Ero Copper Corp
TSX:ERO
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Ero Copper Corp
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Thank you for standing by. This is the conference operator. Welcome to the Ero Copper Corp. First Quarter 2020 Financial and Operating Results Conference Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Noel Dunn, Executive Chairman of Ero Copper. Please go ahead.
Thank you, and good morning, everyone, to our virtual results call. The news release announcing Ero's first quarter results is available on our website and on SEDAR, as are our financial statements and MD&A for the 3 months ended March 31, 2020. Comments made on this call contain forward-looking statements and involve risks and uncertainties concerning the businesses, operations and financial performance of the company. For a discussion of the risks and factors which may lead to the actual performance being different, please refer to our most recent AIF, also available on SEDAR. Unless otherwise noted, all amounts are in U.S. dollars. Joining me on the call today are David Strang, Ero's Co-Founder, Chief Executive and President; Wayne Drier, Ero's Chief Financial Officer; and Makko DeFilippo, Vice President, Corporate Development. As we all continue to work remotely, I'd like to take a moment to recognize the extraordinary efforts taking place throughout our organization to keep our employees, contractors, their families and our local communities safe, and at the same time, ensure that our operations continue to perform during this period. Our company has been integral to the local fight against COVID-19 through the donation of COVID-19 testing kits and critical medical equipment, including ventilators, across our operating footprint. To date, we continue to have no disruption to our operations, supply chains or sales channels as a result of COVID-19.During the first 3 months of this year, our core assets from the Curaçá Valley continue to perform as well, as David will elaborate further on in this call. From a financial and liquidity perspective, we remain in excellent shape as a company. We ended the quarter with approximately $45 million in cash, and with the amendment of our credit facilities during the period, no material principal payments due until March 2022. In common with many developing countries, the COVID-19 pandemic has triggered an unprecedented currency volatility, resulting in a significant weakening of the Brazilian real against the U.S. dollar. This has had an interesting impact on the company as we earn U.S. dollar revenues. We hedge our dollar revenues for up to 18 months in advance by using foreign exchange collars, buying floors to ensure a base revenue stream and selling out of the money calls to minimize the cost of our insurance. In the short term, the current volatility adversely impacted our GAAP earnings due to required accounting treatment of recognizing the noncash fair value of these FX contracts, whilst, of course, we do not recognize the actual U.S. dollar revenues until they occur. Moreover, the benefits to our operating business vastly outweigh the applied fair market value of these booked expenses, as evidenced by our record quarterly C1 cash costs, cash flow from operations and our revised U.S. dollar guidance ranges for the balance of 2020. Our hedging strategy has always been to protect against one of the biggest risks to our underlying business, a rapid strengthening of the Brazilian currency. We continue to prudently manage our exposure to this strategy. With all of that said, I'd like to reiterate that our operations are off to a strong start in 2020, and our business continues to be very well positioned in the current environment. With that, I will now pass the call over to David to provide a brief review and update of our operations, and then Wayne will provide a review of the company's financial performance. All of us will be available for questions immediately following the call.
