Sierra Metals Inc

TSX:SMT

Earnings Call Transcript

[Operator]

Hello, everyone, and welcome to the Sierra Metals Fourth Quarter and Year-End 2022 Consolidated Financial Results Call. My name is Daisy, and I'll be coordinating your call today.

[Operator Instructions]

I would now like to hand the call over to your host, Christina Papadopoulos, Manager of Investor Relations, to begin. So Christina, please go ahead.

[Christina Papadopoulos, executive]

Thank you, operator, and good morning, everyone. Welcome to Sierra Metals Fourth Quarter 2022 and Year-End 2022 Consolidated Financial Results Conference Call. On today's call is Oscar Cabrera, Chair of the Board of Directors; Ernesto Balarezo Valdéz, our Interim CEO; and Jose Fernandez-Baca, our interim CFO.

Following the prepared remarks, a question-and-answer period will follow. The accompanying presentation for today's call is available for download through the webcast or from the company's webcast at sierrametals.com. Yesterday's press release, the financial statements and the management discussion and analysis are also posted on our site and on SEDAR.

I'd like to note that this earnings call contains forward-looking information that is based on the company's current expectations, estimates and beliefs. This forward-looking information is subject to a number of risks, uncertainties and other factors. Actual results could differ materially from our conclusions, forecasts or projections as reflected in the forward-looking information.

Additionally, information about the material factors that could cause or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in the company's annual information form, which is publicly available on SEDAR and on the company's website.

Please note that all dollar amounts mentioned on today's call are in U.S. dollars unless otherwise noted. Now I'd like to hand the call over to Oscar.

[Oscar Cabrera, executive]

Thank you, Christina, and good morning, everyone. Thank you for joining us this morning. My comments today will be brief as I will leave it to Ernesto and Jose to review the company's results and outlook. As Board Chair and a member of the Special Committee of Independent Directors that is undertaking a strategic review, I would like to provide an update on that process.

The Special Committee continues to evaluate certain strategic alternatives. The company will report to shareholders at the conclusion of the strategic review process. Therefore, on today's call, other than the following remarks, we will not be commenting further or taking questions on the Special Committee's work.

I would like to remind our shareholders of the mandate that the Special Committee took on last call based on the challenges the company faced at the time. We're responsible for exploring, reviewing and considering options to optimize the operations of the company and possible financing, restructuring and strategic options in the best interest of the company.

Consistent with that mandate, the members of the Special Committee have provided recommendations where appropriate and supported the management team to identify opportunities to improve operational and financial performance. In that respect, the efforts of the Special Committee have made an impact ahead of the completion of the strategic review process.

Much of what you'll hear from Ernesto and Jose today will be a summary of initiatives they have identified and begun to implement. I believe the efforts of the entire Sierra Metals team have already and will continue to make a significant difference in the company's operational performance and growth outlook.

The Board has confidence that the company is on the right track. I would now like to turn the call over to Ernesto.

[Ernesto Balarezo Valdéz, executive]

Thank you, Oscar. Good morning, everyone. It is my pleasure to be part of my first earnings call with Sierra Metals as interim CEO. As many of you know, I joined the company in late November 2022. It has been a very busy time since I have joined and I wanted to make a few comments before I provide an overview of our operating results.

First, I am pleased to report that I have joined a company with a dedicated and hard-working team of professionals across the organization. the challenges the company faced in 2022 are well documented. In spite of those, our team has remained focused on the task at hand and has embraced the initiatives we have put in place during my first 100 days on the job.

Most notably, the entire company has embraced our renewed focus on safety. For me, safety is the top priority. As we say in the business, a safe mine is an operating mine. And I truly believe one of my top priorities as CEO is to ensure we provide a workplace environment where all employees and contractors are safe, and able to return home safely after a day's were.

Later in the presentation, I will return to discuss more specifics about the plant improvement. But first, let me provide an overview of our results. Consolidated 2022 ore throughput was 2.3 million tonnes, a decrease of 21% from 2021, mainly driven by the 30% and 16% decline in the annual throughput from the Bolivar and Yauricocha Mines, respectively. As a result, consolidated 2022 copper equivalent production decreased 29% compared to 2021. Consolidated fourth quarter 2022 ore throughput of 0.5 million tonnes, a sequential decrease of 12% from Q3 2022, mainly due to the decline in throughput at Yauricocha.

