Greatland Resources Limited

Thank you Ashley and welcome everyone to the September 25 Greatland quarterly results call. Joining me on the call today is Chief Operating Officer Simon Tyrrell and Chief Development Officer Rowan Krasnoff. I'll go through the deck briefly and then we'll open it up for questions and answers. And as I slide through the deck, just note the disclaimer, but I'll leave people to review that from our website. So moving to slide four. During the quarter, we produced just under 81,000 ounces of gold plus 3,400 tons of copper for the quarter. And we achieved this production whilst consolidating the significant improvements we've made in safety since Greatlands acquisition of Telfer. In terms of the full year production guidance of 260 to 310,000 ounces, that remains unchanged. Of course, we're really pleased with such a strong quarter, but I do note there's a slight weighting of our production outcome towards the first half of the year. Yeah, pleasingly, I think one of the highlights of the quarter was the all-in sustaining cost came in at $2,155 per ounce Australian. This is a really good outcome. And it's a reflection of our continued focus on cost control whilst we continue to participate in really strong gold market pricing. A highlight for the quarter was the gold recoveries at 88.6%. This is the highest quarterly gold recovery since FY 2010, which is a great credit to Simon and the team at Sight. During the quarter, we realised a gold price of $5,277 per ounce. You know, Greatland fully participates in the market price of gold. Greatland, as you're aware, you know, adopted an approach of purchasing put options. This provides us a measure of insurance whilst allowing us to fully participate in the upside of the gold price. This approach has worked really well, and purchasing put options are the path of least regret. In terms of cash flow, this quarter delivered good revenue, driving an operational cash flow of just on $284 million. And you saw a further cash build up to $175 million for the quarter. Remarkably, just three quarters, Greatlands has generated $750 million cash at bank with no debt. This can be compared to the acquisition price of $541 million. We achieved a payback on the acquisition inside of six months, which is just a splendid outcome. In addition, we're investing in the asset. In FY26, we're undertaking a record amount of drilling at Telfer. That's off to a strong start. We've got eight ResDes rigs plus another two on regional exploration, but we did more than 53,000 metres drilled in the quartering resource development. Plus, together with this, we maintain significant stockpiles at surface containing over 300,000 ounces plus over 12,000 tonnes of copper in that same volume. I'll now pass across to Simon Tyrrell to walk through the operational slides.

