Great Panther Mining Ltd

TSX:GPR

Earnings Call Transcript

[Operator]

Thank you for standing by. This is the conference operator. Welcome to Great Panther Mining's First Quarter 2019 Financial Results Conference Call and Webcast. [Operator Instructions]I would now like to turn the conference over to Alex Heath, Director of Corporate Development and Investor Relations. Please go ahead.

[Alex Heath]

Thank you, Arielle. Good morning, everyone, and thank you for taking the time to participate in our call today. With me here this morning are James Bannantine, President and CEO; and Jim Zadra, Chief Financial Officer. Before we begin, I'd like to mention that some of the commentary on today's call contains forward-looking statements. You should be cautioned that actual results and future events may differ from those noted in today's presentation. The commentary also refers to various non-GAAP measures, definitions and reconciliations that are included in the company's MD&A for the quarter ended March 31, 2019. All dollar amounts expressed in this presentation and the associated financial statements in MD&A are in U.S. dollars unless otherwise noted. I'd like to remind everyone that this conference call is being recorded and will be available for replay later today. Replay information and the presentation slides accompanying this conference call and webcast will be available on our website at greatpanther.com. I'll now turn the call over to Great Panther's President and CEO, James Bannantine.

[James M. Bannantine, President, CEO & Non]

Thank you, Alex. Good morning, everyone. On our call today, I'll start with highlights of the first quarter, then follow with an overview of our operational and financial results, discuss our outlook for 2019 and conclude with the question-and-answer session. The highlight of the first quarter was us closing the acquisition of Beadell Resources Limited. This acquisition has transformed Great Panther into an intermediate precious metals producer focused on leading mining jurisdictions across Latin America. Our portfolio is well diversified in terms of asset sites with reproducing mines and advanced-stage growth project and significant exploration potential. As announced on Tuesday, this past week, we've now commissioned the supplemental oxygen system at Tucano, which is performing well. Through to the middle of May, the Tucano plant processed an average of 1.75 grams per tonne of gold with gold recoveries at 94.5%. By comparison, April and the first quarter was limited to processing material at just under 1 gram per tonne and recoveries were down at 88%. We expect Tucano to produce between 125,000 and 135,000 ounces of gold effective March 5 onwards to the end of 2019. At Coricancha, we are in the final processing stage of our Bulk Sample Program, or BSP, and expect to announce results and the restart decision in late June. At Topia, in Mexico, we're advancing the process plant expansion project. During the first quarter, we announced an increase of resource estimate, which increased measured and indicated resources by 28%. Production also increased 16% compared to the same quarter in 2018. With the acquisition of Tucano, gold is now our primary metal produced by value. For the quarter, consolidated gold equivalent ounce production was up by 7%. Our updated consolidated production guidance for 2019 to account for the acquisition of Tucano on March 5, 2019, is 171,500 ounces to 185,000 gold equivalent ounces. Based on our 2019 guidance, we expect gold production to account for approximately 83% of our metal production by value. At Tucano, our reported production of 14,860 gold equivalent ounces for the first quarter only includes Tucano gold production from March 5, the date of acquisition. For the 26-day period, Tucano produced 5,164 ounces. Production at Tucano has been limited to processing lower-grade oxide material due to the lack of sufficient oxygen as we continued to turn around the operation. With limited grade of oxides under 1 gram per tonne, this lowered our production and raised our all-in sustaining cost for the first quarter and for the year-to-date versus what we expect the rest of the year and for future years. However, as announced earlier this week, the supplemental oxygen system was commissioned by the end of April, and we have been able to process higher-grade sulfide ore with excellent recoveries upwards of 94% since the beginning of May. I previously noted that in the first half of May, Tucano produced an average grade of 1.75 grams per tonne and we've successfully run the plant with grades over 2 grams per tonne at those same recoveries. With the implementation of the supplemental oxygen, the final phase of the Tucano plant optimization is now complete, and the mine can be operated in a manner that maximizes grade. Through a continuous improvement program going forward and having looked at the operation in detail since taking ownership, we believe there is opportunity to significantly reduce all-in sustaining cost further over the midterm. Tucano's production guidance for 2019 from March 5 onwards is between 125,000 to 135,000 gold ounces. It's worth noting the significant seasonal trend of the production at Tucano with a rainy and a dry season, with 70% of the year's production guidance planned for the last 2 quarters of the remaining 3 quarters. This also includes a very low month for the month of April. Moving on to Peru. At our Coricancha project, we've completed the mining phase of our Bulk Sample Program and have moved on to processing phase. We just recently started the process of approximately 4,200 tonnes of stockpile material generated during the mining phase. We successfully completed trucking the mine material to the plant via surface roads to avoid a blocked main ore pass to the plant, and as previously mentioned are now processing that material. We expect to announce the result of the processing, the completion of the Bulk Sample Program and be in a position to make a decision on a restart at Coricancha in late June of this year. Moving on to Mexico. Although the company's primary metal produced by value is now gold, as a result of the acquisition of Tucano, we'll continue to use and report cost metrics per payable silver ounce to manage and evaluate operating performance at our Mexican operations. Metal production at Topia and Durango was over 420,000 silver equivalent ounces for the quarter, which represent a 16% increase over the first quarter of the previous year. The increase was attributed to higher throughput, improvement in average gold and zinc grades and in silver and zinc recoveries. As we have previously announced, we are only sourcing production in Guanajuato from the San Ignacio mine. This is enabling us to focus on an exploration program for the Guanajuato mine aimed at identifying high-margin mineral resources to feed the plant in the future. Metal production from the Guanajuato Mine Complex was approximately 355,000 ounces of silver equivalent ounces for the first quarter. This is down from 750,000 equivalent ounces produced last year in the same quarter as we are only sourcing from San Ignacio. In addition, average silver and gold grades were also lower in the first quarter of 2018 -- excuse me, lower than in the first quarter of 2018 due to variability of mineral resource. Recoveries were also lower than planned and were a function of the lower ore grades as well as the change in processing to only process San Ignacio ore. It should be noted that grades and recoveries have improved since late in the first quarter and the company's operations and geology team are focused on optimizing and improving San Ignacio mineral supply while we explore at Guanajuato. I'll now hand the call over to Jim Zadra to discuss our financial summary for the first quarter.

