Earnings Call Transcript - ERO Q2 2021

Operator, Operator

Thank you for your patience. This is the conference operator. Welcome to the Ero Copper Second Quarter Results Conference Call. All participants are currently in listen-only mode and the conference is being recorded. There will be a chance to ask questions after the presentation. I will now turn the call over to Noel Dunn, Executive Chairman of Ero Copper, for opening remarks. Please proceed.

Noel Dunn, Executive Chairman

Thank you, and good morning, everyone. The news release announcing Ero's second quarter 2021 financial results is available on our website as are financial statements and MD&A for the three and six months ended June 30, 2021. As usual, we will be making forward-looking statements on this call that involve risks and uncertainties concerning the businesses, operations and financial performance of the Company. We would refer you to our most recent AIF available on our website, on SEDAR and EDGAR, for a discussion of the risk factors of our business and their potential impact on future performance. Unless otherwise stated, all amounts are in U.S. dollars. Joining me on the call today are David Strang, Ero's Cofounder and Chief Executive Officer; Wayne Drier, Chief Financial Officer; Makko DeFilippo, President; and Paul Nehlen, Vice President, Corporate Development and Investor Relations. Whilst uncertainty surrounding the path of the COVID-19 delta variant clearly still exists in Brazil, we are seeing encouraging signs relative to the case count peaks of mid-2020 and early 2021. We're also seeing increased rates of vaccination across our operations, and fewer people are away from work due to suspected exposure. All our preventative measures remain in place. And for reasons of prudence, we have no intention of lifting them in the near term. We are pleased with our operational and financial results in the second quarter and the first half of the year as well as the progress we've made in advancing several strategic objectives. At the end of the quarter, we announced a $110 million gold stream transaction with Royal Gold on our NX Gold Mine. The transaction, which we expect to close in the very near term, unlocks some of the value we have long identified in the NX Gold Mine, whilst forming a strategic partnership, highly aligned with our plans to further develop and organically grow the NX Gold business. The proceeds from the transaction, combined with our record cash balance of $138 million, will be used to support our organic growth objectives there at MCSA and in the development of the Boa Esperançа project. Whilst the NX Gold stream transaction closes, our pro forma cash balance will be approximately $240 million. We will be in a net cash position of approximately $80 million, giving us excellent balance sheet strength and liquidity to continue to execute on our strategy. In June, we completed the dual listing on the New York Stock Exchange, which, we believe over time, will broaden our shareholder base and enhance trading liquidity. We also published our 2020 sustainability report during the quarter, highlighting our ESG performance as well as our goals and initiatives related to responsible and sustainable mining. This year, we highlighted the formation of a climate change steering committee comprised of a multidisciplinary team at both executive and operational levels. Over the coming years, we expect this group to contribute greatly to further advancing our sustainability strategy, such as setting emission reduction targets and other performance goals. As we look ahead, we are bullish on the outlook for copper prices as the need to address climate change accelerates globally. Renewable energy initiatives, global electric infrastructure spending and the post-pandemic economic recovery are all copper-intensive activities. Furthermore, a realistic analysis of the supply side of copper shows it to be as challenged today as we anticipated it would be when we acquired MCSA in 2016. Increased environmental awareness amongst governments and stakeholders only compounds these challenges in our view. I am as excited as ever for what the future holds for our company, and I'm grateful to our colleagues for the fantastic work they do to support our production and organic growth, while continuing to manage the evolving challenges associated with the COVID-19 pandemic. I will now pass the call over to David to provide a brief review and update of our operations, after which Wayne will provide a summary of the Company's financial performance. As usual, our team will be available for questions immediately following the call.

