Q2 2024 New Gold Inc Earnings Call
All lines have been placed on mute to prevent any background noise. Please be advised that today's conference call and webcast is being recorded after the Speakers' barks there will be a question and answer session. If you would like to ask a question. During this time seems your press star followed by the number one on your telephone keypad and if you would like to withdraw your requests.
<unk> Shaw: These press the star followed by the number two I would now like to hand, the conference over to <unk> Shaw Executive Vice President of strategy and business development. Please go ahead.
Shaw: Thank you Larry and good morning, everyone. We appreciate you joining us today for new Gold's second quarter 2024 earnings conference call and webcast.
Speaker Change: On the line today, we have Patrick <unk>, President and CEO and Keith Murphy. Our CFO. In addition, we also have Luke Buchanan Vice President of technical services, and John <unk>, Vice President of geology available for the question and answer the answer portion of the call.
Shaw: Should you wish to follow along with the webcast. Please sign in from our homepage at <unk> Dot com.
Speaker Change: Before the team begins the presentation I would like to direct your attention to our cautionary language related to forward looking statements found on slide two of the presentation.
Speaker Change: Today's commentary includes forward looking statements relating to new gold in this respect refer you to our detailed cautionary note regarding forward looking statements in the presentation.
Speaker Change: You are cautioned that actual results and future events could differ materially from those expressed or implied in forward looking statements slide two provides additional information and should be reviewed.
Shaw: We also refer you to the section entitled Risk factors in New Gold's latest Aif MD&A and other filings available on SEDAR, plus which set out certain material factors that could cause actual results to differ.
Shaw: In addition at the conclusion of the presentation. There are a number of endnotes that provide important information and should be in conjunction with the material presented I will now turn the call over to Pat's remarks.
Pat: Thanks <unk>.
Pat: Before discussing the quarter.
Pat: To take a moment to discuss last week's Evans when.
Pat: When we experience the fidelity of the rainy River mine.
Speaker Change: More specifically, we lost a colleague.
Speaker Change: Our thoughts continue to be with his family and friends.
Speaker Change: Every quarter, we go I will start by talking about safety.
Speaker Change: Doug about our courage to care future.
Speaker Change: We do this because I believe.
Doug: The key the key to consistent and disciplined production start with safe production.
Speaker Change: It starts with the colors to care for our colleagues.
Speaker Change: Looking out for one another.
Shaw: Stopping word if it's not safe and answering everyone goes on to their family and friends safely at the end of every shift.
Speaker Change: I've been proud of the ultra in safety performance by our <unk>.
Shaw: <unk> and.
Shaw: The commitment of all employees.
Shaw: We have been able to celebrate the awards and milestone together, but in the instance.
Shaw: We mourn together with the family friends and colleagues who have been impacted.
Shaw: This tragic.
Shaw: That's it.
Shaw: I will now talk about our second quarter.
Shaw: The second quarter's new gold deliver another quarter.
Shaw: As planned.
Speaker Change: During the quarter, our new Afton mine, one two separate award for having the lowest total recordable injury frequency rate in 2023.
Shaw: The first being the safest large on the <unk> mining. This represented by the BC Ministry of energy margins in low carbon innovation.
Shaw: And the second being the John T. Ryan original CTO word in mines and visa in Yukon presented by the Canadian Institute of mining.
Shaw: I am pleased to take a moment to recognize their accomplishments.
Speaker Change: Operationally, we deliver on the quarterly plan with Australia adherence to our Bushnell outlook release from February.
Shaw: You have to deliver a strong quarterly production result at low cost.
Shaw: Many of the river and made excellent progress on the planned waste stripping program and the open pit is well positioned to deliver on our increasing production profile for the second half of the year.
Shaw: On our first quarter call I know that we were one quarter away from securing the increase in production and cash flow expected in the second half of the year.
Shaw: I am pleased to see that annually, we entered the period with we do so having finished the first half of the year with.
Shaw: Cash flow positive.
Shaw: And with the company exiting the first half with women 24 free cash flow positive I am pleased to see that new golar as low entered a sustained free cash flow generation period.
Shaw: We also.
Shaw: We made excellent progress on key growth projects importantly, all key growth projects remain on track for our company.
Shaw: In the second half of the year.
Shaw: We made significant progress with our exploration effort at both operations in the second quarter.
Shaw: Throughout.
