Coeur Mining Inc (CDE) 2006 Q4 法說會逐字稿

Good day, everyone, and welcome to today's Coeur d'Alene Mines corporation fourth quarter earnings call. Just as a reminder, this call is being recorded. And at the time I would like to turn the call over to Mr. Scott Lamb. Please go ahead, sir.

Thanks. Good day, everyone. I'm Scott lamb, Vice President of Investor Relations for Coeur and thanks for joining us on the call to discuss our results for the fourth quarter and full-year of 2006. In accordance with our standard practice, this call is also being broadcast live on the Internet through our Web site, Coeur.com, where we have also posted the slides that accompany our prepared remarks today. A telephonic replay of the call will be available for about a week afterwards. Today's presenters include Dennis Wheeler, Chairman, President, and Chief Executive Officer, Jim Sabala, Executive VP and Chief Financial Officer, Don Birak, Senior VP of Exploration, and Harry Cougher, Senior VP of North American Operations. Before we start, I need to tell you that any forward-looking statements made today by management come under securities legislation in the United States and Canada, and involve a number of risks that could cause actual results to differ from projections. With that, I will turn the call over to Dennis.

Thank you, Scott. In 2006, Coeur was once again the leading primary silver producer, with the highest production and net income in the sector. I think we also have a sector leading cash position that enables us to take advantage of growth opportunities in 2007. Our liquidity continues to offer investors a strong average daily trading volume of nearly $30 million. We fully intend to maintain this leadership position in the years ahead, and expect to see our silver production near 20 million ounces in 2008. 2006 should go down as a water shed year for Coeur. After carefully defining and executing our strategy over the past three years, I think we saw the payoff in 2006 in terms of record-setting financial performance. Let me take just a minute to review with you again the four-part strategy. First, to operate efficiently with a constant focus, to reduce costs. Secondly, to grow high quality reserves and resources through an expanded exploration program. Third, to construct and ready for 2008 full-year production our San Bartolome silver mine representing nine million ounces of new silver production. And also our Kensington gold mine, now expanded to 150,000 ounces of expected gold production. And last, to continue to externally grow Coeur through accretive acquisitions of high-quality silver production and reserves. I think the people of Coeur achieved major milestones in each of these four categories in 2006, and I'm proud of them.

That helps explain how the company generated record-setting income and cash flow for the year. I'd like to site just a few of the accomplishments for the full year 2006 before turning to the quarterly results. We experienced an eight-fold increase in net income. Nearly a 13-fold increase in cash flow. Metal sales rose 39%. And silver production increased 10% from continuing operations. At the same time, we experienced a 6% decline in our silver cash cost per ounce to $3.33, well below the target of $4 we set a few years ago. In addition, our exploration team led by Don Birak, executed a very aggressive and successful exploration program that yielded a 16% increase in gold mineral reserves to 1.5 million ounces. A 29% increase in gold mineral reserves at the Kensington mine alone. And we also had an increase again in silver reserves. Martha, in Argentina, reported a significant increase in proven and probable reserves. And importantly, an increase in the average silver grade. And with this in mind, we're announcing today that we are completing a feasibility study regarding the construction of a flotation mill at Martha, and that decision should be made in the first quarter late. We generated almost $25 million of operating income and 2.7 million ounces of silver from our Australian interest that we acquired in 2005. And the lower cost earnings contributing production and reserve ounces that we gained with these strategic investments favorably replaced our sale in 2006 of Coeur Silver Valley, our oldest and highest cost mine. Finally, our team made significant progress building our new development projects and the new mine, the Kensington gold mine and the San Bartolome silver mine, both of which we schedule for full production in 2008. It seems to us that our strategy is working and we intend to stay focused on it. Of course, we're doubly pleased that it is working for our shareholders at a time of robust mark prices for silver and gold.

Although we're gratified by these results we are relentlessly focused on additional growth initiatives designed to build upon these momentum in the areas of silver and gold production, exploration, acquisition, and the continued management of our cost. In 2007, we will continue to set the stage for the quantum leap in production that we expect to see for the full-year 2008. The exploration program that is such a central element of our strategy holds special promise for us this year, where we will be making record level investment in new greenfields targets. And you will hear more about our full exploration program from Don Birak in a few minutes. Now, let's turn to our fourth quarter results. In a nutshell, net income in the fourth quarter was more than double that of a year-ago period. Aided by the strong performance at the Martha and Endeavor mines, and, of course, higher silver and gold prices. In comparing the fourth quarter of 2006 results to the year-ago period, we saw a 31% increase in metal sales, and a doubling of net income to $23.2 million. Regarding our operating performance, in the last quarter, we produced 3.4 million ounces of silver at a cash cost of $3.41 per ounce. And produced nearly 32,000 ounces of gold. We were pleased to see the sequential quarter increases in both silver and gold production, a reflection of the hard work being done by the team here at Coeur in the field. And of course, that resulted in corresponding sequential increases in sales and net income.

