Earnings Call: Q3 2020

Nov 5, 2020

Good morning, ladies and gentlemen, and welcome to the Franco Nevada Corporation Q3 2020 Results Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on November 5, 2020. I would now like to turn the conference over to Candida Hayden. Please go ahead. Thank you, Veronica. Good morning, everyone. Thank you for joining us today to discuss Franco Nevada's Q3 2020 results. Accompanying this call is a presentation, which is available on our website at franco nevada.com, where you will also find our full financial results. Sandeep Brenna, CFO of Franco Nevada, will provide a brief review of our results Ian Gray, VP of Business Development will provide a business development update and Paul Brink, President and CEO of Franco Nevada will comment on our growth outlook. This will be followed by a Q and A period. Our full executive team is available to answer any questions. We would like to remind participants that some of today's commentary may contain forward looking information and we refer you to our detailed cautionary note on Slide 2 of this presentation. I will now turn over the call to Sandeep Brenna, CFO of Franco Nevada. Thanks, Candida. Good morning, everyone. Q3 2020 was a return to some form of normalcy for Franco Nevada as we saw most of our royalty and stream interests resume normal operations by the end of the quarter, other than the Golden Highway assets, which are still on current maintenance and are expected to remain so for the remainder of the year. Our partners at our royalty and stream assets have done a great job managing the COVID-nineteen pandemic and implementing the necessary safety protocols and procedures, while still delivering excellent operating performance. With the increase in precious metal prices and the return to normal operations, Franco Nevada delivered a very strong financial quarter, achieving a number of financial records. On Slide 3, we have highlighted the gold and gold equivalent ounces for the 3 months 9 months ended September 30, 2020, 2019. Overall, despite the impact of the pandemic, GEO sold were fairly stable for both periods shown 134,817 in Q3 2020 compared to 133,219 a year ago. Gold ounces represent 80.6 percent of GEO sold for the quarter compared to 76.4 percent a year ago. For the quarter, we had strong performance from a number of key assets. 4 key contributors were Cobre Panama, Candelaria, Antipakay and Guadalupe. Cobre Panama resumed production in early August and reached full production ahead of schedule. The ramp up has gone well and we look forward to the growth Cobre Panama will deliver for the company in the coming years. Candelaria was a strong contributor, resulting in just over 20,000 GEOs sold compared to 16,573 a year ago. It was the largest revenue generator for Franco Nevada during the quarter being 14% of total revenue. Subsequent to quarter end, Lundin Mining temporarily suspended operations due to labor union issues. This suspension will impact a portion of the gold and silver deliveries in the Q4 for the company. Our stream on Guadalupe in Mexico with core had a strong quarter delivering 23% more gold ounces than a year ago due to mining of higher grade, while Antipakai Geo sold were relatively flat year over year, but significantly higher than Q2 2020. One of the strengths of Franco Nevada is the depth of the portfolio. During a rising commodity price environment, our net profit interest royalties typically do well. 2% MPI on the Intralake underground deposit within Hamlo. The company earned approximately 13,000 GEOs or $23,900,000 in revenue from Hemlow during the quarter. The increase was due to the rising gold price along with higher production on the intralate plains. It can be difficult to predict what the NPI amount will be each quarter due to the nature of the calculation and timing of incurring development costs. Franco Nevada did record approximately $13,000,000 in revenue for the MPI that was related to prior periods. With respect to silver and PGMs, the company did recognize less GEO sold during the quarter compared to the prior year. This was in line with expectations. With respect to silver, please note that the Antamina deliveries during Q3 were based on production from Q2, which had been impacted by the pandemic. Slide 4 highlights our total revenue and adjusted EBITDA for 3 quarters shown. As you can see from the bar charts, revenue has increased significantly compared to the comparable quarter shown. The $279,800,000 in revenue in 3rd quarter is a record for the company as is the adjusted EBITDA of $235,100,000 for the quarter. A margin of 84% was achieved. The average gold price for the quarter was $19.11 per ounce compared to $14.74 per ounce a year ago, a 29.6% increase. This increase in gold price combined with the increase in gold ounces sold in the quarter resulted in gold revenue increasing from $151,100,000 in Q3 2019 to $206,100,000 a 36% increase. 