Thanks, Sean. As Sean mentioned, there's a good quarter operationally and we'll go through some key details. So on to slide six. We'll start with West Dome open pit. We've returned to a two-digger mining plan this quarter, and open pit total material mined has increased quarter and quarter to 5.9 million tonnes, with ore sourced from Stages 2 and 8 and Stage 7. We have commenced reporting mined tonnes to dump leach to provide further insight to the operation, and this quarter, 274,000 tonnes of ore mined went to dump leach. Stage two and eight contributed the bulk of all mined, and as it's at the base of the pit, very low strip ratios of 0.1 were achieved. Stage seven growth stripping continues with 3.7 million tonnes waste mined for the quarter, a strip ratio of 7.2. It should be noted that this is relative to the overall stage seven design strip ratio of 1.1. During the quarter, reviewed a short-term metal pricing strategy and coupled with an updated cost structure and high recoveries, this has identified up to 2 million tonnes of additional low-grade material within the existing pit designs in FY26 alone. This will give us some optionality for mill feed further in the year. The open pit fleet renewal program is in full swing with orders for a Caterpillar 6060 excavator two Komatsu WA1200 front end loaders and two Caterpillar 793 dump trucks being placed. The first two of a planned 12 793 truck rebuilds have just returned to site this weekend. Now that we have confirmed delivery schedules for these equipment, we will look to include the productivity improvements in the open pitch schedule moving forward. Resource growth drilling progressed at the tighter 25 by 25 spacing whilst infill drilling practices are in the process of transferring from blast hole sampling to reverse circulation sampling. This will provide additional resolution in the grade control modeling as the blast hole sampling provides one sample over 12 meters depth whilst the RC sampling will provide an assay every two meter interval. Moving on to main dome. Underground ore mined was 20% above plan at 0.28 million tonnes and mostly from A Rees, Ray and Eastern Stockwork Corridor. Underground development was again solid with 1,325 metres of development, including 368 metres of growth capital in the second development drive to the West Home Underground to support exploration activities. Moving on to slide seven. Moving to processing operations, there are a number of highlights in the quarter. We milled 4.7 million tonnes in line with plan and recoveries were exceptional at 88.6% recovery for gold and 81.3% recovery for copper. As Sean mentioned, gold recovery was the highest quarterly recovery at Telfer since 2010 and this was achieved primarily due to operational focus on improving the pyrite flotation and leaching circuit performance. where maximising the sulphur flotation recovery in the CIL utilisation directly relates to an increased gold recovery. We are increasingly confident in maintaining high recoveries for FY26 based on the operational experience to date. Together, this delivered nearly 81,000 ounces of gold on a similar grade but lower tonnage to last quarter. On to ROM stockpiles. This quarter we processed 2.5 million tonnes of ROM stockpiles with 4.5 million tonnes remaining at quarter end. These are expected to be largely utilised by the March 26 quarter. In terms of grade, this quarter's stockpiles performed in line with the assumptions that our FY26 guidance is based on and this gives us confidence that our FY26 guidance adequately calibrates for these stockpiles. Some key projects progressed during the quarter. The largest planned shutdown of the year occurs in July and we've taken the approach to progress works that will have benefits past 2027. For example, we have commenced the gas turbine maintenance program that will refurbish all gas turbines over a three-year period. Another example is we have commenced a structural refurbishment program which will extend the infrastructure use into the following decades. These are examples of the confidence we have in delivering a multi-year life mine plan mid next year. We don't talk much about the dump leach and don't intend to moving forward, but it is a modest but efficient contributor to production at approximately 4,000 ounces for the quarter. A pipeline replacement project is underway that will extend the dump leach operations through to end of mine life. TSF 8 Stage 3 lift construction is progressing well to schedule and expected to complete it in the December quarter. This lift will provide tailings capacity until the March 27 quarter. When we acquired Telfer, there was very little scheduled float on tailings capacity. This was one of our key risks, so getting ahead of this in terms of capacity was an important de-risking of our operations. TSF 8 Stage 4 construction is scheduled to commence in the fourth quarter of this financial year. Moving on to slide eight and costs. As Sean mentioned, we achieved an all in sustaining cost of $21.55 per ounce below the low end of guidance and this sets us up strongly to deliver on this year's target. Cost control continues to be a strong focus and we've essentially kept costs flat over the preceding three quarters. As a result, with an average realized Sale price of $5,277 per ounce, we have achieved greater than 100% margin, an excellent outcome as we prepare for our future investments. Some of the key details, site services costs were in line with plan. This quarter will be a high watermark for site services as there were one-off costs during the quarter, such as $4 million allocated to TSF7 remediation. Mining costs of $65 million were below plan. The quarter-and-quarter increase was due to a higher proportion of oil mined relative to waste in Stage 7, which is capitalised cost. Processing costs of $80 million were in line with plan, with the quarter-and-quarter increases largely due to the costs of the planned maintenance program in the processing plant and power station discussed previously. Sustaining capital was $18 million and below planned due to delays and timings of costs for projects and lower on a quarter basis overall. due to the completion of the TSF 8 Stage 2 lift last quarter and the allocation of Stage 3 lift to growth capex this quarter. Moving on to slide 9. This slide recaps the growth initiatives and as you know FY26 is a significant year of investment at Telfer with a view for a multi-year life of mine extension. Our growth capital program at Telfer is progressing well and in line with plan at $70 million spent across the TSF8 Stage 3 lift, the West Dome Stage 7 open pit growth stripping, the underground development and the mining fleet renewal program. Spend is tracking to our four-year guidance of $230 to $260 million. And at Havron, we spent $10 million on feasibility study costs and early works. The early works included commencement of installation of a concrete tunnel connecting the portal to surface. This will eliminate risk associated with high rainfall events often seen in northern WA. The blind board design and fabrication continued with the cutter heads ready to be delivered to site. Our record resource development drilling program of 240,000 meters is well underway with 53,000 meters across 711 holes Drilled ahead of plan, which Sean will speak to now. Over to you, Sean.