As a result, consolidated Q4 2022 copper equivalent production decreased 15% compared to Q3 2022. At Yauricocha, our flagship mine in Peru, throughput was severely impacted in Q4 2022 by the mudslide incident that occurred in September, followed by a road blockade by the local communities.

As compared to Q4 of 2021, the Yauricocha throughput was 40% lower, while on a year-over-year basis, throughput was 16% lower as compared to 2021. At the Bolivar Mine, throughput increased 19% in the fourth quarter over the third quarter, and that momentum has carried over into the first quarter of 2023.

However, the annual throughput at the Bolivar Mine was 30% lower as the improvements in Q4 2022 production could not make up for the delays in installation of critical infrastructure during the first half of the year and unexpected flooding during Q3 2022. Also during the fourth quarter, recovery rates and copper, silver and gold grades were substantially higher, all of which we are encouraged by.

Clearly, there were many challenges at Bolivar last year. However, the critical infrastructure bottlenecks have been resolved and, most notably, this has included the installation of pumping and ventilation systems. With these issues addressed, we are seeing indications of improved performance year-to-date at Bolivar.

We will look to build on this momentum for the remainder of 2023. At our Cusi Mine in Mexico, we processed 11% more ore in Q4 than in Q3 as mining resumed in the area where flooding occurred earlier in the year. The increased throughput helped offset the impact of lower grades and a lower silver and gold recovery rate during the quarter.

Annual throughput at Cusi Mine in 2022 was 292,000 tonnes or 1% lower than 2021. In addition to higher silver grades, crushing and grinding improvements at the plant have helped enhance silver and gold recovery, resulting in an 8% increase in silver equivalent production when compared to 2021.

As noted in our earnings release, we have made a strategic decision with input from our Board of Directors to classify Cusi as a non-core asset. To that end, we will continue to operate Cusi while we explore strategic alternatives. Despite the challenges the company faced in 2022, I'm encouraged by the recent progress we have made.

We have seen improved performance carry over into the start of 2023. I will discuss our outlook in greater detail in a moment. First, I will pass the call to Jose, our CFO.

[Jose Fernandez-Baca, executive]

Thank you, Ernesto. I will not be going into details as I assume everyone has read our fourth quarter and year-end 2022 financial results released last night. Instead, I will offer these highlights. Revenue from metals payable was $192 million in 2022, a decrease of 29% from 2021 annual revenue of $272 million.

Lower revenue resulted from the decrease in throughput in grades at the Yauricocha and Bolivar mine. Due to the previously mentioned operating challenges experienced in 2022, cash costs across all of our mines were higher in 2022 when compared to 2021.

Yauricocha and Bolivar cash costs on a corporate equivalent basis were 53% and [ 37% ] higher, respectively. And Cusi, silver equivalent cash costs were flat year-over-year. Adjusted EBITDA of $13 million for 2022 was a decrease from the adjusted EBITDA of $104.7 million of 2021.

The decrease was primarily due to the interruptions in operations at the Yauricocha and Bolivar. Net loss attributable to shareholders for 2022 was $87.5 million or $0.53 per share compared to 2021 net loss of $27.4 million or $0.17 per share. Net loss for full year 2022 includes a non-cash impairment charges totaling $50 million.

Adjusted net loss attributable to shareholders of $23.1 million or $0.14 per share for 2022 compared to the adjusted net income of $21.7 million or $0.13 per share for 2021. Cash flow generated from operations before movements in working capital of $5.2 million for 2022 was lower than the $91.1 million in 2021, mainly due to lower revenues and higher operating costs.

And -- as at December 31, 2022, cash and cash equivalents was $5.1 million and working capital was negative $84.4 million, primarily due to the $82.8 million reclassification of long-term debt to current. Subsequent to year-end, we were pleased to announce that we are in advanced discussions on terms to refinance $18.75 million of the $25 million principal debt repayment obligations that are due in 2023 under the company's senior secured credit facility.

We intend to formalize this refinancing prior to the due date of the second quarterly principal installment on June 8, 2023, subject to, among other things, the completion of our due diligence.

Lenders have provided an interim refinancing of $6.25 million first quarter '23 amortization payment due on March 8, 2023. While the refinancing contract for most of the balance of 2023 payment is being finalized.

