Earnings Call: Q1 2018

May 4, 2018

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q1 2018 results conference call. After the presentation, we will conduct a question and answer session. If you would like to ask a question, please pick up your receiver and press star one, star followed by the number 1 on your telephone keypad. Please note that this call is being recorded today, May 4th, 2018, at 10:00 A.M. Eastern time. Today on the call, we have Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties, and Mr. Bryan Coates, President of Osisko Gold Royalties. I would now like to turn the meeting over to our host for today's call, Mr. Sean Roosen. [Foreign language] Bonjour, mesdames et messieurs, et bienvenue à l'appel conférence du premier trimestre 2018 de Redevances Aurifères Osisko Limité. [Foreign language] Après la présentation, nous procéderons à une séance de questions et réponses. Si vous désirez poser une question, veuillez décrocher le combiné du téléphone et appuyer sur la touche étoile suivie du numéro 1. Veuillez prendre en note que cet appel est enregistré aujourd'hui, le 4 mai 2018, à 10 heures, heure de l'Est. Nous avons sur l'appel d'aujourd'hui Monsieur Sean Roosen, président du conseil d'administration et chef de la direction de Redevances Aurifères Osisko, et Monsieur Bryan Coates, président de Redevances Aurifères Osisko. J'aimerais maintenant céder la parole à votre hôte, monsieur Sean Roosen. [Foreign language] Merci beaucoup et bienvenue à l'appel conférentiel premier trimestre d'Osisko Gold Royalties 2018. On a une présentation PowerPoint sur notre site web. On va suivre aujourd'hui et je vous invite à chercher cette PowerPoint sur notre site. Welcome everybody to the first quarter conference call of our financial results for the first quarter of 2018. We're going to be following a PowerPoint that's found on our website, called Q1 Results. There is a disclaimer page on the front of this PowerPoint, we will be making forward-look statements, and I would refer you to that statement for the disclaimers required. We want to start the call today a little bit different than usual. Given that our friends from Barkerville have published their maiden resource yesterday, the best question of the day will be receiving a pair of Barkerville gold cufflinks. On to the main event. For the first quarter of the year, we had 20,000 ounces of GEOs, gold equivalent ounces, which fits in with our annual guidance of 77,000-82,000 ounces of GEOs. Cash operating margins were at 91%, the highest in the precious metal sector. We generated CAD 29.5 million in additional cash operating, and we also had from our offtake agreements a CAD 2.4 million delivered. Record cash flows from operating at CAD 23.3 million, a 94% increase over Q1 2017. We also executed the investment of CAD 148 million in Victoria Gold Eagle project in the Yukon, CAD 98 million of that to purchase a 5% royalty, which will deliver 10,000 ounces per year of gold, a very significant add to our asset base and a Canadian asset fully permitted and under construction as we speak. We were also able to convert the Matilda gold offtake to a royalty of 1.65% into a stream, sorry. We monetized about CAD 25.6 million of equities, a realized gain of CAD 15.5 million. One of the things that I do want to highlight today is that from the investment in our accelerator companies since we started in June 2014, we have harvested over CAD 70 million in realized gains, and our equity book still remains at just under CAD 400 million. We've had both excellent returns and a very much appreciated increase in value within the asset base of our accelerator companies. We've also earned several royalties through our accelerator model that has about a CAD 90 million cost base and probably has a market value in excess of CAD 200 million as we sit today. The accelerator model really has performed most of our traditional royalty and streaming opportunities, and we'll be going further to highlight that as we get further through the operating year 2018 as to how the returns are working on that model. We also repaid CAD 32 million on our revolving credit facility in April. We distributed CAD 7.8 million to our shareholders through our 14th consecutive dividend payment. Right now we sit at a 1.6% yield, which is near the top of all companies in the gold mining space. We repurchased 1.6 million shares at CAD 12.65, and we continue to be believers in our own stock. If the market devalues our stock, we are buyers of our own stock, and we believe strongly that we are in a very low valuation period. On the theme of buy low and sell high, I would encourage everybody on the call today to have a serious review of the underpinning value within Osisko Gold Royalties and maybe share our view on the value gap that exists in the marketplace today. Moving on to page four, we've gone from 10,000 ounces in Q1 2017 to 20,000 ounces in Q1 2018, 100% increase year-over-year. Guidance right now is we're 77,000-82,000 ounces for the year of gold equivalent ounces, and giving us one of the strongest growth profiles in the precious metal royalty and streaming space. Page five, you can see the evolution. We started out, our first full year of business was 2015 at 30,000 ounces. We finished this year at just a tick under 59,000 ounces. Now we're 77,000-82,000 ounces for 2018. Page six basically