Triple Flag Precious Metals - Q1 2023

Transcript

Operator (participant)

Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everybody to the Triple Flag Q1 2023 results 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 followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star and the number one. I would now like to turn the call over to CEO Shaun Usmar. You may begin.

Shaun Usmar (Founder, CEO, and Director)

Thanks, Bailey, and good morning everyone, and thank you for joining us to discuss Triple Flag's first quarter 2023 results. Today, I'm joined by my CFO, Sheldon Vanderkooy, my Senior Vice President of Corporate Development, James Dendle, and I'll also be joined by our Vice President of Talent and ESG, Katy Board, and our Vice President of Finance, Eban Bari, in the Q&A section. Turning to slide four. The first quarter of 2023 was the first since completing the acquisition of Maverix Metals, which contributed to another record quarter for Triple Flag. This includes sales of 26,599 gold equivalent ounces, resulting in revenue of $50.3 million and operating cash flow of $38.9 million, which are new quarterly records.

We've also seen a more than 10-fold increase in trading liquidity with the addition of many new quality investors to our register, as well as inclusion to the GDXJ, S&P, and TSX Global Gold and Solactive Global Silver Miners indices. Our portfolio continues to perform well. The assets that we acquired from Maverix have shown great progress and continue to reinforce our investment thesis. Operational performance at Camino Rojo and exploration success at Beta Hunt are two highlights. I'm also grateful to my team and the former Maverix management team, who worked well together to deliver the integration of the two businesses to a high standard, and enabling us to achieve the anticipated run rate of $7 million in annual synergies.

I'm very pleased to report that as we celebrate our seventh anniversary as a company and second anniversary of our initial public offering, our share price is up 31% in U.S. dollars and 45% in Canadian dollars, with a lot of room to continue to close the gap with our senior peer valuations as we continue to focus on delivering value to our shareholders. I'll now turn it over to Sheldon to discuss our financials for Q1 2023.

Sheldon Vanderkooy (CFO)

Thank you, Shaun. Turning to slide five, we had a record first quarter, realizing over 26,500 gold equivalent ounces, reflecting the addition of the Maverix's assets to the portfolio. Operating cash flow in the quarter was also a record at nearly $39 million. Adjusted net earnings in the quarter was $0.07 per share. Adjusted earnings was impacted by the step-up in value of the Maverix's assets on acquisition, as well as additional costs in Q1 due to the Maverix's acquisition in the quarter. We remain on track to realize identified synergies of at least $7 million annually from the transaction. We also want to highlight that we recorded non-cash cost of sales of $5.6 million relating to gold sales from prepaid gold contracts. This equates to $0.03 per share.

This is purely accounting, as this is a non-cash expense moving to the income statement. Our cash flow in the quarter was $0.20 per share, a 15% increase over the corresponding period in 2022 at $0.17 per share. Our asset margins in the quarter were 88%, slightly lower than the 90% levels we have traditionally experienced. This figure was impacted by acquisition accounting as metal inventory on Maverix's balance sheet on the acquisition date was recorded at fair value and then sold during the quarter. Going forward, we forecast asset margins to return to the 90% levels. We also declared our $0.05 per share dividend. Upon payment of that dividend, we will have paid over $65 million in dividends to shareholders since our 2021 IPO. I'd also like to comment on our strong balance sheet.

Our total cash outlay on the Maverix's acquisition was $146 million, consisting of cash consideration paid to Maverix shareholders, cash paid to retire the Maverix's credit facility, and transaction costs incurred. At quarter end, we owe $80 million on our revolving credit facility. Subject to new investments we may make, at current metals prices, we forecast that internal cash generation will allow us to be debt-free by year-end. I'll now turn to Slide six. Slide six highlights three very important aspects of our portfolio, being asset diversification, precious metals focus, and a portfolio which is predominantly centered in the Americas and Australia. Our revenue diversification meaningfully increased with the addition of the Maverix's portfolio. Cerro Lindo was our biggest contributor in the quarter, with approximately 28% of quarterly revenues, and no other asset accounted for more than 15% of revenues.

In the past quarter, gold and silver accounted for 95% of our revenues, amongst the highest precious metals percentages in the sector. By geography, the country with the greatest contribution to our revenues was Australia. After Australia, our portfolio was predominantly located in mining-friendly jurisdictions in the Americas. I'll now turn to slide seven. Triple Flag went public in May of 2021, so we are approaching our two-year anniversary as a public company. Looking back, I'm proud of the progress the team has made in these two years, and I'm excited about the future possibilities. First, I'd like to look back on our share price performance since IPO. I think it is fair comment that many IPOs disappoint on share price performance.

