Q4 2024 Hudbay Minerals Inc Earnings Call
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Speaker Change: I would like to remind everyone that this conference call is being recorded today February 19, 2025 at 11, a M eastern time.
Speaker Change: I will now turn the conference over to Candace Brule, Vice President Investor Relations. Please go ahead.
Candace Brule: Thank you operator, good morning, and welcome to <unk> 2020 for fourth quarter results Conference call.
Candace Brule: <unk> financial results were issued this morning and are available on our website at www Dot <unk> dot com a corresponding Powerpoint presentation is available on the Investor event section of our website and we encourage you to refer to it during this call. Our presenter today is Peter Cahill ski had based president and Chief Executive.
Candace Brule: Accompanying Peter for the Q&A portion of the call will be Eugene Lee, Our Chief Financial Officer, and Andre Luzon, Our Chief operating officer.
Candace Brule: Please note that comments made on today's call may contain forward looking information and this information by its nature is subject to risks and uncertainties and as such actual results may differ materially from the music spreads today for.
Speaker Change: For further information on these risks and uncertainties. Please consult the company's relevant filings on SEDAR plus and Edgar. These documents are also available on our website. As a reminder, all amounts discussed on today's call are in U S dollars, unless otherwise noted and now I'll pass the call over to Peter could kill ski.
Speaker Change: Thank you Candice good morning, everyone and thank you for joining us for today's call.
Peter Kudulski: I'll start by saying we had another incredible year in 2024, it was a year of execution as we delivered record financial performance and fully transformed our balance sheet.
Peter Kudulski: Proudly achieved consolidated production guidance for all metals with gold production significantly exceeding the top end of the guidance range and we outperformed our twice improved consolidated cash cost guidance demonstrating industry, leading cost performance.
Peter Kudulski: These strong operating results enabled us to achieve a record revenues of more than $2 billion and record free cash flow generation of more than $350 million in 2024.
Peter Kudulski: This was driven by our enhanced and diversified operating platform, where we continue to demonstrate operational excellence and disciplined capital allocation.
Peter Kudulski: Our Peru operations delivered steady copper production and better than expected gold production in 2024 as mill throughput continued to exceed design capacity and we took advantage of the recent government initiative to allow mining companies to operate above permitted throughput levels.
Peter Kudulski: Upper Concho also continued to contribute high grade copper and gold all in.
Peter Kudulski: In addition, the team is advancing studies on future opportunities to further increase mill throughput in Peru.
Peter Kudulski: Our Manitoba operations achieved record annual gold production, increasing by 14% from 2023 and exceeding the top end of our production guidance range I am very proud of the team's continuous improvement efforts, which resulted in an impressive cost performance that significantly exceeded.
Peter Kudulski: Our expectations.
Peter Kudulski: This success was in part due to the contribution from the new Britannia Mill, which was refurbished in 2021, and we continue to deliver high returns from this brownfield investment project.
Peter Kudulski: British Columbia operations have enhanced our operating platform with 2020 for being the first full year of having a third operating asset.
Peter Kudulski: We continued our stabilization and optimization efforts in 2024, including increasing mining activities and our focus for 2025 will be on mill optimization initiatives to enhance mill throughput.
Peter Kudulski: As a result of the free cash flow generation from the enhanced business plus the proceeds from the successful equity offering we completed in May we have proudly reduced net debt by more than $500 million in 2024.
Peter Kudulski: We have transformed our balance sheet to now be in the lowest leverage position of our peers a significant change from one of the highest leverage positions more than a year ago.
Peter Kudulski: We are in the best financial position, we have ever been in to prudently deliver our attractive pipeline of growth opportunities and this is timely as our copperweld project in Arizona has received the final key permits and we are now advancing the project through feasibility studies and the minority joint venture partner process.
Peter Kudulski: I'll go into more detail on our recent for achievement throughout today's presentation, along with our outlook for 2025, and our plans for advancing many exciting growth initiatives to continue to unlock value for all stakeholders.
Peter Kudulski: Turning to slide four the fourth quarter of 2024 had strong production and operating cost performance across the business.
Peter Kudulski: Consolidated copper production was 43000 tons in the quarter, an increase of 38% compared to the third quarter and in line with quarterly production cadence expectations.
Peter Kudulski: Consolidated gold production was 94000 ounces, which significantly exceeded our expectations for the quarter and increased 6% from the strong levels achieved in the prior quarter.
Peter Kudulski: This was primarily due to higher grades in Peru, and continued strong gold production in Manitoba as a result, we achieved a consolidated full year production guidance for all metals and significantly exceeded the top end of our production guidance range for gold.
Peter Kudulski: We had another quarter of industry, leading cost performance with consolidated cash costs of 45 cents per pound of copper and sustaining cash cost of one dollar and 37 cents per pound.
Peter Kudulski: While the majority of our revenues continued to be from copper.
Peter Kudulski: Copper and gold diversification adds further cash flow resiliency and strong leverage to higher metal prices.
Peter Kudulski: As seen through the increasing portion of our revenues from gold.
Peter Kudulski: <unk>, 35% of total revenues in 2024 compared to 29% in 2023.
Peter Kudulski: Fourth quarter, adjusted EBITDA was $257 million or 25% increase compared to the prior quarter, resulting in full year 2024, adjusted EBITDA of $823 million, a substantial increase from eight $648 million a year ago.
Peter Kudulski: Adjusted net earnings was 18 cents per share in the fourth quarter, a 40% increase compared to the third quarter.
Peter Kudulski: Our financial results would have been even higher if excess copper concentrate in Peru was sold in the quarter as a result of the strong ramp up of production during the quarter. They remained approximately 30000 tons of copper concentrate inventory at the end of December compared to the typical levels of 15000 tonnes. The.
Peter Kudulski: Excess copper concentrate is expected to be sold in the first quarter of 2025.
Peter Kudulski: Slide five highlights our efforts to transform our balance sheet in 2024, which has positioned us as the lowest Levered company in our peer group as I mentioned.
Peter Kudulski: We ended the year with $582 million in cash and cash equivalents, an increase of $332 million over the course of 'twenty 'twenty four due to a successful equity offering and record free cash flow is bolstered by strong copper and gold prices.
Peter Kudulski: HUD Bay has successfully delivered six consecutive quarters of meaningful free cash flow generation as a result of recent brownfield investments continuous operational improvement efforts and steady cost control across the business.
Peter Kudulski: We used part of the equity offering use of proceeds and the free cash flow generation to make $245 million of debt repayments during the year.
