Coeur Mining Inc (CDE) 2009 Q2 法說會逐字稿

Good afternoon. I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter Coeur conference call. (Operator Instructions). Thank you. Ms. Anderson, you may begin your conference.

Thank you for joining us today to discuss the Company's results for the second quarter 2009. This call is also being broadcast live on internet through our website at www.coeur.com where we've also posted the slides that accompany our prepared remarks. A telephonic replay of the call will be available for one week afterwards on our website. On the call today, here in Coeur d'Alene are Dennis Wheeler, Chairman, President and Chief Executive Officer, Mitchell Krebs, Senior Vice President and Chief Financial Officer, Leon Hardy, Senior Vice President of North American Operations and Don Birak , Senior Vice President of Exploration.

On the phone are Richard Weston, Senior Vice President Operations and Don Gray, Senior Vice President of South America Operations. Any forward-looking statements made today by management come under the securities legislation of the United States, Canada and Australia, and involve a number of risks that could cause actual results to differ from our projections. Please see our full cautionary statement on Slide 2. With that I will turn the call over to

Thank you, Karli. Welcome, and thank you for joining us on today's call. Today is Bolivian Independence Day, and I'd like to congratulate all Bolivians, and our more than 300 employees in Potosi Mapa on this important symbolic day. Being a supportive corporate citizen in Bolivia has been an integral part of our development and operation of San Bartolome, and we look forward to a long and productive partnership with the people of this country. As we enter the second half of 2009, Coeur is very pleased to report to you that it is operating from an enviable position of strength. Over the last several weeks, we have certainly seen the sun rising on our new mines that have been years in the making. These investments and outcomes are reflected in a strong second quarter, as the Company and its operations gained momentum that will continue through the second half of the year, and into 2010.

Operating cash flow rose nearly 700% to $16.8 million for the quarter. And we reported second quarter net income of $11.6 million or $0.17 per share, an increase of $18 million year-over-year. Our people also set a Company record for second quarter silver production with 4.3 million ounces, a 74% increase year-over-year. And San Bartolome in Bolivia, led the way with 1.9 million ounces of production followed by Palmerejo with 588,00 ounces during it's start up. Revenue was up over 46% over a year ago, somewhat impressive when you consider that silver prices in last year's second quarter were much higher than in Q2 of this year. We are now mobilized to start work toward the late 2010 start at the Kensington gold mine in Alaska where construction is already 90% complete.

There's three steps involved in reinstating our permits at Kensington. The first major step was achieved June 22nd when the United States Supreme Court found in favor of Coeur and the state of Alaska, for the original Lower Slate Lakes Tailing Plan at Kensington. The second step was completed when the Ninth Circuit Court lifted its injunction. In fact, the court lifted the injunction much more quickly than we had anticipated. Only one step remains, the US Army Corp of Engineers must only issue a letter to Coeur saying that our right to resume activity at the site has been reinstated upon the dissolution of the injunction. The Coeur has already had a 15 day notice period for comment for the lifting of the suspension which ended this past Monday, and we are confident this will be a speedy process.

We are extremely grateful to Juneau and the southeast Alaska community for the bipartisan overwhelming support for the mine which is already 90% completed. We look forward to hitting the ground very soon to put 300 native and southeast Alaskans to work, and moving us to production in the second half of 2010. The economic benefits of Kensington will extend far beyond the mine site and into the Alaska community, which is another reason we are so eager to begin. The mine will have a major impact on local employment with an estimated 300 direct hires locally. We will also being paying out about $25 million in annual payroll which will benefit the local tax base. We will spend approximately $20 million on supplies and services spent mostly locally. And most important for our shareholders, Kensington will bolster Coeur's gold production enormously by 185% in 2010 alone, and will foster a stronger economy in southeast Alaska. So we are thrilled to be finally so close to production.

To assist in funding Kensington, we have furthered strengthened our financial position. Specifically, we have reduced our debt by over $150 million year-to-date. And last month we successfully exited our four year investment in the Broken Hill mine in Australia realizing a 39% annualized rate of return, inclusive of the $55 million in immediate cash proceeds. Today the Company finds itself at an inflection point for our employees, shareholders and the communities we serve, as both production and cash flow are accelerating. We have two of the world as largest and newest silver mines in production, Palmarejo and San Bartolome, and a very significant gold asset, Kensington now poised to begin operations next year. We have $80 million of cash in the bank, with $100 million in projected operating cash flow this year.

