Earnings Call: Q3 2020

Nov 16, 2020

Earnings release

Thank you for standing by. This is the conference operator. Welcome to the K92 Third Quarter 2020 Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. I would now like to turn the conference over to David Medelek, Vice President, Business Development and Investor Relations. Please go ahead. Thank you, operator, and thanks everyone for attending K92 Mining's Q3 2020 conference call. We hope you and your families are doing well. In addition to myself, we have on the line John Lewins, Chief Executive Officer and Director and Justin Blanchard, Chief Financial Officer. I would also like to remind everyone that after the remarks from management, the call will be followed by a Q and A session. As we will be making forward looking statements during the call, please refer to the cautionary notes and risk disclosure in our MD and A. Also, please bear in mind that all dollar amounts mentioned in the conference call are in United States dollars unless otherwise noted. Now, I'll turn it over to John to provide you with an overview. Okay. Thanks for that, David, and welcome everyone. So the 3rd quarter, once again really represents another step forward for K92. Completing our Stage 2 plant expansion, commissioning to basically double our throughput from 550 tonnes per day or 200,000 tonnes per annum to 1100 tonnes per day or 400,000 tonnes per annum. In addition to significant progress on exploration and a number of our other project areas. So for start, 1st of all, with safety, Q3, no lost time injuries and we've only had one lost time injury since start of operations in 2017. So we continue to operate with one of the best safety records in the Australasia region and we continue to have a very, very strong focus on that area of occupational health and safety. On the production front, we delivered 22,261 ounces of gold equivalent and combine that with a record mill throughput of 64,702 tons processed. If we compare that to Q3 2019, gold equivalent production was up approximately 16%, while throughput over doubled, an increase of 102%. Also important to note that for part of the quarter, our head grades were actually kept deliberately lower to mitigate any gold losses during the commissioning of that expansion. Overall, plant commissioning has performed well. We've seen positive in terms of the ultimate plant throughput, where we have actually been able to achieve over 1200 tonnes per day on a number of consecutive days, which is obviously notably higher than the design throughput in the tons per day. On the mining front, long haul stopping continues to perform to design on both K1 and K2 veins. And this year, a major focus has been on expanding a number of operating levels that we have from the mine to expand throughput. I'm pleased to say having just returned from site, in fact, that we've now got 7 operating levels, 8 level being opened up. The incline continuing to go up towards the 1285 level and the decline going down to the 11:30 level. We've also started production from our largest stope to date, which will provide the base production for the balance of the year. So as a result of the completion of Stage 2 plant commissioning and the multiple production fronts opened up underground, we're really looking for this Q4 to be the strongest of the year and therefore of mine to date. I'd now like to turn over the call to our Chief Financial Officer, Justin Blanche to discuss our financial results for the Q3. Justin, over to you. Thank you, John, and hello, everyone. Our Q3 2020 revenue increased by 70% to $35,600,000 compared to $21,000,000 Q3 2019. The increase in revenue was attributable to an increase in the realized selling gold price of 18.15 dollars per ounce as compared to $14.09 per ounce in the prior year as well as increased production. As of September 30, 2020, there are 5,859 ounces of gold in concentrate inventory. Inventories increased by 2,420 ounces of gold during the quarter as we had a strong finish to quarter after commissioning was completed in September. These ounces were subsequently sold in October. Cost of sales was $15,900,000 for the quarter, an increase of 30% compared to the Q3 2019. This was primarily due to increased operational activity, including the commissioning of the Stage 2 plant expansion. In addition, the company incurred costs related to the COVID-nineteen pandemic, including additional pay for employees completing longer rosters at site, additional costs related to the movement of personnel and supplies, and safety and medical related costs. Cash flow from operating activities for Q3 2020 was $12,800,000 compared to negative $2,600,000 in Q3 2019. As of September 30, we had a $41,200,000 cash balance, our highest balance on record, which includes making corporate tax installment payments in Papua New Guinea of a little over $5,000,000 paying 6 $400,000 year