Thank you, Noel. Just to briefly touch on what Noel mentioned, I'm incredibly proud of the ongoing effort to help protect our on-site personnel and local communities from COVID-19. Beginning in late February, we restricted all travel to and from our operations, encouraged work from home for all nonessential staff and requested that all high-risk employees stay home with full pay and benefits. Throughout our sites, we have implemented social distancing practices, enhanced sanitation procedures, temperature and wellness screening at our main gates, and more recently, started random COVID-19 testing at our operations. In addition, our teams have been integral to organizing community response efforts against COVID-19 to ensure that our communities are equally well prepared. Our colleagues in Brazil have risen above and beyond what is expected under normal circumstances, and this effort and commitment deserves to be recognized. Our production results for the first quarter reflect continued solid underlying operating performance. During the period, we produced 10,657 tonnes of copper in concentrate at MCSA and 7,866 ounces of gold at NX Gold. Focusing first on our MCSA operations in Curaçá Valley, we milled 607,959 tonnes grading 1.95% copper and achieved average metallurgical recoveries of 89.8% during the period. Contributing to milled totals at the Vermelhos Mine, 234,800 tonnes, grading 2.26% copper were mined during the period, a 27% increase in tonnes mined as compared to the fourth quarter of 2019. The quarter-on-quarter decline in grades mined was anticipated due to normal stope sequencing, and we continue to expect grades for the full year to be in line with our unchanged guidance, averaging approximately 3.5% copper from Vermelhos. At the Pilar mine, 347,125 tonnes grading 1.39% copper were mined during the period, in line with our unchanged guidance for the full year of approximately 1.4 million tonnes grading 1.4% copper from Pilar. As Noel mentioned, we achieved record C1 cash costs of $0.71 per pound of copper produced during the first quarter, reflecting the continued strong operating performance at MCSA and the weakening of the Brazilian real relative to the U.S. dollar. We are maintaining our 2020 production guidance for our Curaçá operations. However, in recognition of the significant movement in the Brazilian real during the first quarter, we have revised our U.S. dollar capital and operating cost guidance for the balance of the year. Our full year C1 cash cost guidance has been reduced to $0.70 to $0.85 per pound of copper produced from $0.85 to $0.95 previously. And while our capital program remains materially unchanged, our revised capital expenditure guidance range is $56 million to $68 million as compared to $74 million previously. While the total metrics of our exploration program remains unchanged, our drilling costs are benefiting from a decrease in the U.S. dollar cost per meter, as reflected in our revised exploration guidance range of $20 million to $25 million through September of this year from $28 million previously. Our growth projects at MCSA remain substantively on track. The high-intensity regrind mill delivery and installation remains on track for completion during the second quarter, an incredible accomplishment by the team to manage the project during this period of global uncertainty. Time line for commissioning of the new mill post installation is uncertain at this time due to global travel restrictions currently in place. However, our team is actively working through several possible scenarios, and I am confident we will be in a position to get the mill up and running as soon as practicable while ensuring our employees and contractors stay safe. The full-scale testing of our recently installed ore-sorting plant remains ongoing and according to plan. For the first half of this year, we will be testing a variety of different ore sources at varying grades through the Curaçá Valley with the goal of enhancing the value of these deposits through upgrading. We expect to be in a position to provide more detail on the results of the test program in the second half of the year. With respect to exploration in the Curaçá Valley, we currently have 26 drill rigs operating. Our exploration program continues to focus on the high-priority programs of the deepening extension of the Pilar Mine where we see continued high-grade continuity of a super part at depth, the down-plunge extensions of the Siriema massive sulphide conduit and the fanned drill program, testing for continuity of mineralization beneath the main Vermelhos bodies as well as several regional targets within the Vermelhos system.At the same time, our exploration team is busy advancing our greenfield exploration efforts, including both exploration drilling and ground-based geophysical work. This effort is currently focused on 4 newly interpreted mineral systems within the portfolio of targets defined during the company's comprehensive targeting work. Each of the new systems has an average strike length of 5 kilometers and contain multiple priority drill targets. While preliminary results are encouraging, additional detail on these ongoing exploration programs is expected during the second half of the year. We anticipate providing additional detail and result on our ongoing exploration program in our upcoming quarterly exploration update, typically released 4 to 6 weeks following our financial results. At the NX Gold Mine, ramp-up of mining activity continues to accelerate within the Santo Antonio vein, following the successful transition from the Bras and Buracao veins in late 2019. Production during the quarter totaled 7,866 ounces of gold and 4,868 ounces of silver from total mill feed of approximately 36,211 tonnes grading 7.76 grams per tonne gold at average metallurgical recoveries of 87.1%. Gold production, head grade and recovery improved quarter-on-quarter by 30%, 23% and 26%, respectively, reflecting continued work in phase development within the veins. C1 cash costs averaged $594 per ounce of gold produced during the first quarter, an improvement of approximately 39% as compared to the fourth quarter of 2019. The company continues to expect production to improve throughout 2020 and full year production to be weighted towards the second half of the year. Our annual production guidance for the NX Gold Mine remains unchanged at 38,000 to 40,000 ounces of gold at revised C1 cash costs of USD 425 to USD 525 per ounce of gold produced, a reduction of $50 per ounce for the full year. Annual capital expenditure guidance for the NX Gold Mine has been revised to between $7 million and $9 million, with an additional $2 million to $3 million to fund its ongoing exploration program. I will pass over to Wayne, who will provide an overview of our financial performance.
Thank you, David, and good morning, everyone. During the quarter, the company sold 10,432 tonnes of copper in concentrate and 7,526 ounces of gold for combined revenues of $67.7 million. While copper sales volumes were a modest 10% lower than the prior period, gold sales volumes were 30% higher than the prior period as ramp-up of mining activity continued to accelerate within the Santo Antonio vein. As David mentioned, we achieved C1 cash costs of $0.71 per pound of copper and $594 per ounce of gold during the quarter. These results were underpinned by strong operating performance from both of our operations and a significant weakening of the Brazilian real relative to the U.S. dollar during the period, both of which contributed to a $37.3 million in cash flow from operations, which is a record quarter for the company. Adjusted EBITDA was $33.4 million, reflecting a 7% increase over the prior quarter, a noteworthy improvement, given the significant 20% decline in copper prices over the same period. As Noel mentioned, we did have significant noncash foreign exchange impact in our first quarter results. We actively manage our BRL exposure through the use of currency collar contracts to hedge against the rapid strengthening of the real. The acceleration of the COVID-19 crisis during the quarter resulted in an unprecedented 29% depreciation of the real against the U.S. dollar to BRL 5.20 on March 31 from BRL 4.03 on December 31, 2019. This depreciation, coupled with increased volatility of the underlying cross-currencies, both contributed to a significant increase in the fair market value assessment of these term contracts, resulting in the $52 million expense in our income statement at quarter end. A further $27 million of foreign exchange expense relates purely to the translation of our U.S. dollar-denominated debt as a result of our functional currency being the real. While our headline net loss for the quarter was $53 million or $0.62 per share, after adjusting for those noncash items, our adjusted net income was $21 million or $0.23 per share fully diluted, which far better reflects the underlying performance of the operation and the company. At a corporate level, we amended our existing USD 150 million credit facilities during the period. This amendment reduced our overall cost of borrowing and deferred scheduled principal payments for 2 years, which now commence on March 2022. Our total cash position at quarter end was $45.5 million, including restricted cash compared to $23 million at year-end 2019. The increase is primarily due to the drawdown of our lines of credit, which was done late in the quarter as a proactive measure in anticipation of uncertain times. Our business continues to run well and generate significant free cash flow, and we anticipate having no immediate need for those drawn funds. On that note, I will hand the call back over to Noel for concluding remarks.
Thank you, Wayne. In summary, our first quarter performance can be summarized as follows: one, continued strong operating and financial performance in our core business, MCSA, and improving operating performance at NX Gold as mining activities of the Santo Antonio vein continue to accelerate; two, our growth projects remain largely on track; three, the benefits of the significant weakening of the Brazilian real relative to the U.S. dollar, significantly obfuscated by the noncash fair market value assessments that adversely impacted our GAAP profitability in Q1. An incredible effort by our teams in Brazil to mitigate the impact of COVID-19, protect all of our employees, contractors, augment the local response effort of our communities, and ensure continuity of operations, supply chains and sales channels. Thank you very much for joining the call. We will turn it back to the operator to open the line for questions.
[Operator Instructions] Our first question comes from Justin Chan of Numis Securities.
Congrats on a great quarter. I hope all of you are doing well. My first one is on -- I guess I have a few related to the currency stuff. But I guess the first one would be, looking at where the currency is now at BRL 5.70, are you -- do those further incremental devaluations go straight through to the cost line? And if your guidance is based on BRL 5, are your actual underlying USD costs continuing to come down as we see that or does it reach a natural limit?
I can pick up on the hedge side and I guess Wayne will pick up on the cost side. Look, on the hedge side, we hedge monthly going out 18 months. We don't -- on average, the rest of the year, we're 83% hedged. So 17% will just -- is unhedged so we benefit entirely from wherever the foreign exchange turns out to be on a spot basis as the year unfolds. The out of the money call that we've written, we benefit up to the strike of those calls, and then, of course, we don't benefit beyond that point. So we're in a period of -- you can think about it in terms of super profitability in BRL terms from our dollar revenues, and we're benefiting from that in terms of the revenue line. So I think we will continue throughout this year to see that impact. Now we've had a 2-standard deviation move in the spot price of the Brazilian currency, and obviously, that triggers the fair market values. You would expect as we emerge from the pandemic and markets settle down, as you're already seeing in the stock markets with the declining VIX, we expect that the foreign exchange volatility would decline as well, and there will be somewhat of a reversion of the mean of the BRL against the dollar. Time will tell how that plays out here, over what time period and as to where the spot meander to, but that covers our thinking in terms of the hedging. Wayne, do you want to pick up on the cost component?
Yes, sure. Thanks, Noel. I mean, I think one point just to add, Justin, on what Noel said is, obviously, we have the ability to roll the hedges, right? And we have proactively done that in the past and we'll continue to do that. So a lot of that is driven by the width of the collar we have. So we have -- we do have quite a bit of flexibility in that regard as well. With regards to the costs, I think what you're asking is does that flow down? Yes. I think we've always said that, I think, between 85% and 90% of our costs are U.S. dollar denominated. So if the -- sorry, are real-denominated, beg your pardon. And so yes, if you've seen the BRL 5.70 today, absolutely, we are recognizing that benefit.
Okay. And in terms of rolling -- sorry, go ahead.
Just that benefit flows through CapEx as well, as you've seen in our revised guidance.
Yes. Just in terms of rolling in, I guess, from a cash perspective, let's just say, imagine spot flat eventually would see some cash impact. But just from a modeling sense, I'm sure each of us is running our own commodity decks, but -- and currency decks. But just from a, I guess, a rolling perspective and a cash settlement perspective, I guess, what's the current thinking? Is there sort of a profile that we should think about in terms of sort of settlement and timing?
Justin, I'll jump in here. I think one of your peers in the analyst community at National had a look at that with regards to the -- there is extensive information out in the marketplace with regards to banks' forecasts as it relates to the exchange rate going forward over the next couple of years, and taking that into consideration is one way of looking at it. These -- the unfortunate thing with regards to the methodologies, they are required in terms of mark-to-market, do not take into consideration that these are fixed-rate contracts that run over a period of time. And so for accounting purposes, we need to revalue them as of today, whereas, as I said previously, they are fixed-rate contracts. So another way of looking at them is to be able to look at what the banks are saying or banks are forecasting for the exchange rate on a going-forward basis and measure those contracts as they continue to operate and expire over the intervening 18 months to 2 years with respect to that forecast.
Yes. And on the roll point, look, tactically, every month, we have -- we can make a decision. Do we feel like settling them or do we just roll it forward into another contract at the end in, say, 18 months' time or 2 years' time and then take full advantage of the short-term exchange rates. Pretty flexible way for us tactically to deal with what's going on in the spot market.
Okay, got you. That's very helpful. And just another one related to currency and then I'll free up the line. From a tax perspective, does -- can you just walk me through what, if any, kind of actual cash payment impact there is on taxes related to the exchange rates? Do you -- does your extra profitability in BRL terms result in higher cash taxes payable if this were to continue?
Well, yes. Justin, I mean, there's 2 elements to that. There's -- I mean, if the underlying business makes more money, we have to pay more taxes. But I think maybe the question is, certainly, on the losses, if we are booking losses, those are tax deductible. So perhaps I misunderstand your question. I mean, if we -- ultimately, whatever the profit -- if we have more profitability in Brazil, yes, we will use up our net operating losses there a little bit quicker and we'll probably be into more of a cash taxpaying situation. But again, there's a lot of variables that obviously go into that.
Our next question comes from Orest Wowkodaw of Scotiabank.
Just curious, given the Brazilian real devaluation, I'm just wondering if there's any impetus to actually increase your exploration budget, given that in U.S. dollar terms, it's actually coming down. Is there an opportunity to do that? Can you handle more rigs? Certainly, I'd love to see you, I think, focus more in terms of doing some more of the regional exploration sooner if possible.
Thanks, Orest. From your mouth to God's ear, yes, we'd love to be out and continue to increase drill rig count. I think at the -- under the current circumstances, I think that is difficult with regards to crews. Remember, we're -- while we're effectively working internally, we've also been able to get our contractors, specifically Major and our other 2 contractors on the drilling side to work with us in terms of looking at crew turnovers, et cetera, et cetera. That is quite a challenge in Brazil right now with regards to them being able to do that in and out. And so I think right now, yes, we'd love to be able to add more rigs. But under the current circumstances, I think at 26 at MCSA and another 5 at NX Gold, I think we're at where we can be right now, all things considered.