Peter Kudulski: This included repurchasing and retiring a total of $83 million of senior unsecured notes as well as completing the repayment of $100 million on the revolving credit facilities.
Peter Kudulski: Also fully repaid the gold prepay facility with $62 million in gold deliveries during 2024.
Peter Kudulski: As a result, we have reduced our net debt by over $500 million in 2024 and as of December 31st we have $526 million of Mezz debt.
Peter Kudulski: The net debt reduction together with higher levels of adjusted EBITDA over the last 12 months has significantly improved our net debt to adjusted EBITDA ratio at two 0.6 times in comparison to a ratio of one six times at the end of 2023 and over two times at the end of 2022.
Peter Kudulski: In addition to these efforts in November we took further action to improve balance sheet resilience and financial flexibility by proactively extending our senior secured revolving credit facilities from October 2025 to November 2028.
Peter Kudulski: This provides increased financial flexibility to accretively maintain our four 5% coupon bonds until maturity in 2026 and advanced copperweld towards a sanction decision in accordance with the three P plan.
Peter Kudulski: The newly extended $450 million revolving credit facility includes an improved pricing grid, reflecting the enhanced financial position of Hebei and features an opportunity to increase the facility by an additional $150 million at our discretion, providing additional financial flexibility.
Peter Kudulski: Looking at our Peru operations on slide six in the fourth quarter. We produced 34000 tons of copper 38000 ounces of gold 970000 ounces of silver and 195 tons of molybdenum.
Peter Kudulski: Gold and silver production was significantly stronger than the third quarter as a result of higher grades from pump of Concho as the planned stripping program was successfully completed in the third quarter as well as a larger portion of all mill feed coming from public Concho.
Peter Kudulski: The strong fourth quarter in Peru resulted in the full year annual guidance ranges being achieved for all metals with the production of 99000 tonnes of copper and 98000 ounces of gold in 2024.
Peter Kudulski: Peru gold production exceeded the upper end of the guidance range by 6%, primarily a result of additional gold benches that remained in the pump Concha pit ahead of schedule and pulled forward from 2025.
Peter Kudulski: The Peru operations continued to benefit from the strong and consistent mill throughput, averaging approximately 87000 tonnes per day in the fourth quarter and full year of 2024.
Peter Kudulski: The mill achieved record copper recoveries of 88% in the fourth quarter higher than the previous record of 87% achieved in the fourth quarter of 2023.
Peter Kudulski: The root demonstrated strong cost performance and exceeded our expectations in the fourth quarter. As a result full year cash cost were $1.18 per pound in 2020 for outperforming the low end of our annual cost guidance range.
Peter Kudulski: Strong mill performance and focus on cost efficiencies has proudly positioned constancia has the lowest cost open pit copper, we continue to evaluate opportunities to further increase mill throughput in the coming years with the government regulatory allowance to exceed permitted levels by 10%.
Peter Kudulski: This opportunity has the potential to increase production volumes to partially offset grade declines following the depletion of pump a culture in late 2025 at seven highlights record year, we had in Manitoba.
Peter Kudulski: Our snow Lake operations delivered exceptional operating performance and continued to exceed expectations in both production and efficiency in the fourth quarter.
Peter Kudulski: We also proudly achieved a significant milestone in December with the production of a total of 1 million ounces of gold from the Lalor mine, reflecting the success of our strategy to maximize gold production from the Snow Lake operations.
Peter Kudulski: Record annual gold production of 214000 ounces was achieved in 2024 through a combination of higher metallurgical recoveries at the new Britannia install mills and the strategic allocation of more gold ore feed to the new Britannia mill.
Peter Kudulski: This success reflects the positive impact of ongoing continuous improvement initiatives across the entire business unit.
Peter Kudulski: Full year gold and copper production both exceeded the upper end of the 2020 full guidance ranges zinc.
Peter Kudulski: Zinc production was in line with guidance and silver production was at the top end of the guidance range.
Peter Kudulski: The Lalor mine achieved strong results, averaging 4600 tonnes per day in the fourth quarter, marking the highest quarterly oil production in 2024.
Peter Kudulski: This strong performance was driven by positive Mark fragmentation, stope availability and improved mobile equipment availability.
Peter Kudulski: The new Britannia mill had another quarter of exceptional performance with the mill operating consistently above nameplate capacity, achieving an average throughput of above 2000 tonnes per day in the fourth quarter.
Peter Kudulski: Collins availability remains strong supported by ongoing low capital projects aimed at further increasing throughput, while maintaining targeted gold recoveries of 90%.
Peter Kudulski: Yeah.
Peter Kudulski: At the stall base metal mill, we produced a similar quantity of all in the quarter compared to the prior.
Peter Kudulski: Annual processing declined by 7% year over year aligned with our strategy to allocate more lalor ore feed two new brittania to maximize gold recoveries.
Peter Kudulski: Manitoba gold cash costs was $607 per ounce in the fourth quarter and $606 per ounce for the full year.
Peter Kudulski: These costs remain better than expected as a result of continued operating efficiencies and focus on strong cost control, resulting in full year, Manitoba cash costs significantly outperforming the low end of the 2024 guidance range.
Peter Kudulski: Similarly, our sustaining cash costs remained stable throughout the year in Manitoba, averaging an impressive $868 per ounce in 2024.
Peter Kudulski: Our snow Lake operations are generating significant cash flows as operating costs remained stable and we benefit from expanding margins in the current high gold price environment.
Peter Kudulski: Slide eight ranks our operations against other large scale gold mines in Canada.
Peter Kudulski: At $868 per ounce and sustaining cash costs Snow Lake is the lowest cost gold mine in Canada, achieving margins of roughly 70% at current gold prices.
Peter Kudulski: Through our continuous improvement efforts focus on cost control efforts to maximize gold production and benefits from base metal byproduct diversification. We are proud to say that our snow Lake business was the highest margin gold operation in Canada in 2024.
Peter Kudulski: Moving to our third operating business units on slide nine.
Peter Kudulski: A British Colombia operations produced 6000 tons of copper $4 6000 ounces of gold and 59000 ounces of silver in the fourth quarter.
Peter Kudulski: Production in the quarter was impacted by lower mill throughput due to planned and unplanned maintenance shutdowns.
Peter Kudulski: Full year copper production was below the guidance range, primarily as a result of lower grades and stockpiled ore and lower throughput during the ramp up of stabilization and optimization efforts throughout the year.
