But invariably, when we start to see the generalist come back into the space, the specialist will be looking for the growth vehicles that provide better leverage. And I think if we create that mid-tier company amongst the rest of us, I think we’re going to be — something that’s going to be coveted in the space, because we can provide that growth while providing trading liquidity and institutional relevance. That’s what’s absent in the space right now. I think invariably, you’re going to see these remaining smaller-cap players start to consolidate. What I can predict for you, Joanne or for any of our shareholders on the phone, is the sequencing of that, who takes over whom. It’s too difficult to predict at this stage. But it’s been kind of quite over the last year or so because virtually everybody in the royalty and streaming space in the smaller-cap universe have been planning 52 equals, tough to have those kind of conversations when everybody is discounted severely to their net asset values.
Joanne Jobin: Excellent. And just a few more questions. We are at the top of the hour. At what cash rate does it make sense to spin off the contracts that are not to be producing for years? I guess like what value do you hold?
David Garofalo: Look, I’ve heard that argument before. But the reality is, we’re not getting paid for that option value in the small-cap company like ourselves, $200 million market cap, arguably larger end of the spectrum in terms of smaller-caps, why would it get a better valuation, even a smaller vehicle, with no cash flow. In fact, it gets less valuation. There’s no economic rationale for spinning it out to a separate vehicle that doesn’t cash flow. And I think, in fact, what small value we get for those long-dated options would get effectively zero in that kind of vehicle. And it would just create additional G&A costs, because public companies as we see have a fixed not associated with them, you can’t avoid listing fees and insurance and whatnot. Why duplicate that? We’ve been going in the other direction and realizing synergies through consolidation. So deconsolidating just introduces those costs back into the system.
Andrew Gubbels: I think I’ll also add that. Investors sometimes forget that their core assets within the portfolios of companies like Royal Gold and Franco-Nevada that we’re at point in time exploration assets with no production. So, holding on to some of these more long-dated options if they don’t have a whole lot of value to spin off now could have a lot of value in the future.
David Garofalo: It’s an excellent point, Andrew, because guess what, they’re bought and paid for. They don’t eat. They don’t decay, they just sit there and wait. And eventually, there’s going to be value realization, not on all of them, clearly, but that’s the beauty of our model is, there’s no limit to diversification we can achieve. We can have 2,000 royalties the same G&A footprint that we have right now, and they don’t waste, they don’t occupy our time. They just wait. They provide infinite optionality to the shareholders at effectively zero cost.
Joanne Jobin: Okay. So the final question of the day is, do we — I love it when shareholders say, do we have a certain valuation or multiple that we monitor to determine if and when it would make financial sense to introduce buyback of our own shares? And, multiple barrels of question here. And what about other publicly-traded RT stream companies? If the price hits those levels, do we have a plan on buying back at those levels?
David Garofalo: Yeah. What’s clear to me is that, when we start to get into sustainable free cash flow next year, we’re going to have to reintroduce the concept of returning capital to shareholders in whatever form. And that’s something that I’m looking forward to having a discussion with my Board on next year once we do reach that tipping point that we’ve advertised with Cote coming on, with the continual ramp-up of Odyssey, with REN coming on in several years as well. We have a nice profile, almost hockey-stick profile in our revenue growth over the course of the next little while, while our cost structure is now been quite well stabilized under Andrew’s stewardship over the last year since he took over as CFO. So, I’m very happy about the position we’re in, where we can sit down with our Board next year and say how — what’s the most effective way to start to share some of that return — free cash flow return with our shareholders?
Is it dividends? Is it buybacks? Are there other forms of returning capital to shareholders that helps our share price go up?
Joanne Jobin: Excellent. So I was going to ask you if you’d like to say a few more words to your shareholders before we sign off, but what you just answered is quite valuable, and I think shareholders appreciate your stance on everything. Great management team, great presentation as usual. We are now at the top of the hour. So we will end our Town Hall Forum. Thanks, everyone for tuning in. It’s been a pleasure to host you and we will see you on the next VID Town Hall Forum. Thank you very much, everyone.
End of Q&A:
