Primero Mining's CEO Discusses Q3 2012 Results - Earnings Call Transcript

Nov.10.12 | About: Primero Mining (PPP)

Primero Mining Corp (NYSE:PPP)

Q3 2012 Earnings Call

November 9, 2012 11:00 am ET


Joseph F. Conway – President and Chief Executive Officer

Renaud Adams – Chief Operating Officer


Steven Butler – Canaccord Genuity

David Haughton - BMO Capital Markets


Hello and welcome to today’s Primero Mining Third Quarter 2012 Results Conference Call. We have just a few announcements before we begin. (Operator Instructions)

I will now turn the call over to Mr. Joseph Conway, President and CEO. Please go ahead.

Joseph F. Conway

Thank you, operator, and those of you on the line and on the web, thank you for participating in our third quarter conference call. As you’ve been following this company you will probably recognize that since June 30, this company has effectively been transformed largely through the benefit of a positive tax ruling and announcement of the significant expansion, as well as increased reserves.

And most of that has been at least partially reflected in our share price, where we’ve gone from $2.52 to roughly $7 in that same period of time. In addition, we continue to improve our balance sheet through debt repayment and increased cash availability. And I will say that we’re - generally with our year-to-date results we are pleased but certain aspects of our operating results during the quarter were lower than expected due to a number of events that occurred during the quarter. Fortunately we remedied all of these technical issues and remain very confident of meeting our guidance for the whole year.

You’ll note that there is a cautionary statement in front of this presentation and that some of the comments that we will make here will be forward-looking and I’d ask you to review the cautionary statements at your leisure.

In terms of participation, I’ll lead through the presentation, but my colleagues Renaud and David will be available for questions during the question period. In terms of third quarter results highlights certainly started off with strong throughput particularly from the mill, we are up about 10% on a year-to-date basis relative to where we were in 2011.

As in Q3 and Q2 of every year, we do enjoy spot sales and our sales during Q3 of this year were effectively the same as they were in 2011. Our cash position did continue to increase and we have a very strong balance sheet for a company of our size and capitalization. You will note later on in the presentation the significant increase in our reserves and resources which we announced in early August.

You will also note that we did repay a $30 million convertible debenture in August via the issuance of about 8 million shares. Since that time, Goldcorp who was the beneficiary of those subsequently sold those in a secondary offering in little over a month or so ago. Subsequent quarter two very positive results occurred; certainly the tax ruling which we will go into a little bit of detail in a moment, and also the expansion also we are going to in a moment. But I want to make sure people are very clear despite the challenges of Q3, we are very much on track to meet our revised positive guidance that we did put out as part of our second quarter results earlier on this year.

In terms of our objectives going forward, we continue to be focused on becoming an intermediate player, but we also recognize that we have to deliver on a number of fronts, operational, financial results, expansion and optimization of our existing operation and other operations as we go forward, increase reserves and resources through exploration and accretive acquisitions, and we must get all of those factors in terms of creating long-term success for this company and superior financial returns for our shareholders.

Let’s look at our capital structure for a moment. Just to remind everyone, we have a market capitalization of above roughly $700 million and yet we have a $133 million in cash and on a net cash basis over $80 million, or roughly $80 million. In terms of our operating cash flow that $120 million is after tax, I want to remind people as well as it is based on consensus prices on a five-year average. If you are bullish as we are here at Primero in terms of commodity prices that $120 million could grow substantially. And in terms of our debt, we have roughly $45 million of debt. But bear in mind, a bulk of that is due at the end of 2015, of $30 million balloon payment. So we have sufficient capital from cash flow and our balance sheet to grow our business pretty effectively.

In terms of financial results as well, we did have to do a restatement of our financials for 2010, 2011 and up to June 30, due to a change in methodology between GAAP and IFRS, which is another alternative reporting system. And this all relates to foreign exchange with respect to deferred taxes and liabilities.

In effect if your functional currency as in U.S. dollar is different from the currency in which you derive your income you must reflect temporary changes in the value of the asset base as a relative of currency fluctuation. So that does create a lot of volatility in terms of our foreign exchange rates on a quarterly basis both positive and negative. This is something that the company has no control of. I would point out it has no impact in terms of our cash flow and taxes. And consistent with many other companies, this impact is removed in terms of computing our adjusted net income.

So I would encourage you to look at adjusted net income going forward, because quarterly swings will be quite significant going forward in the future.