Peter Kudulski: Full year gold production was in line with annual guidance.
Peter Kudulski: Since acquiring copper mountain in June 2023, we have been focused on advancing operational stabilization plans, including opening up the mine by reactivating the full mining fleet, adding additional hold trucks, adding additional mining faces optimizing the ore feed to the plant and implementing plant improvement initiatives.
Peter Kudulski: <unk> that mirror HUD based successful processes at Constancia.
Peter Kudulski: These stabilization plans have successfully increase the total tonnes moved and resulted in stronger mill performance as demonstrated by high mill availability of 92% and copper recoveries of 82% in 2024 compared to 85% and 80% respectively in 2023.
Peter Kudulski: The focus in the fourth quarter of 2024 was on mining efficiencies and operator recruitment to effectively utilize the available whole truck fleet.
Peter Kudulski: As a result total material moved is expected to continue to increase in 2025 as per the mine plan.
Peter Kudulski: As I mentioned earlier mill performance in the fourth quarter was impacted by the ramp up period, following the planned and unplanned maintenance shutdowns.
Peter Kudulski: In addition, elevated clay material impacted the secondary crushing circuit.
Peter Kudulski: Several initiatives, we are advancing in the quarter to address these issues.
Peter Kudulski: Full year cash cost in British Columbia, with $2.74 per pound and were above the high end of the annual cost guidance range due to lower copper production as mentioned.
Peter Kudulski: Progressive operational improvements are expected throughout 2025 mining.
Peter Kudulski: Mining activities will continue to execute the three year accelerated stripping program intended to bring higher grade ore into the mine plan.
Peter Kudulski: And in January we completed feasibility engineering to Debottleneck and increase the nominal plant capacity to its permitted capacity of 50000 tons per day earlier than contemplated in the technical report.
Peter Kudulski: We released our 2025 annual guidance with our 2024 results and our production guidance is summarized on slide 10.
Peter Kudulski: For 2025 consolidated copper production guidance midpoint of 133000 tons is expected to remain consistent with 2024 levels.
Peter Kudulski: This is a result of higher expected production in British Columbia as mill throughput optimization plans are implemented offset by a lower portion of ore feed from pump a country in Peru as it depletes this year.
Peter Kudulski: The 2025 consolidated gold production guidance midpoint of 278000 ounces reflects continued strong gold production in Manitoba offset by lower gold grades in Peru is high grade gold benches, where mind ahead of schedule in 2024 as well as the lower portion of ore feed from Pampa Concho in 2025.
Peter Kudulski: Specifically for Peru for 2025 copper production guidance midpoint is expected to be $88 5000 tonnes and gold production is expected to be $54 5000 ounces lower than 2024 levels is less mill ore feed will be coming from Pampa culture.
Peter Kudulski: As mentioned earlier additional high grade gold benches, reminding late 2024 and pulled forward from 2025.
The pumper pension deposit is now expected to be depleted in early December 2025, as opposed to October as the mine plan as smooth pampa country production throughout the year.
Peter Kudulski: Total mill ore feed from pump a country is expected to be approximately 25% in 2025 lower than the typical one third in prior years.
Peter Kudulski: In Manitoba, we expect to produce 200000 ounces of gold based on the midpoint of the 2025 guidance range. The impressive operating performance. We saw in 2024 is expected to continue into 2025, resulting in our updated 2025 gold production guidance to be 8% higher than the previous.
Peter Kudulski: The announced guidance of 185000 ounces.
Peter Kudulski: Zinc production for 2025 is expected to be 24000 tons, which is lower than 2024 production due to low grade base metals in the mining sequence at Lalor as we continued to prioritize the gold zones.
Peter Kudulski: In British Columbia, 2025, copper production is expected to be approximately 35000 tons based on the midpoint.
Peter Kudulski: This is a 31% increase from the 2024 levels as a result of mill throughput ramp up and higher grades in the second half of the year.
Peter Kudulski: This is a result of several mill initiatives, including the conversion of the third ball mill to a second Sag mill and higher grades from the accelerated stripping schedule.
Peter Kudulski: The mill throughput ramp up reflects the first half of 2025 at similar throughput levels seen in 2024 with a significant increase in the second half of 2025 concurrent with the completion of the second Sag Mill project ramping up towards 50000 tonnes per day in 2026.
Peter Kudulski: As shown on slide 11, consolidated copper cash cost in 2025 are expected to be within the 80 cents and one dollar per pound as we continue to focus on maintaining strong cost control across our operations to drive industry leading margins.
Peter Kudulski: Sustaining cash costs are expected to be within $2 25, and $2 65 per pound, reflecting slightly lower copper production lower byproduct credits and higher sustaining capital expenditures compared to 2024.
Peter Kudulski: In Peru, 2025 cash costs are expected to be between $1 35 to $1.65 per pound as continued strong cost control offset lower production and byproduct credits compared to 2024.
Peter Kudulski: In Manitoba 2025 gold cash costs are expected to be between 650 and $850 per ounce remaining at industry low levels during strong margins at current gold prices.
Peter Kudulski: In British Columbia cash costs are expected to be between $2 45 and.
Peter Kudulski: And $3 45 per pound.
This is an increase from 2024 due to higher mining costs related to more material moved as we execute the planned accelerated stripping program and higher milling costs as we implement the mill improvement projects this year.
Peter Kudulski: Set by higher copper production.
Peter Kudulski: Our capital expenditures guidance is shown on slide 12.
Peter Kudulski: In 2020 for total capital spending was $10 million lower than guidance of $360 million is lower growth capital in certain sustaining capital deferrals with partially offset by higher sustaining capital in British Columbia.
Peter Kudulski: For 2025 total capital expenditures are expected to be $518 million.
Peter Kudulski: This increase reflects higher growth capital spending as we reinvest in several high return growth projects as well as higher sustaining capital at the operations, including some that was deferred from 2024.
Peter Kudulski: Peru's 2025, sustaining capital expenditures are expected to be $170 million with higher capitalized stripping and required mine equipment purchases along with some capital deferrals from 2024.
Peter Kudulski: Growth capital of $25 million in Peru is related to the installation of the pebble crusher to increase mill throughput starting in 2000, and 2026 and the other mill optimization initiatives.
Peter Kudulski: And in <unk> 2025, sustaining capital expenditures are expected to increase to $60 million, primarily the result of additional underground capitalized development costs.
Peter Kudulski: We also plan to spend $15 million of growth capital in 2025 for the exploration and haulage drifts at the 19, one deposit and a portion of the cost is being funded by a premium flow through financing that was completed in the fourth quarter.