[Jim A. Zadra, CFO & Corporate Secretary]

Thanks, Jim, and welcome, everyone. For the first quarter of 2019, we reported net loss of $0.05 per share. Although we reported mine operating earnings of $2.5 million, these were about $0.015 per share lower than those of Q1 2018 due to noted operating factors at GMC and Tucano. Tucano also accounted for about a $0.015 in noncash foreign exchange translation losses in the quarter since the acquisition date due to the depreciation of the Brazilian real. As noted, Tucano's operations improved with the successful commissioning of the supplemental oxygen completed in late April. And these improvements are expected to positively impact financial results, particularly in the second half of the year with a benefit of the dry season. We've also seen improved results from our GMC operations since the start of the second quarter. In connection with the acquisition, we incurred about $2.6 million or again a $0.015 per share in nonrecurring acquisition costs. Our G&A also reflected added head office overhead and G&A from the acquisition of Beadell. We are actively working on a program of winding down the former head office to realize cost synergies and expect the process to be substantially completed by Q3. Jim previously discussed our progress for the Coricancha Bulk Sample program. We are continuing to expense all of the costs associated with the project. And these, along with G&A and care and maintenance costs, amounted to about $1.6 million of expenditures in Q1 or about $0.01 a share. For Q1, consolidated cash cost was $793 per gold ounce and all-in sustaining cost, excluding corporate G&A, was $1,422 per gold ounce, reflecting the aforementioned operating factors, which affected both Tucano and GMC. Tucano's AISC was also affected by higher stripping sequence in March. And with the noted improvements in Tucano's processing and higher productivity in the second half, AISC is expected to trend towards guidance of $1,030 to $1,130 per payable gold ounce excluding corporate G&A. We ended the first quarter with cash and cash equivalents of $41.4 million. Following the end of the quarter, we repurchased the Beadell convertible debentures in the amount of $10.5 million and made about $4.3 million in scheduled repayments to MACA Limited, Beadell's largest creditor. In addition, MACA also converted approximately $3.5 million of debt to equity under the terms of their loan agreement and has a right to convert a further AUD 5 million in the current quarter and another AUD 5 million in the third quarter. We also funded approximately $11 million in working capital for Tucano to manage through the commissioning of the new supplemental oxygen plant. With the improvements in our operations since the end of Q1, we're seeing positive cash generation, but despite that we may seek opportunities to refinance from the recent debt repayments in order to have more working capital and to fund the Coricancha to restart should the results of the BSP result support a positive decision. I'll now turn the call back to our President and CEO, Jim Bannantine.

