Eldorado Gold Corp (EGO) 2013 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the Eldorado Gold Corporation third-quarter 2013 results conference call. This call is also being webcast and is available on the Eldorado Gold website at www.EldoradoGold.com. I will now turn the meeting over to Miss Nancy Woo, please go ahead.

Thank you, operator. This presentation includes statements that may constitute forward-looking statements or information. Any forward-looking statements made and information provided reflect our current plans, estimates, and views. Forward-looking statements are information which include all statements that are not historical fact, are based on certain material factors and assumptions, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in or suggested by the forward-looking statements or information. Consequently, undue reliance should not be placed on these forward-looking statements and information.

The information contained in our annual information form and in our annual quarterly Management Discussion and Analysis available on our website and on SEDAR identifies factors and assumptions upon which the forward-looking statements or information are based on and the risks, uncertainties, and other factors that could cause actual results to differ. All forward-looking statements and information made or provided during this presentation are expressed, qualified in their entirety by this cautionary statement and the cautionary statement contained in our press release date November 8, 2013.

I will now turn the call over to Paul Wright, CEO of Eldorado Gold.

Thank you, Nancy, and good morning, ladies and gentlemen. Welcome to Eldorado Gold's third-quarter financial and operating results conference call. Joining me in Vancouver this morning are Norm Pitcher, President, Fabiana Chubbs, chief financial officer, Paul Skayman, Chief Operating Officer, and of course Nancy Woo, Vice President of Investor Relations.

We will follow the customary format with Norm providing a rundown on the operations performance for the quarter as well as outlook to year-end. This will be followed by Fabi's summary of the financial results, and then we will open up for questions.

We are very pleased to release the quarter's results. Our mines have delivered another strong quarter with production of 204,620 ounces, this being a record quarter for the corporation. Average cash costs, $472 an ounce or slightly better than plan. And this performance supports our ability to retain our year-end guidance of 745,000 ounces at a cash cost of $520 an ounce.

The quarter was generally productive and supports the progress of the company's business on multiple fronts. Early in September, our exploration update highlighted successful drilling campaigns at Tanjianshan, White Mountain, Efemcukuru and Jinfeng where intercepts were generally well above average reserve grades at all of these mines.

Later in the month, we announced significant resources increases at both Certej project and the Olympias mine. With the M&I resources at Certej now totaling approximately 5 million ounces.

On our various permitting watches, progress is mixed but generally positive. In Turkey, Kisladag remains on track to receive its EIA approval for the expansion prior to year-end 2013.

In China, we are increasingly confident that, in the first quarter, we will be able to provide guidance as it relates to the schedule to complete the outstanding permitting for Eastern Dragon.

In Greece, at Perama, we remain optimistic that we will receive the EIA for the Perama project prior to year-end. Norm will, in his commentary, provide some additional color on our development activities, specifically for Skouries, Olympias, Certej, and [Tiezed].

With that, I'll hand over to Norm.

Thanks Paul, and good morning everyone.

Starting with the operations, as Paul mentioned, we had a very solid quarter for production, and I'd like to thank and congratulate our operation teams throughout the world for their contribution to this strong performance.

Let's start in Turkey. Kisladag, we produced 84,762 ounces at a cash operating cost of $324 per ounce. Capital expenditures at Kisladag were $33.3 million, the majority of which was for mining equipment, general construction, and capitalized waste stripping. [Anita], the strip ratio was 1.5-to-1 for the quarter. That was consistent throughout the year and we expect about the same in Q4.

Efemcukuru produced 22,438 ounces at a cash operating cost of $551 per ounce. Higher gold sales during the quarter of 26,410 ounces was the result of some inventory from Q2 production being sold during the quarter.

Capital expenditures were $5.3 million, mostly on underground development and planned upgrades.

The backfill plant continued to perform well, as does the underground crusher and ore bin set up.

On to China. At Tanjianshan, we produced 28,179 ounces at a cash operating cost of $377 per ounce. Capital spending was $4.2 million. Tanjianshan is having an excellent year this year with gold production above the year-to-date target and cash costs well below.

At Jinfeng, we produced 40,212 ounces at a cash cost of $684. The capital spend at Jinfeng was $15 million, which included open pit capitalized waste and underground mine development. The open pit produced a little over half of the mill feed in the quarter and we expect about the same ratio in Q4.