In terms of our financial results, I really, again, we look at it for a year-to-date basis, on the nine-month, our adjusted income is essentially double where we were last year, and likewise with our cash flow and cash flow per share.

However, during the quarter, we did have a number of issues and largely driven by the operational side of it, which we have addressed. However, it is important to recognize, there is a significant negative contribution in some respect to our earnings as a result of a rising share price, and the effect on our stock-based compensation in particular.

As an example in Q3 of 2011, we had $1.3 million of stock-based compensation and in 2012 we had $6.6 million, all as a result of our share price appreciation in terms of the estimation of stock-based compensation in general. That translates into probably somewhere around $0.06 a share in terms of the impact on our EPS for the period.

So I want to make that as an important part; as we move into the next slide in terms of delivering on the operational results side of it, we clearly were impacted by four particular items. One is that the listener should know we had an extended drought in the region where we are at, which led us to rely a lot more on the grid power as opposed to our own hydro-electric facility, which have been quite low during the period.

Now, unfortunately the power line that was delivering the power was also undergoing significant maintenance and upgrading leading to numerous power interruptions. This in turn led us to a lack of reliable power which delayed our development plan for Q3, which in turn impacted the availability of the high-grade stopes we had planned to be mining in Q3.

In addition, we also had some ground conditions in some areas where we were planning to mine in the high-grade which led us to a decision not to mine in those areas until - for safety concerns till we could mitigate that.

I’m pleased to say that we were able to mitigate all of those, the drought which has occurred for the first time in over two years - actually our hydro dam is up to capacity or very near capacity. The grid - power line has been upgraded and we don’t anticipate any issues going forward in the future. And in terms of accessing those high-grades stopes we had brought in remote scooping equipment, which will allow us to mine that material in this quarter and future quarters to go.

So again when we look at our year-to-date results though, really in terms of tonnage, production and grade, we are above where we were in 2011. And we are very happy with that in terms of our results going forward.

In terms of our guidance, you will note, we continue to be very strong on where we see and despite the challenges that we had during Q3 in terms of no throughput, we were able to hit the levels that we needed to - obviously to meet that year overall. In the first quarter - in terms of our results so far, October was a good month in terms of mill throughput. So the message clearly is here we are on track. If you look at our cash costs of $624 year-to-date, that’s well within our guidance of $610 to $640, and in terms of year-to-date costs on a by-product basis, we are actually below that level. So again, we feel very comfortable where we are despite some of the issues that we had during third quarter and we don’t anticipate those to occur again in the future.

In terms of our profile and I will come into the expansion story quite in a few moments. But I think it’s important to note, if you look at our 2012 guidance, we’re looking to produce about 110,000 to 120,000 ounces of gold equivalent. However, within 14 months, we expect to be producing around 160,000 ounces on a run rate basis, and that’s over 30% improvement in a very short period of time, and there’s still a possibility depending on results from now and during the first half of 2013 to ultimately perhaps take this mine to as much as 190,000 ounces of gold equivalent.

In terms of – you’ll note that we did release reserves and resource update in the middle of August of this year. Important for me to note, probable reserves went up by 16% and resources went up by as much as 23% and we more than handily replaced what we had mined during that period of time. It’s also important to recognize that the average grade and width was up slightly as well.

So currently, we’re sitting on about just under 600,000 ounces of reserves and slightly over 1.5 million ounces on the resource side. So we certainly got lots of opportunity here in terms of expansion going forward here with the resource and reserve base that we currently have.

So while the quarter was less than expected year-to-date has certainly satisfactory, the question is where we can go from here. So what I would like to do for the reminder of the presentation is to provide you on details on the optimization plan and the expansion as well as some of the exploration activity that we have so far to date.

I think it’s also important though to set the stage: San Dimas has been and will continue to be a solid platform for growth. And then subsequent to the quarter, we did announce an expansion plan. You will note that this mine has been in production for over 100 years and has produced more than 10 million ounces of gold.

We do give a quick look at our expansion program in detail, and you will see the 160,000 ounces is broken down by 120,000 ounces of gold and 7.3 million ounces of silver. And importantly, the expansion allows our cost structure to drop above $600 to just above $500 and obviously a significant drop in terms of our cash cost on a by-product basis from the mid-350s to $200.

