Aeris Resources Limited

Okay. Good afternoon, everyone. And thanks for joining quarter one, FY26 results from Ares Resources. Just a normal disclaimer. I guess once again, we had a good last quarter in FY25. And once again, quite a solid performance from the team on quarter one for FY26. This is just a standard, just talking a little about what we're doing going forward. Obviously, Triton this year is looking really strong, and we'll talk a little bit more in detail, but looking at around 25,000 tons, between 24,000 and 29,000 tons of copper from Triton. And again, we sometimes forget that Triton also do around 8,000 to 10,000 ounces of gold and around 250,000 ounces of silver. And, you know, that is quite a large, a big number in terms of credits on those two commodities, especially at these sort of prices. At Graco, we're forecasting in the guidance around 36 to 42,000 ounces, around that 40,000 ounces for FY26. And both these operations is delivered accordingly to those. And we'll touch on the projects as we move forward. I just thought it's appropriate to just re-emphasize this strategy. And clearly, when we go through the quarter results, we are basically doing exactly what we set ourselves out to do. So at Tritton, the pre-strip of the Marwambi pit is important and on track. We've invested around $25 million this quarter in that pre-strip. And we'll get into a bit more detail. Consolation approvals is underway and the timing for consolation starts. towards the first quarter in FY27 is looking strong. And, you know, it's the first time in a long time that we're putting around $20 million in exploration across the business. And it's really that focus on resource extensions and life of mine updates and increase in the life of mine. So both of Triton and Krakow is focusing on those. Golden Plateau is a exciting opportunity. We'll touch on that again. We have been saying for the last, three months or so that we are selling our North Queensland assets. Now we're running a process and that's getting close to completion and we'll up to the market as soon as that's done. But it was all around moving on non-core assets, but also that simplifying the business across the group. The JAG strategy is clear in our mind. It's reducing the care maintenance costs, focus on extending the mine life a lot of base metal targets available for us to go and drill. We've allocated $3 million in this financial year to test those eight targets. We'll touch on that a little bit going forward. But it just makes sense. Don't start the mine with less than 10 years. There is opportunities to create a 10-plus year mine life, and that's when we will start it. So the next 12 months is all about focus on those base metal targets and extensions of those. On Stockman, we finalized the Albion test work. We're busy updating the studies. We'll update the market within the next few months, and really then it will be what do we do next and where do we take Stockman. On the growth, focus on resource extensions, and you'll see through the presentation, you know, we are spending the money where we said we're going to spend it. And then on the balance sheet, we considered hedging. We did hedge 20,000 ounces at around $5,200 an ounce. It's much lower than the current price, but it was with specific reason. We knew that we will spend about $70 odd million in growth capital doing the pre-strip of the Mara pit and also a new Thais dam at Krakow. And that was to ensure that we can underpin those capital expenditure. So that's sort of just a summary. We've been saying this for a few months now, a few quarters. And we're clearly in line with what we're saying we're busy doing across the business. So at quarter one, once again, a solid performance against the internal plans, 10,300 tons of copper equivalent. Cost, as always, and capital across the group well managed and within our own internal target. Cash and receivables at quarter, $46 million. Cash has gone up, receivable slightly down. That is just timing of specifically Triton Concentrate sales, but a strong healthy position considering that we have put close to $30 million into growth capital. So it's a self-funded capital growth exercise. And when you talk about Marawambi Pit, you'll see what I'm talking about. Thank you for being good across the group. Triton, 6,100 tons of copper metal. We always said the first Six months is sort of in line with what we've done in the last quarter. But in the second half, when we get the volume of tons coming from the Mara Pit, we'll see a significant increase in production. On the drilling side, big focus on Avoca tank. As you know, that is our highest grade ore body. We did intersect mineralization 400 milliliters below the current mineralization. So obviously there's something there. A lot more work needs to be done to test it, and we'll show you some of the pictures which we've seen. Krakow, in line with plan, although they had a few days off with power, they still managed to achieve their budgeted and internal plans on gold production and all the sustaining costs. So quite a good outcome for the Krakow team. We keep on doing work around the Western Valley field and you keep on finding, as I always said, Krakow has got a two-year life and it's always had a two-year life and you keep on extending and finding more. And once again, we added 20,000 ounces into the mine plan for Krakow as part of the review we're doing using the higher gold price and also looking at the peripherals around old workings. Holden Platter is an exciting opportunity. I'm not going to spend too much time on it. There's a slide on it, which we'll talk. And then, as I said earlier, the North Queensland assets, that process is moving quite well and we should have something pretty soon. If you look at the cash flow waterfall, so Triton and Krakow, good operating cash flows, quite a lot of money. So about $30 million of that capital exploration was growth capital. So About 25 has been spent on the Mara Pit and another 5 million on the tailings dam lift at Krakow. So, you know, we are investing back in the business to set it up for FY26, second half and 27. And then the other bits and pieces around finalising the cash flow, the cash at bank up from 28 to 32. Touching on Triton, as I said, 6,100 tonnes But something not to forget, if you look at that by-product credit line, that's $15 million in by-product credits from gold and silver. If you analyze that, that's more than $60 million worth over 12 months. So sometimes we forget about the value of those. I talked about the strip, $25 