At White Mountain, we produced 19,287 ounces at $713 per ounce. Capital spending there was $9.1 million split between underground development, exploration, tailings lift and mine equipment. Backfill delivery continues to improve, and we have also started using development waste drop to supplement backfill.

At the Olympias tailings project, we treated 185,000 tons of tailings and produced 8,742 ounces of payable gold during the quarter.

As for the non-gold assets, at Vila Nova in Brazil, we produced 190,000 tons of iron ore at a grade of 63.2% iron and sold 127,000 tons at a realized price of $74 per ton versus cash operating costs of $50 per ton.

At Stratoni, we produced 14,586 tons of concentrate and sold 12,096 tons at a realized price of $820 per ton versus cash costs of $547 per ton.

Onto development. At Skouries, we continued with our works on the plant site and clearing of the tailings dam footprint. Work on Skouries decline progressed well with 115 meters completed during the quarter.

At Olympias, during the quarter, we continued work on the main decline as well as underground rehab and new development in the main May mine, advancing the main decline 55 meters and new development 270 meters. Water infill slowed development in the main decline, and we have implemented a grouting program to help us deal with this.

We released an updated resource during the quarter which increased measured and indicated gold ounces by 10% and inferred ounces by 122%.

I was on site at Olympias last month, was very encouraged by the progress they made there underground. We've done additional geotechnical work which indicates that the rock which will host the majority of the development at Olympias is essentially freestanding, which will have a positive impact on mining costs going forward.

At Certej, we did a lot of geotech work and rock characterization during the quarter to support pit design and plant foundations. We also continued with the metallurgical testing on both flotation and pressure oxidation. All this work will be inputted into an updated prefeasibility study. As with Olympias, we did an updated resource during the quarter which showed a 13% increase in measured and indicated ounces and a 26% increase in inferred gold ounces.

At Tocantinzinho, we have been focused on optimizing both capital and operating costs as well as site infrastructure, especially the access road and power line.

Perama Hill we basically finished preliminary engineering, did additional engineering to support procurement of long leadtime items while we await approval of the EIA.

At Eastern Dragon, work focused on preparing key provincial documents for some submittal to NDRC, and we remain actively engaged with both provincial and central governments on the PPA application with a strong support from the Canadian government.

Finishing up with exploration, during the quarter, we completed 27,500 meters of drilling in our exploration projects in Greece, Romania, Turkey and China. And we are on track to complete a total of about 150,000 meters by year-end.

In Greece, in the Chalkidiki, district, drilling continued throughout the quarter at Piavitsa. The current drilling is designed to complete the first pass coverage over a 2.5 kilometer strike length of the mineralized Stratoni fault zone.

In Romania at the Certej project, the final resource definition prelim was completed early in the quarter and results were incorporated into the updated resource model. Exploration activities in Romania are now focusing on three nearby exploration licenses, all of which were acquired early in 2013. Drilling is scheduled on these from mid-to-late Q4.

In Turkey at Efemcukuru, mine exploration continued during the quarter on the north and south ore shoots and the Kokarpinar vein with 16 drill holes completed.

Over to China, at the White Mountain mine, underground drilling commenced on a northern extension zone where 10 holes will be completed by the end of the year. Preliminary results imply that gold mineralization is continuous between the northern extension and the main deposit.

At Tanjianshan, drilling continued on the Jinlonggou Bridge and West Wall target areas and at the high-grade Qinlongtan North target. High grade intercepts are important from all these target areas and drilling was completed early in Q4.

With that, I'll turn it over to Fabi.

Thank you Norm. Good morning everyone. I will go through the financial statements, highlighting changes in significant accounts.

Commensurate with the balance sheet, we ended the quarter with a cash and cash equivalents balance of $725 million compared to $870 million at the end of 2012. The decrease in cash balance was the result of cash generation of operations net of usage of cash for dividend payments, $35 million, and the capital program, $119 million. The $12 million decrease in accounts receivable and other relates to the collection of essential (inaudible) Stratoni concentrate shipments receivables.

During the quarter, we have recorded an impairment in our investment in associates due to the decline in their fair value. This resulted in a decrease of $12 million in investments and in net income.

As reported in Q1 this year, a $125 million increase in the deferred tax liability balance relates to the increase in the Greek income tax rate from 20% to 26%. The balance of the $70 million increase relates to the impact of a weaker Turkish lira against the US dollars.

