Energy Fuels - Q2 2023

Transcript

Operator (participant)

Good afternoon, and welcome to the Energy Fuels second quarter 2023 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press Star two. I will now hand the call over to Mark Chalmers, CEO of Energy Fuels. You may begin your conference.

Mark Chalmers (CEO)

Thank you very much for the introduction. Good morning or afternoon, depending on where you're joining from. I want to thank everyone for joining the Energy Fuels Q2 2023 conference call and webcast today. We are always excited to discuss our results and our significant accomplishments that we continue to make. For those that cannot join the call today, there will be replays of this presentation available for two weeks on our website, starting later today or tomorrow. Every quarter, I say we're making remarkable progress on many fronts, and this quarter is no different. Energy Fuels is likely one of the biggest success stories on decarbonization and electrification, while we also emerge as a clear leader in U.S. critical mineral production. This is at a time when it has never been more important. We are a unique investment.

No other company I know has the ability to advance uranium, vanadium, and rare earth production capabilities, while at the same time advancing our medical isotope aspirations. We're doing this while we continue to maintain a very strong balance sheet with zero debt. Today, I'll elaborate on these accomplishments for the quarter and provide details of what I think the rest of the year will look like. I also want to remind everyone that you are controlling your slides to the presentation from your own device, and I'll try to remember to tell you when to say next slide. There will be time for questions at the end of the presentation, and during the question and answer session, Dave Frydenlund, our Executive Vice President, Chief Legal Officer, and Tom Brock, our CFO, will be available to answer any questions I cannot answer. Let's jump into the presentation.

This first slide, showing a picture of the remarkable White Mesa Mill, which is the critical mineral hub. It's our main asset for the company, producing critical materials for the clean energy transition, and there is really no facility like it that I know of in the world. Next slide. I may be making some forward-looking statements, and those are included in this slide number two. Next slide. Energy Fuels is a leading U.S. producer of uranium, vanadium, and rare earth elements, creating clean energy for a better world. Next slide. I've talked about the periodic table before, but it is also good to talk about it again because I want to remind people of all these new elements that are required for decarbonization and electrification that nobody even talked about 10 or 15, 20 years ago.

Energy Fuels between our uranium activities, rare earth activities, vanadium, and potential to recover radium for medical isotopes, is gonna be, or currently is or will be able to recover between 8 and 10 of these elements on the periodic table. I don't know of any other company that will be able to say they'll be able to recover that many elements in due course. It's very important. It's the future of decarbonization, electrification, and we're very proud of that, and the way that we've been able to place and position the White Mesa Mill and our assets to do this effectively. Next slide. Again, just to remind people, uranium for nuclear energy, which provides 50% of the U.S. zero carbon electricity, which is very important for decarbonization, and it's almost impossible to meet the goals of decarbonizing without nuclear energy.

Rare earths, critical elements used for the powerful magnets used in electric vehicles, wind, and other high-tech appliances. It is truly remarkable. If you want the highest efficiency electric vehicle, it needs rare earths to be the most efficient. Vanadium, primarily used for high-strength steel, but also used in getting increasing uses for grid-scale batteries. The medical isotopes, as I mentioned, you know, we're advancing our strategy to recover primarily radium-226 and 228 for emerging cancer therapies. We also continue to recycle uranium and vanadium-bearing materials, nobody else in the U.S. has the ability to do that like Energy Fuels. It's been an important part of our business, in up and down markets, particularly down markets. We're always very proud of our financial strength with significant cash in inventories, and I'll talk about that more later. Next slide.

Now for the Q2 highlights and a picture of the Pinyon Plain Mine that I built in 1987, and it's really, again, a remarkable deposit. Next slide. We ended the quarter, June 30th, with $134 million of working capital. That is made up of $35 million in cash, $64 million of marketable securities, and $33 million of product inventory. If you adjust to current commodity prices, you can easily add another $18 million or so to that working capital at current market value of that inventory.

