NovaGold Resources Inc (NG) 2010 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to the NovaGold first quarter results conference call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Rick Van Nieuwenhuyse, President and Chief Executive Officer. Please go ahead, sir.

Thank you, Rebecca. Good afternoon, ladies and gentlemen. Thank you for joining us on today's call, where we will review our first quarter results for 2010. I am joined here with Elaine Sanders, our Vice President of Finance and acting CFO. I will start the conference call just quickly reviewing some of the highlights from the quarter, and then I will ask Elaine to go over the specific financial results for the quarter, and then she will turn it back over to me and I will give you a corporate overview and update on each of our specific projects.

I will of course be -- we both will be making forward-looking statements, so I invite you to read our disclaimer on this page.

So starting with significant results in 2010 first quarter we purchased 100% interest in the Ambler copper-zinc-lead-gold deposit in Alaska. We are very excited about this project. It is a 30 million tonne, 4% copper, 6% zinc with very good precious metal credits. We will be doing additional exploration and engineering and environmental work on that this summer. We see tremendous exploration upside in this project.

We appointed Mr. Gil Leathley as a senior advisor to the Company. He reports to myself. He is a retired chief operating officer for Homestake Mines, retired when that company merged with Barrick. He had literally decades of great industry experience, open pit, underground mining operations, construction as well as operations, and he is certainly bringing a tremendous amount of expertise to our projects as we continue to advance them.

We have made some additional management changes. Greg Johnson and Don MacDonald left during the quarter. We are on a hunt for a new CFO, and of course Rhylin Bailie has stepped in as Manager of Corporate Communications, and in fact she has hit the road running. She is in New York today at the New York Resources Conference.

We are very pleased to say that we settled the US and Canadian shareholder litigation. There was $28 million paid by our insurance company, so there is no money out of NovaGold that went to settle that lawsuit, or excuse me, those two lawsuits.

We also announced a significant reserve update for our Donlin Creek project, an additional 4 million ounces of reserves, 2.2 million crediting to NovaGold's account. We amended the Calista lease, Calista of course is the Alaska Native Corporation that owns the Donlin Creek project. The lease basically extended the time period. It also added significant lands around the project.

Of course, as it has grown over the years, we needed more and more space so the Calista lease was amended to accommodate that. We are also evaluating the potential for a natural gas line to come into the project to supply power, and I will give you a little more detail on that in just a little bit.

We also just recently here completed a $175 million equity financing with Paulson & Company and the Soros Fund. We are very pleased to have these two very high profile fund managers investing in NovaGold.

And a final update I will give you then is on our Galore Creek project, where yesterday we had a press release announcing the initiation of a prefeasibility study on our Galore Creek project. We have a new mine design, and again I will talk more about that a little bit later. But the prefeasibility study of course will give us updated capital cost estimates, as well as requirements for permitting and construction timelines.

Targeted completion for that study is the first half of 2011. Sorry; that is a mistake on that slide. We didn't correct that.

I will turn the meeting over now to Elaine to give us the highlights on our financial results. Elaine?

Thanks Rick. Good afternoon, everyone. Our share capitalization is currently issued outstanding 220 million shares. We have about 14 million options and rights outstanding. 54 million warrants outstanding, for a fully diluted of 288 million. There is a potential for $80 million to come into the Company on the exercise of the warrants.

Highlights from our Q1 financials include a cash balance of just under CAD18 million, a working capital deficiency of CAD1.4 million. Our loss for the period was CAD18.7 million. We received cash from financing activities of CAD0.2 million. We expended CAD3.6 million on Donlin Creek, and CAD4.3 million total for all of our projects.

If we take a look at the financing that we did in March which was after our quarter end, our cash balance would be approximately CAD193 million.

The single largest change in our balance sheet was the result of the Ambler purchase. We issued 931,000 common shares at the time, for a fair value of approximately $5 million. This increased our mineral property assets by CAD27 million, and we booked an additional $12 million due January of 2011 and January of 2012, on our balance sheet. The amounts ended up as short-term liabilities and long-term liabilities.

For our project expenditures and budgets for the year, Donlin Creek expenditures in Q1 was approximately $4.7 million. That money was spent on optimization studies and performing permitting activities. The entire budget for 2010 for Donlin Creek is $28 million; that is on a 100% basis. $14 million would be NovaGold's share. There is a supplemental budget pending, if the decision is made to revise the feasibility study to include the gas line.