Thanks for that, Sam. Look, Telfer is a big site. So I'll just do a brief around the grounds of the Telfer mining area, just focusing on that drilling program. So looking at slide 10, we start with the West Dome open pit. During the quarter, we completed 25,000 metres of growth drilling and 16,000 metres of resource conversion drilling. And we're taking this to the 25 by 25 metre spacing, which we implemented basically at the point of acquisition to give us that improved confidence in the resource. The stage seven extension is the immediate focus for us. This is intended to provide Telfer's base load fee through FY27 and FY28. So that's the immediate target. But then we move into the stage two extension, and this is the key area beyond FY28. And it's worth taking a moment to pause here and just look at that slide. When you look at just the volume of that opportunity, it really stands out. In terms of volume, it's a multiple of the Stage 7 two-year opportunity. And at the present gold price, we think it's just an exceptional opportunity for significant life extension at Telfer, and that continues to be our focus. During the September quarter, we've actually exceeded plan in terms of that open pit drilling. That's put us ahead of schedule on the Stage 7 drill out. which means we're able to pivot early to focus on that stage two extension drilling, which I think is a really exciting opportunity for the organisation. Turning to slide 11 in the deck, this is the Telfer West Dome Underground. This is likely my favourite slide in the deck. West Dome Underground is undoubtedly the most exciting discoveries in Telfer recent history, and it's a really key growth opportunity for us. Just to put it in context, the main dome underground began in the 1990s, and it continues operating today some 30 years later, having produced more than 3 million ounces of gold. This is our first drive into the West Dome underground. You've got the same geological units So the size of the prize here is extraordinary. We announced that first set of drilling from the west dome underground, that phase one drilling results in February 25. This delivered the really high grades, the highest average grades you've seen at Telfer since 2005. Excellent mining with great strike length. And we confirmed that those same key geological units that you see in the main dome underground that carry that high-grade mineralization repeat in the West Dome Underground. So say we've got two rigs on West Dome Underground. We've completed nine holes. We did that quarterly exploration drilling update last week. You just saw the first two holes come back with assays from that. The three intercepts Probably the highlight there is the hole 99, which had two separate intercepts in it covering over 75 metres combined, including 5.6 grams plus 0.25 copper. So we really like what's coming together here. It's a very promising opportunity for us. And what we're seeking to do is just try to bring a small start of this West Dome Underground into that hole into that York resource update that we want to do around the end of the March quarter. So it continues to be a real focus on us, for us, this West Dome underground. In terms of staying in the underground but moving to slide 12, the Telfer Main Dome underground, we drilled another over 7,000 metres across 67 holes. The focus for us was very much that ESC, that Eastern Stock Works. ESC central area, we were able to successfully take from the ResDes team and pass across to the underground team. Delivering donations like this to the operating teams is part of our really clear focus here of creating greater flexibility and resilience in the underground space. That's why development meters has been a real focus for us since acquisition. And we think this just continues to bear fruit as we create additional mining areas in the underground. Slide 13. Again, still in that Telfer underground, just looking at some of the main dome underground, just looking at some of the higher grade donations that we're drilling out. If you have a look at the Kylo area, This is just successfully extended mineralisation as we continue to kind of drill this forward. And whilst Tarkin, further to the right of screen, we completed the resource conversion drilling program for the quarter. And again, another area that's been able to pass across from ResDev to the operating team to again provide that greater flexibility and resilience, which has been a focus for us as we want to, we inherit a mind where that the mine faces right up next to mine planning. And over the last 10 months, we've really started to improve that and get ahead on mine planning and development. Slide 14 is main dome underground, still the ray area. Ray is a really high-grade area for us, but particularly copper-rich. We're going in and we're taking out the secondary stoves. There's a paste plant at surface, at Telfer. It was effectively a new plant built a while ago but hadn't been used. That was commissioned. It's allowed us to take out these secondary stoves in Ray. But in addition to that, we've completed a program that's extended mineralisation along Strike, again, with a view to kind of delivering that to the ops team during this present quarter. So, again, really positive development there at Ray. If I just switch to slide 15, which is Havron. Havron, the feasibility study continues to be progressed, and we're really targeting getting that to market during the current quarter. I think realistically that's December, but we want to try to get that as early in December as possible, and