Our IPO investors have been well rewarded for their trust in us as our share price has increased over 30% from IPO, well in excess of our peer group and the GDX performance. We have declared dividends of over $65 million since our IPO. We have increased the scale of the portfolio meaningfully. We are guiding for 100,000-115,000 gold equivalent ounces in 2023 as compared to 63,000 in 2020. We see this increasing to over 140,000 in the next five years. Our portfolio now totals 229 assets, increased from 75 at our IPO. We now have 29 paying assets as compared to 15 at IPO. Our ESG practices have been recognized by Sustainalytics as we are ranked 4th out of 114 companies.

We expect this to continue in the future. In 2022, we increased our dividend and our cash flow continues to grow. In 2022, we also listed our shares on the New York Stock Exchange, increasing access to U.S. investors. In 2023, our shares were added to three indices. Triple Flag has made much progress since our IPO, and we are well-positioned to continue our track record of creating shareholder value. I'll now ask James to speak to some of our portfolio highlights.

James Dendle (SVP, Corporate Development)

Thanks, Sheldon. Overall, portfolio assets are performing well. We expect deliveries from Northparkes to be back-end weighted with open-pit mining of E31, which hosts a higher gold grade than the current run-of-mine. In Peru, unusually heavy rainfall caused by Cyclone Yaku affected the region in which Cerro Lindo is located, resulting in the suspension of production for approximately two weeks during March. Nexa expects to increase production in the coming months and has maintained its 2023 guidance. Also, drilling in the southeast area of the mine is continuing to extend mineralization, which benefits our stream. Camino Rojo, a gold mine operated by Orla Mining and acquired as part of the Maverix asset transaction, is performing to plan and is on track to meet its 2023 guidance of 100,000-110,000 ounces.

Fosterville poured its fourth millionth quarter since beginning the Sulfide project in 2005, which is particularly impressive when one considers that the mine had a reserve of around 1 million ounces at the time. Agnico Eagle has reported that abatement trials of the new low-frequency noise were completed in Q1 2023, and believes that the results are promising, and they are now being considered by the EPA with respect to the current prohibition notice. Agnico has reaffirmed its guidance for the year at Fosterville of between 295,000 and 315,000 ounces. Karora announced record quarterly results and strong exploration results for Beta Hunt, an Australian gold mine we acquired as part of the Maverix transaction.

From our perspective, the expansion to 2 million tons per annum delivers near-term growth, and the strong exploration results position Beta Hunt for a long future. I'll turn it back to Shaun.

Shaun Usmar (Founder, CEO, and Director)

Thanks, James. Turning to slide nine, Triple Flag transitioned from a private to public company two years ago with a concentrated shareholder register with limited liquidity. Our portfolio characteristics compared favorably with our targeted peer set in terms of duration, cost position, precious metals concentration, our focus on royalties and streams, and our jurisdictional concentration in good mining regions. The impediment to our valuation potential was dominated by our limited liquidity profile. Our focus remained as substantial owners of this business and continuing to build value for our investors in a disciplined manner as we have done the prior five years since founding the business. We're now very happy to see our shareholder base expand since the Maverix acquisition as we welcome many new investors into our stock.

As shown on this chart, our three-month average daily traded volume in the first quarter of 2023 increased by over 10 times compared to Q4 of 2022, all while continuing to exemplify our belief that strong management and insider ownership is critical for a successful business. This dramatically improved liquidity profile has been a primary driver of this enhanced investor interest and bodes well for the future as we seek to broaden our investor appeal and ownership, removing an obvious obstacle to closing the valuation gap with our senior peers. We view our alignment with our shareholders as a differentiating part of our business strategy, acting as owners and being prudent shepherds of our capital.

Moving to slide 10, we embarked on a journey seven years ago to build the next senior precious metal streamer and provided competitive structured finance to an underserved mining sector while seeking to add value to our mining partners beyond the competitive cost of funding via our approach to ESG, our commercial and technical capabilities, and our global networks. I believe our track record is revealing the quality of this team and the ability to execute against our strategic objectives. As major shareholders ourselves, our focus remains on disciplined deal execution and value creation, pursuing sensible and accretive deals in a patient manner rather than pursuing growth at any cost. We appreciate the support and trust of our stakeholders, and we look forward to providing further updates soon. Thank you. With that, Bailey, happy to answer any questions.