We have also advanced discussions with the other secured lenders on refinancing of material short-term obligation and the steps to improve short-term liquidity through ancillary financing arrangements. So more to come on achieving balance sheet release. Go back to you, Ernesto.

[Ernesto Balarezo Valdéz, executive]

Thank you, Jose. As many of you know, I came onboard in November. My priorities were to improve the operations. Nothing has been left unturned. Our focus was to first stabilize and now optimize our operations. The first phase of stabilizing the operations is complete. We are now moving ahead with a strong platform to increase production and lower costs.

Some initiatives implemented in my first 100 days on the job include: Placing a renewed emphasis on safety and employee engagement, the company has hired a Vice President of Health and Safety instituted new safety protocols across all of its operations, increased training and communication efforts and invested in remote control equipment which is designed to reduce risk of injury to personnel.

Safety is our top priority. And I'm committed to doing all I can with the support of our management team to provide the safest possible working environment for all of our employees and contractors.

Enhancements to internal financial forecasting, reporting and integration of information across functions to drive improved decision making.

Initiatives to increase productivity and thereby reduce costs at the mines, including increasing asset utilization, focused underground development of mine sequencing and improvements to ventilation and pumping systems in Bolivar.

We have initiated activities designed to identify additional mineral resources at the Yauricocha and Bolivar mines and sustained long-term production increases. And we have made organizational changes designed to be the shift in the corporate culture and instill a more hands-on approach to operations. This starts at the top. Senior management now spend significantly more time at the mine sites, so we can all fully understand the challenges and opportunities.

A key metric is our daily throughput rates. Achieving our target generally indicates to me, our operations are improving and costs are coming down. While we are still early in our operational improvement plan, so far in 2023 at Bolivar, we are achieving 3,070 tonnes per day throughput, which is the same rate as in Q4 2022.

And we see opportunities for improvement in 2023. Meanwhile, at Yauricocha, we are achieving 2,375 tonnes per day, a 36% improvement over fourth quarter 2022 and already at 2023 targeted levels. As for the outlook in 2023, our operational improvements have now set the stage to increase production and lower costs.

Some of our key objectives were included in the guidance issued in our earnings release last night, and let me summarize some of them. We expect to see higher production in 2023 for copper, zinc, lead and gold than in 2022. On a cost basis, we expect to see significant improvements on both the cash cost and all-in sustaining cost basis at Yauricocha and Bolivar.

For capital expenditures, we are forecasting total sustaining CapEx of $32 million, with $10 million at Yauricocha, $22 million at Bolivar. The expenditures at Bolivar are primarily focused on enhancing the longer-term viability of the mine. Nearly half is for mine development. More than $5 million on infill drilling and nearly $4 million for improved equipment.

These investments are critical at Bolivar as we truly believe it is a deposit that has the potential over time to become a long-life, low-cost mine. Gross capital is $15 million with $11 million committed to Yauricocha where the focus is on the tailings dam and the shaft.

Much like Bolivar, Yauricocha requires investment and optimization. We also believe we need to focus significant efforts on obtaining permits in Peru to allow us to mine below the 11-20 level. Obtaining those permits is critical to helping us transform the Yauricocha into a long-life, low-cost mine as well.

On the basis of this guidance, we expect the company to generate significantly improved operational and financial performance for all stakeholders in 2023. As I stated earlier, one of my first objectives when I joined last year was to stabilize the operations.

Based on what I have seen to date on our guidance for 2023, I believe we have achieved that objective. Next, our focus is to optimize the operations. This must be done so we can return to higher levels of production on a sustainable basis that is both safe and economic.

Then our priority will be to position Sierra Metals for growth. And by this, I mean sustainable, predictable and reliable growth over the longer term. Fundamental to achieving this goal is expanding the resources at our core mines. Our key growth initiatives are centered around revising the life of mine plants at Yauricocha and Bolivar, which are expected to be completed in Q2 2023.

We believe both sides have the potential to sustain long-term profitable production. The company is also working closely with regulatory bodies to expedite the permitting process at Yauricocha without compromising safety and environmental regulations. While we focus on these key optimization initiatives and the strategic planning that is ongoing, we have deferred some of our growth-oriented capital expenditures.

Once this work is complete, we can revisit our growth capital needs. We firmly believe Bolivar and Yauricocha are cornerstone assets capable of underpinning Sierra Metals to be -- to the benefit of all our stakeholders. We have laid out the priorities we need to achieve in order to meet that objective.