that will follow the review by SRK. The permitting process continues there at Tavron. We've actually got some pretty positive engagement with the relevant EPA departments, so we feel that is tracking well. And then in parallel to this, as we prepare to re-enter, we effectively have re-entered, we're doing a lot of work around ventilation. The box cart where we're actually taking that to be a surface portal to manage rainfall events into the future. We're just moving the chain forward as we approach the feasibility study and final terminating. Slide 15, which just gives a bit of an overview on the financing. There's quite a lot of information on this slide. But in essence, we generated $476 million of revenue during the quarter from the sale of just over 82,000 ounces of gold. But again, just over 3,000 tons of copper as well, which is a great kicker. Gold sales was about $5,277 an ounce. And the key takeaway on that is that's roughly $1,000 lower than the current gold price, which again sets us up for good success in the quarter ahead. The waterfall chart on the left of screen just shows the build-up then from original cash position, which was already a very healthy $575 million. We generated $285 million of operating cash flow, and then we invested in the site. We spent around $87 million on the opportunities to extend the life of Telfer, but we still ended the quarter with just over $750 million cash at bank, zero debt. We remain exposed to the market gold price, which we think is positive. The same for copper. But we do have that put portfolio, which just gives us protection. It's insurance. We don't expect to use it, but it's nice to have the insurance in. And even at those what look like low prices today, $4,200 gold, when we entered them, you know, we're giving ourselves high fives. It looks so attractive. But we're very glad that we did that as put options. So we continue to participate in the gold prices. A few just items to remind people for this quarter. We've just paid $46 million to the Office of State Revenue here in Western Australia for stamp duty for the acquisition. So you're going to see that in the December quarter numbers. And we do flag and just remind people when we released our financial statements, you would have seen the tax liability of $76 million. We expect that to be paid in the March quarter. Effectively, that profit generation you've seen has meant we've gone through those carry forward tax losses a little bit quicker than otherwise. So we'll pay that in the March quarter and thereafter we'll move to regular monthly installments of tax. In addition, particularly for the analysts, we just want to give updates, which you see in the body of our quarterly announcements, In terms of the non-cash inventory movement, a credit of $18.2 million. And we also give a bit of guidance on depreciation and amortization, which was $20 million for the quarter. But that should grow to about $120, $140 million for the full year because we do continue to invest in the site and the acquisition depreciation is a little bit slower than some of that new assets that we're putting in. But importantly, just kind of turning back to that cash flow position, that $750 million at bank, no debt. I think that really sets us up for success in terms of Havron. It de-risks and provides a lot of flexibility about delivering Havron, which we think is hugely attractive. I'll just turn to slide 17 as well. Just puts in context the cash generation we've delivered since Greatlands taken ownership of Telfer. $885 million of operational cash flow. That's translated into zero debt, that big cash balance. But the upfront consideration was just $541 million. And even by June, we delivered over $600 million in cash flow. A payback of inside of six months, we're somewhat 1.6 times already. So it's been really, really strong outcome for us and what we've been able to achieve at Telfer. It's a remarkable achievement. And to do a payback that quickly, I think is rare. And again, it sets us up for success and financial flexibility for delivering Havron. Just to conclude the presentation on slide 18, the September quarter was a really successful operating quarter and a great credit to the operational team at Sykes. At Chelsea, there's really been two key focuses for us, just continued operational delivery, but also completion of this ambitious program around investing in the drill bits, which we think you'll see part of that manifest in that Telfer mineral resource in the March 26th quarter, plus then the following quarter, the June quarter, when we can come out with the ore reserve update. But those rules are going to continue to run in the second half of the year. So we continue just to add inventory potentially. At Havron, we just continue to focus on delivering that feasibility study in December. In combination, we think the development of Havron and the opportunity to extend the life of Telfer gives us this exceptionally strong platform. We can capitalise on the current strong gold price and copper price environment. We can leverage these Telfer operations into delivering Havron. And we also have this wonderful opportunity to extend the life of Telfer because the strongest you're going to see Greatland is when you're operating Havron and Telfer together. So this is a pretty rare confluence of immediate cash flow generation and complementary growth. With that, I'll now ask the moderator, Ashley, to open it up to 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 today comes from Daniel Morgan with Baron Joey. Please go ahead.