In terms of the Silver Purchase Agreement, this is an area of discussion that has quite frankly turned extremely positive very recently. The recent tax ruling has not only increased our silver leverage, it’s effectively transformed the company and added significant cash flow to our long-term plans here.

Just to remind people, currently under our agreement with Silver Wheaton, the first 3.5 million ounces from August to August, we sell to Silver Wheaton and then anything we do in the remainder of the year we split them 50-50. So and that hurdle rate will come up to 6 million ounces in august 2014 and beyond. However, with the expansion, which will take us to at least 7.3 million ounces of silver, we expect to generate summer spot sales to what we have had historically.

Touching up on the expansion timeline and program, the first phase there is actually what we call optimization. And that is really focused on improved productivity and controlled dilution, which comes back to in many respect increased truck tonnage, equipment sequencing and logistics in general as well as sophisticated mine planning, which we’re putting in place currently.

The next phase is really Phase I, which we call - which is the expansion to 2,500. The feasibility work is done. The Board has approved the program and we go forward from here. The next phase could potentially be a second expansion and we may be in a position by mid next year to announce that, but more on that in a moment.

In terms of the 2,500 ton a day expansion itself, as I say, we’ve recently received Board approval and you can appreciate why with 150% IRR it’s essentially a no-brainier in the vernacular. It will have a pay back of less than 24 months and total capital of less than $15 million.

The expansion itself is pretty straightforward. We need to install a third ball mill which is already on-site. We need to reconfigure some of our crushing circuit and then install some new tailings and tanks, and pumps not particularly challenging in terms of execution.

We also need to expand our mine throughput to match up with our mill expansion overall. Fortunately, the Sinaloa Graben has been demonstrating good results to-date and that will be a significant part of the feed for our 2,500 tonne a day scenario going forward.

And we are connecting the Central Block, which is a key area of production to Sinaloa Graben, which will again give us great deal of operating flexibility to ensure that we meet our numbers. There is a purchase of new mining equipments, but it’s quite small in terms of the dollar amount.

And as I mentioned earlier, there is a possibility for a future expansion. It is dependent on exploration results, so that we can ensure that we sustain that 3,000 ton a day for the long-term. But to date we’ve seen some good results and we - depending on what we look like at the end of the year in the drilling and delineation activity in the early part of 2013 we think it is certainly an opportunity for us to look at by midyear.

And importantly to note, if we were do that expansion it’s probably less than $5 million, so very minimal capital and no impact in terms of disruption to the operation that’s ongoing.

Now, I’d like to talk a little bit about our exploration activity in general and our reserves specifically. [Again the footstep] [ph] set the stage produced over roughly 11 million ounces to-date, this mine has got 120 known veins under a very large land package. But what we’re focusing on in the mid-term is really what we call the high grade trend, and you’ll note that shaded in yellow.

The light green areas represent the areas that have been historically mined and our plan is really quite simply to look at the areas in between those high-grade and mine earlier. And you can see from a physical footprint side, there is certainly lots of opportunity here. And in addition to that since we bought this asset a little over two years ago, we’ve been doing significant development in terms of tunnels to ensure that we are in the middle of Sinaloa Graben in particular and moving forward on that one.

Getting a little bit more granular in terms of the exploration development activity, for this year, it’s roughly a $14 million budget with 40,000 meters of delineation drilling and 40,000 meters of diamond drilling, a pretty significant program plus 2,000 meters of exploration drifting. All of it is really driven around accessing what we call the Sinaloa Graben area, which you see on the bottom part of the slide. And in that area, we see a lot of opportunities. You will also note the area of the Pilar Mine on the very left hand page, which will be important when we come to the next slide discussion with some of the other, the exploration activities we have achieved.

From a development point of view, we’re doing about 6,500 meters of development drifting, which if you’re familiar with underground operations, you must keep up development. In addition to that though, we are also looking at what we call a lower level tunnel, which is highlighted in the long green line at the very bottom of the page, which effectively will take us or access on two levels the Sinaloa Graben with the Central Block. What that will do for us is open up exploration opportunities, but also productivity opportunities. We may well indeed we able to ultimately look at a conveyor system on the bottom level, which would certainly improve productivity and perhaps even lower costs. So there is a lot of things that are happening here in the very short-term.