There is much work to be done, but I'm convinced we have the right team in place to succeed. We have seen early signs of success and we believe there is some momentum in our business. Looking ahead, we expect to see improvements achieved throughout the year. With that, I'll hand the call back to the operator to start the Q&A session. Operator?

[Operator]

[Operator Instructions]

Our first question today comes from Mark Reichman from Noble Capital Markets.

[Mark La Reichman, analyst]

I just had a question. I missed the comment about both Bolivar and Yauricocha, at what rate on a tonnes per day basis would be operating in 2023? I heard the 2,375, I'm assuming that was Yauricocha. But I was just wondering if that's kind of -- if you could repeat those numbers and if that's what we could expect for the full year or whether there would be any ramp-up in those numbers throughout the course of the year?

[Ernesto Balarezo Valdéz, executive]

Yes. Thank you for the question. In -- what I said is in Bolivar, right now, we are achieving 3,070 tonnes per day. We are expecting to increase this throughput rate in the next months. At the end of the year, we should be close to 5,000 tonnes a day. In Yauricocha, 2,375 tonnes per day, and we are very much in line of what we have targeted for the year.

[Mark La Reichman, analyst]

Okay. And then in terms of the permit, what are your expectations at this point for receiving a permit to mine at depth at Yauricocha? And then once you get the permit, how long do you think it would take before you're actually start -- before you're actually mining in those deeper areas?

[Ernesto Balarezo Valdéz, executive]

Yes. Thanks for the question again. We are confident we're doing our best efforts to get that permit by year-end. So that's where we are working now. We have hired Manager of Permits for Sierra Metals. We didn't have that position in place. And they are working 24/7 to get this permit to our company. How long would it take us to start extracting mineral from that area? Probably 6 to 9 months before we can start extracting minerals after we get the permit, right?

[Operator]

Our next question is from Jim Young from Midwest Investments (sic) [ West Family Investments ]

[Jim Young, analyst]

Welcome to Sierra Metals. My question is that you mentioned that you completed Phase 1 and now you're moving on to where you want to increase production and lower costs.

Can you just quantify a little more specifically as to -- if you think about where will you be by the end of, say -- the end of September quarter, and December, and then beyond into 2024? So 5,000 tonnes a day at Bolivar, you just mentioned, is that basically the maximum capacity that you see in 2024? Or is that -- do you expect to continue to grow? And again, what -- and then can you also then provide us with your cost expectations per pound?

[Ernesto Balarezo Valdéz, executive]

Okay. Thanks for the question. Why are we reducing costs? It's because all these operational improvements on our sites. In Bolivar, we already have ventilation systems in place that allow us to mine more -- to take out more minerals from Bolivar. That will take our cost down. Pumping systems already in place that also facilitates the work of the miners.

So -- and in Yauricocha, the cost will come down because of higher production. But right now, we are mining small bodies above the 11-20 level. So the mining cost is not lower because we are going to produce more ounces -- more pounds, I'm sorry. Then cost will finally be lower.

But as a miner -- as a mine cost, it's going to go a little bit up, a little bit high. If we are going to be able to sustain for 2024 the production levels at Bolivar, that's what we are aiming to do. Bolivar needs to be developed. And that's what we are trying to accomplish this year.

Develop it a lot more -- a little bit more. Next year, keep developing the mine. I don't foresee an increase in production at Bolivar for 2024. I don't foresee an increase in production tonnage in Yauricocha in 2024 either unless -- well, maybe by the end of 2024 when we get this permit and we prepare the mine below the 11-20 level. I hope I answered your question.

[Jim Young, analyst]

So I guess -- But can you be a little more -- can you quantify, though, where you expect costs to be, say, by the end of 2023 at both Bolivar and Yauricocha?

[Ernesto Balarezo Valdéz, executive]

Cost per tonne in Bolivar. Let me look at my guidance. Cash costs in Yauricocha should be around $1.80 in those areas and in Bolivar, around $1.90, $2, cash costs, it compare copper equivalent pounds. Okay?

[Jim Young, analyst]

Okay. And then if you're able to achieve this guidance, do you think that you can fulfil that at Yauricocha? What does that suggest for the EBITDA and cash flow generation?