Peter Kudulski: In British Columbia, 2025, sustaining capital is expected to remain consistent with 2024 at $50 million per mine and mill equipment capital.
Peter Kudulski: And we expect to spend $85 million on capitalized stripping costs related to the continued accelerated stripping program.
Peter Kudulski: Growth capital at copper mountain is expected to be $75 million in 2025, including $55 million for the conversion of the third ball mill to Secretary Sag mill to increase throughput rate starting in the second half of 2025 and ramping up to 50000 tons per day in 2026.
Peter Kudulski: At Copperweld in Arizona, we anticipate spending a total of $90 million in growth capital in 2025. This.
Peter Kudulski: This includes $25 million of typical annual holding cost and roughly $65 million related to derisking activities and definitive feasibility studies to advance the project towards a sanctioning decision in 2026.
Peter Kudulski: 2025 exploration expenditures are expected to total $40 million in line with 2020 for exploration spending as we continue to execute our multiyear extensive geophysics and drilling program in snow Lake to extend mine life and explore for new discoveries.
Peter Kudulski: Portion of the Snow Lake exploration program is being funded by a premium critical minerals flow through financing.
Peter Kudulski: Moving to slide 13, Hebei has a proven track record of prudently allocating capital to generate the highest risk adjusted returns as we execute our growth strategy and advanced our world class asset portfolio.
Peter Kudulski: As an example of this success, we completed a post project review of our capital investment in the New Britannia Mill refurbishment project.
Peter Kudulski: We acquired the new Britannia mill in 2015 for $12 million to potentially process high grade <unk> gold ores and allow us to achieve higher gold recoveries of approximately 90%.
Peter Kudulski: The refurbishment project construction had an initial capital cost of $115 million and an estimated IRR of 19% at the time of project sanction in early 2020 finish.
Peter Kudulski: The initial investment was funded by a $115 million low cost gold prepay facility.
Peter Kudulski: The project construction was completed on time with mill ramp up and commissioning achieved in late 2021.
Peter Kudulski: The mill was refurbished with a nameplate design capacity of 1500 tonnes per day and has been consistently exceeding performance expectations, reaching record throughput levels of over 2000 tonnes per day in 2024.
Peter Kudulski: Project payback was achieved after two five years and in August we completed the final payment under the gold prepay facility, increasing our exposure to the current high gold price environment.
Peter Kudulski: After three years in operations. It is estimated that the IRR for the new Britannia refurbishment project has increased to a remarkable 36% after adjusting for higher production rates stronger gold prices and higher capital and operating costs.
Peter Kudulski: In 2024, we received a permit to increase the production rates at new Britannia to 2500 tonnes per day.
Peter Kudulski: With over 2 million ounces of contained gold in current reserves and another $1 4 million ounces of gold in the inferred resources to <unk>.
Peter Kudulski: New Britannia investment has the potential to generate even higher returns that could be further enhanced by regional exploration upside and the current strong gold price environment.
Peter Kudulski: We expect to replicate the success through our disciplined capital allocation approach when reinvesting in brownfield growth projects, such as our mill throughput improvement projects in British Columbia and Peru.
Peter Kudulski: And we expect to generate attractive returns and unlock significant value through our copperweld project, which is shown on slide 14.
Peter Kudulski: Copperweld is the most advanced greenfield projects in our portfolio and offer significant copper exposure at highly attractive project economics.
Peter Kudulski: Copperweld as a standalone operation requiring state and local permits and is expected to produce 85000 tons of copper per year over the initial 20 year mine life in the first phase the.
Peter Kudulski: The project generates an NPV of $1 $1 billion and an after tax IRR of 19% at a copper price of $3 75 per pound.
Peter Kudulski: Copperweld as one of the highest grade open pit copper projects in the Americas with mineral reserves of 385 million tonnes at 0.54% copper as shown on slide 15.
<unk> is expected to be the fourth largest copper producer in the United States and its cost base compares favorably to current operating mines.
Peter Kudulski: Until production Copperweld is expected to be a meaningful copper producer in the U S domestic supply chain.
Peter Kudulski: The made in America copper cathode anticipates to be produced is expected to be sold entirely to domestic U S customers.
Peter Kudulski: Turning to slide 16, we have recently obtained all key permits needed for the development and operation of copper World.
Peter Kudulski: This includes the aquifer protection permit which was received in August and the air quality permit which was received in early January.
Peter Kudulski: With <unk> now fully permitted and with our transformed balance sheet and significantly improved financial flexibility, we are well positioned to prudently advanced copperweld in accordance with our <unk> plan.
Peter Kudulski: Once in production Copperweld is expected to increase our consolidated copper production by more than 50% from current levels.
Peter Kudulski: Our focus in 2025 will be on advancing feasibility studies with completion expected in the first half of 2026.
Peter Kudulski: Now that the permits have been received we have commenced a minority joint venture partner process. We have also expanded our team in the United States to build bench strength and to establish key leadership roles.
Peter Kudulski: This includes the recent hiring of a highly qualified project director and a seasoned mining law expert both of whom are significant assets as we advanced copperweld towards a sanctioning decision in 2026.
Peter Kudulski: We have several exploration opportunities as part of our long term growth pipeline, including many high priority exploration targets in snow Lake as noted on slide 17.
Peter Kudulski: In 2024, we began the largest exploration program in the company's history in Snow Lake with the goal of extending known mineralization near the Lalor deposit to further extend mine life as well as to find a new anchor deposit within tracking distance of the snow Lake processing infrastructure.
Peter Kudulski: To follow on this in 2025, we will be completing the largest geophysics program in <unk> history with plans to complete 800 kilometers of ground electromagnetic surveys and an extensive airborne geophysics survey.
Peter Kudulski: And Laura northwest follow up drilling in the second half of 2024 confirmed the potential for a new gold copper discovery located approximately 400 meters from the existing Lalor underground infrastructure.
Peter Kudulski: Several new intersections have helped establish the geometry of this new discovery and we plan to continue to drill lalor northwest in 2025.
Peter Kudulski: At the regional rail property, which was acquired through the rock Cliff acquisition in 2023.
Peter Kudulski: For 2024 program yielded new intersections of high grade copper gold mineralization.
These results will be combined with historical drilling results to update the geological model and assess its economic potential.
Peter Kudulski: Recent step out drilling at the 19, one deposit from the underground exploration drift targeted down plunge extensions of the ore body.
