Good day, and welcome to the first quarter 2019 results announcement conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Gleb Diachkov-Gertcev. Please go ahead, sir.
Good day, ladies and gentlemen. I am Gleb Diachkov-Gertcev, Head of Investor Relations for RUSAL, and I would like to welcome you to our first quarter 2019 results. Let me introduce the RUSAL team presenting today. It is Alexandra Bouriko, CFO, Roman Andryushin, Director of Sales and Marketing, Denis Nushtaev, Head of Research Department, and Elena Ivanova, Director of Corporate Finance. With this, I would like to pass the word over to Elena, who will start today's presentation with the highlights.
Thank you, Gleb, and good afternoon, good morning, everyone. We apologize for the slight delay, and thank you very much for joining the call. Before we proceed, I would like to point out that the first quarter of 2019 was significantly challenged by the previous year's results. That includes the OFAC sanctions, which were lifted, as you know, in January 2019. Both operating and financial results were affected by these circumstances as well as by deteriorating market environment. I would like to give you a few numbers, highlighting the company performance during the first quarter. Total aluminum sales in the first quarter decreased by 7.2% year-on-year, down to 896 kilotons. The short OFAC general licenses extensions impacted the sales structure. In first quarter 2019, VAP sales decreased by 44% year-on-year, down to 259 kilotons.
Following the reduction of the LME aluminum price by almost 14% year-on-year, down to $1,860 per ton, RUSAL's revenue decreased by almost 20% year-on-year, down to $2.2 billion. EBITDA decreased by 60% year-on-year to $226 million, and EBITDA margin amounted to about 10.5%. As of the end of first quarter 2019, net debt amounted to $7.6 billion. Now move to the next slide, environmental achievements. On this slide, we would like to draw your attention to the continuous improvement of our environmental footprint. RUSAL major strategic goals remain the same, to reduce direct greenhouse gas emissions by 15% by 2025 compared to levels in 2014, and to ensure that we purchase at least 95% of electricity from hydroelectric power plants and other carbon-free power sources.
As you can see from the chart from this slide, we are constantly working to reduce emissions, and as of today, we are proud to say that we have decreased emissions by 9% since 2014. We also purchased 98% of our energy from non-carbon sources. In first quarter 2019, RUSAL signed an agreement with the government of Krasnoyarsk region, and as part of this pilot project in Krasnoyarsk region, the company will plant 500,000 trees and develop a set of measures to protect 500,000 hectares of forest from fire. We believe this will further compensate for the company's carbon footprints for aluminum production. Now we are moving to the review of our operational and financial results, and I would like to hand over to Alexandra Bouriko, who is going to open this section with sales dynamics and our VAP situation overview. Thank you.
Thank you very much, Elena, and good morning, everyone. We are now on slide number seven. As Elena already mentioned, the first quarter 2019 still felt the impact of OFAC sanctions. The most significant influence was on the share of our VAP products in the total sales mix, which dropped to approximately 29% in the first quarter of 2019. Due to longer lead times, VAP sales recognized in the first quarter 2019 represent contracts that were serviced towards the end of Q4 2018 and at the beginning of the first quarter. This period was significantly challenged by short OFAC general license extensions, as the sanctions were only lifted on 27th of January 2019. Total aluminum sales for the first quarter amounted to 896,000 tons, which is a 7.2% decrease year-on-year, including VAP sales of 259,000 tons, 44% decrease year-on-year due to sanction pressure.
Following a decline in the aluminum price, the first quarter of 2019 average realized price decreased to $1,949 per ton, which represents 16.2% decrease year-on-year. The LME component was $1,849 per ton, and commodity grade premium was approximately $51 per ton. Average upcharge per ton of value-added product sales was $171 per ton for the first quarter of 2019. Our regional sales mix in the first quarter has been adjusted due to OFAC sanctions, with more weight on European destinations, which maintain the largest share in the mix. Increased from 41% to 53% year-on-year, and on the Asia region, which increased from 18% to 22% year-on-year. Let's move to slide number eight and look at the financial overview and the revenue structure. Total revenue in the first quarter of 2019 was $2.2 billion, which represents almost 21% decrease year-on-year.
