Barrick Gold Corporation
Q1 2017 Earnings Call Transcript

Published: 4 May 2017

[Operator:]

Ladies and gentlemen, welcome to Randgold's First Quarter Conference Call. Today's speaker will be Mr. Mark Bristow, Randgold's CEO. Sir, please go ahead.

[Mark Bristow:]

Thank you very much, and good afternoon ladies and gentlemen, both in the U.S. and across the pond here in U.K., and Europe, and see some callers in from South Africa as well. As you know, today, at lunchtime, we announced our or presented our quarter 1 results for 2017. And the objective of this call is to catch you up, do a brief update along the lines of what we presented at mid-day. But I would point out that the webcast is available on our Web site, the full transcript for lunchtime. I'll start with just with a little intro on the industry and the gold, and its recent performance. And one of the comments that I made today was, when you look at the current market there is certainly a recovery in it. But as an industry, we still seem to be hogtied by the damage to our valuations and businesses in the past sort of five-and-a-half to seven years. And there's this tentative move towards joint ventures and mergers, and an attempt to keep away from any robust decisions. And my concern is that this industry is becoming a coalition or running the risk of becoming a coalition, which would make us incapable of offering the market a range of clear-cut differentiated investment opportunities. Randgold, on the other hand, has a very distinctive business model, designed to create and deliver value to its stakeholders through its longstanding strategy and from a sustainably [ph] profitable platform. And when you look at this first quarter, it really does talk to all aspects of our strategy. And again, just to catch up, quarter 1 is always a busy quarter for us. And where we re-look at our five-year and 10-year plans, we have now those in a rolling plan program, and we also look particularly at our skills development and how that fits into our scenarios and our plans to ensure that we are well-equipped to continue to deliver. Question 1 was one of our better first quarters for some four to five years, this quarter, with operations delivering across the border, as I pointed out. And all aspects of our business are running to plan, and that doesn't often happen in the mining industry. And so we're very pleased with the outcome of all the results of the quarter. A quick catch-up, the next side is, that's slide two, is the safety, health, and environment slide, as you can see, how we reduced our totally injury frequency rate again, and made further progress on our drive to eradicate malaria in our communities and amongst our workforce. And we're also pleased to be able to demonstrate we are using water and power ever more efficiently. The fourth quarter of last year, as you'll recall, was a record one in every way. As we know, we had to pull up our socks and pull out all the stops to deliver on our guidance, which we did as per our plan we revised in mid-year of 2016. And so, I would argue that the quarter-on-quarter correlation is a little skewed, but the appropriate measure is to compare it with the comparative quarter one of last year. And by that measure, gold production profited total cash cost all improved. Every operation delivered on plan, as I pointed out, and our cash pile grew to past the $600 million mark. And just to put that in context, our shareholders did approve a 52% increase in annual dividend to $1.00, and we will be paying that out this month, and even after that we'll still be well north of $500 million with no debt. We also, as you would've seen recently, published reserves and resource segments which effectively underscore the fact that we had replaced our reserves at a higher grade. And I think that was critical. Another key component of our strategy is the quality of our assets. And our Brownfield's exploration teams continue to build the base, while the Greenfields is making good progress, and I'll touch on that as we go through the presentation. Numbers always tell the story, and we're showing a two-year comparison in this slide just to illustrate the continuing progress we've been making on all fronts, not only on a year-on-year basis, quarterly, but a [indiscernible] and the same trend is observable if you go back in the years. We turn now to operations, starting with our Loulo-Gounkoto flagship, which delivered another solid performance. This business continues to run at a steady state, and even the impact of a [technical difficulty] did not deflect it from hitting all its targets for the quarter. If you look at the operating results, these are the numbers. And if you look at the run rate there, well ahead of our guidance in both production and costs. And Loulo has really started very much like it started last year, and we're happy that it'll achieve its guidance of 690,000 ounces at total cash cost of $550 an ounce. Looking at Loulo on a standalone basis, it's clear that its underground mines are delivering in line with expectations. And despite its record production in 2016, its reserves actually increased by 13% net of depletion on the back of the work that we did in the extensions to the high-grade zones of [technical difficulty] into reserves. Changeover to owner mining; continues to deliver the goods, with a good all-round improvement in the development rate, and Gara, in particular, doing very well. Balancing its different ore types for the feed to the plant has always been a challenge for Loulo, and we're just showing how the improvement that we've had on the back of our initiative to integrate metallurgical and mineral resource management to ensure proactive recognition and accommodation of any variability's in the ore feed. This has lifted our recovery grade to plus-92%, which is excellent by any measure. And later on, I'll show you we've been applying this in Kibali too, and we really are starting to make progress there. Loulo results speak for themselves, as do the complex, pretty much a see-through set of results. And it's worth pointing out the low-cost profile of this business. In addition to the Brownfield's work at Helier North and Gara South, I mentioned earlier, the exploration