Metro Mining Limited (6ME.F) Earnings Call Transcript & Summary

Welcome to everybody who's joined us today online. We are with the CEO of Metro Mining, Mr. Simon Wensley, who's going to give us an update and some color to the recently released quarterly activities report. We'll hand it over to Simon to discuss. We'll have plenty of time for questions at the end, so please send them through on the chat, which you'll find at the bottom of the screen, and we'll try to get through as many as we can. Over to you, Simon.

Thanks, Peter. Thanks, everybody, for joining. I really appreciate your time and the support of Metro Mining. Yes. So the quarterly report came out yesterday, and I just want to highlight a few areas. So look, I think from a production point of view, I think the production numbers were solid. And I think from my point of view, still -- there are sill continuing opportunities to drive higher output. And it's particularly we're seeing the throughputs, the top-end throughputs really coming to bear now in terms of the ability. We're effectively able to produce at around about that sort of 8.5 million tonne run rate. I mean, and if I reflect back, I think the journey over the last sort of 3 or 4 years, I mean, the team on site after -- back then was 10,000 tonnes in a day was a good day. Now they're not satisfied if they're not doing over 30,000 tonnes. So -- and we certainly saw in September, the first half of September and some really strong consistent production over a couple of weeks. As always, we're trying to balance all things. We're trying to balance, I suppose, that output. We're very focused on continuing to be a lean producer. We're a remote site. And anything we do up there is relatively expensive. So we're trying to stay lean. If you bring a piece of equipment up there, it basically stays for its life. I mean the cost of mobilization up and that means that, that is effectively the outcome. So we're very judicious about that and about driving productivity. When you have a spurt like we had in September, then you start to see other parts of the system where the bottlenecks are. And again, that's continuing focus for us to try to debottleneck the system. So 2.25 million wet metric tonnes probably still had some opportunity there. And I think when I then look at the cash flow and how that occurred. I mean the timing, 2 or 3 more days would have seen an additional almost $30 million flow into the cash generation for the quarter. And that -- by those sort of thin margins, you see receivables become cash. I mean we, at the end of the quarter, had 1 Newcastlemax, 201,000 tonnes sale the following day. On the 1st of October, we also had a second vessel, which had about 135,000 tonnes which a couple more days to load and then that was gone. So literally, we get paid a couple of days. What doesn't matter whether it's CIF or FOB, we sell on a letter of credit by site, and that means that we get once the bill of lading and the quality results come in, then we get paid pretty much straight away. So 5 more days would have seen. And that had we kind of driven our production slightly harder that quarter, that would have ended up in the cash flow. So look, those receipts are still there. We are expecting another stronger quarter I'm hoping, and we are driving for still to try and meet the original guidance. That is our internal -- certainly, our internal intent, and we've made -- we're continuing a made and continuing to make changes to drive. An example of that is that one of the constraints we saw at the back end of September was that our stripping was getting overtaken by the mining. And so we've for example, moved to a 24/7 stripping, sort of night shift, day shift and night shift over the last 2 weeks to drive that productivity and tonnes higher. So that's just an example of the changes we're making. But of course, I'm very conscious about continuing to try and take costs down. Costs did come down as we had flagged that they would. And so still, again, more to go there, we really drive, I think, at this time of the year, we can certainly still see another few dollars coming off cost as we sort of try and head back to that sort of roughly AUD 20 per tonne on to the ship. Now the cash conversion or the cash generation and conversion was significantly affected by sales mix this quarter. And I know I've had a few questions directly to me over the last sort of day or so about that. And I just want to maybe make a bit more of a communication around those legacy contracts. So we announced in the middle of 2022 with our DFS that we had signed 3 million tonnes, 3 million dry tonnes, so just over 3.3 million wet tonnes of fixed price contracts. So if you go back and look at -- we're -- the pricing is commercial in confidence. But if you go back and look at the price for Australian bauxite in the middle of 2022, and you see that's around about $43 or $44 per tonne and you then subtract the -- I guess, the value in use or quality discount that we tend to see with Metro, $7 to $8 a tonne, that's going to give you a sense of the pricing of those contracts. Now we did negotiate some flexibility into those contracts. And we've been trying to utilize that flexibility. It doesn't really make sense for us to be selling low-priced contracts when the market price is high. Obviously, if you have a quarter where the market price is very high, then we will maximize the number of cargoes we sell at the high price. Now when prices are reducing, that is a time when we will consider to sell those contracts and -- or ship those contracts. In addition, the flexibility that was built into those contracts really relied on us hitting certain expansion targets, and we basically hit those expansion targets this year. So the customer had every right to start to demand that we deliver those contracts in place. So