Joe Lambert: Yes. I think it’s from — we get that from industry numbers in Australian mining industry and how much work is contracted out and the coal mine data, it’s just a huge marketplace. There’s a much higher propensity to contract mine there. The 2 main operations we’re on, we’re the only operators there. The client is not operating next to us. It’s just a different marketplace. It’s a huge resource industry, very similar to Canada. But the big separator is that the producers there allocate their capital more towards producing an extra ounce or a pound or finding the next deposit than they do on owning yellow iron like we do. And so it’s just a much bigger, stronger marketplace. And as I discussed earlier in my slides, before my Mitch McConnell moment there, I was talking about the coal marketplace where there’s 50 mines of which we’re only on 6 of them. It’s just a great opportunity, great marketplace there, Max.
Maxim Sytchev: Okay, that’s super helpful. And then one last quick question for Jason, if I may. In terms of the rollout of ERP, do you mind providing like some milestones in terms of when it should be sort of up and running and how you’re testing this and so forth?
Jason Veenstra: Yes. So, we — obviously, the go live date is obviously the most important date. So, we’ve circled September 1 as our target. Project team is fully engaged at the moment and they’re at peak capacity currently. So it’s pretty exciting, actually, for our organization to be going through an ERP like this, rolling out what we do here there has generated a lot of excitement. So, if all goes to plan, it should be pretty seamless. And then, yes, we’ll start to see, hopefully, some margin improvements post go-live and that would be seen more in 2025.
Maxim Sytchev: Okay. And sorry, just a clarification, are you kind of capitalizing expensing? What are you doing from an accounting perspective?
Jason Veenstra: Yes, we would capitalize but it’s not big dollars. We’re talking in the $1 million to $2 million range for this. We’re doing really a cut-and-paste here or copy-and-paste. It’s not — we’re not using a lot of external resources for this. So, it’s not what you see in a typical ERP implementation.
Joe Lambert: Yes, I would add, Max, that MacKellar was actually in process of bringing this, actually this exact same system online at the time when we purchased them. So, they really had already started progressing this ERP transition even before we bought the company.
Operator: Next question comes from Aaron MacNeil at TD Cowen.
Aaron MacNeil: It looks like you’ve got a thermal coal mine contract that comes up for renewal in 2025. Do you see any regulatory hurdles or broader issues with demand for thermal coal that might prevent your customer from giving you that similar 5-year contract extension that you just obtained from the met coal customer? And ultimately, I’m just trying to understand how you’re thinking about the outlook for met coal versus thermal coal in Australia.
Joe Lambert: From the industry information I’ve seen, I think all the coal, particularly in Queensland, is a very strong, long demand. I don’t think there’ll be any issue in renewing contracts at these coal mines. Most of them are already — they’re all permitted already and they’re generally permitted for multiple decades in advance. There’s no re-permitting. We don’t know of anyone that’s got to go back out or has that kind of risk in our current operations. Queensland, I think the numbers both thermal and met is about 90% of Queensland coal is export to an extremely strong and high demand in Asian, Indian marketplace. It predominantly competes with Indonesian coal and it’s far superior in its efficiency and its burn and its price per BTU and the cleaner burn it has.
So, I don’t think we’re going to see any impacts in that market. Although that carbon footprint is going down, there’s more and more electricity requirements. And from the numbers we see in the — like the Queensland Coal Mining Associations and that, they see strong demand going into the next 2, 3 decades.
Aaron MacNeil: Makes sense. So, I mean, fair to — I don’t want to put words in your mouth here but we could potentially see a renewal in the near term on that site as well?
Joe Lambert: Yes, for sure.
Aaron MacNeil: One more question, it’s probably for Jason. Are the costs to move or revenues associated with the move of assets contemplated in the 2024 guidance? Like you mentioned in the prepared remarks that there’s the potential to move the smaller assets, either within Canada to Australia.
Jason Veenstra: Yes, they are. We would expect that shipping costs would be capitalized through the MacKellar Group, given the low cost that’s on our balance sheet for the actual cost of the units, for units that are shipped. And the revenue contemplated in Canada does have some allowance for units coming out of the region. So, it is included in our guidance and — but we haven’t laid it out specifically in our forecast.
Operator: [Operator Instructions] Next question comes from Kevin Gainey at Thompson Davis.
Kevin Gainey: Congrats on the Q4. Maybe if we could start on the bid pipeline in Australia, you guys have tendered — well, a pretty big announcement recently. Could you go into more details about that specific and what you’re thinking as you look forward?
Joe Lambert: Into that bid in particular? Is that what you’re asking?
Kevin Gainey: Yes, yes.
