Iamgold Corporation Ordinary Shares

Thank you for standing by. This is the conference operator. Welcome to the I Am Gold first quarter 2023 operating and financial results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. At this time, I'd like to turn the conference over to Graham Jennings, Vice President, Investor Relations and Corporate Communications for IAM Gold. Please go ahead, Mr. Jennings.

Thank you, operator. Welcome, everyone, to the IAM Gold's first quarter 2023 operating and financial results conference call. Joining me today on the call are Renaud Adams, President and Chief Executive Officer, Martin Dinesen, Chief Financial Officer. Bruno Lemelin, Senior Vice President, Operations and Projects. Craig McDougall, Executive Vice President, Exploration. Jerzy Orszakowski, Executive Project Director, Cote Gold. And Tim Bradburn, Senior Vice President, General Counsel and Corporate Secretary. Before we begin, we are joined today from IAM Gold's Toronto office, which is located on Treaty 13 territory, on the traditional lands of many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa and the Haudenosaunee, and the Wendat peoples. At I Am Gold, we believe respecting and upholding Indigenous rights is founded upon relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website. I'll now turn the call over to our President's CEO, Bruno Adams.

Thank you, Graham, and good morning, everyone, and thank you for joining us today. First off, I want to thank and congratulate the IAM goal teams, including our chair, Aris Belanger, our board of directors and management, our operations, finance, and business development teams, and everyone at the organization for positioning the companies do I see this company in the future? I can tell you before officially starting in the beginning of April, I spent several weeks behind the scenes getting up to speed on the company and learning about the achievement and progress of the operations in Cote. It was clear to me then, and even more so now, that Ion Gold is high-margin gold release. Our second mine has been performing well, with the teams and country demonstrating great initiative and resiliency. Our Westwood mine is starting to make real gains on completing underground rehabilitation work and development and support of the future mine plan that is highlighted by a new and transformative initiative. And of course, all eyes Canada. I'm excited and eager to turn our market focus from looking back to looking ahead of what is to come. We will soon be making the transition from fixing operations and managing constructions towards the real value drivers in our business and demonstrating execution success, operation results and highlights. I'm on slide five. Starting with health and safety. While our metrics in the first quarter struck above our internal targets, these sure remains in line with our peers. With a days away restricted transfer duty rate of 0.6 and total recordable injury rates of 0.84 based on 200,000 hours worked. Ensuring that all our employees call to ensure we achieve zero harm. On production, in Q1, the company produced 113,000 ounces of gold on an attributable basis from continuing operations, putting us well on the path of our production guidance target of 410,000 to 470,000 ounces this year. As we will get into in a moment, the production results were Our costs were higher in the same period of last year, so the inflation that ourselves, the industry experienced in the second half of last year, was a general cost of doing business. I'm now turning to a slide set. Turning to a second. period last year. As we saw during the period last year, the mining fleet could not be operated at full capacity during January and February as a result of disruptions in the fuel supply resulting from the security situation. It should be noted, though, that the situation improved during March and the mining fleet was operating at near full capacity during April. Miltrop was in the first with throughput 31% lower than the same prior year period. The decline in throughput and lower plant utilization during the quarter is primarily due to the fuel supply constraint discussed. a potential improvement. Looking ahead, the Sakana is on track to achieve its coal production guidance range of 340,000 to 380,000 ounces to go. Mining activity is trending towards normal operating level in April, and it's expected that we will be able to operate nearer the normal levels during the remainder of the year, including the planned waste tripping in the second and third quarter to provide access to the required mining areas in order to meet Mil-tropon is expected to return to normal levels with head grain expected to decrease over the course of the year as the mill feed incorporates lower grain material from stockpiles. Turning to Westwood, gold production was 21,000 ounces of gold in the fall. safe access to multiple or phases, including high-rate passport and we expect to see an increasing proportion of our source from the underground mine as the year progresses. Mill fees will continue to be supplemented from available surface and the rehabilitation work decreased, we expect to see significant costs step down. With the goal of positioning the asset for free cash flow starting towards the end of the year, on time for a better and profitable 2024 and beyond. Turning to Cody Gulf. time at site with the team. It is very exciting to see the progress the team has made, and I could see the project firsthand. Kodi Gold, once up and running, will be Canada's third largest gold mine, and the impact that Kodi will have on this company will be substantial, with a long line Code is now ramping up to peak activity, now that the Spring Belt is nearing completion, and there is a clear roadmap in front of us to achieve success. Looking at the project spending, in Q1, the project GD incurred $158.6 million. $1.96 billion on a 100% basis. Code EGO remains on schedule, and the estimated attributable cost to complete a construction on a 70% and incurred basis is $625 to $700 million, assuming a U.S. GAT rate of 132. Thank you, Renaud.