And in terms of the short-term, we’ve already discovered two new veins in 2012. We note them as Alexa and Victoria. So basically where we are, they are near our infrastructure, very close to the Pilar, particularly Pilar opening an old Pilar mine which is in Victoria vein, so effectively here we have gone from discovery into resources and ultimately they will go into reserves and into the mine plan all within less than 10 months.

I think the thing is if you look at the numbers on the slides here of Alexa, particularly the grade side of it and Victoria again particularly on the grade side, you will note that in many cases we are well above resource grade. And that is important to us in terms of what we can do in the mine plant in the next few years. We obviously are still working through our plans for 2013 and we’re not in a position to provide details, but we will able to do so in early January.

And in terms of additional opportunity, again you will note, there has been a, we have been targeting historical intercepts close to the existing infrastructure. But if you look at the drifting areas again, the same phenomena that we’ve talked about we showed you in Alexa and Victoria exists on - and virtually everywhere we are in the Sinaloa Graben, and that’s all about grade. Width has been good, sometimes much better. But grade better than the resource grade is an important feature that we see.

And we are really in the infancy stages in terms of the delineation particularly around the Sinaloa Graben, a lot of that is as you know, as I mentioned a moment ago we’re starting to do a lot more development and have been doing development for two years in here trying to drive a central backbone if you like right through the Sinaloa Graben, and then do lateral development in the coming years ahead. So we are very optimistic here that we’re going to have more success in terms of the exploration activity in 2012 and beyond.

In terms of where we’re going from here, obviously this is a platform and generate significant amount of cash flow, but it is still a single asset company. So where do we want to go from here? Well, when we talk about growth and acquisition, in many respects we prefer the comment - is diversification. We are a single asset company.

Quarterly events can have a significant impact on our share price as we’ve seen in the past and perhaps even a little bit today. And we are very much focused on building a platform, a company that has advanced exploration projects and ultimately a portfolio of assets that will develop in our future. We’re very much committed to only of the Americas. Mexico would obviously be a priority, but we are looking in essentially in mining friendly areas to grow our business. And on projects that are at least similar scale to San Dimas.

So to wrap up, we see Primero as an opportunity. In terms of the compelling investment argument, you have a long life high-grade asset that accompany with it a fairly modest capitalization; you have a very strong balance sheet and significant cash flow even based on consensus numbers. I believe we’ve demonstrated to you quarter-over-quarter that there is certainly an exploration opportunity here. And again notwithstanding the quarterly challenges we had this - in Q3, our management team and our people at site have done a great job in terms of offsetting those issues and moving the company and the project and the mine forward.

And last but not least, if you look at a combination of our life, our cash flow and capital, all of that translates into an attractive valuation. So as we finalize out the year, we’ll be coming up with our new reserve and resources in the first quarter of 2013. We will update our exploration results before year end and then watch for a potential expansion as early as the end of the second quarter, or first quarter I should say to a possibility of 3,000 tonnes a day.

And with that, I thank you for your time and attention. And I turn it over to the operator for questions.

Question-and-Answer Session


Thank you. (Operator Instructions) Our first question comes from [Michael Brown] [ph]. Please go ahead.

Unidentified Analyst

When you look at the possible acquisitions is price or diversification more important to you?

Joseph F. Conway

I’m sorry I didn’t hear you Michael, you said, for diversification, it was what?

Unidentified Analyst

It was value or price.

Joseph F. Conway

Certainty, it has to be accretive. We’re not going to just grow or diversify without having the value proposition for our shareholders. It has to be accretive on key metrics like cash flow, net asset value, reserves and resources et cetera.

Unidentified Analyst

So would you entertain buying the Goldcorp block yourself?

Joseph F. Conway

Well, that Goldcorp block (inaudible) is well over $200 million.

Unidentified Analyst


Joseph F. Conway

I think the reality is given our cash and cash flow that we have I think our primary focus is diversify the asset base, again on a value basis, but to grow the business.

Unidentified Analyst

Okay. Thank you.


Our next question comes from Steven Butler [Canaccord Genuity]. Please go ahead.

Steven Butler – Canaccord Genuity

Joe, yeah, with respects in the Q3 here, a couple of questions for you. I think we are maybe a bit expecting maybe a smoother grade profile in the second half of the year. But can you maybe comment on the 3.4 grams per tonne and actually where your budget was for the quarter. I think you guys were expecting a weaker quarter, but didn’t really have a quarterly guidance for the street?

