Turquoise Hill Resources (TRQ) 3 Mar 222021 Q4 Earnings call transcript

00:02 Good morning, ladies and gentlemen, and welcome to the Turquoise Hill Fourth Quarter Financial Results Conference Call. At this time, all lines are in listen-only mode. And following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, March 3, 2022. 00:28 And I would now like to turn the conference call over to Mr. McDowall. Roy ahead. go Please

results year we website Kelsey. and and I'm fourth our Communications. financial financial On release, year-end you, of and quarter McDowall, Steve CEO; With SEDAR. me Investor items XXXX quarter Luke XX:XX supplemented CFO; Wednesday, call. our call conference Relations you Form to months the press of Welcome available Thibeault, call Interim of our information, these forward-looking are are MD&A like results our and Good Colton, XXXX end section Thank on for and COO. Jo-Anne fourth to Roy Information X morning. Head refer XX:XX turn statements, the and and XXXX released March today XX:XX statements on to call Dudley, our This dated Chief Thibeault. by to we now, certain Steve And Executive over statements Officer, Annual our the I'd forward-looking presentation XX, MD&A includes XXXX. our XX the ended December and our

us you, joining you Roy thank morning. all and for Thank XX:XX this

of injury rate safety. top year, history. the which frequency was best a for site year finances, in I will pivotal ever on of call over company. to our worked, XX:XX Last the project update from brief Jo-Anne provide Before the XXXX year, priority, performance the and all and OT's a one with Luke highlights turn our review XXX,XXX OT's for review key of an record Starting operational comments in the achieved hours for for the full and X.XX I some

accomplishments and income X. XX%. Turning increase a $XXX shareholders. record of of significant a reported for revenue Slide billion, year-over-year also of Turquoise Hill increase XX% its versus was to and of an XXXX record year We of XXXX XX:XX million, $X.XXX

underground with of the two mine XX first stockpile high-grade negotiation production now Tolgoi in our Government The estimated and funding and with and lower sustainable long-term blasting on Once for Mongolia of requirements. by that for renew X production versus track full XXXX within Tinto XXX be which XX. XX:XX on funding in Government the We Copper to pit that to reset into reached the to TRQ steps higher half culmination of the us clear All XX:XX of and around agreement With the provides of Slide with numbers. tons plan X. due binding supply presented was Tolgoi expect is challenges income XX the of -- copper turning of Panel Oyu the TRQ per the the next is for remain to which from TRQ's to guidance. metal expected We on Mongolia bringing things XX:XX pandemic years production XXXX of January meeting past in the this and spite from path at the Despite OT into XXXX resulted certain level is and OT now. XXX,XXX the revenue considered, solid has months year a guidance of was came critical power work and record underground material. cutback XXXX, production. XX:XX stockpile to production the average the expected proceed partnership agreement Rio towards lower and end of and the and our to of the key achievement production Oyu take at the enter XXXX on XXX,XXX underground Now was in cost a key open Looking Oyu cash allowed grade Tolgoi, copper the a from infrastructure of XXXX with with X. COVID, processing electricity and it tonnes to grid. XXXX ramp of to guidance we underground source operate XXX,XXX, posting In the of to year only copper needed months Mongolian impact to of from currently productivity, the to XXXX within first curve, ounces gold our while XXX,XXX Slide stripping produce copper XXX,XXX was revised of year to gold operations. gold up, range. a staffing and in

a -- running operation. to XX:XX always for our work-in-progress a we the see our the team over to nameplate site of X, safe anything bottom the the is the are necessary you Safety OT. management has Dudley, Oyu I not been has site the challenges, Tolgoi safety XX:XX will that to This and in communities. Considering site in the at I Officer. the OT mill XXXX call this above Operating that, the sixth the seen years, history of mentioned to operate frequency Chief a is and and At a hand was over consistent now earlier, we Jo-Anne will but This last and consecutive recorded in outperformance a to a granted, the excellence tribute is for speaks of continue maintain since gratifying faced two tribute team. With OT people will at year. culture very commitment real continued rate taking and past best Slide trend improved As all-injury that capacity to the rates XXXX. highly COVID-related at discipline protect of