David Strang, CEO

Thank you, Noel. I would like to reiterate Noel's sentiment as our team, and especially our colleagues in Brazil, have worked incredibly hard to advance our strategic objectives, while continuing to deliver strong operating and financial results despite a dynamic operating environment. During the second quarter, we reported record cash flow from operations of $85.1 million, driven by strong performance across each of our operations, aided by copper and gold price tailwinds. At the MCSA Mining Complex, we processed over 550,000 tonnes of ore at an average grade of 2.13% copper and achieved a second consecutive quarter of record metallurgical recoveries averaging 92.5% during the quarter. As expected, mill throughput volumes decreased relative to the first quarter due to the first phase of scheduled mill maintenance, which was successfully completed shortly after quarter end. The impact of mill maintenance on copper production was offset by higher-than-forecasted grades due to a continuation of favorable grade reconciliations and planned stopes as well as supplementary mined tonnes from a value engineering project that seeks to identify and mine high-grade areas within the upper levels of the Pilar Mine that were previously believed to be sterilized. This program is yet another data point highlighting the ingenuity and commitment of our operations team in Brazil, supported by our newly created technical services team here in Canada. We also achieved quarter-on-quarter increases in both metallurgical recoveries and concentrate rates, demonstrating ongoing benefits from the HIG Mill we successfully installed last year. Enhanced milling capacity generated by the HIG Mill helped to mitigate the impact of mill maintenance on throughput volumes during the quarter and allowed us to fully evaluate the true performance potential of the HIG Mill that will significantly aid us in the detailed design of returning the overall mill to its original capacity. The strong operating performance across the MCSA Mining Complex contributed to a quarterly copper production of 10,898 tonnes of copper and quarterly C1 cash costs of $0.72 per pound of copper produced, bringing copper production for the first half of the year to 23,536 tonnes at an average C1 cash cost of $0.60 per pound. We recently started Phase 2 of planning mill maintenance at MCSA and anticipate more throughput volumes in the third quarter to be similar to those achieved in the second quarter. While we expect our ongoing value engineering program to continue to provide some supplementary production from the upper levels of the Pilar Mine, overall, we expect that grades will normalize to within our guidance range for the balance of the year. As a result of our strong first half production performance, we are well positioned to achieve our unchanged full-year copper production guidance, albeit towards the higher end of our 42,000- to 45,000-tonne range. Similarly, we are also tracking towards the lower end of our full year C1 cash cost guidance range, which remains unchanged at $0.75 to $0.80 per pound of copper produced. The NX Gold Mine delivered a strong quarter as well, producing 10,377 ounces of gold and C1 cash costs of $499 per ounce and all-in sustaining costs of $660 per ounce. The 10% quarter-on-quarter increase in gold production was driven by higher tonnes milled and strong metallurgical performance, which more than offset lower grades mined and processed during the quarter. While we are tracking ahead of our full year production guidance range with approximately 19,800 ounces of gold produced in the first half of the year, at all-in sustaining costs of $650 per ounce, we anticipate modestly lower grades in the second half of the year due to planned mine sequencing and a normalization of recovery rates. As a result, we are well positioned to achieve the high end of our reaffirmed production guidance range of 34,500 to 37,500 ounces and the low end of our unchanged all-in sustaining cost range of $875 to $975 per ounce of gold produced. Our exploration programs generated exceptional results during the quarter and continue to validate our exploration-driven organic growth strategy. On the Curaçá Valley, we drove the best intercept on a grade meter basis in the history of our company within the deepening extension of the Pilar Mine. The 67-meter intercept grading over 9% copper was located beneath the current inferred mineral resource shell and highlights the sheer size of the super part style mineralization at depth. As drilling within depth has continued to highlight better-than-expected results, we have initiated a design review of the project, including shaft and development parameters to review value-enhancing opportunities and ensure we are maximizing the value of this incredible deposit. We are also continuing to make good progress in our regional exploration program and are evaluating a number of opportunities that we hope to share in our next quarterly exploration update. Our exploration results from NX Gold Mine were also exceptional, including the best hole drilled in the history of the mine, located beyond the limit of the current inferred mineral resource. The results highlight the intrinsic value of the mine that we have always recognized and will broadly speak to the potential of the NX Gold land package, which remains largely unexplored. In the weeks ahead, we look forward to releasing the results of our optimization study for the Boa Esperançа project feasibility study as well as our third quarter exploration results. I will now turn the call over to Wayne to discuss our financial performance for the quarter.

