Q3 2025 Hecla Mining Co Earnings Call
Speaker #3: Thank you for standing by . My name is van and I will be your conference operator today . At this time , I would like to welcome everyone to the Q3 2025 Hecla mining Company Earnings conference call .
Speaker #3: All lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .
Speaker #3: If you would like to ask a question during this time , simply press star , followed by the number one on your telephone keypad .
Speaker #3: If you would like to withdraw your question , press star one again . Thank you . I would now like to turn the call over to Mike Parkin Vice President , Strategy and Investor Relations .
Speaker #3: Please go ahead .
Speaker #4: Thank you and good morning for joining us on Hecla . Third quarter 2020 results conference call . I am Mike Parkin Vice President , Strategy and Investor Relations .
Speaker #4: Our earnings release that was issued yesterday , along with today's presentation , are available on our website . On the call today is Robert Krcmarov President and Chief Executive Officer Russell Lawlar Senior Vice President and Chief Financial Officer Carlos Aguiar .
Speaker #4: Senior Vice President and chief operations officer Kurt Allen . Vice president , exploration , as well as other members of the management team .
Speaker #4: At the conclusion of our prepared remarks, we will all be available to answer questions. Turning to slide two, cautionary statements.
Speaker #4: Any forward looking statements made today by the management team under the Private Securities Litigation Reform Act and involve risks , as shown on slide two in our earnings release and in our 10-q filings with the SEC .
Speaker #4: These and other risks could cause results to differ from those projected in the forward looking statements . non-GAAP measures cited in this call and related slides are reconciled in the slides or the news release .
Speaker #4: I will now pass the call over to Rob .
Speaker #5: Thank you , Mike , and good morning , everyone . So turning to slide three . Let me just start by reminding you why heckler stands apart in the silver sector .
Speaker #5: You know , as the oldest silver company on the New York Stock Exchange with a history dating back 134 years . We operate exclusively in the Premier jurisdictions of the United States and Canada .
Speaker #5: We maintain peer leading silver exposure on both a revenue and resource basis , with an average reserve life . That's double our peer group .
Speaker #5: We're building Project momentum through strategic investment in our pipeline , and we're achieving cost excellence as the lowest cost producer among our peers .
Speaker #5: And I've got to say , these are exciting times . And Hecla really is thriving on strong silver and gold prices . We're using this momentum to strengthen our finances , fund high return projects and boost shareholder value .
Speaker #5: But I think the outlook is even brighter . Silver faces its fifth consecutive year of supply shortages , with rising industrial demand and investment flows expected to support prices for years to come .
Speaker #5: And unlike most of our peers , we're uniquely positioned with one of the most favorable silver to gold revenue ratios in the sector , allowing us to capitalize on this silver strength and drive meaningful value creation for our shareholders .
Speaker #5: Taking the slide four now , Q3 really was exceptional . And just let me walk you through why . Firstly , record results .
Speaker #5: We delivered record results this quarter . We hit revenues of $410 million . Net income came in at $101 million . And adjusted EBITDA was 196 million .
Speaker #5: These aren't just numbers . They prove that our business model works . We capture upside in strong markets while our cost position offers protection in weak ones .
Speaker #5: Now , here's what matters a lot . And that's our balance sheet transformation . Net leverage has improved from 1.8 times . This time last year to 0.3 times in Q3 .
Speaker #5: So that's a 83% reduction . And that's in a single year . It's a structural de-risking of the company . This de-leveraging consisted of fully repaying our revolver , redeeming $212 of $212 million of debt , and paying the 50 million Canadian note due to investment .
Speaker #5: Quebec . So this deleveraging effort has eliminated over $15 million in annual interest expense . We've gone from being capital constrained to capital flexible .
Speaker #5: Our cash flow generation has been nothing short of stellar , with generated $140 million in operating cash flow while consolidated free cash flow came in at $90 million .
Speaker #5: And here's the key piece . All four of our producing assets Greens Creek , Lucky Friday , Casa Bharati , Keno Hill generated positive free cash flow for the second consecutive quarter .
Speaker #5: So that's operational momentum . On the operational front , our silver production was 4.6 million ounces , up 2% from last quarter . Cash costs were -$2.03 per ounce , thanks to strong byproduct credits , while all in sustaining costs came in at $11.01 .
