Earnings Call Transcript - NGD Q4 2021

Operator, Operator

Good morning. My name is Chris, and I will be your conference operator today. Welcome to New Gold's Fourth Quarter 2021 Earnings Conference Call. All lines have been muted to avoid background noise. Please note that today’s conference call and webcast are being recorded. After the speakers finish their remarks, there will be a question-and-answer session. I would now like to hand the conference over to Ankit Shah, VP of Strategy and Business Development. Thank you.

Ankit Shah, VP of Strategy and Business Development

Thank you, Chris, and good morning, everyone. We appreciate you joining us today for New Gold's fourth quarter and full-year 2021 earnings conference call and webcast. On the line today, we have Renaud Adams, President and CEO; and Rob Chausse, CFO. Should you wish to follow along with the webcast, please sign in from our home page at newgold.com. Before the team begins the presentation, I would like to direct your attention to our cautionary language related to forward-looking statements found on Slides 2 and 3 of the presentation. Today's commentary includes forward-looking statements relating to New Gold. In this respect, we refer you to our detailed cautionary note regarding forward-looking statements in the presentation. You are cautioned that actual results and future events could differ materially from those expressed or implied in forward-looking statements. Slides 2 and 3 provide additional information and should be reviewed. We also refer you to the section entitled Risk Factors in New Gold's latest MD&A and other filings available on SEDAR, which set out certain material factors that cause actual results to differ. In addition, at the conclusion of the presentation, there are a number of endnotes that provide important information and should be reviewed in conjunction with the material presented. With that, I'll now turn the call over to Renaud.

Renaud Adams, President and CEO

Thanks everyone for joining us today for the 2021 review and 2022 outlook, and reserve and resources update. 2021 brought us part of challenges, but I'm extremely proud of our resilient team and the way we ended the year. On the operational side, both assets achieved a consolidated data production and cost guidance. Q4 delivered the strongest production and the lowest costs of the quarter for the year. At Rainy River Mine, the mine achieved its updated 2021 guidance while executing extremely well on its capital project, achieving some savings and tailing execution. We've also continued to advance the Intrepid Zone with the view to bring about some production, with the first production in the second half of 2022. The highlight of the year was that the year-end updated reserve and the resources, while we see a meaningful conversion of the mineral resources to the mineral reserve, leading to a year-over-year increase in the mineral reserve for New Gold. At New Afton Mine, the assets achieved its 2021 production guidance, slightly higher costs but considering all the challenges that the mine had to navigate through in 2021, it was an excellent execution of New Afton while we continued to advance our C-Zone, and advance on plan for delivery and start of production in the second half of 2023. The B3 Zone initiated with delays in the permitting and continued to advance and ramp up during the second half of 2021, and we've seen some very encouraging exploration results in '21 and will follow-up in '22. At the year-end, the Company concluded the sale of the Blackwater gold stream for proceeds of $300 million, bringing our cash balance to $482 million, while combined with our increased and extended credit facility does position our liquidity at a meaningful market $850 million. The crystallized value for the Blackwater has shared position for company with a leading balance sheet and financial capacity to execute on our strategy. On that, I'll turn it over to Rob Chausse, our CFO for Q4 and 2021 reviews. Rob?