Shaw: The company provided a positive exploration update on.
Shaw: The team there also complete the exploration drift early in the quarter and immediately began advancing priority near mine targets.
Shaw: Now to rainy River exploration drilling continues to make meaningful progress from both surface and underground.
Shaw: Through the first half of 2024, the company has real approach towards it.
Shaw: 20000 meters at Trinity River, there's been various Io priority targets.
Shaw: We are anticipating providing an exploration update later in the third quarter.
Shaw: The company also achieve a number of corporate milestone in the quarter, we announced the publication of our 2023 years do report something the company has published annually since 2015.
Shaw: As well as our 2023 task force on climate related financial disclosure report.
Shaw: All reports are available on our website.
Shaw: As a last point I'm extremely pleased to underline that we successfully delivered a net positive transaction for shoulder by increasing our free cash flow interest in new afton to 81%.
Shaw: To sum up the.
Shaw: The second quarter in the first half of the year met expectations.
Shaw: And the company is well positioned to deliver on guidance and sustaining free cash flow generation going forward.
Shaw: With that I will turn the call over to Kate.
Shaw: <unk>.
Kate: Thank you Bob.
Kate: On slide six which has our operating highlights.
Kate: Q2 was another solid quarter with.
Shaw: We used approximately 69000 gold ounces and $13 6 million pounds up.
Shaw: Any river produced approximately 50300 gold ounces.
Shaw: While advancing waste strip.
Speaker Change: <unk> produced approximately 18300 gold ounces $13 6 million pounds of copper.
Shaw: This represented an 8% and 10% increasing gold and 13% increase in appropriate compared to Q2 2023 Ics on ore processing is ramping up.
Shaw: Consolidated all in sustaining costs for the quarter were $1381 per gold ounce on a byproduct basis in line with plan.
Shaw: We expect cost to trend lower in the second half of the year.
Shaw: At new Afton, all in sustaining cost for the quarter of negative $433 per gold ounce was significantly lower than the prior year period due to increased copper production and sales.
Shaw: At rainy river costs were higher compared to Q2 2023, but in line with plan and.
Shaw: They are expensive and lower in the second half.
Shaw: Production increases.
Shaw: Turning to our financial results on slide seven.
Shaw: Second quarter revenue was approximately $219 million.
Shaw: Q2 revenue was higher than the prior year quarter, primarily due to higher metal prices and higher copper production, partially offset by lower planned gold production.
Shaw: Cash generated from operations before working capital adjustments was $90 million a 14% decline.
Shaw: This is higher than the prior year period, primarily due to higher revenues and positive working capital adjustments.
Shaw: Company recorded net earnings of approximately $52 million or <unk> <unk> per share during Q2.
Shaw: The increase is primarily due to additional revenues, resulting higher metal prices and a net gain on the derecognize them of the new App and free cash flow obligations.
Shaw: In connection with the amended Ontario teachers agreement the liability related to the original agreement that was recorded at fair value was extinguished.
Shaw: Updated agreement did not constitute a financial liability for accounting purposes. It was accounted for the partial disposition of mining interests.
Shaw: Net impact of that for the $42 million.
Shaw: After adjusting for certain other charges net earnings was $17 million or <unk> <unk> per share compared to adjusted net earnings of $12 million in the second quarter of 2023.
Shaw: Our Q2 adjusted earnings include adjustments related to other gains and losses.
Shaw: Our total capital expenditures for the quarters were approximately $72 million with 32 million spent on sustaining capital and $41 million on growth capital.
Shaw: At rainy River total capital increased over the prior year period due to higher growth capital spent.
Shaw: Sustaining capital is primarily related to capitalized waste capital components tailings management and construction.
Shaw: Sustaining capital is trending lower as the proportion of waste tonnes of capitalized and a higher proportion remaining remains an operating costs with no net impact on ASIC.
Shaw: Growth capital is related to underground development at the underground mine continues to advance.
Shaw: At New Afton total capital decreased over the prior year period, due to both lower growth and sustaining capital stack.
Shaw: Sustaining capital is primarily related to tailings management and stabilization activities.
Shaw: Capital is primarily related to the <unk> underground development.
Shaw: At the end of Q2, we had cash on hand of 184 million with a liquidity position of 461 time.
Speaker Change: This is after increasing new goes effective free cashflow interesting, new afton to 81% for an upfront cash payment of 255 million financed with a $100 million from existing airplane from our existing revolving credit facility and net proceeds from a concurrent equity financing.
