Pan American Silver Corp (PAAS) 2019 Q1 法說會逐字稿

Thank you for standing by.

This is the conference operator.

Welcome to the Pan American Silver First Quarter 2019 Results Conference Call.

(Operator Instructions) And the conference is being recorded.

(Operator Instructions)

I would now like to turn the conference over to Siren Fisekci, Vice President, Investor Relations.

Please go ahead.

Thank you, operator, and welcome, everyone, to Pan American Silver's First Quarter 2019 Conference Call.

We released our results after yesterday's market close, and a copy of the news release and presentation slides for today's call are available on our website.

In a few moments, I will turn the call over to Pan American's President and CEO, Michael Steinmann, who will provide a brief review of our results.

We will then open the call to questions and answers.

Joining us for the Q&A portion are Pan American's Chief Operating Officer, Steve Busby; Senior VP Project Development, George Greer; Senior VP, Technical Services and Process Optimization, Martin Wafforn; and VP of Business Development and Geology, Chris Emerson.

Before we get started, I'd like to remind everyone that our news release and certain statements and information in this call constitute forward-looking statements and information.

Please review the cautionary statements included in our news release and presentation as well as the risk factors described in our most recent form 40-F and Annual Information Form.

I will now turn the call over to Michael.

Thank you, Siren.

Welcome everyone joining us today to discuss our results for the first quarter 2019.

We closed the acquisition of Tahoe Resources on February 22, and our results for the first quarter reflects the contribution from the mines we acquired starting on the closing date to March 31, 2019, a period of 38 days.

Revenues in Q1 2019 were $232.6 million, up 12% from Q1 2018, mainly from higher metal sales except copper, including higher gold sales from the newly-acquired mines.

The higher metal sales were partially offset by lower metal prices.

We also had an $8 million settlement adjustment from the inventory build in Q4 2018.

Net earnings for the quarter were $33.8 million or $0.19 per share.

Adjusted earnings came in at $8.7 million or $0.05 per share.

Strong operating cash flow of $65 million in Q1 2019 before changes in working capital and interest and taxes paid funded our sustaining capital, tax payments and dividends.

Taxes in the quarter were about $34 million.

As usual, tax payments are heavily weighted to the first quarter of the year and carry partially into the second quarter.

The first quarter's cash flow was obviously impacted by cost associated with the completion of the Tahoe acquisition.

We drew $335 million on our credit facility in the quarter to fund the $275 million cash payment for the Tahoe acquisition and to settle the $125 million previously drawn on Tahoe's credit facility.

These uses of cash, including $38 million in working capital changes, mostly related to transaction closing costs resulting in net cash used in the quarter of $12.9 million.

At the end of March, we had a cash and short-term investment balance of $121.6 million and $165 million available under our credit facility.

Working capital of $771.7 million included $376.4 million of net assets relating to the Bell Creek and Timmins mines, which are being classified as discontinued operations held for sale and thus included in working capital as at of March 31, 2019.

Total debt was about $363 million, which includes $28.1 million in lease liabilities, the majority of which followed from the application of the new IFRS 16 rules.

Operations in the quarter were strong, stable and on track to meet our updated guidance for the year.

Consolidated silver production of 6.13 million ounces was in line with our expectations.

The increase in gold production to 80,500 ounces reflects the contribution from the acquired mines over the 38-day period starting February 22.

Meanwhile, we continue advancing on the COSE and Joaquin development near Manantial Espejo mine towards initiating production later this year.

To better account for the impact of the gold assets we acquired, we have adjusted how we report cash costs and all-in sustaining costs.

We are now reporting unit costs on a segmented and ounces-sold basis.

The silver segment reflects our operations other than the gold mines we acquired through Tahoe with revenues from all metal sold except silver being treated as a by-product credit to cost.

The gold segment relates to the acquired gold mines, Shahuindo, La Arena and Timmins that all produce nominal amounts of silver.

For the gold segment, the revenues from silver sales are accredited to costs.

The consolidated cost metric includes all of our current operations and is calculated on a silver-sold basis with all by-product metal sales, including the gold revenue from the acquired mines, as credit to costs.

Consolidated all-in sustaining cost also include all G&A and exploration expenses.

These cost metrics are detailed in our MD&A, which I encourage you to review to help better understand these changes.

We have also updated our 2019 annual guidance to incorporate the production addition from the acquired mines.

