Triple Flag Precious Metals Corp. Common Shares

Good morning. My name is Joseph and I will be your conference operator today. At this time, I would like to welcome everyone to the Triple Flag Precious Metals Quarter One 2022 results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. CEO, Sean Osmar, you may begin your conference.

Thank you very much. Hello, everyone, and thank you for joining us to discuss Triple Flag's first quarter results. Today, I'm joined by our CFO, Sheldon Vanderkooy, our Vice President of Evaluations and IR, James Dendle, our Vice President of Talent and ESG, Katie Board, and our Vice President of Finance, Eban Bari. I'm pleased to report another solid quarter during which our business benefited from continued support of commodity prices, underlying portfolio quality, and the embedded resilience associated with asset diversification and insulation from operating and capital cost inflation. We're pleased to report that we met our pre-release sales guidance in the first quarter, having achieved 20,113 ounces sold. resulting in a 7% increase in revenue year-over-year to US$37.8 million, adjusted EBITDA of US$30.5 million and earnings of US$0.10 per share. The market and pricing backdrop has been volatile during this period with the competing forces of inflation, central bank action, ongoing COVID-related supply-demand impacts and geopolitical instability with the war in Ukraine. Yet our margins have remained steady, our cash balance continues to grow, and our financial results have proven to be resilient. The business is continuing to deliver robust organic growth. Production across the portfolio in the first quarter was strong and in line with expectations. Over the quarter, the pipeline for new deals has remained very active. Triple Flag acquired a royalty on a highly prospective high self-adhesion epithermal gold deposit in Chile called Sophia for $5 million, a small tuck in addition to our portfolio done on a bilateral basis. We also announced earlier in the quarter the acquisition of a royalty on the Beaufort mine in Quebec. Our latest deal announcement, subsequent to quarter end, is the proposed precious metal stream and gross revenue royalty on the Prisca Copper Zinc Project in South Africa, another bilateral deal that we have exclusivity on. Prisca is a large-scale base metals DMF deposit operated by Orion Minerals, which is listed on the ASX and the JSE, with an extremely large and prospective land package. We are really pleased to achieve this important step towards providing Orion with funding support for a very exciting base metals mine development. Overall, we continue to demonstrate discipline in our deal-making approach with a focus on high-quality accretive transactions and an emphasis on cultivating direct bilateral deal opportunities. Our dividend yield remains competitive, with our board declaring a dividend of 4.75 US cents for the quarter to be paid in June. In these unprecedented times of both climate and social change, Triple Flag is committed to responsible mining, providing essential metals for renewable energies through our work with responsible mine operators, primarily via precious metal by-product stream financing, and supporting the communities in which they work. During the quarter, we also donated $100,000 in support to Ukrainian humanitarian relief to assist the most vulnerable victims of the senseless conflict. The portfolio is delivering organic growth, both in the short term and the medium to long term. Beritica's expansion continues to 4,000 tons per day this year, and our ramp-up assets are advancing towards nameplate capacity. Step Gold resumed leaching in March and they're advancing the Phase 2 expansion. James and I were fortunate to visit North Park a few weeks ago with COVID-related travel restrictions finally easing. The trip underscored the quality of the management team combined with the incredible surface and underground infrastructure in place at North Park and the significant optionality associated with resource conversion, the discovery of new porphyry deposits and potential to expand the capacity of the mine. In a world seeking copper to enable our decarbonization and climate change imperatives, North Park is ideally placed for a long and prosperous future ahead of it that we are proud to be a part of via our gold and silver byproduct streams and our community support commitments. I'll now turn it over to Sheldon to discuss our financials for Q1 2022.

Thank you, Sean. GEOs and Q1 were broadly in line with the same quarter in the prior year. Increasing by 2% to 20,113. Gold stream volumes increased by 29%, driven primarily by increased deliveries from North Parks, and gold royalties were consistent with the prior year. Silver stream volumes decreased year over year, but consistent with our expectations. Q1 results as a whole were consistent with our 2022 guidance of 90,000 to 95,000 GEOs, which assumed a gold-silver ratio of 77. The markets have experienced significant volatility lately, and in Q1 as a whole, we realized the gold-silver ratio of 78 times. To illustrate the impact of the gold-silver ratio on GEOs, GEOs for the quarter would have been approximately 1,000 ounces higher if the gold-silver ratio had remained consistent with the same period last year. Nonetheless, we had a good start to the year with strong performances at North Parks, Fosterville, Bredica, and RB Platt in particular. I'll now turn to the next slide. We've seen increasing financial market volatility as the markets grapple with inflation and rising interest rates. We are seeing input cost pressures across the economy which can squeeze margins. The streaming and royalty model is a fantastic lower risk model ideally suited to today's environment. We have top line revenue exposure benefiting from top line revenue inflation Thank you, Sheldon. The portfolio delivered strong financial results during Q1. Revenue was up 7% over Q1 2021 to $37.8 million.