During the fourth quarter we continued to make good progress on our two big construction projects, San Bartolome silver mine in Bolivia and the Kensington gold mine, and I will talk to you about these projects in more detail later on. It seems that our fourth quarter results were clearly magnified by strong prices, with silver showing a 56% increase over the year-ago period, and gold showing a 24% increase. And of course, our plan was based upon the expectation that because of improving industrial fundamentals, the markets for both of our products would be strong. Now, I'm going to ask Jim Sabala, our Chief Financial Officer, to provide some additional comments on the performance of each of our mines and comments on our financial strength and balance sheet. Jim?

Thank you, Dennis. If you're following the slides on our Website, I will start with comments on Rochester which are on slide number seven. At the Rochester mine in Nevada the silver cash cost pronounced in the fourth quarter and the full year of 2006 were well below the cash costs reported for the full year of 2005 and 2004, reflecting the company's improved operating efficiency, and the benefit of increased gold by-product credits. Fourth quarter silver and gold production were nominally below the levels of a year-ago period due to normal variations in the recovery of metal from the heat. The moderate increase in the silver production cash cost per ounce relative to that year-ago quarter was the result of that lower production. At the Cerro Bayo Mine in Chile, quarter three silver production increased 53% and gold production more than doubled relative to the levels of the preceding quarter as the company continued to develop the new high grade Cascada vein system. Cascada in particular contributed to a 51% increase in silver grade and a 100% increase in gold grade on a sequential quarter comparison. Silver production cash costs per ounce dropped 91%, relative to the preceding quarter, due in part to the higher production volumes. Relative to the year-ago quarter, silver production cash cost per ounce declined 28%, due to increased by-product credits for gold. Quarterly silver production was below the fourth quarter of 2005, due to fewer tons milled, and modest fleet lower silver grades. The company expects quarterly production levels to trend upward at Cerro Bayo as the year progresses, as mining continues in the high grade Cascada vein system.

At the Martha Mine in Argentina, silver production increased 36% relative to the year-ago period, due to an increase in tons milled, and modestly higher silver grain. In particular, Martha silver production during the fourth quarter of 2006 reached its second highest level in the mine's history. Silver production cash costs per ounce increased relative to a year-ago quarter, due to higher royalties, resulting from higher metals prices that we realized.

As you will hear from Don Birak in just a minute, we also had a very good exploration result at Martha. Currently, Martha's order shipped to Cerro Bayo for processing. If approved by the company's board of directors, the new mill would enable Martha to process ore on-site and would support the continued expansion of reserves and resources at Martha and at the recently acquired interests in the Santa Cruz province.

Slide ten shows the operating highlights on the Endeavor Mine in Australia. Before I comment on the quarterly results there, let me just repeat what Dennis told you. Our acquisition of Endeavor, along with our other Australian interests in the Broken Hill Mine, has been a resounding success. These two interests collectively added 2.7 million ounces of silver, and almost $25 million of operating income to the company's results in 2006. At Endeavor, silver production in the fourth quarter of 2006 increased almost five-fold relative to the year-ago period and 32% relative to the preceding quarter, due to improved mine performance. Silver cash production costs per ounce was higher than that of the comparable periods due primarily to higher smelting and refining costs, associated with higher silver prices. At the Broken Hill Mine in Australia, quarterly silver production declined modestly, relative to a year ago, and preceding quarters, due to fewer tons milled and modestly lower grades. Silver cash production costs per ounce was above the levels of both comparable periods, due mainly to the same factor that affected Endeavor which is higher smelter and refining charges associated with higher prices.

Turning now to the balance sheet, I'm pleased to tell you that Coeur continues to have a rock-solid financial position. The company had $341 million in cash and short-term investments, as of December 31, 2006, capital expenditures during the fourth quarter and the full-year of 2006 amounted to 45.5 million and $148 million respectively, most of that spending in 2006 was directed at Kensington. Our capital spending for 2007 is expected to be about 235 million, with the lion's share of that going toward the completion of the Kensington and San Bartolome projects. And on that note, I will turn it over to Harry Cougher to provide the update on the Kensington project. Harry?