Hi, Sean and Tim. Just can you remind us, just to have her on, to step us through the permitting again. You know, where are you in the process? What is your expectation of timing? Understand that that is outside of your hands to some extent. And just, Assuming permits are received at a certain point, what does that mean for FID on the project?

Thank you. Thanks, Daniel, for the question. Look, Havron permitting is significantly advanced. It was certainly started by Newcrest well before we took ownership, and we continue that advancement, both with the state EPA and the federal EPA. It isn't the final kind of part of that process. It's gone out for public comment and other elements of that, which we think is encouraging. And we do seem to have a good relationship with the EPA, both at a state and federal level. The sequence of events will effectively be we'll release the feasibility study. At some point in time, we'll get those final EPA permits. and then subsequent to that, we'll announce the official FID. That will probably mean when we release that feasibility study, we do it somewhat the way Capricorn did, where they kind of did the P plus 1, P plus 2, i.e. the timetable is permitting plus 1, permitting plus 2. We might use a slightly different vernacular, but I think that's a positive way. Albeit, we do think we're in the end phases of that EPA... Permitting process, I'm quietly optimistic, but I guess as optimistic as anyone can be in terms of describing the timeliness of the government department, but it does seem, I'll just leave it as encouraging.

Thank you. And maybe if you could just expand on recoveries. So that was a clear highlight this quarter and there's been a few quarters since ownership of good recoveries. I understand there's several ore bodies with lots of complexity to different ore types and its influence on recoveries, but is there a way you can simplify it for us on how you're thinking about recoveries going forward across the site versus perhaps your business plans? Thank you.

Thanks, Daniel. Why don't I pass that one across to Simon, who's been leading the charge on that.

Thanks, Sean. Thanks for the question, Daniel. Look, as you've noted, exceptional achievement by the team. Best quarterly results since 2010. Look, this was due to that focus on the pyrite circuit and leaching circuit at the back of the plant. This was often overlooked as an area that didn't contribute significantly to recovery. But the background knowledge that team we've brought on had the original feasibility study has allowed us to unlock these higher recoveries. There was a point where we thought, as we progressed through the new stage 7 cutback, that that ore from the oxide and transitional part of the pit may cause us some lower recoveries. However, at the current blend rates, which is around 15% of stage 7 material in the overall blend, that's not causing us any concerns, and so we expect to achieve those mid-80s or above moving forward for FY26. When we go into FY27, we do move to 40% of Stage 7 as a blend. So we'll need to do a bit more work to see whether we can maintain those into FY27, but certainly FY26, as noted, we're comfortable getting that mid-80s or above.

Yep. Thanks, Simon. And I think, again, a credit to the team that they've delivered this, but it was also... an opportunity we saw through that due diligence, and I think the team's done really well to execute on that opportunity.

Thank you. And last question is just, so there's been a heavy focus on waste stripping at stage seven. Just wondering, you know, when do you get into a sort of an all-harvest phase, and how does that sequence with your expectations of when the high-grade stockpile will be exhausted? Thank you.