Operator (participant)

Thank you. At this time, I would like to remind everyone in order to ask a question, press star, then 1 on your telephone keypad. Your first question will come from the line of Cosmos Chiu. Your line is open.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Great. Thanks, Shaun, Sheldon, and James for the presentation and taking my questions here. Maybe my first question is on accounting. Just wanna dive a bit deeper into the $5.6 million in the non-cash adjustment to cost of sales related to prepaid contracts? Has there been a change in accounting policies? Are these contracts, is this related to contracts coming from Maverix, including Auramet? I'm just trying to get a sense in terms of what happened here, if there's any changes and how we should look at it on a go-forward basis.

Sheldon Vanderkooy (CFO)

Hi, Cosmos. This is Sheldon. I can answer that.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Hi, Sheldon.

Sheldon Vanderkooy (CFO)

As a technical matter, it's not an accounting change, but I think it might be perceived as something akin to an accounting change because what it is the revenue from the prepays come through, and this does include the Auramet contract. This is, we had a small prepay on our Q4 statement, but this has just grown in amount, and I think that's what gave it a little more prominence. The cost of sales comes through and reduces the earnings, but the bulk of that relates actually to the acquisition cost of the Auramet contract that we acquired on the acquisition. What Maverix did previously is it adjusted that out as an adjusting item when it bridged from earnings to adjusted earnings.

When we looked into this with the accountants, we determined that that wasn't appropriate to do as an adjusting item. We wanna stress it has nothing to do with any issue with the actual contract. It's actually purely accounting, and the cash flows fully show up because it's a non-cash charge.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

I agree because, you know, I think earnings came in lower than consensus, your cash flow came in to bang on. You know, I agree it's an accounting thing. On that, like, is this recurring? Like, how do we look at it in Q2, Q3, and Q4 coming up?

Sheldon Vanderkooy (CFO)

The prepay is they actually get revalued 'cause they're considered a financial instrument. The cost of sales will basically be what the marked-up cost is. When you look at our prepay volumes, in order to determine what that non-cash charge would be, it would be the per ounce value on the latest quarter, quarterly mark. We should be able to work through, you know, quite well with that to understand what the cash flow impacts are. Sorry, the cash flow impact flows directly to cash flow, but what the EPS impact is.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Okay. Great. Maybe switching gears a little bit. Sean, as you mentioned, strong start to Q1 on track to hit your full year guide in the 100-115. I know in the past you never really gave us kinda any indication in terms of quarter-over-quarter, but I'll try anyways. It sounds like, you know, there's a Northparkes shipment that didn't make the cutoff in Q1, could come in in Q2. Looks like RBPlat's, you know, implementation of operation strategies could improve in future quarters. Are we looking at a Q2 that's gonna be, you know, stronger than Q1, and how does it kinda look quarter-over-quarter?

Shaun Usmar (Founder, CEO, and Director)

Yeah. Cosmos, I know, you know, we'd all like the sort of comfort of a more sort of metronomic and reliable quarterly timeframe.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Yeah.

Shaun Usmar (Founder, CEO, and Director)

I think it was interesting seeing Bolt's comments in his earnings recently, where he talked about, you know, just the variability, particularly associated with stream's business. Stream deliveries, and you mentioned Northparkes. We've got several of those sorts of things where, within the period of a year and beyond, you know, you have pretty good line of sight to that. You know, your quarterly shipment windows are just not things that I wanna opine on, just given, you know. For example, there, you're going from New South Wales on rail to, you know, a port, then all the way, you know, crossing the hemisphere to either, you know, China or Japan. There is always room for slippage around a quarter.

You know, I think we feel very comfortable with what we put for the year. James' comments as well on things like Northparkes and even things like RBPlat and that with, you know, they start the, that, you know, that should be back-end weighted. I think you're still gonna see some of the variability around, you know, windows or periods. You saw that last year, right?

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Mm-hmm

Shaun Usmar (Founder, CEO, and Director)

I think within, you know, the fullness of the year, it revealed itself. You still get the variability on quarter-to-quarter.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Great. maybe one last question to Nevada Copper. I guess.

