Coronado Global Resources Inc.

Thank you for standing by and welcome to the Coronado Global Resources fourth quarter investor call. All participants are in a listen-only mode. There will be a discussion of results from the CEO and CFO followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Andrew Mooney, Vice President, Investor Relations and Communications. Please go ahead.

Thank you operator and thank you everyone for joining Coronado's fourth quarter investor call. Today we released our quarterly report to the ASX and SEC in which we outline our production and sales volumes as well as other key information related to our safety results, coal markets and financial performance. A more detailed outline of our financial position and results will be released to the market on the 22nd of February with our Form 10-K and full year earnings release. We will convene another call then to outline in more depth our financial outcomes and forward plans. Today, I am joined by our Managing Director and CEO, Jerry Spindler, and our Group CFO, Gerhard Ziens. Within our report, you will see our notice regarding forward-looking statements and reconciliations of certain non-US GAAP financial measures. We encourage you to review these statements in conjunction with our other filings with the ASX and SEC. I also remind everyone that Coronado quotes all numbers in U.S. dollars and metric tons unless otherwise stated. With that, I'll hand the call over to Jerry.

Thank you, Andrew. And thank you everyone for joining our call today. Coronado Global Resources ended 2022 with record financial results, delivered record dividends to shareholders, and continued to maintain a very strong and secure balance sheet. The excellent 2022 shareholder returns are in part due to the improved market conditions year on year, but also due to the significant work undertaken by our board, management, and employees in progressing strategic initiatives that are coming to fruition I would like to thank all Coronado employees for their dedication over the past 12 months in helping drive our successes. Our record financial results and returns have occurred despite the impacts to production from considerable wet weather conditions in Queensland and global economic circumstances that have driven significantly higher inflation. Expectations are that weather patterns will improve in 2023 and global inflationary impacts will ease, which should translate to improved production and costs for our business. However, should these events, which are outside our control, continue, I remain extremely confident in our ability to address all challenges presented to the company. and in our ability to continue to provide enhanced value and returns to all shareholders. Before we elaborate on our results, firstly, I would like to provide an overview of our safety results. The safety and well-being of our workforce continues to be Coronado's number one priority. To that end, I am again pleased to advise that reportable rates in both Australia and the U.S. continue to remain below the relevant industry averages. In Australia, the 12-month rolling average total reportable injury frequency rate at the 31st of December was 3.92. And in the United States, the total reportable incident rate was 2.42. On a consolidated basis, the group's total reportable incident rate stands at 1.41. I am proud to confirm that the Logan complex finished 2022 with its best total reportable incident rate under Coronado ownership, reflecting a 25% safety improvement year on year. Additionally, our lower War Eagle mine, which is part of the Logan complex, achieved 1 million man hours for three years lost-time injury-free, which is a tremendous achievement. New and revised health and safety initiatives continue to be implemented across Coronado operations quarterly with a focus on training programs and hazard identification and mitigation. Turning to our operational performance, Coronado completed the fourth quarter with higher production volumes and stockpiles compared to the prior September quarter. Group run of mine coal production was 6.7 million tons, up 4%, and group saleable production was 4.3 million tons, up 4%. Group sales volumes were 4 million tons, down 4% compared to the September quarter. If we focus on Australia first, run of mine production from the Australian operations of 3.6 million tons was 21% higher compared to the September quarter. Similarly, saleable production of 2.8 million tons was 15% higher quarter on quarter. Sales volumes totaled 2.4 million tons, which aligned with the September quarter. Elevated coal mining activities per the plan in late December saw coal inventory levels at year end build to more than double those at the end of September, which should bode well for March quarter shipments. Improvement in these key metrics quarter on quarter build on substantial improvements realized in the September quarter, which were achieved despite the heavier December quarter rainfall. These improvements reflect the return on investments made in 2022 under the one Cura plan. While production improvements at Cura were noted quarter on quarter, the rain events in the Bowen Basin continued throughout the December quarter, which further hindered coal production. The town of Blackwater, the nearest town to Cura, received 290 millimeters of rain in the quarter, which was 112 millimeters higher than the prior quarter. 