For the Galore Creek project our Q1 expenditures totaled CAD1.4 million, and that money was used to update the mine plan. The budget for 2010 is CAD8 million total for care and maintenance, plus an additional CAD12 million for prefeasibility study work. And that money is 100% funded by Teck Resources, so we don't expect to have any expenditures on Galore Creek during the current year.

For the Rock Creek Project, we expended $6.5 million in the first quarter, and the total budget for 2010 is $17 million, targeted mostly for environmental work.

On the Ambler project, our 2010 budget is $1.5 million, slotted for community engagement, environmental and engineering studies.

And I will pass this presentation now back to Rick, to talk about the outlook and our projects.

Thank you, Elaine. I think as most of you know, our projects are located in North America, United States, Canadian jurisdictions, more specifically, Alaska and British Columbia. Of course these are friendly and safe places to work, and I think most of our shareholders appreciate that.

NovaGold offers sort of a maximum or a huge leverage to gold and copper, and probably to a lesser degree silver.

This slide outlines our reserve basis. Obviously it has increased now with the increased contribution from the updated reserve in Donlin, over 17 million ounces of reserves, plus 14 million ounces of resources in gold. 150 million ounces of silver resources, and 9 billion pounds of copper. The lion's share of these, of course come our Donlin Creek and Galore Creek projects, both of which are 50/50 partnerships or joint ventures, with Barrick in the case of Donlin, and Teck in the case of Galore. The Ambler project is 100% owned by NovaGold. We also offer huge trading liquidity, we are trading well over 3 million shares a day between our New York and Toronto listings.

We have had great success in our exploration efforts and we continue to do so, and that will continue to be a mainstay of the Company. We have added on average about 2 million ounces of gold a year, and I think we are on track to continue to do that.

Having world-class projects I think requires world-class partners, and I think we have done that with our partnership at Donlin Creek with Barrick, of course they operate 26 mines worldwide. They have a great triple-A rated, or A rated balance sheet, and they certainly bring a huge amount of bench strength to the partnership, in developing what I think will be one of the world's larger gold mines.

And of course, in the case of Galore Creek, Teck, Canada's largest diversified mining company, a tremendous amount of processing and metallurgical experience around projects worldwide. So we are very pleased to have both these great companies as our partners.

Financing is, of course, another important aspect of advancing projects. We have done well over the years in that arena working with such groups as Citigroup, JPMorgan, and RBC. Most recently we brought $175 million of equity financing with John Paulson's group, Paulson & Company, and the Soros Fund -- one of the Soros Funds, for a total of $175 million.

So that brings our cash on hand somewhere in the neighborhood of $190 million, as Elaine was speaking of. With the exercise of the warrants the Company has available to it about $250 million or $260 million. And based on our current obligations with our current project portfolio, that is enough for a good two, three years of financing for the projects.

I would like to now just jump over and outline just specifically some of the things we are doing on each of the projects now. Of course Donlin Creek, just highlighting again the increase in the reserves of 4 million ounces. And just by way of note, last year's reserves were done at a $725 gold price, this new reserve is done at an $825 gold price, so just a $100 increase in the gold price has resulted in this 4 million ounces of additional reserves.

There was a minor amount of drilling on the east side of the deposit that contributed to some of the ounces, but most of those actually were in the inferred category. So a very, very strong deposit obviously to be able to accomplish that.

The feasibility study has been completed in 2009. The slide shows the layout of the site. For such a huge deposit it is a fairly compact site, with the waste rock facilities and tailing storage facilities located fairly immediately adjacent to the open pit and the plant facilities. We have got a lot of room here again. Again, just reminding you this is all private land owned by the Calista Native Corporation, which of course we have under lease.

Elaine mentioned the reference to the gas line, and the potential budget that we are contemplating there. We expect to make a decision on that in fairly short order.

Gas has really become an important new avenue for us to pursue, based on some changes that are taking place in Alaska, but also the things that are changing in the market for access to liquid natural gas on the international markets. It is basically just as easy to buy liquid natural gas now as it is diesel fuel on the international markets, and this has really opened up some new opportunities for the project.