about 38% of our volume in the last quarter was delivered under those contracts. They were largely FOB. There were 4 FOB contracts -- 4 FOB cargoes and 1 CIF cargo. So what that does also, if you look at the chart on Page 4 of the quarterly, you can see that the CIF and FOB prices, the gap has widened. So that is not reflective of freight, that is not reflective of penalties, that is not reflective of demurrage. It is reflective of the differential between the FOB and the CIF pricing in that sales mix. So the previous quarter where we did not sell, as I said, we maximized the number of tonnes we were selling at the highest price that we've seen for the last 5 years in bauxite. We were maximizing the number of cargoes we were selling at that price. That kind of gap around about 11 -- I think it was only $10 at that time, but again, around about $11 or $12 differential between CIF and FOB is about what you might see. We've got long-term freight contracts. They do not vary with the spot price, which at the moment, they are significantly in the money with respect to the spot price of freight at the moment. So that was -- that's certainly been a good decision. Now we had planned to sell in the second half of the year, about 1 million tonnes of legacy contracts and leave some for the beginning of -- for next year. The way the market is and the way the customers -- the customer is demanding, we are going to sell -- to ship all of those contracts in this current season. So there's roughly another 4 cargoes, roughly about -- sorry, there are 4 cargoes, roughly about 700,000 tonnes further to sell in the next quarter. We are also planning this year, as we had also flagged to try and extend our seasons a little to move more into the January to March quarter. We are planning to operate this year up until about the third week of January, weather permitting. And so we will still be shipping some volume in January. So like I said, look, despite that significant chunk of legacy fixed price contracts that our margin was still extremely healthy at around $16 per tonne. And so the cash generation for this year -- for this quarter allowed us to pay down about AUD 11.5 million of debt. And so that on top of about $2.5 million worth of interest. There was also a cash payment to the Queensland government under our bonding scheme. So that is an environmental bond that smaller companies are forced to pay in cash. And so that depends on our amount of disturbed land versus our rehab land and the rates, et cetera, relate to that. So that was sort of, I guess, the big impact. It's not much capital spend, just over $1 million as again, we flagged that there isn't a lot of capital during the 3 months -- the 3 quarters of full operations. So I hope that does clarify a little bit these legacy contracts. We have referenced that through the year. We do have -- we have had some flexibility of what we do that -- and we are now saying that, that will -- we will pretty much sell all of those -- or deliver on to those contracts through this year. So next year, we should be fully exposed to the market price. Now let's talk a bit about the market price. The -- obviously, last quarter, the market -- the contracts we sold on the market price were down from that very high priced quarter in the second quarter. That was -- we were coming off that peak of pricing that had occurred at the end of 2024. The -- during this quarter, the bauxite prices have traded within a fairly narrow range. They've softened slightly. The balancing factors are that effectively the alumina price or the [indiscernible] price for those customers that sell alumina into the market has come down quite significantly. So at the beginning of the quarter, it was around about RMB 3,200 per tonne, whereas sort of in the last few weeks, it's been around RMB 2,800 per tonne. So relatively significant, about a 15% drop. The good thing about the Chinese market is that it is quite elastic. We are seeing refinery capacity swing in and swing out. That does obviously affect bauxite demand. Most of those refineries that do swing though are internal or in the inner provinces of China. And so it does affect a little bit the demand for imported bauxite, but a lot of those refineries are also taking domestic bauxite. And so for the first time, and I flagged this in the report, we're seeing the total share of alumina made from domestic bauxite has reached about 75%. So you can see that, again, that trend of Chinese bauxite exiting the market is generally continuing and imported bauxite is continuing to take the share. So look, where are we with that? I mean, we've negotiated with a couple of customers already. We've got a little bit more negotiation to go. We're going to see probably a very slight softening of the contract prices for the coming quarters. So those cargoes that we're selling under the quarterly negotiated price may be $1 or $2 on average lower than where they were in the last quarter. The exports out of Guinea are definitely lower. There are restrictions both from their normal -- they've got quite an extended wet weather, monsoon season of about 4 months, and we've certainly seen an impact from that. But also additionally, about 50 million tonnes worth of capacity is currently under -- suspended in Guinea through -- by the government in terms of their interpretation of the mining leases not being -- the conditions of mining leases not being met. And of that suspension, most of those leases have been withdrawn. So there certainly is a -- the last 6 or 8 weeks of exports from Guinea have been actually barely any higher than the last couple of years. So we're certainly not seeing the sort of the continuation of the growth out of Guinea based on those issues. So -- but there is a bit of stock on the ground. The exports from Guinea in the first half were