to date in principal loan payments to Trafigura, having a remaining balance of $7,000,000 as of September 30, and spending $15,300,000 year to date in expansion capital. As John mentioned, in Q3 2020, the and 27 ounces of silver. During the same period, we sold 19,265 ounces of gold, £487,087 of copper and 7,166 ounces of silver. We incurred cash costs of $6.95 per ounce and an all in sustaining cost of $8.34 per ounce, which was significantly below our realized gold selling price of $18.15 per ounce for the quarter. In comparison, 18,636 ounces of gold, £209,287 of copper and 5,284 ounces of silver were produced and 15,562 ounces of gold, £181,422 of copper and 4,847 ounces of silver were sold in Q3 2019. A cash cost of 6.49 and an all in sustaining cost of $800 per ounce were also well below the Q3 2019 realized selling price of $14.09 per gold ounce. Our 2020 cash cost per ounce increased relative to prior year due to deliberately lower feed grades to minimize potential gold losses during the commissioning of the Stage 2 plant expansion as well as additional costs incurred related to COVID-nineteen pandemic and higher labor costs associated with the plant expansion. We see downward pressure on the cost via economies of scales following the successful commissioning of the Stage 2 mill expansion and continued expansion of long hole stoping activities. I will now turn the call back to John to continue with the rest of the presentation. Okay. Thanks for that, Justin. If we move on and look at on the exploration front, we are I think quite obviously very pleased with the progress to date. Recent results reported from 3 separate near mine infrastructure vein systems, Cora, Judd, Kurente. If we look at Cora, late August, we announced results consisting of both the infill drilling and step out drilling to the site. First hole reported from the southernmost drill cutty, which we only opened up in Q2, demonstrated the system basically continues alongside, which I have to say was pretty much what we expected and recorded 9 meters at 10.2 grams per tonne gold equivalent. Other results that we reported at that point in time included 4.3 meters at 113.8 gram per tonnegoldequivalent And our exploration development drive to the site has now extended beyond the mining lease and we're putting in a drill cutty, which will actually be in our exploration area. So we will be drilling Kola site and in fact we already have I think a hole in Kola site which is outside of our mining lease. On Judd, the announcement was made in early September and then again in mid November. They were the first ever done by K92. Chad Vein system really has had very limited historical exploration. It's got a strike length of over 2.5 kilometers up to 4 known veins and it's sub parallel to Cora and approximately 200 meters to the southeast Southwest, sorry. And generally only 50 to 100 meters from our main infrastructure underground. In early September, ventilation infrastructure drive was developed along the JUD J1 vein as we call it And that was done to provide a more detailed evaluation in terms of both grade continuity and the geotechnical conditions of that vein. Aluminum results estimated that we had taken 6,200 tonnes at 5.5 gram per tonne gold equivalent, average thickness 3.4 meters. Now that we're now putting it as a bulk sample and putting it through the plant. In fact, we have already completed that work and we'll be reporting it in the near future. And I think it'd be fair to say I think we're happy with what we've seen come out of that. Geotechnically, the vein was shown to be very calm. So overall, very happy with it. Importantly, I think mineralization encountered from a box sample very similar to Kora And that really with the continuity in the grains and the grades that we saw, really drove us towards putting 2 of our rigs to actually commence a systematic an initial systematic exploration program from underground. Mid November, we announced the first four holes from that Phase 1 program, as we call it, 3 of the holes intersecting hydrate mineralization. Highlight was JDD-six, 7.25 meters at 258 gram per tonne gold equivalent and whole JDD-three V333, 4.5 meters, 22.4 gram per tonne gold equivalent. Mineralization intersected is similar to that, which we've seen in the bulk sample and also Kora. It's obviously still very much early days, but the results are certainly very exciting. And we've got additional work planned for Judd. And so we will be enhancing our knowledge of Judd's continuity, size, great potential, etcetera, etcetera through exploration in the coming quarter and in the New Year. Curemp, late October we announced our maiden drill results from the vein system reporting 6 holes. Like Judd, Curempi runs parallel to Cora and the vein system has been mapped for strike length of about 2 kilometers and has very little exploration on it. Now that vein is