Speaker #5: As a result of this performance , we've tighten our production guidance and reiterated the cost guidance today . Surface Cooling project is progressing on track and is expected for completion in the first half of 2026 .
Speaker #5: While Greens Creek received its weapons permit for the dry stack tailings expansion . Completion of these projects is critical to the future success of the company .
Speaker #5: So in summary , our operations have executed really well with de-risked . The balance sheet and built financial flexibility with cash generated across all assets .
Speaker #5: And we're positioned to invest in growth . And that's the transformation story . I'll now pass the call over to Russell .
Speaker #6: Thank you . Rob . Moving to slide six I want to continue to highlight the strong financial performance we delivered during the third quarter .
Speaker #6: We generated $393 million in Minesite revenues with silver continuing to be our primary revenue driver at 48% of the total , followed by gold at 37% and base metals rounding out the balance .
Speaker #6: This percentage of silver revenue , especially with the jurisdictions in which we operate , makes us a standout in the industry . Our silver margins remain robust at $31.57 per ounce , representing 74% of the realized price of silver , with all in sustaining costs of just over $11 per silver ounce .
Speaker #6: We're demonstrating excellent cost discipline across our operations . Our net leverage ratio improved to 0.3 times during the quarter , the lowest in more than a decade , down from 0.7 times in the second quarter .
Speaker #6: This reflects our adjusted EBITDA , growing to $506 million on a trailing 12 month basis , as well as our significant reduction in overall gross debt outstanding .
Speaker #6: While maintaining disciplined capital spending . Most importantly , we generated consolidated free cash flow of more than $90 million during the quarter . Green's Creek led the way with nearly $75 million , demonstrating why it remains one of the world's premier silver mines .
Speaker #6: We continue to see the free cash flow , inflection . We've been speaking about at Casa Berardi , with nearly $36 million in free cash flow during the quarter , while Lucky Friday added 14 million and Keno Hill impressively contributed more than 8 million .
Speaker #6: While we continue ramping that asset up, the third quarter marked the second consecutive quarter of all of our producing mines contributing to positive free cash flow.
Speaker #6: As you can see at current prices , we anticipate generating significant cash flow as we turn to slide seven . I'll walk through our capital allocation framework , which is a disciplined and focused , which is disciplined and focused on six clear priorities , with each one having a specific purpose .
Speaker #6: Our first priority is investment in safety and environmental excellence . This is non-negotiable and is the foundation of everything we do . Second is investing in sustaining capital at our operating mines .
Speaker #6: We target a minimum of 10 to 15% returns . These operations investing in sustaining capital , keeps our production stable , extends our mine lives and generates cash flow with low execution risk .
Speaker #6: Third is our investment in growth capital , where we target returns of at least 10 to 12% . This investment is intended to increase production and extend mine life .
Speaker #6: However , we will only make these investments if they demonstrate robust economics that conservative prices . Fourth is investment in exploration . Historically , we've underinvested in exploration .
Speaker #6: However , because of the deleveraging of the balance sheet and associated cash flow , that's been freed up , we anticipate further investment in this area .
Speaker #6: In fact , we are currently targeting 2 to 5% of revenues as we look to 2026 investment and exploration provides asymmetric upside . And although we're planning to invest more in this area , we'll also be prudent with our investors dollars and target the highest return opportunities both brownfield near mines and Greenfield .
Speaker #6: Optionality . Fifth is we plan to make further investments in deleveraging and strengthening our balance sheet . From a pure financial perspective , we anticipate a return of 5 to 7% .
Speaker #6: However , more importantly , having a strong and delivered balance sheet reduces risk and provides flexibility . It also allows us to maintain investment during downturns and seize opportunities when they arise .
Speaker #6: The last priority is shareholder returns . We currently pay a quarterly dividend and will consider further shareholder returns only after operational requirements are met , and the balance sheet is strong .
Speaker #6: That said , we're confident enough in cash flow to start thinking about this . In summary , this framework isn't complicated . It's about maximizing value while maintaining financial flexibility to navigate cycles .
Speaker #6: We're operating under this framework now , and we've seen better prices and stronger cash flows . We'll see the capital and exploration projects we invest in meet these above criteria , including the remainder of this year .
Speaker #6: And with that , I'll turn the call to Carlos .
Speaker #7: Thank you . Russell . Turning to slide delivering exactly what we need from our cornerstone asset , a strong operational quarter driving robust free cash flow generation .
