Earnings Call Transcript - FSM Q1 2023

Operator, Operator

Greetings. And welcome to the Fortuna Silver Mines First Quarter 2023 Financial and Operational Results Call. At this time, all participants are in a listen-only mode and a question-and-answer session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Carlos Baca, Director of Investor Relations. Sir, you may begin.

Carlos Baca, Director of Investor Relations

Thank you, Ali. Good morning, ladies and gentlemen. I would like to welcome you to the Fortuna Silver Mines first quarter 2023 financial and operational results conference call. Hosting the call today on behalf of Fortuna will be Jorge Alberto Ganoza, President and Chief Executive Officer; Luis Dario Ganoza, Chief Financial Officer; Cesar Velasco, Chief Operating Officer, Latin America; David Whittle, Chief Operating Officer, West Africa; and Paul Weedon, Senior Vice President, Exploration. Today’s earnings call presentation will be available on our website, fortunasilver.com. As a reminder, statements made during this call are subject to the reader advisories included in yesterday’s news release and in the earnings call presentation. Financial figures contained in the presentation and discussed in today’s call are presented in U.S. dollars unless otherwise stated. Before I turn over the call to Jorge, I would like to indicate that this earnings call contains forward-looking information that is based on the company’s current expectations, estimates, and beliefs. This forward-looking information is subject to a number of risks, uncertainties, and other factors. Actual results could differ materially from a conclusion, forecast, or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in the company’s Annual Information Form and MD&A, which are publicly available. The company assumes no obligation to update such forward-looking information in the future, except as required by law. I would now like to turn the call over to Jorge Alberto Ganoza, President, Chief Executive Officer, and Co-Founder of Fortuna.

Jorge Alberto Ganoza, President and CEO

Thank you, Carlos. Good morning to all. Our business performed well during the first quarter. We recorded net income of $0.04 per share, achieved production of 94,110 gold equivalent ounces on track to meet annual guidance, and our costs were all in line with our guidance projections for the period. The sustained worldwide inflation and corresponding cost creep that we all experienced over the past couple of years have been compressing business margins across the precious metals mining industry. This, despite initiatives to optimize our operations and streamline the business. Gold and silver prices did not provide any significant relief on margins as of Q1 2023. But going into the second quarter, metal prices and margins for the business are looking much stronger. Our average realized gold price for Q1 was $1,893, which is essentially flat against what we realized in the comparable quarter for 2022 and only 7% higher against a realized price two years ago in Q1 2021. For silver, the story is even a bit more challenging. For Q1 2023, we realized $22.52, which is 14% lower against the $26.20 we realized in Q1 2021. Over the last year, our consolidated cash cost per ounce went from $772 per ounce to $923 per ounce, up 20%. Despite all this, our EBITDA came in at a healthy $65 million, and the business generated net cash from operating activities of $41.8 million. After meeting all our sustaining capital demands, funding corporate expenses, and paying $12.9 million in taxes, the business generated free cash flow of $8.7 million. Luis will expand on our management discussion of financial results later in this presentation. Subsequent to the end of the quarter, we have had a few relevant events of importance that I want to mention. In April, at the San Jose mine in Mexico, we had to contend with a 15-day stoppage derived from a union claim demanding an increase in profit sharing beyond what’s stipulated by law. This dispute has been resolved, and operations have resumed. In early May, as well, the Mexican Government approved the new mining reform, which we view as negative for investment in the country, unfortunately. For starters, mineral exploration in open ground becomes an activity reserve for the government, and existing mineral concessions and mine operations will be subject to many questionable articles in the law, which provides for higher costs and uncertainties to investment. We expect there will be many constitutional appeals filed with the Supreme Court of Justice in Mexico against the new law coming from mining companies and other interest groups. Another item to be aware of is our first gold pour at the newly built Séguéla mine, which is imminent, and we expect the pour in the second half of May. On May 8th, we announced we reached an agreement with Chesser Resources to acquire 100% of the company for an all-share consideration, representing approximately 5.1% of the pro forma Fortuna. We expect this transaction to close in late August. Chesser is a great strategic fit for Fortuna. Geographically, the Chesser properties are located in Senegal, which is a near neighboring country to our existing operations in Côte d'Ivoire and Burkina Faso, a mining-friendly jurisdiction, Senegal, and a place where we can leverage our West African management infrastructure and expertise. The Diamba Sud Project is a high-value advanced exploration opportunity with multiple targets still to be drilled, located in the heart of the Senegal-Mali Shear Zone within a few kilometers of Tier 1 mines in the portfolio of gold majors. The preliminary economic assessment carried by Chesser on the Diamba Sud outlined a conventional open pit and CIL process that, even with a sub-million ounce gold resource as it stands today, can deliver robust internal rates of return above our minimum investment thresholds. Paul Weedon, our Senior Vice President of Exploration, is with us. Paul, can you please share our views on the exploration opportunities that Chesser presents to us.