Rob Chausse, CFO

Thanks Renaud and good morning, everyone. Slide 6 provides our operating highlights, which align with our January production press release. In Q4, the Company produced 111,500 gold equivalent ounces, consisting of 14.2 million pounds of copper and approximately 81,000 gold ounces from Rainy River and New Afton. The decrease in equivalent gold production compared to the same quarter last year was mainly due to a reduction in tons processed by both assets. Our operating expense per equivalent ounce increased from the prior year quarter, affected by the strengthening Canadian dollar, lower sales volume, and the Canadian wage subsidy received last year. The consolidated all-in sustaining costs for the quarter were $13.55 per equivalent ounce, higher than the same quarter last year due to increased operating expenses, though partially offset by lower sustaining capital. Turning to Slide 7 for financial results and capital, fourth quarter revenue reached $202 million, driven by sales of 78,000 gold ounces at an average price of $1,798 per ounce and 14.2 million pounds of copper at $4.37 per pound. Our Q4 revenue was 2% above last year’s quarter, primarily due to increased metal prices, though partially offset by reduced sales volume. Our operating cash flow before working capital adjustments was $93 million or $0.14 per share for the quarter, consistent with the prior year. The Company recorded net earnings of approximately $151 million or $0.22 per share in Q4, compared to a loss of $0.03 in the previous quarter. After certain adjustments, net earnings were $24.7 million or $0.04 per share for the quarter, matching the prior year quarter. These adjusted earnings included adjustments related to our gain on the Blackwater stream sale and unrealized adjustments on the Rainy River mark-to-market and free cash flow royalty at New Afton. Our MD&A contains additional information on the non-GAAP measures we've discussed. Still on Slide 7, our total capital expenditures and leases for the quarter were $60.5 million, with $33.6 million allocated to sustaining capital and $26.9 million to growth capital. Sustaining capital primarily funded planned tailings work at both operating assets, capital strip at Rainy River, and B3 development at New Afton. Growth capital focused on project development, specifically the C-Zone and the Thickened and Amended Tailings Project at New Afton and the underground Intrepid Zone at Rainy River. Slide 8 outlines our capital structure. During the quarter, we extended our credit facility, resulting in lower interest rates moving forward. Cash on hand at the year-end, as Renaud indicated, was $482 million, primarily from the proceeds of the Blackwater sale. Slide 9 covers our guidance. In 2022, we expect consolidated production between 380,000 and 440,000 gold ounces, with all-in sustaining costs ranging from $1,470 to $1,570 per ounce. We anticipate 55% of annual production to occur in the second half of the year, with all-in sustaining costs decreasing throughout the year. Sustaining capital, mainly for waste capital, tailings management, and B3 activities, is estimated between $180 million and $225 million in '22. Growth capital, targeting C-Zone development and underground development at Intrepid, is expected to range from $115 million to $155 million in the coming year. With that, I'll turn the call back to Renaud.