Peter Kudulski: All five holes that were drilled beyond the known extent of the mineralization have intersected visible copper gold mineralization extensions.
Peter Kudulski: Additional drilling at 19 O. One is expected in 2025 to confirm and potentially extend the orebody geometry and to convert inferred mineral resources in the gold lenses to mineral reserves.
Peter Kudulski: Under the recent geophysical targets is a very strong deep anomaly located at Cooper Lake North approximately six kilometers from <unk>.
Peter Kudulski: Drilling at the Cook Lake North property is continuing throughout the winter season.
Peter Kudulski: We are pleased to have signed our first ever exploration agreement with a kitchen Whopper Cree nation, reflecting our commitment to meaningful collaboration as we explore for new mineral resources in the snow Lake and central regions. Additionally.
Peter Kudulski: Additionally, in Flint front, we continue to advance tailings reprocessing studies to recover critical minerals and precious metals, while creating environmental and social benefits for the region.
Peter Kudulski: And early economic study on the zinc plant tailings reprocessing opportunity has confirmed the potential for a technically viable reprocessing alternative so we have further engineering work underway.
Peter Kudulski: In Peru, our exploration activity surrounding the Maria Reyna and cover Utah properties near Constancia continues to focus on permitting and drill a preparation.
Peter Kudulski: As part of the drill permitting process environmental impact assessment applications were approved by the government in June 2020 for Murray Arena and.
Peter Kudulski: September 2020 for Cabo veto.
Peter Kudulski: We anticipate the drill permitting process to be completed in 2025 at which point, we will initiate an extensive 18 months drill program.
Peter Kudulski: Concluding on slide 18, Hebei is set up for another highly successful year in 2025.
Peter Kudulski: Core to our 2025 objectives is the continued focus on operating safely and sustainably aligning with our purpose to ensure that the company's activities have a positive impact on our people communities and the planet.
Peter Kudulski: We believe that copper has highly robust long term supply and demand fundamentals as global copper mine supply will be unable to meet growing copper demands.
Peter Kudulski: HUD based leading copper development and exploration pipeline and low cost stable operating platform and tier one jurisdictions offers investors meaningful copper exposure complementary gold exposure and continued strong near term free cash flow generation.
Peter Kudulski: This together with our resilient balance sheet provides significant upside potential for additional value creation as we prudently advance our many high return copper growth opportunities.
Peter Kudulski: With that we are pleased to take your questions.
Peter Kudulski: Thank you ladies and gentlemen, we will now begin the question and answer session.
Peter Kudulski: Joining the question here you May Press Star then one on your telephone keypad.
Peter Kudulski: You'll hear a ton of knowledge in your request.
Peter Kudulski: There isn't a speaker phone please pickup your handset before pressing the keys.
Peter Kudulski: So we're trying a question. Please press star then two.
Speaker Change: Today's first question comes from <unk> <unk> with Scotiabank. Please go ahead.
Speaker Change: Hi, good morning.
Speaker Change: If we can get some more color on your 2025 production guidance in Peru.
It's been meaningfully reduced from the 25 guide you put out in March of last year.
Speaker Change: Can you give us some color in terms of what's driving that reduction.
Speaker Change: Papa Katja, but what exactly are you seeing there and are there any implications to 2026.
Speaker Change: Good morning. Thank you thanks for the question.
Speaker Change: <unk>.
Speaker Change: As we mentioned with our last quarter results.
Speaker Change: Been experiencing more mining dilution and ore losses than planned in one of the high grade areas at Pampa country, and we've since investigated quite a bit further.
Speaker Change: Our guidance for 2025 includes conservative resource to reserve conversion factors tested by very thorough reconciliation work in the 2020 full production results.
Speaker Change: Now. So this is certainly limited as you suggested to 2022 pampa contract and specifically in 2025 only.
Speaker Change: On the gold production side, we accelerated some high grade benches from 2025 into 2024, which resulted in 2024 gold production exceeding the top end of guidance levels and.
Speaker Change: And then in addition, 2025 copper production is expected to be slightly lower than 2024 countries contributing a lower portion of ore feet.
Speaker Change: Approximately 25% of the ore feed in 2005 will be from Pampa contract compared to approximately one third in 2024.
So that's really.
Speaker Change:
Speaker Change: Whats.
Speaker Change: What the primary factors are.
Speaker Change: I'd also add even though you have not asked you that I kind of watch the markets reaction today, So our results and frankly, I'm pretty surprised because 2020 or was that outstanding year in 2025 will be another strong year of delivery with stable production and stable costs outstanding margins. So perhaps it's just the <unk>.
Speaker Change: Good day in the market.
Speaker Change: But I think is being driven by by what we've described.
Speaker Change: In Peru, specifically.
Andre Luzon: Andre would you add anything.
Speaker Change: So what I.
Speaker Change: I'd say just to build on what you said is so when we went into Q4 as we started recognizing some of the challenges in the model, we signal being towards the low end.
Speaker Change: The guidance last year, and we delivered that with.
Speaker Change: With the updated modeling we have since revised the models.
Speaker Change: To build and forecast into.
Speaker Change: 2025, and so now.
Speaker Change: We're anticipating being at the midpoint that's not.
Speaker Change: Like last year. So this is.
Speaker Change: We're really prudent forecast going forward and.
Speaker Change: There may be a little upside on that as well.
Speaker Change: Yes.
Speaker Change: The RFP.
Speaker Change: Sorry, Harry I'm pleased.
Speaker Change: Well that's great. Thank you thanks for the color.
Speaker Change: Any insight on what the blended average grade for copper may be now.
Speaker Change: Nancy on 25, given the repayments.
Speaker Change: The blended average age of 25 is above three.
Speaker Change: Three one <unk> in that range.
Peter: Thanks Peter.
Speaker Change: Peter I do share your feelings in terms of.
Speaker Change: Overreaction on the share price today, but clearly the guidance cut for 25 years.
Speaker Change: Negative.
Speaker Change: Got it thanks, thanks for that or if not you know I'd also stress that constancia is the 90000 ton per year top of mind with extremely attractive cost and it carries on it.
Speaker Change: This level at least through the end of the decade and after that Theres. Some massive upside offered by our exploration satellites within tracking distance of Constancia. So we remain very excited about the asset.
Speaker Change: If we're to building for the future is so the forecast for next year and incorporated in the guidance. We just discussed were some subtleties in the model per public Ghansham I'd say that our cost structure for Peru is year on year, we've been able to hold it flat almost the same and with no increases in and that strong cost.