Thanks, Daniel. So as I mentioned, we've got about 15% of Stage 7 in the blend this year. That goes up to 40%. So we'll have somewhere in the order of 8 to 10 million tonnes of ore from Stage 7 in FY27. The high-grade stockpiles, they wind down or they're consumed in the March quarter next year. So that'll give you a flavour. for how that sequencing happens. As I mentioned, we are looking at uplift plans for the open pit. As we've locked in the schedules for the new equipment, we can start to put that into the open pit schedules, and that might bring forward some of that Stage 7 material, but that's work in progress at this point in time.

Okay, thank you very much for your perspectives.

The next question comes from Hugo Nicolese with Goldman Sachs. Please go ahead.

Good morning, Sean, Simon and team. Thanks for the update this morning. I just want to dig in to some of the costs a little bit more in the quarter as well, particularly around just the processing and site services costs. Obviously, some increases over the last couple of quarters, you've touched on some of the plant work, but are you able to just give us a sense of where those costs should sit going forward from here?

Yeah. Thanks, Hugo. Look, in regards to site services, we see that sitting in that lower 20s type mark. I think we're at 29 for the quarter million. So that'll drop that down to somewhere around that 23 million mark moving forward. That's what we expect it to be. On the processing side, on a unit rate perspective, Q1 was always expected to be higher because of the large shutdown situation. It's the cooler part of the year. So when you're talking about labour productivity and so forth, aligning the longer shutdown in those cooler periods. Additionally, it's not raining either, which also can delay shutdown. So we do that bulk of that work in the July shut. So that would be a high watermark for processing costs for the year as well. So you'll see the processing costs on a unit rate. drift down over the year, over the financial year.

And maybe just to add to that in terms of site services, during this quarter you've seen us do some work on TSF 7 rehabilitation. That's currently not an active tail storage facility, but for those who have been at site, it's a very large tail. It's still a tail storage facility. It's got five lifts still approved on a We see recommissioning that and bringing that back in. It's a much more efficient tail stand in terms of cost. It's upside risk. If we can bring that in, I think you'll see us be able to walk down sustaining capex. That's part of our opportunity. So we want to spend some time, energy and effort to see if we can achieve that. But if we do, I think it will be really beneficial for us.

Fantastic. Thanks for that. And then if I can... So to get into the price realisations on the copper piece and how you're seeing the TCRCs, should we expect copper to continue to sell at that sort of 10% to 20% discount as a con and then where you see those treatment and refining charges for the rest of the year?

Yeah, let me answer that in two parts. So the TCRCs, I think, are really a good outcome for Greatland. I've spent a little bit of time around marketing Copicoms in a previous life and I've brought some of the people I've worked with previously to deliver this, which is doing really well. I think the TCRC outcomes we're getting are exceptional. One of the reasons for that is just Telfer is a very accepted product in the market. It's just got a long, long history of being a reliable Australian producer and it doesn't have any deleterious elements. So it's an attractive con. And I will add to that, once we bring Havron online, it looks even better. That's going to be one of the best copper concentrates on the market. So we really like where we're seeing, and you're seeing a little bit of positioning already by those buyers of the concentrate just wanting to pre-position to get an opportunity to acquire Havron concentrates. In terms of the pricing on it, look, our focus is actually on that gold pricing, which I think is really strong. When we look at the copper pricing, there is payability in there, which I think is pretty market standard. But overall, we're participating in the copper price. There's no TP or price participation there. or kind of long fuses on pricing index. So again, it's a really attractive pricing mechanism within those copper concentrate offtake agreements, which just reflects the quality of the product and the reliability of Telfer as a producer of it.

So Adam, if I could just dig in a little bit further. So just to clarify, are you seeing TCRCs at the moment then still as a net benefit or have those returned to a modest charge?

they're a net benefit. And when you look at those benchmarks, you can actually outperform those benchmarks pretty substantially. So I don't want to kind of, you know, discuss them specifically in terms of numbers. But what I will say is the latest round of contracting we've done is materially better TCRCs from a great perspective than the last batch that you're already seeing in the numbers. So if anything, it gets a bit better from here.

Your next question comes from Andrew Bowler with Macquarie. Please go ahead.