Joseph F. Conway

That is good. Thank you, Steve. Yeah, just to be clear, we were expecting Q3 to be in terms of ounces produced if you like, to be lower than Q1 and Q2 in our guidance. We believe we are looking at above 3.6 grams and we were slightly below that at 3.4 grams. So it’s really that plus the combination of the power interruptions in particular that impacted our production. And then as you noted in our press release, we did have a small gap between production and sales due to a crucible problem in the refinery, which we’ve also subsequently fixed as well.

Steven Butler – Canaccord Genuity

Okay. Joe, above nameplate capacity in October, is that suggesting that, I just want to make sure, we’re talking about the right nameplate or we talking about 2,150 tonnes per day in the month October that you operated above on that basis.

Joseph F. Conway

That’s correct.

Steven Butler – Canaccord Genuity

Okay, that’s pretty good. Now and also dilution, Joe, as it relates to year-end reserves, resource calculations, I assume you’re not going to be in a position to build long hole open stoping into your mine plan or your life of mine reserve plan at this point, but it’s maybe subject to potential upside opportunity, but how you are going to approach that, are you going to need a couple of more than a few test stopes to see whether long-hole mine is part of your future?

Joseph F. Conway

I’m going to let Renaud answer that in a moment, but I do think we are not in a position yet to put it into our mine plan. But I think depending on the results between now and year end we may well be able to.

Renaud Adams

Yeah, that’s absolutely correct. Joe, the only thing I would add to this is as we speak at the moment we have one machine in a different area, let’s put it that way in the wider zone. So we are testing actually a jumbo, and (inaudible) jumbo there is long-hole. By this Friday we are going to have a second machine in a very narrow area that we consider not so continuous, let’s put it that way. So those are the latest, the last testing we’re doing. So by year end and on time for the reserve, the new reserve statement for June, let’s say February or whatever, we will be in a position to include or not the long-hole and will be reflected in the mines plan, revised mines plan and in the reserves and resource statement.

Steven Butler – Canaccord Genuity

So what could we be looking, just remind us again of the dilution assumption implicit in your reserve base today and what it could potentially reduce, I guess you don’t want to answer that question yet on a weighted average basis?

Renaud Adams

With or without the long-hole, I can tell you with the new tools we have in place as we speak and the full 3-D production model that is coming, we have now all the tools to better predict and execute mining. So one way and another I’m very positive that we will be improving dilution. With long-hole, could be better, but even without we will be improving.

Steven Butler – Canaccord Genuity

I see. Do you remember the overall dilution in your reserves as of the midyear update or no?

Renaud Adams

About 50, still around 58%.

Steven Butler – Canaccord Genuity

58%, okay. Thanks very much guys.

Joseph F. Conway

You’re welcome.


Our next question comes from David Haughton [BMO Capital Markets]. Please go ahead.

David Haughton - BMO Capital Markets

Yes, good morning, Joe and Renaud, thank you for the update. Encouraging to see those numbers coming through for October as far as your throughput rates. Would you expect for that to remain for the balance of the quarter?

Renaud Adams

Yeah, it is in balance with the tonnes, the volume and the quality. I can tell you that so far it’s very important for us to remain focused on our global plan. In our global plan so far this year we are trending [above] [ph]. And we haven’t changed our vision. The last quarter as we explained to the market, we are now implementing, I would say new practices in the mining and we are testing if we can (inaudible) the mill, which we did in October.

So moving forward, we got to maintain that throughput and balance the grade as we move forward. We have now, I have said, all the tools. We know where the grade is. We know we have very high grade zone. We know we have very low grade zone, where we need to better plan, better balance that grade moving forward. The long-hole will help.

So we remain focused. It would be easy to start shooting everywhere. We see very clear our future, and I’m not going to change the methods, we’re trending overall well. I wish like anybody else (inaudible) have been better. But important to me is that we have a clear path moving forward and we’re not going to change our implementation vision.

David Haughton - BMO Capital Markets

And with that Renaud, can you see some further steady improvement with the mining rate and ability to present that kind of tonnage to the mill in excess of 2.2 thousand tonnes a day and ultimately once you get all the other hardware in place going to the 2.5 thousand? Can we see a steady improvement through 2013?

