Novagold Resources Inc (NG) Q4 2020 Earnings Call Transcript

Thank you for being here. This is the conference operator. Welcome to the NovaGold Fourth Quarter and Year-End Financial Results Conference Call and Webcast. Please note that all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be a chance to ask questions. I will now hand the conference over to Melanie Hennessey, Vice President of Corporate Communications. Please proceed.

Thank you, Ariel. Good morning, everyone. We are pleased that you have joined us for NovaGold's 2020 year-end financial results and for an update on the Donlin Gold project. On today's call, we have Dr. Thomas Kaplan, NovaGold's Chairman; Greg Lang, NovaGold's President and CEO; and David Ottewell, NovaGold's Vice President and CFO. At the end of the webcast, we will take questions, both by phone and via text. I would like to remind our webcast and call participants that, as stated on Slide 3, any statements made today may contain forward-looking information such as projections and goals, which are likely to involve risk detailed in our various EDGAR and SEDAR filings and forward-looking disclaimers included in this presentation. Without further ado, I have the pleasure of introducing Greg Lang. Greg?

Thank you, Melanie, and good morning, everyone. Our Donlin Gold project is in the western part of the great state of Alaska, as shown on Slide 4. This project is a 50-50 partnership with Barrick Gold. Mining is an important part of the Alaskan economy and becoming even more important to state revenues and employment. As shown on the map, there are six producing mines and numerous exploration and development projects in the state. In terms of scale, quality and exploration potential, Donlin Gold's attributes far exceed any other gold development project on the horizon. When combined with the Company's excellent partnership with the native corporations and co-owner, Barrick, exponential leverage to a rising gold price, a strong cash position and key federal and state permits in hand, an experienced management team and Board as well as long-term supportive shareholders, NovaGold is in a league of its own. Slide 5 highlights our strategic focus for the year. As COVID-19 positive cases rose in Alaska over the summer, Donlin Gold's stringent safety measures and on-the-ground support allowed us to safely operate four drill rigs, making up for the two months of the pandemic-related shutdown sustained early in the year. Careful collaboration with our native corporation partners, Calista and TKC, as well as other tribal groups in the region were key to a safe and successful drill program. In August, October and January 2021, NovaGold and our partner, Barrick, reported updates on the assay results from the 2020 program, the largest drill program in over 12 years. The work was carried out safely and ahead of schedule despite the impacts of COVID-19 on our activities. With a long history of mining and a skilled workforce in the state, Donlin offers the opportunity of a future with good-paying jobs and training for young people who can live close to home and continue a sustenance way of life that includes hunting, gathering and fishing. We are proud that more than 80% of our local workforce are Alaska natives and that we had no lost time accidents. The image on Slide 6 shows the 2020 drill program, core hole locations with reported assays in orange and remaining assays to report in black. A total of almost 17,000 meters or over 70% of the length drilled have now been reported. Final assays for the 2020 drill program are expected to be reported in the coming months. We are proud to say that the program was safely and successfully completed in September with a total of 85 holes or over 23,000 meters drilled. The results exceeded modeled expectations with higher drilled grade thickness than predicted by previous modeling. The program to date not only improves geologic interpretation but also provides encouragement for additional high-grade drill targets. All of this was done with zero COVID cases at the project site. Our plans for 2021 include that partners will report the final assays from the drill program. We will be integrating the results into the geologic model and evaluating the timing to update the feasibility study followed by engineering, which forms the basis of our execution plan and ultimately leads us to a construction decision. To complete the model, additional confirmation and extension drilling are planned for 2021, focusing on the continuity and structural controls of the high-grade mineralization we encountered. NovaGold engaged Wood Canada, formerly AMEC, to perform a detailed review of the costs used in the Donlin Gold feasibility study, 43-101 technical report that was prepared by AMEC in 2011 to meet the Company's reporting requirements and qualified person sign-off. Based on that cost review, we determined that updating the Donlin Gold feasibility study using 2020 costs and gold guidance results in no material change to the mineral reserve and reserves. Therefore, the Donlin Gold project feasibility