Paul Weedon, Senior Vice President of Exploration

Yeah. Certainly. Thank you, Jorge. As Jorge said, Chesser represents the next step for our West African growth, and it follows the together development. This is a project we have also been tracking for a few years now and watching it grow over time. So just a quick summary. As Jorge indicated, located in Senegal, actually located in the Southeast corner of Senegal, about 680 km from Dakar, easy to access. It’s a well-serviced major regional road that runs through that way, the highway, low security risk, it’s a mining-friendly jurisdiction, and we have several Tier 1 scope mines within 50 kilometers of the project. Chesser’s highlighted a just a Scoping Study highlighting a technically simple open-pit mining concept across several pits, with conventional 2 million tonne per annum operation and with CIL, something we would continue to pursue. We would also anticipate this being a project that we would follow very closely behind the Séguéla development path. Given that when we acquired that four years ago, we had an incurred resource of 100,000 ounces, and today we have seen total growth. So I’d anticipate that we would see a similar growth through Diamba Sud. Just moving across to the geology side, why do we really like it? It’s located in a highly prospective Kedougou-Kinieba Inlier, which is a world-class mining district, host to several large Tier 1 operations, and the Diamba Sud Project itself is located on fertile splays across the main Senegal-Mali Shear Zone, which hosts the majority of those large deposits. I really like the structural complex nature of the deposit that’s there, highlighting regional prospectivity. Additionally, there are a lot of similarities to the nearby Fekola Gold and Gounkoto and Yalea operations of B2 Gold and Barrick, all within a close proximity of those 12 kilometers away. So far, the Chesser team has identified four shallow gold deposits with a very well-developed oxide supergene signature. We would see that evolving further with further exploration work that we are looking to carry out later this year. At the moment, though, it’s a very attractive exploration play for us. We currently hold 625,000 ounces of indication at 1.9 grams and a further 235,000 ounces of inferred at 1.5 grams. We expect those to grow over time. Additionally, there are several new targets that we have identified using their datasets. This is one of the highlights for us. These are a portfolio of new targets available for us to walk up and test. Moreover, there’s potential for a wider regional consolidation, and we see lots of encouragement there. Barrick has an adjacent project, which is quite interesting, and to the Midwest, we have Afrigold's Karakaene project, which also highlights the potential we see in that area. In short, what we see here is an advanced exploration play that we could see moving through the phases to feasibility in a short order of time, with a high potential for growth, simple geology, and a nice degree of structural complexity, adding excitement to the process. It’s a project we think we can carry through fairly quickly and we are looking forward to getting into the ground later this year. Thank you, Jorge.

Jorge Alberto Ganoza, President and CEO

Thank you, Paul. Now, let's move to get an update from our operations from our Chief Operating Officer. David, would you like to provide your update?

David Whittle, Chief Operating Officer, West Africa

Thanks, Jorge. Operations in West Africa continued their solid performance during Q1 2023. The Yaramoko delivered gold production of 26,437 ounces, which was ahead of the mine plan. The additional production contributed to Yaramoko’s all-in sustaining costs and cash costs of $1,509 per ounce and $819 per ounce, respectively, both ahead of the lower end of annual guidance. Séguéla construction remains on time and on budget, with the first gold pour projected for this month. Safety performance at Yaramoko was strong; no injuries were reported. Unfortunately, at Séguéla, an exploration contractor received a finger injury which is later classified as an LTI. In early April, a failure of the line tunneling structure at the Yaramoko portal occurred, which resulted in the loss of access to the underground mine for a period of 27 days while rehabilitation operations took place. Normal underground operations resumed on the 1st of May, with the processing plant treating existing stockpiles throughout the rehabilitation period. Production for Q2 remains strong, and we do not anticipate any issues. Yaramoko underground grade control and brownfields exploration programs continued with encouraging results, extending our planned mining boundaries on the western side of the ore body and increasing stope coming within the existing reserve boundaries. Construction progress at Séguéla continues on time and on budget, with the project being 99% complete as of the end of April. April saw a ramp-up of mining and processing activities as ore was delivered from the Antenna pit, which is the first deposit being mined. Ore was delivered to the crushing and milling circuits, with grade control drilling at the initial phases at Antenna exceeding more than 12,000 meters drilled. Road clearing and construction to the Antenna pit, the second deposit being mined, is currently taking place, with grade control drilling expected to start in late May 2023. All major mining equipment is now being mobilized to the site, and Mota-Engil, the mining contractor, is now in the final stages of the construction of key infrastructure. In parallel with excellent progress on the ground, operational readiness has been achieved. The mining, tactical, processing, and maintenance teams have all been recruited, with Mota-Engil scheduled to recruit the remaining members of the mining team over the coming months. Back to you, Jorge.

Jorge Alberto Ganoza, President and CEO

Thank you, David. Cesar, can you provide your update on LatAm operations, please?

Cesar Velasco, Chief Operating Officer, Latin America

Sure, Jorge. Thank you very much. As you mentioned before, last week, our San Jose mine in Mexico resumed operations after a 15-day illegal blockade. We are now working on the production recovery plan and don’t anticipate any impact on annual guidance at this stage. We are also assessing potential impacts on the additional costs related to the agreements reached with the union, as well as production targets and safety performance for the year. During the first quarter, San Jose produced 1.3 million ounces of silver and 8,231 ounces of gold. These results are slightly below Q1 2022 due to lower grades than planned resulting from higher dilution in one of the sublevel stoping areas and a small delay in the mining sequence at level 800. We anticipate mining better grade stopes in the upcoming months, though. Cash cost per ounce at San Jose has come under pressure from a stronger Mexican peso coupled with higher inflation and lower head grades. All-in sustaining cost for the quarter is in line with annual guidance as lower production and higher cost of sales were offset by timing in CapEx execution. Moving down to Argentina, Gold production at the Lindero mine was 25,258 ounces, aligned with the mining sequence for the quarter. Head grades are expected to improve in the upcoming mining zones as per the mine plan. Mine production for the quarter was 1.6 million tonnes of mineralized material with a stripping ratio of 1.07 to 1, which is aligned with the operations planned for the year of 1.17:1. Lindero's all-in sustaining cost is in line with guidance for the year. Cash cost per ounce was impacted by higher labor and onetime services costs, as well as the effect of lower grades, but partially offset by lower CapEx execution and savings in key consumables. All-in sustaining cost is expected to come in at the high end of guidance for the year. In Peru, despite social unrest and numerous road blockades throughout the country in January and February, operations at the Caylloma mine have not been significantly affected. The operation delivered strong production for the first quarter with 8%, 19%, and 10% higher production for silver, lead, and zinc, respectively. The operation benefited from better head grades at levels 16 and 17, the deepest levels of the mine, and higher tonnes processed during the period. Caylloma’s all-in sustaining cost for the quarter benefited from higher production, lower cash costs, and lower CapEx execution, and is on target to achieve the lower cost range of annual guidance. That covers the three Latin American operations. Jorge, back to you.

Jorge Alberto Ganoza, President and CEO

Thank you. Luis, you want to give your report on financial results, please?

