Earnings Call: H1 2021

Aug 19, 2021

Thank you for standing by and welcome to the MMG Limited 2021 Interim Results Presentation. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. I would now like to hand the conference over to Mr. Brent Walsh, Head of Corporate Development. Please go ahead. Good afternoon, and welcome to MMG's 2021 interim results briefing. I will shortly hand over to MMG's CFO, Mr. Ross Carroll, who will provide an overview of the interim results before taking questions. The MMG management team is presenting today from their homes in Melbourne, Australia, where we are currently under COVID-nineteen lockdown conditions. Please bear with us should there be any technical difficulties. Our CEO, Mr. Jeffrey Gao is unable to join us today due to travel and quarantine requirements. I will now hand over to Mr. Carroll. Thank you, Brent, and good afternoon to everyone, and welcome to MMG's 2021 interim results briefing. I trust you have read through our results materials, which were released to the Hong Kong Exchange yesterday. Today, I will discuss the company's first half results and provide an update on our outlook. After the presentation, we will welcome your questions. The first half of twenty twenty one was a very successful period for MMG, both operationally and financially. Most importantly, we maintained our strong safety record and solid production rates at all our sites despite the ongoing challenges associated with the COVID-nineteen pandemic. On the financial front, we delivered a record 6 monthly profit performance with net profit attributable to equity holders of US400 $1,000,000 and a very substantial net debt reduction of US1 $200,000,000 This demonstrates to our shareholders the earnings and cash generating power of our portfolio during periods of strong metals prices. I will take you through the detail behind these numbers shortly. MMG's number one value of safety. MMG's pursuit of an injury free workplace embeds a safety first culture at all times. Our total recordable injury frequency rate was 1.17 per 1000000 hours worked for the 6 months, the 30th June 2021. This represents an improvement on the 1.82 recorded for the same period last year. We continue to rank right at the bottom for injury frequency rates when compared to our global mining peers. To combat the spread of COVID-nineteen, MMG welcomed global vaccine rollout programs alongside our own measures to limit transmission of the virus at all of our sites. The regional sites continue to reinforce enhanced hygiene measures together with social distancing and health screening for our employees and visitors. In support of nearby communities, Los Pampers donated life saving medical supplies and in partnership with local authorities assisted social enterprise development projects in Peru. At our Kintsbury mine in the Democratic Republic of the Congo, the COVID-nineteen vaccination campaign was conducted to protect employees and their families. For more on our sustainability performance, including our 2020 report and a summary of our work and environmental, social and governance initiatives, please see wemindforprogress.com. Now let me briefly make a few comments on commodity markets. MMG's portfolio has leveraged what we refer to as megatrends, which are decarbonization, electric vehicles and the urbanization of developing economies. We believe that these 3 megatrends will drive rapid demand growth for our core commodities over the next decade with some data included in the chart in the top right hand corner of this slide. To put some context to the numbers behind the projected demand growth to 2,030, an expected 5,800,000 tonne increase in copper demand was 25% of today's market, 2,700,000 tonnes was 21% of the zinc market and 120,000 tonnes was more than 100% of the current cobalt market. To keep pace with this demand, we are going to need significantly more investment in new mining capacity. However, many potential projects facing significant uncertainty. This includes technical complexity, escalating sovereign risk, permitting and approval delays, pressures from governments and communities and employee demands. As a result, the new project pipeline is now materially smaller than it has been in the past. As you can see, between 2,008 and 2021, this project pipeline has more than halved. Looking at copper specifically, if you compare the forecast 5,800,000 tonne growth in demand with this project pipeline of only 2,200,000 tonnes as well as declining grades and the expectation of net copper mine closures over the coming decade, you can see the emergence of a very challenging supply demand dynamic over the coming years that will likely generate a period of sustained stronger prices to incentivize new supply. I'll now briefly touch on the current situation in Peru. Firstly, in terms of logistics and our interaction with communities along the whole road at Las Pampas. During the first half, road availability was relatively uninterrupted, allowing for longer transportation periods and a significant reduction in concentrate inventory levels. For the 30th June 2021, inventory at the mine site had been reduced to approximately 13,000 tonnes of copper in concentrate compared with a peak of over 65,000 tonnes at the end of 2020. The fact that we are able to sell this inventory into a very strong copper price environment was fortuitous and