Moving on to the income statement, we reported profit attributable to shareholders of the company of $36 million, or $0.05 per share, for the quarter, compared with profit of $76 million or $0.11 per shares in the third quarter of 2012.

Revenues for the quarter of $287 million are higher from a year ago due to higher gold sales volumes, which increased 28%, offset by a lower gold price, a 20% decrease in gold prices.

Production costs increased by 12% compared to third quarter in 2012, reflecting commencement of production (inaudible).

On the income tax expense, the effective tax rate for the quarter was 50% compared to a rate of 31% in the third quarter of 2012. This is a result of the impact of the weakening Turkish lira against the US dollar and the tax basis of our Turkish tax asset. As a ways of a reference, a 10% change in the exchange rate for the Turkish lira will result in approximately a $7 million assessment in deferred taxes. And the 10% change in exchange rate for RMB will result in $16 million assessment. Other factors affecting the effective tax rate during the quarter include tax foreign-exchange gains on US dollars, cash balance held by our Turkish subsidiaries, as well as withholding taxes in China.

On the statement of cash flows, during the quarter, we generated cash flow from operating activities before changes in nonworking capital of $105 million compared to $111 million in the third quarter of 2012. The main uses of cash relate to our capital program, $119 million, and dividend payment of $35 million.

Those are my comments on the financial statements. I will turn the call back to Paul.

Thanks, Fabi, Thanks, Norm. Operator, we'll open up for questions please.

(Operator Instructions). John Bridges, JPMorgan.

Good morning, Paul, Nancy, everybody. Congratulations on the results, great again. I just wondered -- you've completed drilling at Piavitsa. what are you seeing there? Is that delivering on your hopes based on the anomalies, and does it stretch into Stratoni?

We haven't -- I'll just jump in here for a second and then Norm will follow-on. We haven't completed the drilling. We started the drilling mid last year and first program I think put about just under 2 million ounces of inferred resources on the books this year. We got started around midyear and have been following up both sort of infilling in areas that we previously drilled as well as testing areas on strike. But that's the limit of my geological expertise, so I'll hand over to Norm.

I don't know that much more. (laughter).

It's still early days there, and there is a gap of I guess a couple of kilometers between sort of the last -- the end of Stratoni mineralization proper and where we started drilling at Piavitsa. We've sort of extended more to the west from there than trying to go back towards Stratoni because we are actually going to be sort of drilling Stratoni starting on that end.

It certainly does look like an extension. It's on the Stratoni fault. It looks like an extension of Stratoni type mineralization with the mineralogy changing a little bit. We've done about 2.5 kilometers of strike so far, and it's still open to the west.

There's obviously -- it's not a sheet of paper. It's not an exact plane. There's some cross-vaulting there, and that will be something we're going to have to sort of figure out as we go along.

It's possible that we will have some additional results prior to year-end in advance of our updated resource estimate early next year.

We're not getting big surprises in the drilling.

Okay. And then, I know, in this environment, everybody is focused on costs. I know you were trying to save money on diesel with the electric power. There's a lot of talk about putting gas into diesel engines and using that as a fuel. Any opportunities for that in your part of the world?

Not that I am --

Not that we are aware of, yes.

Okay, good. I appreciate it. Many thanks and congratulations again.

Dave Katz, JPMorgan.

Good morning. I was curious. When you look out next year, how do you expect that to differ from what you have been seeing recently, specifically at Efemcukuru and Jinfeng?

As you appreciate, this is the time of the year where we are preparing budgets and plans for next year, and I'm afraid you'll have to wait for our guidance which typically occurs very early in the new year.

Okay. And then --

We don't see dramatic changes.

Dramatic changes from what you've seen more recently?

From what we're doing here. I think, in summary, Efemcukuru this year has started to deliver in a manner we expect it to do. I think we are seeing good reconciliation with the orebody. We are seeing good performance in the metallurgical plant. We have to continue I think to work on the costs and that's really what's going to be the focus going into 2014.

Okay. And then at Eastern Dragon, going back to the permitting issue, what do you think is -- I know you said you expect an update relatively soon. But why do you think that there is a change that will enable you to move forward, given that it's taking so much longer than was originally expected?