Speaker Change: Performance in production.
Speaker Change: <unk> will carry forward post Papa content in the future.
Speaker Change: Thanks for the color.
Lawson Winder: Thank you and our next question comes from Lawson Winder with Bank of America Securities. Please go ahead.
Speaker Change: Yes.
Lawson Winder: Yeah. Thank you very much operator.
Speaker Change: Morning, Peter.
Speaker Change: I wanted to.
Speaker Change: After that the couple of minority interest process.
Speaker Change: And.
Speaker Change: What kind of interest you're seeing.
Speaker Change: Net corporate strategic more.
Speaker Change: Potentially financial investors sovereign wealth fund.
Speaker Change: Or is it more of a traditional type of partners that we've seen with.
Speaker Change: With off takers in that.
Speaker Change: <unk>.
Speaker Change: In terms of early indications within the <unk>.
Speaker Change: Numbers look like and then and then finally finally seeing you started the process.
Speaker Change: The expected.
Speaker Change: Timing and completion.
Speaker Change: Teleconference.
Speaker Change: Good morning, Ross. Thank you for that question.
Speaker Change: No.
Speaker Change: The answer to the very simple answer to your question is all of the above.
We've had very very strong interest from as you put it the traditional investors trading houses and alike, Alright, we visited with several middle.
Speaker Change: Middle East and potential partners later last year.
Speaker Change: Very very strong interest from the Middle East. We've also had very very strong interest from strategics.
Speaker Change: And on top of that is we've had some interest also from some financial advisers. So I would say the interest has been extremely strong we expect it to be a very competitive process.
Speaker Change: And to your question with respect to timeline, we think it will take up the order of four to six months to complete.
Speaker Change: Okay, Great and then.
Speaker Change: The other thing that would be helpful to get it over the next year for a with the <unk>.
Speaker Change: X growth Capex Capex run rate when you think about.
Speaker Change: The four key assets our operating regions.
Speaker Change: If we already.
Speaker Change: FX number in our model like an average for the next 10 years.
Speaker Change: And of course it correct.
Speaker Change: Pricing.
Speaker Change: <unk> by pricing level.
Speaker Change: What kind of a good run rate.
Speaker Change: Good morning lesson so are.
Speaker Change: Sustaining capital guidance for this year is approximately $365 million is a little higher than last year and that includes a lot of stripping at NBC.
Speaker Change: Staying capital and they had told us in that $50 million to $60 million range per annum, Peru ranges between about 130 to 170.
Depending on the tailings dam raise rbcs in that kind of $50 million range. So.
Speaker Change: We add all those numbers up that that's kind of in that $250 million to $300 million range on an annual basis.
Speaker Change: Okay. That's great. Thank you both of those responses very helpful.
Speaker Change: Thank you and our next question today comes from Dalton <unk> with Canaccord Genuity. Please go ahead.
Dalton: Thanks, Good morning, Peter and team.
Speaker Change: Peter I wanted to start by asking a couple of longer term questions. If you will that you mentioned that.
Dalton: Constancia is pretty robust until the end of the decade.
Speaker Change: Based on the Mifi I think.
Dalton: The carpet rates do drop off.
Dalton: After that if you start drilling the satellites. This year do you think.
Dalton: But maybe it would be ready for production by them.
Ross: Good morning Ross.
Dalton: No.
Speaker Change: So what I would say is first of all we.
Speaker Change: As I said during the I have said in the past, we combined the permitting processes will cover Utah and rearrange. So we'll obtain permitting for both of them at the same time and then we'll decide exactly what the process of all the sequence of our drilling will be.
Speaker Change: It's going to be an 18 month training program. So.
Speaker Change: Once we have completed our drilling program, we will have a better idea of exactly what the high grade satellite or whatever we're talking about are all going to be it will be targeted.
Speaker Change: I imagine that we will have a roughly similar timeline associated with permitting.
Speaker Change: For those operations. So it's unlikely that we would be in production before early 2000 <unk>.
Speaker Change: But I would say that.
Speaker Change: With the type of production to the levels of production that we have moving forward now as well as potential.
Speaker Change: Expansion of the mill infrastructure.
Speaker Change: To offset declining grades.
Speaker Change: We will have a very clear line of sight to what those satellites will bring.
Speaker Change: There is a gap of a year or two between.
Speaker Change: What we're talking about so it's very difficult for me to say today with any sense of certainty, whether we would bring a cover Utah, where Maria Reyna satellite into production by 2030.
Speaker Change: But I would say around about then.
Speaker Change: In the next couple of years or something like that but there will always be a very clear line of sight to it which I think would.
Speaker Change: Address any market concerns, but not only that by then we'll have copperweld and production as well. So we'll have already have added another 50% top production portfolio.
Speaker Change: Okay. Thanks for that Peter just made.
Speaker Change: So I just wanted to add something to open there as well.
Speaker Change: So with the lottery so one of the things that we're going through this year grew up renewing silver permits in Peru, and looking for some expansion in anticipation.
Speaker Change: The caveat to our marine arena deposits in.
Speaker Change: Although like Peter said, the timeline is going to be tied around $20 $30 with successful exploration there will be likely permitted in 28 or so to be able to increase throughput.
Speaker Change: Much higher level that we can accelerate.
Speaker Change: Understand you and bridge that gap. So we've been working on unplanned to mitigate those who was lower agree in future years.
Speaker Change: And if we get Marina and caviar sooner, even better like so it will be permitted to go at a high level of production with that Super High grade and then.
Speaker Change: If it does slide a little bit we had the opportunity to accelerate his stature and produce more metal.
Speaker Change: Got it thanks for that Entre and then maybe switching gears to Manitoba.
Speaker Change: The Canadian dollar has been hammered.
Speaker Change: Just wondering how much exposure of the Manitoba business has to the Canadian dollar and.
Speaker Change: Youre doing to sort of lock in these rates.
Dalton: Good morning Dalton.
Speaker Change: We budgeted conservatively for 135 copper obviously that was there.
Speaker Change: Today's spot prices slightly higher than that so a 10% change in the Canadian U S exchange rate is about a $60 million.
Speaker Change: The impact on cash flow and EBITDA and so that's a pretty significant increase in cash flows and that that affects both the PC business and the multiple business.
Speaker Change: Okay.
Speaker Change: Got it. Thanks C. J if I can just squeeze one last one in.
Speaker Change: Your balance sheet in very good shape right now you are still more than a year away from mass sanctioning copper world.
