Earnings Call Transcript - HYMC Q3 2020

Operator, Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Hycroft third quarter earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tracey Thom. Thank you. Please go ahead.

Tracey Thom, Vice President, Investor Relations and Corporate Communications

Thank you, Lindsay. Good morning, everyone, good afternoon, depending on where you are. Thank you for joining us. Today, we will be discussing our third quarter 2020 results for which we filed our Form 10-Q with the Securities and Exchange Commission and issued a press release this morning. The press release can be found on our website. Please read the press release and listen to this call in conjunction with reviewing the Form 10-Q, which contains additional disclosures. Also, please note that some information provided during this call may include forward-looking statements that involve risks, uncertainties, and assumptions. Even if the risks or uncertainties have materialized or the assumptions prove incorrect, these results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking. A discussion of some of the risks, uncertainties, and assumptions are set forth in more detail in our press releases and SEC filings, including the most recently filed Form 10-Q. We assume no obligation and do not intend to update such forward-looking statements. I'll now turn the call over to Diane Garrett, President and CEO.

Diane Garrett, President and CEO

Thank you very much, Tracey. I'd like to welcome everybody to the Hycroft Mining third quarter conference call. I am Diane Garrett, President and CEO of Hycroft Mining as of September 8. With me today in Winnemucca, Nevada is Stan Rideout, our Executive Vice President and Chief Financial Officer; our recently appointed new Vice President and General Manager, Mike Eiselein; and Tracey Thom, Vice President, Investor Relations and Corporate Communications; and on by telephone in our Denver office is Jeff Stieber, Senior Vice President, Finance and Treasurer. Happy to see all of the many callers on our line this morning, so we welcome all of you. Thank you for being with us as we lay out the details of our third quarter and share our observations and future plans. This is my first address to all of you in the market as the new President and CEO of Hycroft, and I'm excited to talk to you today. I know I've spoken quite a bit with many of you on the phone already, and I certainly welcome all the calls. I think a lot of people have my contact details, so feel free to reach out anytime. We're always available to our shareholders and interested parties. But today, I'll be communicating my views of the projects since coming on board, the changes we've made, actions taken, and our plans going forward into 2021 and beyond. Following my opening comments, I will ask Stan Rideout to review the highlights of our third quarter financials, followed by Mike Eiselein, who will provide an operations update, and then we'll open the call for questions from the audience. So first and foremost, let me say that I am very excited to be part of this project. It is a world-class asset. Our gold and silver mineral reserves and resources place Hycroft among the largest-scale mines globally, situated in a jurisdictional safe area, which is becoming increasingly important in our industry. Our current life of mine reserves are estimated at just over 1 billion tons, grading 0.011 ounces per ton gold and 0.425 ounces per ton silver, generating a current mine life of approximately 34 years, as indicated by our technical study. Our total resources, exclusive of the reserves, currently stand at around 393 million tons grading 0.009 ounces per ton gold and 0.277 ounces per ton silver. Additionally, there are numerous opportunities for increasing and expanding these resources and reserves. While our focus is on continuously improving our proprietary 2-stage sulfide oxidation and heap leach process, we also believe there will be opportunities to expand our reserves and resources throughout our district as well. Our first priority is the continued startup and subsequent ramp-up of our operations. In my first 2 months leading this team, I've spent nearly all my time at the mine site and I anticipate continuing to reside in Winnemucca for the foreseeable future. I have been working on the ground to fully understand our project, our processes, our strengths, our challenges, and the opportunities facing the Hycroft mine. In addition to strengthening the team, we have identified many areas for cost savings, such as enhancing operational efficiency, improving equipment reliability, better management of our contractors, and improving maintenance to reduce downtime, which leads to increased productivity. Our emphasis on cost control has been a top priority and will continue as we move forward. There has been significant transition at Hycroft, as you have noted since the beginning of the year, including numerous management changes in addition to going public just 5 months ago. Since joining Hycroft, we have focused on building a strong, experienced team and have been fortunate to attract several highly experienced individuals with proven track records in their respective disciplines. I am pleased to report that we have been receiving an overwhelming number of inquiries from seasoned technical mining professionals across all departments, all eager to be part of the Hycroft journey. This is a positive indicator for us, and a considerable vote of confidence in the project and the efforts we're making. As we announced in October, Stan Rideout, whom I have previously worked