Revenue from aluminum sales in the first quarter decreased by 22.2% to $1.7 billion. This was driven by 16.2% decrease in the average realized price, as well as decline in premiums to an average of $100 per ton in the first quarter of 2019, from $173 per ton in the first quarter of the previous year. As well as 7.2% decrease in sales volumes that I have already touched upon. Remaining revenues totaled $424 million. Revenue from alumina sales to third parties was $172 million, 27.4% decrease year-on-year, driven by significant decrease in sales volumes. Revenue from sales of foil and other aluminum products was $91 million, which represents 1.1% increase year-on-year. Revenue from other sales decreased by 6.4% to $161 million. Let's move to slide number nine, which represents our key segment cash costs.
In the first quarter of 2019, the production cash cost of aluminum increased by 1.7% quarter-on-quarter to $1,633 per ton. The cash cost in the first quarter of 2019, as compared to the fourth quarter of the previous year, was primarily affected by increase in energy costs, which is seasonal, as well as ruble appreciation. In the first quarter of 2019, the average energy purchase price for RUSAL stood at $0.0333 per kilowatt hour, which represents 8% increase quarter-on-quarter or 7% decrease year-on-year. An appreciation in day-ahead market pricing, the exchange rate factor and capacity component increase were observed during the first quarter 2019, and all contributed to the energy purchase price growth. Let's move now to slide number 11, which gives you an overview of the company's EBITDA. On this slide, we traditionally summarize the factors that contributed to our EBITDA dynamics.
As you may see from the top chart, the aluminum component decrease in the aluminum price, coupled with a decline in premiums, were the key factors that led to 60.5% year-on-year drop in EBITDA to $226 million. As a result, our EBITDA margin decreased to 10%. In terms of the segment impact, the aluminum segment remained the largest contributor to our group's EBITDA. Let's move now to slide number 13, which gives you an overview of our capital expenditure. On this slide, you can see that in the first quarter 2019, our total CapEx was $136 million, of which approximately 50% went to maintenance CapEx. In the first quarter 2019, the company continued to invest in our key development projects to support the company's competitive advantage of vertical integration and to continue the expansion of RUSAL's aluminum capacity.
These projects include the Friguia Alumina Refinery Complex, which at full capacity will produce 600,000 tons of alumina. The first stage of development of the Taishet Anode Plant, 217,000 tons of baked anodes at the first stage. And the first stage of Taishet Aluminium Smelter, which at full capacity would run at 430,000 tons. On the following slides, we'll give you a brief update on the two key projects aimed at increasing RUSAL's aluminum capacity, BEMO and Taishet Aluminium Smelter. Slide number 14 now, which talks about BEMO project. As you already know, BEMO project is an industrial complex in Siberia, combining the Boguchany hydropower station and Boguchany Aluminium Smelter, and it is carried out in joint venture partnership with RusHydro. The first half, 149,000 tons per annum of the first stage of the smelter was launched in the third quarter of 2015.
On March 29 of this year, during a ceremony attended by Dmitry Kozak, Deputy Chairman of the Russian Government, RUSAL and RusHydro officially launched the first stage of the Boguchany Aluminium Smelter. Current capacity of the smelter stands at approximately 300,000 tons per annum. The second stage is yet to be considered with our strategic partner, RusHydro. But once fully completed, the total project capacity of the Boguchany Aluminium Smelter will be around 600,000 tons per annum, with a product portfolio including up to 360,000 tons of value-added products. Let's look at slide number 15 now, that gives you an overview of Taishet Aluminium Smelter. I would like to update you with some new details regarding this project. As you know, the expected capacity of the first stage is around 430,000 tons per annum.
We anticipate that value-added products will constitute around 80% of total output of the first stage of the Taishet Aluminium Smelter. The project was initiated in 2006 and then suspended in 2009 due to unfavorable market conditions. We restarted construction in the first quarter of 2017 and expect first metal at the end of 2020. During the course of the first quarter 2019, the company continued financing the construction of the smelter using its own funds. With this, I would like to hand over back to Elena to give you an overview of debt profile.
Thank you, Alexandra. We are now on slide 16. On this slide, we can see our key debt metrics and updated maturity profile of the company's debt portfolio as of the end of the first quarter 2019. I would like to give you a brief update on the key events that occurred during the first quarter and the subsequent events with regards to our debt management. In March, April, RUSAL repaid in total about $300 million of public debt, including partial repayment of first tranche of panda bonds and some partial repayment of ruble-denominated bonds. All these repayments occurred through put option that was presented by the bondholders.