2022 rainfall levels for Blackwater have totaled 792 millimeters, which is substantially higher than the 10-year rainfall average for the area, but also 200 millimeters higher than rainfall levels in 2021. The consistent rainfall this year has been a key contributor to the lower production volumes and higher mining costs per ton. Despite the impacts of the Bowen Basin rain events, CURRA has executed its capital investments in the mine plan, specifically investments targeting dragline performance and waste movement, which have translated to improved performance. The mine successfully finished 2022 with waste movement totals exceeding 2021 levels. Further initiatives implemented in accordance with the One CURRA plan included the transition of four contractor fleets to a Coronado operator model at Cura North, mine planning improvements to decongest the operating pits and improve Cura's overall strike length, and the commencement of high-wall mining activities to liberate restricted coal under the overlaying conveyor. These initiatives are realizing tangible benefits for Cura that have helped mitigate the impact of rain and position the mine well for 2023. Capital growth plans at the current mine continue in accordance with existing expansion plans to reach 13.5 million tons per year by 2025. Planned growth activities continue with the completion of the current North Underground Prefeasibility Study, which are showing positive results. Additionally, a project occurred targeting the capture and use of coal seam methane as a diesel substitute has commenced. Drill contractors have mobilized the site and have commenced the drilling program. This project forms part of Coronado's greater strategy to reduce emissions from open-cup mining and reduce energy costs by investigating potential investment strategies into wind, solar, and gas projects. Today, I am also pleased to confirm that our current team continued to make significant progress in meeting our rehabilitation targets during the quarter by completing another 28 hectares of work. This brings total completed rehabilitation work in 2022 to 170 hectares of land the equivalent of 171 full-size football fields. Turning to our U.S. business, 2022 saleable production from the U.S. operations was 6.2 million tons, down 2% compared to the prior year. The marginally lower production year-on-year primarily stemmed from the rock intrusion experienced at the Buchanan Mine in April, which is now safely behind us in the mine plans. The production impacts from the rock intrusion were partly offset by improved labor availability across both Logan and Buchanan in the second half of the year and the commencement of the new Winifred mine at Logan in the September quarter. December quarter production and sales volumes for the U.S. business were lower compared to the September quarter, but aligned with plans. The December quarter is traditionally a quarter with lower labor hours due to Thanksgiving and Christmas holidays. Additionally, the operations and logistics chain were partly impacted by the severe snowstorm conditions in December. During the second half of 2022, consultation and engagement with various community and state local governments in the U.S. regarding our Tier 1 Buchanan Mine Plan growth mine growth plans continue to take place. The detailed work undertaken with local counties and the governor of Virginia, Mr. Glenn Youngkin, have resulted in Coronado securing grants and incentives to progress with our Buchanan expansion plans. In the December quarter, Coronado continued capital works at the Buchanan mine to expand its Rockwell storage space and commence construction of a second set of skips. Growth plan at our U.S. operations to produce 6.9 million tons by 2025 remain on target. On 17th of December, 2023, Governor Youngkin and other distinguished guests visited our Buchanan mine in a show of support for our growth plans to continue producing high quality met coal in Virginia, and in supporting the state and local communities in which we operate. During 2022, our U.S. business also progressed its reclamation plans by completing rehabilitation works on 52 hectares of land across Buchanan, Logan, and the Greenbrier operations. Last week, we notified the market of my intention to retire from my position as Chief Executive Officer of Coronado. I'm very pleased to announce and congratulate Douglas Thomas on his appointment as Coronado's next CEO in accordance with our plan succession process. I feel a deep commitment and endless gratitude to all employees, shareholders, and customers of this company having been involved with Coronado since its inception. its inception. This is a significant personal decision for me, but one I am very comfortable making given my high level of confidence in the succession plans we have in place and in Douglas Gerhard and the rest of the Coronado team. Douglas has been the company's Chief Operating Officer for Australia since September 2021 and has more than 25 years experience in the mining industry, including as Managing Director and Chief Executive Officer of TEAS, an affiliate of the CIMIC Group. Over the coming months, as I continue in my role as CEO, I will work closely with Douglas to facilitate a smooth transition. Following my transition to my new role of Executive Chair, I will continue for a period to support and guide Douglas to lead the board to ensure our business continues to evolve and grow. I'll now hand over to Gerhard to talk to our financial position and market outlook.