Renaud Adams, President and CEO

Thanks, Rob. I'm on Slide 11 regarding the mineral reserve and mineral resources update. As mentioned in my opening comments, there was a year-over-year net increase in mineral reserves for New Gold to 3.7 million ounces, up from 3.6 million by the end of 2020. This was led by a meaningful conversion of approximately 569,000 ounces of the mineral resources to mineral reserve in the underground at Rainy River, leading to a net increase of 200,000 ounces of gold reserves for the year. This includes all deflation and setbacks that took place from mining to negative reconciliation and mineability. The inflow barrier which was responsible for most of the additional deflation will be mined out at the end of 2023. At New Afton, mineral reserves decreased by approximately 75,000 ounces of gold and 78 million tons of copper, mostly due to mine deflation, but also reflecting the closure of the Lift 1 case as planned. At Rainy River on Slide 13, the mine delivered the highest production and the lowest cost quarter of the year, achieving its updated 2021 production and costs guidance. The mine translated below plan at nearly 130,000 tons a day, mostly due to some drill availability issues, but also as we adapted the plan at year-end to accommodate more 433 zone, adjusting our need for the East Lobe as we worked on optimization. The mill delivered approximately 44,500 tons a day, although lower at 27,000 tons a day. But as I mentioned, with the more for 33 zone higher or processing and also with a three-day shutdown that was originally planned for early '22 but advanced to December. The overall strip ratio for the pit at 2.8 to 1 in the fourth quarter and in line with our overall year plan of 2.7 for the year, and the average gold grade was one gram, showing an improvement over the previous quarter. Gold recovery was up at 92%, with many positive developments occurring in Q4 at Rainy River, and we aim to build on that through optimization and operational excellence as we continue into 2022. The asset generated a very interesting free cash flow of $36 million in the fourth quarter, totaling $46 million in '21. Exploration activity resumed in the Northeast trend, and I'll discuss more of that in the following slides. Looking forward, it's all about continuing to optimize the asset and the cost efficiencies while further controlling risks as we execute on our Intrepid and capital plan. I look at Slide 14 for the operational outlook, the gold equivalent production is expected to be 265,000 to 295,000 ounces of gold equivalent. This signifies an increase over the prior year, mostly due to better grade, better ton mine, and processing as well as the commencement of extractions of the Intrepid underground zone in the second half of the year. Similar to last year, the production in the second half is anticipated to be slightly higher, as we take advantage of the winter for most of our stripping activities. The ore from the East Lobe is expected to contribute only 25% of the production in 2022 and will be higher in the second half, as mentioned due to stripping prioritization in the first half of the year. The all-in sustaining cost is expected to be between $1,270 and $1,370 per gold equivalent ounce. This is a net decrease over the prior year and is primarily due to higher production, but also optimization and reduced tonnage from the East Lobe, along with improved productivity in the mine. Sustaining capital is expected to be between $125 million and $155 million, very similar to last year with main areas of execution including capital waste in open pit, the annual tailings dam raise, and maintenance program in other sustaining capital aimed at completing targeted execution. Growth capital is expected to be in the $15 to $25 million range. This combined with the roughly $12 million spent in 2021 will contribute to very low pre-production costs aimed to bring Intrepid into production. On Slide 15, as highlighted for the year, there has been a significant increase of total mineral reserves on the ground. The overall underground mineral reserve grew year-over-year from 672,000 ounces at the end of 2020 to over 1.2 million ounces in 2021. This resulted from adding nearly 569,000 ounces of mineral reserve from the central zone, leading to an increase of over 200,000 ounces of mineral reserve for the year. The Intrepid Zone has remained roughly at 200,000 ounces of mineral reserve. As we advance, you can appreciate from the picture shown on Slide 15 that this represents significant improvement in the central zone. The lower cut-off has also considerably enhanced continuity on the lateral and vertical fronts. There's still around 1.3 million ounces measured and indicated in the Measured and Indicated resources category, providing the asset with further potential for conversion as we continue to optimize and execute on our underground plan. A 43-101 Technical Report will be filed at the end of the quarter that will incorporate the new central zone and Intrepid, along with an integrated life of mine, and I look forward to discussing further details of our plan once we file the 43-101. On Slide 16, the second phase of exploration drilling will start at the end of 2021 and continue into Q1 '22. There were roughly 13, 50, and 100 meter drill holes in Q4, and more drilling will continue into Q1 2022, along with additional exploration activities including geochemical survey, geological mapping, and trenching to validate and assess the first phase program results. A total of $5 million is planned for the year, primarily focusing on geological assessment and interpretation. On New Afton on Slide 18, the Q4 highlights reveal that our New Afton delivered production and achieved our production gold equivalent range of 165,000 to 195,000 ounces equivalent. As I mentioned, production was slightly above the target range for costs, reflecting a 5% overage which is acceptable considering all the challenges we faced in 2021. The C-Zone development continued to advance well, and we still expect to begin the production in the second half of '23. The copper grade was slightly below previous quarters at 0.67%, with gold remaining at 0.41 grams per ton. Gold recovery, despite the improvements on the surface edging on, continues to remain above 80%. As we prepared for the completion of Lift 1, we observed slightly lower production as we navigate into 2022. I will discuss more concerning guidance as we proceed. We have also completed five holes on the Cherry Creek, which consisted of three holes totaling 1,200 meters of testing artificial intelligence targets, and have seen very encouraging results in 2021, and we look forward to planning for 2022. With regards to ESG, we introduced the use of battery-electric trucks for underground operations, which complements our already existing electric scoop strategy, and we will continue to assess the use of electric equipment for the C-Zone, aiming to contribute to a reduction in carbon emissions. On New Afton, the operational outlook indicates the production guidance will be lower than originally planned for 2022. The plan focused on B3 and C-Zone was intended to prevent exhausting and eventually closing the Lift 1 case in the first half of 2022 remains unchanged. We have transitioned to in-pit tailing in 2022 to fulfill all activities and successfully closed the Lift 1 case. We will utilize current tailings to maximize recoveries. In 2022, we will likely close the Lift 1 case while ensuring ongoing contributions from both B3 and C-Zone with no changes concerning total tons and grade. However, production levels will be lower than originally targeted due to the delays in executing the B3 project. The all-in sustaining costs are expected to be between $1,695 and $1,795, again reflecting higher than initially planned expenses alongside lower production projections. Sustaining capital for the year is estimated to be between $55 million to $70 million as we aim to complete the development of the B3 project and maximize its capacity towards the end of the year, providing contributions for B3 at maximum capacity in 2023. The growth capital is anticipated to be between $100 million to $130 million, primarily aimed at advancing the C-Zone project, which we aim to deliver on schedule and within budget in the second half of 2023, which will encompass developments in underground activities, infrastructure, and completion of the TAT facility commissioning as well as progress on stabilization. For exploration at New Afton, we have conducted two phases of reconnaissance drilling within the Cherry Creek area, with geological mineralization and alteration interpretations guiding future drilling patterns. There is significant potential for discovering a porphyry system within the Cherry Creek Shear Zone. Our underground drilling in 2021 was also notably effective, targeting additional copper and gold mineralization, and we will follow up in 2022 aiming to locate and unlock higher-grade mineralization that could enhance our mine plan as we advance towards our goals. The budget allocated for drilling in 2022 will be $15 million for New Afton. As we move forward, we remain focused on operational excellence and continuously delivering on our growth opportunities, anticipating a potential growth of 30% from the 2023 guidance. We currently hold a favorable financial flexibility position, allowing us to execute our plans effectively. We see significant potential to unlock value at New Afton as we continue our delivery strategy, and the Rainy River project has already shown positively producing free cash flow in 2021. Expected plans and improvements for 2022 will see us unlocking maximum value from remaining ounces in the pit through our planned capitalized strip to be completed by the end of 2023, ultimately reducing our sustaining capital as we advance further underground operations with potential for additional ounces. Operational excellence will be our mantra in 2022 as we work diligently to unlock the full value. This concludes the presentation portion of the call, and I will turn it back to the Operator for the Q&A portion.