[James M. Bannantine, President, CEO & Non]

Thank you, Jim. As mentioned previously, we're pleased to provide production guidance for Brazil and Mexico. Please note that the Brazilian production guidance is effective from March 5, 2019, the acquisition date. For Brazil, we expect gold production of between 125,000 to 135,000 ounces. For Mexico, our guidance remains the same, but quoted and gold equivalent works out to 46,500 to 50,000 ounces with an 81:1 -- excuse me, with an 80:1 silver to gold ratio. Total consolidated guidance is expected within the range of 171,500 to 185,000 ounces gold equivalent. Cash costs are expected to be between $820 and $890 per gold ounce sold with all-in sustaining cost, excluding corporate G&A, of $1,030 to $1,130 per gold ounce sold. With that, I'd like to open the call for questions. Operator?

[Operator]

[Operator Instructions]Our first question comes from Heiko Ihle of H.C. Wainwright.

[Heiko Felix Ihle]

I have a conceptual question, a financial question and then a dumb clarification that you can hopefully help me with. Conceptually, with Beadell, can you just sort of provide a more detailed road map of what you expected to see throughout your first 6 months of ownership versus what you've actually encountered? And then also just sort of the factors that you think may sway results one way or the other throughout the next few months, call it by, throughout the end of the year?

[James M. Bannantine, President, CEO & Non]

Sure, Heiko. So we are now the owners of Beadell for 2 months since March 5. We -- the primary drivers at Beadell is a cyclical or Tucano we should be using Tucano as the name going forward, it's the Tucano mine of Great Panther. Is the cyclical rainy season, dry season production profile with a well more than half of production and the half of the year of the dry season. That's because you have to be -- you can only be in the -- low in the pit during the dry season, so there's a lot of stripping at the top of the pit in the rainy season and a lot of harvesting of gold and the dry season at the bottom of the pit with the lower strip ratio. So we're seeing that as expected. As we've talked about on our call, at the time of the acquisition, the insufficient supply of oxygen was not as expected. That is now -- that's now solved. So we should be back on plan, which is outlined in our guidance. The guidance does show a heavy production in the third and the fourth quarter, particularly in the fourth quarter, but you can see a quarter-by-quarter production guidance and that's pretty much -- that's the key -- I think that's the key metric to look at for the rest of the year. Obviously, as we produce a lot more with cost relatively fixed, our all-in sustaining cost goes down quite a bit.

[Heiko Felix Ihle]

This may turn more into a Jim Z question, but going through your inventories, in Exhibit 6A of your financials, your inventories went up almost tenfold on a year-over-year basis to $44.5 million. No surprise, obviously, you bought Tucano. Beadell in my notes, but I changed it to Tucano as per your request. My question really evolves around how much of that do you anticipate being able to decrease a bit with increasing efficiencies? I mean, some of this is essentially cash equivalents, especially the $6 million of gold bullion that appears to be just sitting around?

[James M. Bannantine, President, CEO & Non]

Yes, and a good part of it is also stockpiled and with the -- I can't talk specific numbers, but with the commissioning of the oxygen plant, it's going to reduce the need to stockpile or it's going to effectively enable processing of run a mine ore whereas previously Tucano was limited in processing the higher grade. So that should bring down the inventory levels going forward.

[Heiko Felix Ihle]

You want to take a swing at quantifying that?

[Jim A. Zadra, CFO & Corporate Secretary]

Heiko, you can see that during the first quarter, we processed an average grade of 0.95 grams per tonne. The average grade on the mine -- life of mine is 1.7 grams per tonne. We were stockpiling high-grade sulfides waiting for the oxygen to get there during the majority of the quarter and through the month of April. So that adds up to a lot of gold in stockpile. It's a big -- that's a big part of that number.

[Heiko Felix Ihle]

Okay. And then just sort of going through your MD&A, actually it might have been from the financial statements, I'm not sure, but just to clarify, in your financials you list a bank overdraft of $770,000 or $3 million reals. It states that the account is already fully drawn annualizing the 1.1% per month, interest rate you are paying 18.2% per year. Am I missing something? And I understand that the real has been devaluing or should that just be paid back as soon as possible, maybe with some of these inventories that get turned into cash?

[Jim A. Zadra, CFO & Corporate Secretary]

That's just a working capital item, Heiko. It just happened to be that, that account and overdraft, was an overdraft. It's not a -- it's not one of the Tucano facilities, if you will. So that was just...