with, joined Hycroft as our Executive Vice President and Chief Financial Officer. He has a diverse background in project financing, with over 20 years at Phelps Dodge and many years at Romarco Minerals, overseeing project financing. Additionally, we promoted Mike Eiselein to Vice President and General Manager. Mike joined Hycroft in August 2020 and quickly made the necessary changes to our process structure and the crushing circuit, addressing some operating challenges as well as the sulfide oxidation and heap leach process. His deep knowledge and experience with these deposits and optimization programs are perfectly aligned with Hycroft's current developmental stage. I have been impressed by his strong leadership skills, a critical asset for us as we move forward. The changes we've instituted within the company, particularly in management and others I will discuss shortly, are designed to better align the company's goals with our execution of plans. Stan, Mike, and numerous other additions to our process team are essential as we advance the project. We are building a new culture at our site, emphasizing ownership, excellence in operating performance, and a high priority on safety, which remains our number one focus. This aspect needed significant attention when we joined the team, and we are making positive strides in this area. We will continuously work to improve our safety performance because the well-being of our employees is paramount. Going forward, we will strengthen our leadership team to ensure the right people are in the right positions, thereby ensuring success for our shareholders as we advance the project. To support these initiatives, we have recently set up a technical team, comprising key site and technical employees from the process department. We have also brought on board John Marsden, a world-renowned metallurgical and processing consultant with specific expertise in gold and silver extraction. He authored the book 'The Chemistry of Gold Extraction,' a standard reference in the industry. We are thrilled to have him on our team. Furthermore, we have partnered with Hazen Research, a familiar research and development laboratory in the industry, and Forte Dynamics, a multifaceted engineering and consulting firm specializing in open pit and heap leach processes, possessing leading expertise in heap leach stacking and modeling. This collaboration will be vital as we transition from pre-production stages to commercial size production on the new leach pad we are currently constructing. Now, for the benefit of our existing and new shareholders, along with those interested in Hycroft, I want to spend a few minutes recapping what has transpired since the technical report was completed by M3 Engineering in the summer of 2019. I believe understanding our history is crucial for grasping our current position and our future plans. The sulfide oxidation chemistry is well understood in the industry, utilized in many mines concerning roasting and pressure oxidation plants presently operating in this region. What makes our project unique is that we perform sulfide oxidation under atmospheric heap leach conditions due to the low-grade nature of our ore. Capital and operating costs are significantly lower for heap leaching compared to roasting and autoclaving. Hazen Research conducted considerable work for Hycroft on the alkaline oxidation process when the predecessor company investigated the AAO process or ambient alkaline oxidation. Following their work, M3 Engineering was engaged to complete the technical report for our current 2-stage oxidation and heap leach technique, finished in July 2019, which you can find on our website. Chemically, we know sulfides can be oxidized in an alkaline environment. Hycroft is pioneering this capability on a large commercial scale via this heap leach process. It's critical for our process to model the oxidation to gold recovery relationships in larger operational environments. This work is ongoing as we continue gathering data from our pre-commercial pads. Our process requires careful management of multiple factors, including alkalinity, pH, moisture, oxygen, iron levels, and more. Following the technical report filed in the summer of 2019, prior management conducted two 50,000-ton pre-commercial pads of sulfide material, with referenced results on our website. After stacking those first two sulfide commercial pads, the company began stacking multiple 50,000-ton test pads of predominantly transition material. The reason for this is due to having substantial transition and oxide material needing processing to access sulfides. Hence, since the initial two test pads containing sulfide material, we've predominantly been adding transition material to the pre-commercial pads. As noted from our initial two quarters of operating and financial results, and reflected in our current quarterly results disclosed this morning, several factors contributed to lower gold equivalent production, sales volumes, and high operating costs, which is why we've not been able to generate positive net income to date. Operationally, the challenges were substantial. For instance, the crushing facility required major maintenance and could not consistently produce appropriately sized crushed material for the pad. There was mismanagement of the process solutions control systems and an undersized reagent distribution system that negatively impacted the delivery quantities of soda ash to the pads. Aging equipment on site often necessitated frequent unplanned repairs and downtime. These challenges present in the first half of the year significantly impacted our production volumes and revenues. Since then, however, we've added new members to our process team, including Mike Eiselein and another process manager. They were brought in early in the third quarter and have addressed many of the operational issues that plagued the project in the first two quarters. Mike successfully fixed our crushing circuit in record time, and we greatly appreciate his attention to this matter. We continue to make improvements throughout the operation and on site. Because of these enhancements, the skilled team we have assembled, and our focus on increasing productivity, we are highly confident that the current results do not represent our future plans. We're still in the pre-production phase and need to process larger material volumes. We are currently working on plans to ramp that up through 2021. We are confidently progressing towards those plans. The company continues to mine through transitional and oxide material to expose the sulfide. It is worth noting that the majority of our reserves and resources are sulphidic in nature. However, we will periodically encounter transition and oxide materials throughout the mine's life. At present, we are still processing oxide material on the leach pad and placing transition material on pre-commercial pads that are undergoing oxidation, rinsing, and leaching. Our continued sampling of these pads and lab tests on the same material indicate there may not be any additional recovery benefit from oxidizing this material. This has significant implications. We are achieving consistent gold and silver recoveries on transition materials, regardless of oxidation. Although our test work continues, we believe that not crushing, rehandling the material at the crusher, and the associated time and costs will be beneficial. If we can send the transition material directly under leach, there are similar recoveries as observed on the oxidation pads. We caution that this is still under analysis, but currently, we believe it feasible to send the transition material directly to the leach pad. We will gain more clarity in the coming months. As we continue encountering transition and oxide materials throughout the mine life, it's important to understand how these behaviors function in our processing environment. Again, a reminder that Hycroft's future goal is sulfide oxidation of sulphidic materials. We will handle transition and oxide materials accordingly based on the best results observed. The announcement today indicated that our 4 million square foot leach pad for commercial operations will be commissioned towards the end of the first quarter of 2021, primarily due to aspects related to the sulfide oxidation, including recent design changes to our solutions management infrastructure. Additionally, we've encountered delays with electrical and mechanical equipment packages. However, we anticipate that this pad will allow stacking oxide and run-of-mine material by year-end. The timing works well with our mine planning as we prepare to expose and open the sulfide areas. For the remainder of 2020, we expect to continue mining primarily oxide and transition material as we progress through to expose the sulfide material. We plan to place this on existing pre-commercial pads and on the new leach pad once completed by the end of the year while waiting on additional components for the sulfide process. In November, we will begin accessing approximately 200,000 tons of sulfide material in the Central and Brimstone pits, designated for placement on pre-commercial pads—two to four pads depending on available space. We seek to avoid delaying the mining process of the sulfides and initiate treatment accordingly. Significant improvements were made in our process operations during the third quarter, positioning us to manage the sulfide material effectively. Improvements include upgrades to the reagent island, adding an agitator mixing system to enhance soda ash concentration in solutions, and raising the application rate. We've expanded our process team while bringing in experienced consultants. A considerable amount of work lies ahead as we prepare for commercial-scale production while ensuring we have knowledgeable minds around the table. We have improved leach pad operations, data gathering, and reporting protocols. Our ongoing focus on safety is bearing positive results, while we continue to reduce downtime on equipment maintenance. We are currently working on the mine plan, sequencing, and optimization work for 2021 and beyond, driven by our observations and test findings regarding both transition and sulfide materials. While the mine plan budgeting process is underway, we look forward to communicating the details to the market in early 2021, including our productions forecast for 2021 and the years following. Our aim is to maximize gold recovery while perfecting the sulfide oxidation process, scaling up to commercial status. Much work remains in budgeting, planning, and optimizing; we are excited to share progress shortly. Finally, I would like to thank our existing and new shareholders for their tremendous support during our recent successful financing, raising net proceeds of approximately $83 million and welcoming 13 new institutional shareholders to our registry. For those working with our management team, you know we are dedicated to our shareholders, and we will ensure this project progresses correctly. We are all enthusiastic about our future and anticipate sharing our updated plans in 2021 and beyond. Now, I will turn it over to Stan Rideout to walk you through the details of our financial quarterly information.

Stan Rideout, Executive Vice President and Chief Financial Officer

Thank you, Diane. I'm also excited to be part of this team and this great project. Like Diane, I'm spending much of my time and efforts at the site and plan to maintain this presence for the foreseeable future. As described by Diane, Hycroft has continued working at a pre-commercial scale to develop the oxidation and leaching process. This, combined with extensive operational challenges, has resulted in low gold equivalent production, sales volumes, and high operating costs, which is why Hycroft has not generated positive income or cash flow before financing activities. For the third quarter and nine months ending September, Hycroft reported a net loss of $29.1 million or $0.58 per share and a net loss of $113.5 million or $4.92 per share, respectively. For the nine months ending September 30, net cash used in operations was $85.2 million, and net cash used in investing activities was $19.2 million, of which $15.4 million was for the leach pad. The good news is that net financing activities provided $106.6 million of cash. By September 30, we had unrestricted cash of $11.5 million, and shortly after the quarter-end, we closed the public offering for net proceeds of approximately $83 million. We are keenly focused on our cash position and management, and as Mike will highlight, we believe there are opportunities for generating cash through operations while further developing the oxidation and leaching process. Unfortunately, we're early in our planning for next year and therefore not in a position to provide guidance or ranges for expected performance. What I can share is that we are intent on creating a thoughtful, disciplined plan for a successful transition to commercial scale. We're planning to stack and leach some oxide and transition ores without incurring costs related to crushing, soda ash, and rehandling as we advance the process. We have identified opportunities to produce gold equivalent ounces, lower costs, and enhance operating performance that promise attractive cash benefits. I expect the team to continue displaying creativity and resourcefulness with additional opportunities as we further progress in planning. Mike?

Mike Eiselein, Vice President and General Manager

Thanks, Stan. I am excited to share some updates on the various initiatives we are undertaking at the site. As Diane mentioned, we have built a strong core group of individuals with some of the most experienced and knowledgeable operations, maintenance, and support personnel in northern Nevada. Additionally, we continue to receive many inquiries from top talent recognizing that this project could be a game changer for the industry, attracting significant interest. This is an encouraging foundation to build upon as we enhance our operating and support teams. As mentioned earlier, we are transitioning this operation from a pre-production test mentality to that of a world-class producer. My message to the team is that we need to start thinking like producers, which will lead to significant changes and improve processes quickly. Notably, our focus on safety and health has greatly improved prior to my arrival. A substantial amount of effort and resources were applied to improving the safety culture at Hycroft, and this must continue. We have observed a notable decline in our total reportable incident frequency rate to 2.48, down by over 40% from previous quarters. The good news is that we had zero lost-time or reportable incidents in Q3. Unfortunately, we recently experienced a lost-time incident in October when a crew member got a particle of soda ash in his eyes. Our work on advancing the safety culture at Hycroft remains our top priority. Consequently, we now have a fully staffed safety department with a creative approach to engaging leadership and employees. Most of us come from advanced safety cultures in the mining sector, allowing us to implement the best practices we've learned. My goal is to position Hycroft as a leader in safety and health within the region amidst our larger competitors. On the COVID front, we are closely monitoring the situation with exposure and infection rates in our industry and nationwide. We've enhanced our COVID controls by implementing rapid testing and quick returns to ratify exposure events within our group. We have not faced significant COVID-related challenges to date; however, as a precaution, we undertook brief quarantines of a few operational crews following certain exposures. With our rapid testing protocol, any crew members testing negative were quickly returned to work. Operationally, we anticipate numerous improvements across mining and processing. As Diane noted, our crushing facility has seen substantial increases in uptime and reliability. Our proactive maintenance and operations teams are making positive changes. We are focused on employing a reliability-centered maintenance approach across operations and maintenance, and we are bringing in local reliability talent to enhance those efforts significantly. Regarding oxidation leads, we are continually assessing performance concerning our transition ores to devise a financially efficient approach to treating them. We have substantial amounts of transition ore that we need to process as we bridge the gap toward our sulfide resources. We hold optimistic expectations around those plans and will keep you informed in future calls. Meanwhile, we are actively sampling and testing all aspects of our operations to optimize processes and ensure we are positioned correctly as we scale toward commercial production. With that, I'll turn it back over to Diane for closing comments.

Diane Garrett, President and CEO

Thanks, Mike. As you can see, while some of us are relatively new, we are deeply engaged and well-informed about the project and its processes. We have been working diligently around the clock to develop the best plan for moving forward. The enthusiasm for being part of Hycroft, a project with a world-class mineral endowment, and the chance to demonstrate a revolutionary process truly excites us. We sincerely appreciate your investment and confidence in this team. We remain committed to delivering substantial returns for our shareholders and will stop at nothing to ensure success in a safe and productive environment. At this point, I will turn it back over to the operator to open the floor for Q&A.

Operator, Operator

Our first question comes from Vincent Anderson with Stifel.

Vincent Anderson, Analyst

I was hoping you could just maybe quickly walk us through the remaining hurdles on Pad 1A in terms of technical design versus just getting the equipment delivered. And do you have a relatively firm delivery date for that equipment?

Mike Eiselein, Vice President and General Manager

The technical design had a lot to do with the piping arrangements, integration of different ponds for various oxidation process cycles. We are about 80% through that. It has not significantly impacted us other than ensuring we avoid overspending on the piping arrangements, making it a cost-saving project. Equipment deliveries may be delayed due to COVID, affecting our supply chains. Our eHouse, drive systems for the pumps, and the pumps themselves are experiencing delays, and we are actively negotiating with suppliers. We're currently expecting to see deliveries and installations by the end of Q1, and we are hopeful it won't push back any further.

Vincent Anderson, Analyst

You stacked significantly more gold on the pad this quarter, nice job there. But your production guidance for Q4 indicates a lot of sequential improvement in gold production. You've also drawn down your post-leach inventories, particularly in the carbon column. Is this guidance based on recovery rates on older pads, or just timing? Am I missing something?

Diane Garrett, President and CEO

We have a lot of static on your line; I think your question concerned the forecast for the fourth quarter. Are you expecting something similar to Q3?

Vincent Anderson, Analyst

Is this better?

Diane Garrett, President and CEO

No, but try again.

Vincent Anderson, Analyst

Okay. Sorry. You guys sound great. But compared to the amount of gold you put on pads this quarter, the production guidance for Q4 doesn't seem to indicate much sequential improvement. So, can you explain the expected recovery rate on older pads that you're still using? Is it a timing factor?

Diane Garrett, President and CEO

Yes, it's a timing factor in obtaining those ounces off the pads.

Mike Eiselein, Vice President and General Manager

As we optimized the performance of transition ores that were not responding to the oxidation process, we cut some off early and sent them directly to leach. This adjustment might hold as we move forward. Factors still depend on timing regarding material availability from the pits and their sequencings.

Vincent Anderson, Analyst

For the sulfide ore you plan to place on pre-commercial pads, is it feasible to stack these on the first two pre-oxidation test pads, where you’ve had favorable results? Also, do you have any pads left for piloting the pre-oxidation technology outdoors?

Mike Eiselein, Vice President and General Manager

We have limited options for the oxidation process on existing pads. We’re wrapping up the last cell for transition ore. We do have space in older Brimstone leach pads that enable us to integrate and operate sulfide ores independently while gathering data, which is our intent.

Vincent Anderson, Analyst

If I could ask one more question regarding the visibility on cyanide-soluble content in the transition ore. Given the delays in Pad 1A, how flexible are you in prioritizing the higher cyanide-soluble gold to support production over the next two quarters?

Mike Eiselein, Vice President and General Manager

That is certainly our goal. The intent is to transition from a test operational mindset to that of a producer, focusing on maximizing ounces produced and recovered. That is our plan moving forward.

Operator, Operator

Our next question comes from Terence Ortslan with TSO.

Terence Ortslan, Analyst

I have a quick question. My associate noticed that there were 12.9 million shares of insider purchases. Are these due to management changes or genuine purchases?

Diane Garrett, President and CEO

We do have existing shareholders participating in financing, but we are in blackout mode, so there haven't been any insider purchases. They won't occur until 48 hours after today, along with our quarterly financials.

Terence Ortslan, Analyst

Actually, I was referring to the report indicating insider purchases of 12.9 million shares amounting to $89 million.

Diane Garrett, President and CEO

Let us look into that. I am not aware of that disclosure; we will investigate and will get back to you. We've noted your name and contact details.

Operator, Operator

Our next question comes from Grant Miller with Eastbridge.