As mentioned, the first quarter saw important progress for the project, achieving significant milestones and networks, processing plant and operation readiness. At the end of the quarter, the project was approximately 80% complete, having achieved 7% of progress in the first quarter of this year, which was a cold winter season. this spring and summer. On earthworks we have achieved the first target of the TMF reaching the elevation of 392 in March in preparation for the spring freshet to allow for the water accumulation to support commissioning activities later this year. Having reached the freshet milestone with the scheduled float on the earthworks we have used this opportunity to slow down a bit production mixture. Let me give you a quick commentary to the pictures on your screens. Taking it from the top left corner, this is the status of the high voltage incoming substation. We are planning to start early commissioning activities in the air in this area early Q2 in preparation for you to This is a grinding area. You can see the ball mill which installs BM gear and vertical progress. We have a very good progress in our Finally, you can see in the bottom left corner the bird's eye view from the Town Farm site. This is another area which we are pushing for to start recommissioning activities. Moving to the timeline, this is the high level view. This time, the critical part of the project continues to be through the processing plant, as mining operations are well advanced. A key event this summer will be collection of the CODESAB station to the power line. This will allow for electrification of the equipment in the plant, as well as the rope shovel in the pit. The Hydro One power line has been completed to site in the substation. It has made significant progress in the course. We are very much reliant on our workforce, and I'm a major employer in the region, so I want to tip my hat to our human resources team, ensuring the project is well stuffed up. We are only as good as our people, and I'm impressed with the team on the ground. With that, I will turn back to you, Renaud. Thank you. Thank you, Jerzy.

Earlier in the quarter, we reported as a result from the 2022 drill campaign, which successfully intersected mineralization to DeSoto and below, the current resource boundary of the deposit. Gosselin, with its main resources of 3.4 million indicated ounces and 1.7 and to half the debt and remains open and on strike and on debt. When you look at the coded life of mine, there's a step down in productions in the year 2030, 2033, which could be a logical fit to bring Gosselin into the mind. While there is still a lot into a future CODI life of mine. We believe we are in the early days of the CODI district and believe that CODI goal is not just a project, but the start of the mining camp with substantial upside to be ordered within our nearly 600 square kilometers land package. Now I will pass the call over to our CFO to walk us through the financial review.