Shaw: We anticipate repaying the credit facility with free cash flow generated in the second half of 2024.
Shaw: So mark we remain in a very healthy financial position, all while continuing to invest in growth projects as.
Speaker Change: As we successfully executed on half one objectives. We have ended the sustaining period of free cash flow generation, and we are well positioned to leverage the iron metal price environment.
Speaker Change: Now I'll turn the call back to Pat to walk through our operating highlights.
Pat: Thanks Keith.
Pat: Starting with rainy River on slide nine.
Speaker Change: Whenever continues to perform well achieving another quarter in line with our plant.
Pat: On the mining front waste stripping was the photos during the quarter an increase of ASP from Q1.
Speaker Change: I'm pleased to mention that the open pit is a mix element position as we started the second half for the year.
Speaker Change: Waste stripping is expected to decline through the remainder of the year as we access greater quantities of grid order.
Speaker Change: In the underground mining exploration from the Intrapreneur zones continued as planned and the development 2 million zone is schedule for first ore from development in the second half of 2024.
Speaker Change: The middle performed very well.
Speaker Change: Progressing over 26000 tons per day, a 12% increase compared to the Q2 of last year.
Speaker Change: We continue to operate above the gold mill throughput rate of 24700 tonnes per day.
Speaker Change: The right side of this slide outlines our 2024 outlook as presented in February and the previously guidance between the first and the second half of the year. This information is still valid six month into the year.
Speaker Change: And well positioned to meet our guidance production and cost objective for 2024.
Speaker Change: We remain on track for second half production, representing approximately 60% of the funnel.
Speaker Change: Our annual production.
Speaker Change: Mostly due to the open pit mining sequence.
Shaw: We will continue to reclaim some lower grade stockpiled in jewelry, while we reduce our grid or in the open pit for later in the year.
Shaw: The strip ratio is to decrease in the second half of the year as planned.
Shaw: Which result in higher operating costs and lower sustaining capital. However, no other impact on ASIC, which will trend lower in the second half of the year with the gold production.
Shaw: Lateral development meters in the underground mine will continue to ramp up through the year as we access additional underground mining zone in more eddings become available.
Shaw: Slide 10 outlines the progress we have made on the roads.
Shaw: The underground means one remains on track with first ore from development in the second half of 2024.
Shaw: As previously mentioned the priority for 'twenty 'twenty four is to establish a primary ventilation circuit and excess multipolar mining zone.
Shaw: These two items will be key to ramping up mining rate to <unk> 5500 tonnes per day by 2027.
Shaw: The team at rainy River did an excellent job advancing underground lateral development.
Shaw: Underground development continued to increase quarter over quarter and I expect this trend to continue into two into Q3 and Q4.
Shaw: It is open and initial underground mining equipment is delivered.
Shaw: There is more renewal of five meter diameter.
Shaw: 420 meter long fresh areas come in in the second quarter.
Shaw: At the end of Q2, both the OEM is ventilation loop in the fresh area raise where approximately 50% complete in line with our plan.
Shaw: In addition, I am pleased to report that the construction of the input portal offering a second muni fee growth and decrease waste hauling distance will commence in few days early August.
Speaker Change: Turning now to new iPhone on slide 11.
Speaker Change: You often deliver to plan this.
Speaker Change: <unk> continued to deliver above industry on a tonnes per day and the seasonal ramp up as being going to plan, leading to a 34% increase in ton milled and a corresponding increase in gold and copper production compared to Q2 last year.
Speaker Change: The increased copper production is the primary driver of the reduced all in sustaining cost compared to the prior year period.
Speaker Change: Looking now at the information on the right side of this slide.
Speaker Change: Similar to rainy River the first of all deliver according to plan and we are trending in line with the other roadblock.
Speaker Change: We continue to transition from <unk> to C zone, and I expect to see a continued ramp up in Sudan mining rates throughout the year.
Speaker Change: We continue to expect the iron mill throughput in the second half to be partially offset by the lower feed grade due to the cave draw sequence lead into a fairly consistent quarterly gold and copper production profile.
Speaker Change: Flat.
Suzanne: Suzanne pro growth as shown on slide 12.
Suzanne: Commissioning of the Gyratory Crusher and conveyor system is on track for the second half of this year.