Gas delivered to the site would cost about 50% of the cost of diesel on site in order to produce power. So rather than looking at $0.20 per kilowatt hour power costs, you would be looking at roughly $0.10, $0.11 per kilowatt. So since about 25% of our costs to produce an ounce of gold come from power costs, you can see that there is a huge opportunity here to reduce our overall operating costs to produce an ounce of gold.

We will make a decision here as I said, it will probably be within a month. We are basically just finalizing a budget to look at the feasibility of putting a gas line in here. You can see the map there that shows the route from basically from the north side of Cook Inlet all the way out to the project site. We will be looking forward to updating you on that as that progresses.

As far as value drivers for the project, of course, the reserve update now is completed. The feasibility study with our 25-year mine life producing I think it is about 1.2 million ounces of gold over that entire 25 years, the first five years about 1.6, this will be one of the world's larger gold mines. Operating throughput 50,000 to 55,000 tonnes per day. Fairly standard pressure oxidation CIL type of a processing facility. Barrick is certainly one of the world's leaders in pressure oxidation.

Capital costs, it is a large project, it is a lot of ounces. The capital costs of $4.4 billion according to the feasibility study, which translates to about $132 per reserve ounce, which is pretty much on the lower end of the scale in terms of capital costs per ounce of new mining projects around the world. And just to reiterate this is a well-defined resource and reserve.

There's over 1,700 drill holes, 370,000 meters, and there were a few articles that inferred that the resource was poorly understood, and I don't think anything could be further from the truth with that amount of information and data that has been collected on this project.

This is a district, we know the deposit will get significantly larger with future exploration but really the focus right now is on optimizing the project, and on permitting; and of course, those are the main activities that we are doing right now. As Elaine said, the project budgets, it as little shy of $28 million, and will likely as we said be putting a supplemental budget through for that gas line study here within a month.

Moving over to Galore. Again a 50/50 partnership with Teck. Project located in northwestern British Columbia. You can see the substantial resources there in copper, gold, and silver. This is quite a unique deposit, very large in scale, and quite good grades for all three metals.

We have completed what we called an updated mine plan, using more recent prices for metals, which has obviously resulted in a new mine plan. It is depicted here in terms of the facilities, these are all located in the Galore Valley, and this is a significant change from our previous plan. So we will mine in the valley, we will have crushing and waste rock disposal in the valley, and then we will convey the ore out of the valley through a tunnel, out to a mill site, and then deposit the tailings at an adjacent tailing site, again both located on the roadside of the overall facility.

This next map shows the overall site facilities, and this is significantly different from the previous design where all the facilities were in the Galore Valley. We will have a shorter road and a longer tunnel in this scenario. We will be doing a significant amount of geotechnical work on the tailing site, the mill site, and the tunnel alignment this summer, along with some additional road work to continue to advance the road there.

This work is completely funded by Teck. It is roughly a $20 million total budget. I think it is a little over $12 million for the prefeasibility study, and the balance for care and maintenance; and most of that care and maintenance is actually directed towards advancing the road. We will be pleased to report on the results of the prefeasibility study hopefully in the early part of 2011.

On our Rock Creek project, a relatively small project that we do own 100% of near, in northern Alaska just outside the town of Nome. This is a project of course that is 90% completed. We are very pleased that we have made huge progress on the water management issues that the project faced when we had to bring this, put this project on care and maintenance a little over a year ago.

We are pleased that we announced that we have got the water management system I think under control, and things are looking very good there now. We will be looking at go-forward alternatives this year, and hope to be looking at updating you on that in the third or fourth quarter of this year.

Just a couple of photos here that show some of the work that has been done over the year here, in terms of water, managing storm water. You can see the large construction at the tail end of one of the drainage ditches that basically just redirects a lot of the water that was going on to the mine site before, and we are basically getting rid of that water before it enters the mine site, along with water behind the tailing facility that we have built injection wells, and a number of other systems to eliminate that water. So we have made huge progress there and I think the Rock Creek team specifically really needs to be commended for a tremendous effort there over the year.

On our Ambler project, this is a really exciting project. You can see the metal count here, there are very few deposits in the world of this caliber. And you can see by the map location there it is in that same belt of very --- very prolific belt in the Red Dog belt of rocks there, located just adjacent to the Red Dog deposit which is obviously the world's largest and highest grade zinc mine.

Again Ambler is very high grade. We have over 30 million tonnes outlined in the volcanogenic massive sulfide deposit. 4% copper, 6% zinc, plus the gold and silver credits there. It is equivalent to about an 8% copper equivalent.