Speaker Change: Given the movement in the shares today and your valuation any thoughts on maybe buying back some shares.
Speaker Change: We are at bottom ticking again.
Speaker Change: And we're in enviable position with our balance sheet, having lowered our leverage on a full turn over the course of 2024.
Speaker Change: We have some bonds that.
Speaker Change: More than a year away.
Speaker Change: From being due and we're always looking at opportunities too.
Speaker Change: Allocate capital.
Speaker Change: The highest risk adjusted returns.
Speaker Change: Youll see in our capital forecast this year that we have some investments in our business that we think are high return businesses.
Speaker Change: The practices that we've.
Speaker Change: Embarked on including new Brit.
Speaker Change: For over 35% return projects.
Speaker Change: As we look at it.
Dividends and share buybacks will always be evaluated against those internal projects.
Speaker Change: As Peter mentioned, we are surprised with the overhang today in India and the share price. So it's always something we consider actively.
Speaker Change: We allocate capital.
Speaker Change: Thanks, very much guys.
Speaker Change: Thank you and our next question comes from Anita Soni with CIBC World markets. Please go ahead.
Speaker Change: Good morning, Peter Eugene and Andrew a question for Andre on the dilution and ore losses could.
Speaker Change: Could you give some color on what you think the source of the issue or is I'm. Just wondering if it was that Joseph mystical model or is it something that's happening from the mining side of the.
Speaker Change: Operations.
Speaker Change: Yes. Thanks for the question so so as we're going through.
Speaker Change: With all of our operations, we were continually updating their models.
Speaker Change: Thing that that we do every every quarter.
Speaker Change: Our cases monthly looking at reconciliation factors in this case here.
Speaker Change: It does appear to be more juice statistical because it didn't affect the goal. We had positive reconciliation on the goal then there was just.
Speaker Change: More variability on the on the copper.
But those were corrected.
Speaker Change: Projected in the fourth quarter, we updated with our models.
Speaker Change: Fourth quarter or so so those are all the best estimates that we have going forward into 2025.
Speaker Change: And so we're very confident that.
Speaker Change: Achieving the midpoint or better.
Speaker Change: And what kind of I mean, what did you use for your.
Speaker Change: <unk> three <unk> or Q4, so all of our models ordinary Creek.
Just ordinary group.
Speaker Change: And then.
Speaker Change: How much of what was the cutting factor that you use for the 2025 and how many times did that impact in 2025.
Speaker Change: So again, sorry could you repeat I didn't catch the question.
Speaker Change: Can you reduce the grade in 2025, so I'm just trying to get an understanding of how much how much in terms of tonnage was impacted by pre.
Speaker Change: Reduction in grade and what did you like how much did you reduce it by.
Speaker Change: Factor like 10 percenter.
Speaker Change: 15%.
Speaker Change: So we think we could probably take it offline, it's pretty detailed but what I'd say is its very focused to Papa concho Papa conscious only about a third of the production and where we have right. Now is a resource model that has a lot of information with blast holes in it.
Speaker Change: New information that makes it.
It's the best model going forward. So it's not about cutting it we have a lot more information now.
Speaker Change: Okay, and then sorry.
Speaker Change: And my last question would be how much of the Papa contour would've gone in 2020 Satcom.
Speaker Change: Okay.
Speaker Change: Zero, there's no word hopper cars is done in 'twenty six yes, we're done this year.
Speaker Change: Alright, that's it for my question. Thank you very much.
Speaker Change: Thank you and our next question comes from Peru.
Raymond James: Raymond James Please go ahead.
Speaker Change: Yeah.
Speaker Change: Thank you operator, and good morning, everyone.
Speaker Change: So just a couple of questions from the presentation here. The first one just on copper world Peter in your slide there you can talk about it a made in America strategy producing copper cathode.
Speaker Change: Just wanted to revisit that because I know in the past there's been some discussion about whether you actually end up going all the way in making the cathode or whether you just produce a concentrate and I think that there was a capex trade off related to that decision. So have you now committed that youre going to kind of go down the path of producing cathode in country or.
Speaker Change: That's still something that's up for debate.
Speaker Change: Good morning.
Speaker Change: This is a very easy answer to your question is yes, we are committed to it. It is certainly is a key component of the pre feasibility study and it will be a key component of the feasibility study going forward, we think that the opportunity to produce made in the United States copper cathode.
Speaker Change: It is very very attractive.
Speaker Change: Basically given some of the geopolitical.
Speaker Change: Disconnects that were seeing in the environment now and I think is very very supportive of building our business in the United States.
Speaker Change: I mean of course, we will take a hard look at the technologies that we're going to use that we spoke of in planning to to continue to use the albion process better remember that its a project thats funded out of cash flow and approximately <unk> four while we were operating.
Speaker Change: Okay. Thanks for that and maybe just earlier in the conference call you made a reference to add Manitoba running above permitted capacity and there was an allowance from the government can you provide some more detail on the allowance from the government and how long you expect that to persist.
Speaker Change: So first I think that you're.
Speaker Change: You're you're mixing up our Peru, and Manitoba, Peru, where we have an allowance and the government to exceed production permitted capacity by 10%.
Speaker Change: The answer on the Manitoba Society as we received the permits to increase production at new Britannia to 2500 tonnes per day.
Speaker Change: And you know as we mentioned in the materials, we still we've been producing over in the last quarter at over 2000 tonnes per day.
Speaker Change: Okay. Thanks for that clarification, yes, I think I misheard you on that one.
Speaker Change: And then just the last one there just a question related to <unk> question on potential buyback.
Speaker Change: Part of the reason why your balance sheet.
Speaker Change: Has strengthened.
Speaker Change: Weighted to the equity issuance that you did earlier in 2024.
Speaker Change: So I'm just wondering.
Speaker Change: At this point and I imagine that part of strengthening the balance sheet was to get ready for copper world.
Speaker Change: At this point.
Speaker Change: Safe to assume that kind of a share buyback would kind of be off the table given part of the range was to get to get ready for copperweld coming potentially in 2020 for starting the construction in 'twenty 'twenty six.
Speaker Change: I'll, let Jim give you a broader answer to it but in essence it is unlikely that Pete.
Speaker Change: Would do a share buyback in the wake of issuing equity Eugene anything you would add to that.
Speaker Change: Part of a broader strategy pointed the equity issue was to pre fund the.
Speaker Change: Stabilization optimization work in British Columbia, and that's underway that's going to be spent this year in 2025 and also put the balance sheet in a position to.