actually to the north, the northwest and about 400 meters away. Results recorded in multiple intersections, subparallel veins, highlight being what we've quoted as a Ka-one vein, which in one hole came up with 2.45 meters at a bit over 40 gram per tonne gold equivalent. And then approximately 100 meters banded from that 3.2 meters at 18.3 gram per tonne in one of the other holes gold equivalent. Again, mineralization and counter very similar to Kora. So results from both Curente and Judd, I can only term as exciting. I highlight the significant near mine exploration upside potential of Kinan-two. We've basically evaluated something like 20% of the vein field strikes so far with the work we've done. So we've got an enormous amount of upside potential, which is still to be drilled with all veins remaining open at that and open to the site. Over the coming months, we plan to assess the impact of our exploration results carefully. In terms of the throughput potential, we're looking for Stage 3 expansion and the potential for a Stage 4, maybe a Stage 5. And so as a result, we continue to increase the number of drill rigs we've got on-site. We're currently running 4 rigs underground, a 5th rig is due this week and so should be drilling by the end of the month. And we've actually got a 6th rig to arrive the Q1 of next year for underground. So that takes us to currently 5 rigs on the surface, 4 rigs underground, 5 rigs by the end of the month, 6 rigs, a total of 11 rigs on the Q1. And I can assure you our exploration people believe that they could actually use a few more. So we're having a look at that in our budget for 2021. And of course, I'd remind everyone that our exploration production growth is all self funded and we continue to bolster our balance sheet. So with that, operator, I'd be happy to commence the Q and A session. Thank Our first question comes from Varun Arora of Clarus Securities. Please go ahead. Hi, John. Congratulations to you and the team on continued execution, particularly on the cost front despite the lower grades during the quarter. I have a couple of questions. I guess I'll start with the gold sales. I noticed they were a bit lower as compared to the previous quarters. Could you talk about what happened during this quarter regarding the gold sales? Okay. So I mean basically, as was mentioned by Justin and myself in my talk, we were commissioning during the Q3 commissioning the plant. So what that meant was we deliberately put lower grades through the plant first half with a portion of the quarter to make sure that in commissioning where you always get a few issues, we didn't want to be putting high grade through the plant while we're commissioning expansion and useful. So we had higher grades towards the tail end of the period and we had a lot of high grade right towards that end. That high grade production, especially in the latter half of September, would then basically not be sold until October. And I think Justin made comment on that, I think the amount of gold unsold at the end of the quarter, previous quarter. So that's just something that will pick up in the next quarter. All right. Thank you. On the cost front, I believe you're seeing some unit cost savings as a result of commissioning. Could you comment a bit on that? And what would be your guidance going ahead? Do you expect more cost savings on the unit cost front? Yes. Look, we certainly anticipate seeing continuing savings or reductions in our unit cost as we complete the ramp up from underground. We basically commissioned the plant and as I flagged the plant in fact is shown that it can in fact potentially do more than 1100 tonnes per day. Underground, we've said it would really take us until the end of this quarter to get the production ramped up to the 1100 tons a day. So we still got a little way to go in terms of the underground, but it's fast approaching that 1100 tons a day. And certainly, we would anticipate that that will continue to drive down the unit costs. As you'd be aware, your probably your single biggest cost is labor and expat labor actually forms a fairly major cost center, doubling throughput basically adds less than 10% to your expat labor and probably about 30% to your other labor. So it's not a doubling of the labor anywhere near it. Same thing with power, which is one of your other major costs, doubling throughput doesn't double near the power cost. And then of course underground, long haul stoping is ramping up. It's still not at what we would call the stable point because we're still opening up vertically underground. So we as we move to more and more production coming out of long haul stopes and ultimately, I think we're looking at about 60% long haul stope and that again will drive down the cost. Right. And what's the current breakdown between long haul versus current fill? It does vary, but I would say that from probably around 