Martin. Thank you, Renaud, and good morning, everyone. It was a busy quarter for the company, following the strategic announcements at the end of last year. Before we look at the earnings, cash flows, and liquidity picture, it is probably worth a moment to review the transactions and associated implications. Early in the first quarter, We still expect to receive an additional $9.8 million by the end of the second quarter related to the cash still held at site and related working capital adjustments. Subsequent to the quarter end, on April 26, we announced the closing sale of our Bamboo assets for pre-tax gross proceeds of $197.6 million. The closing of the other facets of this deal, including the assets in Guinea and Mali and are expected to close in the third quarter. The Sumitomo funding agreement announced at the end of last year began to take effect in the first quarter, with Sumitomo contributing $189 million, or a total $250 million, of the iron-gold funding obligations during the quarter. This effectively equated to a 7.5% transfer of interest in the project to Sumitomo. Subsequent to the quarter end, and as of As a result of their increased interest in the project, Sumitama contributed $7.1 million in incremental funding for project construction. Over the remaining construction timeline, Sumitama will outlay approximately $82.8 million for a total of $90 million of incremental expenditures based on their increased 10% exposure to construction costs. and we want to reinforce that it is ours and Sumitomo's intention for IAMGOLD to ultimately return to a 70-30 joint venture structure in the future. With regard to the accounting for the transaction, IAMGOLD will continue to account for 70% of the assets and liabilities of Coctail on our balance sheet, and the transferred interest will not be recognized as a sale due to the existence of the repurchase option. We have recognized a repurchase option liability that represents the amount that Sumitomo contributed on behalf of Ungold that is also equal to the amount that Ungold needs to pay Sumitomo to repurchase our transferred interest and eventually return to 70% interest in the unincorporated joint venture. And this is as of March 31st, 2023. After achieving commercial production, in our income statement and received 60.3% of the cash flows. Turning to the Q1 financials, revenues from continuing operations totaled $226.2 million from sales of 119,000 ounces at an average realized price of $1,893 per ounce. Adjusted EBITDA earnings per share of $0.05. Net cash flow in Q1 from operating activities was $28.1 million, and this includes investments in working capital related to the build-up of the stock market and the reduction in accounts payables. Net cash from investing activities for the first quarter was $106 million. Net cash used in financing activities for the first quarter after a $2.1 million adjustment to foreign exchange rate impacts on cash and cash equivalents was $64.4 million. This includes the repayment of the credit facility of $255 million, offset by proceeds received through the semi-term of funding arrangement of $196.1 million, of which $189 million related to the funding obligation, project interest. In terms of our financial position, we ended the quarter with $532.1 million in cash and cash equivalents and $257.3 million available under the credit facility. We note here that approximately $260 million of our cash and cash equivalents is held by Dakota UJV and ESACAN. As Dakota UJV requires its joint venture partners to fund, in advance, two months of future expenditures, and at ESACAN, the company uses dividends and intercompany loans to repatriate funds from its operations, and the timing of dividends is usually in the second and third quarter of every year. We typically hold and guide our investors to account for between $200 and $250 million of cash being held in our balance sheet for these normal course business purposes. As we discussed, we expect to see the Nambuc assets to close by Q3 this year for a total of $282 million of proceeds on a before-tax basis, and we are guiding the We received $165.7 million in cash, with the remaining $32 million expected by the early of six months and the closing of the remaining transactions. And we expect the remaining transactions to close during the third quarter. When we look at the funding picture for Cote, as we noted our client earlier, we estimate the remaining funding requirement by until to complete Cote of $460 to $535 million, with the project still on schedule, as outlined by Jersey. Based on the prevailing market conditions, which could impact project expenditures and operating cash flows, the company believes that its availability of liquidity at March 31, 2023, combined with the cash flow's wrong operations, assuming jumbo funding arrangements, and the expected proceeds from the sale of the bamboo assets that is sufficient to complete construction and wrap-up of the Kote Gold project, based on the current estimated cost and schedule. We continue to advance additional financing initiatives to strengthen our balance sheet and improve liquidity in order to place the company in a strong position to return to 70% interest in the Kote Gold project. Thank you very much.

Thank you, Martin. And I want to take a moment here to thank everyone on the Ionville team for the special thoughts for our construction team at Cotec, for the tireless efforts and dedication as we continue to position the company for success. This is a real exciting time for this company. With that, I will pass the call back to the operator for the Q&A portion of this call. Operator?

Thank you. We will now open the lines for questions. To join the question queue, you may press star then 1 on your telephone keypad to hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. Our first question is from Mike Parkin with National Bank. Please go ahead.

Hi guys, thanks for taking my questions. Switch back to Kote. Can you give us an idea of what the split is between mining overburden versus hard rock in the open pit?

Like currently? tell you that the overall strip ratio of the project is in the range of the two to one as we move forward but i don't have the numbers and the detail with me now what it comes to overburden versus the waste rock and that and our uh mining uh preparing but uh i'll follow up with you okay maybe just hold on just hold on maybe jersey has a more detail on that

We have really looking in terms of like, how are you progressing with the pit? Is it going as expected? Are you coming across, especially with spring breakup? Is there any kind of challenging parts of the pit or are you able to kind of, you know, stay in harder rock while things kind of dry up and then getting back into overburden? Any kind of color that you can share on that would be appreciated.