3rd quarter also saw a rebound in energy revenue as it increased from $14,600,000 in Q2 2020 to $22,800,000 this quarter as we saw a rebound in oil and gas prices. For the quarter, gold was 74 9%, PGM 8%, other 1% and energy 8%. As you turn to Slide 5, you will see the key financial results for the company. I won't get into the detailed numbers, but the company delivered strong financial results with it achieving records for a number of the key financial metrics during the quarter. As mentioned, the increase in revenue and adjusted EBITDA was predominantly due to the increase in precious metal prices. Adjusted net income and adjusted net income per share also increased significantly in 3rd quarter. Adjusted net income of $152,300,000 or 0 point 8 dollars per share were increases of 50% and 48% respectively over the prior year. This increase was a combination of the higher revenue, but also to the lower depletion being recorded. Depletion is dependent on the source of gold equivalent ounces sold during a period. For example, Hemlo, which was a significant contributor during the quarter, has a nominal book value and thus there is no depletion associated with the GEO sold from this asset. With respect to depletion, the company is now guiding depletion expense of between $225,000,000 to $245,000,000 for 2020. Franco Nevada has always been a royalty company, although it did add streaming to the business model a few years ago. Slide 6 breaks down the mix between streams and royalty revenue for the quarter. The streams that Franco Nevada has added have been very successful for the company, adding significant top line growth. They have become the largest component of our revenue generating $170,400,000 in revenue during the quarter. However, it is royalties whether mining or energy which generate higher margin and thus cash flow. As you can see, the costs related to royalties are minimal, with a combined cost of $2,000,000 related to the 109,400,000 in revenue generated by royalties. We believe our business model of both stream and royalty assets will allow us to continue to achieve peer leading EBITDA margins. With respect to margins, the chart on Slide 7 illustrates how the margin for the company increases as gold prices increase. Our mining cost structure, which we reflect in our cash cost per ounce includes our cost of sales, less costs associated with the energy business, which are minimal. As you can see, it does fluctuate, but approximates $2.75 to $300 per ounce. The average gold price increased approximately 30% year over year, but our cash cost per ounce increased 5%. In a rising gold price environment, we expect to benefit fully as the cost per ounce should not increase significantly. The other cost component for the company besides the cost of sales is our corporate administration costs. Our board and management are very proud of our focus on cost management. We like to stress the strength of our business model and the scalability. The chart on Slide 8 clearly illustrates our focus on being as cost efficient possible in managing this business. Here we have highlighted our quarterly revenues and our quarterly general and administrative expenses since our IPO. Since 2008, our revenues have grown from approximately $25,000,000 to $280,000,000 this quarter. That is more than a tenfold increase. This while our G and A has remained fairly stable over this period. G and A cost have averaged $5,000,000 to $8,000,000 per quarter for the last 12 years. For Q3 2020, G and A was less than 2.5 percent of revenue at 6,300,000 dollars Management believes we can continue to add to our portfolio and grow our business without adding significant overhead to the company. Before I turn it over to Ian, I wanted to provide an update on the CRA audits. With respect to the various audits ongoing, both international and domestic, there are no material changes. The only additional item to note is that the CRA has now added 2016 to the list of years being audited. And now I'll pass it over to Ian, who will provide an update on the recent royalty acquisitions. Thank you, Sandy, and good morning to those on the line. I'm pleased to be able to provide an update on some of our recent royalty purchases this morning. First off, we're very happy to add a 2% NSR on the Rio Baker claims at Solaris Norte. This doubles the area that we cover on the project and extends the royalty along strike. We acquired this royalty for up to $5,000,000 upfront and up to $8,000,000 in contingent payments. We see good upside of this project and it's really one of the few high quality gold projects currently under construction. Moving to the next slide, we're also pleased to announce the acquisition of a portfolio of 24 royalties from Freeport McMoran for 30,600,000 dollars This portfolio provides good gold exposure including royalty on Walbridge's flagship Fenelon project in Quebec. We also acquired cash flowing royalty on the Neal Hot Springs geothermal operation in Oregon and a royalty on Penolos' Milpias mine in Mexico. The portfolio altogether covers over 60,000 hectares largely in North America, providing good broad based geological opportunity in regions that we like. Now moving on in terms of pipeline for new deals, we see the pipeline is quite healthy at the moment. It is also quite diverse both in terms of deal size and commodity. We're seeing a tendency however towards there being slightly more precious metal byproduct deals in the pipeline, we see very good opportunity in other commodities as well