Slide 4 gives you a real sense of where the Company is headed. During the second quarter, we produced 2.5 million silver ounces across our smaller mine sites, and this year we produced 4.3 million ounces, a 74% increase including the contributions of Palmarejo and San Bartolome. This chart clearly shows that our transition to long life, high volume, lower cost mines has been successful. Our largest producers are also the newest. And our investors can look forward to many years of meaningful production from them. In light of our strong operational momentum, we iterate our guidance for $100 million in operating cash flow this year, compared to $12 million in 2008. At the half way point of the year, we are confident in our ability to achieve this level of growth and the strong metals pricing environment just adds to our confidence. Now I will turn the call over to Richard Weston.

Thank you, Dennis. The Palmarejo silver and gold mine in northern Mexico continued ramp up production during the initial quarter of operations. We are still in the commissioning process. During the quarter, Palmarejo produced 588,000 ounces of silver and 9730 ounces of gold. All construction contractors are now demobilized. Mining operations are producing at expected production rates and grades. Crushing and grinding processes have been fully commissioned, and performing according to plan. Gold recoveries are coming in according to plan, and silver recoveries are increasing rapidly. We expect to reach design capacity at Palmarejo in the third quarter, with an annual run rate of 9 million silver ounces and 110,000 ounces of gold. I will now pass it over the Don Gray in Bolivia.

I would like to join Dennis in congratulating our Bolivian's on today's historic Bolivian Independence Day. Here at San Bartolome, the world's largest purest -- the world's largest purest silver mine, we produced 1.9 million ounces during the second quarter, and 4 million ounces during the first half of the year. For the first six months of 2009, operating costs averaged just over $7 per ounce. Our operations at San Bartolome may continue to strengthen, and we have confirmed that we have reached design capacity. During June and July, we produced well over 700,000 ounces per month, at an August we are off to a great start. We recently appointed Stewart O'Brien as General Manager for San Bartolome.

We also continue developing, investing in our Bolivian team, and implementing important programs, programs that will enhance our manager and logistics capabilities throughout the region. In addition, I would like the to mention that our commitment and investment in Potosi goes far beyond just our management team. We have more than 300 employees on site, and about 80% of them are from Potosi. In fact 96% of our employees are Bolivian. Our workers had over 5 million hours without a lost time accident during San Bartolome's construction. Coeur's Bolivian operations have a direct and crucial impact on Potosi's at local economy. For example, during 2009 alone, over $32 million will be spent in this community. This $32 million includes direct tax revenues, funding for school infrastructure to benefit the community's children, support for a number of arts and sports programs, programs to support mine safety and skills and funding for community development. And now, Leon

Thank you, Don. As Dennis mentioned, work is now beginning at Kensington. Leading up to the favorable US Supreme Court decision, we carefully analyzed and reviewed project costs once more. That effort has yielded a detailed estimate of $70 million in capital expenditures to complete the remaining construction projects, and mine-related investments to get us into commercial production. Once ramp up is complete, we expect to see cash operating costs of approximately $475 per ounce, with 120,000 ounces of annual production, and a 12.5 year mine life. We expect operational ramp up to begin in early 2010, starting with initial mine production and ore stockpiling utilizing standard underground mining methods, while mill operations commence commissioning and training on the fully completed 1,250 ton per day flotation plant.

Production is expected to begin in the second half of 2010, resulting in a partial year of gold production totaling approximately 40,000 ounces. Kensington will have an annual run rate of about 120,000 ounces of gold. Since Kensington is already 90% complete, the time line for construction and start up is a relatively short one. The majority of the required investment relates to the tailings facility and related infrastructure. Since the Supreme Court decision, we have bid several key construction contracts, and have mobilized our own construction management team. We are poised to focus on the construction of the Lower Slate Lake tailings facility during the remaining of the year. And we will turn toward operational ramp up activities early next year, so we can achieve the target start up dates. I will now turn the call over to Mitch.

Thanks, Leon. Our second quarter results were positively impacted by contributions from Palmarejo and San Bartolome, along with steady performance at Rochester and Martha. We had operating cash flow of $16.8 million, an increase of nearly 700% year-over-year, and net income of $11.6 million. As expected, our operating cash flow is increasing toward our goal of $100 million for the full year. Our guidance for 2009 was based on $13 silver and $900 gold prices, which we feel are appropriately conservative assumptions. With the proceeds of the interest in the Broken Hills sale, pro forma cash position now stands at a comfortable $80 million.

