TRX GOLD Corp Q3 FY2023 Earnings Call

Thank you, Gaylene. Welcome, everyone, to the TRX Gold Corporation Third Quarter 2023 Financial Results Presentation. As a reminder, all participants are in a listen-only mode and the meeting is being recorded. After the presentation, there will be an opportunity to ask questions. If you wish to ask a question, please click the Q&A icon on the left-hand side of the screen. You will see the options, raise your hand to join queue and ask your question verbally, or write a question to submit your question in writing. When you are introduced, your line will automatically be unmuted. Analysts who have dialed into the conference call may press then one on your telephone keypad to join the question queue. I would like to turn the meeting over to Stephen Mullowney, CEO of TRX Gold.

Yes. Thank you, Christina, for the introduction. My name is Steve Mullowney. I'm the CEO of TRX Gold, as mentioned by Christina, and we're pleased to give you the Q3 2023 financial results as well as an update on operations at the Buckreef Gold project. Q3 was, I believe, our third quarter with the 1,000 tonne per day plant started in Q1 halfway through. And so we've been learning a lot throughout our operations throughout the year. And one of the biggest things in Q3 to come forward is the fact that we processed sulphide ore, which was 6,500 tonnes of hard, fresh rock, went through the plant at a good recovery rate, which opens up a much broader deposit to mining, and that will be now incorporated into our mine plans. We've also upgraded the plant from our learnings from that. And recently, a cone crusher was installed as well as the conveyors and other parts of the crushing system got upgraded in order to accommodate that harder rock. So that's a very, very exciting and extremely important value creation piece that occurred in Q3, and we'll get into that in much more broader detail in the presentation. So I'm going to flip the slides here to the next slide. Obviously, I've got to say the cautionary note and forward-looking statements. You can find this note on our website, and we'll just leave it at that and move forward. Today's speakers will be myself, Andrew our COO, who is next to me, across from the table, Mike, who is also across from the table. Christina, who is sitting next to me. For new people to the TRX, I know there's a lot of shareholders on this call as well as analysts. So, what is TRX? We are a team of experienced leaders who have been executing on the Buckreef Gold project very rapidly. We've gone from zero ounces of production to an annual run of 25,000 ounces and growing very quickly. It's a high-margin operation that has positive cash flow. As we'll get into further into the presentation, the exploration upside is still here. It is an underexplored property. There is still a lot of opportunity to increase minimum resources and mineable ounces here at Buckreef. Again, just at a very high level, around Buckreef Gold property, the last resource statement had over two million ounces measured and indicated. The resources come to surface. That's where you see us mining in the oxides because it's wide at 20 meters of width with consistent mineralization over two kilometers. We say easy metallurgy because it's grind, crush, CIL, and that is both in the oxides and has been proven in the sulphide through the bulk sample. There's a MET study being done for the broader deposit, particularly in the deeper parts of the deposit with SGS in South Africa. We're fully permitted to 2032, and that special mining license is renewable for the life of the mine deposit. The processing plant and mine have consistently been meeting the production guidance that we've provided. We have a minimal environmental footprint. We recycle all water. We have good tailings management connected to the National Power Grid, which is predominantly hydropower, particularly with Julius Nyerere facility to come online. And we have exploration potential and a lot of blue-sky potential in this property over time. So with regards to the Q3 2023 highlights, the 1,000 tonne per day plant continues to run very efficiently. As a lot of the audience knows, there are three main ball mills there, 15 tonnes per hour ball mills, which equal 1,000 tonnes per day, giving us flexibility in our operations. We've poured over 15,000 ounces and sold over 16,000 ounces of gold, respectively, in the nine months ended May 2023. We recorded positive operating cash flow that will continue to fund growth at both the operation and exploration levels. I believe, Mike, to Q3 2023, it is almost $15 million of investment.

That's right. Just under $15 million, Steven, correct?

Yes. And so we have strong profit margins of 42% and 49%, respectively. In Q3, it was down a little bit given that the ounces weren't as high due to the wet season. However, we expect that to pick up, particularly with gold prices being higher now as well. We continue to reinvest the cash flow, as we mentioned. There is a new ball mill that will be coming online, which will effectively double the production rate, increasing processing capacity by 75% to 100%. That mill is now shipped. I saw pictures of it on a truck last week, Andrew, believe in China?

On the way to the port.