70% plus is now long haul. 70% long haul. Okay, great. Thank you. As a host of cotton field, obviously, you get some production from developing along your main vein systems, not being up with stalks. Right. And just last question, what would be your guidance for the grade in Q4? Grade in Q4, I would anticipate that I think will be around the 12 grams to 15 grams per ton. Okay, great. Thanks, John. Thanks for taking my questions. That's all from my side. Our next question comes from Geordie Mark of Haywood Securities. Please go ahead. Yes. Good morning and good evening, John. Thanks for raising the call today. Yes, just an extension from the earlier question today. On mining, you're saying ultimately, obviously, you're doing pretty well to get up to your 1100 ton per day rate. What do you think prevailing sort of capacity is there? And I guess that's an interplay between mine design and stopes that you've got going forward? And ultimately, when you're looking at lump hole open stoping at the moment, can you give us an idea of the dilution factor that you're incorporating there and anything that we can garner from how you're executing at the moment on that? Okay. Well, the capacity of Stage 2 at 1100 tons a day or 400,000 tons per annum was actually based on the plant. And that was the existing mill, which is a 900 kilowatt mill, all the work that we did and our consultants and the actual Otakumpu who supplied the mill, All the work said the mill itself could do 1100 tonnes a day. That's the existing mill. And what we needed to do was increase crusher capacity by putting in a bigger cone crusher, increase flotation capacity, pumps, pipes and some other upgrades such as the process control system, etcetera, etcetera. And so to go beyond that 400,000 tons would involve a new mill and obviously the costs would go up dramatically if that's what you wanted to do and of course impact on production etcetera, etcetera. So that was the driver that really said, so we're looking at 400,000 tonnes around 1100 tonnes a day. From the perspective of underground, certainly you could do significantly more than that. And obviously, the Stage 3 has shown that with the resources it currently stands, the PEA there said you can do 1,000,000 tonnes per annum. So with continuing to open up and importantly a twin incline, you can get to 1,000,000 probably significantly more than 1,000,000 tonnes per annum. So underground with the existing incline, I would certainly say we would be comfortable saying we could get to 500,000 tons per annum. We are moving currently a lot of waste as well. So we are actually moving more waste than mineralized material. Haven't got a study, so we don't have any ore. We just have this mineralized material that makes us lots of money. So we can certainly move material. We couldn't move 1,000,000 tonnes, not with the existing in plant. And as you'd be aware, one of the things that we have done is committed to that twin incline. And in fact, the twin incline now, I think the 6x6 would be pushing about 100 meters in and the 5x5 probably around 70 meters in. So they're progressing fairly well. The important thing in the expansion or expanding underground production is opening up levels. And so I was underground last week on-site, longest trip I've had underground because there's just so much more to see. So you've got 11, I'm going to be down 11.50, 11.70, dollars 11.85, dollars 12.05, dollars 12.25 and then incline going up to 1265 and the decline going down to 1130. So and up to 600 meters of strike length, a long strike as well. So we've got multiple levels open and we've also got Judd, which is sitting at 12:35, which is, as we mentioned, that ventilation development, but it is actually producing ore. So ramping up that production is about opening up those levels and then still production from it. So realistically, I think until you get the twin incline and you could probably push the 500,000 tonnes whether or not the plant can do that on a sustained basis that would be something that we still really to look at. And this is still early days of having done that expansion. You're still in that optimizing phase and then you start moving into your debottlenecking and seeing what you can actually get out of what you've done. Did that answer all your questions, Johnny? Or is there something else I can hear you? Yes. Speaking on that sort of the dilution factor that you're Oh, dilution, yes. Look, I'd say that generally long haul stoping, we probably picked up less dilution than we anticipated. So we certainly get less dilution from our stopes and we do actually from our development. So I think we're running at 15%, 20% dilution. Okay, great. Thanks. I've got more, but I'll pop in the queue. Thanks. Okay. Thanks for that, Tony. Our next question comes from Chris Thompson of PI Financial. Please go ahead. Hi there. Congratulations on a good quarter. I