Operator, Operator

Your first question comes from Josh Wilson at RBC Capital Markets. Josh, please go ahead.

Josh Wilson, Analyst

First off for the Rainy River reserves, there was previously some discussion about an optimized mine plan that would incorporate some ability to extend the mine life, I guess by supplementing the underground or with additional material given the difference between the plant throughput being high and underground throughput being low. With the updated reserve though, it looks like that kind of duration for the open pit versus underground has become even larger in terms of difference. So how should we think about the mine life after the stockpiles are depleted for the open pit?

Renaud Adams, President and CEO

I think Josh the upcoming 43-101 will clarify. What we are doing now is we're currently incorporating the new central zone, which as I mentioned grew by 569,000 ounces. It's been integrated into the fully planned mine together with the Intrepid zone. This will clarify year-by-year the terms of grade zones and mine metal production. The plan hasn't really changed, but if you remember the current 43-101 has already included the upper part of the central zone and the entire pit, alongside the increase in the completion of the stockpile as you mentioned. The increased total ounces and the mineral reserves would enable the mine to extend beyond 2028. All details will be provided in the upcoming 43-101.

Josh Wilson, Analyst

Should we think about the underground throughput as something that could increase from its current level, given the grade changes year-over-year? Maybe a larger ore body would allow for more mining faces, or is the throughput more stable?

Renaud Adams, President and CEO

Yes, we will clarify on the details of throughput, but you pointed out that if you compare the central zone year-over-year, there has been a reduction with the cut-offs or reductions in overall weight but a significant increase in total tons targeting volumes over selectivity and providing with more ore to increase throughput as mentioned. The details year-over-year and the impact will be in our upcoming plan, but that was the strategy behind reevaluating 1400 having the solutions for milling to support conversion of the reserve and stockpiling, targeting volume and the central zone.

Josh Wilson, Analyst

Moving on to New Afton, one of the key aspects for the C-Zone project still is permitting. It's hard for us to project or estimate when these deliverables are going to be achieved. When we think about how permitting has affected the B3 zone, what would be the effect if C-Zone permitting timelines were to be slightly adjusted?

Renaud Adams, President and CEO

Yes, that might be the case. I think that the risk will be to a certain degree similar, and there would be no impact on total tons, grade mineable, and the life of mine; however, there will be a shift in overall productions short-term, delaying recovery of those metals. On the permitting side, for the B3 there was a delay in pit tailing, operational tailings were permitted as stabilization allowed for more subsidence as we mined. All those aspects for addressing the B3, technically, if you will for C-Zone, there is not more than stabilization, more in-pit tailing, and a bit more subsidence, but all of which were very well addressed in the B3 permitting as well. Again, 2021 was challenging for B3, including for the whole community and a tremendous wake up for Canada. Many things transpired in '21 that on the technical side led us to believe that C-Zone permitting will be on time.

Josh Wilson, Analyst

Last question in terms of the C-Zone deliverables regarding overall spend and timelines. I noticed the numbers were reiterated when looking at original projections for 2021 concerning development rates and spending versus what was achieved. There was a slight variance, and in following the industry-wide trends, we're seeing a huge degree of inflation. So how comfortable are you with existing timelines and capital numbers? How much wiggle room or buffer is there for these items?