The Companies remaining CapEx for the year is approximately $100 million, with the inclusion of Kensington. We plan to fund this remaining CapEx from a existing cash of approximately $80 million and cash flow from operations which we expect to reach $100 million for the full-year, with $25 million of that having been generated in the first half of the year, and remainder obviously in the second half. In addition, the Company has executed a term sheet to provide Coeur Mexicana with a $30 million revolver, and is in advanced discussions to establish a facility to provide additional financing flexibility to support the remaining construction at Kensington. Our commitment to reducing nonoperating costs remains strong, as G&A expenses declined 22% year-over-year, and represents the third straight quarter of declining G&A costs.

Turning to the balance sheet, we have received a $55 million in cash proceeds from the sale of our interest in the Broken Hill mine. As you may recall, we entered into this investment in 2005, and it costs us $36.9 million. And last month we sold that interest realizing an annualized rate of return of approximately 39%. We have also taken advantage of the state of the convertibles market to opportunistically reduce the remaining balance of our two unsecured convertible debentures we obtained to build our new mines. We started the year with $400 million in obligations related to these two debentures, and that balance now stands at just $230 million a reduction of 37%.

With an enhanced capital structure and improving cash flow, we are proceeding confidently toward completing construction at Kensington. Slide 14 illustrates how the majority of the Company's investment in these new mines is behind us, and how CapEx is moderating. The current quarter reflects the combination of Kensington expenditures, and final reduction of CapEx down in Mexico. This declining expenditure trend will continue as we complete the remaining investments at Kensington, while at the same time seeing our operating cash flow from all three new mines contribute to an effective long term cash flow profile. Don?

Thank, Mitch. Coeur's exploration in the second quarter of 2009 focused on the Guadalupe area of Palmarejo in Mexico, as well as Phase II drilling at Joaquin near our Martha mine in Argentina, and definition of the new Delia vein in Cerro Bayo in Chili. Favorable results were obtained from all targets. We expect this work and follow up drilling to lead to an increase in reserves at Palmerejo, and Cerro Bayo, and along with results from a soon to commence Phase III at Joaquin, an estimate of the first mineral resources for that property near Martha. Looking in more detail at Guadalupe on Slide 17, you can see in this long section where we drilled in the second quarter of the year, denoted by stars. This work not only expanded the size of the deposit to the north and its depth, but filled key gaps at the Las Animas -- Guadalupe sewer zones where there are strong potential to increase the current surface minable ore reserves.

Drill pierce points on the Guadalupe Las Animas structures are shown color coded by gold equivalent grades, selected to match those used in our open pit and underground mine at Palmarejo to the north. We are pleased with results from this quarter's drilling and expect it to result in an increase in proven and probable reserves this year. Moving to Chili, our exploration team intersected a very high grade silver and gold mineralization in a new vein termed Trinidad, which occurs just to the west of Delia vein. Follow up drilling on this and other targets is underway. Exploration drilling focused on definition and expansion of the large Delia vein system during the second quarter, which is located less than 500 meters southeast of the Cerro Bayo mill and on testing new targets to the district. Over 13,000-meters of drilling was completed this quarter on all targets.

Over in Argentina, Coeur's exploration team completed a second phase of drilling of 1900-meters and 15 new core holes at the Joaquin property this past quarter. Two targets, La Morocha and La Morena were drilled at this property near Martha, in which we have an option to earn up to 71% managing joint venture interest. Results from this second phase were similar to those of Phase I, and are very encouraging, wide zones of silver and gold mineralization intersected in nearly all core holes. In the maps on the first slide, you can see the location of the Joaquin property and enlargement of the Phase II targets drilled. Earlier this year, we also drilled a Phase I at the La Morena target to the west, which intersected a zone, a wide zone of mostly gold mineralization. Thus far drilling on La Negra has produced some of the highest grade intersections of all the targets drilled Joaquin. Here you can see a plan, a sectional view of La Negra with some of the better drill results thus far. Holes 31 and 38 were drilled this past quarter. Mineralization at La Negra is largely oxidized and remains open to the north and at depth. The La Morocha target occurs about 1 kilometer to the east of La Negra. Our work at La Morocha has intersected wide zones of silver and gold mineralization, in breccia , casing veins and stock works. Some of the significant results are shown on this slide with Holes 25 and 26 having been drilled in Phase II. The silver and gold mineralization at La Morocha is also largely oxidized and open for expansion to the north and at depth. A Phase III drilling is scheduled to commence in third quarter, to further test the size potential of both zones and conduct initial metallurgical tests.

