Haytham Hodaly: So on Cangrejos, the exploration permits have been received. The EIA is obtained for the exploration phase and the environmental baseline studies have been compiled. The exploration investment protection agreement has been signed. But they still need to enter into construction and production agreements and Lumina need to undergo permitting for those operations. In terms of everything that’s happening right now with regards to the congressional changes that we’ve seen there. I think at this point in time, it doesn’t really apply to something like Cangrejos because it’s so far out into the future. I think when we look at our profiles, we’ve got anywhere between near term is one to three years medium term, three to five and longer term is five year.
This definitely falls into the five year to ten year profile. So there’s going to be a lot of changes in Ecuador between now and then, and we expect a lot of the issues that are now in the limelight to have been resolved by then.
Martin Pradier: Good. Thank you very much.
Operator: Thank you. Your next question is from John Tumazos from John Tumazos’ Very Independent Research. Please ask your question.
John Tumazos: Thank you for taking my question. Following up on Martin, how many years out is Cangrejos of Lumina gold? Is it — did you say five to ten? Or you be precise five years, six years, seven years, eight years? And more broadly, are you going to target projects that are more than several years out, which is the hardest to finance for the emerging companies, given 5.5% short-term interest rates, tough market for gold stocks, etcetera. It’s a great opportunity.
Haytham Hodaly: Yes. Thanks for the question, John, to answer your question, Cangrejos falls into the latter part of this decade. It’s probably somewhere around 28%, 29% is when it would actually kick in based on the current profile. We are — the way we structure our transactions is we actually make stage payments, along with the rest of the capital that’s being infused into the project. And for like what we call those we call those early deposit structure. So we commit very little at this point in time and it gives the company a lot of time to actually go back and actually raise the capital, whether it’s debt equity private equity stream, etcetera. So we work with our partners to try and help them get across the line. And I think the longer-term projects really our view on where we think commodity prices are going longer term.
And we do think assets that contain both gold and copper, not only Cangrejos, which is primarily a gold asset with about 20% of the revenues coming from copper will start to get a lot more attractive, not just to the diversified base metal companies, but to a lot of the pressure most companies, as you’ve seen them go into base metals of late.
Randy Smallwood: And I think it’s important to just have a cross-section of investments near term and longer term. This isn’t an industry where we make acquisitions all the time, right? You have to be sensitive to where you think you are in the marketplace. But right now, we do see good opportunities in that space and good value, Cangrejos is a project that we’ve admired for quite a while as it’s been advanced to move forward. We think it’s going to be a good core producer to us. But — just to reiterate what Haytham just said, we tend to look at things in sort of near term and then one to five years and then five to ten, that’s how we give out our production guidance. And we don’t have Cangrejos contributing in our first five years, but we do have it — we expect it to be contributing in our 5- to 10-year period.