on cost control here.
Steve: The second part.
Steve: Big impacts are.
Steve: Base metal prices on the silver side and then the gold segment.
Steve: Times starts a bit somewhere in it as well as a byproduct credit so when metal prices go up of course, that's that's a tailwind for us as well on the cost side and then the last one is I US dimension is our currencies, but we have a lot of expenses in local currencies and it always depends Budd as currencies trade so in.
Steve: Mexico right now very strong currency of course, that's a headwind to our cost.
Steve: In other places like for example, the Canadian dollar quite weak dollar right now of course that helps us on the cost side as we have reported in U S dollars.
Steve: Even though we are based in Canada, that's a foreign currency for us, but maybe Steve do you have some more detail I don't have a lot to add.
Steve: Oh it was.
Steve: The currencies did play a key role, particularly down in Argentina, we didn't quite see the.
Steve: Effective U S inflation quite I mean, it was still but heavy but it wasn't quite to the degree we anticipated in our planning.
Steve: <unk> in Chile was pretty good on the FX side.
Steve: I would say our consumables.
Steve: We're generally seen a little bit better usage lower usage of our consumables and what we had planned were.
Steve: We're still evaluating that so we don't want to change the year. The full year guidance are the future quarter guidance. We think those are still a valid guidance going forward, but we are looking at it we did see some reductions in usage is in Q1, and we're just not sure if that's or type related or not.
Steve: So you are not changing guidance, but there could be some possible upside in terms of.
Steve: Cost improvements.
Speaker Change: Yes, if you don't hold me to that.
Steve: If everything is the mansion stays the same as that and I think that's fair to say, yes, Oh, yes.
Speaker Change: Okay sounds good.
Speaker Change: And just in terms of selling of the noncore assets I mean, Michael you you and your team have done a fantastic job over the last a couple of months in terms of selling these assets.
Speaker Change: Or is there more to come.
Speaker Change: Any color that you can provide on some other assets that might be also be a non core that youre looking to sell down the road.
Michael Steinmann: Yeah, I really want to congratulate the team here on that that's amazing what to do for transactions and one year. After the big game on a transaction and really no selling some of those assets that are just really not core to us and I would say selling them for a good good price.
Michael Steinmann: The only good prospects for cash, mostly paas shanda and some royalties. So when you look at the quality of the royalties that we retained on each of them with very high quality mining bake large mining companies. That's a very valuable royalty portfolio that to me that we have in our ownership now.
Michael Steinmann: Again, so I'm very happy about that that will allow us to participate obviously in future increased metal prices.
Michael Steinmann: When that happens on dose those projects get developed.
Michael Steinmann: We still have we have a lot of ground a lot of exploration ground a lot of.
Michael Steinmann: Advanced exploration projects have let's say that that don't really fit that came in from from Yamana somebody asked before.
Michael Steinmann: I think in Argentina.
Michael Steinmann: We returned the coffee project. So there is a lot of smaller things.
Michael Steinmann:
Michael Steinmann: Not big dollar numbers, but it's you know it all takes time for management.
Michael Steinmann: And and cleaning that up and on streamlining the portfolio.
Michael Steinmann: Just as everybody way more focused on that.
Michael Steinmann: Helps helps a lot for the future. So we will continue.
Michael Steinmann: To go with a with a with a smaller assets from now on and still streamlined our portfolio, but at the moment like like large slots scales like we've seen last year.
Michael Steinmann: Tomorrow.
Michael Steinmann: And and a lot and that's off the world's those those were really the big ones that we wanted to divest.
Speaker Change: Okay. Thanks for that color Michael.
Speaker Change: But two questions on that for a while but maybe I'm going to come back into the queue.
Speaker Change: And that some other people ask some questions as well thank you.
Speaker Change: Okay. Thank you.
Speaker Change: Once again, ladies and gentlemen, please press star one if you have any questions.
Speaker Change: And your next question will be from Don Demarco of National Bank Financial. Please go ahead.
Don Demarco: Thank you operator, and good morning, Michael and team.
Don Demarco: I think I'll, just pick up where it makes left off I'll ask some questions unasked ball. So I see the Ilo presses has experienced some delays.