study is considered current and supportive of all of our scientific and technical data included in our public materials. With this, currently updating all sections of the report has generated the Donlin Gold project since 2011. NovaGold intends to file the updated technical report on EDGAR and SEDAR in 2021. The updated Donlin Gold study does not incorporate the latest Donlin Gold optimization work on the geologic model or other optimization work, given that these assessments are still underway. On Slide 7, we highlight federal and state permits received to date, a great foundation from which to build on. In early 2020, the Alaska Department of Natural Resources issued final authorizations of the easements, land leases, land use permits and site authorizations for the proposed transportation facility and easements for the fiber optic cable located on state land. It also denied an appeal and affirmed the division of mining land and water's original approval of the Donlin Gold reclamation plan and accompanied permits. There are three primary permits that remain outstanding, all of which are not on the critical path. The state right-of-way agreement and lease authorization for the buried natural gas pipeline is under reconsideration. A comment period on the document closed in November, and we anticipate that Alaska will reissue the right-of-way agreement and lease authorizations in the first half of this year. With respect to the water right permits, last November, Alaska published a public notice for comment on Donlin's 12 applications for water rights associated with the mine site and transportation facilities. The comment period closed in December, and we anticipate that Alaska will issue the final authorizations in the first half of this year. The dam safety certification is a multiyear commitment for which activities commenced in 2019 but paused to focus on the 2020 drill program. The COVID-19 pandemic created significant concern in the Y-K region due to the interdependence of communities and frequent travel within the region. As shown on Slide 8, Donlin Gold partnered with TKC and tribal councils to coordinate food collection and delivery of supplies to the eight middle Kuskokwim villages. When we took the precaution to pause the 2020 drill program, Donlin Gold donated thousands of pounds of food from our camp and collaborated with Aniak, a regional hub to distribute food and supplies to residents homebound due to health issues and quarantine requirements. Donlin Gold also recognized the need in Bethel, the largest town in the region, and supported the Bethel Community Services Foundation, COVID response fund and the Bethel Community Services Foundation to help vulnerable youth. As noted on Slide 9, Donlin Gold worked with its Alaska Native partners, Calista and TKC, and other key representatives of the communities in the region, responding to the needs arising from the pandemic as well as in other areas such as environmental management, training, education and cultural initiatives. The Donlin Gold backhaul hazardous waste removal project in late summer was a collaboration with 28 community partners that resulted in the removal of over 45,000 pounds of hazardous materials. In the past three years, almost 200,000 pounds of waste has been removed from the region. We are also proud of the ongoing community engagement efforts and growing collaboration with Donlin Gold on the signing of six friendship agreements in 2020 with key communities in the project region. These agreements further expand on the long-term relationships already established with these communities and address specific needs, such as water, sewer and landfill projects. The ice road that connects the remote villages in the Y-K region, salmon studies and suicide prevention are among these many programs. Calista and TKC have been partners in the Donlin projects since 1995. Donlin has life-of-mine agreements with both partners, who have been deeply involved and supportive from the start. We are thankful for their long-term support and commitment to the project and its continued success. We support their mandate through the Alaska Native Claims Settlement Act, as highlighted on Slide 10, to help them develop their land for the economic benefit of the region and all stakeholders involved. These owners have an interest in seeing the project developed. Over the past 25 years, Donlin Gold has worked closely with its Alaska Native partners, along with other key representatives of the communities in the Y-K region to effectively respond to needs ranging from environmental management, training, education and cultural initiatives. The commitment to healthy community was evident, as we've seen with the cooperative response to the global pandemic. These partnerships and the activities and programs we undertake together illustrate our commitment to the sustainable and responsible development of the Donlin Gold project for all stakeholders. On Slide 11, we highlight a few quotes from Calista and TKC. And with that, I'll turn the call over to our Chief Financial Officer, David Ottewell. Dave?