one of the drivers behind our strong profit and cash flow result for the half. Now regarding the evolving political situation in Peru. Let me first say these are early days for the new government. The new presidency of Pedro Castillo follows a very tumultuous 5 year period for Peru. For all of Peru, we hope the coming period is more politically stable and the outstanding economic performance of Peru over recent decades can continue. For the mining industry, the new presidency has made an early commitment to work us through the concept of social profitability and to better understand tax arrangements. While the concept of social profitability is yet to be defined, we have met with the Minister of Mines and welcomed the spirit of the early discussions. We will continue to reinforce a significant positive contribution with the Los Bambres mine on the local and the national Peruvian economy. This includes over 6,000 jobs, dollars 4,400,000,000 of taxes and royalties and accounting for almost 1% of Peru's national GDP. And even more importantly even more important is the regional impact. Opirimac, which hosts Los Bambas, has been the fastest growing region in Peru, is a direct result of Los Bambas' contribution. Our direct investment in the community has exceeded SOL1 1,000,000,000 with many times that amount flowing through the mining cannon to the regional communities. I want to reassure investors that the issues we face in the logistics corridor are not anti mining. At present, it is just too easy for a handful of community members to walk on the road and block our logistics. There's an issue we are working together with the government and communities to improve. Peru is a country that we remain very optimistic about from an investment perspective and has passed an untapped wealth of mineral resources that will be required to meet some of the mining supply challenges I referred to earlier. We look forward to working with the new government and the rest of the mining industry to unlock this potential. Moving on to the numbers. There's certainly a very nice set of numbers to be presenting this time around. Our revenue has more than doubled on the back of higher commodity prices, higher production rates and higher sales volumes. This combined with strong cost control resulted in profit after tax of US584 $1,000,000 including US400 $1,000,000 attributable to shareholders. Residual profit to minorities reflects 37.5 percent of Los Bambres that is owned by Agile and Venture Partners. Slide 12 sets out the EBITDA bridge between the first half of twenty twenty and the first half of twenty twenty one. We don't intend to spend a lot of time on this slide because the driver of the stronger performance is self evident. As already mentioned, higher prices, higher sales volumes and good cost control. To summarize, copper and zinc prices were 59% 37% higher respectively. Los Padma's sales volumes contributed to around $200,000,000 of revenue uplift, partly offset by a $60,000,000 reduction at Kintsbury. Both Dougal River and Moseley sales volumes were also modestly higher. And finally, the main driver of the $138,000,000 increase in operating costs was Los Bambas, where cost increased commensurate to higher mining and processing volumes and higher transport costs and royalties due to the increased sales volumes. Costs were lower at Kintabiri due to lower mining costs and the smaller cost increases at both Dougal River and Rosebery were mostly due to stronger Australian dollar U. S. Dollar exchange rate. This slide gives our investors an indication of our pure earnings leverage, the changes in commodity prices and FX. Probably the one thing to note here is that following the strong increase in both copper and zinc prices over the first half of twenty twenty one, we executed a series of commodity hedges in recent months. The hedging program is primarily used as a risk management tool given the company's high gearing levels and is designed to protect the strong free cash flow generation of the business. The majority of these instruments have a color structure that provides a floorplice protection and retain some upside exposure should prices rise further. This analysis assumes that the prices remain within the hedge range for copper and zinc, which is broadly between $0.14 $5 for copper and $1.20 $1.45 for zinc. Obviously, anything below that range and we have downside protection and anything above that range and our price participation in the price increase on hedge tons is capped. Nonetheless, it still remains the case that copper zinc and the A dollar, U. S. Dollar have the biggest sensitivity with a 10% pound per pound change in copper leading to an $85,000,000 or a full year impact on EBIT, a 10% change in zinc price leading to a $45,000,000 impact and a 10% movement in the Australian dollar leading to a $36,000,000 impact. Moving on now to our debt reduction. I think all our analysts and investors are aware that this was and needed to be a major focus for MMG. We've continued to progressively reduce our overall debt levels. Focusing on this half, the strong operational cash flow and the US300 million dollars equity issuance in June helped reduce our net debt by a massive US1 $200,000,000 This is obviously very significant when compared to our current market cap of around US3.7 billion dollars and highlights a value creation delivered