Thank you, Jerry, and good day, everybody. As Jerry mentioned earlier, 2022 was a very strong year for our company in which we delivered record revenue, EBITDA, and dividend results while continuing to execute our capital management strategies. Full year 2022 group revenues were at a record level of 3.6 billion U.S. dollars, reflecting a 66% increase on the 2.1 billion of revenue generated in 2021. Met coal revenues comprised 95% of total coal revenues in 2022. December quarter revenues were $717 million, down 18% compared to the prior September quarter, as we saw met coal pricing fall during the quarter. The group realized price per ton of Medcor sold in 2022, which is a mixture of FOB, FOR, and domestic pricing was $266 per ton. And I highlight here again that this is a blended price as we sell a lot of our core on an FOR basis. In December, Coronado completed the payment to shareholders of a 13.4 cents per CDI unfranked special dividend in total $226 million. This payment to shareholders was made from available cash and in accordance with the Coronado's distributions policy to distribute 6,200% of free cash flow. This brought total dividends paid in the calendar year to $700 million, which is a record for us. During 2022, we also made significant headway in reducing our debt obligations. During the year, Coronado repaid $73 million of debt and finished 2022 with a gross debt position of $242 million, down from $315 million in the prior year. Strong cash flow generation in 2022 saw us consistently maintain a strong balance sheet and healthy liquidity. As of end of December 2022, the company's net cash position was $92 million, comprised of a closing cash balance of $334 million, and senior secured notes totaling $242 million. We had available liquidity of $434 million at year end. Turning to capital expenditure, 2022 capex for the group was $185 million, double the levels from 2021 CapEx was higher given the group's determination to invest in capital works while pricing remained elevated to help secure future production rates from the Australian and U.S. operating segments. And in relation to our cost, 2022 average mining costs for the group were $88 per ton, and the higher mining costs are due to continued inflationary pressures, wet weather events resulting in lost production at cover, and the completion of planned major maintenance activities at Buchanan and Currah in the first half of the year. And we will officially release our full year suite of financial results, including EBITDA and net profit positions to the market on 22nd February with our Form 10-K. On this date, we will also provide market guidance for production costs and capex in 2023. So looking at coal markets, The benchmark Australian premium low oil hard coking coal FOB average index price for the December quarter was $278 per tonne, up from an average of $250 per tonne in the September quarter. The US East Coast low oil HCC average index price for the December quarter was $273 per tonne, up from an average of $259 per tonne in the September quarter. The short-term global economic environment steel demand outlook remains subdued, driven by the ongoing conflict in Ukraine, the resulting energy crisis in Europe, and stubbornly high inflation rates. However, in 2023, Coronado expects met coal prices to remain above long-term historical averages, supported by the elevated thermal coal prices, the removal of Russian met coal from key markets, and improved steel demand in the second half of the year. Expectations of economic stimulus and the resumption of Australia-China coal trade are high following the Chinese government's reversal of its zero-COVID policy. Resumption of coal exports to China from Australia is significant due to China's position as the largest global steel producer and the proximity, large-scale and high quality of Australian met coal. And we expect Australian met coal imports to China to return in 2023 and displays lower quality and higher cost Chinese domestic or North American production, particularly due to the Chinese steelmakers in the southern regions of China, where significant sea freight advantages for Australian Metco exists. Demand for Coronado's U.S. Buchanan brand is expected to remain strong in China, given the low ash, low sulfur characteristics of the coal, and long history of reliable and consistent supply into the Chinese market. We anticipate that the resumption of Australian met coal imports into China will improve market dynamics of oil, as well as increase competition for Australian coal, and will likely push up C1 coal prices in the short term. Our met coal remains in high demand, with customers' offtake remaining firm, and annual contracts with long-term customers being renewed for both Australian and US calls. Our North American annual contract negotiations for 2022 are now complete and active. Coronado expects to realize a volume-weighted average price across all grades of Metcoil, inclusive of thermal switching, of approximately $201 per metric ton, FOR basis, reflecting a price that is $14 per metric ton higher than prices contracted in 2022. So these fixed price met and thermal tundish contracts cover approximately 40% of anticipated U.S. production and about 90% of anticipated U.S. mined cash costs and royalties in 2023. So given higher index prices in the December quarter and into January combined, With the commencement of Coronado's 2023 North American higher-priced annual contracts, we anticipate Medcor price realisation in the first quarter of 2023 to be higher than in the fourth quarter. I now hand back over to the operator to take questions.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Paul Young with Goldman Sachs. Please go ahead.

Thanks for that. Morning, Gerard Gerhard. Happy to be here and hope you both well. First question is on Curra and just the impacts of the flooding. I mean, I guess the first point is, you know, every operator of the Bowen Basin is being impacted by the flooding. And, you know, history shows it's great for price and ultimately great for revenue. But one question I did have, around CARA was that just on material movements, you didn't move more in 2022 than 21, which is a good result, but is there any catch-up required in the first half on material movements at CARA for first half 23?

Paul, we're fortunate in having Doug on board on this phone call. I'm going to ask that he answer those questions directly.

Thanks very much, Gerry, and good morning, Paul. Paul, no, we've got a mine plan that we've been diligently executing as a team as we call not just the mine plan but the execution of all these activities of taking Currah up to where we have aspirations for the asset, and the mine plan has been diligently stuck to the The importance of it is compliance to plan and the discipline that we've put into the operation. So quarter one this year, it will be executed as per the execution last year. Obviously, the wet weather is beyond our control. It's unprecedented, and the points you make are very valid, particularly around pricing. Our team has responded very well in the lessons learned last year, the ability to manage water, move water, and keep operations clear so we can continue cold flow to the prep plant. Also in general, the stockpiles we built late December have boded well for this quarter as well to make the mine more resilient to the start of year, end of year, normal weather patterns. And that should serve us for shippings.

Right. Thanks for that, Doug. And congrats on the appointment, by the way. Maybe moving on to a couple of questions on product mix and also the market, maybe for Gerhard, just on the market. Yeah, I mean, absolutely, China agree that China, if they start buying Queensland met coal, the opposite should play out. What we saw a couple of years ago should be positive for Queensland and arguably negative for the US considering that Europe's steel production is still pretty weak at the moment. The questions I just have here, Gerhard, is one, what inquiries have you had from China so far to buy current met coal? Will it impact Buchanan sales volumes? I know the Chinese like Buchanan, but will it impact that, your sales volumes to China? Do you think you might see a bit of an unwind of Buchanan price relative to Queensland?