As I mentioned, zero debt, which we're very proud of because we have probably somewhere in the order of $1 billion worth of assets, and we still hold 766,000 pounds of finished uranium, about 900,000 pounds of finished vanadium, and about 37 tons of finished high purity, partially separated rare earth carbonate in inventory. Next slide. During Q2, we did sell some uranium to a major U.S. nuclear utility, about 80,000 pounds. That was around $4.3 million at around $54 a pound, but a gross par profit, and I want to highlight this, with a gross margin of about 46%. We're still producing or we're still readying four conventional uranium, vanadium mines. That includes the La Sal Complex, the Beaver Shaft, the Whirlwind, and the Pinyon Plain Mine in Arizona.

Final production decisions on these projects will be made based on our inventory levels and market conditions. We also sold PFN technology to enCore for $3.1 million. We had bought the PFN for around 500,000 pounds, so we made a gain of $2.75 million on the sale of the PFN, but we also have the rights to use that if we need it in the future. Right now, we don't have any projects that require the PFN, so we made a nice little profit on the sale of the PFN. In addition to the 766,000 pounds of finished uranium inventories, we have nearly 400,000 pounds of uranium in circuit and in raw materials at the White Mesa Mill.

We really have any order of 1.2 million pounds of uranium in inventory and in circuit or in raw materials. Next slide. Rare earth production. We produced approximately 99 metric tons of high purity, partially separated rare earth carbonate from monazite, and that included approximately 44 metric tons of total rare earth oxides. We are producing the most advanced rare earth material being produced in the United States today. On our phase one rare earth separation project, which should be operational last quarter this year or first quarter next year, we're very excited about that. We are modifying and enhancing the existing solvent extraction circuit at the mill to produce separated oxides. I think this is the only example of this that I know of in the world, where we have a uranium circuit, vanadium circuit, and rare earth circuit all in one building.

We expect to have the production capacity of the rare earth circuit of up to 1,000 metric tons of NDPR per year. Development work has begun. We have ordered most components that are expected to be delivered in Q3, and we expect the phase one cost to build out this separation plant to be a remarkable $25 million, which is absolutely very low cost relative to others, because we're doing it in existing infrastructure. Next slide. Our phase two separation project, we're doing a further engineering work on that, to be in a position, given enough monazite feed around 2026, to produce three-four times what the phase one project is capable of doing.

The phase two project will also include a standalone crack and leach circuit at the mill, enabling us to produce and refine both rare earths and uranium and vanadium at the same time. Phase three is focused on the heavies, but we do plan to do heavy separations later this year in the laboratory, and that will be focused on the Dy and the Tb, which are two very valuable heavy rare earths required to make the most robust electric engines that are more heat, have more heat sensor capabilities than the Dy and the Tb, or the dysprosium and the terbium. Excuse me, the NDPR, sorry. We also acquired the Bahia project in February, and we're advancing that.

We have this substantial land position, around 60 sq mi, with a potential in time to produce between 3,000 to 10,000 tons of monazite sands. We've done our phase one drilling. We have purchased a drill rig. We have people being trained on that rig right now, and we're shipping that rig down to Brazil here in the next month or so, and we'll start our phase two drilling campaign with our own rig. Next slide. Vanadium sales. We didn't make any vanadium sales in Q2, but we still have the ability to go back into vanadium production quite quickly.

What we did sell in Q1, it was about a 37% margin, and it's still an important part of our business plan, but it's not the main focus of the company, but it is the only conventional vanadium processing facility in the United States. As I said, we have nearly, or approximately 900,000 pounds of vanadium in inventory. Next slide. Looking at our working capital, the $134 million of working capital and 0 debt. I mentioned the uranium inventory that we have, both finished, process, and in progress, the vanadium inventories, and if you adjust for current prices, the inventory is worth in the order of $20 million more than what's included in the working capital.

I want to add that it does not include, it does not include our note that we hold with enCore Energy or some of our other investments. We are in a very, very strong and enviable position with our balance sheet. Next slide. Looking at our guidance, we'll sell approximately 560,000 pounds of uranium this year at an average price of between $58 and $60 a pound. We already sold 300,000 pounds to the US Uranium Reserve. We sold the 80,000 pounds I mentioned earlier, and we'll sell another 180,000 pounds, which is equivalent to about another $10 million of revenue that is already contracted to be sold. We expect to put at least 1 new uranium mine in production later this year or early next year.

