Q1 2025 Royal Gold Inc Earnings Call
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for the sort of non-GAAP financial measures, including adjusted net income, adjusted net income for share, are available in yesterday's press release, which can be found on our website.
Speaker Change: Bill will start with an overview of the quarter. Martin will give some commentary on the portfolio, and Paul will provide a financial update. After the formal remarks, we'll open the lines for a Q&A session. I'll now turn the call over to Bill.
Speaker Change: Good morning, and thank you for joining the call. I'll begin on slide four. Our first quarter gave us the solid start to 2025. Our portfolio delivered steady performance and the strong and rising gold price was a significant tailwind.
Speaker Change: earnings for the quarter were a record of $113 million or $1.72 cents per share. We recognize a couple of discrete tax items that Paul will describe in more detail, and after adjusting for these items, earnings were a strong $100 million or $1.51 cents per share.
Speaker Change: Gold remained the largest contributor to revenue for the quarter at about 75% of total and our geographic waiting remained consistent with over 53% of our revenue generated from the US, Canada and Australia.
Speaker Change: Our low-end stable G&A allowed us to maintain our high margins and we have an adjusted EBITDA margin of 82% for the quarter.
Speaker Change: We paid our first dividend of 2025 at our new quarterly rate for 45 cents per share, which is a 12.5% increase over 2024.
Speaker Change: We paid our first dividend of 2025 at our new quarterly rate of 45 per share, which is a 12, 5% increase over 2024.
Speaker Change: Our annual dividend has increased every year since 2001, and what are the only precious metals company in the S&P high yield dividend aristocrats index.
Speaker Change: We also achieved the full repayment of the rainy River advance stream deposit during the quarter, we made our investment at rainy River. During the initial construction in 2015, and we're pleased to see new Gold's plans for at least another nine years of operation.
Speaker Change: Continuing to expand the pit and ramp up of underground production.
Speaker Change: On the new business front, we entered into an additional agreement with arrow copper to acquire an incremental stream interests in <unk> and increase the stream coverage and a very prospective area.
Speaker Change: Since our initial investment in 2021 Arrow has successfully added high grade resources and increased production in 2017.
Speaker Change: And we are pleased to increase our exposure to this asset.
Speaker Change: We paid $15 million for this additional interest from our cash balance and we ended the quarter with 1.25 billion with total available liquidity.
And finally, we published new additions of our investment stewardship report and asset Handbook in mid April.
Speaker Change: These are comprehensive documents that should help the market understand our portfolio and the outlook for our business.
Speaker Change: The market's focus is often only on the largest assets in our portfolio, but some of the smaller assets are important to our overall business and they have interesting growth potential.
Speaker Change: The asset Handbook provides the detailed required to understand and value of this potential.
Speaker Change: I will turn the call over to Martin for an overview of Q1 revenue.
Martin: Thanks, Bill turning to slide five I'll give some comments on first quarter revenue overall revenue was $193 million with volume of 67600 Geos.
Martin: My last quarterly call, we forecasted softer GE ourselves from a student segment in the first quarter stream sales met our expectations and any softness was more than offset by strong metal prices and a stronger contribution from our royalty segment.
Martin: Brokerage revenue was up by about 53% from the prior year quarter to $71 million.
Martin: Another strong quarter independent Scioto Man show in Robinson, and lower revenue from the Cortez legacy zone.
Martin: The contribution of our royalty segment, which has grown over the past few quarters with revenue from several new assets.
Martin: Segment contributed about 77% of total revenue in the quarter.
Martin: Revenue from our stream segment was $122 million up by about 19% from last year with increased gold sales from Pueblo Viejo, and Goldman copper sales from Mount Milligan, partially offset by lower sales teams Argentina.
Martin: I'll turn to slide six and give some comments on notable developments within the portfolio.
Martin: At Mount Milligan, <unk> reported first quarter results on Tuesday, and confirm the Golden copper production guidance for 2025.
Martin: So terra is expecting gold production of 165 to 195000 ounces and copper production was 50 to 60 million pounds with both weighted to the second half of the year.
Martin: Remember that we experienced a normal course lag of about six months from production at the mine site. The soils. So we will see the benefits of the higher production waiting in the first half in 2026.