Speaker #7: Thank you . Russell . Turning to slide nine . up 46% from last quarter , driven by higher volumes sold and metal prices more importantly , the unit Greens Creek is excellent .
Speaker #7: The third quarter silver production came in at 2.3 billion ounces , with 15,600oz of gold , both tracking well to full year guidance .
Speaker #7: Cash costs came in at negative $8.50 per ounce , and 86 of negative $2.55 per ounce . Both after by product credits . Free cash flow was nearly 75 million for the quarter .
Speaker #7: Based on our strong year to date performance at Greens Creek , we are tightening our silver and gold production guidance and lowering our capital expenditure guidance while reiterating or cost guidance .
Speaker #7: Moving to slide ten . Lucky Friday continues to do what it does well deliver consistent , profitable silver . Third quarter silver production .
Speaker #7: Production was 0.31. 3,000,000oz , with a 7% increase in silver grade sales came in at 74.2 million , up 15% quarter over quarter .
Speaker #7: The free cash flow was 13.5 million , nearly tripled the prior quarter , reflecting improving operational momentum . The surface cooling project is on track for 2026 completion .
Speaker #7: This investment is strategic . It opens access to deeper , higher grade zones , extending mine life and profitability . Thanks to our strong year to date performance and Lucky Friday , we are tightening our silver production guidance , reiterating our total capital expenditure guidance and modestly raising our cost guidance .
Speaker #7: Turning to slide 11 . Q2 Hill . We have now delivered two consecutive quarters of positive free cash flow , a significant milestone third quarter silver production came in at nearly 900,000oz at an average rate of 323 tons per day .
Speaker #7: In a hill is well positioned to deliver on its 2025 silver production guidance . The free cash flow was 8.3 million positive cash generation , while still in ramp up and investment mode , we had hedges through the second quarter of 2026 , providing silver price protection during this period of capital investment , our reliability improved significantly in the third quarter thanks to the Yukon Energy successful repair of of the hydroelectric plant .
Speaker #7: This reduced a key operational risk . We have been managing consistent with other two primary silver mines . We are tightening our silver production guidance at Hill based on a strong year to date performance .
Speaker #7: Capital expenditures are expected to modestly exceed our original guidance as we are outperforming on several key factors , including the underground development , which is tracking 13% of our plant year to date .
Speaker #7: Turning to slide 12 . Casa Berardi delivered another solid performance , setting the mine up well to achieve guidance . Gold production of 25,000oz , down 11% due to planned lower underground ore grades in cash costs of $1,582 per ounce and A6 of $1,746 per ounce .
Speaker #7: We are tightening gold production guidance for Casa based on strong year to date performance , while maintaining our cash costs in ASIC guidance .
Speaker #7: Our 2025 capital expenditure guidance for the mine remains unchanged . The company's actively evaluating options to extend production beyond 2027 . This initiatives could potentially reduce the previously disclosed production gap and enable Casa Verde to remain a sustaining cash flow contributor to the portfolio .
Speaker #7: I'll now turn the call over to Curt .
Speaker #8: Thanks , Carlos . Moving to slide 13 . Our Nevada assets offer opportunities to unlock hidden value . We have three key properties with significant historical production .
Speaker #8: Midas 2.2 million ounces of gold . Historically , with a fully permitted mill and tailings capacity . Hollister 0.5 million gold equivalent ounces within hailing distance of Midas and Aurora 1.9 million ounces of gold historically with an on site 600 ton per day mill .
Speaker #8: All properties have significant exploration potential . Minimal regulatory hurdles , and existing infrastructure . We're developing a comprehensive Nevada strategy with an exploration update on Nevada .
Speaker #8: Keno Hill and Greens Creek coming later this month that will shed light on our Nevada exploration progress . And what's to come next year .
Speaker #8: You can expect a heightened level of activity in Nevada next year as we work to surface value from this exploration portfolio . I'll now turn the call over back to Rob .
Speaker #5: Thanks , kid . I'm pretty excited . What you and your team are doing in Nevada . So keep up the good work .
Speaker #5: We've got four strategic priorities that flow directly from our transformation . The first is long term value creation at Keno Hill , prioritizing , permitting , and execution at current prices and even at lower prices .