We're seeking additional long-term supply agreements at higher prices, and we're really focused on the rare earth sector at the mill this year. We're not planning to produce any uranium, vanadium in 2022. We still plan to process around 600 metric tons of monazite and recover around 150-170 metric tons of REO in 2023. We have, we, we plan to advance and commission our phase one separation plant later this year or early next year. You know, we, we are also seeking rare earth offtakes. We're looking to continue to build our supply of monazite. We continue to talk to a number of parties in our advanced discussions with a number of them. It'll be a really good day when I can give more information on that.

In advancing the Bahia project, as I mentioned earlier, and we'll advance it through S-K 1300 assessment reports and NI 43-101. In closing, next slide, just the sun setting in southern Utah. A very pretty picture here, and I'd like to open it up for any questions anyone may have.

Operator (participant)

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press the star followed by the one on your touchtone phone. You will hear a three tone prompt acknowledging your request. Questions will be taken in the order received. If you wish to cancel your request, please press the star followed by the two. Your first question is from Heiko Ihle, from H.C. Wainwright. Please ask your question.

Heiko Ihle (Managing Director)

Hey, Mark. Can you hear me okay?

Mark Chalmers (CEO)

Yeah, I hear you fine, Heiko.

Heiko Ihle (Managing Director)

Perfect. I'm calling in from some little island down in Italy, so apologies if the reception isn't all that great. Excited for all these arrows in your future to have some money, so let's keep that going. Walking through the 403,000 pounds of U3O8 that you have in raw materials and work-in-progress inventory, walk me through where you might stand by the end of the year, both even on a vanadium level as well, but also a U3O8 level, please.

Mark Chalmers (CEO)

You want to walk you want me to walk you through in the, the $400,000 of, raw materials and, and unfinished, uranium?

Heiko Ihle (Managing Director)

Correct, like end of the year plans.

Mark Chalmers (CEO)

Okay. Well, we're not planning to do any additional finished product of uranium this year, Heiko. We, we mentioned the 400,000 pounds because we have alternate feed, we also have various uranium ores. For example, we have material that came from the Mount Taylor project, and it's sitting in stockpile at the mill. We can process that when we decide we want to process that, to, to make that 400,000 pounds into finished goods to complement the 760,000 pounds we already have. We're mainly focused on the rare earths of getting this phase one up and running during the last half of this year and early next year.

We're looking at a potential mill run, in the next one or two years, when we decide we want to do the mill run for uranium ores and potentially vanadium ores.

Heiko Ihle (Managing Director)

That's helpful. Thank you. You wanna go through maybe some longer-term expectations as well?

Mark Chalmers (CEO)

Yeah, you know, as we said, when we look at the uranium business. We have the assets to get up to between 1.5 and 2 million pounds of uranium production per year. We wanna build that out when we get more contracts. Right now, our contracts are gonna be in the order around 500,000 pounds a year. We really don't have the need, unless the price uranium goes up substantially, to produce a whole lot more than that 500,000 pounds per year. We're gonna continue to underpin that with more contracts, we can get up to that 1.5 to 2 million pounds with limited capital, really just working capital.

Now, on the rare earth front, we have the ability or will have the ability, in Q1, to produce up to 1,000 metric tons of NdPr. We believe we're starting to have line of sight to get to maybe half of that. We, we hope it's not guaranteed, but we hope to be able to get up to about half of that, looking to 2024. We plan to continue to build additional feeds of monazite, hopefully in a material way, to get phase one completely booked out and at full capacity in the next year or so. Meanwhile, we'll continue to engineer and permit where required for phase two, which will be 3-4x the phase one.

That'll all be subject to securing a significant amount of monazite to require the build-out of phase two. We are aggressively. When we start looking at who we're talking to and the kind of quantities that we're talking to, to the various parties, we, we, we think that phase two, securing enough feed, is, is, is very possible in the not-too-distant future, but we still got to get a few more of these coordinates lined up here in binding arrangements and commitments.

Heiko Ihle (Managing Director)

That's helpful. Thank you. Moving on from all of that, I mean, one sentence in your release really struck my curiosity. When you were talking about, you know, the engineering of the enhancements for the plans for the NDPR, and I assume the same probably holds true for most people on this call. I mean, you're trying to get to 3,000 metric tons by the end of 2026 with your phase two. Can you maybe walk me through some of the investments into the area, what exactly you have to spend on, your plans for the future, year by year, as much as you can, and also the longer-term monetary impacts that you are just, you know, mentally working with, what you're sort of expecting to see?