Shaun Usmar (Founder, CEO, and Director)

Yeah

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

... they announced a bought deal. I just want to understand the situation. It sounds like, you know, they have likely over $100 million committed. I guess my question is in two parts. Number one, how much more is Triple Flag in terms of, you know, commitment for further sort of capital injection? It sounds like, you know, $10 million in Tranche A, you know, there is one-third that's Triple Flag, the $15 million in metal deliveries or promise that will be reinvested. Another potential increase from $25 million-$35 million in terms of the credit facility. How much more is Triple Flag, you know, in terms of your commitment on a go-forward basis?

If you can talk to, you know, they're getting capital injection in total of over $100 million. Is that sufficient for their underground sort of restart?

Shaun Usmar (Founder, CEO, and Director)

Look, firstly, we're really pleased with the announcement, and I think the very strong support that the sort of key investors, between particularly Pala, Mercuria, who are contributing equity alongside ourselves, you know, for this. Look, Randy, Tom Albanese, the team have made some really significant progress. I think the funding, which was announced late last year, this is very much consistent with. You know, the raises that were anticipated that were needed to for them to finish the ramp-up. You know, the estimates are that the, you know, this should be ample for them to be able to be successful with that ramp up. You know, they've made progress now with the vent fans, it being concluded. They've crossed two of the three dikes which are on the critical path.

It's as far as I can see, they should be on track for, you know, the Q3 start of the mill, which is an important feature. Just to remind you and others on the call, I mean, we've not included ounces from this in, you know, in the 2022 guidance. It's, you know, indeed, any ramping assets, that's always been our stance. I'll give you that as a backdrop. I think the commitment from us, and I'll ask Sheldon to comment, he's done a wonderful job leading the negotiations on our behalf on this. It's a modest period where, you know, consistent with our business model, you know, we've got a very secure position overall in the capital stack, which we've maintained.

We've really spread the cash component of this, and have the smallest sort of incremental contribution, of anyone in this period. Sheldon, you wanna comment?

Sheldon Vanderkooy (CFO)

Hey, Cosmos. I mean.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Hi, Sheldon.

Sheldon Vanderkooy (CFO)

Nevada Copper put out a pretty fulsome re-release yesterday. There's a lot of components to the package. With respect to us, it's actually quite a bit more, more simple. It's a $150 million package in total. Our commitment under that is just over $21 million, and it comes in really two pieces. One is there's a couple of tranches of A2 debt, that's senior debt. It's only subordinated to the KfW project financing, but it sits in second lien position. Of the total of $20, we're committing to a third of that, so that'll be $6.6 million.

The other thing that we've committed to is, subject to certain conditions, we will reinvest net stream cash flows of up to $15 million in 2023 and 2024. What that means is deliveries that are made under the stream would be made to us. We'd realize our net proceeds after the ongoing payment, and then we'd lend them an equivalent amount of money. That lending would actually come in at the A2 level too, so that's nice and secure from our standpoint. That is capped at the $15 million. It's only if Nevada Copper needs the funds. It's also limited to the net cash we really need on stream delivery.

There's no net new fresh cash outflow on us, for that component. We thought that was quite reasonable from our perspective.

Shaun Usmar (Founder, CEO, and Director)

Cosmos, I think just one thing to add, which I think is worth highlighting is, you know, the package which was announced really does a lot to clean up the balance sheet, for, you know, for investors coming in. There's I think over $80 million of pilot debt that is being equitized, which I think is a welcome, a welcome development.

Cosmos Chiu (Managing Director and Head of Canadian Metals and Mining Research)

Great. Thanks again, Shaun and team. Those are all the questions I have. Thank you.

Shaun Usmar (Founder, CEO, and Director)

No, thanks. Thanks, Cosmos.

Operator (participant)

Your next question comes from the line of John Burr. Your line is open. John, if you're speaking, we can't hear you right now. You may need to mute, unmute locally. All right. The next question comes from Shane Nagle. Your line is open.

Shane Nagle (Managing Director and Head of Mining Research)

Thanks. Maybe Sheldon, best for you. On the global minimum tax rate, if I recall correctly, Maverix didn't have any foreign streaming income, and they would've had some tax loss carried forward to Canada that you could hopefully use to shelter some income as well. Maybe just remind us of what the impact is that you would see from that global minimum tax rate and maybe on approximate impact on your net asset value if legislation's enacted before, I guess, next year.