Speaker #5: This asset is expected to generate material returns at 440 tons per day , and has expansion optionality beyond that . Second , continued deleveraging and strengthening our balance sheet with focus on free cash flow generation across all assets .
Speaker #5: And we've proven in Q3 that we can do this rapidly when the metal prices supported . Third , establish a capital allocation framework , balancing further debt reduction , organic growth , investment , exploration and potential shareholder returns .
Speaker #5: And fourth , portfolio rationalization , continually assessing which assets deserve more capital and where to monetize non-core assets for higher return opportunities . With that , I'll turn it over for questions .
Speaker #3: At this time , I would like to remind everyone , in order to ask a question , press star , then the number one on your telephone keypad .
Speaker #3: Please limit your question to one and one follow up . We will pause for just a moment to compile the Q&A roster . Our first question comes from the line of Heiko Ely from AG Wainwright .
Speaker #3: Please go ahead .
Speaker #9: Hey there. Thanks so much for taking my questions. Can you hear me? All right.
Speaker #5: We can hear you .
Speaker #9: Oh , perfect . Do you want to just go through some of the inflationary factors that you're seeing at mined at your asset base across the mines ?
Speaker #9: I assume the effects of that have been muted a little bit in the last few quarters , but maybe just go through some of the inputs or equipment or tires , whatever , where still seeing inflationary impacts .
Speaker #9: And also maybe some supply chain bottlenecks .
Speaker #6: Hey , good morning Heiko . This is Russell . I'll take this question . And you know , Carlos , please chime in as well .
Speaker #6: But I would say that the biggest inflationary factor we've likely seen , or the biggest , maybe cost pressure that we've seen , is with the metals price environment that we've seen , there's obviously competition for labor .
Speaker #6: And so we have to be competitive as it relates to the , you know , the what we pay for labor . But also filling roles and looking for , you know , where we can't build them .
Speaker #6: We have to fill them with contractors . And that's been a , you know , something , a challenge that we've had now for quite some time .
Speaker #6: It just , you know , with the higher price , you see that getting exasperated . But then in addition to that , what we do see from pure inflationary perspective , you know , I'd say the impact is relatively muted , like you said .
Speaker #6: But we are seeing some tariff costs as we think about capital projects , and maybe there's components that we have to import . And so then we'll see , potential tariffs on those , those types of items .
Speaker #6: We try to minimize that . Right . And we try to find the best competitive bid or the quality of . Component that we're looking for .
Speaker #6: But there's a little bit there as well . Carlos do you have any to add to that .
Speaker #10: Yeah . There's a little bit , you know , related .
Speaker #7: With mining supplies and reagents and you know , air movement , you know , that is mainly , you know , all this stuff related with the workforce consultants and labor .
Speaker #9: I had a different follow up question , but now you got me curious . I mean , you spend almost 9 million bucks on exploration , 8.8 million , I think it was .
Speaker #9: What are you seeing with labor costs related to drilling? And also, what is the timing for getting your assays back? Are there any positive or negative changes?
Speaker #5: You could .
Speaker #8: Yeah . This is this is this is Curt . You know , we have seen some increase in our drilling costs . Really .
Speaker #8: It's associated with labor drillers and drillers , helpers regarding assaying , we've turnaround has been somewhat normal . Of course , you know , this time of the year it starts to tighten up a little bit as people are getting their , their summer sampling programs into the , into the assay labs .
Speaker #8: But it hasn't been as bad as it was a few years ago .
Speaker #9: Cool . I'll get back in queue . Thank you .
Speaker #5: Thanks .
Speaker #3: Our next question comes from the line of Alex Tarantino from National Bank . Please go ahead .
Speaker #11: Hey . Good morning guys , and congrats on another great quarter here . I got two questions . The first one I'm you know , I think your last comment there about providing an update on exploration and projects in about a month or so that may kind of , you know , might have to wait for that , but I'll ask it anyways .
Speaker #11: I mean , obviously your balance sheet has improved quite a bit and your your cash flow outlook has improved . So , you know , when it comes to expiration next year and projects that you're getting excited about , can you give us any kind of taste of where you are ?
Speaker #11: You know what you're thinking about . You know , maybe you got the permit approval to to start doing some exploration as well .
Speaker #11: You made a good mention here of Nevada . I'm just trying to get a better look of a sense of what we can expect there .
