Centerra (U.S.) Inc. (CG) Earnings Call Transcript & Summary

Greetings, and welcome to the Centerra Gold Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Tuesday, February 22, 2022. And I would now like to turn the conference over to Toby Caron, Director of Investor Relations. Please go ahead, sir.

Thank you, Jennifer, and thanks, everyone, for joining our call today to discuss Centerra Gold's acquisition of the Goldfield District Project. Today's call is open to all members of the investment community and media in listen-only mode. As we are in the quiet period before our year-end results release, which will occur this Friday, February 25, we will not be taking questions, but I ask that you direct them to our earnings conference call on Friday. Joining me on the call today are Scott Perry, President and Chief Executive Officer; and Malcolm Stallman, Vice President, Exploration. I would like to caution everyone that certain statements made today may be forward-looking statements, and as such, are subject to known and unknown risks, which may cause our actual results to differ from those expressed or implied. Please refer to the caution regarding forward-looking information in our news releases and our other filings, which can be found on SEDAR, EDGAR and on the company's website at centerragold.com. And I'll now turn the call over to Scott.

Thanks a lot, Toby, and a very good day to everyone. Very excited to be hosting this call today. Just obviously, this represents the next phase of growth for Centerra. So it's exciting. But before we get going, I just want to start off by taking a moment to explain the protocol for this conference call. Just to reiterate what Toby said, normally, we would not be convening a conference call so close to the announcement of our year-end financial results. But look, having said that, we didn't want to miss the opportunity to provide some color on our thinking and our plans for the Goldfield acquisition to the investment community. Unfortunately, though, just given the close proximity to our year-end financial results, we're actually in what we deem a quiet period per our disclosure regulations. So we will not be able to take any questions on today's call. But as Toby mentioned, we certainly invite you to ask those questions about this acquisition during our year-end financial results conference call, which is scheduled for this Friday, February 25. In terms of the remarks I'll be making, I'm really referencing the accompanying acquisition investor presentation deck, which is available on our website, and I'm just starting off on Slide 4. So look, with this transaction, we now expect to be entering into an exciting and enhanced growth chapter at Centerra through the acquisition of the Goldfield District Project. We really expect that this is going to underpin our organic growth over the medium term, and we also expect that this will favorably recalibrate our geopolitical risk profile, which we think should be advantageous just in terms of Centerra's future valuation. I, myself, I'd categorize this investment as a very measured organic growth acquisition that is certainly well within our financial means and capacity, and I'll touch more on that shortly. In addition, we think there's some strong industrial logic here just in terms of our ability to leverage the operating, development and exploration experience and success that we've already had with our operational mine, just given the numerous similarities between Oksut and the Goldfield District Project. In terms of the transaction value, $175 million is the upfront cash consideration, which in terms of the identified value proposition, we believe this investment is going to produce a meaningful accretive transaction across a number of metrics, especially so in terms of increasing the future pro forma gold exposure per share of Centerra, be it incremental reserves, incremental resources, the incremental production per share all the way through to the future economic contributions per share. And all of this is underpinned by the fact that we are funding this acquisition with 100% cash, which obviously results in no increase to our share count upon closing. Just moving on to Slide 5. One thing you'll note, today's presentation is nonspecific in terms of the conceptual resources, production profiles and project-specific financial profiles, which is again to be consistent with our disclosure regulations whereby we here at Centerra are not in a position time-wise to provide qualified person certifications on any of the vendors' previous studies. However, do note our immediate plan following closing will be to refine those existing technical studies with a new Centerra altered resource update, which is expected to be released in the first half of 2023 and thereafter, the finalization of a new updated feasibility study. What I will say is that based on our extensive due diligence and analysis, we are quite confident in our expectation that those future studies are going to showcase that the Goldfield District project is going to be quite similar to our operational Oksut Mine with perhaps even more meaningful exploration upside, just given the significant land package and the underexplored nature of the property. What we're putting forward here on this slide is some compelling strategic rationale. First and foremost, this transaction is going to represent the addition of a high-quality development project that we think is going to have quite low capital intensity. The conventional open pit heap leach project and it's already in late-stage development, and it's a very similar approach in terms of what we built and are now operating at our Oksut Mine in Turkey. We anticipate that when an operation it's going to represent meaningful future low-cost production, which will be very beneficial in terms of Centerra's company-wide medium-term organic growth. And as I mentioned, one of the great things about open pit heap leach projects is they tend to be at the lower end of the capital intensity spectrum. So again, we think this is going to be similar to the experience that we had with Oksut. The second row on this table, just in terms of the improvement in our geographical profile, I mean, this really provides