Speaker Change: This will eliminate all the requirement and the impact positively unfolds going forward.
Speaker Change: We are on schedule to complete the seasonal construction phase this year, which include the season, reaching adroit at reviews and commissioning of the gyratory crusher and conveying system.
Speaker Change: Lateral development continued to advance unplanned with over 80% of the development meters now complete.
Speaker Change: I am very pleased with the progress the team has made and seize on development is no longer a critical path item.
Speaker Change: The seasonal and commissioning.
Speaker Change: These two milestones will be transformative for new afton, increasing production and decreasing cost to generate meaningful cash flow.
Speaker Change: Just to sum up operationally, we deliver our first of our stock.
Speaker Change: We will continue to deliver on our stated strategic goals.
Speaker Change: Fortunately don't move forward. These include delivering on production and cost guidance.
Speaker Change: We have now delivered eight consecutive quarters to plan.
Speaker Change: As I've said before same production technical excellence and operational discipline in our new roles keys to ensuring consistent quarter over quarter results.
Speaker Change: Exploration continues to advance on both side and we'll share those results with you in the coming months.
Speaker Change: We continue to focus on both extending our mine lives and inspiring new prospective targets to achieve our strategic objective of ours.
Speaker Change: Certainly the operational platform of approximately 600000 gold equivalent ounces per year.
Speaker Change: We deliver an accretive transaction for our shareholders by increasing our free cash flow interest and you ask them to 81%.
Speaker Change: At New Afton, we will achieve commercial operation at <unk> and commissioning of the crusher and conveyor.
Speaker Change: At rainy River, we will establish a into this <unk> system and the second mean of <unk> growth, while continuing to preparing the mining inventory leading up to first oil from main zone development. This year.
Speaker Change: We exited the first half of the year free cash flow positive.
Speaker Change: The free cash flow inflection point behind us.
Speaker Change: We have no inventory of our system cash generation period.
Speaker Change: This continued to be a transformative year for our company and our shareholders and we look forward to providing more positive updates on our third quarter call. Later this fall.
Speaker Change: This completes our presentation and I will now turn it back to the operator for the Q&A portion of the call.
Speaker Change: Thank you and ladies and gentlemen, we will now begin the question and answer session. If you will.
Speaker Change: Like to ask a question at this time. Please press the star followed by the number one on your telephone keypad.
Speaker Change: Speak their phone please speak up your handset before pressing any Keith did withdraw your question. Please press the star followed by the number of Q1.
Speaker Change: First question.
Eric <unk>: And your first question comes from the line of Eric <unk> with no.
Speaker Change: With Scotiabank. Please go ahead.
Eric <unk>: Hi, Patrick and team I appreciate you taking my question.
Speaker Change: Maybe just.
Speaker Change: Quick question here on new Afton mine.
Speaker Change: Mining cost per tonne was down over Q1.
Speaker Change: Any additional commentary there in terms of one time items that might have caused that or how are you thinking about the mining costs here throughout the year obviously.
Speaker Change: It sort of stabilize these lower levels as the cave ramps up.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: As we continue to increase the throughput at new Afton <unk> online.
Speaker Change: Will decrease our cost per ton.
Speaker Change: A lot of fixed cost at new Afton.
Speaker Change: Well leverage that increase your book so <unk>.
Speaker Change: As we continue to increase throughput that that cost become more convenient.
Speaker Change: Okay, great. Thank you very much.
Speaker Change: And just turning to rainy river for a moment, obviously and the shutdown last week.
Speaker Change: My condolences.
Speaker Change: On the fatality there.
Speaker Change: Sort of a broader read throughs, we should think in terms of pit stability or any other issues in the open pit at rainy.
Speaker Change: Yeah. Thanks for your question so.
Speaker Change: So it was not an easy week for us.
Speaker Change: And then I know, it's nothing compared to the family about this remains an ongoing in distribution and in respect of the process.
Speaker Change: All of them go or not go into the specific details of the incident. So what I can confirm to you <unk>.
Speaker Change: This is not related to slow.
Speaker Change: So it wasn't related incident with a piece of equipment. So it was equipment that was loading approach. So we have noticed the annuity concerned no dugo technical issues.
Speaker Change: Nothing in regards to India.
Speaker Change: The infrastructure of the paper or whatever so.
Speaker Change: If I can the ring fence the incident that through to the operation of the equipment.