Sheldon Vanderkooy (CFO)

Thanks, Shane. It's something that we, along with a lot of other companies, are monitoring closely. First of all, just on the Maverix portfolio, you're right. All of their income was effectively subject to Canadian tax or taxed in Australia or the United States. They didn't have the offshore structure that some of the streaming companies do. And we've maintained that. We haven't moved any of their streams, you know, offshore. We've maintained the status quo there. In terms of minimum tax, I mean, the latest statements are is the Pillar Two is scheduled to come into effect for 2024.

The Canadian government has made statements that it implies it intends to meet this timeline as well. We're still waiting for the legislation from the Canadian government, but we expect to see that, I believe, over, you know, the next few months. It's interesting because there's a minimum revenue threshold that's been put out by the G20, which is the EUR 700 million threshold, and we're well below it. If the Canadian rules are in accordance with the guidance that's been put out to date, we actually would fall below it, and we wouldn't be subject to it, which of course would be good.

If, you know, you take the hypothetical that it does apply in 2024 and it does apply to us, the impact is fairly muted. It's a less than 4% impact on NAV on our calculations. You know, I'd prefer not to pay the global minimum tax, but it's not too large in quantum.

Shane Nagle (Managing Director and Head of Mining Research)

Great. Thanks. Shaun, you didn't give out quarterly delivery guidance, I understand. On Cerro Lindo, we've seen a few moving pieces. Obviously, they increased their quotational period near the end of last year, had the heavy rainfall in Q1. You know, without, I guess, specific guiding to the quarter, but when would you expect to get to back to, I guess, a normal delivery run rate from that asset? Thinking the latter half of Q3, something like that?

Shaun Usmar (Founder, CEO, and Director)

Yeah. Look, firstly, I think we're through the QP moves that we sort of telegraphed and commented on last year. I mean, it was obviously a fairly sizable commercial move that we'd experienced. You know, I think the... Even though Cerro Lindo has reiterated or Nexa has reiterated the Cerro Lindo guidance or indeed their guidance for the year, you know, the two-week window will have some impact on us in terms of timing of deliveries on the quarter. You can think about it. I mean, their run rates have actually been on an annualized basis, very robust for us in terms of silver deliveries. We expect the same for this year. I think in fact, in our five-year outlook, I think 2025 is seen as being a sizable increase.

James, any thoughts on that?

James Dendle (SVP, Corporate Development)

Yeah. I mean, for the quarters, it's sort of generally, you know, reasonably consistent over the first three quarters of the year and, but then we're expecting, you know, some increased deliveries towards the back end. I suppose that in aggregate, it's expected to be back-end weighted. That was the view we had earlier this year. We'll have to see if the, you know, cyclonic activity and the suspension they experienced impacts that timing. Generally speaking, it was, you know, weighted towards the back half of the year, as you say.

Shaun Usmar (Founder, CEO, and Director)

Yeah. I gotta say, so, Cosmo, just a philosophical metaphor, for yourself and Cosmo's earlier question. You know, as someone who's always been in mining companies where you actually have controls of the reins with, you know, finance teams that provide forecasts, that alone, most mining companies struggle with. I think what, you know, you're doing is seeing through us, who are seeing through finance teams, and the uncertainties and variabilities. I know it's stating the obvious, but we're always going to, I think, try and adopt just a, you know, a fairly, level-headed view when we put this out. I think you'd appreciate when you look back over time in any of these things, you always have sort of quarterly variability.

I think the annual guidance is the area that we're gonna continue to focus on. I have a lot of sympathy for the difficulties in the, you know, in the quarterly spreadsheets, but, you know, it's very hard to say, take the annualized number and divide by four because it's just never like that, right?

Shane Nagle (Managing Director and Head of Mining Research)

Yes, absolutely. Thanks for the call from me.

Shaun Usmar (Founder, CEO, and Director)

Thanks. Thanks so much. Yeah.

Operator (participant)

Again, if you would like to ask a question, please press star, then the number one on your telephone keypad. Our next question comes from John Tumazos. Your line is open.

John Tumazos (Owner and CEO)

Thank you. Just elaborating on the last discussion, quarterly earnings are meaningless for gold companies 'cause most of the fluctuation are almost measurement precisions in ore grade estimation to a tenth of a gram. That it's good of you not to waste your time on quarterly guidance. My question involves how you evaluate new investment opportunities, as Triple Flag is so much bigger with Maverix's, with debt almost repaid, and twice as many producing assets as the onset. How many professionals with the merged firm are evaluating new investments? Do you read submittals from third parties or investment dealers or whatnot? Do you rely on your own historic relationships and proactively propose and seek deals? For example, Sean would know all of the fraternity of ex-Barrick managers from different waves of regime change at Barrick.