to our shareholders in the first half. The US300 million dollars new share placement was also a significant milestone during the half year. This transaction was very well supported by new and existing long term global investors and it also facilitated the modest dilution of our major shareholder, CMC, from just over 72% to around 67% to enable greater minority shareholder participation and improve share trading liquidity. Importantly, with debt now down from a peak of over $10,000,000,000 5 years ago, are now in a much stronger position to move into our next phase of growth. I'll now give you a quick update on CapEx. We now expect that total capital expenditure in 2021 to be between $600,000,000 $650,000,000 This is a reduction from guidance earlier in the year of $750,000,000 to $800,000,000 The reduction is largely due to the delayed development at Chalcobamba as well as the 3rd ball mill project both at Los Bambas. To provide a breakdown of the anticipated CapEx, approximately $500,000,000 is attributable to Los Bambas including around $250,000,000 related to deferred stripping activity with $100,000,000 to $150,000,000 across all the remaining three sites. I will now quickly run through a few of the key points in relation to our 4 operating sites. Los Bamba's production was 10% higher than the first half of twenty twenty due to higher workforce capacity and increased productivity following the COBRA related shutdown last year. EBITDA was 2 60% higher due to higher copper prices and increased sales volumes. And C1 costs were $1.08 per pound compared to $1.15 per pound in H1 of 2020. The lower C1 was due to higher copper production and higher byproduct credits from gold moly sales. As mentioned earlier, we will work with the new Governor of Peru in the Huankiri community to advance development of Chalcabamba. Under the previous government, we have moved through all the prior consultation requirements. However, the final decision was unfortunately handed over to the new government. At this stage, we're unable to give a clear time to have on this process. We will keep investors updated with all relevant developments. We remain focused on maintaining a COVID safe workplace to help our people and high workplace availability, the key. MMG's full year guidance for copper production at Los Pampas is now expected to be around 310,000 tonnes in 2021, with cost guidance maintained at US110 dollars to US1.20 dollars per pound. Keeping on this pump is one of the lowest cost copper mines of this scale in the world. Kincabirri's copper cathode production fell by 31 percent compared to the first half of twenty twenty due to a pause in mining in the Q4 of 2020 and the processing of lower grade stockpiles in third party ores during the current half. However, high copper prices, stable plant performance, lower operating costs resulted in EBITDA of $94,700,000 compared to $8,200,000 in the first half of twenty twenty. Tier 1 costs fell to US1.81 dollars per pound in the first half and US1.86 dollars per pound in the same period last year due to the lack of mining costs during the period. This was partially offset by the lower production volumes. Looking forward, we expect to resume mining of the remaining oxide reserves at Kintabiri in the Q4 of this year. This is in anticipation of the next phase of Kintabiri's development. We expect final approval in the second half of the Kintsbury expansion project, which includes the processing of the mines, sulfide resource and the addition of the cobalt circuit. This project will extend Kintsbury's life by a further 10 years and take annual equivalent production up to around 100,000 tonnes of copper equivalent and importantly would make MMG a significant global producer of cobalt. For 2021, MMG's full year guidance for copper production at Kintsbury is unchanged at 50,000 to 60,000 tonnes. Cost guidance was lowered to $2.05 to $2.15 per pound, due to the lower than anticipated mining costs in 2021. At Dougal River, operational performance was very strong. During the half, the focus on mining extraction methods to reduce waste and mine sequencing improvements led to an uplift in feed grades to the mill. This combined with processing circuit optimization work resulted in record recovery and higher production volumes during the first half. EBITDA of US101.7 million dollars was significantly higher than the US9.1 million dollars result for the first half of twenty twenty. Significantly lower treatment charges falling from around $300 a tonne to $1.59 a tonne of concentrate as well as higher production volumes also helped reduce C1 costs to $0.63 per pound, which is 17% lower than last year. We continue to focus on new mine exploration to better understand additional zinc and copper opportunities on the lease. With a 20,000 meter surface drilling program kicking off in late May. In the nearer term, continued debottlenecking and optimization works are expected to deliver stable mine capacity of 2,000,000 tonnes per annum and annual zinc production approaching 200,000 tonnes from 2022 onwards. For the full year 2021, we expect Dougal River zinc production to be between 118,000 and 190,000 tonnes. C1 cost guidance has been lowered to between $0.65 $0.70 per pound, factoring in the lower prevailing TCs being partially offset by the stronger Australian dollar. And finally, moving on to Rosebery. Despite the