I think it's largely, in the end, a move to take the permitting out of the Robinson into central NDRC has turned out to be a positive step. The ironic thing is if we could have done that a couple of years ago, we would probably be done by now. But in any case, this is -- the province was, at that level difficult, to deal with. We're finding better cooperation at NDRC in Beijing. You've got a huge amount of focus from the Canadian government on this now. And I think now we are more into just into a process that there is going to be defined steps that we can articulate better in the first quarter that will be easier to follow, easier for us to follow, easier for us to explain as well.

Okay. And as you move forward, you don't think there's any risk that the province will attempt to re-exert control in any manner?

No. We don't -- when we originally started going to NDRC, we had wondered would we (inaudible) going back down to the province because a lot of the documents were provincially prepared. But no, it will not be going back down to provincial.

I think, at this point, if anything, the province is quite relieved to have this in the hands of NDRC.

Excellent, thank you.

Cosmos Chiu, CIBC.

Good morning, and thanks for hosting the call. I've got a few questions here. Maybe first off on Olympias, just to confirm, you were able to sell your Olympias concentrate, right? Just it's not recorded as sales, given that it's just noncommercial production.

That's correct, yes.

Were you able to sell pretty much the entire production of 8500 ounces sort of?

Yes.

At terms that were sort of similar to what you've guided to in the past?

Yes, that's correct.

Okay. And maybe if I can talk -- ask a question in terms of your acquisition of Glory Resources. Is there any kind of synergies that we should be aware of? And in turn, does this help you with the overall permitting at Perama Hill, do you think?

I think you have to appreciate the transaction hasn't closed yet.

Yes.

So we are suitably circumspect in our comments. But I mean, I think, clearly, the project is proximal to Perama. It is -- I would characterize it as a very high-quality, high-grade resource on a very prospective land position. Because of its proximity, you could actually use the synergy word, and then you may realize that. But I think it's a bit premature for us to be speaking any more on that topic until the transaction closes.

Okay. And then, Paul, since I have you here, I know that you've never been a huge fan of this new measure, this AISC, or all in sustaining CapEx. But have you had a chance to maybe take a punt and see what that number could be for Eldorado in Q3? I guess I should do my job and I should calculate it.

Yes, you should do it, Cosmo. (laughter)

Look, we will be -- I mean we are members of the World Gold Council and certainly when you see us reporting in 2014, we will be doing our best to try to put apples out there. Hopefully the rest of the field is full of apples as opposed to apples and oranges. I think it's an environment yet where there's still some dust to be settled before I think the industry and investors and analysts really get what they want from this. And that's sort of a standardized, accepted number. Obviously, you've got the SEC who has their own views on this, and the dust has to settle a little bit. But look, we are not shy about reporting our costs in any form, because I think clearly, as a relatively low cost producer, we will show relative -- we will show well relative to the rest of the sector.

Great, good to know. And that's all I have. Thanks for the call.

Patrick Chidley, HSBC.

Hi Paul, Norm, everybody. Just a question on Certej. Can you maybe give us an update on, a bit more detail on the status of the permits there? And I just wanted to get your views on which environmental protection agency is the one that's giving the permit, and if the amended permit is in application and what the sort of status of that is?

Look. We have a project that is permitted and was permitted in July of last year by the Timisoara ministry of environment, or the regional ministry of environment. And what was permitted was a project that would operate at 3 million tons a year based on the existing reserve. Obviously, through our exploration efforts, the resource has expanded. We have been looking critically at the project to look at how we could potentially enhance the project, given our views on the metallurgical characteristics as well as of increased resource size.

Presently, we are coming to an end of extensive test work with Sheriff Gordon looking at the potential opportunities to swap to a pressure oxidation. The test work is being done to date has been a very encouraging in terms of from both a cost perspective as well as a metallurgical response. If there is to be an amendment requested, it's likely to be done, again, locally to essentially look at replacing call it the Albion box with a Pox box.

Okay, so --

We don't view this as being problematic because the reality is, in Europe, significant attention is paid to what is best available technology and pressure oxidation fits into that category and, frankly, has a number of fits to it from an environmental perspective. (multiple speakers). We haven't actually submitted an amendment as it relates to any change in -- significant change in design.