Speaker #11: And then my second question , you know , Keno Hill again , a second quarter in a row where you guys seem to have made some some pretty good progress .
Speaker #11: Can you remind me of what metrics you need to see there to get that mind or that project rather declared commercial ?
Speaker #5: Sure . I'll start with exploration . Then I'll hand it over to Curt to fill in some more details . So we're going to substantially increase our exploration budget in Nevada .
Speaker #5: In fact, we've increased it beyond what the starting budget was this year. Quite excited by the results that we're getting there.
Speaker #5: We've also had quite a few dormant projects , which we expect to reinitiate . So things like the Rattler belt targets up in the Yukon .
Speaker #5: This is virgin country with outcropping gossans . And so we need to make some advance there . And then obviously our near-mine exploration where we we continue to do resource extension drilling and seek new discoveries .
Speaker #5: Could you just fill in some more gaps , please ?
Speaker #8: Yeah . Next , next year we're really planning on focusing on on Near-mine and brownfields to start with . That's going to get the biggest part of the of the budget for next year .
Speaker #8: And then we're also doing more greenfields exploration and early stage exploration than than what we've done in the past with a generative exploration program that will be kicked off next year as well .
Speaker #8: You know , we've got some really good targets . We've got some really good property packages . As Rob said , the district is just right for for discovery .
Speaker #8: And we're looking forward to getting in there and spending the summer doing the basic boots on the ground field work . There . And then Nevada as well .
Speaker #8: Go ahead . Rob .
Speaker #5: Sorry .
Speaker #8: And Nevada , I'm really excited about , you know , like we talked about we've got infrastructure , minimal requirements on the permitting side of things .
Speaker #8: So that's really in my view , a faster track to production probably from any of our exploration projects outside the mine . The current mine operations areas .
Speaker #11: Yeah . No , that's great . Yeah . Go ahead .
Speaker #12: Yeah . Sorry . Yeah . If I could if I could just add .
Speaker #5: Curt touched on a point that's quite important and that's that we're increasing our project generation efforts . I mean , you know , coming into this , coming into Hecla , one of my observations was that we generally stuck to our knitting .
Speaker #5: We stuck to our existing exploration , our existing mine sites , and focused all of our exploration . There . I've talked about portfolio rationalization , and we will be farming out and divesting some some projects , but we need to replace that .
Speaker #5: And so project generation is an important skill to have . We also need to become a little bit more commercial and create a whole series of options .
Speaker #5: And so you know , look , in the future for us to be doing earnings agreements on other company properties . So that's exploration on Keno Hill .
Speaker #5: Look for commercial production . We've got five criteria that we laid out for commercial production . And honestly , we're really only there on one .
Speaker #5: And that's the silver recoveries right now . Everything else , the completion of the major components hitting 75% of mill capacity , finishing the major CapEx , that's all still in front of us .
Speaker #5: And so our current ramp up plan really has us getting to commercial production around about 2027 at roughly roughly 345 to 385 tons per day .
Speaker #5: And then the following year , 2028 , we'd move towards nameplate throughput . And that's assuming that we get the water discharge approval sorted with the Yukon regulators .
Speaker #5: So in summary , call it 2027 for commercial and 2028 for full nameplate .
Speaker #11: Okay . That's great . Then obviously a lot of exciting stuff to come next year on the expiration front . Looking forward to it .
Speaker #5: Thanks , Alex .
Speaker #3: Again , if you would like to ask a question , press star one on your telephone keypad . Our next question comes from the line of Joseph Reger from Roth Capital .
Speaker #3: Please go ahead .
Speaker #13: Hey guys . Thanks for taking the questions . I had a question on your guidance . You know , obviously raising the low end was great , but it seems like if I look at say like Greens Creek gold production , Lucky Friday , silver and Casas gold production , you'd have to have a pretty weak quarter for Q4 to not hit like above the high end .
Speaker #13: And so I'm wondering if that's just a matter of like company policy not to raise the high end of guidance or is it that you guys are having some expected downtime or anything during the quarter or lower grades or , you know , just help me figure out how to , you know , stay within that high end ?
Speaker #6: Yeah , I think Joe , Joe , this is Russell . I'll I'll take the question . But you know , my colleagues , I , you know , they'll chime in as well if you go look and take a look at the in our earnings release where we have our past five quarters of production , you will see Green Streak , for example , does have kind of a production profile that will vary .