Don Demarco: I guess, we take it is encouraging that ma'am confirmed commitment to complete the process. The three questions here did they provide a timeline to complete.
Don Demarco: And is a replacement for that they can post required to get the process back on track.
Don Demarco: And is the next meeting scheduled at this point.
Speaker Change: Yeah Yeah.
Speaker Change: I'll start and I'll hand, it over afterwards to disarm mcaleer, who is running our affairs and in Guatemala.
Speaker Change:
Speaker Change: Sorry, I just lost my truck.
Speaker Change: The first question.
Speaker Change: Yes.
Sean McAleer: Well the timeline yes.
Sean McAleer: No as we said look does that transaction that trying to transition sorry Alastair.
Sean McAleer: With the new government took took really longer I think longer than expected.
Alastair: Yeah, you're right, it's encouraging I would say that the government is committed to.
Speaker Change: To complete the Ilo 169, now, but I also would like to remind everyone. That's a good that's a corridor that process.
Alastair: Process that.
Alastair: We all have to go through so you know.
Alastair: That's just part of the Ilo 169 that has ordered that it has to be finished I E.
Alastair: There's no choice video thanks.
Alastair: There's just no timeline to it so the process is very prescribed and are undergoing just working on it in the form of government with with good strides forward last year.
Alastair: They're slow down with the change of the government here.
Alastair:
Alastair: And as this up is this a vacant posts that in the past that was weighted a and another person that was running for the ministry of mines that process just to remind everyone. This is a process between ministry of mines.
Speaker Change: And then reaching the Singtel group and.
Speaker Change: And we are just a party to it.
Speaker Change: So we have no control over over timeline.
Speaker Change: Yeah. So the post was a very important in the past I cant speak for mom to see if in the future when there.
Speaker Change: Yeah.
Speaker Change: Reassign, a new person that's that will be the person in charge of the process are already it's Dave on the use and other person for the process and I think with that I'll hand, it over to Sean Sean you are way closer to it yeah, so not a lot to add Michael.
Speaker Change: We're.
Sean McAleer: Obviously waiting for the new appointment, there and that'll be key for us and we're in regular contact with with the government and then specifically to get updates, but theres no no updated timeline published timeline on the men with website was tentatively for March 31st and that's come and gone.
Sean McAleer: But we're hoping to hear some news in the next few weeks and months as things as things develop but unfortunately, we don't have any do you think that provide us an update and no future meeting dates.
Speaker Change: Oh, Okay. Thanks to that latter point, then, but what about some of the key issues that had been raised over the previous sessions I think there might have been some discussion on water maybe noise.
Speaker Change: Maybe others, what's the status of those the dialogue on those items at this point.
Speaker Change: Yeah and that was the meeting on February 21st there hasn't been any follow up and any working meetings around.
Speaker Change: Around those those concerns, but they're consistent with what we heard during the visits during the interactions that we had last year. So.
Speaker Change: Not a lot of new developments, there, but again that the dialogue in the processes.
Speaker Change: Waiting the mem to take charge and set the next meeting dates and at the time.
Speaker Change: Mine.
Speaker Change: Okay and are those issues or are others are are they viewed as a resolvable.
Speaker Change: I can see a path toward parties agreeing on whatever day whatever.
Speaker Change: Topics discussions might be underway at the last meeting.
Speaker Change: Yes, it's hard to say I mean.
Speaker Change: For Us I mean, we're just continuing the dialogue and when we sit at the table and discuss in more detail the issues.
Speaker Change: I feel confident that we've got the mitigation or other things we could do to alleviate the concerns but I think that's just part of the process until a wait and see how that develops.
Speaker Change: Okay, Great and maybe just one other question, Michael you mentioned Youre growing ROI at royalty portfolio.
Speaker Change: Perhaps you could share with us what are your intentions with this portfolio do you see it as a long term hold or would you potentially diagnostic on development in your pipeline.
Speaker Change: Yeah.
Michael Steinmann: Well if you recall last time, we created the sizeable royalty portfolio.
Michael Steinmann: That you know when I was in charge and business to business development before I ever see Oh.
Michael Steinmann: Generally most of those royalties, we spun those out into Mavericks at that point.
Michael Steinmann: No.
