Earnings Call: Q2 2020

Aug 6, 2020

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Volumes Q2 2020 Results Conference Call. After the presentation, we will conduct a question and answer session. Please note that this call is being recorded today, August 6, 2020, at 10 am Eastern Time. Today on the call, we have Mr. Sean Wilson, Chair of the Board of Directors and Chief Executive Officer of the Cisco's Gold of Royalties Mr. Sandeep Singh, President of the Cisco's Gold of Royalties and Mr. Karl de Huyall, Chief Financial Officer and Vice President, Finance. I'd now like to turn the meeting over to our host for today's call, Mr. Sean Wilson. Revlon SANTE, a 2 node partner, new Camasisco, honestly, the different and leader point of view, that's based on AEC down the sector on Avance, Tucano Projet, not partner. Vecuto Tecants, he exists down the situation on the Santee. And I'll switch to English now. And just to recap what I had said, we really are trying to make sure that we are the best partners out there for COVID-nineteen for both of our operators, our employees and our investors. We've taken a lot of steps and tried to be a leader in terms of how things should be done and can be done during this pandemic. We've taken a very strong position in terms of supporting all of our operators and to do the best we can to take care of all of our associated partners, employees and families that are associated with us and those in the greater good of our society as we go through this pandemic. I'll start off with a basic recap of the business. I don't want to lose sight of where we are in this pandemic, but we did produce 12,386 GEOs in the quarter. We had $28,700,000 of revenues and royalties from our products that we're invested in. Cash flow from operating activities was at 15 $400,000 Net earnings at $13,000,000 was about $0.08 per share. Adjusted earnings of 5,700,000 dollars after several payments, including dividends. We withdrew production guidance due to COVID-nineteen in Q1 and Q2 sorry, in Q2. We are back now guiding to about 63,000 to 65,000 ounces a year and for the first half of the year, somewhere between 30 second half of the year, sorry, from 33,000 to 35,000 ounces as the mines come back online. We also did a financing in the 2nd quarter of $85,000,000 with Envestment in Quebec and we really thank the government of Quebec and Investmont Quebec for having partnered up with us during a hard time. It was more sort of a vote of confidence, I think, from our partners that invest monthly back to really to come in and bolster our balance sheet in a time when things were unclear. And obviously, we have a lot of commitments in Quebec and partnerships with Investmont Quebec. So this makes great sense for us. We continue to have our partners invest in us and with us as we move forward. $2.75 an ounce in transfer cost down to 0. So $2.75 an ounce in transfer cost down to 0. So we basically had a royalty status on that silver stream, which I think is an exceptional asset to achieve during this market where we see a lot of competition for royalties and streams. So it's often Austin to the team for getting the deal done and obviously a big load of comments on our partners at your broker and Paseko in terms of their confidence to choose us as a partner on that deal as we go forward. Also, we saw the commercial production declaration from Victoria Gold. Obviously, a huge milestone for us. We have a 5% top line royalty on that project. I'd like to congratulate John McConnell and the whole team at Victoria for just exceptional mine build. Just getting that project going during a time when we faced a cold couple of cold winters. And we saw the thing through. And John and his team are building Canada's next best gold mine, and it was the largest gold mine ever built in Yukon. And heading for 200,000 ounces a year plus of production and just an exceptional outcome on that project with our partners from Orion Mine Finance and ourselves having led the charge to get project financed back in 2018 'nineteen when everybody else was hiding under the bed. We were able to get that project financed. And John's management team was a huge kudos and hats off for the work that they did there to make that project work the way it is working now. And obviously, hitting a premium gold market, it couldn't have been smarter and it couldn't have been better. So that's the way we see it. In terms of our COVID-nineteen results, I mean, obviously, Osisko really hasn't had a big impact on us in terms of what it's been for other industries. And we quite humble about taking advantage of the situation. But the price of gold has gone through the roof, and our partners continue to operate at a very good pace and we see a lot of things positive happening in the gold space in terms of the projects that we're involved in as we go forward. We declared a $0.05 dividend in 2,000 as of July 15, 2020. So that continues to be a leading dividend in the Gulf space. Subsequent to the Q2 results, we are looking for 33,000 to 35,000 ounces of GEOs in the Q2. Obviously, at this gold price, anything that's not pure gold is taking a back seat in terms of GEOs on an equivalent basis. So we're definitely seeing revenues increase based on the pure gold assets in a proportionate basis to other basis other assets. I'll move on right now to Page 12, and then I'm going to hand it over to Fred to take that through if we could, please. Michel, Good morning, everyone. As previously