Speaker #6: Right . So you know , Q3 of last year , Q4 of last year , we were less than 2,000,000oz . I think what the guidance would probably tell you is we'll probably see a 2 million or so ounce quarter in a green streak for the Q4 .
Speaker #6: And I think , you know , as we think about our guidance , we try not to guide to the quarter , but we also understand that we've only got one quarter left .
Speaker #6: And that's kind of where our models say we're going to come in .
Speaker #13: Okay , that's fair . And then looking at the really strong price realizations , you guys had in the quarter , I mean , normally there's some fluctuation , but it was abnormally strong this quarter .
Speaker #13: Was there anything specific that led to that or was it just timing of shipments that did you have more like late quarter shipments than early quarter shipments ?
Speaker #13: And that's how the weighted price got , you know , so well above spot , or is there something else I'm missing there ?
Speaker #6: I would I would say I'll jump in again . There's two factors here . One is the timing that you mentioned the Greens Creek .
Speaker #6: You know obviously is our largest silver producer . And they ship once a month . And they tended to ship later in the quarter .
Speaker #6: And as you see , the price change throughout the quarter , it ran up at the end of the quarter , which obviously weighted our sales toward the end of the quarter .
Speaker #6: That's part of it . The other thing that , and I've got an issue here , she's our treasurer . You guys all know her since she did IR recently .
Speaker #6: You know , with the change of the silver dynamics where we've seen the more upside potential , I'll say we've actually started to utilize more callers as it relates to our provisional hedging , which gave us that upside .
Speaker #6: And so I think , you know , in the past , you'd have seen us use forwards . But as we saw the market .
Speaker #6: Change , we started to be more flexible on using callers for provisional hedging , which has allowed for our investors to enjoy more upside .
Speaker #6: So I would say it's both of those factors . Okay .
Speaker #13: All right . That's helpful . I'll turn it over .
Speaker #5: Thanks , Joseph .
Speaker #3: Once again , if you would like to ask a question , press star star one on your telephone keypad . There are no further questions .
Speaker #3: I will now turn the call back over to Robert Krcmarov president and CEO for closing remarks .
Speaker #5: Thank you . Vance . So let me bring this all together . We came into 2025 with a clear mission , and that's transformed heckler from a cash constrained operator into a financially flexible company that can pursue value creating opportunities and I think our results clearly demonstrate that we've executed on that plan .
Speaker #5: And really , there's four things I want to re-emphasize . First is operational execution is solid . All four of our producing assets generated positive free cash flow this quarter .
Speaker #5: Greens Creek and Lucky Friday are performing as we expected . Casa Bharati is tracking cost improvements and Kino Hill has achieved consecutive quarters of profitability and is ramping towards our next production target for 40 tons per day .
Speaker #5: Secondly , record financial performance with quarterly revenue , net income and adjusted EBITDA at all time highs . And we didn't leave deleveraging to chance .
Speaker #5: We combined operational cash generation with strategic capital deployment to fully repay our revolver , redeem $212 million in debt and fully repay the maturing IQ notes from free cash flow .
Speaker #5: And in doing so , we moved from 0.7 times to 0.3 times leverage in a quarter . So that's disciplined capital management , and it gives us the flexibility that we need .
Speaker #5: Third , we have general . We have genuine optionality now . So reserve lies between 12 and 17 years expansion potential at Keno Hill .
Speaker #5: Strategic evaluation of broader portfolio to surface value for shareholders . And the ability to pursue value creating M&A , but only if the right opportunity emerges and that flexibility is what we lacked as a cash constrained company .
Speaker #5: The next phase is about demonstrating consistent execution . Stable cash generation continued deleveraging and disciplined capital deployment . And that consistency is how we recapture our historical value premium .
Speaker #5: And we're confident in our path for strategic direction with four well defined long term pillars that will guide our capital allocation . And we'll elaborate more on that .
Speaker #5: And our strategy day on the 26th of January , our Investor Day , rather . And so summing up , I think there's a compelling valuation with industry leading reserve life peer leading silver exposure and strong jurisdiction quality , all at reasonable valuation that we believe offers significant upside .
Speaker #5: And we're executing on our plans , generating substantial free cash flow and building a foundation for sustained value creation for shareholders . With that , thank you everyone for dialing in and have a good day .