Franco-Nevada Corp (FNV) 2010 Q4 法說會逐字稿

Good morning. My name is Andrea and I will be your conference operator today. At this time I would like to welcome everyone to the Franco-Nevada Corporation fiscal 2010 results conference call. All lines have been placed on mute to prevent any background noise. (Operator Instructions). I would now like to turn the call over to our hosts, Mr. David Hartwell, Chief Executive Officer. You may begin your conference sir.

Thank you operator. Welcome to the Franco-Nevada conference call. Especially a big welcome to the Gold Wheaton shareholders who just last week became Franco-Nevada shareholders. I believe you will see from this presentation that this will be a truly winning merger.

For this call, our comments are supported by a PowerPoint presentation. It is available on our website. You'll find on the right of our home page under Latest Presentation. On page 2 of that presentation, as always, there is an upfront cautionary regarding our use of forward-looking statements. I ask you to keep this in mind, as we will be making many such forward looking statements today.

You'll then see on slide three of the presentation that we have a larger than usual agenda for this call. Sandip Rana, our CFO, will start off with a very brief review of our Q4 and 2010. I'm very proud of those results. He's also going to give a heads-up on some of the changes coming with IFRS, including the way we are now going to report our numbers and present our outlooks.

As mentioned, we have just closed on the merger of Gold Wheaton. Paul Brink, our Senior Vice President of Business Development, is going to speak also very briefly on that acquisition and what it brings to the Company. Then I'm going to try to actually be as brief to talk about the outlook for Franco-Nevada, and give you a sense of why we are so enthusiastic.

With us here in the Franco-Nevada boardroom is most of the executive team. We'll all be available to take any of your questions. With that, Sandy, please tell us about 2010.

Thank you, David. As you have seen from yesterday's earnings release, Franco-Nevada had a very strong fourth quarter and full year 2010. If you refer to slide 4 in the presentation, the chart illustrates the key financial measures management uses to evaluate performance. From the colored boxes you can see that the Company achieved record results in numerous non-GAAP and GAAP metrics, both for the quarter and the full year.

Some of the key highlights for fourth quarter, include recording the Gold Quarry top up for the minimum attributable to Franco. This was over 16,000 ounces in 2010 compared to 11,000 ounces in 2009. Higher Goldstrike NPI in Q4 2010, which was up $7.1 million over Q4 2009. Higher production from the Palmarejo Gold Stream, and initial payments from some of our smaller royalties, including Admiral Hill, Duketon, Hislop and Holt. These all contributed to royalty revenues being 57% higher than Q4 2009, which in turn resulted in a 61% increase in free cash flow.

On an adjusted net income basis, the Company achieved a 9% increase to $24.8 million versus $22.8 million in Q4 2009. The Company recorded higher depletion expense and increased tax expense for the quarter due to the composition and source of where the royalty revenue was derived.

I would like to point out that for 2011, the Company will no longer be recording the Gold Quarry top up in Q4, rather the minimum will now be recorded throughout the year, which management believes better reflects the timing of when the minimum is actually earned.

All the points mentioned earlier for the strong fourth-quarter performance also applied for the full year; however, the largest impact for the full year 2010 were two components. One being higher commodity prices, which benefited our portfolio across the board, and having 12 months of production from Palmarejo compared to half a year in 2009. This was an increase of $26 million in royalty revenue year-over-year.

Turning to slide number 5, as you can see from the royalty revenue by commodity slide, the Company's overall royalty revenue has steadily increased over the last three years. Precious metals revenue has increased significantly. In fourth quarter of 2010, 81% of royalty revenue was from precious metals.

But more so the gold component of royalty revenue has increased significantly during this timeframe. Gold royalty revenue is up 50% year-over-year and comprises 74% of overall royalty revenue. Royalty revenue overall on a full-year basis was up 44% to $205.4 million.

Turning to slide number 6, back in March 2010, the Company provided initial guidance on expected royalty revenue for 2010. The range at the time was $155 million to $170 million. At that time, gold prices were $1,100 per ounce. In addition, the Gold Quarry minimum was estimated to be approximately 14,000 ounces.

Management updated guidance in November 2010 with a new range of $190 million to $205 million. Actual royalty revenue for 2010 came in just over $205 million. Coming in at the higher end of the range was due to a couple of points. Firstly, the Goldstrike NPI for Q4 2010 came in higher than anticipated, and Palmarejo production exceeded the minimum monthly amounts in the fourth quarter of 2010.