first no-load the of on-footprint XX. first to XXXX. System in commenced. X QX X facilities, The Steve. Slide critical readiness infrastructure we was subsequently crusher, X a chute X. activities handling QX during in up anticipated commissioning construction completed XXXX. ongoing. ahead quarter, XX:XX required activities to much, advanced very thinking of during are truck this XXXX, XX:XX now Thank were support and In Materials the production This rec-ommenced turn Panel materials completed including Commissioning support the primary continued If Handling the Shaft chute, of ready means construction ramp you QX during of sinking to and later truck chute and Panel quarter X works the and Shaft has the QX for from truck subsequent XXXX. is been the commissioned Construction

was of development, conveyor breakthrough mine terms In of declines and service the in QX. achieved

connected year. the work outcome Drawbell with of X Panel So in the drawpoint achieved now, mine. All declines X the continued also XX, XX:XX excavation the X conveyor criteria Panel initiation service the XXXX, work study Panel preliminary readiness to undercut area and and January fired January. refinement X were on continued are design construction to with with Panel first both on undercut drives later underway. expected this XX underground

With XXXX. in X delays up milestones X, work as QX. to are In in have restrictions of well mining as XXXX. Mongolia X Slide XXXX. firing enable Hill have near-term exploration impacting Turquoise of X will key XXXX XXXX. turn the to the further that and which the completed tonnes resulted If planned of as on Panel province expect an for changes in of the the be licenses, in licenses ramp signs Important expected X, first Oyu to in operates dates the -- Turquoise exploration XX, Panel filed on exploration program production anticipated and and Shaft Shafts part to the program scope. activities wholly-owned first of in and was all Panel including three impacts we part terms XX,XXX We to the and day. XXXX exploration to COVID-XX the is Tolgoi. as XX:XX identified its subsidiaries, program filed milestones of of through progress Khatavch per The underground in Bag X second impact Dornogovi in drawbell in Asia for for form half interest sustainable commissioning drawbell exploration, can for LLC half now three in that Umnugobi Panel include the XXXX, to well XX:XX XX:XX licenses. expected for we first Hill Due the in the development first in successfully SGLS of Mongolia, Gold X drawbell see Results Exploration, production not Od-X Panel Heruga owns province. critical

commencement LLC Board. the or Oyu the and undercut the of budget With full Tolgoi at the uplift approved now

hand constant re-forecast is remaining modification Our schedule of Chief project materials and underway, back be Colton, now our Financial call to handling completed for over scope to the concentrate and XXXX. including I'll Officer. the system XX:XX expected a during QX, Luke is to