Michael Steinmann: Really a handsome return on.
Michael Steinmann: On those royalties through the sale of maverick's to Triple flag.
Michael Steinmann: Yeah.
Michael Steinmann: Mhm I think that has a lot changed since then in November they started that I think it was 2015 there were not many royalty companies I think theres.
Michael Steinmann: A large group of very strong royalty companies now ratable in the world.
Michael Steinmann: I'm pretty sure if we ever decide to sell this royalties, we will find very competitive bids from different companies. So there is now no need to basically start our own royalty company again, that's much my point I think if you decided to divest those royalties.
Michael Steinmann: We should we should you know for sure have enough offers from from very sizeable royalty companies here. So.
Michael Steinmann: You know, it's it's it's it's it's a big amount of potential cash sitting there for us.
Michael Steinmann: But at the moment I think we're not in no hurry to to divest those right away.
Speaker Change: Okay. Okay. Good to hear that's all for me and good luck with the rest of Q2. Thank you.
Speaker Change: Thank you Don.
Gary Shoes: Next question will be from Gary shoes at Cosmos. Please go ahead.
Speaker Change: Hi.
Gary Shoes: Cosmos here, but maybe I should call myself, Gary there would have been more successful.
Gary Shoes:
Gary Shoes: [laughter] well, maybe my first question is on <unk>.
Cosmos: La Colorado.
Cosmos: Michael and Steve.
Michael Steinmann: As you mentioned, it's almost complete.
Michael Steinmann: By mid 2024, we're almost there so could you maybe remind us in terms of what still needs to get done.
Michael Steinmann: And then Michael as you mentioned, one steam ventilation complete it.
Michael Steinmann: Throughput is going to go up since you're going to open up more mining areas.
Speaker Change: But is great I'll sort of go up as well.
Speaker Change: And if that's the case.
Speaker Change: Happened pretty much right away when.
Speaker Change: When the ventilation shaft is commissioned or is there going to be a lag like a month or two.
Speaker Change: Yeah, Thanks Cosmos, Steve here.
Speaker Change: Just you'd prefer.
Steve: Thank you John.
Steve: [laughter] yeah. Thank you just to give you an update on where we're at we are currently putting the ducting on for the fans. We got the main ducting the top of the shaft. The does the 90 degree all born we're starting to put the horizontal sections and we've got the basis poured we're starting to put the mechanical.
Steve: Equipment for the fans of the base spans and these are quite large fans. Each there's two of them. They're 2000 horsepower. Each so our intention is to have the first one operational by the start of Q3 and we're on track for that that looks really good there was a lot of effort a lot of logistical.
Steve: We'll expedite didn't going on particularly around some of the electrical components.
Steve: The <unk> and things like that so that's coming our way it looks good that's all coming together well in the meantime, we're we're laying out our plans for when we get that ventilation going we do know we've got rehabilitation works to do in the area of candle area Eastern the deeps, where you've got to get back in there and rehabilitate some of the.
Steve: Some of the ground control systems that were there that were eroded or damage through the years of this hot humid.
Steve: They're going through those areas. So we're starting to see some of that already because we do have a better flow of growing through the sheriff narrow. So it is getting us into that area, where you can see it there is a lot of rehabilitation work that has to be done. There is a lot of development work that we have to start advancing so as those that are.
Steve: It comes on we'll start advancing the development and you'll slowly see the tonnage is creep up our goal is to get back to the 2000 plus tons a day by year end, so it'll be a slow gradual increase from our kind of 13 1400 ton a day that we currently have.
Steve: In reality, we don't we're not forecasting a an increasing grade as that happens.
Steve: Q1 was a pretty decent grade I'd say, a 300 plus gram per ton, we might see a little bit of tweak upwards on that as we start that development work, but we do want to balance that again, what we do what we'd like to do is mine large Colorado had its reserve grade. So that's really our objective we're not.
Steve: Willing to go in and try to high grade.
Steve: Wanted to get the tonnage up and where you want to run a reserve grades in the steady state condition.
Steve: For as long as we can so that's kind of you know we stand behind our quarterly guidance of ramping that up that's a big driver to our increased production in the latter half of the year things are things are you know we have our challenges we got rehabilitation challenges we got that.