What is great to see is the scalability of our business. As you can see from slide number 7, royalty revenue and free cash flow have moved in an upward trend in unison over the last couple of years, while the Company has maintained a fairly constant cost structure. In addition, this growth has occurred without a significant dilution to our shareholders.

This scalability will be further evidenced by the Gold Wheaton transaction. It has the potential to add $100 million per year in free cash flow for the Company, with minimal ongoing G&A cost additions.

As you can see on slide 8, the geographic royalty revenue profile continues to be very strong, with 94% of royalty revenue being from North America. David will speak later to the impact of the Gold Wheaton transaction on our geographic profile.

Also please note that the diversification by asset is also expanding with royalty revenue being sourced from more and more properties, resulting in the Company being less economically dependent on certain royalties as it once was. This will continue to grow as our advanced stage royalties begin to provide revenue. As an example, the Company expects Tasiast to begin paying in Q2 2011. With the addition of Gold Wheaton it is expected that no one asset will generate greater than 18% of revenue going forward.

Slide 9 provides a reconciliation of net income from 2009 to 2010. The positives for the year include increase in mineral royalty revenue, which is a result of a combination of higher commodity prices; higher production from royalty properties; and new properties coming on line; increasing oil and gas revenue; as well as the Company is benefiting from gains realized from the sale of certain equity investments.

On the downside, the Company had increased foreign exchange losses due to the strengthening Canadian dollar. As the Company holds a large US dollar cash balance in its Canadian entity, although on a US dollar basis there is no real loss, for accounting purposes, an FX loss occurs due to the strengthening Canadian dollar and the accounting -- and the fact that the Canadian entity has a Canadian dollar functional currency.

Also, 2010 had higher income tax expense, which is due to higher income from both the US and Mexico, which both have higher income tax rates than Canada; increased depletion and depreciation, which coincides with the higher royalty revenue earned during the year; as well as other increases in minor expense categories.

On slide 10, you can see that the Company continues to have the resources to complete additional transactions. At the end of 2010, available capital was $788 million, which included the credit facility of $175 million. At present the Company still has in excess of $500 million of available capital. In addition, based on our revenue profile, the Company should be able to generate $250 million per year in free cash flow going forward.

Slide 11 provides an update on the current capital structure of the Company. There are currently just over 126 million shares outstanding. The increase from the end of the year is mainly due to the 11.6 million shares issued as part of the Gold Wheaton transaction. On a fully diluted basis, including the warrants inherited from Gold Wheaton, the share amount would be 147.5 million.

With respect to the Gold Wheaton warrants, the former $10 warrants are still each exercisable at $10 per warrant, but to acquire one whole Franco share approximately 6.43 warrants need to be exercised, which equates to $64.27 per Franco share.

With respect to the $5.00 Gold Wheaton warrants, each is still exercisable at $5.00 per warrant. But again, to acquire one whole Franco share approximately 6.43 warrants are needed to be exercised.

On slide number 12, with respect to IFRS, the Company will be moving to IFRS effective January 1, 2011, with comparatives for 2010 also being presented under IFRS. There's a number of accounting policy changes and elections which will impact Franco-Nevada, but the most significant change will be how we account for derivative assets.

Currently, Palmarejo and Hislop are treated as derivative assets, and thus the fair market value changes are recorded in revenue. Because of this accounting treatment under Canadian GAAP, the Company implemented the non-GAAP measure of royalty revenue.

Under IFRS, the Company will no longer be accounting for Palmarejo and Hislop as derivative assets. There will no longer be fair market value adjustments recorded. It will be will be accounted for on the same basis our existing royalties and stream interests. Please note that we will be recording depletion expense on these assets going forward.

Royalty revenue will no longer be a metric used by the Company. Instead, management will be providing guidance on revenue going forward which represents GAAP revenue and net revenue which is a non-GAAP measure.

As seen on the chart on slide 13, management has broken out the components of revenue and net revenue. Basically, revenue will correspond to revenue on a statement of operations and will be gross of state and provincial commodity taxes, gross of the $400 per ounce purchase payment for our stream ounces, and gross of the costs related to our oil and gas working interests. Net revenue, which is a non-GAAP measure, will be net of these items.

Management believes net revenue allows a true comparison of relative cash contribution by asset, by commodity, geography, and form of interest. In the appendices to the presentation you will find reconciliation of all the non-GAAP measures referenced for 2010.