Mark Chalmers (CEO)

Yeah. Well, the phase one, as I said, that's around $25 million, and that gets us up to, say, up to 1,000 tons of NDPR per year. That's low because we're doing the crack and leach in the mill, and we're using existing SX building for the separation stage. That's very low, and it's but it's a very attractive strike rate, obviously, on capital. We do not have all the final engineering completed on phase two, but we believe it could be between $250 million-$350 million, somewhere in that order. You know, that would provide a facility that would do 3,000-4,000 tons a year of NDPR, but it doesn't mean that the phase one facility also wouldn't still potentially be operational.

The phase two facility will include its own crack and leach circuit, so we don't have to do any flip-flopping of the current uranium vanadium mill between uranium runs and rare earth runs. We, we believe that our operating costs are going to be low and really as competitive, if not as low as anybody outside of China. We, we have to show that we've secured enough monazite to run that on through.

Heiko Ihle (Managing Director)

Fair enough. That's very helpful. I'll stop hogging the question queue here and get back in queue. Thanks so much for answering the questions, and keep on going all the different directions that you're going. I think it's very impressive.

Mark Chalmers (CEO)

Thank you, Heiko.

Operator (participant)

Thank you. Your next question is from Mike Heim, from Noble Capital Markets. Please ask your question.

Michael Heim (Security Analyst)

Thanks. Hi, Mark. Hey, you just said that you believe your operating cost, cost for the NDPR should be as low as anybody outside of China. If I were to look at Lynas or one of those and talk about gross margins, which we've never really talked about, is it reasonable to be thinking about 50%, 60%, maybe even 70%?

Mark Chalmers (CEO)

Well, yeah, it, it depends a lot, Michael, on. I mean, we have a and again, the reason we haven't gone into, to real details is we're still. I mean, we have a good handle on what we believe they are, but we're still doing some of our engineering studies. We believe that, you know, it's a, they're robust margins. A big part, and I've talked about this before, and I've been criticized a bit before, but it depends what you acquire your monazite for. You know, we're looking at a blended price of monazite that includes purchasing and from our own sources, sort of a hybrid model, a little different. Those are all factors that come up with what the ultimate cost is.

Yeah, I believe we are gonna be in the same order of competitiveness of others, people that you just mentioned and others. Really, a lot of it's gonna be focused on the fact that we're operating in a area that has low water costs, low power costs, very good people skills, labor skills in the United States, and, you know, compared to Australia, a very favorable jurisdiction for low operating capital costs.

Michael Heim (Security Analyst)

Now, I can do the math on, on the 100 metric tons or 1 million kilograms and, and see the potential of $65 million if we're running at peak or so, but that's just for the NDPR. During phase one, what happens to the other heavy REEs? Can they still be sold off, or will you kind of inventory them till you get to phase two?

Mark Chalmers (CEO)

They, they can. The Sm+, we call it samarium plus and heavier-... we will make a concentrate that can either be sold, or we can hold it, and the most likely scenario is we'll probably hold it. Because really the Dy and the Tb are a couple of the elements that particularly U.S. government is very, very interested in. Actually a lot of people in the world are very interested in those, those elements. You know, as I said, it's, you know, it's a very tricky business here. I believe that the Chinese continue to manipulate the market at some level because they wanna continue to be the dominant force in rare earths in the world.

you know, we're trying to position ourselves in a way that provides us and decouples from, you know, our You know, to have our own capabilities internal as much as possible.

Michael Heim (Security Analyst)

Can you give us any indication how much the NdPr represents in terms of the overall value of the heavy metals, the heavy?

Mark Chalmers (CEO)

Yeah. NdPr, it varies because not all ore sources have heavies in them. For example, bastnäsite has very little heavies, but the NdPr is, generally speaking, around 75% of the total value of the rare earth oxides that you recover. A lot of people try to count every element in the, like, in the rare earth feeds. We really count the neodymium, praseodymium, dysprosium, terbium, and so the heavies are generally about 25% of that value, and the NdPr is around 75%. It could be 80%, 70%, somewhere in that order.

Michael Heim (Security Analyst)

Okay, final question for me. You said twice that talking about phase two and phase three, if you get enough monazite, does that imply that you feel if contracts are lived up to, you have enough for what you want to do with phase one?