[Heiko Felix Ihle]

Well, it sounds like it got maxed out, no?

[Jim A. Zadra, CFO & Corporate Secretary]

Correct, but it was just sort of a transition matter at the end of the quarter.

[Heiko Felix Ihle]

So that should be gone by the end of Q2?

[Jim A. Zadra, CFO & Corporate Secretary]

Correct.

[Operator]

Our next question comes from Mark Reichman of NOBLE Capital Markets.

[Mark La France Reichman, Senior Natural Resource Analyst]

I just have 2 questions. The first would be for Jim. It seems that you've already identified an abundance of opportunity to capture margin growth in subsequent quarters, but just focusing at the mine level beyond the addition of the supplemental oxygen plant in May, what other opportunities are there to improve performance at Tucano that might involve the mill, workforce issues or other. Perhaps you could reconcile the first quarter AISC of $1,422 per ounce to the full year guidance range and based on the much higher level of production in Q4, where would you expect AISC to land in the fourth quarter?

[James M. Bannantine, President, CEO & Non]

Thanks, Mark. I would say there's 2 -- it's kind of a 2-step function. The first step in the function is obviously getting the supplemental oxygen there and processing much more normal grades for the mine, which not only bring you more production and lower unit cost with more production, but lower cyanide consumption. We -- and during the first quarter, in the month of April, there was marginal grade material put through that would not have been put through were it not for the lack of oxygen, it would not have not been in the -- it would have been way at the end of the mine plan. So the first step in the function is just a recovery from those first 4 months of not having the oxygen, which dramatically lowers the AISC. The second element in the function is a longer-term element, I say -- I quoted it is midterm, which is cost reductions across the major cost elements of the mine. So right now, we are using 9 megawatts out of 15 megawatts off the grid power. That means 6 megawatts of diesel fire power, big number. We are -- we have been, for lack of oxygen, consuming a lot of cyanide. Obviously, getting the supplemental oxygen there not only helps on gold recoveries, but it decreases cyanide consumption. We've got many, many supplier vendor contracts that once we have a, if you want to call it, a financially strong owner, we should be able to release say -- realize savings on those contracts. There are multiple small, what I would call processing projects that we think have potential pebble crusher, a potential gravity gold element in the circuit. There's a long list of opportunities there. They're not going to be overnight. So the overnight function is the oxygen being there. The over time what we call continuous improvement opportunities are the -- are this -- are the latter set.

[Mark La France Reichman, Senior Natural Resource Analyst]

Okay. And the second question would be for Jim and that is just to address his high-level view of Great Panther's liquidity this year given planned capital expenditures and wanted to know if there might be ways to tweak the balance sheet? I think he mentioned refinancing opportunities to enhance financial flexibility and/or enhance borrowing costs.

[Jim A. Zadra, CFO & Corporate Secretary]

Right. Thanks, Mark. Well, the debt levels have been brought down quite significantly since the end of Q1. We've -- as we mentioned, we've repaid about $10 million in convertible debentures. We've also paid down $5 million of market debt and market also converted about $3.5 million of debt to equity. So that's improved the balance sheet quite significantly. And as we also noted, with the improvement in processing at Tucano, that's having a very positive effect on working capital, whereas obviously working capital draw in March and April as a result of the lower levels of -- processing of lower grade ore while we're continuing to strip to plan. That said, we do have plans for Coricancha should we make a positive decision to restart and that will -- we'll only go ahead with that on the basis of having adequate capital, whether that's our own capital or external capital. So that's one lever we have to manage the capital needs. And if we find financing on appropriate terms, we will go forward with strengthening the balance sheet.

[James M. Bannantine, President, CEO & Non]

Also, our operating mode is we want to have a healthy cash account -- a healthy cash in the bank, so with the very short-term amortization of big chunks of the ex-Beadell debt. If there is an opportunity out there, I would expect we'll take advantage of it.

[Operator]

Our next question comes from Jake Sekelsky of Roth Capital Partners.

[Jacob G. Sekelsky, Director & Research Analyst]

Hey guys, just a few ones from my end. It looks like grades have picked up quite nicely at Tucano obviously with the commissioning of the supplemental oxygen system. And I'm just curious if this is a grade profile you feel comfortable with going forward? And how it compares to what you expect to see over the remainder of the year?

[James M. Bannantine, President, CEO & Non]

So the grade that we're seeing now is a very good grade. It's a result of the high-grade stockpiles that we accumulated during the wait for oxygen. But yes, the life of mine average grade is around 1.7 grams on the mine, and so we're looking at 1.5 grams to 2 grams going forward of what we process.