Hello, Sean, Simon and Rowan. Excuse my croaky voice. You've already answered my question about Westome Underground making an appearance in the March 26 resource update. Simon, I think I heard you said in the prepared remarks that you're looking at a multi-year life of mine plan in mid-CY26. Just wondering What are the key changes we should look out for there? It sounds like we might get a scenario with a Stage 2 of West Dome open pit, but is that too early to expect some numbers from the West Dome underground in that Life of Mine Plan mid-next year?

Thanks, Andrew. The key building blocks of that Life of Mine Plan are the 240,000 metre drill program for this year, so that will inform The MRE and the reserves that come out of that will form the building blocks of that life of mine plan. So until we do that, we won't have the detail to talk about. Certainly, we're optimistic about the stage two extension on Westome open pit. And given it's open pit, given we're a large processing plant, having that volume of material as the cornerstone of Telfer is, would be very, very creative moving forward. So strong on that. With regards to specifically asked about West Dome underground. So we will have a resource on that next year, but we need to do some engineering works and some study works to determine the best approach to mining that. And at this point in time, you can see it's open in a number of areas. So we have to be sure that when we go and approach this area to mine it, we've got a full understanding of the scope of where the ore sits. So look, we'll communicate our approach to those studies in due course. So in that plan for mid next year, it wouldn't make it into that plan for mid next year.

And Andrew, if I just augment that, the Yeah, I think we're really positive about the trajectory for Telfer mine life extension. But the lovely thing here is the opportunity for that to coexist with the Havron production. Because not necessarily in terms of volume, but in terms of ounce profile, given the grade at Havron, Havron becomes that baseload feed. And then you take a little bit of the pressure off Telfer, the run rate slows down at Telfer. and it can generate ounces in parallel. And look, if you share my optimism about West Dome Underground, that's a lovely little addition to the mill feed.

All right, understood. That's all from me. Thanks.

Once again, if you wish to ask a question, please press star 1 on your telephone. Your next question comes from Paul Hissey with Morlis. Please go ahead.

Good morning, guys. There's a couple of questions on some of the numbers here. Firstly, the inventory charge, I think $18 million, you say, in the notes. In reporting this outside of all in sustaining costs, which would probably be contrary to what we see across the peer group, is this a discretionary move or is this because of its nature as an acquired part of the business that it enables that to be booked separately?

Yeah, Paul, thanks for your question. That number's a credit, but you're exactly right in the question. It's a function of the thing. Stockpiles are acquired at acquisition, which if you go through the World Gold Council definition means you exclude it from all in sustaining costs. So we are sticklers for the rule book on this one.

Peter Allcroft- yeah and then Secondly, just the. Peter Allcroft- The additional waste movement in stage seven I don't I don't see any sort of stripping charge or stripping contribution here in your in your all in sustaining either is that is that all capitalized and is there is that therefore included in your other capital disclosures.

Yeah, so, look, that is capitalised, that pre-strip, and will be amortised, I'd expect, across FY27 and FY28 when that becomes the baseload fee for Telford. So, again, I think that's pretty... standard there with effectively doing the pre-strip that the lifting's being done right now by stage two and the high-grade or the ROM stockpiles. And then into FY27, FY28, you'll see the DNA coming out of that pre-strip.

Okay, thanks.

Your next question comes from Ben Lyons with Jarden. Please go ahead.

Thank you. G'day, Sean. Simon, if we cast our minds back three months ago, there was a lot of concern about the reconciliations in the stockpiles and the ore feed for the next 12 months. Now, obviously, you've done a lot of work in the intervening period, but I was just wondering if you'd talk through your experiences there and just give us an update on the increased level of confidence, I guess, in the metallurgical recoveries and reconciliations. Thanks very much.