You talked about, I think, a focused sort of 6-month drilling campaign at the Pilar deeps, but since then, the strike length seems like it's gotten a lot bigger. I'm wondering if that now means that you're going to spend a lot more time drilling out the Pilar deeps. And also curious what the cutoff is for making the new, I guess, 43-101 that will come out late this year?
Great questions. So as you know, the deeps remains open to the north. Our ability to continue to drill to the north is constrained at the moment by the underground exploration development drives that we have in place. We had hoped and are still hoping at some point this year to be able to bring in a drill -- a directional drilling specialist to be able to allow us to at least look into the north and see how the ore body is looking to that point, further to depth and north. But as it stands right now, those 5 drill rigs that we have there are specialized to be able to stay there. And so they will continue to drill out the deeps project for the balance of the year because once we drill out for the pre-feas, some of those rigs, maybe not all of those rigs, will remain in order to start doing the infill drilling to get that into stope design, et cetera, et cetera. With respect to the drilling, the drilling will continue, and it appears to be, right now, through the end of September will be the drilling that will be incorporated. We're hoping to do that. The first crack that the engineering team will get with the resource will be something at the end of June, July. But we are hoping to be able to include through the end of September with regards to the project. So yes, hopefully, that answers the question that you're seeking right now, Orest.
It does. And does that mean we should anticipate kind of a December timing for the updated mine plan 43-101?
No, we're still -- we are putting the study in front of the Board on November 8. It would be our hope to be able to release an updated 43-101 to the marketplace within a couple of weeks thereafter.
Our next question comes from Raphael De Souza of CIBC.
So the first one is on the regrind mill. So just wondering if you were to see some delays in commissioning, what sort of impact should we expect to your 2020 copper recoveries?
Great question, Raphael, and good to hear from you. With respect to that, I mean, a lot -- it's difficult to say. We don't anticipate -- it all comes down to when Brazil reopens the border to international travel. We're hoping to get some clarification with that over the next couple of weeks, as you well know, with regards to the softening Brazilian. The team in Austria is ready to travel when the border opens. If they're able to travel relatively soon, we would hope to be able to be finishing commissioning in August, which would result in a 4- to 6-week delay.
Okay. And just since you're mentioning Brazil, maybe I'll take the flip side of Orest's question. So can you remind us how much could you cut in your exploration program if things continue to escalate in Brazil in terms of COVID-19 and if you have to do some liquidity containment matters?
Right. So with regards to that, we've run a number of different scenarios with regards to exploration contingencies, with regards to capital contingencies. With regards to exploration, we have 3 to 4 different scenarios in terms of looking at cutting. I think when we look at the overall program, I think there are certain parts of the program that are sanctimount, that would be cut as a very, very last resort. And that would be the drilling at the deeps project, the use of the big RC rig in the greenfields exploration and the underground rigs at the Vermelhos Mine doing that program. So those are pretty much sanctimount, but with regards to the other parts of the program, we can cut and move and adjust as necessary with regards to that. In terms of where we gain comfort with regards to our ability to continue to operate, one of the things about our exploration program is our crews are spread out throughout the valley. Both Major and our other contractors have their own separate bases of operation away from town. And so they are somewhat insulated, not entirely, but somewhat insulated with respect to any impacts. And that's being done deliberately by us as well as our contractors. We would much prefer that when we have shift changes with our contractors, that we have -- we actually have a quarantine protocol in place in which they have rented houses out in the valley away from impacting our communities, thereby allowing us to implement the 2-week quarantining of crews coming in, in order to help the crews going out. So we can cut, but as we see it right now, with respect to that, we don't see any reason that, that being on the horizon. Obviously, it's a moving situation in Brazil right now.
Okay. And just to stay on COVID-19, do you have any updates on the third-party lab closures you mentioned recently in your exploration update?
Yes. So our third-party lab closures are primarily related to labs in South Africa that are doing our platinum and ICP work as with respect to the Siriema exploration drilling. The only way we can give you any guidance with regards to that is we're in the same place as everybody else. South Africa has a very restrictive quarantine in place, and so we are like everybody else with respect to waiting for those labs to open up. There are some backlogs with regards to ALS in Brazil but not as severe. Outside of that, everything else gets assayed in our own labs at the mine.
Our next question comes from [ Chris Curry ] of [ Goodwin Funds ].