[Jacob G. Sekelsky, Director & Research Analyst]

Okay. So you're right there. And I'm looking at the CapEx table in the MD&A. And would you just be able to provide some color around those numbers? I mean, my gut feeling is the vast majority is earmarked for Tucano, but I'm just trying to get a handle on the breakdown mainly between Mexico and Brazil?

[Jim A. Zadra, CFO & Corporate Secretary]

Sure, Heiko -- sorry, Jake. If you look at the sustaining capital, it's probably split 50-50 between Brazil and Mexico. The stripping obviously that's all attributed to Brazil and Tucano. And the sustaining exploration and development, that's primarily Mexico. Of the non-sustaining, the $3 million to $3.6 million, that's the Topia plant expansion, so that's Mexico. And of the non-sustaining, it's -- of the other non-sustaining piece, it's split between Coricancha and Tucano, and Tucano is primarily exploration drilling and Coricancha is obviously the Coricancha project should we make the decision, but that is also subject to financing. So we've added that in there to be conservative, but again it depends on our decision at the end of June and it depends on our capital.

[James M. Bannantine, President, CEO & Non]

The enterprise -- a project type financing for Coricancha, if we -- to move that forward quickly. I guess I would also emphasis as a derivative of your question, Jake, that of the non-sustaining EE&D at Tucano, you've -- if you've heard me speak before, you know exploration is a big part of the Tucano story, both to what we call infill and near mine step-out drilling to begin with and then regional exploration drilling across a large land package in sequence to that. So we are -- we have started and we intend to execute on a relatively aggressive exploration program at Tucano.

[Jacob G. Sekelsky, Director & Research Analyst]

Okay. That was exactly what I was looking for. It's very helpful. And then just lastly, a more conceptual question as it relates to Coricancha. Is it fair to say that Tucano in Mexico take capital allocation precedent over Peru with where we stand today? I'm just trying to get a handle on how you are prioritizing the 3 segments with Mexico, Brazil and Peru?

[James M. Bannantine, President, CEO & Non]

That's actually -- that's absolutely the case. It's one project at a time. Tucano is first in line, really Topia is kind of in parallel/second and Coricancha is third to make sure that we keep a strong balance sheet.

[Operator]

Our next question comes from Craig Stanley of Eight Capital.

[Craig Philip Stanley, Principal & Precious Metals Analyst]

Throughput for the rest of the year at Tucano, do you see it changing that much? Throughput through the mill?

[James M. Bannantine, President, CEO & Non]

No. I think we're pretty much on track there, Craig. You may have noticed in one of our releases that we were working on a maintenance issue on the SAG mill. That seems to be in order. We also have -- we didn't go into that. We've got a primary crusher replacement at Tucano in our CapEx there. We inherited a pretty worn-out primary crusher. But we can do that with a limited -- we think we can do that with limited production eruption. So we are still looking at the roughly 300,000 tonnes a month through the plant. Right now, as you can -- you saw in our May to-date press release from Tuesday, we were producing a little less than that as we commissioned this supplemental oxygen plant and as we tweak the SAG, but where our guidance and our budget is based on that 300,000 tonnes a month level.

[Craig Philip Stanley, Principal & Precious Metals Analyst]

Okay. And then the new contractor, you were saying in the presentation they're actually delivering right now above plan in 2019. Can you quantify that, is it like 5% above plan, 10%?

[James M. Bannantine, President, CEO & Non]

Yes. So it's on that order of 10%. We actually -- if you remember that the rainy season, dry season cyclicality of Tucano, we've got -- during the rainy reason, we move about 2.5 tonnes a month and during the dry season, we move about 3.5 tonnes a month. So we actually turned them up a little bit in the rainy season and they were able to accomplish that with no problem. They've got the capacity and the ability to move the larger amount in the dry season. So we expect to be on budget for that.

[Operator]

[Operator Instructions] Our next question comes from Bhakti Pavani of Alliance Global Partners.

[Bhakti Pavani, Senior Research Analyst]

Just a couple from my side. You did talk about conducting a significant exploration program at Tucano. Would you mind providing some additional details as to what size are you guys looking at currently and what's the budgeted spend?

[James M. Bannantine, President, CEO & Non]

So if you look at our corporate presentation, you look at the maps around that, you can see the infill and the near mine targets that we're shooting at. And that's roughly -- of that non-sustaining EE&D, it's roughly half of that.