We have got a modest program planned for this year with some exploration work continuing, ongoing community engagement, along with environmental baselines and engineering studies. We are basically looking at what do we need to do to complete a feasibility study here in terms of surface and potential underground access work.

The next slide shows some of the highlights of the drilling, the last drilling done in 2008. You can see why we are excited about this deposit with the kinds of intersections of base metals and precious metals here. 10 to 30-meter intersections of anywhere from 3% to 6% copper plus the other metals. So again, a very unique high grade deposit.

And it is a whole belt of deposits. Arctic, the 30 million tonnes are outlined at the Arctic deposit only. There are historic resources identified on a number of other projects, or prospects throughout the belt there. So we will look forward to the continuing exploration efforts there, and advancing that project through to feasibility study over the next few years.

These are all very substantial projects. Again all in North America. When you put these projects together, you are looking at a Company that has the potential of producing well over 1 million ounces of gold a year, and approaching 0.5 billion pounds of copper on an annual basis. That is our share of potential production.

And these are again from mine lives that were 20-, 25-year-plus mine lives, and all located in districts that have huge exploration upside. So these are the kind of projects we like to be involved with. Again we are pleased to have our well-known and great partners like Teck and Barrick helping us advance these projects to production.

I think NovaGold offers unparalleled value and leverage to gold in particular. We are well financed. We are working in great places, places that are very friendly to mining and very familiar with mining, and we will continue to advance and grow these projects.

I will now turn the call back over to Rebecca to set us up for a question and answer period.

Thank you. We will now take questions from the telephone lines. (Operator Instructions). Thank you. The first question is from Stephen Walker. Please go ahead.

Great, thank you, operator. Good afternoon, Rick. Just a couple questions. First of all, on Rock Creek, the remediation work that is being done now, the $17 million to be spent in 2010, I guess is this sort of final work as far as reclamation for potential closure, or will this allow you to restart at previously forecast levels at some point in the future?

I guess what I am getting at here is two things. First of all, how much more money would you expect to have to spend in just ongoing care and maintenance over the next several years, if there is no production decision made? And I guess at the right gold price and the right operating scenarios, can you start the mine up again?

Yes, Steve. Just to address your question there on the work that has been done is all, basically it is on managing stormwater and managing the water that had accumulated behind the tailing storage facility, so it is not for closure. We haven't made the decision to close the mine at all.

We are -- at the same time we have been doing all the work at sites, we have also engaged a group of consultants to look at what it would cost to restart the mine, what it would cost to close the mine. So those are studies that are ongoing. But we have not made a decision on whether to restart the mine or to shut it down. So basically, the permits are all valid and the work that has been done is to manage the water to a much better degree than had been done before.

And if we had to estimate the care and maintenance costs on an annual basis, 2011 going forward?

Again, we haven't made a decision to put the project on care and maintenance for the future. And that is part of our ongoing study now. So we will probably be able to report that to you in, actually it will be Q4 of this year.

But I guess the $17 million should take care of the previous issues with respect to water management that have been identified?

That is correct. That is our total budget for this year so that is, you could call it a care and maintenance budget, but it has -- a significant component is our investments in ditches and stormwater control features, along with some additional work on the tailing facility itself.

Could you again, just quickly review what the news flow might be like with respect to exploration, either drilling from Donlin Creek, or I guess the prefeasibility for Galore will be third/fourth quarter, but could you remind us of the potential news catalysts we could see here in 2010?

We will be making a decision on Donlin Creek, the gas line, I will call it a feasibility study optimization. That will be probably within the next month or so here. So then beyond that we have the Galore Creek prefeasibility study will be completed we are saying in the first half of 2011, not '10. Sorry, that was a mistake in the presentation we missed. And that will be a full-blown 43-101 type of a prefeasibility study.

Then of course, we will have our updated work on the Ambler project that will be later, probably in the fall of this year.

Great, thank you for that, Rick.

Thank you, Steve.

Thank you. The next question is from Aditya Khandekar with RedChip Company. Please go ahead.

Hi, good afternoon. I am calling from RedChip here. A couple of quick questions for you on Donlin. When you mentioned the $4.4 billion CapEx estimates for Donlin, did that include the gas pipeline that you are planning to put in there?