a new platform of operations. But importantly, a platform that is domiciled in a Tier 1 mining jurisdiction. The project itself is located in the Esmeralda County, Nevada, which is obviously a world-class mining friendly jurisdiction. We are already seeing strong partnership and advocacy from the various representatives, be it in the county, be it the state regulators and likewise in terms of the nearby town of Goldfield. Increasing our exposure to North America, we think will be advantageous in terms of our overall geopolitical risk profile. And as I mentioned earlier, we think that should be beneficial in terms of underpinning a more robust valuation moving forward. Just in terms of the third bullet point, what we're seeing here conceptually is a relatively short construction period. The project in a lot of respect, is quite heavily derisked, especially so in terms of the conceptual first Phase 1 of the project's development. As I mentioned, our immediate plan will be to further refine the existing technical studies undertaken to date by Waterton, and we expect to have a resource update released in the first half of 2023 and very shortly thereafter, we'll have an updated feasibility study. One of the things I wanted to just note is that in terms of our due diligence, which has been extensive, and I'll touch on that, we've seen very good support just from a license to operate perspective or just from a community and a regulatory perspective. One of the significant derisking initiative that has already been completed by Waterton is the relocation of a major section of Highway 95. I think this speaks volumes just in terms of the support of this project has already been receiving from a number of the key stakeholders. The fourth bullet point, just in terms of leveraging our existing expertise, one of the great things here and one of the things that we sort of drew a lot of assurance and comfort from is it really felt very similar to our Oksut project and shareholders in Centerra will know that we've had some quite good success in Turkey just in terms of our experience operating in country, but also in terms of the build, the move into commercial operations and the results thereafter that we've been showcasing at Oksut. So we're going to be certainly looking to leverage a lot of that development, that operating, that exploration expertise that we've obtained with our Oksut Mine. And again, that was a project that we constructed on time and under budget, and we're certainly looking to parallel a lot of that success. The second last bullet point here, just from a prospectivity perspective, I think one of the things that we really found very attractive was the size of the land package but also just the high degree of prospectivity as well as the overall endowment that we've seen at this project and its associated land plan. In terms of our modeling and our evaluation, we're seeing substantial upside potential, and we'll be obviously looking to see if we can bring that to fruition moving forward in terms of our exploration program. It's a very large land package represents some 65 square kilometers. And in terms of an endowment, historically, this land package has produced some 4 million gold ounces. Our exploration team has already identified numerous drill-ready exploration targets, and we believe these targets have the potential to expand the known free deposits as well as extending the conceptual mine life. Just my last bullet point here, just in terms of due diligence, I want to note this is a project that has -- or an opportunity that has been under study for nearly 2 years. We've been evaluating this project. We've been studying this project and have been particularly focused on ascertaining how can we, Centerra, add value here, again, looking to leverage the success that we've had with our operational Oksut Mine. And again, just given the strong similarities that we see with Oksut and the Goldfield District Project, the team has extensively due diligenced all facets of the conceptual operation from exploration through to infrastructure, through to business unit operating productivity profile as well as even undertaking an additional hydrology drilling investment. Our return on investment capital thresholds at Centerra are relatively high. But I think excitingly, the investment value proposition that we're seeing here, it screams favorably. And so upon finalizing the new feasibility study, we, Centerra, envision showcasing a compelling rate of return projects and investment opportunity. Just moving on to Slide #6. As I mentioned earlier, this transaction represents the acquisition of a high-quality development project and importantly, one that comes with significant exploration upside. Just referencing the left side of the slide, in terms of the project overview, obviously, it's located in Nevada, which is a fantastic Tier 1 mining jurisdiction, very strong history there and it's located in a region that is well endowed. As I mentioned earlier, historically, we've seen some 4 million ounces of gold produced from this region over the last 100 years. The second bullet point, the project is very similar to our Oksut operational gold mine being a conventional open pit heap leach project. We have 3 known deposits being the Gemfield, The Goldfield Main and the McMahon Ridge deposit. They are illustrated on the right of this slide. In terms of the conceptual development here, it's really going to be approached most likely in 2 phases. Phase 1 would be the development and operation of the Gemfield deposit and then Phase 2 is when Goldfield Main and McMahon Ridge deposits will be brought into operation as well. I just want to highlight, I know I'm speaking a lot about the exploration upside, but the Gemfield deposit, which you see illustrated there in the schematic, this deposit when it was found was originally under cover. There was no surface expression. So again, I just think it speaks to the prospectivity and the potential of this deposit. But it's an underexplored package of land claims. So it's something that we'll extensively and strategically investing in. In terms of the processing methodology here, it's, again, similar to Oksut in a lot of respects. It's 3-stage crushing, typical