team also advanced an exciting new target. We have not quite at the discovery level yet, but it's located to the north of Gara along the same corridor, and we currently have defined four kilometers. It's been quite a challenging program to look through some fairly think cover, but we're quite excited about this. And we've certainly got some early initial [technical difficulty] supporting mineralization, and more significantly where we intersect it or exposes on surface we're seeing very much a Gara-style [indiscernible]. Also, in the exploration agenda has been the Loulo 3 target, where we really are starting to delineate what could be an additional underground resource for the Loulo operations. And Loulo is moving into Loulo's sister operation at Gounkoto. It also produced a solid performance after overcoming last year's rate stripping ratio, and work now is progressing with the development of the Super Pit. And these are the numbers, again all in line, and again, underpinning a strong cost discipline and underlying results. Brownfield's work at Gounkoto has highlighted new extension in the form of the MZ4 Plunge [ph]. Initial drilling is being completed, and further work is planned to fully evaluate the deeper potential of this ore shoot. And now the Loulo district has already richly rewarded Randgold. It's really a significant series of world-class deposits, and complementary satellite deposits. And we're still very motivated to make additional discoveries believing in the continued prospectivity of this 70-plus kilometer strike of ore structure. Staying in Mali, but moving down to Morila, we saw increased gold production from the Morila tailings retreatment operation, and an improvement in efficiency, and very comforting, and again, as the third time that the industry has re-cut its cost base and being able to demonstrate its ability the mine ever lower feed grades. And it's encouraging to be able to say that Randgold is learning to manage very low-grade deposits as we do high-grade deposits. Again, the results show a return to profitability, and on the back of these efficiencies we are comfortable to get to our $900 guidance by the end of the year. And you will have seen that we have announced the community approval for the development of the Domba satellite. This could add as much as 30,000 ounces to this year's production, and bring the cost down to sort of mid-$700 range. And also, we have exercised our option to acquire Birimian's -- the next door Birimian's small Ntiola and Viper satellite deposits. And again, that has an opportunity to bank the profitability, and the ability for the mine to coast into a successful closure, and support the legacy initiatives that we've got post mining legacy [indiscernible]. Across now to Senegal, where we're in the process of completing the detailed drilling for the Massawa project bankable feasibility study, we're on track with that. You would've seen that the reserves increased to 2.6 million ounces, and on the back of the significant 40% increase in grade, driven both by the Massawa central zone drilling as well as the additional Sofia reserves. We're doing a lot of work on additional opportunities, and results today have strengthened our belief that there's a significant potential for expanding both the Sofia resources. And along there Sofia struck, and also in surrounding satellite deposits, as you see in this slide. And the same goes for the Massawa targets. We've got some very interesting inventory targets that we had previously defined as part of our early work in this permit. And they were parked because they were not quite big enough to take us to a project decision. But now that we've got this project rapidly approaching our hurdle rates, we've gone back to those satellite deposits, and we're confident that we'll be able to at least convert some of them into the mining change. Moving into Cote d'Ivoire and Tongon; Tongon had a particularly good quarter and despite a nine-day work stoppage delivered a stellar set of results and the most significant being the cost controls as you see here, if you compare just to the December quarter as well as the similar quarter of last year, a good performance and again you know well on its way to meet its guidance of 285 ounces at 680 already, we are just under the run rate, we are guiding sort of 70,000 to 75,000 ounces a quarter for the next three quarters. And if you look at the financials you will see that there's every reason why we should be able to beat the $680 guidance per ounce. We're not -- our focus at Tongon has already shifted to how can we extend the life of the mine not only in new discoveries but just really pulling partly known modules on the edges of the current wells that we are mining and this is a good example of big walk area that has some potential to be able to deliver additional resources reported in. So that is one of our focus drilling programs. We're also continuing to focus on delineating satellite deposits within trucking distance of the blog and as you can imagine any improvements on efficiencies as we've seen this quarter makes those bits more vital even the lower grade ones and it's also starts getting to a point where this logic to go and re-look at these changes where the ore body does continue at it. I said before that the Cote d'Ivoire is a favorite hunting ground, and up on the [indiscernible] particularly rich and potential and we're already been working systematically through targets with the focus more to the South and Central but recently we shifted up and in particular to the North and Northwest, a lot of the extensions of the Siama [ph] structure from Mali. [Indiscernible] in the North Central part of the country we were pursuing extensions to the Bongava system and as well as we've identified a number of additional high grade anomalies which are still to be tested. And in the DLC after a tough 2016, Kibali is focused really has shifted to delivering consistently every quarter on plan as it moves towards full commissioning of the underground mine in the back end of this year and lot as I pointed out in February it's integrated mine plan is still a bit lumpy, we're not sort of just as a grade of the field is really where the constraint