Sure. As you've seen from the picture, season. We have accumulated just shy

you know, with the early days and following freshers. And quite frankly, it looks extremely good. Very impressive to see those autonomous trucks operating. It really looks like a solid operation. So no, it looks very good.

Okay, that's great. And then we're finding a lot of companies are kind of reporting an easing of inflationary pressures, especially on diesel, but kind of commenting that price pressures on steel, concrete are stabilizing. Are you seeing any wins? Like obviously the weak Canadian dollar is helping you, but is there any wins that you're kind of seeing starting to to materialize as we move into 2023, where pricing is actually improving or stabilizing. That's giving you a bit of a tailwind.

Good morning, Mike. It's Martin. We are seeing inflationary pressures easing, and certain costs are in line with what we experienced in Q4, but not necessarily lowering. We are seeing price pressures on explosives at the mine, the cost of finite as well as grinding media, which is related to steel, in line with what other people have seen.

On the project, we have 100% procurement. There are inflationary pressures on the labor market driven both by the wage raises and also by the tightness of the market. And I think that's where the biggest problems usually will be right now.

Okay. And then just switching gears over to Epic, can you give us an idea of what your inventory capacity is there? How often do you need to, at a minimum, bring in delivery of fuel, and if you had to kind of lock down due to a potential security heightening situation there, could you kind of operate on an isolated basis for a month to get through any kind of challenging surrounding issues?

Yeah, no, thanks for that. As I mentioned, Bruno is with us in the room, so please, Bruno, come in on that.

Yes, thank you, Renaud. For the fuel inventory, we've been seeing some tightness in terms of supply chain. However, in April, we were able to resume more convoys to the site, and we were able to also replenish our stocks. So we have four days of war, and we're able now to operate close to full capacity for now. Obviously, when we have difficulty to get and secure these stocks, those get depleted and we have to slow down the mining or mining activities while prioritizing or milling activities. And we have enough stockpiles close to the nil to be able to consume coal production.

Okay. Thanks. That's it for me. Thank you, Mark.

The next question is from Anita Thoney with CIBC World Markets. Please go ahead.

Good morning, everyone. And firstly, Renaud, congratulations officially on your appointment as CEO at IAM Gold. And then my first question, tailings dam one and two. I'm just looking at the chart at Cote, and it seems like those two particular aspects as well as a couple of the power projects are a little bit delayed. Can you talk about what the key, I guess, key items that you need to get those back on track? I would assume it's the rope shovel for the tailings dam, and once that's assembled, you can get moving a little bit more on the tailings.

Well, thank you, Anita, and thanks for your kind words. And I'll let Jersey comment more on the critical pathway. The power is under control.

The connection to the power grid in August is actually not on a critical path. The substation commissioning, as I said in my opening notes, was scheduled to start in early Q2. It did start as planned. So we don't see that as a risk piece. The TMF itself defocused on this area and pushed harder the process plant, the critical patterns to the process plant current, which is the dry section with crushing and then grinding and refines.

Okay, so the TMF is not on the critical path, but I mean, how much capacity would you have by the end of this year for the Taylor Dam?

Talking about the capacities, After this year, we'll be planning, you know, for execution of our raise next year. And we're going to be operating like this on a phase-by-phase basis.

Okay, for the next year, okay. And, sorry, remind me what kind of a tailings end is it, downstream or centerline?

The current construction is downstream. The next few raises are centerline.

So next year's are centerlined. All right, and then the second question on ethocane. I'm just trying to understand the sort of overall cost structure. This quarter you adjusted out some supply chain, I guess, fuel disruption costs. So when you're guiding to what you're guiding to right now, like I'm trying to understand, it's going to go up over the next couple of quarters, I think, is what I saw in the commentary. Okay. And then you're also saying that it will be at the higher end of what you guided to this quarter you came in at the lower end. So I guess I just want a little bit more color about all of these moving parts with, you know, where we should be on our, like, on our costs for Ethicane. I just am trying to understand, would that, like, be prior to, like, the overall guidance, would that be prior to adjusting out fuel disruption costs, or is that including the fuel disruption costs?