heap leaching, followed by your ADR plant treatment to produce your result in doré. So again, exactly the same as Oksut albeit Oksut is 2-stage crushing. As I mentioned earlier, the property claim, the land package, is significant, 15,000 acres or some 60 square kilometers. And again, in terms of our due diligence, that really underpins a lot of the conviction that we have in this opportunity. We see significant potential here. We know these land claims are under explored. In terms of our base case valuation, the value proposition attracted us to this opportunity. But in terms of our upside scenarios when we started to factor in different degrees of exploration success and additional resource conversion, in terms of the mine longevity that you can conceptually see here, it was very quickly a compelling, attractive value proposition and return on investment capital. Just moving on to Slide 7. So in terms of the jurisdiction itself, Nevada, I think consensus would put forward or advocate definitely a Tier 1 mining jurisdiction. And so again, for Centerra, we think that provides a new platform of operations for us. And as I mentioned earlier, that should only be beneficial in terms of our jurisdictional risk profile or our geopolitical risk rating. And I think that's going to underpin hopefully some robust valuation as we move forward. The property, in terms of accessing the property, it's via U.S. Highway 95 from Las Vegas. Being Nevada, you obviously have a significant pool of labor talent. We have a very strong mining experience. During our due diligence, there's been a lot of interactions with the stakeholders, with the regulators, with the county officials. And I feel comfortable representing that we're seeing strong local support. And again, I think what's even more symbolic of that and this is to Waterton's credit is the work that's already taking place on moving Highway 95 to facilitate the eventual development and operation of the Goldfield District Project. Nevada, obviously, a world-class mining jurisdiction. You can see in terms of the map here, we just illustrated, a lot of history here, a number of nearby open pit heap leach producing gold mines as well as other development stage projects. So I'm pretty excited about this, just to be upgrading our portfolio to be increasing our presence in terms of where our asset value or where our resources are domiciled. I think the more we can increase our North American presence, I think that's going to certainly position us well just in terms of our valuation moving forward. And I think even -- secondly, I'd just highlight, the ability to bring this transaction to Centerra, I think it's fortunate because I think it is a strong value proposition and being underpinned by that sort of top-tier jurisdiction, that can be difficult. That's rare that you find these opportunities. So something that certainly underpins my excitement. Slide 8. I've mentioned this a number of times. We think the project is analogous to Oksut. We think there's a number of similarities here. As you can see in the top banner, the Goldfield District Project, this is envisioned to be a conventional open pit heap leach project, very comparable to our Oksut operational gold mine. And Oksut itself, that's been a great experience for us. Our team delivered that project on time and under budget. And since the project commenced operations, we've produced in excess of 200,000 ounces of gold to date. And just down the bottom of the slide, I'd just note that these images are photos of our Oksut gold mining operation. So referencing the left of the slide, again, in terms of the similarities, open pit heap leach, very conventional approach, simple method in terms of processing, something that we've got an increasing amount of experience in. And likewise, we think this project has a very meaningful exploration. We think that's going to be a very meaningful opportunity for us moving forward here over the medium term. The fourth bullet point, one of the things that I highly covet is a very low capital intensity. So conceptually, what we're seeing here, we're seeing similarities to Oksut in terms of the envisioned sort of capital construction costs, and that's obviously advantageous. And as I mentioned earlier, we think in terms of license to operate, in terms of support from the stakeholders, again, be it community, regulators, local county, we think strong support has been established. And that's, again, credit to the vendor of this project. On the right of the slide, just in terms of the advantages when it comes to heap leach operations, it's a smaller footprint and obviously it comes with a -- tends to -- typically comes with a lower environmental impact, especially noting that there's no need for tailing storage facilities. Again, one of the advantages is the low capital intensity I spoke to, and then likewise, we typically see lower unitary operating costs. And again, this project, I think, conceptually, that's what we're seeing. This will be a meaningful source of high-quality, low-cost production. And I think it's going to be relatively consistent with where our current company-wide sort of operating cost profile is. And then lastly, just the potential to incorporate additional resources from any nearby sort of exploration success, any satellite deposits that we may identify. We see the potential here to bring those into operation at relatively -- at relative ease. And what really supports that is just the lower unitary costs. So when it comes to what is the potential radius in terms of where we can be looking at opportunities within this large land package, I think the low unitary cost structure that we see here is going to underpin a wider radius. So again, large land package and a lot of potential here on the exploration front. We see, in terms of the mine longevity, I think there are opportunities here in terms of additional resource expansion. But I won't say any more on that because joining me on the call today is Malcolm Stallman who is our Vice President of Exploration and our Global Head of Exploration. I just want to pass over Slide 9 to Malcolm, just to Malcolm, to provide his observations and his color. So with that, Malcolm, if I can pass it to you, please.