Martin: <unk> also provided an update on the mine life extension project.
Martin: <unk>, great extending the mine life beyond 2036 like highlighted the potential for some increase to no capacity grew ball mill motor upgrades and additional downstream flow sheet improvements, which may also improve overall metal recovery.
But pretty feasibility study could provide a significant catalyst for royal gold.
Martin: Look forward to seeing the results when it's published in the third quarter.
Martin: Well then the coil tech provided gold production guidance of 35 to 39000 ounces in 2025, which is significantly higher than the 2020 for production of 20800 ounces.
Martin: The main driver of this increase is higher mill throughput due to increased water availability.
Martin: Mount Milligan, we also experience a normal course lagged behind the coils about six months from production of them on site to soils. So.
Martin: But to see the benefit of this increase production later in 2025.
Martin: Turning to slide seven the quarter as Barrick announced yesterday this is Mike.
Speaker Change: Tightening overall gold production guidance of between 680, and 765000 ounces for the year as well.
Speaker Change: We highlighted in our 2025 guidance press release, we estimate an overall average royalty rate was three 1% on this production.
Speaker Change: Eric also reported progress on installing ventilation infrastructure at gold rush, which should support increased mining rates at four mile. The exploration campaign to define the ore body and overall footprint started which will support the pre feasibility study and exploration continues at huntsman slipped targets with encouraging result.
Speaker Change: It's equivalent of you I hope articles so reported yesterday was it 2020 gold production guidance of 370 to 410000 ounces for 60%.
Speaker Change: Sure.
Speaker Change: After completing a 35 day shutdown debottlenecking work on the expanded plant in the first quarter.
Speaker Change: It also provided an update on the mine life extension project, which is focusing on housing resettlement and engineering work on the new tailings storage facility.
Speaker Change: So far 220 homes are being constructed.
Speaker Change: Families have been resettled and the tailings facility is on track for commissioning in late 2029.
Speaker Change: I'll wrap up with some comments on other portfolio assets <unk> and <unk>.
Speaker Change: Reported the high grades <unk> results have been strong gold and steady coke product production in the first quarter.
Speaker Change: Months' expects coal production to remain relatively steady for the second quarter before beginning to shift to a higher proportion of silver.
Speaker Change: Our goal.
Speaker Change: And fourth quarters.
Speaker Change: A poem Macau energy are the 2025 silver production guidance of one three to one 5 million ounces.
Speaker Change: <unk> also reported early works on camp and road construction as well as land acquisition in personnel recruitment of started on the expansion project.
Speaker Change: Construction is expected to begin in late 'twenty, six but remains subject to completion of the feasibility study.
Speaker Change: Nevada results of preliminary economic assessment studies were released for various assets operated by IAC, where we had royalty interests. The granite Creek underground production is ramping up to 60000 ounces per year over an eight year mine life.
Feasibility study is expected in the fourth quarter with includes an updated operational plan.
Speaker Change: Open pit project to granite Creek is targeted to produce 130000 ounces per year over a 10 year mine life.
Speaker Change: Feasibility study is also expected in the fourth quarter.
Speaker Change: But Ruby Hill the Al <unk> project can said there is a high grade underground gold mine producing approximately 100000 ounces per year over a 10 year mine life and the mineral point project conversions, a large open pit heap Leach gold mine, producing approximately 290000 ounces gold equivalent.
Speaker Change: The year over a 16 year mine life, we look forward to seeing progress with all of these projects.
Speaker Change: In fact river in Nunavut, B, two gold expects to poured first gold in the second quarter.
Speaker Change: Any royalty revenue to us on production. This year will be based on an initial royalty rate is 0.7% lead to also announce the results of an updated ni 43 101 report.
Speaker Change: They are targeting gold production of approximately 300000 ounces per year for the first six years.
Speaker Change: Two is also finalizing a study in late 2025 or early 2026 to evaluate an increase in mill throughput from 4000 to.
Speaker Change: <unk> 6000 tonnes per day.
Speaker Change: Finally, the cash price paid for each ounce of gold delivered as Robin Chemo will increase from 20% to 40% of stock from the <unk>.
Speaker Change: 49000 ounce delivery threshold is reached.