Again, we have provided segmented guidance for our silver mines, gold mines and consolidated operations.

On a consolidated basis, total silver production is expected to be 26.6 million to 27.6 million ounces, and total gold production is expected to be 570,000 to 620,000 ounces during 2019.

Cash cost on a consolidated silver basis, with all gold revenues credited to cost, are expected to range between negative $2.25 to about $0.50 per ounce sold.

Consolidated all-in sustaining cost are expected to range from $7.75 to $10.75 per ounce sold, again including all G&A-related expenses and exploration costs.

An operational highlight in the quarter was the completion of the shaft upgrade to 1,080 meters at the Bell Creek mine in Canada in February.

The shaft is already performing at full capacity with very limited ore or waste being trucked up the ramp.

This remarkably rapid commissioning time was made possible because of our highly experienced and talented mining team at Bell Creek who essentially completed the design and installation of this shaft in-house with limited contractor support.

Capital expenditures in 2019 are estimated at $243 million to $253 million, of which $40 million is allocated to projects pending with the balance allocated to sustaining capital.

We expect the second quarter to be the heavy capital spending quarter as we take advantage of the dry season in South America to advance leach pad construction and enhance water management infrastructure.

We expect cash flows to improve in the second half of the year.

Drilling at the newly discovered skarn deposit at La Colorada continues to return exceptional results with wide intersects of polymetallic mineralization.

Hole U-26-19 returned over 276 meters at 34 grams per tonne silver, 3.76% zinc, 1.69% lead and 0.18% copper.

Hole U-22-19 accounted 84.5 meters with 63 grams of silver, 5.18% zinc, 1.27% lead and 0.13% copper.

That's just 2 of the drill highlights.

And the full table of results is provided in our news release and conference call slides for the first quarter.

Building off this exciting target will continue throughout the year with 6 to 8 drill rigs from underground and surface.

Drilling of a total program is about 50,000 meters.

Due to its potential size, location and metal composition, we are treating this current discovery as a special project independent from the current La Colorada sale reproduction.

And we plan to release the first resource estimate at the end of the year.

In 2019, our priorities are to integrate and optimize the tower operations and capture available synergies.

We are very pleased with how the integration is progressing.

While we continue to hold the sector-leading strong balance sheet, we would prefer to reduce the level of debt we absorbed to complete the acquisition and are looking at opportunities to divest some of our noncore assets for a fair price and use those proceeds to reduce debt.

As such, I note that our Q1 financial classify our Timmins mine assets held for sale.

I would also like to highlight that we also have some noncore properties from the original Pan American portfolio that we could divest in the future as well.

In Guatemala, our goal is to establish a reputation as an honest and credible partner with our communities and other stakeholders.

At this stage, we are focused on gaining a deeper understanding of expectations and concerns about the Escobal mine.

Meanwhile, the Guatemalan government is implementing the 4-stage ILO 169 indigenous consultation process that was ordered by the Constitutional Court and is being administered by the Ministry of Energy and Mines.

We are participants in the process and diligent to respond to questions and requests being asked by the minister as the process takes shape.

We understand that the first stage of the consultation by the Minister of Environment reviewed, defined and recommended the mines are of influence boundary, has been completed.

And the second stage preconsultation process to define and agree the terms, time lines and mechanism for the consultation process is under way.

At this time, there has not been any time line provided for this consultation process.

We take consultation with communities of interest and indigenous people very seriously and are committed to support the process.

The past quarter was a very busy period with large cash outflows associated with the acquisition transaction.

Operations are performing well, and we are looking forward to the contribution of new gold ounces from the acquired mines to ramp up of the underground mine at Dolores, the new shaft at Timmins, the mining rates at Shahuindo and the start of production from our new Joaquin and COSE satellite mine developments in Argentina.

In addition to the strong diversified base of operations, we have exceptionally strong catalysts for growth with our La Colorada exploration discovery, potential development at Navidad and the potential restart of operations at Escobal.

These are long-term prospects that could become significant value generators for us.

That wraps up my formal comments, and I'd like now to open the call for questions.

(Operator Instructions) Our first question comes from Chris Thompson with PI Financial.

Just one quick question to start off.

Just looking at La Arena, I mean you're guiding for between $54 million and $56 million in CapEx guidance for this year.

Obviously, it seems like it's a high-cost mine with a limited mine life.

Can you just break that down for us?