We have entered a new era for our shareholders to benefit from the unique features of silver, which is both an investment vehicle and today's modern world technology metal. We continue to see exciting new applications for silver that will drive demand well into the next decade. Silver is now being used in most hand held electronics, such as I pods, music devices and cell phones where manufacturers are employing silver instead of lead due to silver's quality and efficiency. These electronic components alone represent over 200 million ounces of worldwide silver demand, and growing each year. Meanwhile, there's a growing use of silver as a biocide in products that feature antibacterial silver, such as in medical devices, appliances and industrial surfaces.

While technology silver demand is growing, investment demand is reaching another all time high as we enter the second half of 2009. The launch of a new silver ETF last week called Silver Trust was a big success, and iShares silver ETF is currently at record levels. Some analysts speculate that this demand has the potential to outstrip mined silver supply in the near term. No matter what your individual opinion is about inflation, analysts remain generally bullish on silver. As you can see from just this sample of estimates out there for our metal, the 2010 estimate is in the $14 to $15 range certainly favorable to Coeur. This translates into further potential upside for Coeur and our shareholders. We are seeing that investors are holding on to silver and gold. Gold Fields MIneral Services of London said recently that it expected Central Bank gold sales to be at the lowest level since 1994. And we continue to be bullish, and feel that there remains excellent upside for precious metal prices. And now as is a favorable time for our investors.

Over the next few quarters, our investors, employees and community partners have much to look forward to. We will achieve full production and design performance at Palmarejo. And we will successfully complete our first full year at San Bartolome, leading to record production and cash flow generation. We will start up our new Kensington mine next year, and again substantially boost our gold production and cash flow. And on the exploration front we will report new reserves from Palmarejo later this year. We will continue to strengthen our balance sheet. And finally we will remain individual lent in our on going efforts to reduce nonoperating costs, reduce debt, and deliver shareholder value. Operator, we are now open for questions.

(Operator Instructions). Your first will come from John Bridges.

Morning Dennis, everybody.

John.

Hi. In your Palmarejo accounts again, there's nothing there shown for a royalty. Is that payable yet to Franco-Nevada, and if so, how is it going to be booked going forward?

Hi, John. It is Mitch here. I am going to ask Tom Angelo, our Chief Accounting Officer as far as how to treat the Franco-Nevada royalty payment.

Yes, it is basically, the accounting rules that we looked at this last quarter, was that the royalty is considered an obligation. So it is treated as a debt. Until we fund the minimum quantity of 400,000, and then it would convert to a royalty.

Okay. So, where would it appear in your accounts this quarter?

The royalty is on our balance sheet as a liability. We haven't really started, as we, as we sell the gold ounces, it is offset against the liability on the balance sheet, and it would not be reflected in the P&L, until we reach the 400,000 ounce minimum quantity.

When do you expect that to be?

John, that at the run rates of production at Palmarejo that would be estimated that would be in another six years or so.

Okay. Just as a follow up, do you have a detailed breakdown of how your capital is spent last quarter?

We do, John, yes, the $42 million CapEx for the quarter, was really driven mostly by Palmarejo obviously. For the three months ended June 30th, $32 million of that $42 million was spent at Palmarejo, $6.6 million at Kensington, $2.6 million at San Bartolome, and that get you pretty much there. There was just a de minimis amount spent at Martha and Rochester, less than $0.5 million each.

Okay. The mill problem at Cero Bayo, was that related, was that in anyway related to the previous problem?

I couldn't hear that, John Can you ask that again?

The sag mill problem during the quarter, was that related to any similarity with previous problem?

I think you, John are referring, it is Richard. I think you are referred to San Bartolome there.

Sorry. Yes, San Bartolome.

John, this is Don Gray. In May we were temporarily impacted by a mill motor issue, and that has been successfully resolved.

That's different from the bearing problem you had before?

Yes.

Okay. And perfect. Well, congratulations on getting the Kensington project moving along, and look forward to hearing the first gold pull there.

Thank you, John.

Our next question will come from the line of Pierre Vaillancourt.