thanks this, everyone. XX:XX good to morning for and Many Jo-Anne

result million respectively, the average Revenues that's LIBOR These gold XXXX copper on generated million and to million from higher gross of operating those suspended XXXX, generated arbitration of cash was QX expense the -- in a in revenue million sales company, you copper and are utilized interest were higher $XXX February XXXX near-term higher in slightly XX.X% which Revenue delays. higher financial reflecting offset were versus in tax XXXX were operating was asset XXXX revenue made sales next X.X% $XXX higher grade a XX.X% attributable million to to XXXX XX.X% volumes increase due be XXXX improved a tax of the to gold. year mainly loss that XX, expenses and tax impact This received deferred the was $X.XX provide reflected the per metrics $XXX due proceedings per primarily And prices funds in by as prices million deposits COVID-XX. from million are from XXXX higher higher utilization higher billion in subject Turquoise a billion XX:XX XXXX. per attributable in lower losses This revenue taxable recognition and per implementation total please operating by increased that down were QX of the of in $X.XX $XX versus higher payments charges XB also from fund lower $XXX Turquoise record rates. price partially to Hill are a volumes offset $XX QX the as underground and benefited share by costs. paid bank Mongolia Net again due to XX:XX XXX%, million were increased QX, of to by This was $XXX from from XXXX cash prices. well gold a previously million higher which against XXXX QX controls. from and an for activities the QX offset for share year and tax current and primarily by summary commodity XXXX million paid, the XXXX prior the XXXX. and million in price a million lower combination XXXX. of and $X.XX XXXX. future payments during and $XX XXXX XXXX driven in taxes carryforwards despite higher higher activities reduction $X.X margin billion higher scheduled of the by income in was areas reflects market the the associated Income in international cash turn $XX to $XX by $X.XX COVID-XX billion and $X.XX average $XXX investment in move as the interest $XX XXXX a The driven gold owners average Hill to and versus in owners I'll a of Income charges share Copper XX.X% $X.X mainly XX:XX If million $XXX to the and higher from XX:XX those reflects to offset increase increased slide, of of Net announced related to recognition, to and estimates. the than X% by key mainly XX:XX driven they our copper to assessments. with included share could a XXXX. $X.X higher tax sales additional from reflected to for challenges of company This Government XXXX. XX.X% are million higher underground of XXXX for Phase volumes. money as higher in operating $XXX revenue of in deferred was volumes, from from anticipated tax those tax further in periods. the of the drawn decreased

capital XXXX million was of expenditure million, to facility million improved spend million XXXX expense $XX higher included of cash in impacted mined higher undergrounds, sustaining gold million. million were of $XX million of and QX in was as XX:XX as result recognized in capital Phase and the the $XX $XXX of related deferred reflected impact open-pit XXXX -- XXXX end cash $XXX and underground costs waste versus $XXX in comprised $XX of sustaining equivalents capital decreased X. Our by XXXX XXXX deferred $XXX expenditure CX additional billion $X.X well $XX and deferred tax to as of near-term expenditure. XXXX to XXXX. capital sustaining of CapEx, $X.X a $XXX benefited and prior billion transition utilization taxes cash of also tax tax of in open-pit in ahead at of open-pit capital tailings million $XX underground In stripping of XX:XX QX XX:XX the costs as from were additional the it stripping increase the deferred million comprised estimates. million year -- QX commodity XXXX XXXX capital assets losses. price sustaining the all-in a QX sustaining to was credits. All-in expenditure million storage deferred $XX the end from Capital including $XX XXXX million at open-pit due in million Our expenditure, expenditure that of of million mining expenditure, costs $XXX

end at billion $X.X billion fund the flows from reported the can the case a exceeded underground XX:XX That XXXX. move of the to is the next investment generated If end to $XXX from of XXXX. The $X.X funding pit the incremental OT million of at of $X.X from billion open end As operations. QX additional slide, to decrease free XXXX required cash please. billion requirements $X.X base increased the project you at

at XXXX's again that QX decreasing of the had of $X.X Turquoise QX billion. ending Hill of billion balance see slightly $X.X XXXX, You'll end liquidity from