Thank you, Greg. Slide 12 highlights our operating performance. We reported a $33.6 million net loss in 2020, an increase of $5.8 million from the prior year, primarily due to the drill program at Donlin and higher G&A expenses. Lower interest rates led to lower interest income earned on cash and term deposits and lower interest expense incurred on the Barrick notes. Regarding income taxes, we have elected to file a consolidated return for our U.S. subsidiaries. This allows us to use operating losses against our income, resulting in a reversal of income tax expense in 2020. Slide 13 highlights our 2020 cash flows. For the year, we spent $26.6 million, $8.1 million higher than the prior year. This was due, again, to the increased funding along with higher G&A spending and lower interest income. Donlin funding was lower than our original outlook of $20 million, primarily due to better-than-planned drill productivity and lower permitting administrative and community engagement costs. Our corporate G&A spending was higher than our original outlook of $11 million due to higher legal and regulatory costs. On Slide 14, we note our robust treasury. We ended the year with cash in term deposits of nearly $122 million. We also have $75 million from Newmont in July and an additional $25 million due two years later. A further contingent payment of $75 million becomes due from Newmont if the Galore Creek owners approve the project's construction. We anticipate spending $31 million to $35 million in 2021. We put $18 million to $22 million to fund our share of drilling, permitting, and community engagement for Donlin and $13 million for our corporate G&A costs. Slide 15 presents the life of mine diagram for Donlin Gold, one of the world's largest open pit mining development projects. The time invested upfront to build a solid foundation from which to grow responsibly and sustainably has been critical to the project's success to date. And as Greg discussed, in 2021, we expect Donlin to report the final assay results from the 2020 drill program and integrate them into the geologic model. Complete additional drilling focused on the continuity and structural controls of the high-grade mineralization and evaluate the timing for the next step by new Donlin Gold feasibility study and engineering, which forms the basis of an execution plan and ultimately a construction decision. I will now turn the presentation over to Dr. Thomas Kaplan. Tom?