Renaud Adams, President and CEO

We feel very good. We appreciate that 2021 was a challenging year with a complicated mine plan, exhausting the Lift 1 case, along with rehabilitation efforts and recovery activities at low productivity levels and ventilation issues amidst various activities. Our mine plan is now significantly simplified, with recovery levels being in a more favorable state, closing Lift 1 has enhanced ventilation. We will now focus heavily on executing the C-Zone and B3 at optimal capacity. We remain confident in achieving our planned productivity. You're correct that there have been challenges on the cost side, but if you review our execution in 2021, including Rainy River, we realized savings through execution at Rainy River. The adjustments in capital for B3 are primarily due to extra development costs rather than mega inflation factors. Consequently, we feel strong about our outlook.

Operator, Operator

Your next question comes from Fahad Tariq, Credit Suisse. Fahad, please go ahead.

Fahad Tariq, Analyst

On Rainy River, can you just give us some more guidance on the grades for this year? Is it right to think that grades will be lower in the second half but higher in the second half compared to the first half? Thanks.

Renaud Adams, President and CEO

Yes, I appreciate that. The first year of the 43-101 will be updated; but if you look at our guidance of 260,000 to 290,000 ounces of gold, it reflects an overall grade at 27,000 tons ranging between 0.9 and 1 gram. This essentially mirrors our guidance, with slightly higher grades expected in the second half as we prioritize some winter stripping activities. About 55% of the ounces are anticipated in the second half versus 45% in the first half.

Fahad Tariq, Analyst

On cost optimization at Rainy River, can you give us more details on areas where you see opportunities to lower costs? Thanks.

Renaud Adams, President and CEO

The largest opportunity targets areas where expenses are highest, primarily in the debt sector. When looking at our overall OEE efficiencies and execution from late 2018, we managed to reduce mining costs significantly. The cost from $3 plus to $250 to $270 per ton has shown improvement in OEE, yet we see room for further optimization. We pursue additional drives where tires and autos can be improved to better match best-in-class operations. The 27,000 tons a day will also yield per ton reductions both in the milling process and G&A. Enhancing OEE will lead to productivity improvements and potential opportunities, such as reducing equipment thereby impacting maintenance costs positively. This is a comprehensive exercise, and we’re working diligently on the detailed plans.

Fahad Tariq, Analyst

Just one for Rob, can you remind us of any gold hedges? Are there any hedges in place for 2022 on the gold price?

Rob Chausse, CFO

No, we're not utilizing hedges on metals.

Operator, Operator

Your next question comes from Trevor Turnbull, Scotiabank. Trevor, please go ahead.

Trevor Turnbull, Analyst

Just a follow-up on grades at Rainy River. I know you have a new technical report coming, and I looked back at the 2020 report. It indicated grades from the open pit would begin to pick up starting this year on the order of 1.2 grams relative to the 1 gram you’re discussing for this year. Why are the grades so much lower than originally outlined? When do we expect open pit grades to align more closely with levels originally projected a couple of years ago?

Renaud Adams, President and CEO

Going back to the mineral reserves updates, a contributor to this is the application of a factor of 85% for the remaining East Lobe ounces. In 2021, the mineral resources in reserve for the East Lobe open pit have the 85% factor applied, which has contributed to reduced total grades in 2022. The timing, execution, and contributions from underground ounces incorporated into the plan from 2022 to 2026 further influence this outcome. That said, the increased total ounces and mineral reserves pave the way to extend mine life beyond 2028.

Operator, Operator

Your next question comes from Anita Soni, CIBC World Market. Anita, please go ahead.

Anita Soni, Analyst

I have similar questions about grades and tonnage at New Afton. Can you provide clarity on what you’ll be seeing there?

Renaud Adams, President and CEO

We did not detail the breakdown. However, expect that due to delays in the B3 Zone, there will be a higher proportion utilized from the stockpile to supplement operations. When evaluating overall guidance, the B3 zone is anticipated to average around 4,000 tons a day. Grades remain stable, but we will be using supplementary lower-grade stockpile resources, which significantly impacts production levels.

Anita Soni, Analyst

Are you still expecting tonnage in the 14,000 to 15,000 ton per day mark?