Yeah, look, we think you just see from the outcome this quarter that that kind of worked really well for us. What we've done is we've switched, and again, we did this acquisition to the 25 by 25 metre drill spacing program as opposed to the 50 by 50 metre that we inherited. That gives us a more informed view around the block model resolution. We don't think any of this impacts FY26 guidance because what we've seen is those stockpiles kind of performing to that expectation that we set in the market. So we're kind of pleased we did that. And then what you've seen is a bit of outperformance in the underground performance and in recovery. That's notched us up a little bit, which has been pleasing. Okay.

Thanks, Sean. And there was also a comment in the release about a review of the short-term metal pricing strategy where you've identified some additional lower-grade material that might come into the mix over the next 12 months. Can you just elaborate on that a little bit more, please? Like, have you increased your internal sort of price projections, obviously given very strong gold and copper prices at present, and what sort of grade we're actually talking about for some of that marginal material. Thank you. Thanks, Ben. Simon here. Look, when we went through and reviewed our planning model and we reviewed the metal pricing in there, we see an opportunity where when the metal pricing is above, say, that $5,000 an ounce pricing point, we've got the opportunity of bringing this low-grade material in at good margins. That coupled with a review or putting our current cost structure through that model and also building in the upside to the recoveries ended up with identifying that 2 million tonnes. So it's on the low-grade side. So typically low-grade ran about that 0.33, 0.35 grams per tonne. This material does sit below that 0.3 grams per tonne. But as I said, This material is already mined. It is trucked past the crusher to the waste dumps. So we'll take that into account. If there's an area of the mine schedule where we're predominantly mining waste, we can look at bringing that material into the plant, but we'll work through that, how that looks like for the second half.

If I can add there, Ben, the key word is optionality there. It's just we're already moving that material to get through the crusher feed ore, which provides the financial basis of the size of the cutback or the material move. And we've got this ore. It's economic at today's prices. It runs past the mill, particularly if there's an opportunity to erect it, that it looks attractive. But it's just optionality.

Yep, no, I completely understand. And what an extraordinary gold market environment when 0.3 gram dirt is economic. So just broadening that to... Sorry, Sean.

And on that then, like, sorry, it is worth noting that what is exceptional about Telford is just the size of the rock factory. It's big. And we've got really low processing costs. The improved recovery really helps. And you look at what we've done to the cost structure since acquisition, we've walked that down. Yes, we've got that gold price tailwind, but I think we've made some adjustments that have also added to that opportunity. But the size of Telfritz Australia's third largest mill, it's the largest mill in the mid-cap section, creates that optionality for us.

Yep, yep. Noted and great work on the cost base. Maybe as you're sort of thinking about Yeah, protecting the downside and, you know, again, awesome strategy by just having a few sort of puts in place but not having any forward commitments. So you've got that full exposure to current gold prices. Any change in thinking about the hedging strategy? Obviously, you don't have any debt. You've got a truckload of cash on the balance sheet. But, yeah, just how you're currently thinking about protecting the downside. Thanks, Sean.

Yeah, look, thanks, Ben. And look, I think Greatland at the time of the acquisition were the first ones to pursue that kind of put option strategy. It was a credit to the finance team to put that together. And also the board. Not often do boards actually accept paying the put option and buying the insurance. But in the end, I think we got payback on that put option strategy literally in the first month. So it was really successful. I think you'll continue to see us roll forward that kind of put option strategy. We really like it, particularly in this market. Sometimes the extension question there is we've got the Havron financing coming up. Will the bank seek to impose hedging? Look, I think that Havron financing, when you've already got $750 million in the bank, You know, for the finance market out there, it's like bees to honey. So I think that's going to give us an opportunity to resist any forward pricing as part of that financing. and maintain that put option strategy. So we're pretty confident we can maintain that into the future. And again, you're doing a major project, but we can resist any kind of bank-imposed hedging because of the strength of Telfer, because of the strength of the platform that we've established.

That's very clear. Thank you very much, and well done, Sean and team. Thank you.

There are no further questions at this time. I'll now hand back to Mr. Day for closing remarks.

Oh, look, just briefly, just wanted to say thank you for everyone for dialing in this morning. We appreciate that. And also just thanks, Ashley, for moderating so smoothly today. Thanks again, everyone.