Net earnings were up 83% year-over-year, and adjusted net earnings were up 12% for the same period. Adjusted EBITDA was 1% higher to $30.5 million. We generated $26 million worth of operating cash flow. It's 9% decrease year-over-year, and the decrease was largely due to differences in working capital changes as a result of timing of bonus payments. We also maintain strong, consistent asset margins at 92%. I will turn over to the next slide. Our pure play precious metals portfolio is well diversified with 93% of the revenue from precious metals with over a third of our revenue from Australia and 87% of our revenue from the Americas and Australia, considered stable mining jurisdiction. I will turn over to the next slide. We finished the quarter with $58 million worth of cash on the balance sheet, no debt, an available credit facility of $600 million including the accordion. All of this provides us ample liquidity for accretive new deals as well as our dividend program. I will now turn over to James Dendle, Vice President of Valuations and IR.

Thanks, Eban. This page sets out our GEO growth from inception as well as our 5 and 10 year annual GEO outlook. You may recall that we issued our inaugural 5 and 10 year outlook in Q3 of 2021, indicating 105,000 GEOs for both the 5 and 10 year timeframes, highlighting the embedded growth within our portfolio and the long portfolio duration. We're pleased to be able to extend this outlook by year. and increased the outlook in the five-year timeframe from 105,000 GEOs to 110,000 GEOs. The majority of the production expected over the five- and ten-year outlook is derived from mines that are currently in production and supported by mineral reserve estimates. The long-term production outlook requires minimal capital expenditures by the asset operators, and a number of the development projects have been permitted, providing a low-risk outlook. The long-term production outlook requires no further funding from Triple Flag, with the exception of a $45 million stage payment with respect to commence upon a construction decision. We're continually looking to increase and extend this outlook through disciplined acquisitions that fit our technical, commercial, ESG, and returns criteria. In this area, I'll provide a brief overview of the Priuska opportunity that Sean mentioned earlier. Subsequent to the call for ends, entered into a non-binding term sheet for a precious metals stream and royalty on the Prisco project. As Sean mentioned, Prisco is a copper-zinc project operated by ASX and JSC listed arrived minerals and located in the northern Cape of South Africa. It's a brownfields project that was operated by Anglovalve from 1971 to 1991. It has significant underground infrastructure, a very solid resource base, and significant exploration potential across a stream area of over 4,000 square kilometres. This feasibility study released in 2020 contemplates a 12-year life of mine with significant opportunity to extend this and all major permits are in place. Once in production, we expect an average annual stream GEOs of around 12,000 per year. Turning over, this page provides an overview of the stream and the asset. The royalty in the stream are subject to Orion Minerals raising 20 million Australian dollars and completing an updated feasibility study. We expect definitive documents to be finalized in the third quarter of this year and we'll provide more information on this asset later in the year. This is a deal that we've been working on for some time and it was originated on a bilateral basis through our networks. Turning to our key assets, the portfolio is performing well and consistent with our 2022 guidance. At North Park, the E26 Lift 1 North Cave is ramping up to plan and record plant throughputs were achieved in March. I'll be glad for the solid quarter with tons hoisted up 11% and steel drifters expected to reach nameplate capacity in 2022. Fosterville outperformed during the quarter due to higher than expected grades. Based on a likely sequence of mining of ultra-high-grade soaps, Fosterville anticipates having lower gold production in the next two quarters, with the fourth quarter being the strongest of the year. Step Gold recommenced leaching at ATO during the quarter, and we received deliveries under the stream subsequently after the quarter end. Reagent shipments continued uninterrupted in April, and the process of restocking reagent storage facilities is ongoing. Veritica made excellent Thank you, James.