is in. And so far we've been able to offset that by building a little more than planned and we expect to continue to do that to the end of the year but in addition, our guidance is that the cradle just step up gently through from quarter three to where we get to quarter four where it will be in the upper freeze that is driving a step increase in production. The guidance for this year being 610,000 ounces at $700 an ounce and we're comfortable of getting there because when you're looking at -- when you look at sort of the upper three [indiscernible] fee that is forecasted for quarter four, we will be around the $550 an ounce marking and if we straight line from the 830 we achieved this quarter where we should get into the $700 guidance range reasonably comfortably. These are the numbers and the bodies variable all mixed in mining constraints will as I pointed out still manifest themselves for the first off of the year but again we've got a good base to work on and we're comfortable with, the back end and I think that, that's key to overall group guidance is currently when you look at well achieve in quarter one on a run rate we're above that mid range and so any improvements on Kibali will certainly impact on our deliverables on an annual basis. So we're now seeing that Kibali will be one of the world's largest fully mechanized underground mines and the first of its kind in Africa and we expect from quarter four onwards that its automated mineral handling system or carried all the life from the underground the main of all haulage or collection haulage through the vans and always into the ground and gold room was out any further human intervention. And these the system is going to be fully autonomous and that will run it from surface actually and the software is being developed between us and sent back. And that's the focus on that as is that, it's going to drive productivity and of course cost to efficiencies as well. Today have been even greater extent than News Kibali has pointed out has had to contend with the challenge of blending variable all tops and last quarter it had to deal with particularly difficult all makes but we'll see how it's been able to improve the current coverage and the way it manages it and the same basis through the integration of the metallurgical and mineral resource management processes. And so we see this has been able to continue to improve as the KTD more user in more metallurgical underground start to dominate the feed. In addition to managing the operational challenge as the team has been able to keep the other capital projects on track but we've commissioned the ultra-fine grind mills expansion and what's outstanding is the expansion of the leaching circuit that's the Pump cell leaching circuits which will be completed this quarter. And then we also completed the second hydro power station and commissioned this just now fully up in running as you see in that picture. And the focus is now on the Azambi third power station which is incidentally being constructed by a 100% Malian consortium. I mean really Congolese contract consortium. Has that all the operations Brownfield exploration continued with a shift in focus from name on exploration to add flexibility during what was clearly have constrained operating phase to long term reserve replacement and in this regard a broadening of the examination of the case good structure with this top lines of prospects have - have been the focus some immediate focus. Also we will continue to explore and grow are the potential we talked about last time and the after extensions of both the 3000 and 9000 certainly to date very encouraging results and the potential to deliver well in excess of a million ounces into the resource and ultimately the reserve statements. We've also stepped out and re-looked at the whole [indiscernible] where we owned a large land package and with as a result of this work and I increasing understanding of this area we've identified a number of potentially similar structures to the main case that structure that how the Kibali and those we will said, one of those is to the eastern in the joint venture tenements and the other is the case to the waste and within the [indiscernible] Belt. [Indiscernible] field, we're evaluating the final data received from the [indiscernible] Belt, and fieldwork has been scheduled to start there this month. And in the DRC as elsewhere and other of our host countries, we strive to be a valuable contributor to the community and the state. And we are involved in [indiscernible] biodiversity initiatives designed to support the survival of unique ecosystem which is particularly out in the jungle and in the Congo. And also a focus on agri business projects to guarantee food security certainly in this part of the world where recently this is desperately needed. And for the first time, we are seeing signs where that investment is starting to deliver shift in this projects which can add to the economic independence of the farmers in that area. And from the solid platform I have shown you Randgold continues to invest in the future. And nowhere is the effect of that investment more evident than in our value per share ratio or the ounces per share, and as I have said many times before, this is the only true measure of our performance in the gold mining industry and certainly value. So getting back to our theme of sustainably profitable, I think today that [indiscernible] that are difficult to copy. And this one really underpins Randgold's performance -- exposes Randgold's performance over the past 10 years highlighting that despite the ups and downs of the gold price, we've shown a sustainably profitable profile, be it profits, growth in production, and/or dividend -- dividend payment or growth over this time. And so, pulling this all together as I often do, we are one of the few major gold stock that are able to show that we definitely didn't destroy value, and trading at significant premiums to what we were trading at the start of the [indiscernible] back in 2005. And really that's the summary of our presentation. The objective really is to give you quick updates and give you an opportunity to ask some questions. So, over to you and question time, operator.