Speaker Change: We've received deliveries of 46500 ounces at the end of March and we expect this price increase will occur sometime in this current quarter.
Speaker Change: Note also that the effects of the transaction that Bill mentioned will be to extend the thresholds. The deliveries of the current 5% stream right from module 3000 to 160000 ounces.
Speaker Change: I'll now turn the call over to Paul for a review of our financial results.
Paul: Thanks Martin.
Paul: Turning to slide eight and give an overview of the financial results for the quarter.
Paul: But this discussion I'll be comparing the quarter ended March 31, 2025 to the prior year quarter.
Paul: Revenue for the quarter was up strongly by 30% to $193 million.
Paul: Metal prices were a primary driver of the revenue increase with gold up 38% silver up 37% and copper up 11% over the prior year.
Paul: <unk> remains our dominant revenue driver, making up 75% of our total revenue for the quarter, followed by silver, 12% and copper at 9%.
Paul: Royal Gold has the highest core revenue percentage when compared to our major peers in the royalty and streaming sector.
Paul: Turning to slide nine I'll provide a bit more detail on certain financial line items for the quarter.
Paul: G&A expense was $11 1 million down slightly from the prior year and mostly due to lower corporate costs.
Paul: We typically see higher G&A expense in the first quarter and this is the period when we grant employee equity awards and recognize higher noncash stock compensation expense when compared to other quarters throughout the year.
Paul: Excluding noncash stock compensation expense, our cash G&A remained low at approximately 4% of revenue for the quarter.
Paul: Our DD&A expense decrease of $33 million from.
Paul: From $39 million in the prior year.
Paul: The lower overall depletion expense this quarter was due to lower depletion rates in our stream segment as a result of reserve increases.
Paul: Lower gold sales from <unk> and lower gold production at Cortez also contributed to the decrease.
Paul: On a unit basis. This expense was $488 per geo for the quarter compared to $539 per geo in the prior year.
Interest and other expense decreased significantly to $1 2 million from $4 $6 million in the prior year.
Paul: The decrease was primarily due to lower average amounts outstanding under the revolving credit facility.
Paul: Tax expense for the quarter was $10 million compared to $27 million in the prior year.
Paul: The lower income tax expense in the current period included two discrete tax benefits.
Paul: At $12 million benefit net of valuation allowance for additional recoverable basis in foreign jurisdictions, and second a $1 $7 million benefit related to a withholding tax refund on our foreign royalty.
Paul: Excluding these discrete tax benefits our effective tax rate for the quarter was 19, 4%.
Paul: Net income for the quarter increased significantly over the prior year to a record $113 $5 million or $1 72 per share. The increase in net income was primarily due to higher revenue lower income tax expense and lower interest expense.
Paul: After adjusting for the discrete tax benefits I just mentioned.
Paul: Adjusted net income was $99 8 million or $1 51 per share.
Paul: This is the second highest in the company's history. After the record earnings we recognize in the fourth quarter of 2024.
Paul: Our operating cash flow this quarter was $136 million down.
Paul: Down slightly from $138 million in the prior period.
Paul: Slight decrease was primarily due to an increase in cash taxes paid offset partially by higher net cash proceeds received from our stream and royalty interests.
Paul: Finally, I will now turn to slide 10, and provide a brief summary of our financial position as of March 31 2025.
Paul: We remain debt free at the end of the quarter and our total liquidity grew to approximately $1 $25 billion.
Paul: Which includes the fully undrawn and available $1 billion revolving credit facility and approximately $250 million of working capital.
Paul: That concludes my comments on our financial performance for the quarter and I will now turn the call back to Bill for closing comments.
Bill: Thanks, Paul first quarter provided a good start to 2025, our portfolio performance was solid and we are maintaining our 2025 guidance ranges for metal sales DD&A and tax rate.
Bill: The outlook for economic conditions remains uncertain and that is reflected with generally elevated volatility in the markets over I think we are well positioned to provide stability.
Bill: With our leverage to a strong gold price.
Bill: Diversified portfolio strong balance sheet and commitment to paying a dividend we are well placed to continue to deliver solid results and on a final note Kevin Mcarthur will retire from the board at our upcoming stockholder meeting.
Bill: Kevin has served on the board since 2014, and he is leaving to focus on a new role.