Speaker Change: Alright.
Speaker Change: Thank you very much for that.
Speaker Change: An easy situation.
Speaker Change: And then so obviously sort of a week of downtime is that.
Speaker Change: What we should expect here in.
Speaker Change: Operations have resumed more or less.
Speaker Change: But we are first we are.
Speaker Change: We started the operation when the incident up in the morning of Wednesday.
Speaker Change: So and we start.
Speaker Change: Saturday, So basically we stopped.
Speaker Change: Let's talk mostly over three days.
Speaker Change: And we are.
Speaker Change: So as we ramp up vessels smoothly.
Speaker Change: Smoothly on the Saturday or the operations, so, but we are on track to deliver guidance. So most of the year three or four days is the range that we can absorb.
Speaker Change: To deliver in the range of our guidance for 2024, So we're not we're not impacted for this.
Speaker Change: We just took.
Speaker Change: The appropriate time to two.
Speaker Change: To do the first that will see the together the data for the investigation.
Speaker Change: And.
Speaker Change: It will be.
Speaker Change: And so we're always doing an investigation and in something like this or no matter. The incident that we are facing in auto that we're doing in other ways. So it was important for US together all the data we collaborate with the minister of mines, the Chief Inspector and also we are and we are doing the investigation in partnership with our with our employees and of our team.
Speaker Change: So in the time together all this two sorted out and to care for the <unk>.
Speaker Change: We started the operation with our people. So we mostly have lost three days, but I'm not seeing that as a licensing that is a care for my colleague.
Speaker Change: So absolutely no I really appreciate the added commentary. Thank you very much I'll hop back in the queue.
Speaker Change: And your next question comes from the line of Anita Soni with CIBC World markets. Please go ahead.
Anita Soni: Alright, Thanks Arnie.
Speaker Change: We can hear any more questions.
Speaker Change: Yes.
Speaker Change: Keeping yourself on mute.
Speaker Change: Sorry about that.
Speaker Change: Firstly my condolences on the loss of life.
Speaker Change: New Afton, sorry at rainy River.
Speaker Change: And then my question.
Speaker Change: Start with the Capex at New Afton. It seems that you are a little understanding narrow relative to the guide that.
Speaker Change: As a result of cost savings or are you just.
Speaker Change: A little bit behind on Lucerne will that catch up in the back half of the year I think.
Speaker Change: But more like 130 to $1 45 for growth capital and you guys are kind of average memorial sub 100000 shopper.
Speaker Change: As many of our return to too so good morning, and it was related to two items. So the first are those where we have a bit of let's say offset that quarter to quarter for the delivery of the equipment for the exploration zone in the area in Lear the crushers.
Speaker Change: Any impact on our operation as we are using the previous equipment territories or equipment delivery and the other one the other item is mislead because we are really proud of the fact that.
Speaker Change: The one with the team here are working very hard to optimize that asset value. So.
Speaker Change: So we invest a lot of time and effort to optimize the development, we are performing better on development.
Speaker Change: So and we delayed some openings for next year, so a slight adjustment because it's only this is good with good management and the planning of the development on the timely matter redo the number of contractors to increasing and decreasing our cost and improving our productivity. So this is mainly the two reason why.
Speaker Change: On the concessions.
Speaker Change: <unk> point of view and a capex point of view, we slightly delayed but we will deliver we will have to spend this money in a timely manner.
Speaker Change: Okay. So just a couple.
Speaker Change: From a quarter to quarter to quarter to a call on a quarter, but it's not it's not a it's not an extra expense is just it's not an.
Speaker Change: Performance, it's a it's a great performance.
Speaker Change: So a little bit of.
Speaker Change: Better unit cost optimization, a little bit of deferral and a little bit of catch up spending in the back half does that yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Alright, and then that absolutely. Thank you. Our next question both of the.
Speaker Change: Both new Afton and rainy river outperform not just on the mining cockpit on all of the unit cost is that.
Speaker Change: Was that something that was just a one time thing or is that better.
Speaker Change: Good optimization on behalf of the Johan and his team.
Speaker Change: Yeah, I think first I can say to you that we are is.
Speaker Change: Because you want it really is is that when you reverse this is why I'm thinking as part of the call is taking care of our colleagues there, but it's really really proud of this achievement that rainy river because.