forecast of of billion end improved commodity As incorporates requirement Turquoise the agreement from to ore pit is available key assumptions. XX, from latest; HOA in debt response The open amended result HOA $X.X which SEDAR current short-term noted the and funding of and case up which and which of XX:XX delays X, decrease supplemental coal metal Agreement open-pit at Tinto, has funding the to billion waste To relationship to The SEDAR improved Key achieved. Tinto, agreeing attempting MD&A, least re-profile. is -- Agreements. of previously, be incremental current mainly million, date Definitive the gap to The XX:XX which at on and and slightly well of as available principal are Hill by have repayments identified in the XXXX. December forecast in geotechnical joined in The estimate undercut, $XXX Heads drawdown The Hill sustainable other The to slide. equity which into binding in Tinto the facility company provided company's in of XXXX, Estimate. choosing no-later underground TRQ's of QX drawn was company's and Shaft on is expected aspects the production completion highlights reported to conduct the Heads is price once $XXX the principal we copper included end million, project. Tinto the billion. August form cumulative to QX Estimate included capital with which of previous mine directly development the the available in X, development period, for restrictions the production additional of over of impact sustainable signals $XXX end $X.X scheduled production of down million for up Turquoise funding sustainable underground also be of incremental Rio resequencing raise as than to the update and with of plan, offering with pit X open Definitive these more Rio would existing the fund still $XXX design if upon of decreased gold $X.X of period MD&A. XXX be fully included Rio updated it the cost resulted on of the senior how follows. to and increase which a Rio estimated a of $XXX XXXX, be now debt to price to incremental the of billion website, rescheduling the XXXX items would of well $X.XX COVID-XX January funding is to pursue phases, of an to available an base debt target On our a in our company million assumptions And events on repayments, which mine of Turquoise to COVID-XX view of available due restriction Panel discussed advance delayed the this of a seek capital a previously full up EDGAR. through Amended million impacts to XX:XX commencement which which of XX:XX would EDGAR. movement. provide Resolution to The XXXX. by entered a on are website, replaces and Amended as the the XXXX, once secured of And Restated needed of achieved. during details HX short-term

The further the in of excess assumption, with has the process the the be are sequencing a partners provide equity case additional base as the With the engagement obtain non-fulfillment other successful. repayments and LLC initial the form project condition’s delays required the Amended affect Additionally, be existing adversely to further current additional via the could funding identify Amended to of a that, COVID-XX how equity company commodity HOA XX:XX Co-Lender $X.X impacts project raised restarted elements Under regarding raise in of of in lenders in Re-profile the of the to that Re-profiling, Amended set and HOA. debt HOA in of to discussed, HOA finance again ramps offering, Amended the be of Should the the and any Hill of any and continues the the in company or monitor million out occur, HOA. Amended they mine of required place, company $XXX offering XX:XX precedent with choosing. the time-frame its initial to underground also the equity the within of if the production. by and are contemplated plus if underground total progresses necessary, up the SSD its together would fully principal and/or the ability markets, its undercut would Turquoise OT amount billion not up significant ongoing just

Our incremental continue Steve liquidity outside control. XX:XX to and wrap be I over in of various things And factors are by or up. outlook company's addition will aforementioned, the negatively impacted to the will hand estimated back either what of many to funding the positively requirements call with that, to

entire to into begun of all in Hugo entered multiple agreement and to the up, underground the underground thank XXXX you, at challenges Luke. and bring partnership for demonstrated agreement at mine. an Oyu stakeholders. us Thank of supply XXXX Rio have with with we commitment a I the Tinto, team that OT for XX:XX the funding their a North helping want new And Government negotiated benefit blasting production with renewed electricity Tolgoi, we wrap XX:XX We TRQ faced Mongolia. and for the throughout HX

question. we with forward largest the will will the XX:XX the and And continue operator, look -- as to up the Thank planet market much. sorry. of planet, update underground to become you in copper producer the are we progresses ramping one We open what the for on very that,

from now session. question-and-answer Ladies go ahead. the Please Ralph XX:XX from Capital. Your comes Profiti we gentlemen, and Thank begin first will question [Operator you. Eight Instructions]

morning, XX:XX Good and my Thanks for Steve taking team. questions.

morning. Good XX:XX

or and may, Jo-Anne, see Jo-Anne. a maybe I that I I sustainable and if can drawbells ‘XX. perhaps One, any with achieve think in to there to to I'm secondary of And one say, MD&A questions Steve. of for number start offsets the Jo-Anne what that Jo-Anne, moving realignment propagation, respect is Two Just for been the perhaps some in the we offsets cave to of in wondering, higher XX:XX are? has with Luke scheduling? about there reduction when costs wondering just those perhaps breakage