Mark Chalmers (CEO)

Well, as I said, I think, you know, we're, we're, we're, we're rounding up what I'm, I'm believing is, around 50% of our sort of line of sight to phase one. We are talking to multiple parties, and, and I know I've said this before, we're talking to probably 6 different groups. Those, those all have the potential, any one of them, to, to fill up phase one. Again, we've got to get them signed up. One of the things I've found is that a number of parties that, that were kind of, you know, looking at where and who they could do business with, a lot of them have come back to us because they feel that Energy Fuels offers something that others don't.

The main thing we offer is operating in the United States of America, processing in the United States of America, and also being able to operate in an environment where we don't have to pay these extraordinary operating costs like you're seeing currently in Australia.

Michael Heim (Security Analyst)

Okay. All right. Thank you, Mark.

Operator (participant)

Thank you. Once again, ladies and gentlemen, that is star one, should you wish to ask a question. Your next question is from Joseph Reagor from Roth MKM. Please ask your question.

Joseph Reagor (Managing Director and Senior Research Analyst)

Hey, Mark and team. Thanks for taking the questions.

Mark Chalmers (CEO)

No worries, Joe.

Joseph Reagor (Managing Director and Senior Research Analyst)

First thing, and a lot of the stuff I wanted to touch on already was, but just kind of a little bit of a housekeeping thing. Your G&A expense seems that the last four quarters, it's been quite a bit elevated. Is there anything driving that, or is that kind of like the new normal?

Mark Chalmers (CEO)

Well, the, the new normal is, is we're, we're under increased operational activities across the company. You know, we've, you know, hired, I think last... Since the beginning of the year, I think we've hired, like, 30, 30 some people. You know, we're, we're developing, you know, a number of different projects in different locations. We're capitalizing some of that, but it's, I think it's just the new normal of getting the flywheel going on, the, the various projects that we have. You know, it doesn't just happen without making it happen, and when you go from more of a standby mode to an operational mode, you know, there's a certain amount of burn rate that you just have to increase to get there. Tom, I don't know if you Tom Brock, our CFO, is on the line.

I don't know if he has anything to add there.

Tom Brock (CFO)

No, Mark, thanks. Thanks for the question. I agree. As we move out of this standby care and maintenance mode into an earnings mode, of course, we've upgraded some talent, added more boots on the ground to those, those projects that are, are underway. I'd also add in that G&A, you've got, for the three months ended or six months ended June 30, you've got stock-based compensation of, of, $2.7 million. With additional heads comes additional, units. Again, that's, that's non-cash.

Joseph Reagor (Managing Director and Senior Research Analyst)

Okay, that's helpful. Second thing, there were some reports 2 weeks back about there being a potential moratorium on mining uranium for a certain section of Arizona. Does that impact you guys in any way or all, or all of your assets, like, outside that, that specific area?

Mark Chalmers (CEO)

We don't believe so because we have valid existing rights. We've have a number of assets-... that are fully permitted, ready to go, like the Pinyon Plain. We're advancing that right now, and we're just full tilt on that project. You know, there, there is discussion of a monument. We haven't heard exactly what the outcome is going to be there, but we do not believe it's going to change our activities at all with the Pinyon Plain mine, period.

Joseph Reagor (Managing Director and Senior Research Analyst)

Okay. So to be clear, your, your asset is outside where the proposed monument is, or

Mark Chalmers (CEO)

No, no.

Joseph Reagor (Managing Director and Senior Research Analyst)

cut out as a exemption.

Mark Chalmers (CEO)

It, it's, it's inside, but it is a project that is fully permitted, been supported by the U.S. Forest Service for 35 years. They've defended that. We, we believe the valid existing rights are sound, and we're going to go, go forward with the project. Dave Frydenlund, our legal counsel, is on the call. Dave, do you have any comments?

David Frydenlund (EVP and Chief Legal Officer)

Mark, I think you summarized it. Under the law, you, you can't, the president cannot. Any national monument proclaimed is subject to valid existing rights. The area where our mines in Arizona are, is subject to mining withdrawal right now, which is subject to valid existing rights. We've established valid existing rights, which have been upheld by the court for the Pinyon Plain Mine. So we expect that those will be honored in if a new monument is proposed.

