MMG Limited (1208) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the MMG Limited Annual Results Webcast. [Operator Instructions] I would now like to hand the conference over to Mr. Jarod Esam, Head of Investor Relations. Please go ahead.

Good morning, and welcome to MMG's 2023 Annual Results Briefing. Presenting today are MMG Interim CEO, Li Liangang; and CFO, Ross Carroll, together with other ExCo members. The slides for today's presentation are being webcast in both English and Chinese. They can be accessed from the Investor and Media section of the MMG website. I'll shortly hand over to Liangang, who will present an overview of our performance throughout 2023, then Ross will provide more detail on our financial results and related analysis. To conclude the presentation, Liangang will share insights on our strategy and the outlook for 2024 and beyond. At the end of today's webcast, we will open the line for questions. For those wishing to ask questions, please ensure you're accessing this presentation via the teleconference details that were in -- clearly in the invitation of today's session and not just the webcast. I will now pass over to Liangang.

Thank you, Jarod. Good morning to everyone, and welcome to MMG's 2023 Annual Results Briefing. Firstly, I'd like to acknowledge the tragedies of 2 Barminco contractors, Mr. Trevor Davis; and Mr. Dylan Langridge at Dugald River in February 2023. The loss has had a profound impact on us all. We remain committed to eliminating interests and fatalities across MMG. Nothing is more important than ensuring that our people can return home safely to their loved ones. Let's now turn to our safety performance for 2023. Our focus remains on reducing the significant events with energy exchange. The [ LTIF ] frequency rose from 0.94 per million hours worked in 2022 to 1.14 in 2023. Although this increase is disappointing, there have been a pleasing downward trend over the last 5 years. MMG's total recordable injury frequency was 1.97 per million hours worked for the full year of 2023, which is higher than the full year of 2022 results of 1.25. However, we have observed better execution of safety controls across all sites in the fourth quarter of 2023 with a quarterly TRIF of 1.13. The safety performance reminds us that there is still significant room for improvement, particularly in reducing significant potential incidents. We have seen an improvement in our reporting quarter, which allows us to learn from the incidents and implement actions that will prevent reoccurrence. Now let's move on to some of the highlights of our production and financial results. Overall, our sites have delivered strong results with production and cost performance in line with/or outperforming our updated guidance. In 2023, we produced more than 347,000 tonnes of copper and 203,000 tonnes of zinc. Copper production in 2023 was 14% higher than year 2022, driven by uninterrupted operations at Las Bambas. Revenue increased by 34% to more than USD 4.3 billion for the period, primarily driven by higher sales volumes from Las Bambas, which more than offset the impact of lower copper and zinc prices. In 2023, MMG recorded a net profit after tax of around USD 122 million. MMG achieved an increase in net cash flow from operations, totaling around USD 1.85 billion, representing growth of 122% compared to 2022. Driven by strong cash flows, the company reduced overall net debt levels by around USD 788 million, reducing the gearing ratio by 5% to 50% at the end of 2023. We will discuss our key development [ products ] and growth opportunities later in more detail, but we have made steady progress on the Kinsevere expansion product throughout 2023 and have started early works at Chalcobamba. I will now provide an update on our organizational changes. As you may be aware, Mr. Ross Carroll will retire from his role, as the CFO of MMG with effect from 6th of March 2024 with a transition period until 1st of July 2024. I would like to take this opportunity to thank Ross for his significant contributions to the company over more than 8 years. On behalf of the entire R&D team, I wish Ross much success in his new chapter. Thank you, Ross. Mr. Song Qian has been appointed as the Executive General Manager of Finance and brings to the business significant executive experience within China Minmetals Corporation. Welcome, Song. Mr. Nan Wang, former Executive General Manager, Australia and Africa has commenced its accountabilities in a newly created role of Executive General Manager, Operations to integrate Group operational accountability and excellence. Mr. Jianxian Wei, Executive General Manager at Americas will remain on [ ExCo ], which reflects the scale and importance of MMG's presence in the region. Mr. Troy Hey, the Executive General Manager, Corporation -- Corporate Relations has taken accountability for legal and company secretary alongside his existing accountabilities. I believe this trend is simplify and focus accountabilities amongst MMG leadership. I am confident that the new structure will enable our leadership to drive successful outcomes, as we work towards our vision of creating a leading international company for a low carbon future. I will now continue with an update on community engagement at Las Bambas. We have made a number of important steps this year, as we look to continue to build partnerships with our host communities. We implemented the [indiscernible] product to ensure that the communities we operate in will benefit from operational success of Las Bambas. At the end of 2023, we reached definitive agreements with Ferrobamba community or outstanding land issues. Our efforts to enhance partnerships with communities and government support has helped ensure stable and consistent logistics for concentrate transportation since March 2023. Discussions with the Huancuire community have advanced with the signing of 5 contracts with community companies, and these companies have now commenced early works at Chalcobamba. The Las Bambas team is working with the Huancuire community towards an enduring agreement for the development of Chalcobamba deposit. Let's now turn to the progress of the Kinsevere expansion product. The product remains on track and has achieved good progress. The cobalt plant was commissioned and achieved first production of cobalt hydroxide in the fourth quarter of 2023. The construction of the sulphide processing system continued [ with ] the majority of the civil works complete. Mechanical and structural installation has also commenced. Moving forward, the focus will be on the wrap-up of the cobalt plant and completing the installation of the key work packages. The product will extend the mine life to at least 2035 and bring annual production to approximately 80,000 tonnes of copper cathode and 4,000 tonnes to 6,000 tonnes of cobalt in cobalt hydroxide. We expect the first copper cathode from sulphide ore in the second half of 2024 and a full ramp-up in 2025. The combination of higher copper production and cobalt by-product credits is expected to significantly reduce the C1 costs. Now let me proceed with an overview of the acquisition of Khoemacau mine. As announced in November 2023, MMG entered into a share purchase agreement to acquire the Khoemacau mine in Botswana. Khoemacau is a scarce high-grade, low-cost producing copper asset in the world-class mining jurisdiction of Botswana. The expansion product will deliver production of around 130,000 tonnes of copper per annum. The expansion is a cost-efficient pathway to achieve production at scale with a low capital intensity. Khoemacau is a long-life asset with a greater than 20-year mine life based on the [ Zone 5 Group ] deposit alone, with potential for further increase in scale and life from other non-resources. In addition to the mine and existing resources, we are also acquiring dominant 4,040 square kilometers land holding in the emerging and highly prospective Kalahari Copper belt. I will now hand over to Ross to take you through our 2022 financial results in detail.