As always, we strive to invest in responsible minds and projects that protect worker health, safety, and the environment, where benefits accrue to local communities and a broad range of stakeholders. As Sean mentioned, in light of the attack on Ukraine, Triple Flag donated $100,000 Canadian dollars to the Canadian Red Cross in support of the Ukrainian humanitarian relief effort to assist those most in need during this horrific crisis. The Triple Flag team also participated in packing supplies in response to the relief effort. Triple Flag stands with the people of Ukraine. At North Park, four local students from doorstep communities have been selected to receive $5,000 Australian dollars One Time Bursaries to support post-secondary degrees. Each of these recipients has expressed a desire to return to rural, remote areas of Australia upon completion of their degrees. While in Australia, our team participated in the unveiling of four grandstands and met some of the impressive recipients of Triple Flag's scholarship program and could recognize the direct benefits of our activities on the Parks and Forbs communities. At RB Platt, Triple Flag is committed to financially supporting seven new students in pursuing mining-related post-secondary engineering degrees. This is in addition to the eight students Triple Flag continues to support from 2021. Contributing to community and sector development through our global scholarship programs is a priority for our organization and we'll continue to seek out ways to complement our mining partners' activities in these areas. On March 8th, International Women's Day, Triple Flag again sponsored a table and invited women from within our network to attend the Women for Women's College Hospital Lunch, a fundraising event which raised over $550,000 Canadian dollars dedicated to breaking down barriers to health care for all women. We have since seen some of our direct peers adopting various initiatives we have undertaken and take that as a sign that we're on the right path. It is our goal to continue to be leaders in this space and we continually seek out opportunities for further advancement. Since inception, we have remained a carbon neutral company and go a step further by offsetting the attributable share of emissions from our mine investment, which we believe is still unique in our industry. We look forward to sharing more of our ESG initiatives in our 2021 Sustainability Report, which will be published next month.

Thank you, Katie. As the metrics on this slide demonstrate, our key metrics stack up very favorably to the best in the sector. We have 80 assets over the last 12 months, so our EBITDA was 124 million US dollars. and provides investors with a compelling dividend yield and organic growth. We're solidly positioned as an emerging senior streaming and royalty company. In summary, we delivered solid financials in Q1 against a volatile market backdrop, highlighting the quality of our portfolio. Over the quarter, the pipeline for new deals remained very active. We acquired two new royalties and entered into exclusive non-binding terms in May for a precious metal stream and royalty on the Prisca project in South Africa. We continue to successfully demonstrate our ability to secure exclusive bilateral deal opportunities that offer favorable risk-reward attributes for our investors. Our focus remains on disciplined deal execution and value creation, exercising patience while pursuing sensible and accretive deals. With nearly $700 million in available liquidity, we have ample means to transact on the larger, higher-quality transactions in our deal pipeline. As inflation and supply chain disruption impact mining sector margins, our faithful application of the royalty and streaming business model to our investments, coupled with the diversified and resilient nature of a high-quality portfolio, largely insulates our investors from the direct effects of these corrosive forces. Our dividend remains robust and provides a competitive yield. Our business is producing strong cash flows, which are positioned to increase as the fully funded embedded growth is delivered across a number of assets. Having celebrated the six-year anniversary of our founding in late April and approaching the one-year anniversary of Triple Flag's IPO, I'm pleased with the solid performance we've delivered so far and look forward to continuing to deliver strong financial results as well as disciplined growth and value for our investors. We sincerely appreciate the support and trust of our stakeholders and we look forward to providing further updates soon. Thank you. Operator, with that, if we can turn to Q&A, we're happy to answer any questions.

At this time, I'd like to remind everyone in order to ask a question, press star and then the number one on your telephone keypad. We'll pause for just a moment to compile a Q&A roster. Your first question comes from the line of Tanya and your line is now open.

Great. Good morning everybody. I'm so sorry I was just caught up on another call so I did miss you talking about the deal you announced last night. Can I just and I just quickly looked at the slide on the presentation. Can I just ask maybe you can go through what was the attractiveness of this asset for you and Orion and Maybe highlight what you see as the risks in the deal and what you see as a timeline of getting the deal done and the key catalysts you need to see in a mind plan for it to go ahead.