Speaker Change: On a total cost point of view, we mined more tonnes for less money. So we are we are at a point that we optimize the open pit. We are we fully maximize the fact that we are not using the word dumped anymore. Because we are doing entered dumping for waste reduce haulage distance optimize the drilling and the <unk> thing. So we have a new mine manager in place.
Speaker Change: What is important is caliber is a big part with his team.
Speaker Change: The big part of this success to the team.
Speaker Change: But we improved drastically the productivity in the pit so we mined more tonnes for less money. So we are really pleased by this really please.
Speaker Change: And.
Speaker Change: And before for rainy River, New Afton as I said to you, we managed really well our performance.
Speaker Change: So we are pushing really hard to deliver our crushing in the material and Lindbergh in advance. So we are in advance I surely on the schedule and the data that we will start it up it will reduce hours will reduce our opex because we will eliminate all the trucking because were tracking up all of the material from C zone to the mineral Pfizer.
Speaker Change: So we know how to do that anymore. So in terms of manpower operation equipment maintenance of the equipment it will be.
Speaker Change: Limited gain for us.
Speaker Change: Alright, and Thats it.
Speaker Change: My question, congratulations on achieving a positive free cash flow.
Speaker Change: Ill get back into queue. Thank you.
Speaker Change: Okay. Thank you.
Speaker Change: And your next question comes from the line of Jamie Hoi with Canaccord. Please go ahead.
Speaker Change: Alright.
Jamie Hoi: Thanks for taking my question condolences for your colleague at rainy River.
Jamie Hoi:
Speaker Change: I'll touch on the ramp up new asking.
Speaker Change: When we were there back in May.
Speaker Change: The progress of the project was going quite well I think you had four draw bells completed and where we're looking to complete at a rate of about four per months, so with hydraulic radius being 18, we're looking at achieving that potentially.
Speaker Change: August or September I believe.
Speaker Change: Could you guys give a bit more detail on.
Speaker Change: When do you expect to achieve acres, because things seem to be moving at a quite a good pace.
Speaker Change: Yes so.
Speaker Change: For these really egregious.
Speaker Change: Actually on the on the.
Speaker Change: Because we have experience with <unk> is the fourth one.
Speaker Change: In theory, we need to achieve to have 18 draw bells.
Speaker Change: Theyre loving and function to reach these are the creators and luxury we're trending toward the beginning of Q4. So we're doing well in that we are still trending throughout to redraw build for year end.
Speaker Change: And so as we discussed and we are on plan. So we're trending.
Speaker Change: You can start the cave by itself up 17, it can start with 21, so it's not a it's not an exact science, but actually we're trending toward the beginning of Q4, so really pleased by this because.
Speaker Change: And also for the conveyor system.
Speaker Change: The crusher.
Speaker Change: So I think that we present, some a picture of the year.
Speaker Change: We're fixing the bottom part of the observatory closer it's a picture of that so actually of mental and despite her or probably in place.
Speaker Change: So it's worth looking more so were mostly.
Speaker Change: Look at the end of Q4, we're looking at Q4, so it's a it's where it's excellent for us doing well.
Speaker Change: Okay. That's that's great to hear and my next question was going to be on the conveyor and the crusher. So I appreciate the detail there as well.
Speaker Change: It for me.
Speaker Change: So we are installing the allowance build this week so basically the year Brent is in place under them. So I think that we will quality sorted out shortly so the next item on <unk> infrastructure and controlling the caution of infrastructure will be the crushers. So this will be the focus.
Speaker Change: From the following weeks up to the mid November. So we are really well positioned and that goes into the good job. You did also a safe job. So so it was well there with them on Sunday and nothing to add there.
Speaker Change: Perfect.
Speaker Change: Okay, great. Thanks for the additional color.
Speaker Change: And your next question comes from the line of Mike Parkin Wedbush <unk> Bank. Please go ahead.
Mike Parkin: Hi, guys. All my questions have been answered so thank you.
Speaker Change: Thank you <unk>.
Speaker Change: And there are no further questions at this time I'd like to turn it back to Ankur Shah for closing remarks.
Ankur Shah: Thank you, Larry and to everyone, who joined US today. Thanks again as always should you have any additional questions. Please do not hesitate to reach out to us by phone or email have a great rest of your summer.
Speaker Change: Thank you presenters, ladies and gentlemen, this concludes today's conference call. Thank you all.
Speaker Change: For participating you may now disconnect.