Hi, this is Pierre Vaillancourt with Macquarie. It is -- I just wanted to ask if you could provide me with a little clarification on the difference between cash operating costs and the cash costs? Like at San Bartolome its 737 cash operating costs, so what makes the difference to take it up to 1064?

Yes sure, it is Mitch. It is really the difference between cash operating costs, cash costs are royalties and taxes.

Okay.

The place to get a better description of that difference is in the footnotes in the press release to the production table. You will see there's details explanations for what goes into both of those calculations, but it is mainly the royalty component.

I got you. So if you are looking at these mines, I mean looking at both -- obviously -- at Palmarejo, you are still ramping up, but you will get to steady state by year-end. So what is next year look for both of these mines in terms of steady state production and cash costs?

We have stated the run rate at Palmarejo is about 9 million ounces of silver, same for San Bartolome, but we had in the goal at Palmarejo is about 110,000 on a run rate basis. And we have not put out any kind of mine by mine operating costs or cash costs estimates, but with these new mines, that trend overall company wide on the cash cost will decline.

Right. Okay. You have been fluctuating quite a bit at San Bartolome, and I mean is it safe to say that you can look to improve on what you did this quarter? Or is this, is this fairly representative of what you can expect?

Well Don Grey mentioned we reached design capacity there in June and July, Pierre So my expectation is that we will continue to see cost improvement,now that the operation has reached those levels, and certainly we will continue to be driven to achieve that.

Okay, so can you talk about the costs that you achieved in those months?

Well, in terms of -- this is Mitch. The full-year, as we said in the press release operating costs at San Bartolome are expected to be right around $6.50. And as we said through the first six months of the year, and they were just a tad over $7, so that kind of gives you a sense of where we expect costs to be in the third and fourth quarters.

All right. Okay. And -- now you sold Broken Hill -- is Endeavor also for sale, or how do you see that?

Pierre, I think you have seen as a consequence of that sale that Coeur continually looks at our assets, and in view that we have our major mines coming on stream, our portfolio is getting some increased attention.

So it sounds like it is not a core asset.

Well, I think we have on obligation to maximize value for shareholders.

Okay. Thanks very much.

Thanks.

Your next question will come from the line of Jorge Beristain.

Hi. Good afternoon, gentlemen. It is Jorge Beristain with Deutches Bank Just wanted to follow up. Do I understand correctly you are not giving explicit unit cash cost guidance for Palmarejo at this point?

Hi Jorge. It is Mitch here. We have not done that in terms of looking forward on -- really any of -- an asset by asset -- cash cost perspective.

Could you give me a ball park looking forward, unit cash costs both pre and net by-product, net of by-product say for 2010.

We haven't put anything out like that publicly, and I guess we will be looking at that more closely as we go into the flooding season during the second half of the year. But no guidance on that at this time.

Okay. When will Broken Hill be deconsolidated?

As June 30th because it was the last period.

Okay. So by third quarter you will have the cash in the bank for that asset sale?

Yes, cash is in the bank. We've received the funds.

And in terms of your -- maybe just refresh us here, with your latest basic and fully diluted share count estimates for the third quarter looking ahead, what numbers we should be using?

In terms of looking forward on that, that's not something I'm in a position to do. I would be happy to have Karli follow up with you on that. I think in the release itself, we talk about where we are as of August 4th, on a basic, outstanding basis of 75.

75 share.

Fully diluted?.

About 80.

80, Right at 80, Jorge.

Great. Thank you.

You bet.

Our next question will come from the line of Chris Lichtenheldt.

Good morning. Thanks for taking the call. First -- unless I missed it -- I don't know if you have changed the production guide for Palmarejo --- 5.3 million-ounces; is that right?

Yes. That's right, Chris.

Okay. So if if we look -- I think 9 million ounces a year implies a run rate of somewhere around 2.25 million ounces each quarter, so it looks like you have to sort of be producing a bit ahead of that, in back half of this year to hit that 5.3, is that still a number you are reasonably comfortable with?

First, from a Company perspective, the first quarter, the second quarter represented the initial period there at Palmarejo, and we do expect to see dramatic increases in production in the third and fourth quarter.

Right. Okay. Thanks. My next question, just the royalty at San Bartolome looks to have roughly doubled from the first quarter. Is there something unique going on there? In this quarter? I think it was just around $3 million, then it was over $6 million this quarter, if I am not mistaken.