Yeah, so... The first comment on this is obviously when you look at the current cost structure and you look at the capital ways, the capital component that was not achieved, and if you would do the simple math and additional capital, you know, but not to forget that even though the operation is not at 100%, there is a significant part of the fixed costs that are still there. So it's not a direct math. So as we advance and we bring back the operations to its full capacity, there will be an adjustment here on the ratio fixed variable. Yes, there is a chance that by the end of the year, we might be more like towards the high end of the guidance, but it's not like a direct map, basically. So we're confident that our unit cost, for instance, you know, on a per ton basis would lower as a Okay, thank you.

I'll step back in the queue for any questions. Thank you very much.

Thanks.

Once again, if you have a question, please press star then 1. The next question is from Farouk Hamid with Raymond James. Please go ahead.

Hi, good morning. My question really was I just wanted to, you know, maybe contextualize and understand the additional Sumitomo funding that you had at the beginning of the year that's now reached $250 million and will, I guess, by the end of this year, reach $340 million. So I'm just trying to understand kind of the cost of this funding. So based on the fee that you'll be paying, which is the SOFR plus 4%, Does that work out to basically somewhere in the kind of high 8% range for the fee that you're paying on that funding? And so by the end of the year, are we looking at something like $30 million a year in funding costs for that Sumitomo funding? That's the first part of the question.

Good morning, Farouk. So, yes, the funding that they've made, the $250 million, is the amount that then reduces our interest in the project. So that is now complete. So the 60.3 ownership won't change further as we continue on. Because they now are 9.7% extra in the project, they are actually contributing more to the project than what it was before. The reason we mention it is this approximate incremental contribution by them of $90 million is important to understand position, because on a 70% basis, the UJP required funding of $800 to $875 million, and Sumitomo is effectively funding $340 of that. From a cost perspective, the charge would be on the $340 million. Based on SOPR, it's between 8% and 9%. that to be about $13 million, as you said, by the end of the year.

Okay. Okay. So, thanks. That's helpful. And then, so that's – the next question was really, what's the frequency of the payment? Like, will you have to pay that on a quarterly basis? Or kind of what's the cadence of how you'll be paying those fees?

Okay. So, during this year, the cost will be included in the repurchase price. So we have to pay $340 plus the repurchase option fee that accrues during 2023. And then starting in next year, we'll be paying the option fee in cash. But the fee for 2023 will only get paid once iGold exercises the repurchase option.

Okay. I see. So you're saying the 2023 fee will only get repaid when I'm going to exercise the repurchase option. But 2024 through 2026, that'll be an annual payment?

Correct on the 23 piece. In 24, it will be a quarterly payment.

On a quarterly basis. And that fee will basically be accrued and paid until you exercise the right to repurchase, correct? Yes.

And also, this is not seen as interest. So it does not form part of our cabinet calculations.

Oh, it doesn't. Okay. And so then in terms of your ability to repay or your desire to kind of repurchase that 9.7% that you mentioned at the beginning of the call that it's your intent to repurchase it, I would assume that this you know, source of financing is probably one of the higher costs of your capital structure. So when you talk about other financing alternatives, would you look at other financing alternatives to help finance the repurchase sooner rather than later?

So when we basing it based on that, and then that is kind of what's driving the economics of this deal as well, because once Sumitama retains the additional 9.7% of project economics going forward, repurchasing that makes the deal more cost-effective for us.

Okay. All right. Well, that's understood. Thanks very much.

The next question is from Jackie Prisbelowski with BMO Capital Markets. Please go ahead. Thanks very much.

I think I'll start by following up on Farouk's question. On the Sumitomo financing arrangement, I know you mentioned in the release last night and then again in your remarks that you're looking for other options to shore up your liquidity or maybe repay that. sooner rather than later. Can you talk a little bit about what those options might look like in terms of where you see other sources of potential funding today?

So, Jackie, we're looking at a broad spectrum of options. And when we analyze our options, we consider that the five years of grotesque production is a lot higher than the life of mine production profile with significant cash flows coming from that period. So when we look at options, we would prefer something that helps us to get back to 70% interest, but that we can reverse, something that is less permanent in nature because COTA can repay high levels of cash flow. So we don't necessarily want to further encumber the asset with permanent sub-transactions.