Now I will pass it on to Paul who will discuss the Gold Wheaton assets recently acquired.

Thanks Sandip. The Gold Wheaton transaction added streams on five new mines to our portfolio -- three gold and PGM streams in Canada and two gold streams in South Africa. Quadra FNX operates the Morrison, the McCready West and the Podolsky mines and sells the ore directly to Vale. The stream agreements supply to 50% of the gold, and importantly that's the gold contained in the ore.

First Uranium operates the Mine Waste Solutions operation in the Ezulwini mine. Both of them are gold and uranium plays in South Africa. And we now have streams on 25% of the gold at Mine Waste Solutions, and 7% of the gold at Ezulwini.

Two key items are that three of the operations are currently ramping up production -- Morrison, Mine Waste Solutions and Ezulwini, adding substantial growth. And with the addition of the Sudbury assets our PGM exposure is now greater than our oil and gas exposure.

I'll touch on each of the five new mines and provide their outlook for the year. Starting with the Sudbury mines, Morrison is a fairly recent discovery. It's a very high-grade copper, gold and PGM deposit. It's got limited resources defined to date, but has many high-grade intercepts at depth, increasing grades at depth, and we're confident that it will be a very long-live mine.

It's currently ramping up production, and in 2011 it will produce 30 million to 40 million pounds of copper. And we expect 13,000 to 16,000 gold equivalent ounces attributable to the stream. Quadra FNX is actually targeting an increase in copper production to 45 million pounds of copper in 2012, once the shaft has been fully rehabilitated. And we should see a proportion of the increase in the precious metal production.

There are also other infrastructure options in the area that may allow even higher production levels in the future.

McCready West is part of the same Levack complex as Morrison. It's a steady-state operation with a production rate of about 775 tons per day. It's expected to produce 18,000 to 22,000 gold equivalent ounces attributable to the stream in 2011.

Under FNX exploration was curtailed. It was curtailed in Sudbury with the financial crisis and also with the Vale strike. And Quadra FNX has now increased exploration spending, and we're expecting the resource life at McCready will be increasing.

Podolsky operates at about 1,200 tons per day. We expect 15,000 to 18,000 ounces of gold equivalent production attributable to the stream for this year. You can see from the long section in the slides the 2000 deposit is shown where most of the current mining takes place. But also behind that, you can see the larger lower-grade Grey Gabbro structure. When the infrastructure was put in place at this mine it was with a view to being able to exploit both of the structures. And if the economics pan out on Podolsky, Podolsky could be another long-lived contributor.

Mine Waste Solutions. MWS is a dump retreatment operation. It is near Klerksdorp in South Africa. First Uranium has invested now more than $450 million, constructing three gold modules and a uranium module with the ability to process a very substantial 1.8 million tons per month.

Two of the gold plants are currently operating. The third is now physically constructed and commissioning currently. The production rate is expected to step up from the 1.2 million tons per month up to 1.8 million tons as soon as May this year.

32,000 ounces of gold are expected to be attributable to this stream. That's for the First Uranium financial year which begins April 1 of this year.

We think the timing is excellent to get exposure to this asset. It has very low operating risk. It has got a 15-year life, and we're getting exposure just when it's ramping up to full production. The stream structure not only gives us leverage to the gold price, with no exposure to operating cost, but also it is US dollar denominated so there's no direct exposure to South African Rand.

Lastly Ezulwini. Ezulwini is the smallest exposure in the package. It's the redevelopment of the Western Areas mine, which is just to the north of, and mines the same reef as Gold Fields' South Deep mine. The Upper Elsburg Reef, which both of them mine, has multiple horizons that can be mined in the same package, and so is amenable to bulk mining. Western Areas produced historically 12 million ounces.

First Uranium has invested more than $275 million on the property, and that includes a new gold and uranium plant. While Ezulwini has had its troubles in startup, we believe that it is stabilizing and that there will be steady production increases going forward. The First Uranium guidance for their 2012 financial year is 132,000 ounces of gold production. And it's expected that production will more than double over the next six to eight years. The stream has a minimum provision for this year, that is the 2011 calendar year, of 19,500 ounces.

So, in summary we believe that the timing is excellent to the get exposure to the Sudbury and South African assets. Much of the capital has been spent on these operations and the development risk has been removed. We are in a great position now to benefit from the production growth. David?