Renaud Adams, President and CEO

No, that would be suppressed. Original projections stated a transition when closing cave one, indicating a dip in expected tons. This was always accounted for in earlier projections regarding the transition in '22.

Anita Soni, Analyst

What will the mill capability be?

Renaud Adams, President and CEO

Overall, it should fall between 8,000, 9,000, and 10,000 depending on performance with B3.

Anita Soni, Analyst

Regarding Rainy River, can you provide the operating strip ratio for reconciliation of cash costs?

Renaud Adams, President and CEO

The projected operating strip ratio for 2022 will be about 3.2, as compared to 2.7 overall in 2021.

Anita Soni, Analyst

Just trying to ensure we don't double count the cash costs with your guidance for 60 million in waste stripping.

Renaud Adams, President and CEO

Cash costs are not expected to shift as a result. Ultimately, we are looking at it as an all-in sustaining cost. Some shifts may occur, but the overall plan backs the projected execution of 55 million tons at a 3.2 strip ratio. Please reach out to Rob if further clarification is required.

Anita Soni, Analyst

With the additional tons added at Rainy River, when do you expect synchronization within processing the underground material?

Renaud Adams, President and CEO

This will coincide with the C-Zone. I prefer not to disclose specifics yet. We're currently integrating these into our strategies, and a detailed plan with year-by-year and zone-by-zone metrics will be available, explaining targets on equipment logistics. However, I can assure you that as we advance through 2022, we anticipate higher volumes being processed than originally planned.

Anita Soni, Analyst

Could you summarize the tailings capacity status at New Afton?

Renaud Adams, President and CEO

As a safety aspect, concerning the Lift 1 and its proximity with the pit initially aimed at a summer transition from conventional tailing into in-pit tailings. Due to a last year's fatality incident, though, we took the opportunity to avoid leaving recovery levels behind. Our team has efficiently optimized the use of conventional tailings, which we expect will enable us to accommodate most—if not all—of 2022 with conventional tailings, avoiding rushing the transition into Intrepid and allowing more time to extract the remaining recovery levels.

Operator, Operator

Your next question comes from Mike Parkin, National Bank of Canada. Mike, please go ahead.

Mike Parkin, Analyst

You are sitting on substantial cash, and the gold stream sale brings in even more. What are your thoughts regarding the premium on senior notes? Should we expect a potential calling of those notes?

Renaud Adams, President and CEO

Our current balance sheet provides us significant optionality. As we progress through '22 in the near-term, our focus will be delivering our business plans, notably concerning the C-Zone and the underground project. Support for debt repayment, specifically regarding the 25, alongside other shareholder initiatives, remains on our radar.

Mike Parkin, Analyst

Referring to the underground at Rainy, would you categorize the reserve update as positive in terms of being open at depth? How do the reserves terminate, and what do you believe about the potential to push deeper using a ramp?

Renaud Adams, President and CEO

Referring to Slide 15, it's important to compare the depth of total resources—total resources measured and inferred remain pretty much the same, primarily constrained by drilling data. As you can imagine, deeper drilling leads to loss in drill tightness. However, it remains open, and around the 1.2 to 1 million ounces central zone potentially presents extended ore opportunities. While we've converted a considerable portion, there still exists a lot of ounces that may require optimization, further exploration, and tighter drilling. As we progress to deeper levels in execution and reduce capital over time, opportunities should reveal themselves.

Mike Parkin, Analyst

Previously, we discussed the tailings facility at Rainy River. The old design indicated ratios that utilized 11 to 1 across the entire length of the dam. I remember you felt there was optimization potential for parts that came into bedrock, potentially using a more normal ratio. Is this something that has been factored, or is this still considered as upside?

Renaud Adams, President and CEO

The current plan continues to reflect a fall of 11 to 1, with potential optimization for future phases. Our priority remains ensuring progress regarding instrumentation and monitoring every 100 meters, enabling us anticipatory pressure handling. Potential optimization could unfold moving forward, but the strategy remains set at 11 to 1 plan for now.

Operator, Operator

Thank you. There are no further questions at this time. I would now like to turn it back to your hosts for closing remarks.

Ankit Shah, VP of Strategy and Business Development

Thanks, Chris. And thanks everybody who joined us. As always, if you have any additional questions, please don't hesitate to reach out to us by phone or email. Thanks very much, everyone. Have a great day.

Operator, Operator

Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that please disconnect your lines.