Once the OFAC sanctions were removed, all three rating agencies assigned ratings to RUSAL, namely, Fitch at BB- with stable outlook, Moody's, Ba3 with stable outlook, and Russian national agency Expert RA with rating at the level of ruAA- and stable outlook. In the end of April, on the 29th of April specifically, the company successfully re-entered the debt capital markets with placement of ruble bonds with total amount of RUB 15 billion, total maturity of 10 years with put option date in three years' time. The coupon rate was at the level of 9%, and as a result of this placement, the company decided to proceed with cross-currency swap that resulted in conversion of this placement into U.S. dollar at the rate of 4.69%. If you compare this level with current average rate, it is actually lower compared to current average rate of 5.6%.
If you look at the debt profile, we have remaining repayments at the level of $600 million as of the date of today's presentation throughout the entire year. With this, I would like to finish this section of the presentation and pass it to Roman Andryushin to start the market discussion. Roman?
Hello. Inga Simonenko will speak on behalf of Roman. Let's turn to slide 19. The aluminum industry and demand growth faced a wide range of challenges that occurred in 2018 and continue to affect the market in first quarter 2019. The main challenges facing the industry were trade wars and considerable slowdown of the Chinese economy, Brexit, and the implementation of low quality ore ban in China. The unpredictability of the factors has contributed to a generally negative reaction from the market, especially considering the current weak economic and industrial indicators. The key end-use aluminum consumer segments, such as the automotive and construction sectors, are also under pressure. As a result of the factors, the IMF has cut its global GDP growth forecast for the fourth time in nine months. Market analysts have reduced their forecast for aluminum end-use demand for the short and mid-term.
For example, in the past 12 months, the global end-use demand forecast for 2022 was downgraded by 1.6 million tons, including 0.5 million tons for the transportation sector alone. Forecast for primary aluminum demand were lowered by almost 900 tons, 1,000 tons in China and 1.5 million tons in the rest of the world. The next slide, please. Chinese ban on import of low quality ore led to an excess of aluminum scrap supply ex-China. In 2018, the restrictions on the import of low quality aluminum scrap by China added more than 600,000 tons to aluminum flow in the rest of the world. The U.S. and Europe, which are both traditional exporters of aluminum scrap to China, have been affected the most. Both the U.S. and Europe are now trying to export their post-consumer scrap to India and Southeast Asia.
Nevertheless, the availability of excessive scrap might intensify in the mid to short-term, stimulating the investment into scrap sorting and recycling facilities and aiding concern regarding growth perspective of primary aluminum demand. Next slide, please. Key foreign markets: Europe, Asia ex-China, and North America. On this slide, we would like to discuss major trends in our key international markets, including Europe, Asia ex-China, and North America. Automotive, the key aluminum consuming segment, contracted in the first quarter 2019 year-to-year across all regions. According to the estimate, automotive production in Europe fell 9%, in East Asia by 2.5%, and by 3.6% in North America. Among key consuming regions, the manufacturing PMI will continue to expand only in the U.S., predicting weak demand in most regions for at least next two, three months.
Despite the negative macro factors in first quarter 2019, primary aluminum demand grew in Europe by 1%, in North America by 1.5%, and 1.3% in East Asia. The main reason is continuation of aluminizing process in the automotive industry. The European aluminum industry started responding to enforcement of the year ban on single-use plastic scheduled for 2021, with an increasing dependency on aluminum in the packaging industry. Next slide, please. Now let's have a look to Russia and CIS markets. In the first quarter 2019, the primary minimum demand in Russia and CIS markets has decreased by almost 17% year-to-year, and actually reached to the level which reached in 2017. Such fluctuation is explained by high base in the first quarter last year and the stagnation of the key consuming segments, such as construction, due to changes in regulation and the introduction of escrow accounts for developers.
The pace of car sales slowed down after the rapid growth in 2018, and the market volume is expected to remain at the same level as last year. Manufacturing PMIs will continue to expand, showing an improvement in the business environment, but the number of economic risks remain in place, making any forecast of aluminum demand dynamics in the region unreliable. Next slide, please. Let's have a look at the market balance. The deficit in the primary aluminum market ex-China is shrinking following expansions and restart of smelting capacities in North America, Europe, Russia, India, and Asia. At the same time, about 1.6 million metric tons in additional smelting capacity, which are expected to be delivered to the market, ex-China will not sufficiently meet demand and therefore will keep the rest of the world market in deficit.
Nevertheless, we expect a deficit of 1.4 million tons in 2019 and 1.2 million tons in 2020. The market deficit in Europe is forecast to stay unchanged this year and the next year, while the deficit in North America might reduce. The aluminum scrap sector may continue to gain share from primary aluminum, and particularly in North America. Now I'd like to give the floor to Denis Nushtaev to discuss the development in China and our views on supply and demand in that region.
Thank you, Inga. Just briefly speaking on Chinese supply-demand, overall, we believe that keeping the deficit ex-China, we've seen that this deficit is filling by different supply sources, including stocks. We also see the Chinese semis export gradually possessing ex-Chinese demand as we see the lack of semis capacity in ex-China due to low margins and risks of further growth in ex-China smelting and the semis capacity. By this, we're seeing that the Chinese gradually possessing the share of ex-Chinese demand in the supply in semis products, including flat roll products, foil, extrusions, and wheels. As we're expecting, China still has ability to grow some spare capacity, and we're definitely seeing some projects in the pipeline during next two, three years. Thus, we believe that China will continue exporting semis products that are also subsidized by the government, so definitely seeing more Chinese exports going forward.
On the next slide, we see that despite some muted growth in Chinese capacity over the last two years, we see some capacity closures due to lower SHFE price. At the same time, we see the good spike in SHFE price in recent years as a result of some closures in the
In the end of 2018 and in the first quarter of 2019. Definitely this spike is now making more capacity profitable in China. Today, it is just 16% is underwater. In this way, we think there are some possible restarts may be coming, which will definitely be pushing down the price or at least keeping the price at the same level. At the same time, we are definitely seeing that production in China is also not growing. But again, as I said, with the spikes in the price, we definitely might see some restarts in the China. At the same time, demand in China continue to be weak. We have seen that in the first quarter, demand was up only 1.5%. This also was well explained why we see the spike and growth in Chinese semis export in the first quarter of this year.
With this, I am passing back to Gleb.
Thank you, Denis. Thank you all for your attention. We will now open the line for questions.
Ladies and gentlemen, if you wish to ask a question on today's call, please press star followed by the digit one on your telephone keypad. Please ensure the mute function is switched off to allow your signal to reach our equipment. If you find that your question has already been answered, you may remove yourself from the queue by pressing star two. Once again, it is star one, if you wish to ask a question. We will pause for just a moment to allow everyone to signal. We will now take our first question from Daniel Major from UBS. Please go ahead. Your line is open.
Hi there. Thanks very much for your presentation. Few questions. Firstly, on CapEx, can you give us any updated guidance for the full year on a group basis? That is my first question.
Hello, Daniel. This is Alexandra.
Hi.
Our guidance for now doesn't change. As we stated previously, this year we expect to spend $800 million-$900 million for CapEx. You can see that the first quarter was lower due to sanction restrictions and so on. However, if the situation remains stable, we do expect to continue on with the project and spend as planned.
Okay, thanks. Second question, assuming that you normalize your VAP sales structure, and at current alumina pricing at about 350 spot price, what is the current cash flow breakeven of the smelting business on an operating cost plus sustaining CapEx basis?
It's a convoluted question. I will try to answer in a simplistic way. You can see our aluminum segment cash cost, which stood at just over 1,600 during the first quarter. You can use that as the guidance for a breakeven, as it includes alumina at our production cost. Mm-hmm.
Okay. Thanks. Just a final question on the announcement of the joint venture in downstream in the U.S. Can you give us any guidance or just a reminder on the future capital spend there? I am assuming this will be an equity account to joint venture. Is that correct?
It is very early stages at this point in time. However, if the company does proceed with the project, it will be equity counted, and the total value of the project estimated at approximately $1.7 billion, which will be project financed. Expected investment from the company's balance sheet is around $200 million.
Perfect. Thank you very much.
Thank you. We will now take our next question from Timothy Riminton from Barclays. Please go ahead. Your line is open.
Hi. Thanks for your time this morning. I just had a quick question regarding En+'s announcement earlier this year that they were going to suspend dividend payments for 2019. That is for 2018 payments in this year. Can you just talk at all about how that might be affecting your outlook on dividends? Will you also be suspending payments this year, or do you still expect to pay your dividends to En+ and other shareholders? Thank you.
Thank you for your question. I suggest that En+ decisions and dividends and so on are discussed with En+. As for RUSAL, we do expect to have a discussion at the board level later on this year. Depending on the situation with the company's cash flow, the board will make a decision. So far,
Okay. Thank you.
no decision has been made on suspension or otherwise. Mm-hmm.
Okay, thanks for clarifying.
Thank you. Our next question comes from Sergey Donskoy from Societe Generale. Please go ahead. Your line's open.
Yes. Thank you. I have just one question. Your VAP products, the sales were low in the first quarter. They are going to hopefully normalize going forward. Could you remind me, what is the extra transformation cost per ton that you incur to produce a ton of VAPs? Or alternatively, what is the additional EBITDA per ton that you generate on every ton of sales? Thank you.
Sergey, thank you for your question. The extra margin that we generate on average per ton of VAP product varies between $80 and $100 per ton, depending on-
Thank you very much.
the type and the period and the product premium. Mm-hmm.
Thank you very much.
Thank you. Our next question comes from Rahul Bhat from JPMorgan. Please go ahead.
Hi. Thank you. Thanks for the presentation. Can I just ask a couple of questions on VAP sales? By when do you expect sales to normalize in this segment to the 40%-45% that was there that we used to see previously? For production in 2019, can you give any guidance on what should we expect for the full year?
Rahul, thank you for your question. The production figures will remain stable overall. If you're talking about the entire amount of metal we produced, it will be at 3.8 million tons approximately. As for VAPs, we finished 2017 and beginning of 2018 at approximately 50%. The figure slid after the sanctions. The average for 2018 was 45%, and right now we are starting to grow the share of VAP back. We hope that by the end of the year, the average percent will be just under 40% or so. We are already seeing the share of VAP climb in the second quarter, so it's in line with our expectation. We expect to come back fully to the share of VAP that we had prior to sanctions in 2020.
Thank you very much. If I can also ask one follow-up on the Glencore sales contract that was due to be renegotiated. Is there any update on that? Is that contract more on commodity aluminum sales or is that VAP sales? Thank you.
Thanks for your question. Glencore contract predominantly includes primary metal. It may include some optionality with VAP products, but they represent rather a smaller share. We target to sell our VAP products to the end customers in our markets. We are still discussing the conditions with Glencore, and once it's finalized, we will make the appropriate announcement.
Perfect. Thank you very much.
Thank you. Our next question comes from Alexei Ilin from Templeton Asset Management. Please go ahead.
Yeah. Good morning, everyone. I have a couple of questions. Can you provide the CapEx breakdown for the full year? As you mentioned, the full figure, maybe you can provide some details more, please. Hello?
Yeah, we're just looking for the right slide in the presentation. You can see kind of the key projects described on slide number 13. Out of the full year CapEx, approximately 45%-50% will relate to maintenance and environmental projects, and the rest will be development projects. The most significant development project for this year is the Taishet Aluminium Smelter. The other significant projects include Taishet Anode Plant, Dian-Dian Bauxite Mine completion, and the Friguia Refinery relaunch in Guinea. So those are the major kind of spends that we expect this year.
All right. The second question is about the cash flow statement. You have some acquisitions of subsidiaries, and you also have the same similar number in last year. Can you explain what this is?
This year, we completed an acquisition of K&K. It's a wheel producer. Last year, I would have to check exactly what was there last year, but perhaps some payments for another wheel manufacturer, SKAD. As you know, we've consolidated a significant share of Russian market for wheel manufacturers. It is now disclosed in our production figures, and so on.
All right. Can you explain also what are the investments in that case? Because you spent it last year, and you also have some short-term investments on the balance sheet at the moment. Is it the same amount of money or it's different?
We do from time to time invest in short-term, high liquidity promissory notes to generate additional interest on our cash balances. So that would go through other investment lines in the cash flow.
Is it basically cash equivalent or something else?
It's not classified as cash equivalent due to the conditions attached and IFRS requirements, but those promissory notes are high liquidity, and they can be easily converted into cash.
Okay. Can you explain also a bit on segment reporting, because it seems that you changed it a bit, because in the previous you were showing alumina segment EBITDA, and now it's totally different. Can you explain the reason for the change in disclosure?
We haven't really changed anything in comparison with the previous year. There was a change, but it happened actually before 2018.
Yeah. Sorry, but if you look at the full year presentation, you can see that in alumina segment, you were selling closer 2.3 million tons of alumina a year, but now we can see only you are selling around 400,000 tons. It seems that you have changed it completely.