Wayne Drier, CFO

Thank you, David, and good morning, everyone. As David mentioned, our strong operational performance, combined with elevated copper and gold prices, drove record quarterly cash flow from operations of $85.1 million during the quarter. While copper sales volumes were down quarter-on-quarter due to lower production volumes and a higher finished goods inventory at the end of the quarter, cash flow from operations did benefit from higher metal prices and an $11.6 million reduction in our accounts receivable. Despite the lower copper production, as well as a stronger Brazilian real that drove higher unit costs compared to the first quarter, MCSA delivered C1 cash costs of $0.72 per pound of copper produced during the second quarter, resulting in average C1 cash costs of $0.60 per pound for the first half of the year, well ahead of our full year guidance range of $0.75 to $0.85 per pound of copper produced. Gold sales were flat quarter-on-quarter despite the higher gold production due to an increase in finished goods inventory at the end of the quarter. Gold C1 cash costs and all-in sustaining costs per ounce produced was up slightly compared to the first quarter due to the strengthening of the real, but we're still ahead of our full year cost guidance. Adjusted EBITDA for the quarter was $85.5 million, bringing adjusted EBITDA for the first half of the year to a record $172.2 million. The strengthening of the Brazilian real during the quarter allowed us to opportunistically settle a portion of our forward-dated foreign exchange derivative contracts, resulting in a realized loss of approximately $6 million. We continue to expect foreign exchange settlements to amount to somewhere between $4 million and $6 million per quarter, provided the Brazilian real stays relatively range bound at these levels. Our headline net income for the second quarter was $84 million or $0.90 per fully diluted share. After adjusting for noncash components, including unrealized foreign exchange gains, our adjusted net income was $53.7 million or $0.58 per fully diluted share. Our balance sheet is the strongest it has ever been, with cash and equivalents of $138 million, resulting in less than $20 million of net debt at the end of the quarter. As Noel mentioned, upon closing of the NX Gold stream, our pro forma cash balance will be approximately $240 million with a net cash position of approximately $80 million. While we intend to maintain strong available liquidity to support our growth projects, we do expect to pay down a meaningful portion of the revolver during the third quarter to reduce ongoing interest payments in the near term. I'll now hand the call back to Noel to share some final comments.

Noel Dunn, Executive Chairman

Thank you, Wayne, and everyone who joined the call today. Before we open it up to Q&A, I'd like again to congratulate the Ero team and our colleagues in Brazil for delivering another strong quarter. In running our business, we remain focused on return on invested capital. I am pleased to note that at the end of this 6-month period, our ROI fee, as calculated by Bloomberg, has averaged approximately 40%, which positions us well versus any other company in our industry worldwide. And why is this important? Simply because a company that consistently delivers high returns on shareholders' capital can afford to finance growth without diluting those very same shareholders with repeated capital calls and/or creating undue risk by taking on high levels of leverage in its capital structure. This is, to us, absolutely paramount in how we run our business. We are well positioned to deliver on our full year guidance and look forward to building further momentum with the release of our Boa Esperançа optimization study. Thank you for joining the call. We will turn it back to the operator to open the line for questions.

Operator, Operator

The first question comes from Jackie Przybylowski, with BMO Capital Markets.

Jackie Przybylowski, Analyst

Congrats on the really strong quarter. Your cash balance is growing, and especially, I guess, after the Royal Gold stream transaction closes. Can you talk a little bit about what your plans are for that cash in terms of the growth projects? Should we see more investment, whether it's at MCSA? I don't know if that's going to be in the mill or in the exploration program? Or should we expect some of that to be going to Boa Esperançа in the sort of near to medium term?

Wayne Drier, CFO

Thanks, Jackie. Regarding our cash balance, it's a great position for us. Through our strategic financial efforts with the NX Gold stream, we're now well-equipped to support our growth plans in the Curaçá Valley, which currently focuses on the deepening project and the shaft sinking. We're also in a solid position to advance Boa Esperança and its development. As Noel mentioned, we are very focused on returning capital to our investors. This involves determining how we can deliver the highest value to our shareholders while ensuring our capital structure serves their best interests. With the cash we currently have, which we expect to increase in the upcoming quarters, Anthea and her team will aggressively push the deepening project forward while also beginning to tackle the Boa development. However, we have not yet received board approval for Boa, nor has the market been briefed on the findings from the Boa study. We believe this project will prove to be promising, and we are prepared to secure funding for it.

Jackie Przybylowski, Analyst

And maybe just a quick follow-up on that. When do you expect that board approval would be decided? Is that shortly after the study? I think the study is kind of due late August, early September, if you remember correctly? So should we expect an announcement on that, sort of next month timeframe?

Noel Dunn, Executive Chairman

Yes, Jackie, we plan to release it to the market over the next month to month and a half. The board will have reviewed the study by then. We are aware that there is some optimization work we want to complete regarding the study, and we aim to finalize that early next year. I can’t predict exactly what our board will decide, but as a management team, we are hopeful to start breaking ground on Boa in the first half of next year, assuming everything proceeds as planned.