Luis Dario Ganoza, Chief Financial Officer

Yes. Sales were $175.6 million in the quarter, a decrease of $6.7 million or 4% compared to Q1 2021. The slight decrease was driven by 7% lower silver prices and 14% lower zinc prices. The volume effect on our sales year-over-year was neutral as slightly lower gold and silver sales were offset by higher zinc production at our Caylloma mine. Year-over-year, our key financial metrics reflect the impact of inflation rates experienced throughout 2022, as well as lower operating margins at Yaramoko and Lindero related to scheduled decreases in headwinds. These impacts resulted in cash cost per gold equivalent ounce sold of $916 for Q1 2023, which was above the prior year. As I just mentioned, this increase is the combined effect of higher input costs across our operations, more processed tonnage to produce a lower number of ounces at Yaramoko and Lindero, and the negative effect of relative prices in the calculation of gold equivalent production of approximately $29 per ounce. Adjusted net income for the quarter was $13.2 million, down $20 million year-over-year, and adjusted EBITDA was $65.3 million, down $15 million year-over-year. We have disclosed for the quarter consolidated all-in sustaining costs, including corporate expenses, of $1,514 per gold equivalent ounce sold, representing an increase of $230 per ounce year-over-year. The increase is explained by higher costs per ounce sold described before, higher sustaining CapEx of $109, of which two-thirds is from timing of payments in the prior year, with an offset from lower corporate G&A of $24 per gold equivalent ounce sold. For Q2 of 2023, we expect to see somewhat higher consolidated all-in sustaining costs due to a pickup in sustaining CapEx and the stoppage at San Jose. For Q3 and Q4 of this year, we expect to see a trend towards lower levels as Séguéla starts weighing positively on our all-in sustaining cost performance. Moving on to cash flows, net cash from operating activities in the quarter was $41.8 million compared to $33.2 million in Q1 of 2022, as changes in working capital and lower income taxes paid compensated for the lower EBITDA of $15 million year-over-year. Free cash flow from operations was $8.5 million compared to $9.6 million in the prior year. As Jorge emphasized, our reported free cash flow figure is after sustaining CapEx, brownfield exploration, and corporate expenses. It does exclude Séguéla construction and greenfield exploration. Our additions to mineral properties and properties, plant and equipment as per the cash flow statement was $61.5 million, which consisted mainly of $30 million of sustaining CapEx and brownfield exploration, $17.3 million Séguéla construction expenditures, $4.5 million of other preproduction activities at Séguéla, $3.7 million of greenfield exploration, and capitalized interest of $2.8 million. On to the balance sheet, we closed the quarter with a liquidity position of $129.7 million, which includes $45 million undrawn under our existing trade facility as of the end of March. The remaining cash to be spent on the Séguéla construction as of the end of the quarter was approximately $23 million. Finally, our total net debt, including the outstanding convertible debenture, is $166 million, resulting in a leverage ratio of total net debt to adjusted EBITDA of 0.7%. Back to you, Jorge.

Jorge Alberto Ganoza, President and CEO

Thank you. That concludes the management discussion. So, Carlos, for the Q&A.

Carlos Baca, Director of Investor Relations

Thank you, Jorge. We would now like to open the call to any questions that you may have.

Operator, Operator

Thank you. We have a question from Tony Christ with Odyssey Investments. You may proceed.

Unidentified Analyst, Analyst

Thank you. My name is Chris. Jorge, could you give any more specific indication of what you expect from the gold mine starting production this month, what you expect in the future? And the other comment I have is, I imagine you gentlemen are looking forward to a very exciting future.

Jorge Alberto Ganoza, President and CEO

Thank you for the question, Chris. We already provided for 2023 our guidance estimates for Séguéla. We have guided for gold production between 60,000 ounces and 75,000 ounces, and for all-in sustaining costs, we have provided a range that goes from $880 per ounce to $1,080 per ounce. So that is our more immediate estimation based on our best assessment of where we are with the project and how the project has been evolving, which is really on time, on budget. I can only comment on the good work that the entire West African team has achieved and delivered throughout the construction, commissioning, and now ramping up. We expect the first gold pour in the coming days; it’s imminent. Before the end of this month, we should be having our first gold pour. Looking forward at the bigger picture, Séguéla is a flagship asset for the company. It has many key features. One is meaningful production. Second is low costs; it will be our lowest cost mine operation. Third, it has a long life of reserves. Today, as we see the mine based on reserves and the conversion work we are doing on Sunbird resources, we can easily see beyond a decade of mining based on reserves. Beyond that, it’s tremendous exploration potential. We hold a commanding land position in the Séguéla camp; I call it a camp. We have kilometers from north to south along what’s the most prospective and productive mineralized gold belt. Sometimes I am asked, so what follows after Séguéla? My immediate response to that is more Séguéla; we expect that Séguéla can be a much larger mine than what we are bringing into production today, which is already quite meaningful. Thank you.