strong, and there is enough stock on the ground. So customers are really more focused less on the ability to get the bauxite and more on the fact that they are not making much money out of alumina. It's that aluminum price has continued to recover. It's still pretty strong. A lot of our customers are actually integrated aluminum producers. And so they're sort of seeing profits -- stronger profits out of their metal production. And so that does help in a great -- in quite a degree from a negotiating point of view. In the longer run, and I talk about this quite often less in the quarterly, but more in our investor and AGM presentations, and you should reference those if you can, is that the industry structure is continuing to move in favor of Metro Mining. We are continuing to drive next year our costs down and our production levels up. So we -- our strategic target that we set in the DFS -- the expansion DFS was around about USD 30 per tonne delivered into China, US per dry tonne delivered into China, and we're on track for that. We still have more optimization to go. But at the same time, the right-hand side of the cost curve, so which is dominated by Guinea, all of the activities that are happening in Guinea, whether it's royalties, whether it's taxes, whether it's shipping constraints, whether it's licenses being canceled or suspended transshipping constraints that they have on the river there, additional haul distances to access new parts of their ore bodies and lower quality material generally is driving the cost of delivery higher. And for example, at the moment, the spot price for freight from Guinea to China has gone up to about USD 30 per dry tonne equivalent, so the same -- in the same terms as price. So with Simandou Iron Ore project coming on in the back half of the year, some of you may have heard about shipping restrictions. So China has imposed significant tariffs on U.S.-owned vessels coming into China. That's going to create a 2-speed market in the freight space. That will obviously reduce the ability for freight companies to triangulate and reduce costs on their freight. All of these elements are pushing freight up, and we have long-term fixed price, fixed fuel contracts with our providers who are not U.S.-based companies. So all of these elements are, I think, placing our cost structure in a good space whilst the rest of -- certainly, the right-hand side of the cost curve is rising. So we believe that $65 to $70 is roughly where those -- some of those Guinea producers start losing money. And so I think that's going to be a relatively hard floor for pricing if we look forward to the next couple of years. So I think that's a very positive industry structure. So again, look, I think there's been maybe -- so I think some disappointing elements of the last quarter, some very positive elements from the last quarter. I think nothing here changes my view about the long-term potential for Metro in terms of our ability to produce, our ability to drive margins and our ability to create -- to drive cash flow out of this business. And indeed, management is constantly also looking at that longer term. There were a couple of things mentioned in the quarterly, particularly regarding our gaining of a project of regional significance. That may not sound like much, but that does allow us to now apply for water rights. And that -- as we've mentioned in the past, are looking at the next stage of Metro after the reserve life about what beneficiation and what we might do there. So in terms of dry screening, wet screening, that does give us more optionality. And indeed, this ability for us to work in a risk-managed way during the wet season, we've had some clarifications and amendments to our environmental authorities, working very closely with the Department of Environment, a very positive engagement with the Queensland Department there over that. And so we've now got all the clearances we need to manage in a risk -- I say, in a risk-assessed way, the -- all of the production that we might be able to push out. And I think, again, our expansion was designed to be more robust to weather, to both rain and to indeed to the sea state. I mean Ikamba has demonstrated its ability to operate in much higher swell conditions over the last 12 months, which has been -- obviously was our target, and now that's been proven. Our screening and mining processes have also had upgrades in that respect. So look, all of those things, I think, are boding well for the future and in terms of the next year or 2. And so again, I think nothing in the last quarter has changed my view on that. Okay. I guess that's -- I think -- or there was one -- maybe just one -- I think there was a bit of bit of questions over. We did sell -- we had 1 cargo during the quarter, which we -- a small -- it was small -- just over 40,000 tonnes we sold to a domestic customer. That is a cement grade customer. So the demand -- there is a use for bauxite in cement manufacturing. It's alumina and silica is valued in that space to create a pozzolanic sort of property within the concrete space. And I think that is a growing market as steel slags and blast furnace slags sort of exit the market. That could well be a growing market. So we sold a small vessel, but it was -- came out of our resource base actually. So it's not -- the grade of it meant that we were able to pull that out of our resource rather than our reserve. The price of it was on par -- the netback price of it was on par with our other sales, and we get charged a lower royalty because it's a domestic cargo. So that was -- I just think it's not a -- not necessarily massively material, but I think it was a point of interest that I've had a couple of questions on. Okay. I think, look, that's probably what I wanted to cover in my upfront comments, Peter. So very happy to take questions.