Jackie Przybylowski, Analyst

That's helpful to understand the timeline. If I could ask one more question before letting someone else take a turn. You've recently released an exploration update, and it appears that you have several strong results from your existing mines. Could you provide some insight into your regional program, beyond your known deposits or mines? How aggressively are you exploring regionally at this point, and what trends are you observing there?

David Strang, CEO

Well, as you know, I don't like orange jumpsuits, so I can't delve too deeply into that topic. Regarding the last quarterly update, there wasn't much information on the regional program. Our lab is operating at full capacity processing drill results. The discoveries we made in the deepening are significantly enhancing our near-term value, and those took precedence in the lab during the quarter, which is reflected in our release. We are encouraged and excited about our work on the regional program. Currently, we have around five to seven drill rigs operating, possibly more. Please keep an eye out towards the end of September or beginning of October for our exploration update. We expect to provide more comprehensive information about the ongoing progress of the regional program.

Jackie Przybylowski, Analyst

That's helpful. I was just looking really broadly for some clarity on whether that was still something you guys were pursuing. So that's really helpful.

David Strang, CEO

Let me highlight that while we don't provide information on a quarterly basis about the regional program, it remains highly important to this company. Mike and the team are doing outstanding work. As I've mentioned before, we are making progress in the region, and our focus is on maximizing the return from the drill bit and our regional program. This program continues to be a key priority for the company, and we are dedicating considerable time and effort to our regional exploration program in the Curaçá Valley. There is no doubt about its significance to us, and we are fully committed to it.

Operator, Operator

The next question comes from Orest Wowkodaw, with Scotiabank.

Orest Wowkodaw, Analyst

I'm interested in your comments about sort of looking at the shaft extension project at Pilar. And just wondering whether that could include a scope up of throughput; i.e., are you considering making that a bigger capacity shaft at this point?

David Strang, CEO

You're really good at reading through the lines there, Orest. Yes. I mean, look, when you're now hitting the numbers that we're hitting in the deepening projects. When we released and talked to the market last year, we've talked about what the size of the project was. You have seen that inferred mineralization. So we've gone a long way to converting a lot of that inferred mineralization already into measured and indicated. And I don't think any of us anticipated that we now see the ore body getting larger and higher grade to depth. And so fortunately, for us as a team, we are able to do this sooner rather than later, to give Anthea and her team the time to evaluate the opportunity now to try to sink the shaft and how we can optimize that shaft. And certainly, there are significant opportunities we see in looking at a potentially wider and deeper shaft than previously thought.

Orest Wowkodaw, Analyst

Can you remind us what the daily throughput capacity was in the existing plan, and perhaps an idea of how much that you're thinking that could go bigger?

David Strang, CEO

So the existing plan was between about 800,000 and 1.2 million tonnes. Right now, Orest, I can't give you the exact capacity of where we think it could go to. But there are other intrinsic value-adds that the shaft can bring in, both with regards to the movement of people and the movement of waste that previously were thought to have to go through the ramp. And so while we do anticipate potentially some increase in production, there are other value-enhancing opportunities that we've seen now with the shaft that the previous share limited us on in terms of transportation of materials, people, and waste that previously have been looked at being brought up the ramp. So I think you can look to somewhat of an increase in production. But I think where we see big opportunities is a decrease in operating costs as well.

Orest Wowkodaw, Analyst

And do you have an expected timeline on when you expect to sort of complete that analysis to firm up the plans?

David Strang, CEO

Yes, we'll have it done later this year. We're planning to begin work on the shaft in September, starting with some initial tasks and groundwork, with shaft sinking set to commence early next year. As we proceed, we're focused on a lot of optimization efforts right now.

Orest Wowkodaw, Analyst

And then just a final question. I realize the study on Boa has not been released yet. But could you at least give us an idea of the scale in terms of what you are thinking, roughly speaking, in tonnes per day?

David Strang, CEO

Well, as I will reiterate, again, I do not look good in orange. And so it would be a significant forward-looking statement to be able to give you that. I think what we can say at the moment is, as the work is coming together, we are pleasantly surprised with changes in the resource, changes in the reserve, and those types of things. So unfortunately, I cannot get into that just yet.

Operator, Operator

The next question comes from Stefan Ioannou with Cormark Securities.

Stefan Ioannou, Analyst

Great quarter. Orest partially addressed my question about the shaft, but could you elaborate further? Considering what you're observing in the deepening extension zone and your thoughts on possibly reassessing its size, are you quite confident about the expected location, or might that also change regarding the timeline for finalizing your plans?