mean, I understand obviously you've been engaged in a lot of areas, a lot of things. Just a quick question on the just back to the unit costs. Could you quantify exactly what you anticipate the unit cost to be on a per ton mill basis, obviously, when you reach your desired throughput rate? I can't give you the detail right now off the top of my head. We are we have from the study and from our current budget that we're doing for next year. Overall, the overall average cost is around $150,000,000 It hasn't really changed that much, But we haven't finished our budgeting process for next year. And when I finished the budgeting process, I mean, that's something that will then allow us to give our guidance for actual production for next year. It's been delayed somewhat because of COVID and all the rest of it, which has handicapped us a little bit. I've actually just returned from PNG, from site and from Moresby, where we actually went through our budget. So we're just finalizing them, hopefully, as we speak. But it would be in that order, Chris. Okay. Thanks a lot, John. That's great. Just one more quick question. Obviously, You said you lowered the grade for obvious reasons. You got a sense of what sort of grade you'd be looking at to provide the optimum sort of recoveries you'd be looking for on a forward going basis? Well, if you look at certainly the studies that we've done all indicate that you're looking around sort of 10 grams to 12 grams per tonne up to 14, 15 in certain times. And that is the sort of grade that we'll be looking for next year. I think this year, it's pretty much the grades that we were looking for. We've run a little bit higher than that, in part because the long haul stopes have come out cleaner than we anticipated. And of course, the other one is that positive reconciliation that we've historically had has continued all of this year. So we've also got that positive reconciliation. But simplistically, if you look at it, 400,000 tons at 94% recovery or thereabouts. If you're running 10 grams per tonne at 400,000 or 10.5, then you're running 400,000 ounces, you're running about 100 and sorry, 400,000 you're running about 135,000 ounces. So 10,000 to 12,000 basically gets you 120,000 to 140,000 ounces, 150,000 ounces and that is the sort of figure at 400,000 tons per annum that we projected we'd be able to produce. So over the medium term, that's the sort of grade you expect to be producing. Great. Thank you for that, John. And yes, congratulations again. Well, thanks, Chris. It's sometimes things are fun. Our next question comes from Andrew Mikitchook of BMO Capital Markets. Please go ahead. Hi, John. Congratulations on a strong quarter. Lots of keen questions have already been asked. Maybe I can just take us away from this quarter to looking forward. What kind of flexibility do you guys have to adapt the mine plan to the types to take advantage of anything you guys see at Judd and Karampe. It's not far from underground workings and obviously to some degree greatest gain. So are you able to fairly quickly pivot? Could we see an impact if you saw some sort of high grade shoots as early as next year? Okay. Look, Karimpe is a long way off, 400 meters away and it's only got a few holes in it. So it's reasonably far away from infrastructure. So setting up something there would be a relatively longer term. JUD, obviously, we're mining through JUD right now. And I make the point that we've known that JUD has grade. We've always known it's had grade. It has some historical drilling in it. Our focus has been on Cora because we knew it had grade and had continuity and it had a resource in it, whereas Judd did not. And so almost all of our work has been focused on Cora and developing that resource so that we could go into Stage 2 and then Stage 3. Guys on-site quite frequently are pushing to do more drilling on chud. But from our perspective, we've been driven by wanting to get into Phase 2 and then going to get into Phase 3. And you're developing, you're opening up. And so the degree of flexibility we've had in some ways has been limited because we're moving at a pretty rapid pace. So as a result, we haven't drilled Cora and the guys actually on-site came up with the idea that look, okay, so we get that we've got to focus these drills on CORA because we've got a feasibility study to finish, we need to increase the measurement integrated and we're actually expanding the answers as well. We need to put a return airway development in. What about if we put it along, judge, because we've actually gone through and we know it's sitting here and we were just going to go out a little bit to the east of it. So how about if we develop along it, it will give us a lot of information on great continuity and it will give us geo tech. And so that's what we did. And that's actually forced us to do some drilling in JET because we got such good results