Okay, so just for my information, the regional ministry of environment is the jurisdiction, that's the --

For this size of project, yes. I think it's a project that is about 5 million tons a year ago to go to central. But we don't have any aversion -- for us it's not -- this is not -- there is no sensitivity as to whether we are dealing in Bucharest or whether we are dealing with Timisoara. We are actively engaged in discussions in Bucharest with the National Environmental Protection Agency as well.

Okay. Just a quick technical question there on in terms of your flotation work for that. What sort of grade of concentrate would you be able to get? Were you planning to sort of be able to get there in terms of ounces per ton?

You're talking Certej. Because we are looking at pressure ops, we are not looking at a high-grade concentrate. And we've concentrated on generating material suitable for pressure oxidation. At the moment, we are not looking at a marketable product that we would sell into the market as a concentrate.

Okay.

But the a concentration ratio, the upgrade from head grade of, say, 1.6 to what would be the float grade for roughly?

It would be in the order of sort of 5 to 8 grams per ton. And we would produce a concentrate that's double or more of that, but lower recoveries I guess.

I see. Okay. Thanks. Just in terms of a follow-up on that other question on Olympias concentrates, could you remind us what kind of terms you've got to get in terms of payability there, or you are achieving?

I think the way we've expressed it, because you know the sensitivities in terms of contracts, is we've expressed in terms of dollars, resulting dollars per ounce, and the guidance that we've given I think we are comfortable with. If anything, the payability terms are probably supported a little bit better than what we've expected at the beginning of the year. I think we've also been encouraged by, frankly, the market for the concentrate to being a little more competitive than we originally anticipated. So, there's no negative surprises on the pricing.

All right, thank you. And just one final question on Kisladag. The expansion, you say you're going to get the permits by the year-end. Can you just remind us what the size of that expansion is? I know you sort of reduced that earlier in the year, but I was wondering if getting the permits might change the view.

The expansion permit is for 25 million tons to the crusher and 8 million tons of [runamai] for a total of -- I think it's 35 (multiple speakers). Yes.

We basically carried on with the full EIAs original in visage, Patrick. We haven't amended it post our decision to sort of defer, delay, or postpone, whatever you want to call it, the full expansion. So the result in the EIA will give us quite a range of opportunities, including obviously if we choose to implement the full expansion as originally envisaged to do that as well.

And also that's sort of the short-term, we can maximize whatever we can get to the crusher and we can add some (inaudible) and additional run-the-mine material onto the pad.

Okay. So it's really more about capital constraints that you wouldn't go for the big, bigger expansion, which will be permitted.

Yes, it's just cash and cash flow. It's not about the permitability of the project. It's not about the attractiveness of the project in absolute terms. It's just in relative terms to the other projects that we have and where and how and when we deploy capital.

Conceivably, for some reason, I don't think that's going to be the case, but if we were delayed in an untoward manner, say, for Perama, that may very well prompt us to relook at reactivating the Kisladag expansion earlier. That's sort of the decision-making at work.

Got it. Perfect. Thanks very much.

Anita Soni, Credit Suisse.

Good morning guys. Congratulations on a solid quarter. That's from Mike, because he's got his little bet going on analyst congratulations. And thanks, Norm, for answering my strip ratio question. It was just one boring question. Jinfeng, the open pit tonnage grade and strip ratio there and then the underground tonnage and grade.

I don't have the -- yes, open pit tons were almost 200,000, 195,000. Underground tons were 173,000. Grade to the mill was about 3.6%, and I think it's about 3% out of the open pit, and a little higher than 4% coming out of the underground. The strip ratio in the pit was high. If you take out the capitalized waste, we are still sort of 10-to-1 in there.

Okay, thank you very much.

Kerry Smith, Haywood Securities.

Paul, last quarter, you talked about the water issue and the decline at Olympias, and then you talked about it again this quarter. I'm just wondering if it's impacting costs at all or your rate of advance, or if it's just really kind of more a nuisance.

No, look. It has affected all of the above. It's affected rate of advance and when you've got crews standing by, then it costs you money, no question about it.

And --

I think what we found is, to be blunt, our contractor wasn't geared up to deal effectively with this. And we've had to sort of get involved to come up with obviously appropriate support with a plan to deal with the water.

Okay. Is it a water issue that you think will persist for the entire development of the ramp, or is related to some particular zone in the rock that you can maybe seal off as you work through it?