Unidentified Analyst, Analyst

Thank you. Thank you so much.

Operator, Operator

Thank you. We have another question from Adrian Day with Adrian Day Asset Management. You may proceed.

Adrian Day, Analyst

Yeah. Good afternoon. Two questions, if I may. First one, do you have a sort of budget for exploration at the Diamba Sud Project for the next year? And then the second question would be, I just wondered if you had any high-level views that you can give on the geographic spread of the company? Are you looking to emphasize particular regions, or are you looking purely at each mine, each opportunity as it comes along?

Jorge Alberto Ganoza, President and CEO

Thank you, Adrian. With respect to the Diamba Sud budget, the transaction for the Chesser acquisition is expected to close in late August. We are currently working on our plans for the work that will start once the transaction is consummated in August. That will, of course, encompass an exploration budget; we do not have a budget at this time. I can advance to you that exploration will be a focus for the Diamba Sud work that’s coming ahead. We also will likely be doing some engineering work. Diamba Sud has published a preliminary economic assessment, and Chesser management was already working on a feasibility study. Although the completion of the feasibility study isn’t a priority for us right now, we will look at aspects of the feasibility study, looking to see opportunities for optimization and bringing our own expertise and thoughts to the design and conceptualization of what could be a future mine there. So exploration will be a priority, and we are working on those budgets and plans as we speak. We have some time because the transaction is set to close in August, as I explained. With respect to the more strategic question about geographic spread for the company, that is a key aspect of Fortuna. Fortuna today has a wide geographic spread. We operate in five different countries on two continents. This is a crucial strategic aspect of our business and has been the subject of strategic discussions. You will see Fortuna anchored in the two regions where we are already established, which are West Africa and the LatAm Coziyeram belt. Within these two most productive mining regions, we will focus first in the countries where we already operate: Mexico, Peru, the Province of Salta, which is proud of its mining heritage, Burkina Faso, Côte d'Ivoire, and now expanding into Senegal. We want to leverage the existing infrastructure we have in our management hubs in the City of Abidjan in Côte d'Ivoire and in the City of Lima in Peru. What you should not expect is Fortuna stepping out of these regions. For example, sometimes I am asked about Africa; it is quite a large and diverse place. We are not looking for opportunities across Africa; we are focusing on opportunities in West Africa and near neighbors in the countries where we are already established. The same goes for LatAm. We are not looking for opportunities in North America, Australia, or the Philippines or places like that. Our core areas of focus are where we are already established, and we feel very comfortable growing our business there.

Adrian Day, Analyst

Okay. Thank you.

Operator, Operator

Thank you. Our next question is coming from Justin Stevens with PI Financial. You may proceed.

Justin Stevens, Analyst

Hey, guys. Just a few questions from my side here more on exploration and upside. I know there was some talk earlier this year about looking at Arizaro. Can you just give us an idea of what the timeline might be for the evaluation there and the potential to bring that into the mine life and what will be needed from a permitting standpoint?

Jorge Alberto Ganoza, President and CEO

Yes. I can provide insights on permitting. Arizaro is within our mining concession, and any ore we mine there will be fed to existing infrastructure. So we don’t see any significant issues with permitting. For the exploration side, I will let Paul talk about Arizaro. Paul?

Paul Weedon, Senior Vice President of Exploration

Yes. Thanks, Jorge. Last year, we wrapped up another phase of work on Arizaro. We were successful in expanding the footprint of the mineralization there. We have some optimization of the results, and they are certainly very encouraging. The grades we have got are comparable to what Lindero has provided Arizaro’s long life of mine. There’s not a real need at the moment to continue to advance that because it doesn’t displace anything that’s better value. We planned to meet on Arizaro at the end of the Lindero mine life. There’s still some work to be done on the optimization of that; we have certainly got a reasonable size resource there at the moment. We will continue to look at the structural repetitions, and we see some evidence of a reasonably strong, recently coherent structural overprint that perhaps was not recognized previously. However, we are not really doing a lot of work at Arizaro for the next year or so.

Justin Stevens, Analyst

Got it. That makes sense. Moving over to Séguéla and the things, though, obviously, some pretty nice results coming out of Sunbird lately as you have been drilling off there and good to see sort of that resource bump. Are you planning to put out another updated resource on that, or is just sort of expecting that to fall into the usual annual cadence and line up with the annual reserve resource update?