Thank you, Dave and Greg. Some points merit reiteration. When discussing Donlin Gold with investors, I often pose the question: What other gold development-stage assets in the mining sector can compare to its remarkable features? Firstly, its vast size. Secondly, we have an exceptional team, and we're referring to a very high grade for a significant open-pit mine, which will result in low production costs. The exploration potential is incredible. We're discovering it right through in-situ drilling. Notably, the current resources are only located on 3 out of an 8-kilometer mineralized belt, which is only a fraction of the total land package. The exploration potential at Donlin is arguably unmatched by any other gold mining project, particularly in a safe region. The production profile of Donlin positions it to be among the largest gold-producing mines globally, strictly focusing on gold without base metals. Its only comparable project is in Russia, and it has a mine life that spans decades; this foundation is vital to thriving mining companies. It suggests that we won't need to venture far to sustain and probably bolster growth. Our local and industry partnerships are outstanding. We are working on land that's already legally designated for mining and have partnered with prominent native corporations, along with one of the top global gold producers, Barrick Gold. Crucially, we benefit from being situated in one of the world's leading mining jurisdictions. Even if other gold deposits exist, few can combine all the attributes we've discussed while being in a region that ranks as the second-largest gold producer in the U.S. after Nevada. This is why we refer to Donlin as the Holy Grail for our shareholders and those associated with Barrick. Now, let’s provide some context. Greg, as you know, is an engineer and a leading mine builder and operator. He and our project manager, Richard Williams, excel in creating exceptional mines. My expertise lies in anticipating future supply-demand imbalances and positioning ourselves ahead of trends. In the gold sector, even without considering the many macro factors favoring gold, the industry fundamentals point to a rare opportunity to identify the next-generation winners. Following the downturn the gold sector faced, finding those stocks with great assets in secure jurisdictions offers the chance to see significant returns. The current decline in discoveries and grades within the industry, alongside declining gold production— as forecasted by Barrick—indicates that existing mines are being exhausted without adequate new discoveries to maintain supply. The time to develop new mines now averages between 15 and 25 years, making it clear that proactive steps are needed. Foreseeing a 13% decline in existing mine production by 2022 and a staggering 47% by 2027 should concern everyone. Moreover, $130 billion in cumulative capital expenditure is required just to sustain current output by 2026. Most gold supply from stable jurisdictions represents only a small fraction of the overall gold production, particularly from areas that we’re wary of due to potential nationalization risks. This underinvestment will invariably constrain growth. Since 2012, mining companies have been cutting costs aggressively and slowing expansion to safeguard margins, leading to a drastic 65% drop in exploration budgets for gold from peak levels to 10-year lows by 2016. Although budgets increased slightly in 2017 and 2018, current levels remain only 50% of those in 2012. This is shocking because, even if significant mines were discovered, they wouldn't impact the larger supply balance greatly. The shift towards lower-reward late-stage mines from exploration projects implies that it may take 15 to 25 years for new projects to reach market readiness. Over the past decade, just 25 significant new deposits have been cataloged, comprising only 7% of the total gold discovered in the last 30 years. No major discoveries have surfaced in the past three years, illustrating the scarcity of high-quality assets. Among the 135 assets not yet in production, merely 30 contain over 10 million ounces, and only nine possess a grade of one gram per ton or more. Regarding size, Donlin is truly a standout. Only a few projects, ours in Alaska and Sukhoi Log in Russia, possess similar geological characteristics. Alaska, having historic ties to Russia, is also unique in that no gold mine has been known to begin with an endowment exceeding 40 million ounces. This is just on 5% of our land package, with expectations that at least double that amount can be found in terms of mineralization. Although size is critical, quality, represented by grade, is paramount. Currently boasting a grade of two and a quarter grams per ton—significantly above the industry's average during a phase of declining grades—Donlin has immense advantages. Higher grades lead to lower production costs, making this an invaluable asset that could remain lucrative for decades rather than just a few years. NovaGold prides itself on partnering with Barrick, which is set to produce over a million ounces of gold annually, potentially increasing over time. This is quite an opportunity, especially since assets yielding half a million ounces or more annually have a unique scarcity value, particularly when located in jurisdictions with reliable rule of law. As someone who has experienced diverse markets, I've seen significant returns in developing regions. However, my patience for risky investments in uncertain jurisdictions has waned. Institutional investors will likely prioritize world-class assets aligned with reliable governance, honing in on the importance of location in mining, similar to real estate. A prized asset requires advantageous circumstances to flourish. If gold prices rise as anticipated, those mines in less stable regions may become increasingly vulnerable. To summarize my arguments regarding the significance of high-quality assets, Donlin's unique position, the exploration potential, and the jurisdictional advantages all indicate that not all ounces are equal. Strong ounces in challenging jurisdictions do not compare to those found in secure locations like Nevada, Australia, or Alaska. My history reflects a keen interest in assets with optionality, and in today's climate, that optionality might be fleeting as governmental pressures could drive companies towards unrefusable offers. Continuing on exploration, the promise of exceptional results can significantly elevate our stock. As the gold bull market strengthens and favorable drill results surface, the opportunity to capitalize will emerge. Currently, only 5% of the Donlin property has been explored, owing to historical factors stemming from Barrick's previous takeover attempt. Now, Barrick has a skilled explorationist leading the effort, and we expect to uncover further potential at Donlin, potentially dubbing it the new Nevada. Ultimately, I maintain my optimistic view of gold as a core asset. Investors are acknowledging its rightful place in portfolios, transitioning from viewing gold as a mere speculative trade. Gold is evolving into an essential component for long-term investment strategies. There simply isn't enough gold to meet projected demand if asset allocations increase even slightly. Recently, discussions around gold have gained momentum, and it’s now acceptable to express constructive views on gold without backlash, indicating evolving sentiment. With investment from prominent minds like Ray Dalio highlighting gold's defensive role during global uncertainties, central banks are accumulating gold at unprecedented levels. As Russia and China continue to strengthen their gold reserves, their partnerships signal a strategic shift in how currencies are valued globally. Given our strong fundamentals, institutional shareholder support has been robust. Management has increased its ownership, and the majority of our top shareholders are prominent and astute investors, with about 60% of shares now held by just ten entities. Notably, our relationship with major investors like Fidelity and the Saudi Public Investment Fund reflects confidence in our potential. In summary, NovaGold's Donlin Gold project stands as a premier asset set in a top-tier jurisdiction—an opportunity for investors that combines size, grade, exploration potential, and a stable environment. Our shareholders are at the forefront of our strategy and commitment to transparency and performance. Thank you for your continued support.

We will now begin the question-and-answer session. Our first question comes from David Lesinski, a Private Investor. Please go ahead.

Good morning, gentlemen. Before I start with any of the questions I had, I just wanted to take note that SLV, which normally trades the silver ETFs, it normally trades about 26 million shares a day, traded 53 million shares in 45 minutes this morning, which means this ready crowd obviously sees the short position with JP Morgan on silver and gold. And we all know that COMEX has been dictating the price of the GLV and the SLV for 30 years. Now, if the SLV is accumulated, this is the first time initiated, the COMAX is going to have to follow the ETF. So, we reverse roles and I find that a stunning and interesting trend. Because of stuff like this that's happening and the changes that are happening, I think gold feeling a lot higher, and I also would like to see Mark Breslow, just say, We're going to start foundation construction or anything to start getting ready because it's coming. And I'm really anxious to see this mine, at least some construction starts. Now, the other question I had was, is it windy at the Donlin goldmine? Is there a lot of wind because I was thinking about the possibility of wind turbines for energy? As often thought of?