[Bhakti Pavani, Senior Research Analyst]

Okay. And I know there have been multiple questions asked about production, but just kind of curious given the production guidance range, what factors at this point could lead the production to the highest guidance range versus the lowest?

[James M. Bannantine, President, CEO & Non]

There is obviously a lot of operating factors that can move you up or down, but if you look at the nature of our mines, the Mexican mines and the Brazilian mines have been running as they are pretty steadily. So there was not like we're bringing a new project into operation. We are expanding Topia, so the Topia mine or the Topia plant expansion comes in the second half of the year. So we have to execute on that. Tucano having the oxygen plant kind of pretty much secures that. There is not a lot of moving parts on Tucano. So I don't expect any huge variances around that.

[Bhakti Pavani, Senior Research Analyst]

Okay. And lastly, at Coricancha, with the Bulk Sampling Program, could you maybe, I'm not sure, if you would be willing to, but I was wondering if you could provide some details on the grade there? And do you expect to generate any revenue from processing the stockpile?

[James M. Bannantine, President, CEO & Non]

Not meaningful revenue, Bhakti. The -- if you remember from our studies and our publications, the head grade at Coricancha at the mine is 770 grams per tonne silver equivalent. Our objective has been to limit dilution from the mine to the plant to 40%. So we want to deliver at least 60% of that head grade to feed grade of the plant. Our -- the results of our work today look like -- look very positive to being able to achieve that. We'll publish that in the next month. The actual results of the mine grade, the plant grade and then take a decision on restarting it. Once we've taken that decision, the actual restart date will be a function of financing.

[Operator]

Our next question is a follow-up from Mark Reichman of NOBLE Capital Markets.

[Mark La France Reichman, Senior Natural Resource Analyst]

Just a quick question on priorities. I totally agree with the priorities you've set. I mean, I think there's a lot of value in Coricancha, but it was much more important prior to your acquisition of Beadell, so that kind of leads me to think about Guanajuato and the money you're spending there on exploration. At what point do you decide either to continue spending money on exploration at Guanajuato or move all of your chips over to Tucano?

[James M. Bannantine, President, CEO & Non]

That's -- very good question, Mark. So Guanajuato and the results of the Guanajuato Mining Complex, you can see, suffered a bit from the lack of feed from Guanajuato. So San Ignacio is providing 2/3 of the feed -- historically, has provided 2/3 of the feed to the Guanajuato plant. It's a bit subscale without Guanajuato. We look at each Coricancha, Mexico and Tucano as business units. So that business unit at Guanajuato would benefit greatly from extra resources that can turn that mine back on into a source of feed. And then given that, each business unit has its own intrinsic value. We'd like to get that business unit up to full value and then keep an eye on it. It is run by the leader of the business unit, which is Brian Peer, our VP of Operations. So it doesn't really -- I mean our focus -- with all honesty, our focus is on Tucano. And it's -- the Guanajuato exploration is not a big -- it's not a big dollar number and it's not a management distractor. So letting that run for the next few months and see how we do is I think, is prudent. But our big -- if you look at the company as a collection of our portfolio of business units, you've got Mexico, you've got Peru, you've got Tucano and you really have exploration as almost another business unit and that mainly is Tucano exploration. The value of exploration at Tucano is so significant that they were looking at that like a fourth business unit and it will be the focus of exploration.

[Operator]

This concludes the question-and-answer session. I would like to turn the conference back over to James Bannantine for closing remarks.

[James M. Bannantine, President, CEO & Non]

Thank you, Arielle. And in closing, I'd just like to say that we are really excited about executing on our strategy. For those of you who've followed Great Panther for the last few years, we're executing on the strategy that we announced a couple of years ago and the acquisition of Tucano. We are also very excited about the integration of our Brazilian operation, our Brazilian team into the Great Panther mining team. A lot of really bright people there. We also believe we are able to leverage some of our skills at Great Panther on to the Tucano asset and get the full value out of that. We also are very optimistic on Coricancha and look forward to updating that over the next month or so. I believe that with the team that we have and our asset base and our balance sheet, we're really well positioned to grow the company and add shareholder value through the rest of this year and then hopefully in further growth going forward in future years. Thank you for your participation in the first call of Great Panther Mining. And on behalf of everyone here at Great Panther, I look forward to sharing our progress with you in the next quarter and going forward. Thank you, Arielle.

[Operator]

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.