I wanted to ask you a question about your gold assets, whether there's been any updates, change of strategy or anything you can share with us.
Chris, thanks for the question. With regards to strategy, our opinion remains unchanged right now. NX Gold is an operation that we see significant upside to. And when we evaluate the opportunity, and we've spoken to many people in the past, we use the reference from the Austin Powers movie, is it's very much a Mini-Me of MCSA in that we are -- have an underutilized mill with a very large exploration land position and one that I think our skill sets as a team lend very, very well to with regards to continuing to add value at that asset over the near to medium term. Certainly, once we've unlocked the values that we see inherent, that being exploration within the district and starting to increase production within the mill to get -- utilize the full capacity of that mill, then obviously at that time, we may have another relook at the strategy with regards to how it sits in our portfolio. But right now, we feel that we can add as good, if not better, than anybody else with that asset, and so it remains an integral part of our company.
Great. If I could ask another one, too, more of a sort of a big picture question, if you could help me understand sort of the politics of Brazil. There's -- certainly, the president's in the news a lot with different views. And I'm wondering how you see Brazil -- Brazil's maybe standing in the world stage and how that might impact the mining sector.
Noel, why don't you take that one?
Yes. We don't really have a point of view on Brazilian politics because we're not Brazilian. We take a strong view that it's for the Brazilians to decide how they should run their country. We operate our mines in Bahia and Mato Grosso the best we can with our local partners. We find that the approach in Bahia and Mato Grosso as being rational, helpful, cooperative, sensible, and we work hand-in-hand with the local municipalities to try and come up with the best strategy that helps them as well as helps our operations. I think the key quality criteria is, apart from minimizing exposure of people to this virus, is also helping manage the confidence of the local communities. If they're confident that there are good procedures in place, if they're confident that we are, as the biggest employer in the area, are doing the best we can to ensure the safety of everybody, then I think that goes a long way to creating the right mindset that you can adopt at the end of the day, wherever you are in the world, we're dealing with this virus, it's a pandemic. And so we're all in the same boat and we're just trying to work our way through it.
Our next question comes from Jackie Przybylowski of BMO Capital Markets.
Congrats on the quarter. Sorry, I couldn't figure out how to cancel my question request, but Orest and Raphael already went through everything I wanted to ask so I don't have any questions for you, but thanks very much.
Thanks, Jackie.
[Operator Instructions] Our next question comes from Stefan Ioannou of Cormark Securities.
Just maybe a slight follow-up to a question there to Ralph. Just -- he sort of talked a little bit about like sort of worse comes to worst, doomsday scenario and you do need to sort of bolster liquidity cutting exploration. Just in terms of the actual CapEx budget, I know it's come down as well this year but on the Brazilian real's weakness, are you pretty comfortable with that new budget now that you can do the entire program as originally planned this year? Or is there any sort of nonessential sort of components in there that could maybe be moved aside to or deferred to next year as well? Or is exploration really the first thing that would sort of see a cut again in a worst-case scenario if it, God forbid, came to that.
Thanks, Stefan. As I said, we have spent a significant amount of time pressure-testing our cash flows, our operations with regards to various scenarios that we've looked at. And by no means is exploration the first item that gets cut with regards to that. We do have some other discretionary capital items that we can, if we feel we need to, that would probably be cut before we'd start stepping into the exploration program. However, we are extremely comfortable right now that we can effect the business plan that we -- and that includes our exploration program as well as our capital program that we laid out at the beginning of the year with regards to the company. As it stands right now and within the market that we see right now, we are comfortable. We are not naive. We are constantly monitoring the situation and we will continue to do that. But we are comfortable that we have pressure-tested everything within our organization to feel comfortable at this stage that we don't have to make any change to our strategy or our operating methodologies for the year.
This concludes the question-and-answer session. I would like to turn the conference back over to David Strang for closing remarks.
Thank you, operator. And again, thanks, everybody, for coming on the call. It's a trying time for everybody, albeit hopefully, we're starting to see a little bit of light at the end of the tunnel with respect to the COVID-19 pandemic. We are always available, and so please do not hesitate to contact any one of us should you have any questions or want to have any follow-up with regards to the earnings call. And we hope to be able to talk to you like we have previously during the course of the next quarter and provide you with updates as and when necessary. Thanks.
This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.