Okay, thank you. And maybe a similar question. On Ezekan, is there any thought at this point to selling Ezekan in your portfolio? And I recognize that would probably not be possible today until CoJ is up and running. But once CoJ is up and running, do you think you will view Ezekan as core to your operations still at that point?

I can say that any asset that produces this amount of ounces of that kind of margin in a free cash flow is absolutely welcome. To be very frank, what we're really busy now is really looking at all kinds of alternatives to extend the life of mine. You know, we have to look at the business providing gold today as two megamind capacities. future is going to bring to us. You know, as we advance in time, as we continue to design, you know, this company to become a long life company, you know, and high free cash flow, high margin and so forth, we'll see. I don't have a crystal ball on everything, but I can assure you that the focus of the company right now is to make all our portfolio working at its full capacity and potential.

Thanks, and congrats on a great quarter, and, Renaud, congrats on your new appointment.

Thank you so much, and all the best to you as well.

Thank you. The next question is from Tanya Jukoskinek with Scotiabank. Please go ahead.

Good morning, everyone, and, Renaud, again, my congratulations on your new appointment, and I look forward to working with you. I'm sorry, I just got on the call as I was stuck on another call this morning. Maybe just circling back to a couple of things. One is just on this additional source of funding. So what I heard from the previous question is that you didn't want to impair the asset any further, Cote, within those first five years because of the significantly higher production coming out. So can I assume from that that an additional royalty and or stream on that asset is not something you're looking at? And then I'm just trying to understand, like, the priorities of your additional funding options. Would it be, you know, selling of assets, maybe Westwood and or Ethicam first, and then it would be equity, and then it would be streams? I'm just trying to understand priorities of your options and what specifically at the auctions would be?

A wide range of possibilities that you're giving me. First and foremost, thank you for your kind words. And as Martin was highlighting, you know, Cote is going to be the cornerstone asset of this company moving forward. And the two priorities, obviously, is first, you know, eventually being in possibility and the positions to get back to our 70%. on top of the curve. So this is not really what we see for this asset. Now how exactly are we going to be capable over time to address the additional will position us for the long term. And that's what I can say at this stage. I think the focus of this company is to make sure that as we move forward, we keep improving the product as we move forward and not at the early stage being in a position to maintain or to position this asset with anything that remains in time. Martin, if you want to add anything to this.

I think that is exactly the thing. So we look at our our capital structure and future cash flows very closely when we make this decision.

Okay, so I guess I get from that that streams and royalties would be like the lowest down the pecking order of options and equity and asset sales would be higher. Would that be a fair statement?

We don't really want to say exactly, but yes, if we look at... Permanency speaks in our capital structure. Debt is the least permanent. And then as you look at things like royalties, if you can't buy it back, that would make it more permanent.

Okay. That's great. Thank you. And then maybe, Renaud, and I apologize I was late on the call again. Maybe if you could just, you know, and I know you've just been on the roll for a month and a half or so. Maybe if you could just outline sort of your three key strategic focuses for IAM goals for, let's say, the next few months or the rest of 2023, just so that I can try and understand as you look at the year, what are your three priorities?

Well, the first one is, of course, So, completing the construction in a way that would allow together with the operating readiness of that is what we really is the key on the business side of this company as a priority number one. But equal to that, when you're looking at its accounting, for instance, you know, like the asset, you know, returning to his 100% capacity, generating the free cash flow that he was planned to. is how we look at the ground control, how we look at the seismicity We're good at that. But this is a cornerstone asset. I wouldn't tell our stakeholders and shareholders that we're not going to be looking at an alternative to how we could improve our financial flexibility and eventually position this company for a successful return to the 70%. So this is all And my role is to make sure that we achieve all of them and working and supporting the team. I hope this answers your question.

Great. It gave me some clarity on it. Thank you very much. And, again, congratulations and welcome. Thank you.

Thank you.

This concludes the time allocated for questions on today's call. I will now hand the call back over to Graham Jennings for closing remarks.

Thank you very much, Operator. Thank you, everyone, for joining the call this morning. As always, should you have any additional questions, please reach out to Manon or myself. With that, we'll end the call. Be safe and have a great day.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.