out of it. And certainly, because you're right there, you have an ability to very quickly open up JUD if you wanted to. And if there were higher grades there that higher grade shoots, but certainly that's something you should be doing. I think the important thing to remember is it's still relatively early days in Jardin. If you think about it, Cora, we drilled the first hole May 2017. We took the first bulk sample out in September, October 2017. And we've basically taken 2.5 years, say, to get the resource or add to the existing core resource, which was a 1,600,000 ounces to add 3,200,000 ounces. So if you're looking for an impact in your from the chart and you want to add some people suggest, 3,000,000 ounces, That'll take us quite some time to drill that if the continuity is there and we don't know because we haven't gone up drilling. So I'm not sure that the judge is going to have an enormous impact on Stage 3. But Stage 3 is we're going to start effectively we started it because you started between incline. But in terms committing to a plant or whatever else, that's probably 12 months away or thereabouts. And by that time, we may have a bit more information and I suspect we're going to have to rely for even more information coming out. Long way to answer, short of it is, we're going to continue drilling JAD. It will start generating information. If there are areas there that could offer us a good return, then we could relatively quickly open those up certainly over the next 12 months and be able to bring those to account. And in fact, as I mentioned earlier, we will be bringing out the results on the bulk sample that we put through the JAD, but we have also been blending JAD into our core material and quite frankly, no real difference between the 2 materials. Okay. Well, thank you very much. Your question, Andrew? No, that's perfect. Thank you very much for taking us through that. And I'll step back and see if other people have questions. Thanks, Andrew. Our next question is a follow-up from Geordie Mark of Haywood Securities. Please go ahead. Thanks. I'll make you quick and this is an extension I guess to Andrew's question on Judd obviously very successful so far. In terms of in reference to, I guess, Stage 3 expansion or Stage 3 plus given the amount of drilling, I guess, you would need to complete, as you indicated on Judd, to a substantial level, given the ramp up in drilling and geotechnical requirements. I guess, would you be looking to integrate that into a subsequent BEA on an expansion or to 1.4 or would 1.4 potentially include Kora only just to give an idea of what the potential sort of Stage 4 could look like? Okay. Well, first of all, Stage 3, the PEA said 1,000,000 tons per annum, but we also flagged as part of that that in the PEA we had run a cut off rate on the mining side of around 5 gram, so 5 gram per ton. And that had actually meant that we had about 4,000,000 tonnes at 4 gram per tonne that was actually not being brought to account much of it would be sterilized if you actually mine in that manner. And the reason that we use that cutoff was that optimized your NPV5 after tax. And so it was about optimizing NPV5. If you want to optimize production ounces, then you would run at the economic cutoff grade, which is actually below 3 grams per tonne. So what we said was in the feasibility study, we will actually be looking to bring those extra tons and ounces to account. And simplistically, if you look at it, 1,000,000 tons per annum was averaging I think 318,000 ounces gold equivalent per year, but there was another 4,000,000 tonnes at 4 grams per tonne that was not treated. We just happened to have a plant of 400,000 tonnes per annum capacity, which just nicely fits in with a 10 year life of treating the additional material, which could add another 40,000, 50,000 ounces to your production, 400,000 tons per annum, 4 grams per ton, 95% recovery there. But so there's an immediate potential from CORA alone that in fact you could run at 1,400,000 or 1,500,000 tons per ounce and that is something that we're definitely looking at in the feasibility. Whether you then say, well, actually, maybe the plant the new plant should rather be 1,500,000 tonnes per annum and leave that plant for other potentials such as Curente, such as Judd, Maniapi, Atacampa, that's part of what we look at in the study. So we're not wedded to 1,000,000 tonnes per annum for Stage 3. In fact, I'm almost to review that it almost definitely will not be 1 1,000,000 tonnes per annum. It will be 1.4, 1.5, which may be entirely a new plant or maybe a combination of the new plant and the existing plant. And we will continue over the next 12 months with our additional rigs to be drilling Corozal, so continuing to push to the site, we are continuing to take that development further and further to the site into our exploration ground, looking at some deeper holes