Thank you, Liangang, and welcome, everyone. In 2023, our revenue increased by 34% to over USD 4.3 billion. This was primarily driven by higher sales volumes from Las Bambas, which more than offset the impact of lower copper and zinc prices. The company's total EBITDA of USD 1.46 billion was 5% lower than 2022. This was due to a decline -- this decline was due to lower prices for copper and zinc, lower sales at Kinsevere and Dugald River and higher consumption of third-party ores at Kinsevere to offset reduced oxide ore mined during the transition to the mining of sulphide ores. Higher sales volumes of at Las Bambas contributed positively, but were partly offset by higher costs, which included an inventory reduction expense of nearly [ $800 million ], higher transport costs of nearly [ $60 million ] and [ higher cost ] generally relating to higher mine activity, as a result of 2023 being a year in which we operated all year as distinct to 2022. In 2023, MMG recorded a net profit after tax of USD 122.1 million, including a profit of $9 million attributable to equity holders of the company. MMG achieved net cash flow from operations of USD 1.85 billion, representing growth of 122% when compared to 2022. This performance is primarily attributable to the cash generated from the sell-down of the copper concentrate inventory at Las Bambas, which compared to a buildup in 2022. Lower tax payments for Las Bambas and Kinsevere also were affected. Driven by strong cash flows, the company reduced its overall net debt levels by USD 783.6 million, lowering the overall gearing ratio by 5% to 50% at the end of 2023. We'll now take a closer look at the drivers of the EBITDA movement. The waterfall chart shows the key variables that drove the movements in EBITDA when compared to 2022. Lower copper and zinc prices provided a negative impact of just over USD 200 million. Higher sales volumes had a favorable contribution of almost $1.3 billion. Total payable copper and products sold was almost [ 420,000 ] tonnes, representing a 54% increase compared to 2022, primarily driven by uninterrupted operations and transport at Las Bambas since March 2023. We had an unfavorable impact of operating expenses around USD 1.13 billion. Total operating expenses increased by 67% in 2023, primarily driven by the costs associated with the drawdown of the LB copper concentrate stockpiles compared to buildup in 2022. Additionally, operating expenses were impacted by higher cost at Las Bambas in line with the higher material mined and milled volumes, and an increase in copper concentrate volumes transported. At Kinsevere, we consumed more third-party ores to offset the reduced oxide ore mined. We'll now move on to the debt portfolio. The chart on the left-hand side sets out our updated term debt repayment profile. Although, we had some significant debt repayments [ due ] in the line from our major shareholders over the next 3 years, these will more than likely be reviewed with the major shareholder in order to manage the company's cash position. Repayments due on the Las Bambas project facility will reduce in 2024 before further reducing in 2025 and onwards. Turning to the chart on the right-hand side, it demonstrates the continuous reduction in overall debt levels and gearing ratios over the last 5 years, as a result of the company's efforts to strengthen our balance sheet. We have now positioned ourselves positively for future growth. Also importantly, we maintain strong relationships with our funding partners from China and the rest of the world. Our partners continue to be very supportive and flexible in their approach to funding MMG and to helping us grow. I'll now move on to our capital expenditure outlook. Total capital expenditure for 2023 was USD 790 million, in line with our guidance, including $269 million spent on the Kinsevere expansion project, USD 333 million spend at Las Bambas and capitalized mining costs of around $160 million. Total capital expenditure in 2024 is expected to be between USD 800 million and USD 900 million. Break this down, USD 400 million to USD 450 million is attributable to Las Bambas, including the expansion of the Las Bambas tailings dam facility, modifications for the Ferrobamba pit infrastructure and the development of Chalcobamba. Capital expenditure for the Kinsevere expansion project is expected to be in the range of USD 250 million to USD 300 million. Should MMG successfully complete the acquisition of the Khoemacau asset, our capital expenditure guidance will obviously change. The chart on the right demonstrates that our projects are extremely competitive relative to recent and future copper projects globally and brownfield projects, which are Chalcobamba, and the Khoemacau expansion will deliver incremental production with a capital intensity of under USD 10,000 per tonne of annual copper equivalent production. While the average of global copper development projects is above USD 15,000 