I'll take that question. First off, thanks for joining our call this morning. Over the years, we have looked at different energy sources including wind, and we found that natural gas is the most cost-effective means of generating power at the Donlin site. However, as we update our feasibility study, it’s important to revisit and challenge any of the earlier assumptions. We will also take a closer look at wind and other energy sources as we move forward.

The one caveat to starting some semblance of construction as Mark Bristow was to say, to start with jump I would say, five to eight bucks in a day on that, just that simple statement. The other thing is, I want to point out, there's a lot of talk about Bretton Woods II meeting by Christine Lagarde. And if something like that was going to take place, and all the G20 leaders was sitting around the table, I think the first question I asked would be, What are the gold holdings? And I think at that time, China will finally disclose that they have 25,000 tons instead of 1,900 tons like they say, and that'll be the time that they will come out. I thought just out with the Chinese for 40 years, and I know how they buy, I feel them proud, I think we're doing. It's actually what is favorite when I saw them. And they are the market when they come in and buy for a period of time to drive the price up, and they back away to drive the price down and they come back in power and they didn’t think they with gold and they’re not going to announce their holdings, because they were announced today that they have 20,000 tons. Gold is at $1,000 today, it's just crazy what's going on, but I'm just so anxious to see this progress, at least for some night guys, let's get going. Anyway, that's all I have to say, unless you have any comments.

Thank you very much, David, for your stalwart support. And I think it's fair to say that we're all on the same page about what we're going to see happening in the gold market, the silver market indeed, and also at Donlin, when the time comes, and we're obviously moving in the right direction. The geology is allowing us to be able to say hand on heart to Donlin this clearly a gift that keeps on giving. And I think it will be in the right place at exactly the right time. Thank you, David. I think we should move to the next call. We really need to move on. We really need to move on. I don't want to lose people, but I'm certainly happy to answer any additional questions you have, when there are no more questions, if that's okay with you.

Our next question comes from Lucas Pipes of B. Riley FBR Securities.

I have a few for Greg and then one for Tom. And first, Greg, you had additional drill results out recently, can you maybe just give us your quick impressions from this latest batch? And then what can we look forward to in terms of the timeline from here to revise mine plan and such so that some of the earlier comments regarding development, that we can check those boxes? So really appreciate your thoughts and color on this.

The drill results, frankly, I'm very pleased with them. And whenever you embark on a drill program, you take on an element of risk. And I would say, across the board, we’ve encountered grades that exceed what we expected in the model. And that’s always a very comforting feeling. And across the board, we’re seeing slightly thinner intervals, but it’s significantly higher grades, and certainly we’ll take the grade any day. So we are really pleased with the results we’ve gotten today. As we never take those kinds of results for granted and we should have in the last few days in the next month or so, and look forward to providing an update. For the next, as a turnaround has been slow this year because of COVID, but we’ll be as we get the assays in, we will update the model. And once all the drill results are in, we’ll work with our partner to update our understanding of the impact on the resources and reserves, but this drill program has had. So that will take us well into the second quarter of this year. And I think that’s the time where we’re going to have a small follow-up program to some of these really intriguing intercepts of 10 and 20 grams that are somewhat unexpected. We’re going to do a little bit of follow-up drilling on those, and I think that should wrap up all of the drilling the owners feel we need to prepare a model that’s one need to take forward with an updated version of the feasibility study. So in the second half, I think we’ll be working with our partner to conclude the last of the trade-off studies we need. And I look forward to updating everybody, as those studies are completed. So, I think, yes, in spite of COVID, I think will have some pretty good news and key milestones coming out throughout the first half of this year.

I appreciate the additional insights and am looking forward to everything ahead. Tom, you mentioned the broader market trends and referred to it as a global event. Given your extensive experience with various market cycles and your success in anticipating unusual events, could you elaborate on your observations and what this situation might indicate? You also mentioned implications for silver and gold; I’d like to hear more about your thoughts on that. Thank you.