Yes, thanks, Jim. I'm actually speaking to you from the Kensington office today. The Kensington gold mine has about 400 people currently at work, who are continuing to advance the prospect. Our recent work has focused on the completion of the mill, and the crusher buildings, and the installation of the ball mill and flotation circuit. At the same time, we continue development work underground, including the advancement of the main haulage access from the mill to the underground workings. We currently estimate that the total cost of the construction of the Kensington Gold Mine to be approximately $238 million. As compared to the previous cash cost estimate of $190 million. The increase is due to overall inflation that has impacted the capital costs, and the higher expenses associated with the legal challenge to one of the mines existing permits. We estimate the cash production costs to be $310 per ounce in the initial years of operation. Due to the 24% increase in the gold rate at Kensington, we now expect that the mine will produce as much as 150,000 ounces per year in its initial years of operation. Commercial production is planned to commence in late 2007. Assuming a successful resolution of the litigation concerning the existing permits.

On the subject of the legal challenge, I will remind you that the permit was upheld by the federal district court in Alaska, and has the support of multiple federal and state agencies. We are very excited about the 29% increase in the reserves at Kensington during 2006, and I will let Don Birak describe that in greater detail in a few minutes. We've included a few photographs of the Kensington in our presentation, beginning at slide number 14, which shows an exterior view of the mill building. Slide 15 shows the same building from a different angle. And slide 16 shows the interior of the building with the flotation circuits coming together quite nicely. Slide 17 shows an impressive list of construction milestones that have been completed at Kensington. When you look at all of this activity, the thousands of feet of tunneling, drifting, and drilling, the construction of the surface facilities and port facilities, and the sheer quantity of steal and pipe, I think you can appreciate how far we are with this project. That's it for Kensington. Now, I will turn it back to Dennis.

Thanks, Harry. At the San Bartolome silver mine in Bolivia, we now have about 200 workers on-site. Recent activity has focused on construction of the tailings facility and preparations for pouring concrete at the mill site. We currently estimate the final feasibility capital costs of San Bartolome to be approximately $174 million. The increase is almost entirely due to inflation impacting capital costs, since the updated feasibility study was completed in 2005. Based upon an initial cash cost of four dollars per ounce, and current metals prices, the project will indeed provide attractive returns. We expect the commercial production will commence there timely in January of 2008, with approximately 9 million ounces of silver produced that year.

On the political front, I will tell you that I personally feel very good about our situation in the country. I know there has been a lot of noise about Bolivia over the past year. But I was there just two weeks ago again, and while there, I met with all of the key senior members of president Morales' cabinet that deal in mining. During those meetings, I was told consistently and repeatedly that we have the strong support of the government for San Bartolome. They recognize that holds the key for the restart of the mining district, and that there is absolutely no intent in the government to impact any part of our ownership of the project. Now, no doubt, the government has indeed expressed a desire to increase taxes in the mining sector. Not unexpected given the strong prices and markets we're seeing. And although the government has not yet submitted any specific formal proposal to Coeur in this regard, partly because of the country's miners are opposed to such a move, nevertheless, when the government does move forward with its new tax proposals, we're confident they will take in a reasonable approach to this issue, recognizing that they indeed have to compete for foreign investment to grow the mining sector.

Again, if you're following the slide show, you will see that slide 19 features an artist rendering of what the tailings facility will look like when it is completed. It represents the bringing of new technology into Bolivia. And we began work on this portion of the project near the end of 2006. We're very excited about our exploration program at Coeur, both in terms of what it did for us in 2006, and what we expect it to contribute to us in 2007, and now I'm going to ask Don Birak to talk to you specifically about our exploration plans. Don?

Thank you, Dennis. And you're right, this is an exciting time for us in the exploration department. 2006, our exploration goals were to increase our mineral reserves and resources and to expand our property portfolio and favorable new terrain to find and develop new silver and gold mining opportunities. I think we succeeded on both fronts. Silver reserves at our continuing operations increased, and we achieved a very significant 16% increase in our gold mineral reserves. On the gold side, Kensington led the way with a 29% increase relative to year-end 2005. Exploration will continue to be a major element of our strategy in 2007. Support of this, we will boost our spending this year to more than $15 million with a record 40% of that devoted to Greenfield's exploration specifically in Argentina, Tanzania, Mexico, Chile.