So that's the longest lead item, and it's well underway. We're getting on top of other long lead items here now. We've successfully processed the sulphide bulk sample, which I mentioned at the beginning of this call is a game changer really from a planning and operational perspective. We continue to achieve positive near-surface drill results at Anfield and Eastern Porphyry. We are evaluating where best to go next in order to bring in mineable ounces and to increase the overall resources of the property. So in any exploration program, you have what I'll call fits of starts and stops to reevaluate. We're in that reevaluation phase now before we ramp it up again. We reported an almost zero environmental or community-related incidents during the nine months ended May 31 and continue to have a very strong social license in Tanzania. So with that, I'm now going to hand it over to Mike, our CFO, who will go through our Q3 financial highlights.

Well, thank you, Stephen, and good morning, everybody. Thanks for joining us today. TRX continued to report strong financial results during the quarter, and this was off the back of again lofty gold prices as well as production from the 1,000 tonne per day plant that Stephen touched on that continues to produce very, very efficiently and effectively. During the quarter, we produced and sold approximately 4,800 ounces at a realized price of almost $1,960 an ounce. That's up from Q2, where gold prices were trending around $1,850 an ounce. So we did benefit from an uptick this quarter, and we continue to see gold prices maintaining. In fact, this morning, it was somewhere around $1,975. So we continue to benefit from topline net revenues and gold price production. We recorded revenues of over $9 million for the quarter. On a year-to-date basis, as you can see, almost $30 million of revenue was generated. That generated operating cash flow of over $3 million for the quarter or almost $15 million year-to-date, as Stephen touched on. And again, we've substantially reinvested that operating cash flow right back into the business. Stephen touched on one example with the new ball mill that we've recently purchased. But we've also expanded our tailings storage facility, for example, quite significantly, which will accommodate much larger production. We relocated a road, which will allow us to access a main zone unlocking high-grade blocks. We've also purchased other pieces of capital equipment. For example, new generators this quarter...

We've significantly reinvested our operating cash flow back into the business. Stephen mentioned our recent purchase of a new ball mill as one example. Additionally, we have greatly expanded our tailings storage facility to support much higher production levels. We relocated a road to improve access to a main zone, unlocking high-grade blocks. We've also acquired other essential capital equipment, such as new generators this quarter.

Yes, those will replace units that we had previously rented that were quite costly on a rental basis impacting our cash cost. So by purchasing pieces of capital equipment like that, we end up benefiting longer term, and the payback on those pieces of equipment is very, very, very short. So fair value increases. The key takeaway, I would say, again, is our philosophy and our model. We're using organically generated cash flow to help grow the business by reinvesting it back into Buckreef. On the cash cost side, just the previous slide, Steve, one or two more comments for the benefit of the audience. Cash costs for the quarter were just over $1,000 an ounce. I think at the mine sequence during the quarter had us undertake a stripping campaign, which we touched on in Q1 and Q2. That stripping campaign involves going wider and deeper in the pit as well as undertaking blasting activities, which unlock high-grade ore blocks, which we really expect to benefit Q4's production and certainly, production into early next year. Stephen touched on this, but Q3 is the traditional rainy season in Tanzania, which was extraordinarily wet this year compared to prior years. So had a bit of an impact on head grade quarter-on-quarter. But again, on a cash cost basis, we still expect to fall within that $750 to $850 full-year guidance range that we put in at the start of the fiscal year, albeit towards the higher end of that. Importantly, being a low-cost operation, gross profit margins continue to be very, very high. You can see on a year-to-date basis, gross profits are almost 50% and were 42% for the quarter. What that shows is that the plant and the ore that we're bringing out of the ground, again, it's really efficient and effective and importantly, from a financial perspective, profitable. On a year-to-date basis, we produced over 16,000 ounces. Stephen touched on that. Again, revenues of almost $30 million. So year-on-year, quite a significant achievement as we continue to grow this business. And again, importantly, operating cash flow of around $15 million we put right back into the ground. Again, we've used cash flow from operations to make value-accretive investments back into the business. You touched on a big one, Steven, with the new ball mill that we expect to be on the ground in the coming weeks. The balance sheet continues to be strong. We had a cash balance of over $7 million at quarter end as well as lots of other pieces of liquidity that we can access; working capital was positive at over $3 million EBITDA, over $3 million as well, again, all demonstrating strong liquidity, which helps fund organic growth. We do expect Q4 to be our strongest production quarter of the year, and we'll touch on guidance here shortly, but we're certainly on track to meeting our full year numbers and Steven touched on between 20,000 and 25,000 ounces. I think I'll leave it there for now on the financial highlights. Back to you, Steve.

Yes. Thank you, Mike. So on the next slide, I'm going to hand it over to Andrew to go through the preliminary bulk sample that was done on sulphides, and I'll supplement your comments, Andrew, around this. As I said, this is a game changer. What we found in that bulk sample is what we anticipated to find, which is the Buckreef ore is really about grind size at the end of the day. So the finer you grind it, the higher the recovery rate of the gold that you'll get. So when we grind it to 75% passing 80%, which we did in this bulk sample, we got what we expected, which was around 89% recovery rates. This lined up very well with what was achieved in the SGS preliminary MET study. When you go through that study, we presented a number that was over 90%. That was with a slightly different flow sheet of flotation followed by a regrind and CIL. But if you just do a straight grinding and CIL, it came out to what we anticipated it to come out to if we grind it fine, and we get higher recovery rates. So it's a trade-off between how much energy you use and the CapEx you put in to get a finer grind to get the higher recovery size. So that will be trade-off studies that will be done in the future. But, Andrew, go ahead.

Well, Stephen, you said that very well. So perhaps I could just talk a little bit about that. Yes, we did take advantage of operational sequencing in the wet season to take that 6,000 tonne sulphide sample. But obviously delighted with the results, as you see, we've got recoveries here at 88.7% which is very much in line with the test work that SGS had done prior year. But what is also very important in that work is what we learned. What we learned is that we do have to particularly crush finer and as we’ve purchased the current crusher, which is on-site commissioned and is available for when we do a fresh ore again. And the whole goal of that, as you said, is to get the better grind and throughput. What I'd like to see is you can sort of see up on the oxide ore going up – there are conveyor belts there, but it's fresh rock, we want to see popcorn-sized rock going up into the ball mills. The hard work of grinding it down is then a lot easier for the ball mills if they're getting a finer feed. So we've learned that, and then we do the absolute upgrades to 2,000 tonnes a day, we again focus on making sure we get as much as possible the finer material going into the ball mills. I think that's it really.

Yes. So what does it really mean at the end of the day? What this really means is the sulphide ore will go through the existing plants.

That's correct.

And we've recovered at a good rate. So that means that there's no need to come up with a new circuit at this point in time for sulphide ore, which means we can continue to expand Buckreef the way we're expanding, which is expanding existing plants and equipment over time or maybe faster. But it doesn't mean a whole new processing facility for sulphide ore – industry-related CapEx is a much more complicated system.

Yes. And this all ties in very nicely but I think we touched on it, that ties in with the more detailed metallurgical studies we're doing now with SGS in South Africa.

So on that point, what are we doing? So obviously, there's a 2018 PFS that the company did prior to the management team around the table coming in, and we've talked about this at year-end. A lot of work has gone into the infill drill program. That's been completed. We're doing the MET study, as we mentioned a couple of times. That's across the deposit to make sure what we found in the bulk sample and in the preliminary study that there's no changes in the ore across the deposit both along strike and at depth. So that's what that MET study will do. The Geotech study is ongoing that determines the pit slopes. At Buckreef, we have hard rock there. So we're optimistic that we'll get some good pit slopes in our planning. Currently, the pit slopes, Andrew, are around 45 about 40 degrees, and that's in the soft rock. So I want to get to the harder rock, we expect that to be higher. There's long-term TSF planning ongoing, obviously. It's easier to take it out of the ground in the store. It's got to be stored somewhere afterward after close to the processing plant. So that is continuing on ongoing, identifying lands to purchase for that, also giving a really good look and relook at dry stack tailings that will be done over the next couple of months. We're updating the mineral resource model to make sure that we have all our ducks in a row as we put in place an updated mine plan. And now we all wrap into what a life of mine plan looks like today. Obviously, we anticipate that to improve over time as more drilling is done around Buckreef getting the blue sky potential around the Anfield, the Eastern Porphyry and those parts of the deposit, as well as what's at depth and along strike in the main zone. It's our anticipation that this will be a deposit given the width and the grade of the deposit that will go underground over time. There will eventually be a trade-off between do you do more stripping, you go wider, to get deeper or do you just do your underground development. There will be a point in time in any mine plan where that trade-off will cross and you will go underground. This is something that will be looked at as we work through mine modeling of the broader deposit over time. Anything to add to that, Andrew, did I forget anything?

I think the other thing we'd like to do, Stephen, is we see this on the exploration slide is to get a couple of satellite pits up and running. It builds optionality for the mine plan.

So for instance in Q3, we had that optionality because we had crushed stockpiles. We had stockpiles. We had a main pit. Now we're going to supplement that as everybody knows my mindset is to have redundancies in any operation to reduce risk. So that's essentially what you're doing in opening up areas. You may not mine it right away, but if something happens over here in the main pit, for instance, you can pivot over to the satellite pits. It's the same concept of having three ball mills operating. If one goes down, you don't have to shut down the whole operation when you're a single-mine company. So we're very positive on putting in place those redundancies over time. Okay. So on the exploration side, Andrew, tell everybody what they have here where you're going.

Yes. I think those that have been with us on previous presentations will remember the map on the right here. For those that are new, just very quickly. Each of the black squares is 2x2 kilometers. You're looking at the special mining license in the red boundary, the existing main zone where all the color dots are. You can see where the plant is. And then highlighted in the dashed lines are exploration areas. So we continue to be very excited, I think, is right in the geology team that's now on-site is getting very, very familiar with the geological models and controls on our operation. So just in summary, we did 239 meters in Q3. We've done over 11,000 meters so far in this fiscal year. So in terms of results for the quarter that came out, we did get some drilling on the Eastern Porphyry and the Anfield, which are both wider a few hundreds of meters to the east of the main zone. As you'd expect, I’d put the best results up here for you to see. It was very, very encouraging to look at this 14 meters at 3.5 grams a tonne, between 3 meters at 10 in the Eastern Porphyry. We also had another intersection there in the same hole about 25 meters of 1.6. So we know that that zone can contain some significant intersections; a lot more drilling to do. Another intersection again shows good width and a good grade for an open pit at 1.22. From the Anfield, we had some grab samples previously from the artisanal mine shaft. We redrew that coming back at 2.94 meters at 13.7 grams a tonne. For me, as a geologist in exploration, that's very significant for a first drill hole to go into that target. Again, some of these good widths and grades. The second hole from there 6.1 meters grading 1.41 grams a tonne. I do draw your attention also to the fact that these intersections are shallow. Obviously, that's very encouraging for getting some initial open pits going. Back to you, Stephen.

Yes. Thank you, Andrew. So with regards to the year-end sort of guidance, as we've mentioned, we're a low-cost, low-risk approach to growth in the gold space. The 1,000 tonne per day plant has been operating at nameplate capacity since the end of October. We're going to reiterate our production forecast of 20,000 to 25,000 ounces. I think we're on a 20,000 ounces now.

Yes, we did 16,000 as of Q3. And again, we've obviously been producing since then. So we're well on track, yes.

Yes. So we're almost there anyway. So as of today.

And again, as mentioned, we expect Q4 to be the highest production quarter. So well on track towards getting that goal, yes.

Yes. So the cash cost guidance, we reiterate that as well. We're advancing the third mill expansion in less than 18 months that will put 2,000 tonnes per day, which is roughly around 750,000 tonnes per annum, Andrew. That's not a small operation, a decent size. That will obviously increase the production levels at Buckreef. We don't expect it to double instantaneously because we've got a grade profile as well to deal with and putting it through the mill.

So I think also Stephen, just, we're not expecting to substantially increase our fixed costs. We’re going to see some benefits on our cash cost as a result.

Yes, we're going to see, yes, exactly. So all in all, things are going as expected. Any time we run into extra rain, for instance, or things of that nature, we’re able to pivot and create new value-creating opportunities.

Just again for our audience. The wet season this year was about three times as severe as the prior year.

Yes, exactly. Yes, there was a lot of rain there.

As you can see, where the guys on the bottom right there are rolling out the lineup.

Yes. That would have been a couple of weeks ago. Yes. I'm going to take one question from the Q&A from the queue. Right now, the question is, what do you foresee as being the biggest threat to overall cost. IRR, gross net margins are great, with anticipated rising cost in gold price, the multiple expansions could look stunning. However, controlling cost is a premium. Yes, having control on cost is always number one. The operation has grown quite rapidly. So there's a lot more controls going in place even as we speak around cost involving those costs. That is one area where we're managing costs. We continue to procure locally, which is reducing cost. It also reduces supply chain risk. We're also, what I would say is our next expansion isn't proceeding as quickly as the other two expansions prior to that to control the cost to ensure that the operations are currently cash flow positive, so we could control the cost of that build much better than if we were to rush it. Obviously, we've got to double mining rates as well in that equation. Fuel prices have stabilized. Fuel is always a large component of cost in any mining operation. So we're good there. I don't see any overly bearing inflation pressures, Mike?

No, no. And Andrew, you touched on this earlier; I mean, the plant is scalable as well. So you don't expect to see a lot of additional fixed costs as we grow and expand our plants, don’t expect headcount to expand dramatically again a big benefit from this sulphide bulk sample is that we can expand this facility as you touched on a few times, and again expect costs to come down as a result.

Yes, exactly. So as Mike mentioned, there's a lot of what I’ll call infill CapEx. Tailings has been expanded. We look at things like generators. It cost us a lot of money, so we bought them. That IRR payback is quite good on that, which reduces cost, loaders this morning, right? So we currently rent a lot of loaders. We're now purchasing those, and that's got to pay back for three months or something like that, right? So we're looking at that across the entire operation. So that's the answer to that question.

Steve, you mentioned fuels just as an example, as just drained down a little bit – we have now got vendors to basically a fuel station, that’s Buckreef. To access that, controllers, the operators get cards, they have to be swiped, that all goes into our electronic system and through the enterprise system, like that you look at…

Yes, the ERP is fully integrated.

And Stephen, I think we got – we got a little ahead. I think Jake is probably still on the line, Jake. Back to you if you had any further questions.

One moment please, I need to unmute his line again. One second. Jake, your line is open.

Great. Just one more quick one for me. On the sulphide, you mentioned the resource estimate due out around the end of this year. How quickly do you expect to move forward with an updated economic study on the back of that resource update?

Yes. We're right in the throes of that at the moment. Thanks for the question. We're anticipating to close out on that in the next quarter.

Yes. I always expect by the end of the year.

Okay. So you think we might see that economic study sometime in the first half of next year or before that?

We're going to do an economic analysis on that concurrently.

Got it. Okay. That's helpful. Thanks.

Yes. Thanks, Jake. Back to you operator.

There are no further questions in the queue.

All right. So I'm going to answer a couple of questions in the chat. One was an update on Jim Sinclair. So Jim is currently Chairman of the company. I spoke to him yesterday. He is well, still working part-time and is more in a semi-retirement type mode given his age, but he's doing extremely well. Another question is, and I keep on getting asked this one is the dividend paid in gold? So back in the day when I believe the dividend paid in gold was mentioned, the company has changed significantly over time. Back in the day when I believe the dividend paid in gold was mentioned, the company would have been much different than it is today. But the Buckreef Property has a joint venture agreement with STAMICO in Tanzania. As part of that, the gold is sold to Argor-Heraeus in Switzerland to fund operations, and that revenue then comes back to a bank account in Tanzania. I wouldn't expect to see a dividend paid in gold in the short to medium term is the quick answer to that question. And I think the next one, I think that's it for the questions because they’ve been answered. Operator, any other questions? Maybe one at the bottom there.

Yes. We actually have two questions now from the meeting. I'm going to announce Stephen Reiser. Your line is open.

Hi. Thanks very much. And hope you all can hear me. Thanks very much for the update. I appreciate the strong operational performance coming out of TRX. I wanted to ask you, you indicated on one of the PowerPoint slides that you're expanding, looking or aiming to expand the scope of the PFS by 2x to 4x. I know you talked about 18,200 Steven metric tons in that original study by 2x to 4x – what actually does that mean? Is that expanding the metric tons by 2x to 4x? Or is there another way to think about what that means tangibly?

Yes. So I'm going to go back to that slide, Steve, and answer that question and how we think about this. So we're now about halfway to the annual or billing tons with about 1.5 million tonnes. So once we do the next expansion, we are right around 750,000 tons. Our goal here, ironically, is almost at the average annual gold production amount in the next expansion. Our goal is, the way I always think about value from a mining operation, the goal is to have 10-plus years of mine production at over 100,000 ounces of annual production. Then you get into the metrics of having a valuable mining operation. That is how we think about expanding the scope by 2x to 4x levels. We want an increase in the gold production and hopefully, an increase in the life of mine of the project. Maybe not 16 years; it may be less than that, but certainly, a lot more in ounces in production, which expands over time with additional resources through drilling. Does that answer your question?

Yes. Appreciate the clarification. Stephen.

Thanks, Steve.

Thanks, Steve.

There are no more questions at this time from meeting participants by voice. Pardon me, we do have another question. It's from Christopher Taylor. Christopher Taylor, your line is open. Mr. Taylor, your line is open. Doesn't seem to have a connection. The floor is back over to you.

Yes. So there is a couple more questions in the queue. With regards to Mr. Sinclair, no, he has not sold the company. He's still a shareholder in the company. In order to sell the company, all shareholders would have to sell their shares. There are over 15,000 shareholders in TRX Gold. With regards to share-based payment expense. Mike, would you want to just answer that question, what that relates to?

Yes, maybe you could just scroll down a little bit so I can see the rest of the question in the queue.

It just says under.

Okay. Very good. So I presume this is referring to relying on our G&A section of our P&L or income statements. That's basically a mark-to-market on share-base compensation for the management team and the site-based employees. We recognize those shares on our books via the market.

Yes. And part of that is – there are some liabilities in equity for shares to management, which we have not received yet and have done that in order to maintain capital balances in the company.

Yes, good point, Steve.

We have another question from a participant in the meeting. Your line is open.

Hi, everybody. Continued success. I like what I'm seeing. I came on to the call a little bit late, so I apologize if this question has already been answered, but expansion of existing resource base. I know there's been production with other drilling. Is there a time period on what that might look like? Can you comment on the possible size of expansion of the resource?

Andrew?

Yes. Thank you very much for that, Craig. We're in the process of updating the mineral resource. As I alluded to earlier, that's due to complete in the next quarter along with an updated economic model. As you're probably well aware, I can't comment on any numbers.

So what you'll see in that update to give you some guidance on how mineral resources are now classified is the in-pit amounts. So what is looked at is what's mineable ounces. What you can take out today in mine at a profit in a pit or in an underground scenario. That is really what the focus is, is a real big focus on mineable ounces. That is where the new standards came in that all companies now have to follow. The old standards were where is all your gold and will it be mined in the fullness of time is the way to put it. And so, what we're looking at is what is mineable.

Historically, is more global. Nowadays, the reporting has to be more focused.

More focused on mineable ounces.

What does a pit-constrained mineral resource look like?

That’s what we’re working on.

Yes. So one question that we have here is to explain the initial plant CapEx over three years of $76.5 million. So this is a good question. In this 2018 PFS, remember, the company had no production in 2018. So the engineering firm, when it went about its work, said, if you were to construct a plant, what would it cost in order to get the level of production, they would go and get quotes, those sorts of things. In that 2018 PFS, to get the average annual production of 51,000 ounces would have cost $76.5 million in 2018. We've developed this property differently and the production profile and property differently by putting it into production and building the plants on our own, not utilizing, for instance, EPC contracts. To get to the level of production that we're anticipating at 2,000 tonnes per day, now the plant cost all in of that will have ended up being around $13 million, Mike.

Yes, that's right.

Yes. So significantly under that $76.5 million. This is the beauty of testing the sulphides. As we mentioned before, we don't need to go out and build a plant right away if we don't want to or don't have the capital resources to do that. We can continue just incrementally increasing this plant size over time, or if the economics make a lot of sense, doing a lot more quickly. So any IRR payback and EBITDA increase is there to make it accretive to all shareholders. So we have options now that we didn't have in the 2018 PFS. I hope that answers the question. Operator, any more questions?

There are no further questions at this time.

Okay. There's only clarification. The Chairman selling the company, the go through with the way companies are bought and sold in the mining industry as a public company. If the company were to be sold, shareholders would have to vote on that. They would go through a process in which it is marketed to a lot of companies under a strategic advisory type of mandate. Then you would take the highest probable price by a party that would have full financing in place, and then shareholders would have to vote on. The Board would have a recommendation – the shareholders would then get to vote on that. The Board would make a recommendation, and the shareholders would have to vote on that. The Board would have to approve it.

We have no further questions at this time.

Excellent. Well, thanks, everybody, for joining our Q3 2023 conference call. A lot of good things going on. A lot of moving parts. But we're pretty positive on what's upcoming. We reiterated our production guidance, our cash cost guidance where we're going in our planning for Buckreef, and we continue to look forward to positive operating and exploration results going forward. Thanks, everyone, for joining the call today. Greatly appreciate it. You can call any one of us at any time with any questions.

Goodbye.

Thanks, everyone.

Thank you.

This concludes the meeting. You may disconnect your lines. Thank you for participating, and have a pleasant day.