noted by Sean, our deliveries of precious metals were affected by the COVID impact in G2. Several of our operating companies started to have announced temporary operational restrictions due to the COVID-nineteen pandemic, including reduced activities and operations, placement care methods. As of today, most operators have restarted their activities and have reached or are expected to reach a pre COVID level of commissions in the near term. The strong hold price the reduction in HCL's furniture in the 2nd quarter, which should lead us to a great second half that evolved in terms of cash margin and cash flows. If we go to Page 5 of the presentation, revenues from royalty and upstream amounted to CAD 28,700,000 compared to CHF 33,800,000 in Q2 2019. Cash flows from operating activities were CHF 50,400,000 compared to CNY 21,544,000 last year. Excluding the impact of the changes in non cash working capital items, operating cash flows were CNY 18,600,000 compared to CNY 23,500,000. Percent. On Page 6, we show a breakdown of our cash margin for Q2 and year to date. The cash margin on our royalties decreased by $3,000,000 to $20,700,000 in Q2. For the first half of the year, the cash margin of royalties reached $46,400,000 less than $1,000,000 lower than in 2019 despite the due back on our deliveries due to being a strong oil prices, which offset the lower inventory. The cash margin on our streams was $6,400,000 in Q2 similar to 2019 and DKK15.4 million for the first half of the year, which was DKK3.2 million higher than last year, resulting in a cash margin on our royalties and streams of 95% in Q2 of this year compared to 90% in Q2 of last year. Our total cash margin reached RMB 27,800,000 in Q2, including RMB0.6 million from our outtake agreements, RMB 3,700,000 lower than in 2019. Year to date, our total cash margin was $63,100,000 an increase of $1,000,000 On Page 7, we present a summary of our earnings and adjusted earnings. Net income was BRL 14,000,000 in Q2, dollars 0.08 per share compared to a net loss of RMB6.5 million in Q2 2019 or RMB0.05 per share. Adjusted earnings were RMB5.7 million or BRL0.03 per share compared to BRL 8,200,000 or BRL0.05 per share last year. Can you go on Page 8 of the presentation where we have a summary of our results for Q2 year to date? Geos and gold production were lower this year, partly due to the sale of the Brucejack off-site in 2019 and, of course, the impact of COVID. The decrease in our total revenues from DKK132 1,000,000 to DKK41 1,000,000 was also due to the sale of the Prusa update as well as lower deliveries as a result of the COVID pandemic. But this was partially offset by the higher realized price on our goal. Our average gold price per ounce amounted to CNY2363 in Q2 of this year compared to CAD1366 in Q2 last year. Gross profit for Q2 Q2 was gradually flat at $19,100,000 compared to $19,700,000 in 20 19. On Page 9, you find a summary of our financial position. Our cash balance at the end of Q2 was over $200,000,000 Our debt amounted to BRL422,000,000 which includes in the drawdown of BRL50,000,000 in March on the revolving credit facility as a cautionary measure. Our net debt amounted to DKK220 1,000,000. Euros If we include the 1000000 dollars accordion available under our credit facility, the total facility fee available is over €400,000,000 at the end of June, which places Atysco in a very good position to deploy capital. In addition, our equity investment portfolio is currently down at over $300,000,000 for a total firepower of over $900,000,000 On Page 10, you may find our updated guidance for the second half of the year. As you know, after withdrawing our guidance for the year in March due to the uncertainty related to the pandemic, we have now issued a new guidance. We expect GLs of between $33,000 to $35,000 in the second half of the year with a cash margin on our royalties and streams of $0.95 or an annual basis guidance of 63,500 ounces to 65,500 ounces. It's good to note that Q3 will be slightly impacted again by the reduced mining activities in Q2 as some of our royalties are delivered in the delay of 1 to 3 months. We expect the situation to be fully back to normal in Q4 to benefit from this exceptional gold price environment. Back to you, Luciano. Thank you very much, Fred. And I just wanted to give a snapshot of your company, the shareholders on this company. And things are going exceptionally well, I think, in terms of where we are. From an asset standpoint, obviously, from a share performance standpoint, we have some ground to make up, but the fundamentals of the company remain exceptionally solid in a space that's very difficult. In the next slide, we'll show you the quality of our portfolio, over 135 royalties and streams, especially on lost take. Diversified cash flow from 16 producing assets, 91%, growing to 95% cash flow operating margins in terms of most of our assets are in royalties, so we don't have margin compression the way that others do. And that sort of, I think, distinguishes the portfolio from a lot of other things. It is a dominantly royalty portfolio as opposed to a streaming portfolio. Page 12, quality of investments. I mean, we've done a lot in terms of making sure that we had quality. And our dividend sits at 1.5%, which is the best in the space. As you can see here, Wheaton and Royal and Franco are all 1% or less, whereas we're at 1.5%. So we do offer kind of a wait and see attitude. And I think obviously at an increased gold price, we