Bill: Will require significant attention.
Speaker Change: Kevin strategic and operational insights will be missed and I would like to thank him for his many contributions to royal gold.
Speaker Change: Operator that concludes our prepared remarks I'll now open the line for questions.
Speaker Change: Thank you.
Speaker Change: Now begin the Q&A session.
Speaker Change: I would like to ask a question. Please press star one on your China. Thank you.
Speaker Change: Pat.
Speaker Change: To withdraw your question please press stop native boutique.
Amit: <unk> sure sure Thanks, Amit it like connect.
Amit: As a reminder, the historical H one to ask a question.
Amit: We will post for amendment to allow questions to be registered.
Speaker Change: Our first question today comes from Cosmos <unk> from CIBC. Please go ahead.
Cosmos: Great. Thanks, Bill and team for the conference call.
Speaker Change: Maybe my first question is on your asset Handbook and thanks once again for a publishing your asset Handbook I find it very helpful.
Cosmos: Especially this year I see that you include it.
Cosmos: Operators are the different operators multiyear production outlook for your assets I guess, one of the major request from investors has always been for <unk>.
Bill: Long term guidance from Royal Gold I know you wont be giving one out however, maybe bill.
Bill: Walk us through how we can use this new information and our 2024 asset Handbook to help us build our own sort of near near term and long term kind of growth profile.
Bill: Sure. Thanks, Thanks for the question and obviously the information in the Handbook I think it only went out to 2028 so.
Bill: We don't give long term guidance and what we typically do is we'll take an operator's forecast. So we may adjust that we may adjust that up we may adjust that down based on factors that debt.
Bill: We see but what we wanted.
Bill: The market to try to understand is how does the operators see their own projects and try to put them all that information into a couple of pages. So that you can say okay.
Bill: <unk> expects 55000 ounces of gold to be produced.
Bill: This is the stream that Royal gold has used the cash price.
Bill: And maybe that just helps you refined the short term to the medium term.
Bill: Look at it so it was more about condensing information that's already out there to try to make it easier.
Bill: For you to build it into a model and do your calculations.
Bill: Yes, I think it does help.
Bill: Thank you.
Bill: Yes.
Bill: Maybe my next question is on the corporate development and you've been active.
Bill: Made a number of sort of.
Bill: Changes or increases in existing.
Bill: That's what their portfolio 17th we touched on it back River.
Bill: Is that where youre seeing some of the key opportunities are or you've done cactus as well so that's a completely new.
Bill: Sure.
Bill: Asset so could you maybe talk about the opportunity set is it mostly coming from current assets or are there new opportunities coming from.
Bill: New assets as well maybe talk about that landscape.
Bill: Yes, let me, let me touch on existing asset opportunities and then the general market I'll try to get Dan Breeze on here, but.
Bill: Let's say the assets in our portfolio, we know better than anybody else.
Bill: Have a regular dialogue with the companies and.
Bill: And we have existing agreements they know how we work.
Bill: And sometimes it's just easier.
Bill: To build on our relationship.
Bill: We have built together.
Bill: Then it is for a company to go out and look now I would say.
Bill: In portfolio opportunities relative to new business, that's going to be pretty small.
Bill: It's opportunistic.
Bill: And again, it really comes down to the relationship and the familiarity we have with the project.
Bill: As for new opportunities I don't know 10 can you.
Bill: Can you jump in here.
Bill: Sure Bill Hi, Hi, Cosmos. Thanks, Thanks for the Great Ed.
Yes, hi, there, we talked a little bit about this I think it was in the last call just in terms of the landscape and we made comments that.
Bill: Things were very busy you are getting very busy started the new year. That's really continued cosmos I think it's one of the busier times we've seen.
Recent memory.
Bill: It's really hard to say, where specifically where one set of opportunities is coming from it's really broad right now.
Bill: If you look back in.
Bill: In the landscape in terms of the announced transactions in our sector over the last say 12 months to 18 months.
Bill: The kinds of things that are are available right now to look at and to your comment on the third party royalty market.
Bill: That's going to remain quite strong you mentioned cactus, we bought the <unk> gold.
Bill: Royalties as well last year.