over the next several months. With that, I'll hand it over to Paul to discuss some of the exciting organic growth within the portfolio. Thank you, Ian. The first area I'll cover is the upside of the NPIs in our portfolio. While the steady performance of our NSRs and streams is our bread and butter, in a bull market our NPIs shine as did the Hemlo NPI this quarter. There are a number of other NPIs in the portfolio. Goldstrike is the most substantial. We haven't seen as much as we'd like from Goldstrike NPI this year with the Goldstrike material being fed to the mill at a slow rate, but that does leave more material for the future. We have a 5% NPI on Musselwhite hasn't contributed since the fire in early 2019. The mine is now back in operation with a production rate of about 250,000 ounces a year. We estimate the NPI will start paying again in late 2021. 2 other NPIs may come to life. We have a 20% NPI on certain claims at Macassa and the recent exploration success is expanding the ore body towards those claims. And our 5% NPI and the Pandora PGM operations in South Africa may turn profitable if these high PGM prices continue. The next item is our growth outlook. Slide 11 shows the expected near term drivers. Expansions at Stillwater, Tasiast and Macassa, the construction of Solaris Norte and Coralcoaco, are all expected to complement the growth from Cobre Panama over the next 5 years. With increased capital available to the sector, the likelihood of development assets moving to production has picked up. Assets like Ballantyne Lake, Hard Rock and Stibnite Gold are advancing towards construction decisions and currently not included in our 5 year guidance. It's exciting to see the level organic growth across the portfolio. Slide 12 highlights recent portfolio updates. I won't cover them all as I'm sure you're following many of the North American assets like Hardrock, Stib Knight and Island Gold. Less familiar are the Australian assets. Last quarter, I mentioned the expansion from open pit to underground at Duketon in Australia. Another interesting Australian development is Wooluna, also known as Matilda, where we have a 3.6% NSR. Wolloona is currently producing 60,000 ounces per annum from oxide oil, but with a total sulfide resource of close to 6,000,000 ounces, They're currently constructing a sulfide concentrator that allow production of 100,000 to 120,000 ounces per annum by late 2021 and have stage 2 plans to expand production to 250,000 ounces per annum. The pace of drilling in the gold sector has picked up. Last quarter, I highlighted exploration successes at Detour Malartic, Valentine Lake at Hamlo and expect these to contribute to our reserve and resource increases at year end. 2 reserve and resource updates were received through the quarter. The first at Candelaria, Lundin and the annual mid year update once again increased M and I resources in particular reflecting success at the Candelaria Norte underground. The new M and I resource is an 18% year over year increase. Lundin have now more than doubled the mine life from the 14 year expected life at the time they acquired the mine in 2014. The second update was from Equinox at the Mesquite mine in California. M and I resources increased by 94% and the total mineral inventory at the mine is now greater than 2,000,000 ounces. As an aside, we also received news from Equinox of the first gold pour at Castle Mountain, Jordan. The portfolio saw 3 meaningful exploration successes this quarter. Kirkland Lake has been having ongoing success this year, expanding the ore body at Macassa. In October, Kirkland intercepted 254 grams per ton over 14.5 meters, extending the South Mine complex further to the South near the contact with the amalgamated break. We have a variable rate royalty on PREMIER Gold's and Nevada Gold Mine South Latura Mine that we estimate will be 6 percent on the sulfide material. On the prior reserves, we expected South Arturo to contribute for the next 4 years, although they have now discovered material extensions to the El Nino underground that will likely extend mine life when they update reserves and resources at year end. Skeena Resources continues to have its success at Eske Creek, where they're developing a high grade open pit. The 2019 PEA indicated production of 2,600,000 ounces of gold equivalent at an average gold equivalent grade of greater than 4 grams per ton. More recently, they're having success at depth initially with the water tower zone and this quarter discovering a new zone SK Deeps that lies 260 meters below the prime known mineralization. The drilling success bodes well for our longer term organic growth, always the most profitable type of growth. The final topic to cover is our available capital shown on Slide 13. Our cash balance is building rapidly. We have working capital of $559,000,000 and no debt. Including our available credit facilities of $1,100,000,000 we have a total of $1,800,000,000 of available capital to deploy on new growth opportunities. Given where the balance sheet now stands, strong cash flow generation and the stock trading below its highest vertical this year, we're not currently planning to use our ATM facility. With that, I'll hand it to the operator and we