have a leverage to a significant amount of growth assets in our portfolio. As we always said, we were a strong growth company with our accelerator model. So we're well leveraged to take advantage of this gold price as we move further into it. Significant undervalued amount there in terms of rerate. It's surprising to me that we haven't seen the rerate yet, but for those who come in now, I think that the rerate is fairly imminent as this gold price persists and then we see what the actual upside of Osisko can be there. In terms of our trading, we've been highly liquid stock at over $18,500,000 a day. The balance sheet, over $202,000,000 of cash on the balance sheet, over $900,000,000 of finance capacity if you include our available debt capacity and our equity book. We sit with 1 of the biggest dry powder fire the ability to fire capabilities of all the royalty companies in the world right now. It's over 900,000,000 Canadian in available firepower to get going on a new transaction. We do think that there are some transactions that will happen at this price level. However, we've obviously built our portfolio in the past. So even if nothing were to happen, we see quite a bit of opportunity for us. And if you look forward to Page 13, you see that we go for about 140,000 ounces of GEO. It's just on our organic growth of things that our shareholders have already financed and paid for. So we have the organic growth. We don't have to reach. We don't have to stretch. And we don't have to pay premiums that we've seen people paying in the space. They're quite high in terms of achieving assets. All we really have to do is just sit back and harvest right now. Page 14, I think, is more of the most exciting slide of this entire presentation today in terms of things that we knew about when we sold today, Lars, back in 2014 that are now being documented and drilled to resource and reserve level by our partners at Enrico and Yamada. Congratulations to them on a great job in terms of transitioning this project from what we always know it was a great open pit mine to what it looks like it may be one of the best ever underground gold mines. This is quite an exceptional deposit. It produced 8,000,000 ounces by the time we got there in 2000 and 3. We document another +8000000 ounces in the open pit. And now there's another £10,000,000 ounces in the underground. So this is ranked as one of the best gold deposits ever discovered in the world, and it continues to deliver value for both the AgniCo and the Embedded shareholders and also the Osisko shareholders. And we congratulate them on a job well done and we look forward to seeing the underground delivery here. We haven't really seen it calculated in our share price, but we think it's high time that everybody understands that the Malartic underground is a significant contributor to Osisko go well as we move forward. And we wish our partners well on that and we want to see it come forward. And if you see look at Page 18, you can see that, predominantly, things that are important to the new mine plan are on the Atascope 5% ground as we move forward. And we see some of the other assets that are there continue to contribute that really weren't in the calculation, I don't think, for Cisco. So that's all good news for Cisco shareholders, and we look forward to seeing the evolution of that mine, the underground transition. Obviously, these gold prices, I think, that everybody being incentivized to move forward quickly. The next slide that we have here shows the Eagle project, obviously, on target for ramping up to 220,000 ounces a year for which we have a 5% royalty on. We continue to be have a site scale royalty on our Eleonore mine. In Quebec, Nantos has been seeing an increase as well. And congratulations to John Brzezinski and the Osisko Mining team in terms of the success that they've enjoyed at Windfall Lake in Quebec with just a massive discovery there with over 5,000,000 ounces of high grade ounces at plus 8 grams and continued drilling with over 30 drills on-site as we speak today. So just a knock it out of the park success there. I mean, if it's still going to be shareholders, this is obviously shows why our accelerator model is important. We backed John at the very beginning of this process, and we were able to achieve exceptional numbers in terms of what we ended up paying for the royalty. But the reality is we took the risk early on. And our model, I think, is proven beyond a shadow of a doubt by windfall and Hermosa, where we've taken these risks to the debts early on, and we just had exceptional returns. And they're so much better than anybody else's work in streaming deals in the space that it's hard to argue that we wouldn't want to continue on with that business. With the returns on some of these deals being in the 1,000 of percent as opposed to the 1% or 2% returns that we're seeing currently go off in the bank run processes for a lot of bidding going on, but not much is being accomplished in terms of net returns. So we continue to believe in that model and the accelerator model is demonstrated well here, I think, by both Windfall and Hermosa. Horned Fly continues to be a significant asset that's in our portfolio. It's been undervalued. It's currently a 6,000,000 asset with geos and reserves, not in resources. And then on to Caribou, which has been a quite a controversial topic within the assisted flow portfolio. Last resource update was at 4,400,000 ounces. There will be an