Right. Thank you, Scott, and good morning to everyone. I'll be presenting you with a brief summary of the geology and history of the Goldfield District project. And I'll outline to you why we are very excited about what we believe to be the substantial exploration upside within the property. As Scott said, I'll be referencing Slide 9 in this part of the presentation. As has been mentioned, the Goldfield District Project is a well-endowed, but underexplored property located in a Tier 1 mining jurisdiction. Geologically, the property covers the majority of a significant advanced [ geoloculturation ] system, which hosts world-class high sulfidation epithermal type gold, silver mineralization. Some of the key geological features observed within the project area that are common to all world-class high sulfidation districts include: firstly, a large silica alunite alteration footprint, which in this case is approximately 30 kilometers by 20 kilometers in size; secondly, evidence of both stratigraphic and structural controls on ore emplacement; thirdly, ore being hosted in several lithological horizons; and fourthly, district scale metal zonation. The prolific gold endowment of the project area is evidenced by its past production and the more than 300 known historical workings in the area that are recorded in the United States geological survey database that was compiled in the early 1900s. However, using Google Earth images, it can be seen that there are many tens of unrecorded small shafts, trenches and pits within the property. We believe that all these attributes provide many opportunities for the discovery of further mineralization within the project area. As Scott mentioned, the Goldfield District has a long history of exploration and mining. But despite this, it is still underexplored and remains highly prospective. Historically, gold was first discovered in the area in 1902. The Goldfield District produced approximately 4.2 million ounces of gold at a reported average grade of approximately 18 grams per tonne or roughly 0.5 ounce per tonne gold between 1903 to the early 1920s. The details of this production, which is deemed to be historic and not 43-101 compliant are listed in the United States Geographical Survey Report referenced at the bottom of the slide. Since the 1920s, mining operations in the district have been sporadic and relatively minor, comprising the treatment of tailings, limited underground mining and small-scale heap leaching. The project has only undergone limited systematic modern exploration. The property comprises a land package of just over 60 square kilometers of [ tenure ]. Historically, the highly fragmented and complex landholding situation meant that district scale systematic exploration could not be undertaken. Consolidation of the land package only began in earnest in the early 2000s with most of the modern exploration since then having been focused around the known deposits. During our due diligence, our analysis of the project drill hole database shows that approximately 88% of the holes drilled and 87% of the [ matrix ] drilled has been in the vicinity of the known deposits. And so it's considered that significant potential remains for new discoveries to be made within the extensive underexplored parts of the project area. As mentioned already, the project comprises a highly prospective land package and our analysis and interpretation of the available exploration data shows the project contains an exploration pipeline of targets that range from resource stage and drill tested targets, to untested or partially tested geochemical and the geophysical targets through to untested conceptual targets. In terms of resource expansion and exploration upside, multiple opportunities exist to add resources to infill and resource expansion drilling through prospect scale and regional scale exploration drilling and through the acquisition of further land within the district. The map on Slide 9 shows the outline of the land package plus the location of the 3 main deposits, all overlaying on a grade times thickness heat map, which is the reds, blues, greens and yellows and also the contours of the gold and the soil anomalies are shown. Our highest priority targets relate to the vicinities of the known deposits, where there's good potential to increase the resources of heap leachable oxide gold from extensions to known mineralization and from deeper horizons in the vicinity of the known mineralization. Again, on the map, you can see the heat map which shows the areas that have been drilled and in which potentially economic mineralization has been intersected and this requires follow-up. Additionally, there is potential for further resources to be defined about relatively well-defined targets such as the Adams prospect and the strike extensions of the McMahon Ridge deposit. For example, small-scale open cut mining and some drilling was carried out in the past at the Adams prospect and multiple anomalous drill intercepts require interpretation and follow-up. For the McMahon Ridge area, a strong gold and soil anomaly supporting high-grade rock chip samples extends southeasterly from the deposit for over 2 kilometers. Only a dozen or so holes have been drilled into the zone, and it's a target for immediate follow-up. And on the map, you can see the soil contours there heading