Thanks, Simon. And you're pretty comprehensive to covering that. It's good for us shareholders to listen to your interpretation and get some color around that. First question we have here is, would you be able to provide some clarity on CIF pricing shown in the quarterly results? Does this pricing reflect purely the non-legacy contract prices achieved i.e., current market price received is in the low $60?

Not quite. The -- we have -- we have CIF contracts and FOB. CIF is cost including freight. And we had 1 legacy cargo shipped on a CIF basis during the quarter. So one, there is some impact in that CIF price for that cargo, but the remainder of the cargoes in that CIF price were at the market price.

Okay. Following on, with the revised production figure for the year reduced, will this mean that the KPI of the bonus performance scheme continue to be in play if the revised production figure is reached?

As far -- look, as far as I'm aware, the original guidance is -- remains the KPI that sits for basically management and the group, the senior teams within the organization. We still are driving very hard to try and meet that bottom end of guidance. So 6.5 still sits within the range of the revised guidance. It's prudent for us to review where that is. Obviously, there's still -- we still have weather potential weather impacts that are coming down -- that could come down the track on us. But we -- as I said, we delivered almost 2.3 million WMT in the last quarter. We still think that 2.4 million WMT target that we have a credible opportunity. To me in fact, 2.5 million WMT -- we have still -- if things go really well and the weather is kind to us, we still have an opportunity to deliver 2.5 million WMT that's the top end of guidance at the revised guidance at 6.6 million WMT. But it was prudent of us to also reflect on, I guess, the year-to-date output, which was roughly about 8% below what we had initially planned. And also, we had a 4-day outage at the beginning of October. So subsequent to the end of the quarter, which we had to reflect on as well. So given that reflection, we had a long discussion with the Board over the different scenarios and therefore, we felt it prudent to adjust the guidance. But from a management perspective, our KPIs subject to the discretion of the Board still remain on the original guidance.

Next question, what are the risks that the docking of the floating terminal in a down period in Q1, 2026 will extend beyond the 1st of April '26 and hamper meeting guidance of '26?

Yes, that's a good question. Maybe just -- I'll take a step back. Look, obviously, it Ikamba critical to us. It's performing really well this year. We still continue to tweak it to make sure that it's absolutely suited to the different seasons that we go through. We go from, obviously, very wet material through to very dry material through the year. So it's got to cope with some very differing ore grades and ore qualities and all physicals, I suppose. So we do condition monitoring as most do, and we've picked up some -- the start of some metal frac -- very fine metal fragments in the lubricant on the slew bearing of one of the cranes. So we had expected that, that was going to last at least through one more season. So we had planned to take Ikamba offshore to do a dry docking in the January to March period of [ 2027 ]. So out of an abundance of caution, we brought that forward. These vessels have to do that every 5 years in any case. So we're going to bring that forward. We'll run Ikamba until our target for this year where the permitting is to keep running until around the third week of January. Once that production season has finished, we will tow -- we're under negotiation at the moment with different shipyards, where we will tow Ikamba to a shipyard and we will undergo the maintenance of that slew bearing. We need external -- large external cranes to be able to lift off the top of the crane. At the same time, we will do other maintenance in parallel. We will look at the schedule of that to make sure that we minimize any of the other maintenance that we do to try and bring -- keep the schedule there. So we're roughly planning about a 10-week end-to-end maintenance period. That should have us back at the beginning of April. We still have the other transshipping, the floating crane. And so our plan would be to recommence in March with the floating crane and with the crews that we have on board. That's obviously -- we've got experience with that in the past. And so that is under discussion with our contractor. And so whilst Ikamba might -- look, there's always a risk, whether it's towage risk or schedule risk in a shipyard. We believe we've got the right kind of schedule, and we've been through that with the shipyards. And so we think that's a relatively central estimate. But in the meantime, we still have another floating -- we have another transhipper there to be able to do -- to service the vessels. So we need to make that decision roughly a couple of weeks in advance. So by the end of February, we'll know broadly where that's currently sort of sitting and so we'll be able to make the decision on the restart and so on, but we do have that contingency in place.