Joseph Reagor (Managing Director and Senior Research Analyst)

Okay. I, I appreciate the clarity there, and it I, I was under the impression you guys were exempt, but I, I just wanted to make sure we were clear on it. Then kind of a last thing, you know, as you guys look at, you know, current operating expenses and growing the business, how should we think about, you know, when you guys will start to, you know, sell extra inventory or restart operations? Is, are we, are we at the point where you guys do have a fixed price in mind, even if you can't disclose it? Or is there a fixed timeline that you guys are aiming for? You know, how, how should we think about that?

Mark Chalmers (CEO)

Well, we're, we're really kind of focused on building a book where we have at least a $20 margin on our uranium production. As you can see with a number of our inventory sales, we're, we're getting more than that currently with a lot of our inventories. Now, a lot of that's come from alternate feed, but we're trying to build a, a, a, a book with at least that $20 margin, likely more with some of our operations like Pinyon Plain. But that's kind of how we're trying to approach it, is, is, you know, everybody's got to get to a point where they're making money here. We, we're, we're not out there to do recreational mining, but we're just trying to build the book.

Really, frankly, with the increased cost, the difficulty of getting additional labor, reagents, you know, we really need uranium prices to go up, you know, somewhere in the 70s plus, before we'll continue to build that book.

Joseph Reagor (Managing Director and Senior Research Analyst)

Okay, thanks. Appreciate the color. I'll turn it over.

Operator (participant)

Once again, that is star one, should you wish to ask a question. Your next question is from Reid Rubin from, Oh, sorry, he is a private investor. Please ask your question.

Reid Rubin (Shareholder)

Mark Niger, I gather they produce 5% of uranium worldwide, and the mine is owned by a French company. Do you have any intelligence as to what might break there?

Mark Chalmers (CEO)

Look, I mean, there's certainly unrest, you know, coup going on in Niger. It, it, it does, it's, it's a, it's a country that has a long history of uranium production, Reid, but I really don't, I'm not close enough to the coal face there to figure out where that's going. But it does highlight a number of things, doesn't it? That when you look at where the uranium comes from around the world, places like Niger and Russia, and Kazakhstan, Uzbekistan, you know, there's risk in a lot of these developing countries. Yeah, I don't have any real optics. I mean, I've been reading some of the releases from, like, Global Atomic and others, but I don't have a crystal ball on where that's going.

Reid Rubin (Shareholder)

Any implication in today's prices?

Mark Chalmers (CEO)

You say any implications on, on current prices? Is that what you're saying?

Reid Rubin (Shareholder)

Yes, sir. Yeah.

Mark Chalmers (CEO)

Yeah. Well, you know, I think that whenever you look at historically, if you look at the uranium market, when the price starts to move, it usually isn't any one thing. I mean, if you go back to 2005 and 2006, you know, we had a number of floods in Athabasca. You know, had some flooding in at the Ranger Mine in Australia. You know, a lot of times, a number of these things working in concert really can move the price. Now, I think that a number of things that are likely to move the price is, one, the price is too low for replacing uranium at current prices.

You got the increasing demand, you got reactors staying online, you got Japan firing up, then you have something like Niger, you know, putting a bit of a red flag over that country. I think when you start looking at these things in concert, it has the potential to really move the price, where it should be, which is at 70 or north of 70, to get additional new production coming to the market.

Reid Rubin (Shareholder)

cost of recovery. Thank you very much, sir.

Mark Chalmers (CEO)

Thank you, Reid.

Operator (participant)

Thank you. There are no further questions at this time. Please proceed, sir.

Mark Chalmers (CEO)

All right. Well, firstly, again, thank you for your interest in Energy Fuels. It is a unique story. As I said earlier, we're working hard. We're working really hard as a company. We're working well as a company, and we have got what I believe is an extraordinary future. It's, it's, it's, it's difficult out there to actually deliver new production, and our company is a company that delivers new production. We're not a promotion, promotional company, and we're trying to build these fundamentals on something that will, you know, basically capitalize on the clean energy tech going forward and the energy transition. I think we're well on our way but I do appreciate our shareholders and the support of our shareholders. Thank you very much and have a good day.

Operator (participant)

Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect.