Americas Gold and Silver Corporation (USAS) 2011 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Please note that at this time all lines are in a listen only mode and they will be open for questions at the end of the call.

I would like to turn the conference over to Mrs. Victoria Vargas, Vice President Investor Relations and Corporate Communications. Please go ahead.

Thank you, Martina. Good morning, ladies and gentlemen. Welcome to Scorpio Mining year-end and fourth-quarter conference call. Joining me here today are Parviz Farsangi, President and Chief Executive Officer, and Hemdat Sawh, Chief Financial Officer. James Stonehouse, Vice President, Exploration, and John Sadek, Mexico Country Manager, are joining us from Mexico, Sinaloa.

I would like to start today's call by reminding our listeners that this call may not be reproduced or transmitted without our consent, and that some of our comments today will be forward-looking in nature. Our earnings release provides more information about the statements on our Annual Information Form's described various risk factors that may be applicable. With that I will now turn the call over to Parviz Farsangi.

Thank you, Victoria, and good morning, good afternoon, depending who is on the call, ladies and gentlemen. I would like to start by saying that 2011 was a significant year in the evolution of Scorpio Mining. In this regard I will make some brief comments about our performance and discuss the progress that we made in achieving our operational goals and implementing our business plan.

I would also address some of our recent challenges that we have experience in our current assessment regarding our mineral reserve and resource estimate at Nuestra Senora Mine, as described in our 2011 actual and -- annual and Q4 financial and operational results and other related disclosure documents.

And then we then speak of our financial results, and James will provide an update on our reserve and resource estimate and current and planned exciting exploration activities. After this I will talk to about our priorities for 2012 and then we will have a question/answer session.

Before we get into our results, I'm very pleased to say that in 2011 we were successful in executing key aspects of our business plan, and that we continued to make significant operational progress.

These accomplishments included, reducing lost time frequency and severity index 91% and 89%, respectively, compared with 2010; having no environmental noncompliance; ramping up of the mine and the plant with the goal of delivering a sustainable level of production; executing our capital development and exploration plans at Nuestra Senora Mine, including an underground exploration program; carrying out planned expiration of assets that we acquired through the Platte River acquisition, including further technical studies on the San Rafael Deposit; and achieving encouraging results from drilling at San Rafael.

Gaining debt-free status to repayment of CAD20 million to fully retire then outstanding convertible debentures, eliminating all long-term debt; significantly increasing underground ore production and plant throughput; recovered silver equivalent ounces and contained metal produced; and strengthening our management team with key appointments. Most of the management team members have been with the Company for less than a year, and bring new depth and experience to the Company.

In 2011 we substantially improved our operational and financial results in key areas, which Hemdat will describe in more detail. Significant production increases, coupled with higher metal prices, translated into revenue from metals payable in 2011 of CAD70.3 million, a 67% increase in revenue compared to 2010.

Recovered silver equivalent ounces in 2011 also increased by 41% to almost 2.85 million ounces as compared to just over 2 million in 2010. I don't want to steal too much of Hemdat's thunder, as I know he is all set to review our year-end and fourth-quarter results with you in a few minutes, however, I would like to mention a couple of key metrics.

For the fourth quarter we established a new Company record for underground production and plant throughput, which increased 32% and 17%, respectively, compared to Q4 2010. We also increased recovered silver equivalent ounces by 13% to almost 694,000 ounces in Q4 compared with 613,000 in Q4 2010.

These results were achieved in spite of our challenges related to an aging mobile mining equipment fleet, which we have been addressing through new equipment purchases.

Now I would like to comment on our review and reserve -- review of the reserve and resource estimates set out on Technical Report dated March 28, 2011, and prepared for the Company by independent consultant, Geniva Inc., which was updated using 2009 and 2010 diamond drilling results.

As we recently reported, the Company has identified an expected divergence between the mineral reserve and resource estimates set out in the report and the actual mineralization the Company has encountered in its current operation in the main production areas between level 8 and 12 at the Nuestra Senora Mine.

In our recent production we are experiencing instances of mineralization continually lower than estimated lead and copper grade in these production areas. And development and definition drilling has identified lower tonnages relative to what was expected based on that report.

In order to better understand the divergence, the Company has commissioned a comprehensive review of the available geology, exploration and production data from the Nuestra Senora Mine. In Q3 2011 the Company engaged Mine Development Associates, MDA, an independent expert to prepare a new reserve and resource estimates that take into account the latest information and data available to the Company.

Mine Development Associates, MDA, is based in Reno and provides geological and mine engineering services, including reporting as Qualified Person in accordance with NI 43-101 and other international reporting standards. MDA were the consultants engaged for geological modeling of San Rafael and El Cajon, the same district by the Platte River, and are currently preparing updated mineral resource and reserve estimates for these projects.

Management believes that it is in Company's and the shareholders' best interest for it to take a consistent and prudent approach in establishing mineral resource and reserve estimates. With this in mind, we engaged MDA for the updated resource and reserve calculation from the Nuestra Senora Mine, and expect to benefit from its extensive knowledge of the region and approach to resource and reserve calculation estimation.

This work will enable us to better plan Nuestra Senora production, more effectively quantify all reconciliation, and assist with targeting our future exploration program. The Company expects a new resource estimate to be available by end of Q2. And an updated reserve estimate is expected in late Q3 or early in Q4.

We don't yet know the extent of expected Nuestra Senora reserve and resource shortfall, but we aim to mitigate some of the reduction through several initiatives, which I will cover later on on the call.

I will now turn the call over to Hemdat, who will present the financial overview with 2011 annual and fourth-quarter results. Hemdat.

Thank you, Parviz, and good morning everyone. Looking at the slide showing our annual 2011 results compared to 2010, 2011 was a year of record performance for Scorpio Mining. Underground ore production and plant throughput in 2011 increased 45% and 34%, respectively, compared to 2010.

As a result, silver equivalent ounces increased 41% to almost 2.9 million silver equivalent ounces compared to just over 2 million silver equivalent ounces in 2010. This translated into record revenues of CAD70.3 million compared to CAD42.2 million in 2010, a 67% increase over 2010. Mine operating earnings of CAD33.2 million compared to CAD9 million in 2010, a 271% increase over 2010.

Cash flow from operations of CAD33.9 million compared to CAD11.5 million in 2010, representing a 194% increase over 2010. And adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of CAD35 million compared to CAD14.3 million in 2010, representing a 144% increase over 2010. The resulting earnings per share basic was CAD0.07 per share compared to CAD0.18 per share in 2010.

Included in the net earnings for 2010 is a CAD20.2 million non-cash gain on dilution and deconsolidation of Scorpio Gold, a now former subsidiary of Scorpio Mining, and a non-cash CAD9.9 million deferred income tax recovery adjustment. These two items in 2010 in the aggregate accounted for CAD0.18 per share.

In 2011 we we repaid the entire CAD20 million debentures which came due in May 2011. And as a result we are debt free and have a healthy balance sheet, which includes cash of CAD25.8 million as of December 31, 2011. This cash balance is after prepayment of CAD5.8 million at year-end for reagents and mining fleet, which is expected to be in place by Q3 2012.

Our cash balance as of March 26, 2012 was approximately CAD32 million. We plan to internally fund the phase one plant expansion and phase two -- when a decision is made to proceed to phase two -- for a total cost of CAD20 million. We have commenced phase one, which is budgeted at CAD5 million.

Phase one of the plant expansion includes engineering, civil works, and the purchasing of long leadtime items, such as an additional used ball mill, which we have already done, and installation of a flash flotation cell. Phase one is expected to be concluded in Q2 of 2012.

We had 15.5 million Scorpio Gold shares at year-end, and we have since sold 4.2 million of these shares for net cash proceeds of CAD3.6 million. The remaining 11.2 million shares of Scorpio Gold will be released from escrow in mid-June 2012.

We also expect to internally fund our 2012 exploration program of approximately CAD9.3 million and sustaining capital of CAD5.2 million at Nuestra Senora Mine. Accordingly, we believe that the financial condition of the Company is sound and we will be able to execute our planned activities.

Now turning now to the results of Q4 2011. In terms of revenues, in Q4 2011 we mined more ore and processed more metals than in Q3 2011; however, revenues declined by CAD2.1 million from CAD13.6 million in Q3 2011 to the CAD11.5 million in Q4 2011. The decrease in revenue is due to several factors, namely a decline in all metal prices, accounting for about CAD1.5 million in revenue reduction. We had higher than normal lead inventory of approximately 137 dry metric tonnes, which contained about 15,000 ounces of silver.

There were variations between what we reported as produced metals and amounts reported by the purchaser, accounting for an estimated CAD500,000 reduction in revenue. Penalties incurred due to a decrease in the quality of our copper concentrate. And there were also some negative adjustments that accounted for about CAD400,000 decline in revenue in Q4 2011, relating to a settlement adjustments for the previous quarter sales due to price and assay adjustments.

In terms of cost, the Q4 costs were higher than previous quarters, and we have implemented processes to monitor these costs very closely. Cash costs per silver payable ounce, net of base metal credits, was $9.65 in Q4 2011 compared to $5.86 in Q3 2011. This increase in Q4 2011 relative to Q3 mostly resulted from, one, reduced base metal prices which resulted in reduced byproduct credits; secondly, cost adjustments at year-end; and thirdly, lower than usual payable silver as mentioned earlier.

The effect of the reduced base metal prices from Q3 to Q4 accounted for an estimated [$3.29] relative increase in cash cost per silver payable ounce.

In Q4 2011 the mine operating costs increased by CAD1.1 million from CAD6 million in Q3 2011 to CAD7.1 million in Q4 2011. After adjusting for the increased production in Q4 2011 of approximately CAD200,000, the incremental site costs in Q4 was approximately CAD900,000.

This increase was due to additional spare parts used for mill repairs. We contracted a third-party to perform scope preparation. Increased insurance premiums for increased business interruption coverage, and year-end labor adjustments. This increased cost accounted for approximately [$3.67] per silver payable ounce.

The new management team has been reviewing all areas of operations and risk assessments, which resulted in additional costs incurred in Q4 2011 relative to Q3 2011. We are focusing our efforts on cost control and expect that a newly installed SAP program will assist us in monitoring our performance in a timelier manner. We don't expect to use a contract driller in the second quarter as our new drill has now arrived at site.

The total adjustment to cash cost per silver payable ounce in Q4 was [$6.96], resulting in normalized costs of [$2.69] relative to Q3 2011 of $5.86.

Commercial settlement variations are now approaching normal, resulting in metal payables as expected. This should result in improved credits from lead, copper and zinc and improved silver payables.

With that I will turn the call over to James Stonehouse.

Good morning. Slide 8 is a summary of what we plan to accomplish in the coming year. We have planned in excess of 25,000 meters of drilling. This is aimed at augmenting the Nuestra Senora resource, evaluating targets near Nuestra Senora, delivering new resource estimates for Sab Raphael and El Cajon in the second quarter, bringing two or more of our outside targets to the evaluation stage, advancing La Revancha to resource evaluation and getting the drilling started at Tepozan.

In slide 9 we see the Nuestra Senora area. We have completed substantially all the work necessary to allow MDA, our independent technical consultants, to complete a resource study by the end of the second quarter.

In 2011 we drilled over 14,000 meters, and are continuing drilling near the existing mining areas. At Nuestra Senora we are working diligently to follow-up with exploration of all areas identified in the ongoing study as having potential for adding tonnes to the resource picture, and exploring all the other areas previously identified as having potential to host mineralization in the mine and the areas surrounding the mine.

To pursue this more aggressively we have added an additional drill to the mix, which is now operating. This year we plan to drill in excess of 7,000 meters underground and begin some work on nearby surface occurrences.

Looking at slide 10, San Rafael's current resource estimate includes almost 8 million tonnes of measured and indicated resources, with an additional 209,000 tonnes of inferred resource. We plan to report an update to this resource estimate by the end of the second quarter.

In the course of our drilling activity we identified a new mineralized zone which may positively impact these results, so we changed our initial drilling schedule to evaluate this perspective area. We have turned in some good intercepts in San Rafael recently, like a true width of 5.1 meters, grading 1,562 grams per tonne silver in hole SR279, and 6.75 meters, or 209 grams per tonne silver, and a combined 25.1% lead-zinc in hole SR249.

At El Cajon, shown on the slide 11, we have completed six of the nine holes recommended by MDA to date. These holes are planned to raise the confidence level in the core of the previously announced 2.4 million tonnes of resource at 129 grams per tonne silver, and hopefully move the additional 1 million tonnes of inferred resources to a higher category.

A few holes are planned on the margins of the mineralization to investigate potential extensions of the resource. We also expect MDA to update our resource estimate here by the end of the second quarter.

Slide 12 shows our outside properties and exploration targets. We are set to begin drilling several outside properties in an effort to bring new resources onto the books. Drill access is being constructed of several properties, and drilling should commence in the next week or so. These are not small targets. Several are 1 or more kilometers long strike and have great potential.

Two targets are well located near Nuestra Senora or near logistic routes to the mine, and appear to be perspective. Our goal is to progress at least two of our outside properties to the resource evaluation stage this year.

We are also excited that our exploration crew has identified several new perspective exploration targets during roadbuilding and mapping programs.

Our Parral area projects are shown in the 13th slide. In the Parral area we have two advanced projects which are progressing nicely. These are in elephant country, as the nearby Santa Barbara and San Francisco mines produce in the neighborhood of a tonne of silver every day.

Revancha is a complex vein system over a kilometer in length with at least three principal mineralized trends. Intercepts of up to 28 meters true width with grades of 146 grams per tonne silver and higher grade areas with true width of 10 meters with values of 255 grams per tonne have been intercepted. We now have investigated a strike length of about 350 meters, and a dip extension of about 150 meters.

We have finished phase one here and look forward to releasing the rest of those results in about two weeks. Our second phase is planned later in the year. This may lead to a preliminary resource calculation.

Tepozan is a 1 kilometer long structure, with width up to 10 meters. This structure has been mined along its entire length, but has not been previously drilled. Numerous chip and channel samples have returned values over 150 grams per tonne. About 2,500 meters are planned here and the first result should be back in about two to three weeks.

Turning to slide 14. It summarizes our planned exploration program for 2012. It includes an aggressive drilling program in excess of 25,000 meters. Beginning work on early stage exploration properties in the Cosala district, with the goal of bringing some to the evaluation stage. And continuing the exciting work we have begun in Corel at La Revancha and Tepozan. With that I would like to hand the floor back to Parviz.

Thanks, James. Again, you have now heard wherever you have been, the obvious question is what lies ahead for Scorpio Mining, what is our strategy going forward.

Some of the key objective for the remainder of 2012 are as follows. To deal with the reserve shortfall we will accelerate development on production areas that we are not as prominent in 2012 production plan. Areas like Candelabras mine out is not part of our reserve. And we all have started, when I was there last week, [air light] mining in areas too narrow for long-haul stoping.

We have started accelerating development and exploration of remnants of historical production. These are areas above eighth level in Nuestra Senora, and that is not part of our reserve right now.

To accelerate -- we also started accelerated development of La Verde Mine. That, again, is the (inaudible) of our plans. Production at La Verde Mine during 2010 by contractors and non-mechanized methods totaled 129,000 tonnes grading 114 grams per tonne silver and 0.44% copper. And pretty good recoveries of 78% and 82%, respectively, for silver and copper.

As indicated before, we continue to drill and to potentially increase the resource base and support an upgrade to reserve category for San Rafael/El Cajon deposits. We expect to complete this study of this drilling by end of Q1.

We expect to complete phase one of this data of the Nuestra Senora plant expansion in Q2 2012. Again, this includes engineering, silver works, and purchasing long leadtime items such as additional used ball mills, and installation of a flotation -- flash flotation cell.

As stated before, commencement and completion of phase two of the plant, which includes construction and commissioning, will depend on the results of the resource and reserve update at the Nuestra Senora, El Cajon and San Rafael completion, drilling result at La Verde, and permitting.

As James mentioned, we plan to continue our development campaign at San Rafael/El Cajon deposits with updated resource estimate expected by end of Q2, and reserve estimates expected for these deposits by end of Q3 or early Q4. It is key to mention this work is being done by MD&A and has been done by MDA.

We also plan to carry out new exploration drilling in certain areas surrounding our current mine that have been identified, while we continue our capital projects, development initiatives and exploration activities for 2012. All with a better understanding of the the deposit at Nuestra Senora. We also have a very aggressive exploration plan at the Parral District.

In summary, Scorpio Mining is significantly better off financially than a year ago. And despite the challenges, and major, we are currently facing near term, we are excited about the Company's future and confident on our ability to deliver success.

We carry no debt and have almost CAD50 million of working capital at December 2011, our assets located in a prospective region with promising exploration potential, and we have assembled a strong team which is fully focused on delivering sustainable shareholder value.

Thank you for attending this call and for your past and future support. I now ask our operator to please open the lines for any questions.

(Operator Instructions). [Lewis Samuel].

It appears that there are some very positive fundamentals, and puzzling to me and probably to many others, why there has been such a significant drop in the stock price recently.

Again, thanks for the answer. You are absolutely right. We do have a lot of positive fundamentals, but at the same time we do have a major issue that we have to deal with that impacts our short-term operation, midterm, long-term. I personally believe we are stronger than we were six months ago. But short-term we have an issue that we don't know the extent of, and we believe that we put the word significant for a reason. And when that information comes out we can react as accordingly, but that is one area I think maybe people are concerned, and rightfully so.

Thank you.

(Operator Instructions). [Bob McClary].

I didn't catch it if you said it. What was the cost per production of ounces of silver with credits?

Was $9.65 in the quarter, and I believe was about $1.80 for the entire year.

Okay, that was my only question. Thank you.

Just to add to that, Q4 there is a lot of one-time costs came in. Some of them would have been again (inaudible). So that is really not representing what the cost of Q4, so I think looking at year-to-date is probably a better estimation what we could do.

Great, thank you.

[Rick Troutman], MLV.

I have got a couple of questions about the resource estimates. Do you know what the drilling spacing was on the prior estimate and what it will be on the new estimate?

I think -- correct me, John, but -- John is online -- but if you look at our report for Genivar I assume would have been 25 meters. And probably the difference now would be with all the new information and all the data putting together, we're going to have sections much, much closer measuring the continuity of the ore that was there before. John (multiple speakers).

That is great, Parviz. We aim for about a 25 meter spacing on the drilling. And, obviously, there is a section of the orebody that needs to be increased -- that drill density needs to be increased as we go forward.

And this is very standard, except this type of orebody needs more information than 25 meter spacing. What are we finding out (inaudible) floor, the continuity is not there. And some assumptions that maybe you could make the 25 meter spacing might not be as accurate and it should be.

I see. In the new resource estimate it is going to continue having the same spacing or you're going to tighten up to 10 or 15 meters?

Actually, if you look at MDA and silver -- sorry, MDA's work on Platte River -- sorry, are you talking about Nuestra Senora or are you talking about Platte River areas too?

At the Nuestra Senora.

Nuestra Senora, again, one of the things we would do is we have to put sections much closer than what we had before. To do that you might need further information. That is exactly what MDA is starting and ultimately will tell us what we need and we don't need to be able to have accurate picture of this, I guess, orebody.

And once they have changed that depth it is not as continuous as we thought, or as planned, or the previous model assumed to be, and that is probably the biggest indicator. If you guys look at last year, our grade just finished the year was very close or better than the grade the year before. The grade is not necessarily a major issue, just the continuity of the ore and the extent of ore and [weight] that we assume what actually is there is really the biggest concern.

I see. Is this a problem with [salt] assets or is it more of a (inaudible) of the actual mineralization?

I think it is probably a problem of not having enough information for this type of orebody that nobody assumed that it would behave like that at depth, to be honest.

I see. And the new resource estimate, are all the assays that are used in that are they going to be certified from an external laboratory?

They were always certified before; nothing has changed. Really, we don't have issues there. But actually one thing with MDA is these guys have done the work on San Rafael. They have done the work on El Cajon. And we have drilled at least 10,000, 12,000 meters in San Rafael to verify. There is no surprises.

So there are things a third-party has to ask you to have before they put their name on it. I can guarantee you MDA is very, very clearly the things they want before they put their name on any kind of resource that -- or reserve they put out later on.

I see. And will long-haul stoping continue to be the mining method at Nuestra Senora, or are you going to start adding some more long narrow mining techniques.

To be honest, one of the things that we are finding out right now, since the orebody is not as continuous some areas that we thought we have long-haul mining, we won't be able to do long-haul mining.

And some areas that we had even before, you've got to give, I think, the team credit. Unfortunately this problem is a problem, but we recognized it when we start every hole that we drill underground for long-haul. Very few places do that. We ask at every hole. We take samples from every hole.

And then we do, we look at MSR for a given hole. And if it is below a certain point, we don't blast it. It doesn't matter what the model says, because it doesn't make ore and we don't make money. From that we start recognizing some areas that were supposed to be bulk mining is significantly less tonnes that we will be applying.

So now that we have the information, much better information, in some areas, yes, might not be part of our reserve -- might not even make part of our reserve going forward, but it is narrow enough to have a different type of mining method at the actual mine.