million, and really the diamond drilling and the exploration is the big focus. we've allocated over $10 million to exploration for Triton in this financial year. And the guys are on track to achieve about 80,000 meters of drilling in FY26. So this is just two photos. I think the key takeaway there is Samaraput is going well. The real, and I keep on talking about this, first six, second six, and that slide clearly show you that By January, we'll be in oil at the pit, and you're going to produce more oil than what you can process. That line is the capacity of the mill around 1.8 million tons. So there will be about 900,000 tons, which would be stockpiled and will be processed in FY27. So that's quite exciting. This is the first time the mill will run at full capacity for a long period of time, and we have done it in the last quarter, so we know the mill can do up to 1.82 million tons, and that would be what we were targeting for the second six. Constellation, as you all might know, this is the future for Triton. The mine designs has come back with bigger open-cut mines than we originally thought. We talked about that before. That is already close to 8 million ton ore body at over 2% copper and nearly 0.7 gold, so a lot of value in gold as well. The idea is we will... We will shortly put a maiden reserve out on the open cut for Triton. We've done some work, interesting results. There is an oxide cap on this. Now, we are doing test work to see if we can treat those oxides through the process plant. Because if you do a heap leach on oxides, you don't get your gold or your precious metals out. While if you put it through the plant, you might get lower copper recoveries. but you'll get most of your gold and silver out if it's there. So there's some work on that. And if that works, that will even be a stronger economic valuation for consolation. Because once you do a heap leach, you need to do rehab and there's all sorts of different things. So if you can truck it to the plant and process it, it might be a much stronger case. So the current designs is, open cut and then you go underground. Currently, we're thinking to go underground in year two. So there will be a few years where you will do open cut and underground at the same time. And as we know, it's still open in depth and you can see some of the bed scratch has been down the bottom. So we're working through those. Environmental approvals and permits are all underway and in process with a target date of starting this in, as I said earlier, quarter one FY27. On the exploration side, quite exciting results for Evoca Tank. You can see some of those holes, those two holes we drilled intersected mineralization quite deep, another 400 meters below current results. We are doing some EM surveys down those holes currently and to see where do we target the next round of drilling. So that's exciting. As you know, Evoca Tank is our highest grade all-body tank. At Krakow, once again, although the ounces are lower than the first June quarter, that is on plan. They achieved exactly what we expected them to do. They mined at times slightly lower grade, but we managed to, even though they had an outage, they still achieved their internal plans for Krakow. The TSF lift, so we're putting a new TSF lift in that's on target. That's actually ahead of schedule currently. And you can see there that growth capital in that table of $5.5 million is the cost for that tailings dam lift. The exciting opportunity, we announced it the other day and we talked about it. Golden Plateau is an old mining area which has been mined in the 1930s at over 10 gram a tonne. A lot of voids has been left. A lot of areas has been left behind because they're lower grade. In the 80s, someone put an open pit mine over it and mine close to 3 million tons or close to 3 gram a ton. The mineralization extends another 150 meters below that pit and also extends to the west. So we just will launch in November. We launched a new drilling program to test those and define the opportunity. And if this comes and it works, this can easily become a four or five year mine plan just on open gate mining, which will be a huge improvement from the historical two years life, but it's always been two years for forever. So this can be a real strong case for Krakow in terms of where do we go going forward. We also did an airborne magnetic and radiometric survey across the whole tenement package. That work is still underway, but it's really trying to define the drilling targets in the southern rain field. As we said before, that's going to be one of the target areas for exploration at Krakow in the next three quarters. On the project side, just a high-level summary. JAG is on care and maintenance. We incurred $2.1 million. That was all per plan. We are planning to drop that cost significantly in the next three quarters. And as we said before, focus on testing those base metal targets. The whole thing is, you know, we assessed it and made a clear decision that we will start this mine when we got a 10 plus year mine life. And to us, that makes a lot of sense. There's eight base metal targets. We allocated $3 million in this financial year to test those. And obviously, if you find something, you will really draw more. But it's really saying, let's create life before we even consider restarting the mine. At Stockman, the test work is finished. The processing option is completed. We're busy putting up, finishing off the models, and we will then decide what's the best way forward for those projects. And as I said earlier, North Queensland assets divestment is close to a position where we can announce it. So in terms of the corporate side, you can see an increase in In the closing cash balance, receivables slightly down with just the timing of concentrates. And the closing cash position at 32 is a strong position for us, considering that we've invested significant amount of money into growth capital to set it up for the second half of FY 2020 of 26. At the debt level, still unchanged at $40 million, it was Washington sold Patterson. It's a $50 million facility drawn to 40. That is due and payable in August next year. So from the current thinking and current forecast and plans, that we should generate significant cash from the business to make sure we can deal with the salt patch facility at the time. I... I guess that sort of summarized the quarter. I'm more than happy to take questions. So if anyone wants to put up their hand, I will unlock and you can ask your questions. Hey, David.

Morning, Andre. How are you? Good.

How are you doing?