Where is that CapEx going?

Yes.

Steve here.

The vast majority of that is prestripping.

There's about -- almost half of that goes into the open pit prestripping.

We're in a waste phase on what we call Phase 7 of the pit layback.

So we're moving quite a bit of waste that'll open up the ore towards the latter part of the year.

And then there's also a major significant leach pad expansion going on.

So combined, they probably represent 3/4 of that capital.

Got it.

Have you got any -- have you got a sense of the plans for the asset here?

I mean specifically, La Arena 2, the porphyry opportunity?

Sorry, I didn't get that, Chris.

Could you repeat?

Sorry, Mike.

I'm just questioning the plans for the mine, understanding that there is a porphyry development opportunity there.

Yes.

Sorry, La Arena 2 that you're talking about?

Correct.

I think it's very clear when you look at the reserves of La Arena oxide, so La Arena 1 if you want to call it like that, at the current mine, it's probably somewhere in the 3 to 4 year of reserve depending a little bit on the exploration success that could maybe drag out a bit longer.

But Tahoe identified that very large porphyry, which is called La Arena 2, which is a copper/gold porphyry, probably about 70%.

If I recall right, about 70%, 75% of the revenue will be from copper, very large project, which is an interesting project for sure but not a project that really fits in our portfolio.

I think I was very clear from the beginning on that La Arena 2 as referred to, which is the sulfide part of La Arena, would better fit into a very large space metal company than into Pan American Silver.

Great.

And then just finally, just moving on to Shahuindo.

Maybe a little bit of an update there as far as operations are concerned.

I understand that not all the ore is being put through the agglomeration plant at the moment, so just describe the sort of mix that's going through that.

And maybe just walk us through what the expectation is there in the near-term.

Yes.

Chris, we'd be happy to.

We're very pleased with what we're seeing at Shahuindo ramping up production there.

We did during Q1, we were able to mobilize enough of the mining fleet now that we're now running at full capacity, 35,000 tonnes a day of ore being released and very attractive less than 1:1 strip ratio coming out of the mine.

So at this current time, we're currently run-of-mine leaching that ore.

That ore that we're finding in this phase of the pit development is really suitable for run-of-mine ore.

We're not seeing these siltstones, these low permeability ores to any large degree.

And we don't -- based on our current geologic understanding, we don't think we'll run into a lot of that type of ore during 2019.

We'll see a little bit of it but probably in quantities that we could sufficiently blend with our run-of-mine.

So right now, we are commissioning kind of dry commissioning and getting the -- crushing the agglomeration plant ready to run.

But as I mentioned, we don't anticipate actually operating that because we would have to mobilize a fair amount of operators and mechanics and the cost for cement and such.

It's just isn't justified for the type of ore we're seeing.

And it's really interesting because the geologic realities of what we opened up in this first phase of the pit, both in terms of gold grade and reconciliation, we're seeing a little bit different geology than what was interpreted from the wide-space exploration drilling.

And so far in the pit, we've seen some pretty attractive positive gold reconciliations with grades between 20 -- 15% to 20% higher than projected.

And that's coming from some cross-cutting structures that were paralleled to the drilling.

And we think that feeds this whole geologic modeling that there might have been a bit of overinterpretation of the siltstone methodology that requires the crushing and conglomeration for permeability control.

So it's a real good news story for us in 2019.

And as I say, we just now got up to full capacity kind of towards the end of Q1.

So we're really excited about the opportunity there this year.

Congrats, guys, for the 25 years.

Thank you.

Our next question comes is from Sherry Deng with Scotiabank.

Just a quick question.

Could you please give us some color on the sustaining CapEx going forward beyond 2019 for the new gold assets?

Yes.

This is Steve.

We don't really have that put together yet.

We're looking at another laid-back phase opportunity in La Arena that may change that quite a bit.

Shahuindo, as I've mentioned, we're kind of reevaluating the whole geologic model there as to what may be required in that aspect.

So we're really not prepared to provide any more sustaining capital beyond 2019 at this time.

Yes.

Just to wane here again.

We gave only the guidance for this year 2019.

Obviously, before, Pan American showed longer guidance.

And I'm still a strong believer that that's the right thing to do over the longer term.

But right now, until we have the integration finalized, this is just what we do.

I think it's better to give the 2019 guidance here in detail, finalize the integration and then look at the longer guidance outlook again.

Our next question is from Lawson Winder with Bank of America Merrill Lynch.

Congratulations on the 25 years.

I hope the celebration is fun.

Several questions from me.

Maybe -- I'm not sure if you're comfortable answering some questions on Timmins.

But basically, one key question that I'd love to get an answer to is what the sort of mining dilution was at -- between those 2 underground mines in the quarter.

Yes.

Lawson, relative to Bell Creek, we've got really good control on the mining dilution there.

Don't quote me on the numbers, but I've heard numbers like 10% to 15% of what I'll call external dilution, which is well within what they kind of planned.

With the new shaft, Bell Creek is really looking positive.

We're starting to see the efficiencies of the shaft, reduction of the trucking required -- I mean elimination, essentially, of the trucking required at the ramp.

I think -- I view it kind of like we viewed La Colorada a year -- almost 2 years ago now when we started that shaft, and it just -- there's lots of upsides to capture there and it's really brought dose of efficiency to that site that's generated a lot of enthusiasm.

It's very exciting, and they do mine very, very controlled there.

We have had some issues over Timmins west in the Gap 144 deposit.

There was a couple of stopes where we were -- we did incur a little bit more dilution than we had anticipated during Q1.

And they were in some lower-grade parts of the initial developments of some of those stopes.

The team has now gotten control of that, and we do see that turnaround to meet kind of guidance grades and throughput from that point on.

So we're not real concerned about any excess dilution at either of those mines going forward.

Got you.

Okay.

And then just maybe what were the average underground mining cost per tonne if you have that?

For the quarter?

I would say, at Timmins, they were roughly, call it, $90 a tonne overall.

That includes the G&A and the processing and the haulage from Timmins West.

Okay.

Okay.

And that's U.S. dollars, right?

Yes.

Correct.

Okay.

Great.

And then just looking at Peru, it seemed like Huaron saw cost per tonne fall quite dramatically in Q1 versus 2018, whereas Morococha seemed to have gone the other way.

Is there any color you could provide on what might be driving that?

Yes.

That's a good catch.

At Huaron, we are seeing some efficiencies on this deeper level development.

So when we developed into that deeper level, we kind of incurred some operating cost as we kind of developed into that area.

And now that we're fully developing down on the 100, it's kind of -- we're seeing a bit of a reduction to that development charge to operating cost.

That's what you're seeing there.

At Morococha, it's a matter of sequencing.

We were -- there were a couple key underground equipment deliveries we needed at the Manuelita area of the mine that hadn't come in as we had planned early in the quarter.

And that equipment, we have to tear down and drop down a shaft to get into to operation, so we didn't get those into operation as planned, and it forced us to do a resequencing a little bit of the mine away from some of the silver-rich ores into the more zinc-rich ores.

And unfortunately, given the width of the veins that we mine, that's really what drives the unit cost per tonne.

It depends on the type of mining we're doing.

And it moved into that type that carried a little bit higher cost.

Okay.

So with Huaron, it sounds like those are fairly sustainable efficiencies.

And then on the other side, it sounds like Morococha, those higher cost could continue for a couple of quarters.

Would that be a fair characterization?

I think that's a fair characterization, Lawson.

I will say that typical in Peru, we typically do our collective bargaining with the unions towards the midyear.

And sometimes, we have to claw back or capture back some pro rata cost.

So we do anticipate higher cost in the second half of the year as these inflationary cost and escalation cost hit us, which is what we planned for when we provided our guidance.

So we do think we'll come in towards guidance on both mines at this time.

Yes.

That's great.

That's very helpful.

And then I might just ask a couple of questions on the financials.

So as a result to the acquisition, there's a fairly substantial working capital build.

Just curious if that's something that you guys can start to work back down over the next couple of quarters?

Or is that something that might just kind of stay there?

Yes.

I'll pass it on to Cam Paterson, our VP of Financial Reporting.

Yes.

Thanks, Lawson.

In terms of working capital on the balance sheet, I think important to note that the -- essentially doubling of working capital that you're seeing is the direct result of the classification of the Timmins assets as held for sale.

So the assets and liabilities are now in current assets.

So that's really what you're seeing that's increasing that amount.

Okay.

It looked to me like though there was just an increase in accounts payable, excluding the -- excluding those assets.

Or am I incorrect?

There's directions both sides.

Those -- the net impact of the not discontinued operations are related to the acquisition.

We've seen increases in inventory, obviously.

We've seen an increase in accounts receivable related to the timing of some of our concentrate sales.

And of course, accounts payables have increased with the scale of the company.

Okay.

So those are just likely to maintain going forward?

A lot of it has to do with timing.

But of course, with the increased size of the company, then we're going to see working capital balances that are higher than they were prior to the acquisition.

Yes.

Okay.

Now that's great.

That's basically -- that's exactly what I was getting at.

And then also, just on the care maintenance guidance for Escobal of $22 million to $24 million, is that a full cash number?

Or is there some sort of noncash inventory component in there?

No.

That's a full cash number, Lawson.

However, we do still have -- we're anticipating a significant amount of that recovery during the year.

That could be as much as half of that coming back at us.

And I want to keep in mind that was from February 22.

It's not a full year run.

Okay.

Great.

And then probably a question for Michael just, are you able to talk at all to what assets in the legacy Pan American portfolio might be considered noncore at this point?

Well, I think I gave some hints on that if you look in some of our presentations further back, for example, we own 25% free carried into production in a large, very large zinc project in Peru called Shalipayco that is run by Nexa resources right now.

They earned in into that project that belonged to Pan American way back.

And as I said, 25% free carried to production, so that's, for sure, a noncore asset for us we don't need, not looking for minority interest in a large base metal mine.

We're having still a few properties around there like La Bolsa and Pico Machay, for example, one in Mexico, the other one in Peru.

Two gold assets that are, for sure, with the new sites of the company now, too small for us that we would look to divest.

So there's a group that we're going through it.

And while I'm at it, just a general -- few general comments here.

Obviously, very early days of the transaction.

I'm incredibly happy and really impressed how the team handles -- the integration is going really well.

But it is early days, especially when I look at the quarter, it's only 1 month and 8 days that we included the Tahoe assets in our production numbers and financials.

And I would also like to caution everybody that when you look at the guidance, obviously for the same reason, the gold guidance production and cost, et cetera, for the Tahoe assets only -- is only given from February 22 on, so you can't really very easily compare it to some former numbers that Tahoe would have put out last year or before for a full year production guidance.

Okay.

Thanks for that.

And then just maybe one more on the exploration at the La Colorada skarn.

I noticed in 1 drill hole, there is this like -- there's really high intercept with it, which is the massive silver intersection.

I mean was that Skarn mineralization that intercepted that?

Or are you seeing a different type of mineralization at that sort of -- those sort of heights and those lower depth?

Sure.

Lawson, it's Chris here.

Yes, obviously, we're drilling up from the upper part of the -- the lowest part of the mine, but within the system, relatively high.

So as we drill through, we're going through -- enter some veins, and then we're going into mantos and then into the skarn.

So yes, we are hitting vein -- high-grade veins.

And obviously, that is what you're seeing in that 86, what you're referring to as the 46 kilos of silver.

And that's just one of the highlights in a [swath of grade] drill holes, which obviously, we're very encouraged with.

Our next question is from John Tumazos with John Tumazos Very Independent Research.

Congratulations on all the recent and longer-term successes.

Concerning the Ontario gold assets, might you consider keeping the non-Timmins prospects or projects?

Fenn-Gib is about 2 hours East, Juby is at least an hour South, it wouldn't use the Bell Creek mill.

I think they each 4 million, 5 million ounce resources with a lot of optionality.

First question.

Yes.

Thank you, John.

Look, as we stated, these assets are in our financials stated as assets out for sale.

A process is obviously going on.

So we're looking at many different possibilities and opportunities to generate value for our shareholders off these assets.

I always made the statement before that there's no urgent need for us neither to do anything neither on the Tahoe side nor on the Pan American side.

We can be very patient.

We're in an incredible strong financial position here still after the transaction.

But we're looking at many different opportunities here for the Canadian assets as well, John.

And it's probably not the right time as we are in the process to go in these kind of details.

But yes, I want to assure you that we look in any possible way to dice and slice it.

Concerning the La Arena sulfides, Tahoe's technical study, February last year, was very impressive.

They drilled the La Arena sulfites by comparison, 30x -- 35x more densely than Northern Dynasty and 3x more densely than Rosemont and QB sulfides that Hudbay and Teck are putting into production.

They also have a very good mining cost per tonne, and the sulfides are unknown quantity underneath an oxide where you already have a truck shop workforce, et cetera.

Why not put that up for sale?

The copper companies are rosy-eyed, full of themselves, electric cars tomorrow, all that kind of thing, where there's 20 or 30 gold assets for sale or about to be for sale.

Yes.

I think I have been pretty open and straightforward with that La Arena 2 copper deposit or copper gold deposit that you're referring to, it's a noncore asset for us.

I think I was clear that from the beginning on, that -- I still maintain that position.

I think this is in much better hands.

I really like the deposit, but we are a silver, a precious metal, producer, and this kind of deposit, very large, very interesting copper deposit is in much better hands with a large copper producer.

I absolutely agree with you.

I think there's a chance you get more for that than for the Timmins district gold.

Last question, forgive me, I'm just a dumb American.

My U.S. account lists 0 for the value of the contingent value right.

What has it been trading at up in Toronto?

It is not publicly trading.

So I don't have a number for it, John.

If you got it listed in Toronto or had a 5 character NASDAQ symbol for it, it would be very convenient for the loyal Pan Am shareholders that came in from Tahoe.

Thank you for your questions, John.

Our next question is from Mark Magarian with Wells Fargo.

Good job on a solid start following the acquisition.

You may have already touched on this, I'm sorry, I've just been in and out on this call.

But I -- you put down Timmins and Bell Creek as assets held for sale as far as you reported your results.

Where are you with the process of those assets being disposed?

It's a normal process like any process that you would do.

When you run something like this, there's a large amount of companies that look at it.

As you can imagine, there is a big interest in gold assets in a jurisdiction like Canada.

And it's moving along with data room and site visits.

So that's where we stand right now.

Our next question is from Josh Kenter with Summer Road LLC.

Just talking about the Escobal situation.

You mentioned that the review process was completed.

Can you kind of talk about how that went?

Did it go in your favor?

Or -- was the government useful in those negotiations?

And maybe kind of just guide us as -- going forward how often we'll get updates from you guys about the next steps.

Yes.

Thank you for the question.

Actually, in the call, yes, I mentioned that the first stage of the consultation process has been completed.

We're also aware that there have been some challenges on that, and it's important to note that the consultation process is being ratified at Guatemalan Ministry of Mines with an oversight from the Guatemalan Supreme Court.

So what we do or can do is fully support, obviously answer any question that we get.

As I always stated from the beginning on -- of the transaction, there is no time line to this.

This will take time.

We want to take the time to hear all the concerns and listen to everybody and understand what the concerns really are and how we could address them in the future.

So there's no time line to it.

Please be patient with us on that.

We can obviously give updates quarter-by-quarter.

But as I said, this is not advancing that fast right now as expected.

And -- so there won't be too much updates or big news every quarter.

As I said, this will -- think in longer term here as a project.

Got it.

I mean the previous management team kind of guided us to December '19 as kind of the end date of when this would potentially resolve.

I know you don't want to give kind of a time line, but would you say that, that should be -- we should push that back now?

Absolutely.

This is not...

Do you have any best-case scenario versus kind of worst case?

I mean would you say best case a certain time or worst case a certain time?

No.

I don't have any timing on this.

As I said it, as long as it's going to take to get this done right.

This is very important to us, and it will take time.

We are working on it.

As I said, we had -- we owned the assets only for 1 month and 8 days.

So obviously, we need more time to work on this.

But no, I'm not able to give you any time line on it.

Thank you.

Our next question is from George Brickfield with BTIG.

Just one follow-up on the Escobal mine.

The preconsultation stage that you're in right now, do you have any kind of estimate time line on that stage's completion?

No.

The government doesn't give us any time line on this.

As I said, this process is run by the Ministry of Mines together with the help of many of the ministries.

And as I said, at the moment, we are obviously asking -- or answering any questions that they may have and collaborate with the ministries.

But no, there is no time line given by the ministry for that.

Okay.

And then last question.

Do you know how many stages there are in the process with the Ministry of Mines?

Yes.

There are 4 stages to the process.

This concludes the time allocated for questions on today's call.

I would like to turn the conference back over to Michael Steinmann for any closing remarks.

Thank you, everyone, for calling in today.

Looking forward to catch up again with our Q2 results, which will be in August.

So have a good start of the summer.

Thank you.

This concludes today's conference call.

You may disconnect your lines.

Thank you for participating, and have a pleasant day.