[Ernesto Balarezo Valdéz, executive]

Yes. It's hard for us to project. We don't give guidance on EBITDA. It all depends on metal prices. We are working towards getting a much better EBITDA number than last year. I think all these operational improvements, safety measures will result in better -- in much better EBITDA, but we don't provide guidance on that.

[Jim Young, analyst]

Okay. And then my last question really is have you yet -- it's been early, but have you yet chance to go out to visit any of the mines yet? And if not, is your plan to do so, please?

[Ernesto Balarezo Valdéz, executive]

If I have visited the mines, sorry?

[Jim Young, analyst]

Yes.

[Ernesto Balarezo Valdéz, executive]

Many times. One of my way of doing business and be a CEO of a mining company, is visiting the mines periodically. And not only myself, but with my example, my management team is also doing that. And this was the first major change that happened when I first got in.

[Operator]

Our next question is from Alberto Arias from Arias Resource Capital.

[J. Arias, analyst]

Yes. My question is regarding the improvements that you are mentioning are being delivered because what we're seeing here is a reduction on the guidance from what we had heard in prior calls, especially on the Yauricocha throughput. What you're saying here is that the production rates are going to be around 2,300 to 2,500 tonnes per day, which is remarkably low by historical standards at Yauricocha. It's hard for me to imagine the company being very profitable at those levels.

What has changed? In the third quarter conference call, they were telling us that by the second quarter of this year, Yauricocha was going to come back to normal throughputs. So could you explain to us what is the change from the previous call to now?

[Ernesto Balarezo Valdéz, executive]

Okay. Thank you for the question. I was not on that call, and I have read what they -- what previous management offered. What I'm offering now is steady production, profitable production. Below -- if we had access to the levels below 11-20, maybe the throughput could grow higher. Right now, we are mining small bodies above 11-20, less sublevel caving, more current field operations. This is the throughput that we can get out of Yauricocha in a safely economic way until we get the 11-20 permit. Then things have to change.

[J. Arias, analyst]

Great. I'm glad to hear that you're talking about profitability and cash flow generation because that's our biggest concern in terms of the runway the company has. If you're telling us that at those production rates, Yauricocha can generate cash flows and it would have the runway to go to -- when the permits are obtained, I would feel more comfortable.

But I'm glad to hear that's what you are saying here. On the permit side, it's mind boggling that there's been such a long time to obtain those permits. I was reading the annual report of Corona, which I was glad to read all the disclosure in there.

And you're talking about getting the permit by the end of this year. I'm surprised by your comment that the production rates would be same in 2024 given that there was almost a continuous mineralization from those levels to lower levels. Why 6 to 9 months to reactivate those zones?

[Ernesto Balarezo Valdéz, executive]

Good question. Because we need to prepare the mine. Below 11-20, it's sublevel caving. It's sublevel caving with a lot of water. We need to safely extract that mineral. For that, we need to prepare the mine. The mine is not ready below 11-20. We get the permit, it's not that we get in the next day, and we start mining and extracting mineral.

We need to prepare that site, that area of the deposit. That's why it takes a while to extract mineral from there. That's the main reason. If we want to do it in a safely manner, dewater in these stopes, we need to take a little bit of time to prepare it and to do a good job, especially with safety.

[J. Arias, analyst]

Yes. And the final question I have is on Bolivar. I'm glad to hear that you are ramping up, but we couldn't get the sense from the guidance that I see a significant increase in production on Bolivar.

Now that the quarter is almost over on the first quarter, you feel that we are going to sustain these growth rates that you are projecting on Bolivar? And Bolivar also had an iron ore project that -- there was even a technical report or preliminary feasibility started on the iron ore project.

The management was telling us that because of transoceanic shipping rates having gone up so much, that is less economic, so therefore, not so valuable. Transoceanic shipping rates have come down to pre-COVID levels and iron ore prices are remarkably strong. Is there any plan to reactivate that project?

[Ernesto Balarezo Valdéz, executive]

Thank you for the question again. Okay. The iron ore project -- for the iron ore project to work, we need a buyer of the iron ore. We don't have a buyer. We don't have the CapEx to install a plant for iron ore. So we would need not only a client but a client that is willing to invest in our site in order to get that iron ore out of our concentrate -- of our mineral, okay?

So we are looking for that buyer. We haven't found it yet. That's the second question, I think. The first question was on Bolivar, can you please repeat?