No, the gas line, that feasibility study was based on transporting diesel to the project site, so it is a diesel-based number. The current study that we are contemplating, we haven't made a decision on, but we expect to shortly, because we are basically just coming up with the budget right now, the purpose of that study is to study at the feasibility level a gas line alternative.

So basically that budget will be used to study the gas line itself, all the environmental baseline, all the engineering work, along with the update of the site feasibility study, if you will, on the capital and operating costs for a gas-based scenario.

Got it. So till we get that feasibility study done, we shouldn't really be updating our financial models in terms of CapEx till we have kind of a firm number, or a revised estimate from your side. Is that correct?

That is correct. When we have that information, when the study is complete we will put that out.

Okay, excellent. In terms of the start date for the Donlin, or in terms of actual exploration and getting this into production, I mean, having pushed out to 2016, do you have any color on how that is progressing? Are we still looking at 2016 for production for Donlin?

Our timeline for Donlin is three years for permitting, and three years for construction. And so if we are going to update the feasibility study this year with this gas line, assuming that we make that decision, which I think I am pretty confident we will, then you add that six years to that. So you are still in that 2016/2017 timeline.

Okay. All right. Excellent. One or two more questions for you. In terms of you having raised $175 million, and congratulations on that, do you see any potential acquisitions, in terms of properties beyond what you already have today? Could you shed any light in terms of maybe strategy or schemes going forward on this large amount of money that you raised?

Certainly, that is a good question. We certainly have a lot going on, so I wouldn't say that we have a hugely active program looking for new opportunities. We have a lot going on. We have big projects, and we are spending significant dollars to advance those.

However, we are always opportunistic. We are working in districts where we do see opportunities to acquire other projects in and around those districts. And we will continue to be somewhat opportunistic. If we see something that we think we can really add huge value for our shareholders, we certainly have the ability both technically and financially to do that.

But I guess we are not out really hunting. We are pretty focused on what we have got on our plate right now.

All right. One last question. In terms of your share base on a diluted basis, you mentioned or your interim CFO mentioned that there were 14 million options outstanding. I had a lower number earlier than this. Somewhere around the 3 million level. Has the option pool gone up in the recent period? I just wanted to get a quick clarification on that.

Hi, it is Elaine. That number, the 14 million includes performance share units and director share units, so it is full in. So the number you have got for options probably did not include that. So we have got it all in.

Okay. And that is about 14 million options, right?

Options and rights, so performance share units and director share units.

Oh, okay. Got it. Okay. And any color in terms of the 54 million outstanding warrants, any color around if and when they could be converted? Do we have any view on that?

I am sure they will be. They are very deeply in the money, so I think it is just a question of whether it is next month or next year. We don't have any color on that. We can't provide anything further.

Thank you. That is all I have.

Thank you.

Thank you. The next question is from Mike Niehuser, please go ahead.

The question has sort of been asked. But on the information on Donlin Creek with the additional six years, what is the timeline for Galore Creek, assuming that the prefeasibility comes out affirmative, and you keep moving forward?

Sure, the logical timeline, again, I want to preface this by saying, this is assuming that you step from one decision to the next. So prefeasibility is in the first half of 2011. Again based on positive results you would go to feasibility study, you are probably looking at about an 18-month timeline for that.

While you are doing the feasibility study, we would be working on permitting, and we would be advancing the road, continuing to advance the road. I believe that we can, if we made the decision to complete the road it is something we could probably do in one year.

So you could be ready to start construction, in say, two years or two years from that date, sorry, from completion of the feasibility study and the permitting, assuming your permits were issued within an 18-month period, you would have about probably a three to four year timeline for constructing that project. And that is obviously something that the prefeasibility study is going to outline.

We believe that with the shorter road and the longer tunnel scenario, and mining in the valley and processing and putting the tailings outside of the valley, that we will simplify the construction timeline to significantly shorter than was in the previous scenario. So I am hoping that we will end up at around three years of construction, because again by then the road will be finished as well.

If I did my math right, that could come in before 2016 or thereabout, if everything proceeded as you might hope?

That is correct. I think a total timeline there of five years is fairly realistic from today, if again, assuming that you went from one decision to the next.

What kind of costs would it be to finish the road, if you were to do it in one season?

We don't have a feasibility level number on that. But we think it is probably on the order of $60 million. The road has been pioneered, and there is a significant amount of work that has already been done. And I want to emphasize that road wouldn't be completed, but you could drive a pickup truck in, and you could certainly drive materials and access in from a -- it would be certainly a construction road grade road.

So there is certainly additional work to do there, but we made a huge amount of progress over the last few years, on basically connecting the Galore valley to the rest of the world.

Now, that wouldn't include the tunnel, would it? That would just be the road, right.

That is correct. The tunnel is a separate, we consider that a separate item. We have not yet started the tunnel.

In fact that will be -- some of the work that we will be doing this summer is to decide where exactly does the tunnel go, the specific tunnel alignment. We will have some geotechnical work specifically working on that.

We pretty much know where we want to put the tailing facility. We will have a significant amount of geotechnical work on the tailings facility to estimate costs, and we will be looking at exactly where will the mill go. Will it go at the tunnel exit, or will it go right above the tailings facility, or will it go somewhere between the two. I think the mill site location is the only thing that really hasn't been fixed, but that certainly is one of the objectives of the studies that will be ongoing this summer.

Do you have a guess at what price for copper that study might be entertaining?

We haven't made a decision on that. I see lots of people using $2.00 or $2.50 copper, and anywhere from $800 to $1,000 gold price. So it is probably somewhere in that range.

So it is well above what the earlier studies were done a year or so ago then?

Yes. A lot has changed in terms of people's perspective on copper and gold in the last few years, and of course Galore has a significant amount of silver too that certainly won't go to waste. We certainly have had expressions of interest from a number of the silver off-takers for that metal.

And it is actually interesting. As the third metal on the list, it would be the largest in production at the levels we are talking about, 90,000 tonnes a day. You would be the largest silver producer in North America outside of Mexico.

Oh, go ahead, I am sorry.

No. Go ahead, sorry.

Well, I was going to, I lost my train of thought. I will come back to it in a second. But there was a question about exploration with Donlin and Galore. I was more interested with possible additional exploration, expanding the resource at Rock Creek.

And/or is your team looking, because you have had great success finding things. Are you still out looking? Besides acquisitions are you still out looking for big deposits?

We are always looking for big deposits. That is what we like to do. But as I said earlier, we have got a lot on our plate. We are really kind of focused on advancing the projects we have.

We have a significant, well it is a modest program at Ambler, but I think there is significant potential to add to our land position there, and we are working in that direction. We think there is excellent potential there for additional discovery. So I think you will see us working on that.

But we are always looking at things. We had a lot of things brought to us and so I won't say that we wouldn't look at something in addition, but we are certainly focused on what we have got on our plate right now.

I guess just one more question. I didn't mean to take so much time. But I guess with what the cost was with the Galore Creek years ago, with what has happened with prices of capital costs since then and with kind of refiguring the site, are you anticipating that there might be an opportunity for an overall lower in the aggregate cost of the project?

Absolutely. We think the new approach for the project, taking the mill and the tailings facility out of the valley, where we knew we had a lot of constraints, because it is a big project, and it is not that big a valley. But by moving the mill and the tailings facility out, we think that will simplify the overall construction, shorten the timeline.

And we also see that there has been a relaxation of capital costs worldwide. At the time we were looking at this before, and at the time we were under construction before we had a huge amount of activity in the tar sands. That has quieted down somewhat. It is not quite as hectic as it used to be.

And of course we don't have the Olympics to compete with any more. We had a great Olympics here in Vancouver, but they were certainly causing pressure on all of the construction activities in British Columbia.

So we certainly expect the prefeasibility study to give us new updated numbers on construction costs, as well as operating costs naturally. But I think the construction costs are certainly where we are going to put a lot of emphasis. And not just the costs but also the timeline, that is a very important component of this study.

It seems like the stock should start reflecting the asset of Galore Creek again, and those are my questions. Sorry for stepping on you.

No worries, Mike. And we are really pleased to see the decision to complete the prefeasibility study, and of course we are very happy that Teck is funding it, and we will look forward to the results early next year.

Thank you. There are no further questions registered at this time. I would now like to turn the meeting back over to Mr. Van Nieuwenhuyse.

Rebecca, thank you. And thank you, ladies and gentlemen, for joining us on our first quarterly call. We will look forward to updating you again on our second quarterly call. And have a great day.

Thank you, the conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.