Bill: Third party royalties and I think just with these prices, we're seeing right now it's motivated sellers.
So I think that that third party market.
Bill: <unk> to roll forward, but there are other things are bigger things on the streaming side, we're seeing some new royalty opportunities I'd say over earlier stage type projects as well.
Bill: So we are quite busy but it's very broad in terms of we're looking at.
Bill: Great.
Bill: Maybe one last question on taxes, God I love taxes.
Bill: But on taxes, there was a discrete.
Bill: The tax item in the quarter $13 7 million and just wanted to confirm that's a sort of one time.
Bill: Benefit or onetime item.
Bill: And then if you can remind us as you mentioned if I were to exclude that benefit it will be 19, 4% effective tax rate could you remind us what we what the guidance was for the percentage for the full year our tax expense.
Bill: And for that should we factor in the 19, 4%.
Bill: As part of that calculation for the full year or should we use the other number that without or with the discrete tax benefit.
Paul: Well, so I'll ask Paul to happen.
Bill: You don't want to go ahead and.
Speaker Change: Well I don't like packages as much as you do so.
Bill: Yes.
Heiko: [laughter] Heiko.
Heiko: Thanks for the question.
Heiko: Good good to hear from you yes.
Heiko: Yes, I think the unwind your question there or to summarize it maybe.
Heiko: Short answer is we did have those two discrete items.
Heiko: You have heard us say or me say in the past these discrete items.
Heiko: Are there largely infrequent.
Heiko: There are unusual.
Heiko: But so if we took out away those two discrete items for the quarter, yes, the effective tax rate was 19, 4%.
Heiko: Our guidance for the year is 17% to 22% so.
Heiko: That number wedges right nicely.
Heiko: The mid part of that guidance range that we provided earlier and again no changes to that guidance.
Heiko: Got you great.
Speaker Change: Thanks, Bill and team and those are all the questions I have thank you.
Bill: Thanks Cosmos.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one on your telephone.
Speaker Change: Pat.
Our next question comes from Tanya <unk> from Scotia Bank. Please go ahead.
Tanya: Great. Good morning, everybody. Thank you so much for taking my questions got voted off an island on a previous call. So really appreciate that.
Speaker Change: I do have a few question.
Tanya: Can I just start on.
Tanya: On a quarterly basis I know on the previous conference call we talked about.
Tanya: How the year shapes up with each a stronger second half versus first half.
Tanya: Is that still the case.
Tanya: From a production of NGL sales standpoint, I understand that.
Tanya: Pricing.
Tanya: And on pricing, but generally on the asset basis is that.
Tanya: We should expect.
Speaker Change: I think thats still our expectation, but Martin can jump in here on Australia there.
Tanya: Yes.
Speaker Change: No that is still the expectation Tanya as strong a stronger second half yes.
Speaker Change: Okay, and when I started the second half do we have a strong Q4 like everybody else I'm just trying to understand.
Speaker Change: Uh huh.
Speaker Change: It would probably be a heartbreak.
Speaker Change: Yeah.
Speaker Change: Yes go ahead Martin if we can we can expect a stronger fourth quarter the problem that we sometimes run into.
Speaker Change: Is that true deliveries like a mill again or in <unk> can be really really lumpy and if we happen to have it in earlier that can move it quarter to quarter and that's why I think we talk more.
Speaker Change: That we do.
Speaker Change: We ended up with where the Milligan shipment. Some unexpected time and then that particular quarter is not what we thought would be.
Speaker Change: Okay, No I appreciate that but as you know it today that sort of how you what's the plan out with a stronger Q4, assuming the timing.
Speaker Change: As you'd expect.
Yes.
Speaker Change: Okay. So that.
Speaker Change: Juan Thank you for that one and then the other just one other on just on the modeling side just on the payment for 2025 that you have out there can you just remind me apologize.
Speaker Change: Sort of payments I saw $58 million was paid in Q1 can you just remind me kind of make sure I have all the payment.
Speaker Change: You have in the public domain right now that needs to go through your cash flow statement. This year.
Speaker Change: If I'm understanding your question correctly can you. So we have no other commitments out there that.
Speaker Change: That would go through that are known.
Speaker Change: Yeah, we did the CAC or I'm, sorry, the 17 and transaction $50 million, but there are no other.