welcome any questions. Your first question comes from Fahad Tariq with Credit Suisse. Please go ahead. Hi, good morning. Thanks for taking my questions. On Slide 10, where you talk about the Freeport royalty portfolio, Can you talk a little it's quite a bit of the land the land package is quite large. Can you talk a little bit about how additional discoveries would work in terms of Franco's exposure? And secondly, based on your internal numbers, what was the IRR for this portfolio? Thanks. Good morning. It's Ian Graig here. So this is a portfolio of 24 royalties and the land package is broken out over a number of those. A very large chunk, however, is covered by the Walbridge royalties. So Fenelon, their flagship project, but also Martiniere and Northway Noyon. So that comprises a very large component and the royalty there is 1% to 2%, 1% on Fenelon, believe it's 2% Martiniere and 1% on Northway and Noyon. There's variable rates of royalties across the others that have been acquired. And so it's specified in each, I think, will provide more granular disclosure with the asset handbook. These are relatively early stage royalties in a number of cases. The 2 cash flowing are Hot Springs, which is a renewable energy royalty and Milpias, which is a copper mine in Mexico. So the IRR for this is something we probably won't disclose directly because a lot of it is really in the option value of these assets and is assessed based on what we think the geological prospectivity is, assessing it based on cash flow is a tough thing to do at this stage. Okay. Not a problem. And just one other question on the at the money equity program. I believe you raised $20,000,000 in the quarter, I'm guessing perhaps to fund this deal. Can you just walk us through like philosophically why tap that program when there's quite a bit of cash on the balance sheet? And that's my last question. Thank you. Sure. So when we did implement that program in 2019, we did have debt on the balance sheet and we completed a deal with Range Resources on the Marcellus. So at the time the program was implemented to pay off the debt that we had and which was done earlier this year. Thereafter, the objective was to build a cash balance on our balance sheet, which is, as Paul mentioned, is a decent size right now of just under $500,000,000 So at this stage, as was mentioned, we don't intend to use the ATM at this stage. Thank you. Thank you very much. Your next question comes from Jackie Przybylowski with BMO. Please go ahead. Thanks very much. I want to start with just a modeling question, if you can help me out. I guess, specifically with Cobre Panama, because it's a fairly new mine still. The revenues you reported in the quarter were quite a bit higher than what I was looking for. Anyways, can you give us a bit of a sense or some color in terms of like how you expect those deliveries, let's say, in the 4th quarter to play out? Do you expect that to sort of fall back down below the mines production run rate for the next quarter? Thanks. Sure. So for Cobre Panama, it was roughly 16,000 GEOs for the Q3. 4th quarter, obviously, it depends on where they are making shipments and timing of payment for Franco. But I would expect to see at least the same level of GEOs for that we achieved in the Q3. So I guess that would lead me to my next question, which is, you mentioned in the MD and A that you expect to be sort of at the high end of your previous guidance for the full year. Is there a chance or I guess is there a possibility that you could actually exceed that high end of the guidance by a meaningful amount if production at Cobre Panama is consistent with what we saw this quarter? And I know assuming that Candelaria is back up and running near term obviously as well. Yes. No, that would be great if we were able to exceed our guidance. Obviously, right now, we're looking at the best available information. There's always assets that surprise us in a quarter, for example, the Hemlo NPI. So again, if the Hamlo NPI or some of the other assets deliver more than what's expected, there is the possibility that we do exceed our guidance. Perfect. That would be a good problem to have, I guess. And maybe I'll just ask one final question. Your revenue from gold and precious metals, you disclosed was 92% this quarter and energy only making up a small portion. So I know you get this question every quarter, so I'll take my turn asking it, I guess. Is that opening up the possibility? Or is that making you guys think a little bit harder about adding energy royalties to your portfolio in the near term? More so than what the balance is, Jackie. We look to see where the sector is. There's a lot of capital that's been pulled out of the sector. We are seeing some attractive opportunities, moderate in size. So we are actively really driven by the quality of the assets rather than the current commodity mix. Okay, perfect. Thanks very much, Paul and Sandeep. Thank you very much. Your next question comes from Puneet Singh with Industrial Alliance. Please go ahead. Great, thanks. I guess in terms of the opportunities you're seeing out there on the precious metal side, would you see would you say you're focused more on the lower priced acquisitions