Two.
Speaker Change: Potentially sanctioned copper gold project.
Speaker Change: In the first half of 2026, and I think we're really well on track on that.
Speaker Change: We always look at.
Speaker Change: Opportunities, both internally and externally to.
Speaker Change: Generate returns for our shareholders and we will.
Speaker Change: We need to monitor the situation, but as Peter mentioned, where it's.
Speaker Change: It's not we don't take this lightly and that kind of a one quarter decision. This is we're building a resilient balance sheet to be able to reinvest and generate superior returns over a stable time for sure.
Speaker Change: Shareholders.
Speaker Change: We're in a really good pathway to do that I think we have the lowest leverage among our peers.
Speaker Change: Reduce deaths.
Speaker Change: Donnelley and our capital structure, and we have a lot of financial flexibility going forward in terms of the refi of the bonds and the sanction of cop world in the context of <unk>.
Speaker Change: All the capital allocation opportunities that we have.
Speaker Change: With the goal of ultimately being stable.
Speaker Change: I'm dividend payers correct.
Speaker Change: Okay. Thanks, guys.
Speaker Change: Thank you and our next question comes from Pierre Vaillancourt with Haywood.
Speaker Change: Please go ahead.
Pierre Vaillancourt: Thanks, I was wondering if you could elaborate on the on the tax expense this quarter and what implications are for future quarters.
Pierre Vaillancourt: Yes, there was an elevated tax expense in 2024 due to the differences in mining tax versus income tax.
Pierre Vaillancourt: Particularly given the strong production.
Speaker Change: In Peru.
Speaker Change: The higher gold price as well as well as that strong production in Manitoba.
Speaker Change: Was elevated in 2024, it will unlikely.
Speaker Change: I remain elevated in 2025 as these prices prevail, but normalizes.
Speaker Change: As pop contracts exhausted in Peru and.
Speaker Change: Anders.
Speaker Change: As we think Oscar pools in Peru as of a year ago.
Speaker Change: Also if I may.
Speaker Change: Wondering if you could give us a sense.
Speaker Change: With with Pampa cannot share.
Speaker Change: Finishing this year, what with the longer term profile for Constancia in general is in the context.
Speaker Change: The mill expansion, so it's going to I mean, it's down relative to guidance was previously.
Speaker Change: Probably go down again in 2006, how does that where do you achieve steady state.
Speaker Change: In the context of.
Our planned mill expansion until of course, Kevin heater or ray that come along.
Speaker Change: Sure.
Speaker Change: Great.
Speaker Change: That's pretty layered question.
Speaker Change: We're going to give a lot more clarity on the future year's guidance coming up.
Speaker Change: Sure.
Speaker Change: In March with our reserve and resource Declaration, So we'll be able to give you a lot more color on.
Speaker Change: On that coming up but but there are a sequence of production improvements that we're doing like right now we're doing.
Speaker Change: And it's not really baked into the guidance or budget as we're doing pelo rejections successfully right now we're seeing some improvements in grade and throughput.
Speaker Change: We're planning to implement that.
Speaker Change: Towards the end of this year's Pebble Crushers, we don't know we might see some production this year, but probably because the benefits will go into 2026 and pending on the combined of those we may expand that as well because we know we're planning on being installed one pebble crusher, but we have the opportunity and the permits will be in place to put up before.
Speaker Change: And so there's all of those baked in and then like I mentioned earlier about Mod for permit update that's going to be a significant production increase that could happen. After 2028, and so will signal some of that is like you say.
Speaker Change: All of that in the three year guidance coming up in March.
Speaker Change: Is that was that that would be.
Speaker Change: Total rejection I mean does that is that significant enough to matter do you think Mike.
Speaker Change: It does so and so one of the challenges is the hardness and so so just and it's not every day when we have good good throughput is as we're seeing but some days and are on our permit is on an annual basis and so we're seeing days up as high as 100000 tons per day.
Speaker Change: And the 10% improvement that.
Speaker Change: We're talking about is about a 94000 tonnes per day over our permitted level. So we are seeing.
Speaker Change: Some significant improvements as we're going through this and we're in where were linked to be relatively hard ore.
Speaker Change: So we're quite pleased with the work that the team's doing there continually.
Speaker Change: Improvements in the mill and improving recovery and so we're going to take some of those into that into the guidance and and as we get further improvements it will get better than what you see over time.
Speaker Change: But is it is it safe to assume a greater constancia will be maintained.
Speaker Change: Or is there any.
Speaker Change: So the grade doesn't has improved with pellet rejections. So generally the pebbles are hard and lower grade and we do see a slight improvement in grade as that goes through as well too, but it's too early to quantify.
Speaker Change: Alright, okay. Thanks, Andre Thank you Jim.
Speaker Change: Thank you and our next question comes from Stefan <unk> with <unk> Securities. Please go ahead.
Speaker Change: Yes. Thanks very much just was curious if you could just any comment on the strategy. The recent in Arizona, and Oregon doesn't have that kind of fits into the plan going forward in the portfolio.
Speaker Change: Sure Hi, Stephen how are you.
Speaker Change: Thanks, very much for the question I.
Speaker Change: I think that.
Speaker Change: We manage a portfolio of junior mining company investments and we've done that for several years and we look for investment opportunities that fit our strategic criteria.
Speaker Change: We all know that copper is scarce and neuro.
Speaker Change: He is looking for ways to prudently increase our corporate exposure.
Speaker Change: Arizona Sonora is a copper project in Arizona, which is of course, an important region for us without Copperweld project located in southern Arizona.
Speaker Change: So this strategic investment.
Speaker Change: Resona, Sonora and increases our copper exposure in what we consider to be a top mining jurisdiction.
Speaker Change: It provides them with some funding to Derisk the project and it supports further copper mining in Arizona, and we as shareholders together with Rio Tinto, we like the team.
Speaker Change: We like their asset.
Speaker Change: And.
Speaker Change: So it's just something that we've put into the portfolio.
Speaker Change: Okay, Great. That's helpful. Thanks very much.
Speaker Change: Okay. Thank you.
Speaker Change: Showing no further questions at this time, so I'd like to conclude the question and answer session I will turn the conference back over to Candace Brule for any closing remarks.
Candace Brule: Thank you operator, and thank you everyone for joining us today. If you have any further questions. Please feel free to reach out to our Investor Relations team.
Speaker Change: Thank you and have a great day.
Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending you may now disconnect your lines and have a wonderful day.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].