Steve: Development advanced challenges, but we're getting the ore there and things are looking good so were feeling good about the project and we're on schedule to get that fan running and start to suffer to start ramping the temperature.
Steve: That sounds great.
Speaker Change: Switching gears, a little bit Oh.
Speaker Change: I noticed that the grades has also improved in Q1 quarter over quarter, but a little bit.
Speaker Change: Gold went up three to four last quarter to three eight kind of same degree four where silver I know theres. Some theres been some issues in the past in terms of grades at alpine yield are we trending in the right direction I understand that you're drilling yet you're still waiting on some of the drilling results.
Speaker Change: Could you maybe comment on that.
Speaker Change: Well.
Speaker Change: Yes, hi.
Speaker Change: Cosmos Gary this.
Chris: This is Chris.
Chris: <unk>.
Chris: We've we've really hit.
Chris: Hit the ground running this year and last year, we had a we did have an issue with the drilling getting.
Chris: Getting unusual contract says it took a while to ramp up but certainly hit that hit Q1 running and.
Chris: We certainly see a lot of that drilling now coming into the information for the mid year reserve and resources update for <unk> opinion.
Chris: I would certainly like to believe that we would be keeping these grades and we view. This as you drill through these blocks you get some good results, but generally we're seeing that that reserve grade.
Chris: Panning out in India.
Chris: And the drilling.
Speaker Change: Like you say, there's going to be ebbs and flows as to how this turns out in that mid year update and we'll we're looking forward to updating everyone in August.
Speaker Change: Great. Thanks, and maybe one last question on the whole loan.
Chris: As you mentioned the dry stack tailings project is well underway and should be completed.
Speaker Change: In 2020 could you remind us in terms of the benefits of this dry stack tailing project.
Speaker Change: Is it.
Speaker Change: The extension of mine life.
Speaker Change: To be more sort of capacity in terms of tailings what are some of the key benefits.
Speaker Change: Yeah.
Speaker Change: Yeah cause more Steve here, Yeah, our tailings dam fiverr conventional tailings recurrent using will reach its ultimate capacity.
Steve: Kind of mid <unk> in Q1 of 2025 is the current schedule. So this is the next stage of tailings for the current reserves and life of mine that we see are on us.
Steve: Moving away from conventional tails gives us an ability to open up new areas for tailings depositions that are easier to manage that don't require quite the.
Speaker Change: Quite the extensive.
Speaker Change: Damn development and empowerment development. So it allows us to open up more areas that we need for the life of mine reserves and resources that we intend to mine that we're on so it's really just a shift from methodologies to something more robust and more capacity as we look into the future.
Speaker Change: Great. Thanks.
Speaker Change: Michael Steve Christian answered those are all the questions. Congrats on a very strong Q1.
Speaker Change: Thanks Kosta.
Speaker Change: Thank you.
Speaker Change: Once again, ladies and gentlemen, if you do have any questions. At this time. Please press star one on your Touchtone phone.
Speaker Change: And at this time, we have no questions registered please proceed.
Speaker Change: Yes, Thanks, Brian and thanks, everyone on the call today.
Speaker Change: A great quarter I think we delivered across our across the board were delivered on production cost on further divestment of assets as we indicated last year and I think that advanced.
Speaker Change: The very high speed up very good results on that and we returned.
Speaker Change: <unk> increased our returns to shareholders.
Speaker Change: So there was a combination of share buybacks.
Speaker Change: And dividends.
Speaker Change: <unk>.
Speaker Change: Strong balance sheet and there's a lot of very very positive and looking forward to this year in combination with what we see now at the moment.
Speaker Change: Way higher metal prices doesn't matter experience doesn't not average in Q1, so really looking forward to update everybody in.
Speaker Change: In August again, but just to remind everyone behalf hosting an investor day on June 18th. So please if we want to participate on our call in there, let us know reach out to IR at Pan American Silver Dot Com. Please under.
Speaker Change: Well.
Speaker Change: Well, we'll make sure that they can participate on call in to that Investor day, and if that if we don't speak dundon looking forward to talk in August when we discuss our Q2 results. Thank you everyone have a good weekend.
Speaker Change: Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
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