David Strang, CEO

We are very comfortable with the location of the shaft. It is positioned on the side of the ore body, which allows us to access it in the most efficient way possible. We do not have any issues with moving the shaft. We recently completed the drill test work for the shaft layout, reaching depths of over 1,400 to 1,500 meters, and received excellent feedback on rock conditions. Now, everyone is ready to begin the surface work to start erecting the headgear so we can move forward with shaft sinking.

Stefan Ioannou, Analyst

Can you provide an update on the ore sorting efforts you were previously focused on? Is that work progressing in the background, or where do you stand with it?

David Strang, CEO

We have been conducting tests on the innate deposits through the ore sorting system, and we are encouraged by the results. This was one of the last ore bodies we needed to evaluate. Moving forward, we are exploring the best ways to optimize the use of ore sorting, and it is important for us to convey our ongoing opportunities in various areas. The use of ore sorting will be aligned with maximizing the return on invested capital for our shareholders. As we develop the Vermelhos District, particularly with the Siriema and N8/N9 deposits, as well as the emerging UG 3, we are identifying significant opportunities in how we stage the production of each deposit and implement ore sorting technology. We are committed to optimizing this process, which will affect our production plans and ramp-up. Our goal is to achieve the highest upgrade, as the different deposits can vary in ore and grade. On a broader scale, we plan to implement ore-sorting technology within the next 12 to 18 months, starting in the Vermelhos District, and expanding its application to maximize the material we can extract from our various deposits.

Operator, Operator

The next question comes from Bryce Adams with CIBC.

Bryce Adams, Analyst

Thanks for taking the questions. I have two. First on the Boa update in a few weeks or in the next month, will that include the results of the updated feasibility? Or it's an update with discussions around the trade-offs and the progress made so far? I just want to be crystal clear on that. I got a little confused by the press release.

David Strang, CEO

Yes, no problem, Bryce. When we worked on updating the feasibility study for Boa, we identified several areas for optimization. These are currently being evaluated, and significant changes have emerged regarding the operation's production. The information we initially released in the press release will cover all of these updates. Additionally, 45 days after that, we will issue the updated technical report reflecting these changes. In terms of a comparison, we will aim to provide as much information as possible in comparison to the previous study. As always, this will be a comprehensive release, offering detailed news on the results of the study.

Bryce Adams, Analyst

Second question is another clarifying one, and it's around the grades at MCSA. There's a comment in there saying we should expect lower grades in the second half and that those grades would revert to the guidance of 1.75%. Is that the full year? You're saying that the full year grade should average up to 1.75, or the second half would be 1.75?

David Strang, CEO

I think the second half will be close to 1.75. As you know, we have had positive grade reconciliation during the year from some of the stopes we've been mining. The mining sequence was moved around due to some development issues that we had. And so we mined some stopes that were going to be mined in the latter part of the year first before that, and we've got positive reconciliation due to grade. As we continue to move forward, though, as we've highlighted, we have this engineering optimization study. We have availability and starting to identify areas in the upper levels of the mine that were previously thought to be sterilized but have significant grade. And we'll bring those in as and when the team feels comfortable to continue to mine them. I think the best thing we can tell you right now is the second half year grades will be closer to what we mined at the beginning of the year, what we guided at the beginning of the year.

Operator, Operator

The next question comes from Dalton Baretto of Canaccord.

Dalton Baretto, Analyst

My first question is whether you still expect to release a 43-101 this year.

David Strang, CEO

No.

Dalton Baretto, Analyst

Can you give anything more?

David Strang, CEO

So let's discuss 43-101. The requirements for 43-101 are twofold. First, when you are a new publicly listed company on the main exchange, you are required to issue a new technical report or 43-101 technical report annually for the first three to four years. After that, you're required to provide a technical report or update only if there is a material change to your operations. Currently, we do not expect to publish a new 43-101 for the Curaçá Valley project at the end of this year. We will, however, release a new technical report for Boa and do not plan to publish a new technical report for NX Gold. We are transitioning to guidance like our industry peers and are currently assessing the type of guidance we will offer, likely a 3-year forward guidance process. Ideally, we would like to provide more detailed and longer-term guidance, but we must ensure that any guidance beyond the 3-year period is realistic and achievable. As a dynamic company, we are focused on fully utilizing the plant at MCSA, and it is important that we set realistic expectations for any guidance given to the market.