Daniel Haimovic, Analyst

This is Dan Haimovic. First, I want to commend you for the team you've built in such a short time since taking over. Congrats to Diane and the rest of the team. I had a couple of questions regarding the qualifying days and how the different pads are performing to ascertain whether you are achieving qualifying days over the last couple of months.

Diane Garrett, President and CEO

Thank you, Dan, and good to hear from you. I appreciate the compliment regarding building the team. We are witnessing good qualifying days, but we see that even with successful qualifying days, the transition material appears to leach just as effectively when sent directly to leach.

Daniel Haimovic, Analyst

What percentage are you achieving with that transition material?

Mike Eiselein, Vice President and General Manager

We started with 8% alkalinity or soda ash to the oxide pads and increased it to 15% as we tested various conditions. We are wrapping up our last oxidation cell, and we'll soon have test results available. Ultimately, we haven't seen the high alkalinity levels significantly improve results on transition ores, which led us to shift towards direct leaching, saving on operational expenses.

Daniel Haimovic, Analyst

So Diane, you mentioned you'll have about 200,000 tons of straight sulfide by November. Will those be put onto clean pads, undergoing the full process?

Diane Garrett, President and CEO

Absolutely. There are existing pads where we can put liner down to process new material, and we will run through the full sulfide oxidation process similar to what we did on test pads 1 and 2. While we want to get moving forward with mining to start immediately, once the new commercial pad is built, we have designated spaces for precisely that.

Daniel Haimovic, Analyst

Regarding the new pad, if material goes on it at the end of Q4 or early Q1, how significantly will the process be delayed in understanding results due to the delay in developing the external circuitry of the pad?

Diane Garrett, President and CEO

To clarify, when you refer to the new pads, are you discussing the pre-commercial or new leach pad?

Daniel Haimovic, Analyst

I am referring to the new commercial leach pad.

Diane Garrett, President and CEO

The new commercial pad at the end of Q1 will be ready for sulfide material. The delay primarily results from components needed for the sulfide oxidation process. Until then, we can place oxide and transition material on the new pad, which does not require sulfide oxidation components. We will segregate areas to facilitate direct heap leaching. Your question concerned expected delays; the new pad was initially to be complete by year-end, so we would have already begun sulfidic treatments. We will essentially face a 90-day delay for sulfide processing but are still progressing with oxide and transition material. Does that answer your question?

Operator, Operator

Our next question comes from Andrew Lester with Harold Capital.

Unknown Analyst, Analyst

Diane, great to have you and your team here. I want to ensure we fully understand the challenges you've been addressing simultaneously. I’m sure prior management might not have fully grasped all the issues they faced. Have you had enough time to evaluate whether there are additional operational or personnel challenges that need addressing to minimize the risk of unexpected problems in the near future?

Diane Garrett, President and CEO

That’s a great question, and thank you for asking. Prior to my first day on September 8, I was bound by NDA with Hycroft for approximately 6 to 8 weeks, giving me insight into various operational challenges. I was aware of the existing issues upon my arrival. On day one, there were no unforeseen surprises, and I was knowledgeable about the operational challenges and some self-inflicted wounds we have since remedied. I expect to continue enhancing our teams. It’s crucial that we obtain and retain top talent because it considerably mitigates potential startup risks through collaboration. Consequently, I am very confident that the addition of recent hires, plus more in the pipeline, offers us the expertise and understanding required to propel this project into commercial viability successfully.

Unknown Analyst, Analyst

If I understood correctly, will you be at a normalized production rate by Q2 2021?

Diane Garrett, President and CEO

We are currently optimizing our budgets and plans based on transitional, oxide, and sulfide materials. Our objective remains to increase throughput and tonnage, aiming for a ramp-up starting now and continuing well into the year. We expect a notable increase in overall production rates as the mine plans are finalized and shared with the market in early 2021.

Operator, Operator

There are no further questions in queue at this time. I'll now turn the call over to Diane Garrett for closing comments.

Diane Garrett, President and CEO

I want to thank everyone for taking the time to be on this call. It was rewarding to address you, and please feel free to reach out anytime if you have questions. On behalf of the entire Hycroft team, I express our gratitude for your continued support and engagement. Thank you for your insightful questions, and everyone, have a safe and pleasant day. We look forward to our next conversation.

Operator, Operator

This concludes today's conference call. You may now disconnect.