We can get back to you separately on that. I am not sure what we have changed. We definitely did not make any significant changes in the presentation. The sales of alumina may go down for different business reasons. We had a contract with Kazakh alumina producer, Pavlodar. The amount that we are purchasing from them this year will go down as comparison to previous years. The sales, therefore, to third parties will go down as well to maintain full integration. But we do not have any significant changes otherwise.
All right. Maybe the last question from my side. As far I remember, you have coal assets, but you cannot really disclose any numbers on them. Last year should be really profitable for the company. Maybe you can share some numbers on EBITDA you are getting from the company and how much you actually receive as the dividends from coal assets.
The coal assets in Kazakhstan are accounted by using the equity method in our financials. The line that includes our equity share in Norilsk Nickel also includes our equity share in coal assets, and further disclosure is provided in the financial statements. The dividends are also included in the cash flow statement. The coal assets undertaking certain investment projects, and last year, due to sanction restrictions that applied also to them, the dividend flow from them was restricted.
Okay. Do you expect them to resume this year?
We do expect that there will be dividend payments this year. As far as the amount is concerned, the decisions have not yet been made.
Okay. Thank you very much.
Thank you. Our next question comes from Timothy Riminton from Barclays. Please go ahead.
Hi there. Just a quick follow-up from me. I noticed that your income taxes paid in the cash flow statement have jumped quite considerably versus last year and also recent periods across last year and 2017. Could you explain why they are so much higher in a quarter where you generated less revenue and profit? Thanks.
Thank you for your question. Indeed, there was a payment made in the first quarter due to reassessment of profit tax for several prior periods based on recent court practice with respect to certain tax positions that the company has taken. This amount relates to 2015 and 2016, and we do not anticipate any similar accruals and payments in the future years.
Thank you.
Thank you. We will now take our next question from Daniel Major from UBS. Please go ahead.
Thanks. A follow-up on working capital. Looks like it was fairly stable in the quarter, a small release from payables. Can you give us any update on guidance on your expectation about further releases of working capital over the next 12 months, obviously, after you built working capital over the last 12 months?
Thank you for your question. As we previously stated, we expect to release $900 million - $1 billion this year from the working capital, and that expectation did not change. Indeed, during the first quarter, the process was not as expedient as we wanted it to be due to the short term of license expiration and so on. We do see good progress now in the beginning of the second quarter, and we believe that we will move to our targeted release by the end of the year.
Great. Just on that, I assume you will release any metal inventory or any difference between production and sales in 2018 will fully reverse in 2019. Is that still the expectation?
That's our expectation, yes.
Cool.
Correct.
Thanks.
Thank you. We will now take our next question from Sergey Donskoy, from Societe Generale. Please go ahead.
Yes, thank you. I have a follow-up on your CapEx breakdown. I think that in the first quarter, about a third of your total CapEx spend was in some other operations. It was not classified as alumina or aluminum. I think actually last year was the same situation. Around a third of your CapEx was not really classified as either alumina or aluminum. If you could explain where this money is going, to what projects. Second thing, it's not really a question, but it's maybe a request. BEMO is one of the integral parts of your business, really. But you don't actually provide any standalone financial information for this JV, not even any highlights as revenue or EBITDA on that debt. I think it would be very helpful in the future if you could enrich your slide pack and include some of those numbers.
Thank you, Sergey. We will check our segment reporting. However, I would confirm that the absolute majority of our CapEx went to our alumina and aluminum assets, with exception of acquisition of K&K. But that, I believe, is a separate line item on the cash flow. So we will check and come back to you on that. With respect to BEMO project, we will consider your request for our future presentations.
Thank you.
But we do account for them using equity methods, similarly with the coal assets and Norilsk Nickel. I believe that the disclosure of their key financial results is usually provided in our annual financial statements.
Yes, I realize that, but just that I think unlike your coal assets, BEMO is a much more important part of your equity story. As for Norilsk Nickel is concerned, we have plenty of information from the company itself. BEMO is kind of a black box.
As I said, we will see what we can do on the further disclosing it in the next presentation. Thank you.
Okay. Thank you.
Thank you. There are no further questions at this time. I would like to turn the call back over to you, Mr. Diachkov-Gertcev, to conclude the call.
Actually, I think this will end our call. Thank you, everyone, for your attention, and goodbye.