Yeah, thanks, Paul, and Happy New Year. Listen, I think, first of all, yes, we have received some inquiries. And from a number of parties, not only the officially approved parties, And I hear even, and that's not us, but I hear even that one skill producer, Chinese skill producer bought a cargo or two. I think we have to be mindful that at the moment we don't see a lot of movement activity in the market simply because we have the Chinese New Year. And as I said last week and the week before, we probably don't see a lot of movement in January, I think, if China comes back. to the market, then we need to see more approved steelmakers, you know, getting the permission to import. And we will see that probably in February, March, you know, evolving. The one thing I highlighted also is that, you know, all Australian producers, not only us, we are all currently in negotiations with all steelmakers, you know, in Asia particularly, but also Europe. And these negotiations conclude in March. So that means, most likely, Chinese steelmaker won't engage in these negotiations, won't get contracts with Australian producers, which also means they're allowing spot hunts, which also means that we see a little bit of a slower ramp up here in 2023, you know, if it happens. So coming to Buchanan, as I said in my outline here, Buchanan remains a very popular product because of its characteristics. It's a very popular product in China, but it has become incredibly popular in Europe as well. So for us, we look forward to both. In the end, what this means when China opens its gates to Australian coal, there won't be as much in 2023. There will still demand for high-quality American coal, and Buchanan is one of the most popular coals out of the U.S. into China. So we look forward to that.

Yeah, thanks for that, Gerhard. Last question, just on... on your product mix, a sort of thermal coal percentage jumped in the quarter on the Aussie domestic sales. I presume that was the timing of deliveries of thermal to the Stanwell power? Yeah, exactly. Okay, and is that usually fourth quarter, wait, is the fourth quarter, Gerhard?

Not really, but it was just heading this quarter. So look, I mean, the From memory, and I need to check, but from memory, the overall thermal proportion jumped from 3% to 5%, so we are still in a healthy space here, and also we are quite happy where it is.

Okay, great. All right, that's it for me. Thanks, Jens. Appreciate it.

Thank you. Your next question comes from John Schultz with Macquarie. Please go ahead.

Hi, good morning, all. Just a quick one on Buchanan. The expansion plans there, could you just give us some color on what needs to be done to get to the 6.9 million ton level you flagged in the release?

Thanks. Going through the general strategy of the expansion, Buchanan is a mine that is bottlenecked by its shaft capacity and the skip hoist capacity of taking the coal outside the mine. Also, on the inventory capacity once outside to accommodate the shipments to Hampton Roads, we're expanding both, and those are the principal focus of the expansions we're doing. We'll spend money on the prep plant at the latter part of the program, but right now the focus is on utilizing an existing shaft for additional skip hoist capacity and expanding the and rockwool stockpile and cleanwool stockpile yards on the surface.

That makes sense. Thank you.

Thank you. Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Lachlan Shaw with DBS. Please go ahead.

Morning, Gerry, Gerhard and Doug. Thanks for the update. Just a couple, and just picking up on Paul's comment about China. So, given the split between contract terms, spot volumes, obviously China's New Year at the moment, and a China-Australia price spread up charge, which is not super conducive to more imports into China. Now, what's your expectation in terms of how quickly or slowly we might see more tons going into China from Coinbank?

Yeah, again, hi, Lachlan. Happy New Year. So again, as I said before, I think it will be a slow ramp up. There's probably a very low probability of contracts as we all negotiate our contracts, all Australian coal producers negotiate the contracts right now. And the new contractual year opens on 1st April. China is in Chinese New Year right now, so not a lot happening between now and February and then going into March when we conclude these contracts. So China will rely entirely on spot tons that are available or not available in the market. So last year, 2022, we didn't have a lot of spot tons in the market available simply because of wet weather events out of Australia. Hopefully that improves in 2023, but even then China will rely on spot tons. So I think it will be a slow ramp up. If you go back in history, China used to import about 80 million tons out of Australia of coal, 50-50 thermal and met coal, so let's say 40 million tons of met coal. Of that 40 million tons, 3-7 million tons were semi and PCI. So we talk about hard cooking coal 33 million tons. That was the best, you know, the kind of before COVID and before embargo, 33 million tons per annum out of Australia, hard coking coal. So you can already say the semi-soft and PCI don't come back into China out of Australia because Chinese dealmakers can procure that at a significant discount out of Russia. So then you work back from the 33 million tons, I guess, at best this year in 2023, China imports maybe up to 20 million tons of half-cooking coal out of Australia at best.