age and depth of the mine, Rosebery produced over 37,000 tonnes of zinc during the first half and 85,000 tonnes in zinc equivalent terms, including lead, copper, gold and silver byproducts. This was 23% higher than the first half of twenty twenty and with byproducts contributing more than 50% of revenue in the period, that really shows the benefit of the polymetallic nature of the mine. EBITDA of US106.2 million dollars represented 119% increase on the first half of twenty twenty. This was due to higher metal prices and higher production. C1 cost for the half benefited from this material contribution from precious metal byproducts coming in at negative $0.52 a pound, making Rosebury a highly cash generated operation. Rosebury resource extension drilling is yielding encouraging early results for the extension of the life of this important asset. In the first half, we completed nearly 50,000 meters of surface and underground diamond drilling. And over the remainder of the year, we will continue to evaluate life extension options for Rosebery. This also includes evaluating additional tailings storage options to support this anticipated life extension. These plans face more position given the environmentally sensitive location of Rosebery, and we are working very closely with the federal and state regulators and community to find the best solution. We look forward to providing with a more detailed update on this extensive program in upcoming reporting periods. MMG's full year guidance was zinc production at Rosebelle is unchanged at 60,000 to 70,000 tonnes. Given a very strong first half cost performance, C1 guidance is reduced to negative $0.20 to $0.00 per pound. Now finally to finish off, we move to strategy and the outlook. In summary, the first half of the year was a record breaking period for MMG. The net profit attributable to equity holders of $400,000,000 and a debt reduction of US1.2 billion dollars dramatically strengthening our balance sheet. For the full year, we expect to produce around 400,000 tonnes in copper equivalent terms. And assuming spot commodity prices can continue to prevail, this would lead to a free cash flow of around $1,700,000,000 We remain confident about our overall market opportunities and outlook. Copper, zinc and cobalt are critical raw materials and will benefit from the rapidly growing demand for renewable energy investment, electric vehicles and urbanization. We will continue to advance the Los Bamba's development plan and Kintsaburi expansion project as well as maximizing Tugal River and Rosebri mine life extension potential. In closing, let me reaffirm that MMG's vision is to build the world's most respected mining company with an ambition to double the size and value of MMG and then double again by 2,030. Together with the support of our major shareholder, we are well positioned to build wealth through the development of our people and forging strong ties and economic growth in the countries where we operate. On behalf of the MMG management team, I thank our shareholders, host communities, contractors and all our MMG employees for their support during their challenging times. Thank you for your time today. And I will now hand back to the moderator, who will open the line to questions. Thank Your first question comes from Laurence Lau from B. Riley. Your first question comes from Laurence Lau from BOCI. Please go ahead. Hi, Ross. Thank you for the presentation. Just got 2 minor questions, if I may. First of all, I just want to clarify the current 310,000 tons output target for large members. You don't include anything from Charcot Bamba, right, for this year? And secondly, you mentioned that you plan to resume the mining activity in Kinsabiri in Q4 this year. So to what extent because we have been seeing in the past quarterly ore mine in the region of close to 1,000,000 tonnes in the best quarter. So to what extent you expect in the Q4 in terms of mining activity? Thank you. Yes. Well, thanks very much for the questions, Laurence. Firstly, the 310,000 tonnes does include a small amount of production from Chalcobamba. So if we don't get access to Chalcobamba at all during this half year, there will be some weakness around that number. So there could potentially be another 5,000 to 10000 tonnes lower if there's no access to Chalcopamba at all. But as I mentioned during the presentation, we are unable to give a time frame for that approval. But so potentially a minor impact. With Kintsbury, yes, we anticipate production starting again in the Q4. I think a couple of reasons that the volumes won't be massive to start with. Firstly, we have to get the mine back in sort of good working order because obviously when you're not mining, you're not doing some maintenance we're in the pit. So it'll be I think largely in the Q4 setting up the mine for full production next year. So you may see 1,000,000 to 2,000,000 sorry, let me get the numbers right. You may see about 1,000,000 tonnes of movement in the mine per month, but it's not going to be really significant volumes until next year. Okay. Thank you, Chris. Thank you. Your next question comes from Jack Hsieh from Citi. Please go ahead. Hey, Charles. This is Jack from Citi. Thanks for the presentation. And first of all, congratulations on great results for the first half of the year. Well done. And so a couple of follow ups. The first thing, of