Dalton Baretto, Analyst

And so would you put that out, then, early next year? Or are you still looking at the same time frame, kind of late November-ish?

David Strang, CEO

I think right now, the best I can give you is early next year. But we reserve the right to adjust that to later this year.

Dalton Baretto, Analyst

Second one is just on your balance sheet and kind of where it stands right now. It's in a great position, as you said. When you look at the Company going forward, as you look at your internal ROIC calculations, is there an optimal debt level that's assumed that you'd like to see?

David Strang, CEO

I'm going to give it over to Wayne to answer that. He's smarter than me.

Wayne Drier, CFO

Hey, Dalton. I think Noel, David, and I have made it clear that we know how to run this business. We have a lot of experience in the industry, and we're all mindful of utilizing leverage wisely. When we assess our situation, you will never see us take on substantial debt. We aim to be more innovative, and the NX stream exemplifies our creativity in generating liquidity for growth projects effectively. Regarding an ideal debt level, there are numerous factors to consider. We need to evaluate the market and the medium to long-term outlook for commodities at that time to determine what feels comfortable for us. It's fair to say that we are currently underleveraged. However, we recognize that there are significant growth projects ahead of us. Once we have more clarity on our needs over the next two to three years, we will establish the right capital structure, but we will always proceed with caution as a team.

Noel Dunn, Executive Chairman

Let me expand on that. As one of the lowest-cost copper producers globally, we can handle a higher level of leverage compared to some of our higher-cost peers. When we consider return on invested capital, we rely not only on our internal metrics but also on Bloomberg data, which our key shareholders closely monitor. We are open to issuing equity and borrowing funds, but it’s essential to allocate that capital toward projects that can justify the return on invested capital and yield high returns. In the past, we have criticized the mining industry for chasing growth without accurately calculating the impact of the equity and debt being taken on. When metal prices decline, this often leads to significant difficulties. Given our cost structure, we can support a substantial amount of debt and feel confident in our position. The crucial question is what opportunities are available and how we can leverage them while maintaining our return on invested capital discipline. Over time, companies that adhere to this discipline typically receive higher valuations and stronger support from shareholders.

Dalton Baretto, Analyst

Just maybe one last one for me. This one's on the PGMs in the Curaçá Valley. It doesn't look like they're associated with the higher-grade, top-end steps. Where do we stand here in terms of our understanding?

David Strang, CEO

Dalton, I wouldn't say that's necessarily the case. We're still in the learning phase regarding this topic. While we do observe mineralization, our recent news release mentioned some redefined mineralization linked to the deepening project and nearby lenses. Additionally, we've discovered PGMs on the periphery of these lenses. Presently, we're very much in a learning mode concerning the PGM potential in the district. Our program has fallen behind schedule due to COVID, though our lab is enhancing its capacity for internal sampling. It's noteworthy that some groups purchasing concentrate have expressed interest in developing PGM opportunities, which we will assess as we progress. However, for now, I wouldn't factor PGMs into any valuation for the Company; instead, I see it as an intriguing opportunity that we are working to clarify and understand better.

Operator, Operator

The next question comes from Grant Moenting, with Scotiabank.

Grant Moenting, Analyst

I noticed the high copper margins. That being said, I think Dalton kind of took my question about the PGMs. However, I was wondering if there might also be an evolving nickel story in the background in the Curaçá Valley, as you mentioned you’re still in the learning process there.

David Strang, CEO

Yes. Nickel continues to be challenging for us. We are observing some interesting developments regarding nickel, but we haven't reached a clear breakthrough yet. Mike and the team are still integrating it into the regional program. We have been assessing a couple of nickel opportunities and continue to do so in the Valley. However, we haven't reached the point where we can implement a nickel stream in the plant and start recovering nickel, despite Anthea's eagerness. That's where we stand for now.

Operator, Operator

This concludes the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Noel Dunn, Executive Chairman

Thanks, operator. And again, we can't thank you all enough for coming on the call and listening to us: all the analysts who cover our story, all of our shareholders who are on the call and all potential investors. We really appreciate all of your time and your efforts with regards to following our company. And we continued to look forward to a great second half of the year and continue to move forward in a very, very exciting copper market. Thanks again, everybody. And have a good day. Bye-bye.

Operator, Operator

This concludes today's conference call. You may disconnect your lines. Thank you for participating.