Thank you, Paul. I'd like to move to slide 20. And so Sandip has given a good review of our financial performance, and Paul about the new assets that we have. Now I want to talk about what it looks like putting it all together going forward.

Slide 20 graphic reminds us that our financial results, if you put oil and gas aside, have been generated by essentially owning 37 of our over 200 mineral assets. Those 37 assets are great long-lived assets with good operators. And the financial results that Sandip has shown has already demonstrated the value and strength of those assets.

What I want to focus on is what's going to come in the next five years. You can see in slide 21 that the names of the some 23 assets under advanced assets that we believe have a reasonable potential to start generating steady-state revenue to Franco-Nevada within the next five years.

One way to create value for shareholders is to buy ounces and then have the gold or silver price goes up. The other way is to own interest in properties where new discoveries are being made and new projects are being built. That is wealth creation that can work even in periods of flat or declining gold and silver prices. We believe that the largest value accretion in the resource business comes from the drillbit.

On slide 22 I want to highlight two of those advanced assets that demonstrate the optionality and value creation that comes from the drillbit. When we did our IPO three years ago, not a lot of attention was paid to these two pipeline assets. We have a 2% royalty on both Tasiast and Detour, and we have not yet earned a cent from either of them.

But now let's look at the potential. Today, over 48 million resource ounces have been defined between the two projects, and the drills are still going. For Franco-Nevada's 2% that's almost 1 million ounces to our account -- 1 million ounces free of capital or operating costs. They are essentially free ounces.

$3 billion is not now committed to build or expand these mines. If everything stays on track, our first revenue from Tasiast starts this year, and Detour starts in 2013. By 2015, they could be generating $60 million more per year -- $60 million or more per year and last for over 20 years. And there is expansion potential on top of that. All of this at no cost to Franco-Nevada. That we believe demonstrates the tremendous power of the drillbit, and also the optionality of the assets that we already own in the portfolio.

But it doesn't stop there. And on slide 23, there are a list of another 21 projects at various stages. Some projects are just starting production, or soon will. Others have permit indoor financing hurdles yet to come over. If we took all the operator projections at face value, these assets would generate to Franco-Nevada several billion dollars net to this Company.

But we are running a portfolio and have to constantly risk-adjust outcomes. We don't want to comment about specific projects, but we believe on a risk-adjusted basis this portfolio is worth at least $1 billion on top of the values that we've shown you at Tasiast and Detour.

So, putting all this together, what is our outlook for 2011 and beyond? Slide 24 summarizes our 2011 outlook. As you can see, we're now using the GAAP revenue outlook numbers that Sandip explained to you. The details of each of these assets was in our press release, so I'm not going to walk through the individual items. But if you take away one slide from this presentation today it's an excellent slide 25.

Here's a longer-term perspective of our performance. Our historical results now have been restated to the common GAAP revenue metric that we are now using. You can see that in 2010 we were 48% above our 2009 numbers on the same basis. You can also see that our midrange of our 2011 guidance is coincidently another 49, or almost a comparable increase to what we achieved over 2009.

Then we have projected out to 2015, when most of our advance projects are mostly ramped up to full production. On a risk-adjusted basis to the best of our ability, we see GAAP revenues for this Company approaching close to $500 million.

I believe that when we look back from 2015 that Franco-Nevada will have demonstrated an 8-year track record of 18% compounded annual growth rate, with no down years. Franco-Nevada has always been seen as an institutional value stock, and who knows, maybe someday growth investors might see an opportunity in this Company.

I believe this growth profile is even better than most of their projections that you see because, one, these are revenues that are not from one or two project developments, but potentially up to 60 different operations. On a portfolio basis, the risks are very well-balanced and spread, and the probability of achieving the target is higher.

Two, that this growth is being delivered at no cost to Franco-Nevada. We don't have to hire project teams, engineers, or geologists. Three, we believe our business is absolutely scalable in that we can keep adding new revenue sources without a material increase in our overhead.

And four, most important, we have no direct material capital costs, operating cost concerns or commodity currency risk. In fact, our business model thrives from inflation, as our revenues grow and our costs remain mostly fixed.

In terms of understanding what drives our Company going forward, slide 26 gives you a perspective. Here we put together the 2010 net revenues from both Franco-Nevada and Gold Wheaton together. This is a reasonable basis to understand what will be driving Franco-Nevada in 2011.