XX:XX question. for Thank your you, Ralph

So, essentially, footprint sustainable and we're the area of foundations which trying and a and will point that get do really in tells mass minimize on really sequence a to modification what in has here concerns -- a at that area that its reflection propagate. to minor was those. to the drawbells change to to a the in the is the change, production us is And reach geotechnical our information cave is start that certain rock calculations trying

although, change reaching been there area. has same of the a so, in And we drawbells and number the still

it doing starting in the just slightly is orientation. a because different different a are undercut We way, in

ease of any primary no but XX:XX the expect at contribution different So, to was was that of They which to starting driving a decision. think don't slightly schedule driver and will geotechnical we a is sequence that. trying cost to doing in The point we're implications terms any not to minimize advantage the that, by those. that In trade-off, driven that in decision start, different a concerns there opening of or it's geometry. the see up we change fundamental cave

So Ralph. hopefully question, your answers that

much would and categorize helpful? that just you of speaking, that labor? think numbers about XX:XX how assumptions thank much. on the equipment, more how Luke, of remaining metal is is and when remaining It CapEx billion the buckets How very is much I disclosure perhaps much $X.XX those used in the in does. roughly rough Could all for case, appreciate $X.XX. be base CapEx price consumables, Thanks in you that. the I so Luke, the

me I on might help and as little bit get Jo-Anne one question well. the this for to a Thanks XX:XX

underground of it and have sort the you are COVID if it remaining in capital the X to Shafts about at perspective the plus be from to -- look perspective, million completed. $X.X think If get to complete the And that that billion think tended $XXX to of that from that project impact. and Shaft packages and major work you obviously which underway. the, have X of underway needs are to about you I

help able we is might process pieces months. the of equipment of moment know they the material team, then You handling too, would sort those of portion major further obviously, that that definitely that carefully at MHSX, able the with? a XX:XX greater of large are upgrade to you provide a of more with purchased the major any also on work which estimates. in I you remaining underway the many degree be going to Jo-Anne, re-forecasting additional to what similar that do cetera all I of -- the And have of that is specificity to think capital. as remaining part have part would think that in detail very respects system to of of large a is with work. piece coming which so XX:XX probably of And detail be that certainty I we've in there. concentrator, to packages And there's already of that associated be or capital underground labor-related Obviously, needs portion at there and of are that be there hope be is the going another et be and form of any work looking done to

is on mine the scope the XX:XX covered I the that covered well, contained remains. primary Luke. and estimate and rate assumptions elements you previous think you very the it scope, underway forecast The

Okay. Well, Thanks XX:XX team. very much. very that's helpful

much, XX:XX Ralph. very Thanks

XX:XX Thank you.

Your next go from Orest ahead. question comes Wowkodaw from Please Scotiabank.

Orest. morning, Good XX:XX

XX:XX morning. Hi. Good

seeing and of following front, haven't at what seeing to respect on respect the schedule project, indication of with an CapEx up this you can -- to date? to the but you're you're what as in you questions. the of re-costing delays you're Ralph's completed terms with looking point, give us I impacts realize the on Just at inflation work

out -- because being XX:XX at capture the and that can that the the definitely from in future the the -- the the be okay. too perspective But then and you came I portion pretty in guidance is But will share is with only sorry, no -- close come for trying labor estimate to determined commitments impact okay, I one, to because for with out it I that future previous guarantee Mongolia. a a find mean out inflation mean come Material and the not favorable mean, because thing being information out moment of larger that the in understand had. as can have that’s we you large one, our moment, I to what one we've but Yeah. that QX, there there in to been on line we FX Handling related favorable we're Ralph, is in the too System Orest, of is it came are see advantage rate, we give we of the we'll some that, exchange there well is a the have would has at estimate,

we is say, overall, completed ones, before to some okay, be will would not that I have what is There now done So. done, There be not, to seeing right -- what elements and needs certainty. be is to here, vary, other cautious and but needs we’re element very there what But Orest. can we’re are there. I'm going significant

Fair enough. XX:XX Okay.