to the Southeast from the McMahon Ridge deposit. Lesser developed targets within the project area include the large areas of silica alunite alteration, which is a favorable indicator for potential gold mineralization in these types of mineral systems. Many of these zones of alteration and associated soil and rock chip anomalies, some of which are coincident with old mine workings. Very few of these zones have been adequately drill tested, and they require further investigation. Again, on the map, you can see the contours with the soil anomalies. And for instance, one example in the south, there's an underexplored 3-kilometer long gold and soil anomalous trend that requires further work. Another very significant target within the project area is the large areas of shallow recent cover where surface geochemistry doesn't work, but old shafts and very limited drilling have shown that there is alteration and mineralization beneath the thin cover. As Scott mentioned, the best example of this is the Gemfield Deposit, which was only discovered in the early 1990s. It is located between -- beneath thin alluvial cover and has no surface expression and was therefore missed by the historic miners. It was discovered through structural modeling and the use of induced polarization geophysics. Given the extent of the covered regions within the project area, we strongly believe that further deposits will be found beneath covered areas. While the main focus is exploring for shallow heap leachable Oksut gold mineralization, the potential for narrow zones of very high-grade mineralization in steeply dipping feeder zones cannot be ignored. This was the material that was mined historically. Further to this, it should also be noted that much of the resource definition drilling around the known deposits was vertical and that this means it could have missed many of these narrow high-grade feeder zones. And so these future drilling will be angled and the intersection of these high-grade feeder zones may add substantial ounces to the resources. In summary, the Goldfield District Project is highly prospective and underexplored, and we strongly believe that there is substantial potential to expand the existing gold resources and to find new mineralization within the project area. So we are looking forward to getting on the ground there and getting drills running. We have multiple targets to follow up, and we have high expectations that we'll be successful. Thank you, and back to Scott.

Thanks a lot, Malcolm. Just on Slide 10. So with this acquisition, we obviously think this is an excellent fit for Centerra. In terms of our analysis, our evaluation, we think the Goldfield District Project has the potential to be a source of low cost production that is only going to strengthen Centerra's operating portfolio moving forward. It represents the opportunity here to add a high-quality development project that's going to underpin meaningful organic growth on a company-wide basis here over the medium term. One of the key facets that I've touched on is the jurisdictional profile. So Centerra establishing this meaningful platform and presence in Nevada is obviously going to go a long way in terms of improving our geographical profile moving forward. Being a conventional open pit heap leach project, we're envisaging a relatively short construction time line and with that relatively low capital intensity. And most importantly, again, just given the large number of similarities between Oksut and the Goldfield District Project, we really do think that we can leverage our existing operational development and exploration expertise. And then as you've heard myself touch on and Malcolm just expand on in more detail, the large land package, we think, is very attractive, very prospective, and we think it's relatively underexplored, and that could provide substantial upside potential moving forward and especially so in terms of how much that could move the pendulum when it comes to our overall conceptual sort of value proposition here and result in return on investment capital. So I think the key takeaway here, as per the slide is we think this is an excellent fit to Centerra and is going to be an additional source of relatively high-cost, low-cost production that will be very important for our diversification moving forward. Just moving over to Slide 11, this is still conceptual, but to tease-out, just in terms of what we're envisioning for the project, here is our sort of current sort of 4-year plan in terms of how we see the project development moving forward, really sort of 3 key phases, if you will. First, on the left of the slide will be an 18-month definition phase. And you can see each of the key deliverables that we'll be undertaking as part of that phase. The first 5 has already been completed, which is to the credit of Waterton, the project vendor. So you can see the additional activities we will be embarking on over the next 18 months. Some of the more important ones from my perspective is obviously going to be the exploration investment that we're going to be making, but also the commitment that we're making today to be providing a resource update by the first half of 2023. And then coming off the back of that resource update, we'll be working on a lot of engineering and finalizing a feasibility study for the project as