The key takeaways you can look at is by geography, 11% of our revenues are potentially coming from South Africa. But for perspective, 86% of our revenues are still coming from North America. We have still one of the most secure portfolios in the business.

By commodity, gold represents still two-thirds of net revenues, but what is now unique, as Paul pointed out, we have 20% of our revenues coming from PGM. Platinum and palladium is now larger than our oil and gas business. Both platinum and palladium revenues are coming from six operating mines, five of which are in North American. This is a very unique and valuable PGM business

And thirdly, by asset type, our revenues are now coming 60% from more leveraged assets, such as stream and profit-based royalties. Yet we have the comfort of the downside protection of a large base coming from gross royalty revenues or NSRs.

So, finally on slide 27 is a demonstration of our confidence in these assets in this portfolio. Franco-Nevada has boosted its monthly dividend to $0.04 US starting in July 8, a 60% increase. This is an annual payout of over $60 million a year. We regard this is roughly a 20% pay out of our free cash flow. You will also note that we've converted to a US dollar dividend. We have almost everything in place for a possible US listing. We'd like to get through the IFRS conversion first and then decide if this is the right thing to do.

Slide 28 is the closing slide. In summary Franco-Nevada is debt-free. We have $500 million in available capital to do more deals. We are demonstrating growth and growing our dividends from one of the most secure portfolios in the resource business. And it's a business model that actually benefits from inflation. Our model for this year to gold investors is why own a gold ETF? So, with that, the team here at Franco-Nevada will be very happy to take any questions.

(Operator Instructions). David Haughton, BMO Capital Markets.

Thank you for the update. I've got a question with regards to the integration of Gold Wheaton. Firstly, think about the depreciation, do you have a sense as to what kind of depreciation those assets might have on an annual basis going forward?

Not at this stage. We are working on the fair value allocations, and so for Q1, once that exercise is completed we will have a better idea.

Okay. Just so you are aware, my guesstimate is around about $60 million per annum.

The other question, also with regards to those assets, will you be reporting the five different revenue streams separately -- the three from Sudbury and two from First Uranium?

It's a good question David. Actually we haven't decided on our first-quarter presentation. It's is probably a good idea. It's just our tables are getting so large we can't fit them onto one page any longer so, we might provide that detail. We'll just have to see how much it fits.

But, I think it's a good idea, and we'd be happy to do it for the three mines. Also what we want to do is separate gold from PGM, because we want to do a separation of where we're getting revenues from gold and PGM. So we are already going to be splitting it out. So, if we do it, the three minus separately that's about six different mines. So I just want to save on paper if I can. But we'll figure that out. It's a good suggestion.

And also for clarity, the revenue will be gross revenue. And I presume that the $400 per ounce or each go forward equivalent will be expressed as an operating cost?

Yes, it will be a part of cost of sales, yes.

And I guess for Paul, the First Uranium assets have had something of a checkered past. How confident are you of the entities meeting the targets going forward?.

David, first on Mine Waste Solutions, we are very confident on that operation. It has got two modules operating steadily. It's a low-risk type of operation, and expect that the third module, which is an exact replica of the second, should operate exactly at spec, so we're very confident in that operation.

With Ezulwini, it is a more difficult operation. It's obviously deep-level gold mining, and there are always risks there come with that, although we've got a great level of confidence in the team. We think that the projections that they've put out are much more achievable than what was out there before.

So we expect that with that operation, and you always can have issues, but we expect that for the most part they are behind the Company. And we've got a lot of confidence in the management team making it work going forward.

And the last one, I guess, for Sandip, would be looking at tax. For 2010, given that you've split out the adjustment numbers, what kind of tax out of your total of $33 million is associated with those adjustments, because you state them as a net of tax figure?

Can you repeat the question? Can you repeat the question?

When looking at the way that you break out your abnormal items, if you like, you express them as a net of tax figure. I'm just wondering what the tax component of that would be, so that I can then understand what the tax would be on the underlying business as opposed to those abnormals.

The most significant one is the fair value adjustment for the derivative assets, which would be at a tax rate of 30%.

Okay, so that is -- so you've expressed it at 19.4 on an after-tax basis so, I gross that up by 30%?

Yes.

All right, and going forward for the underlying business, what tax rate would you suggest that we should be thinking about?

I'll give you a range, right now projections are between 20% to 25%.

Okay. That's somewhat lower than what you've experienced this year then.

Yes. Because just the acquisition of Gold Wheaton, just the way the tax structure is with all the stream assets, very favorable tax rates.