[J. Arias, analyst]

The throughputs. When I look at the production, you're talking about even going up to 5,000 tonnes per day, but is that in the guidance of copper production because I would imagine that if you go to 5,000 tonnes per day, the copper production of Bolivar would be higher than what you have guided in your press release.

[Ernesto Balarezo Valdéz, executive]

Yes, it's a ramp-up. What I said is that by the end of the year, we should be at 5,000 tonnes. So maybe you shouldn't multiply 5,000 by the remaining months of the year. It's a ramp-up. And I think it is sustainable for 2024, 2025, I do think so.

What Bolivar -- and I think you know Bolivar very well. Bolivar is underdeveloped. We need to develop that mine. We need to invest in making more fronts, more stopes, available to us. That is going to take a while in order for increase that ramp-up and that production level.

[Operator]

Our next question is a follow-up from Mark Reichman.

[Mark La Reichman, analyst]

Well, I have to say I've been impressed with the actions that you've taken to date. I guess the question I have at this point is you're dealing with a lot of different stakeholders. I mean, on the one hand, you're working with the banks to try to get some flexibility. You've been successful in getting waivers.

But I think your financial statement indicated that you'd probably have to seek more waivers in the future. Meanwhile, you've got this capital expenditure budget, a lot of investment needs at both Yauricocha and Bolivar. So how are you thinking about bridging the financial gap in terms of cash flow versus asset sales? Meaning QC versus stock sales are taking on additional debt.

[Ernesto Balarezo Valdéz, executive]

Thank you for the question. We need to keep stabilizing and operating our mines in a productive, efficient, safe manner. I really believe we can make a profit. I really believe these 2 mines can produce positive cash flows for the company. The banks want to help. The banks don't want to bankrupt us or anything. They do want to help.

And they are helping. I think they will be willing after we show the Q1 results and Q2 results, they'll be willing to refinance the whole debt I have started preliminary talks about that. So there's a lot of balls in the air right now, lot of fronts, as you say, but we are handling. We have a great team that is supporting me and the company. We are on site -- it's hard work, I can tell you, but we're making progress.

[Mark La Reichman, analyst]

Well, just as a kind of a follow-up to that question, you just alluded to that when they see the first quarter and the second quarter results, that was, like I said, I think the plan, what's impressive, I guess the execution will be the heavy lifting.

But in terms of the first quarter, did you solidify all this prior to the first quarter where -- I mean, will these efforts show up in the first quarter numbers? Or -- I mean, have you spent any of that capital expenditure funds at this point? Or when do you expect the real progress to start?

[Ernesto Balarezo Valdéz, executive]

Okay. We are already seeing the results of these actions in Q1 2023. And just to clarify on the CapEx number that you are seeing, that comes out of the company -- of the operations. We are not increasing our debt. We are not increasing our refinance everything comes out of the cash flow that both sites are producing.

[Operator]

[Operator Instructions] We have a follow-up question from Jim Young.

[Jim Young, analyst]

Yes, could you please address the process that's going to unfold, either the timing, the expectations for when we'll have a permanent CEO in place and a permanent CFO in place, please? Because I think it was very clear that you mentioned that you're an interim CEO and interim CFO.

[Ernesto Balarezo Valdéz, executive]

Yes. Thank you for the question. I'm going to pass that to our Chair, Oscar, please?

[Oscar Cabrera, executive]

Jim, good to hear from you. Listen, we did not believe it was appropriate to make decisions before the completion of the strategic review, and this is why the interim was put ahead of CEO, CFO. That being said, Ernesto, on paper was very qualified. And despite having the interims in their title, the Board selected them because we were -- and remain very confident that their ability to execute and make the decisive progress at this critical juncture, I think just -- all I can tell you is stay tuned, but we're very, very happy with their performance.

[Operator]

[Operator Instructions] We have no further questions. So I'd like to hand the call back over to Ernesto for any closing remarks.

[Ernesto Balarezo Valdéz, executive]

Thank you for taking the time to join us today. We appreciate your continued support. I'm just over 100 days in the CEO seat. I'm proud of what the team has accomplished. You can expect more from us, and we look forward to showing you our progress and earning your trust. Stay tuned. As always, please feel free to reach out should you have additional questions. Have a good day, everyone, and thank you again.