No, it really, Chris just depends on where we are mining, and the royalty rates by area. So, it is nothing.

Okay.

Nothing unusual or unexpected from the Company's perspective.

So it shouldn't necessarily remain at this higher level?

Yes, it will continue to bounce around from area to area. I don't know if you have anything to add to that?

No, I think that's true, Mitch is that it depends on the area we are mining from and the type of material.

Lastly as it relates to the deal, the Franco deal at Palmarejo, is there still a completion payment coming at some point, do you have some idea as to when that may be coming, and how much it might be worth, at this point?

It's a 90 day completion test where we have to meet certain production criteria, and we expect that to be completed in the second half of the year, that's relates to 317,000 shares of Franco-Nevada stock. You can do the math from there.

You expect to monetize that when you get those.

That's right.

Great. Thanks a lot.

(Operator Instructions). Our next question will come from John Tumazos .

Congratulations on the progress. Could you explain a little more the delay between, since June 22nd and in terms of the Army Corp of Engineers advancing Kensington. I am a little confused as to how our government works and why the Supreme Court ruling didn't expedite the resolution.

John, these are procedural time lines set forth in the rules of the court. And it has been a completely orderly process as expected, or not as expected, as I mentioned we actually saw the injunction dissolved more timely by the Ninth Circuit Court of Appeals than they could have had they exhausted all of the days that were allowed under the procedural rule for the dissolution of the injunction. I indicated to you at this point that the Corp of Engineers has basically an administrative function left to issue the letter that just says resume at Kensington.

Thank you, Dennis. Congratulations.

Thanks, John.

Our next question will come from the line of Mike Curran.

Good afternoon, guys. I'm interested in San Bartolome and the gold recoveries in the mid to high 80s. I really I think longer term was looking for much lower recoveries sort of in the high 70s. Is this a surprise or part of the plan and then you will see recoveries sort of drop off with grades in future years?

Hey Mike just to clarify did you mean San Bartolome or you said.

Sorry, I am not sure what I said.

That's okay. You said gold recovery.

Sorry. Yes.

So silver recoveries at San Bartolome.

Yes.

Don, do you have any comment you would like to make about that? We did reach our design capacity our plans I mentioned to you in June and July, and clearly approaching steady state there, but Don do you have anything else to add in terms of percentage recoveries.

No, I don't have anything else to add, the recovery is, is good now, and the plant is running at design capacity.

So you think you can maintain those mid to high 80s going forward?

The, it always depends on your grade recovery, on your grade recovery but right now, but those are the recoveries we are running now.

All right. Thanks.

Our next question comes from the line of [Brian Quest].

Hi guys, just looking at the depreciation for Palmarejo and wondering is that a function of the inventory build, and the start up of the mine, or is that going be quite high going forward as well?

It is definitely related to the ramp up, as we see that level out as we continue to ramp up.

And could you give us an idea of dollars per ounce run rate going forward?

I think it ends up being somewhere around $4 or $5 an ounce.

Great. Thanks a lot, guys.

Yes.

Our next question is comes from the line of John Bridges.

Hi, Dennis. Just a follow up on Palmarejo again, do you have a mix of underground and surface? Have you started the underground yet? Is that going be relatively stable, or are you going to halt between the two sources?

Richard?

Yes, Dennis. I can answer that. Hi, John. Mining operations are producing at expected production rates and grades, and that's both from underground and the open pit?

How much is from the pit and how much underground.

We are getting about 40,000 tons a month from underground, and the balance from open pit. We are going to ramp up with the underground when we start stoking in August .

Okay. So it is going to be steady state with that. or is it going depends on where you are in pit?

Both the underground and open pit, we expect to be in steady state, once we start the underground, we expect the tonnage to be steady and also from the open pit.

And what is the difference in the grades from the two different sources?

I would have to get back to you on that.

Okay. If you could I would appreciate it.

Okay.

Thanks, guys. Good luck.

Thank, John.

We have no more questions at this time. Do you have any closing remarks?

We would like to thank all of your interested investors for joining us on today's second quarter results call. As you have heard, these are exciting times at Coeur, and our management team and employees are totally focused on achieving the benchmarks in our strategic plan that we have set forth to you throughout the year. And we look forward to reporting to you the results of the third quarter. Thanks again.

This does conclude today's conference call. You may now disconnect.