All right, thank you very much.

Anita Soni, Credit Suisse.

The questions have all been asked and answered adequately. Thank you.

Cosmos Chiu. CIBC.

I've got a few questions here. David, you've touched on Detour and Tasiast, but another royalty that's coming up is Ahafo. Can you maybe touch on that? I guess when you acquired that royalty back in 2009 the thinking was this could start generating revenue for you in 2012. Is that still kind of the thinking behind it?

It's a very good point you make there, Cosmos, because when we -- they only produced -- right now our royalty kicks in once they reach that hurdle of 1.2 million ounces. And as of the end of 2010, they were up to I think -- I am just trying to remember -- 941,000 ounces. But they have only actually produce from a royalty ground about 55,000 ounces. So we were expecting a bit more last year so it would be closer to that 1.2 million ounces.

I think one of the things that is happening is because they've got that exploration portal going quite aggressively from the bottom of the Subika pit, it has really kept them from doing any more mining around that pit.

So we know -- I think they have put in, I think, it's like a $60 million exploration budget on the Subika potential super pit and underground operations. So, we can see that project going forward, but we're definitely less certain about the timing of that in 2012.

But our sense is that project has still got the potential for 9 million to 10 million ounces. And it's just that we can't be as certain of the 2012 start date. So if I had to make a guess right now it would be 2013.

My other question is on Gold Quarry. In terms of the minimum royalties, has the number of ounces been finalized? Because looking at past years, I guess, it got finalized later on during the year, sometime in Q2. I am just wondering if the 11,200 ounces for 2011 has been -- is that the final number?

As of this stage we don't know what the final number is, but the minimum we do know is the 11,200 ounces. We will find out shortly as to what Newmont's expectation is.

We are making some inference there, Cosmos, because what we have to do is see the final reserve and reports and what is in stockpiles because those are some of the triggers. But we are inferring that because we had the pit slide last year, the minimum royalty protected us because there was still quite a bit of reserves and stockpiles related to the project.

We believe they used up those stockpiles during the year because they couldn't mine from the pit. And so I think it's safer for us to be conservative. And I think that at least 11,200 ounces is absolutely accurate. We don't expect it to be lower, but we can't be confident we can guide you to anything higher.

Great, that is all I have. Thank you.

(Operator Instructions). John Doody, Gold Stock Analysts.

Good morning gentlemen. Congratulations on a great year, and thanks for the dividend increase. Two questions. Guadalupe at the Palmarejo site, that has been talked about in the past as a potential second mine and mill. Is that still in the range of possibilities or do you see it now as an add-on to extend the life of the basic mill there?

The current plans that Coeur have around that are that they are going ahead to develop Guadalupe, and the plan is that that would transition in with Palmarejo. And so there would be a period of transition where you're operating from both mines, and then it would also extend the life of the total operations from that Palmarejo property.

Okay, so you wouldn't expect it to be a production increase then at the site?

They are still evaluating their different production profiles, I can't yet say if it will just maintain it or increase it.

The second question has to do with the Prosperity. Have you seen their new plan that they've resubmitted for permit approval? And do you have any confidence level -- obviously we would like to see it done, but is there some expectation that this will be easier to permit than the prior one?

The key change in the plan is obviously that in the prior plan the existing lake on the property would've been used for storing waste rock, and the new plan now preserves that lake. That lake was the key point of contention and is a large issue for the First Nations. So the new plan goes a long way to addressing those concerns. So, we think, yes, it has got a much higher probability than the previous plan.

Okay, great, thank you.

(Operator Instructions). There are no further questions in queue. I turn the call back over to the presenters for any closing comments.

Thank you operator. Just on our website today you'll find our posted financials and MD&A. Even more important, we slaved over a newly expanded and detailed Annual Information Form. And I think what you'll find is that you're going to get much more detail and appreciation of the many assets that we just don't have the time to talk about when we have the 340 of them in the Company. I urge you to take advantage of downloading that today. It will help you better understand our Company.

Finally, our first-quarter earnings release will be on May 12. And as this is the first set of results under IFRS, we are going to be hosting an expanded conference call the next day at 10 AM on May 12. This will sort of be in lieu of our regular analyst day. We feel it's better to give you the explanation on IFRS immediately when you get those numbers. So we look forward to catching up to you then. Thank you very much.

This concludes today's teleconference. Thank you for your participation. You may now disconnect.