that have significant future geological potential? Or are there still these larger opportunities out there being shopped by operators that you've been talking about in the previous quarters? Thanks. Good morning. It's Ian again. I would say both. There are interesting opportunities to look at on the larger end of the spectrum and we continue to evaluate those. But when we see opportunities that are smaller that have the potential to get much bigger, especially in precious metals, we are aggressive in pursuing those as well. Okay. And then just on these smaller ones, do you think like on some of these newer assets, is it easier to acquire a royalty that's already existing on the asset versus creating a new one with some of these junior explorers from your perspective? Generally, I would say it is easier to buy existing royalties. We'd like to create new royalties. We find there is really good opportunities there from time to time. But at the moment, there's probably more deal flow in the existing royalty space, especially around precious metals. Okay, great. Thank you. Thank you very much. Your next question comes from Cosmos Chiu with CIBC. Please go ahead. Hi, thanks, Paul, Sandeep and Yin and congrats on a very good Q3 here. Maybe my first question is on the NPIs. As you mentioned at Hemlo of the $24,000,000 in revenue, dollars 13,000,000 came from previous quarters. Could you remind me how these MPI contracts work? And could we expect another sort of catch up in the future quarters? Or is this pretty much it? Sure. So Cosmos, obviously MPI, hey, how are you doing? Net profit interest, so the way the calculation is you are able to deduct your operating costs as well as capital and whatever profit and on this specific NPI, it's a 50% share that Franco does have. So there's different elements because the NPI doesn't apply to the whole property. From our standpoint, it's difficult to get some visibility on what the number is. We make our best estimate each quarter. It just so happens with the sharp rise in the gold price in 2nd quarter, the NPI was much higher than what we had envisioned. And it was also a component of the spend on development at the time. So could you have catch up payments? Yes. So for example, we've made an accrual we'll make an accrual for 4th quarter as well. And it could be that depending upon where commodity prices are, we've underestimated. We could also possibly overestimate. It's not an exact science, but just so happened that the NPI for the Q2 was much more significant than what we thought it was going to be and hence the catch up in Q3. So this could happen, I'd say Goldstrike as well. Depending on your accrual that you've made at Goldstrike, there could be 1 quarter where there could be a catch up? There could be the thing with Goldstrike is they do provide a fair bit of information. Hamilow is a little different. It just depends on what sort of agreement you do have. So the likelihood of a up like that at Goldstrike is much less versus a Hemlo and versus, for example, a Musselwhite. There we don't have as much visibility. Our agreement with Goldstrike and information sharing is much better with Barrick at Goldstrike. For sure. Maybe switching gears a little bit, good to see that you've made some acquisitions in the quarter with good potential here. At Walbridge, I don't know Walbridge as well. So Ian, could you maybe walk me through the asset? I don't know how much you can tell me, but like Felanand and the timing here, what are they saying in terms of potential production? And how do the other 2 kind of fit into the whole scheme of things, Martin, Nia and also Northway, Noyuk? Hi, Goswell, it's Ian. Hi, Ian. So, Fenlon is where they're very much focused at Walbridge. I point you to their recent presentations. They've got some excellent presentations outlining the project. But maybe I could just quickly highlight, there are a few zones there that we've called out in the presentation and they're looking at both open pit potential and high grade underground. There is already a ramp into the deposits and they have taken a bulk sample. So it's one from a geological perspective we find very interesting and we see there being very good upside, but it is still early. So exactly what it's going to shake out to be in the timeline is tough, but it's in an excellent jurisdiction in terms of building a mine. And I understand that they've already put a bunch of the steps in place so they can permit it relatively rapidly. But the plan right now is for resource, I think in the second half next year. Don't quote me on that, but that's my reflection. Okay. And then the other 2, Martinia and Northway, Noyang, how do they kind fit in? Or are they separate? They're separate. They're geographically distant. There's different royalty rates at Martiniere. The company does seem to be spending some time on Martinere less so on let's call it N2. But they both have historical resources and are in a great jurisdiction. So we're always happy to pick up that kind of an asset for optionality within the portfolio. For sure. And maybe just one last question here. I'm just trying to confirm my mathematics here. You talked about your guidance, 475,000,000 to 505,000,000 for