Yeah, okay. That makes sense. Thanks for that. Maybe just a follow-on, a couple of follow-ons, actually. So you touched on Russian exports. Are you seeing more interest in the market right now, particularly from Japan, but maybe Korea and Taiwan as well?

to replace um russian material which which is not going to get rolled over into the next japanese financial year yeah yes we have been seeing that for a while now yes absolutely i mean most japanese uh steel producers have a self-imposed embargo on russian coal and and we see the same amount of korea but definitely we have been seeing that for a while

Yep, makes sense. And then final one. So just in terms of Queensland and the weather, obviously been very impactful. The climate outlook is for La Nina to gradually normalise heading into mid-year. In a scenario where you did start to see a more favourable weather mix, how do you think about how long it might be or the ability for you guys to start to sort of push more material out of Curragh, given that we do hear stories about ongoing labour shortages for particular skills?

Jerry, I'll step in with Ben Currer. Our mine planning is based on long-term wet weather pattern averages. We obviously consider short-term impacts, just like you've highlighted. We're also seeing an improvement in the wetter patterns for this year, which bodes well for our increased forecast out of Currer's production. So that's in our plan. You mentioned labour as well. We've been very fortunate with one of our strategies of insourcing some of the work, so the four fleets that we now self-perform. We managed to secure workforce through last year at the right price in the market and a very stable and good workforce. And with our contracting partners, we see stability through them through the rest of this year as well. So we're not exposed in Australia to any of the labour risks that you may be flagging.

Understood. That's very clear. That's all from me. I'll pass it on for now. Thanks again.

Thank you. Your next question comes from Glyn Lawcock with Baron Joey. Please go ahead.

Oh, good morning, Jerry. Just on the weather, I mean, if I look at January up in Blackwater, you've actually had 135 mils this month, or more than three times January last year, year before, so well above the average. Any impacts so far, or is the stockpiles you've built coming into the month being very good and handy to offset that?

Again, let me turn this one over to Doug, who has the first-hand knowledge. Doug?

Glenn, exactly. You've gone to the nub of it. What we didn't have a benefit of through last year just because of the hindrances of the wet weather was a form of buffer. The work put into the mine plan and the execution of the plan late last year has offered us that opportunity in anticipation of an increased wet in the first quarter. that's been used to buttress that we can continue flow of coal to the prep plant while operations have been hindered by the unprecedented weather. So I'm pleased to say the plan has delivered and we're all looking for the clear skies in Queensland to come. I think the whole industry at this stage is looking to that.

All right. So there's been no damage or anything as well as a result of this heavy rain in the last week?

To our operations, fortunately not damage in the form that isn't recoverable in normal operations, no.

Alright, that's good to hear. Jerry, just turning to the US, I note that your comments now you're going to be putting 40% of your US production into the domestic market up from about low 30s last year. I would have thought better margins offshore or am I missing something?

No, not really. First of all, we got a better price on the domestic market than we thought we would. Secondly, most of what we sell domestically is high vol. So when you start looking at where the high vol would go into Europe and what the market is for high vol, given the Ukraine situation, given the markets in Europe, Frankly, we don't expect that HIVAL will do as well in Europe long-term over the rest of this year as what we've already secured in the U.S. So while 40% and a slightly higher margin does go domestically, that improvement is almost entirely in the HIVAL section, but Canon is free to go internationally as it always has been.