I was in myself last week, I saw the first shrinkage stope that we had in Nuestra Senora, and some areas the guys are going with narrow vein mining, that we always planned to do that anyway, but we have to do a little bit sooner than what we expected.

I see. And with these new narrower techniques, do you think you're going to be able to ramp up production from the underground to feed the mill -- the expanded mill rather?

To be honest, we've got to find the extent. That is why we are waiting for a report to come in. But we are not waiting for a report. Areas that we can do narrow vein mining we are going. Areas that we can do shrinkage, we are going. And areas that we will do bulk mining, I think we are going to be lots more reliable when we go mine them because we have much better information now about the orebody than we had before.

I see. And the cost per tonne for this year, what are you expecting?

Really, we haven't changed, but to be honest in our business cost per tonne for sure is a metric we have to keep an eye on, but at the end really want cost per silver -- current for silver. If we can produce more metal, a little bit higher cost, I will take it. And that is one thing could be possibly -- possibly with narrow vein mining -- if the grade is a little bit higher, you have less dilution, but you get less tonnes. But at the end you want the metal go through, and that is what pays the bill that really tonnes don't.

And this time we are not going to predict what our costs would be. But if you do less bulk mining and more narrow vein your costs per tonne might go up, but doesn't necessarily mean your cost per metal produced will go up.

Do you think that the increased grades potentially will help your concentrate quality?

Really, we had a pretty good -- if you look at our quality all last year was significantly better than the year before, and the optimizing a plan that is just two, three years in operation. And I can tell you our plan ran like a clock last year and very good in recoveries.

But last quarter we had issues, mostly because some areas, again, we expect a different rate, we didn't get it. Sometimes it didn't come. Some areas we had a little bit of challenge. But we got the team to deal with and this quarter it looks like at least we are close to our budgeted recovery.

And can you talk a little bit about the discrepancy in your lead comp and the payability factors there?

I think that is one thing we are still dealing with. To be short and sweet, if you look at our metal contained in our operation was much better than Q3, was much better than Q4 last year. When we look at our financial we just don't look that well, mostly because of one of them on recovery was a little bit lower, because of our issues with, I guess, at [copper con].

And, secondly, our payable was quite a bit less, and that we have to be -- again, we have to take the final -- at this time we are taking the final numbers that we receive from our third-party.

We always had a good system. We double checked, triple checked and three independent labs tell us what we produce, so we're very confident. It worked for us all year. But for whatever reason fourth quarter there is a discrepancy what we think it produced and what they received. And we're working on that and we are hoping to get that resolved as soon as possible.

So what do you expect for your payability factors in 2012 for your silver, lead, zinc and copper?

Again, at this time we expect to be close to what we put out the budget, because as we did three out of four quarters last year, and we are hoping fourth quarter is just an exception that won't come back.

I see. Okay. That is all I had.

Christopher Barker, The Motley Fool.

My question on the concentrate settlement issues were just answered by the previous caller. So that was one of my questions. The other, I guess, would deal with the decision for a phase one of the plant expansion. Are you as comfortable today with that phase one decision, given what seems to be a growing sense of concern over the resource downgrade issue?

That is a very good question. To be honest, I don't think we would have started phase one. Maybe that decision we feel comfortable. And as we reported, we saw some reduction. And unfortunately from what we saw underground we upgraded a significant reduction lately.

But at the same time look at the big picture, we have enough midterm/long-term resources. That plant as far as I'm concerned will be built. It is the timing on when we will have the (inaudible) going. It is CAD20 million. Not too many places they can expand the plant by 80% with CAD20 million.

So, anyway you look at it, it is always good to be prepared. James went through exploration upside. We still don't know the extent of what we have in the Nuestra Señora. We talked a little bit about La Verde. Again, there is some tonnes. There are things that we are working on that might fast-track phase two, but I think phase one is a wise move, and I don't think I would have changed it personally myself as CEO, even now. I would have got that going. But phase two might be delayed until we get some more information.

Great, okay, thank you very much.

There are no further questions in the queue. I turn the call back to the presenters.

Again, thank you very much. Thank you for your support. We don't like to be in this situation, and unfortunately we are. But as a team our job is to deal with it, and make sure whatever we do we do in a sustainable way and keep the growth going.

So thank you for your support. I would like to thank my team for a fantastic year last year, and we expect another good year this year. Thank you.

This concludes today's conference call. You may now disconnect.