the year. And it looks like you're trending to the top end for sure. But of course, there's that X factor called Candelaria. But Candelaria did about 20,000 GEOs in Q3. So worst case scenario, even if, say, it doesn't come back or there is minimal contribution in Q4, based on simple math, you could still potentially hit your guidance. So Candelaria just really a factor of are you going to hit the bottom end or the higher end? Is that a good understanding here? Yes. So I guess the way we look at it is if Candelaria resumes production in the near term, we think we'll be at the higher end of the guidance. And if not, more towards the middle. Obviously, the other X factor in this is they are the NPIs. And if gold price continues to rise, they could perform better than they have previously. And so that would add additional upside to our performance and as I said, potentially exceed guidance. Great. Thanks a lot. Those are all the questions I have. Thank you. Thanks, Hospice. Thank you very much. Your next question comes from Mike Jalonen with Bank of America. Please go ahead. Thanks and good morning everyone. Just had a question, Paul, Sandeep, Ian on Golden Highway. What's the quarterly revenue contribution of Franco's foregoing at the moment? I know you'll get it eventually, reserves are in the ground forever unless I get mine. And secondly, has Kirkland Lake given you any indication what steps would be required to what has to happen for the mines to reopen? What do they they must see something? Thanks. Mike, it's Paul. I don't have an exact number in terms of the revenue there. It is one of our smaller assets. It's a smaller producer. And don't have much guidance in terms of the moving pieces there, all the timing on Golden Highway. The company has reported they are considering their alternatives with the asset. So whether it is core for them ongoing or not, I am uncertain. I'm sure in due course, it will be up in operation, but don't have a lot of guidance on the timeline or what it will take to get there. Okay. Thank you. Thank you very much. Your next question comes from Brian MacArthur with Raymond James. Please go ahead. Hi, good morning. Sorry, my question goes back to what Cosmos was asking on the Halo NPI. So just so I understand that the $13,000,000 is the true up from the period before. Is that essentially what you're doing is you're accruing and then you actually get the cash payment in the door and the $13,000,000 is that cash is coming in this quarter. What I'm trying to figure out is you're accruing, but when the cash is actually coming in from this NPI because obviously there's ongoing spending that affects what the operator decides to do, when they actually pay that out and how you actually get the cash in on all this? Sure. Hi, Brian. Sandeep here. Yes, you're right. So what happens is each quarter we will accrue what we believe is the MPI amount. And then the operator, Barrick, will make payment to us in the middle of the following quarter. So for example, the accrual that we would have done for Q3, we will receive in November. And it's that's paid in cash and at that time then we will do a true up. And so it just so happened that we made an accrual in 2nd quarter and then we were paid subsequent to 2nd quarter and the amount was significantly higher than what we had accrued. Again, we've made an accrual for 3rd quarter and there is the possibility that the accrual could be too high or too low. We will find out in the next few weeks when we receive the statement and the cash associated with the NPI. But you're never giving cash back, you just No, no. We do not. It just carries. So if we're to and for HMO, NPI has been with us since 2000 when we went public. It just so happens that it was in a deficit position and then it achieved profitability a few years ago. Right. Because you're making estimates about capital and all the rest of it, which is flexible. So you just accrue and if you get it wrong, it's just you get less the next quarter or whatever, there's no cash true up there. There's no cash we have to return, correct. Perfect. Thank you very much. That's what I thought. Okay. Thank you very much. Your next question comes from Greg Barnes with TD Securities. Please go ahead. Thank you. So Sandeep, is there a way to provide some idea of what the NPI run rate would be at a $1900 gold price going forward? And maybe not just the Hemlo, but for the group of NPI that you have. It is something that we will look to do and potentially as part of our guidance that we issue in the 1st quarters with our year end results, something that we could provide. Would you do that by asset or just as a lump sum number across all of the NPIs? Likely a lump sum number. Okay. Any quantum around what that number would be for Q4? Q4, I'd have to take a look. But let me take a look. I don't want to give a number off the top of my head. So candida Hayden, there are no further questions at this time. Please proceed. Thank you, Veronica. We expect to release our year end 2020 results after market close on March 10 with a conference call held the following morning. Thank you for your interest in Franco Nevada. Goodbye. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Thank you.