per tonne of annual production. Our brownfield expansions are an important part of our ambition to grow and represented cost-efficient way to increase production. Now moving to the sensitivity analysis. The table on the slide details the sensitivity of the Group's earnings, the movements in commodity prices and exchange rates. The copper price has the biggest sensitivity with a $0.10 per pound movement in the price, having an impact of around $71 million on an EBIT basis. Movements in the zinc price, the Australian dollar and the Peruvian soles also have a relatively material impact on an EBIT basis. I will now run through the performance of our 4 operating sites, starting with Las Bambas. Las Bambas produced 302,000 tonnes of copper since 2023, which was 19% higher than 2022, largely due to the uninterrupted operations since March 2023 and record high annual milled throughput, which was a 20% increase when compared to 2022. Copper sales volumes were 69% higher compared to 2022 due to the higher copper production and the continued availability of the heavy haul road since March. Copper concentrate sales of 1.1 million tonnes marks the second highest level since the commissioning of the mine. Revenue of USD 3.4 billion was 64% higher than 2022, due to the higher sales volumes for copper, gold, silver and moly, and higher sales prices for moly. This was partly offset by lower copper prices. The C1 cost of USD 1.60 per pound for 2023 were below our guidance range of [ $1.65 to $1.75 ] a pound, although they were higher than the 2022 C1 costs of USD 1.53 per pound. The higher unit costs in 2023 were attributable to higher production costs due to significantly higher levels of activity and the absence of care and maintenance cost exclusions from the period of the shutdown in 2022, partly offset by increased copper production and higher by-product credits from moly, gold and silver. Now moving to Kinsevere. Kinsevere produced over 44,000 tonnes of copper cathode, which is a decrease of 11% compared to 2022. The lower cathode production was primarily attributed to a decrease in ore milled throughput caused by unstable power supply from the national grid along with lower feed grades. Kinsevere revenue decreased by 16% to USD 355 million compared to 2022 -- compared -- due to lower copper sales volumes in line with lower production and lower copper prices. Financially, Kinsevere has gone through a tough time, while we await the completion of the KEP project. C1 cost for 2023 were USD 3.29 a pound higher than the [ USD 2.55 ] a pound in 2022, driven by lower production and higher processing costs caused by the high consumption of third-party ores and sulfuric acid. As Liangang mentioned, KEP is on track, and we achieved first production of cobalt. We've also commenced mining of Sokoroshe II, a satellite deposit with ore being transported to Kinsevere for processing. This has reduced our reliance on third-party ore in 2024. I will now move on to our operations in Australia at Dugald River and Rosebery. Dugald River produced 152,000 tonnes of zinc in zinc concentrate in 2023, which was 12% lower than 2022. Its operations were suspended for 34 days after the fatal incident at the mine in February. Zinc metal production was also impacted by lower ore feed grades associated with the mining zinc -- mining sequence, partially offset by record high zinc recovery rates of 90% compared to 89.3% in 2022, driven by ongoing plant optimization. Revenue of $331 million was a decrease of $153 million due to lower zinc prices, a 9% drop in zinc sales volumes and an 8% drop in lead sales volumes in line with the lower production. These factors were partly offset by higher silver prices. Dugald River's zinc C1 costs were [ USD 0.93 ] a pound in 2023, higher than the USD 0.84 a pound recorded in 2022, but outperforming the revised guidance of USD 1.05 per pound to USD 1.20 per pound. The higher C1 costs were largely attributable to lower production volumes. And finally to Rosebery. Rosebery produced 52,000 tonnes of zinc in zinc concentrate and 19,000 tonnes of lead in lead concentrate in 2023. This represented a 1% and 6% increase, respectively, compared to 2022. Ore mined was 4% higher compared to 2022, primarily due to the mining sequence and improved workforce availability, partially offset by the lost production in January as a result of the bushfire incident. Rosebery finished the year strongly with its highest quarterly production achieved in the fourth quarter of 2023. Revenue decreased by 8% to USD 240 million due to lower prices for zinc, lead and copper. This was partially offset by higher zinc sales volumes, higher precious metal prices and higher precious metal sales volumes. Rosebery's C1 costs were USD 0.26 per pound in 2023, in line with 2022, as higher production expenses were offset by higher by-product credits. I'll now hand you back to Liangang to finish with our strategy and outlook. Thank you.