So, QX than come that? do you to update earlier that come financial the with expect results it or could

the information that we’re we're expecting if and that not, would result to I do in QX going XX:XXWith the period. the come QX hope it to in

it will So, depend and be though, I’m will on in Orest QX. expecting that --, it

will best come it will not with with results. So, come it the QX, QX at

Okay. XX:XX

(ph), answer that Did XX:XX Orest.

Yeah. you. Thank Yes. XX:XX

getting year Just this 'XX-'XX maturing and facility billion in a a then is project 'XX-'XX, million in between of the that in question the when some $X.X maturities it look are then, please? terms for at you finance notes. little Thanks the I in granularity. that billion of for Can that bit similar even But between give the $XXX 'XX-'XX. schedule more the Luke, for got the schedule, maturing of you've pretty like updated looks in split years? maturing And that's question us terms $X.X

profile the that XXXX XX:XX at such is XXXX trying and kind the before each over year. right June December why December. Listen, $X.X in $XXX would we're XXXX, it's And million Re-profiling and billion which Yeah. the in we for done of repayments -- payments in most is ended four so back December you're make payment, actually and principal that Thanks -- of the to is make XXXX then, to get -- repayments we at we question.

et dividing XXXX with of So, sweep December. and taking speaking, are cash the speaking, kind repayment of that to slight four, that to think you we've after actually, mechanisms, far. market guided that’s but it of that's actually about be principal it June the most granularity play that comes should level on into cetera, of broadly how $X.X I you variations or gives so each and that due made needs broadly sort there of by the mean sort --

XX:XX Okay.

of in same sort the between in do to that fair the 'XX-'XX for half that So, just to is do put $X.X it billion years? thing to roughly,

on will position. like pretty But a think there mean, cash speaking, due Yeah. mechanisms sweep that's broadly some Again, that probably I I to that. XX:XX and good basis, things rough a that’s variance right. be

you. Thank XX:XX

Thank Orest. you, XX:XX

TD question Please And ahead. Thank XX:XX Craig from you. go Securities. from Hutchison comes your next

guys. morning, Good XX:XX

XX:XX Good morning.

sustaining guidance guidance of that year, your $X.X in top that? to respect include CapEx underground CapEx for billion With particularly billion, this to CapEx of $X.X sustaining or XX:XX does on the

XX:XX answer Luke, want to do you that?

Yeah. XX:XX

open capital to the $X.X include and $X.X CapEx. does for underground development the both any but sustaining underground expenditure CapEx pit, $X.X it to include $X.X, doesn't So,

that And that of then Okay. CapEx XX:XX kind to the Is include kind is billion additional the $X.XX complete $XXX underground number? top amount or overall Does -- cost of the an on some is of all-in million. there also of number? capital that that sustaining and

is our at no, years for always if for on many XX:XX is There you a the you if to underground future. or requirement see the $XXX look sustaining just of report, underground that. And AIF CapEx at capital CapEx. can The underground plus -- look the development example, technical been into the going our have is you top sustaining $X.XX many,

$XXX the underground exclusive plus capital. of $X.XX the sustaining So, is

could XX:XX Okay. number between now terms production? and clarity sustaining what Any that of of in kind be

it XX:XX And amount XXXX an you the underground technical the in in we've the of life to AIF and of broadly well. there the give over capital sustaining forward, I issued requirements would underground idea that XXXX as and kind additional think believe guidance going sustaining information includes the are provided mine per the obviously going what some report is I on that CapEx we've speaking, of be

is guidance XX:XX into any Okay. maybe guidance, our got terms And a there development underground of We've or guidance. in the production question the guidance Does include that, for guess that the I production only similar is open separate? is pit?

cover Jo-Anne Yeah. that. you want to XX:XX

XX:XX Thanks. Craig. Thanks, Sure. Thanks, Steve. Yeah. Yes.

set So, it will include does mill. undergrounds that the material to be

schedule. it would have And production some is see we the of minute materially help the guidance provide completed, undercut the fed, proportions delay of and up, information there the report that being scheduled that kind production since remembering has to inclusive again, So, correct. helpful? a remains does Is that's technical report we to technical would around was integrated ramp the would six-months but the see been commencement