[Operator:]

Thank you. Ladies and gentlemen, we will now start our Q&A session. [Operator Instructions] We have a question from David Haughton from CIBC. Please go ahead.

[David Haughton:]

Good morning, Mark and team. Thanks for the update for us on North America. I know that you have gone through this previously in U.K. So, thank you for the patience. Just having a look at one of your slides, Mark, looking at the Gounkoto MZ4 [indiscernible], and it looks to me if that could be additional ounces within the existing super pit outline. And I presume it's not included in your reserve at this stage. Is that a reasonable way to look at it?

[Mark Bristow:]

Yes. Right now as it stands, David, it's about 30 - 40,000 ounce potential, but what it's -- why it's important and that if you make it longer, I mean we can [indiscernible] down there but could become material, and we know [indiscernible] structure sometimes do surprise you on the upside, but the real driver behind this is that it affects the way we schedule the pit and more significantly we planning to improve in-pit deposit of waste. And so, we need to be smart on the scheduling. And we certainly don't want to tie up any ounces that potentially fall within the mine [indiscernible]. So, it's as much a technical -- of technical importance as well as value.

[David Haughton:]

Okay. Switching to a different mine, Kibali; I have seen previously that you've got upgrade at your -- ramp up for the underground. Previous guidance was expect something like 2 million tons coming from undergone 2017, and then getting to the full run rate. Or is that 3.6 million tons in 2019, is that the kind of profit we've got ahead of us for the quarter this year? Or, does it likely lower production that we saw in the first quarter kind of making changes to those plans?

[Mark Bristow:]

No, they are very much track. The big risk, David, as I pointed out in Toronto, is the Quarter 3 plan. We have built some cushions into that plan. But if you look at underground delivery, we were about 30,000 tons short in our plan for this quarter. But, we're comfortable that we'll pull that up and we're looking right now revised actual and forecast [Ph] is about 2.06 million tons from underground.

[David Haughton:]

Okay. So, it's still on track for the 2017?

[Mark Bristow:]

Yes.

[David Haughton:]

And I haven't seen it anywhere, but what kind of grades are you getting from the underground? Is it around the reserve price or is that 4.85 kind of level? Or are you able to get a little bit better than that?

[Mark Bristow:]

So if you look at underground grades for this quarter, it was around 4.7 grams. And we see -- now we have just done the scheduling. But the overall grade guidance for 2017 from underground is over 5 grams; most of it coming from Quarter 4.

[David Haughton:]

Yes, okay. And that also a coincident with your best throughput as you ramp up for the course of the year too?

[Mark Bristow:]

Say that again.

[David Haughton:]

And that's also going to be a very big production because your throughput is going to be ramping up at that time as well be it maximum…

[Mark Bristow:]

So I think that's the point. If you look at our sort of model, David, we did 141,000 ounces this quarter. And that was a 2.8 gram with a very dominant open cost feed.

[David Haughton:]

Yes.

[Mark Bristow:]

And then we forecasting sort of around 3 -- between 2.9 and 3.1 in this next quarter.

[David Haughton:]

Yes.

[Mark Bristow:]

And in the quarter -- and still was quite a big open cost component. Quarter 3, we should be up at about 3.3-ish. And then, we are still -- and then Quarter 4, we are going to the upper 3s as far as grams per ton goes, and another step up in the tonnage coming form underground. So, that drives a production profile of about 144-ish this coming quarter. And then, 155 to 159 in Quarter 3, and then, a step up from between 165 and 170 in Quarter 4.