Simon, there was a lot on the Ikamba. Is the operation Ikamba meeting expectations, exceeding expectations? Perhaps you can comment on how that's -- the impact of Ikamba on the operation?

Yes. Look, Ikamba is performing to our expectation. I mean it's not a new vessel. We made a deliberate decision to -- we could have just gone with a second floating crane, that would have really topped us out at about 7 million tonnes capacity. Ikamba provides a huge amount of upside to our production capability. It was an 11- or 12-year-old vessel or whatever it was when we -- when it arrived at Metro. So there are certain protocols that we have to keep to in the slew. We were purposely monitoring the slew bearing, and we're slowly also going through upgrades on the vessel. Those of you who own sort of yachts or boats or ships or whatever know that marine vessels require a lot of attention, and we're giving it that attention. So in terms of its performance, we -- it's almost the sorts of throughputs that -- obviously, there were 2 vessels, I think we mentioned this before, 2 sister vessels built at the same time. What we have seen with her sister vessel, what we've seen with Ikamba, the vessel is actually -- if we can feed it with the bauxite, the upside Ikamba's capacity is really up to that 9 million or 10 million tonnes by itself, right? So that's the effective capacity for Ikamba. So -- actually, the most important part is actually delivering the ore to it. And so we've had a lot of focus this year on our tug and barge cycle to evaluate larger barges. That's taking us a little bit longer than we had hoped with going through all of the kind of assessment processes with the Regional Harbor master, Maritime Safety Queensland, the pilots, et cetera, to make sure that we've got a safe operation. But those bigger barges will also allow us to extract more capacity out of Ikamba because it was effectively designed for 10,000 to 15,000 tonne barges and our barges are maximum of around 7,000 tonnes. So the bigger barges we can get, the more capacity we get out of it. So look, and I think the weather resilience I've touched on, we were -- you can look at that in other locations, but we had to prove it in our own location. Every location has a different swell profile in terms of the strength of the swell, the period of the swell, the heights of the waves. So we have proven that this year on several occasions about the ability for Ikamba to continue to safely operate in much more difficult conditions. So again, I would say the performance of Ikamba has been proven. So look, I'm extremely pleased with it. And I think the team -- the marine team has done an excellent job in -- from nowhere a couple of years ago, we now have a very competent and capable marine department.

Thanks, Simon. Our next question. Is there any recourse from Metro to the supplier to refurbish the barge loader that subsequently failed?

Look, we're continuing to do an investigation as to the root cause of this. We're going to go right the way back to obviously scoping, quality assurance, et cetera, the handover, et cetera, all of those sort of things. So look, we are going through that investigation now. Look, all contracts have some recourse in them. So we will -- this contract is no different. But as yet, we have not completed that investigation. So as soon as I -- as soon as we know what that looks like, we will take the appropriate action.

Okay. The macro environment, Simon, bauxite and alumina, in the current new environment of tariffs from the U.S. with Metro's product being shifting to China, how do you see the tariff environment affecting the outlook going forward for the bauxite and aluminum pricing?