well as a technical report update, and we expect all of that to be completed after the resource update. And that's what's going to really allow us to showcase what is the value proposition here, one with which I think is going to be quite compelling. As and when we finish those various sort of definition studies that will allow us to move into detailed engineering and then ultimately moving into the construction phase. And again, that is approximately sort of a 2-year sort of time line. And again, I would just note that, that was largely consistent with our experience at Oksut. And then obviously, thereafter, once you've completed your engineering, that gives us the ability to take this opportunity to the Board in terms of making a potential construction decision or for the Board to sanction a build decision. And if as and when that was granted, you can see the ramp-up phase on the far right we think will be relatively quick, which again is similar to our experience at Oksut. Just moving on to Slide 12. I just want to touch on Centerra, sort of more company-wide basis, if you will, just in terms of our overall financial flexibility. As per the banner at the top of the slide, the acquisition of the Goldfield District Project, it still provides a lot of flexibility for Centerra to -- obviously, to embark on this transaction, but also to continue delivering on other shareholder-friendly capital return initiatives that are being considered over time. And in terms of the table on the left of the slide, you can see in terms of our treasury profile, we've got a very strong liquidity position. If I reference the table section, you can see our overall liquidity is some USD 1.3 billion. In terms of this transaction that we're announcing today, we've got the $175 million upfront payment, but we certainly have significant financial resources and the means to fund this acquisition. The last one on the table, I just want to note, this is as per our guidance this year, we're guiding for free cash flow of up to some USD 250 million. So again, in terms of our -- I'm going to categorize it as a peer-leading sort of balance sheet. We see that balance sheet continuing to grow here over the course of this year, notwithstanding the acquisition of the Goldfield District project. So in terms of the bullet points on the right, I think we're certainly advocating that we have a strong ability to fund this acquisition, and we're doing so with cash. And I think that's important just in terms of best ensuring, we're going to be maximizing the overall value accretion here in terms of not growing our share count moving forward. So really, again, significant financial flexibility and as at the top of the slide, I think it's advantageous just in terms of our overall positioning when it comes to delivering on future sort of shareholder-friendly capital return initiatives that we will be considering over time. So just to sort of wrap up today's sort of conference call, just a few key points I want to reiterate, I think what we've put forward here is some very compelling strategic rationale. We think this is a great opportunity to add a low CapEx, low capital intensity, high-quality development projects to our portfolio and just what that means for our medium-term organic growth moving forward. In terms of Centerra's geopolitical risk profile, the addition of this asset means more domiciled North American presence. And I think that's going to be favorable in terms of underpinning robust valuations here over the medium term. In terms of the conceptual construction time line here, we think it's relatively short. And again, we think it's going to be a similar sort of proposition to what we saw of our operational Oksut gold mine. And so therein, we think we've got a great opportunity here to really leverage a lot of that experience, to leverage our operational experience, our development experience, our exploration experience that we've had at Oksut and really try and apply that here at the Goldfield District project. And then exploration, a significant land package, it's underexplored on a number of fronts, and we'll be certainly making the investments to see what opportunities we can bring to fruition there. And I think most importantly, we feel like we know this project really well. It's been under study since 2020. The due diligence has been extensive. And I think this is a very measured step that we're taking here in terms of what we're announcing today. So I'm very excited. I look forward to the team completing the resource update, completing the feasibility study and then that's putting us in a position where we're going to be pretty excited to showcase this next phase of organic growth for Centerra Gold. So with that, I'm going to look to wrap up the call. And as I mentioned at the outset, unfortunately, we can't do any Q&A today, just given how close we are to releasing our year-end financials, but we certainly encourage all participants to join our call this Friday when we're announcing our year-end financial results. But with that, I wish everyone a good day, and I'll pass the call back to the operator, Jennifer, just to close out the call.

Thank you. And that does conclude the conference call for today. We thank you all for your participation and ask that you please disconnect your lines. Thank you. Have a great day.