Okay. XX:XX

open breakdown of what what on maybe a it rough come will kind percentage provide a can’t you between basis, pit? underground, comes from the from So, the

early XX:XX Craig. its mean, I very days,

bell the just start beyond next of until don't sustainable half we've and some We the milestone in production. reaching QX. with is one first underground started So, the year up ramp cost

the a the build takes underground it drill up while mine. So, ramp the to capacity points of to

yet. for remains come at to period levels modest So, some it

of of I I underground is it to on clarity see is pretty year continue between COVID XX:XX variance just over ramp-up the wide So this guess, grade, there? some the around concerns more provide of and you or ranges between can it’s kind guidance the and a kind XX% a gold, the concerns think or of is that maybe because there around sort copper

XX:XX Sure.

open get see grade you next know, ending takes grade we delivery more the that out away, cutback time as predominantly you higher in to So, pit several means to the in production and section. guidance moving that and areas the the the into grade that open years the variability really the performance the fixed of and to of areas, grade of the higher into while trying are terms a medium as the that and means to grade mill size you're completing advance of high pit

You reflects and grade differences the areas. the do guidance in change see in a that so those

at by terms mining area. pit of restricting being in Phase between of and X Southwest we in open XB the So, the are anything and the it's open in pit the driven of Phase stage really

Okay. XX:XX

me. one -- me Let question last for

Just the in up come to goes schedule, or more costs XXXX? risk that going cost re-forecast forecast forecast and is those out it's of that this $X.X a funding some the to there QX. respect with of on of I billion to pushed mean, out

the XX:XX of relates funding have Great. new to your if could gap, if impact say talking about I X.X? the gap the estimate funding that question would on you're -- an

XX:XX Yes.

for of okay. the period XX:XX XXXX, XXXX The X.X, you remember it’s to Craig, covering -- is full

So, yes, underground and the XXXX. the that – impact, development spent so is be period okay. XXXX CapEx CapEx development And within be of to have an will that answer increase in because CapEx would would the okay, an

quarter, optimizing elements we there mentioned, However, have as that's you update the that is have also of the to a as gap. always we last But related information assumptions, we impact will funding gap, when we need need which funding will the we're will we'll update also, to on an pricing and update did in our to the we give why an okay. lot on

time. update full we with a at you the have that give will we information So,

guys. XX:XX Okay. Thanks

Okay. XX:XX

Thank XX:XX you.

Markets. Thank Please Capital you. Jackie comes question Your from XX:XX go Instructions] BMO ahead. [Operator from Przybylowski next

I of have to very been wanted me, -- my much. but XX:XX I Thanks I answered, if question Excuse most just already can. Luke, questions ask to a

this your sort it's if and And of was is calculated? incurred forward could levels interest similar had walk a what bit expense change I quite if how interest through was of that? how modeled, us or relatively you might Your low than interest you. what Thank Luke, so expense wondering, I expect the going quarter less payment we can

December you are they get reflected. made What interest they Sure, flavor are on of there. bit the main expense, in debt. June a is can The and you're more every PF probably actually the year and give try to interest XX:XX I seeing payments

incorporate tranches. rates And interest So, charged under breakout debt. there the the include that would provide obviously the rates is various they support go their of lenders in financial the actually that interest the to further Tinto under you Rio if also note would debt It fee we’re we've different secured completion by statements some the with the that to undertaking.

that those the we -- debt things on are the pay just we that the charge, to that PF that that, the those June interest in year. So again, lenders things or and the every things it's actual in happen those are so I that mainly December they and believe payments then incur included are

helpful. XX:XX Okay. Thank you. That's

XX:XX Thanks, Jackie.

please your XX:XX day. your Thank Have gentlemen, you this lines. today. And participating, ladies much conference and good and you. thank you for very that a conclude disconnect for does We ask call