South ex-Nevada, in terms of reserve replenishment, you decline 0.7 million ounces year-on-year. I wonder if that worries you. If there’s any sort of color you can give us on the progress of the asset potential program within the rest of the business. And then just a comment for Gillian. I noticed that the cash conversion has improved tremendously with the progress you’ve made on that lock-ups in DRC, Tanzania, and the duties in Argentina, so just a congratulations on that. It’s a lot more than your predecessors ever did, and in such a short time.
Alberto Calderon: Thanks very much.
Stewart Bailey: What is the third question?
Alberto Calderon: Adrian, I think the third question, could you just repeat the one on full asset potential and reserves? We kind of lost you halfway there. Sorry.
Adrian Hammond : Sorry, yeah. Replenishment is a concern. You were down 0.7 million ounces year-on-year. So perhaps you can recognize that as a risk.
Alberto Calderon: Okay. Well, thank you. Look, we’ve heard you and believe me, you are working towards increasing. We know we need to increase probably to a three year eventually. But we will only do it when we’re comfortable that we are not putting out like sort of gloves. And with all due respect, I’ve seen other that said, ‘oh, I’m going to go down by $100.’ And yeah, you just don’t know how to so we will do it. I can’t promise you when, but we will do. We are working a lot in mind planning right now across the whole company. And when we have a better understanding of all of that, of the long term, we will. So Gillian has it on her to-do list, but it’s really not Gillian. We just need to have the operators a better understanding.
But we’ve heard you and we’re working on it and will come one moment when we will be providing that and mine-by-mine also. Prospectivity, JVs, it’s actually not in the list right now. There are some other companies that have assets in the region. And we are not against probably creating a bigger one or something like that. But it’s nothing that is actively in discussions right now. It is such a massive resource as you see that in itself. It’s just going to take a lot of effort getting to that 0.5 million ounces. Look, the replenishment, if you look at our track record of 25% per year on six years, sometimes it’s a bit higher, sometimes it’s a bit lower. I really am not concerned about that. We actually, if you look at resource actually, we did increase now, but by 5% resource, more importantly, you see where Geita is – I think it’s at seven years.
All the big ones are between seven and 30 and 10 years and Tier 1. So I’m – I know we went down by $0.7 million, but it’s a lumpy thing. We have very interesting targets for this year. I am pretty comfortable that if you take a three year average, we’re basically replenishing our – I’m pretty sure we will be replenishing our depletion.
Adrian Hammond : And that $0.5 million ounces here, can you give a rough guide as to when you think you could get there from Nevada?
Alberto Calderon: That goes with the pre-feasibility. We know that the resource sustains something like that. But look, it’s the pre-feasibility study. I’ll take 18 months and we will be informing you when we have more right now. But at this stage, it will be very speculative. What we do know from the concept level study is that it’s going to be very profitable, that it is massive, that it is multi-decade. And we also know that it would be in the all-in sustaining, in the high 900s, let’s say at a high end. But we believe we can optimize that.
Adrian Hammond : Thank you.
Alberto Calderon: Thanks, Adrian.
Operator: Thank you very much. Sir, we have no further questions in the queue. Would you like to make some closing remarks?
Alberto Calderon : Okay. Well look, thank you again very much for your time, for your questions as always. I always think when I’m reading the presentation, it’s a bit too long and I hope we didn’t bore you too much. But we are proud of what we have done. We are proud of that in what was a difficult year that started with things beyond our control, with a concentrated collapse and with the change in the regulatory environment in Brazil, we were able to overcome. Probably I would add, you can see and we have heard you and all the analysts. We are much more focused also and our new CFO much more – not so new, but focus on cash conversion. Working capital, you can see it’s much better in the second half and that will be continuing.
So it’s not only cash costs, all in sustaining, but we’re also very, very heavily focused on free cash flow and working capital and its showing. So look, things are coming into play, into terms and how I finished again my last introductory comments. We have a great team at all levels. We have very committed people and we’re doing what we said we’re going to do, and that’s the most important thing. In the end what we have is our credibility. And you guys are the ones that judge us. Are we delivering on what we said we were going to do? I believe in the last two years we have done so. But again, many thanks for your questions and for your attendance.
Operator: Thank you very much. Ladies and gentlemen, that then concludes today’s event and you may now disconnect your lines.