Speaker Change: The commitments that we have that.
Speaker Change: You should be modeling for.
Speaker Change: Okay. So just the one that came through Q1.
Speaker Change: Correct.
Speaker Change: Okay perfect. Thank you for that just wanted to check and then before getting into the transactions and I'm getting that.
Speaker Change: Uh huh.
Speaker Change: On that call yesterday seems like.
Speaker Change: They've got the level of Yale back up again and that throughput is moving higher gold recoveries.
Speaker Change: I'll be picking up.
Speaker Change: How much Q3, Q2 Q3, but into Q4.
Speaker Change: They don't talk about the sales Miss their cat. So can someone just bring me up to speed on the silver circuit and what are you expecting there and then just remind me on the <unk>.
Speaker Change: The deferrals and whatnot.
Speaker Change: Standing and should there.
Speaker Change: The operational update.
Speaker Change: Q1 of next year, how do we see that.
Speaker Change: Our deferral come through for you. Thank you.
Speaker Change: Okay.
Speaker Change: Martin do you want to do a high level on the silver circuit and what.
Speaker Change: What theyre up to.
Speaker Change: Yes, so to answer the last question first time use the current deferral is 197 million ounces at the end of the first quarter.
Speaker Change: And really the discussion.
Speaker Change: During the conference call was was very similar to the to the discussion previously it appears.
Speaker Change: They told US in Q4, Q1 was going to be second or optimization type work to get that 600 are working properly that has now been confirmed to have been completed so that was a big job off the list of things that is required to improve recovery and overall throughput.
Speaker Change: There are several other other things happening over the year the glam service water type work the cooling towers in Q3, and that's that's one of the things that we really expect to have a significant improvement on the silver recovery going into Q4 and into 2026 and then there is <unk>.
Speaker Change: Carbon generation carbon regeneration kiln work happening in Q4.
Speaker Change: That again is going to help to improve recoveries. So no.
Speaker Change: No real change in the messaging there I think going forward over the over the year, we are going to see that recovery improving on the gold side and towards the end of the year, we're going to see the silver is starting to come out probably in Q4.
Speaker Change: And we.
Speaker Change: We're actually going on site on Monday, So we're going to get.
Speaker Change: Tuesday next week, so we're going to start to get a clearer view of how that work is taking place.
Speaker Change: And how should I be thinking about all the accumulation of deferred Salisbury.
Speaker Change: It's not coming through on the on your.
Speaker Change: Revenue side should I be thinking all of the fire LCB.
Speaker Change: Sort of taking two years.
Speaker Change: Sort of get through.
The system, how should I be thinking about that.
Speaker Change: Yes.
Speaker Change: Mike.
Speaker Change: Go ahead Mark.
Speaker Change: But no you go ahead Bill I was I was going to say, we've given we have I don't want to get that answer wrong. So I think.
Speaker Change: No.
Bill: I'll try not to get it wrong.
Bill: I would just take temper expectations when it comes to the timing of the deferred silver.
Bill: If you look at and we've talked about this before the silver recovery to get above 52, 5% and then we start getting a silver hedges.
Bill: If you look at the technical report that's out there that show a silver production and you say, okay. That's a 100% Berkshire, 60%. Our current deliveries are 75%. So when you look at the difference that 25% that sort of available based on their forecast production I think youll get a sense that I don't.
Bill: It's going to come in.
Bill: Very quickly I think it is kind of they come in over a few years.
Bill: Okay.
Bill: Alright.
Bill: Thank you so much for that.
Bill: Every day to think about the silver circuit.
Bill: Maybe moving on to the M&A side.
Bill: Yes.
Bill: I've kind of seen a bit of a shift.
Bill: What's available out there and that the transaction market just from some of your peers.
Bill: And I just wanted to understand whether youre seeing a similar thing and.
Bill: In terms of opportunity for yourself.
Bill: One of the opportunities.
Bill: My attention has gone that base metal companies.
Bill: Are you know coming full like where they haven't previously with maybe some balance sheet repair them given the weaker commodity prices, there and some larger screen.
Bill: Are you seeing that as well.
Bill: Number one and you want to go first.
Speaker Change: Sure Hi, Tanya Thanks for the thanks for the question.