Yes. Thanks, Ross. Let me start with our strategy. Our overall strategy remains unchanged. And this year, we took some important steps for realizing our vision to create a leading international mining company providing the material is essential for the transition to a low-carbon future. Our strategic pathways guide our direction to deliver our strategy. We are focused on maximizing value and competitiveness of our existing assets and the Khoemacau Mine post completion. We hope to grow the core around the existing regions and commodities, specifically targeting advanced stage copper, zinc and cobalt assets within our established hubs. We plan to step [ out ] into new regions and will consider diversifying into other future-facing commodities, such as nickel and lithium. All our actions are underpinned by a strong commitment to responsible governance and sustainability. Now, let me move on to our overview of [ assets base ] and our guidance for 2024. Starting with Las Bambas, we expect copper production for 2024 is expected to be in the range of 280,000 tonnes and 320,000 tonnes. This is largely in line with 2023, but is subject to the timing of the development of Chalcobamba. We anticipate a slight increase in C1 costs to between USD 1.60 per pound and USD 1.80 per pound, primarily due to higher mining and processing volumes and lower by-product credits with lower moly price assumptions. Moving on to Kinsevere, our copper cathode production is estimated to be between 39,000 tonnes and 44,000 tonnes. This reflects the natural depletion of bauxite ore, as we transition to sulphide ore mining, partially offset by the increased supply from Sokoroshe II. We expect an important improvement in C1 costs ranging from USD 2.80 per pound to USD 3.15 per pound, thanks to cobalt by-product credits and a reduced reliance on high-cost third-party ore. For Dugald River, we expect the mines production to be in the range of 175,000 tonnes and 190,000 tonnes of zinc in zinc concentrate, reflecting performance supported by stable operations and continuous operational improvement. We also predict a decrease in C1 costs to USD $0.70 per pound to USD $0.85 per pound, reflecting both increased production and lower anticipated zinc treatment charges. At Rosebery, zinc production is expected to be between -- in the range of 50,000 tonnes to 60,000 tonnes of zinc in zinc concentrate, while zinc equivalent production to range from 115,000 tonnes to 130,000 tonnes. We are optimistic about our improvement in C1 costs to be in the range of USD 0.10 to USD 0.25 per pound, driven by higher anticipated production levels and lower treatment charges. I will now continue to discuss our growth opportunities. In the near term, we anticipate an increase of between 50,000 tonnes and 65,000 tonnes per annum of copper equivalent production, as a result of the Khoemacau acquisition. As mentioned earlier, the Kinsevere Expansion product will bring the annual production of Kinsevere to approximately 80,000 tonnes of copper cathode and 4,000 tonnes to 6,000 tonnes of cobalt in cobalt hydroxide. The Chalcobamba development will return Las Bambas to be 350,000 tonnes to 400,000 tonnes per annum copper producer. Looking ahead to the midterm, the expansion of Khoemacau is projected to increase its copper equipment production to a range of 145,000 tonnes to 155,000 tonnes per annum. These growth opportunities will increase and expect with a -- will increase our exposure to copper, a metal that is vital to global decarbonization, as we strive to become a top 10 listed copper producer. In the meantime, we are actively exploring further growth options at all our existing sites and the [indiscernible] product to enhance our growth pipeline. We also remain open to the possibility of growth through further acquisitions. In closing, on behalf of the MMG management team, I want to express my deepest gratitude to our shareholders, host communities, contractors and the dedicated MMG employees. Your support is the foundation of our success. Thank you for your time today. I will now hand back to the moderator, who will open the line to questions.

[Operator Instructions] The first question comes from Jimmy Feng with Citi.

Hi, Mr. Li, and Ross, and Jarod for sharing, and thanks Ross for his always helpful explanation. And I have a few questions. Firstly, is regarding the Chalcobamba. I want to check for the Las Bambas guidance in 2024. In the base case, how many volume contribution from Chalcobamba is expected in 2024? And also, after the ramp-up of Chalcobamba, what's the C1 cost expectation for Las Bambas project overall? This is my first question.

Yes. Thanks, Jimmy, and thanks for the kind words. I think with Chalcobamba, it depends on the exact timing, but [ you're ] looking at a contribution of around about 50,000 tonnes of copper metal if we are able to do it -- develop it in accordance with our expected time line. Now the C1 cost is obviously given guidance for this year, and that's based on the 320,000 tonne production rate. But in 2025, and assuming, we get access to Chalcobamba shortly, we'd be looking at production of around about 375,000 tonnes to 400,000 tonnes. And in that case, the C1 cost would reduce to around about $1.30 a tonne to $1.40 a tonne. Obviously, we'll give more precise guidance on that early next year, but to be in that sort of range.

That's very clear. And my second question is regarding for the Kinsevere project. I think the Kinsevere project also a record net loss in the second half because of the transition. And so, if the copper production from [ surface ] are expected in the second half of this year. So in this case, do you expect this project record profit instead of loss starting from the second half of this year or may be starting from next year? So what's the expectation of this project profit visibility?

Yes. We currently expect the KEP project to be finished in around October, so in the -- the end of the -- start of the fourth quarter. And I think for the remainder of 2024, we'd be ramping the project up. So I think at best for this year, Kinsevere will be breakeven or perhaps a small loss, and it's only really next year that we'd see the full benefits of the project.

Got it. Very helpful. And my last question -- my last question is regarding for the tax expense, [ sorry, for the ] CapEx. After the ramp-up of the Chalcobamba, what's the CapEx expectation for Las Bambas? And also, what's the CapEx expectation, the annual CapEx expectation for the Kinsevere project after the finish of the KEP project?

Yes, yes. Yes. Well, Las Bambas, I think we would have explained this previously is very capital intensive, and there's a lot of ongoing capital commitment. So -- on an average or a general year, you'd still be looking at USD 400 million to USD 500 million of sustaining CapEx. For example, we spent about $80 million to $100 million a year just on the tailings dam alone. And then with Kinsevere, once the project is finished, and it depends on what's going on, which would be sort of anywhere between probably $20 million and $50 million of ongoing sustaining CapEx.

Your next question comes from Chris Shiu with Balyasny Asset Management.

I've got a couple of questions. So the first question is regarding financing expenses for this year. For 2024, what are we expecting?

Sorry, Chris, do you mean in terms of interest rates or in...

Yes, the total -- total expense, yes, for the year.

[ I must say that ], I'm sorry. I can't answer that number off the top of my head, would be sort of up around $800 million. But yes, but we can get back to you with some more precise numbers. Yes.

Sure, sure, sure. Got it. Okay. Yes. And the second question is, so regarding the CapEx, as well as the debt profile, how will those change with the potential approval of the Khoemacau acquisition?