upcoming resource update. And this is a mining project. This is the mining camp. And we're going to give you more information on that as we get further into the year. But I can tell you that things are going extremely well at Caribou and the drill results are starting to build a case to confirm what we always believe, which is this is not just a mining project, but it's a mining camp. On to Page 15, we do have a high exposure to the gold prices. We believe in terms of royalty and streaming companies that we are the purest of them all in terms of being mostly exposed to gold. A lot of other companies are side barred to copper mines or gold polymetallic mines or they have other ingredients in their cake that make them a little bit less exposed to gold. So we continue to be proud champions of the highest gold component in the space with 81% at our finish. On Page 20, the business plan for Assisco hasn't changed since 2014. We're allocating 25% to our earlier stage accelerating models and to the things like Caribou and 75% to our sort of last money in strategy where we're bidding on things like we did with Victoria Gold. The plan hasn't changed too much. And I realize there's been a discount on the stock because of our hybrid strategy. But at the end of the day, when I look around the gold price today, I have to think that we were pretty much right on the money in terms of what we bet on. And we need to deliver those returns in the share price now. So that will be the challenge for the management team as we go forward into the Q4. And as we see the summer end, it is to really bring it home that hybrid model where we put that 25% in the accelerated companies. And we've seen some of these accelerated companies like Barfool advance through the accelerator business into the development business, and we need to take advantage of that for our shareholders. So that will be the challenge for Sandeep and myself as we come into the end of the year to really make sure that we transition that valuation that we created there into the share price. In terms of opportunities, we've looked at our accelerator model and we've created quite a bit of value here. I just wanted to recap for shareholders the things that we did do. The incubation of Osisko Mining happened in 2015. It was at $8,000,000 market cap, it's now $1,300,000,000 to $1,400,000,000 market cap. We did the Cisco Metals with our friend Bob Ware's. Started out as a $5,000,000 $6,000,000 market cap is now $70,000,000 $80,000,000 of Sato Resources. We started that company out in 2015, really. Luke Lessard stepped in and really put the meat on the bone in terms of that project. It's trading at about $100,000,000 right now, but it certainly can be bigger than that. Tallestra resources led by Terry Harbert, really another brownfield camp in BC that's sort of seen the light of day and benefited from the tactical and structural geology that Terry brought to the team to really advance that project forward. Mineral Alamos, we saw that company go from $13,000,000 market cap to currently $230,000,000 So if we get you've only invested in the sidecar companies, so at Cisco, you've done pretty well. And we continue to be that incubation and that source of really hardcore grinder incubation companies where we take an opinion on an asset, we take it and we build it and we get in there early and we work it hard. And that people like Chris Loder and Ruben Padilla and Terry Harbert and Bob Wares and John Brzezinski, they all bring that extra effort and that extra personality and character to these assets that we've been able to uncover as we move forward. And I'm pretty proud of what we've done in the incubation strategy. So on the final slide here today, we have the upside. We have the opportunity. And we have a team, and we have the ability to acquire assets to mobilize those assets and take them through to fruition. And I thank everybody for supporting us as a Cisco shareholder. We look forward to bringing you to the latest fold and obviously Caribou will be a big part of the story as we get into the rest of the year. But also what John is doing with Sysco Mining, Terry is doing with Talisker and Bob is doing with Osisko Metals are pretty important parts of our story as we go forward. So I'd like to thank everybody for today and we'll soon get to, but we don't think that there's anything wrong here. If ever there has been a time when we are ready, this is it and this is it now. So thanks, everybody, and I'll turn it over for Q and A. Thank you. Your first question comes from George Topping from Industrial Alliance. Your line is open. Great. Thanks, operator. He's on Sandeep and everybody else. On the Kalaburi old project, Sean, are you back up and running at full speed there on the exploration and reclamation activities, etcetera? Hello? George, I think I hear you. I don't know if we lost Sean there for a moment or if he's on mute, but I'll start the answer. Hopefully, he's right behind me. But yes, George. Yes, things are generally back up and running. We did take a bit of a hiatus to make sure that we had the least amount of footprint during kind of the pandemic. So generally speaking, we slowed things down. And in the near term, we'll be looking to kind of get back going full steam with respect to exploration and some of the small remedial work that we're still doing there to clean up past sites. So you're still going to spend the $10,000,000 for this year, you think, from the MD and A? Look, I think there's certainly the ability to catch that back up. I think, as I said, it made sense to take a bit of a hiatus just to make sure that we are protecting our employees and the community, most importantly. And there's certainly the ability to cash that back up over the next 2 quarters. Will this roll through to the permitting as well with the government being impacted? Sorry, George, did you say whether there was an impact on the permitting from COVID? On the path of the permitting schedule? Yes. Not as of yet. I mean, I think there's been enough buffer and redundancies in our permitting schedule that we can absorb kind of what's happened in the near term. Our team has continued to work, whereas we weren't necessarily full steam on-site. We've certainly been full steam ahead on the permitting side. As you can imagine, a lot of that is desktop work and engagement. So that's all been ongoing as fast as we can get it moving. So I don't think we've really suffered any delays from that perspective as of yet. And again, I think if anything, we have the ability to fast track permitting the community, the First Nations, the government have all been very supportive. And we look to kind of continue that with them. And as long as we keep acting responsibly, we think we have the opportunity to make up ground, not necessarily lose it. All right. And a second question is the Diamond market. I'm interested in what you're seeing there with respect to diamond sales and pricing, obviously, for the Renard Diamonds. Yes. Obviously, Renard remains on care and maintenance. The diamond market was considerably busted to this COVID piece. We're starting to see signs of life just broadly on the diamond side. There are more sales kind of coming about. Some have already transpired. We've seen a small uptick on that side. But I don't think it's I think it's fair to say that we're not out of the woods there from a diamond price perspective nor is anyone in the sector. But we have seen some moderate improvement. I think from a retail perspective, again, we're not back to pre COVID levels, but there are positive signs out there that things are returning to normal, if you will. And so I think we'll be cautious, and we'll look to see some moderate improvement. But there are we've got a very sound partnership that's involved with the Renard mine. It is a good mine. There's $1,000,000,000 of good infrastructure that was spent there. It's really just missing a little bit of joy from a diamond market perspective. But we certainly hope the guidance we put out today does not reflect Renard just given the continued uncertainty from a diamond price perspective, but we certainly hope that Renard will come out come back into the fold for us. And I think the partnership is working on ways to do that going forward. The commodity specialists that you speak to, are they predicting a price in, say, the next 12 months or so at a level where you might reopen the rental? Yes. Look, I think there's certainly that ability. I think it remains to be seen. Obviously, it's not the least opaque market to have to operate within from a pricing perspective. I think the sales that are coming up now, some of the ones that have already happened, some of the ones that are coming up soon, will be pretty telling. And you can imagine we're keeping a close eye on that. In the meantime, I think the mine has been doing everything they can to bring their own cost structure down so that they can bridge that gap not necessarily through diamond prices, but also through just being more efficient at everything we do. So look, I think, as I said, a lot remains to be seen there, but we are cautiously optimistic that with just a little bit of improvement on the Diamond side, there might be a restart there in our future. And George, maybe I'll just add a little bit of color to that. As you and I know, we've been around for a while. It's never as good or as bad as everybody likes to think it is. And I think the diamond market, we're seeing a lot of sort of smart people are going back and doing assets in the diamond space. So cautiously optimistic all the way around on the diamonds. Your next question comes from John DeNardo from Very Independent Research. Your line is open. Thank you. Congratulations on the better price environment. Maybe people will understand and embrace the incubator model now. I'm trying to throw you a cream puff Well, John, we certainly hope your enthusiasm is shared. I'm trying to throw you a cream puff without being too difficult. Maybe people don't understand the value of Caribou or how smart it was to buy Barkerville late last year. What is the lowest what is the highest offer you've turned down for Caribou? Or what do you what is the lowest you'd sell it for? It looks like it's a big Don, you're putting me on the spot on a lot of fronts here. But I will say that Caribou has continued to deliver, not just obviously from the gold price change, but we've had significant success at the drill bit on that project. And we're going to be coming back to the market to tell you about that here in the next short while. But obviously, we bought a it was a 4,600,000 ounce deposit at $1300 gold, and we're now dealing with $2,000 gold. So we don't know or claim that we're too smart, but we were smart enough to recognize that this was an asset unlike others. It's not just a mine deposit that we've identified. It's the overall resource that we're dealing with there is only in the first four kilometers, and we have 83 kilometers to deal with. So we kind of feel that we had to take the hit that we took, and there was a lot of punishment that was dealt on the share price for that. But hopefully, we'll see some reward as we come back and we demonstrate the strength of this asset and the fact that it's not just a deposit, but it's actually a mining camp. So we've got our work to do, John. And we've said no to quite a few corporates, and there's a lot of discussion around it because the number of deposits that can actually go to 5,000,000 ounces of mineable in the world is quite slim. And Barkerville is a camp, and we see upside there. A single process facility with multiple mines up and down the trend as we get forward on to it. And we'll be a little more vocal about it as we come into Q3 and Q4, John, and appreciate your view and the fact that you've done the work to go and look at what Barkerville actually is. Do you think it's reasonable to expect the payday to be over US500 million dollars with the first US500 million dollars tax shielded? I don't like to put numbers like that out there without having a lawyer and accountant sign off on them, John. But certainly, we see here in a PA study that we did last year, a couple of 100,000 ounces a year with all in sustaining costs being below 800, sort of in the mid high 700s. This thing is worth a ton of money. Your next question comes from Terry Smith from KBW Securities. Your line is open. Thanks, operator. Sean or Sanjeet, just on Caribou, you were going to provide an update sometime later this year on that asset. Will the resource update come as part of that disclosure? Or is that going to come out earlier? Kerry, I think where we are on right now is that everybody has been so negative on the asset. We've been a little hesitant to get out there. But our work is being done, and we're going from 4 to 10 drills on the project as we speak. And as we get more comfort in terms of delivering not just a resource update, but a reserve update, we'll come back to you. But I would suspect it to be in Q4. Okay. So it'll all come at the same time then. Okay. That's great. Thank you, Sean. Jerry, we're going to deliver a bulletproof resource in reserve to you. We don't really want anybody else poking at this thing. We know the asset is solid, and we just want to make sure that we deliver the proper product. Okay. I got you. Thank you. Your next question comes from Jeremy Voigt from Canaccord Genuity. Your line is open. Hi, thanks for taking my question. I think a lot of my questions have been answered. Actually, they were all surrounding Caribou and Barkerville. Just related to next steps in the back half of the year. You guys have a resource reserve update coming. Anything else going on with that project? You mentioned increased exploration as well? Yes, absolutely. Mr. Loder and Maggie have taken amongst themselves to go out and get us 28 new drill targets. So we will be hitting those targets on a priority basis outside of our infill drilling. And yes, it's been very exciting times at Barkerville. And I hope that everybody will be impressed when we come forth with the information. But given the reaction of the United Bar has grown in the past, we're not going to come out until we actually have a final product for you. So it will be 4th quarter information, and we will make sure that everything is drilled beyond the shadow of the doubt before we show it to anybody just based on previous reactions to that asset in terms of where it sits. We think that metallurgically, mining wise, permit wise, that we've been able to derisk the asset significantly. But we're going to come forth at the same time with that information probably more into Q4. I appreciate that. Thank you. Your next question comes from Adrian Bey from Asset Management. Your line is open. Thank you. Just a quick question. Listen, I may have missed it completely, but with the Milotic underground, did you, in the end, have to make any concessions on the royalty? Adrian, thank you for the question. The answer is no. The question that was being served up in the marketplace to shareholders previously was whether the royalty was making as much money as the rest of the mining group was at $1200 or $1300 gold price. I think that, that discussion has ended. We're obviously well north of $1200 to $1300 gold. We have no intention to make any concessions now. And there's been a bit of a discount on the Osisko share price anticipating that we would be making a concession on that royalty, but we have no intentions to do so. And obviously, a $2,000 gold is not really even a relevant discussion that we would entertain. Super. Thank you. Thank you. We have no further questions. I'd like to turn the call back over to the presenters for their closing remarks. So I'd like to thank everybody on the call today, and we appreciate it. Cisco has been a growth company, and we've had the lumps and bruises going through the marketplace as we built that growth portfolio. But obviously, I think that multiplied by the current commodity price that the risks that we took in building this portfolio over the last 5 years is paying off for us now, and I encourage Osisko shareholders to be loud and proud about their persistence and their participation with us as we went through this asset building program. And I'll sign off there. And thanks, everybody. This concludes today's conference call. Thank you for your participation. You may now disconnect.