[David Haughton:]

Yes.

[Mark Bristow:]

And this takes us to the 16,000 guidance.

[David Haughton:]

Yes, that's quite impressive. And going into 2018, would you anticipate some of the grades coming off from the underground?

[Mark Bristow:]

No, I think 2018 is we have start produce -- we have -- our 5-year plan shows the next four years at 750,000 ounces. And this is where we do -- and the grades, the grades are sort of in the [indiscernible] 3.8 to 3.95 thereabouts. So, the similar sort of grades as we get in Quarter 4; little bit higher.

[David Haughton:]

Okay. So just switching from mining to finance, perhaps Graham could pick this up, so the depreciation step down, you had mentioned in May that previous quarters had included some stripping assets, just wondering what should we expect for depreciation during the course of this year? Are we going to have any of these kind of moves during the quarter year or what we're seeing in this current quarter is kind of indicative of the rest of the year?

[Graham Shuttleworth:]

So David, as you mentioned, the big swing from the fourth quarter of last to this year was that stripping asset of about 16 million [indiscernible], so that is a, let's call it, a one-off, and I wouldn't say that's going to be repeated. The other big adjustment in this quarter which made it a little bit lower than the previous quarter was because we do a units of production adjustment, and so the ton mills across all of the operations was a little bit lower than it was in the fourth quarter. So obviously that depreciation will vary depending on what we do. If we ramp up then you'll see slightly higher depreciation. There was a third adjustment as well, which is also, I'll say, it's a one-off. It's something that happens once a year, and that is where we adjust the estimates for the line of mines where we've effectively -- because we're depreciating the assets over the life of mine, so where we increase our reserves, which happens on an annual basis. As you know, we put out our Federal Reserve statements at the end of March. Then we did an adjustment, and in particularly there was about a $10 million adjustment on Loulo's depreciation. So that's, let's call it, a one-off. So if you take those two out and then you compare it last year, you'll come back to a number that's more sensible.

[David Haughton:]

Okay.

[Graham Shuttleworth:]

Does that answer your question?

[David Haughton:]

It does. And also, I know that you do it in year-end numbers where you breakout the depreciation by asset, it would be handy to see some of that more frequently actually.

[Graham Shuttleworth:]

Right.

[Mark Bristow:]

We already give you so much information, David. We are guiding to an increased depreciation in Quarter 4, so the run rate similar to this quarter going out to the next two quarters step up…

[Graham Shuttleworth:]

[Indiscernible] goes up, and depreciation goes up.

[Mark Bristow:]

Okay. To give you that guidance, if you just want a broad-brush number it's very similar next three quarters, and then about $8 million up on the final quarter.

[David Haughton:]

Okay. Thank you for that. That's it from me.

[Mark Bristow:]

Thank you.

[Operator:]

Our next question is from Adrian Hammond from Standard Bank. Please go ahead.

[Adrian Hammond:]

Hi, Mark. A couple of questions from me please. Firstly, just on the outlook for the year in terms of production, you're at 10% up year-on-year. Does that factor into any potential revisions for the rest of the year? And that's the first one. And then on second, on Tongon, what do you think the life could be extended there roughly. And are you going to apply your similar criteria, at $1000 an ounce as you do for all other projects?

[Mark Bristow:]

So, Adrian, our run rate at the moment is 1.288 just on a basic arithmetic multiple, sort of four times of this quarter. As we've pointed out, you've seen me show that as improvements in deliverables of Kibali, and if so all that works out Loulo will be slightly softer, but very little going forward. Tongon is sort of 70,000 ounces to 75,000 ounces, that range over the next three quarters. So if we get Tongon through and delivered as we plan to, we're just finalizing all the details, and we'll update that the next time we speak to you. Middle of the guidance for me in Quarter 1 is still a good number. We don't build fat into our business, so to achieve the top end of the guidance would be a stellar performance for us. And more important for me is we're getting more and more comfortable about our costs, and that would be good to get.

[Adrian Hammond:]

Thank you. Just on then Tongon, what are your expectations around life extension?

[Mark Bristow:]

So to Tongon, again, if we had color we would tell you. We've got some of the satellites; we're busy drilling at the moment. There's potentially 100,000 ounces there that's sort of half-a-year. So I think it would be realistic from what we see today as another year on the life, which for us is critical because it gives us another year to have another look. And also, we do not apply the same focus once we've paid capital and you've got -- it's a tradeoff between mine closure and marginal value delivery. And as you know, I mean, if you look at Morila and how much value it's created, it's created more value for its shareholders and the government processing dumps than it did processing the ore body. And that's something that we're very mindful of. So as long at it's a positive cash contribution in a mine that is already scheduled to close, it's a good business. And that's where we really capitalize on delivering your 20% RR, it is that big balloon benefits at the end of the life of the mine where you've paid off your capital.

[Adrian Hammond:]

Sure, thanks. And then slightly perhaps on Kibali there, underground reserves that declined -- I mean, if I read this correctly, that fell about 4.8 to 4.1 underground. What drove that? And what learning did you discover about the potential of the underground?

[Mark Bristow:]

So in Randgold we always -- you hear me all the time say, even our resources have to be proved to be a potentially viable asset. And so we, in all our mines, we have proper detailed mine plans to support even our resource estimates. And Kibali, when you start a big underground mine, like Kibali, the initial modeling is very much weighted towards geostatistical block modeling, and on a cut-off basis, like the traditional old South African gold mines did. But our endeavor always is to convert those models as quickly as we can into hardwired, wire-framed ore body models, in which you then put proper mine plan schedules and tunnels, and you can actually plan the dilution, and so on. And so with all the drilling we've done -- and remember, Kibali is a bottom-up mined ore body, and so you're drilling it up. And that's what our focus is because we've got a mine that's stocking at the bottom. And so we've got to that stage where we've got a much -- and we've brought in some of our experts, and we re-logged every single borehole, put all the models, and we've got a big control -- we've learned so much more about the controls of this mineralization just by mapping the banded iron formations. And so it's a very much bigger model. It's also highlighted gaps because when you do that you lose some of the outliers where you've got a -- say, your cut-off is plus four and you've got a block of plus four, but no way to get it you lose that. What you see when you read our report is that we've already -- and if you go through the presentation, when you look at the 9,000 load and 3,000 load upside, there's already over a million ounces, 1.3-odd million ounces, that is already defined at significant grade. And again, when you do that conversion it highlights the potential. And then you go back, and you can now join up some of the sort of floating resource which doesn't get into our model anymore. And so we're more than comfortable that we'll put that back as we draw out these loads. And the exciting thing is there's more opportunities come out of this remodeling and re-logging.

[Adrian Hammond:]

Great. Thanks, Mark.

[Mark Bristow:]

Thank you. It's a pass.

[Operator:]

Our next question is from Tanya Jakusconek from Scotiabank. Please go ahead.

[Tanya Jakusconek:]

Yes, hi. Good afternoon there gentlemen. Just have a question on the Domba project and thanks Mark for telling us about the production, I think it is 30,000 ounces at $700 cash cost, there is a question is that all you know you've made the decision to go ahead on is that all going to be done over what period and what capital would be required to put that through and would all of the gains from that project pretty much go back to the reclamation obligation and the community services or will there be some net money to Randgold equity? Hello.

[Mark Bristow:]

Tanya, thanks for that. So well, first of all, I'll answer you the last part first, this is all about being able to bolster up the balance sheet to ensure that we deliver on this without getting back to shareholders and this is pretty well, it potentially about $10 million free cash at about $1,200 there about.

[Tanya Jakusconek:]

Okay.

[Mark Bristow:]

And we fund two working, it's effectively working capital you really wanted to look at our community and social program along with the relocation process around the million dollars in the whole run and some of the pre-production costs is going to be probably the same amount again. So it's and we monetize three months, we're doing the relocation now through the rainy season. So it's to start soon as it is dry enough to start digging because it's all free dig. We'll start as soon as after the 1st of September as we can to get it all into this year.

[Tanya Jakusconek:]

Okay, okay that's helpful. Thank you.

[Operator:]

[Operator Instructions] We have no further questions. Mr. Mark, back to you for the conclusion.

[Mark Bristow:]

Thank you. Thanks everyone and as you know if anyone of you want to follow up with any more detail of questions, we're all available with teams hanging around here, Graham is on the phone, we got Joe, Simon Bottoms is standing in for [indiscernible] we got plenty of firepower to deal with any further clearings. Otherwise we'll speak to you soon. Cheerio.

[Operator:]

This concludes today's conference call. Thank you all for your participation. You may now disconnect.