course, is on last November. So, in a downside case, right, so if in a fair case, the new government isn't that cooperative and chakobamba approval is missing. If that's the case, without chakobamba, what would be the say sustainable output level for Ferro Bamba going forward? Is it around 300,000 tons annually going forward or it's going to be slightly lower than that? Just in a very, very bare case if charcoal bomb is missing say in the next in the foreseeable future. So that's the first one. And the second one, we heard that on the ground that recently there is another road blockage. Any helpful update on that? Or details will be helpful on the recent blockage at Los Bambas. And also 2 more follow ups regarding Kingsbury. On Kingsbury, regarding the cobalt circuit, right? The cobalt circuit, potentially how what would be the production run rate going forward for cobalt? You mentioned that it could turn into a meaningful supplier, but how meaningful? Any color or any rough color on that would be helpful. And also follow-up on the sulfide ore, sulfide resource of Kingsbury. I recall that Kingsbury has been running on SX EW. So if you're going to get more sulfide ore, what you're going to do with the production process? Are you going to sell the concentrates? So we have a quota for exporting the concentrates at the moment? Or are you going to sell more concentrates to the local smelters? Thanks. Yes. Thanks for the questions, Jay. Yes, with firstly with regards to LB and if cholcabamba approval isn't granted, I must say, we're not planning for that in the sort of medium term. But as I said in response to Laurence's question, we would be somewhere between 300,000, 310,000 tonnes for this year. And then I think if it would stay that way for a prolonged period of time, we would probably be able to run Ferro Bamba at the sort of 270,000 to 300,000 tonne run rate whilst we're gaining Chalcopamba approval. But I think when you hear all this talk about what's happening in Peru, I mean, part of the deal needs to be that sort of us to cooperate with the government. We also need the government to open things up because ultimately it's holding back the country as well as also holding us back. With the blockage, you're right. There's a blockage that's lasted for 3 or 4 days. That was after a 60 day truce was declared. Now that blockage has actually been cleared today. And we have some trucks moving down the whole road already. And then we'll be back to a full complement of trucks as of tomorrow. So I think we still have about another 45 days of sort of formal discussions. In regard to your questions on Kintsaveri, cobalt, the cobalt circuit will be depending on the year and the grade, it will be about 3000 to 4000 tonnes a year. So bearing in mind, the total market is about 100,000 tonnes at the moment. 3% to 4% of the global productivity. And then finally, your question in relation to the sulfide oil plant. We will be building a roaster and therefore producing our own cathode, so there'll be no need for a concentrate license. I think that answers all your questions. Yes. Thank you, Ross. Yes. Thanks, Jack. Thank you. You. Your next question comes from Chris Hsu from Horizon Asset. Please go ahead. Hi, Ross. Thank you very much for the presentation and congratulations on the great results. I've got three questions. The first one is regarding the free cash flow sensitivity that you have shown on Slide 29 in the presentation. So if we take the year to date average for copper as well as for zinc, which I believe will be around 4.2 for copper and then $1,300,000,000 for zinc. The free cash flow generation will be about $1,68,000,000 right? Now if we look back at the presentation, you have given in March for the full year results, right? On Page 34, a similar matrix was given. And at that time, at $4.2 copper price and $1.3 in price, the free cash flow generation expected was only around $1,270,000,000 So there is a $400,000,000 difference, right? Now I understand that's about maybe $150,000,000 can be explained by your lower CapEx guidance, right? But how about the rest, the $250,000,000 That's my first question. Yes. Chris, I think the answer off my top of head there too is that we've also had the rundown of the inventory from Las Palmas. So that was a pretty significant movement as well. But Brent's on the line and Brent would have prepared those charts. I'm not sure if there's anything you could add off the top of your head, Brent, or whether we need to get back to Chris. Yes. No, that's correct, Ross. I suspect the previous chart didn't include the inventory at Los Bamba. So that was probably just on a production basis. So this is more indicative and obviously, given we're halfway through the year, I think the current chart is what you should be basing your modeling off. Yes. Well, actually, in the 2020 results presentation, Page 34, it does say it assumes the sale of the La Fonda's 2020 closing copper concentrate balance. So I think that has already been assumed, right? Okay. Yes. So Chris, we'll come back to you on the yes, okay. Okay. Got it. Got it. No problem. Yes. Okay. Yes, we'll follow-up. And the second question is, could you give us some color on how we should think about dividends going forward? Because obviously, the balance sheet is becoming deleveraged very quickly. And I mean, what sort of metric should we be focusing