Slide 21, you can see graphically what I just mentioned about our increases in silver and gold reserves. Looking in more detail at Kensington in slide 22, last year, we drilled over 45,000 feet of Coeur from underground and service which as you can see thon slide increased the gold mineral reserve by 29%. In addition, as Dennis mentioned we also increased the average grade of the reserves by 24% over .3 of an ounce per ton. Which will reflect in higher ounces produced in the early years of mining. And we reported these improvements while increasing our additional indicated mineral resource base.

Next, let's move to our South American exploration efforts. The map on slide 23 shows you the areas of Chile and Argentina where we expect to be very active in 2007. In 2006, we were successful in adding four new properties to our exploration portfolio. These properties covered by option agreements in the province of San Juan, Argentina, are El Aguila, Costa, Sascha, and Joaquin. Sascha and Joaquin are part of our option agreement with Mirasoll Resources and El Aguila progressed to a drilling stage in the fourth quarter of 2006. More about that shortly.

I would like to shift now to our program Cerro Bayo and Martha, starting with the Cascada vein system in Cerro Bayo. On slide 24, you see a geologic map for this high-grade system. Cascada actually consists of four separate ore shoots, and the entire system is about 700-meters long and open to the north and at depth. The grades at Cascada are much higher than what we've seen historically at Cerro Bayo, especially gold and we are optimistic about the ability of Cascada to yield substantial new reserves. As you heard Jim Sabala say, we are also seeing the ore out of Cascada adding to our production numbers. It is significant to note, Cascada was discovered in 2005 and is now in the mine development stage, very much a rapid pace for this important new project. In 2006, Cerro Bayo achieved a 21% increase in silver grade to 9.7 ounces per ton and over 30% in the average gold grade to 0.19 ounces per ton. Much of that was due to Cascada. Last year we drilled over 232,000 feet of core at Cerro Bayo, and we plan a similar-sized program in 2007.

Next, let's turn to Martha in Argentina and a cross-section of the Martha R4 on slide 25. Again, it is worth repeating that Martha mine has some of the highest silver grade ore in the world. Last year's mine grade was over 79 ounces per ton and the average grade of a current mineral serve is 61 ounces per ton. These facts plus the new drill results on these map show why I remain optimistic about our existing land packages at Martha. Like at Cerro Bayo, we invest significantly in exploration drilling at Martha which totaled over 87,000 feet last year.

The next two slides provide a look a at one of our four new greenfield properties mentioned earlier, El Aguila eastern Santa Cruz. Core drilling commenced at El Auguila in eastern Santa Cruz province late in the year and totaled over 3300 feet. Slide 26 shows the property location and the major target areas on this property. On slide 27, we focus in on the south target area, at El Aguila, enlarged to show the multiple veins of structures we identified last year, and location for several of the drill holes we completed in December. The table at the right on this map, this analytical results from all of the 15 shallow holes we drilled, in 2006. Note the significant gold and silver values from holes seven and eight which were drilled in the south target, an area with no prior exploration drilling. Based upon these and other favorable results, we are planning a second phase of drilling for this year at El Aguila.

The final two slides show you our other major greenfields area in the Lake Victoria belt in Tanzania. Last year we drilled at both the Kiziba Hill and Saragurwa properties, where at Kiziba Hill, we completed 13,000 meters or 44,000 feet of RAB, rotary air blast drilling, to obtain the chemical sampling and geology beneath the laterite cover. This worked to find a large zone of enormous values, measuring over 1.2 miles long in a west/Northwest direction by over a third of a mile wide in an east to northeast direction. And in December of last year, we commenced core drilling at Saragurwa, completed over 400 meters, or 1300 feet. On the last slide, on the mark of the Saragurwa it shows recent drill results for portions of the two core holes we just received. We are encouraged that we are finding anomalous gold values at Saragurwa where no prior drilling has taken place and we plan to continue drilling on it and commence core and reverse circulation drilling on Kiziba Hill in 2007. So again, we're pretty excited about what we've accomplished in '06 and we look forward to a very good year with good results coming from exploration in 2007. Dennis?

Thanks, Don. Coeur does expect silver and gold markets to remain very robust in 2007. And we think that the strong demand for silver our primary product is, likely to support healthy market prices, well beyond this year. We're particularly encouraged by the steady growth in industrial demand and the new uses found for silver it seems every year. These market conditions combined with our ongoing strategic initiatives, we expect will enable the company to continue to generate attractive earnings and cash flows for our shareholders. We saw yesterday that gold and silver prices rebounded sharply as a result of strong fund buying because of higher than expected U.S. inflation, strengthening energy prices, and continued international anxiety. Factors that also bode well for improved precious metals prices. We currently expect our existing properties only to produce nearly 13 million ounces of silver in 2007, with a cash cost of approximately $2.35 per ounce. Sharply lower than the cash costs we reported even this past year. And lower than anything we've seen at Coeur in at least the past decade. I guess what that boils down to is the result of our continued focus on lowering costs at Coeur. We expect full-year gold production to increase 17% to nearly 136,000 ounces, including nearly 21,000 ounces from the Kensington gold mine produced in the last quarter.

During 2007, we do expect to complete construction at the San Bartolome project, go through the shakedown, and significantly contribute to the company's silver production commencing in 2008, as the largest primary silver mine on the drawing board being built today. In addition, we continue to actively evaluate acquisition opportunities to bring additional low cost silver production to Coeur. In a real sense, 2007 will be a transition year for the company. As we position ourselves for a quantum leap in silver and gold production. We have illustrated this to you on slide 32. Here, you can see that separate and apart from any potential acquisitions, we're poised to produce about 19 million ounces of silver in 2008, with San Bartolome coming online. Similarly, we expect to make a quantum leap in gold production when Kensington comes online with a production target of more than 200,000 ounces in 2008. Clearly, these two projects are the key elements of our internal growth strategy, as they have been in the past few years. And we're doing everything we can to advance them in a timely, responsible manner. When you combine this internal growth with the exciting things going on in the exploration arena, as well as the exciting things we continue to look at to grow the company externally, I think you will join the chorus that Coeur is truly the growth company in fact in the silver sector.

Thanks for your continued interest in Coeur. Scott?

Okay. Thanks, Dennis. Operator, we're ready to go to Q&A.

Thank you. [OPERATOR INSTRUCTIONS] The question-and-answer session will be conducted electronically. If you would like to ask a question today, please press the star key followed by the digit one on your touch-tone telephone. It will take as many questions as time permits. Once again if you do want to ask a question today, please press star one. And our first question today will come from John Bridges, J.P. Morgan.

Hi, Dennis.

John?

It's just, this silver space is getting quite exciting and I just wonder you've been in this game a long time, probably longer than a lot of us, I just wonder how you see this market today compared to how it was when we had the last run-un?

Well, I think a few things have happened in our space, John. First of all, I think there is no doubt that the business has more challenges externally, probably, than internally today. But clearly, with regard to silver, I think the steady erosion of inventories over the last dozen years or so have really brought home the fact that there is indeed an ongoing gap between supply and demand. There will be some growth in silver production, but not significant in terms of the overall growth rate. So when I look at the ongoing new uses for silver, and it continues to strike, because silver is the metal of the future here, that silver shareholders are going to be well-rewarded.

And in Bolivia, we know the miners don't want tax increases. But the government wants more revenue. And how do you see that working itself out?

Well, as I mentioned, we have not yet received the specific proposal from the government. Three or four have been mentioned over the last year, John. We've taken each one of those and factored them into our comments with regard to San Bartolome and our return expectations. I do believe that whatever they do down there will not be too far from what the surrounding countries in South America have for a mining tax structure, and after all, they have to remain competitive. They do realize the need for foreign capital to grow their mining space. And I remain cautiously optimistic today that that is going to sort itself out fine this year.

Okay. Best of luck.

Our next question comes from Sean Cook, CIBC.

Hi, gentlemen. Just a question on San Bartolome, I would like to drill down a little bit more on that 174 million number that is a result of your upward revision. You talked about the tailings facility. Can you tell me what fraction of that one could allocate to the tailings facility?

Well, I think the -- this is Sabala, Sean -- if you take the change in capital price between 135 and 174, and you take a look at the time frame, which is 2005, to 2007, it is clearly the result of the inflation that has been impacting the industry overall, as a result of our business. So there is no one single item that jumps out at you that says this is a change in scope, or something else. It is really the same impacts being experienced pro rata across the project as a result of the boom that we're in right now.

Yes, but in terms of absolute numbers, what is the CapEx budget?

$130 million number if I recall, Sean, in the tailings facility.

Thank you very much. Have a good day.

RBC's Mike Curran has a question.