Yes. Well, obviously, I guess, with Khoemacau, in round figures, you're talking about a $2 billion acquisition. Now we're sort of in advanced discussions we're bringing a partner in. And it looks like at this stage, we'll probably keep a 55% interest that will consolidate the asset into the balance sheet. Initially, it will be all debt funded. But then we'll be looking at different ways over the rest of the year, as to how we insert some equity into that. So -- but initially, we're going to have an extra $2 billion of consolidated debt, albeit that 45% of that would be outside equity interest. And then with the CapEx, it won't be overly significant until we start the expansion project, but that will be in sort of 2027. And for the expansion project, we'd be looking at about $700 million spent over 2 years. We haven't got the keys to it yet. So until we do that, it's hard for us to give precise numbers.

Got it. How about the sustaining CapEx for Khoemacau's current operations?

Yes. It's not really appropriate for us to talk about someone else's business at this stage, Chris. And once [ Nan ] gets control of it, we'll obviously, at our next quarterly briefing up, give an update on what the effects will be.

Well, thank you very much for your help over all the years and all the best for your future endeavors.

Your next question comes from Joy Zhang with Goldman Sachs.

I have 2 questions. First one is for the Chalcobamba expansion. I want to ask once we get approval, how many months do we need for the construction?

Yes. Joy, this is [ Nan ] here. Yes. I just want to give you a brief update. Right now, we've already started early work. Like Liangang mentioned, there's 5 community companies kicked off some of the road construction and then dewatering dams construction and things like that, it's early preparation. For the bulk of market, we'll ramp up from here until end of Q3. So gradually, as you know, we have to open up the pit and then through the early pre-stripping, obviously, at the same time, we'll work closely with the local community to make sure sort of ramp-up is going smoothly. But the overall timing is the ramp-up is from now until end of Q3.

Okay. So the construction of the [indiscernible] already has started right?

Yes. Like we mentioned, we started early work, like we have to build a road and then open up the mining front and then do the drainage and some of the dewatering dams. So those work that's got to be done before the proper mining to start. Yes.

So lastly -- well, sure. Go ahead.

[indiscernible] is just to mention that we also are working really closely [ behind the Peruvian government ] completing that what I would call assistance development agreement. And so, the [ feasibilities ] have been well planned, and then gave you a time frame, that's [ conditional us ] getting an agreement with the community to really start the development. So at the moment, the early works are well -- going well, 5 community companies alongside us and a really good and constructive dialogue happening on a daily and weekly basis. And we're really hopeful that we'll get to that agreement very soon.

And also, my second question is regarding the Rosebery. I saw on the presentation that the mine is actually working on the life expansion. So I want to check, so if the annual production rate will be relatively stable for the next 3 years to 4 years. Can I say that?

Yes. Joy, it's Nan again. Yes, at this stage, based on the current mine planning, we're still looking at pretty stable for the next couple of years based on the current resource base. So from the life extension point of view, we'll continue committed to do exploration and then working on our tailings expansion extension. So if we look at the next couple of years, it should be pretty stable.

Okay. Also, I want to ask probably another question regarding the Peru's operational environment. So with the temporary President was coming up or elected, do you see a very big change or improvement of the operational environment comparing to the last president over the past 1 year? And do you expect this status to continue in probably this year also before the next election.

You're talking about Peru. Was that right, Joy?

Yes, Peru. Yes, yes, yes, Peru, yes.

Yes. I think we've had a very cooperative relationship with the interim government in Peru and for about 2 years now, and you've seen that through a very stable 2023 in terms of road access and operational continuity. And we've seen a really strong attitude from the Peru government to encourage business growth investments and continued investment in the mining sector. So it's been a very good period in terms of that. There are still many issues facing the government in terms of low public support and especially around artisanal and small-scale mining and other areas, and the government is working through those with the industry. But we've seen a relatively stable period, but one that hasn't been great for economic growth in Peru. I think you'll see, as we approach new elections, a real look forward from the Peru government to rebuild its growth agenda to look at economic contribution and GDP growth. And really, that means creating conditions for a mining industry to start reinvesting in new projects and in growth. And we, I think, are very supportive of the government's efforts to do that and appreciate it, especially in the assistance, in keeping Las Bambas operating.

[Operator Instructions] Thank you. There are no further questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.