That's a big fraternity across the industry. Seeking out deals proactively is one allocation of time as opposed to reactively looking at proposals. Please.

Shaun Usmar (Founder, CEO, and Director)

Yeah. John, it's great to chat to you. Look, I think as you probably appreciate, we've done most of our deals proactively. We get to see all the bank-led stuff and, you know, it's not like we're not gonna participate. A number of our sort of assets that we've added to the portfolio have come via that channel. The vast majority have come via networks and essentially bilateral deal flow. Just this week again, you know, we put out several proposals that, you know, sort of the via that channel of generative work that we've done. We've seen now we must be approaching 700 opportunities over the seven years.

You can figure out the amount of shoe leather that it takes to actually convert those into real deals on the other end. Some, well, a huge number just go nowhere. Some have a gestation period that occasionally when there's a use of proceeds or a good corporate need. Very often, that can be in the form of things like people looking as part of their capital stacks in an acquisition or otherwise for a partner that they know will help structure a deal in a very sort of reliable and timely way in a competitive fashion.

Because we often get the question from investors, "Well, why would a management team ever do that and not just go out and run a sort of competitive process?" The answer is, if you've got a, you know, a limited execution timeframe, you wanna go to a team that's knowledgeable, has a track record, and can actually get things done. They know that you're not gonna jam them last minute in order to squeeze out more basis points or, you know, do things that would not help them in the ultimate goal of, say, landing a deal on an acquisition. That's the backdrop. You know, the earlier part of your question, you know, the Maverix's transaction. As you'd appreciate, you know, there were, you know, they added, I don't know, 26%.

Well, they've got about 20, call it a quarter or so, the shareholders of the business. You know, there's a lot of duplication of effort. These are, you know, we're not adding another mining company. Really, what we've done with the integration is we've been fortunate to bring across Warren Beil, the general counsel. That's the one net addition. Essentially, the team, the focus, and the capability is on the deal-making front is the same as it's been for the last seven years. A lot of that has been predicated on the way we ran M&A at Xstrata. I've worked in BHP Billiton, other places, and deal teams, and the way we ran these things in certainly Billiton and Xstrata to me was very effective.

That was limit the amount of time and effort you spend on internal process. Make sure that you've got, you know, a smaller high-functioning team of individuals who are owners and are highly incentivized, very motivated. Utilize, you know, external expertise in a very surgical way when you need it for a particular, whether it's technical, commercial, tax, regional, capability. We've done that, I think to quite good effect over the last seven years. It allows us to get the information we need to essentially make the best decisions we can in the face of uncertainty. We always use that in coming up with underwritten cases. Hopefully that answers your question.

John Tumazos (Owner and CEO)

Thank you. And congratulations on all the progress.

Shaun Usmar (Founder, CEO, and Director)

Thanks, John.

Operator (participant)

There are no further questions. At this time, I will turn the call back over to Shaun Usmar, CEO, for closing remarks.

Shaun Usmar (Founder, CEO, and Director)

Yeah, Bailey, thank you. Thanks everyone for the questions. I know that, there's a number of participants as well who are, you know, having to try and do this on the, on the fly today on site visits. I really appreciate the demands in this earnings period on people. Yeah, just by way of closing. Look, it's been a great start. Most acquisitions, the MBA books will tell you often don't achieve their sort of anticipated benefits, often due to poor integration. The team's done a great job on that. These are not complex businesses to integrate. I think you're really seeing the window outside of some of the accounting noise of why we went about this, and you're definitely seeing the benefits in terms of liquidity.

We've got some great new investors and names on the register as a consequence of this transaction. As I sit here today, as on our seventh, pretty much our seventh anniversary though, and I look at the opportunities that lie ahead, I still don't see a firehose of new capital available from general sources for this sector. Everyone seems to have found religion more or less on the energy transition and other things. I just think there's a better opportunity going forward than we've seen to date, and I think there's a very exciting prospect for us to continue to deploy capital and really grow this business. With that, just thank you all. Thanks to our shareholders, our stakeholders, and our mining partners, and a special thanks to my team. Thank you.

Operator (participant)

This concludes today's conference call. You may now disconnect.