gives you a breakdown of how our assets work. Obviously, we have some very big assets here. Canadian Malartic is by far one of the most valuable assets in the royalty space in the world, and Canadian Malartic continues to strengthen with adding resources and reserves both in the Odyssey area and East Malartic Pit. We see it as a growing asset, and it continues to get stronger and stronger. Canadian Malartic is now ranked the 12th largest gold mine in the world, the largest gold mine by production in Canada. Last year it was 17th, and it's moved up the ranks by five this year. Éléonore, CC&V, Brucejack, Island Gold, Vezza, and a combination of other producing assets have taken us from the 30,000 ounces to 59,000 ounces gold equivalent. As you can see, our split, we are at 69% gold, 16% silver, and we have 11% in diamonds, and just 4% in other minerals. Dominantly gold and silver business, as we talk about how we fit into the royalty and streaming space. Cash on hand and the cash flow from operating activities. For this year, we had CAD 23.3 million. Adjusted earnings, we had CAD 8.9 million for the quarter. Page eight, I'm going to hand it over to Elif Lévesque, our CFO, and she's going to take you through the Q1 results from the financial statement. Thank you, Sean. Like Sean mentioned, we had a very strong quarter. The results mainly reflect the impact of the addition of the Orion portfolio, increase in the cash margin. We did see a 94% increase compared to the same quarter last year, ending at CAD 23.3 net cash flow from operating activity. That really reflects the increase in cash margin. If we do look at the adjusted earnings, we do actually see the impact of the increase in gross profit, partially offset by higher finance costs, also higher due to the reduced G&A. In terms of the GEOs, you will see again, we have almost doubled compared to the same period last year. The revenue is also seeing the increase with the effect of the Orion portfolio. Our cash operating margins stand at 91%, looking at royalties and streams compared to the CAD 17 million same period last year. For the year, we're probably looking at more of an average of 87%. In addition to the cash operating margin from the royalties and streams, we also get a 2.6% of the margin from the offtake fee. We look at those agreements more on a financial settlement equivalent basis. They do add a little bit on top of what we would see from our royalties and streams. The net earnings for the quarter stand at CAD 2.3 million compared to a CAD 4.1 million last year for the same period. Looking at our financial position on page nine, cash and cash equivalents were at CAD 333 million for the year at quarter ending March 31, 2018. If we look at April 30, we're at CAD 205 million, which reflects the payment of CAD 32 million on our debt facility and the gain of CAD 12.9 million on the Victoria V deal. Our debt also shows a reduction in CAD 32 million when looking at April 30th numbers. Our credit facility right now stands about CAD 117 million drawn. Investments at CAD 351 million as of the end of March 31, and CAD 302 million as of April 30th, with the addition of the Bessie Mine and Victoria as well. Thanks, Elif. Obviously, balance sheet's in great shape. We have quite a bit of liquidity, quite a bit of firepower on our balance sheet. We are able to continue on and look for valuable transactions in 2018. We are in a position to execute, if we see fit, on any investment that looks like it meets our criteria. On page 10, we are on our 15th consecutive quarter of returning capital to shareholders. We believe that this brings a level of discipline to how we run our business. We're very proud to be one of the companies that paid a dividend in the second quarter of existence when we started this company in June 2014. One of our priorities was to be a top-end dividend payer within the space. We're currently yielding 1.6% to the market, which is within the top five companies in the space in terms of dividend yield. Not only do we have good underpinning asset value, we are also paying everybody that stayed with us in a very aggressive fashion compared to the rest of the space. Page 11, I wanted to go through the acquisition that we executed with Victoria Gold, our new partner. We currently own 15.5% of the company, and we have a 5% top-line royalty on the asset. This is an asset that is fully permitted and currently under construction. John McConnell and his team. Highly capable people. They've built lots of mines in the north before. I met Mr. McConnell when I worked at Nanisivik back in the 1980s. He was the mine manager then, which was on Baffin Island. Couldn't be a better team to operate in the Yukon than John McConnell and his crew. We financed the company for CAD 148 million of a CAD 500 million overall project financing. The project is 100% financed now. It's located 85 km north of Mayo, which is a well-known mining district. It's a drive-to site, not a fly-in/fly-out. Has reserves of 123 million tons at 0.67 grams for a total in-situ resource of 2.7 million ounces. We see significant upside in the geological environment in which the deposit is found. There are several historic high-grade deposits in the area. Now that we have a beachhead in the area, we think that this is a camp-style play and that we're going to be here for a good time, a long time, and make a lot of money in this camp. We look forward to developing it. We think the Yukon is the premium jurisdiction in the world right now to invest in terms of regulation, in terms of being mining friendly, and in terms of geological potential. This is the best of the best. We're looking for 10,000 ounces a year average gold GEO production for us, which would make it one of the cornerstone assets within the Osisko family of assets. It's a very simple project. It's essentially a crusher and a heap leach, yellow dump trucks. Not particularly challenging on the technical side, but lots to do in terms of upside. On to page 12, a real review of our geopolitical risk management system. We've stayed dominantly Canadian, dominantly in North America, and in premium jurisdictions in South America. As you can see, most of our key assets, Renard, Éléonore, Canadian Malartic, Brucejack, Bald Mountain, Carol Island Gold, Gibraltar, Seabee, Vezza, are all Canadian assets. In South America, where essentially the biggest asset we have there is Mantos, and again, another premium jurisdiction. Other assets that we own right now, South Aquila, Matilda, and Amulsar in Armenia. All in all, pretty much a dominantly same-jurisdiction asset base. Page 13 shows our near and medium-term cash flow assets that we're seeing right now. As we talked about, Eagle is under construction now. I'm very happy to announce today that Barkerville poured 44 kilos of gold last week, and we will be receiving our first gold shipment from an accelerator company. The accelerator model has gone from conception to execution to production, and we are now receiving gold from one of the accelerator companies. We have a 2.25% royalty on that. We are actually have gone much faster than I thought we would in the accelerator model, and that Barkerville is now in full-scale production and shipping gold to Osisko Gold Royalties from the Cariboo mine site. We also have earned a 1% royalty on Hermosa, which Richard Warke and his team have done a most excellent job of advancing in Arizona, one of the best discoveries in the world, and currently sinking ramps. That 1% royalty that we purchased two years ago has gone up in value significantly as they de-risk that project. We've also seen great progress from Osisko Mining at Windfall. We have a pending resource coming out at Windfall. Last year, we had 24 drills starting at Windfall, and it was probably one of the most intense exploration campaigns in the world, if not the most intense. We're going to see the product of that exploration result coming out later in the month. Other assets that are performing for us, Pandora with Agnico Eagle, Lamaque with Eldorado, Barban that's held within Osisko Mining. Obviously, the one, the only, Canadian Malartic continues to deliver with new discoveries at Odyssey North and South and East Malartic. We also earned a royalty of an 18.5% gold stream and a 75% silver stream on the Back Forty project owned by Aquila in Michigan. We have a lot of growth assets that are already paid for. As those assets move through the value chain, no further investment required for Osisko Gold Royalties, but we will be the benefactor of all that investment and all that production. Summary slide on page 14. As we sit here, we're about to celebrate our fourth year in business in June. We started this company through an IPO, half of the shares of Canadian Malartic, June 17th, 2014. We now have 130 royalties and streams, five cornerstone assets, 20 assets in cash flow, paying a sector-leading 1.6% dividend, precious metal-focused, Canada-focused, 20,000 GEOs delivered in Q1 of 2018. This is a company and a business that makes money 24 hours a day, seven days a week, 365 days a year. We have a growth pattern to go from 8,000 ounces now to over 150,000 ounces in 2023 without any additional investment. The balance sheet is in great shape, over CAD 382 million in our equity investments, which we're seeing a lot of derisking going on in terms of resource being delivered, as Barkerville delivered 2.2 million ounces of inferred resources and an amazing resource at the Cariboo Gold District. We have many more things to come in the near term in terms of the accelerator companies as they build up. Over CAD 200 million in cash and over CAD 250 million under our debt credit facilities. We're in great shape going into 2018. A lot of the foundation work was done last year. We executed the acquisition of the Orion portfolio for CAD 1.1 billion, making it the largest royalty and streaming transaction since the IPO of Franco-Nevada in 2010. We continue to blaze trails and create new business models within the royalty and streaming business. We are looking forward to a very innovative year. We have a lot of good things in the pipeline, we're contributing to cash flow, and we're seeing a branding and a maturity within our accelerator model, transitioning from concept into reality, with the addition of resources and production within that group of companies. On that note, I will open it up to any questions that we have for today. I thank everybody for taking the time. I know this has been a busy couple of days for reporting. I appreciate everybody's effort, in terms of participating in today's call. I'll now take any questions that anybody might have. At this time, I would like to remind everyone that in order to ask a question, please press star, then the number 1 on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Kerry Smith with Haywood Securities. Your line is open. Thanks, operator. Sean, just one thing, one question on a more strategic level. With the competition is pretty fierce for the sort of plain vanilla royalties in the gold and silver space, is there much opportunity for you to find royalties, to create royalties in, say, the cobalt, lithium, graphite space, or kind of esoteric minor metals? It just seems like the competition's pretty stiff for the precious metal stream. I just wonder what the deal flow might be like in those other specialty metals. Good question, Kerry. Competition be what it may, we're the first ones to print a deal on a royalty, 5% top line royalty in Victoria this year. In terms of alternative metals, we look at them from a strategic base quite often. We haven't executed anything in that space to date, but we are active and aware of it. As you well know, a lot of the crew that works for Osisko Gold Royalties came from Cambior. They built Niobec, and they have a fairly good view on specialty metals. We're aware and capable of operating within that space. We'll take them as they come, but we have not executed anything yet. That doesn't mean that it won't happen in the future. Okay. Just a second question. Can you enlighten the timing, how the buyback works on the Pretium stream and the offtake? Just remind me of the timing on that, if it's going to happen. The Pretium offtake, there are several conditions on the offtake that are important to remember. They can't execute the offtake until December 31st, 2018, at which point they would be paying us CAD 160 million. To get there, they have to retire all of the debt held by Orion. Until the debt deal is done, they can't execute the buyback. Then there's a second date, December 31st, 2019, at which point in time they pay us in excess of CAD 130 million. Same conditions apply. Two things noteworthy. We also own an offtake agreement, so our 50% of the gold is produced by the mine that we market. We have a six-day look-back window on those gold purchases. If you look at our offtake win, we had about CAD 2.4 million of gains in the offtake agreements. A lot of that came from the Pretium offtake. Another note on the Pretium buyback is that, should the company be sold before those buybacks are executed, we would split a, I think it's just over 13% of the gross sale value of the company between ourselves and the other offtake agreement. We have many ways to get returns on Pretium between here and now. If those offtakes do not get executed, and the company does not get sold, we would start to receive our stream in 2020. Quite happy to affiliate on more detail on that if anybody wants to send in a note. All the information is public. We'll give you a summary of how the deal works, if that helps. We think that Pretium, it's always been a question of the stability of the resource. We think that Pretium is going to have a quarter-by-quarter sort of up and down because of the way the ore body will strip under the overall basis. This is a world-class asset. It's going to perform. Whether the buyback gets executed or not, we're strong believers in the Pretium project. We think that there's lots of upside in the Valley of the Kings and in the Golden Triangle in general. We think that this is the very beginning of the redevelopment of the Golden Triangle. We're quite keen on the asset, quite keen on the overall camp play there. Okay. That's great. I appreciate it. Thank you. Your next question, [Foreign language], comes from the line of Carey MacRury with Canaccord Genuity. Your line is open. [Foreign language]. Hi, good morning, guys. You mentioned 150,000 ounces by 2023. I'm just wondering if you can give a bit of color on which assets do you see coming into production to drive that? Sure. Obviously, in the chute right now, we have the ramp up at Amulsar that's scheduled to happen in the fourth quarter this year as they finish their construction. We have Pretium. We have Back 40 in there, and we have Eagle, which is under construction. All these projects are fully financed and underway for the most part. We expect to see those assets in the food chain between now and 2023. Secondly, on Victoria, we've seen a lot of transactions that involve streams. I'm just wondering, was there something particular about why you used the NSR model there rather than a stream? I think each company has their preferred model. For us, royalties are more tax efficient, and we prefer them for the simplicity. I think from a management standpoint, the royalty is quite straightforward. It's a Yukon asset. Most of these deals are tailored around the jurisdictional regulations that make the most advantage. In terms of where it sits for us, it's 100% margin gold, so it's obviously very good for us. For the company, it's the most efficient way to get the capital as they require to build this asset. We've partnered up with Caterpillar Financial, Orion, and ourselves to deliver a full package of CAD 500 million here. I think in terms of how you look at project financing, at the end of the day, it's about the asset, and all of the financing is related to the asset. this was the combination that worked the best for this situation. Okay, great. Thank you very much. Your next question, [Foreign language], comes from the line of Dan Rollins with RBC Capital Markets. Your line is open. [Foreign language]. Yeah, thanks very much. Sean, just on that last question. When you speak about Brucejack, are you including the stream, or are you assuming that's been bought back and it's just the offtake and that 150 sort of number? If you look at our presentation, Bryan, we've always shown it assuming that the Brucejack buyback has occurred, which represents about 20,000 ounces a year by the time we get to 2023. If it doesn't happen, then we would add 20,000 ounces to our assumptions. Okay, perfect. And then just with respect to the deal flow going forward, if we look at more precious metal-focused opportunities, what do you see out there in the pipeline? I guess 3 to 6 months ago would have been more development stage opportunities. Obviously, you've pulled the trigger on Victoria there. Do you see the pipeline still pretty good right now, or are you starting to see a bit of a wane in the opportunities? Well, obviously, the performance of current equity markets has set the stage for royalty and streaming. I don't think anybody's going to achieve much project financing through equity offerings at this point in time. As you would be well aware, Bryan, the amount of equity deals that have been executed in 2018 is close to zero. The only thing that's getting done right now, I believe, are equity associated with stream or royalty deals, debt deals, and supplier take-back loans is really the only source of financing for development projects right now. We see it very much as a development market until the equity markets open back up. But we know that there's probably 100 companies that need to do equity deals right now that haven't been able to get any traction on equity at the office. We've focused on combining with our partners to do full financing offers where we're providing everything that we need to. We're seeing an awful lot of discussion about M&A that often requires an injection of cash in the transaction to make it work. We see both M&A and project financing being the business of 2018. And I don't think there's any shortage of opportunity. If I had a dollar for every call that I got to be in an equity deal this quarter, I'd probably be golfing with you, Bryan. Well, I don't really golf as well, so unfortunately. There's no golfers in this office either. Just with the mention of partners and the full financing package. Before, the royalty stream would have been there with equity, with a debt component. The equity component's not there. Do you see yourselves working with Caterpillar in the future, potentially Orion in the future, and maybe other parties to offer this full-fledged financing package? How would you compare your ability to do that relative to your peers right now? I think we're in pretty good shape, Dan. Our traditional relationship has been with CDPQ, KC Bo, GDPRD, and obviously Orion is now a big shareholder with Osisko. We've had good partners in terms of everything we've done with BlackRock, Fidelity, M&G, Tocqueville, especially, has been a great supporter. Also Franklin out of California. We think that on a debt provisional basis, we have several partners we can work with. We want to be part of a full solution because there's no use in having a royalty on a partially financed project. You need 100% financing for the royalty to have value. As you know, we like to partner up with groups that need some technical support, and our technical team is still very much intact and very active through the accelerator companies. We've been able to preserve all of our technical capacity. We've just started leading the charge over at Falco, but we have mine building, and we operated the largest exploration program in the world last year with 41 rigs turning. We have quite a bit of depth on the bench in terms of drillers and exploration transitional to development stage projects. As you saw, we just drilled out at Barkerville, Windfall has been drilled out, and we're getting ready to announce the resource there. We delivered the feasibility study on Falco. We're active on a lot of fronts, and we've kept our technical integrity alive. I think that we're a catalyst investor that debt lenders and people that may be not as technical as us like to have in the mix for project financing. That's where we see our niche, is that we can be a lead on a project financing. We can provide technical oversight for the group as the lead financer in these things. For the companies that we're investing in, it gives them some peer review and some depth on the bench for any technical services that they may, as a single-asset company, not have available to them. I think we're pretty happy with how our business is set up, Dan. It's taken a little while for the market to adjust to it, but I don't think there's any doubt at this point in time that the potency of our model is coming to bear, especially in a down tick market like we're in right now. Sure. That's very informative. Appreciate that. Enjoy the weekend. All right. Thank you, Dan, I believe we're over to Mr. Mike Jellinek. Yes, your next question is from the line of Mike Jellinek with Bank of America. Go ahead, please. Your line is open. Thanks, Sean. I'm just on the fifth tee here at Oakville Golf Club, I'll make it quick. I think you're supposed to join me, Bryan's here instead. Bryan's a better golfer. You're well off. Just a lot of my questions were answered, actually one that's struck me on page 12, 13, your geographic diversification. Obviously, you have a couple of assets, a few in South America, one in Armenia, you're obviously very North American centric. Is there any thought process to going afar? Some of your, like Franco-Nevada's quite into Australia now, just, Wheaton Precious Metals's into LatAm along with Franco-Nevada. Just wondering what your thought process is there. Well, Mike, as you know, we've had quite a bit of success in Canada. I think that we, through our accelerator companies, have generated significant opportunity within Canada. Our accelerator companies collectively control over 10,000 sq km of mineral licenses in Canada. That's where we start. Every investment outside of that is really about the operator. I'm not too concerned about the jurisdictions, but if we're with the right partner who understands and can manage that jurisdiction, we're quite willing to go with them. In terms of other major or mid-tier companies that are operating in those jurisdictions, we're quite willing to participate financially, as long as the corporate has the integrity for the jurisdiction that they're in. We'll be looking more on that, but as you know, we just did another Canadian deal in Q1. We led the charge. I don't think there's been another significant royalty deal done so far this year. We're first out of the gate again. We did the biggest deal in the sector last year. We got a good start on 2018, and again with Canadian assets. We'll stay on the Canadian team, but as I say, once we leave Canada, it's really about the operator. Okay, maybe just one follow-up. How many more companies would you add to your accelerator lineup there? I think you have around 10 if I'm counting right. What's the optimum number? You said you're getting a call every day now. I think where we are, Mike, is that as long as we see value, we can contribute, we don't do these incubator accelerator companies unless we have market participation alongside of us. We'll follow a bit the market, what they want us to do. As you saw, we created Osisko Metals last year to participate in the zinc plays. We've also added Sierra Madre in Mexico to our portfolio, and now we've added Victoria, where we own 15-and-a-half %. As long as there are good companies with good management teams, with good ideas, we're going to be there all day, every day. I don't think there's a limit to how many we would do, but there is a limit to how much our equity book would be. I don't think that we want to see our equity book expand much further in terms of dollar value than what it is now. What I would say to you is that we're probably at a sell something to buy something stage within our equity book at this point, and we want to recirculate that cash. Just to reiterate, if you look at our equity book right now, we have CAD 382 million invested. But in the last three years, we already have realized gains of CAD 79. And the royalties that we earn in that, we invested CAD 90 million inside our royalties, because generally speaking, the only time we own an equity is if we've got a royalty or streaming opportunity. And the value of that CAD 90 million investment into royalties and streams that we've earned on the way into this is well in excess of CAD 200 million. The way we look at it, Mike Jellinek, is that our accelerator model is almost paid for itself already. In our minds, we see about CAD 170 million, CAD 200 million of returns from the accelerator model, the way we think about it, that we've already earned, which is far superior to any royalty and streaming project that's been out there. It's been a potent part of the business. Now that a lot of these accelerator companies are moving from concept to resource on to PEA feasibility, we see the gel of the value in that. I think you'll see throughout 2018 the potency of the accelerator companies. The capital at risk, the way I think about it, if I take away the value of the royalties and the value of the realized gain and the current equity book, we don't have that much capital at risk to execute this strategy. Shareholders need to understand how potent this thing has been. We've been very fortunate in terms of our equity return. Not many people have realized a CAD 70 million gain on a CAD 300 million equity book in the last three years. We've been able to do that, and those are tangible assets. I can tell you the numbers because we've sold the stock and we've harvested the positions. That's where we are. 2018 will be a lot of us explaining to people what the significant returns have been on the accelerator and incubator model for us. We think that we have a lot less cash exposed in the accelerator model than the market is actually perceiving right now. That's one of our main themes as we go forward into the rest of 2018. Okay. Well, thanks for that answer. Maybe you should be on the golf course this weekend because I see you got an eagle in the Yukon, congrats. Thank you. Well, it's better than a beagle. An eagle is two under, I assume a beagle is two over. All right, that's our last question for today. Thank you everybody for calling in today, we've really worked another couple of answers today. Ladies and gentlemen, this concludes today's conference call. You may now disconnect.