I just wanted to clarify on Rochester, those really low operating costs, you're forecasting for '07, is that basically because you stopped mining in the first half, and that's really what's driving those really low costs? I mean they're like 98% lower than the '06 numbers.

Yes, it is, Mike.

Great. And then so now, I kind of thought you had a couple of years of mining left. Does that mean you leech for two or three more years after that so that you finish up maybe in 2010? Is that kind of the thinking these days?

2011 is the plan that we have right now, Mike. And of course that is heavily dependent on metals prices. If we have very robust metals prices, then it becomes an economic exercise and it is possible that it could go beyond that.

Sure. Great. Okay. Thanks a lot.

Thank you, Mike.

As a reminder, if you would like to ask a question today, please press star one on your touch-tone telephone. We will move to Dave Martin, Deutsche Bank.

Yes, thank you. Just a couple of things. Coming back to San Bart, can you tell us what the capital spending has been to date on the project, versus the 174? And then I guess, secondly, is there any chance, and Dennis, I think you commented on the potential ramp-up, but towards the end of the year, is there any potential we could see some production later in '07?

Yes, I will take the first one, and then I will turn it over to Dennis. This is Jim Sabala, Dave.

Uh-huh.

The spending to date has been relatively nominal because it has been primarily focused on engineering and ramping up long lead time items. During 2006, we spent $15 million on the project. During next -- this year, 2007, we will be very aggressive, we will spend about $120 million on that. A little bit of the capital spending in our estimate flows over into 2008, just because of working capital management. The work is actually completed at the end of the year, which allows us to start commercial production. So about 120 million in '07.

Dave, with regard to your second part of the question, our objective here is to experience the first full year of production at San Bart at 2008. If we started up a little earlier than that, in the shakedown phase, et cetera, and have some silver production, that would be fine, too. But as I say, our focus is 2008, full-year.

Okay. And then secondly, Jim, I wanted to come back to some of your comments, I may have missed them, when providing the mine by mine outlook for '07, I think you commented on how '07 would -- kind of the progression through the year, maybe -- could you give us a sense of I guess what production levels could look like in the first quarter?

We haven't provided that level of guidance. What I would suggest is you give Scott Lamb a call and chat with him rather than take up the time of everyone on the call here.

Okay.

Our next question will come from [Ralph Kirchner].

Yes, it sounded like there was a possibility that up at Kensington there might be a successful legal delay that would lead to the mine opening later. Did I hear that correctly? And could you describe the status of the legal challenges up there, and what the calendar looks like, as far as the resolution?

Well, first of all, I want to repeat what I said. We didn't suggest we were expecting a successful legal challenge. We've clearly said from the get-go, reminding people that the federal district court of Alaska has sustained the permit, the one permit in question out of of the numerous permits that are relevant to the project and that all of the federal agencies, the state of Alaska, are solidly behind the view that the permit is valid, and that the legal challenge will fail. And that's where we stand today.

But what I wanted to ask was, has the legal challenge been settled? And if not, when is it likely to be settled?

Legal challenge has not been resolved yet. I think we've told the marketplace that the hearing was held in December, before the 9th Circuit Court of Appeals panel, and that is all I can tell you today.

There is no indication as to when there might be a resolution?

I've suggested to you that's all I can tell you today.

Okay. And the last question I have is when it comes to the challenges, the legal challenges up there, and the political challenge in Bolivia, which one of those two new mines is more likely to worry the company as far as the outlook that is being provided for the future of those two mines?

Well, I'm not sitting here today worrying about our projects. I think we have a strategy in place to deal with both of them. I think I've fairly indicated to you, in my comments today, and others on the line, that we believe the political uncertainty in Bolivia is behind us.

Okay. Thank you.

And that does conclude our question-and-answer session for today. I would like to turn the call back over to our speakers for any additional or closing remarks.

Thank you, operator. Just again, we would like to thank all of you for your interest in Coeur, and joining us here today. Obviously, I'm very pleased with the team and the results they produced in 2006. But all of us here are pushing ahead aggressively in 2007 to not rest on those laurels, but to build upon this past year's success. We fully intend on remaining the world's leading primary silver producer, with the strongest production income, reserve, and production growth in the industry, when the 2007 report card comes in. And we expect to stay with our strategy, confident that it will generate additional value for our shareholders this year. Thanks to all of you, and have a great day.

Once again, thank you all very much for joining us today. That does conclude the presentation. Have a great afternoon.