Okay, so it's predominantly more your Logan type call, is it? I assume then, obviously. That's right. And then just a final question, just on the management changes. I mean, the executive chairman role, not something we see all that often in Australia. I mean, why the decision for the executive chairman role? I mean, how long are you thinking of sitting in that position for? And how do you think about the demarcation of responsibilities then with you taking the executive role and Douglas moving into the CEO role and then just while you're answering that maybe sorry and just you've got Gerhard now taking on strategic investment activity what does that mean for 23 you know after I guess two unsuccessful attempts in 2022 I mean what's 2023 hold for us thanks well thank you first of all the this is all a matter of transition I expect that

the executive chairman role will only enhance the ability to transfer responsibility and authority and do so cleanly. So that's purely and simply the reason for that. Beyond that, I don't really want to get into board dynamics and all of that, but probably will a little bit later at the AGM. I think that answers the

the main question did I cover that or yes I mean it's not a you see it as a you're being involved as more to help with the transition does Douglas end up going on to the board then as managing director at some point or is just CEO he will as managing director yes so it's a managing director CEO title not just the CEO title okay and you're your position as executive chairman has probably may not, you'll give us more information at the HMS to the duration of that, et cetera.

Yes.

Okay. Understood. Understood. And then just your focus as a company then with Gerhard's new extra hat on, you know, does that mean we can expect you to be looking at opportunities more actively this year as well?

I think that's right. My role is largely as a liaison between the various shareholders and to make sure that management, the shareholders, and the dynamics of the board intersect smoothly for the time. So some of that will involve looking at the Looking at the opportunities that may exist, the new opportunities, they'll always come up. I don't know. We have nothing on the slate now. And frankly, as the country and Western song goes, sometimes your greatest blessings are unanswered prayers. So I'm not sure that we're unhappy about the way things have turned out.

No, I appreciate that. And now, I guess, both thermal and MET are on the table now when we look forward into this year and beyond.

I'm sorry?

I guess both thermal and metallurgical coal are on the table.

We continue to focus on MET coal.

Okay. Thanks very much for your time.

Thank you. Your next question comes from Paul Young with Goldman Sachs. Please go ahead.

Yeah, thanks again. A few follow-ups. Thanks, guys. Maybe just continuing on the discussion around opportunities through the year, just to ask, do you see opportunities in the southern Bowen Basin this year with respect to acquisitions, or do you think the opportunities are equal opportunities in the U.S. as well?

We're seeing opportunities in both sectors. We have the ability to try and pick the best that we can find, and we have the unique ability to confidently operate in both jurisdictions. So we're seeing opportunities both places.

Yeah, great. Thanks, Jerry. And then blue sky mining versus underground, I mean, is there a preference?

Not really. Again, we have the ability to do either and do so quite comfortably. You know, I'd like to say that underground mining or surface mining is simply the same as underground mining with good top and great ventilation. But people have also pointed out that, you know, you're not faced with rain in underground mines. So we can balance attributes as we wish and as we look at the opportunities that come up.

Okay. Thanks, Jerry. And then maybe just on the topic of underground operations, just the comments on the current North underground pre-feasibility study works and showing positive results. Listen, no doubt you'll outline your development plans and CAPEX, of course, with the four-year results, but just interested in anything you can share around what the statement positive results actually means and is the underground potential underground development at Curra North would that grow Curra further beyond the 13.5 million tonnes per annum conceptually?

It remains to be seen it's an economic decision right now we're focused on ensuring the ability of the reserve to handle the equipment that we might put in it, an evaluation of the quality of the top and the bottom, the seam thickness, and the quality of the coal, et cetera. Whether this does, in fact, increase our total production or replace some surface production relies upon a cost consideration and the quality of the coal and its washability, and we're not through with all that yet.

Yeah, got it. And Jerry, we're going to get the pre-feasibility PFS results with the 2022 financial results?

I can't guarantee that, but you will at some point later this year.

Okay, great. All right, that's it for me. Thank you very much. We'll chat on the full year results. Cool.

Okay. Thank you. There are no further questions at this time. I'll now hand back to Jerry for some closing remarks.

Well, thank you to everyone for participating in the call today. Should you have any follow-up questions, please reach out to our investor relations team. Thank you.

That does conclude our conference for today. Thank you for participating. You may now disconnect.