Renaud Adams

My focus at this stage, because we have the tonnes now, my focus at this stage is to balance the grade and to replace every single tonnes of lower grade by better grades, before we think of pushing the tonnes any further. So it’s by step, not quality versus volume. To answer your question, once we balance well, we’ll - we already have the mill now pretty much maxed out 2,150. So it’s a matter if we keep feeding the mill at this rate then it would be a question of can we or not stockpile the lower grade because the execution of the expansion will take its time fine.

I mean we’ll do anything to maximize. But I think we still have a lot of room to balance the grade. Make sure we have a sustainable long-term. We have to go back to old zone that is carrying the good grade. And you will see some variances back and forth, but at the end of the day you know we’ve done a big step and before we push the tonnes any further that is where I want to make sure we balance with sustainable grade moving forward.

David Haughton - BMO Capital Markets

And on that grade front, you gave us an indication of how you’re going for the throughput in October. How are you looking at grade? Are we looking at the high 3s kind of thing or could we even see 4 grams for this quarter?

Joseph F. Conway

For the quarter?

Renaud Adams

Yeah, for the quarter, what I can tell you, as you know how we were trending Q1 and Q2. Q3, we went down. Q4, we got a tonne up now. So to answer your question I’ll be very happy if we can get the grade back to the tendency of Q1, Q2 with the volume.

David Haughton - BMO Capital Markets

Right, okay. So that looks like it’s got a 4 in front of it then. And then moving into 2013 with what you’re seeing at this stage given what you’ve been saying before of looking for better grade and maxing at mill with better grade material what would be your target for 2013 for the grade?

Renaud Adams

Too early, very too early quite frankly, at this stage it’s not even a question I don’t want to answer, is really too early, even internally for us. Needs to see how long-hole will develop in the next month or so. We are still finalizing some veins in terms of 3-D production model.

Really too early, but you know what’s the reserve, you know where we are trending and as we move forward, we want to get closer and closer to our reserve grade. We will be including new veins also next year that are like the other blocks that we are currently mining. So I don’t want to step back, but we still have to answer some questions in the next months or so.

Joseph F. Conway

And I think David, just to de - (inaudible) as well that the long-hole could make a huge difference. We just need to see what the results of that is so. If you look at (inaudible) that our resource grade is call it 6.8 and our reserve grade is little over four and the difference is all about dilution. And the long-hole controls dilution. And again I’m not suggesting we could do all of the long-hole that’s probably unlikely, but we could be able to do a significant portion. And we need to continue our work on that before we really give people a good sense of it.

David Haughton - BMO Capital Markets

All right. Thank you, Joe. Thank you, Renaud.

Joseph F. Conway

Thank you.


And we’ve had a few questions coming over the phone.

Joseph F. Conway



First question, over the web. First question, can you share your thoughts on the size and type of acquisition you would most likely pursue along with the timing? How much equity are you willing to issue to fund that?

Joseph F. Conway

Okay. I mean in terms of timing, let’s say, look at size for a moment, I mean if you look at our cash flow, first of all, look at our balance sheet little over $130 million, but let’s call it net $80 million. And then you look at our cash flow on an after-tax basis based on consensus, you could see a significant build up of cash well over $300 million over say three year period of time.

In addition to that we obviously would have some borrowing capacity. From - that’s the sort of scale we could potentially go to. But not necessarily go to that level, but we’re certainly looking at things that are again at least the size of us or perhaps bigger, in the mining friendly jurisdiction.

What we have noticed as we talk to people is really the desire to - for their shareholders to continue to have a participation in the vehicle perhaps. And so while we could do acquisitions with cash, most people that we’ve been chatting to in terms of business combinations in general would have definitely declared they would prefer to be equity participants in Primero going forward. So that’s generically the answer to your question.


Great. Another question we have over the web, could you please go over how a higher share price has had a $0.06 impact on this quarter’s earnings per share?

Joseph F. Conway

Sure, yeah, that is the function, when you look at our stock based compensation, in terms of our G&A cost, we’ve gone from say Q3 of 2011, of about $1.2, and in this quarter up to about 6.6. So that’s a little bit over $5 million and again I would remind people, it’s simply an estimate, it’s not a cash item, but it is an estimate. But in terms of calculating our earnings per share, you have to look at that having an impact and simply by looking at it of the differential if you like or the absolute in particular of 6.6 and dividing it by the number of shares you have outstanding, it comes to roughly about $0.06 a share.


Okay. And then it doesn’t look like we have any another questions coming in.

Ladies and gentlemen, we thank you very much for your time and attention. This webcast is now concluded.

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