Yes, it's good -- that's a very good question. So look, I think that the tariff environment between China and the U.S. is an extremely high-profile issue with both of the governments there. They know how important each other is to each other in terms of the global trade. There's increasing evidence in the U.S. that the tariffs are causing harm to the U.S. economy in terms of the costs and inflation that's coming through in the U.S. By the same token, the Chinese industry is very much exposed generally to that global trade in the U.S. is part of that. Now what we've seen so far is, I guess, both sides walking to the cliff edge and then stepping back in terms of their behaviors and the -- we do understand there are continuing and intense discussions going on between the 2 groups. My recent trip to China, I mean, the Chinese economy itself is now enormous. And so its ability to domestically drive consumption across the board is also enormous. And I don't know -- I've forgotten the stat actually, Peter, but I mean, people can look it up. But the last 12 months, there has been some phenomenal -- I think it's about -- if you add up all of the solar panels that have been put in by the Western world over the last 5 years, China has installed those over the last 12 months, right? So similarly for wind turbines, I was on a 5-hour journey on a train journey on my last trip. And the almost -- once you got out of the city, almost every kilometer you had row upon row of wind turbines and solar panels that you could see from the window of the train. So there's clearly been an enormous push internally. And both of those things are aluminum intensive. And of course, the grids, the poles and wires required to take those electrons from those renewable power generations to a transformer are also highly aluminum intensive. So what we've seen, and I saw an analysis from UBS saying that the aluminum demand out of the China's industry this year has continued to grow. So over the last 6 to 9 months, so the tariffs, I think, came in, in February or something like that. Even with those, the demand for aluminum in China has continued to increase. So I think that, that -- and this is why the aluminum price is continuing to be relatively strong. You're still seeing, I think, a robust demand for the metal. And as long as there is robust demand for the metal, then I think that gives space for the alumina refining. And there's obviously a bit of a shakeout going on in alumina refining, which I referred to earlier. But the shakeout in the right direction for Metro and for imported bauxite, which is inland refineries are tending to close and that is being picked up by coastal refineries that are being dedicated to imported bauxite. And many of those new refineries being built have the capability of using high-temperature refining technology, which is the absolutely ideal. We have -- some of our product does go into low temper -- the absolutely ideal way to treat Australian and Metro bauxite is through a high-temperature refining capability. So that is what's being rolled out across the board, both in Guangxi in the middle of China -- the coast of China up around Shandong and Hebei. And also indeed, we're seeing in Mongolia and around the top end of China as well. So there's new alumina refining capacity being built along the coast there to take imported bauxite. So clearly, there's a bit of a shakeup here oversupply and undersupply occurring, that alumina price, but there will be a sustainable outcome emerging, I think, through next year. So...

So Asian demand remains very strong, consistently strong growth still there, notwithstanding the U.S...

No, that's right. I think we're going to see about 100 million tonnes of production of alumina. And as -- that will result in -- as we see that share of imported continuing to grow. At the moment, it's about 75% imported. That's going to continue to grow 80%, 85%, et cetera, over the next few years. We'll see then is a continued demand for imported bauxite I think -- as I said, I think the big growth out of Guinea has really sort of stopped. I think if you're an incumbent supplier there, you will probably sort of survive. I don't think people are going to be investing a lot more money in Guinea bauxite after what the government has done. I mean clearly, the Guinea government now has Simandou coming on. That's a big cash cow for them in terms of taxes, royalties, their small share of that project. And so that allows them to be a bit tougher on, I think, some of the poor behavior that's been occurring in the Guinea bauxite space. And that's exactly what we're seeing at the moment.

All right. Well, Simon we've exhausted our questions from the audience today. Thanks for your comprehensive coverage. I'll reiterate to our audience, if anybody has some questions for Simon, please send them through to me at [email protected], and I'll make sure that Simon gets them and he'll be keen to respond. So I thank everybody for their attendance today. And Simon any message to leave at the end of this webinar?

No, no. I think I'll just go back to something I said earlier. I mean, look, I know markets are pretty short term these days. The industry structure is continuing to drive in the right direction for us. Our expansion now, we're seeing the rates come through. Our costs are still -- there's a little bit of work to do, but I'm still -- we're on track to meet our strategic target for costs next year, as I mentioned. So nothing over the last 3 months or indeed what I'm seeing over the next 3 months sort of really gives me any concern over the ability for this project to be generating significant cash moving forward. So from my point of view, it's -- we're continuing to try to optimize, continuing to try and drive productivity, work hard with our customers in terms of getting the right kind of contracts and deal outcomes. So all of those things are trending in the right direction. So nothing I've seen in the last 3 months or indeed the current quarter gives me really any concern about the ability for this company to perform. And then for the valuation, once we've show that consistency for the valuation to reflect the NPV of the project.

Thank you, Simon. Thanks to our audience. And this will be -- this is being recorded. We'll have a recorded version ready to send to everybody that attended and registered today, and we'll make it available for -- on the website, too, I believe. So, thank you for your time this morning.

Great Okay. Thanks, Peter, and thanks, everyone, for your time.

Thank you.