Jorge Alberto Ganoza, President and CEO

Paul?

Paul Weedon, Senior Vice President of Exploration

Yeah. Thanks, Jorge. We just wrapped up the drilling at Sunbird. That has moved across to the operations team to start the optimization, and introduction into the life of mine later this year. So it will come out as part of our next update next year.

Justin Stevens, Analyst

Got it. That makes sense. And just on that, I mean, obviously, it’s looking like it’s got a decent amount of size there. What sort of potential flexibility do you have in debottlenecking the plant or what do you sort of see as the main bottleneck in the Séguéla process if you were trying to increase throughput?

Jorge Alberto Ganoza, President and CEO

David, do you want to address this question on the bottlenecking of Séguéla’s plant and our plans with respect to assessing the expansion?

David Whittle, Chief Operating Officer, West Africa

Yes, I can. Thanks, Jorge. Within the initially anticipated setup of the plant and DFS, it was expected that we could increase the throughput for the plant around year three to about 1.5 million to 1.6 million tonnes a year. That was ultimately based around changes with grind size and a few modifications through the plant. The design of the plant also has an option for the installation of ore mills and ample pressure later in life to further expand throughput. At the moment, our focus will be to see where the real boundaries exist in the existing plant. We are establishing the operation of the plant, and we are feeding oxide ore right now. It’s a little early to determine what the process is. But by a little later on this year, we should start to refresh ore, and we can begin to look at where some of the bottlenecks exist and potentially remove them. I think Séguéla ore for the following years is going to be a very dynamic environment, with the Sunbird deposit coming into the mining plan and other good exploration opportunities. The mine planning will be dynamic over the next few years, and we anticipate a lot of engineering work to determine where production from Séguéla will go and if the constricting factor will be plan-reflective of the mine. I think both will push each other along for a few good years.

Justin Stevens, Analyst

Great. That’s what we want to hear. That’s it for me, though. Thanks.

Operator, Operator

Thank you. Our next question is from Jasper Wyke with a technical difficulty. Sir, you may proceed.

Unidentified Analyst, Analyst

Thank you, Operator. Most of my questions have already been answered, but I have one question on your recent acquisition of Chesser Resources. You will be focusing on exploration and finding more ounces and more satellite pits at Diamba Sud. But do you have any sort of target in terms of ounces that you would like to secure before moving into development and devising a feasibility study on Diamba Sud? Thank you.

Jorge Alberto Ganoza, President and CEO

Thank you. That’s a good question, Jasper. We have a threshold view that Diamba Sud, with the work that Paul has outlined, has a fair chance to exceed 1 million ounces. This is based on the work in the immediate area of deposits that have been discovered and drilled, as well as some of the other initiatives outlined by Paul. Our view is that it can certainly surpass 1 million ounces. How much beyond that? The drill bit will tell us. Our exploration criteria include a life of reserves that support a mine for over a decade, and we want to see production for a company of our size at a range of 150,000 ounces or 120,000 ounces annually. Regarding physical metrics, we would like to see every asset with a minimum of 10 years of reserves. Additionally, we have financial thresholds concerning our expectations on internal rates of return. On the physical side, we believe that with grades over 1.5 grams, we can achieve low-cost ounces using conventional mining and processing. Our focus needs to be on exploration to reach beyond the 1 million-ounce expectation. Today, it's a sub-million-ounce deposit, and as we stated earlier, the exploration team sees a resemblance in the growth potential to Séguéla when it was acquired back in 2019, when Séguéla was a 400,000-ounce deposit. Today, it’s nearing 2 million ounces and continues to show potential to grow. We see a similar opportunity here.

Unidentified Analyst, Analyst

Thank you, Jorge. That was a great answer, and you provided some great color on that. Sounds reasonable. That was it for me, Operator.

Operator, Operator

Thank you so much. At this time, we have no further questions on the telephone lines, so I will hand the call back to management.

Jorge Alberto Ganoza, President and CEO

Thank you, Ali. If there are no further questions, I would like to thank everyone for listening to today’s earnings call. Have a great day.

Operator, Operator

Thank you. This does conclude today’s conference, and you may disconnect your lines at this time. We thank you for your participation.