It looks like it's localized right now. And sort of our -- the initial hydrogeologic models are sort of telling us that, no, this isn't going to be a long-term issue. But it's certainly giving us some problems where we are right now. The main thing is to get ahead of this to start with, because once you blast into it and you've got water going, it's a lot more difficult to deal with, obviously, than if you can deal with it ahead of time.

Right, okay. And then just I think I heard you correctly, Paul and Norm, just on Perama, you're still expecting to get the EIS approval by year-end. Is that right?

That's right.

Okay. And then so I'm clear also on Eastern Dragon, you're expecting in Q1 to get some sort of a timetable or a schedule from the NDRC. Is that correct?

I don't think NDRC is going to give us a timetable or schedule, but I think, at that point, we're going to be able to articulate to the market what our view of the timetable is, because we will be getting very close to having all of the documents done that we had to switch from provincial to central type documents. There are about four altogether, and the big one was the EIA/feasibility study.

Okay, so you'll have more clarity then in Q1 --

Yes.

-- and you'll articulate that to us? Okay, great. And then just last question. On Skouries, what has been the CapEx spend so far to date on that project? I think, if I remember, the number was like $380 million of total capital. I'm just curious how much has actually been spent so far?

Project-to-date or year-to-date?

I guess project-to-date, sure. Just related to the $380 million if I have that number right in my head.

Something in the order of $40 million.

Okay, spent so far.

Paul Wright. (multiple speakers)

And then just roughly, how might that spend be percentagewise even through to 2016, roughly, (multiple speakers) capital?

I think next year and 2015 are big spend years, clearly. What you're doing right now is really largely surface clearing, cut and fill, prep work to start on foundations and serious steel erection and equipment installation. And that doesn't get underway until next year. So, again, wait for our guidance. I know this is the time of the year where everyone wants to get ahead on guidance, but it's going to go up significantly next year.

And you will update in your guidance your CapEx --

Oh, absolutely. As we do every year, we will give you project-by-project operating and development CapEx.

Right. Okay, perfect. Thank you.

Salim Ben Mansour, BMO Capital Markets.

Thanks for taking my call. My first question on Efemcukuru, given the grades this quarter a bit lower than expected, I just want to know the reason for this quarter and what you have going forward in terms of grades at Efemcukuru.

I don't think the grade was really unexpected for the quarter. Yes. No, our grade was right around 9 grams, which is what we had -- very close to what we budgeted.

Okay. That's what I have too. And a similar question on Jinfeng. I know you had that (inaudible) going this quarter being a pretty good quarter compared to expected. Are you expecting the same going forward in the near term in terms of grade?

I think you see the same. Yes, next quarter, you're going to see the same level of production out of the open pit and underground that we are seeing this quarter. Then you'll have to wait for our guidance for next year.

But look, the open pit is now getting to -- is significantly contributing to mill feed again. I think, as we continue down, the strip ratio should be coming down as we get deeper, deeper into the ore zone. So, it should be relatively consistent for a while.

Thank you. The last question on the effective tax rate. It's also your view going forward was this was a one time where you expect to maybe have a higher-than-expected tax rate going forward.

The [spending] tax rate, I always look at it at around 28% to 30%. But then you have to add the impact of the Turkish lira, so as I said, its moving up 10% will give you $7 million of impact in dollars. So it depends what you predict the foreign exchange to do, how currency will move. That effective ratio will change. So you have to look 28% to 30% and then look at the currency and that couple of percentage and more depends on how they move.

Okay, thank you very much.

Andrew Quail, Goldman Sachs.

Hi guys. Thanks for taking my question and congratulations on a strong quarter. One question is on the dividend. What do you see -- look, obviously I'm looking at your link to the gold price. What happens if the price is lower than sort of $1251? Does that mean we are going to 0 div, or is that it's sort of (inaudible) around [$25] an ounce?

We'll decide that if and when it happens. (multiple speakers) everything else we have going on inside the company.

Okay, so it's not exactly a calculation like the rest of the stuff?

It is what it is. We basically showed the numbers down to that level. Below that level, we will look at and assess whether or not a dividend is payable and at what rate.

Okay. Thank you.

We have no further questions at this time. I'd like to turn the meeting back over to Mr. Paul Wright.

Thank you, operator, and thank you, everyone, for attending and looking forward to our next quarterly call. Thanks, operator.

Thank you sir. The conference call has now ended. Please disconnect your lines at this time. Thank you for your participation.