Good morning and thanks. I appreciate it. I know there's some congested timelines with these presentations. So I'll start and I'll ask James to comment and perhaps any and Sheldon. Look, the first thing is, I think you should recognize probably by now that we've obviously been, I think, the first in this industry to successfully do a precious metals stream in the region with RB Platt. The first filter there in that region is always the ESG credentials, how they've sorted out their economic empowerment, the host community relations, and those are things that I think before any technical merits even contemplated that we put that to the test. We started this over a year ago. We put a lot of ideas in front of miners all over the world. And I'll give you the context because I think it points to two things. One, I think this form of funding, we've said it before, but I think we're seeing it in real time, is becoming increasingly accepted as a sensible alternative for miners, particularly with base metal miners on polymetallics like this where there's a natural arbitrage. So this term sheet originally, I think, was somewhat dismissed. And it was a great example where our mining partner at RV Platts, it's a small community, and they strongly advocated actually unbeknownst to us for doing business with us and also talked about how we supported their local communities during COVID. And that was the difference for them to come back to us and say, actually, we're really interested in exploring this while we consider other alternatives. We've engaged for nearly a year, and the main reason is the same thing, whether it's in this region or any other part of the world. You look at the history of mining project delivery, whether it's majors, and pick your name, it turns out the data over the last 10 years, people seem to think big mining companies are better at project execution, but the data doesn't support that. In fact, the percentage and the absolute dollar numbers are higher typically when you actually look at the outcomes. and the time deliveries in particular tend to be longer. So the reason for our very patient approach here has really been focusing on providing them with feedback, not on the equivalence of the 43-101 studies and what looks good on the spreadsheet or a technical study, but on the execution plans. And you'll see the way that we structured this so far is very much with a high degree of optionality in our favor, strong security. But, you know, I'll ask James to comment in a minute. The core thing in this area, there is great mineralization, renewed interest in the region, a massive land package, a lot of fund capital, the know-how and the ability in the region to be able to execute. And, you know, I think I'll turn it over to James from there and just see what you want to say.

Yeah, I think Sean covered some of the main points there. I mean, look, it's a past producing mine. It's got a very extensive... Production History, so the ore is a known quantity from a processing point of view, but also from a mining and rock mechanics and geology point of view, so it's a very well understood ore body. As Sean mentioned, the stream area is large. Our stream actually, as contemplated, is over 4,000 square kilometres wide. and it's a very big VMS system and really this is the focus of that system and there's been kind of one major discovery in the area so we think there's tremendous opportunity to discover additional parts of that very large system as you know they're seldom orphans. So I think that's very compelling. The infrastructure is good, there are two shafts in place and it's a pretty simple processing flow sheet. You know, to us it looks like a very compelling opportunity for all those reasons.

Antonio, the high level, you've seen the numbers, you know, once in production, and I think the rough timelines, somewhere like two and a half to three years, and we'll see how the studies come through. But, you know, it's like 12,000 GEOs a year, obviously pretty big margins. I think on our internal rough numbers, it's probably 6-7% of our NAV. And you can think of it on consensus, not spot numbers in the low to mid-teens. for both those instruments. And you know what the metrics have looked like in the space on single asset development projects of late. That hasn't been a very appealing deployment of capital for us. So we like the optionality, we like the assets, and the optionality is in our favor.

And I should just, the other part of your question, Tanya, is on the studies. The company expects to produce an updated feasibility study later in the year. We'll be looking for a very detailed build-up of execution really exactly how the project's going to be implemented from feasibility to construction. So that will be one of the focal points for our analysis when that comes out. And obviously with the way capital costs have moved, recently we'll be paying close scrutiny to the movement in costs and operating costs for that matter. So those are some of the focal points we'll be working through later in the year.

Okay, but I'm interested in the mine plan. So, James, because one of the things that you have is you can walk away if you don't like the mine plan. So, I'm trying to understand what are the key aspects that you need to see in the mine plan. So, you need to have a good comfort on execution, it appears. You need to have a comfort that the capital and operating costs are reasonable. and the time schedule is reasonable. Is there anything else I'm missing that you're going to need to see that meets your criteria to go ahead on this deal?

I think the key thing, Tanya, is firstly, we don't anticipate major changes from what is contemplated in the 2020 feasibility study. What we will be looking at very closely is the Things like the development rate productivities as the mine ramps up into production. So it's really confirming the development rates and the achievability of those rates in the first couple of years as they look to build skills and capacity at the operation. It's not so much that we're looking for is this what it looks like going forward versus the 2020 study. It's really confirming achievability and the granularity of execution Part of what's already been put into public domain.

Antonio, so that's a common theme on every asset we're looking at in a pipeline pretty much everywhere. Development rates we see very often in the sector are We're very generous in the assumptions and our primary focus as a risk mitigation is making sure these things have sufficient liquidity to get through even if there's a risk on timeline ultimately these streams can be very lucrative as long as obviously they deliver the mine. So those are the focal points for us and that's the reason we've been very patient on this.

Okay, and then just also just, you know, so we've got the study coming mid-year, you're going to be looking at these aspects to see whether it fits your criteria on the mine plan. What about the risk of financing, you know, the operator has to obviously finance this, you know, what's the timeline for that and then ultimately what's the risk in that and then ultimately closing this deal?

Yeah, so the first point on the royalty has really been making sure, and you'll see that's conditional on raising another 20 that's in their park. We want to make sure that they've got sufficient funds to do their study, start dewatering, and really progress this at a very sensible rate now. So we've taken that staged approach. I mean, we're senior secured. We structurally will be very well positioned on that. and I think for us we're actually quite happy to be patient if the timeline goes along. We want to make sure that at a point where we make a decision it is the right time. We know they've got a – I can't go into details on the syndicate and others but we've been privy to – they've been doing a lot of work for quite some time on other alternatives and it's going to be up to that team to finalize that. We've got a lot of experience working with different capital providers as you know. and from what we see, I think, you know, we know they've got a good project and they've had other alternatives. So, Sheldon, I don't know if there's something you want to add to that.

I think that covers it very well.

Okay, so am I looking at potential closing this year on this deal or do we have a timing? Everything.

That would be our expectation. I think that's, of course, subject to, you know, the markets at this moment as much as we do. So, but yeah, they're obviously doing the work in order to sort of work through that sort of timeframe.

Yeah, and Tonya, they've been out there with, you know, a Q3 for definitive documentation. So we're really pleased we have these, like, these agreed terms. You know, the lawyers are now engaged on drafting the definitive documentation. And while this term sheets are non-binding, we do have exclusivity and We don't foresee any difficulties in executing dependent agreements.

Okay. And Sheldon, then I have you on. I just wanted to ask, coming back to this global minimum tax, which we ask on every call, and again, it's in the Canadian budget right now, so I just wanted to have your latest views on how you expect the proposal to impact you at all, if successfully implemented, and do you think you're exempt from it because of your revenue thresholds?

Yeah, so there's no change since our year-end call, Tanya, that I've seen come out. I think the budget actually had already come out at that point. The exemption, I mean, we did note that the revenue threshold, we would fall below that and be comfortable below that. So I think that would be obviously very nice. And that seems to be within the spirit of the rules where they're not actually targeting entities of our size. So that would make things very easy. And again, even if we are subject to it when the details rule comes out, the impact on the NAV is pretty muted. I think we're talking about 4% range.

Okay. Great. Thank you. I'll leave it to someone else to ask questions.

Thanks, Tanya.

Your next question comes from the line of James Degel. Your line is open.

Thanks, Aubrey. So just on the pre-skid, just carrying on from maybe some of Tim's questions, which I think she covered most of it, but it seems to be a pretty high return, I guess, owing to the bilateral discussions that you guys were engaged in at this stage of the project. Is this what we're expecting to see, I think, going forward? Obviously, a lot of inflationary pressures, new project development, and there's not a lot of kind of tier one opportunities Operic is looking to monetize streams. Is this kind of the trade-off you guys are noticing going forward with higher returns with maybe taking on a bit more counterparty risk, if you can call it that?

Yeah, I guess that's one way of characterizing it. I think if you look at the deals that were done in the Canadian space just in the last six months, those I would characterize as maybe tier two, three single asset development stage assets on extremely skinny returns. You've seen the execution track record in the North American market. So I don't think people should conflate a jurisdictional piece with, you know, call it execution risk. That's the reason we're very deliberate on this. And I think we've shown in our pipeline, particularly actually outside of North America, we've been successful in securing streams which have been enabling to particularly polymetallics. We've worked in those sectors. where it's enabled those guys to bring projects online, IPO and do a host of things and generate decent returns. So we will continue to look at everything on its merits. I'd say most of the stuff in our pipeline at the moment is in fact more North American or America-centric for what that's worth and some return potentials are higher and some are lower. I don't know if there's anything else you guys would add but I wouldn't We don't have the luxury of being able to very nicely forecast both the cadence and the reliability of what that deal flow would look like. We are seeing a lot of activity, and some of them are quite large at the moment.

And then just in terms of the jurisdiction where this will be, I guess where this will reside from a tax perspective, has there been a change in strategy because of the global minimum tax rate discussion, or will this be, you know, Have this in Canada or sit in your points of city area like every other stream?

Hi, Shane. It's Sheldon. I'll take this one. This is an international royalty, so it would be in our Bermuda entity. We're quite comfortable with the structure, and we think it works quite well. Of course, we do have an eye to potential global minimum tax when we're entering into these.

Perfect. Let me just last one real quickly on the production, I guess, in the near-term guidance. Obviously, ATO has got the reagents sorted out. You said the North Parks and Veritica expansions were kind of tracking ahead of schedule. Just get a sense, I mean, roughly what level of conservatism you've kind of baked in the near-term guidance with respect to operator guidance. I mean, certainly a couple of these assets are actually tracking fairly well compared to TRS. And so I would guess some challenges, but if you can get a sense of what level of conservatism you have on kind of some of those assets that are ramping up in the near term.

Yeah, it's always... I think the only thing, Shane, which we've sort of expressed before is we have a general posture on ramping assets where I'd say we don't tend to take

Thank you very much. Four and five is a good bet to have some degree of conservatism in there. The only thing I'd say is a general observation with the followers of the sector right now. It's amazing to me that people following the sector will ascribe the same risk view on assets that are very often unfunded, don't even have a path to production. Some cases are unpermitted. and they'll apply the same multiple to business which is either really in production and ramping or is fully funded and has a pathway to cash flow on the basis of kind of, let's say, a fictional 43-101. So, you know, it's a bit of a soapbox thing, but I'm seeing that across the sector and it makes no sense. We have some applying the same multiple to us as groups with a million dollars of cash flow and almost all their mayors tied up in assets that have no committing or need a path to production. So there's a severe disconnect, I believe, in how people are looking at risk and returns at the moment in the sector. That's all from you guys. Thanks.

Thank you. Thank you.

Your next call comes from the line of Greg Barnes. Your line is open.

Thank you. Sean, I want to go back to Prisca again. I haven't had a chance to review the 2023. Bankable Feasibility Studies. What kind of capex are they looking at to get this thing up and running? Do they need to build a mill? And your funding is, what is it, $87 million in the U.S.? How much total funding do they require?

Thanks, Greg. I'm going to ask James just to, he's got some of the material in front of us now, and while he's doing that, just preface it, you'll know that For us, ordinarily, we would only announce on mining terms. Now, we've got exclusivity and we've got this to a point, and this has really been triggered more by the counterparty with investors and things on there as part of their overall funding approach. But, yeah, do you want to comment, James?

Yeah, sure, Greg. So, you know, there are shafts in place and the shaft bottom infrastructure is in place. The mine needs to be dewatered in order to access that infrastructure. But the engineering evaluations of that infrastructure are positive. They've done camera surveys and that sort of thing. So there is already quite a lot done in terms of earthworks and physical in-ground infrastructure. A lot of the plant property was taken away when the mine was closed down and rehabilitated. So there is, you know, mail workshops, offices and all that sort of attendant infrastructure that the company will have to build. The 2020 feasibility study estimated project startup capital at 373 million Australian, which at the time was about 4.1 billion Rand. And the exchange rate of the Rand exchange rate is about the same as it was in 2020, with sustaining capital of about 137 million Australian. So that's obviously a slightly stale number, and we'll see where the update shakes out, but that was the 2020 figure. And I think Orion has made some progress in locking in some of those components in any case, but again, we'll be looking closely at the update later in the year.

And Greg, part of getting to this point is also site visits have been conducted, so it's not just desktop, for example, at this stage.

So you're likely two to three years away from production, I would imagine.

Yeah, I mean, again, in the feasibility study, the company estimated 32 months from basically early work through to production. One of the objectives they're studying in the update is the opportunity to bring cash flow for production earlier. from the extraction of smoke and pit mining areas. So again, we'll see that. But that's kind of the ballpark that we're operating on at the moment. Obviously, they have to get their funding sorted out in order to start that process. But the royalty payment that we've done will help with some of those early works.

Okay, that's helpful. Thank you. Thanks, Greg.

There are no further questions at this time. CEO Sean Osmar, I turn the call back over to you.

Thank you. Thanks very much for the questions. Thank you for your time. I know it's a busy time of year for all of you. We're pleased to get another quarter away with strong results. We look forward to more to come. Thanks, everyone. Enjoy the rest of your day.

This concludes today's conference call You may now disconnect