from underground as well and also drilling Judd from underground and also from surface, both Judd and Kora, continuing to drill Kurenpe as well. So all that's going to be happening over the next 12 months. Plus, of course, we're drilling at Blue Lake by now as well. And if I let my exploration boys get every rig that they want, we'll also be drilling at Maniapia and Atacompton, there's a couple of other things market they'd like to be drilling as well. Exploration guys, it's flight pay. It's what defines them. How many drill rigs have you got versus how many drill rigs have I got? And there's no 2 ways about it that can justify having more rigs. Okay. That's good to know on that. So the cut offs for the feasibility is still kind of mid-twenty 21 based on that potential expansion? Look, feasibility, certainly because of where we are looking at now with Judd and various other things, it will be second half of twenty twenty one. We've already taken the rigs off of drilling core to drill Judd or 2 of the rigs anyway off to drill this single jut. And I anticipate that we'll continue drilling gut because although to get 3,000,000 ounces is a relatively long procedure. There is an area that you can focus on it very quickly. You could certainly bring a 12 month period and moving on to just bust to account if they're there, of course, not there, you and that otherwise driven you do your annual final. So one thing we haven't been able to figure out yet how to make exploration drilling actually generate ounces. It's only really good for finding them. This concludes the question and answer session. I would like to turn the conference back over to Mr. Lewins for any closing remarks. Well, thank you for that. Look, for us, this has been a challenging period. I mean, this is COVID-nineteen. We currently operate with quarantine for all of our people coming to site. I was on-site, did a recon quarantine before I could go out into the workforce. I'm back in Perth now and I'm sitting in a hotel in Perth and I'm quarantining here for 2 weeks. All my wife can do is drop me off some supplies and whatever else. So this is a challenging time. It's a challenging time for many people. I'm actually in awe of our team on-site and what they've achieved. I went to site and it's the longest I've ever not been to site, not been to P and G, almost 6 months. And the change was stunning. From going to the camp, we took the place over, it was 400, it's not a 1,000 man camp going up to the warehouse. The warehouse is now being tripled in size. We've now got a concrete cement patch plant that can do 5 cubic meters in 5 minutes, so that we're short creating underground with that plant to be big enough to actually do 1,000,000 ton per annum expansion as well. And obviously seeing new process plant operating. So these guys and all of that has been done without anyone coming in from outside from overseas to assist with that. It's all been put together by our own people or in the case of camp by local suppliers and contractors. And then of course you get up to the portal twin inclined steel sets now in 6x6 to 5x5 looking at it going in all the walls and the backs shot created looks absolutely beautiful. Guys are doing an incredible job there, broaden the additional equipment to be able to do it. We've set up remote control of the LHDs of the 517i, all of that as well. All of that done in the last 6 months, all of that done in the middle of COVID. So it's really been an exciting period and there's an exciting period coming forward. David loves to use transformative and the problem with the word is that we keep having transformative periods and we have to keep using the word. We haven't come up with a better word because every quarter is transformative for us. I like to think that we've delivered on so many areas. We are really excited by JUD and Kurenpa. We've got more results coming out for Cora in the next couple of weeks and there's some usual story with core, there's always some good results that come out from there. We're back at Blue Lake as well again. And so, exciting there. And Blue Lake now being drilled with our own surface rigs. So we've now got 2 of our own surface rigs, as well as 3 of our underground rigs, 4th of our own underground rig coming in this week, 5th of our own underground rigs coming in Q1. So very much driven by our people And that is that's our greatest strength is the team of people that we've been able to put together. And at the same time as all that's happening, coming up with a safety record, which is in PNG is second to none. So we're looking forward to this quarter, we're looking forward to next year and all the potential that that has. And really appreciate the interest and the opportunity to share that with you. I think I've done enough pontificating. So thank you all for your time today, this evening, this morning, wherever you are. Thank you.