on when we think about whether dividends should be resumed and at what level and so on? Thank you. Chris, I think with dividends, we're still some way off there. And I guess, firstly, our gross debt is still around 6.5 $1,000,000,000 which is still close enough to twice our market cap. So we would still focus want to focus on getting our net debt down in the short term. So I wouldn't think we'd be looking at dividends at least for the next couple of years. And then obviously, that's going to depend on what happens with commodity prices. If you sort of think back to 12 months ago when the I think the average copper price for the first 6 months of last year was $2.50 We were really hurting. So we would, I think, be a little bit conservative about paying dividends. So I wouldn't build anything into your model just yet. What I probably would just remind you of though is in prior years when we have made large prepayments against our debt, our share price has migrated along as a result of that. So I think it's a bit to TSR through the share price rather than through dividends. Got it, got it, got it. Thank you. And my last question is regarding the production of molybdenum from Los Vanda's because we can see that the revenue from molybdenum has actually gone up by something like 17 times year on year. So I'd like to understand. So in the report, it's mentioned that there was a debottlenecking of the molybdenum plants that has increased the production, right? I mean, when was that effective? Since when? I think the memory that would have come into effect in the sort of the latter part of last year, so we didn't really see any significant benefit last year. So again, it's really the 1st 6 months of this year where we've seen those benefits. And we've had the higher production and also the pricing has been stronger as well. So as I said, really, the 6 months is the first time we've seen the real full impact for the period. Got it, got it. Understood. Okay. Well, thank you very much. Thank you for my questions. Thank you. Yes. Thanks, Chris. Thank you. Your next question comes from Joy Zhang from Goldman Sachs. Please go ahead. Hi. This is Joy from Goldman Sachs. Congrats on the great results. And I have two questions. First is on the interest effective interest rate. I saw it has declined a lot in the first half. What do you think of the trend in the second half? And the second question is about probably the future M and A because we already see that the gearing has declined a lot with core price improvements and a strong cash flow. So suppose our financial stress is now that strong as before. So what do we think of the priority over the M and A expansion in the overseas assets versus deleveraging? And how we prioritize the 2 targets? And while we also considering that our assets is currently quite focused on Peru, do we have some plans to diversify the asset exposure risk? Yes. Okay. Julie, good questions. Thank you. Firstly, in relation to the interest rates, we would have we've done some refinancing of our Dougal River debt. So we would expect interest rates in the second half to be maybe 1 point 2 percent or 0.3 percent lower than what they were in the first half, but not significantly lower. Now, Greg, going back to your question on M and A, we are still a growth company. And whilst we're very keen to reduce our gearing levels, we are still here to grow. So and it's a bit of a 2 edged sort of sorted answer I'll give you. But the idea is we do want to grow that the M and A markets are very tough with the copper and zinc prices being so high now. So trying to find the right value adding opportunities is quite difficult. But we will continue to look and we're still being very disciplined in how we look. But so in the meantime, we'll be deleveraging. But please don't think that we're just going to continue deleveraging at the expense of the right M and A opportunity because I think clearly over the years, we said we were a growth company and that's what the expectation of our major shareholder is. And then I think the last part of your question was just about getting some sovereign risk diversity. We are I guess the areas we're focusing in the African Copper Belt and then the Andean region in Latin America. So ideally, we would probably like to find something in Chile as well. But Chile has had its own sort of political issues recently as well. But it really is a matter of trying to find the right project, and we're still confident, whether it be the DRC or Peru or Chile, that we can operate in those areas. I think, unfortunately, there's very little opportunity for us to grow in Australia. As much as we'd like to grow in Australia, which is an easier environment to operate in, there's just not really any growth options for us here in Australia. Okay. Okay. That's very helpful. Thank you all. Yes. Thanks, Julien. Thank you. There are no further questions at this time. I'll now hand back to Mr. Caroll for closing remarks. Yes. Well, I just once again like to thank everybody for taking their time. And I think like we are I hope you're all very pleased with the financial results this year. I think it marks a big turning point for MNG, and we hope to continue with this strong financial performance into the future. So thanks very much. That does conclude our conference for today. Thank you for participating. You may now disconnect.