Speaker Change: Think in general as I was saying the cosmos earlier than this.
Speaker Change: This opportunity set is pretty broad, but in that opportunity set we are we are seeing those kinds of opportunities.
Speaker Change: Obviously, the gold price.
Speaker Change: I think it's.
Speaker Change: Attracting the interest of the base metal operators and and looking for ways to potentially monetize in this environment. So.
We're seeing some of those pop up as well Tanya that's a fair comment.
Speaker Change: Okay and I was also told that there are some other opportunities as well in the gold space above and beyond just the normal mine balance.
Speaker Change: The primary match all that there is obviously some more asset sales beyond the newmont stuff.
Speaker Change: And maybe you know more M&A opportunities as well.
Speaker Change: And also what I found is that the size has moved up significantly up to the $1 billion range and I know last quarter, we talked about the $100 million to $300 million range for you.
Speaker Change: Has your range of opportunities Youre seeing changed from that $100 million to $300 million.
Speaker Change: Yeah.
Dan Breeze: Thanks, Dan.
Speaker Change: John Pollok.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yeah. So again, we are seeing some larger ones, but again when we talk of 100 to 300 <unk>, we're trying to to talk about.
Speaker Change: What I would consider normal.
Speaker Change: And we still see some of those opportunities, but we do from time to time get.
Speaker Change: Larger opportunities like when we bought the Cortez royalty a couple of years ago.
Speaker Change: Okay.
Speaker Change: Seems that there's been a shift that gets moved up into a larger range and I guess then.
Speaker Change: Understand whether youre seeing those lines of Wow.
Speaker Change: The majority of yours, I mean on one hand.
Speaker Change: The 300 million range is that how it should be thinking about it.
Speaker Change: Again on a normal course basis, yes.
Speaker Change: But we are seeing larger opportunities right now.
Speaker Change: Okay, I just wouldn't shift your expectations on a go forward basis to a much larger.
Speaker Change: Dollar amount.
Speaker Change: Okay, and then lastly, with everything shifting around evaluation shifting around how does corporate transaction set them.
Speaker Change: Paul you can start normal asset transaction.
Speaker Change: Yeah.
Speaker Change: I think we've been pretty consistent that.
Speaker Change: We have models on all of our competitors.
Speaker Change: We are open to a dialogue.
Speaker Change: It's just.
Speaker Change: It's always hard to find that right time, right, where the valuations are right the kind of work the social issues work.
Speaker Change: And so.
Speaker Change: We find ourselves focused on the asset deals just because it's just a little harder.
Speaker Change: To have a meeting of the minds.
Speaker Change: When it comes to the corporate deals, but we're obviously open to it.
Speaker Change: Okay.
Speaker Change: Thank you Patrick for things that the overall market has had a shift in the quarter to.
Speaker Change: Different type of opportunity. So look forward to seeing that I think it will be quite active and thank you all for all of the asset Handbook, we do find it very useful.
Speaker Change: Good.
Speaker Change: Thanks for the questions.
Speaker Change: Yeah.
Speaker Change: Thank you.
Operator: Our next question comes from Derick, MA with TD Cowen Derek. Please go ahead.
Speaker Change: Thank you and then you move forward with a full construction decision at Macao expansion could you give us a sense of what the correlation between the copper and silver grades are at the theater that fall within the area of interest and how that might impact the strength.
Martin: Martin do you want to take that.
Martin: Yes, Derek Thanks, Slide I don't have the numbers right at my fingertips, but I think it's safe to say that the correlation is similar to the correlation on the in the zone five mine so.
Martin:
Martin: Yes, I think Thats first of all I would say at the moment correlated similar to zone five.
Martin: No. That's fine. Thank you I appreciate that that's all for me.
Martin: Okay.
Martin: Thank you.
Martin: We have no more questions registered so I'll now hand back over to Bill for final remarks.
Bill: Thank you for taking the time to join US today, we certainly appreciate your interest and we look forward to updating you on our progress during our next quarterly call. Thank you.
Speaker Change: This concludes today's conference call. Thank you for joining everyone. You may now disconnect your lines.
Bill: Yeah.
Bill: [music].
Bill: Okay.
Bill: [music].