I could discuss this for a while. You're right when you say we're in uncharted waters. This situation is unprecedented, not only because of the health crisis that could evolve in various ways if it becomes a pandemic. The social upheaval, especially in the West, particularly the events of January 6th, will likely be understood as significant regarding its effects on America's influence and the rising power of other nations at its expense, much like December 7th was, but in a different context. The Chinese are the only country that has emerged from 2020 with actual growth. I’ve mentioned before that people often forget the great depression's political and military implications began with the American stock market crash in 1929. Remarkably, a decade and a half later, the U.S. emerged as the global leader from a crisis that originated domestically, not by design. I anticipated that an economic crisis would arise from China with a cascading effect on the West, leading to China experiencing multiple boom-bust cycles while emerging stronger politically, and the West, with its currently fragile political systems, would become weaker. I drew an analogy to the U.S. from 1929 to 1945. Regardless of whether one believes the Chinese orchestrated this situation, it's evident they are benefitting from the displacement caused by poor decisions related to COVID. They're emerging as winners, albeit in a bleak context. The U.S. is considerably weaker now compared to four years ago, and Britain and France are struggling as well. Conversely, China is stronger, and Russia is asserting itself on the edges, along with Turkey and Iran, presenting a very perilous global landscape. Typically, I prefer to focus on opportunities arising from accidents rather than crises, yet the potential for severe crises to emerge rapidly across various regions, from the South China Sea to the Baltic, is high. There's an ongoing conflict in the Middle East between Israelis and Iranians, with numerous Israeli operations targeting Iranians in Syria and Iraq. In Yemen, there's ongoing warfare involving Saudi Arabia and Iranian proxies. There are multiple conflicts with a clear risk of escalation. Although I wouldn’t suggest these circumstances necessitate holding gold, I also don't believe in gold as catastrophe insurance. Instead, I adhere to basic economic principles. If you consider the numerous unpredictable events that exist economically, geopolitically, and militarily, alongside the distinct discrepancy between supply and demand, particularly in the mining sector and its related risks, it indicates an already developing crisis. The mining industry is experiencing significant challenges, which is very favorable for gold and for companies that can capitalize on these dynamics. This is all observable. Thus, it's important to secure valuable assets in safe locations. However, what matters more is the well-being of our loved ones, and the world is far more perilous now than it was previously. I don’t foresee anything on the horizon that will change this trend.

I really appreciate your very.

Did I answer your question fully?

Yes, I mean, I think this is such, as you said at the outset. This is something that we could discuss for over many hours, but I really appreciate your thoughts. And it’s uncharted waters. And I really appreciate your, you’ve seen this and you have studied history, and so your perspective is invaluable.

If I had to summarize, I would say that there are many uncertainties about the future of the dollar. I have shared some insights about what I believe China is thinking, and if I were in their position, I would likely think the same. China is not merely an emerging nation; it has temporarily submerged and is now resurfacing. While I am pro-American and do not advocate for the Chinese model, I must recognize that they have developed a substantial economic framework. They have become a larger trading partner with more countries compared to the U.S. Their capabilities and efficiency, especially in crises, are noteworthy, and it's clear that both China and Russia are observing these dynamics closely. Currently, there doesn’t seem to be an end to the money printing trend, and the concept of money itself is under reconsideration. One of our previous callers, David, mentioned a second Bretton Woods. It's vital to remember that John Maynard Keynes suggested that gold should be part of Bretton Woods, as many see it as a store of value that holds significance in the global financial system. I believe China officially holds more gold than the U.S., though they haven’t disclosed this information, and they likely have a vested interest in increasing gold prices. Similar motivations apply to Russia as well, as both countries are seeking to challenge dollar dominance, which is essential for America’s ability to exert influence. We are witnessing a notable shift in power that is accelerating, characterized not just by China's rise, but also by the relative decline of the United States. This is indeed a challenge that could be reversed, but it demands a collective spirit and civic responsibility, often ignited by significant crises. Historically, many Americans were hesitant to engage in World War II until the events of Pearl Harbor catalyzed a change in perspective. I hope we do not face a similar catalyst. On the geopolitical stage, it appears that China is shaping the narrative, and we should remain mindful of our circumstances. I’ve always viewed myself as an optimist, even amid challenging situations. I don’t possess gold for speculative reasons, but rather to safeguard against potential downturns. As I work to ensure a secure future for my children, I find it crucial to stay informed about global developments. It’s important for everyone to remain vigilant and to consider the future of money and the world. Above all, teaching our children about ethics and honor remains paramount. Thank you, and please feel free to reach out anytime, though perhaps bringing a bourbon would be appreciated by the time our conversation concludes.

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

Well, everyone for joining our call this morning, and we look forward to updating you on our progress in the coming months. Stay safe. Thank you.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.